"THE ACTION UKRAINE REPORT - AUR"
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"

"BETRAYING A REVOLUTION"

"The contrast between the declarations of the Orange Revolution and
current government policy could hardly be greater. Curiously, this
discrepancy continues. In an editorial on Yushchenko's first 100 days,
the Kiev Post points out that "while Yushchenko is making grand state-
ments abroad, the rest of the government does not seem to follow his
lead." [article one]

"THE ACTION UKRAINE REPORT - AUR" - Number 487
E. Morgan Williams, Publisher and Editor
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C. and Kyiv, Ukraine, THURSDAY, May 19, 2005

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

1. "BETRAYING A REVOLUTION"
OP-ED By Anders Aslund
The Washington Post, Washington, D.C.
Wednesday, May 18, 2005; Page A17

2. UKRAINE SEEKS TO REDUCE ENERGY DEPENDENCE ON RUSSIA
Aleksandar Vasovic, AP Worldstream, Kiev, Ukraine, Wed, May 18, 2005

3. PRES YUSHCHENKO STATES NEED TO CREATE VERTICALLY
INTEGRATED UKRAINIAN NATIONAL OIL COMPANY
Ukrainian News Agency, Kyiv, Ukraine, Wed, May 18, 2005

4. YUSHCHENKO VOWS TOTAL SATURATION OF UKRAINIAN MARKET
WITH PETROLEUM PRODUCTS IN MAY
To create a national reserve of petroleum products
Ukrainian News Agency, Kyiv, Ukraine, May 18, 2005

5. UKRAINIAN CABINET WILLING TO USE PART OF DEUTSCHE BANK'S
EURO 2 BILLION LOAN FOR NAFTOHAZ UKRAINY TO BUILD 1,000
GOVERNMENT OWNED GAS STATIONS
Ukrainian News Agency, Kyiv, Ukraine, Wed, May 18, 2005

6. MP TYMOSHENKO ASKING KINAKH TO BE MORE MEASURED IN HIS
COMMENTS ABOUT CABINET OF MINISTERS ACTIONS
Ukrainian News Agency, Date: May 18, 2005

7. PM TYMOSHENKO SAYS SBU INVESTIGATING ORGANIZERS
OF GASOLINE CRISIS IN UKRAINE
Ukrainian News Agency, Kyiv, Ukraine, Wed, May 18, 2005

7. RUSSIAN COOPERATION IN ESTABLISHING NUCLEAR FUEL INDUSTRY
Interfax news agency, Moscow, Russia, in Russian, 18 May 05
BBC Monitoring Service,UK, in English, Wed, May 18, 2005

8. UKRAINE MACROECONOMIC SITUATION - APRIL 2005
REPORT: by Iryna Piontkivska, Ediberto L. Segura
SigmaBleyzer Private Equity Investment Group
Kyiv, Ukraine, Wednesday, May 18, 2005

9. INTERPIPE, PRIVAT CLASH FOR 11% OF WORLD FERROALLOY MARKET
Andrey Voltornist, Ukraine Analyst
IntelliNews - Ukraine This Week
Kyiv, Ukraine, Monday, May 16, 2005

10. PROFILE: UKRAINIAN PRIVATIZATION CHIEF VALENTYNA SEMENYUK
Semenyuk prefers state property to private ownership.
BBC Monitoring research, 18 May 05
BBC Monitoring Service, UK, Wed, May 18, 2005

11. UKRAINIAN PRIVATIZATION "BLACK LIST" LEAKED
List of twenty-nine companies
Kommersant web site, Moscow, in Russian 18 May 05
BBC Monitoring, UK, in English, Wed, May 18, 2005

12. SOFTWARE SECTOR FEARS $200 BILLION PIRACY LOSSES
90% of software in Vietnam, Ukraine, China and Zimbabwe is illegal
87% illegal in Russia
By Maija Pesola in London, Financial Times,
London, United Kingdom, Wed, May 18 2005

13. A SONG FOR EUROPE IN THE WAKE OF REVOLUTION
50th Eurovision song contest celebrated this Saturday in Kiev.
Ukrainian novelist Kurkov gives insider's guide to host capital
By Andrei Kurkov, Guardian Unlimited Travel/Cities
The Observer, London, UK, Sunday, May 15, 2005

14. WHAT WILL TERRY WOGAN THINK? EUROVISION MEANS
FROTHY POP, DOESN'T IT?
Not any more. Dorian Lynskey reports from post-revolution Ukraine
By Dorian Lynskey, The Guardian
London, United Kingdom, Thursday, May 19, 2005

15. KIEV NOW TAKES ON A MUSICAL REVOLUTION
By Natalia A. Feduschak in Kiev, The Washington Times
Washington, D.C., Wednesday, May 18, 2005

16. 'OUR HEART IS IN EUROPE, OUR SOUL IN UKRAINE!'
Ukrainian Eurovision Song Contest Representatives GreenJolly
Written by Sietse Bakker, ESCTODAY.COM
Your Daily Eurovision Centre, Focus on Eurovision Song Contest!
Europe, Tuesday, 17 May 2005

17. TWO WASHINGTON GROUP CULTURAL FUND EVENTS
Sunday, May 22 and Thursday, May 26
Svitlana Shiells, Chair, The Washington Group Cultural Fund
The Washington Group, Washington, D.C., Wed, May 18, 2005

18. LETTER TO THE EDITOR RE: "A 21ST CENTURY REVOLT"
LETTER TO THE EDITOR, Sent to the GUARDIAN, UK
From Daniel McMinn, Kyiv, Ukraine
Published in The Action Ukraine Report, #487, Article 18
Washington, D.C., Thu, May 19, 2005

19. UKRAINE'S 20,000 CRIMEAN TARARS GATHER TO
COMMEMORATE DEPORTATION VICTIMS OF 61 YEARS AGO
Interfax-Ukraine news agency, Kiev, in Russian, 18 May 05
BBC Monitoring Service, UK, in English, Wed, May 18, 2005

20. YUSHCHENKO INTRODUCES NATIONAL SHEVCHENKO DAY
TO BE CELEBRATED EVERY YEAR ON MARCH 9
Ukrainian News Agency, Kyiv, Ukraine, Tue, May 17, 2005

21. YUSHCHENKO ORDERS GOVERNMENT TO CELEBRATE
JUBILEES OF LEADERS OF UKRAINIAN AND WESTERN UKRAINIAN
PEOPLE'S REPUBLICS IN 2005-2009
Ukrainian News Agency, Kyiv, Ukraine, Tue, May 17, 2005
===============================================================
1. "BETRAYING A REVOLUTION"

OP-ED By Anders Aslund
The Washington Post, Washington, D.C.
Wednesday, May 18, 2005; Page A17

Ukraine's Orange Revolution was an exhilarating and joyful event. It was
a classical liberal revolution for democracy and freedom and against
corruption. Viktor Yushchenko became the democratically elected
president, promising freedom from fear and corruption.

Alas, the new Ukrainian government of Prime Minister Yulia Tymoshenko,
another revolutionary hero, has surprisingly opted for an economic policy
that appears to be socialist and populist in nature. The results have been
immediate: Last year Ukraine enjoyed economic growth of 12 percent; in
the first four months of this year, the growth rate plunged to 5 percent,
while inflation has surged to 15 percent. How could things turn so sour so
fast?

The biggest blow to the economy has been the new government's foggy
plans for re-privatization. During the election campaign, Yushchenko
advocated the renationalization of Ukraine's biggest steel mill,
Kryvorizhstal, to be followed by a new privatization deal. The goal was to
undo the sale of the mill to Ukraine's two biggest oligarchs in a sweetheart
deal last year. The new government quickly acted to recover Kryvorizhstal,
but the owners have taken the case to the European Court of Justice, where
the proceedings are expected to be prolonged.

For months top Ukrainian officials have discussed publicly how many flawed
privatization deals should be reversed -- the possibilities range from 29 to
3,000 -- and how this would be done. The government is trying to recover
many enterprises through the courts, and it has drafted a broad law that
could undo much of Ukraine's privatization. The dispute can be settled only
by the fractious parliament, which will need months to come to a decision --
if, indeed, it ever decides anything.

Meanwhile, the property rights of thousands of enterprises are in limbo. In
Kiev, rumors abound that oligarchs connected to the old regime are trying to
sell their enterprises to Russian business executives and are preparing to
escape the country. Naturally, executives are cutting off investment, and
economic growth is screeching to a halt.

To make matters worse, a new socialist minister of privatization has been
appointed who opposes privatization in principle. She asked recently: "What
is so bad about re-nationalization?" Tymoshenko concurred in a recent
newspaper interview: "The biggest enterprises, which can easily be
efficiently managed, must not be privatized, and they can give the state
as an owner wonderful profits." This sounds like state capitalism.

The old regime doubled pensions, saddling Ukraine with the highest pension
costs in the world as a share of national income. The new Ukrainian
government has added to this excessive burden by raising state wages no
less than 57 percent.

To finance these and other huge social expenditures, the government is
scrambling to find more revenue. A lot of discretionary tax exemptions
have, sensibly, been abolished, but the overall tax pressure has risen
dramatically. Meanwhile, Yushchenko continues to talk about his plans for
sharp tax cuts.

Incredibly, this new regime brought to power by the middle class and small
entrepreneurs has abolished the simplified taxation that served those
segments of society so well. The result has been that tens of thousands
of small entrepreneurs have been forced to close their businesses, while
others have fled into the underground economy.

Reformers have long demanded that the lawless tax police be abolished
and that the tax administration be forced to obey the law. But Tymoshenko
is cheering the tax police on and has declared that the performance of the
regional governors will be judged by their ability to collect taxes.

Inflation is skyrocketing with increasing public expenditures. The
predominantly Russian oil companies have increased their prices as world
market prices have risen. Tymoshenko has imposed strict price controls on
gasoline and forced the remaining state oil companies to deliver it at
prices below market levels. Not surprisingly, oil supplies have declined,
and gasoline shortages have erupted. She has also started controlling the
price of meat, which has begun to disappear from markets. The price controls
are accompanied by abuse of private producers and praise of state companies.

Tymoshenko does not talk about reform of state monopolies but instead about
their reinforcement. In an additional effort to squeeze business profits and
boost state re venue, she wanted to boost railway tariffs for metals by 100
percent, but settled magnanimously for a hike of only 50 percent.

The contrast between the declarations of the Orange Revolution and current
government policy could hardly be greater. Curiously, this discrepancy
continues. In an editorial on Yushchenko's first 100 days, the Kiev Post
points out that "while Yushchenko is making grand statements abroad, the
rest of the government does not seem to follow his lead."

