Search site
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 107
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, WEDNESDAY, June 30, 2004

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

1.UKRAINIAN PRESIDENT CALLS FOR STRONGER TIES WITH NATO
Interfax-Ukraine news agency, Kiev, in Russian, 29 Jun 04
BBC Monitoring Service. UK, in English, Tuesday, Jun 29, 2004

2. MEETING OF THE NATO-UKRAINE COMMISSION AT HEADS OF
STATE AND GOVERNMENT LEVEL, ISTANBUL, TURKEY
Introductory Remarks by the Secretary General
NATO, Brussels, Belgium, Tuesday, 29 June 2004

3. CHAIRMAN'S STATEMENT: MEETING OF THE NATO-UKRAINE
COMMISSION AT SUMMIT LEVEL HELD IN ISTANBUL
Chairman's Statement, NATO, Brussels, Belgium, Tuesday, June 29, 2004

4. UKRAINE NOT READY TO JOIN NATO YET, PRESIDENT
LEONID KUCHMA, NATO CHIEF SAY
AP Online, Kiev, Ukraine, Tuesday, Jun 29, 2004

5.POLISH PRESIDENT SAYS UKRAINE IS AN IMPORTANT WORLD
PARTNER NOT JUST FOR POLAND BUT ALSO FOR NATO
PAP news agency, Warsaw, Poland, Tuesday, June 29, 2004

6. BULGARIA READY TO HELP UKRAINE'S NATO BID
ACCORDING TO PRIME MINISTER SAXE-COBURG-GOTHA
BTA web site, Sofia, Bulgaria, Tuesday, June 29, 2004

7.ROMANIAN PRESIDENT SAYS NATO-UKRAINE PARTNERSHIP
ONE OF MOST IMPORTANT SINCE THE END OF THE COLD WAR
ROMPRES news agency, Bucharest, Romania, Tuesday, June 29, 2004

8. SLOVAK PM URGES UKRAINE TO IMPROVE DEMOCRACY
AND INSURE LEGITIMACY OF PRESIDENTIAL ELECTION
Compiled by Beata Balogová from press reports
The Slovak Spectator, Slovakia's English language newspaper
Bratislava, Slovakia, June 29-July 4,2004, Volume 10, Number 25

9.NATO TELLS UKRAINE TO ENSURE FREE AND DEMOCRATIC
ELECTIONS AND TO SAFEGUARD MEDIA FREEDOMS
REUTERS, Istanbul, Turkey, Tuesday, June 29, 2004

10.BRITISH COMPANY ATLANTIC-CASPIAN TO INVEST USD 2.4
BILLION IN TRANSPORT AND INDUSTRIAL COMPLEX IN CRIMEA
Antonina Levko, Ukrainian News, Kyiv, Ukraine, June 29, 2004

11. POLISH CONSORTIUM TO SET UP WIDE-GAUGE RAILROAD
FOR PRODUCT SHIPPING TO AND FROM EASTERN MARKETS
Polish News Bulletin, Warsaw, Poland, Jun 29, 2004

12. YUSHCHENKO ACCUSES PROPERTY FUND OF FABRICATING
BIDDING TERMS FOR SALE OF UKRAINIAN STEEL MILL
By Aliona Korobka, Ukrainian News, Kryvyi Rih, Ukraine, June 28, 2004

13. PRIVATIZATION OF UKRAINIAN STEEL GIANT MAY
AFFECT PRESIDENTIAL ELECTION
"Privatization of Kryvorizhstal is security for Kuchma"
COMMENTARY By Oleysa Yakhno
Glavred, Kiev, Ukraine, in Russian, 22 Jun 04
BBC Monitoring Service,UK, in English, Tuesday, Jun 29, 2004

14. LETTER TO THE EDITOR: BAN ON RUSSIAN POP MUSIC
Letter to the Editor by Natalia Tailikh, Berlin, Germany
The Independent, London, UK, Wednesday, Jun 30, 2004

15. CRIMEAN TATARS DEMAND BACK THEIR LAND IN UKRAINE
AP Online, Kiev, Ukraine, Tuesday, Jun 29, 2004

16. WHY RUSSIA GAINS FROM A YUSHCHENKO VICTORY
COMMENTARY By Taras Kuzio
The Moscow Times, Moscow, Russia, Wednesday, June 30, 2004
=========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER ONE
=========================================================
1.UKRAINIAN PRESIDENT CALLS FOR STRONGER TIES WITH NATO

Interfax-Ukraine news agency, Kiev, in Russian, 29 Jun 04
BBC Monitoring Service. UK, in English, Tuesday, Jun 29, 2004

President Leonid Kuchma has told a meeting of the Ukraine-NATO committee
in Istanbul today that, after a difficult period in their relationship,
Ukraine and NATO have emerged on the course of practical action. He said
that the current level of ties is not adequate given Ukraine's achievements
in economic growth, political stability and interethnic tolerance, adding
that today's meeting should make possible an expansion in the partnership
between Ukraine and NATO. President George Bush is reported to be present
at the meeting.

The following is the text of a report by Interfax-Ukraine news agency:

ISTANBUL - Ukraine wants the current level of relations with NATO to be
raised, Ukrainian President Leonid Kuchma has said.

Addressing a meeting of the Ukraine-NATO commission at the highest level i
in Istanbul today, Kuchma said that significant changes have occurred in
Ukraine since the last meeting of the commission in Washington. For the last
five years, Ukraine has had some of the highest economic growth figures in
Europe. The country is also distinguished by "the stability of the political
situation, civil harmony and interethnic tolerance". "All this allows us to
speak of a higher level for relations with NATO than exists at present,"
Kuchma said.

He pointed to Ukraine's long experience of joint peacekeeping operations
with NATO and noted that Ukraine together with other members of the
alliance is currently taking an active role in stabilizing the situation in
Iraq as part of the international anti-terror coalition.

Kuchma also mentioned that a memorandum was recently signed on the use
of Ukrainian strategic aviation in training and operations by the alliance
in various parts of the world. "Today's meeting should provide a significant
impetus for further expanding our practical cooperation and for identifying
new directions for cooperation," Kuchma said. He said that he had in mind
Ukraine's involvement in the implementation of the Prague Initiatives [on
Nuclear Biological Chemical Defence]. He also mentioned Ukraine's joining
the Active Endeavour [anti-terrorism] operation in the Mediterranean, which
is being conducted under Article 5 of the North Atlantic Treaty.

Kuchma also said that Ukraine wishes to continue cooperating with NATO on
joint projects that have already proved their effectiveness. Among the most
important of these projects, Kuchma named the decommissioning of ordnance
and small arms. He said that the recent tragic events involving a fire at a
military depot in southern Ukraine had revealed many acute problems. [Five
people died and thousands were evacuated as a result of the fire at a
military ammunition depot in Zaporizhzhya Region in early May.] "Ukraine is
ready to carry out new projects in this area," he said.

