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"UKRAINE REPORT"
In-Depth Ukrainian News and Analysis
"The Art of Ukrainian History, Culture, Arts, Business, Religion,
Sports, Government, and Politics, in Ukraine and Around the World"

"This will enhance the energy independence of Ukraine, and we believe
that it will be a big long-term and even short-term advantage for Ukraine's
oil industry," Herbst said. [article three]

"UKRAINE REPORT" Year 2004, Number 20
U.S.-UKRAINE FOUNDATION (USUF)
www.ArtUkraine.com Information Service (ARTUIS)
morganw@patriot.net, ArtUkraine.com@starpower.net
Kyiv, Ukraine and Washington, D.C., Thursday, February 5, 2004

INDEX OF ARTICLES

1. "UKRAINE IN 2004"
COMMENTARY, By Kempton B. Jenkins, President
Ukraine-U.S. Business Council, Washington, D.C.
Published by "UKRAINE REPORT" 2004, No.20
Washington, D.C., Thursday, February 5, 2004

2. UKRAINE DECIDES TO USE ODESSA-BRODY PIPELINE TO
CARRY OIL TO EUROPE, REJECTS RUSSIAN PROPOSALS
ITAR-TASS, Moscow, Russia, February 4, 2004

3. US AMBASSADOR JOHN HERBST HAILS UKRAINE'S
MOVE ON CASPIAN OIL TRANSIT
Will Enhance Ukraine's Energy Independence
Interfax-Ukraine news agency, Kiev, in Russian, 4 Feb 04
BBC Monitoring Service, UK, in English, Feb 04, 2004

4. KUCHMA ALLIES PUT WEIGHT BEHIND REFORM
Mr. Kuchma's Bloc Joined with the Communist and Socialists Parties
By Tom Warner in Kiev, Financial Times, London, UK, Feb 4, 2004

5. UKRAINIAN CENTRAL ELECTION COMMISSION
NOMINATIONS SOLVE ONE PROBLEM, CAUSE OTHERS
INSIDE UKRAINE Newsletter, February 4, 2004

6. "OUR LIFE" MAGAZINE: "FAMINE IN UKRAINE"
>From the Archives of the Ukrainian National Women's League of America
By E. Morgan Williams, Senior Advisor, U.S.-Ukraine Foundation, (USUF)
Washington, D.C., Thursday, February 5, 2004

7. UKRAINE'S PRESIDENT CALLS ON BUSINESSES TO SHOULDER
MORE OF THE COUNTRY'S SOCIAL BURDENS
AP Worldstream; Kiev, Ukraine, Feb 04, 2004

8. LETTER TO THE AMBASSADOR OF UKRAINE TO THE U.S.
FROM: Roman Wolchuk, Jersey City, New Jersey, January 19, 2004

9. ASSISTANCE TO ORPHANAGES CONTINUES IN UKRAINE
Cooperative Program of the UOC of the USA and the CCRF
Ukrainian Orthodox Church of the USA
South Bound Brook, New Jersey, February 3, 2004

10. UKRAINIAN DONBASS-DUFERCO CONSORTIUM TO MAKE
HUGE INVESTMENT IN HUNGARIAN STEEL WORKS
Duna TV satellite service, Budapest, in Hungarian. 4 Feb 04
BBC Monitoring Service, UK, in English, Feb 04, 2004

11. UKRAINIAN PRESIDENT KUCHMA REAFFIRMS UKRAINE'S
EUROPEAN INTEGRATION COURSE
ITAR-TASS news agency, Moscow, in Russian, 4 Feb 04
BBC Monitoring Service, UK, in English, Feb 04, 2004

12.BARTHOLOMEW I OPPOSES A GREEK-CATHOLIC PATRIARCHATE
IN UKRAINE, Orthodox Warns Pope of Break in Ecumenical Ties
ZENIT News Service, Rome, Italy, February 4, 2004
=========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER ONE
=========================================================
1. "UKRAINE IN 2004"

COMMENTARY, By Kempton B. Jenkins, President
Ukraine-U.S. Business Council, Washington, D.C.
Published by "UKRAINE REPORT" 2004, No.20
Washington, D.C., Thursday, February 5, 2004

As we turn the corner into 2004, Ukraine's dynamic economic growth
shows no sign of slowing. International financial institutions describe
Ukraine's economic progress in 2003 as "the best in the world." At the
same time, 2004 is a presidential year in Ukraine as it is in the U.S.

