AUR#776 Oct 17 New WTO Movement By PM; McDonald’s No 57; GDP Growth Forecast Up; Tell Story Of Fight For Independence; Self-Destruction Strategy; NATO

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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


ACTION UKRAINE REPORT – AUR – NUMBER 776

Mr. E. Morgan Williams, Publisher and Editor
WASHINGTON, D.C., TUESDAY, OCTOBER 17, 2006

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——- INDEX OF ARTICLES ——–
Clicking on the title of any article takes you directly to the article.
Return to the Index by clicking on Return to Index at the end of each article

1. UKRAINE: PRIME MINISTER FINALLY URGES LAWMAKERS TO
APPROVE LONG-DELAYED WTO LEGISLATION
Associated Press, Kiev, Ukraine, Monday, October 16, 2006

2. PM SAYS PARLIAMENT SHOULD ACCELERATE CONSIDERATION
& APPROVAL OF DRAFT LAWS NECESSARY FOR WTO ACCESSION
Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

3. PM FORECASTS CABINET WILL SEND DRAFT LAWS ON WTO
ACCESSION TO PARLIAMENT BY MID-NOVEMBER
Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

4. PREPARING MAJOR RAILROAD OPERATOR FOR PRIVATISATION
Ukraine: Ukrzaliznytsya has no choice but to be reformed
ANALYSIS & COMMENTARY
: By Roman Bryl, Ukraine Analyst
IntelliNews – Ukraine This Week, Kyiv, Ukraine, Monday, October 16, 2006

5. MCDONALD’S OPENS NEW RESTAURANT IN LVIV
Number 4 in Lviv, number 57 in Ukraine
Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

6. IMF RAISES UKRAINE’S GDP GROWTH FORECAST: 5% TO 6%
Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

7. EBRD BOARD OF DIRECTORS APPROVES SLOBOZHANSKA
CONSTRUCTION CERAMICS CAPITAL INVESTMENT OF $9.82M
Ukraine’s leading ceramic brick producer
Interfax-Ukraine, Kyiv, Ukraine, Monday, October 16, 2006

8. AMC ALLOWS FINNISH COMPANY CONTROL OVER LARGE MFG
OF TOILET AND BATHROOM CERAMIC PRODUCTS IN UKRAINE
Interfax-Ukraine, Kyiv, Ukraine, Monday, October 16, 2006

9. UKRAINE: AGRICULTURE MINISTER MELNYK MEETS WITH U.S.
AMBASSADOR TAYLOR ON GRAIN EXPORT RESTRICTIONS
ForUm, Kyiv, Ukraine, Friday, October 13, 2006

10. GOVERNMENT INTERVENTION IN PRIVATE GRAIN MARKETS
IS THE USUAL UKRAINIAN GOVERNMENT INEPTITUDE
COMMENTARY: Ukrainian Agricultural Markets Newsletter (UAMN)
Kyiv, Ukraine, Friday, October 13, 2006

11. INTERNATIONAL ENERGY AGENCY EXPERTS THINK UKRAINE
SHOULD REDUCE POWER CONSUMPTION IN ITS ECONOMY
Ukrainian News Agency, Kyiv, Ukraine, Friday, October 13, 2006

12. ANTON KRAWCHENKO ON BOIKO ENERGY ANNOUNCEMENT
LETTER-TO-THE EDITOR: By Arthur McCallum, Kyiv
Action Ukraine Report (AUR) #776, Article 12
Washington, D.C., Tuesday, October 17, 2006

13. NOT ONLY CAESAR’S WIFE MUST BE ABOVE SUSPICION
Comments on James Hobb’s “Who Dares To Stand Up For The Future?
COMMENTARY:
By Volodymyr Hrytsutenko
Franko National University, Lviv, Ukraine
Action Ukraine Report (AUR) #776, Article 13
Washington, D.C., Tuesday, October 17, 2006

14. “TIME HAS COME TO STOP IMPOSING SECOND-RATE
COMPLEX ON EASTERN UKRAINE”
Ukrainian Deputy Prime Minister Dmytro Tabachnyk
advocates official status for Russian language
INTERVIEW WITH: Ukrainian Deputy Prime Minister Tabachnyk
CONDUCTED BY: Oles Buzyna
Segodnya newspaper, Kiev, in Russian 12 Oct 06
BBC Monitoring Service, United Kingdom, Friday, Oct 13, 2006

15. UKRAINE: PRES ORDERS CABINET, ACADEMY OF SCIENCES TO
TELL THE STORY OF THE FIGHT FOR UKRAINIAN INDEPENDENCE
Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

16. UKRAINIANS WANT SOVIET-ERA FAMINE TO BE DECLARED
GENOCIDE BY UKRAINIAN PARLIAMENT
Associated Press (AP), Kiev, Ukraine, Monday, October 16, 2006 .

17. PRESIDENT BUSH SIGNS INTO LAW H.R. 562 AUTHORIZING THE
GOVERNMENT OF UKRAINE TO ESTABLISH A MEMORIAL ON
FEDERAL LAND TO VICTIMS OF MANMADE FAMINE, 1932-1933
Statement by the Press Secretary
Office of the Press Secretary, The White House
Washington, D.C., Friday, October 13, 2006

18. WORLD NEEDS TO STOP THE GENOCIDE IN DARFUR NOW
But, Ukraine and Ukrainians Remains Silent
COMMENTARY:
Morgan Williams, Publisher and Editor
Action Ukraine Report (AUR) #776, Article 18
Washington, D.C., Tuesday, October 17, 2006

19. SELF-DESTRUCTION STRATEGY
Irresponsible political confrontation, inadequacy, non-transparency
For every new day brings new proof of the inability and immaturity of the
Ukrainian ruling clique. Every new day makes Ukraine weaker and more insecure.
COMMENTARY & ANALYSIS: By Yulia Mostovaya
Zerkalo Nedeli On The Web, Mirror-Weekly No 39 (618)
International Social Political Weekly
Kyiv, Ukraine, Saturday, 14 – 20 October 2006 year

20. FEDERALIZATION OR FEUDALIZATION?
What does Yanukovych’s government actually intend to do?
ANALYSIS & COMMENTARY: By Serhiy Hrabovskyi
Deputy editor-in-chief of Suchasnist periodical
Ukrainskaya Pravda, Kyiv, Ukraine, Wed, October 11, 2006

21. NATO AS ‘GLOBAL PLAYER’ SEEN CREATING MORE FEAR
Ukraine could become a potential “second Poland”..But the internal
Ukrainian situation and Russia’s inevitable response make the question
of Kiev’s participation quite unrealistic
COMMENTARY:
By Fedor Lukyanov, Chief Editor
Russia in Global Affairs: “The Global Irritant”
Gazeta.ru website, Moscow, in Russian 12 Oct 06
BBC Monitoring Service, United Kingdom, Monday, Oct 16, 200

22. POLAND: RUSSIAN FOREIGN MINISTER “LAVROV’S SUCCESS”
Poland poses lesser “problem” for Russia as EU “malcontent”
In Ukraine, the orange revolutionaries lacked Polish mediation this time.
COMMENTARY:
By Antoni Podolski
Gazeta Wyborcza newspaper, Warsaw, in Polish 12 Oct 06
BBC Monitoring Service, United Kingdom, Friday, Oct 13, 2006

23. GEORGIA RE-ORIENTS MAIL ROUTES TO UKRAINE
RIA Novosti, Tbilisi, Georgia, Saturday, October 14, 2006

24. EU OFFERS SCHOLARSHIPS TO BELARUSIANS BARRED FROM
THEIR STUDIES, STUDENTS CAN STUDY IN UKRAINE OR LITHUANIA
Associated Press (AP), Brussels, Belgium, Monday, October 16, 2006

25. CABINET SUGGEST PARLIAMENT ALLOCATE UAH 53 MILLION
FOR COMPLETING RECONSTRUCTION OF ODESA OPERA THEATER
Ukrainian News Agency, Kyiv, Ukraine, Friday, October 13, 2006
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1
. UKRAINE: PRIME MINISTER FINALLY URGES LAWMAKERS
TO APPROVE LONG-DELAYED WTO LEGISLATION

Associated Press, Kiev, Ukraine, Monday, October 16, 2006

KIEV – Prime Minister Viktor Yanukovych urged lawmakers Monday to pass
long-delayed legislation needed for Ukraine’s entry into the World Trade
Organization, in an unexpectedly public sign of support for a top policy
goal of President Viktor Yushchenko.

“We need to solve all issues on preparing Ukraine’s joining WTO during the
last months of this year,” Yanukovych said, according to his spokesman Denis
Ivanesku, during a joint session of parliamentary faction leaders and his
Cabinet.

Yushchenko had vowed to take the former Soviet republic into the WTO by
the end of last year, but ran into strong opposition by Socialists and
Communists.

Parliament has passed only handful out of more than 20 bills required to
enter into the world trade body. Ukraine has now missed two self-imposed
deadlines, and observers say the nation is unlikely to pass all the bills
needed for entry by year’s end.

The decision by pro-Russian Yanukovych to back the WTO bid comes weeks
after he roiled ties with Yushchenko by declaring Ukraine’s bid to join the North
Atlantic Treaty Organization to be premature.

Yanukovych said earlier that he supported quick WTO membership, but said the
nation must ensure it protects its national interests.

Some analysts have suggested Ukraine’s new government is slowing its push
for membership as a concession to Russia, which has seen its own hopes of
joining WTO mired in disputes with Washington.

Ukraine is also in difficult talks with Russia to try to win discounted
prices for natural gas imports. -30-
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2. PM SAYS PARLIAMENT SHOULD ACCELERATE CONSIDERATION
& APPROVAL OF DRAFT LAWS NECESSARY FOR WTO ACCESSI
ON

Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

KYIV – Prime Minister Viktor Yanukovych has forecast that Ukraine will
join the World Trade Organization (WTO) during the January-February
period of 2007 if the parliament approves the necessary draft laws.

The press service of the Cabinet of Ministers announced this, citing a
statement that Yanukovych made at a joint meeting of the Cabinet of
Ministers and the coordinating council of the parliamentary coalition.

According to the press service, Yanukovych is insisting on the need for the
parliament to accelerate consideration and approval of the draft laws that
are connected with Ukraine’s accession to the WTO.

‘It is necessary to resolve all the issues involving preparation for
Ukraine’s accession to the WTO in the final months of this year,’ the press
service quoted Yanukovych as saying.

Members of the coordinating council also considered the draft laws ‘On the
Basis for Ukraine’s Domestic and Foreign Policies’ and ‘On amendments to
Certain Legislative Acts of Ukraine regarding the Issues of procurement of
Goods, Work, and services with State Funds.’

As Ukrainian News earlier reported, one of the provisions of the Universal
Declaration on National Unity is Ukraine’s accession to the WTO by 2007.

As part of its efforts to secure admission into the WTO, it remains for
Ukraine to sign the relevant protocols with two member-countries of the
organization (Kyrgyzstan and Taiwan) and adopt the necessary amendments to
its active legislation. -30-
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3. PM FORECASTS CABINET WILL SEND DRAFT LAWS ON WTO
ACCESSION TO PARLIAMENT BY MID-NOVEMBER

Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

KYIV – Prime Minister Viktor Yanukovych has forecast that the Cabinet
of Ministers will send the draft laws that are necessary for Ukraine’s
accession to the World Trade Organization (WTO) to the parliament by
mid-November. Yanukovych made the forecast at a press conference.

Yanukovych said that the parliamentary coalition’s council has considered
the issue of Ukraine’s accession to NATO.

According to him, Ukraine needs to adopt 20 draft laws in the near future
and three of these draft laws have already been sent to the parliament.

