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Action Ukraine Report

"THE ACTION UKRAINE REPORT"
An International Newsletter
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 172
The Action Ukraine Coalition (AUC), Washington, D.C.
Ukrainian Federation of America (UFA), Huntingdon Valley, PA
morganw@patriot.net, ArtUkraine.com@starpower.net (ARTUIS)
Washington, D.C.; Kyiv, Ukraine, FRIDAY, September 24, 2004

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

1. "CANDIDATES THE MYTHMAKERS"
A look at six "political myths" in Ukrainian presidential election campaign
ANALYSIS: by Volodymyr Semkiv
Ukrayina Moloda, Kiev, Ukraine, in Ukrainian 15 Sep 04; p 6
BBC Monitoring Service, UK, in English, Sat, Sep 18, 2004

2. "50 YEARS LATER, UKRAINE STILL LACKS A FREE PRESS"
Ukraine is the biggest disappointment among the countries
to which Radio Free Europe/Radio Liberty broadcasts.
Thomas A. Dine, President, RFE/RL, Inc.
Speech given in Lviv, Kyiv and Kharkiv, Ukraine
Radio Free Europe, Radio Liberty (RFE/RL)
Prague, Czech Republic, September 22-23, 2004

3. UKRAINE'S PRESIDENTIAL ELECTION AND POISONING OF
PRESIDENTIAL CANDIDATE VIKTOR YUSHCHENKO
Statement by Congresswoman Marcy Kaptur (D-OH)
U.S. House of Representatives, Washington, D.C.
Wednesday, September 22, 2004

4. AN ASSASSINATION ATTEMPT?
EDITORIAL, Kyiv Post, Kyiv, Ukraine, Thursday, Sep 23, 2004

5. POLISH AMBASSADOR SAYS UKRAINE NEEDS GOOD
RELATIONS WITH RUSSIA THAT WILL NOT HINDER
ITS PATH WEST
By Marek Ziolkowski, Poland's Ambassador to Ukraine
Writing in Rzeczpospolita; Polish News Bulletin; Thu, Sep 23, 2004

6. UKRAINE WILL IMPROVE ACCESS TO HIGH-QUALITY HIV/AIDS
MEDICINES AND DIAGNOSTICS AT LOWER PRICES THROUGH
PARTNERSHIP WITH CLINTON HIV/AIDS INITIATIVE
Clinton HIV/AIDS Initiative; Health of Ukraine
Elena Franchuk of ANTIAIDS Foundation
Kiev, Ukraine, Thursday 23 September 2004

7. ILLICHIVSK PORT TO BOOST GRAIN TRANSHIPMENT
CAPACITIES 60% TO 8 MILLION TONS A YEAR BY NOVEMBER
Ukrainian News Agency, Kyiv, Ukraine, September 20, 2004
========================================================
ACTION UKRAINE REPORT-04, No.172: ARTICLE NUMBER ONE
========================================================
1. "CANDIDATES THE MYTHMAKERS"
A look at six "political myths" in Ukrainian presidential election campaign

ANALYSIS: by Volodymyr Semkiv
Source: Ukrayina Moloda, Kiev, in Ukrainian 15 Sep 04; p 6
BBC Monitoring Service, UK, in English, Sat, Sep 18, 2004

KIEV - The authorities are pedalling myths to sway voters during the current
election campaign, an opposition Ukrainian daily has said. This is important
in order to package a candidate in a way that shows his best side and hides
weaknesses, it said. It said that specially trained people strike up
conversations on politics in order to plant ideas into the population, after
which they should flourish and influence mass opinion.

Among the main myths encouraged by the authorities are that Prime Minister
Viktor Yanukovych is a man of action and not words, while another suggests
that there is no need to vote as there is little difference between him and
opposition leader Viktor Yushchenko. The use of these myths to keep many
voters at home on election day will make it easier to manipulate the
election result, it concluded.

The following is an excerpt of the article by Volodymyr Semkiv, entitled
"Candidates the mythmakers", published in the Ukrainian newspaper
Ukrayina Moloda on 15 September, subheadings are as published:

Besides temnyky [coverage instructions to news organizations allegedly
issued by the presidential administration], provocations, and other "widely
used" campaign methods, yet another method of popularizing one's
candidate is being actively applied in this campaign the cultivation of
political myths in society.

ONE GRANNY SAID IT,
ANOTHER BELIEVED IT AND TOLD A THIRD

The main meaning of the work of any political image-maker comes down to
one thing: to give the population its "product" in the kind of packaging
which will attract attention or can hide its (the product's) negative sides.
The most elegant is a package whose appearance is accepted by a person
to such an extent that he starts to widely acclaim it to those close to him.
In practice, the essence lies in political image-makers planting thoughts
among the population. On the outside [these thoughts] should look like
the truth, be simple and most important "for the simple folk", so people
accept them as something of their own and do not even come close to
suspecting that they are the invention of some part of a political image-
making mind.

The main sources for spreading them, certainly, are the mass media
(television, newspapers, leaflets, and so on). Although these methods are
often not even needed in order for them to rule among the population. For
example, in 1999 a fairly popular argument for [Ukrainian President] Leonid
Kuchma [who was running for re-election] was this: "He has already stolen in
earlier years, now he won't steal. But if we elect another person he will
try to stuff his pockets to get back the money spent on his campaign".

Some say specially trained people spread this category of "myths" (you can't
say this about television): they dress in simple clothes and head for the
market places or train stations. These people strike up conversations with
people they meet and start talking about politics. And then they stick in
their arguments like the ones above. If the myth is successful, people start
to widely believe in it, and most importantly they get it into the minds of
their acquaintances during political discussions.

The effectiveness of such a method is fairly high if you take into account
that the advice of close people is one of the decisive factors in
determining the sympathies of the electorate. According to research by the
Democratic Initiatives foundation and the Socis centre, 18 per cent of
those polled settle on "their" candidate after conferring with people whom
they trust. That is 10 times more effective than advertisements on
billboards, posters and other "big-mugs!" [a play on the words board
and mug, allusion to Prime Minister Yanukovych's campaign, which
includes billboards showing his face].

VIRTUAL "EXTREMISTS" AND "ECONOMISTS"

In just under two months before the election in Ukraine, a pile of myths
have been spread around. If you look carefully at the election campaign,
their number is impressive. This campaign is gathering more virtual and
stereotypical content overall. For example, [opposition candidate] Viktor
Yushchenko's opponents are trying to label him as a "radical-nationalist"
and a "pro-American" politician, and his team is being labelled with
financial abuses and practically with terrorism.

