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Action Ukraine Report

"THE ACTION UKRAINE REPORT"
An International Newsletter
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"

UKRAINE'S SABRE FENCER TRETIAK TAKES OLYMPIC BRONZE

ATHENS: Ukrainian sabre fencer Vladyslav Tretiak has won a bronze medal
at the Olympic Games in Athens. The 24-year-old Tretiak beat Dmitri Lapkes
(Belarus) 15:11 in the Bronze Medal Match. Italy's Aldo Montano won the
Olympic Gold Medal in the event against Zsolt Nemczik of Hungary.

"THE ACTION UKRAINE REPORT" Year 04, Number 141
The 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, TUESDAY, August 17, 2004

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

1. TOP UKRAINIAN TV CHANNELS CONTINUE TO BE HEAVILY
BIASED IN FAVOUR OF PRIME MINISTER VIKTOR YANUKOVYCH
Top Ukrainian TV channels continue to savage opposition candidate.
Carried a series of tendentious and negative stories about Viktor Yushchenko
Source: BBC Monitoring research in English, 14 Aug 04
BBC Monitoring Service, United Kingdom, Sunday, Aug 15, 2004

2. LARGE SUMS OF UNDECLARED INCOME TO BE SPENT ON
UKRAINIAN PRESIDENTIAL ELECTION, NGO SAYS
Most of the huge campaign spending comes from shadow economy
Era, Kiev, Ukraine, in Ukrainian, 6 Aug 04
BBC Monitoring Service, UK, in English, Mon, Aug 16, 2004

3. UKRAINIAN PROSECUTORS OPEN FRAUD CASE
OVER MAYORAL VOTE IN MUKACHEVO
AP Worldstream, Kiev, Ukraine, Monday, August 16, 2004

4. BORYS TARASYUK: WE HAVE SERIOUS REASONS TO BE
CONCERNED OVER THE FATE OF UKRAINE
Will Ukraine finally rid itself of "kuchmizm" (Kuchma's regime) or
will it continue sinking into the abyss of crises?"
Press service of Narodniy Rukh Ukrainy
The People's Movement of Ukraine, Kyiv, Ukraine, Tues, Aug 17, 2004

5. UKRAINE: KUCHMA LEAVES FOR RUSSIA FOR ANOTHER OF
HIS MANY MEETING WITH RUSSIAN PRESIDENT PUTIN
Ruslan Kyrylenko, Ukrainian News, Kyiv, Ukraine, Mon, Aug 16, 2004

6. UKRAINIAN FORMER PRIME MINISTER KINAKH PROMISES
PROSPERITY IF ELECTED PRESIDENT
Holos Ukrayiny, Kiev, Ukraine, in Ukrainian 17 Aug 04; p 5
BBC Monitoring Service, UK, in English, Tuesday, Aug 17, 2004

7. UKRAINE: STATE PROPERTY FUND HEAD IS IMPOVERISHING
THE STATE BUDGET THROUGH HIS UNPROFESSIONAL ACTIONS
ACCORDING TO MP PETRO POROSHENKO
Our Ukraine Website, Kyiv, Ukraine, August, 2004

8. UKRAINIAN PRIVATIZATION CHIEF SAYS THERE WILL
BE NO RE-NATIONALIZATION AFTER ELECTION
Era, Kiev, Ukraine, in Ukrainian, 14 Aug 04
BBC Monitoring Service, UK, in English, Sat, Aug 14, 2004

9. UKRAINIAN PRIVATIZATION CHIEF SAYS STATE PROPERTY
AUCTIONS IMPARTIAL AND TRANSPARENT
TV 5 Kanal, Kiev, in Ukrainian, 11 Aug 04
BBC Monitoring Service, UK, Wednesday, Aug 11, 2004

10. UKRAINE'S INTERIOR MINISTRY SHADOWING
PRESIDENTIAL CANDIDATES
Ukrainian agents caught spying on Viktor Yushchenko
By Taras Kuzio, Eurasia Daily Monitor, Volume 1, Issue 73
The Jamestown Foundation, Washington, D. C., Friday, 13 August 2004

12. UKRAINE: KUCHMA CONFERS YAROSLAV THE WISE ORDER
ON ARCHBISHOP OF ATHENS IN ALL OF GREECE CHRISTODOULOS
Dmytro Symonov, Ukrainian News, Kyiv, Ukraine, Sun, August 15, 2004

12. JAMAICA: NEW POST FOR KENNY?
Benjamin may be Ukraine's first Honorary Consul General to Jamaica
Chester Francis-Jackson, Contributor
Jamaica Gleaner, Kingston, Jamaica, Sunday, August 15, 2004
=======================================================
ACTION UKRAINE REPORT-04, No.141 ARTICLE NUMBER ONE
=======================================================
1. TOP UKRAINIAN TV CHANNELS CONTINUE TO BE HEAVILY
BIASED IN FAVOUR OF PRIME MINISTER VIKTOR YANUKOVYCH

Top Ukrainian TV channels continue to savage opposition candidate.
Carried a series of tendentious and negative stories about Viktor Yushchenko

Source: BBC Monitoring research in English, 14 Aug 04
BBC Monitoring Service, United Kingdom, Sunday, Aug 15, 2004

KIEV - Coverage of the fourth and fifth weeks of the presidential election
campaign (2-14 August) on Ukraine's three national TV channels continued to
be heavily biased in favour of Prime Minister Viktor Yanukovych. As well as
promoting Yanukovych's campaign, state-run UT1, and the privately owned
One Plus One and Inter (the news content of which is widely believed to be
strongly influenced by individuals close to the presidential administration)
also carried a series of tendentious and negative stories about leading
opposition candidate Yushchenko and his entourage.

