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Action Ukraine Report

"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 110
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, THURSDAY, July 8, 2004

-----INDEX OF ARTICLES-----
"Major International News Headlines and Articles"

1.UKRAINE BOWS TO RUSSIAN OIL INDUSTRY, POLAND LOSES OUT
Polish News Bulletin, Warsaw, Poland, Wednesday, Jul 07, 2004

2. UKRAINIAN PRIME MINISTER SAYS RUSSIAN PRIME MINISTER
WILL HELP TO CONTROL FUEL PRICES IN UKRAINE
One Plus One TV, Kiev, in Ukrainian, 7 Jul 04
BBC Monitoring Service, UK, in English, Wednesday, Jul 07, 2004

3. REVERSING FLOW OF ODESA-BRODY PIPELINE MOTIVATED BY
PERSONAL INTERESTS OF UKRAINIAN GOVERNMENT OFFICIALS
Our Ukraine Website, Kiev, Ukraine, Wednesday, 06-07-04

4. KUCHMA INSTRUCTS CABINET OF MINISTERS TO CREATE
HUGE NEW STATE COAL COMPANY VUHILLIA UKRAINY
By Inna Sokolovska, Ukrainian News, Kyiv, Ukraine, July 6, 2004

5. UKRAINE MARKET BEST IN EUROPE
Ukraine's stock market is Europe's best performer this year
By Todd Prince and Halia Pavliva
Bloomberg, New York, NY, Tuesday, July 6, 2004.

6. 36 PERCENT OF SOFTWARE IN USE WORLDWIDE IS PIRATED
91 percent of software installed in Ukraine in 2003 was pirated
Business Wire, San Francisco, CA, Wednesday, Jul 07, 2004

7. UKRAINE: MEDIA UNDER INCREASING ASSAULT
As Ukrainians prepare to vote for president in late October
Freedom House, New York, NY, Wednesday, July 7, 2004

8.WIESENTHAL CENTER ASKS UKRAINE TO FIND WAR CRIMINALS
INTERFAX, Moscow, Russia, Wednesday, July 7, 2004

9. LYTVYN AND U.S. AMB DISCUSS PRESIDENTIAL ELECTIONS
By Dmytro Horshkov, Ukrainian News, Kiev, Ukraine, July 6, 2004

10. POPULAR UKRAINIAN LEADER MORTGAGES APARTMENT
TO RAISE FUNDS FOR CAMPAIGN FOR PRESIDENCY
By Anna Melnichuki, AP Online, Kiev, Ukraine, Tuesday, Jul 06, 2004

11. UKRAINIAN PRIME MINISTER YANUKOVYCH SURE OF
FIRST-ROUND WIN IN PRESIDENTIAL CAMPAIGN
Interfax-Ukraine news agency, Kiev, in Russian, 7 Jul 04
BBC Monitoring Service, UK, in English, Wednesday, Jul 07, 2004

12. UKRAINIAN SOCIALIST PRESIDENTIAL CANDIDATE MOROZ
RECEIVES HIS CANDIDATE'S CERTIFICATE
TV 5 Kanal, Kiev, Ukraine, in Ukrainian, 7 Jul 04
BBC Monitoring Service, UK, in English, Wednesday, Jul 07, 2004

13. UKRAINIAN PRESIDENTIAL CANDIDATE YUSHCHENKO
SIGNS FAIR ELECTION DECLARATION
Interfax-Ukraine news agency, Kiev, in Russian, 7 Jul 04
BBC Monitoring Service,UK, in English, Wednesday, Jul 07, 2004

14. OPPOSITION DIVIDED AHEAD OF UKRAINIAN
PRESIDENTIAL ELECTION TO BE HELD IN OCTOBER
COMMENTARY By Taras Kuzio, Eurasia Daily Monitor
The Jamestown Foundation, Washington, D.C.
Wednesday, 7 July 2004 - Volume I, Issue 46

15. "YOURS TO DISCOVER"
13 years after independence, Ukraine is on its way
Ukraine's Ambassador to Canada, Mykola Maimeskul
By Peter Schneider, EMBASSY magazine
Ottawa, Ontario, Canada, June 23, 2004

16. PRESIDENTIAL CAMPAIGN STARTS IN UKRAINE WITH ALL
MAJOR CONTENDERS JOINING THE RACE.
Jan Maksymiuk, RFE/RL East European Perspectives
News and Views on Central and Southeastern Europe
Vol 6, No. 14, Radio Free Europe/Radio Liberty
Prague, Czech Republic, Thursday, July 8, 2004
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER ONE
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1. UKRAINE BOWS TO RUSSIAN OIL INDUSTRY, POLAND LOSES OUT

Polish News Bulletin, Warsaw, Poland, Wednesday, Jul 07, 2004

WARSAW - The Ukrainian president allegedly gave in to Russian oil-producer
pressure: he announced that Ukraine will transport Russian crude oil to its
Odessa port through the Odessa-Brody pipeline. According to Ukrainian news
service Forum, Janukowich [Ukraine's prime minister] said that specialists,
not politicians, should decide the quotas of oil and the direction of
shipping performed by the Odessa-Brody pipeline.

This declaration impedes an earlier decision, according to which the
pipeline would transfer Caspian oil to the Brody terminal, and on to the
Polish refinery in Plock, through a pipeline costing EUR300m to build.
A Polish-Ukrainian company administering the project was to have
been set up.

The Polish side has already met preliminary conditions for such a company
to be established, as defined in an agreement signed on 16 January, 2004.

However, Ukraine changed its position three days after Janukowich held
talks with Russian Prime Minister Fradkov in Moscow. (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER TWO
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2. UKRAINIAN PRIME MINISTER SAYS RUSSIAN PRIME MINISTER
WILL HELP TO CONTROL FUEL PRICES IN UKRAINE

One Plus One TV, Kiev, in Ukrainian, 7 Jul 04
BBC Monitoring Service, UK, in English, Wednesday, Jul 07, 2004

KIEV - [Presenter] The Russian government will help the Ukrainian cabinet to
keep fuel prices at their current level. In a telephone conversation with
Russian Prime Minister Mikhail Fradkov, [Ukrainian Prime Minister] Viktor
Yanukovych has secured promises of assistance in talks with oil companies
which operate in Ukraine.

