THE ACTION UKRAINE REPORT – AUR – Number 601

“THE ACTION UKRAINE REPORT – AUR”
An International Newsletter
The Latest, Up-To-Date
In-Depth Ukrainian News, Analysis, and Commentary

“Ukrainian History, Culture, Arts, Business, Religion,
Sports, Government, and Politics, in Ukraine and Around the World”

“THE ACTION UKRAINE REPORT – AUR” – Number 601
Mr. E. Morgan Williams, Publisher and Editor
KYIV, UKRAINE, WEDNESDAY, NOVEMBER 16, 2005

——–INDEX OF ARTICLES——–
“Major International News Headlines and Articles”

1. YUSHCHENKO: CURRENT STATE OF UKRAINE’S MEDICAL
SECTOR ONE OF THE MOST DISTURBING PROBLEMS
Average life expectancy in Ukraine ten years lower than in
other European countries. Every month 70 thousand people die.
Radio Address to the Ukrainian Nation
President Victor Yushchenko
Official Website of President of Ukraine
Kyiv, Ukraine, Saturday, November 12, 2005

2. UKRAINIAN PARLIAMENT PASSES THREE WTO-RELATED
LAWS IN FIRST READING
UNIAN news agency, Kiev, in Ukrainian 1502 gmt 15 Nov 05
BBC Monitoring Service, UK, in English, Tue, Nov 15, 2005

3. BRAWL IN UKRAINIAN PARLIAMENT INTERRUPTS WTO VOTE

Associated Press (AP), Kiev, Ukraine, Tuesday, November 8, 2005

4. UKRAINIAN LEADER CONDEMNS COMMUNISTS FOR
BLOCKING WTO-RELATED BILLS
Interfax-Ukraine news agency, Kiev, in Russian 1914 gmt 15 Nov 05
BBC Monitoring Service,UK, in English, Tue, Nov 15, 2005

5. NOT ENOUGH TIME IN 2005 TO SIGN WTO PROTOCOLS
WITH AUSTRALIA AND THE UNITED STATES
USA wants to be the last to sign agreement with Ukraine
Oleksandr Khorolskiy, Ukrinform, Tue, November 15, 2005

6. IN “INFORMAL” COMPETITION WHILE JOINING WTO
RUSSIA AND UKRAINE FACING DIFFERENT PROBLEMS
Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Tue, November 15

7. SPEAKER LYTVYN CONSIDERS ANNOUNCEMENT OF DESIRED
WTO ENTRY DATE BY UKRAINE A MISTAKE
Ukraine still has WTO talks with United States, Australia, Armenia,
Kyrgyzstan, Colombia, Croatia, Panama, Ecuador, Egypt, and Taiwan.
Ukrainian News Agency, Kyiv, Ukraine, Monday, November 14, 2005

8. COMMUNIST PARTY INTENDS TO PREVENT PARLIAMENT

FROM ADOPTING NEEDED WTO BILLS
Ready to perform the most radical steps
Ukrainian News Agency, Kyiv, Ukraine, November 14, 2005

9. UKRAINE TRIES TO APOLOGIZE FOR ELIMINIATING
TAX BREAKS FOR INVESTORS
Special economic zones (SEZ), Territories for priority dev (TPD)
ANALYSIS: Roman Bryl, Ukraine Analyst
IntelliNews – Ukraine This Week
Kyiv, Ukraine, Monday, November 14, 2005

10. RUSSIA AND UKRAINE FAILED TO ACHIEVE AN
AGREEMENT ON TERMS FOR GAS SUPPLIES IN 2006
WPS – CIS Oil & Gas Report, Moscow, Russia, Tue, Nov 14, 2005

11. UKRAINIAN FOREIGN MINISTER TARASYUK SAYS RUSSIA
VIOLATING BLACK SEA FLEET AGREEMENT
Associated Press (AP), Kiev, Ukraine, Tue, November 15, 2005

12. UKRAINIAN PREMIER VOWS TO PAY OUTSTANDING
VAT REFUNDS THIS YEAR
Interfax-Ukraine news agency, Kiev, in Russian 14 Nov 05
BBC Monitoring Service, UK, in English, Tue, Nov 14, 2005

13. US CONSULTANTS’ FROM BILL CLINTON’S TEAM VISIT

TO UKRAINE NOT LINKED TO UPCOMING ELECTION
Interfax-Ukraine news agency, Kiev, in Russian, 14 Nov 05
BBC Monitoring Service, UK, in English, Mon, Nov 14, 2005

14. SWISS OFFER UKRAINE BRIDGE TO EUROPE
Adapt legislative and economic framework to European norms
Swissinfo, Bern, Switzerland, Sunday, Nov 11, 2005

15. TELENOR’S KYIVSTAR MOBILE PHONE OPERATOR BECOMES
UKRAINE’S NO. 1 WITH 12 MILLION USERS
By Anna Ivanova-Galitsina, Dow Jones Newswires,
Moscow, Russia, Tue, November 15, 2005

16. RUSSIAN VTB BUYS BANK MRIYA IN UKRAINE FROM
EX-SENIOR OFFICIAL PETRO POROSHENKO
New Europe, Athens, Greece, Mon, November 14, 2005

17. FIVE EUROPEAN BANKS IN FINAL BID FOR UKRAINE’S
FOURTH-LARGEST BANK UKRISBBANK
By Tom Warner in Kiev and Christopher Condon in Budapest
Financial Times, London, UK, Tuesday, November 14 2005

18. AUSTRIAN 3UNITED MOBILE SOLUTIONS COMPANY

SET FOR EXPANSION IN KIEV AND BUCHAREST
News Corporation S.A., Athens, Greece, Tue, November 14, 2005

19. HEINEKEN EYEING DEALS IN UKRAINIAN BEER MARKET
By Andrew Langley, Dow Jones Newswires
Moscow, Russia, Tuesday, November 15, 2005

20. CARDINAL RESOURCES TO INVEST USD 20-40M IN UKRAINE
News Corporation S.A., Athens, Greece, Mon, November 14, 2005

21. KYIV ART ARSENAL MUSEUM COMPLEX IDEA APPROVED
Press office of the President of Ukraine Victor Yushchenko
Kyiv, Ukraine, Monday, 14 November 2005
22. UKRAINE’S FIRST LADY IN PARIS HONORS
1932-1933 FAMINE-GENOCIDE VICTIMS
Press office of the President of Ukraine Victor Yushchenko
Kyiv, Ukraine, Monday, November 14, 2005
23. 72ND OBSERVANCE OF UKRAINE’S GENOCIDE TO BE
HELD AT ST. PATRICK’S CATHEDRAL IN NEW YORK CITY
Ukrainian Congress Committee of America (UCCA)
New York, New York, Wednesday, Nov 15, 2005
24. NEW YORK TIMES TO BE ASKED TO SURRENDER WALTER
DURANTY’S 1932 PULITZER TO THE UKRAINIAN NATION
The United Ukrainian American Organizations of Greater New York
New York, New York, Tuesday, November 15, 2005
25. UKRAINIAN POLICE SEIZE WORKS BY BELARUSIAN
DISSIDENT ARTISTS IN KIEV
Belapan news agency, Minsk, in English 1650 gmt 14 Nov 05
BBC Monitoring Service, UK, Monday, November 14, 2005
26. STOP ENVYING FALLING ORANGE REVOLUTION IN UKRAINE
Civic United Front Secretary Warned of a Ukraine-style revolution
By Guardian Reporter, Guardian, ippmedia.com
Dar es Salaam, Tanzania, Fri, November 11, 2005
27. ‘FIDDLER’ LIKE PLAY STILL VERY HOT IN UKRAINE
Ivan Franko National Academic Drama Theater in Kiev
Sold-out performance of “Tevye the Milkman”
By Vladimir Matveyev, JTA
New York, NY, Sunday, November 13, 2005
Quarterly art magazine introducing today’s Ukrainian artists
The Action Ukraine Report (AUR)
Kyiv, Ukraine, Wednesday, November 16, 2005
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1
. YUSHCHENKO: CURRENT STATE OF UKRAINE’S MEDICAL
SECTOR ONE OF THE MOST DISTURBING PROBLEMS
Average life expectancy in Ukraine ten years lower than in
other European countries. Every month 70 thousand people die.

