Monthly Archives: November 2006

AUR#793 Nov 25 Light A Candle! For Those Who Died In The Holodomor 1932-1933; Gold & Silver: Famines Yielded Bolsheviks Huge Material Profits

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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       

 
                          LIGHT A CANDLE !
For Those Who Died In The Holodomor 1932-1933
                   International Day Of Memory 
                             SATURDAY, NOVEMBER 25, 2006
 
ACTION UKRAINE REPORT – AUR – Number 793
Mr. E. Morgan Williams, Publisher and Editor  
KYIV, UKRAINE, SATURDAY, NOVEMBER 25, 2006 
           –——-  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

                                      SOVIET-ERA FAMINE
Natasha Lisova, AP Worldstream, Kiev, Ukraine, Fri, Nov 24, 2006

2.   UKRAINIAN LEADER YUSHCHENKO URGES MEMBERS OF 
   PARLIAMENT TO RECOGNIZE 1932-1933 FAMINE AS GENOCIDE 
TV 5 Kanal, Kiev, in Ukrainian 1000 gmt 24 Nov 06
BBC Monitoring Service, United Kingdom, Nov 24, 2006

3PRIME MINISTER YANUKOVYCH: HOLODOMOR A TRAGEDY
                              OF THE UKRAINIAN PEOPLE
    “Years 1932-33 are a black page of history of the Ukrainian people, as
      well as of peoples of Russia, Belarus, Middle Asia,” the Premier said.
ForUm, Kyiv, Ukraine, Friday, November 24, 2006

4YUSHCHENKO CALLS ON PARLIAMENT TO ACKNOWLEDGE
   1932-1933 FAMINE AS GENOCIDE AGAINST UKRAINIAN PEOPLE
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 24, 2006

5. UKRAINE SECURITY SERVICE’S DECLASSIFIED DOCUMENTS ON
     1932-1933 FAMINE TO BE PUBLISHED IN SEVERAL LANGUAGES
Ukrinform, Kyiv, Ukraine, Friday, November 24, 2006

6   UKRAINE’S PRESIDENT UNVEILS HOLODOMOR MONUMENT
     “Such monuments should be erected in thousands of Ukrainian villages.”
ForUm, Kyiv, Ukraine, Friday, November 24, 2006

 
7. UKRAINIAN ARMED FORCES TO HONOR MEMORY OF VICTIMS
          OF FAMINE AND MASS REPRESSIONS ON NOVEMBER 25
                        Army joins the national action ‘Light A Candle!’
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 24, 2006

8.                   LEGACY OF FAMINE DIVIDES UKRAINE
By Helen Fawkes,  BBC News, Kiev
BBC, United Kingdom, Friday, November 24, 2006

9.   UKRAINIAN FAMINE OF 1932-1933 SHOULD BE RECOGNIZED

                    AS GENOCIDE, SPEAKER MOROZ STATES
Interfax Ukraine News, Kyiv, Ukraine, Thursday, November 23, 2006

10UKRAINIAN PARLIAMENT TO VOTE ON BILL DECLARING
     1932-1933 FAMINE AN ACT OF GENOCIDE ON NOV 28 – DEC 1
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 24, 2006

11UKRAINIAN FOREIGN MINISTRY SAYS PARLIAMENT NOT
    RECOGNIZING FAMINE AS 1932-1933 AS GENOCIDE PREVENTS
                             OTHER CONTRIES’ RECOGNITION
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 24, 2006

12OLEKSANDR SLIPCHENKO: RECOGNIZING THE HOLODOMOR
        AS AN ACT OF GENOCIDE IS A MORAL RESPONSIBILITY
                          TO THE MEMORY OF ITS VICTIMS
INTERVIEW: by Oleksandr Slipchenko, Ambassador of Ukraine & leader
Ministry of Foreign Affairs’s working group on problems of the Holodomor
BY: Mykola Siruk, The Day newspaper, No. 203
Kyiv, Ukraine, Wed, Nov 22, 2006 published in Ukrainian
Published in English by the Action Ukraine Report (AUR), #793, Article 12 
Kyiv, Ukraine, Saturday, November 25, 2006

 
13HUMAN TRAGEDY NEEDS TO BE HONOURED, NOT EXPLOITED
FROM THE EDITOR: Peter Dickinson
What’s On magazine, No. 43/2006, Kyiv, Ukraine, 24-30 Nov 2006

14.     UKRAINIAN PEOPLE’S PARTY CALLS ON PRESIDENT TO

                           OF 1932-1933 FAMINE AS GENOCIDE 
Ukrainian News Agency, Kyiv, Ukraine, Thu, November 23, 2006
                  UKRAINIAN NATION TO LEARN THEIR HISTORY,
                   ACADEMICIAN IHOR YUKHNOVSKYI BELIEVES
Ukrinform, Kyiv, Ukraine, Friday, November 24, 2006

16“SO-CALLED” HOLODOMOR, CONSEQUENCES FOR UKRAINE
By Oleksandr Kramarenko, Luhansk
The Day Weekly Digest in English, #37, Kyiv, Ukraine, Tue, 21 Nov 2006

17STATEMENT ON THE OCCASION OF THE COMMEMORATION
                   OF GREAT FAMINE-HOLODOMOR IN UKRAINE                          

 STATEMENT: by Ukrainian Canadian Congress (UCC)
Winnipeg, Manitoba, Canada, Friday, November 24, 2006

18. GARETH JONES: THE MAN WHO KNEW TOO MUCH. HOW A

                  FAMINE-GENOCIDE AND MET A TRAGIC FATE
Marta D. Olynyk, Canada
Community Announcements (Toronto, Ottawa, and Montreal)
Canada, Thursday, November 23, 2006 

19ALL AUSTRALIANS INVITED TO REMEMBER THE MILLIONS
          OF VICTIMS OF 1932-1933 GREAT FAMINE IN UKRAINE
Australian Federation of Ukrainian Organisations
Representing 24 Peak Ukrainian Organisations in Australia
Member of Ukrainian World Congress, Australia, Thu, 23 Nov, 2006
Published by Action Ukraine Report #793, Article 19
Kyiv, Ukraine, Saturday, November 25, 2006

20.                       GOLODOMOR UCRANIA 1932-33
           Ass. dos Ucranianos em Portugal (SPILKA) – Homenagem
From: Mariya Dets, ucranianosemportugal@gmail.com
To: Morgan Williams,
mwilliams@sigmableyzer.com 
Sent: Wednesday, November 22, 2006
 

Published by the Action Ukraine Report #793, Article 20
Kyiv, Ukraine, Saturday, November 25, 2006
 
21UKRAINE: THE FAMINE OF 1921-22: CONFISCATION OF CHURCH
           TREASURES; THE GREAT FAMINE OF 1932-33 “TORGSINS”
“A History of the Destruction and Preservation of Cultural Treasures”
By Serhii Bilokin, Doctor of Historical Sciences
Book: “Ukrainian Sculpture And Icons, A History of Their Rescue”
Exhibition Catalogue, Rodovid Press, Kyiv, Ukraine, 2006, Pgs 26-29.
Reprinted With Permission by the Action Ukraine Report (AUR)
#793, Article 22, Kyiv, Ukraine, Saturday, November 25, 2006
 
22                LE TABOU DE L'”HOLODOMOR” UKRAINIEN                          
LE MONDE, Paris, France, Friday, November 24, 2006
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1
    UKRAINE MARKS 73RD ANNIVERSARY OF FORCED
                                     SOVIET-ERA FAMINE

Natasha Lisova, AP Worldstream, Kiev, Ukraine, Fri, Nov 24, 2006

KIEV – If a black flag appeared waving in the air above a Ukrainian village
in 1933, Ukrainians knew that every single resident was dead, their starved
bodies waiting to be collected.

On Saturday, this ex-Soviet republic marks the 73rd anniversary of the Great
Famine – a tragedy orchestrated by Soviet dictator Josef Stalin that
continues to haunt and divide the nation of 47 million.

President Viktor Yushchenko wants the deaths of an estimated 10 million
recognized as genocide, but Russia has warned Kiev against taking that step.

During the height of the Soviet-era famine, 33,000 people died of hunger
every day. Cases of cannibalism were widespread as desperation deepened.
Parents ate their children, and adult children ate elderly parents.

“Cats were eaten, dogs were eaten, then people started eating each other,”
Anna Vasilieva, 85, told The Associated Press.

She said her younger brother, Oleksiy, once returned home and told her he
had just seen their neighbor eat a boiled hand. “He told me, ‘I also want to

eat an arm, I want to eat fingers,'” said Vasilieva.

Stalin provoked the famine as part of his campaign to bring peasants under
control by forcing them to give up their land and join collective farms – a
policy that was particularly calamitous for Ukraine, with its vast stretches
of fertile farmland.

The overwhelming majority of deaths were in Ukraine, which historians

say lost one-third of its population, and Stalin’s actions came amid other
Soviet attempts to stamp out the growth of Ukrainian nationalism.

Authorities ordered each village to provide the state with a certain amount
of grain, but the demands exceeded crop yields and as village after village
failed to meet the requirements, they were put on a blacklist.

That meant that all food was taken from the village, but residents were
prohibited to leave – effectively condemning them to starvation.

The famine was kept secret by the Soviet authorities, but information
trickled out over the years and Ukraine declassified more than 1,000 files
documenting it in 2003.

Some 10 countries, including the United States, have recognized it as a
genocide. But the pro-Western Yushchenko’s attempts to have it

acknowledged as such in Ukraine have met with resistance.

Russia argues that the orchestrated famine did not specifically target
Ukrainians but also other peoples in the Soviet agricultural belt including
Russian and Kazakhs.

Russia, the successor state to the Soviet Union, has been reluctant to tread
too deeply on Soviet-era crimes.

Some lawmakers allied to Prime Minister Viktor Yanukovych, bowing to

Kremlin complaints, have proposed dropping the word genocide from a bill
on the 1932-33 Great Famine, suggesting it be called a tragedy instead.
Ukraine’s Communists also strongly oppose declaring the famine a genocide.

On the eve of the anniversary, Yushchenko on Friday appealed to politicians
“to get off their knees and name this page of our history.”

“When 10 million people die over two (years), it is not a question open for
discussion with anybody, it is genocide,” Yushchenko said.

At its height, bodies of dead people lay across city streets waiting for
police to take them. Many parents abandoned their children at railway
stations, hopeful police would pick them up and take them to orphanages
where there was food.

Many villages simply died away. Authorities confiscated what grain they
found.

“They (the authorities) even took food from pans and pots, (they) looked for
it everywhere,” said Dmytro Kalenyk, 88, one of two people in his 14-member
family who survived the famine. He said his grandmother’s stomach exploded
when she ate bunch of beets he had managed to find.

“It was an awful death. The whole room was stained with my grandmother’s
insides,” said Kalenyk, who in 1992 became the head of an association to
investigate the reasons and consequences of the famine in a bid to inform
Ukrainians about what happened.

Now the biggest concern for Kalenyk, who recently suffered a stoke, is

that a worthy monument to the victims be erected in Kiev.
On Saturday, Yushchenko planned to lay the cornerstone for a memorial
complex, and candles were to be lit across the country to commemorate the
victims.

Ukrainians who resisted the confiscation of food were sent to Siberia;
simply taking a wheat ear from a field could result in a death sentence.

In the first five months of 1933, 55,000 people were sent to Siberia and
2,100, including women and children, were shot. Meanwhile, Stalin denied

all accounts of a famine.

When one of Ukraine’s political leaders complained to him and asked for
help, Stalin accused him of “creating fairy tales of hunger” and advised him
to resign from the Communist Party and to write children’s books “for
fools.”                                          -30-
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2.    UKRAINIAN LEADER YUSHCHENKO URGES MEMBERS OF
   PARLIAMENT TO RECOGNIZE 1932-1933 FAMINE AS GENOCIDE 

TV 5 Kanal, Kiev, in Ukrainian 1000 gmt 24 Nov 06
BBC Monitoring Service, United Kingdom, Nov 24, 2006

KIEV – [Presenter] Ukrainian President Viktor Yushchenko has again called on
the Supreme Council [parliament] to recognize the 1930s famine as an act of
genocide against Ukrainian people.

Yushchenko was making remarks at the opening of an exhibition of [the
famine-related] archive documents declassified by the Security Service of
Ukraine [SBU]. The exhibition called Declassified Memory is being held at
the Ukrainian House in Kiev.

The president recalled that a famine bill tabled at the Supreme Council
provides for administrative responsibility for making public statements that
deny the fact of genocide. [Passage omitted: The exhibition is going to get
the international status.]

[Yushchenko] I believe that when we are talking about the tragedy of
Ukrainian people in 1932-1933, you can call it nothing but an act of
genocide against the Ukrainian nation. This is why dozens of parliaments

in the world have expressed precisely this stance towards our history.
 
I want to call on all Ukrainian politicians to adopt a clear stance on this
matter, be courageous and get up from their knees.           -30-
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3.  PRIME MINISTER YANUKOVYCH: HOLODOMOR A TRAGEDY
                           OF THE UKRAINIAN PEOPLE
 “Years 1932-33 are a black page of history of the Ukrainian people, as
  well as of peoples of Russia, Belarus, Middle Asia,” the Premier said.

ForUm, Kyiv, Ukraine, Friday, November 24, 2006

KYIV – Prime Minister of Ukraine Victor Yanukovych names Holodomor a
tragedy of the Ukrainian people. Yanukovych told journalists in Minsk after
the end of the meeting of the Council of head of governments of countries –
CIS members.

“Years 1932-33 are a black page of history of the Ukrainian people, as well
as of peoples of Russia, Belarus, Middle Asia,” the Premier said.

According to him, November 25 he will visit graves of his relatives and in
the village Yanuki, Vetebskaya region.

Yanukovych expressed a regret that during today’s meeting with colleagues
from CIS countries he could not discuss perspectives of possible recognition
of Holodomor as an act of genocide against the Ukrainian nation by CIS
countries.                                           -30-
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LINK: http://en.for-ua.com/news/2006/11/24/175032.html

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4. YUSHCHENKO CALLS ON PARLIAMENT TO ACKNOWLEDGE
  1932-1933 FAMINE AS GENOCIDE AGAINST UKRAINIAN PEOPLE

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 24, 2006

KYIV – President Viktor Yuschenko calls on the Verkhovna Rada to

acknowledge the famine of 1932-1933 as genocide against Ukrainian people.
He disclosed this opening exhibition of the Security Service of Ukraine
archive documents on the famine.

“I want to call on all Ukrainian politicians to define their position
concerning the issue and to be courageous,” Yuschenko said.

He said that Ukrainian famine was admitted by parliaments of 10 countries.
The president says that administrative responsibility proposed by him is an
adequate step.

He said that some European countries have responsibility for denial of
Holocaust. “There are countries foreseeing 15-17 year of imprisonment for
denial of Holocaust,” the president said.

He said that events of 1932-1933 were the genocide of the nation, as about
10 million died then. The president called the tragedy horror for Ukraine.

“It is hard to realize the tragedy, as it took place on the territory, which
has been called European garner for many years,” the president said. He

also said it was horrible that the event has not been remembered for 75
years.

“We were taught to forget it. We were taught for 75 years to forget
fundamental canon of Orthodoxy,” the president said.

The exhibition of archive documents of the Security Service of Ukraine
documents on the famine entitled Declassified Memory contains a part of
declassified materials of Soviet security agencies.

According to Security Service Chairman Ihor Dryzhchanyi, all famine
documents were declassified on August 18. The Service has 5,000 pages of
such documents. Those are archive criminal cases, directives, photos and
letters. Currently, the documents are available for scientists and can be
watched on Security Service website.

Dryzhchanyi said that taking into account interest of journalists and people
in these historical events, the exhibition can be held at the international
level. According to Dryzhchanyi, the Security Service has started to open
documents on the famine four years ago.

As Ukrainian News earlier reported, in early November 2006, Yuschenko
submitted the bill On 1932-1933 famine in Ukraine to the Verkhovna Rada and
proposed to acknowledge the famine as genocide against Ukrainian people.

According to various estimates, from three to seven million people died of
the famine in 1932-1933. Parliaments of ten countries acknowledged the
famine of 1932-1933 as the genocide against the Ukrainians.

———————————————————————————————–
FOOTNOTE: I attended the opening of the Holodomor Exhibition in
Kyiv today.  The Exhibition was a good start but needs considerable
work before it could be held at the international level. Many key Soviet
documents used by scholars to document Soviet actions that caused
the induced starvation that killed millions were not on display.  There
were not enough significant documents on display to make the
exhibition really interesting from a historical viewpoint. Reports indicated
the Exhibition was put together within the last two weeks and this fact
is rather evident.
 
Many of the photographs on display did not come from the SBU files
for sure as the SBU does not have any photographs in their files showing
famine victims.  Many of the photographs are the same standard ones that
have been shown for many years regarding village life in the early 1930’s
and the dekulakization program. There were many photographs and
new posters in the display, actually more that there were documents.
 
Unfortunately many of the photographs on display showing famine
victims came from other unidentified files/archives and included a
sizable number of photographs taken along the Volga River in Russia
during the 1921-1923 famine and have nothing whatsoever to do with
Ukraine. It was very alarming and surprising to have an Exhibition
claiming to be a SBU sponsored Exhibition that contained so many
glaring, gross and obvious historical errors in the photographs.   
AUR EDITOR Morgan Williams
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5. UKRAINE SECURITY SERVICE’S DECLASSIFIED DOCUMENTS ON
      1932-1933 FAMINE TO BE PUBLISHED IN SEVERAL LANGUAGES

Ukrinform, Kyiv, Ukraine, Friday, November 24, 2006

KYIV – The “Declassified Memory” exhibition in Kyiv presented as many as
5,000 pages of documents of USSR’s entities, displaying the tragic event of
the 1932-1933 famine.

The exhibition has on a display orders, directives and secret documents of
the USSR Main Political Department on repression in Ukrainian villagers

and criminal cases of victims of the totalitarian policy of the communist
regime, pictures, and witnessing.

Taking the floor at the solemn opening ceremony, President Viktor

Yushchenko stressed that the 1932 to 1933 famine resulted in the death toll
of 10 million people, which is more versus during the WW II.  The most
severe crime is that the Ukrainian nation was forced to forget about these
events.

According to Chief of the Security Service Ihor Dryzhchanyi, the SS’s staff
were for several years engaged in searching for secret documents on famine.
Ihor Dryzhchanyi noted that the SS intends to prepare some data on the
famine consequences, and publish them in several languages.   -30-

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FOOTNOTE: I certainly hope the SBU sticks to publishing documents
and does not bring into any of their publications the photographs of
famine victims taken in Russia in 1921-1923 along the Volga River such
as they had in their Holodomor Exhibition yesterday in Kyiv. 
AUR EDITOR
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6. UKRAINE’S PRESIDENT UNVEILS HOLODOMOR MONUMENT
  “Such monuments should be erected in thousands of Ukrainian villages.”

ForUm, Kyiv, Ukraine, Friday, November 24, 2006

KYIV – Victor Yushchenko has attended a ceremony to unveil a monument
honoring the Holodomor victims in the village of Serhiivka (Chernihiv
oblast), president’s press office reported. In his speech, the President
said such events were necessary to preserve national memory.

“Such monuments should be erected in thousands of Ukrainian villages. This
is our common obligation: we must remember what our grandparents and great
grandparents went through,” he said, thanking the locals for their interest
in those tragic events and urging all Ukrainians to renew sites where the
Holodomor victims were buried.

The President reiterated that Joseph Stalin and his regime were to blame for
the tragedy. He said the fact of genocide against the Ukrainian nation could
not be questioned.

“I want the nation and its politicians to understand this,” he said. “Our
voters are responsible that there are still politicians in Ukraine who deny
the genocide.”

Yushchenko called on witnesses to those events to share their memories with
Holodomor researchers.

The President observed one minute of silence and prayed to honor the dead.

A snowball tree garden was then opened near the monument.  Yushchenko
and Serhiivka pupils put yellow-and-blue ribbons on the branches.

Chernihiv Governor Mykola Lavryk, ex-Minister of Culture Ihor Likhovy, who
now heads the Secretariat Office to Preserve Cultural Heritage, Ukrainian
Diaspora Relations Coordinator Ivan Dratch and Prosvita Association Head
Pavlo Movchan attended the ceremony.                      -30-
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LINK: http://en.for-ua.com/news/2006/11/24/165713.html

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7. UKRAINIAN ARMED FORCES TO HONOR MEMORY OF VICTIMS
         OF FAMINE AND MASS REPRESSIONS ON NOVEMBER 25
                       Army joins the national action ‘Light A Candle!’

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 24, 2006

KYIV – The Ukrainian Armed Forces are going to honor memory of victims

of famines and mass political repressions on November 25. Ukrainian News
has learned this from the Armed Forces’ press service.

According to its message, the army joins the national action ‘Light A
Candle!’ It also holds a series of measures to raise national self-

consciousness and respect to Ukraine’s historical past in the crew.

The press service reported, that on November 25 all the military bases,
institutions and establishments of the Armed Forces lower the state flag.

At 16:00 servicemen will honor memory of the victims of famines and
political repressions with a minute of silence, during which all the other
measures will be stopped.

This day the military men will put in order monuments and memory signs,
burial places of victims of famines and political repressions, participate
in mass-meetings honoring the victims’ memory and lay flowers.

On November 25 the Armed Forces plan to hold information and propaganda
measures, meetings with writers and scientists, show documentary films about
famines and mass political repressions in Ukraine.

The army also plans to make book exhibitions and presentations of books
devoted to honoring memory of victims of famines and political repressions
in libraries, clubs and garrison officer houses.

The statement tells, that all this measures will be held in accordance with
the President’s order as to the Day of Memory of victims of famines and

mass political repressions.

Higher military educational institutions will hold memory lectures and
lessons, pedagogic hours lighting famines’ consequences.

As Ukrainian News reported before, Foreign Affairs Ministry announced

that non-recognition of the Famine of 1932-1933 as Genocide against the
Ukrainians by the Verkhovna Rada prevents similar recognition by the other
countries.

The Rada considers the draft bill on recognizing the Famine of 1932-1933 as
Genocide against the Ukrainians next week (November 28-December 1).

Yuschenko called on the Rada to adopt the bill recognizing the Famine of
1932-1933 as Genocide against the Ukrainians and introduce administrative
responsibility for public denial of this event.                -30-
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8.               LEGACY OF FAMINE DIVIDES UKRAINE

By Helen Fawkes,  BBC News, Kiev
BBC, United Kingdom, Friday, November 24, 2006

A row of emaciated Ukrainian children stare out of a photograph. Their
gaunt faces are full of despair and their bodies are little more than
skeletons.

It is one of many images being shown on Ukrainian television in the run-up
to Memorial Day, which is being held this weekend to mark the Soviet-era
famine.

It was one of the bleakest moments in Ukraine’s history. The famine which
happened between 1932 and 1933 killed up to 10 million people.

It is widely believed to have been caused by the actions of the communist
regime. The harvest was confiscated and people starved to death.

It was part of a brutal campaign by the Soviet dictator Joseph Stalin to
force Ukrainian peasants to join collective farms.

Ukraine is now trying to get this mass starvation recognised by the United
Nations as an act of genocide.

But the issue is highly controversial and Russia is strongly against the
move.
                                        ‘SCARED’
Now in his eighties, Ivan Leschenko was a child during the famine. He
remembers how some people resorted to cannibalism.

“Such things really did happen. I know that one of my relatives ate human
flesh. Just imagine how bad the situation was that people were forced to do
that.”

On the eve of Memorial Day, Ivan visited the capital’s monument to the
victims of the man-made famine to pay his respects.

“I remember walking the streets and seeing dead, bloated bodies of children
and adults all over the place. I went up to one boy, he was saying something
and suddenly he started shaking and then passed away,” Ivan says.

“I was so scared; it was the most frightening experience of my life.”
                               ‘DANCING ON GRAVES’
The famine had a devastating impact on villages across Ukraine. It is
thought that around a quarter of the population was wiped out.

At the KGB archive in Kiev, recently released files are piled up on an
old-fashioned desk. These are said to demonstrate how the famine was
artificially engineered.

One document is an order from Moscow to shoot people who steal food.
It is signed by Stalin in red ink.

Now Ukraine’s president wants what happened to be recognised as an act
of genocide.

Russia admits this was an awful tragedy but is angry at claims that it was
an attempt to destroy the Ukrainian nation. It says that other parts of the
former USSR were affected.

This issue has also divided Ukraine’s parliament. Last week MPs refused to
vote on a law proposed by the president. He wanted parliament to declare
that the famine was an act of genocide.

The ruling coalition which includes the Communist Party is pro-Russian.
It is led by the president’s rival, Prime Minister Viktor Yanukovych – the
man who was defeated by mass protests in the 2004 “Orange Revolution”.

“This is like dancing on the graves of the dead. Before it’s been proved
this was an act of genocide, the Orange authorities are doing their best to
persuade everyone that it was,” says Sergei Gmyrya, a historian for the
Communist party.

“I am furious that this is being used by the politicians in their games,” he
says.
                             FRAGILE RELATIONS
For Ukraine’s pro-Western President Viktor Yushchenko this is personal.
“In my family we remember my grandfather Ivan, a strong and hard-
working man who died. In my local village alone 600 people died,” he says.

“It is important to realise that politics were behind the genocide. It’s
terrifying to know that the only aim of that experiment was to exterminate
Ukrainian people.”

Last year the president initiated the first ever Memorial Day to honour the
victims. This Saturday, Ukraine will once again pause to remember the
tragedy.

Kiev is determined to push for a UN resolution on the issue. But this could
put the president on a collision course with his pro-Russian opponents.

It also threatens to damage the country’s fragile relations with Moscow.
———————————————————————————————-
                                       GREAT FAMINE
Called Holodomor in Ukrainian – meaning murder by hunger
About a quarter of Ukraine’s population wiped out
Seven to 10 million people thought to have died
Children disappeared; cannibalism became widespread
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LINK: http://news.bbc.co.uk/2/hi/europe/6179818.stm
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9. UKRAINIAN FAMINE OF 1932-1933 SHOULD BE RECOGNIZED
                  AS GENOCIDE, SPEAKER MOROZ STATES
Interfax Ukraine News, Kyiv, Ukraine, Thursday, November 23, 2006

KYIV – Verkhovna Rada Chairman Oleksandr Moroz has said that the

Ukrainian famine of 1932-1933, also known as Holodomor in Ukraine,
should be recognized as genocide against the Ukrainian people.

“I cannot answer for the whole parliament. As for me, I will be pressing to
have a vote that this was genocide against the people who lived in Ukraine
then rather than against people of Ukrainian blood,” he said in an interview
with the Era radio on Thursday.

He said, however, that he didn’t want the question of Holodomor split
Ukrainian society. He said the tragedy also affected Russia.    -30-
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10.   UKRAINIAN PARLIAMENT TO VOTE ON BILL DECLARING
     1932-1933 FAMINE AN ACT OF GENOCIDE ON NOV 28 – DEC 1

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 24, 2006

KYIV – Next plenary week (November 28- December 1) the Verkhovna

Rada will be considering the bill on declaring the 1932-1933 Famine an act
of genocide against the Ukrainian people. Parliament Speaker Oleksandr
Moroz made this statement to the press. “The bill will be put on the next
week’s agenda,” he said.

Moroz said the parliament would have an objective debate on this bill. At
the same time, Moroz believes it is necessary to recognize an act of
genocide not against the Ukrainian nation but against the Ukrainian people
because people of different nationalities have suffered.

“My personal position is that we have to recognize the mischief not against
the Ukrainian nation, but against the Ukrainian people because it concerned
all peoples in Ukraine,” Moroz said. Moroz thinks the bill could be revised
and passed in Rada.

“In a juridical sense, all inaccuracies of the bill will be rectified and
this document can be passed,” the speaker said.

He said the bill submitted by President Viktor Yuschenko was similar to

the bill proposed by deputies of the Party of Regions faction, the only
difference is that the latter one declared the famine a crime of Stalin
against the people while the president insisted on declaring it an act of
genocide against the Ukrainian nation.

As Ukrainian News earlier reported, the president called on the Verkhovna
Rada to acknowledge the famine of 1932-1933 as genocide against the
Ukrainian people and introduce administrative responsibility for denying
this fact in public.                                    -30-
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11.  UKRAINIAN FOREIGN MINISTRY SAYS PARLIAMENT NOT
    RECOGNIZING FAMINE AS 1932-1933 AS GENOCIDE PREVENTS
                         OTHER COUNTRIES’ RECOGNITION

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 24, 2006

KYIV – The Ministry of Foreign Affairs has said that the Verkhovna Rada’s
delay with the recognition of the Ukrainian famine of 1932-1933, also known
as Holodomor, as genocide prevents from the recognition by other states.

Yaroslav Baran, deputy head of the Foreign Ministry’s department for
Ukrainians abroad, told this to the press.

Representatives of many countries…express their surprise that Ukraine
itself has not endorsed a relevant political act and the issue is stalling
very much relevant work,” Baran said.

He said some countries would not recognize Holodomor as genocide before
there was a relevant decision in Ukraine.

“The problem exists and it should be settled. That is why, we have big hopes
that the Verkhovna Rada would positively consider the draft bill on
Holodomor of 1932-1933 submitted by President Viktor Yuschenko on

November 2,” Baran said.

Andrii Beshta, acting head of the Foreign Ministry’s department for the UN
and other international organizations, said some countries that didn’t want
to recognize Holodomor genocide might use the fact of absence of the
decision in Ukraine as an argument not to recognize Holodomor genocide.

Baran said there was some progress in the issue abroad. In particular, the
parliaments of Finland and Austria have decided to hold special parliament
hearings on Holodomor.  He said the problem existed in Russia and the Czech
Republic.

“There is a problem in the Czech Republic. There is sympathy with Ukrainian
people there, however, there is also an opinion that such issues as
Holodomor should be left for historians and should not be considered by
politicians,” Baran said.

As Ukrainian News earlier reported, the Verkhovna Rada will be considering
the bill on declaring the 1932-1933 Famine an act of genocide against the
Ukrainian people next plenary week (November 28 through December 1).

President Viktor Yuschenko called on the Verkhovna Rada to acknowledge the
famine of 1932-1933 as genocide against Ukrainian people and to introduce
administrative responsibility for denying the tragedy publicly.      -30-
————————————————————————————————-

FOOTNOTE: The Ukrainian Parliament passed a strong resolution in
May of 2003 declaring the events of 1932-1933 a genocide. AUR EDITOR
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12. OLEKSANDR SLIPCHENKO: RECOGNIZING THE HOLODOMOR
        AS AN ACT OF GENOCIDE IS A MORAL RESPONSIBILITY
                          TO THE MEMORY OF ITS VICTIMS

INTERVIEW: by Oleksandr Slipchenko, Ambassador of Ukraine & leader
Ministry of Foreign Affairs’s working group on problems off the Holodomor
BY: Mykola Siruk, The Day newspaper, No. 203
Kyiv, Ukraine, Wed, Nov 22, 2006 published in Ukrainian
Published in English by the Action Ukraine Report (AUR), #793, Article 12 
Kyiv, Ukraine, Saturday, November 25, 2006


A working group was created in 2006 by order of the Minister of Foreign
Affairs, Borys Tarasyuk, with the purpose of coordinating the Ministry of
Foreign Affair’s (MFA) work on the problems of the Holodomor.

This group was charged with preparing proposals and materials for foreign
institutions and with rendering an account of work carried out in this area
to higher leadership.

Oleksandr Slipchenko, Ambassador of Ukraine and leader of the MFA’s working
group on the problems of the Holodomor, tells Day about the work that has
already been done in this direction and what tasks lay ahead for the MFA in
gaining world-recognition of the Holodomor as genocide of the Ukrainian
people.

[The Day] – Lately, the topic of the Holodomor has become the subject of an
exchange of statements, or more like commentaries, between Ukraine’s and
Russia’s Departments of Foreign Affairs. In your opinion, what has elicited
this?

[Amb. Slipchenko] – The work of bringing to light the problems of the
Holodomor was being conducted earlier. But in the last few years, it has
significantly expanded in scope.

For example, in 2003 in conjunction with the 70th anniversary of the
Holodomor at our initiative a joint statement of 63 countries was issued in
the UN, in which statement the Holodomor was first recognized as a national
tragedy of the Ukrainian people.

Even then Russia’s position-which objected to the artificial famine being
directed specifically against Ukraine-prevented the ratification of our
draft resolution with the corresponding qualification of the Holodomor.

Last year, a wide range of activities were carried out in over 80 countries
of the world that included holding mourning campaigns, lectures and round
table discussions, exhibits of archive materials, memorial classes, showings
of movies, publications aimed at informing the international community and
clarifying these positions of Ukraine.

The Ministry and foreign institutions are carrying on just as actively in
this vein now. The basic emphasis of all of these activities lies in
achieving widespread international recognition of the Holodomor precisely as
an act of genocide of the Ukrainian people committed by the authoritarian
Stalinist regime, and to solidify proper understanding of the tragedy of the
Holodomor in these and other documents.

It is obvious that specifically this activity that you have rightly noted
has caused Russia’s negative reaction, although this, frankly speaking,
evokes astonishment, to say the least.

[The Day] – Not long ago the Russian MFA once again sharply criticized
Ukraine with regards to the fact that the Ukrainian side is blatantly
broaching the issue of recognizing the Holodomor. What do you think: will
Ukraine succeed in convincing the Russian side of the necessity of
recognizing the Holodomor?

[Amb. Slipchenko]-  Actually such statements by the Russian side, as we
discussed before, were made.

By the way, our press service and the Minister responded to them, who in a
calm tone during the recent first session of the bilateral Subcommittee on
International Cooperation explained to the Russians that it is unnecessary
to transfer similar false interpretations to the context of present
Ukrainian-Russian relations.

This is absolutely irrelevant because it does not foster normal
understanding and formation of an adequate position that is ultimately
absolutely obvious.

By the way, in the spring of this year Minister Tarasyuk initiated a
resolution on the issue of the Holodomor in a session of the Council of
Ministers of Foreign Affairs of the NIS.

He presented a proposal to pass a statement or address in the NIS to the
international community in conjunction with the 75th anniversary of the
Holodomor.

Lavrov does not disagree with the preparation of such a document, but in his
opinion, the document should condemn the politics that led to “a massive
famine, the victims of which became representatives of various peoples of
the USSR.”

We, of course, do not dispute the fact that millions of inhabitants of
Kazakhstan and Russia perished as a result of a massive famine last century
at the beginning of the 1930’s.

That is why in Ukraine we are not inclined to revise the historic past, and
especially not to monopolize the right to condemn the criminals of
Stalinism.

We view our desire to receive worldwide recognition of the Holodomor as
an act of genocide foremost as a moral responsibility to the memory of the
victims particularly in Ukraine, where the famine took on an unforeseen
scope and targeted character.

But here there is also an external aspect, since we all, including the
member-participants of the NIS, have the international responsibility to
prevent in every way forms of totalitarian and dictators’ ideologies.

Namely, such work as recognizing the Holodomor as genocide is a fulfillment
of our responsibilities within the framework of the UN Convention on the
Prevention of the Crime of Genocide.

This document contains precise definitions that give us the basis for
obtaining international recognition of the famine in Ukraine precisely as
genocide.

Unfortunately, the last century brought too many instances of genocide.
Again, this does not mean that we are monopolizing the right to talk about
this. We are giving a qualification of the events that took place in Ukraine
and resulted in millions of victims in order that this might not be repeated
in the history of mankind.

Our Holodomor to some degree has a specific character, since no one knew
about it for centuries. But there existed a criminal regime that committed
this genocide, and, of course, hid the evidence, as is the case in other
well-known instances.

[The Day] – How has the understanding of this problem changed in the world?
As you know, in one of the commentaries the Ministry noted that ten
countries recognized the fact of the Holodomor in Ukraine.

[Amb. Slipchenko]- Above all, we have to understand for ourselves what
happened to us. Perhaps this is the greatest task. >From my own experience I
can say that people abroad always ask, “How do you understand these events?
What official documents do you have to support this?”

Therefore it is absolutely natural that this year the President of Ukraine
submitted a new draft bill to the Verkhovna Rada in which it is proposed to
the people’s deputies that the 1932-1933 Holodomor be legally and officially
recognized as genocide with all of the political-legal and moral
consequences that follow from this.

There are some speculations or commentaries that push the issue of
compensation or punishment. But mainly we have to ask ourselves this
question and clarify what happened with us, how to interpret this tragedy,
who were its “destructive powers” and perpetrators.

To this day it’s still not clear what the overall number of victims is from
this tragedy; there are only estimates that vary widely. But these aren’t
some statistical units-they were real people whom they suddenly decided to
condemn to death. And they executed this design.there were plans, orders,
executioners.

Not long ago the Security Service of Ukraine made public about five thousand
documents from this time period. By the way, they will be on display in the
Ukrainian House under the observance of the Day of Memory of the Victims
of the Holodomors and Political Repressions.

All of these needs to be researched, entered into scholarly circulation, and
brought to the public’s attention. I would like to take this opportunity to
thank the newspapers Day for paying so much attention to this topic and for
printing interesting materials that help us.

Some of these articles that have been published on the pages of Day have
been distributed to embassies with recommendations on how to use them,
along with other materials, as a base of methodology and evidence.

Furthermore, it is even more beneficial that we in general feel the lack of
documental and illustrative materials that would visually depict to the
international audience the horrors that Ukraine endured and other culprits.
Some things we are commissioning ourselves, but the efforts of the MFA
alone are insufficient.

The signing of an Act on the allocation of a plot of land in Washington to
the government of Ukraine for the construction of a memorial to the victims
of the Holodomor became a significant example of the substance of our work
abroad.

Our embassy, who together with Ukrainian Diaspora organizations carried out
extensive work with members of the House of Representatives and Senators
gave rise to this. Our Ambassador spoke at special hearings in Congress.

The preparation of this decision that required separate resolutions from
both legislative chambers took nearly two years. Now we all have perhaps no
less work to do in holding a competition to ensure that the monument is
worthy of Ukraine and the memory of the victims. We also need to raise
funds.

Even though this plot of land is allocated to the government, who will play
a major role, additionally much depends upon the Ukrainian community in the
US and here in order to unveil this monument in conjunction with the 75th
anniversaries of the Holodomor.

I would also like to announce that with the aid of our Consulate General in
New York in the past few days a portion of the archives and library of a
well-known researcher of the Holodomor, James Mace, that remained till now
in the US were delivered to Kyiv. Now these valuable materials are being
added to the Mace Collection in the Kyiv-Mohyla Academy.

[The Day] – By what means did you manage to get some countries to recognize
the Holodomor as genocide?

[Amb. Slipchenko] – There is continual work of persistence and clarification
behind this. Even in 1993 on the occasion of the 60th anniversary of the
Holodomor Estonia’s Parliament first issued a corresponding statement that
completely coincides with our understanding of these events.

It took another 10 years for the parliaments of Austria, USA, Canada,
Hungary and a few other countries to issue similar statements. Literally at
the end of last year and the beginning of this year the parliaments of three
other countries-Lithuania, Georgia and Poland-also added their statements.

This was not easy. The work of our foreign institutions and initiatives of
the Ukrainian community abroad with whom they act in close contact are
behind this. And this work continues.

I have a lot of reports from our embassies where they inform about these and
other initiatives, discussions with parliamentarians, notes for the Ministry
of Foreign Affairs. Of course, this works yields its own fruits. But this is
not an overnight matter. I can give the example of the French side’s
reaction.

This illustrates word-for-word the difficulties we have to overcome in
achieving international recognition of the Holodomor as genocide.

So, the Minister of Foreign Affairs P. Douste-Blazi declared that “.under
the circumstance of a lack of consensus on this issue among historians and
lawyers the French government at present does not intend to comment on the
political or legal grounds for recognizing the Great Famine as an act of
genocide.”

[The Day] – In the process the French clearly stated their thoughts
regarding the Armenian genocide.

[Amb. Slipchenko] – This is true. But in Armenia they have passed laws. Do
you know when? They included an article in their Declaration of Independence
back in 1990 that states that this genocide is a part of Armenia’s history.
There are no other interpretations there.

But in a general tally, the Armenians haven’t gotten many more official
recognitions. However, this is a phenomenon of a completely different order,
such as the Holocaust, the denial of which in Israel is considered a
criminal act.  But there are certain parallels that we can draw here.

By the way, sometimes they tell us abroad that in principle they do not have
a tradition of issuing statements regarding historical events in other
countries. In some of the European countries they lean more towards waiting
for issuance of a general opinion by the EU Parliament.  That is why our
representatives in Brussels and Strausburg are working with the EU
Parliament and other European institutions.

But the MFA and embassies have limited influence on parliamentary
structures, and that is why the measurement of this work must first, of
course, rely on the active inclusion of our parliamentary delegations, like
this was done, say January 25, 2006 during the first session of the
Parliamentary Assembly of the Council of Europe during the discussion of the
question of “The Necessity of International Condemnation of Criminals of
Totalitarian Communist Regimes.”

The Ukrainian delegation turned PACE’s attention to the tragedy of the
1932-1933 Holodomor and urged members of the Assembly to recognize it as
genocide of the Ukrainian people and entered the corresponding amendment to
the draft bill of general recommendations.

Notwithstanding the fact that the draft bill of recommendations was not
confirmed by the Assembly in its entirety (since during the voting
two-thirds of the needed votes were not obtained), the support for the noted
amendment of the majority of the parliamentarians who took part in the
voting lends the basis to broach this subject again in PACE. This creates a
certain precedent even for other organizations.

In general we have many activities in which parliamentarians take part.
Namely, in Germany, Israel, Ireland and Pakistan our embassies have planned
to carry out thematic evenings on the Day of Memory with local deputies
taking part.

The Embassy of Ukraine in the Russian Federation has proposed to initiate an
examination of the matter of recognizing the Holodomor within the framework
of  inter-parliamentary cooperation of the Verkhovna Rada and the Federal
Assembly of the Russian Federation.

[The Day] –  Will there be a sound atmosphere in the UN before the 75th
anniversary of the Ukrainian tragedy in order to support Ukraine and
recognize the Holodomor as genocide of the Ukrainian people?

[Amb. Slipchenko] – You know, the resolution on the Holocaust, despite the
tremendous diplomatic work that was carried out during the post-ward years,
was passed by the General Assembly only in 2005. We will hope that we can
cover this ground faster, but of course, getting nearly 200 countries to
agree on a single text of a similar resolution will not be so easy.

As we see, there are certain varying views even throughout the NIS. It would
be natural if the former republics that all suffered from the harshness and
self-will of that regime demonstrated unity at least in the framework of
evaluating this phenomenon. We will hope that this comes to pass.

Moreover, there is a good opportunity for this-60 years from the day of
ratification of the UN’s Convention on Genocide that will occur in 2008; in
other words, it practically coincides with the 75th anniversaries of the
Holodomor.

[The Day] – Can the subject of the Holodomor’s recognition be broached in
the UN’s Commission on Human Rights, to which Ukraine belongs?

[Amb. Slipchenko]-  Right now the law enforcement bodies of the UN have
undergone a certain structural reorganization, and we were inducted into the
new Council on Human Rights.

I am absolutely certain that this matter also will be discussed there. We do
this everywhere, where an opportunity presents itself and where there is
appropriate context to do so.

Of course, in the Worldwide Meteorological Society it is unlikely that we
will raise this question. But in international bodies that deal with human
rights or other aspects of trying totalitarian regimes-of course.

[The Day] – What role can the Verkhovna Rada play in recognizing the
Holodomor as genocide? And why hasn’t it done this before?

[Amb. Slipchenko] As I already said, the Ministry of Foreign Affairs more
than once has drawn attention to the fact that the appearance of such an act
on the part of our Verkhovna Rada would give a serious stimulating push
towards obtaining similar documents from political and law-making officials
of other countries.

So, you have to understand that a step in recognizing the Holodomor as
genocide of the Ukrainian people is possible only after the respective bill
is passed. Of course, this will provide a major impetus.

But even without this it is happening. Specifically, in 2003 the Verkhovna
Rada passed a resolution that classified the Holodomor as genocide, but

this was a resolution passed as the result of hearings.

Meanwhile in the President’s draft bill sent to the Verkhovna Rada for
review-specifically in its recommendations-international experience to a
certain degree already was employed.

Our Ministry was also involved in developing and discussing this bill. For
example, as in Armenia or Israel, here it follows that the very fact of an
intentional Holodomor is beyond doubt.

Furthermore, it is declared a criminal act. I think that this is a very
serious internal statement. Such an official and legal qualification of the
Holodomor as genocide is given foremost.

[The Day] – Does the Ministry have a strategy or plan as to what to do next
after the Holodomor is recognized by the Verkhovna Rada and UN? What

will happen next? Will scores be settled with Russia?

[Amb. Slipchenko] – Exposing the true motives and facts of one of the most
pernicious crimes of the Stalinist regime is not intended to be a global
examination of our history or a putting forth of demands of a material or
legal nature.

The position of our government lies in a desire to give that which is due to
the innocent victims of those days and to prevent similar tragedies in the
future, and not in seeking revenge.                      -30-

————————————————————————————————
FOOTNOTE:  This article was translated from Ukrainian to English for
the Action Ukraine Report (AUR) by Heather Fernuik.  The translation
cannot be used without specific permission from the AUR. We have
worked with Ambassador Slipchenko for the past six month regarding
the Holodomor.  The AUR congratulates him for his excellent work.
————————————————————————————————
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========================================================
13. HUMAN TRAGEDY NEEDS TO BE HONOURED, NOT EXPLOITED

FROM THE EDITOR: Peter Dickinson
What’s On magazine, No. 43/2006, Kyiv, Ukraine, 24-30 Nov 2006

The Ukrainian parliament bravely voted last week to postpone the vote
on whether to recognise the terror famine of the 1930s as an act of
genocide against the Ukrainian people.

Yet again the country’s legislators approached a subject that lies at the
heart of Ukraine’s struggle with its troubled past, peered over the rim
into the gaping abyss, and promptly ran away.

It is easy enough to understand why: attitudes to the famine, like those
relating to WWII, ties with Russia and the Soviet past in general are
symptomatic of the utter lack of consensus as to what being Ukrainian
should be all about.

At one end of the spectrum you have the nationalists who believe the
famine was designed to destroy Ukraine as a nation, and at the other
you have the hard-line communists who refuse to admit that it was
anything other than a ghastly natural disaster.

The reality, namely that as the Soviet Union’s agricultural stronghold
Ukraine was doomed to suffer the brunt of the savagery as Stalin set
about collectivising agriculture and breaking the resistance of the
peasantry, gets lost amid a screaming match of accusation and denial.

It is a great credit to the country that Ukraine is now finally honouring
the millions of victims in something like a fitting manner, but it is tragic
in its own way that rather than offering some form of closure the subject
of the famine continues to divide contemporary Ukraine.

Ultimately I’d have question whether the slow, brutal murder of so many
millions really needs to be bestowed with the increasingly politicised
epithet of ‘genocide’ to render it the place in the world’s collective
consciousness that the famine so clearly warrants.

Calling it genocide simply give an ethnic slant to this manmade
monstrosity that is both historically dubious and socially divisive.

It is perhaps a sign of the times that there should be a push for such
keywords, but the human tragedy of the 1930s needs to be honoured,
not exploited.                                    -30-
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14.    UKRAINIAN PEOPLE’S PARTY CALLS ON PRESIDENT TO

           DISMISS RADA FOR SUSPENSION OF DECLARATION
                          OF 1932-1933 FAMINE AS GENOCIDE 
 
Ukrainian News Agency, Kyiv, Ukraine, Thu, November 23, 2006
 
KYIV – The Ukrainian People’s Party calls on President Viktor Yuschenko
to dismiss the Verkhovna Rada for suspension of declaration of 1932-1933
famine as genocide. Party’s press service has disclosed this to Ukrainian
News.

The party says that the suspension of the issue consideration by the
parliament is betrayal of Ukrainian people and refusal to fulfill a moral
duty.

‘Current members of the Ukrainian parliament are not representatives of
Ukrainian nation, in this they have no moral right to continue their work,’
the party report reads.

The party says that on November 17, the presidential bill ‘On 1932-1933
famine in Ukraine’ was not even put on the agenda of the Verkhovna Rada.

According to the party, the anti-crisis coalition was frightened by bill’s
articles foreseeing acknowledgement of the famine as genocide and public
denial from famine as desecration over the memory of millions of victims.

The party voices its concern that there is none of deputies, who would back
renewal of historical fairness.

‘The Communist Party, Party of Regions and Socialist Party have openly
accepted Moscow’s position, which denies the fact of genocide of Ukrainians
and Yulia Tymoshenko Bloc and Our Ukraine factions were afraid to
counteract,’ the report reads.

The Ukrainian People’s Party also said that on November 25, Ukraine would
mark the Day in memory of famine and political repressions victims.

As Ukrainian News earlier reported, Party of Regions deputies Vladyslav
Zabarskyi, Vadym Kolesnichenko and Orest Muts suggest that the

Verkhovna Rada acknowledge 1932-1933 famine as genocide.

In early November, Yuschenko submitted the relevant bill ‘On 1932-1933
famine in Ukraine,’ to the Verkhovna Rada.

According to different estimations, in 1992-1933, about 3-7 million people
died due to the famine in Ukraine. Parliaments of 10 countries have
acknowledged 1932-1933 famine as a genocide against Ukrainians. -30-

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15. RECOGNITION OF FAMINE AS GENOCIDE AGAINST UKRAINIAN
           NATION MEANS NO COMPENSATION BUT WILL ENABLE
                  UKRAINIAN NATION TO LEARN THEIR HISTORY,
                   ACADEMICIAN IHOR YUKHNOVSKYI BELIEVES

Ukrinform, Kyiv, Ukraine, Friday, November 24, 2006

KYIV – Recognition of the 1932 to 1933 famine as a genocide against the
Ukrainian nation won’t lead to demanding compensation, but will enable the
Ukrainian nation to learn their history, Chief of the Ukrainian Institute of
National Memory, academician of the National Academy of Sciences Ihor
Yukhnovskyi told Ukrinform.

Ihor Yukhnovskyi noted that the Ukrainian Institute of National Memory was
engaged in drafting a bill “On Recognition of the 1932 to 1933 Famine as a
Genocide Against the Ukrainian Nation”, represented by President Viktor
Yushchenko.

Speaking about the second bill, submitted by the Regions Party, Ihor
Yukhnovskyi stressed that it can’t replace the President’s one, as it denies
recognition of the famine as the genocide against the Ukrainian nation and
doesn’t envisage punishment of those, who will object to the fact. In case,
this will be omitted, the bill is of no sense.                   -30-

———————————————————————————————–
FOOTNOTE: Jurij Klufas, Toronto, Canada and I had a long meeting
with Ihor Yukhnovskyi in Kyiv this week.  The Institute of National
Memory is in very capable hands with academician Yukhnovskyi. We
urged the Institute’s director to appoint a special international
committee of experts to review all the photographs of victims that have
been used since 1934 to show the Holodomor in Ukraine to determine
once and for all which ones were actually taken in Ukraine during 1932-
1933. The widespread use of photographs taken in Russia during the
1921-22 famine to show the Ukrainian Holodomor of 1932-33 needs
to stop. The use of the Russian photographs can especially be found
in Ukraine, Canada and the United States. AUR EDITOR Morgan Williams
———————————————————————————————–
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16. “SO-CALLED” HOLODOMOR, CONSEQUENCES FOR UKRAINE

Oleksandr Kramarenko, Luhansk
The Day Weekly Digest in English, #37
Kyiv, Ukraine, Tuesday, 21 November 2006

Russia’s Ministry of Foreign Affairs sees no grounds for recognizing the
Holodomor of 1932-1933 in Ukraine as an act of genocide on an ethnic

basis, reads the statement issued by the ministry’s press and information
department ” in connection with the discussion of the so-called Holodomor
of 1932-1933 by the Ukrainian press.”

“The Ukrainian press continues to discuss the ‘Holodomor’ of 1932-1933,
often drawing on the thesis that the famine during this period was not only
specially provoked by the Soviet leadership, but aimed exclusively against
the Ukrainian people,” www.pravda.com.ua reports.

“Available archival materials attest to the fact that the mass famine in the
early 1930s was indeed in many respects caused by the policy of the then
leadership of the Soviet Union. However, it is clearly apparent that it was
waged not on national grounds.”

Well, there is nothing surprising about these statements. The Russian
Federation has expressed its stand on the question of the “so- called”
Holodomor on more than one occasion.

Why should any of this be surprising when our own Ukrainian political elite
has not grasped the actuality of the consequences of the 1932-1933
Holodomor for the Ukrainian nation, let alone the need to overcome them
as soon as possible.

This is one of the signs that this elite is by no means a national one. This
fact, in turn, causes disgust toward it on the part of growing numbers of
people from various social strata in Ukraine.

Among my acquaintances is a man who was legally separated from his
parents (today they would be qualified as “asocial”) and institutionalized.

Eventually, he obtained an education and mastered a prestigious profession
that allows him to live comfortably. Despite all this, I still feel ill at
ease sharing a table with him. He eats so fast and so much that people
cannot help averting their eyes.

As I later learned, as a three-year-old boy he was left alone for days
without food while his mother was out getting drunk. When she was sober,
she would repent by giving her son the best food money could buy.

The boy was not dying of starvation, but those periods of hunger were enough
to awaken an animal instinct that could not be overcome either by the strict
discipline in government-run institutions or even by his current state of
well-being.

In the early 1930s children of Ukrainian peasants did not see food for
months on end; their bodies swelled from hunger and they died before their
parents’ eyes. One can only try to imagine what horrible metamorphoses took
place in those who were destined to survive the living hell of the
Holodomor.

This is what Hryhorii Bevz, a man who lived through the Holodomor in a
Ukrainian village, has to say: “A starving person’s psyche alters
simultaneously with the physiological changes. Profound and prolonged
hunger deadens or totally destroys normal human feelings and emotions.

“A starving person develops a different attitude to good and evil, truth and
falsehood, justice and injustice. To such a person universal human values
are of secondary importance, not worthy of his attention. Above all the
person wants to eat. Feelings of patriotism, faith, friendship, and love are
extinguished or are never born.”

Indeed, what patriotism could there be at a time when acts of cannibalism
were taking place in almost every village in Ukraine during the Holodomor,
when mothers ate their own children?

According to the noted British scholar Robert Conquest, 325 Ukrainians were
serving a life sentence for this type of crime in the prison camps of the
White Sea – Baltic Canal in the late 1930s.

However, a life sentence was seldom handed down for cannibalism in the USSR;
more often than not the guilty parties were shot. Therefore, it is possible
to assume that there were dozens more cases of cannibalism in Ukraine during
the Holodomor.

This is how Bevz characterizes the famine as a weapon of genocide: “People
have invented a number of various means of mass destruction: mechanical,
chemical, biological, and radiation.

Famine is one such means, the cheapest and most effective. Famine can also
be used not only to physically destroy but also re-educate people, change
their aspirations and objectives, feelings and moods. This is very important
for the creators of a new society.”

These are not scholarly conclusions or assumptions made by political
scientists; these are the recollections of a man who experienced everything
that he recounts.

One can only envy the willpower of Bevz, who, after experiencing the hell of
the Holodomor, was able to overcome in himself all its destructive
consequences and look at himself dispassionately. Yet the sad fact remains
that the absolute majority of Ukrainian peasants failed to do so.

The satanic re-education of Ukrainians by the Stalinist regime did take
place. The distinguished Holodomor researcher James Mace reached the
conclusion that people’s ethics and morals, as an important element of
cultural life, suffered a devastating blow.

In the conditions of the mass destruction of the Ukrainian people, such
age-old features as friendliness, helpfulness, politeness, and empathy
receded into the past. Instead, indifference and cruelty reigned supreme.

If we take a closer look at our current milieu, we must agree with this
noted US scholar. The pathological desire of Ukrainians to climb to the top
of the hierarchical ladder by hook or by crook is indirect proof that those
who survived the Holodomor were raised that way (and, of course, they also
raised their children and grandchildren this way) by the criminal regime
that was by no means starving in 1933.

It is safe to assume that there is nothing coincidental about the fact that
our three last presidents came precisely from the postgenocidal countryside.
You will agree that Kravchuk, Kuchma, and Yushchenko were different people
before and after the elections.

Those who believe that the Holodomor cannot have such long- lasting
aftereffects on our public life are wrong.

They ought to be reminded of what the prominent Ukrainian intellectual Ivan
Dziuba said: “Of course, the millions of victims of the Holodomor mean not
only horrible sufferings sustained by each and every one of these millions,
not only a horrible blow to the vital force of the nation but also a blow to
its future. This means the destruction of its cultural essence; it is the
vanished Atlantis of the traditional Ukrainian village.”

Indeed, where can you find our traditional homespun embroidered shirts and
towels? Where can you hear our folk songs that are known all over the world?
All this is preserved only in the countryside in western Ukraine,
territories that were fortunate enough to be spared the Holodomor and its
terrible consequences.

The Bolshevik genocide dealt a devastating blow to Ukrainian national
consciousness. According to Conquest, the same people who, with weapons in
hand, resisted Russian communist chauvinism during the Civil War, who
rebelled against forcible Russification in the Kuban region in late 1932,
volunteered to register themselves as Russians during the 1939 census.

There is information about the fact that Ukrainian-speaking peasants
everywhere changed their nationality this way, much to the delight of the
local authorities.

It is common knowledge that the most heinous consequences of the Holodomor
were observed in the steppe and forest-steppe regions of Ukraine, which were
not sources of food – in Donetsk, Luhansk, Kharkiv, Kherson, Mykolaiv,
Poltava, Cherkasy, Odesa, Zaporizhia, and Dnipropetrovsk oblasts, as well as
in the Crimea and the Moldavian Autonomous Republic (today: Transdnistria).

Therefore, it is no surprise that the residents of these territories are the
most active supporters of pro-Russian political forces in Ukraine. During
the last referendum in Transdnistria local Ukrainians proclaimed their
desire to become citizens of Russia.

This is precisely what the ideologues and architects of the Holodomor were
after. Valentyn Bokovsky, a noted researcher of the Ukrainian genocide,
points out: “That was why it was decided to prepare a fundamental action
aimed at destroying the Ukrainian national movement in Ukraine, so that
there would be no possibility of reviving it in the future.

To do so, the assault by famine had to be directed at the Ukrainian
peasantry as the source of the people’s national strength; it was carried
out so carefully that nothing was noticeable.”

An opportune occasion was chosen for launching this action: the start of the
new agricultural system, collectivization. Under the guise of this economic
experiment Moscow fulfilled its murderous plans, explaining the victims by
“the hardships of collectivization.”

Of course, the peasants realized that the Bolsheviks were starving them to
death precisely because they were Ukrainians, so the fear of preserving
their national mentality entered their genes and mentality. Since the
communists suffered no punishment for that genocide but only strengthened
their rule, this fear was handed down to the succeeding generations.

Today it is felt in the Russified mentality of many Ukrainians. Hence the
mental split in our nation, which is not from its long history, as we are
told time and again by the political advocates of the Bolshevik genocide.
The fact remains that 75 years ago the level of national consciousness among
the Kuban Cossacks was as high as that of the Galicians.

Instead of Christian virtues, totally different “moral values” were
instilled in the Holodomor-mutilated minds of Ukrainians, which were brought
by those very ethnoses that tortured our villages in the early 1930s: “If
you don’t get caught, you’re not a thief”; “If you want to live, you’ve got
to be smart”; “The only way to get somewhere is by greasing palms”; “Might
makes right”). Today these guidelines are supplemented by another one: “Life
according to the rules of the underworld.”

This is why one should not be surprised by the fact that these carriers of
latter-day “values” cast their ballots for politicians who are like them,
and they do so sincerely and consciously.

Herein lie the essential distinctions between the Holodomor and the
Holocaust, which the Nazis directed only at the physical destruction of the
Jewish nation. The Bolshevik genocide against the Ukrainians was also an act
of ethnocide, meant to destroy systemic ties within the ethnos and, as
Holodomor researchers point out, to spur its representatives to acquire a
different ethnic quality.

Thus, the state of Israel has totally different problems compared to the
Ukrainian state, which can hardly even be called “Ukrainian” because ethnic
self- identity has been destroyed in the greater part of the titular nation;
there is no historical memory or even the need to communicate in the native
language.

This situation allows representatives of other ethnoses to dominate Ukraine.
Nor is there anything coincidental about them standing shoulder to shoulder
with Russified Ukrainians in the front ranks of those campaigning against
recognizing the Holodomor as an act of genocide.

Naturally, this situation in Ukraine, given the conditions of a
quasi-democracy, produces a non-Ukrainian government so aptly described by
Kharkiv’s human rights champion Vasyl Ovsiienko:

“That same Soviet nomenklatura, comprising for the most part of individuals
who do not even remotely understand the national interests of the titular
Ukrainian nation and who at times are openly hostile to Ukraine, is still in
power in our country. It is not a national but territorial ruling stratum
that is not a carrier of national values and has no clear-cut state-building
guidelines.

“Even though most of them are of Ukrainian descent, they are reliably
Russified and psychologically oriented toward Russian culture, and
politically – toward the Kremlin stars.

“It would be naive to expect people who have problems with their national
identity to set about implementing the national idea. Each of them has his
nationality and the most important idea is to grab as much as possible from
Ukraine, drag a juicy piece as far away as possible in order to devour it.
But such an idea does not unite but disunite. It is destructive for Ukraine.

“If Ukraine had a truly Ukrainian government, would it have ever destroyed
its own people so mercilessly? The time has come to call a spade a spade;
otherwise we will never leave Russian captivity.”

Unfortunately, it is the Russified intelligentsia that is calling a spade a
spade for the vast social strata in southeastern Ukraine, and this only
serves to deepen the mental rift in our country. This process could be
stopped only by a presidential republic headed by a true patriot.

It was not for nothing that our “Europeans” Moroz and Symonenko exerted
inhuman efforts to prevent this by implementing their so-called
constitutional reform.

This allows the pro-Russian forces to build their own Ukraine that Ovsiienko
describes as follows: “Thus Russia No. 2, Little Russia, is being created on
the territory of Ukraine, which at any moment can be ‘canceled as no longer
needed’, to quote Saltykov-Shchedrin.”

For doubting readers, here is just one example. Under the Soviets Russian
obscenities could be heard in high schools in the Donbas only during
fistfights among senior students. Today the schools of Luhansk oblast are
raising an “obscenity-spewing population” for which, beginning in the third
or fourth grade those dubious links with the “great and mighty” Russian
language has become a daily necessity.

The hopes of those who expect that our young people will build a European
Ukraine within several decades are futile, if not harmful. They will not
build it because they are being raised outside any national ideology,
without national heroes. Whatever language they speak, their life’s
guidelines lead to a very dubious idol, the “golden calf.”

That is why the following political forecast by the noted Ukrainian
historian Stanislav Kulchytsky is entirely realistic: “The main conclusion
stemming from the comparison of national-spatial self-identification and the
linguistic one is rather disheartening: Ukrainian society is in the initial
phase of forming a political nation.

In the event of unfavorable socioeconomic processes, an increasing number

of Ukrainian nationals will gravitate to Russia, with tragic consequences for
national statehood.” This is what should have given a headache to the
leaders of Ukraine’s National Security and Defense Council if it were really
pro- Ukrainian.

Why be surprised at seeing representatives of other nations with no national
self-identification problems dominating Ukraine?

These people have the biggest capital in Ukraine, and their culture and
education are predominant in our country. They own newspapers with the
largest circulation and popular television channels where the Ukrainian
language has Cinderella status.

Finally, the largest church in Ukraine is also non-Ukrainian. Russified
Ukrainians pray in its temples for a foreign government and president, for
the victory of a foreign army (also for a victory over the Ukrainian army,
if need be).

Of course, these ruling non-Ukrainians are doing their utmost to maintain
this situation, shameful as it is for the titular nation of this country,
for as long as absolutely possible, if not forever.

That is why the Holodomor topic is a reliable taboo in their media or is
denied outright, as was the case in Soviet times. Unlike the modern
so-called Ukrainian national elite, they know only too well the meaning of
returning historical memory to a nation that has lost it.

Russian political scientist Sergei Kara-Murza notes in this connection: “In
times of social crises historical memory is destroyed as a purposeful
program of political forces. A man who remembers nothing from the history

of his people, country, and family falls out of this social environment and
becomes totally exposed to manipulations.

“A man without memory faces the need to re-establish his place in the world;
a man without the historical experience of his own nation or others finds
himself outside the historical perspective and is capable of living only on
a day-to-day basis.”

There are many individuals of this type in the totally denationalized
southeastern regions of Ukraine, where their historical amnesia is being
carefully maintained by the local authorities and media.

This is what Academician Ivan Dziuba has to say about such media: “A

large part of the mass media is working to lower the moral level of their
audiences and simplify their needs and tastes.

“They are shamelessly parasitizing on national immaturity, the deep-reaching
Russification of this society; they are conducting a frenzied campaign aimed
at discrediting Ukrainian culture and the Ukrainian spirit in general.

“This already includes brazen falsifications of Ukrainian classics and
profanation of beloved Ukrainian names to the deafening accompaniment of
hypocritical rhetoric about freedom of expression and human rights that have
nothing to do with such public filth. Reading such newspapers, the feeling
is that you live in an occupied Ukraine and that the occupier is becoming
more savage every day.”

Dziuba believes that this situation is threatening “the very existence of
the Ukrainian nation as an equal of the world’s nations.” A nation
disappearing from the face of the earth is none other than the successful
outcome of a genocidal campaign. Those who pedal the theme of inferiority
of all things Ukrainian in our country should know as much.

But this does not seem to be troubling these Ukrainophobes. As the
descendants of the architects and executors of the Holodomors in Ukraine,
they are in no hurry to repent and redeem their parents’ faults. Instead,
they bluntly refute the very fact of the Bolshevik genocide against the
Ukrainians.

Of course, our “elder brother” is doing everything possible to prevent the
return of historical memory to Ukrainians traumatized by the Holodomor –
ever. Using the media under their control, Russians are imposing on us their
interpretation of history, their holidays, their heroes, and their
lifestyle.

Lately, instead of the Soviet version of our history a “Single Economic
Space” version has appeared on Russian and domestic oligarchical channels,
which seemingly refutes the previous one, but at the same time never goes
beyond great power ideology. None of our intellectual patriots has duly
responded to this ideological subversion.

The non-Ukrainian government is apparently shutting its eyes to all these
antinational acts. As a result, Ukraine remains an exceptional country on
the world’s political map, and the only explanation of this depressing
exceptionality is perhaps that, unlike all other countries, Ukraine is still
reeling from the consequences of the genocide against the titular nation, as
a result of which we have today a postgenocidal society that largely
explains all our outwardly inexplicable hardships and paradoxes.

Among the genetically mutilated Ukrainian intelligentsia no one has been
found who could offer us scholarly substantiation of what is actually
happening to our society. This task was undertaken by James Mace, who
introduced the concept of a “postgenocidal society” into scholarly
circulation.

This is how he describes the overall situation in Ukraine: “In reality it
took considerable sluggishness, incompetence, and undisguised fraud to turn
a country with the world’s most fertile soils, great mineral resources, and
a workforce that was better educated than in the US into a laughingstock.

The economy cannot sustain such a large government and it has far more
authority than necessary, so business entities either hide in the shadows or
are crushed. The state is plunging increasingly deeper into debt and is
eating up loans that should be used as investments. The state of the
environment is the worst in Europe. The population is shrinking; people are
losing their faith in a better future, etc.”

What can one say? This is a classic of sociology, despite the fact that Mace
died almost three years ago.

This objective and extremely scrupulous scholar saw a military threat to
Ukraine only on the part of Russia, which issued the infamous resolution of
the State Duma on Sevastopol.

But mostly he wrote that the claims to Ukraine are deeply rooted in Russian
political culture, and there is no denying the possibility that Russia will
produce its claims sooner or later and not just in words.

Moscow is increasing its economic pressure on Ukraine, politicians are
striking back with statements, and economists are surrendering their
positions one after another. And all this is happening to the accompaniment
of rhetoric about the fraternal ties between two nations. Apparently only
people who are brainwashed by the “elder brother” in Ukraine can believe in
such fraternity.

As for postgenocidal Ukraine’s prospects in connection with its so- called
bilingualism, Mace wrote that when the late Raphael Lemkin coined the term
“genocide” in 1944 he actually meant the forceful replacement of one
national model by another one. This is precisely what happened in Ukraine.

It will be a long time before our nation comprehends the real meaning of
this legacy and learns once again to be proud of itself and the things that
make it unique.

No one has anything against Russian culture and language, but so long as
Ukrainian remains a second-rate language in the eyes of Ukrainians this
nation will not be a united one.

This is indeed food for thought for those Ukrainian intellectuals who
enthusiastically support the idea of a bilingual Ukraine.

According to James Mace, this bilingualism is the source of Ukraine’s
multivectoral foreign policy, which will lead it into Russia’s embrace,
nowhere else. “The choice that Ukraine is still not capable of making is to
become European or Eurasian, consciously moving toward Europe or
sinking ever deeper into the post-Soviet environment.

“This choice will ultimately have to be made, despite all the idle prattle
about multiple vectors in the Ukrainian foreign policy. Let’s face it: the
force of gravity is slowly but surely pulling Ukraine into the Eurasian
orbit. It can reorient itself toward Europe only by using its political
will.

“The Commonwealth of Independent States may not be an effective
organization, but real politics in this part of the world is made not only
on an official level. In Ukraine an economic system has emerged, which is
practically similar to that in Russia and it depends on Russia’s energy
supplies.

“This means that Russia’s energy concerns will call their own an increasing
number of sectors of the Ukrainian economy on account of debts. This, in
turn, means that Russia’s leadership will exert an increasing degree of
influence on Ukraine’s. This integration is taking place in the shadows,
away from the public eye.”

I am sure that people who have preserved their Ukrainian mentality will have
no doubts that the above statement, made by the late American scholar, is
addressed to Yanukovych’s government.

But there are not enough of these kinds of people in postgenocidal Ukraine
to make this government stop functioning immediately, and so our state is
still headed for the Russian imperial harbor.

Needless to say, James Mace could not have overlooked the postgenocidal
Ukrainian countryside that suffered the most negative transformations in the
aftermath of the Holodomor. He regards the land reform in independent
Ukraine as adequate to Stalin’s agrarian policy.

“The peasants, who essentially were turned into slaves in accordance with
Stalin’s version of social justice, ended up with nothing. Now it seems that
they are being prepared for eviction from the land that has fed them and
their forefathers.” Is the author of these lines the only one in Ukraine
prepared to raise a clamor on the subject?

Unfortunately, Mr. Mace, you were the only one. Today’s ruling elite in
Ukraine, regardless of its colors, is bating its breath in anticipation of
the tasty morsels of our chornozem soils under cover of empty phraseology
about the social protection of farmers whom they are consistently turning
into roving beggars.

You will agree that it is difficult to refute Mace’s foresight with regard
to our postgenocidal society.

Unless the Ukrainian intelligentsia realizes all this, it will never produce
a true national elite that will have to make Herculean efforts and suffer
countless losses to prevent the cultural heirs of Stalin from enjoying the
fruits of his satanic tyranny against the Ukrainian people.    -30-
———————————————————————————————-
LINK: http://www.day.kiev.ua/172762/
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17. STATEMENT ON THE OCCASION OF THE COMMEMORATION
                 OF GREAT FAMINE-HOLODOMOR IN UKRAINE
                             Ukrainian Canadian Congress (UCC)

STATEMENT: by Ukrainian Canadian Congress
Winnipeg, Manitoba, Canada, Friday, November 24, 2006

For several years already, the last Saturday of November has been a day of
remembrance for the millions of Ukrainians killed by the artificially
1932-33 Great Famine-Holodomor in Ukraine.

On this day, Ukrainians, together will all mankind, honour the memory of our
brothers and sisters, who became innocent victims of the Stalinist
authoritarian regime.

Seventy four years ago, from April 1932 to November 1933 in approximately
500 days, some 7 to 10 million people, a third of who were children, died of
famine.

For the first time in human history, a government used the confiscation of a
harvest as a weapon for the destruction of the people. In 1932-33, Ukraine
last every fourth or fifth person.

The horrific truth is that mass murder for ethnic reasons can only be called
a genocide, the consequence of which was the destruction of the national
spirit of the Ukrainian people for ensuing decades.

In spite of attempts to bring the horrible truth of the Holodomor to public
attention, the world still knows little about this catastrophe for Ukraine.

Therefore, it is during these days that we, Ukrainian Canadians, once again
open the horrible pages of history and relate this to our children, friends
and neighbours and to all those who are not indifferent to the suffering of
others.

In the name of present and future generations, we will do everything
possible so that memory about the victims of the Famine will remain alive,
and that these horrific events never occur again.

With heavy hearts, the entire Ukrainian Canadian community remembers
those who suffered and died during the Great Famine-Holodomor by
holding memorial services and joint prayers or by honouring their memory
with a moment of silence or in some other appropriate manner.

May the memory of these innocents unite us, the living, and give us
strength to move forward to a better future.

Orysia Sushko
President, Ukrainian Canadian Congress
——————————————————————————————–
Contact: Ostap Skrypnyk, Executive Director, Ukrainian Canadian
Congress (UCC), ucc@ucc.ca; www.ucc.ca
———————————————————————————————–
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========================================================
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========================================================
18. GARETH JONES: THE MAN WHO KNEW TOO MUCH. HOW A

            WELSH JOURNALIST EXPOSED SOVIET UKRAINE’S
                 FAMINE-GENOCIDE AND MET A TRAGIC FATE
Marta D. Olynyk, Canada
Community Announcements (Toronto, Ottawa, and Montreal)
Canada, Thursday, November 23, 2006 
 
In commemoration of the Famine-Genocide in Soviet Ukraine, 1932-33.

International guest speaker: Nigel Linsan Colley, author and independent
researcher from the UK, and grand-nephew of acclaimed newspaper

journalist Gareth Jones.

Title of talk: Gareth Jones: The Man Who Knew Too Much. How a Welsh
journalist exposed Soviet Ukraine’s famine-genocide and met a tragic fate.

TORONTO: Monday, Nov. 27, 2006, 7:00 p.m. at the Ukrainian Canadian

Art Foundation, 2118-A Bloor St. West, Toronto

OTTAWA: Wednesday, Nov. 29, 2006, 7:30 p.m. at St. Paul’s University,

223 Main St., Ottawa, Amphitheatre, room 1124, Guigues Hall.

MONTREAL: Nigel Linsan Colley speaks on: The Gareth Jones Diaries,

Thursday, Nov. 30, 2006, 2:00 p.m., Faculty Club, McGill University,
3450 McTavish, Montreal, and Friday, Dec. 1, 2006, 7:00 p.m., St.
Sophia’s church hall, 6270 12th Avenue, Rosemount.          -30-
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19.  ALL AUSTRALIANS INVITED TO REMEMBER THE MILLIONS
          OF VICTIMS OF 1932-1933 GREAT FAMINE IN UKRAINE

Australian Federation of Ukrainian Organisations
Representing 24 Peak Ukrainian Organisations in Australia
Member of Ukrainian World Congress, Australia, Thu, 23 Nov, 2006

Published by Action Ukraine Report #793, Article 19
Kyiv, Ukraine, Saturday, November 25, 2006

 TIME FOR INHERITORS OF SOVIET SYSTEM TO ACKNOWLEDGE
                       THE FACTS AND SAY MEA CULPA

Over 7,000,000 victims who perished in the 1932-33 Great Famine in Ukraine
will be remembered in commemorative services throughout Australia, Ukraine
and in other parts of the world this weekend.

All Australians are called on to remember the victims and join with
Australia’s Ukrainian community in attending Remembrance Services in all
major and regional centres throughout Australia.

Australian’s can light a remembrance candle over this weekend 25-26
November 2006 in memory of those who suffered and died  as a result
this inhumane part of history.

