Wednesday, April 30, 2008

Doomed Chernobyl Reactor To Be Buried In Giant Steel Coffin

KIEV, Ukraine -- Twenty-two years after the Chernobyl nuclear disaster, work is under way on a colossal new shelter to cover the ruins and deadly radioactive contents of the exploded Soviet-era power plant.

This May 10, 2007 file photo shows a general view of empty houses in the town of Pripyat and the closed Chernobyl nuclear power plant in the background.

For years, the original iron and concrete shelter that was hastily constructed over the reactor has been leaking radiation, cracking and threatening to collapse. The new one, an arch of steel, would be big enough to contain the Statue of Liberty.

Once completed, Chernobyl will be safe, said Vince Novak, nuclear safety director at the European Bank for Reconstruction and Development which manages the $505 million project.

The new shelter is part of a broader $1.4 billion effort financed by international donors that began in 1997 and includes shoring up the current shelter, monitoring radiation and training experts.

The explosion at reactor No. 4 on April 26, 1986 was the world's worst nuclear accident, spewing radiation over a large swath of the former Soviet Union and much of northern Europe. It directly contaminated an area roughly half the size of Italy, displacing hundreds of thousands of people.

In the two months after the disaster, 31 people died of radioactivity, but the final toll is still debated. The U.N. health agency estimates that about 9,300 will eventually die from cancers caused by Chernobyl's radiation. Groups such as Greenpeace insist the toll could be 10 times higher.

The old shelter, called a "sarcophagus," was built in just six months. But intense radiation has weakened it, according to the U.S. Nuclear Regulatory Commission, and rain and snow are seeping through cracks.

Officials say a tornado or earthquake could bring down the shelter, releasing clouds of poisonous dust.

The first step, shoring up the sarcophagus, is almost complete, Ukrainian and EBRD officials say.

Later, the 20,000-ton arch — 345 feet tall, 840 feet wide and 490 feet long — will be built next to the old shelter and slid over it on railtracks.

Its front side will be covered by metal, and the back will abut the wall of reactor No. 3. Construction is to begin next year and be completed in 2012, and it is designed to last 100 years. It is designed and built by Novarka, a French-led consortium.

Workers will wear protective suits and masks, and those needing to be closer to the radioactivity will work in shifts as short as several minutes.

Once the arch is up, the least stable parts of the old shelter and the reactor will be dismantled and removed. In 50 years, the nuclear fuel will be extracted, although it is unclear where it will be stored.

The EBRD says 95 percent of the reactor's nuclear inventory is still inside the ruins, but some experts believe most of the radiation was released in the days after the accident.

The new shelter evokes mixed feelings among Ukrainians.

Some are just happy the reactor is finally going to be made safe. Others, especially those directly affected by the disaster, accuse the government of playing up the new shelter at the expense of treating their health problems.

Scientists continue to debate the Novarka solution, with some saying the reactor should be dismantled or embedded in concrete. Others say the government should be more concerned about the contaminated land, ground water and equipment, and the spent nuclear fuel.

This nation of 46 million gets almost half its electricity from 15 reactors at four power plants. None is of the Chernobyl type.

President Viktor Yushchenko wants to expand Ukraine's nuclear power industry, but environmentalists say the lesson of Chernobyl is that nuclear power carries hidden costs and dangers.

"Nuclear energy has shown how expensive it is," said Vladimir Chuprov of Greenpeace Russia.

Source: AP

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Yushchenko Faces Loss Of Powers

MOSCOW, Russia -- Three factions in the Ukrainian parliament, including the pro-Western bloc of Prime Minister Yulia Tymoshenko and the pro-Russian Party of the Regions, are planning to pass a new constitution that would significantly curb presidential powers, Vedomosti reported Tuesday.

Viktor Yushchenko

The Party of the Regions, the Communists and Tymoshenko's bloc, which together have a constitutional majority in the parliament, believe Ukrainian President Viktor Yushchenko should be stripped of most of his executive powers and become largely a figurehead, Vedomosti cited sources in the factions as saying.

As the head of state, the Ukrainian president currently has the power to hire and fire the heads of security and law enforcement agencies, as well as the foreign minister, among other government posts.

But presidential nominees for the prime minister post -- which controls appointments in social and economic agencies -- require parliamentary approval.

The draft constitution will be endorsed by the three factions and then confirmed by the Constitutional Court, a source in Tymoshenko's bloc told Vedomosti.

Alexei Plotnikov, a deputy with the Party of the Regions' parliamentary faction, said the draft would be put up for vote after the May holidays.

Source: The Moscow Times

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UEFA Boss Platini To Visit Poland, Ukraine In July To Check Euro 2012 Progress

GENEVA, Switzerland -- UEFA president Michel Platini will visit Poland and Ukraine in July to check on their preparations for co-hosting the 2012 European Championship.

UEFA President Michel Platini

The two countries have to intensify their efforts over the next few months in order to meet UEFA's requirements, Platini told a news conference in Geneva on Tuesday.

But "there is no Plan B," he said, referring to possible alternative venues in case the former eastern bloc states fail to put in place the necessary infrastructure to host the event.

UEFA spokesman William Gaillard said Platini will travel to Poland and Ukraine after Euro 2008, held in Austria and Switzerland in June.

Gaillard said UEFA's main concern is whether the hotels and transportation networks - including airports, railways and roads - will be sufficient to host the hundreds of thousands of fans expected for the event.

"We're not thinking of moving it elsewhere," Gaillard told The Associated Press. "We have to do it there, but in order to do that the efforts have to increase."

Gaillard also said UEFA was doing everything it could to crack down on illegal ticket scalping online, but that it faced legal constraints.

"In some countries we cannot get a court order that stops someone from reselling tickets," he said.

Several websites are selling tickets for Euro 2008 games, with prices for the opening match starting at 640 euros (C$1,000) and the best seats for the final in Vienna going for 4,480 euros (C$7,000).

Gaillard said each ticket will be numbered and spot checks may be carried out to ensure that fans acquired them in accordance with UEFA rules.

He warned that "there's absolutely no guarantee that when you go to the stadium you can get in" with a ticket bought through unofficial channels.

Source: The Canadian Press

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Tuesday, April 29, 2008

Ubisoft To Open New Ukraine Studio

SAN FRANCISCO, CA -- Publisher Ubisoft has announced that it has chosen Kiev, Ukraine as the location for its latest internal studio to assist its Bucharest studio on Tom Clancy's HAWX, with plans to employ as many as 800 people across Eastern Europe by 2009.

Tom Clancy's HAWX

Ubisoft says that a "core team of 12 developers" in the region, led by Vitalii Blazheiev, has already been part of the development of the PC version of Blazing Angels: Secret Missions of WWII, and the that studio hopes to employ some 50 people within the coming year.

Ubisoft also notes that it has maintained a presence in Eastern Europe for 15 years, first with its Bucharest, Romania studio -- now employing over 500 people -- and later its Sofia, Bulgaria studio -- currently employing over 50 -- following the success of Silent Hunter and Blazing Angels.

Said Ubisoft worldwide executive director Christine Burgess-Quémard, "We have had a very positive experience in Eastern Europe, as the quality of the upcoming Tom Clancy's HAWX developed by our Bucharest studio can attest. Having seen the potential demonstrated by the Sofia studio's first projects, it was only natural for us to pursue our expansion in this region and attract a new pool of highly-skilled talents to the group."

Source: Gamasutra

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Yushchenko, Tymoshenko Clash Over Privatization

WASHINGTON, DC -- Ukrainian President Viktor Yushchenko and Prime Minister Yulia Tymoshenko have demonstrated that they would not stop short of open confrontation when big property is at stake.

Confrontations between Yulia Tymoshenko and Viktor Yushchenko are getting dirty.

Yushchenko cancelled Tymoshenko’s orders to replace the head of the privatization body, the State Property Fund (FDM), and to privatize one of the last big factories still remaining in state ownership, the Odessa Portside Plant (OPZ).

Tymoshenko, with the courts on her side, disobeyed and instructed her subordinates, perhaps for the first time ever, to ignore Yushchenko’s orders.

Yushchenko sent his guards to protect the FDM from Tymoshenko’s team, and confrontation between the Presidential Guard and police was barely avoided.

Yushchenko opposes Tymoshenko’s efforts to privatize big industry assets in 2008. Tymoshenko makes no secret of her plan to spend money raised from privatization on compensations to those Ukrainians who lost their savings in the defunct Soviet state savings bank and on other social programs.

Yushchenko says that Tymoshenko’s plan is tantamount to squandering national wealth. His team suspects that Tymoshenko wants to use privatization proceedings to buy popular support for the 2010 presidential election.

The Tymoshenko cabinet approved a privatization plan for 2008 in February. It provides for raising some $1.8 billion by privatizing assets in electricity companies, the Ukrtelekom fixed-lines operator, the Turboatom manufacturer of equipment for nuclear plants, and OPZ, which is the key producer of ammonia and carbamide.

OPZ is probably the most attractive of those assets. Tymoshenko plans to sell it for over $500 million. From February to April 2008, Yushchenko issued several decrees suspending Tymoshenko’s privatization orders, including OPZ privatization.

Tymoshenko tried to replace FDM head Valentyna Semenyuk, who has survived several cabinets from 2005 to 2008 in this position. She believes that Semenyuk has been torpedoing her privatization efforts on orders from Yushchenko.

On February 6 Tymoshenko suspended Semenyuk and appointed Andry Portnov, a member of her party, to replace her. However, Yushchenko decreed on February 7 to suspend Semenyuk’s dismissal and requested the Constitutional Court (KS) to check the legality of Tymoshenko’s order.

He recalled that in 2007 he had decreed that the FDM was not part of the executive, so Tymoshenko could not replace its head.

Yushchenko lost to Tymoshenko in the KS, which threw out his appeal on April 17; but Yushchenko appealed again on the same day. Tymoshenko argued that Yushchenko could not appeal on the same matter twice, and she reportedly decided to replace Semenyuk by force.

Yushchenko warned her against this at his press conference on April 24. He said that only parliament could replace Semenyuk.

Yushchenko slammed Tymoshenko’s privatization policy. “What’s happening to privatization in Ukraine now reminds me of a seasonal sale at a Kiev supermarket,” he said, “but in our case national security is at stake.”

He warned against “sweet populism.” He said that he was not against OPZ privatization but that OPZ should be privatized without its transshipment facility, which was also used by other companies in the region. Therefore, according to Yushchenko, it was of strategic importance for Ukraine.

On April 23 Yushchenko ruled to replace the Interior Ministry’s security guards at the FDM with the Presidential Guard in order to prevent the FDM’s takeover by force.

The Interior Ministry reportedly had not been warned of that decision so that its security could offer resistance; but common sense prevailed.

The FDM passed under Yushchenko’s armed control without violence. When a district court in Kyiv confirmed Semenyuk’s suspension on April 24 and Tymoshenko arrived at the FDM on April 25 personally to install Portnov in Semenyuk’s place, Semenyuk, protected by Yushchenko’s guards, did not move.

The same court ruled to continue OPZ privatization, but on April 25 Yushchenko decreed it suspended again. Tymoshenko instructed Portnov to disobey Yushchenko’s decrees and to carry on with OPZ privatization.

This time the Prosecutor-General’s Office intervened, canceling Semenyuk’s suspension by Tymoshenko. In response, the Yulia Tymoshenko Bloc threatened to launch a no-confidence motion against Prosecutor-General Oleksandr Medvedko in parliament.

First Deputy Prime Minister Oleksandr Turchynov, speaking in a TV interview, accused Yushchenko of pursuing “private interests” in privatization.

Turchynov did not specify what those interests were. Zerkalo Nedeli quoted “rumors” suggesting that OPZ was contested by the Ukrainian tycoons Kostyantyn Zhevaho and Ihor Kolomoysky.

Zhevaho is a member of Tymoshenko’s party, while Kolomoysky pledged in a recent interview that he would back Yushchenko in a presidential election.

Speaking at a talk-show on Inter TV, Semenyuk said that she would not go until parliament replaced her. Semenyuk knows that parliament will not do that any time soon, as the biggest caucus in it, the opposition Party of Regions, will hardly back Tymoshenko in her dispute with Yushchenko.

Semenyuk accused Tymoshenko of trying to sell OPZ “for a song” in order to “pay the oligarchs” for political support. Semenyuk also said that OPZ should not be privatized at a time when “world prices and the Ukrainian stock market are falling”.

Source: Eurasia Daily Monitor

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Monday, April 28, 2008

Ukraine Chopper Crashes In Black Sea, Killing 19

KIEV, Ukraine -- A helicopter belonging to Ukraine’s state gas company crashed into the Black Sea, leaving 19 people dead, a company official said Monday.

A Mi-8 transport helicopter

The Mi-8 helicopter went down around 2:30 a.m. EDT as it was trying to land, said Valentyn Zemlyansky, a spokesman for the company, Naftogaz.

One person survived, he said.

The ITAR-Tass news agency reported that most of the passengers were employees of the gas company who were headed for an offshore drilling rig.

The Mi-8 is a workhorse helicopter used widely in civilian aviation and the military in the former Soviet Union.

Crashes occur frequently and are often blamed on poor maintenance and excessive age.

Last month, Ukrainian border guards in a helicopter crashed into the Black Sea, killing 12 people.

Source: MSNBC

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Paul McCartney To Knock Out Ukraine Girls With Free Show

KIEV, Ukraine -- On Saturday 14th June 2008, at the invitation of the Victor Pinchuk Foundation, Paul McCartney will perform to hundreds of thousands of people in Independence Square, Kiev, Ukraine.

Paul McCartney

This groundbreaking event has been named Independence Concert and was launched in Kiev by the Victor Pinchuk Foundation. Paul's special show will be free to attend and will be broadcasted live on Novy TV.

"I'm very excited because on the 14th of June I've been invited to play a concert in Independence Square, Kiev," Paul McCartney said. "Me and the band are going to be there and we're going to have to a great evening and we hope to see you there. So come along, it's going to be great evening hopefully for Ukraine. Pull together, groove, rock and roll – all together"

This exciting event will be seen as symbolic for several generations of Ukrainians. It will allow people of different ethnicities and religions, political preferences and geopolitical orientations to come together around the ideas of peace, love and unity; the very ideas that Paul McCartney with The Beatles helped bring into the World.

Independence Concert is an independent social initiative that aims to strengthen the confidence and understanding in the Ukrainian society.

The ideology and spirit of The Beatles helped build the democratic aspirations for much of the Soviet society and eventually led to the peaceful collapse of the USSR and independence of the former Soviet republics.

Independence Concert appeals to the ideals that helped 30 years ago to melt down the ice of the 'cold war' in the hearts of millions and changed the world into a better place.

Today the ideology that forms the core of Ukrainian independence is shared with Paul McCartney's own ideology. Independence Concert serves to promote happiness, freedom, love and peace not only in Ukraine but also to the entire World.

It is planned that this historic concert will be broadcast live on screens in cities across the Ukraine for those who can't make it to Kiev.

Victor Pinchuk, Ukrainian businessman and philanthropist and founder of the Victor Pinchuk Foundation said: "One could not imagine this 30 years ago. Nobody could even dare to hope for this 20 years ago. One could only dream about it 10 years ago. 5 years ago we could only envy our neighbours for whom this became a reality. And finally the day has come. For the first time we have the opportunity to hear the songs that changed the world and created a new culture. The songs that we grew up with and became who we are.

These songs tell us about very simple but nevertheless important things: real love can't be bought and that real friendship can't be sold.

There is much more to what unites people than what divides them, and in reality it's not an impossible task to become a better person and to make the world a better place, especially if you do it all together.

Recently, we had not so many reasons to unite. Not to group under some political flags but to really gather all together.

There are not so many ways to bring together the East and the West, to make the young and the mature closer, to combine different convictions and aspirations into one common national idea of building a free, tolerant and prosperous country. And I believe that this initiative and the concert can help us"

In addition to the concert the Victor Pinchuk Foundation will also be exhibiting 40 of Paul's paintings at the Pinchuk Art Centre, the largest in Eastern Europe.

This will be Paul's first exhibition in this part of the world. His first art exhibition was in Siegen, Germany in 1999. Paul will personally open the exhibition.

Source: antiMUSIC

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Sunday, April 27, 2008

Belarus/Ukraine: Reports From The Contamination Zone

PRAGUE, Czech Republic -- More than 20 years after the Chornobyl catastrophe, hundreds have chosen to ignore the warnings and return to live in the contaminated zone that straddles the Ukrainian-Belarusian border. And many more are on their way.

Man and his mother who returned illegally to their village, in the "30Km exclusion zone".

They are called the "resettlers." In defiance of health warnings, they have chosen to return to the "exclusion zone" -- the 30-kilometer area surrounding the site of the Chornobyl nuclear disaster.

It has been 22 years since an explosion at the Chornobyl nuclear power plant, located near Ukraine's border with Belarus, spewed radiation across large swathes of Europe and the former Soviet Union.

After some 350,000 local residents were evacuated in the immediate aftermath of the 1986 accident, the surrounding area became a massive ghost town.

But little by little, people began returning to their homes in the contaminated sector. Despite high levels of radiation, they cultivate the land and gather mushrooms and berries from the forest.

Nadzeja Zoryna, a pensioner in her 70s, several years ago returned to her home in the evacuated village of Hermanavichy, in Belarus's Homel region.

Remembering Their Roots

There she grows wheat and potatoes -- and sometimes even sells them to visitors.

"We no longer receive benefits. And look how many unfortunate children we have, whom we have to help," she says. "We need lard, milk, potatoes. Today, foreigners came here to buy potatoes, everybody wants to buy. One needs to live -- and it's tasty."

Many "resettlers" are not aware of the dangers of radioactive contamination. Those who are, choose to ignore them.

Ukraine's emergency situations minister, Volodymyr Shandra, who oversees Chornobyl issues, says the contamination is concentrated below the surface -- precisely where potatoes and other tubers grow.

"We must understand that this territory is contaminated by radiation," Shandra notes. "This radioactive contamination is located some 15-20 centimeters below the surface of the earth and in other places as well, such as trees. It's transuranium contamination, which is very long-lasting -- for hundreds of years."

According to official statistics, only 24 families live in that part of the exclusion zone. But other estimates put the number of "resettlers" there at more than 300.

In the nearby Belarusian village of Rudnya, Katsyaryna Ihnatsenka has settled in one of the evacuated town's abandoned, decaying houses.

Life Of Exclusion

She says it's a hard life, one in which she is left to fend for herself. "I'm 78 and I had to travel to the charcoal factory myself, order a car, order briquettes, pay for it, prepare reserves for the winter," she says. "All this all cost me 500,000 rubles [$230]. Go and survive after that!"

Ihnatsenka finds little more help whenever she leaves the exclusion zone. Local officials, she says, don't even look at her and ignore all her pleas for assistance. "As though I'd drop dead tomorrow," she complains.

Source: Radio Free Europe

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Aftermath Of A Soviet Famine

MOSCOW, Russia -- Relations between Russia and Ukraine, bedeviled by disputes over natural gas supplies and NATO expansion, have lately been roiled by one of the great tragedies of Soviet history: the famine of 1932-33, which left millions dead from starvation and related diseases.

President Bush and Laura Bush, in Ukraine a month ago, visited the memorial to the famine of 1932-33 with President Viktor Yushchenko and his wife, Kateryna.

Ukraine is seeking international recognition of the famine, which Ukrainians call Holodomor -- or death by hunger -- as an act of genocide.

When Soviet dictator Joseph Stalin forced peasants off their homesteads and into collective farms, special military units requisitioned grain and other food before sealing off parts of the countryside. Without food and unable to escape, millions perished.

Ukraine, according to Ukrainian President Viktor Yushchenko, became "a vast death camp."

"There is now a wealth of historical material detailing the specific features of Stalin's forced collectivization and terror famine policies against Ukraine," Yushchenko wrote in the Wall Street Journal late last year. "Other parts of the Soviet Union suffered terribly as well. But in the minds of the Soviet leadership there was a dual purpose in persecuting and starving the Ukrainian peasantry. It was part of a campaign to crush Ukraine's national identity and its desire for self-determination."

There are no exact figures on how many died. Modern historians place the number between 2.5 million and 3.5 million. Yushchenko and others have said at least 10 million were killed.

But Russian politicians, historians and writers say Yushchenko and his allies are attempting to turn a Soviet crime that also killed Russians, Kazakhs and others into a uniquely Ukrainian trauma. They argue that the famine was the awful but collateral consequence of ruthless agricultural policies and the drive to industrialize, not a case of deliberate mass murder.

"There is no historical proof that the famine was organized along ethnic lines," the lower house of the Russian parliament said in a resolution passed this month. "Its victims were millions of citizens of the Soviet Union, representing different peoples and nationalities living largely in agricultural areas of the country."

Moreover, some Russians say, the push for the designation of genocide has more to do with demonizing modern-day Russia in the West than any desire for historical justice. Since Yushchenko came to power in early 2005, the two countries have repeatedly clashed over a host of issues, particularly his desire to integrate Ukraine into Western institutions and away from Russia's orbit.

The Russian writer Alexander Solzhenitsyn, in a front-page commentary in the newspaper Izvestia this month, wrote that the "provocative cry about 'genocide' " took shape "inside spiteful, anti-Russian, chauvinistic minds."

"Still, defamation is easy to insinuate into Westerners' minds," he wrote. "They have never understood our history: You can sell them any old fairy tale, even one as mindless as this."

That broadside came a few days after President Bush, on a visit to Ukraine, laid a wreath at a memorial to the victims of the famine. The United States and several other Western countries have recognized the famine as genocide.

But historians remain divided over whether the famine meets the United Nations definition of genocide, which defines it, in part, as the "intent to destroy, in whole or in part, a national, ethnical, racial or religious group."

"Registry office statistics for 1933 show death rates in urban localities no higher than average in contrast to the exorbitant death toll in the countryside, not only in Ukraine but all over the Soviet Union," Andrei Marchukov, a researcher at the Institute of Russian History, wrote in an article published by the Russian news agency RIA Novosti. "People were doomed not on the grounds of ethnicity but merely because they lived in rural areas."

