"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"
GETTING DOWN TO BUSINESS
Time for Yushchenko Government to Implement More Reforms
to Create Better Business Environment
"THE ACTION UKRAINE REPORT" - Number 460
E. Morgan Williams, Publisher and Editor
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C. and Kyiv, Ukraine, MONDAY, April 11, 2005
-----INDEX OF ARTICLES-----
"Major International News Headlines and Articles"
1. UKRAINE SET TO DROP BARTER TRADE
Kiev plans to pay for gas imports from Russia with dollars
By Judy Dempsey, International Herald Tribune (IHT)
Europe, Monday, April 11, 2005
2. UKRAINE DRAWS LOOK FROM INVESTORS
MarketWatch by Barbara Kollmeyer, The Wall Street Journal
New York, New York, Thursday, April 7, 2005
3. UKRAINE PM SLAMS OPPOSITION OVER JAILED OFFICIAL
Associated Press (AP), Kiev, Ukraine, April 11, 2005
4. POLAND, UKRAINE LEADERS MEET DISCUSS EU, BILATERAL TIES
Yushchenko will visit the grave of Ukrainian poet Mykhailo
Verbytski, author of the country's national anthem
AP, Warsaw, Poland, Monday, April 11, 2005
5. EBRD PLEDGES TO DOUBLE LOANS FOR UKRAINE IN 2005
UT1, Kiev, in Ukrainian 1550 gmt 8 Apr 05
BBC Monitoring Service, UK, in English, Friday, April 8, 2005
6. UKRAINE MACROECONOMIC SITUATION - MARCH 2005
SigmaBleyzer Monthly Ukrainian Economic Report
By Iryna Piontkivska, Edilberto L. Segura
SigmaBleyzer, Kyiv, Ukraine, April 2005
7. UKRAINE TO EASE TAX BURDEN VIA NEW BILL MERGING
ALL SOCIAL TAXES INTO ONE 20 PERCENT TAX
New Europe, Athens, Greece, Monday, April 11, 2005
8. UKRAINIAN PM ATTACKS "OLIGARCHS," THEY FACE AUDITS
Government will raise railway freight charges
Interfax, Kyiv, Ukraine, Saturday, April 9, 2005
9. UKRAINE: US EMBASSY HOSTS INVESTMENT CLIMATE SEMINAR
Tuesday, April 12 from 10:00 a.m. to 12 p.m.
Public Affairs Section, U.S. Embassy in Kyiv
Kyiv, Ukraine, Thursday, April 7, 2005
10. WESTERN NIS ENTERPRISE FUND (WNISEF) PURCHASES
CONTROLLING STAKE IN SHOSTKA MILK PLANT
Western NIS Enterprise Fund (WNISEF)
Kyiv, Ukraine, Wednesday, April 6, 2005
11. UKRAINE ECONOMY SEEN HEADING IN RIGHT DIRECTION
By Barry Wood, Voice of America (VOA)
Washington, Wednesday, 06 April 2005
12. MAJOR EGYPTIAN GRAIN PROCESSOR WADI HOLDINGS
INTERESTED IN SUPPLIES OF GRAINS AND OILSEEDS FROM UKRAINE
AgriMarket.Info, www.agrimarket.info
Dnipropetrovsk, Ukraine, Friday, April 8, 2005
13. UKRAINE PLAYS DOWN SCANDAL WITH BELARUS, CUBA
ITAR-TASS, Moscow, Russia, Friday, April 8, 2005
14. THE POSTCARDS (VIDEOS): UKRAINE AND ITS PEOPLE
A total of 50 videos is currently being produced
By Sietse Bakker, Eurovision2005.info., Sunday April 10, 2005
15. BELEAGURED SOVIET DISSIDENT YURI ABRAMOV LEARNS
HIS DAUGHTER IMPRISONED IN UKRAINE
By Peter Johnson, Tribune Staff Writer, Great Falls Tribune
Great Falls, Montana, Monday, April 11, 2005
16. PHOTOGRAPHS OF YUSHCHENKO'S VISIT TO WASHINGTON, D.C.
THE ACTION UKRAINE REPORT
Washington, D.C., Sunday, April 10, 2005
17. PROMOTING A ROBUST U.S.-UKRAINE AGENDA-SECURING
THE ORANGE REVOLUTION IN UKRAINE
United States Senate Republican Policy Committee
Jon Kyl, Chairman, Lawrence Willcox, Staff Director
347 Russell Senate Office Building
Thursday, March 31, 2005, Washington, DC 20510, http://rpc.senate.gov
=============================================================
1. UKRAINE SET TO DROP BARTER TRADE
Kiev plans to pay for gas imports from Russia with dollars
By Judy Dempsey, International Herald Tribune (IHT)
Europe, Monday, April 11, 2005
BERLIN - Ukraine, dependent on its energy supplies from Russia, intends
to replace a corrupt barter system used to obtain gas from Russia's giant
state-owned monopoly Gazprom with accounts in dollars, according to
energy analysts.
The decision to switch from a barter to a financial or monetized system
could spur economic reforms and transparency and could help the efforts
to curb corruption promised by the recently elected President Viktor
Yushchenko.
"Yushchenko wants Ukraine to start paying for its gas in dollars," said Ivan
Poltavets, energy analyst at Kiev's Institute for Economic Research and
Policy Consulting. "He wants to end barter to achieve transparency. He wants
to put relations with Russia on a much more pragmatic basis because both
sides have become tired of the political approach."
Yushchenko's overtures to President Vladimir Putin of Russia, made in
February during his first foreign trip since being sworn in as president,
comes at a critical time for Ukraine.
The country is seeking much closer relations with the European Union, its
direct neighbor, but also wants to improve its ties with Russia, on which it
is almost completely dependent for its gas supplies. The EU has repeatedly
criticized the widespread corruption in Ukraine's economy.
In addition, since the Union relies on Ukraine as the biggest transit route
for Russian gas exports to Europe, the EU wants assurances from Ukraine
that it can guarantee secure transport of gas. This has become a top
priority for the EU and particularly for Germany, which depends on
Russian gas for 32 percent of its domestic consumption.
The issue will be raised Monday in Hannover, at one of Germany's largest
trade fairs, when Chancellor Gerhard Schröder will hold talks with Putin and
Aleksei Miller, head of Gazprom.
Agata Loskot, Russian expert at the Center for Eastern Studies in Warsaw,
which is supported by the Foreign Ministry, said Gazprom was desperate to
reassure its European clients that it can always guarantee such supplies.