He said that ministries and departments are still considering five draft
laws while all the remaining draft laws are undergoing expert examination in
the Cabinet of Ministers and will be considered at a meeting of the Cabinet
of Ministers in the near future. ‘It will not take more than 2-3 weeks,’
Yanukovych said.

He said that the Cabinet of Ministers is abiding by the timetable for
preparing these draft laws. He also stressed that the Cabinet of Ministers
is taking the opinions of Ukrainian manufacturers into account during the
preparation of these draft laws.

Yanukovych said that the government would exert all efforts to ensure that
the parliamentary coalition supported these draft laws.
As Ukrainian News earlier reported, Yanukovych has forecast that Ukraine
will join the WTO during the January-February period of 2007 if the
parliament approves the necessary draft laws.

President Viktor Yuschenko expects the parliament to adopt the draft laws
necessary for Ukraine’s accession to the WTO before the Ukrainian-European
Union summit that will take place in Helsinki (Finland) on October 27.
Ukraine previously set itself the target of joining the WTO in 2006. -30-
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4. PREPARE MAJOR RAILROAD OPERATOR FOR PRIVATISATION
Ukraine: Ukrzaliznytsya has no choice but to be reformed

ANALYSIS & COMMENTARY: By Roman Bryl, Ukraine Analyst
IntelliNews – Ukraine This Week, Kyiv, Ukraine, Monday, October 16, 2006

State railroad operator Ukrzaliznytsya seems to have decided to breathe a
new life into its own existence and carry out a deep restructuring.

On one hand, the entity suffers from old-fashioned equipment and
rolling-stock that harms its clients. For instance, accumulated depreciation
makes up 65%. For rolling-stock the figure is 68%.

The company has fallen up to 30% behind the railroad repair schedule. On the
other hand, lack of competition and inheritance of the Soviet railroad
transportation system makes Ukrzaliznytsya the only player that is in charge
of servicing export-oriented companies.

These entities are already fed up with criticizing the quality of operator’s
services. Moreover, they accuse Ukrzaliznytsya of carrying out an aggressive
tariff policy that makes railroad transport too expensive.

The operator counters that it makes insufficient amount of investments in
fixed assets and has to upkeep unprofitable services. In this situation,
state regulator – national commission for regulation of transportation –
prefers not to interfere in such conflicts.

Operator presents concept of own restructuring that aims at least to
transform it into corporation —–

In this situation Ukrzaliznytsya’s top-management decided to find a way out
on its own. According to their opinion, the company should solve two main
tasks – improve management quality and make its activity more transparent.

To reach these goals, Ukrzaliznytsya has no choice but to become a
corporation. It helps not only to gain extra profit, but also to contribute
to reforming the overall transportation sector.

We should note that attempts to turn the operator into a corporation were
undertaken by its ex-head Georgiy Kyrpa. His alleged suicide just after the
victory of the “orange revolution” is still considered the most shocking
event in the last several years. His attempts can hardly be called
successful.

Nevertheless the new restructuring concept is a combined set of proposals
that had been worked out by the entity’s previous managements. Mainly they
are based on the experience of railroad transport reform in many European
countries and in Russia.

They are as follows: re-establish the operator as a joint-stock company,
spin off some departments into separate entities, and open the railway
market for several independent players.

The new concept should to be fulfilled by 2015. The first step is
transforming Ukrzaliznytsya into national joint-stock company Ukrainian
Railroads.

At first stage company focuses on dividing business and regulatory
activities —–

The operator’s corporatization gives it more flexibility. For instance it
makes it possible to create joint ventures with private companies.

As a result, the level of transparency will rise and, respectively, the
amount of its “shadow” capital will decrease. Moreover, higher transparency
frees Ukrzaliznytsya from the status of an emergency donator of funds into
the state budget.

The project divides the reform process into 3 stages. The first stage
scheduled for 2006-2008 foresees dividing business and regulatory
activities.

A special committee that is expected to be created within the ministry of
transport and communication will define state policy for transport industry
development and will set up tariffs. In its turn, Ukrzaliznytsya will focus
only on business activity.

After this, enterprises that are involved in railroad transport will be
transformed into divisions of Ukrzaliznytsya. At the same time, the question
of who will oversee Ukrainian Railroads’ activity remains open.

The first option is the government, the second – ministry of transport and
communication. Now there are supporters of both choices, saying that
respectively government or the ministry can misuse the company in their own
interests.

Concept paves way for private entities to enter railroad transport
market —–

The concept also gives an answer to one principal question: will private
companies be allowed to enter the railway market. Currently, local officials
are still reluctant to bear with the notion of establishing private
railroads, in spite the backing the idea has from many large corporations.

But the concept foresees cooperating with private capital in such areas as
repairing rolling-stock or railroads’ non-core, non-transport activity, e.g.
services in terminals, dining-cars, etc. Obviously, the new company can
hardly give private companies access to profitable cargo transport, but it
can open the gates to suburban passenger service.

Suburban passenger service can be privatized in next several years —–

The second stage makes it possible for private entities to provide suburban
passenger services. It creates competition in this segment, as the operator
hopes to increase the quality of services. According to ex-minister of
transport Eugeniy Chervonenko, his ministry actively developed a plan of
privatizing suburban railway transport, and several local and foreign
investors even expressed interest in this program.

Although concept still on paper, draft green-lights privatisation of
Ukrzaliznytsya in future —–

But private companies themselves are not in a rush to cooperate with
Ukrzaliznytsya, saying its policy is unpredictable. This is especially true
for transport companies that are not even satisfied with the new
restructuring project. There are no indications in the draft on how to deal
with such entities, the companies’ representatives say.

They are right in saying it is just a draft that can be changed at any time.
Even the complete restructuring of Ukrzaliznytsya is not yet a final
decision.

The document only speaks about the possibility to open the market for
private capital. Nevertheless, the concept is the most serious attempt to
prepare the state railroad operator for privatization.

Recently, the company announced the value of its total assets stood at
about USD 14bn as of Oct 1. It sure is one juicy tidbit! -30-
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5. MCDONALD’S OPENS NEW RESTAURANT IN LVIV
Number 4 in Lviv, number 57 in Ukraine

Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

KYIV – McDonald’s Ukraine opened a new restaurant at 35, Svobody Avenue,
in Lviv on October 16. The company’s press service announced this to
Ukrainian News.

According to the announcement, the new restaurant is the company’s fourth
in Lviv and 57th in Ukraine. The investments in the construction of the
restaurant amounted to USD 1.1 million.

Officials at the company said that the new restaurant is capable of serving
about 2,000 people per day and that it can accommodate 50 people at a time.

As Ukrainian News earlier reported, McDonald’s Ukraine opened a new
restaurant in Dnipropetrovsk in September. The company plans to invest
USD 5 million in expansion of its restaurant chain in 2006. -30-
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6. IMF RAISES UKRAINE’S GDP GROWTH FORECAST: 5% TO 6%

Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

KYIV – The International Monetary Fund has raised its Ukraine’s GDP growth
forecast from 5% to 6% for 2006 and from 2.8% to 4.5% for 2007.

Ukrainian News learned this from the Kyiv office of IMF, which referred to
IMF Senior Permanent Representative to Ukraine Jeffrey Franks.

IMF will release its comments on the forecast upgrade in the last ten days
of October.

As Ukrainian News earlier reported, in its World Economic Outlook published
in September, IMF forecast Ukraine’s GDP growth at 5% for 2006 and 2.8%
for 2007. Ukraine’s GDP grew by 2.4% in 2005 and by 6.2% from January to
September of 2006. -30-
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7. EBRD BOARD OF DIRECTORS APPROVES SLOBOZHANSKA
CONSTRUCTION CERAMICS CAPITAL INVESTMENT OF $9.82M
Ukraine’s leading ceramic brick producer

Interfax-Ukraine, Kyiv, Ukraine, Monday, October 16, 2006

KYIV – The board of directors in the European Bank for Reconstruction and
Development (EBRD) has approved a $9.82 million capital investment in the
bank by Ukraine’s leading ceramic brick producer, CJSC Slobozhanska
Construction Ceramics in Plavnysche in Sumy region.

The enterprise plans to build a hollow brick plant in Kyiv region and to
conduct an upgrade of its factories in Irpin in Kyiv region, Kharkiv and
Romny in Sumy region in order to increase the production capacity of the
factories to 262 million brick per year.

The EBRD representative office in Kyiv told Interfax-Ukraine last week that
a relevant agreement would be signed in the near future.

The CJSC was founded in 1997 with the participation of the U.S. investment
fund Western NIS Enterprise Fund (WNISEF). In 2004, the fund sold its stake
in Slobozhanska Construction Ceramics to MARA Beteilingungsverwaltungs
GmbH, a holding company of the Austrian investment company Raiffeisen
Investment AG (RIAG), for $13.5 million. -30-
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8 . AMC ALLOWS FINNISH COMPANY CONTROL OVER LARGE MFG
OF TOILET AND BATHROOM CERAMIC PRODUCTS IN UKRAINE

Interfax-Ukraine, Kyiv, Ukraine, Monday, October 16, 2006

KYIV – The Antimonopoly Committee of Ukraine (AMC) has allowed Finland’s
Sanitec Europe Oy, a part of a European multi-brand group Sanitec
Corporation that designs, manufactures and markets bathroom ceramics, to
obtain over 50% votes in the board of directors in CJSC Slavuta Budfarfor
China Works in Khmelnytsky region.

The AMC press service reported last week that Sanitec received permission to
buy the required share in the statutory fund of Kyiv-based Slavuta Holding
Ltd., which controls the production and sales of the CJSC.

Budfarfor produces toilet and bathroom ceramic products in Ukraine.
According to the enterprise, it is one of the largest toilet and bathroom
ceramic producers in the CIS and Eastern Europe. As of the end of 2005, the
enterprise made over 30 bathroom products, and over 100 types of artistic
and household ceramics.

The CJSC was founded in 2003, and in April 2003, it rented Slavuta Budfarfor
Works under a leasing agreement signed with the regional department of the
State Property Fund.

The CJSC’s statutory fund is UAH 6 million. Around 2,500 employees work at
the enterprise, and as of early August, Kyiv-based CJSC Ukrbudmaterialy
Trade House fully owned the CJSC. -30-
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9. UKRAINE: AGRICULTURE MINISTER MELNYK MEETS WITH U.S.
AMBASSADOR TAYLOR ON GRAIN EXPORT RESTRICTIONS

ForUm, Kyiv, Ukraine, Friday, October 13, 2006

KYIV – The new restrictions on grain export have been imposed for the
purpose to prevent bread grain deficit within Ukraine, Agrarian Policy
Minister Yuri Melnyk told at a meeting with the US Ambassador William
Taylor.

Ukraine’s Melnyk outlined that the decision was transparent and all
interested parties (producers, grain traders etc) took part in it.

This step reflects the world practice and the WTO standards, Melnyk
stated.The parties agreed that such measure should be temporary.

In the course of the discussion, participants addressed the issues related
to the vet services’ cooperation aimed at stirring up bilateral
cattle-breeding production trade, and adjustment of Ukraine’s legislation
to the WTO standards. -30-
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LINK: http://en.for-ua.com/news/2006/10/13/111848.html
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10. GOVERNMENT INTERVENTION IN PRIVATE GRAIN MARKETS
IS THE USUAL UKRAINIAN GOVERNMENT INEPTITUDE

COMMENTARY: Ukrainian Agricultural Markets Newsletter (UAMN)
Kyiv, Ukraine, Friday, October 13, 2006

The government action in the grain markets is the usual Ukrainian
government ineptitude.

At the start of every season, the government usually puts artificial bans
in place through oblast regulations, or not allocating enough grain railway
boxcars that slow to a crawl the movement of the harvested grain, thus
forcing sales of grain to the state reserve. Every year. Except this one.

