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Action Ukraine Report

"THE ACTION UKRAINE REPORT"
In-Depth Ukrainian News, Analysis, and Commentary

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

"THE ACTION UKRAINE REPORT" Year 04, Number 106
Action Ukraine Coalition (AUC), Washington, D.C.
Ukrainian Federation of America (UFA), Huntingdon Valley, PA
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C.; Kyiv, Ukraine, TUESDAY, June 29, 2004

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

1. RACE AGAINST TIME TO COMPENSATE NAZI-ERA SLAVE LABORERS
Most of the 1.6 million recipients concerned live in
Belarus, Poland, Russia, Ukraine and the Czech Republic.
Deutsche Welle, Berlin, Germany, Friday, June 25, 2004

2. VIKTOR YUSHCHENKO SAYS HE WILL ENTER
UKRAINIAN PRESIDENTIAL RACE
By Aleksandar Vasovic, AP Online, Kiev, Ukraine, Jun 28, 2004

3. UKRAINIAN LEADER VIKTOR YUSHCHENKO PREVENTED
FROM SPEAKING IN EASTERN CITY OF DNIPROPETROVSK
UNIAN news agency, Kiev, Ukraine, in Ukrainian, 28 Jun 04
BBC Monitoring Service,UK, in English, Monday, Jun 28, 2004

4. "VIKTOR YUSHCHENKO LINES UP HIGH-PROFILE TEAM"
By Taras Kuzio, Visiting Professor, Elliott School of International Affairs
George Washington University, Washington, D.C.
EURASIA DAILY MONITOR, The Jamestown Foundation
Washington, D.C., Volume I, Issue 40, Monday, 28 June 2004

5. PRESIDENT KUCHMA ARRIVES IN ISTANBUL FOR NATO
SUMMIT WITH LARGE UKRAINIAN DELEGATION
Marchuk, Hryshchenko, Radchenko, Medvedchuk and Lyovochkin
UNIAN news agency, Kiev, Ukraine, in Ukrainian, 28 Jun 04
BBC Monitoring Service, UK, in English, Monday, Jun 28, 2004

6. UKRAINIAN PRESIDENT MARKS CONSTITUTION DAY,
SAYS TIME RIPE FOR CONSTITUTIONAL REFORM
UT1, Kiev, Ukraine, in Ukrainian, 28 Jun 04
BBC Monitoring Service, UK, Monday, Jun 28, 2004

7. UKRAINIAN MEMBERS OF PARLIAMENT SET UP PROTEST
TENT CAMP OVER CONSTITUTION REFORM BILL
Interfax-Ukraine news agency, Kiev, in Russian, 28 Jun 04
BBC Monitoring Service, UK, in English, Monday, Jun 28, 2004

8. "TBILISI SCENARIO" POSSIBLE IN UKRAINE?
OPINION: RIA Novosti press conference by Sergei Markov
RIA Novosti, Moscow, Russia, Monday, June 28, 2004

9. LNM GROUP, RINAT AKHMETOV COMPETE FOR 92% IN
UKRAINE'S LARGEST COAL PRODUCER
By Oleh Borsuk and Geoffrey T. Smith
Dow Jones Newswires, Kiev, Ukraine, Thursday, June 24, 2004 .

10. CANADIAN COOPERATIVE ASSOCIATION (CCA) TO
STRENGTHEN CREDIT UNIONS IN UKRAINE
e-POSHTA, Vol 5, No. 33, Sunday, June 27, 2004
Bohdan Kozy, Canadian Co-operative Association (CCA)
Ottawa, Canada, Wednesday, May 19, 2004

11. STATEMENT FROM JOHN KERRY IN ANTICIPATION OF
UKRAINIAN CONSTITUTION DAY AND 40TH ANNIVERSARY
OF THE TARAS SHEVCHENKO MONUMENT IN WASHINGTON, D.C.
John Kerry for President, Inc., Washington, D.C., Saturday, June 26, 2004

12. UKRAINE: ADOPTION STILL A SLOW AND PAINFUL PROCESS
By Yulianna Vilkos, Kyiv Post Staff Writer
Kyiv Post, Kyiv, Ukraine, Thursday, May 27, 2004

13. "PEASANTS WITH PROMISE: UKRAINIANS IN
SOUTHEASTERN GALACIA, 1880-1900"
Book by Stella Hryniuk, Canadian Institute of Ukrainian Studies Press
University of Toronto, Toronto, Ontario, Canada, Monday, June 28, 2004

14. "NOT WORTHY:
Walter Duranty's Pulitzer Prize and The New York Times
By E. Morgan Williams, Publisher and Editor
"THE ACTION UKRAINE REPORT", Washington, D.C., June 28, 2004

15. UKRAINE: THE PRESIDENT AND THE JOURNALIST'S SHADOW
New revelations regarding the killing of journalist Georgy Gongadze reveal a
government cover-up on a massive scale, including possible multiple murders.
By Ivan Lozowy, Transitions Online (TOL)
Prague, Czech Republic, Monday, 28 June 2004
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER ONE
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1.RACE AGAINST TIME TO COMPENSATE NAZI-ERA SLAVE LABORERS
Most of the 1.6 million recipients concerned live in
Belarus, Poland, Russia, Ukraine and the Czech Republic.

Deutsche Welle, Berlin, Germany, 25.06.2004

BERLIN - Financial compensation to former Holocaust-era forced laborers
will be completed ahead of the 60th anniversary of the defeat of Nazi
Germany next May. The foundation responsible for the payments is running
out of time.

The German Foundation "Erinnerung, Verantwortung und Zukunft" (EVZ) --
or "Remembrance, Responsibility, and Future" -- wants to complete the final
compensation payments to former slave laborers during the Nazi era by
mid-2005.

