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 120
Action Ukraine Coalition (AUC), Washington, D.C.
Ukrainian Federation of America (UFA), Huntingdon Valley, PA
morganw@patriot.net, ArtUkraine.com@starpower.net (ARTUIS)
Washington, D.C.; Kyiv, Ukraine, WEDNESDAY, July 21, 2004

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

1. STANDARD & POOR'S UPGRADES UKRAINE TO B PLUS
By Pýivi Munter, Financial Times, London, UK, Tuesday, July 20, 2004

2. MORGAN STANLEY AND DEUTSCHE BANK HANDLE SALE OF
USD200 MILLION IN EUROBONDS FOR NEW KYIV PODIL BRIDGE
By Viktor Riasnyi, Ukrainian News, Kyiv, Ukraine, Thursday, July 15, 2004

3. KYIV TO PAY USD 0.95 MILLION TO DEUTSCHE BANK AND
MORGAN STANLEY AS COMMISSION ON EUROBOND ISSUE
$400,000 alloted for expenses; Baker & McKenzie handles legal work
By Viktor Riasnyi, Ukrainian News, Kyiv, Ukraine, Thursday, July 15, 2004

4. UKRAINE INTERNATIONAL AIRLINES ENDS 2003
WITH LOSSES OF UAH 5.1 MILLION
Yaroslav Zahreba, Ukrainian News, Kyiv, Ukraine, Wed, July 21, 2004

5. POLISH INVESTMENTS UKRAINE AND RUSSIA EXCEED $100M
Polish News Bulletin, Warsaw, Poland, Tuesday, July 20, 2004

6. UKRAINE, PERU STRIKE DEAL IN AIRCRAFT INDUSTRY
Interfax-Ukraine news agency, Kiev, in Russian, 6 Jul 04
BBC Monitoring Service, UK, in English, Friday, July 16, 2004

7. BUSINESS TERRORISM UKRAINE: VOLIA ACCUSES TAX
INSPECTORATE OF ILLEGAL WITHDRAWAL OF DOCUMENTS
Anastasia Savytska, Ukrainian News, Kyiv, Ukraine, July 16, 2004

8. ROMANIA VOICES "HOPE" ONCE AGAIN AN ACCORD CAN
BE REACHED WITH UKRAINE ON DANUBE CANAL ISSUE
ROMPRES news agency, Bucharest, Romania, Tuesday, July 20, 2004

9. UKRAINIAN PRESIDENTIAL CANDIDATE YUSHCHENKO
CREATES WORKING GROUP ON IMPROVING MINE SAFETY
Interfax-Ukraine news agency, Kiev, Ukraine, in Russian, 20 Jul 04
BBC Monitoring Service, UK, in English, Tuesday, July 20, 2004

10.UKRAINIAN BANKER BIDS $825,000 FOR THOROUGHBRED COLT
Alexander Barese, from Kiev, Ukraine, new to Throughbred racing
Throughbred Times, Lexington, Kentucky, Tuesday July 20, 2004

11. RUSSIAN SPIN DOCTORS FLOCK TO UKRAINE
DUE TO BAD POLITICAL AND ELECTION MARKET AT HOME
TV 5 Kanal, Kiev, Ukraine, in Ukrainian, 20 Jul 04
BBC Monitoring Service, UK, in English, Tuesday, July 20, 2004

12. ALL UKRAINIANS, STAYING ABROAD, WILL HAVE
OPPORTUNITY TO VOTE ACCORDING TO FOREIGN MINISTRY
UNIAN, Kyiv, Ukraine, Tuesday, Tuesday, July 20, 2004

13. ASSAILANTS ATTACK A REGIONAL ELECTION CENTER OF
KEY UKRAINIAN PRESIDENTIAL ELECTION CANDIDATE
Associated Press Worldstream, Kiev, Ukraine, Tuesday, July 20, 2004

14. UKRAINIAN INSTITUTE OF AMERICA TO HONOR THE
HEAVYWEIGHT BOXERS VITALI AND WOLODIMIR KLITSCHKO
Ukrainian Institute of America (UIA), New York, NY, Tue, July 20, 2004

15. UKRAINE: SOROCHYNAKA TRADE FAIR AUGUST 18-22, 2004
UNIAN, Kyiv, Ukraine, Monday, July 19, 2004

16. DANGEROUS DESTINATIONS
Andrew Evans, is the author of a new Bradt travel guide on Ukraine
By Laura Walsh, Associated Press
Hartford, Connecticut, Monday, July 19, 20004
========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER ONE
========================================================
1. STANDARD & POOR'S UPGRADES UKRAINE TO B PLUS

By Pýivi Munter, Financial Times, London, UK, Tuesday, July 20, 2004

Standard & Poor's on Tuesday raised Ukraine's international credit rating
from B to B plus, citing the country's strong economic prospects. In the
first half of this year, the Ukrainian economy grew at its fastest pace
since the collapse of the Soviet Union, with gross domestic product up 12.7
per cent on the year.