The Australian Senate in 2003 recognized this inhumane act as an Act of
Genocide against the Ukrainian nation which was engineered by Stalin and
his regime and one that should never be allowed to be forgotten.

Australian Ukrainians are calling on the Government of Ukraine to reinforce
the 2003 Resolution of the Parliament of Ukraine condemning this atrocity

as an act of Genocide against the Ukrainian Nation.

President Yushchenko this week has introduced a Bill into the Parliament

to strengthen this position.

“This is no time for members of Ukraine’s Parliament to shirk their
responsibilities. Any additional aspects of a Bill should strengthen not
diminish the 2003 Parliamentary position Mr Stefan Romaniw OAM
Chairman of Australian Federation of Ukrainian Organizations (AFUO)
said today

“Collectivization, the forced seizure of grain, the absolute horrific acts
by the Stalinist regime should be judged internationally as atrocities
against mankind.’ Mr Romaniw said

“Ukraine’s Security Organization has now opened the archives and the
evidence in on the table. Ukraine must now demand the handing over of all
documents held within the Kremlin about that period.

Ukraine must now take this matter to the United Nations and call for an
International tribunal to condemn Stalin, his system and all who conspired
at the time to perpetrate this gross act against a Nation,” Mr Romaniw said.

Survivors of this period are still alive. Some live in Australia. Their
evidence must be collected. Melbourne based Tatiana Wolynec said she

often has graphic flashbacks of seeing her mother die of starvation before
her very eyes and Soviet officials forcibly removing not only grain, but
anything that could hold food.

The Ukrainian World Congress (UWC) has convened an International
Coordinating Committee to Plan and Coordinate the 75th Anniversary
(2007-2008) of the Great Famine, which is headed by AFUO Chairman
Stefan Romaniw.

“As we approach this weekend of commemorations in Australia our
communities internationally do likewise. ” Mr. Romaniw said.

Ukraine’s President and the Ukrainian Government must now show where they
stand. They must totally refute Russia’s  President Putin and his regime who
have so despicably demeaned this atrocity – continually attempting  to water
down this event in history” Mr. Romaniw said

“It was a planned Act of Genocide. The evidence is now on the table – Enough
of the political games with human lives. The President and Government of
Ukraine must be honest to the Ukrainian Nation and more importantly to those
who perished.” Mr. Romaniw said

In a recent meeting between Ukrainian officials and Russian Foreign Minister
Sergei Lavrova the Famine issue was raised with commentators reporting the
following Russian position –

“If the famine is recognized at the international level as genocide directed
against the Ukrainians, that would raise the question of Russia being the
Soviet Union’s successor state and its accountability for Soviet actions” –
which is certainly a cause of concern for Moscow.”

“The AFUO asks who was concerned about the millions that perished. Today
those painted with the same brush are concerned now about stopping the truth
being told. The fact is Stalin and the Soviet regime was responsible. There
is no hiding.

It is time to recognizing the facts and the words Mea Culpa need to called
out loud and clear by the inheritors of the inhumane Soviet regime,” Mr.
Romaniw said.
    SERVICES THROUGHOUT AUSTRALIA THIS WEEKEND
SATURDAY NOVEMBER 25, 2006 —–
SOUTH AUSTRALIA
Saturday November 25, 2006 – 1.00pm
Famine Memorial; St. Michael Orthodox Church,
427 Port Road,Croydon

SUNDAY NOVEMBER 26, 2006 ——–
BRISBANE: Ukrainian Catholic Church
36 Broadway St,Wooloongabba, 9.30am

Ukrainian Autocephalic Orthodox Church
60 Vallely St, Annerley, 9.00am

CANBERRA: Ukrainian Orthodox Church
McKay Gardens, Turner, 11.30am

MELBOURNE: Ukrainian Catholic Cathedral Sts Peter and Paul
35 Canning Street North Melbourne; Liturgy 9.30am, Requiem 10.30am

Ukrainian Orthodox Church
Buckley Street Essendon; Liturgy 10.00am, Requiem 11.30am

SYDNEY: St Andrew’s Ukrainian Catholic Church
57 Church Street, Lidcombe, 8.00AM and 10.00AM;

Ukrainian Autocephalic Orthodox Church of the Holy Intercession –
Cnr Arthur Street & Mitchell Road, Strathfield West, 9.00AM;

St Aphanasius Ukrainian Autocephalic Orthodox Church
William Street, Granville 9.00AM;

PERTH: 11:00 am Combined Requiem at the Millenium Cross
Ukrainian Catholic Church, 20 Ferguson St Maylands
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20.                    GOLODOMOR UCRANIA 1932-33
           Ass. dos Ucranianos em Portugal (SPILKA) – Homenagem

From: Mariya Dets, ucranianosemportugal@gmail.com
To: Morgan Williams, mwilliams@sigmableyzer.com
Sent: Wednesday, November 22, 2006

Published by Action Ukraine Report #793, Article 20
Kyiv, Ukraine, Saturday, November 25, 2006

Caros Amigos,

Nos proximos dias 25-26 de Novembro a comunidade Ucraniana do todo mundo
comemora o 74º aniversario do Golodomor – Fome artificialmente criada pelo
regime sovietico na Ucrânia em 1932-33, que ceifou a vida de cerca de 7
milhões de pessoas. Governos de 10 países do mundo já reconheceram a
natureza genocidaria deste acontecimento terrivel na historia do seculo XX.

Associação dos Ucranianos em Portugal (Spilka) , representante da comunidade
Ucraniana residente em Portugal  (cerca de 110 mil pessoas), junto com
Congresso Mundial dos Ucranianos (Ukrainian World Congress) e Congresso
Europeu dos Ucranianos (EKU), Embaixada da Ucrânia em Portugal, e Igreja
Greco-Católica Ucraniana convidamos a todos participar nos eventos de
Homenagem às vitimas de Golodomor, e apoiar o nosso apelo ao Governo e

Povo Português, para que a verdade sobre o Golodomor seja conhecida e sirva
de aviso às presentes e futuras gerações e para que nunca acontecem os actos
de genocídio e qualquer violencia contra a vida humana!

Toda a informação sobre os eventos de Homenagem está em documentos

anexados. A “Mensagem da Comunidade Ucraniana ao Povo Português” foi
entregue ao Governo Português pelo Ministro de Negócios Estrangeiros da
Ucrânia Senhor Boris Tarasyuk durante a sua visita oficial em Portugal no dia
17 de Novembro de 2006.

Para mais informações sobre o Golodomor na Ucrânia de 1932-33:

http://www.ucca.org/famine/
http://www.artukraine.com/famineart/index.htm
http://www.shevchenkoorg/famine/
http://www.infoukes.com/history/famine/
http://www.faminegenocide.com/
http://www.archives.gov.ua/Sections/Famine/index.php
http://www.represii.org/
http://ukraine33.free.fr/
http://pt.wikipedia.org/wiki/Holodomor
http://www.ukrainianworldcongress.org/Holodomor/index.html

Atenciosamente,
Pela Associação dos Ucranianos em Portugal (SPILKA)
Mariya Dets, Presidente.
———————————————————————————————–
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21. UKRAINE: THE FAMINE OF 1921-22: CONFISCATION OF CHURCH
           TREASURES; THE GREAT FAMINE OF 1932-33 “TORGSINS”

“A History of the Destruction and Preservation of Cultural Treasures”
By Serhii Bilokin, Doctor of Historical Sciences
Book: “Ukrainian Sculpture And Icons, A History of Their Rescue”
Exhibition Catalogue, Rodovid Press, Kyiv, Ukraine, 2006, Pgs 26-29.
Reprinted With Permission by the Action Ukraine Report (AUR)

#793, Article 22, Kyiv, Ukraine, Saturday, November 25, 2006

NOTE: The article “A History of the Destruction and Preservation of

Cultural Treasures” by Serhii Bilokin, Doctor of Historical Sciences, is
found in English in the book “Ukrainian Sculpture And Icons, A History
of Their Rescue” Exhibition Catalogue, Copyright Rodovid Press, Kyiv,
Ukraine, 2006, on pages 24-53.  The article is also found in Ukrainian.
 
The following text dealing with the famine of 1921-22 and the famine of
1932-33 is a portion of the larger text and is found on pages 26-29. The
text is reprinted by the AUR with the specific permission of Lidia Lykhach,
Publisher, Rodovid. [AUR EDITOR]

                    FAMINE OF 1921-22

CONFISCATION OF CHURCH TREASURES

The Lenin period, the real essence of which was the Red Terror, was
characterized by systematic and unremitting expropriations and vigorous
seizures of property. The confiscation of church treasures that took place
during the famine of 1921-22 belongs to this period in fullest measure.

Lenin’s famous letter of 10 February 1922 to Molotov and the members of

the Politburo contains no hint of the need to assist the starving population
with money earned from the sale of church valuables.

Its main theme is the extermination of “slave owners” and, as Lenin called
them, the reactionary clergy. The “leader’s” main concern was to take
advantage of the moment when it was possible to count on total victory over
the opponent.

However, a comparison will show that the idea in Lenin’s letter derives from
Machiavelli. (34)  Lenin’s letter was published for the first time in 1970
(abroad, naturally), (35) but the idea in it can be traced to earlier
publications.

The scholarly secretary of Munich’s Institute for the Study of the USSR,
Mykhailo Miller, defined the period in history of the confiscation of church
treasures in an article from 1957:

“During this first period, the destruction of churches and religious
monuments and their plunder were not of a planned nature but the spontaneous
assault of the lumpen proletariat and the plebs on higher social strata,
which included the clergy.

“Thus, the destruction and plunder of churches took place in parallel and
simultaneously with the destruction and plunder of private landowners’
estates.

“This period ended with the so-called ‘sequestration of church treasures’
from all churches, lavry (large monasteries under the direct jurisdiction of
the highest church body), and monasteries. This action, broad in scope,
represented the first Soviet planned pogrom of churches.” (36)

It is interesting to note that the awkward phrase “churches, lavry, and
monasteries” is a direct quote from Lenin’s letter, where this wording
appears twice. For several decades the historiography of the famine
developed, for obvious reasons, only in emigration.

The first work on the famine was written by Ivan Herasymovych (1876-1942),
a community leader and organizer of Ukrainian educators.

Until 1914 he worked in Bukovyna and headed the press bureau of the Supreme
Command of the Ukrainian Galician Army (UHA). During the years of the
Struggle for Independence, until the late fall of 1921, Herasymovych lived
in Ukraine.

From 1932 to 1939 he edited the Lviv journal Ridna shkola. In 1922 he
published a monograph in Berlin: Holod na Ukraini (Famine in Ukraine, 2nd
ed., Hoverlia, 1973). The work contains a short section on “Church Treasures
of Ukraine on the Famine Front” (pp. 211-12).

Ivan Vlasovsky found important things to say about the plunder of church
treasures in his monumental work, linking it to the question of cultural
heritage. He noted that “for the Ukrainian people this was the theft of its
national treasure, evidence of its centuries-long piety and national
culture.” (37)

On 26 April 1922 the Ukrainian humanists Ahantanhel Krymsky, Serhii
Iefremov, Fedir Shmit, and museologists Mykola Makarenko, Danylo
Shcherbakivsky, Fedir Ernst, and others sent the following request to the
Council of People’s Commissars of the URSR: “[.] we find that if the
program of the sequestration of material treasures is not implemented with
sufficient care, there exists the possibility of destroying very rare,
irreplaceable monuments of art, whose material value is insignificant
compared with their artistic value.

A work of art, once destroyed, can never be replaced. Obviously, the cross
of Bohdan Khmelnytsky, which was sequestered from the Museum of Religious
Cults and Folkways at the Kyivan Cave Monastery, or the royal doors that
were the gift of Hetman Ivan Mazepa, which were sequestered from the
Chernihiv Cathedral, cannot be created anew.

Obviously, the Byzantine bracelet, removed from the Chernihiv Museum, is a
thousand times more valuable than the silver from which it is made. To melt
down or sell these items abroad would be a grave crime against the people,
leaving a black stain on the names of those who allowed this to happen.

“We ask the Council of People’s Commissars of Ukraine to take into account
this aspect of the sequestrations and ask that the artistic treasures
confiscated from museums be returned to them.” (38)

The Ukrainian scholars received a reply to this letter the very next day.

Ad protocollum No. 36 of 18 May 1922
To the Council of the Church Community of the Kyivan Cave Monastery
REPORT
On the second sequestration of church treasures from the Cave Monastery’s
churches that took place on 27 April 1922:

At around noon on 27 April, the Cave Monastery was cordoned off from all
sides by Soviet troops, who did not allow anyone in or out of the gates
without a special permit from the commander of the guards.

Before long, the Commission for the Sequestration of Valuables, headed by
the deputy chief of the NKVD, Com. Serafimov, arrived at the monastery.

Upon his arrival, the latter announced that he had received an explicit
order from the authorities and had come to take the revetment (ryza) of the
Assumption icon, and would not enter into any negotiations about its
redemption.

He proposed to the Father Superior that he voluntarily remove the revetment,
adding that if he refused to do so, the Commission itself would remove it.
[.] The revetment was carefully removed from the old icon of the Assumption
of the Mother of God by the Commission’s jeweler [Khmelevsky].

The icon, covered with varnish, was placed back by the ecclesiarch of the
Cave Monastery into the metal ring in which it had been before and which was
left by the Commission in view of the fact that the jeweler had placed a low
value on it.

But for the diamond halo around the head of the Lord of Sabaoth on that ring
the Commission demanded a redemption payment of 17 carats of diamonds,
which were paid out from the voluntary donations of the faithful.

The artistically worked gold revetment, gleaming with the play of
multicolored precious stones, was valued by the Commission’s jeweler at
62,550 rubles (in gold).

In addition to the revetment, the grand candelabra (large, silver) from the
Cave Monastery’s Large Church [Church of the Assumption], weighing 10 1/2
poods, the silver plate from the altar of the Refectory [Trapezna] Church,
and the sepulcher containing part of the relics of the Holy Princess
Iulianna in the Church of the Annuciation, weighing 2 1/2 poods, were
removed. This and other silver was weighed.

Inasmuch as according to Com. Serafimov the number of poods of silver
planned by the Commission was short 8 poods, the Monastery had to provide
this amount.

When the members of the Council of the Church Community stated definitely
that there was no such silver, the Commission decided to take the revetments
from icons and the sepulchers from the Large Church; however, after some
negotiations, the Commission agreed to the redemption of the indicated
items – in gold or the diamonds donated to buy back the revetment of the
Assumption icon – a total equal to the value of 8 poods of silver, that is,
6,400 rubles (prewar), which were ordered to be submitted by 4 May to the
Gubernia Commission for the Sequestration of Valuables.

At 6 o’clock by the sun, taking with it the valuables sequestered from the
churches, the Commission departed. (39)

THE GREAT FAMINE OF 1932-33 “TORGSINS”

The confiscation of gold directly from the citizenry began around mid-1931
and continued through the famine. The initial stages of these confiscations
coincided with the abolition of the New Economic Policy, known by its
acronym NEP.

At the end of NEP, the campaign to confiscate gold from the new bourgeoisie
took on great scope. (40) The well-known Chekist, Aleksandr Osipovich

Bronevoi (Faktorovich: 30 May 1898, Odessa – 22 February 1940, OnegLag
[Onega labor camp]), (41) served from 18 April 1931 as deputy chief of the
Economic Directorate of the GPU (State Political Administration) of the
URSR.

The émigré writer, Dokiia Humenna, remembered him: “His specialty was to
‘extract’ gold from rich Jews.”(42) Another second-wave émigré, a former
Kyivite who published his narrative under a cryptonym, described the same,
but in greater detail: “I will conclude my description with a mention of
Com. Bronevoi, who headed the OGPU group of investigators in Kyiv

tasked with conducting the gold ‘mining’ campaign.

It was said of him that he had once belonged to the Zionist movement; after
being arrested together with other fellow members, in contrast to them, he
bought his freedom by betraying his convictions and agreeing to work in
OGPU organs.

Together with Fisher, Bruk, Sokolov, and other investigators, he headed the
investigation in the case of the Union for the Liberation of Ukraine [SVU]
and the Association of Ukrainian Youth [SUM].

Having distinguished himself in Kyiv, Bronevoi was transferred in 1933 to
Moscow, where he also worked in the ‘gold business.’ I heard that that same
year he tried to flee abroad with diamonds, but was caught and soon
liquidated.” (43)

The great famine yielded the Bolsheviks huge material profits. Planning for
this revenue, in the summer of 1930 they established the All-Union Office
for Trade with Foreigners (Torgsin) under the People’s Commissariat of
Foreign Trade.

An office opened in Kharkiv in August 1931, and by the beginning of January
1932, “Torgsin” stores were already operating in Odessa, Kyiv, Mariupil,
Kherson, Mykolaiv, Vinnytsia, Shepetivka, Zhytomyr, and Berdiansk – that is,
everywhere where famine soon raged.

Documents prepared by experts of the People’s Commissariat of the
Workers’-Peasants’ Inspectorate reveal the political and economic
justification of the entire “Torgsin” system, which stressed the
confiscation from the public of “everyday gold items, which after the
revolution lost their everyday significance as objects of adornment (rings,
earrings, bracelets, crosses, and so on) [.] but retained their value. [.]
this gold needs to be collected with the help of the ‘Torgsin’ system and

used to serve the interests of the proletarian state.” (44)

The “Torgsin” system was given specific plan targets for the confiscation
of gold from the population.

In the span of two years, the state took in: (45)
————————————————————————————
                                              1932
Name of metal                                   Revenues
                                In millions of karvobantsi   In metric tons
Gold (scrap, coins)              26.8                             21.0
Silver                                    0.3                             18.5
————————————————————————————–
                                              1933
Name of metal                                  Revenues
                               In millions of karvobantsi   In metric tons
Gold (scrap, coins)             58.0                              44.9
Silver                                  22.9                         1,420.5
————————————————————————————–
As Vasyl Marochko points out, “The peasants were not always able to
avail themselves of the bread they bought at the ‘Torgsins.’ Quite often
hey were arrested outside the stores by GPU officers.

The peasants who brought in gold coins to the collection centers were
arrested on the spot. The Chekists demanded lists of ‘gold deliverers’ with
their addresses and names. [.] it can be said that in 1932-1933 the
extortion of grain and gold from peasants took place simultaneously.” (46)
———————————————————————————————-
                                      FOOTNOTES:
34 Bilokin’, Masovyi terror iak zasib derzhavnoho upravlinnia v SRSR,
1917-1941 rr,: Dzhereloznavche doslidzhennia (Kyiv, 1999), p. 27.
35 “Neizdannoe pis’mo V. I. Lenina chlenam Politbiuro,” Vestnik Russkogo
studencheskogo khristianskogo dvizheniia (Paris-New York), vol. 98, [no.] 4
(1970), pp. 54-60.
36 Mykhailo Oleksandrovych Miller, “Znyshchennia Pravoslavno? Tserkvy
bol’shevykamy,” Ukrains’kyi zbirnyk (Munich), 1957, no. 10, pp. 42-43.
37 Ivan Fedorovych Vlasovs’kyi (1883-1969), Narys istorii Ukrains’koi
Pravoslavnoi Tserkvy, vol. 4, pt. 1 (New York, 1961), pp. 292-93.
38 Manuscript division of the M. T. Rylsky Institute of Fine Arts, Folklore,
and Ethnography of the National Academy of Sciences of Ukraine [Instytut
mystetstvoznavstva, fol’kloru ta etnohrafii im. M. T. Ryl’s’koho NAN
Ukrainy], F. 13-5 Ernst, Od. zb. 299, Ark. 10-zv. Full publication in
Bilokin’, “Vtraty ukrains’koi kul’turnoi spadshchyny pid chas holodu 1922
roku,” in Mohylians’ki chytannia 2004: Zbirnyk naukovykh prats’ (Kyiv,
2005), pp. 77-98.
39 Kyivan Cave Monastery Preserve [Zapovidnyk “Kyievo-Pechers’ka Lavra”],
Fondy, A-525/2, Ark. 2-zv. A stamp on page 2 reads: “Lavrs’kii muzei pry
Hubpolitosviti m. Kyiv” [Lavra Museum of the Gubernia Political Education
Administration of the c. of Kyiv]. I removed this document and made a copy
of it when I worked in the preserve’s division of preservation of monuments
in 1971-72. Full publication in Bilokin’, “Vtraty ukra?ns’ko? kul’turno?
spadshchyny pid chas holodu 1922 roku,” pp. 77-98.
40 See: B. St., “Iz”iatie zolota: Materialy k istorii bol’shevistskogo
terrora,” Vestnik Instituta po izucheniiu istorii i kul’tury SSSR (Munich),
1951, vol. 1, pp. 142-44.
41 Bilokin’, “Bronievoi (Faktorovich) O. Io.,” Entsyklopediia istorii
Ukrainy, vol. 1: A-V (Kyiv: Naukova dumka, 2003), p.  382. We know of two
Bronevoi brothers (real name Faktorovich), who served in the GPU – Aleksandr
Iosifovich and Solomon Iosifovich. Inasmuch as the latter served first in
the EKO PP OGPU [Economic Plenipotentiary Directorate of the OGPU] in the
Ivanov industrial oblast, and only much later in Ukraine, after the trial of
the Union for the Liberation of Ukraine [SVU] – from 3 May 1934 (head of the
6th department of EKO PP OGPU) – this refers to someone else, and if this is
a dynasty, more likely to Aleksandr Iosifovich. The latter became the deputy
chief of the Economic Directorate of the GPU of the URSR on 18 April 1934
(Yu. Shapoval, V. Prystaiko, and V. Zolotar’ov, ChK-GPU-NKVD v Ukra?ni:
Osoby, fakty, dokumenty (Kyiv: Abrys, 1997), pp. 43-445. Neither of the
Bronevoi brothers named here served in Moscow. The first was not imprisoned
until 1938, and the latter, in 1936.
42 Dokiia Kuz’mivna Humenna, Dar Evdotei: Ispyt pamiati, vol. 2, Zhar i
kryha (Baltimore-Toronto: Smoloskyp, 1990), pp. 247-48.
43 See B. St., “Iz”iatie zolota: Materialy k istorii bol’shevistskogo
terrora,” pp. 142-44.
44 Marochko, “‘Torhzin’: zolota tsina zhyttia ukrains’kykh khliborobiv,” p.
457. The passage is quoted in a Ukrainian translation by the author from the
original Russian.
45 Ibid., p. 463.
46 Ibid., p. 466.
—————————————————————————————————-
Article above cannot be republished without permission from Rodovid Press.
BOOK: “Ukrainian Sculpture And Icons, A History of Their Rescue”
Exhibition Catalogue from the collection of the President of Ukraine,
Viktor Yushchenko, and the collections of Petro Honchar, Ihor Hryniv,
Volodymyr Koziuk, Vasyl Vovkun, and Lidia Lykhach.
Copyright by Rodovid Press, Lidia Lykhach, Kyiv, Ukraine, 2006
IN KYIV: vul. Sakasahans’koho 35, kv. 54; Kyiv 01033 Ukraine;

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22.        LE TABOU DE L'”HOLODOMOR” UKRAINIEN 
                         
LE MONDE, Paris, France, Friday, November 24, 2006 .

‘Histoire n’est pas neutre. Dans l’ex-Union soviétique encore moins
qu’ailleurs. L’Ukraine s’apprête à commémorer, samedi 25 novembre, la famine
qui a frappé le pays en 1932 et 1933. Connue sous le nom d'”Holodomor”
(“extermination par la faim”, en ukrainien), cette page de l’ère stalinienne
a fait plusieurs millions de morts, principalement dans les régions de
Kharkiv et de Dniepropetrovsk. L’anniversaire est, cette année, plus
politique que jamais.

Le président Viktor Iouchtchenko a déposé, début novembre, un projet de loi
“sur la perpétuation de la mémoire des victimes de la famine”. Le texte
prévoit notamment de punir quiconque contesterait son caractère génocidaire.
“Nous n’accusons aucun peuple, aucun pays et personne, en Ukraine, de
génocide. Ce n’est pas le but de cette loi”, a assuré le président, le 15
novembre.

Tout de même. L’affaire survient alors que Viktor Iouchtchenko est en train
de rompre le pacte de gouvernement scellé en août, après les élections
législatives, avec le parti prorusse de Viktor Ianoukovitch, qui représente
justement ces russophones dont les parents sont venus s’installer en Ukraine
pour combler la saignée démographique de la famine.

Les partisans de M. Ianoukovitch sont divisés sur l’opportunité de voter ce
projet de loi. En visite à Kiev, début novembre 2006, Sergueï Lavrov,
ministre russe des affaires étrangères, a de son côté refusé que la famine
soit considérée comme un génocide.

Le texte fouaille une blessure de la mémoire ukrainienne. Occultée de
l’histoire officielle soviétique, l’Holodomor a marqué les familles et
entretenu le ressentiment vis-à-vis de Moscou. Dans les périodes de tensions
avec le grand voisin ou dans les phases d’impopularité interne, le
gouvernement ukrainien se saisit de la tragédie.

En 2003, avant la “révolution orange”, le Parlement ukrainien avait voté une
résolution – pas une loi – qui assimilait déjà la famine de 1932-1933 à un
“génocide”, “un acte terroriste délibéré du système stalinien” et “un des
facteurs importants pour la reconnaissance de l’indépendance ukrainienne”.

L’offensive du président est également diplomatique. Le 27 octobre, un
représentant ukrainien a appelé, lors d’une réunion de l’Assemblée générale
de l’ONU, “tous les Etats à condamner l’Holodomor et à promouvoir sa
reconnaissance internationale, particulièrement par les Nations unies, comme
génocide contre la nation ukrainienne”. Une dizaine de pays, la plupart
abritant une forte communauté ukrainienne comme les Etats-Unis, le Canada

ou l’Australie, ont aujourd’hui reconnu officiellement ce caractère
génocidaire.

La France, qui aime tant légiférer sur l’Histoire, ne fait pas partie de la
liste. “Le gouvernement français n’envisage pas, à ce stade, de se prononcer
sur la qualification politique et juridique de la grande famine comme crime
de génocide”, assurait, en 2005, le ministère des affaires étrangères, en
réponse à une question écrite d’un sénateur.

L’exploitation politique de la famine ne facilite pas le travail des
historiens, déjà compliqué par le long interdit qui a pesé sur le sujet.
“Nous sortons d’un silence absolu de soixante ans”, constate Nicolas Werth,
l’un des meilleurs connaisseurs français de la période, directeur de
recherche à l’Institut d’histoire du temps présent, dépendant du CNRS.

L’ouverture partielle des archives de l’ex-URSS a amélioré la connaissance,
tout comme les témoignages des derniers survivants, recueillis notamment par
Georges Sokolov (L’Année noire 1933 : la famine en Ukraine, Albin Michel).
Les rapports de la Guépéou sur les “difficultés alimentaires” apportent un
éclairage glacial mais circonstancié. Les estimations divergent encore sur
le bilan, mais le chiffre de 5 millions de morts est le plus fréquemment
évoqué.

La gravité de la famine est cependant contestée par quelques historiens
revendiquant leur fidélité communiste. La Française Annie Lacroix-Riz, qui
enseigne à Paris-VII, dénonce ainsi une “opération de propagande”, “un
bobard” et préfère évoquer “une sérieuse disette conduisant à un strict
renforcement du rationnement” (Sur la “famine” en Ukraine en 1933 : une
campagne allemande, polonaise et vaticane). Contactée par Le Monde,
l’historienne n’a pas donné suite à notre appel.

Les réfractaires s’appuient notamment sur le voyage d’Edouard Herriot dans
la région en 1933. L’homme politique radical s’était répandu sur la
prospérité des campagnes ukrainiennes. Mais des travaux historiques ont,
depuis, démontré comment le voyageur, obnubilé par sa volonté d’un
rapprochement franco-soviétique, avait été magistralement abusé par ses
hôtes.

Le journaliste américain Walter Duranty, correspondant du New York Times

à Moscou, prix Pulitzer 1932, a également nié jusqu’à sa mort, en 1957,
l’existence d’une famine. Mais son journal a récemment soumis ses articles à
un examen critique et conclu que sa couverture était “discréditée”. Une
campagne a été lancée outre-Atlantique pour que le prix Pulitzer lui soit
retiré.

Si la réalité de la famine n’est plus guère contestée, le principal débat
concerne donc la qualification de génocide. La pénurie alimentaire est née
de réquisitions massives, virant au pillage, organisées à partir de l’été
1932. Elle a surtout touché les régions les plus hostiles à la
collectivisation des terres et les foyers du nationalisme ukrainien.

Les victimes avaient interdiction de sortir du périmètre dans lequel les
vivres avaient été confisqués. Elles y étaient renvoyées quand elles
tentaient de s’en échapper. Tandis que des hommes mouraient de faim, l’URSS
exportait des céréales (1,7 million de tonnes en 1932, puis en 1933).

Selon l’historien Stéphane Courtois, coauteur du Livre noir du communisme,
“cette famine préméditée, organisée, systématisée était destinée à éliminer
la partie la plus dynamique de la paysannerie. Il faut appeler cela un
génocide de classe”. “C’est un génocide par famine”, estime le docteur Yves
Ternon, auteur de Guerres et génocides au XXe siècle, ouvrage à paraître en
janvier chez Odile Jacob. “Les historiens ont la volonté de contenir la
définition de génocide, mais, même selon des critères restrictifs, la mort
par famine délibérée de 5 millions de personnes est sans aucun doute un
génocide”, poursuit le spécialiste.

“Une volonté punitive est-elle une volonté génocidaire ?”, interroge
cependant Pavel Chinsky, normalien franco-russe enseignant à Moscou et
auteur de Staline. Archives inédites 1926-1936 (éd. Berg). Egalement opposés
à la collectivisation, les nomades du Kazakhstan, les paysans des bords de
la Volga ou les cosaques du nord du Caucase ont été à la même époque l’objet
de mesures répressives qui ont abouti à de terribles famines.

Longtemps, Nicolas Werth s’est montré circonspect sur la qualification de
l’Holodomor. Mais les derniers textes exhumés des archives, notamment des
lettres de Staline, ont infléchi sa position. “Est-ce un génocide ? Plutôt
oui. Par rapport aux autres famines qui ont touché l’Union soviétique,
celle-ci se distingue par la volonté d’éradiquer le nationalisme et de punir
des paysans.

Elle est aggravée volontairement. Il y a une spécificité”, estime-t-il. Près
de soixante-quinze ans après, les archives ne sont encore qu’entrouvertes

et le débat est soumis aux pressions. “Il y a, dans certaines démarches
historiques, la recherche d’une part de revanche”, regrette Pavel Chinsky.
“Être historien reste un métier difficile en Russie”, constate-t-il.    -30-
———————————————————————————————-
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Washington Office, SigmaBleyzer, The Bleyzer Foundation

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AUR#792 Nov 22 Business Investments Strong; CEO Writes PM Yanukovych; No Orange Revolution Celebration; NATO Ukrainian Perspective

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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 792
Mr. E. Morgan Williams, Publisher and Editor  
PUBLISHED IN KYIV, UKRAINE, WEDNESDAY, NOVEMBER 22, 2006 
           –——-  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.         FOUR NEW HOTELS TO OPEN IN KYIV BY LATE 2006
In 2007, five large hotels will be launched, in 2009, two more hotels will open
Interfax-Ukraine, Kyiv, Ukraine, Tuesday, Nov 21, 2006

2GERMAN INVESTORS TO INVEST IN RAPESEED PRODUCTION
             AND PROCESSING IN UKRAINE’S KHARKIV REGION
Interfax-Ukraine, Kyiv, Ukraine, Tuesday, November 21, 2006

3. LITHUANIA’S NARBUTAS & KO INCREASES OFFICE FURNITURE
             SALES JAN THROUGH OCT 2006 IN UKRAINE BY 39%
Interfax-Ukraine, Kyiv, Ukraine, Tuesday, November 21, 2006

4. CHINA’S GREAT WALL MOTOR COMPANY CONSIDERS UKRAINE
                             AFTER DIFFICULTIES IN RUSSIA
AFX News Limited, Beijing, China, Monday, November 20, 2006

5.     US EMBASSY ECONOMIC COUNSELOR SAYS JOINING THE

Interfax Ukraine News, Kyiv, Ukraine, Friday, November 17, 2006

6.    RUSSIA TO JOIN WTO ON BETTER TERMS THAN UKRAINE
Itar-Tass, Hanoi, Vietnam, Monday, Nov 20, 2006

 
Ukrainian Times, Kyiv, Ukraine, Monday, November 20, 2006

8.   UKRAINE, POLAND PLAN ODESSA-BRODY-BLOCK PIPELINE
New Europe, Athens, Greece, Wed, November 22, 2006

9.      POLISH-UKRAINIAN RELATIONS: ACTIONS NOT WORDS!
Polish News Bulletin, Warsaw, Poland, Tuesday, Nov 21, 2006

10.           UKRAINE TO DEVELOP GAS SUPPLY IN POLAND
Interfax-Ukraine news agency, Kiev, in Russian, 17 Nov 06
BBC Monitoring Service, United Kingdom, Friday, Nov 17, 2006

11. ENERGY COMPANY CEO URGES UKRAINIAN PM YANUKOVICH

 TO SUPPORT INTERNATIONAL INVESTMENT, REJECT OLIGARCHIC
               CONTROL OF STATE COMANIES AND INDUSTRIES
   Robert Bensh Publishes Open Letter to Mr. Yanukovich on Eve of U.S. Visit
PRNewswire, Houston, Texas, Tuesday, November 21, 2006

12.    IRAN LOSES $120M IN AIRCRAFT PROJECT WITH UKRAINE
Defense-Express website, Kiev, in Russian 21 Nov 06
BBC Monitoring Service, United Kingdom, Tuesday, Nov 21, 2006

13. UKRAINIAN BUS GROUP CONDEMNS VIOLENCE AGAINST EXECS
Associated Press (AP), Kiev, Ukraine, Saturday, November 18, 2006

14.    STEPPE CHANGE – RUSSIA’S SMART NEW BUSINESS BREED
                                 IS LOOKING WEST FOR DEALS
      Report found Russian groups dominate energy and telecommunications

        in Ukraine, Belarus, Kazakhstan and Uzbekistan and are moving into
                             metals, retail, food and financial services.
By Neil Buckley, Joanna Chung and Peter Marsh
Financial Times, London, UK, Tuesday, November 21 2006

15. PRES YUSHCHENKO URGES GOVERNMENT TO WORK OUT A
        COMPROMISE SOLUTION TO GRAIN EXPORT BLOCKAGE
Agro Perspedctiva, Kyiv, Ukraine, Monday, November 20, 2006

16.      REVOLUTION DISCOVERED UKRAINE FOR OURSELVES
                   2nd Orange Revolution Anniversary with a bitter taste
Maksym Strikha, Ph.D. (Physics and Mathematics), writer
The Day Weekly Digest in English, Kyiv, Ukraine, Tue, Nov 21, 2006

17.      NO ORANGE REVOLUTION CELEBRATION IN UKRAINE
   Ukraine prepares to mark 2nd anniversary of the Orange Revolution quietly
Mara D. Bellaby, AP Worldstream, Kiev, Ukraine, Tue, Nov 21, 2006

18.                      UKRAINE: A REVOLUTION RECEDES
COMMENTARY: by Peter Brookes, The Conservative Voice
Kernersville, North Carolina, Monday, November 20, 2006

19.                  UKRAINE’S NATO ACCESSION PROCESS-

                                  UKRAINIAN PERSPECTIVE
KEYNOTE SPEECH: By Volodymyr Khandohiy
Deputy Minister of Foreign Affairs of Ukraine
Ukraine’s Quest for Mature Nation Statehood Roundtable VII:
UKRAINE AND NATO MEMBERSHIP
Ronald Reagan International Trade Center
Washington DC, October 17-18, 2006

20.                      NATO NEEDS TO BE LESS AMBITIOUS
COMMENTARY: By Francois Heisbourg, Financial Times
London, United Kingdom, Tuesday, November 21 2006

            DESTRUCTION OF PEOPLE BUT NOT AS A GENOCIDE
Ukrainian News Agency, Kyiv, Ukraine, Monday, November 20, 2006
 
23.   UKRAINE WENT THROUGH HELL – THIS WAS THE GENOCIDE
PERSONAL COMMENTARY: By Natalia Dziubenko-Mace
The Day Weekly Digest, Kyiv, Ukraine, Tuesday, November 21, 2006
 
24  REQUIEM FOR VICTIMS OF 1932 – 1933 FAMINE HELD IN NYC
Natalia Bukuvch, Ukrinform, Kyiv, Ukraine, Monday, November 20, 2006
 
25.                             NOT ENOUGH INFORMATION
      Absence of mechanisms of delivering important information to society
By Viktoria Herasymchuk, The Day Weekly Digest #37
Kyiv, Ukraine, Tuesday, 21 November 2006 
 
26.                A HAUNTING REMINDER OF THE SOVIET PAST
EDITORIAL: The Independent, London, UK, Tue, Nov 21, 2006
 
27.                                       POLITICAL POISON
A coincidence that enemies of Vladimir Putin keep ingesting toxic substances?
EDITORIAL: The Washington Post
Washington, D.C.,Tuesday, Nov 21, 2006; Page A26
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1
   FOUR NEW HOTELS TO OPEN IN KYIV BY LATE 2006
 In 2007, five large hotels will be launched, in 2009, two more hotels will open

Interfax-Ukraine, Kyiv, Ukraine, Tuesday, Nov 21, 2006

KYIV – Four new hotels will open by the end of this year in Kyiv, Kyiv’s
chief department for municipal economy has told Interfax-Ukraine.

According to a department report, a five-star hotel named the Opera, with
140 rooms, at 53 Bohdan Khmelnytsky Street, is soon to open. The hotel

cost UAH 140 million to build.

A three-star hotel complex, the Riviera, with 71 rooms, will be launched at
the corner of Borychev Uzviz and Sahaidachny Street. The cost of the

complex was UAH 21 million.

Moreover, a four-star hotel, the Podil-Plaza, with 57 rooms at 7-a
Kostaintynivska Street, will also open this year. The cost of the project
was UAH 20 million.

And another four-star hotel, with 30 rooms, is to open at 34 Kostaintynivska
Street. The cost of the project was UAH 7.4 million. At present, another 23

hotels are under construction in Kyiv, all of which are to be launched in 2007
through 2009.

In 2007, five large hotels will be launched. In particular, the Hyatt
Regency Saint Sophia Kyiv (a five-star hotel with 237 rooms at 5 Tarasova
Street); the Golden Domes (a five-star hotel with 280 rooms at 2-a
Zhytomyrska Street); and an international hotel complex at 79 Antonovych
Street (a four-star hotel with 192 rooms).

In 2007, a hotel with 99 rooms at 25-b Sahaidachny Street and a hotel with
50 rooms at 3-b Toulouse Street are scheduled to open.

In 2008, two large hotels are to open- the Hilton, with 270 rooms and 150
suits at 28-30 Taras Shevchenko Street, as well as an international hotel
complex at 14-v Liuteranska Street – a four-room hotel with 330 rooms.

In 2009, four large hotels will be opened, in particular, the Leipzig hotel
complex with 209 rooms at 24/39 Prorizna Street, a five-star hotel complex
with 371 rooms at 21 Naberezhno-Khreschatytska Street, an administrative

and hotel complex Pan Ukraine with 104 rooms at 69 Honchar Street, and a
hotel complex with 100 rooms at 92-b Hlushkov Street.

Moreover, a number of small hotels will be opened. A project to create a
small hotel network in Kyiv has been drawn up to support small business in
the hotel sector and to create a favorable investment climate in Kyiv.  -30-
————————————————————————————————-

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2. GERMAN INVESTORS TO INVEST IN RAPESEED PRODUCTION
            AND PROCESSING IN UKRAINE’S KHARKIV REGION

Interfax-Ukraine, Kyiv, Ukraine, Tuesday, November 21, 2006

KYIV – German investors are planning to invest EUR70 million in growing

and processing rapeseeds in Ukraine’s Kharkiv region, the regional
administration said in a press release.

Work is underway to establish a Ukrainian-German enterprise that will plant
and process rapeseeds, the release says, citing Mykola Horoshko, head of

the region’s Shevchenko district.

The construction of the rapeseed processing plant and the installation of
the equipment are scheduled for 2007 or the beginning of 2008. Other

project details and investor information have not been disclosed.  -30-
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3. LITHUANIA’S NARBUTAS & KO INCREASES OFFICE FURNITURE
             SALES JAN THROUGH OCT 2006 IN UKRAINE BY 39%

Interfax-Ukraine, Kyiv, Ukraine, Tuesday, November 21, 2006

KYIV – The Ukrainian representative office of Lithuania’s Narbutas & Ko, the
office furniture producer, in January through October 2006 increased its
sales in Ukraine by 39%, to EUR 4.669 million, according to a company

press release issued on Monday. The press service said that this figure has
already exceeded sales in 2005 by 10%.

The company said that at present, the Ukrainian office furniture market is
estimated to be worth between EUR 385 million and EUR 415 million, and it
has grown since 2000 by approximately five times.

‘The pace of growth in sales of the Ukrainian representative office of
Narbutas & Ko is high,” reads the release. If in 2000 the volume of sales in
the country was EUR 13,000, in 2003 it was EUR 2.33 million, and in 2005 it
was EUR 4.244 million.

According to the release, in January through October, the overall volume of
sales of all representative offices of Narbutas & Ko grew by 24% compared to
2005, to EUR 17.17 million, including a Lithuanian share of 35%, a Ukrainian
share of 22% and a British share of 20%. The company also sells its products
in Russia, Latvia and Germany.                         -30-
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4. CHINA’S GREAT WALL MOTOR COMPANY CONSIDERS UKRAINE
                            AFTER DIFFICULTIES IN RUSSIA

AFX News Limited, Beijing, China, Monday, November 20, 2006

BEIJING (XFN-ASIA) – Great Wall Motor is considering a change in location
for a planned 70 mln usd factory to Ukraine from Russia if the project
continues to be blocked by the Russian government, the South China Morning
Post reported, citing a company official.

The plant, which is scheduled to have a maximum assembly capacity of

50,000 cars mainly for sale in Russia, was scheduled to begin operations by
mid-2007, the Hong Kong newspaper reported.

However, the timetable has been delayed due to Russian concerns that the
factory will undercut locally owned producers.

‘We will make the final consideration early next year,’ the newspaper quoted
Great Wall Motor deputy general manager Bai Xuifei as saying.

China’s Ministry of Commerce has said it is in contact with Russian
authorities to mediate, and the company expects a final decision later this
month, the report said. Russia currently accounts for 33 pct of the exports
of Great Wall, China’s largest pick-up truck and sport-utility vehicle
maker.  (andrew.pasek@xinhuafinance.com)

————————————————————————————————
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========================================================
5.   US EMBASSY ECONOMIC COUNSELOR SAYS JOINING THE
        WTO WOULD BE A GOOD STEP FOR UKRAINE TO TAKE
 
Interfax Ukraine News, Kyiv, Ukraine, Friday, November 17, 2006

KYIV – Joining the World Trade Organization will be a good step for

Ukraine to take, despite the pain it might cause to some sectors of the
country, according to Douglas Kremer, counselor for economic affairs
at the U.S. Embassy in Ukraine.

“The integration of the world economy means tougher competition, which is

an advantage for consumers but may also be sensitive in the short-term period
for certain producers. There is no sense in Ukraine being isolated from the
world trade system,” Kramer said at a science and practical conference on
the social and economic policies of Ukraine in Kyiv on Friday.

The opening of the Ukrainian market, he said, will be an incentive to
restructure the nation’s industry. The short-term complications, he said,
might not be as bad as some believe in Ukraine.

Although some businessmen and industries may suffer losses, he said, the
long-term advantages for all Ukrainians would outweigh the short-term
negative consequences. Furthermore, Ukraine’s joining the WTO will open

up the prospect of a free trade agreement with the European Union, he said.
————————————————————————————————
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6. RUSSIA TO JOIN WTO ON BETTER TERMS THAN UKRAINE

Itar-Tass, Hanoi, Vietnam, Monday, Nov 20, 2006

HANOI- Russia will be able to protect its interests, when joining the
World Trade Organisation (WTO), and to join it on more favourable
terms, than Ukraine, for example, Konstantin Kosachev, head of the
Duma committee for international affairs, told Itar-Tass on Monday.

He is staying here together with a Russian delegation, which accompanies
President Vladimir Putin in his visit to Vietnam. He believes other
countries, specifically Georgia, will not manage to use the multilateral talks

on Russia’s joining of WTO, which are beginning now, for furthering its
own aims.

“It is of key importance that Russia signed the bilateral protocol with the
United States not for a special date, but after reaching agreement on the
terms, which are acceptable both for Russian and American interests,”
Kosachev said, commenting on the signing on Sunday of the Russian-
American protocol on the end of the talks on Russia’s joining of WTO.

He believes that the failure to sign the Russian-American protocol in July
is evidence of the fact that “the talks were really constructive, and the
documents are the result of painstaking work.”

“Multilateral talks for China took 20 months. Russia has more ambitious
plans: to complete such talks much more quickly . This is a realistic
target, but we are not going to set any time limits . Russia will be a WTO
member on the terms, which are advantageous for us. We have managed
to protect all our interests without exception,” Kosachev continued.

He compared the work for joining WTO done by Russia and by Ukraine.
In his opinion, Kiev chose a different way. “The impression is that time
was the key factor for Ukraine. They wanted to join WTO at all costs,
but sooner than Russia,” he said.

He believes the haste will “play a bad joke on them.” Kosachev explained
that Ukraine “reduced almost to naught the import duties on sugar and
on the aircraft imported by Ukraine.” This might create serious problems
for the Ukrainian economy in the future.

Kosachev believes it is quite probable that another CIS member country,
Georgia, will try to use the coming multilateral talks on Russia’s joining
WTO for furthering its own interests. “Georgia will not be allowed to abuse
the situation, and I do not expect serious delays for Russia,” he said.
————————————————————————————————
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7. OVER $4 BILLION TO BE INVESTED IN 2007, SAYS EBA

 
Ukrainian Times, Kyiv, Ukraine, Monday, November 20, 2006

KYIV – According to forecasts by the European Business Association

(EBA), $4-5 billion will be invested in the Ukraine’s economy in 2007.

Jorge Intriago, EBA vice-president and partner of PricewaterhouseCoopers,
told The Ukrainian Times that the country received $4 billion worth of
foreign investments this year, compared with a peak of $7 billion in 2005 in
consideration of the sale of the mining and smelting plant KryvorizhStal to
Mittal Steel.

Note that from 1991 through 2004 the influx of foreign investments has
totaled only $7 billion. “Ukraine deserves $8-9 billion at best versus $5-6
billion being invested in Poland per year but it can be $4-5 billion in
reality,” said Mr. Intriago.

At present, foreign investors and particularly venture capital funds are
rather interested in practical aspects of doing business than concerned
about the investment climate in the country.

To encourage them to business activity in Ukraine, the EBA held an
investment forum in London, which was attended by about 100 managers

of British companies.

It was pointed out at the get-together that the great boom in the Kiev’s
real-estate market set in: commissioning of nearly 900,000 square meters

of offices, the trading and industrial premises is scheduled for next year
alone in the Ukrainian capital city.

The implementation of two pilot projects of establishing industrial parks
will start in the near future. One of them is expected to be carried out in
the town of Pryluky, Chernihiv region, on the initiative of British Tobacco.

In addition, the projects of launching a building materials plant,
enterprises designed to make cables, household appliances and electronic
equipment, among others are under discussion.       -30-
————————————————————————————————

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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    NOTE: Send in a letter-to-the-editor today. Let us hear from you.
========================================================
8.  UKRAINE, POLAND PLAN ODESSA-BRODY-BLOCK PIPELINE

New Europe, Athens, Greece, Wed, November 22, 2006

KYIV – Ukraine and Poland plan to draft an intergovernmental agreement on
transporting Caspian oil via the Odessa-Brody-Plock pipeline, based on the
European Commission’s recommendations, the Ukrainian Fuel and Energy
Ministry reported on November 16.

The agreement is to be drafted in line with a protocol of the first meeting
of the Ukrainian-Polish Intergovernmental Commission for Economic
Cooperation, signed by Ukrainian Fuel and Energy Minister Yury Boiko and
Polish Economy Minister Piotr Wozniak in Kiev on November 15.

The commission recommended that the two countries form a working group to
convene before December 15 and negotiate the document as soon as possible.

The protocol also said third countries – oil suppliers – must be involved in
cooperation under the Odessa-Brody-Plock project.

The Ukrainian-Polish commission also asked Poland’s Przedsiebiorstwo
Eksploatacji Rurociagow Naftowych “Przyjazn” and Ukrtransnafta to finalise
the Odessa-Brody-Plock business plan, and find investors and oil suppliers
in the Caspian Sea, as well as oil consumers.

Przyjazn and Ukrtransnafta were recommended to explore the possibility of
expanding operations by the Ukrainian-Polish pipeline company Sarmatia and
increasing its charter capital before the end of the year.

The Ukrainian-Polish commission expressed interest in cooperation between
Polish and Ukrainian companies in prospecting and extracting oil in Poland,
Ukraine and third countries, the protocol read.

Przyjazn and Ukrtransnafta formed Sarmatia in 2004 to draw up estimates, to
find investment and to build the Brody-Plock oil pipeline.

Ukrainian President Viktor Yushchenko and Poland’s Prime Minister Jaroslaw
Kaczynski discussed the implementation of the Odessa-Brody-Plock pipeline
during the latters official trip to Kiev on November 15.

Yushchenko and Kaczynski stated the completion of the pipeline as the
ultimate priority in Ukraine’s cooperation with Poland and the European
Union and reiterated the necessity to begin the practical implementation of
the project in the near future.

Ukraine and Poland have also decided to join forces to work on a project to
ship crude oil through the Odessa-Brody pipeline to the Czech town of
Kralupy, Ukrainian Prime Minister Viktor Yanukovich announced on November
15.

“The solution of this problem will add optimism to all participants in the
project, and this will be a real step toward starting work on the project,”
Yanukovich told a joint news conference in Kiev with Kaczynski.Caspian
states potentially interested in the project “are interested in this step,”
Yanukovich added.

“The Polish premier and I have reached an agreement to work jointly to that
end,” he said.Kaczynski did not say when the Odessa-Brody pipeline would be
extended to Plock, Poland, but said his country “has financial resources to
put this project into practice.”Ukraine is also looking for oil suppliers in
the Caspian Sea.

The Ukrainian Cabinet of Ministers has directed the energy ministry,
Naftogaz Ukrainy, and Ukrtransnafta to hold talks by 2008 with Kazakh
national oil and gas company KazMunaiGaz regarding its participation in a
project to extend the Odessa-Brody oil pipeline to Plock in Poland.

This directive is contained in a programme for the diversification of oil
supplies to Ukraine until 2015, which the cabinet of ministers endorsed on
November 8.

The Odessa-Brody pipeline was built in 2001 to transport Caspian oil. It was
not used for several years. At the end of June 2004 the Ukrainian government
permitted its use in reverse to transport Russian oil.

A contract to transport oil to Ukraine’s Yuzhny terminal, signed on June 8,
2004, deals with the transportation of up to nine million tonnes of Russian
Urals oil per year. However, in the first half of 2006 only 1.8 million
tonnes were pumped in reverse.                        -30-

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9.  POLISH-UKRAINIAN RELATIONS: ACTIONS NOT WORDS!

Polish News Bulletin, Warsaw, Poland, Tuesday, Nov 21, 2006

For the last few years, the goals of Polish foreign policy towards Ukraine
have remained unchanged. The policy’s main objectives include strengthening
the country’s partnership with the EU, backing its efforts to meet the
Copenhagen criteria and manifesting this support on the international scene.

During the Ukrainian Orange Revolution, Warsaw showed just the type of
activity in this field that the situation called for, with former Polish
President Aleksander Kwasniewski developing ties with both the then
Ukrainian head of state Leonid Kuchma and his successor Viktor Yushchenko.

In the last few months, however, Polish-Ukrainian relations have not been
paid the necessary attention, which is detrimental for both the countries
involved and, in the broader perspective, for the whole of Europe.

While the recent visit of PM Jaroslaw Kaczynski to Kiev does create brighter
prospects for the future, there are several other issues which should
simultaneously be taken care of.

One such issue is the relaunching of the Polish-Ukrainian intergovernmental
committee for economic co-operation. In order for it to increase its
influence on economic ties between the two countries, its functioning should
be overseen at least by deputy PMs responsible for economic issues.

Following the definition of the most important matters to be attended, the
committee should establish specialised working groups, which would be
responsible for forming guidelines and coming up with specific solutions
concerning Polish-Ukrainian co-operation in the field of commerce,
investment and labour market, as well as power, agricultural, food and
constructions sectors.

Unlike the declarations made regarding the matter by current Ukrainian PM
Viktor Yanukovych, forming the working groups and ensuring their efficient
functioning would be likely to breathe new life into the long-delayed
project of extending the Odessa-Brody oil pipeline to Plock.

On the other hand, it cannot be forgotten that despite the changes made to
the Ukrainian constitution, the power and influence the president of the
country has remain vast, especially in the field of foreign policy and
security.

Keeping this in mind, it seems natural that the Polish head of state should
make efforts to tighten relations with Ukraine at the presidential level.

While during his stay at the helm Lech Walesa established a special
committee for this purpose, since the swearing-in of Lech Kaczynski it has
remained inactive.

This situation is most disturbing, given the role that the president has to
play is shaping the bilateral relations between Poland and Ukraine. His main
areas of interest and activity should include regional and international
policy, as well as military co-operation.

In order for Warsaw to be able to effectively support Kiev’s efforts
concerning Ukraine’s integration with the EU, Poland should prepare a set of
concrete proposals regarding the European Neighbourhood Policy in the
region. These proposals should be consulted with Ukraine both on the
governmental and presidential level.

In this way, Poland would gain real possibility to represent Ukraine’s
interests on the European forum, at the same time not acting as a mentor for
its Eastern neighbour.

Probably, the Polish authorities should follow the example of Germany, which
for many years has maintained a group of experts in Kiev, where they counsel
the Ukrainian PM on various matters.

It can safely assumed that with their experience from the political and
economic transformation in Poland, domestic economists and management
experts could play a similar role in Ukraine.

Last but not least, there is a lot to be done at the regional level. For
example, despite the lofty declarations, the Polish-Ukrainian college in
Lublin has still not been transformed into a proper Polish-Ukrainian
university, which would have surely strengthened the bonds between the

youth of both countries.

While the importance of official visits is undeniable, perhaps greater
efforts should be taken in order to encourage development of ties among

the population of the Polish and Ukrainian border regions.      -30-
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10.   UKRAINE TO DEVELOP GAS SUPPLY IN SE POLAND

Interfax-Ukraine news agency, Kiev, in Russian, 17 Nov 06
BBC Monitoring Service, United Kingdom, Friday, Nov 17, 2006

KIEV – Ukrainian Fuel and Energy Minister Yuriy Boyko has said the

country is planning to develop a gas supply project in southeastern Poland,
Interfax-Ukraine news agency reported on 17 November.

Speaking in the Macedonian capital Skopje today, Boyko said: “Our
crossborder cooperation is progressing in a rather intensive manner. We

have the gas supply project. It will be developed.”

A gas pipeline stretching from Ustiluh in Ukraine’s Volyn Region to Poland’s
Hrubieszow, which can transport up to 400m cu.m. of natural gas per year,
started operating in 2005. It supplies gas to Poland’s southeastern areas. -30-
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================

11. ENERGY COMPANY CEO URGES UKRAINIAN PM YANUKOVICH
 TO SUPPORT INTERNATIONAL INVESTMENT, REJECT OLIGARCHIC
              CONTROL OF STATE COMANIES AND INDUSTRIES
   Robert Bensh Publishes Open Letter to Mr. Yanukovich on Eve of U.S. Visit

PRNewswire, Houston, Texas, Tuesday, November 21, 2006

HOUSTON – Today, Cardinal Resources CEO Robert J. Bensh published

an open letter in The Washington Times urging Ukrainian Prime Minister
Viktor Yanukovich to support foreign direct investment in Ukraine and
reject oligarchic control of state companies and industries.

The ad appeared days before Mr. Yanukovich’s expected visit to

Washington, DC.

“Your visit to the U.S. in early December will no doubt seek additional
funding from U.S. investors,” Mr. Bensh wrote in his public letter to Mr.
Yanukovich.

“But investors will have hard questions for you regarding Ukraine’s
treatment of foreign investors and the paralyzing corruption you have
promised to fight.”

Cardinal Resources is a U.K.-based energy company with subsidiaries

in the United States and operations in Ukraine.

Cardinal has a contractual commitment with Ukrnafta, a private/public
state oil and gas company, to invest millions of U.S.-based venture capital
in Ukraine for continued development of natural gas resources.

Cardinal’s contract has not been executed due to the influence of a
Ukrainian oligarch who has an ownership stake in Ukrnafta and opposes
foreign investment in the region and partnerships with Ukrnafta to develop
oil and gas properties. However, the Ukrainian government holds more than

a 50 percent ownership interest in Ukrnafta.

Mr. Yanukovich has the power to send a clear message to the U.S. investment
community that it opposes corruption, stands for rule of law and welcomes
foreign direct investment by honoring Cardinal’s contract with the
country — goals he has stated as a platform for his appointed government in
advance of his trip to the United States.

Mr. Bensh wrote that companies such as Cardinal “answered the call after the
Orange Revolution and committed millions of new dollars to develop Ukraine’s
moribund energy resources.”

But he added Ukraine thus far has turned “a blind eye to a state-owned
company run by an oligarch that tramples the rule of law. This is what is
happening with my company’s contract for joint development of gas fields

and investment of additional capital.”

Today, Ukraine imports upwards of 85 percent of its natural gas from other
countries. Cardinal’s investment would benefit the people of Ukraine by
drastically reducing the country’s dependence on foreign sources of natural
gas and help the country become more energy self-sufficient.

Mr. Bensh stated: “Mr. Yanukovich: Take this opportunity to now demonstrate,
through action, that Ukraine supports sanctity of contracts and foreign
investment and opposes those who corrupt the system and rob you and your
country of what it needs: Recognition. Investment. Credibility. Domestic
Energy.”                                                    -30-
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12. IRAN LOSES $120M IN AIRCRAFT PROJECT WITH UKRAINE

Defense-Express website, Kiev, in Russian 21 Nov 06
BBC Monitoring Service, United Kingdom, Tuesday, Nov 21, 2006

KIEV – Iran has lost about 120m dollars in the IrAn-140 aircraft project but
failed to achieve a desirable result. The economic adviser of the Iranian
embassy in Ukraine, Ali Akbar Mehrabi, told this to a Defense Express
correspondent.

Only three aircraft have been assembled and another one is being assembled
since the contract was signed 11 years ago. “Under the project, we should
assemble 12 aircraft a year,” Mehrabi said.

Parts for An-140 come to Iran with great delay. He said that this is the
problem of the company which produces the aircraft and parts for it. Some
difficulties can be resolved during talks, Mehrabi said. They would appear
anyway as the project is implemented. Some others were caused by Ukraine
changing the terms of cooperation, Mehrabi believes.

“It should be noted that Ukraine has agreed at the tope level that the
project has not been implemented appropriately and Iran has already lost
about 120m dollars,” Mehrabi said. [Passage omitted: The project was
discussed on 2 November in Kiev – see Mehr news agency, Tehran, in

English 1440 gmt 28 Oct 06.]
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13. UKRAINIAN BUS GROUP CONDEMNS VIOLENCE AGAINST EXECS

Associated Press (AP), Kiev, Ukraine, Saturday, November 18, 2006

KIEV – An influential Ukrainian business association on Saturday condemned

a recent spate of attacks on businessman, warning that violence and killings
were again being used to solve business disputes in this ex-Soviet republic.

The Ukrainian Confederation of Employers, which brings together top magnates
from across the political spectrum, noted that two businessman had been
killed in the eastern city of Donetsk and one in central Ukraine, as well as
four attacks on business leaders in the western city of Lviv, including a
killing this past week.

“Such crimes must not be hushed up,” the group said in a statement. “We are
alarmed that raiders, pressure, violence and, most horribly, murder are more
often becoming the main method of doing business in Ukraine. The wave of
killings that has seized Ukraine must be stopped,” it said.

The latest slaying occurred Tuesday when a prominent businessman in the
western city of Lviv, Bohdan Datsko, was shot to death. Datsko was director
of one of Europe’s largest Christmas tree ornament factories, Halimpeks.

In Ukraine, business leaders are often major players on the political stage,
and some analysts have suggested the increasing violence is linked to
battles for power in the wake of the March parliamentary elections that
shook up the political landscape.

The Ukrainian Confederation of Employers is unusual, however, in that it
brings together tycoons with competing political bases.

“We call on everyone who seeks to live in a civilized country to condemn
these horrible crimes,” the group said. It urged dialogue among the business
community, everyday citizens and the government.

Among the businessmen killed were the director of one of Europe’s largest
Christmas tree ornament factories and the head of an eastern Ukrainian oil
product company.                             -30-
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14.   STEPPE CHANGE – RUSSIA’S SMART NEW BUSINESS BREED
                             IS LOOKING WEST FOR DEALS
    Report found Russian groups dominate energy and telecommunications

      in Ukraine, Belarus, Kazakhstan and Uzbekistan and are moving into
                           metals, retail, food and financial services.

By Neil Buckley, Joanna Chung and Peter Marsh
Financial Times, London, UK, Tuesday, November 21 2006

Agleaming steel plant stands out among the smokestacks of a 1955 steelworks
in the northern Russian city of Cherepovets – both as a symbol of how parts
of the country’s industry have been transformed in the past decade and as a
monument to what might have been.

The high-technology facility run by Severstal, Russia’s biggest steelmaker,
is a joint venture with Luxembourg’s Arcelor to make sheet steel for the car
industry. This summer, Severstal came close to going a step further and
merging with Arcelor to create the world’s number one steelmaker.

Mittal Steel of India edged it out, so this attempt by Alexei Mordashov,
Severstal’s owner, to create a Russian-inspired world-beater failed. But
within weeks Russia’s Rusal and Sual merged and incorporated assets from
Switzerland’s Glencore to form the world’s biggest aluminium producer.

Russian forays into western business are coming thick and fast. Yesterday
alone, two metals groups announced acquisitions in the US.

Evraz, Russia’s largest steel producer by volume, said it would buy Oregon
Steel Mills for $2.3bn (£1.2bn, E1.8bn). Evraz is 41 per cent owned by
Millhouse, a company of Roman Abramovich, owner of Chelsea Football Club.

Meanwhile Norilsk Nickel, the world’s largest nickel producer, agreed to buy
the nickel division of the Cleveland-based OM Group for $408m. Mikhail
Prokhorov, Norilsk general director, said the deal was “an important step
for Norilsk Nickel as it builds international business and expands
operations outside Russia”.

A dozen years on from its messy privatisation programme, Russian business is
coming of age. Groups, in some cases built around Soviet enterprises or
assets virtually written off in the 1990s, are emerging restructured and
modernised, as players in global consolidation.

Yet the questionable way some groups were assembled in the 1990s, coupled
with the Kremlin’s increasingly interventionist role, especially in energy,
means Russia’s rising giants are meeting wariness in the west. These
dealmakers are provoking the same questions from investors, suppliers and
regulators as the flood of Russian initial public offerings in London.

Will these companies export Russia’s “wild east” ways? Are they arms of
Kremlin policy? Or are they reformed, modern and independent businesses?

Mr Mordashov’s planned tie-up with Arcelor fell victim partly to such
concerns, investors fretting over his group’s opaque structure – even though
its recent history is less murky than some.

A bright young economist at the plant in the 1990s, Mr Mordashov ended up in
control by buying up Severstal shares from the workers and winning the trust
and support of the previous director.

When Arcelor shareholders chose Mittal’s offer over his, the Severstal chief
complained of “prejudice”; Viktor Khristenko, Russia’s industry minister,
called it “Russophobia”.

Undaunted, Mr Mordashov has completed a $1bn IPO in London, revamped
Severstal’s accounting and pledged to bring in western non-executive
directors to give it the credibility to ensure it does not get beaten next
time.

Many Russian tycoons are recognising that cleaning up their image is their
biggest challenge. It is, he says, “very important for us to be as public a
company as possible with a lot of transparency”.

Russia’s emerging multinationals are mostly, but not all, from the energy
and natural resources fields. Some, like Mikhail Fridman’s Alfa Group,
Vladimir Potanin’s Interros – which controls Norilsk Nickel – or Lukoil,
headed by Vagit Alekperov, are owned by first-generation oligarchs.

Others, such as Severstal, Oleg Deripaska’s Rusal or Vladimir Lisin’s
Novolipetsk Steel, are headed by slightly later-emerging business barons. A
third group is state-controlled, including Gazprom, the natural gas
monopoly, and Rosneft, the oil giant that absorbed choice assets from the
now-bankrupt Yukos.

All are hugely ambitious and, buoyed by Russia’s economic revival and high
commodity prices, their valuations have mushroomed. Gazprom’s market
capitalisation hovers around $250bn, rubbing shoulders with ExxonMobil,
General Electric and Microsoft among the world’s most valuable companies.

Rosneft’s value topped $100bn last week; that of Lukoil is touching $80bn.
Sberbank, the biggest state-controlled bank, could see its value approach
Deutsche Bank’s $60bn-plus after it completes a $10bn share issue.

The privately owned Alfa has assets estimated at $25bn. “Russian business
has already grown certain financial ‘muscles’ and we are ready to make a
more sizeable expansion into the world,” says Mr Fridman.

The rise of such groups shows Russia’s controversial privatisation programme
did accomplish at least some of its goals. It was chaotic, distorted,
corrupt and sometimes bloody, concentrating wealth in a few hands. But it
created a handful of global competitors headed by tough and savvy owners and
managers.

Many tycoons who spent the first post-Soviet years in a bare-knuckle fight
for assets – often using tactics to squeeze out foreigners or minority
investors that would make western corporate raiders blanch – have moved to
the next stage.

Following the trail blazed by Mikhail Khodorkovsky of Yukos, they are
attempting to reinvent themselves – investing in their businesses, bringing
in international technology, management and governance practices. Unlike
Russia’s former richest man, they are staying out of politics. From a
western perspective, many Russian tycoons are now talking the talk.

“Over the past three years, companies have come to understand that corporate
governance matters,” says Mr Potanin of Interros. Not all embrace it
enthusiastically, he adds. Some believe greater openness creates headaches
and risks but “everyone understands its importance”.

Various factors are behind the Russian push to expand abroad. Domestic
growth opportunities are dwindling. Some companies want access to new
markets or technologies, or to get around trade barriers – though these
could be lowered if Russia enters the World Trade Organisation next year.
Liquidity from high commodity prices is making it easy to finance deals.

Some magnates are undoubtedly looking to swap Russian assets for stakes in
bigger foreign businesses as an insurance policy, because assets abroad
would be difficult for any future Kremlin administration to take away.
Similar calculations may partly underlie the IPO rush.

Few believe anyone but an anointed successor will replace Vladimir Putin as
president in 2008. But, as Mr Putin showed by turning against some oligarchs
who backed him to succeed Boris Yeltsin, even chosen successors can be
unpredictable.

Yet the same inner drive that made owners grab the opportunity of Russia’s
1990s sell-off is pushing some to become global leaders. They also find that
the attributes that prevailed in Russia – fast decision making and a
brass-necked approach to political and economic risk – give them particular
advantages in emerging markets.

A report commissioned by Rusal from the Economist Intelligence Unit last
month found Russian groups dominate energy and telecommunications in
Ukraine, Belarus, Kazakhstan and Uzbekistan and are moving into metals,
retail, food and financial services.

A search for raw materials is turning Russian groups into big players in
Africa. Rusal has bought bauxite assets in Guinea and invested in its
industrial and social infrastructure. Ahead of its Oregon deal yesterday,
Evraz acquired South African vanadium assets.

In developed markets, Russian groups have been prepared to take on assets
few believed viable. After a $300m purchase, Severstal turned around Rouge
Industries, the fifth-largest US steelmaker and big Ford supplier that had
filed for bankruptcy protection. Now Russian companies are looking for more
mainstream deals.

Such forays have, according to the United Nations conference on trade and
development, turned Russia into the third-biggest outward investor from
emerging markets. The central bank estimates that Russia’s foreign direct
investment stock rose from $20bn in 2000 to $140bn last year.

Yet that expansion has occurred below the radar of many international
businesses. An EIU survey of more than 330 high-level executives in Europe,
North America and Asia found only 7 per cent expected to see Russian
companies become increasingly active overseas acquirers.

Only 10 per cent agreed Russian businesses were “world-class competitors”;
60 per cent expected Russian expansion into their home markets to face
political barriers.

Those who deal with Russian companies say international perceptions are
often outdated. “Russia’s top companies can clearly compete with the leaders
of the pack,” says Henk Paarde-kooper, managing director of ABN Amro in
Russia. “They are gaining ground very, very fast.”

Progress is patchy, however. Standard & Poor’s, the ratings agency, found in
a survey that while some had made strides, Russia’s 70 largest listed
companies overall made minimal progress in transparency and disclosure in
the past year. Western concerns also remain that the hand of the Kremlin may
be behind some corporate activity.

The legal assault that left Mr Khordor-kovsky in a Siberian prison – on
charges dating from the lawless 1990s that some other tycoons privately
admit could be deployed against them – is seen as having cowed the
oligarchs.

The impression of Kremlin string-pulling is reinforced by the practice of
showing business leaders such as Mr Deripaska or Mr Abramovich discussing
deals with Mr Putin on television. Mr Mordashov travelled to the president’s
summer residence to seek his blessing for Severstal’s Arcelor plan.

The link with state-controlled companies is more overt; nearly all are
chaired by Kremlin officials or ministers. Few believe the decision that
Gazprom should cut gas supplies to Ukraine in a pricing dispute in January,
for example, was not taken in the Kremlin.

Those strong-arm tactics have perhaps done most to damage the expansion
ambitions of Gazprom and, by association, Russia’s other state companies.
Such is the suspicion over Gazprom and the Kremlin’s intentions that Nato
officials this week issued a report warning that Russia might attempt to
create a natural gas cartel along the lines of Opec. The Kremlin denied any
such intentions.

Echoes of Gazprom’s blunderbuss approach could be found in the stealthy
accumulation by the state-controlled Vneshtorgbank of 5.4 per cent of EADS,
the parent of Airbus. Vneshtorgbank’s claims that the move was a financial
investment on its own initiative were undermined by comments by senior
officials and Mr Putin that Russia aspires to a role in Airbus.

Kremlin officials retort that it is normal for business people everywhere to
inform governments of big acquisition plans and for governments to lobby on
behalf of companies.

“Our private companies are growing because local markets are not sufficient
any more and they find themselves in the process of globalisation. But they
are doing it on their own,” says Dmitry Peskov, a spokesman for Mr Putin.
“Our state-owned companies live in accordance with the laws of the market
and corporate laws, not state decrees.”

Mr Peskov insists Gazprom’s Ukrainian cut-off was not political but a
justifiable commercial decision, mis-explained by Russia and
misinterpreted – perhaps willfully – in the west.

One European industrialist who has served on a Russian corporate board
believes direct state manipulation is limited to a few areas. “I think it’s
true in strategic sectors. The Kremlin is definitely playing that game in
oil and gas. But I don’t think steel, for example, is a strategic sector for
them,” he says.

Some say cultural differences are at the root of the misunderstanding
between Russian and western business and political worlds. “Gazprom does
not comprehend why its language of thinly veiled threats and bullying
behaviour is not, as at home in Russia, seen as a normal negotiating tactic,”

says Vlad Ivanenko, an Ottawa-based trade analyst who has studied Russian
business practices.

Russia’s state-controlled giants may gain greater acceptance if they follow
their privately owned counterparts in bringing in foreign directors,
managers and governance practices – as some are starting to do. Some
ministers also say the government will eventually make state companies more
arm’s-length by appointing independent chairmen.

Even if they do not get taken over by Russian companies, international
businesses could start coming under Russian influence. Rory MacFarquhar,
executive director in Goldman Sachs’ Moscow office, says Russian businesses
are breeding a new generation of smart, ambitious managers. “Western
companies could end up being run by some of these Russians,” he says. “It’s
maybe half a generation away.”                       -30-
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Additional reporting by Peter Marsh and Joanna Chung
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http://www.ft.com/cms/s/b6dc203c-7905-11db-8743-0000779e2340.html

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15. PRES YUSHCHENKO URGES GOVERNMENT TO WORK OUT A
        COMPROMISE SOLUTION TO GRAIN EXPORT BLOCKAGE

Agro Perspedctiva, Kyiv, Ukraine, Monday, November 20, 2006

KYIV – Ukrainian President Viktor Yushchenko has prompted Cabinet to work
out a compromise solution which would simultaneously assure domestic market
grain replenishment, grain export problems solving and grain market
artificial obstacles liquidation, reported President press-service.

As to press-service, Yushchenko is convinced grain export, one of important
country economic sphere, has been totally stopped due to implementation of
Cabinet decision on 2006 grain export quoting/licensing introduction.

President emphasized now Ukrainian ports are crammed with vessels loaded
with over 200,000 MT grain, while still other 1.5 mn MT grain are to be
unloaded from port elevators. Grain owners/exporters suffer multi-million
losses caused by Government/corresponding executive bodies ill-prepared
decisions.

Yushchenko made it known this situation aroused world community (incl.

somecountries Governments) serious concern about predictability of
Ukrainian authorities decisions; Ukraine faces a threat of curtailment of
further active partnership with international financial institutions/foreign
investors.

Each day Ukraine looses its image (gained with much efforts) of favorable
investments conditions country which is open for international cooperation.

President thinks all that may involve unpredictable consequences,
substantial slowdown of Ukrainian economy integration, international
cooperation narrowing, rising of tensions within bilateral relations with
countries which import Ukrainian grain as well as loosing of Ukrainian
goods traditional external sale markets.               -30-
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LINK: http://www.agroperspectiva.com/en/news/20131
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16. REVOLUTION DISCOVERED UKRAINE FOR OURSELVES
                 2nd Orange Revolution Anniversary with a bitter taste

Maksym Strikha, Ph.D. (Physics and Mathematics), writer
The Day Weekly Digest in English, Kyiv, Ukraine, Tue, Nov 21, 2006

Ukraine has celebrated one anniversary of the Maidan as an official holiday.
True, even last year it had a bitter taste due to the rift between former
allies (who turned out merely situational).

Honestly, I find it hard to imagine how they will celebrate the second
anniversary. Any event on a mass scale would play out of tune, especially
with politicians in the foreground, considering that it was because of them
that we lost probably the best chance in our history.

However, people ought to walk out on Khreshchatyk on the date, even if to
show today’s victors that we, the victors of 2004, are still there and that
we do not regret the choice we made two years ago. Also, to remind

ourselves of what Maidan was to each of us at the time.

On Nov. 21 [2004] after the polling stations closed, I was on the 1st Polish
Channel broadcasting live from the Maidan, together with Marek Siwiec,
Jerzy Buzok , and Prof. Bohdan Osadchuk.

Frankly speaking, I did not believe in our victory. I knew only too well
what forces were concentrated on the other side of the barricade, but I had
what turned out a poor idea about the potential we had on our side.

The next morning I went to the Maidan simply to prove to myself and the
world that we were not giving up struggle.

Yet by the evening, when instead of several dozen thousand I had expected I
saw several hundred thousand on the Maidan, with the numbers constantly
increasing, my mood started to improve.

When activists from a district center appeared at the party headquarters on
Tuesday after blocking a railroad with their own old Zhiguli cars, stopping
a trainload of coal miners recruited in the east, without receiving any
instructions (that day our leaders were still too confused), I realized that
defeating these people would be difficult.

Noted Western analysts are still debating whether the Orange revolution

was a revolution per se or simply a spectacular phase in the unfinished
Ukrainian revolution of 1991.

