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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 583
Mr. E. Morgan Williams, Publisher and Editor
Washington, D.C., Kyiv, Ukraine, Thursday, October 13, 2005

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

1.                 OCTOBER AND NOVEMBER 2005 DEDICATED TO
                          "UKRAINE'S JACKSON-VANIK GRADUATION"
    Ambassadors Pifer & Miller Chair Jackson-Vanik Graduation Coalition
ANNOUNCEMENT: Jackson-Vanik Graduation Coalition
U.S.-Ukraine Foundation (USUF)
Published by The Action Ukraine Report (AUR)
Washington, D.C., Thursday, October 13, 2005

2.                                    "A STEP TOWARD NORMALCY"
COMMENTARY: By Peter Savodnik
Political editor of the Hill newspaper, Washington
The Wall Street Journal Online (Europe)
New York, NY, Thursday, September 29, 2005

3.  STATEMENTS ABOUT JACKSON-VANIK RESTRICTION ON UKRAINE
                 Two high-level U. S. State Department officials speak out
E. Morgan Williams, Publisher and Editor
The Action Ukraine Report (AUR)
Washington, D.C., Thursday, October 13, 2005

4. GRAIN OUTLOOK: UKRAINE, A COMPETITIVE THREAT FOR KANSAS?
ANALYSIS: By Mike Woolverton
Professor and Extension Specialist
Kansas State University (KSU), Manhattan, KS
Published by CattleNetwork.com
Platt County, Missouri, Wednesday, October 12, 2005

5.             FARM LEADERS SAY UKRAINE ON THE VERGE OF A
                                  MAJOR AGRICULTURAL DISASTER
By Oksana Bondarchuk, FirsTnews
Kyiv, Ukraine, Thursday, October 13, 2005

6.           STATE OF AFFAIRS IN THE AGRO-INDUSTRIAL COMPLEX
Ukrainian News Agency, Kiev, Ukraine, Wednesday, Oct 12, 2005

7.  AGRARIAN POLICY MINISTRY WANTS TO CONTROL AGRICULTURAL
   MARKETS: IMPOSE RESTRICTIONS ON EXPORTS OF MILLING GRAIN
              Socialist Ag Minister wants more government control of markets
APK Information Agency, www.AgriMarket.info
Dnipropetrovsk, Ukraine, Monday, October 10, 2005

8.  SPEAKER LYTVYN CRITICIZES DELAY IN APPOINTING UKRAINIAN
  AMBASSADORS TO THE UNITED STATES, FRANCE, GREAT BRITAIN
                   Viewed as lack of respect for those countries by Ukraine

9.     PROLONGED LACK OF UKRAINIAN AMBASSADOR TO UNITED
                    KINGDOM MAY BE HURTING UKRAINE-EU SUMMIT
Interfax-Ukraine, Kiev, Ukraine, Wed, Oct 12, 2005

10.                             UKRAINE UPDATE: COUNTRY OUTLOOK
The Economist Intelligence Unit Limited
London, UK, Tuesday, October 11, 2005

11.    UKRAINIAN CONSTITUTIONAL COURT PUTS CONSTITUTIONAL
                                                REFORM LAW IN DOUBT
TV 5 Kanal, Kiev, in Ukrainian 1100 gmt 12 Oct 05
BBC Monitoring Service, UK, in English, Wed, Oct 12, 2005

12.                         HEALTH MINISTER APPOINTED IN UKRAINE
Interfax-Ukraine news agency, Kiev, in Russian, 12 Oct 05
BBC Monitoring Service, UK, in English, Wed, Oct 12, 2005

13.  UKRAINIAN PROSECUTOR: PRES POISONING MURDER ATTEMPT
                 "It was not a poisoning, it was an assassination attempt."
Associated Press (AP), Kiev, Ukraine, Wed, October 12, 2005

14. UKRAINE'S TOP PROSECUTOR THREATENS COURT FIGHT IT FIRED
Associated Press (AP), Kiev, Ukraine, Wed, October 12, 2005

15.        TEN COMPANIES TO BID FOR LARGE UKRAINE STEEL MILL
Associated Press (AP), Kiev, Ukraine, Wed, Oct 12, 2005

16.       TURKMEN LEADER DEMANDS UKRAINE PAY FOR MILLIONS
                                       OF DOLLARS WORTH OF GAS
Associated Press (AP), Ashgabat, Turkmenistan, Wed Oct 12, 2005

17.     REGAL PETROLEUM WINS BACKING FROM UKRAINIAN COURT
By Maggie Urry, Financial Times
London, United Kingdom, Thursday, October 13 2005

18.          PM YEKHANUROV TO DISCUSS UKRAINE'S MEMBERSHIP
                                       IN WTO IN SOME WEEKS IN USA
Intefax-Ukraine, Kyiv, Ukraine, Wed, Oct 12, 2005

19.    AD HOC GROUP FOR UKRAINE'S WTO MEMBERSHIP TO MEET
                                  BEFORE DECEMBER CONFERENCE
                           Cannot meet now as Ukraine is still unprepared
Interfax-Ukraine, Kyiv, Ukraine, Wed, Oct 12, 2005

20.        UKRAINIAN PRESIDENT DISCUSSES WTO MEMBERSHIP
     WITH US CONGRESSIONAL DELEGATION HEADED BY JIM COLBY
UNIAN news agency, Kiev, in Ukrainian 1609 gmt 12 Oct 05
BBC Monitoring Service, UK, in English, Wed, Oct 12, 2005

21.           "A GREAT TRAGEDY" - FILM ABOUT UKRAINE'S ORPHANS
                                       High quality DVD can be purchased
United Orphaned Children's Fund of Pennsylvania (UOCFP)
Plymouth Meeting, Pennsylvania, Wednesday, October 12, 2005

22.                           THE UKRAINIAN BANDURIST CHORUS
                            Performing in Western Canada November 2005
Anatoli W. Murha, President, Ukrainian Bandurist Chorus
Warren, Michigan, Thursday, October 13, 2005

23. UKRAINIAN PARTISAN VETERANS CANCEL BIG KIEV PARADE AMID
    PROTEST THREATS FROM RED ARMY VETERANS AND COMMUNISTS
AP Worldstream, Kiev, Ukraine, Wed, Oct 12, 2005
=============================================================
1.               OCTOBER AND NOVEMBER 2005 DEDICATED TO
                      "UKRAINE'S JACKSON-VANIK GRADUATION"
    Ambassadors Pifer and Miller Chair Jackson-Vanik Graduation Coalition

ANNOUNCEMENT: Jackson-Vanik Graduation Coalition
U.S.-Ukraine Foundation (USUF)
Published by The Action Ukraine Report (AUR)
Washington, D.C., Thursday, October 13, 2005

WASHINGTON - Ukrainian President Victor Yushchenko announced after
his January 2005 inauguration that Ukraine's graduation from the provisions
of the U.S. Jackson-Vanik Amendment would be at the forefront of his
economic and foreign policy objectives for 2005.

Last April, following their Washington meeting, U.S. President George Bush
joined President Yushchenko in expressing support for "immediately ending
application of Jackson-Vanik to Ukraine."

And just last month during a visit to Kyiv, U.S. Senators Richard Lugar and
Barack Obama announced that bills had been introduced in Congress to
formally graduate Ukraine from Jackson-Vanik.

Why is Ukraine's graduation from the provisions of the Jackson-Vanik
Amendment on everyone's agenda?

The 1974 Amendment, named for Senators Henry "Scoop" Jackson and
Charles Vanik, imposed trade restrictions on the Soviet Union in response
to its poor human rights policies, particularly restrictions on the
emigration of religious minorities.

However today, more than thirty years later, Ukraine has built a strong
record of allowing open emigration and has created conditions for religious
minorities to pursue their beliefs freely.  Ukraine is a success story for
Jackson-Vanik and it now merits graduation from the Amendment's
provisions.

In June of 2005, government officials, members of the Verkhovna Rada and
Congress, representatives of non-governmental organizations, the media
and business community members met in Washington D.C. for the U.S.-
Ukraine Foundation's Policy Dialogue Working Session.

Engaged in action-oriented, focused discussion of issues and problems in
U.S.-Ukraine relations and Ukraine's democratic reform, the working session
produced "action plans" of policy recommendations for both U.S. and
Ukrainian government officials.

The action plans repeatedly call for the U.S. Congress to graduate Ukraine
from the Jackson-Vanik Amendment.  For this reason, the U.S.- Ukraine
Foundation has declared October and November "Jackson-Vanik
Graduation Months."

The Jackson-Vanik Graduation Coalition, headed by former U.S.
Ambassadors to Ukraine Steven Pifer and William Miller, is working to
achieve Ukraine's graduation from the Jackson-Vanik Amendment before
the December 2005 Congressional recess.

We invite the public to participate in the Coalition's campaign to have
Ukraine graduated from Jackson-Vanik by the end of this year.