There is so much political turmoil in Ukraine all about the personalities,
nothing to do with the country and its needs, someone must have forgotten.
The result is that no high quality milling wheat (for bread) was purchased
for the state reserve.

The wheat crop is short this year on account of the poor conditions that
existed for planting last fall and the subsequent short fall in the number of
hectares planted. When you combine this with a poor quality (lack of bug
control) wheat crop this year and an international market that simply
exploded suddenly someone in the government got concerned and in
this conditions they always put in place Soviet type, anti-private market,
crisis regulations.

Due to poor crops of wheat in most producing countries, the result has
been price explosion. The U.S. farmer is seeing the best wheat price in 10
years. This is only an episode not a structural change. The allows farmers
to bring in more desperately needed cash for their operations.

The Ukraine government always fears bread prices soaring, which they are
going to do with or without licenses. They don’t seem to be alarmed that
they are tripling the cost of utilities. They also do not seem to understand
that the flour mills are mostly private and will follow the market.

As the government did not fill the state reserve, they have embarked on a
crisis policy of blackmailing the grain trade to sell them wheat 100 hryvnia
below the current local price. If a grain company does not sell under these
conditions to the government then there is that threat that no export licenses
for grain will be issued to that grain company.

By what imagination does any state suddenly impose licensing without
having put in place the means to apply for and obtain licensing? So ocean
vessels sit on the Black Sea and costs go up dramatically.

The government has also just decided also to place licenses on barley and
maize, neither of which are in short supply according to Ukrainian
government statistics. Why? Pressuring and intimidating the grain trade.

Should the state desire to be in the grain business (most of this policy
comes from the Economics minister, not the Ag minister and is driven by
political desire to maintain low bread prices, which they can not do) they
can simply go and buy 2 mil tons of good quality Kaz milling wheat, which
will come to the Ukraine market in any case.

The market is obliged to fill the gap for a good quality milling wheat.
License or not, will not change either price direction of wheat, or ultimately
bread.

IS IT A MESS? OF COURSE.

Will Ukraine in the end export a predictable amount of grains for the
total season? Yes.

Will the private grain “trade” get hammered without recourse? Yes

Will the international grain companies be demonized, despite there being
MANY large Ukrainian political operators in the market? Yes

Is there any contract sanctity in Ukraine for defaulted goods by Ukrainian
companies? No.

Will anyone give up on Ukraine? No.

Will this event help the Ukrainian people or give them better Bread prices?
No.

That’s about it for now. -30-
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11. INTERNATIONAL ENERGY AGENCY EXPERTS THINK UKRAINE
SHOULD REDUCE POWER CONSUMPTION IN ITS ECONOMY

Ukrainian News Agency, Kyiv, Ukraine, Friday, October 13, 2006

KYIV – International Energy Agency experts think Ukraine should reduce
power consumption of its economy in order to improve the country’s energy
preparedness.

Claude Mandil, chief executive of the IEA, told this during presentation of
the report of Ukrainian energy policy.

“Intensive power consumption makes Ukrainian economy sensitive to price
fluctuations and decreases its competitiveness”, said Mandil.

According to him, energy efficiency is one of the best possibilities for
reducing import, inducing economic growth and cutting down harmful effect
on the environment.

IEA experts believe Ukraine has to make its legislation transparent,
regulate the tariff policy and raise prices for energy supply up to
economically grounded level in order to improve home energy preparedness.

To their opinion, granting corresponding aid to the needy ones is more
efficient than subsidizing the whole fuel and energy complex.

Besides this, the agency experts also recommend to increase competition and
transparency in the oil-and-gas and energy sectors, develop and implement
standards of energy efficiency in housing and communal services and in
industry, strengthen control over state mines, solve problem of closing
unprofitable mines and conduct other reforms in this sector.

Mandil noticed, that Ukraine has already made several important steps for
improving its energy preparedness including raising home prices for energy
resources. “We with pleasure would cooperate with the government for
reforming the energy sector”, said Mandil.

As the agency earlier reported, Ukraine is going to reach agreement on
cooperation in energy sphere with the International Energy Agency (IEA).

IEA is a subdivision of the International Cooperation and Development
Organization. The Agency monitors and studies global fuel and energy market,
analyzes energy policy of the most important countries-suppliers and
consumers of energy resources including Russia, India, China, OPEC
countries (Organization of the Petroleum Exporting Countries), develops
recommendations for the IEA member-countries as to the energy policy.

IEA was founded during the petroleum crisis of 1973-74. Now 26 states
participate in it. -30-
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12. ANTON KRAWCHENKO ON BOIKO ENERGY ANNOUNCEMENT

LETTER-TO-THE EDITOR: By Arthur McCallum, Kyiv
Action Ukraine Report (AUR) #776, Article 12
Washington, D.C., Tuesday, October 17, 2006
RE: “Ukrainian Deal Strengthens Security of European Gas”
By Anton Krawchenko, Energy Business Review Online
London, United Kingdom, Thursday, 12th October 2006
Published by AUR #775, Mon, Oct 16, 2006, Article 8

Morgan, many thanks for your report from Oct 16. Always informative.

In regards to your re-print of Anton Krawchenko’s bit on the Boiko
announcement from last week, I’m unsure if I should be concerned about
Mr. Krawchenko’s seeming lack of information on the subject or his poor
analysis.

An announcement by a Ukrainian minister is not the conclusion of a deal,
much less the solution to a long-standing international political dispute.

Although Minister Boiko is substantially more adept at negotiating with the
Russians than Ivchenko ever could have dreamed, it ain’t over yet, Mr.
Krawchenko.

Russia was not ultimately opposed direct gas deals with Uzbek, Kazakh,
Turkmen? Sure, as long as Ukraine altered its geopolitical stance and didn’t
rock the boat with all those gas trading middlemen.

Rosukrenergo, exactly what compensation will they receive for their ‘loss’,
and for what loss exactly? A fine bit of detail avoidance, sir.

Byzantine and full of compromises this new deal? Yes, certainly. Different
than what was before, certainly not – only the politics has changed.

Mr, Krawchenko, it still remains to be seen who wins in this deal. I will
go out on a limb and say that all reasonable and informed Ukraine watchers
would agree that it is certainly is not everyone from Europe to Central
Asia.

So sleep well, Europe, and turn up those heaters. Energy Business Review
says that everything is A-OK on the Russian-Ukrainian-Central Asian gas
front. -30-
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13. NOT ONLY CAESAR’S WIFE MUST BE ABOVE SUSPICION
Comments on James Hobb’s “Who Dares To Stand Up For The Future?

COMMENTARY: By Volodymyr Hrytsutenko
Franko National University, Lviv, Ukraine
Action Ukraine Report (AUR) #776, Article 13
Washington, D.C., Tuesday, October 17, 2006

On Oct. 8, 2006, the Action Ukraine Report (AUR) posted a sympathizing
article by James D. Hobbs titled “WHO DARES TO STAND UP FOR THE
FUTURE?” (AUR #770, Article 1, Sunday, October 8, 2006).

In it Mr Hobbs takes an overly rosy-colored view of the Ukrainian president.
It beats him to think that our goody-goody president should be distracted in
his ceaseless toils by his plummeting ratings, thrashing by the media and
dwindling support of his countrymen.

The answer is simple: in Ukraine, we no longer believe declarations of our
leaders, we judge them by their deeds.

I’ll take Mr Hobbs’ major arguments one by one and try to present my own
vision of them:

1. “Why does the Ukrainian president remain committed to a “Westernization
course”, including the WTO, EU and NATO? Why does he appear to be

(nearly) alone in his dedication to Ukraine’s democratic future?”

The way to Europe lies through raising the living standards of Ukrainians,
fostering democratization and curbing mind-blowing corruption, things of
which Viktor Yushchenko has been surprisingly oblivious from the start of
his tenure. Making humiliating admission requests or even banging on
Europe’s door didn’t work.

Instead of rolling up his sleeves and focusing on economic issues,
Yushchenko distances himself from this all-important area, entrusting it to
his liubi druzi (dear friends), a bunch of cronies he led to the government.

From the start, the druzi acted as a counterweight to Premier Tymoshenko,
actually depriving her of the chance to do what she was eager to do –
cleanse corruption and accelerate economic reforms.

In doing so, Yushchenko stepped in the shoes of Leonid Kuchma who, seeing
that Yulia Tymoshenko was about to crack down on his gang’s illegal profits
in the oil&gas sector, dumped her.

Yulia’s situation is much the same now – she is not loved by the
pro-Yanukovych parties, even less so by the pro-Yushchenko ones. But her
approval ratings are climbing steadily – and this is the most important
message that gives Ukrainians a flicker of hope.

Why Yulia appeals so much to so many is no secret – she has the charisma,
she is unbending, true to her word and, importantly, she has always named
her enemies by their names, not just vaguely referring to “some political
forces” or “some elements in the government.”

This is the talk of a brave fighter who does not belong to the country’s
corrupt political environment. She stands out in the crowd of unscrupulous
Ukrainian politicos who freely migrate from one party to the other in search
of financial rewards, changing their views overnight.

In this respect, the RosUkrEnerho saga is a case study in treachery.
Conceived by Kuchma, the shady business was picked up and praised by
Yushchenko as the only way to ensure cheap gas supplies to Ukraine.

As 2006 parliamentary campaign unfolded, the angered Regions blasted
Yushchenko for backing the dubious business, promising to make short
work of it once in power.

What now? Regions are singing the old familiar song of how indispensable
RosUkrEnerho is. What are Ukrainians to think about this cash cow for
corrupt politicians and about their leaders’ integrity?

2. “The media and the people are against everything; they want nothing that
is being offered.”

And what exactly is or has been offered by the weakling presidential team?
Endless repulsive 5-month horse-trading about cushy seats in the government
with Yulia Tymoshenko, the incumbent’s angry attacks on the media for
exposing how the presidential offspring throws away hundreds of dollars in
restaurants, drives an unaccounted-for posh car and sports a 20,000 pound
cell phone, or his preoccupation with bee-growing, wood-carving and social
events when energetic actions were urgently needed?

The list is disappointingly long. Suicidal gas deals fixed by sloppy liubi
druzi managers appointed to high positions by Yushchenko, purposeful rocking
the government boat by appointing one of his cronies, Poroshenko, to head
the key defense and security council and vesting him with additional powers
enabling him to make short work of any productive efforts taken by the
Tymoshenko government.

Moreover, the incumbent himself was not free of accusations of his family
indirect involvement in shady oil/gas deals.

Was he not president? Did he not have the mandate of Maidan? He should
have cracked on corruption, instead of condoning it.

He should have kept his greedy for clout and cash liubi druzi in check if
statements of his supreme love for Ukraine had been sincere, and not merely
lip service. In fact, he had been so surprisingly helpless in keeping his
druzi on a short rein that he might have well been in league with them.

Why should we really respect and support such shepherd of the nation? Why
should we not, to use Mr. Hobbs’ sports terminology, boo and harass such
coach?

The list of presidential “slips” is too long and is ample evidence of his
inaptitude to cope with the challenges of his office.

3. “The Ukrainian President deserves appreciation among Ukrainians.”

Deeds, not words, are required to prove one’s worth to the nation. That
Yushchenko behaved and spoke boldly during his campaign is one thing. For
that he was awarded with the people’s mandate. What he has done once in
office is a totally different thing.

Unfortunately, his track record shows that he is not a creditable shepherd
of the nation. What’s happening now is no “lack of respect” by the Ukes for
their president, it’s his fiasco.

4. “Considering his ‘non-support’, the accomplishments of his 21 months in
power are huge.”

It’s a clear exaggeration that will keep many Ukrainians laughing. Down are
some arguments of Mr Hobbs explaining why Pres Yushchenko’s
achievements are not even huge.

