AUR#856 Aug 9 Lower Barriers To West; Pipeline Game; Green Trading; Shell Oil; Holtec; Vanco Int; Biofuel; Cardinal Resources; Boeing & AeroSvit

 
========================================================
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 856
Mr. E. Morgan Williams, Publisher and Editor, SigmaBleyzer
WASHINGTON, D.C., THURSDAY, AUGUST 9, 2007
INDEX OF ARTICLES 
Clicking on the title of any article takes you directly to the article.               
Return to Index by clicking on Return to Index at the end of each article
1.  UKRAINE SHOULD LOWER BARRIERS TO THE WEST
ANALYSIS & COMMENTARY By Keith Smith
Financial Times, London, UK, Wednesday, Aug 1, 2007

2.  COUNTRY ANALYSIS ENERGY BRIEF – UKRAINE

By U.S. Department of Energy
U.S.-Ukraine Business Council (USUBC)
Washington, D.C., Wednesday, August 8, 2007

3.  ENERGY SECURITY: CENTRAL & EASTERN EUROPE

Report by Hudson Institute Senior Fellow Zeyno Baran                      
U.S.-Ukraine Business Council (USUBC)
Washington, D.C., Wednesday, August 8, 2007

4.  THE PIPELINE GAME
Business Europe: By Kyle Wingfield
The Wall Street Journal, New York, NY, August 9, 2007

5. UKRAINE’S GREEN TRADING OPPORTUNITY
OP-ED, Kyiv Post, Kyiv, Ukraine, Wednesday, Aug 01 2007

6.  U.S. PRESSING FOR CASPIAN GAS TO BE EXPORTED TO EUROPE

Interfax, Baku, Friday, Aug 03, 2007

7SHELL, UKRGAZVYCOBUVANNIA TO START GEOLOGICAL
EXPLORING TWO UKRAINIAN FIELDS
Interfax, Kyiv, Ukraine, Friday, Aug 03, 2007

8.  SHELL JOINS THE U.S.-UKRAINE BUSINESS COUNCIL 

U.S.-Ukraine Business Council (USUBC)
Washington, D.C., Monday, August 6, 2007
 
9. U.S. AMBASSADOR TAYLOR & ENVIRONMENT PROTECTION
MIN DISCUSS PREPARATIONS FOR BUILDING OF NUCLEAR WASTE
STORAGE FACILITY FOR UKRAINIAN NPPS BY U.S. HOLTEC INT

Interest in strengthening Ukrainian-U.S. cooperation in environmental
protection and the rational use of natural resources
Interfax Ukraine, Kyiv, Ukraine, Sunday, July 29, 2007

10.  CONTRIBUTORS ASSEMBLY OF NUCLEAR SAFETY ACCOUNT
APPROVES UKRAINE’S AGREEMENT WITH U.S. COMPANY
HOLTEC ON COMPLETION OF SPENT NUCLEAR FUEL STORAGE-2
Olena Honcharenko, Ukrainian News Agency
Kyiv, Ukraine, Wednesday, July 25, 2007

11. U.S. AMBASSADOR TAYLOR & UKRAINIAN ENVIRONMENTAL
PROTECTION MINISTER DISCUSS VANCO INTERNATIONAL

Yevhen Holovatiuk, Ukrainian News Agency
Kyiv, Ukraine, Tuesday, July 24, 2007

12 UKRAINE’S GAS PRODUCTION TO COVER 50% OF

DEMAND IN FIVE YEARS SAYS ENERGY MINISTER BOIKO
Agreement with Vanco International could be signed soon
Interfax Ukraine Business Express
Kyiv, Ukraine, Wednesday, August 1, 2007

13. MIN KINAKH EXPECTS PSA WITH VANCO INT FOR KERCH
AREA OF BLACK SEA SHELF TO BE SIGNED BY OCTOBER
Yevhen Holovatiuk, Ukrainian News Agency
Kyiv, Ukraine, Sunday, July 22, 2007

14.  INTRODUCING BIOFUEL
How to launch this alternative mechanism?
By Natalia BILOUSOVA, The Day Weekly Digest #20
Kyiv, Ukraine, Tuesday, July 10, 2007

15.  FUNDING BOOST FOR CARDINAL RESOURCES
By Toby Shelley, Financial Times, London, UK, Tuesday, July 3 2007

16.  ALL BOEING OPERATOR AEROSVIT RENEWS FLEET

IN UKRAINE WITH NEXT GENERATION 737 ORDER 
M2 Presswire, United Kingdom, Friday, Aug 03, 2007

17.  UKRAINE AGREES TO IMPRISON WAR CRIMINALS

CONVICTED BY UNITED NATIONS COURT
Associated Press (AP), The Hague, Tue, August 7, 2007

18.  UKRAINE MAN DECLARED THE WORLD’S TALLEST 
Associated Press Online, Wednesday, Aug 08, 2007

19. GERMANY: FLOSSENBUERG CONCENTRATION CAMP OPENS
AS MUSEUM ON 62ND ANNIVERSARY OF LIBERATION

President of Ukraine Viktor Yushchenko’s father detained at Flossenbuerg
Associated Press, Berlin, Germany, Monday, Jul 23 2007

20.  WHITE HOUSE GIVES IN ON ARMENIA ENVOY
It pulls the nomination of Richard Hoagland. Senate objected

because he wouldn’t call mass killings by Turks ‘genocide.’
By Paul Richter, Staff Writer, Los Angeles Times
Los Angeles, California, Saturday, August 4, 2007
 
 
22.  CULTURAL LEGACY OF THE KYIVAN MOHYLA ACADEMY
Internet Encyclopedia of Ukraine, July 2007 Newsletter
Dr. Marko R. Stech, Project Manager,
Toronto, Ontario, Canada, Tuesday, July 10, 2007
 
23.  THE CRIMEAN MOUNTAINS AND CRIMEAN RIVIERA
Internet Encyclopedia of Ukraine, August 2007 Newsletter
Dr. Marko R. Stech, Project Manager,
Toronto, Ontario, Canada, Tuesday, August 7, 2007
========================================================
1
. UKRAINE SHOULD LOWER BARRIERS TO THE WEST

ANALYSIS & COMMENTARY By Keith Smith
Financial Times, London, UK, Wednesday, Aug 1, 2007

Ukraine is too important for its energy investment and tax policies to be
ignored by the European Union and the US. If the Yanukovich government

is serious about closer economic and political ties to the west, it should
reverse its current policies and opaque practices, which are discouraging
western energy investment.

Ukraine needs to establish a transparent investment regime that encourages,
rather than discourages, non-Russian business in all sectors, including in
oil and gas exploration, development and production.

Only a level playing field for all energy investors and rational tax
policies that encourage western companies will lead to Ukraine’s integration
into the west. The development of a strong Ukrainian democracy and thriving
economy is important for stability in central Europe and therefore vital to
the security interests of Europe and the US.

Ukraine symbolises the dilemma faced by all of the central European states
as they search for greater energy security in an era of high oil and gas
prices. At the same time, they are compelled to deal with a Russia
determined to dominate its neighbourhood by manipulating the flow of energy
to its customers.

The Kremlin’s neo-colonial objectives are being achieved in central Europe
by working with complicit business groups and collaborative politicians in
the importing countries.

Ukraine is resource-rich, but control of natural resources by groups hostile
to western investors is a serious drawback to attracting foreign investment
in new energy production. Although Ukraine split from the Soviet Union in
1991, it has continued to maintain a more friendly investment climate for
Russian energy companies than for transparent western companies.

Three-quarters of Ukraine’s refining capacity is owned by state-owned
Russian companies, such as Gazprom. Gazprom creations, such as
EuralTransGas, help fund pro-Russian politicians.

Another Gazprom creation, RosUkrEnergo, is now increasing its ownership

and control over Ukraine’s internal gas market at the same time that western
companies are coming under pressure to close.

Western energy companies find it difficult to gain a foothold in Ukraine.
Several large integrated European companies have failed to break through
business barriers facing anyone but Russian or Ukrainian oligarchic groups.
The technology and financing advantages for Ukraine from western companies
are substantial.

Ukraine would clearly benefit from substituting greater domestic production
for costly imports. Security benefits would also flow from a decreased
reliance on a Russia that uses its massive energy resources to exert
political influence.
ENERGY COMPANIES HAVE TO SELL GAS 70% BELOW MARKET
The Ukrainian council of ministers made the situation worse in January this
year. It approved a budget act that obliges any energy company that is part
of a joint activity agreement, almost all of which are western companies, to
accept a fixed price for Ukrainian natural gas.

The price is about 70 per cent less than the market price. This has
depressed production and reduced investment. Although the stated purpose

of the new law is to supplement the state budget, the effect is to squeeze
western investors out of Ukraine.

The beneficiaries are local oligarchic groups which can avoid the new
tariffs by not being tied to a joint activity agreement and/or by evading
price limits through non-transparent deals with the state apparatus. Also
benefiting through reduced western competition is RosUkrEnergo.

Europe and the US remember Russia’s shut down in 2006 of the pipeline
carrying Turkmen and Russian natural gas supplies to Ukraine. The cut-off
affected gas supplies to several EU countries, raising European concerns
about the consequences of relying too heavily on Russian energy supplies.