"The chief objectives of Russia's gas policy is to increase the market share
of Russian gas. In order to achieve this objective, Gazprom has to ensure
stability and reliability of gas supplies," Loskot argued in a new report
called "Security of Russian Gas Supplies to the EU."
This is where Ukraine plays a crucial role. Gazprom is dependent on Ukraine
and vice versa. Over 80 percent of Ukraine's energy needs are supplied by
Russia and 85 percent of Gazprom's exports to Europe are transported
across Ukraine.
The new system, however, would be initially costly for both sides. Poltavets
said Gazprom would charge Ukraine $80 per 1,000 cubic meters, or 35,300
cubic feet of gas, an increase of around $30 from the amount charged this
year. In return, Ukraine would charge Gazprom between $1.75 and $2 per
1,000 cubic meters per 100 kilometers for using Ukraine as a transit route.
Despite the higher costs, Poltavets said that if corruption in the energy
sector were stamped out, it could make up for the extra amounts of gas
Ukraine had to import in the past because of theft. It would also put
pressure on enterprises to become more efficient in their use of energy.
Other analysts say the extra receipts Ukraine would receive from Russia for
transit costs could allow Naftogas Ukrainy, the state-owned Ukrainian oil
and gas company, to invest in the transit gas pipeline, which needs
upgrading.
"Both sides could gain," said Andrew Neff, senior energy analyst at Global
Insight, an independent consultancy in Washington. "Gazprom could sell
more to Europe. Ukraine could earn more from having extra capacity in the
existing pipeline."
During the last years in office of former President Leonid Kuchma of
Ukraine, the relationship between Gazprom and Ukraine had become bitter,
largely because of the corruption. During the 1990s, gas traders in Ukraine
siphoned off gas from the transit pipeline, which meant that Ukraine had to
import more from Russia to compensate for such theft while Russia also
had to pump more gas to Europe.
"The annual barter deals lacked any transparency," said Neff. "Ukrainian
gas traders often stole gas from the pipelines. Yushchenko now wants full
transparency and wants to end this barter system because it encouraged
corruption and damaged Ukraine's reputation."
Additionally, Ukraine accumulated large debts through this barter system
as a result of rising gas prices that were set off against the export of
industrial goods to Russia and low gas transit prices.
"Over time, Ukraine ran up $1.4 billion in debts," says Poltavets. "Both
this debt and the constant theft caused Gazprom to plan the North European
Gas Pipeline that would directly link Russia to Europe via an underwater
pipeline. It would reduce Russia's dependence on Ukraine. It would increase
diversification and ensure secure energy supplies to Europe, but building
this pipeline would cost between $8 billion and $10 billion."
Yushchenko became so concerned about the prospect of a such a pipeline
bypassing his country that he made Russia his first official visit as soon
as he was sworn in as president in February.
If gas transits through Ukraine could be made to work better, building the
North European Gas Pipeline may not be in the interest of Russia or the EU.
Analysts say that for technical reasons, an underwater pipeline will have
only limited capacity. Russia, however, would expect its European partners
to pick up most of the construction costs. -30-
=============================================================
2. UKRAINE DRAWS LOOK FROM INVESTORS
MarketWatch by Barbara Kollmeyer, The Wall Street Journal
New York, New York, Thursday, April 7, 2005
LOS ANGELES -- The White House rolled out the red carpet this week for
new Ukrainian President Viktor Yushchenko. International investors, however,
already have given the country a warm reception.
Last year's so-called Orange Revolution ushered in Mr. Yushchenko and a new,
pro-Western government, and the transformation is spreading to Ukraine's
financial markets. At Dragon Capital, a major investment bank based in the
capital of Kiev, the benefits are clear. "Liquidity has increased more than
five times in local stock markets and prices have doubled to tripled for
most of the traded stocks we have had," managing director Tomas Fiala said.
In the last three months, new U.S. and European investors have opened
accounts with Dragon Capital, Mr. Fiala said. That's significant for a
country whose stock exchange lists only 10 major companies.
To be sure, Ukraine's tiny stock market was already rising before the
dramatic events that culminated in wide election protests last November. The
PFTS Index, a capitalization-weighted index of the most liquid stocks traded
on Ukraine's PFTS Stock Trading System, more than tripled in 2004. The index
weathered a correction early in 2005 and is still up 8% for the year.
Higher commodity prices helped some of Ukraine's resource stocks, while an
improved economy also drove the market higher, Mr. Fiala said. The surge has
left stocks more expensive, but he said there are opportunities for value
and "the stocks still trade at good discounts."
Investors, Mr. Fiala said, are waiting for government policies to improve
the overall business climate. "That will provide another boost to the market
to move up again," he added.
Outside of Russia, there aren't many investment opportunities in the former
Soviet bloc. The Baltic states of Latvia, Estonia and Lithuania, which were
admitted to the European Union last year, are considered more developed
economically and politically.
Ukraine isn't expected to be admitted to the EU for another decade at least.
Meantime, investors in Ukraine are hopeful that corporate governance under
the new administration will improve.
One problem plaguing Ukraine companies, particularly in the steel sector, is
an uneven distribution of profits because of "transfer pricing" -- selling
products at cheaper prices to offshore companies that then turn around and
sell the same products for full market prices.
That cuts Ukrainian firms out of full profits -- and the country out of tax
benefits, Mr. Fiala said. "We think that will change and Ukraine will become
a much more transparent market that will work according to European
standards," he said.
Electric utilities, poorly managed in the past, could benefit most under
improved governance. Ukrnafta, the country's largest oil and gas company,
which supplies 5% of Ukraine's resources, has benefited from strong oil
prices and pays high dividends, Mr. Fiala said. Steelmaker Zaporozhstal also
has gained from strong commodity prices.
Few U.S. fund managers invest in Ukraine . Last year's revolution, though,
captured the attention of John Connor, who now has four Ukraine-related
stocks in his Third Millennium Russia fund. These include electric utility
Donbasenergo, Zaporozhstal, brewer Slavutich Pivzavod (majority-owned by
Finnish-Swedish concern Baltic Beverages Holding), and Stirol, a world
leading fertilizer producer and exporter.
"We put our finger up in the wind and decided that if people are beginning
to look around the [Commonwealth of Independent States - the former Soviet
Union minus the Baltics], we wanted to be there too," Mr. Connor said.