Radio Address to the Ukrainian Nation
President Victor Yushchenko
Official Website of President of Ukraine
Kyiv, Ukraine, Saturday, November 12, 2005

Dear fellow citizens!

As President of Ukraine, I find the current state of the medical sector to
be one of the most disturbing problems.

Polls show that average life expectancy in Ukraine is ten years lower than
in other European countries. Every month we lose 70 thousand people.
Cancer, heart and blood disease are major causes of death. Every hour,
one Ukrainian dies of tuberculosis.

These terrible figures mean thousands of tragedies.

Every day, I receive dozens of letters, and you entreat me to save your
child, father, mother, brother or sister. Each letter is my personal pain.

The medical sector needs complex and profound changes. These
challenging reforms demand great efforts and support.
FIGHT AGAINST AIDS
This week, I considered this issue. We spoke about these reforms at a
cabinet meeting. On Friday, I met AIDS patients to discuss ways to
prevent and treat this lurid disease in Ukraine. Experts claim there are
400 thousand HIV-positive people in our country.

I will now personally control the fight against AIDS, cancer, tuberculosis,
heart and blood disease. In 2006, we will start four national programs to
fight these diseases. We will also open specialized national centers to
coordinate our efforts.

Next year, we will open mini centers to anonymously diagnose AIDS in each
district of Ukraine. In each regional center there will be a hospital with
20 beds for AIDS patients. I ordered the Finance Minister and the Health
Minister to implement this project.
MODERN BURN CENTER
Ukraine needs a modern burn center. It should be similar to that I saw in
Boston when visiting Nastya Ovchar, our little heroine.

American physicians were surprised at great professionalism of their
Ukrainian counterparts, who had rendered first aid to Nastya. However,
we would not have saved the girl without special equipment.
PRACTICE OF FAMILY DOCTORS
Medical reforms start with doctors. Ukraine has twice as many doctors
as developed countries. At the same time, medical services are of poor
quality, which is why our first challenge is to restore the practice of
family doctors.

The people should personally know their doctors. They are very efficient.
They know their patients well and are focused on preventing diseases
rather than treating them.
FINANCING HEALTH CARE
European countries spend 30% of their health budget on family doctors who
render about 90% of all medical services. In Ukraine, everything is totally
different, for only 5% are given to family doctors and they render 40% of
services.

We should profoundly change approaches to financing the sector.

Most funds should be used to finance the so-called first aid sector, for the
majority of people that come to doctors need first aid. We currently give
only 5% on that.
RURAL MEDICAL SECTOR
We are particularly concerned with the rural medical sector. We will renew
the network of village hospitals. They should be supplied with necessary
drugs and well-equipped. I assigned the Health Minister and Finance
Minister to solve this problem.

We should increase our expenditure to 1.200 million UAH in 2006-2007.
460 million will be used to buy new equipment, and 83 million will be
spent to purchase ambulance cars for these village hospitals. We will
provide for money to buy drugs for district and regional hospitals.

Government should be particularly solicitous for the disabled. British
Prime Minister Tony Blair has a blind minister in his cabinet, and I find
this example very significant. I want our people with particular needs to
suffer no discrimination when searching for a job or visiting libraries and
cinemas.

On June 1, I signed an order to adopt urgent measures to create favorable
conditions for the people with physical disabilities. In December, I would
like regional officials to account for its implementation. I also want to
learn what the community thinks.
INTRODUCE MEDICAL INSURANCE
We are preparing a foundation to introduce medical insurance. That will
help solve problems of illegal payments in the sector. Very soon I will
sign an order on medical reforms.

It is easier to lose your health than to restore it.

Each of us is responsible for personal health, which greatly depends on our
lifestyle. Our healthy lifestyle will make each of us prettier. It will make
our families happier. It will make the nation stronger. I urge you to lead a
healthy life.

Ukrainians have never been alcoholics. Physical strength, morality, faith
and spirituality have always been major values of our ancestors. We are
their worthy sons and daughters.

One year ago, I defined health protection as one of the priorities of my
election program Ten Steps for the People. This year, we have already
taken some serious steps.

We increased the so-called baby aid by 11 times, and 150 thousand young
mothers received this money. We also increased our expenditure on the
sector. In 2006, we will add 500 million hryvnyas to this year’s sum.

The bigger part of these funds will be used to reanimate the medical sector
in rural areas. But this is only a beginning of structural changes.
HEALTH ISSUE VITAL FOR ME
The health issue is vital for me. Every day, I am fighting consequences of
my poisoning. I believe one day I will wake up absolutely healthy and find
no awful traces of dioxin on my face.

President Franklin Roosevelt, who made radio addresses to his nation
popular, lived in a wheelchair. However, he is considered to be one of the
most successful American leaders in history.

Roosevelt said: “You need to have courage to serve your nation.”

Those who wanted to poison me made me courageous. Now I know the
real price of life and understand what suffering is. And each cell of my
body is ready to serve my people. -30-
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Subtitles by The Action Ukraine Report (AUR) Monitoring Service.
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2. UKRAINIAN PARLIAMENT PASSES THREE WTO-RELATED
LAWS IN FIRST READING

UNIAN news agency, Kiev, in Ukrainian 1502 gmt 15 Nov 05
BBC Monitoring Service, UK, in English, Tue, Nov 15, 2005

KIEV – Members of the Communist Party’s [parliamentary] faction are
continuing to block the Supreme Council’s [parliament’s] rostrum.

They are continuing to block the rostrum although parliament has already
passed in the first reading the draft laws [1] “On amending certain laws of
Ukraine on customs clearance of goods”, [2] “On amending the law of
Ukraine ‘On export duty for cattle and raw hide'”, and [3] “On amending
Article 1 of the law of Ukraine ‘On export duty on scrap metal'”.

These laws are essential for Ukraine’s accession to the World Trade
Organization [WTO]. -30-

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3. BRAWL IN UKRAINIAN PARLIAMENT INTERRUPTS WTO VOTE

Associated Press (AP), Kiev, Ukraine, Tuesday, November 8, 2005

KIEV – A brawl erupted among Ukrainian lawmakers in parliament Tuesday,
interrupting voting on a series of bills needed for entry to the World Trade
Organization.

One of eight bills was passed, but lawmakers put off consideration of the
remaining seven following the brawl. The bill passed envisages changes to
sanitary rules for foodstuffs, including the threat of penalties.

Communists and pro-government lawmakers shoved each other and fought as
Economics Minister Arseniy Yatsenyuk struggled to speak in support of WTO
membership. Communists also sounded loud, wailing sirens to drown out the
debate before the 450-member parliament broke for recess.

President Viktor Yushchenko has made WTO membership an important

goal for the country, which needs foreign investment to boost its sluggish
economy.

But parliament has so far adopted only half of the required 14-bill package,
due to opposition from Communists who fear membership will hurt

Ukrainian farmers and industry.

Yatsenyuk said that failure to adopt the bills “will not hurt the WTO…it
will hurt Ukraine”, but he expressed hope that the government and

lawmakers will settle the most disputed issues, including banking
regulations.

Some experts say Ukraine is in a rush to join because of fears that Russia
will win WTO membership earlier and then impose new conditions on
Ukraine, delaying Kiev’s admission. -30-
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4. UKRAINIAN LEADER CONDEMNS COMMUNISTS FOR
BLOCKING WTO-RELATED BILLS

Interfax-Ukraine news agency, Kiev, in Russian 1914 gmt 15 Nov 05
BBC Monitoring Service,UK, in English, Tue, Nov 15, 2005

PARIS – President Viktor Yushchenko has said that political forces which
block adoption of laws essential for Ukraine’s accession to the World Trade
Organization are acting against the country’s strategic course.

“This is a political challenge too. I do not think these political forces
work to the benefit of Ukraine’s strategy,” the president said when meeting
representatives of French business and political circles at the French
Institute of Foreign Relations in Paris today. [Yushchenko arrived in France
on 15 November for a two-day visit]

The Communists [parliament faction] are actively blocking votes on the
WTO-related laws. Parliament, nevertheless, has adopted a number of bills
and the president has signed some of them into law. -30-

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5. NOT ENOUGH TIME IN 2005 TO SIGN WTO PROTOCOLS
WITH AUSTRALIA AND THE UNITED STATES
USA wants to be the last to sign agreement with Ukraine

Oleksandr Khorolskiy, Ukrinform, Tue, November 15, 2005

KYIV – Ukraine may sign a protocol on access to markets of goods and
services with China, but it has not enough time to sign similar protocols
with the USA and Australia, Deputy Economics Minister Volodymyr
Ihnashchenko told journalists, answering their question on Ukraine’s
progress on the way to the WTO.