The disruption resulted from a dispute between Kiev and Moscow over the
validity of their 2004 agreement on import prices and transit fees. Within
four days of the cut-off, Kiev agreed to a one-year, largely non-transparent
deal over price and volume.

Because of Ukraine’s geo-strategic importance, the west should focus more
attention on the country’s need for greater transparency, particularly in
the vital energy sector.

If Russia succeeds in reasserting control over Ukraine by manipulating the
flow of energy resources from Russia and from central Asia, it will be even
more ­difficult for the west to prevent the undermining of democracy in the
other newly democratic states of Europe.

Russia’s use of energy as a foreign policy tool could drive a wedge between
Europe and the US. Much will depend on the policies of the central Europeans
and especially the Ukrainians.
————————————————————————————————–
NOTE: The writer was a career diplomat with extensive experience in

central Europe and is now senior associate at the Center for Strategic
and International Studies [CSIS]  in Washington, DC
————————————————————————————————–
————————————————————————————————-
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
2. COUNTRY ANALYSIS ENERGY BRIEF – UKRAINE
By U.S. Department of Energy
 
U.S.-Ukraine Business Council (USUBC)
Washington, D.C., Wednesday, August 8, 2007

WASHINGTON – The Energy Information Administration of the U.S.

Department of Energy has just published the latest edition of its annual
“Country Analysis Brief” for Ukraine which provides information on
the energy situation in Ukraine.

The contents of the document include the following sections: Background;

Oil; Natural Gas; Coal; Electricity; Environment; Maps; Profile; Links and
Sources. Also included are a map, graph, and links to other related web
sites. Link to Ukraine Country Analysis Brief:
http://www.eia.doe.gov/emeu/cabs/Ukraine/Background.html.
                               UKRAINE BACKGROUND
Ukraine is important to world energy markets because it is a critical
transit center for exports of Russian oil and natural gas to Europe, as well
as a significant energy consumer.

Ukraine’s geographic position, linking East and West, while also holding
critical warm water ports on the Black Sea, has made the country a trade
link of growing importance between the former Soviet Union and Europe
for energy and other goods.

Ukraine is one of Europe’s largest energy consumers, and it consumes over
twice as much energy per unit of GDP than Germany. In 2005, almost half
of Ukraine’s energy consumption came from natural gas, and over 75 per-
cent of this natural gas came from Russia.

Since 2004, the price of imported natural gas from Russia has almost
doubled. The economic impact of these price increases on the economy will
depend on the pace at which Ukraine can implement energy efficiency reforms.

For a more in-depth discussion of the recent increases in natural gas prices
and energy efficiency reform in Ukraine, please consult a February 2007 IMF
Selected Issues Paper .

Although the reorientation of trade towards Europe and Asia has resulted in
an improved macroeconomic environment in Ukraine, political uncertainty
remains problematic.

Following the Orange Revolution in 2004, continued lack of clarity on the
division of powers between the Ukrainian Parliament, or Rada, and the
President continues to hurt the country’s investment climate. President
Viktor Yushchenko issued a decree to dissolve the Rada in April 2007,
and new elections are expected in September 2007.
————————————————————————————————
LINK: http://www.eia.doe.gov/emeu/cabs/Ukraine/Background.html
————————————————————————————————

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
3. ENERGY SECURITY: CENTRAL & EASTERN EUROPE
Report by Hudson Institute Senior Fellow Zeyno Baran
                        
U.S.-Ukraine Business Council (USUBC)
Washington, D.C., Wednesday, August 8, 2007
 
WASHINGTON – On July 25, 2007, Hudson senior fellow and director
of its Center for Eurasian Policy, Zeyno Baran, testified before the
Committee on Foreign Affairs, chaired by Chairman Tom Lantos, at a
hearing entitled “Central and Eastern Europe: Assessing the Democratic
Transition.”

Zeyno’s testimony focuses on the important issue of energy security. To

access the text of Ms. Baran’s testimony, please visit the link below:
http://hudson.org/files/pdf_upload/Zeyno%20testimony.pdf.
———————————————————————————————-
CONTACT: Zeyno Baran, Senior Fellow, Director, Center for
Eurasian Policy, Hudson Institute, zeyno@hudson.org.
Onur Sazak, Research Assistant, Center for Eurasian Policy
Hudson Institute, 1015 15th St. NW, Sixth Floor
Washington, DC, 20005, Tel: 202-974-6445;
Fax: 202-974-2410; onur@hudson.org.
————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
4. THE PIPELINE GAME

Business Europe: By Kyle Wingfield
The Wall Street Journal, New York, NY, August 9, 2007

Ceyhan, Turkey – The jetty that juts into the shimmering Gulf of Iskenderun
here is the end of the line for crude oil pumped 1,100 miles from the
Caspian Sea. This oil is most notable for where it doesn’t come from:
Russia. Yet this pipeline, and the many others planned for the east-west
corridor of Anatolia, can play only a small part in easing Europe’s energy
dependence on Russia.

“Supply security” has been the buzzphrase on the Continent ever since New
Year’s Day 2006, when Russia turned off natural gas taps to Ukraine and
customers much farther west felt the impact. The term covers several issues,
but suffice it to say that Europe is scared to death of leaning too heavily
on Russian energy sources and Russia-owned pipelines.

Europe’s dependence will likely get worse before it gets better. North Sea
supplies are beginning to fall off; North African routes require a strong
stomach for political instability; abundant liquefied natural gas still lies
over the horizon.

That leaves Russia as not only the biggest exporter of oil and gas to Europe
in the future, but the main thoroughfare for non-Russian sources such as
Kazakhstan and Turkmenistan.

Enter Turkey. It’s the only other country that connects Eastern Europe with
Central Asia by land, and its outlet to the Mediterranean at Ceyhan offers
stability and proximity to still more producing regions other than Russia.

That doesn’t make Turkey, however, the answer to European energy prayers.
For one thing, Ankara doesn’t want to endanger its own important energy
relationship with its would-be transit rival; 59% of the natural gas used in
Turkey comes from Russia.

Moscow is also a partner in one of Turkey’s most important new pipeline
projects: the Samsun-Ceyhan conduit that will allow Russian crude to travel
overland from the Black Sea to the Mediterranean and bypass the
tanker-choked Bosphorus and Dardanelles straits. As much as the Turks want
to sell themselves to their fellow Europeans as the anti-Russians, they
can’t risk rattling the Bear’s cage too loudly.

Even assuming Turkey can keep Moscow happy, it will struggle to find
different sources of oil and gas. Several producing nations are lining up to
supply Turkey: Azerbaijan, Iran, Iraq, Kazakhstan, Turkmenistan, even Egypt.

Yet most of these plans present their own problems. It’s unknown, for
instance, whether Azerbaijan’s Shah Deniz fields in the Caspian Sea can
provide substantial gas supplies, at least in the near to medium term.

Iraqi oil flowed through Turkey from 1976 until 1990, and then from 1996 to
2003 under the U.N.’s Oil for Food program. But today only about one
tanker’s worth of oil makes it from Kirkuk to Ceyhan each month. Turkish
officials say they don’t expect security conditions to allow a more
consistent flow for a few more years.

What’s more, Russia already has deals to provide transit for Kazakh and
Turkmen supplies, meaning there will be less gas for a planned line to cross
the Caspian and end in Turkey. Then there’s the question about how badly
sanctions or possible military action against Iran for its nuclear program
could disrupt that supply. (At an EU-Turkey energy conference in Istanbul
this summer not a single speaker raised this issue — a sign of the
head-in-the-sand approach Europeans are taking to that crisis.)

When reminded of these hurdles, the Turks point to Ceyhan. Back in the
1990s, many doubted that the pipeline that ends here — from Baku via
Tbilisi — would ever be built. But the BTC pipeline, named for those three
cities, moved 143 million barrels of crude in its first year of operations
that ended in June.

This success proves Turkey can overcome obstacles, Energy Minister Hilmi
Güler said at the Istanbul energy conference, but the country needs the EU’s
help in dealing with third countries. “There is gas under the ground [that
is] not being operated” in Caspian rim countries like Azerbaijan, Mr. Güler
said. “You have to force them to invest.”

By “you,” Mr. Güler of course meant “You”-ropeans. Here arises perhaps the
biggest question mark when it comes to Turkey, Europe and energy: How
unified are EU member states? So far, the answer is “not very.”

Consider the much-ballyhooed Nabucco pipeline that would take gas from
Turkey through Bulgaria, Romania and Hungary to Austria, from which it could
be sent on to Western Europe. This pipeline — slated to begin operations in
2012 — would transport 25 billion to 31 billion cubic meters of natural gas
per year.

That’s anywhere from 8% to 15% of the expected increase in demand in Europe
by 2020, depending on whose estimate you use. EU Energy Commissioner Andris
Piebalgs insists the Union remains “firmly committed” to the project.

Yet Nabucco, named after a Verdi opera, is full of drama. Five firms —
Turkey’s Botas, Austria’s OMV, Hungary’s MOL, Romania’s Transgaz and
Bulgaria’s Bulgargaz — each own 20% of the Nabucco partnership. But back in
May OMV agreed to give a stake in the Central European Gas Hub at
Baumgarten, which Nabucco is supposed to feed, to Russian monopolist
Gazprom.