4.1 “One must ask how more can be achieved when: The courts need to be
reformed first before successful prosecution of former officials, corruption
and other high-level crimes can take place,”

Yes, that was one of the things Yushchenko should have kept himself busy
from the start! He was so eager to get into his office that he hatched up a
rash deal with Yanukovych and Kuchma that clipped his powers and reduced
him to the pitiable position he is in today.

He had the support of Maidan – but he preferred to negotiate and sign deals
with criminals instead. He didn’t move to bring to account those who
blatantly rigged the elections, mouthed separatist slogans, poisoned him.

For two months after his win Rinat Akhmetov and his cronies went into hiding
abroad, sincerely expecting punishment for what they had done during the
campaign.

But seeing that the president was not going to lift a finger, they came back
to town. “What kind of criminal offences are you talking about?” Chornovil
and Kushnaryov asked indignantly. “Has anyone been convicted?”

4.2 “The VR and Cabinet continue to undermine his every move.”

Wake up, the well-wishing Mr. Hobbs. There’s a new kid from Donbas on
the block who knows his business well. He cares little about Ukrainian identity
and values.

He has a new profile, polished by expert image-makers. He is fully aware of
the split among Ukraine’s democrats and is going to cash in on it.

He is treading heavily on your toes, Mr. President. He is soft-spoken, but
he will not remain so for long. He is out to make short work of the Orange
cause to please his friends in Moscow and repay those who put money in his
war chest and his bank accounts. He will act as a steamroller – unless he
can be stopped.

4.3 “Who would suggest that Yushchenko is the reason for a lost Orange
coalition, where are the facts?”

Yushchenko let the genie of Poroshenko and other druzi out of the bottle and
then was incapable (or purposefully incapable?) of driving them back.

Thus, with the incumbent’s connivance (or blessing?), Our Ukraine block
became the main culprit behind the tragic split among Ukraine’s democrats.

I was not actually a Yulia supporter, but having seen since early 2005 the
true worth of Our Ukraine self-centered and hypocritical policies, I happily
defected to the Yulia’s camp.

4.4 “Many who spent weeks on Maidan in the 2004 cold did not vote in the
March 2006 elections.”

This, although by a lesser degree, is true. What can one expect from the
people exposed to almost 5 months of caricature statements by OU chieftains
about how eager they are to form an Orange coalition?

Incidentally, this was followed by another 2 months of the same caricature
talks, now with the Regions. Thanks to Our Ukraine, the word coalition has
itself become the best vomitive in Ukraine.

4.5 “Yushchenko has struggled with diversions and distractions from within
and from without.”

Under the present circumstances, no one would envy Yushchenko his
glorious office. Politics is the game for the tough, and weaklings are
quickly sidelined and dumped.

Pres Yushchenko, like I said above, voluntarily distanced himself from
running the country, entrusting the job to liubi druzi. It was his own
decision.

4.6 “Perhaps Maidan’s expectations were excessive; some would say that
Viktor Yushchenko was to be Ukraine’s “messiah”, but within less than two
years, you condemn him?”

Interestingly, yardsticks other than those accepted elsewhere are used by
Mr Hobbs to evaluate Yushchenko’s track record.

Would a president in a democracy survive scandals involving his own son’s
corrupt ways or boorish gagging of the press by the high executive himself,
or glaring corruption of his ministers, cronies and family members? Hence,
there seems to be some reason why we should not love our president.

4.7 “He is consistent with his goals for Ukraine’s people, with his honesty,
with his democratic beliefs and with his dedication to those beliefs
espoused on Maidan.”

In fact, Yushchenko did very little to act on his Maidan promises. Has
corruption been stopped, criminals put in jail, democratic reforms stepped
up, economic growth boosted?

However, you can’t deny the fact – our president has perfected his public
speaking skills to the extent that match Orwellian double-talk.

4.8 “Ukraine’s president is aware that if he is alone, Ukraine has little
hope.”

Ukrainians are so stupidly optimistic. We believe there’s always room for
hope, no matter what the circumstances are. We are a hard-working and
patient nation. We will start again and make it to a good and respected
legislature and a good and respected government.

4.9 “There are no “real” political parties in Ukraine.”

Who’s to blame? Under the Constitution, one of the incumbent’s top duties
is to enhance the growth of a civic society. Has the president reformed his
own party, blessed the creation of any NGO, spoke against selling to
tycoons seats on Our Ukraine election roster? -30-
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CONTACT: Volodymyr Hrytsutenko, vhryts@lviv.farlep.net
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[ return to index] [Action Ukraine Report (AUR) Monitoring Service]
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14. “TIME HAS COME TO STOP IMPOSING SECOND-RATE
COMPLEX ON EASTERN UKRAINE”
Ukrainian Deputy Prime Minister Dmytro Tabachnyk
advocates official status for Russian language

INTERVIEW WITH: Ukrainian Deputy Prime Minister Tabachnyk
CONDUCTED BY: Oles Buzyna
Segodnya newspaper, Kiev, in Russian 12 Oct 06
BBC Monitoring Service, United Kingdom, Friday, Oct 13, 2006

Russian language should be given official status in a special law on
languages, Deputy Prime Minister Dmytro Tabachnyk has said in an interview.
Attempts to introduce Ukrainian language at regional level caused tension in
society, he said.

The following is an excerpt from the interview with Dmytro Tabachnyk
conducted by Oles Buzyna entitled “Time has come to stop imposing
second-rate complex on eastern Ukraine” published in the Ukrainian
newspaper Segodnya on 12 October:

Deputy Prime Minister Dmytro Tabachnyk who is in charge of humanitarian
issues speaks on what the government plans to do with the Russian language,
Ukrainian history, single local church and national inquisition.

[Buzyna] What are the prospects of the draft law on languages in which [MP
and one of ruling Party of Regions leaders Yevhen] Kushnaryov proposed to
vary the percentage of Russian and Ukrainian schools depending on the number
of people who regard this or that language as native?

[Tabachnyk] It is directly related to the continuation of the constitutional
reform. If MPs gather themselves up to expand local authorities’ powers, the
issue will disappear by itself.

[Buzyna] But what are the prospects of the Russian language in the regions
where local councils introduced it as the regional one on the eve of the
[March 2006 parliamentary] election, for example, in Donetsk and Kharkiv?

[Tabachnyk] The formula of “regional language” does not give an answer to
the major question posed by these local councils: granting Russian the
status of an official language. This issue can be resolved if laws on
languages are amended.

[Buzyna] We are still following the 1990 Soviet law in language policy. It
stipulates: Ukrainian is the state language, but Russian is the “language of
inter-ethnic communication”. Probably, it will be enough just to fill this
inter-ethnic status with practical sense, won’t it?

[Tabachnyk] It is not a secret that Russian is used in courts and even in
parliament. It was just the desire that emerged in 2005-06 to speed up the
process of introduction of the Ukrainian language in the areas where
positions of the Russian language dominate. It has resulted in growing
social tension.

I think the government’s activity nowadays should be directed at observing
the constitution, which means observance of the provision on state status of
the Ukrainian language and legislative provisions for free choice of the
language by each Ukrainian citizen in the sphere of his private
communication, business, education, and finally, life.

[Buzyna] Mr Tabachnyk, but the point is not in individuals’ private affairs,
but in having a choice at the national level! Ukraine as a country has been
formed by Ukrainian-speaking regions and the ones where people used to
speak Russian. People living there want their native language to have state
status!

[Tabachnyk] I see no grounds for restricting their right. But this issue
cannot be resolved without amending provisions of the constitution. I can
absolutely frankly explain you the reasons of the government’s passive stand
on the language issue during the first two months.

This is because active work to form a grand coalition with Our Ukraine
[propresidential bloc] is under way. Among the three issues that can ruin
this ephemeral construction, the language issue is likely to be the major
one.

Unfortunately, politics is an art of possibilities. But offending freedom of
choosing language by any Ukrainian citizen is a sort of inquisition.

[Buzyna] What is the government’s attitude to [President] Viktor
Yushchenko’s age-old idea of creating a local church?

[Tabachnyk] The state has no political mechanisms to promote integration of
churches. The government’s position is unequivocal: we shall welcome this
process if it arises, but only on the basis of believers’ desire.

The rest is placid complacency and vain dreams. [Passage omitted: discussion
on social payments, media policy, Ukrainians’ role in Russian history,
support to NGOs.]

[Buzyna] In their efforts to prove that there should be only one state
language, our national democrats refer to Israeli experience: see the way
the Hebrew language has been revived there.

But they forget that there are two state languages in Israel, Hebrew and
Arabic, while the third one, Russian, is undergoing state proceedings. Why
are we so afraid of diversity here?

[Tabachnyk] Being a historian, I would like to refer to experience of the
past. While Rzeczpospolita [Polish Republic in 16th-18th centuries]
permitted diversity of its lands, it was a very strong country.

But an attempt to fit it to a single Polish standard resulted in its
collapse. One should not be afraid of Ukraine’s regional diversity. It will
just make it stronger. -30-

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15. UKRAINE: PRES ORDERS CABINET, ACADEMY OF SCIENCES TO
TELL THE STORY OF THE FIGHT FOR UKRAINIAN INDEPENDENCE

Ukrainian News Agency, Kyiv, Ukraine, Monday, October 16, 2006

KYIV – President Viktor Yuschenko ordered the Cabinet of Ministers and the
National Academy of Sciences to work out measures for 2006-2007, aimed at
studying and covering the participation of Ukrainians in WW-II and other
military conflicts of the 20th century. Ukrainian News learned this from
decree No.879/2006 of October 14.

These measures must include scientific studies, conferences, round-table
meetings and seminars, publication of books on the subject, creation of
films and TV programs, as well as an explanatory campaign in the mass media.

The President also ordered the Cabinet of Ministers and the National Academy
of Sciences, taking into account the conclusions of the workgroup of
historians within the intergovernmental commission for the study of the
activity of the Organization of Ukrainian Nationalists (OUN) and the
Ukrainian Insurgent Army (UPA), to draft a bill on the Ukrainian liberation
movement of 20s – 50s of the 20th century, the status and social security of
its participants.

Yuschenko says that this bill must also envisage recognition of the activity
of the organizations that fought for Ukraine’s independence in 20s – 50s of
the 20th century as Ukrainian liberation movement.

The President ordered the Education and Science Ministry to guarantee
together with the National Academy of Sciences all-round and objective
presentation of the subject of the Ukrainian liberation movement,
particularly, the history of UPA, the Ukrainian Liberation Organization, the
Organization of Ukrainian Nationalists, and the Ukrainian Main Liberation
Council.

Yuschenko ordered the Culture and Tourism Ministry, the Crimean Council
of Ministers, the state administrations of Kyiv, Sevastopol and regions to
renovate museum expositions reflecting the events connected with this
historical period.

Yuschenko signed this decree for consolidation of Ukrainians as a nation
and restoration of national memory, as well as for the sake of historical
justice towards the participants in the liberation movement, national
reconciliation and mutual understanding.

As Ukrainian News reported, in October several nongovernmental organizations
addressed the President with the request that he recognize the national
liberation fight of OUN and UPA for Ukraine’s independence. -30-
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16. UKRAINIANS WANT SOVIET-ERA FAMINE TO BE DECLARED
GENOCIDE BY UKRAINIAN PARLIAMENT

Associated Press (AP), Kiev, Ukraine, Monday, October 16, 2006 .

KIEV – Ukrainian officials and scientists Monday called on the country’s
parliament to declare a Soviet-era famine that killed up to 10 million
people as genocide.

“Parliaments of 10 countries have recognized the famine as genocide against
Ukrainian people, but Ukraine’s parliament has not yet done it itself,” Ivan
Vasyunuk, a top aide to President Viktor Yushchenko, said during a
round-table dedicated to the anniversary of the event.