Fradkov promised that oil traders would sign a memorandum with the Ukrainian
government soon, Yanukovych said. [Passage omitted: background on rising
fuel prices in Ukraine]

[Yanukovych] I had a conversation with my colleague Russian Prime Minister
Fradkov last night. He promised me that in the near future this kind of
memorandum will be signed between Russian oil traders who operate in Ukraine
and the Ukrainian government, with the Russian government's assistance.
[Passage omitted: experts comment on oil prices] [Audio and video available.
Please send queries to kiev.bbcm@mon.bbc.co.uk] (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER THREE
==========================================================
3. REVERSING FLOW OF ODESA-BRODY PIPELINE MOTIVATED BY
PERSONAL INTERESTS OF UKRAINIAN GOVERNMENT OFFICIALS

Our Ukraine Website, Kiev, Ukraine, Wednesday, 06-07-04

KIEV - "While making decisions to reverse the flow of the "Odesa-Brody" oil
pipeline and [about selling off] "Kryvorizhstal" the government was guided
exclusively by the private economic interests of the highest government
officials of Ukraine and the members of their families," thinks the first
deputy head of the parliamentary committee on the fuel and energy complex,
"Our Ukraine" representative Mykola Martynenko.

He thinks that this means that the government "fears losing the elections
and sees no future for itself in Ukraine. It seems that, after Kuchma's
fiasco at the NATO summit, the government's clans decided: it is better to
"take the cash" now since they feel that they are losing on the
international stage as well as in Ukraine itself."

"The decision to reverse the flow of the "Odesa-Brody" oil pipeline was made
by Yanukovych's government secretly, which has already become a tradition,
without public discussion or any explanations. Furthermore, it was done
after the parliament left for summer holidays so that it cannot oppose the
decision. It is clear that the government is planning to implement the
reverse prior to the presidential elections," noted the people's deputy.

Analyzing the government's decision, Martynenko pointed out that the
"geopolitical reversion is unfavorable for Ukraine." "Moreover, our country
will be discredited by the world and once again appear as an inconsistent
and unstable partner. Even a temporary reverse of the pipeline for
transporting heavy oil will make the "Odesa-Brody" pipeline unfit for
transporting light Caspian oil," thinks Mykola Martynenko.

"Secondly, the secrecy surrounding the decision proves again that Yanukovych
's government is weak and dependent. It is incapable and does not want to
defend Ukrainian national interests. This government does not understand
Ukraine's interests. This is a gathering of temporary lodgers. Russia is
fighting for its interests here, solving the problem of diversifying oil
supply mechanisms in Western Europe. Ukrainian government, on the other
hand, is destroying any possibility of diversifying oil transit and, thus,
is threatening the energy safety of the country," stressed one of the heads
of the parliamentary committee on the fuel and energy complex.

"Thirdly, Yanukovych's government in relations with Russia is continuously
discrediting Ukraine. During the gasoline crisis, the government focused all
the blame on Russian companies and Russia. Then it tried extinguishing the
fire by force and by administrational means. Now, Yanukovych's government
will put all responsibility for the fate of Ukraine on Russia and will say
that it cannot influence the situation," declared Mykola Martynenko.
(www.razom.org) (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER FOUR
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4. KUCHMA INSTRUCTS CABINET OF MINISTERS TO CREATE
HUGE NEW STATE COAL COMPANY VUHILLIA UKRAINY

By Inna Sokolovska, Ukrainian News, Kyiv, Ukraine, July 6, 2004

KIEV - President Leonid Kuchma has instructed the Cabinet of Ministers to
create the national joint-stock company Vuhillia Ukrainy within three
months. The president's press service disclosed this to Ukrainian News,
citing his decree "On Measures for Improving Efficient Management of the
Coal Sector and its Development."

"To carry out activities regarding creation in the established order of the
Vuhillia Ukrainy National Joint-Stock Company within a three-month period,"
it is mentioned in the statement. President Kuchma instructed the Cabinet of
Ministers to approved the charter of the company.

He instructed the Cabinet of Ministers to transfer 100% shares in open
joint-stock companies that were created during the consolidation and
corporatization of profitable and potentially profitable coal enterprises,
scientific research and engineering design institutions to the statutory
fund of Vuhillia Ukrainy.

Also to be included in the statutory fund of the company are 100% shares
of institutions, which it is appropriate to keep under state ownership to
ensure the energy safety of the country, and also coal enterprises, for
whose development there is a need to attract nongovernmental investments
and which might be privatized.

The statutory fund of Vuhillia Ukriany is also to be made up of 100% shares
of open joint-stock enterprises that were formed as a result of
consolidation and corporatization of state coal-extracting enterprises,
which should appropriately be transferred to workers. According to the
decree, the consolidation and corporatization of the specified enterprises
should be done within six months.

Also, the decree specifies that assets of scientific research and
engineering design institutions and coal enterprises, should be transferred
to the company's statutory fund, and 100% shares of these institutions and
coal enterprises will be transferred to Vuhillia Ukrainy after their
corporatization.

Kuchma directed the Cabinet of Ministers to determine the mechanism for
administering the company, its assets, as well as the mechanisms for
attracting investments and credits. He also directed the Cabinet of
Ministers to decide the issue of consolidating 100% of the company's shares
into state ownership. "To carry out management of 100% of the company's
shares prior to legislative resolution of the issue of administering
facilities of state ownership," it is mentioned in the statement.

He also instructed that changes be made to the structure and limit number of
workers at the Ministry of Fuel and Energy due to the transfer of several
functions of this ministry to the Vuhillia Ukriany company. As Ukrainian
News earlier reported, the Ministry of Fuel and Energy had previously stated
the intention to create Vuhillia company by July. In the opinion of Fuel and
Energy Minister Serhii Tulub, the creation of the Vuhillia company will make
it possible to improve financing of the sector and the trade flows. (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER FIVE
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5. UKRAINE MARKET BEST IN EUROPE
Ukraine's stock market is Europe's best performer this year

By Todd Prince and Halia Pavliva
Bloomberg, New York, NY, Tuesday, July 6, 2004.

KIEV -- Ukraine's stock market is Europe's best performer this year, buoyed
by exports to neighboring Russia and the European Union. The country's
benchmark PFTS Index, with 10 stocks, has surged 57 percent. The next best
European performer, Romania's BET10 Index, is up 45 percent. The Dow Jones
Stoxx 50 Index, a regional benchmark for Western Europe, has added less than
0.1 percent in the period.

Ukrainian shares climbed as the economy accelerated at a record pace. Rising
demand for fuels, steel and services has bolstered prospects for companies
such as VAT Ukrnafta, the country's largest oil company, and VAT UkrTelecom,
its former phone monopoly. "It's a neglected market that has strong growth
and cheap valuations," said Aivaras Abromavicius, who manages $600 million
in Eastern European equities at East Capital Asset Management in Stockholm,
which owns shares of Ukrnafta. "The investment case is there."

The country's $50 billion economy will expand 9.5 percent this year, up from
9.4 percent in 2003, according to government estimates. That compares with a
6.6 percent growth forecast for Russia by the Economic Development and Trade
Ministry, and is more than five times the 1.7 percent rate predicted by
Brussels.

