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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"

"THE ACTION UKRAINE REPORT" Year 04, Number 181
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, MONDAY, October 4, 2004

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

1.WHAT HAPPENS AFTER THE UKRAINIAN PRESIDENTIAL ELECTION
What are the options for western governments?
COMMENTARY AND ANALYSIS by:
Paul D'Anieri, Associate Dean for the Humanities and Associate
Professor of Political Science, The University of Kansas, Lawrence, KS
Published by The Action Ukraine Report, Washington, D.C., Mon, Oct 4, 2004

2. REUTERS NEWS STORY ABOUT VIENNA HOSPITAL AND VIKTOR
YUSHCHENKO BASED ON A FALSE PRESS RELEASE SENT TO
REUTERS FROM A FAX MACHINE IN GERMANY
Press Release from the Syla Narodu Coalition, "Power of the People"
Press Service of Viktor Yushchenko's Central Headquarters
Kyiv, Ukraine, Monday, October 4, 2004

3. INTERVIEW WITH KATERYNA YUSHCHENKO
“I Have Always Feared For Viktor, But I Never Even Imagined
that his Enemies Would Carry it this Far”
Interview with Kateryna Yushchenko by Ilona Bohush
Zerkalo Nedeli On The WEB, Mirror-Weekly
International Social Political Weekly, Kyiv, Ukraine, Sat, 2-8 Oct 2004

4. "KIEV PROTESTS CANADA'S COMMENTS"
Envoy fuels diplomatic row with talk of 'unfair' election coverage
By Mark MacKinnon in Moscow, Globe and Mail
Toronto, Ontario, Canada, Monday, October 4, 2004 - Page A11

5. UKRAINIAN PRESIDENTIAL CAMPAIGN QUOTES
27 Sept-3 Oct 04, 2004
Quotes package from BBC Monitoring, in English 3 Oct 04
BBC Monitoring Service, United Kingdom; Mon, Oct 04, 2004

6. 50,000 UKRAINIANS SAID ABLE TO VOTE IN MOLDOVA'S
REBEL DNIESTER REGION, BALLOT BOXES BEING SENT OUT
Source: TV 5 Kanal, Kiev, in Ukrainian, 1 Oct 04
Provider: BBC Monitoring Service, UK, in English, Fri, Oct 1, 2004

7. UKRAINIAN INFLUENTIAL TYCOON RINAT AKHMETOV
PROFILE: by BBC Monitoring Research Service, UK, Fri, Oct 1, 2004

8. IRAQ THANKS UKRAINE AND URGES UKRAINE NOT TO
REDUCE ITS PEACEKEEPING CONTINGENT
Source: Era, Kiev, in Ukrainian, Mon, 4 Oct 04
BBC Monitoring Service, UK, in English, Mon, Oct 04, 2004

9. UKRAINIAN DIASPORA EXERCISES ITS POLITICAL MUSCLE
Today there are about one million Canadians of Ukrainian heritage
By Estanislao Oziewicz, Globe and Mail
Toronto, Ontario, Canada, Monday, October 4, 2004 - Page A11

10. ALEXY II SAYS PROGRESS IN RELATIONS WITH VATICAN
DEPENDS ON CATHOLICS -- ALEXY II
ITAR-TASS, Moscow, Russia, Sun, October 3, 2004

11. LETTER TO ALL CITIZENS OF THE FREE WORLD
The moment of truth for the Ukrainian Nation
Civic Campaign PORA, www.pora.org.ua/en
Kyiv, Ukraine, Monday, October 4, 2004

12. KHARKIV OPENS TALKS WITH 7 INTERNATIONAL BANKS
ON PLACING MUNICIPAL LOAN EUROBONDS FOR USD 50-70
Ukrainian News Agency, Kyiv, Ukraine, Wed, September 29, 2004

13. POLISH WOODEN FLOOR MAKER BARLINEK TO BUILD
UKRAINE'S LARGEST SAWMILL
Polish News Bulletin, Warsaw, Poland, Mon, Oct 04, 2004
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER ONE
========================================================
1.WHAT HAPPENS AFTER THE UKRAINIAN PRESIDENTIAL ELECTION
What are the options for western governments?

COMMENTARY AND ANALYSIS by:
Paul D'Anieri, Associate Dean for the Humanities and Associate
Professor of Political Science, The University of Kansas, Lawrence, KS
The Action Ukraine Report, Washington, D.C., Monday, Oct 4, 2004

As Ukraine's elections approach, comment on the elections in the western
press is approaching a crescendo. Prominent policy makers, scholars,
and "eminent persons" have all weighed in on the elections. Two things are
surprising about the outpouring of concern: First is the degree of
consensus. Even in the United States, where politics seems more partisan and
bitter than ever, there is not much debate on the situation in Ukraine. The
second surprise is that very little has been said about what might happen
after the elections, and what the options are for western governments.

These two surprises are linked. It is easy to agree that
Ukraine's election is a watershed, and that one side clearly intends to
subvert (and has already subverted) the considerable progress made to
date in liberalizing Ukrainian politics. No other evaluation is tenable at
this point. However, the chorus of statements on the need for free and fair
elections in Ukraine is bizarrely mistimed, since it is now far too late to
hold free and fair elections, even if the Ukrainian authorities were to
suddenly decide that they wanted them. Thus, the consensus we see is due
in large part to the irrelevance of most of what is being said. It is no
longer imaginable that the election will be regarded as free and fair.