Uncertainty about the prospects, of the electoral process in Ukraine does
threaten to chill the dramatic economic progress in Ukraine. Above all,
international business interests look to confirm progress in Ukraine's
movement into the global market economy and its political independence
and stability.

2003 was the best year in independent Ukraine's history for economic growth:

GDP grew at 8.5%;
Industrial production grew 15.8%;
Machine tool production was up 34%;
Food industry, reflecting the growth in household income, rose 21%;
Steel exports have grown dramatically, principally due to export
markets in China.

Agricultural performance suffered from two consecutive severe winters.
While vegetable, potatoes and sunflower production experienced a robust
year, grain production recovered much more slowly. The assumption is that
Ukraine's rich grain sector will recover this year, and agriculture offers a
key sector for additional growth in 2004.

Our previous concern about the decision by Ukrainian officials to arrest
Deputy Prime Minister Kozachenko for alleged corruption has been rekindled
by a District Court decision to reopen the investigations this week.
Kozachenko was an unusually successful champion of reforms in agriculture
and is universally highly regarded in Western agricultural circles.

A recent order by the Government reflecting concern of dramatic increases
in grain prices following the bad harvests of 2002-03, has raised questions
about agricultural market reforms. We are assured this action at this point
is more of a contingency effort than a final decision. We are hopeful that
this is not a step backward.

We look forward to continued growth in 2004. Furthermore, rather strained
ties between Kyiv and Washington over the past two years seem to have
passed. Today Ukraine is an important ally for the U.S. in Iraq.

At the same time, international and domestic businesses are viewing the
uncertainty about the Presidential elections. Some investments are on hold
and businesses are tending to pause rather than move aggressively to take
advantage of economic growth.

It would be inappropriate interference in Ukraine's internal affairs to
express a choice - either by foreign investors or foreign governments.
However, I believe it is fair to say that most believe that an orderly
"passing of the torch" to the next generation would produce great respect
and confidence in Ukraine and would accelerate business decisions to
engage in Ukraine's dramatic growth.

Meanwhile, US business is hopeful that the US agreement will at last act to
remove from constrains of the Jackson-Vanik amendment and recognize
Ukraine as a market economy country.

That is the challenge in 2004. We hope that history will be able to view
Ukraine as having made a great step forward this year. (END) (ARTUIS)
========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER TWO
Daily News Gallery: http://www.artukraine.com/newsgallery.htm
========================================================
2. UKRAINE DECIDES TO USE ODESSA-BRODY PIPELINE TO
CARRY OIL TO EUROPE, REJECTS RUSSIAN PROPOSALS

ITAR-TASS, Moscow, Russia, February 4, 2004

KIEV, February 4 (Itar-Tass) -- Ukraine has rejected Russian oil companies'
proposals for using the Odessa-Brody pipeline in the reverse mode.

Ukrainian Deputy Prime Minister Andrei Klyuyev said after the Cabinet's
meeting on Wednesday an unambiguous decision had been made to transport
crude from Odessa to Brody. At the same time he did not rule out the
possibility of a long-term agreement (for fifteen years) with Russia on oil
transit through Ukraine.

The pipeline had been conceived as the key element of a Eurasian oil
transport corridor to carry Caspian crude to Europe. The European Union,
the United States, Kazakhstan and Azerbaijan want the pipeline to be used
as originally expected.

Russia has suggested reversing oil traffic in the pipeline. In exchange it
has offered guarantees it will provide crude oil to fill the pipeline. The
United States has declared the intention to help, too. The Odessa-Brody
pipeline has been idle since 2002, as there is no crude oil to transport.

Ukraine's commissioner for the development of the Eurasian oil transport
corridor, Alexander Todiychyuk has told Tass the U.S. company
Chevron-Texaco has presented its proposal for using the pipeline to the
Ukrainian government. Chevron-Texaco is prepared to provide an annual
six million tonnes of oil a year to be moved via the Odessa-Brody pipeline
to refineries in Germany.