According to him, Ukraine has to sign such protocols with some ten
countries more. With seven countries Ukraine will sign the protocols
within two or three weeks.

According to Mr Ihnashchenko, procedural issues have remained in
signing the protocol with China, while Australia is demanding a big
quota and low import duty on raw sugar from Ukraine.

“It’s difficult for us to find a compromise. May be some additional
legislative alterations are needed”, Volodymyr Ihnashchenko stressed.

Talking about negotiations with the USA on the matter, the Deputy
Economics Minister said that “this country is traditionally the last to
sign such agreements”. -30-
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6. IN “INFORMAL” COMPETITION WHILE JOINING WTO
RUSSIA AND UKRAINE FACING DIFFERENT PROBLEMS

Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Tue, November 15

KYIV – In “informal” competition while joining the WTO Russia and
Ukraine are facing opposite problems, Deputy Economics Minister
Volodymyr Ihnashchenko told a Govt hot telephone line callers Tuesday.

“This is an interesting situation, both Russia and Ukraine cannot
complete the process quickly. But by this we face different problems”,
he noted.

As he said, in Ukraine the problem is with passing necessary legislative
alterations, but the process of concluding bipartite protocols is good.

In contrary, Russia has all the necessary levers to pass all amendments,
but concluding bipartite protocols is problematic there. As he said, Russia
is challenged with signing the protocols with the USA and EU countries.

At the same time, Russia has managed to uphold more profitable conditions
with countries, members in the WTO, than Ukraine has. “For instance
import duty on automobiles. We’ve agreed on 10 percent-duty, while
Russians have pressed for 25 percent”. -30-
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7. SPEAKER LYTVYN CONSIDERS ANNOUNCEMENT OF DESIRED
WTO ENTRY DATE BY UKRAINE A MISTAKE
Ukraine still has WTO talks with United States, Australia, Armenia,
Kyrgyzstan, Colombia, Croatia, Panama, Ecuador, Egypt, and Taiwan.

Ukrainian News Agency, Kyiv, Ukraine, Monday, November 14, 2005

KYIV – Parliament Speaker Volodymyr Lytvyn considers the fact that
Ukraine has announced a concrete period within which it wants to secure
admission into the World Trade Organization a mistake. Lytvyn
announced this to journalists.

“We made a strategic mistake when we stated a timeframe,” Lytvyn said.
According to him, more attention should have been paid to the process of
admission into the WTO and not announce a deadline.

According to Lytvyn, the fact that Ukraine announced a timeframe has put
the country in a less favorable situation because member-countries of the
WTO are now making demands that Ukraine is forced to accept. Lytvyn
believes that Ukraine should have set a timeframe for itself without
announcing it.

As Ukrainian News earlier reported, Ukraine is aiming to secure admission
into the WTO during the organization’s ministerial conference scheduled for
Hong Kong in December.

In September, Ukraine agreed WTO entry terms with Iceland, the thirty-
eighth country with which it has agreed such terms.

Ukraine is presently continuing WTO entry talks with the United States,
Australia, Armenia, Kyrgyzstan, Colombia, Croatia, Panama, Ecuador,
Egypt, and Taiwan. -30-

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8. COMMUNIST PARTY INTENDS TO PREVENT PARLIAMENT
FROM ADOPTING NEEDED WTO BILLS
Ready to perform the most radical steps

Ukrainian News Agency, Kyiv, Ukraine, November 14, 2005

KYIV – The Communist Party faction in the Verkhovna Rada is ready to
perform the most radical steps to prevent the parliament from adopting
several draft laws concerning Ukraine’s accession to the World Trade
Organization.

Adam Martyniuk, the parliament’s first deputy chairman, was speaking at
a press conference. “The faction will be ready to make the most radical
measures,” Martyniuk said.

He also noted that according to the present procedure, if a bill is not
adopted during the current session, the parliament cannot repeatedly
consider the bill at the same session.

Martyniuk says he doubts that the parliament will adopt draft laws
concerning metal scarp, leather raw material and support of domestic
producers.

He also criticized Ukraine’s position on accepting all demands that are
made during the talks concerning the country’s membership in the WTO.
“Sorry, but they’re wiping their feet on us,” he said.

Martyniuk recalled that the United States has not yet canceled the
Jackson-Vanik amendment for Ukraine that is causing damages to the
country, and which was adopted at the Soviet time and has no relation
to Ukraine.

He also expressed great doubts concerning Ukraine’s accession to the
WTO in 2005.

As Ukrainian News reported, on November 3, deputies belonging to the
Communist Party faction blocked the rostrum of the Verkhovna Rada in
protest against the inclusion of draft laws necessary for Ukraine’s
admission into the World Trade Organization on the parliament’s agenda.

During the vote on the issues that should be included on the agenda,
Communist Party deputies switched on a siren to drown out Parliament
Speaker Volodymyr Lytvyn’s voice. -30-
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9. UKRAINE TRIES TO APOLOGIZE FOR ELIMINATING
TAX BREAKS FOR INVESTORS
Special economic zones (SEZ), Territories for priority dev (TPD)

ANALYSIS: Roman Bryl, Ukraine Analyst
IntelliNews – Ukraine This Week
Kyiv, Ukraine, Monday, November 14, 2005

President orders to restore some tax breaks for investors working
in SEZ and TPD —–

President Victor Yuschenko ordered government to develop a system of
compensating losses investors incurred after the liquidation of special
economic zones (SEZ) and territories for priority development (TPD).

SEZ and TPD were offering investors a variety of tax privileges and aimed
to create favorable conditions to promote investments in Ukraine.

When creating SEZ, government hoped they could bring an extra USD 18bn
of FDI in 5 years. Although this period was not finished yet, government
decided to abolish tax preferences for SEZ in March 2005. The government
making that decision was guided by several factors.

FIRST, SEZ and TPD failed to attract the planned amount of FDI. By the
start of 2005 only USD 2.1bn of FDI was attracted through SEZ.

SECOND, government received many evidences proving that tax breaks
in SEZ had created conditions for unequal competition.

For instance, in Donetsk region it was unveiled that a company imported
equipment using preferential taxation and then sold it at dumping prices.

THIRD, the state budget suffered huge losses due to introduction of the
breaks.

Main types of privileges:
[1] Tax breaks given to investors in SEZ and TPD;
[2] Special customs duties;
[3] Profit tax break (from 20% to 50%);
[4] No tax on investment (most of SEZ and TPD);
[5] No entrance customs duties and VAT;
[6] No obligation to exchange funds in foreign currency (most of SEZ and
TPD);
[7] Lower rent for land (50% for 3-10 years on average).

By abolishing SEZ government wants to destroy illegal schemes of money
laundering By disbanding SEZ, government hoped to destroy illegal schemes
designed by mischievous investors. But government obviously took a wrong
measure to prevent these breaches, in our view.

It would have been better to develop effective measures for custom services
and other regulatory authorities to prevent activities of such investors.
That would have not harmed investors that operated in SEZ without breaking
the law.

Government fails to determine how to estimate investors’ activity within
SEZ —–

Before government decided to abolish SEZ and TPD, EconMin and FinMin
had made separate analyses of the efficiency of such territories. The
results
of the analyses were similar: only 4 investors working in SEZ fulfilled all
investment obligations. Ministries did not reveal which methodology they had
used that produced such a pessimistic outcome.

According to another official source, secretary of national security and
defense council Anatoliy Kinakh, out of 590 projects examined 170 fulfilled
all necessary investment obligations. The main reason of the contradictions
was that there was no unified methodology for determining whether investors
made needed obligations.

According to existing methodology, activity of investors working in SEZ was
examined using 7 criteria. The performance of an investor was considered
sufficient when he satisfied all 7 criteria. But practice showed that
investors could over-perform on one criteria but temporary failed to satisfy
on another.