However, deciding what to do about it is not yet irrelevant, and is a much
more difficult question. Yet there has been much less attention to this
vexing question. The relative silence is also, perhaps, easily accounted
for: there are no obviously good strategies. While there have been a few
proposals on this matter, generally recommending isolating a Yanukovych
regime and preventing its members from operating financially in the west, it
is shocking how little real debate there has been on how the West should
react.

The European Union, by all indications, will react in general with silent
relief, content that its neglect of Ukraine over the past decade will at
last seem justified, and that Ukraine's urge to be taken seriously as a
candidate for membership will lose whatever tiny bit of credibility it had
left. Only Poland seems to have thought seriously about the impact of
Ukraine decisively moving off the path to Europe, and Poland has been
unsuccessful in raising serious concern in Brussels.

The United States, throughout the late 1990s and the first part of this
decade, has been much more tolerant of Kuchma's concentration of power,
seeing it initially as a better alternative than the accrual of more power
by a parliament that had a leftist plurality from 1994-2002. Only when
Kuchma was caught on tape approving the sale of anti-aircraft radars to
Iraq did the US turn on Kuchma, and he was able to achieve partial
forgiveness by making Ukraine part of the "coalition of the willing" in
Iraq.

What are the serious options if Yanukovych is declared the winner, and what
are the dangers involved? The most widely supported option is what we might
call the "Belarus strategy:" isolate the regime, both in order to weaken it
and to demonstrate the west's unwillingness to accept such assaults on the
democratic process. However, there is no real evidence that this strategy
has produced tangible benefits in the case of Belarus. Indeed, as in the
case of Cuba, isolation of Belarus probably plays into the hands of the
authoritarian leadership there. It also plays into the hands of Russia.

The alternative, of course, is what might be termed the "Russia strategy:"
ignore the strengthening of authoritarianism, and try to make the best of a
bad situation. In this view, the west cannot make Russia any more
democratic, but it can engage an authoritarian Russia in ways that might
yield other benefits, such as help on terrorism or nuclear proliferation, or
access to oil. In a broader perspective, this could also be called the
"Pakistan strategy," the "Saudi Arabia" strategy, and so on.

Is there a third alternative? Perhaps not, but we should at least ask the
question: is it possible that, having seized the presidency, Yanukovych
will seek to gain some domestic and international legitimacy by striking a
moderate course? Is it possible that, seeing the economic threat from
Russia to the Donetsk clan that backs him, Yanukovych will seek to
seriously engage the west, in order to balance Russian power? Realistically,
we can see no such signs of either possibility, but the question remains
whether we should, after the election, try to find out.

The problem with such a strategy is that trying to engage a Yanukovych
regime would seem irresolute and cowardly, and would reward the
conscious annihilation of the most pluralist political system in the CIS.
Clearly, the principled policy would be isolation and sanctions.

However, we should beware of the implications of such a strategy in the
context of our policy toward Russia. To engage Russia while isolating
Ukraine will lead to the worst of both worlds. Russia will have room for
maneuver, and Ukraine will not. This will not make Russia any more
democratic, and will indeed feed Russia's imperial impulse. Moreover, it
will erode the chances that Ukraine will somehow turn things around.

So what should we do? If we decide to isolate Ukraine, we should change
our policy toward Russia. If, for pragmatic reasons, we are going to engage
an authoritarian regime in Russia, we should do the same with Ukraine.
Isolating Ukraine will undoubtedly be the principled thing to do, but
principles applied inconsistently cannot really be called principles. And
principles applied without realism can lead to very bad results in
international politics. -30-
----------------------------------------------------------------------------
Paul D'Anieri is the Associate Dean for the Humanities and
Associate Professor of Political Science, The University of Kansas,
1450 Jayhawk Blvd., 200 Strong Hall, Lawrence, KS 66045.
----------------------------------------------------------------------------
FOOTNOTE: We are pleased that the University of Kansas has
some programs regarding Ukraine and professors who have a keen
interest in what is going on in Ukraine. Dr. Anieri has appeared on
many programs this year giving his outstanding analysis of the presidential
election in Ukraine. Your editor grew up just 20 miles south of Kansas
University, in Ottawa, Kansas, and has a graduate degree from KU.
=======================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER TWO
=======================================================
2. REUTERS NEWS STORY ABOUT VIENNA HOSPITAL AND VIKTOR
YUSHCHENKO BASED ON A FALSE PRESS RELEASE SENT TO
REUTERS FROM A FAX MACHINE IN GERMANY

Press Release from the Syla Narodu Coalition, "Power of the People"
Press Service of Viktor Yushchenko's Central Headquarters
Kyiv, Ukraine, Monday, October 4, 2004

KYIV - A report issued by the Reuters news agency on Tuesday, September
28, based on what was assumed to be a statement issued by Vienna's
Rudolfinerhaus Hospital, claimed that "the information disseminated about an
alleged poisoning (of Ukrainian presidential candidate Victor Yushchenko) is
absolutely unfounded in medical terms."

This statement generated significant speculation in the Ukrainian and
international media concerning Victor Yushchenko's state of health and the
reasons for his sudden illness.

In response, the President of the Rudolfinerhaus Hospital, Professor Dr.
Michael Zimpfer has issued an official statement saying the press release
sent to Reuters on September 28 was not prepared by the hospital. For
the record, Dr. Zimpfer stated that he never saw, nor did he sign, the
statement sent to Reuters.

