"THE ACTION UKRAINE REPORT"
In-Depth Ukrainian News, Analysis, and Commentary

"The Art of Ukrainian History, Culture, Arts, Business, Religion,
Sports, Government, and Politics, in Ukraine and Around the World"

"THE ACTION UKRAINE REPORT" Year 04, Number 84
Action Ukraine Coalition (AUC), Washington, D.C.
Ukrainian Federation of America (UFA), Huntingdon Valley, PA
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C.; Kyiv, Ukraine, FRIDAY, May 21, 2004

INDEX OF ARTICLES
"Major International News Headlines and Articles"

1.URGING GOVERNMENT OF UKRAINE TO ENSURE A DEMOCRATIC,
TRANSPARENT, AND FAIR ELECTION PROCESS
"Dear Colleague Letter" from Senator Ben Nighthorse Campbell (R-CO)
U.S. Senate, Washington, D.C., Tuesday, May 18, 2004

2.UPCOMING UKRAINE PRESIDENTIAL ELECTIONS CONCERN THE U.S
Action Item: Ukrainian-American Call for Support of S. Con. Res. 106
By Ihor Gawdiak, President
Ukrainian American Coordinating Council (UACC)
Washington, D. C., Thursday, May 20, 2004

3. UKRAINIANS VERY SCEPTICAL ABOUT FAIRNESS OF UPCOMING
PRESIDENTIAL ELECTION
38% believe upcoming presidential election will be rigged
Interfax-Ukraine news agency, Kiev, Ukraine, in Russian, 19 May 04
BBC Monitoring Service, UK, in English, Thursday, May 19, 2004

4. US AMBASSADOR IN UKRAINE SPEAKS ON ELECTIONS, OIL PROJECT
Ukrayinska Pravda web site, Kiev, Ukraine, in Ukrainian 18 May 04
BBC Monitoring Service, UK, in English, United Kingdom; May 19, 2004

5. WARNING TO UKRAINE
The U.S. is trying to pre-empt fraud in the October presidential election
Embassy Row Column: By James Morrison
The Washington Times, Washington, D.C., Thursday, May 20, 2004

6. EU CLOSE TO RECOGNIZING UKRAINE AS MARKET ECONOMY
UNIAN news agency, Kiev, Ukraine, in Ukrainian, 20 May 04
BBC Monitoring Service, UK, in English, Thursday, May 20, 2004

7.UKRAINIAN DIPLOMAT'S DISMISSAL A BLOW TO EUROPEAN COURSE
"The Last Euroromantic. The First Eurorealist?"
ANALYSIS: By Serhiy Solodkyy
Den, Kiev, Ukraine, in Ukrainian 18 May 04; p 2
BBC Monitoring Service, UK, in English, Wednesday, May 19, 2004

8. UKRAINE: "CHALYY RESIGNED. END OF EUROPEAN INTEGRATION?"
ANALYSIS: By Leonid Amchuk
Ukrayinska Pravda web site, Kiev, Ukraine, in Ukrainian 17 May 04
BBC Monitoring Service, UK, in English, Wednesday, May 19, 2004

9. FORMER U.S. PRESIDENT GEORGE BUSH SR. TO VISIT KYIV,
AT VIKTOR PINCHUK'S INVITATION
By Paul Miazga, Kyiv Post Staff Writer
Kyiv, Post, Kyiv, Ukraine, Thursday, May 20, 2004

10. POLISH STEEL MILLS MAY FACE SUPPLY CRISIS IF SUPPLIES
OF UKRAINIAN IRON ORE ARE CUT BACK
Polish News Bulletin, Warsaw, Poland, Friday, May 21, 2004

11. OPINION POLLS SHOW MOST UKRAINIANS SUPPORT
WITHDRAWAL OF TROOPS FROM IRAQ
72% Support Withdrawal From Iraq
Associated Press Worldstream, Kyiv, Ukraine, Thursday, May 20, 2004

12. UKRAINE WON'T WITHDRAW TROOPS FROM IRAQ
Associated Press Online, Kiev, Ukraine, Wednesday, May 19, 2004

13. UKRAINE STILL WANTS TO TAKE PART IN IRAQ RECONSTRUCTION
Interfax-Ukraine, Kyiv, Ukraine, Friday, May 21, 2004

14. UKRAINE OPPOSITION FIGURE TYMOSHENKO FACES NEW PROBE
TV 5 Kanal, Kiev, Ukraine, in Ukrainian, 20 May 04
BBC Monitoring Service, UK, in English, Thursday, May 20, 2004
=========================================================
THE ACTION UKRAINE REPORT-04, No. 84 ARTICLE NUMBER ONE
Politics and Governance, Building a Strong, Democratic Ukraine
http://www.artukraine.com/buildukraine/index.htm
=========================================================
1. URGING GOVERNMENT OF UKRAINE TO ENSURE A DEMOCRATIC,
TRANSPARENT, AND FAIR ELECTION PROCESS

"Dear Colleague Letter" from Senator Ben Nighthorse Campbell (R-CO)
U.S. Senate, Washington, D.C., Tuesday, May 18, 2004

Dear Colleague:

Last week, I introduced S. Con. Res. 106 urging the Government of Ukraine to
ensure a democratic, transparent, and fair election process for the upcoming
presidential election. The resolution outlines measures the Ukrainian
authorities need to take - consistent with their own law and international
agreements - for a free, fair, open and transparent election process.
Senators Dodd and Biden are original cosponsors.