On the other hand, they are trying to portray Mr Yanukovych as an
economist, the likes of which the world has never seen. Still, these two
myths are not thriving among the people even though most attention is
being paid to promoting them. Ukrayina Moloda has already written about
these two inventions of PR-thought, and as they say, in colour. But even
without them there is plenty of material with which to fill a textbook on
"Political myths-2004".

MYTH ONE: YANUKOVYCH IS A PERSON OF ACTIONS,
NOT OF WORDS

It is a fact that the Ukrainian people are tired of vociferous politicians.
It is no coincidence that the slogans "Fewer words", "Against all" or "Not
by word, but by deed" spring up from time to time in elections. In the case
of former Prime Minister Yushchenko this slogan, to be honest, was backed
up by real deeds, and so it was especially popular among the people. This
time, a similar slogan is being used in the Yanukovych campaign. Television
channels report around the clock about the unprecedented growth of the
economy, but the prime minister himself is rarely heard to speak. He holds
almost no news conferences and on television he is usually used as an
illustration in news video clips.

In this way, the commentary of pro-incumbent politicians is working to
foster the impression in the minds of people that Yanukovych really is a
person of deeds and does not wag his tongue in vain. In truth, the
pro-incumbents were forced to do this. Yanukovych, to put it mildly, is no
orator. Compared to Mr Yanukovych, Mr Kuchma is a light of eloquence:
a Yanukovych speech, even when in Russian, is very sluggish, he trips over
words and speaks in stock phrases. And it would be well for him to not
write either: in his own declaration submitted to the Central Electoral
Commission, and in an article in one newspaper, Mr Yanukovych made
so many mistakes even the chickens laughed.

That is why the main spokesman for this campaign is [National Bank
governor] Serhiy Tyhypko. And also why the Yanukovych headquarters
needs to comment on key events and report on the achievements of their
own candidate. But Mr Yanukovych's "star" time is soon to come, political
debates on television. If, of course, the pro-incumbent candidate does not
ignore the debates.

MYTH TWO: LOVED ONES CAN BE FORGIVEN EVERYTHING

Many Ukrainians have witnessed how the Yanukovych team works. For the
worth of six million signatures gathered in support of Mr Yanukovych "by
carrot and stick", "anti-crises managers" in his headquarters immediately
invented an excuse: you tell us the specific names of the bureaucrats in
question and we'll react. [This refers to the abuse of administrative
resources at local level in support of Yanukovych, for example plant bosses
telling employees to vote for him or risk losing their jobs.] They were
named and more than once.

But the Yanukovych headquarters came up with another "brilliant" idea for
explaining away administrative resources: blame everything on the excessive
enthusiasm of local bureaucrats. "I acknowledge there are people who
remember those times (the Soviet Union author) and how elections were
carried out then," Mr Tyhypko recently said at a news conference, "and who
know they need to give instructions and collect lists. They think that the
way elections were carried out in the Soviet Union is normal. There are
other people who want to show their loyalty to the authorities".

In fact, if the representatives of the candidate from power are so intent on
clean elections, then would it not be worth their while to rein in these
bureaucrats who have gone beyond the mark and who so arduously love their
candidate? And another question: if Yanukovych cannot council with several
thousand people, who are accountable to him in executive power, then what
can be expected from him as the leader of a country with 47m people?

MYTH THREE: FROM RAGS TO RICHES

In the spring, media under the control of the authorities began to report on
the sharp rise in Yanukovych's rating. But in May his popularity began to
fall. In particular, this was due to another twist in the scandal linked to
Yanukovych's court convictions. This topic is not very pleasing to the head
of the government or to those who are heaping piles of money into putting
him on Bankova Street [location of presidential administration]. Even Mr
Tyhypko admits that "this is not a big plus for the candidate".

In short, crisis managers had to come up with something. And now you hear
from the mouths of many pro-authority politicians that Yanukovych had a hard
childhood: raised with no parents, the influence of the street. But he, say
the prime minister's fans, was able to overcome himself and achieve
something in life. Even in leaflets for Yanukovych, under the enigmatic
heading [apparently along the lines of a palm reading seance] "The line of
fate", the electorate is told: "A hard life lesson. Any of your deeds can be
a determining factor in life. That is fate. You cannot give in to despair
and go with the flow. You must be able to overcome. And first of all,
[overcome] yourself. Then you can change fate. Hold to this in your future".

One acquaintance shared his thoughts a few days ago, "Are there really many
of us who have not sat behind bars even three days of our life? That doesn't
mean anything". And, in principle, this myth can also affect a voter.
Especially if you take in account the great number of youths in our society
who, because of a lack of prospects in life, simply get drunk or get onto
the wrong path, especially in "problem" regions, and their parents can only
hope their offspring will someday "overcome" themselves. For such as these,
Yanukovych is an example in full measure. [Passage omitted: More of the
same.]

MYTH FOUR:
"YUSHCHENKO, YANUKOVYCH..WHAT'S THE DIFFERENCE?"

At the Ukrayina Moloda forum (a special department on the Internet page
of our newspaper) one reader wrote: "No patriot has ever hung himself over
the election or non-election of a candidate. And all this empty talk about
"is there life after the election?" is not worth a broken stick: as we
lived, so we will live, like we got up at seven in the morning and ran to
work, we will continue to run". This person is not waiting for changes from
this or the other candidate coming to power. So this "everyday" argument
is very strong and not easy to break. It is good for the authorities,
since first, it lessens the interest of the voters in political life (and
this makes him less likely to really examine who of the candidates is
really worthy to be president), second, this indifference to the elections
makes it even easier to manipulate an "increase" in the number of ballots.

In unison with the "everyday" argument, they slip in a "political" one. For
example, Communist leader Petro Symonenko is building his campaign on
criticism of both Yushchenko and Yanukovych. He defines the fight between
them as "a war between criminal capital". Mr Symonenko hopes this rhetoric
will improve his own rating, but de facto he is singing the song to which
the presidential administration has written the music. The scenario in which
the elections is to become a heady fight between two Viktors is definitive
in this election.

In this context many little-known (better known as "auxiliary") candidates
are speaking. They say that "society is being deprived of a choice", that
only a "Kuchma-ite" and an alleged "radical" are on offer, when Ukraine
really needs a nationwide leader. As a result, the authors of this myth plan
to "whisper" to the people that Yushchenko's methods are no better than
Yanukovych's. The difference lies only in one being in power and the other
without power. So isn't it better to choose a hereditary political course?