"The upgrade is supported by the country's continued improvement in external
liquidity and government debt levels, together with its . . . robust
economic performance and growth potential," said Helena Hessel, credit
analyst at S&P.

The upgrade in the speculative grade category comes as Ukraine prepares to
sell $600m or $500m of international floating-rate notes.

S&P's upgrade brings Ukraine's rating to the same level as Turkey's and
Brazil's, although its bonds are trading at higher prices thanks to its
smaller debt burden. Ukraine's 10-year dollar bonds were yesterday yielding
a spread of 372 basis points over US Treasuries.

Although the country's economic growth is expected to remain fast, S&P said
credit quality was constrained by political uncertainty ahead of the
presidential elections in October. "Further improvement in creditworthiness
is predicated on significant improvement in the political situation," Ms
Hessel said.

The new rating brings S&P's assessment of Ukraine's credit risk into line
with Moody's and follows wider improvement in the creditworthiness of
countries in the Commonwealth of Independent States.

In May, S&P raised Kazakhstan, another former Soviet Republic, to the lowest
investment grade category of Triple B minus, one notch above neighbouring
Russia, whose BB plus rating it reaffirmed this month. (END)(ARTUIS)
========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER TWO
The Action Ukraine Report...Major source of news about Ukraine
========================================================
2. MORGAN STANLEY AND DEUTSCHE BANK HANDLE SALE OF
USD200 MILLION IN EUROBONDS FOR NEW KYIV PODIL BRIDGE
$400,000 Alloted for Expenses; Baker & McKenzie handles legal work

By Viktor Riasnyi, Ukrainian News, Kyiv, Ukraine, Thursday, July 15, 2004

KYIV - The Kyiv City Administration on July 14 sold to western investors its
seven-year bonds with a 8.625% annual interest for USD 200 million through
authorized Morgan Stanley and Deutsche Bank. Ukrainian News learned this
from a source positioned close to the Administration.

Kyiv mayor Oleksandr Omelchenko is expected to sign a relevant loan
agreement with the representatives of Morgan Stanley and Deutsche Bank at
around 14:00 on Thursday. Kyiv finished the road show of its Eurobonds at
financial centers in Western Europe and the United States early this week.

Kyiv plans to transfer the funds raised from the their sale through special
currency accounts that it has opened with Khreschatyk Bank. According to
the international rating agency Standard & Poor's, the redemption date of
these bonds is July 2011.

As Ukrainian News earlier reported, Standard & Poor's in July assigned a
long-term B rating to Kyiv's Eurobonds, which are being issued this year in
the volume of USD 200 million. The Kyiv City Administration had earlier
selected Deutsche Bank and Morgan Stanley as the winners of a tender for
the right to manage the floatation.

Baker & McKenzie company (Great Britain) was selected as consultant on
legal issues related to the Eurobonds issue. Kyiv plans to spend the raised
funds on construction of the Podil Bridge and on implementation of the
garbage recycling program in Kyiv.
========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER THREE
Thousands now rely on The Action Ukraine Report for their news
========================================================
3. KYIV TO PAY USD 0.95 MILLOIN TO DEUTSCHE BANK AND
MORGAN STANLEY AS COMMISSION ON EUROBOND ISSUE
$400,000 Alloted for Expenses; Baker & McKenzie handles legal work

Inna Sokolovska, Ukrainian News, Kiev, Ukraine, July 16, 2004

KYIV - The Kyiv municipal administration will pay USD 0.95 million to
Deutsche Bank and Morgan Stanley, the lead managers of the issuance of
Kyiv's USD-200-million Eurobonds, as their commission for managing,
underwriting, and selling the bonds.

This is stated in an agreement that was signed on Thursday, a text of which
Ukrainian News obtained. The commission amounts to 0.475% of the
volume of the Eurobonds.

"...[Kyiv] agrees to pay the joint lead managers (Deutsche Bank and Morgan
Stanley) a commission equal to 0.475% of the total volume of the Eurobonds
on the date of completion of the bond issue (July 22)," the agreement
states.

According to Kyiv's Mayor Oleksandr Omelchenko, Kyiv expects to receive
USD 200 million for the Eurobonds between July 22 and 24. The money will be
transferred into a special account opened with the Khreschatyk bank.

Moreover, since the lead managers of the Eurobond issue (Deutsche Bank and
Morgan Stanley) used the bank Bayerische Hypo- und Vereinsbank AG as the
issuer of the securities (specifically, Bayerische Hypo- und Vereinsbank AG
issued certificates of participation for USD 200 million for crediting
Kyiv), Kyiv will pay Bayerische Hypo- und Vereinsbank AG for its services.

According to the terms of the agreement, the lead managers of the Eurobond
issue also have the right to charge Kyiv up to USD 400,000 for expenses and
other expenditures connected with the Eurobond issue.

The agreement names Deutsche Bank and Morgan Stanley as the lead managers
of the Eurobond issue, Bayerische Hypo- und Vereinsbank AG and Khreschatyk
bank as senior co-lead managers, and Parex Bank as a co-manager.

