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Action Ukraine Report

"THE ACTION UKRAINE REPORT - AUR"
An International Newsletter
The Latest, Up-To-Date
In-Depth Ukrainian News, Analysis, and Commentary

"Ukrainian History, Culture, Arts, Business, Religion,
Sports, Government, and Politics, in Ukraine and Around the World"

"THE ACTION UKRAINE REPORT - AUR" - Number 541
Mr. E. Morgan Williams, Publisher and Editor
Washington, D.C. and Kyiv, Ukraine, MONDAY, August 15, 2005

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

1. MAJOR CONFERENCE ON UKRAINE BEING HELD IN WASHINGTON
UKRAINE'S QUEST FOR MATURE NATION STATEHOOD ROUNDTABLE VI
WASHINGTON, D.C, SEPTEMBER 27 & 28
"Ukraine's Transition To An Established National Identity"
The Action Ukraine Report (AUR), Number 541
Washington, D.C., Monday, August 15, 2005

2. CREATION OF A COMMUNITY OF DEMOCRACIES,
IN THE BALTIC-BLACK-CASPIAN SEAS REGION OF EUROPE
Community for Democratic Choice, hold Summit in autumn 2005
Full Text: Borjomi Declaration
Ukraine Victor Yushchenko; Georgia Mikheil Saakashvili
Civil.Georgia, Online-Magazine, Tbilisi, Georgia, Sat, Aug 13, 2005

3. GEORGIA, UKRAINE PUSH FOR NEW ALLIANCE
Misha Dzhindzhikhashvili, AP Online, Borjomi, Georgia, Sat, Aug 13, 2005

4. ARE UKRAINIANS SERIOUS ABOUT THEIR MEMORY?
ANALYSIS AND COMMENTARY: By R.L. Chomiak,
Ukrainian born American journalist now living in Kyiv
Published by The Action Ukraine Report (AUR), Number 541
Kyiv, Ukraine, Monday, August 15, 2005

5. KYIV CITY TO BUILD MEMORIAL TO VICTIMS OF POLITICAL
REPRESSIONS AND GREAT FAMINES BY 2007
Monument, museum and a park
Ukrainian News Agency, Kyiv, Ukraine, Mon, August 8, 2005

6. THE HISTORY AND LEGACY OF THE GULAG
Davis Center for Russian and Eurasian Studies at Harvard Univ
Major International Conference, Harvard Univ, Oct 19-22, 2006
Call For Paper Proposals: The History and Legacy of the Gulag
Steven A. Barnes, The Center for History and New Media
George Mason University, Fairfax, Virginia, Fri, August 12, 2005

7. AUSTRIA'S RAIFFEISEN BANK LOOKS EAST
Opportunities in Romania, unexpected difficulties encountered in Ukraine
By Haig Simonian in Zurich, Financial Times, London, UK, Aug 12 2005

8. IFC MAKES ITS LARGEST INVESTMENT IN UKRAINE'S FINANCIAL
SECTOR WITH 450 MILLION SUBORDINATED LOAN TO AVAL BANK
International Finance Corporation (IFC), Kyiv, Ukraine, Thur, Aug 11, 2005

9. WORLD'S LARGEST STEEL COMPANY MITTAL STEEL AND FRENCH
STEEL GROUP ARCELOR COMPETE FOR UKRAINIAN STEEL FIRM
Abstracted from Les Echos, France, Friday, August 12, 2005

10. GOVERNMENT COMPANY KHLIB UKRAINY TO EXPORT OVER 3
MILLION TONS OF GRAIN HARVESTED IN 2005
Ukrainian News Agency, Kyiv, Ukraine, Thursday, August 11, 2005

11. PM TYMOSHENKO DEMANDING REGIONAL GOVERNMENT ORG
START BUYING SUGAR FROM STATE RESERVES
Ukrainian News Agency, Kyiv, Ukraine, Thursday, August 11, 2005

12. PM TYMOSHENKO DEMANDS REGIONAL LEADERS IMPROVE
COLLECTION OF TAXES FOR THE STATE BUDGET
Ukrainian News Agency, Kyiv, Ukraine, Thu, August 11, 2005

13. UKRAINIAN SPEAKER LYTVYN SAYS NEW GOVERNMENT IN CRISIS
New administration is in the middle of a management crisis
UT1, Kiev, in Ukrainian 1800 gmt 12 Aug 05
BBC Monitoring Service, UK, in English, Fri, Aug 12, 2005

14. THE MYTH OF UKRAINE'S "THIRD FORCE" IN PARLIAMENT
COMMENTARY AND ANALYSIS: By Taras Kuzio
Eurasia Daily Monitor, Jamestown Foundation
Washington, D.C., Friday, August 12, 2005

15. NEW KYRGYZ PRESIDENT BAKIYEV PLEDGES A CLEAN STATE
Reuters, Bishkek, Kyrgyzstan, Monday, Aug 15, 2005

16. UKRAINE READY TO MAKE SEVERAL PROPOSALS ON REFORMING
COMMONWEALTH OF INDEPENDENT STATES AT SUMMIT MTG
ITAR- TASS, Bishkek, Kyrgyzstan, Sunday, Aug 14, 2005

17. UKRAINIAN CANADIAN CONGRESS (UCC) TO RECEIVE GOVERNOR
GENERAL OF CANADA COMMENDATION FOR ITS ROLE IN
UKRAINE'S PRESIDENTIAL ELECTIONS IN 2004
Ukrainian Canadian Congress (UCC)
Winnipeg, Manitoba, Canada, Monday, Aug 15, 2005

18. UKRAINE'S YURIY KRYMARENKO CLAIMS SURPRISE VICTORY IN
MEN'S HIGH JUMP AT WORLD CHAMPIONSHIPS IN HELSINKI
Reuters, Helsinki, Finland, Monday, August 14, 2005

19. UKRAINIAN DANCING TROUPE IN FOLKFARO, PORTUGAL, FESTIVAL
The Resident, Weekly Algarve Edition, Portugal, Thursday, August 11, 2005

20. TARAS SHEVCHENKO SCHOOL OF UKRAINIAN STUDIES
Registration for the 2005-2006 School Year, Wash, D.C.
Taras Shevchenko School of Ukrainian Studies, Wash, Mon, Aug 15, 2005

21. E-BOOK: UKRAINIAN REFERENCE GRAMMAR IN ENGLISH
Ukrainian Multimedia, Interactive Learning and Digital Publishing
The Ukrainian Language and Literature Program
University of Alberta, Department of Modern Languages
& Cultural Studies, Edmonton, Alberta, Canada, Mon, Aug 15, 2005

22. REVOLUTION INDUSTRY, PHASE 2:
UKRAINE'S SUMMER OF DISCONTENT
COMMENTARY AND ANALYSIS: by Christopher Deliso
Balkan-based Journalist, Travel Writer and Critic
AntiWar.com, Redwood City, California, Fri, August 12, 2005
=============================================================
1. MAJOR CONFERENCE ON UKRAINE BEING HELD IN WASHINGTON
UKRAINE'S QUEST FOR MATURE NATION STATEHOOD ROUNDTABLE VI
WASHINGTON, D.C, SEPTEMBER 27 & 28
"Ukraine's Transition To An Established National Identity"

The Action Ukraine Report (AUR), Number 541
Washington, D.C., Monday, August 15, 2005

WASHINGTON, D.C. - The sixth conference in the Ukraine's Quest for
Mature Nation Statehood Roundtable Series will be held in Washington,
D.C., September 27-29, 2005, under the title 'Ukraine's Transition To An
Established National Identity' according to an announcement by the
chairman of the conference's steering committee, Michael Sawkiw,
Jr., President of the Ukrainian Congress Committee of America (UCCA).

The two-day conference, during the course of four regular sessions, will
feature twelve topical panels, four focus sessions, two working lunches and
a Conference reception. The conference will be held at Washington's
Ronald Reagan Building and International Trade Center in the Pavilion
Room.

The gathering will bring together key government and non-government
representatives of Ukraine, the United States and several of Ukraine's
neighbors as well as experts from academia to evaluate Ukraine's ability to
develop a "firm center of gravity as a nation/state" and to define Ukraine's
"distinct sense of place in global affairs", particularly in the aftermath
of the historic Orange Revolution which took place in the fall of 2004,
resulting in the election of Viktor Yushchenko as president of Ukraine.

CONFERENCE FEATURES OVER SEVENTY SPEAKERS

Over 70 speakers, a veritable Who's Who from the American, Ukrainian
and European governmental, NGO and private sectors, have been invited
to provide their insights regarding the domestic and foreign policies of
Ukraine's current government and their impact on the development of a
new global face for Ukraine.

Invited speakers include: Borys Tarasiuk, Ukraine's Minister of Foreign
Affairs, Serhiy Teryokhin, Ukraine's Minister of Economy, Bronislav
Geremek, member of the European Parliament, and Steven Hadley, U.S.
National Security Advisor, according to information received by The
Action Ukraine Report (AUR).

The Roundtable series began when a number of Ukrainian and American
organizations convened in April of 2000 to consider ways of encouraging a
more engaged level of dialogue between the United States and Ukraine,
according to the program coordinator for the Roundtable series, Walter
Zaryckyj, Executive Director/Center for US-Ukrainian Relations/Associate
Professor of Social Sciences/New York University.

These deliberations led to a commitment to convene an annual conference
to monitor Ukraine's progress towards fuller integration into the Euro-
Atlantic community and assist in developing stronger bilateral relations
with the U.S, according to Zaryckyj (waz1@nyu.edu).

Such conferences are vital for and have proven extremely successful in
opening up lines of communication and strengthening bilateral relations
between the United States and Ukraine.

CONFERENCE FEES AND PATRONSHIPS

Conference executive coordinator, Tamara Gallo, UCCA executive
director, in information received by The Action Ukraine Report (AUR) said
the fee for the entire two-day conference, including lunches and the
reception is $250. The fee for attending the first day only is $125 and for
attending the second day only is $150.

