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Action Ukraine Report

"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"

WTO COUNTDOWN: TIME FOR YUSHCHENKO TO STEP UP
Parliament blocks Ukraine's WTO Accession
[articles one through eleven]

THE FAIREST PREMIER OF THEM ALL?
Yulia Tymoshenko helped Ukraine's president topple a sinister
regime. Now the two are heading for a political rift. So what
does the future hold for the heroine of the orange revolution?
[article eighteen]

"THE ACTION UKRAINE REPORT - AUR" - Number 511
Mr. E. Morgan Williams, Publisher and Editor
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C. and Kyiv, Ukraine, WEDNESDAY, June 29, 2005

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

1. "TIME FOR YUSHCHENKO TO STEP UP"
By Tammy Lynch, Institute for the Study of Conflict, Ideology and Policy
Behind the Breaking News, A Policy Briefing from the
Institute for the Study of Conflict, Ideology and Policy
Boston University, Boston, Massachusetts
Published by The Action Ukraine Report (AUR)
Washington, D,C., Wednesday, June 29, 2005

2. DPM TOMENKO HOPES THAT UKRAINIAN PARLIAMENT WILL ADOPT
QUICKLY THE LAWS NECESSARY TO ENTER WTO
UNIAN, Kyiv, Ukraine, Saturday, June 25, 2005

3. DMP KINAKH STRESSES NECESSITY OF SPEEDING UP PROCESS
OF UKRAINE MEETING REQUIREMENTS FOR ENTERING WTO
Necessary to take maximum forces to adopt all necessary draft laws
UNIAN, Kyiv, Ukraine, Saturday, June 25, 2005

4. TERIOKHIN: UKRAINIAN RADA WILL ADOPT MOST BILLS NEEDED
FOR WTO MEMBERSHIP BEFORE SUMMER RECESS
Interfax-Ukraine, Kyiv, Ukraine, Friday, June 24, 2005

5. UKRAINIAN SECURITY CHIEF POROSHENKO OPPOSES
SYNCHRONIZED WTO ACCESSION WITH RUSSIA
Interfax-Ukraine news agency, Kiev, in Russian 0530 gmt 25 Jun 05
BBC Monitoring Service, UK, in English, Sat, Jun 25, 2005

6. RADA TO ADAPT LAW ON CAR INDUSTRY DEVELOPMENT
TO WTO NORMS
Ukrainian News Agency, Kyiv, Ukraine, Friday, June 24, 2005

7. PARLIAMENT AGAIN REFUSES TO AMEND UKRAINE'S LEGISLATION
ON LASAR DISCS TO MEET WTO REQUIREMENTS
Draft bill received only 215 votes while at least 226 are required
Ukrainian News Agency, Kyiv, Ukraine, Thu, June 23, 2005

8. RADA TO PERMIT FOREIGN INSURERS TO OPEN SUBSIDIARIES IN
UKRAINE 10 YEARS AFTER WTO ENTRY
Bill will facilitate Ukraine's accessin to WTO in 2005
Ukrainian News Agency, Kyiv, Ukraine, Thu, June 23, 2005

9. RADA DECLINES TO REMOVE QUOTAS B, C FROM INTERNAL
REGULATION OF SUGAR MARKET DUE TO NON-COMPLIANCE WITH
WTO STANDARDS
Ukrainian News Agency, Kyiv, Ukraine, Thu, June 23, 2005

10. RADA REFUSES TO HARMONIZE SANITARY, VETERINARY AND
PHYTOSANITY REGULATION OF FOOD MARKET WITH WTO STANDARDS
By Khrystyna Protsiv, Ukrainian News Agency, Kyiv, Ukraine, June 22, 2005

11. RADA DECLINES TO BRING UKRAINE'S LEGISLATION FOR PLANT
QUARANTINE, VETERINARY MEDICINE AND FOOD SAFETY IN LINE
WITH WTO REQUIREMENTS
By Zoya Zhminko, Ukrainian News Agency, Kyiv, Ukraine, June 22, 2005

12. RUSSIAN DUO EYE UKRAINE PLANT
Russian oligarchs buying up prize Ukrainian assests from local oligarchs
By Tom Warner in Kiev, Financial Times
London, UK, Wednesday, June 29 2005

13. EU VICE-PRESIDENT URGES UKRAINE TO FIGHT CORRUPTION
Need for separating business and government posts
TV 5 Kanal, Kiev, in Ukrainian 1800 gmt 28 Jun 05
BBC Monitoring Service,UK, in English, Tue, Jun 28, 2005

14. EUROPEAN UNION TO ALLOCATE 20M EUROS TO HELP UKRAINE
WITH ADMINISTRATIVE REFORM AND TO FIGHT CORRUPTION
Interfax-Ukraine news agency, Kiev, in Russian 0828 gmt 28 Jun 05
BBC Monitoring Service, UK, in English, Tue, Jan 28, 2005

15. RUSSIAN MP SAYS BUSINESS WORLD CONCERNED ABOUT THE
"LACK OF CLARITY" IN UKRAINE'S BUSINESS AND POLITICAL CLIMATE
RIA news agency, Moscow, in Russian 0908 gmt 28 Jun 05
BBC Monitoring Service,UK, in English, Tuesday, Jun 28, 2005

16. UKRAINE'S UPHILL EUROPEAN UNION STRUGGLE
By Brussels journalist David Ferguson
Euro-Reporters.com, Brussels centered journalist network
Brussels, Belgium, Tuesday, 28 June 2005

17. UKRAINE PRESIDENT VIKTOR YUSHCHENKO TO RECEIVE
2005 PHILADELPHIA LIBERTY MEDAL AND $100,000
PR Newswire, Philadelphia, PA, Tuesday, June 28, 2005

18. THE FAIREST PREMIER OF THEM ALL?
Yulia Tymoshenko helped Ukraine's president topple a sinister
regime. Now the two are heading for a political rift. So what
does the future hold for the heroine of the orange revolution?
By Askold Krushelnycky, Sunday Times Magazine
London, United Kingdom, Sunday, June 26, 2005

19. UKRAINAIN PRIME MINISTER TYMOSHCHENKO DETERMINED
TO "BRING ORDER" FOR STABILITY
EXCLUSIVE INTERVIEW: Ukrainian PM Yulia Tymoschenko
Interfax-Russia, Moscow, Russia, Tuesday, Jun 28 2005

20. CRUDE RAPESEED OIL EXPORTERS INTO THE EUROPEAN UNION
Theodor C. F. Cranendonk, MidOil B. V.
Rotterdam, The Netherlands, Monday, June 27, 2005

21. THE DAY' IS PREPARING BOOK ABOUT JAMES MACE
Collection of articles by the late Professor Mace
Wanting persons who knew James Mace to share their memoirs
LETTER TO THE EDITOR: From: Maria Zamyatina, time@day.kiev.ua
To: Morgan Williams, Editor, The Action Ukraine Report (AUR)
Kyiv, Ukraine, Friday, June 24, 2005

22. UKRAINIAN-ITALIAN PORTAL WEBSITE
"Tony" kiev@email.it, Italy, Friday, June 24, 2005

23. UKRAINIAN FOLK ENSEMBLE "BOZHYCNI"
Folk Ensemble Bozhychi, vamdf@yahoo.com
Kyiv, Ukraine, Monday, June 28, 2005

24. 19TH ANNUAL UKRAINIAN SUNFLOWER FESTIVAL
Warren, Michigan, August 12-14, 2004
Andrew J Zeleney, ajzeleney@comcast.com
Warren, Michigan, Wednesday, June 22, 2005

25. UKRAINE: LIFE2ORPHANS
Improving The Lives of Orphans Lives
From: Patie Wilcox, patiehome@yahoo.com
Volunteer Orphanage Coordinator, Life2Orphans
To: FriendsOfUkraine@yahoogroups.com
Tuesday, June 07, 2005 3:04 PM
===============================================================
1. "TIME FOR YUSHCHENKO TO STEP UP"

By Tammy Lynch, Institute for the Study of Conflict, Ideology and Policy
Behind the Breaking News, A Policy Briefing from the
Institute for the Study of Conflict, Ideology and Policy
Boston University, Boston, Massachusetts
Published by The Action Ukraine Report (AUR)
Washington, D,C., Wednesday, June 29, 2005

Last week, Ukraine's parliament (Verkhovna Rada) rejected a number of
measures that would have brought the country's trade regulations in line
with international norms and that would have moved the country closer to
meeting the requirements for World Trade Organization (WTO) entry.

The bills included two "make or break" issues: the United States is
demanding that Ukraine tighten copyright and piracy laws before it will
consent to its WTO entry, and Australia has stated that without the
adjustment of domestic Sugar quotas, it will not support Ukraine's
request to enter the trade organization.

Parliament refused to undertake either of these reforms. (1) Although
negotiations with the government over re-votes continue, the rejections
make it extremely difficult for Ukraine to complete its preparations for
WTO entry this year.

This parliamentary action invites questions not only about Ukraine's
future economic policy, but also about the ability of Ukrainian President
Viktor Yushchenko to fulfill his promises to investors, foreign governments
and international organizations. These votes disturbingly call into question
Yushchenko's ability to influence members of his own political party, as
well as members of allied parties. On more than one occasion, had all
members of Yushchenko's own party voted in support of a WTO-related
bill, it would have passed. But they did not.

A May 31 vote to tighten copyright and piracy laws - a vote necessary to
win US support for Ukraine's WTO bid, and a bill strongly supported by
Yushchenko - came up 17 votes short of the needed 226 majority.

During this vote, 27 of Yushchenko's party members did not vote, were not
present, or were opposed to the measure. Following the vote, MPs
complained that they had not been informed of the vote nor received any
instructions.

Recent WTO-related votes displayed a similar pattern. In a particularly
egregious example, the 23 June re-vote of the piracy bill fell just 11 votes
short of passage, while exactly 11 members of Our Ukraine did not vote
in favor.