He said that Ukraine was ready to continue to cooperate actively with NATO
on military reform. He said that Ukraine has already adopted a number of
important documents in the military sphere - the military doctrine and the
strategic defence bulletin for the period to 2015. In addition, Kuchma said
that parliament had passed a law on reforming the Ukrainian armed forces.

"The most important priorities in Ukraine's domestic and foreign policy
include enhancing Ukraine's Euro-Atlantic integration and the related
thorough reform of the armed forces," Kuchma said.

He said that in their relations, Ukraine and NATO had gone through "a
period of loud, but unfortunately largely ineffectual declarations" and had
overcome a difficult stage of complications and misunderstandings.

"At last we have emerged on the proper course - the course of practical
action," Kuchma said. He said that Ukraine is aware that it faces difficult
tasks on this course, the most fundamental of which are included in the
Ukraine-NATO Action Plan. Kuchma said that the Action Plan and the
Distinctive Partnership Charter "are decisive for the development of
relations with NATO".

"I hope that today's discussions will allow us to assess objectively the
current state of relations between Ukraine and NATO and identify specific
prospects," he said.

[Interfax Ukraine reported on 29 June that the meeting was attended by the
leaders of several NATO countries including US President George Bush, French
President Jacques Chirac and German Chancellor Gerhard Schroeder.] (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER TWO
=========================================================
2. MEETING OF THE NATO-UKRAINE COMMISSION AT HEADS OF
STATE AND GOVERNMENT LEVEL, ISTANBUL, TURKEY

Introductory Remarks by the Secretary General
NATO, Brussels, Belgium, Tuesday, 29 June 2004

Good morning, ladies and gentlemen.

President Kuchma, I would like first of all to welcome you and your
delegation to our meeting here this morning. I am very happy to have
this opportunity to hold the NATO-Ukraine Commission at the level of
Heads of State and Government.

Let me open this meeting by saying that Allies remain firmly committed
to a robust, effective and intensifying partnership with Ukraine. Nearly
two years ago in Prague, in adopting the NATO-Ukraine Action Plan,
NATO and Ukraine agreed to joint principles and objectives in the political,
economic, military, security and defence spheres. If fully implemented,
the benchmarks and actions contained in the Action Plan will help
Ukraine pursue its aspirations for Euro-Atlantic integration.

Ukraine's ultimate success in this effort is in the interest of everyone
represented at this table. In peacekeeping efforts in the Balkans; in
the international fight against terrorism; in enhancing the Alliance's
ability to carry out its mission in Afghanistan; as well as in peace
support missions in Iraq and elsewhere, Ukraine has demonstrated her
capacity to serve as a producer indeed an exporter of security. Allies
recognise and appreciate this.

We also welcome today a further step forward in our co-operation against
the terrorist threat, with Ukraine's offer of support to Operation
Active Endeavour.

At informal high-level consultations in Warsaw last month, Defence
Minister Marchuk was able to review with Allied colleagues the quite
substantial steps that are being undertaken in the sphere of defence and
security sector reform.

We also have welcomed the entry into force of the Memorandum of
Understanding on Host nation Support and the signature of the
Memorandum of Understanding on Strategic Airlift.

While we welcome the progress that has been made, Allies also have
underscored that much work remains to be done.

In adopting the Action Plan, Ukraine has undertaken a firm commitment to
the common values that underpin the Alliance. It is no secret that
Allies have had serious questions with respect to how this commitment
has been implemented. In some cases, as in questions related to export
controls, substantial steps have been taken to address these concerns.
In others, such as media freedom and the conduct of free and fair
elections, important questions remain.

I would expect a very frank discussion of these issues to continue here
today, as befits genuine partners. I also would expect many Allied Heads
of State and Government to underscore the importance of the ongoing
Presidential campaign as an opportunity for Ukraine to demonstrate to
the world her intentions in this area.

To President Kuchma, and to the Ukrainian people, I would say that our
interest in these matters should be understood as a sign of our deep
commitment to this partnership, and our willingness to do whatever we
can to help Ukraine assume her rightful place as an integral part of the
Euro-Atlantic community.

With this, ladies and gentlemen, I give the floor to President Kuchma. (END)
==========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER THREE
==========================================================
3. CHAIRMAN'S STATEMENT: MEETING OF THE NATO-UKRAINE
COMMISSION AT SUMMIT LEVEL HELD IN ISTANBUL

Chairman's Statement, NATO, Brussels, Belgium, Tuesday, June 30, 2004

The Heads of State and Government of the North Atlantic Treaty
Organization and Ukraine met today in Istanbul to discuss the
contribution of the NATO-Ukraine Distinctive Partnership to peace and
stability in the Euro-Atlantic area, as well as the future prospects of
that Partnership in light of the implementation of the NATO-Ukraine
Action Plan.

President Kuchma welcomed the participation of the seven new member
states of the Alliance in the NUC Summit. He reiterated Ukraine's
continuing support of NATO's enlargement and its open door policy as
indispensable components of the Euro-Atlantic security architecture. He
also welcomed the decisions taken yesterday by the North Atlantic
Council Summit aimed at strengthening peace and stability in the
Euro-Atlantic area.

In addition, he reaffirmed Ukraine's determination to attain NATO
membership. He presented his assessment of recent developments in
Ukraine, drawing attention to steps which have been taken to implement
the objectives of the NATO-Ukraine Action Plan.

In this context, he confirmed his country's commitment to implement
far-reaching democratic, economic, military and defence reforms. In
particular, he reiterated his pledge to strengthen democracy, rule of
law, freedom of speech and press, and to ensuring the holding of free
and fair presidential elections, all of which are essential
pre-conditions to Ukraine's integration in Euro-Atlantic structures,
including its stated goal of NATO membership.

NATO Heads of State and Government reiterated their firm commitment
to the Alliance's open door policy and underscored the strategic nature
of the NATO-Ukraine relationship. They called upon Ukraine's leadership
to implement actively and fully the commitments to EuroAtlantic values at
the core of the NATO-Ukraine Action Plan. They stressed the need for
Ukraine to implement political, economic, military and defence reforms,
placing particular emphasis on the responsibility of Ukraine's
leadership to strengthen democracy, the rule of law, and freedom of
speech and media.

They underlined the importance of ensuring that the ongoing presidential
election campaign and the voting process are conducted in a manner
which is transparent, free, and fair, as judged by the OSCE. In this
context, they also noted their concerns regarding recent events that raise
questions about Ukraine's protection of human rights and upholding of
democratic values.

Heads of State and Government reaffirmed their conviction that the
NATO-Ukraine Distinctive Partnership continues to play a crucial role in
the effort to ensure security and stability throughout the Euro-Atlantic
area, including through cooperation in the context of NATO's ISAF
mission in Afghanistan. Discussing the situation in Kosovo, they praised
KFOR for its role in maintaining a secure environment, while also
expressing concern over recent outbreaks of violence in the province
provoked by radical extremists.