Gallo explained such a modest fee is possible because over the past half
decade, the financial support of leading Fortune 500 companies and
prominent US foundations, as well as the patronage of Ukrainian American
financial institutions [including Credit Unions] and, increasingly,
businesses in Ukraine, has been an essential element in assuring the
financial success of the Roundtable Series.

Executive coordinator Gallo said Conference Patronship's are still available
and needed for the upcoming event, "Becoming a patron will identify a
company or organization as a key contributor to the general reform efforts
in Ukraine, a worthy cause given Ukraine's critical role in ensuring the
stability and security of an expanding Euro Atlantic community.

All Patron contributions are fully tax deductible under the 501(c)(3)
provisions of the U.S. tax code. For more information on becoming a
Roundtable Patron, please contact Tamara Gallo, Executive Coordinator,
(212) 228-6840, fax: (212) 254-4721, or e-mail: ucca@ucca.org.

HOTEL RESERVATIONS

Information sent by the executive coordinator to The Action Ukraine Report
stated a block of rooms have been reserved for the conference at The
Churchill Hotel, 1914 Connecticut Avenue, NW, Washington, at a
discounted rate. To obtain the discounted rate, hotel reservations must be
made by Thursday, September 1, 2005. For information about hotel
reservations please contact Ms. Daria Tomashosky, Hamalia Travel at:
hamaliasouth@aol.com or (941) 426 2542.

CONFERENCE STEERING COMMITTEE

CHAIRMAN: Michael Sawkiw, Jr,
VICE CHAIRS: William Miller, Bob Schaffer

COORDINATORS: Tamara Gallo, Mykola Hryckowian,
Mark Olexy, Vika Hubska, Marko Suprun, Walter Zaryckyj

MEMBERS: Vera Andrushkiw, Nadia Diuk, Katie Fox, Adrian
Karatnycky, Tom Keaney, Nadia Komarnycky McConnell, Serhiy
Konoplyov, John Micgiel, Richard Murphy, Steven Nix, Kyle Parker,
Herman Pirchner, John Van Oudenaren, Morgan Williams

SPONSORS: Congressional Ukrainian Caucus, US Library of
Congress, Embassy of Ukraine to the United States, American
Foreign Policy Council, Center For US-Ukrainian Relations,
International Republican Institute (IRI), National Democratic Institute
(NDI), Freedom House, Johns Hopkins University/SAIS, Columbia
University/ISE, Harvard University/BSSP, New York University/
LAP, Ukraine-United States Business Council, U.S.-Ukraine
Foundation (USUF), Ukrainian Congress Committee of America,
(UCCA), UKR American Civil Liberties Association.

For more information about participating in the Ukraine's Quest
for Mature Nation Statehood Roundtable VI conference please contact
the UCCA National Office, 203 Second Avenue, New York, NY 10003,
Tel: (212) 228-6840, fax: (212) 254-4721 or email ucca@ucca.org. In
Ukraine contact: Vika Hubska, area coordinator, ucca@i.kiev.ua.

The Action Ukraine Report (AUR) Monitoring Service will be publishing
additional information about Roundtable VI on a continuing basis, as it
becomes available, over the next few weeks. -30-
=============================================================
2. CREATION OF A COMMUNITY OF DEMOCRACIES,
IN THE BALTIC-BLACK-CASPIAN SEAS REGION OF EUROPE
Community for Democratic Choice, hold Summit in autumn 2005

Full Text: Borjomi Declaration
Ukraine Victor Yushchenko; Georgia Mikheil Saakashvili
Civil.Georgia, Online-Magazine, Tbilisi, Georgia, Sat, Aug 13, 2005

FULL TEXT: BORJOMI DECLARATION
Borjomi, Georgia, Friday, August 12, 2005

The Presidents of Ukraine and Georgia, express our strong belief that
the strengthening of democracy and civil society is one of the main tasks of
and prerequisites for the economic development of our countries and our
region, which set in Europe, unites the three seas - Baltic, Black and
Caspian, and is gifted with an enormous potential. Democracy and stability
in this region is also the condition for a lasting stability and security
for whole Europe.

We express our firm conviction that our region, if based and developed on
the right principles of democracy, freedom and prosperity, represents today
in Europe one of the major areas of opportunities, with a unique potential
of human resources, transit lines, energy resources and communications
between Europe, Central Asia and the Far East.

We pledge to conduct policies in our respective countries, Ukraine and
Georgia, based on those principles, as members of the European family,
sharing European values and history.

As members of the Community of Democracies sharing the universal goals
of the global forum that unites democracies worldwide, we adhere to the
principles of this Community and in line with the implementation of the
Seoul Plan of Action that envisages regional cooperation for the promotion
and protection of democracy.

In this regard, we are considering the creation of a community of
democracies in our part of Europe: the Community for Democratic Choice.
Our objective is to make this new community a strong tool to free our region
from all remaining dividing lines, from violations of human rights, from any
spirit of confrontation, from frozen conflicts and thus to open a new era of
democracy, security, stability and lasting peace for the whole of Europe,
from the Atlantic to the Caspian Sea.

We have thus decided to invite all the Leaders of the Baltic-Black-Caspian
Sea region, who share our vision of a new Europe, our faith in the future
and potential of this area and our democratic goals, to join us and the
Community of Democratic Choice. We invite those devoted to ideas of
democracy to our Summit in Ukraine and to unite our efforts to turn the
Baltic-Black-Caspian Sea region into a sea of democracy, stability and
security, to make it a fully integrated region of Europe and of the
Democratic and Atlantic community.

Stating our intention to hold the Summit in autumn 2005, we are hereby
calling on all the Leaders of the region, who share our goals, to join us in
this celebration of Democratic Choice. We also invite the European Union
and Russia to attend this Summit as observers in order to examine the
ways in which this democratic region, as a close neighbor, can benefit the
security and stability on the entire continent. We invite the United States
as an observer and as a representative of the Community of Democracies.

In Ukraine, we offer to put a final end to the history of division in
Europe, of restricted freedoms and domination by force and by fear, and
mark a new beginning of neighborly relations based on mutual respect,
confidence, transparency and equality.

President of Ukraine Victor Yushchenko
President of Georgia Mikheil Saakashvili -30-
------------------------------------------------------------------------------------------------------------
LINK: http://www.civil.ge/eng/article.php?id=10542
=============================================================
3. GEORGIA, UKRAINE PUSH FOR NEW ALLIANCE

Misha Dzhindzhikhashvili, AP Online, Borjomi, Georgia, Sat, Aug 13, 2005

BORJOMI - Leaders of Ukraine and Georgia on Friday called for an alliance
that would champion democracy in the former Soviet lands _ a move likely to
anger Russian officials concerned about losing clout in the region.

Ukraine's Viktor Yushchenko and Georgia's Mikhail Saakashvili said in a
statement that the Commonwealth of Democratic Choice will become "a
powerful tool for freeing our region from the remaining divisive lines,
violations of human rights, any spirit of confrontation and frozen
conflicts."

"That will help usher in a new era of democracy, security, stability and
peace across Europe, from the Atlantic to the Caspian Sea," the leaders
said in a statement that followed their talks in Borjomi, a renowned
Georgian spa.

They said the new alliance would be inaugurated at a summit in Ukraine this
fall and invited the United States, the European Union and Russia to attend
it as observers. They said that the new grouping would unite democracies of
the Baltic, Black Sea and Caspian regions, but wouldn't elaborate which
specific nations could join.

The name of the new alliance is similar to the Russian-led Commonwealth
of Independent States - a loose alliance of 12 ex-Soviet nations - that
includes both Georgia and Ukraine.

The plan for a new alliance is likely to irritate the Kremlin, which has
viewed massive uprisings that recently toppled unpopular regimes in
Georgia, Ukraine and another ex-Soviet nation, Kyrgyzstan, as part of a
Western-guided effort to isolate and sideline Russia.

Asked whether the planned new grouping would strain their nations' ties with
Moscow, Yushchenko responded in a conciliatory manner, saying that he
wants to develop friendly ties with Russia.

Saakashvili made a veiled hint at Russia's imperial ambitions when he said
that a residence where he and Yushchenko met Friday had hosted members
of the Russian imperial family, Soviet dictator Josef Stalin and other
leaders of the Soviet empire.

"Even in their nightmares they couldn't have imagined that presidents of
independent Ukraine and Georgia would sign declarations here,"
Saakashvili said. -30- [The Action Ukraine Report Monitoring Service]
=============================================================
4. ARE UKRAINIANS SERIOUS ABOUT THEIR MEMORY?

ANALYSIS AND COMMENTARY: By R.L. Chomiak,
Ukrainian born American journalist now living in Kyiv
Published by The Action Ukraine Report (AUR), Number 541
Kyiv, Ukraine, Monday, August 15, 2005

KYIV -- Green with envy over the success of British writer Marina Lewycka
with her best seller "Short History of Tractors in Ukrainian," I am busily
gathering material for a copy-cat book, titled, "Short History of Famine
Memorials in Ukrainian."

There is no shortage of zigzags in this saga.

The latest: forget a memorial just to the victims of Stalin-planned famine
of 1932-33 that took up to ten million lives. Instead, let's have an
Institute of National Memory. To cover all the injustices to which
Ukrainians were subjected. Makes sense.

Except for a lingering questions: are Ukrainians serious this time?

Almost three years ago, Ukrainian diaspora, through Ukrainian World
Congress President Askold Lozynsky, proposed to fund a big monument
in Kyiv to the memory of the victims of the artificial famine, known in
Ukrainian as the holodomor. The monument that has been around since the
early 90's -- near St. Michael's Monastery and the Foreign Ministry -- the
disaporans felt wasn't impressive enough. (But it was very well located, and
dignified.)