Perhaps the entity was not an infringer but he was treated as one. It would
be more correct to estimate activities of investors in SEZ using softer
criteria. For instance, more than 1/3 out of 60 projects in Kharkiv region
TPD fulfilled their obligations by 80%, which could be regarded as positive
result.

Most heads of SEZ and TPD considered that activities of investors were not
properly analyzed. It took more then a year to make proper analysis of such
kind taking into consideration existing bureaucratic procedures. In
particular, investors needed more than 1 year to prove they met all
promises.

Most SEZ suffer from abolishing preferences —–

Abolishing tax breaks forced investors to cease their activities in SEZ.
Among 142 projects realized in Donetsk region, 137 entities needed to revise
their business plans. In Lugansk region all 32 projects were mostly stopped
after abolishing privileges.

At the end of 2004 authorities of Zhitomyr region TPD coordinated 8
investment projects but currently only 1 was launched. And this project was
launched only due to its reliance on internal investments (equipment for the
project was bought in Ukraine). Zakarpattya SEZ expected to attract USD
158mn in 2005 but failed to attract any.

There were 9 investment projects in Mykolaiv region and 2 of them have been
cancelled already. Even previously most successful SEZ and TPD suffer at
present from closure of companies.

Yavoriv SEZ, where 77 projects out of 90 were regarded as highly profitable
and successful, started to fire employees and decrease production volumes.
Slavutich SEZ can be regarded as an exception: 16 companies continue to
realize 19 projects. There is only one reason: government is too
inconsequent in its attitude to SEZ and rules of the game can be changed
once more.

Government: proposal to launch promissory notes on VAT refunds
to favor investors —–

Government, observing the negative impact on investors and SEZ decided
to restore tax breaks. But only partially. Government sent to all investors
a draft that offers investors to give customs authorities promissory notes for
VAT reimbursement when importing goods to Ukraine. The reimbursement
period is set at 180 days.

This draft can hardly be regarded as restoration of tax privileges. But this
is better than nothing. Investors were attracted to SEZ by a wide range of
breaks including income tax, land lease, customs duties, etc.

Still, government’s latest proposal is not relevant because it favors only
importers of equipment, while in most cases the equipment had been
imported already. Nevertheless, some companies import different parts,
assembling them into end products, and then exporting the products.

These investors mostly work in the Western part of Ukraine that is close to
the EU border. But these entities hope that after implementing the new
reimbursement scheme, government will make the next step and restore
preferential customs duties.

Investors want all privileges to be restored —–

We must note that government’s initiative cannot be approved by a
governmental order. The liquidation of tax breaks was done via law.
Another special law would have to be passed to restore or present new
kinds of tax benefits. It would take a lot time to approve this legislation
due to political reasons.

Also, in Ukraine promissory notes are a widely used mechanism for
financial manipulations. It is possible that investors will not wait 180
days to redeem notes and will sell them to banks at discount rates.

The banks can re-sell them further disfiguring the real price of
promissory notes.

In any case, notes will not help attract investors into SEZ and TPD.
Investors are waiting for full restoration of preferences. To be continued.
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10. RUSSIA AND UKRAINE FAILED TO ACHIEVE AN
AGREEMENT ON TERMS FOR GAS SUPPLIES IN 2006

WPS – CIS Oil & Gas Report, Moscow, Russia, Tue, Nov 14, 2005

On November 10, negotiations of Gazprom with representatives of Naftogaz
Ukrainy on terms for supplies and transit of Russian gas held in Moscow
failed, reported a source in Gazprom.

Despite the achievements previously achieved on the supreme level with
regard to switching to payment for transit and gas supplies with money at
prices and tariffs corresponding to the European ones, Ukrainian party keeps
insisting that nothing should be changed and terms for gas supplies and
transit in 2006, should remain unchanged.

For five years, the price of Russian gas supplied to Ukraine amounted to $50
per 1,000 cubic meters, although the basic price was $80 per 1,000 cubic
meters. During the same period prices on European market almost doubled.

The market price of gas for Ukraine calculated according to net back method
(the price of gas on the “basic” sales market minus transportation costs)
amounts to about $160 per 1,000 cubic meters. Meanwhile, Naftogaz Ukrainy
denied information about negotiations with Gazprom.

The PR service of the company reported, “On November 10, official
representatives of Naftogaz did not visit Moscow and did not hold any
negotiations with Gazprom.

Gazprom and Naftogaz Ukrainy permanently conduct consultations on the
level of specialists but visits of representatives of the companies in the
framework of such events do not have a status of official negotiations.”
(Source: Vremya Novostei, November 11, 2005) -30-
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11. UKRAINIAN FOREIGN MINISTER TARASYUK SAYS RUSSIA
VIOLATING BLACK SEA FLEET AGREEMENT

Associated Press (AP), Kiev, Ukraine, Tue, November 15, 2005

KIEV – Ukrainian Foreign Minister Borys Tarasyuk lashed out at Russia
Tuesday, accusing it of violating an agreement that allows Moscow to
base its Black Sea Fleet in a Ukrainian port.

The two nations divided up the Soviet Black Sea fleet after years of
arguments following the 1991 Soviet collapse and Russia was allowed to
baseits fleet at Sevastopol until 2017. But they squabble periodically, with
Ukraine frequently complaining that Russia isn’t upholding its side of the
1997 agreement.

In comments to the Kievskiye Vedomosti newspaper, Tarasyuk accused
Russia of illegally appropriating extra land in the port, posting signs that
read “Territory of Russian Federation” and closing off whole streets.

“This can’t but worry us,” Tarasyuk was quoted as saying. He told the
newspaper that Russia illegally occupied nearly 150 hectares of land
around Sevastopol that aren’t covered by the 1997 agreement, and is
renting out other land in violation of the deal.

“They are receiving commercial profits from these spaces, which should
have been used for another purpose – in the interests of the Black Sea
Fleet,” Tarasyuk was quoted as saying.

There was no immediate response to the accusations from Russian
officials. He also complained that Russian flags fly from parts of
Sevastopol and Russian patrols march with weapons through the
streets.

Russia and Ukraine frequently trade verbal barbs over a range of
issues, from gas transit to their shared border in the Black and Azov
Seas. -30-
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12. UKRAINIAN PREMIER VOWS TO PAY OUTSTANDING
VAT REFUNDS THIS YEAR

Interfax-Ukraine news agency, Kiev, in Russian 14 Nov 05
BBC Monitoring Service, UK, in English, Tue, Nov 14, 2005

KIEV – Outstanding VAT refunds will be paid in full by the end of this
year, except in those cases now heard in courts, Ukrainian Prime Minister
Yuriy Yekhanurov has said.

“By the end of the year we will fully repay all outstanding VAT refunds,
except in those cases now heard in courts,” Yekhanurov said at the
conference entitled “Future Business and Economic Priorities for
Ukraine” in Kiev today.

The cabinet is now calculating outstanding VAT arrears, which are being
disputed in courts, he said, adding that “according to the available
estimates, this is one half of the whole debt, which equalled 1.7bn
hryvnyas [about 336m dollars] on 1 November”.

He urged businessmen to work more actively with courts in order to
speed up the decision-making process concerning VAT refunds. “We
can do this, and we will do this,” he said. -30-
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13. US CONSULTANTS’ FROM BILL CLINTON TEAM VISIT TO
UKRAINE NOT LINKED TO UPCOMING ELECTION

Interfax-Ukraine news agency, Kiev, in Russian, 14 Nov 05
BBC Monitoring Service, UK, in English, Mon, Nov 14, 2005

KIEV – Two American political consultants from the team of former US
President Bill Clinton are visiting Ukraine to share their experience of the
work of the offices of heads of state around the world and the visit is not
connected to the upcoming parliament election [in March 2006], the press
secretary of the Ukrainian president [Viktor Yushchenko], Iryna
Herashchenko, said today.

“Only Ukrainian experts work in President Yushchenko’s team, but it is
absolutely right to share the experience of the work of offices of other
countries,” she said.

“Today when the secretariat is being reorganized, its administration closely
studies the experience of the presidential offices of our closest
neighbours, including Russia and Poland, as well as France and America,”
he said.

She said the American consultants’ visit has nothing to do with the upcoming
parliamentary election in Ukraine.