Ukraine - a country of 48 million people -- remains at a crossroads.
Unfortunately, Ukraine's pre-election environment has already been decidedly
problematic and of increasing concern to the United States and the
international community. During the course of this year I have shared
specific concerns with Senate colleagues, particularly in terms of the
media.

The resolution introduced today focuses squarely on key problem areas,
including increasing control and manipulation of the media and attempts by
national authorities to limit access to international broadcasting,
including Radio Liberty and Voice of America. Among other concerns are the
blatant obstacles to free assembly and a free and fair political campaign as
well as substantial irregularities in several recent elections.

The resolution underscores that an election process and the establishment
of a genuinely democratic political system consistent with Ukraine's
freely-undertaken OSCE commitments is a prerequisite for Ukraine's full
integration into the Western community of nations as an equal member,
including into NATO. The October elections will be vital in determining
Ukraine's course for years to come and they present the Ukrainian
authorities with a real opportunity to demonstrate their commitment to
OSCE principles and values.

Ukraine's October presidential elections should be a watershed for the
future direction of that country of great potential. It is abundantly clear
that a small clique have a vested interest in perpetuating the outmoded
status quo. Ukrainian authorities need to radically improve the election
environment if there is to be hope for these elections to meet OSCE
standards.

The question is whether their perceived self-interest will trump the
interest of the people of Ukraine. Having restored the independence of
their proud land, the Ukrainian people deserve an opportunity to overcome
the legacy of the past, and consolidate democracy, human rights and the
rule of law.

By urging the Ukrainian authorities to abide by their freely undertaken OSCE
commitments on democratic elections, this resolution stresses our
commitment to the Ukrainian people and the goal of Ukraine's integration
into the Western community of nations.

If you are interested in becoming a cosponsor of the Ukraine elections
resolution, please have your staff contact Orest Deychakiwsky
(orest.deychak@mail.house.gov) of the Helsinki Commission at 5-1901.

Sincerely,
/S/
Ben Nighthorse Campbell, U.S.S.
Co-Chairman
----------------------------------------------------------------------------
For further information about Ukraine Elections resolutions in House and
Senate, see Helsinki Commission website: www.csce.gov. Look under
Publications on front page, or click on map of Ukraine for Ukraine page.
=========================================================
THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER TWO
The Genocidal Famine in Ukraine 1932-1933, HOLODOMOR
Genocide Gallery: http://www.artukraine.com/famineart/index.htm
=========================================================
2. UPCOMING UKRAINE PRESIDENTIAL ELECTIONS CONCERN THE U.S
Action Item: Ukrainian-American Call for Support of S. Con. Res. 106

By Ihor Gawdiak, President
Ukrainian American Coordinating Council (UACC)
Washington, D. C., Thursday, May 20, 2004

WASHINGTON, D. C. - The October presidential election in Ukraine is critical
to the future of Ukraine, US-Ukrainian relations, and to the very security
of Europe. It is also crucial that all presidential candidates be given
equal coverage in the media and full unhindered opportunity to present
themselves before the Ukrainian electorate during the election campaign.

Ukrainian Americans and their friends and supporters are therefore urged to
call their congressional representatives, both in the House and the Senate,
to become co-sponsors Senate Concurrent Resolution #106, which urges that
the presidential election process in Ukraine be carried out in a
"democratic, transparent and fair" manner.

In the House of Representatives, House International Relations Committee
Chairman Rep. Henry J. Hyde (R-IL) has cosponsored an identically worded
resolution - H. Con.Res.415 - with Helsinki Commission Chairman Rep.
Christopher H. Smith (R-NJ) and Rep. Tom Lantos (D-CA). Helsinki Commission
Co-Chairman Senator Ben Nighthorse Campbell (R-CO) is sponsor of the Senate
resolution which is co-sponsored by Commission Ranking Member Senator
Christopher J. Dodd (D-CT) and Senate Foreign Relations Committee Ranking
Member Senator Joseph R. Biden (D-DE).

Telephone numbers of your Senators and Representatives may be obtained by
calling the Capitol Information Line at (202) 225-3121. Contact information,
including e-mails addresses, can also be found by going online to
www.house.gov and www.senate.gov.

For the text of the resolutions and accompanying statements, see the
Helsinki Commission website - www.csce.gov, or contact Orest Deychakiwsky
at the Commission for more information: orest.deychak@mail.house.gov.
===========================================================
THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER THREE
Check Out the News Media for the Latest News From and About Ukraine
Daily News Gallery: http://www.artukraine.com/newsgallery.htm
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3. UKRAINIANS VERY SCEPTICAL ABOUT FAIRNESS OF UPCOMING
PRESIDENTIAL ELECTION
38% believe upcoming presidential election will be rigged

Interfax-Ukraine news agency, Kiev, Ukraine, in Russian, 19 May 04
BBC Monitoring Service, UK, in English, Thursday, May 19, 2004

KIEV - Thirty-eight per cent of Ukrainians believe that the upcoming
presidential election will be rigged.