The official justification for these populist policies is that they are
meant to boost Tymoshenko's popularity for the parliamentary elections next
March. Both Ukrainians and Ukraine's foreign friends need an explanation of
what is going on. -30-
-------------------------------------------------------------------------------------------------------------
The author is director of the Russian and Eurasian Program at the Carnegie
Endowment for International Peace [CEIP, Washington, D.C.]
---------------------------------------------------------------------------------------------------------
http://www.washingtonpost.com/wp-dyn/content/article/2005/05/17/AR2005051701326.html
=======================================================================
2. UKRAINE SEEKS TO REDUCE ENERGY DEPENDENCE ON RUSSIA

Aleksandar Vasovic, AP Worldstream, Kiev, Ukraine, Wed, May 18, 2005

KIEV - Ukrainian President Viktor Yushchenko on Wednesday signed into
law a bill that aims to ease a fuel supply crisis by canceling customs
duties and taxes on fuel, and allow this former Soviet republic to reduce
its energy dependence on Russia. Parliament adopted the bill on Tuesday
in a bid to control an acute fuel crisis that erupted last week after major
Russian oil exporters, who control 80 percent of the Ukrainian market,
reduced supplies to this country of 48 million.

Meanwhile Yushchenko said he met late on Tuesday with the representatives
of major Russian oil distributors Lukoil and Tatneft and "that an effort was
made to end the crisis." The new law will eliminate administrative control
of oil prices and "from now on not a single person will control (oil) prices
in the country by decree," Yushchenko told reporters. He also pledged that
fuel shortages "would be eliminated within days."

Ukrainian Prime Minister Yulia Tymoshenko told ministers at a government
session that the State Security agency was investigating in order to "name
those responsible" for the fuel crisis. The new law effectively cancels
duties on imported gasoline and diesel fuel. It will allow Ukrainian
authorities to pay higher prices for oil without increasing the cost of fuel
to consumers. It could also help Ukraine purchase oil from other suppliers
such as Kazakhstan, Iran and Iraq.

After meeting top officials in Azerbaijan on Wednesday, Ukraine's Foreign
Minister Borys Tarasiuk said that the country was also ready to purchase
fuel from this oil-rich Caspian Sea state. "We have reached an agreement in
principle," he said. Yushchenko also announced that an Ukrainian delegation
will soon travel to Libya to negotiate more oil purchases and a top
executive of the Naftogaz-Ukraine oil company, Oleksiy Ivchenko, said
Ukraine has "signed a favorable (oil) import deal with the United Arab
Emirates."

The Ukrainian government's Anti-Monopoly Committee accused Lukoil,
Russia's biggest oil exporter, of monopolizing 66 percent of the gasoline
and 51 percent of diesel fuel market in Ukraine. The committee said it "will
consider the appropriate legal steps."

Relations between Russia and Ukraine have deteriorated since the pro-
Western Yushchenko won a protracted battle for the presidency last year,
defeating his Moscow-backed opponent. Kiev has set the goal of joining
the European Union and the NATO military alliance. Russia is Ukraine's key
supplier, but the Russians also depend on Ukraine as nearly all of their gas
and oil pipelines to the rest of Europe pass through Ukraine.

Oleksandr Dergachev, an analyst with the Kiev-based Institute of Political
and Ethnic Studies, said that "there are signs of a trade war between
Ukraine and Russia."

He said that the crisis had prompted the government to take steps aimed at
improving Ukraine's energy independence, such as seeking alternative
sources for imports of crude oil and fuel. "In the long-run, Ukraine will
become much less dependent on Russia," Dergachev said. -30-
===============================================================
3. PRES YUSHCHENKO STATES NEED TO CREATE VERTICALLY
INTEGRATED UKRAINIAN NATIONAL OIL COMPANY

Ukrainian News Agency, Kyiv, Ukraine, Wed, May 18, 2005

KYIV - President Viktor Yuschenko has stated the need to create a vertically
integrated national oil company. Yuschenko was speaking to journalists.
"It has become obvious today that it is necessary to create a vertically
integrated national oil company, and I am issuing the relevant directive to
the government from today," Yuschenko said.

Yuschenko also said that he intended to direct the Cabinet of Ministers to
consolidate the shares in eight companies into a single package and start
implementing the state policy in this area.

As Ukrainian News earlier reported, the Cabinet of Ministers is seeking to
use part of the EUR-2-billion loan that the Deutsche Bank provided to the
Naftohaz Ukrainy national joint-stock company for construction of 1,000
gasoline filling stations for the state-controlled Ukrnafta company.

According to Prime Minister Yulia Tymoshenko, the current problem involving
availability of gasoline at filling stations is connected with an attempt by
the Russian companies delivering crude oil to Ukraine to exert pressure on
the new Ukrainian authorities and impose their own conditions on the
authorities. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
4. YUSHCHENKO VOWS TOTAL SATURATION OF UKRAINIAN MARKET
WITH PETROLEUM PRODUCTS IN MAY
To create a national reserve of petroleum products

Ukrainian News Agency, Kyiv, Ukraine, Wed, May 18, 2005

KYIV - President Viktor Yuschenko has promised that there will be total
saturation of petroleum products on the market in the coming days.
He disclosed this to journalists. "There will be total saturation of
petroleum products on the market in the coming days," he said. In
Yuschenko's words, he will sign within several hours the decree on
resolving the gasoline crisis.

He also said that the issue of deliveries of petroleum products to the
Ukrainian market from the Baltic States, Belarus and partially from the
Caucasus has already been resolved. Yuschenko added that he also
held talks with Russian suppliers.

He said that the Lysychansk oil refinery will resume operation late in May,
whereas the LukOil company is making full deliveries of petroleum products
at its gas stations from May 17, and the Tatneft company is pumping raw
material to the Kremenchuk oil refinery according to plan. "The issue of
formulating supply of petroleum products has been resolved,"
Yuschenko said.

He added that he reached an agreement late in the evening on May 17
concerning the changes to the law that need to be introduced.
"We abandoned the previous patterns," he said. In Yuschenko's words,
the price of EUR 60 for a ton was established as excise duties for gasoline,
and EUR 30 for a ton for diesel fuel.

He added that there is also a need to resolve the issue of diversifying the
crude oil market and to move on as a minimum to 3-4 sources of crude for
Ukraine, particularly Russia, Kazakhstan, the Caucasus and Libya.

Yuschenko added that a delegation is being dispatched to Libya on May 19 in
order to hold negotiations on the supply of crude to Ukraine. The president
also said that he has given the Cabinet of Ministers the task to create a
national reserve of petroleum products in a starting volume of 10% of the
annual need, and to later move on to a 90-day reserve, especially diesel
fuel and the A-95 gasoline.

As Ukrainian News reported previously, Prime Minister Yulia Tymoshenko
instructed the State Custom Service, and also Finance Minister Viktor
Pynzenyk, who is coordinating the work of the Custom Service, to ensure
custom clearance for imported petroleum products within a timeframe of
not more than 1 hour.

The Verkhovna Rada decided to lower the excise duties and it cancelled
the import duties on high-octane types of gasoline and for diesel fuel.
Specifically, the excise duty rate on ?-92Ek, A-80Ek, A-98Ek, A-92Ek,
AI-93Ek, A-95Ek, A-72, A-76, A-80, A-98, A-90, A-91, A-92, AI-93, A-95,
A-96 is lowered from 20% of the VAT-exclusive price (but not less than
EUR 60 per 1,000 kg) to a fixed rate of EUR 60 per 1,000 kg.

Rada also decided to lower the excise duty rate on diesel fuel from 10% of
the VAT-exclusive sale price (but not less than EUR 30 per 1,000 kg) to a
fixed rate of EUR 30 per 1,000 kg.

Ukraine bought 70,000 tons of light petroleum products in Moldova and the
Baltic States in order to normalize the situation on the market. Ukraine is
also going to buy an additional of 300,000-500,000 tons of Kazakh
oil in June.

Tymoshenko had earlier accused Russia of blocking the delivery of crude to
Ukraine during a 5-day period, even though all the contracts for his crude
were paid for. Russia decided in March to increase the rates of the export
duties for commodities made from crude by 19.4% to USD 81.4 for a ton
starting from April 21. -30-
===============================================================
5. UKRAINIAN CABINET WILLING TO USE PART OF DEUTSCHE BANK'S
EURO 2 BILLION LOAN FOR NAFTOHAZ UKRAINY TO BUILD 1,000
GOVERNMENT OWNED GAS STATIONS

Ukrainian News Agency, Kyiv, Ukraine, Wed, May 18, 2005

KYIV - The Cabinet of Ministers is willing to use a part of the Deutsche
Bank credit to national joint stock company Naftohaz Ukrainy running into
EUR 2 billion for the construction of 1,000 filling stations of state-run
company Ukrnafta. Prime Minister Yulia Tymoshenko announced this at
the Cabinet of Ministers' meeting on Wednesday.

She ordered Fuel and Energy Minister Ivan Plachkov to consider the
possibility of such use of the loan. "This is a big sum. I believe, it may
be used, particularly, for the needs of Ukrnafta to build a chain of filling
stations," Tymoshenko said.

Deputy Prime Minister Oleh Rybachuk said in the course of the Cabinet
meeting that Deutsche Bank is ready to provide the next tranche (EUR 300
million) of the loan in the coming month (earlier the granting of this sum
was planned for October-November). "Taking into account our situation, we
are offered to get the next tranche of EUR 300 million in the coming month,"
Rybachuk said.

He also added that Deutsche Bank offers technical aid in the use of this
money, including for the construction of filling stations or diversification
of the sources for the supply of crude oil and petroleum products to
Ukraine.

As Ukrainian News earlier reported, Deutsche Bank opened a credit line
of about EUR 2 billion to Naftohaz Ukrainy in March for implementing its
international projects. The disbursed amount is expected to be used to
modernize the oil and gas transportation industry, geological exploration,
and other projects. In April Deutsche Bank extended to Naftohaz Ukrainy
the first tranche of the loan.

On May 16 Tymoshenko set forth the government's initiative to build 1,000
filling stations of the Ukrnafta company. She said that the shortage of
gasoline at filling stations early this month should be attributed to the
fact that Russian oil supplying companies are attempting to exert pressure
on the new government in order to force it to accept their conditions.
===============================================================
5. MP TYMOSHENKO ASKING KINAKH TO BE MORE MEASURED IN HIS
COMMENTS ABOUT CABINET OF MINISTERS ACTIONS

Ukrainian News Agency, Kyiv, Ukraine, Wed, May 18, 2005

KYIV - Prime Minister Yulia Tymoshenko has called on First Deputy Prime
Minister Anatolii Kinakh to be more measured in his comments about the
actions of the Cabinet of Ministers. Tymoshenko made the call at a Cabinet
of Ministers meeting on May 18. In particular, Tymoshenko referred to
Kinakh's comments about the Cabinet of Ministers' efforts to resolve the
situation on the market of petroleum products.