                HISTORICAL BACKGROUND ON THE AMENDMENT

The Jackson-Vanik Amendment, as contained in Title IV of the 1974 U.S.
Trade Act, was a response to the discriminatory emigration policies of the
former Soviet Union and other communist states. The communist restrictions
had the most serious impact on religious minorities, particularly on the
ability of Soviet Jews to emigrate.

From the perspective of the United States, these restrictions on the free
movement of persons were actionable human right violations that justified
harsh U.S. trade consequences.

The Jackson-Vanik Amendment stated that non-market economies that
continued to impose emigration restrictions on their citizens would not be
granted permanent normal trade relations or "most favored nation" status
by the United States.

Ukraine is still waiting to be formally graduated from Jackson-Vanik,
despite the fact that President Bill Clinton in 1997 found Ukraine to be in
full compliance with the Amendment's freedom-of-emigration requirements.
Several former Soviet states have already been graduated, including
Georgia and Kyrgyzstan in 2000 and Armenia in 2004.

Various non-governmental groups, including the National Conference on
Soviet Jewry, the Euro-Asian Jewish Conference and the Heritage
Foundation, agree that over its thirty-year lifespan, Jackson-Vanik has
served the important purpose of securing freedom of emigration for religious
minorities.

However, they also believe that Ukraine has demonstrated its full compliance
with the Amendment's objectives and therefore should be graduated from the
trade restrictions it imposes.

Today's Ukraine, colored by the democratic Orange Revolution, has been
applauded by President Bush and Congress for its free-market reforms and
open-governance policies.

Ukraine's graduation from Jackson-Vanik is therefore an important
affirmation of Ukraine's successful democratization and President
Yushchenko's global economic agenda.

The Heritage Foundation's Dr. Ariel Cohen has said,

        "The U.S. has supported the triumph of democracy in Ukraine and is
        interested in a Ukraine that is stable, prosperous, and integrated
        in Euro-Atlantic structures. Washington should demonstrate
        unwavering support for Ukraine's pursuit of its democratic
        aspirations."

Before the House International Relations Committee in July 2005,
Ambassador Daniel Fried, Assistant Secretary for European and Eurasian
Affairs, U.S. State Department, testified that,

        "Ukraine has complied with the provisions of the Jackson-Vanik
        Amendment to the Trade Act of 1974 for over a decade. This
        Administration strongly supports Ukraine's immediate "graduation"
        from Jackson-Vanik.

        As the Ukrainian people look for tangible signs of our new
        relationship, they are perplexed that Ukraine remains tainted by the
        legacy of Jackson-Vanik. We urge Congressional action on this
        matter."

The U.S.-Ukraine Foundation and the Jackson-Vanik Graduation Coalition
believe that graduating Ukraine from the Jackson-Vanik Amendment this
year is precisely how the U.S. should demonstrate its unwavering support of
Ukraine.

                          JACKSON-VANIK'S TRADE RESTRICTIONS

In addition to the historical human rights concerns that prompted the 1974
Amendment, it is also important to consider the current political and trade
implications of Jackson-Vanik's continued application to Ukraine.

Since President Clinton's 1997 finding of full compliance, which was
highlighted in a July 1998 joint statement by the U.S.-Ukraine Binational
Commission, led by U.S. Vice President Al Gore and Ukrainian President
Leonid Kuchma, Ukraine has received normal trade relations status under
the full compliance provision of the Jackson-Vanik Amendment.

However, as early as 1992, President George H.W. Bush exercised his
presidential waiver authority to extend normal trade relation treatment to
Ukraine.

Non-normal trade relations status allows the U.S. to impose higher tariffs
on imports as well as non-tariff barriers such as quotas.

However, the 1992 presidential waiver of the Amendment's trade restrictions
and the 1997 finding of full compliance have meant that Ukraine's import and
export sectors have  nonetheless enjoyed normal trade relations status and
have not been directly harmed by U.S. tariffs or barriers resulting from
Jackson-Vanik.

However, one important reason for desiring permanent normal trade relations
status, as would be achieved by graduation from the Jackson-Vanik
provisions, is the significance of permanent status to the global trade
community.

Economists show that permanent normal trade relations status, much like
market-economy status, improves foreign investment opportunities and the
bargaining power of domestic business in trade negotiation.

This is mainly because permanent normal trade relations and market-
economy status both indicate domestic economic stability and the fact
that the country abides by the global trade rules.

                         JACKSON-VANIK'S POLITICAL IMPLICATIONS

Ukraine's current status (in full compliance, but still subject to
Jackson-Vanik) also carries a negative political connotation.  Continued
application implies that Ukraine has not met the requirements of
Jackson-Vanik.  This is distressing to Ukrainians and friends of Ukraine
who believe - correctly - that Ukraine has fully met the Amendment's
requirements.

This is why Jackson-Vanik graduation has figured so prominently on
President Yushchenko's agenda with the United States.

According to Peter Savodnik's September 29, 2005 article in the Wall Street
Journal (Europe,) "A Step Towards Normalcy,

"Delaying an end to Jackson-Vanik -- for whatever reason -- would hinder the
democratic transition by depriving Mr. Yushchenko of a much-needed political
win. By lifting Jackson-Vanik this year, before the parliamentary campaign
begins in earnest, Washington would let everyone know that the Ukrainian
president is not alone."

                               THE CONGRESSIONAL RESPONSE

Six bills have been introduced in the 109th Congress to graduate Ukraine
from Jackson-Vanik, including S. 410 by Senator John McCain, S.632 by
Senator Richard Lugar, H.R. 885 by Representative Henry Hyde and H.R.
1053 by Representative Jim Gerlach.

But some in Congress seem unwilling to move on the issue of Ukraine's
graduation, apparently believing that maintaining the Amendment's
application to Ukraine allows the U.S. to retain leverage when challenging
certain trade issues, including Ukraine's importation of American poultry.

Another concern in the U.S. Congress has been Ukraine's historically weak
intellectual property protection laws.  In 2001, such concerns led the U.S.
to designate Ukraine as a "Priority Foreign Country" under its Special 301
process, which placed Ukraine on a list of the biggest violators of
intellectual property standards.  The U.S. subsequently withdrew certain
trade benefits from Ukraine.

However on August 2, 2005, the Verkhovna Rada passed a Laser-Readable
Disk Law, which significantly strengthened the intellectual property regime
in Ukraine.  (The law also meets crucial WTO membership requirements by
creating enforcement mechanisms to counter the illegal production of CDs
and DVDs.)

As a result, on August 31, 2005, U.S. Trade Representative Rob Portman
announced that all tariff sanctions that had been placed on Ukrainian
exports to the United States were now being lifted.

Portman commended President Yushchenko and Prime Minister Tymoshenko
for "their personal involvement in securing passage of these amendments,
which is expected to improve Ukraine's protection of intellectual property
 rights."

                                                TO GET INVOLVED

The U.S. Congress is currently considering bills to graduate Ukraine from
Jackson-Vanik, S.46 in the Senate, introduced January 24, 2005 by Senators
Carl Levin (D-MI), Richard Lugar (R-IN) and Debbie Stabenow (D-MI) and H.R.
1170 in the House, introduced March 8, 2005 by Representatives Sander
Levin (D-MI), Candice Miller (R-MI), Vic Snyder (D-AR) and Eliot Engel
(D-NY).

S. 46 has been referred to the Senate Finance Committee, chaired by Senator
Charles Grassley (R-IA) and H.R. 1170 has been referred to the House Ways
and Means Committee, chaired by Representative Bill Thomas (R-CA).  Both
bills are awaiting committee consideration.

The U.S.-Ukraine Foundation and the Jackson-Vanik Graduation Coalition
believe that now is the appropriate time for Congress to graduate Ukraine
from Jackson-Vanik.

The Coalition is currently expanding its network of support and developing
an action plan for working with Congress to achieve the goal of Ukraine's
graduation by the end of this year.

The U.S.-Ukraine Foundation urges your participation in the Jackson-Vanik
Graduation Coalition.

For more information on participating in the Coalition, please call the
U.S.-Ukraine Foundation (202) 347-4264 or contact Alana Malick,
U.S.-Ukraine Foundation Fellow, alina@usukraine.org.
-------------------------------------------------------------------------------------------------------
NOTE:  The publisher and editor of The Action Ukraine Report (AUR)
is a member of the organizing committee of the Jackson-Vanik
Graduation Coalition in Washington, D.C.   EDITOR
=============================================================
2.                                     "A STEP TOWARD NORMALCY"

COMMENTARY: By Peter Savodnik
Political editor of the Hill newspaper
The Wall Street Journal Online (Europe)
New York, NY, Thursday, September 29, 2005

WASHINGTON -- In its quest to democratize the planet, Washington has
invaded countries, funded fighters, convened high-level summits and pushed
transcontinental trade pacts. Oddly, it has yet to "graduate" Ukraine from
an antiquated human-rights measure that, if left in place, could slow the
spread of freedom in the former Soviet Union.