In speaking of myths which are convenient to the Yanukovych team, then we
should show examples of how Yushchenko is fighting them. One just need take
a phrase from the video clip by V. Y. Klyuchov "Yushchenko is running for
president". This phrase reminds people of those times when for the first
time they had hope in the future in the last 10 years (right at the time of
Yushchenko's premiership). And so this fall is a choice not between two poor
choices, but a chance to justify the hope which the authorities have tried
to ward off. It is not good for them for the people to see the light at the
end of the tunnel in front of them. "Stability" and "holding to the
political course" are better. Put more simply, the era of "Kushma-ism".

MYTH FIVE: THE NAME OF THE PRESIDENT IS ALREADY KNOWN

For some reason, this myth is most loved by voters. In answer to the
question "Who will become president?" you often hear, even suggested on
television and "insider" pollsters "Yanukovych, of course,". When you ask
this person [answering] who he will vote for, it turns out either for
Yushchenko or maybe [Socialist Party of Ukraine leader Oleksandr] Moroz.
There is only one explanation for this paradox: Ukrainians are already
prepared for the election to be falsified. This myth began to creep into the
consciousness of the electorate after [some suspicious] elections,
especially in Mukacheve where almost one in five voting ballots was
falsified.

It was just after 18 April that the number of people convinced of a
Yanukovych victory began to soar, despite Yanukovych's own rating being
close to 20 per cent. And spokesmen for the authorities begin using these
numbers and not popularity ratings, saying "you see, 50 per cent of people
think Yanukovych will be president, so nothing else can happen". The
Mukacheve election syndrome also "foils" the work of the electorate: "it is
not enough that the result of the race may be known beforehand, you could
get a punch in the head from a "criminal thug" at a voting station". The
spreading of this myth could boomerang back against Yanukovych, because
his electorate is somewhat more passive (his voters are happy with the
current situation and are not exactly demanding in their political views).
This section of the electorate can even fail to come and vote, and even
moreso if convinced of a Yanukovych victory.

Yushchenko's voters are much more active. These are people who will
charge to the voting booths, to at least change something. Among other
things, Yushchenko's headquarters is working out an antidote to this myth:
a mass of observers are being prepared and the international community is
being enlisted. Yushchenko's team explains to people at every campaign
stop that this can significantly reduce the possibility of falsification.

Especially making it impossible to affect the activity of voters, that is
the power of the people. This is where the name for the coalition to support
Yushchenko comes from "People's Power", it is practically the antonym
to "the power of falsification", "the power of the authorities" and so on.

MYTH SIX: NOTHING DEPENDS ON MY VOTE

This myth is also very widespread (and you should note, third among those
aimed at strengthening the passiveness of voters). If the idea of the
falsification of the election has been pushed in recent times, Ukrainians
have probably been feeding on the thought in this subheading with their
mother's milk. This is the brightest proof of the lack of a civic society in
Ukraine. This is on the level of Ukrainian mentality, which for some reason
makes a Ukrainian comfortable in feeling himself of little worth. It is
fairly hard to fight this myth. But entirely possible.

Not long ago in Lviv, we met several people collecting signatures for
Yushchenko. One of them told a man who could not see the sense in it to go
and vote. The man collecting signatures said pretty much the following: "The
weight of your one vote really won't decide anything. But your position is
the position of your family and several acquaintances. And that is already a
half a dozen votes. Further: your not going to vote means you do not believe
in your voice, that is, in your viewpoint. Today you cower before the vote,
tomorrow before your boss, in front of whoever is stronger, the seller at
the market, and finally, in front of yourself.

And more. One Indian philosopher said a person must carry that ideal which
he wants to see in society. If you do not change your position, that means
neither your family, nor acquaintances nor people who could learn something
from you will change it. Your vote in this election is worth more than you
can imagine."

Myths and stereotypes are the main accompanying factors in the era of the
information society, in which almost all have access to television, and
many, to the Internet. So it is hard to fight: they are disseminated on such
a level that they are accepted as [one's own] thoughts and become personal
views. And at this time some "fashionable" visiting political image maker
sits there with hundreds of thousands of dollars in his hands, received for
his having been able to fool a lot of people, There is one escape don't give
in to lies. Believe what has real shape, in one's own strength and in the
strength of the people.

QUOTE: Yuliya Tymoshenko, MP, head of the Yuliya Tymoshenko Bloc
faction, one of the leaders of the People's Power coalition: "Tomorrow
they'll be saying the opposition are cannibals, but you should not believe
these myths! -30-
=======================================================
ACTION UKRAINE REPORT-04, No.172: ARTICLE NUMBER TWO
=======================================================
2. "50 YEARS LATER, UKRAINE STILL LACKS A FREE PRESS"
Ukraine is the biggest disappointment among the countries
to which Radio Free Europe/Radio Liberty broadcasts.

Thomas A. Dine, President, RFE/RL, Inc.
Speech given in Lviv, Kyiv and Kharkiv, Ukraine
Radio Free Europe, Radio Liberty (RFE/RL)
Prague, Czech Republic, September 22-23, 2004

It is an honor to be here today, and to be in Ukraine to
celebrate the 50th anniversary of Radio Liberty's Ukrainian broadcasting
service. Radio Liberty has been a treasured source of objective news and
information for the people of Ukraine -- for this fact, I am very proud to
be associated with the men and women who have brought first-class
journalism to the airwaves for half a century.

To add glitter to this, I want to acknowledge that fact
that Ivan Franko University in Lviv offers a course on the history of
Radio Liberty.

Occasions such as this anniversary are bittersweet for me,
however, because if Radio Liberty has been broadcasting to the same
country for 50 years, it means that that country has existed without the
benefit of a truly free press during this period of time. Radio Free Europe/
Radio Liberty only broadcasts to countries that do not have the free and
robust media environment that a functioning democracy requires -- in
other words, we only broadcast to countries that need us; when the first
freedom in particular -- speech and press -- is in full bloom and democracy
is successfully established, we go away. And that is why, even though
anniversaries are normally a cause for celebration, it saddens me that the
Ukrainian Service of Radio Liberty is celebrating its 50th anniversary here
today.

Ladies and gentlemen, after five decades, the Ukrainian
people still do not have the full freedoms they deserve.

Of course, Ukraine in 2004 is a vastly better place to be
than it was in 1954. The tyrannical Soviet Union is no more, and its
attempted eradication of Ukrainian culture failed. Ukraine now has a
semblance of political independence and free markets.