Of the 89 members of Our Ukraine, 21 chose not to support a vote on
standardization of technical trade regulations. That vote failed by 23
votes.

Two members of the Yulia Tymoshenko Bloc, who were working outside of
the building, reportedly were prepared, in case the vote would be close, to
return for voting should it be necessary. Based on the 21 Our Ukraine
defections, it was not. Every other Tymoshenko Bloc member (35 out of 37)
however, voted in favor.

In addition, members of two parties identified by Yushchenko as allies
generally have not supported the initiatives. Parliamentary Speaker
Volodymyr Lytvyn's People's Party, which Yushchenko invited to join his
electoral bloc for the upcoming parliamentary election, has been fractured
on the WTO votes. Only 4 out of 40 deputies in the party supported the
initiative to alter Sugar quotas, while only between half and three-quarters
of its members have supported other measures.

More questionable has been the response of the Party of Industrialists
and Entrepreneurs, headed by First Deputy Prime Minister Anatoly
Kinakh. Kinakh is both a Yushchenko ally and a Tymoshenko foe, who at
times has criticized the prime minister aggressively. Still, he was
tasked by Yushchenko and Tymoshenko to work as an intermediary
between the government and the parliament, and to represent the
government in its relations with business organizations.

On Saturday, Kinakh said, "If such countries as Russia and Kazakhstan
pass ahead of us, we will face difficulties with entering the WTO, as
these countries will view us as a powerful rival. That is why we should
speed up this process." (2)

However, just two days earlier, only four out of 15 of Kinakh's party
supported the vote on anti-piracy legislation. Even more, on the same
day, not one member of Kinakh's party voted in favor of standardizing
technical trade regulations with WTO norms. The votes suggest either
that Kinakh is unable even marginally to influence his own party, or that
he is working against the government to which he was appointed by
Yushchenko.

Yushchenko has stated for months that without passage of 26 WTO-related
bills, Ukraine will miss the late-July deadline for WTO entry in 2005, and
will not move forward on its obligations under the EU-Ukraine Action Plan.

These initiatives, he said, are in the "basic strategic interests of
Ukraine," where "we see our future in integration with Europe." (3)
Yushchenko also repeatedly has promised international investors that
WTO-related reforms will be enacted in order to improve the country's
difficult investment climate.

Nevertheless, the president has been unable to translate rhetoric into
reality, and surprisingly has had little tangible impact on the
process. One of the primary reasons for this may be the president's
decision to remain detached from the day-to-day governing of the
country.

In particular, Yushchenko has shown a perplexing aversion to becoming
involved in the parliamentary process, leaving this duty almost solely to
his parliamentary allies and his Prime Minister, Yulia Tymoshenko.

"While the President has spent much of his time abroad appeasing
investors with liberal free-market talk," Roman Olearchyk wrote, "the dirty
work has been left to Tymoshenko." (4) This tactic is surprising, since the
Ukrainian president is customarily the leader to whom MPs and others
look for guidance and input.

The largely negative response to WTO-related measures from
Parliamentary Speaker Lytvyn's People's Party can be explained partly
by Lytvyn's obvious irritation at what he views as Yushchenko's lack of
attention. "Practically no letters sent from parliament to the presidential
administration are getting through to President Yushchenko," he said.

"At best, they are answered by a deputy [state secretary]. I have come to
a conclusion that he does not answer them. At least in [former President]
Leonid Kuchma's administration, they put his signature for him. Now, they
can't even be bothered to put a signature." (5)

The president's decision to leave the legislative fulfillment of one of
his cornerstone campaign initiatives to Tymoshenko is also surprising,
given the antipathy toward her from some of Our Ukraine's most senior
members in parliament and the power checks the president has placed
upon her.

It is no secret that many Our Ukraine members opposed Tymoshenko's
appointment as prime minister, which she earned by virtue of her
co-leadership during the Orange Revolution. They also grouse privately
at Tymoshenko's refusal to merge her own expanding political party,
Motherland, with Our Ukraine (to be called People's Union Our Ukraine
during the upcoming parliamentary elections). Her ability to retain her
position after next March's parliamentary elections is unknown.

Even more, although Yushchenko essentially has left the WTO legislative
work to Tymoshenko, the president's relationship with Our Ukraine party
founder and rumored revolution financier Petro Poroshenko serves to
undermine her influence in the parliament.

Poroshenko was the man reportedly chosen by Our Ukraine to be prime
minister. Instead, Yushchenko named Poroshenko as the secretary of the
National Security and Defense Council, which the president then imbued
with significant additional responsibilities - many duplicating the prime
minister's. Yushchenko gave Poroshenko the right to vote at cabinet
meetings and also appointed his own presidential representative to the
cabinet. He gave Poroshenko a hand in everything from privatization
policy to budget formulation.

At the same time, Yushchenko turned a blind eye to Poroshenko's
maintenance of his parliamentary mandate, which violates the constitution
of the country. By remaining in parliament and voting regularly, Poroshenko
remains de facto one of the primary leaders of Our Ukraine.

Poroshenko's position implies that although Yushchenko felt duty-bound to
name his revolution partner to be prime minister, Tymoshenko does not have
his total support. This fact, in addition to animosity from some members of
Our Ukraine, and the prime minister's precarious employment status in the
next year, undermine Tymoshenko's ability to influence certain MPs
(particularly those within Our Ukraine).

Yushchenko's assistance, therefore, is necessary on difficult legislation.
But for some reason, the president has been either disinclined or unable to
provide active assistance on WTO-related bills.

In a recent interview, James Sherr, a Fellow of the Conflict Studies
Research Centre at the United Kingdom Defence Academy, said, "Some
speculate that he [Yushchenko] is deliberately staying aloof so that she
[Tymoshenko] can fail - so that she, rather than he, will be blamed. I hope
these speculations are wrong . . .." (6) Regardless, while Yulia Tymoshenko
is one of the most energetic and capable prime ministers the country has
seen, there are certainly enough problems facing the country to provide work
for both the head of state and the head of government.

The negative economic effect of the rejection of these WTO-related bills
could be large; the majority of Ukraine's traditional trading partners are
now within not only the WTO, but also the European Union free trade zone.
In contrast, rejection would mean that Ukraine would continue to be subject
to export quotas and anti-dumping investigations.

Ukrainian Economics Minister Serhiy Teryokhin recently estimated the
benefit of WTO entry to Ukraine's economy at $1.5 billion per year. (7)
As the Ukrainian economy cools under the weight of high energy and low
steel prices, that money will become even more necessary.

To be sure, Viktor Yushchenko is an impressive, inspirational man. He is a
man who has provided his country with a vision of a better future and the
possibility to reach it. His government has responded, albeit in fits and
starts, with good progress in a number of difficult areas.

These include tackling the illicit smuggling trade, tax evasion, government
corruption, and the shadow economy. The challenges are huge - and much
larger than originally thought. In order to continue moving forward,
President Yushchenko must understand that it is time to do the work
necessary to make his vision a reality.

(1) WTO-related bills include:
-- Bill Number 7032, "On Introducing Amendments in Certain Laws
(including the Criminal Code, the law "On the Particulars of State
Regulation of Subjects of Economic Activities' Operations Connected
with Production, Export, Import of Discs for Laser Reading Systems,"
and the law "On Licensing certain Types of Economic Activity)," read 31
May 2005 and 23 June 2005, did not pass.
-- Bill Number 7568 (erroneously referred to as Bill 7569 by Ukrainian
News Agency), "On Introducing Amendments in the Law of Ukraine on State
Regulation of Production and Sale of Sugar," read on 23 June 2005, did
not pass.
-- Bill Number 7569, "On Amendments and Addenda to the Law of Ukraine
on Automobile Industry Development," read on 24 June 2005, passed with
258 votes.
-- Bills Number 7586, "On Development and Application of Standards,
Technical Regulations and Procedures for Assessing Compatibility," and
Number 7595, "On Introducing Amendments in Certain Ukrainian Laws (On
State Regulation of Agricultural Products, On Ensuring Sanitary and
Epidemiological Well-Being of the Population, On Foreign Economic
Trade, On Pesticides and Agricultural Chemicals, On Protecting the
Population from Infectious Diseases, On Protection of Plants, On
Licensing Certain Types of Business Activities)," read on 22 June 2005,
did not pass. For specific vote information on these and other Verkhovna
Rada bills, see www.rada.gov.ua.
(2) UNIAN News Agency, 25 Jun 05.
(3) Ukrayinska Pravda, 23 May 05, and Agence France Presse, 5:26
PM GMT, 7 Jun 05.
(4) Businessweek International, 20 Jun 05, p. 30.
(5) One Plus One TV, 4 Jun 05; BBC Monitoring via Lexis-Nexis.
(6) Den (The Day) Weekly Digest #20 in English, 14 Jun 05. See
www.day.kiev.ua/138816 for the entire interview, in which Sherr has
sobering criticism for both Yushchenko and Tymoshenko.
(7) UNIAN News Agency, 22 Jun 05 via The Action Ukraine Report
(contact ArtUkraine.com@starpower.net or morganw@patriot.net for
subscription information). -30-
--------------------------------------------------------------------------------------------------------
The author is a Senior Research Fellow at the Institute for the Study of
Conflict, Ideology & Policy in Boston, Massachusetts. She worked in Kyiv
with the European Network of Election Monitoring Organizations throughout
the presidential election cycle and previously served in Moscow as the
Interim Director of the National Democratic Institute's (NDI) Russia
program. Contact: tammymlynch@yahoo.com
--------------------------------------------------------------------------------------------------------
Study of Conflict, Ideology & Policy at Boston University, 141 Bay State
Road, Boston, MA 02215. E-mail buiscip@bu.edu, fax (617) 353-7185,
phone (617) 353-5815, Website: http://www.bu.edu/iscip/.
===============================================================
2. DPM TOMENKO HOPES THAT UKRAINIAN PARLIAMENT WILL ADOPT
QUICKLY THE LAWS NECESSARY TO ENTER WTO

UNIAN, Kyiv, Ukraine, Saturday, June 25, 2005

KYIV - Deputy Prime Minister for humanitarian and social issues of Ukraine
Mykola Tomenko hopes that during the last plenary week the Verkhovna
Rada of Ukraine will adopt the package of laws, necessary to enter WTO.
According to an UNIAN correspondent, the DPM has claimed this to a
press conference in Kyiv today.