"I want to 'thank' Anatolii Kyrylovych for his comments on this issue, that
the government was definitely guilty of these problems. I understand that
we are accepting all the responsibility, but you also understand the
political situation perfectly well and you know where this came from and
how it came," Tymoshenko said.

As Ukrainian News earlier reported, Kinakh recently expressed opposition
to an increase in the authorities' administrative pressure in a bid to
regulate prices on the market of petroleum products in the aftermath of
Russia's decision to increase the export duties on the crude oil being
supplied to Ukraine from USD 103 per ton to USD 136 per ton beginning
from June 1. Kinakh said that such actions by the authorities were resulting
in a deterioration of the situation on the market of petroleum products.

There has been a shortage of petroleum products in Ukraine in the past week.
On May 14, Tymoshenko accused Russia of blocking delivery of crude oil to
Ukraine from May 7 to 12 despite the fact that the contracts for the
deliveries had been financed.

Tymoshenko later said that the Cabinet of Ministers was taking a series of
measures, including importation of additional crude oil and petroleum
products, and that the situation on the Ukrainian market of petroleum
products would stabilize within a few weeks. The parliament lowered the
excise duty and abolished the import duty on high-octane gasoline as well
as on diesel fuel on May 17. -30-
=============================================================
6. PM TYMOSHENKO SAYS SBU INVESTIGATING ORGANIZERS
OF GASOLINE CRISIS IN UKRAINE

Ukrainian News Agency, Kyiv, Ukraine, Wed, May 18, 2005

KYIV - Prime Minister Yulia Tymoshenko has said that the Security Service
of Ukraine (SBU) is investigating the activities of the organizers of the
gasoline crisis in Ukraine. Tymoshenko announced this while opening a
meeting of the Cabinet of Ministers on May 18. "I think that the Security
Service of Ukraine will have its say in the next few weeks regarding how
this crisis was organized. We have unique information about how it was
organized," Tymoshenko said.

Specifically, Tymoshenko said that the Cabinet of Ministers has information
that 30,000 tons of high-octane gasoline are stored at LyNOS and that it is
not being shipped. Tymoshenko said that the SBU would name the organizers
of the gasoline crisis in Ukraine after concluding its investigation.

Tymoshenko noted that the parliament adopted a law on May 17 that would
allow importation of the required quantity of petroleum products into
Ukraine in order to resolve the crisis on the Ukrainian market of petroleum
products. Tymoshenko also noted that President Viktor Yuschenko has
promised to sign this law on May 18.

According to her, the law will be published within the next few days, after
which it will come into force. Moreover, Tymoshenko said that Yuschenko
plans to convene a meeting with the participation of members of the Cabinet
of Ministers, suppliers of crude oil to Ukraine, and the heads of Ukrainian
petroleum refineries at 15:00 on May 19.

As Ukrainian News earlier reported, there has been a shortage of petroleum
products in Ukraine in the past week. On May 14, Tymoshenko accused
Russia of blocking delivery of crude oil to Ukraine from May 7 to 12 despite
the fact that the contracts for the deliveries have been financed.

Tymoshenko later said that the Cabinet of Ministers was taking a series of
measures, including importation of additional crude oil and petroleum
products, and that the situation on the Ukrainian market of petroleum
products would stabilize within a few weeks. The parliament lowered the
excise duty and abolished the import duty on high-octane gasoline as well
as on diesel fuel on May 17. -30-
---------------------------------------------------------------------------------------------------------------
FOOTNOTE: These kinds of actions on the part of the Prime Minister
Tymoshenko remind us far too much of the past. The Orange Revolution
was to bring in a new future, not go back to the past. [EDITOR]
=============================================================
7. RUSSIAN COOPERATION IN ESTABLISHING NUCLEAR FUEL INDUSTRY

Interfax news agency, Moscow, Russia, in Russian, 18 May 05
BBC Monitoring Service,UK, in English, Wed, May 18, 2005

ELEKTROSTAL (Moscow Region) - The TVEL open joint-stock company
is studying the possibility of cooperating with Ukraine's national nuclear
generating company (NAEK) Enerhoatom on the establishment of Ukraine's
own nuclear fuel cycle.

The vice-president of the TVEL corporation, Anton Badenkov, told a news
conference at Electrostal near Moscow on Wednesday [18 May] that this work
was now under way. TVEL and Enerhoatom hope to decide by autumn on
specific projects where mutually advantageous cooperation would be possible.

For his part, the president [listed as "chairman"] of NAEK Enerhoatom, Yuriy
Nedashkivskyy, said Ukraine already has a number of programmes for the
development of a nuclear fuel cycle. "Ukraine's contemporary fuel strategy
is that power generation should be based on two of our own natural
resources - coal and uranium. The proportion of gas and oil used is to be
reduced as much as possible," Nedashkivskyy said.

He did not specify precisely what elements of the nuclear fuel cycle Ukraine
intended to establish on its territory. However, he stressed that the
country did not plan to establish facilities for enrichment and conversion,
for radiochemical production or for the production of plutonium. "Ukrainian
uranium and Ukrainian zirconium will be developed," Yuriy Nedashkivskyy
added.

The president of NAEK Enerhoatom also stressed that, in spite of the
continuing rise of uranium fuel prices on the world market, Ukraine's
nuclear power industry does not face a crisis. One helpful factor is the
successful development of cooperation with Russia's TVEL corporation,
which currently supplies almost all of the uranium fuel used by Ukrainian
nuclear power stations.

In early May Ukrainian Prime Minister Yuliya Tymoshenko instructed the
Ministry of Fuel and Energy to prepare feasibility studies for the
development of individual elements of a national nuclear fuel cycle.

The idea of Ukraine establishing its own nuclear fuel cycle is motivated,
on the one hand, by the presence of uranium and zirconium deposits in
Ukraine and, on the other, by the reduction in world stocks of uranium
and the consequent trend towards increased prices for uranium fuel.

Ukraine currently operates 15 nuclear power generation units, with a
combined capacity of about 14 MW. Atomic power accounts for 53 per
cent of the country's energy balance. -30-
===============================================================
8. UKRAINE MACROECONOMIC SITUATION - APRIL 2005

REPORT: by Iryna Piontkivska, Ediberto L. Segura
SigmaBleyzer Private Equity Investment Group
Kyiv, Ukraine, Wednesday, May 18, 2005

SUMMARY:

1. In February, real GDP growth slowed to 4.5% yoy, bringing the
cumulative figure to 5.5% yoy in the first two months of 2005.

2. On March 25th, Parliament adopted amendments to the 2005 State
Budget envisaging a 1.86% of GDP deficit. Taking into account very
ambitious increases in pensions and the minimum wage as well as
optimistic revenue growth, the new deficit target may be hard to achieve.

3. Inflationary pressures continue to grow; the consumer price index
increased 13.3% yoy in February.

4. The banking system seemed to fully recover from the liquidity crisis
that took place at the end of 2004. Commercial banks managed to restore
their deposit base as deposit growth sped up to 42% yoy in February.

5. On the path to foreign currency market liberalization, the National Bank
of Ukraine (NBU) abandoned its regulation requiring the mandatory sale of
50% of exports proceeds starting April 1, 2005.

6. Good export performance allowed the NBU to replenish its gross inter-
national reserves to $10.94 billion by the end of February.

To read the entire Report with several illustrated charts in color click on:
http://www.sigmableyzer.com/files/Ukraine_Ec_Situation_04_05.pdf
===============================================================
9. INTERPIPE, PRIVAT CLASH FOR 11% OF WORLD FERROALLOY MARKET

Andrey Voltornist, Ukraine Analyst
IntelliNews - Ukraine This Week
Kyiv, Ukraine, Monday, May 16, 2005

Two major financial groups clash

In May, clashes between two financial groups, Interpipe Corporation
(controlled by Viktor Pinchuk) and Privat Group (Igor Kolomyiskyi), around
Nikopol Ferroalloy Plant (NFP), the largest ferroalloy producer in Ukraine,
became more intense. Two years after the sale of the last state-owned stakes
in the plant, Privat seems to have decided to gain control over the
metallurgic asset. The situation around NFP is tangled. Both Interpipe and
Privat own stakes in the plant. The first has about 73%, while the latter –
27%.

World market of ferroalloys in recession this year
NFP becomes a world leader in 2004

The situation on the world market of ferroalloys worsened significantly this
year and prices dropped almost 2-fold already. At that, the economic
situation had improved greatly in 2004. However, of all Ukrainian large
ferroalloy producers, only NFP achieved positive financial results. Its
revenues rose 2.98-fold and totalled UAH 107mn in 2004.

Moreover, net profits jumped 3.38-fold to UAH 70.5mn. Production volumes
rose 17.6% y/y to 1.023bn tons of ferroalloys, which enabled NFP to surpass
French integrated mining and metallurgy group Eramet and become # 1 in the
world, having 11% of the market.

In 2004 the plant produced 708,000 tons of silicomanganese (against 650,200
tons in 2003) and 314,400 tons of ferromanganese (219,500 tons in 2003).
Accounts receivable increased by 74.7% y/y, making up UAH 443.8mn (USD
83.65mn) as of Jan 1, 2005, while accounts payable – by 56.7% to UAH
228.3mn.

Privat’s industrial chain fails to do well in 2004

In 2004 NFP achieved 5% profitability, while Zaporizhe (ZFP with annual
capacity of 550,000 tons) and Stakhanovskyi (SFP) ferroalloy plants
demonstrated -4% and -5% respectively. And this is amidst high domestic as
well as foreign prices of the output (USD 1,000 per ton and USD 900 per ton
on the local and foreign markets). At that, it is believed the cost price of
a ton of ferroalloy output does not exceed USD 400 for NFP.

It is even less for ZFP and SFP, which are managed by Privat group, owner of
Ordzhonikidze and Marganets ore mining and enrichment plants (OMEPs). ZFP
suffered losses of UAH 157mn and SFP – UAH 29mn in 2004. It is a surprise
that Privat created a production chain (from extraction to production), but
failed to earn profit in a favourable year, isn’t it?

Interpipe successfully manages NFP since 1999

Interpipe has been managing NFP for the last 6 years. In 1999 a controlling
stake in the plant was passed over to Kredit Dnepr bank. In 2003 government
decided to sell its 25% blocking stake in NPF. As the metallurgic plant is a
strategic object, some strict requirements were introduces.