Up to 10 million people died in the 1932-33 Great Famine, which was provoked
by Soviet dictator Josef Stalin as part of his campaign to force peasants to
join collective farms.

Countries including the U.S ., Canada, Austria, Hungary and Lithuania have
recognized the event as genocide, but the issue remains highly charged in
the former Soviet republic, since declaring the famine as genocide would
amount to an indictment of Soviet policies – something that Communists,
Socialists and many pro-Russian politicians are loathe to do.

Vasyunyk said Yushchenko aides were drawing up legislation proposing that
parliament recognize the event as genocide.

“Unfortunately our society has not yet realized not only the necessity to
condemn the tragedy but also the necessity to commemorate the victims”,
Foreign Minister Borys Tarasyuk said.

“There are no doubts that the famine was man made, that it was genocide. We
must recognize it (as such) if we respect our people,” scientist Vladyslav
Barsyuk said. -30-
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17. PRESIDENT BUSH SIGNS INTO LAW H.R. 562 AUTHORIZING THE
GOVERNMENT OF UKRAINE TO ESTABLISH A MEMORIAL ON
FEDERAL LAND TO VICTIMS OF MANMADE FAMINE, 1932-1933

Statement by the Press Secretary
Office of the Press Secretary, The White House
Washington, D.C., Friday, October 13, 2006

WASHINGTON – On Friday, October 13, 2006, the President signed
into law:

H.R. 562, which authorizes the Government of Ukraine to establish a
memorial on Federal land in the District of Columbia to honor the
victims of the manmade famine that occurred in Ukraine in 1932-1933.
————————————————————————————————–
BILL PASSES US CONGRESS TO AUTHORIZE GOV OF UKRAINE
TO ESTABLISH A MEMORIAL ON FEDERAL LAND IN DISTRICT OF
COLUMBIA TO HONOR VICTIMS OF MANMADE FAMINE 1932-1933

U.S. Congress, Washington, D.C. Friday, September 29, 2006
Action Ukraine Report (AUR) #769, Article 17
Washington, D.C., Friday, October 6, 2006

To authorize the Government of Ukraine to establish a memorial on Federal
land in the District of Columbia to honor the victims of the manmade famine
that occurred in Ukraine in 1932-1933. (Enrolled as Agreed to or Passed by
Both House and Senate)

H.R.562
One Hundred Ninth Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and six

An Act
To authorize the Government of Ukraine to establish a memorial on Federal
land in the District of Columbia to honor the victims of the manmade famine
that occurred in Ukraine in 1932-1933.

Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,

SECTION 1. AUTHORITY TO ESTABLISH MEMORIAL.
(a) In General- The Government of Ukraine is authorized to establish a
memorial on Federal land in the District of Columbia to honor the victims
of the Ukrainian famine-genocide of 1932-1933.

(b) Compliance With Standards for Commemorative Works- The establishment
of the memorial shall be in accordance with chapter 89 of title 40, United
States Code (commonly known as the `Commemorative Works Act’), except
that sections 8902(a)(1), 8906(b)(1), 8908(b)(2), and 8909(b) shall not
apply with respect to the memorial.

SEC. 2. LIMITATION ON PAYMENT OF EXPENSES.
The United States Government shall not pay any expense for the establishment
of the memorial or its maintenance.

Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
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LINK: http://thomas.loc.gov/cgi-bin/query/D?c109:5:./temp/~c109kbxqEH
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18. WORLD NEEDS TO STOP THE GENOCIDE IN DARFUR NOW
But, Ukraine and Ukrainians Remains Silent

COMMENTARY: Morgan Williams, Publisher and Editor
Action Ukraine Report (AUR) #776, Article 18
Washington, D.C., Tuesday, October 17, 2006

A large number of outstanding organizations who are involved in helping
people around the word have joined with those organizations who want
to speak out and take action against genocide whenever and wherever it
occurs in the world today to create the SAVE DARFUR COALITION.

The Save Darfur Coalition’s mission is to raise public awareness about
the ongoing genocide in Darfur and to mobilize a unified response to the
atrocities that threaten the lives of two million people in the Darfur
region.

The coalition is now an alliance of over 170 organizations. The Coalition’s
member organizations represent 130 million people of all ages, races,
religions and political affiliations united together to help the people of
Darfur, ( http://www.savedarfur.org/pages/organizational_members).

All of the organizational members have signed on to a statement demanding
peace and security for the people of Darfur,
(http://www.savedarfur.org/pages/unity_statement).

GENOCIDE IN UKRAINE, 1932-1933
One of the worst genocides in history occurred in Ukraine during 1932-1933
under the Soviets. Millions died from induced starvation. The Holodomor,
as it is now called in Ukraine, was the most heinous crime of Stalin and his
communist regime.

Ukrainian President Viktor Yushchenko, Foreign Minister Borys Tarasyuk
and other Ukrainian leaders around the world speak about the Ukrainian
genocide very often and state strongly it is something that must not ever
be allowed to happen again.

Ukraine wants the United Nations and the world to officially recognize
the terrible events in Ukraine in 1932-1933 as genocide.

Ukrainian Foreign Minister Borys Tarasyuk stated in an address before
the General Assembly of the United Nations in New York on Monday,
the 25th of September, 2006 the following:

“The international community is responsible for protection of people under
the threat of genocide or other violations of fundamental human rights. In
two years we will mark the 60th anniversary of the UN Convention on the
Prevention and Punishment of the Crime of Genocide. One and a half decade
before its adoption and yet before the tragedy of Holocaust Ukrainian people
had become victims of genocide.

Deliberately organized by the communist totalitarian regime with the purpose
of destruction of the vital core of freedom-loving Ukrainian people – its
peasantry, the artificial Holodomor in Ukraine of 1932-33 led to the death
of seven to ten million of innocent men, women and children which
constituted up to 25% of the then Ukraine’s population.

Having committed this inhuman crime, the communist regime tried to conceal
its scale and tragic consequences from the world community. And they
succeeded for a long time. After regaining the independence of Ukraine many
new appalling and horrifying facts have been revealed. Parliaments of a
number of countries took decisions recognizing Holodomor of 1932-1933 as
an act of genocide.

Ukraine calls upon the United Nations as the collective voice of the
international community to contribute to the commemoration of the 60th
anniversary of the Convention by recognizing Holodomor as an act of
genocide against the Ukrainian people.

Such a step would contribute towards making genocide and mass abuse
of human rights impossible in the future.”

BUT, UKRAINE REMAINS SILENT
But, as far as can be determined there is not one Ukrainian government
leader today who has spoken out about the genocide now going on in
Darfur.

There is not one Ukrainian organization in the world who has signed on
as a member of the Save Darfur Coalition.

It is time for President Viktor Yushchenko, Foreign Minister Borys
Tarasyuk and other Ukrainian leaders in Ukraine and around to world to
become actively involved in raising public awareness about the ongoing
genocide in Darfur and to help mobilize a unified response to the atrocities
that threaten the lives of two million people in the Darfur region.

Ukrainian leaders should be one of the first to speak out about genocide
in the world today, not the last or be among those who forever remain
silent.

The world remained silent in 1932-1933, the world did not respond,
and millions of Ukrainians died.

The way to honor and commemorate the memory of those who died
in 1932-1933 is to be fighting on the front lines today against genocide.

“When all the bodies have been buried in Darfur, how will history judge us?”
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CONTACT: Save Darfur Coalition: http://www.SafeDarfur.org.
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19. SELF-DESTRUCTION STRATEGY
Irresponsible political confrontation, inadequacy, non-transparency
For every new day brings new proof of the inability and immaturity of the
Ukrainian ruling clique. Every new day makes Ukraine weaker and more insecure.

COMMENTARY & ANALYSIS: By Yulia Mostovaya
Zerkalo Nedeli On The Web, Mirror-Weekly No 39 (618)
International Social Political Weekly
Kyiv, Ukraine, Saturday, 14 – 20 October 2006 year

Having signed the Declaration of National Unity, the politicians went back
to their old drawing board – the program of irresponsible political
confrontation. Inadequacy and non-transparency have long been the
identifying traits of their actions and inactions.

Why did the country become a hostage to this senseless fussing? What
has come out of it? Here is a subjective opinion.
CONFLICTS
The leading political parties have no ideologies. The parties of a smaller
caliber have declarative ideologies. Isn’t that a perfect prerequisite for
reaching compromises among them?

The key members of the three major factions in the parliament (except for
Rinat Akhmetov) have more or less commensurate property qualifications,
which might seem to be a perfect prerequisite for finding common solutions.
Nevertheless, neither in politics nor in business are there signs of
consensus.

The word, “conflict,” has become the basic term in characterizing relations
among the political forces and branches of government. Moreover, conflicts
tear and undermine the parties themselves. Rank-and-file Ukrainians are just
perplexedly watching the tug-of-war between the President and the Premier
over the constitution.

About 70 administration heads of various levels have received votes of
no-confidence from their respective territorial councils of deputies.

The interpersonal confrontation is no less intense. New appointments –
whether made by Yushchenko or Yanukovych – do not raise the professional
potential of their respective camps up to a critical mass of healthy
management. On the contrary, they, “work,” for self-destruction.

A candidate is equally supposed to meet intellectual requirements and to
counterbalance his opposite figure: Yatsenyuk vs. Azarov, Haiduk vs.
Yanukovych, Gryshchenko and Orel vs. Tarasyuk, Tolubko and Stetsenko vs.
Grytsenko. All of them, being quite intelligent, are supposed to multiply
their opposite numbers by zero: their main task is to concentrate on
counteraction.

They never seem to stop trading accusations and outright insults. The sole
underlying reason is that the only set task given by the leaders of their
teams was to preserve and enlarge the territories of their personal powers.

Total distrust among the main political players, situational political
alliances that invariably end up in betrayal, off-stage talks, and awkward
confrontations in TV debates have doomed the Ukrainian public to watch all
this fussing permanently.

The conflicts do not only undermine the foundations of statehood. They gnaw
at the political parties and bodies of government.
THE REGIONS PARTY MONOLITHIC?
Take, for instance, the Regions Party, which has always been reputed as
monolithic.

[1] First, the dividing lines between the wealthy but ideologically
uncommitted and the poor but devoted members of that party are
becoming more and more visible.

[2] Second, the party elites of the administrative regions, who supported
Yanukovych but never made it to the central government, are now trying to
make the most of the available resources in their localities. But the ports,
industrial facilities, and land – all the lucrative pieces of the pie that
seemed within reach – are already under control of the Donetsk clan.

[3] Third, the Regions Party is in for electoral turbulence. Currying favor
with Moscow, its leaders never even bother to explain to the taxpayers why
prices for natural gas and tariffs for communal services are soaring. As a
result, one-half of Ukrainians already put the blame on the Yanukovych
government for their material problems.

[4] Fourth, and most important, Rinat Akhmetov and Viktor Yanukovych
differ on a strategic question: in what form should the RP retain its
powers?

Yanukovych is after absolute power in the country.

Akhmetov does not believe that Yanukovych can become the nation’s leader.
Moreover, he does not want him to.

Akhmetov would rather have a prime minister dependent on the political party
and the parliament majority than be a businessman dependent on Yanukovych
the president with unlimited powers.

The RP has too many dangerous ‘reefs and undercurrents’ that are not visible
to the public yet. So far, neither President Yushchenko nor the
pro-presidential bloc Our Ukraine has been able to take advantage of these
circumstances.

The opponents of the RP may not be aiming at weakening it. Why then are they
so reluctant to look for common ground and cooperate in pursuit of national
interests? Why are they not trying to bridge the gap between the electoral
halves? Neither the government nor the opposition has offered a rational
solution.