"I'm convinced that there is a high probability that this package of laws
will be adopted during the last plenary week", said M.Tomenko.
He has stressed that Prime Minister of Ukraine Yulia Tymoshenko and
members of the parliamentary factions are actively negotiating at present.

In addition, he does not rule out that the next week President of Ukraine
Victor Yushchenko will meet with the government and parliament members.
===============================================================
3. DMP KINAKH STRESSES NECESSITY OF SPEEDING UP PROCESS
OF UKRAINE MEETING REQUIREMENTS FOR ENTERING WTO
Necessary to take maximum forces to adopt all necessary draft laws

UNIAN, Kyiv, Ukraine, Saturday, June 25, 2005

KYIV - Top Deputy Prime Minister of Ukraine Anatoliy Kinakh has stressed
the necessity of speeding up the process of Ukraine's entrance to the World
Trade Organization (WTO). According to an UNIAN correspondent, he has
claimed this to a news conference in Kyiv today.

"If such countries as Russia and Kazakhstan pass ahead of us, we will face
difficulties with entering to WTO, as these countries will view us as a
powerful rival. That is why we should speed up this process", said he.

A.Kinakh has noted that it is necessary to take maximum forces to adopt all
the necessary draft laws, prepared by the government, and registered in the
parliament.

He has also expressed a hope that the next plenary week the government
will propose VR to return to considering the draft law on defending
intellectual property rights, and will propose to consider and adopt all the
necessary draft laws, including that concerning the reduction of the export
duty by 1% on oilseeds - from 17% to 16%. -30-
===============================================================
4. TERIOKHIN: UKRAINIAN RADA WILL ADOPT MOST BILLS NEEDED
FOR WTO MEMBERSHIP BEFORE SUMMER RECESS

Interfax-Ukraine, Kyiv, Ukraine, Friday, June 24, 2005

KYIV - Before its summer recess in early July, the Verkhovna Rada will
manage to adopt most bills needed for Ukraine to join the World Trade
Organization, Economy Minister Serhiy Teriokhin says. "I am confident
that in a week we'll adopt the most of what we need to join WTO.

We've got several questions left, which deal with the tariff policy;
there're complicated questions on phytosanitary, veterinary and hygienic
rules - we've got a lot of corruption there. And the third question concerns
export duties," Serhiy Teriokhin told journalists on Friday.

Asked if Ukraine will manage to become a WTO member before the year's
end, the minister said there is still a chance for that. "Yesterday morning
I
was wildly pessimistic. However, we held the second meeting with
parliamentary groups, factions and the premier, and we reached
agreements practically on everything.

Now effective talks are being held, and we're searching for compromises,
and I believe that by the next week's Thursday, we'll have the full set of
finalized questions concerning WTO," Serhiy Teriokhin said. The current
parliament's session will end on July 8, following which MPs will have their
recess until September. -30-
===============================================================
4. UKRAINIAN SECURITY CHIEF POROSHENKO OPPOSES
SYNCHRONIZED WTO ACCESSION WITH RUSSIA

Interfax-Ukraine news agency, Kiev, in Russian 0530 gmt 25 Jun 05
BBC Monitoring Service, UK, in English, Sat, Jun 25, 2005

KIEV - National Security and Defence Council Secretary Petro Poroshenko
is convinced that it is inexpedient and practically impossible to
synchronize the actions of Ukraine and Russia aimed to join the World Trade
Organization.

"I think that Russia has not yet completed the path Ukraine has
accomplished. We have gone quite a big part of the way towards the WTO.
Why should we depend on someone now? We are two independent states.
And we have completely different schedules of WTO accession judging by
the bilateral protocols already signed," Poroshenko said in an exclusive
interview to Interfax-Ukraine.

The peculiarity of the Ukrainian economy is that the fuel price
significantly differs from the world price, and "metallurgy and agriculture
have a more important role" in the Ukrainian economy, Poroshenko said.
"It would be very difficult to synchronize even if it were necessary," he
said.

It will be hard for Russia, despite its huge economic potential, to develop
its economy without accession to the WTO, Poroshenko said. "As soon as
the Russian fuel prices reach the level of the world prices and its economy
is competitive with that level of prices then - I think - we will absolutely
synchronize (our actions - Interfax-Ukraine) and continue developing our
bilateral relations," Poroshenko said. -30-
===============================================================
5. RADA TO ADAPT LAW ON CAR INDUSTRY DEVELOPMENT
TO WTO NORMS

Ukrainian News Agency, Kyiv, Ukraine, Friday, June 24, 2005

KYIV - The Verkhovna Rada is going to amend the legislation on develop-
ment of automobile industry in order to bring it in accordance with the
norms of the World Trade Organization (WTO) and agreements on
partnership and cooperation between Ukraine and the European Union.

The first reading of bill No. 7569 on amendments and addenda to the law of
Ukraine of automobile industry development was passed with 258 votes of
MPs, with 226 votes required for adoption.

According to the bill, the Verkhovna Rada is to withdraw from the definition
of automobile, motorbike, and spare parts making enterprise the requirements
for obligatory making of products, "whose country of origin is Ukraine."
Moreover, the bill offers to exclude from the law of automobile industry
development the mechanism of defining a country of origin.

According to the effective law, a country of origin of car, motorbike or
spare parts is Ukraine, if the share of cost of foreign or unknown origin
spare parts in the price of ready-made product (without cost for delivery)
is less than 50%. For automobiles, car body, painting and car assembly
are also required to be of Ukrainian origin.

As Ukrainian News reported earlier, in March 2004, the Verkhovna Rada
passed the bill on development of the Ukrainian automobile industry.
The bill provides for exempting enterprises manufacturing automobiles,
motorcycles, and components for them from paying value-added tax until
2009 if they reinvest their profits in development of their production. The
bill also exempts Ukrainian automobile manufacturing enterprises from
payment of import duty on goods and components intended for use in
production of automobiles until 2009.

On March 25, 2005, the Verkhovna Rada made amendments to the national
budget for 2005, suggested by the Cabinet of Ministers, which particularly
envisage cancellation of tax benefits, earlier granted for separate areas
and enterprises, including for automobile industry.

On May 26, the Cabinet of Ministers approved a package of 22 bills
necessary for Ukraine's accession to the WTO. -30-
===============================================================
6. RADA PASSES AT FIRST READING AMENDMENTS TO AUDIT
LAW REQUIRED FOR UKRAINE TO JOIN WTO

Interfax-Ukraine, Kyiv, Ukraine, Friday, June 17, 2005

KYIV - Ukraine's parliament has passed at first reading a bill on amendments
to the law on auditing activity, which is required for Ukraine's accession
to the World Trade Organization. The bill, referred by the government, was
supported in first reading by 287 of the 413 MPs registered in the session
hall.

According to it, auditors may be a legal entity certified as qualified for
auditing on the territory of Ukraine. The audit chamber is to be authorized
to ensure independence of auditors during inspections.It also envisages the
audit of auditors of the independence requirement cannot be satisfied due to
any condition.

The bill also offers to ban founders, owners and officials of audit
companies from interference in the audit in any way. The parliament has sent
for repeated first reading a bill on amendments to the law on state
regulation of production and sale of sugar and a bill on amendments to the
law on export duty on live cattle and leather. -30-
===============================================================
7. PARLIAMENT AGAIN REFUSES TO AMEND UKRAINE'S LEGISLATION
ON LASAR DISCS TO MEET WTO REQUIREMENTS
Draft bill received only 215 votes while at least 226 are required

Ukrainian News Agency, Kyiv, Ukraine, Thu, June 23, 2005

KYIV - The parliament has again refused to amend Ukrainian legislation on
laser discs to meet the requirements of the World Trade Organization (WTO).
The relevant draft law, which is entitled "On Introducing Amendments in
Certain Laws," received only 215 votes while at least 226 votes were
required for its approval. The parliament considered this draft law on May
31, when it received only 209 votes.

The draft law provides for amending the Criminal Code, the law "On the
Particulars of State Regulation of Subjects of Economic Activities'
Operations Connected with Production, Export, Import of Discs for Laser
Reading Systems," and the law "On Licensing certain Types of Economic
Activity."

According to Parliamentary Deputy Serhii Osyka of the Yedyna Ukraina
faction, who authored the draft law, adoption of the draft law would
facilitate resolution of the problematic issues that have arisen during the
process of negotiation on admission of Ukraine into the WTO, introduction of
the provisions of the multilateral WTO agreement on trade-related aspects of
intellectual property rights in Ukrainian legislation, elimination of the
contradictions between the law "On Foreign Economic Activity" and the law
"On the Particulars of State Regulation of Subjects of Economic Activities'
Operations Connected with Production, Export, Import of Discs for Laser
Reading Systems," the lifting of the United States' import restrictions, and
granting the status of a market economy to Ukraine.

As Ukrainian News earlier reported, parliamentary deputies Volodymyr
Kafarskyi, Ivan Kuras, Kostiantyn Sytnyk, and Oleksandr Ustenko proposed
in March that the parliament toughen the responsibility for production,
distribution, export and import of pirate disks for laser reading systems.

In May of last year, the parliament rejected a proposal to introduce
criminal responsibility for violations of the regulations covering export
and import of laser discs, equipment for producing and reading them.