This question makes no sense to me because what really matters is the
essence, not a formal definition. The Orange revolution did more than
rediscover Ukraine for the world that had forgotten all about it.

Most importantly, this revolution discovered the Ukraine for ourselves. We
turned out capable of fighting for our rights, of making sacrifices, and
even of showing mercy to the defeated enemy.

The only bad luck the proved fatal was our political elite. It is capable of
mobilizing its energy and rising to the occasion, but then it slumps back
into narcissism, shortsightedness, incompetence, egotism, greed, and
corruption.

After the victory of the revolution I realized that the expectations were so
high that even the most ideal, professional, and virtuous team would soon
cause disillusionment.

After all, assignments to posts in Feb. 2005 did not necessarily have to be
so bad. A team could be shaped up that would at least have similar views on
the economy.

Of course, it is a shame that Yushchenko did not become a model social
standard; that Tymoshenko as prime minister became an idol for that granny
Paraska but failed to be an effective manager.

Yet I would rather discuss the actual treacherous behavior of egotistic
European elites. They would not have taken any risks by sending a positive
signal to Ukraine at the beginning of 2005, for this would be binding on no
one and the negotiating process with the EU would stretch for more than a
decade anyway. But no such signal was sent.

All told, the past two years have made us less romantic and more realistic.
We have paid a dear price for this; according to sociologists, Ukrainians
are viewing their future with greater pessimism than before the 2004
election campaign.

After experiencing bitter disappointments these ordinary Ukrainians were
prepared to give the new “professional government” a big credit of
confidence.

True, the domination of Donetsk people in all administrative institutions,
the “manual” redistribution of VAT refunds for the benefit of a certain
region (it takes only one guess to name it), along with difficulties in
starting the heating season and the expected shock from increasing prices
and tariffs can exhaust this credit much faster than Yushchenko and
Tymoshenko’s ratings faded away after being dampened in early 2005.

The question is, When and under what conditions people can again walk
out in the streets?

As a publicly active individual, I am prepared to express my stand now,

the way I did out in the street, in the late 1980s and during the Ukraine
without Kuchma campaign. What makes the Maidan special is that we
were all of us together on it.

What can cause a new Maidan and when remains an open question. One thing
is obvious to me: it is impossible today. The burden of disillusionment is
too heavy, yesterday’s idols have been discredited too much, and no new

ones have appeared.

I think that the president was right to act the way he did on the critical
days in July-August this year. He wanted a way out of an extremely
complicated situation with minimum losses (although he was also largely
responsible for that situation), compared to those urging people out on
streets and squares, calling for new elections.

At the time the democratic pro-European forces had no potential for

winning the new elections.

However, this does not mean that preconditions for the victory of those
campaigning for a just and European Ukraine will not appear in one, two or
five years.

It is important for the new generation of leaders to be in the foreground,
free from the burden of mistakes, failures, and responsibility for passing
up the excellent opportunities the Maidan offered Ukraine in Nov.-Dec. 2004.
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LINK: http://www.day.kiev.ua/172749/
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17. NO ORANGE REVOLUTION CELEBRATION IN UKRAINE
  
  Ukraine prepares to mark 2nd anniversary of the Orange Revolution quietly

Mara D. Bellaby, AP Worldstream, Kiev, Ukraine, Tue, Nov 21, 2006

KIEV – There are no orange banners hanging from the street lamps, no stage
being erected on Ukraine’s Independence Square, no festivities planned.

Quietly, quietly is how Ukraine plans to mark what has become for many in
this ex-Soviet republic a bittersweet occasion: the second anniversary
Wednesday of the Orange Revolution. Ukraine’s topsy-turvy politics have

made any official celebration of the mass protests awkward.

The man whose fraud-marred presidential victory sparked the uprising is back
in his old job as prime minister. And the Orange Revolution team is again in
opposition.

But President Viktor Yushchenko’s popularity is so low that a recent opinion
poll showed he would get less than 15 percent of the vote if the election
were held now.

The revolution’s slogans _ including “Bandits in Jail,” referring to corrupt
bureaucrats and their businessman cronies _ and its promises of a quick
embrace by NATO and the European Union turned out to be naive. Now

members of Yushchenko’s camp, too, have been accused of corruption.

Ukrainians’ quality of life has not significantly improved since the popular
uprising: salaries and pensions rose, but so, too, did energy and food
prices.

Even the hopes of shrugging off Russia’s influence seem premature; analysts
say Ukraine’s energy dependence on Moscow means the Kremlin’s shadow

will continue to advance over this nation of 47 million.

But on the eve of the anniversary, Yushchenko defended his record in a
televised interview, insisting the mass protests had brought results.

“The main thing that was achieved is something which you never feel when you
have it _ it is freedom,” Yushchenko said. “It cannot be put on a sandwich,
it cannot be seen by the size of your salary.”

Many Ukrainians, however, expected more.

“We were very romantic and idealistic,” former Prime Minister Yulia
Tymoshenko, whose glamour and fiery speeches made her the revolution’s
heroine, told The Associated Press earlier. “We believed that everything
would happen quickly and beautifully.”

Today, the only prominent orange on Independence Square is on the hats and
scarves of girls working for a Ukrainian mobile phone company, and hawkers
manning the souvenir tables have added buttons and T-shirts depicting his
2004 foe, Viktor Yanukovych to their stocks. Portraits of the unpopular
president have been dropped altogether.

We stood on the square for a month in the bitter cold and what did we get?
They’re in opposition again,” said Kiev resident Pavel Korneichuk, who said
he spent a month freezing in the protesters’ tent camp two years ago. “What
kind of victory is that? I don’t see anything to celebrate.”

Yushchenko’s party initially planned festivities on Independence Square –
the focal point of the 2004 protests – but called them off after
consultations with its “orange blood brothers,” party spokeswoman Tetyana
Mokridi said.

Instead, Our Ukraine members will mingle with whoever shows up, and
Yushchenko will host a small reception at Mariynskiy Palace.

Tymoshenko, who plans to be out of the country, has said political leaders
don’t deserve to mark the day publicly until they have fulfilled their
promises.

“Most people are disillusioned with politicians but not disillusioned with
the ideals of the Orange Revolution,” said analyst Serhiy Taran of the
International Institute of Democracy. “They realize that what they did two
years ago was the right thing, but there is still a way to go.”

The Orange Revolution began hours after the polls closed in the Nov. 21,
2004, presidential election. As the Central Election Commission began
churning out fraudulent vote counts in favor of Yanukovych, Russia’s choice,
Yushchenko – the pro-Western candidate – summoned his supporters to
Independence Square.

They flooded in. Night after night, Yushchenko and his allies rallied the
orange-bedecked crowds from a giant stage, promising them a bright,
democratic future. Musicians kept the crowds boogying through the cold.

Twelve days later, the Supreme Court declared the vote count fraudulent and
ordered a rerun _ which Yushchenko won.

But the euphoria ended as Ukrainians grew disillusioned with the power
struggles, rising gasoline and meat prices, and allegations of corruption
among a group that had promised to be squeaky clean.

By the one-year anniversary, the leaders were divided against one another, a
division that cost them dearly in the March parliamentary election.

Yanukovych’s pro-Russian party won the most votes, put together a majority
coalition and formed the Cabinet. Yanukovych – the victor of a vote
recognized as Ukraine’s freest and fairest ever – took back the premier’s
job. And thanks to Constitutional reforms, he also enjoys more power than
before.

“My heart cries over how this turned out,” said Lubov Slesarchuk, 68, who
manned a booth dedicated to providing information about the benefits of

NATO membership – a Yushchenko promise that Yanukovych has put on
hold.

But Slesarchuk said she was still hopeful. She and others say despite the
disappointments of the Orange Revolution, there is a new openness in
Ukraine: freedom of speech and an end to the monopoly on power that had
persisted since the breakup of the Soviet Union.             -30-

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18.                    UKRAINE: A REVOLUTION RECEDES

COMMENTARY: by Peter Brookes, The Conservative Voice
Kernersville, North Carolina, Monday, November 20, 2006

JUST two years after Ukraine’s Orange Revolution inspired the world’s
democratic imagination, the movement has all but collapsed – and many of the
antidemocratic politicos swept away by “people power” are making a strong
comeback.

Hopes of Kiev’s rapid integration with the West via NATO and the European
Union are fading fast in the wake of a pro-Russian power shift. But, despite
this, Ukraine has fundamentally changed for the better – perhaps
irreversibly.

Two years ago this week, crowds of 500,000 or more – many draped in the
orange of pro-West Viktor Yushenko’s Our Ukraine party – started gathering
in Kiev’s Independence Square to protest widespread voter fraud by
pro-Kremlin presidential candidate Viktor Yanukovich.

The Orange Revolution’s peaceful civil disobedience led not only to the
election’s invalidation by Ukraine’s Supreme Court, but to Yushenko’s
election as president in a December runoff.

But, two years on, Yushenko is faltering – badly. Economic growth tops 6
percent, but he hasn’t provided decisive political leadership, advanced
integration with the West or implemented a domestic-reform agenda beyond
slogans. His approval ratings hover around 10 percent.

Even such former Orange allies as nationalist firebrand Yulia Tymoshenko,
leader of the BYuT party, are going their own way, sometimes even into the
opposition in the Rada (Ukraine’s parliament).

Yanukovich’s Regions Party pounced. It soared in March’s parliamentary
elections, allowing President Yushenko’s former foe, Yanukovich, to take the
powerful prime minister’s post in a bitter political power-sharing deal
between Our Ukraine, Regions Party, the Socialists and the Communists.

Many believe that PM Yanukovich already overshadows President Yushenko

and plans to seize political power from the weakened president by picking off
his diminishing allies, filling the vacuum with the like-minded from the
Rada’s five scattered political factions.

Just last week, in a constitutionally questionable power play, Yanukovich
called Yushenko’s handpicked appointees serving as foreign and defense
ministers on the carpet, questioning their job performance, and openly
considering sacking them in the coming weeks.

Yanukovich has made ties with Russia a priority. That’s always been his
program; Russia is Ukraine’s largest trading partner, after all, and its
main supplier of natural gas and nuclear-reactor fuel. (Last January, Russia
cut off the gas – a strong signal that helped weaken the stumbling
Yushenko.)

The prime minister also hails from eastern Ukraine, where ties to next-door
Russia are historically strong. Many native Russians settled there during
the Soviet-era, and Russian – not Ukrainian – is the lingua franca.

If horse-trading in the Rada lets Yanukovich snatch the reins of political
authority from Yushenko, future Euro-Atlantic integration by Kiev goes off
the agenda. Yanukovich won’t likely be a total Russian toady but will aim
for a course that sees Kiev generously courted by both East and West.

All this will disappoint many – especially pro-West Ukrainian-Americans and
neighbors such as Poland that want Russian influence/power as distant as
possible. But the Orange Revolution’s legacy still stands.

For instance, Freedom House now rates Ukraine’s political system as “free” –
the first former Soviet state beyond the Baltics to achieve that status. The
March elections were considered to be Ukraine’s freest yet.

The media have also taken a marked turn since the Orange Revolution. The
press still isn’t completely free, but the quality/depth of reporting has
improved after years of essentially Soviet-era “what the authorities want us
to say” news.

Some outlets may still exercise self-censorship out of fear of governmental
retribution, but press freedom in Ukraine looks pretty darn good compared

to the situation in neighboring Russia and Belarus.

Moreover, politics have caught fire with the public. Foreign spin doctors –
usually Americans – fly in to advise candidates on running campaigns.
(Indeed, some pro-Orange locals complain bitterly that U.S. political
consultants helped Yanukovich come back from the political dead .)

There are frank TV debates and strong newspaper op-eds; major politicians
inspire near cult-like followings such as that of the ever-more-popular
Tymoshenko, famous for her plaited blonde locks. Most agree that democratic
institutions are firmly entrenched here for the foreseeable future.

So – though Yushenko has been a disappointment to many over the last two
years and the glory of the history-changing Pomeranchevi (the Oranges) has
faded – the Orange Revolution’s spirit lives on here.

Even though many Ukrainians are rightly concerned by recent political
developments, most would concede that the Orange Revolution has

established the floor – not the ceiling – for political freedom and democratic
institutions in Ukraine.                           -30-
————————————————————————————————
Heritage Foundation senior fellow Peter Brookes is a former deputy assistant
secretary of defense. peterbrookes@heritage.org
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LINK: http://www.theconservativevoice.com/article/20427.html
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19. UKRAINE’S NATO ACCESSION PROCESS-UKRAINIAN PERSPECTIVE

KEYNOTE SPEECH: By Volodymyr Khandohiy
Deputy Minister of Foreign Affairs of Ukraine
Ukraine’s Quest for Mature Nation Statehood Roundtable VII:
UKRAINE AND NATO MEMBERSHIP
Ronald Reagan International Trade Center
Washington DC, October 17-18, 2006

CHAIR: Ambassador of Ukraine to the United States

Oleh Shamshur

I am not going to consume too much of your time, because I think we
should concentrate more on the upcoming practical discussions. Never-
theless I would like to mention a couple of matters.

First of all, I would like to thank the organizers for staging this forum
and giving the possibility for all those who have gathered today and who
will be coming tomorrow to discuss the most pertinent issues concerning
Ukraine’s process of accession to NATO.

I would also like to mention three short points, which might be relevant,
before I introduce our keynote speaker for today.

[1] First of all, I would like to point out that this forum is timely
because it is actually quite obvious that the issue of Ukraine’s NATO
membership has become one of the most important issues, not simply of
Ukraine’s foreign policy agenda, but of Ukraine’s internal discussion.

It is important to note that it is, as much as anything else, about choosing
the model for Ukraine’s development, the shaping of Ukraine in a way we
would like to see the country for ourselves and for our children.

[2] A second layer of what we have been witnessing recently is an attempt
to forge for the first time in our history a real consensus within the
Ukrainian society, as far as NATO membership is concerned.

What is quite telling is that, more and more, we are hearing serious voices
who recognize that there is no alternative to Ukraine’s membership in NATO.

[3] The third point I would like to mention and to underscore is that, at
our stage of the internal discussion, as well as in our interaction with
international actors in this field, issues have been increasingly gone
beyond the issues of symbolism, though Ukraine’s joining NATO is indeed
a very symbolic issue.

We are concentrating more and more on the practical work, which brings
Ukraine closer to the goal of full fledged membership in the transatlantic
community of democratic nations; we also see people from all parts of
Ukraine realizing that this movement corresponds to the core national
interests of our country.

All of this is very positive.

I will stop here. I am extremely pleased, to introduce the keynote speaker
of the day: the Deputy Minister of Foreign Affairs, Volodymyr Kandohiy.

And I do it with great pleasure, because we have some history of working
together, and more specifically, on issues related to NATO.

I see in my country few individuals are more competent than he. In
addressing those issues, he served as ambassador to NATO for five years
and has been very much involved in all practical and political issues
related to Ukraine’s moving towards NATO membership. It is therefore
my pleasure to introduce Deputy Minister of Foreign Affairs of Ukraine
Kandohiy.

KEYNOTE: Deputy Foreign Minister Volodymyr Khandohiy –

Thank you very much Oleh. First of all, I would like to thank the organizers
of this conference for bringing us together for a very important issue. I
see some old friends in this audience from the Ukrainian American community
and I would like to greet them.

I would also like to greet so many of the distinguished individuals who
contributed greatly to the development of United States-Ukraine relations
that I see in the hall. I have noticed here today a number of former US
ambassadors to Ukraine; I would like to greet them in particular.

Thank you very much and a deep appreciation goes to the organizers again for
making sure that everyone was present for the conference, which is an very
important event.

For me personally, it is an important event, since, as Oleh mentioned, I
have been privileged to serve as an ambassador to NATO for more than five
years, I have been the representative of NATO in the Ministry for Foreign
Affairs, and now, as Deputy Foreign Minister, I’m likewise dealing with
issues concerning NATO-Ukraine relations. So this issue is of importance
and very deep professional interests for me as well.
   OUR RECORD OF NATO RELATIONS IS IMPRESSIVE
Looking back into the history of Ukraine’s NATO relations, one cannot but
say that we have a very profound, long history and very rich history. The
record of our relations is really impressive.

A resume with the Alliance includes twelve years experience in the favorable
Partnership for Peace program —that is since 1994, six years experience in
the framework of the NATO Ukraine Charter under a Distinctive
Partnership —since Madrid summit of 1997, and four years of practical
cooperation within the framework of the Action Plan and annual Target
Plans — since the Prague summit of 2004.

In April last year, we opened up yet another chapter in our relations though
our partnership, mainly an effort to intensify dialogue on Ukraine’s
membership aspirations and the reforms that would be necessary to achieve
it.

This format of relations was necessary for us in order to focus NATO support
on Ukraine’s reform goals, but it was also an important opportunity for the
Ukrainian authorities and indeed for the Ukrainian people to learn more
about NATO as an organization —about its goals and principles and about
Ukraine’s future place in the alliance.

The decision to launch an intensified dialogue was of crucial importance. It
was a signal that all of the NATO allies recognized Ukraine’s aspiration to
join the alliance as a legitimate one and were committed, individually and
collectively, to help Ukraine achieve that goal.

One wonders why we were so eager to attain that intensified dialogue. I can
answer that question simply by saying that we had been earlier privileged to
have special relations with NATO or relations that were distinctive.
Apparently, as it normally happens when you have special relations, it is
something that is forever.

For instance, I can draw a parallel with the so-called EU neighborhood
policy with Ukraine, which is designed for those countries that would never
be members of the European Union, since neighbors are forever.

In our view, special, distinguished relations that are specifically tailored
and designed for a particular country is something that will not bring those
countries to real membership.

That’s why the shift from the distinctive partnership —and such is the
format that is in NATO books, was very important and now we are pursuing
our relations within a new framework, quite satisfied with a fact that the
Intensified Dialogue turned into the practical process of substantive
consultations that Ukraine and NATO used to achieve a better understanding
of the requirements and expectations of each other in the context of
strategic course towards membership in the alliance.

Much has been done since April 2005. In various areas of our county’s
development, let me mention several benchmarks against which one can
judge Ukraine’s performance in reaching membership criteria.

It is clear that Ukraine made significant steps towards Euro Atlantic
standards of democratic government, government strengthening civil society,
shared values, free and fair elections. We have likewise had positive
results in defense reform and we are on the right track in the security
sector.

Here I would like to refer to very recent meeting of NATO and Ukraine
defense ministers in Tirana that was a very important one; during  that
meeting, NATO defense ministers recognized the performance of Ukraine and
the progress that Ukraine has reached in the pursuing needed changes in the
defense and security sector. Positive results have been found also in the
fight against corruption and de-shadowing of the economy.

Certainly there are some problems, drawbacks and shortcomings, for
example, in spite of some obvious steps forward, with regard to ensuring
the independence and strengthening of judicial authorities.

This area is widely recognized as one that needs further progress. At the
same time we are quite confident in our ability to bring our judicial system
in line with European standards in the nearest future.

Over the early part of last year, some negative tendencies developed in the
economic field, namely slow down of economic growth and flow of
investments.

However, lessons have been learned and there are already obvious signs the
Ukrainian government has managed to take the situation under control and
started improving it.

The latter effort consisted of the creation of the more favorable and
transparent environments for business as well as needed reforms of the tax
system. I can only say, despite all the political discussion and turbulence
that continue to go on in Ukraine, the level of the economic growth was
recently cited at a figure of 6% and that is quite an important development.

The government also has been working hard to achieve rapid WTO accession.
As we know now, the government has introduced to the parliament the
necessary draft laws and we expect those draft laws to be adopted very soon
in order to enable us to become a WTO member by the end of this year.
 NEW COALITION GOVERNMENT LED BY YANUKOVYCH
Ladies and Gentlemen, in the summer of this year a new coalition government
led by Prime Minister Viktor Yanukovych was formed in Ukraine as a result of
democratic parliamentary elections.

The country is now going through a period of active political dialogue
related mostly to the transition to a parliamentary-presidential model. Let
me touch upon recent developments in terms of Ukraine’s policy towards
NATO.

On September 14, the Prime Minister visited NATO headquarters to participate
in the NATO-Ukraine Commission meeting. Viktor Yanukovych clearly
highlighted Ukraine’s government priorities vis-a-vis the alliance.

Among them, I would like to mention the following: the strategic course
towards NATO membership remains unchanged, as does the continuation
of democratic reforms.

Ukraine is dedicated to implementing civilian and democratic control over
the military, promoting good neighborly relations, including with Russia —
which should benefit all countries in Euro Atlantic area, strengthening the
alliance’s ability to contribute to European and international security by
participation of Ukraine’s military in NATO— led peace keeping and anti
terrorist operations,  putting into effect an entire range of practical NATO
Ukraine projects and, what is extremely important,  intensifying public
awareness campaign and creation in Ukraine of a positive NATO image.
             TEMPORARILY POSTPONE UPGRADING

                            OF NATO RELATIONSHIP
At the same time, the PM’s critical point, which caught the attention of
Ukraine’s, and indeed, the international mass media, was that Ukraine’s
government proposed to temporarily postpone the issue of upgrading
NATO-Ukraine relationship up to the level of Membership Action Plan
because of low public support.

Given the fact that in February 2005, at the NATO Ukraine Brussels summit,
President Yushchenko clearly expressed Ukraine’s aspirations for NATO
membership and our strong will to join MAP, the current position of the
coalition as presented by the government remains the subject of internal
political discussion.

It should be specially noted that there are no principle divergences between
president and the prime minister on the strategic goals….I would like to
emphasis this point…..that is, on the strategic perspective goal of
Ukraine’s foreign policy and aspirations for NATO membership.

But, due to different political platforms, the two sides have different
technical visions on the time frame work on Ukraine’s readiness to join
NATO’s Membership Action Plan and on the holding of a referendum on
the issue.

There is admittedly, I would say, no unanimity as yet among the Ukraine’s
political activists with regard to the tactics in further advancing our
relationship with NATO at this juncture.

In view of this, our major challenge today is to succeed in forming a firm
consensus on Ukraine’s NATO perspectives among the Ukraine political
forces on the basis of national unity pact, the Universal, as you know.

Once this consensus is reached, the issue about joining MAP, which would
then get a new impulse to the overall discussion on NATO membership for
Ukraine, will become rather technical.

While such discussion is under way, we continue to focus particular
attention on a NATO awareness program and practical operations likewise
remain a priority.
 STRATEGY ESSENTIALLY LIES IN FOUR DIMENSIONS
Now what kind of a strategy should be adopted in this situation? In my
view the answer is lies in essentially four dimensions, namely: the
political, the Parliamentary, the public and, of course, the practical.

[1] First, the political dimension…..and that means intra Ukrainian
political dialogue. I’m convinced that the political dialogue between major
activists of Ukraine’s political process, first of all, the leading
political parties and their members and associates, should be strengthened.

Special attention should be paid, in this regard, to explaining to the
politicians the true nature of NATO as an organization, about its goals and
principles and Ukraine’s possible place in it, including possibilities which
would be opened for Ukraine.

[2] Next, the Parliamentary dimension….this means intensification of inter
Parliamentary dialogue with the members of parliaments of NATO countries,
especially from new NATO member states.

By this, I mean, Slovakia, Bulgaria, Romania, others new members. The
political forces as we all know, even from the left spectrum, managed to
find a consensus on the issue of NATO and the EU membership. This
evident example could be applied to Ukraine.

[3] Third, the public dimension…..that means, in my view, intensification
of the information policy, first and foremost. Ukraine realizes the need to
enhance significantly its information activities related to NATO-Ukraine
cooperation. For the government of Ukraine, conducting an information
campaign is the main priority regarding the Euro Atlantic integration
process.

The government of Ukraine intends to achieve transparency and understanding
about NATO within the Ukrainian society. We have started the deliberation of
a national information strategy on the issues of Euro Atlantic integration
of Ukraine. Our strategic priority is winning the minds of Ukrainians.

Interested NGOs, think tanks, journalists and experts from new NATO
member states have devised a set of measures to reinforce and strengthen
and streamline the NATO communication campaign in Ukraine. Special
attention is going to be paid to raise public awareness at the regional
level.

I would like to emphasize, in this connection, that it not a brainwashing
campaign about how good NATO is. More than anything else, it is about
bringing objective information to the population and ending old stereotypes
about NATO as an aggressive bloc. So now you can positively present
NATO and US decisions to assist Ukraine in this endeavor.

[4] Lastly, in the practical dimension…..cooperation means that, despite a
continuing political debate, Ukraine remains committed to robust and
effective partnership with the alliance.

Ukraine continues to do more and more serious work with NATO….under the
NATO-Ukraine Intensified Dialogue…..on membership questions and related
reforms, by de facto introducing NATO standards into Ukraine’s politics,
economy, security and defense.
     COMMITTED TO THE FIGHT AGAINST TERRORISM
Ukraine remains fully committed to the fight against terrorism by
participation in NATO’s Operation Active Endeavour, together with Russia.

Ukraine remains a contributor to KFOR, to NATO’s training mission in Iraq
and stands ready to contribute to NATO’s logistic support of African unity
in Darfur, Sudan. Ukraine is interested in engaging in the postwar
reconstruction in Afghanistan.

We are ready for the discussions concerning practical aspects of our
involvement in NATO  international security assistance forces, transit
agreements and provincial reconstruction teams, PRT activities.

Recent parliamentary decisions to ratify Ukraine NATO memorandum on
strategic air lift has become a major development in further advancing our
joint efforts in strengthening this decisive dimension of the alliances
capabilities.

To summarize, I would like to say, that at this moment, we are planning
the following:

[1] to strengthen and streamline political dialogue and public awareness
     campaign as number one,
[2] to continue step by step policy of “rapprochement” with the alliance,
[3] to remain a strong contributor to Euro Atlantic security and NATO
     defense,
[4] to continue a wide range reform process, including reforms in political,
     economic, defense and security areas.

This is a test that requires much work and commitment to reforms. If we are
successful in these systemic efforts, then the question of joining MAP is
just a matter of time. I am sure that Ukraine did not lose a chance to move
ahead and join the alliance.

How quickly it will be done depends first and foremost on Ukraine itself.
But US support and the support of other countries cannot be overestimated in
this regard. We hope that the NATO open door policy will remain a corner
stone of the alliance’s relationship with Ukraine and other countries for
the future.

In our meeting today and throughout the conference, we look forward to
hearing more about what we can do collectively to further enhance our
cooperation with NATO and, ultimately, Ukraine’s success is in our common
interest. Thank you for your attention.                         -30-

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20.                   NATO NEEDS TO BE LESS AMBITIOUS

COMMENTARY: By Francois Heisbourg, Financial Times
London, United Kingdom, Tuesday, November 21 2006

The summit of Nato leaders in Riga next week will be more important than

the alliance’s usual biennial summit. The decisions taken there will be vital
not only to the future activities of the Atlantic alliance but also to its
long-term prospects as a relevant organisation.

On the face of it, Nato is doing better than could have been expected in the
wake of the Iraq crisis. In recent years, the alliance has successfully
incorporated 11 new members and the attractions of eventual membership
remains a powerful motivator in the countries of the Balkans and the
Caucasus. Nato’s contribution to regional stability has been and continues
to be crucial in the former Yugoslavia.

Yet it is as clear that Nato is no longer a pivot of US strategy, as
demonstrated by its marginal treatment in America’s latest quadrennial
defence review. Indeed, the word “Nato” is all too often, in American
political and media parlance, a euphemism for the phrase “the European
allies” – which is not saying quite the same thing.

Nato’s expansion may be reaching the limits beyond which it would become

a force of regional instability rather than one of stabilisation: Ukraine is
literally split down the middle over the issue of entry to the Nato
alliance.

Going “out of area”, as in Afghanistan, has helped keep Nato in business

but in the process the alliance has become an à la carte multilateral
institution.

The Atlantic alliance has also ceased to be the principal point of
US-European consultation on the key strategic issues of our times: the rise
of China, the nuclear ambitions of Iran and North Korea and the fate of the
crisis-ridden Middle East are dealt with mainly outside the Nato framework.

In itself, this reduction of Nato’s place in the overall scheme of strategic
affairs should not be a big concern for those who live and work beyond the
confines of the Nato bureaucracy.

After all, Nato is immensely and uniquely useful in fostering
interoperability between the military forces of its members, which is key to
forming effective coalitions of forces.

In a world in which the mission determines the coalition, this ability is
more important than ever. Similarly, Nato remains key in ensuring that the
partner states of eastern Europe press on with reform of their security
sectors.

Unfortunately, Nato is not sticking to its core competencies. In a quest to
carve a greater role for itself and demonstrate global relevance, the
alliance is running the risk of overreaching itself in strategic and
political terms, with potentially dangerous consequences.

In the run-up to Riga, there has been much talk of a “Nato-bis”, or second
version, of a privileged partnership between Nato and hopefully like-minded
states in the Asia-Pacific region such as Japan and Australia. The wisdom of
this is questionable, to put it mildly, given its potential for needless
friction with a rising China.

The push for a Nato-bis is probably not intended to foster a “west against
the rest” alignment in east Asia; but that could be its inadvertent effect.
Nato should not be acting like a solution in search of a problem.

In the military sphere, there is a similar element of disregard for the
consequences of Nato’s decision to broaden the scope of its presence in
Afghanistan and to extend its war aims.

These now go well beyond the initial intention immediately after the
September 11 2001 terrorist attacks of toppling the Taliban from government
and of going after al-Qaeda leaders and operatives.

Nato’s aims of state-building and reconstruction are noble and ambitious;
but Afghanistan is a country larger than Iraq, with a history of impatience
vis-à-vis the presence of even well-intentioned foreigners.

Even if Nato’s members come up with all the soldiers and kit they have
promised, it is unlikely that the alliance can fulfil its goals, with  only
about one-third of the manpower deployed by the Soviet Union in the

same country a quarter of a century ago.

The Soviets had a no-less ambitious agenda of social and­ ­economic
modernisation and failed – not just because the Red Army tended to

behave less well than Nato’s ­soldiers.

The leaders assembled in Riga would render Nato and the west a signal
service if they were to steer clear of premature and ill-thought-out
entanglements in east Asia and if they were to lower the scope of the
alliance’s ambitions in Afghanistan – while actually giving their soldiers
there the wherewithal to fulfil a more realistic mission.     -30-
———————————————————————————————-
The writer is special adviser at the Fondation pour la Recherche
Stratégique, Paris
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LINK: http://www.ft.com/cms/s/466057da-7994-11db-90a6-0000779e2340.html
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21. UKRAINE: PARLIAMENT CHAIRMAN OLEKSANDR MOROZ
         SAYS HE VIEWS THE 1932-1933 FAMINE AS GENOCIDE
 
Ukrinform, Kyiv, Ukraine, Tuesday, November 21, 2006

KYIV – While on a Tuesday working trip to Lviv and meeting there with
officials of local self-government bodies, Verkhovna Rada Chairman Oleksandr
Moroz said the Parliament will consider 1932-1933 Famine bills, which were
initiated by President Viktor Yushchenko and the Regions Party, and will
“make a just decision.”

In this connection Oleksandr Moroz recalled his native village and noted

that he views the Famine as genocide.

As is known, on November 17 the parliamentary anti-crisis coalition, which
incorporates the Oleksandr Moroz-led Socialist Party, refused to consider
the presidential bill, which qualifies the famine as an act of genocide
against the people of Ukraine.

The Regions Party faction initiated a bill on the same day, in which the
term “genocide” was replaced with the phrase “famine, from which the
Ukrainian people suffered,” though the devastating famine was masterminded
by the Stalin totalitarian regime.

Oleksandr Moroz, who met with the officials of Ukraine’s region,
particularly sensitive to the  problem of OUN – URA veterans, promised

to objectively consider this delicate issue.

As he said, he will also initiate amendments to electoral legislation,
toward shifting from today’s proportional system to a mixed
majority-proportional one, which will allow to make local communities

duly represented and will allow electors to vote for political parties.

In the Speaker’s opinion, no individual political force must be allowed to
dominate in Ukraine. Any political force, he noted, should realize its
capability within the system of Ukraine’s state order.

It should be reminded that, according to the Aleksandr Razumkov Center’s
sociological surveys, the Socialist Party, which joined the coalition with
the Regions Party, sizeably weakened its footing in early November.

If new parliamentary elections were held right away the Socialist Party
might count on collecting a meager 2.4 percent of the national electorate’s
votes versus 5.69 percent in the March 2006 elections.          -30-
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22. THREE PARTY OF REGIONS MEMBERS PROPOSE UKRAINIAN
     PARLIAMENT DECLARE 1932-1933 FAMINE AS AN ACT OF MASS 

            DESTRUCTION OF PEOPLE BUT NOT AS A GENOCIDE

Ukrainian News Agency, Kyiv, Ukraine, Monday, November 20, 2006

KYIV – Parliamentary deputies Vladyslav Zabarskyi, Vadym Kolesnychenko,
and Orest Muts (all members of the Party of the Regions faction) have
proposed that the parliament declare the 1932-1933 famine in Ukraine as an
act of mass destruction of people.

They made this proposal in the draft law No. 2470-1 entitled ‘On the
1932-1933 Famine in Ukraine,’ which was registered with the parliament on
November 17.

In particular, this draft law proposes declaring the 1932-1933 famine as an
act of mass destruction of people and a national tragedy for the Ukrainian
people and establishing that public denial of the famine amounts to an act
of outrage against the memories of the victims of the famine and undermining
the dignity of the Ukrainian people.

Moreover, the deputies are proposing that the parliament make it the duty of
the government and local self-government organs to immortalize the memory
of the victims of the famine.

The draft law also proposes designating the Ukrainian Institute of National
Memory as the central executive government organ in charge of realization of
state policy in the area of restoration and preservation of national memory
and to guaranteeing state support for research into the famine.

Moreover, the deputies are proposing directing the Cabinet of Ministers and
the Kyiv municipal administration to facilitate construction of a memorial
complex in Kyiv to mark the 75th anniversary of the famine.

As Ukrainian News earlier reported, President Viktor Yuschenko submitted
the draft law No. 2470 entitled ‘On the 1932-1933 Famine in Ukraine’ to the
parliament in early November for consideration.

In his draft law, Yuschenko proposed declaring the 1932-1933 famine in
Ukraine as an act of genocide against Ukrainians. The parliaments of 10
countries have recognized the 1932-1933 famine in Ukraine as an act of
genocide against Ukrainians.                         -30-
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23. UKRAINE WENT THROUGH HELL – THIS WAS THE GENOCIDE

PERSONAL COMMENTARY: By Natalia Dziubenko-Mace
The Day Weekly Digest, Kyiv, Ukraine, Tuesday, November 21, 2006

As I touch the little box shrubs, violets, and marigolds and look at the
surprisingly living photo of a smiling man, which is attached near the cross
on the grave of my late husband, in spite of the never-ending pain and
bitterness I still feel a shimmer of hope deep in my heart: a sudden rain
has given way to warm sunshine and the flowers brighten – this must be a
sign from him.

The snow is knee-deep, but I stand looking for evergreen wreaths decorated
with the guilder rose. Somebody has tenderly laid a white rose and someone
else, a handful of rye.

Someone, perhaps one of his female students, has strung multicolored ribbons
on the cross. Suddenly I come across a beautifully crafted pot with forget-
me-nots.

Fall, spring, summer, and winter, the winds, sunrises, and sunsets pass
without you, Jim, without you.

But nothing has ended, everything is just beginning for you and me in some
different dimension, under a different sun and moon, as long as people will
remember and keep coming and bowing to you.

Meanwhile, Baikova Hill is growing with marble and granite monuments. In the
past 18 months I have been feeling some unthinkable guilt about you, Jim,
because no matter how highly I value this scrap of ground, it is still our
Ukrainian tradition to put up a commemorative sign that will forever bear
the name of one’s beloved.

Thanks to the sculptor Volodymyr Koren, there was one more flash of granite
energy on Baikova Hill at the place where my Jim, our Professor James Mace,
is resting.

This tombstone was nurtured for so long and so arduously, was created out of
such moral and financial torments and in such inhumane solitude that when I
finally saw it, my heart contracted in pain, because now almost every
periodical mentions his name and his publications.

The newspaper Den/The Day published the book Day and Eternity of James
Mace; the National University of Kyiv-Mohyla Academy is studying his
archives and library; and through the efforts of the president and the
government one more part of his priceless archive on the Holodomor and
genocide will at last be published in Ukraine.

Somehow I feel that we will manage to surmount the formal obstacles, such
as customs clearance, transportation, and the sorting process.

His literary legacy will inevitably produce new young scholars and thinkers
for whom the history of their native land will be a matter of honor and
conscience. The new historians will find answers to the thorny questions of
today.

James Mace was posthumously awarded the Order of Yaroslav the Wise.
There have been many offers from publishers, which I did not exactly
hurry to accept.

Everything else remained in the background until I managed to fulfill my
duty as a widow and beautify the gravesite. No one else, no state, and no
sponsor can do this, for it is a private matter.

Many conferences, symposiums, and campaigns, such as “Light a Candle!”
are taking place, and the nations of the world are gradually beginning to
understand that Ukraine lived through the hell of genocide.

After James’s death someone said that Ukraine had already overcome all the
medical, psychological, and sociopolitical consequences of the Holodomor.
Meanwhile, the communists are issuing calls simply to forget it because, as
they claim, it is a dubious fact of bygone days.

Here I would like to draw the readers’ attention to James’s article “Ukraine
as a Post-Genocidal Society,” in which he established a cause-and-effect
relationship between almost all our failures and Ukraine’s nationwide
cataclysms of the 1930s.

This article also applies to the present, and I believe that the president
of Ukraine will succeed in getting the UN to recognize the 1932-1933
manmade famine as genocide, as a crime against humanity that is not
subject to any statutes of limitation.

And even though there will be no Stalins, Molotovs, Kaganoviches, and
Khataeviches, and the never-ending numbers of other barbarians and
vandals in the prisoner’s dock, there is bound to be a trial of the system
and ideology that defiled the name of the Lord on earth.

I tremblingly touch the granite tombstone. There is no more room here for
flowers. Only green grass spirals its way around the meteorite-like bust.

This stone dropped like a bitter tear from the sky. There is nothing more
depressing than this petrifaction and inevitability. There is only a name,
and years, and these words:

Farewell, beloved person, and forgive us.
I flow to you as a tear.
Ukraine, light an eternal candle for widows, and orphans!
Light a candle!
————————————————————————————————
LINK: http://www.day.kiev.ua/172751/
————————————————————————————————-

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
24.  REQUIEM FOR VICTIMS OF 1932 – 1933 FAMINE HELD IN NYC

Natalia Bukuvch, Ukrinform, Kyiv, Ukraine, Monday, November 20, 2006

WASHINGTON, DC, – The St Patrick’s Cathedral, NYC hosted a requiem

for victims of the 1932 – 1933 Famine in Ukraine on occasion of the Famine’s
73rd anniversary, Ukrinform’s correspondent was told in the Ukrainian
Embassy in the USA.

The requiem was attended by President of the Ukrainian Congress Committee
Mykhailo Savkiv, Head of the Ukrainian Orthodox Church in the USA,
Metropolitan Kostiantyn and many other Ukrainian and American public
representatives.

An address by US President George Bush was read out during the ecumenical
memorial service.

Ukrainian Ambassador to the USA Oleh Shamshur expressed sincere gratitude

to the Congress and the President of the United States for the allotment of a
land plot for erection of a monument to victims of the 1932 – 1933 Famine in
Ukraine.                                              -30-            
————————————————————————————————
LINK: http://www.day.kiev.ua/172763/
————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
25.                         NOT ENOUGH INFORMATION
       Absence of mechanisms of delivering important information to society

By Viktoria Herasymchuk, The Day Weekly Digest #37

Kyiv, Ukraine, Tuesday, 21 November 2006 

The majority of the adult population in Ukraine – more than 94 percent –
have heard or read about the famine of 1932 – 1933. The best informed people
are residents of the country’s central region (15 percent), somewhat less
informed are the residents of eastern Ukraine (10 percent) and southern
Ukraine (9 percent).

Based on information that they have heard or read about the famine of 1932 –
1933, more than one-third of Ukrainians believe that the famine was caused
mainly by the actions of the Soviet government, while only 12 percent
consider that the famine was mainly caused by natural phenomena.

One-quarter of those who believe that the Holodomor was a deliberate action
think that it was specifically aimed against Ukrainians.

These are the results of a survey conducted by the Kyiv International
Sociology Institute (KMIS), entitled “The Ukrainian Population’s Thoughts on
the Holodomor of 1932 – 1933: The Dynamics of Xenophobia in Ukraine in
1994 – 2006.”

This material was prepared on the basis of data from a nationwide poll among
Ukraine’s adult population, which was conducted by KMIS during the period

of Sept. 8 – 14, 2006.

A total of 2,015 respondents aged 18 and over, who live in villages,
urban-type settlements, towns, and cities in all oblasts and the Crimea, as
well as in Kyiv, were interviewed.

Approximately two-thirds of the respondents (61 percent), who said that the
government organized the Holodomor of 1932 – 1933 deliberately, believe that
it targeted all the residents of Ukraine, irrespective of their nationality.

More residents of the western region consider that the Holodomor was aimed
specifically against Ukrainians (30 percent), while only 13 percent of
respondents from the central region think this; from eastern Ukraine (8
percent) and the southern region (7 percent).

Among the different age groups, the proportion of people who believe that
the government organized the famine of 1932 – 1933 deliberately against
Ukrainians is relatively the smallest among the oldest citizens, aged 60 and
over (one in eight people, or 12.5 percent).

The researchers explain these discrepancies in the population’s
interpretation of the Holodomor’s “direction” by the vagueness of scholars
and politicians. Historians give different versions of this historical
event, while politicians muddy the issue.

“These figures testify to the absence of mechanisms of delivering important
information to society,” says the historian and deputy director of the
Institute of Ukrainian History Stanislav Kulchytsky. “The government has

not provided scholars with such a mechanism.”

At the same time, 69 percent of Ukrainians who acknowledge that the Soviet
government deliberately engineered the Holodomor is not a bad result. This
historical memory has struggled through a curtain of silence.

“We have not managed to convince the population that the Holodomor of

1932-1933 was a genocide aimed specifically against Ukrainians,” says Dr.
Volodymyr Paniotto, the director general of KMIS and a professor of
sociology at National University Kyiv-Mohyla Academy. “But this shared
grief should have consolidated us…I hope that these figures will give
politicians something to think about.”

The spread of xenophobic moods is also not normal, Paniotto adds. The level
of xenophobia rose between 1994 and 2001. True, the situation stabilized in
2002 – 2003, but it rose again during the 2004 elections, and in 2006 it
rose again to the 2004 level.

“One can hypothesize that if there is no increase in international tensions,
the level of xenophobia will drop to the 2003 level,” the Ukrainian
sociology expert said.

The following statistics are shameful, but they must be reported. Ukraine’s
population is least biased in its attitude to Ukrainian-speaking Ukrainians
(although 0.2 percent said that they would never allow Ukrainian-speaking
Ukrainians into Ukraine); next come Russian-speaking Ukrainians, then
Russians, and Belarusians.

Next, at a certain distance come Jews, Poles, Frenchmen, Canadians,
Americans, and Romanians. Ukrainians trust blacks and gypsies (these terms
were used in the research) least: 40.7 percent of Ukrainians would not allow
gypsies into the country, while 18 percent would not allow blacks.

Scholars explain this attitude to dark-skinned people by the fear of
strangers, which is actually the definition of xenophobia. It is
understandable that elderly people from the country’s remotest areas have
the most fear of blacks.

Generally, the older the respondent the higher the level of xenophobia. But
the higher a respondent’s educational level, the fewer fears and less
rejection there are. The level of xenophobia is higher in villages than in
cities, and the bigger the city the lower the level of xenophobia.

The main factors that influence the level of xenophobia, scholars think, are
the country’s economic situation, wars and conflicts in different regions of
the world, which are widely highlighted in the mass media, and the use of
materials aimed at the separation rather than consolidation of different
linguistic-ethnic groups for purposes of agitation during Ukraine’s
presidential elections.                                -30-
———————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
26.        A HAUNTING REMINDER OF THE SOVIET PAST

EDITORIAL: The Independent, London, UK, Tue, Nov 21, 2006

A former Russian spy is fighting for his life in a London hospital after
being poisoned with the lethal substance thallium. Pictures published
yesterday showed Alexander Litvinenko, who was in the prime of life only

two weeks ago, a shadow of his former self. Yesterday he was returned to
intensive care after his condition worsened.

There is no reason to beat about the bush. This attempted murder, for that
is surely what it is, bears all the hallmarks of the Russian security
services, the FSB. Thallium, without taste and fatal in even tiny
quantities, is the secret services’ drug of choice.

Its last known use was against the Ukrainian opposition politician, Viktor
Yushchenko, when he was standing for the presidency. In the case of Mr
Litvinenko, the Kremlin had plenty of reasons for wanting the troublesome
former FSB lieutenant colonel out of the way for good.

Mr Litvinenko was indicted three times for treason in Russia in the late
Nineties. He was twice cleared, and defected to Britain where he was granted
political asylum before the last case against him was heard in absentia. He
used what he presumably felt was the safety of Britain to expose the black
arts of the FSB.

He wrote a book, which was sponsored by the former oligarch who is probably
the Kremlin’s chief bte noir in London, Boris Berezovsky. And last month he
publicly held President Putin responsible for the murder of the
investigative journalist Anna Politkovskaya.

Neither Mr Litvinenko’s high public profile, nor the associates he chose in
exile, were calculated to endear him either to the Russian authorities or to
his former colleagues. He was clearly a man who lived dangerously, eschewing
the judicious silence that might have kept him out of harm’s way.

Like Ms Politkovskaya, he made no secret of his hatred of Mr Putin and held
it a point of principle to speak his mind. Despite the Kremlin’s
characteristically tardy denial yesterday, the evidence points in that
direction. That this might be a freelance operation by aggrieved former
colleagues is not necessarily more reassuring. What would this say about the
reach of Mr Putin’s authority in Russia?

This case has two other profoundly disturbing aspects. The first is that
Russia’s leaders – or the secret services acting on their behalf – appear to
be returning to venal Soviet ways. Those who voice dissent risk being
silenced’ another critic of the Chechen war was sent to prison yesterday.

Those who do not heed initial warnings may reasonably fear for their lives.
This is very far from being the free and democratic Russia that we hoped
would rise from the wreckage of communism.

The second is the evidence that it supplies of increasingly brazen FSB
activity abroad, targeted specifically on the emigrant community. Accounts
differ about precisely how or where Mr Litvinenko was poisoned, but it
appears that it was at a meeting, probably with one or more former
colleagues, in the very centre of London.

Our capital has become a centre for Russians living working or just visiting
abroad. Every strand of Russian politics and society is represented here. It
is perhaps not surprising that in this relatively relaxed and cosmopolitan
atmosphere, foreign security services feel free to go about their business
and murderous plots maybe hatched.

Until now, with the exception of the high-profile super-rich, such as Roman
Abramovich, the Russians have not drawn attention to themselves. The
Litvinenko poisoning will bring unwelcome scrutiny. But it should also alert
our police and security services to lurking danger.

If those granted refuge here obey our laws, we have an obligation to extend
to them the full protection of the law. Alexander Litvinenko deserved to
have his fears taken more seriously than they were.          -30-
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
27.                                 POLITICAL POISON
A coincidence that enemies of Vladimir Putin keep ingesting toxic substances?

EDITORIAL: The Washington Post
Washington, D.C.,Tuesday, Nov 21, 2006; Page A26

FOR THE PAST 15 years it has been commonly assumed that Russian
leaders gave up the Soviet practice of murdering political dissidents,
inside and outside of the country.

Maybe not. British authorities say they are investigating the apparent
poisoning of Alexander Litvinenko, an outspoken critic of Russian President
Vladimir Putin, who is fighting for his life in a London hospital after
ingesting highly toxic thallium.

A former agent of the KGB secret service and its successor, the Federal
Security Service (FSB), who sought asylum in Britain six years ago, Mr.
Litvinenko had alleged that the agency maintained a secret poisons
laboratory.

Along with many others, he also charged that the Kremlin was behind the
2004 poisoning of Ukraine’s pro-Western president, Viktor Yushchenko.

There’s no concrete evidence as yet that the FSB or Mr. Putin is behind the
poison attacks — but there is plenty of reason for suspicion. Mr.
Litvinenko was investigating the recent murder of the country’s best known
opposition journalist, Anna Politkovskaya, who was gunned down in her
apartment building on Oct. 7.

She, too, was hospitalized in 2004 and said she believed she had been
poisoned. Ms. Politkovskaya’s editor at the newspaper Novaya Gazeta,

Yuri Shchekochikhin, died after a suspected poisoning three years ago.

No one has been arrested in these murders, but Mr. Putin publicly disparaged
Ms. Politkovskaya while implausibly charging that his political enemies were
somehow behind her death.

Former colleagues of Mr. Putin in the KGB don’t doubt who is responsible.
One, Oleg Kalugin, pointed out that the president pushed the Russian
parliament to authorize the secret service to take action against
“terrorists” outside the country.

Another, Oleg Gordievsky, the former KGB chief in Britain, told the Times
of London that he believed the attack was “state-sponsored” and was carried
out by another former Russian agent.

We trust that the British authorities will vigorously investigate the attack
on Mr. Litvinenko — who is now a British citizen — and that Prime Minister
Tony Blair will take seriously the possibility that a colleague in the Group
of Eight sanctioned a political murder attempt in London.

While Mr. Litvinenko’s story was emerging over the weekend, President Bush
was pictured exchanging jollities with his “friend Vladimir” at a summit in
Vietnam.

Does Mr. Bush regret having given so much support to a leader who has
dismantled his country’s nascent democracy and whose opponents keep
turning up in hospitals and morgues? If so, he’s keeping his own secret.
—————————————————————————————————–
http://www.washingtonpost.com/wp-dyn/content/article/2006/11/20/AR2006112001135.html
——————————————————————————————————————-
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AUR#791 Nov 20 – Day of Memory Nov 25 for Victims of the Holodomor 1932-33 & Other Political Repressions Against the People of Ukraine

=========================================================
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       

 
DAY OF MEMORY: SATURDAY, NOVEMBER 25 
      For the Victims of the Holodomor 1932-1933 [Induced Starvation,
            Death for Millions, Genocide] and other Political Repressions
                                       Against the People of Ukraine 
                        
ACTION UKRAINE REPORT – AUR – Number 791
Mr. E. Morgan Williams, Publisher and Editor  
PUBLISHED IN KYIV, UKRAINE, MONDAY, NOVEMBER 20, 2006 
           –——-  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. PRESIDENT YUSHCHENKO PROPOSES PARLIAMENT RECOGNIZE
  1932-1933 HOLODOMOR AS GENOCIDE OF THE UKRAINIAN PEOPLE
Ukrainian News Agency, Kyiv, Ukraine, Thu, November 2, 2006

2.       DRAFT BILL ON THE HOLODOMOR 1932-1933 IN UKRAINE
       SUBMITTED BY THE PRESIDENT OF UKRAINE TO THE RADA
Press office of President Victor Yushchenko (in Ukrainian)
Kyiv, Ukraine, Thursday, November 2, 2006

Action Ukraine Report (AUR) #791, Article 2 (in English)
Kyiv, Ukraine, Sunday, November 19, 2006
      He also suggests punishing production, distribution and possession of
                        materials denying the famine with the same fine.
Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 2, 2006

4.                                      FAMINES IN UKRAINE:
       INDUCED STARVATION, DEATH FOR MILLIONS, GENOCIDE
By Roman Serbyn, Professor Emeritus
Universite du Quebec a Montreal, Montreal, Canada
Action Ukraine Report (AUR), #791, Article 4

Kyiv, Ukraine, D.C., Sunday, November 19, 2006

5.      UKRAINE’S FOREIGN AFFAIRS MINISTRY SURPRISED BY

Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 2, 2006

6.    PRESIDENTIAL BILL ON 1932-1933 FAMINE NEEDS REVISION,
                       LEADER OF REGIONS PARTY BELIEVES

     President’s bill restricts the Constitution’s right on freedom of expression.
Ukrinform, Kyiv, Ukraine, Wed, November 8, 2006

7LANGUAGE AND FAMINE: RUSSIA’S FOREIGN MINISTER SERGEI
       LAVROV IDENTIFIES THE TWO MOST ACUTE ISSUES IN KIEV

    Attempts made to portray the famine as “ethnocide of the Ukrainian people”
By Svetlana Stepanenko, Vremya Novostei, No. 206
Moscow, Russia, Thursday, November 9, 2006

8. PRESIDENTIAL SECRETARIAT PLEASED PARTY OF REGIONS TO
     DISCUSS RECOGNITION OF UKRAINIAN FAMINE AS GENOCIDE

      Aim is to “restore historical justice and to avoid such tragedies in future.”
Interfax-Ukraine, Kyiv, Ukraine, Thursday, November 9, 2006

9.      65% OF UKRAINIANS POLLED BELIEVE 1932-1933 FAMINE
                  WAS CAUSED BY ACTIONS OF AUTHORITIES
     11.4% expressed the belief famine was caused by a natural phenomenon
Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 9, 2006

10. UKRAINIAN PRESIDENT WRITES LETTER TO GEORGE BUSH
         THANKING HIM FOR SIGNING LAW TO GIVE UKRAINE A
  PLACE IN WASHINGTON TO BUILD A HOLODOMOR MONUMENT
Press Office of the President of Ukraine
Kyiv, Ukraine, Friday, November 10, 2006

11.    RUSSIA INITIATES FORMATION OF UKRAINIAN-RUSSIAN
        COMMISION ON STUDYING 1932-1933 FAMINE IN UKRAINE
UNIAN, Kyiv, Ukraine, Friday, 10 November, 2006

12.   PRES SURPRISED AT RUSSIA’S LACK OF UNDERSTANDING
            OF IMPORTANCE OF RECOGNIZING HOLODOMOR OF

                  1932-1933 AS GENOCIDE AGAINST UKRAINIANS
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

13. UKRAINAIN REPUBLICAN PARTY CALLS ON YUSHCHENKO TO
       ISSUE A DECREE TO ABOLISH SYMBOLS OF SOVIET REGIME
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

14IVANO-FRANKIVSK REGIONAL COUNCIL CALLS ON RADA TO
      RECOGNIZE 1932-1933 HOLODOMOR AS AN ACT OF GENOCIDE
                           AGAINST THE PEOPLE OF UKRAINE

  Extreme public, political, historic and moral importance for Ukrainian society 
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

15.        RUSSIA: NO REASONS TO REGARD 1932-1933 FAMINE IN
                                 UKRAINE AS ETHNIC GENOCIDE

                   Soviet policy was not based on nationalities principle
Itar-Tass, Moscow, Russia, Monday, November 13, 2006

16.    RUSSIA AGAINST POLITICIZING UKRAINIAN FAMINE ISSUE
                        SAYS MINISTRY OF FOREIGN AFFAIRS
Interfax, Moscow, Russia, Tuesday, November 14, 2006

17   RUSSIAN FOREIGN MINISTRY REGARDS HOLODOMOR OF 

          There are no reasons for interpreting this event as ethnic Genocide
Ukrainian News Service, Kyiv, Ukraine, Tuesday, November 14, 2006

18.      UKRAINIAN FOREIGN MINISTRY WELCOMES MOSCOW’S

                              1932-1933 FAMINE AS GENOCIDE
Interfax-Ukraine, Kyiv, Ukraine, Tuesday, November 14, 2006

19UKRAINIAN FOREIGN MINISTER COUNTS KEY DISAGREEMENTS
   WITH RUSSIA: FAMINE, LANGUAGE, BLACK SEA FLEET, AZOV SEA
Interfax Ukraine News, Kyiv, Ukraine, Wed, November 15, 2006

20.   PRES YUSHCHENKO URGES GOVERNORS TO HOLD EVENTS

      AND VICTIMS OF POLITICAL REPRESSIONS ON NOVEMBER 25
Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 16, 2006
 
               FAMINE AS GEOCIDE AGAINST UKRAINIAN PEOPLE
Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 16, 2006
 
                         Ukrainians should find in themselves the bravery

     to declare that the nation was the victim of a terrible crime – the crime of
       genocide – that should never be repeated and convince others of this.
Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 16, 2006
 
                          The author of this evil act was Stalin’s regime
Associated Press (AP), Kiev, Ukraine, Thursday, Nov 16, 2006
 
24TYMOSHENKO BLOC SUPPORTS RECOGNITION OF HOLODOMOR
            AS AN ACT OF GENOCIDE AGAINST UKRAINIAN NATION
      BYUT leader complains Pres Yushchenko not to be present to support bill
ForUm, Kyiv, Ukraine, Friday, November 17, 2006
 
   Proposed dropping genocide, calling 1932-33 Great Famine a tragedy instead
By Natasha Lisova, Associated Press Writer
Kiev, Ukraine, Friday, November 17, 2006
 
26UKRAINIAN MEMBERS OF PARLIAMENT DECIDED TO POSTPONE
      INDEFINITELY BILL TO RECOGNIZE 1930’S FAMINE AS GENOCIDE
TV 5 Kanal, Kiev, in Ukrainian 1300 gmt 17 Nov 06
BBC Monitoring Service, United Kingdom, Friday, Nov 17, 2006
 
                     Working on new draft of the Holodomor of 1932-1933

FORUM, Kyiv, Ukraine, Friday, November 17, 2006
 
                   Special commemorative event on Tuesday, Nov. 21, 2006
The Ukrainian Weekly, Parsippany, NY, Sunday, Nov 12, 2006
 
29                  BUILD THE HOLODOMOR COMPLEX NOW
   Holodomor – induced starvation, death for millions, genocide of 1932-1933
OP-ED:
By Morgan Williams
Kyiv Post, Kyiv, Ukraine, Thursday, Sep 07 2006
 
30.                 THE FOLLY OF JAILING GENOCIDE DENIERS
         Democracy’s test: Do we tolerate a view that it is thoroughly repulsive?
COMMENTARY:
By Garin K. Hovannisian
The Christian Science Monitor, Boston, MA, Mon, Nov 6, 2006
========================================================
1. PRESIDENT YUSHCHENKO PROPOSES PARLIAMENT RECOGNIZE
  1932-1933 HOLODOMOR AS GENOCIDE OF THE UKRAINIAN PEOPLE

Ukrainian News Agency, Kyiv, Ukraine, Thu, November 2, 2006

KYIV – Ukrainian President Viktor Yuschenko proposes the Verkhovna
Rada [parliament] recognize the Holodomor of 1932-1933 as a Genocide
against the Ukrainian people.

This proposal is included in a draft bill ‘On The Holodomor of 1932-1933
in Ukraine,’ the text of which Ukrainian News has obtained.

“The Holodomor of 1932-1933 in Ukraine is a Genocide of the Ukrainian
people”, the first article of the bill states. By this, to deny publicly the
Holodomor of 1932-1933 means desecration of the memory for the five
million victims and humiliation of the Ukrainian nation’s dignity.

With this bill Yuschenko proposes to oblige power bodies and local
self-governments to participate in the renewing and keeping the national
memory of Ukrainians, promote the nation’s consolidation and also to
disseminate information about the Holodomor and study this event.

The authorities also have to take part in immortalizing the memory of the
tragedy victims, particularly, by raising monuments and memorial signs to
them. They also must provide access to archives and other materials
related to the Holodomor.

Yuschenko proposes to appoint the Ukrainian Institute of the National
Memory, which is funded by the state budget as a designated authority of
the governmental policy in this sphere. By this the Cabinet of Ministers has
to create environment for it to work.

The President also proposes that the state would ensure conditions for
conducting investigations and activities on immortalizing memory of the
Holodomor victims basing on the governmental program.

This program is approved by the Cabinet of ministers and is submitted by
the Institute Of The National Memory. Money for this program have to be
provided from the budget.

Yuschenko introduced this draft bill in order to revere the Holodomor
victims’ memory and in honor of those who survived this tragedy.

Yuschenko also thinks that it is a moral duty and a necessary act of
restoring historic justice.

As Ukrainian News already reported, the Holodomor of 1932-1933 has

been recognized as an act of genocide against the Ukrainians by the
parliaments of 10 countries.                           -30-
————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
2.  DRAFT BILL ON THE HOLODOMOR 1932-1933 IN UKRAINE
   SUBMITTED BY THE PRESIDENT OF UKRAINE TO THE RADA

Press office of President Victor Yushchenko
Kyiv, Ukraine, Thursday, November 2, 2006
Action Ukraine Report (AUR) #791, Article 2 (in English)
Kyiv, Ukraine, Sunday, November 19, 2006

KYIV – According to Article 93 of the Constitution of Ukraine, Victor
Yushchenko has submitted a bill on the 1932-1933 Holodomor in Ukraine
to parliament and demanded that parliamentarians pass it without delay.

The President commissioned Ihor Yukhnovsky, Acting Head of the
Ukrainian Institute of National Memory, to present this bill at a plenary
session of the Verkhovna Rada.                   -30-
————————————————————————————————
Draft Bill
Submitted by the President of Ukraine to the
Law of Ukraine
On the Holodomor 1932-1933 in Ukraine
The Verkhovna Rada of Ukraine [November 2, 2006],

Honoring the memory of millions of fellow countrymen who became
victims of the 1932-1933 Holodomor in Ukraine and its effects;
Honoring all citizens that survived this horrible tragedy in the history of
the Ukrainian people;

Being aware of the moral responsibility to former and future generations of
Ukrainians and recognizing the necessity of restoring historical justice, of
solidifying in society an intolerance towards any form of violence;

Noting that the tragedy of the 1932-1933 Holodomor in Ukraine officially
was denied by the USSR government over the course of many decades;

Condemning the criminal acts of the USSR totalitarian regime aimed at the
Holodomor’s organization, which resulted in  millions of people, the social
foundations of the Ukrainian nation, her age-old traditions, spiritual
culture and ethnic identity being destroyed;

Highly valuing the solidarity and support of the international community in
condemning the 1932-1933 Holodomor in Ukraine that is reflected in
parliamentary acts of Australia, the Republic of Argentina, Georgia, the
Republic of Estonia, the Republic of Italy, Canada, the Republic of
Lithuania, the Republic of Poland, the United States of America, the
Republic of Hungary, and also in the combined statement circulated as an
official document of the 58th session of the General Assembly of the UN on
the occasion of the 70th anniversary of the Holodomor-Great Famine of
1932-1933 in Ukraine, signed by the Republic of Argentina, the Republic of
Azerbaijan, the People’s Republic of Bangladesh, the Republic of Belarus,
the Republic of Benin, the Republic of Bosnia and Herzegovina, the Republic
of Guatemala, Georgia, the Arab Republic of Egypt, the Islamic Republic of
Iran, the Republic of Kazakhstan, Canada, the State of Qatar, the Republic
of Kyrgyzia, the State of Kuwait, the Republic of Macedonia, Mongolia, the
Republic of Nauru, the Kingdom of Nepal, the United Arab Emirates, the
Islamic Republic of Pakistan, the Republic of Korea, the Republic of
Moldova, the Russian Federation, the Kingdom of Saudi Arabia, the Arab
Republic of Syria, the United States of America, the Republic of Sudan, the
Republic of Tajikistan, Turkmenistan, the Democratic Republic of
Timor-Leste, the Republic of Uzbekistan, Ukraine and Jamaica, and also
supported by Australia, the State of Israel, the Republic of Serbia and
Montenegro and the 25 member-states of the European Union;

Taking into consideration the Recommendations of parliamentary hearings
concerning honoring the memory of the victims of the 1932-1933 Holodomor
approved by the Resolution of the Verkhovna Rada of Ukraine of March 6, 2003
No. 607-IV and the Appeal to the Ukrainian people of the participants of a
special session of the Verkhovna Rada of Ukraine of May 14, 2003, which was
approved by the Resolution of the Verkhovna Rada of Ukraine of May 15, 2003
No. 789-IV, in which the Holodomor is recognized as an act of genocide of
the Ukrainian people, and also   taking into consideration the Appeal of the
IV World Forum of the Ukrainians of August 20, 2006 to the President of
Ukraine, Cabinet of Ministers and the Verkhovna Rada of Ukraine, numerous
appeals of the community regarding recognition of the Holodomor 1932-1933
in Ukraine as a genocide;

Recognizing the 1932-1933 Holodomor in Ukraine according to the Convention
of December 9, 1948 on the prevention of the crime of genocide and the
punishment of it as an intentional act of mass destruction of people,
enacts this Law.

Article 1. The 1932-1933 Holodomor in Ukraine is genocide of the Ukrainian
nation.

Article 2. Public denial of the 1932-1933 Holodomor in Ukraine is an insult
to the memory of millions of victims of the Holodomor, a humiliation of the
dignity of the Ukrainian people and is forbidden.

Article 3. State bodies of power and local bodies of self-governance
according to their authority are obligated to:

Take part in the formation and realization of state policies in the areas of
renewing and preserving the national memory of the Ukrainian people;

Facilitate the consolidation and development of the Ukrainian nation, her
historical consciousness and culture, the dissemination of information about
the 1932-1933 Holodomor in Ukraine among Ukrainian citizens and the global
community, to ensure study of the tragedy of the Holodomor in educational
institutions of Ukraine;

Take measures to memorialize the memory of victims of the 1932-1933
Holodomor in Ukraine, including building memorials and mounting of
memorial signs to the victims of the Holodomor;

Ensure by the established order access to archived and other materials on
issues that concern the Holodomor to research and civil establishments and
organizations, scholars, individual citizens that research issues of the
1932-1933 Holodomor in Ukraine and its effects.

Article 4. The Ukrainian Institute of Memory is a specially authorized
central organ of executive power in the sphere of restoring and preserving
national memory.

The Cabinet of Ministers of Ukraine ensures the creation of conditions for
the proper functioning of the Ukrainian Institute of National Memory.
The Ukrainian Institute of National Memory is supported by funding from
the State budget of Ukraine.

Article 5. The State provides the conditions for carrying out research and
executing activities related to the memorializing of the memory of the
victims of the 1932-1933 Holodomor in Ukraine on the basis of state
programs that are confirmed by the Cabinet of Ministers of Ukraine and
submitted by the Ukrainian Institute of National Memory. Funds for
carrying out this program are allocated yearly in the State budget of
Ukraine.

Article 6. Closing principles

1. This law is in effect from the day of its publication.

2. To incorporate such changes into the Code of Ukraine on Administrative
Offences (News of the Verkhovna Rada of the URSR (1984), addendum to
No.  51, article  1122):

1) To supplement chapter 14 with article 1722 to this effect:

“Article 1722. Public denial of the 1932-1933 Holodomor in Ukraine
Public denial of the 1932-1933 Holodomor in Ukraine, and also preparation,
distribution or possession with the intent to distribute materials with such
a denial-

Carries a fine of 10-15 minimum-wage [monthly] salaries before taxes.

Actions committed by the mass media, as foreseen in the first part of this
article-

Carry the imposition of a fine from 20-30 minimum-wage [monthly] salaries
before taxes;  

2)  To replace the figures “173-173 (2) in article 221, the first part of
article 255 and the first part of article 294 with “172 (2)-173(2)”.

To supplement the second portion of article 268 after the number a

“160 (2) with the figures “172 (2).”

3. The Cabinet of Ministers of Ukraine and the Kyiv City State
Administration are to ensure in the appointed order construction of a
Memorial to the memory of the victims of the Holodomors in Ukraine
before the 75th anniversaries of the 1932-1933 Holodomor in Ukraine.”
———————————————————————————————
NOTE:  Translation of this draft bill from the original Ukrainian into
English by Heather Fernuik for the Action Ukraine Report (AUR).
English translation can be used with proper credits to the AUR.
————————————————————————————————
LINK:  http://www.president.gov.ua/en/news/data/1_11463.html
LINK:  http://www.president.gov.ua/done_img/files/pr_golod.html   
————————————————————————————————-

FOOTNOTE:  The Parliament of Ukraine has already declared the
1932-1933 Famine (Holodomor) an act of genocide.  They did this through
a resolution passed on May 15, 2003 (see article and links below).  It is not
clear to many observers why President Yushchenko wants to raise this
issue again and pass a law declaring the Holodomor a genocide.  The main
agenda should be to obtain the approvals and funding necessary to build
a Holodomor Educational-Research Complex in Kyiv. AUR EDITOR
————————————————————————————————
PARLIAMENT OF UKRAINE DECLARES THE 1932-1933 FAMINE “AN
ACT OF GENOCIDE,” AND A “DELIBERATE TERRORIST ACT OF
                      THE STALINIST POLITICAL SYSTEM”

By Morgan Williams, Director
www.ArtUkraine.com  Information Service (ARTUIS)
Kyiv, Ukraine, May 19, 2003

Kyiv, Ukraine, May 19—The Parliament of Ukraine (RADA) declared the
1932-1933 famine in Ukraine “an act of genocide,” a “deliberate terrorist
act of the Stalinist political system,” an as “one of the important factors
for the gaining of Ukraine’s Independence,” and also stated, “Let us not
forget the past in the name of the future!” in an important, historic
resolution passed by the RADA on May 15, 2003.

The resolution passed with 226 members voting in favor, the minimum
required for its adoption, out of the 410 members attending the session.

The resolution as passed by the Parliament of Ukraine is in Ukrainian. The
following English translation of the resolution is by ArtUkraine Information
Service in Kyiv, Ukraine:

RESOLUTION: TO THE PEOPLE OF UKRAINE BY THE PARTICIPANTS
IN THE SPECIAL SITTING OF THE VERKHOVNA RADA ON
COMMEMORATING VICTIMS OF FAMINE 1932-1933

Submitted by I. Spodarenko, Socialist Party of Ukraine Faction
Human Rights, National Minorities and Relations Between
Nationalities Committee, #3451-1
Verkhovna Rada, Kyiv, Ukraine, May 14, 2003

We, the participants in the special sitting of the Verkhovna Rada of
Ukraine, guided by the ideals of humanism and social justice, defending the
rights of a human and a citizen from the position of Universal values,
address the people of Ukraine, and Ukrainian citizens of all nationalities,
on the year of a tragic date in our history, the 70th anniversary of the
famine organized by Stalin’s totalitarian regime.

The Ukrainian and International public are marking the 70th anniversary of
the Ukrainian National catastrophe, when, perhaps for the first time in the
history of humankind, food confiscation was used by the state as a weapon of
the mass destruction of its own population for political reasons. The famine
of 1932-1933, which was the inhuman means for the liquidation of millions of
Ukrainians, is proof of the criminal nature of the regime at that time.

The cruel confiscation of the 1932 harvest, taking it out of Ukraine, the
confiscation of all food products from every single peasant family,
destruction of temples and sacred places, mass repressions of Ukrainian
intelligentsia and clergymen, all of this was targeted to undermine the
national spirit of Ukrainians, to root out its elite, and for the
liquidation of the economic independence of peasants.

The total destruction of millions of Ukrainian bread-producers, by means
of the artificial famine, was a deliberate terrorist act of the Stalinist
political system. The social grounds of the Ukrainian nation and its
centuries-old traditions were destroyed, its spiritual culture and unique
ethical identity were undermined.

The tragedy of 1932-1933 famine in Ukraine, during many decades, was not
just kept silent but officially denied by the top rulers of the USSR. Its
reasons, character, mechanism of organization, and scale were carefully
hidden not only from the international community, but also from several
generations of our compatriots. But attempts to silence it forever and to
bury in the course of history the truth about the famine of 1932-1933 all
turned out to be in vain.

They have known since 1933 in the west and have written about this
Catastrophe of Ukraine. In 1988 the U.S. Congress officially recognized the
famine of 1932-1933 as genocide of the Ukrainian people. The International
Jurists Commission did this also then.

As for the citizens of Ukraine, the truth about the events of 1932-1933
started to become available to them on the eve of the break up of the USSR.
It was then when the official silencing of these tragic facts of history was
first broken through.

Today, one can assuredly state that the first words of truth about the
famine of 1932-1933 played a distinctive role in the national rebirth, and
became one of the important factors for the gaining of Ukraine’s
Independence.

At the same time we consider that in the realities of an independent Ukraine
it is the state that has to officially make public the horrifying truth
about those years since the famine of 1932-1933 was deliberately organized
by Stalin’s regime and has to be publicly condemned by Ukrainian society and
the international community as one of the largest, in number of victims, of
any genocide in the history of the world.

We, the participants in the special sitting of the Verkhovna Rada on May 14,
2003, do that today, recognizing the famine of 1932-1933 the act of genocide
of the Ukrainian people by the devilish plan of Stalin’s regime.

We consider that the qualification of this Catastrophe of the Ukrainian
nation as a genocide has a principal significance for stabilizing social and
political relationships in Ukraine, is an important factor in
re-establishing historical justice, in the moral healing of several
generations from terrifying social stress, and serves as an irrefutable
proof of the irreversibility of the democratization processes in our
society, and as a severe warning to any attempts of establishing a new rule
of dictatorship in Ukraine and ignoring the major right of a human –the
right to live.

Having considered the issue of famine as of the act of genocide, during this
special sitting of the Verkhovna Rada, we have fulfilled to some extent our
citizen and patriotic duty to the memory of the millions of people and to
the generation now growing up.

At the same time we are deeply certain that only after giving the official
(on the highest state level, and on behalf of all the branches of power in
Ukraine) appropriate political and legal assessment of the social
Catastrophe that the famine of 1932-1933 was in the history of our State,
and only after a worthy annual commemoration of its innumerable victims,
and only after informing the world community of the fact of the famine as
genocide against the people of Ukraine–only after all this can we call
ourselves a wholesome civilized Nation.

Let us not forget the past in the name of the future!

[English translation by  www.ArtUkraine.com  Information Service]

————————————————————————————————
————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
3. UKRAINE: YUSHCHENKO SUGGESTS PARLIAMENT PASS LAW

  ESTABLISHING FINES FOR PUBLIC DENIAL OF 1932-1933 FAMINE
     He also suggests punishing production, distribution and possession of
                        materials denying the famine with the same fine.
 

Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 2, 2006

KYIV – Ukrainian President Viktor Yushchenko is suggesting the
Verkhovna Rada to pass the law establishing administrative amenability
for public denial of the famine of 1932-1933 and punish such actions
with fines of 10-15 nontaxable minimum incomes of citizens.

This follows from the bill on the famine of 1932-1933, a copy of which
was made available to Ukrainian News.

In such a way, Yuschenko proposes supplementing the Code on
Administrative Violations with an article on public denial of the famine
of 1932-1933 in Ukraine.

He also suggests punishing production, distribution and possession of
materials denying the famine with the same fine.

He also proposes that such actions performed via mass media should be
punished with the fine of 20-30 non-taxable minimum incomes of citizens.

As Ukrainian News earlier reported, Yuschenko submitted a draft law that
suggested the Verkhovna Rada to acknowledge the famine of 1932-1933
as genocide against the Ukrainian people.

Parliaments of ten countries acknowledged the famine of 1932-1933 as
genocide against the Ukrainians.                         -30-

———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
4.                                    FAMINES IN UKRAINE:
INDUCED STARVATION, DEATH FOR MILLIONS, GENOCIDE

By Roman Serbyn, Professor Emeritus
Universite du Quebec a Montreal, Canada
Action Ukraine Report (AUR), #791, Article 1

Kyiv, Ukraine, Sunday, November 19, 2006

During the 70 years of communist rule in Ukraine, this Soviet republic
suffered a number of severe famines, the most destructive of which was
the terrible Holodomor of 1932-1933.

The term “holodomor” was coined from the Ukrainian noun “holod” (hunger,
starvation, famine) and verb “moryty” (to cause to be wasted, to kill).

Since it is now known that all the famines were preventable, many Ukrainians
apply the term to the other Ukrainian famines as well.

Recent studies, based on documentation released since the fall of communism
and the breakup of the Soviet Union show clearly, that throughout the whole
period, the Ukrainian Soviet Republic produced enough foodstuffs to be able
to feed all of its inhabitants.