The issue has also divided Ukrainians, with Russian-speakers, who live mainly in the eastern part of the country, dismissing the genocide charge as grandstanding by Yushchenko. The president has also proposed a law that would criminalize denial of Holodomor.

The pro-Russian party led by former prime minister Viktor Yanukovych boycotted a parliamentary vote on a 2006 law recognizing the famine as an act of genocide. His party has suggested using the word "tragedy" to describe the famine.

"It happened on the territory of many countries," Yanukovych said. "Maybe in Ukraine it had a greater effect, as Ukraine is a more agricultural country."

Some Ukrainian historians, such as Stanislav Kulchitsky, an authority on the famine who works at the Institute of History in Kiev, counter that while the famine enveloped many regions of the Soviet Union, the "smashing blow," as he said Stalin called it, fell on Ukraine and Kuban, a region heavily populated with Ukrainians.

"The mechanism was different in Ukraine," Kulchitsky said in a telephone interview. He cited the sealing off of the Ukrainian countryside in particular, saying there were no such efforts elsewhere.

Kulchitsky said the famine should be understood as part of a larger effort to wipe out Ukrainian culture and nationalism that began in the 1920s.

"It was not industrialization or modernization," he said. "It was cold-blooded killing by hunger."

Source: Washington Post

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Ukraine Remembers Chernobyl Amid Anti-Nuclear Protests

KIEV, Ukraine -- Ukraine paid tribute Saturday to victims of the Chernobyl nuclear disaster 22 years ago while anti-nuclear demonstrators at home and abroad also recalled the worst civilian nuclear disaster in history.

Women hold pictures of their dead husbands during the commemoration ceremony at Chernobyl's memorial.

A group of Ukrainians led by President Viktor Yushchenko laid a wreath during the night at a monument to the victims of the catastrophe in which a reactor exploded one night in April 1986.

"The Chernobyl catastrophe became planetary and even now continues to take its toll on people's health and the environment," the health ministry said in a statement marking the anniversary.

Demonstrators gathered in the centre of the capital Kiev brandishing placards including one reading: "Don't build a new Chernobyl."

"The consequences of the Chernobyl power station accident are huge," said activist Dmitry Khmara. "We are worried that they are again telling us to go along the risky path of developing atomic energy."

In Minsk, capital of the neighbouring republic of Belarus which suffered fallout from Cherobyl, some 2,000 people protested against plans for the country's first nuclear power station.

"No to another Chernobyl," read one placard. "We have two misfortunes, Lukashenko and radiation," read another. Alexander Lukashenko is the authoritarian president of Belarus, much criticised by the opposition and foreign governments for perceived human rights violations.

In Geneva, hundreds of anti-nuclear demonstrators wearing white masks formed a human chain around the headquarters of the World Health Organisation.

The anniversary was also marked by an all-night vigil in a small Ukrainian town called Slavutich, 50 kilometres (30 miles) from Chernobyl, where many of the reactor site's employees lived.

The disaster occurred on April 26, 1986 at 1:23 am local time, when one of the reactors exploded -- contaminating the Soviet states of Ukraine, Russia and Belarus with the fallout also spreading to other parts of Europe.

Over 25,000 people known as "liquidators" -- most of them Ukrainians, Russians and Belarussians -- died getting the accident under control and constructing a concrete shield over the wreckage, according to Ukrainian official figures.

A United Nations toll published in September 2005 set the number of victims at just 4,000, a figure challenged by non-governmental organisations.

In Ukraine alone, 2.3 million people are designated officially as "having suffered from the catastrophe."

Some 4,400 Ukrainians, children or adolescents at the time of the accident, have undergone operations for thyroid cancer, the most common consequence of radiation, the health ministry says.

Chernobyl nuclear power station was finally closed in 2000 after one reactor had continued producing electricity.

But the dead power station remains a threat because the concrete cover laid over 200 tonnes of magma, consisting of radioactive fuel, is cracking.

The magma is "our worst problem. It is highly radioactive and we are doing all we can so that rain and snow do not make it into the sarcophagus," said Ukrainian Emergency Situations Minister Volodymyr Shandra.

Work is in hand to reinforce the seal hurriedly flung over the reactor in the immediate aftermath of the disaster.

Work will also start later this year on a new steel cover due to be in place by 2012.

UN Secretary General Ban Ki-moon on Friday marked the anniversary by pledging UN assistance for the stricken region's renewal.

Source: AFP

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Saturday, April 26, 2008

Wizz Air Expands Into Ukraine

LONDON, England -- Wizz Air, the Hungarian low-cost carrier, has established a new base in Ukraine, at Kiev’s Boryspil Airport. As such, Wizz Air is opening a new chapter in Ukraine’s aviation history, by becoming the first discount carrier to operate in this former Soviet republic.

Wizz Air Airbus A320

Wizz Air will start off by offering domestic service only, rather than international routes. The first destinations to be served include Odessa, Lviv, Simferopol, Kharkov, as well as Zaporozhye.

Some of these routes will specifically serve to transport Ukrainians to popular domestic tourist resorts. All flights will commence on July 11, 2008 and, as is customary for Wizz Air, the carrier will focus on heavily discounted fares, in exchange for basic, no-frills service.

The Kiev to Odessa route will be served by seven flights per week, while those flying from Kiev to Simferopol will be able to select from 10 weekly departures from the Ukrainian capital.

Those interested in reserving tickets ahead of time for these routes may do so as of today, at www.wizzair.com. All of the routes will be served by new Airbus A320 aircraft and each will include 180 comfortable, leather seats.

Natalia Kazmer, the director general of Wizz Air’s Ukrainian branch, told journalists that the opening of the new Kiev base represents a “milestone” for both the carrier and for Ukraine.

Wizz Air was founded in 2003 and the carrier has its headquarters in Vecsés, Hungary, near Budapest’s Ferihegy Airport.

Source: Car Rentals

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UN Chief Pledges Aid On Chernobyl Disaster Anniversary

NEW YORK, NY -- UN chief Ban Ki-moon marked the 22nd anniversary of the Chernobyl nuclear disaster in Ukraine by pledging UN assistance for the stricken region's renewal.

UN chief Ban Ki-moon

In a statement to mark the anniversary which falls today, he noted that the UN General Assembly has proclaimed 2006-2016 a 'decade of recovery and sustainable development" for the Chernobyl area.

"The UN will do all it can during the 'decade of recovery' to support efforts toward the region's full renewal," Ban said as he urged the world community to "sustain its generosity in supporting the recovery of Chernobyl affected areas."

On April 26, 1986, reactor number 4 at Chernobyl nuclear power plant exploded, contaminating large parts of Europe but especially the then-Soviet republics of Ukraine, Belarus and Russia.

Over 25,000 "liquidators" who worked on the ruined reactor and constructed a concrete sarcophagus enclosing it, have died since then, according to official figures.

The station, whose last reactor continued to produce electricity, was closed down in December 2000.

Source: The Economic Times

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Ukraine Marks 22nd Anniversary Of Chernobyl Catastrophe

KIEV, Ukraine -- Ukraine paid homage Saturday to victims of the Chernobyl nuclear catastrophe, a "planetary" drama as Kiev called it, 22 years after the world's worst nuclear incident.

Ukrainian President Viktor Yushchenko (R) places a wreath at the memorial marking victims of the Chernobyl disaster.

Overnight, some hundred Ukrainians including President Viktor Yushchenko and other top state officials laid wreaths at the monument to the victims of Chernobyl in Kiev and lighted candles during a religious service held for the tragedy, the presidential press service said.

In Slavutich, a small town 50 kilometers (30 miles) away from the wrecked nuclear power station, where most of its personnel live, an overnight vigil was due to be held.

"The Chernobyl catastrophe became planetary and even now continues to take its toll on people's health and the environment," the health ministry said in a statement.

On April 26, 1986, reactor number 4 at Chernobyl nuclear power plant exploded, contaminating large parts of Europe but especially the then-Soviet republics of Ukraine, Belarus and Russia.

Over 25,000 "liquidators", mostly Ukrainians, Russians and Belarussians who worked on the ruined reactor and constructed a concrete sarcophagus enclosing it, lost their lives, according to official figures.

The official UN toll in September 2005 set the number of the accident's victims in Ukraine, Russia and Belarus at 4,000, but the figure had been contested by non-governmental organisations.

Officially, Ukraine alone numbers 2.3 million people qualified as "having suffered from the catastrophe."

Some 4,400 Ukrainians, who had been children or adolescents at the time of the accident, were operated for thyroid cancer, which is the most common consequence of radiation, the health ministry said.

The station, whose last reactor continued to produce electricity, was closed down in December 2000. However, its cracked sarcophagus, which contains some 200 tonnes of radioactive magma made up of nuclear fuel, makes it a continued threat.

The magma is "our worst problem. It is highly radioactive and we do all we can so that rain and snow do not make it into the sarcophagus," the Ukrainian Emergency Situations Minister Volodymyr Shandra said in a statement.

Ukrainian authorities had completed reinforcement of the old concrete sarcophagus, which had been constructed at speed shortly after the catastrophe, but a new steel sarcophagus, which would cover the old one, is yet due to be built.

Source: AFP

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Friday, April 25, 2008

Prague Will Host V4 Meeting With Ukraine, Sweden

PRAGUE, Czech Republic -- A meeting of the foreign ministers of the Visegrad Group countries (the Czech Republic, Slovakia, Hungary and Poland) will take place in Prague next week with the participation of their counterparts from Sweden and Ukraine who were invited as guests, the Czech Foreign Ministry press department told CTK Thursday.

V4 Visegrad Group countries

The ministers will discuss regional cooperation between the EU and east European countries.

"The future of the EU and its neighbouring countries will be the main topic and an emphasis will be put on the current situation in Ukraine, Serbia and Belarus," the ministry said.

The independence of Kosovo will probably also be one of the questions on the agenda since there is no united view on the recognition of its independence even among the V4 countries.

While Poland and Hungary have recognised the independent Kosovo, Slovakia is against the recognition. The Czech Republic has adopted the wait-and-see position but tend to recognising the new Kosovo.

The politicians will probably also discuss the EU rotating presidency. Prague will take the EU presidency in the first half of next year, followed by Sweden. The two countries are coordinating their priorities and the preparation, along with France that will hold the EU presidency six months ahead of the Czech Republic.

The representatives of the V4 countries, Ukraine and Sweden will also talk about the results of the recent NATO summit in Bucharest. Ukraine hoped that the Alliance would invite it to join NATO's Membership Action Plan (MAP) at the summit, which is a step towards the admission in the Alliance.

This did not happen because Germany and France were opposed to it mainly for the fear, as is generally believed, not to unnecessarily irritate Russia.

The NATO representatives, however, have made it clear to Ukraine and Georgia that they could count with NATO membership in the future.

Bilateral meetings between the individual countries' foreign ministers can be expected to take place during the Prague meeting.

The Declaration on cooperation on the path to European integration was signed between the former Czechoslovakia, Hungary and Poland in the Hungarian town of Visegrad in 1991.

After Czechoslovakia's division in 1993 the Visegrad Three has turned into the Visegrad Four.

Many meetings of the V4 presidents, prime ministers, ministers and chief of staffs as well as consultations of the four countries' supreme courts have taken place since then.

The cooperation stagnated in the mid-1990s and only in 1998 the countries' prime ministers agreed to renew it, which happened at a summit in Bratislava in 1999.

Source: Prague Daily Monitor

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”Miss Ukraine” Crowned In Kiev

KIEV, Ukraine -- Iryna Zhuravska, 18, won the "Miss Ukraine" beauty contest in Kiev April 23, 2008. She is related to the Deputy Mayor of Kiev.

Iryna Zhuravska, 18, adjusts her crown after winning the "Miss Ukraine" beauty contest in Kiev April 23, 2008. Twenty-six girls from all over Ukraine took part in the contest.

The winner received a US $500 thousand crown.

Overall, twenty-six girls from all over Ukraine competed in the contest, which was held in Ukraine Palace in Kiev on Wednesday, April 23.

The jury included Olena Franchuk, daughter of ex-president of Ukraine Leonid Kuchma, Russian singer Natalia Korolyova, and Miss World 2007 Zhang Zilin (China).

Miss Ukraine 2008 was born in 1990. She also has the titles of Miss Internet and Vice-Miss Donbass Open, 2007.

Iryna works as a model in the KARIN MMG agency, belonging to Ukrainian model Vlada Lytovchenko, who was crowned Miss Ukraine in 1995.

Source: UNIAN

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Thursday, April 24, 2008

Back In The USSR: McCartney To Play One-Off Ukraine Gig

LONDON, England -- Former Beatle Paul McCartney said Thursday he will perform at a free concert in Ukraine in June.

Former Beatle Paul McCartney

The show will take place in Kiev's Independence Square on June 14 and has been organised by billionaire businessman Victor Pinchuk.

"Me and the band are going to be there and we're going to have to a great evening," McCartney said in a statement issued by his publishers MPL and the Victor Pinchuk Foundation.

"It's going to be [a] great evening hopefully for the Ukraine."

The event is being branded as a chance for people from different backgrounds "to come together around the ideas of peace, love and unity".

Source: AFP

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Wednesday, April 23, 2008

Nuclear Waste Storage Inaugurated In Chernobyl

KIEV, Ukraine -- Ukraine's President Viktor Yushchenko Wednesday inaugurated a nuclear waste storage and processing centre in the contaminated zone around the Chernobyl nuclear station ahead of the catastrophe's 22nd anniversary, his press service said.

President of Ukraine Viktor Yushchenko (L) looks at a monitor on the control panel during his visit to Chernobyl's Nuclear Power Plant during the unloading of the last fuel cell from the 3rd power reactor. Yushchenko Wednesday inaugurated a nuclear waste storage and processing centre in the contaminated zone around the Chernobyl nuclear station ahead of the catastrophe's 22nd anniversary.

The centre's first module, constructed with the European Commission's aid, would be launched by the end of the year, Valentin Melnichenko, a project official, told AFP.

He said it would be able to store up to 75,000 cubic meters of nuclear waste from Chernobyl and its surrounds.

The entire complex, which is due to be completed in "five to 10 years," will also allow storage and processing of radioactive waste from four nuclear power stations currently operational in Ukraine, he added.

No storage of foreign nuclear waste is planned, assured Melnichenko, deputy director of the Ukrainian company Technocenter which had constructed the complex.

On April 26, 1986, reactor number 4 at Chernobyl nuclear power plant exploded, contaminating large parts of Europe but especially the then-Soviet republics of Ukraine, Belarus and Russia.

Over 25,000 "liquidators" who worked on the ruined reactor and constructed a concrete sarcophagus enclosing it, lost their lives, according to official figures.

The station, whose last reactor continued to produce electricity, was closed down in December 2000.

On Wednesday, Chernobyl's director Igor Gramotkin announced the completion of works reinforcing the old sarcophagus which was built in the immediate aftermath of the accident to confine radioactive leaks.

The sarcophagus, which had become a constant menace due to cracks, would now be able to hold against an earthquake of 6.0 on the Richter scale, Gramotkin was quoted as saying by the Interfax news agency.

A consortium including France's Bouygues and Vinci construction companies meanwhile launched preparations for the construction of a new steel dome over the old sarcophagus, the Interfax said.

Source: AFP

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VIEW: NATO’s Dangerous Signals

BRUSSELS, Belgium -- NATO is supposed to be a beacon for countries struggling to establish democracy and freedom. The Bucharest summit suggests that the beacon has been switched off.


Two dangerous signals were sent from NATO’s Bucharest summit. The first was that Russia has re-established a “sphere of interest” in Europe, where countries are no longer allowed to pursue their own goals without Moscow accepting them. The other was that all NATO member states are free to blackmail their partners into supporting their own narrow goals.

The first signal was sent when Ukraine and Georgia were denied the “Membership Action Plan” (MAP) that they sought. Several European heavyweights, led by Germany and France, said no, despite strong support for the idea from the United States.

The second signal was sent when Greece successfully vetoed membership for Macedonia, a move that reflected the two countries’ unresolved conflict over Macedonia’s name (which Greece insists must be Former Yugoslav Republic Of Macedonia — FYROM — one of the most disgraceful acronyms harassing international politics today).

The dispute with Macedonia goes back to the early 1990s, when Yugoslavia collapsed into independent states. Greece vehemently opposed its tiny northern neighbour — with only two million inhabitants — using the name Macedonia and symbols from the days of Alexander the Great in its flag and crest.

Macedonia at one point agreed to design a new flag and remove the symbols, as well as to amend its constitution to clarify that it had no territorial claims on Greece, but it flatly refused to live under one of the tongue-twisting names suggested by its bigger neighbour.

So there you are: a Greek veto on Macedonia’s national aspirations until it has chosen a name that does not make the Greeks shiver in fear of aggression from the north.

It sounds ridiculous, but there is another, often overlooked, aspect to the dispute: by behaving as it has, Greece is demonstrating a lack of confidence in its NATO partners.

With Macedonia in NATO, any adventurous policy that undermined regional stability would certainly be stopped in its tracks. If the Greeks cannot see that, their partners must let them know that there is a price for their obstructive behaviour.

The problem with Ukraine and Georgia is far more serious.

In a sense, Russia has behaved like Greece in claiming that NATO enlargement threatens its security. That is nonsense, and Russia knows it.

But the Kremlin has found that behaving like a spoiled child gets results: the right to influence developments in ex-Soviet countries.

In other words, Russia is being allowed to re-assert its “sphere of influence” — a concept that should have been superseded by that of “Europe Whole and Free”, which the entire European Union appeared to have embraced when Communism collapsed. But no: 1989 was not the end of history. History threatens to return.

European opponents of a MAP for Ukraine and Georgia argue that neither country is ready for NATO membership. Too many question marks about their national unity are said to exist, too many internal conflicts linger, and their records on political and judicial reforms are supposedly dubious.

But the MAP process does not imply an automatic right to NATO membership. On the contrary, MAPs would put heavy demands on Ukraine and Georgia. Both would have to answer a lot of difficult questions and convince others that they are able to live up to NATO’s democratic requirements before being allowed to join.

Therefore, it would also be in Russia’s interest to see such a process started. Russia has valid concerns regarding the huge Russian-speaking minorities in both countries, and these concerns are best dealt within the framework of the MAP process, where the Organisation for Security and Cooperation in Europe’s very strict rules on treatment of minorities provide the benchmark.

Indeed, the MAP process ensured protections for Russian minorities in Estonia, Latvia, and Lithuania — all ex-Soviet republics that are now NATO members.

The crux of the matter is Europe’s lack of political will to forge a unified stand toward Russia. This has led Russia to pursue a classic “divide and rule” strategy by tempting some big European countries into bilateral agreements — particularly on energy issues — that preclude a common EU position.

This is sad — both for Russia and Europeans — because it strengthens the hand of those in Moscow who want to pursue a policy of national pride rather than national interest, and it weakens the possibilities of establishing a real common European foreign and security policy.

But it is saddest for the countries that are once again being left out in the cold.

Source: Daily Times

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Tuesday, April 22, 2008

The Tug-Of-War

MOSCOW, Russia -- The protracted conflict between Ukraine’s President Viktor Yushchenko and Prime Minister Yulia Tymoshenko has proceeded to a new stage.

President Viktor Yushchenko and Prime Minister Yulia Tymoshenko in better days.

Ukraine’s main democrats proposed two mutually exclusive models of the country’s political structure: Mr Yushchenko lobbies for the presidential form of government, whereas Ms Tymoshenko promotes the parliamentary republic.

The ideological contradictions of the leaders of the “Orange team” are a sign of their final breakup.

What Man Wants

Yesterday the workgroup of the National Constitutional Council, established last year by a decree of the head of state, convened at the Secretariat of President Yushchenko, Kiev.

Five months ago Mr Yushchenko charged the body with drafting a new variant of the Constitution. Yesterday the Council, supervised by Marina Stavniychuk, Deputy Head of the Presidential Secretariat, delivered the results of its lawmaking routine.

According to the Communist Georgy Kryuchkov, member of the workgroup, “the final variant of the conception of the new Constitution” was settled at the meeting.

The document was scheduled to be publicly announced tomorrow. Mr Kryuchkov refused to give Kommersant any details of the approved conception.

As far back as February, when Mr Yushchenko presided over the first convention of the Council, consisting of some hundred experts, lawyers and politicians, it was clear that he was going to alter the Constitution so that his powers could be extended to the maximum.

“It is vital to secure the status of the President elected nation-wide as the guarantor of the Constitution, state sovereignty and territorial integrity,” Mr Yushchenko instructed the Council members.

Judging from the information Georgy Kryuchkov shared with Kommersant, it can be concluded that on the whole the Council followed the aspirations of Viktor Yushchenko.

Anyway, it is considered that Ukraine can adopt the French form of government, with a powerful President being the head of state.

“Different views were articulated: from keeping the current system to switching to the French system of prefects, so that the representatives of the President in certain areas could oversee the fulfillment of laws and the observation of the rights of citizens,” Mr Kryuchkov said.

According to him, the powers of the Cabinet of Ministers were discussed as well. “There is a kind of ambiguity in the structure of the government. Some ministers are appointed on the recommendation of the Prime Minister, and two (the Foreign Minister and the Defense Minister) are appointed by the President. Everyone agreed that there is no return to the failed ambiguity of the government.”

The members of the workgroup unanimously agreed that the President must be in charge of the country’s foreign and defense policy, personally appoint the supreme command of the armed forces and other military entities.

“There is an obvious need for change now. The powers must be so balanced that the rules of play were clear to everyone,” Nikolay Poludenny, Advisor to Mr Yushchenko, explained to Kommersant, “I believe that for such kind of society as ours the presidential republic is the preferred form government. Our elites are not ready for anything else yet.”

The key concepts of the new, presidential draft of the Constitution will take shape after the whole Council considers them.

What Woman Wants

At first it seemed that the Prime Minister would simply watch the presidential team preparing amendments to the Constitution, but then it got evident that the Yulia Tymoshenko Bloc was bracing itself for a counterattack against the President.