Meanwhile, the news coverage of channels of ICTV and Novyy - second-tier
channels linked to Viktor Pinchuk, a businessman, MP and son-in-law of
President Leonid Kuchma - was less focussed on the election campaign. They
carried limited but generally neutral coverage of the main presidential
contenders, largely ignoring the attack stories against Yushchenko seen on
the administration-linked channels.

5 Kanal, which is controlled by Yushchenko ally Petro Poroshenko, continued
to devote considerable attention to the election campaign. While clearly
favouring Yushchenko and, to a lesser extent, Socialist Party leader
Oleksandr Moroz, it also gave coverage to the other main candidates and
strove to preserve balance in its reports. When it carried stories attacking
Yanukovych's campaign and the authorities in general, their representatives
were generally given an opportunity to respond to allegations.

UT1, INTER, ONE PLUS ONE

During the fourth week of the campaign (2-8 August), UT1's flagship evening
news bulletin regularly included reports of minor and regional NGOs
endorsing Yanukovych and updates on the campaign to collect signatures in
his support.

Over the week, the programme devoted a total of about 10 minutes to this
sort of positive report on Yanukovych's campaign in addition to its generous
coverage of his activities as prime minister.

UT1's focus on Yanukovych appeared to decline somewhat during the fifth
week (9-14), and on some evenings there were no news items directly devoted
to his campaign. This was especially true after 11 August, when he flew to
Greece for the Olympic Games, which he is attending as head of the National
Olympic Committee. However, he reappeared on 14 August when he met with
the Ukrainian team.

Coverage of Yanukovych's activities as prime minister on Inter and One Plus
One tended to be similar to that of UT1. However, their coverage of his
election campaign was less intensive and it tended to focus on politicians
like former president Leonid Kravchuk praising him and the results of polls
showing him gaining on Yushchenko.

Coverage of Yushchenko's campaign on all three channels was strongly
negative, although they did sometimes carry neutral reports about his
campaign activity, often in roundups alongside a number of minor candidates.
On 2 Aug, for example, all three channels carried brief, fairly neutral
items about Yushchenko and Moroz signing a pact to ensure fair elections.
On 3 August, all three channels briefly mentioned Yushchenko campaign
manager Oleksandr Zinchenko's press conference in Kiev at which he said he
was happy with the results of the first month of the campaign. However, they
all appeared to ignore Zinchenko's visit to Moscow on 4 August in their
evening bulletins.

The three channels tended to show very similar negative stories about
Yushchenko.

The scandal surrounding anti-Semitic remarks by former Our Ukraine MP
Oleh Tyahnybok continued to be reported but with diminished intensity. The
notorious video of his speech was observed several times on UT1 and One
Plus One.

In a story clearly aimed against Yushchenko, UT1 reported on 6 August that
leftist parties in Sumy Region had complained that unidentified US senators
and OSCE officials had illegally been advising local people about how to
vote. Inter carried a similar story on 7 August.

On 10 Aug, all three channels carried similar reports about Our Ukraine MP
Yevhen Chervonenko's alleged assault on a cameraman during a Yushchenko
rally in Zaporizhzhya Region and quoted local journalists saying that Our
Ukraine was putting pressure on media. Our Ukraine representatives were not
invited to comment on the allegations.

On 11 Aug, the day after Our Ukraine announced that a plain-clothes police
officer had been detained while carrying out clandestine surveillance during
a campaign event in Crimea, One Plus One reported the Crimean police's
statement that their man had been legitimately guarding the candidate and
that it was Our Ukraine representatives who had broken the law. It also
showed a brief excerpt from an Our Ukraine video showing Yushchenko and
Chervonenko inspecting the collection of false number plates found in the
man's car. The story appeared to be ignored by Inter and UT1.

After Our Ukraine announced on 13 August that it viewed a road incident in
Kherson Region the previous day as a possible attempt on Yushchenko's life,
Inter and One Plus One reported police statements that Our Ukraine was
responsible for the incident and that members of Yushchenko's entourage had
roughed up the truck driver involved. On 14 August, all three channels
showed interviews with the truck driver. None of them reported that Our
Ukraine representatives had said that they suspected an assassination
attempt, saying only that the hapless driver had not given way for
Yushchenko's vehicle.

ICTV, NOVVY KANAL

While early evening news bulletins on these channels often did not contain
any directly election-related news whatsoever, they did continue to give
limited but largely neutral coverage to most candidates, including both
Yanukovych and Yushchenko.

On 4 August, ICTV devoted a lengthy item to Oleksandr Zinchenko's
Moscow's press conference, reporting his statement that Yushchenko's rivals
were behind the Interfax news agency's last minute refusal to provide a
venue.

ICTV and Novyy Kanal covered the Crimean surveillance incident in their
early evening bulletins on 12 August, reporting both the police version and
Our Ukraine's demands for a criminal case to be launched.

Novyy Kanal also reported the road incident involving Yushchenko on 13
August, again reporting both sides of the story. The channels continued to
ignore the negative stories about Yushchenko shown on the administration-
linked channels.