Exports jumped 40 percent in the first quarter, according to the State
Statistics Committee. Russia, Ukraine's largest trading partner, accounts
for about a quarter of the total. The European Union ranks second and China
third, government statistics show.

Some investors do not yet buy the argument for Ukraine, given the dearth of
shares available. An average day is equivalent to about two minutes' worth
of Russian share trading, brokerage and Bloomberg calculations show.

Ukraine's ranking as one of Europe's most corrupt countries by Transparency
International, a Berlin-based monitoring organization, has also discouraged
investors.

Ukrainian stocks trade at lower prices relative to corporate earnings
estimates than elsewhere in Europe. That leaves some shares bargains as a
result, investors said.

The PFTS, which has slipped 10 percent from its high on April 20, trades at
about 6.6 times expected 2003 earnings, according to the Kiev-based
brokerage MFK Investment Bank. Morgan Stanley Capital International EM
Eastern Europe Index of 41 stocks is at 12 times. The Stoxx 50 trades at
about 19 times.

Shares of about 300 companies are registered on the 8-year-old bourse in
Kiev. The shares are mainly former state-owned businesses that the
government sold or gave to employees after the fall of communism in 1991.
About 20 companies regularly trade, according to Foyil Securities New
Europe, a Kiev brokerage.

Ukrnafta, which accounts for 31 percent of the benchmark, has soared 87
percent this year. Net income doubled last year as demand soared, according
to estimates by Dragon Capital. UkrTelecom, which makes up 11 percent, has
jumped 44 percent in 2004. VAT Dniproenergo, a power provider in the
Dnipropetrovsk region, has more than doubled. "Utilities are a proxy for the
country's economic growth," said Mattias Westman, who manages $650 million
for Prosperity Capital Management in London. The fund has recently bought
shares of Dniproenergo.

VAT Nyzhnodniprovsky Truboprokatny Zavod, the nation's largest pipemaker,
has climbed 66 percent as Russia, the world's largest oil and natural gas
producer, buys more pipes for transporting fuel. VAT Khartsyzsky Trubny
Zavod, another pipemaker and a supplier to Gazprom, has almost tripled.
Khartsyzsky said it expects 2004 revenue to rise 10 percent to $100 million.

Russia, whose RTS Index has slipped 0.1 percent in 2004, outperformed
Ukraine the past three years, prompting some investors to shift to Ukraine,
viewed as having greater scope for gains. The RTS surged about fourfold from
2001 through 2003, with the PFTS increasing 54 percent in the period.

"Ukraine's stock market woke up this year as investors saw the shares were
cheap," said John Coast Sullenger, who manages $340 million in Eastern
European equities at Lombard Odier Darier Hentsch & Cie. in Geneva. The
lack of shares for trading has kept investors away.

>From $500,000 to $2 million of Ukrainian shares trade each day, according to
Dmytro Tarabakin, head of sales and trading at Dragon. That compares with
the more than $1 billion in Russian shares. Ukrainian managers may follow
the lead of their Russian counterparts, who have sold shares to investors as
stock prices gained in Moscow.

Stirol management may sell shares once the shares approach their "fair value
of $12 to $15," said company president Nikolai Yankovsky. About 4 percent
of the stock trades on exchanges, with managers and employees controlling
70 percent and a foreign fund holding the remaining 26 percent.

"Management is interested in increasing the number of shares traded, but it
doesn't make sense to sell now when we feel the shares are undervalued,"
Yankovsky said in an interview. Stirol shares have risen 87 percent this
year to $4.76. (www.bloomberg.com) (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER SIX
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6. 36 PERCENT OF SOFTWARE IN USE WORLDWIDE IS PIRATED
91 percent of software installed in Ukraine in 2003 was pirated

Business Wire, San Francisco, CA, Wednesday, Jul 07, 2004

Thirty-six percent of the software installed on computers worldwide was
pirated in 2003, representing a loss of nearly $29 billion. These are the
key findings of a global software piracy study released today by the
Business Software Alliance (BSA), the international association of the
world's leading software manufacturers.

Conducted for the first time by global technology research firm
International Data Corporation (IDC), this year's BSA global piracy study
incorporated major software market segments including operating systems,
consumer software and local market software. In previous years, the study
was limited to business software applications.

The inclusion of these new categories paints a broader, more accurate
picture of the global software piracy problem based on IDC's extensive
industry and market knowledge. The study found that while $80 billion in
software was installed on computers worldwide last year, only $51 billion
was legally purchased.

"Software piracy continues to be a major challenge for economies worldwide,"
said Robert Holleyman, president and CEO of BSA. "From Algeria to New
Zealand, Canada to China, piracy deprives local governments of tax revenue,
costs jobs throughout the technology supply chain and cripples the local,
in-country software industry."

Holleyman said the IDC study reflects a logical evolution in BSA's
decade-long effort to measure piracy in the global economy. Its scope was
expanded to account more accurately for trends such as the growth of local
software markets worldwide and the acceleration of Internet piracy.

For its analysis, IDC drew upon its worldwide data for software and hardware
shipments, conducted more than 5,600 interviews in 15 countries, and used
its in-country analysts around the globe to evaluate local market
conditions. IDC identified the piracy rate and dollar losses by utilizing
proprietary IDC models for PC, software and license shipments by all
industry vendors in 86 countries.

Among key findings:
-- The piracy rate in the Asia/Pacific region was 53 percent, with dollar
losses totaling more than $7.5 billion.
-- In Eastern Europe, the piracy rate was 71 percent, with dollar losses at
more than $2.1 billion.
-- In Western Europe, the rate was 36 percent, and dollar losses totaled
$9.6 billion.
-- The average rate across Latin American countries was 63 percent, with
losses totaling nearly $1.3 billion.
-- In the Middle Eastern and African countries, the rate was 56 percent on
average, with losses totaling more than $1 billion.
-- In North America, the piracy rate was 23 percent. The losses totaled more
than $7.2 billion.

The study found that the size of a regional software market is the critical
link between piracy rates and actual dollars lost. For instance, 91 percent
of software installed in the Ukraine in 2003 was pirated, as compared to 30
percent in the U.K. But dollar losses in the U.K. ($1.6 billion) were about
17 times higher than those in the Ukraine ($92.1 million). This difference
is attributed to a much larger total PC software market in the U.K. than in
the Ukraine.

"A number of factors contribute to the regional differences in piracy,
including local-market size, the availability of pirated software, the
strength of copyright laws, and cultural differences regarding intellectual
property rights," said John Gantz, Chief Research Officer at IDC.
"Unfortunately, we found that high market growth regions also tend to be
high piracy regions, such as China, India and Russia. If the piracy rate in
emerging markets - where people are rapidly integrating computers into
their lives and businesses - does not drop, the worldwide piracy rate will
continue to increase."