Not another monument in Kyiv -- was the reaction of some people living here,
foremost among them, the late, ex-patriate American, Dr. James Mace, who
had been executive director of the congressionally-funded Ukraine Famine
Commission in the 1980's. He moved to Kyiv permanently in the early 90's
and worked here as a scholar and a journalist.

What Kyiv needs -- maintained Dr. Mace -- is not a monument to holodomor,
but a study and conference center, an archive, a museum -- like the
Holocaust Museum in Washington, to keep the memory of this great disaster
alive.

The upshot was to do both: a memorial center and a monument. For the next
two years at least three sites were proposed, and for various reasons set
aside (but mainly because of a lack of drive on the part of the authorities,
many of whom were part of the system that organized holodomor in the first
place).

At the end of 2004 Ukraine went through its world-famous Orange Revolution
and got a new government. For the first time since independence, the new
administration began to look seriously at restoring Ukraine's history,
obliterated by the Communist "internationalists" for decades.

Ukraine's lovable first president, Leonid Kravchuk, had been a high party
official in charge of ideology, i.e. in charge of obliterating Ukraine's
past. The second president, Leonid Kuchma, had been the head of USSR's
main rocket-building facility, with direct access to the top echelon of the
ruling Communist Party.

They both paid lip service to Ukrainian history, but they always had in the
back of their minds, what will our old party comrades say? What will the
Russians say?

Meanwhile, the Communist Party of Ukraine continued to deny the holodomor
-- 70 years after it occurred. A parliamentary hearing on declaring the
holodomor a genocide the Communists simply boycotted. Yet their views
have to count; they were duly elected to Ukrainian parliament.

The new administration, and President Yushchenko personally, began to act
on Ukraine's historic past. But that, of course, they had to do in addition
to taking care of emergencies, such as back pay for millions of workers and
working on a new realistic budget on the basis of squandered resources of
the last administration, and ceaseless pressure from Russia -- particularly
its media -- to make Ukraine look bad.

Early in July -- less than six months after being sworn in -- President
Yushchenko issued a decree to establish an Institute of National Memory.
And to locate it in downtown Kyiv. Land in downtown Kyiv goes for a pretty
penny these days, and there are enough developers willing to pay the price
to redo or demolish and build from scratch an income-producing structure.

Promoters of the Institute of National Memory were suggesting that the best
place to house the Institute would be what is known in Kyiv as the October
Palace. Interestingly, the final draft of the president's decree omitted
this concrete designation; it just stated that the location should be in
central Kyiv.

The October Palace, now known as the International Center of Culture,
originally was built in tsarist times as the Institute for Girls of
Nobility, and the street on which it is located has reverted to its old
name -- Institute Street. (In Soviet times it was called October Revolution
Street, and the building -- October Palace. For years -- until the grand
Ukraina Palace was built in the 1960's -- "October Palace" was the place
to hold big public events in Kyiv.

It is on a slope of one of Kyiv's many hills and overlooks the now famous
Maydan -- Independence Square. It has several auditoriums, includes a
modern movie theatre and offices leased to various foreign-owned
companies.

A couple of years ago a pedestrian bridge was built to take people from
a shopping mall across the busy Institute St. And there also is an "alley
of the stars" -- mimicking the one in Hollywood.

The reason promoters of the Institute of Memory would like to locate it in
the October Palace is that in the 1930's this building -- the former
finishing school for noble young women -- was the headquarters of the
Soviet secret police. People were kept in cells in the building's basement,
tortured and killed there. Perfect location for a memorial institute -- in
Budapest, or Warsaw, or Riga. But in Ukraine? Well... Let's give it some
thought.

Here's what Dr. Yuriy Shapoval says about this hesitation. He is a very
active scholar in uncovering the Communist deeds against Ukrainians in
Soviet times and he is one of those lobbying for locating the Institute of
Memory in the former "October Palace." In an article he wrote for July 27
Den' (The Day) newspaper, he concludes:

"You don't have to be a prophet to predict opposition to the idea of
an institute in Kyiv (and in the center of town, at that, as the
president's decree reads). This won't be an open opposition (with the
exception, perhaps of the pathologically left forces). This will be an
attempt to strangle this idea by way of "an embrace" -- lip service
for support, combined with sabotage in fact.

For example, already attempts are being made to block the idea of
putting the Institute in the October Palace -- the headquarters from
1934 to 1941 of NKVD of Ukrainian SSR, and where not only unjust
trials were held, but people were killed. (Leading to it is an "alley
of stars" created on no one knows whose orders.)

One also hears this argument: We have the Institute of History. Let's
give it the responsibility of preserving the memory. But the
responsibilities of the Academy of Sciences' Institute of History are
more fundamental, primarily academic.

The big discussions are still ahead of us, and they will intensify at
the beginning of the 'political' autumn. This will be a true test.
For the Government, for society, for everyone who doesn't want his
memory taken away. Without memory there will be no state in the
true sense of the word."

It didn't take long. The first "strangling embrace" of the idea to locate
the Institute of Memory in the "October Palace" appeared on August 2 --
less than a week after Shapoval's article -- in Kievskie vyedomosti, a daily
newspaper that is associated with the Social Democratic Party (united), or
SDPU(o) in its Ukrainian acronym.

Yes, the party headed by former President Kuchma's chief of staff Viktor
Medvedchuk, the party whose parliamentary leader is the loveable first
president, Kravchuk (although just days ago he said he would resign from
he leadership to devote all his time to "uniting Ukraine").

The paper assigned two writers to do a story on the October Palace site for
the Institute of Memory. They reported in detail about the president's
decree, they recalled that earlier he had said it was indecent to house an
entertainment center in a place where people were tortured and executed.
They quoted activists of the Memorial Society, who claim the building has
become a money laundering operation.

But then they switched to a "let's think about it" mode: "Is a busy
intersection in downtown the best place to preserve the memory of sorrowful
and tragic events? Or isn't better to locate such museums in the quiet of
large parks, where nature allows meditation on the fate of one's people and
the turns of history?" they asked. (Well, the Holocaust Museum in Washington
is doing fine at a very busy corner of 14th and Independence.)

They also shed crocodile tears over criticism of the "alley of the stars,"
naming half a dozen popular actors, athletes and singers whose stars are
embedded in the alley and asked, should these people apologize, because
their names are there?

And they also mentioned the fact that in addition to serving as the torture
chamber of the Soviet secret police, the building was the site of some
glorious events in the history of Ukraine: Mykola Lysenko, the foremost
Ukrainian composer of the 19th century, taught there, and among the alumni
of the Institute for Girls of Nobility was a famous opera singer.

And then the Kievskie vyedomosti writers went for the soft underbelly. The
Museum of the History of Kyiv lost its building last year. It was given to
the Supreme Court of Ukraine. The museum is still waiting for a decent
location. It's current quarters in the Ukrainian Home (former Lenin Museum)
is inadequate by all accounts.

So -- suggest the writers, Oksana Grishina and Valentina Simkovych of the
Kievskie vyedomosti: why not give the October Palace to the Museum of the
History of Kyiv, because "it's shameful that with such memory-oriented and
emotional government [the museum] remains homeless."

In other words -- anything but a museum of holodomor, of Soviet repressions.

Interestingly enough, about a year ago, when one of the sites proposed for
a holodomor center was the hill above the Ukrainian Home (former Lenin
Museum), Kievskie vyedomosti ran an article about unnamed investors,
who were interested in building a diorama there, like the one that Kievites
enjoyed visiting in tsarist times, and the first years of the Soviet rule.

And that's the way it is, in the capital of independent Ukraine, 14 years
after independence. And I'm not betting on a holodomor or a victims of
various repressions museum being built any time soon. -30-
-----------------------------------------------------------------------------------------------------------------
NOTE: R.L. Chomiak is an Ukrainian-born American journalist now living
in Kyiv and working as a correspondent for Svoboda, the 112-year-old
Ukrainian language newspaper published in New Jersey, USA. EDITOR
=============================================================
5. KYIV TO BUILD MEMORIAL TO VICTIMS OF POLITICAL
REPRESSIONS AND GREAT FAMINES BY 2007
Monument, museum and a park

Ukrainian News Agency, Kyiv, Ukraine, Mon, August 8, 2005

KYIV - The Kyiv City Administration has decided to build a memorial to
victims of political repressions and great famines by 2007.
Ukrainian News learned this from the press service of the Administration.

According to the directive, the memorial will consist of a monument, a
museum and a park called Kalynovyi Hai (Snowball Tree Grove).

The Administration has set up a working group with Kyiv mayor Oleksandr
Omelchenko at the head to prepare a concept of the memorial complex.

The group is to table the construction concept by September 30 and
develop an architectural solution before the end of the year. The
Directorate of Restoration and Reconstruction Works, a municipal
enterprise, was selected as construction owner.

The Institute of History of the National Science Academy will be also
involved in the project. Additionally, the Administration plans to organize
public hearings on the project concept.

As Ukrainian News earlier reported, President Viktor Yuschenko offered in
May to reorganize the Center for Culture and Arts situated on Instytutska
Street in Kyiv (formerly known as Zhovtnevyi Palace) into the museum of
victims of political repressions.

Yuschenko also suggested the Kyiv City Administration and the Kyiv City
Council to submit proposals for paying tribute to the memory of victims of
the 1932-1933 Great Famine in Ukraine. The president proposed to plant
snowball trees on one of Kyiv's hills to commemorate the famine victims.

The Kyiv City Administration extended UAH 6 million for the creation of a
memorial complex to famine and political repression victims.

The complex, including a scientific research center and a museum, will
open in the reconstructed uninhabited building at 4B Triokhsviatytelska
Street.

From three to seven million people perished during the 1932-1933 famine,
according to different estimates. Apart from that, a number of historians
say that Ukraine has lived through the famines of 1921-1923 and 1946-1947.
-----------------------------------------------------------------------------------------------------------
FOOTNOTE: It is difficult to understand why a national memorial complex
of this magnitude and importance would not be under the federal govern-
ment rather than the city of Kyiv but that is the way it seems to be. Can
you see the city of Washington, DC, or other such city, in charge of
designing, raising the funds, and administering the Holocaust Museum,
rather than the way it was done, or the new WWII memorial, or the Vietnam
Memorial or one of the Smithsonian Museums? Would be a real disaster.