5 KANAL

5 Kanal continued to give wide coverage to the election campaign with a
strong opposition slant. It carried lengthy reports on Yushchenko's campaign
tour of southern Ukraine. On 3 August, for example, its evening news and
comment programme showed a five-minute report about his visit to Odessa. It
also gave generous coverage to Moroz's campaign, devoting about four minutes
to Moroz's visit to Dnipropetrovsk on 12 August.

When controversial situations arose - such as the incidents involving
Yushchenko in Crimea and in Kherson Region, the channel was clearly inclined
to take the side of the opposition against the authorities.

However, it did provide some balance in its reporting. For example, it
carried pro-presidential pundit Mykhaylo Pohrebynskyy's sceptical comments
about Zinchenko's Moscow press conference. When the Committee of Voters
of Ukraine NGO presented its report on campaign violations on 9 August,
Yanukovych's proxy MP Stepan Havrysh was able to respond to the allegations.

As well as election news, the channel also devoted considerable attention to
other negative stories about the authorities such as the heavy-handed police
reaction to the Sumy student protests. However, representatives of the
authorities, such as Havrysh, were generally given the opportunity to
explain their position.

The channel continued to invite presidential candidates into the studio to
discuss their programmes on its evening news and comment programme. Among
those to appear in the last two weeks were Liberal Democrat Ihor Dushyn, Our
Ukraine MP Leonid Chernovetskyy, former ambassador to the UK Serhiy
Kommisarenko, Mykola Rohozhynskyy and Mykola Hrabar. (END)
=======================================================
ACTION UKRAINE REPORT-04, No.141: ARTICLE NUMBER TWO
The Action Ukraine Coalition, "Working to Secure Ukraine's Future"
=======================================================
2. LARGE SUMS OF UNDECLARED INCOME TO BE SPENT ON
UKRAINIAN PRESIDENTIAL ELECTION, NGO SAYS
Most of the huge campaign spending comes from shadow economy

Era, Kiev, Ukraine, in Ukrainian, 6 Aug 04
BBC Monitoring Service, UK, in English, Mon, Aug 16, 2004

KIEV - The 2004 presidential election campaign will cost approximately 1bn
dollars in total. A candidate counting on victory stands to spend at least
100m dollars, experts at the Freedom of Choice coalition of Ukrainian public
organizations have concluded.

The coalition's secretariat developed a programme entitled "Three steps
towards transparent funding of election campaigns in Ukraine", to monitor
the transparency and legality of the presidential election. The following
has been done as part of the programme: recorded monitoring of political
advertising, analysis of candidates' spending, monitoring use of government
resources, monitoring attempts to bribe voters or the media and professional
polling of presidential candidates.

The results of monitoring in the first month of the official election
campaign suggest certain characteristic features of the way the campaign is
financed, according to the Freedom of Choice coalition. These include use of
government resources, charity actions, commercial projects, powerful
negative advertising and meetings with voters. One can conclude that most of
this year's campaign spending comes from the shadow economy, that is outside
documented sources. (END) (ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No.141: ARTICLE NUMBER THREE
A leading news source for thousands around the world
=======================================================
3. UKRAINIAN PROSECUTORS OPEN FRAUD CASE
OVER MAYORAL VOTE IN MUKACHEVO

AP Worldstream, Kiev, Ukraine, Monday, August 16, 2004

KIEV - Prosecutors have opened a criminal case based on suspicions of
fraud involving records from a mayoral election that opposition leaders and
international organizations said set a disturbing precedent for Ukraine's
October presidential vote, officials said Monday.

The case was opened last week following a preliminary investigation into
accusations involving ballots and election officials' reports on the results
of the Apr. 18 mayoral vote in the western city of Mukachevo, said
Prosecutor General's Office spokesman Serhiy Rudenko.

Election officials, who have denied any violations, claimed their signatures
on suspect election records were forged, Rudenko said.

Election officials handed victory to the candidate from a party headed by an
aide to President Leonid Kuchma, while opposition and Western observers
said exit polls and vote counts indicated an opposition candidate had won.
Opposition lawmakers claimed vote-count records were altered to change the
result of the election. The candidate who was declared the winner has since
resigned, and new elections have not been held.

Opposition leaders said the vote showed what Kuchma's allies are prepared to
do to retain power in the Oct. 31 presidential election, which is expected
to pit Prime Minister Viktor Yanukovych against the leader of the opposition
Our Ukraine bloc, Viktor Yushchenko.

Critics of Kuchma say democracy has suffered during his 10 years in office,
and have accused his administration of using its power to manipulate
election results. (am/sbg) (END) (ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No.141: ARTICLE NUMBER FOUR
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=======================================================
4. BORYS TARASYUK: WE HAVE SERIOUS REASONS TO BE
CONCERNED OVER THE FATE OF UKRAINE
Will Ukraine finally rid itself of "kuchmizm" (Kuchma's regime) or
will it continue sinking into the abyss of crises?"

Press service of Narodniy Rukh Ukrainy
The People's Movement of Ukraine, Kyiv, Ukraine, Tues, Aug 17, 2004

KYIV - Commenting on the state of affairs in our country on the eve of
Ukraine's Independence Day, the head of Narodniy Rukh Ukrainy (the People's
Movement of Ukraine) Borys Tarasyuk said that, "much has been made in the
thirteen years since the restoration of Ukrainian independence for
developing the democratic institutions of the independent state and for
building up the economy. Many obstacles have been overcome on the way
but there have also been many challenges to Ukraine's national interests,
including its independence."