Board of trustees chairman Dieter Kastrup called the fund's work "a success
story", as it faced a race against time. "Many victims are now in their
seventies and eighties," he said in Berlin on Thursday. The feedback from
those who had already received contributions had been overwhelming, he
added.

So far, some Euro3 billion ($3.6 billion) have been distributed to victims
by partner organizations such as the Jewish Claims Conference (JCC) and the
International Organization for Migration (IOM). Most of the 1.6 million
recipients concerned live in Belarus, Poland, Russia, Ukraine and the Czech
Republic.

EXTRA FUNDS RELEASED

The board said it will mobilize an additional Euro300 million in order to
meet a funding shortfall. This money stems from interest earned on the
original settlement with the German government and industry.

The Foundation's partner organizations had succeeded in documenting more
slave labor cases than had been originally estimated. This resulted in a
shortage of funds needed to pay former slave laborers the maximum amount
allowed under the German law governing the Foundation, 15,000 deutsche
marks (Euro7,669.38). However, EVZ said it will have to cut back payments
to heirs.

Approximately five to 15 percent of former forced and slave laborers cannot
be compensated because they have died in the meantime or cannot be located.

The JCC and the IOM will receive the largest share of the funds, Euro143.8
million and Euro125.6 million, respectively. The IOM is responsible for
compensating non-Jewish victims outside of central and eastern Europe. Some
Euro14.1 million will go to Russian partner foundations.

DISTRIBUTION RUNNING SMOOTHLY

EVZ was created in 2000 through a joint initiative by German industry and
the Berlin government. Both contributed Euro 2.5 billion each for a special
fund to compensate former forced and slave laborers during World War II.

The deal with victims' organizations was that German companies
contributing to the fund would in the future be safe from additional claims
and litigation. This especially applied to class-action suits against German
banks and companies pending in the United States.

Earlier compensation payments had been tainted by misuse. But the board of
directors said cooperation with their partner organizations was now going
smoothly without any major irregularities in distributing the money.

Hans-Otto Brautigam, the EVZ's newly-elected managing director and former
justice minister in the federal state of Brandenburg said he was working
towards making the efforts of his team more public inside Germany. [DW
Staff (sac)] (END)
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http://www.dw-world.de/english/0,3367,1430_A_1246411_1_A,00.html
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER TWO
Current Events Gallery: http://www.artukraine.com/events/index.htm
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2. VIKTOR YUSHCHENKO SAYS HE WILL ENTER
UKRAINIAN PRESIDENTIAL RACE

By Aleksandar Vasovic, AP Online, Kiev, Ukraine, Jun 28, 2004

KIEV - Ukraine's most popular politician, the Western-leaning opposition
leader Viktor Yushchenko, made the long-awaited announcement Monday
that he would run in the October presidential election to replace President
Leonid Kuchma.

"As I received backing from Our Ukraine and other parties ... I have decided
to enter the campaign," Yushchenko said, according to a party statement. At
a press conference in the eastern city of Hryvyi Rih, Yushchenko insisted
that "the campaign will be a battle between (the current) authorities and
the people, instead of between political parties."

Yushchenko's candidacy papers will be submitted July 3, the campaign's
official start, his party had said earlier this month when Yushchenko named
a campaign manager in what was seen as a low-key acknowledgment of his
intentions.

Yushchenko's key opponent in the Oct. 31 vote is expected to be Prime
Minister Viktor Yanukovich, who received Kuchma's backing in April.
Although the Constitutional Court ruled he could run, Kuchma has repeatedly
said he will not seek re-election.

Opposition politicians have repeatedly blamed Kuchma and his regime for
weakening Ukraine's fledgling democracy and cracking down on media freedom.
Kuchma's decade-long rule has been plagued by corruption scandals and the
unsolved deaths of political opponents and independent journalists.

According to recent opinion polls, 37 percent of Ukrainians would support
Yushchenko while 26 percent will vote for Yanukovich. A runoff will decide
the election if no candidate receives 50 percent of the vote.

Also Monday, under the slogan "Tent city: protection of the constitution,"
four opposition deputies set up tents in front of the national parliament to
protest against constitutional amendments that would strip future presidents
from wielding real power.

Last week, Kuchma's allies in the 450-seat parliament endorsed a first
reading of the bill which calls for the president to be appointed by
parliament rather than chosen by the electorate beginning in 2006. Bills
have to be passed in three readings before going to the president for his
signature. The opposition is hopeful that Kuchma's allies won't be able to
muster the two-thirds majority required for the final vote.

Kuchma loyalists in April failed to gather enough votes, but the ruling
party submitted a new, slightly modified draft of the bill last month.

The opposition, which thinks it has a strong chance of winning the Oct. 31
presidential race, claims the proposed amendments would weaken democracy
by shortening the new president's term and would deprive voters of their
right to elect a new leader. The opposition also fears that Kuchma's allies
could take back the presidency in 2006. Western governments and other
organizations have also criticized efforts to change the constitution ahead
of this year's election. (pvs/av/mb) (END)
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER THREE
Ukrainian Culture Gallery: http://www.ArtUkraine.com/cultgallery.htm
==========================================================
3. UKRAINIAN LEADER VIKTOR YUSHCHENKO PREVENTED
FROM SPEAKING IN EASTERN CITY OF DNIPROPETROVSK

UNIAN news agency, Kiev, Ukraine, in Ukrainian, 28 Jun 04
BBC Monitoring Service,UK, in English, Monday, Jun 28, 2004

DNIPROPETROVSK - Around 100 representatives of the [pro-presidential]
United Social Democratic Party and the Party of the Regions blocked the
steps in front of the opera house in [the eastern city of] Dnipropetrovsk on
the evening of 27 June. [Centre-right opposition bloc] Our Ukraine leader
Viktor Yushchenko was due to speak on the square in front of the opera
house.

An UNIAN correspondent reports that officials from the Dnipropetrovsk
regional administration including deputy governors were present on the
square. Representatives of the USDP and Party of the Regions, mainly young
people, were holding party flags and portraits of [Prime Minister] Viktor
Yanukovych.