The complex mentioned in the article above should be under the national
government of Ukraine not the city government of Kyiv. The millions who
died and the millions more who suffered came from all the regions of
Soviet Ukraine. What happened was a major national tragedy, not just a
tragedy for those who lived in Kyiv. EDITOR
=============================================================
6. THE HISTORY AND LEGACY OF THE GULAG
Davis Center for Russian and Eurasian Studies at Harvard Univ
Major International Conference, Harvard Unv, Oct 19-22, 2006

Call For Paper Proposals: The History and Legacy of the Gulag
Steven A. Barnes, The Center for History and New Media
George Mason University, Fairfax, Virginia, Fri, August 12, 2005

On October 19-22, 2006, the Davis Center for Russian and Eurasian
Studies at Harvard University with the generous support of the Bradley
Foundation will host a major international conference on the history
and legacy of the Gulag.

Topic areas are broad, and all proposals will be considered: history of
the Gulag (including camps, prisons and exile), economy of the Gulag,
literature of the Gulag, release and rehabilitation, the legacy of the Gulag
in the post-Stalin and post-Soviet periods, the dissident and human rights
movement in the Soviet Union, nationalities in the Gulag, the Gulag in
comparative perspective, etc.

Recent years have seen a burgeoning of scholarship on the Gulag, and
this conference will be an opportunity for many scholars from a variety of
disciplines to gather and share the results of that work.

The conference will be held in conjunction with the Boston run of a
traveling Gulag museum exhibit sponsored and created by the U.S.
National Park Service and the Gulag Museum, Perm, Russia. The
exhibit is scheduled to open at Ellis Island in Spring 2006 and will
subsequently travel to National Historic Sites in Boston, MA; Topeka,
KS; Independence, CA; Atlanta, GA; Hyde Park, NY and other possible
sites to be determined.

The conference will be a workshop format. All will be required to
circulate previously unpublished article length papers to all workshop
participants in advance, so that oral presentations may be limited in
favor of questions and discussion. All submissions will be considered
for publication of a conference volume.

A video feed of the conference will be streamed via internet and
preserved on the virtual web exhibit Gulag: Many Days, Many Lives
supported by a grant from the National Endowment for the Humanities
and under construction by Steven A. Barnes and the Center for History
and New Media at George Mason University.

Please send one-page paper abstracts by November 15, 2005 to:
Steven A. Barnes, Department of History and Art History
George Mason University, MS 3G1, Fairfax, VA 22030
E-mail to: sbarnes3@gmu.edu; 703-993-1247. -30-
=============================================================
7. AUSTRIA'S RAIFFEISEN BANK LOOKS EAST
Opportunities in Romania, unexpected difficulties encountered in Ukraine

By Haig Simonian in Zurich, Financial Times, London, UK, Aug 12 2005

Raiffeisen International said it planned further big acquisitions in central
and eastern Europe buoyed by the Euro 555m ($686m) raised from its
successful initial public offering this year. Reporting its first results
since February's IPO, the subsidiary of Austria's co-operative banks said
it was looking at a range of takeovers.

Herbert Stepic, chief executive, stressed there were opportunities in
Romania, where RI is one of 10 foreign banks bidding for Casa de Economii
si Consemnatiuni, a big retail bank put up for sale by the government this
month.

Other options included possibilities in the former Soviet Commonwealth of
Independent States, where western banks were still barely represented.

By contrast, Mr Stepic hinted RI had encountered unexpected difficulties in
its attempt to purchase Aval Bank, the second-largest in Ukraine. Initially
in exclusive negotiations, RI lost its advantage in May, as other banks
became aware of its plans after publication in the IPO prospectus.

The arrival of competition has complicated already difficult talks with
Aval's 40-odd shareholders, and left RI more cautious about the possible
result."We are optimistic. But the chances are 50:50. It is impossible today
to make any final judgment about the outcome of the negotiations," Mr Stepic
said.

The comments came as the bank, which has seen a 50 per cent share price
rise since flotation, reported a big increase in earnings for the first
half. Pre-tax profits jumped 58 per cent to Euro 273m from Euro173m, while
net earnings after minorities rose almost 92 per cent to Euro 186m.

Total assets, buoyed by strong business growth across the region, climbed
nearly 14 per cent to almost Euro 33bn. The bank now has 5.7m customers,
with the strong expansion coming in south-eastern Europe.

In the second quarter alone, client numbers increased by 350,000, indicating
the potential that has made central and eastern Europe so attractive for
foreign banks. "It has been a very promising first half of the year, and we
stick to our targets for 2007," Mr Stepic said. -30-
=============================================================
8. IFC MAKES ITS LARGEST INVESTMENT IN UKRAINE'S FINANCIAL
SECTOR WITH 450 MILLION SUBORDINATED LOAN TO AVAL BANK

International Finance Corporation (IFC), Kyiv, Ukraine, Thu, Aug 11, 2005

KIEV - The International Finance Corporation (IFC), the private sector arm
of the World Bank Group, signed agreement with Aval Bank, Ukraine's one
of the largest and locally owned banks, to provide up to $50 million in the
form of a Tier II qualifying subordinated loan.

This is IFC's second investment in Bank Aval and represents the IFC's
largest investment in the financial sector of Ukraine.

Edward Nassim, IFC Director for Central and Eastern Europe, noted, "This
investment represents IFC's strategy to support local banks and financial
institutions that adhere to international best practices. IFC's new
investment in AVAL is expected to further strengthen the bank's standing
among Ukrainian banks and set example for other to follow."

According to Jyrki Koskelo, IFC Director for Global Financial Markets, "IFC
welcomes the opportunity to support dynamic local financial institutions
that operate in transition economies and intends to work closely with AVAL
in supporting the implementation of its growth and diversification
strategies."

Oleksandr Derkach, Chairman of AVAL's Board, added, "We appreciate
IFC's support, which brings many advantages, including long-term financing,
needed tier II capital and access to international best practices, and we
would like to leverage this relationship for the long-term benefit of AVAL."

Bank AVAL was established in 1992 and is now the second largest bank in
Ukraine in terms of asset size. It operates as a full-service commercial
bank, offering corporate, SME and retail banking services through a branch
network of more than 1,400 outlets. AVAL has more than 214,000 corporate
clients and over 4 million private individuals.

The mission of IFC is to promote sustainable private sector investment in
transition economies, helping to reduce poverty and improve people's lives.
IFC finances private sector investments in the emerging markets, mobilizes
capital in the international financial markets, helps clients improve social
and environmental sustainability, and provides technical assistance and
advice to governments and businesses.

From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC's worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held for
participants in loan syndications.

Ukraine became a member of IFC in 1993. As of today, IFC has invested
$335 million in 18 projects. IFC significantly expanded its investment
program in Ukraine in 2003-2004, committing $72 million of investments in
the agribusiness, financial and general manufacturing sectors. IFC has also
been conducting an extensive advisory program in Ukraine since 1992.

IFC has contributed to privatization of small businesses and unfinished
construction sites and to land and mass privatization. Current donor-funded
programs offer advice on corporate governance, leasing, development of the
agribusiness sector, and seek to improve the business environment, and
promote the growth of small and medium enterprises. -30-
=============================================================
Send in names and e-mail addresses for the AUR distribution list.
=============================================================
9. WORLD'S LARGEST STEEL COMPANY MITTAL STEEL AND FRENCH
STEEL GROUP ARCELOR COMPETE FOR UKRAINIAN STEEL FIRM

Abstracted from Les Echos, France, Friday, August 12, 2005

FRANCE - French steel group Arcelor and the world's leading steel
company, Mittal Steel, are competing for a 93.02 per cent stake of the
largest steel company in the Ukraine, Krivorjstal. On Wednesday, the
Ukrainian government launched an invitation to tender for these shares.

The initial price has been set at $2bn (1.61bn euros). Interested parties
have until 17 October to submit their bids. Analysts have predicted that
the government could receive $3bn for Krivorjstal.

At the time of the initial privatisation of Krivorjstal, Mittal Steel
offered the Ukrainian government $1.5bn for the firm, with another, much
lower bid coming from someone close to power ($800m). However, this
privatisation was annulled after the Orange Revolution which toppled the
government from power in November last year. -30-
=============================================================
10. GOVERNMENT COMPANY KHLIB UKRAINY TO EXPORT OVER 3
MILLION TONS OF GRAIN HARVESTED IN 2005
Khlib Ukrainy working in direct competition with the private grain industry

Ukrainian News Agency, Kyiv, Ukraine, Thu, August 11, 2005

KYIV - The Khlib Ukrainy state [state-owned] joint-stock company plans to
export more than 3 million tons of grain harvested in 2005. Serhii
Khoroshailov, the chairman of Khlib Ukrainy's management board,
disclosed this to journalists.

He noted that the company has already concluded contracts for the export
of 2.3 million tons of grain, and coordination on the terms of the contracts
is taking place for nearly 1 million tons more. Wheat of the fourth quality
grade, feed wheat and barley will be exported.

A contract has now been concluded for the export of 2 million tons of grain
to Israel, and small consignments are to be exported based on contracts to
Japan, Libya and Iran. Khlib Ukrainy plans to dispatch 2 ships with 30,000
and 50,000 tons to Israel by the end of August.

Based on the contracts Khlib Ukrainy has already bought nearly 100,000
tons of grain for export. As Ukrainian News earlier reported, Khlib Ukrainy
announced plans in early July to export 2.5 million tons of grain harvested
in 2005.

The Cabinet of Ministers forecasts export of grain in the 2005/2006
marketing year at the level of 10-11 million tons, whereas the Agricultural
Policy Ministry says grain export will be at the level of 10-12 million tons
and the Ukrainian Grain Association predicts export at the level of 12
million tons.