“No, it has nothing to do with the election campaign,” she stressed, adding
that Bill Clinton and Viktor Yushchenko discussed this visit when they met
in Davos [January 2005] and the idea came from the American side, but for
technical reasons they were not able to come until now.

Herashchenko said that during the previous parliamentary and presidential
elections Yushchenko was “the only [politician] whose team was made up
of Ukrainian experts only.”

She said that this week the American experts will hold one-day seminars
and meet the heads of structural divisions [of the presidential
secretariat].

“We are convinced that it is never too late to study. We are very interested
in their opinion,” she said.

[The Washington Whispers section on the US News and World Report web
site reported recently that Clinton’s former press secretary Mike McCurry
and ex-Chief of Staff John Podesta are travelling to Ukraine “to meet with
Yushchenko and dispense a little advice”.] -30-
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14. SWISS OFFER UKRAINE BRIDGE TO EUROPE
Adapt legislative and economic framework to European norms

Swissinfo, Bern, Switzerland, Sunday, Nov 11, 2005

Ukraine’s move towards democracy and membership of the European
Union has been the focus of a one-day meeting in Lugano.

At the Focus on Eastern Europe conference, Swiss Foreign Minister
Micheline Calmy-Rey said Switzerland wants to smooth the way for
Ukraine’s entry into Europe. Calmy-Rey said in this way Switzerland
could contribute to the long-term stabilisation of eastern Europe.

She added that Switzerland could in particular help Ukraine adapt its
legislative and economic framework to European norms – something
she said the former Soviet republic would have to do.

She said Switzerland’s experience showed that this wasn’t easy, which
was why Switzerland wanted to make the relevant know-how available.

A first step in this direction has already been taken. At the end of June
Calmy-Rey paid an official visit to Ukraine and, at the request of Ukrainian
President Viktor Yuschenko, made a Swiss consultant available to him.

“I am convinced our diplomats possess knowledge that will be of great
value to Ukraine,” Calmy-Rey said on Friday, adding that Switzerland had
special expertise in the fields of decentralisation and fighting corruption.

The foreign minister said Switzerland and Ukraine should work together
more “because neither of us is in the EU but we share European values”.
She said both countries belonged to Europe based on their cultural
identities and political circumstances.
FINANCIAL SUPPORT
Walter Fust, head of the Swiss Agency for Development and Cooperation
(SDC), and Oscar Knapp, from the Swiss State Secretariat for Economic
Affairs (Seco), emphasised how much Switzerland’s work was appreciated
by partner countries in the east.

Since the mid-1990s the SDC and Seco had supported projects for reform
in Ukraine at a cost of SFr8-9 million ($6-6.8 million) a year.

Fust said the main areas of focus for the SDC were judicial reform, the
sustained cultivation of natural resources such as drinking water, and the
strengthening of public society.

Seco concentrated on promoting the private sector, primarily by supporting
and financing small and medium-sized businesses, in addition to
strengthening “corporate governance” in firms and the banking sector.
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15. TELENOR’S KYIVSTAR MOBILE PHONE OPERATOR BECOMES
UKRAINE’S NO. 1 WITH 12 MILLION USERS

By Anna Ivanova-Galitsina, Dow Jones Newswires,
Moscow, Russia, Tue, November 15, 2005

MOSCOW — Ukraine’s mobile phone operator Kyivstar said Tuesday that it
became the largest company by subscriber number in Ukraine with 12 million
users to date.

Kyivstar, majority owned by Norway’s Telenor ASA (TELN), said that its
subscriber base is 200,000 larger in user number than that of the closest
competitor in Ukraine.

Previously, the largest operator by user number in Ukraine was UMC, a
company 100%-owned by Russia’s largest operator OAO Mobile
TeleSystems (MBT). (Company Web site:
http://www.kyivstar.net)
————————————————————————————————
Anna Ivanova-Galitsina, Dow Jones Newswires,
anna.galitsina@dowjones.co

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Power Corrupts and Absolute Power Corrupts Absolutely.
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16. RUSSIAN VTB BUYS BANK MRIYA IN UKRAINE FROM
EX-SENIOR OFFICIAL PETRO POROSHENKO

New Europe, Athens, Greece, Mon, November 14, 2005

Russia’s biggest state-owned foreign trade bank, Vneshtorgbank (VTB), is
buying Ukraine’s Mriya bank, in an attempt to expand into the country’s
retail market, RIA Novosti reported on November 4.

Mriya, which is one of Ukraine’s top thirty banks, was considered to be
the property of the former chief of Ukraine’s Security Council, Petro
Poroshenko.

VTB President Andrei Kostin said Mriya had a network of 22 branches
and 143 offices, covering nearly all of Ukraine’s regions. He added that
the bank’s modest financial indicators had made the price very attractive,
but did not reveal the exact sum.

Yury Ushkov, an analyst with Troika Dialog investment in Kiev, put the
price at USD 80-100 million, or two or three times Mriya’s capital. -30-
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17. FIVE EUROPEAN BANKS IN FINAL BID FOR UKRAINE’S
FOURTH-LARGEST BANK UKRISBBANK

By Tom Warner in Kiev and Christopher Condon in Budapest
Financial Times, London, UK, Tuesday, November 14 2005

Five European banks have made final bids for a 51 per cent stake in
Ukrsibbank, the fourth-largest bank in Ukraine, in a private tender likely
to fetch up to $350m, according to bankers involved.

France’s Société Générale, Austria’s Erste Bank, Hungary’s OTP, Italy’s
Banca Intesa and Commerzbank of Germany were up against each other
in what is being seen as the second round in a contest among Europe’s
big groups to sweep up most of the best banks in Ukraine.

The first round ended last month when Austria’s Raiffeisen International
paid $1.04bn for 93 per cent of Bank Aval, Ukraine’s second-biggest, after
fighting off some of the groups that are now bidding for Ukrsibbank.

Some of the same banks and others such as Italy’s UniCredito are also
looking at Ukrsotsbank, Ukraine’s third-biggest, which last month revived
contacts with prospective buyers after a planned sale to Russia’s Alfa Bank
was called off.

Ukrsibbank has a 5.3 per cent market share in Ukraine with assets of $1.75bn
and more than 700 branches. Its rise in the 1990s was closely linked to its
owners’ holdings in the metallurgy and chemicals industries, but in recent
years it has shifted focus to retail banking, mortgages and consumer
lending.

Most of the bidders are the big western European groups which dominate
the banking sectors of Ukraine’s central European neighbours.

The one notable exception is OTP, a home-grown Hungarian bank which has
become a big player in the region, despite its independent status amid a
crowd of multinational heavyweights. OTP owns Bulgaria’s second-largest
bank and has smaller holdings in Slovakia, Croatia and Romania.

Ukrsibbank’s owners, Olexander Yaroslavsky and Ernest Galiyev, who are
also members of parliament, plan to retain a 49 per cent stake and remain
active in developing the bank with a view to selling the rest of their
shares later, one banker involved in the tender said.

However, the buyer would receive contractual guarantees allowing it to
increase its stake to more than 60 per cent if a conflict arose with the
Ukrainian owners. -30-
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18. AUSTRIAN 3UNITED MOBILE SOLUTIONS COMPANY
SET FOR EXPANSION IN KIEV AND BUCHAREST

News Corporation S.A., Athens, Greece, Tue, November 14, 2005

The Austrian premium SMS and m-commerce provider 3united mobile
solutions said last Tuesday in a statement it plans to strengthen its market
leadership in eastern and south-eastern Europe by establishing subsidiaries
in Ukraine and Romania.

In addition to the company’s current subsidiaries in Vienna, Russia,
Croatia, Czech Republic and the US, 3united is set to establish subsidiaries
in Kiev and Bucharest, reads the statement.

3united is setting the stage for the continuation of its rapid expansion in
the growth markets of Eastern and Southern Europe, where the demand for
premium SMS connectivity and mobile services such as mobile ticketing,
cellphone styling, cellphone games and community services (e.g. dating and
chatrooms) is mushrooming.

“The initial short codes are slated to go live this year. 3united currently
services Eastern European customers such as Jamba, sms.ac, txtNation
and many others,” said board member Andreas Wiesmuller.

Over the past 18 months, 3united has been focusing on expanding into
Southern and Eastern Europe.