But I can tell you that for those of us in the business of
establishing and protecting freedom of speech and press institutions,
Ukraine continues to be a heartache. For example, here's a question for
you: What do Pakistan, Jordan, Azerbaijan, Indonesia, Egypt, and Kuwait
have in common? Yes, they are all Muslim countries. But besides that, they
all, according to the watchdog organization Reporters Without Borders,
have more press freedom than Ukraine.

Let me give you a more personal example: Radio Free
Europe/Radio Liberty broadcasts to 19 countries, and none of them is more
important to us than the others; all people, whether they're from large
nations like Russia or small nations like Armenia, have the right of
unfettered access to news and information. But as the president of RFE/RL,
owing to the lack of real press freedom here in Ukraine, starting with the
murder of Heorhiy Gongadze, I have spent more time over the past four
years dealing with Ukraine than with any other single country. That should
give you some idea as to the condition of press freedom in Ukraine today.

Ukraine is the biggest disappointment among the countries
to which Radio Free Europe/Radio Liberty broadcasts. I say this because,
while we certainly broadcast to countries less free than Ukraine, no other
country's post-Soviet path has diverted so much from the hopes that I, and
other Western friends of Ukraine, had for it.

Ukraine is a great and beautiful country, with immense
potential: a well-educated populace 50-million strong, fertile land,
bustling seaports, and a strategic location between the European Union and
Russia. But corrupt governments have squandered this potential. Staffers at
the U.S. State Department have even invented a term for our feelings of
frustration; it is called in Washington "Ukraine fatigue."

The media environment in Ukraine has one overriding
problem, and it's easy to summarize: an overwhelming majority of radio and
television stations present only pro-government points of view. Let us look
at the three reasons for this that experts who have studied the Ukrainian
media have identified.

The first reason is obvious: almost all national TV and
radio stations are owned or controlled by government officials and their
friends. Two associates of President [Leonid] Kuchma in particular --
Viktor Medvedchuk, the head of Kuchma's administration, and Viktor
Pinchuk, Kuchma's son-in-law -- control a staggering portion of Ukrainian
broadcast-media outlets.

The second reason for the dominance of the government's
point of view on the airwaves is the widespread use of temniki. As I'm sure
all of you know, temniki are secret, unsigned daily memoranda sent by
President Kuchma's administration to editors of the leading state and
private media, instructing them on how to cover a particular story and on
which stories to cover and which to ignore. When the president's office
determines the content of the evening news, that is not freedom -- that is
autocracy. Journalist Andriy Shevchenko put it best when he told your
parliament in 2002, "Television news coverage in Ukraine is done by
remote control."

The third reason for conforming orthodoxy in Ukrainian
broadcasting is the corrupt licensing process. As you know, anyone with a
computer and a printer can start a newsletter or a website. But television
and radio frequencies are a finite commodity that must be allotted by the
government. That is how it works in the United States, and that's how it
works in Ukraine. The problem in Ukraine, though, is that the licensing
authorities favor broadcast entities that promise to be friendly to the
government -- and the process itself is so closed and confusing that
protesting a given decision is futile.

This concentration of media power in the hands of one
political mindset and one political bloc becomes particularly dangerous
during an election campaign. This year, when it is absolutely critical that
voters receive as much objective information about the candidates as
possible, Ukrainian voters are instead getting only one side of the story.
Studies by outside observers have established beyond doubt that on the
TV and radio stations controlled by Mr. Medvedchuk and Mr. Pinchuk,
including Ukrainian state television and Ukrainian state radio, reporters
are providing positive coverage of the candidate Mr. Kuchma supports
and overwhelmingly negative coverage of the candidate the president
most fears.

This is precisely why freedom of the press is essential to
the operation of a democracy: an electorate cannot possibly make informed
choices at the ballot box if the media do not report the whole truth about
the candidates.

President Kuchma thus enjoys a luxury that any political
leader would envy: a media environment that is almost totally compliant.
And this lack of diversity in the media landscape has been exacerbated
by the fact that practicing journalism in Ukraine is so difficult that few
people are willing to do it.

Ukraine, to put it mildly, is not a good place to be a
journalist. Reporters there have more to fear than the censorship and
intimidation that unfortunately plague much of the media in the former
Soviet Union. Ukrainian journalists must also fear for their lives. Since
2000, at least 39 journalists have been killed. Forty-two Ukrainian
journalists were attacked or harassed in 2003 alone -- nearly double the
figure for 2002. And although President Kuchma himself may not be to
blame for all the mayhem that is visited on reporters in his country, there
is strong evidence that he is directly responsible for the most notorious
act of violence against a journalist in recent memory: the cruel and
criminal beheading of Heorgiy Gongadze.

Furthermore, practicing journalism in Ukraine entails
enormous economic burdens. While there is a small group of well-connected
journalists that is very well paid, low salaries are the rule. Expenses such
as computers, transmitters, newsprint, and paper are very burdensome for the
average Ukrainian enterprise. Private media outlets have a limited pool of
advertisers from which to draw extra revenue, and therefore have a hard time
turning a profit.

When you have impoverished media employing impoverished
journalists, the result is a journalistic climate that is extremely
conducive to corruption: People with money can get their stories told and
their views expressed, while people without money cannot. Moneyed
interests -- including government officials -- can manipulate coverage of
their actions, as cash-starved newspapers are offered financial inducements
to tell the payer's side of the story. Call it journalistic bribery.

Meanwhile, the prevalence of organized crime has made
targets of journalists who dare to print the truth about corruption. And
lawsuits against media outlets for defamation are on the rise. In a climate
such as this, when independent journalists face everything from lawsuits to
jail to death, it is almost a miracle that anyone is willing to pursue the
profession.

Radio Free Europe/Radio Liberty has experienced the
hostility of the Ukrainian media environment firsthand. As a broadcast
entity funded in the United States and produced in Prague, we cannot be
intimidated by President Kuchma and his goons. But while Kuchma can't go
after RFE/RL, he can go after our affiliate stations in Ukraine, and that is
precisely what he has done.

The government's crusade against Radio Liberty began in
earnest in January when, after a five-year working relationship, our
Ukrainian-language programs were removed from the FM Dovira network
by the company's new owner, who is a political supporter of President
Kuchma.

Dovira was RFE/RL's major affiliate; it gave us the
ability to reach some 60 percent of the population of Ukraine, including
Kyiv. The explanation given by the new owners -- that RFE/RL news
programs did not fit the envisioned new format of the radio network --
ignored the fact that Dovira listenership was highest when our programs
were on its airwaves. And in fact, authorities later admitted (to Governor
Hirschberg) that the Dovira action was taken for political, not commercial,
reasons.