In the meantime, the people are witnessing permanent conflicts between the
Premier and the President; disagreements between the Premier and the
Parliament (where he has a narrow majority, insufficient for passing
strategic bills); evolving conflicts between the President and the OU; the
standing confrontation between the President and Yulia Tymoshenko; the
antagonism between the central government and the local self-governments
where the OU and the Tymoshenko Bloc have the majority after the elections;
the opposition between the governors and the politically hostile Councils;
the discord between authorities and the public at large.

All these leave no hopes for the country’s systematic and sustainable
development.
INADEQUACY
What causes and inflames these political conflicts? Obviously, the
conflicting sides wrestle for administrative and business resources: the
more power, the bigger coffers. One more goal is to debase the opponent in
the voters’ eyes. This method is not new, but what’s next?

Where are the ideas and systemic approaches to justify the confrontation?
Which of the conflicting political forces offers a rational, breakthrough
program? Which of them shows that it has ideas, managers, and responsible
leaders?

Any press conference given by the Premier or the President begins and ends
with questions about countersigning, unsigned acts, sacked ministers, etc.
Why does the nation have to live with these petty intrigues instead of
discussing issues that are more important?

Political forces are often unable to formulate their own stance on this or
that event. Preoccupied with their narrow interests and problems, they do
not bother to respond to important events.
UKRAINE TURNING INTO A REMOTE PROVINCE
Due to the absence of specific domestic and foreign policies, and the
political leaders’ tunnel-vision, Ukraine is turning into a remote province.

The OU was the only party to come up with an intelligible statement on the
Georgian-Russian conflict. MP Mykola Tomenko, one of the Tymoshenko
Bloc leaders, rebuked the government for its indefinite position with regard
to that conflict. But has the Tymoshenko Bloc made a statement?

Two days after the murder of Russian journalist Anna Politkovskaya it placed
a statement on its website. No other party did. Is the RP indifferent? Is
Oleksandr Moroz no longer concerned about murders of journalists? Why did
Chirac make a statement, and why is Yushchenko tight-lipped?

Why does Ukraine, the former nuclear power that voluntarily renounced the
world’s third largest nuclear arsenal, keep silent about the nuclear test in
North Korea?

There must be something more important – like the abolishment of MPs’
privileges or dismissals of governors – that leaves no room for Georgia,
Politkovskaya, or North Korea.
INFECTED WITH IRRESPONSIBILITY
This political leadership seems to be infected with irresponsibility.

Yanukovych’s statement in Brussels [about Ukraine being unprepared for
joining NATO – A.B.] killed the decade-long efforts by Ukrainian presidents,
foreign ministers, and defense ministers.

Yanukovych may be personally against Ukraine’s accession to NATO (actually,
he doesn’t care but has to gratify his electorate), but his position in the
coalition would be clear if he had said: “Ukraine will ensure its own
security.

To this end, we will drastically increase allocations for defense, because
we have nobody else to count on.” Instead, the government cuts the spending
for defense. What does Yanukovych offer in exchange?

The political leaders pronounce nice declarations and political slogans but
never tell exactly how or when they plan to achieve the goals they set. They
are parasites on the people’s instincts, instead of mobilizing the nation
for systemic and effective changes.

They divert the public attention from the real problems in the national
economy, the judiciary, foreign policy, and business.

Another example is Ukraine’s accession to the World Trade Organization.
Yushchenko, Tymoshenko, Yekhanurov, and Yanukovych have stated it as the
nation’s priority. Moreover, they are positive that Ukraine should join the
WTO as soon as possible (not, “simultaneously with Russia”, as Moroz
insists).

However, the lawmakers have not even considered the score of bills required
for the WTO accession. The Communists and the Socialists are against, but is
that enough to give up on this strategic issue?
OPPOSITION BEHAVING INCOMPREHENSIBLY
Under these circumstances, the opposition is behaving incomprehensibly. The
squabbles between Tymoshenko and [OU faction leader – A.B.] Bezsmertny are
just ridiculous. Both opposition wings seem to be at a loss.

The OU has only just started working on an action plan under the opposition
banner, although it should have been prepared for such an outcome at least
six months ago. All the Tymoshenko Bloc has produced so far was three
initiatives.

The first one was to sack the Yanukovych government (because some newly
appointed ministers had not surrendered their MP mandates).

The second one – to cut the MPs’ privileges – appeared feasible but never
materialized. The third one was the most sensible: to expose the
government’s manipulations with the excessively high prices for domestic
natural gas.

Members of the party whisper stories about attempts to privatize the
infrastructures of Odessa commercial ports, about manipulations of
Ukrtelecom’s financial plan, about bribes for VAT reimbursement, etc.
Why whisper?

Tymoshenko is still stalling about a definite strategy on preterm elections,
a situational alliance with the RP for the sake of invalidating the
political reform, or reliance on public sentiments.

It is her right as a party strategist, but she forgets about the
opposition’s main duty — to keep a watchful eye on authorities.

As far as the latter are concerned, the executive branch is inadequate in
achieving the goals the nation is supposed to attain. The defects of the
amended Constitution are not the only problem that makes the Ukrainian
system of power inefficient.

Once the RP got hold of the top offices, the only instrument it brought was
a bulldozer to clear the ground for its proteges. Who is in the ‘trailer’? –
Back-steppers and skilled extortionists.

Watching Yushchenko’s attempts to concentrate eggheads in his chancellery,
Yanukovych decided to concentrate the intellect of his eggheads by enlarging
the staff of his advisers. There is a difference, however: Yushchenko has
limited opportunities and so has to place three “elephants” on one table.

Yanukovych knows that his team is far from strong intellectually but does
not regroup his staff, leaving its potential idle. Many RP stakeholders are
aware of it, but there is nothing they can do about it.
NON-TRANSPARENCY
It is silly to demand that political forces air their dirty linen, informing
the public about all their internal problems and inter-party discussions.
Any political party has a right to secrets, just like any country has its
own state secrets.

However, there have to be mechanisms of intra-party and public control over
important decision-making. The new political leadership has a definite bias
for closed-door policies.

Practically each session of the Cabinet considers, “anonymous,” documents
like the inquiry to the Constitutional Court on whether it is the
government’s or the President’s right to dismiss governors or questionable
nominations for responsible positions in the real estate sector. Some
decisions are made even outside the Cabinet – like the latest appointment of
Andriy Derkach to the post of Energoatom chief.

The so-called, “anti-crisis coalition,” led by the RP has established a
series of “free economic areas,” (which are, in fact, free from control).
Vice Premier Nikolai Azarov heads the Finance Ministry.

The same political force has its men at the head of the Control and Revision
Department, the State Tax Administration, the Customs Service, the Treasury,
and the Verkhovna Rada Budget Committee.

The Accounting Chamber, headed by insurmountable Valentyn Symonenko, has
demonstrated its readiness to serve the new government. Tatiana Kornyakova
in the Prosecutor General Office is ready to act on Azarov orders. Hence, a
rhetorical question: who will control the huge financial flows in this
country? –

No one but Azarov, whose volunteerism is well-known: he snatches funds out
of any ministry’s budget without explaining the purpose, without consulting
the ministers, and irrespective of which political camp the victimized
minister represents.

There is some internal control in this sphere: Yanukovych did not allow
Azarov to place Yaroshenko at the head of the State Tax Administration and
surrounded Brezvin, who is politically neutral, with loyal men. The
taxpayers, however, can hardly expect any transparency or effective
management in the financial sector.
FUEL AND ENERGY COMPLEX
Another example is the fuel and energy complex. Its executive command is
controlled by the RP. The Verkhovna Rada standing committee on fuel and
energy is headed by Mykola Martynenko of the OU faction, but the majority
of its members represent the anti-crisis coalition.

One can hardly be sure, though, that Vice Premier for Energy Andriy Klyuyev
is abreast with the important aspects of Naftogaz President Yuri Boiko’s
negotiations with Russia’s Gazprom. There are regulations for negotiating
with foreign entities. The Foreign Ministry is to issue directives for each
round of talks.

The Justice Ministry is to keep an eye on the legal correctness of the
documents prepared for signing, and Ukraine’s Ambassador to Russia is to
attend the talks or dispatch embassy staffers.

However, neither of them knows what Boiko is doing. Nobody knows what price
Ukraine has to pay Russia for the promised supplies of natural gas at $130
per 1,000 cu. /m.

Nobody knows what makes Boiko state that Ukraine has to keep its promise not
to raise the tariffs for the transit of Russian natural gas for five years
while RosUkrEnergo, under the same contract, undertook to supply natural gas
to Ukraine at $95 for the same five years. Notably, none of the political
forces in Ukraine raises this question. Why?

There is a serious competition for the access to and control over resources
within the national energy sector. Yanukovych is certainly interested to
have his men, “at the helm.” So is Moscow. It is difficult to say who will
win this competition.

It is more difficult to say whether the competition is for Naftogaz as an
instrument for national energy security or as an instrument for personal
earnings. There are more questions without answers: where is Ukraine’s
energy policy made, in Kyiv or in Moscow?

Will Naftogaz and Yanukovych take further logical steps to change the gas
supply scheme? Will anyone ask the Antimonopoly Committee about
UkrGazEnergo, which supplies tens of billions of cubic meters of gas instead
of only five billion under the initial contract?

Will the Prosecutor General give the green light to the investigators who
have mountains of documented facts of violations within Naftogaz? So far,
no one has even tried to change the situation in this sector or make it
transparent, in the least.
STATE PROPERTY FUND HAS FAILED
The same closed circuit is in the State Property Fund, which has failed this
year’s plan of privatization. The plans for next year are even less
feasible. A number of influential representatives of the anti-crisis
coalition insist on authorizing the fund to sell all property that belongs
to government entities. Why not?

The SPF a) determines the methods of evaluating real estate and leasing
terms; b) entitles private companies to evaluate property at its own
discretion. Now it is going to dispose of all land and immovable resources.
Thus, we have another circuit closed to control.

There are many more examples, but even those mentioned above are enough to
produce an impression that the new political leadership has no intention to
make the most corruption-rife sectors transparent.

The opposition, for its part, has not proven yet to be ready and able to
control these sectors. It has not formulated the questions, which this
political leadership would have to answer while expression is still free in
this country.
WHO IS TO BLAME AND WHAT IS TO BE DONE?
Two election campaigns and two changes of government are preventing one
force from working for the future and the other from feeling confident and
convincing themselves and the nation that the new government has come
prepared to work.

A lack of clear priorities (except for personal business and career
agendas), little respect for principles, the inability to work out a clear
program of social, economic and foreign policy action, and attempts to
substitute it with compilations, which are unable to ensure the interests of
the nation but are rather to weaken the positions of the opponents, are not
the reasons for Ukraine’s prolonged stay at the point of bifurcation.

In my opinion they are all the results of the rotation of politicians.
Kuchma, Fokin, Masol, Horbulin and many other politicians of their
generation have left a trace in the creation of Ukrainian state.

These people were molded by the Soviet system and having obtained access
to the distribution of goods and cash flows some of them contributed to the
limited social involvement of the distribution system.

However, in their previous soviet lives they honestly earned their
scientific degrees and their awards, they became directors, winners of
medals, and what is most important, they learned what state interests are
and they tried to take into account public interests.

That is why, after the collapse of the Soviet Union, when the economy of the
state was privatized, most of the representatives of the, “old school,” not
only cared for themselves — occasionally they cared for the state as well.

I am not calling to return to the ‘Kuchma-ism’, I am simply stating the
change of generations and, unfortunately, the change of problems as a result
of it.

The generation, which has come to power now, is the generation of forty to
forty-five year-olds, who received their life experience in the open markets
of Yunost and Ozerka.

Having got access to the shadow sphere of distribution of capital without
any preliminary training these people (for the most part) grew into talented
businessmen, who, in fact, made their fortunes through robbing the country
and society. This class has been formed. Whether it could be formed
differently is not at issue now.