The 1974 Jackson-Vanik amendment, designed primarily to restrict Soviet
exports to the U.S., remains a canker sore in U.S.-Ukrainian relations. Most
every senior Ukrainian official, from President Viktor Yushchenko to Foreign
Minister Boris Tarasyuk, both of whom traveled to the United States this
month, has called for lifting it.

This emphasis on Jackson-Vanik might seem to be misplaced; Ukraine gets
annual waivers from the provision, so Ukrainians' access to U.S. markets is
not curtailed. But it has political and symbolic meaning for a nation still
struggling to overcome its Soviet past.

There is a widespread feeling among Ukrainians that their country cannot be
considered "normal" as long as this remnant of the old days lingers.

Lifting Jackson-Vanik would cost the U.S. nothing. President George W. Bush
has signaled support for taking action. So, too, have foreign-policy mavens,
Republicans and Democrats alike, on Capitol Hill, as well as Sovietologists
and Russia scholars at the State Department and the National Security
Council.

So what's the holdup? Simply put, American democracy is getting in the way
of democracy overseas. Parochial congressional interests -- involving
everyone from chicken farmers to movie stars -- are stalling efforts,
spearheaded by Republican Sen. John McCain and Rep. Henry Hyde and
Democratic Rep. Tom Lantos, to lift Jackson-Vanik from Ukraine.

While most everyone who cares about geopolitics and democracy in the
former Soviet Union backs graduating Ukraine from Jackson-Vanik, some
members of Congress have found the provision useful when bargaining
with Kiev and other former Soviet capitals such as Moscow.

Case in point: In 2002, after Russia and Ukraine imposed quotas on U.S.
poultry imports, Democratic Sen. Joseph Biden rescinded his support for
lifting Jackson-Vanik.

Similarly, the Motion Picture Association wants authorities in Ukraine to
protect intellectual property rights. American oil and gas executives want
access to Ukraine's energy markets. And bankers, lawyers, hotel owners,
car manufacturers, venture capitalists and other potential investors want
Ukraine's banking, torts and law-enforcement systems cleaned up so they
meet Western standards of transparency and accountability.

All of these groups have, directly and indirectly, led lawmakers to take a
cautious stance on lifting Jackson-Vanik. Their demands are reasonable,
and Ukraine would be wise to listen to Western officials seeking to bring
the ex-Soviet republic into the liberal fold. Nor can Sen. Biden and other
lawmakers be blamed for representing the interests of their constituents.

But delaying an end to Jackson-Vanik -- for whatever reason -- would hinder
the democratic transition by depriving Mr. Yushchenko of a much-needed
political win and, possibly, complicating Ukraine's efforts to be admitted
to the World Trade Organization.

This would be an ironic twist. Jackson-Vanik was never intended to be a
bargaining chip for opening markets to U.S. business. It was meant to punish
the Soviets for restricting Jewish emigration, and it did so by barring
Moscow from gaining "most favored nation" status. In other words,
Jackson-Vanik sought a human-rights end via trade-related means.

Never mind that the country Jackson-Vanik was intended for no longer exists.
(A similar argument convinced many Republicans a few years back that the
U.S. should pull out of the Anti-Ballistic Missile Treaty.) What matters is
that Jackson-Vanik, once meant to foster progress, now runs the distinct
risk of impeding it.

Even Jewish groups concerned that Ukraine has yet to confront its past --
including support of many Ukrainians during World War II for Hitler's
holocaust and the pogroms of the czarist and Soviet eras -- want
Jackson-Vanik lifted now. Despite legitimate reservations, these groups
recognize that it's time to take this step.

Consider the American Jewish Committee. An Aug. 2 letter from David Harris,
the AJC's executive director, to all 535 members of Congress states: "The
Jewish community has come a long way since the end of communism in 1991
and the re-establishment of Ukrainian independence....To be sure, some
difficult issues remain.

First, there is still work to be done by the government in the matter of
restitution of Jewish communal property. And second, manifestations of
anti-Semitism, though condemned by the government and by no means
unique to Ukraine in today's world, remain a matter of concern. Even so,
the current vitality of the Jewish community is a remarkable sight to
behold."

Referring to a recent trip taken by AJC representatives to Ukraine, Mr.
Harris concludes: "One issue in particular on the minds of those officials
with whom we met is the hope for graduation from the Jackson-Vanik
Amendment, a goal we fully share."

Graduating Ukraine from Jackson-Vanik does not mean anti-Semitism is no
longer a problem in Ukraine. It means helping an embattled leader continue
doing what must be done -- razing the old regime and constructing a new
economic order.

In a little more than five months, voters will decide whether they want this
new order in important parliamentary elections. At stake is Ukraine's
nascent democracy and, less obviously, reform movements in Russia,
Belarus, Moldova and Central Asia; efforts to curb arms and drug
trafficking; and the international struggle pitting the civilized world
against terrorists and the criminal states propping them up.

"Lifting this amendment would send a positive signal to the Ukrainian
people," said Sergiy Korsunsky, charge d'affaires at Ukraine's embassy
in Washington. It would show, Mr. Korsunsky explained, that President
Yushchenko is accomplishing something.

Mr. Yushchenko might be a flawed leader, but his aspirations overlap with
the West's aspirations for Ukraine. That is what matters. By lifting
Jackson-Vanik this year, before the parliamentary campaign begins in
earnest, Washington would let everyone know that the Ukrainian president
is not alone. -30-  [The Action Ukraine Report Monitoring Service]
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Mr. Savodnik is political editor of the Hill newspaper, Washington.
=============================================================
      Send in names and e-mail addresses for the AUR distribution list.
=============================================================
3.  STATEMENTS ABOUT JACKSON-VANIK RESTRICTION ON UKRAINE
                  Two high-level U. S. State Department officials speak out

E. Morgan Williams, Publisher and Editor
The Action Ukraine Report (AUR)
Washington, D.C., Thursday, October 13, 2005

WASHINGTON - Two high level officials of the Bush Administration at
the U.S. Department of State have recently made very strong statements
in favor of the U.S. Congress lifting the provisions of the Jackson-Vanik
Amendment to the Trade Act of 1974 in the case of Ukraine and
establishing Permanent Normal Trade Relations between Ukraine and
the United States.

The recent statements were by E. Anthony Wayne, U.S. Assistant
Secretary of State for Economic and Business Affairs and by David
Kramer, Deputy Assistant Secretary of State for Europe and Eurasia.

The two statements:

(1)  STATEMENT: By E. Anthony Wayne, U.S. Assistant Secretary of
State for Economic and Business Affairs as part of his presentation at
Kiev International University, Kyiv, Ukraine, Thursday, October 6, 2005

                                      JACKSON-VANIK AMENDMENT
"The Ukrainian government has urged the U.S. Congress to lift provisions of
the Jackson-Vanik Amendment to the Trade Act of 1974.  For over a decade,
we know Ukraine has had free emigration policies and practices, the original
basis for Jackson-Vanik.

This Administration strongly supports ending the use of Jackson-Vanik in
the case of Ukraine and establishing Permanent Normal Trade Relations
between our two countries."

(2) STATEMENT: By David Kramer, Deputy Assistant Secretary of State
for Europe and Eurasia as part of his presentation at the Ukraine's Quest
for Mature Nation Statehood: Roundtable VI, held in Washington, D.C.
on September 27-28, 2005.

                       JACKSON-VANIK AMENDMENT PROVISIONS
"On Jackson-Vanik. As you know, for more than a decade, Ukraine has
complied with Jackson Vanik Amendment provisions and the United States,
the Bush Administration, strongly supports Ukraine's graduation from
Jackson-Vanik to the extension of permanent normal trade relations to
Ukraine."  -30-
                 [The Action Ukraine Report (AUR) Monitoring Service]
=============================================================
       Send in names and e-mail addresses for the AUR distribution list.
==============================================================
4. GRAIN OUTLOOK: UKRAINE, A COMPETITIVE THREAT FOR KANSAS?

ANALYSIS: By Mike Woolverton
Professor and Extension Specialist
Kansas State University (KSU), Manhattan, KS
Published by CattleNetwork.com
Platt County, Missouri, Wednesday, October 12, 2005

MANHATTAN, Kansas - The following is a competitive threat analysis
completed after returning from a week-long trip to the Ukrainian State of
Vinnytsia. Vinnytsia, located in South Central Ukraine, is the country's
leading wheat producing state.

Ukraine is a former Soviet Union country about the size of Texas that lies
at the same latitude as North Dakota in the United States. Ukraine's
borders touch Russia, Poland, Hungary, Romania, Moldova, and the
Black Sea.

The Black Sea Coastal Area has moderate winters and hot summers.
Inland, the summers are warm while winters are very cold.