Ms Tymoshenko did her best to announce her ideas to the whole world. She chose the tribune of the Parliamentary Assembly of the Council of Europe (PACE) to be the base of her attack.

Last Wednesday, speaking at the regular session of the PACE in Strasbourg, Yulia Tymoshenko suddenly declared that Ukraine must alter its Constitution so that it complied with the principles of the Council of Europe.

“We must separate powers, making Ukraine a traditional parliamentary republic, characteristic of European states. This model has advantage over any other monopolized form of government,” stated the Ukrainian Premier, with the PACE delegates welcoming the idea with a storm of applause.

Last Sunday Ms Tymoshenko made it clear which model she would like to see adopted. “In my opinion, with the parliamentary republic, order will be established, just like in Germany. At that, the post of the President will remain, as well as the nation-wide election,” said the Prime Minister in her interview to one of the Ukrainian channels.

She expressed her confidence that the team of Mr Yushchenko would support the idea. “I’m sure that we are a team working our way together. I’m sure, by the way, that the whole democratic coalition will vote for the amendments to the Constitution.”

It’s up to the Rada

Ms Tymoshenko’s reconciliatory statements that the Orange team should share her ideas can be regarded mere rhetoric. The bickering between the President and the Prime Minister concerning the right to alter the Ukrainian Constitution the way he/she wants points to a true fissure between the former allies.

Their disputes used to touch upon economic policy: the privatization of enterprises, the return of deposits with the former Sberbank of the USSR to the people, gas supplies from Russia and the payment for it.

The present conflict is mainly ideological, with the parties giving to understand that no compromise is possible.

From the outset Viktor Yushchenko stated that his draft of the Constitution must be approved of at a nation-wide referendum, promising to hold one by the end of this year, that is before the next presidential election 2009.

Mr Yushchenko appealed to the Constitutional Court to get the permission to prepare and hold this plebiscite. But the plans of the head of state dashed as last Friday the Court announced its verdict.

According to it, the Verkhovna Rada must determine the procedure, by means of amending the Constitution and the Law on Referendum. This said, to fulfil his plan, the President is to get the support of 300 lawmakers at least, which he does lack: the parliamentary faction of the pro-presidential Our Ukraine–People’s Self-Defense Bloc has only 72 mandates out of 450.

In her turn, Yulia Tymoshenko is much better prepared for delivering her draft of the Constitution. The amendments to the Constitution still being processed, the Yulia Tymoshenko Bloc has already secured the support of its eternal rival – Viktor Yanukovych’s Party of Regions.

“A wide spectrum of political forces are working out the Yulia Tymoshenko Bloc project. She can reckon with the support of the Party of Regions, the Communist Party, and, of course, her own bloc. And maybe, a large part of the Our Ukraine,” Alexey Sitnikov, Russian spin-doctor providing consulting services to Ms Tymoshenko, told Kommersant.

Member of the Party of Regions, Yelena Lukash partly confirmed the fact that Viktor Yanukovych’s adherents are eager to forget the past squabbles and play up to Ms Tymoshenko, “At the Saturday party congress we unequivocally supported the parliamentary-presidential form of government.”

So, account taken of Friday’s verdict of the Constitutional Court, the draft of the Constitution by the Yulia Tymoshenko Bloc is bound for success when it comes to the voting in the Rada, since, taken together, the Yulia Tymoshenko Bloc and the Party of Regions have 331 votes in the Rada.

That’s why Yulia Tymoshenko may consider herself the winner, ”I’m sure that after the Easter holidays the Parliament will convene and pass the amendments to the Constitution, which the country needs more than any other sort of reform.”

Still, Viktor Yushchenko can frustrate his rival. Just like a year ago, he can dissolve the Rada and announce early elections, explaining his step with the evasive wording: “The activity of the lawmakers no more complies with the spirit of the Constitution.”

Source: Kommersant

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Ukraine Complained Of Russia To U.N.

MOSCOW, Russia -- A complaint of Ukrainian Foreign Ministry reached the U.N. headquarters and was given the status of official document of the U.N. General Assembly, according to the U.N. web.

A woman passes by a banner near the French embassy in Kiev. A demonstration in support of Ukraine's membership in NATO took place in front of the French and German embassies in the capital Kiev.

The complaint is against Russia, of course.

The document draws attention to the recent statements of Russia’s officials questioning territorial integrity of Ukraine and directly interfering into domestic affairs of the country.

No definite names are given for some reason.

Official Kiev demands that Russia drops the practice of threatening Ukraine and emphasizes that the progress in relations of two countries proves that Ukraine has made the right choice when staking on the NATO integration.

On April 10, Ukrainian Foreign Ministry submitted a note of protest to its Russia’s counterpart in response to the statement made by Vladimir Putin in time of the NATO-Russia’s summit.

In his conversation with U.S. President George Bush, Putin said that Ukraine was not even a state, as a part of its territory is Eastern Europe and a sizeable portion has been presented by Russia.

On the next day after that statement, Russia’s Foreign Minister Sergei Lavrov pledged that Moscow would spare no efforts to prevent Ukraine and Georgia from joining the NATO.

Source: Kommersant

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Monday, April 21, 2008

Ukrainian PM Yulia Timoshenko Disregards President Viktor Yushchenko Ban On Privatisation

KIEV, Ukraine -- Ukrainian Prime Minister Yulia Timoshenko is going to put into effect the privatisation of a number of facilities, “disregarding the presidential decree,” after President Viktor Yushchenko banned their privatisation. Timoshenko said so in an interview with Kiev-based ICTV TV Channel.

Yulia Timoshenko

“I can tell you that those senseless decrees will not change anything. I think the privatisation of those facilities will take place within the time limits set by the government, because all those decrees are just illegal,” Timoshenko stressed.

In her opinion, privatisation is being suspended for the purpose of disrupting the holding of a European football championship in Ukraine in 2012 and the payment of bank deposits to former clients of the USSR Sberbank (Savings Bank).

According to her information, 20 companies have been registered already for taking part in the privatisation of the Odessa Port Factory. She believes this is evidence of “the highest mark given to the preparation of the facility for privatisation.”

The day before Alexander Turchinov, first vice premier of Ukraine, also criticised Yushchenko’s stand on the privatisation of the Odessa Port Factory. “In my opinion, this is an especially aggressive provocation against the government and against Ukraine,” he said.

In his opinion, Yushchenko’s stand on the problem is “non-constructive.” Yushchenko believes the Odessa Port Factory should be privatised, but without the pipeline and the transhipment capacities of the Yuzhny Port. “The transport facilities should remain under the monopoly control of the state,” Yushchenko said during his visit to Odessa.

Yushchenko issued a decree on April 15, which suspended the resolution of the Timoshenko government, dated February 11, on the terms of the auction for the sale of the 99.52-per-cent package of shares of the Odessa Port Factory.

The starting price of the package, to be put up for sale at the auction, is three billion grivnas (some 600 million dollars). The auction was to be held 75 days after the publication of the announcement.

The Odessa Port Factory is the second biggest producer of ammonia and carbamide, and the third biggest producer of nitrogen fertilizers in Ukraine.

It specialises on the transhipment of chemicals coming from the CIS member countries for export. The Odessa Port Factory holds the monopoly on the interstate market of specialised services for the reception, cooling and transhipment of ammonia.

During the past three years some 88 per cent of the Factory’s produce has been going for export. Ammonia has been exported to Belgium, the United States and France, and carbamide – to Switzerland, Belgium, the United States and Germany. The charter capital of the Factory is 798,544,000 grivnas.

Source: ITAR-Tass

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Rogozin Stays On Message In Brussels

BRUSSELS, Belgium -- He was once a firebrand nationalist politician who led rallies against illegal immigration, met indicted Serbian war criminals and ran a campaign ad that seemed to compare dark-skinned southerners to garbage.

Planting Dmitry Rogozin into the very heart of NATO bloc was a revolutionary appointment idea.

Now, Dmitry Rogozin lives in a brick house located in a quiet, leafy neighborhood of Brussels. Inside, only a Russian flag, a picture of St. Basil's Cathedral and some snapshots of Rogozin with world leaders suggest that it is the official residence of Russia's envoy to NATO.

Since taking the post in January, Rogozin has brought his bombastic style from the streets of Moscow to the corridors of NATO, where he has made headlines and provoked controversy with his criticism of the alliance.

"I express the viewpoint of my country," he said in a recent interview at his residence in the Belgian capital. "I am a thermometer that reflects the emotional level of Russia's reaction to steps taken by NATO, among other things."

The temperature of Russia-NATO relations has been rather hot lately, as Moscow has pushed back furiously at NATO proposals to admit Ukraine and Georgia into the alliance and to support building elements of a U.S. missile shield in Central Europe.

Despite assurances from U.S. President George W. Bush and other Western leaders, President Vladimir Putin has called the missile shield dangerous for Russian security and threatened to target missiles at Ukraine if NATO installations ever appeared there.

Against this backdrop, Putin made his surprise appointment of Rogozin, who rose to prominence as a leader of the nationalist Rodina party, as Russia's permanent representative to NATO.

In Brussels, some argue that Rogozin is not much of a diplomat. They see him more as a blunt instrument designed to convey Russia's stance as loudly as possible to the West.

"Clearly, he is not a person who is trying to find some solution to harmonize," said Rihard Piks, a former Latvian foreign minister who now represents Latvia in the European Parliament.

Piks, who said he knew Rogozin from his days on the State Duma's foreign relations committee, called him a "nationalistic and arrogant politician" with an aptitude for stirring up controversy.

"From my experience, Mr. Rogozin sometimes does not know very much what he is speaking about," Piks said. "His main aim is to make some noise, to surprise the people around him and to win attention."

Rogozin defends his style and insists that it is the correct response to the challenges he sees facing Russia.

"Diplomats who hide the meaning of their words are bad diplomats," he said. "I had one acquaintance, a Russian diplomat, who could speak for two hours and not say anything. He thought this was super, that it was a sort of mastery. But I considered him an idiot."

The reason he needs to be blunt, Rogozin said, is that NATO expansion and missile defense pose a clear and present danger to Russia. The envoy dismissed suggestions that Moscow itself was being the aggressor by meddling in the affairs of its Soviet-era dominions.

"Any of our objections, any of our occasionally emotional outbursts, are seen as signs of aggression," Rogozin said. "But who are the real aggressors here? They are the ones building new military bases, the ones moving ever closer to our borders, the ones digging foundation pits for rocket bases near our defensive perimeter."

A NATO official denied that the alliance's expansion posed a threat to Russia. "That's something that we don't agree with at all," he said, speaking on condition of anonymity because he was not authorized to comment.

The official linked NATO expansion to the spread of democratic values and downplayed the military aspect of the alliance.

"If you were to look very carefully at the actual effect of enlargement," he said, "you have, first, an enlarged area of predictability and transparency, and second, you're talking about countries which are in the process of ensuring the highest standards which NATO expects. And military standards are just one part of this."

Rogozin does not buy that argument.

"Imagine if the Warsaw Pact were alive today," he said, "and we were telling Bush that the entry of Venezuela and Panama did not pose a threat to America, but was simply an expansion of our democratic alliance. It would be interesting to see how Washington would react to such rhetoric from our side."

Earlier this month, Moscow appeared to win a skirmish in the ongoing struggle when NATO decided not to offer Membership Action Plans — the concrete steps needed for admission — to Ukraine and Georgia.

But the compromise deal reached at the NATO summit in Bucharest, Romania, affirmed that the two countries would eventually join the alliance.

For Rogozin, this means he still has work to do.

"In Bucharest, they once again confirmed that it would be good to swallow up Ukraine and Georgia," he said. "Their appetite is excellent, which is something they can be complemented on. My only concern is that, from the viewpoint of NATO's external appearance, it resembles those people who eat too much at McDonald's."

Though some may call him an unyielding hard-liner, Rogozin said he wanted to be constructive and find areas where Russia and NATO can cooperate.

In the interview, he repeatedly mentioned an agreement signed in Bucharest allowing the alliance to ship supplies across Russia to forces in Afghanistan. Other potential areas of cooperation, Rogozin said, are the fight against radical Islamic groups like the Taliban and international drug trafficking.

"NATO seems to understand that the main threat to it today comes from the south, but it continues expanding to the east," he said.

This is not the first time that Rogozin has sought to win people over by emphasizing a threat from the south.

Illegal immigration from the Caucasus and Central Asia was one of Rogozin's signature issues during his decade-long career in the State Duma. In 2005, he was accused of racism after appearing in a Rodina campaign ad that showed dark-skinned immigrants tossing watermelon rinds on the ground. The television commercial showed Rogozin chastising them and ended with words "Let's clear the city of garbage."

The Moscow City Court ruled that the ad incited ethnic hatred. Rogozin called the ruling politically motivated and denied that the term "garbage" was supposed to refer to the immigrants.

In 1996, before he was first elected to the State Duma, Rogozin met with Bosnian Serb Army leader Ratko Mladic, who had been indicted in The Hague on charges of genocide and crimes against humanity. Rogozin has also spoken at ultranationalist rallies in Moscow where demonstrators displayed Nazi and anti-Semitic signs, although he has denied holding racist beliefs himself.

Perhaps the peak of Rogozin's career came in December 2003, when his Rodina party won 9 percent of the vote in the Duma election. Rodina, which means "motherland," had been cobbled together a few months earlier and was widely seen as a Kremlin project to steal votes from the Communists.

Rogozin's relationship with the Kremlin quickly soured, however, and after the court ruling against his "garbage" commercial, Rodina was barred from the 2005 Moscow City Duma elections.

In 2006, Rogozin resigned as the party's leader, citing heavy Kremlin pressure, and was replaced with a more compliant, less charismatic leader, businessman Alexander Babakov. Last year, Rogozin attempted to start a new nationalist party, Great Russia, but its registration was denied on technical grounds.

While conceding that he disagreed with the Kremlin on some aspects of domestic policy, Rogozin stressed that he saw eye to eye with Putin on international affairs, especially since the shift toward a more muscular foreign policy in the second half of Putin's presidency.

"I was interested in helping my president defend the nation's interests," Rogozin said. "And the president was probably interested in having adequate people who were up to the task."

Rogozin added that he was no stranger to diplomacy, having led the Duma's foreign relations committee for four years.

Though some may find it hard to square with his reputation, Rogozin's resume is highly cosmopolitan. He graduated from the international department of the Moscow State University journalism school, and he speaks English, Spanish, Italian and French, according to the biography on his web site.

News of Rogozin's appointment broke late last year. Putin was expected to sign the decree sending him to Brussels in December, but the decree only came in January, and the delay caused some speculation.

Expressing satisfaction with his new job, Rogozin said it was nice to be working with the Kremlin again after his efforts to lead an opposition party.

"The problem of being in the opposition is that it's always a passive role," he said. "You end up as a critic of everything taking place in your country, and you don't participate in the formation of government policy.

"This is okay if your country is stable and perfectly safe, if your country is a well-fed Western democracy. Then it might even be preferable to having real responsibility.

"But if you care about the fate of your country — and I care what happens to Russia — and you know what needs to be changed, then you can't remain in the opposition. You need to strive for self-realization within the system.

Source: Moscow Times

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Sunday, April 20, 2008

Speaker Of Poland's Parliament Urges EU To Look Eastwards

BERLIN, Germany -- The European Union should look eastwards, enhancing contacts with Ukraine and promoting the democratization of Belarus, the speaker of the Polish parliament said Sunday during a visit to Berlin.

Speaker of Polish Parliament Sejm Marshal Bronislaw Komorowski

Sejm Marshal Bronislaw Komorowski said the thrust of Polish foreign policy was to promote the modernization and democratization of Ukraine "following the Western example."

"The point is to bind the country into NATO and the EU," he said, adding that Poland as a country was recovering from decades under communist rule like Ukraine, and had a lot to offer in this regard.

Germany was the EU country that could most easily share Poland's aim of a common new "Ostpolitik," Komorowski said in an interview with Das Parlament, an official publication issued by the German Bundestag.

He criticized the fact that 70 per cent of EU funding for enhancing links with its neighbours was dedicated to countries south of the bloc.

"We are fighting for more funding for neighbourhood policies with Ukraine and other countries east of the EU," he said.

Poland also sought good relations between the EU and Russia,Komorowski said, while also reiterating Poland's strongly critical attitude towards the Nord Stream gas pipeline planned to link Russia and Germany under the Baltic Sea, bypassing Poland.

Komorowski said the fact that the Baltic pipeline was considerably more expensive than an overland alternative showed that the decision to build it had been politically rather than economically motivated.

The Sejm marshal called for a united EU energy policy with regard to Russia.

The liberalization of the energy market, the influence of energy concerns on political decision-making and the diversification of energy sources were the core issues, he said.

But Komorowski said no preconditions should be set on Russia, such as compelling Moscow to ratify the EU Energy Charter regulating trade, transport and investment in the sector. Moscow has declined to ratify the treaty, signed in Lisbon in 1994.

Regarding the planned controversial stationing of elements of a US missile shield in Poland and the Czech Republic, Komorowski said he believed the shield should be a general NATO project, protecting all European capitals.

Source: DPA

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Can The Ukrainian Coalition Hold Together?

KIEV, Ukraine -- The ruling coalition of Prime Minister Yulia Tymoshenko’s Bloc (BYT) and President Viktor Yushchenko’s Our Ukraine, People’s Self-Defense (NUNS), is on the verge of breaking apart.

Prime Minister Yulia Tymoshenko

Yushchenko’s team not only criticizes Tymoshenko’s economic policy but also publicly accuses her of fostering corruption.

Tymoshenko, for her part, has been torpedoing Yushchenko’s efforts to strengthen the presidential rule.

The situation is similar to the crisis of September 2005, when Yushchenko fired Tymoshenko from the post of prime minister, but there is one fundamental difference.

In line with the constitutional amendments that came into force 2006, the president cannot dismiss the prime minister. This is within the jurisdiction of parliament, where Yushchenko is very far from commanding a majority.

The Tymoshenko government has increased social spending, and it plans to use privatization proceedings in order to keep Tymoshenko’s election promise to repay savings in the defunct Soviet State Savings Bank through the Ukrainian state savings bank, Oshchadbank.

Yushchenko’s team maintains that this policy is populist and will unbalance the economy, but this policy increases Tymoshenko’s popularity ahead of next year’s presidential election race in which she is expected to challenge Yushchenko.

Opinion polls conducted in March and April showed that 23 to 25 percent of Ukrainians are ready to vote for Tymoshenko in a presidential election, while support for Yushchenko is under 10%.

Yushchenko has urged Tymoshenko to amend the 2008 state budget as it was based on the expectation that inflation would be around 10 percent annually, but it reached 9.7% just in period from January to March.

Tymoshenko said that she saw no point in amending the budget for the time being. On March 19 the Tymoshenko cabinet ruled to privatize four regional power generating companies. Yushchenko’s secretariat warned that the decision could lead to the bankruptcy of the state-run Energy Company of Ukraine which manages the four companies.

Tymoshenko ignored the warning, and Yushchenko issued a decree on April 11 canceling the privatization decision, saying that it “threatened the state’s economic security.”

Yushchenko accused Tymoshenko on March 28 of failing to settle the debt for Russian gas. He estimated the debt to Gazprom at $2 billion, and warned Tymoshenko of an imminent “gas war.” Tymoshenko calmly replied that the debt was lower, at some $900 million, and she pledged to continue talks with Russia.

Yushchenko and Tymoshenko also disagreed over the early mayoral election in Kyiv. Yushchenko was against the election, but in March parliament backed Tymoshenko, scheduling the election for the end of May.

Yushchenko suggested fielding a single candidate from the coalition, but Tymoshenko refused, unilaterally nominating her right-hand man, First Deputy Prime Minister Oleksandr Turchynov.

Yushchenko’s team moved to strong statements in April, essentially burning their bridges. On April 10 Yushchenko’s office head Viktor Baloha accused Tymoshenko of “creating a large-scale land trade scam” by setting up a single body to conduct land auctions across Ukraine.

Baloha alleged that Tymoshenko wanted to install a friend of Bohdan Hubsky, “BYT’s notorious landowner,” at the helm of the body. He suggested that Tymoshenko “simply wants to head this mafia.”

Tymoshenko rejected the accusations, saying that the body was needed in order to ensure transparency in land auctions.

Yushchenko accused Tymoshenko on April 3 of betraying the coalition by hiring people who had served the old regime. He named Viktor Medvedchuk, who managed the office of Yushchenko’s predecessor Leonid Kuchma, and Oleksandr Zadorozhny, who was Kuchma’s representative in parliament.

Zadorozhny advises Tymoshenko on constitutional matters, while Medvedchuk, Yushchenko’s secretariat claimed, drafts a new constitution for her.

Yushchenko suspects that Tymoshenko joined forces with the team of Medvedchuk and the opposition Party of Regions (PRU) in order to block his plan to reverse the 2004-2006 constitutional reform.

Yushchenko wants to restore strong presidential powers. Tymoshenko, however, has signaled that her party is in favor of a parliamentary form of government. The PRU and the BYT have agreed to set up a commission in parliament in order to draft constitutional amendments.

On April 14 United Center (YeTs), a small party linked to Baloha, issued a statement accusing the BYT of conspiring with the PRU to provoke an early parliamentary election. Yushchenko’s legal advisor, Ihor Pukshyn, accused BYT on the same day of political corruption.

He quoted unnamed BYT deputies as alleging that positions on the BYT list for the 2007 early parliament election were sold “for millions of dollars.”

From April 12 to 14 the teams of Yushchenko and Tymoshenko exchanged strong statements, accusing each other of conspiring to break up the coalition. On April 14 the leading members of the two parties gathered for an urgent meeting to find ways to save the coalition.

NUNS representatives insisted that the BYT should stop its joint work with the PRU on a constitutional commission. BYT insisted that Yushchenko should fire Baloha.

BYT backed down on April 15, saying that it was suspending the plan to set up the constitutional commission. Baloha on April 15 urged dismissal of the ministers of finance and economy. He blamed them for high inflation. Both represent BYT in the Cabinet.