"Ukraine is going to be one of the top markets in terms of risk of ownership
and transparency of company's results," he said. "It'll take them a few
years to get there, but I think there's a real determination to be a solid
European-type corporate culture."
Any emerging market involved heightened risks. Vladimir I. Milev, investment
analyst with Metzler/Payden in Los Angeles, said the firm is considering
Ukraine but so far has restricted investments in former Soviet countries to
one Estonian company in its Metzler/Payden Europe Emerging Markets fund.
Mr. Milev said much of Ukraine's 12% economic growth last year was due to
Russian demand for natural resources. There's concern that Ukraine's new
pro-Western status could affect the country's relationship with Russia and
impact its companies, he added. Ukraine also faces parliamentary elections
in March 2006, when Mr. Yushchenko's government will try to shore up
support, he said.
"The government doesn't have a very long time to implement" changes, Mr.
Milev noted. "The one issue they need to address is inflation."
The biggest deterrent Mr. Milev sees to Ukraine investment is a lack of
liquid stocks. Sector choices are mostly limited to resources, and few
compelling valuations exist even when compared with Romania or central
Europe, he said. But Ukraine could be a bigger player in the future: "It's
useful to look at earlier convergence countries like Spain when it wasn't a
member of the European Union. I don't think there's any investor now who
doesn't think Spain is a viable investment these days," he said.
Mark Mobius, manager of the Templeton Developing Markets fund, said he's
keeping a close eye on Ukraine's market but is wary because of last year's
huge stock run-up. "Ukraine needs a market with much better liquidity and
continuing economic and political reform," he said. "Russia is much more
advanced from a capital market point of view. However, Ukraine could
become much more viable and important."
----------------------------------------------------------------------------------------
Write to Barbara Kollmeyer at barbara.kollmeyer@dowjones.com
=============================================================
3. UKRAINE PM SLAMS OPPOSITION OVER JAILED COUNCIL OFFICIAL
Associated Press (AP), Kiev, Ukraine, April 11, 2005
KIEV - Ukraine 's prime minister criticized opposition leaders Monday for
trying to rally protests in support of a jailed regional official from
eastern Ukraine , saying they were trying to politicize a criminal case.
Yulia Tymoshenko also pledged the government wouldn't interfere in criminal
proceedings against Boris Kolesnikov, whose arrest prompted protesters to
erect a small tent city in downtown Kiev in hopes of starting
anti-government demonstrations.
The detention of Kolesnikov, who heads the Donetsk regional council, has
touched a nerve in eastern Ukraine , where the threat of an east-west
division of the country came to the fore during last year's tumultuous
presidential election. Prosecutors ordered Kolesnikov arrested last week
on suspicion of plotting assassinations, extortion and fraud.
Kolesnikov is a staunch backer of former prime minister Viktor Yanukovych,
who lost the presidential election battle to Viktor Yushchenko after
hundreds of thousands of opposition supporters flooded Kiev and built a
tent city to protest a fraudulent first round of balloting. Since losing,
Yanukovych has vowed stiff opposition to Yushchenko's government.
On Sunday, Yanukovych tried to rally his backers for more protests, warning
of transportation blockades and strikes if the authorities continued
"repression against our allies." Tymoshenko shrugged off Yanukovych's
demands Monday. "If they want to be collectively responsible for someone's
crimes, that's up to them," she told a news conference in Kiev. "The days
when the (former) government was ordering who to arrest and who to release
are now gone ... only the courts can decide about Kolesnikov." -30-
=============================================================
4. POLAND, UKRAINE LEADERS MEET DISCUSS EU, BILATERAL TIES
Yushchenko will visit the grave of Ukrainian poet Mykhailo
Verbytski, author of the country's national anthem
AP, Warsaw, Poland, Monday, April 11, 2005
WARSAW - Ukrainian President Viktor Yushchenko Monday met with
his Polish counterpart to discuss Warsaw's support for Kiev's European
aspirations and to thank Poles for support in last year's disputed
presidential election, Polish President Aleksander Kwasniewski's office
said.
Kwasniewski helped mediate a democratic solution to Ukraine 's
disputed presidential elections last fall, in which Yushchenko beat a
Moscow-backed competitor in a revote.
"I appreciate very much what Poland and, most of all the president,
are doing in supporting our efforts to join the European Union,"
Yushchenko told Poland's Gazeta Wyborcza daily.
Warsaw has been consistently in favor of Ukraine 's E.U. membership,
but the E.U. hasn't talked about beginning negotiations yet. Poland and
nine other mostly former communist nations joined the E.U. last May.
Talks were also expected to include economic ties between the
countries and the long-proposed extension of a Ukrainian pipeline into
Poland to bring Caspian Sea oil to Europe. Poland sees Caspian Sea oil
imports as a chance to limit its dependence on Moscow for energy sources.
Yushchenko was to meet later Monday with Prime Minister Marek Belka.
Tuesday, Yushchenko will meet with the students of Warsaw University
and will travel to the southeastern village of Mlyny to visit the grave of
Ukrainian poet Mykhailo Verbytski, author of the country's national anthem.
=============================================================
5. EBRD PLEDGES TO DOUBLE LOANS FOR UKRAINE IN 2005
UT1, Kiev, in Ukrainian 1550 gmt 8 Apr 05
BBC Monitoring Service, UK, in English, Friday, April 8, 2005
KIEV - [Presenter] The European Bank for Reconstruction and Development
[EBRD] thinks that the [Ukrainian] government's actions are resolute and
consistent, while its policy is clear-cut and transparent. The EBRD promised
to double the amount of loans for our economy this year.
The EBRD and domestic banks will agree on a list of projects by May. The
most attractive projects include our energy, banking and transport sectors.
Financiers are interested in taking part in upgrading the rolling stock of
the [Ukrainian] railways. Europeans are also willing to invest in the
development of leasing and retail chains, as they think the investment
climate has improved in Ukraine.
[Jean Lemierre, captioned as EBRD president, in English, overlaid with
Ukrainian translation] I have met with investors, and they are currently
interested in investing their money into Ukraine, as they see true progress,
and also improved business and legal environment. We also view this as
significant progress, which we would like to support. -30-
=============================================================
6. UKRAINE MACROECONOMIC SITUATION - MARCH 2005
SigmaBleyzer Monthly Ukrainian Economic Report
By Iryna Piontkivska, Edilberto L. Segura
SigmaBleyzer, Kyiv, Ukraine, April 2005
KYIV - The latest edition of the SigmaBleyzer Ukrainian Monthly Economic
Report includes the following highlights:
(1) Real gross domestic product (GDP) growth picked up by a healthy
6.5% year-over-year (yoy) in January.