The company’s performance computing centre in Austria allows for
cross-border transmission and billing of SMS services via direct
connections to the networks of that region’s mobile services. 3united’s
services currently reach over 400 million mobile customers in Russia,
Bulgaria, Croatia, Slovakia, Slovenia, Austria, Germany, Switzerland,
Poland, Czech Republic, Romania and Hungary.

The company acquired iTOUCH UK und iTOUCH Ireland as customers
in October 2005, thus enabling 3united to greatly strengthen its market
position in Western Europe. -30-
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19. HEINEKEN EYEING DEALS IN UKRAINIAN BEER MARKET

By Andrew Langley, Dow Jones Newswires
Moscow, Russia, Tue, November 15, 2005

MOSCOW — With the process of consolidation almost complete in the
Russian beer market, Heineken Holding NV (00897.AE) is considering
acquisitions in neighboring Ukraine, Heineken Russia’s Chief Executive
Roland Pirmez said Tuesday.

“We’re always looking at Ukraine,” Pirmez said on the sidelines of a
conference organized by the Adam Smith Institute. He said the Belarus
market is also an interesting one – although less so than Ukraine, due to
the political situation there.

Pirmez said few acquisition targets remain in Russia, so the next step of
consolidation will be the distribution network. “Over the next five years,
there will be huge consolidation of distribution,” Pirmez said, adding that
Heineken currently has over 100 distributors around Russia.

Heineken’s arch rival, Baltic Beverages Holding (BBH.YY) which controls
over a third of the country’s beer market, has also announced plans to
unify its distribution network.

Pirmez said another feature of the Russian beer market will be a decrease
in the number of brands. Heineken is Russia’s third-largest brewer, with a
market share of 16%. -30-
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Andrew Langley, Dow Jones Newswires;
andrew.langley@dowjones.com
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20. CARDINAL RESOURCES TO INVEST USD 20-40M IN UKRAINE

News Corporation S.A., Athens, Greece, Mon, November 14, 2005

Britain’s Cardinal Resources Plc plans to invest USD 20 – 40 million in
developing three oil and gas fields in Poltava region in Ukraine over the
next htree to five years, company CEO Robert Bench said last Tuesday,
Interfax reported.

In particular, Cardinal will invest USD 20 million in developing the
Belousovsko-Cheernukhinskoye and Severo-Yablunovskoye oil and
gas fields another USD 20 million in developing the Dubrovskoye field,
if reserves are confirmed there.

Bench said that Cardinal Resources will invest in acquiring high-tech
equipment, which is not yet produced in Ukraine, and also in installing
state-of-art hydrocarbon production technology. -30-
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21. KYIV ART ARSENAL MUSEUM COMPLEX IDEA APPROVED

Press office of the President of Ukraine Victor Yushchenko
Kyiv, Ukraine, Monday, 14 November 2005

KYIV – Victor Yushchenko presided over a meeting of the Art Arsenal
Council. Humanitarian Vice Prime Minister Vyacheslav Kyrylenko, Culture
and Tourism Minister Ihor Likhovy and Kyiv Mayor Oleksandr Omelchenko
took part in the meeting to approve a concept of this museum complex.

The President was particularly grateful to Vyacheslav Kyrylenko, Deputy Head
of the Council, for formulating the concept. The Head of State said he was
convinced its approval would be a “historic decision.” Kyrylenko noted that
the Art Arsenal should be a center to promote the Ukrainian culture.

He added that, formulating the concept, a working group had decided to found
several museums at the complex: a history museum, a modern and folk art
museum, a jewelry museum, and a museum of private collections. Besides, they
plan to open various centers and build a children’s town within the complex.

Kyrylenko suggested they should encourage parliamentarians to pass a bill
on the Art Arsenal regulating financial and administrative aspects of the
project.

The President is sure that private companies can also take part in the
implementation of the project and suggested they should form a council of
sponsors by December 1.

The participants of the meeting agreed that the working group should revise
the existing concept and submit it to Victor Yushchenko by November 25.

*On October 7, 2005, Victor Yushchenko signed a decree to establish the
Council of the Art Arsenal. According to the decree, the major task of the
council is to define conceptual fundamentals of the museum complex and
consolidate society to implement the project. -30-
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22. UKRAINE’S FIRST LADY IN PARIS HONORS
1932-1933 FAMINE-GENOCIDE VICTIMS
The President’s wife urged all citizens of Ukraine to honor
Famine victims by lighting candles on November 26, at 4 PM.dddd
Press office of the President of Ukraine Victor Yushchenko
Kyiv, Ukraine, Monday, November 14, 2005

KYIV – Along with almost two thousand people, Kateryna
Yushchenko visited the Notre Dame de Paris to take part in the
third liturgy to commemorate victims of the 1932-1933 genocide
famine.

In her short interview with Ukrainian journalists, she said “it was time
Ukrainians and foreigners should remember and learn more about the
famine.” “We have no right to forget millions of the dead and should
worthily commemorate them,” she said.

The President’s wife urged all citizens of Ukraine to honor Famine
victims by lighting candles on November 26, at 4 PM.

In his sermon, Cardinal Andre Vent-Trua, assistant to the Archbishop
of Paris, said the French vicariously mourned for seven million victims
of the artificial famine organized by the communist regime. Ukrainian
Ambassador Yuriy Sergeyev was present at the liturgy. -30-
—————————————————————————————
FOOTNOTE: The International Ukrainian Holodomor-Genocide
Committee urges everyone around the world connected to Ukraine
to light a candle the night of Saturday, November 26, 2005.
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23. 72ND OBSERVANCE OF UKRAINE’S GENOCIDE TO BE
HELD AT ST. PATRICK’S CATHEDRAL IN NEW YORK CITY

Ukrainian Congress Committee of America (UCCA)
New York, New York, Wednesday, Nov 15, 2005

NEW YORK – On Saturday, November 19th the annual commemorative
observance of Ukraine’s Genocide will take place at St. Patrick’s Cathedral
in New York City.

Sponsored by the Ukrainian Congress Committee of America (UCCA),
the now traditional observance, which begins at 2:00PM, will include an
ecumenical memorial service (panakhyda) co-celebrated by the hierarchy
of the Ukrainian Catholic and Orthodox Churches.

Bishop Basil Losten of the Ukrainian Catholic Church along with
Archbishop Antony of the Ukrainian Orthodox Church of the USA will
be the main co-celebrants, while The Dumka Choir of New York City
will sing the responses to the memorial service.

Following the religious portion of the commemoration, government
officials and guests will be afforded an opportunity to offer their remarks.
The UCCA has also appealed to President George W. Bush to offer a
statement in honor of the 72nd anniversary of Ukraine’s Genocide that
will be read at the commemoration.

The entire Ukrainian American community of greater New York
metropolitan area is invited and urged to participate in this solemn
ecumenical observance of the 72nd anniversary of Ukraine’s Genocide.
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24. NEW YORK TIMES TO BE ASKED TO SURRENDER WALTER
DURANTY’S 1932 PULITZER TO THE UKRAINIAN NATION

The United Ukrainian American Organizations of Greater New York

New York, New York, Tuesday, November 15, 2005

NEW YORK – At noon on Friday, November 18, 2005, opposite The
NY Times Building at 229 43rd Street, informed, responsible & caring
Ukrainians will demand that Arthur Sulzberger Jr. [New York Times]

SURRENDER DURANTY’S 1932 PULITZER
TO THE UKRAINIAN NATION

In the future Ukraine will build a research institute dedicated to the study
of the Ukrainian Famine Genocide of 1932-1933. Duranty’s Pulitzer
deserves a special place in that institute.

Millions of innocent Ukrainians paid with their lives, slowly, agonizingly,
for Duranty’s prize. “Stalin’s apologist” denied the truth, suppressed &
distorted the facts.

The NY Times, America’s “newspaper of record”, repeatedly printed
Duranty’s Soviet propaganda and American leftists of the 1930’s eagerly
lapped up the apologists stew.

When the crimes of Joseph Stalin, Lazar Kaganovich, Vyacheslav

Molotov, Mendel Khataevych et.al. are fully revealed and they are
enshrined in a pantheon of Soviet infamy, one that parallels that of
the Nazis, Walter Duranty & The NY Times will be inducted as
accomplices and collaborators.