Source: Eurasia Daily Monitor

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Saturday, April 19, 2008

Harvard Law (Movie) Review: Orange Revolution

BOSTON, MA -- The common perception of Ukraine four years ago was that it was one of the many former Soviet bloc nations racked by corruption and ruled by an oligarchy of billionaires.

Poster from the movie "Orange Revolution".

Today many see it as a democratic nation struggling to escape from the influence of Russia and its state-owned energy giant Gazprom.

Although the nation continues to be dominated by corrupt and wealthy interests and the people remain sharply divided in their international allegiances, Ukraine has become an icon of democratic change since the events now known as the Orange Revolution.

During November and December of 2004 hundreds of thousands of Ukrainians protested the falsification of the nation's presidential election results through round-the-clock protests on the central streets of Kyiv, the nation's capital.

Ukraine's national political identity was quickly transformed by these non-violent protests which were organized by the "orange" Our Ukraine party.

The leader of the party, presidential candidate Viktor Yushchenko, led the protests with a stoic demeanor despite an attempt on his life by dioxin poisoning which caused him horrible pain and disfigurement.

Ultimately the Supreme Court of Ukraine ordered a new round of voting, following which Yushchenko became president.

Director Steve York's latest documentary, Orange Revolution, provides an inspiring visual record of how the events in Ukraine unfolded during late 2004.

York has produced documentaries on topics ranging from American history to the Palestinian West Bank, and he has recently received critical acclaim for his exploration of non-violent political movements in the films A Force More Powerful and Bringing Down a Dictator.

York says, "When we saw during the summer of 2004 what was going on [in Ukraine] and we saw the Yushchenko poisoning . . . we began to pay very close attention."

He and his team arrived in time to capture the scene in full detail, and the product is a compelling story of how a national political crisis was resolved through peaceful demonstrations.

The Harvard Program On Negotiation presented the film as a part of the PON film series, which has featured both of York's previous films on non-violent conflict.

The version screened is currently being edited for broadcast on PBS later this year.

Orange Revolution begins with a fast-paced journey from the campaign trail to the corrupt election and then follows the daily progress of the mass demonstrations on the streets of Kyiv.

York skillfully weaves together the many threads that are critical to understanding the politics and pressures which culminated in the falsification and then reversal of the election results, telling the story with footage of the campaign mixed with interviews of party organizers and journalists.

All the players in the drama are shown as they were, and the only voice-overs come from Ukrainians who were first-hand participants or reporters, not the director.

In the campaigning before the election, Our Ukraine candidate Viktor Yushchenko is shown eating watermelon with villagers, shaking the hands of supporters, and speaking against the Kuchma regime and its corruption.

Yushchenko's rival, prime minister Viktor Yanukovich, is shown to be the regime's chosen successor, standing with President Leonid Kuchma and political ally, Vladimir Putin.

The pace and intensity of the film are elevated by lively scenes of demonstrators living in the tent city in Independence Square, Ukrainian pop stars Oleh Skrypka of VV and Svyatoslav Vakarchuk of Okean Elzy singing to huge crowds, and the impassioned Yulia Tymoshchenko, an ally of Yushchenko, inciting the people of Ukraine to take to the streets.

Top officials in Yushchenko's party and the Ukrainian government recount how they mobilized the people, convinced the police to cooperate, and avoided violent clashes with the military and riot police through private negotiations with top military officers.

The tension is palpable as the Supreme Court takes testimony while protesters continue to crowd the streets and surround government buildings.

Steve York says, "My job is primarily to document events, and I leave it to others to find the deeper meaning."

It is refreshing that York refrains from assaulting his audience with a message, and instead, he has embedded his theory of non-violent social movements in a factual presentation of the events.

After the screening, York explained that he believes all successful non-violent movements are characterized by three common elements: unity, organization, and non-violent discipline.

Orange Revolution demonstrates that the success of the movement depended on popular disgust with the corruption of the ruling Kuchma government, careful logistical planning in advance by the Yushchenko campaign, and the insistence among all protest organizers that there be no violence.

Once the people were mobilized, the Yushchenko camp used political authority to ensure that Kuchma couldn't launch a violent attack without signing a written order.

Faced with the full responsibility for their actions, Kuchma and Yanukovich balked, and the negotiations which resulted provided the basis for subsequent electoral reforms and constitutional reduction of the president's powers.

The victory of Viktor Yushchenko and his Our Ukraine party was hailed worldwide as a victory for democracy and a step toward the West, but the three years since have seen the nation undergo chaotic political reversals along the same lines as were drawn during the Orange Revolution.

Some have criticized the movement as a failure, as the pro-Russian Party of the Regions and its leader, Viktor Yanukovich, have at times held a coalition in the parliament.

York responds, "The Orange Revolution should not be criticized for failure to achieve that which was not its goal."

The film's final scene, workers taking out the trash in Independence Square, emphasizes that the purpose of the movement was the narrow one of reversing election fraud and removing a corrupt president.

Although the nation continues to struggle with endemic corruption - the parliament recently called for snap elections for the Mayor of Kyiv following accusations he was involved in $3 billion in corrupt land deals - the country has taken significant steps forward in the development of democratic governance.

York points to four enduring legacies of the Orange Revolution: creation of a free press, election reforms which have provided three fair elections, enactment of constitutional reforms which created a healthier balance between the executive and legislative branches, and the awakening of a national political identity.

As the younger generation comes of age, that spark of a democratic consciousness is creating a Ukraine which is more closely tied to the Orange Revolution than its history as a Soviet Republic.

Whether that results in alignment toward the East or West remains the free choice of the people.

Source: The Record

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Did Western Spider Spin Orange Web?

MOSCOW, Russia -- A new book claims to have uncovered the inside story behind Ukraine's Orange Revolution. Written by several international analysts, it accuses the West of having masterminded coups in post-Soviet countries.

Orange Revolution

The book whose title translates as “Orange Webs” is the first publication from a brand new Russian NGO, the Institute of Democracy and Co-operation, which aims to challenge Western views of Russia.

Four years ago thousands poured into Kiev’s Independence Square. Amid claims that the presidential poll was rigged, they demanded victory for their man, Viktor Yushchenko.

Now, a book is out in Russian detailing how the so-called “colour revolutions” were plotted and financed by the West.

“The way they were executed, planned and depicted in the media has one and the same technology behind it,” said Natalya Narochnitskaya, the editor of “Orange Webs.”

Claims that Washington poured millions of dollars into Ukraine’s opposition have already hit the headlines.

“Orange Webs” is a step-by-step guide of the why’s and how’s of a coup d’etat - a process, it claims, that toppled Serbia’s Slobodan Milosevic, lifted Georgia’s Mikhail Saakashvili to power and fuelled Kiev’s rallies.

Analyst John Laughland believes that “to get Ukraine into NATO, you have to have a pro-NATO government installed in power. As the Americans say it’s not rocket science.”

The book points the finger of blame at a number of foreign NGOs. One in particular, the Committee of Voters of Ukraine, is accused of using American money to campaign against the pro-Russian candidate Viktor Yanukovich - allegations it strongly denies.

“The money we received from Western donors was allocated specifically for monitoring the election. After that we haven’t got a penny from anyone,” said Aleksandr Chernenko from the NGO.

Analysts also say many activists from the Ukrainian pro-Yushchenko youth movement ‘Pora’ were trained by members of similar groups in Serbia and Georgia. The movement’s leader, Vladislav Kaskiv, has slammed the claims as pure propaganda.

“The Russian government isn’t interested in democratic changes. That’s why they use information wars to discredit the very idea of change through democratic movement,” he said.

The change was seen by many as a step towards democracy, but for the authors of the book it was an unlawful process.

The authors say they’ve got facts and figures never before made public to prove their point.

“Orange Webs” is now set to hit the shelves. If history is written by the winners, this book tries to provide an alternative account of what drove the revolutions forward.

Source: RussiaToday

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Ukraine Draws Increasing Israeli Business Interest

KIEV, Ukraine -- Israeli entrepreneurs are planning to invest billions of dollars in Ukraine during the next several years, representing some of the nation’s largest foreign investment.

Israel’s wealthiest citizen Shari Arison

Global finance, infrastructure and real estate developer Arison Group, led by Israel’s wealthiest citizen Shari Arison, visited Kyiv in early April to explore investment opportunities, particularly those related to the EURO 2012 football championship.

Arison met with President Viktor Yushchenko at the Secretariat on April 2, after he visited Israel in November and invited a delegation of top Israeli entrepreneurs to visit Kyiv and consider investing in Ukraine.

“Generally, through its subsidiaries, the company will consider becoming involved in projects of the $100 million to $500 million scale,” Arison Group said in a press release.

The firm is interested in projects related to the EURO 2012 football championship, “particularly the building and restructuring of stadiums, road construction, airports and hotels,” the press release said.

However, the company said it would not limit itself to EURO 2012 projects and will consider a wide range of investment opportunities.

Arison Group is already active in Ukraine after subsidiary Bank Hapoalim, Israel’s largest bank owned by Arison, purchased a 76 percent stake in the Ukrainian Innovation Bank (Ukrinbank) for $136 million in December.

Meanwhile, Seven Hills LLC, a Ukrainian-registered developer that serves as the Ukrainian arm of Israel’s Scorpio Real Estate, is working on “four major projects in progress with an estimated value well in excess of $1 billion,” said chief executive officer Arie Schwartz.

Scorpio Real Estate is owned by Israeli billionaire businessman Benny Steinmetz.

Seven Hills will complete the first of four buildings, containing 380 apartments, in the Park Avenue residential development in the Holosiyivskiy district in Kyiv by the end of 2008.

The Israeli developer will begin construction on a residential complex in the Pechersk District at an undisclosed time, recruiting renowned New York architect Costas Kondylis to design what will be “the tallest residential complex in the city,” Schwartz said.

The Kondylis architectural firm has designed many notable real estate projects in New York, including the Trump World Tower, the Plaza Hotel & Residencies, and the Atelier.

The Pechersk project has the regulatory go-ahead and when completed, will offer 150,000 square meters of apartment space and “a spectacular penthouse that will be the envy of the city,” Schwartz confirmed.

Another project, Airport City, will consist of office units linked to warehousing and distribution facilities with shopping outlets, a hotel and restaurants.

It will be located on a 50-hectare plot next to Kyiv-Boryspil highway.

The company will start work on the project in 2009, and its offices will provide work space for more than 5,000 people.

Airport City was included in the general plan for EURO 2012 preparations as a priority project, Schwartz said.

Another project being designed by Kondylis, Podil Center, will be a 30,000-square meter complex combining Class A office and shopping space across from the National University of Kyiv Mohyla Academy.

The current projects are the start of Seven Hills’ national and regional investment program called “Project 150,” which envisions property developments in all Ukrainian cities with a population of 150,000 or more people, Schwartz said.

Source: Kyiv Post

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Poland And Ukraine Face Mounting Euro 2012 Pressure

WARSAW, Poland -- One year on from winning the race to hold Euro 2012, Poland and Ukraine are under mounting pressure from UEFA to step up efforts to get ready for the football showcase.

Michel Platini, President of the UEFA

In the face of repeated warnings from European football's governing body about the mammoth task, both countries have been pushed on to the defensive.

On April 18, 2007, UEFA raised eyebrows by choosing Poland and Ukraine over Italy and joint bidders Hungary and Croatia to host the quadrennial, 16-nation European championships.

It will be the first time either has run a major tournament -- and in Poland it is seen as a way to improve the image of the domestic game, tarnished by match-fixing.

It also marks UEFA's first big foray into the ex-communist bloc, where stadiums, hotels and transport are undergoing a major upgrade -- with an estimated price tag of 42 billion euros (67 billion dollars) in Poland and Ukraine.

UEFA chief Michel Platini has been turning up the heat, urging the hosts to "protect the credibility" of Euro 2012, and last month issued a new "wake-up call."

UEFA recently sent inspectors to Poland, but has refused to comment on their findings.

According to leaks in the Polish press, they noted a "speeding up" of overall plans, but were deeply concerned about the stadiums.

They spotlighted a "very high risk" that the new, 55,000-seat venue for the opening match, in the heart of Warsaw, would not be ready.

Michal Borowski, who is in charge of the 400-million-euro (637-million-dollar) state-funded project, this week played down the worries.

"The stadium should be delivered by 2011. That's a little later than promised by the government. But there's no other chance of doing it before," he told reporters.

UEFA also allegedly pointed to a "high risk" in the Baltic port of Gdansk, but saw progress in Poznan and Wroclaw to the west.

Wroclaw's mayor, Rafal Dutkiewicz, told AFP things were going "quite well", with the 44,000-seat stadium there due to open by the end of 2010. "We'll have challenges, but what's nicer than challenges?" he said.

The stadium situation looks better in Ukraine. Kiev's main ground is already being transformed into an 85,000-seat venue for the final.

To the east, work is winding down in Dnepropetrovsk, with a new 50,000-seat arena set to open this summer, while a similar-sized venue in Donetsk should be ready by the end of the year. Some local authorities are gloomy, however.

"Preparations for Euro 2012 are going worse and much slower than they could be," said Donetsk's mayor, Alexander Lukianchenko.

Infrastructure remains a major worry.

Currently, the 1,900-kilometre (1,180-mile) trip from Gdansk to Donetsk requires serious stamina.

A lucky driver can do it in 23 hours -- not counting the wait at the border -- with just 23 kilometres (14 miles) of motorway and most of the rest on single-lane roads.

It's worse by train: the trip takes 43 hours, at best.

Despite major EU funding since the fall of communism in 1989 and Poland's membership of the bloc in 2004, the country still hasn't built a basic motorway network between its major cities. The situation is worse in Ukraine.

Polish authorities aim to build 1,100 kilometres (682 miles) of new motorway nationwide by 2012. Since last April, however, they have tallied just 35 kilometres (22 miles).

Among other concerns are new airport facilities and hotels.

The sluggishness was an election issue last October, when Poland's liberals, led by ardent football fan Donald Tusk, beat the country's conservatives.

Polish businesses, however, complain that despite pledges, Tusk has done too little to cut the red tape hampering preparations.

"There hasn't been the necessary legislation to smooth the organisation of Euro 2012," said employers' federation boss Andrzej Malinowski.

Tusk, however, has affirmed he is "100-percent convinced" things will be fine.

"Speaking frankly, over the past year we could have done much more," said the Ukrainian Football Federation's chief Grigory Surkis, blaming the political instability that has gripped his country.

But striking a positive note, he said: "I'm sure we will succeed."

Source: AFP

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Friday, April 18, 2008

Accor, Rezidor, InterContinental Plan Nationwide Hotel Development

KIEV, Ukraine -- Three world-renown hotel franchises plan to build more than 40 Western-style hotels in Ukraine during the next several years.


France’s Accor, the American InterContinental Hotels Group and Belgium’s Rezidor Hotel Group already launched nine projects, with three targeted for 2009.

While Ukraine’s hosting of the upcoming EURO 2012 football championship has raised interest in the market, hotel experts said the new projects are meant to fill growing overall demand and offer higher quality in a country where most hotels are Soviet renovations.

“EURO 2012 will last only one month,” said Alexis Delaroff, director of operations for Accor Russia and the CIS. “Our management contracts are signed for 20 years.”

Accor is currently working with Ukrainian business partners to build its five-star Sofitel brand hotel and two three-star Ibis hotels in Kyiv.

Delaroff declined to identify the local hotel operators backing the projects, or how much has been invested.

Accor also plans to build four-star hotels in Ukraine’s “millionyks,” or cities with more than one million residents (Kyiv, Dnipropetrovsk, Donetsk, Odesa and Kharkiv), as well as Ibis hotels in smaller cities, Delaroff said.

He stressed Accor’s advance into the Ukrainian market was motivated by more than just the EURO 2012 football championship.

The Rezidor Hotel Group, which already operates one hotel in the country, Kyiv’s Radisson SAS, announced the most ambitious expansion plans of the three hotel chains.

The Belgian company plans to open 11 Radisson hotels and 16 Park Inn hotels across the country, said Darren Blanchard, business development director for the Rezidor Hotel Group.

Like Accor, Rezidor will operate the hotels under management contracts with local partners.

“Three more Rezidor hotels are under active development and another six hotels are in the advanced planning stage,” Blanchard said. He didn’t disclose the level of investment.

The company also operates the five-plus-star Regent and five-star Missoni hotel brands.

“In Kyiv, we will develop all four of our hotel brands,” Blanchard said, adding that Radisson SAS and Park Inn hotels will be opened in many cities, including Kharkiv, Dnipropetrovsk, Odesa, Donetsk, Zaporizhia, Yalta and Lviv, while Park Inn hotels will be opened in other smaller Ukrainian cities.

Meanwhile, the InterContinental Hotels Group is backing two hotel projects in Kyiv, a Holiday Inn and a five-star InterContinental hotel.

Developer Toronto Kyiv will complete construction of the Holiday Inn in 2009, said Alexander Shchukin, the company’s deputy general director.

In addition to the InterContinental, developer Yaroslaviv Val will also build a five­star Fairmont brand hotel in Kyiv by the end of 2009 at an investment of about $150 million.

Nearly 1.5 million tourists visited Ukraine in 2007, a 20 percent year­on­year increase, according to Ukraine’s State Statistics Committee.

More business travelers are also arriving, in line with larger inflows of foreign investment since the Orange Revolution of 2004.

More than 100 hotels currently operate in Kyiv, but the lion’s share are below three­star quality.

Kyiv offers only four five­star hotels – the Hyatt Regency, Premier Palace, Radisson SAS Hotel and Opera Hotel.

Source: Kyiv Post

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Lavrov Assures Kiev That Putin Respects Ukraine's Sovereignty

MOSCOW, Russia -- Russia's top diplomat gave assurances, this week, that in a recent speech to NATO leaders, President Vladimir Putin did not seek to undermine the sovereignty of Ukraine.

Russian Foreign Minister Sergey Lavrov (L) and Ukrainian Foreign Minister Volodymyr Ohryzko.

During the April 2-4 Bucharest summit, Putin gave a closed-door speech to NATO leaders, which reportedly focused on Russian opposition to some NATO members' plans to admit Ukraine and Georgia to the alliance.

"I am convinced that all those who attended the Russia-NATO Council session in Bucharest and then attempted to give Ukraine their interpretation of what the Russian president said, did so with ill intent. The Russian president said nothing that would infringe on Ukraine's sovereignty," Sergei Lavrov told reporters in Moscow after talks with his Ukrainian counterpart, Volodymyr Ohryzko.

Around the time of the summit, media speculated over a possible deal between the Kremlin and Washington, under which Moscow would tolerate a missile shield in Central Europe in exchange for NATO allowing Georgia and Ukraine to fall back into Moscow's sphere of influence. Just before the summit, Bush rejected such rumors.

At the summit, NATO powers refused to admit Georgia and Ukraine to the alliance's Membership Action Plan, despite Bush's strong support of the countries' bids. The rejection was seen as a response to Putin's threat to target missiles at Ukraine if Kiev joins NATO.

Last week, Lavrov reiterated that Russia would do everything possible to prevent Ukraine and Georgia from being admitted to NATO.

In reaction to Moscow's statements on the issue, the Ukrainian Foreign Ministry demanded last Saturday that Russian authorities "stop the practice of threats" against Kiev, saying: "Statements by high-ranking Russian officials are anti-Ukrainian... and constitute direct interference in Ukraine's internal affairs."

Speaking after the meeting with the Russian foreign minister, Ohryzko gave assurances that Ukraine's drive to join NATO is not targeted against Moscow. NATO is set to reconsider Kiev's bid this December.

"Once Ukraine is a member of NATO it will not be Ukraine against Russia. Membership in the alliance is not targeted against interests of the Russian Federation," he said.

The diplomat also said the country's Constitution forbids the deployment of foreign military bases on its territory, and that a final decision on NATO membership will be made on the basis of a nationwide referendum.

In a recent survey carried out by the All-Ukrainian Social Service only 11.1% of Ukrainians polled said they supported the country's drive to join NATO, while almost 36% said they would vote against the plans if a referendum were held.

Source: Tehran Times

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Thursday, April 17, 2008

Secret Trial Denies Gongadze Justice

KIEV, Ukraine -- On March 15, 2008, the Kyiv Appellate Court found three former policemen guilty of the kidnapping and killing of the journalist Georgiy Gongadze on September 16 to 17, 2000.

Ex-President Leonid Kuchma is accused of ordering the kidnapping of the journalist that became a murder.

Mykola Protasov received 13 years in prison, while Valeriy Kostenko and Oleksandr Popovych got 12 years each.

The verdict accused their police commander, Oleksiy Pukach, of directing the murder, but he received no sentence on account of his disappearance.

This was Ukraine’s most controversial unlawful killing, as no less than former President Leonid Kuchma is accused of ordering the kidnapping of the journalist that became a murder.

This trial could not take place while Kuchma was president of Ukraine.

After Gongadze’s disappearance, the president, along with the police and prosecution service, created a web of lies about what happened to Gongadze, including that he had run away, the headless corpse wasn’t his, and that they had organized Ukraine’s biggest ever missing person’s search.

The only attempt during Kuchma’s tenure in office to prosecute Pukach took place on Oct. 22, 2003, when the police commander was arrested. The arrest took place while Kuchma was on a state visit to South America. On the president’s return, a judge released Pukach from jail.

Justice for Gongadze had to wait until after the Orange Revolution.

On Jan. 27, 2005, four days after the inauguration of President Viktor Yushchenko, the policemen whose identity was known earlier by the Security Service of Ukraine and Prosecutor General’s Office were arrested and confessed to taking part in the kidnapping and killing of Gongadze.

Pukach disappeared just before Yushchenko’s inauguration.

Since the policemen had confessed, why did it take three years to reach a verdict? The verdict given by the judge Irena Hryhorieva on March 15, 2008 was based almost entirely on the confessions of the three policemen.

Since 2005, these confessions have been available on video and transcript on the Internet (www.ord-ua.com).

Comparing the verdict with the case’s detailed presentation by prosecution investigator Roman Shubin, which appeared on Dec. 23, 2005 in the Kyiv newspaper Segodnya, provides further evidence that the court stretched out the proceedings.

Assuming that the court was not incompetent, one can assume that political pressure came from Yushchenko’s office to prolong the trial as long as possible.