According to Borys Tarasyuk, we have serious reasons to be concerned over
the fate of our state. "The existing regime is squandering away our national
wealth "wholesale and by the piece," relinquishing the control over
strategic enterprises, which are our common national achievements, to the
neighboring country. It is its anti-national policies that have lead to the
distortion of the socio-economic development of the country and to the
tumbling of Ukraine's international authority to the lowest level," noted
the people's deputy.

According to him, "it is the policies of the current regime that have lead
to the situation that close to seven million of Ukrainians are forced to
search for work overseas. It is the policies of the sitting government - the
government of Kuchma and Yanukovych - that have lead to the impoverishment
of the Ukrainian people who are the ones that are hit the hardest by the
policies: the food crisis of 2003, the gasoline crisis of 2004." "The
headship of the Kuchma-Yanukovych government can be titled "Not a year
without a crises."

It all leads to serious socio-economic consequences. The miserly increase of
salaries and pensions is wiped out completely by the increase of the basic
food prices and utilities," noted Tarasyuk. He is convinced, therefore, that
this year of presidential elections is crucial for the future of the people
of Ukraine. "The upcoming presidential elections must provide an answer to
the question: "Will Ukraine finally rid itself of "kuchmizm" (Kuchma's
regime) or will it continue sinking into the abyss of crises?" thinks the
head of Narodniy Rukh. (END) (ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No. 141: ARTICLE NUMBER FIVE
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=======================================================
5. UKRAINE: KUCHMA LEAVES FOR RUSSIA FOR ANOTHER OF
HIS MANY MEETING WITH RUSSIAN PRESIDENT PUTIN

Ruslan Kyrylenko, Ukrainian News, Kyiv, Ukraine, Mon, Aug 16, 2004

KIEV - President Leonid Kuchma will pay a working visit to Sochi (Russia),
where he will meet with Russian President Vladimir Putin. The press service
of the President of Ukraine disclosed this to Ukrainian News.

According to information of the Russian president's press service, Putin
will leave for Sochi on Monday, August 16. It is planned that among items
featuring in the meeting of Kuchma and Putin will be bilateral cooperation,
foremost of all in the economic sphere, cooperation within the framework of
the Commonwealth of Independence States and the Common Economic
Area, and also the international political situation. As Ukrainian News
earlier reported, Kuchma is presently vacationing in the Crimea.

On Sunday, August 15, he discussed along with the head of the Administration
of the President of Ukraine, Viktor Medvedchuk and Dmitry Medvedev, the
head of the Russian Presidential Administration matters relating to his
meeting with Putin on August 18. The recent meeting between Kuchma and
Putin took place in the Crimea in late July. (END) (ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No.141: ARTICLE NUMBER SIX
Ukrainian Information Website: http://www.ArtUkraine.com
=======================================================
6. UKRAINIAN FORMER PRIME MINISTER KINAKH PROMISES
PROSPERITY IF ELECTED PRESIDENT

Holos Ukrayiny, Kiev, Ukraine, in Ukrainian 17 Aug 04; p 5
BBC Monitoring Service, UK, in English, Tuesday, Aug 17, 2004

KIEV - Anatoliy Kinakh, who was the Ukrainian prime minister in 2001-02, has
emphasized economic issues in his presidential election manifesto, published
in the Ukrainian parliamentary daily Holos Ukrayiny on 17 August. "Ukraine
will be a country with a developed competitive economy and high European
living standards" if he is elected president, Kinakh, who is chairman of the
Ukrainian Union of Industrialists and Entrepreneurs, said in the manifesto.
"I know how to revive the economy," he said.

Kinakh advocated a cautious and well-calculated approach to economic reform.
"I am confident of the need to stop social experiments on people. There will
be no reforms for the sake of reforms," Kinakh said. Instead, he suggested
building a system of "national protectionism or economic patriotism". Kinakh
pledged cheap credits and assistance to small and medium-sized businesses.
He promised to clamp down on official corruption and eradicate unfair
privatization methods. Kinakh named the aerospace industry, engine building,
biotechnology, metals and mining, agriculture and natural resorts among
priority industries.

Kinakh pledged to do away with unemployment, create 500,000 jobs annually,
increase the average wage by 150 per cent in two years, double industrial
production over five years and double GDP over six years.

He pledged to guarantee "a social peace between the various strata of
society, ethnic, national and religious groups". Kinakh did not mention
foreign policy priorities in his election manifesto. (END)(ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No.141: ARTICLE NUMBER SEVEN
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7. UKRAINE: STATE PROPERTY FUND HEAD IS IMPOVERISHING
THE STATE BUDGET THROUGH HIS UNPROFESSIONAL ACTIONS
ACCORDING TO MP PETRO POROSHENKO

Our Ukraine Website, Kyiv, Ukraine, August, 2004

KYIV - Opening the press conference on the violations of Ukrainian
legislation during the privatization in 2004, Petro Poroshenko noted that
the press conference, held together with the head of the Special
parliamentary control committee of the Verkhovna Rada on privatization
issues Valentyna Semenyuk, was "an answer to the press conference held by
the head of the State Property Fund (SPF) Mr. Chechetov the day before
yesterday."

Petro Poroshenko noted that, "Mykhailo Chechetov's commentaries have
proven his lack of professionalism, his biasness as well as the fact that he
does not fulfill and does not understand the tasks of this institution."