The famines were the result of Moscow’s diverting of Ukrainian resources to
purposes other than the satisfaction of Ukrainian population’s hunger.

                                   FAMINE OF 1921-1923
The first widespread famine began in the summer of 1921 and lasted for two
years. It affected the grain rich southern half of the republic, where two
consecutive years of drought completely destroyed the harvest.

Approximately one million people died, mostly in the villages but the urban
centres were also affected.

Had Ukraine been truly an independent country with a government which
put the vital interests of the Ukrainian population at the centre of its
preoccupations, this famine could have been avoided.

Ukraine had not yet been completely despoiled by the German occupation of
1918, or by the part of the Russian civil war fought on Ukrainian soil, or
by the White and the Red Russian wars of reconquest of the Ukrainian “bread
basket”. The harvest in the northern half of the republic were adequate and
even in the southern part there were still some, if insufficient, reserves.

An truly independent Ukrainian government would have arranged to have
foodstuffs transferred from the north to the south, and no human lives
needed to have been lost.

But Kharkiv, now the capital of an officially sovereign and independent
Ukrainian SSR was in fact an administrative centre taking direct orders from
Moscow. And Moscow had other priorities than to safeguard the lives of
rebellious Ukrainians.

Drought had also devastated the Volga valley and the Northern Caucasus
regions in the RSFSR and affected several times more people than in
Ukraine. Famine casualties there were also much higher than in Ukraine.

Moscow decided to come to the rescue of the starving population of the
RSFSR. All taxation in the famine regions were suspended while they were
twinned with regions that had a regular harvest, and the latter were ordered
to provide famine relief.

At the same time, Moscow ignored the famine in Ukraine and ordered the
Ukrainian republic, designated as a single unit, to help the starving
population along the Volga . Moscow also appealed to the West for foreign
aid for Russia, keeping silent about the famine in Ukraine.

In fact, when in November 1921, a fact-finding mission of the American
Relief Administration enquired about conditions in Ukraine, it was told by
Moscow that there is no reason to go to Ukraine because that Republic was
providing famine relief to Russia.

What the Russian authorities failed to mention was that Ukraine was doing
this at Moscow’s orders and at the expense of it’s own population’s
starvation and death.

Ukraine was eventually opened to famine relief, due to the perseverance of
the ARA-JDC effort to bring aid to the starving Jewish population of
southern Ukraine.

Since the 1921-1923 famine was a regional scourge, decimating the urban as
well as the rural dwellers, the Jewish population of southern Ukraine also
suffered greatly and alarmed their relatives and friends in Western Europe
and North America. The American Joint Distribution Committee was already
a participant in the ARA relief effort in the RSFSR.

Together with the ARA it prevailed upon Moscow to allow a fact-finding
mission to go to Ukraine and eventually American aid, paid for the most part
by the JDC, was allowed to come to Ukraine. ARA soup kitchens were opened
in Ukraine in April 1922, eight months after their appearance in Russia.

Other charitable organizations were also allowed to set up famine relief in
Ukraine in 1922. In October 1922, the Kremlin declared the famine vanquished
and Moscow began exporting grain from Odessa, to the disgust of
international charitable organizations, which continued to provide famine
relief for another year.

                          GREAT FAMINE OF 1932-1933
The great famine of 1932-1933 differed from the one in 1921-23 in which
there were important adverse climatic conditions, the harvests in 1932-1933
were adequate.

All serious scholars agree that in spite of the upheavals due to
dekulakization and collectivization, and even grain export, there was enough
cereal grain reserves to feed all the population of the Soviet Union.

The 1930s famine also differed in that its target was the whole rural
population of Ukraine, while the urban centres received survival rations.
The people who died from starvation in the urban centres were mostly
peasants who had come to seek food.

Unlike the 1921-23 famine, the 1932-33 catastrophe affected primarily
Ukraine and the Kuban’ region of Northern Caucasus, while the food
shortages in the regions of the RSFSR contiguous to Ukraine were much
less severe.

As a result of the famine the Ukrainian SSR lost, according to various
estimates, from four to ten million people, overwhelmingly ethnic
Ukrainians, since they made up 90 % of the republic’s agriculturalists.

Perhaps as many as one million farmers died in the RSFSR, but we do
not have a clear idea of their ethnic composition.

One of the most heavily devastated areas was the Northern Caucasus
Territory, where 2/3 of the population of the Kuban region was Ukrainian;
other affected regions were inhabited by Germans, Tatars and other ethnic
minorities.

The great famine came in the wake of the so-called Stalin’s revolution from
above. Having outmaneuvered his competitors for Lenin’s mantle, Stalin
could finally undertake the transformation of the backward Soviet empire
into a modern industrial and military superpower.

Most of the capital for this endeavor would have to come from agriculture,
which would also have to sustain the growing industrial population with
food.

Tsarist agriculture had shown Stalin that the best providers of marketable
grain were the large estates of rich landowners, while the more recent
Bolshevik experience taught him that door to door confiscation of peasants
produce was a very inefficient method of procurement.

Since most of the arable land was now in the hands of the middle and poor
peasants, most of the food produce was now consumed by the farmers and
little was left for the State procurement.

                                    COLLECTIVIZATION
Collectivization would recreate large agricultural exploitations over which
the State would have a direct control and could squeeze out of them as much
as it wished. Collectivization would also correspond to Marxist ideology and
the satisfy the Party’s quest for better control over the peasant
population.

Stalin and the party hierarchy was well aware that collectivization would be
strongly opposed by the peasantry, especially in Ukraine, the Kuban, and
other regions that did not have the Russian tradition of peasant obshchina
(sort of commune).

They also knew that forceful imposition of collectivization would have very
disruptive consequences for Soviet agriculture and that total production
would undoubtedly decline.

Finally, Stalin and his henchmen could not fail to realize that in Ukraine,
the opposition to the destruction of the peasants’ traditional way of life
would assume national overtones.

In fact, recent documents such as Stalin’s correspondence with Kaganovich
and Stalin-inspired decisions of the Politburo reveal that the  “peasant”
and “national” questions became intertwined in Kremlin’s policies during the
early 1930s.

                      DEKULAKIZATION OF THE VILLAGES
Collectivization was adopted as part of the first Five Year Plan in December
1927 but was not strongly implemented until 1929. In December of that year,
the Politburo ordered the dekulakization of the villages.

Kulaks were rich peasants or those deemed to have a kulak mentality.
Theoretically numbering about 5 % of the peasant population they were
divided into three categories and dealt with accordingly.

The first category, the richest and most ferocious adversaries of the State,
were exiled into special settlements outside Ukraine, after some of the
heads of families were executed.

The second category was exiled to other regions of Ukraine and third
category was allowed to stay in the same village. In both cases they were
prevented from joining collective farms and were allotted poorer lands for
their own use.

In this way several hundred thousand of Ukraine’s most dynamic and
productive agriculturalists were destroyed or marginalized from the
Ukrainian society.

The property confiscated from the “kulaks” was turned over to the
collective farms in order to draw to them the poor peasants.

Dekoulakization thus fulfilled several goals for the regime: it brought
class struggle into the village, it provided property for the new collective
farms, it provided cheap labor in remote desolate regions of Russia, and
it removed the natural leaders of the Ukrainian peasant opposition.

Dekulakization weakened but did not prevent active peasant opposition to
collectivization. This opposition manifested itself in various ways, from
armed resistance to the so-called “babs’ki bunty” (women’s revolts).

Dekulakization was over by 1931, and most of Ukrainian peasants had been
forced to join the kolkhozes by the fall of 1932 when the great famine
began. Throughout the dekulakization, collectivization and the famine
itself, USSR exported huge quantities of grain: 1930 – 5.8 million tons;
1931 – 4.7 m.t.; 1932 – 1.6 m.t.; 1933 – 2.1 m.t.

One million tons was sufficient to feed five million people for one year. It
should also be noted that even with the exports, the State’s grain reserves
never dipped below 1.5 m.t., i.e., enough to save the starving population
from untimely suffering and death.

The first wave of induced famine hit Ukraine in the winter-spring 1932 when
half a million died; the second wave commenced in the fall of that year and
peaked sometime in the early spring days of 1933.

    FAMINE CAUSED BY HIGH PROCUREMENT QUOTAS
The direct cause of famine were high procurement quotas which most of the
kolkhozes and remaining individual peasants were unable to meet and which
Stalin refused to lower to a manageable level.

Stalin knew very well the situation in Ukrainian villages. He was
continually informed by his envoys to Ukraine Molotov, Kaganovich, Kosior
and Postyshev. He received complaints and requests for lowering of
procurement quotas from the Ukrainian leaders Petrovsky, Chubar, Terekhov.

The OGPU sent periodic reports showing the catastrophic situation in the
Ukrainian villages. Stalin’s response was always the same: there is grain in
Ukraine, saboteurs are hiding it, the grain must be found and the saboteurs
be punished.

During the worst months of the famine, party faithfuls, helped by workers
sent to Ukraine from Russian industrial centres and by local peasant
activists went from house to house, seeking hidden grain and other
foodstuffs, confiscating the last pieces of edibles from the peasant tables.

Kolkhozes and individual farmers were put on “balck boards” (black lists),
forbidden to buy the basic necessities of life: matches, kerosene, and other
manufactured goods.

  EXTERMINATION POLICY DIRECTED SPECIFICALLY

                                AGAINST UKRAINIANS
Two documents which have recently come to light reveal that Stalin’s
extermination policy was directed specifically against the Ukrainian people.

On 14 December 1932 a joint resolution of the Central Committee of the
Communist Party and the Council of Peoples Commissars of the USSR
condemned the process of Ukrainization which had been carried out in
Ukraine and Northern Caucasus (especially Kuban) for the problems in
State procurement in these regions.

Ukrainization had allowed, according to the document, Petliurites, Ukrainian
bourgeois nationalists to infiltrate local administrations, educational
establishments and the mass media outlets, create counterrevolutionary cells
and pursue a policy of sabotage and destabilization.

The solution ordered by the Party/State hierarchy was put Ukrainization in
Ukraine on its original track: to integrate the Ukrainian people into the
Soviet system. Petliurites and Ukrainian bourgeois nationalist were to be
removed from Soviet institutions in Ukraine and punished.

The punishment of the 8 million Ukrainians in the RSFSR amounted to
complete annihilation of their ethnic identity: Ukrainian bourgeois
nationalists were to be removed from all public institutions in RSFSR,
the Russian language was to replace Ukrainian in all sectors of social life
where Ukrainian was used: local administration, newspapers and journals.

All Ukrainian schools were to be Russified. In addition, the inhabitants of
many of the Ukrainian stanytsias, settled by descendants of the Ukrainian
Zaporozhian cossacks were to be deported to the north and resettled with
loyal Russian peasants from infertile lands.

The second document, which shows Stalin’s intent to exterminate a part of
the Ukrainian nation, is his directive cosigned by Molotov, and sent on 22
January 1933 to the republican authorities in Ukraine and Belarus, and five
Russian regional administrations along the Ukrainian borders.

The order blames the OGPU for allowing the previous year peasants from
Ukraine and the Kuban to go north, allegedly in search of food, but in fact
to spread propaganda against the kolkhoz system. These Petliurites and
agents of Pilsudski must not be allowed to do the same this year.

A mass movement has already started once more in Ukraine and the Kuban,
and it must be nipped in the bud. The addressed authorities must warn their
peasants against leaving their villages and take all the necessary means to
prevent a peasant exodus. The Railways are forbidden to sell tickets to
peasants in those regions.

The OGPU is ordered to arrest all peasants who do not heed the warning
and try to cross the Ukrainian border. As a result of this directive, in the
ensuing six weeks, the OGPU arrested some 220,000 people, sent about
190,000 back to their starving villages and dealt otherwise with the rest.

    STALIN-MADE-FAMINE OF 1932-1933, A GENOCIDE
These two documents provide convincing evidence that the Stalin-made famine
of 1932-1933 meets the requirements of genocide as defined by the United
Nations Convention on the Prevention of Genocide, adopted by the General
Assembly on 9 December 1948.

The crucial element of the definition, the question of intent to destroy in
whole or in part, is demonstrated by Stalin’s decision to close internal
Soviet borders thus isolating peasants of Ukraine and the Kuban to prevent
them from seeking refuge in the more benign conditions of Russia and
Belarus.

The second element of the definition, that the target group be identified as
national or ethnic is also met. The segregated peasants made up a national
group (in the civic sense of the term) as citizens of Ukraine, while at the
same time 90 % of them were ethnic Ukrainians.

Some three quarters of the Kuban peasants and Cossacks were of Ukrainian
ethnic background and thus compose an ethnic group. The nexus between
the two targeted groups was their Ukrainianness.

        THIRD FAMINE BEGAN IN THE FALL OF 1946
The third famine began in the fall of 1946 and reached its peak in the
spring of 1947. The main causes of the famine were similar to those of the
previous famines: exorbitant procurement quotas for grain and other
agricultural produce, which drained the country side of vital resources, and
Stalin’s unwillingness to aid the starving population in those regions that
suffered from drought and a poor harvests.

During the famine period, the Soviet Union shipped cereals to its new
satellites: Bulgaria, Poland, Romania, Hungary and Czechoslovakia and
even Finland and France. Some 2.5 m.t. of grain was exported.

The famine touched particularly the newly annexed Izmailivs’ka and
Chernivets’ka oblasts, where collectivization of agriculture had dire
consequences for the agrarian population. Other regions of Central and
Eastern Ukraine were also affected by food shortages.

To escape the famine, peasants fled to Western Ukraine, where the climatic
conditions had been more benign and the harvest more plentiful. To prevent
this peasant movement, the authorities posted guards along the main routes
to turn the refugees back.

In Western Ukraine, the Organization of Ukrainian Nationalists (OUN) and
the Ukrainian Insurgent Army (UPA) tried to impede the export of Ukrainian
grain to the West. Soviet authorities provided famine relief only to those
who worked in the fields, where soup kitchens were set up during working
days.

In all, about one million Ukrainians, mostly peasants, perished from
starvation during the famine of 1946-1947.

In conclusion, all three famines, 1921-1923, 1932-1933, and

1946-1947 were the result of Moscow’s deliberate diverting of
Ukrainian resources to purposes other than the satisfaction of
Ukrainian population’s hunger.                    -30-
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5.    UKRAINE’S FOREIGN AFFAIRS MINISTRY SURPRISED BY

           RUSSIAN FOREIGN MINISTRY’S STATEMENT ABOUT
     PROGRAM TO RECOGNIZE 1932-1933 FAMINE AS GENOCIDE

Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 2, 2006

KYIV – The Ukrainian Foreign Affairs Ministry is surprised by the Russian
Foreign Affairs Ministry’s statement that Ukraine is launching a campaign
around the issue of the 1932-1933 famine in Ukraine.

The Ukrainian Foreign Affairs Ministry’s press service announced this in a
commentary, a text of which Ukrainian News obtained.

‘The Ukrainian Foreign Affairs Ministry received with surprise the claim
about the so-called launching of a campaign around the issue of the 1932-33
famine in Ukraine. Even greater surprise was caused by the insinuation that
this issue is aimed against modern Russia,’ the commentary states.

The Ukrainian Foreign Affairs Ministry also says that it fails to understand
why the Russian Foreign Affairs Ministry writes the words famine and
genocide in quotes.

The Ukrainian side says that the famine in Ukraine has been a topic of broad
debate and discussion in Ukraine for many years and that these debates and
discussions are aimed at honoring the memories of the victims of the famine
and providing political and legal assessments of this tragedy involving the
Ukrainian people.

According to the Ukrainian Foreign Affairs Ministry, Ukraine has raised the
issue of the famine in Ukraine at the international level several times and
intends to continue doing so as a way of building on earlier initiatives.

Ukraine is convinced that securing recognition of the historical truth will
facilitate avoidance of a repeat of the genocide and mass violations of
human rights in the future.

‘We are counting on cooperation from the Russian side during discussion

of the issue of the famine on the international arena,’ the commentary states.

As Ukrainian News earlier reported, Foreign Affairs Minister Borys Tarasiuk
is hoping that member-countries of the United Nations Organization will
recognize the 1932-1933 famine in Ukraine as an act of genocide against the
Ukrainian people during the a session of the General Assembly of the
organization in autumn 2007.

During his address to the 61st Session of the general Assembly of the United
Nations Organization in New York on September 25, Tarasiuk called on
member-nations of the organization to recognize the 1932-1933 famine in
Ukraine as an act of genocide against the Ukrainian people.

Tarasiuk believes that the overwhelming majority of the member-states of the
United Nations Organization will support Ukraine’s proposal on the issue
while a few delegations will oppose. According to various estimates, between
3 million and 7 million people died in the 1932-1933 famine in Ukraine.

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6.  PRESIDENTIAL BILL ON 1932-1933 FAMINE NEEDS REVISION,
                      LEADER OF REGIONS PARTY BELIEVES
  
  President’s bill restricts the Constitution’s right on freedom of expression.

Ukrinform, Kyiv, Ukraine, Wed, November 8, 2006

KYIV – The leader of the Regions Party Rayisa Bohatyriova suggested to
complete a bill “On 1932 to 1933 Famine in Ukraine”, submitted by the
President as urgent.

Rayisa Bohatyriova believes the article 2 of the Presidential bill doesn’t
correspond to the article 34 of the Constitution.

The President, suggesting to set administrative responsibility for public
denial of the 1932 to 1933 famine in Ukraine, according to her, restricts
the Constitution’s right on freedom of expression.

Therefore, the President’s bill doesn’t specify which norm envisages
prohibition of the famine’s denial.

Rayisa Bohatyriova states that she upholds the bills’ idea, however, states
her doubt in support of the bill by the Parliament.  Through lack of
compromise on several sensitive issues for some members of the coalition.

In this view a working group on revision of the bill, with participation of
President Viktor Yushchenko should be formed.

Notably, the famine was recognized as the genocide by parliaments of 10
countries. According to data of historical experts the famine resulted in
the death toll of 7 to 10 M. Ukrainians, which means Ukraine experienced
death of 25,000 people every day.

Some experts claim that the Ukrainian population would have reached 100
M. people under absence of the famine.

Official Day of Memory of Famine and Political Repression Victims is
marked annually on the forth Saturday of November.          -30-

————————————————————————————————
FOOTNOTE: For a person who has spent considerable time and raised
a fair amount of private funds over the past ten years to tell the world about
the genocide in Ukraine in 1932-1933, the Holodomor, [induced starvation,
death for millions, genocide] the section of the Holodomor legislation
recommended by the president establishing administrative fines for public
denial of the 1932-1933 Holodomor in Ukraine is very alarming. 
 
Ukraine declared its independence from the Soviet Union fifteen years
ago and is supposed to be a country that now believes strongly in and
protects freedom of the press and freedom of speech.  This section of
the legislation destroys freedom of speech and freedom of the press and
one would hope, would be absolutely unconstitutional in Ukraine.
 
This section of the legislation has no place whatsoever in a free and
independent society. There should be a public outcry in Ukraine and
around the world to have this section of the legislation withdrawn. (See 
article two above for the draft legislation) AUR EDITOR Morgan Williams
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7. LANGUAGE AND FAMINE: RUSSIA’S FOREIGN MINISTER SERGEI
      LAVROV IDENTIFIES THE TWO MOST ACUTE ISSUES IN KIEV
    Attempts made to portray the famine as “ethnocide of the Ukrainian people”

By Svetlana Stepanenko, Vremya Novostei, No. 206
Moscow, Russia, Thursday, November 9, 2006

MOSCOW – Russian Foreign Minister Sergei Lavrov met in Kiev
yesterday with Ukrainian President Viktor Yushchenko, Prime Minister
Viktor Yanukovych, and Speaker Alexander Moroz. Lavrov and
Ukrainian Foreign Minister Boris Tarasiuk chaired the first meeting of
the Yushchenko-Putin commission’s international cooperation sub-
committee, discussing over twenty issues. Three technical documents
were signed, defining the sub-committee’s regulations and results.

The date for a Putin-Yushchenko meeting remains uncertain,
although Lavrov’s visit to Kiev was supposed to clarify that. As
Lavrov explained, the two presidents will meet within the framework
of the Yushchenko-Putin Ukrainian-Russian interstate commission.

However, the commission can’t convene at the presidential level
until its defense and humanitarian cooperation sub-committees have
met. Citing a source close to the negotiations, the Interfax Ukraine
news agency reported yesterday that the defense sub-committee will
meet on December 4. The date for Putin’s visit to Ukraine may be set
after that.

Tarasiuk called on Lavrov to stop “politicizing” bilateral
relations and focus on “the lives and actual needs of citizens.” The
two foreign minister discussed social guarantees, pension payments,
and expanding the network of border-crossing checkpoints.

The language issue was also mentioned. Lavrov said: “We want to
ensure equal rights for Ukrainians in Russia and Russians in Ukraine,
on a reciprocal basis, so that their wish to speak and think in their
native language can be satisfied to the maximal extent.”

They also discussed the conclusion to sea border demarcation and the
start of land demarcation, and the terms for withdrawing Russia’s Black
Sea Fleet from Ukrainian territory after 2017.

TWO MOST ACUTE ISSUES IN BILATERAL RELATIONS
After meeting with Yushchenko and Moroz, Lavrov said that the
two most acute issues in bilateral relations are the famine in
Ukraine and reciprocal language use. Yushchenko and Moroz told
Lavrov that the Ukrainian language needs support, since it’s been
displaced almost entirely in Ukraine’s eastern and central regions.

On the topic of mass starvation in Ukraine in the 1920s and 1930s,
Moroz said that “this tragedy actually happened, and it must not
become the object of silencing or speculations.”

At Lavrov’s meeting with Yanukovych, it was noted that efforts
to overcome inertia in bilateral relations, including economic
relations, are finally succeeding.

Bilateral trade turnover rose by one-third between July and September,

to $900 million. Yanukovych assured Lavrov that Ukraine will not only
defend its own interests, but also take Russia’s interests into account.

Ukrainian political analyst Vladimir Malinkovich says that the
discussion of the language problem at the interstate level is a
positive factor, since “the topic of two languages will be relevant
in Ukraine for a long time to come, with a substantial proportion of
its residents being Russian-speakers.”

But Malinkovich describes the famine issue as “artificially inflated,”
since attempts are being made to portray the famine as “ethnocide of
the Ukrainian people” – even though its victims included one million
Kazakhs and 2 million residents of Russia as well as 4 million
Ukrainians.

“If the famine is recognized at the international level as genocide directed
against the Ukrainians, that would raise the question of Russia
being the Soviet Union’s successor state and its accountability for
Soviet actions” – which is certainly a cause of concern for Moscow.

Malinkovich notes that Russia has “made some progress on the
question of dividing the waters of the Sea of Azov, agreeing that
the decision should be based on the principles of international
law.”

But it’s “premature” to talk of withdrawing the Russian Black
Sea Fleet, according to Malinkovich. The Black Sea Fleet question
will be decided closer to 2017, when present-day leaders “will have
long since left office” and other people take charge of Russia and
Ukraine.  (Translated by Elena Leonova)                -30-
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8. PRESIDENTIAL SECRETARIAT PLEASED PARTY OF REGIONS TO
     DISCUSS RECOGNITION OF UKRAINIAN FAMINE AS GENOCI
DE
      Aim is to “restore historical justice and to avoid such tragedies in future.”

Interfax-Ukraine, Kyiv, Ukraine, Thursday, November 9, 2006

KYIV – The Secretariat of the President of Ukraine is pleased by the
majority coalition’s plan to discuss urgent recognition of the Ukrainian
artificial famine, known as the Holodomor in Ukrainian, as an act of
genocide, according to presidential secretariat first deputy head Ivan
Vasiunik.

Commenting on Regions Party faction leader Raisa Bohatyriova’s proposals
regarding a presidential draft bill on the Holodomor on Thursday, Vasiunik
said the secretariat would soon host discussions on the issue with a variety
of political forces and experts.

The topic of the Holodomor may also be a subject for discussion in the
political council under the president. He said the presidential draft bill’s
aim was to “restore historical justice and to avoid such tragedies in
future.”

He said the norm of the draft bill introducing administrative punishment for
public denial of the Holodomor as genocide would prevent political
speculation by ‘political outsiders.’

He said denial of the tragedy of the Jewish Holocaust is prohibited by law
in at least ten countries.

“It is appropriate to mention here that [Premier Viktor] Yanukovych’s
government took significant steps to recognize the Holodomor in 2003. Now,
the government is demonstrating the logic of its position,” Vasiunik said.
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9.      65% OF UKRAINIANS POLLED BELIEVE 1932-1933 FAMINE
                  WAS CAUSED BY ACTIONS OF AUTHORITIES
    11.4% expressed the belief famine was caused by a natural phenomenon

Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 9, 2006

KYIV – 65.1% of Ukrainians polled by the Kyiv International Institute of
Sociology (KIIS) believe that the 1932-1933 famine in Ukraine was caused
by the actions of the authorities. This is indicated by the results of the
poll, a text of which Ukrainian News obtained.

Respondents in the poll were asked whether they thought that the famine was
caused mainly by the actions of the authorities or by a natural phenomenon.

Out of the respondents who expressed the belief that the famine was caused
by the actions of the authorities, 79.5% were in western Ukraine, 72.6% in
central Ukraine, 59.1% in southern Ukraine, and 46.3% in eastern Ukraine.

Moreover, 11.4% of the respondents expressed the belief that the famine was
caused by a natural phenomenon (5.3% in western Ukraine, 7.1% in central
Ukraine, 15.2% in southern Ukraine, and 19.6% in eastern Ukraine).

Meanwhile, 5.1% said they had not thought about the cause of the famine,
12.7% said they could not answer the question, while 5.7% said they had
not heard about the famine.

54.8% expressed the belief that the authorities deliberately organized the
famine (this belief was expressed by 73.3% of respondents in western
Ukraine, 64.1% in central Ukraine, 45.2% in southern Ukraine, and 33.1%
in eastern Ukraine).

3.7% said they did not believe that the authorities deliberately organized
the famine (1.3% in western Ukraine, 2.3% in central Ukraine, 4.5% in
southern Ukraine, and 7.3% in eastern Ukraine), 5.9% said they could not
say, 0.6% said they did not think about it, while 35% said they had not
heard about the famine or did not connect it with the actions of the
authorities.

Moreover, respondents were asked whether the famine was aimed at all
residents of Ukraine, regardless of their ethnicity, or only at ethnic
Ukrainians.

33.3% expressed the belief that the famine was aimed at all residents of
Ukraine (35.7% in western Ukraine, 41.5% in central Ukraine, 31.8% in
southern Ukraine, and 20.6% in eastern Ukraine).

14.3% said the famine was aimed only at ethnic Ukrainians (30% in western
Ukraine, 13.3% in central Ukraine, 7.4% in southern Ukraine, and 7.6% in
eastern Ukraine).

6.1% said they were unable to answer this question, 1% said they did not
think about it, while 45.3% said they had not heard about the famine or did
not connect it with deliberate actions of the authorities.

KIIS polled 2,012 people in all regions of Ukraine from September 8 to 14.
The statistical margin of error does not exceed 2.3%.

As Ukrainian News earlier reported, various estimates put the number of
people killed by the famine in Ukraine at between 3 million and 7 million.
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10. UKRAINIAN PRESIDENT WRITES LETTER TO GEORGE BUSH
        THANKING HIM FOR SIGNING LAW TO GIVE UKRAINE A
  PLACE IN WASHINGTON TO BUILD A HOLODOMOR MONUMENT

Press Office of the President of Ukraine
Kyiv, Ukraine, Friday, November 10, 2006

KYIV – Ukrainian President Victor Yushchenko has written a letter to U.S.
President George Bush to thank him for signing a law to give Ukraine’s
government a plot of land in Washington on which to erect a Holodomor
monument [1932-1933 Holodomor – induced starvation, death for millions,
genocide, in Soviet Ukraine, (Action Ukraine Report – AUR)]

“I thank you for honoring millions of innocent people whose lives were put
on the dreadful altar of the totalitarian Soviet regime. A monument in the
heart of the free world, Washington, will remind us that freedom and
democracy can guarantee that this terrible tragedy will never happen again,”
he wrote.

The President also sent letters to U.S. Senator Carl Levin [Democrat-
Michigan] and U.S. Representative Sandy Levin [Democrat – Michigan]
to thank them for helping pass the bill in the Senate and the House.

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11.    RUSSIA INITIATES FORMATION OF UKRAINIAN-RUSSIAN
       COMMISSION ON STUDYING 1932-1933 FAMINE IN UKRAINE 
      
UNIAN, Kyiv, Ukraine, Friday, 10 November, 2006

KYIV – Russia initiates formation of the Ukrainian-Russian Commission on
studying 1932 to 1933 famine in Ukraine, NCRU reports.

This was disclosed by Deputy Chief of the Presidential Secretariat Oleksandr
Chalyi. Russian recognition of the famine in Ukraine was considered at a
meeting between President Viktor Yushchenko and Russian Prime Minister
Sergei Lavrov.

The Russian Foreign Minister put the matter into a question as he believes
the problem’s solution is disputable.

Oleksandr Chalyi noted that the President stated his surprise of Russia’s
lack of understanding of a necessity of the issue and suggested to exchange
ideas on strategic approaches in solution of this matter.           -30-
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12.    PRES SURPRISED AT RUSSIA’S LACK OF UNDERSTANDING
            OF IMPORTANCE OF RECOGNIZING HOLODOMOR OF
                   1932-1933 AS GENOCIDE AGAINST UKRAINIANS

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

KYIV – President Viktor Yushchenko is surprised that Russia cannot
understand the importance of recognizing the Holodomor of 1932-1933 as a
Genocide of the Ukrainian nation. The Presidential Secretariat deputy head
for external policy Andrii Chalyi reported this at a briefing.

“Yuschenko pronounced his surprise that the Russian party does not
understand importance of this question for Ukraine and proposed to exchange
opinions about strategic approaches to his decision and also called on
searching for consolidated decisions in order to tell people the truth about
those events that took place”, said Chalyi.

According to him, Yuschenko during the meeting with Russian Foreign Affairs
Minister, Serhii Lavrov, proposed that a common commission be created,
which would include historians and scientists who could work on this
question.

As the Ukrainian News earlier reported, the Foreign Affairs Ministry was
surprised by the Russian Foreign Ministry’s statement that Ukraine promotes
a campaign of the Holodomor of 1932-1933 subject.

Foreign Minister Borys Tarasiuk hopes that the General Assembly of the
United Nations Organization of the fall of 2007 will recognize Holodomor of
1932-1933 as genocide against Ukrainian people.

Yuschenko proposed the Verkhovna Rada to recognize Holodomor of
1932-1933 as Genocide against Ukrainian people.      -30-
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13. UKRAINIAN REPUBLICAN PARTY CALLS ON YUSHCHENKO TO
       ISSUE A DECREE TO ABOLISH SYMBOLS OF SOVIET REGIME

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

KYIV – The Ukrainian Republican Party (UPP) has called on President Viktor
Yushchenko to abolish the remaining symbols of the Soviet totalitarian
regime in Ukraine. The party made the call in an appeal to Yushchenko, a
text of which Ukrainian News obtained.

The UPP is calling on Yuschenko to issue a decree entitled ‘On Abolition
of the Symbols of the Totalitarian Regime on the Territory of Ukraine.’

The party stressed in the appeal that the generation of Ukrainians who were
born in independent Ukraine will participate in the presidential and
legislative elections at all levels for the first time during the next
election cycle.

According to the party, these are people who are presently 15 years old and
whose civic consciousness is presently developing. It stressed that the
future of the country would depend largely on the slogans that accompany
these processes.

According to the party, a split into two can be observed in this sphere
because the country has its own coat of arms, anthem, flag, and
Constitution; it is immortalizing the names of its leading national
activists.

That not withstanding, the party says that symbols of the former USSR
remain in many Ukrainian towns and villages and that old street names
remain.

‘At the same time, symbols of the totalitarian regime still ‘beautify’ the
facades of buildings in many towns and villages of Ukraine while the names
of Lenin, Frunze, Kirov, Postyshev, and other punishers of the Ukrainian
people remain in the names of streets,’ the appeal states.

UPP said that the active presidential decree of February 2001 that directed
local government organs to ensure removal of symbols of the former USSR,
former Soviet republics, and slogans of the Communist Party of the USSR
during reconstruction of buildings does not solve this problem because it
does not provides for mandatory removal of these symbols.

Moreover, the party said that the previous Ukrainian parliaments considered
several draft laws on removal of such symbols but rejected the draft laws
due to the efforts of the Communist Party’s parliamentary faction.

UPP believes that the current parliament will also be unable to adopt such
an important decision.

As Ukrainian News earlier reported, Parliamentary Deputy Levko Lukianenko
of the Yulia Tymoshenko Bloc has proposed that the parliament abolish all
Soviet names and all symbols of the former USSR all over Ukraine within
three months (draft law No.2332 entitled ‘On Abolition of the Symbols and
Names of the Former USSR in Ukraine,’ which was registered with the
parliament on October 16).

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14. IVANO-FRANKIVSK REGIONAL COUNCIL CALLS ON RADA TO
     RECOGNIZE 1932-1933 HOLODOMOR AS AN ACT OF GENOCIDE
                           AGAINST THE PEOPLE OF UKRAINE

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

KYIV – The Ivano-Frankivsk Regional Council has called on the Rada to
recognize the Holodomor of 1932-1933 as Genocide against the Ukrainian
people. This appeal to the Rada was adopted at the 6th session of the
Ivano-Frankivsk Regional Council on November 10.

“The Ivano-Frankivsk Regional Council asks you (members of parliament) to
overcome political disputes and support the draft bill proposed by President
Viktor Yushchenko On the Holodomor of 1932-1933 in Ukraine”, states the
document.

The deputies believe, that the adoption of this bill will be of extreme
public-and-political, historic and moral importance for the Ukrainian
society. “It will promote its consolidation and strengthening of our state’s
international authority”, says the appeal.

The regional council deputies reminded the members of parliament, that the
question of the necessity of working out his bill, in which political-and-
legal assessment of the Holodomor of 1932-1933 as Genocide in
Ukraine was made, was repeatedly raised during the Verkhovna Rada
proceedings.

“In particular, this demand is expressed in the recommendations approved by
the Verkhovna Rada resolution No, 607-4 of March 6, 2003″, emphasize the
deputies.

As Ukrainian News reported, Yuschenko proposed Rada to recognize the
Holodomor of 1932-1933 as Genocide against Ukrainian people.  The
Holodomor of 1932-1933 is recognized as an act of Genocide against
the Ukrainian people by the parliaments of 10 countries.     -30-

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FOOTNOTE:  Many times in information distributed by the Presidential
Administration and by the Ministry of Foreign Affairs in Ukraine it is stated
that the Congress of the United States has specifically recognized the
Holodomor of 1932-1933 as an act of Genocide against the Ukrainian
people. I am not aware of any resolution or law passed by the U.S.
Congress that meets this criteria.  AUR EDITOR
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15. RUSSIA: NO REASONS TO REGARD 1932-1933 FAMINE IN
                           UKRAINE AS ETHNIC GENOCIDE

Itar-Tass, Moscow, Russia, Monday, November 13, 2006

MOSCOW — However tragic the 1932-1933 events in Ukraine were,
there are no reasons to regard them as genocide under ethnic principle,
says the commentary of the Russian Foreign Ministry on Monday in
connection with the discussion in the press of the 1932-1933 famine in
Ukraine.

It is quite often stated that famine in that period “was deliberately
provoked by the leadership of the USSR and aimed precisely against the
Ukrainian people,” the ministry noted. “The existing archive materials
indicate that the massive famine of the early 30s indeed largely stemmed
from the policy of the Soviet Union’s leadership,” the foreign ministry
said.

“It is quite clear, however, that the policy was not based on nationalities
principle.” “We all should take a more balanced attitude to such complicated
and sensitive matters of our common history, and not to allow for their
politicisation,” the ministry said.

The ministry recalled that “at the 58th session of the UN General Assembly
in 2003 most countries, members of the CIS, including Ukraine and Russia,
as well as many other states, adopted a joint statement expressing deep
grief over the deaths of millions of Ukrainians, Russians, Kazakhs and

people of other ethnic origin claimed by famine in those years.”

“However tragic those events were, there are no reasons to define them as
genocide for ethnic reasons,” the ministry stressed. “This statement was
circulated as an official document of the United Nations.”

Russia “has a grievous memory of the tragedy that took the toll of millions
of lives of Ukrainians, Russians, Kazakhs, and people of other ethnic groups
of the Soviet Union.” “This is our common grief and common memory,” the
ministry said.

“At the meeting of Russian Foreign Minister Sergei Lavrov with Ukrainian
leaders on November 8 an understanding was reached in principle about
in-depth study of this problem by historians of the two countries,” the
ministry said.                                      -30-
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16. RUSSIA AGAINST POLITICIZING UKRAINIAN FAMINE ISSUE
                       SAYS MINISTRY OF FOREIGN AFFAIRS

Interfax, Moscow, Russia, Tuesday, November 14, 2006

MOSCOW – The issue of the 1932-1933 famine in Ukraine, the Holodomor,
must not be politicized, the Russian Foreign Ministry said on its website on
Monday.

“We all should take a more balanced approach to such complex and painful
issues of our modern history to prevent them from being politicized,” the
ministry said.

The Ukrainian press suggested “that the famine at that time was deliberately
provoked by the Soviet leadership and was aimed exclusively against the
Ukrainian people,” the ministry said.

“Indeed, the archive documents available to us indicate that the mass famine
in the early 1930s was largely triggered by the policy of the then Soviet
government. However, it is quite obvious that it [the policy] did not target
any certain ethnic group,” it said.

“At the 58th session of the UN General Assembly in 2003, most CIS
member-countries, including Ukraine and Russia, as well as a large number of
other states adopted a joint statement extending profound condolences over
the millions of Ukrainians, Russians, Kazakhs and representatives of other
ethnicities who were victims of the famine,” the ministry said.

“Although the events of that period were a tragedy, there are no grounds to
describe them as an act of genocide along ethnic lines. This statement was
circulated as the UN’s official document,” the ministry said.

“Today people recall the tragedy which claimed the lives of the millions of
Ukrainians, Russians, Kazakhs and representatives of other peoples in the
Soviet Union with sadness. This is our common pain and common memory,”
it said.

“Foreign Minister of the Russian Federation Sergei Lavrov and senior
Ukrainian officials agreed in principle at their meeting on November 8 that
our countries’ historians will continue studying this problem in great
detail,” the ministry said.                           -30-
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17.  RUSSIAN FOREIGN MINISTRY REGARDS HOLODOMOR OF
        1932-33 NOT AS GENOCIDE AGAINST UKRAINIAN PEOPLE 
        There are no reasons for interpreting this event as ethnic Genocide
Ukrainian News Service, Kyiv, Ukraine, Tuesday, November 14, 2006

KYIV – Russian Foreign Affairs Ministry does not regard the Holodomor
of 1932-1933 as Genocide act against the Ukrainians.

This reads the Russian Foreign Affairs Ministry’s press service report, text
of which Ukrainian News has obtained.

According to the statement, Russia’s Foreign Ministry is not agree with the
thesis that starvation of 1932-1933 was not only deliberately provoked by
USSR authorities but directed at the Ukrainian nation alone.

In Russia’s Foreign Ministry opinion, archive materials as to this testify
that mass starvation of the early 30’s was really much conditioned by then
Soviet Union authorities policy but it is absolutely evident, that it was
pursued not on the national basis.

“All of us should treat more balanced such complicated and painful questions
of our mutual history, prevent their politization”, tells the press service
statement.

According to the Russian Foreign Affairs Ministry data, in 2003 at the 58th
session of the General Assembly of the United Nations Organization most
member-countries of the Commonwealth of Independent States, including
Ukraine and Russia, and also many other states adopted a mutual statement
in which they expressed their deep sympathy to millions of Ukrainians,
Russians, Kazakhs and representatives of the other nations that fell prey to
starvation of those years.

“Taking all the tragedy of then events into account, there are no reasons
for interpreting this as ethnic Genocide,” this statement was distributed as
an official UN document.

“Today Russian people with bitterness remember this tragedy, which took
lives of millions of Ukrainians, Russians, Kazakhs and representatives of
the other Soviet Union nations. It is our common pain and common memory”,
tells the press service statement.

According to the statement, on November 8 during the meeting of the Russian
Foreign Affairs Minister, Serhii Lavrov, with Ukrainian authorities they
reached principal agreement on further studying of this problem by the
historians of both countries.

As Ukrainian News already reported, early October President Viktor Yuschenko
proposed Verkhovna Rada to recognize Holodomor of 1932-1933 as Genocide
against Ukrainian people.

In October Foreign Affairs Minister Borys Tarasiuk hoped that the General
Assembly of the United Nations Organization of the fall of 2007 would
recognize Holodomor of 1932-1933 as genocide against Ukrainian people.

In April Russia spoke against politization of situation around recognizing
Holodomor of 1932-1933 as genocide against Ukrainian people. Holodomor
of 1932-1933 was recognized as Genocide act against the Ukrainians by the
parliaments of 10 countries.                             -30-
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18.   UKRAINIAN FOREIGN MINISTRY WELCOMES MOSCOW’S

           SOFTENING POSITION ON RECOGNIZING UKRAINIAN
                            1932-1933 FAMINE AS GENOCIDE

Interfax-Ukraine, Kyiv, Ukraine, Tuesday, November 14, 2006

KYIV – The Ukrainian Foreign Ministry appreciates the latest, softer,
comments by the press department of Russian Foreign Ministry on the
recognition of the Ukrainian artificial famine of 1932-1933 as act genocide
against the Ukrainian people.

“The tone of the comment is more favorable than that of the previous
comment. The very fact that the tone of the comment is more favorable,
indicates that the talks between [Ukrainian Foreign Minister Borys Tarasiuk
and Russian Foreign Minister Sergei Lavrov] were not fruitless,” Andriy
Deschytsia, the top spokesman for the Ukrainian ministry, said at a briefing
in Kyiv on Tuesday.

On Monday, the Russian foreign ministry urged Ukraine not to politicize the
topic of the Ukrainian famine of 1932-1933, also known as Holodomor, as
the tragedy was not an act of genocide against Ukrainians alone, and killed
people of all ethnic groups of Ukraine, including Russians.

Deschytsia said Lavrov discussed the topic during his visit to Ukraine with
President Viktor Yuschenko and the leadership of the Ukrainian ministry.

“We appreciate the fact that Russia considers it appropriate to conducted a
more detailed study of the topic by historians of the two countries, and we
hope that the work will continue,” the Ukrainian spokesman said.

Ukraine, however, will continue initiating the recognition of the Holodomor
as genocide against the Ukrainian people at the level pf bilateral
negotiations and at the level of international organizations, he said.  -30-
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19. UKRAINIAN FOREIGN MINISTER COUNTS KEY DISAGREEMENTS
   WITH RUSSIA: FAMINE, LANGUAGE, BLACK SEA FLEET, AZOV SEA

Interfax Ukraine News, Kyiv, Ukraine, Wed, November 15, 2006

MOSCOW – Ukrainian Foreign Minister Borys Tarasiuk has said he “radically”
disagrees with the Russian Foreign Ministry’s positions regarding the
so-called Famine, a massive famine in the Soviet Ukraine in 1932-1933, and
the status of the Russian language in Ukraine and mentioned other important
issues on which the two countries have disagreements.

“If Russia sticks to the position voiced in its Foreign Ministry’s
statements that commemorating the victims of the Famine is an anti-Russian
campaign, we cannot reach mutual understanding. This interpretation of the
Famine is absurd and disrespectful toward the Ukrainian people’s
sufferings,” Tarasiuk said in an interview published in the Wednesday issue
of Vremya Novostei.

Ukraine is not seeking the recognition of one or another people in Russia as
personally responsible for the Famine, but “we cannot ignore the memory of
seven to ten million of innocent victims, who were our fathers and
grandfathers,” Tarasiuk said.

“Ukraine also deems inaccurate the Russian Foreign Ministry statements
regarding the discrimination of the Russian language. When the first
Ukrainian school opens in Russia for the 4.5 million [ethnic] Ukrainians,
then we can talk at least about getting nearer to parity and mutual
respect,” Tarasiuk said.

Another issue on which Ukraine and Russia hold opposing views is the
observance of the agreements on the presence of the Russian Black Sea
Fleet in the Ukrainian territory, Tarasiuk said.

“Whatever government comes to power in Ukraine, it cannot ignore the
constitution, which bans the presence of foreign troops in the country’s
territory. The president has clearly voiced Ukraine’s position: we have
obligations on the Russian Black Sea Fleet only until 2017,” he said.

Tarasiuk also said he does not see “a platform for a compromise in the
issue of the Kerch Strait.”

“An administrative borderline between the Ukrainian Soviet Socialist
Republic and the Russian Soviet Federative Socialist Republic was defined
in early 1940 and was later confirmed repeatedly, including on the Soviet
General Staff’s maps.

The former Soviet republics automatically recognized the Soviet
administrative borders as national ones in 1991. And now the Russians are
suddenly telling us that there was no border in the Kerch Strait. So what
way should we take to find a compromise?” Tarasiuk said.

“As for the delimitation of borders in the Sea of Azov and the Black Sea,
we can find a solution here if we abide by international maritime law, as
proposed in a report by the co-chairmen of the commissions.

But the delimitation of borders in the Sea of Azov and the Black Sea still
hinges on the definition of the border in the Kerch Strait. The point
through which the border in the Kerch Strait runs to the Sea of Azov in fact
defines how the maritime borders are to be delimited,” he said.  -30-

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20. PRES YUSHCHENKO URGES GOVERNORS TO HOLD EVENTS
         DEDICATED TO DAY OF MEMORY OF FAMINE VICTIMS
   AND VICTIMS OF POLITICAL REPRESSIONS ON NOVEMBER 25

Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 16, 2006

KYIV – President Viktor Yuschenko has urged chairmen of city state
administrations of Kyiv and Sevastopol, regional state administrations and
chairmen of the Crimean Council of Ministers to hold events dedicated to the
day in memory of famine victims and victims of political repressions on
November 25. The presidential press service has disclosed this to Ukrainian
News.

In particular, Yuschenko urged heads of regions to organize laying of
mourning wreaths to the monuments and at the sites of burying.

The president also proposes to step up work via attraction of studying youth
on collecting documentary materials, evidences of people living at the time
of famine, on studying local archive materials, and also to organize
correspondent thematic exhibitions.

Yuschenko considers it necessary to attract people to participate in the
events and to participate in national event entitled Light a Candle!

He also urged chairmen of the state administrations to address head of
religious organizations requesting to hold requiems in the morning of
November 25.

As Ukrainian News earlier reported, Yuschenko had urged First Deputy Head

of the Presidential Secretariat Ivan Vasiunyk and Vice Premier Dmytro
Tabachnyk to hold Day in memory of victims of famine and political
repressions.

About three-seven million people died due to famine in Ukraine in 1932-1933.
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21.  UKRAINE CALLS ON SLOVAKIA TO RECOGNIZE 1932-1933
            FAMINE AS GENOCIDE AGAINST UKRAINIAN PEOPLE
    
Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 16, 2006

KYIV – Ukraine has called on Slovakia to recognize the 1932-1933 famine in
Ukraine as an act of genocide against the Ukrainian people. The presidential
press service announced this to Ukrainian News.

According to the press service, President Viktor Yuschenko made this call
during a meeting with Slovakia’s Parliament Speaker Pavol Paska.

Yuschenko also confirmed during the meeting that Ukraine’s European-
integration aspirations remained unchanged.

Yuschenko said that Ukraine was interested in cooperation with the European
Union in the energy industry, particularly in the area of facilitating
deliveries of energy resources to the European Union and diversifying the
routes for their delivery.

Yuschenko and Paska discussed development of political dialogue as well as
trade and economic cooperation between Ukraine and Slovakia.

Yuschenko expressed gratitude to Slovakia for meeting the cultural and
educational needs of its Ukrainian ethnic minority.

As Ukrainian News earlier reported, Yuschenko proposed in early November
that the Ukrainian parliament declare the 1932-1933 famine in Ukraine as an
act of genocide against the Ukrainian people.

In October, Foreign Affairs Minister Borys Tarasiuk expressed the hope that
member-countries of the United Nations Organization would recognize the
1932-1933 famine in Ukraine as an act of genocide against the Ukrainian
people during the autumn 2007 session of the General Assembly of the
organization.

Russia has expressed opposition to politicization of the situation
surrounding the efforts to secure recognition of the 1932-1933 famine in
Ukraine as an act of genocide against the Ukrainian people.

The parliaments of several countries have recognized the 1932-1933 famine
in Ukraine as an act of genocide.                        -30-
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22.    YUSHCHENKO CALLING ON RADA TO DECLARE 1932-1933

             FAMINE AS GENOCIDE AGAINST UKRAINIAN PEOPLE 
                      Ukrainians should find in themselves the bravery

      to declare that the nation was the victim of a terrible crime – the crime of
        genocide – that should never be repeated and convince others of this.

Ukrainian News Agency, Kyiv, Ukraine, Thursday, November 16, 2006

KYIV – President Viktor Yuschenko is calling on the parliament to declare
the 1932-1933 famine in Ukraine as an act of genocide against the Ukrainian
people. The presidential press service announced this.

‘In connection with the need to establish historical justice, moral and
spiritual healing of the Ukrainian people, I am calling on all Ukrainian
people’s deputies to back the draft law of Ukraine “On the 1932-1933
Famine in Ukraine,” the press service quoted Yuschenko as saying.

Yuschenko stressed that since independence the Ukrainian authorities have
repeatedly stated that the famine was an act of genocide: in decisions and
public statements of all the three presidents and other leaders of the
country as well as in resolutions of the parliament.

According to Yuschenko, Ukrainians should find in themselves the bravery

to declare that the nation was the victim of a terrible crime – the crime of
genocide – that should never be repeated and convince others of this.

As Ukrainian News earlier reported, Yuschenko submitted to the parliament
the draft law ‘On the 1932-1933 Famine in Ukraine,’ in which he proposed
that the parliament declare the 1932-1933 famine in Ukraine as an act of
genocide against the Ukrainian people.

According to various estimates, between 3 million and 7 million people died
in the 1932-1933 famine in Ukraine. The parliaments of 10 countries have
recognized the 1932-1933 famine in Ukraine as an act of genocide.  -30-
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23.    UKRAINIAN PRESIDENT SEEKS SUPPORT IN PARLIAMENT
          FOR BILL DECLARING SOVIET-ERA FAMINE GENOCIDE 
                  
     The author of this evil act was Stalin’s regime

Associated Press (AP), Kiev, Ukraine, Thursday, Nov 16, 2006

KIEV, Ukraine — President Viktor Yushchenko appealed to lawmakers on
Thursday to support legislation declaring the Soviet-era famine that killed
up to 10 million people in Ukraine as genocide, a move that Russia has
strongly opposed.

Moscow has argued that the 1932-33 famine was part of Communist Party
repressions that also targeted other ethnic groups in the former Soviet
Union, and that it is wrong to single out the Ukrainian people and call it a
genocide against them.

The Great Famine, as the event is known by Ukrainians, was started by Soviet
dictator Josef Stalin when he ordered the government to seize crops as part
of a campaign to force Ukrainian peasants to join collective farms.

“We aren’t accusing any people, any country or anyone in Ukraine of
genocide,” Yushchenko said in his letter to the 450-member parliament.
“That is not the aim of this bill. The author of this evil act was Stalin’s
regime.”

No vote has been scheduled on the bill.

The issue remains highly charged in the former Soviet republic because
calling it genocide would amount to an indictment of Soviet policies —
something some Communists and many pro-Russian politicians oppose.

Russia, as the successor state of the Soviet Union, has also been reluctant
to look too deeply into Communist-era crimes.

Ten countries have already recognized the famine as genocide, including the
United States, Canada and Austria.

Yushchenko noted that all three presidents since Ukraine’s 1991 independence
from the Soviet Union have supported the effort, and he said opinion polls
show most Ukrainians support such a pronouncement.

“Ukrainians have to find in themselves the courage to recognize this and
convince others that our nation became the victim of a horrible evil — the
evil of genocide that can never be allowed to happen again,” Yushchenko
said.                                              -30-

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24. TYMOSHENKO BLOC SUPPORTS RECOGNITION OF HOLODOMOR
             AS AN ACT OF GENOCIDE AGAINST UKRAINIAN NATION
       BYUT leader complains Pres Yushchenko not to be present to support bill

ForUm, Kyiv, Ukraine, Friday, November 17, 2006

KYIV – Parliamentarian Serhiy Polishchuk, member of the BYuT faction,
declares that BYuT will second the draft bill on recognition of Holodomor

as an act of genocide against Ukrainian nation. He told Friday in an interview
to journalists.

“Our position is unanimous. We will vote for the bill and will insist on
giving it not only first reading, but general approval,” the deputy said.

He assumed that SPU and PR factions will vote against the bill as these
deputies perceive unfriendly actions as regards Russia in approval of this
document.

“I do not understand what it has to do with Russia. We consider it a
genocide of the Ukrainian people and both Ukrainians and Russians
suffered from it. Everyone, who lived on the territory of Ukraine at that
time suffered,” the MP stated.

At the same time, Polishchuk complained that President Yushchenko does
not intend to be present in the VR during consideration of the bill.

“Yushchenko sent a letter to the VR with a request to support this draft
bill, but did not appear personally. I don’t know if he is afraid of the
parliament or he is absolutely indifferent to what he writes,” the deputy
noted.                                                     -30-
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LINK: http://en.for-ua.com/news/2006/11/17/133332.html
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25. SOME IN UKRAINE WANT WEAKER SOVIET-ERA FAMINE BILL
                  REMOVING THE WORD “GENOCIDE” FROM IT
  Proposed dropping genocide, calling 1932-33 Great Famine a tragedy instead

By Natasha Lisova, Associated Press Writer
Kiev, Ukraine, Friday, November 17, 2006

KIEV, Ukraine – President Viktor Yushchenko’s bid to include the word
“genocide” in legislation on the Soviet-era famine that killed up to 10
million people in Ukraine ran into difficulties Friday from lawmakers
seeking to water the bill down.

Some lawmakers allied to Prime Minister Viktor Yanukovych, bowing to
Kremlin complaints, proposed dropping the word and calling the 1932-33
Great Famine a tragedy instead.

Ukraine’s 450-member parliament failed to consider the bill submitted by
Yushchenko and instead registered their own version.

The move is a blow to Yushchenko, who had personally lobbied lawmakers to
pass his bill ahead of the Nov. 25 anniversary, saying Ukraine must have the
courage to convince the rest of the world of its position.

The Great Famine was started by Soviet dictator Josef Stalin when he ordered
the government to seize crops as part of a campaign to force Ukrainian
peasants to join collective farms. The famine is already recognized as a
genocide by 10 countries, including the United States, but such a move is
strongly opposed by Russia.

Moscow has argued that the famine was part of Communist repression that also
targeted other ethnic groups in the former Soviet Union and should not be
considered a genocide against the Ukrainian people. Russia, the successor
state to the Soviet Union, has been reluctant to tread too deeply on
Soviet-era crimes.

Roman Zvarych, Yushchenko’s representative in parliament, criticized
attempts to water down the bill. “A tragedy is not necessarily a planned
action. It can be caused by natural reasons,” said Zvarych, noting that if
Yanukovych’s allies do not want to recognize the famine as genocide, they
must say it openly.

Yanukovych’s ally Taras Chornovil, however, said that ultimately he thinks
Yushchenko’s bill – with the word “genocide” – will be supported. “Some
lawmakers just need time to study the real facts about the famine,”
Chornovil told The Associated Press. “Recently, they’ve gotten a lot of
confusing information.”

Ukrainian Communists also strongly oppose declaring the famine a genocide.
Yanukovych’s pro-Russian party won March parliamentary elections and

formed a governing coalition, pledging to improve relations with Russia. -30-
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26. UKRAINIAN MEMBERS OF PARLIAMENT DECIDED TO POSTPONE
      INDEFINITELY BILL TO RECOGNIZE 1930’S FAMINE AS GENOCIDE

TV 5 Kanal, Kiev, in Ukrainian 1300 gmt 17 Nov 06
BBC Monitoring Service, United Kingdom, Friday, Nov 17, 2006

KYIV – The Supreme Council of Ukraine [parliament] has decided to

postpone indefinitely the consideration of a bill that recognizes the 1930s
famine as genocide of the Ukrainian nation.

Yesterday, speaker Oleksandr Moroz assured Ukrainian President Viktor
Yushchenko [who tabled the bill] that parliament will support it.

The bill which was to be considered today includes a provision on
administrative responsibility for a refusal to recognize in public the
famine as the act of genocide.

MPs decided not to consider the bill despite the president’s request to do
so.

Ukraine will mark the famine anniversary on 25 November. Eight countries

of the world, including the USA, Australia and a number of European states,
have recognized the famine as a deliberate crime against the Ukrainian
people.

[Interfax-Ukraine reported at 1157 gmt on 17 November that the council of
the parliamentary coalition made a proposal to amend the bill by replacing
the words “genocide of the Ukrainian nation” with the phrase “the famine to
which the Ukrainian people fell victim” and to form a working group which
would continue working on the bill.]                       -30-
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27. UKRAINE’S PARLIAMENT POSTPONED CONSIDERATION OF
                  THE BILL ON RECOGNITION OF GENOCIDE
              Working on new draft of the Holodomor of 1932-1933


FORUM, Kyiv, Ukraine, Friday, November 17, 2006

KYIV – There are two draft bills of Holodomor of 1932-33 years in Ukraine,
leader of the SPU faction Vasyl Tsushko told journalists. One document
submitted by the President, the second one was worked out by the deputies –
members of Party of regions.

“In order not to turn the situation with Holodomor into Satanic dances on
tombs we decided to set these two draft bills on repeated first reading and
to form a working group to find a way out,” the deputy said.

He noted that the parliamentary majority proposes to remove the wording
“genocide of the nation” from the bill and to write “Holodomor, that the
Ukrainian people suffered from,” as it is written in the Constitution.

“When we write ‘genocide of the nation’ we mean only one nationality –
Ukrainians. But Holodomor annihilated all nationalities; it was a tragedy of
the Ukrainian village. I can cite my family as an example. I am a Moldavian
born on the territory of Ukraine. My ancestors lived in Ukraine. And if to
write ‘genocide of the nation’ my nationality won’t be included. That is
unfair,” Tsushko underlined.

The deputy also asked how to treat Crimea, which belonged to Russia in
1932-33 years, but now is the part of Ukraine.

First vice speaker Adam Maartynyuk proposed not to consider the draft bill
on Holodomor today, but to proceed to the next item of the agenda for lack
of time. 236 deputies supported this decision.               -30-
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LINK: http://en.for-ua.com/news/2006/11/17/153655.html
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28. COMMEMORATION OF THE HOLODOMOR AT THE UN

 

The Ukrainian Weekly, Parsippany, NY, Sunday, Nov 12, 2006
 
On the occasion of the 73rd anniversary of the 1932-1933 Great Famine
(Holodomor) in Ukraine, the Permanent Mission of Ukraine to the United
Nations will hold a special commemorative event on Tuesday, Nov. 21,
2006 from 3 p.m. to 6 p.m.

The commemoration will take place at the Dag Hammarskjold Library
Auditorium of the United Nations. Presentations will be by Prof. Taras
Hunczak and Prof. Mark L. von Hagen.

Those wishing to attend should notify the Mission of Ukraine via fax
(212-355-9455), or e-mail (vpohribnyi@yahoo.com), if possible by Nov.
17, 2006, so that necessary arrangements for U.N. ground passes could
be made on time.

The ground passes will be available for pick-up on November 21 beginning
from 2  p.m at the Visitor’s Entrance to the U.N. Headquarters (Fist Avenue
between 45th an 46th streets). The invitation comes from Viktor
Kryzhanivskyi, Charge d’Affaires.
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29.           BUILD THE HOLODOMOR COMPLEX NOW
 Holodomor – induced starvation, death for millions, genocide of 1932-1933

OP-ED: By Morgan Williams
Kyiv Post, Kyiv, Ukraine, Thursday, Sep 07 2006

Among the major crimes committed against the Ukrainian people, the
Holodomor of 1932-1933 (induced starvation-death for millions-genocide)
stands apart and forms a category of its own.

It fits the criteria for genocide according to the United Nations Convention
on the Prevention and Punishment of the Crime of Genocide. The 75th
commemoration of the Holodomor takes place in 2007-2008.

The deliberate starvation of millions of Ukrainian citizens and the horrible
suffering endured by millions more is seen as the most destructive and
costliest in terms of human lives in Ukraine’s history. Its main target was
the peasantry, the mainstay of the Ukrainian nation.

A large portion of Ukrainian peasants died and the Kremlin engineered
the execution of a large part of Ukrainian national elites (cultural,
educational, religious, political).

Millions of these victims died from starvation, others were executed
with a shot in the head, or sent to the gulag to die.

The genocide against the Ukrainian nation as a whole and included the
Ukrainian minority living in the RSFSR, especially the Kuban region of the
Northern Caucasus, where the Ukrainian peasantry was starved to death,
and a large part of the Ukrainian elites physically exterminated. This
Ukrainian ethnic minority should also be remembered.
                                 HOLODOMOR COMPLEX
Dr. James Mace, outstanding U.S. scholar on the Holodomor, called for the
establishment of a Holodomor Commemoration, Educational, Research and
Historical Complex in Kyiv. Sadly, Mace’s many calls fell on deaf ears.

Leaders in Ukraine and around the world have felt strongly it was important
for the Ukrainian genocide to find its proper place in the collective memory
of the Ukrainian nation and the world community after being covered up and
denied by the Soviet Government for 55 years.

In 2002 the Ukrainian World Congress called for the building of a complex.
I wrote an opinion piece in the Kyiv Post back on Nov. 28, 2002.

On Feb. 12, 2003, the humanitarian deputy prime minister at that time,
Dmytro Tabachnyk, representing the government, called the famine a
voluntary terrorist act that claimed the lives of up to 10 million people,
and turned Ukrainian villages into “a horrible social reservation the size
of which shocked the entire world,” in a hearing before Parliament.

Minister Tabachnyk announced the government was planning to build a
National Famine Memorial Complex to include a monument, museum and
a historical research center.

President Yushchenko told the IV World Forum of Ukrainians
recently that he would make sure a Holodomor complex is built by fall
2008. He said the complex would be appropriate to the level of the tragedy.
                       COMPLEX NEEDS TO BE BUILT NOW
The Holodomor Complex needs to be built now. It must be a separate,
stand-alone institution, not combined with another facility, or organization
that covers other repression events or periods in Ukrainian history. It must
be wholly devoted to the Ukrainian genocide.

The historical complex should be a world-class structure with a research
center, library, exhibition hall, museum, monument, chapel, archive center,
bookstore and memorial gallery, as in the leading historical centers of the
world.

There are precedents for this type of genocidal commemorative structures.
One is the Vad Yashem in Israel and the Holocaust Museum in Washington
are devoted exclusively to the Holocaust and not to other crimes the Jewish
people have suffered.

Thus, the Holodomor Complex must be focused on the Ukrainian genocide,
otherwise its role in the education of Ukrainian youth and its testimony to
the world will be greatly diminished.
                                 INSTITUTE OF MEMORY
The Institute of Memory, created recently by the Cabinet of Ministers, is
said to be devoted to the crimes against the Ukrainian nation committed by
various regimes in the 20th century. There are two main concerns about the
Complex being included under this Institute.

Firstly, the 20th century is full of tragic moments for the Ukrainian
nation. Crimes were committed by the Tsarist regime, the Polish regime in
Western Ukraine between the two wars, the Soviet regime (three famines,

mass deportations around WWII and at other times), and German atrocities
during 1918 and WWII, including the Holocaust.

Secondly, an institute devoted to a whole century of Ukraine’s national
history must not delve exclusively into the tragic moments of the country’s
past.

This is certainly not a healthy or sound way to cultivate national
consciousness, especially among the younger generation.

The Institute of Memory should also include heroic moments of the Ukrainian
struggle for independence or such joyous moments as the proclamation of
Ukrainian independence in 1918 and 1991.

The Holodomor Complex, representing the most destructive event in Ukraine’s
history, under the Institute, could get lost and just become one more event
in the long list of destructive and  heroic moments in Ukraine’s history.
                            GROUND LEVEL MONUMENT
The Holodomor Complex design jury met last week in Kyiv to review the final
designs and it will meet Sept. 8 to make the final decision. It will be
built underground with a large monument on top.

It should make a major, dramatic and strong statement against communism and
the people who were in charge, on behalf of the people, families and nation
who suffered under this horrible tragedy and pay tribute to those who died.

The monument itself can become a world recognized symbol for the Holodomor.
One that moves the human mind and heart to remember the evil systems of the
past and also present governments that destroy millions of lives.

Most current Holodomor monument models focus mainly on the victims, look
like church structures, and do not make a strong enough statement about the
crime.

 
When one looks at the Holodomor monument it is important it not be easily
confused with or mistaken for a church monument.  It should clearly signify
to the viewer that this is the Holodomor Monument and become a world
recognized symbol of the Holodomor, about the crime and the victims.

Since the final decision will be made this week, it is far too late to begin
the process once again. Officials should work with the winner to develop a
design that focuses on the crime and the victims.

The President should issue the appropriate orders now, negotiate the
necessary political deals and ensure the Complex is completed by the end
of 2008.

Its construction would provide the momentum to the Holodomor 75th
commemoration programs around the world and become a world center for
the most tragic event in Ukraine’s history. No more speeches or promises,
just actions that deliver results.                       -30-
———————————————————————————————–
Morgan Williams is Director, Government Affairs, Washington Office,
SigmaBleyzer Private Equity Investment Group. He is a member of the
Organizational Committee, 75th Anniversary of the Holodomor appointed
by the Cabinet of Ministers; Trustee, Holodomor Exhibition Collection,

“The Holodomor: Through the Eyes of Ukrainian Artists”; Chairman,
James Mace Memorial Holodomor Fund of the Ukrainian Federation of
America. He is publisher and editor of the Action Ukraine Report (AUR)
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
30.       THE FOLLY OF JAILING GENOCIDE DENIERS
    Democracy’s test: Do we tolerate a view that it is thoroughly repulsive?

COMMENTARY: By Garin K. Hovannisian
The Christian Science Monitor, Boston, MA, Mon, Nov 6, 2006

LOS ANGELES – Sticks and stones can break your bones, but words can
incarcerate you. Thus spake the National Assembly of France last month,
when it voted to fine deniers of Turkey’s 1915 genocide of Armenians up
to 45,000 euros or send them on a maximum yearlong holiday to prison.

The measure would join a series of European laws that have criminalized
denial of the Jewish Holocaust.

Although it has dim hope of clearing the Senate and President Jacques
Chirac, the bill reminds us that France’s Socialist Party – and many
European elites – believe truth is decreed, not discovered.

The news drove Armenian communities into raptures. In Armenia’s capital,
Yerevan, college students besieged the French Embassy in ecstasy.

In Los Angeles, their counterparts hurried to chat rooms and blogs to
register Hollywood’s admiration of François Hollande, the bill’s chief
advocate.

Hilda Tchoboian, president of the European Armenian Federation, welcomed
this “historic step,” noting that “the hydra of denial is a tumor on freedom
of expression,” which proved that you can mix metaphors and talk nonsense
in the span of five nouns.
                A GOVERNMENT THAT PUNISHES LIES…..
Genocide denial might be a tumor on truth, memory, or even human dignity,
but it’s not even a pimple on the freedom of expression. It’s an exercise –
however false or disgusting – of that freedom, which Ms. Tchoboian wants to
ration.

A government that has the power to punish lies also has the power to punish
truth (consider Turkey’s law that punishes those who denigrate
“Turkishness”) and, really, to punish anything it pleases.

This was the terrible lesson of the 20th century, fleshed out in millions
upon millions of carcasses across Joseph Stalin’s gulags, Adolf Hitler’s
concentration camps, Pol Pot’s killing fields, and Mao Zedong’s torture
chambers.

Indeed, this was the lesson of the Armenian genocide, which was perpetrated
by a regime that tried to build one people, one religion, and – most
important – one idea, “Ottomanization,” on the rubble of human rights.

That lesson, sadly, is lost on some French parliamentarians and the Armenian
diaspora, whose notion of politics ends where the genocide begins.

“If we have to muscle their view to death then that’s just what we’ll do!”
the Armenians seem to say, not realizing that this is precisely what the
Young Turks said about them.

Facing charges of insulting Turkishness for acknowledging the Armenian
genocide, Orhan Pamuk, the Turkish writer and 2006 Nobel Laureate, declared
at his trial this year, “What I said is not an insult. It is the truth. But
what if it is wrong? Right or wrong, do people not have the right to express
their ideas peacefully?”

That’s the key clause: right or wrong. Genocide deniers insult us. Yet in
any decent society, their rights are the most vital, precisely because they
are the most difficult to respect.

Here’s the test of true democracy: Do we tolerate another’s view when it is
thoroughly repulsive? France has failed the test.

It is easier to shut deniers up than to make them stop believing. In a
perilous reversal of its intended effect, this law would give to deniers two
advantages they crave: exemption from the debate and the position of the
oppressed.

The deniers will gain not only immunity from our persistent challenges, but
an underdog’s advantage in “speaking truth to power” when power is against
them. Denial isn’t just a river in Egypt; it’s soon to be an underground
fashion in Paris.

Censorship has long been the tool of people who are threatened by the
facts – who can’t win a debate on equal terms.

Censors have sought to gain through power what they lack in argument: the
truth. France has just exerted its power in Armenia’s name. And Armenians
rejoiced. But it will not strengthen our people and it will not redeem the
reality of the 1.5 million who were massacred beginning in 1915.
               DON’T SILENCE DENIERS, EXPOSE THEM
Like that of the Holocaust, the cause of bringing greater recognition to the
Armenian genocide is best served through total freedom of speech, in which
historians can argue the deniers into silence.

We should long for a society where those who deny documented crimes against
humanity will not be fined or jailed, but worse, be exposed, humiliated, and
condemned to oblivion.

Winston Churchill said, “History will be kind to me, for I intend to write
it.” History is less kind to people who try to rewrite it.

In its most recent move, the French National Assembly has deprived history
of its final redemption. It has revealed to the world that Armenians would
rather stifle debate than win it once and for all.                   -30-
————————————————————————————————-
Garin K. Hovannisian is the editor of UCLA’s journal of opinion and
culture, www.BruinStandard.com .
————————————————————————————————-
LINK: http://www.csmonitor.com/2006/1106/p09s01-coop.html
————————————————————————————————-
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AUR#790 Nov 16 Macroeconomic Situation Report By SigmaBleyzer; Telecommunications; Poland; Food, Fiber And Fuel To Soar; Evil Of Communism Today

=========================================================
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 790
Mr. E. Morgan Williams, Publisher and Editor  
WASHINGTON, D.C., THURSDAY, NOVEMBER 16, 2006 
           –——-  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 – MACROECONOMIC SITUATION – OCTOBER 2006
MONTHLY ANALYTICAL REPORT: Olga Pogarska, Edilberto L. Segura
SigmaBleyzer Emerging Markets Private Equity Investment Group,
The Bleyzer Foundation, Kyiv, Ukraine, Thursday, November 16, 2006

2.       FDI GROWTH IN UKRAINE IN NINE MONTHS ESTIMATED

                  AT $3.072 BN – STATE STATISTICS COMMITTEE
Interfax-Ukraine, Kyiv, Ukraine, Wednesday, November 15, 2006

3.   UKRAINE’S TELECOMMUNICATION SECTOR GROWS, DESPITE
                          AMBIGUOUS GOVERNMENT POLICY

ANALYSIS & COMMENTARY: By Kateryna Illyashenko, Ukraine Analyst
IntelliNews-Ukraine This Week, Kyiv, Ukraine, Monday, November 13, 2006

4. VANCO READY TO REDUCE ITS SHARE IN PRODUCTION SHARING

Ukrainian News Agency, Kyiv, Ukraine, November 15, 2006

7UKRAINE PLANS TO BOOST ELECTRICITY EXPORTS TO POLAND

Ukrainian News Agency, Kyiv, Ukraine, Wed, November 15, 2006

8.           UKRAINE TO EXPORT ELECTRICITY TO LITHUANIA

Business Digest, Sofia, Bulgaria, Wed, November 15, 2006

9.       POLISH, UKRAINIAN PRIME MINISTERS FOR EXTENSION

                      OF ODESSA-BRODY PIPELINE TO POLAND
PAP news agency, Warsaw, Poland, Wednesday, 15 Nov 06

10KHARKIV PLANT IMPORTS FOUR ITALIAN PRODUCTION LINES
Volodymyr Obolonsky, The Ukrainian Times
Kyiv, Ukraine, Tuesday, November 14, 2006

11. UKRAINIAN INSULIN PLANT INDAR EXHIBITS THEIR PRODUCTS
         AT INTERNATIONAL DIABETES CONFERENCE IN DENMARK
                   More than one million persons in Ukraine have diabetes
Ukrainian Times, Kyiv, Ukraine, Tuesday, November 14, 2006

12.   USAID TO ASSIST UKRAINE’S SCSSM IN STOCK MARKET

                                INFORMATION DISCLOSURE
Interfax-Ukraine, Kyiv, Ukraine, Wednesday, November  15, 2006

13UNITED STATES GIVES UKRAINE EQUIPMENT FOR BIOSAFETY

Ukrainian News Agency, Kyiv, Ukraine, Tue, November 14, 2006
Tetiana Pleshyvtseva, Ukrainian News Agency
Kyiv, Ukraine, Friday, November 10, 2006

15.  DAIMLERCHRYSLER DEALER OPENS $15.9 MIL AUTOCENTRE
Business Digest, Sofia, Bulgaria, Wed, November 15, 2006

16. UKRAINE’S NATIONAL EXHIBITION & CONFERENCE IN THE USA
                        Ukraine’s Changing Place in the Global Economy
          December 14th to 16th, 2006, Chicago Illinoiswww.ukrdzi.com/usa
Action Ukraine Report (AUR) #790, Article 16
Washington, D.C., Thursday, November 16, 2006

17EBRD REAPS REWARDS OF INVESTMENT IN EASTERN EUROPE
By Stefan Wagstyl, Financial Times
London, United Kingdom, Tue, November 14 2006

18PRESIDENT YUSHCHENKO CONSIDERS CABINET’S DECISION

Ukrainian News Agency, Kyiv, Ukraine, Wed, November 15, 2006

                      SET TO SOAR FOR FOOD, FIBER AND FUEL
         Real opportunities to export investment, skill & expertise to Ukraine
Fordyce Maxwell, Rural Affairs Editor
The Scotsman, Edinburgh, Scotland, Wed, 15th Nov 2006

20AGRICULTURE SHOULD BE TOP PRIORITY SAYS YUSHCHENKO 

UNIAN, Kyiv, Ukraine, Wednesday, November 15, 2006
 
21LITHUANIAN PRES BACKS UKRAINE’S PRO-WESTERN POLICIES
Associated Press (AP), Tue, Kyiv, Ukraine, November 14, 2006
 
22.                       PRESIDENT VIKTOR YUSHCHENKO:
     “HAVING COME TO POWER, YOU SHOULD HAVE WIELDED IT”
      Embarrassing questions on the eve of the Orange Revolution anniversary
The Day Weekly Digest #36, Kyiv, Ukraine, Tuesday, 14 November 2006
 
23.                  CONSTITUTIONAL CRISIS LOOMING OVER
                                    KIEV POWER-SHARING DEAL
By Roman Olearchyk in Kiev, Financial Times
London, UK, Tuesday, November 14 2006
 
24.            DETERMINING THE FUTURE OF UKRAINE’S PAST
ANALYSIS & COMMENTARY: By William Gleason
The Ukrainian Observer magazine website
The Willard Group, Kyiv, Ukraine, November, 2006
 
25.               THE UNAPPREHENDED EVIL OF COMMUNISM
                                IN CONTEMPORARY UKRAINE
                             The necessity to decommunize Ukraine.
By Oleksandr MUZYCHKO, Ph.D. (History), Senior Research Fellow,
Regional Branch of the National Institute of Strategic Studies in Odesa
The Day Weekly Digest #36, Kyiv, Ukraine, Tuesday, November 14, 2006
========================================================
1
UKRAINE – MACROECONOMIC SITUATION – OCTOBER 2006

MONTHLY ANALYTICAL REPORT: Olga Pogarska, Edilberto L. Segura
SigmaBleyzer Emerging Markets Private Equity Investment Group,
The Bleyzer Foundation, Kyiv, Ukraine, Thursday, November 16, 2006

                                            SUMMARY
[1] Real GDP growth accelerated to 8.9% yoy in September, bringing
cumulative growth to 6.2% yoy.