"The amount of Caspian crude to be pumped through the pipeline this year
will depend on the government's decision," Todiychyuk said. The reverse mode
of operation would allow Russia to increase oil export by nine million
tonnes a year, deputy president of the Russian pipeline company Transneft,
Sergei Grigoriev told Tass. (END)(ARTUIS)
=========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER THREE
=========================================================
3. US AMBASSADOR JOHN HERBST HAILS UKRAINE'S
MOVE ON CASPIAN OIL TRANSIT
Will Enhance Ukraine's Energy Independence

Interfax-Ukraine news agency, Kiev, in Russian, 4 Feb 04
BBC Monitoring Service, UK, in English, Feb 04, 2004

Kiev, 4 February: The Ukrainian government's decision to use the
Odessa-Brody oil pipeline in its original direction [from Odessa to Brody]
to transport Caspian oil should be welcomed because it will enhance
Ukraine's energy independence, the US ambassador to Ukraine, John Herbst,
told journalists today.

"This will enhance the energy independence of Ukraine, and we believe that
it will be a big long-term and even short-term advantage for Ukraine's oil
industry," Herbst said. (END) (ARTUIS)
=========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER FOUR
Build Ukraine Gallery: http://www.artukraine.com/buildukraine/index.htm
=========================================================
4. KUCHMA ALLIES PUT WEIGHT BEHIND REFORM
Mr. Kuchma's Bloc Joined with the Communist and Socialists Parties

By Tom Warner in Kiev, Financial Times, London, UK, Feb 4, 2004

The Ukrainian parliament gave preliminary approval yesterday for a
constitutional reform that would shift power to the prime minister in
advance of a presidential election in October.

An extraordinary session of parliament was called after a meeting on Monday
between parliamentary leaders and Leonid Kuchma, Ukrainian president,
who is nearing the end of his second term and is pushing for reforms that
would protect his power base.

Lasting less than an hour, Mr Kuchma's bloc joined with the parliamentary
Communist and Socialist parties to endorse the draft after a brief scuffle
with supporters of Viktor Yushchenko, opposition leader and a former prime
minister. Mr Yushchenko is thought to have the best chance of succeeding Mr
Kuchma if the constitution is not changed. As the vote was held, Mr
Yushchenko's opposition supporters threw pages of the draft at the speaker's
desk.

The vote came despite efforts last week by the European Union to get
Ukraine's leaders to postpone change until after the election. Hanne
Severinsen, a Danish parliamentarian who monitors Ukraine for the Council
of Europe, said she was trying to clarify what had been adopted.

The draft endorsed yesterday by 304 of the parliament's members - four more
than the two-thirds majority required to adopt constitutional amendments -
would turn the October election into a minor event by reducing the
presidency to a largely ceremonial role. The president's main powers would
be to veto laws, subject to an override by two-thirds of parliament, and to
nominate military, security and law-enforcement chiefs, subject to
parliament's approval.

The prime minister and his cabinet, who would be appointed by parliament,
would take over most executive powers. That would ensure that Mr Kuchma's
allies, who hold a majority in parliament, kept power until the next
parliamentary election in 2006.

Earlier drafts called for the president to be elected by parliament starting
in 2006 - rather than by universal suffrage. That provision was removed in
yesterday's vote in favour of continued direct presidential elections. This
compromise convinced the Socialists, who had been allied to Mr Yushchenko,
to switch sides.

"The constitutional reform is unavoidable. It will be done," Mikhail Dobkin,
a member of Mr Kuchma's bloc said after the vote.

Yulia Tymoshenko, an opposition leader, accused Mr Kuchma of planning to
stay in power by moving into the prime minister's job. Other opposition
members challenged the legality of the extraordinary session which has
allowed parliament to vote on the amendments at any time up to July.
=========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER FIVE
=========================================================
5. UKRAINIAN CENTRAL ELECTION COMMISSION
NOMINATIONS SOLVE ONE PROBLEM, CAUSE OTHERS

INSIDE UKRAINE Newsletter, February 4, 2004

KYIV - President Leonid D. Kuchma has finally responded to pressure coming
from the parliament, the Council of Europe and a court suit, all pushing the
president to appoint new members of the Central Election Commission,
something that the president had neglected for some time. On Monday, he sent
to the parliament nominations of 12 new members that would, if approved,
bring the CEC up to its full strength of 15 members.

However, the nominations present a number of problems.

First, they are technically illegal since the law on the Central Election
Commission directs that no more than five members of the commission be
appointed each year. The law as originally passed assumed that the president
would appoint new members as the terms of old members expired, something the
had steadfastly refused to do.

Amendments to the CEC law do not require a constitutional change so only a
vote of 226 parliament members would be required to change the law to allow
approval of the president's list as submitted.