Thus, a potential candidate should have had a successful experience in
running a controlling stake in ferroalloy plant with annual capacity of at
least 350,000 tons. At that, the candidate was not to be an offshore
company. Main (and later the only) candidate was consortium Pridnestrovie.

It was established by companies affiliated with Interpipe. Pridneprovie won
the tender. Later, it purchased another 25%+1 share stake in NFP. The total
sum, spent for obtaining the controlling stake, amounted to UAH 410mn. State
Property Fund (SPF) rejected applications of ZFP, SFP, Privatbank, and
Prominmet company. Privatbank offered USD 100mn for each of the 25%
stakes.

NFP intends to strengthen its leading position

NFP holds leading positions in the domestic sector in terms of wages. Thus,
the average wage surged 11.5% y/y to UAH 1,053 in 2004 and another 23.4% ytd
to UAH 1,300 in Q1/05. State and local budgets received UAH 154.3mn in 2004,
including UAH 36.5mn corporate profit tax payment and UAH 44.7mn taxes on
salaries.

The strategic aim of NFP is obtaining 20-25% of the world market. To achieve
the target, the plant’s top-management worked out a long-term plan of
development. According to it, the metallurgic enterprise will invest over
USD 100mn in modernization, including USD 30mn – in developing new
segments of ferroalloy products. Besides, NFP started introducing technology
innovations. The enterprise intends to use ferroalloy gas for electricity
generation and decrease air pollution.

Interpipe concerned about threat of forced seizure of NFP

NFP scheduled a shareholder meeting for May 5. However, rumors appeared
that another shareholder meeting might be held in Ordzhonikidze
(Dnipropetrovsk region). As a shareholder meeting can be arranged by a 10%
stockholder, Interpipe first deputy BoD chairman Maksym Basov assumed this
meeting is initiated by Privat group. He underlined the meeting may be part
of Privat’s plan to obtain a control over NFP. According to Basov, Interpipe
now holds over 70% of NPF’s shares.

50%+1 share are owned by Pridneprovie consortium, which is not going to take
part in the meeting of the plant's shareholders in Ordzhonikidze. According
to Basov, the only chance for Privat group to hold the meeting is
participation of State Property Fund (SPF). However, Basov did not believe
that SPF will take part in the meeting.

Ex-registrar Slavutych Registrar might grant SPF controlling stake

Why was Basov so nervous about the alternative shareholder meeting? If
SPF participates in the meeting in Ordzhonikidze, it might get a 50%+1 share
stake in NFP. How is it possible? Slavutych Registrar company hold the
register list before 2003, when it was discharged by court and replaced by
another registrar while the register list was announced lost. So, there was
a hypothetic chance that the ex-registrar might participate in the meeting
and proved that SPF still owns the controlling stake in NFP.

Meeting in Ordzhonikidze failed due to lack of shareholders

On May 5, there was an attempt to hold a general meeting of NFP’s
shareholders in Ordzhonikidze. An entrance to the building, where the
meeting was supposed to take place, was blocked by workers of
Ordzhonikidze and Marganets OMEPs, who refused some shareholders,
MPs, and journalists to enter the building. The situation heated up and
resulted in clashes. Militia had to interfere in the situation and managed
to separate the sides. However, there was no quorum to register the
shareholder meeting.

SPF decides to act in accordance with law

A representative of SPF came but did not take part in the registration
procedure (due to direct order of Valentina Semenyuk, head of SPF?)
Privat group representatives said that registration will last as long as it
is required for SPF to register. Anyway, Semenyuk later claimed that any
attempts of pressure SPF from the side of different financial groups in
order to obtain beneficial decision will yield no result. According to her,
SPF intends to act within the legal frames. SPF does not want to worsen
the situation and stands for preventing social tensions at NFP and in the
region.

Tymoshenko: government must own 50%+1 share stake in NFP

On May 11, PM Tymoshenko said that she was sorry that certain officials
did not participate in the meeting as they had possibility to obtain control
over 50%+1 share. She underlined that the PM has no right to represent SPF
or State Commission for Securities and the Stock Market (SCSSM), but there
are documents, which allow government to gain a controlling stake in NFP.

In this case government can receive an additional USD 550mn to the budget.
Tymoshenko also stressed that if SPF had participated in the meeting the
state would have appointed new director of the plant and the supervisory
board. It was done consciously. Tymoshenko added that in the future
government will get rid of these rudiments.

SCSSM decides to investigate NFP’s share registrars

On May 13, Mykhailo Nepran, head of SCSSM, announced to journalists that
the commission will investigate the situation around NFP. It wants to
examine both registrars: Slavutych Registrar, the old one, and Alfa Invest
company, the current one. Nepran also underlined that SCSSM’s
representatives were denied access to the meeting of NFP’s shareholders,
which took place in Nikopol on May 5. He also stressed there were created
2 working groups to investigate the situation. SCSSM is not on the side of
either Interpipe or Privat Group, he said. Nerpan also believes that the
investigation will clarify the situation within a week.

NFP uses production of goods made on commission

Here we must mention goods-made-on-commission type of trade, which is
used by NFP. The enterprise switched to that type of trade. The reason for
this is manganese ore supply problem. The history of the conflict goes back
to 2002, when NFP started to lack supplies from Ordzhonikidze and Marganets
OMEPs.

NFP pays corporate tax only from that sum of money, which it gains from
processing of ore made on commission, while in 2004 ZFP and SFP did not
pay it at all. This fact does concern the new government, which constantly
searches for extra revenues for the state budget.

However, in mid-March BoD chairman of NFP Vladimir Kutsyn announced that
goods-made-on-commission type of trade became outdated and inefficient.
But it cannot be cancelled right now as it will significantly damage the
resource supply of NFP’s capacities. The plant intends to buy only 800,000
tons of the ore on the domestic market (about 1/3rd of its annual needs).

Thus, Steelex, Interpipe trader, will import about 1.5mn tons of manganese
ore from Ghana, Gabon, and Australia and to export about 700,000 tons of
ferroalloys due to tolling, declaring an indicative price of USD 600 per
ton. It should be noted that by now NFP is ready to buy manganese ore from
Ordzhonikidze and Marganets OMEPs on the government level but now Privat
Group refuses.

Still, on one hand, it is not correct to blame for that Interpipe only.
Privat’s OMEPs refuses to supply NFP with their ore. It seems that
Kolomyiskyi is so eager to get NFP that he is ready to kill it by not
shipping the ore. Kutsyn confirmed that the plant has signed contracts until
end of Q3/05. By that moment Interpipe and Privat did not reach an
agreement on ore supplies.

On the other hand, it is not correct to blame Privat, as when NFP switched
on goods-made-on-commission type of trade, the OMEPs suffered multimillion
losses and had partly to reduce production, which decreased profitability.

Government wants to prohibit this scheme and obtain control over the
segment Privat waits for NFP’s re-privatization

Ministry of industrial policy tries to regulate the situation but it is far
from improving. This does not yet include cancellation of goods-made-
on-commission type of trade, which is obviously the government’s
dream. Worth noting, deputy industrial policy minister Sergei Grischenko
noted that he plans to search for a win-win solution between producers and
consumers of manganese ore. Another reason is the re-privatization mood
of government and the crisis in the sector.

Interpipe and Privat wait for what PM Yulia Tymoshenko will say and hope the
conflict will be decided in their favor. However, it seems that government
has a strong intention to close goods-made-on-commission type of trade and
substitute it for indicative prices. Also there is a possibility that
government will strictly monitor contracts between producers and
intermediary companies. In that case, government may remain neutral but
keep control over the strategic sector of the economy.

In our view, manganese ore supplies from Privat’s OMEPs will hardly start in
the nearest future as the group wants to remove Interpipe from NFP.
Kolomyiskui will delay the negotiation process as long as it is possible and
continue pressure on his competitor. Privat is obviously waiting for
re-privatization of NFP and hopes to benefit from asset redistribution. -30-
===============================================================
10. PROFILE: UKRAINIAN PRIVATIZATION CHIEF VALENTYNA SEMENYUK
Semenyuk prefers state property to private ownership.

BBC Monitoring research, 18 May 05
BBC Monitoring Service, UK, Wed, May 18, 2005

Valentyna Semenyuk, the head of the State Property Fund, represents the
Socialist Party of Ukraine (SPU) in the government of President Viktor
Yushchenko. She is a consistent supporter of the notion that as many
companies privatized with violations as possible should be either
re-nationalized or re-privatized. As a representative of leftist ideology,
Semenyuk prefers state property to private ownership.

Semenyuk was born in a small village in the northern agricultural Zhytomyr
Region on 4 June 1957. She graduated from the Zhytomyr Agricultural
Institute in 1982, majoring in Economics. Semenyuk continued her studies
in the 1990s, and she graduated from the Yaroslav the Wise Legal
Academy in Kharkiv in 1999.

Semenyuk started her working career as a clerk at her native village's
administration at the age of 17, simultaneously heading the local drama
society. In 1982 she started off as an accountant at Ruzhyn District's
agricultural department in Zhytomyr Region and climbed the career ladder
in the local administration to the position of Ruzhyn District's chief
economist.

Semenyuk came to politics in the wake of Gorbachev's perestroika. In
1990-91 she was a secretary of the Ruzhyn District Communist Party of
Ukraine (CPU) Committee. In 1993 Semenyuk was elected first secretary
of the Ruzhyn District CPU Committee. In 1994 she was for the first time
elected to Ukraine's parliament, as a representative of the CPU. Once in
parliament, she swapped her party affiliation, joining the SPU faction.
Semenyuk was re-elected to parliament in 1998 and 2002 from the SPU's
list.

During the 2000-01 mass protests against the then President Leonid Kuchma,
Semenyuk was a member of the Ukraine Without Kuchma public committee.
She was beaten in the 9 March 2001 clashes between riot police and radical
oppositionists, and spent some time in hospital.

In 1998-2002 Semenyuk worked on parliament's agricultural committee. In
2002 she was elected head of parliament's special monitoring commission
for privatization. Since then she has actively opposed the privatization of
big companies, especially the sale of the Kryvorizhstal steelworks to a
consortium linked to the Ukrainian tycoons Rinat Akhmetov and Viktor
Pinchuk in 2004.

On 7 April 2005 parliament approved Semenyuk as Yushchenko's choice for
the post of State Property Fund head by 313 votes in the 450-seat body. In
her first interviews after the appointment, Semenyuk said that compilation
of a register of state property would be her first step in the new position.
She also spoke for passing a law on the management of state holdings in
private companies.