The false press release [reported to be from the Vienna hospital] was sent
to the Reuters news agency from a fax machine in Germany.

According to the Reuters news agency, the false press release was sent by
an individual named Markus Reugamer, with a German telephone number
of 49 163 77 19 799. It is important to note that this individual is not
affiliated with the Rudolfinerhaus Hospital: he does not work at the
hospital
nor does he have any agreements with the hospital to speak on its behalf.

Accordingly, on October 3, 2004 the administration of the Rudolfinerhaus
Hospital issued an official statement signed by Prof. Dr. Michael Zimpfer,
President of the Rudolfinerhaus Hospital and Prof. Dr. Lothar Wicke,
Managing Director and Chief Doctor of the hospital. The following is an
unofficial translation of the October 3, 2004 statement (the original
German language statement is attached):

"Letterhead of Rudolfinerhaus Hospital"
A-1190 Vienna, Billrothstrasse, 78
Vienna, October 3, 2004

Information for the press:
This press release concerns the patient Victor Yushchenko of Kyiv, Ukraine.

We hereby are I personally making the following statement concerning the
medical treatment of Mr. Yushchenko, former prime minister of Ukraine
and candidate in the presidential elections to be held on October 31, 2004.

Mr. Yushchenko underwent diagnosis and treatment in the Rudolfinerhaus
Hospital from September 10-18, 2004, due to signs of an acute illness with
symptoms that involved multiple organs and included a neuro-dermal
component.

As a result of medical tests from September 30, 2004, the patient was
readmitted into the Rudolfinerhaus Hospital for further medical treatment
and observation.

Considering the development of the illness and the issue of whether the
cause of the illness was poisoning, I would like to inform and make the
following clear as a response and correction to the press release of
September 28, 2004, which I did not sign nor authorize and which may
considered as an a priori rejection of poisoning.

The exogenous cause of poisoning is still being considered. The
possibility of poisoning, by whatever means, cannot, at this stage, be
confirmed or dismissed. Thus, the press release of September 28, 2004,
according to which the prospect of poisoning may be dismissed, is, in
relation to this case, untruthful and hereby corrected by this statement.

The primary physicians responsible for treating Mr. Yushchenko, with
the help of the medical team, are only Prof. Dr. Korpan and I (Dr. M.
Zimpfer). In keeping with the physician's obligation to maintain
confidence, any declaration concerning the state of a patient's health,
we, as physicians treating the patient, can only make with the patient's
consent. Signed,
University Professor Dr. M. Zimpfer, MBA
President, 'Rudolfiner-Verein-Rotes Kreuz'
'Rudolfinerhaus' Hospital

University Professor Dr. Lothar Wicke
Managing Director and Chief Doctor
'Rudolfinerhaus' Hospital"

Taking all this into account, the campaign headquarters of Victor
Yushchenko are requesting that the Reuters news agency, and all media
outlets who reported the misleading information, circulate the official
statement issued by the Rudolfinerhaus Hospital on October 3, 2004. The
campaign headquarters of Mr. Yushchenko consider the false press release
from September 28, 2004 to be part of a black political PR campaign
against the presidential candidate.

The campaign headquarters consider this whole affair to be a deliberate
provocation intended to misinform the Ukrainian people and the international
community by drawing attention away from the investigation into the
attempted murder of the presidential candidate.

As we learned, the disinformation was circulated by the "Trimedia" PR
Agency. We are convinced that the origins of this provocation can be
traced to Kyiv, Ukraine, where certain pro-regime political forces have,
in the past, hired Western PR firms to whitewash the current regime's
image. [English translation by Steve Bandera in Kyiv. English translation
by the Yushchenko press service can be found at www.rasom.org.ua.]
---------------------------------------------------------------------------
FOOTNOTE: The website address for the "Trimedia" public relations
agency, reported to be involved in the fraudulent document sent to Reuters,
is: http://www.trimedia.at/. We have also been informed by a reliable
source that the story heard on the street in Kyiv is that the Kyiv office
of the EuroRSCG public relations firm has been reported to be involved
in this deal someway. Some say the Kyiv office of EuroRSCG originated
the bogus document and sent it to TriMedia who then sent it to Reuters.
If you have additional information please send it to us. (EDITOR)
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER THREE
========================================================
3. INTERVIEW WITH KATERYNA YUSHCHENKO
“I Have Always Feared For Viktor, But I Never Even Imagined
that his Enemies Would Carry it this Far”

Interview with Kateryna Yushchenko by Ilona Bohush
Zerkalo Nedeli On The WEB, Mirror-Weekly
International Social Political Weekly, Kyiv, Ukraine, Sat, 2-8 Oct 2004

Kateryna Yushchenko, Victor Yushchenko’s wife, came to the interview with
their six-month old son Taras. Their older children, Sofiya and Hrystyna,
were at kindergarten at the time. After what happened to her husband,
Kateryna is worried about their children. For the last several years, the
Yushchenko family has been living in an uneasy atmosphere, fraught with
danger.

Nevertheless, Victor Yushchenko’s illness was a real shock to his family.
Kateryna was near him throughout his hard time in the Austrian hospital.
When she understood that it was not just an ordinary disorder or food
poisoning, she did her best to keep the rest of the family from worrying.
She did not tell the children that the sudden and strange disease of their
father was growing progressively worse.

Viktor Yushchenko’s relatives understood the seriousness of the situation
only on September 18, when he, exhausted and with a visibly swollen face,
made a speech at a rally in the European Square: “My dear Ukrainians! I am
happier than ever before to be here today with you!” His elder daughter
Vitalina was crying beside the platform. She is pregnant, and her relatives
did their best to keep her from being upset.