The attack on Radio Liberty intensified in March, when
Radio Kontynent, an FM commercial station in Kyiv that had begun to air
RFE/RL programming two days earlier, was raided and closed by Ukrainian
authorities. The station's transmission equipment was seized and three
employees were briefly detained. This station also carried the programs of
other international broadcasters, including the Voice of America, BBC,
Polish State Radio, and Deutsche Welle. Serhiy Sholokh, the owner of Radio
Kontynent, fled Ukraine and is now seeking political asylum in the United
States.

On that very same day, an RFE/RL representative was
scheduled to meet in Kyiv with Heorhiy Chechyk, the owner of an independent
FM station in Poltava, to finalize a contract to broadcast RFE/RL programs.
The director was killed in a suspicious automobile accident en route to this
meeting.

RFE/RL continues to broadcast in Ukraine on six
independent radio stations in smaller cities. In addition, our board, the
U.S. Broadcasting Board of Governors, has added additional shortwave
frequencies and begun medium-wave broadcasts into Ukraine in an effort to
continue to provide our popular programming to listeners in Ukraine. But the
Kuchma administration is doing its best to prevent us from gaining greater
access.

Over and over again, owners of radio stations in Ukraine
tell us that they are being threatened by Ukrainian authorities and told not
to take RFE/RL programs. Some station owners who earlier showed interest
now are unwilling even to meet with us. The government has exerted financial
pressure on potential affiliates as well, threatening a tenfold increase in
the licensing fees of any TV or radio station that rebroadcasts foreign
programming. Their tactics, in other words, are no different from those of
the mafia.

The website of RFE/RL's Ukrainian Service,
www.radiosvoboda.org, has a substantial following in Ukraine. But even
our Internet efforts have faced government obstruction. Earlier this year,
RFE/RL attempted to send a "mirror server" to Kyiv, which would have
provided Internet users in Ukraine with much quicker and more reliable
access to the site. Ukrainian customs [officials], however, refused to admit
the server, seizing on a clerical error to accuse RFE/RL of attempted
smuggling. Just looking at the harassment Radio Liberty has faced in
Ukraine, you can see why Reporters Without Borders has given Ukraine
such low marks.

In addition to the problems I mentioned earlier, there is
one more problem plaguing the Ukrainian media environment -- and this
one is the most worrisome of all. It is apathy. Over and over again,
scholars and observers of Ukraine note that when the government interferes
with freedom of the press, the Ukrainian people -- including journalists --
do not protest much. As one Ukrainian journalist has stated, "Freedom of
speech is not valued in our society, and it doesn't cause public outrage"
when it is threatened.

Ladies and gentlemen, if I can leave you today with one
message, it is that freedom of expression does matter. There's a reason that
the founders of the United States put freedom of speech and freedom of the
press at the top of the Bill of Rights. There's a reason that Thomas
Jefferson once wrote, "If it were left to me to decide whether we should
have a government without a free press or a free press without a government,
I would prefer the latter." There's a reason Franklin Roosevelt called it
"the first freedom." There's a reason it occupies an important place in the
Universal Declaration of Human Rights. That reason is that without a free
press, society simply does not work -- and its people cannot prosper.

Newspapers, radio, and television perform two functions
that are absolutely critical: first, they allow a nation's citizens to
engage in an ongoing conversation with one another, and to form intelligent
opinions about how their society should be run; and second, they serve as a
check against government corruption. It is a universal truth of human nature
that power corrupts. A free press is the most important protection we the
people have against government's inevitable tendency to increase its own
power. This is the critical difference between the Communist view of
government and the democratic view of government: the Communists preached
that the government knew best. The democratic view is that because power
corrupts, government cannot be trusted and it therefore must be checked in
every way possible. That is why democracy requires a representative
legislature, independent courts, and, most importantly, a free press.

One of my favorite words in the English language is
"obstreperous." I am told that in Ukrainian it is halaslivy. If you look at
the word's Latin roots -- "ob" -- against, and "strepere" -- to make a
noise -- you can get an idea of what it means: unruly, clamorous, noisy,
defiant. What Ukraine needs more than anything now is for you, the Ukrainian
people, to be more obstreperous. If corrupt officials violate your rights, m
ake some noise. If they shut down the TV stations they don't control, make
some noise. If they send goons to polling places when you're trying to vote
for your local mayor, make some noise. And if they try to steal next month's
election, make some noise. Protest, defiance, noise -- these are the
fundamental ingredients of freedom and democracy.

My fondest wish is for this to be the last anniversary
that Radio Liberty ever celebrates in Ukraine; nothing would make me happier
than for us to become obsolete. But as long as Ukraine lacks a free press,
Radio Liberty will be with you -- if it takes another 50 years, we will not
abandon your cause of real freedom, of real democratic institutions.
Remember, though, that the most important role will be played by you, the
people. Never forget that apathy is the dictator's best friend -- and that
obstreperousness is the dictator's worst nightmare. Ukraine is not totally
free, but on the other hand this is not Saddam Hussein's Iraq nor North
Korea either.

A window was opened when the Soviet Union dissolved and
the nation-state of Ukraine arose again -- and now it's up to you to make
sure that the window stays open, so that Ukraine can at last breathe the
same fresh air that we in the West have been fortunate enough to breathe
for so long. -30-
=======================================================
ACTION UKRAINE REPORT-04, No.172: ARTICLE NUMBER ONE
=======================================================
3. UKRAINE'S PRESIDENTIAL ELECTION AND POISONING OF
PRESIDENTIAL CANDIDATE VIKTOR YUSHCHENKO

Statement by Congresswoman Marcy Kaptur (D-OH)
U.S. House of Representatives, Washington, D.C.
Wednesday, September 22, 2004

Ms. KAPTUR. Mr. Speaker, shortly our country will experience an
extraordinarily important Presidential election, and this evening I wish to
discuss another important Presidential election that is occurring very far
from the United States this year as well. That is in the nation of Ukraine,
one of the nations that was spun out of the collapse of the Soviet Union.
And make note of the very close presidential race ongoing in that country
which is struggling its way forward.

Recently in USA Today, there was a story that one of the leading candidates,
Viktor Yushchenko, became ill and on September 6 was hospitalized in
Austria. And the doctors there, a panel of nearly a dozen doctors,
determined indeed that he had been poisoned.

Prosecutors in Ukraine said in a statement they were investigating charges
of attempted murder. Attempted murder of a presidential candidate in a
nation whose independence is only a little over 10 years old.