Semenyuk believes that "companies that are on the bottom" should be
privatized first of all, while the privatization of strategic assets, like
Ukrtelekom, should be stopped, and Kryvorizhstal should be re-nationalized.
In an interview that Semenyuk gave to the economic weekly Invest-Gazeta in
February, Semenyuk also named several ore dressing plants, Mykolayiv
Alumina Plant, Zaporizhzhya Aluminum Plant, Nikopol Ferroalloys Plant
and Black Sea Shipyards among the companies that should be re-
nationalized.

Semenyuk reportedly has no private business interests. She is married,
with two daughters. -30- [Action Ukraine Report Monitoring Service]
===============================================================
11. UKRAINIAN PRIVATIZATION "BLACK LIST" LEAKED
List of twenty-nine companies

Kommersant web site, Moscow, in Russian 18 May 05
BBC Monitoring, UK, in English, Wed, May 18, 2005

The influential Russian business daily Kommersant has published what it
says is a leaked list of 29 companies in Ukraine whose privatization will be
reviewed by the new government. Ukrainian officials had previously
confirmed the existence of the list but refused to say which companies
were on it. Kommersant said it received the list from a source in the
Ukrainian president's secretariat. Four of the companies are Russian-
owned, the paper said.

President Viktor Yushchenko called last month for a definitive list of
privatization deals subject to review to be published in order to end
uncertainty among investors. But Prime Minister Yuliya Tymoshenko
expressed doubts about the legality of such a list. She said that in order
to avoid accusations of bias, the cabinet of ministers would instead
submit a bill to parliament setting out clear criteria for a review of
dubious privatization deals.

Reversing controversial sales of big companies during former President
Leonid Kuchma's tenure is one of the new government's key policy
priorities. But the government indicated that it would allow the present
owners to keep their assets if they meet the highest bid at an auction and
pay the difference between the price they paid and the real market price.
It also stressed that there would be no massive reprivatization campaign
in Ukraine.

The following is the list of companies published by Kommersant:

Open Joint Stock Company Kryvorizhstal - (steel giant sold to a consortium
of Ukrainian tycoons Rinat Akhmetov and Viktor Pinchuk)
Open Joint Stock Company Central Ore Enrichment Plant
Open Joint Stock Company Nothern Ore Enrichment Plant
Open Joint Stock Company Inhuletskyy Ore Enrichment Plant
Open Joint Stock Company Sukha Balka Ore Enrichment Plant
Open Joint Stock Company Kryvyy Rih Iron Ore Plant
Open Joint Stock Company Novotroitsk Ore Directorate
Open Joint Stock Company Dokuchayiv Dolomite Flux Plant
Open Joint Stock Company Kryvbasvzryvprom [Kryvyy Rih Basin Explosive
Industry]
Open Joint Stock Company Nikopol Ferrous Alloys Plant (owned by Ukrainian
tycoon Viktor Pinchuk)
Open Joint Stock Company Severodonetsk Azot Plant
Open Joint Stock Company Zaporizhzhia Aluminium Plant (Russian-owned)
Open Joint Stock Company Mykolayiv Alumina Plant (Russian-owned)
Open Joint Stock Company Lukor (Russian-owned chemicals company)
Open Joint Stock Company Rosava (Russian-owned car tyre manufacturer)
State Company Black Sea Shipyard
Halychyna Oil Refinery
Open Joint Stock Company Rivneazot
Open Joint Stock Company Dnipropetrovsk Dzerzhynskyy Metallurgical Plant
National Joint-Stock Insurance Company Oranta
Open Joint Stock Company Nikopol Southern Pipe Production Plant
Open Joint Stock Company Pure Metals
Open Joint Stock Company Azovmash
Open Joint Stock Company Kherson Shipyard
Open Joint Stock Company Rubizhne Cardboard Plant
Open Joint Stock Company Kherson Cotton Plant
Open Joint Stock Company Ukrpapirprom [Ukrainian Paper Industry]
Irshansk Ore Enrichment Plant
Volnohirsk Ore Enrichment Plant -30-
===============================================================
12. SOFTWARE SECTOR FEARS $200 BILLION PIRACY LOSSES
90% of software in Vietnam, Ukraine, China and Zimbabwe is illegal
87% illegal in Russia

By Maija Pesola in London, Financial Times,
London, United Kingdom, Wed, May 18 2005

More than a third of all software used on personal computers around the
world last year was pirated, representing a loss of nearly $33bn to the
industry, a new study claimed on Wednesday. The survey conducted by the
Business Software Alliance, an industry lobby group, and the technology
research house IDC warned that losses to the software industry could climb
to $200bn in the next five years.

Vietnam, Ukraine, China and Zimbabwe emerged as countries with the
highest software piracy: more than 90 per cent of their software was
illegal. In contrast, the US has the world's lowest piracy rate at 21 per
cent. In the EU, the average is 35 per cent.

The overall global percentage of pirated software fell marginally in 2004
compared with 2003 from 36 per cent to 35 per cent. The BSA said piracy
rates reflected the strength of software copyright laws in different
countries.

It said: "History shows that strong legislation is the key. In the US, heavy
penalties for infringements send a clear message that piracy will not be
accepted." The United Arab Emirates, for example, had a lower piracy rate
than neighbouring countries 34 per cent compared with an average 58 per
cent for the Middle East and Africa thanks to strict intellectual property
laws adopted in the 1990s.

The BSA said it was hopeful that piracy rates would begin to decline in
Russia where 87 per cent of software is illegal following the introduction
of copyright legislation last year. Vietnam, which is keen to join the World
Trade Organisation by the end of this year, is under pressure to demonstrate
a stronger commitment to protecting intellectual property rights, as a
precondition to joining the global trading body.

China is often criticised on this front by US and European trade officials.
Although China regularly publicises large-scale crackdowns on pirate
manufacturers and at the end of last year made intellectual property
infringements more punishable by law, enforcement is weak and tasks are
often juggled between different government agencies. (Additional reporting
by Amy Kazmin in Bangkok and Andrew Yeh in Beijing) -30-
===============================================================
13. A SONG FOR EUROPE IN THE WAKE OF REVOLUTION
50th Eurovision song contest celebrated this Saturday in Kiev.
Ukrainian novelist Kurkov gives insider's guide to host capital

By Andrei Kurkov, Guardian Unlimited Travel/Cities
The Observer, London, UK, Sunday May 15, 2005

The shop windows of Kiev are being cleaned, the boats that take tourists up
and down the river have been given new coats of paint and even the golden
domes of the churches seem to be shining brighter than they ever did in the
time of former President Leonid Kuchma. The Eurovision song contest is
finally coming to Ukraine.

Invigorated by the experience of the Orange Revolution, when half a million
people occupied Kiev's main square in November to protest at rigged election
results, the people of Kiev are now expecting something revolutionary from
the Eurovision. Even intelligent people with good taste in music have taken
to pronouncing Eurovision in respectful tones, but it is really the 'Euro'
bit of the word that they revere. Even before the events of November, most
Ukrainians considered themselves European, but it took a revolution to
attract Europe's attention to this country.

During the Orange Revolution, protesters set up a 'tent village' on the
city's busiest street, Khreschatyk, and a similar method of protest has been
taken up by those opposing Viktor Yushchenko's new government. They have
pitched their tents opposite the cabinet of ministers' building, though the
tents are usually empty. Another tent protest continues outside the mayor's
office. This one is organised by revolutionaries unhappy with the mayor.

More recently, a new tent-city has sprung up on Trukhanov Island in the
river Dnepr, but this one is to cater for the anticipated influx of
Eurovision visitors, offering budget accommodation for Euro 10 a day and a
programme of entertainment.

When chatting to an American friend of mine and his 16-year-old son recently
in Paris, the son asked his father: 'So when did they discover Europe?' The
father laughed and looked to me to provide a response. After a moment's
hesitation I said: 'Western Europe was discovered a long time ago, even
before America, but Eastern Europe is still being discovered and very slowly
at that.'

Kiev has 1,500 years of history and is the 'birthplace' of Christianity in
Europe. The Dnepr, which skirts the hilly centre of town, was once part of
the trading route between Scandinavia and Greece. I have the impression that
the descendants of those traders can now be found doing their business in
the Argentinean restaurant in Podol. Podol is the 'lower town'. It was once
the Jewish quarter and it has remained almost unscathed by 'Soviet
architecture'. There are plenty of cosy and modestly priced cafés,
restaurants and bars, and churches of a dozen different denominations,
synagogues and the Chernobyl Museum peacefully co-exist.

The Upper Town, which lies between the Pechersk Lavra ( Pechersk
Monastery) and the 11th-century St Sophia Cathedral, has always been the
more aristocratic part of town. Most government offices are located here,
including the grey Stalinist building that was used by the Gestapo during
the war and then repossessed by the KGB. That building now houses the
Ukrainian version of the KGB, the Ukrainian Security Service. Judging by
interviews given by a number of top generals, this organisation played a
significant role in the 'orange victory'.

The best known - and the steepest - street in Kiev joins the lower town and
upper town and is called Andreivski Uzviz (Andrei's descent). Once formed
by a river, this cut in the hills now provides for the ambling movement of
tourists and off-work Kievites between the two parts of the city. People
tend to walk down this street slowly. There are over a dozen art galleries,
a similar number of restaurants and several museums.

The most famous museum, the Bulgakov, is at number 13. It was this house
and, indeed this street, that Mikhail Bulgakov describes in his novel The
White Guard. After independence in 1991, the first to arrive on the street
were the souvenir traders, followed quickly by the protection racketeers,
who also saw profit in the souvenir business. The racketeers are long gone,
or are now manning the bigger souvenir stalls where the matrioshki (Russian
wooden nesting dolls) reflect every shade of today's political reality -
Putin, Bush, Osama bin Laden and Saddam Hussein - and it is amusing to
guess who is inside whom. But if you want a more authentic, Ukrainian
souvenir, go for the pisanki painted eggs or embroidered shirts and blouses.

Kiev is beautiful in May. This is the time when the chestnut trees and lilac
are in bloom in the city's many parks and squares. In one of them, just
opposite the 'Red' building of Kiev state university, you will find the
outdoor chess club. Every day, for the last 50 years, chess enthusiasts
have come here to play for money and for sport.

Then there's the Hydropark on an island in the Dnepr. This is a place for
sport and drinking. In winter the island is frequented by 'walruses' (folk
who enjoy plunging into the ice-cold river water). In summer the smell of
shashlik kebabs and the huge numbers of visitors makes it the favourite
haunt of Kiev's tramps and homeless children.