There are millionaires and multi-millionaires in Ukraine; now, they provide
workplaces to Ukrainian citizens at their enterprises. They should have been
satisfied with this. However, these people also got power: the legislative,
executive and presidential power.

When they got it, most of them turned to be unable to formulate what the
national interest is, what the state interest is and what pubic interest is.
They know only one thing for sure – what private interest is. So, how can
they stand up for non-private interests then?

They do not belong to generation X, who hovered between the Soviet world and
the world, which opened to them after the iron curtain was removed. They do
not search for the answer to the question, “Who we are?” They are generation
‘$’ and they have the right to live.

Moreover, due to the operation of their businesses and enterprises we can
eat out in cafes and restaurants, we can buy apartments and high-quality
locally produced foods, we obtain quality service at dry clearer’s and do
not walk in similar-looking clothes anymore. This country survives in many
respects due to private businesses.

Yet the paradox is that it still survives despite the fact that the owners
of businesses, whose goods and services we consume, are sitting in the
councils and governments at all levels, and are thus impeding the
development of the country!

Most of these people are not made for government. However there is no
way toget rid of them at this point.

That is why the change of government will not rid the society of the
conflicts inside the government, its inadequacy and lack of transparency,
since in the Party of the Regions, as well as in Our Ukraine and BYuT there
are many people who pursue their personal agendas.

Can an early election change the situation? Can these politicians change the
rules of the game by improving the Constitution? What kind of Constitution
should it be? Will they be able to reach a consensus in the search for a
formula to make an amendment to the Fundamental Law?

What should happen for the society to have an actual hope for a sensible and
progressive government of the state? Will the search for new people become a
panacea? Where should they be searched for?

To a certain degree both politicians and society search for answers to these
questions. For now there are no good recipes. We will be grateful to our
readers and authors if they offer their own versions of the answers to these
questions.

For every new day brings new proof of the inability and immaturity of
the Ukrainian ruling clique. Every new day makes Ukraine weaker and
more insecure.

That is why we all should search for the way out of this vicious circle,
which has developed into a system of self-destruction, especially in the
situation when those who are in the position to do something, state that
there is nothing they can do. -30-
———————————————————————————————–
LINK: http://www.mirror-weekly.com/ie/show/618/54796/
———————————————————————————————–
[ return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
20. FEDERALIZATION OR FEUDALIZATION?
What does Yanukovych’s government actually intend to do?

ANALYSIS & COMMENTARY: By Serhiy Hrabovskyi
Deputy editor-in-chief of Suchasnist periodical
Ukrainskaya Pravda, Kyiv, Ukraine, Wed, October 11, 2006

Talks about federalization of Ukraine initiated by the Party of Regions
(PRU) did have some consequences.

To be exact, these talks resulted in the statement made by Viktor Yanukovych
during his visit to Donetsk region. Namely, the premier offered to abolish
local state administrations, which means the end of an all-national vertical
of the executive power.

That also implies certain budget innovations which will help central
government gain a total control over local authorities.

Let’s recall Viktor Yanukovych’s statement made during the fall session of
the parliament regarding the Bill on Local Government which will enable
local administration form regional policy and adopt bills “necessary for the
specific region and serving for specific regional purposes.”

“If we consider this bill during the fall session central and local
governments will have a new kind of relations. There won’t be any local
state administrations. We will have regional and district executive
committees instead. You will elect the chairmen who will be responsible to
their voters.

We will keep developing partnership relations with the regions. Of course
central government will be represented in local authorities by controlling
committees. Of course we will control fiscal policy,” said the premier.

High ranked officials also discuss the necessity of observing the Law on
Local Police which is directly financed by local budgets.

By the way, Article 17 of the Law on Police says: “Local Police is empowered
to form other subunits.”

So, at a first glance, Yanukovych seems to implement pre-election program of
PRU and federal model of political system, although refusing to call it
federal.

In fact if such bills are passed by the parliament, if local authorities are
empowered to adopt their own bills, if relations between the central and
local governments turn into partnership and if local police form some other
subunits, wouldn’t that be a federal state, whatever you may call it?

However, let’s not draw hasty conclusion and wait a bit.

At the same time Yanukovych’s Cabinet of Ministers has included the
following norm to the Draft State Budget 2007: the government has the right
to control the staff of local authorities, axing it if necessary.

To put it in another way, if any official is not loyal to the central
government, whatever authorities he might have, official Kyiv will dismiss
half of his staff which will make it impossible for these local government
bodies to cope with the tasks.

Besides, on the behalf of the government, Viktor Yanukovych presented
amendments to the Law on Local Government.

If adopted, this bill will oblige local government bodies to register their
bills in the state departments of justice on the corresponding levels. The
bill comes into force only approved by the abovementioned agencies.

What does it mean in fact?

That means the government body of state registration will turn into
Prosecutor’s Office and both General and Constitutional Courts as it will
be empowered to refuse the registration of a bill on behalf of the official
government if the bill does not comply with the Fundamental Law or
applicable legislation, restricts the right and freedoms of the citizens,
and finally if it exceeds authority of a local official or a local
government body which issued the relevant bill.

Thus, the Cabinet of Ministers will not just control local authorities but
also become a regional policy-maker.

What is common in these two completely opposite initiatives of the
government and its leader?

[1] First, it is their frank legal nihilism. It is impossible to abolish
local state administrations by adoption of an ordinary bill. Certain
articles of the Fundamental Law have to be amended.

[2] In addition, it is impossible to bring in such amendments during one
fall session. That means it is impossible to introduce new system of local
government already in 2007.

To enable local departments of justice interpret the Fundamental Law and
other articles of legislation certain articles of the Constitution of
Ukraine need to be as well amended.

However, Yanukovych and his teem seem to scare their political rivals with
such initiatives rather than to implement them in life.

Having offered regional politicians new rules of political game where a
vassal gets a free play on his territory in exchange for unconditional
loyalty to the overlord, i.e. the prime minister.

Such free play implies formation of additional local police subunits.
Obviously, local mafia tycoons will legalize their ‘soldiers’ having them
enrolled in the abovementioned subunits. Political preferences of those
soldiers are not important for PRU but the boss must be 100% loyal.

That is a classic feudalism – The vassal of my vassal is not my vassal. One
has to control his vassal paying no attention to flunkies who were called
lance-knights or soldiers of fortune in the Middle Ages.

In other words, instead of declared federalization Yanukovych’s government
actually intends to introduce feudalization of government relations.

Analysis of the Draft State Budget 2007 suggests the same conclusion. The
Cabinet of Ministers desperately wants to get support of the courts, army
and Security Services. Moreover, Yanukovych is ready to pay for that!

The author is convinced that purely economic measures in the draft budget
make it impossible for the president to act as a guarantor of the
Fundamental Law and Supreme Commander-in-Chief.

That is implementation of a ‘quiet coup d’etat’ which will result in the
political system based on the personal affection of security officials to
the Cabinet of Ministers.

In fact, it will be a modern ‘industrial feudalism’. Moreover, in some
aspects, activity of the ‘bosses’ has already gained a feudal nature.

It is quite logical that Ukraine will turn into the system of feudal
provinces given to a ‘lord’ or a ‘prince’ in exchange for unblinking
devotion to the ‘great Don’.

In case lords and princes fail to meet expectations of the Don the latter
will apply financial sanctions stipulated by the budgets, while legal
departments will block their decrees and resolutions.

Will the local police, which will get even poorer, help when some biff-guys
(local police subunits) destroy your vassal’s business? -30-
———————————————————————————————–
Article translated by Eugene Ivantsov.
LINK: http://www.pravda.com.ua/en/news/2006/10/12/6558.htm
———————————————————————————————–
[ return to index] [Action Ukraine Report (AUR) Monitoring Service]
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21. NATO AS ‘GLOBAL PLAYER’ SEEN CREATING MORE FEAR
Ukraine could become a potential “second Poland”..But the internal
Ukrainian situation and Russia’s inevitable response make the question
of Kiev’s participation quite unrealistic

COMMENTARY: By Fedor Lukyanov, Chief Editor
Russia in Global Affairs: “The Global Irritant”
Gazeta.ru website, Moscow, in Russian 12 Oct 06
BBC Monitoring Service. United Kingdom, Monday, Oct 16, 2006

The explosion in relations between Russia and Georgia had been building
up for a long time, but a particular event served as the detonator.

The decision of the North Atlantic Alliance to intensify the dialogue with
Tbilisi inspired Mikheil Saakashvili and infuriated the Kremlin. After one
and one half decades of pretending, Russian politicians are once again
reaching for their pistols when they hear the word “NATO.”

Meanwhile only former rivals in the global confrontation consider the North
Atlantic Treaty Organization “great and terrible.” By the start of the 21st
century, NATO, the victor in the Cold War, found itself in a strange
position.

In Moscow and the capitals of the former Soviet republics, enormous
military-political significance continues to be attributed to the Alliance:
by some with a plus sign and by others with a minus sign.

Outside the boundaries of the former “theatre of military actions,” the role
of the “aggressive bloc” is less and less defined.

Relying on its own forces and the help of selected allies, the United States
does not see it as an instrument for ensuring security. But Europe, above
all “old” Europe, is showing very little desire to fit into the global
operations of the American patron.

Because of the prestige it gained during the Cold War, NATO remains an
attractive symbol.

Countries that are in the transitional stage of development (above all
Southeast and post-Soviet Europe) consider membership in the Alliance the
only available way for them to join the elite club.

The NATO “great powers” look on these aspirations favourably as an unimposed
opportunity to “bind” unstable states and bring them out of the orbit of
Russian influence for good.

While remaining a crucial – above all psychological – factor of post-Soviet
politics, NATO is clearly losing its former significance in the
international arena. New “applicants for membership” – Croatia, Albania, and
Macedonia – will be established at the November summit meeting in Riga.

But future expansion to the European periphery does not help define the new
mission. Most likely it is just the opposite – it drives NATO even deeper
into a conceptual impasse.

Little is changing from the standpoint of the strategic prospects of the
bloc’s success in adding territories. Of all the states that have become
part of NATO since the late 1990s, only Poland has made any contribution to
reinforcing its might.

Warsaw is enthusiastic, since with considerable reason it considers
participating in the Alliance an effective way to enhance its political role
in general.

It is Poland that is saving the NATO mission in Afghanistan, having
responded in September 2006 to the call to expand the contingent. Warsaw is
ready to send 1,000 soldiers of the 2,500 requested by the command. The
other participants have certainly shown no enthusiasm at all from the
beginning.

Ukraine could become a potential “second Poland,” that is, a country that
would try to make a substantial contribution to the organization’s activity
in order to use NATO membership for international self-identification.

But the internal Ukrainian situation and Russia’s inevitable response make
the question of Kiev’s participation quite unrealistic.

Further expansion in the spirit of 1999 and 2004 (when the countries of
Central and Eastern Europe as well as the Baltic Region were admitted) would
not mean switching to new goals, but following the previous algorithm set by
the logic of the results of the Cold War.

A fundamental change in mission and reorientation to future theatres of
military actions– the Greater Near East and (as China’s influence and
ambitions rise) the Pacific Ocean Region – require a different view.

The topic of the updated mission has been actively discussed in the
Euro-Atlantic community since the start of 2006. The initiative naturally
comes from Washington, which in principle would like to adapt its customary
instrument to the changed situation.

In the opinion of Victoria Nuland (formerly Vice President Dick Cheney’s
assistant), the US representative to NATO, the bloc should be transformed
into a “military force able to be deployed throughout the entire world,”
while such countries as Australia, Japan, and South Korea should become its
close partners.

The American researchers Ivo Daalder and James Goldgeier call for changing
the North Atlantic Treaty and removing the provision whereby only European
countries can become new members of the Alliance.