Heads of State and Government also welcomed United Nations Security
Council Resolution 1546 as paving the way for long-term stabilization in
Iraq, to which Ukraine has contributed through its participation in the
Polish-led division in south-central Iraq.

NATO Heads of State and Government commended Ukraine's deployment
in, and resolve to remain an active contributor to, the NATO-led KFOR
operation in Kosovo, as well as Ukraine's significant contributions to
other international peace-support efforts. They noted with appreciation
Ukraine's commitment to continue its support to the ISAF operation in
Afghanistan, and its more recent decision to offer active support to the
Alliance's Operation Active Endeavour in the Mediterranean Sea.

They also welcomed the entry into force of the Memorandum of
Understanding between Ukraine and the Alliance on Host Nation Support
for NATO operations, and the signing of the Memorandum of Understanding
between Ukraine and NATO on Strategic Airlift. Moreover, they expressed
appreciation for Ukraine's interest in participating in some of the
multinational activities of the Prague Capabilities Commitment, and for
Ukraine's progress in carrying out a comprehensive defence reform.

They welcomed the development by Ukraine of the Strategic Defence Bulletin
until the year 2015 as a major step forward in the defence review
process, and encouraged Ukraine to ensure that planned reforms are fully
implemented and adequately financed.

Heads of State and Government also agreed on the need for reinforced
concerted action to stop the proliferation of WMD, and welcomed the
intensification of co-operation on nonproliferation issues. Noting the
additional threat to international security, as well as to the safety of
the civilian population, posed by the large stocks of munitions inherited by
Ukraine as a legacy of the Cold War, they also discussed the proposed
launch of a PfP Trust Fund on destruction of surplus stocks of munitions
and small arms and light weapons.

Heads of State and Government tasked the NATO-Ukraine Commission in
Ambassadorial session to review NATO-Ukraine relations, including
possible enhancements in keeping with Ukraine's concrete achievements in
implementing the objectives of the NATO-Ukraine Action Plan, with a view
to presenting recommendations at the December 2004 meeting of the NUC at
the level of Foreign Ministers. (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 106: ARTICLE NUMBER FOUR
=========================================================
4. UKRAINE NOT READY TO JOIN NATO YET, PRESIDENT
LEONID KUCHMA, NATO CHIEF SAY

AP Online, Kiev, Ukraine, Tuesday, Jun 29, 2004

KIEV - Ukrainian President Leonid Kuchma and NATO Secretary-General
Jaap de Hoop Scheffer said Tuesday that Ukraine is not ready to join the
Western alliance in the near future, the Interfax news agency reported.

"The current development of civic society and the economy in Ukraine ... do
not allow either Ukraine or NATO to discuss the issue of membership," Kuchma
said after meeting de Hoop Scheffer during the NATO summit in Istanbul. "I
couldn't agree more," the NATO chief replied.

In April, NATO said Ukraine would have to make progress in democracy and
human rights and implement comprehensive military reforms. On Tuesday, de
Hoop Scheffer added free elections to the list. "Ukraine must strengthen
democracy, freedom of speech and conduct free and fair elections," de Hoop
Scheffer said.

Ukraine's presidential election, seen as crucial for the country's
aspirations to join NATO and the European Union, are scheduled for Oct. 31.
Kuchma has said he will not run. Kuchma pledged that Ukraine would "work
more, and the future will say how and when" the country could join NATO,
Interfax reported.

After the Soviet collapse, Ukraine sought to improve relations with the
West. It deployed troops to serve in the NATO-led peacekeeping mission in
Kosovo and sent a contingent to Iraq as part of the U.S.-led coalition.
Earlier this year, Ukraine granted NATO the right of free passage across its
territory and the use of its transport aviation.

Ukraine also has joined NATO's Partnership for Peace program, which is
considered a step toward membership in the alliance. The program includes
most of the former Soviet bloc and Balkan countries. However, Kiev's
aspirations are hampered by Russia's eagerness to maintain influence in
Ukraine, which lies between Russia's borders and the eastward-expanding
NATO. (av/ji) (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER FIVE
=========================================================
5. POLISH PRESIDENT SAYS UKRAINE IS AN IMPORTANT WORLD
PARTNER NOT JUST FOR POLAND BUT ALSO FOR NATO

PAP news agency, Warsaw, Poland, Tuesday, June 29, 2004

ISTANBUL -- NATO leaders' meeting with Ukrainian President Leonid
Kuchma here on Tuesday [29 June] is "tied to my personal diplomatic
activity", according to President Aleksander Kwasniewski.

"We were very keen on holding the meeting because we see Ukraine as one of
the most important world partners not just for Poland, but also for NATO. We
also appreciate the fact that Ukrainians are present in so large numbers in
Kosovo and in Iraq," the president explained at a press conference here on
Monday.

He said he expected the adoption of "a timetable of Ukraine's inclusion into
NATO structure and perhaps even the fixing of a date for admission to NATO
at some later time, although this is obviously very ambitious". "NATO
leaders will at the same time formulate their expectations concerning
Ukraine, its adherence to democratic standards, fair elections," Kwasniewski
added.

The NATO summit welcomed Ukraine's determination to integrate with NATO
and the EU on Monday. But it also called on Kiev to produce "tangible
progress" in democratic reforms. They also welcomed Ukraine's participation
in the Polish-Ukrainian battalion in Kosovo, its progress in reforming the
armed forces and in military cooperation with NATO. [passage omitted] (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER SIX
=========================================================
6. BULGARIA READY TO HELP UKRAINE'S NATO BID
ACCORDING TO PRIME MINISTER SAXE-COBURG-GOTHA

BTA web site, Sofia, Bulgaria, Tuesday, June 29, 2004

ISTANBUL - "In its capacity as 2004 chairman-in-office of the Organization
for Security and Cooperation in Europe, Bulgaria is ready to help Ukraine
integrate with the Euro-Atlantic structures," Bulgarian Prime Minister
Simeon Saxe-Coburg-Gotha said at a meeting of the NATO-Ukraine
Commission (NUC) at the level of heads of state and government here on
Tuesday [29 June].

In a brief statement, the prime minister also said that Ukraine belongs in
Europe and the European countries should reckon with it as a factor on the
old continent, said Bulgarian government spokesman Dimitur Tsonev.

The participants in the meeting discussed the contribution of the
NATO-Ukraine special partnership to peace and stability in the Euro-Atlantic
region, the prospects of this partnership, and the implementation of the
NATO-Ukraine Action Plan.