(2) In January, the consolidated budget posted a healthy surplus of 6.3%
of period GDP, but the fiscal outlook for 2005 depends on amendments
yet to be introduced by the new government in order to finance election
pledges.
(3) Inflationary expectations have eased in January as consumer inflation
reached 12.6% yoy.
(4) With the end of political turbulences associated with the presidential
elections, a subsequent liquidity crisis in the banking system has been
alleviated.
(5) During 2004, net inflow of FDI grew by 31% yoy to $1.56 billion,
which is the largest annual inflow since 1991.
To read the entire Ukraine Macroeconomic Situation Report click on
this link: http://sigmableyzer.com/files/Ukraine_Ec_Situation_03_05.pdf.
=============================================================
7. UKRAINE TO EASE TAX BURDEN VIA NEW BILL MERGING
ALL SOCIAL TAXES INTO ONE 20 PERCENT TAX
New Europe, Athens, Greece, Monday, April 11, 2005
KYIV - Ukrainian President Viktor Yushchenko said a bill merging all
social taxes into one 20 percent tax will be drafted in Ukraine in the
near future, it was reported last week.
"Our goal is to reduce the common basket of social taxes to 20 percent,
to be paid in a lump sum. "We are working on this goal and we hope to
receive a response from lawmakers soon," Yushchenko told representatives
of leading US companies at the US Chamber of Commerce in Washington
last Monday.
The new Ukrainian leadership is well-aware that a conflict existed between
the authorities and business that was "rooted in high taxes and a narrow
base," the president said. "Our policy is different: to minimise the tax
burden and broaden the taxable base," Yushchenko said. -30-
=============================================================
8. UKRAINIAN PM ATTACKS "OLIGARCHS," THEY FACE AUDITS
Government will raise railway freight charges
Interfax, Kyiv, Ukraine, Saturday, April 9, 2005
KYIV - Ukrainian Prime Minister Yulia Tymoshenko said on Saturday
that the government would stick to its decision to raise railway freight
charges and ignore efforts by metal industry "oligarchs" to have it
scrapped. The government is also planning careful audits of every
organization in the industry, she told a news conference in Kyiv.
"A congress of all Ukraine's oligarchs is being planned for April 13 under
the code name 'Assembly of Ukrainian Metallurgists.' We are perfectly
aware that nearly all of the Ukrainian metallurgical complex belongs to five
families as a result of work done by [former] president [Leonid] Kuchma.
An attempt will be made there to break the government's decision to raise
freight transportation charges for Ukrainian Railways by 50%," Tymoshenko
said. But the government will ignore such pressure, she said. -30-
=============================================================
9. UKRAINE: US EMBASSY HOSTS INVESTMENT CLIMATE SEMINAR
Tuesday, April 12 from 10:00 a.m. to 12 p.m.
Public Affairs Section, U.S. Embassy in Kyiv
Kyiv, Ukraine, Thursday, April 7, 2005
KYIV - Representatives of the media are invited to attend a seminar entitled
"Improving the Investment Climate in Ukraine: Next Steps," which will take
place on Tuesday, April 12, from 10:00 a.m. to 12:00 p.m. at the Public
Affairs Office, 4 Hlybochytska Street.
The seminar will consist of two segments: a panel discussion and a question
and answer period. Panelists include Kamen Zahariev, Country Director of
the European Bank for Reconstruction and Development (EBRD); Vira
Nanivska, Director of the International Center for Policy Studies (ICPS);
Myron Wasylyk, Senior Vice President of the PBN Company and Director
of the Board of the American Chamber of Commerce; and Victor Gekker,
General Director of the Bleyzer Foundation.
U.S. Ambassador to Ukraine John E. Herbst will open the seminar. Other
invited guests include Rada Deputies, representatives of relevant
government ministries, think tanks, and the academic community.
Participating journalists will be able to ask questions during the question
and answer period. The program will be conducted in Ukrainian, Russian,
and English, with simultaneous interpretation provided. As space is
limited, journalists must register for the event by calling 490-4026 by noon
on Monday, April 11, and be in place by 9:30 a.m. on Tuesday, April 12.
----------------------------------------------------------------------------------------------------
LINK: http://usembassy.kiev.ua/infocentral_eng.html
Public Affairs Section, United States Embassy Kyiv
4 Hlybochytska St., Kyiv 04050 Ukraine
(380 44) 490-4026, 490-4090, Fax (380 44) 490-4050
http://usembassy.kiev.ua, info@usembassy.kiev.ua
=============================================================
10. WESTERN NIS ENTERPRISE FUND (WNISEF) PURCHASES
CONTROLLING STAKE IN SHOSTKA MILK PLANT
Western NIS Enterprise Fund (WNISEF)
Kyiv, Ukraine, Wednesday, April 6, 2005
KYIV - Western NIS Enterprise Fund (WNISEF), a private equity fund investing
in small and medium-sized companies in Ukraine and Moldova, purchased a
controlling stake in OJSC "Shostka City Milk Plant" (Shostka, Sumy oblast).
This acquisition will enable WNISEF, as a member of the company's Board of
Directors, to participate in the strategic development of one of the leaders
in Ukraine's cheese and dairy production industry. WNISEF's investment plans
will assist the company to improve its competitiveness and expand market
share both in Ukraine and abroad.
With annual net sales in 2004 of just under $30 million, Shostka Milk Plant
has one of the largest market shares (5%) in a very fragmented hard and
processed cheese industry. The company's production capacity is 950 tons
of cheese per month. The plant produces an assortment of more than 100
products, which are well known in Ukraine and Russia (which accounts for
exports of approximately 50% of manufacturing). Over the past four years,
Shostka City Milk Plant has posted 30% - 50% annual increases in
manufacturing output, surpassing the industry's overall growth rate.
"WNISEF's strategy is to invest in companies with superior growth potential
and, working closely with its partners and management, increase the
company's profitability and its market share. Shostka Milk Plant - with its
outstanding financial performance, a professional team of like-minded
managers, and high quality of products - has quite a number of competitive
advantages, which attracted us as an investor," underlined Oksana Strashna,
WNISEF Investment Manager.
This transaction represents WNISEF's first investment in Ukraine's cheese
sector, which is the most dynamic segment of the country's dairy industry.