On March 1, 2005, Yushchenko, announcing the arrest of the three policemen, promised the organizers would also be brought to justice.

Three days later, one of the alleged organizers, former Minister of Internal Affairs Yuriy Kravchenko, committed suicide.

Following this dreadful event, Yushchenko backed away from putting on trial the two chief suspects in organizing Gongadze’s kidnapping -- Kuchma and head of his Presidential Administration, Volodymyr Lytvyn.

The president’s office now hoped that the longer the verdict was postponed, the more irrelevant the case would become, and that the public would forget that the organizers of the crime were not on trial.

Judging from the minimal coverage of the verdict in Ukraine’s mass media, the president’s office succeeded in having the media forget that the alleged organizers of Gongadze’s murder are still at liberty.

The media has been almost silent over the fact that most of the trial was held in secret, and reminiscent of past Soviet political trials, and against the country’s Constitution.

Article 129, point 7, of Ukraine’s Constitution provides the “openness of a trial and its complete recording by technical means.”

Most of the policemen’s trial was kept secret to maintain people’s ignorance of the state’s political surveillance, and specifically how it was carried out against Gongadze.

In the summer of 2000, up to 30 secret police agents were used to spy on Gongadze. On the day of his disappearance, 15 undercover policemen were used to track his movements. With four of them kidnapping him, the others watched.

Besides being unlawful, this was a huge state expenditure on a journalist whose articles appeared on the Internet, which very few had access to in the year 2000, and whose only “crime” was his right to write critical articles about the president and his immediate circle.

The decision to try the three policemen in secret was sadly supported by the journalist’s widow, Myroslava Gongadze.

She should have withdrawn her lawyer from the trial like Gongadze’s mother did. Such a united stand would bare to the world the sham of the secret proceedings.

The consequence of this prolonged and secret trial is that the killers who confessed are in prison, while the organizers who lied are free.

Source: Kyiv Post

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Ukraine - Industrial And Common Espionage

KIEV, Ukraine -- Ukraine's classified government databases are illegally being sold to members of organised crime groups, consulting firms, corporate security firms and other buyers, according to Ukraine's Security Service Sluzba Bezpeky Ukrayiny (SBU - formerly known as the KGB).


The SBU says that the most sought after databases are tax, customs and ministry of foreign databases, the price of which are determined by their sensitivity.

Since achieving independence in 1991, Ukraine has been plagued by security leaks.

From 1999 until 2002, the president's office was bugged by his political opponents.

The release of recordings of conversations between President Leonid Kuchma and high government officials created an international scandal that eventually doomed Kuchma and led to the Orange Revolution in 2004.

Russian intelligence services have also been actively recruiting agents and buying or stealing Ukrainian defence and political information since Ukraine declared independence from the Soviet Union in 1991.

The Russian foreign intelligence gathering service Sluzhba Vneshnei Razvedki (SVR), has managed to infiltrate its agents into the highest levels of the Ukrainian presidential administration, the government, the military and the SBU.

Ukrainian SBU sources point to the strategic Crimean peninsula as a 'hot spot' for SVR activities.

Crimea is where both the Russian and Ukrainian Black Sea fleets are based.

Sources in the SBU allege the SVR increased its efforts in Crimea after the joint Ukrainian-NATO Sea Breeze training exercises began in 1997.

Russia strongly protested these exercises, but was unable to stop them.

So far, the only reported incident linking Ukraine to espionage in Russia took place in April 2008 when Russian Federal Security Service Federalnaya Sluzhba Bezopasnosti (FSB) agents arrested brothers Illya and Alexander Zaslavsky for allegedly stealing Gazprom documents and turning them over to Ukraine, the Russian website NewsRu.com reported.

The FSB has neither confirmed nor denied this story and there has been no reaction from the Ukrainian government about the accuracy of the Russian website's claim.

However, the evidence points to a Ukrainian-Russian espionage battle that might escalate in the near future.

Source: Jane's Intelligence Digest

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Ukraine Ruling Bloc Confronts President Over Ties With Opposition

KIEV, Ukraine -- Ukrainian Prime Minister Yulia Tymoshenko's bloc accused the president on Wednesday of siding with the opposition, and set an ultimatum, saying he must either work with the cabinet or dismiss it.

Prime Minister Yulia Tymoshenko

"We will tell the president that if he considers his administration and National Security and Defense Council - where [ex-premier Viktor] Yanukovych's shadow government members are continually being admitted - to be his government, he should openly tell the Ukrainian people that he does not trust the cabinet, and dismiss it, to be able to work with Yanukovych," said Mykola Tomenko, a senior member of the bloc's parliamentary faction.

On Tuesday, the president appointed Konstantin Hryshchenko, an adviser to Yanukovych when premier, first deputy head of his administration.

The National Security and Defense Council has been headed by Raisa Bohatyryova, a member of Yanukovych's Party of Regions, since December.

President Viktor Yushchenko and his aides have criticized Tymoshenko's government for failure to tackle economic problems, including soaring inflation.

In March, consumer prices were up 26% from a year earlier, amid the global food price surge, and as the government repaid some of the population's savings lost when the Soviet Union collapsed.

In the latest blow to Tymoshenko's government, which was formed in December, Yushchenko cancelled its privatization plan, including the sale of the Odessa port's chemical plant and Turboatom nuclear equipment producer, saying the sale of strategic enterprises ran counter to law.

Yushchenko also said the government-proposed land plot auctions nurture corruption, while the deputy head of his administration, Ihor Pukshin, openly accused the ruling bloc of corruption.

Also on Wednesday, the leader of the Tymoshenko bloc's faction in the Supreme Rada said Yushchenko has been continuously thwarting the government's initiatives.

"The head of state and his entourage have been thwarting all the government's efforts," Ivan Kyrylenko said, demanding that presidential decrees blocking the initiatives be cancelled.

Tymoshenko was Yushchenko's closest ally in the 2004 "orange revolution" protests that brought him to power. He dismissed her as premier about eight months later, but she regained the post late last year.

Both Yushchenko and Tymoshenko are widely expected to run for president next year.

Source: RIA Novosti

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A Year Lost In EURO 2012 Preparation

KIEV, Ukraine -- The euphoria which gripped Ukraine and Poland on April 18, 2007 after winning the right to host Europe’s football championship, EURO 2012, has come to nothing.

Polish Football Association chairman Michal Listkiewicz (L), holds the European Champions trophy with Hryhoriy Surkis, President of the Ukrainian Football Association after Poland and Ukraine were announced as co-hosts of the 2012 European Championship soccer tournament at Cardiff City Hall, in Cardiff, April 18, 2007.

A year after the triumphal hugs and kisses, the two countries’ preparations have progressed so poorly that Football Federation of Ukraine President Hryhoriy Surkis, and Football Federation of Poland President Michal Listkiewicz had to explain the situation in detail to the Union of European Football Association’s executive committee in last March.

The National Agency to Prepare and Host EURO 2012 was established to coordinate all state structures in Ukraine. Its chair, Yevhen Chervonenko, constantly criticizes the Cabinet of Ministers for ignoring his organization’s problems.

“I consider the level of financial support for the Agency by the government to be embarrassing,” he said of the EURO 2012 preparation funding. “The government scoffs not at me (I don’t care — I’m a self-sufficient person), it scoffs at Ukraine,” adding,”I have been spending my own personal money to maintain the agency. The cars, computers in the office – everything was bought with my own money. I have spent and spend without regret.”

But the poor Chervonenko can hardly come up with the tidy sum of nearly 16 billion euro necessary to host the championship. The Cabinet is ready to offer merely a fifth of the sum and state funds will be transferred to the city budget accounts starting next year.

Poland is ready to spend much more in preparations, about 27 billion euro, according to Fitch, the authoritative rating agency.

Surkis thinks the stall with EURO 2012 is a consequence of election campaigns and “a misunderstanding of the significance of this international project, which is able to fundamentally change Ukraine.”

“In spite of some political complications, we have no back­up plan,” UEFA Chair Michel Platini announced in April. “We trust Ukraine and Poland.”

Despite Platini’s diplomatic language, the two countries’ stalled EURO 2012 preparation evokes worry among the European experts who monitor EURO 2012 preparations.

There are no stadiums in Ukraine prepared to accept the European championship. Two of them, in Donetsk and Dnipropetrovsk, are incomplete, and restoration of Kyiv’s Olimpiyskiy Stadium, the site of the final match, hasn’t begun. Demolition of the incomplete shopping center Troyitskiy is postponed for May.

Meanwhile, construction of a new stadium in Lviv is still on paper. “The Austrian development firm Albert Wimmer, which designed the stadiums in the Austrian cities of Salzburg, Klagenfurt and Innsbruck, where EURO 2008 will take place, signed a contract with the city and started developing the necessary documentation,” said Oleh Zasadniy, head of the EURO 2012 department of the Lviv City Council. Lviv also doesn’t have enough comfortable lodging to host the expected guests. None of Lviv’s 46 hotels has five stars but the mayor says that by 2012, the city will have five five­star hotels.

The situation in Donetsk is not much better, offering only one five­star hotel, the Donbass Palace. Mayor Oleksandr Lukianchenko assures that there will be three five­star hotels by 2012 and.

The Shakhtar football club’s stadium aims to become the first prepared for EURO 2012. The $250 million arena to seat 35,000 football fans will be finished by Turkish firm ENKA by the end of this year, according to Rinat Akhemtov, the owner of Shakhtar Donetsk.

Construction of the stadium in Dnipropetrovsk is planned for completion at the same time. German firm Hochtief has been building the stadium at a cost of 50 million euro.

Both football clubs are financing the construction.

“Only the so­called captains of industry are moving forward, whether for good or bad,” Chervonenko said. “Thanks to them, the championship will take place in Ukraine, because they don’t try to redirect authority and money streams in their direction. They are building.”

Most of Chervonenko's skepticism is aimed at the government. In his view, local officials look at the 2012 situation “squinting, understanding they won’t be in their posts when it starts.”

Prime Minister Yulia Tymoshenko demonstrates her willingness to personally control the process herself. During a meeting with representatives of 120 companies and 18 embassies, she tried convincing them of Ukraine’s investment attractiveness leading up to the championship. The government isn’t able to host the championship at national treasury’s expense only, Tymoshenko said.

The government is ready to give Hr 27 billion while the total cost of preparation is estimated at Hr 125 billion. Reconstructing 13 airports requires Hr 9.5 billion alone, and road construction will cost Hr 37.5 billion more.

In May 2007, President Viktor Yushchenko established a presidential coordinating board to manage Ukraine’s preparation for EURO 2012. At the same time, the Cabinet of Ministers passed a resolution to establish an organizational committee for the football euroforum.

“But the organizations will remain on paper until the act,” Surkis said.

Today, the Ukrainian government hasn’t begun financing the preparation for the tournament. Instead politicians quarrel about who will lead the EURO preparations. First Tymoshenko decided to lead the process and appointed Surkis and Chervonenko as her assistants.

Later the president, with his decree, appointed new members to the coordinating board, with himself as its chair.

Meanwhile Italy, which lost to the Polish­Ukrainian bid last April, has instantly reacted to the crisis in Ukraine. “That decision to give EURO 2012 to Ukraine and Poland was based on political reasons and didn’t consider the economic situation,” said Giancarlo Abete, president of Italian Football Federation. “Italy today has all the necessary facilities – stadiums, airports, and hotels.”

EURO 2012 is a challenge for the UEFA authorities as well, Surkis said. In spite of this, he is sure that their morale will not be harmed because of Ukraine. “UEFA officials understand that to build a house, one should lay the roads first, bring the building materials, and build the foundation,” Surkis said.

Optimistic experts suggest that Ukrainian authorities consider EURO 2012 preparations to be an advertising campaign for the country in general. “Ukraine is in a zone of increased attention for the next several years, and we should use that wisely,” said Oksana Matviychuk, manager of the branding department of Research & Branding Group, a Ukrainian company that deals with sociological, political and business studies.

EURO 2012 will help local businesses such as hotels, realty agencies, restaurants, taxi companies and advertising agencies. “Ideally, there should be a genuine parade of products with the championship logo: beer, milk, cheese, butter, not to mention souvenirs,” said Mykhaylo Veklyk, president of Lviv­Kyiv marketing research, media audit and branding company M.V. Group.

But it is not reasonable to start the advertising campaign today, which would be the same as giving the announcement of a New Year sale in May, said Serhiy Goronovych, director of Tifantis Van Winner Consulting Ukraine. That should be done no earlier than one and a half years before the championship in the media and at EURO 2012 sites, stadiums, hotels, airports, and railroad stations.

Despite the problems, Surkis remains an optimist, he is sure that by the end of the summer, Ukraine will have plenty to show Platini when he visits after the EURO 2008 final.

“Millions of people believe that in four years, a tremendous leap from dullness and misery to a European standard of living is possible,” Surkis said. “And we must make time.”

Source: Kyiv Post

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Wednesday, April 16, 2008

Showdown Between President And Government

KIEV, Ukraine -- Tensions between Prime Minister Yulia Tymoshenko and President Viktor Yushchenko escalated sharply on Tuesday when the presidential office urged the government to dismiss ministers responsible for Ukraine’s skyrocketing inflation.

Viktor Yushchenko and Yulia Tymoshenko in better days.

The call for the dismissals came as Yushchenko also suspended the government's privatization plan, which may significantly worsen the budget revenue forecast and may hit hard Tymoshenko's popular support rating.

The developments underscore the significantly strained relations between Yushchenko and Tymoshenko that may eventually lead to the collapse of the pro-Western government coalition they lead.

"The ministers that have failed to handle the negative trends and failed to suggest quick and market-oriented instruments in reaction must leave their posts," Viktor Baloha, Yushchenko's chief of staff, said in a statement.

Baloha's criticism was aimed at the government's failure to curb inflation, which has been growing fast this year, partially due to Tymoshenko's populist campaign to massively pay out failed Soviet-era bank deposits.

The campaign helped Tymoshenko to significantly increase popular support rating, but the massive payments also strained the budget and spurred consumer prices increase that now threatens economic stability.

Ukraine’s consumer prices rose 3.8% on the month in March, the highest figure so far this year, pushing the cumulative inflation to 9.7% in January through March, outpacing inflation that had been forecast by the government for the entire year of 2008.

Measured on an annual basis, inflation rose to a shocking 26.2% in March compared with March 2007, which puts a mounting pressure on the National Bank of Ukraine to intervene by hiking its key interest rates.

Oleksandr Turchynov, the first deputy prime minister and Tymoshenko's closest ally, responded sharply to Baloha's comments, suggesting no action will be taken against the ministers.

"We do not accept the next portion of dirt that is being poured from the office of the president this week," Turchynov said in a statement. "It's beyond our dignity to give an assessment to this intellect."

Tymoshenko, who until recently insisted on meeting her original forecast of 9.6% inflation in 2008, had last week admitted the government had failed to curb the price growth. She said the government needs another three month to get things under control.

But Baloha the new timeframe was too short to actually change the trend, and again criticised the government for planning to resort to administrative price controls while combating inflation.

"The prime minister's statements of overcoming inflation within 5-6 months look too optimistic," Baloha said. "Honestly speaking, these statements must be called populist. On the top of that the government resorted to administrative price controls and that only fuels the inflation."

Meanwhile, Yushchenko also suspended the government's decree that had been calling for the quick privatization of the Odessa Portside Plant, the major producer and exporter of ammonia.

Tymoshenko needs to sell the plant quickly to raise enough money to keep up massive payments of the failed Soviet-era bank deposits, while the president fears the move would only further increase inflation.

On the other hand, the suspended privatization jeopardizes Tymoshenko's plans to keep up the payments that may hit hard her popular support rating, analysts said.

Turchynov lashed out at the president for the move.

"Unfortunately, a number of decrees has been signed by the president that completely block fair and transparent privatization in Ukraine," Turchynov said. "I believe this is a demonstrative abuse of powers and secondly conscious and aggressive policy aimed at destroying this year's budget, economic destabilization and maintaining a corrupt way of privatization."

Source: Ukrainian Journal

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Taiwan Firm Selected To Overhaul Troubled Ukraine Stadium

KIEV, Ukraine -- A Taiwanese construction company has won selection to overhaul Ukraine's top football stadium in preparation for the 2012 European Championships, Korrespondent magazine reported Tuesday.

Kiev's Olympic Stadium

Taipei-headquartered Archasia Design Group Ltd. will perform major repairs to Kiev's troubled Olympisky Stadium, a structure whose reconstruction has been stalled for years due to a land ownership dispute in the Ukrainian capital.

The 94,000-seat stadium, built during the Soviet era and slowly falling apart, is the site of the scheduled final of Euro 2012.

Ukraine and Poland in April 2007 won rights to co-host the tournament.

Archasia Design defeated 14 competitors for the Olympisky Stadium repair contract, including bidders from Austria, China, England, Germany, and Ukraine.

Members of Ukraine's Euro 2012 planning committee voted 21 out of 24 in favour of Archasia's low bid.

The cost of the winning offer was not made public. Ukrainian sports media estimates have placed the price of coverting Olympisky Stadium into a first-class venue at between 10 and 50 million dollars.

Archasia is a building construction and design firm operating for 20 years in the Chinese and Taiwan markets. Sports development projects involving the company include structures in Taipei, according to the Archasia web site.

The announcement of Archasia's assignment to the Olympisky project came one day after Poland's and Russia's presidents made a joint statement declaring their countries would run a championship to international standards.

Preparations for work on Olympisky Stadium began in early April, after nearly two years of wrangling in Ukrainian courts over whether or not a partially-built shopping centre next to the stadium might be dismantled.

The dispute was resolved after repeated executive orders by Yushchenko to tear down the shopping centre.

UEFA President Michel Platini and other senior UEFA officials in recent months had expressed worry at the slowness of Polish and Ukrainian preparations for the event, and even hinted Warsaw and Kiev might get the championship taken away from them, if work were not speeded up.

Both countries require massive cash injections and construction work, in order to host the event to the standards demanded by UEFA.

Source: DPA

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Tuesday, April 15, 2008

Corruption In Ukraine Threatens National Security – Yushchenko

KIEV, Ukraine -- Ukrainian President Viktor Yushchenko has said that corruption in Ukraine is a threat to national security.

Ukrainian President Viktor Yushchenko

“Corruption has gone so far that it is taking away the future from our state,” Yushchenko told a conference devoted to the struggle against corruption.

He said this social ill was most frequent in the bodies of state power, including law enforcement. Yushchenko accused the senior officials of state bodies of power of lack of coordination in resisting corruption.

“How come we do not have the proper statistics, criteria and legislation? Our task is to find the motivation in order to fight corruption effectively, to unite in the drive for a common cause and to resist this ill,” the president said.

Yushchenko pointed to a menacing degree of corruption in the health service, education, courts, the police, tax authorities, license policies and customs.

“Shortfalls in the struggle against corruption are nakedly clear. No steps are being taken to prevent it. We still lack a competent agency that would be responsible for comprehensive work to resist this phenomenon.”

Source: ITAR-Tass

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Ukraine Proposes 19-49 Percent Rise In Household Gas Prices

KIEV, Ukraine -- Ukraine's government proposed raising by 19-49 percent the price of gas for households, in a move that should improve the finances of state energy firm Naftogaz, seeking to avoid default on a $500 million Eurobond.


The rise would also give soaring inflation a one-off boost and affect the popularity of Prime Minister Yulia Tymoshenko's government, but would benefit the economy overall by raising the subsidised gas prices closer to market levels, analysts said.

Prices for housholds have been unchanged since the end of 2006, despite increases in imported gas prices from Russia to $179.50 per 1,000 cubic metres this year from $95 in 2006.

This has been one of the factors behind the deteriorating finances of Naftogaz, which has failed several times to hand over its 2006 audited accounts to holders of its Eurobond, a condition it must fulfil to bondholders.

Both Tymoshenko and President Viktor Yushchenko have said that Naftogaz is close to bankruptcy, but the government gave it a sovereign guarantee of $2.4 billion and a financial plan for this year sees some profit.

Naftogaz has asked for the deadline to hand in the accounts to be extended to May 31, according to a bondholder's notice published on the Luxembourg stock exchange. Last week, when it concluded a gas supply deal for this year, it said it would soon provide the accounts.

The proposal provided for price rises linked to consumption. In the lowest category, for those using less than 2,500 cubic metres of gas per year, the rise by December will be to 404.44 hryvnias ($80) per 1,000 cubic metres from 339 hryvnias.

In the highest category, for those using more than 12,000 cubic metres, the price will climb to 1,742 hryvnias ($344) from 1,173 hryvnias.

INFLATIONARY IMPACT

Inflation in Ukraine began soaring in the second half of last year, hit by poor harvests after a drought. In March, the consumer price index (CPI) recorded its highest monthly jump since 1999, topping 26 percent year-on-year.

"There will be a one-off effect pushing inflation upwards, but given that the overall share of household spending (in the CPI basket) is about 10 percent, overall we're talking about half a percentage point impact on inflation," said Katya Malofeeva of Renaissance Capital in Moscow.

Inflation reached 16.6 percent in 2007 and analysts have forecasts of between 15-20 percent for this year.

KBC's Chief Eastern Europe Economist Zsolt Papp said by spending so much more on gas, some consumers may feel out of pocket and therefore spend less on other goods.

"The first reaction would be that there is less money to spend on things, or certainly the feeling of having less money," he said.
The move may dent the popularity of the government among the lower income groups Tymoshenko says she represents and goes against some financial analysts' perception of her populism.

"I don't see how any government can survive a 50 percent hike -- this is going to be a bigger issue for the economy and politics," Papp said.

Source: Guardian

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Shifting Focus From Boxing Arena to Political Arena

NEW YORK, NY -- The former heavyweight champion Vitali Klitschko is a contender for another title — mayor of Kiev, Ukraine. Klitschko, 36, retired in November 2005, while he was the World Boxing Council heavyweight champion.

Vitali Klitschko was in New York on Monday, looking for investors for Kiev, Ukraine. He is a candidate in Kiev’s mayoral race.