Ukrainian President Leonid Kuchma, who attended the meeting, welcomed the
participation of seven new NATO member states and confirmed his country's
commitment to strengthen democracy, freedom of speech and the press, and to
ensure conduct of free and fair presidential elections. (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER SEVEN
=========================================================
7. ROMANIAN PRESIDENT SAYS NATO-UKRAINE PARTNERSHIP
ONE OF THE MOST IMPORTANT SINCE THE END OF THE COLD WAR

ROMPRES news agency, Bucharest, Romania, Tuesday, June 29, 2004

ISTANBUL - The NATO-Ukraine Distinctive Partnership is one of the most
important ones that the north Atlantic alliance has forged after the
completion of the cold war, President Ion Iliescu said in his short speech
delivered on Tuesday [29 June] at the meeting of the NATO-Ukraine
Commission.

Ukraine's evolution towards democracy and market economy, Iliescu added,
has a major strategic relevance to European and Euro-Atlantic security, and
this upward trend must be backed up both by NATO and the European Union
through the European Neighbourhood Policy.

Voicing Romania's wish to support its neighbours, Iliescu underscored that
Romania fully supports Ukraine's aspirations to join NATO and it is ready to
offer its own experience in order to back up Ukraine's efforts of accession
to NATO. Adding that the NATO-Ukraine plan of objectives is a valuable
instrument for restructuring domestic reforms in Ukraine, the Romanian
president also said that Romania wants Ukraine to begin a membership action
plan as soon as possible.

"As a NATO member state and a neighbour of Ukraine we are interested in the
firm progress of this country towards democracy, market economy and a
European future. That is why Romania supports the consolidation of the
NATO-Ukraine partnership and bilateral relations from then perspective of
the Ukrainian-Romanian action plan for Europe. The deepening of our
cooperation under the aegis of NATO and at a bilateral level is a priority
for Romania and a contribution to regional and Euro-Atlantic stability,"
Iliescu added. (END)
========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER EIGHT
========================================================
8. SLOVAK PM URGES UKRAINE TO IMPROVE DEMOCRACY
AND INSURE LEGITIMACY OF PRESIDENTIAL ELECTION

Compiled by Beata Balogová from press reports
The Slovak Spectator, Slovakia's English language newspaper
Bratislava, Slovakia, June 29-July 4,2004, Volume 10, Number 25

ISTANBUL - SLOVAK Prime Minister Mikulás Dzurinda urged Ukraine to
improve democracy and ensure the legitimacy of its upcoming elections in an
address to the ongoing NATO summit in Istanbul on June 29, the news wire
TASR wrote.

Dzurinda said he appreciated the progress of Slovakia's eastern neighbour in
its reform efforts, yet he stressed that the international community
expected the country to step forward in the areas of economy, politics,
military, media freedom, and strengthening NGOs.

He expressed the willingness of his government to pass Slovakia's experience
on to Ukraine in the preparation of reforms and their implementation.

"Slovakia wants to be Ukraine's proper voice in Euro-Atlantic structures.
However, it won't help if we cover its problems in fog. Friends tell each
other the truth and I have tried to do that this time. I hope Mr Kuchma has
accepted that..." said the Slovak PM.

As regards the presidential and parliamentary elections in Ukraine, Dzurinda
said that all leaders, including US President George W Bush and NATO
Secretary General Jaap de Hoop Scheffer, were clear in telling Kuchma that
both ballots have to be just and democratic.

"Whoever wins, they must have a legitimate mandate to continue to lead
Ukraine on its way to Euro-Atlantic structures," said Dzurinda when summing
up the debate, claiming that no particular date for Ukraine's entry into the
EU was set. LINK: http://www.slovakspectator.sk/clanok.asp?cl=16554
========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER NINE
========================================================
9. NATO TELLS UKRAINE TO ENSURE FREE AND DEMOCRATIC
ELECTIONS AND TO SAFEGUARD MEDIA FREEDOMS

REUTERS, Istanbul, Turkey, Tuesday, June 29, 2004

ISTANBUL - NATO leaders urged Ukraine on Tuesday to safeguard
media freedoms and to ensure fully free and democratic presidential
elections later this year.

Meeting President Leonid Kuchma on the second day of a NATO summit in
Istanbul, the 26-nation alliance also praised Ukraine's contributions in
Iraq, Afghanistan and the Balkans and reaffirmed the ex-Soviet republic's
strategic importance.

"They (the NATO leaders... placed) particular emphasis on the responsibility
of Ukraine's leadership to strengthen democracy, the rule of law and freedom
of speech and media," NATO Secretary-General Jaap de Hoop Scheffer said.

"They underlined the importance of ensuring that the ongoing presidential
election campaign and the voting process are conducted in a manner which is
transparent, free and fair," Scheffer said in a statement.

Kuchma is expected to stand down at the end of his second term in October.
Western allies have long criticised Ukraine's lack of media freedom and its
failure to implement market reforms and root out corruption.

Opposition deputies in Ukraine's parliament have said a number of
sympathetic media outlets have been closed ahead of the elections to ensure
blanket campaign coverage of the pro-Kuchma candidate, Prime Minister Viktor
Yanukovich. Ukraine's government denies charges of muzzling the press.

Kuchma acknowledged that Ukraine was still far from its long-term goal of
joining NATO. "We cannot talk of a specific date for Ukraine's accession to
NATO. We have lots of work to do," Kuchma told reporters.

NATO's two-day Istanbul gathering is the first summit since the alliance
took in seven new members in March -- the former Soviet republics of
Estonia, Latvia and Lithuania along with Bulgaria, Romania, Slovakia and
Slovenia.

Ukraine, a country of 48 million people, is sandwiched between the newly
expanded European Union and Russia, which has retained its strong influence
in the years since the breakup of the Soviet Union and Kiev's independence.
Unlike Moscow, however, Kiev has backed NATO expansion.

NATO noted Ukraine's contribution of troops in Kosovo and Iraq and also
hailed its decision to join joint patrols in the eastern Mediterranean. That
operation, which Russia will also join, involves NATO ships hailing and
boarding suspect vessels. (END)
========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER TEN
========================================================
10. BRITISH COMPANY ATLANTIC-CASPIAN TO INVEST USD 2.4
BILLION IN TRANSPORT AND INDUSTRIAL COMPLEX IN CRIMEA

Antonina Levko, Ukrainian News, Kyiv, Ukraine, June 29, 2004

KYIV -The British firm Atlantic-Caspian is going to invest USD 2.4 billion
in construction of the transport and industrial complex Donuzlav in the
Crimea.

A spokesman for the production firm Proekthidrobud (Odesa), which is the
general contractor and general designer, and also the coordinator for
preparing the Donuzlav project, disclosed this to Ukrainian News.

"The parliament of the Crimea accepted the plan of Proekthidrobud as
mandatory for implementation. The investor in the construction project,
Atlantic-Caspian, is the general customer of the work. Information has not
been made public about it. The headquarters of Atlantic-Caspian is known to
be in London," the spokesman explained.