Cheese manufacturing in Ukraine is growing 30% per year, and by WNISEF
estimates, will continue to show high growth rates over the next 5-6 years.
Per capita cheese consumption in Ukraine is still low at 3 kg, while in
Russia it has already reached 4 kg and in Poland - 13 kg.
WNISEF anticipates rapidly achieving a new stage in the company's
development by introducing international business practices, accounting and
corporate governance standards. In addition, a series of steps is planned,
which will enable an increase in manufacturing capacities via modernization
of facilities and the attraction of additional capital.
Special emphasis will be placed on building a distribution network,
development of new brands and their promotion not only in Ukraine, but also
abroad. "We believe our new shareholder will actively address the strategic
issues of company development and growth, modernization, and human
resource development. The first results of this investment are already
evident - we have attracted bank debt with an interest rate 7% lower than
previous borrowings, because the financial community is looking at our
development and expansion plans with greater confidence.
For Shostka City Milk Plant, WNISEF's earlier investment in SBK (a brick
manufacturer in Sumy region) is a convincing example of a successful
investment strategy and approach to Ukrainian businesses," said Larysa
Rudakova, CEO of Shostka City Milk Plant. -30-
=============================================================
11. UKRAINE ECONOMY SEEN HEADING IN RIGHT DIRECTION
By Barry Wood, Voice of America (VOA)
Washington, Wednesday, 06 April 2005
WASHINGTON - Since the December 2004 triumph of Ukraine's peaceful
revolution and the election of Viktor Yushchenko as president, the new
administration in Kiev has been vocal about the need to end corruption and
curtail the effect of the country's oligarchs on the government.
Ukraine's economy has been doing relatively well for several years. Economic
growth reached an impressive 12 percent in 2004 but is expected to slow to
seven percent this year.
Structurally Ukraine's resource rich economy is much like Russia's. As in
Russia, economic power is concentrated in the hands of just few big
businessmen-oligarchs-who obtained their wealth by questionable means.
Anders Aslund of Washington's Carnegie Endowment is a long time observer
of Ukraine's economy. Speaking from Sweden, Mr. Aslund says it would be a
mistake for Ukraine to redo its flawed privatization.
"I think it would be much better to try to get the oligarchs to pay up," he
said. "To have a once only tax for what they've already got. Otherwise you
get into an east German situation of loss of property rights being uncertain
for a long time and nobody wants to invest under such circumstances."
Mr. Aslund, who advised previous Ukrainian governments, says the new
administration should be very careful in renationalizing privatized
enterprises.
President Yushchenko, currently in Washington, has made the fight against
corruption a centerpiece of policy. His economic priority is steering
Ukraine towards membership in the World Trade Organization and the
European Union. As a first step he is asking the United States and the EU
to designate Ukraine as a fully functioning market economy.
"The non-recognition of the market based economy status for Ukraine is
an anachronism," he said before a joint meeting of the U.S. Congress.
"Ukrainian producers are deprived of the rights enjoyed by their
competitors. The time has come to restore fairness."
Mr. Aslund says it is too early to pass judgment on this government's
economic performance. But he applauds Mr. Yushchenko's campaign
against corruption and his determination to achieve administrative reform.
"I think the prime issue really is reform of the state," he said. "And if
that is the prime issue you don't expect the state to be very effective as
a reforming machine in the meantime."
The big west European banks are very optimistic about Ukraine. They are
anticipating a surge of foreign investment and continuing strong economic
growth. They say the most immediate economic threat is rising
inflation. -30- [The Action Ukraine Report Information Service]
=============================================================
12. MAJOR EGYPTIAN GRAIN PROCESSOR WADI HOLDINGS
INTERESTED IN SUPPLIES OF GRAINS AND OILSEEDS FROM UKRAINE
AgriMarket.Info, www.agrimarket.info
Dnipropetrovsk, Ukraine, Friday, April 8, 2005
A large Egyptian grain processing and trading company Wadi Holdings
is interested in supplies from Ukraine of grains and oilseed meals, a
representative of Wadi Holdings said to APK-Inform in a telephone
conversation.
The company is planning to get acknowledged with potential suppliers of
agriproducts from Ukraine in the course of 4th International Conference
"Ukrainian Grain Forum. Grain Industry-2005" to be held in Kiev on May
11-13 this year, where its representatives intend to take part.
"Noting for current demand on Egyptian market and this year's crop fore-
casts in our countries, we've got a considerable potential for cooperation",
the company's spokesman said.
He said that the company was interested mostly in supplies of Ukrainian
feed wheat, maize, sunseed and soybean meals. It has been buying each
month about 5,000 tonnes of fodder wheat, 16,000 tonnes of yellow corn
(maize) and 5,000 tonnes of soybean meal.
Egyptian Wadi Holdings makes part of the group of companies "Wadi
Group", operating in four major areas of agribusiness: poultry breeding,
food processing, reclamation of arid lands, feed and commodity trading.
Wadi Holdings S.A.E. was incorporated in 1995. It coordinates activities
of 9 companies within Wadi Group, providing their strategic and financial
management. The company has branches in Libya, Jordan, Sudan and
Saudi Arabia. -30- [The Action Ukraine Report Monitoring Service]
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LINK: http://www.agrimarket.info/showart.php?id=23710
=============================================================
13. UKRAINE PLAYS DOWN SCANDAL WITH BELARUS, CUBA
ITAR-TASS, Moscow, Russia, Friday, April 8, 2005
KIEV - The Ukrainian Foreign Ministry on Thursday played down the scandal
that emerged in relations with Belarus and Cuba after President Viktor
Yushchenko signed with his US counterpart George W. Bush a declaration
calling to promote freedom in the two countries and in Iraq.
"Ukraine remains open for a frank dialogue and fruitful cooperation for the
benefit of the Ukrainian, Belarussian and Cuban peoples. Ukraine highly
values relations of friendly cooperation that exist between Ukraine and
other world states, including Belarus and Cuba. However we proceed from
the notion that true friends can always frankly speak about existing
problems", the ministry said in a statement.
"The development of democracy, respect and protection of basic freedoms
and human rights are the cornerstone of the activities of the new Ukrainian
authority in the domestic and foreign policy. We follow with interest the
development of democratic processes in every state", the ministry said.
Cuba was outraged by the declaration. A government delegation that was
in Kiev at the moment cut short its visit and Havana issued a protest to the
Ukrainian Foreign ministry.