[Yanukovych, the leader of the Party of the Regions, has been nominated as
the single presidential candidate in this autumn's presidential election
from the pro-presidential coalition in parliament.] They waited for about an
hour for Yushchenko, who was planning to meet Dnipropetrovsk residents on
the square, chanting "Yushchenko out!" Meanwhile, Yushchenko's supporters
were chanting his name.

According to the press service of the local branch of Our Ukraine,
Yushchenko and some Our Ukraine MPs were laying flowers at the memorial
to students of Dnipropetrovsk National University who were killed in WW II.
At around 2000 [1700 gmt], Yushchenko arrived on the square in front of
the opera house, but he was prevented from speaking.

Yushchenko's press secretary, Iryna Herashchenko, said that he and the MPs
who accompanied him to Dnipropetrovsk were prepared for this eventuality.
She said that this was "intimidation of Yushchenko ahead of the presidential
elections".

[Yushchenko is expected to run in the presidential election. The campaign
begins officially on 3 July. Herashchenko said on 27 June that the
government has been trying to disrupt Yushchenko's tour of the regions in
the run-up to the campaign - see Era, Kiev, in Ukrainian 0900 gmt 27 Jun
04.] (END)
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER FOUR
Current Events Gallery: http://www.artukraine.com/events/index.htm
=========================================================
4. VIKTOR YUSHCHENKO LINES UP HIGH-PROFILE ELECTION TEAM

By Taras Kuzio, Visiting Professor, Elliott School of International Affairs
George Washington University, Washington, D.C.
EURASIA DAILY MONITOR, The Jamestown Foundation
Washington, D.C., Volume I, Issue 40, Monday, 28 June 2004

On the eve of the official July 3 launch of the 2004 Ukrainian presidential
elections, front-runner Viktor Yushchenko announced three important steps in
his campaign strategy. The three-pronged approach will help Yushchenko
consolidate a wide-embracing election campaign against his main opponent,
Prime Minister Viktor Yanukovych, the candidate backed by President Leonid
Kuchma's allies.

First, on June 14, First Deputy Parliamentary Speaker Oleksandr Zinchenko
became Yushchenko's election campaign director. Zinchenko's contacts with
Yushchenko began in early 2003 with secret negotiations between the
"constructive" wing of the Social-Democratic Party of Ukraine-United (SDPUo)
and Yushchenko's "Our Ukraine." These negotiations became public later that
year (Ukrayinska Pravda, November 25, 2003).
"--------------------------------------------------------"
NOTE: To read the entire article by Taras Kuzio please click on:
http://www.jamestown.org/publications_details.php?volume_id=401&issue_id=300
0&article_id=2368162 [paste link together] or (http://www.jamestown.org)
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER FIVE
Current Events Gallery: http://www.artukraine.com/events/index.htm
=========================================================
5. PRESIDENT KUCHMA ARRIVES IN ISTANBUL FOR NATO
SUMMIT WITH LARGE UKRAINIAN DELEGATION
Marchuk, Hryshchenko, Radchenko, Medvedchuk and Lyovochkin

UNIAN news agency, Kiev, Ukraine, in Ukrainian, 28 Jun 04
BBC Monitoring Service, UK, in English, Monday, Jun 28, 2004

KIEV -President Leonid Kuchma has arrived in Istanbul on a two-day working
visit and will take part in a meeting of the Ukraine-NATO commission within
the framework of the NATO summit [in Istanbul on 28-29 June].

Kuchma is accompanied by Defence Minister Yevhen Marchuk, Foreign Minister
Kostyantyn Hryshchenko, National Security and Defence Council Secretary
Volodymyr Radchenko and presidential administration head Viktor Medvedchuk,
and also by his first aide, Serhiy Lyovochkin.

Kuchma will today hold bilateral meetings with Italian Prime Minister Silvio
Berlusconi and Macedonian President Branko Crvenkovski. This evening, Kuchma
will attend a gala concert and a banquet in honour of the heads of state of
the countries attending the summit.

Tomorrow Kuchma will meet Slovak President Ivan Gasparovic and Dutch Prime
Minister Jan Peter Balkenende. The same day Kuchma will meet NATO Secretary
General Jaap de Hoop Scheffer and address a meeting of the Ukraine-NATO
commission.

It is expected that US President George Bush will take part in the meeting
of the Ukraine-NATO commission. Kuchma returns to Kiev on 29 June. (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER SIX
Check Out the News Media for the Latest News From and About Ukraine
Daily News Gallery: http://www.artukraine.com/newsgallery.htm
=========================================================
6. UKRAINIAN PRESIDENT KUCHMA MARKS CONSTITUTION DAY,
SAYS TIME RIPE FOR CONSTITUTIONAL REFORM

UT1, Kiev, Ukraine, in Ukrainian, 28 Jun 04
BBC Monitoring Service, UK, Monday, Jun 28, 2004

KIEV - Today is Constitution Day. President Leonid Kuchma greeted
Ukrainians on the state holiday. His greeting says that the adoption of the
basic law marked the fundamental consolidation of our independence and
inscribed forever the will of the Ukrainian people to live in its own
sovereign state.

The basic law is the determining factor for ensuring the state sovereignty
of Ukraine, consolidating society and creating the appropriate conditions
for the self-realization of individuals.

But times change, and now it is necessary to implement political reform, the
goal of which is to create an up-to-date and effective model of state
administration that corresponds to the logic of state development and our
aspiration to join the family of European nations, its says in Kuchma's
greeting.