The pagan love of all things underground has influenced the development
of the city. An underground labyrinth of hermit dwellings and burial places
built by Christian monks from the 13th to 17th centuries, stretches for
miles in the hills above the Dnepr. A part of this underground is owned by
the Kiev Pechersk Lavra (monastery) and it still houses the remains of
sainted monks. These 'caves' can be accessed via the monastery. All
you need to do is buy a candle.

The walk through the dark passages from one coffin to the next is a dubious
pleasure. I got lost down there as a boy and wandered about for three hours
trying to find an exit. No horror movie I have seen since comes close to
having the same effect.

Ukraine's black soil is so fertile that the occupying Nazis tried to export
it in bulk to Germany. Food supply should never have been a problem for this
country. None the less, Stalin succeeded in inducing two terrible famines,
in 1933 and in 1947, which claimed the lives of some three million people.

Food is an important part of Ukrainian culture. Home cooking is most
respected and there is no tradition of restaurant going among ordinary
people. Among the new business elite, however, there's a tendency to
stay in restaurants day and night.

First stop for most visitors arriving in Kiev for Eurovision will be the
Maidan (Independence Square); the venue for the most peaceful revolution
ever. The revolutionary graffiti on the wall of the main post office has
been covered with Perspex to save it for posterity. Nearby, 'orange'
souvenirs can be purchased - cups and plates with pictures of President
Yushchenko and the new Prime Minister, Yulia Timoshenko, and compact
discs with the hits of the revolution, one of which, in a more peaceful
version, will represent Ukraine in this year's Eurovision. -30-
------------------------------------------------------------------------------------------------------------
Andrei Kurkov's novels include the best-selling "Death and the Penguin"
and its sequel, "Penguin Lost." "A Matter of Death and Life" was recently
published in English for the first time.
--------------------------------------------------------------------------------------------------------------
Gold top ... The domed Pechersk Lavra (Monastery of Caves) sits over
some of Kiev's many catacombs. Photograph: Efrem Lukatsy/AP
http://travel.guardian.co.uk/cities/story/0,7450,1484164,00.html
===============================================================
14. WHAT WILL TERRY WOGAN THINK? EUROVISION MEANS
FROTHY POP, DOESN'T IT?
Not any more. Dorian Lynskey reports from post-revolution Ukraine

By Dorian Lynskey, The Guardian
London, United Kingdom, Thursday, May 19, 2005

On the souvenir stalls of the Maidan Nezalezhnosti, Kiev's Independence
Square, the two key events of the city's recent history sit side by side.
Mugs and T-shirts bearing the logo of the imminent Eurovision song contest
nestle between mementoes of last winter's orange revolution, which locals
call "the Maidan".

There are scarves printed with revolutionary mottoes and flattering
portraits of President Viktor Yushchenko, whose disputed election defeat by
the incumbent's chosen candidate, Viktor Yanukovich, triggered massive
demonstrations in the square and the end of a decade of political corruption
in Ukraine.

It has been the unenviable task of Svante Stockselius to try to separate the
two. In March, Stockselius, the executive supervisor of Eurovision, decreed
that the contest be "non-political" after the shock winners of the poll to
find Ukraine's entrant were a trio called GreenJolly, with their orange
anthem, Razom Nas Bahato (Together We Are Many).

One verse ran: "No falsifications! No lies! No machinations! Yes Yushchenko!
Yes Yushchenko! This is our president!", which certainly makes a change from
Boom Bang-a-Bang. "If it is political propaganda, then it might be against
the rules," Stockselius fumed. Holding back the tides of politics six months
after a revolution, however, is the kind of challenge only King Canute would
propose.

It may seem bizarre that a country's new cultural era should begin with an
event customarily associated with kitsch outfits and appalling lyrics, but
that is how the cards have fallen. One of Yushchenko's first actions after
taking office on January 23 was to affirm his government's commitment to
hosting Eurovision (slogan: "Awakening"), acknowledging that this is
Ukraine's chance to show off its best side and move closer to its goal of
EU membership.

Ukraine is the largest country in Europe and one of the least well known. In
2002, a continent-wide survey of attitudes to the country yielded the
dismaying news that most people associated it with the 1986 Chernobyl
disaster and the endemic corruption of former president Leonid Kuchma's
regime. If, that is, they associated it with anything at all.

"The first ambition is to show people from Europe that Ukraine exists, that
it is a normal country with normal people," says Dr Oleksandr Sushko of the
Centre for Peace, Conversion and Foreign Policy of Ukraine, a Kiev-based
think tank. "The major problem was not the bad reputation of Kuchma - the
country was unknown. I am not a fan of Eurovision as a style of music, but
it is very nice that so many young people are coming here."

Like the process of reforming Ukrainian politics, this year's contest has
been a bumpy ride. The press has pounced on any hint of scandal. Amid
rumours of ticket mis-selling, vote-rigging and spiralling costs, it was
reported that the European Broadcasting Union was ready to move the
whole contest to Malmo in Sweden.

At the Palace of Sports a week before the contest, however, everything
seems to be going swimmingly. The Soviet hulk has been renovated and
swathed in green, the official colour of this year's contest (orange makes
only a small, if potent, appearance in the logo). On the hi-tech stage, amid
a dizzying whirl of revolving screens and tilting mirrors, dress rehearsals
are taking place. Suntribe appear to be the Estonian Girls Aloud, and Wig
Wam are definitely the Norwegian Darkness.

It's business as usual in the press pack, too. Most of the 1,500 accredited
journalists are Eurovision fans, and at the press conference for Belarus's
entry, former model Angelica Agurbash, there is a conspicuous lack of
questions about her autocratic homeland's crackdown on rock bands who
support the opposition. Instead, an interviewer from Cyprus begins his
interrogation with the zinger: "First I want to say how beautiful you are."

That's Eurovision for you. During its 50 years, politics have traditionally
been confined to the blatantly partial voting, in which countries reliably
confirm old loyalties and enmities. Only rarely has a song carried a
political message: Portugal's 1974 entry, After Goodbye, was the coded
signal to launch a coup against the country's rightwing dictatorship, and
Bosnia-Herzegovina funnelled the trauma of war into The Whole World's
Pain in 1993.

There was nothing contentious about last year's Ukrainian offering. Ruslana
Lizhichko was only the country's second-ever Eurovision entrant when her
Wild Dances stormed to victory in Istanbul, instantly making her a national
hero.

Like most pop icons, Ruslana is tiny. Dressed in jeans and T-shirt rather
than her customary medieval leather, she shows off a shelf laden with
accolades. Jostling with the usual industry trophies are more singular
honours: a certificate naming her a Unicef goodwill ambassador (she
campaigns on behalf of the children of Chernobyl), a flag from the activist
organisation Pora and an orange medal awarded by Yushchenko's
government in recognition of her support.

Last November, despite Yanukovych's attempts to co-opt her popularity,
Ruslana appeared in Independence Square to announce a hunger strike in
protest at the election result. She plays me a DVD that shows her standing
on stage in an orange jumper, singing through a megaphone and greeting
Yushchenko in front of cheering crowds.

Did she consider herself political before then? She shakes her head. "I was
never involved in politics. I see myself only as a singer." But we're
watching her on screen in the heart of a revolution.

"Psychologically speaking, the orange revolution was unique," she explains.
"The Ukrainian nation is very peaceful and calm. We don't like ups and
downs. A lot of Ukrainians still don't believe that they all went out into
the street."

Ruslana was one of the reasons they did. The Maidan was a very modern
revolution, broadcast on giant screens. As the protesters shivered, popular
bands such as 5'nizza and Tartak performed in aid of Yushchenko. Ruslana
remembers receiving panicky calls from musicians who had initially backed
Yanukovich and now wanted to come to the Maidan but feared the crowd's
reaction.

"A lot of people think that this revolution was so widely successful only
because there was music in Maidan and people could get away from the
stress of the situation," says GreenJolly's frontman, Roman Kalyn, sitting
in a cafe near the Palace of Sports. "Everybody involved in those free
concerts was putting themselves in jeopardy because nobody knew how
the revolution would end."

GreenJolly owe their success to the Maidan. They have been together since
1997, specialising in Ukrainian comedy reggae - a genre of somewhat limited
appeal. During the early days of the revolution, however, Kalyn, Roman
Kostyuk (guitar) and Andriy Pisetskyi (keyboards and saxophone) wrote
Razom Nas Bahato in just four hours, channelling key war cries into an
infectiously strident hip-hop track. When a local radio station posted it on
its website, the track became an anthem overnight. The next day GreenJolly
performed it in Independence Square to 50,000 protesters; a few days later
the crowd had swollen to half a million.

Razom Nas Bahato missed the Eurovision heats but was entered for the final
vote, allegedly at the behest of deputy prime minister Mykola Tomenko. It
beat the glamorous favourite, Ani Lorak, who publicly backed Yanukovich
during the Maidan and complained that she lost phone and text votes due to
suspicious technical problems.

It's a touchy subject with GreenJolly. "Ani Lorak lost because she selected
a song that was not her best," says Kalyn. "We believe our song won, not the
political position."

GreenJolly's victory didn't upset just Lorak - who burst into tears - but
also Svante Stockselius, who demanded that they write new lyrics. The band
duly took out Yushchenko's name, but their insistence that "the song doesn't
contain any politics any more" is less than persuasive, given that the first
line is: "We won't stand this - no! The revolution is on!"

The selection process controversy has been just one of several headaches
for Pavlo Grytsak, the contest's 25-year-old executive producer. Early
preparations were mishandled by the state television company, NTU, and
understandably sidelined during the Maidan. Since being appointed NTU's
vice-president in January, Grytsak has conjured up Ukraine's biggest ever
entertainment event from next to nothing. It is certainly the biggest
challenge Kiev's tourism industry has faced. Every hotel room in the city
has been snapped up and 5,000 extra fans will be housed in a specially
constructed tent city called EuroCamp. The total television audience is
expected to top 120 million.

As the finals approach, the speed at which Grytsak dispatches cigarettes
and cups of coffee betrays the strain he is under. However, he cheerfully
counters all the rumours with: "There are no big projects without big
problems." So, yes, there were problems with online ticket sales but that
was only because high demand made the servers crash. Yes, costs rose,
but the contest has come in under its final budget of 104m Ukrainian
hrivnias (pounds 11m).

No, he was never officially informed about moving the contest to Sweden.
And no, GreenJolly's victory wasn't fixed. "Actually, I'm not a big fan of
GreenJolly, but people voted for them," he says. "Hundreds of thousands of
people were standing in the square in the snow and rain and GreenJolly were
singing for them. This is about social and emotional links, not only about
the music."

So is Stockselius doomed in his quest to make Eurovision politics-free? "I
appreciate Svante's position," Grytsak says evenly. "We agreed that it
shouldn't be a political project, but after such a turbulent time it cannot
only be an entertainment project. It is a social project. [The Maidan] was
not only about political issues, it was about social and cultural changes as
well."