The parliament regulated production, export, and import of laser discs as
well as import and export of equipment and raw materials for their
production in January 2002. The United States continues to demand that
Ukraine step up its efforts against piracy of optical media. -30-
===============================================================
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===============================================================
8. RADA TO PERMIT FOREIGN INSURERS TO OPEN SUBSIDIARIES IN
UKRAINE 10 YEARS AFTER WTO ENTRY
Bill will facilitate Ukraine's accessin to WTO in 2005

Ukrainian News Agency, Kyiv, Ukraine, Thu, June 23, 2005

KYIV - The Verkhovna Rada is going to permit foreign insurers to open
subsidiaries in Ukraine 10 years after Ukraine joins the World trade
Organization. The first reading of the bill "On Amending the Law on
Insurance," No.7564-1, was favored by 307 deputies, in view of the 226
required.

A commentary to the bill says that adoption of the bill will facilitate
Ukraine's accession to WTO in 2005, increase the quality of insurance
services and competition on the market, liberalize entry of foreign insurers
onto the Ukrainian market, and outline the rules of work for their
subsidiaries.

Specifically, an insurance company can open a subsidiary in Ukraine if its
capital is not less that ERU 150 million and it works on the market for at
least 15 years; Ukraine can open its subsidiaries in the country of foreign
insurance company; the country where the foreign insurance company is
based takes part in international cooperation aimed at prevention of
legalization (laundering) of incomes received from criminal sources, and
cooperates with the Financial Action Task Force on Money Laundering
(FATF).

The law is supposed to come into force 10 years after Ukraine's entry to
WTO. Under the current law, only resident insurers can provide insurance
services in Ukraine. There were 387 insurance companies registered in
Ukraine as of January 1, 2005, including a number of companies with foreign
investments.

As Ukrainian News earlier reported, the National Security and Defense
Council recommends that President Viktor Yuschenko give instructions to step
up the talks on Ukraine's entry to WTO in order to obtain membership this
year. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
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===============================================================
9. RADA DECLINES TO REMOVE QUOTAS B, C FROM INTERNAL
REGULATION OF SUGAR MARKET DUE TO NON-COMPLIANCE WITH
WTO STANDARDS

Ukrainian News Agency, Kyiv, Ukraine, Thu, June 23, 2005

KYIV - The Verkhovna Rada has declined to remove the quotas B and C from
the mechanism for regulating the domestic sugar market because of their
failure to meet the requirements of the World Trade Organization. Bill No.
7569 entitled "On Introducing Amendments in the Law of Ukraine on State
Regulation of Production and Sale of Sugar" was favored by only 198
lawmakers, given the 226 required for passage. After that, 233 deputies
voted for sending the bill for a repeated second reading.

The removal of the quotas was connected with observations of the Working
Group in charge of Ukraine's application for WTO entry, which said that the
existing system of domestic quotas (the existence of the quotas B and C)
violates the basic principles of WTO because they seem like restrictions on
foreign economic activities.

Moreover, an explanatory note to the bill stated that the quotas B and C are
inapplicable because they were never used (never established).
The bill also eliminated the provision for mandatory export of sugar
produced from imported raw materials because the provision violates WTO
norms and has prompted numerous observations from member-countries of
the organization.

In total, three quotas exist: Quota A (the quota for delivery of sugar on
the domestic market, which represents the maximum quantity of sugar that can
be delivered onto the domestic market from September 1 of the current year
to September 1 of next year to meet demands on the domestic market); Quota
B (the quota for delivery of sugar under international agreements, which
represents the quantity of sugar to be exported out of Ukraine under
international agreements and the addition to Quota A when necessary); Quota
C (the quantity of sugar produced in excess of quotas A and B and intended
for sale by its owners exclusively outside the country).

Quotas A and B are set annually by the Cabinet of Ministers.

As Ukrainian News earlier reported, in April the Cabinet set the maximum
size of the quota for sugar deliveries on the domestic market (Quota ?)
during the 2005/2006 marketing year (from September 1, 2005 to September
1, 2006) at 1.79 million tons.

The Cabinet sets Quota A (the quota for delivery of sugar on the domestic
market) at the start of every year in accordance with the law on state
regulation of the sugar market that was adopted by the parliament in June
1999. Ukraine has 192 sugar refineries designed to produce 5 million tons of
sugar per year. The volume of the domestic sugar market is between 1.8 and 2
million tons per year. -30-
===============================================================
10. RADA REFUSES TO HARMONIZE SANITARY, VETERINARY AND
PHYTOSANITY REGULATION OF FOOD MARKET WITH WTO STANDARDS

By Khrystyna Protsiv, Ukrainian News Agency, Kyiv, Ukraine, June 22, 2005

KYIV - The Verkhovna Rada has refused to harmonize the sanitary, veterinary
and phytosanitary regulation of the food market in accordance with the
standards of the World Trade Organization (WTO).

The bill "On Amending the Law of Ukraine "On the Quality and Safety of Food
Products and Food Raw Material" was supported by only 131 deputies, given
the minimum of 226 votes required for passage.

An explanatory note says that the proposed bill regulates relations between
government executive agencies, sellers (suppliers) and consumers of food
products and it outlines the legal procedure aimed at ensuring safety and
quality of food products, which are produced, in circulation, imported and
exported.

If adopted, the bill would make it possible to ensure a high level of
protection, safety of public health, and also protection of consumers, and
would ensure transparent and rational legislative regulation; give producers
and the suppliers the main responsibility for quality and safety of food
products; will ensure competitiveness of the industry and will expand
export; will ensure free movement of goods within the framework of a joint
market.

As Ukrainian News earlier reported, bill was authored by the Cabinet of
Ministers. President Viktor Yuschenko had earlier criticized the Cabinet for
moving too slowly in preparing Ukraine for membership in the WTO. Ukraine
wants to join the WTO by the end of 2005. -30-
===============================================================
11. RADA DECLINES TO BRING UKRAINE'S LEGISLATION FOR PLANT
QUARANTINE, VETERINARY MEDICINE AND FOOD SAFETY IN LINE
WITH WTO REQUIREMENTS

By Zoya Zhminko, Ukrainian News Agency, Kyiv, Ukraine, June 22, 2005

KYIV - Th e Verkhovna Rada has declined to bring Ukraine's legislation in
the areas of plant quarantine, veterinary medicine, and food safety in line
with international standards and the requirements of the World Trade
Organization (WTO).

The first reading of the relevant draft law, which is entitled "On
Introducing Amendments in Certain Ukrainian Laws" (on sanitary and
epidemiological norms for food products) and registered as No. 7595,
received only 208 votes while at least 226 votes were required for its
approval.

The aim of the draft law was to eliminate the internal contradictions in the
active legislation and bring the legislative base in line with international
standards and the requirements of the WTO, including the Agreement on
Application of Sanitary and Phyto-Sanitary Measures.

The draft law provides for making the relevant amendments to the
Administrative Violations Code, the laws "On State Regulation of Importation
of Agricultural Products," "On Ensuring Sanitary and Epidemiological
Well-Being of the Population," "On Foreign Economic Trade," "On Pesticides
and Agricultural Chemicals," "On Protecting the Population from Infectious
Diseases," "On Protection of Plants," and "On Licensing Certain Types of
Business Activities."

Parliamentary deputies decided to hold a repeat consideration of the first
reading of the draft law; this decision was approved by 244 votes.
As Ukrainian News earlier reported, the Cabinet of Ministers recently
proposed that the parliament harmonize Ukraine's legislative base in the
area of plant quarantine, veterinary medicine, and safety of food products
with international standards and the requirements of the World Trade
Organization.

President Viktor Yuschenko recently criticized the Cabinet of Ministers for
going too slow on preparing Ukraine to join the WTO.
Ukraine is hoping that the European Union will grant it the full status of a
country with market economy before the meeting of the Ukraine-European
Union Cooperation Council that is planned for June 13. Ukraine is aiming
to join the WTO by the end of 2005. -30-
===============================================================
12. RUSSIAN DUO EYE UKRAINE PLANT
Russian oligarchs buying up prize Ukrainian assests from local oligarchs

By Tom Warner in Kiev, Financial Times
London, UK, Wednesday, June 29 2005

Russian industrialists Viktor Vexelberg and Alexander Abramov intend to
buy one of Ukraine's largest metallurgy plants, Nikopol Ferroalloy, in spite
of an unresolved government challenge to the plant's privatisation. The deal
was confirmed by Mr Vexelberg's holding company, Renova, and by a
spokesman for the plant's current owner, Ukrainian industrialist Viktor
Pinchuk.

Under the terms, a newly formed company owned 50-50 by Renova and the
main shareholders of Evrazholding, including Mr Abramov, would buy a 74
per cent stake in Nikopol, the world's largest producer of manganese alloys.

Evraz would not itself take part in the deal, which analysts estimated would
be worth $280m-$380m. Nikopol produces about 1m tonnes a year of
ferromanganese and silicomanganese.

Russian oligarchs appear to be positioning themselves to buy up prize
Ukrainian assets from local oligarchs who were on the losing side of last
winter's Orange Revolution. Mr Pinchuk is son-in-law of Ukraine's former
president, Leonid Kuchma.

Ukraine's new government has appealed to the courts to cancel two
privatisation tenders held in 2003 in which Mr Pinchuk, the only bidder who
qualified, acquired just over 50 per cent of Nikopol's shares for $77m.

Andrey Shtorkh, Renova's director of strategic planning, said he expected
the takeover to be completed in two months. He did not know if the deal
depended on the dispute with the government being resolved first, but he
said Renova was confident it could resolve a separate challenge to the 2003
tenders brought by a rival Ukrainian oligarch, Igor Kolomoysky, who owns 26
per cent of Nikopol and two nearby manganese mines.

"We think the Ukrainian government will be interested in having investors of
our calibre. Our attitude is, 'everything will be alright'," Mr Shtorkh
said. The government had been climbing down from initial plans to reverse
many privatisations and had become willing to compromise with big business,
a Renova official said.