Cuban Deputy Foreign Minister Eumelio Caballero Rodriguez said "it is
incredible for us that the president of such a friendly country as Ukraine
joined the strategy of the United States that has been for the last 40 years
carrying out an aggression against our country through economic blockades
and by staging over 600 terrorist acts against our country".
Belarussian Foreign ministry deputy spokesman Ruslan Yesin told a briefing
that such a discussion of Belarussian internal affairs "does not fit into
the general context of traditionally friendly and good-neighborly relations
between Belarus and Ukraine. Belarussian affairs will be resolved
exclusively by Belarus".
"We are surprised by this fact. We stand for constructive and close
relations with Ukraine and the United States, but not at the expense of
Belarus", he said. -30- [The Action Ukraine Report Monitoring Service]
=============================================================
14. THE POSTCARDS (VIDEOS): UKRAINE AND ITS PEOPLE
A total of 50 videos is currently being produced
By Soetse Bakker, Eurovision2005.info, esctoday.com
Europe, Sunday, April 10, 2005
Once, the organisation of the Eurovision Song Contest came up with a
solution to create time inbetween the songs to change stage and lightning;
the postcards [videos]. Nowadays, each postcard is considered to be a
small ánd smart piece of art to keep the viewer watching and... to promote
the host country!
A total of 50 videos is currently being produced; 26 for the semifinal (35
seconds) and 24 for the final (40 seconds). The people of Ukraine, nature
and culture are the main subjects. Some videos have been shot in Kyiv,
Ukraine's capital, others have been recorded in natural environments.
Although the commentators should be able to tell their story about the
upcoming participant, the videos will be accompanied by traditional
Ukrainian music in modernised versions.
Nikolay Tomenko, vice-Prime Minister of Ukraine, emphasized on the
importance of postcards showing the beauty of Ukraine. After the almost
revolutionary presidential elections in 2004, the Ukrainian broadcaster and
government consider the postcards as an opportunity to show Ukraine as
a free, modern, advanced and talented nation to the participating countries.
Some postcards have been recorded already, others are still being
produced by Luxen Studio in Lviv, the production company behind
Ruslana. The first time postcards were used was in 1970, for the
Eurovision Song Contest in Amsterdam. -30-
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LINK: http://www.esctoday.com/news/read/4203
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15. BELEAGURED SOVIET DISSIDENT YURI ABRAMOV LEARNS
HIS DAUGHTER IMPRISONED IN UKRAINE
By Peter Johnson, Tribune Staff Writer, Great Falls Tribune
Great Falls, Montana, Monday, April 11, 2005
Former Soviet dissident Yuri Abramov of Great Falls, still seeking asylum in
America himself, has learned that his daughter was imprisoned in Ukraine.
"Yuri's Great Falls supporters want to help by getting people to send
letters to the Ukraine government," said community leader Kendra Owen.
"Yuri firmly believes the letters that people from around the world sent on
his behalf in the early 1990s helped get him treated better and finally
released from prison."
Abramov is convinced that his daughter Irina Ferar was imprisoned on trumped
up drug charges. She was an outspoken supporter for a candidate whom local
government officials opposed, presidential candidate Viktor Yushchenko.
Yushchenko was elected after surviving a near fatal poisoning, but Ferar
remains in prison.
"That's the difference between getting involved in politics in America and
in Ukraine," Abramov said. "You can be imprisioned for expressing your views
over there." Abramov said eight police officers checked his daughter's home
and found a small stash of drugs. He said it is common for Ukraine police to
"plant" false evidence in order to arrest opponents. Irina thus became the
fourth generation in his family to suffer persecution for expressing their
views, Abramov said.
His grandfather was killed in 1938 by the regime of dictator Josef Stalin,
his mother was imprisoned for 10 years in the 1950s and an older daughter,
Natashia was imprisoned at age 14 and raped by guards.
Abramov led a shipyard rebellion in Ukraine and soon after was jailed for
nine years on a rape charge he insists was fabricated. He believes he was
freed a few years early when world-wide listeners to Radio Liberty heard his
case and wrote letters expressing concern.
That's why Owen and her group is urging area residents to write letters on
Irina's behalf and to ask friends and relatives elsewhere to do so, too.
"We want people to write Ukraine authorities telling them they are aware of
Irina Ferar's persecution and want her released," Owen said. "We will
provide them with mailing labels with the right address."
Meanwhile, an immigration judge has scheduled a hearing in Helena on June
14 for Abramov, who could win political asylum after a decade of effort by
him and his volunteer Great Falls attorney, Keith Tokerud. After Abramov
was freed from prision in Ukraine, he fled from a trade group that was
visiting Montana. He has lived in Great Falls since early 1994.
U.S. immigration officials have repeatedly denied Abramov's requests for
political asylum. In 2001 he was nearly deported. Last October, a
three-judge federal appeals court ruled that Abramov had been imprisoned
on fabricated charges in the Ukraine and could be eligible for asylum here.
But first he must appear before another U.S. immigration judge who will
assess whether conditions have improved enough in Ukraine so that he
would no longer be at risk if deported.
Tokerud said he has "cause for optimism" that the judge will rule in favor
of Abramov: The appellate court said the burden of proof will be on
immigration officials to show Abramov would not be in danger again if he
were deported to Ukraine.
Tokerud will be able to call Peter Juviler, a Columbia University expert on
violations in the former Soviet Union. The original immigration judge who
ruled against Abramov has retired. "We'll go before a fresh judge and
we're optimistic he will view the facts fairly and rule in Yuri's favor,"
Tokerud said. -30- [The Action Ukraine Report Monitoring Service]
------------------------------------------------------------------------------------------------------
LINK: http://www.greatfallstribune.com
=============================================================
16. PHOTOGRAPHS OF YUSHCHENKO'S VISIT TO WASHINGTON, D.C.
THE ACTION UKRAINE REPORT
Washington, D.C., Sunday, April 10, 2005
WASHINGTON - During Viktor Yushchenko's visit to Washington, D.C.
freelance photographer Richard Krauze took hundreds of photographs
at the various events and has posted the photos online. The photos can
be viewed by going directly to www.printroom.com/pro/richardkrauze or
by going through his website at www.richardkrauze.com.
In addition to the event photos, Krauze captured numerous people meeting
President Yushchenko, Kateryna Yushchenko, and Vladimir Klitchko.
Krauze was a Peace Corps Volunteer in Ukraine. Upon completion of
his service Krauze worked with the U.S. Embassy and Ambassador Carlos
Pascual to organize a photo exhibition in Ukraine. The exhibition traveled
around for nearly two years and was very well received.