Thousands of Kyivans who came for the rally that day wished above all for
Yushchenko’s good health. Kateryna is sure that her husband recovered
quickly due to the prayers of his relatives and the support of the million
of Ukrainians. Their six-month old son Taras, who during all the difficult
days stayed with his mother in hospital near his father, unknowingly helped
his father as well. There, the boy got his first tooth and learned how to
sit on his own.

(Q) - Kateryna Mikhailovna, what was your perception of what happened?
After all, you have repeatedly said that Yushchenko’s adversaries are
capable of anything. Were you psychologically ready for such an event?
(A) - Of course I have always feared for Viktor, but I never even imagined
that his enemies would carry it this far. That is why the first symptoms of
his illness did not cause me serious concern. I remember the evening very
well. On the night of September 6 Viktor came home late. I, as usual, kissed
him and felt a strange taste of a medicine on his lips. I even asked him if
he took any medicine. Viktor said he did not. He said he was tired and said
that he did not really want to go to that last meeting.

At first I tried to reassure myself, thinking that it was just an ordinary
illness that anybody could have. Moreover, until the Ukrainian doctors
diagnosed food poisoning we thought it was just weariness, resulting from
his endless tours, rallies and meetings with people.

(Q) - When did you understand that it was not just a flu?
(A) - I understood how serious it was only a few days later, when my husband
felt worse. Some of our friends and my husband’s colleagues insisted on an
urgent examination in a reputed European hospital from the very outset. They
talked about the need for an independent examination, and about security
issues. But we hesitated to make the decision. Fortunately, the decision
turned to be correct, since, according to the Austrian doctors, the
preliminary diagnosis made here, in Ukraine, and the treatment prescribed
were inaccurate. So by delaying the hospitalization we ran the risk of
losing Viktor. Doctors believe that had we been only a few days later there
was an 80% chance that he might have died.

(Q) - Viktor Yushchenko’s illness has become a trial for your family. What
is the atmosphere in you home now? How are the children?
(A) - The older ones, Vitalina and Andrey, took it very hard. Until our
return from Austria I did not tell them that Viktor was in such a serious
condition. We were worried much Vitalina, who is pregnant now. The little
ones, Sofia and Hrystyna, did not fully realize what was going on and kept
on asking what was wrong with their father.

(Q) - Does Viktor’s mother know about what has happened?
(A) - Varvara Tymofeevna suffered a heart attack right before Viktor’s
illness. We did not let her watch news on Ukrainian TV. She worries about
her son, and she cries when she seas all this mud-slinging by his opponents.
She is in hospital in Kyiv now, but she thinks about her chickens, geese and
goats all the time. We were planning to transfer her to a different unit,
but she refused because she made friends with some of the nurses. Varvara
Tymofeevna is a special, wise and reasonable woman. She, as with all
mathematics teachers, has a brilliant memory.

(Q) - How did your husband take the fact that many of the politicians did
not support him, and what was his reaction to the cynical comments by his
colleagues in parliament?
(A) - At first, we did not attach any importance to this. Since he was in
such a critical condition we were thinking only about his life. We learned
of the cynical statements of the representative of the Presidential
Administration only in Austria. By the way, that remark is regarded abroad
as the personal position of the President. All the time, people approach me
and ask: is it really possible that the President reacted that way to the
illness of the former prime minister of Ukraine?

It hurt Viktor and me when we learned about the many thoughtless comments
by the people who we really liked, with whom we talked, whom we helped
and supported. I believe that their reaction reveals first of all their
breeding and humaneness.

(Q) - What is your reaction to the fact that Yushchenko’s opponents use your
name in their counter-propaganda?
(A) - They cannot dig up dirt on my husband; that is why they started on his
family. Viktor’s political opponents are trying to project an image of a spy
in his wife, and thus discredit him. I won’t even say it is immoral and
illegal to interfere in somebody else’s life. We have experienced a lot
recently… But I am afraid to live in the state, where a women and her three
little children are “a threat to the national security of the country”.

After all, I am a Ukrainian, my family observes national customs and
traditions. My parents were born and grew up here in Ukraine: my mom was
born in the village of Litki in Kyiv region, my dad in the village of
Zaitsyvka in Kharkiv region. It so happened that they found themselves far
away from their motherland. My mom was only 14 when the Nazis drove her
as an Ostarbeiter to Germany. There she met my dad, who as a Soviet Army
soldier was taken prisoner and put into a concentration camp. They married
in 1945 and wanted to return to Ukraine, where their families lived. They
were well aware of what they were threatened with when they returned.

As comrade Stalin said then, “there are no captives, there are only
traitors.” But then it turned out that my dad had severe tuberculosis. He
was operated on, and he had half of his lungs and ten ribs removed. He spent
ten years in a sanatorium without seeing his family. The whole time, my
older sister lived in convents and with others’ families. My mom worked hard
to pay for my father’s treatment. Later, my parents moved to the USA at the
invitation of a church community there. For the rest of his life, my father
worked as an electrician in a small town, and dreamed of returning to
Ukraine. He is buried at Lesnoye cemetery in Kyiv.

I am happy that now I live in Ukraine, that I have returned to my
motherland. Long ago I decided for myself that I would become a
Ukrainian citizen. In 1999, lawyers told me that to this end I must
permanently live for five years in Ukraine. Prior to 1999, I came here
only on working visits. My permanent residence began when I had
a family in Ukraine. I have already lived here for the required five years.