"The fight for strong intellectual property protection and respect for
copyrighted works spans the globe, and there is much work to be done,"
Holleyman said. "BSA will continue to work with governments to enact
policies to protect software intellectual property as well as implement
programs to raise business and consumer awareness about the importance
of copyright protection for creative works. Lowering the piracy rate will
stimulate local economic activity, generate government revenue, create job
growth and cultivate future innovation."

For more details about the study, please visit www.bsa.org/globalstudy/.
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER SEVEN
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7. UKRAINE: MEDIA UNDER INCREASING ASSAULT
As Ukrainians prepare to vote for president

Freedom House, New York, NY, Wednesday, July 7, 2004

NEW YORK, NY --------- As Ukrainian citizens prepare to vote in
important national elections in October, the country's news media is under
increasing assault, threatening the chances for a fair electoral contest,
according to a new Freedom House report issued today.

The report, "Under Assault: Ukraine's News Media and the 2004 Presidential
Elections," was first released in October 2003 and has been updated to
reflect crackdowns on the press since the beginning of 2004.

Ukraine's pivotal presidential election holds significant political,
social, and economic importance, offering a new beginning for Ukraine.
The contest will have major implications for Europe and the transatlantic
community. The updated report is available online at:
www.freedomhouse.org/research/specreports/ukmedia604.pdf

A version of the report in Ukrainian is available at:
www.freedomhouse.org/research/specreports/ukmedia604UKR.pdf

"Ukraine's news media suffer under an elaborate system of control that
keeps opposition political groups and other critics off the airwaves and
out of print." said Freedom House Executive Director Jennifer Windsor.
"The situation has only worsened as election day approaches."
Since January, Ukrainian authorities have stepped up their harassment and
intimidation of independent and opposition media.

According to the report, non-state controlled radio stations have been
shut down to "remove alternative voices and political debate from the
airwaves."

In February, Radio Free Europe/Radio Liberty (RFE/RL) ceased broadcasting
on Radio Dovira, a decision made by the radio station's new director, a
known loyalist of President Leonid Kuchma. Authorities abruptly shut down
Radio Kontynent once it picked up the RFE/RL feed.

In a disturbing incident, Heorhiy Chechyk, director of the private radio
and television company Yuta, died in a car crash on March 3. Several
independent Ukrainian journalists have also been mysteriously murdered in
recent years, including Heorhiy Gongadze, a journalist who investigated
high-level government corruption. Secret tape recordings made in
President Kuchma's office shortly before Mr. Gongadze's disappearance
in September 2000 appear to implicate the president in the journalist's
abduction.

The report highlights how President Leonid Kuchma's administration
directly distorts news and skews coverage of political affairs. In addition
to state influence and interference, the report outlines other obstacles
facing news media in Ukraine, including economic vulnerabilities, poor
ethical standards, and inadequate journalist training.

The presidential administration has also reportedly issued a series of
decrees forbidding any reporting of negative statements about Ukraine by
international organizations or governments, suggesting a "determined
attempt to shield the electorate from criticism emanating from Brussels
and Washington," the report said.

"According to our earlier assessment, the level of official harassment of
Ukraine's independent made unlikely an open contest of ideas and opinions
ahead of October's elections," said Ms. Windsor. "Now we are seeing a
stepping up of intimidation, along with the alarming death of a
journalist. This raises fresh concerns not only that honest and fair
coverage of the elections will be absent, but that overall press freedom
conditions in Ukraine are reaching a new, perilous low."

The report warns that despite the inability of President Kuchma to seek a
third term, he and his backers will attempt to determine the electoral
victory of a chosen successor.

Unless the international community and Ukraine's media owners, editors,
journalists, and civic organizations exert substantial pressure,
uniformity and bias in mass media coverage of Ukraine's political life will
only intensify in the run-up to the elections, the report warns.

Among several recommendations, the report urges the Ukrainian government
to:
* Immediately cease issuing and distributing "temnyky" (theme directives
that instruct editors on news coverage), and end the intimidation of
top-level editors at news media companies;
* Ensure equal access of leading candidates to the airwaves on state-owned
television and radio broadcasts, and guarantee that candidates criticized
in state-owned media are given equal air time in the lead up to voting.

The report also urges the international community to:
* Urge Ukraine's government and administration to uphold freedom of speech
and freedom of information rights, and in particular to legally enforce
domestic laws already protecting these freedoms in Ukraine;
* Ensure that international election monitoring begins six months before
the vote, with extensive and systematic monitoring of news media bias and
equal access.

The report was prepared for Freedom House by Jeremy Druker and Dean
Cox, Prague-based analysts at Transitions Online (www.tol.cz), in
cooperation with the Freedom House research team.

In last year's annual global survey of press freedom, Freedom of the Press
2003, Freedom House downgraded Ukraine from "Partly Free" to "Not
Free," because of "state censorship of television broadcasts, continued
harassment and disruption of independent media, and the failure of the
authorities to adequately investigate attacks against journalists."

The report issued today will also be featured in the forthcoming Freedom
of the Press 2004, available for order from Rowman and Littlefield
Publishers at: http://www.rowmanlittlefield.com/.
Freedom House background reports on Ukraine can be found online:
Freedom of the Press 2004
www.freedomhouse.org/pdf_docs/research/pfs/2004/UKRPFS04.pdf
Freedom in the World 2004: Ukraine
http://www.freedomhouse.org/pdf_docs/research/freeworld/2004/ukraine2004.pdf
Nations in Transit 2004: Ukraine
www.freedomhouse.org/research/nitransit/2004/ukraine2004.pdf
Countries at the Crossroads: Ukraine
www.freedomhouse.org/research/crossroads/2004/Ukraine2004.pdf
----------------------------------------------------------------------------
Freedom House Contact: Michael Goldfarb; (212) 514-8040 x12
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER EIGHT
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8. WIESENTHAL CENTER ASKS UKRAINE TO FIND WAR CRIMINALS

INTERFAX, Moscow, Russia, Wednesday, July 7, 2004

KYIV, Ukraine ---- The Simon Wiesenthal Center has called on
Ukraine's justice agencies for assistance in finding Nazi war criminals that
may be residing on Ukrainian territory.

This subject was discussed at a meeting between the director of the center's
Israeli department, Efraim Zuroff, and Ukrainian Justice Minister Oleksandr
Lavrynovych on Wednesday in Kyiv, the ministry's press service reports.

Zuroff told Lavrynovych that the Wiesenthal Center is searching for former
Nazis responsible for crimes committed during World War II. The center also
works to reduce ethnic intolerance and violence.