However, even if the CEC law was amended, the likelihood of getting quick
parliamentary approval of the nominations is considered unlikely since the
president's nominations are all pro-presidential supporters including two
members who not long ago left the Communist Party.

Further, the nomination of Serhiy Kyvalov, the head of the Supreme Council
of Justice, Ukraine's equivalent of a bar association, is destined to be
even more controversial than some of the others. Last year Kyvalov
introduced a draft bill in the parliament that would have given absolute
protection from prosecution for both Kuchma and his family after the end of
his term of office. The bill, although never even brought up for debate,
still rankles many in the opposition. Yet, parliament insiders claim that
Kyvalov is considered the most likely person to eventually be named CEC
chairman. (END) (ARTUIS)
=======================================================
UKRAINE REPORT-2005, No. 20: ARTICLE NUMBER SIX
Genocide Gallery: http://www.artukraine.com/famineart/index.htm
========================================================
6. "OUR LIFE" MAGAZINE: "FAMINE IN UKRAINE"
From the Archives of the Ukrainian National Women's League of America

By E. Morgan Williams, Senior Advisor
U.S.-Ukraine Foundation, (USUF)
Washington, D.C., February 5, 2004

Washington.......The November 2003 edition of the official magazine of the
Ukrainian National Women's League of America (UNWLA), "OUR LIFE" is
a special commemorative issue marking the 70th anniversary of the Great
Famine in Ukraine and is dedicated to the victims of the terrible genocidal
famine called the HOLODOMOR (death by terror, by starvation) in
Ukrainian.

The sixty-five page magazine is totally filled with actual reproductions of
very important documents from the archives of the UNWLA, starting in late
1933, related to the work of the UNWLA and their founding of "The
Emergency Relief Committee for Starving Ukrainians."

One of the first documents shown in the front of the magazine is a copy of
the draft of a letter which was sent to President Franklin D. Roosevelt on
November 21, 1933. The reply to the letter, from the Department of State,
on December 15, 1933, is shown on page 19. The UNWLA sent a
considerable number of emergency letters about the conditions in Ukraine
in late November, 1933. The documents printed in the magazine go until
the end of 1934.

Vera Andrushkiw, a leading Ukrainian-American who is project
director of the USUF's U.S.-Ukraine Community Partnership Project
(CPP) stated, "This is an important publication and the UNWLA is to
be congratulated on the special publication. The magazine should receive
wide distribution around the world."

Copies of the HOLODOMOR SPECIAL ISSUE of "OUR LIFE"
for November 2003, No. 11, Vol. LX, can be purchased from the
UNWLA for US$13.00 mailed within the U.S. and for US$15.00 to
Canada and elsewhere, postage included. Mail your check to: UNWLA,
INC., 203 Second Avenue, New York, NY 10003, Tel: 212-533-4646
unwla@unwla.org.

Complete information about the special issue magazine can be found at the
following link: http://www.unwla.org/news_040204famine_specialissue.html,
=========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER SEVEN
=========================================================
7. UKRAINE'S PRESIDENT CALLS ON BUSINESSES TO SHOULDER
MORE OF THE COUNTRY'S SOCIAL BURDENS

AP Worldstream; Kiev, Ukraine, Feb 04, 2004

KIEV.......Ukraine's president on Wednesday praised years of robust economic
growth, but deplored the major gap between rich and poor in calling on
businesses to shoulder more social welfare costs in this ex-Soviet republic.

President Leonid Kuchma hailed the average gross domestic product growth of
7.2 percent from 2000-2003, fueled by a 15.1 percent increase in industrial
production, an almost 80 percent rise in exports and 94 percent growth in
retail trade. He told a round-table of economists that it is "one of the
best performances in Europe," his office said in a statement.

Kuchma also credited his administration for keeping inflation in check at
about 1.5 percent for the past five years and maintaining a stable currency
despite the 1998 financial meltdown in Russia, Ukraine's largest trading
partner.

However, Kuchma noted that the economic boom had created a wide gap
between haves and have-nots that "long ago exceeded the critical stage."
But apparently referring to the large sell-off of state assets in the late
1990s that has been criticized as rigged to favor a privileged few, Kuchma
said that he firmly opposed launching "a new cycle of property
redistribution"
to correct the situation.

Instead, he said it was necessary for the business sector to assume greater
responsibility for social services. "The time has come to concentrate all
society's economic potential on solving these problems," Kuchma said,
singling out health care and education as the most needy sectors.