That is why literally one of these days I will apply for Ukrainian
citizenship. If not for Viktor’s disease, I would have already applied,
since I planned to do it early in September. I would really like it if the
political opponents of my husband never ever speculated on this topic.

(Q) - Have you ever tried to talk Viktor out of being in politics and
fighting for the presidency? It is obvious that he could have a brilliant
career as a banker or a businessman, and you would have a happy family
and a quiet life.
(A) - I would be lying if I said that I did not try. Of course I tried to
talk with him about his security, about our children and about the most
important thing for us, that he be always with us. Viktor is indeed a highly
educated and highly professional economist and he would always find a
good job. But all these talks were nipped on the vine. First, it is
impossible to influence Viktor, even if it is a domestic matter.

Second, he insists that we do not talk about politics at home. And the most
important thing is that his decision to go into politics was prompted by
only one wish, to serve Ukraine. This is the cause of his life and, believe
me, I do not want to say fine words, but for the last several years his work
has been dedicated to only one goal. He sincerely wants Ukraine to be a
prosperous and democratic country.

(Q) - How does he take all that has happened to him?
(A) - Philosophically. He knows what Ukrainian politics is like, and he does
not have any illusions about the presidential campaign. The problem is that
Viktor never complains: he keeps all his pain, moral and physical, inside
himself. He tries to safeguard his family from any troubles. With respect to
this situation, he reassured us, saying that we got off lightly. He is
optimistic and he never concentrates on the negative. Viktor is a believer
and he is convinced that God and the support of his family helped him to
survive.

(Q) - Have you ever had a wish to take your children and leave the country,
at least during the election, so as not to put your family into jeopardy?
(A) - Of course many people advised me not to put the children in jeopardy.
However, I know it is easier for Viktor when we are near. Now, when he has
dozens of meetings every day, when he talks to thousands of Ukrainians, he
needs a special, comfortable and warm atmosphere at home. He wants to see
his family and to feel our support. Of course he misses contact with the
kids. That is why he spoils them and says that I am a strict mother!

(Q) - Katheryna Mikhailovna, currently many creative personalities support
your husband. Lina Kostenko has become one of his supporters. Do you like
her poetry?
(A) My husband and I like her poetry very much. I also read the prose of
Yuriy Andrukhovych with pleasure. Earlier, I read a lot of classic Ukrainian
literature, and now I am interested in learning about modern literature. In
general, we are lucky to talk to interesting, creative people. A wonderful
singer, Nina Matvienko, actress Natalia Sumska and her husband Anatoliy
Hostikoev visited us. We like our Ukrainian singers Oksana Bilozir,
Oleksandr Ponomarev, Taras Petrinenko, and groups VV and Elza’s Ocean.
Viktor highly appreciates the support of all the people who trust him. They
helped him to get through this trial by sickness. -30-
----------------------------------------------------------------------------
Note from Zerkalo Nedeli: Currently Kateryn and her youngest son are again
in Austria. Doctors insisted that Viktor Yushchenko come to Vienna for
repeat treatment. http://www.mirror-weekly.com/ie/show/514/47927/
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER FOUR
========================================================
4. "KIEV PROTESTS CANADA'S COMMENTS"
Envoy fuels diplomatic row with talk of 'unfair' election coverage

By Mark MacKinnon in Moscow, Globe and Mail
Toronto, Ontario, Canada, Monday, October 4, 2004 - Page A11

MOSCOW -- Canada has made a striking, overt foray into Ukraine's
presidential election race, charging that the campaign has been unfair so
far and touching off a diplomatic row between Ottawa and Kiev.

In a recent statement to the Ukrainian press, Canada's ambassador, Andrew
Robinson, said he is "seriously concerned that the forthcoming Ukrainian
elections will fail to meet democratic standards." He charged that
state-controlled media and other administrative resources are being used to
promote the campaign of Prime Minister Viktor Yanukovich over his chief
rival, Viktor Yushchenko, who leads in most opinion polls. The vote is
scheduled for Oct. 31.

Shortly after issuing his statement, Mr. Robinson was called in by Ukraine's
Foreign Ministry, which complained that his comments were "partisan."

In a telephone interview, Mr. Robinson rejected the allegation and said he
was calling only for the elections to be honestly contested, something he
believes hasn't been the case to date.

"It's important for Ukraine and for the world that the election is free and
fair, and that whoever is elected as a result has the credibility to deal
with the challenges the country faces," he said.

"However, things are looking very bad from the perspective of free
elections. There are some real violations that we're seeing."

Mr. Robinson said his statement was made in close consultation with Ottawa
and represents the position of the Canadian government, which is concerned
"as a friend" about the developments in Ukraine.

The remarks were a seeming expression of a growing frustration about the
lack of political openness in Ukraine 13 years after it won independence
from the former Soviet Union. Canada was the first Western country to
recognize Ukrainian sovereignty in 1991, and Canadians, many of them of
Ukrainian descent, were involved in drafting the country's post-Soviet
constitution and other legal reforms.

Canada has taken on the leadership of an informal group, which also includes
the United States and some members of the European Union, that is monitoring
the election. Ottawa has provided 15 of the 45 long-term election observers
for a mission led by the Organization for Security and Co-operation in
Europe, and will send another 30 short-term observers closer to voting day.
The Winnipeg-based Ukrainian Canadian Congress is sending some 80
volunteer observers.