As Ukrainian News earlier reported, Kyiv sold USD 200 million in seven-year
bonds to Western investors on July 14 at the annual yield rate of 8.625%
through Morgan Stanley and Deutsche Bank.

Kyiv completed the road show of presentation of the Eurobonds in Western
European and United States financial centers early this week. The Standard &
Poor's rating agency assigned its long-term B rating to the Kyiv Eurobonds
in July.

The Baker & McKenzie company (Great Britain) was selected as consultant on
legal issues related to the Eurobonds issue.

Kyiv plans to spend the money raised through the issuance of the Eurobonds
on construction of the Podil Bridge and implementation of a waste processing
program. (END) (ARTUIS)
========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER FOUR
Send "The Action Ukraine Report" around the World
========================================================
4. UKRAINE INTERNATIONAL AIRLINES ENDS 2003
WITH LOSSES OF UAH 5.1 MILLION

Yaroslav Zahreba, Ukrainian News, Kyiv, Ukraine, Wed, July 21, 2004

KIEV - Ukraine International Airlines, one of the three largest air
companies in Ukraine, has finished 2003 with losses of UAH 5.087
million. [Just under 1 million USD] This was disclosed in the "TOP 100"
list of Ukrainian enterprises with largest profits, annually published by
the Investgazeta newspaper.

According to the list, company's incomes rose by 27.4% or UAH 110.05
million in 2003 compared with 2002, to UAH 511.989 million. As Ukrainian
News earlier reported, the company finished 2002 with net profits of UAH
3.834 million. The company increased passengers transportation by 36%
in 2003 compared with last year, to 510,000 passengers.

Ukrainian International Airlines' major shareholders are the State Property
Fund with 61.6% of shares, Austrian Airlines - 22.5% of shares, the Debis
AerFinance company - 6% stake and the European Bank for Reconstruction
and Development - 9.9% of shares. (END) (ARTUIS)
========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER FIVE
Join the free distribution list of The Action Ukraine Report
========================================================
5. POLISH INVESTMENTS IN UKRAINE AND RUSSIA EXCEED $100M

Polish News Bulletin, Warsaw, Poland, Tuesday, Jul 20, 2004

WARSAW - Polish companies increased their worldwide investments almost
two-fold in 2003 compared to the previous year, according to the National
Bank of Poland (NBP). The $400m reached last year, mainly thanks to the
three-or-four-fold increase in expenditure in Russia and Ukraine, is only
the beginning.

In the coming months the value of factories built by Polish firms in the two
countries may reach several hundred million dollars. Among companies whose
eastern plants are already operating at full capacity is the construction
materials producer Atlas, which exactly one year ago celebrated the opening
of its plant in Dubna, 100 km from Moscow. "In Russia, Atlas products can be
bought at any supermarket, shop or market place. Our factory will in the
near future become the outpost for exports to Kazakstan, Mongolia or perhaps
even further," said Marek Pastusiak, Atlas Group's representative for
eastern markets.

Leasing firm Carcade, controlled by Leszek Czarnecki, one of the richest
Poles and founder of the European Leasing Fund (EFL), a year ago faced large
debts and employed only 15 people. Today it has 150 employees and the
largest distribution network in Russia. "Carcade followed the strategy used
by EFL in Poland 10 years ago. In three years we will be a leader in the
Russian sector of small and medium-sized enterprises," said Czarnecki. He is
urgently looking for a mid-sized Russian bank specialising in car loans.

Beverage and mineral-water producer Hoop has bought for almost $11m a
50-percent stake in the Moscow-based beverage producer Megapack. Car
upholstery maker Inter Groclin Auto is expanding its plant in Uzgorod, in
which it has already invested $7m. Clothes designer and distributor LPP
(owner of the Reserved brand) has opened stores in Moscow, Kiev and Lvov,
and plans further expansion.

But the biggest Polish investment in the nearest future will come from
Pfleiderer Grajewo, a leading producer of furniture panels, which is about
to start a project in Russia worth around $100m. A factory in the Novgorod
region will be built within two years. Polish companies are tempted to
expand east by rapid economic growth, huge markets and lack of competition
from western corporations. Prices and margins in Poland's eastern neighbours
are also relatively high, which ensures a fast return on investments. (END)
=========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER SIX
Ukrainian Information Website: http://www.ArtUkraine.com
=========================================================
6. UKRAINE, PERU STRIKE DEAL IN AIRCRAFT INDUSTRY

Interfax-Ukraine news agency, Kiev, in Russian, 6 Jul 04
BBC Monitoring Service, UK, in English, Friday, Jul 16, 2004

KIEV - Ukraine is to help Peru to extend the flying capability of the An-32
planes that the Peruvian security agencies are using. An accord to that
effect was reached following talks between visiting Peruvian Foreign
Minister Manuel Rodriguez Cuadros, Ukrainian Minister of Industrial Policy
Oleksandr Neustroyev and the heads of the Antonov scientific and technical
aviation works and the Kiev Aviant state aircraft company.