This has been shown by a poll conducted by the Democratic Initiatives fund
and the Sotsis centre on 29 April - 6 May. A total of 1,200 adults living in
all regions of Ukraine were polled. The margin of error is no more than 3
per cent.

The poll's results were made public by the Democratic Initiatives' senior
researcher, Iryna Bekeshkina, and Sotsis director Natalya Pohorela in Kiev
today.

The poll revealed that only 14 per cent of Ukrainians hope that the vote
count is fair, another 32 per cent believe that certain irregularities will
take place during the vote count without significantly affecting the
outcome.

If [opposition] Our Ukraine bloc leader Viktor Yushchenko and the Party of
Regions leader, Prime Minister Viktor Yanukovych make it to the run-off,
36.8 per cent of those polled are ready to vote for Yushchenko and 31.4 per
cent for Yanukovych, the poll also showed. Some 12.8 per cent could not
answer the question.

Seventy-three per cent said they are greatly interested in the upcoming
election, 61.5 per cent said they hoped that the election improved the
situation in Ukraine.

Only 9.8 per cent of those polled believe that all presidential candidates
would have equal opportunities during the election campaign. Almost a
quarter (24.5 per cent) believe that favourable conditions will be created
for certain candidates without significantly affecting the outcome. Almost
half of those polled (48.6 per cent) think that the very favourable
conditions created for individual candidates can determine the outcome of
the presidential election. [Passage omitted: percentage of people ready to
complain about various election irregularities] (END)
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THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER FOUR
Major Articles About What is Going on in Ukraine
Current Events Gallery: http://www.artukraine.com/events/index.htm
Become a financial sponsor of The Action Ukraine Program Fund
============================================================
4.US AMBASSADOR IN UKRAINE SPEAKS ON ELECTIONS, OIL PROJECT

Ukrayinska Pravda web site, Kiev, Ukraine, in Ukrainian 18 May 04
BBC Monitoring Service, UK, in English, United Kingdom; May 19, 2004

KIEV - An undemocratic presidential election in October would affect
Ukraine's relations with Washington, US ambassador John Herbst said at
a news conference in Kiev on 18 May. "If the election here is not fair, if
there are complications, this can cause a deterioration in relations between
Ukraine and the US," the Ukrainian web site Ukrayinska Pravda has quoted
the ambassador as saying.

Herbst added, however, that if the vote is fair, relations will not be
affected whatever the outcome. He stressed that the US was not backing
any single candidate in the race.

The US envoy also reiterated Washington's support for the project to carry
Caspian oil via Ukraine's Odessa-Brody pipeline. He said proposals to
reverse the flow of oil in the pipeline and use it to carry Russian crude to
Odessa and then ship it to Europe through the Bosporus would not be in
Ukraine's interest.

"Ukraine wants to be part of Europe and participate in European
institutions. A direct use of the Odessa-Brody pipeline would help this,"
the ambassador was quoted as saying. His statement came after
President Leonid Kuchma voiced doubts in late April about the feasibility
of using Odessa-Brody for Caspian oil transit.

Also on 18 May Ukrayinska Pravda reported that a prominent advocate of the
Odessa-Brody project, the president of the oil transit company Ukrtransnafta
Oleksandr Todiychuk, had submitted a letter of resignation. The web site
quoted Todiychuk's interview with the BBC Ukrainian Service, in which he
rejected President Kuchma's criticism of the project. He said the decision
to resign was prompted by the president's decree to abolish the post of
special representative for the Eurasian oil transit corridor, which
Todiychuk occupied. (END)
============================================================
THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER FIVE
Ukraine's History and the Long Struggle for Independence
Historical Gallery: http://www.artukraine.com/histgallery.htm
============================================================
5. WARNING TO UKRAINE
The U.S. is trying to pre-empt fraud in the October presidential election

Embassy Row: By James Morrison
The Washington Times, Washington, D.C., Thursday, May 20, 2004

The United States is trying to pre-empt fraud in the October presidential
election in Ukraine by warning the former Soviet republic five months early
against voter intimidation or other irregularities.

"If the election is not free, if there are complications, then relations
between Ukraine and the United States could deteriorate," U.S. Ambassador
John Herbst told students in the Ukrainian capital Kiev yesterday.

Viktor Yushchenko, the pro-Western opposition leader, is the current
front-runner in the Oct. 31 election against Prime Minister Viktor
Yanukovich, an ally of President Leonid Kuchma.

The United States and other Western governments have criticized Mr. Kuchma
for repressive measures against political opponents. He is stepping down
after 10 years in power. The Bush administration two years ago accused Mr.
Kuchma of personally approving the sale of an early warning radar system to
Iraqi President Saddam Hussein.

Recently the State Department complained about problems in an April 18
mayoral election in Mukacheve, a city of 120,000 near the border with
Slovakia and Hungary.

"By all accounts, there was manifestly fraudulent manipulation of the voting
results," the department said.

"We have seen a very discouraging pattern of irregularities and fraud in
recent local and parliamentary elections in Ukraine. We hope that such
problems will not characterize the presidential election later this year."