That dented the planned pipeline’s viability in many people’s view. MOL,
too, is increasing imports from Gazprom. And the Russian company struck a
deal in June with Italy’s Eni to route gas across the Black Sea to Bulgaria,
bypassing Turkey altogether.

So despite Turkey’s own recent agreements to deliver Turkmen and Iranian
natural gas through Nabucco, Gazprom may be able to do just enough damage in
its deals with EU members to undermine the project.

OMV Chairman Wolfgang Ruttenstorfer, for one, maintains that “there is no
contradiction between our good relations with Russia and Nabucco,” noting
that there will be plenty of increased gas demand to go around. But if
nothing else, these and other bilateral agreements between Gazprom and EU
members give lie to the notion that Europe can speak with a single voice
when it comes to energy.

“The EU sometimes acts as a union, sometimes as separate states,” says Mr.
Güler. “We have to act together here.” Counting on European energy
cooperation isn’t a safe play. That’s one of the main reasons the Continent
finds itself in its Russian predicament and why Turkey — or any other
country — can’t seriously challenge its dominance.
————————————————————————————————
Mr. Wingfield edits the Business Europe column.
————————————————————————————————
LINK: http://online.wsj.com/article/SB118660833923292157.html

————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
Send in names and e-mail addresses for the AUR distribution list.
========================================================
5. UKRAINE’S GREEN TRADING OPPORTUNITY

OP-ED, Kyiv Post, Kyiv, Ukraine, Wednesday, Aug 01 2007

Achieving energy security, modernizing technologies and promoting energy
efficiency are critical economic priorities for Ukraine. The Kyoto Protocol
and international emission trading present an opportunity for Ukraine to
raise significant new funds for these priorities.

Selling a portion of Ukraine’s surplus emission quotas under the Kyoto
Protocol can finance environment-friendly investments in energy, industry,
transport, housing, forestry, agriculture and education, says new World Bank
report entitled ‘Ukraine Options for Designing a Green Investment Scheme
under the Kyoto Protocol’ recently presented in Kyiv.

This report contains recommendations that could be pivotal for Ukraine to
maximize the revenue of trading and benefits of modernization investments.

Under the Kyoto Protocol industrialized countries have committed to reduce
their greenhouse gas emissions (GHG) during 2008-12.

Emission reduction commitments are defined as a cap on the volume of
greenhouse gases (GHGs) that can be emitted and are quantified by Assigned
Amount Units (AAUs) allocated to each participating industrial country and
economies in transition.

Many of the EU-15 countries, Canada, and Japan have emissions that are above
their targets under the Kyoto Protocol. In addition to domestic emission
reduction measures, they may use project-based emission reduction units and
national quotas of other countries, to meet their targets.

Such transactions are beneficial for both sides and reduce global costs of
emission reduction without harming environment. Greenhouse gas emissions
cause the same climate effect irrespective of where they occur.

Ukraine, like Russia and some other transition economies, is projected to
have a substantial surplus quota, some of which can be set aside as a
reserve for future growth, and the rest could be traded.

The surplus is due mainly to a drop in GHG emissions during the economic
recession and restructuring from 1990-96. For example, in 1999, the
country’s emissions were 43 percent below the 1990 level.

Globally the surplus emission quotas in Central and Eastern Europe
significantly exceed the demand in industrialized countries.

Because of concern that these excess allowances may threaten environmental
integrity of the Kyoto Protocol the buying countries require that sellers
use the proceeds from trade for emission reduction measures at home through
a transparent, credible mechanism that became internationally known as green
investment schemes.

Peter Thomson, Sector Director for the Sustainable Development Unit of the
World Bank, noted that the timely adoption and effective implementation of
regulation that would enable implementation of Ukraine’s commitments under
the United Nations Framework Convention on Climate Change, including a
realistic schedule for implementation of a green investment scheme will be
crucial in securing benefits of the future emissions trading.

Projections of Ukraine’s AAU surplus vary. The Ministry of Economy
estimates the headroom at 2.225 billion AAUs and proposes that 50 percent
of this surplus is held in reserve during the first commitment period making
the total volume that could be traded under this scenario 1.125 billion.

In the World Bank report a conservative AAU surplus of 1.5 billion is
assumed. Not all this surplus needs to be traded, but selling even a small,
safe portion can generate billions of dollars if done properly.

There is no market price for assigned amount units because there is no
active market and limited forward trading. A market price will only be
established after trading begins: at the earliest in 2008.

The value of Ukraine’s surplus will depend on several factors, such as
credibility of the green investment scheme and a balance between supply
and demand.

If Canada makes an effort to comply with its Kyoto obligations (which is
increasingly unlikely) and Russia does not achieve eligibility for trading,
then Ukraine’s surplus could be critical for countries to meet their Kyoto
targets.

In this scenario, Ukraine’s credits would be very valuable. But in the most
probable scenarios Ukraine will need to compete with other sellers for
relatively smaller and demanding buyers.

Three scenarios of the potential market value of Ukraine’s AAU surplus are
shown in the table above.  It is assumed that Ukraine can successfully
engage in AAU trading once the market gets underway, and it can be
sustained.

Many of the factors determining market value are beyond Ukraine’s control
and are faced by other potential sellers. However, Ukraine can take steps to
improve the value of its surplus including:

     [1] Ensure sound management of its AAU assets and liabilities;
     [2] Design and implement transparent and accountable green investment
          scheme that includes credible mechanisms to select   projects,

          monitor financial flows and verify environmental benefits;
     [3]Identify a pipeline of quick-to-implement projects for greening.

The main demand for Ukrainian assigned amount units is likely to come from
Japan, Italy, and Spain – Ukraine should consider targeting these countries
first when marketing its assigned amount units.

While Ukraine has made notable progress compared to other potential sellers,
the enabling domestic institutions and legislation are yet to be
established.

The Cabinet of Ministers has drafted a resolution that amends the action
plan for implementation of Ukraine’s commitments under the United Nations
Framework Convention on Climate Change to include a realistic schedule for
implementation of a green investment scheme.

The timely adoption and effective implementation of this resolution will be
crucial in securing benefits of the future emissions trading.

This advice was compiled from reports issued by the World Bank.
————————————————————————————————
LINK: http://www.kyivpost.com/opinion/oped/27082/
————————————————————————————————

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================      
6. U.S. PRESSING FOR CASPIAN GAS TO BE EXPORTED TO EUROPE

Interfax, Baku, Friday, Aug 03, 2007

BAKU – The United States is intensively pursuing an initiative to have natural

gas from the Caspian region exported to Europe, U.S. deputy assistant
secretary of state for European and Eurasian affairs Matthew Bryza said at
a meeting with Azeri Industry and Energy Minister Natik Aliyev.

Washington also stands for “healthy competition in the energy industry and
considers it unacceptable to use this factor as a means of political
pressure,” the ministry said in a report on the meeting, held in Baku.

Construction of a gas pipeline between Greece and Turkey to transmit gas
from Azerbaijan’s Shah Deniz field to Europe was also raised at the meeting
and Aliyev has been invited to attend the Bryza praised an Azeri-Greek
agreement on cooperation in the oil and gas industry.

He and Aliyev also discussed a proposal to set up a single energy space to
comprise Azerbaijan, Georgia, Ukraine, Baltic and Eastern European
countries.

Bryza said it would be a serious contribution to the energy security of
those countries if the proposal were put into practice.
pipeline’s opening ceremony in Turkey next month.

In discussing the proposed Trans-Caspian Gas Pipeline, Bryza said the United
States thought highly of Azerbaijan’s transit resources and that Washington
remains in talks on proposals for exporting Central Asian, including
Turkmen, hydrocarbons to Europe through Azerbaijan.

————————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
7. SHELL, UKRGAZVYCOBUVANNIA TO START
GEOLOGICAL EXPLORING TWO UKRAINIAN FIELDS

Interfax, Kyiv, Ukraine, Friday, Aug 03, 2007

KYIV – Shell Ukraine Exploration & Production, jointly with
Ukrgazvydobuvannia, will soon start geological prospecting at the Shebelynka
and the West-Shebelynka zones in the Dnieper-Donetsk Basin, with forecast
reserves of 400 billion cubic meters of gas, Ukrgazvydobuvannia Director
General Yaroslav Yaremiychuk said Thursday.

“Today we approved a working program for the first phase of join activity in
2007-2009. The document, prepared with the support of the Fuel and Energy
Ministry and Naftogaz Ukrainy, is the result of fruitful cooperation between
the two companies’ experts,” he said.

The program includes geological exploration of deep deposits (over 6,000
meters) at the Shebelynka and the West-Shebelynka zones. Yaremiychuk said.
He said that these sections were chosen as the most promising for the first
phase of joint activity.

“Shell investment in the first phase of joint work will amount to $100
million, including $40 million in 3D seismic exploration of 300 square km,
and $60 million in drilling two exploration wells to a depth of over 6,000
meters,” he said.