Khlib Ukrainy was created in 1996 and it is made up of 105 enterprises of
the grain procurement system. Khlib Ukrainy's facilities are designed to
keep 7 million tons and process 4 million tons of grain. The company also
owns two port grain storages (Odesa and Mykolaiv). -30-
=============================================================
11. PM TYMOSHENKO DEMANDING REGIONAL GOVERNMENT ORG
START BUYING SUGAR FROM STATE RESERVES

Ukrainian News Agency, Kyiv, Ukraine, Thu, August 11, 2005

KYIV- Prime Minister Yulia Tymoshenko is demanding from the leaders of
the regional state administrations to immediately begin to buy sugar from
the State Committee for Material Reserve of Ukraine. She made this
demand during a conference call.

She said that the State Material Reserve Committee is ready starting from
Thursday to dispatch 12,000 tons of sugar and it will dispatch 4,000 tons of
sugar daily from August 12. "The work has practically not been set up...if
you are not capable of doing this, then I [should I] will put on the robe
and deal with domestic issues...hire cars and deliver sugar?" Tymoshenko
said.

State Material Reserve Committee Chairman Viktor Boiko said that sugar
would be sold to the regions at a price of UAH 2.80 for kilogram
"Do it in such a way so that work would start as of tomorrow," Tymoshenko
appealed to the heads of the regional administrations. In Boiko's words, the
sugar price of UAH 2.80 for kilogram will make it possible for the retail
price of sugar to settle at the level of UAH 3.20-3.30 for kilogram.

Boiko informed that the State Material Reserve Committee plans to supply the
following volumes of sugar to the regions: Ivano-Frankivsk - UAH 2,230 tons,
Khmelnytskyi - 2,230 tons, Zaporizhia - 3,000 tons, Dnipropetrovsk - 5,620
tons, Donetsk - 7,550 tons, Odesa - 3,930 tons, Mykolaiv - 3,000 tons,
Kherson - 1,850 tons, Sevastopol - 620 tons, Kyiv - 4,460 tons, Kyiv
region - 2,850 tons, Cherkasy - 2,170 tons, Rivne - 1,850 tons, Vinnytsia -
2,770, Ternopil - 1,770 tons, Poltava - 2,500 tons, Chernihiv - 1,930 tons,
Luhansk - 3,930 tons, Chernivtsi - 1,460 tons, Volyn - 1,690 tons, Crimea -
3,830 tons, Zakarpattia region - 2,000 tons, Lviv - 4,160 tons, Zhytomyr -
2,160 tons, Kirovohrad - 1,690 tons, Kharkiv - 4,620 tons and Sumy - 2,000.

The sugar will be delivered to 7 mills, which are situated in the Odesa,
Mykolaiv, Vinnytsia and Kyiv regions. Responding to a question of Ukrainian
News about how much sugar in all will be used for stabilization of sugar
prices, Tymoshenko said that the sugar will come onto the market in ample
proportion and in such volume so as to create a market price and not to harm
the local agricultural producer.

She did not specify the volumes. "I cannot say how much [sugar will come
onto the market], exactly how much so as to make a market price,"
Tymoshenko said.

As Ukrainian News earlier reported, Tymoshenko instructed the Agricultural
Policy Ministry to determine the timeframes and volume of purchasing sugar
produced from the sugar beet harvest of 2005 by the State Material Reserve
Committee.

According to the Cabinet of Ministers, the sugar price in the Crimea is now
reaching UAH 6.00-7.00 for kilogram, whereas the average price throughout
the Mykolaiv region is UAH 5.35 for kilogram and the lowest price is in the
Kherson region - UAH 4.20 for kilogram. -30-
=============================================================
12. PM TYMOSHENKO DEMANDS REGIONAL LEADERS IMPROVE
COLLECTION OF TAXES FOR THE STATE BUDGET

Ukrainian News Agency, Kyiv, Ukraine, Thu, August 11, 2005

KYIV - Prime Minister Yulia Tymoshenko demands that heads of state
regional administrations improve collection of taxes for the state budget.
Tymoshenko voiced her demand during a conference call. She said only
nine regions met the plan for collection of taxes into the general fund of
the state budget in the first seven months of this year.

The nine regions are Luhansk (which met the plan target 129.7%)
Dnipropetrovsk region (123.2%), Kyiv city (120.7%), Cherkasy region
(119.9%), Kharkiv region (117.8%), Zhytomyr region (109.1%), Lviv region
(113%), Donetsk region (101.5%), and Kirovohrad region (101.1%). The
rest of the regions failed to meet the plan.

The worst performance was reported for Rivne and Mykolaiv regions (67%),
Volyn (71.3%), Sevastopol (75.2%), Ternopil and Sumy (79%), Odesa
(75.3%), Kyiv region (75.5%), Zakarpattia (82.2%), and Zaporizhia (89.3%).
"I won't let you fail the budget, no way," Tymoshenko said.

The prime minister calls heads of regions for a meeting to report on the
eight months' implementation of the budget, and those regions that fail to
meet the target must replace the heads of tax agencies. Regional governors
are still the first ones responsible for implementation of the budget, she
added.

As Ukrainian News earlier reported, President Viktor Yuschenko criticized
the State Tax Administration for insufficient staff changes in a number of
regions and slammed STA for poor work of its lawyers in courts. In the end
of June, Yuschenko criticized the Ministry of Internal Affairs, the State
Tax Service and the State Tax Administration for lack of significant
improvements in their work. In January-July, revenues of the general fund of
the state budget totaled UAH 44,520.2 million, or 106.9% of the plan.

The general fund of the 2005 state budget provides for revenues totaling UAH
81,111 million and expenditures totaling UAH 88,835 million.
The parliament amended the national budget for 2005 in March, increasing the
budget's projected revenues from UAH 86.5 billion to UAH 106.135 billion and
its projected expenditures from UAH 95.5 billion to UAH 114.081 billion and
reducing its projected deficit from UAH 8.6 billion to UAH 7.053 billion.
=============================================================
FOOT NOTE: PM Tymoshenko demands governmental leaders buy and
sell sugar, buy and export grain, buy and sell fuel, run around and just
suddenly collect more taxes for the budget. All of this sounds and looks
very socialistic, autocratic and dictatorial. Very little, if any, of this
sounds or looks like what the Orange Revolution was about. Editor
=============================================================
13. UKRAINIAN SPEAKER LYTVYN SAYS NEW GOVERNMENT IN CRISIS
New administration is in the middle of a management crisis

UT1, Kiev, in Ukrainian 1800 gmt 12 Aug 05
BBC Monitoring Service, UK, in English, Fri, Aug 12, 2005

KYIV - [Presenter] Ukraine has plenty of domestic problems on its hands and,
therefore, the authorities' efforts to focus on foreign policy are at odds
with national interests, speaker Volodymyr Lytvyn said during a working trip
to Kherson Region.

Lytvyn believes that the new administration is in the middle of a management
crisis. Compared with last year, GDP has plunged by 60 per cent [as heard,
presumably the GDP growth rate]. According to the speaker, people who have
come to power are pursuing their own policy and are competing with the
president in determining both foreign and domestic policy lines.

[Lytvyn, speaking from rostrum] We see a mass personnel reshuffle. In many
cases, people who have come to power on various rungs are trying to work out
their own policy. They go as far as compete with the president in
determining policies - domestic and foreign alike - instead of implementing
a consistent policy. -30- [Action Ukraine Report Monitoring Service]
=============================================================
Send in a letter-to-the-editor today. Let us hear from you.
=============================================================
14. THE MYTH OF UKRAINE'S "THIRD FORCE" IN PARLIAMENT

COMMENTARY AND ANALYSIS: By Taras Kuzio
Eurasia Daily Monitor, Jamestown Foundation
Washington, D.C., Friday, August 12, 2005

Parliamentary speaker Volodymyr Lytvyn has made another trip to Moscow
on August 1 to seek political support for the March 2006 parliamentary
election (Ukrayinska pravda, August 1). But the choice is limited and
it is not clear with whom Lytvyn's People's Party of Ukraine (NPU)
would cooperate in Russia.

Russian President Vladimir's Putin's Unified Russia party has already
signed a cooperation agreement with defeated presidential candidate
Viktor Yanukovych's Regions of Ukraine party. Russia's Rodina party
has agreed to cooperate with the Socialist Party of Ukraine, while
Russia's and Ukraine's Communists are eternal allies.

Since Yushchenko's election in late 2004, the pro-Leonid Kuchma
centrist camp has disintegrated into a hard-line anti-Yushchenko core
of 71 deputies and a larger group of 86 "third force" MPs willing to
cooperate with Yushchenko. The hard-line, anti-Yushchenko
parliamentary opposition includes Regions of Ukraine (51), the Social
Democratic Party-United (SDPUo [20]), and the Communist Party (56).

The former Kuchma camp has, in effect, divided into two groups. The
hard-core opposition draws on two of Ukraine's three oligarchic clans:
Kyiv (SDPUo) and Donetsk (Regions of Ukraine).

The third clan, based in Dnipropetrovsk, has disintegrated into two
warring factions. Viktor Pinchuk's Interpipe group supported
Yanukovych's candidacy, while the Pryvat group indirectly backed
Viktor Yushchenko. Since Yushchenko's victory, Pryvat has aligned with
Prime Minister Yulia Tymoshenko, herself a dissident oligarch from
Dnipropetrovsk.

Another key group to emerge from the Kuchma camp consists of centrist
third-force parties that are not fronts for large regional clans. These
"third-
force centrists have tended to seek accommodation with Yushchenko,
rather than join the hard-line opposition.

Since Yushchenko became president, the main parliamentary group to
gain strength is comprised of former members of the Kuchma camp.
Lytvyn's NPU faction has grown from 14 deputies to 46, making it the
fourth-largest faction in parliament. United Ukraine (20) and
Democratic Ukraine (19) are also composed of third-force members
from the Kuchma camp. Democratic Ukraine is allied to Lytvyn, giving
him indirect control over 66 of the 86 third-force deputies.