Mr. Robinson took particular aim at the main state television channel, UT-1,
which one embassy official said is estimated to have devoted 10 times more
coverage to Mr. Yanukovich's campaign than to any of the opposition
candidates, which include Communist leader Petro Symonenko and Oleksandr
Moroz, head of the Socialist party. Other media are often harassed, or given
temniki: instructions from the government about how to cover a certain
story, Mr. Robinson said.

Some portray the election campaign as crucial in determining whether Ukraine
chooses the path of democracy and moves closer to joining the EU, or slides
back toward the authoritarianism of the past. Tellingly, the campaign has
been rocked by a series of scandals.

In September, Mr. Yushchenko, who leads the liberal Our Ukraine movement
and has a 10-point lead in most polls, fell ill and accused his opponents of
trying to poison him. He made an angry speech to parliament (the left side
of his face was swollen and seemingly paralyzed) in which he said the
government had tried to kill him.

Mr. Yanukovich, who is heavily backed by outgoing President Leonid Kuchma,
was himself later taken to hospital after a mysterious incident during which
he was pelted with an egg. His staff said he had also been hit with a
television camera battery, though that was not seen by journalists around
the Prime Minister, and opponents accused him of trying to win back lost
sympathy after Mr. Yushchenko's apparent poisoning.

Observers say the election risks devolving into a farce, and many welcomed
Mr. Robinson's criticisms. "His remarks were fair. It's not a big secret
that the way the election campaign is proceeding does not match the
standards for the Western democracy that Ukraine declares it wants to be,"
said Leonid Polyakov, an analyst with the Kiev-based Razumkov Centre for
Economic and Political Studies.

Mr. Polyakov said that Canada has sizable clout in Ukraine because of the
large Ukrainian diaspora living in the country.

Ostap Skrypnyk, executive director of the Ukrainian Canadian Congress, also
applauded the intervention. "We're glad that Canada has decided that these
elections are important and that some diplomatic capital needed to be
expended on making these points," he said. "Sometimes friends have to blunt
about what's going on in their friend's backyard." -30-
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER FIVE
========================================================
5. UKRAINIAN PRESIDENTIAL CAMPAIGN QUOTES
27 Sept-3 Oct 04, 2004

Quotes package from BBC Monitoring, in English 3 Oct 04
BBC Monitoring Service, United Kingdom; Oct 04, 2004

KIEV - The investigation of the causes of opposition candidate Viktor
Yushchenko's mystery illness continued, as did recriminations over the
incident in Ivano-Frankivsk on 24 September when Prime Minister Viktor
Yanukovych collapsed after being hit by an object thrown by a student.
Yanukovych told senior representatives of the Russian media that he favoured
giving Russian the status of a second state language and introducing dual
citizenship in Ukraine, and also expressed scepticism about the benefits of
the country joining NATO. Speculation about the possible disruption of the
election intensified.

The following is a selection of quotes by presidential candidates and other
Ukrainian public figures in the period 27 September-3 October:

YUSHCHENKO'S ILLNESS
I am a bit surprised that the whole discussion has focused on whether or
not Yushchenko was poisoned and by what means. I am a mountaineer, I
am an alpine skier, my health is normal, I have had no chronic disease, not
a single one in all my 50 years. I am a healthy person. The whole cocktail
which I faced after 5 September, of course it would knock down any bull,
any bull.
Viktor Yushchenko speaking on arrival in Vienna where he is to undergo
further treatment, Inter TV, 30 September

When I arrive at the clinic, Inter and ICTV [pro-government TV channels]
are there. When I arrive at the airport, ICTV is there. They are camped
right outside the hospital, and you can't take a step. Everything that those
channels dig up is collected in order to disparage me and to mislead people
about my treatment.
Yushchenko, Ukrayinska Pravda web site, 2 October

Viktor Yushchenko has misled the Ukrainian people. This behaviour does
not concern him alone. It discredits the Ukrainian political scene and gives
reasons for the international community to draw humiliating conclusions
about the nature of political competition in Ukraine. The speculation over
Yushchenko's health by his entourage has resulted in an equivocal attitude
to the Ukrainian political scene and to our state. He should honestly admit
this before the entire Ukrainian people.
Statement by Viktor Yanukovych's election HQ, UT1 TV, 29 September

We will do everything to resolve the case as soon as possible. This is a
matter of honour for the Security Service of Ukraine (SBU).
SBU chief Ihor Smeshko speaking after reporting to the ad hoc parliament
commission investigating Yushchenko's illness, UNIAN news agency, 28
September

I respect Viktor Andriyovych (Yushchenko). He's a fine person - clever,
tall, an intellectual. What else can we say of him? But he's not a real
man... If that sort of thing happens to a real man, he doesn't tell anyone
about it except his family. Haven't we all had food poisoning? ... But
having diarrhea is an embarrassment. Why should the whole world know
about it?
Kiev mayor and presidential candidate Oleksandr Omelchenko, Ukrayinska
Pravda web site, 29 September

A head of government should be a person with iron will, he should lead
rather than be led. Unfortunately, Viktor Andriyovych (Yushchenko) does not
possess such qualities. When he came to Donbass (as prime minister, at the
time when Yanukovych was regional governor), I remember how helpless he
looked.
Yanukovych, Interfax-Ukraine news agency, 27 September