Ukrainian election officials declared Ernest Nusser of the Ukrainian Social
Democratic Party (United) the winner in the mayor's election, but the
opposition Our Ukraine party claimed its candidate, Viktor Baloha, was the
victor. Mr. Kuchma promised an investigation.

"In my view, the struggle for power is dimming the common sense of
politicians," Mr. Kuchma said at a press conference a week after the
election.

Western observers cited widespread fraud and reports of violence against
members of the Ukrainian Parliament who monitored the vote. The Council of
Europe called the contest in Mukacheve an "unfortunate dress rehearsal for
the upcoming presidential election." The council complained about "two main
interest groups waging a bitter fight for power and, for the most part,
forgetting about local issues." (END)
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THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER SIX
The Story of Ukraine's Long and Rich Culture
Ukrainian Culture Gallery: http://www.ArtUkraine.com/cultgallery.htm
============================================================
6. EU CLOSE TO RECOGNIZING UKRAINE AS MARKET ECONOMY

UNIAN news agency, Kiev, Ukraine, in Ukrainian, 20 May 04
BBC Monitoring Service, UK, in English, Thursday, May 20, 2004

KIEV - The European Union is ready to grant Ukraine market-economy status
after Kiev has sorted out the problems of pricing policy and the bankruptcy
law.

Agreement to this effect was reached between Ukrainian Prime Minister Viktor
Yanukovych and EU leaders during Yanukovych's visit to Brussels, UNIAN has
learnt from the government press service.

According to the press release, Yanukovych is convinced that Ukraine will
manage to settle these issues before the EU summit scheduled for 8 July in
The Hague.

"Ukraine will manage to solve them in time," the press service quotes
Yanukovych as saying.

Top EU officials have confirmed their readiness to grant Ukraine
market-economy status at the summit once Ukraine meets the aforementioned
requirements. (END)
============================================================
THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER SEVEN
The Story of Ukraine's Long and Rich Culture
Ukrainian Culture Gallery: http://www.ArtUkraine.com/cultgallery.htm
============================================================
7. UKRAINIAN DIPLOMAT'S DISMISSAL A BLOW TO EUROPEAN COURSE
"The Last Euroromantic. The First Eurorealist?"

ANALYSIS: By Serhiy Solodkyy
Den, Kiev, Ukraine, in Ukrainian 18 May 04; p 2
BBC Monitoring Service, UK, in English, May 19, 2004

The recent resignation of First Deputy Foreign Minister Oleksandr Chalyy is
a blow to Ukraine's aspirations of European integration, although there is
more than meets the eye to his dismissal, an influential Ukrainian daily has
said. Chalyy believed it was nonsensical for Ukraine to try to integrate
into the Single Economic Space with Russia and the European Union at the
same time, and he was one of the few members of the government capable of
standing up to Russian ambassador Viktor Chernomyrdin, the paper said.

The following is the text of the article by Serhiy Solodkyy headlined "The
last Euroromantic. The first Eurorealist?" and published in the Ukrainian
newspaper Den on 18 May; sub-headings have been inserted editorially:

Ukraine has been left without its main European integrator. Last Friday [14
May] a statement was signed on the resignation of First Deputy Foreign
Minister Oleksandr Chalyy. Officially, the decree says he has moved on to
"do research", but unofficially people are talking about all sorts of other
reasons.

"EUROROMATIC TO "EUROREALIST"

In the past few months a number of experts have pointed more than once to
certain changes in Chalyy's perception of Ukraine's integration into Europe.
One of the best ones over the past few weeks was when he said we needed to
move from "Euroromanticism" to "Eurorealism". Chalyy explained such
fundamental changes mainly as a result of approaches and "signals" from the
European Union towards Kiev. On the one hand, Brussels is conducting much
livelier talks about developing relations with Russia, but on the other,
European bureaucrats, fearless of any accusations about inconsistency or
incongruity with the basic documents of a "United Europe", are raising
doubts even about Ukraine's long-term prospects of entering the EU.

One should not lose sight of the fact that the former deputy minister's work
in the present government has not been that straightforward. He is one of
the few representatives of the executive branch of power who was able to
enter into a free debate with Russia's ambassador Viktor Chernomyrdin (for
which the latter "labelled" Chalyy with the tag "intransigent"). Two years
ago, when Moscow tried its best to draw Ukraine into the Eurasian Economic
Council, journalists expressed fears that the diplomat would not stay in his
post for long. But he did.

However, his persistence turned out to be weak in comparison with the
efforts of the leadership of our north-eastern neighbour. Soon it was
suggested that Ukraine take part in the Single Economic Space, which is
essentially little different from the Eurasian Economic Council, but Kiev
decided to yield to Moscow's persuasion. Chalyy's reasonable warnings that
two simultaneous integrations were a nonsense did not go down well with the
Ukrainian government.

BRUSSELS NEGATIVE OVER UKRAINE'S BID

The European Union, which was more concerned with the problems of
enlargement, was in no hurry to meet them halfway. Their proposed policy of
"new neighbours" does not correspond in any way to Ukraine's declared
objectives of European integration. The EU is refusing to offer Ukraine
market status, and the Brussels bureaucrats do not even want to hear about
the prospects of associate membership, never mind full-fledged membership.
It would be hard to imagine that given such solid opposition from two sides
(on one side the Eurasian inclinations in Ukraine's corridors of power, and
on the other the bureaucratic "Euro-machine"), that Oleksandr Chalyy would
continue to carry out his duties.