Other moderate pro-Kuchma factions have disappeared after their
faction sizes declined below the minimum 14 deputies. These include
former Prime Minister Valeriy Pustovoitenko's People's Democratic
Party (NDP), the Kharkiv group's Democratic Initiatives led by Stepan
Havrysh (Yanukovych's representative in the Central Election
Commission), and the former Dnipropetrovsk oligarchic clan's Labor
Ukraine (TU).

This group now holds the balance of power in parliament, but their
influence will likely end after the 2006 election because of three
factors.

First, their public support outside parliament is very low. A third
force election bloc composed of the NDP, TU, and NPU may not cross
the low 3% threshold to enter parliament. Some third-force parliamentary
factions have no political parties outside parliament (i.e. Democratic
Initiatives, Democratic Ukraine, United Ukraine). None of these
parties has a strong regional base and without links to oligarchs or
the ruling regime they also have fewer financial resources.

Second, the term "third force" is in reality a misnomer. The only
difference between them and the hard-line centrist opposition Regions
of Ukraine and SDPUo is that the latter two have unequivocally stated
their opposition. Instead, the third-force parties are trying to be
both in opposition and on good terms with the authorities, a difficult
position to maintain.

Prime Minister Tymoshenko advised these parties to get of the fence.
"If you are part of the authorities, then there is no need to shoot us
in the back," Tymoshenko said, referring to their unwillingness to
back much-needed WTO legislation this spring (Zerkalo Nedeli/Tyzhnia,
July 16).

Third, many leading members of the third-force parties played
prominent roles in the Kuchma administration. Their link to the Kuchma
era has led Tymoshenko and many in Our Ukraine to oppose aligning
with them in the 2006 election.

The NDP, for example, was Kuchma's first party of power in 1998, and
NDP leader Pustovoitenko was coordinator for the political parties
that backed Yanukovych in the 2004 election.

Criminal charges have been launched against high-ranking NDP member
Anatoliy Tolstoukhov and Dmytro Tabachnyk (Labor), deputy prime
minister and secretary to the Yanukovych government, for abuse of
office. On November 25, 2004, in defiance of a Supreme Court ruling
the day before, the two men ordered two official newspapers to publish
the official election tally showing that Yanukovych had been elected
president (Ukrayinska pravda, August 3).

Labor Ukraine's (TU) former leader Tyhipko was the head of
Yanukovych's election campaign. Ihor Sharov, head of the Democratic
Ukraine parliamentary faction, was Tyhipko's deputy in the Yanukovych
campaign.

TU's new deputy leader, Volodymyr Sivkovych, is remembered by the
Yushchenko camp as the head of the parliamentary committee to
investigate Yushchenko's near fatal poisoning in September 2004.
Sivkovych discredited himself by continually rejecting the conclusion
that Yushchenko had been poisoned, despite overwhelming evidence
to the contrary.

Tymoshenko's demand that Yushchenko exclude Lytvyn from the 2006
election alliance (EDM, August 3) will marginalize this third-force
grouping. Lytvyn's marginalization from the Yushchenko camp will leave
him exposed to criminal charges as head of the presidential
administration during the worst period of Kuchma's rule in 1996-2002.

Lytvyn is particularly vulnerable to further incriminating details
related to the murder of opposition journalist Heorhiy Gongadze in
fall 2000. Myroslava Gongadze and Mykola Melnychenko, the presidential
guard who illicitly taped Kuchma's office, are both convinced that
Lytvyn lobbied Kuchma to order then Interior Minister Yuriy Kravchenko
to deal harshly with Gongadze.

Prosecutor Sviatyslav Piskun has announced that the Gongadze case will
go to trial in August-September (Ukrayinska pravda, August 2, 3). The
executioners, the policemen who undertook the murder, will face
prosecution at this time.

The next stage of the investigation will target the plotters. If Lytvyn is
implicated as one of the organizers, the "third force" will become a
finished force. -30- [The Action Ukraine Report Monitoring Service]
---------------------------------------------------------------------------------------------------------
http://jamestown.org/edm/article.php?article_id=2370146
=============================================================
15. NEW KYRGYZ PRESIDENT BAKIYEV PLEDGES A CLEAN STATE
[Ukraine represented by Foreign Minister Borys Tarasyuk]

Reuters, Bishkek, Kyrgyzstan, Monday, Aug 15, 2005

BISHKEK, Kyrgyzstan - The country's new president took office on Sunday,
pledging to stamp out corruption in the impoverished state.

President Kurmanbek Bakiyev was sworn in on the main square of Bishkek,
the capital, after winning nearly 90 percent of the vote last month in an
election to find a successor to President Askar Akayev, ousted during
protests and a coup in March.

"We will eradicate the system of corruption in our country and drive the
economy out of the shadows," Bakiyev said during a short speech to the
crowd of more than 10,000 people. "We have demonstrated to the whole
world that we are a nation capable of defending democracy."

Kyrgyzstan, a mountainous state on China's border, is the first of the five
Central Asian former Soviet republics to install a new leader in an
election.

Three of the other four states - Kazakhstan, Uzbekistan and Turkmenistan -
are still ruled by their Communist-era rulers. In the fourth, Tajikistan,
President Emomali Rakhmonov came to power in 1992 at the beginning
of a five-year civil war.

Bakiyev, 56, has been the acting president since Akayev fled the country
and now faces the challenge of forming a government in which many
opponents of the former president expect places in return for supporting
the protests that helped topple him.

Bakiyev, once a prime minister under Akayev before joining the opposition,
has led an interim government that has been criticized for cronyism, and his
anticorruption drive has been accused of focusing solely on Akayev and his
supporters.

But the election that he won on July 11 "generally respected" civil and
political rights and took the country a step closer to meeting international
democratic standards, according to monitors from the Organization for
Security and Cooperation in Europe.

Some of Bakiyev's supporters have sought to draw parallels between
Akayev's ouster - prompted by protests against a flawed parliamentary vote
- and mass demonstrations, dubbed "bloodless revolutions," in Georgia in
2003 and Ukraine last year that swept longtime leaders from power.

The Kyrgyz protests were much smaller than those in Ukraine and Georgia
and in some cases involved violence, but they reflected widespread
dissatisfaction with alleged corruption in Akayev's government. His removal
from office made the leaders of neighboring states nervous.

Kazakhstan, the richest and most economically advanced of the Central Asian
states, may hold a presidential election in December and has cracked down
on dissent in recent months, banning an opposition party and newspaper.

The authorities in Uzbekistan suppressed an uprising in the eastern town of
Andijon in May, killing hundreds of people, according to witnesses. Uzbek
officials said 187 people had been killed in a police action against
"terrorists." -30- [The Action Ukraine Report (AUR) Monitoring Service]
=============================================================
16. UKRAINE READY TO MAKE SEVERAL PROPOSALS ON REFORMING
COMMONWEALTH OF INDEPENDENT STATES AT SUMMIT MTG

ITAR- TASS, Bishkek, Kyrgyzstan, Sunday, Aug 14, 2005

BISHKEK - Ukraine is ready to make several proposals on reforming the
Commonwealth of Independent States when presidents of the member-countries
gather for a summit meeting in the Russian city of Kazan at the end of this
month, Ukrainian Foreign Minister Boris Tarassiuk, now visiting Kyrgyzstan,
said Sunday.

"Over the 14 years of its history, the CIS has shown its inefficiency," he
said. Ukraine has drafted a number of proposals that, according to
Tarassiuk, have a bearing on problems found in all countries of the CIS.
Those proposals concern, among other things, the social sphere and illegal
migration that victimizes the CIS at large and not only Ukraine, he said.
=============================================================
17. UKRAINIAN CANADIAN CONGRESS (UCC) TO RECEIVE GOVERNOR
GENERAL OF CANADA COMMENDATION FOR ITS ROLE IN
UKRAINE'S PRESIDENTIAL ELECTIONS IN 2004

Ukrainian Canadian Congress (UCC)
Winnipeg, Manitoba, Canada, Monday, Aug 15, 2005

The Ukrainian Canadian Congress (UCC) will be honoured by the Governor
General of Canada, Her Excellency the Right Honourable Adrienne Clarkson,
with a Certificate of Commendation.

This singular honour will be bestowed on the UCC for its role in organizing
a mission involving 500 observers for the re-run of the Presidential
election in Ukraine which took place in December of 2004 as well as 140
observers for the two previous rounds in October and November 2004.

The Commendation reads, in part, The effort undertaken by the Ukrainian
Canadian Congress to raise funds, recruit observers, and mobilize and train
the participants was unprecedented and is testament to the energy,
dedication, and ideals of all those who took part in the mission.

According to officials from Rideau Hall, this is only the second such non-
military commendation that Her Excellency has issued during her term in
office.

UCC President Irene (Orysia) Sushko stated that, The UCC is deeply
honoured to be recognized by Her Excellency for its efforts in assuring that
the Presidential elections in Ukraine were fair and transparent and
reflected the will of the Ukrainian people.

Canadians from all walks of life rallied together as never before to
demonstrate their love of freedom, which they as citizens cherish. It is a
reflection of the dedication to Canadian values of democracy and fairness
that our community volunteers were able to organize such a monumental
effort.

Canada is blessed with very generous, dedicated and charitable people
who volunteered their expertise and donated though both charitable
donations and personally to fund their own travel costs to Ukraine in order
to contribute to democracy and the development of a civil society in
Ukraine.

The UCC is pleased to accept this Commendation on behalf of the
thousands of volunteers and donors that made these missions possible.