Walking through Kiev as the sun reflects off the glass domes of Independence
Square, you can sense the buoyant new mood. Six months after the Maidan,
there is a stage in the square once more, but this time its purpose is
simply to showcase Ukrainian bands rather than to orchestrate a revolution.

"The people who promote democracy and freedom of speech have won,"
says Kostyuk. "Absolutely everything has changed." -30-
===============================================================
15. KIEV NOW TAKES ON A MUSICAL REVOLUTION

By Natalia A. Feduschak in Kiev, The Washington Times
Washington, D.C., Wednesday, May 18, 2005

KIEV -- Ukraine is about to pull off a coup that may be more challenging
than its Orange Revolution last winter: hosting the Eurovision Song Contest.
With one day left before the semifinal, Kiev has taken on the air of a busy
house staff preparing for a major party. Contestants hold dress rehearsals
while construction workers hammer, haul wires and install lighting at the
Sports Palace, where the contest will be held.

Kiev's main boulevard, Khreshchatyk, which only months ago was blocked by
thousands who camped out in tents to protest falsified elections, has been
torn up and repaved. Oversized blue and green banners touting Eurovision
are being draped over buildings. All of this is an effort to show that
Ukraine is under new management and open for business.

An oddity to Americans, the Eurovision Song Contest for 50 years has been
a huge attraction in Europe, where millions tune in on television to pick
the continent's best song. The international careers of Celine Dion, Abba
and other artists have been jump-started by Eurovision victories.

Ukraine first participated in the contest two years ago with a respectable
showing. Last year's entry, Ruslana, surprised nearly everyone by winning
Eurovision and bringing the contest to Ukraine this year.

Kiev's city administration immediately started fretting about the show, but
Ukraine's tense political showdown last year meant that organizational work
didn't begin in earnest until three months ago. Worried that Ukraine
wouldn't be ready in time, Eurovision's management was about to change the
venue to Switzerland when the new president, Viktor Yushchenko, convinced
them his country was up to the challenge. Since then, crews from 50
companies have worked around the clock to refurbish Kiev's Soviet-style
Sports Palace as the country has counted down the days.

With last winter's dramatic political events in mind, a tent city also has
been erected on a Dnipro River island, where about 5,000 of the expected
40,000 visitors will find a cheap place to stay and a chance to relive the
spirit of Ukraine's Orange Revolution. "We are here because we want to feel
what demonstrators felt," said Alexsei Koshovoy, 24, who with two friends
was the first to arrive at the camp on Saturday morning.

Ukraine's Eurovision entry this year has raised questions. The band Green
Jolly, whose song "Razom Nas Bahato" became the anthem of the Orange
Revolution, was slipped into the national final in February, bypassing the
regular competition. The group then had to change some of its song's
revolutionary lyrics to reflect the supposedly nonpolitical spirit of
Eurovision. The group has remained unfazed by the negative publicity about
the song. "People like the melody," lead singer Roman Kalyn said. -30-
===============================================================
16. 'OUR HEART IS IN EUROPE, OUR SOUL IN UKRAINE!'
Ukrainian Eurovision Song Contest Representatives GreenJolly

Written by Sietse Bakker, ESCTODAY.COM,
Your Daily Eurovision Centre, Focus on Eurovision Song Contest!
Europe, Tuesday, 17 May 2005

KYIV - Standing in front of Hotel Ukraine at Independence Square, Kyiv, it
looks like a square like any other square in big European cities. It was the
place where, last year, Ukrainians gathered to protest against the election
results. Although the revolution itself is over, the real changes take much
more time.

We spoke with GreenJolly, the Ukrainian Eurovision Song Contest
representatives, about the Orange Revolution, their song, their future plans
and the upcoming contest!

Ukraine and the contest Roman Kalyn, Roman Kostyuk and Andriy Pisetskyi
are the three members of GreenJolly. We met in front of the Monument of
Independence at Maidan Nezalezhnosti, better known as Independence
Square. Within minutes, people approached them for autographes, which
made clear that the group is very popular among the locals.

Razom nas bahato is a song about revolution. What's the meaning of the
song for you guys?
[GreenJolly] Initially, the song was about revolution. We tried to move away
from the political issues to a more freedom supporting song. See it like a
European song of freedom! We just returned from our European promotion
tour and we found out that no matter their age, people sing along the song.
At the end, we feel proud that Ukraine chose this song and we are confident
that they made the right decision. Not only for Ukraine, but also for the
rest of Europe.

Tell us something about GreenJolly's recent developments!
[GreenJolly] The band was founded eight years ago and since we got selected
to participate in the Eurovision Song Contest. Everything went really fast.
There is a marketing strategy behind the band, we are working on an album
which contains songs we wrote over the past eight years.

The organisation of this year's Eurovision Song Contest has not been easy
for your country. What is your conclusion on the organisation of this event?
[GreenJolly] We are confident that everything is okay. The government and
the broadcaster were very short in time, but due to co-operation from the
highest level, everything seems to be just fine now. We heard many positive
reactions on the stage and the events organised around the contest.

That brings us to the difficult period your country faced over the past
months. What do you expect the future to bring to Ukraine?
[GreenJolly] We do expect big changes, both in terms of economy as well as
the mentality, that has to change to make everyone feel free. We hope these
changes come quickly!The music Your song can be compared with hip-hop
and rap songs, which are not considered as typical Eurovision Song Contest
styles.

Don't you think that this might have negative effects on your result?
[GreenJolly] No, we don't think so. We saw people between 3 and 75 years
old singing Razom nas bahato.

Have you heard the songs of your competitors?
[GreenJolly] We heard them all (laughing). We like the girls about Bosnia &
Herzegovina and Spain (we asked about the songs, but never mind). We also
like the songs of Cyprus and Moldova. Every song can win theoretically, so
you never know!

We learned that Ruslana supports you guys! How is she helping you to make
this a success?
[GreenJolly] Ruslana didn't help us directly with the entry itself, but she
brought us in touch with CFC to take care of our public relations, which was
important to us. She also told us about the mistakes she made before and
after her victory. Ruslana is a great personality when it comes to the
promotion of Ukraine and GreenJolly.

Speaking about Ruslana, could you ever imagine to participate in the
Eurovision Song Contest?
[GreenJolly] Not at all! But we are very happy to be here and we feel very,
very proud to represent our country. It's great to get this opportunity. We
hope that after the contest, we can do some tracks with Eminem, Sting,
Madonna or Britney (guys are laughing)! Honestly, we are going on promotion
tour for our album after the contest.

If you had 30 seconds to address the European audience, what would you
say? [GreenJolly] Hello Europe! Greets from GreenJolly from Ukraine! With
our energetic song we would like to invite you to Ukraine. Our country is
free and hospitable, so we are with you! Our hearts are in Europe, our soul
is in Ukraine!

Thanks for this interview guys, good luck! -30-
------------------------------------------------------------------------------------------------------------
LINK: http://www.esctoday.com/specials/read/4557
===============================================================
17. TWO WASHINGTON GROUP CULTURAL FUND EVENTS
Sunday, May 22 and Thursday, May 26

Svitlana Shiells, Chair, The Washington Group Cultural Fund
The Washington Group, Washington, D.C., Wed, May 18, 2005

(1) SUNDAY, May 22 -----

Washington, D.C.: The Washington Group Cultural Fund in cooperation with
the Embassy of Ukraine presents the Cerberus Piano Trio (Mykola Suk- piano,
Byron Tauchi- violin, Andrew Smith-cello) playing works by Myroslav Skoryk,
Ildebrando Pizzetti and Anton Arensky. Meet the artists at the reception
following the performance. The concert will take place on Sunday, May 22,
2005, at 3 pm at the Lyceum: 201 S. Washington Street, Old Town Alexandria,
VA. Handicapped accessible. Suggested donation $20. Students free. For
more information please contact Svitlana Fedko Shiells at (703) 506-4745.

(2) THURSDAY, May 26 -----

Washington, D.C.: The Washington Group Cultural Fund in cooperation with
the Embassy of Ukraine invites you to an exhibit of woodcuts by JASQUES
HNIZDOVSKY (1915-1985), one of the foremost woodcut artists in America.
The event will take place on Thursday, May 26, 2005, at 7 pm at the Embassy
of Ukraine, 3350 M Street, N.W., Washington, D.C. During the exhibit and
reception, there will be an opportunity to purchase the woodcuts on display.
For more information please contact Svitlana Fedko Shiells at (703)
506-4745. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
18. LETTER TO THE EDITOR RE: "A 21ST CENTURY REVOLT"

LETTER TO THE EDITOR, Sent to the GUARDIAN, UK
From Daniel McMinn, Kyiv, Ukraine
Published in The Action Ukraine Report, #487, Article 18
Washington, D.C., Thu, May 19, 2005

RE: G2: INSIDE STORY: A 21ST CENTURY REVOLT:
THE WORLD SAW IT AS A SPONTANEOUS DRIVE FOR
DEMOCRACY, BUT UKRAINE'S 'ORANGE REVOLUTION'
WAS IN FACT AN OPERATION YEARS IN THE MAKING
By Daniel Wolf, The Guardian
London, United Kingdom, Friday, May 13, 2005
Published in The Action Ukraine Report, # 485, Article 12
Washington, D.C., Monday, May 16, 2005

I was disappointed to see the article "A 21st Century Revolt" appear
in the Guardian. Mr. Wolf was right to credit the Yushchenko team with
distributing video equipment to its (volunteer) election monitors, but
failed in almost every way to correctly describe the Orange
Revolution.

To begin with, the article also shares a critical flaw with a January
17 New York Times article. In that article the NYT claims the
Ukrainian Secret Service was a major force keeping the demonstrations
peaceful *based mostly on an interview with a Ukrainian Security Chief
who was about to be fired for his ties to the old regime*. In his
article, Mr. Wolf attributes the Orange Revolution (OR) to a strategic
plan carefully executed by the Yushchenko team based mostly on
testimony from a longtime member of that team, Roman Bessmertny.
(incorrectly referred to as Yushchenko's campaign manager; he was
fired from that position for doing a poor job and replaced by
Zinchenko) Has Mr. Wolf, as Mr. Chivers before him, never heard of
the term "self-serving bias"?