It would not be quite right to speak only about the hand of Moscow or about
submission to Russia (as was, for example, in the case with former minister
[and centre-right MP] Borys Tarasyuk), although, it had something to do with
it of course. It is hardly possible to simply "load everything" on to
Brussels, which through obstinacy and a lack of understanding of the true
consequences of their own dogged stance, is cancelling out the work of those
few people in Ukraine who see their state in a European and Euro-Atlantic
system of coordinates. Rather more strange is the fact that Chalyy did not
even have any significant support in his own state (we are not talking about
the vast majority of experts, journalists and western diplomats). Nor was it
apparent that his immediate boss - the minister Kostyantyn Hryshchenko - had
stood up for his "hero".

UKRAINE'S "SHORTSIGHTED" POLICY

Chalyy's resignation is a symbol of a certain disappointment, and a "double"
disappointment, too. Ukraine's zig-zag and short-sighted running around from
Russia to the European Union over the integration issue was also a
significant factor here. Oleksandr Chalyy made his recent official statement
on the very day of his resignation, last Friday, at the conference
"Ukraine - EU: mutual interests" when the president's decree had still not
been released. He then laid all the stress on Ukraine's integration. "[EU
Commission President Romano] Prodi, [EU Commissioner for Enlargement
Guenter] Verheugen and [EU representative for foreign and security policy
Javier] Solana, although the latter's statement is not so widely known, made
themselves very clear.

The neighbours policy excludes the prospect of Ukraine's membership of the
EU. This is the strategy of 25 states, and it cannot be altered," Chalyy
pointed out. "It is not only and not so much Ukraine's lack of readiness
which is the basis for the statements by Prodi and Solana," the former
diplomat went on. "The expansion of the EU concludes the period of
Euroromanticism and requires us to search for a new model of relations," he
believes. Among other things, he proposed building cooperation with Brussels
on the same basis as Switzerland, Norway and Iceland. "This kind of model
requires pragmatism, and this is precisely what will enable Ukraine to build
more equal relations," Chalyy said.

It will be recalled that during an unofficial meeting with the press in the
New Year of 2003, Chalyy had a bet with a journalist that Ukraine in 2010
would reach a level where it was ready to hold talks with the EU on
membership. It would not be a bad thing if this prediction became a real
pointer for action. Although for the moment it will have to be without the
participation of the last Euroromantic and the first Eurorealist. But I
believe he will be back. (END)
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THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER EIGHT
Ukraine's History and the Long Struggle for Independence
Historical Gallery: http://www.artukraine.com/histgallery.htm
==========================================================
8. URAINE: "CHALYY RESIGNED. END OF EUROPEAN INTEGRATION?"

ANALYSIS: By Leonid Amchuk
Ukrayinska Pravda web site, Kiev, Ukraine, in Ukrainian 17 May 04
BBC Monitoring Service, UK, in English, May 19, 2004

The resignation of First Deputy Foreign Minister Oleksandr Chalyy is a major
sign of Ukraine's increasing coolness to European integration, an opposition
web site has said. Chalyy was in charge of European integration, but was
finding himself sidelined. It is likely that his disillusionment was fed by
EU coolness to Ukraine and Ukraine's ratification of an economic union
agreement with Russia.

The following is an excerpt from the article by Leonid Amchuk headlined
"Chalyy resigned. End of European integration?" and published on Ukrayinska
Pravda web site on 17 May; subheadings have been inserted editorially:

One could have guessed long ago that Ukraine had problems with European
integration. However, the latest events bring on the suspicion that it is a
matter of a general renunciation of this strategic declarative course. While
the only achievement in this direction has been the victory of Ruslana on
Eurovision [song contest], the worse is the assessment for [President
Leonid] Kuchma. Two years ago, in May 2002, he proclaimed a document
entitled "European Choice".

Over the past three days two signal events happened that have added to the
archive of disappointments. Last Saturday [15 May] Kuchma addressed the
nation on the occasion of Europe Day. Almighty enthusiasm in the greeting,
and one little-noticed fact: the text did not once mention the words
"European integration".

The general impressions from the greeting were that it was either an
unsuccessful joke or a successful mockery.

The second signal event happened on Friday [14 May]. Precisely on the eve of
Europe Day, Kuchma agreed to the resignation request from one of the most
ardent lobbyists of the European choice for Ukraine, First Deputy Foreign
Minister Oleksandr Chalyy. This step was even more significant coming on the
eve of the annual Ukraine-EU Cooperation Council, which [Prime Minister
Viktor] Yanukovych is going to on Tuesday [18 May].

There now remain three great European integrators in Ukraine. The first is
Ukraine's authorized representative for questions of Ukraine's European and
Euro-Atlantic integration. He is First Deputy Prime Minister Mykola Azarov,
who, it seems, has devoted his life to becoming one of the authors of the
project to restore the USSR.