Annual rainfall varies from 13.8 to 17.7 inches. Because the Northern
latitude reduces moisture loss due to evaporation and transpiration,
Ukrainian farmers get more output per inch of rain than do Kansas farmers.

The Western part of Ukraine is mountainous and there are some mountains
on the Crimean Peninsula. The rest of Ukraine looks much like Kansas.

There are limited areas of rolling hills with wooded valleys, but most of
the country is covered by flat, wide-open steppes. The steppes are
equivalent to the short grass prairies of Central and Western Kansas.

To the eye, the only difference is the color of the soil which is dark;
almost black. The high organic matter topsoil runs deep to give the land
excellent production potential. Ukraine was once referred to as the 'Soviet
bread basket' similar to Kansas, the Breadbasket State.

The concern for Kansas wheat producers should be that Ukraine will finally
emerge from the Soviet Era to once again become a bread basket and
compete directly against Kansas in the international wheat market.

With ample nitrogen fertilizer, Ukrainian wheat can yield 70 to 90 bushels
per acre. Dry land corn with applied nitrogen will produce 145 to 160
bushels per acre. Unfortunately, few Ukrainian collective farms are able to
apply fertilizer or other agricultural chemicals.

Depending almost solely on the natural fertility of the soil, yields are 30
to 40 bushels per acre for wheat and 100 to 120 bushels per acre for corn.

Since the collapse of the Soviet Union in the early 1990s, collective farms
have not been provided with inputs and have had no money to purchase any.
Interest rates on borrowed money are 20% or higher, effectively shutting off
credit flows into agriculture.

Wheat fields tend to be very large; 500 to 1,000 acres. However, the
collective farms do not appear to be able to capture economies of size
associated with efficient use of equipment.

The equipment is of Soviet Era vintage; at least twelve to fifteen years
old. It is small compared to new generation U.S. equipment and difficult
to maintain.

One gentleman said there were 250 combines in the State of Vinnytsia
and the wheat in that state could not be harvested in a timely manner. "If
they were new John Deere combines," he said, "we could harvest the
entire crop in four days."

Cost savings from no purchased inputs coupled with low cost labor and
no charge for worn out equipment means low production costs; about
$2 per bushel for wheat.

However, collective farms are required to sell wheat to a government
approved buyer. (There is only one for the entire country.) The buyer's
price this year for wheat was about $1.60 per bushel.

The wheat was of low quality and much of it was exported to Black Sea
Region countries for about the same price as corn. Farmers responded
to the disincentive by leaving 30 to 40% of the land idle when it came
time to plant wheat this fall.

Currently, the crop is suffering from lack of rainfall. If rain does not
come soon, the wheat may not have enough growth to survive the harsh
Ukrainian winter. There was no talk of reforming the marketing and
pricing system.

Besides the lack of a market system and a dysfunctional financial system,
Ukrainian agriculture is being held back by laws that prevent private
ownership of land and a lack of investment capital.

In 2007, private ownership of land will become legal. Individuals and
companies will be able to form farming units with a profit incentive to
run them efficiently.

Even with private ownership of land, if all the other problems were
resolved, it is doubtful that Ukraine can become competitive in the
international marketplace for wheat without substantial foreign direct
investment.

To attract investment capital, political risk in Ukraine will have to be
reduced to a level acceptable to international investors.

Under difficult conditions, Ukraine produces about 750 million bushels
of wheat per year, nearly twice as much as Kansas.

If the situation in Ukraine changed so that farmers there were free to
produce under conditions similar to those enjoyed by Kansas farmers,
wheat production could double to about 1.5 billon bushels per year.

Of that amount, about 1 billion bushels would be available for export
compared to recent Ukrainian exports which have averaged about 220
million bushels per year.

The long term potential does exist for Ukraine to have a major impact
as a supplier to the world market for bread wheat.

But the bottom line is wheat growers in Ukraine are not likely to pose a
significant competitive threat to Kansas wheat growers anytime soon.
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CONTACT: Mike Woolverton, Professor and Extension Specialist
Kansas State University, 785 532 1462,  mikewool@agecon.ksu.edu
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LINK: http://www.cattlenetwork.com/content.asp?contentid=11376
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FOOTNOTE:  I grew up in the great state of Kansas and worked in agri-
business and rural development there for several years.  I have done
the same in Ukraine over a period of years.

There is no way Ukraine will ever be competitive with Kansas, though
it should be, as long as the Socialist party of Ukraine is in charge of
the ministry of agriculture in Kyiv as is now the case.  The Socialist party
does not really believe in the concept of private land or a private
market-driven agricultural system.

Many experts feel one of the great disappointments of the Yushchenko
government is that they have allowed the Socialists to be in charge
of agricultural  policy in Ukraine. Not what Ukraine needs now at all.
The disastrous agricultural policies of the government over the past
14 years since independence are being continued.    EDITOR
==============================================================
5.          FARM LEADERS SAY UKRAINE ON THE VERGE OF A
                             MAJOR AGRICULTURAL DISASTER

A number of factors have combined to bring Ukraine to the verge of a major
farming disaster, according to a number of agricultural leaders who say that
the drought during a critical growth stage of winter wheat that will be
harvested in late summer 2006 means a bad year next year for farm income,
grain exports and the state budget.

By Oksana Bondarchuk, FirsTnews
Kyiv, Ukraine, Thursday, October 13, 2005

KYIV - After a summer with little rainfall, soaring gas prices and political
instability, representatives of agrarian enterprises voiced their concerns
Tuesday about the state of Ukrainian agricultural. They assert that the
situation needs urgent attention before real disaster strikes.

"Ukrainian agriculture won't be able to [continue to] undergo the trials it
has experienced this year.We will have not only instability in the product
market, but also serious problems with providing our citizens with food,"
Ivan Tomych, an MP and the honorary vice-president of the Ukrainian
Farmers' Association, said at a press conference on October 11. "All
branches of agriculture are unprofitable," he said.

"This is the first time when grain crops have becoming unprofitable," said
the head of the all-Ukrainian Agricultural Enterprises Union Oleksandr
Borovyk.

Tomych, who heads the agriculture and land committee of the parliament,
announced that next week the part of the parliamentary agenda will be
devoted to agricultural legislation.  "On October 18, more than 20 bills
related to agriculture will be reviewed." he said.

Tomych told FirsTnews that the proposed legislation would make some
changes in the 2006 budget, and address the financing of grain and sugar
market interventions that help to stabilize prices. In an effort to reduce
oil prices for farmers, the committee is also proposing to repeal the excise
tax on oil for agriculture.

The parliament will also address land reform legislation. Tomych said that
the committee is going to introduce two tax bills. "We propose to abolish
the value added tax for farmers starting from January 1, 2006," he explained
to FirsTnews.

Tomych discussed Ukraine's complicated tax code, by one recent
measurement the fourth worst in the world. He called for simplification, but
not for another four years.

The tax system should function in the way it does today until 2010, Tomych
said. Then the parliament should work out a unified tax system.
"We can't do it [the unified tax] now because the system here is not so
easy," the deputy explained.

However, Farmers want a simpler tax scheme, which Borovyk said should
be a land tax. "It is necessary to simplify this system. The state doesn't
need it in the way it is today," he said.

The deputy general director of the Ukrainian Agrarian Confederation, Mykola
Vernytskyi, said that any proposed changes in the tax system for agriculture
wouldn't be accepted now, because [any change] causes a cascade of
associated effects on the overall economy.

While the tax system is far from perfect, in general, he noted that "the
situation we have with taxes today is [more or less] acceptable for every
one."

Vernytskyi stressed that deputies should pay special attention for
developing the market and creating conditions for attracting investments.
Market growth should come from directing budget money to "the complex
development of an environment for agricultural business," and not to state
subsidies as it is now, according to him.

Vernytskyi also said that it is very important to develop market conditions
for investment in land. He mentioned that Ukrainian legislation doesn't
regulate mortgages. Consequently, he said, the full economic potential that
comes from land ownership and investment is not fully realized here.

Tomych considers problems of the grain, sugar and sunflower markets,
prices for fuel and budget financing to be the most important issues
facing Ukrainian agriculture today.

"I hope the bills that address the most important issues will be passed,
because the situation is really very problematic," he said. We can't talk
 about the future until we solve today's problems, he concluded. -30-
---------------------------------------------------------------------------------------------------
LINK: http://www.firstnews.com.ua/en/article.html?id=110598
==============================================================
6.         STATE OF AFFAIRS IN THE AGRO-INDUSTRIAL COMPLEX

Ukrainian News Agency, Kiev, Ukraine, Wednesday, Oct 12, 2005

KIEV - President Viktor Yuschenko, Deputy Premier for Agrarian Issues
Yurii Melnyk and Minister of Agricultural Policy Oleksandr Baranivskyi have
discussed the state of affairs in the agro-industrial complex. Ukrainian
News has learned this from the presidential press service.