Drilling of exploration wells at the Shebelynka and the West- Shebelynka
sections may start in the first half of 2009. Yaremiychuk said that he hopes
that Ukraine will manage to significantly increase its gas reserves as a
result of joint activity with Shell Ukraine Exploration & Production. rd
————————————————————————————————

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
NOTE: Send in a letter-to-the-editor today. Let us hear from you.
========================================================
8. SHELL JOINS THE U.S.-UKRAINE BUSINESS COUNCIL 
 
U.S.-Ukraine Business Council (USUBC)
Washington, D.C., Monday, August 6, 2007
 
WASHINGTON – The Executive Committee of the U.S.-Ukraine
Business Council (USUBC) has just approved the Shell Oil Company
as the 39th member of the Council.

Tracey McMinn, Manager, International Government Relations, Shell,

Washington, DC office, informed the Council of Shell’s decision to
become a member of the Council.  The Council is very pleased to
welcome Shell as a new member.

Morgan Williams, SigmaBleyzer, President of the USUBC, recently

had a meeting in Kyiv with the General Manager of Shell Ukraine
Exploration & Production, LLC, Patrick van Daele, and with their
Manager of Communications and Government Affairs in Kyiv,
Antonius Papaspiropoulos.

Shell has major programs in Ukraine regarding the development of

branded retail service stations and in energy exploration. (See news
release below).

Shell (www.shellus.com) is the 16th new member for the U.S.-Ukraine

Business Council in the last six months. The Council’s goal is to double
its membership in 2007 to at least 50 members, Williams said.
—————————————————————————————————
MANAGING DIRECTOR FOR DEVELOPMENT OF SHELL RETAIL
CHAIN IN UKRAINE TO HEAD UKRAINIAN JV OF SHELL & ALLIANCE

Interfax Ukraine Energy Weekly, Kyiv, Ukraine, April 9, 2007

KYIV – The managing director for development of Shell retail chain in
Ukraine, Christo Ivanchev, will head a joint venture to manage the filling
station retail chain of OAO Alliance (Russia) in Ukraine, which is being
created by British-Dutch Shell International Petroleum Company Ltd (Shell)
and OAO Alliance.

“Christo Ivanchev will be director. He successfully managed the development
of our filling station retail chain in Bulgaria for several years,” Shell
Executive Vice-President for retail sales Joseph Walt. The joint venture has
yet no name, although it will be named soon, the manager said.

As reported, on March 29, Royal Dutch Shell Plc and Russia’s Alliance
Group have signed an agreement to form a joint venture to run the Russian
company’s filling station network in Ukraine.

Alliance planned to contribute 150-160 filling stations and that Shell would
contribute cash, licenses and its trademark. Shell will own 51% of the joint
venture. The companies plan to register the joint venture in Ukraine by July
1, 2007.

The joint venture would control between 15% and 20% of the Ukrainian
market for retail petroleum products and that the re-branding of filling
stations would take two or three years.

Alliance Ukraine was authorized by Shell Exploration Company B.V. to
use the Shell trademark at its own filling stations in July 2006. No more
than 10 Alliance filling stations currently work under the Shell brand.
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]

========================================================
9. U.S. AMBASSADOR TAYLOR & ENVIRONMENT PROTECTION
MIN DISCUSS PREPARATIONS FOR BUILDING OF NUCLEAR WASTE
STORAGE FACILITY FOR UKRAINIAN NPPS BY U.S. HOLTEC INT
Interest in strengthening Ukrainian-U.S. cooperation in environmental
protection and the rational use of natural resources

Interfax Ukraine, Kyiv, Ukraine, Sunday, July 29, 2007

KYIV – Environment Protection Minister Vasyl Dzharty and U.S. Ambassador
to Ukraine William Taylor discussed the creation of a central nuclear waste
storage facility for three out of four Ukrainian NPPs by U.S. Holtec
International, the press service of the Environment Protection Ministry
reported on Tuesday.

The press service said that Dzharty during the meeting briefed the
ambassador on problem issues concerning the realization of the project,
which firstly concern the location of the facility.

The minister said that the creation of the a central nuclear waste storage
facility would allow Ukraine to stop transfers of nuclear waste to Russia,
which cost the country over $100 million per year.

Taylor, in turn, said he understood all of the complexities and the
importance of the creation of the facility in Ukraine.

The participants in the meeting confirmed their mutual interest in
strengthening Ukrainian-U.S. cooperation in environmental protection
and the rational use of natural resources.

As reported, Energoatom in December 2005 signed a contract with Holtec
International to build a centralized nuclear waste storage facility in
Ukraine.
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
10. CONTRIBUTORS ASSEMBLY OF NUCLEAR SAFETY ACCOUNT
APPROVES UKRAINE’S AGREEMENT WITH U.S. COMPANY
HOLTEC ON COMPLETION OF SPENT NUCLEAR FUEL STORAGE-2

Olena Honcharenko, Ukrainian News Agency
Kyiv, Ukraine, Wednesday, July 25, 2007

KYIV – During the meeting on July 18, the Assembly of Contributors of the
Nuclear Safety Account approved the agreement between Ukraine and Holtec
International (United States) on completing the construction of the second
storage facility for spent nuclear fuel at the Chornobyl Nuclear Power
Plant.

Minister for Emergency Situations and Protection of Population from
Chornobyl Accident Consequences Nestor Shufrych announced this at a
press conference after a Cabinet meeting.

“The Assembly of Contributors of the Nuclear Safety Account had a meeting
on July 18 which decided on allocation of funds to Ukraine for the
completion of the second dry storage facility for spent nuclear fuel from

Chornobyl NPP’s reactors No.1, No.2, and No.3 to a total sum of EUR
200 million,” the minister reported.

According to the report from the ministry’s press service, Holtec’s
propositions have no technical shortcomings and may be licensed.

The Assembly approved the strategy proposed by the state-run specialized
enterprise named “Chornobyl Nuclear Power Plant” for putting into operation
a plant processing liquid radioactive waste, and decided to allocate
required funds.

Ukraine plans to agree with NOVARKA consortium (France) on building a new
confinement over the fourth unit of the Chornobyl NPP in September. “The
contracts are to be signed in September 2007,” the statement reads. The next
meeting of the Assembly of Contributors is scheduled for November.

As Ukrainian News earlier reported, in May, state-run specialized enterprise
Chornobyl Nuclear Power Plant and French company AREVA NP (earlier
consortium Framatome ANP) broke the contract for construction of the dry
storage facility No.2 for spent nuclear fuel.

On July 12, 2006, Holtec International started appraising uncompleted dry
storage facility No. 2 intended for spent fuel from the Chornobyl Nuclear
Power Plant specialized enterprise.

That time the NPP refused to prolong the agreement with the Framatome
ANP consortium (France) on intentions to perform simultaneous work,
particularly, due to the consortium’s failure to carry out the ‘simultaneous
work’ schedule: elaboration of a conceptual decision on modification of the
spent fuel storage project, completion of the previous report on safety
issues, etc., and also due to poor quality of the documents presented.
Framatome began to wind up its work.

During the assembly of the Nuclear Safety Council donors in London on June
27, 2006, representatives of the Chornobyl nuclear power plant announced
their firm intention to cancel the contract with Framatome (France), which
was the general contractor in the project for building the second storage
for spent fuel.

The assembly of donor-countries to the Chornobyl Shelter Fund authorized
Ukraine to sign contracts worth EUR 490 million with NOVARKA consortium
(France) for construction of a new shelter over the Chornobyl nuclear power
plant’s destroyed fourth reactor.

———————————————————————————————–
NOTE:  Holtec International is a member of the U.S.-Ukraine Business
Council (USUBC) in Washington, D.C.
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
11. U.S. AMBASSADOR TAYLOR & UKRAINIAN ENVIRONMENTAL
PROTECTION MINISTER DISCUSS VANCO INTERNATIONAL

Yevhen Holovatiuk, Ukrainian News Agency
Kyiv, Ukraine, Tuesday, July 24, 2007

KYIV – Environmental Protection Minister Vasyl Dzharty and U.S.
Ambassador to Ukraine William Taylor have discussed the situation with
the work to sign a production sharing agreement (PSA) for the Kerch
Area of the Black Sea shelf between the Cabinet of Ministers and U.S.
based Vanco International. Ukrainian News learned this from the press
service of the Environmental Protection Ministry.

Dzharty noted during the meeting that Ukraine observes the schedule for the
work on the agreement and a document was submitted to the representatives
of Vanco in June for familiarization and making proposals and notes.

However, in spite of the schedule for the work on the agreement endorsed by
the interagency commission Vanco didn’t give the commission its conclusions
and notes with required explanations.

Instead, the company sent to the Cabinet of Ministers a new draft production
sharing agreement, which needed to be studied by Ukraine. “Such work
continues. To date, 70% of disputed issues have been settled,” the press
service said.

In the near future, according to the statement, a meeting of the interagency
commission for the PSA will take place to finalize the draft agreement with
representatives of Vanco International. Taylor said in turn he was ready to
render help to see the PSA signed as soon as possible.

As Ukrainian News earlier reported, Economy Minister Anatolii Kinakh
predicted that the Cabinet of Ministers and Vanco International
(Switzerland) would sign a production sharing agreement (PSA) for the
Kerch Area of the Black Sea shelf before October.