[Parliament on 23 June gave initial approval to a bill on amending the
constitution that would transfer powers from the presidency to the
parliament. The opposition says its adoption will allow the current
authorities to retain power regardless of the outcome of this autumn's
presidential election.] (END)
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER SEVEN
The Genocidal Famine in Ukraine 1932-1933, HOLODOMOR
Genocide Gallery: http://www.artukraine.com/famineart/index.htm
=========================================================
7. UKRAINIAN MEMBERS OF PARLIAMENT SET UP PROTEST
TENT CAMP OVER CONSTITUTION REFORM BILL

Interfax-Ukraine news agency, Kiev, in Russian, 28 Jun 04
BBC Monitoring Service, UK, in English, Monday, Jun 28, 2004

KIEV - A fourth tent has been erected by MPs protesting against
[government-backed] changes to the constitution outside the parliament
building on Constitution Day [28 June]. The tent was put up by [centre-right
opposition bloc] Our Ukraine MP Yuriy Pavlenko.

The protest outside parliament was initiated by the Youth is Ukraine's Hope
association, the [right-wing] Sobor party and the People's Opposition
association. The first tent, bearing the inscription "No coup!", was erected
on 23 June by Our Ukraine MP Yevhen Zhovtyak. The next day, [opposition]
Yuliya Tymoshenko Bloc MP Andriy Shkil pitched another tent, and on 25 June
a third tent war put up by Yuliya Tymoshenko Bloc MP Levko Lukyanenko.

The organizers of the protest say that the police are not hampering the
protest. [Passage omitted: similar protest was held in March-April 2004]

[On 23 June, the Ukrainian parliament gave initial approval to a
constitutional reform bill which envisages handing many presidential powers
over to parliament. The opposition says that the changes to the constitution
are aimed at keeping President Kuchma and his allies in power. The bill is
to be put to parliament again in autumn after being considered by the
Constitutional Court.] (END)
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER EIGHT
Historical Gallery: http://www.artukraine.com/histgallery.htm
========================================================
8. "TBILISI SCENARIO" POSSIBLE IN UKRAINE?

OPINION: RIA Novosti press conference by Sergei Markov
RIA Novosti, Moscow, Russia, Monday, June 28, 2004

MOSCOW - The Director of the Political Studies Institute, Sergei Markov
believes that "the Tbilisi scenario" might repeat during the presidential
elections in Ukraine on October 31. (Late last year, opposition forces
practically overthrew Georgian President Eduard Shevardnadze, and
early this year, pro-American-minded Harvard graduate Mikhail
Saakashvili became the head of state).

"The Tbilisi scenario might repeat. By our data, such technologies are
being prepared. If on election night the opposition declares that the
elections were held not properly, parliament will be stormed, and anything
may happen," Markov said at a RIA Novosti press conference on Monday.

In the political scientist's words, "Ukrainian elections are the main
political event of 2004 and for Russia." He explained that for Ukraine this
year is the choice of political orientation. "Ukraine will hesitate between
Russia and the West," Markov said.

In his words, two candidates for the post of Ukrainian president are
already known. "The first one is a Polish-American one [the leader of Our
Ukraine party bloc, Viktor Yushchenko], and the second one is
Russian-Ukrainian [Ukrainian Prime Minister Viktor Yanukovich]."

"Yushchenko is under the tough control of American policy. It seems to us
that the main aim of this project is the loss of Ukraine's independence and
the creation of a controllable conflict between Russia and Ukraine," he
noted.

"In case Yushchenko comes, Russia-Ukraine military-technical cooperation
will be ruined, the Russian Black Sea Fleet will be ousted from Ukrainian
territory, and forcible de-Russification will take place. Forces behind
Yushchenko's back will demand that the state authority liquidate the
Ukrainian Orthodox Church," Markov said.

That's why, in his opinion, "the presidential election night will be
sleepless for the Kremlin, Brussels and Washington."

Markov also said that Russia and Ukraine will find it hard to develop
without close cooperation. "Ukraine's drift toward the West does not
contradict Russia's interests. We need to carry out this drift together,"
said the political scientist. (END)
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER NINE
http://www.artukraine.com/buildukraine/index.htm
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9. LNM GROUP, RINAT AKHMETOV COMPETE FOR 92% IN
UKRAINE'S LARGEST COAL PRODUCER

Oleh Borsuk and Geoffrey T. Smith
Dow Jones Newswires, Kiev, Ukraine, Thursday, June 24, 2004 .

KIEV - LNM Group, the world's second-largest steel producer, and
Ukrainian tycoon Rinat Akhmetov are the only two bidders for a 92.1%
stake in Ukraine's largest coal producer, the State Property Fund said
Thursday.

The fund is looking to raise at least $168.7 million from selling the stake
in PavlohradVuhillia JSC, a 30% reduction from its first attempt to sell the
stake earlier this year. The SPF cut the starting price to create greater
interest among potential investors.

Akhmetov is bidding through the Avdeyevskiy Coking Chemical Plant, in
which he indirectly holds a majority stake, according to the SPF.

Only last week, a consortium including Akhmetov won a tender for the SPF's
93% stake in Kryvorizhstal JSC with a bid of $800 million, little over half
of the $1.5 billion bid by LNM. LNM and other foreign bidders repeatedly
criticized the tender for being rigged in favor of insiders like Akhmetov.

The privatization of PavlohradVuhillia is the first ever sale of a coal
mining company in Ukraine , and part of a government plan to restructure an
ailing sector. Government officials say further sales will be postponed
until after the government has merged all remaining state-owned mines into
a single company.

PavlohradVuhillia, which produces 10.3 million metric tons of coal a year,
some 13% of Ukrainian output, lost 133.9 million hryvnias ($1=UAH5.29)
on sales of UAH1.33 billion in 2003. (END)
----------------------------------------------------------------------------
By Oleh Borsuk and Geoffrey T. Smith, Dow Jones Newswires
(+7 095 974 8055); geoffrey.smith@dowjones.com
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER TEN
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10. CANADIAN COOPERATIVE ASSOCIATION (CCA) TO
STRENGTHEN CREDIT UNIONS IN UKRAINE

e-POSHTA, Vol 5, No. 33, Sunday, June 27, 2004
Bohdan Kozy, Canadian Co-operative Association (CCA)
Ottawa, Canada, Wednesday, May 19, 2004

OTTAWA - A celebration at the Ukrainian Embassy in Ottawa today has
formally launched a major credit union development initiative designed to
bring much needed financial services to Ukraine. The event was hosted
by Mykola Maimeskul, Ambassador of Ukraine to Canada.