A working group of Ukrainian experts is due to leave for Peru any time soon
to discuss the transfer of new Ukrainian technologies to Peruvian colleagues
in order to maintain the planes' flying capability. Work is to be done at
Peruvian plants.

During a visit to the Hostomel airfield belonging to the Antonov works,
Cuadros also familiarized himself with the promising research and
development of the Ukrainian aircraft industry: the An-124-100 Ruslan heavy
transport plane, the An-140 medium-range plane, the An-74TK-300
transport-convertible plane and the new regional An-148 plane.

Having familiarized himself with the Ukrainian technologies in aircraft
building, Cuadros confirmed [Peru's] interest in expanding the presence of
Ukrainian planes of new modifications on the Peruvian market. According to
tentative expert estimates, over 30 Ukrainian An-32 and An-26 planes are
now being actively used in Peru. (END) (ARTUIS)
=========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER SEVEN
Become a financial sponsor of The Action Ukraine Report
=========================================================
7. BUSINESS TERRORISM UKRAINE: VOLIA ACCUSES TAX
INSPECTORATE OF ILLEGAL WITHDRAWAL OF DOCUMENTS

Anastasia Savytska, Ukrainian News, Kyiv, Ukraine, July 16, 2004

KYIV - The largest operator of cable television in Kyiv, Volia, accuses the
Dniprovskyi district tax inspectorate of illegal withdrawal of the company's
documents. The company's lawyer informed Ukrainian News about this.

According to his words, representatives of the tax inspectorate decided to
withdraw all of the company's documents on Friday without search warrants or
fulfillment of any relevant procedures, threatening with intervention of
law-enforcement authorities. "The company is under strong pressure," the
lawyer said.

The company's lawyer specified that according to the law every document that
is being withdrawn must be listed in an inventory and in the protocol.

On Thursday officers of the tax inspectorate were withdrawing documents in
accordance with the procedure, however, they decided to violate it severely
now. "We got an order to withdraw all documents within several hours," the
lawyer cites words of the tax inspectorate's officers.

The lawyer said that at present officers of the tax inspectorate are packing
all Volia-Cable's documents of into rubbish bags and take them away,
threatening to summon enforcement support and in fact performing the search
without relevant warrant and protocol. "Protocol wasn't drawn up," he lawyer
stressed.

As Ukrainian News earlier reported, Volia has accused the Kyiv prosecutor's
office on Friday of delaying the court ruling on the company's operation
without a license. The prosecutor's office of Kyiv disclosed on June 10 that
it had completed investigation into the criminal case against executives of
the Volia company on the charge of engaging in broadcasting activity until
October 16, 2003 without first obtaining the corresponding license, which
inflicted losses upon the state in the amount of UAH 10 million. Volia
regards the charges of the prosecutor's office as groundless.

The Kyiv Economic Court had rejected a request by the Kyiv prosecutor's
office to recover UAH 9.808 million from Volia, under the charge of engaging
in operational activities without first attaining a license, which was filed
separately from the criminal case that was launched against the company for
operating without a license.

Besides the criminal case on unlicensed operation, the Kyiv prosecutor's
office opened three other criminal cases against Volia's executives relating
to the spread of pornography materials.

The Volia company provides cable television broadcasting services under the
brand name Volia Cable and digital broadcasting under the brand name Volia
Premium TV. It also provides Internet access via cable networks under the
Volia Broadband trademark. Volia's cable network covers more than 500,000
customers in Kyiv. (END) (ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER EIGHT
Ukrainian Information Website: http://www.ArtUkraine.com
=======================================================
8. ROMANIA VOICES "HOPE" ONCE AGAIN AN ACCORD CAN
BE REACHED WITH UKRAINE ON DANUBE CANAL ISSUE

ROMPRES news agency, Bucharest, Romania, Tuesday, July 20, 2004

BUCHAREST - The Romanian authorities voice hope once more that the
Ukrainian side will understand the need for a fact finding visit on Bastroe
Canal, so that the two countries start carrying out the proposed activity in
a short period of time, reads a Tuesday [20 July] release with the Foreign
Ministry (MAE).

The Romanian authorities, in trying to clarify the issue related to the
construction of Bastroe Canal, plan to organize a meeting with officials of
the Odessa Regional State Administration and pay together a fact-finding
visit to Bastroe Canal.

Such a visit, proposed for 12-16 July 2004, would have been aimed at
assessing the stage of the works and their effects on the environment, given
that the Romanian side has constantly expressed its concern at the effects
that such a construction might have on the Danube Delta's ecosystem.

Despite constant approach by the Romanian embassy in Kiev on this matter,
the Ukrainian side rejected the Romanian officials' proposal, under the
pretext of a busy agenda of the Ukrainian officials, suggesting in exchange
a possible meeting on this issue, between the two countries' environment
ministries, that should be held sometimes "in a near future".