First of all, the head of the parliamentary Budget committee criticized the
"rotten potatoes" rhetoric, used by the head of the SPH to explain the
search for investors. Poroshenko stressed that privatization, as defined by
law, "is a search for an effective owner." Mr. Chechetov, on the contrary,
selling off the enterprises that are already working well, i.e. do not need
a different investor and a different owner, is leaving "rotten potatoes" in
the country while profitable businesses are being sold right and left."

According to Poroshenko, Mr. Chechetov is impoverishing the state budget
by billions of hryvnyas through such unprofessional actions. "The sale of
"Kryvorizhstal" alone will cost the state budget a billion hryvnyas. Such
actions of the SPF is not just ineffective, it is criminal," thinks the head
of the Budget committee.

"We are not calling to stop the privatization," stressed the head of the
Budget committee, "we are simply in favor of searching for effective owners
that will pay the real price for their acquisitions instead of trifles that
are set by the Chechetov outfit." According to information presented by
Poroshenko, the loss on the sale of "Kryvorizhstal" is 4 billion hryvnyas
and on the sale of the Kryvyi-Rih iron ore industrial plant - close to 1
billion hryvnyas. (END)(ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No.141: ARTICLE NUMBER EIGHT
Ukrainian Information Website: http://www.ArtUkraine.com
=======================================================
8. UKRAINIAN PRIVATIZATION CHIEF SAYS THERE WILL
BE NO RE-NATIONALIZATION AFTER ELECTION

Era, Kiev, Ukraine, in Ukrainian, 14 Aug 04
BBC Monitoring Service, UK, in English, Sat, Aug 14, 2004

KIEV - [Presenter] The head of the State Property Fund, Mykhaylo
Chechetov, has said that there will not be any renationalization of
strategic enterprises after the presidential election.

[Chechetov, in Russian] We understand full well that there will be no
renationalization. Nobody will let that happen. Intelligent people
understand that even the word renationalization is damaging to Ukraine.
God forbid that anybody should press the button on the renationalization
conveyor belt. Then we'll be carried back to the early 1990s. But in the
case of certain enterprises where investment commitments were not met,
where something was illegal, then yes - that's possible. Look at what
happened with UMC [Ukrainian Mobile Communications - see UNIAN
news agency, Kiev, in Ukrainian 1340 gmt 12 Aug 04].

The Prosecutor General's Office saw a mote in the eye. It reacted
instantaneously. A court considered the case right way. Everything was in
order. There was neither a mote nor a beam. There was no harm to the
state. In any case, there won't be any renationalization, since those forces
that want a revolution will not come to power. And investors know it. The
situation will be stable and predictable.

[Ukraine's opposition has said that state enterprises are being sold of in a
hurry to insiders ahead of the presidential election in October and has
called for a moratorium on privatization until after the election.
Opposition frontrunner Viktor Yushchenko has said that if he becomes
president, he will challenge the controversial privatization of the
Kryvorizhstal steelworks in court - see Ukrayinska Pravda web site, Kiev,
in Ukrainian 5 Aug 04.] (END) (ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No.141: ARTICLE NUMBER NINE
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9. UKRAINIAN PRIVATIZATION CHIEF SAYS STATE PROPERTY
AUCTIONS IMPARTIAL AND TRANSPARENT

TV 5 Kanal, Kiev, in Ukrainian, 11 Aug 04
BBC Monitoring Service, UK, Wednesday, Aug 11, 2004

KYIV - The Ukrainian privatization chief, State Property Fund head Mykhaylo
Chechetov, has said he favours no financial group during auctions. In a live
TV interview, Chechetov explained the current surge in privatization income
by careful preparations last year and a big safety margin he planned to
cover the risks of the election year. He also assured the viewers that the
privatization was completely transparent because he held news conferences
every week. The following is an excerpt from the report by Ukrainian
television TV 5 Kanal on 11 August; subheadings were inserted editorially:

[Presenter] The State Property Fund has announced a privatization boom in
Ukraine. This year it is going to sell state companies worth 500 per cent
more than in previous years. It seems it was the news only for the State
Property Fund because all experts have long noticed a rapid sale of state
property in the recent months. The authorities explain it with an investment
boom. The opposition says the hurry is linked with the forthcoming
[presidential] election. We will discus this with the chief figure in
Ukrainian privatization, State Property Fund head Mykhaylo Chechetov.
Good evening.
[Chechetov] Good evening.
PRIVATIZATION BOOM CAUSED BY STABILITY
[Presenter] The main question is why there is such a hurry.
[Chechetov] There is no hurry. The foundation of this year's success was
created last year, when we prepared for the privatization of such giants as
the Odessa Port Plant, the Kryvorizhstal [metals] plant, the Dzerzhynskyy
[metals] plant and so on. We prepared several companies, I call them
privatization Everests, worth billions. The sale of two or three of them
could decide the fate of the state budget. We made a big safety margin
because we understood perfectly well that the year would be a difficult one
with big political risks, that parliament could proceed from the political
situation and cancel the privatization of some companies by putting them on
the list of strategic companies.
[Passage omitted: Economic growth attracted many investors.]
[Chechetov] You know, I also thought like you do. I thought there would
be a political risk before the election. It turned out there are none.
First, there is a fantastic growth rate. IMF representatives visited Ukraine
recently. I met them. They said we should advise them rather then they
advise us. They were simply astonished. This is fantastic, the best growth
rate. Second, there is political stability. I've already said this at a news
conference today but I'd like to repeat. The economic growth rate is so high
that politics attracts less attention. The situation is stable and the train
called Ukraine - in my view - will pass the station called the presidential
election without noticing it and will accelerate further. That is why
Western investors are knocking and saying that they are sure of stability,
that there will be no revolution in Ukraine, and that the country will
accelerate its development. They say do not brake, sell now, we will come.
[Passage omitted: Chechetov likes being criticized by foreigners - this
means he works in Ukraine's interest.][Presenter] Am I right to say that
when the IMF talks about the lack of transparency during privatization you
see an evil plot behind this?
[Chechetov] This is absolutely not true. I think that not a single ministry
of department works with more transparency than the [State Property] Fund.
I hold news conferences every week.
[Passage omitted: Chechetov praises the government and parliament for
cooperation.]
BIG SHARKS COMPETE FOR LARGE PIECES
[Presenter] You probably heard my last question many times. Maybe you have
a new answer to it. Why the pro-government business groups are so lucky in
privatization auctions, I mean primarily the Donetsk group [allegedly linked
to Ukrainian Prime Minister Viktor Yanukovych].
[Chechetov] The thing is that there are [few big players] currently on the
privatization market, unfortunately. But there is progress in this area. Two
years ago I said we did not have grand masters. People were playing at the
first-grade or master level. Currently, there are five financial-industrial
groups that play at the grand-master level. There are about five of them. I
think there will be about 10 by the end of this year.
These are corporation that work successfully on our market, compete
successfully on world markets and win there. I mean their participation in
privatization abroad. The strongest wins. You are welcome. You mentioned the
Donetsk group. The ferrous metals plant was privatized by the Interpipe
company [belonging to President Kuchma's son-in-law Viktor Pinchuk]. Are
they the Donetsk group? No. The Pivnichnyy ore enrichment plant belongs to
Ukrsibbank from Kharkiv. Are they the Donetsk group? No.
[Presenter] We can mention Kryvorizhstal metals plant.
[Chechetov] If you take Ukrrudprom ore mines, there is the Pryvat group
there. Are they the Donetsk group? No. Even if I wanted [changes tack] -
When I was elected head of the State Property Fund I was asked what would
be after that, under the new head of the fund [Chechetov]. I said I could
tell them what would not be there. I will never let - using billiard
terminology - all the balls fall into one pocket. Even if I wanted to play
into somebody's hands and let the balls be scored only into their
privatization pocket, the gross masters would not allow me to do this. they
would not allow the strengthening of Interpipe alone, infringing upon the
interests of SCM [Donetsk holding company System Capital Management,
belongs to Rinat Akhmetov], or the strengthening of SCM, infringing upon the
interests of Ukrsibbank. No. They follow each other in this area and
compete. [Passage omitted: Chechetov talks on various levels of business.]
=======================================================
ACTION UKRAINE REPORT-04, No. 141 ARTICLE NUMBER TEN
The Action Ukraine Coalition, "Working to Secure Ukraine's Future"
=======================================================
10. UKRAINE'S INTERIOR MINISTRY SHADOWING
PRESIDENTIAL CANDIDATES
Ukrainian agents caught spying on Viktor Yushchenko

By Taras Kuzio, Eurasia Daily Monitor, Volume 1, Issue 73
The Jamestown Foundation, Washington, D. C., Friday, 13 August 2004

A new scandal is unfolding in Ukraine that is likely to add to the growing
realization that this year's Ukrainian presidential elections cannot be
described as free and fair. On August 3 the International Helsinki
Federation for Human Rights (www.ihf-hr.org) appealed to Ukrainian
authorities "to observe international standards for free and fair elections,
as reliable evidence suggests that governmental officials in several sectors
are illegally abusing public institutions to manipulate the outcome of the
31 October 2004 presidential election."

The latest scandal has provided proof about how Interior Ministry (MVS)
personnel have illegally placed leading opposition candidate Viktor
Yushchenko under surveillance (Ukrayinska pravda, August 10). Confiscated
MVS video footage also shows that other candidates are also under
surveillance, as one tape is of opposition Progressive Socialist leader
Natalia Vitrenko.

On August 10, Yushchenko undertook his "Let's Clean Ukraine of Dirt"
campaign tour to the Crimea. His official bodyguards from the Directorate of
State Protection (part of the KGB during the Soviet era was and the service
from which Mykola Melnychenko bugged President Leonid Kuchma's office
in 1999-2000) noticed individuals tailing Yushchenko. Members of the
Directorate arrested three unidentified individuals.

Yushchenko's bodyguards and Our Ukraine aides found the car used by the
unidentified individuals. In it they found espionage equipment, 12
automobile license plates, radio communications, and both still and video
cameras. The people following Yushchenko had in their possession special
documents allowing them to travel anywhere in the Crimea without being
asked for identity documents.

The video camera contained footage of Yushchenko's entire Crimean visit,
including his private visit to Sevastopol where he met his family. The car
held numerous documents that outlined details of Yushchenko's itinerary. His

Crimean schedule, the people he had visited, and who had met him, details of
all of his private visits, and the political aims of his election campaign
in the Crimea were all recorded.

Yushchenko and his aides immediately called on the MVS to explain what had
taken place. They informed the MVS that their official bodyguards had never
asked for additional security measures.

The MVS was slow to respond. Eventually, the Crimean department of the
MVS claimed that the three arrested officers were in fact protecting him
from "provocateurs" (Ukrayinska pravda, August 11). The MVS statement
claimed that the agency provided such protection to all presidential
candidates, and it even cited the relevant legislation.