The 5-year, $4.3 million project will be funded by the Canadian
International Development Agency. It enables the Canadian Co-operative
Association and its partners, the Ukrainian National Association of Savings
and Credit Unions and the Council of Ukrainian Credit Unions of Canada, to
strengthen a network of community-based credit unions to improve services
to over 300,000 members.

This project builds on a decade of highly successful Canadian technical
assistance which has helped to revitalize Ukraine's credit union sector.
Since 1993, some 150 credit unions have been supported by Canada, and
over 100,000 small loans have been made to members, including modest
financing to small business enterprises. The task now is to further
professionalize Ukraine's credit unions to improve access to financial
services -- particularly to productive and agricultural credit -- improve
security to protect member's deposits, and to strengthen the national
federation.

Credit unions were a feature of Ukrainian society until Soviet rule
dismantled this grass-roots movement in favour of state-run financial
institutions. The knowledge and experience of their members and leaders
could not be so easily erased. When Ukraine achieved independence in 1991,
the co-operative finance idea was rekindled. Aided by the re-awakening and
legitimization by the state of this co-operative legacy, and with support
from expatriate credit union leaders in Canada, the United States and
Australia, the credit union movement in Ukraine is taking root once more.

The new project is timely due to the recent passing of laws that regulate
further development of the credit union movement in Ukraine. With
legislation in place, gains made in the previous two CIDA-funded projects
can be consolidated under the newly created regulatory framework, helping
to ensure the sustainability of the institutions created with Canadian
support. For further information, contact:

Bohdan Kozy, Program Manager, Canadian Co-operative Association
275 Bank Street, Suite 400, Ottawa, Ontario K2P 2L6
Tel: (613) 238-6711 ext. 240 or 1-866-266-7677 ext. 240
Fax: (613) 567-0658 e-mail: bohdan.kozy@coopscanada.coop
Website: www.coopscanada.coop
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER ELEVEN
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11. STATEMENT FROM JOHN KERRY IN ANTICIPATION OF
UKRAINIAN CONSTITUTION DAY AND 40TH ANNIVERSARY
OF THE TARAS SHEVCHENKO MONUMENT IN WASHINGTON, D.C.

John Kerry for President, Inc., Washington, D.C., Saturday, June 26, 2004

"I am proud to celebrate the eighth anniversary of the Ukrainian
Constitution. It was on June 28, 1996 that the citizens of Ukraine
consolidated their sovereignty and independence after three quarters of a
century of communist rule. Today, as Ukraine prepares for its upcoming
presidential elections, Ukrainians have the opportunity to demonstrate the
power of democracy in Eastern Europe by selecting their future leader
through elections that fairly and freely reflect the will of the people.

Likewise, Ukraine's economy is one of the fastest growing in Europe, and
by strengthening its commitment to the rule of law and transparency Ukraine
can provide its citizens with a strong sense of hope and opportunity.

"I am also glad for the strong partnership between the United States and
Ukraine. People around the world are safer thanks to the two countries'
joint efforts to rid Ukraine of nuclear weapons. Today, Ukrainian troops
work side-by-side with American troops in Iraq, and new links between
Ukraine and NATO have permitted a more effective partnership in UN
peacekeeping efforts in the Balkans.

"It is in this spirit of peace and freedom that I also recognize the
fortieth anniversary of the Taras Shevchenko monument in Washington, DC.
Taras Shevchenko was a longtime advocate for Ukrainian independence,
and his poetry celebrated the proud history of the Ukrainian people. Born
into serfdom, he dedicated his life to Ukrainian sovereignty, and the
commemoration of his statue is a fitting symbol of Ukraine's own
independence.

"I congratulate the Ukrainian people on the anniversary of their
Constitution, and applaud their efforts towards a stronger democracy and
a promising future. Ukraine is a vital European nation and American ally,
and I am grateful for the contributions it has made to the security of the
world.

Likewise, I am grateful for the contributions that Ukrainian-Americans
have made to this country and take great pleasure in celebrating Ukraine's
Constitution Day with them." [Website: www.johnkerry.com] (END)
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ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER TWELVE
Historical Gallery: http://www.artukraine.com/histgallery.htm
=======================================================
12. UKRAINE: ADOPTION STILL A SLOW AND PAINFUL PROCESS

By Yulianna Vilkos, Kyiv Post Staff Writer
Kyiv Post, Kyiv, Ukraine, Thursday, May 27, 2004

Adopting a child anywhere is a nightmare of paperwork, legal documents,
agency fees, and waiting. Add language and cultural barriers, outdated laws
and a legal vacuum, and you've got the situation foreigners face in trying
to adopt Ukrainian children through a Kyiv government agency.

Those who have managed to adopt a Ukrainian child, or who have tried to but
failed, believe the difficulties they faced will drive away others like
them - something a poor country with overcrowded orphanages can ill afford.

"We felt like we were animals being trained to jump through a hoop," an
American woman named Anne (not her real name) recently told the Post. She
and her husband underwent the adoption process here and cited unclear or
poor laws and a lack of transparency as issues that will deter people like
her from adopting Ukrainian children in the future. She says it was a
horrible experience, and they're not the only ones to complain.

"One of the most disappointing things about the adoption process in Ukraine
is that the requirements change without notice," says American Megan
Fordenbacker, head of the U.S.-based non-profit organization Life2Orphans
and the mother of two adopted Ukrainian children. In the United States, she
said, prospective parents have to go through a much longer checklist in
order to adopt, but the steps are well-defined and the process transparent.