He said that over the last three years, the center has been working in
Eastern European and other countries, including Latvia, Lithuania, Estonia,
Slovakia, Poland, Romania, Croatia and Austria. Over that time, it has found
266 Nazi war criminals, most of whom have been punished.

Lavrynovych said the search for and punishment of Nazi criminals should be
done in accordance with the law, and law-enforcement agencies should study
information about these criminals and conduct pre-court investigations.
LINK: http://www.interfax.ru/e/B/0/28.html?id_issue=9718665 (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER NINE
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9. LYTVYN AND U.S. AMB DISCUSS PRESIDENTIAL ELECTIONS

By Dmytro Horshkov, Ukrainian News, Kiev, Ukraine, July 6, 2004

KIEV -- Parliament Speaker Volodymyr Lytvyn and the Unites States'
Ambassador to Ukraine John Herbst have discussed the progress of the
campaign for this year's presidential elections in Ukraine. The press
service of the parliament disclosed this to Ukrainian News.

Lytvyn said that the Ukrainian parliament would do everything possible to
ensure that the elections are transparent and democratic. He expressed the
hope that presidential candidates will not employ dirty election
technologies.

"It is important to everyone in Ukraine for democratic elections to be held,
the conduct of which will give no reason to doubt the outcome of the
elections regardless of the surname of the winner," the press service quoted
Lytvyn as saying. As Ukrainian News earlier reported, the presidential
elections will be held in October this year. (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER TEN
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10. POPULAR UKRAINIAN LEADER MORTGAGES APARTMENT TO
RAISE FUNDS FOR CAMPAIGN FOR PRESIDENCY

By Anna Melnichuki, AP Online, Kiev, Ukraine, Jul 06, 2004

KIEV - Popular opposition leader Viktor Yushchenko has mortgaged his
apartment and declined all donations from political parties as he campaigns
for presidential elections this fall, his spokeswoman said Tuesday.

Irina Gerashchenko said Yushchenko had offered the Kiev apartment he lives
in with his wife and five children as collateral for a loan. She also said
he had borrowed 500,000 hryvna (US$100,000) from "many friends and
colleagues" because he didn't want any "politically colored" money." "He
mortgaged his flat to return loans ... he refused to accept donations from
political parties," she said.

The decision apparently was a move by Yushchenko to portray himself as
free of Ukraine's endemic corruption. Yushchenko is widely seen as
Ukraine's most popular politician and a strong contender in the Oct. 31
presidential elections, in which the other main candidate is Prime Minister
Viktor Yanukovych, who is backed by factions allied with incumbent
president Leonid Kuchma.

Yushchenko, who organized mass street protests in recent to demand
Kuchma's ouster on accusations of widespread corruption, plans to run
as an independent candidate.

Serhiy Tihipko, who heads Yanukovych's campaign, said Yanukovych
could spend around 10 million hryvna (US$2 million) in his election effort.
Kuchma's critics have repeatedly said that democracy has suffered during
his 10-year tenure. His presidency has lurched from one scandal to another,
including his alleged involvement in the killing of a crusading journalist
and the alleged sale of sophisticated radar systems to Iraq.

Since becoming independent in 1991 in the collapse of the Soviet Union,
economic reforms have been slow and the economy remains mainly agrarian.
(am/me/jh) (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER ELEVEN
=========================================================
11. UKRAINIAN PRIME MINISTER YANUKOVYCH SURE OF
FIRST-ROUND WIN IN PRESIDENTIAL CAMPAIGN

Interfax-Ukraine news agency, Kiev, in Russian, 7 Jul 04
BBC Monitoring Service, UK, in English, Wednesday, Jul 07, 2004

KIEV - Viktor Yanukovych, presidential candidate and prime minister, expects
victory in the first round of the presidential election. He told journalists
this on Wednesday [7 July] at the CEC [Central Electoral Commission] after
receiving his candidate's certificate.

Yanukovych said his campaign strategy "will be a working one". "Before
anything else I must carry out the cabinet programme, and I also must plan
what the state will be like after the election," he said.

"I must hear and feel all this from people and take the first steps during
the election campaign," he said, adding "Everyone must work for the future,
and I will also work for the future."

He said his campaign "will be above all honest". "Ukraine has laws, and I
will adhere to them during the campaign, I will set an example."

Another candidate has already said he's sure he'll win in the first round -
[opposition] Our Ukraine bloc leader Viktor Yushchenko [see Interfax-Ukraine
5 July 1500 gmt "Ukrainian opposition contender says sure of first-round win
in presidential vote"]. (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER TWELVE
==========================================================
12. UKRAINIAN SOCIALIST PRESIDENTIAL CANDIDATE MOROZ
RECEIVES HIS CANDIDATE'S CERTIFICATE

TV 5 Kanal, Kiev, Ukraine, in Ukrainian, 7 Jul 04
BBC Monitoring Service, UK, in English, Wednesday, Jul 07, 2004

KIEV - [Presenter] Socialist leader Oleksandr Moroz received his
presidential candidate's certificate one hour after the prime minister
[Viktor Yanukovych]. Mr Moroz promises to base his election campaign
on his own programme of changes in Ukraine, not on the criticism of the
authorities. Here is what he said about his rivals:

[Moroz] If these people received candidate's certificates, it means they are
worthy people. That is why I respect them. I understand and know their
strengths and weaknesses, I know what they can use during the campaign, but,
just as with our politicians, I treat everyone with respect. (END)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER THIRTEEN
==========================================================
13. UKRAINIAN PRESIDENTIAL CANDIDATE YUSHCHENKO
SIGNS FAIR ELECTION DECLARATION

Interfax-Ukraine news agency, Kiev, in Russian, 7 Jul 04
BBC Monitoring Service,UK, in English, Wednesday, Jul 07, 2004

KIEV - Ukrainian presidential candidate and leader of the [opposition] Our
Ukraine bloc Viktor Yushchenko has signed a declaration on fair elections
and called on other candidates who share a belief in fair elections to join
him in signing, the bloc's press service says.

"We candidates for president of Ukraine, at the start of our campaigns,
appeal to all our countrymen. The election is an extremely important moment
in the life of the state and society. It is a moment of truth that will
define the fate of our people for 10-15 years ahead. It must in no way be
allowed to turned into a competition to see who can deceive people the best,
who makes the most promises or who slings the most mud at opponents. All
these things do not only go against all moral norms, but they also knock the
country from the right path and force people to choose a cat in a bag. The
choice should not be based on a lie, since that would mean all life from
there on would be defined by this lie," the document says.

It says candidates consider the campaign a test of honesty and responsible
behaviour and it should be conducted in precise observance of the
Constitution and legislation, as well as ethical norms.