The director of Proekthidrobud, Velymyr Zyzak, told Ukrainian News that
Ukraine's investments in construction of Donuzlav comprises the allocation
of a land parcel with an area of 4,000 hectares in the area of the
Medvedeve, Novoozernyi and Myrne in the Crimea.

As Zyzak informed, the transport and industrial complex Donuzlav will
include a port, berths with depth of 6.5 to 18 meters, container terminals,
petroleum refinery, ferry and passenger complexes, a railroad branch with
length of 104 kilometers from Voyinka station to the port and highway
linking the port with the Yahotyn-Kerch international transport route.

In Zyzak's words, Donuzlav will be able to handle on an annual basis 65
million tons of cargoes, including: 5 million tons of bunker fuel, 2 million
tons of light petroleum products, 20 million tons of cruel oil, 1 million
ton of chemical products for cruel at the covered warehouses, 6 million tons
of coal and ores, 3.5 million tons of general cargoes (including metal) etc.

Donuzlav will accommodate tankers with dead weight of up to 100,000 tons.
According to the assertion of Zyzak, as soon as the complex is put into
operation, there will be a vigorous redistribution of the freight flows,
which are presently by-passing Ukraine.

The Crimean navy base of the Black Sea fleet, which included units of
anti-submarine navy air fleet and destroyer ships, were located in Donuzlav
up until 1994.

Donuzlav is situated in the only natural bay in Ukraine, the natural
landscape of which is favorable for erecting a transport and industrial
complex with such targeted capacity. (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER ELEVEN
=========================================================
11. POLISH CONSORTIUM TO SET UP WIDE-GAUGE RAILROAD
FOR PRODUCT SHIPPING TO AND FROM EASTERN MARKETS

Polish News Bulletin, Warsaw, Poland, Jun 29, 2004

WARSAW - A consortium led by Krono-Wood, the Mielec-based producer
of chipboards, plans to set up a 16 km wide-gauge railroad to streamline
product shipping to and from eastern markets, where the wide-gauge rail is
standard.

The consortium comprises firms of the Mielec Special Economic Zone
(SSEM), who are interested in connecting the zone with the wide-gauge
railroad between Polish steel plants in Silesia and Ukraine, through the
Wola Baranowska railroad junction in the Tarnow region.

The project is estimated initially at ZL60m. The 16 km line is to support
both gauge systems, offering versatility to shipping companies. Such a
system is expected to carry between 300,000 to 400,000 tons of cargo per
year, said Tomasz Janczak, Krono-Wood president. If accomplished, it would
allow the SSEM firms to switch product shipping from lorries to trains.
(END)
=========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER TWELVE
=========================================================
12. YUSHCHENKO ACCUSES PROPERTY FUND OF FABRICATING
BIDDING TERMS FOR SALE OF UKRAINIAN STEEL MILL

By Aliona Korobka, Ukrainian News, Kryvyi Rih, Ukraine, June 28, 2004

KRYVYI RIH, Ukraine - Verkhovna Rada deputy Viktor Yuschenko,
who is the leader of the Our Ukraine bloc, has accused the State Property
Fund (SPF) of fabricating the bidding terms on sale of the Kryvorizhstal
metallurgical plant.

Yuschenko delivered the accusation at a news conference in Kryvyi Rih on
Sunday. "There was a complete fabrication of the bidding terms," he said.
In Yuschenko's opinion, state civil servants at various levels that took
part in the privatization process of Kryvorizhstal did not act in the
national interests of Ukraine.

Our Ukraine's leader disclosed that as a result of the non-transparent
privatization of the metallurgical plant, the state under-received UAH 4
billion. Yuschenko said that it would have been possible to raise stipends
and pensions with these funds 4 to 6-fold.

Yuschenko opined that the actual price tag of Kryvorizhstal is not UAH
1.5 billion and not 2 billion, but more. "Kryvorizhstal is the largest
metallurgical plant in Europe, which four generations of Ukrainians built,"
said Yuschenko.

The leader of Our Ukraine disclosed that there are now 215 people's
deputies in the Verkhovna Rada that are opposed to the privatization of
Kryvorizhstal.

Yuschenko disclosed that as of now it is not necessary for parliament to
interfere in the process that is connected with the issue of privatizing
Kryvorizhstal. At the same time, he assumed that Rada will deal with this
issue by the autumn.

As Ukrainian News reported, on June 14, the State Property Fund has
declared the Investment and Metallurgical Union as the winner of the
competition for 93.02% of the shares in the Kryvorizhstal mining and
metallurgical plant.

The starting price of the 93.02% of the shares in the Kryvorizhstal mining
and metallurgical plant was UAH 3,806 million, but the winner paid UAH
4.26 billion to the budget for the plant's shares.

According to an informed source, the System Capital Management company
(Donetsk) has a 65.5% stake in the statutory fund of the Investment and
Metallurgical Union consortium.

Companies controlled by the Dnipropetrovsk-based Interpipe corporation
and the Donetsk-based System Capital Management created the Investment
and Metallurgical Union.

Kryvorizhstal ended the 2003-operating period with net profits of UAH 870.8
million, and boosted revenues by 29.5% to UAH 7.5 billion, compared with
2002. Kryvorizhstal is made up of an ore enrichment complex, coke and
chemical plant and a mining office for extraction of iron ore. Kryvorizhstal
is the largest producer of metal products in Ukraine with annual production
volume of nearly 6.3 million tons of rolled metal products. (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER THIRTEEN
=========================================================
13. PRIVATIZATION OF UKRAINIAN STEEL GIANT MAY
AFFECT PRESIDENTIAL ELECTION
"Privatization of Kryvorizhstal is security for Kuchma"

COMMENTARY By Oleysa Yakhno
Glavred, Kiev, Ukraine, in Russian, 22 Jun 04
BBC Monitoring Service,UK, in English, Tuesday, Jun 29, 2004

The fact that presidential administration chief Viktor Medvedchuk did not
intervene in the privatization of Ukraine's biggest steelworks Kryvorizhstal
shows that his power and influence are largely exaggerated, a web site has
suggested. Ukraine's refusal to consider Russian steel giant Severstal's bid
for Kryvorizhstal may push the Russians closer to supporting opposition
leader Viktor Yushchenko rather than Prime Minister Viktor Yanukovych at
the October presidential election in Ukraine, according to the web site.