Not surprisingly, opposition candidates did not believe the MVS explanation.
This incident followed a pattern of increasing MVS involvement in KGB-style
activities against the opposition. Such activities first became public in
November 2000 when opposition journalist Heorhiy Gongadze was murdered
after he had reported surveillance by the MVS in July 2000.

Our Ukraine parliamentary deputy Mykola Tomenko directly accused Prime
Minister and presidential candidate Viktor Yanukovych of ordering the
surveillance. Our Ukraine also showed journalists the video footage of
Yushchenko that had been confiscated from the MVS (Ukrayinska pravda,
August 12). On the tape the journalists could hear the voices of the MVS
officers who were discussing what to video, rather than whom to guard.

Tomenko argued that the order given to the MVS to follow opposition
candidates was illegal. He linked the surveillance to the more general
problem of wide-scale abuse of state-administrative resources by
presidential candidate Yanukovych. "Today, the entire state machine works
for one candidate," Tomenko complained (Ukrayinska pravda, August 12).

Yushchenko led the attack on the surveillance operation by directly blaming
the head of the government: Yanukovych. "This is the work of this
government--the Yanukovych government that has direct jurisdiction over the
MVS and Interior Minister Mykola Bilokin" (Ukrayinska pravda, August 12).
Yushchenko advised the MVS that he had no need for their "bodyguard"
services, as he was already protected by the Directorate of State Protection
as well as a private, officially registered security firm.

Yushchenko accused the MVS of not only following him but also of interfering
in his private life by filming him with his wife and kids. He explained that
he had ruled out any request to the MVS for protection, as the MVS seems to
be working on behalf of Yanukovych's candidacy. "I do not believe these
people and I cannot entrust my life and those of my family to them,"
Yushchenko declared (Ukrayinska pravda, August 12).

This latest episode in the election season makes a mockery of President
Kuchma's "guarantee" to hold free and fair elections. As London's The
Independent newspaper pointed out (August 12), this latest embarrassment
comes from "a regime that blends sinister authoritarianism with banana
republic-style bungling." (END)(ARTUIS)
=======================================================
ACTION UKRAINE REPORT-04, No. 141 ARTICLE NUMBER ELEVEN
=======================================================
11. UKRAINE: KUCHMA CONFERS YAROSLAV THE WISE ORDER
ON ARCHBISHOP OF ATHENS IN ALL OF GREECE CHRISTODOULOS

Dmytro Symonov, Ukrainian News, Kyiv, Ukraine, Sun, August 15, 2004

KYIV - President Leonid Kuchma has conferred the Order of Prince Yaroslav
the Wise, 5th degree, on His Beatitude the Archbishop of Athens and all of
Greece, Christodoulos Paraskevaides. Ukrainian News learned this from the
presidential press service.

The press service reported the Archbishop of Athens and all of Greece was
awarded the order for his remarkable contribution to the development of
cultural and spiritual ties between Ukraine and Greece. (END) (ARTUIS)
========================================================
ACTION UKRAINE REPORT-04, No. 141 ARTICLE NUMBER TWELVE
Ukrainian Information Website: http://www.ArtUkraine.com
========================================================
12. JAMAICA: NEW POST FOR KENNY?
Benjamin may be Ukraine's first Honorary Consul General to Jamaica

Chester Francis-Jackson, Contributor
Jamaica Gleaner, Kingston, Jamaica, Saturday, August 14, 2004

KINGSTON - YOU KNOW, one would have thought, that in the
heights of the 70s the Jamaican State, was at the heights of its
international popularity, coming into its own within the ranks of
organisations as the non-aligned movement; Socialist International, etc.,
as well as based on the visible and sometimes advocacy foreign policy of
the government of the time!

It seems however, that with the demise of the old political order, and the
tensions and political prodigies they created in defining social, political
and economic issues, the world has been busy reordering itself away from
the political divide that was the status quo of a decade or so, ago to
reflect individual national and bilateral interest, as against the polarised
hegemonic politics of yesteryear.

CEMENT TIES
To this end, there have been a number of States, that have in more recent
times, been moving to further cement their ties and relationships with other
independent nation states based on cultural, bilateral and economic ties -
all in the interest of further expanding and or exploring bilateral
opportunities, in this new era of globalisation! Now, along with the
acceptance that has come with the realisation by independent nation states
that they need to increase their presence and or representation on the
ground, if they are to fully maximise and or explore the potentialities
these states represent, is the realisation that indeed, while the
establishment of a diplomatic mission would be ideal, in some circumstances,
this is not initially practical.

And so, enter the Honorary Consuls and or Honorary Consuls General!

My Dears, as nations states seek an ever expanding and visible role in the
international community, the role of the Honorary Consul/Consul General,
has been taking on more of an important role in the area of international
diplomacy, as this quasi diplomatic office and or officer takes on the role
of the non-resident diplomat of the state, in its bid to better service the
needs of its own nationals; representation; and or the facilitation of
bilateral co-operation between the host state and the guest state.

APPOINTING CONSULS
And so it is, that in recent times, more and more nations have been
appointing Honorary Consuls/Consuls General to Kingston.

One such State presently in the process of appointing an Honorary Consul
General to Jamaica is the former Communist Republic of the USSR, the
Ukraine.

At present, the Ukraine, now an independent State, has as its'
representative to Jamaica and the Caribbean, a UN based Ambassador
Extraordinary and Plenipotentiary, in the personage of Ambassador Valeriy
Kuchinsky, who is visiting the island.