“There is no famine or actual starvation nor is there likely to be.”
-New York Times, Nov. 15, 1931, page 1

AIM (Accuracy In Media) reported: “In November of 1933 he [Duranty]
stood in the Oval Office of the White House as President Roosevelt
announced the diplomatic recognition of the USSR – an initiative he

would not have dared had the public known of the horrendous death

volodymyrlev@gmail.com
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25. UKRAINIAN POLICE SEIZE WORKS BY BELARUSIAN
DISSIDENT ARTISTS IN KIEV

Belapan news agency, Minsk, in English 1650 gmt 14 Nov 05
BBC Monitoring Service, UK, Monday, November 14, 2005

MINSK – Police officers in Kiev have seized all the works by Belarusian
dissident artists that were on display at the Belarusian National Centre,
which opened close to Independence Square in early June.

Berkut elite police officers raided the centre on the evening of 11
November, alleging that its management was late on lease payments. The
officers promised to return the paintings after the administration produces
documents confirming that they had been brought to Ukraine legally.

Centre coordinator Syarhey Vysotski told Belapan that the required
documents are kept in Belarus. He said the centre administration had
appealed to the Ukrainian Supreme Council [parliament] for explanations.
According to him, the centre has paid the lease until 15 December.

Oleh Venzhyk, deputy spokesman for the Ukrainian Interior Ministry, said
that the police had not seized any paintings from the Belarusian National
Centre. “An investigative team is currently working there in connection with
the disappearance of some documents,” he told Belapan.

The exhibition of works by Alyaksey Marachkin, Ihar Marachkin, Henadz
Drazdow, Ales Pushkin and Syarhey Tsimokhaw opened in central Kiev
on 27 September. It included works that the artists could not show in
Belarus for political reasons.

The centre was established with assistance from the Ukrainian People’s
Party to support democratic forces in Belarus. -30-
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26. STOP ENVYING FALLING ORANGE REVOLUTION IN UKRAINE
Civic United Front Secretary Warned of a Ukraine-style revolution

By Guardian Reporter, Guardian, ippmedia.com
Dar es Salaam, Tanzania, Fri, November 11, 2005

People often say that what you speak is what you think and eventually the
same become part of your life. To compliment it, the hero you admire is the
one whose footsteps you follow.

So does Seif Sharrif Hamad want to be like the falling Victor Ushchenko
who is now surrendering the Ukraine to Western carnivores of democracy?

Civic United Front (CUF) secretary, Seif Shariff Hamad warned of a
Ukraine-style revolution in Nairobi on the month of September in case
ruling party CCM rigs the just ended elections.

Now this statement has been raising the tension in Tanzania’s politically
volatile semi-autonomous state just a few days after Shariff Hamad
declared that the election was rigged.

In Nairobi, Shariff Hamad stated that if the elections conditions were not
met as was the case on 30 October, then Zanzibar will follow example of
Ukraine popularly known as ‘Orange Revolution’.

He says that because the elections were rigged once again, the people will
rise and will have no choice, but to express their dissatisfaction \”in the
only way we know-through peaceful demonstrations.\”

Just to look A year after the ‘orange revolution’ (that Hamad seem to envy)
that swept him to power, Ukraine’s President Viktor Yushchenko is visibly
tired, bitter about his shattered revolutionary team, and as determined as
ever to lead the ex-Soviet nation on a pro-Western course.

So when people voted Yushchenko, many were probably voting for a
package – Yushchenko and Tymoshenko, and their promise of a new free,
democratic Ukraine.

Now in Ukraine there is increasing evidence of economic disruption after
Orange Revolution. According to local media reports, the country’s foreign
trade revenue is falling by some $4m per day, and there are warnings that a
shortage of hard currency could soon hit the state budget.

The number of freight Lorries entering the country has reportedly dropped
to one third of its usual level.

“Now the only alternative for the Ukraine is to join NATO and it is sad to
say that if it will adopt Western style of democratization that has proved
failure in Afghanistan, then Ukraine will regret in the future incidences,
Novynosky the economic analysts in Ukraine believe so.

Only 18% on the Western Ukraine voted and agreed on joining NATO and
5% only accepted in the East, but despite of the majority denial to join the
NATO, Yushchenko has decide to join it while backed by USA and UK,
the countries which pretend to be democratizing agent.

USA and it’s alies in Europe has trapped the Ukraine in the name of
terrorism, the same thing that has ruined Afghanistan and Iraq through the
implementation of ‘false Western Democracies’.

USA and UK told the media in Ukraine that if Ukraine does join NATO, it
will enable the alliance to control its weapons exports and to prevent them
falling into the hands of hostile states or terrorist groups.

False democratization of Western countries has never ever played positive
role elsewhere in the World.

In Afghanistan where USA thought to bring democracies and hence
development, Bush administration, already under fire for under-funding the
rebuilding of Afghanistan and permitting that country’s warlords to retain
their power, is now facing charges that it is allowing Afghan drug
production to boom.

Now Afghan is the number one opium producer, worse that when the
Talebanese were in power, what a Western Democracy?

Hamad must know that democracy is not a switch, it is a process. It is
not just about the ballot box.

You can have a constitution that is second to none, but if you don’t have
the institutions civil society, the rule of law and the human rights
underpin, it won’t work.

Getting to the democracy is an evolutionary process. A thing like
corruption is not just about money, it is people thinking they are entitled
to a government job.

For an island like Zanzibar where family and regions connections (Pemba
andUnguja) have always counted so much, there is some way to go. Then
having divisive politics in Zanzibar like it is now, there is a way to go.
In fact, the people of Pemba were not poorer than other Tanzanians.

The per capita GDP of Zanzibar, which takes into account Unguja and
Pemba is higher than that of Tanzania Mainland. Nevertheless, Seif Sharif
Hamad politics, like that of Victor Ushchenko whose politics of ‘Orange
Revolution style’ he so much admires, is of division and spreads among
the people of Pemba. -30-
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LINK: http://www.ippmedia.com/ipp/guardian/2005/11/15/54083.html
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27. ‘FIDDLER’ LIKE PLAY STILL VERY HOT IN UKRAINE
Ivan Franko National Academic Drama Theater in Kiev
Sold-out performance of “Tevye the Milkman”

By Vladimir Matveyev, JTA
New York, NY, Sunday, November 13, 2005

KIEV – On a recent Friday night, hundreds of people at a Kiev theater
watched as a few people lit Shabbat candles and said the traditional
blessings.

This wasn’t a religious service or an outreach session aimed at teaching
Jews about their heritage; in fact, there were no Jews among those
lighting candles – and probably just a handful of them in the audience.

Instead, the ceremony was part of a sold-out performance of “Tevye the
Milkman,” which is enjoying its 16th season this year at the Ivan Franko
National Academic Drama Theater in Kiev.

The play, by the Russian Jewish author Grigory Gorin, is based on the
writings of the Yiddish classic Sholem Aleichem. Its plot is similar to
“Fiddler on the Roof.”

The ongoing success of the show is attributed to the high quality of the
production, the brilliant performance by the actor Bogdan Stupka as
Tevye, and the never-ending interest of many Ukrainians in Jewish
culture.

One of the spectators said the success of the Jewish story with a mainly
non-Jewish public is easy to explain.

“It’s an outstanding story with beautiful music and dances and the
spectacular acting by Bogdan Stupka. This combination makes the show
a great success in Ukraine, the motherland of Sholem Aleichem,” said
Sergei Komissarenko, a former Ukrainian Cabinet member and
Ukraine’s former ambassador to London.

He said this was his sixth time seeing “Tevye,” the first being back in
1990 when he accompanied Ukraine’s first post-Communist president,
Leonid Kravchuk, to the show.

Stupka, 65, who plays the protagonist, is himself not Jewish. Yet his
character seems to know how a non-Jew can so poignantly portray a
Jewish man.

“The Ukrainians are the closest to Jews” of all the people among whom
they live, says Stupka’s Tevye during the show. Offstage, Stupka finds
another way of explaining this phenomenon.

“The life of an actor is similar to wandering stars, to the fate of Jews,”
he told JTA after the performance, referring to the title of another book by
Sholem Aleichem, “The Wandering Stars.”