During the meeting, Melnyk and Baranivskyi briefed the President on the
state of the agro-industrial complex, particularly in the stock-breeding and
plant-growing spheres.

They also informed Yuschenko on the progress in work on the concept of
the State Target Program for Agrarian Policy Development in 2006-2009.

Yuschenko recalled that the year of 2006 was announced the Year of Village,
and its successful holding in the context of development of all agricultural
fields and solving social problems of rural areas are being founded already
this year.

Apart from this, Yuschenko praised progress in the stock-breeding field. He
also said that serious consequences of this year's drought should be
overcome as soon as possible.

As Ukrainian News reported, in late September, the Verkhovna Rada pointed
to the crisis situation in the agrarian sector, and decided to consider a
number of bills concerning the agricultural sphere in October-November.
==============================================================
7.  AGRARIAN POLICY MINISTRY WANTS TO CONTROL AGRICULTURAL
    MARKETS: IMPOSE RESTRICTIONS ON EXPORTS OF MILLING GRAIN
             Socialist Ag Minister wants more government control of markets

APK Information Agency, www.AgriMarket.info
Dnipropetrovsk, Ukraine, Monday, October 10, 2005

KYIV - Agrarian Policy Ministry of Ukraine proposes to put temporary
restrictions onto exports of milling grain from Ukraine, the Minister
Olexandr Baranivsky told media October 10.

He said the suggestion was urged by extremely unfavourable weather
conditions this year for planting and development of winter grain crops.

"We must not let grain be sold now, and then have to buy it from abroad",
said the minister, adding that the state should "insure" itself in case of
the crop failure next season.

The minister said he understood that restriction of the exports was a
non-market method. "But if there are force majeure circumstances, like
floods, earthquakes, or a drought - like now - the state has a right to use
other methods to protect itself. These are extraordinary circumstances,
and we cannot exclude any of the measures", the minister said.

Once being published, this announcement has aroused criticism of local
market participants, claiming such measures as being able to cause
nothing more but price disruption on the market, not to speak of their
being illegal, if implemented, in terms of international business law.
-----------------------------------------------------------------------------------------------------
LINK: http://www.agrimarket.info/showart.php?id=29712
==============================================================
8.    SPEAKER LYTVYN CRITICIZES DELAY IN APPOINTING UKRAINIAN
    AMBASSADORS TO THE UNITED STATES, FRANCE, GREAT BRITAIN
                   Viewed as lack of respect for those countries by Ukraine

Ukrainian News Agency, Kyiv, Ukraine October 11, 2005

KYIV - Verkhovna Rada Speaker Volodymyr Lytvyn has criticized the delay
in appointing Ukrainian ambassadors to various countries.

Lytvyn issued the criticism during a visit to Zhytomyr. According to him,
Ukrainian ambassadors to many countries have still not been appointed.

He states there are about 25 such countries, including the United States
and Germany. In his words, the authorities in these countries perceive such
a delay as a lack of respect for their countries.

He cited France as an example, stressing that Ukraine's relations with this
country was previously damaged for a long period.

According to him, Ukraine was unable to appoint an ambassador to France
for a long period after Anatolii Zlenko's appointment as Ukraine's foreign
affairs minister and this adversely affected Ukrainian-French relations.

As Ukrainian News earlier reported, President Viktor Yuschenko appointed
Ukraine's Ambassador to Nigeria Oleh Skoropad as ambassador to Benin
concurrently.  -30-  [The Action Ukraine Report (AUR) Monitoring Service]
-------------------------------------------------------------------------------------------------------
FOOTNOTE:  Most observers in Washington are just dumbfounded as
to why Ukraine continues to refuse to appoint a new ambassador to the
United States, of all places.  Observers say it just does not make any
sense that the Yushchenko government would not want to have one of
their best, brightest and loyal persons in Washington. The new government
has now had almost nine months to make a decision on this matter. EDITOR
==============================================================
9.   PROLONGED LACK OF UKRAINIAN AMBASSADOR TO UNITED
                KINGDOM MAY BE HURTING UKRAINE-EU SUMMIT

Interfax-Ukraine, Kiev, Ukraine, Wed, Oct 12, 2005

BRUSSELS - The prolonged lack of a Ukrainian ambassador to Great
Britain has a negative impact on the preparations for the Ukraine-EU
summit planned for December 1, a source inside the European Union
has said.

Because of this, the Ukrainian side may fail to reach the solution of the
problems and aims it aspires to.

Besides, it is necessary for Ukraine to have the corresponding influence in
London, as its advance on the way of European integration greatly depends
on the Great Britain's position, which currently holds the presidency of the
EU.

As earlier reported, President of Ukraine Viktor Yushchenko dismissed
Ukraine's ambassador to the UK Ihor Mitiukov on August 31 2005.
Mitiukov had occupied the post since September 12, 2002.   -30-
==============================================================
10.                      UKRAINE UPDATE: COUNTRY OUTLOOK

The Economist Intelligence Unit Limited
London, UK, Tuesday, October 11, 2005

[1] OVERVIEW: The government and the presidential administration will
ensure greater political openness than existed in the past, and will push
for faster economic reform. However, occasionally poor policy formulation
and government in-fighting will limit the extent of improvements.

Moreover, the 2006 parliamentary election and the planned transfer of
greater powers to the legislature will bring significant distractions. Even
after the election, the generally pro-government majority in parliament will
be unstable.

The Economist Intelligence Unit expects real GDP growth to decelerate to
3.7% in 2005, before recovering to 5% or more in 2006-07. Year-end
inflation is forecast to slow to 7% by 2007.

The currency will remain broadly stable in nominal terms against the US
dollar in 2006-07, with only a slight appreciation expected. The
current-account surplus reached a record high in 2004, but will decline in
subsequent years owing to strong import growth.

[2] DOMESTIC POLITICS: Ukraine's political outlook has changed
significantly over the past month, owing to a surprise decision by the
president, Viktor Yushchenko, to dismiss the prime minister, Yuliya
Tymoshenko, and her entire cabinet on September 8th.

In so doing, he splintered the coalition that brought him to power. Ukraine
will now see the emergence of a separate pro-reform political force,
centred on Ms Tymoshenko, that will compete with the Yushchenko
camp on the promise of delivering reform.

In itself, this is a welcome development, as there is a need for more
constructive, competitive politics in Ukraine.

Moreover, it is still likely that the two sides will be able to co-operate
in the legislature following the 2006 parliamentary election. However, the
prospects of a cohesive pro-presidential majority emerging after the
election are even worse than before.

Mr Yushchenko, for his part, will now govern as a more centrist figure,
particularly as he will at times be forced to co-operate with
oligarch-linked factions in parliament. This too will limit the prospects
for rapid political and economic reform.

[3] INTERNATIONAL RELATIONS: Integration with the West will remain a
priority of the Ukrainian leadership, even though recent domestic and
international developments have cast doubt on the extent to which this will
be possible.

Despite the rejection of the EU's proposed constitutional treaty by French
and Dutch voters earlier in 2005, which has produced a backlash against
enlargement, Ukraine will continue to prioritise its relationship with the
EU and push ahead with implementing the commitments contained in the
EU-Ukraine Action Plan signed earlier in 2005.

However, it is likely that the plan will be a less effective policy anchor
than had been expected before the French and Dutch referendums.

[4] POLICY TRENDS: Despite the numerous disappointments and reform
setbacks that have marked its time in power so far, the new Ukrainian
administration as a whole is still the most reform-minded in the country to
date.

Following the dismissal of the Tymoshenko cabinet in September, the reform
process is likely to become more orderly. However, political considerations
related to the March 2006 parliamentary election mean that there is little
chance of significant reforms in coming months.

[5] INTERNATIONAL ASSUMPTIONS: With economic policy being tightened
in a number of countries, and high levels of debt weighing on consumers,
companies and governments, the global economy is expected to continue to
slow.

We forecast a deceleration in world GDP growth on a purchasing power parity
(PPP) basis, from an estimated 5.1% in 2004 to 4% annually in 2006-07.

A drop in oil prices later in 2006-07, combined with real appreciation of
the exchange rate of the rouble and slower growth of its oil output, will
bring down real GDP growth in Russia, Ukraine's largest export market. The
prospects for Ukraine's terms of trade are not particularly favourable.

Ukraine will benefit from a modest reduction in the cost of oil imports in
2006 and a larger cut in 2007, but prices will remain high by historical
standards.

Moreover, prices for steel, which account for almost 40% of Ukraine's export
earnings, are likely in 2006 to be 10% below 2005 prices, and are expected
to fall by another 15% in 2007.

[6] ECONOMIC GROWTH: Real GDP growth continues to decelerate rapidly.
The economy expanded cumulatively by only 2.8% year on year in January-
August, down from a post-independence record of just over 12% for 2004
as a whole.