[2] Above-target budget revenue collections combined with under-execution
of expenditures allowed the consolidated budget to achieve a surplus of
0.7% of period GDP. However, successful execution of the 2006 budget
may be a challenging task due to under-fulfillment of privatization
proceeds.

[3] Consumer price index (CPI) growth accelerated to 9.1% yoy in
September, driven by the further adjustment of service tariffs and an upturn
in food prices.

[4] Favored by strong external demand, Ukraine’s export performance
continued to improve. However, booming consumption and recovered
investment demand stimulated further expansion of imports. As a result,
Ukraine’s merchandise trade deficit continued to widen in August.

[5] In late-October, Fitch confirmed Ukraine’s long-term sovereign ratings
at BB- and improved its outlook from stable to positive.

[6] During the Ukraine-EU summit, Ukraine and the EU signed visa
facilitation and readmission agreements.

                                   ECONOMIC GROWTH
According to preliminary estimates by the State Statistics Committee of
Ukraine (SSC), GDP rose by 8.9% yoy in September, with an increase of
6.2% yoy in the nine month total to UAH 350.6 billion ($69.4 billion). This
represents a solid increase as compared to the 3% yoy GDP growth reported
for January-September last year.

In the first nine months of 2006, GDP growth was supported by further
expansion of value added in wholesale and retail trade, industry, and
transport, which more than compensated for a decline in agriculture. In
particular, value added in agriculture shrank by 2.3% yoy due to a lower
crop yield this year and smaller cultivated area.

At the same time, thanks to the good harvest of vegetables, potatoes,
sugar-beets and continuing growth in animal production, agricultural
performance may improve in the coming months. Nevertheless, the sector’s
contribution to GDP growth for the year is expected to remain slightly
negative.

Strong consumption, robust investment activity and improving export
performance stimulated value added growth in other sectors of the economy.
According to the GDP data released for the second quarter (2Q 2006), final
consumption growth accelerated to 16.2% yoy, up from 14.8% yoy in 1Q 2006.

In addition to vigorous private consumption, which rose by 19.9% yoy in 2Q
on the back of continuing growth in real household income, government
consumption rebounded strongly at 7.3% yoy, up from a 2% yoy increase
in the previous quarter.

The recovery of government consumption (particularly individual – up by 9.1%
yoy in 2Q 2006 compared with a 0.3% yoy decline in 1Q 2006) was reflected
in value added growth acceleration in education, health care and housing.

Investment demand has been gaining strength, as gross fixed capital
formation surged by 10.2% yoy in 2Q 2006 compared with a 8.2% yoy
increase in the first quarter of 2006.

Favorable external conditions in combination with decelerating imports
helped reduce the negative contribution of net exports to GDP growth twice
as much as in 1Q 2006.

Wholesale and retail trade and transport reported 13.7% yoy and 9.2% yoy
increases in value added over the first nine months of the year,
respectively, which explain about 45% of the GDP growth over the period.
Another 25% and 5% is explained by strong expansion in the industrial sector
and construction.

Value added growth in construction accelerated to 7.6% yoy over
January-September, while the growth rates in manufacturing and utilities
increased to 5.4% yoy and 7.6% yoy respectively.

Output growth in manufacturing was supported by strong growth in
machine-building, metallurgy, food processing and the chemical industry,
which expanded by 11.9% yoy, 8.6% yoy, 7.1% yoy and 3.6% yoy,
respectively.

In addition, the coke and oil refining industry continued to improve as
output decline in the industry markedly decelerated by almost 25% yoy in
January to about 12% over January-September. As a result, total industrial
output reported a 5.5% yoy increase in January-September, slightly up from
5.4% yoy over January-August.

At the same time, September revealed output growth deceleration in several
key industries. In particular, output in food processing decelerated to
about 3% yoy, down from 5.3% yoy in the previous month, which may be
attributed to the overproduction of several products (such as meat, milk and
dairy products), a more modest harvest this year and growing food imports.

At the same time, taking into account recent progress in trade relations
with Russia, performance in this industry may improve in the coming months.

Export-oriented metallurgy reported a 10.8% yoy increase, a notable
deceleration from the 19.7% yoy growth in the previous month, which is
closely linked to the moderation of external demand (reflected in
stabilization of world steel price growth over June-September) and a
weakening low base effect.

However, the industry may benefit from the increase recently agreed with the
EU in Ukraine’s steel export quota for 2006 by 6% due to the transfer of
unutilized quota in 2005.

This became possible thanks to a Ukraine-EU agreement on steel trade for
2005-2006 signed in July of last year, which contained a provision allowing
for the transfer of unutilized quota in the previous year up to 15% of the
quota.

The deceleration, however, was compensated for by higher growth rates in
machine-building (9.1% yoy in September versus 6.8% yoy a month before)
and chemicals (12.2% yoy and 9.3% yoy, respectively).

Throughout the rest of the year, industrial production as well as GDP is
expected to continue to grow, though at a slower rate due to weakening
external demand, a waning low base effect and decelerating consumption
(affected by slower growth of real household income and redistribution of
expenditures in favor of utilities).

Over the next year, the economy will continue to perform reasonably well,
even taking into account a further increase in imported gas prices by about
37% to $130 per 1,000 m3. Robust investment activity this year may be
evidence of the realized need to introduce energy saving technologies.

This will partly compensate for the effect of the gas price increase next
year; however, the actual growth rate will crucially depend on steel price
developments on the international markets and the ability of Ukraine to
improve the business environment and implement economic reforms.

In the meantime, the forecasts for next year’s GDP growth by both domestic
and international experts widely diverge – from 4.2% yoy to 8% yoy.

                                       FISCAL POLICY
Acceleration of economic growth in September allowed the government to
collect revenues to the general fund of the state budget in an amount
exceeding the target by 10.9%. VAT collections remained the largest
contributor to budget revenue growth. In particular, VAT proceeds were
over-fulfilled by 25%.

At the same time, VAT refunds that month were under-executed by almost
26%. Improving performance by enterprises (the share of profitable
enterprises increased from 61.2% over the first half of the year to 64% over
January-August) contributed to the growth of enterprise profit tax (EPT)
proceeds.

In September, EPT collections were 7.3% above target. However, due to poor
receipts in the first half of the year, the cumulative EPT collections
remained under-executed by 12%.

Proceeds from taxes on international trade continued to be under-executed by
24.7% over January-September. In addition, collections from excises were 11%
below the target over the period, which is closely linked to poor
oil-refining industry performance.

Overall, tax collections were over-executed by 2.4% over the first nine
months of the year. This, in addition to under-execution of expenditures
from the general fund of the state budget by 2.4% in September and 3.7% to
date, allowed the state budget to be in surplus in September.

As a result, the cumulative state budget deficit declined from UAH 1.7
billion over January-August to UAH 1.4 billion over January-September.
Thanks to surpluses in local budgets, the consolidated budget registered a
surplus of UAH 2.6 billion or 0.7% of period GDP.

At the same time, despite reasonable fiscal sector performance so far,
successful execution of the 2006 budget may be a challenging task. According
to the 2006 Budget Law, the budget deficit is envisaged at 2.6% of GDP and
is to be financed through privatization revenues (85%) and government
borrowings.

Proceeds from new privatization deals were planned in the amount of UAH 2.1
billion. However, as of October 1st, the collected amount represented only
16% of the target.

Scheduled for September 6th and October 3rd privatization contests of 38.14%
of limestone extractive and production enterprise “Komsomolsk ore
directorate” and 76% of “Luganskteplovoz” (the only main-line locomotive
producer in Ukraine and one of the largest producers of railway and mining
machines and equipment) could have improved the situation.

However, the deals were either eliminated or postponed in October. Hence, in
mid-October it became clear that the government plans regarding
privatization proceeds will not be realized this year.

In September, the government resumed issuance of domestic T-bills and
Eurobonds. During the month it attracted UAH 110 million ($21.8 million) and
about $300 million on domestic and external markets respectively.

However, these amounts are considerably lower than public debt interest and
principal payments. Due to the lack of funds for expected budget deficit
financing, the government plans to revise the 2006 Budget Law in
mid-November.

                                     MONETARY POLICY
In September, the consumer price index (CPI) surged by 2% month-over-month
(mom). In annual terms, consumer inflation accelerated to 9.1% yoy, up from
7.4% yoy a month before. As in the previous months, the acceleration was
primarily driven by growing service tariffs. In particular, starting
September 1st electricity tariffs were raised by 25%.

Since the beginning of the year, the cost of electricity for households grew
by 56.3%. In addition, more expensive energy resources prompted price
increases on housing services, water supply, urban and city transportation.

Rent services, the cost of which increased by 8.7% mom in September,
contributed to an almost 6% mom increase in service prices that month as
well. In annual terms, the growth of service prices accelerated to 33% yoy,
up from about 30% yoy a month ago.

Following six months of deflation, the food price index grew by 1.1% mom
in September, which translated into a 4.2% increase in annual terms.

The upsurge in food prices may be related to a moderate grain harvest this
year (prices on bread, flour, and macaroni), expectations of export
resumption (prices on meat, milk and dairy products), the change in
methodology of recording prices (potatoes), and common to all commodities
higher production costs related to more expansive energy resources,
utilities and transportation services.

Prices for non-foods grew by 0.4% mom in September on account of a 1.2%
mom increase in gasoline prices. However, due to a high base effect, annual
growth of non-food prices continued to decelerate, posting less than 3% yoy
in September.

As we expected, the moratorium on increases of service tariffs adopted by
the Ukrainian parliament in mid-September was abolished at the beginning of
October. In exchange, the government proposed to decrease gas prices for
households using gas-stoves by 18%. The other tariff increases were
retained.

With the abolishment of the moratorium, service tariffs are expected to
continue to grow this year, as the process of utility tariff adjustment to
cost-covering levels differs in speed and magnitude throughout Ukraine.
As a result, the government forecast of 10% yoy year-end inflation this year
looks quite realistic.

Monetary factors have also contributed to acceleration of inflation in
September, though they were not dominant. In particular, the monetary base
grew by 3.5% mom compared with a 0.4% mom decline in the previous month.
The annual growth posted 20.3% yoy, up from 19.5% yoy in August.

The acceleration was primarily attributed to NBU net foreign exchange
purchases on the inter-bank market, which amounted to $552 million in
September, and a further decline of funds on government accounts with the
NBU.

NBU interventions were aimed at maintaining the hryvnia exchange rate at
5.05 UAH/$, an unchanged level since summer 2005. This, in turn, allowed the
NBU to further accumulate its international reserves.

By the end of September, they amounted to $19.14 billion. The growth of the
money supply (M3) remained virtually unchanged at 37.3% yoy thanks to an
increased multiplication effect (the money multiplier reached a record high
2.77).

A more significant reduction of reserve requirements on deposits in national
currency prompted commercial banks to further increase the hryvnia deposit
rate to 7.4% per annum in September (the deposit rate on
foreign-currency-denominated deposits remained at 5.3% p.a.).

This, coupled with the end of the vacation season and strong growth of
household incomes, were the major drivers for deposit growth acceleration in
September. During the month, deposits in national currency grew by 6.6%
mom, while deposits in foreign currency rose by only 1% mom.

In annual terms, however, the growth of forex-denominated deposits still
considerably outpaced that of hryvnia-denominated deposits (64.4% yoy
versus 31.7% yoy, respectively).

Further growth of deposits (up by 43% yoy in September) as well as active
borrowing from abroad allowed commercial banks to continue to expand their
loan portfolios in September.

During the month, the volume of private sector lending by commercial banks
increased by 66.1% yoy, while the average cost of loans increased by 10
basis points to 13.3% per annum.

The differentiation of reserve requirements by currency, however, has had a
rather limited effect on the structure of banks’ lending portfolios so far.

Though the growth of national currency denominated loans accelerated to
49% yoy in September (up from 48.3% yoy a month before), the growth of
forex-denominated loans accelerated as well to 90.4% yoy.

With the aim to speed up the process of balancing banks’ credit portfolios
by currency, and thus diminish commercial banks’ exposure to foreign
exchange risk, the NBU decided to further manipulate with reserve
requirements.

At the same time, to offset the likely monetary expansion caused by this
move, the NBU increased the daily minimum reserve requirement from 70%
to 100% [1].

                     INTERNATIONAL TRADE AND CAPITAL
Favored by strong external demand for Ukraine’s metals, chemicals,
machinery, and transport vehicles, merchandise export performance continued
to improve. In August alone, goods exports surged by 30% yoy, bringing the
cumulative growth to about 8% yoy over January-August.

At the same time, the ongoing increase in consumption demand as well as
revived investment demand stimulated the growth of imports. During the
month, merchandise imports growth accelerated to 20.4% yoy, up from
17% yoy a month ago.

The year-to-date growth remained virtually unchanged at 21.2% yoy. As a
result, the merchandise trade deficit continued to widen, reaching $3.6
billion at the end of August, which is equivalent to about 6% of
January-August GDP.

Ukraine’s main export commodities remained metals, chemicals, machinery,
and transport vehicles. The resumed growth of world prices for metals in
April-August was the primary engine of improved performance of Ukraine’s
merchandise exports.

Metal exports, still the weightiest component of total merchandise trade
(42.6%), grew by 9.1% yoy between January and August, a notable acceleration
from 4.6% yoy growth in January-July. Strong external demand has contributed
to further expansion of Ukraine’s chemicals, the cross-border trade of which
increased by 15.5% yoy.

This year’s metal (and to a lesser extent chemical) export performance has
proved once more the high vulnerability of Ukraine’s economy to sudden
shifts in the external environment.

A possible solution is enhancing high-value-added exports like machines,
equipment, and transport vehicles. Currently, these commodities account for
about 13% of total goods export, increasing by 10.5% yoy over the eight
months of the year.

On the import side, energy resources and investment goods remained the two
largest groups in its structure, together accounting for about 60%. In
January-August, imports of fossil fuels grew by 11.9% yoy.

The growth acceleration from 10.9% yoy over January-July may be attributed
to higher world crude oil prices and an increase in Russia’s duty on crude
oil exports in August rather than an increase in import volumes.

Robust growth of machines and equipment and transport vehicle imports (38.1%
yoy over January-August) is another evidence of recovered investment demand
in the country.

The geographical breakdown of Ukraine’s foreign trade remains biased towards
CIS countries, which accounted for 47% of merchandise imports and 31% of
exports; however, the EU-25’s share of imports and exports constituted 33.4%
and 28% respectively and is steadily growing in the course of this year.

                             INTERNATIONAL PROGRAMS
On October 24th, a Japanese Policy and Human Resource Development
(PHRD) Grant Agreement was signed by the Ministry of Economy of Ukraine
and the World Bank.

The US$700,000 grant will assist the government in preparing the second
Development Policy Loan (DPL-2) from the World Bank by implementing
policy commitments and planning future reform steps in three major areas:
improvements in the investment climate, better public administration and
public financial management and greater social inclusion.

    OTHER DEVELOPMENTS AND REFORMS AFFECTING
                            THE INVESTMENT CLIMATE
On October 25th, Fitch revised its outlook for Ukraine’s long-term rating in
foreign and national currency from BB- stable to BB- positive.

According to agency experts, the impressive economic growth that Ukraine
has demonstrated this year in spite of a notable increase in the price of
imported gas and political instability were the primary reasons for the
upgrade.

Though it was too early to judge about new government policies, the
government commitment to secure WTO entry in early 2007 was seen as a
positive sign by the agency.

During the EU-Ukraine summit that took place in Helsinki on October 27th
2006, the EU’s highest-ranking officials welcomed the progress that Ukraine
has made in political and economic reforms and called for continuation of
the overall reform process.

The reform of the judiciary, the fight against corruption and improving the
business climate, together with the finalization of Ukraine’s WTO accession,
were named as the highest priorities.

During the summit, Ukraine and the EU signed visa facilitation and
readmission agreements. The agreement on visa facilitation eases the
procedures for issuing short-term visas for Ukrainian citizens, sets out
simplified criteria for issuing multiple-entry visas for many groups of
people, such as close relatives, truck drivers, businessmen, students,
journalists and members of official delegations.

The agreement on readmission sets out clear obligations and procedures for
the authorities of both Ukraine and the respective EU Member State as to
when and how to take back people who are illegally residing in their
territories.

The signing of these agreements is seen by the Ukrainian authorities as an
important step towards deeper integration with the EU.
———————————————————————————————-
[1] The daily requirement for the amount of bank reserves to be kept on the
correspondent account with the NBU, % of the previous month’s obligatory
reserves.
———————————————————————————————-
NOTE: To read the entire SigmaBleyzer/The Bleyzer Foundation Ukraine
Macroeconomic Situation Report for October, 2006 and previous monthly
reports in a PDF format, including several color charts and graphics click
on the following link: http://www.sigmableyzer.com/en/page/532.
————————————————————————————————–
NOTE:  SigmaBleyzer/The Bleyzer Foundation also publishes monthly
Macroeconomic Situation Reports for Bulgaria and Romania. They are
 published at http://www.sigmableyzer.com/en/page/532.
————————————————————————————————–
FOR FURTHER INFORMATION CONTACT: Morgan Williams,

Director, Government Affairs, Washington Office, SigmaBleyzer,
Washington, D.C., MWilliams@SigmaBleyzer.com.
http://www.SigmaBleyzer.com, http://www.BleyzerFoundation.com.
————————————————————————————————-
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2.      FDI GROWTH IN UKRAINE IN NINE MONTHS ESTIMATED
                AT $3.072 BN – STATE STATISTICS COMMITTEE

Interfax-Ukraine, Kyiv, Ukraine, Wednesday, November 15, 2006

KYIV – The growth of foreign direct investments (FDIs) in the Ukrainian
economy in the nine months of 2006 was estimated at $3.072 billion, a
3.3-fold rise as compared with the same period last year, the State
Statistics Committee said in a report on Wednesday.

Overall FDIs reached $19.912 billion by October 1, a 2.1-fold increase

from October 2005, the report reads.

From January to September 2006, FDIs in the Ukrainian economy stood at
$3.239 billion, the Committee said. Investors from the CIS countries
invested $137.5 million (4.2% of the overall amount) and from the rest of
the world $3.101 billion. Investors sent $347.8 million abroad.

Nonresidents from France made the largest investment – $676 million, from
Cyprus $554.3 million, the Netherlands $433.9 million, the United Kingdom
$350.3 million, Austria $221.4 million, Germany $198.6 million, Russia
$120.5 million, and Poland $105 million.

The largest sums of money were invested in the financial sector ($993.9
million), real estate ($385.3 million) and industry ($703.2 million). The
Economy Ministry forecasts FDI growth in Ukraine in 2006 at $4.5 billion

and in 2007 – $3.3 billion.                       -30-
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3. UKRAINE’S TELECOMMUNICATION SECTOR GROWS, DESPITE
                        AMBIGUOUS GOVERNMENT POLICY
          
ANALYSIS & COMMENTARY: By Kateryna Illyashenko, Ukraine Analyst
IntelliNews-Ukraine This Week, Kyiv, Ukraine, Monday, November 13, 2006

The strong economic expansion in the country has led to impressive growth

in the telecommunication sector. The delayed and controversial issue of
Ukrtelecom’s privatization has had an overall negative impact on the
modernization of fixed line networks and services in the country.

Still, increased demand for modern telecommunication services resulted in
steady substantial growth of mobile and wireless local loop segments of the
market.

Their expansion in turn gave new impulse for development of the national
telecom market and created new opportunities for US exporters of GSM and
CDMA technologies and products.

Operators of Internet services and IP telephony reported healthy growth of
sales and customer base in Jan-Sep 2006

Solid growth in mobile communications and wireless local loop network
development resulted in a substantial increase in demand for computer
software for industrial and office needs.

Additionally, LANs and Internet resources are becoming more and more
popular, thus again stimulating the demand for new software for networking,
data storage and browsing.
       Government attempts to sell Ukrtelecom for past 7 years
The main issue in the telecommunications sector remains the privatization of
Ukrtelecom.Ukrtelecom was created in 1993, when the Ukrainian Ministry of
Communications (MOC) reorganized the national telecommunications structure
by merging several MOC departments and regional telephone operators.

Ukrtelecom owns all transmission facilities and administers national fixed
line infrastructure. The company is monopoly in this market segment and it
is scheduled for privatization in 2007.

However, analysts forecast that the company’s profits are likely to decline
due to increased competition from mobile operators, inefficiency and
ambiguous policy of the government. This may again delay the privatization
of this company.

Georgiy Dzekon, Ukrtelecom’s chairman, said the company installed 700,000
new lines in 2005 while Ukraine’s four mobile operators added about 15mn new
subscribers.

The company’s profits fell to USD 103mn in 2005 from USD 190mn in 2004.
Officials expect about USD 80mn in profits in full-2006.

Ukrtelecom is the biggest provider of fixed-line telephone services in the
country. In Sep 2006 it had 9.8mn subscribers and controlled 78.5% of the
fixed-line telecommunications market.

Other major market participants are Optima Telecom and Farlep. According to
the National Communication Regulation Commission in Sep 2006 they provided
fixed line services for more than 450,000 subscribers and jointly controlled
6% of the market.

The government, which owns 92.86% of Ukrtelecom, wants to increase the
company’s value before the company is privatized. Recently, the company
obtained permission to offer mobile services, including the country’s only
3G license.

We believe that a lack of certainty regarding the government policy towards
Ukrtelecom damages the company. It has been attempting to sell Ukrtelecom
during the past seven years.

However, the sale was several times delayed due to political struggles and
fears that the company will be undervalued during the sale. Government also
needs to pass a special law on Ukrtelecom’s privatization, specifying the
amount it should be sold for and the terms of the tender.

Datagroup company posts strongest net revenue growth in 2005
A number of smaller regional companies are also present on local fixed line
telecommunication market. The strongest net revenue growth in 2005 was
posted by Datagroup Company. The indicator went up by 109.91% y/y to
UAH 88.28mn (USD 17.48mn).

Recently, telecommunication sector regulator allocated 33,000 telephone
numbers in Kyiv and the Kyiv region as well as 5,000 numbers in Mykolaiv to
the Datagroup telecommunication company.

Datagroup consists of several regional telephone companies and service
providers as well as the Datasat satellite data transmission network
operator, the Datacom land-based data transmission operator, the Krokus
Telecom telephone operator (Kyiv), and the Kol fiber-optic communications
operator (Kyiv).
           UMC to pay USD 19.5mn to acquire CDMA license
The mobile division of telecommunications sector keeps growing as well with
a number of key players strengthening their positions on the market.

The second largest mobile operator Ukrainian Mobile Communications (UMC)
plans to pay USD 19.5mn for its CDMA-450 mobile license. UMC must make

the payment within a month; otherwise, the license will be cancelled.

It should be mentioned that the license was given to the company on Jul 13.
However, the company did not have the available resources to pay for it and
continued tried to focus on provision of internet mobile services rather
than voice services.

However, it seems now that the funds are available and the company will
upgrade its outdated network to CDMA-450 standard. This means it will again
return to voice service provision.

The number of subscribers of the UMC mobile communications operator rose by
0.426mn or 2.7% m/m to 16.359mn in September. UMC finished 2005 with net
profits of USD 323.6mn. The company’s net revenues rose by 44.4% y/y and
made up to USD 1.2bn

     Kyivstar leading mobile provider in Ukraine increases customer base
The largest mobile operator in Ukraine is Kyivstar. The company was founded
in 1994. Norway’s telenor controls 56.51% of the company and Altimo, the
telecommunications arm of Russia’s Alfa group, indirectly has 43.49% stake
(through Storm company).

From the very beginning, the company was seen to have ties with relatives of
the former Ukrainian president Leonid Kuchma. So it managed to get in the
past preferential attitude from various government agencies in the past.

The subscriber base of Ukrainian mobile operator Kyivstar totaled 18.256mn
on Nov 1, 2006, the company said. Its subscriber base surged by 123% y/y to
13.925mn users. The company finished 2005 with a net profit of USD

322.852mn
              Astelit’s life:) brand keeps attracting new customers,
                                   increasing its market share
Astelit is the third largest mobile telephone network operator, behind UMC
and Kyivstar.

In Jan 2005 Astelit launched GSM-1800 service under life:) brand. Through
aggressive marketing by Sep 2006 the company attracted over 5mn contract

and prepaid subscribers, not all of them stayed though.

The company, despite introducing a 0 kopek calling plan (between several
favourite numbers), still has small network and unstable subscriber base.
The company is owned by Turkcell (54.2%) and Ukrainian SCM Holdings

(45.8%).
In Jul-Sep, the number of subscribers using services of the Astelit mobile
cellular communications operator, which owns the mobile brand life:), grew
by 19% against April-June to 4.65mn.
          Golden Telecom receives license to provide wireless
               communication services in number of regions
Golden Telecom LLC is the smallest GSM operator in Ukraine, although it
started early by launching its GSM-1800 operation back in 1996.

In the early 2000s new owners (controlled by the Russian Alfa Group) changed
the company’s strategy, which since then focuses on provision of integrated
telecommunications services for businesses and other high-usage customers
and telecommunications operators.

The number of Golden Telecom’s GSM post paid and prepaid subscribers
recently dropped to some 50,000 (As of Nov 1, 2006). The outlook for its GSM
business is grim because of strong competition coming from Kyivstar, UMC and
Astelit.

In May 2006, the National Commission for Communications Regulation in
Ukraine issued a 15-year license authorizing Golden Telecom (Ukraine) to
provide wireless communication services using GSM-1800 standard in various
regions of Ukraine in addition to its current GSM networks in Kyiv and
Odessa.

The new license covers approximately 86% of Ukraine territory with an
overall population of 38mn people. The license will enable Golden Telecom
(Ukraine) to provide wireless communication and services to approximately
81% of Ukraine’s population.
            Russia’s VimpelCom acquires Ukranian RadioSystems
Ukrainian RadioSystems (URS) was small mobile operator in Ukraine with some
940,000 GSM subscribers (in Sep 2006). The Ukrainian company operates under
Wellcom, Mobi (prepaid) and Beeline brands. The company’s network of some
700 base stations, which is now expanding, covers over 137 cities and more
than 500 villages in Ukraine.

The company was founded in 1995, and Motorola acquired 49% of the company

in 1996. URS has got a GSM-900 license in 1997, but Motorola backed off the
venture the same year due to the alleged support of the local government
provided to another mobile operator.

Korean Daewoo got Motorola’s stake, didn’t do much to grow the business and
sold it to a Ukrainian financial group in 2003. In November 2005, 100% of
the company’s ownership was acquired by the Russian VimpelCom for USD

230mn.

The deal was surrounded by a controversy involving two major shareholders of
VimpelCom: the Russian Alfa Group and Telenor, a telephone-company in
Norway.

Following the acquisition by Vimpelcom, all company’s services have been
re-branded to the common ‘Beeline’, similar to a VimpelCom’s major mobile
asset in Russia. Now VimpelCom plans to aggressively expand on Ukrainian
market using URS as the base.                      -30-

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4. VANCO READY TO REDUCE ITS SHARE IN PRODUCTION SHARING
      AGREEMENT FOR KERCH OIL AND GAS DEPOSIT IN BLACK SEA

Interfax-Ukraine, Kyiv, Ukraine, Tuesday, November 14, 2006

KYIV – Vanco International Limited (the United States) is ready to reduce its

share in the production sharing agreement with the Ukrainian government for
the highly prospective Prykerchenska Tender Area located in the Black Sea,
offshore Ukraine.

“Now the Ukrainian government proposes: 60% before taxation for Vanco and
40% for the state. After taxation we will have 45% and the state will have
55%. Theoretically, we might agree with this,” John Imle, the representative
of Vanco International Limited in Ukraine said in an interview with the Delo
newspaper.

As was reported, on April 19, 2006, Vanco won a competitive tender for the
right to conclude a Production Sharing Agreement with the government of
Ukraine for the highly prospective Prykerchenska tender area.

Covering 12,960 square kilometers, the Prykerchenska PSA Tender Area is
located offshore the Crimea near the city of Kerch. In its northern
shallower part, the Tender Area contains a prominent Tertiary folded belt
with numerous prospective structures similar to the recently announced
Subbotina oil and gas discovery.

The field has tentative D+?2+?3 reserves of 30,000 tonnes of fuel units per
square kilometer. No drilling has been carried out at the section.    -30-
=———————————————————————————————–

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5.  LARGE FRENCH OIL & GAS PRODUCER READY TO INVEST IN
    DEVELOPMENT OF DEEP OIL AND GAS DEPOSITS IN UKRAINE

Interfax-Ukraine, Kyiv, Ukraine, Wednesday, Nov  15, 2006

KYIV – Total, France’s large oil and gas producer, is ready to provide
Ukraine with the technologies needed to develop its deep oil and gas fields,
and will invest funds in similar projects.

A spokesman for Total announced his company’s investment plans during

talks with the heads of national JSC Nadra Ukrainy over cooperation in gas
production in Ukraine, Nadra Ukrainy reported in a press release on
Wednesday.

The French side is ready to share its experience and technology with Nadra
Ukrainy, as well as invest funds in the production of hydrocarbons from
deposits at depths greater than 5 km, reads the press release.

Oleksandr Demianiuk, the head of Nadra Ukrainy’s foreign economic relations
department, said the Ukrainian company is interested in cooperating with
Total.

The sides agreed to hold enlarged talks soon to sign a framework agreement
on cooperation and coordinate further joint efforts.            -30-
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6. POLISH INVESTORS INVITED TO PARTICIPATE IN COMPLETION
          OF LVIV REGION THERMOELECTRIC POWER STATION
 
Ukrainian News Agency, Kyiv, Ukraine, November 15, 2006

KYIV – Ukraine intends to invite Polish investors to participate in completion

of construction and reconstruction of the Dobrotvir thermoelectric power
station (Lviv region).

Prime Minister Viktor Yanukovych announced this at the first meeting of the
Ukrainian-Polish intergovernmental commission for economic cooperation.

‘We want to propose participation of Polish investors in completion of
construction and reconstruction of units at the Dobrotvir thermoelectric
power station,’ Yanukovych said.

According to hi, it is necessary to invite investors in order to prevent
reduction of electricity supplies to Poland.

As Ukrainian News earlier reported, the Dobrotvir thermoelectric power
station is part of the Zahidenerho power generating company.

The National Electricity Regulation Commission intends to obtain UAH 3.8
billion for financing reconstruction and modernization of power generating
facilities.

Energy Company of Ukraine, a national joint-stock company, considers the
projects involving reconstruction and modernization of the Dobrotvir
thermoelectric power station’s power generating unit No. 9, among others, to
be prospective from the viewpoint of attracting investments.    -30-
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7. UKRAINE PLANS TO BOOST ELECTRICITY EXPORTS TO POLAND

 
Ukrainian News Agency, Kyiv, Ukraine, Wed, November 15, 2006

KYIV – Ukraine intends to increase exports of electricity to Poland. Premier
Viktor Yanukovych told this at a joint press conference with his Polish
counterpart Jaroslaw Kaczynski in Kyiv.

Particularly, Yanukovych noted that Ukraine wanted to equalize its trading
balance with Poland by increasing exports of Ukrainian commodities and
electricity.

“We’ve agreed that in the near future our trading balance would be made
equal with Poland owing to an increase in supplies of Ukrainian goods and
electricity,” Yanukovych said.

He noted that in January-August 2006, the commodity turnover between

Ukraine and Poland totaled USD 2.098 million, which is 45% up on the
same period in 2005.

At the same time, exports of Ukrainian commodities to Poland reached USD

846 million, while Ukraine’s negative balance totaled USD 406 million.

Economy Minister Volodymyr Makukha, who took part in the talks with the
Polish delegation, told journalists that Ukraine wanted to boost electricity
exports to Poland, and the Polish side welcomes the plan.

Makukha also noted that Ukraine planed to equalize its trade and economic
balance with Poland by deepening cooperation in production.

As Ukrainian News earlier reported, Ukraine intends to increase exports of
its products to Poland for overcoming negative balance in the bilateral
trade.

Ukraine intends to invite Polish investors to complete the Dobrotvir
thermoelectric power station (Lviv region). Electricity exports are performed

by Ukrinterenerho, a state enterprise.

Ukrinterenerho exports electricity from the Burshtyn thermoelectric power
station to Moldova, Slovakia, Poland, Hungary, and Romania. It also started
exporting electricity to Belarus in January.

Ukrinterenerho buys electricity on the wholesale electricity market at a
tariff established by the National Electricity Regulation Commission.

The Cabinet of Ministers transferred 100% of the shares in Ukrinterenerho
into the statutory capital of the Energy Company of Ukraine.   -30-
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8.     UKRAINE TO EXPORT ELECTRICITY TO LITHUANIA
 
Business Digest, Sofia, Bulgaria, Wed, November 15, 2006

KYIV – Ukraine and Lithuania have reached an agreement on Ukrainian
electricity supplies to Lithuania from 2010, said Lithuanian President Valdas

Adamkus after his meeting with Ukrainian President Viktor Yushchenko.
Lithuania will shut down its Ignalina nuclear power plant in 2009 and
Ukraine could export to Lithuania some 16 billion kWh annually.

The two countries have a considerable potential for enhancing trade and
investments, Yushchenko noted. The trade turnover between Ukraine and
Lithuania rose by 40 pct year-on-year in the first three quarters of 2006,
Ukrainian Economy Minister Volodymyr Makukha said. Ukraine has attracted

the biggest amount of Lithuanian foreign investments with some 161 Lithuanian
companies working in the country.

The Ukrainian President said that one of the priorities of the countries’
bilateral cooperation is their participation in the elaboration and
implementation of a new energy strategy for the European Union (EU), in
favour of developing alternative and renewable energy sources,
diversification of routes and increasing energy utilization efficiency.

According to Yushchenko, Ukraine and Lithuania should develop the
transportation routes between the Black Sea region and the Baltic countries.
(Note: The abstract is based on information published by local websites

RBC and Liga Biznesinform on November 14, 2006)
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LINK: http://liga.net/,http://www.rbc.ua
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9.   POLISH, UKRAINIAN PRIME MINISTERS FOR EXTENSION
                    OF ODESSA-BRODY PIPELINE TO POLAND

PAP news agency, Warsaw, Poland, Wednesday, 15 Nov 06

KIEV – The Polish and Ukrainian prime ministers, Jaroslaw Kaczynski and
Viktor Yanukovych have said that Ukraine’s Odessa- Brody pipeline should

be extended to Poland.

During a joint press conference on Wednesday both prime ministers agreed
that plans of extension of the oil pipeline to the Polish city of Plock has
a chance for quick implementation.

“We have financial possibilities to realize it,” said Kaczynski but declined
to give any details. The two premiers, however, noted that there are many
details still to be worked out.

The pipeline is to carry Caspian Sea oil to Poland and Europe, a move that
could help lessen the continent’s reliance on Russian oil. Prime Minister
Kaczynski, on a one-day visit to Kiev, spoke of a “new opening in
Polish-Ukrainian relations” and declared the will to develop bilateral
economic and cultural relations.

Meanwhile, Prime Minister Yanukovych declared that his country wants to
cooperate in Poland in the field of energy safety.

He added that the Polish-Ukrainian government commission for economic
affairs should focus its work on energy security, economic cooperation,
construction, aviation and arms industry projects.

“Relations between Poland and Ukraine were and will remain to have a
strategic dimension,” said Yanukovych.

Jaroslaw Kaczynski said the Polish side is very keen on developing direct
contacts between Poles and Ukrainians and opening borders despite limits
stemming form EU regulations.

Later in the day, Prime Minister Kaczynski met with President Viktor
Yushchenko to discuss bilateral relations and “directions of Ukraine’s
policies.” The meeting was attended by Ukrainian Foreign Minister Borys
Tarasyuk.

The prime minister also held a separate meeting with former Ukrainian prime
minister Yuliya Tymoshenko.                       -30-

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10. KHARKIV PLANT IMPORTS FOUR ITALIAN PRODUCTION LINES

Volodymyr Obolonsky, The Ukrainian Times
Kyiv, Ukraine, Tuesday, November 14, 2006

KYIV – The Kharkiv-based tile plant has concluded a contract to import

four production lines from Italy, which are designed to make facing tiles for
walls.

According to Anatoly Chumak, chief engineer of the enterprise, the lines
have a capacity to produce 10 million square meters of tiles per year, and
their commissioning is scheduled for March-August 2007.

Production of tiles is energy-intensive because they are fired in gas
furnaces. However, the new production lines operate by energy-saving
technologies which enable a reduction of 30% in consumption of natural

gas, compared with similar equipment designed in Soviet times.  -30-
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11. UKRAINIAN INSULIN PLANT INDAR EXHIBITS THEIR PRODUCTS
          AT INTERNATIONAL DIABETES CONFERENCE IN DENMARK
                    More than one million persons in Ukraine have diabetes

Ukrainian Times, Kyiv, Ukraine, Tuesday, November 14, 2006

KYIV – The 42nd annual international conference on the study of diabetes
took place in Copenhagen from September 14 through September 17.

Representatives of world leading scientific-medical institutions who tackle
the problem of fighting against this disease, and enterprises manufacturing
medicines and equipment designed to help diabetics, as well as
endocrinologists participated in it.

Kyiv-based insulin plant Indar, together with the delegation of physicians,
represented Ukraine at this endocrinological forum. The  international
medical representatives had an opportunity to acquaint themselves with
achievements of the Ukrainian pharmaceutical industry.

The exhibition stand of Indar was an object of intense interest owing to the
wide range of insulin’s made by Indar, namely semi-synthetic and genetically
engineered insulins in vials and cartridges as well as a variety of
compounded forms of insulin preparations.

Both the drugs and information support of doctors and patients were well
received by scientists and physicians from Germany, Britain, France, Latin
America, Kazakhstan, Croatia, Latvia, Uzbekistan and Poland, among others,
who visited the Indar’s exposition. They called this approach to the problem
true care for people afflicted with diabetes in Ukraine.

At present, diabetes is one of the leading causes of death in most countries
as the great number of its complications inflicts the damage on various
organs and systems.

Among them are above all cardiovascular, kidney, eye and lower limb
diseases. Up to 80% of people afflicted with diabetes die from cardiac
pathology.

In Europe alone, diabetes mellitus afflicts about 25 million people and care
for them costs between 28 billion and 53 billion euros per year. The number
of diabetics increases annually by 5-7% and doubles every 15 years.

Also, this concerns Ukraine where more than one million persons who have
diabetes are registered today and their number is expected to quadruple in
20 years.

Natalia Zarudna, ambassador of Ukraine to Denmark, Yuri Gaidaev, deputy
health minister of Ukraine, Nikolai Tronko, director of the Komisarenko
Institute of Endocrinology and Metabolism, Yuri Karachentsev, director of
the Danilevsky Institute of Endocrine Pathology, and Volodymyr Pankiv, chief
endocrinologist of the Ukrainian Health Ministry, as well as experts and
endocrinologists took part in a discussion about prospects for the
manufacture of endocrinological preparations in Ukraine.

For more information, please contact Indar office: 5 Orositelnaya St., Kiev,
02099, Ukraine Tel.: +38 (044) 566-5301, fax: +38 (044) 566-3512, e-mail:
info@indar.kiev.ua, http://www.indar.kiev.ua

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12.  USAID TO ASSIST UKRAINE’S SCSSM IN STOCK MARKET
                                INFORMATION DISCLOSURE

Interfax-Ukraine, Kyiv, Ukraine, Wednesday, November  15, 2006

KYIV – Ukraine’s State Commission on Securities and Stock Market on

Tuesday signed a protocol on cooperation with the Agency for International
Development USAID (US) on the Capital Market Development project to
improve the system for disclosing information about the stock market.

“This year, for supporting the existing system of information disclosure,
the state budget allocated UAH 1.5 million to the commission, but less then
30-40% of this has been provided so far.

This project will allow the information disclosure system to progress to a
new stage, bringing it to international standards,” head of the commission
Mykhailo Nepran said during a press conference on Tuesday.

As USAID representative Ann D. Wallace reported, the project is to create a
commission database to store data from securities issuers. The data will be
available in real time at the SCSSm’s Web site.

According to her, USAID will provide the hardware and software needed by

the new information system. The equipment will be transferred to the
commission’s ownership, she said.

According to Wallace, the system will be free of charge both for issuers and
for investors, and will be available at all times.

Wallace did not name the exact cost of the project, but commission chairman
Anatoliy Baliuk estimated it to be worth up to $10 million.
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13. UNITED STATES GIVES UKRAINE EQUIPMENT FOR BIOSAFETY
 
Ukrainian News Agency, Kyiv, Ukraine, Tue, November 14, 2006
 
KYIV – The United States have handed Ukraine over equipment for providing
biosafety. US Ambassador in Ukraine, William Taylor, announced this to
reporters at a press conference.

The equipment in question was forwarded to the State Central Laboratory of
Veterinary Medicine in Kyiv. As to him, the supplied equipment costs USD
220,000.

In the Ambassador’s words, US rendered this equipment in reply to

Ukraine’s request to help fighting bird flu.

He also reported, that handing over of the equipment is made in the
framework of the US Department of Defense large-scale project for fighting
bioterrorism and preventing spread of pathogens.

The Ambassador also reported that the US Defense Department plans to

supply similar equipment to the central sanitary and epidemiological station of
the Health Ministry in Kyiv and the Institute of Experimental and Clinical
Veterinary Medicine of the Academy of Agricultural Sciences in Kharkiv.

As Ukrainian News earlier reported, in December 2005 the USA handed

Ukraine over with medical equipment and protective clothing worth USD
43,000 for fighting bird flu.                       -30-
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14.    UNITED STATES MANUFACTURER ASKING UKRAINIAN
 AUTHORITIES TO INTRODUCE PREFERENCES FOR INVESTORS
 
Tetiana Pleshyvtseva, Ukrainian News Agency
Kyiv, Ukraine, Friday, November 10, 2006
 
KYIV – Jabil, an American company that is building a large factory for
production of components for telecommunications equipment in a district
of Uzhhorod, is asking the Ukrainian authorities to introduce preferences
for foreign investors from January 1, 2007. The leadership of Jabil
announced this to journalists in Uzhhorod.

According to Philip Kostemal, the director-general of Jabil Circuit Ukraine,
the cancellation of preferences for all investors operating in free economic
zones in April 2005 has significantly complicated operations involving
production of imported components.

He stressed that even the partial reintroduction of the preferences in
November 2005 did not improve the situation because the processing of
documents for components that are imported and products that are 100%
intended for export involves complicated bureaucratic procedures.

The company is asking for simplification of the procedures for issuing
promissory notes for customs payments on components that are being

imported for production purposes from January 1.

Specifically, the company is asking the authorities to make it possible to
issue promissory notes for at least 180 days (instead of the current 90
days) and make the customs agency located at enterprises the sole holder

of such promissory notes (the documents are presently signed by several
officials).

Moreover, Jabil is calling for a reduction of the rate of the enterprise
profit tax from 23-25% to 16% and abolition of the 0.2% customs duty that
companies that export all their products are charged during export and
import of goods.

Jabil started operation in Ukraine in 2004. It presently leases premises
from the Yadzaki factory in a district of Uzhhorod. It started building the

first stage of its own factory (with an area of 26,000 square meters) in
September.

Founded in Detroit (United States) in 1996, Jabil owns 45 factories in 20
countries, where it produces electronic components for companies such as
Hewlett Packard, Philips, Alcatel, Nokia, LG, Ericsson, Whirlpool, Cisco,
Airbus, and others.

In Ukraine, Jabil produces components for information recording devices for
Hewlett Packard and assembles mobile telephones for one of the major
manufacturers.

As Ukrainian News earlier reported, Prime Minister Viktor Yanukovych
directed the Zakarpattia region’s Governor Oleh Havash in October to submit
proposals to the government on restoring the operations of the special
economic zone and priority development territory in the Zakarpattia region.

On September, the Cabinet of Ministers proposed that the parliament
reintroduce preferences in special economic zones and priority development
territories in 2007.                                       -30-
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15. DAIMLERCHRYSLER DEALER OPENS $15.9 MIL AUTOCENTRE

 
Business Digest, Sofia, Bulgaria, Wed, November 15, 2006

KYIV – Ukraine’s major automotive company Ukravto, the local partner of

U.S.-German carmaker DaimlerChrysler AG, has opened an 80 mln Ukrainian
hryvnia ($15.9 mln/12.4 mln euro) Mercedez-Benz autocentre in Ukraine
for sale and service of commercial vehicles, local media reported on
November 15, 2006.

The centre, the largest in eastern Europe, will offer all the models of
Mercedes-Benz commercial vehicles, vans, trucks, buses, Unimog trucks,

as well as original spare parts and after-sale service, the head of the new
complex, Anatoliy Vonogradov, explained.

The centre, named Atlant, has an area of 4,800 sq m and 35 vehicle spaces.
The facility is expected to recoup the investment in five to seven years.

A truck dealership and service centre is to be built in the western city of
Lviv by the end of 2006, and another two in eastern Zaporizhzhya and

Kharkiv in 2007, said Valeriy Anohin, the head of DaimlerChrysler’s official
representative Avto Capital.

(Editor’s note: Ukravto manages the automobile plant UkrZAZ, in eastern
Zaporizhzhya, which assembles kits for DaimlerChrysler’s Mercedes-Benz.)
(Alternative name: Ukrauto, Zaporizhia automobile factory, Zaporozhye,
Zaporizhzhya, Zaporizhia, Auto Capital, Kharkov) www.rynok.biz
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16. UKRAINE’S NATIONAL EXHIBITION & CONFERENCE IN THE USA
                       Ukraine’s Changing Place in the Global Economy
                         December 14th to 16th, 2006, Chicago Illinois
                                             www.ukrdzi.com/usa

Action Ukraine Report (AUR) #790, Article 16
Washington, D.C., Thursday, November 16, 2006

WASHINGTON – The government of Ukraine will hold their first National
Exhibition and Conference in the USA in Chicago, Illinois, at the Sheraton
Chicago Hotel from Thursday, the 14th to Saturday the 16th of December
2006.

The exhibition will host over 50 leading Ukrainian companies from the
aerospace, mining, metallurgy, machine building, chemicals, food processing,
light industries and consumer goods as well as the science and information
technology sectors.

It will feature everything from the world’s most efficient satellite
launcher to the world’s smallest nano-metric engine and will provide a
unique opportunity for US companies to capitalize on the rapidly
expanding economy and low cost production centre right on the eastern
edge of Europe.

With foreign direct investment already outstripping last year by 350%,
and with an economy growing at 6 to 8% a year Ukraine has become an
investment and production focus where skilled and highly educated labor
coupled with a close proximity to major European markets, a massive
pool of high technology and a domestic market of over 48 million are
making US companies reconsider previously held perceptions.
   “UKRAINE’S CHANGING PLACE IN THE GLOBAL ECONOMY”.
A highlight of the event will be a conference “Ukraine’s Changing Place in
the Global Economy”. The conference will discuss current issues in
Ukraine’s economic development and will ask searching questions including:

     [1] Can Ukraine link East and West?
     [2] Do foreign investors underestimate Ukraine?
     [3] What are the opportunities for US companies?
     [4] Perception verses reality of the Ukrainian economy?

The conference plenary session will spotlight the strengths and weaknesses
of modern Ukrainian economy and the prospects for bilateral trade and
successful foreign investment.

Top economists from Ukraine and world renowned institutions will present
their visions and forecast of the country’s economic development.

The interests of particular industries will be discussed at break out
sessions devoted to Ukraine’s vast agricultural potential, harnessing unique
information technologies, the strengthening financial sector and of most
interest Ukraine’s massive and as yet untapped resources in scientific and
technical innovation.

It should be noted that Ukraine used to produce over 40% of the technology
of the former Soviet Union including the majority of the space and defense
programs.

The goal of the event is to introduce the U.S. business community to the
present-day economic potential of Ukraine in order to establish mutually
beneficial platforms for trade, commerce and investment.

As part of this conference, participants will be presented with a schedule
of the best investment projects in Ukraine today, as well as an investment
climate overview from leading international consulting companies and those
US companies that have already invested successfully including senior
representatives of Cargill and Kraft and senior representatives of the US
and EU funded Science and Technology Centre in Ukraine.

Who should attend?
     [1] Business executives interested in above average profit margins.
     [2] Scientific and research institutes, production and experimental
          development companies, machinery and equipment engineers
          and technology developers.
     [3] Financial and investment companies, banks and financial
          institutions.
     [4] Chambers of Commerce, leading consulting and information
          companies

For further information and to register for the Exhibition and Conference
please refer to
www.ukrdzi.com/usa.

For additional information please contact: Elena Ivanova,
Project coordinator, helen@dzi.mfert.gov.ua.
Media enquiries to: Chicago: Sharon Omizek, Partners Ltd
Telephone: (773) 919 3875 / Fax: (630) 834 5068. partnersltd@core.com
Kyiv: Martin Nunn MCIPR, Whites International Public Relations
Telephone / Fax: (+38044) 494 4200; martin.nunn@wipr.com.ua.
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17. EBRD REAPS REWARDS OF INVESTMENT IN EASTERN EUROPE

By Stefan Wagstyl, Financial Times
London, United Kingdom, Tue, November 14 2006

Five years ago, Furshet, a Ukrainian supermarket company, was a
start-up with five stores worth $10m. Now the group runs a nationwide
network of 60 outlets for which the shareholders recently turned down
a bid of $500m (E390.5m, £263m).

Such spectacular gains are uncommon even in the fast-expanding markets
of the former communist countries of eastern Europe. But what is
particularly unusual in Furshet’s development is the central role
played by private equity – a form of finance normally associated with
advanced economies.

While many central and east European entrepreneurs are loath to sell
equity, Ihor Balenko, Furshet’s founder and president, decided his
newly established Kiev-based chain needed outside capital and western
know-how.

He turned to EVU Management, a Kiev-based investment company that
runs a private equity fund called Euroventures Ukraine, backed largely
by the European Bank for Reconstruction and Development.

The fund bought 25 per cent of Furshet for $2.5m – and has not
regretted its investment. It has earned $18.5m in cash and still
retains 10 per cent of Furshet, valued – on the basis of the rejected
bid – at $50m.

“We got involved with the right entrepreneur, at the right time, in
the right sector,” says Valeriy Schekaturov, EVU’s co-managing
partner. “We took a risk and got in early. But we have been rewarded.”

The EBRD, the multilateral bank for the former communist nations,
cites Furshet as an example of successful private equity in the
region. In a report published yesterday, it says private equity is
playing a growing role supplying capital and management skills. The
bank studied 44 funds in which it has itself invested and established
that these investors have raised a total of $4.6bn in capital for the
region, including $1.6bn last year.

In the 1990s, the EBRD was almost the only private equity investor –
for example, supplying 90 per cent of the $30m in the Euroventures
Ukraine Fund. Private investors are now becoming increasingly active
but the EBRD remains a dominant force, putting its capital mostly into
private-managed funds, as it has done from the outset.

Profitability is rising, says the EBRD. In 2005, a vintage year when
some big deals were completed, its private equity portfolio made an
82.6 per cent return, far ahead of the 33.8 per cent recorded by the
European Venture Capital Association (ECVA), whose members invest
mainly in western Europe (see chart).

The EBRD’s three-year average return is still high at 31.4 per cent.
The return since it started investing 14 years ago is considerably
lower, at 10.8 per cent. The bank says that progress in the 1990s was
held up by problems selling investments and by the impact of the 1998
Russia crisis. Now, profits are rising as is the time between
investment and selling out.

Henry Potter, an EBRD banker responsibly for private equity, says he
expects 2006 to be another good year for profits. “It’s a great
environment to sell companies in central and eastern Europe. There’s a
lot of interest from strategic investors.”

Mr Potter says central and east European companies are still cheaper
than west European businesses, when compared by measures such as

the ratio of asset values to profits. But the gap has narrowed as the
perceived risks of investing in the region have dropped, he says.

In its report, an annual economic survey of the region, the EBRD
forecasts the recent strong growth of the former communist states will
continue, with expected average increases in gross domestic product of
6.2 per cent this year and 5.8 per cent in 2007.

If the predictions are right, the region will by the end of this year
have recovered all the economic ground lost, in output terms, since
the fall of communism and see GDP reach 103 per cent of the levels of
1989.

But there are sharp differences among sub-regions, with central Europe
already enjoying GDP levels more than one-third higher than in 1989,
while the countries of south-east Europe have just returned to 1989
levels and the nations of the former Soviet Union still have a little
way to go. However, south-east Europe and the former Soviet republics
are closing the gap, growing faster than central Europe.

Foreign investment is forecast at $50.3bn for 2006, little short of
2005’s $53.8bn record. Central Europe continues to take the lion’s
share, with $22.1bn forecast for 2006, but south-east Europe has
increased its take sharply from $13bn in 2005 to a predicted $19.3bn.
Russia and other former Soviet republics (except for the Baltic
states) are attracting considerably less. In this sub-region, the
inflow is forecast to drop from $13.3bn to $8.9bn.

Transition Report 2006 – available from the EBRD via www.ebrd.com/pubs
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http://www.ft.com/cms/s/8f468a9c-7385-11db-9bac-0000779e2340.html
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18. PRESIDENT YUSHCHENKO CONSIDERS CABINET’S DECISION

         TO RESTRICT GRAIN EXPORTS AS INCOMPREHENSIBLE
 
Ukrainian News Agency, Kyiv, Ukraine, Wed, November 15, 2006

KYIV – President Viktor Yuschenko considers the Cabinet of Ministers’
decision to restrict grain exports incomprehensible.
Yuschenko announced this at a ceremony commemorating Farmer’s Day.
“In my view, [the decision to restrict grain imports] is incomprehensible,”
Yuschenko said.

According to him, agricultural producers have become again the victims

of steps that are connected not with the agricultural market but with failed
motivation. “And agricultural producers remain the victims,” he said.
Yuschenko stressed that agricultural producers needed to be granted
access to sales markets.

“The financial policies of the government should be aimed at creating
motivation and not covering some shortage,” he said.

He also said that the first deputy prime minister and the agricultural
policy minister explained to him on Wednesday that this issue should be
further studied until mid-November and taken off the agenda.

As Ukrainian News earlier reported, the Cabinet of Ministers believes that
the introduction of grain export quotas complies with the market principles
of the World Trade Organization.

Commenting on a statement by the ambassadors of the United States,

Germany, and the Netherlands about the possible negative impact of the
grain quotas on the negotiations on admission of Ukraine into the WTO,
Agricultural Policy Minister Yurii Melnyk said this was a subjective opinion.

According to the ambassadors’ statement, the Ukrainian government’s actions
directed at limiting export of wheat, barley, and corn are groundlessly
preventing normal operation of the market while the restriction of grain
exports is seriously damaging Ukraine’s economy, its investment climate,

and reputation as a reliable trading partner.

On October 11, the Cabinet of Ministers introduced quotas for grain exports
until the end of 2006 and discontinued its licensing.        -30-
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19.  FARMERS WILL BE NEW ‘HEROES’ AS DEMAND LOOKS

                  SET TO SOAR FOR FOOD, FIBER AND FUEL
         Real opportunities to export investment, skill & expertise to Ukraine

Fordyce Maxwell, Rural Affairs Editor
The Scotsman, Edinburgh, Scotland, Wed, 15th Nov 2006

DEMAND for food, fuel and fiber crops will see farmers “hailed as heroes”
within the next few years said an arable specialist yesterday.

Keith Dawson, the principal crop consultant with SAC, told the college’s
annual conference: “We can make things happen. The agricultural industry
will be hailed as heroes once again because there is a huge and growing
demand for food, fiber and fuel – and it can be delivered.”

A lean decade since the golden arable years of the mid-1990s had forced
growers to scrutinise costs and production methods, simply to survive, he
said.

But the mission for the 21st century was clear, he said, defining it as:
“Farmers must produce high yields at the lowest cost per tonne of a

product that the market wants in an environmentally responsible manner.”

He was also encouraging about prices that might be paid for these crops.
Referring to grain and oilseed prices in the high £90s and low £100s for the
first time in almost ten years, he told delegates to the conference at
Murrayfield: “We have seen a big rise in prices this year and I believe that
these will be sustained.”

With the familiar, but encouraging, message that challenges are
opportunities in disguise, Dawson used developments in eastern Europe –
where the SAC now has a wide range of advisory contracts – as an example.
HAVE BEEN IN UKRAINE MANY TIMES PAST TWO YEARS
He said: “I have been in Ukraine many times over the past two years where
land that had fallen out of production because of lack of capital is now
back in the hands of real farmers from the UK.

We have the opportunity to export investment, skill and expertise. There are
real opportunities for those who have both drive and vision.”

He went on: “There is no conflict between making farming pay and good
environmental performance. We no longer need to crop just to collect

support payments. Arable farming can still be profitable if high yields are
achieved.”

New technology will be crucial, he added, and monitoring of costs and
outputs essential. “Take the best independent advice,” he said, leaving no
doubt as to where that might best be found, “and I do believe that the
future is bright.”

Sandy Ramsay, head of the SAC consultancy team, told the conference that

big was not necessarily best for a livestock business. He said: “We have seen
a trend over the last five years to larger dairy, beef and sheep enterprises.

“But some of those businesses, as they become bigger, have seen little
change in profitability… and will find that the net worth of their
business is no higher than when the process of getting larger started.”

He emphasised, as many have done before, that recording and monitoring of
financial performance is essential, as is benchmarking against other similar
businesses, constantly trying to improve production and pick up new ideas.
———————————————————————————————-
Fordyce Maxwell, Rural Affairs Editor fmaxwell@scotsman.com)
LINK: http://business.scotsman.com/index.cfm?id=1688152006

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20. AGRICULTURE SHOULD BE TOP PRIORITY SAYS YUSHCHENKO 
 
UNIAN, Kyiv, Ukraine, Wednesday, November 15, 2006
KYIV – President Victor Yushchenko has attended a ceremony in Kyiv’s
International Center of Culture and Arts to present state awards to farmers,
who celebrate their professional holiday on November 19, according to the
President’s press-office.

In his speech, the President said agriculture had traditionally been one of
the leading branches of the national economy. Thus the revival of farming in
Ukraine, he said, was our top priority in the area of national security.

Mr. Yushchenko said the government was going to invest UAH 11 bln in the
development of the sector in 2007 and introduce special subsidies. It has so
far improved the investment climate, raised salaries to farmers and reduced
salary debts by 22%.

“It is our foremost obligation to pay people what they earn,” he said,
addressing government officials and heads of farming companies.

The President promised to control the implementation of next year’s
agricultural budget. “I assure you that the agricultural sector will be
efficiently supported,” he said.

Mr. Yushchenko said it was incumbent on the government to financially renew
the sector and promote its competitiveness. He criticized the government for
limiting the exportation of some agricultural products.

“The industry should have a maximum market of demand,” he said.  He also
said he could not understand why the government had decided to export less
grain.

“Financial policy of the country should be aimed at creating motivations not
covering some deficit,” he said, adding that First Deputy Premier Mykola

Azarov had recently assured him the problem would be resolved by the
middle of November.

As far as Ukraine’s WTO prospects, the President said the experience of

the neighboring countries proved that integration into this international
organization posed no threat to our agriculture but would stimulate its
development. He called on members of parliament to approve 21 WTO
bills, adding that it was “the issue of national significance.”

“If Ukraine does not use its chance to join the WTO – and there is such a
chance until December 21 – it will lag in this direction many more years,”
he said. Mr. Yushchenko also said it was important to legalize the
agricultural business and institute liberal reforms in the sector.

First Deputy Premier Mykola Azarov, Agriculture Minister Yuriy Melnyk
and Secretariat Chief of Staff Viktor Baloha attended the event.
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21. LITHUANIAN PRES BACKS UKRAINE’S PRO-WESTERN POLICIES

Associated Press (AP), Tue, Kyiv, Ukraine, November 14, 2006

KIEV — Lithuania’s president Tuesday pledged his country’s continuing
support for Ukraine and its pro-Western policies, as Ukraine’s government
faces a growing internal feud over the speed and direction of those
policies.

“Lithuania will further support the path of democracy and reform which
Ukraine is following and the goals which Ukraine has, that is, the European
path, the European-Atlantic path,” President Valdas Adamkus said during a
joint news conference with his Ukrainian counterpart, Viktor Yushchenko
.

During his three-day visit to Ukraine, Adamkus, who helped mediate during
the 2004 Orange Revolution that helped bring Yushchenko to power, was also
scheduled to meet Premier Viktor Yanukovych and other top lawmakers.

Yushchenko has made membership in the European Union and the North

Atlantic Treaty Organization priorities for Ukraine.

Along with neighboring Poland, Lithuania has been one of ex-Soviet
republic’s loudest cheerleaders, encouraging its efforts to move out
Russia’s shadow. Both Lithuania and Poland are members of the E.U. and

NATO.

But Yanukovych, who returned to the country’s No. 2 job in August, has
indicated he supports putting Ukraine’s bid to join NATO on hold and making
improving frayed ties with Moscow a priority – moves that have caused
friction with Yushchenko.

Most Ukrainians, particularly in the largely Russian-speaking east and
south, remain deeply skeptical of NATO – due partly to lingering Soviet-era
skepticism as well fears that NATO membership would harm relations with
Russia.

Yushchenko Tuesday insisted that all political parties have the same
strategic goals for Ukraine.  “No changes will take place in Ukraine’s
foreign political course, including integration into the European Union as
well as integration into the European-Atlantic defense union,” he said.
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22.                       PRESIDENT VIKTOR YUSHCHENKO:
  “HAVING COME TO POWER, YOU SHOULD HAVE WIELDED IT”
   Embarrassing questions on the eve of the Orange Revolution anniversary

The Day Weekly Digest #36, Kyiv, Ukraine, Tuesday, 14 November 2006

Take me across the maidan,
Where I used to sing all the songs I know.
I will sink into silence and pass away.
Take me across the maidan.
Vitalii KOROTYCH

One year ago they could still get together. It was “the same” weather and
“the same” people, and even Viktor Yushchenko, the “key to the door of
freedom” (Yurii Lutsenko’s metaphor), was in league with them. And
although they enjoyed less trust, they still stood a chance of improving the
situation.

Today, having lost almost everything, they continue to write various
“scenarios” of a certain festive period. Roman Bezsmertny was the first to
publicize his notes.

He said “a scenario of Freedom Day is being completed,” which has
Yushchenko “coming onto the stage and addressing the Maidan.” To tell
the truth, the Presidential Secretariat was very surprised by Bezsmertny’s
plans.

As it turns out, they are drafting a scenario of their own. So far only
Yulia Tymoshenko is not drafting anything, although she has already
announced that she will never appear on the same Maidan together with
Bezsmertny.

One month ago Tymoshenko’s fellow party man Mykola Tomenko suggested
that the Ukrainian people should celebrate the Orange Revolution’s second
anniversary without politicians.

“The Orange Revolution is a social event, not a political one. But since the
politicians failed to meet the people’s expectations, the people should mark
this event without the former,” he said. There is a lot of common sense in
these words.

We asked The Day’s experts if it is a good idea to observe the Orange
Revolution’s anniversary now. We also posed two eternal questions:
who is to blame for what happened and what is to be done?

[1] Prof. Yuri SHAPOVAL, Ph.D. (History):
“Of course, in the conditions of the current diarchy, it is improper and, I
would say, a bit shameful to noisily celebrate the Orange Revolution
anniversary.

The Donetsk team hates the Orange Maidan, while those who sang with their
hands on their hearts on Independence Square in November 2004 have now
betrayed that Maidan. They have devalued the Maidan, its slogans, and
values.

“Yet, in spite of this devaluation, some will be marking the anniversary –
those who stood on the Maidan in November 2004 not FOR the personal
victory of the current president of Ukraine but AGAINST the former
leadership, against deceit, rigging, and falsification.

I strongly believe that the Maidan taught our society, especially
intellectuals, a lot of things – first of all, to rely on our own strength.
It taught us not to fear the government and to speak the truth.

This is the most important lesson to be remembered as often as possible,
irrespective of the anniversary of those dramatic and fateful events.

“From the perspective of the fall and early winter of 2004, we are now
living through a counterrevolution. The Orange-camp windbags (the do-gooders
who seemed to be forming an Orange coalition for three months but never
succeeded) are certain to lose to the ‘tough guys’ from Donetsk. Why?

Because the latter know what they want, whereas the Orange ones are unlikely
to understand what they should have done and what they should never do from
now on.

Naturally, President Yushchenko is the one who bears the greatest blame,

for he has forgotten, among other things, the axiom, ‘The retinue plays the
king.’

It is Yushchenko to whom the question ‘What is to be done?’ should be
addressed above all. Well, I am prepared to prompt him with the answer:
‘Having come to power, you should have wielded it.'”

[2] Myroslav POPOVYCH, philosopher, corresponding member of the National
Academy of Sciences of Ukraine, and director of the Institute of Philosophy:
“I think celebrations are out of place right now. Of course, all the gains
of the revolution have not been lost – freedom still exists. But, still,
there is nothing to exult over.

“Who is to blame? – naturally, specific people. But I would not like to pass
judgment now. As for ‘What is to be done,’ this is really an important and
interesting question.

We have in fact only one way out: to go to the polls and elect those who are
worthy of being supported. No public rallies or mass protests will ever
produce a good result. One should just do one’s everyday work.

“Undoubtedly, the Orange Revolution was one of the brightest episodes in the
lives of many people. This applies even to me, although I am not a young man
at all and have been around. The same applies to my granddaughter and my
whole family: this was a fairy tale.

“It is also very important to understand that it was not some specific
people or political forces but democracy in the finest sense of the word
from which the Maidan drew its true inspiration.

It was democracy that gave a springtime flavor to that fall event. And it is
unforgettable that absolutely different people stood up for freedom.”

“But, unfortunately, this also caused the ensuing rift. The former allies
stopped understanding each other. But it is not their lack of understanding
that will determine our future but the call to freedom that we all heard at
the time.”

[3] Dmytro OSTROVERKH, World War II veteran, retired lieutenant-
colonel (Kharkiv):
“I think we should celebrate the second anniversary of the Orange
Revolution. Otherwise, people will gradually forget what they fought for.

Ordinary people need this celebration for mental equilibrium: some of them
still hope that the Orange Revolution will continue and have a logical end.

As a matter of fact, the revolution took place but produced no positive
results. The coalition and almost the entire cabinet are devoid of ‘Orange
people.’ Only the president remains, but he has no real impact on the
situation, especially in the economy.

“If there is no celebration, this will adversely affect most of the people
who still believe in the ideals for which they fought. Sooner or later, this
will find its expression in the next elections.

Then this revolution will have different consequences. In my view, the
people long for what they have not yet achieved, so a true revolution is
still ahead.

One should not necessarily organize a gaudy extravaganza – the main thing is
that people should become aware that the current society and circumstances
are the consequences not of the Orange Revolution but of its failure. People
should not become disillusioned.

“Who is to blame for what happened? – the Orange people and the opposition.
The revolutionary leaders failed to turn their power to advantage, put
things in order, and put the revolution’s ideals into practice. Time was
lost and no concrete actions were taken.

The opposition also bears the blame, but to a lesser extent: they took
advantage of the Orange government’s mistakes, and they did not even have
to make a major effort to form a majority in both parliament and the
cabinet, as well as in the regions.

They had not even dreamed of receiving such a gift. “In Kyivan Rus’ times,
princes could not come to a common conclusion even when they were being
attacked by the enemy.

Now, too, the Orange leadership has missed its chance. To implement the
Orange Revolution’s gains, there must be a strong leader who would sometimes
even have to go against the Constitution in order to achieve the goal that
the people set on the Maidan. Yushchenko proved to be too soft a president.

“If our legislation is to be strictly obeyed, there will be no Orange
revolutions or changes. Everything is so tangled and eroded by corruption
that nothing can be achieved in a lawful way.

We must wait for the time when strong-willed and strong-spirited people come
to lead the Orange movement. There are such people in PORA, the BYuT, and
some other political forces.

Our people are now so inactive politically that they will do nothing for
themselves in the provinces until the highest echelons of government launch
tough actions to implement the Orange ideas.”

[4] Prof. Olena STIAZHKINA , Ph.D. (History), Department of the History
of the Slavs, Donetsk National University:
“A holiday is always a good thing. People adopt a reverent attitude to the
past in which they played the main role.

Some people, who are more sentimental, observe ‘the day of the first date,’
while others, who are less sentimental, wait for Father Frost on New Year’s
Eve.

“For many people the Maidan is the first date with themselves, when they
saw themselves in a new capacity; in a way, it is also expectation of Father
Frost (not to be confused with Oleksandr Moroz (‘frost’ in Ukrainian –
Ed.)).

“Is it necessary to celebrate? I think so. Of course, the Maidan is not a
holiday for everyone. Such things do happen. For example, eastern Ukraine
loved International Women’s Day, while western Ukraine preferred Mother’s
Day. But did this make somebody worse? The point is that a celebration
should not be an excuse for a quarrel, for a new rift.”

[5] Volodymyr HAZIN, Associate Professor, Kamianets-Podilsky State
University:

“Of course, in the current conditions it is impossible to organize
celebrations of the Orange Revolution’s anniversary. And is this really
necessary?

[a.]  “First of all, two years ago the Maidan brought together only part of
Ukrainian society (although, in my opinion, the most progressive and
patriotic one).

And no matter what we think about the then and current ‘white-and-blue’
electorate (supporters of Yanukovych – Ed.) it has the right to have its own
outlooks and vision of those events, which, naturally, it considers anything
but festive.

[b.] Second, the power is now, unfortunately, in the hands of those who are
striving not to celebrate the fact of the Ukrainian nation’s awakening but
to take revenge and erase the memories of the triumph of the spirit as soon
as possible.

[c.] And third, our leaders’ attempts to mark a certain date officially very
often turn into a farce: officialese only kills the best ideas and
intentions.

“In all probability, the Orange Revolution anniversary is a holiday for
those who thronged the streets of Kyiv and other cities – from Lviv to
Kamianets-Podilsky and Chernihiv – for those who managed to overcome
their inherent fear of the authorities and dared to rise up against lies,
corruption, and contempt for our people.

In those days people took to the streets not just for Yushchenko,
Tymoshenko, Poroshenko, Moroz, and Co.

What brought the people together was a sincere desire finally to see
Ukraine a free, democratic, and affluent state. All the people felt pride in
themselves and the person standing next to them.

“Today, the Maidan electorate is deeply disappointed – of course, not with
the ideals for which they stood, defying the bitter cold and snow.

They are obviously disgruntled with the fact that the actors on the Maidan
stage have not met the expectations and hopes of this electorate. The
enormous vote of confidence and major opportunities for implementing the
proclaimed slogans were forgotten and stupidly lost.

“Maybe there should be a holiday – but only a holiday for those who were the
revolution’s chief motive force. This should be a stern warning to those in
power today. They should understand that Ukrainians are a proud and
freedom-loving nation.

“I think the ‘Orange events’ of 2004 were just the first stage of the
revolutionary changes that are bound to engulf Ukraine. Only then will we
understand the historic significance of the Maidan, and this holiday will
assume the exalted place that it truly deserves, like Bastille Day in the
history of France.

“Current events should be a lesson for everybody. There’s nothing you
can do about it: it is our destiny to learn from our own mistakes.” -30-
————————————————————————————————–
LINK: http://www.day.kiev.ua/172333/
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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23.             CONSTITUTIONAL CRISIS LOOMING OVER
                              KIEV POWER-SHARING DEAL

By Roman Olearchyk in Kiev, Financial Times
London, UK, Tuesday, November 14 2006

Ukraine is heading towards a constitutional crisis following the agreement
by parties loyal to President Viktor Yushchenko to push for a return to
stronger presidential rule.

A resolution adopted at the weekend by Our Ukraine, the president’s party,
calling for the reversal of reforms adopted during the 2004 Orange
Revolution threatens to undermine – perhaps fatally – the governing
coalition of Viktor Yanukovich, prime minister.

Under the original reforms, which took effect this year, powers were shifted
from the presidency to parliament in a bid to limit the authority of Mr
Yushchenko. Our Ukraine and MPs loyal to Yulia Tymoshenko, the main
opposition leader, are expected to lodge an appeal with the constitutional
court within weeks.

As well as undermining Mr Yanukovich’s authority, a repeal of the reforms
would boost Mr Yushchenko, who has struggled recently to prevail with his
pro-western agenda.

After an inconclusive parliamentary election earlier this year followed by
months of fraught coalition negotiations, Mr Yushchenko eventually accepted
the nomination of Mr Yanukovich as premier.

The cohabitation of the two rivals, who opposed each other in the 2004
presidential campaign, has not been an easy one.

Deep rifts between them on foreign and domestic policy resurfaced as Mr
Yanukovich focused on reviving relations with Russia, the main supplier of
energy to the big business interests that make up a significant part of his
power base.

Increasing presidential authority could rejuvenate the pace of western
integration and liberal economic domestic reforms adopted by Mr Yushchenko.
His supporters claim these efforts have been derailed by Mr Yanukovich’s
governing coalition.

Mr Yushchenko yesterday said Ukraine remained on course to join the World
Trade Organisation next year. “If in December we have a positive report from
the working commission, then we may say that in the first quarter of next
year the issue of Ukraine’s membership of the World Trade Organisation may
be considered [by the WTO],” he said.

The president’s supporters have pushed for Ukraine to join the WTO ahead of
Russia, arguing that membership would give Kiev leverage over Moscow in
energy and trade talks.

However, the stand-off over the issue of presidential authority threatens
months of political instability.

In an interview with the FT, Ms Tymoshenko predicted that there was “more
than a 50 per cent” chance that the constitutional court would return powers
to the president. Mr Yanukovich has said that a repeal would be illegal. Mr
Yushchenko has refrained from asking for more powers, pleading instead for
legislation clarifying his authorities.

Transforming Ukraine into a parliamentary-presidential state was intended to
bring stability to the government and prevent a repeat of the authoritarian
rule experienced under Mr Yushchenko’s predecessor, Leonid Kuchma.

Mr Yushchenko’s supporters, however, believe the political reforms were
passed in violation of constitutional procedures and have failed to bring
stability.

Under the current rules, Mr Yushchenko can veto laws. He also claims the
right to cancel certain government resolutions. Mr Yanukovich’s government
has disputed this authority.                           -30-
——————————————————————————————————-
http://www.ft.com/cms/s/39c5e44a-7386-11db-9bac-0000779e2340.html

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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
24.       DETERMINING THE FUTURE OF UKRAINE’S PAST

ANALYSIS & COMMENTARY: By William Gleason
The Ukrainian Observer magazine website
The Willard Group, Kyiv, Ukraine, November, 2006

 
The struggle for the heart and soul of Ukraine is being waged not only on
the ground, but among political pundits and partisans far from Ukraine as
well.

On August 9, for example, at the Center for Strategic and International
Studies (CSIS) in Washington, D.C., three seasoned experts on Ukraine –
Anders Aslund, Taras Kuzio, and Steven Pifer – debated the meaning and
impact of the rapidly unfolding events in Kyiv during the summer of 2006.

The debate was spirited and intense, as were the numerous questions – and
answers — from the overflow audience, many of whom brought expert
credentials of their own to the exchange.