Candidates who sign commit to: give only true biographical facts; respect
the work of the media and help journalists meet their commitments on
balanced coverage of the activities of all candidates; under no
circumstances resort to dishonest methods; avoid completely putting pressure
on journalists, observers and voters; and not involve government bodies in
work outside their remits. Also, the candidates pledge to: "conduct dialogue
in the language of programmes, proposals and sincere and open discussion,
and not speculation about social, ethnic, cultural and religious
differences; do the maximum to aid voters in making a conscious choice on
the basis of a free and open exchange of ideas and views about the country's
future development."

Candidates call on everyone involved in the election to strictly adhere to
the laws of Ukraine, "to avoid any actions or lack of action that could
hinder people from making a weighed personal choice," and demand that all
candidates be provided with equal opportunities for presenting their
position. Also, they warn that infringements of democratic election
procedures and attempts to prevent a transparent and fair election will be
viewed as infringements of Ukrainian citizens' constitutional rights and the
country's national interests, and express certainty that in these conditions
the campaign will help cleanse the state of the things that stop it working
effectively.

"We are convinced that with the result of this election, Ukraine will step
firmly on to the path of the restoration of spirituality, democratic
transformations and political and economic development, which together will
be a reliable foundation for the nation's prosperity. We hope that this
autumn will be a true spring for Ukraine!," the declaration says. (END)
==========================================================
ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER FOURTEEN
==========================================================
14. OPPOSITION DIVIDED AHEAD OF UKRAINIAN
PRESIDENTIAL ELECTION TO BE HELD IN OCTOBER

COMMENTARY By Taras Kuzio, Eurasia Daily Monitor
The Jamestown Foundation, Washington, D.C.
Wednesday, 7 July 2004 - Volume I, Issue 46

One day after the Ukrainian presidential elections officially started on
July 3, four major candidates filed their papers with the Central Election
Commission. The oligarchic regional clans and political parties of the
pro-presidential camp have united behind Prime Minister Viktor Yanukovych.
His own Party of Regions, the "party of power" that totally dominates the
Donbas, endorsed Yanukovych at their weekend congress in Zaporizhzhia.

In contrast, the opposition will field three presidential candidates: Viktor
Yushchenko (supported by the populist Yulia Tymoshenko bloc), Petro
Symonenko (Communist Party [KPU]), and Oleksandr Moroz (Socialist
Party [SPU]). Will this disunity and rivalry prevent one of the three
opposition candidates from defeating Yanukovych?

Recent elections illustrate the advantages of a united opposition. In
Yugoslavia the opposition finally succeeded in defeating Slobodan Milosevic
in the Yugoslav presidential elections after a decade of disarray. In
October 2000 they overcame their differences and the 18 parties united under
the umbrella Democratic Opposition of Serbia (DOS). Their candidate,
Vojislav Kostunica, won 50.4 percent of the vote in the first round. The
only major opposition party not included in DOS was Vuk Draskovic's Serbian
Renewal Movement. In Georgia's 2003 and March 2004 parliamentary elections,
the opposition was less united than its counterparts in Serbia.

At the same time, Mikhail Saakashvili's National Movement-Democratic Front,
which closely resembles the Tymoshenko bloc, and Nino Burjanadze's bloc,
whose position is similar to Yushchenko's, faced fewer domestic opponents
than does Yushchenko in October.

While the Saakashvili-Burjanadze alliance did not face off against a hostile
Communist Party, the Tymoshenko-Yushchenko alliance faces a KPU equally
hostile to both the alliance and the authorities. Georgia's Labor Party
resembles the Socialist Party of Ukraine, and both stood in the Georgian and
Ukrainian elections separate from the Saakashvili-Burjanadze and the
Tymoshenko-Yushchenko alliances.

Ultimately, the Socialist candidate, Moroz, will be the kingmaker in this
year's Ukrainian elections. Moroz as a joint "Left" candidate would ensure
the Left a place in the second round. Together, Moroz and Symonenko are
polling at about 23-25%, higher than Yanukovych's 15-17%.

The combined Left vote (KPU, SPU, and Progressive Socialists) in Ukraine
ranges between 30.07% at its lowest in the 2002 elections, to 44.50% in the
first round of the 1999 elections. Moroz came third in the 1999 elections
with 11.29%, and the SPU third in 1998 and fifth in the 2002 elections, with
8.56% and 6.87% respectively.

The KPU has repeatedly shrugged off proposals from the SPU to back Moroz
as the joint candidate of the Left. As the "senior" party, the KPU would
never agree to back a candidate from its "younger brother," the SPU.

As the sole candidate of the KPU, the uncharismatic and neo-Stalinist
Symonenko is destined to lose any presidential elections he contests. In the
1999 elections, he obtained 22.24% percent in the first round then lost in
the second with only 37.80%. Most of Leonid Kuchma's 56.25% winning votes
in the second round of the 1999 elections came from Ukrainians voting
against the KPU. Such a negative vote against the Communists would not
be possible if the moderate Socialist and derzhavnyk Moroz was the joint
Left candidate.

Unable to obtain the KPU's backing for a joint Left candidate, Moroz also
refused to follow Tymoshenko and back the Yushchenko camp. Moroz was
personally angry with Yushchenko and Tymoshenko for not supporting
compromises on constitutional reforms that Moroz ended up backing in
parliamentary votes in April and in June. If a Moroz-Yushchenko-Tymoshenko
alliance had been successfully negotiated, they could have ostensibly
repeated the opposition's victory in the 2000 Yugoslav elections in round
one. Yushchenko and Tymoshenko have a "hard core" support base of 35%.
Moroz's additional support of 8-11%, based on his and the SPU's votes in
earlier elections, might have tipped the total past 50% in round one.

Yushchenko and Tymoshenko have not ruled out Moroz joining them. In a joint
appeal, they advised Moroz, "Today much depends on you: whether we can
achieve that level of unity of all democratic forces of Ukraine" (Ukrayinska
pravda, July 2).

The authorities are clearly afraid of Moroz aligning himself with
Yushchenko-Tymoshenko. Last weekend 300,000 fake leaflets circulated in
Eastern Ukraine and claimed to be from "Moroz." In a new twist, the leaflets
accused Yushchenko of being an "agent of the Kremlin and Russian capital"
(Ukrayinska pravda, July 2 and 3).

Like the Burjanadze-Saakashvili bloc in Georgia, the Yushchenko-Tymoshenko
alliance will attract broad support from both moderate and populist
opposition to the authorities. The Tymoshenko bloc placed fourth in the 2002
elections with 7.26 %, up from the 4.67% obtained by its "mother" party,
Hromada, in the 1998 elections. Support for the Tymoshenko bloc resembles
that given to the current Minister of Defense, Yevhen Marchuk, who ran on an
anti-Kuchma populist platform in the 1999 elections and placed fifth with
8.13%.