The following is the text of the article by Olesya Yakhno entitled
"Privatization of Kryvorizhstal is security for Kuchma", posted on the
Ukrainian Glavred web site on 22 June; subheadings have been inserted
editorially:

The privatization of Kryvorizhstal has shown that business in the form of
[Ukrainian tycoons Rinat] Akhmetov and [Viktor] Pinchuk means security for
[President Leonid] Kuchma. The fact is that in many ways these people will
be the brokers of any decisions by the president. The only question is will
there be an actual decision of Leonid Kuchma today? In this sense, this week
may bring a certain clarity to the political situation.
WILL PINCHUK AND AKHMETOV ENSURE KUCHMA'S FUTURE
It is clear that the privatization of Kryvorizhstal had not only economical
and not only political connotations. In a certain sense it may be said that
the privatization has determined Leonid Kuchma's security for the
post-presidential period. It is striking that a very tasty morsel of the
Ukrainian economy - Kryvorizhstal - fell to the lot of the representatives
of two political groups, and that is Rinat Akhmetov and Viktor Pinchuk. And
that privatization bypassed the third group, [head of Ukrainian presidential
administration Viktor] Medvedchuk's.
To what extent can one make these conclusions? If you take into
consideration the fact that business and power in Ukraine are inseparable,
probably, it is possible to do so. Some people entered politics in order to
protect or to develop their business without interference, whereas others
did so because their sources of making profit "purely through business" had
been exhausted, and could only be ensured by taking power. Strictly
speaking, politics in Ukraine is a continuation of economics. It is another
matter that political events are more manifest and obvious than matters of
the economy.
At a time when against the background of a fierce political struggle, no
less (and sometimes more) fierce economic wars are taking place, it is also
no secret that political deals between Ukrainian politicians are possible
only if there are economic accords. Political compromise then looks like
something clothed in economic dress. Therefore it is not surprising (and we
have observed this more than once) that political agreements break down as
soon as economic alliances collapse. As soon as a third party appears with
more advantageous business proposals, economic accords, and that means,
political ones, collapse too.
MEDVEDCHUK A POLITICAL "GIANT" AND ECONOMIC DWARF
The fact that Medvedchuk was not involved in the privatization of
Kryvorizhstal quite naturally knocked the impressions of certain politicians
of what the Medvedchuk-[influential pro-presidential MP Heorhiy] Surkis
group represents. True, it is said that Medvedchuk received some kind of
share of the enterprise (for example, in the form of a kickback), but this,
rather, is only at the level of agreements which in Ukraine, as we know, may
frequently not be fulfilled. Kryvorizhstal is several times more than the
Medvedchuk-Surkis group earned in the past several years of their stay in
power. In other words, Medvedchuk's political strength does not correspond
to his economic potential.
It is like being a political "giant" and an economic "impotent" at the same
time. In a certain sense, Medvedchuk is repeating the fate of [Kuchma's
administration chief in 1994-97, Dmytro] Tabachnyk. Incidentally, the
examination by parliament of the decision of lack of confidence in the head
of the president's administration Medvedchuk became the second one after the
examination of the same question on Tabachnyk in 1995.
Some representatives of the USDP [United Social Democratic Party] already
realized this, saying that the Social Democrats were being constantly used.
All the activities of the USDP in the past two years show that they have
contrived to make successful moves and manoeuvres. But as a result of this,
quite different forces have become strengthened and continue to be
strengthened. The CPU [Communist Party of Ukraine], for example, which
through Medvedchuk received the post of deputy speaker [Adam Martynyuk].
Medvedchuk was forced to defend not himself but the power and Kuchma. In
this sense, the head of the presidential administration's interview to
Korrespondent looks more like sloganeering than argument, and smacks of a
pretext to raise his worth in the president's eyes.
What conclusions can be drawn from the situation with Kryvorizhstal? In the
first place, the fact that Medvedchuk's power and influence are somewhat
exaggerated. Second, what is happening today shows that politicians are
secondary compared with businessmen, at least for the time being. In point
of fact, it is business in the shape of Akhmetov and Pinchuk which will be
Kuchma's security: Pinchuk, for his leanings to the west, and Akhmetov's to
the east. The fact of the matter is that in many ways these people will be
the middle-men in whatever decisions the president makes.
RUSSIA'S ATTITUDE TO UKRAINIAN ELECTION MAY CHANGE
Like Medvedchuk, Russia and its Severstal also found itself derailed by the
privatization of Kryvorizhstal. As the Russian political pundit Stanislav
Belkovskiy said, this became a precedent in Ukrainian-Russian relations and,
in turn was reflected in Russia's rhetoric regarding the candidate for the
presidential elections. Among other things, Belkovskiy believes that not one
of the serious components of Russian politics seriously sees [Prime Minister
Viktor] Yanukovych as a possible replacement for Kuchma, while certain
groups are already lobbying [Our Ukraine opposition leader Viktor]
Yushchenko's candidature in Russia. As far as Glavred is aware, among these
are [One Russia faction member] Aleksandr Lebedev and [Alfa Group head]
Mikhail Fridman. The first has long been acquainted with Yushchenko; the
second, they say, works with Pinchuk.
Despite the fact that the most acceptable scenarios for Russia are a
power-wielder or a third term for Kuchma, Russia de-facto will support any
elected Ukrainian president, even Yushchenko, Belkovskiy says, as if to say
the main thing is that it should be the choice of the Ukrainian people, but
Russia's support applies too. To what extent Belkovskiy's words correspond
with reality and reflect the opinion of the administrative-bureaucratic
elite which has influence on Putin is, of course, open to argument. But the
fact that Russia has not put its stakes on any one person in the
presidential elections in Ukraine is significant, in exactly the same way as
it has no policy in relation to Ukraine.
Such a position is not surprising, but on the contrary, is natural,
especially if political reform really does occur in Ukraine. Why should
Russia place its stakes on anyone at the presidential elections if it does
not know with whom it will be working: with the prime minister, with the
president, with the speaker? But the main thing is that this has swept away
the delusion that Russia and the West will be in conflict at the
presidential elections.
Today Russia is virtually playing on all fronts. It is working with the
government candidate, but the view is that it is not opposed to contacts
with Yushchenko. In his turn, any candidate (from the government or from the
opposition) will be talking about the need for European integration, but at
the same time build up "shady" relations with Russia.
Recently Yushchenko has been trying to correct one of his mistakes - he is
sorting out contacts with Russia, at the same time as Yanukovych as the
power candidate is trying to change its traditional interpretation - both
pro-Russian and anti-Western, and this also reflects on the staff decisions
of both politicians. By that I mean, first and foremost, Yanukovych's new
press secretary [Anna Herman, a former chief of the US-financed Radio
Liberty Ukrainian Service bureau in Kiev] and the head of Yushchenko's
election campaign [a former USDP leader, Oleksandr Zinchenko].
KUCHMA MAY STAY, ACCORDING TO RUMOURS
It is interesting that officials in virtually all regions of Ukraine believe
that the power candidate at the elections will be not Yanukovych, but
Kuchma. It is possible that this view is strengthened by the fact that, as
they say, meetings with the governors in Kiev, at the invitation of the
president's administration, have become a regular thing.
Nevertheless, one gets the impression that the subject of Kuchma's third
term is being specially heated up. There is an opinion that this is being
done by the "Donetsk group" so they can see in advance who the "turncoats"
are. However, much more realistically, these views are being formed because
the president himself has still not decided on the scenario for change (or
non-change) of power. When Kuchma says that he himself would like to see a
"Ukraine without Kuchma", this is more like irony. Taking into account the
president's power and influence, all the other politicians, as one people's
deputy said, are just blind kittens.
In this sense, the present week might bring a certain clarity to the
political situation, in the first place on the question of political reform.
What sort of contacts there are between Yushchenko and the authorities (or
rather the desire not to upset relations with its influential
representatives) will be shown by the voting (in particular Our Ukraine's
votes) on political reform. Second, before the trip to the NATO summit
(where Kuchma may meet Bush), they say he will also have a meeting with
Putin. (END)
==========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER FOURTEEN
==========================================================
14 . LETTER TO THE EDITOR: BAN ON RUSSIAN POP MUSIC