Stupka is widely recognized in his own country as Ukraine’s most famous
actor, and many think that Tevye is his most memorable stage role over the
last 10 years.

“Stupka gets into the psychology of his character to complete reincarnation
on stage. His laugh through tears is the laugh of Sholem Aleichem,” said
Alexander Zlotnik, a popular Ukrainian composer and the president of the
Association of Reform Jewish Congregations in Ukraine.

Stupka said he had contact with Jews as a child. Born in a region of Western
Ukraine once densely populated by Jews, he was brought up and educated
in a region where Jewish life and tradition was kept alive even after the
Holocaust.

“At home and in the theater – everywhere I lived and communicated with
Jews. In Western Ukraine, where I grew up, many Jews were very religious.

Sometimes, I got to see how they celebrated Jewish holidays,” recalls
Stupka, who on stage as Tevye speaks about the importance of keeping
Jewish tradition alive.

Non-Jewish viewers say they come to see the production not only for the
quality of the acting and the memorable songs, but also to get acquainted
with Jewish culture.

“I’ve always been fond of Sholem Aleichem’s stories. I like them very much
and find that the life of Tevye’s family must have been very familiar to my
grandparents, who lived side by side with Jewish people,” said Oksana
Vishnya, a non-Jewish college student from Kiev whose family comes from
Berdichev, a town that was once a major Jewish center.

The Ivan Franko Theater, the nation’s leading Ukrainian-language drama
company, stages almost exclusively the works of Ukrainian authors. The
theater managers say they consider the works of Sholem Aleichem, though
originally written in Yiddish, to be a central part of Ukrainian heritage –
and the audiences seem to agree.

We always have a full theater for ‘Tevye,’ and tickets are sold out far in
advance of each show, said a theater administrator.
Some of the viewers said they were excited to see the Jewish rituals
performed on stage, or even such basic Jewish attributes as yarmulkes and
tefillin they rarely see in real life.

But the production of “Tevye” is not only a celebration of the Jewish
experience, Stupka says. This play is an inspiration to us all, Jews and
non-Jews, serving as a universal affirmation of the inner strength and faith
within each and every one of us, he said.

Stupka says the popularity of the production also lies in the fact that
Sholem Aleichem wrote a timeless story while depicting a typical small-
town Jewish family of his time.

Stupka adds that to him it was important that the production keeps going
in spite of a recent outburst of anti-Semitic sentiments in Ukraine.

“It’s a tragedy when hostility between people has ethnic roots. Against
his background of anti-Semitic incidents, we try to prove the opposite –
the friendship between Ukrainians and Jews,” said Stupka, wiping sweat
from his forehead after three hours on stage. -30-
————————————————————————————————
http://www.jta.org/page_view_story.asp?intarticleid=16027&intcategoryid=5
————————————————————————————————
[
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========================================================
28. CONTEMPOARTUKRAINE
Quarterly art magazine introducing today’s Ukrainian artists

The Action Ukraine Report (AUR)
Kyiv, Ukraine, Wednesday, November 16, 2005

KYIV- ContempoARTukraine is an outstanding quarterly art magazine
designed to introduce and promote contemporary Ukrainian artists.

The magazine was first published in Ukraine in the summer of 2003 in
English. The magazine was founded by Walter Belanger who is
still the managing editor and lives in Kyiv.

Each issue features 10 different artists, of the more traditional art styles
[not modern art]. Each artist has six pages of full color reproductions
and a comprehensive article by a qualified art historian about their life,
styles and level of artistic experience.

Belanger told The Action Ukraine Report the aim of the magazine is to
show to the world the richness and quality of Ukrainian art. “The
publication, after three years, is turning into a mini-encyclopedia of
Ukrainian art, so far featuring over 80 outstanding painters and artists,”
Belanger said.

During the past three years ContempoARTukraine has also organized
15 art exhibitions of works by artists featured in the magazine in
California. With the active support of the U.S.-Ukraine Foundation
(USUF) of Washington, D.C., Ukrainian artists were introduced to
many U.S. art lovers.

Collectors of many national origins have now discovered Ukrainian art
and the list of collectors is growing with each exhibition. Managing
Editor Walter Belanger said, “California many not be the world but it
has been a good place to start. It is very gratifying that at our
exhibitions, since the Orange Revolution, we do not have to explain
anymore ‘Where is Ukraine?’

Belanger wrote in his ‘From The Editor’ column in the fourth issue for
year 2004, “We dedicate this issues of contempoARTukraine to the
Orange Revolution. To the young people of the student organization
PORA! (Time has come!), to all the people of Ukraine who, at last,
could exercise their constitutional rights, and to the fairly elected new
president, Victor Yushchenko. May the Spirit of Orange guide them
now and in the future.”

Walter Balanger spends a considerable portion of his time traveling
around Ukraine looking for, interviewing and then working with the
artists he chooses to feature in the magazine. He said he plans to
continue publishing the magazine and promoting Ukrainian art and
artists for many more years. -30-
—————————————————————————————-
NOTE: All the past issues of the outstanding new magazine
contempoARTukraine are still available. For information on how to
purchase any or all of the past editions of the magazine or to purchase
a yearly subscription please contact
ArtUkraine.com@starpower.net.

—————————————————————————————–
[
return to index]
========================================================
Power Corrupts and Absolute Power Corrupts Absolutely.
========================================================
“THE ACTION UKRAINE REPORT – AUR”
An Agent Of Change
A Free, Not-for-profit, Independent, Public Service Newsletter
ARTICLES ARE FOR PERSONAL AND ACADEMIC USE ONLY
Articles are Distributed For Information, Research, Education
Discussion and Personal Purposes Only
========================================================
NOTE: The new book, “Day and Eternity of James Mace”
published by The Day in Kyiv, in English or in Ukrainian, is available
from the www.ArtUkraine.com Information Service. If you are
interesting in finding out how to order the new book please send an
e-mail to ArtUkraine.com@starpower.net. EDITOR
————————————————————————————————
NOTE: The Ukrainian Federation of America (UFA) will be assisting
in the famine/holodomor/genocide commemorations in Kyiv during
November of this year. The Federation needs to raise several thousand
dollars for expenses related to the Holodomor Exhibition to be held in
the Ukrainian House. Donations can be made out to the Ukrainian
Federation of America and sent to the Federation at 930 Henrietta
Avenue, Huntingdon Valley, PA 19006. Please designate your donation
for the Dr. James Mace Memorial Holodomor Fund. EDITOR
========================================================
UKRAINE INFORMATION WEBSITE: http://www.ArtUkraine.com
========================================================
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The SigmaBleyzer Private Equity Investment Group offers a comprehensive
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You can be on an e-mail distribution list to receive automatically, on a
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“UKRAINE – A COUNTY OF NEW OPPORTUNITIES”
========================================================
“WELCOME TO UKRAINE” &
“NARODNE MYSTETSTVO” MAGAZINES
UKRAINIAN MAGAZINES: For information on how to subscribe to the
“Welcome to Ukraine” magazine in English, published four times a year
and/or to the Ukrainian Folk Art magazine “Narodne Mystetstvo” in
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McConnell, President; John Kun, Vice President/COO; Vera
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“THE ACTION UKRAINE REPORT – AUR” is an in-depth, private,
independent, not-for- profit news and analysis international newsletter,
produced as a free public service by the non-profit www.ArtUkraine.com
Information Service (ARTUIS) and The Action Ukraine Report Monitoring
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PUBLISHER AND EDITOR – AUR
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Washington Office, SigmaBleyzer Private Equity Investment Group
P.O. Box 2607, Washington, D.C. 20013, Tel: 202 437 4707
Mobile in Kyiv: 8 050 689 2874
mwilliams@SigmaBleyzer.com; www.SigmaBleyzer.com
———————————————————————————————
Director, Ukrainian Federation of America (UFA)
Coordinator, Action Ukraine Coalition (AUC)
Senior Advisor, U.S.-Ukraine Foundation (USUF)
Chairman, Executive Committee, Ukraine-U.S. Business Council
Publisher, Ukraine Information Website, www.ArtUkraine.com
Member, International Ukrainian Holodomor Committee
=======================================================
Power Corrupts and Absolute Power Corrupts Absolutely.
=======================================================

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