He was 35-2 with 34 knockouts, and he left behind a $4.2 million purse that he would have collected had he defended his title against Hasim Rahman. A few days before that fight, he had an operation on his right knee, which had been badly injured while sparring, and decided to retire.

In March 2006, Klitschko entered the political ring in Kiev by campaigning for mayor on an anticorruption platform. That May, he finished second to Leonid Chernovetsky in a multicandidate race, winning about 25 percent of the vote.

As he campaigns again for the post in an election scheduled for May 25, Klitschko is gaining more support, according to a recent poll by an analytical research center in Kiev, Institut Goroda. A total of 29.8 percent of those polled said they would vote for him, while 14.6 percent said they would choose Chernovetsky. Another 9 percent said they would vote for Olexander Omelchenko, who held the post for 10 years before the 2006 election.

“There is too much political corruption in Kiev, which is hurting this city in terms of development,” Klitschko said recently by telephone from the city, where he lives with his wife and three children. He works as a city councilman in Kiev, the capital of Ukraine with a population of about 3 million. “We need to bring Kiev up to proper European and American standards. But legitimate businessmen cannot invest money here, because the only deals made with this government are made under the table with their family and friends.”

Klitschko visited New York on Monday and will be in Washington on Tuesday to meet with politicians and potential investors for Kiev. He planned to return home Wednesday.

“I’m still young, and I have a lot of energy to fulfill my vision for a better Kiev,” Klitschko said in the telephone interview. “We are a young democracy in need of many strategies for development, including the development of buildings and roads, and we need to make sure that the people of Kiev can afford to pay for medicine, food, water, gas and other necessities.”

The 6-foot-7 Klitschko, a son of a Soviet Air Force colonel, was born in Belovodsk, Kyrgyzstan, which was part of the Soviet Union at the time. He qualified for the 1996 Olympics in Atlanta, but failed a drug test before the Games and was removed from the Ukrainian team.

His younger brother, Wladimir, replaced him on the team and won the gold medal in the superheavyweight division. Wladimir holds the heavyweight titles for the International Boxing Federation, the World Boxing Organization and International Boxing Organization.

Having lived for long stretches in Germany and Los Angeles, where his children were born, Klitschko says he has a vision for Kiev.

“I’ve been to many parts of the world, and I know by comparison that there’s a better way of life in the United States and in Europe than there is here,” he said. “The traffic in Kiev is terrible because we don’t have real highways for cars to travel. My home is about a mile away from my office, and sometimes it takes me an hour to get to work. There’s traffic in New York and Los Angeles, but nothing as incredible as this.”

Roy Jones Jr., a former heavyweight champion who has held numerous light-heavyweight titles, said he viewed Klitschko’s run for mayor as “a beautiful idea.”

“If a movie star can be the governor of California,” Jones said, referring to the current governor, Arnold Schwarzenegger, “why can’t a boxer be the mayor of Kiev?”

Jones said Klitschko’s boxing experience was good preparation for political sparring. “Vitali is a very smart guy,” he said. “And I’m sure he is studying his opponents, as well as the problems of the people he wants to represent, which will make him as successful in politics as he is in the ring.”

Klitschko received a Ph.D. in philosophy in sports science from the Kiev University, an accomplishment that helped earn him the nickname Dr. Iron Fist. He announced last year that he would return to the heavyweight division in the future, possibly in a fight against Samuel Peter for his W.B.C. title. Although injuries have set him back, he said, he is still leaning toward a return.

“I train for two hours every morning before I go to work,” he said. “I’m in great fighting shape right now.”

For now, the only opponents he has in mind are those who will be running against him next month.

“Every goal I have ever set for myself in life, I have made come true,” Klitschko said. “My biggest goal right now is to help create a modern, democratic Ukraine. To me, there is no fight more important than that.”

Source: International Herald Tribune

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Poland And Ukraine Beef Up Euro 2012 Plans

WARSAW, Poland -- The presidents of Euro 2012 hosts Poland and Ukraine, under fire from UEFA over allegedly slack preparations, on Monday signed a deal to beef up plans for co-hosting the tournament.

Ukraine's President Viktor Yushchenko (L) exchanges documents with his Polish counterpart Lech Kaczynski during their meeting in Warsaw April 14, 2008.

In a ceremony in Warsaw, Polish President Lech Kaczynski and his Ukrainian opposite number Viktor Yushchenko inked an accord on "in depth cooperation" between the two countries, which have regularly been prodded by European football's governing body since they were picked as hosts almost a year ago.

"I want to give my assurance that Ukraine will stick to the timetable and that everything will be ready in time," Yushchenko said.

Among the key planks of the latest deal is a move to improve transport links between the two countries, which is one of UEFA's major concerns along with sluggish stadium construction.

Yushchenko said they planned to step up motorway and rail network projects.

One of the problems is that Ukraine's rail network uses wide-gauge tracks, a legacy of the Soviet era, unlike Poland which uses the narrower gauge seen across much of the rest of Europe.

The deal includes a project to extend Polish-standard tracks to Lviv and Kovel in western Ukraine. Lviv is one of planned host cities in Ukraine, while Kovel is a hub on the way to the capital Kiev, which is also a venue.

The 380-kilometre (236-mile) rail journey from the Polish capital Warsaw, another host city, to Lviv currently takes around 15 hours.

Yushchenko and Kaczynski announced that government ministers and host city mayors from both countries would soon meet in Lviv to assess overall preparations for the tournament.

On April 18, 2007, Poland and Ukraine were shock winners of the race to host the quadrennial tournament, pipping Italy and fellow joint bidders Hungary and Croatia.

It will be the first time that either Poland or Ukraine, both formerly part of the communist bloc, have hosted a major football championship, and UEFA has been ringing alarm bells about the way they are approaching the task.

At the end of March, UEFA chief and French football legend Michel Platini issued what he called a "wake-up call" over lack of progress and said he planned to take stock again in June.

After Platini's remarks, Polish Prime Minister Donald Tusk -- who has already boosted funding in response to earlier criticism -- countered that he was "100-percent convinced" that things would be fine.

Source: WorldCupWeb

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Monday, April 14, 2008

Moscow Makes Furious But Empty Threats To Georgia And Ukraine

WASHINGTON, DC -- In the wake of NATO’s summit, top Russian officials are threatening Georgia and Ukraine directly and NATO indirectly with retaliation, if the alliance approves membership action plans for these countries.

The Kremlin in Moscow

During the run-up to NATO’s Bucharest summit, from such threats were commonplace Kremlin political consultants and state television pundits, including Gleb Pavlovsky and Sergei Markov, as well as senior Duma members and Ambassador to NATO Dmitry Rogozin.

On one occasion President Vladimir Putin himself threatened publicly to target Ukraine with nuclear missiles.

Offended by NATO’s commitment to open the door for Georgian and Ukrainian membership (Bucharest Summit Declaration), Moscow is staging a show of indignation replete with new threats.

Putin used this tactic during the April 4 NATO-Russia Council meeting in Bucharest and again during his April 6 meeting with President George W. Bush in Sochi.

On these occasions, Putin warned that if Georgia and Ukraine moved toward NATO membership, Russia might respond by recognizing Abkhazia and South Ossetia’s secession from Georgia and by instigating a partition of Ukraine.

According to a witness account, Putin told Bush that Ukraine was “not a real nation,” that much of its territory had been "given away" by Russia, and that Ukraine would “cease to exist as a state” if it joined NATO.

In that case, Putin hinted, Russia would encourage secession of the Crimea and eastern regions of Ukraine.

Kremlin spokesman Dmitry Peskov, who had accompanied Putin, subsequently told journalists that he “did not hear” Putin's remarks; but Peskov did not disclaim those threats.

This response would seem to reflect either a lack of plausible deniability or a war-of-nerves tactic, probably both.

Minister of Foreign Affairs Sergei Lavrov almost explicitly confirmed Putin’s warnings, recounting them more diplomatically in a radio interview: “Both in Bucharest and in Sochi, Putin recalled how present-day Ukraine, in its current borders, was formed, [recalled] the contradictions between western Ukraine and its eastern and southeastern regions. He said that what was being done to draw Ukraine into NATO would not facilitate the important task of helping Ukraine maintain its unity”.

Lavrov proceeded to warn on his account that Russia would do everything possible to prevent Georgia and Ukraine from moving toward NATO.

Furthermore, he issued a three-tiered warning that “NATO enlargement is turning into a systemic problem” in Russia-NATO overall relations, Russia’s bilateral relations with “those NATO countries that are actually pushing the issue,” and Russia’s policy toward the aspirant countries.

Chief of the General Staff of Russian Armed Forces, General Yuriy Baluyevsky, warned on April 11 that Russia would take military measures as well as “other types of measures” against Georgia and Ukraine, if these countries moved toward NATO membership.

The Duma’s CIS Affairs Committee Chairman Aleksei Ostrovsky warned in the wake of hearings that Russia “has legal grounds for revising the agreements made by Khrushchev,” that is, reclaim the Crimea from Ukraine.

He and other Russian politicians have recently raised the possibility of denouncing or renegotiating the 1997 Russia-Ukraine interstate treaty, which stipulates the inviolability of territory and borders.

Some Kremlin consultants regard those open threats as counterproductive to Russia’s interests and purposes. Vyacheslav Nikonov (himself no stranger to questioning the territorial integrity of Russia’s neighbors) argues, for example, that Moscow’s rhetoric in the wake of NATO’s summit can only strengthen the resolve of governments in neighboring countries to seek protection from NATO.

Sergei Karaganov, chairman of the Council on Foreign and Defense Policy (CFRS), a Kremlin advisory body, told the CFRS’s conference just held in Moscow that political measures would be more effective than military measures against Ukraine and Georgia if they moved closer to NATO.

He recommended discretion and quiet planning for deploying such measures at an appropriate time.

The Georgian and Ukrainian governments are not intimidated. Georgia’s Parliament Chair Nino Burjanadze, Minister of Foreign Affairs Davit Bakradze, and other officials have rejected such “interstate blackmail” and reaffirmed Georgia’s irreversible “national choice” to join NATO.

These and other Georgian officials describe Moscow’s threats to Georgia and Ukraine as added vindication of the two governments’ goal to join NATO.

In statements on April 9 and 11, the Ukrainian Ministry of Foreign Affairs said that Moscow’s questioning of Ukraine’s territorial integrity was “unacceptable” under international law.

It asked the Russian government to observe the 1997 Russia-Ukraine interstate treaty, which also stipulated refraining from threats of using force.

Verkhovna Rada Chairman Arseny Yatseniuk called those threats “inexcusable,” and the Rada’s national security and defense committee chairman Anatoly Hrytsenko (a leading proponent of NATO membership) noted that Baluyevski’s ideas merely reflected those of Russia’s top political leadership.

In Brussels NATO spokesman James Appathurai called for explanations about Moscow’s threatened “measures” and issued a reminder. “NATO Allies have been very clear [at the summit]: I restate the policy that they will make their own decisions on enlargement, without outside influence. Georgia and Ukraine have made it clear that they want membership. NATO’s door is open to them”.

Source: Eurasia Daily Monitor

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The President Of Kyiv

KIEV, Ukraine -- On May 25, around two million voters in Kyiv will elect a new mayor. It will be an early election, as was the case with the last parliamentary poll in September.

Current Mayor Leonid Chernovetsky (L) with mayoral candidate Vitaly Klitchko (R).

But more importantly for the business clans and political blocs taking part, the two month race to control the Ukrainian capital, which started on March 26, will be a dress rehearsal for the presidential elections scheduled for late next year.

Big money

Ukraine's Central Electoral Commission announced that it will cost Hr 16.5 million (over $3m) to hold the early mayoral elections - not much by Western standards, but money that could go toward a lot of neglected causes.

A more significant sum is what the candidates and their backers are spending. The head of Ukraine's Committee of Voters, an NGO, estimated that parties and candidates would spend $100m on their campaigns.

"If during the parliamentary elections, spending was $30-$40 for each vote, then during these elections you have to figure around $100 for each citizen of Kyiv," Committee of Voters chief Ihor Popov told a roundtable last month.

Why spend all that money on early elections, one might ask?

And the answer is: to get control over Kyiv's lucrative land plots, which the mayor and city council are responsible for handing out. Land plots in the capital are the equivalent of state industrial assets in the nation at large, yielding power, money and influence to those who control them.

If you're in office, you can find a way to transfer these assets to your supporters, yourself or the highest bidder. If you're not - you can accuse the people in power of doing so to the detriment of the public weal.

Current Mayor Leonid Chernovetsky has been accused by his political opponents of awarding land plots in return for political support.

The accusations were so serious that President Viktor Yushchenko felt compelled to suspend Chernovetsky as head of the Kyiv City Administration (an administrative post held concurrently by the mayor) while an investigation was conducted.

In addition, the parliament set up an ad-hoc commission to look into the matter on its own. Commission Chairman Mykola Tomenko, whose BYuT faction in parliament is hostile to Chernovetsky, accused officials from the country’s Prosecutor-General’s Office of taking plots from the city council as bribes.

All the same, Chernovetsky leads in the polls, commanding 38 percent voter support according to a recent poll by the Razumkov Center.

An experienced if eccentric politician, Chernovetsky has gone on the offensive.

His supporters were recently seen picketing on the grounds of a major city hospital, where a member of the BYuT team is said to be developing a controversial building project.

BYuT is the faction of Prime Minister Yulia Tymoshenko.

Chernovetsky's main opponents in the mayoral race are BYuT's Oleksandr Turchynov, considered Tymoshenko's right-hand man, and former heavyweight boxing champion Vitaly Klitchko, whose main financial support comes from Kyiv land developers.

Everyone for himself

The Kyiv electoral commission announced that it had received 120 applications to take part in the mayoral race.

And just like during the last parliamentary poll, the so-called Orange politicians, or those who came to power during the country's 2004 Orange Revolution, are as divided as ever.

The Secretariat of Orange President Viktor Yushchenko has called on the Orange faction BYuT to support Mr. Klitchko.

"An announcement by BYuT to support V. Klitchko would simultaneously amount to an announcement of support for a united coalition. Otherwise, internal tension in the democratic camp will only grow, which promises nothing good," presidential chief of staff Viktor Baloga said on April 8.

But with Prime Minister Tymoshenko expected to challenge Yushchenko for the presidency next year, no one seriously expected the two politicians to agree on a mayoral candidate.

Yushchenko fired Tymoshenko as his first premier back in 2005. Since then, her popularity among voters has risen steadily, at the expense of the president's.

For his part, Klitchko has the best chance of unseating Chernovetsky. During the 2006 mayoral race, the world famous boxer got 24 percent of the popular vote, compared to Chernovetsky's 32 percent.

But in 2006, it was a three-way race - between Chernovetsky, Klitchko and incumbent mayor Oleksandr Omelchenko, whose 21-percent came out of Klitchko's electorate.

This year Mr. Omelchenko has decided to throw in his hat again, but most analysts consider him a spent political force.

Klitchko, on the other hand, is enjoying popularity ratings of around 31 percent, according to the same Razumkov poll mentioned above.

Therefore, he is not seriously considering suggestions by members of BYuT that he drop out of the race.

"My decision to run for mayor of the city of Kyiv is balanced, well thought out and clear. I am not about to drop out," he told journalists on Thursday.

However, competition between Klitchko and BYuT's Turchynov only plays into the hands of Chernovetsky, who relies on a different segment of voters.

That's why BYuT and its coalition partners in the parliament have been pushing to change election legislation to allow a mayoral run-off.

"A two-tour election is more fair and objective," Tymoshenko announced last week.

If the mayoral elections are conducted in a single tour, Chernovetsky is likely to win with around a third of the popular vote, as he did in 2006.

For now the issue is awaiting inclusion on the parliament's agenda.

As the parliamentary speaker, Arseny Yatseniuk, is considered an ally of President Yushchenko, BYuT has accused the president of secretly supporting Chernovetsky's bid.

With his approval ratings continuing to fall, Mr. Yushchenko needs all the allies he can get, and a supportive mayor in the capital is nothing to look down one’s nose at.

The unlikely mayor

Tymoshenko is wagering that her personal popularity in Kyiv will transfer to Mr. Turchynov, but the mayoral election may turn out to be her hubris.

Turchynov, who has served as head of the country's intelligence service and now first deputy prime minister under Tymoshenko, has never run for office on his own.

If he loses the mayoral race and badly - recent polls give him a dismal 2.4 percent - his defeat may serve as an omen of worse times to come for Ms. Tymoshenko.

So far, Mr. Turchynov is behaving like an imitation Tymoshenko, whose success is a combination of flowery populism and steely confidence.

So when Turchynov, a practicing Baptist minister, suggested that the large number of mayoral hopefuls take off a Saturday to clean up Kyiv and plant trees, the effect was almost comical.

And his suggestion that Mr. Klitchko would be better suited to heading Ukraine's efforts to host the European football championship in 2012 sounded nothing short of cocky.

"Unfortunately, I don't see among the other candidates anyone who could better handle the tasks and solve the problems that need solving soon," he said last week, when his candidacy was announced.

Unfortunately for Mr. Turchynov, the voters of Kyiv might see things differently, and he doesn't have much time to adjust their views. But more importantly, Ms. Tymoshenko, who is already faced with a powerful group of enemies who range from Ukraine's richest men to the Kremlin, shouldn't be gambling on an election that could cost her the presidency down the road.

Source: Eurasian Home

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Libya-Ukraine Reach Oil Deal

KIEV, Ukraine -- Ukraine's President Viktor Yushchenko says his country will pump Libyan oil following an agreement with the Libyan leader Muammar Gadhafi.

Ukrainian President Viktor Yushchenko (R), and Libyan Leader Moammar Gadhafi seen during their meeting in Tripoli, Libya.

Yushchenko told Ukrainian television network ICTV on Sunday, "We want Ukraine to produce its own oil in Libya. We have reached an agreement with Qaddafi that one of the four oil fields - which were given to Ukraine in 2003 and which it has lost since -- will be returned to Kiev."

Yushchenko went on to add that the Libyan leader will be traveling to Ukraine later this year, and that the construction of a refinery in the Ukraine by Libya would be discussed during the visit, AFP reported.

Yushchenko made his first official visit to Libya last week amid tense relations with Russia which supplies a large part of the gas needed in Ukraine.

As a result of these strained relations, Kiev has been trying to tap other energy sources notably in oil-rich Libya.

Source: Press TV

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Sunday, April 13, 2008

Polish-Ukrainian Relations: The Road To NATO

WARSAW, Poland -- Ukrainian Defense Minister Yuriy Yekhanurov signed a deal on military cooperation with Polish Defense Minister Bogdan Klich last week at the end of a two-day visit to Warsaw.

Polish Defense Minister Bogdan Klich

Klich assured Yekhanurov that Ukraine had Poland's backing in its bid for NATO and EU membership and offered assistance in achieving this goal as part of the agreement.

"Since Ukraine regained its independence [in the 1990s] it has been the most important partner in the region for Poland," said Klich. "Even changing governments could not change that," he added.

Speaking after last week's meeting Klich said, "Ukraine asked Poland to help it to get into NATO and we naturally agreed." The agreement includes plans to modernize Ukraine's army and bring it in line with NATO's requirements. "Poland has also offered internship programs for Ukrainian Ministry of Defense employees with training on NATO's structure and how it operates," he added.

Yekhanurov explained, "An advisor from Poland's Defense Ministry will spend some time in our Ministry to advise us on the route to NATO. There are already such advisors working for us from France and Germany. They know how [NATO] works and what is waiting for us after we join, but they do not know what Ukraine should do before it joins NATO."

Despite its desire to one day join NATO, Ukraine has not yet been issued a Membership Action Plan (MAP), which would assure its future membership. However, the Ukrainian government expects to receive its MAP in December.

Aside from the upgrades needed to its army, Ukraine has two major hurdles to overcome. First of all, the government must reverse public opinion - just one-third of the populace supports the country's NATO membership plan at the moment. And it must placate Russia, which is also heavily opposed.

"We will talk with Russia, but everybody has to understand that Ukraine has its own raison d'Etat, which will be implemented," said Yekhanurov.

Source: Warsaw Business Journal

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Ukraine Accuses Russia Of Meddling In Internal Affairs

KIEV, Ukraine -- Kiev accused Moscow Saturday of meddling in its internal affairs, a day after Russia's armed forces chief warned of military steps in reaction to Georgia's and Ukraine's desire to join NATO.

Ukraine's Foreign Ministry

"The declarations of high Russian officials have an openly anti-Ukrainian nature, questioning the territorial integrity of Ukraine and constitute meddling in the internal affairs" of the country, the foreign ministry said in a statement.

On Friday, Russia's armed forces chief General Yury Baluyevsky was quoted by Russian media as saying Moscow "will take action aimed at guaranteeing its interests close to its borders."

"It will not only be measures of a military character. There will be other measures," Baluyevsky warned.

Earlier this month, NATO turned down Georgia's and Ukraine's applications for Membership Action Plans - a stepping stone to joining the alliance - but did say both would eventually become members.

Nonetheless, the delay was greeted as a victory by Moscow, which staunchly opposes the two Western-oriented neighboring countries joining the alliance.

Moscow sees the expansion of NATO and the deployment of a U.S. anti-missile shield in central Europe as threats to its security.

Source: AFP

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Saturday, April 12, 2008

World Champion Boxer Vitali Klitschko Visits U.S. To Discuss His Run For Mayor Of Kiev

NEW YORK, NY -- On the heels of President Bush's visit to Ukraine and Russia, Vitali Klitschko, the honorable world champion boxer under the WBC division, is visiting the United States in anticipation of his run for Mayor of Kiev, Ukraine.

Dr. Vitali Klitschko

It has long been understood that Ukraine is a strategically significant country for the U.S. and our national security.

Mr. Klitschko's visit to the U.S. affirms that and also represents a step in the right direction for you Ukraine, a country on the cusp of modernization, true democracy, and a free market system.

Klitschko submitted documents on March 31st to the Regional Voting Committee for candidacy registration to run for the Mayor of Kiev.

His goal is to form a professional and dependable governing structure, which will be in charge of strategic development of Kiev and lives of its residents.