Letter to the Editor by Natalia Tailikh, Berlin, Germany
The Independent, London, UK, Wednesday, Jun 30, 2004

Sir: I am writing to express my displeasure with Andrew Osborn's article
"Ukrainian nationalists battle to get Russian pop hits off buses" (21 June).
The author goes so far as to call the ban on Russian pop songs on minibuses
"cultural and linguistic fascism". Mr Osborn fails to mention how offensive
this Russian "pop" is - the most popular themes of such songs are life in
prison and lawlessness, and the songs often contain foul language.

True, Ukraine has a large Russian minority whose rights, including
linguistic rights, have to be protected, and they are. As Mr Osborn admits,
Russian is very dominant in the Ukrainian media and everyday life, and there
are Russian schools in almost every city.

There is a large Ukrainian minority in Russia. Are they able to exercise
their rights equally freely? (END)
==========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER FIFTEEN .
==========================================================
15. CRIMEAN TATARS DEMAND BACK THEIR LAND IN UKRAINE

AP Online, Kiev, Ukraine, Tuesday, Jun 29, 2004

KIEV - Tatar protesters demanded the return of their ancestral land in
Ukraine's Crimean peninsula Tuesday, in the latest sign of unrest between
ethnic Tatars and the Slavic population, news reports said.

Crimean Tatars placed seven tents in front of the government's building in
the regional capital of Simferopol, saying they would not leave until they
were given land that now is home to numerous Black Sea resorts near Alushta,
the ITAR-Tass news agency said. Tatar authorities also announced that a
similar protest action would be held in Alushta next Monday, according to
ITAR-Tass.

Tempers flared in April in the region, sparking ethnically motivated fights
in Simferopol that injured several people. Last month, Tatars marked the
60th anniversary of the ethnic group's exile from the Crimean peninsula by
Soviet authorities and demanded greater rights for those who have returned.

During the rally, Hennadiy Udovenko, the head of Ukraine's National
Committee for Human Rights, accused the authorities in the former Soviet
republic of doing too little to help the 250,000-strong Crimean Tatar
community.

Crimean Tatars, who were deported en masse from the peninsula to Central
Asia in 1944, were allowed to return only shortly before the Soviet collapse
in 1991. They complain that in recent years they have encountered
difficulties in obtaining citizenship, finding jobs and getting back their
land. (am/mb) (END)
==========================================================
ACTION UKRAINE REPORT-04, No. 107: ARTICLE NUMBER SIXTEEN
==========================================================
16. WHY RUSSIA GAINS FROM A YUSHCHENKO VICTORY

COMMENTARY By Taras Kuzio
The Moscow Times, Mos, Russia, Wednesday, June 30, 2004

It is no big secret that Ukraine's new president will be one of the
following: Our Ukraine leader Viktor Yushchenko, Prime Minister Viktor
Yanukovych or Communist Party leader Petro Symonenko. These three
candidates consistently lead in all polls.

Of these three candidates, whose victory would best serve Russia's national
interests?

In the 1994 election, Russia unequivocally backed Leonid Kuchma who ran on a
pro-Russian platform against the "nationalist" incumbent Leonid Kravchuk.
The 1999 election in Ukraine was a rerun of the 1996 Russian presidential
election, with the incumbent Kuchma beating the Ukrainian Communist Party
leader.

In both elections, Russia's faith in Kuchma turned out to be misplaced. The
outcome will be the same if Moscow backs Yanukovych, Kuchma's choice as
successor, in the Oct. 31 vote.

Despite using pro-Russian rhetoric to come to power in 1994, Kuchma quickly
shifted to a pro-U.S. and pro-NATO position. In 1999, Kuchma was re-elected
on a pro-European integration platform. Just as in 1994, these slogans
proved to be empty rhetoric: A year after re-election, Kuchma again reneged
on his election promises and re-oriented Ukraine away from the West towards
Russia and the CIS.

Russia might consider this a strategic victory. After all, it culminated in
Ukraine signing the CIS Common Economic Space agreement last September.
But, if this is how Russia views Kuchma's conversion, they would be as badly
mistaken as they were when they believed his pro-Russian election platform
in 1994. Kuchma deceived Ukrainian voters and Russia in 1994 and 1999
because the primary strategic objective of Ukraine's "multi-vector" foreign
policy has been to keep Kuchma and his small clique in power. To keep Kuchma
in power has meant that Ukraine's foreign policy swings according to his
personal predicament.

During his first term in office, Kuchma felt threatened domestically by the
Communist Party and externally by Russia. He therefore aligned with NATO and
the United States. During his second term, Kuchma became internationally
isolated during the "Kuchmagate" scandal and then over his authorization of
the sale of Kolchuga radars to Iraq. The United States became the main
threat to Kuchma and he shifted his allegiance towards Russia.

In an attempt to improve relations with the United States, however, Kuchma
backed the U.S.-led invasion of Iraq, where Ukraine now has the largest
non-NATO member military force. This was a true example of Ukraine's
"multi-vector" foreign policy in action. First Ukraine sent military
equipment to Saddam Hussein and then it joined in the U.S.-led occupation
force that toppled him.

Russia may still be tempted to put its backing behind Yanukovych. After all,
he is from the pro-Russian Donbas. But, if it does, Russians would be again
deluding themselves. Yanukovych would continue Kuchma's high level deception
vis-à-vis both Russia and the West. Yanukovych's foreign policy would be
neither pro-Russian nor pro-Western but simply pro-Yanukovych.

One of the biggest myths in Russia surrounds the need to support any
presidential candidate in Ukraine who opposes the "anti-Russian
nationalist." Such a label was attached to Kravchuk in 1994 and has been
pinned on Yushchenko this year.