Like in Russia, Ukraine's cash-strapped government has struggled to provide
basic medical care for its 48 million citizens since the collapse of the
Soviet Union. Schools across the country also suffer from funding shortages.
(tv/mb) (END) (ARTUIS)
=========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER EIGHT
=========================================================
8. LETTER TO THE AMBASSADOR OF UKRAINE TO THE U.S.

FROM: Roman Wolchuk, Jersey City, New Jersey, January 19, 2004

His Excellency Mykhailo B. Reznik
Ambassador of Ukraine to the United States
3350 M Street, NW
Washington, DC 20007

Dear Ambassador Reznik:

As a citizen of the United States who is of Ukrainian ancestry I am troubled
by political developments in Ukraine, the country which you represent.

The President of Ukraine Leonid Kuchma and his administration have created a
totalitarian regime which does not tolerate the expression of independent
thought and which does not allow its citizens to exercise their
constitutionally guaranteed democratic rights as is practiced in civilized
countries of the world. The lawless acts of the administration are evident
in its complete control of the press and television, its criminal acts
against opposition parties, its use of terror against newspaper publishers
and opposition deputies in the Verkhovna Rada and its systematic policy of
murdering journalists and politicians. The recent attempts to take away
Ukrainian citizens' right to elect a president in a general election is a
shameless trampling of the articles of the Constitution of Ukraine, simply
to keep the present administration, which fears being held accountable for
its criminal acts, in power at all costs.

The economy is in the hands of corrupt presidential oligarchs who care only
about themselves, make deposits in foreign banks and block the development
of a free Ukrainian economy, for which citizens' rights are a prerequisite.
The "2004 Index of Economic Freedom," published annually by the Heritage
Foundation and "The Wall Street Journal" (WSJ, Jan.9, 2004. p.10),
classified Ukraine as "mostly unfree" and put it in 117th place, below that
of Kyrgyzstan (103), Gabon (111), and Russia (114). Meanwhile, Ukraine's
neighbors, such a Slovakia (35), Hungary (42) and Poland (56) annually
improve in this measure.

Mykola Ryabchuk, one of Ukraine's leading journalists, has written about the
"inexorable submergence of Ukraine in the sticky Eurasian morass" (see
attachment). The American press (in commentaries in the "Washington Post"
and other newspapers) has noted the growing tendency in Ukraine of
"returning to the USSR," a tendency fully supported by Russia.

As Mr. Ryabchuk writes, the Ukrainian society, trained in dependency and
submission by the previous regime, is in large measure responsible for this
state of affairs. Even so, there is no shortage of people in Ukraine who
courageously oppose evil. One of them, the Ukrainian Ambassador to Romania
A. Buteyko recently resigned from his post protesting what he considers
treason by Ukraine's government, which risks its own sovereignty in
promoting Russia's interests above those of Ukraine.

A similar act of protest taken by you or other members of the diplomatic
corps or government would put an end to the catastrophic course of domestic
and foreign politics of Ukraine. Such a step would raise Ukraine's prestige
in the U.S. and throughout the free world and help put her back on the path
of democratic development, with her face toward the West.

With respect,
/s/
Roman Wolchuk
----------------------------------------------------------------------------
NOTE: Roman Wolchuk is a consulting engineer in Jersey City, NJ. He was
born in Ukraine and received his early education in Lviv. He came to the US
in the late 1940's. He started his career in 1950 in New York and has been
a practicing engineer, researcher, author of papers and handbooks and a
lecturer. He has made a significant contribution to engineering progress in
the field of steel bridges.

Mr. Wolchuk has recently completed the first volume of a two volume set of
books of his memoirs. The first book is about pre-war Lviv and war-time
Vienna. This book was published in Ukrainian in Kyiv in 2003. The second
volume about his memoirs in post-war Austria and Germany will be published
in Kyiv this month.
=========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER NINE
Support Ukraine Gallery: http://www.artukraine.com/uasupport/index.htm
=========================================================
9. ASSISTANCE TO ORPHANAGES CONTINUES IN UKRAINE
Cooperative Program of the UOC of the USA and the CCRF

Ukrainian Orthodox Church of the USA
South Bound Brook, New Jersey, February 3, 2004

The Ukrainian Orthodox Church of the USA (UOC of the USA) has
conducted a cooperative program of assistance with the Children of Chornobyl
Relief Fund (CCRF) in adopting two orphanages in Zaluchia and Znamianka,
Ukraine, for the past three years. The CCRF is widely acknowledged in
Ukraine by governmental and charitable organizations and here in the
Ukrainian Diaspora as one of the most effective and trustworthy aide
organizations operating in and for the benefit of Ukraine.