The twists and turns of Ukrainian politics over the past two years, a
phenomenon likely to continue indefinitely, endow the CSIS and similar
exchanges with singular meaning: they could well be described as the opening
salvo of a prolonged give and take over how the Orange Revolution will be
remembered.  Or, to put it a bit differently, we are engaged in an exchange
over the future of the past.

Most pasts, collective as well as individual, assume multiple meanings over
time because unfolding events compel historians and ordinary people alike to
continually revise their assessment – their memory – of what in fact
happened.

And in select instances, such as the Soviet Union, quarrels over the future
of the past entail fundamental if not horrendous consequences for their
participants.

One need only recall what the Soviet leader Joseph Stalin did in the 1930s
to his former Bolshevik comrades (i.e., Bukharin, Kamenev, Zinoviev) because
of his savage determination to rewrite the ‘history’ of the 1917 Russian
Revolution.

No one is suggesting a parallel between Stalin’s murderous historical
revisionism and the current verbal fisticuffs concerning the larger meaning
of the Orange Revolution.  Nevertheless, two points stand out, one
historical, the other political in nature.

The historical point is often overlooked, but merits scrutiny because,
unless one believes that the Orange Revolution has completely run its
course, it must be acknowledged that this revolution, like all modern
revolutions, is in its infancy.

Consider the following example – the American Revolution.  In 1783, two
years after the defeat of Lord Cornwallis at Yorktown, the American Republic
was all but stillborn, bedeviled on all sides as the thirteen new states
squabbled nastily over currency controls, borders, and trade protectionism.

Four years would pass before the Constitutional Convention ushered in the
outlines of the new nation.  George Washington, Commander of the Colonial
Army during the revolution, bade farewell to his troops in 1783, returning
in grand fashion to Mount Vernon to pursue his original calling as a
plantation farmer and overseer.

Imagine, then, making final or semi-final judgments about the meaning of the
American Revolution in 1783, judgments soon to be bulldozed by events yet
foreseen or imagined.  Ditto the story for the Russian Revolution in, say,
1919, or the French Revolution in 1791.

Histories claiming a definitive interpretation of those revolutions at an
early stage would have been jettisoned within months of their publication.

Even more noteworthy are the political ramifications of the ongoing debate.
Stated simply: how Western policymakers choose to interpret the Orange
Revolution will guide their diplomacy toward Kyiv for years to come.

If, for instance, the consensus on the Orange Revolution in 2008 is that of
a failed or failing state on Yushchenko’s watch, the conclusion may well be
drawn that Ukraine has missed a grand opportunity to be taken seriously by
the international community.  That conclusion would entail enormous policy
consequences in Europe and North America.

These factors – the infancy and unpredictability of Ukraine’s unfolding
revolution – punctuate the drama of the current guessing game.  In effect,
analysts are saying that the stakes are too high to sit back and wait for
the dust to settle.

And they are right: Ukraine’s geopolitical significance, derived in good
measure from its role as an energy conduit between East and West, between
Russia and Europe in other words, precludes detachment.  Policymakers
need information and insight, however imperfect, on which to act.
                           TWO SCHOOLS OF THOUGHT
What, then, does matter to Western observers about Ukraine in 2006?
At the risk of simplification, two schools of thought have coalesced.

One school, here labeled the cautious optimists (with the accent on
cautious) argues that, notwithstanding the return to power of the
much-reviled (in the West) Viktor Yanukovych, Ukraine is a democracy,
no mean achievement when placed alongside Russia’s headlong slide into
semi-autocracy.

The other school, here labeled the pessimists, views much of the past twenty
months as a near disaster that threatens to undo the tentative gains of
2004.
                                     FOR THE OPTIMISTS
For the optimists, what matters is not who came out on top in the
parliamentary elections of 2006, but how that victory was achieved and what
it might portend for Ukraine over the next decade.  Here, they insist, the
list is impressive:

[1] The freest and fairest election in Ukrainian history (the 2006
parliamentary balloting);
[2] A genuine give and take between rival factions within the parliament on
the road to the formation of a new cabinet of ministers in August 2006;
[3] A free media that stand in stark contrast to the Kuchma era, a media
capable of keeping the spotlight on the Yanukovych government;
[4] A lively and vociferous opposition headed by the irrepressible Yulia
Tymoshenko, that will not disappear and may even grow if Yanukovych
falters.
                                 FOR THE PESSIMISTS
For the pessimists, the spotlight on institutions is delusional at best.

[1] Corruption remains endemic.
[2] Yushchenko shows scant sign of sustained vision or leadership at a
moment of great potential peril, given Ukraine’s energy vulnerability.
[3] The Communists, unalterably opposed to a free market economy and
championing intimate ties with Russia, are back in the government.
[4] And the likelihood of an external carrot in the form of possible EU
membership for Ukraine is receding at mach speed on the horizon.

What can be said about these two interpretative frameworks?  Again, at the
risk of over generalizing, the optimists stress process and institutions
whereas the pessimists stress personality and the centrality of individual
action in history.

For the optimists, free elections and an independent media are weightier
than Yushchenko’s abysmal leadership.

To which the pessimists counter that Yanukovych’s final success in 2006 in
forging a government coalition represented the prevalence of personality
over process – in this case, the triumph of pure greed and bribery from top
to bottom within the ranks of the new cabinet of ministers.

Ironically, despite their seeming irreconcilability, optimists and
pessimists join hands on several key concerns.  Perhaps mindful of the
timing of the debate – the fact, as noted above, that the Orange Revolution
is less than two years old — both sides phrase their conclusions
tentatively and carefully.

On substantive matters, both sides agree that Tymoshenko’s role as
opposition leader could be crucial, the optimists because it may stiffen the
democratic process, the pessimists because her flamboyant character
exemplifies the role of charisma in Ukrainian life.

Both sides, finally, anticipate a muckraking frenzy for the media, the
optimists because newspapers and TV wish to avoid the lockstep mentality of
the Kuchma decade, the pessimists because media owners (oligarchs for the
most part) will play a brutal round of political cat and mouse.
                                TWO SALIENT FRONTS
In the end, however, these agreements are overshadowed on two salient
fronts.

[1] The first, mentioned earlier, goes to the heart of the political
game in Ukraine – to wit, can extralegal or illegal behavior at the tactical
level subvert positive changes at the strategic level?

The optimists are convinced that Ukraine’s institutional architecture has
morphed sufficiently to yield a genuine checks-and-balances system
between the president, prime minister, and parliament.

Imagine the difference, one optimist intoned, if 2004 had failed to produce
a constitutional change of the first order: Ukraine would have President
Yanukovych rather than President Yushchenko, with all that implies for
foreign policy and Ukraine’s international profile.

Pessimists demur, insisting that the institutional changes are fragile which
leaves the door open for shenanigans and personal vendettas to trump
everything else.  In addition to bribery, party discipline is weak which
produces frequent defections and crossover alliances within the parliament.

The Yushchenko-Tymoshenko rivalry that detonated the Orange Revolution
in 2005 continued to wreck havoc in 2006 and played a decisive role in
Yanukovych’s triumphant return to power this year.

Whereas the first disagreement is primarily conceptual and intellectual in
nature, the second argument is leavened with emotion.
   ARGUMENT TURNS ON RUSSIA’S IMPACT ON UKRAINE
[2] The argument turns on Russia and its presumed impact on Ukraine.  For
some pessimists – a portion of whom are North American Diaspora originally

from Western Ukraine with strong nationalist sentiments – Yanukovych’s
pro-Russia orientation dooms Ukraine to Kremlin manipulation and
skullduggery.

The sense of outrage bordering on betrayal is palpable at times, with
certain Diaspora hurling accusations of “sellout” at Yushchenko along with
dark murmurings that the “real Ukrainian revolution” is just offstage,
waiting for its final cue.

Optimists, while not discounting the Kremlin capacity for mischief, play
down the Russian threat.

[1] First of all, they contend, Ukrainian oligarchs, including the richest
oligarch, Rinat Akhmetov of Donetsk, have stressed that their future lies
with western markets and investments, a view certain to resonate with the
new government.

[2] Furthermore, Yanukovych, regardless of where his political sympathies
might lie, will defend the interests of his big business constituency from
Eastern Ukraine against possible Russian encroachment if for no other reason
than immediate self-interest and survival.

[3] Finally, optimists conclude, the Orange Revolution has opened up a
veritable chasm between the two cultures: in Russia, so the line of argument
goes, the price of moving forward is forgetting the past whereas in Ukraine
it is precisely the opposite – forward movement ultimately will be defined
by which past becomes the accepted one for political elites and the general
population.
        DEBATE ABOUT FATE OF ORANGE REVOLUTION
All of which brings us back by way of summation to the central thread of
this essay: that the debate about the fate of the Orange Revolution is just
beginning because Ukrainian political culture for the first time is on full
display for everyone to see.

That is the real meaning of the 2004 and 2006 elections – for the first time
since 1991 and independence from the Soviet Union — Ukrainians are in the
midst of deciding who they truly are.

Observers of the process may and obviously do disagree about what they see
and what conclusions should be drawn from the review. But no one who knows
anything about Ukraine should dispute that this nation and this people are
very much works in progress.

Maybe they will not emerge standing in ways that we in the West recognize or
understand very well but, if so, that should not shock us unduly.

History has not been kind to Ukraine.  Centuries of near total immersion in
surrounding empires and states have left their mark, with deep internal
fissures over first principles.

Ukraine’s achievement today is its willingness to examine these fissures
openly in the political arena and in the larger context of the Orange
Revolution.  The fact that the examination has begun (2004, 2006) and might
continue is encouraging, but beyond that little can be meaningfully noted at
this juncture.

Perhaps the only thing that can be said with finality, given Ukraine’s
peculiar and longstanding past of cultural cleavages and regional divides,
is the likelihood of greater political zigs and zags.

It is that probability that may have prompted former Ambassador Steven

Pifer to exclaim at the CSIS session in August “the next five months may
contain as many surprises for Ukraine as the past five months.”

Perceptive words indeed.                                   -30-
————————————————————————————————-
William Gleason, Ph.D., is a Washington, D.C.-based historian specializing
in Russia, the former Soviet Union and Eastern Europe. He earlier was a
Fulbright Scholar at Kyiv-Mohyla University in Kyiv.
————————————————————————————————-

LINK: http://www.ukraine-observer.com/
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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25.       THE UNAPPREHENDED EVIL OF COMMUNISM
                          IN CONTEMPORARY UKRAINE
                           The necessity to decommunize Ukraine.

By Oleksandr MUZYCHKO, Ph.D. (History), Senior Research Fellow,
Regional Branch of the National Institute of Strategic Studies in Odesa
The Day Weekly Digest #36, Kyiv, Ukraine, Tuesday, November 14, 2006

ODESA – On Nov. 7 representatives of right-wing forces held a rally on
Mykhailivska Ploshcha, demanding a ban on the Communist Party of Ukraine,
the removal of all symbols of the communist regime and monuments to its
leaders from the territory of Ukraine, and the recognition of the Holodomor
as an act of genocide against the Ukrainian nation, with compensation paid
to its victims by the Russian Federation.

“On the strength of the Resolution of the Parliamentary Assembly of the
Council of Europe of Jan. 25, 2006, we demand that the Supreme Court of
Ukraine ban the Communist Party of Ukraine as a direct successor of the
CPSU.

With this goal and acting on behalf of the Ukrainian people, we are bringing
legal action against the CPU to the Supreme Court of Ukraine,” read the
message carried by the rally participants.

Below The Day offers the views of historian Oleksandr MUZYCHKO on the
necessity to decommunize Ukraine.

At first glance there is nothing in common between the dates of Nov. 7 and
Nov. 21. On Nov. 25, 1917 (New Style: Nov. 7) troops supporting the Russian
Social Democratic Workers Party (Bolsheviks) overthrew the Provisional
Government in Petrograd and seized power.

In 1917-1922, the Bolsheviks blazed a bloody trail through nearly the entire
former Russian empire, including Ukraine, to assert their rule. In doing so,
the Bolshevist communists skillfully exploited the basest mob instincts,
relied on criminal elements, and applied the tactic of terror. During the
existence of the USSR the victors’ truth reigned supreme.

The “Great October Socialist Revolution” played the leading role, having
allegedly made many peoples happy, but failing to make the rest of mankind
happy only because of the resistance of evil forces. Therefore, the history
of the Soviet communist state began on Nov. 7.

 MAIN CRIMES PERPETRATED BY COMMUNIST REGIME
The main crimes perpetrated by the communist regime against Ukraine are
there for all to see:

(1) Suppression of the Ukrainian national democratic revolution in 1918;
(2) Terror against the Ukrainian peasantry in 1919-1921 (“military
      communism”);
(3) Annihilation of the Ukrainian intelligentsia in the late 1920s and
     throughout the 1930s;
(4) Mass terror against ordinary citizens in the 1930s;
(5) Three Holodomors targeting the Ukrainian peasantry: 1921-1923,
     1932-1933, and 1946-1947;
(6) Assassinations of Ukrainian emigre leaders (Petliura, Konovalets,
     Bandera, Rebet, etc.) which was a manifestation of international
terrorism;
(7) Terror against the population of Eastern Ukraine in 1944-1945;
(8) Terror against the population of Western Ukraine in 1939-1941 and

     1944 through the 1950s;
(9) Liquidation of the Ukrainian Insurgent Army;
(10) Persecution of the Ukrainian intelligentsia in the 1950s-1980s;
(11) Condemning many Ukrainians to death in Afghanistan in the 1970s-1980s;
(12) Persecution of the Ukrainian Church almost throughout the entire
       existence of the USSR;
(13) Instigation of a rift between Ukrainians in the Ukrainian SSR and the
       Diaspora;
(14) Isolation of Ukrainian studies in the humanities from the best works
       the world had to offer.

This far from complete list of communist crimes in Ukraine does not end in
1991. The communists, together with other related parties, are splitting
Ukrainian society along the fictitious East-West line, and are still seeking
to establish control over Ukrainian historical memory and culture.

Many people associate the true destruction of the communist system with the
events on the Maidan, which began on Nov. 21, 2004. One of the leading
Maidan ideas was “lustration,” which in the broader sense means cleansing
the political system of old functionaries whose mentality was formed in the
Soviet period, and rejuvenating personnel on all levels.

However, after the Maidan the president and his associates embarked on the
road of all-forgiveness. Today it is clear that they moved in the wrong
direction. The old cadres have not understood or learned anything new.

Gaining their revenge, once again they are dragging Ukraine into the Soviet
stables as a “fraternal” country while hating all things truly Ukrainian,
national, and new. Thus, the ultimate end of the Soviet epoch is being
postponed indefinitely.

The paradox is that the greatest manifestation of civic activity and
democracy in Ukraine’s latter-day history ended with the communists
returning to power. The revenge gained by the anti-Ukrainian forces, among
them the heirs of Lenin’s idea, is complicating the task of cleansing this
country of communist relicts.

Even in noncommunist quarters they are still trying to measure the balance
between positive and negative things about communism, while similar
discussions about Nazism are considered seditious.

However, this was a victory that one twin scored over the other, and it
reaffirmed the oppressed status of the peoples within the USSR. Our
citizens, even patriotic-minded ones, have still not recognized communism as
evil incarnate, the consequences of which surpass those of Hitler’s Nazism.

On Nov. 6, 2006, at 7:00 p.m. two hosts on the New Odesa Channel (which
claims to be this city’s number-one intellectual channel) did their best to
demonstrate a tolerant attitude to people who still consider Nov. 7 a
holiday, the anniversary of that Great October Socialist Revolution.

In fact, they failed to demonstrate intelligence, good manners, tolerance,
or even basic knowledge of history, civic consciousness, or patriotism. This
is in fact what modern exponents of Soviet ideology lack.

The female host commiserated with those individuals who have been deprived
by the state of the opportunity to celebrate Nov. 7 on the national level.
The other host called for understanding these people the way people who
profess different religions can understand each other.

Both arrived at the conclusion that it is a holiday for seniors, as though
no old people were ever opposed to the Bolshevik heritage; as though there
were no significant anticommunist tradition in the history of Ukraine.

The other Odesa TV channels and other media in southern and eastern Ukraine
most likely interpreted the historical significance of Nov. 7 along the same
lines. Few people will recall that for true Ukrainians Nov. 7 is the day of
remembrance of the victims of communist repressions.

The Odesa TV program reflects the mentality of many Ukrainian citizens whose
concepts of Soviet realities are derived from films and stories recounted by
war veterans (mostly those who served the regime). Worst of all, these
concepts are not rooted in Ukrainian centrism, i.e., reflections on what
communism has brought Ukrainians, but in the general Russian attitude.

The television program also reflects the state of the Odesa media and their
cultivation among viewers of superficial, often Ukrainophobic, perceptions
of important pages from the history of Ukraine.

When we hear commiserations every year about elderly people being deprived
of May 9 and Nov. 7, we cannot help wondering: who are these people? What
roads in life did they take? Were they involved in the mass repressions of
the Stalinist era or in the web of secret collaborators under Brezhnev?

Does one have to love and respect them a priori simply because they are old?
What about the victims of communist repressions and their moods?

CAUSE OF FAILING TO RECOGNIZE THE COMMUNIST EVIL
What is the cause of the phenomenon of failing “to recognize the communist
evil, and not only in Ukraine but elsewhere in the world? Among other
reasons, the French scholar Alain Besancon names the following factors:

1. Nazism is better known than communism because the Allies opened the
doors of all the closets with skeletons and because many European nations
knew about it from their own experience.

Here it should be noted that many contemporary Ukrainian nationals, mostly
of Russian parentage, were resettled in Ukraine in the second half of the
20th century.

On the one hand, this resulted in their having no historical memory about
events in Ukraine; they did not suffer from communism as much as

Ukrainians did. On the other hand, they benefited from the communist
system to a degree, so they cannot join an anticommunist alliance with
Ukrainians.

2. By linking democratic countries and the Soviet Union in a military
alliance, the war weakened the West’s immunity to the communist idea, which
was very strong at the time of the Hitler-Stalin pact, and created a certain
intellectual stupor.

3. One of the main achievements of the Soviet regime is that it could spread
and gradually impose its own ideological classification of contemporary
political regimes. The specific features of Nazism were being obliterated.
At the same time, it was assigned its place on the right, casting its
sinister shadow on all right-wing forces.

It was becoming the absolute on the right, whereas the USSR was becoming
the absolute on the left. In Ukrainian conditions we are witnessing
Vitrenko’s manipulations of the term “fascism”; she calls all her enemies fascists,
from Americans to Ukrainian national democratic forces, although in reality
it is the pro-Russia extremist forces that best fit this definition.

4. The insignificance of groups capable of preserving memories about
communism. Nazism lasted 12 years, while European communism existed
between 50 and 70 years in various countries.

Duration has the effect of automatic amnesty. Indeed, over this long period
of time civil society was scattered, and one after another elites were
destroyed, replaced, and re-educated. Everyone, or nearly everyone, from top
to bottom, adjusted, capitulated, and became morally degraded.

Worse, the majority of people who were capable of thinking were deprived of
knowledge about their own history and lost the ability to analyze. This is
especially true of Ukraine, inasmuch as the great majority of those who
could potentially help condemn communism were part of the system.

The Black Book of Communism (Le Livre noir du communisme: Crimes, terreur,
repression) by the French historian Dr. Stephane Courtois (1997), which is
well known in the West but little known in Ukraine, proves that communism
claimed some 100 million lives all over the world and is the most criminal
system that has ever existed.

                         DEATH OF A UKRAINIAN CHILD
Among other things, Ukrainians should pay particular attention to one of the
French author’s statements: “The death of a Ukrainian child from a ‘kulak’
family, purposefully condemned to death by starvation by Stalin’s regime, is
as heinous a crime as the death of a Jewish child in the Warsaw ghetto, who
became a victim of a famine engineered by the Nazi regime.”

The condemnations of communism in the USSR, including Ukraine, heard
both in the West and here, lack a broad treatment of the concept of “crimes
of communism.”

These are mostly associated with the period of Stalinism (e.g., Levko
Lukianenko’s Nuremberg-2, Kyiv, 2001). Of course, communist crimes in
Ukraine look especially self-evident in the 1930s-1950s.

However, the main criminal manifestation of communism was its ideology and
the propaganda machine that generated it. That ideology grew the longest
roots and brought about the most tragic consequence, the Soviet individual,
known as sovok.

The presence of this new type of man in contemporary Ukraine is the main
deterrent to its sociopolitical and cultural progress. The sovok is
incapable of perceiving anything new; he hates those who think differently;
he has a manifest herd instinct and is prone to blindly follow the leader.

  DISCREDITING THE IDEA OF UKRAINIAN NATIONALISM
The process of breeding this human type lasted as long as the USSR existed,
starting in 1917. The communist regime is guilty of discrediting the idea of
Ukrainian nationalism, and this has created one of the biggest obstacles to
Ukraine’s national development.

Fearing a national awakening in Ukraine, the Soviet regime did its utmost to
push Ukrainian national culture backwards, especially the language. The
Ukrainian language was pushed to the sidelines and reduced to a minor
status, so that it would gradually die within the internationalist embrace.

The communist ideology was the link between Ukraine and Russia; it did not
allow Ukrainian independence as the main prerequisite of progress for the
Ukrainian nation.

Among the social crimes of communism I should mention the herding of
the bulk of the population into all those communal flats and the lack of the
most basic commodities, all the while militarizing the economy.

Communist ideology cherished egalitarianism, mediocrity, and dumb
obedience to the upper caste, the party functionaries.

       OUR COUNTRY’S NEED TO BE DECOMMUNIZED
It is unlikely that most Ukrainian politicians today, even those who are
rigged out in patriotic garb, are capable of perceiving one of the biggest
problems of contemporary Ukraine: our country’s need to be decommunized.

Indeed, almost all these politicians were born in the USSR. The ideas of
Nuremberg-2 and lustration serve rather as propaganda slogans, campaign
stunts.

Unfortunately, hope for an imminent and genuine decommunization is illusory,
and, as always, is linked to the change of generations. By means of profound
reflections and a thorough study of sources, young people should realize
that there is no statute of limitations on these crimes, and therefore
condemnation of communist ideology and practice will always be topical.

Ukraine must declare in no uncertain words that it is not a legal successor
to the Ukrainian SSR but its antipode.

Painful surgery is required – the realization that your forefathers were
wrong and that you must not blindly follow in their footsteps. This is
difficult, but it is the only way to cleanse oneself.

The Ukrainian intelligentsia is once again at a crossroads: it can either
submit to the latest change of conjuncture and smooth over the rough edges
in its treatment of communism, or despite this conjuncture convey to the
younger generation a clear concept of the communist system as evil. As
always, the choice is essentially an individual matter.              -30-
———————————————————————————————–
LINK: http://www.day.kiev.ua/172336/
———————————————————————————————–
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AUR#789 Nov 14 Chicago Trade Exhibition & Conference; Woskob’s Donate To Penn State; Russian Subversion in Crimea; Viktor Baloha

========================================================
 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       

 
  UKRAINE’S NATIONAL EXHIBITION & CONFERENCE IN THE USA
                          Ukraine’s Changing Place in the Global Economy 
                            December 14th to 16th, 2006, Chicago Illinois
                                                                        
ACTION UKRAINE REPORT – AUR – NUMBER 789
Mr. E. Morgan Williams, Publisher and Editor  
WASHINGTON, D.C., TUESDAY, NOVEMBER 14, 2006
                
               –——-  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
                      Ukraine’s Changing Place in the Global Economy 
                        December 14th to 16th, 2006, Chicago Illinois
Action Ukraine Report (AUR) #789, Article 1
Washington, D.C., Tuesday, November 14, 2006
2WOSKOB FAMILY DONATES ONE MILLION DOLLARS TO THE
     UKRAINIAN STUDIES PROGRAM AT PENN STATE UNIVERSITY
Department of Germanic and Slavic Languages and Literatures
Penn State University, University Park, Pennsylvania
Action Ukraine Report (AUR) #789, Article 2
Washington, D.C., Tuesday, November 14, 2006

3   UKRAINIAN SCHOLARS PROGRAM LAUNCHED IN COLLEGE
                 OF AGRICULTURAL SCIENCES AT PENN STATE

College of Agricultural Sciences, Penn State College
Action Ukraine Report (AUR) #789, Article 3
Washington, D.C., Tuesday, November 14, 2006

4. US PRESIDENT GEORGE BUSH WILL VISIT UKRAINE NEXT YEAR,
                 UKRAINIAN PRESIDENTIAL SECRETARIAT SAYS
Interfax Ukraine Business Express, Kyiv, Ukraine, Fri, Nov 10, 2006

5.                          UKRAINE: OLIGARCHY REFORMED
PRESENTATION: By Anders Aslund, Senior Fellow
Peterson Institute for International Economics
Kennan Institute, Woodrow Wilson International Center

Washington, D.C., Monday, November 13, 2006

6.   POLISH HOTEL CHAIN OPERATOR ORBIS PLANS TO EXPAND
     INTO UKRAINE STARTING WITH THREE NEW HOTELS IN LVIV
Business Digest, Sofia, Bulgaria, Friday, November 10, 2006

7AMERICAN ELECTRONIC COMPONENTS COMPANY JABIL PLANS
          TO OPEN LARGE PLANT IN UKRAINE IN SPRING OF 2007
     Wants to invest more in Ukraine if government would improve conditions
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

8.    UKRAINE: CABINET OF MINISTERS THINKS GRAIN EXPORT

       QUOTAS COMPLY WITH WTO MARKET TRADE PRINCIPLES 
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

9KRAFT FOODS UKRAINE STARTS PRODUCTION OF CHOCOLATE
    COATED HAZELNUTS, PEANUTS, CORN FLAKES & MALT BALLS
Ukrainian News Agency, Kyiv, Ukraine, Thu, November 9, 2006

10. SWITZERLAND TOURISM LOOKS FOR EXPANSION IN UKRAINE 
Business Digest, Sofia, Bulgaria, Tue, November 7, 2006

11.       RUSSIA’S GAZPROM TARGETING UKRAINIAN ENERGY

                  INFRASTRUCTURE FOR HOSTILE TAKEOVERS
ANALYSIS & COMMENTARY: By Vladimir Socor
Eurasia Daily Monitor, Volume 3, Issue 210
The Jamestown Foundation, Wash, D.C., Mon, Nov 13, 2006

12. UKRAINIAN DEFENSE INDUSTRY CAN DEVELOP SUCCESSFULLY

                              WITHIN NATO, EXPERTS BELIEVE
Interfax Ukraine Economic, Kyiv, Ukraine, Tuesday, November 7, 2006

13.        UKRAINE BELONGS IN NATO, THE CHOICE IS UKRAINE’S
OPENING REMARKS: By William Miller
Former United States Ambassador to Ukraine
Ukraine’s Quest for Mature Nation Statehood Roundtable VII:
UKRAINE AND NATO MEMBERSHIP
Ronald Reagan International Trade Center
Washington DC, October 17-18, 2006

14ECONOMICS, NOT POLITICS, CENTRAL EUROPE’S BIG PROBLEM
COMMENTARY: By Anders Aslund
Financial Times, London, UK, Wed, Nov 8, 2006

15.                          RUSSIAN SUBVERSION IN CRIMEA
Jane’s Intelligence Digest, United Kingdom, Friday, 3 November 2006

16.   “HENADIY MOSKAL: THERE ARE NO AUTHORITIES IN CRIMEA”
         Crime strong, government weak in Crimea – Ukrainian president’s envoy
INTERVIEW:
With Henadiy Moskal,
President Viktor Yushchenko’s Representative in Crimea
BY: Valentyna Samar, Zerkalo Nedeli, Kiev, in Russian 4 Nov 06; p 3
BBC Monitoring Service, United Kingdom, Thursday, Nov 09, 2006

17.      TATARS INHABIT THE MARGINS IN CONTESTED CRIMEA
LETTER FROM CRIMEA: By Michael Foley
Irish Times, Dublin, Ireland, Wednesday, Nov 01, 2006

18. PROFILE: UKRAINIAN PRESIDENTIAL CHIEF-OF-STAFF BALOHA
BBC Monitoring Service, United Kingdom, Sunday, Nov 12, 2006

19.                “BALOHA TOOK OVER, BALOHA TOOK OVER”
   Ukrainian presidential office chief replaced by brother as regional party boss
ANALYSIS AND COMMENTARY:
By Vitaliy Pyrovych
Delovaya Stolitsa newspaper, Kiev, in Russian 23 Oct 06
BBC Monitoring Service, United Kingdom, Tuesday, Oct 24, 2006

20.                      “TARASYUK AND LUTSENKO OUT?”
             Ukrainian foreign, interior ministers will go, newspaper says
Segodnya, Kiev, in Russian 14 Nov 06; p 2
BBC Monitoring Service, United Kingdom, Tue, Nov 14, 2006

 
         TO RETAIN THE INTERNATIONAL BOXING FEDERATION
                             HEAVYWEIGHT WORLD TITLE
By Larry Fine, Reuters, New York, NY, Sunday, Nov 12, 2006
 
                    MARKED IN DNIPRODZERZHYNSK, UKRAINE
Ukrinform, Kyiv, Ukraine, Monday, November 13, 2006
 
23 “THEY WERE RAPED..THEY TIED THEM AND PUT COTTON IN 
       THEIR MOUTHS.  THEN THEY LIT THE COTTON AND BURNED
       THEM TO DEATH”  Darfur Victim, Name Withheld To Protect Source
Save Darfur Coalition, Full Page Advertisement
The Washington Post, Washington, D.C., Thu, Nov 9, 2006, Pg A-9
 
24UKRAINIAN FAMINE “NOT GENOCIDE”, SAYS RUSSIAN MINISTRY
Ekho Moskvy radio, Moscow, in Russian 1800 gmt 13 Nov 06
BBC Monitoring Service, United Kingdom, Monday, Nov 13, 2006
========================================================
1
UKRAINE’S NATIONAL EXHIBITION & CONFERENCE IN THE USA
                       Ukraine’s Changing Place in the Global Economy 
                         December 14th to 16th, 2006, Chicago Illinois
 
Action Ukraine Report (AUR) #789, Article 1
Washington, D.C., Tuesday, November 14, 2006

WASHINGTON – The government of Ukraine will hold their first National
Exhibition and Conference in the USA in Chicago, Illinois, at the Sheraton
Chicago Hotel from Thursday, the 14th to Saturday the 16th of December
2006.

The exhibition will host over 50 leading Ukrainian companies from the
aerospace, mining, metallurgy, machine building, chemicals, food processing,
light industries and consumer goods as well as the science and information
technology sectors.

It will feature everything from the world’s most efficient satellite
launcher to the world’s smallest nano-metric engine and will provide a
unique opportunity for US companies to capitalize on the rapidly

expanding economy and low cost production centre right on the eastern
edge of Europe.

With foreign direct investment already outstripping last year by 350%,

and with an economy growing at 6 to 8% a year Ukraine has become an
investment and production focus where skilled and highly educated labor
coupled with a close proximity to major European markets, a massive
pool of high technology and a domestic market of over 48 million are
making US companies reconsider previously held perceptions.
“UKRAINE’S CHANGING PLACE IN THE GLOBAL ECONOMY”. 
A highlight of the event will be a conference “Ukraine’s Changing Place in
the Global Economy”. The conference will discuss current issues in
Ukraine’s economic development and will ask searching questions including:

     [1] Can Ukraine link East and West?
     [2] Do foreign investors underestimate Ukraine?
     [3] What are the opportunities for US companies?
     [4] Perception verses reality of the Ukrainian economy?

The conference plenary session will spotlight the strengths and weaknesses
of modern Ukrainian economy and the prospects for bilateral trade and
successful foreign investment.

Top economists from Ukraine and world renowned institutions will present
their visions and forecast of the country’s economic development.

The interests of particular industries will be discussed at break out
sessions devoted to Ukraine’s vast agricultural potential, harnessing unique
information technologies, the strengthening financial sector and of most
interest Ukraine’s massive and as yet untapped resources in scientific and
technical innovation.

It should be noted that Ukraine used to produce over 40% of the technology
of the former Soviet Union including the majority of the space and defense
programs.

The goal of the event is to introduce the U.S. business community to the
present-day economic potential of Ukraine in order to establish mutually
beneficial platforms for trade, commerce and investment.

As part of this conference, participants will be presented with a schedule
of the best investment projects in Ukraine today, as well as an investment
climate overview from leading international consulting companies and those
US companies that have already invested successfully including senior
representatives of Cargill and Kraft and senior representatives of the US
and EU funded Science and Technology Centre in Ukraine.

Who should attend?

     [1] Business executives interested in above average profit margins.
     [2] Scientific and research institutes, production and experimental
          development companies, machinery and equipment engineers
          and technology developers.
     [3] Financial and investment companies, banks and financial
          institutions.
     [4] Chambers of Commerce, leading consulting and information
          companies

For further information and to register for the Exhibition and Conference
please refer to www.ukrdzi.com/usa.

For additional information please contact: Elena Ivanova,

Project coordinator, helen@dzi.mfert.gov.ua

Media enquiries to: Chicago: Sharon Omizek, Partners Ltd
Telephone: (773) 919 3875 / Fax: (630) 834 5068. partnersltd@core.com

Kyiv: Martin Nunn MCIPR, Whites International Public Relations
Telephone / Fax: (+38044) 494 4200; martin.nunn@wipr.com.ua.
————————————————————————————————-

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
2.   WOSKOB FAMILY DONATES ONE MILLION DOLLARS TO THE
     UKRAINIAN STUDIES PROGRAM AT PENN STATE UNIVERSITY

Department of Germanic and Slavic Languages and Literatures
Penn State University, University Park, Pennsylvania
Action Ukraine Report (AUR) #789, Article 2
Washington, D.C., Tuesday, November 14, 2006

WASHINGTON, D.C. – Alex and Helen Woskob (Voskobijnyk), business-
people and owners of the AW&Sons apartment rental company in State
College, Pennsylvania, have donated one million dollars to the College
of Liberal Arts in support of Ukrainian studies at The Pennsylvania State
University.

Two of the Woskobs’ children, George and Larysa, are graduates of Penn
State, and the recent donation continues the Woskob family’s generous
support for the Ukrainian as well as other artistic and cultural programs at
the University.

The Woskobs have previously donated significant funds to establish the Penn
State Center for Ukrainian Agriculture and have funded other local cultural
projects such as the Woskob Family Art Gallery at the Penn State Downtown
Theatre.

The Woskobs’ son George with his wife Nina, owners of the GN Associates
apartment rental and management firm in State College, have also been
extremely active in their financial support of cultural activities at Penn
State.  George Woskob also serves on the advisory board of the Penn State
Center for Ukrainian Agriculture.

The latest gift will significantly expand the Endowment for Ukrainian
Studies at Penn State and Mr. and Mrs. Woskob hope that others in the
Ukrainian community will contribute in the future to increase the scope of
the endowment’s activities.

The interest generated by the endowment will primarily support cultural and
scholarly activities at Penn State, including the teaching of Ukrainian
language and culture; visiting faculty, researchers and scholars;
publications and symposia on Ukrainian topics; speakers and performers;
student and faculty exchanges; study abroad programs in Ukraine; and other
activities that will acquaint the English-speaking world with the best that
Ukrainian culture has to offer.

Spearheading the Ukrainian program at Penn State is Professor Michael
Naydan, who has been teaching at the University since 1988.

Dean Susan Welch of the College of Liberal Arts at Penn State recently
announced that Professor Naydan has just been appointed to the rank of
distinguished professor with the title of Woskob Family Professor in
Ukrainian Studies for his “sustained record of scholarly achievement at the
highest level.”

Professor Naydan is the author-translator of 13 books and nearly 100 other
publications in scholarly and literary journals. His most recent books
include annotated translations of Yuri Andrukhovych’s novel Perverzion
(Northwestern University Press, 2004) and Viktor Neborak’s The Flying
Head and Other Poems (Sribne Slovo Publishers, 2005).

The former won the American Association of Ukrainian Studies translation of
the year award (2005) and the latter the poetry book of the year award in
Ukraine (2006).

In 1989, Professor Naydan established Penn State’s first Ukrainian culture
course, which has been taught uninterruptedly twice each academic year
either by Professor Naydan, by visiting scholars such as Oksana Zabuzhko,
Mykola Riabchuk, Maria Zubrytska, and Olha Luchuk.

Graduate students from Ukraine have also helped teach the course including
Oleksandra Shchur, Oksana Tatsyak, and Roman Ivashkiv, all three of whom
have continued their graduate studies in Ph.D. programs at the University of
Toronto and at the University of Illinois.

The current course is taught by Olha Tytarenko from Lviv. The culture course
began with an enrollment of 15 students when it was first taught and has
climbed to as many as 60 students. Most recently, it has been offered to
ever increasing numbers of students via the Internet during the spring
semester.

The University has also offered a three-semester sequence of Ukrainian
language on several occasions-a sequence that was generously funded by the
Woskob family during the previous academic year. With the increase in the
endowment, plans are to offer Ukrainian language courses on a yearly basis.

 Professor Naydan foresees the focus of the endowment to be cultural and
contemporary issues that will not duplicate the already good efforts in
history and politics in place at other universities.

He sees the Woskob family’s generous donation as a solid beginning and
welcomes other donors to establish graduate student teaching assistantships
for students from Ukraine, publication and conference funds, and
scholarships for students to assist them in attending study abroad programs
in Ukraine.

An additional faculty member at Penn State, Dr. Catherine Wanner, has been
particularly active in Ukrainian studies and will be working closely with
Professor Naydan toward establishing a Center for the Study of Modern
Ukraine at Penn State.

Professor Wanner is an Assistant Professor in the Department of History at
The Pennsylvania State University and received her doctorate in cultural
anthropology from Columbia University.

Her first book, “Burden of Dreams:  History and Identity in Post-Soviet
Ukraine (1998),” was an ethnographic study of how the nationalist paradigm
influenced historiography and cultural politics in Ukraine after the
collapse of the Soviet Union.

She is also the author of Communities of the Converted:  Ukrainians,
Evangelicalism and the Search for Salvation (2007), an analysis of how
Soviet-era evangelical religious practices and communities in Ukraine have
changed since the collapse of socialism and the introduction of global
Christianity.

She is also the co-editor of Reclaiming the Sacred:  Community, Morality and
Religion after Communism (2007), a collection of essays addressing religion
and cultural change in the former Soviet Union.

Her current research project analyzes the transformation of religious life
in the Western Ukrainian city of Chernivtsi after World War II and the
incorporation of this region into Soviet Ukraine.

Her research has been supported by awards from the National Science
Foundation, the National Endowment for the Humanities, the Social Science
Research Council and the National Council for Eastern European and
Eurasian Research.                                -30-
——————————————————————————————–
For further information on the Ukrainian studies program at Penn State
contact: Professor Michael M. Naydan, Dept. of Germanic and Slavic
Languages and Literatures, 303 Burrowes Building, The Pennsylvania
State University, University Park, PA 16802, 814-865-1675, mmn3@psu.edu 

———————————————————————————————–
FOOTNOTE: My congratulations to Alex and Helen Woskob for their
outstanding gift to Penn State University.  I have known and worked with
Alex and Helen for over 12 years.  They have assisted many programs
that support Ukraine including the Holodomor Education and Exhibition
Collection in Kyiv.  AUR Editor Morgan Williams
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
3.   UKRAINIAN SCHOLARS PROGRAM LAUNCHED IN COLLEGE
                 OF AGRICULTURAL SCIENCES AT PENN STATE
 
College of Agricultural Sciences, Penn State College
Action Ukraine Report (AUR) #789, Article 3
Washington, D.C., Tuesday, November 14, 2006

WASHINGTON, D.C. — During a September visit to Ukraine to receive an
honorary degree, the dean of Penn State’s College of Agricultural Sciences,
Robert Steele, announced a new joint program to encourage scholarship and
professional development among faculty at Ukrainian agricultural
universities.

Beginning in 2007, the Woskob International Research in Agriculture, or
WIRA, program — made possible by an endowment from real estate

developers Helen and Alex Woskob of State College — will bring as many as
four Ukrainian scholars to Penn State each year during the fall semester to
study educational methods, take and co-teach courses, establish links with
Penn State researchers and promote study-abroad opportunities for
undergraduate students.

“It’s very fitting that the Ukrainian word ‘wira’ means ‘trust,'” Steele
says. “We hope that the partnerships made possible by the Woskobs’
generosity will enhance agricultural research, education and productivity in
Ukraine and encourage global understanding, collaboration and friendship
among faculty members and students at participating universities.”

The announcement came during ceremonies at Lviv State Agricultural
University near Lviv, Ukraine, where Steele received an honorary doctorate.
The College of Agricultural Sciences has a long-standing relationship with
Lviv in co-sponsoring student and faculty exchange programs.

“The similarities between Penn State and LSAU are striking,” Steele says.
“Penn State celebrated its sesquicentennial in 2005, and Lviv is marking its
150th anniversary this year.

Both institutions are dedicated to generating scientific knowledge that can
be put to practical use and to training new generations of researchers and
educators.” Also coincidentally, “Lviv” translates to “lion” in English,
Steele notes, pointing out Penn State’s “Nittany Lion” mascot.

The honorary doctorate was Steele’s second from a Ukrainian university in a
little more than a year. He was similarly recognized by National Agrarian
University in Kiev in September 2005.

The WIRA scholars program will be open to full-time faculty members at

all Ukrainian agricultural universities.

Natives of Ukraine, the Woskobs are founders and co-owners of State
College-based A.W. and Sons Enterprises. Since 1963, they have developed
numerous real estate projects in Centre County, including housing for
thousands of Penn State students.

The Woskobs have a long history of support for higher education. In 1992,
they established the Ukrainian Agricultural Exchange Program, enabling
collaboration between the College of Agricultural Sciences and the Ukrainian
Agricultural Academy.

They have been involved in the university’s Ukrainian Studies program and
have served on the advisory board of the Centre for Ukrainian Agriculture.

More information on the Woskob International Research in Agriculture

program is available by calling the College of Agricultural Sciences’ Office
of International Programs at 814-863-0249 or by visiting their Web site.
————————————————————————————————–
EDITORS: For more information, contact Deanna Behring, director of
international programs, at 814-863-0249 or dmb37@psu.edu; or Anatoliy
Tmanov, international program coordinator, at 863-2703 or axt193@psu.edu.
—————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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4. US PRESIDENT GEORGE BUSH WILL VISIT UKRAINE NEXT YEAR,
               UKRAINIAN PRESIDENTIAL SECRETARIAT SAYS

Interfax Ukraine Business Express, Kyiv, Ukraine, Fri, Nov 10, 2006

KYIV – U.S. President George Bush will visit Ukraine next year, according to
Ukrainian presidential secretariat deputy head Oleksandr Chaly, who referred
to a discussion held between presidential secretariat head Viktor Baloha and
U.S. Ambassador to Ukraine William Taylor.

“The meeting addressed the schedules of visits at all levels. The clear
common position of Ukraine and the United States [is] that a visit of the
U.S. president to Ukraine is desirable and the U.S. representative confirmed
that the visit is planned,” Chaly said.

He said the exact date of the visit had not been determined. Earlier, the
U.S. ambassador said Bush might visit Ukraine in the winter or spring
of 2007.                                              -30-

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========================================================
5.                    UKRAINE: OLIGARCHY REFORMED

PRESENTATION: By Anders Aslund, Senior Fellow
Peterson Institute for International Economics
Kennan Institute, Woodrow Wilson International Center

Washington, D.C., Monday, November 13, 2006

For the last two years, Ukraine has undergone fast and complex changes
that are confusing to the outsider, but the salient features of Ukraine’s
development are rather clear.

The dominant themes of the Orange Revolution were freedom, democracy,
and justice, while economic and social themes were conspicuously absent.
You get what you ask for. The immediate and striking achievement of the
Orange Revolution was the freedom of speech and of the media.

The media appear securely diverse under multiple owners, and their quality
has greatly improved. All the time, various popular protest actions are
taking place at the local level, showing that Ukrainians are no longer
afraid.

Similarly, Ukrainian democracy has made great advances. Ukraine has moved
far in the direction of a parliamentary system, which provides more
transparency and accountability. It has adopted a proportional election
system, which has generated a structured party system. A sound balance of
power has arisen between parliament and president.

Many Ukrainians are upset that “bandits” have not been sent to prison. But
the rule of law is not built through arbitrary revolutionary acts of
“justice”. The change of the judicial system must start from the top, and
the newly-composed Constitutional Court and Supreme Court are greatly
strengthened.

Representing different constituencies, these courts are balanced, and will
hopefully prove more objective. Corruption in Ukraine declined greatly in
both 2005 and 2006, according to authoritative Transparency International,
as would be expected with the much greater public criticism of corrupt acts.

Ukraine’s parliamentary election on March 26, 2006, was an unmitigated
success for democracy. Five parties passed the three-percent threshold for
representation in the parliament. To form a government, at least two of the
three main parties, Prime Minister Viktor Yanukovich’s Regions, Yulia
Tymoshenko’s Bloc, and President Viktor Yushchenko’s Our Ukraine, had
to join the coalition.

After an undignified intriguing, Yanukovich and Yushchenko finally agreed on
a coalition government in early August. At the time, it looked like a great
historical compromise. The western Our Ukraine obtained what matters the
most to it – foreign policy, law enforcement, and culture, while the Regions
got what matters to the east, namely the economy, though Yushchenko has
appointed the chairman of the central bank.

Unfortunately, this coalition did not quite come to fruition.

Embarrassingly, Our Ukraine disputed for another two months whether the
party should join the coalition or not, and finally decided not to do so,
effectively committing political suicide. Its leaders have quarreled more
with one another than anybody can stand, leaving this political constituency
vacant.

With the demise of Our Ukraine, the oligarchs have returned to the main
stage. Ukraine is dominated by four eastern steel companies, each with about
100,000 employees. Two come from Donetsk and two from Dnepropetrovsk,
and they are all severe rivals.

The biggest is Rinat Akhmetov’s Donetsk-based System Capital Management,
which is the back-bone of the Regions. Yulia Tymoshenko has gathered many
big businessmen in her parliamentary faction, while then big Privat Group
from Dnepropetrovsk is more loosely allied with her.

After Our Ukraine collapsed in October, President Yushchenko undertook a
major realignment. He invited heavyweights from the third biggest industrial
group, the Industrial Union of Donbass from Donetsk, to his administration.
He also drew closer to the fourth biggest industrial group, Viktor Pinchuk’s
Interpipe based in Dnepropetrovsk.

As a result, Ukraine has now obtained multiple balances of power between
government, president, and parliamentary opposition, between the biggest
industrial groups, and the three leading political personalities, and they
can settle their disputes in the Constitutional Court. This political
structure is reminiscent of the United States in the 19th century.

Ukraine is still lagging behind most post-Soviet countries in terms of
legislation, but this new balance of power might generate common law, as
court precedence may develop faster than legislation.

Economic policy is entirely formed by politicians from the Regions, who
favor their big business interests. The new government is growth oriented
and fiscally conservative. Their top issue is WTO accession, and Ukraine is
likely to join by February 2007, long before Russia. It is trimming social
transfers by indexing them to prices rather than incomes.

As a consequence, the government expects to be able to cut the corporate
profit tax from 25 to 20% and VAT from 20 to 18% in 2008. It has abandoned
talk about re-privatization and advocates the reinforcement of existing
property rights as well as private sales of agricultural land in 2008.

The concern, however, is outright corruption. Bad habits before the Orange
Revolution have returned. The most egregious old practice is the corrupt
distribution of refunds of value-added tax to exporters. From the first
month of the new government, the West hardly received any refunds, while
the east obtained twice its share. The rumor is that tax officials demand a
kickback of 30 percent for VAT refunds.

Yanukovych’s government has also prohibited exports of grain, arguing that
exports would double Ukraine’s domestic grain price. In reality, Ukraine is
likely to export no less than 10 million of grain this year, but somebody
will be allowed to monopolize these exports, paying too low a price to the
Ukrainian farmers.

A third area arousing concern about corruption is the gas trade, where Yuriy
Boiko, the founder of the notorious gas trading company RosUkrEnergo has
become Minister of Energy. Prominent voices in the Ukrainian debate are
warning that Boiko is interested in bankrupting the Ukrainian state company
for oil and gas, Naftohaz Ukrainy in order to sell off its parts cheaply.

Planned free economic zones and new public investments are also likely
boondoggles for vested interests, while the worry is that small and
medium-sized enterprises will be repressed by higher tax burden if the big
businessmen pay less tax.

The question is whether Ukraine’s democracy is strong enough to halt this
outrageous restoration of old corrupt schemes. My sense is that the details
of most of these schemes are too well publicized and understood to render
them sustainable, but this is Ukraine’s test.                     -30-
————————————————————————————————

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================      
6. POLISH HOTEL CHAIN OPERATOR ORBIS PLANS TO EXPAND
   INTO UKRAINE STARTING WITH THREE NEW HOTELS IN LVIV

Business Digest, Sofia, Bulgaria, Friday, November 10, 2006

KYIV – The Delo Polish hotel chain operator Orbis SA plans to expand in
Ukraine, starting from the western city of Lviv where it will build two
three-star hotels in 2007, Ukrainian newspaper Delo reported on November 9,
2006.

The two hotels, with a capacity of 80 to 120 rooms, will be built in
downtown Lviv, an Orbis representative told the daily, adding that the
construction of a room would cost at least 30,000 euro ($38,000).

The regional administration of Lviv refused to reveal the location of the
two hotels saying that only a preliminary agreement had been signed with the
investor.

Some 70 pct of the Orbis hotels are in the three-star category, but the
company targets to increase the share of one and two-star hotels to 50 pct
by 2009.

The group has 66 hotels in Poland and one in Lithuania. Many of the Orbis
hotels operate under French Accor’s brands Sofitel, Novotel, Mercure and
Ibis.

Lviv’s hoteliers should not fear competition as the city’s tourism potential
is yet to be developed and the hotel occupancy rate has been as high as 80
pct, said Oleg Podolyan, deputy manager of the Lviv Grand Hotel.

The manager of the Lviv Hotel, Vasiliy Panko, also expects the local hotel
market to remain calm after the entrance of Orbis as tourist arrivals in the
city double every year.

Investments in Lviv’s hotel sector pay off in three to four years, which is
quite high, Panko added. Nearly 100 hotels operate in the region of Lviv, of
which 30 are in the city. Investments in the region’s hotel industry topped
$50 mln (39.2 mln euro) in 2005.

Lviv, which is some 70 km from the Polish border, is a major cultural and
tourist centre. Its historic city centre is on the UNESCO World Heritage
List. (Alternative name: Lvov) (LINK: http://www.delo.ua)

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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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7. AMERICAN ELECTRONIC COMPONENTS COMPANY JABIL PLANS
           TO OPEN LARGE PLANT IN UKRAINE IN SPRING OF 2007
     Wants to invest more in Ukraine if government would improve conditions

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

KYIV – The American electronic components manufacturing company Jabil

plans to open its own plant in Ukraine in the spring of 2007, construction of
which began in September. Philippe Costemale, general director of Jabil
Circuit Ukraine Ltd., announced this to reporters and said Jabil has worked
in Ukraine since 2004.

He noticed, that it would be the first line of the 26,000-square-meter
plant; the company invests USD 50 million into its construction.

Particularly, for construction of the plant building in Rozivka village,
Uzhhorod region, USD 18 million would be spent and USD 2 million more –

for infrastructure, including laying of communications and repairing of roads.

Another USD 20 millions are investments into equipment. According to
Costemale, Jabil has already invested USD 11 million.

Now the company leases premises in the Mynai village, Uzhhorod region, from
the Yadzaki plant, which produces car parts.

After opening the new plant the company plans to completely move to Ukraine
assembling of mobile phones from its Hungarian plant Tiszaujvaros for one of
the world’s largest producers.
WOULD INVEST 50M USD MORE IF CONDITIONS IMPROVED
According to the Jabil Vice President for operations in Europe, Trevor Key,
if the government improves conditions for the investor, then it would invest
USD 50 more million into the second line by 2010 and create 5,000 more jobs.

Key added, that worsening of work conditions for investors in Ukraine and
simultaneous improvement of these conditions in other countries,
particularly Hungary, prompts large companies to make their choice not in
favor of Ukraine.

As Ukrainian News already reported, Jabil has asked Ukrainian authorities to
introduce preferences for foreign investors from January 1.

In particular, the company asks:
     [1] to simplify procedure of working with bills of credit for customs
          payment,
     [2] reduce tax rate for the enterprise’s profit and also to
     [3] cancel duty for customs clearing by export and import of the goods
          for the companies that export 100% of their products.

The company was founded in 1966 in Detroit, USA, and has 45 plants in 20
countries of the world at which it produces electronic components for such
companies as Hewlett Packard, Philips, Alcatel, Nokia, LG, Sharp, Ericsson,
Whirlpool, Thompson, Cisco, Airbus etc.

In Ukraine Jabil produces components for Hewlett Packard data recording
devices and also assembles mobile phones for one of the largest producers.

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========================================================
8.    UKRAINE: CABINET OF MINISTERS THINKS GRAIN EXPORT
      QUOTAS COMPLY WITH WTO MARKET TRADE PRINCIPLES 

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

KYIV – The Cabinet of Ministers thinks that their introduction of  grain
export quotas complies with the market trade principles of the World Trade
Organization.

Prime Minister Viktor Yanukovych said this at the grand meeting of the
Cabinet of Ministers and the parliament coalition devoted to the results of
the Yanukovych Cabinet’s 100-day work.

“We also followed only market principles. The government would further
predict and eliminate all the possible negative results connected with the
changing of the global environment”, said Yanukovych.

He regards strengthening the country’s food safety [security – AUR] as one
of his Cabinet’s first 100 days’ achievements.

Yanukovych stressed, that the Cabinet of Ministers was compelled to
introduce grain export quotas although it was taken mixed as now the Cabinet
intends, first of all, to care of the citizens’ safety and not of commercial
benefit.

Agricultural Policy Minister Yurii Melnyk, commenting on the US, German and
Netherlands Ambassadors statement about possible negative impact of the
grain quotas on the negotiations of the Ukraine’s entering the WTO, called
this pronouncement a subjective opinion.

“Why (grain export quotas) are not market methods? It is a subjective
opinion and we do not agree with it”, said Melnyk.

He said, that he had met the US, German and Netherlands Ambassadors
and explained them the government’s position.

Melnyk noticed, that the Cabinet, introducing the grain export quotas,
follows the WTO members’ modern legislation, which foresees in case of
critical shortage the country can take a number of measures, including
introduction of export quotas.

He underlined, that now the Agrarian Fund and the State Reserve are
purchasing grain to fill their reserves.

Melnyk also emphasized, that the Cabinet already defined that grain export
in this marketing year would be less then 9.5 million tons. “We strictly
fixed the amount (of grain), which can be exported in the marketing year –
9.5 million tons. That’s all”, said the minister.

As to him, 5.88 million tons of grain is already exported; it is by 1.2
million tons more than compared to the similar period of the previous year.

As Ukrainian News earlier reported, US ambassador in Ukraine, William
Taylor, German ambassador Reinhard Schaefers and Netherlands ambassador

Ron Keller warned the Cabinet of Ministers of possible negative impact of grain
export quotas on the negotiations on Ukraine’s entering the World Trade
Organization.

Germany, USA and the Netherlands call on the Cabinet of Ministers to cancel
the quotas for export of grain.

According to their statement, Ukrainian government’s actions, directed at
limitation of export of wheat, barley and corn, are groundlessly preventing
normal operation of market; limitation of export seriously damages Ukraine’s
economy, its investment climate and reputation as a safe partner.

On October 11, the Cabinet of Ministers introduced quotas for grain export
until the end of 2006 and refused licensing it.                   -30-
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]

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9. KRAFT FOODS UKRAINE STARTS PRODUCTION OF CHOCOLATE
    COATED HAZELNUTS, PEANUTS, CORN FLAKES & MALT BALLS

Ukrainian News Agency, Kyiv, Ukraine, Thu, November 9, 2006

KYIV – Kraft Foods Ukraine has started the production of Milka Lila Stars
chocolate coated dragee. Ukrainian News has learned this from the company’s
press service.

According to the report, the company produces three kinds of Milka Lila
Stars dragee: Hazelnuts covered with chocolate, Peanuts and Corn Flakes
covered with chocolate and Krispello dragee – malt balls covered with
chocolate and rice crumbs and another layer of chocolate.

‘If consumers like the three new tastes, we may extend the range,’ senior
brand manager assistant of Milka and Ukraina Chocolate Factory trademarks
Ksenia Chernova said. The company said that shipments of the new products
began on November 9.

The retail price of Hazelnuts and Peanuts and Corn Flakes dragee will make
round UAH 3.85 per pack, while Krispello dragee will cost UAH 2.7 per pack.

As Ukrainian News earlier reported, according to the TOP-100 rating compiled
by InvestHazeta, Kraft Foods Ukraine ended 2005 with a net profit of UAH
104.2 million. In 2005, the company increased net revenues by 32.4% or UAH
272.07 million, compared to 2004, to UAH 1,113.08 million.

Kraft Foods Ukraine owns the Ukraina chocolate factory in Trostianets (Sumy
region), while the Vyshhorod affiliate of Kraft Foods Ukraine in Stari
Petrivtsi owns a factory producing chips and snacks under the Lux, Estrella,
and Cherezos trademarks and a factory packaging coffee.

Kraft Foods Ukraine sells three brands of coffee on the Ukrainian market,
namely Carte Noir, Maxwell House, and Jacobs. Kraft Foods Ukraine is a
division of Kraft Foods, the world’s second largest food producer.

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FOOTNOTE:  Kraft Foods Ukraine is a member of the Ukraine-U.S.
Business Council in Washington, D.C.
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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10. SWITZERLAND TOURISM LOOKS FOR EXPANSION IN UKRAINE 

Business Digest, Sofia, Bulgaria, Tue, November 7, 2006

KYIV – Swiss hospitality entrepreneurs are seeking expansion opportunities
in Ukraine, including setting up hotel chains in the capital Kyiv, Federico
Sommaruga, an executive with Swiss tourism body Switzerland Tourism,

said during a visit to Ukraine in early November 2006.

Sommaruga and Ukraine’s State Tourism Service chairman Anatoliy Pakhlia
discussed opportunities for attracting Swiss investments to the Ukrainina
tourist sector.

Agreements are expected to be signed in May 2007, during an investment

forum in Kyiv. Switzerland may offer Ukraine’s hotel operators and staff
internship programmes and training, Sommaruga said.

The Swiss organisation, whose main activity is to promote tourism in
Switzerland, operates 35 representative offices worldwide with a 50 mln euro
($63.6 mln) annual budget, mostly for advertising and promotional
activities.

A total 5,300 Swiss nationals visited Ukraine in the first half of 2006, up
21.3 pct from the previous year. Swiss arrivals to Ukraine stood at 10,800
in 2005, of which business trips and tourist arrivals accounted for more
than 70 pct.

For January to September 2006, Ukraine’s foreign tourist arrivals topped
14.9 million, marking an 8.0 pct rise from the corresponding period in 2005.
Currently, the number of hotels in Ukraine rounds 1,232, while recreation
and health centres make up 3,245. (www.rynok.biz)

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11. GAZPROM TARGETING UKRAINIAN INFRASTRUCTURE
                                 FOR HOSTILE TAKEOVERS

ANALYSIS & COMMENTARY:
By Vladimir Socor
Eurasia Daily Monitor, Volume 3, Issue 210
The Jamestown Foundation, Wash, D.C., Mon, Nov 13, 2006

Gazprom is moving rapidly to take over Ukraine’s gas transport system
through its monopolist offshoots in Ukraine: RosUkrEnergo and

UkrGazEnergo. The immediate target is Ukraine’s internal gas distribution
network, although the transit system is being targeted as well.

This month, on the threshold of winter, RosUkrEnergo’s front company,
UkrGazEnergo, has refused to sign supply contracts with 16 Ukrainian
companies, many of which distribute gas in Ukraine’s oblasts. The apparent
goal is to take them over by creating Russian-controlled joint ventures with
them.

This could not have come as a surprise. Already in September, RosUkrEnergo
had announced plans to buy stakes in the gas distribution systems of seven
of Ukraine’s oblasts (out of 26) and place them under UkrGazEnergo’s
management, as a first stage in its intention to bring Ukraine’s
distribution system under Russian control.

Conveniently for Gazprom, the Aval Bank — a Ukrainian subsidiary of Austria’s
Raiffeisen Bank, which represented RosUkrEnergo from the outset  — was
entrusted with appraising those companies’ assets (Action Ukraine Report,
September 14; see EDM, September 15).

This is the first planned stage in a systemic takeover, and the number of
targeted Ukrainian companies is growing. On November 10, Ukrainian Fuel and
Energy Minister Yuriy Boyko confirmed that RosUkrEnergo intends to take over
16 companies. Boyko describes this method as normal and “civilized,” citing
Gazprom’s practices in certain European countries.

“We take the same path,” Boyko averred, ignoring the EU’s anti-monopoly
policy and the opposition of many European governments to that type of
arrangement with Gazprom (“2000” [Kyiv] cited by Interfax, November 10).

Apparently, gas-dependent Ukrainian factories might increase the number of
targets for hostile takeovers by Russian interests and their local
auxiliaries. According to Deputy Prime Minister for Fuel and Energy Andriy
Klyuyev, $130 per 1,000 cubic meters of gas (the price to take effect in
2007) is a high price that Ukraine’s economy is not yet prepared to afford.

With Ukraine’s export-oriented chemical industry particularly affected,
Klyuyev suggests resorting to a “merger of the chemical enterprises with the
suppliers of gas” as a means of capping the price of Russian-delivered gas.

Moreover, Klyuyev insists that UkrGazEnergo’s stoppage of deliveries to the
16 companies is a “purely commercial issue” beyond the government’s remit
(Interfax-Ukraine, November 7).

On that same day in Moscow, Gazprom was identically characterizing as “pure
commerce” its attempt to take over Georgia’s trunk pipeline under the threat
of stopping gas deliveries (see EDM, November 9).

According to National Security and Defense Council Secretary Vitaliy Hayduk,
those 16 Ukrainian companies risk either being forced to a halt or being
forced to change owners.

The NSDC plans to discuss the situation at an urgent session (One Plus One
TV [Kyiv], November 12). Hayduk was a critic of the January 2006 gas
agreements that paved the way to this situation.

Gazprom also seems to contemplate absorbing Ukraine’s state oil and gas
company, Naftohaz Ukrainy, through RosUkrEnergo. Gazprom board member

and RosUkrEnergo co-managing director Konstantin Chuychenko proposes
that Naftohaz Ukrainy become a stockholder in RosUkrEnergo.

Gazprom holds a 50% stake in RosUkrEnergo and claims unverifiably that two
Ukrainian partners of Gazprom hold the remainder. Merging Naftohaz into a
network of Gazprom-controlled structures looks like a first step toward its
absorption by Gazprom, whose ultimate target is Ukraine’s Naftohaz-operated
gas transit system.

Airing this proposal in the leading newspaper of Switzerland (where
RosUkrEnergo is nominally based), Chuychenko also explains the three-stage
monopolistic arrangements whereby Russia supplies gas to Ukraine:
Turkmenistan sells the gas exclusively to Gazprom; Gazprom sells that gas to
[its creation] RosUkrEnergo as the exclusive supplier to Ukraine; and
RosUkrEnergo sells that gas to [its creation] UkrGazEnergo as the exclusive
distributor within Ukraine.

In the first stage, Gazprom buys the Turkmen gas at $100 per 1,000 cubic
meters; RosUkrEnergo operates the transit through Gazprom’s pipelines, at a
cost of $25 per 1,000 cubic meters for the entire distance to the Ukrainian
border; and there, RosUkrEnergo sells the gas to UkrGazEnergo.

With the price of $130 in 2007, RosUkrEnergo reckons to make $5 in profits
for each thousand cubic meters of gas delivered to Ukraine (Neue Zuercher
Zeitung cited by Interfax, November 10).

While Chuychenko’s information on the profit margin must not be taken at
face value, his description of the mechanism is realistic. In 2007, this
mechanism will deliver at least 55 billion cubic meters of gas to Ukraine — 
a deceptive way to provide for “energy security,” designed to pave the way
for massive transfers of assets to the supplier.

As Hayduk observes, it is “nonsense” to speak about “market relations
between commercial entities” when RosUkrEnergo is a monopolist representing
the Russian state. As long as this is the case, the NSDC and Presidential
Secretariat take the position that Russia-Ukraine gas relations should
properly be handled at the inter-state level (One Plus One TV [Kyiv],
November 12).

Meanwhile, parliament and public opinion are still in the dark about the
details of the October 24 supply agreement signed by Boyko in Moscow. This
would seem to be an issue made to order for the Presidency and the Yulia
Tymoshenko Bloc to close ranks in the national interest.
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12. UKRAINIAN DEFENSE INDUSTRY CAN DEVELOP SUCCESSFULLY
                           WITHIN NATO, EXPERTS BELIEVE
 
Interfax Ukraine Economic, Kyiv, Ukraine, Tuesday, November 7, 2006

KYIV – The Ukrainian defense industry could develop successfully if

Ukraine joins NATO, experts believe.

The coordinator of international programs of the Democratic Initiatives
Foundation, and an expert on foreign policy from the institute of the
Diplomatic Academy of Ukraine’s Foreign Ministry Oleksandr Paliy gave

his assessment at a press conference at Interfax-Ukraine on Tuesday.

According to Paliy, Ukraine’s defense industry is capable of developing the
most advanced ammunition and create closed cycles of production for such
ammunition, which he said would be competitive on the world market.

Ukraine’s defense industry is capable of finding its place in the
distribution of work among NATO countries, and would be able to succeed
under new conditions brought by accession to the European Union, the expert
concluded.

At the same time, Director of the Center for Army Studies Valentyn Badrak
believes the future of Ukraine’s defense complex depends on the country’s
leadership.

Military expenses should be 2%-2.5% of Ukraine’s GDP, the expert said.
Poland, for example, annually spends $800 million on upgrading its defense
sector, whereas Ukraine’s expenditures do not exceed $100 million, he added.
The expert assessed that if Ukraine raises the financing of the defense
industry to 2%-2.5% of GDP a year, it would be able to take part in joint
programs of NATO member-states.

Additionally, to successfully develop its defense industry, Ukraine needs to
bring its legislation into line with NATO standards, Badrak said.     -30-
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13. UKRAINE BELONGS IN NATO, THE CHOICE IS UKRAINE’S

OPENING REMARKS: By William Miller
Former United States Ambassador to Ukraine
Ukraine’s Quest for Mature Nation Statehood Roundtable VII:
UKRAINE AND NATO MEMBERSHIP
Ronald Reagan International Trade Center
Washington DC, October 17-18, 2006

It’s a pleasure to be here with friends; some friends, I haven’t seen for 25
years, but many of you, I saw just a week ago [ed.–at the US-UA Policy
Dialogue] and I simply want to welcome you back.  For those of you here for
the first time, welcome.

Our forum subject is crucial for Ukraine, namely, the issue of its future
position in NATO. But I want to go at the matter in a different way and
those who know me will know that I usually do that.

Ukraine belongs in NATO; there’s never been any doubt about that, from a
strategic point of view.  It’s the big player, the most significant part of
the former Soviet Union that should be a part of Europe.

It is also very clear, particularly since the Orange Revolution, that
Ukraine is a democracy, in fact, a vibrant democracy.  As we have seen
recently, the process of building democratic institutions can be turbulent,
full of unexpected reversals and twists and turns. Nonetheless, the people
of Ukraine on the Maidan have emphatically embraced democracy as their
system of governance.

Over the past two years, the people have been struggling with their leaders,
with the choice of leaders, and how those leaders should respond to their
wishes.  Their wishes, of course, were made very clear on the Maidan and the
program that Ukraine’s leaders ought to follow was made very clear on the
Maidan.

The problem has been for the institutions of governance, particularly the
newly forming political parties, to translate the will of the people into
meaningful political action.

 As all of us know, and Ukrainians who are here know better than anyone
else, that process has been very difficult, and has led to disappointment,
disillusionment and argument.

But, certainly in my view, and I know in the view of my Ukrainian friends:
“Don’t worry, it will turn out all right”. Whenever I express concern, they
say: “Don’t worry, It will be alright.” and I believe it.

Ukraine is a nation of music…..this is perhaps not a NATO subject, but it
should be. Anyone who has been to Ukraine or lived in Ukraine or been with
Ukrainians, knows that when all else fails, they sing. When they sing, you
should listen, because they tell you what they really think.

On the Maidan, we had remarkable parade of great singers from church choirs
to pop stars.

And, of course, the pop singers were saying what the people had in mind. All
of those who were on the Maidan, as I was, heard Slava Vykarchuk and Okean
Elzy; they were expressing what the people wanted. Maria Burmaka, Taras
Petrenenko of “Ukraina” [fame], Ruslana, Oksana Bilozir and of course, the
people on the podium themselves were singing, with their hand on their
heart, about what the future of Ukraine should and would be. The world
watched this.

Certainly those who were close to Ukraine saw it directly and they knew that
this was Ukraine’s future.  They knew that those songs, those pledges made
on the Maidan, are the political agenda that has to be followed, no matter
what the twists and turns of political organizations may be.

Those pledges have to be honored, because that is in the memory of the
people as a whole and it came from their hearts, as well as their
experience.

So what has a song to do with NATO?  Well it’s not an old song. In some
respects, there are old songs, that is, hurdles for Ukraine to leap over,
before it can enter.  But these are minor things.

Ukraine’s entry into NATO is open to Ukraine, when it is ready to take that
step.  It is a matter for Ukraine to decide.  Ukraine has proven itself to
be a democratic state by a process of the last several years.

It has proved that it can participate in turbulent politics without killing
each other.  It has proved that there can be free and fair elections.  It is
as democratic as any state that has already newly entered into NATO.

The choice is Ukraine’s.  When Ukrainians finally want to enter and make the
political decision, there is no doubt that the West will respond well.

What is it that Ukraine and NATO have in common?  Certainly in the military
aspect of it all, which is only 30% of the real NATO mission, Ukraine has a
crucial role to play.

It has been playing such a role through the Partnership for Peace and
through all of the work it has done since independence in peacekeeping. It
has proved its worth.

The further technical side of becoming an efficient military force is really
a secondary matter.  The most important element of NATO membership

resides in common values, democratic values which Ukraine shares with
Europe through the Orange Revolution.

What happened on the Maidan, the processes of the last two years, are proof
for all to see that Ukraine has met the test of democratic processes.

So the task that remains for all of us here as technicians and as advocates
and as friends is to ease that process as much as we can and to welcome
Ukraine as soon as possible into the association of democratic states that
we now call NATO.

Maybe we can or will find a better name, but the subtext is an “association
of democratic states”, with shared values of “decency, human rights and
concern for the welfare of their people, living in peace”.

So I welcome you all here, and I look forward to the deliberations, which
will take place over the next two days and wish you all success.    -30-
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14. ECONOMICS, NOT POLITICS, CENTRAL EUROPE’S BIG PROBLEM

COMMENTARY: By Anders Aslund
Financial Times, London, UK, Wed, Nov 8, 2006

Central Europe’s political malaise has caught international attention. The
region’s governments are weak. Populism and nationalism are rising. These
political problems are contrasted with good economic performance.

But central Europe’s economic results are impressive only by European Union
standards. From 2000 to 2005, Poland, the Czech Republic, Slovakia and
Hungary grew on average by 4 per cent a year, compared with 8 per cent a
year in the 15 former Soviet republics. Even in this boom year, central
Europe will grow by 5 per cent, while the former Soviet Union comes close
to 9 per cent. Star performers are Armenia, Azerbaijan and Kazakhstan.

Barely half as wealthy as the west European countries, the central European
nations need to grow more than twice as fast to converge with them. The
absence of convergence breeds a sense of permanent backwardness.
Unemployment remains high at 15 per cent in Poland. Budget deficits have
been abundant, ballooning to 10 per cent of gross domestic product in
Hungary. Apart from Slovakia, none of these countries has reformed
significantly in the past half decade.

This malaise has coincided with their EU accession. In a prescient paper of
1996, Jeffrey Sachs and Andrew Warner warned that the central European
countries would not converge economically with western Europe if they did
not cut their high taxes, reduce their excessive social transfers and
deregulate their labour markets. A decade later, their public expenditures
linger at 46 per cent of GDP, the EU average.

Formally, the EU has not forced these countries to maintain high public
expenditures, but its social charter and political pressures point in that
direction. Initially, EU accession contributed to deregulation, but its last
part was  dominated by illiberal chapters, such as the common agricultural
policy.

After having joined the EU, the central European countries behave as Greece
did under prime minister Andreas Papandreou from 1981 to 1996. Greece
maintained a large budget deficit, relying on EU subsidies, and undertook
few reforms. Growth was poor. Pious complaints from Brussels make little
difference as long as they do not influence the flow of subsidies.

Two-thirds of the much higher growth in the former Soviet countries can be
explained by their far lower public expenditures. The only other significant
factor is the high world prices for oil. The ex-Soviet countries have become
part of the high-growth belt from China via India to the Baltics and they
look to the economic models of east Asia, with low taxes, limited social
transfers and free labour markets, rather than the EU.

Until 1998, good things went together  privatisation, liberalisation,
macroeconomic stabilisation, democracy, good governance and economic
growth.

Cynics said that the closer to Brussels a country, the better off it was.
Now, the further a country is from Brussels, the higher its growth is. The
Russian financial crash of 1998 was the dividing line. It forced post-Soviet
countries to make large cuts in public expenditures to balance their
budgets. With the exception of Belarus, Turkmenistan and Uzbekistan, the
post-communist world is dominated by private enterprise, free markets and
low inflation.

Admittedly, the Baltic countries  Estonia, Latvia and Lithuania  are EU
members and they perform well, with growth  rates of around 8 per cent a
year, balanced budgets, low flat taxes and moderate public expenditures.

But the cause of their good fortune does not lie in their EU accession, but
in their fresh memory of horrendous financial crises and a potent Russian
threat. They have resisted accusations of both tax dumping and wage
dumping by west European leaders.

Central Europe’s problem is not political instability. Until recently, it
had relatively stable, but irresponsible governments, which did little while
their economic problems deepened. The recent political turmoil in central
Europe may be welcomed as a wake-up call. The Baltic countries are
maintaining their stellar economic performance by changing government once
a year.

In 1992, the grand old Hungarian economist Janos Kornai noticed that the
central European states had developed a premature west European social
welfare system. Their prime dilemma is economic and a general EU problem.
Like the EU, central Europe needs to overcome its poor economic dynamism
through lower taxes, reduced social transfers and freer labour markets.
Possible cures are increasing tax competition from the east and freer labour
migration within the EU.
———————————————————————————————–
The writer is senior fellow at the Peterson Institute for International
Economics, in Washington, D.C., www.petersoninstitute.org.
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15.                 RUSSIAN SUBVERSION IN CRIMEA

Jane’s Intelligence Digest, United Kingdom, Friday, 3 November 2006

On 11 October, President Viktor Yushchenko ordered the Security Service of
Ukraine (SBU) to upgrade its operational activities in the Crimea.

The SBU was given two months to, ‘look into the efficiency of intelligence,
counterintelligence and operative measures in order to identify, prevent and
halt intelligence, subversive and other illegal activities in the Crimea by
foreign secret services and NGOs’.

The SBU was also ordered to develop a plan of action to, ‘neutralise’
activities in the Crimea, ‘which harm Ukraine’s sovereignty and territorial
integrity, pose security threats and incite ethnic, racial and religious
tension’.

Russia’s subversive tactics in supporting separatism among ethnic Russians
in the Crimea and eastern Ukraine are long standing. Kiev’s ability to
launch counter-measures are hampered by two factors, as clearly noticeable
during the well-organised anti-US and anti-NATO demonstrations in the
Crimea.

[1] There is a lack of political will by Yushchenko and within the
presidential secretariat and the National Security and Defense Council
(NRBO) to tackle the separatist threat.

These two institutions are the president’s two remaining levers of influence
following this year’s constitutional reforms that transferred much of
presidential powers to parliament.