The Cabinet of Ministers postponed the signing of the PSO with Vanco
International until October 21. The interagency commission endorsed the
draft at its April 3 meeting. The decision was passed following
consideration of Vanco International’s appeal.

The draft agreement provides for sharing products from the trans-Kerch
segment of the Black Sea shelf in the ratio of 60:40 (60% to the state and
40% to the investor) after the start of development of the segment, and
50:50 during the stage before the start of development (before recoupment
of investments).
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================

If you are receiving more than one copy of the AUR please contact us.
========================================================
12. UKRAINE’S GAS PRODUCTION TO COVER 50% OF
DEMAND IN FIVE YEARS SAYS ENERGY MINISTER BOIKO
Agreement with Vanco Int could be signed soon

Interfax Ukraine Business Express
Kyiv, Ukraine, Wednesday, August 1, 2007

KYIV – Ukraine will increase annual gas production from the current 20
billion cubic meters to 30 billion cubic meters in five years, Fuel and
Energy Minister Yuriy Boiko said at a press conference on Wednesday
in Kyiv.

Given a decline in annual gas consumption from the current 70 billion cubic
meters to 60 billion cubic meters, domestic production will cover about
50% of demand.

“The gas balance will change in five years: the country will consume 60
billion cubic meters of gas and will produce 30 billion cubic meters by
itself, importing the remaining 30 billion cubic meters,” Boiko said.

The Ukrainian government is preparing a draft strategy of gas production in
the Black Sea, which envisages increasing production by 7 billion-8 billion
cubic meters of gas per year in the next three or five years, the minister
said.

The first production sharing agreement with U.S.-based Vanco International
Limited could be signed in the near future, the minister said, adding that
Ukraine forwarded its version of the agreement some two months ago.

According to earlier reports, as of July 24 Ukraine’s interdepartmental
working group and Vanco International Limited came to terms on some
70% of problems related to the production sharing agreement on the
Kerch oil and gas section of the Black Sea shelf.
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
Send in a letter-to-the-editor today. Let us hear from you.
========================================================
13. MIN KINAKH EXPECTS PSA WITH VANCO FOR KERCH
AREA OF BLACK SEA SHELF TO BE SIGNED BY OCTOBER

Yevhen Holovatiuk, Ukrainian News Agency
Kyiv, Ukraine, Sunday, July 22, 2007

KYIV – Economy Minister Anatolii Kinakh predicts that the Cabinet of
Ministers and Vanco International (Switzerland) will sign a production
sharing agreement (PSA) for the Kerch Area of the Black Sea shelf before
October. He announced this at a press briefing.

Kinakh said the sides are about to finish working out the terms of the
agreement and then it will be signed in two months.

“We have found the balance of interests. Two months or less and these
results will be reflected in a corresponding agreement,” the minister said
and added that the political situation in the country will not affect the
process.

As Ukrainian News earlier reported, the Cabinet of Ministers postponed the
signing of the PSO with Vanco International until October 21.

On April 26, the interagency commission for organizing conclusion and
implementation of product distribution agreements made the decision to
prolong by six months the term for striking such deals on the Kerch sector
of the Black Sea shelf between the Ukrainian Cabinet of Ministers and Swiss
company Vanco International Ltd.

The interagency commission endorsed the draft at its April 3 meeting. The
decision was passed following consideration of Vanco International’s appeal.

The draft agreement provides for sharing products from the trans-Kerch
segment of the Black Sea shelf in the ratio of 60:40 (60% to the state and
40% to the investor) after the start of development of the segment, and
50:50 during the stage before the start of development (before recoupment
of investments).

———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
14. INTRODUCING BIOFUEL
How to launch this alternative mechanism?

By Natalia BILOUSOVA, The Day Weekly Digest #20
Kyiv, Ukraine, Tuesday, July 10, 2007

Ukraine is actively introducing various alternative renewable energy
sources, including biofuel, which is being used on a small scale, mostly in
small populated areas. The Verkhovna Rada recently passed a bill ordering
large cities to begin using it (by 2010).

President Yushchenko did not consider it, and therefore did not sign or
veto it. As a result, this document, as important as it is for Ukraine, is
in limbo. Meanwhile, our country is sustaining losses precisely because

of the absence of biofuel legislation.

Leonid Kozachenko, president of the Ukrainian Agrarian Confederation,
says that these losses are considerable. The legislative standstill is
slowing down Ukraine’s already sluggish agrarian growth rate. Biofuel can be
produced from raw agricultural materials, such as rape, corn, soybeans,
sugar beet, and other crops.

Given normal conditions, Ukrainian farmers could earn some 10 million
dollars extra every year, and this money would introduce cardinal changes to
the situation in the countryside. By relying on bioenergetics, Ukraine would
also be able to meet Europe’s increasing demands for biofuel.

Of course, national independence in terms of energy supplies comes first. We
can achieve it by adopting alternative technologies. Vasyl Motsny, Ukraine’s
Deputy Minister of Agriculture, sounds quite optimistic when he shares his
views on the prospects of cheaper energy sources.

Kozachenko, however, believes that biofuel will only help hold back energy
resource prices. There is also a big problem of the rise in demand and,
consequently, in the price of raw materials in the sphere of bioenergetics;
this will spark a rise in prices for foods, such as milk, meat, and bread.

Acceptable prices for the new- generation energy source can be set only by
producing it on a large scope. This, in turn, requires larger crop
plantings.

This year the Ukrainian government heeded the recommendations of experts
and adopted measures to increase the raw material base of bioenergetics.
Thus, Ukraine is expected to harvest some 1.2 million tons of rape, almost
two times more than last year. However, increasing the raw material base
will not solve the problem, says the deputy minister of agriculture.

Our country mostly exports alternative energy sources to Saudi Arabia,
Egypt, and other countries. Meanwhile, the creation of a network of
processing factories in Ukraine appears to be a more rational way of
lowering energy supply costs.

Motsny says that, in order to launch this alternative mechanism, it is
necessary to modernize existing facilities. This year (2007) the government
allocated 15 million hryvnias to re-equip several alcohol-producing
factories so that they can start manufacturing methanol instead of ethanol.

There are plans to build 19 enterprises in various regions of Ukraine. Lviv
and Kyiv oblasts already have the documentation for the construction of
factories capable of producing an annual 100,000 tons of biofuel.

In addition to such long-term projects, the government proposes more radical
measures, like a subsidy worth 50 hryvnias per hectare of rape for the
manufacture of biofuel, per farmer. There will be tax benefits, like excise
exemptions.

At the same time, budget appropriations are not enough to quickly launch
this alternative energy supply mechanism. Preliminary estimates show that in
2007 the investment component may amount to several hundred million
hryvnias. “There are many investors with sackfuls of hard cash hanging
around Ukraine, who are waiting for the starting signal.

What’s holding back the long-awaited investments is the absence of legal
guarantees,” says Mykhailo Hladii, chairman of the Parliamentary Committee
on Agriculture and Land Relations. There must be laws that set forth clearly
formulated rules of the game for foreign investors, but there is no one to
adopt them.
———————————————————————————————
LINK: http://www.day.kiev.ua/184208/

———————————————————————————————
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
15. FUNDING BOOST FOR CARDINAL RESOURCES

By Toby Shelley, Financial Times, London, UK, Tuesday, July 3 2007

LONDON – Cardinal Resources has secured a commitment from Hares

Group, which holds a 19 per cent stake in the energy company, to fund
its short-term working capital requirements.

Cardinal, which operates in Ukraine, faces a cash shortfall of $360,000
(£179,000) a month following its decision to withhold gas production

pending clarification of whether it is subject to a government price cap
or can be sold at market prices that are two to three times higher. The
company described the political situation in Ukraine as “unfavourable”.

The company said the cost of completing an infrastructure project had
overrun. Also, general and administrative costs increased and cost reduction
targets were not met. In the first quarter Cardinal was in breach of its
financial covenants. Directors said they were pursuing a medium-term
financing package.

The company made an annual operating loss of $7.85m, down from

$8.63m the previous year. The shares fell 2¾p to 11¾p yesterday.
———————————————————————————————
NOTE:  Cardinal Resources is a member of the U.S.-Ukraine
Business Council (USUBC) in Washington, D.C.
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
16. ALL BOEING OPERATOR AEROSVIT RENEWS FLEET
IN UKRAINE WITH NEXT GENERATION 737 ORDER 

M2 Presswire, United Kingdom, Friday, Aug 03, 2007

SEATTLE, — AeroSvit – Ukrainian Airlines is ordering up to 14 Boeing  
737-800 airplanes.’ The Kiev-based carrier signed an order for seven
737s valued at $523 million at list prices, and secured purchase rights for
another seven.’

AeroSvit will equip the airplanes with fuel-saving Blended Winglets. This
order marks the AeroSvit’s first direct purchase from Boeing since the
carrier was founded in 1994.

All-Boeing operator AeroSvit will gradually replace its fleet of 13 737
Classic airplanes with the Next-Generation 737s, today’s most
technologically advanced single-aisle commercial jetliner.