Marchuk's 1999 election campaign was backed by the same parties that today
are members of the Tymoshenko bloc. Tymoshenko's alliance with Yushchenko
is already radicalizing his election rhetoric. Yushchenko's mild criticism
of the authorities, despite numerous provocations against him, turned many
of his potential supporters away. This was most likely a factor in freezing
his support at 21-25% since the 2002 elections.

Yushchenko has abandoned his mild manner. Now he has called for "bandits"
to be imprisoned after the elections, re-opening shady privatization deals,
eliminating criminal elements from the security forces, and taking
television stations away from oligarchs. At a July 4 rally in Kyiv,
Yushchenko told the 50,000 participants, "The criminal government is to
blame for all of this. Today citizens are not free in their own country,
they are unprotected against the whims of the bureaucrats, tax inspectors,
militia, and the procurators" (yushchenko.com.ua).

With two Left candidates standing in October, neither will likely garner
enough votes to advance to round two. This may make it impossible for
Yushchenko to win in round one, meaning he would be forced into a run-off
with Yanukovych.

This calculus would only change if Moroz dropped his candidacy and backed
Yushchenko. Alternatively, Yushchenko's campaign could gather sufficient
momentum by attracting members of the ruling elites not enamored of
Yanukovych. In the 1994 elections the incumbent, Leonid Kravchuk, was
defeated by the treachery of officials who defected to Kuchma, giving him a
6% margin of victory. Will Ukrainian history repeat itself in October? (END)
==========================================================
ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER FIFTEEN
==========================================================
15. "YOURS TO DISCOVER"
13 years after independence, Ukraine is on its way
Ukraine's Ambassador to Canada, Mykola Maimeskul

By Peter Schneider, EMBASSY magazine
Ottawa, Ontario, Canada, June 23, 2004

Ukraine's Ambassador to Canada, Mykola Maimeskul, is reflecting on his
personal reasons for choosing a diplomatic career: "Let me remind you of the
slogan on the Ontario license plates", he says. "'Yours to discover.' As a
student of Kiev State Taras Shevchenko University, I was given a chance as
an interpreter to discover and explore the world. Having visited several
countries in Africa, I came to the conclusion that the most interesting
business is learning about the customs and cultures of other nations. I'd
say it was a romantic notion. But today, looking back, I can say it was the
right decision."

Mr. Maimeskul, who previously spent many years as Ukraine's representative
to the international community in Geneva, is especially pleased to be posted
to Canada, which is home to the largest Ukrainian population outside the
motherland. He says, "Canada is a country that enjoys old democratic
conditions and cherishes unique multicultural values. We have a lot in
common. And what is more important, Canada provides the most appealing
example of how to build a multicultural democratic society that has
succeeded in achieving prosperity, of how to peacefully coexist next to a
larger, more powerful neighbour, and how a relatively smaller nation can
make a difference in world politics.

Ukraine is among the oldest nations in Europe, even though its modern
statehood accounts for little more than a decade. Going back to 13 years
ago, Canada was the first western nation to recognize Ukraine's
independence."

The ambassador says he has a dream, one that is realistic and achievable
during his tenure. He says, "I would like Canadians to be acquainted with
the new Ukraine, that's getting stronger, better and more democratic day by
day. I would be more than happy if the Canadians of Ukrainian origin who
left their motherland for different reasons could appreciate and enjoy the
beauty of the modern Ukraine." Mr. Maimeskul says it is high on his list of
personal priorities to assist the advancement of people-to-people relations.

Ukraine's Ambassador has watched the expansion of the European Union with
interest, and notes the array of challenges the EU faces as it grows. "The
enlargement creates a lot of challenges not just for the EU itself, but for
neighbouring countries, including Ukraine. The new circumstances dictate the
necessity to revise our policy towards Ukraine-EU cooperation," he says.

"We do believe that after the accession of our closest ally - Poland - our
western border became not a paper wall of bureaucracy but the gateway
to the EU. We have been building up special relations with the EU since
Ukraine's independence."

Mr. Maimeskul insists that the map of Europe will not be complete without
Ukraine, and full membership in the EU is a long-term objective for the
country. He says, "Bearing in mind our strategic goal to become a member of
the European family, we have to concentrate our efforts on further
improvements in our political, legal, economic, and social spheres to
achieve compliance with EU standards.

The new European Neighbourhood policy will be of great use for Ukraine
to deepen its access to the Internal Market and, in the long run, extend the
four freedoms: goods, services, capital, and labour. But I would like to
underline that it will be up to Ukraine to decide the speed and depth of
this process. We have a lot to accomplish."

Ukraine is a member of a regional trade agreement that also includes Russia,
Belarus and Kazakhstan. Mr. Maimeskul says, "The creation of the Single
Economic space in no single way means the change of Ukrainian course towards
European integration. At the same time, it should be taken into account that
the creation of the SES is aimed at reaping maximum benefit from regional
economic cooperation, facilitating to the full extent all existing
possibilities for mutually advantageous trade contacts, promoting
social-economic development and raising living standards in Ukraine and
partner countries." He adds that the establishment of a Free Trade Area
based on WTO principles could even further contribute to these objectives.

Mr. Maimeskul paints a candid picture of the uphill climb Ukraine has faced
since independence. He says,"Ukraine faced a number of problems inherited
from its time as a territory of the former Soviet Union, beginning with the
Chernobyl nuclear plant disaster, obsolete weapons of mass destruction, and
unsolved social problems, as well as an economy in decline. We did not have
enough knowledge and experience to overcome all these problems in a short
period of time, yet we always had deep intentions to build our country into
a strong, democratic and fair society, and a good member of the
international community.

Early on, we considered our role as an international player was in
contributing to the security of the region as well as the globe. 10 years
ago, Ukraine, by its good will, renounced the world's third-largest nuclear
arsenal and became party to the non-proliferation treaty." The ambassador
says, "We still believe in such a mission today. That is why Ukraine
actively participates in peacekeeping operations all over the world. So far
more than 17,000 servicemen of the armed forces of Ukraine have taken part
in 29 operations."

Mr. Maimeskul explains that much has been achieved in just over a decade's
time, and he is optimistic about the strengthening of democratic
institutions in Ukraine. "Since independence, we've had to build from
scratch all the necessary institutions that exist in a democratic society.
The Parliament of the Ukraine has become a real power, able to effectively
work on the most demanding issues facing the country. We have probably the
strongest and most active parliamentary opposition of any of the former USSR
territories.