The slowdown reflects less buoyant external conditions, particularly for the
steel sector, as well as sluggish investment trends, which are attributable
to political instability and concerns over the government's review of
previous privatisations.

This review has been both controversial and protracted, and any improvement
in investment in the second half of 2005 is expected to be modest. Real GDP
growth for the year as a whole is now forecast at 3.7%.

[7] INFLATION: Consumer price inflation stood at roughly 15% year on year in
August 2005. Inflation is expected to ease to 12% by end-2005, but will
remain in double figures owing to sharply rising incomes.

An increase in administered prices, which were generally kept down in 2004
because of the approach of the presidential election, will also boost
inflation--although the government will still try to contain any price
increase, in anticipation of the March 2006 parliamentary election.

The narrowing of the trade surplus and a slight currency strengthening will
nevertheless contain the pressure on prices by permitting a tighter monetary
policy.

However, the government is expected to post budgetary deficits during the
forecast period. Combined with high oil prices and a rise in the gas price
paid to Russia, as well as further large foreign-currency inflows expected
as a result of the current-account surplus, inflation is only likely to fall
to around 7% year on year by the end of 2007.

[8] EXCHANGE RATES: During the past three years the NBU had often
intervened on the interbank market to keep the hryvnya's exchange rate
fixed against the US dollar. The central bank signalled a shift in policy in
April 2005, when it allowed the hryvnya to appreciate by 3%.

So far this has proved to be a one-off attempt to mitigate risks associated
with continued large-scale inflows of export earnings. We believe that the
NBU will not permit significantly greater further appreciation, and will
continue to intervene to soak up excess foreign currency when necessary.

Although the economy is slowing, the likelihood of currency weakening
remains limited, in view of the strong current-account inflows and concerns
over inflation.

However, the risks to this forecast have risen in recent weeks, with the NBU
hinting that it might favour currency depreciation if it could discourage
outflows of speculative capital, which is coming into the country in
anticipation of currency revaluation.

[9] EXTERNAL SECTOR: With higher incomes and oil prices pushing up
import expenditure, and the steel sector suffering from a less favourable
external environment, Ukraine's current-account surplus is expected to fall
to around 4.2% of GDP in 2005, and to narrow further in 2006-07.

This will reflect lower annual average steel prices, and continued strong
import growth linked to a further rise in incomes and a pick-up in
investment.  -30-
         [Edited by The Action Ukraine Report (AUR) Monitoring Service]
==============================================================
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==============================================================
11.    UKRAINIAN CONSTITUTIONAL COURT PUTS CONSTITUTIONAL
                                                REFORM LAW IN DOUBT

TV 5 Kanal, Kiev, in Ukrainian 1100 gmt 12 Oct 05
BBC Monitoring Service, UK, in English, Wed, Oct 12, 2005

KIEV 0 The Constitutional Court of Ukraine has ruled that only the people of
Ukraine have the right to decide the Ukrainian constitutional system, which
is laid down in the Constitution, and also to make any changes to the
fundamental law as per Section 13 of the Constitution, directly by a
nationwide referendum.

The ruling, announced today, quotes Article 5, Part 3 of the constitution
which says that the right to decide or change the constitutional system in
Ukraine is the exclusive right of the people and may not be usurped by its
bodies or officials.

The ruling says that the people's exclusive right to decide or change the
constitutional system of Ukraine may not be appropriated in any form by
the state, its bodies or officials.

Speaking at a news conference, Judge Pavlo Yevhrafov said following the
Constitutional Court's ruling any changes to the constitution must be
approved by a nationwide referendum only.

Meanwhile, the law of Ukraine on transition from a
presidential-parliamentary to a parliamentary-presidential republic will
come into effect on 1 January 2006.

[The law, reducing the powers of the president in favour of parliament and
the prime minister, was passed in parliament last year in a package to
resolve the standoff between the government and the opposition during
Ukraine's Orange Revolution. Under the law the government is to be formed
by whichever party or parties have won parliamentary elections.]  -30-
==============================================================
12.                      HEALTH MINISTER APPOINTED IN UKRAINE

Interfax-Ukraine news agency, Kiev, in Russian, 12 Oct 05
BBC Monitoring Service, UK, in English, Wed, Oct 12, 2005

KIEV - Yuriy Polyachenko has been appointed health minister of Ukraine.
Ukrainian President Viktor Yushchenko signed a decree to this effect
today, the presidential press service has said. The post of health minister
was the last to be filled. Therefore, the president has completed the
cabinet line-up.

Polyachenko was appointed presidential aide on 26 July 2005. From
November 2003 to June 2005 he was employed as deputy secretary of
the Ukrainian National Security and Defence Council.

He previously held the position of first deputy health minister. He worked
for the Ministry of Health from 2001. [Passage omitted]   -30-
==============================================================
                Send in a letter-to-the-editor today. Let us hear from you.
==============================================================
13. UKRAINIAN PROSECUTOR: PRES POISONING MURDER ATTEMPT
Prosecutor: It was not a poisoning, it was an assassination attempt."

Associated Press (AP), Kiev, Ukraine, Wed, October 12, 2005

KIEV -Ukraine's top prosecutor said Wednesday that President Viktor
Yushchenko's dioxin poisoning was aimed at killing him.

The comments by Prosecutor General Svyatoslav Piskun are the bluntest
remarks to date from the prosecutor's office and mark the first time that
prosecutors have called the poisoning an assassination attempt against
Yushchenko, who was at the time the opposition leader and presidential
candidate.

"It was not a poisoning, it was an assassination attempt," Piskun said.
"We have absolutely proven that Yushchenko was poisoned with the aim
of murder."

Yushchenko has long maintained that the massive dioxin poisoning he
suffered during last year's bitter presidential race was an attempt to kill
him. Yushchenko was knocked off the campaign trail for weeks, and his
face was left severely pockmarked.

No one has been charged in connection with the poisoning, though
Yushchenko maintains that the investigation is proceeding and that those
responsible will face justice.

Piskun spoke Wednesday during a meeting with activists from the new
political party Pora, a youth movement that was one of the main organizers
of the Orange Revolution demonstrations that helped usher Yushchenko into
power.  -30-  [The Action Ukraine Report (AUR) Monitoring Service]
==============================================================
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==============================================================
14. UKRAINE'S TOP PROSECUTOR THREATENS COURT FIGHT IF FIRED

Associated Press (AP), Kiev, Ukraine, Wed, October 12, 2005

KIEV - Ukraine's beleaguered top prosecutor said Wednesday that he will
fight in the courts to keep his job if fired - an apparent warning to
President Viktor Yushchenko.

"One must not fire a person, even a street cleaner without legal grounds,"
said prosecutor General Svyatoslav Piskun.

Yushchenko last week appointed one of Piskun's biggest critics, Serhiy
Holovatiy, as justice minister, and Holovatiy has since called for Piskun's
ouster. Yushchenko has not commented publicly on the spat between the two
men.

Analysts have suggested that if fired, Piskun could become a prominent ally
of ousted Prime Minister Yulia Tymoshenko and an aggressive critic of
Yushchenko and the president's circle.

This week, Piskun's office launched two investigations targeting Petro
Poroshenko, a close ally of the president and former head of the Security
and Defense Council.

Piskun became a political headache for former President Leonid Kuchma,
who fired him from the top prosecutor's job in 2003. Piskun challenged it,
and a court last December ordered he be reinstated.  -30-
==============================================================
15.     TEN COMPANIES TO BID FOR LARGE UKRAINE STEEL MILL

Associated Press (AP), Kiev, Ukraine, Wed, Oct 12, 2005

KIEV, Ukraine - Ten companies are expected to bid for a majority stake in
Ukraine's biggest steel mill later this month, in what could become the
biggest privatization auction in this ex-Soviet republic's history, the
prime minister said Wednesday.

Yuriy Yekhanurov did not identify the companies participating in the Oct. 24
auction and the government has refused to release a full list.

But among the companies widely expected to bid for the 93.02 stake in the
Kryvorizhstal mill are Netherlands-based Mittal Steel Co., Russia's OAO
Severstal, and the US Steel Corp., according to Ukrainian media reports.

"We have 10 real challengers," Yekhanurov was quoted as saying by the
Ukraine-Interfax news agency at the beginning of a Cabinet session.

The starting price was set at $2 billion, well above the $800 million paid
last year by a consortium partly owned by former President Leonid Kuchma's
son-in-law. After a long legal battle, the government seized control of the
mill in June, calling the earlier sale an outright theft.

Kryvorizhstal produces more than 20 percent of all metallurgical products in
Ukraine. When it was sold last year, some of the world's largest steel
companies, including Severstal and U.S. Steel, cried foul after their bids
were rejected.