These people and others like them say they were forced to waste money, time
and energy in dealing with confusing regulations, inefficiency and bad
communication at the National Adoption Center, the government agency solely
responsible for adoption here. Meanwhile, Ukraine's overcrowded orphanages
draw a minimum of state funding, and the number of Ukrainian children
adopted by Americans is dropping: from 1,107 in 2002 to 703 in 2003,
according to the U.S. embassy.

IN NEED OF HELP

According to the UN Convention on Children's Rights, which was ratified by
Ukraine in 1991, priority to adopt a child in a given country should be
given to a citizen of that country. In Ukraine, however, foreigners seem to
predominate: more than 11,000 children have been adopted by non-Ukrainians
since the National Adoption Center was established in 1996.

"Ukrainians tend to adopt only healthy babies, and those are few. Almost all
the orphans in the Center's database have some kind of disease," said the
head of the National Adoption Center, Eugenia Chernyshova. "Foreigners, on
the contrary, do not mind adopting children with chronic diseases, because
they have the chance and the resources to bring a child to health."

Americans tend to predominate in adopting Ukrainian orphans, followed by
Italians, Spanish and the French, according to the NAC. But it's not always
easy for them.

Anne and her husband told the Post they met with refusal after refusal when
they tried to adopt their second child, and were told that a law, which
turned out to be non-existent, prevented it. Seemingly arbitrary laws or
procedures were cited throughout the adoption process, seemingly to prevent
them from going on. "We addressed all possible higher authorities and went
through fear and anxiety until we finally were granted a child," Anne said.
"We just never knew what would happen next. There's a new rule in the NAC's
office every week."

The director of the Israeli Intercounty Adoption Agency says the demand for
Ukrainian orphans in Israel is very high, but the NAC seems more interested
in making enemies than friends. "Unfortunately, even though we abide by
Ukrainian law, we are not rewarded," she said without giving her name. "In
fact, the NAC does not consider us their friends, and very few children are
successfully adopted [through our agency]."

The NAC's Chernyshova attributed the decrease in the number of children
adopted by Americans - and other foreigners - to changes in Ukrainian
legislation, which have made the adoption process here even stricter. Since
Jan. 1, 2004, she said, a new family code, a new civic code and a resolution
on adoption from the Cabinet of Ministers have come into force. These three
documents now govern the adoption process in Ukraine. "Unfortunately, some
foreign citizens, as well as their facilitators and lawyers, did not pay
enough attention to the changes," she said, without indicating what has
changed.

REFERRAL AFTER REFERRAL

Perhaps some of the frustration foreigners like Anne and Fordenbacker feel
is a result of the volume of cases that Chernyshova and the NAC must deal
with. The NAC arranges appointments for an average 15 foreign families a
day, and more than 800 couples and singles are on the Center's waiting list.
"Every day we get about 50 packages with documents from prospective foreign
parents, and more than 30 percent of them do not go through, because the
forms have been incorrectly filled out," she said.

Procedural mistakes aside, Chernyshova agreed that some of regulations need
improvement. For instance, Ukrainian law mandates that children stay in an
orphanage for one year before becoming eligible for adoption by foreigners.
During that year, only Ukrainians have the right to adopt that child.
Chernyshova says this term should be shortened, as there are few Ukrainians
willing to adopt children with chronic diseases.

For foreigners, however, this is not an issue. One of the Fordenbacker's
adopted daughters was suffering from severe vision, hearing and mobility
problems at the time she was adopted. Now, after treatment in the U.S., she
is doing fine.

"It's not a real problem in the United States; things like that can be
fixed," Fordenbacker said. A psychologist with the NAC said there are often
cases like this, when children dramatically change several months after they
are adopted. "The children are simply coming back to life and flourishing,"
she said.

Such a comment raises the question of whether the NAC is doing the best it
can by its young charges. (END)
---------------------------------------------------------------------------
[EDITOR: Life2Orphans has been doing really outstanding work in Ukraine.
Life2Orphans is a collaborative, secular effort established by a group of
caring individuals primarily to directly help over 1000 orphans, aged 0 to
18 years, in several orphanages in Ukraine, as well as ship boxes
cost-effectively to other orphanages in Ukraine.
LINK: www.life2orphans.org]
========================================================
ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER THIRTEEN
========================================================
13. "PEASANTS WITH PROMISE: UKRAINIANS IN
SOUTHEASTERN GALACIA, 1880-1900"
Book of the Month for July 2004

Book by Stella Hryniuk, Canadian Institute of Ukrainian Studies Press
University of Toronto, Toronto, Ontario, Canada, June 28, 2004
304 pp., illus., photos, tables, maps, Sale: $20.97 (cloth) (reg. $34.95)

On the basis of evidence never before systematically analyzed-principally
newspaper reports, memoirs, and statistical materials-Stella Hryniuk has
written a socio-cultural history of a region of Eastern Galicia in the last
two decades of the nineteenth century. The book studies developments in
education and in agricultural productivity, the impact of self-help
movements and of the expansion of transportation networks, and
improvements in preventive health care in Southern Podillia.

Cumulatively, the effects of these developments led to the emergence of an
increasingly self-confident society in the region from which the majority of
early Ukrainian immigrants to Canada came. By showing that this rural area
was experiencing real progress, Dr. Hryniuk challenges the standard
interpretations of eastern Galicia, which have portrayed it as a region
characterized by backwardness and economic stagnation.