Klitschko was registered for a candidacy to run for the Mayor of Kiev by the Regional Voting Committee on the April 11th.

"I know that I will be involved in a hard battle on all the frontiers," said Klitschko. "But everyone needs to understand that this battle for the position of Mayor will be between two candidates only - Vitali Klitschko and Leonid Chernovetsky."

Klitschko is considered the most favorable candidate from the democratic coalition to run for Mayor on the May 25th election.

According to the polls, 25.2% of the people said they will vote for Klitschko and 24.9% for Chernovetsky.

Vitali Klitschko will be in New York on April 14th and D.C. on April 16th and 17th for meetings.

Source: PRNewswire

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Ukraine Premier Fails To Ditch Gas Trader

KIEV, Ukraine -- Rosukrenergo, the controversial Swiss-registered natural gas trader co-owned by Gazprom and two Ukrainian businessmen, will retain its position in the multi-billion-dollar business of supplying Ukraine, officials in Kiev announced on Friday.

Yulia Tymoshenko was not successful in removing Rosukrenergo.

Yulia Tymoshenko, Ukraine’s premier, had pledged to remove Rosukrenergo, whose role she has described as murky, but the company will hold on to its position as Gazprom’s choice to be the monopoly supplier of gas for Ukraine.

A spokesperson at Naftogaz, the Ukrainian state energy company, said an agreement was signed this week with Rosukrenergo on the supply of nearly 50bn cubic metres of gas at a price tag of $179.50 per 1,000 cubic metres, an increase from last year’s $130 rate.

“This is a compromise, but a victory considering the circumstances,” said Oleksandr Hudyma, an energy adviser to Ms Tymoshenko.

Officials at Rosukrenergo declined to comment, and refused to say whether their company would remain a competitor for other Gazprom export arms in the lucrative business of supplying consumers in Europe by pumping gas through Ukraine.

Officials at Naftogaz said further agreements still needed to be signed on this and other issues.

The agreement signed this week follows a standoff earlier this year that threatened to dent supplies to Europe as during a 2006 price dispute. Europe receives a quarter of its gas from Russia, with the lion’s share being pumped through Ukraine’s vast pipeline system.

This year, supplies to Ukraine were reduced by about 50 per cent; Europe was not affected.

Rosukrenergo is 50 per cent owned by Gazprom. Stakes of 45 per cent and 5 per cent belong to Ukrainians Dmytro Firtash and Ivan Fursin.

Through negotiations with Gazprom, Ms Tymoshenko’s government managed to remove a middleman company half-owned by Rosukrenergo from its position as monopoly importer of gas to Ukraine and supplier to industry.

In doing so, she provided a fresh lease on life to the bankruptcy-troubled Naftogaz, which will now control all imports and resell gas on the domestic market to other traders, including a Gazprom affiliate.

Referring to Gazprom’s decision to hold on to Rosukrenergo as supplier to Ukraine, Mr Hudyma said: “This is foremost a problem for the Russian side now.”

“Buying gas directly from Gazprom would be the transparent option, but we can’t twist Gazprom’s hands. They decided to keep hold of these shadowy schemes; Ukraine has let go of them,” he added.

A Gazprom official said on condition of anonymity that long-term contracts signed with Rosukrenergo and a complicated gas debt situation involving Ukraine complicated efforts to remove middlemen this year.

Both countries are still engaged in tense price negotiations for 2009 following warnings this year from central Asian producers that their export prices would sharply rise. Ukraine is heavily dependent on gas from central Asian producers which is resold by Russia.

“In future talks we will seek to convince Gazprom to remove all middlemen,” Mr Hudyma added.

Source: Financial Times

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EU Adds Airlines From Congo, Ukraine To Safety Blacklist

BRUSSELS, Belgium -- The European Union on Friday added Ukraine Cargo Airways and Congo's Hewa Bora Airways to its blacklist of airlines banned from flying in the EU.

An Ilyushin Il-76TD belonging to Ukraine Cargo Airways

More than 150 airlines are on the list, including all those from Congo, Indonesia, Equatorial Guinea, Kyrgyzstan, Liberia, Sierra Leone and Swaziland.

The updated list means three Ukrainian carriers are now banned.

"This is a strong signal the commission is sending to the authorities of Ukraine inviting them to strengthen enforcement of the safety standards," said European Commission spokesman Michele Cercone.

He added that the EU was monitoring efforts of Iran's Mahan air, TAAG Angolan Airways and Garuda of Indonesia to improve safety, but said more was needed before they could be taken off the list.

The EU-wide list was created in 2006 as part of a broader effort to improve passenger safety.

Airlines can be removed from the list if they meet international safety standards and pass inspection by European experts.

Source: Kyiv Post

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Friday, April 11, 2008

Commentary: Did Ukraine And Georgia Lose A NATO Battle, Or The War?

PRAGUE, Czech Republic -- The general consensus following the recent NATO summit was that Georgia and Ukraine fell victim to a power struggle within the alliance between the United States and "new Europe" on one side, and Germany and France on the other.

Solana's assessment contains the bitter truth: that neither country is ready for NATO or the EU.

Unlike the fallout between "old Europe" and the United States over Iraq in 2003, however, this split was said to be about "realpolitik" -- a hard-nosed defense of what Europe perceives as its own interests.

On this view, France and Germany and most of western continental Europe apparently decided that offering Ukraine and Georgia Membership Action Plans (MAPs) would needlessly antagonize an increasingly assertive Russia.

There was an element of gloating in the reaction of the French media to the news that U.S. President George W. Bush had failed to impose his will on the rest of the allies. The daily "Le Monde" ran its summit story on April 4 under the headline "U.S. Thwarted By Europeans Over NATO Enlargement," and "Le Figaro" chimed in with "Sarkozy And Merkel Impose The Voice Of Europe."

The German media were less willing to succumb to self-congratulatory chest thumping and were trying to make sense of the long-term impact of the developments. Thus "Die Welt" appeared almost pensive with its April 4 headline "Self-Conscious Europeans." In "Handlesblatt," correspondent Eric Bonse mused that "the exciting question now is whether [the French and German] 'No' at Bucharest was a one-off veto or if it heralds a shift of power within NATO."

A subtler interpretation was offered to the European Parliament's foreign affairs committee on April 8 by EU foreign-policy chief Javier Solana. A former NATO secretary-general who sat in on all Bucharest meetings as an invited guest, Solana told EU deputies to view the Bucharest summit and the meeting between Russian President Vladimir Putin and Bush a day later as two sides of the same coin. As a result of both meetings, he said, NATO and the EU "can look with optimism [and] constructive realism on the big issues of a strategic nature which are important to us" -- instead of facing a "vacuum" -- when it comes to various arms-control treaties, some of them moribund, signed with Russia.

In December, Russia suspended its participation in the Conventional Forces in Europe (CFE) Treaty, which placed limits on troop levels and conventional weaponry between the Atlantic and the Urals.

In announcing its decision, Moscow said the Cold War-era treaty had "ceased to respond to modern European realities and to meet our security interests." But the major sticking point was Russia's unhappiness over NATO's refusal to ratify the treaty's successor, CFE-II, until Moscow made good on its commitments to withdraw its troops and materiel from Georgia and Moldova. The lack of ratification of CFE-II by all NATO countries, the Kremlin argued, left Russia vulnerable because the Baltic states could possibly harbor troops on its western border.

In Bucharest, Putin indicated that Russia may be willing to reconsider its position on the CFE. Just days later, during his talks in Sochi with Bush, he said that differences remained on finding a replacement for the START nuclear-arms-control treaty, which will expire in 2009, but that progress had been made.

Another key moment will come in 2010, when the Nuclear Nonproliferation Treaty (NPT) will come up for review. The United States and its allies will need the cooperation of Russia to face down a threatened revolt by nonaligned states who argue that the nuclear powers contravene the terms of the treaty by not working to reduce their hoards of nuclear weapons.

Looking at the tea leaves, Ukraine and Georgia must see that their hopes of joining NATO have been diluted.

This is because the pledges given during the Bucharest summit amount to little, if anything. Essentially, NATO's promise simply rephrased part of NATO's charter, which states that "[t]he parties may, by unanimous agreement, invite any other European State in a position to further the principles of this treaty and to contribute to the security of the North Atlantic area to accede to this treaty."

Georgia and Ukraine may have been recognized as European countries, but they still lack a specific MAP toward NATO membership and a unanimous decision by the allies to accept them. In the end, they have promises on which they can't necessarily cash in.

The European allies' strategic perception of Georgia's and Ukraine's situations is unlikely to change in the foreseeable future. Russia will in all likelihood remain steadfastly opposed to their being given MAPs. Solana's interpretation of the state of affairs suggests that, at the very least, both countries will have to wait until the "big pillars" of European security -- strategic arms-control treaties -- have again been secured.

Much has been made of Georgian and Ukrainian leaders' putative joy at receiving promises of eventual NATO membership. The government in Tbilisi faces parliamentary elections later this month and could scarcely afford to be seen as thwarted in its ambition to move closer to NATO. Ukraine's political elites are split down the middle over NATO membership, and President Viktor Yushchenko must avoid appearing to falter in his leadership.

Solana's somber assessment of where both countries stand, delivered on April 8, contains the bitter truth: that neither country is ready for NATO or the European Union. "Ukraine," he said, "does not have a political system that is at the level of the aspirations of some [of its] leaders," a necessary condition for joining NATO and/or the EU. "It lacks political solidity."

Georgia, on the other hand, must understand it will have to resolve its internal conflicts by peaceful means, Solana said. This comes barely a week after the separatist leadership in Abkhazia rejected an all-or-nothing compromise offer from Tbilisi. Privately, EU diplomats say Sukhumi appears to have no intention of rejoining Georgia.

There are wider "structural" implications to the Bucharest decisions that go beyond the immediate fates of Ukraine and Georgia, affecting their closest backers in NATO and the EU -- and thereby, by extension, further serving to undermine their positions with regard to both organizations.

First, there is the undeniable shadow of Russia hanging over the Bucharest decision. While it does not amount to a "veto," Moscow's muscle-flexing has for the first time had an observable effect on NATO decision making.

Second, the United States appears more vulnerable within NATO than at any time in the past. A NATO in which the will of the United States is no longer law is a terrifying prospect for most of its new members, not to mention Ukraine and Georgia.

And finally, when French Prime Minister Francois Fillon said that giving MAPs to Ukraine and Georgia "is not the correct response to the balance of power in Europe, and between Europe and Russia," he did something rather more profound than simply acknowledge Moscow's importance.

Whether he used the term "balance of power" wittingly or unwittingly, Fillon resurrected a concept that many in Europe thought had been buried for good. Solana's right-hand man, former British diplomat Robert Cooper, is the best-known and most eloquent proponent of the view (argued in his 2003 book "The Breaking Of Nations") that the bloc's unique art of pooling member-state sovereignty has forever laid to rest the ghost of nation-state rivalries and the attendant constant threat of war on the continent.

Source: Radio Free Europe

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Russia Army Vows Steps If Georgia, Ukraine Join NATO

MOSCOW, Russia -- Russia will take military and other steps along its borders if ex-Soviet Ukraine and Georgia join NATO, Russian news agencies quoted the armed forces' chief of staff as saying on Friday.

Russian General Yuri Baluyevsky

"Russia will take steps aimed at ensuring its interests along its borders," the agencies quoted General Yuri Baluyevsky as saying. "These will not only be military steps, but also steps of a different nature," he said, without giving details.

Russia is opposed to NATO plans to grant membership to ex-Soviet Ukraine and Georgia, saying such a move would pose a direct threat to its security and endanger the fragile balance of forces in Europe.

Russian Foreign Minister Sergei Lavrov said earlier this week that Moscow will do everything it can to prevent the two countries, run by pro-Western governments, from becoming NATO members.

President Vladimir Putin has said that if NATO military installations ever appear in Ukraine, Moscow would have to target its missiles at the country.

At a summit in Bucharest this month, NATO members turned down requests from Georgia and Ukraine to be granted a Membership Action Plan, which would have set them on the road to membership.

But under pressure from Washington, one of the strongest advocates of enlargement in the alliance, NATO gave a commitment that the two countries would be allowed to join eventually.

Asked to respond to the Russian general's comments, a NATO spokeswoman in Brussels said any European democracy could apply for membership of the alliance. "This is nothing new and no third country or party has a right to veto," she said.

"In Bucharest, NATO heads of state and government decided Georgia and Ukraine would not be granted Membership Action Plans at this stage, but membership of those two countries is not a matter of if but when."

Russian news agencies quoted Baluyevsky as telling reporters that it was premature to talk about Georgia and Ukraine joining NATO anytime soon. "This is not the end of the day," he said. "We will live and see."

Source: AAP

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Russian Officials Keep Up Tough Talk On Ukraine

PRAGUE, Czech Republic -- "The Moscow Times" reported on April 8 that President Vladimir Putin said at the meeting of the NATO-Russia Council in Bucharest that Russia will work to break up Ukraine if that country joins NATO.

Muscle-flexing Russian ex-President Putin is maintaining pressure on Ukraine and NATO.

Citing a report in the daily "Kommersant" from April 7, "The Moscow Times" suggested that an unidentified foreign delegate described Putin as "losing his temper" at the meeting and saying to U.S. President George W. Bush: "do you understand, George, that Ukraine is not even a state!"

Putin reportedly claimed that Russia will encourage the separation of eastern Ukraine and the Crimea from Ukraine if that country joins NATO.

"The Moscow Times" added that "Kremlin spokesman Dmitry Peskov, who accompanied Putin at the summit, said he did not hear Putin's purported remarks about Ukraine and could not confirm the report."

On April 8, the daily "Komsomolskaya pravda" quoted Foreign Minister Sergei Lavrov as saying that the United States addressed some of Russia's fears regarding missile defense at the Bush-Putin summit in Sochi on April 6 but "where NATO's expansion is concerned, however, I cannot say I've noticed any indication of readiness to allay our fears."

On April 7, Interfax quoted State Duma Speaker and Unified Russia leader Boris Gryzlov as saying that Russia will "review" its relations with any CIS member state that joins NATO.

He noted that it is the business of other states to decide whether to join the Atlantic alliance but the business of Russia to decide how to react.

On April 8, Interfax quoted Russian Ambassador to Ukraine Viktor Chernomyrdin as saying that any decision by Ukraine to join NATO will lead to unspecified "consequences" in its relations with Russia.

Chernomyrdin, who was a Soviet-era gas specialist, served as Russian prime minister from 1992-98.

He made his remarks on Ukraine at a reception to mark his 70th birthday and to present his book "We Tried Our Best."

Many remember him for his quote from 1993 that "we wanted the best, but things turned out like always."

Source: Radio Free Europe

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Thursday, April 10, 2008

NATO Demands Explanation From Russian Foreign Minister Lavrov

BRUSSELS, Belgium -- NATO demands explanations from Sergei Lavrov, Foreign Minister of Russia, regarding his statement about Georgia and Ukraine.

NATO Spokesman James Appathurai

NATO Spokesman James Appathurai told a news conference that the Russian side had not furnished any explanation about its intention to undertake “all possible measures” to prevent Ukraine’s and Georgia's further integration into NATO.

According to him, Georgia and Ukraine will be members of the alliance and the decision will be taken by all NATO member countries.

Sergei Lavrov, Foreign Minister of the Russian Federation, stated in his interview with Echo Moskvy that Moscow will take action to prevent Georgia and Ukraine’s accession to NATO, Prime News reports.

Source: Armenian News

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Olga Kurylenko Credits Her Poverty-Stricken Childhood For 'Bond Girl' Success

LONDON, England -- Her childhood might have gone in struggling for survival, but now, the new Bond girl Olga Kurylenko has the whole world under her feet.

Ukrainian bombshell Olga Kurylenko, who plays the beautiful but feisty Camille, during a scene in the new James Bond film Quantum of Solace being shot in Panama City, Panama.

The 28-year-old stunning Bond babe, who was raised in the poverty and oppression of the Soviet Union, credits her fight and struggle in Ukraine for making her what she is today.

"Maybe the fact I had to fight and struggle in the Ukraine is how I succeeded. You can't sit around. I still have that survival instinct. It's great now to support my family, my mum, and to help out," The Sun quoted her, as saying.

Olga revealed that initially she was afraid that she would not bag the Bond girl role, for director Marc Forster appeared unimpressed with her at the audition.

"When Marc looked at me he was so blank. I told my agent, 'Forget about it'. I was so sad," she said.

However, she was eventually chosen for the role, to which she described as the best Christmas gift she ever received.

"It was Christmas Eve I found out I got the part. I was sitting with my friends, it couldn't have been a better present," she said.

Source: New Kerala

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Ukraine Parliament Ratifies WTO Membership Agreement In Key Vote

KIEV, Ukraine -- Ukraine's parliament on Thursday gave its approval to entering the World Trade Organization, giving a decisive victory to reform politicians in the former Soviet republic.

Ukrainian Parliament building

The national legislature the Verhovna Rada in a rare show of agreement between its pro-Europe and pro-Russia factions, voted 411 in favour of the measure, out of 449 legislators present.

The only opponents of WTO membership was the minority Communist party and a few left-wing independents, who abstained from casting ballots.

The vote was a dramatic success for the thin pro-Europe majority currently in control of Ukraine's government, which for months had failed to push approval of the WTO through the legislature, in the face of the pro-Russia opposition.

Ukrainian President Viktor Yushchenko, the leader of the pro-Europe faction, had repeatedly promised he would sign the bill into law as soon as parliament approved it.

Ukraine began the application process to join the WTO in 1992. The WTO formally offered Ukraine membership in February.

The Thursday Ukrainian parliament vote thus removed the last practical barrier to Ukrainian membership in the WTO, a top goal of the Yushchenko administration since coming to power in 2005.

The terms of the agreement just approved by parliament stipulate Ukraine will become a full-fledged WTO member within one month of Yushchenko's signing the WTO bill into Ukrainian law.

WTO officials had said that they were confident the WTO governing board would give final approval to Ukrainian membership no later than July 4, provided Ukraine's parliament approved the treaty and Yushchenko signed off on the legislation.

Ukraine will pay the WTO some 420 million dollars in annual membership fees, the Interfax news agency reported.

Ukrainian membership in the WTO is widely expected to expand access to international markets for Ukrainian industrial producers, but the degree of probable expansion is disputed by economists in the country.

Ukraine's economy is heavily dependant on export, particularly of metals, chemicals, machinery, and agricultural products. Many of its retail markets are protected by tariff barriers which, once Ukrainian WTO membership becomes a reality, must be removed from the books.

Some observers have questioned whether WTO membership would increase Ukrainian exports substantially, as the most valuable potential market still practically closed to Ukrainian products - Europe - will remain inaccessible in the near future due to European Union excise barriers.

But Ukrainian pro-government spokesmen have argued WTO membership will make retail goods substantially cheaper in Ukraine due to increased domestic competition - a critically-needed development given the country's current 17.3 per cent annual inflation.

Trade implications aside, Ukraine's Foreign Ministry has long been keen on WTO membership as any WTO member may veto a new applicant: an ability Kiev diplomats hope would give leverage against Russia, a WTO non-member targeting Ukraine for repeated energy price hikes in recent years, because of worsening relations between Kiev and Moscow.

Source: DPA

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Ukraine’s Iron Lady: Glamor, Hairstyle And Fierce Political Will

KIEV, Ukraine -- On a typical day she may chair a Cabinet meeting, visit coal miners or fly to Brussels for a summit. But before she steps out of her home, she sculpts her rich blond hair into a peasant­style braid. Only then does she become the prime minister every Ukrainian can instantly identify.

Yulia Tymoshenko with US President George Bush at a meeting on April 1, 2008.

The hair is the high point of Yulia Tymoshenko’s glamorous image. But she also has a steely, in­your­face resolve. It made her the heroine of the 2004 Orange Revolution that brought democracy to her country, and four months into her second premiership she continues to fascinate Ukrainians.

To her adoring supporters she’s simply “Yulia,” selfless fighter for democracy.

Her critics say she’s anything but humble and honest, seeing her as a corrupt and power­hungry opportunist. She was accused of enriching herself in corrupt energy deals in the 1990s, which earned her the nickname of “gas princess,” and was briefly jailed seven years ago on money­laundering charges. (The charges, which she claims were politically motivated, were dropped.)

Her tenacity leads some to call her the Iron Lady, and Tymoshenko herself looks to Margaret Thatcher as a role model. Nowadays, however, Europe is getting used to women leaders ­ German Chancellor Angela Merkel, Finnish President Tarja Halonen, Moldovan Prime Minister Zinaida Greceanii and Borjana Kristo, president of Bosnia­Herzegovina.

But none rules a country as divided as Ukraine, a former Soviet republic torn between its Europe­friendly west and pro­Russian east.

In that tug­of­alliances, 47­ year ­old Tymoshenko is with the pro­Europeans. She embraces democracy and Western ways with gusto, promising to turn Ukraine into a prosperous, law­abiding European nation. She put her daughter, Yevheniya, 28, through a British school, and says her motto is the Adidas slogan, “Impossible is Nothing.”

“Ukrainian politicians must solve impossible problems if they want to see the country happy,” she explained in a recent interview with a Ukrainian newspaper.

Born in the eastern Ukrainian city of Dnipropetrovsk, Tymoshenko earned an economics degree and began her career as a financial manager at a machine­building factory in the Soviet era.

The “Gas Princess” nickname dates to when she and her husband, Oleksandr, 47, ran a fuel company that eventually became United Energy Systems, the country’s top gas dealer in the mid­1990s, buying natural gas from Russia and reselling it to local and foreign consumers.

Critics accuse Tymoshenko of illegally pocketing huge profits from her Unified Energy System deals – and of evading taxes – suspicions that led to her brief imprisonment. Pavlo Lazarenko, who was prime minister and Tymoshenko’s ally at the time, was convicted of fraud and money laundering in the United States in 2005.

Tymoshenko denies all the accusations, saying her company in fact helped energy and cash­starved Ukraine survive in those chaotic years.

As prime minister, Tymoshenko has become the enemy of the gas traders which, her critics say, are not unlike the one she herself ran in the mid­1990s.