President Viktor Yushchenko had made the re-privatization of Kryvorizhstal a
campaign issue during last year's Orange Revolution. The cash-strapped
government desperately needs the income from the sale to help fund next
year's budget, experts say.   -30-
==============================================================
16.   TURKMEN LEADER DEMANDS UKRAINE PAY FOR MILLIONS
                                       OF DOLLARS WORTH OF GAS

Associated Press (AP), Ashgabat, Turkmenistan, Wed Oct 12, 2005

ASHGABAT, Turkmenistan - Turkmenistan's president told Ukrainian
officials Wednesday that their country must pay for nearly half a billion
dollars (euros) worth of natural gas, criticizing them in comments shown on
state-run television.

President Saparmurat Niyazov told Ukraine's fuel and energy minister and
the head of its national oil and gas company that Ukraine has made good
on only US$8.7 million (euro7.25 million) out of US$484 million (euro403
million) it is to pay through barter for gas supplied during the first half
of 2005.

"It's no good to fool us this way; you keep giving your word that you will
pay the debt, but you don't do anything about it," Niyazov said. He said
that if the debt is not paid by the end of the year, Ukraine will have to
pay in cash at US$44 (euro36.64) for 1,000 cubic meters (35,310 cubic
feet) of gas.

Niyazov also said projects Ukraine is supposed to be carrying out in the
Central Asian nation in exchange for natural gas, such as the construction
of a bridge over the Amu Darya river, are moving slowly.

Naftohaz Ukraine chief Alexiy Ivchenko said it had been determined what
supplies Ukraine would send Turkmenistan to pay for US$243 million (euro202
million) of the debt and that the shipments would be made by the end of the
year.

Under an agreement between the two ex-Soviet republics, Turkmenistan is to
supply Ukraine with 36 billion cubic meters (1.26 trillion cubic feet) of
gas in 2005. The price is US$58 (euro48.30) per 1,000 cubic meters in the
first six months, half of which was supposed to be paid in kind, and US$44
(euro36.64) per 1,000 cubic meters -- in cash -- as of July 1.

Ukraine's prime minister is to visit Turkmenistan later this month to
discuss future gas deliveries and other issues. Ukraine relies heavily on
gas from Turkmenistan and Russia, and has been involved in disputes with
both countries over supplies and payment.  -30-
==============================================================
17.  REGAL PETROLEUM WINS BACKING FROM UKRAINIAN COURT

By Maggie Urry, Financial Times
London, United Kingdom, Thursday, October 13 2005

LONDON - Regal Petroleum, the troubled oil exploration and production
group, yesterday won a law case in Ukraine that confirmed its ownership of
production licences in the country.

The latest twist in the Regal saga lifted its shares 13½p to 126½p, still
less than the 390p at which the group placed shares with investors in April.

The case had been brought by Regal's former joint venture partner,
Chernihivnaftogasgeologia (CNGG), a Ukrainian state-owned company,
which claimed a share of the assets.

Rex Gaisford, the chief executive appointed after Frank Timis, Regal's
founder and former chief executive was ousted in June, said: "We are very
pleased with this decision, which concludes the dissolution of the
joint-venture".

He said it showed that the legal system in Ukraine "is able to enforce
internationally recognised business principles for foreign companies". Mr
Gaisford said Regal remained "committed to our business in Ukraine and
to developing what we believe are world-class assets."

It is understood that CNGG could appeal to a higher court but Regal said
it would be unlikely to succeed having failed in the Kiev court.

Regal is now looking for a partner, expected to take a stake of up to 25 per
cent in the Ukrainian assets, to help develop the fields.

A recent audit found proved and probable reserves amounted to 169m
barrels of oil equivalent.

The group is also planning to drill a second well to investigate its
Romanian acreage by the end of 2005 and to begin exploration of its
Egyptian assets in the first quarter of 2006.

Regal retains much of the cash raised through the April placing, which
netted the company £42.6m. The funds will largely be used to finance
development in Ukraine and Romania.

Earlier this year, Regal was disappointed when its main Greek exploration
project, the Kallirachi 2 well, failed to find oil.

The news, shortly after the placing, caused the share price to plunge and
led to Mr Timis's departure. He recently bought more shares in Regal when
the threat of the Ukrainian law suit cut the share price to 88p.  -30-
==============================================================
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==============================================================
18.          PM YEKHANUROV TO DISCUSS UKRAINE'S MEMBERSHIP
                                       IN WTO IN SOME WEEKS IN USA

Intefax-Ukraine, Kyiv, Ukraine, Wed, Oct 12, 2005

KYIV - Ukraine's Premier Yuriy Yekhanurov will visit the USA in a few weeks
and the main part of the visit will be dedicated to the talks on Ukraine's
membership in the World Trade Organization, head of the US
congressmen's delegation Jim Colby has said.

At a press conference in Kyiv on Wednesday, Colby said that during the
Yekhanurov's visit the talks on this issue will be held with the US trade
representative and technical experts.

At the same time, commenting on signing the treaty on mutual access to the
US and Ukraine's markets during Yekhanurov's visit, Colby said it was a
great idea and a nice expectation, but none of the sides had expressed its
position as to the specific date or deadline for signing the treaty, in
particular about the possible signing during the premier's visit. -30-
==============================================================
19.     AD HOC GROUP FOR UKRAINE'S WTO MEMBERSHIP TO MEET
                                  BEFORE DECEMBER CONFERENCE
                           Cannot meet now as Ukraine is still unprepared

Interfax-Ukraine, Kyiv, Ukraine, Wed, Oct 12, 2005

KYIV - The ad hoc group for Ukraine's WTO membership will meet before
the WTO conference in December.

However, the sitting is still being postponed because the Ukrainian side is
still unprepared, Economics Minister Arseniy Yatseniuk has said.

"There will be an ad hoc group sitting before the Hong Kong [conference]
anyway, but the date is being postponed because we must go there with
something, not just with empty hands and claims that we have liberalized
something," Yatseniuk said to the journalists on Wednesday.

The minister stressed, that for the WTO's decision on Ukraine's membership,
it is necessary to complete bilateral negotiations, pass a number of
internal laws and pass some technical procedures.

"Only then will Hong Kong make the final decision," Yatseniuk said. -30-
==============================================================
20.        UKRAINIAN PRESIDENT DISCUSSES WTO MEMBERSHIP
     WITH US CONGRESSIONAL DELEGATION HEADED BY JIM COLBY

UNIAN news agency, Kiev, in Ukrainian 1609 gmt 12 Oct 05
BBC Monitoring Service, UK, in English, Wed, Oct 12, 2005

KIEV - Ukrainian President Viktor Yushchenko has discussed with US
congressmen Ukraine's accession to the World Trade Organization and the
efforts of the USA, Lithuania and Ukraine to advance democracy in Belarus.

The head of the delegation of US congressmen, Jim Colby, was speaking
at a news conference in Kiev today, a UNIAN correspondent reports.

According to Jim Colby, the progress of judicial reform in Ukraine was also
discussed at the meeting. "Because we arrived in Kiev from Lithuania, the
state of democracy in Belarus was discussed, as well as the joint efforts of
the USA, Lithuania and Ukraine to advance democracy in that country," the
congressman said.

The delegation of US congressmen also met Ukrainian Prime Minister Yuriy
Yekhanurov. Jim Colby pointed out that adequate progress had been made in
Ukraine in the past nine months as regards political and economic
transformations.

"We understand that dramatic events were taking place, such as the change
of the authorities in December (2004), and expectations are therefore very
high," he said.

He also added that "when you get down to doing a messy job, such as making
political decisions, it is difficult to implement them".

According to Jim Colby, the USA continues supporting the reforms that are
being implemented by the Ukrainian government.  -30-
==============================================================
21.        "A GREAT TRAGEDY" - FILM ABOUT UKRAINE'S ORPHANS
                                  High quality DVD can be purchased

United Orphaned Children's Fund of Pennsylvania (UOCFP)
Plymouth Meeting, Pennsylvania, Wednesday, October 12, 2005

PLYMOUTH MEETING, PA - The United Orphaned Children's Fund of
Pennsylvania (UOCFP) proudly announces that the new film "A Great
Tragedy" has been completed. This emotional movie about the plight of
orphans was filmed in Ukraine in June 2005.

The DVD is 30-minutes long, filmed in vivid color accompanied by a great
soundtrack. As it won't be mass-produced, the cost is a little high, but
well worth it. This very high quality DVD is $20.00 plus $5.00 for shipping.

The UOCFP is a grassroots, regional and volunteer only non-profit
organization based just outside of Philadelphia. It was established to help
disadvantaged orphaned children and youth in the country of Ukraine.

"We are advocates of these orphans," says UOCFP Executive Director
Steve Vetterlein, "and we will do anything possible to improve the quality
of life for them and work to help provide them with the necessary tools
for a future".