Founders of the CCRF, Dr. Zenon and Nadia Matkiwsky, along with Ukraine
In-Country Director for CCRF activity, Olena Welhasch, met recently with
Archbishop Antony and Consistory Treasurer, Emil Skocypec, to report on the
progress made to the orphanages over the past year with the grants in aid
provided by the UOC of the USA. .

The Church has been committed to the orphanage adoption program for at
least five years and judging by the support we have received, that
commitment will go on for many years to come - particularly when the young
college and high school students are eager to travel to Ukraine to work with
the children on summer vacation missions organized by Church's Offices of
Youth and Young Adult Ministry and Missions and Christian Charity. During
the meeting in mid-January the UOC of the USA made another grant totaling
$23,000.

As in the past a principal part of the effort has been concentrated on
renovating the buildings where the children God has given to us live. In
2004 approximately a quarter of the grant will go towards replacing the
windows in the aging buildings. The largest portion of the grant, however,
will go to significant programs to improve the quality of the children's
mental and physical life.

The funds from UOC of the USA will equip a physical therapy room in the
Zaluchia Orphanage and staff it with two full-time physical therapists.
Further, funds will be used to sponsor three full-time teachers with
training in relating to children with special needs and also two liaison
personnel who will serve under the auspices of the CCRF Kyiv office to
provide better observation of how our programs are progressing.

The UOC of the USA expresses its deepest gratitude to all those who have
contributed thus far to this work in Christ's Name. (END)(ARTUIS)
----------------------------------------------------------------------------
For further information please contact Hieromonk Daniel, Director, Office
of Public Relations, Ukrainian Orthodox Church of the USA, P.O. Box
495, South Bound Brook, NJ 08880, 732 356 0090, FatherVZ@aol.com,
http://www.ukrainianorthodoxchurchusa.org.
==========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER TEN
Current Events Gallery: http://www.artukraine.com/events/index.htm
==========================================================
10. UKRAINIAN DONBASS-DUFERCO CONSORTIUM TO MAKE
HUGE INVESTMENT IN HUNGARIAN STEEL WORKS

Duna TV satellite service, Budapest, in Hungarian. 4 Feb 04
BBC Monitoring Service, UK, in English, Feb 04, 2004

[Presenter] The political conditions are already in place, now only the
economic situation has to improve to prevent Hungarians in Sub-Carpathia [in
western Ukraine] from emigrating from its land of birth, Yurii Mushka,
Ukrainian ambassador in Budapest, has said. The diplomat said it was also
unprecedented that the Ukrainian-Swiss consortium Donbass-Duferco would
take part in the privatization of Dunaferr [major Hungarian steel works].

[Reporter] The fact that Hungary will become an EU member from May will
also move Ukraine closer to Europe, the ambassador said. He said this was a
new situation which must be used. He said it appeared that no new wall would
be erected; the borders could still be crossed. Although the asymmetric visa
system - in which Hungarian citizens do not have to get visas, while
Ukrainian citizens will need visas, although in a short time - is not based
on reciprocity, it is a sensible decision, the ambassador said.

He added that it was a good news that the Beregszasz [Beregovo, in western
Ukraine] Theatre would be opened on its 10th anniversary, and its
reconstruction would be completed by the end of the year, therefore there
was no obstacle to a further development of cultural and language autonomy
of the Hungarian minority, and other minorities.

According to Yurii Mushka, if the privatization deal of Dunaferr is
concluded, the Donbass-Duferco consortium will invest more in one company
in Hungary than Hungary's total investment in Ukraine. [Mushka, in Hungarian
without any accent] To us, this is a positive process, which I fully
support, naturally. I hope that the talks will be completed and the
privatization deal will be concluded in the coming days.

[Reporter] As is known, in December APV Rt [State Privatization and Assets
Management Joint-Stock Company] declared the bid for Dunaferr's
privatization valid and successful. Its winner is the Ukrainian-Swiss
consortium, which pledged to keep the current number of staff for five
years. The total value of the transaction, including the purchase price and
pledges for investment, reaches 100bn forints [one dollar is about 210
forints]. (END) (ARTUIS)
==========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER ELEVEN
==========================================================
11. UKRAINIAN PRESIDENT KUCHMA REAFFIRMS UKRAINE'S
EUROPEAN INTEGRATION COURSE

ITAR-TASS news agency, Moscow, in Russian, 4 Feb 04
BBC Monitoring Service, UK, in English, Feb 04, 2004

Kiev, 4 February: Ukrainian President Leonid Kuchma today reaffirmed
Ukraine's European integration course. "European integration remains the
strategic goal of Ukraine," he said, addressing the participants in the
"round-table" discussion "The economy of Ukraine in 2000-03: the
establishment of an investment model of economic growth".