In an address to deputies in the parliament in that country this week,
candidate Viktor Yushchenko appeared haggard, his face was red and
swollen; it was partially paralyzed with one of his eyes constantly tearing
up. And I wish to read this evening some of what he told his fellow deputies
in that parliament in a emotional speech.

He said to take a good look at him to make sure that the same thing did not
happen to any of them, because the problem he was bearing was not one of
cuisine, not a problem of food, as some had tried to portray his plight. And
he advised his colleagues, Do not be so quick to judge. I would like to ask
every one of the 450 parliament members in the chamber, have you ever seen
me drunk over the past 10 to 20 years? Raise your hands if you have. And no
one did.

And then he pointed at all of the government-controlled media, Inter, UT1,
and One Plus One, and asked them, Have you ever in your life seen me not
in control of myself? Because there had been references on that television,
government controlled, that his illness was caused by food poisoning or
perhaps alcohol. But he said, What happened to me was not a problem of
cuisine or a problem of diet, but rather as soon as you fall out of favor
with the authorities of Ukraine and as soon as you start posing a tiny
threat, and indeed he is tied in the polls with the current president of
that country, they will throw you away like a piece of paper.

He said, Friends, we are talking about the Ukrainian political kitchen where
assassinations are ordered. Remember, he said, former National Bank chairman
Vadym Petrovych Hetman walking around alive in this chamber in 1998. Who
killed him? President Kuchma said it was a question of honor for him, that
the prosecutor-general will give an answer and tell us who the killer is.
Time has passed, and there is no answer.

In 1991 right-wing leader and presidential candidate Vyacheslav Chornovil
was in that chamber alive. We pretend we do not know who killed him with a
Kamaz lorry. But in 2000 as well, campaigning journalist Heorhiy Gongadze
was sitting in the balcony, as our press sits here in this Congress, writing
political reports. Well, who cut his head off? We do not seem to know,
Viktor Yushchenko said.

Although one prosecutor said once that the killer has already been found and
that his surname begins with the letter K, but he was not brave enough to
give us a few more letters.

Two and a half years ago, opposition parliamentarian Oleh Oleksenko was
sitting in the chamber. Who poisoned him? Four weeks ago Alik Aslanov was
sitting among us in that chamber. But with his last borrowed seven and a
half hryvnyas, the last loan in his life, he bought a liter of petrol and
burned himself. Who killed him? The alcoholic head of the district
administration who represents the United Democrat Party or the arrogant
head of the collective farm? Who killed him?

Do not ask who is next. Every one of us will be next. And if you ask how
this fate spared me, I will say, wrong dose, wrong time and my angels awake.
That is what helped me return back to the living.

Let us draw a couple of lessons here. Lesson number one, I would really
like us to receive an answer. Who did it and who is the killer? But you know
very well who the killer is. The government is the killer. And never will
this prosecutor-general give an answer to who killed Gongadze, who killed
Hetman, and who tried to kill many others.

Let us draw a political lesson and appeal to you, my dear people's deputies.
Show a little heroism today for Ukraine's sake and you will see Ukraine
democratic and its people free and prosperous. Do not forget this lesson or
this lesson will get you.

These very compelling words are placed here, the citadel of freedom, by
Viktor Yushchenko, presidential candidate in Ukraine, who is fighting, not
just for his life but for the future of freedom in his nation. -30-
----------------------------------------------------------------------------
FOOTNOTE: You can see Congresswoman Kaptur's speech by
downloading the video clip on the right hand side of the following
webpage --
http://www.brama.com/news/press/2004/09/040923kaptur-yushchenko.html.
The complete text of Viktor Yushchenko's speech can be found in article
number one of The Action Ukraine Report #170 for Wednesday, September
22, 2004.The text we published with our editing has been seen republished
many times in media sources around the world.
=======================================================
ACTION UKRAINE REPORT-04, No.172: ARTICLE NUMBER FOUR
=======================================================
4. AN ASSASSINATION ATTEMPT?

EDITORIAL, Kyiv Post, Kyiv, Ukraine, Thursday, Sep 23, 2004

As outrage follows outrage during this Ukrainian election season, we're
finding language is failing us. After having expressed our disgust in this
space with any number of examples of violence and fraud on the part of the
authorities, we now find it likely that opposition candidate Viktor
Yushchenko had actually been poisoned when on Sept. 6 he fell ill with a
mysterious illness. What words can we now use that will express our
contempt and anger?

In case the idea of poisoning seems quaint - raising the amusing specter of
a bad clam or too much booze - let's put it into perspective. What happened
to Yushchenko is exactly the same as if politically motivated thugs bashed
his skull in with clubs, but somehow failed to finish him off; or shot him
full of bullets, but missed the crucial part of his brain. If the suspicions
are borne out, it was an attempt to murder him.

We probably aren't the only ones who have suspected over the past year that
elements in the Ukrainian power structure might kill Yushchenko. But that
suspicion has always been broached among us in a tone of disbelief, as a
worst-case scenario. Bad as things were, they couldn't come to that, could
they?

Now they almost have. It would be as inane for us to call on Western
governments and organizations to decry this attempted murder as it would
for the Ukrainian authorities to "investigate" it. Brussels' and
Washington's representatives will no doubt declare their opposition to
killing people; and then things will go on in the same brutal fashion that
they did before.

Or maybe not. If there's a silver lining to this cloud, it's the stirring
manner in which Yushchenko has rallied from his sickness. On Sept. 18,
just hours after being released from the hospital in Vienna, he rousingly
addressed 30,000 people at a European Square rally in his honor, defiantly
announcing - even though he could barely stand up - that "people in power
are afraid of the people of Ukraine." Just his making it to the rally was a
galvanizing event.

Then, on Sept. 21, Yushchenko took the Rada podium and - his face
palsied, gaunt and ashen, looking a wreck after his illness - delivered an
impassioned speech that penetrated to the core of the political evil that
envelops Ukraine. "[Y]ou know very well who this killer is - the
authorities," he declared, after rhetorically asking the hall who was
responsible for the rash of political killings that have afflicted Ukraine.
(See Page 3 for a complete transcript of Yushchenko's speech.)

With these performances, Yushchenko seized the moment. This week might
be seen as a watershed moment in the presidential campaign - when the
national disgust with the current political situation crystallizes as a
desire for change.