Preview 29 sample pages and 6 reviews
www.utoronto.ca/cius/webfiles/salesandspecials/bookofthemonth/0704.htm
Ready to Order? Please choose from the following 4 options:
(a) Order online at www.utoronto.ca/cius
(b) Call (780) 492-2973 between 8:30-4:30 (MST / -0700 UTC) and have
your credit card ready.
(c) Fax your billing address, payment method, and item(s) ordered to (780)
492-4967.
(d) Send your billing address, payment method, and item(s) ordered to CIUS
Press, 450 Athabasca Hall, University of Alberta, Edmonton, AB, Canada,
T6G 2E8.
CIUS Press is the largest publisher of English-language material about
Ukraine. It is the publishing arm of the Canadian Institute of Ukrainian
Studies at the University of Alberta and the University of Toronto. The
emergence of Ukraine as an independent state has focused general and
scholarly interest on Ukrainian studies, and CIUS Press is meeting that
interest and need with a sizeable offering of new, forthcoming, and already
published books.
Canadian Institute of Ukrainian Studies Press
University of Toronto, 1 Spadina Cres., Rm. 109
Toronto, ON, CANADA M5S 2J5; telephone: 416-978-6934
Fax: 416-978-2672; e-mail: cius@chass.utoronto.ca
CIUS Press: http://www.utoronto.ca/cius
Catalogue: http://www.utoronto.ca/cius/webfiles/catalogueofbooks.htm
Reports: http://www.utoronto.ca/cius/webfiles/researchreportscategory.htm
Encyclopedia of Ukraine : http://www.encyclopediaofukraine.com
Journal of Ukrainian Studies : http://www.utoronto.ca/cius/webfiles/jus.htm
CIUS Home: http://www.ualberta.ca/CIUS
========================================================
ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER FOURTEEN
========================================================
14. "NOT WORTHY:
Walter Duranty's Pulitzer Prize and The New York Times"

By E. Morgan Williams, Publisher and Editor
"The Action Ukraine Report", Washington, D.C., June 28, 2004

A major international campaign/crusade was launched in 2003 to have
the 1932 Pulitzer Prize of Walter Duranty revoked by the Pulitzer Prize
Committee or returned by "The New York Times."

The campaign was created and implemented under the leadership of
Professor Lubomyr Luciuk, a Canadian academic, of Canada's Royal
Military College. The campaign failed to achieve its specific goal but
did achieve its larger goal which was to significantly increase the
international awareness and knowledge about the millions who died in
Soviet Ukraine during the early 1930's in a massive genocidal famine
"Holodomor" that was the result of policies created and implemented
by the Communist Party of the Soviet Union under the direction and
leadership of Joseph Stalin.

A new book of important articles about the genocidal famine "Holodomor"
and the 2003 international campaign about Walter Duranty's 1932 Pulitzer
Prize for "foreign reporting" has recently been published. The book is
entitled, "Not Worthy: Walter Duranty's Pulitzer Prize and The New York
Times." The forty articles featured in the book were selected by the
editor Professor Lubomyr Luciuk
----------------------------------------------------------------------------
HOW TO ORDER THE NEW BOOK
"Not Worthy: Walter Duranty's Pulitzer Prize and The New York Times"
Compiled by Lubomyr Y Luciuk, with a foreword by Roger Daniels
Published for the Ukrainian Canadian Civil Liberties Association by
The Kashtan Press, 2004, paperback, 275 pp, select bibliography, index,
appendix, about the contributors, dedication, ISBN 1-896354-34-3.
The cost is $25 US (includes shipping and handling). Order by international
cheque or money order, made payable to The Kashtan Press. Mail the
order to The Kashtan Press, 22 Gretna Green, Kingston, Ontario,
Canada, K7M 3J2. (END)
==========================================================
ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER FIFTEEN .
==========================================================
15. UKRAINE: THE PRESIDENT AND THE JOURNALIST'S SHADOW
New revelations regarding the killing of journalist Georgy Gongadze reveal a
government cover-up on a massive scale, including possible multiple murders.

By Ivan Lozowy, Transitions Online (TOL)
Prague, Czech Republic, Monday, 28 June 2004