The UOCFP was incorporated in July of this year, but has been functioning
as a small charity since 2002, when Mr.Vetterlein and Ukrainian Olexandra
Hnypiouk founded it. It is not affiliated with any religious, political or
any other non-profit organization.

"We are in the final stage of becoming a 501(c)(3) registered charity with
the IRS, and we had to do all the work ourselves, as we couldn't afford an
attorney or an accountant. We are not rich people living off of big trust
funds with nothing else to do. We all work various jobs, and we do this when
we can.

But pretty much everything we do is done by ourselves, even this movie."
Incidentally, Seabreeze Productions, who produced the film, is Steve's
venture. "One of my many wishes, and one of the reasons for making the
film, is to get more people involved."

Vetterlein's dream to help these orphans began in 1999, while watching a
TV show that was about the group "Help Us Help The Children"(HUHTC)
in Toronto, Canada. "I was so compelled to do something.

But it did not dawn on me what to do exactly until one very memorable dinner
on a very stormy night nearly 8 months later. I was having dinner with a new
founded friend (Olexandra), and we both got into such a deep and passionate
conversation about this topic."

"As I had ridden in (22) MS-150 Bicycle rides for the National MS Society to
raise funds for people afflicted with MS, and even worked on the planning
committees, why not do a bike ride to raise funds and world awareness for
these kids?"

In an effort to raise funds for HUHTC as well as raise world awareness for
the broader cause, in the summer of 2000 Olexandra and Steve did the ride.
Starting in Paris, they rode across France, Germany, Poland and then into
Western Ukraine.

You can read about this trip in their book, called "Mountains of Grace"
(Xlibris Publishing). Steve returned to Ukraine in 2002, spending another 2
weeks at the HUHTC summer camp for orphans high up in the Carpathian
Mountains of Western Ukraine.

"This year (2005) I returned once again, and had the pleasure to visit a
different summer camp called Forest Bell and also the Koropets Orphanage,
which houses 229 children from the ages of 4 up to 18.This was obviously a
well run institution, and the amazing 60 something woman who runs it was
truly doing a wonderful job.

But due to lack of funds, the place is all patched up and is in a sad state
of falling apart. It needs windows replaced, the main pipe coming in from
the town for the heating system needs to be replaced, and the bathrooms
are sickening.

When we walked into one of the buildings the kids live in, the smell of
human waste penetrated the air. There was obviously no ventilation at all.

One of the buildings had such a huge hole in the ceiling from major water
damage; it looked like the whole ceiling was about to collapse at any
moment. Plus the beds are so old, with the mattresses all worn out, and
there was no place for the kids to put anything, with 4 to 6 of them cramped
into one small room".

"Our new film was shot during this trip, and was edited over the summer
months. You will get to see many of these remarkable orphans, plus learn a
little about them. And they will entertain you, as they had put on such an
incredible talent show just for us. If you could only meet these absolutely
wonderful kids, you would also be compelled to want to help them just as
much as we do".

The DVD is 30-minutes long, filmed in vivid color accompanied by a great
soundtrack. As it won't be mass-produced, the cost is a little high, but
well worth it. This very high quality DVD is $20.00 plus $5.00 for shipping.

"We would be happy to make a presentation for organizations wishing to
screen the film, show the movie and answer your questions. We are actively
trying to make a difference in Ukraine, and if you have the opportunity to
see this movie or our web site, you can view all of our projects. This film
was a major effort for us, and your support is greatly needed."

In 2006, the UOCFP hopes to do much more if they can raise the funds to
continue their work. "There is so much that needs to be done, but
unfortunately it is extremely hard to raise money. We can only hope that
when you see these children, you will be inspired to want to get involved".
------------------------------------------------------------------------------------------------------
CONTACT: The UOCFP, 614 Treaty Road, Plymouth Meeting,
PA 19462 USA; http://www.uocfp.org
==============================================================
22.                       THE UKRAINIAN BANDURIST CHORUS
                       Performing in Western Canada November 2005

Anatoli W. Murha, President, Ukrainian Bandurist Chorus
Warren, Michigan, Thursday, October 13, 2005

WARREN, Michigan - The Ukrainian Bandurist Chorus returns to Canada’s
West Coast and Prairies this November. Performing in its’ 87th season, this
International Award winning ensemble led by Conductor and Artistic Director
Oleh Mahlay, will present concerts in Vancouver and Vernon, British
Columbia; Edmonton and Calgary, Alberta; Saskatoon and Regina,
Saskatchewan; and Winnipeg, Manitoba.

Coinciding with their 41st and latest recording release “Bayda: A tribute to
four centuries of Kozak Heroism”, these critically acclaimed artists will
entertain and enchant audiences in a musical experience not to be missed.

Founded in 1918, the Ukrainian Bandurist Chorus has a long and storied
history on the international stage showcasing the Bandura, a unique and
complex 60 stringed instrument.

The dynamic and versatile sounds of the Bandura accompany and
compliment the Chorus’ wide variety of repertoire from Classical Opera
and Sacred Liturgical works to English, German, and Ukrainian choral
music.

Since emigrating from Europe in 1949, the Ukrainian Bandurist Chorus is
primarily based in the metro-Detroit area, but has expanded to include
members from British Columbia, Alberta, Saskatchewan, Manitoba,
Ontario, Nova Scotia, California, Maryland, Michigan, New York, New
Jersey, Ohio, and Pennsylvania.

The majority of today’s Chorus members are 2nd and 3rd generation
Americans and Canadians. While developing and auditioning new and
virtuosic young musicians and vocalists, the Ukrainian Bandurist Chorus
continues to captivate and delight audiences in major concert halls across
the United States, Canada, Europe, Australia, and Ukraine.

Professional calibre performers, all musicians, singers and administration
are volunteers, ages 16 to 76, sharing a common passion for their music
and heritage. Share your passion with us.

VANCOUVER: Saturday, November 5
Kay Meek Centre; Tickets at Festival Box Office
(604) 257-0366 or Toll Free 1-888-777-0366
www.festivalboxoffice.com

VERNON: Sunday, November 6
Vernon & District Performing Arts Centre
Tickets at Ticket Seller (250) 549-SHOW (7469)
www.ticketseller.ca

EDMONTON: Monday, November 7
Winspear Centre; Tickets at Winspear Centre Box Office
(780) 428-1414 or Toll Free 1-800-563-5081;
www.winspearcentre.com

CALGARY: Wednesday, November 9
Knox United Church; Tickets at all Ticketmaster outlets
Phone (403) 777-0000; www.ticketmaster.ca

SASKATOON: Thursday, November 10
Third Avenue United Church; Tickets at all Ticketmaster
outlets; Phone (306) 938-7800 (Saskatoon) or
Toll Free 1-800-970-7328: www.ticketmaster.ca

REGINA: Friday, November 11
Regina Performing Arts Centre
Tickets at Regina Performing Arts Centre
(306) 779-2277 or email; RPACboxoffice@sasktel.net

WINNIPEG: Saturday, November 12
Burton Cummings Theatre; Tickets at all Ticketmaster outlets
Phone (204) 780-3333; www.ticketmaster.ca
---------------------------------------------------------------------------------------------------
Ukrainian Bandurist Chorus, Anatoli W. Murha - President
LINK: http://www.bandura.org
==============================================================
23. UKRAINIAN PARTISAN VETERANS CANCEL BIG KIEV PARADE AMID
     PROTEST THREATS FROM RED ARMY VETERANS AND COMMUNISTS

AP Worldstream, Kiev, Ukraine, Wed, Oct 12, 2005

KIEV - Ukrainian partisans who fought both Soviet and Nazi forces in World
War II canceled plans for a big parade in Kiev amid threats of protests from
Red Army veterans and Communists, officials said Wednesday.

Partisans who call themselves the Ukrainian Insurgent Army had planned to
march through the Ukrainian capital on Friday to mark the 63rd anniversary
of the group's founding.

But Communists had sought to hold a competing rally, inviting Red Army
veterans, and lawmakers called for the celebrations to be held in western
Ukraine, where support for the organization is higher.

"It's senseless to bring these 80-year-old men to Kiev and march them down
Kreshchatyk past protesting Communists," said lawmaker Oleksandr Gudyma
from the nationalist Ukrainian People's Party, referring to the Ukrainian
capital's main street.

Hostility toward the partisans runs deep in Ukraine because in the war's
early years, the partisans were anti-Soviet and sought support from the
Nazis as part of their bid to create an independent Ukrainian state.

The country was overrun by the Nazis before the Red Army drove the
Germans out. Some 3.8 million Red Army veterans are still living, along
 with about 10,000 partisans.

Orest Vaskul, who heads the partisans' Kiev branch, said the group had
decided to put the march on hold, but said they might still hold a smaller
demonstration in Kiev.

Gudyma said the western city of Lviv would host a concert on Friday to fete
partisan veterans.   -30-  [The Action Ukraine Report Monitoring Service]
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