"The Ukrainian side's answer is hard to explain, especially given that at a
news conference occasioned by the second Ministerial Conference of the
Danube Cooperation Process held in Bucharest on 14 July 2004, the
Ukraine's representative expressed his country's availability to allow all
those interested, the press included, to visit the construction site," reads
the MAE release. (END) (ARTUIS)
========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER NINE
Send the The Action Ukraine Report to your friends in Ukraine
========================================================
9. UKRAINIAN PRESIDENTIAL CANDIDATE YUSHCHENKO
CREATES WORKING GROUP ON IMPROVING MINE SAFETY

Interfax-Ukraine news agency, Kiev, Ukraine, in Russian, 20 Jul 04
BBC Monitoring Service, UK, in English, Tuesday, July 20, 2004

KIEV - Leader of the [opposition] Our Ukraine bloc and presidential
candidate Viktor Yushchenko has expressed his condolences to the families
of the deceased miners [killed in a methane explosion yesterday].

He instructed a member of his team, the first deputy chairman of the
parliamentary Committee for Fuel and Energy Sector, Mykola Martynenko,
to create a working group to work out a set of additional measures to
increase
safety at coal mines. In a fortnight, Martynenko is to submit specific
proposals to Yushchenko, the Our Ukraine press service said.

The leader of Our Ukraine also instructed the head of the Budget Committee
in parliament, MP Petro Poroshenko, to analyse the effectiveness of state
funds allocated for supporting the coal industry, in particular for
increasing the safety of miners. (END) (ARTUIS)
=========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER TEN
Send us names for the distribution list
=========================================================
10.UKRAINIAN BANKER BIDS $825,000 FOR THOROUGHBRED COLT
Alexander Barese, from Kiev, Ukraine, new to Throughbred racing

Throughbred Times, Lexington, Kentucky, Tuesday, July 20, 2004

LEXINGTON, KY - A Ukrainian banker who is new to Thoroughbred
racing stepped up to acquire a gray Cozzene colt for $825,000 on Tuesday
at the Fasig-Tipton Kentucky summer yearling sale.

The price exceeds all others before the colt, Hip Number 339, passed
through the ring at Newtown Paddocks.

John Gaspar of Lane's End Bloodstock handled bidding on the colt,
who is a half brother to classic hopeful St Averil, who was
scratched from the Kentucky Derby (G1) two months ago after
experiencing lingering foot problems.

Alexander Garese, who is from Kiev, Ukraine, originally contacted
the agent by e-mail, Gaspar said, adding that the Cozzene colt is
the first for the banker.

"I didn't think we'd have to spend this much on one horse, but we
had bid on several earlier and didn't get them and I wanted to make
sure we got this one," Gaspar said. "He's a very athletic
individual, and the X rays were the best I've seen in several years."

Produced by 1995 Matchmaker Stakes (G2) winner Avie's Fancy,
by Lord Avie, the New Jersey-bred colt also is a full brother to stakes
winner Our Cozzette.

St Averil won the Santa Catalina Stakes (G2) at Santa Anita Park on
January 17 to propel himself into the classic picture. He followed
up that effort with a nose loss to Preachinatthebar in the San
Felipe Stakes (G2) on March 14 before finishing sixth in the Santa
Anita Derby (G1). The son of Saint Ballado has not raced since then.

Fasig-Tipton also handled the sale of St Averil at its Kentucky
summer yearling venue on a bid of $500,000 from Darby Dan Bloodstock
in 2002. St Averil races for Stan Fulton. (END) (ARTUIS)
----------------------------------------------------------------------
http://www.thoroughbredtimes.com/todaysnews/newsview.asp?
recno=47136&subsec=4 (paste link together)
=========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER ELEVEN
Now a major source of Ukrainian news for thousands around the world
=========================================================
11. RUSSIAN SPIN DOCTORS FLOCK TO UKRAINE
DUE TO BAD POLITICAL AND ELECTION MARKET AT HOME

TV 5 Kanal, Kiev, Ukraine, in Ukrainian, 20 Jul 04
BBC Monitoring Service, UK, in English, Tuesday, Jul 20, 2004

KIEV - A Ukrainian opposition TV channel has said that Russian spin doctors
are coming to Ukraine in search of work during the presidential election
campaign because elections in Russia are nothing but show and political
processes are slowing down following Vladimir Putin's landslide victory in
the presidential election. The following is the text of a report by
Ukrainian television TV 5 Kanal on 20 July:

[Presenter] It turns out that Russian spin doctors are interested in the
Ukrainian presidential election. Yesterday they announced the opening of an
organization called the Russian Club, which is supposed to facilitate the
discussion of Ukrainian affairs by Russian official and unofficial figures.
However, today the opening of the club was cancelled. But we decided to
pay a little more attention to Russian spin doctors anyway.

[Correspondent] The conquering of the Ukrainian market by Russian spin
doctors has entered a new stage. Gleb Pavlovskiy, an adviser to the Russian
president's chief of staff, has arrived in Ukraine. In Kiev, he was met with
rotten eggs, but they were thrown only at a mock-up of the Moscow spin
doctor. Pavlovskiy plans to open the Russian Club, an NGO dealing with the
Ukrainian-Russian affairs. The organizer himself says that his project will
not be any different from western, American and European, NGOs.