The degree to which these labels are meaningless can be seen in Kravchuk's
evolution. Kravchuk, the alleged former "nationalist," is today a leading
figure and the head of the parliamentary faction of Viktor Medvedchuk's
Social Democratic United Party. Medvedchuk has good contacts in President
Vladimir Putin's administration and often touts his party as the most
"pro-Russian" party in Ukraine.

Kravchuk never experienced any road to Damascus-style conversion. In the
course of his political life, he evolved from Communist Party ideologist to
a "nationalist" aligned with the center-right Rukh, then he became a member
of the Liberal Party and now is in Medvedchuk's party. The thread linking
all of this is a lack of conviction in anything except power and money.

Yanukovych's lack of any personal convictions are even more pronounced.
The Party of Regions that he leads is the most ideologically amorphous among
pro-Kuchma amorphous center parties.

The only factor that unites Kravchuk, Kuchma, Medvedchuk, Yanukovych
and his allies is state nationalism. This nationalism refuses to share power
with its domestic opponents or with foreign governments, whether Russian
or American.

This nationalism is evident in the manner in which Russia and the West were
sidelined in the privatization of Kryvorizhstal in June. No foreign bids
ever had a chance of being successful as the purpose was to both privatize
the plant to Ukrainian oligarchs and to reward Kuchma's allies -- one of
whom happened to be his son-in-law, Viktor Pinchuk. Pinchuk's business
partner is Renat Akhmetov, the main oligarch behind Yanukovych's Donbas
clan.

Another example of such anti-Russian business activities is the planned
re-nationalization of Ukraine's largest mobile phone operator, UMC. UMC is
owned by the Russian company MTS.

The main lobbyist for the re-nationalization of UMC is Sergei Lyovochkin, a
presidential adviser who is a member of Yanukovych's Donbas clan. The
Yanukovych government is again showing its opposition to allowing foreign
(whether Russian or Western) business interests to participate in Ukraine's
economy.

Russian readers might be surprised to read that the decision to privatize
UMC was actually made during Yushchenko's tenure as prime minister (which
was also when the government first started paying Ukraine's energy debts).

Ukraine's October elections are likely to run to a second round in November
when Yushchenko will most likely face Yanukovych. If Russia decides to back
Yanukovych it should do so knowing that he would continue Kuchma's deception
with Russia and the West. If it decides to throw its support behind
Yushchenko, it will have chosen a different type of politician, not cut from
the same cloth as Kravchuk, Kuchma and Yanukovych.

In an open letter in Nezavisimaya Gazeta this month, Yushchenko wrote that
it is time Ukrainian-Russian relations progressed to a new level,
characterized by "extreme honesty and openness."

Russia should, thus, conclude that its national interests are best served by
a Yushchenko victory. (END)
-------------------------------------------------------------------------
Taras Kuzio, a visiting professor at the Elliott School of International
Affairs, George Washington University, contributed this comment to The
Moscow Times. http://www.moscowtimes.ru/stories/2004/06/30/008.html
=======================================================
ARTICLES ARE FOR PERSONAL AND ACADEMIC USE ONLY
==========================================================
INFORMATION ABOUT "THE ACTION UKRAINE REPORT"-04
"Raising the Level of Awareness, Visibility and Information
About Ukraine and Ukrainian Issues-----Around the World"
A Reader Financially Supported Publication

"THE ACTION UKRAINE REPORT"-04, is an in-depth news and analysis
newsletter, produced by the www.ArtUkraine.com Information Service (ARTUIS)
The report is distributed worldwide free of charge using the e-mail address:
ArtUkraine.com@starpower.net. Please make sure this e-mail address is
cleared for your SPAM filter. Each of our incoming and outgoing e-mails are
scanned for viruses. Our e-mail addresses and subscriber information is not
shared with or sold to anyone. Suggestions and "Letters-to-the-editor" are
always welcome. LINK: http://www.artukraine.com/aur/aur1.htm.

"THE ACTION UKRAINE REPORT"-04 SPONSORS:
.1. ACTION UKRAINE COALITION (AUC): Washington, D.C.,
http://www.artukraine.com/auc/index.htm; MEMBERS:
A. UKRAINIAN AMERICAN COORDINATING COUNCIL,
(UACC), Ihor Gawdiak, President, Washington, D.C., New York, NY
B. UKRAINIAN FEDERATION OF AMERICA (UFA),
Zenia Chernyk, Chairperson; Vera M. Andryczyk, President; E.
Morgan Williams, Executive Director, Huntingdon Valley, Pennsylvania.
http://www.artukraine.com/ufa/index.htm
C. U.S.-UKRAINE FOUNDATION (USUF), Nadia Komarnyckyj
McConnell, President; John A. Kun, VP/COO; Markian Bilynskyj, VP,
Dir. of Field Operations; Kyiv, Ukraine and Washington, D.C., website:
http://www.usukraine.org .
2. UKRAINE-U.S. BUSINESS COUNCIL, Kempton Jenkins,
President, Washington, D.C.
3. KIEV-ATLANTIC GROUP, David and Tamara Sweere, Daniel
Sweere, Kyiv and Myronivka, Ukraine, 380 44 295 7275 in Kyiv.
4. POTENTIAL, the launching of a new business journal for Ukraine.
http://www.usukraine.org/potential.shtml
----------------------------------------------------------------------------
Kyiv vs. Kiev-----SPELLING POLICY--Chornobyl vs.Chernobyl
THE ACTION UKRAINE REPORT" uses the spelling KYIV (Ukrainian)
rather than KIEV (Russian), whenever the spelling decision is under our
control. We do not change the way journalists, authors, reporters, the news
media spell these words or the other words they use in their stories.
TO SUBSCRIBE (FREE)
If you know of one or more persons you think would like to be added to
the distribution list for "THE ACTION UKRAINE REPORT"-04 please
send us their names, country of residence, and e-mail contact information.
We welcome additional names. To subscribe please send a subscription
request e-mail to Morgan Williams, morganw@patriot.net. Past issues of
"THE ACTION UKRAINE REPORT"-03 (125 reports) and UR-04 will
be sent upon request. Let us know if you want the Report sent to a different
e-mail address. Please let us know if you are receiving more than one copy
of the Report. LINK: http://www.artukraine.com/aur/aur1.htm
TO UNSUBSCRIBE
UNSUBSCRIBE: If you do not wish to receive future editions of
"THE ACTION UKRAINE REPORT"-04, up to five times per week,
please be sure and notify us by return e-mail to morganw@patriot.net.
PUBLISHER AND EDITOR
Mr. E. Morgan Williams, Coordinator, Action Ukraine Coalition (AUC);
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.;
Publisher and Editor, www.ArtUkraine.com Information Service (ARTUIS),
http://www.ArtUkraine.com Ukrainian News and Information Website;
CONTACT: P.O. Box 2607, Washington, D.C. 20013,
Tel: 202 437 4707, morganw@patriot.net
====================================================