Ms. Sushko will receive the Certificate of Commendation on behalf of the
Ukrainian Canadian community from Governor General Clarkson at a
special ceremony to be held in Edmonton on August 31st, 2005. Details
of this public event will be made available as they are finalised. -30-
--------------------------------------------------------------------------------------------------------------
CONTACT: Ostap Skrypnyk, Executive Director, Ukrainian Canadian
Congress (UCC); Tel: (204) 942-4627, Fax: (204) 947-3882,
E-mail: ostap.skrypnyk@ucc.ca; Web; www.ucc.ca
==============================================================
18. UKRAINE'S YURIY KRYMARENKO CLAIMS SURPRISE VICTORY IN
MEN'S HIGH JUMP AT WORLD CHAMPIONSHIPS IN HELSINKI

Reuters, Helsinki, Finland, Monday, August 15, 2005

HELSINKI , Aug 14 - Ukraine's Yuriy Krymarenko claimed a surprise victory in
the men's high jump at the world championships on Sunday with the last jump
of the night. Krymarenko cleared 2.32 to take gold ahead of Victor Moya of
Cuba and Yaroslav Rybakov of Russia, who shared second place with identical
records after clearing 2.29.

Olympic champion Stefan Holm, the favourite for gold, was a disappointing
seventh with 2.29 on his second attempt. The Swede, three-time world indoor
champion, has yet to win a world outdoor gold after taking silver in 2003.

Rybakov and Moya shared the lead until the Ukrainian, who was the last man
to jump on a clear night in the capital, cleared 2.32, just one centimetre
below his personal best. His winning height equalled the lowest in a world
final set by Gennady Avdyeyenko of the Soviet Union at the inaugural
championships in Finland in 1983, the year Krymarenko was born. Defending
champion Jacques Freitag of South Africa did not qualify for the final. -30-
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=============================================================
19. UKRAINIAN DANCING TROUPE IN FOLKFARO, PORTUGAL, FESTIVAL
Award winning group from Podilsky, Ukraine

The Resident, Weekly Algarve Edition, Portugal, Thu, Aug 11, 2005

FARO, Portugal - A UKRAINIAN dancing troupe has been invited to take
part in the third FolkFaro, a folk festival taking place in the Algarve's
capital from August 20 to 28.

DIM, a dancing group from the city of Podilsky in Ukraine, will bring a
little of their country's culture to the Algarve, while also making the
region's estimated 17,000 Ukrainian residents feel like they are at home.

The award winning troupe was first formed in 1959 and has taken part in
many international folk festivals in countries such as France, Italy,
Germany, Lithuania, Poland and Bulgaria. Composed of 20 dancers and
10 musicians, the group will be performing traditional Ukrainian dances,
songs and music, accompanied by the sound of accordions, flutes,
clarinets, the double bass and trombone.

The Ukrainian Ambassador to Portugal is clearly very pleased about the
troupe's visit, commenting: "Cultural exchanges are very important and,
with folklore, a bridge can be built between various peoples, serving to
demonstrate the diversity of cultures."

Taking place at Faro's new municipal theatre, a further seven groups are
expected to participate in FolkFaro, a festival which is part of the
programme for Faro National Capital of Culture 2005. -30-
------------------------------------------------------------------------------------------------------------
http://portugalresident.com/portugalresident/showstory.asp?ID=9015
=============================================================
20. TARAS SHEVCHENKO SCHOOL OF UKRAINIAN STUDIES
Registration for the 2005-2006 School Year, Wash, D.C.

Taras Shevchenko School of Ukrainian Studies, Wash, Mon, Aug 15, 2005

WASHINGTON, D.C. - On Saturday, September 10, 2005, the Taras
Shevchenko School of Ukrainian Studies will hold registration for the
2005-06 school year and celebrate Moleben starting at 9 a.m. at the
Ukrainian Catholic National Shrine of the Holy Family, located at 4250
Harewood Rd., NE, Washington, D.C. 20017.

Parents will have an opportunity to speak with the director of the school,
Theodore Caryk, and to meet with teachers. Books for the upcoming
school year will be sold at this time only.

The Taras Shevchenko School of Ukrainian Studies is a cultural school
that offers a program of study in Ukrainian language and culture for
children from Kindergarten (age 5) through Grade 11.

Ukrainian as a Second Language is being offered and will be divided into
wo groups, preliminary and advanced. A pre-school class is also held for
children age 3-5. Classes for the upcoming school year will begin the
following Saturday, September 17th, promptly at 9 a.m. at Westland
Middle School, located at 5511 Massachusetts Avenue, in Bethesda, MD.

For further details, please contact either Theodore Caryk, (301) 840-1713,
or Roman Ponos, (703) 867-6847. Please contact Zirka Harabatch, (301)
916-0978, regarding pre-school. Additional information can be found on
the school website, http://www.ukieschool.org. Individuals interested in
teaching should contact Mr. Caryk or Mr. Ponos. -30-
=============================================================
21. E-BOOK: UKRAINIAN REFERENCE GRAMMAR IN ENGLISH

Ukrainian Multimedia, Interactive Learning and Digital Publishing
The Ukrainian Language and Literature Program
University of Alberta, Department of Modern Languages
& Cultural Studies, Edmonton, Alberta, Canada, Mon, Aug 15, 2005

EDMONTON - We're pleased to announce the immediate availability of
Andrij Hornjatkevyc's, Ukrainian Reference Grammar in English

This book is a 329-page "read only" PDF file with hyperlinked subject index
and table of contents, as well as hyperlinked cross-reference within the
text. Finding information and navigating the book is just a click away.

For ordering information, downloadable TOC, subject index and preface visit:
http://www.arts.ualberta.ca/~ukraina/Homepage.html
http://www.arts.ualberta.ca/%7eukraina/NewMultiMediaSite/About_URGE.html

Ukrainian Multimedia, Interactive Learning and Digital Publishing (UMMILDP)
The Ukrainian Language and Literature Program
University of Alberta, Department of Modern Languages & Cultural Studies
200 Arts Building, Edmonton, Alberta, T6G 2E6 Canada
ummildp@ualberta.ca; http://www.arts.ualberta.ca/~ukraina/Homepage.html
=============================================================
22. REVOLUTION INDUSTRY, PHASE 2:
UKRAINE'S SUMMER OF DISCONTENT

COMMENTARY AND ANALYSIS: by Christopher Deliso
Balkan-based Journalist, Travel Writer and Critic
AntiWar.com, Redwood City, California, Fri, August 12, 2005

I deliberately did not write anything about Ukraine's "Orange Revolution"
when it was going down 10 months ago. Really, what to say? Everything
about it was so depressingly predictable that there was nothing left to the
imagination: the student protests, the staged rock concerts, the
proliferation of colors and slogans, the shocking scandals, the corruption
charges, the elections that weren't "free and fair" according to Western
standards.

You knew well who would win - the pro-democracy, pro-free-market
reformers - and if it was just like a bad Hollywood movie it's because
that's what it was: scripted, funded and produced in America.

There was further little need to write anything because the mass media,
usually asleep at the wheel, could not completely avoid - finally - the
obvious similarities between Ukraine and its Serbian and Georgian
revolutionary precedents. It was not as if such reports would change
anything, because the government-friendly media was by and large won
over by the citrine revolutionaries and their ostensible cause.

The Orange Revolution, like its predecessors, was a non-event. It proves
once again the old thesis of Jean Baudrillard regarding the modern world's
tendency towards simulation and the precession of events by information, in
which the story precedes and in fact creates the event.

Since such a theory would mean the death of journalism, journalism
accordingly had to fight to prove its undiminished vigor. A massive Western
media and PR bombardment perpetuated the fraud, gearing up before the
Ukrainian election, as a sort of "softening up" campaign meant to instill an
advance understanding in the global audience of who was good, who was
bad, and what it all meant for freedom and democracy, and to deliver such
a blow that the opponents of these could not possibly recover.

Such a campaign followed predictably the strategy used in Serbia and
Georgia. Devised by well-paid foreign lobbyists, human rights activists,
indigenous politicians and other quasi-officials, this tactic succeeded due
to the sheer and unrelenting information overload it created.

At the same time it revealed a deep-seated contempt for the intelligence
of the average Western citizen, as well as for the imaginations of those
foreign puppets tasked with performing their appointed roles before the
eyes of the world audience.

If that were all, and that's where the story ended, it would be depressing
enough, but at least we would have some closure. Not so. Since nothing is
ever over, even things devoid of any real and singular existence, the whole
revolutionary drama continues - long after the dust has settled on election
day, or after the palace has been cleared up after the coup - ineluctably to
its second phase.

SOME POST-REVOLUTIONARY RECAPS
Needless to say, there is a gamble involved in any such adventure, primarily
for those who seek to gain most through it - i.e., the power-mad politicians
who feign love of their country and citizens in order to seize absolute
power for themselves. For them, the day after the revolution ends, there
begins the roller-coaster ride in which all manner of unpredictable things -
even up to their own ouster - can occur. At every moment, they are reminded
that the (American) Kingmaker is in fact King; he who giveth can taketh
away.

Now, with three revolutions under our belts over the past five years
(Kyrgyzstan got a little too messy to fit the mold) this phase of the media
event is well-attested. Kostunica, Western darling when it was time to oust
Milosevic in Serbia, has ever since been harangued by the West for
everything from non-compliance with the Hague to his policy on Kosovo.

In Georgia, Mikheil Saakashvili was allegedly told to rein it in when he
practically declared war on Russia last summer, proving that even American
patronage has its limits. And the new outburst of public dissent and
opposition to his rule - ironically enough, from rivals latching on to the
same "freedom and democracy" mantra he successfully used to overthrow
Shevardnadze - has both embarrassed "Mishka" and prompted him to new
levels of authoritarianism. Since politics is always cyclical, the seeds of
a new revolution may already have been planted.

Although it has had a much shorter incubation period than its predecessors
in Belgrade and Tbilisi, the Ukrainian Orange Revolution is showing signs of
being by far the most grotesque. The same post-revolutionary malaise has
set in, and at this stage it is more worthwhile to write about, considering
that a certain humor value has finally established itself in Kiev, whereas
there is nothing funny at all about the states of either Serbia or Georgia.