On the U.S. Embassy website, Pascual writes, " His photos capture the
beauty and diversity of Ukraine and its people, as well as the spirit of
cooperation and understanding that Peace Corps embodies."
The Ukrainian Embassy in Washington, D.C. is very interested in hosting
a similar exhibition in the upcoming months. Krauze is currently organizing
and preparing the exhibition that will open sometime later this year. The
Action Ukraine Report and www.ArtUkraine.com has been working with
Richard Krauze regarding the exhibition. Financial sponsors are needed
now for the exhibition. Your support would be most appreciated. -30-
-----------------------------------------------------------------------------------------------
Contact: Rich Krauze, rskrauze@yahoo.com
=============================================================
17. PROMOTING A ROBUST U.S.-UKRAINE AGENDA-SECURING
THE ORANGE REVOLUTION IN UKRAINE
United States Senate Republican Policy Committee
Jon Kyl, Chairman, Lawrence Willcox, Staff Director
347 Russell Senate Office Building
Thursday, March 31, 2005, Washington, DC 20510, http://rpc.senate.gov
INTRODUCTION ---
On April 4, newly elected Ukrainian President Viktor Yuschenko will meet
with President Bush at the White House. This will be President Yuschenko's
first official visit to the U.S. since his historic victory over
Russian-backed presidential candidate Viktor Yanukovich.
Ukraine's Orange Revolution, which late last year brought millions to the
streets in protest against falsified elections, was a striking example of
the power of freedom - a theme President Bush placed at the heart of his
second Inaugural Address and his recent State of the Union speech. The
courageous and peaceful character of the democratic revolution showed
the face of a new European nation that deserves America's immediate
support.
The Bush Administration has offered considerable political and financial
assistance for long-overdue and lasting reforms in Ukraine. As Vice
President Cheney said on January 26, the United States and the free world
will stand with President Yuschenko as he "works to consolidate Ukraine's
democratic gains and adds to the prosperity and justice of his country." (1)
He said America looks forward to working with President Yushchenko to
"strengthen a democratic Ukraine to enhance security, preserve peace,
and build a better world."
In March 2006, Ukraine will hold parliamentary elections. It is likely to be
a referendum on Yuschenko's record on delivering the democratic and
economic promises he made during the campaign. The Ukrainian people's
voices were heard around the world demanding real representative govern-
ment. A failure by the new Ukrainian government to truly represent the will
of the people would discredit the country's democrats and possibly allow
autocrats and oligarchs the opportunity to rule Ukraine again. Just as the
victory of democracy in Ukraine inspired those in other countries seeking
to remove oppressive governments, so would a failure of the Orange
Revolution be used by despotic leaders to undermine the democratization
of their countries.
The future of Ukraine is important for Western security, political, and
economic interests. Recognizing the high stakes, the United States must
take the necessary steps now to ensure that Ukraine's recent gains are not
short-lived.
What is needed is a robust and achievable set of short-term actions to bind
Ukraine to the transatlantic community and make its transition to a fully
functioning democracy irreversible. This paper will offer some
recommendations on how to achieve this.
WHY UKRAINE MATTERS --
Ukraine, the second largest European country and boasting a population of
nearly 50 million people, is wedged between the eastern-most border of
NATO and the Black Sea region where the transatlantic alliance is
increasingly looking to expand democratic, economic, and military stability.
Historically and geographically close to Russia, Ukraine is now faced with
challenge of serving as a successful showcase of "democracy in action"
despite its big neighbor's problems in consolidating free-market democracy.
The success or failure of Ukraine's "democratic experiment" during the next
two or three years will resonate politically in the region for decades to
come.
Ukraine also serves as Europe's energy "solar plexus." Major pipelines
traverse Ukraine from Russia destined for Europe. Construction is currently
underway to build pipelines that will pump oil from the Caspian Sea through
Ukraine to European markets. The security of these shipments is an important
concern of U.S. industry and policymakers.
Although it has forsworn nuclear arms, Ukraine has one of the largest and
best armed militaries in Europe. Ukraine inherited the third largest nuclear
arsenal in the world when the Soviet Union dissolved. Today it is free of
atomic weapons and work continues to eliminate delivery systems and
production capabilities under the Nunn-Lugar program. In recent years,
however, Ukrainian defense firms have been accused of selling sensitive
technologies to rogue regimes. (2)
Ensuring that arms and technology proliferation cease has been a priority
for the Bush Administration. Ukraine also has become a major transit point
for illegal trafficking of humans, drugs, and weapons. (3) A strong and
stable democratic Ukraine is the best defense against these threats.
PAST U.S. SUPPORT --
Since Ukraine gained its independence in 1991 following the breakup of the
Soviet Union, the United States has provided significant development and
military assistance. From 1992-2004, total U.S. aid to Ukraine was $3.257
billion. Of this, roughly $1.391 billion (43 percent) was security related.
The remainder focused on democratization, economic and social reform
programs, and humanitarian relief.
Despite a strong U.S. commitment, the U.S.-Ukrainian relationship failed to
meet expectations. During the 1990s, the government of President Leonid
Kuchma was mired in massive corruption and increasingly prone to repression
of its critics.4 Over the last several years, the Ukrainian government was
led by an alliance of communists and oligarchs more focused on advancing
personal agendas and moving closer to Moscow than to advancing meaningful
reform.
Some U.S. policymakers grew skeptical of whether a democratic Ukraine was
possible in the near term, and this led to a decline in U.S. foreign
assistance. But despite the corruption of the Kuchma regime and the failure
of efforts to thus far create an open, market economy in Ukraine, it is also
true that what investment there was in democracy programs and the
development of civil society helped create the conditions for the revolution
that brought Yuschenko to power.
THE AGENDA FORWARD --
President Bush has repeatedly and firmly expressed his strong support for
the changes underway in Ukraine. Members of Congress, too, have expressed
considerable support for Yuschenko. Senator Richard Lugar (R-IN) recently
stated that "extraordinary events have occurred in Ukraine . it is in our
interests to recognize and protect these advances." (5)
According to CRS, the FY2005 foreign aid bill (P.L. 108-447) provides $70
million for Ukraine in political and economic reform assistance and $3
million in Foreign Military Financing. (6) In response to democratic
advances in the Orange Revolution, the FY05 emergency supplemental
includes a request for $60 million in emergency monies to assist the new
Yuschenko government in democracy development and rule of law programs.