The government recently partly restored preferential electricity prices to
an aluminium plant bought by Mr Vexelberg's other company, Sual, and
appeared to have abandoned efforts to reverse its privatisation, he said.
===============================================================
13. EU VICE-PRESIDENT URGES UKRAINE TO FIGHT CORRUPTION
Need for separating business and government posts

TV 5 Kanal, Kiev, in Ukrainian 1800 gmt 28 Jun 05
BBC Monitoring Service,UK, in English, Tue, Jun 28, 2005

KIEV - European Commission Vice-President Siim Kallas has called on
Ukraine to introduce an effective audit mechanism in state management to
fight corruption. Speaking in an exclusive interview to 5 Kanal TV channel,
he emphasized the need for separating business and state posts.

Commenting on the recent positive signal given to Ukraine by NATO
Secretary-General Jaap de Hoop Scheffer, Kallas said that Ukraine should
not expect to join the EU soon after it joins NATO. The following are
excerpts from the report by Ukrainian television TV 5 Kanal on 28 June:

[Presenter] European Commission Vice-President Siim Kallas discussed
administrative reform and the fight against corruption with the Ukrainian
president yesterday. Andriy Zhyhulin has recorded an exclusive interview
with Mr Kallas. [Passage omitted: Kallas came to Ukraine to learn more
about its politics.]

[Kallas, in English overlaid with Ukrainian translation] I don't remember
how many times I've visited Ukraine before, but I am here for the first time
after the Orange Revolution. I agree with the opinion of my political
colleagues that Ukraine has changed a lot. Ukraine's entry to the EU reminds
me of a football game. Unfortunately, it is not possible to score a goal
every minute.

You, Ukrainians, have scored many goals at once. These are the changes I
have already mentioned. But you are facing difficult reform in many areas of
your society. It is very important for Europe to establish good neighbourly
relations with Ukraine and then for them to move towards each other
depending on how fast Ukraine reforms itself. In addition, the EU is facing
difficult times now. The main thing or us is to settle our internal
problems.

[Correspondent] Mr Kallas, you are responsible for fighting corruption in
the European Commission. What would you advise Ukraine in this respect?

[Kallas] Overcoming corruption in any country is a very difficult task for
any government. I am very pleased that the Ukrainian leadership has
declared it will fight corruption. If you look at international ratings
today you will see that Ukraine is on top in the list of the most corrupt
states.

So, any country - including Ukraine - should have mechanisms that help
overcome corruption. Politicians should be very resolute about this.

Corruption should be eradicated completely or its basis should be destroyed.
Its main aspect here is the rule on separation between state service and
business. Participation of politicians in commercial activity provides
grounds for corruption and leads to big problems. I even advised that a code
of state officials' behaviour should be adopted, where the problem of
combining business and state posts would be banned on the very first page.

The main thing here is transparency. Supervisory boards should be set up to
observe the adherence to this principle. A system of strict audit and
control should be set up, otherwise corruption won't disappear.

[Correspondent] In your answer you were talking about introducing effective
auditing as means to fight corruption. What is the level of audit in Ukraine
today?

[Kallas] It is not important what the audit was or is. It is important what
it will be like. And here everything is simple. This is a purely technical
issue. The rules are the same for everyone and Ukraine should only
introduce quality auditing in its state management, proceeding from
international norms.

[Correspondent] NATO Secretary-General Jaap de Hoop Scheffer visited
Ukraine recently. He gave Ukraine an important and serious signal on
Ukraine's membership in NATO. Can we expect such signals from the EU
any time soon?

[Kallas] The EU's position on Ukraine is quite clear. It is the
implementation of the neighbourhood plan. Entry to both NATO and the EU
requires many changes in Ukraine, which wants to join them. This is a
process that will take many years. I recall that Estonia joined NATO and
the EU almost simultaneously. But before that it seriously changed its
legislation and living standards were raised to the European level.

In addition, the procedure to join these organizations is quite different.
Joining NATO does not mean guaranteed EU membership nowadays. We
held talks on NATO membership for seven years, and we were going to
Europe for a decade. I repeat, this is hard and painstaking work. The main
thing for Ukraine is to adhere to the provisions of the Copenhagen plan.
[passage omitted: Kallas says Ukraine changes significantly] -30-
===============================================================
14. EUROPEAN UNION TO ALLOCATE 20M EUROS TO HELP UKRAINE
WITH ADMINISTRATIVE REFORM AND TO FIGHT CORRUPTION

Interfax-Ukraine news agency, Kiev, in Russian 0828 gmt 28 Jun 05
BBC Monitoring Service, UK, in English, Tue, Jan 28, 2005

KIEV - The European Commission will allocate 20m euros to implement
administrative reform and combat corruption in Ukraine, the head of the
European Commission's mission to Ukraine, Ian Boag, said at the joint news
conference with European Commission Vice-President Siim Kallas in Kiev
today.

"The European Commission is ready to assist the Ukrainian authorities in
fighting corruption. The assistance will be provided in the framework of the
TASIC programme. The European Commission will allocate around 20m euros for
administrative reform and combating corruption," Boag said.

He said that the resources allocated in the framework of the TASIC programme
as a grant would be distributed among six or seven projects. He added that
preparation of the projects is under way, decisions on some of them have
been made, decisions on the rest will be adopted the following week.

Siim Kallas said that on Monday [27 June] he had several meetings with
President [Viktor] Yushchenko, the deputy prime minister for administrative
reform, Roman Bezsmertnyy, Interior Minister Yuriy Lutsenko, Justice
Minister Roman Zvarych and the secretary of the Security and Defence Council
of Ukraine, Petro Poroshenko.

Kallas said that it is too soon to predict whether the level of corruption
and abuse of power would decrease in Ukraine. In his view, combining
business activities with being an official poses the biggest threat.

Kallas also said that representatives of the European anti-fraud bureau
(OLAF) would visit Ukraine in the nearest future to discuss cooperation with
Ukraine in the field of combating corruption. -30-
==============================================================
15. RUSSIAN MP SAYS BUSINESS WORLD CONCERNED ABOUT THE
"LACK OF CLARITY" IN UKRAINE'S BUSINESS AND POLITICAL CLIMATE

RIA news agency, Moscow, in Russian 0908 gmt 28 Jun 05
BBC Monitoring Service,UK, in English, Tuesday, Jun 28, 2005

MOSCOW - Russian entrepreneurs are concerned at the lack of clarity in the
business and political climate in Ukraine, RIA was told today by the head of
the State Duma Committee on the CIS and Relations With Compatriots,
Andrey Kokoshin.

"Talking with Russian and Western businessmen it is clear that the business
world is feeling growing concern at the increasing lack of clarity regarding
the business and political climate in Ukraine," he said.

He said that the "chaos and contradictory nature of the statements and the
actions of the authorities in Kiev and in the localities in Ukraine on
issues of property and economic policy in general" are becoming more and
more obvious to the business community.

Experts on the Ukrainian economy note that not a single cent of foreign
investment has come into the country since the change of power, he added.

He said that the state of affairs regarding property and its relationship
with the authorities in Ukraine is also worrying Russian deputies more and
more "as a factor of the overall economic situation in the post-Soviet area
by virtue of the high level of interdependance, including that between the
economies of Russia and Ukraine". -30-
===============================================================
16. UKRAINE'S UPHILL EUROPEAN UNION STRUGGLE

By Brussels journalist David Ferguson
Euro-Reporters.com, Brussels centered journalist network
Brussels, Belgium, Tuesday, 28 June 2005

"Ukraine is clearly committed to reform and shares our fundamental values.
There is still a lot of work to do to promote democratic and economic
reforms. Ukraine and the EU know that this won't happen overnight," said
European Commission Vice-President Siim Kallas ending a two-day visit
to Kiev.

Following the rejection of the Constitution by French and Dutch voters, a
growing number of politicians from richer old EU Members, the latest being
French Interior Minister Nicolas Sarkozy, have called for enlargement to be
frozen. "We must hold up enlargement at least until institutions have been
modernised. Europe cannot enlarge for ever," Sarkozy said on Monday after
meeting newly installed French Prime Minister Dominique de Villepin. The
meeting was aimed at fleshing out a new EU strategy following the rejection
of the Constitution.

As for Kallas, he is the fifth European Commissioner to travel to Kiev in
the six months following the election of President Viktor Yushchenko. That
shows the level of commitment by EU institutions to implementing cooperation
plans framed in an EU-Ukraine Action Plan and signed in February.

Hailing from a former Soviet republic himself, Estonian Kallas is fearful
that the EU's drawing a line on further enlargement may encourage new
democracies in eastern and south-eastern Europe to backslide.

But despite the amount of flying between Brussels and Kyiv, the EU door is
definitely closed for Ukraine. "Yushchenko was very wise not to send a
premature application for membership," admitted Enlargement Commissioner
Olli Rehn, speaking last week at a breakfast event organized by the
Brussels-based think-tank, the European Policy Center.

"Enlargement has been stretched to its limits," said Rehn. "We want to bring
the Ukraine closer to the EU by concrete measures like free trade, market
economy status, enhancing market functioning, better dialogue, improving the
opportunities for Ukrainians to study and work in the EU," continued Rehn.
"The Ukraine is indisputably a European country. The Treaties say that any
European country that respects European values may apply to join."

In Kyiv, Kallas also concentrated more on practical steps. "The Commission
fully supports Ukraine in its efforts step by step to implement the EU
Ukraine Action Plan and the complementary conclusions on Ukraine of the
General Affairs and External Relations Council of 21 February," said Kallas.

"I am confident that Ukraine's government and people will rise to challenges
that include reform of the administration and the judiciary, in particular
with a view to ensuring the rule of law and to strengthening the confidence
of investors."

Kallas, who is responsible for administrative reform, audit and
anti-corruption in the Brussels administration also met with Deputy Prime
Minister Roman Bezsmertnyi in charge of administrative reform, Interior
Minister Jury Lutsenko, and other top officials.

Ukraine is facing an uphill struggle to maintain a clear separation between
business and politics and ensure security of domestic and international
investment. Extensive administrative reform is needed in the former Soviet
Union republic as well as stronger policy aimed at fighting corruption and
eliminating red tape.