[Pavlovskiy] The dozen or dozens, I don't know how many you have, of
American and European NGOs will be joined by a Russian one. This is not
dangerous. We shall be doing the same what the western NGOs are doing here,
but more modestly, present our opinions and make sure that these opinions
are heard. That is all.

[Correspondent] Ukrainian experts explain the influx of Russian colleagues
by the loss of domestic markets. After the latest presidential election,
political processes in Russia are slowing down. Elections look more and more
like they're done for show. That is how Ukrainian political scientist Andriy
Yermolayev explains Moscow's expansion. Also, the new union of Russian
spin doctors is an attempt to create a unified community of experts in the
CIS, he says.

[Yermolayev] They have a package of standardized approaches to the use of
media, administrative and political resources to perform the function of
servicing the preservation of the stable position of the authorities. Of
course, in Ukraine there is a need to help the authorities with saving them
face during the election campaign.

[Correspondent] Ukrainian political experts do not rule out that their
Russian colleagues will use ethnic, religious and geopolitical conflicts
during the election campaign. This is the biggest danger of the influx of
Russian spin doctors, Yermolayev says. Pavlovskiy himself says that this
year they are mostly interested in legitimate elections.

[Presenter] The quintessence of this story is the following: spin doctors
usually work where there is a lot of money. Whether the appearance of
Russian spin doctors in Kiev means that Ukraine now has a lot of money, or
whether money has disappeared in Russia, we do not know. (END)
=======================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER TWELVE
Become of Financial Sponsor of The Action Ukraine Program Today
Please Mail Your Check Today..Your Support Is Needed!
======================================================
12. ALL UKRAINIANS, STAYING ABROAD, WILL HAVE
OPPORTUNITY TO VOTE ACCORDING TO FOREIGN MINISTRY

UNIAN, Kyiv, Ukraine, Tuesday, July 20, 2004

KYIV - All Ukrainians, staying abroad, will have an opportunity to come to
the country's diplomatic representative offices, and to participate in the
election of the Ukrainian President.

According to an UNIAN correspondent, Ukrainian Foreign Ministry (UFM)
press-service director Markiyan Lubkivsky has announced it at a briefing
on Tuesday.

M.Lubkivsky has assured that all the Ukrainian diplomatic institutions
abroad will be ready for carrying out of the Presidential elections. In his
words, at present time the voting is being prepared.

Answering the question of journalists, whether Ukrainians, illegally staying
abroad, will be able to vote, M.Lubkivsky has said that all people, who are
Ukrainian citizens and are abroad, can freely come to the embassy or a
consulate institution, and to vote. (www.UNIAN.net/eng) (END) (ARTUIS)
========================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER THIRTEEN
Send a Check: Keep The Action Ukraine Report Going Around The World
========================================================
13. ASSAILANTS ATTACK A REGIONAL ELECTION CENTER OF
KEY UKRAINIAN PRESIDENTIAL ELECTION CANDIDATE

Associated Press Worldstream, Kiev, Ukraine, Tuesday, Jul 20, 2004

KIEV - Assailants damaged and defaced a regional headquarters of Ukraine's
leading opposition presidential candidate Viktor Yushchenko on Tuesday, the
director of the headquarters said.

Unidentified attackers broke several windows and sprayed anti-Yushchenko
graffiti on the walls of his headquarters in the southern city of Kherson,
its head Valery Tretyakov said. He said police had refused to register his
complaint about the attack. Lherson police refused to comment when reached
by the telephone.

The Oct. 31 presidential vote is expected to be between a showdown between
Yushchenko and Prime Minister Viktor Yanukovych, who has received backing
from incumbent Leonid Kuchma.

Kuchma and the Ukrainian authorities have faced criticism from the
opposition, Western governments and human rights groups for crackdowns
against independent media and political opponents. (nl/av/sbg) (END)
========================================================
ACTION UKRAINE REPORT-04, No.120: ARTICLE NUMBER FOURTEEN
Send a Check: Keep The Action Ukraine Report Going Around The World
========================================================
14. UKRAINIAN INSTITUTE OF AMERICA TO HONOR THE
HEAVYWEIGHT BOXERS VITALI AND WOLODIMIR KLITSCHKO

Ukrainian Institute of America (UIA), New York, NY, Tue, July 20, 2004

NEW YORK - The Ukrainian Institute of America (UIA) will honor
Vitali and Wolodimir Klitschko with its 2004 "Man of the Year" Award, the
Institute has announced. The official awards ceremony, with the Klitschkos
in attendance, is scheduled for late 2004 or early 2005.

The decision to honor the boxing brothers was an obvious choice, according
to Walter Nazarewicz, president of the Institute, continuing the Institute's
tradition of honoring Ukrainians who have excelled in their particular
fields.

"We first met Vitali and Wolodimir in 2002, when their close friend Kyiv
mayor Oleksandr Omelchenko was in town to accept the Man of the Year
Award.

Then, we honored the man who led the rebirth of Ukraine's capital,"
Nazarewicz said, "and this year, we would like to salute the two brothers
who have contributed to Ukraine's international renown in the world of
professional sports."