Now, Security conglomateur and businessman Kenny Benjamin, is no
stranger along the hallowed halls of power and has long been a
non-accredited diplomat in his private capacity as host par-excellence,
philanthropist and bon vivant. And so it came as really no surprise, when it
emerged recently, that the founding chairman of the Guardsman Empire is
indeed, the leading candidate to become the Ukraine's first Honorary
Consul General, to Jamaica.

Now, last week saw Ambassador Kuchinsky, on an official visit to Jamaica
as part of his itinerary including audiences with leading members of the
Government and a courtesy call on his country's potential Consul General.

To officially welcome him to Jamaica and the region at large, the revered
Kenny Benjamin, hosted Ambassador Kuchinsky, and Second Secretary
Volodymyr Pekarchuk, to a swelleganza of a cocktail reception at his posh
Stony Hill estate residence, located in the very exclusive Montgomery
neighbourhood of the generally upscale residential community!

Dears, the reception was a social and diplomatic humdinger and then some!

Hosted in the south-east gardens of the fabulously done-up residence, with
the Entertainment-Cathedral (a fabulous entertainment area perched way up
an on stilts, towering into the sky and with its high stained-glass windows
making for a formidable conversation piece), the outing saw a gathering of
the moneyed, the celebrated along with members of the diplomatic and
consular corps out and sharing felicitations with the visiting dignitaries,
in an atmosphere of complete relaxation and merriment!

Indeed, it was quite a beaut of a do, as guests mingled easily, the visiting
Ambassador and his deputy a-meeting and a-greeting new found
acquaintances and old colleagues as they worked the gathering, while the
Carlton James Mento band (usually to be found at the Poolside of the Hilton
Kingston), entertained in flawless mode from their repertoire of Jamaican
folk songs and general favourites!

A MUSICAL BUFFET
And doves, they were mmm-good and then some! Their musical presentations
taking on an international flavour when British Embassy Official Colin
Bowskill joined the band on Bongo drums; and he was later joined on Maracas
by Sergey Tarasov, Secretary of the Embassy of the Russian Federation- and
all played up a musical buffet, much to the delight of guests!

It all made for a wonderfully delightful and smashingly entertaining
affaire, with libations flowing like from unto a gushing reservoir and a
fare that boasted Indian, Chinese and Jamaican dishes, that had guests
mmm-ing and aaah-ing in its delicious fore and aftertaste.

Indeed, it was a night of muted elegance and refreshing splendour! Among
those spotted, included: Junior Minister Tourism portfolio Dr. Wykeham
McNeil and his fabulously-lovely fiancée Sheila Benjamin-Fernandez;
Opposition MP and Finance Spokesman Audley Shaw; Joe Matalon and his
fabulous companion Bernadette McKinley Morin; Head of the EU Delegation
Ambassador Gerd Jarchow and his companion Mara Mandara; Canadian High
Commissioner Claudio Valle and his wife, the lovely Louise Valle; Indian
High Commissioner Inder Choper and his elegant wife Nanita Choper; Secretary
General of the International Seabed Authority Ambassador Satya Nandan; Cuban
Ambassador Jose Piedra Rencurell and his charming wife Mercedes Piedra;
Chilean Ambassador Alfonso Silva and his beautiful wife Mrs. Ada Silva;
Argentinean Ambassador Gonzalo Fernandez Medrano and wife Mrs. Ines
Medrano; Colombian Ambassador Dr. Ken Francis; Venezuelan Ambassador
and Mrs. Luis Martinez; Honduran Ambassador Carlos Rivera Matute and his
charming wife Rebecca Matute; Deputy Chief of Mission Embassy of Spain Jaume
Segura i Socias; Capt. Michael Lyn and his wife, Social Empress and Honorary
Consul General of the Kingdom of Thailand, Thalia Lyn; Mrs. Valerie Juggan-
Brown; Rae Barrett; the charming Carol Charlton; Capt. Rupert Bent and wife
Cindy Breakspeare; Harold Brady; Winston Watson; Howard Mitchell and his
lovely wife Linda; Rajiv Bakshi and companion Dorothea Gordon-Smith; R.
Christene King; Jim and Marina Gill; Keith Collister and his oh-so fab
companion Carol Pessoa; David Delgado and companion Elena Garwood; the
charming Nadine Thomas; Iris Molina; the lovely Isabel Mareno; and the
lovely Aloima Suarez; plus a number of Ukrainian nationals, resident here.

'Twas however, another beautiful occasion and then some! (END)(ARTUIS)
----------------------------------------------------------------------------
PHOTO: Kenny Benjamin, chairman of the Guardsman Group, sips a beer while
conversing with Ambassador Valeriy Kuchinsky, permanent representative of
Ukraine to the United Nations during a reception hosted in Stony Hill, St.
Andrew, by Kenny Benjamin in honour of the visit by Mr. Kuchinsky. -
Winston Sill photo
http://www.jamaica-gleaner.com/gleaner/20040815/social/social1.html
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"POWER TENDS TO CORRUPT,
ABSOLUTE POWER CORRUPTS ABSOLUTELY"
An observation that a person's sense of morality lessens as his or
her power increases. The statement was made by Lord Acton, British
historian of the late nineteenth and early twentieth centuries.
True then, true today, true always.
========================================================
THE ACTION UKRAINE COALITION
"Working to Secure Ukraine's Future"
========================================================