She became an internationally recognized political figure in 2004 following a flawed presidential election, when she rallied hundreds of thousands of demonstrators in Kyiv’s main square demanding that reformist Viktor Yushchenko be declared the winner over a pro­Russian rival.

The Gas Princess became the Orange Princess, and to her most ardent fans, Ukraine’s Joan of Arc.

Yushchenko won a court­ordered re­vote and appointed Tymoshenko as his prime minister in early 2005, but fired her after only seven months in office in a bitter feud.

Tymoshenko didn’t give up. Last December she managed a remarkable political comeback, regaining the premiership when her party won the second biggest share of seats in parliament and reunited with Yushchenko’s team in a coalition government.

“She is an incredibly driven person,” said Ivan Lozowy, a Kyiv political analyst. Western financial analysts praise her anti­corruption efforts. Her drive to clean up the gas trade with Russia plays well with the public, and she has gained further popularity with a program to compensate Ukrainians for the savings they lost due to skyrocketing prices that followed the Soviet breakup. But her measure is stoking inflation.

Meanwhile, she is once again at odds with Yushchenko. She is attacking his latest gas deal with Russia, while he is accusing her of lying and scheming to increase her power. Their power­sharing deal is very shaky.

Tymoshenko says she is confident she will triumph. “We, women in politics, find it difficult,” she said recently, “but we feel confident because our position is right.”

Source: Kyiv Post

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Outside View: Ukraine Fears Of Nuke Safety

MOSCOW, Russia -- Global utility giant Westinghouse Electric Co. and Ukraine's power utility Energoatom have signed a deal to supply Ukraine's nuclear power plants with fuel from 2011-2015. Under the contract, concluded on March 31, 630 fuel assemblies will be loaded inside three local reactors.

Nuclear fuel rods

"This contract represents a major commitment from both Westinghouse and Ukraine in ensuring that alternative and competitive nuclear fuel supplies are available to the benefit of Ukraine's nuclear energy provider and, ultimately, its citizens," Westinghouse said in a release.

Both companies signed the contract in the run-up to the visit by U.S. President George W. Bush to Ukraine.

However, public concerns are reflected in the following joke that became popular during the visit: "The U.S. President thanked the people of Ukraine for their brave decision to agree to test the substandard and more expensive American fuel inside the country's nuclear reactors."

President Bush praised expanded U.S.-Ukrainian nuclear cooperation that could jeopardize the safety of national nuclear power plants.

Ukraine is currently the only country that is planning to load U.S. fuel into its Russian-designed reactors. Nonetheless, Kiev had some misgivings about the contract because it does not guarantee that substandard Westinghouse fuel is compatible with Russian reactors.

Some reservations imply that Ukraine could annul the contract, unless it is allowed to use Westinghouse fuel on a commercial basis and in case of technical failures.

In January 2006, Ukrainian President Viktor Yushchenko announced plans to initiate nuclear fuel production in the country, which relies heavily on natural gas supplies from Russia.

The 15 reactors at four Ukrainian NPPs use Russian nuclear fuel, generating over 50 percent of the country's electricity. This is why Kiev has been trying to solve this mind-boggling problem at any cost.

Disrespect for nuclear safety standards, as well as insufficient knowledge of reactor operations and nuclear fuel specifics, have resulted in 50 nuclear accidents all over the world, proving that NPP personnel has no right to violate such standards.

Although the more mature nuclear industry has experienced various disasters, the Kiev establishment wants to disregard nuclear risks once again. By staking on incorrect diversification, Ukrainian authorities now want to try out Westinghouse fuel assemblies as an alternative to their Russian equivalents.

In 2005, six U.S. fuel assemblies were loaded inside the core of the South Ukrainian NPP's third reactor. At that time, the U.S. government financed their delivery and provided the required technical assistance.

Although there were plans to load 42 more fuel assemblies in 2006, the project had to be mothballed for 18 months due to U.S. financial problems.

But Ukraine remained undeterred. The country's Fuel and Energy Minister Yury Prodan recently ordered Energoatom to sign an expensive contract for the delivery of fresh nuclear fuel from Westinghouse.

The American company is trying to compete with Russian nuclear fuel monopoly TVEL and also wants to have a close brush with Italy's largest power company Enel, which owns a 66 percent stake in Slovenske Elektrarne, Slovakia's utility provider. Although the Westinghouse reputation is not very good, the company is promoting its fuel on a non-tender basis.

However, the Russian-built Loviisa NPP in Finland has refused to purchase U.S. fuel because of its inferior technical and economic parameters. Another NPP in Temelin, the Czech Republic, had to remove Westinghouse fuel ahead of schedule because it did not function properly inside its Soviet-designed reactors.

The Austrian Mothers organization, which is concerned about dangerous experiments at the nearby Temelin NPP, has triggered massive protests in the country.

But Ukraine stubbornly ignores other countries' experience and seemingly wants to learn through its own mistakes.

At the signing ceremony, some officials noted the need to respect market regulations and free competition.

TVEL Vice President Vladimir Rozhdestvensky said his company hailed the Ukrainian side's commitment to free-market principles.

The Ukrainian media reacted sharply to this statement, claiming that Russia wanted to charge exorbitant nuclear-fuel prices.

TVEL spokesman Alexei Pilko told RIA Novosti that the company advocated equal rules of the game for everybody. He said Energoatom, which was ready to pay market prices for Westinghouse fuel, should not expect lower prices from TVEL. Pilko said the company was surprised by Ukraine's approach, which had nothing to do with European commercial principles.

Previously, Moscow supported all bilateral cooperation plans in the sphere of nuclear fuel supplies. TVEL proposed establishing a joint venture that would manufacture fuel-assembly components on Ukrainian territory, so that all fuel could go to Kiev. Under another proposal stipulating the use of Ukrainian uranium, Kiev would have paid nothing for feedstock deliveries.

But TVEL is also quite happy about the proposed free-market competition and global prices.

Ukraine, which should have held a tender for the best nuclear-fuel variety, is playing dangerous political games that could jeopardize the safety of its nuclear reactors.

Source: UPI

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Ukraine: EU Official Says Political System Holds Kiev Back

BRUSSELS, Belgium -- Ukraine's troubles in integrating with the West can be attributed to a lack of "political solidity."

EU foreign-policy chief Javier Solana

That's according to EU foreign-policy chief Javier Solana, who pointed to the deep divisions within Ukraine over its government's attempts to join NATO and, eventually, the European Union.

Addressing the Foreign Affairs Committee of the European Parliament in Brussels, Solana said NATO rejected Ukraine's application for a Membership Action Plan during its annual summit this week because the country is not sufficiently mature politically.

"Ukraine does not have a political system which is at the level of the aspirations of some [of its] leaders to be part of international organizations," he said. "That has been the response that, in a way, has been given by NATO."

Solana said the message sent to Ukraine at the April 2-4 summit in Bucharest was that its leaders must act in a "much more constructive manner within the country."

He also noted that Ukraine's economic growth, while robust, does not fully meet the country's potential. This he attributed to a "lack of political solidarity, political solidity of the leadership"

"We are helping as much as we can," Solana said. But he added that to reward Ukraine with entry into Western institutions such as NATO before Kyiv shows that it is "doing the job properly, would be too much to ask."

Source: Radio Free Europe

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Wednesday, April 09, 2008

Russia Could Claim Crimea If Ukraine Joins NATO - MP

MOSCOW, Russia -- A senior member of the Russian lower house of parliament said on Wednesday that Russia could claim the Crimea if Ukraine was admitted to NATO.


NATO decided at its recent summit in Romania not to offer Ukraine and Georgia the chance to join a program that would have put them on the track to join the military alliance, but promised that the decision would be reviewed in December.

The ex-Soviet republics had received strong U.S. backing for their bids.

"If Ukraine's admission to NATO is accelerated, Russia could raise the question of which country the Crimea should be a part of," Alexei Ostrovsky, the head of the State Duma committee on CIS affairs, said in a radio interview.

"The Russian Federation has legal grounds to revise agreements signed under Khrushchev."

Former Soviet leader Nikita Khrushchev, who grew up in Ukraine, made the Crimean Peninsula - a territory of 26,100 sq km washed by the Black and Azov seas - part of the Ukrainian Soviet Socialist Republic in 1954. The peninsula had formerly been a part of the Russian Soviet Socialist Republic.

The Crimea, now an autonomous region within Ukraine, is a predominantly Russian-speaking territory. Since the 1991 breakup of the Soviet Union, the Crimea has unsuccessfully sought independence from Ukraine.

A 1994 referendum in the Crimea supported demands for a broader autonomy and closer links with Russia.

The Russian Black Sea Fleet retains a Soviet-era base in Sevastopol in the Crimea. Disputes between Russia and Ukraine over the lease of the base are frequent.

However, Ostrovsky admitted that Ukraine was unlikely to join NATO any time soon, saying that the Ukrainian president, prime minister and parliamentary speaker were the only people in the country seeking membership of the Western military alliance.

His comments referred to recent opinion polls that have indicated that about 70% of the population is opposed to joining NATO.

NATO's ongoing expansion, as well as Washington's missile plans for Europe and an ongoing dispute over the recognition of Kosovo by the U.S and the majority of EU states have plunged Moscow's relations with the West to a post-Cold War low.

Source: RIA Novosti

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Ukrainians Differ On NATO Summit Results

KIEV, Ukraine -- Both President Viktor Yushchenko and opposition leader and former Prime Minister Viktor Yanukovych have claimed that the April 2 to 4 Bucharest NATO summit’s decision on Ukraine was a “victory.”

Ukraine's President Viktor Yushchenko (L) and NATO Secretary-General Jaap de Hoop Scheffer arrive for the joint news conference at the NATO summit in Bucharest.

It was a victory for Yushchenko, because NATO members promised that Ukraine would definitely be admitted to NATO one day.

It was a victory for Yanukovych, whose Party of Regions opposes NATO membership, because the summit did not approve a Membership Action Plan (MAP) for Ukraine.

Domestic observers and the media have been considerably less certain about these interpretations than the two leaders.

‘This is an exceptional victory for Ukraine,” said Yushchenko after it had been reported on April 3 that no MAP would be approved for Ukraine but that NATO agreed in principle to admit Ukraine in the future.

Speaking after a NATO-Ukraine Commission meeting on April 4, Yushchenko stressed that “a prospect of membership” was shown. “This is the essence. You should read all the rest between the lines, which is politics of compromise,” he said.

Interviewed on television on April 6, Yushchenko noted that NATO membership, not a MAP per se, is his government’s goal. “The statement by all [NATO] countries that Ukraine will be a NATO member exceeded our expectations,” said Yushchenko, adding that this was “a surprise” to him.

Yushchenko dismissed a reminder by the interviewer that opinion polls showed overwhelming opposition to NATO membership among Ukrainians.

Once Ukrainians had enough information about NATO, they would accept it, he argued, citing the results of an unnamed opinion poll in which 95 percent of Ukrainians said they wanted to have more information about NATO.

Yushchenko and Yanukovych agreed earlier that Ukraine could join NATO only after a nationwide referendum on the issue. Yushchenko estimated that such a referendum could be held in two years.

Yushchenko believes that a MAP will be approved for Ukraine at the NATO meeting of foreign ministers scheduled for December 2008.

Foreign Minister Volodymyr Ohryzko shared the optimism of his boss. He said that a decision on a MAP would be a technical issue. “It can be made by foreign ministers or even ambassadors who are accredited [at NATO headquarters] in Brussels,” he told Channel 5.

Anatoly Zlenko, a former Ukrainian foreign minister, held a different view. He told a round table in Kyiv that Ukraine should not expect a MAP in December, as such decisions are usually taken at NATO summits.

The next NATO summit in 2009 will be co-hosted by France and Germany, which, he recalled, opposed approving a MAP for Ukraine at the summit in Bucharest.

Yushchenko fired the ambassadors to Russia and Germany on April 4, which prompted suggestions that his real assessment of the NATO summit results was more negative than what he said in public.

Germany had been the main opponent of a MAP for Ukraine, and it is widely believed in Kyiv that Berlin acted under the influence of Moscow.

Yanukovych praised the position of France and Germany, addressing a rally of his supporters in Kyiv on April 3. He said that Ukraine should participate in creating “a new European security system, which should include blocs and neutral states like Ukraine,” rather than join NATO.

In a statement released on April 4, Yanukovych said that NATO’s refusal to offer a MAP to Ukraine was a victory for the opposition. He denounced the government for what he described as “attempts to drag this country into NATO behind the citizens’ backs, without even asking the people’s opinion.”

Communist Party leader Petro Symonenko, who is an opponent of NATO, shared Yanukovych’s view that the summit decisions on Ukraine were a victory for the opposition. He also denounced Yushchenko for his recent promise to increase Ukrainian presence from three to eight servicemen in the US-led mission in Afghanistan, and he called for Yushchenko’s impeachment.

Pessimism has apparently been the dominant mood among Ukrainian experts. “It was the first time that NATO has yielded to pressure from a third country [Russia],” retired General Vadym Hrechaninov told a round table in Kyiv on April 4.

Hrechaninov chairs the Atlantic Council of Ukraine, a pro-NATO think tank. “This concession will affect future relations between Ukraine and NATO,” he predicted. Sociologist Iryna Bekeshkyna of the Democratic Initiatives Foundation believed that Ukraine failed a test for political maturity.

She noted that Ukraine had failed to reform its courts and had been unsuccessful in combating corruption, and that Ukraine’s parliament elected last year was not functioning.

Den, which is one of the most pro-Western Ukrainian dailies and is run by the wife of former Defense Minister Yevhen Marchuk, offered a negative assessment of the NATO summit. “The bitter realism of Bucharest will burden future generations,” it predicted. Den suggested that Russia held too much sway over Germany and France.

Segodnya, a popular pro-opposition daily, called NATO’s decision on Ukraine Yushchenko’s “fiasco.” Another popular daily, Gazeta po-Kievski, opined that “Germany and France slapped Ukraine in the face”.

Source: Eurasia Daily Monitor

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Thursday, April 03, 2008

NATO Divided On Georgia, Ukraine

BUCHAREST, Romania -- France and Germany were poised to thwart a drive by President Bush to place the strategically important Black Sea states of Ukraine and Georgia on track for NATO membership at a tense alliance summit.

Ukraine's President Viktor Yushchenko talks with US President George W.Bush, prior to a meeting to discuss the conflict in Afghanistan, at the NATO Summit conference in Bucharest, Thursday April 3, 2008.

German Chancellor Angela Merkel and French President Nicolas Sarkozy are concerned about provoking a crisis with Moscow, which is vehemently opposed to NATO taking on the two former Soviet republics located on Russia's southwestern borders and across key east-west oil and gas routes.

"I would be happy to be proved wrong but I do not expect MAP for Georgia and Ukraine," said NATO spokesman James Appathurai, referring to the Membership Action Plan sought by the two former-Soviet republics when the summit resumed Thursday.

All 26 allies must agree for the expansion plan to move forward and talks over dinner Wednesday failed to find a breakthrough.

Appathurai announced brighter news for NATO on Afghanistan, saying Sarkozy had offered to send a battalion — about 700 troops — to help U.S. forces in the dangerous eastern region.

That will allow the American troops to move south to Kandahar province. Canada had threatened to pull out its 2,500 beleaguered soldiers there unless they got 1,000 reinforcements from another ally.

Appathurai also said the allies were close to agreement on developing a short range anti-missile shield to complement the strategic defense shield being developed by the United States.

However, he confirmed that only a last-minute deal with Greece would allow Macedonia to join Albania and Croatia in receiving an invitation to join NATO on Thursday.

Without an agreement to invite the Ukraine and Georgia, officials said the alliance would draw up a text offering the prospect of a later membership plan and encouraging them to continue political and military reforms to prepare for joining, but delaying the opening of the formal membership process.

However, pro-Western governments in Ukraine and Georgia are expected to view the snub as a bitter blow and a boost for pro-Russian forces in the two countries.

"A 'no' for Georgia will show those people in the Kremlin who think that by a policy of blackmail, by arrogance and aggression" they can influence NATO's decisions, Georgia's Foreign Minister David Bakradze said earlier Wednesday. "A 'no' will be seen by those people as a victory," he told The Associated Press.

Bush had lobbied for the two former Soviet republics.

"We must make clear that NATO welcomes the aspirations of Georgia and Ukraine for membership in NATO and offers them a clear path forward toward that goal," Bush said in a speech to security experts.

"NATO membership must remain open to all of Europe's democracies that seek it and are ready to share in the responsibilities of NATO membership," he said.

Canada, Britain and new NATO members in eastern Europe agreed, but Germany and France fear that will further harm relations with Russia which are already strained over Kosovo and the U.S. anti-missile plan.

"We are convinced that it is too early to grant both states the action plan status," Merkel said.

Germany and France also pointed to widespread public opposition in Ukraine to the government's application for NATO membership and the ongoing conflicts between the Georgian government and pro-Russian separatist movements in two of its regions.

On the Balkans, Greece insists it will block Macedonia's entry unless its northern neighbor agrees to change its name. Athens says the name of the former Yugoslav republic implies a claim on its northern province also called Macedonia.

"We are running out of time," said Greek Foreign Ministry spokesman Giorgos Koumoutsakos. "It would not be logical that we could give our consent."

NATO Secretary General Jaap de Hoop Scheffer sought to play up the alliance's more modest expansion, telling Bush and the other allies Thursday: "We are going to ensure that the NATO family continues to grow ... Europe must be unified and safe."

Sarkozy's offer on Afghanistan goes someway to meeting Bush's demand for more European troops to join the fight on the frontline against the Taliban and al-Qaida in southern and eastern Afghanistan and means the Canadian troops will stay.

The new French troops and the imminent arrival of 3,200 extra U.S. Marines would give added weight to a "vision statement" the leaders are scheduled to adopt Thursday to confirm NATO's long-term commitment to Afghanistan and attempt to boost flagging public support for the mission in the face of growing Taliban violence.

But leading European allies, including Germany, Italy, Turkey and Spain, are still refusing to send combat troops to the Afghan front lines because of the unpopularity of the war at home.

Bush has spent months trying to persuade Russia that it has nothing to fear from a part of its missile defense shield being based in Poland and the Czech Republic. Bush said NATO was expected to endorse the system, which Washington says is aimed at a possible threat from Iran, not Russia.

Source: AP

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Tuesday, April 01, 2008

Bush Starts Europe Tour In NATO Aspirant Ukraine

KIEV, Ukraine -- US President George W. Bush arrived in Ukraine Monday at the start of a tour to push NATO allies for more support in Afghanistan and to reach a compromise with Russia on defence plans.


US President George W. Bush

At talks scheduled for Tuesday with Ukraine's pro-Western President Viktor Yushchenko, Bush was expected to stress US support for the country's plans to join the NATO military alliance.

Bush will also be "pushing hard" for the alliance to embrace both Kiev and Georgia as potential members during a NATO summit that starts Wednesday, US National Security Advisor Stephen Hadley said.

"We think it's very, very, very important that, Georgia and Ukraine, that we welcome their aspirations to be part of NATO, that we have an active engagement in helping them move in that direction," Hadley said aboard Air Force One as Bush flew to Europe.

"I believe that NATO benefits and Ukraine and Georgia benefit if and when there is membership," Bush said ahead of his visit to Ukraine, where he touched down late Monday evening.

Analysts predicted however that neither country would be allowed to start the formal accession procedure at the April 2-4 meeting of alliance leaders in Romania.

Ahead of Bush's arrival, protesters demonstrated against accession both on Ukraine's politically sensitive Crimea peninsula on Saturday and in Kiev on Monday.

The protests underlined significant opposition to membership in Ukraine and by its giant neighbour Russia, whose president Vladimir Putin has been invited to the Bucharest meeting.

In Kiev, a few thousand protesters on Monday set up tents and hurled abuse at Bush and NATO.

"NATO is war, death and tears," read one banner, while another suggested Yushchenko and Prime Minister Yulia Tymoshenko leave the country.

Amid a delicate patch in relations between Washington and Moscow, Bush is also to hold weekend talks with Putin in Russia.

Moscow-based defence analyst Pavel Felgenhauer said wider strategic considerations meant Georgia and Ukraine would not gain an immediate green light from NATO.

He said Bush was seeking a softening of Russian opposition to US plans to set up missile defence sites in the Czech Republic and Poland, as well as Russian agreement to allow NATO supplies to transit through Russia to Afghanistan.

In part, Bush wants to prove the success of his Republican party's policy on Russia and thus support the Republican candidate John McCain in the US election period, Felgenhauer said.

"It's a grand deal that involves a lot of things outside -- not only Ukraine and Georgia."

On the presidential plane Air Force One, Hadley expressed hope that Bush and Putin would resolve their differences over the missile shield during their weekend talks.

"I think we're moving in a direction... where Russia and the United States could have missile defence as an area of strategic cooperation," he said.

Another theme of Bush's tour is to persuade NATO states to commit more troops for Afghanistan, where failure would be seen as a personal blow.

"Part of our collective mission... for the NATO meeting is to encourage people to take our obligations seriously," Bush said on the subject.

Hadley returned to the theme.

"We've been saying for some time that all of us need to do more in Afghanistan, and I think you're going to see countries coming up and doing more," he told reporters.

Ahead of Bush's arrival here, Ukraine's desire for NATO membership was stressed by Yushchenko's chief spokesman, Alexander Chaly.

"We hope the United States will clearly support our ambition to join the membership action plan," a formal step towards membership, Chaly said.

Georgia's President Mikheil Saakashvili was more strident. He warned NATO against "appeasing" Russia and drew historical comparisons with the appeasement of Nazi Germany, in an interview with The Financial Times daily in Britain.

Several NATO states oppose giving Georgia and Ukraine the go-ahead, notably Germany, which has sought close ties with Putin and Russia's president-elect Dmitry Medvedev.

In Kiev, analyst Vladimir Fesenko said Ukraine would not be deterred by Western hesitancy.

"Ukraine is interested in the process more than the final result... NATO membership is a pretext for integration with Europe," said Fesenko, who heads the Centre for Applied Political Research.

Source: AFP

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