Among the potential participants in NATO operations, experts name, in
addition to the three mentioned above, New Zealand, Brazil, India, and the
RSA.

There are even more radical proposals. Speaking in March 2006 at the
Institute of Contemporary Problems in Jerusalem, former Spanish Prime
Minister Jose Maria Asnar called for a serious examination of the question
of Israel’s admission to the Alliance.

In the event that the scenarios being discussed are realized, the
confrontation in the world would not diminish but would instead become more
intense.

Plans to convert NATO into a global player make Russia, and China, and the
Muslim world apprehensive. Such an approach can push those who sense danger
from a “global NATO” to a desire to create an alternative alliance.

What is more, tracing different “triangles” has been the long-time amusement
of the warriors against American hegemony.

During the Cold War, the confrontation of the two blocs was not only a
source of tension, but in part even a guarantee of security.

In the 21st century, now that the world has become much less manageable and
nonstate “actors” have entered the arena, a bloc-based international order
can certainly provide the first (tension), but will not ensure the second
(stability).

Of course, today’s debates do not mean that NATO will be changed in exactly
that way, although a discussion of the global mission has been announced for
the summit meeting in Riga set for November. There is no guarantee that a
serious transformation could be launched at all.

Washington, which is up to its neck in foreign political problems, may
simply not have enough prestige and forces to transform the Alliance in the
direction it needs and direct it to accomplishing the missions that America
needs.

But if the direction of development does not change, the incorporation of
post-Soviet space will continue to cause alienation between Moscow and the
West.

And at the same time, it will manage to reinforce in Russia the atmosphere
of paranoia that is so effectively used now not only in foreign but in
domestic policy. -30-

————————————————————————————————
[ return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
22. POLAND: RUSSIAN FOREIGN MINISTER “LAVROV’S SUCCESS”
Poland poses lesser “problem” for Russia as EU “malcontent”
In Ukraine, the orange revolutionaries lacked Polish mediation this time.

COMMENTARY : By Antoni Podolski
Gazeta Wyborcza newspaper, Warsaw, in Polish 12 Oct 06
BBC Monitoring Service, United Kingdom, Friday, Oct 13, 2006

Text of commentary by Antoni Podolski, entitled “Lavrov’s success”, by
Polish newspaper Gazeta Wyborcza on 12 October:

The visit by the Russian foreign minister was awaited with excessive hopes
in Poland. The Russian minister, whose visit could after all have been
treated as technical consultations, was received by all the most important
state dignitaries, led by the president and prime minister.

The satisfied minister left, yet the question remains of whether his visit
has brought us closer to resolving at least one of the list of problems in
Polish-Russian relations. It does not seem to me that it has.

Under the current ruling coalition, Poland considers itself to be a country
boldly posing its alleged national interests and staunchly enforcing them. A
climate of self-satisfaction and “a childlike world-power illness” is
visible in European policy.

Poland represents a problem for Russia to the extent that it is a strong and
fully-fledged member of the West, not an isolated, peripheral malcontent
absorbed in its own complexes.

It was not by chance that the apogee of Russian fury against Poland came not
during the rule of the right wing, bandying nationalist rhetoric (frequently
seen as anti-Russian), but rather in 2004-2005, the time just after EU
accession.

It was then that Poland successfully mediated in Ukraine, shoulder to
shoulder with EU diplomats and the largest Western powers.

To other republics emerging from post-Soviet satrapies, Poland appeared as
an attractive partner, a teacher, and a guide, or even simply as a
go-between on the road to the EU and NATO.

From Russia’s point of view this sparked concern, because the Kremlin is
accustomed to treating the entire territory of the former USSR as its own
exclusive sphere of influence.

It was then that the Russian president allowed himself to make undiplomatic
remarks about President Kwasniewski, who besides bore the successive
affronts from the Russians too calmly.

Paradoxically, at the very same time, for the successive Sejm investigative
commissions in Poland, Kwasniewski and his circle became a symbol of Russian
influence in Poland, or of sensational plans to perfidiously turn over more
and more sectors of the Polish economy to Russia.

It was then that Polish-Russian relations simultaneously became almost
completely frozen. The apogee of this came with the affair met by the
incoming government, involving attacks against Polish diplomats in Moscow,
intended as revenge, not even very well concealed, for a similar attack
against Russian teenagers in Warsaw.

Now, a year later, we have a visit paid by Minister Lavrov to Warsaw, and it
is worth asking what in Polish policy has changed in Russia’s perspective,
that the Kremlin is allowing itself to make such a gesture?

Ostensibly nothing; our policy in the East is still verbally bold, active,
and — in the Russians’ view — confrontational towards the Kremlin. Except
that not much is resulting from such patriotic-promethean policy.
ORANGE REVOLUTIONARIES LACKED POLISH MEDIATION
In Ukraine, the orange revolutionaries lacked Polish mediation this time,
and besides, after the Polish experience with the failed PO [Civic
Platform]-PiS [Law and Justice] coalition, it would not likely have been
very credible.

The new/old prime minister Yanukovich slowed down efforts toward NATO
membership, and the postulate of EU prospects for Ukraine, persistently
voiced by Polish politicians out of solidarity, is no longer raising even
impatience in Europe.

And not even because there are no politicians in Germany or Sweden who share
the Polish point of view. But because it is not serious for Poland to be the
advocate of Ukraine’s European aspirations in a situation when the main
ruling parties take a hostile view of the EU.

This has been understood by the Ukrainians themselves, as is symbolized by
the fact that President Yushchenko appointed the former German ambassador
to Ukraine, rather than a Pole, to become his adviser on European affairs.

The Polish authorities are in need of some sort of success on the
international stage, and they seem to still believe in the possibility that
this will come in a warming of relations with Russia. Russia, in turn,
treats Poland as a contester of its policy in the domain of the former USSR
and the most hostile of the considerable EU countries.

And so, I get the impression that the objective of the visit to Warsaw was
on the one hand to sound out to what extent Warsaw, at odds with Germany
and adverse to European integration, is inclined to make some sort of
concessions to Russia.

On the other hand, the Belarusian satrap Lukashenka, now rebelling against
Russian pressure on gas and integration issues, could feel worried at the
fact that Minister Lavrov unexpectedly expressed concern in Warsaw for the
Polish minority in Belarus.

Besides, he was to do so in a way particularly inconvenient for his Polish
hosts, comparing Lukashenka’s repressions to the alleged persecution of the
Russian minority in Latvia.

At the same time, on the issue of a US missile defence shield being located
in Poland, so worrying for the Russians, Poland has most evidently adopted
the point of view imposed by the Kremlin, that this is an issue that needs
to be consulted with Moscow.

Particular surprise is caused by the lack of any Polish reaction to the
opinion the Russian minister expressed following his visit to Warsaw, that
“Poland will take Russia’s interests into consideration when considering the
problem of the stationing of elements of the US missile defence system in
its territory.”

The condition of Polish-German relations, in turn, staves off the prospect
of any sort of common policy of the two countries, menacing for the Kremlin,
and thereby the prospect of Poland exerting a significant influence over the
European policy towards the East.

On these issues, the Polish elite do not have anything new to say in Europe,
aside from a handful of well-known platitudes. And that, as we know, is not
menacing for the Russians. -30-
————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
23. GEORGIA RE-ORIENTS MAIL ROUTES TO UKRAINE

RIA Novosti, Tbilisi, Georgia, Saturday, October 14, 2006

TBILISI, Georgia – Georgia is re-orienting its mail routes to Ukraine after
Russia suspended mail links with its former Soviet ally, the Novosti Georgia
agency said Saturday, referring to Georgia Post Office Co.

Authorities in Georgia arrested four Russian officers on spying charges in
September, but released them later to defuse what was becoming a mounting
crisis. An enraged Moscow responded by suspending all transportation and
mail links with Georgia.

“After Russia suspended mail links with Georgia, the country’s postal
services have experienced a blockade as 80% of the mail exchange was
transited via Moscow,” Ezik Intskirveli said. “We have got in touch with
Ukraine’s national postal operator and asked it for help.”

He said Ukraine had responded promptly and currently handled the largest
portion of Georgia’s mail exchanges, while Georgia was also holding talks
with Turkish, French and German airlines.

Intskirveli added that the Georgia Post Office had urged the Universal
Postal Union to respond to Russia’s violation of the international mail
links convention. -30-
————————————————————————————————–
LINK: http://en.rian.ru/world/20061014/54812626.html
————————————————————————————————-
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
24. EU OFFERS SCHOLARSHIPS TO BELARUSIANS BARRED FROM
THEIR STUDIES, STUDENTS CAN STUDY IN UKRAINE OR LITHUANIA

Associated Press (AP), Brussels, Belgium, Monday, October 16, 2006

BRUSSELS – The European Union launched a scholarship program Monday
for Belarusian students expelled from their home universities for opposition
activities, offering to support their studies in neighboring Lithuania and
Ukraine.

The EUR4.5 million ($5.65 million) program will pay scholarships for 205
students at the European Humanities University in Vilnius and for a further
100 students at universities in Ukraine, the European Commission said.

“I hope that those who study under this scheme will take home with them a
greater understanding of life in a free society, and that they will maintain
their hope and optimism that their country may one day enjoy these
freedoms,” said E.U. External Relations Commissioner Benita Ferrero-Waldner.

Hundreds of students were expelled from their home universities for opposing
Belarusian President Alexander Lukashenko’s authoritarian regime and taking
part in antigovernment rallies after he won a third term as president in
March.

The E.U. program follows similar projects by Poland and the Czech Republic,
which have launched courses for Belarusian students banned from studying in
their home country.

The E.U is also funding independent radio and TV broadcasts into Belarus to
support the opposition movement. -30-
————————————————————————————————
[ return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
25. CABINET SUGGEST PARLIAMENT ALLOCATE UAH 53 MILLION
FOR COMPLETING RECONSTRUCTION OF ODESA OPERA THEATER


Ukrainian News Agency, Kyiv, Ukraine, Friday, October 13, 2006

KYIV – The Cabinet of Ministers has set aside UAH 53 million for completing
the reconstruction of the Odesa State Academic Opera and Ballet Theater in
the 2007 national budget draft, which is being currently examined by the
Verkhovna Rada. Deputy Premier Dmytro Tabachnyk told this to journalists
in Odesa.

He noted that the money for the reconstruction is foreseen in the 2007
national budget draft. ‘The Cabinet of Ministers will ensure dynamic funding
of the theater as soon as the year begins.

In this case, the reconstruction will be completed within the planned terms.
The final amount is UAH 53 million. This money should help complete the
reconstruction process at the theater,’ Tabachnyk said.

He noted that completing the reconstruction of the Odesa Opera Theater is
one of the most important tasks in Ukraine’s culture field.

‘This won’t be a merely reconstructed architectural building, but a highly
technological contemporary theater establishment. All systems in the
theater: rotation of the stage, management of sound and light will be
performed by computers,’ Tabachnyk said.

‘My dream is to come to the Odesa theatre for the opening night in early
October 2007, when it will be celebrating its 120th anniversary,’ he said.

At present, the theater is replacing its stage equipment, repairing stage
premises, laying porcelain tile on the floor in the audience hall and
finishing laying internal engineering networks and assembling energy
equipment.

As Ukrainian News earlier reported, on September 21, the Verkhovna Rada
accepted the Cabinet of Ministers’ 2007 national budget draft for
consideration.

In August, chairman of the Odesa regional state administration Ivan Plachkov
said that the reconstruction of the Odesa State Academic Opera and Ballet
Theater would be completed on October 1, 2007, for the theater’s 120th
anniversary. The reconstruction started in 1987. Over UAH 120 million has
been spent on the reconstruction over 9 years. -30-
———————————————————————————————–
[ return to index] [Action Ukraine Report (AUR) Monitoring Service]
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