[2] Second, there are divided loyalties between Kiev and Moscow within the
SBU and Interior Ministry (MVS). In 1994-1995 President Leonid Kuchma
successfully used non-violent tactics implemented by the SBU and the NRBO to
marginalise Crimea’s separatist voices.

Following a decade of rampant corruption under Kuchma, including the SBU’s
involvement in arms trafficking and repression of the opposition reminiscent
of the Soviet KGB, the SBU’s competence is now in doubt.

In the Crimea and eastern Ukraine, regions loyal to pro-Russian Prime
Minister Viktor Yanukovych’s Party of Regions, the local SBU branches remain
highly sceptical of Yushchenko. Further, the Crimean parliament, dominated
by the Party of Regions, has often disregarded Yushchenko’s directives.

Under Kuchma a number of officials from Russia were declared persona non
grata for short periods in retaliation for inciting separatism in Ukraine.
Under Yushchenko, Kiev’s official policy has hardened, especially following
the June protests in the Crimea where Russian politicians gave inflammatory
speeches.

After Yushchenko’s inauguration in January 2005 former senior Kuchma-era
officials sought refuge in the Crimea.

In March 2006, the Party of Regions and its three extreme left allies – the
Communist Party, the Progressive Socialist Party and the Union party – swept
elections to the Ukrainian and the Crimean parliaments, gaining over 70 per
cent of the vote in the Crimea. Many of the former Kuchma figures re-entered
the political stage on the back of the election wins of Party of Regions.

These three political constituencies have allied with Russian intelligence
(FSB) and the Black Sea Fleet’s intelligence (GRU) and military officers to
incite anti-US and anti-NATO demonstrations, pickets and rallies in the
Crimea.

These reached a crescendo in June and led to the first ever cancellation of
joint military exercises with the US and with other NATO countries through
its Partnership for Peace (PfP) programme. These exercises had been
regularly held in the Crimea and in military bases in western Ukraine since
1997.

Russia has supplied intelligence on the location and plans for military
exercises and has given personnel to increase attendance at the rallies and
demonstrations. During the June rallies many of the leading organisers were
spouses of serving Russian Black Sea Fleet officers.

Russia is also involved in attempts to incite inter-ethnic strife in the
Crimea by fomenting clashes between Tatars and Russian-speaking Slavs.

The presidential secretariat has told JID of its fears that Russia is
attempting to ‘Abkhasize’ the Crimea by repeating its successful tactics in
Georgia’s two frozen conflicts, Abkhazia and South Ossetia.

The presidential secretariat has told JID that it has reports from loyal SBU
officers who have reported financial support being given to ethnic Russian
nationalist NGOs in the Crimea.

Logistical support is given to these groups by the Black Sea Fleet and by
nationalist youth groups from Russia who are dedicated to the Kremlin, such
as Nashi, a pro-Vladimir Putin NGO that has been involved in racist and
anti-Georgian violence in Russia.
                       RUSSIA’S STRATEGY IS TWO FOLD
[1] First, to foment instability in the Crimea to halt Ukraine’s drive to
join NATO. The anti-NATO and anti-US rallies in June in the Crimea have
reinforced the concerns of those NATO members that deem Kiev’s

membership aspiration in the organisation as impracticable in the near future.

[2] Second, Moscow seem to want to make use of increased political
volatility in the Crimea as a way to pressure Kiev to seek its assistance
which would enhance its leverage over its weaker and anxious neighbour. In
late October, President Putin offered to provide assistance to Ukraine if
Slav-Tatar tension increased in the Crimea.

Such protection would be reminiscent of similar tactics in Georgia’s two
separatist enclaves where Russia first incited inter-ethnic tension and then
offered ‘CIS’ (in reality Russian) ‘peacekeeping troops’ who have frozen the
conflict in Moscow’s favour. As Putin said, ‘Russia cannot be indifferent to
what happens in Ukraine and the Crimea’.

Related to this question, is Russia’s tactics of organising a lobby within
the Crimea and Ukrainian government to support its calls to extend the
twenty year lease for Russia’s Black Sea Fleet in Sevastopol.

The lease was negotiated in 1997 as part of a package of documents that
obtained Russian recognition of Ukraine’s sovereignty and territorial
integrity and is set to expire in 2017.

Ukraine’s constitution bans foreign bases but made a ‘temporary’ exception
with the Black Sea Fleet. The Anti-Crisis coalition, uniting the Party of
Regions, Socialists and Communists, has 240 deputies and is therefore unable
to change these constitutional provisions, which would require 300 votes.

Defense Minister Anatoliy Hrytsenko, a Yushchenko loyalist, has rejected
extending the 20 year lease and turned down offers of security assistance
from Russia. Prime Minister Yanukovych has supported negotiations to extend
the Russian base agreement beyond 2017.                     -30-

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16. “HENADIY MOSKAL: THERE ARE NO AUTHORITIES IN CRIMEA”
        Crime strong, government weak in Crimea – Ukrainian president’s envoy

INTERVIEW: With Henadiy Moskal,
President Viktor Yushchenko’s Representative in Crimea
BY: Valentyna Samar, Zerkalo Nedeli, Kiev, in Russian 4 Nov 06; p 3
BBC Monitoring Service, United Kingdom, Thursday, Nov 09, 2006

Ukraine’s Crimea is not in danger of becoming another Kosovo, but central
authorities must keep their eye on the region, Henadiy Moskal, President
Viktor Yushchenko’s representative in Crimea, has said in an interview. The
authorities in Crimea are weak and have reinforced their position with
criminals, he said.

Decisions by the central authorities to rectify such issues as the
allocation of land were being sabotaged because Crimean leaders are not
interested in solving the problem and Kiev is failing to punish them for
their inaction, according to Moskal.

He noted there appears to be friction between criminals who served time in
jail and their fellow criminals who “got into parliament”.

The following is the text of the interview with Moskal by Valentyna Samar,
entitled “Henadiy Moskal: there are no authorities in Crimea”, published in
the Ukrainian analytical weekly Zerkalo Nedeli on 4 November, subheadings
have been inserted editorially:

Sometimes even this happens: right after the Orange Revolution in the
president’s secretariat, they began to think seriously about eliminating
such an unnecessary constitutional institution as the president’s permanent
representative in Crimea. For a long time the office of the presidential
representative was empty altogether.

But after Henadiy Moskal occupied it, it turned out that the president’s
representative office, though it has few powers, can be a very effective
instrument of control over the situation in the autonomous republic.

And if earlier under [former] President Leonid Kuchma, the presidential
representative was called his eyes and his ears, under President Yushchenko,
you can say a voice appeared as well – it is a rare day that goes by without
Mr Moskal giving an interview or commentary or his statements appearing in
the media. As a rule they are uncompromising, but nevertheless the general
has not said anything superfluous.
                              WEAK POWER IN CRIMEA
Without the obvious support of any political force represented in the
Crimean parliament, Mr Moskal actively works with public organizations.

I suspect that this is not least of all because there are nearly none of the
former head policeman’s “godfathers” in the “third sector”. But there are
many of them within the bodies of power in the autonomous region.

That is what he is asked about most frequently. We tried to get answers to
questions on another level.

[Samar] Mr Moskal, how do think the current competition for power between
the president and the prime minister [Viktor Yanukovych] will affect
relations between the centre and such a peculiar and difficult-to-manage
place as the Autonomous Republic of Crimea?

Practically all power in Crimea today belongs to the Party of Regions [which
Yanukovych heads]. Does the presidential secretariat have a vision on how
the head of state can keep control over Crimea?

[Moskal] First, there will be no Crimean-variety reform of local
self-government in the country. Second, neither the president nor the centre
are threatened by anything as long as Crimea has the kind of power it has
today.

To be honest, there is no power here. There is merely a sham and appearance
of power.

The person who worked out this model was an absolutely short-sighted person.
Who proposed Anatoliy Hrytsenko, whose authority in Crimea is like a
temperature of minus zero, as speaker of the autonomy’s parliament?

That should have been known by the person who was the “watchdog” here.
And when they tried to choose the same kind of candidate for prime minister,
well the centre has nothing to worry about, since this power is absolutely
helpless.

[Samar] Weak power carries another threat. And what is happening now – the
exacerbation of all chronic problems from land to interethnic relations –
will not end in anything good.

[Moskal] Yes, there is an exacerbation of problems which should be resolved
by the local authorities, and not by the centre. First is the land issue. In
order to bring order to this in Crimea, the law needs to be changed, the law
on local self-government…[ellipsis as published]

[Samar] Or maybe execute the law which already exists?

[Moskal] …[ellipsis as published] or adhere to the existing law. But you
see for yourself that problems are not being resolved.

There is a firm trend towards more and more land-grabbing and towards
building houses on it. People in parliament say: why is Moskal sounding an
alarm, those are shacks and not homes.

Well, shacks can be built out of cardboard, but construction here is being
built on foundations, electricity is being put in and water lines extended.

It is absolutely clear that no-one is going to leave this land, that is why
people are putting their money there. And the Crimean authorities make
statements, so endearing to my heart, that the problems are being
resolved…[ellipsis as published]

And time is passing by. What is the current leadership being led by? First –
a lack of desire to do anything. Why burden yourself with such difficult
problems? Let the next people come to power take care of it. And everything
is very simple.

The situation with land-grabbing is like it once was in Moscow: all visitors
ran to get in line at the central shopping centres in order to be certain to
get at least something. And the same is going on here.

Along with the Crimean Tatars who really do need land for homes, people who
don’t need it are taking part in the protests and there are people who have
staked claims in several protest areas at the same time.

The authorities need to put together a list of all those hopefuls from all
the protests, and there are 53 of them today; and they need to sift through
those lists to make sure that one person is not claiming several plots of
land, and they need to check that the rest really do need land and have the
right to it in accordance to the current law.

There will turn out to be not many such people and sessions at local
councils should review their documents and provide them with land.

[Samar] That’s true, but you are forgetting the main reason – the corruption
which is spread from the very bottom to the very top.

And that is exactly why nothing is being done for transparency and why work
to inventory land is not being done and why there has not been one meeting
of the National Security and Defence Council [NSDC] on Crimean issues and
no commission on the matter has come to a logical conclusion, and the
land-grabbing fiasco is continuing.

[Moskal] For some reason in our country, only a few drops of water or
nothing at all falls from a big cloud. No serious criminal case has gone to
court after the work of all these commissions.

Because everyone they dug down to turned out to have protection, and there
is not the openness today that there is in developed democracies.

For example, why is former Italian prime minister Berlusconi being dragged
from court to court today and he is not shouting about it; whereas here,
whoever you touch starts shouting about political persecution and political
repression. And all the land has been divided up either for bribes or for
knowing someone inside.
                       NO REPERCUSSIONS FROM KIEV
[Samar] There are fairly pessimistic predictions on the effectiveness of the
president’s decree on Crimean issues after the last meeting of the NSDC
[National Security and Defence Council].

Mr Yushchenko gave devastating criticism to both the Crimean and central
authorities for not carrying out the former NSDC decision, but the cabinet,
from the lips of [Deputy Prime Minister Dmytro] Tabachnyk, did not agree,
since they think the government is doing a lot for Crimea…[ellipsis as
published]

[Moskal] Meetings of the NSDC must not only state the fact that the previous
decision is not being carried out. If it is not being carried out, then that
means the guilty should be punished. And today the president’s
representatives daily monitor the execution of the latest decision.

Both the Crimean parliament and the Council of Ministers and local bodies of
self-government tossed the NSDC decision in the trash. They did not even
begin nor intend to begin fulfilling it. If they got away with it once, then
what is there to fear? The NSDC will meet a third time and the same thing
will happen.

[Samar] Is that sabotage?
[Moskal] It is.

[Samar] On what level?
[Moskal] On the local level.

[Samar] So you want to say that the Crimean party leaders, that is the
leadership of the cabinet don’t have anything to do with it, but it is local
Party of Regions members who have initiated the sabotage of the NSDC
decision on their own?

[Moskal] I would not say they are doing so consciously. There is such a
thing in criminal law known as criminal arrogance, that is – what if I get
away with it? And that is why the NSDC needs to be tougher today. A
month has gone by and what has been done? Nothing.

We don’t need to hear more, we need conclusions. You simply can’t continue
turning Crimea into a seat of instability! I mean there were no such mass
acts of land-grabbing even in the first years of Crimean Tatars returning to
their homeland!

[Samar] So, we can say that today the NSDC is completely inactive as a lever
of power in the hands of the president, at least as far as Crimean land
issues are concerned?

[Moskal] I want to tell you one thing; on the local level the NSDC decision
will not be implemented. Because the current authorities in Crimea do not
gain from it.

If all the land is inventoried and all the boundaries are drawn, foremost
around national parks, then everything will be decided at the level of local
councils and not in the parliament and government of Crimea.

And then the authorities of the autonomy will not have the tool of
distributing land. And then what will they do, simply talk about NATO and
the Russian language meeting after meeting?

If you do everything envisioned by the law, that means making corruption
impossible and the only thing left to do is enforce strict control over the
legality of decisions by local bodies of power.

[Samar] If I am not mistaken, it was at your suggestion that the president’s
decree envisions opening a branch of the Ukrainian State Property Fund [SPF]
in Crimea – in contrast to the existing property fund of the autonomy, which
has double subordination. This serious step by the centre is taken by those
in power in Crimea as revoking the authority of the autonomy.

[Moskal] And why is it revoking the authority of the autonomy? If
agricultural firms engaged in vineyards and wine-making and which are
government property are continually giving up land along the coastline for
construction purposes and doing so upon decisions of the Crimean parliament,
then there is a need to open a branch of the SPF.

And every morsel of land given away should be given away based on its
permission. And I guarantee you that [SPF head Valentyna] Semenyuk will not
give such permission today.

There is a branch of the SPF in every region and there is a department of
communal property. So let these people take care of communal property, and
everything else will go to the SPF.

A document is now being prepared in the secretariat to repeal the decree by
[former] President Leonid Kuchma dated 1995 on privatization departments in
Crimea which was absolutely illegal.

Second, we need to introduce changes to the constitution of Crimea and close
the hands-on, in-the-pocket Crimean Accounting Office.

It exists to juggle accounts and principles appear only when someone has to
be kicked out of office. And if you want to have effective control over the
use and accrual of budget funds, a serious branch of the Ukrainian
Accounting Office has to be opened.
                          KEEPING ITS EYE EVERYWHERE
[Samar] It seems that even without all of that, the president’s
representative office today is keeping its eye on every single decision by
the Crimean parliament and government. The number of your suits filed in
court against the decisions of local and Crimean authorities beats all
records.

Your relationship with speaker Hrytsenko is already on the verge of mutual
idiosyncrasy. Accusations of the criminal past of deputies is a separate
subject. Is this the position of the secretariat and the president or that
of the “executioner at large”?

[Moskal] Well, I am not a man who is going to wait for instructions from the
secretariat. When I came here and saw who had got into the Crimean
parliament, I asked: guys, whose stupidity is this?

In Crimea only newborn children do not know that these people are criminals.
There are 225 unsolved murders. There are fathers and children in the shadow
of these victims and they are waiting for the government to see justice
prevail.

In my first days here I rejected bodyguards and freely walk around the
streets. And people, including former police department employees, stop me
and ask: “How can this be? This guy was killed, that one kidnapped, this
other one tortured and shot and no-one has been punished”.

I had to react to that as both the president’s representative and as a
person. And then I said in the secretariat: we must not allow Crimea to turn
into Latin America of the 1970s.

I asked the interior minister [Yuriy Lutsenko] to set up a special
investigative group and it was set up on instructions by the minister and
the prosecutor-general.

[Samar] We know that this group, under the leadership of department chief
Maj-Gen Vasyl Paskal, works absolutely autonomously, with a base that is not
even in Crimea, but rather in Odessa.

Why is that so? Is there pressure or a threat of danger to members of the
group or a lack of trust in Crimean law enforcement officers?

[Moskal] The group works that way so that none of that takes place. And the
group’s activity will be successful if no-one hinders it.

[Samar] You don’t even have to disband this group, it is enough to switch
the investigators as the prosecutors did with regard to the investigative
group in the [Oleksandr] Melnyk case…[ellipsis as published]

[Moskal] There are other ways, too: for example, burdening the group as much
as possible with cases from other regions…[ellipsis as published]

[Samar] Crimean parliamentary deputy Oleksandr Melnyk, who is suspected of
committing and organizing murders, and who, despite a signed statement to
not flee, left our territory unhindered, said in an interview that pressure
was being put on people detained in Odessa and illegal methods of getting
evidence were being used against him.

[Moskal] Mr Melnyk thinks that when his former pals testify against him,
then something is amiss. As far as I know, those who have already served
sentences are giving the most testimony to investigators, probably because
back then their friends promised they would help them…[ellipsis as
published]
                            CRIMINALS WITH A GRUDGE
Samar] You mean to say that these people are offended that they were not
“taken care of” in the zone [prison]?
[Moskal] I think so, most probably. Because it turned out that some went to
jail and others ended up in parliament. And those people also have a sense
of social justice…[ellipsis as published]

[Samar] As far as I know from words by the leaders of the group, not a day
goes by that someone doesn’t come to them with a confession. And it
happens that there are three, five or 10 appearances with a confession.

[Samar] Where is Voronok, leader of the [alleged criminal group] Seylem
today?
[Moskal] I don’t know where he is, or what intentions he has or what
influence he has. But I know the group intends to return to its documented
criminal activity.

[Samar] Law enforcement officials call deputy Melnyk one of the leaders of
Seylem, but journalists call him the “eyes” of Donetsk, or even of
[Ukrainian MP and tycoon] Rinat Akhmetov [who is from Donetsk].

But in an interview with Ukrayinska Pravda, Mr Akhmetov denies anything to
do with Melnyk. He says he has no interests here at all, since there is
nothing to look after except perhaps a vacation home.

[Moskal] I believe Mr Akhmetov. And really, what can link this guy and the
richest man in the country? By the way, I did not call Melnyk the “eyes of
Donetsk”. I called a different deputy that (Anton Pryhodskyy – author). I
think this is all Melnyk’s bragging.

But when there is no-one to lead, someone has to take power. Melnyk always
accompanies Hrytsenko on trips and to meetings, both to Moscow and to
Kiev.

There is weak power which has reinforced itself with criminals. I don’t see
anything else here.

[Samar] The last leak of information from the investigative group is that
Oleksandr Melnyk is suspected of having something to do with the 2001
murder of the Krotenko husband and wife – the owners of the popular
Kozatskyy Shlyakh restaurant.

Besides that, we hear that another Crimean deputy was directly involved in
the crime. If this is the influential deputy I am thinking of, then won’t
the speaker lose the support you were talking about in case of his arrest or
sudden departure? And this could lead to some other changes in the
leadership of the autonomy?

[Moskal] It is impossible to establish another configuration in parliament,
besides the one that is there today. But, based on statements by the leader
of the Russian Bloc on quitting the coalition, changes can’t be ruled out.
But probably what will happen is that none of the criminals will put
pressure on the deputies.

[Samar] As far as parliament is concerned, yes, but I meant the
prerequisites for changing the prime minister who depends entirely on the
speaker today, through whom, people say, Mr Melnyk and Mr Lukashov
exert their influence…[ellipsis as published]

[Moskal] As far as I know, the prerequisites are already set up, since the
council of ministers is not satisfied with [Crimean prime minister] Mr
Plakida and they have more complaints against him than the president does.

[Samar] So, one against the other and?..[ellipsis as published]
[Moskal] I have no doubt there will be a change of the head of the
government. Hrytsenko’s candidacy did not justify itself and the speaker
will not be able to synchronize his own management of both parliament and
the government.
                        TATARS “A RESTRAINING FACTOR”
[Samar] Whose interests could come into play in appointing the new leader of
the Crimean parliament? Those of Akhmetov or [Dmytro] Firtash [a tycoon
primarily known for his business in the gas industry]?

[Moskal] These people have no business interests in Crimea! There are only
three stable, working structures, the “whales” of the budget – the state
enterprises Chornomornaftohaz, Titan and the Crimea Soda Plant…[ellipsis
as published]

[Samar] But the last two are controlled by Firtash, by the way!
[Moskal] What difference does it make whose enterprises they are? The
important thing is that investment flows and the enterprises’ work is
stable.

[Samar] Of course, it is only with us that politics and business cannot be
separated. And so who influences politics in Crimea today and who is
interested in constant instability here?

[Moskal] Completely different factors influence events in Crimea. Not inside
of Ukraine, but from without. Since the president and the government and the
“Donetsk group” and Crimeans are interested in stability here. Crimea will
never be [the Moldovan breakaway region] Dniester and it will not be
Abkhazia or Kosovo.

And there is no Crimea-wide leader who can take up the role of [incumbent
president of Dniester region, Igor] Smirnov or even [pro-Moscow Yuriy]
Meshkov [who was president of Crimea in 1994]. And those who have been
offered it, have refused. They have offered everyone, but they all see they
are not up to it.

[Samar] Who is offering that role and to whom?
[Moskal] There were attempts, but it won’t happen. The people they made the
offers to have heads on their shoulders. And besides, there are Crimean
Tatars. No matter what anyone says, that is the main restraining factor here
today in Crimea against any anti-Ukrainian scenarios.

Yes, they have a lot of complaints against the authorities and in most cases
justified ones. But it is exactly they who are the restraining factor, the
ones who do not allow Crimea to become a Dniester or South Ossetia.

[Samar] Okay, so no-one can take up the role of a new Meshkov, but outside
influence is coming via someone. Everyone knows to which organizations and
party structures financing from Moscow comes. There is a NSDC resolution

and a number of instructions to special services…[ellipsis as published]
[Moskal] Hang on a second, we are not in Georgia and no-one here has caught
anyone by the hand.

[Samar] That’s just it…[ellipsis as published]
[Moskal] Let’s remember the words to a song by [Soviet-era bard Vladimir]
Vysotskiy: “Where there are not many real unruly types, there are no
leaders”. Don’t take Crimean marginals seriously and don’t create
advertising for them.

All these pro-Russian fronts and “movements” are vaudeville theatre. But of
27 regions, if anyone wants to set things off, they can’t do it anywhere but
in Crimea. The NSDC decision was made so no-one goes to sleep, so no-one
relaxes but rather they work as they should.                   -30-

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17. TATARS INHABIT THE MARGINS IN CONTESTED CRIMEA

LETTER FROM CRIMEA: By Michael Foley
Irish Times, Dublin, Ireland, Wednesday, Nov 01, 2006

For many it is where they spent some of the best months of their youth, at
Young Pioneer camps or on holidays.

Talk to Ukrainians driving around the peninsula and they will point to where
their camp was and what mountains they climbed. It can only be compared to
Irish people recalling their time in the Gaeltacht.

Crimea is a beautiful place. Ride the cable car up Ai Petri mountain and you
see eagles soaring. Its coastline is full of little inlets and beaches and
the landscape is dotted with vineyards.

As Ukrainians tell their stories someone will propose a toast. Vodka will be
held aloft: “to Ukrainian Crimea”. Then down goes the vodka.

The salute is politically loaded because Crimea is a contested place. In the
Black Sea resort of Alushta, the main rival to the more famous Yalta a few
miles up the coast, the season is coming to an end.

The bars and restaurants are only half-full, but it is still warm and many
people are out walking until late on the long promenade that borders the
beach.

Ukrainians like to live life outside when the climate allows, so groups of
young people sit and talk on the promenade and drink a few beers. Others

pay a few kopiyas to sing a song to the home-made karaoke machines. The
atmosphere is friendly.
                  UNIFORMED RUSSIAN NATIONALISTS
But a little later small groups of young men stand around, eyeing other
similar groups. Some are wearing T-shirts proclaiming “Russia” or “Ukraine”.
A few insults are thrown, but little else happens even if the atmosphere is
tense.

Someone is wearing what looks like an old-fashioned military officer’s
uniform, with large peaked Russian- style cap, tunic and trousers, with a
wide red stripe tucked into boots. Beside him is another solider-like
figure, wearing a beret. Both are armed with long whips. They provide
security, we are told.

But who are they? Cossacks, is the answer. A walk around the town shows

the “Cossacks” are providing security everywhere.
Crimea never had Cossacks.

They were in other parts of Ukraine, and the country is quite proud of its
Cossack connection. One of the best Ukrainian vodkas, Hetman, is named

after the title of a Cossack commander.
      THEIR ENEMIES ARE THE TATARS, & UKRAINE
Here in Crimea though, the Cossacks are Russian-speakers, whose main
function, they claim, is to defend the Russian Orthodox Church.

It is also a moot point as to whether they are all actually Cossacks at all,
but uniformed Russian nationalists. Their main enemy are the Tatars, and
secondly Ukraine.

The Tatars, under Genghis Khan, were once part of an empire that stretched
from Mongolia across central Asia and into eastern Europe. The Crimea Tatars
converted to Islam in the 12th century.

Crimea later became part of the Ottoman Empire and remained so until
Catherine the Great took Crimea, so giving Russia access to the Black Sea.
Catherine encouraged others, especially Russians, to settle in Crimea in
order to change the population balance. By 1863 the Tatar population was
outnumbered by immigrants.

In 1944 Stalin ordered the deportation to central Asia of all the estimated
remaining 200,000 Crimean Tatars for their alleged collaboration with the
German occupiers.

In 1954 the peninsula was handed to Ukraine as a “gift” from Russia to mark
the friendship between the two peoples. In 1991, when Ukraine gained its
independence, it inherited the peninsula and its overwhelmingly Russian
population.

Crimean Tatars started returning in the 1980s. The number increased rapidly
after Ukrainian independence. Official figures show that 244,000 have now
returned. Tatar leaders say another 200,000 want to come back.

Today there is tension. Both Russians and Ukrainians say the Tatars want
returned to them the houses and land that belonged to their families before
the expulsion. The Cossacks also claim that Tatars are linked to Islamic
fundamentalist organisations.

The Tatar legacy is used as part of the tourism industry. Restaurants offer
an “authentic” Tatar experience. Real Tatars, though, are a marginal,
dispossessed group.

There are frequent fights between Tatars and members of the Russian
majority. The Tatars also complain of police harassment.
Meanwhile, the Cossacks provide “security” armed with their bullwhips,
claiming they are making Crimea safe for the Russian majority.

There are not many Irish links with Crimea, but there is one. It is now 150
years since the end of the Crimea War. That was covered for the London Times
by a man named William Howard Russell. Russell is considered the father of
war correspondents and could be considered the first reporter in the modern
sense.

His coverage had a huge impact. One government fell, a “War Department” was
created and Florence Nightingale brought her nurses to the Crimea to tend to
the British wounded. Russell, who is commemorated in St Paul’s Cathedral,
was from Tallaght in Dublin.                            -30-
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18. PROFILE: UKRAINIAN PRESIDENTIAL CHIEF-OF-STAFF BALOHA

BBC Monitoring Service, United Kingdom, Sunday, Nov 12, 2006

Viktor Baloha, a former emergencies minister and regional governor, was
appointed head of President Viktor Yushchenko’s secretariat on 16 September.

Amid deteriorating relations with Prime Minister Viktor Yanukovych,
Yushchenko apparently sees Baloha as a tough manager who will be better
equipped to shore up his waning influence than his predecessor, Oleh
Rybachuk, who was widely seen as ineffectual.

Baloha’s new role has even been compared to that of the notorious “crisis
manager” Viktor Medvedchuk, the head of President Leonid Kuchma’s
administration and a one-time ally of Baloha in the United Social Democratic
Party.

Baloha may also attempt to build bridges with Yanukovych, with whom he says
that he has enjoyed good personal relations since the late-1990s, when they
both served as regional governors.

In an interview shortly after his appointment, he said: “I came here in
order to bury the hatchet of war. I’m hoping to calm down the radicals in
both [Yanukovych’s] Party of Regions and [pro-presidential bloc] Our Ukraine
and finally halt the senseless confrontation.”

Baloha is reported to have substantial business interests in Transcarpathian
Region, but he plays down suggestions that he is super-rich.

According to the Ukrayinska Pravda web site, in 2005, his family reported
income of around 200,000 dollars and shareholdings worth around 300,000
dollars. Baloha’s wife, Oksana, is a shareholder in a number of businesses
in the transport, furniture, food, media and other sectors.
          TRANSCARPATHIAN BUSINESSMAN, GOVERNOR
Born in a Transcarpathian Region village in 1963, Baloha graduated from the
Lviv trade and economics institute. After military service, he returned to
his native region to work in consumer cooperatives.

From 1992-98, he was director of the Mukacheve firms Ryb-promin and Barva.
Baloha’s businesses were involved in the trade, food processing,
non-alcoholic beverages and construction sectors.

In 1998, Baloha was elected mayor of Mukacheve. Around this time, he appears
to have become associated with Medvedchuk and joined his United Social
Democratic Party (USDP).

Medvedchuk was elected to parliament in 1998 from a Transcarpathian
constituency, and he is believed to have arranged Baloha’s appointment as
regional governor in 1999.

As governor, Baloha built up the USDP presence in the region, where at one
time up to 80 per cent of bureaucrats were said to be party members. He also
appears to have facilitated strong support for the reelection of Leonid
Kuchma in the 1999 presidential election.

In 2000, however, Baloha appears to have broken ties with the USDP and
thrown his support behind Volodymyr Lytvyn, the then head of Kuchma’s
administration and a fierce opponent of Medvedchuk.

Facing imminent dismissal, Baloha eventually resigned in June 2001. The
Prosecutor-General’s Office subsequently opened a case against him for
financial abuses during his time as governor.
                                     OPPOSITION POLITICIAN
Baloha’s resignation came shortly after parliament sacked the government of
Viktor Yushchenko. Baloha soon joined forces with the former prime minister
and managed his Our Ukraine bloc’s 2002 parliamentary campaign in
Transcarpathian Region.

Baloha was elected to parliament in a Transcarpathian Region constituency.
He was also elected mayor of Mukacheve.

As an MP, Baloha was unable to hold another elected post and stepped down

as mayor. In the subsequent mayoral election in June 2003, Baloha’s cousin
(some sources indicate brother-in-law) and business partner Vasyl Petyovka
ran as the Our Ukraine candidate.

Although Petyovka was initially declared the winner, the result was
successfully challenged in court and Petyovka was eventually removed from
the post by presidential decree.

In April 2004, Baloha himself ran in the scandalous repeat mayoral election.
The election developed into an international scandal after observers
reported large-scale irregularities.

The candidate backed by the USDP was declared the winner, while Our Ukraine
said that the result had been falsified to deny Baloha victory. The election
was widely seen as a rehearsal for the presidential election that autumn.
                                     PRESIDENT’S MAN
After the Orange Revolution, Baloha returned to Transcarpathian Region as
governor. He also headed the regional branch of the pro-presidential party
Our Ukraine People’s Union.

During his time as governor, Baloha was accused of putting pressure on
businessmen and political persecution of USDP supporters, including the
former governor, Ivan Rizak. Baloha denied these allegations.

After the corruption scandal that led to the dismissal of Yuliya
Tymoshenko’s government in September 2005, Baloha was appointed

emergencies minister.

During his time in office, the ministry dealt with, amongst other things, a
bird flu outbreak, a mid-winter heating breakdown in the Luhansk-region town
of Alchevsk, and explosions of shells at the Novobohdanivka munitions depot.

Baloha appears to be a close friend of the Yushchenko family. In January
2006, he joined Yushchenko and Prime Minister Yuriy Yekhanurov for a
traditional swim in the icy Dnipro river to mark the feast of Epiphany.

Baloha and Yekhanurov are believed to have been behind an unsuccessful
attempt to expel Yushchenko’s “dear friends”, the group of
businessmen-politicians discredited in the corruption scandal, from
leadership positions in the Our Ukraine People’s Union ahead of the March
2006 parliamentary election.

Baloha himself did not run for parliament in election. After the election,
Baloha, together with Yekhanurov, advocated a grand coalition between Our
Ukraine and the Party of Regions.

Baloha remains a powerful figure in Transcarpathian Region, where Serhiy
Ratushnyak, a former business competitor and now mayor of Uzhhorod, is

seen as his only real rival.

Baloha is said to have considerable influence over the regional council,
where Our Ukraine is in a grand coalition with the Party of Regions.

Baloha has repeatedly been accused of cronyism and nepotism in appointments
in his native region. Vasyl Petyovka now serves as Mukacheve mayor.

While the godfather of Baloha’s child, Oleh Havashy, replaced him as
regional governor. Baloha’s younger brother, Ivan, a deputy regional
governor, has replaced him as head of the regional branch of Our Ukrainian
People’s Union.                                      -30-
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19.    “BALOHA TOOK OVER, BALOHA TOOK OVER”
 Ukrainian presidential office chief replaced by brother as regional party boss

ANALYSIS AND COMMENTARY: By Vitaliy Pyrovych
Delovaya Stolitsa newspaper, Kiev, in Russian 23 Oct 06
BBC Monitoring Service, United Kingdom, Tuesday, Oct 24, 2006

Ivan Baloha, the younger brother of presidential office chief Viktor Baloha,
has been elected leader of the Transcarpathian branch of President Viktor
Yushchenko’s Our Ukraine People’s Union party, a business paper has
reported.

Ivan Baloha took over from his brother, who apparently does not believe in
democratic principles, it wrote.

Nothing can now shake the positions of the Baloha family and their allies in
the Transcarpathian region, the paper concluded. Their only strong local
rival is Uzhhorod mayor Serhiy Ratushnyak, it added.

The following is the text of the article by Vitaliy Pyrovych entitled
“Baloha turned over, Baloha took over” published in the Ukrainian newspaper
Delovaya Stolitsa on 23 October; subheadings are as published:

The name of the leader of the Transcarpathian regional branch of
[propresidential] Our Ukraine People’s Union [OUPU] party did not change
after its conference held to hear reports and elect new leadership.

From now on, state secretary [as published; head of the presidential
secretariat] Viktor Bahoha’s younger brother Ivan will be the father and
commander of Transcarpathian Our Ukraine members.

“Kuchmism” [policy attributed to former President Leonid Kuchma] seems
likely to have left an ineffaceable trace on Viktor Baloha, and the former
Social Democrat does not much trust democratic principles.

This is the reason why he entrusts leadership in business, region and party
only to the people close to him and toughly presses for their promotion.
                              FAMILY AND PARTY BRANCH
The head of the presidential secretariat and the leader of the regional OUPU
branch did not consider necessary to be present at his one-man show in the
party, having sent and application requesting his fellow party members to
relieve him of party work in Transcarpathian Region.

The head of the executive board of the regional branch, Volodymyr Shkryba,
reported to fellow party members instead of him. Mr Shkryba’s report in
which the state secretary’s style could be recognized was accepted with
enthusiasm, and then delegates began praising the only contender for the
regional party boss.

The head of the executive board passionately announced that Ivan Baloha was
the one who headed Our Ukraine’s headquarters in Mukacheve during the 2006
[parliamentary] election where Our Ukraine had gained the largest number of
votes.

The regional council head and Viktor Baloha’s former speech writer, Mykhaylo
Kychkovskyy, said that “Mr Ivan Baloha is the most authoritative and
enterprising regional councillor who put forward a number of interesting
ideas as the head of the regional Our Ukraine faction [in regional
council].”

MP Ihor Kril summed up praises and glorification: “Ivan Baloha is a young
and prospective politician who is not only aware of regional problems, but
is also able to resolve them.” No need to say, it was just impossible not to
elect this prominent figure unanimously.

However, grateful Ivan Baloha complained to councillors: from now on, he has
got “another heavy burden”. Indeed, Baloha Jr has a great deal of work: he
is a formal manager of family business, and he has also got the post of
deputy head of the regional state administration as a burden since summer.

Nevertheless, Viktor Baloha has decided that his brother is able to be
successfully engaged in “party drudgery”.

Generally speaking, the chief of the presidential secretariat likes to
settle things “in family way”: he nominated his child’s godfather Oleh
Havashy as governor, his own brother as the latter’s first deputy and his
cousin Vasyl Petyovka as Mukacheve mayor.

The same way, the brother from Kiev does not want to lose control over the
regional Our Ukraine organization, as it enables him to retain influence in
the regional council.

Judging from the majority formed in the regional council, Viktor Baloha
still exerts influence upon local organizations of Our Ukraine, the Party of
Regions, two Hungarian ethnic minority parties and some [opposition] Yuliya
Tymoshenko Bloc [YTB] members.

The fact that governor Oleh Havashy has been the regional Reforms and Order
Party leader for a long time is significant. Some interlocutors of Delovaya
Stolitsa consider Ivan Baloha’s penetration into Our Ukraine’s ruling bodies
in the capital to be his next “fraternal” task, as this will enable Viktor
Baloha to have eyes and ears in his native party.

Viktor Baloha who has never actively tackled Our Ukraine’s affairs until
recently (if his last year’s unrealized initiative to remove “dear friends”
[President Viktor Yushchenko’s closest entourage accused of corruption] from
party readership after the “corruption scandal” [in September 2005] is not
taken into account) now intends to exert more influence on the party policy
on a national scale.
                       PATRIMONY WITH ROTTENNESS
If Viktor Baloha just intends to strengthen his positions in Our Ukraine,
no-one and nothing can shake his position in his native region any more.

Even the fact that the Party of Regions has come to power and Viktor Baloha
himself has left the Cabinet of Ministers after being the major instrument
of Viktor Yushchenko’s influence in the executive authorities is unlikely to
result in changes on the regional Olympus of power.

Viktor Baloha’s nominee, governor Oleh Havashy is not present on the
government’s black lists, but he has become the first governor honoured to
be received personally by the prime minister [Viktor Yanukovych] last week.

It should be noted that Mr Havashy left Viktor Yanukovych’s office “alive
and unhurt”, though he got a reminder “of regional leaders’ personal
responsibility for preparation for winter season”.

It can be concluded that the discussion was primarily related to the
beginning of the heating season in Transcarpathian Region, as it had been
announced.

Other topics of discussion between the Transcarpathian governor and the
prime minister, in addition to the coming cold, remained a secret, but we
can presume that Viktor Yanukovych was unlikely to blackmail Oleh Havashy
with the governor’s post, trying to obtain proofs of his devotion.

Mr Havashy cannot be loyal to Mr Yanukovych at the expense of his relations
with Viktor Baloha. But the prime minister is not interested in escalation
of relations with the head of the presidential secretariat either, while
“incursions” on his Transcarpathian protege can make the latter the prime
minister’s personal enemy.

Mr Yanukovych understands that, if he wants to peacefully cohabit with the
president, pragmatic Viktor Baloha is the one who can become a bridge for
achieving this goal.

Formation of a Transcarpathian grand coalition with the Party of Regions’
participation can serve as a proof of this kind of Viktor Baloha’s
pragmatism, and this approach cannot but attract Mr Yanukovych.

By the way, the majority of regional councillors, including representatives
of the Party of Regions, approved Oleh Havashy’s report in September, and
Viktor Yanukovych is unlikely to bring any kind of accusations against the
regional state administration chief in public, as he enjoys his
Transcarpathian fellow party members’ support.

On the other hand, Viktor Baloha has his own regional interest in Viktor
Yanukovych. Viktor Baloha’s only rival in Transcarpathian Region is the
Uzhhorod mayor, Serhiy Ratushnyak, who cannot be “neutralized” through the
city council, the same way as through the regional state administration or
the [presidential] secretariat.

There are now levers of influencing a legitimately elected city mayor in the
president’s arsenal, the same way as in the government’s one.

However, if the Cabinet of Ministers “helps” to organize heating disruptions
in Uzhhorod (for example, the beginning of the heating season in Vinnytsya
was postponed due to short gas supplies by the Naftohaz Ukrayiny national
joint-stock company’s [dealing with oil and gas supplies] daughter
enterprises, and if the Party of Regions’ central office persuades its
fellow party members in the city council (without having six Party of
Regions members, the mayor will control only one-half of votes in the city
council – precisely 25 councillors) to leave the majority, Serhiy
Ratushnyak’s positions will become more vulnerable for Viktor Baloha’s
attacks.

However, another option is possible: wishing to press the head of the
presidential secretariat, Viktor Yanukovych will choose the latter’s
influential antagonist, Serhiy Ratushnyak, as his main support in this
region.

Then the Transcarpathian Region will witness another “local war”, and its
producers will be located in the presidential secretariat in Kiev.
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20.               “TARASYUK AND LUTSENKO OUT?”
             Ukrainian foreign, interior ministers will go, newspaper says

Segodnya, Kiev, in Russian 14 Nov 06; p 2
BBC Monitoring Service, United Kingdom, Tue, Nov 14, 2006

Text of unsigned report by Ukrainian newspaper Segodnya, which is linked to
the Party of Regions headed by Prime Minister Viktor Yanukovych, published
on 14 November under the headline “Tarasyuk and Lutsenko out?”:

The fate of Interior Minister Yuriy Lutsenko and Foreign Minister Borys
Tarasyuk is known for sure, sources in the anti-crisis [government]
coalition have said. They will be sacked.

“This issue is 80 per cent solved. He [Lutsenko] will be dismissed pretty
soon, and nobody will even wait for the results of work of the parliamentary
commission on the Interior Ministry (it starts to work today – Segodnya),”
the sources said.

The main contender for the post is an MP representing the Party of Regions,
Mykola Dzhyha, who is a former deputy interior minister.

As to Tarasyuk’s dismissal, we shall recall that two candidacies are
considered to replace him: the deputy head of the presidential secretariat,
Oleksandr Chalyy, and former Foreign Minister Kostyantyn Hryshchenko.

There should be no legal problems with Lutsenko’s dismissal (he is appointed
and dismissed on request from the prime minister), but things are a bit
complicated with the head of the Foreign Ministry, whose candidacy it is up
to the president to submit.

Ihor Koliushko, an adviser to the president [Viktor Yushchenko], said
yesterday that he is going to ask the Constitutional Court who has the right
to dismiss this minister. Viktor Yushchenko yesterday said that the attempts
to dismiss Tarasyuk are tantamount to encroachment on Ukraine’s
Euro-Atlantic course.                              -30-
———————————————————————————————–
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========================================================
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21. UKRAINIAN VLADIMIR KLITSCHKO STOPS CALVIN BROCK
       TO RETAIN THE INTERNATIONAL BOXING FEDERATION
                           HEAVYWEIGHT WORLD TITLE

By Larry Fine, Reuters, New York, NY, Sunday, Nov 12, 2006

NEW YORK – Vladimir Klitschko of Ukraine retained the International
Boxing Federation heavyweight world title on Saturday when he stopped
previously unbeaten challenger Calvin Brock in the seventh round at
Madison Square Garden.

Brock crumpled to the canvas after taking a devastating right-hand
punch to the jaw. The American rose to his feet after the count but
was so wobbly that referee Wayne Kelly waved an end to the scheduled
12-round bout at 2:10 of the seventh.

“It was a left hook, straight right combination,” Klitschko told
reporters. “I should have landed it that way earlier in the fight. But
it took that much time to get my rhythm and distance. He’s a good
defensive fighter.”

Klitschko, 30, improved to 47-3 with 42 of his wins coming within the
distance.

The 31-year-old Brock, a member of the 2000 U.S. Olympic boxing team,
suffered his first defeat after winning his opening 29 professional bouts.

“I saw the punch coming but I couldn’t react fast enough,” Brock said.
“He’s strong.”

Earlier, Muhammad Ali was lavished with cheers of “Ali, Ali, Ali,”
when he arrived to take a front row seat for his daughter Laila Ali’s
defense of her super middleweight title against fellow-American
Shelley Burton.

The 28-year-old WBC women’s champion unleashed a powerful left-
right combination that busted Burton’s nose in the fourth round. With
blood pouring from the challenger’s face, the referee stopped the bout
and Ali improved her record to 23-0.

Klitschko was making the first defense of the IBF and International
Boxing Organization (IBO) crowns he won by stopping American
Chris Byrd in the seventh round last April in Mannheim, Germany.

The 6-foot-6 Klitschko, who had a four-inch height and reach
advantage, relied on his stinging jab in the early rounds while Brock
countered with left and right hooks to the body.
                                 DEFENSIVE-MINDED
Klitschko won five of the first six rounds on all the judges’ scorecards,
but the champion was not dominating the defensive-mindedBrock.

The bout began to turn after an accidental clash of heads in the sixth
round opened a cut over Klitschko’s left eye, sending blood trickling
down the side of his face. “I got mad,” said the champion.

Klitschko, who required stitches after the bout, fought with more
urgency from that point and unleashed his firepower in the seventh.

Looking to land his powerful right, Klitschko began throwing punches
in combination. He set up the knockdown with a left hook, hard right
combination, following up with a sharp jab and a short, devastating
right to the jaw that dropped Brock in a heap and ended the bout.

Klitschko, who also held the World Boxing organization heavyweight
title from 2000 to 2003, weighed in at 241 pounds. Brock tipped the
scales at 224.

The champion said he was eager to consolidate the heavyweight
division, which has four title holders including WBC champion Oleg
Maskaev, WBA title holder Nikolai Valuev, and American Shannon
Briggs, the WBO champion.

“I will fight anybody with a title,” Klitschko said.            -30-
————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
22. 100TH ANNIVERSARY OF LEONID BREZHNEV’S BIRTH

              MARKED IN DNIPRODZERZHYNSK, UKRAINE

Ukrinform, Kyiv, Ukraine, Monday, November 13, 2006

KYIV – Dniprodzerzhynsk is gearing up to marking the 100th anniversary of
birth of Secretary General of the Central Committee of the Communist Party
of the Soviet Union Leonid Brezhnev and name Dniprodzerzhynsk Central Park
of Culture and Resort after Leonid Brezhnev as Leonid Brezhnev was born in
Dniprodzerzhynsk.

Within the program of celebrations a scientific conference on Soviet history
and presentation of a catalogue of presents to Leonid Brezhnev will take
place.

Former Secretary General of the Central Committee of the Communist Party

of the Soviet Union Leonid Brezhnev was born in Dniprodzerzhynsk on
December 19, 1906.

He graduated from the Dniprodzerzhynsk Metallurgic Institute and was
employed by the Dniprovsk Metallurgic Works. On 1976 the Bust of Leonid
Brezhnev was inaugurated in Dniprodzerzhynsk.

 Leonid Brezhnev has posed as Secretary General of the Central Committee of
the Communist Party of the Soviet Union since 1966 to 1982.  The Brezhnev
epoch was named the “Stagnation Period”. Under Leonid Brezhnev’s rule the
USSR passed a resolution on intervention into the Czech Republic and
Afghanistan.                                  -30-
————————————————————————————————

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
23. “THEY WERE RAPED..THEY TIED THEM AND PUT COTTON IN
     THEIR MOUTHS.  THEN THEY LIT THE COTTON AND BURNED
     THEM TO DEATH”  Darfur Victim, Name Withheld To Protect Source

Save Darfur Coalition, Full Page Advertisement
The Washington Post, Washington, D.C., Thu, Nov 9, 2006, Pg A-9

   GENOCIDE IS HAPPENING IN DARFUR. YOU CAN HELP END IT.

In 2003, Sudanese President Omar al-Bashir moved to crush opposition
by unleashing vicious armed militias to slaughter entire villages of his
own citizens. 

After three years, 400,000 innocent men, women, and children have
been killed.  2.5 million driven from their homes. 

Untold thousands raped, tortured and terrorized.  Concerned citizens
from around the globe are uniting to stop the genocide.  Join us.

              1 800 320 0095 – LEARN MORE – TAKE ACTION

SAVE DARFUR: www.SafeDarfur.org

————————————————————————————————-
FOOTNOTE:  Top officials in Ukraine continue to ignor the genocide
taking place in Darfur.  They do not speak out against the genocide, they
do not ask the United Nations to do more…just total silence from Ukraine.
Top officials talk about the genocide in Ukraine in 1932-1933 and how it
must not ever happen again, but then choose to do nothing about the
genocide today in Darfur. 
 
The Ukrainian American Coordinating Council (UACC), Ihor Gawdiak,
President, Washington, D.C., New York, New York has become the first
Ukrainian organization to join the Save Darfur Coalition.  Our thanks to
Ihor Gawdiak for his willingness to do more than just talk about genocide.
Hopefully many more Ukrainian organizations around the world will also
join the Save Darfur Coalition.       AUR Editor Morgan Williams
————————————————————————————————-
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
24. UKRAINIAN FAMINE “NOT GENOCIDE”, SAYS RUSSIAN MINISTRY

Ekho Moskvy radio, Moscow, in Russian 1800 gmt 13 Nov 06
BBC Monitoring Service, United Kingdom, Monday, Nov 13, 2006

MOSCOW – The mass starvation in the early 1930’s – the so-called Ukrainian
famine – was not ethnically-based genocide, according to a statement issued
by the Russian Foreign Ministry.

The document says that what occurred did, indeed, to a large extent stem
from the policies of the then leadership of the Soviet Union, but it is
quite obvious that this policy was not pursued along ethnic lines.

The statement was made in connection with a discussion in the Ukrainian
press of the argument that the famine in the 1930s was directed exclusively
against the Ukrainian people.                              -30-
————————————————————————————————
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Kyiv Project Director, Kyiv, Ukraine. Web: http://www.USUkraine.org
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Financial Officer, Chicago, IL; http://www.wjgrain.com/en/links/index.html
14. EUGENIA SAKEVYCH DALLAS, Author, “One Woman, Five
Lives, Five Countries,” ‘Her life’s journey begins with the 1932-1933
genocidal famine in Ukraine.’ Hollywood, CA, www.eugeniadallas.com.
15. ALEX AND HELEN WOSKOB, College Station, Pennsylvania
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A program of the U.S-Ukraine Foundation, Washington, D.C.
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AUR#789 Nov 14 Chicago Trade Exhibition & Conference; Woskob’s Donate To Penn State; Russian Subversion in Crimea; Viktor Baloha

========================================================
 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       

 
  UKRAINE’S NATIONAL EXHIBITION & CONFERENCE IN THE USA
                          Ukraine’s Changing Place in the Global Economy 
                            December 14th to 16th, 2006, Chicago Illinois
                                                                        
ACTION UKRAINE REPORT – AUR – NUMBER 789
Mr. E. Morgan Williams, Publisher and Editor  
WASHINGTON, D.C., TUESDAY, NOVEMBER 14, 2006
                
               –——-  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
                      Ukraine’s Changing Place in the Global Economy 
                        December 14th to 16th, 2006, Chicago Illinois
Action Ukraine Report (AUR) #789, Article 1
Washington, D.C., Tuesday, November 14, 2006
2WOSKOB FAMILY DONATES ONE MILLION DOLLARS TO THE
     UKRAINIAN STUDIES PROGRAM AT PENN STATE UNIVERSITY
Department of Germanic and Slavic Languages and Literatures
Penn State University, University Park, Pennsylvania
Action Ukraine Report (AUR) #789, Article 2
Washington, D.C., Tuesday, November 14, 2006

3   UKRAINIAN SCHOLARS PROGRAM LAUNCHED IN COLLEGE
                 OF AGRICULTURAL SCIENCES AT PENN STATE

College of Agricultural Sciences, Penn State College
Action Ukraine Report (AUR) #789, Article 3
Washington, D.C., Tuesday, November 14, 2006

4. US PRESIDENT GEORGE BUSH WILL VISIT UKRAINE NEXT YEAR,
                 UKRAINIAN PRESIDENTIAL SECRETARIAT SAYS
Interfax Ukraine Business Express, Kyiv, Ukraine, Fri, Nov 10, 2006

5.                          UKRAINE: OLIGARCHY REFORMED
PRESENTATION: By Anders Aslund, Senior Fellow
Peterson Institute for International Economics
Kennan Institute, Woodrow Wilson International Center

Washington, D.C., Monday, November 13, 2006

6.   POLISH HOTEL CHAIN OPERATOR ORBIS PLANS TO EXPAND
     INTO UKRAINE STARTING WITH THREE NEW HOTELS IN LVIV
Business Digest, Sofia, Bulgaria, Friday, November 10, 2006

7AMERICAN ELECTRONIC COMPONENTS COMPANY JABIL PLANS
          TO OPEN LARGE PLANT IN UKRAINE IN SPRING OF 2007
     Wants to invest more in Ukraine if government would improve conditions
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

8.    UKRAINE: CABINET OF MINISTERS THINKS GRAIN EXPORT

       QUOTAS COMPLY WITH WTO MARKET TRADE PRINCIPLES 
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

9KRAFT FOODS UKRAINE STARTS PRODUCTION OF CHOCOLATE
    COATED HAZELNUTS, PEANUTS, CORN FLAKES & MALT BALLS
Ukrainian News Agency, Kyiv, Ukraine, Thu, November 9, 2006

10. SWITZERLAND TOURISM LOOKS FOR EXPANSION IN UKRAINE 
Business Digest, Sofia, Bulgaria, Tue, November 7, 2006

11.       RUSSIA’S GAZPROM TARGETING UKRAINIAN ENERGY

                  INFRASTRUCTURE FOR HOSTILE TAKEOVERS
ANALYSIS & COMMENTARY: By Vladimir Socor
Eurasia Daily Monitor, Volume 3, Issue 210
The Jamestown Foundation, Wash, D.C., Mon, Nov 13, 2006

12. UKRAINIAN DEFENSE INDUSTRY CAN DEVELOP SUCCESSFULLY

                              WITHIN NATO, EXPERTS BELIEVE
Interfax Ukraine Economic, Kyiv, Ukraine, Tuesday, November 7, 2006

13.        UKRAINE BELONGS IN NATO, THE CHOICE IS UKRAINE’S
OPENING REMARKS: By William Miller
Former United States Ambassador to Ukraine
Ukraine’s Quest for Mature Nation Statehood Roundtable VII:
UKRAINE AND NATO MEMBERSHIP
Ronald Reagan International Trade Center
Washington DC, October 17-18, 2006

14ECONOMICS, NOT POLITICS, CENTRAL EUROPE’S BIG PROBLEM
COMMENTARY: By Anders Aslund
Financial Times, London, UK, Wed, Nov 8, 2006

15.                          RUSSIAN SUBVERSION IN CRIMEA
Jane’s Intelligence Digest, United Kingdom, Friday, 3 November 2006

16.   “HENADIY MOSKAL: THERE ARE NO AUTHORITIES IN CRIMEA”
         Crime strong, government weak in Crimea – Ukrainian president’s envoy
INTERVIEW:
With Henadiy Moskal,
President Viktor Yushchenko’s Representative in Crimea
BY: Valentyna Samar, Zerkalo Nedeli, Kiev, in Russian 4 Nov 06; p 3
BBC Monitoring Service, United Kingdom, Thursday, Nov 09, 2006

17.      TATARS INHABIT THE MARGINS IN CONTESTED CRIMEA
LETTER FROM CRIMEA: By Michael Foley
Irish Times, Dublin, Ireland, Wednesday, Nov 01, 2006

18. PROFILE: UKRAINIAN PRESIDENTIAL CHIEF-OF-STAFF BALOHA
BBC Monitoring Service, United Kingdom, Sunday, Nov 12, 2006

19.                “BALOHA TOOK OVER, BALOHA TOOK OVER”
   Ukrainian presidential office chief replaced by brother as regional party boss
ANALYSIS AND COMMENTARY:
By Vitaliy Pyrovych
Delovaya Stolitsa newspaper, Kiev, in Russian 23 Oct 06
BBC Monitoring Service, United Kingdom, Tuesday, Oct 24, 2006

20.                      “TARASYUK AND LUTSENKO OUT?”
             Ukrainian foreign, interior ministers will go, newspaper says
Segodnya, Kiev, in Russian 14 Nov 06; p 2
BBC Monitoring Service, United Kingdom, Tue, Nov 14, 2006

 
         TO RETAIN THE INTERNATIONAL BOXING FEDERATION
                             HEAVYWEIGHT WORLD TITLE
By Larry Fine, Reuters, New York, NY, Sunday, Nov 12, 2006
 
                    MARKED IN DNIPRODZERZHYNSK, UKRAINE
Ukrinform, Kyiv, Ukraine, Monday, November 13, 2006
 
23 “THEY WERE RAPED..THEY TIED THEM AND PUT COTTON IN 
       THEIR MOUTHS.  THEN THEY LIT THE COTTON AND BURNED
       THEM TO DEATH”  Darfur Victim, Name Withheld To Protect Source
Save Darfur Coalition, Full Page Advertisement
The Washington Post, Washington, D.C., Thu, Nov 9, 2006, Pg A-9
 
24UKRAINIAN FAMINE “NOT GENOCIDE”, SAYS RUSSIAN MINISTRY
Ekho Moskvy radio, Moscow, in Russian 1800 gmt 13 Nov 06
BBC Monitoring Service, United Kingdom, Monday, Nov 13, 2006
========================================================
1
UKRAINE’S NATIONAL EXHIBITION & CONFERENCE IN THE USA
                       Ukraine’s Changing Place in the Global Economy 
                         December 14th to 16th, 2006, Chicago Illinois
 
Action Ukraine Report (AUR) #789, Article 1
Washington, D.C., Tuesday, November 14, 2006

WASHINGTON – The government of Ukraine will hold their first National
Exhibition and Conference in the USA in Chicago, Illinois, at the Sheraton
Chicago Hotel from Thursday, the 14th to Saturday the 16th of December
2006.

The exhibition will host over 50 leading Ukrainian companies from the
aerospace, mining, metallurgy, machine building, chemicals, food processing,
light industries and consumer goods as well as the science and information
technology sectors.

It will feature everything from the world’s most efficient satellite
launcher to the world’s smallest nano-metric engine and will provide a
unique opportunity for US companies to capitalize on the rapidly

expanding economy and low cost production centre right on the eastern
edge of Europe.

With foreign direct investment already outstripping last year by 350%,

and with an economy growing at 6 to 8% a year Ukraine has become an
investment and production focus where skilled and highly educated labor
coupled with a close proximity to major European markets, a massive
pool of high technology and a domestic market of over 48 million are
making US companies reconsider previously held perceptions.
“UKRAINE’S CHANGING PLACE IN THE GLOBAL ECONOMY”. 
A highlight of the event will be a conference “Ukraine’s Changing Place in
the Global Economy”. The conference will discuss current issues in
Ukraine’s economic development and will ask searching questions including:

     [1] Can Ukraine link East and West?
     [2] Do foreign investors underestimate Ukraine?
     [3] What are the opportunities for US companies?
     [4] Perception verses reality of the Ukrainian economy?

The conference plenary session will spotlight the strengths and weaknesses
of modern Ukrainian economy and the prospects for bilateral trade and
successful foreign investment.

Top economists from Ukraine and world renowned institutions will present
their visions and forecast of the country’s economic development.

The interests of particular industries will be discussed at break out
sessions devoted to Ukraine’s vast agricultural potential, harnessing unique
information technologies, the strengthening financial sector and of most
interest Ukraine’s massive and as yet untapped resources in scientific and
technical innovation.

It should be noted that Ukraine used to produce over 40% of the technology
of the former Soviet Union including the majority of the space and defense
programs.

The goal of the event is to introduce the U.S. business community to the
present-day economic potential of Ukraine in order to establish mutually
beneficial platforms for trade, commerce and investment.

As part of this conference, participants will be presented with a schedule
of the best investment projects in Ukraine today, as well as an investment
climate overview from leading international consulting companies and those
US companies that have already invested successfully including senior
representatives of Cargill and Kraft and senior representatives of the US
and EU funded Science and Technology Centre in Ukraine.

Who should attend?

     [1] Business executives interested in above average profit margins.
     [2] Scientific and research institutes, production and experimental
          development companies, machinery and equipment engineers
          and technology developers.
     [3] Financial and investment companies, banks and financial
          institutions.
     [4] Chambers of Commerce, leading consulting and information
          companies

For further information and to register for the Exhibition and Conference
please refer to www.ukrdzi.com/usa.

For additional information please contact: Elena Ivanova,

Project coordinator, helen@dzi.mfert.gov.ua

Media enquiries to: Chicago: Sharon Omizek, Partners Ltd
Telephone: (773) 919 3875 / Fax: (630) 834 5068. partnersltd@core.com

Kyiv: Martin Nunn MCIPR, Whites International Public Relations
Telephone / Fax: (+38044) 494 4200; martin.nunn@wipr.com.ua.
————————————————————————————————-

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
2.   WOSKOB FAMILY DONATES ONE MILLION DOLLARS TO THE
     UKRAINIAN STUDIES PROGRAM AT PENN STATE UNIVERSITY

Department of Germanic and Slavic Languages and Literatures
Penn State University, University Park, Pennsylvania
Action Ukraine Report (AUR) #789, Article 2
Washington, D.C., Tuesday, November 14, 2006

WASHINGTON, D.C. – Alex and Helen Woskob (Voskobijnyk), business-
people and owners of the AW&Sons apartment rental company in State
College, Pennsylvania, have donated one million dollars to the College
of Liberal Arts in support of Ukrainian studies at The Pennsylvania State
University.

Two of the Woskobs’ children, George and Larysa, are graduates of Penn
State, and the recent donation continues the Woskob family’s generous
support for the Ukrainian as well as other artistic and cultural programs at
the University.

The Woskobs have previously donated significant funds to establish the Penn
State Center for Ukrainian Agriculture and have funded other local cultural
projects such as the Woskob Family Art Gallery at the Penn State Downtown
Theatre.

The Woskobs’ son George with his wife Nina, owners of the GN Associates
apartment rental and management firm in State College, have also been
extremely active in their financial support of cultural activities at Penn
State.  George Woskob also serves on the advisory board of the Penn State
Center for Ukrainian Agriculture.

The latest gift will significantly expand the Endowment for Ukrainian
Studies at Penn State and Mr. and Mrs. Woskob hope that others in the
Ukrainian community will contribute in the future to increase the scope of
the endowment’s activities.

The interest generated by the endowment will primarily support cultural and
scholarly activities at Penn State, including the teaching of Ukrainian
language and culture; visiting faculty, researchers and scholars;
publications and symposia on Ukrainian topics; speakers and performers;
student and faculty exchanges; study abroad programs in Ukraine; and other
activities that will acquaint the English-speaking world with the best that
Ukrainian culture has to offer.

Spearheading the Ukrainian program at Penn State is Professor Michael
Naydan, who has been teaching at the University since 1988.

Dean Susan Welch of the College of Liberal Arts at Penn State recently
announced that Professor Naydan has just been appointed to the rank of
distinguished professor with the title of Woskob Family Professor in
Ukrainian Studies for his “sustained record of scholarly achievement at the
highest level.”

Professor Naydan is the author-translator of 13 books and nearly 100 other
publications in scholarly and literary journals. His most recent books
include annotated translations of Yuri Andrukhovych’s novel Perverzion
(Northwestern University Press, 2004) and Viktor Neborak’s The Flying
Head and Other Poems (Sribne Slovo Publishers, 2005).

The former won the American Association of Ukrainian Studies translation of
the year award (2005) and the latter the poetry book of the year award in
Ukraine (2006).

In 1989, Professor Naydan established Penn State’s first Ukrainian culture
course, which has been taught uninterruptedly twice each academic year
either by Professor Naydan, by visiting scholars such as Oksana Zabuzhko,
Mykola Riabchuk, Maria Zubrytska, and Olha Luchuk.

Graduate students from Ukraine have also helped teach the course including
Oleksandra Shchur, Oksana Tatsyak, and Roman Ivashkiv, all three of whom
have continued their graduate studies in Ph.D. programs at the University of
Toronto and at the University of Illinois.

The current course is taught by Olha Tytarenko from Lviv. The culture course
began with an enrollment of 15 students when it was first taught and has
climbed to as many as 60 students. Most recently, it has been offered to
ever increasing numbers of students via the Internet during the spring
semester.

The University has also offered a three-semester sequence of Ukrainian
language on several occasions-a sequence that was generously funded by the
Woskob family during the previous academic year. With the increase in the
endowment, plans are to offer Ukrainian language courses on a yearly basis.

 Professor Naydan foresees the focus of the endowment to be cultural and
contemporary issues that will not duplicate the already good efforts in
history and politics in place at other universities.

He sees the Woskob family’s generous donation as a solid beginning and
welcomes other donors to establish graduate student teaching assistantships
for students from Ukraine, publication and conference funds, and
scholarships for students to assist them in attending study abroad programs
in Ukraine.

An additional faculty member at Penn State, Dr. Catherine Wanner, has been
particularly active in Ukrainian studies and will be working closely with
Professor Naydan toward establishing a Center for the Study of Modern
Ukraine at Penn State.

Professor Wanner is an Assistant Professor in the Department of History at
The Pennsylvania State University and received her doctorate in cultural
anthropology from Columbia University.

Her first book, “Burden of Dreams:  History and Identity in Post-Soviet
Ukraine (1998),” was an ethnographic study of how the nationalist paradigm
influenced historiography and cultural politics in Ukraine after the
collapse of the Soviet Union.

She is also the author of Communities of the Converted:  Ukrainians,
Evangelicalism and the Search for Salvation (2007), an analysis of how
Soviet-era evangelical religious practices and communities in Ukraine have
changed since the collapse of socialism and the introduction of global
Christianity.

She is also the co-editor of Reclaiming the Sacred:  Community, Morality and
Religion after Communism (2007), a collection of essays addressing religion
and cultural change in the former Soviet Union.

Her current research project analyzes the transformation of religious life
in the Western Ukrainian city of Chernivtsi after World War II and the
incorporation of this region into Soviet Ukraine.

Her research has been supported by awards from the National Science
Foundation, the National Endowment for the Humanities, the Social Science
Research Council and the National Council for Eastern European and
Eurasian Research.                                -30-
——————————————————————————————–
For further information on the Ukrainian studies program at Penn State
contact: Professor Michael M. Naydan, Dept. of Germanic and Slavic
Languages and Literatures, 303 Burrowes Building, The Pennsylvania
State University, University Park, PA 16802, 814-865-1675, mmn3@psu.edu 

———————————————————————————————–
FOOTNOTE: My congratulations to Alex and Helen Woskob for their
outstanding gift to Penn State University.  I have known and worked with
Alex and Helen for over 12 years.  They have assisted many programs
that support Ukraine including the Holodomor Education and Exhibition
Collection in Kyiv.  AUR Editor Morgan Williams
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
3.   UKRAINIAN SCHOLARS PROGRAM LAUNCHED IN COLLEGE
                 OF AGRICULTURAL SCIENCES AT PENN STATE
 
College of Agricultural Sciences, Penn State College
Action Ukraine Report (AUR) #789, Article 3
Washington, D.C., Tuesday, November 14, 2006

WASHINGTON, D.C. — During a September visit to Ukraine to receive an
honorary degree, the dean of Penn State’s College of Agricultural Sciences,
Robert Steele, announced a new joint program to encourage scholarship and
professional development among faculty at Ukrainian agricultural
universities.

Beginning in 2007, the Woskob International Research in Agriculture, or
WIRA, program — made possible by an endowment from real estate

developers Helen and Alex Woskob of State College — will bring as many as
four Ukrainian scholars to Penn State each year during the fall semester to
study educational methods, take and co-teach courses, establish links with
Penn State researchers and promote study-abroad opportunities for
undergraduate students.

“It’s very fitting that the Ukrainian word ‘wira’ means ‘trust,'” Steele
says. “We hope that the partnerships made possible by the Woskobs’
generosity will enhance agricultural research, education and productivity in
Ukraine and encourage global understanding, collaboration and friendship
among faculty members and students at participating universities.”

The announcement came during ceremonies at Lviv State Agricultural
University near Lviv, Ukraine, where Steele received an honorary doctorate.
The College of Agricultural Sciences has a long-standing relationship with
Lviv in co-sponsoring student and faculty exchange programs.

“The similarities between Penn State and LSAU are striking,” Steele says.
“Penn State celebrated its sesquicentennial in 2005, and Lviv is marking its
150th anniversary this year.

Both institutions are dedicated to generating scientific knowledge that can
be put to practical use and to training new generations of researchers and
educators.” Also coincidentally, “Lviv” translates to “lion” in English,
Steele notes, pointing out Penn State’s “Nittany Lion” mascot.

The honorary doctorate was Steele’s second from a Ukrainian university in a
little more than a year. He was similarly recognized by National Agrarian
University in Kiev in September 2005.

The WIRA scholars program will be open to full-time faculty members at

all Ukrainian agricultural universities.

Natives of Ukraine, the Woskobs are founders and co-owners of State
College-based A.W. and Sons Enterprises. Since 1963, they have developed
numerous real estate projects in Centre County, including housing for
thousands of Penn State students.

The Woskobs have a long history of support for higher education. In 1992,
they established the Ukrainian Agricultural Exchange Program, enabling
collaboration between the College of Agricultural Sciences and the Ukrainian
Agricultural Academy.

They have been involved in the university’s Ukrainian Studies program and
have served on the advisory board of the Centre for Ukrainian Agriculture.

More information on the Woskob International Research in Agriculture

program is available by calling the College of Agricultural Sciences’ Office
of International Programs at 814-863-0249 or by visiting their Web site.
————————————————————————————————–
EDITORS: For more information, contact Deanna Behring, director of
international programs, at 814-863-0249 or dmb37@psu.edu; or Anatoliy
Tmanov, international program coordinator, at 863-2703 or axt193@psu.edu.
—————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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4. US PRESIDENT GEORGE BUSH WILL VISIT UKRAINE NEXT YEAR,
               UKRAINIAN PRESIDENTIAL SECRETARIAT SAYS

Interfax Ukraine Business Express, Kyiv, Ukraine, Fri, Nov 10, 2006

KYIV – U.S. President George Bush will visit Ukraine next year, according to
Ukrainian presidential secretariat deputy head Oleksandr Chaly, who referred
to a discussion held between presidential secretariat head Viktor Baloha and
U.S. Ambassador to Ukraine William Taylor.

“The meeting addressed the schedules of visits at all levels. The clear
common position of Ukraine and the United States [is] that a visit of the
U.S. president to Ukraine is desirable and the U.S. representative confirmed
that the visit is planned,” Chaly said.

He said the exact date of the visit had not been determined. Earlier, the
U.S. ambassador said Bush might visit Ukraine in the winter or spring
of 2007.                                              -30-

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========================================================
5.                    UKRAINE: OLIGARCHY REFORMED

PRESENTATION: By Anders Aslund, Senior Fellow
Peterson Institute for International Economics
Kennan Institute, Woodrow Wilson International Center

Washington, D.C., Monday, November 13, 2006

For the last two years, Ukraine has undergone fast and complex changes
that are confusing to the outsider, but the salient features of Ukraine’s
development are rather clear.

The dominant themes of the Orange Revolution were freedom, democracy,
and justice, while economic and social themes were conspicuously absent.
You get what you ask for. The immediate and striking achievement of the
Orange Revolution was the freedom of speech and of the media.

The media appear securely diverse under multiple owners, and their quality
has greatly improved. All the time, various popular protest actions are
taking place at the local level, showing that Ukrainians are no longer
afraid.

Similarly, Ukrainian democracy has made great advances. Ukraine has moved
far in the direction of a parliamentary system, which provides more
transparency and accountability. It has adopted a proportional election
system, which has generated a structured party system. A sound balance of
power has arisen between parliament and president.

Many Ukrainians are upset that “bandits” have not been sent to prison. But
the rule of law is not built through arbitrary revolutionary acts of
“justice”. The change of the judicial system must start from the top, and
the newly-composed Constitutional Court and Supreme Court are greatly
strengthened.

Representing different constituencies, these courts are balanced, and will
hopefully prove more objective. Corruption in Ukraine declined greatly in
both 2005 and 2006, according to authoritative Transparency International,
as would be expected with the much greater public criticism of corrupt acts.

Ukraine’s parliamentary election on March 26, 2006, was an unmitigated
success for democracy. Five parties passed the three-percent threshold for
representation in the parliament. To form a government, at least two of the
three main parties, Prime Minister Viktor Yanukovich’s Regions, Yulia
Tymoshenko’s Bloc, and President Viktor Yushchenko’s Our Ukraine, had
to join the coalition.

After an undignified intriguing, Yanukovich and Yushchenko finally agreed on
a coalition government in early August. At the time, it looked like a great
historical compromise. The western Our Ukraine obtained what matters the
most to it – foreign policy, law enforcement, and culture, while the Regions
got what matters to the east, namely the economy, though Yushchenko has
appointed the chairman of the central bank.

Unfortunately, this coalition did not quite come to fruition.

Embarrassingly, Our Ukraine disputed for another two months whether the
party should join the coalition or not, and finally decided not to do so,
effectively committing political suicide. Its leaders have quarreled more
with one another than anybody can stand, leaving this political constituency
vacant.

With the demise of Our Ukraine, the oligarchs have returned to the main
stage. Ukraine is dominated by four eastern steel companies, each with about
100,000 employees. Two come from Donetsk and two from Dnepropetrovsk,
and they are all severe rivals.

The biggest is Rinat Akhmetov’s Donetsk-based System Capital Management,
which is the back-bone of the Regions. Yulia Tymoshenko has gathered many
big businessmen in her parliamentary faction, while then big Privat Group
from Dnepropetrovsk is more loosely allied with her.

After Our Ukraine collapsed in October, President Yushchenko undertook a
major realignment. He invited heavyweights from the third biggest industrial
group, the Industrial Union of Donbass from Donetsk, to his administration.
He also drew closer to the fourth biggest industrial group, Viktor Pinchuk’s
Interpipe based in Dnepropetrovsk.

As a result, Ukraine has now obtained multiple balances of power between
government, president, and parliamentary opposition, between the biggest
industrial groups, and the three leading political personalities, and they
can settle their disputes in the Constitutional Court. This political
structure is reminiscent of the United States in the 19th century.

Ukraine is still lagging behind most post-Soviet countries in terms of
legislation, but this new balance of power might generate common law, as
court precedence may develop faster than legislation.

Economic policy is entirely formed by politicians from the Regions, who
favor their big business interests. The new government is growth oriented
and fiscally conservative. Their top issue is WTO accession, and Ukraine is
likely to join by February 2007, long before Russia. It is trimming social
transfers by indexing them to prices rather than incomes.

As a consequence, the government expects to be able to cut the corporate
profit tax from 25 to 20% and VAT from 20 to 18% in 2008. It has abandoned
talk about re-privatization and advocates the reinforcement of existing
property rights as well as private sales of agricultural land in 2008.

The concern, however, is outright corruption. Bad habits before the Orange
Revolution have returned. The most egregious old practice is the corrupt
distribution of refunds of value-added tax to exporters. From the first
month of the new government, the West hardly received any refunds, while
the east obtained twice its share. The rumor is that tax officials demand a
kickback of 30 percent for VAT refunds.

Yanukovych’s government has also prohibited exports of grain, arguing that
exports would double Ukraine’s domestic grain price. In reality, Ukraine is
likely to export no less than 10 million of grain this year, but somebody
will be allowed to monopolize these exports, paying too low a price to the
Ukrainian farmers.

A third area arousing concern about corruption is the gas trade, where Yuriy
Boiko, the founder of the notorious gas trading company RosUkrEnergo has
become Minister of Energy. Prominent voices in the Ukrainian debate are
warning that Boiko is interested in bankrupting the Ukrainian state company
for oil and gas, Naftohaz Ukrainy in order to sell off its parts cheaply.

Planned free economic zones and new public investments are also likely
boondoggles for vested interests, while the worry is that small and
medium-sized enterprises will be repressed by higher tax burden if the big
businessmen pay less tax.

The question is whether Ukraine’s democracy is strong enough to halt this
outrageous restoration of old corrupt schemes. My sense is that the details
of most of these schemes are too well publicized and understood to render
them sustainable, but this is Ukraine’s test.                     -30-
————————————————————————————————

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================      
6. POLISH HOTEL CHAIN OPERATOR ORBIS PLANS TO EXPAND
   INTO UKRAINE STARTING WITH THREE NEW HOTELS IN LVIV

Business Digest, Sofia, Bulgaria, Friday, November 10, 2006

KYIV – The Delo Polish hotel chain operator Orbis SA plans to expand in
Ukraine, starting from the western city of Lviv where it will build two
three-star hotels in 2007, Ukrainian newspaper Delo reported on November 9,
2006.