“This order is significant for Ukrainian aviation. It demonstrates dedicated
execution of our replacement strategy and is an indicator of Ukraine’s
current economic development and progress as an important player in
international business and tourism,” said Aron Mayberg, director general

of AeroSvit.

“Boeing demonstrated in-depth knowledge of our business and, with the
Next-Generation 737, presented a compelling solution to our future needs.

We look forward to continuing our excellent cooperation.”

AeroSvit operates three Boeing 767s on its long-haul services to
destinations including Delhi, Bangkok, Shanghai, Beijing, Toronto and

New York.

“Travel to and from Ukraine is prospering, along with the rest of Eastern
Europe.’ AeroSvit is showing a keen sense of business by preparing now

for future growth,” said Craig Jones, vice president of Sales, Russia/CIS,
Boeing Commercial Airplanes.

“The Next-Generation 737’s improved capabilities and economics will allow
AeroSvit to offer passengers greater comfort and affordability and more
reliable on-time service.”

The 737 is the most successful commercial airplane family in history, with
more than 7,000 orders. Boeing has more than 1,500 unfilled orders for the
Next Generation 737 worth over $100 billion.

————————————————————————————————
NOTE:  Boeing is a member of the U.S.-Ukraine Business
Council (USUBC) in Washington, D.C.
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
17. UKRAINE AGREES TO IMPRISON WAR CRIMINALS
CONVICTED BY UNITED NATIONS COURT

Associated Press (AP), The Hague, Tue, August 7, 2007

THE HAGUE – Ukraine signed an agreement Tuesday with the Yugoslav

war crimes tribunal to incarcerate convicted criminals, the first country
outside Western Europe to offer its prisons to the U.N. court.

The tribunal said Ukraine became the 12th country to sign an enforcement
agreement. The court was established in 1993 to prosecute those most
responsible for crimes against humanity and war crimes during the violent
breakup of the former Yugoslavia and the 1999 Kosovo war.

Suspects are locked up at the tribunal’s detention center, a wing of a
maximum security Dutch prison in the Hague suburb of Scheveningen.

Once convicted, and after the completion of any appeals process, war
criminals serve their sentences in countries that agree to take them. The
Netherlands isn’t one of them.

Currently, 26 convicts are imprisoned in Belgium, the U.K., Italy, Finland,
Norway, Sweden, Austria, France, Spain, Denmark and Germany.

Since its creation, the court has indicted 161 people and sent 51 to prison.
Ten more convictions are under appeal and 40 cases are in the trial or
pretrial stage.

Four suspects are still at large, including former Bosnian leader Radovan
Karadzic and his top general, Ratko Mladic. The court is due to close its
doors by 2010.
———————————————————————————————–
[return to index] Action Ukraine Report (AUR) Monitoring Service]
========================================================
You are welcome to send us names for the AUR distribution list.
========================================================
18. UKRAINE MAN DECLARED THE WORLD’S TALLEST 

Associated Press Online, Wednesday, Aug 08, 2007

A Ukrainian man is the tallest person in the world at 8 feet 5 inches,
overshadowing a Chinese man who previously held the title, Guinness

World Records said Wednesday.

Leonid Stadnik, a 37-year-old former veterinarian, is 8 inches taller than
the former titleholder, China’s Bao Xishun, who measured 7 feet 9 inches,
Guinness World Records spokeswoman Amarilis Espinoza said in London.

Stadnik’s growth spurt started at age 14 after a brain operation apparently
stimulated his pituitary gland, which produces the human growth hormone.

He lives with his mother, Halyna, in northwestern Ukraine, taking care of
the family’s house and garden. According to Guiness, the tallest man in
medical history was Illinois native Robert Pershing Waldlow, who was 8

feet 11 inches and died in 1940 at the age of 22.
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
19. GERMANY: FLOSSENBUERG CONCENTRATION CAMP
OPENS AS MUSEUM ON 62ND ANNIVERSARY OF LIBERATION
President of Ukraine Viktor Yushchenko’s father detained at Flossenbuerg

Associated Press, Berlin, Germany, Monday, Jul 23 2007

BERLIN – Holocaust survivors on July 22 marked the 62nd anniversary of the
Flossenbuerg concentration camp liberation at the opening ceremony for a
museum on the site.

Ukrainian President Viktor Yushchenko, whose father was detained at
Flossenbuerg from December 1944 to April 1945, took part in the memorial
service.

“For me this concentration camp has a very human dimension,” Yushchenko
said, adding that he had a 1944 aerial view of Flossenbuerg showing the camp
and the prisoners and that “I know one of those people is my father.”

An estimated 30,000 prisoners lost their lives at Flossenbuerg in the
southern German state of Bavaria. Many of them were from the Soviet Union
and Eastern Europe, including Jews from Hungary and Poland, as well as
political prisoners from Germany.

From its founding in 1938 to its liberation on April 23, 1945, by American
troops, more than 100,000 people were detained at the camp and its more than
90 external branches.

“I bow my head in front of you,” Bavarian Governor Edmund Stoiber said in a
speech to the 84 former prisoners who participated in the ceremony. “We will
do everything to make sure that you will never be forgotten.”

After World War II, parts of the camp were torn down and replaced by a
factory and private homes. Only in the mid-1990s did former prisoners start
returning to Flossenbuerg to push for a memorial.

Several camp barracks were restored and a research center was opened. The
new permanent exhibition will focus on the suffering of individuals.
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
20. WHITE HOUSE GIVES IN ON ARMENIA ENVOY
It pulls the nomination of Richard Hoagland. Senate objected

because he wouldn’t call mass killings by Turks ‘genocide.’

By Paul Richter, Staff Writer, Los Angeles Times
Los Angeles, California, Saturday, August 4, 2007

WASHINGTON – The White House on Friday formally withdrew its nominee for
ambassadorship to Armenia, yielding to senators who opposed the candidate
because he refused to call World War I-era killings of Armenians by Ottoman
Turks a genocide.

The move came after the nominee, Richard E. Hoagland, a career foreign
service officer, asked President Bush in a letter to drop the effort, saying
he believed there was no longer any chance the Senate would confirm his
selection.

The administration submitted Hoagland’s nomination to the Senate in 2006,
and again in January. But opposition quickly took shape because in his
confirmation hearing Hoagland, following administration policy, deplored the
killings but avoided using the word “genocide.”

Turkey, an important U.S. ally, views the word as provocative and inaccurate
and has insisted that the deaths of 1.2 million Armenians in the last years
of the Ottoman Empire were not acts of genocide.

The mass killings are an increasingly contentious issue between Congress and
the Bush administration, and between the United States and Turkey.

A majority of members of the House is now on record favoring a pending
resolution that would officially recognize the 1915-1923 killings as
genocide. But Turkey, whose help the administration needs in the Middle
East, has been lobbying against the measure, warning that it would further
alienate the Turkish public.

Sen. Robert Menendez (D-N.J.), who had used a parliamentary tactic called a
“hold” to block the nomination, said, “We’re obviously pleased that the
administration came to understand that I had no intention of withdrawing my
hold.”

He said he hoped the new nominee would be “somebody who understands the
reality of the Armenian genocide and can express himself or herself when the
time comes for a nomination hearing.”

Lawmakers and Armenian American activists had been watching the nomination
closely after the administration last year removed the previous U.S.
ambassador to Armenia, John M. Evans, for calling the killings genocide.

U.S. officials said they expected Hoagland to be nominated for another post
soon. Bush believes Hoagland “would have done a wonderful job, and thanks
him for his willingness to serve his country,” said Emily A. Lawrimore, a
White House spokeswoman.

The administration did not identify its choice for the next nominee. But
officials said they had not shifted their position on the genocide issue,
raising the possibility that the impasse between the administration and
Congress would continue.

Hoagland has been in the foreign service for two decades. He was ambassador
to Tajikistan, and he has served in Russia, in several posts in central and
South Asia, and in staff posts in Washington. The White House nominated
Hoagland in the fall to replace Evans, who left Armenia in September after
two years on the job.

Rep. Adam Schiff (D-Pasadena) said the administration had erred badly in
adopting a view of the Armenian killings “to mollify an ally.” He said it
was “bad enough” that the administration had evaded the truth on the deaths
of 1.2 million Armenians and “even worse when they fired a career diplomat
for speaking the truth.”

Rep. Frank J. Pallone Jr. (D-N.J.), co-chairman of the Congressional Caucus
on Armenian Issues, said Hoagland not only avoided the word genocide, but
“seems to go out of his way to suggest that genocide never occurred and that
we shouldn’t speak out against it. Somebody like that can’t effectively
serve as ambassador to Armenia; this issue is such an important part of your
task.”

In a recent poll by the Pew Research Center, 9% of Turks held a favorable
view of the U.S., a level considerably lower than in other Muslim areas,
including the Palestinian territories. [paul.richter@latimes.com]
———————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
Please contact us if you no longer wish to receive the AUR    

========================================================
21. WHITE HOUSE BOWS TO SENATE PRESSURE ON NAMING ENVOY
TO ARMENIA, REFUSED TO CALL WWI ERA KILLINGS A GENOCIDE

The Associated Press, Washington, D.C., Friday, August 3, 2007

WASHINGTON-The White House gave in to Democratic objections and on
Friday withdrew the nomination of a career diplomat to be ambassador to
Armenia.