The second genius of European choice is the secretary of the State Council
for European and Euro-Atlantic Integration of Ukraine, the deputy head of
the presidential administration, Anatoliy Orel. He has clearly chosen as his
aim to destroy the Foreign Ministry as an independent structure, that main
"hotbed" of Euro-fans.

And the third main "European" is the chairman of that council, the author of
the theory of European choice, Leonid Kuchma.

ARDENT EUROPHILE

Oleksandr Chalyy worked for five years as the first deputy chief diplomat of
Ukraine. He resigned with the peaceful formulation - because of a wish "to
return to scientific and teaching work". In future, Ukraine's Euro-lobbyists
will probably tender their resignation because they need to look after their
garden and domestic animals. Since they will have little to do in power.

Chalyy was a significant person in the structure of Ukrainian power. He has
a stubbornness, somewhat tiresome for Brussels, but he never stopped
fighting for a European Ukraine, even when it looked like steps of despair.

Chalyy was defending the theory of Ukraine's European integration some weeks
before the creation of the SES [Single Economic Space - economic union with
Russia], stressing that the SES and EU were mutually exclusive of each
other: "No country in the world can have two integrations simultaneously. It
is like a square circle, a contradiction in terms."

"I want to say that the negotiation process on the SES is far from complete.
And it will be complete when the Supreme Council [parliament] ratifies the
document. And there is still a fairly considerable process ahead," Chalyy
said on 26 August 2003. Six months later, that "considerable process" ended.
Parliament ratified the SES.

Chalyy was noticed in the Supreme Council that day. The purpose of his visit
remains unknown. Maybe it was a last attempt to explain to deputies still
capable of thinking where they were taking Ukraine, or a Jesuitical order by
Kuchma to diplomats to go and urge deputies to favour the SES. In the same
way that the guarantor [of the constitution - Kuchma] in January this year
threw Chalyy together with [Foreign] Minister [Kostyantyn] Hryshchenko to
convince the Parliamentary Assembly of the Council of Europe not to take a
harsh resolution against Ukraine.

As a result, the resolution was not changed and some people decided to
accuse the Foreign Ministry of allegedly being to blame, because it was
unable to change the opinion of European MPs. Although the real guilty
parties of the humiliation of Ukraine in Strasbourg were sitting in Kiev.
And it is not impossible that they were pleased by the defeat of the
European integration team of the Ukrainian authorities.

At one point Chalyy made Russian ambassador [Viktor] Chernomyrdin lose his
equilibrium. At a time when the SES was not even thought of, Moscow was
actively luring Ukraine into the Eurasian Economic Union [EEU]. At one
sitting, Chalyy told Chernomyrdin that Ukraine could not simultaneously
integrate into the EU and the EEU. In reply, the Russian ambassador called
the high-ranking Ukrainian diplomat a "drowsy person", saying that prior to
that Kuchma had promised to make Ukraine an observer at the EEU. In
response, Chalyy said that, coming from the lips of Chernomyrdin, that
insult "sounds like a compliment".

REASONS FOR RESIGNATION

Now Chalyy has independently and voluntarily resigned. The deputy minister
who dealt with Ukraine's European integration was thoroughly disillusioned
with the project.

Chalyy's influence had recently been gradually restricted. At the end of
last year, economic questions, including the Euro-strategic question of
Odessa-Brody [oil pipeline], were removed from his charge. Another deputy
minister - Oleksandr Motsyk - is now in charge of them.

Ratification of the SES and the refusal of EU officials to give Ukraine even
a chance of concluding an agreement on European-type association were a
double blow for European optimists in Ukraine. "In conditions where a
fundamental decision has been taken to start integration into the SES on the

one hand, and the EU has definitively determined its position regarding the
European integration prospects of possible membership for Ukraine in that
organization, a new situation for the country is coming about, which
requires a new interpretation of principle. That is the main reason why I
believe that today I must concentrate on something else," Chalyy said in the
only comment after his resignation.

It may be that Chalyy is also blaming the EU for not stimulating reforms in
Ukraine. In the way that the EU did in relation to Poland, Slovakia and
Hungary, promising the prospect of EU membership in exchange for
transformations. However, Chalyy also understands on which street the
headquarters is located that led to the failure of "Ukraine's European
choice".

At present, according to Ukrayinska Pravda sources in the Foreign Ministry,
the 50-year-old Oleksandr Chalyy genuinely wants to engage in analysis and
perhaps write a book. As is known, he came into diplomacy in 1993 from the
post of deputy dean of the law faculty for scholarly work of the Kiev
Shevchenko University. Chalyy does not intend to become an ambassador or to
remain further in the Foreign Ministry system. [Passage omitted: possible
replacement - overrun by events]

The future of such former European integrators as Buteyko, Chalyy and
[former Foreign Minister Borys] Tarasyuk will also depend on how the
[October presidential] election turns out. The latter said in a comment for
Ukrayinska Pravda: "As a former colleague, I understand Oleksandr Chalyy's
step. It is a pity that one of the most professional diplomats has left the
government, but I hope that a time will come when his professionalism will
be required." (END)
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THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER NINE
The Rich History of Ukrainian Art, Music, Pysanka, Folk-Art
Arts Gallery: http://www.artukraine.com/artgallery.htm
Support "The Action Ukraine Report"...Send A Check Today
===========================================================
9. FORMER U.S. PRESIDENT GEORGE BUSH SR. TO VISIT KYIV,
AT VIKTOR PINCHUK'S INVITATION

By Paul Miazga, Kyiv Post Staff Writer
Kyiv Post, Kyiv, Ukraine, Thursday, May 20, 2004

Within months of U.S. President George Bush Sr.'s visit to Kyiv, on Aug. 1,
1991, Ukrainian citizens voted to become independent from the Soviet Union.
On May 21, Bush will return to Kyiv, this time as a private citizen on a
visit initiated by President Leonid Kuchma's son-in-law, parliament deputy
and tycoon Viktor Pinchuk.