KIEV, Ukraine--Ever since his beheaded body was found dumped in a ravine
in November 2000, the fate of journalist Georgy Gongadze has dogged
Ukraine's President Leonid Kuchma. National as well as international
attention has been focused on the search for Gongadze's killers amid rumors,
false leads, and accusations implicating officials at the highest levels, up
to and including Kuchma.
The case against the Ukrainian authorities now seems stronger still, after
an article printed on 19 June in the British newspaper The Independent
revealed what many had suspected but lacked evidence of: that from day one,
the government was intent on a massive cover-up of the Gongadze case.
In the article, Radio Liberty journalist Askold Krushelnycky claims he was
given over 200 pages of documents detailing aspects of the Gongadze case
by officials investigating the case. Those officials expressed fear for
their lives and fear that important documents relating to the case would be
destroyed. Some files had, they said, already been expunged from the record
by officials trying to cover their own tracks.
THE MOTHER OF ALL COVER-UPS
The government's cover-up, according to the leaked documents, began on the
day Gongadze disappeared, when General Oleksiy Pukach, former head of the
Interior Ministry's Department of External Surveillance, ordered that a
surveillance operation against Gongadze, which he had directed, be halted.
Serhiy Chemenko, a member of the militia conducting surveillance of Gongadze
under Pukach's instructions, claims that, after the journalist disappeared,
Pukach also instructed him to deny that Gongadze was being followed. Another
militia officer involved in tracking Gongadze, Wolodymyr Yaroshenko,
confirms that Pukach issued instructions to deny everything.
Chemenko confirmed that the surveillance operation against Gongadze was
abruptly curtailed on 17 September 2000, the day after the journalist
disappeared. A militia captain, Vitaly Hordienko, claims that records of the
operation were destroyed hours after news of Gongadze's disappearance. This
accusation is supported by Pukach's office manager, Ludmilla Levchenko, who
stated that Pukach ordered the destruction of records logging the work of
teams watching Gongadze. Pukach's lawyer confirmed that his client had
ordered the destruction of documents relating to the surveillance of
Gongadze, and an internal memorandum from the Prosecutor-General's Office
also confirms that Pukach destroyed vital documents relating to the Gongadze
case.
The militiamen who likely had Gongadze under direct surveillance at the time
of his disappearance have not come forward. Some militiamen have, however,
given the names of several officers who they believe were on duty at the
time of Gongadze's disappearance and who might have played a role in his
abduction. Documents obtained by Krushelnycky suggest that one of those
officers, Oleksander Muzyka, was also a member of a notorious mafia group,
the Kisil gang.
NOT JUST ANOTHER CORPSE
Previous revelations have prompted the authorities to take action, albeit of
a questionable sort. Pukach was at first arrested on orders from
Prosecutor-General Sviatoslav Piskun for "exceeding his official authority"
when ordering the destruction of documents relating to the Gongadze case.
He was, however, released within two weeks. Piskun himself was replaced
a week after Pukach went free.
The authorities have taken swift action this time, too. Just two days after
the article appeared in The Independent, the Prosecutor-General's Office
announced that a citizen, "K," who is in custody, is under suspicion of
having killed Gongadze. The only evidence cited by the Prosecutor-General's
Office in support of this suspicion is that "K" had apparently conducted
beheadings before.
In the wake of the article in The Independent, Piskun's successor as
prosecutor-general, Hennadiy Vasilyev, has threatened to open criminal cases
on the grounds that information was disclosed illegally to the British
paper.
Observers believe that this could be a third attempt by the government to
try to dampen the scandal by making sensational announcements that later
fade away. In 2000, militia officials indicated that a group of gangsters
using fatal injections may have killed Gongadze, and in 2001 the interior
minister claimed that several dead bandits had been found with a map
disclosing the location of Gongadze's head. Both stories quietly faded away.
Gongadze's head has never been found.
However, one revelation of official complicity in Gongadze's murder that has
refused to go away exploded on the scene in 2003. A militia officer, Colonel
Ihor Honcharov, a member of Kiev's Directorate for Fighting Organized Crime,
was arrested on accusations of involvement in a "band of werewolves"--former
militiamen who had turned to hostage-taking and contract killings. Honcharov
claimed to have intimate knowledge of the Gongadze killing. He also claimed
to have hidden documents as well as video and audio materials in a hideout
known only to himself and a friend. At the time, Piskun characterized
Honcharov's statements as "very useful."
Honcharov died in custody on 1 August 2003. An opinion based on an autopsy
conducted by six medical experts concluded that Honcharov had been beaten
prior to his death and that his death had been triggered by an injection of
the barbiturate Thiopental. These conclusions were revealed for the first
time in documents handed over to The Independent.
In letters written before his death, Honcharov claimed that his superior,
Serhiy Khomula, had threatened to kill him while he was in custody if he
gave the names of colleagues who Honcharov claimed were linked to the
Kisil mob and the Gongadze killing.
The Prosecutor-General's Office claimed to have discovered the location
of Honcharov's hideout and found nothing.
MORE REVELATIONS TO COME?
The Gongadze case truly became a political issue two months after Gongadze's
disappearance, when a former bodyguard of Kuchma's, Major Mykola
Melnychenko, fled Ukraine after releasing taped conversations in which
Kuchma speaks of doing away with Gongadze. Gongadze, who founded the
Ukrayinska Pravda website, had published articles looking into the doings of
Kuchma's inner circle of politician friends and businessmen acquaintances,
including the head of the presidential administration, Viktor Medvedchuk.
A great deal of international attention has been paid to the Gongadze case,
which has become something of a symbol of the corruption and
authoritarianism of the current regime. The Parliamentary Assembly of the
Council of Europe (PACE) has decried "the lack of results in bringing to
justice those responsible for the murder of the journalist, Mr. Gongadze."
The European Union has consistently noted the lack of progress in
investigating the case.
In January 2001, Reporters Without Borders directed a mission to Ukraine
that concluded that "Gongadze was murdered because he was a journalist.
Everything seems to have been done to prevent that truth from being
revealed."
Ukraine's opposition leaders have seized on the new revelations of a
cover-up in the Gongadze case to try to put pressure on Kuchma's
administration. The leader of Our Ukraine, Viktor Yushchenko, one of the
favorites to win the presidential elections set for October, has called for
the prosecutor-general to appear in parliament to answer questions.
Hryhoriy Omelchenko, a deputy heading up a special parliamentary commission
investigating Gongadze's murder, announced two weeks ago that he planned to
call for a motion to impeach Kuchma. But most observers see little chance of
the motion being put to a vote, let alone passing, particularly since
parliamentary speaker Wolodymyr Lytvyn himself has been implicated in the
cover-up of the Gongadze case and perhaps even in the killing itself. The
government's record of shrugging off accusations aimed at its most senior
figures seems likely to be extended.
However, the number of officials willing to go public may well increase in
the coming months. The upcoming presidential election has shaken the status
quo, with more officials more willing to talk in expectation of regime
change. Potential whistleblowers may also be motivated by the fear that they
could meet Honcharov's fate, preferring to get their story out early as a
form of protection.
On 28 June, Krushelnycky distributed a CD-ROM of the documents in his
possession to opposition members of parliament.
Despite the efforts by Ukrainian authorities to hide the truth, a more
complete picture of Gongadze's last days and hours looks likely to continue
to emerge. (END) (LINK: http://www.tol.cz)
==========================================================
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----------------------------------------------------------------------------
Kyiv vs. Kiev-----SPELLING POLICY--Chornobyl vs.Chernobyl
THE ACTION UKRAINE REPORT" uses the spelling KYIV (Ukrainian)
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Executive Director, Ukrainian Federation of America (UFA);
Senior Advisor, Government Relations, U.S.-Ukraine Foundation (USUF);
Advisor, Ukraine-U.S. Business Council, Washington, D.C.;
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===================================================