The "evidence of meticulous preparation" Mr. Wolf talks of would be
more convincing if it had been there from the beginning. The soup
kitchens and heated tents and much of the rest of the accompanying
amenities came later. I conducted a few dozen interviews with people
living in the tent camp throughout its two month existence. Without
fail, the people there said that the hardest part of the protest was
the first few days, when they were living in ordinary camping tents,
with little or no organization, and dealing with massive donations
from everywhere in the city. It was too cold to sleep, so most of them
didn't for a couple days. On the other hand, many of the protesters
said they hadn't ever eaten as well as they did then. Those cold,
sleepless, but well-fed first nights were what made the revolution,
and during them the Yushchenko team was not leading but playing
catch-up.

The "slickness of the concerts" is likewise ridiculous. They were not
prepared in advance for an OR that no one expected (including
Tymoshenko and Yushchenko by their own admission). Instead,
Yushchenko had based his campaign strategy on doing an old-f
fashioned city-by-city tour to bypass the overwhelming negative media
coverage.

At least one reputable news source strongly questioned the cost
effectiveness of this strategy at the time, but it had a pleasant side
effect. Considering Yushchenko had the youth vote locked, and a number
of big rock groups signed on with him early on his team organized concerts
as part of the tour. The stage and the equipment later became leftovers
from the campaign, happily available for the protests. In a sense they
were part of the Yushchenko team's spontaneous contribution, just like
all the other spontaneous contributors.

Not only did the Yushchenko team have little control over the
"professionalism of media coverage" during the OR, they were vilified
by almost all media sources until after the OR had won over the
people. Only one station reported on the OR from the start, and it
jumped from a relatively little known (11th place) specialty channel
to a major contender (5th place) channel for doing so. The channel
wouldn't even have been able to do that much if its journalists hadn't
fought for a full year against at least three different attempts to
shut them down and finally won after going on hunger strike. The rest
of the channels ignored the problem until their own journalists
revolted. (after the first week convinced them, too)

The people in the camp describe a sudden outpouring of good will in
the first week. To give you an example, at one point a member of Pora
(a key civil action group in the OR which was completely absent from
Mr. Wolf's article) related to me with tears in his eyes the story of
a little old grandma too poor to own a thermos, who carried a teapot
covered in aluminum foil from her home so the protesters would have
something warm to drink.

It was people like that grandmother who made the revolution, not
Roman Bessmertniy. -30-
-------------------------------------------------------------------------------------------------------------
Dan McMinn, Kyiv editor, danmcminn@gmail.com
Author of the weblog: http://orangeukraine.squarespace.com
===============================================================
19. UKRAINE'S 20,000 CRIMEAN TARTARS GATHER TO
COMMEMORATE DEPORTATION VICTIMS OF 61 YEARS AGO

Interfax-Ukraine news agency, Kiev, in Russian, 18 May 05
BBC Monitoring Service, UK, in English, Wed, May 18, 2005

SIMFEROPOL - An all-Crimean meeting commemorating the 61st
anniversary of the deportation from Crimea of Crimean Tatars, Bulgarians,
Greeks and Germans has begun in Simferopol's central Lenin Square. The
state flags of Ukraine and the [Crimean] autonomous republic have been
lowered to half-mast at all government bodies of the autonomous republic.
People are praying in all Crimean mosques for the innocent who died
during the deportation.

According to various estimates, up to 20,000 people have gathered in
Simferopol's Lenin Square. Many are holding placards with the slogans "We
demand that the Crimean Tatar people's rights be respected in land sharing",
"Supreme Council, pass a law on the Crimean Tatar people's status",
"Supreme Council, it's time to restore Crimea's historical place names",
"Official status to the Crimean Tatar language in Crimea". It is interesting
that many of the slogans are written in Ukrainian. On similar occasions in
the past, slogans were written in Crimean Tatar and Russian.

Participants in the meeting are brandishing Crimean Tatar flags, as well as
Ukraine's state flags with black ribbons attached. The chairman of the
Crimean Supreme Council [parliament], Borys Deych; the chairman of the
Crimean Council of Ministers, Anatoliy Matviyenko, and Ukrainian people's
deputies are present. [Passage omitted: other details] -30-
===============================================================
20. YUSHCHENKO INTRODUCES NATIONAL SHEVCHENKO DAY
TO BE CELEBRATED EVERY YEAR ON MARCH 9

Ukrainian News Agency, Kyiv, Ukraine, Tue, May 17, 2005

KYIV - President Viktor Yuschenko has introduced the National Shevchenko
Day to be celebrated every year on March 9. This was announced in the May
16 decree on some measures to prepare for the celebration of the 200th
anniversary of Taras Shevchenko's birth, whose text Ukrainian News has.

Apart from this, Yuschenko ordered to support the initiative of the Culture
and Tourism Ministry, scientific and creative public on holding all-Ukraine
cultural action "Truth will rise! Freedom will rise!"

In this connection Yuschenko instructed the Cabinet of Ministers to set up
within two weeks an organizational committee for holding this action, and
endorse its composition, as well as to endorse within two months a program
of preparations for the action.

Apart from this, the President ordered the government to guarantee putting
in order the memorial places connected with the life and work of the poet,
speed up together with the Kyiv city state administration the settlement of
the issue of building premises in the capital for the storage of manuscripts
by Shevehnko. Yuschenko also ordered the State Committee for Television
and Radio Broadcasting to secure a wide coverage of the nation-wide action.

The President signed this decree in order to immortalize the creative
heritage of Shevchenko and prepare for celebrating in 2014 the 200th
anniversary of the poet's birthday. Taras Shevchenko was born on March 9,
1814. He is a great Ukrainian poet and painter, known for his patriotism.
In 1847 Shevchenko was arrested and exiled until 1857, when Russian tsar
Nicolas I died. In exile Shevchenko was not allowed to write and draw.
Shevchenko died in Petersburg on March 10, 1861, and two months later
his body, according to the poet's will, was taken to Ukraine and buried on
Chernecha hill (now Tarasova Hora) near Kaniv (Cherkasy region).
===============================================================
21. YUSHCHENKO ORDERS GOVERNMENT TO CELEBRATE
JUBILEES OF LEADERS OF UKRAINIAN AND WESTERN UKRAINIAN
PEOPLE'S REPUBLICS IN 2005-2009

Ukrainian News Agency, Kyiv, Ukraine, May 17, 2005

KYIV - President Viktor Yuschenko has commissioned the Cabinet of Ministers
to prepare and hold events on celebration of jubilees of leaders of the
Ukrainian People's Republic (UNR) and Western Ukrainian People's Republic
(ZUNR). This follows from the presidential order of May 16, a copy of which
is available to Ukrainian News.

Yuschenko made such commission in order to reform objective evaluation
of their historical role and consolidation of Ukrainians. Within a month the
government together with the National Academy of Sciences should draw
up a calendar of events on celebration of jubilees of prominent figures of
the UNR and ZUNR for 2005-2009.

The calendar should include festive events, science conferences and round
tables, scientific readings and other events devoted to birthdays of
Tsentralna Rada head Mykhailo Hrushevskyi, head of western region of the
UNR Yevhen Petrushevych, head of the UNR Directorate Volodymyr
Vinnychenko, chief ataman of the UNR forces Symon Petliura, and heads
of the UNR government Vsevolod Holubovych, Volodymyr Chekhivskyi,
Serhii Ostapenko, Mykola Martos, Isaak Mazepa, Viacheslav Prokopovych,
Andrii Lyvytskyi, heads of the ZUNR government Kost Levytskyi and Sydir
Holubovych.

The plan of events also should include publishing of scientific papers,
collections of documents and materials of national liberation movements
of the beginning of 20th century, biographies of ZUNR and UNR leaders,
publication of their works.

In addition, the government calendar of events should include permanent
expositions and exhibitions of archive documents, objects and photo
materials, which illustrate this period of the Ukrainian history.

The presidential directive reads that the plan of events should envisage
holding of subject actions aimed at patriotic education and popularization
of activities of ZUNR and UNR leaders. Such events should be held in
educational institutions and military units.

The Cabinet of Ministers should envisage the issue of jubilee coins for the
anniversary of their births. The government was also commissioned to
decide how to finance all these events.

Together with the Crimean Council of Ministers, state administrations of
Kyiv, Sevastopol and the regions the Cabinet of Ministers should study a
possibility of naming educational institutions, military units after leaders
of the UNR, ZUNR, renaming the streets, parks after them and so on.

They also have to settle in keeping with set procedure the issues of
erection of monuments to Vinnychenko, Petliura, other leaders of Ukrainian
republics in Kyiv, other cities, installation of memorial tablets in places
connected with them.

The Foreign Ministry should ensure holding of celebration events by
diplomatic representative offices with participation of the Ukrainian
diaspora. In his directive Yuschenko also commissioned the State TV
and Radio Broadcasting Committee to organize cycles of programs
about prominent figures of the UNR, ZUNR and provide events coverage
the mass media.

UNR existed in 1917-1918, Directorate from November 1918 through May
1920, ZUNR in 1917 and in January 1918 it united with UNR as its western
part. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
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7. UKRAINIAN AMERICAN COORDINATING COUNCIL,
(UACC), Ihor Gawdiak, President, Washington, D.C., New York, NY
8. U.S.-UKRAINE FOUNDATION (USUF), Nadia Komarnyckyj
McConnell, President; John Kun, Vice President/COO, Washington,
D.C.; Markian Bilynskyj, VP/Director of Field Operations; Kyiv,
Ukraine. Web: http://www.USUkraine.org
9. UKRAINE-U.S. BUSINESS COUNCIL, Van Yeutter, Cargill Inc.,
Interim President; Jack Reed, ADM, Interim Vice President;
Morgan Williams, SigmaBleyzer, Interim Secretary-Treasurer,
Washington, D.C.
10. VOLIA SOFTWARE, Software to Fit Your Business, Source your
IT work in Ukraine. Contact: Yuriy Sivitsky, Vice President, Marketing,
Kyiv, Ukraine, yuriy.sivitsky@softline.kiev.ua; Volia Software website:
http://www.volia-software.com/ or Bill Hunter, CEO Volia Software,
Houston, TX 77024; bill.hunter@volia-software.com.
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PUBLISHER AND EDITOR
Mr. E. Morgan Williams, Director, Government Affairs
Washington Office, SigmaBleyzer Private Equity Investment Group
P.O. Box 2607, Washington, D.C. 20013, Tel: 202 437 4707
mwilliams@SigmaBleyzer.com; www.SigmaBleyzer.com
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Director, Ukrainian Federation of America (UFA)
Coordinator, Action Ukraine Coalition (AUC)
Senior Advisor, U.S.-Ukraine Foundation (USUF)
Interim Secretary-Treasurer, Ukraine-U.S. Business Council
Publisher, Ukraine Information Website, www.ArtUkraine.com
& www.ArtUkraine Information Service (ARTUIS)
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