Vitali is the reigning World Heavyweight Champion of the World Boxing
Council (WBC). Wladimir won Olympic gold for Ukraine in Atlanta in 1996.

Besides their athletic achievements, the brothers have become virtual
goodwill ambassadors for Ukraine. Publicly proud of their Ukrainian
heritage, the brothers-who hold PhD degrees-- are also active in a variety
of charitable endeavors in Ukraine.

The Ukrainian Institute of America Man of the Year award will be presented
at a gala ceremony at the Waldorf-Astoria Hotel in New York City, with
many prominent Americans and Ukrainians expected to attend.

Previous UIA Ukrainian Institute of America Man of the Year award
recipients include Oscar award winner Jack Palance, U.S. General Nicholas
Krawciw and international financier George Soros.

Founded in 1948, the Institute is a nonprofit organization dedicated to
showcasing Ukrainian culture and achievements.

The Institute would like to thank the father and son team of Yaroslav
(Jerry) and Roman Kernitski of the U.S.-based Klitschko Fan Club for
their support in promoting this year's award.

For media inquiries, please contact the Ukrainian Institute of America at
(212) 288-8660 or via e-mail at programs@ukrainianinstitute.org . The
Ukrainian Institute of America is located at 2 East 79th Street (at 5th
Avenue) in New York, NY. (END) (ARTUIS)
======================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER FIFTEEN
Ukrainian Information Website: http://www.ArtUkraine.com
=======================================================
15. UKRAINE: SOROCHYNAKA TRADE FAIR AUGUST 18-22, 2004

UNIAN, Kyiv, Ukraine, Monday, July 19, 2004

KYIV - The National Sorochynska Trade Fair will take place in
Velyki Sorochyntsi village of Myrhorodsky district of the Poltava
Oblast during August 18-22. UNIAN has been reported about it by
"Sorochynsky Yarmarok" Ltd. director Yulia Yermakova.

In her words, today some mass media have spread false information
that, as if the Sorochynska trade fair opened as early as on July 19.
She has completely refuted this information.

In addition, Yu.Yermakova has said that, at present time, over 260
applications for participation from enterprises have been received. (END)
=======================================================
ACTION UKRAINE REPORT-04, No. 120: ARTICLE NUMBER SIXTEEN
=======================================================
16. DANGEROUS DESTINATIONS
Andrew Evans, is the author of new Bradt travel guide on Ukraine

By Laura Walsh, Associated Press
Hartford, Connecticut, Monday, July 19, 20004

HARTFORD, CT - Hilary and George Bradt went off on the traditional
honeymoon getaway to South America and came back with a career
churning out guidebooks to exotic, unusual traveling destinations.

They had relied only on a compass and word of mouth during their own
travels, and hoped publishing "The Little Yellow Book" would provide
some sort of direction for future tourists of the backpacking
variety. The Bradts also were inspired to share their discoveries,
including that of a secret Jesus statue that points to an Inca trail
in Bolivia.

Some 30 years later, Bradt Publications has 76 titles to its name
and specializes in dissecting the most remote, and even dangerous,
of places: Kabul, Baghdad, North Korea and the like. Bradt is
distributed in North America by The Globe Pequot Press in Old
Saybrook.

At age 62, Hilary Bradt, who lives right outside London in
Buckinghamshire, doesn't sugarcoat her travels. While making their
way across Africa, from Cape Town to Cairo, in 1976, the Bradts
were arrested three times - once for photographing a pile of baskets
in a market, and another time for praising capitalism in Ethiopia in
front of an army lieutenant.

"The horror stories are only a tiny fraction of the experience,"
Bradt said.

Still, a smart tourist should always be well-prepared. The Bradt
mini-guide to Kabul, the capital city of Afghanistan, is chock-full
of safety precautions for journalists and aid workers, and even
includes a warning by the British Foreign and Commonwealth Office
against all "nonessential travel" to the city.

Cameras, binoculars and tape recorders should be used with
discretion, and a wandering traveler should be aware of the many
land mines that are hidden within the Afghan countryside.

The guide, though, has its lighter side. It raves about "ashak," a
pasta dish that is saved for feast days, and points travelers to
where they can find a $4 box of cornflakes. It offers this advice
for eating in Kabul: "Peel It, Boil It, Cook It or Forget It."

Hilary Bradt takes enormous pride in her quest for all that is
unknown and scary. She has written the first eight editions to Peru
and Bolivia, and won the British Guild of Travel Writers Award for
her 2000 guide to Madagascar.

She has since retired her hiking boots, and now concentrates on
directing the more than 50 writers who work for Bradt. But her
passion for the wildlife and landscape of Madagascar will keep her
visiting and writing about the country for as long as she can. After
all, only in Madagascar was Bradt forced to eat roasted insects
after wandering around lost for four days in a jungle.

"Madagascar, I'll do forever. I adore the place. I'm more closely
connected with it now," she said.