The two hotels, with a capacity of 80 to 120 rooms, will be built in
downtown Lviv, an Orbis representative told the daily, adding that the
construction of a room would cost at least 30,000 euro ($38,000).

The regional administration of Lviv refused to reveal the location of the
two hotels saying that only a preliminary agreement had been signed with the
investor.

Some 70 pct of the Orbis hotels are in the three-star category, but the
company targets to increase the share of one and two-star hotels to 50 pct
by 2009.

The group has 66 hotels in Poland and one in Lithuania. Many of the Orbis
hotels operate under French Accor’s brands Sofitel, Novotel, Mercure and
Ibis.

Lviv’s hoteliers should not fear competition as the city’s tourism potential
is yet to be developed and the hotel occupancy rate has been as high as 80
pct, said Oleg Podolyan, deputy manager of the Lviv Grand Hotel.

The manager of the Lviv Hotel, Vasiliy Panko, also expects the local hotel
market to remain calm after the entrance of Orbis as tourist arrivals in the
city double every year.

Investments in Lviv’s hotel sector pay off in three to four years, which is
quite high, Panko added. Nearly 100 hotels operate in the region of Lviv, of
which 30 are in the city. Investments in the region’s hotel industry topped
$50 mln (39.2 mln euro) in 2005.

Lviv, which is some 70 km from the Polish border, is a major cultural and
tourist centre. Its historic city centre is on the UNESCO World Heritage
List. (Alternative name: Lvov) (LINK: http://www.delo.ua)

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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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7. AMERICAN ELECTRONIC COMPONENTS COMPANY JABIL PLANS
           TO OPEN LARGE PLANT IN UKRAINE IN SPRING OF 2007
     Wants to invest more in Ukraine if government would improve conditions

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

KYIV – The American electronic components manufacturing company Jabil

plans to open its own plant in Ukraine in the spring of 2007, construction of
which began in September. Philippe Costemale, general director of Jabil
Circuit Ukraine Ltd., announced this to reporters and said Jabil has worked
in Ukraine since 2004.

He noticed, that it would be the first line of the 26,000-square-meter
plant; the company invests USD 50 million into its construction.

Particularly, for construction of the plant building in Rozivka village,
Uzhhorod region, USD 18 million would be spent and USD 2 million more –

for infrastructure, including laying of communications and repairing of roads.

Another USD 20 millions are investments into equipment. According to
Costemale, Jabil has already invested USD 11 million.

Now the company leases premises in the Mynai village, Uzhhorod region, from
the Yadzaki plant, which produces car parts.

After opening the new plant the company plans to completely move to Ukraine
assembling of mobile phones from its Hungarian plant Tiszaujvaros for one of
the world’s largest producers.
WOULD INVEST 50M USD MORE IF CONDITIONS IMPROVED
According to the Jabil Vice President for operations in Europe, Trevor Key,
if the government improves conditions for the investor, then it would invest
USD 50 more million into the second line by 2010 and create 5,000 more jobs.

Key added, that worsening of work conditions for investors in Ukraine and
simultaneous improvement of these conditions in other countries,
particularly Hungary, prompts large companies to make their choice not in
favor of Ukraine.

As Ukrainian News already reported, Jabil has asked Ukrainian authorities to
introduce preferences for foreign investors from January 1.

In particular, the company asks:
     [1] to simplify procedure of working with bills of credit for customs
          payment,
     [2] reduce tax rate for the enterprise’s profit and also to
     [3] cancel duty for customs clearing by export and import of the goods
          for the companies that export 100% of their products.

The company was founded in 1966 in Detroit, USA, and has 45 plants in 20
countries of the world at which it produces electronic components for such
companies as Hewlett Packard, Philips, Alcatel, Nokia, LG, Sharp, Ericsson,
Whirlpool, Thompson, Cisco, Airbus etc.

In Ukraine Jabil produces components for Hewlett Packard data recording
devices and also assembles mobile phones for one of the largest producers.

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========================================================
8.    UKRAINE: CABINET OF MINISTERS THINKS GRAIN EXPORT
      QUOTAS COMPLY WITH WTO MARKET TRADE PRINCIPLES 

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 10, 2006

KYIV – The Cabinet of Ministers thinks that their introduction of  grain
export quotas complies with the market trade principles of the World Trade
Organization.

Prime Minister Viktor Yanukovych said this at the grand meeting of the
Cabinet of Ministers and the parliament coalition devoted to the results of
the Yanukovych Cabinet’s 100-day work.

“We also followed only market principles. The government would further
predict and eliminate all the possible negative results connected with the
changing of the global environment”, said Yanukovych.

He regards strengthening the country’s food safety [security – AUR] as one
of his Cabinet’s first 100 days’ achievements.

Yanukovych stressed, that the Cabinet of Ministers was compelled to
introduce grain export quotas although it was taken mixed as now the Cabinet
intends, first of all, to care of the citizens’ safety and not of commercial
benefit.

Agricultural Policy Minister Yurii Melnyk, commenting on the US, German and
Netherlands Ambassadors statement about possible negative impact of the
grain quotas on the negotiations of the Ukraine’s entering the WTO, called
this pronouncement a subjective opinion.

“Why (grain export quotas) are not market methods? It is a subjective
opinion and we do not agree with it”, said Melnyk.

He said, that he had met the US, German and Netherlands Ambassadors
and explained them the government’s position.

Melnyk noticed, that the Cabinet, introducing the grain export quotas,
follows the WTO members’ modern legislation, which foresees in case of
critical shortage the country can take a number of measures, including
introduction of export quotas.

He underlined, that now the Agrarian Fund and the State Reserve are
purchasing grain to fill their reserves.

Melnyk also emphasized, that the Cabinet already defined that grain export
in this marketing year would be less then 9.5 million tons. “We strictly
fixed the amount (of grain), which can be exported in the marketing year –
9.5 million tons. That’s all”, said the minister.

As to him, 5.88 million tons of grain is already exported; it is by 1.2
million tons more than compared to the similar period of the previous year.

As Ukrainian News earlier reported, US ambassador in Ukraine, William
Taylor, German ambassador Reinhard Schaefers and Netherlands ambassador

Ron Keller warned the Cabinet of Ministers of possible negative impact of grain
export quotas on the negotiations on Ukraine’s entering the World Trade
Organization.

Germany, USA and the Netherlands call on the Cabinet of Ministers to cancel
the quotas for export of grain.

According to their statement, Ukrainian government’s actions, directed at
limitation of export of wheat, barley and corn, are groundlessly preventing
normal operation of market; limitation of export seriously damages Ukraine’s
economy, its investment climate and reputation as a safe partner.

On October 11, the Cabinet of Ministers introduced quotas for grain export
until the end of 2006 and refused licensing it.                   -30-
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]

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9. KRAFT FOODS UKRAINE STARTS PRODUCTION OF CHOCOLATE
    COATED HAZELNUTS, PEANUTS, CORN FLAKES & MALT BALLS

Ukrainian News Agency, Kyiv, Ukraine, Thu, November 9, 2006

KYIV – Kraft Foods Ukraine has started the production of Milka Lila Stars
chocolate coated dragee. Ukrainian News has learned this from the company’s
press service.

According to the report, the company produces three kinds of Milka Lila
Stars dragee: Hazelnuts covered with chocolate, Peanuts and Corn Flakes
covered with chocolate and Krispello dragee – malt balls covered with
chocolate and rice crumbs and another layer of chocolate.

‘If consumers like the three new tastes, we may extend the range,’ senior
brand manager assistant of Milka and Ukraina Chocolate Factory trademarks
Ksenia Chernova said. The company said that shipments of the new products
began on November 9.

The retail price of Hazelnuts and Peanuts and Corn Flakes dragee will make
round UAH 3.85 per pack, while Krispello dragee will cost UAH 2.7 per pack.

As Ukrainian News earlier reported, according to the TOP-100 rating compiled
by InvestHazeta, Kraft Foods Ukraine ended 2005 with a net profit of UAH
104.2 million. In 2005, the company increased net revenues by 32.4% or UAH
272.07 million, compared to 2004, to UAH 1,113.08 million.

Kraft Foods Ukraine owns the Ukraina chocolate factory in Trostianets (Sumy
region), while the Vyshhorod affiliate of Kraft Foods Ukraine in Stari
Petrivtsi owns a factory producing chips and snacks under the Lux, Estrella,
and Cherezos trademarks and a factory packaging coffee.

Kraft Foods Ukraine sells three brands of coffee on the Ukrainian market,
namely Carte Noir, Maxwell House, and Jacobs. Kraft Foods Ukraine is a
division of Kraft Foods, the world’s second largest food producer.

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FOOTNOTE:  Kraft Foods Ukraine is a member of the Ukraine-U.S.
Business Council in Washington, D.C.
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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10. SWITZERLAND TOURISM LOOKS FOR EXPANSION IN UKRAINE 

Business Digest, Sofia, Bulgaria, Tue, November 7, 2006

KYIV – Swiss hospitality entrepreneurs are seeking expansion opportunities
in Ukraine, including setting up hotel chains in the capital Kyiv, Federico
Sommaruga, an executive with Swiss tourism body Switzerland Tourism,

said during a visit to Ukraine in early November 2006.

Sommaruga and Ukraine’s State Tourism Service chairman Anatoliy Pakhlia
discussed opportunities for attracting Swiss investments to the Ukrainina
tourist sector.

Agreements are expected to be signed in May 2007, during an investment

forum in Kyiv. Switzerland may offer Ukraine’s hotel operators and staff
internship programmes and training, Sommaruga said.

The Swiss organisation, whose main activity is to promote tourism in
Switzerland, operates 35 representative offices worldwide with a 50 mln euro
($63.6 mln) annual budget, mostly for advertising and promotional
activities.

A total 5,300 Swiss nationals visited Ukraine in the first half of 2006, up
21.3 pct from the previous year. Swiss arrivals to Ukraine stood at 10,800
in 2005, of which business trips and tourist arrivals accounted for more
than 70 pct.

For January to September 2006, Ukraine’s foreign tourist arrivals topped
14.9 million, marking an 8.0 pct rise from the corresponding period in 2005.
Currently, the number of hotels in Ukraine rounds 1,232, while recreation
and health centres make up 3,245. (www.rynok.biz)

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11. GAZPROM TARGETING UKRAINIAN INFRASTRUCTURE
                                 FOR HOSTILE TAKEOVERS

ANALYSIS & COMMENTARY:
By Vladimir Socor
Eurasia Daily Monitor, Volume 3, Issue 210
The Jamestown Foundation, Wash, D.C., Mon, Nov 13, 2006

Gazprom is moving rapidly to take over Ukraine’s gas transport system
through its monopolist offshoots in Ukraine: RosUkrEnergo and

UkrGazEnergo. The immediate target is Ukraine’s internal gas distribution
network, although the transit system is being targeted as well.

This month, on the threshold of winter, RosUkrEnergo’s front company,
UkrGazEnergo, has refused to sign supply contracts with 16 Ukrainian
companies, many of which distribute gas in Ukraine’s oblasts. The apparent
goal is to take them over by creating Russian-controlled joint ventures with
them.

This could not have come as a surprise. Already in September, RosUkrEnergo
had announced plans to buy stakes in the gas distribution systems of seven
of Ukraine’s oblasts (out of 26) and place them under UkrGazEnergo’s
management, as a first stage in its intention to bring Ukraine’s
distribution system under Russian control.

Conveniently for Gazprom, the Aval Bank — a Ukrainian subsidiary of Austria’s
Raiffeisen Bank, which represented RosUkrEnergo from the outset  — was
entrusted with appraising those companies’ assets (Action Ukraine Report,
September 14; see EDM, September 15).

This is the first planned stage in a systemic takeover, and the number of
targeted Ukrainian companies is growing. On November 10, Ukrainian Fuel and
Energy Minister Yuriy Boyko confirmed that RosUkrEnergo intends to take over
16 companies. Boyko describes this method as normal and “civilized,” citing
Gazprom’s practices in certain European countries.

“We take the same path,” Boyko averred, ignoring the EU’s anti-monopoly
policy and the opposition of many European governments to that type of
arrangement with Gazprom (“2000” [Kyiv] cited by Interfax, November 10).

Apparently, gas-dependent Ukrainian factories might increase the number of
targets for hostile takeovers by Russian interests and their local
auxiliaries. According to Deputy Prime Minister for Fuel and Energy Andriy
Klyuyev, $130 per 1,000 cubic meters of gas (the price to take effect in
2007) is a high price that Ukraine’s economy is not yet prepared to afford.

With Ukraine’s export-oriented chemical industry particularly affected,
Klyuyev suggests resorting to a “merger of the chemical enterprises with the
suppliers of gas” as a means of capping the price of Russian-delivered gas.

Moreover, Klyuyev insists that UkrGazEnergo’s stoppage of deliveries to the
16 companies is a “purely commercial issue” beyond the government’s remit
(Interfax-Ukraine, November 7).

On that same day in Moscow, Gazprom was identically characterizing as “pure
commerce” its attempt to take over Georgia’s trunk pipeline under the threat
of stopping gas deliveries (see EDM, November 9).

According to National Security and Defense Council Secretary Vitaliy Hayduk,
those 16 Ukrainian companies risk either being forced to a halt or being
forced to change owners.

The NSDC plans to discuss the situation at an urgent session (One Plus One
TV [Kyiv], November 12). Hayduk was a critic of the January 2006 gas
agreements that paved the way to this situation.

Gazprom also seems to contemplate absorbing Ukraine’s state oil and gas
company, Naftohaz Ukrainy, through RosUkrEnergo. Gazprom board member

and RosUkrEnergo co-managing director Konstantin Chuychenko proposes
that Naftohaz Ukrainy become a stockholder in RosUkrEnergo.

Gazprom holds a 50% stake in RosUkrEnergo and claims unverifiably that two
Ukrainian partners of Gazprom hold the remainder. Merging Naftohaz into a
network of Gazprom-controlled structures looks like a first step toward its
absorption by Gazprom, whose ultimate target is Ukraine’s Naftohaz-operated
gas transit system.

Airing this proposal in the leading newspaper of Switzerland (where
RosUkrEnergo is nominally based), Chuychenko also explains the three-stage
monopolistic arrangements whereby Russia supplies gas to Ukraine:
Turkmenistan sells the gas exclusively to Gazprom; Gazprom sells that gas to
[its creation] RosUkrEnergo as the exclusive supplier to Ukraine; and
RosUkrEnergo sells that gas to [its creation] UkrGazEnergo as the exclusive
distributor within Ukraine.

In the first stage, Gazprom buys the Turkmen gas at $100 per 1,000 cubic
meters; RosUkrEnergo operates the transit through Gazprom’s pipelines, at a
cost of $25 per 1,000 cubic meters for the entire distance to the Ukrainian
border; and there, RosUkrEnergo sells the gas to UkrGazEnergo.

With the price of $130 in 2007, RosUkrEnergo reckons to make $5 in profits
for each thousand cubic meters of gas delivered to Ukraine (Neue Zuercher
Zeitung cited by Interfax, November 10).

While Chuychenko’s information on the profit margin must not be taken at
face value, his description of the mechanism is realistic. In 2007, this
mechanism will deliver at least 55 billion cubic meters of gas to Ukraine — 
a deceptive way to provide for “energy security,” designed to pave the way
for massive transfers of assets to the supplier.

As Hayduk observes, it is “nonsense” to speak about “market relations
between commercial entities” when RosUkrEnergo is a monopolist representing
the Russian state. As long as this is the case, the NSDC and Presidential
Secretariat take the position that Russia-Ukraine gas relations should
properly be handled at the inter-state level (One Plus One TV [Kyiv],
November 12).

Meanwhile, parliament and public opinion are still in the dark about the
details of the October 24 supply agreement signed by Boyko in Moscow. This
would seem to be an issue made to order for the Presidency and the Yulia
Tymoshenko Bloc to close ranks in the national interest.
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12. UKRAINIAN DEFENSE INDUSTRY CAN DEVELOP SUCCESSFULLY
                           WITHIN NATO, EXPERTS BELIEVE
 
Interfax Ukraine Economic, Kyiv, Ukraine, Tuesday, November 7, 2006

KYIV – The Ukrainian defense industry could develop successfully if

Ukraine joins NATO, experts believe.

The coordinator of international programs of the Democratic Initiatives
Foundation, and an expert on foreign policy from the institute of the
Diplomatic Academy of Ukraine’s Foreign Ministry Oleksandr Paliy gave

his assessment at a press conference at Interfax-Ukraine on Tuesday.

According to Paliy, Ukraine’s defense industry is capable of developing the
most advanced ammunition and create closed cycles of production for such
ammunition, which he said would be competitive on the world market.

Ukraine’s defense industry is capable of finding its place in the
distribution of work among NATO countries, and would be able to succeed
under new conditions brought by accession to the European Union, the expert
concluded.

At the same time, Director of the Center for Army Studies Valentyn Badrak
believes the future of Ukraine’s defense complex depends on the country’s
leadership.

Military expenses should be 2%-2.5% of Ukraine’s GDP, the expert said.
Poland, for example, annually spends $800 million on upgrading its defense
sector, whereas Ukraine’s expenditures do not exceed $100 million, he added.
The expert assessed that if Ukraine raises the financing of the defense
industry to 2%-2.5% of GDP a year, it would be able to take part in joint
programs of NATO member-states.

Additionally, to successfully develop its defense industry, Ukraine needs to
bring its legislation into line with NATO standards, Badrak said.     -30-
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13. UKRAINE BELONGS IN NATO, THE CHOICE IS UKRAINE’S

OPENING REMARKS: By William Miller
Former United States Ambassador to Ukraine
Ukraine’s Quest for Mature Nation Statehood Roundtable VII:
UKRAINE AND NATO MEMBERSHIP
Ronald Reagan International Trade Center
Washington DC, October 17-18, 2006

It’s a pleasure to be here with friends; some friends, I haven’t seen for 25
years, but many of you, I saw just a week ago [ed.–at the US-UA Policy
Dialogue] and I simply want to welcome you back.  For those of you here for
the first time, welcome.

Our forum subject is crucial for Ukraine, namely, the issue of its future
position in NATO. But I want to go at the matter in a different way and
those who know me will know that I usually do that.

Ukraine belongs in NATO; there’s never been any doubt about that, from a
strategic point of view.  It’s the big player, the most significant part of
the former Soviet Union that should be a part of Europe.

It is also very clear, particularly since the Orange Revolution, that
Ukraine is a democracy, in fact, a vibrant democracy.  As we have seen
recently, the process of building democratic institutions can be turbulent,
full of unexpected reversals and twists and turns. Nonetheless, the people
of Ukraine on the Maidan have emphatically embraced democracy as their
system of governance.

Over the past two years, the people have been struggling with their leaders,
with the choice of leaders, and how those leaders should respond to their
wishes.  Their wishes, of course, were made very clear on the Maidan and the
program that Ukraine’s leaders ought to follow was made very clear on the
Maidan.

The problem has been for the institutions of governance, particularly the
newly forming political parties, to translate the will of the people into
meaningful political action.

 As all of us know, and Ukrainians who are here know better than anyone
else, that process has been very difficult, and has led to disappointment,
disillusionment and argument.

But, certainly in my view, and I know in the view of my Ukrainian friends:
“Don’t worry, it will turn out all right”. Whenever I express concern, they
say: “Don’t worry, It will be alright.” and I believe it.

Ukraine is a nation of music…..this is perhaps not a NATO subject, but it
should be. Anyone who has been to Ukraine or lived in Ukraine or been with
Ukrainians, knows that when all else fails, they sing. When they sing, you
should listen, because they tell you what they really think.

On the Maidan, we had remarkable parade of great singers from church choirs
to pop stars.

And, of course, the pop singers were saying what the people had in mind. All
of those who were on the Maidan, as I was, heard Slava Vykarchuk and Okean
Elzy; they were expressing what the people wanted. Maria Burmaka, Taras
Petrenenko of “Ukraina” [fame], Ruslana, Oksana Bilozir and of course, the
people on the podium themselves were singing, with their hand on their
heart, about what the future of Ukraine should and would be. The world
watched this.

Certainly those who were close to Ukraine saw it directly and they knew that
this was Ukraine’s future.  They knew that those songs, those pledges made
on the Maidan, are the political agenda that has to be followed, no matter
what the twists and turns of political organizations may be.

Those pledges have to be honored, because that is in the memory of the
people as a whole and it came from their hearts, as well as their
experience.

So what has a song to do with NATO?  Well it’s not an old song. In some
respects, there are old songs, that is, hurdles for Ukraine to leap over,
before it can enter.  But these are minor things.

Ukraine’s entry into NATO is open to Ukraine, when it is ready to take that
step.  It is a matter for Ukraine to decide.  Ukraine has proven itself to
be a democratic state by a process of the last several years.

It has proved that it can participate in turbulent politics without killing
each other.  It has proved that there can be free and fair elections.  It is
as democratic as any state that has already newly entered into NATO.

The choice is Ukraine’s.  When Ukrainians finally want to enter and make the
political decision, there is no doubt that the West will respond well.

What is it that Ukraine and NATO have in common?  Certainly in the military
aspect of it all, which is only 30% of the real NATO mission, Ukraine has a
crucial role to play.

It has been playing such a role through the Partnership for Peace and
through all of the work it has done since independence in peacekeeping. It
has proved its worth.

The further technical side of becoming an efficient military force is really
a secondary matter.  The most important element of NATO membership

resides in common values, democratic values which Ukraine shares with
Europe through the Orange Revolution.

What happened on the Maidan, the processes of the last two years, are proof
for all to see that Ukraine has met the test of democratic processes.

So the task that remains for all of us here as technicians and as advocates
and as friends is to ease that process as much as we can and to welcome
Ukraine as soon as possible into the association of democratic states that
we now call NATO.

Maybe we can or will find a better name, but the subtext is an “association
of democratic states”, with shared values of “decency, human rights and
concern for the welfare of their people, living in peace”.

So I welcome you all here, and I look forward to the deliberations, which
will take place over the next two days and wish you all success.    -30-
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14. ECONOMICS, NOT POLITICS, CENTRAL EUROPE’S BIG PROBLEM

COMMENTARY: By Anders Aslund
Financial Times, London, UK, Wed, Nov 8, 2006

Central Europe’s political malaise has caught international attention. The
region’s governments are weak. Populism and nationalism are rising. These
political problems are contrasted with good economic performance.

But central Europe’s economic results are impressive only by European Union
standards. From 2000 to 2005, Poland, the Czech Republic, Slovakia and
Hungary grew on average by 4 per cent a year, compared with 8 per cent a
year in the 15 former Soviet republics. Even in this boom year, central
Europe will grow by 5 per cent, while the former Soviet Union comes close
to 9 per cent. Star performers are Armenia, Azerbaijan and Kazakhstan.

Barely half as wealthy as the west European countries, the central European
nations need to grow more than twice as fast to converge with them. The
absence of convergence breeds a sense of permanent backwardness.
Unemployment remains high at 15 per cent in Poland. Budget deficits have
been abundant, ballooning to 10 per cent of gross domestic product in
Hungary. Apart from Slovakia, none of these countries has reformed
significantly in the past half decade.

This malaise has coincided with their EU accession. In a prescient paper of
1996, Jeffrey Sachs and Andrew Warner warned that the central European
countries would not converge economically with western Europe if they did
not cut their high taxes, reduce their excessive social transfers and
deregulate their labour markets. A decade later, their public expenditures
linger at 46 per cent of GDP, the EU average.

Formally, the EU has not forced these countries to maintain high public
expenditures, but its social charter and political pressures point in that
direction. Initially, EU accession contributed to deregulation, but its last
part was  dominated by illiberal chapters, such as the common agricultural
policy.

After having joined the EU, the central European countries behave as Greece
did under prime minister Andreas Papandreou from 1981 to 1996. Greece
maintained a large budget deficit, relying on EU subsidies, and undertook
few reforms. Growth was poor. Pious complaints from Brussels make little
difference as long as they do not influence the flow of subsidies.

Two-thirds of the much higher growth in the former Soviet countries can be
explained by their far lower public expenditures. The only other significant
factor is the high world prices for oil. The ex-Soviet countries have become
part of the high-growth belt from China via India to the Baltics and they
look to the economic models of east Asia, with low taxes, limited social
transfers and free labour markets, rather than the EU.

Until 1998, good things went together  privatisation, liberalisation,
macroeconomic stabilisation, democracy, good governance and economic
growth.

Cynics said that the closer to Brussels a country, the better off it was.
Now, the further a country is from Brussels, the higher its growth is. The
Russian financial crash of 1998 was the dividing line. It forced post-Soviet
countries to make large cuts in public expenditures to balance their
budgets. With the exception of Belarus, Turkmenistan and Uzbekistan, the
post-communist world is dominated by private enterprise, free markets and
low inflation.

Admittedly, the Baltic countries  Estonia, Latvia and Lithuania  are EU
members and they perform well, with growth  rates of around 8 per cent a
year, balanced budgets, low flat taxes and moderate public expenditures.

But the cause of their good fortune does not lie in their EU accession, but
in their fresh memory of horrendous financial crises and a potent Russian
threat. They have resisted accusations of both tax dumping and wage
dumping by west European leaders.

Central Europe’s problem is not political instability. Until recently, it
had relatively stable, but irresponsible governments, which did little while
their economic problems deepened. The recent political turmoil in central
Europe may be welcomed as a wake-up call. The Baltic countries are
maintaining their stellar economic performance by changing government once
a year.

In 1992, the grand old Hungarian economist Janos Kornai noticed that the
central European states had developed a premature west European social
welfare system. Their prime dilemma is economic and a general EU problem.
Like the EU, central Europe needs to overcome its poor economic dynamism
through lower taxes, reduced social transfers and freer labour markets.
Possible cures are increasing tax competition from the east and freer labour
migration within the EU.
———————————————————————————————–
The writer is senior fellow at the Peterson Institute for International
Economics, in Washington, D.C., www.petersoninstitute.org.
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15.                 RUSSIAN SUBVERSION IN CRIMEA

Jane’s Intelligence Digest, United Kingdom, Friday, 3 November 2006

On 11 October, President Viktor Yushchenko ordered the Security Service of
Ukraine (SBU) to upgrade its operational activities in the Crimea.

The SBU was given two months to, ‘look into the efficiency of intelligence,
counterintelligence and operative measures in order to identify, prevent and
halt intelligence, subversive and other illegal activities in the Crimea by
foreign secret services and NGOs’.

The SBU was also ordered to develop a plan of action to, ‘neutralise’
activities in the Crimea, ‘which harm Ukraine’s sovereignty and territorial
integrity, pose security threats and incite ethnic, racial and religious
tension’.

Russia’s subversive tactics in supporting separatism among ethnic Russians
in the Crimea and eastern Ukraine are long standing. Kiev’s ability to
launch counter-measures are hampered by two factors, as clearly noticeable
during the well-organised anti-US and anti-NATO demonstrations in the
Crimea.

[1] There is a lack of political will by Yushchenko and within the
presidential secretariat and the National Security and Defense Council
(NRBO) to tackle the separatist threat.

These two institutions are the president’s two remaining levers of influence
following this year’s constitutional reforms that transferred much of
presidential powers to parliament.

[2] Second, there are divided loyalties between Kiev and Moscow within the
SBU and Interior Ministry (MVS). In 1994-1995 President Leonid Kuchma
successfully used non-violent tactics implemented by the SBU and the NRBO to
marginalise Crimea’s separatist voices.

Following a decade of rampant corruption under Kuchma, including the SBU’s
involvement in arms trafficking and repression of the opposition reminiscent
of the Soviet KGB, the SBU’s competence is now in doubt.

In the Crimea and eastern Ukraine, regions loyal to pro-Russian Prime
Minister Viktor Yanukovych’s Party of Regions, the local SBU branches remain
highly sceptical of Yushchenko. Further, the Crimean parliament, dominated
by the Party of Regions, has often disregarded Yushchenko’s directives.

Under Kuchma a number of officials from Russia were declared persona non
grata for short periods in retaliation for inciting separatism in Ukraine.
Under Yushchenko, Kiev’s official policy has hardened, especially following
the June protests in the Crimea where Russian politicians gave inflammatory
speeches.

After Yushchenko’s inauguration in January 2005 former senior Kuchma-era
officials sought refuge in the Crimea.

In March 2006, the Party of Regions and its three extreme left allies – the
Communist Party, the Progressive Socialist Party and the Union party – swept
elections to the Ukrainian and the Crimean parliaments, gaining over 70 per
cent of the vote in the Crimea. Many of the former Kuchma figures re-entered
the political stage on the back of the election wins of Party of Regions.

These three political constituencies have allied with Russian intelligence
(FSB) and the Black Sea Fleet’s intelligence (GRU) and military officers to
incite anti-US and anti-NATO demonstrations, pickets and rallies in the
Crimea.

These reached a crescendo in June and led to the first ever cancellation of
joint military exercises with the US and with other NATO countries through
its Partnership for Peace (PfP) programme. These exercises had been
regularly held in the Crimea and in military bases in western Ukraine since
1997.

Russia has supplied intelligence on the location and plans for military
exercises and has given personnel to increase attendance at the rallies and
demonstrations. During the June rallies many of the leading organisers were
spouses of serving Russian Black Sea Fleet officers.

Russia is also involved in attempts to incite inter-ethnic strife in the
Crimea by fomenting clashes between Tatars and Russian-speaking Slavs.

The presidential secretariat has told JID of its fears that Russia is
attempting to ‘Abkhasize’ the Crimea by repeating its successful tactics in
Georgia’s two frozen conflicts, Abkhazia and South Ossetia.

The presidential secretariat has told JID that it has reports from loyal SBU
officers who have reported financial support being given to ethnic Russian
nationalist NGOs in the Crimea.

Logistical support is given to these groups by the Black Sea Fleet and by
nationalist youth groups from Russia who are dedicated to the Kremlin, such
as Nashi, a pro-Vladimir Putin NGO that has been involved in racist and
anti-Georgian violence in Russia.
                       RUSSIA’S STRATEGY IS TWO FOLD
[1] First, to foment instability in the Crimea to halt Ukraine’s drive to
join NATO. The anti-NATO and anti-US rallies in June in the Crimea have
reinforced the concerns of those NATO members that deem Kiev’s

membership aspiration in the organisation as impracticable in the near future.

[2] Second, Moscow seem to want to make use of increased political
volatility in the Crimea as a way to pressure Kiev to seek its assistance
which would enhance its leverage over its weaker and anxious neighbour. In
late October, President Putin offered to provide assistance to Ukraine if
Slav-Tatar tension increased in the Crimea.

Such protection would be reminiscent of similar tactics in Georgia’s two
separatist enclaves where Russia first incited inter-ethnic tension and then
offered ‘CIS’ (in reality Russian) ‘peacekeeping troops’ who have frozen the
conflict in Moscow’s favour. As Putin said, ‘Russia cannot be indifferent to
what happens in Ukraine and the Crimea’.

Related to this question, is Russia’s tactics of organising a lobby within
the Crimea and Ukrainian government to support its calls to extend the
twenty year lease for Russia’s Black Sea Fleet in Sevastopol.

The lease was negotiated in 1997 as part of a package of documents that
obtained Russian recognition of Ukraine’s sovereignty and territorial
integrity and is set to expire in 2017.

Ukraine’s constitution bans foreign bases but made a ‘temporary’ exception
with the Black Sea Fleet. The Anti-Crisis coalition, uniting the Party of
Regions, Socialists and Communists, has 240 deputies and is therefore unable
to change these constitutional provisions, which would require 300 votes.

Defense Minister Anatoliy Hrytsenko, a Yushchenko loyalist, has rejected
extending the 20 year lease and turned down offers of security assistance
from Russia. Prime Minister Yanukovych has supported negotiations to extend
the Russian base agreement beyond 2017.                     -30-

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16. “HENADIY MOSKAL: THERE ARE NO AUTHORITIES IN CRIMEA”
        Crime strong, government weak in Crimea – Ukrainian president’s envoy

INTERVIEW: With Henadiy Moskal,
President Viktor Yushchenko’s Representative in Crimea
BY: Valentyna Samar, Zerkalo Nedeli, Kiev, in Russian 4 Nov 06; p 3
BBC Monitoring Service, United Kingdom, Thursday, Nov 09, 2006

Ukraine’s Crimea is not in danger of becoming another Kosovo, but central
authorities must keep their eye on the region, Henadiy Moskal, President
Viktor Yushchenko’s representative in Crimea, has said in an interview. The
authorities in Crimea are weak and have reinforced their position with
criminals, he said.

Decisions by the central authorities to rectify such issues as the
allocation of land were being sabotaged because Crimean leaders are not
interested in solving the problem and Kiev is failing to punish them for
their inaction, according to Moskal.

He noted there appears to be friction between criminals who served time in
jail and their fellow criminals who “got into parliament”.

The following is the text of the interview with Moskal by Valentyna Samar,
entitled “Henadiy Moskal: there are no authorities in Crimea”, published in
the Ukrainian analytical weekly Zerkalo Nedeli on 4 November, subheadings
have been inserted editorially:

Sometimes even this happens: right after the Orange Revolution in the
president’s secretariat, they began to think seriously about eliminating
such an unnecessary constitutional institution as the president’s permanent
representative in Crimea. For a long time the office of the presidential
representative was empty altogether.

But after Henadiy Moskal occupied it, it turned out that the president’s
representative office, though it has few powers, can be a very effective
instrument of control over the situation in the autonomous republic.

And if earlier under [former] President Leonid Kuchma, the presidential
representative was called his eyes and his ears, under President Yushchenko,
you can say a voice appeared as well – it is a rare day that goes by without
Mr Moskal giving an interview or commentary or his statements appearing in
the media. As a rule they are uncompromising, but nevertheless the general
has not said anything superfluous.
                              WEAK POWER IN CRIMEA
Without the obvious support of any political force represented in the
Crimean parliament, Mr Moskal actively works with public organizations.

I suspect that this is not least of all because there are nearly none of the
former head policeman’s “godfathers” in the “third sector”. But there are
many of them within the bodies of power in the autonomous region.

That is what he is asked about most frequently. We tried to get answers to
questions on another level.

[Samar] Mr Moskal, how do think the current competition for power between
the president and the prime minister [Viktor Yanukovych] will affect
relations between the centre and such a peculiar and difficult-to-manage
place as the Autonomous Republic of Crimea?

Practically all power in Crimea today belongs to the Party of Regions [which
Yanukovych heads]. Does the presidential secretariat have a vision on how
the head of state can keep control over Crimea?

[Moskal] First, there will be no Crimean-variety reform of local
self-government in the country. Second, neither the president nor the centre
are threatened by anything as long as Crimea has the kind of power it has
today.

To be honest, there is no power here. There is merely a sham and appearance
of power.

The person who worked out this model was an absolutely short-sighted person.
Who proposed Anatoliy Hrytsenko, whose authority in Crimea is like a
temperature of minus zero, as speaker of the autonomy’s parliament?

That should have been known by the person who was the “watchdog” here.
And when they tried to choose the same kind of candidate for prime minister,
well the centre has nothing to worry about, since this power is absolutely
helpless.

[Samar] Weak power carries another threat. And what is happening now – the
exacerbation of all chronic problems from land to interethnic relations –
will not end in anything good.

[Moskal] Yes, there is an exacerbation of problems which should be resolved
by the local authorities, and not by the centre. First is the land issue. In
order to bring order to this in Crimea, the law needs to be changed, the law
on local self-government…[ellipsis as published]

[Samar] Or maybe execute the law which already exists?

[Moskal] …[ellipsis as published] or adhere to the existing law. But you
see for yourself that problems are not being resolved.

There is a firm trend towards more and more land-grabbing and towards
building houses on it. People in parliament say: why is Moskal sounding an
alarm, those are shacks and not homes.

Well, shacks can be built out of cardboard, but construction here is being
built on foundations, electricity is being put in and water lines extended.

It is absolutely clear that no-one is going to leave this land, that is why
people are putting their money there. And the Crimean authorities make
statements, so endearing to my heart, that the problems are being
resolved…[ellipsis as published]

And time is passing by. What is the current leadership being led by? First –
a lack of desire to do anything. Why burden yourself with such difficult
problems? Let the next people come to power take care of it. And everything
is very simple.

The situation with land-grabbing is like it once was in Moscow: all visitors
ran to get in line at the central shopping centres in order to be certain to
get at least something. And the same is going on here.

Along with the Crimean Tatars who really do need land for homes, people who
don’t need it are taking part in the protests and there are people who have
staked claims in several protest areas at the same time.

The authorities need to put together a list of all those hopefuls from all
the protests, and there are 53 of them today; and they need to sift through
those lists to make sure that one person is not claiming several plots of
land, and they need to check that the rest really do need land and have the
right to it in accordance to the current law.

There will turn out to be not many such people and sessions at local
councils should review their documents and provide them with land.

[Samar] That’s true, but you are forgetting the main reason – the corruption
which is spread from the very bottom to the very top.

And that is exactly why nothing is being done for transparency and why work
to inventory land is not being done and why there has not been one meeting
of the National Security and Defence Council [NSDC] on Crimean issues and
no commission on the matter has come to a logical conclusion, and the
land-grabbing fiasco is continuing.

[Moskal] For some reason in our country, only a few drops of water or
nothing at all falls from a big cloud. No serious criminal case has gone to
court after the work of all these commissions.

Because everyone they dug down to turned out to have protection, and there
is not the openness today that there is in developed democracies.

For example, why is former Italian prime minister Berlusconi being dragged
from court to court today and he is not shouting about it; whereas here,
whoever you touch starts shouting about political persecution and political
repression. And all the land has been divided up either for bribes or for
knowing someone inside.
                       NO REPERCUSSIONS FROM KIEV
[Samar] There are fairly pessimistic predictions on the effectiveness of the
president’s decree on Crimean issues after the last meeting of the NSDC
[National Security and Defence Council].

Mr Yushchenko gave devastating criticism to both the Crimean and central
authorities for not carrying out the former NSDC decision, but the cabinet,
from the lips of [Deputy Prime Minister Dmytro] Tabachnyk, did not agree,
since they think the government is doing a lot for Crimea…[ellipsis as
published]

[Moskal] Meetings of the NSDC must not only state the fact that the previous
decision is not being carried out. If it is not being carried out, then that
means the guilty should be punished. And today the president’s
representatives daily monitor the execution of the latest decision.

Both the Crimean parliament and the Council of Ministers and local bodies of
self-government tossed the NSDC decision in the trash. They did not even
begin nor intend to begin fulfilling it. If they got away with it once, then
what is there to fear? The NSDC will meet a third time and the same thing
will happen.

[Samar] Is that sabotage?
[Moskal] It is.

[Samar] On what level?
[Moskal] On the local level.

[Samar] So you want to say that the Crimean party leaders, that is the
leadership of the cabinet don’t have anything to do with it, but it is local
Party of Regions members who have initiated the sabotage of the NSDC
decision on their own?

[Moskal] I would not say they are doing so consciously. There is such a
thing in criminal law known as criminal arrogance, that is – what if I get
away with it? And that is why the NSDC needs to be tougher today. A
month has gone by and what has been done? Nothing.

We don’t need to hear more, we need conclusions. You simply can’t continue
turning Crimea into a seat of instability! I mean there were no such mass
acts of land-grabbing even in the first years of Crimean Tatars returning to
their homeland!

[Samar] So, we can say that today the NSDC is completely inactive as a lever
of power in the hands of the president, at least as far as Crimean land
issues are concerned?

[Moskal] I want to tell you one thing; on the local level the NSDC decision
will not be implemented. Because the current authorities in Crimea do not
gain from it.

If all the land is inventoried and all the boundaries are drawn, foremost
around national parks, then everything will be decided at the level of local
councils and not in the parliament and government of Crimea.

And then the authorities of the autonomy will not have the tool of
distributing land. And then what will they do, simply talk about NATO and
the Russian language meeting after meeting?

If you do everything envisioned by the law, that means making corruption
impossible and the only thing left to do is enforce strict control over the
legality of decisions by local bodies of power.

[Samar] If I am not mistaken, it was at your suggestion that the president’s
decree envisions opening a branch of the Ukrainian State Property Fund [SPF]
in Crimea – in contrast to the existing property fund of the autonomy, which
has double subordination. This serious step by the centre is taken by those
in power in Crimea as revoking the authority of the autonomy.

[Moskal] And why is it revoking the authority of the autonomy? If
agricultural firms engaged in vineyards and wine-making and which are
government property are continually giving up land along the coastline for
construction purposes and doing so upon decisions of the Crimean parliament,
then there is a need to open a branch of the SPF.

And every morsel of land given away should be given away based on its
permission. And I guarantee you that [SPF head Valentyna] Semenyuk will not
give such permission today.

There is a branch of the SPF in every region and there is a department of
communal property. So let these people take care of communal property, and
everything else will go to the SPF.

A document is now being prepared in the secretariat to repeal the decree by
[former] President Leonid Kuchma dated 1995 on privatization departments in
Crimea which was absolutely illegal.

Second, we need to introduce changes to the constitution of Crimea and close
the hands-on, in-the-pocket Crimean Accounting Office.

It exists to juggle accounts and principles appear only when someone has to
be kicked out of office. And if you want to have effective control over the
use and accrual of budget funds, a serious branch of the Ukrainian
Accounting Office has to be opened.
                          KEEPING ITS EYE EVERYWHERE
[Samar] It seems that even without all of that, the president’s
representative office today is keeping its eye on every single decision by
the Crimean parliament and government. The number of your suits filed in
court against the decisions of local and Crimean authorities beats all
records.

Your relationship with speaker Hrytsenko is already on the verge of mutual
idiosyncrasy. Accusations of the criminal past of deputies is a separate
subject. Is this the position of the secretariat and the president or that
of the “executioner at large”?

[Moskal] Well, I am not a man who is going to wait for instructions from the
secretariat. When I came here and saw who had got into the Crimean
parliament, I asked: guys, whose stupidity is this?

In Crimea only newborn children do not know that these people are criminals.
There are 225 unsolved murders. There are fathers and children in the shadow
of these victims and they are waiting for the government to see justice
prevail.

In my first days here I rejected bodyguards and freely walk around the
streets. And people, including former police department employees, stop me
and ask: “How can this be? This guy was killed, that one kidnapped, this
other one tortured and shot and no-one has been punished”.

I had to react to that as both the president’s representative and as a
person. And then I said in the secretariat: we must not allow Crimea to turn
into Latin America of the 1970s.

I asked the interior minister [Yuriy Lutsenko] to set up a special
investigative group and it was set up on instructions by the minister and
the prosecutor-general.

[Samar] We know that this group, under the leadership of department chief
Maj-Gen Vasyl Paskal, works absolutely autonomously, with a base that is not
even in Crimea, but rather in Odessa.

Why is that so? Is there pressure or a threat of danger to members of the
group or a lack of trust in Crimean law enforcement officers?

[Moskal] The group works that way so that none of that takes place. And the
group’s activity will be successful if no-one hinders it.

[Samar] You don’t even have to disband this group, it is enough to switch
the investigators as the prosecutors did with regard to the investigative
group in the [Oleksandr] Melnyk case…[ellipsis as published]

[Moskal] There are other ways, too: for example, burdening the group as much
as possible with cases from other regions…[ellipsis as published]

[Samar] Crimean parliamentary deputy Oleksandr Melnyk, who is suspected of
committing and organizing murders, and who, despite a signed statement to
not flee, left our territory unhindered, said in an interview that pressure
was being put on people detained in Odessa and illegal methods of getting
evidence were being used against him.

[Moskal] Mr Melnyk thinks that when his former pals testify against him,
then something is amiss. As far as I know, those who have already served
sentences are giving the most testimony to investigators, probably because
back then their friends promised they would help them…[ellipsis as
published]
                            CRIMINALS WITH A GRUDGE
Samar] You mean to say that these people are offended that they were not
“taken care of” in the zone [prison]?
[Moskal] I think so, most probably. Because it turned out that some went to
jail and others ended up in parliament. And those people also have a sense
of social justice…[ellipsis as published]

[Samar] As far as I know from words by the leaders of the group, not a day
goes by that someone doesn’t come to them with a confession. And it
happens that there are three, five or 10 appearances with a confession.

[Samar] Where is Voronok, leader of the [alleged criminal group] Seylem
today?
[Moskal] I don’t know where he is, or what intentions he has or what
influence he has. But I know the group intends to return to its documented
criminal activity.

[Samar] Law enforcement officials call deputy Melnyk one of the leaders of
Seylem, but journalists call him the “eyes” of Donetsk, or even of
[Ukrainian MP and tycoon] Rinat Akhmetov [who is from Donetsk].

But in an interview with Ukrayinska Pravda, Mr Akhmetov denies anything to
do with Melnyk. He says he has no interests here at all, since there is
nothing to look after except perhaps a vacation home.

[Moskal] I believe Mr Akhmetov. And really, what can link this guy and the
richest man in the country? By the way, I did not call Melnyk the “eyes of
Donetsk”. I called a different deputy that (Anton Pryhodskyy – author). I
think this is all Melnyk’s bragging.

But when there is no-one to lead, someone has to take power. Melnyk always
accompanies Hrytsenko on trips and to meetings, both to Moscow and to
Kiev.

There is weak power which has reinforced itself with criminals. I don’t see
anything else here.

[Samar] The last leak of information from the investigative group is that
Oleksandr Melnyk is suspected of having something to do with the 2001
murder of the Krotenko husband and wife – the owners of the popular
Kozatskyy Shlyakh restaurant.

Besides that, we hear that another Crimean deputy was directly involved in
the crime. If this is the influential deputy I am thinking of, then won’t
the speaker lose the support you were talking about in case of his arrest or
sudden departure? And this could lead to some other changes in the
leadership of the autonomy?

[Moskal] It is impossible to establish another configuration in parliament,
besides the one that is there today. But, based on statements by the leader
of the Russian Bloc on quitting the coalition, changes can’t be ruled out.
But probably what will happen is that none of the criminals will put
pressure on the deputies.

[Samar] As far as parliament is concerned, yes, but I meant the
prerequisites for changing the prime minister who depends entirely on the
speaker today, through whom, people say, Mr Melnyk and Mr Lukashov
exert their influence…[ellipsis as published]

[Moskal] As far as I know, the prerequisites are already set up, since the
council of ministers is not satisfied with [Crimean prime minister] Mr
Plakida and they have more complaints against him than the president does.

[Samar] So, one against the other and?..[ellipsis as published]
[Moskal] I have no doubt there will be a change of the head of the
government. Hrytsenko’s candidacy did not justify itself and the speaker
will not be able to synchronize his own management of both parliament and
the government.
                        TATARS “A RESTRAINING FACTOR”
[Samar] Whose interests could come into play in appointing the new leader of
the Crimean parliament? Those of Akhmetov or [Dmytro] Firtash [a tycoon
primarily known for his business in the gas industry]?

[Moskal] These people have no business interests in Crimea! There are only
three stable, working structures, the “whales” of the budget – the state
enterprises Chornomornaftohaz, Titan and the Crimea Soda Plant…[ellipsis
as published]

[Samar] But the last two are controlled by Firtash, by the way!
[Moskal] What difference does it make whose enterprises they are? The
important thing is that investment flows and the enterprises’ work is
stable.

[Samar] Of course, it is only with us that politics and business cannot be
separated. And so who influences politics in Crimea today and who is
interested in constant instability here?

[Moskal] Completely different factors influence events in Crimea. Not inside
of Ukraine, but from without. Since the president and the government and the
“Donetsk group” and Crimeans are interested in stability here. Crimea will
never be [the Moldovan breakaway region] Dniester and it will not be
Abkhazia or Kosovo.

And there is no Crimea-wide leader who can take up the role of [incumbent
president of Dniester region, Igor] Smirnov or even [pro-Moscow Yuriy]
Meshkov [who was president of Crimea in 1994]. And those who have been
offered it, have refused. They have offered everyone, but they all see they
are not up to it.

[Samar] Who is offering that role and to whom?
[Moskal] There were attempts, but it won’t happen. The people they made the
offers to have heads on their shoulders. And besides, there are Crimean
Tatars. No matter what anyone says, that is the main restraining factor here
today in Crimea against any anti-Ukrainian scenarios.

Yes, they have a lot of complaints against the authorities and in most cases
justified ones. But it is exactly they who are the restraining factor, the
ones who do not allow Crimea to become a Dniester or South Ossetia.

[Samar] Okay, so no-one can take up the role of a new Meshkov, but outside
influence is coming via someone. Everyone knows to which organizations and
party structures financing from Moscow comes. There is a NSDC resolution

and a number of instructions to special services…[ellipsis as published]
[Moskal] Hang on a second, we are not in Georgia and no-one here has caught
anyone by the hand.

[Samar] That’s just it…[ellipsis as published]
[Moskal] Let’s remember the words to a song by [Soviet-era bard Vladimir]
Vysotskiy: “Where there are not many real unruly types, there are no
leaders”. Don’t take Crimean marginals seriously and don’t create
advertising for them.

All these pro-Russian fronts and “movements” are vaudeville theatre. But of
27 regions, if anyone wants to set things off, they can’t do it anywhere but
in Crimea. The NSDC decision was made so no-one goes to sleep, so no-one
relaxes but rather they work as they should.                   -30-

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17. TATARS INHABIT THE MARGINS IN CONTESTED CRIMEA

LETTER FROM CRIMEA: By Michael Foley
Irish Times, Dublin, Ireland, Wednesday, Nov 01, 2006

For many it is where they spent some of the best months of their youth, at
Young Pioneer camps or on holidays.

Talk to Ukrainians driving around the peninsula and they will point to where
their camp was and what mountains they climbed. It can only be compared to
Irish people recalling their time in the Gaeltacht.

Crimea is a beautiful place. Ride the cable car up Ai Petri mountain and you
see eagles soaring. Its coastline is full of little inlets and beaches and
the landscape is dotted with vineyards.

As Ukrainians tell their stories someone will propose a toast. Vodka will be
held aloft: “to Ukrainian Crimea”. Then down goes the vodka.

The salute is politically loaded because Crimea is a contested place. In the
Black Sea resort of Alushta, the main rival to the more famous Yalta a few
miles up the coast, the season is coming to an end.

The bars and restaurants are only half-full, but it is still warm and many
people are out walking until late on the long promenade that borders the
beach.

Ukrainians like to live life outside when the climate allows, so groups of
young people sit and talk on the promenade and drink a few beers. Others

pay a few kopiyas to sing a song to the home-made karaoke machines. The
atmosphere is friendly.
                  UNIFORMED RUSSIAN NATIONALISTS
But a little later small groups of young men stand around, eyeing other
similar groups. Some are wearing T-shirts proclaiming “Russia” or “Ukraine”.
A few insults are thrown, but little else happens even if the atmosphere is
tense.

Someone is wearing what looks like an old-fashioned military officer’s
uniform, with large peaked Russian- style cap, tunic and trousers, with a
wide red stripe tucked into boots. Beside him is another solider-like
figure, wearing a beret. Both are armed with long whips. They provide
security, we are told.

But who are they? Cossacks, is the answer. A walk around the town shows

the “Cossacks” are providing security everywhere.
Crimea never had Cossacks.

They were in other parts of Ukraine, and the country is quite proud of its
Cossack connection. One of the best Ukrainian vodkas, Hetman, is named

after the title of a Cossack commander.
      THEIR ENEMIES ARE THE TATARS, & UKRAINE
Here in Crimea though, the Cossacks are Russian-speakers, whose main
function, they claim, is to defend the Russian Orthodox Church.

It is also a moot point as to whether they are all actually Cossacks at all,
but uniformed Russian nationalists. Their main enemy are the Tatars, and
secondly Ukraine.

The Tatars, under Genghis Khan, were once part of an empire that stretched
from Mongolia across central Asia and into eastern Europe. The Crimea Tatars
converted to Islam in the 12th century.

Crimea later became part of the Ottoman Empire and remained so until
Catherine the Great took Crimea, so giving Russia access to the Black Sea.
Catherine encouraged others, especially Russians, to settle in Crimea in
order to change the population balance. By 1863 the Tatar population was
outnumbered by immigrants.

In 1944 Stalin ordered the deportation to central Asia of all the estimated
remaining 200,000 Crimean Tatars for their alleged collaboration with the
German occupiers.

In 1954 the peninsula was handed to Ukraine as a “gift” from Russia to mark
the friendship between the two peoples. In 1991, when Ukraine gained its
independence, it inherited the peninsula and its overwhelmingly Russian
population.

Crimean Tatars started returning in the 1980s. The number increased rapidly
after Ukrainian independence. Official figures show that 244,000 have now
returned. Tatar leaders say another 200,000 want to come back.

Today there is tension. Both Russians and Ukrainians say the Tatars want
returned to them the houses and land that belonged to their families before
the expulsion. The Cossacks also claim that Tatars are linked to Islamic
fundamentalist organisations.

The Tatar legacy is used as part of the tourism industry. Restaurants offer
an “authentic” Tatar experience. Real Tatars, though, are a marginal,
dispossessed group.

There are frequent fights between Tatars and members of the Russian
majority. The Tatars also complain of police harassment.
Meanwhile, the Cossacks provide “security” armed with their bullwhips,
claiming they are making Crimea safe for the Russian majority.

There are not many Irish links with Crimea, but there is one. It is now 150
years since the end of the Crimea War. That was covered for the London Times
by a man named William Howard Russell. Russell is considered the father of
war correspondents and could be considered the first reporter in the modern
sense.

His coverage had a huge impact. One government fell, a “War Department” was
created and Florence Nightingale brought her nurses to the Crimea to tend to
the British wounded. Russell, who is commemorated in St Paul’s Cathedral,
was from Tallaght in Dublin.                            -30-
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18. PROFILE: UKRAINIAN PRESIDENTIAL CHIEF-OF-STAFF BALOHA

BBC Monitoring Service, United Kingdom, Sunday, Nov 12, 2006

Viktor Baloha, a former emergencies minister and regional governor, was
appointed head of President Viktor Yushchenko’s secretariat on 16 September.

Amid deteriorating relations with Prime Minister Viktor Yanukovych,
Yushchenko apparently sees Baloha as a tough manager who will be better
equipped to shore up his waning influence than his predecessor, Oleh
Rybachuk, who was widely seen as ineffectual.

Baloha’s new role has even been compared to that of the notorious “crisis
manager” Viktor Medvedchuk, the head of President Leonid Kuchma’s
administration and a one-time ally of Baloha in the United Social Democratic
Party.

Baloha may also attempt to build bridges with Yanukovych, with whom he says
that he has enjoyed good personal relations since the late-1990s, when they
both served as regional governors.

In an interview shortly after his appointment, he said: “I came here in
order to bury the hatchet of war. I’m hoping to calm down the radicals in
both [Yanukovych’s] Party of Regions and [pro-presidential bloc] Our Ukraine
and finally halt the senseless confrontation.”

Baloha is reported to have substantial business interests in Transcarpathian
Region, but he plays down suggestions that he is super-rich.

According to the Ukrayinska Pravda web site, in 2005, his family reported
income of around 200,000 dollars and shareholdings worth around 300,000
dollars. Baloha’s wife, Oksana, is a shareholder in a number of businesses
in the transport, furniture, food, media and other sectors.
          TRANSCARPATHIAN BUSINESSMAN, GOVERNOR
Born in a Transcarpathian Region village in 1963, Baloha graduated from the
Lviv trade and economics institute. After military service, he returned to
his native region to work in consumer cooperatives.

From 1992-98, he was director of the Mukacheve firms Ryb-promin and Barva.
Baloha’s businesses were involved in the trade, food processing,
non-alcoholic beverages and construction sectors.

In 1998, Baloha was elected mayor of Mukacheve. Around this time, he appears
to have become associated with Medvedchuk and joined his United Social
Democratic Party (USDP).

Medvedchuk was elected to parliament in 1998 from a Transcarpathian
constituency, and he is believed to have arranged Baloha’s appointment as
regional governor in 1999.

As governor, Baloha built up the USDP presence in the region, where at one
time up to 80 per cent of bureaucrats were said to be party members. He also
appears to have facilitated strong support for the reelection of Leonid
Kuchma in the 1999 presidential election.

In 2000, however, Baloha appears to have broken ties with the USDP and
thrown his support behind Volodymyr Lytvyn, the then head of Kuchma’s
administration and a fierce opponent of Medvedchuk.

Facing imminent dismissal, Baloha eventually resigned in June 2001. The
Prosecutor-General’s Office subsequently opened a case against him for
financial abuses during his time as governor.
                                     OPPOSITION POLITICIAN
Baloha’s resignation came shortly after parliament sacked the government of
Viktor Yushchenko. Baloha soon joined forces with the former prime minister
and managed his Our Ukraine bloc’s 2002 parliamentary campaign in
Transcarpathian Region.

Baloha was elected to parliament in a Transcarpathian Region constituency.
He was also elected mayor of Mukacheve.

As an MP, Baloha was unable to hold another elected post and stepped down

as mayor. In the subsequent mayoral election in June 2003, Baloha’s cousin
(some sources indicate brother-in-law) and business partner Vasyl Petyovka
ran as the Our Ukraine candidate.

Although Petyovka was initially declared the winner, the result was
successfully challenged in court and Petyovka was eventually removed from
the post by presidential decree.

In April 2004, Baloha himself ran in the scandalous repeat mayoral election.
The election developed into an international scandal after observers
reported large-scale irregularities.

The candidate backed by the USDP was declared the winner, while Our Ukraine
said that the result had been falsified to deny Baloha victory. The election
was widely seen as a rehearsal for the presidential election that autumn.
                                     PRESIDENT’S MAN
After the Orange Revolution, Baloha returned to Transcarpathian Region as
governor. He also headed the regional branch of the pro-presidential party
Our Ukraine People’s Union.

During his time as governor, Baloha was accused of putting pressure on
businessmen and political persecution of USDP supporters, including the
former governor, Ivan Rizak. Baloha denied these allegations.

After the corruption scandal that led to the dismissal of Yuliya
Tymoshenko’s government in September 2005, Baloha was appointed

emergencies minister.

During his time in office, the ministry dealt with, amongst other things, a
bird flu outbreak, a mid-winter heating breakdown in the Luhansk-region town
of Alchevsk, and explosions of shells at the Novobohdanivka munitions depot.

Baloha appears to be a close friend of the Yushchenko family. In January
2006, he joined Yushchenko and Prime Minister Yuriy Yekhanurov for a
traditional swim in the icy Dnipro river to mark the feast of Epiphany.

Baloha and Yekhanurov are believed to have been behind an unsuccessful
attempt to expel Yushchenko’s “dear friends”, the group of
businessmen-politicians discredited in the corruption scandal, from
leadership positions in the Our Ukraine People’s Union ahead of the March
2006 parliamentary election.

Baloha himself did not run for parliament in election. After the election,
Baloha, together with Yekhanurov, advocated a grand coalition between Our
Ukraine and the Party of Regions.

Baloha remains a powerful figure in Transcarpathian Region, where Serhiy
Ratushnyak, a former business competitor and now mayor of Uzhhorod, is

seen as his only real rival.

Baloha is said to have considerable influence over the regional council,
where Our Ukraine is in a grand coalition with the Party of Regions.

Baloha has repeatedly been accused of cronyism and nepotism in appointments
in his native region. Vasyl Petyovka now serves as Mukacheve mayor.

While the godfather of Baloha’s child, Oleh Havashy, replaced him as
regional governor. Baloha’s younger brother, Ivan, a deputy regional
governor, has replaced him as head of the regional branch of Our Ukrainian
People’s Union.                                      -30-
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19.    “BALOHA TOOK OVER, BALOHA TOOK OVER”
 Ukrainian presidential office chief replaced by brother as regional party boss

ANALYSIS AND COMMENTARY: By Vitaliy Pyrovych
Delovaya Stolitsa newspaper, Kiev, in Russian 23 Oct 06
BBC Monitoring Service, United Kingdom, Tuesday, Oct 24, 2006

Ivan Baloha, the younger brother of presidential office chief Viktor Baloha,
has been elected leader of the Transcarpathian branch of President Viktor
Yushchenko’s Our Ukraine People’s Union party, a business paper has
reported.

Ivan Baloha took over from his brother, who apparently does not believe in
democratic principles, it wrote.

Nothing can now shake the positions of the Baloha family and their allies in
the Transcarpathian region, the paper concluded. Their only strong local
rival is Uzhhorod mayor Serhiy Ratushnyak, it added.

The following is the text of the article by Vitaliy Pyrovych entitled
“Baloha turned over, Baloha took over” published in the Ukrainian newspaper
Delovaya Stolitsa on 23 October; subheadings are as published:

The name of the leader of the Transcarpathian regional branch of
[propresidential] Our Ukraine People’s Union [OUPU] party did not change
after its conference held to hear reports and elect new leadership.

From now on, state secretary [as published; head of the presidential
secretariat] Viktor Bahoha’s younger brother Ivan will be the father and
commander of Transcarpathian Our Ukraine members.

“Kuchmism” [policy attributed to former President Leonid Kuchma] seems
likely to have left an ineffaceable trace on Viktor Baloha, and the former
Social Democrat does not much trust democratic principles.

This is the reason why he entrusts leadership in business, region and party
only to the people close to him and toughly presses for their promotion.
                              FAMILY AND PARTY BRANCH
The head of the presidential secretariat and the leader of the regional OUPU
branch did not consider necessary to be present at his one-man show in the
party, having sent and application requesting his fellow party members to
relieve him of party work in Transcarpathian Region.

The head of the executive board of the regional branch, Volodymyr Shkryba,
reported to fellow party members instead of him. Mr Shkryba’s report in
which the state secretary’s style could be recognized was accepted with
enthusiasm, and then delegates began praising the only contender for the
regional party boss.

The head of the executive board passionately announced that Ivan Baloha was
the one who headed Our Ukraine’s headquarters in Mukacheve during the 2006
[parliamentary] election where Our Ukraine had gained the largest number of
votes.

The regional council head and Viktor Baloha’s former speech writer, Mykhaylo
Kychkovskyy, said that “Mr Ivan Baloha is the most authoritative and
enterprising regional councillor who put forward a number of interesting
ideas as the head of the regional Our Ukraine faction [in regional
council].”

MP Ihor Kril summed up praises and glorification: “Ivan Baloha is a young
and prospective politician who is not only aware of regional problems, but
is also able to resolve them.” No need to say, it was just impossible not to
elect this prominent figure unanimously.

However, grateful Ivan Baloha complained to councillors: from now on, he has
got “another heavy burden”. Indeed, Baloha Jr has a great deal of work: he
is a formal manager of family business, and he has also got the post of
deputy head of the regional state administration as a burden since summer.

Nevertheless, Viktor Baloha has decided that his brother is able to be
successfully engaged in “party drudgery”.

Generally speaking, the chief of the presidential secretariat likes to
settle things “in family way”: he nominated his child’s godfather Oleh
Havashy as governor, his own brother as the latter’s first deputy and his
cousin Vasyl Petyovka as Mukacheve mayor.

The same way, the brother from Kiev does not want to lose control over the
regional Our Ukraine organization, as it enables him to retain influence in
the regional council.

Judging from the majority formed in the regional council, Viktor Baloha
still exerts influence upon local organizations of Our Ukraine, the Party of
Regions, two Hungarian ethnic minority parties and some [opposition] Yuliya
Tymoshenko Bloc [YTB] members.

The fact that governor Oleh Havashy has been the regional Reforms and Order
Party leader for a long time is significant. Some interlocutors of Delovaya
Stolitsa consider Ivan Baloha’s penetration into Our Ukraine’s ruling bodies
in the capital to be his next “fraternal” task, as this will enable Viktor
Baloha to have eyes and ears in his native party.

Viktor Baloha who has never actively tackled Our Ukraine’s affairs until
recently (if his last year’s unrealized initiative to remove “dear friends”
[President Viktor Yushchenko’s closest entourage accused of corruption] from
party readership after the “corruption scandal” [in September 2005] is not
taken into account) now intends to exert more influence on the party policy
on a national scale.
                       PATRIMONY WITH ROTTENNESS
If Viktor Baloha just intends to strengthen his positions in Our Ukraine,
no-one and nothing can shake his position in his native region any more.

Even the fact that the Party of Regions has come to power and Viktor Baloha
himself has left the Cabinet of Ministers after being the major instrument
of Viktor Yushchenko’s influence in the executive authorities is unlikely to
result in changes on the regional Olympus of power.

Viktor Baloha’s nominee, governor Oleh Havashy is not present on the
government’s black lists, but he has become the first governor honoured to
be received personally by the prime minister [Viktor Yanukovych] last week.

It should be noted that Mr Havashy left Viktor Yanukovych’s office “alive
and unhurt”, though he got a reminder “of regional leaders’ personal
responsibility for preparation for winter season”.

It can be concluded that the discussion was primarily related to the
beginning of the heating season in Transcarpathian Region, as it had been
announced.

Other topics of discussion between the Transcarpathian governor and the
prime minister, in addition to the coming cold, remained a secret, but we
can presume that Viktor Yanukovych was unlikely to blackmail Oleh Havashy
with the governor’s post, trying to obtain proofs of his devotion.

Mr Havashy cannot be loyal to Mr Yanukovych at the expense of his relations
with Viktor Baloha. But the prime minister is not interested in escalation
of relations with the head of the presidential secretariat either, while
“incursions” on his Transcarpathian protege can make the latter the prime
minister’s personal enemy.

Mr Yanukovych understands that, if he wants to peacefully cohabit with the
president, pragmatic Viktor Baloha is the one who can become a bridge for
achieving this goal.

Formation of a Transcarpathian grand coalition with the Party of Regions’
participation can serve as a proof of this kind of Viktor Baloha’s
pragmatism, and this approach cannot but attract Mr Yanukovych.

By the way, the majority of regional councillors, including representatives
of the Party of Regions, approved Oleh Havashy’s report in September, and
Viktor Yanukovych is unlikely to bring any kind of accusations against the
regional state administration chief in public, as he enjoys his
Transcarpathian fellow party members’ support.

On the other hand, Viktor Baloha has his own regional interest in Viktor
Yanukovych. Viktor Baloha’s only rival in Transcarpathian Region is the
Uzhhorod mayor, Serhiy Ratushnyak, who cannot be “neutralized” through the
city council, the same way as through the regional state administration or
the [presidential] secretariat.

There are now levers of influencing a legitimately elected city mayor in the
president’s arsenal, the same way as in the government’s one.

However, if the Cabinet of Ministers “helps” to organize heating disruptions
in Uzhhorod (for example, the beginning of the heating season in Vinnytsya
was postponed due to short gas supplies by the Naftohaz Ukrayiny national
joint-stock company’s [dealing with oil and gas supplies] daughter
enterprises, and if the Party of Regions’ central office persuades its
fellow party members in the city council (without having six Party of
Regions members, the mayor will control only one-half of votes in the city
council – precisely 25 councillors) to leave the majority, Serhiy
Ratushnyak’s positions will become more vulnerable for Viktor Baloha’s
attacks.

However, another option is possible: wishing to press the head of the
presidential secretariat, Viktor Yanukovych will choose the latter’s
influential antagonist, Serhiy Ratushnyak, as his main support in this
region.

Then the Transcarpathian Region will witness another “local war”, and its
producers will be located in the presidential secretariat in Kiev.
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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20.               “TARASYUK AND LUTSENKO OUT?”
             Ukrainian foreign, interior ministers will go, newspaper says

Segodnya, Kiev, in Russian 14 Nov 06; p 2
BBC Monitoring Service, United Kingdom, Tue, Nov 14, 2006

Text of unsigned report by Ukrainian newspaper Segodnya, which is linked to
the Party of Regions headed by Prime Minister Viktor Yanukovych, published
on 14 November under the headline “Tarasyuk and Lutsenko out?”:

The fate of Interior Minister Yuriy Lutsenko and Foreign Minister Borys
Tarasyuk is known for sure, sources in the anti-crisis [government]
coalition have said. They will be sacked.

“This issue is 80 per cent solved. He [Lutsenko] will be dismissed pretty
soon, and nobody will even wait for the results of work of the parliamentary
commission on the Interior Ministry (it starts to work today – Segodnya),”
the sources said.

The main contender for the post is an MP representing the Party of Regions,
Mykola Dzhyha, who is a former deputy interior minister.

As to Tarasyuk’s dismissal, we shall recall that two candidacies are
considered to replace him: the deputy head of the presidential secretariat,
Oleksandr Chalyy, and former Foreign Minister Kostyantyn Hryshchenko.

There should be no legal problems with Lutsenko’s dismissal (he is appointed
and dismissed on request from the prime minister), but things are a bit
complicated with the head of the Foreign Ministry, whose candidacy it is up
to the president to submit.

Ihor Koliushko, an adviser to the president [Viktor Yushchenko], said
yesterday that he is going to ask the Constitutional Court who has the right
to dismiss this minister. Viktor Yushchenko yesterday said that the attempts
to dismiss Tarasyuk are tantamount to encroachment on Ukraine’s
Euro-Atlantic course.                              -30-
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21. UKRAINIAN VLADIMIR KLITSCHKO STOPS CALVIN BROCK
       TO RETAIN THE INTERNATIONAL BOXING FEDERATION
                           HEAVYWEIGHT WORLD TITLE

By Larry Fine, Reuters, New York, NY, Sunday, Nov 12, 2006

NEW YORK – Vladimir Klitschko of Ukraine retained the International
Boxing Federation heavyweight world title on Saturday when he stopped
previously unbeaten challenger Calvin Brock in the seventh round at
Madison Square Garden.

Brock crumpled to the canvas after taking a devastating right-hand
punch to the jaw. The American rose to his feet after the count but
was so wobbly that referee Wayne Kelly waved an end to the scheduled
12-round bout at 2:10 of the seventh.

“It was a left hook, straight right combination,” Klitschko told
reporters. “I should have landed it that way earlier in the fight. But
it took that much time to get my rhythm and distance. He’s a good
defensive fighter.”

Klitschko, 30, improved to 47-3 with 42 of his wins coming within the
distance.

The 31-year-old Brock, a member of the 2000 U.S. Olympic boxing team,
suffered his first defeat after winning his opening 29 professional bouts.

“I saw the punch coming but I couldn’t react fast enough,” Brock said.
“He’s strong.”

Earlier, Muhammad Ali was lavished with cheers of “Ali, Ali, Ali,”
when he arrived to take a front row seat for his daughter Laila Ali’s
defense of her super middleweight title against fellow-American
Shelley Burton.

The 28-year-old WBC women’s champion unleashed a powerful left-
right combination that busted Burton’s nose in the fourth round. With
blood pouring from the challenger’s face, the referee stopped the bout
and Ali improved her record to 23-0.

Klitschko was making the first defense of the IBF and International
Boxing Organization (IBO) crowns he won by stopping American
Chris Byrd in the seventh round last April in Mannheim, Germany.

The 6-foot-6 Klitschko, who had a four-inch height and reach
advantage, relied on his stinging jab in the early rounds while Brock
countered with left and right hooks to the body.
                                 DEFENSIVE-MINDED
Klitschko won five of the first six rounds on all the judges’ scorecards,
but the champion was not dominating the defensive-mindedBrock.

The bout began to turn after an accidental clash of heads in the sixth
round opened a cut over Klitschko’s left eye, sending blood trickling
down the side of his face. “I got mad,” said the champion.

Klitschko, who required stitches after the bout, fought with more
urgency from that point and unleashed his firepower in the seventh.

Looking to land his powerful right, Klitschko began throwing punches
in combination. He set up the knockdown with a left hook, hard right
combination, following up with a sharp jab and a short, devastating
right to the jaw that dropped Brock in a heap and ended the bout.

Klitschko, who also held the World Boxing organization heavyweight
title from 2000 to 2003, weighed in at 241 pounds. Brock tipped the
scales at 224.

The champion said he was eager to consolidate the heavyweight
division, which has four title holders including WBC champion Oleg
Maskaev, WBA title holder Nikolai Valuev, and American Shannon
Briggs, the WBO champion.

“I will fight anybody with a title,” Klitschko said.            -30-
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[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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22. 100TH ANNIVERSARY OF LEONID BREZHNEV’S BIRTH

              MARKED IN DNIPRODZERZHYNSK, UKRAINE

Ukrinform, Kyiv, Ukraine, Monday, November 13, 2006

KYIV – Dniprodzerzhynsk is gearing up to marking the 100th anniversary of
birth of Secretary General of the Central Committee of the Communist Party
of the Soviet Union Leonid Brezhnev and name Dniprodzerzhynsk Central Park
of Culture and Resort after Leonid Brezhnev as Leonid Brezhnev was born in
Dniprodzerzhynsk.

Within the program of celebrations a scientific conference on Soviet history
and presentation of a catalogue of presents to Leonid Brezhnev will take
place.

Former Secretary General of the Central Committee of the Communist Party

of the Soviet Union Leonid Brezhnev was born in Dniprodzerzhynsk on
December 19, 1906.

He graduated from the Dniprodzerzhynsk Metallurgic Institute and was
employed by the Dniprovsk Metallurgic Works. On 1976 the Bust of Leonid
Brezhnev was inaugurated in Dniprodzerzhynsk.

 Leonid Brezhnev has posed as Secretary General of the Central Committee of
the Communist Party of the Soviet Union since 1966 to 1982.  The Brezhnev
epoch was named the “Stagnation Period”. Under Leonid Brezhnev’s rule the
USSR passed a resolution on intervention into the Czech Republic and
Afghanistan.                                  -30-
————————————————————————————————

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========================================================
23. “THEY WERE RAPED..THEY TIED THEM AND PUT COTTON IN
     THEIR MOUTHS.  THEN THEY LIT THE COTTON AND BURNED
     THEM TO DEATH”  Darfur Victim, Name Withheld To Protect Source

Save Darfur Coalition, Full Page Advertisement
The Washington Post, Washington, D.C., Thu, Nov 9, 2006, Pg A-9

   GENOCIDE IS HAPPENING IN DARFUR. YOU CAN HELP END IT.

In 2003, Sudanese President Omar al-Bashir moved to crush opposition
by unleashing vicious armed militias to slaughter entire villages of his
own citizens. 

After three years, 400,000 innocent men, women, and children have
been killed.  2.5 million driven from their homes. 

Untold thousands raped, tortured and terrorized.  Concerned citizens
from around the globe are uniting to stop the genocide.  Join us.

              1 800 320 0095 – LEARN MORE – TAKE ACTION

SAVE DARFUR: www.SafeDarfur.org

————————————————————————————————-
FOOTNOTE:  Top officials in Ukraine continue to ignor the genocide
taking place in Darfur.  They do not speak out against the genocide, they
do not ask the United Nations to do more…just total silence from Ukraine.
Top officials talk about the genocide in Ukraine in 1932-1933 and how it
must not ever happen again, but then choose to do nothing about the
genocide today in Darfur. 
 
The Ukrainian American Coordinating Council (UACC), Ihor Gawdiak,
President, Washington, D.C., New York, New York has become the first
Ukrainian organization to join the Save Darfur Coalition.  Our thanks to
Ihor Gawdiak for his willingness to do more than just talk about genocide.
Hopefully many more Ukrainian organizations around the world will also
join the Save Darfur Coalition.       AUR Editor Morgan Williams
————————————————————————————————-
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
24. UKRAINIAN FAMINE “NOT GENOCIDE”, SAYS RUSSIAN MINISTRY

Ekho Moskvy radio, Moscow, in Russian 1800 gmt 13 Nov 06
BBC Monitoring Service, United Kingdom, Monday, Nov 13, 2006

MOSCOW – The mass starvation in the early 1930’s – the so-called Ukrainian
famine – was not ethnically-based genocide, according to a statement issued
by the Russian Foreign Ministry.

The document says that what occurred did, indeed, to a large extent stem
from the policies of the then leadership of the Soviet Union, but it is
quite obvious that this policy was not pursued along ethnic lines.

The statement was made in connection with a discussion in the Ukrainian
press of the argument that the famine in the 1930s was directed exclusively
against the Ukrainian people.                              -30-
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