Earlier this month top Ukraine officials were in Brussels for the Ukraine-EU
Council. "Now is the moment to get down to work and this is the goal of the
Action Plan," EU External Relations Commissioner Benita Ferrero-Waldner
told them at the time. "We want to see the Ukraine get closer to the EU. An
important question is visa facilitation. I can say a mandate will be given
before the summer."

On 1 May, Ukraine unilaterally introduced a visa-free regime for EU
nationals and Swiss citizens, partly to facilitate travel before and after
the Eurovision song contest held in Kyiv. Although, the visa-free regime
remains in effect until 1 September 2005, Yushchenko wants to further
extend the visa-free regime. -30- (http://euro-reporters.com/)
===============================================================
17. UKRAINE PRESIDENT VIKTOR YUSHCHENKO TO RECEIVE
2005 PHILADELPHIA LIBERTY MEDAL AND $100,000

PR Newswire, Philadelphia, PA, Tuesday, June 28, 2005

PHILADELPHIA - Victor Yushchenko, the President of Ukraine, whose
courageous fight for free and fair elections inspired millions in his
country and around the world and led to the end of a corrupt government,
has been named the recipient of the 2005 Philadelphia Liberty Medal by
its distinguished International Selection Commission.

President Yushchenko will accept the Medal and its accompanying $100,000
at the National Constitution Center in Philadelphia on September 17,
America's Constitution Day.

The Philadelphia Liberty Medal, established in 1988, honors an individual or
an organization from anywhere in the world that has "demonstrated leadership
and vision in the pursuit of liberty of conscience or freedom from
oppression, ignorance, or deprivation." It is administered by the
non-profit, non-political, Philadelphia Foundation.

Professor Martin Meyerson, Chairman of the Medal's International Selection
Commission and President Emeritus of the University of Pennsylvania, said,
"President Yushchenko's courageous leadership in guiding the 'Orange
Revolution' is reminiscent of the heroism of Vaclav Havel in Czechoslovakia
and is likely to inspire other freedom-seeking, democracy-loving people.
Now, as a charismatic political leader, he is transforming his country into
a modern civil society. As a shaper of a new nation, he merits being seen as
the Ukraine's George Washington."

H. Craig Lewis, Chairman of The Philadelphia Foundation, commented, "We
are delighted to make the announcement of President Yushchenko's selection
on June 28, Ukraine's Constitution Day, and will welcome him to Philadelphia
on our national Constitution Day, September 17. He will join a distinguished
roster of other Liberty Medal winners who have truly championed freedom and
democratic values for the benefit of their nations and the world."

Viktor Yushchenko was born in 1954 in the Sumy region of northeastern
Ukraine. After studying economics at the University he began a financial
career, starting as a rural accountant and progressing in 1993 to head the
national bank of the newly independent Ukraine. His success there led to his
appointment as prime minister in December 1999 by President Leonid
Kuchma.

Dismissed by Kuchma in 2001 because of his rising popularity, Yushchenko
became head of the Our Ukraine opposition bloc, and, as Kuchma's term
ended in 2004, he announced his independent candidacy for president.

The presidential campaign was contentious. Yushchenko had great popular
support, but the state-run television channels and Russian President
Vladimir Putin continually touted his major rival, Prime Minister Viktor
Yanukovych. Among the "dirty tricks" was dioxin poisoning of Yushchenko,
allegedly by government officials, which left his face disfigured and
pockmarked just weeks before the election.

The official tally awarded a narrow victory to Yanukovych, but allegations
of widespread fraud prompted Yushchenko and his supporters to refuse to
recognize the results. There were massive popular protests around the
country, and thousands camped out in the main square of Kiev in bitter
winter weather while wearing orange as a sign of solidarity. Finally the
Supreme Court overturned the election results, and Yushchenko won the
repeat ballot.

As President he has begun to expose the massive corruption of Kuchma's
regime, replacing thousands of bureaucrats, and pledging financial reforms,
new jobs, and a higher standard of living. He is also aggressively pursuing
membership in the European Union.

Mayor John F. Street will present the 2005 Liberty Medal on Saturday,
September 17 at the National Constitution Center on Independence Mall in
Philadelphia. Mayor Street said, "Viktor Yushchenko is an inspiration to
people all over the world because of his brave and powerful reform movement
in Ukraine, leading to his election as President in 2004. I salute the
Liberty Medal Commission on his selection and look forward to welcoming
President Yushchenko to our city in September for the presentation
ceremony."

Past recipients of the Philadelphia Liberty Medal are:

2004 -- Hamid Karzai
2003 -- Sandra Day O'Connor
2002 -- Colin L. Powell
2001 -- Kofi Annan
2000 -- Dr. James Watson / Dr. Francis Crick (joint prize)
1999 -- Kim Dae Jung
1998 -- George J. Mitchell
1997 -- CNN International
1996 -- King Hussein I / Shimon Peres (joint prize)
1995 -- Sadako Ogata
1994 -- Vaclav Havel
1993 -- F.W. de Klerk / Nelson Mandela (joint prize)
1992 -- Thurgood Marshall
1991 -- Oscar Arias / Medecins sans Frontieres (joint prize)
1990 -- Jimmy Carter
1989 -- Lech Walesa

Six former recipients of the Liberty Medal have subsequently won the Nobel
Peace Prize. For more information visit Philadelphia Liberty Medal Web
site: http://www.philafound.org/ -30-
===============================================================
18. THE FAIREST PREMIER OF THEM ALL?

Yulia Tymoshenko helped Ukraine's president topple a sinister
regime. Now the two are heading for a political rift. So what
does the future hold for the heroine of the orange revolution?

By Askold Krushelnycky, Sunday Times Magazine
London, United Kingdom, Sunday, June 26, 2005

We can expect happy endings in fairy tales. But in politics? Well, perhaps,
sometimes, in snowy landscapes far, far away. Last winter, two equally
heroic figures dominated Ukraine's orange revolution, the peaceful uprising
in which pro-democracy protesters overturned their country's corrupt regime.

The first, Yulia Tymoshenko, brought a mesmerising passion to events. A
firebrand political orator, she addressed almost daily the demonstrators
thronging the Kiev streets in support of the second, the opposition leader
Viktor Yushchenko. The government had tried to prevent him from winning
the presidential election by organising massive fraud; it had also allegedly
poisoned him, leaving his face disfigured.

The demonstrators, sometimes a million strong, draped in orange flags and
clothing, fell a little in love with the beautiful Tymoshenko and the
once-handsome Yushchenko, who promised to rid Ukraine, a country larger
than France and with a population of 50m, of an authoritarian regime that
mingled the stagnation of its Soviet past with banana-republic ruthlessness.
Persevering in the cold, they forced an election that Yushchenko won.

Tymoshenko's reward was her appointment as prime minister. To many
Ukrainians, the Yushchenko-Tymoshenko partnership promised their country
an inspiring new story. But fairy tales can disguise a more complex
narrative.

Today the pair still display a public show of harmony, declaring they will
stand united in next spring's parliamentary elections to reinforce Ukraine's
journey towards democracy. Yet tensions between them are evident,
exacerbated by her rising popularity even as his support slowly ebbs. Both
their parties - Yushchenko's Our Ukraine and Tymoshenko's eponymously
named grouping - have similar agendas: strengthening democracy and
human rights, economic reform, ending corruption, and joining the EU
and Nato.

But this political harmony is marred by personal rivalries: the premier's
position is coveted by some of Yushchenko's political coterie, and even
members of hiscamp are dismayed by his occasional envy of Tymoshenko's
poll ratings. This is a story in which the heroine, though she would never
admit it, seems more interested in sitting on the throne than being the
power behind it. But does that cast her in a good or bad light? Is she
offering Ukraine a magic wand or a poisoned apple?

We begin to answer that question in her office on the seventh floor of the
cabinet building in Kiev, as her team awaits her 9am arrival. An eastern
European version of a West Wing team, there are 10 of them, all men, from
different backgrounds - academia, business, politics, journalism and the
intelligence services. Their mission is to remodel Ukraine for the better,
and with over 18,000 state officials from the old regime sacked in the first
weeks of the new administration, between February and April, there is much
to assess.

They agree privately, with comments by her opponents, that unless
rifts are healed, Tymoshenko's party may break the orange coalition and
contest the parliamentary elections to secure a pivotal role for itself, one
that would provide the springboard for her own bid in the next presidential
election, scheduled for 2009.

It is a surprise to hear her greet staff and guests in a quiet, almost
self-effacingly polite voice. With a few exceptions, as we observe her over
the following days, she uses the same gracious tones with everyone. It's a
different but equally effective tone to the strident one used in public
oratory, suggesting she has the strength not to strive to continually
impress. She laughs easily and often blushes if given praise. Does the
fairy-tale heroine have grace? Apparently so.

The friendliness is genuine but it is obvious she works hard on her image.
She employs a photographer who has chronicled her looks and life for the
past seven years, and likes to keep fit, usually starting her day with a
run. She said: "I used to run 10 kilometres a day but I've had to do less
since I became prime minister." Breakfast is a cocktail of vitamins and
fruit juices, and she does not seem to eat anything during her working day,
which often lasts late into the night. She is often dressed in expensive
designer clothes and high heels.

She says she does not like being photographed, yet in recent months she has
appeared on the cover of some of Elle magazine's European editions and
Poland's May issue of Playboy, where she appeared - fully clothed, of
course - because readers had said she was the woman they most respected.

Many view her as a sex symbol, and Tymoshenko admits she sometimes
exploits her femininity, but claims her best weapons are sound and
persuasive arguments.

One morning is devoted to presiding over a meeting with the French
ambassador, some of the top executives from one of France's most prestigious
companies, several of her ministers and representatives from Ukrainian
business. Tymoshenko is the only woman in the room with 18 men. It's clear
that her intellect and glamour hold a fascination for most in the meeting.