The U.S. embassy in Ukraine, which made public the information in a May
18 statement, gave few details about the nature of the former president's
visit, but it is expected that the elder Bush will meet privately with
President Kuchma and Prime Minister Viktor Yanukovych as well as with
Pinchuk, whose main business holding is the Interpipe Corporation.

In Kyiv in 1991, President Bush addressed a gathering of the Supreme Soviet
of the Socialist Republic of Ukraine and delivered what has become known as
the "Chicken Kiev" speech, in which he said that the choice Ukraine faced
between the old Soviet regime and pro-independence forces was a "false" one.
That speech attracted criticism for its cautiousness in the face of the
cataclysmic changes the USSR was undergoing.

Bush will arrive in Kyiv after having been the guest of honor at a
$1,000-a-plate fundraising dinner in London on May 18 for his son and
current U.S. President George W. Bush. A small group of protestors in
London picketed the hotel where Mr. Bush was staying.

The London dinner was sponsored by the international arm of the U.S.
Republican Party, Republicans Abroad.

The expected arrival of Bush Sr. follows on the heels of other high-ranking
and influential American politicians who have come to Ukraine in recent
months, including Deputy Secretary of State Richard Armitage in March.
Unlike these figures, however, Bush Sr. will not be meeting with leading
opposition politician and presidential candidate Viktor Yushchenko - a fact
that has Yushchenko annoyed.

The leader of the Our Ukraine party, Yushchenko was quoted on Radio Liberty
May 18 as saying that the invitation of Bush Sr. is connected to the visit
of American billionaire financier and philanthropist George Soros. "Now it's
the turn of Mr. Bush," Yushchenko said.

"On the one hand, I understand that Ukraine must break through the isolation
and get involved in international dialogue - in other words, leave that zone
of international misunderstanding, where it has found itself in the last
four or five years," Yushchenko said.

"On the other hand, it rather smells like a political gambit."

"When the authorities organize visits of the kind, it is nothing but an
attempt to whitewash the incumbent's image. Without doubt, these are
maneuvers rather than sincere politics," he added. (END)
===========================================================
THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER TEN
Politics and Governance, Building a Strong, Democratic Ukraine
http://www.artukraine.com/buildukraine/index.htm
If The Action Ukraine Report is beneficial to you, support it.
===========================================================
10. POLISH STEEL MILLS MAY FACE SUPPLY CRISIS IF SUPPLIES
OF UKRAINIAN IRON ORE ARE CUT BACK

Polish News Bulletin, Warsaw, Poland, Friday, May 21, 2004

Ukraine, which supplies 80 percent of iron ore used by Polish steel mills,
has introduced licences for iron ore exporters. According to unofficial
information, it is also considering imposing duty on iron ore imported from
Ukraine to the European Union.

"Limiting of access to iron ore will be a great problem for firms that own
steel works. Above all for Ispat Polska Stal (IPS)," said a representative
of the industry. IPS, part of the LNM steel holding, produces 70 percent of
steel manufactured in Poland. Importing iron ore from Africa or Kazakhstan,
where LNM's iron ore mines are located, would be much more costly, due to
transport cost.

"Ukraine is not a member of the World Trade Organisation. But if Polish
producers suffer due to this (move), we hope that the European Commission
intervenes," said Mieczyslaw Nogaj from the Economy Ministry. A meeting
between the EU and Ukraine has been scheduled for 28 May. (END)
==========================================================
THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER ELEVEN
Major Articles About What is Going on in Ukraine
Current Events Gallery: http://www.artukraine.com/events/index.htm
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==========================================================
11. OPINION POLLS SHOW MOST UKRAINIANS SUPPORT
WITHDRAWAL OF TROOPS FROM IRAQ
72% Support Withdrawal From Iraq

Associated Press Worldstream, Kyiv, Ukraine, Thursday, May 20, 2004

KIEV - Most Ukrainians support pulling their troops out of Iraq, according
to public opinion polls announced Thursday, one day after pro-presidential
lawmakers overwhelmingly defeated an opposition initiative to withdraw them.
fourth largest non-U.S. contingent.

Some 72 percent of more than 2,000 people questioned in early April said
that Ukrainian casualties are not justified and supported a withdrawal, said
Andriy Bychenko of Kiev's Razumkov Center for Economic and Political
Studies. The margin of error was 2.3 percent.

Ukraine, which opposed the U.S.-led war, has the fourth largest non-U.S.
contingent in Iraq. Some 1,650 Ukrainian troops are serving in the
Polish-led force patrolling southern Iraq. Six Ukrainian soldiers have been
killed, three of them in combat. Two of the combat deaths came last month.