REVOLUTIONARY ACTORS AND OUTCOMES
While short-sighted politicians latch on to the rhetoric to enrich
themselves quickly, the people who are really left untouched by the
post-revolutionary traumas and public malcontent are the less famous
employees of Revolution Industry - the students, activists, NGO
leaders-turned-consultants, whose entire job portfolio is creating ferment
for revolutions which, since they claim to be in support of universal
values, can be exported globally, duplicated like CDs, ad infinitum.

However, since the implementation of these allegedly universal values
requires stripping them to the lowest common denominator, precious little
real "democracy" and "human rights" can be successfully delivered. If a
doctor gives a sick man half of the necessary dose of medicine and, when
he gets sicker, repeats the process, no one can say that he didn't give the
patient medicine; technically, at least, the doctor didn't do anything
wrong, and the process must go on until the patient vegetates in the same
state, dies - or changes his practitioner.

It is too early to tell what will happen in the post-revolutionary countries
of the east, but at least there is a certain paradigm established. Serbia by
all accounts has continued to vegetate; Georgia, if it keeps provoking its
neighbors and internal ethnic minorities under Saakashvili's brand of
human rights and democracy, might end up dying.

And then there's Iraq, whose "red revolution" (as in blood red) has been
much less scripted and much more spectacular. There it looks like the
patient is changing doctor and will come out of it one-hundred percent
better - as an Islamic state ruled by Sharia law - a non-revolution turned
from red to green.

What, then, of Ukraine, where the precession of events achieved its
vertiginous climax? (Really it was the most spectacular revolution so far,
like how the Olympics get more lavish and more expensive every time).

As could be expected, images were everything. So even if his German doctor
stated that Viktor Yushchenko was not actually poisoned, could his horribly
pockmarked face and vertigo point to any other conclusion? And as for his
right-hand collaborator, Yulia Tymoshenko, how could this super-rich tycoon
not be a woman of the people, what with that knotted loaf of peasant bread
hairstyle?

LET THE BRANDING BEGIN!
Even if the Orange Revolution has since turned red (As in Soviet red)
preserving its nostalgic remembrance means that it requires safeguarding.
This, of course, is obviously why the Orange brand was quietly given to the
playboy teenage son of President Yushchenko for safekeeping: ".Local media
said the revolutionary slogan 'Tak!' (Yes) and a downward-facing horseshoe
symbol were now registered trademarks owned by [Yushchenko's] 19-year-
old son, Andriy.

"The President's eldest son, Andriy has been under media scrutiny after the
internet newspaper Ukrainska Pravda publicized his high-stepping lifestyle.
"Andriy, a university student, says he has a part-time job that enables him
to rent a BMW and a spacious Kiev city centre flat, pay for a personal
bodyguard and hang out in chic restaurants, nightclubs and casinos."

Kommersant newspaper adds: ".the Orange theme is widely used till now
and Orange goods cost pretty [large amount of] money. For example
Orange flag with slogan 'Tak!' costs from 5 to 20 UAH ($1-4) - it is 10% of
[the] average Ukrainian pension. So, if an old man decides to present ten
[of] his old friends with such flags he must spend all his monthly income
given by the state.

"Experts puzzle to fix definitely an income from the copyright but they
state that it is pretty big money. According to Yuri Kogutyak, the
co-founder of advertisement holding Euro RSGG& Partners, the brands of
Yushchenko's campaign cost about $100 million."

Yushchenko's yes-men defended the deal. Yaroslav Lesyuk, who apparently
created both a color and a word, ".said Mr Yushchenko had done nothing
wrong in transferring the rights to his children. 'From the point of view of
fairness and ethics only Viktor Yushchenko has a right to manage "orange
brands." They were done for him and because of him.'"

But some Ukrainians were less impressed: ".Irina Bekeshkina, a sociologist,
wrote on the Ukrainska Pravda website: 'Explain to me what the difference is
between privatization of political brands of the orange revolution by the
current president and privatization of Kryvorizhstal by the previous
president's son-in-law.' "Kryvorizhstal, Ukraine's largest steel plant, was
sold last year for about $US800 million - below other offers - to Viktor
Pinchuk, son-in-law of the former president, Leonid Kuchma, and his
business partners."

While the analogy is not exactly precise, there is something to be said
here. Ukraine has developed the worst characteristics of America - or at
least tiny slivers of its elite have. In 2005, Revolution Industry has
become so professionalized that nothing is allowed to be forgotten: the
anticipated future profits of branding yesterday's uprisings are earmarked
for a sort of trust fund, so that the president's teenage son can enjoy a
life of luxury far beyond that of the average Ukrainian, while
simultaneously proliferating a legacy that never was.

But why should they complain? After all, like the article said, they can
enjoy their civic right to patriotic pride, just by paying their meager
pension to feel the special joy that only orange revolutionary souvenirs can
bring. After all, this was a revolution of the people. I don't know how the
fruit mongers are doing, but chances are among all the problems facing
Ukrainians, scurvy isn't one.

IT'S THE ECONOMY, COMRADE
Image is everything when it comes time to woo the voters, but substance is
sometimes required after winning their confidence. And this is why the new
government is getting flustered. After only 8 months, Revolution Industry
Phase 2 has set in, with the growing public discontent towards the
government's policies, chief of all its economic ones, feeding the dialectic
of endless infighting and political turmoil.

These tensions have resulted in open disputes between ranking ministers of
differing mindsets. While claiming to be in favor of "Western-style reforms"
and economic stimulus, the government under the iron-fisted Yulia
Tymoshenko has gone Soviet. As the Washington Post reported in May,
government-ordered price controls, a mass renationalization process,
onerous taxes and other indiscretions are giving people that Back in the
USSR feeling.

But the new state socialists in Kiev are very happy with the state of
affairs: ".a new socialist minister of privatization has been appointed who
opposes privatization in principle. She asked recently: 'What is so bad
about renationalization?' 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.'"

Tymoshenko's misunderstanding of economics is not really theoretical, nor
is her undeniable statism; rather, as a worshipper of absolute power, she
has come to identify herself with the state. As prime minister, all those
"wonderful profits," as with everything else, will now come under her
control.

Tymoshenko offers a certain dramatic flair as well. As she blustered the
other day, "...I am stumbling over obstacles that were unheard of in the
previous government... I would prefer if the government in Ukraine could
work as a balanced team, but at the moment that's not the case."

Indeed, the Ukrainian economic policy is in disarray as the factional
disputes of a jury-rigged coalition government erupt - even, it seems, over
which party owns the rights to the "Our Ukraine" brand name used by the
revolutionary coalition.

Further, adds a recent report from the Jamestown Foundation, "...The
continued presence of big businessmen in the Yushchenko camp will make
it difficult to separate business and politics. Despite making "a major
campaign issue" out of the relationship between the oligarchs and the
corrupt Kuchma administration, Yushchenko still finds Ukraine's big
businessmen useful allies."

The article goes on to talk about the alleged demands Tymoshenko and her
rivals - er, colleagues - are placing on one another in the run-up to next
year's parliamentary elections, which Tymoshenko, given her newfound
fondness for being the state, is dead set on winning.

PROBLEMS ON THE HORIZON
But it's going to be a bumpy ride. CNN adds that ".Tymoshenko regularly
clashes with her deputy, Anatoly Kinakh, who is the leading pro-business
member of Ukraine's Western-oriented government." And voters who were
seduced by the billionaire's populist appeal are confused.

First they were awarded arbitrary increases in salaries and pensions; then
Tymoshenko announced regional governors would be awarded based on
how much tax money they could bring in, and her government decided to "
...allow imports of Brazilian sugar at the expense of the local sugar
industry," a decision which was criticized openly by Agriculture Minister
Oleksandr Baranivsky.

Now, the IMF has urged caution, with a report that shows alarm at "...the
government's populist policies that have led to an increase in pensions and
wages had also caused [15 percent] inflation growth." Now, ordered by the
IMF to curb inflation and correct its budget deficit, the Tymoshenko
government hopes to raise 600 million euros by "floating" a ten-year
Eurobond.

Reports Kommersant, "...lower-than-expected revenues from privatization
appeared to be behind the move." According to analyst Vassyl Yurchychyn,
"...privatization has stalled, most strategic enterprises won't be sold
until after the legislative elections and the government has one sole
instrument to cover the deficit - borrow the money from abroad." And this is
the proud, strong and independent "Our Ukraine" government nationalistic
voters fervently supported 8 months ago!

Further, gasoline prices in the country continue to rise precipitously; A
recent Itar-Tass report claimed that ".prices are rocketing in the Crimean,
Dnepropetrovsk and the Trans Carpathian regions. In the meantime, three
oil refineries in Ukraine have suspended production. The stoppage of half of
Ukraine's refineries is fraught with major fuel shortages. Import may prove
the sole solution."

Major energy supplier Russia, which has been watching Yushchenko's
floundering with delight and which supplies Ukraine with 90 percent of its
crude oil, still has a card to play here. Gazprom head Alexey Miller stated
that Russia will triple gas prices for Ukraine; it looks as if severing the
"special relationship" after the Orange Revolution will have consequences.

Yushchenko adviser Boris Nemtsov lamented that "...Ukraine is going to
have hard times in the coming months." That sounds about right. -30-
-----------------------------------------------------------------------------------------------------------
Christopher Deliso is a Balkan-based journalist, travel writer and critic
of interventionist foreign policy. Over the past few years, Mr. Deliso's
writing for Antiwar.com, UPI, various American newspapers, websites
and European strategic analysis firms has taken him everywhere from
the shores of the Adriatic to the top of the Caucasus Mountains.

Mr Deliso holds a master's degree with distinction in Byzantine Studies
from Oxford University, and also manages the Balkan-interest news and
analysis website, http://www.BalkanAnalysis.com.
------------------------------------------------------------------------------------------------------------
LINK: http://www.antiwar.com/deliso/?articleid=6922
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