ATTACK ON YANUKOVYCH
It is the height of cynicism for [Yanukovych's team] to bury the emotional
and psychological weakness of Yanukovych and his team in a slanderous
campaign against Yushchenko. But it is even more cynical for Yanukovych
and his people to use this incident to stir up interethnic hostility, which
is what Ukrainian and Russian TV channels are doing illegally. If a person
is frightened by an egg, what has nationalism got to do with it?
Our Ukraine MP Mykola Tomenko responds to Yanukovych's allegation
that Yushchenko's entourage were responsible for the attack on him,
Ukrayinska Pravda web site, 27 September

If Yanukovych has any evidence that my team might be involved in this act
of provocation, he should present it to an ad hoc parliament investigating
commission, rather than make empty declarations.
Yushchenko, Interfax-Ukraine news agency, 30 September

YANUKOVYCH'S PRO-RUSSIAN STATEMENTS
The introduction of NATO standards would mean just this - shutting down
our [military-industry] plants, fixing a lock and buying weapons. We cannot
allow that to happen.
Yanukovych, Interfax-Ukraine news agency, 27 September

Ukraine cannot imagine how a European security system can be built
without Russia; we will settle this issue together with Russia.
Yanukovych, Interfax-Ukraine news agency, 27 September

Let us call this the presidential race. I have repeatedly said that many
people promise things which they cannot do at all. [Yanukovych] has
promised to make a bridge across the Kerch Strait without knowing
that this is impossible from a geological standpoint.
Kuchma, Interfax-Ukraine news agency, 28 September

I agree with Kuchma's comments on the subject, although the question
arises as to why, during his 10 years in office, Kuchma was never able to
formulate a meaningful language policy that everyone could understand.
As a result, an attempt is being made in 2004 to foist the same discussion
on society as in 1994.
Yushchenko, Ukrayinska Pravda web site, 2 October

ELECTION MAY BE DISRUPTED
I'm increasingly inclined to think that derailing the election is not just
an option, but a working scenario. The authorities have definitely gone for
the strong-arm electoral option. It may end in falsifications and the
declaration that the elections in many regions are invalid.
Yushchenko, Ukrayinska Pravda web site, 2 October

There are obvious signs of Ukraine's moral humiliation at a critical level,
and the mood of uncertainty and hopelessness is being spread among people
in the hope that they will accept the disruption of the election
indifferently or neutrally. The artificial polarization of public opinion,
the organization of confrontation between regions, the attempts to split
this country, the provocation of conflicts between presidential candidates,
and the strengthening of mutual distrust among them have become all
too obvious.
Parliament speaker Volodymyr Lytvyn, Interfax-Ukraine news agency, 28
September

In this situation, if the elections eventually do take place, it is easy to
forecast that an elected president of Ukraine objectively will not be able
to position himself as a leader of the whole nation and he will not have
appropriate support in society. Elections played according to this scenario
would lay the foundation for a conflict vector of Ukraine's development.
Lytvyn, Interfax-Ukraine news agency, 28 September

When I watch the presidential race today, I can see everyone wanting to
have their own Ukraine. This will not work. People need a competition of
manifestos to make the right choice rather than what we see today. God
forbid there should be confrontation. You know where confrontation can
lead. So I am asking the main participants in these race: come to your
senses and think of tomorrow.
President Leonid Kuchma, ICTV TV, 29 September

Statements about a scenario to disrupt the election are appearing more
frequently and have become louder recently... A social confrontation is not
ruled out, and the election could be declared invalid. As head of the
Central Electoral Commission, I am very concerned about such statements.
I would like to say firmly and clearly that nobody will ever manage to
disrupt the election.
CEC head Serhiy Kivalov, 5 Kanal TV, 1 October -30-
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER SIX
========================================================
6. 50,000 UKRAINIANS SAID ABLE TO VOTE IN MOLDOVA'S
REBEL DNIESTER REGION, BALLOT BOXES BEING SENT OUT

Source: TV 5 Kanal, Kiev, in Ukrainian, 1 Oct 04
Provider: BBC Monitoring Service, UK, in English, Fri, Oct 1, 2004

KYIV - [Presenter] The Central Electoral Commission [CEC] today
approved the design and text of ballot papers. It will send the first batch
of ballot boxes abroad a day after tomorrow. [Passage omitted: shape
and colour of the ballot paper.]

First, the ballot boxes will be sent to Italy, the USA and Canada, the CEC
head Serhiy Kivalov said. He also said that about 50,000 Ukrainian citizens
will be able to vote in [Moldova's breakaway] Dniester region.

[Kivalov, in Russian] I talked to the foreign minister yesterday. A Foreign
Ministry delegation has left for the Dniester region to study this issue and
to settle this problem. The Moldovan government has given its consent to
set up these polling stations. -30-
-------------------------------------------------------------------------
FOOTNOTE: We hope the election monitoring organizations have their
plans set regarding monitoring the Ukrainian vote in Dniester.
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER SEVEN
========================================================
7. PROFILE: UKRAINIAN INFLUENTIAL TYCOON RINAT AKHMETOV

BBC Monitoring Service, UK, Fri, October 1, 2004

Donetsk-based Ukrainian tycoon Rinat Akhmetov is one of the wealthiest
and most influential people in the country, although he maintains that his
main interests are business and football and that politics is merely a
sideline and lobbying tool. Although he keeps a relatively low profile,
Akhmetov occupies a leading position in the establishment . When he
appears on television it is usually to talk about football and his club,
Shakhtar Donetsk.