Needless to say, Ukraine needs Yushchenko to win. Horrible as it is to say
it, we hope he's taking the precautions necessary to make sure he stays
alive. -30-
=======================================================
ACTION UKRAINE REPORT-04, No.172: ARTICLE NUMBER FIVE
=======================================================
5. POLISH AMBASSADOR SAYS UKRAINE NEEDS GOOD RELATIONS
WITH RUSSIA THAT WILL NOT HINDER ITS PATH WEST

By Marek Ziolkowski, Poland's Ambassador to Ukraine
Writing in Rzeczpospolita; Polish News Bulletin; Thu, Sep 23, 2004

Ukraine's presidential campaign has revealed the country's domestic and
foreign policy dilemmas, and at a time when EU enlargement prompts a
reflection on the significance of the Polish-Ukrainian partnership in a new
situation, writes Marek Ziolkowski, Poland's ambassador to Kiev, in
Rzeczpospolita.

In the present-day international politics, Poland's partnership with Ukraine
has produced tangible benefits, writes Ziolkowski. However, we expect the
hitherto effects of cooperation in Central and Eastern Europe to be cemented
by political and economic modernisation at our eastern neighbours. We need
contemporary Ukraine's success in building its statehood, developing a
political thought, cementing democracy and modern-day economy. On the eve
of the Ukrainians' choice, one can point to the opportunities and threats of
a favourable scenario of their country's development.

UKRAINE'S POLITICAL GEOGRAPHY
The populational and economic potential of Ukraine's individual regions,
their relations with the centre, their national specificity and historical
tradition are a matter of debate for the Ukrainian political elites. It is
being suggested that the country in fact divides into two parts, an eastern
one and a western one. In reality, Ukraine is more cohesive today that some
of the country's own analysts would like to see it.

The country's growing together has been a result of processes that, though
begun only 13 years ago, have been very intense. These include educational
policies, an ukrainisation of culture and the mass media, as well as of
social and economic life. These processes have resulted in the Ukrainian
statehood's gradually permeating into the everyday life of the country's
citizens. This does not have to mean a deepening national identity, but it
certainly means an identification with the Ukrainian state.

Ukraine has skilfully extinguished all possible religious or national
conflicts. With many religious issues still unregulated, Ukraine remains a
tolerant country. Also its ethnic policy has relatively harmoniously
eliminated the threat of separatist movements. The difficult dialogue with
the Crimea Tartars should not obscure the fundamental fact that Kiev's
decision to recognise the Tartars' right to return to the peninsula was just
and bold.

Government in Kiev is today held by the economic and political elites of
eastern Ukraine's industrial centres. Western Ukraine, a region where the
ideas of Ukrainian independence have always been the strongest, and one
that Poles know so well, lacks such significance. This situation is a result
of the 1994 election victory of president Leonid Kuchma, who comes from
Dnepropetrovsk, and who was followed to the centre by politicians from
Donetsk or Kharkov. That process is justified by eastern Ukraine's economic
and populational potential. Western Ukraine is economically less
developed. -

QUESTIONS ABOUT EUROPE
EU enlargement, which in Poland was greeted with the "Ode to Joy," in
Ukraine has been commented on rather bitterly.

The Polish-Ukrainian border, with its long queues for passport and customs
clearance, has become a symbol not of cooperation with Europe but of
Europe's rejection of Ukraine. The Ukrainians believe that a "velvet
curtain" has been hung on the border ? a symbol of the barriers, different
standards, and EU politicians' "velvet" rhetoric separating Ukraine from
Europe. Ukraine's new political myth after May 1, 2004 is that the Central
and Eastern European countries have seized upon the opportunity given to
them without offering enough political support to Ukraine. As Poland reached
the goal, Ukraine started doubting the goal itself.

While the longing for Europe is visible even in everyday language, with
affluent Ukrainians unable to imagine their life without a "euro-car" or a
"euro-standard" apartment, there is more restraint in the political
decisions aimed at determining how Ukraine should join the European
common market, or the area of common political or civic rights standards.

Some Ukrainian politicians believe that the EU is not the only effective
method of economic and political integration in Europe. Opinions have
been heard narrowing the reflection on European policy to the question
of a "Europe that doesn't want Ukraine." Despite that, the European idea
remains important in the debate on Ukraine's international situation.

Another area being explored are Ukraine's relations with Russia. It is
understandable that Ukraine wants to have a good partner in Russia, and
use the economic and social ties with it to aid its own growth. Yet the
Ukrainian political elites are undecided whether or not Kiev should also
synchronise its European policy with Moscow. In the background of this
debate are Ukrainian politicians' problems with deciding the pace at which
the Ukrainian economy should be opening itself to the European market, or
joining the global economy. None of the major presidential contenders
presents themselves as solely pro-Russian or solely pro-European. What
Ukraine should be wished are excellent relations with Russia that, however,
will not hinder the country's path west.

PRESIDENTIAL ELECTION
Poland has been more involved in policy towards Ukraine than many other
European countries. As far as Ukraine's presidential election is concerned,
however, Poland has as much to say as the other EU states. This fact, among
other things, shows that Poland's eastern policy is important as part of the
EU policy. On the one hand, it broadens the horizon of Poland's capacity in
foreign policy, and on the other, Poland can be original in the EU's eastern
policy only if it proves a valuable partner in other areas of EU
cooperation.

Poland is unanimous with its EU and Nato partners in its perception of the
Ukrainian presidential ballot. It is interested above all in the election
being held in a democratic and fair way. Poland and its partners are also
interested in Ukraine's modernisation and democratisation, and its'
developing closer ties with Europe.

What ideas will the pending campaign reveal? Will it be limited to a
ruthless fight for power and influence, or will it give the Ukrainian people
a positive vision of innovation and change? These questions are also
important for Poland. Above all, however, Poland should be interested in
these questions being answered by the Ukrainian voters. mw -30-
=======================================================
ACTION UKRAINE REPORT-04, No.172: ARTICLE NUMBER SIX
=======================================================
6. UKRAINE WILL IMPROVE ACCESS TO HIGH-QUALITY HIV/AIDS
MEDICINES AND DIAGNOSTICS AT LOWER PRICES THROUGH
PARTNERSHIP WITH CLINTON HIV/AIDS INITIATIVE

Clinton HIV/AIDS Initiative; Health of Ukraine
Elena Franchuk of ANTIAIDS Foundation
Kiev, Ukraine, Thursday 23 September 2004

KIEV - The Minister of Health of Ukraine, and the Clinton HIV/AIDS
Initiative announced today that Ukraine has joined the Clinton HIV/AIDS
Initiative Procurement Consortium. This partnership will pave the way for
Ukraine to purchase high-quality AIDS medicines and diagnostics at the
lowest available prices in the world and, as a result, rapidly scale up its
national care and treatment program for people living with HIV/AIDS. The
Clinton HIV/AIDS Initiative was invited to Ukraine by the Elena Franchuk
ANTIAIDS Foundation, which is an active player in HIV/AIDS issues in the
country.