Andrew Evans, the author of the Bradt book on Ukraine, described
his travel guide as having a life of its own. The 28-year-old spent
three months living in Ukraine in 2002. There, he traveled alone,
meeting locals by sharing compartments on trains, and drawing his
own maps - 40 in total - with a Global Positioning System.

"Anything I wrote about, I had to have a map for," Evans said. "This
is how readers orient themselves."

Part of being a travel writer is being up for anything: Evans once
tagged along on a camping trip with a bunch of boy scouts in the
Gorgany Mountains. On another occasion, he paid $2 to stay at a
cheap hotel in Poltava, and ended up sleeping on the floor, next to
the heater, all night.

Evans, whose dream job is to write for National Geographic, paid
much attention to the history and religion of the country. He
focused on picking out the must-see churches in Ukraine's capital,
Kiev, but made sure to also include one mighty important detail -
bring toilet paper.

"Nine times out of 10 there will be no paper in your toilet stall so
saving paper napkins from restaurants in your pocket is a worthwhile
precaution," he wrote.

Bradt also publishes a series of books dedicated to all things
wacky. There are four Eccentric books in print, with Edinburg and
Oxford on the way. The first edition of Eccentric America sold over
16,000 copies in the United States in under three years, Hilary
Bradt said.

Eccentric America features quirk alerts and state maps littered with
bizarre landmarks. There's the Children's Garbage Museum in
Stratford that has a 24-foot-long, 12-foot-high dinosaur made
entirely of trash, and the annual Stink Fest, which includes an
outhouse race, held in Bradford, Pa., in May.

But writer Jan Friedman says one of her most treasured finds is a
man by the name of Leonard Knight from Niland, Calif. His Salvation
Mountain - made entirely of hay bales, adobe, old paint and window
putty - is three stories high and about a 100 feet wide, one man's
personal tribute to God.

Friedman said Knight's Salvation Mountain was her first taste of
weirdness, and one of the first things she knew she just had to
include in the 2001 edition of Eccentric America.

"I have kind of lived up to Leonard's standards ever since," she
said. "I have just raised the bar on quirkiness so it takes a lot to
impress me."

Friedman said she considered 3,000 entries for the first book, of
which only 1,000 made the cut. She is working on an Eccentric
California and hopes to have it completed by December.

Bradt guides range in price from $9.95 to $24.95. Hilary Bradt
remembers the days when she and her now ex-husband would travel
from city to city, promoting their unique guides to bookstores in
Europe and throughout the United States.

Bradt was an occupational therapist for 15 years before discovering
her knack for travel. "This is hard work, and you need someone who
has just the right sense of humor," Bradt said. "You can't just sit at a
bar and talk to other travelers. You have to do the research."
----------------------------------------------------------------------
http://www.cbsnews.com/stories/2004/07/19/national/main630602.shtml
----------------------------------------------------------------------
"UKRAINE: The Bradt Travel Guide", by Andrew Evans, 2004,
Bradt Travel Guides Ltd., UK, The Globe Pequot Press Inc., USA,
paperback, 328 pages, 13.95 lbs, $19.95.
www.bradt-travelguides.com, ISBN 1 84162 084 X

"Andrew Evans has lived, worked and wandered in Ukraine as a
missionary, consultant, academic, NATO analyst, and travel writer.
He completed his postgraduate work in Russian and East European
studies at Oxford University, where he wrote and lectured on Ukrainian
politics, history and culture. 'Ukraine: The Bradt Travel Guide' is his
first book." (END) (ARTUIS)
=======================================================
ARTICLES ARE FOR PERSONAL AND ACADEMIC USE ONLY
Articles are Distributed For Information, Research, Education
Discussion and Personal Purposes 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 Publication Supported Financially By Its Readers

"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
address is cleared for your SPAM filter. Each of our incoming and outgoing
e-mails are scanned for viruses. Our e-mail addresses and distribution
information is not sold to anyone. Suggestions and "Letters-to-the-Editor"
are always welcome. LINK: http://www.artukraine.com/aur/aur1.htm.

"THE ACTION UKRAINE REPORT" is supported through The Action
Ukraine Program Fund. You can become a financial sponsor of The Action
Ukraine Program Fund. Individuals, corporations, non-profit organizations
and other groups can provide support for the expanding Action Ukraine
Program by sending in contributions.

Checks should be made out to the Ukrainian Federation of America,
(UFA), a private, not-for-profit, voluntary organization. The funds should
be designated for the Action Ukraine Program Fund (AUPF), and
mailed to Zenia Chernyk, Chairperson, Ukrainian Federation of
America (UAF), 930 Henrietta Avenue, Huntingdon Valley, PA
19006-8502. For individuals a contribution of $45-$100 is suggested.
Your contribution to help build The Action Ukraine Program to support
Ukraine and her future is very much appreciated.

"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, launching 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 Join" The Free Distribution List
If you know of one or more persons you think would like to "Join"
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 receive the Report please send a
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 Be Removed" From The Distribution List
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, Executive Director, Ukrainian Federation of America
(UFA); Coordinator, The Action Ukraine Coalition (AUC);
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
=====================================================