"I am sure that the future European home will not be comfortable unless
Ukraine is in it," the president said. Kuchma stressed the importance of
achieving European standards by Ukraine in living conditions, the
democratization of society, the freedom of speech and economic achievements.

"Politicking is not needed. Let's work on the economy and consider
everything from the point of view of economic interests," Kuchma said.
==========================================================
UKRAINE REPORT-2004, No. 20: ARTICLE NUMBER TWELVE
Historical Gallery: http://www.artukraine.com/histgallery.htm
==========================================================
12. BARTHOLOMEW I OPPOSES A GREEK-CATHOLIC PATRIARCHATE
IN UKRAINE, Orthodox Warns Pope of Break in Ecumenical Ties

ZENIT News Service, Rome, Italy, February 4, 2004

ISTANBUL, Turkey, FEB. 4, 2004 (Zenit.org).- Orthodox Patriarch
Bartholomew I of Constantinople has asked John Paul II not to establish
a Greek-Catholic patriarchate in Kiev, Ukraine, warning him of the risk
of a break in ecumenical relations.

The patriarch's request came in a letter, published in Greek in the
patriarchate's Web page, which discusses a document presented by Cardinal
Walter Kasper, president of the Pontifical Council for Promoting Christian
Unity, to Alexy II, patriarch of Moscow and All Russia. Alexy II sent the
document, which alludes to the eventual recognition of a patriarchal title
for the Ukrainian Greek-Catholics, to Orthodox patriarchs.

In the letter dated Nov. 29, Bartholomew I rejects Cardinal Kasper's
document, labeling it "erroneous, confused, unacceptable, provocative," and
after a lengthy refutation of the cardinal's historical-canonical document,
warns about the possible negative consequences of an eventual recognition
of a patriarchal title for the Greek-Catholic Church in Ukraine.

"[It] will cause strong reactions on the part of all the Orthodox sister
Churches and will put a stop to attempts to continue the theological
dialogue between the Catholic Church and Orthodox Churches," the Italian
magazine 30 Giorni reported. In his letter to the Pope, Bartholomew I said
there is a danger "of returning to the climate of hostility that reigned up
to a few decades ago."

"Therefore," the patriarch wrote, "it is necessary that you assure the
Ukrainian people and all the Orthodox Churches with persuasive force that
you have no intention of initiating the institution of the Greek-Catholic
Patriarchate in Ukraine as Cardinal Kasper's text alludes."

The issue relates to the matter of "Uniatism," a pejorative term applied by
the Orthodox to refer to the Greek-Catholic Churches, such as that of
Ukraine. The latter belongs to the Byzantine tradition -- as do the
Orthodox -- and at the same time is in full communion with the Successor of
Peter. The majority of the population of Ukraine is Orthodox and under the
Russian patriarchate.

Recognition of the primacy of Peter is a key point in the discussion between
Eastern-rite Ukrainian Catholics (who number about 5 million) and the
Orthodox.

Recognizing the level of development reached by its Church, the Ukrainian
Greek-Catholic Synod's plenary assembly, held in Kiev in July 2002, asked
the Holy Father to sanction this process by granting it the patriarchal
title.

According to the conciliar decree "Orientalium Ecclesiarum" on the Catholic
Eastern Churches, a pope has the faculty to recognize on his own initiative
the patriarchal rank of a Church without having to submit this recognition
to the consensus of other ecclesial authorities.

The Catholic-Orthodox dialogue has two events planned: Cardinal Kasper is
scheduled to meet with Alexy II in two weeks; and Bartholomew I recently
said he would visit the Pope on the feast of Sts. Peter and Paul, in June.
----------------------------------------------------------------------------
EDITOR'S NOTE: It does not seem that the basic and very important
democratic and fundamental human principles of freedom of religion and
the separation of church and state were taught at any of the schools these
religious leaders attended. Certainly not any that Alexy II attended in the
Soviet Union.
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