And we are fortunate to contain our political struggles within our
Parliament, and not on our streets. Now Ukraine approaches presidential
elections scheduled for this fall; I am more than sure that the elections
will be conducted in a fair, democratic, and transparent way." Asked for a
concluding statement about today's Ukraine, the ambassador says, "Ukraine
enjoys harmony within the country, maintains friendly relations with its
neighbours, and is experiencing tangible economic growth." (END)
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http://www.embassymag.ca/html/index.php?display=story&full_path=/2004/june/2
3/schneider_2/ (paste link together)
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ACTION UKRAINE REPORT-04, No. 110: ARTICLE NUMBER SIXTEEN
==========================================================
16. PRESIDENTIAL CAMPAIGN STARTS IN UKRAINE WITH ALL
MAJOR CONTENDERS JOINING THE RACE.

Jan Maksymiuk, RFE/RL East European Perspectives
News and Views on Central and Southeastern Europe
Vol 6, No. 14, Radio Free Europe/Radio Liberty
Prague, Czech Republic, Thursday, July 8, 2004

The campaign for the 31 October presidential election started officially on
3 July. The Central Election Commission has already registered three major
contenders for the post of president: Prime Minister Viktor Yanukovych,
Our Ukraine leader Viktor Yushchenko, and Socialist Party leader Oleksandr
Moroz. One more major competitor, Communist Party leader Petro
Symonenko, expected to apply for registration in the near future. This
"preliminary" registration means, in particular, that a registered candidate
may immediately begin his/her election campaign. The commission, however,
may nullify the registration of a presidential candidate if he or she fails
to provide at least 500,000 signatures in support of his or her candidacy
by 20 September.

The most theatrical inauguration of the election campaign was
made by opposition leader Viktor Yushchenko, whom surveys put in
the lead of the presidential race with 24 percent support of the
electorate. On 3 July, Yushchenko with his family visited his native
village, Khoruzhivka in Sumy Oblast, where he obtained his
85-year-old mother's blessing for the presidential campaign. "God
help you in your good deeds," UNIAN quoted Varvara Yushchenko
as saying to her son, after she made the sign of the cross over him.

Yushchenko publicly announced his intention to run in the
2004 presidential race in Kyiv on 4 July, to an estimated crowd of
50,000 people, who were gathered there by Our Ukraine activists as
representatives of all of Ukraine's 35,000 settlements. "I am
running for president. I will win the election, and this will be a
victory of all of us!" Yushchenko said at the rally. "The authorities
will work for the people. Corruption will be ended. All will be equal
before the law. Bandits will go to jail," he said, outlining the main
concerns of his presidency. Shortly after the rally he personally
submitted the documents necessary for his registration as a
presidential candidate to the Central Election Commission.

After leaving the headquarters of the Central Election
Commission, Yushchenko was confronted with another crowd of his
supporters, this time numbering some 35,000. This rally was conducted
by Oleksandr Zinchenko -- only a year ago a bitter political opponent
of the Our Ukraine leader, now manager of Yushchenko's election
campaign (see "RFE/RL Belarus and Ukraine Report," 22 June 2004).

The slogan of Yushchenko's election campaign is "I
Believe, I Know, We Can." The following is how Zinchenko, according
to the "Ukrayinska pravda" website, decoded this phrase, speaking at
the rally in front of the Central Election Commission headquarters on
4 July: "I believe! Look in Yushchenko's eyes. Is there any doubt
that he believes?! He believes in God, in his parents, in Ukraine. I
know! This is the man who led the National Bank and the government.
And you know what a prime minister he was! We can! Everything depends
on us! On 31 October we will witness an event that in modern history
can be compared only with the winning of [Ukrainian] independence in
1991."

Last week, Yushchenko signed an important coalition accord
with Yuliya Tymoshenko, the leader of the eponymous opposition bloc,
to pool efforts in the presidential-election campaign in order to
promote his election victory. The accord sets up a new parliamentary
group, the Force of the People (Syla narodu), which will unite all
lawmakers of the pro-Yushchenko coalition. The deal also proposes a
program of joint actions, called the "Manifest of People's
Victory," in order to "take over power in Ukraine for cleaning [the
country] of criminal clans and political banditry" and build a
"democratic and just state under the rule of law." The accord
stipulates that in the event of Yushchenko's victory in the 2004
presidential ballot, the distribution of posts in the future
government among coalition members will be carried out proportionally
to their gains in the 2002 parliamentary election.

Prime Minister Viktor Yanukovych, who with backing reaching
16 percent is second after Viktor Yushchenko in pre-election surveys,
inaugurated his election campaign less conspicuously than the latter.
Yanukovych was formally proposed as a presidential candidate by a
congress of the Party of Regions in Zaporizhzhya on 4 July.
Yanukovych appointed Serhiy Tyhypko, head of the National Bank and
leader of the Labor Ukraine Party, as chief of his election staff.
Oleksandr Moroz and Petro Symonenko were proposed as
presidential candidates by the Socialist Party and the Communist
Party, respectively, at party congresses that took place in Kyiv on 4
July. The congress of the Socialist Party adopted an appeal to the
Communist Party to run a joint presidential candidate from the
Socialist Party in the 2004 presidential election.

It is expected that the list of registered presidential hopefuls will be
much longer. The Central Election Commission, apart from Yanukovych,
Yushchenko, and Moroz, registered Oleksandr Rzhavskyy, leader of
the Single Family association. Natalya Vitrenko, leader of the Progressive
Socialist Party, has also declared her intention to run in the presidential
election, along with leaders of several other minor parties.

Ukrainian media have already registered some examples of
dirty election techniques that, according to many observers, will be
used profusely in this year's presidential campaign. On 2 July,
three Ukrainian regions, Kharkiv, Sumy, and Poltava, were flooded
with more than 3 million bogus leaflets of the Socialist Party --
titled "To Prevent the Traitor From Coming to Power" -- in which
Moroz accuses Yushchenko of being "an agent of the Kremlin" and a
"guarantor of the interests of Russian capital."

Moreover, the "Ukrayinska pravda" website on 6 July quoted two
temnyks -- unsigned secret instructions that are regularly sent to major
state-controlled and private media outlets -- that effectively tell
journalists to reduce their coverage of Yushchenko's moves in the
presidential campaign to factual reports, without expanding them with
any commentaries. On the other hand, one of the temnyks instructs
journalists to highlight the recent publication of a book whose author,
described as a "medium-level tax inspector," discloses, among other
revelations, that Yushchenko stole "millions of dollars" from the state in
1991-92.

"I'm looking to next year with fear," President Leonid Kuchma told
journalists in December 2003. "Everybody agrees that the [2004]
election will be the scariest and dirtiest ever." Given that the
presidential administration led by Viktor Medvedchuk is widely seen in
Ukraine as the main compiler of temnyks, Kuchma may be one of the
best-informed persons with regard to what some presidential candidates
should fear in the next several months. (END)
==========================================================
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