Another day, Tymoshenko discovers that her government's attempt to regain
control of a large smelting plant that had been auctioned off at cut-price
rates to an ally of the former regime is being undermined, minutes ahead of
a crucial board meeting. She telephones the state official who is scuppering
her plans. Dissatisfied with his explanation, she tells him to reconsider
for 10 minutes, after which time she will talk to him again: "You're
supposed to be serving the state, not helping out a crook." During the
interval she furiously works the three phones on her desk and two mobile
phones to get information about him.

It emerges that the official was appointed by the former president Leonid
Kuchma, the procedure for firing him has to be approved by parliament, and
he is probably in league with the businessman. When Tymoshenko calls him
again, he prevaricates. Without raising her voice she says: "If you continue
to side with this criminal who's been ripping off Ukraine, things will end
badly for you. I'm going to adjourn the meeting for one hour to let you
change your mind."

After finishing that conversation she phones one of her staff and says of
the errant official: "The man is corrupt and is not going to change his
mind. Find out how we fire him."

A conversation for our benefit? Probably not. After a few seconds she
resumes our interview, perfectly composed, and talks about her early life.
Does the fairy-tale heroine have a rags-to-riches story? Of course. She was
born Yulia Hryhyan in 1960 in one of Ukraine's biggest industrial cities,
Dnipropetrovsk, when the republic was part of the USSR, an only child raised
by a mother she adores.

Tymoshenko is reluctant to talk about her father, except to say he was not
around to bring her up. Even by the then prevailing Soviet standards, she
says she and her mother were considered poor and able to afford few
comforts in their tiny flat in a dilapidated high-rise.

She did well at school and went on to study economics at Dnipropetrovsk
University. And it would seem fate played a part in her story. She said the
course of her life was changed by a chance phone call made by a man who
had misdialled. She was pleased when he rang again, this time deliberately.

After a series of conversations, the two agreed to meet. They swiftly fell
in love and married in 1979. Her husband, Oleksandr Tymoshenko, was also
an impecunious student. When their daughter was born the next year it was a
mixed blessing. The couple continued their studies and took back-breaking
jobs for paltry wages in their spare time to get money to buy food and
clothes for their baby. One of Yulia's jobs was shifting and stacking huge
tyres, twice the size of a man, in the factory where they were made.

In the second half of the 1980s, things were changing as the Soviet leader
Mikhail Gorbachev embarked on his perestroika reforms to liberalise the
centralised economy that had forbidden private endeavour and enterprise.

The Tymoshenkos grabbed the chance to work for themselves. They borrowed
cash from Oleksandr's father, a well-connected communist official, and set
up a number of modest sites where the paying public could see videos of
Hollywood films. The "video salons" gave them the cash to start trading in
petrol and diesel, and the connections and money they made turned them into
Ukraine's largest electricity provider. At least, this is the tale as
Tymoshenko would have it told - it clashes with the version not only
provided by her detractors but also by some of her friends.

One of the senior opposition politicians in the orange coalition, who is
still friendly towards Tymoshenko, said of her dealings: "To ordinary
people, the way she and other oligarchs conducted their business seemed
crooked, and morally it probably was. But it 's been hard to prove the deals
were illegal, as they were usually done within laws that had been created to
enable the chosen few to exploit them."

The energy sector was, and still is, the most lucrative and corrupt segment
of business in the former Soviet Union. Those with connections to Ukraine's
then president, Kuchma, exploited loopholes that meant the state budget paid
for electricity manufacture, but Kuchma's cronies made huge, no-risk profits
by selling electricity to local authorities and nationalised industries.

Tymoshenko says that as head of a company called United Energy Systems
of Ukraine - once credited with an annual turnover of $10 billion - she
never made more than $5,000 per month and worked with Ukraine's interests
at heart.

At that time she was believed to be the wealthiest woman in the former USSR.
She was able to send her daughter to be educated privately in Britain, first
at Rugby, then at the LSE. Her main residence in Ukraine remains a palatial
abode she had built in her home city. Her story captured the popular
imagination and the media dubbed her "the Gas Princess". She was known for
generous donations to charities and to churches. Contributions to sports
charities led to a local youth football team being named after her.

Among her closest business collaborators was Pavel Lazarenko, an oligarch
crony of Kuchma's, whom Kuchma later made prime minister. Kuchma and
Lazarenko became fabulously wealthy, with the latter buying luxury homes in
the US, including Eddie Murphy's Hollywood mansion. But the two fell out
when Lazarenko exhibited an ambition to become president. In 1999 he fled
Ukraine and was arrested trying to enter the US on a Panamanian passport.

He was held in prison on accusations of money-laundering and other financial
misdeeds. Lazarenko told the US authorities that Kuchma had taken a cut of
every dodgy deal the former president was involved in. Lazarenko was found
guilty of financial misdeeds by a court in San Francisco last year, but is
yet to be sentenced.

In 1996 "the Gas Princess" decided to run for parliament and won her seat
with a huge majority. "Every normal person who saw what was going on in
government could not be on the same side of the barricades as Kuchma," she
says. "He was destroying our national interests. There was complete
deception, complete corruption, and an absolute absence of any justice." She
said the Kuchma government used the courts and intimidation against her
family and colleagues to persuade her to fall in line. Knowing Kuchma would
declare war against her, she formed her own party and became one of
Kuchma's fiercest critics.

In 1999, to bring respectability to his administration, increasingly
attacked by western governments, Kuchma appointed as prime minister a man
who enjoyed a reputation for honesty and economic competence inside and
outside Ukraine: Viktor Yushchenko. Yushchenko appointed Tymoshenko as his
deputy. He knew that the success of his government, and his pledge to make
good on hundreds of millions of dollars in wage arrears to state employees
and pensions, depended on curbing rampant corruption in the energy sector.

Tymoshenko was the person who had the poacher-turned-gamekeeper
expertise to do that. She interrupted some of the most lucrative scams,
which resulted in more than a billion dollars becoming available for back
pay and pensions.

But the anti-corruption campaign hurt some of Kuchma's top associates, and
the president moved to protect his friends. Tymoshenko's husband was
arrested on trumped-up fraud charges. Soon after, in 2000, Kuchma fired
Tymoshenko, who was arrested on faked charges. "They put me in a filthy cell
that hadn't been cleaned for years," she says. "I demanded a rag and bucket
of water. I cleaned my cell thoroughly, then hung the rag over the spyhole.

I told the wardens that if they took away that rag, I'd go on hunger
strike." The wardens obeyed her, but she stayed in prison for six weeks
until a Kiev court ordered her release, saying there was no case to answer.

Soon after Tymoshenko's imprisonment, Kuchma engineered a vote of no
confidence in Yushchenko to eject him from the prime minister's job. But in
its short term in office, the Yushchenko-Tymoshenko team had gained huge
popularity, and in the following years they laid the groundwork for an
opposition coalition of democratic parties.

Meanwhile, Kuchma's standing at home and abroad fell after he was
implicated in the murder of a journalist and the sale of weapons to Saddam
Hussein. Unable to stand for president again, Kuchma first appointed as
prime minister and then nominated as presidential candidate Viktor
Yanukovych, a man twice convicted of robbery and linked to Ukraine's
wealthiest, most sinister oligarch.

In 2004, long before the coalition opposition officially chose its
presidential candidate, Tymoshenko announced she herself would not stand,
but would throw her weight behind Yushchenko. Opinion polls showed
Yushchenko would win in a fair election, but Kuchma's administration would
never allow that to happen. It organised massive voting fraud in the first
and second election round, where Yushchenko and Yanukovych faced each
other in a runoff.

It was after the second round, in November 2004, that protesters took to the
streets. Tymoshenko's eloquence enthralled the crowds, and while her
opposition comrades counselled restraint and negotiations, she led
protesters to surround key government buildings where demonstrators faced
special police with helmets, riot shields and guns. After protesters
surrounded the presidential administration offices, she agreed to go inside
the heavily defended building to negotiate with Kuchma.

Many advised her not to go in, because they feared the regime would arrest
her or worse. She walked in and everyone waited in the night as heavy
snowflakes fell on riot police and demonstrators. When Tymoshenko emerged
she was greeted with a great cheer. The fairy-tale heroine had displayed
courage, confronting the beast in its lair and returning triumphant.

And yet there's always another monster to slay. And some aren't easy to pin
down. Tymoshenko has stated she still wants Kuchma - who is currently lying
low in Ukraine - brought to justice. Law-enforcement agencies are working to
untangle what happened during his time in office, whether he has foreign
accounts and where they are. In challenging Russia's oil monopoly, she
brought on a petrol crisis in May. For a few days, Russia stopped oil
supplies, causing shortages throughout the country.

A fairy-tale heroine doesn't always win universal admiration. One of her
deputy prime ministers, Anatoly Kinakh, went on TV to criticise her, saying
she was more interested in gaining popularity than making vital changes to
the economy. Other senior members of the government encouraged stories
that she was not only behaving frivolously but had engineered the fuel
crisis and economic crises involving the currency and the price of meat, to
the advantage of some of her corrupt associates.

Another accusation levelled at her is that her eagerness to review most of
the thousands of privatisations conducted during the Kuchma era has created
a climate of uncertainty that has discouraged much-needed foreign
investment.

In May it was reported that, during an argument, Yushchenko told Tymoshenko
she should resign. Both later denied this and said Yushchenko made the
comment in jest. But privately, Tymoshenko's aides say that heated exchanges
between her and Yushchenko have left her shaken, and that her opponents have
thwarted her plans to hit hard at corruption because some of her opponents
are corrupt themselves.

The Ukrainian president holds the lion's share of political power, but
changes in 2006 will devolve much of it to the prime minister. Tymoshenko
says she does not want extra power, and wants Yushchenko to continue as
leader. However, Tymoshenko's party has been growing in strength, with
defectors joining from other parties. Under Ukrainian law, she cannot be
forced out until she has served a year, but some predict she will resign
this year to distance herself from the government before next spring's
elections.