Sen. Robert Menendez, D-N.J., had placed a hold on the nomination of
Richard Hoagland because of Hoagland’s refusal to call the World War
I-era killings of Armenians a genocide.

A hold is a parliamentary privilege accorded to senators that prevents a
nomination from going forward to a confirmation hearing.

Hoagland’s confirmation was also blocked by Senate Democrats in the last
Congress and the Bush administration resubmitted his name in January when
the new Congress convened.

Hoagland’s predecessor, John Evans, reportedly had his tour of duty in
Armenia cut short because, in a social setting, he referred to the killings
as genocide.

In urging the administration to submit another candidate, Menendez said “the
State Department and the Bush administration are just flat-out wrong in
their refusal to recognize the Armenian genocide. It is well past time to
drop the euphemisms, the wink-wink, nod-nod brand of diplomacy that
overlooks heinous atrocities around the world.”

The administration’s move was welcomed by Democratic Rep. Adam Schiff
of California, who represents portions of Southern California’s San Gabriel
Valley-home to a large population of Armenian-Americans.  “The president
was right to withdraw Mr. Hoagland’s nomination,” Schiff said. “During his
confirmation hearings,

Mr. Hoagland continued to deny that the massacre of a million and a half
Armenians between 1915 and 1923 was genocide, thereby compounding the
injury done to the Armenian people and, especially, the few remaining
survivors of the first genocide of the 20th Century. I hope that the president will
soon nominate a new ambassador who will be more forthcoming in discussing

the Armenian genocide.”

The administration has warned that even a congressional debate on the
genocide question could damage relations with Turkey, a moderate Muslim
nation that is a NATO member and an important strategic ally.

Turkey has adamantly denied claims by scholars that its predecessor Ottoman
state killed Armenians in a planned genocide.
————————————————————————————————–
FOOTNOTE:  The Bush Administration last year removed the previous
U.S. ambassador to Armenia, John M. EVnas, for publicly declaring
that the killings were genocide.
————————————————————————————————–
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/03/AR2007080301945.html
————————————————————————————————–
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
22. CULTURAL LEGACY OF THE KYIVAN MOHYLA ACADEMY

Internet Encyclopedia of Ukraine, July 2007 Newsletter
Dr. Marko R. Stech, Project Manager,
Toronto, Ontario, Canada, Tuesday, July 10, 2007

Established in 1632, Kyivan Mohyla Academy developed into the leading
center of higher education in 17th- and 18th-century Ukraine, which exerted
a significant intellectual influence over the entire Orthodox world. In
founding the school, Metropolitan Petro Mohyla’s purpose was to master the
intellectual skills and learning of contemporary Europe and to apply them
to the defense of the Orthodox faith. Taking his most dangerous adversary
as the model, he adopted the organizational structure, the teaching
methods, and the curriculum of the Jesuit schools.

From its beginnings, the academy had close ties with the Cossack starshyna,
which provided it with moral and material support. The school, in turn,
educated the succeeding generation of the service elite. Many of the most
accomplished Ukrainian authors and churchmen of the time served on the
school’s faculty, and some of them played instrumental roles in Peter I’s
educational reforms. Among the academy’s most famous students was
the renown philosopher Hryhorii Skovoroda…

Learn more about the history and cultural legacy of the Kyivan Mohyla
Academy by visiting:
http://www.encyclopediaofukraine.com/featuredentry.asp
or by visiting: http://www.encyclopediaofukraine.com
and searching for such entries as:

KYIVAN MOHYLA ACADEMY. Established by Petro Mohyla through
the merger of the Kyiv Epiphany Brotherhood School (est 1615-16) with
the Kyivan Cave Monastery School (est 1631 by Mohyla), the new school
was conceived by its founder as an academy, ie, an institution of higher
learning offering philosophy and theology courses and supervising a
network of secondary schools.

Completing the Orthodox school system, it was to compete on an
equal footing with Polish academies run by the Jesuits. Fearing such
competition, King Wladyslaw IV Vasa granted the school the status of a mere
college or secondary school, and prohibited it from teaching philosophy and
theology. It was only in 1694 that the Kyivan Mohyla College (Collegium
Kijoviense Mohileanum) was granted the full privileges of an academy, and
only in 1701 that it was recognized officially as an academy by Peter I…

MOHYLA, PETRO, b 10 January 1597 in Moldavia, d 11 January 1647 in Kyiv.
Ukrainian metropolitan, noble, and cultural figure; son of Simeon, hospodar
of Wallachia (1601-2) and Moldavia (1606-7), and the Hungarian princess
Margareta. After his father’s murder in 1607, Mohyla and his mother sought
refuge in Western Ukraine. He was tutored by teachers of the Lviv Dormition
Brotherhood School, and pursued higher education in theology at the
Zamostia Academy and in Netherlands and France.

After his return to Ukraine he entered the military service and fought as an
officer in the Battle of Cecora (1620) and Battle of Khotyn (1621). In
1621-7 he received estates in the Kyiv region and became interested in affairs

of the Ukrainian Orthodox church. In September 1627 a dietine in Zhytomyr
chose Mohyla to succeed thelate Zakhariia Kopystensky as archimandrite of
the influential Kyivan Cave Monastery…

PROKOPOVYCH, TEOFAN, b 18 June 1681 in Kyiv, d 19 September 1736
in Saint Petersburg. Orthodox archbishop, writer, scholar, and philosopher.
He graduated from the Kyivan Mohyla Academy in 1696 and continued his
education in Lithuania, Poland, and at the Saint Athanasius Greek College
in Rome. In 1704 he returned to the Mohyla Academy to teach poetics,
rhetoric, philosophy, and theology. He also served as prefect from 1708 and
rector in 1711-16.

He gained prominence as a writer and as a supporter of
Hetman Ivan Mazepa. His most famous work, Vladimir, is dedicated to the
hetman, whom he depicted as the figure of the Grand Prince of Kyiv.
Following Mazepa’s unsuccessful revolt against Tsar Peter I in 1709,
however, Prokopovych denounced him and expressed his complete
allegiance to Peter…

YAVORSKY, STEFAN, b 1658 in Yavoriv, Galicia, d 27 November 1722 in
Moscow. Orthodox hierarch, theologian, poet, and philosopher. A graduate
of the Kyivan Mohyla College (ca 1684), he completed his education in Polish
Jesuit colleges. After returning to Kyiv in 1687, he renounced Catholicism,
became an Orthodox monk (1689), and taught rhetoric (1690), philosophy
(1691-3), and theology (1693-8) at the Kyivan Mohyla Academy.

He was hegumen of Saint Nicholas’s Monastery in Kyiv from 1697; in 1700 he
was appointed metropolitan of Riazan and Murom in Russia, and on 1 December
1701, exarch in Moscow of the Russian Orthodox church, by Emperor Peter I.
Yavorsky helped Peter to reform the church and education. Eventually his
defense of church autonomy, criticism of Peter, opposition to Teofan
Prokopovych, and intolerance of Protestantism cost him the tsar’s favor…

SKOVORODA, HRYHORII, b 3 December 1722 in Chornukhy, Lubni regiment,
d 9 November 1794 in Pan-Ivanivka, Kharkiv region. Philosopher and poet. He
was educated at the Kyivan Mohyla Academy (1734-53, with two interruptions).

 
He sang in Empress Elizabeth I’s court Kapelle in Saint Petersburg (1741-4),
served as music director at the Russian imperial mission in Tokai, Hungary
(1745-50), and taught poetics at Pereiaslav College (1751).

He resumed his studies at the Kyivan academy, but left after completing only
two years of the four-year theology course to serve as tutor to V. Tomara (
1753-9). He spent the next 10 years in Kharkiv, teaching at Kharkiv College.

After his dismissal from the college he spent the rest of his life wandering
about eastern Ukraine, particularly Slobidska Ukraine. Material support from
friends enabled him to devote himself to reflection and writing…
————————————————————————————————

[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
23. THE CRIMEAN MOUNTAINS AND CRIMEAN RIVIERA
Internet Encyclopedia of Ukraine, August 2007 Newsletter
Dr. Marko R. Stech, Project Manager,
Toronto, Ontario, Canada, Tuesday, August 7, 2007

The exotically picturesque Crimean Mountains lie in the southernmost part
of Ukraine, in the southern part of the Crimean Peninsula. Their highest
range, the Yaila, forms a large, high plateau, which drops suddenly several
hundred meters to the Black Sea coast. The original flora and fauna of the
region are preserved best at the Crimean Game Preserve. In the west the
Crimean Mountains descend directly into the Black Sea. East of Foros the
mountains recede from the sea for a few kilometers and create a sheltered
shore.