On Wednesday, lawmakers loyal to Kuchma turned down five separate proposals
aimed at ending Ukraine's military presence in Iraq, saying that withdrawal
of troops might have a negative effect on the coalition and could aggravate
the situation there.

Despite increasing domestic alarm over the growing violence in Iraq, Kuchma
and his allies have repeatedly said that the Ukrainian troops should stay in
Iraq until the end of their mandate.

The deployment of troops has significantly improved Ukrainian-U.S. ties,
which had been roiled by tensions over allegations that Kuchma had approved
the sale of sophisticated radar systems to Saddam Hussein's regime in
violation of United Nations sanctions.

Meanwhile, Ukraine's President Leonid Kuchma on Thursday discussed the Iraqi
issue in a telephone talk with his Polish counterpart Aleksander
Kwasniewski, Kuchma's office said in a statement. Details of the talk were
not immediately known. (am/mb) (END)
============================================================
THE ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER TWELVE
Ukraine's History and the Long Struggle for Independence
Historical Gallery: http://www.artukraine.com/histgallery.htm
============================================================
12. UKRAINE WON'T WITHDRAW TROOPS FROM IRAQ

Associated Press Online, Kiev, Ukraine, Wednesday, May 19, 2004

KIEV - The Ukrainian parliament has rejected an opposition proposal to
withdraw Ukraine's troops from Iraq.

At a closed-door session, lawmakers loyal to President Leonid Kuchma refused
to go along with the move, Mykola Tomenko, an opposition lawmaker said,
according to the Interfax news agency.

The decision to discuss the withdrawal of troops was initiated by the
opposition Communist Party, which argued that Ukraine was facing possible
terrorist attacks because of its military presence in Iraq.
============================================================
ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER THIRTEEN
The Genocidal Famine in Ukraine 1932-1933, HOLODOMOR
Genocide Gallery: http://www.artukraine.com/famineart/index.htm
============================================================
13. UKRAINE STILL WANTS TO TAKE PART IN IRAQ RECONSTRUCTION

Interfax-Ukraine, Kyiv, Ukraine, Friday, May 21, 2004

KYIV - Ukraine, as an active participant of the coalition in Iraq, wants
Ukrainian companies to participate in Iraq's reconstruction.

Ukraine's Deputy Foreign Minister Oleh Shamshur said this at the deputy
foreign ministers and coalition ambassadors session of coalition talks on
Iraq, held in Washington on May 20, the Ukrainian Foreign Ministry's press
service reported on Friday.

Shamshur said Ukraine considers it extremely important to stick to the
timetable for transferring power to Iraq's temporary government, to
strengthen the U.N.'s role in the peaceful reconstruction of Iraq and pass a
new U.N. Security Council resolution on Iraq.

"Ukraine supports further steps to improve the coordination of coalition
forces' efforts in Iraq, which is of great importance to enhance the
security of Ukraine's peacekeepers in Iraq," he said. (END)
============================================================
ACTION UKRAINE REPORT-04, No. 84: ARTICLE NUMBER FOURTEEN
The Rich History of Ukrainian Art, Music, Pysanka, Folk-Art
Arts Gallery: http://www.artukraine.com/artgallery.htm
Support "The Action Ukraine Report"...Send A Check Today
============================================================
14. UKRAINE OPPOSITION FIGURE TYMOSHENKO FACES NEW PROBE

TV 5 Kanal, Kiev, Ukraine, in Ukrainian, 20 May 04
BBC Monitoring Service, UK, in English, Thursday, May 20, 2004

Kiev - The Prosecutor-General's Office has launched a criminal case against
MP and faction leader Yuliya Tymoshenko on charges of attempting to bribe a
judge. The press service of the Prosecutor-General's Office reported that
the case was launched following a statement by citizen Borovko who said that
through him Tymoshenko had attempted to influence the court and ensure the
release of arrested managers of the Unified Energy Systems of Ukraine
company.

Mr Borovko told the Prosecutor-General's Office that he had allegedly
received from Tymoshenko a big sum in dollars, which he had to pass on to
the judge. He failed to do it, and now Tymoshenko is demanding that he
return her 125,000 dollars. Borovko made public his allegations a couple of
days ago. He introduced himself as former assistant to MP Yuliya Tymoshenko.

Tymoshenko immediately said that it is not difficult to fake an identity
card of an MP's assistant. She rejected the accusations and said that she
would not be surprised if she were accused of poisoning boxer [champion]
Klychko next time.

Along with the announcement of a case against Tymoshenko, the
Prosecutor-General's Office confirmed the arrest of the Unified Energy
Systems former chief accountant, Antonina Bolyura, for failure to turn up
for questioning.

[Ukrainian prosecution accused Tymoshenko of complicity in the shadow
dealings of the disgraced Ukrainian prime minister, Pavlo Lazarenko, who is
standing trial in the USA. In May 2004, the US court rejected most of
charges against Lazarenko, including a bribe which he had allegedly accepted
from the Unified Energy Systems which Tymoshenko used to run.] [Audio and
video available. Please send queries to kiev.bbcm@mon.bbc.co.uk] (END)
============================================================
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