Ukraine is the country the most affected by HIV/AIDS in Eastern Europe.
According to the World Health Organization and UNAIDS, approximately
1% of the total population of 48 million is living with HIV/AIDS, and the
epidemic is growing quickly, especially among people between the ages of
20 and 39. Recognizing the urgency of the situation, the Government has
taken active steps to implement an integrated prevention, care and treatment
strategy.

The country launched a program to scale up antiretroviral treatment in
August 2004, and by October 2004 the Government expects 2100 people
to be on treatment. According to Ministry of Health data, at least 4000
people currently need treatment. With access to drastically reduced prices
for antiretroviral drugs (ARVs) and diagnostic tests under the Clinton HIV/
AIDS Initiative, the Government is better positioned to meet the total
need and effectively combat the spread of the epidemic.

Elena Franchuk the founder of the "ANTI-AIDS" Foundation said: "The high
cost of ARV's (antiretroviral drugs) are the main obstacle to expanding
national prevention and treatment programs for people living with HIV/AIDS.
The opportunity to treat more patients for the same amount of money provides
hope for many people, who haven't had access to the ARV-treatment. Ukraine
is the most affected country in Eastern Europe by HIV/AIDS. According to
Ministry of Health data, at least 4000 people currently need treatment. We
must do everything possible to save lives of those that can be saved and
provide access to high-quality care and treatment."

The prices for ARVs negotiated by the Clinton HIV/AIDS Initiative are
one-third to one-half of the lowest price otherwise, training, reagents and
maintenance and are up to 80% cheaper than otherwise available on the
market.

At first, the deals were available in the 16 countries in the Caribbean and
Africa in which the Clinton HIV/AIDS Initiative is active. Subsequent
agreements with the Global Fund to Fight AIDS, Tuberculosis and Malaria; the
World Bank; WHO; UNICEF; and the International Dispensary Association
(IDA) extended eligibility to many more countries throughout the developing
world where these institutions are engaged in the battle against HIV/AIDS.
To date, more than 20 countries have purchased drugs or diagnostics at the
reduced prices.

After signing a Memorandum of Understanding between the Ministry of Health
of Ukraine and the Clinton HIV/AIDS Initiative, Andrei Pidaev, Minister of
Health, announced that the budget for the purchase of ARVs in 2005 has been
doubled. He said, "With these increased funds and membership in the Clinton
HIV/AIDS Initiative Procurement Consortium, the Government of Ukraine can
purchase larger quantities of ARVs and expand access to care and treatment
throughout the country. We have been working hard to combat the HIV/AIDS
epidemic, but today, we've added an important new component to our effort
that will help us move closer to victory."

Speaking on behalf of the Clinton HIV/AIDS Initiative, Jennifer A. Lissfelt,
Regional Manager, said, "We are very pleased to enter into this partnership
with Ukraine, and are impressed by the commitment and efforts already under
way here. Ukraine is at a critical juncture in the spread of HIV/AIDS, and
with this partnership, the government is demonstrating its determination to
contain the epidemic and to provide high-quality care and treatment to those
infected. We look forward to working with the Ministry of Health and their
other partners to combat HIV/AIDS."

The Clinton HIV/AIDS Initiative is at work helping countries in Africa, Asia
and the Caribbean dramatically increase the number of people with HIV/AIDS
receiving high-quality care and treatment. It assists governments in
developing operational plans for integrating care and treatment into public
health systems. Implementation support in program management, monitoring
and evaluation, training, and procurement planning is also provided.

Additionally, the Clinton HIV/AIDS Initiative is working to change the
economics of HIV/AIDS care and treatment. The first agreements it brokered
in late 2003 and early 2004 have dramatically reduced the prices of ARVs and
AIDS diagnostics. For more information about the William J. Clinton
Presidential Foundation and its HIV/AIDS Initiative, please visit:
http://www.clintonfoundation.org. -30-
----------------------------------------------------------------------------
FOOTNOTE: Elena Franchuk is the wife of Viktor Pinchuk, wealthy
Ukrainian businessman and member of parliament and the daughter of
Ukrainian President Leonid Kuchma. (EDITOR)
========================================================
ACTION UKRAINE REPORT-04, No.172: ARTICLE NUMBER SEVEN
========================================================
7. ILLICHIVSK PORT TO BOOST GRAIN TRANSHIPMENT
CAPACITIES 60% TO 8 MILLION TONS A YEAR BY NOVEMBER

Ukrainian News Agency, Kyiv, Ukraine, September 20, 2004

KYIV - The Illichivsk merchant seaport (Odesa region) intends to increase
its grain cargo transshipment capacities by 60%, or 3 million tons, up to 8
million tons a year by November. The port announced this intention in a
report, whose text Ukrainian News has.

"The current transshipment capacity of the complex is over 5 million tons a
year. Completion of the construction of the third stage of the elevator at
the specialized transshipment complex will make it possible to increase the
capacity up to eight million tons," the report reads.

Respectively, the current capacity of one-time storage, 140,000 tons, will
be increased to 200,000 tons, which will enable the port to have the most
powerful elevator in the Black Sea region.

"The construction is designed for Ukrainian grain exports, as well as Kazakh
and Russian transit. Its purpose is to accumulate grain batches for loading
aboard Panamax-type vessels," the report says.

Currently, two berths of the complex (200 meters long and 11.5 meters deep)
make it possible to load simultaneously two vessels with a bearing strength
of up to 60,000 tons each at a speed of up to 900,000 tons an hour. In the
perspective, dredging of up to 14 meters is planned for servicing 100,000
-ton vessels.

The construction is financed by the grain terminal owner, Estron Corporation
Ltd (Cyprus); the sum of investments is around USD 15 million.
As Ukrainian News reported, in August 2002, the Illichivsk merchant port
boosted its grain transshipment capacities 100%, or by 2.5 million tons, up
to 5 million tons.

Illichivsk merchant seaport (Odessa region) reported net profits of UAH
30.597 million for 2003. Illichivsk seaport is a major Ukrainian port
standing on the crossing of three largest international transportation
corridors. The port is capable of processing 24 million tons of cargo a
year. -30-
========================================================
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