 
This narrow (2-12 km) coastal lowland, known as the Crimean southern
shore or the Crimean Riviera, has a subtropical Mediterranean climate and
vegetation. Composed of the low-resistance schist, susceptible to abrasive
activity, the mountains on the Black Sea shore form numerous cliffs and
caves above and below water. Owing to its mild climate, the curative powers
of the sea, salt lakes, and curative muds, and its natural beauty, the
Crimean southern shore constitutes the principal resort and tourist area of
Ukraine and one of the most important ones in Eastern Europe…

Learn more about the Crimean Mountains and Crimean Riviera by visiting:
http://www.encyclopediaofukraine.com/featuredentry.asp
or by visiting:http://www.encyclopediaofukraine.com
and searching for such entries as:

CRIMEAN MOUNTAINS. Young, folded mountains of the Alpine mountain

system located in the southern part of the Crimea. Including the foothills, they
cover one-fifth of the peninsula’s area. They extend for about 150 km from
Sevastopil to Teodosiia and are 40-50 km in width. The Crimean Mountains
consist of three long, parallel ranges, separated by valleys. They descend
gradually towards the north and fall sharply towards the south.
 
The first two ranges starting from the north constitute the foothills; the third
range, called the Yaila (the name is sometimes applied to the Crimean
Mountains as a whole), constitutes the mountains proper. Between the steep
southern slope of the mountains and the Black Sea lies a hilly coastal
strip, the Crimean southern shore…

CRIMEAN SOUTHERN SHORE (also known as the Crimean Riviera). Narrow

(2-12 km) strip of land in the southern Crimea lying between the slope of the
Crimean Mountains and the Black Sea. It stretches for about 150 km from
Foros eastward to Kara-Dag, covering an area of about 600 sq km. Sheltered
from north winds, the shore has a Mediterranean climate and flora.
 
Its agriculture is subtropical. Because of its natural beauty and healthy
climate, this area is heavily populated and famous for its health resorts
and tourism. Visitors greatly outnumber residents: at the beginning of the
1880s about 8,000 people visited Yalta each year; in 1910, 50,000 came to
Yalta; and today over 500,000 visit the shore. Yalta is the main resort
area…

YALTA. A city (2001 pop 81,654) on the southern shore of the Crimea. The
earliest recorded reference to settlement on the site is a reference to a
Greek colony named Yalita (Halita) in the 1st century BC. Control of the
area later passed to Byzantium. By the 12th century Yalta (called Dzhalita)
had become an established port and fishing village. Genoese traders had
control of the town (known as Etalita) in the 13th to 15th centuries, until
they were succeeded by the Turks in 1475.

 
Yalta fell under Russian control in 1783 with the annexation of the Crimea.
At that time the region around it began to be colonized by estate owners.
In 1823 the governor-general of the region, Prince Mikhail Vorontsov,
decided to cultivate Yalta as the major settlement on the Crimean southern
hore. Yalta is nestled in a scenic location between the Black Sea and the
Crimean Mountains. It is particularly noted for its Mediterranean climate…
 
SUDAK. A city (2001 pop 15,500) on the Black Sea coast and a raion center
in the Autonomous Republic of Crimea. A fortress called Sugdei was built
there in 212. At the end of the 8th century it became an important seaport,
which maintained economic ties with Byzantium. In the Kyivan Rus’ documents
it was called Surozh. In the 13th century it became part of the Crimean
Khanate, and in 1365, a Genoese trading colony called Soldaia. The Genoese
built a fortress with 16 turrets and a church, remnants of which have been
preserved. In 1475 Sudak was annexed by Turkey, and in 1783, by Russia.
Since 1954 Sudak has been located within the Ukrainian borders. It was
granted city status in 1982. Most of the inhabitants are employed in the
city’s health resorts…

LIVADIIA. A town smt (2001 pop 1,620) on the Crimean southern shore 3 km
southwest of Yalta and under the administration of the Yalta city council.
In the 18th century there was a Greek settlement at the site, which in the
second half of the 19th century became an estate of the Russian royal
family. After the Revolution of 1917 it was transformed into a health
resort. Some sessions of the Yalta Conference in 1945 were held in
Livadiia.

 
Today the town has a vineyard and a winery, several sanatoriums,
and resorts for victims of heart, lung, and nerve diseases. Livadiia’s most
important architectural monument is the Grand Palace, designed by M.
Krasnov in 1910-11 and surrounded by a park designed by I. Peter in 1834.
Traces of Copper Age and Taurian settlements and a burial place from the
1st century have been found near the town. The ruins of a 10th- to
12th-century castle are nearby…
————————————————————————————————-
The preparation, editing, and display of the IEU entries associated with
the history and cultural legacy of the Kyivan Mohyla Academy was made
possible by a generous donation from ARKADI MULAK-YATSKIVSKY
of Los Angeles, CA, USA.
————————————————————————————————-
ABOUT IEU: Once completed, the Internet Encyclopedia of Ukraine will be
the most comprehensive source of information in English on Ukraine, its
history, people, geography, society, economy, and cultural heritage. With
over 20,000 detailed encyclopedic entries supplemented with thousands of
maps, photographs, illustrations, tables, and other graphic and/or audio
materials, this immense repository of knowledge is designed to present
Ukraine and Ukrainians to the world.

At present, only 12% of the entire planned IEU database is available on the
IEU site. New entries are being edited, updated, and added daily. However,
the successful completion of this ambitious and costly project will be
possible only with the financial aid of the IEU supporters. Become the IEU
supporter and help the CIUS in creating the world’s most authoritative
electronic information resource about Ukraine and Ukrainians!
———————————————————————————————-
Dr. Marko R. Stech, Managing Director, CIUS Press
Project Manager, Internet Encyclopedia of Ukraine
Project Manager, Hrushevsky Translation Project
Canadian Institute of Ukrainian Studies, University of Toronto;

20 Orde Street, Rm. 124 Toronto, Ontario M5T 1N7;
tel: (416) 946-7326; fax: (416) 978-2672
www.utoronto.ca/cius; www.encyclopediaofukraine.com
————————————————————————————————-
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
========================================================
If you are receiving more than one copy of the AUR please contact us.

Please contact us if you no longer wish to receive the AUR.    
You are welcome to send us names for the AUR distribution list.
If you are missing some issues of the AUR please let us know.
========================================================
“ACTION UKRAINE REPORT – AUR”
A Free, Private, Not-For-Profit, Independent, Public Service Newsletter
With major support from The Bleyzer Foundation
Articles are Distributed For Information, Research, Education
Academic, Discussion and Personal Purposes Only
Additional readers are welcome.
========================================================
SigmaBleyzer/The Bleyzer Foundation Economic Reports
“SigmaBleyzer – Where Opportunities Emerge”
 
The SigmaBleyzer Emerging Markets Private Equity Investment Group
and The Bleyzer Foundation offers a comprehensive collection of documents,
reports and presentations published by its business units and organizations.
 
All publications are grouped by categories: Marketing; Economic Country
Reports; Presentations; Ukrainian Equity Guide; Monthly Macroeconomic
Situation Reports (Romania, Bulgaria, Ukraine).
 
You can be on an e-mail distribution list to receive automatically, on a
monthly basis, any or all of the Macroeconomic Situation Reports (Romania,
Bulgaria, Ukraine) by sending an e-mail to mwilliams@SigmaBleyzer.com.
“UKRAINE – A COUNTRY OF NEW OPPORTUNITIES”
========================================================
 TO BE ON OR OFF THE FREE AUR DISTRIBUTION LIST
If you would like to read the ACTION UKRAINE REPORT- AUR,
around three times a week, please send your name, country of residence,
and e-mail contact information to morganw@patriot.net. Information about
your occupation and your interest in Ukraine is also appreciated.
 
If you do not wish to read the ACTION UKRAINE REPORT please
contact us immediately by e-mail to morganw@patriot.net.  If you are
receiving more than one copy please let us know so this can be corrected. 
SPAM & BULK MAIL BLOCKERS ARE A REAL PROBLEM                 
If you do not receive a copy of the AUR it is probably because of a
SPAM OR BULK MAIL BLOCKER maintained by your server or by
yourself on your computer. Spam and bulk mail blockers are set in very
arbitrary and impersonal ways and block out e-mails because of words
found in many news stories or the way the subject line is organized or
the header or who know what.
 
Spam blockers also sometimes reject the AUR for other arbitrary reasons
we have not been able to identify. If you do not receive some of the AUR
numbers please let us know and we will send you the missing issues. Please
make sure the spam blocker used by your server and also the one on your
personal computer, if you use a spam blocker, is set properly to receive
the Action Ukraine Report (AUR).
HOTMAIL.COM AND YAHOO.COM

We are also having serious problems with hotmail and yahoo servers not
delivering the AUR and other such newsletters. If you have an e-mail
address other than hotmail or yahoo it is better to use that one for the AUR.

========================================================
PUBLISHER AND EDITOR – AUR
Mr. E. Morgan Williams, Director, Government Affairs
Washington Office, SigmaBleyzer, The Bleyzer Foundation

Emerging Markets Private Equity Investment Group;
President, U.S.-Ukraine Business Council, Washington;
Founder & Trustee, Holodomor Exhibition & Education Collection
P.O. Box 2607, Washington, D.C. 20013,
Mobile in Kyiv: 8 050 689 2874
mwilliams@SigmaBleyzer.com; www.SigmaBleyzer.com
========================================================
Power Corrupts and Absolute Power Corrupts Absolutely.
========================================================
return to index [Action Ukraine Report (AUR) Monitoring Service]
========================================================
Advertisements

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s