The prospect of such a split dismays those who braved harsh weather and
possible violence to support Yushchenko and Tymoshenko last year. Yet, if
you close your eyes and make a wish, a fairy-tale outcome may still be
possible. Why? Because the heroine believes in it herself, though in
politics sincere belief is not the same as true knowledge: "My life and my
faith are completely linked. I have faith in love, goodness, justice and, as
in the fairy tales, I believe in the end, good always triumphs." -30-
===============================================================
19. UKRAINAIN PRIME MINISTER TYMOSHCHENKO DETERMINED
TO "BRING ORDER" FOR STABILITY

EXCLUSIVE INTERVIEW: Ukrainian PM Yulia Tymoschenko
Interfax-Russia, Moscow, Russia, Tuesday, Jun 28 2005

KYIV - Ukrainian Prime Minister Yulia Tymoshenko has explained her
position on a number of pressing problems in Ukraine's current domestic
and foreign policies. In the run-up to parliamentary elections to be held in
Ukraine next year, Tymoshenko said she believes it is necessary for the
Yulia Tymoshenko Bloc, Our Ukraine, and the People's Party led by
speaker Volodymyr Lytvyn to set up a tripartite coalition.

"I want the people from the Our Ukraine Party, who are currently shaping the
opinion of our president, to understand that I am satisfied with what I have
and that I do not have high ambitions," Tymoshenko said.

"It is simply enough for me to be prime minister, in order to bring order to
my country, even if it has to be a step-by-step procedure and even if I have
to struggle. This is why our team and I personally want only one thing -
stability in the system of authority," she said.

"We want this stability to serve as a foundation for harmony in the team.
This is why I want this bloc to be created as a symbol of the authority's
stability and long life," the prime minister said.

Touching on another difficult problem in the Ukrainian policy -
privatization, Tymoshenko said the Ukrainian government favors the
passage of legislation that would list several dozen strategic facilities to
be revalued and re-privatized.

The facilities' current owners would have priority to buy them out, taking
into account the investments they have already made, Prime Minister Yulia
Tymoshenko said in an interview with Interfax. The bill was drafted four
months ago, but "a powerful lobby" is hindering its passage, she said.

There are three scenarios for the state's behavior if arguments surrounding
the facilities and land that was privatized earlier grow more tense,
Tymoshenko said.

Under the FIRST scenario, the government would not intervene in the process,
"and the country's courts would carry out tens of thousands of proceedings
to redistribute property," she said.

"Sure, we can follow this first scenario, but there are at least two serious
problems here. The first is that the people will not understand why nobody
is restoring legality in this sphere, and the second is inter-corporate
debates that would block investments in the country for ten years,"
Tymoshenko said.

In the SECOND scenario, "the state would selectively take some facilities
to court and be a party in litigation," the prime minister said. In this
case, "the situation for all the others would be absolutely unpredictable,"
she said.

"There is a THIRD scenario - pass legislation in order to pick, for
instance, several dozen strategic facilities, which can be revalued by a
special methodology, and give their owners priority to acquire their
enterprises at a real price. But all the other tens of thousands of
enterprises should be fully free from any prosecution regarding their
ownership," she said.

"It would be possible to set up a legal model of amnesty for all the others
and even issue them immunity certificates from the government, which we
could stipulate by this legislation," Tymoshenko said.

Tymoshenko also said she hopes that Ukraine and Turkmenistan will soon
sign a long-term agreement on gas supplies and will seek stability in
relations with Russia in this sector. "We strongly hope for a long-term
agree-
ment for gas deliveries for 20-25 years," Tymoshenko said in an exclusive
interview with Interfax. The presidents of the two countries are planning to
meet shortly, she said.

Last week, Ukraine and Turkmenistan signed an agreement under which as
of July 1 and throughout 2006, Ukraine will be paying for Turkmen natural
gas in foreign currency at $44 per 1,000 cubic meters on the Turkmen-Uzbek
border. Asked how settlements would be made if the long-term agreement is
signed, Tymoshenko said: "I think we will find a pattern acceptable for both
Ukraine and Russia."

Turkmen gas deliveries to Ukraine satisfy its needs fairly well, she said.
"No matter whether Ukraine will be taking the Turkmen gas itself or will be
delivering the gas to Ukraine together with Russia, the price is absolutely
acceptable for Ukraine. And I see nothing that would look like any stress or
a crisis in the strategy of our relations on the gas market." Tymoshenko
said she is confident that relations between Russia and Ukraine in the gas
sector will be stable. -30- (http://interfax.com)
===============================================================
20. CRUDE RAPESEED OIL EXPORTERS INTO THE EUROPEAN UNION

Theodor C. F. Cranendonk, MidOil B. V.
Rotterdam, The Netherlands, Monday, June 27, 2005

Dear Sir,
We would be pleased to receive The Action Ukraine Report by E-mail.
MidOil is interested to get in contacts with crude rapeseed oil exporters
for their imports into the EU. Thank you for your assistance.

Best regards, Theodor C.F. Cranendonk, Director,
MidOil B.V., Westerkade 7H,
3016 CL Rotterdam, The Netherlands
Tel: +31 10 440 08 22, Fax: +31 10 440 08 21; tc@MidOil.org
===============================================================
21. 'THE DAY' IS PREPARING BOOK ABOUT JAMES MACE
Collection of articles by the late Professor Mace
Wanting persons who knew James Mace to share their memoirs

LETTER TO THE EDITOR: From: Maria Zamyatina, time@day.kiev.ua
To: Morgan Williams, Editor, The Action Ukraine Report (AUR)
Sent: Kyiv, Ukraine, Friday, June 24, 2005
Subject: Memoirs Wanted For New Book About James Mace

Dear Morgan,

Thanks for your willingness to allow us to use, for our new book about James
Mace, the photographs of the paintings and graphics, from your Holodomor
collection, we wrote you about. I'm sorry for asking so many things for this
book, but here's one more thing I'd like to suggest.

Could we publish a short address in your Ukrainian Report saying that 'The
Day' is preparing a book about James Mace and that we invite all those, who
worked together with James and knew him personally and have something to
say about him, to share with us their memoirs and/or materials referring to
him. Memoirs should be sent to time@day.kiev.ua.

Our deadline is July 10, and it proved extremely difficult to contact people
across the ocean who could contribute to our book, so such an address
could be extremely helpful.

Thank you a lot in advance, Marina Zamyatina, The Day, Kyiv, Ukraine
===============================================================
22. UKRAINIAN-ITALIAN PORTAL WEBSITE

"Tony" kiev@email.it, Italy, Friday, June 24, 2005

Description: Tradition Ukraine in Italian's language and more.
URL: www.ukraina-italia.com/ukr
===============================================================
23. UKRAINIAN FOLK ENSEMBLE "BOZHYCNI"

Folk Ensemble Bozhychi, vamdf@yahoo.com
Kyiv, Ukraine, Monday, June 28, 2005

The Folk Ensemble “Bozhychi” was formed on January 7, 1999. It is
made up of eight members, most of which are students and graduates
of the ethnomusicology program in the National Music Academy of
Ukraine, P.I. Tchaikovsky.

Members of the ensemble take part in ethnomusicological expeditions
throughout the year. Here they record folk songs and dances which
become the main repertoire of the ensemble.

In the vocal repertoire there are lyric, seasonal, and cycle songs from
the Ukrainian regions of Chernihiv, Dnipropetrovsk, Poltava, Zhytomyr,
and Kyiv. The ensemble also performs traditional instrumental-dance
works from these regions. URL: http://www.bozhychi.com.ua
===============================================================
24. 19TH ANNUAL UKRAINIAN SUNFLOWER FESTIVAL
Warren, Michigan, August 12-14, 2004

Andrew J Zeleney, ajzeleney@comcast.com
Warren, Michigan, Wednesday, June 22, 2005

WARREN- The Ukrainian Sunflower Festival is among the most popular
and largest ethnic summer festivals in Michigan, attracting 25,000 people
annually.

The festival features traditional Ukrainian food, ethnic dancing in
traditional costumes, plus exhibitions and demonstrations of Ukrainian folk
crafts, especially embroidery and ceramics.

The parishes of two Detroit area Ukrainian Catholic churches, Immaculate
Conception Church, in Hamtramck, and St. Josaphat Parish in Warren,
began the festival during the 1980s to bring Ukrainian communities together,
and to share the beauty and importance of the Ukrainian heritage, culture
and traditions with other Americans.

The Ukrainian Sunflower Festival raises funds in support of your Immaculate
Conception Ukrainian Catholic Schools located in Warren, Michigan. Please
come and support us in our mission!

UKRAINIAN SUNFLOWER FESTIVAL HOURS:
Friday, August 12th - 5:00 p.m. to Midnight
Saturday, August 13th - Noon to Midnight
Sunday, August 14th - Noon to 10:30 p.m.
ONLINE at http://www.sunflowerfestival.org/
===============================================================
25. UKRAINE: LIFE2ORPHANS
Improving The Lives of Orphans Lives

From: Patie Wilcox, patiehome@yahoo.com
Volunteer Orphanage Coordinator, Life2Orphans
To: FriendsOfUkraine@yahoogroups.com
Sent: Tuesday, June 07, 2005 3:04 PM
Subject: [FriendsOfUkraine] New Member

Greetings All:
A friend of mine referred me to your group. Although I have not been
involved with the Peace Corps, I am currently volunteering my time to
a nonprofit called Life2Orphans that provides humanitarian assistance
to over 5300 orphans in 40 orphanages in Ukraine. Since part of your
mission is to help orphans, I wanted to let you know about L2O.

Life2Orphans is a virtual organization with support worldwide. It
was started by 2 adoptive Moms that wanted to help out orphans left
behind in Ukraine. We have a host a programs to support our goal
of "improving the lives of orphans lives.

If anyone has an interest in becoming involved with L2O or wants to
discuss ways to collaborate on behalf of orphans in Ukraine, please
contact me directly.

For more information about the various efforts of Life2Orphans, please
visit our website at http://www.life2orphans.org/

Thanks for reading this,
Patie Wilcox, Volunteer Orphanage Coordinator for Life2Orphans
===============================================================
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===============================================================
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