However, on March 16, the House of Representatives cut the President's
request back to $33.7 million.
Such a cut in funding for democracy, anti-corruption, and rule of law
initiatives will greatly hamper the United States' ability to assist the new
Ukrainian government in addressing corruption and advancing democratic
principles. The Senate should strongly consider restoring the President's
request.
There are at least four critical steps Congress and the Administration
should consider immediately taking to buttress the important and historic
gains in Ukraine.
Graduation from Jackson Vanik and support for Ukraine's accession to
the WTO. A symbolic, but significant, gesture would be for the Bush
Administration and Congress to issue statements during President
Yuschenko's visit supporting the eventual removal of Ukraine from
Jackson Vanik restrictions. Such statements do not tie the hands of
the Administration or Congress and still place the onus on meeting the
terms of Jackson-Vanik squarely in Ukraine's hands.
Jackson-Vanik legislation was adopted at the height of the Cold War as a
tool to pressure Communist nations to allow their people to freely emigrate
and adopt democratic institutions by denying "normal trade relations"
treatment for imports from Soviet bloc countries. This is no longer
applicable to Ukraine. Repeal of these Cold War-era restrictions would
welcome it back into the community of nations. Numerous bills have
been introduced to grant normal trade relations to Ukraine. (7)
It is important not to link Russia's graduation from Jackson-Vanik with
Ukraine's. These are two separate countries each making two separate cases.
While it may be legislatively logical to couple the removal of Ukraine and
Russia from the list, in fact, such a process will impair, if not completely
thwart, Ukraine's chances for graduation from Jackson-Vanik in the near
term.
Inclusion in the Millennium Challenge Account. Last year, when 16 nations
were identified as eligible for the Bush Administration's Millennium
Challenge Account (MCA) development assistance program, Ukraine was
not part of the group. (8) To date, Ukraine has not yet qualified for
Threshold Program assistance - a program open to countries that came
close to, but did not qualify for, MCA eligibility and have demonstrated a
commitment to meeting MCA's selection criteria. Ukraine continues to be
passed over because of the country's inability to control corruption. (9)
While Yuschenko has only been in office for a few months, a strong sign of
faith in his reform agenda would be to have Ukraine added to the list of
eligible Threshold Program countries, if not full MCA countries. The
Administration has already stated that it will work vigorously with the
Yuschenko government to help it implement anti-corruption measures.
Congress should encourage the MCC to include Ukraine in MCA in the
next eligibility round that will be announced later this year.
Recognition as a Candidate for NATO Membership. While there may be little
appetite in Congress or the Administration for enlarging NATO in the near
future, U.S. policymakers would hearten the Ukrainian people (and those in
the Balkans and the Caucasus) by publicly stating in speeches and
congressional resolutions that NATO membership is a realistic option. On
February 22, in a press conference at NATO headquarters, President Bush
said the "door is open" for Ukraine to join NATO, "but it's up to President
Yushchenko and his government and the people of the Ukraine to adopt the
institutions of a democratic state." By repeating such statements, U.S.
policy-makers will provide the same impetus to progress that swept through
Central and Eastern Europe during the 1990s and resulted in nearly every
one of those countries becoming members of NATO, the European Union,
or both. Ukraine must have a legitimate and stable venue to meet its
security concerns. Membership in NATO provides such a platform.
Development of a Joint Plan to Stem Illegal Trafficking. Cracking down on
and halting illegal trafficking of humans, narcotics, and weapons is a
necessary step if Ukraine is to reform its economy and its political
institutions.
This is also important to Ukraine's neighbors, specifically Moldova, which
do not have the resources to tackle the illegal trafficking that permeates
their borders and that retards the development of their society. The U.S.
and Ukraine, along with European partners, should jointly develop a plan
to shut down all illegal trafficking through and within Ukraine. The plan
should include aggressive border monitoring and the development of
new law enforcement measures to prevent this activity and punish strictly
those found guilty of trafficking.
CONCLUSION --
On April 6, in one of the most potent symbols of American support for a
foreign democracy, Congress will jointly convene and be addressed by
President Yuschenko. This will be a first for a Ukrainian leader. As
Senators and Representatives gather to listen to President Yuschenko,
one of the most immediate foreign policy goals that Congress should set
for itself in the coming year is securing the Orange Revolution's victory in
Ukraine.
Ukraine has great potential and weighty political and security
responsibilities. It is in the U.S. interest to work closely with the new
democratic and Western-oriented Ukrainian government on critical issues
ranging from fighting the War on Terror (Ukraine has had troops on the
ground in both Iraq and Afghanistan) to fostering democracy in Belarus,
Moldova, Russia and the broader Middle East.
The importance of Ukraine's democratic revolution cannot be overstated.
Should Ukraine's democratic process fail, the economic, political, and
security consequences for the U.S., Europe and democratic reformers
everywhere could be severe. But if Ukraine remains on the democratic
path and on a westward trajectory, the benefits will spread far and wide
throughout the region and throughout the entire transatlantic community.
------------------------------------------------------------------------------------------------
END NOTES
1 Remarks by Vice President Dick Cheney and Ukrainian President Viktor
Yuschenko in Poland on January 26, 2005.
2 New York Times, "U.S. Report Says Hussein Bought Arms with Ease,"
October 8, 2004.
3 U.S. Department of State, "Country Reports on Human Rights Practices,
2004: Ukraine," February 28, 2005.
4 Transparency International, "Global Corruption Report 2004," March 25,
2004.
5 Senator Richard Lugar (R-IN), Press Release, "Levin, Lugar Introduce Bill
to Grant Normal Trade Relations to Ukraine," January 24, 2005.
6 Congressional Research Service, "Ukraine's Political Crisis and U.S.
Policy Issues," February 1, 2005.
7 Senator John McCain (R-AZ) introduced S. 410 on February 16, 2005;
Representative Henry Hyde (R-IL) introduced H.R. 885 on February 17, 2005;
and Senator Lugar introduced S. 632 on March 16, 2005.
8 Millennium Challenge Corporation, Press Release, "Millennium Challenge
Corporation Names MCA Eligible Countries," May 6, 2004.
9 Millennium Challenge Corporation, "FY05 Country Indicator Rankings:
Ukraine," http://www.mcc.gov/countries/rankings/FY05/index.shtml.
--------------------------------------------------------------------------------------------------
File Source: http://rpc.senate.gov/_files/Mar3105RobustUkraineDF.pdf
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