Akhmetov wields power locally through his close friend and ally Borys
Kolesnykov, the chairman of Donetsk Regional Council, and is seen by
observers to be the regional political and financial power behind the
throne.
EARLY CAREER
Rinat Leonidovych Akhmetov was born on 21 September 1966 in the
settlement of Zhovtneve (Oktyabrskoye in Russian) in the city of Donetsk,
into a miner's family of Volga Tatar descent. He worked as a miner himself
before graduating from the economic faculty of Donetsk State University
in the early 1990s.
The so-called Donetsk financial group had to restructure and re-assert
itself on independence in 1991, as a battle over resources and plants ensued
between Donetsk and neighbouring Dnipropetrovsk Region, and it is at this
point that Akhmetov began his ascent of the business ladder, although many
of the details remain obscure. In 1995 the important Industrial Union of
Donbass was formed, and Akhmetov is believed to have had close links to it.
Akhmetov's business career began in banking. The Donetsk joint-stock
Aktseptbank was registered in 1992 and duly re-registered as the Donetsk
City Bank (Dongorbank) in July 1995.
The main area of its operations was controlling the flow of capital of local
businesses. Soon the bank became a nominal shareholder in the majority
of industrial plants in the region, and Akhmetov was one of its owners. "The
first serious money came in after the Donetsk City Bank was opened in 1995.
I was there at the beginning and I am here now, and as well as being a
shareholder of Dongorbank, I head its supervisory council," Akhmetov said
in an interview for the Zerkalo Nedeli weekly.
In autumn 1995 the president of the Shakhtar football club, Akhat Brahin
(nicknamed Alik the Greek), was killed in an explosion during a match in the
stadium . The press liked Akhmetov closely to Brahin, and Korrespondent
magazine said that the killing made Akhmetov rethink his image.
IMPRESSIVE EMPIRE
In 1996 Akhmetov became head of the Shakhtar Donetsk sports club and in
1997 began to cement his political ties. In May 1997, a protege of Prime
Minister Pavlo Lazarenko, Donetsk governor Polyakov resigned after 10 months
in office. He was replaced by Viktor Yanukovych, Polyakov's former first
deputy. Yanukovych is close to Akhmetov and ensured that the latter could
carry out his business operations. Akhmetov did not officially interfere in
politics. In 2000 Akhmetov had finally set up his own "empire", and in
November the System Capital Management company was registered in
Donetsk. In one interview, Akhmetov said that he owned 90 per cent
of SCM's shares.
Through the mediation of SCM, Akhmetov owns 98 per cent of the Ukrayina
Television and Radio Company, 24 per cent of the shares of the
Kramatorsk-based Kuybyshev machine-building works, 52 per cent of the
Azovstal Trading House, a controlling stake in the Azovstal Steel Works, 99
per cent of the Shakhtar Football Club and 99 per cent of the shares of the
luxurious Donbass Palace Hotel in the centre of Donetsk and the Viktoriya
Hotel. These are just some of his holdings. Some 98 per cent of the shares
of the Sarmat brewery belong to him, as do stakes in other breweries. Some
51 per cent of the shares in the DCC mobile phone operator belong to
Akhmetov. Experts says the ARS group is close to Akhmetov.
The group has holdings in a vast number of coal mines and plants. The
DANKO company, which owns the Yenakiyeve Steelworks, is also close
to Akhmetov.
The Ukrayina Television and Radio Company, the Salon Dona i Basa and
Vecherniy Donetsk newspapers and the Segodnya publishing house and
newspaper of the same name are all owned by Akhmetov's group. Ukrayina
TV is now broadcast in 20 regional centres and via satellite. The opposition
web site Ostrov reported on 26 April 2004 that Akhmetov is one of the main
pro-Kuchma media oligarchs.
In the course of 2003 Akhmetov acquired a number of assets, which had
formerly belonged to friends and rivals of the Industrial Union of Donbass.
In June 2004 a consortium formed by Akhmetov and Viktor Pinchuk, President
Kuchma's son-in-law and a leading business figure in Dnipropetrovsk, won the
tender for Ukraine's largest steelworks, Kryvorizhstal, seeing off bids from
foreign consortia in a contest that many observers and politicians saw as
biased in favour of the Ukrainian bid. Krivorozhstal is one of the world's
most profitable steel mills and produces about 20 per cent of Ukraine's
steel output.
Akhmetov has been prominent recently in a series of pre-election
privatizations. In June 2004 SCM bought a 99 per cent stake in the mining
holding Pavlohradvuhillya for 262m dollars. A month later it bought a
50-per-cent stake in the Central Ore Enrichment Integrated Works in
Kryvyy Rih for almost 20m dollars, after it had already held a 44-per-cent
stake. SCM also bought a 50-per-cent stake in the Northern Ore Enrichment
Integrated Works for 208m hryvnyas in July. The two works are among
Ukraine's biggest producers of iron ore.
PERSONAL
Akhmetov is a patron of the arts, plays the piano and enjoys football. He is
known as the "emperor of Donetsk" as his influence is apparent in business
and politics in the Donbass, Ukraine's industrial heartland. He was one of
the first to speak openly about regional patriotism and champions Donetsk in
everything he says and does. Akhmetov is believed to be the wealthiest man
in Ukraine and one of the wealthiest in Europe. Research by the Polish
weekly Wprost published at the end of September put Akhmetov as the sixth
richest person in Central and Eastern Europe, with a worth of 3.5bn dollars.
If true, this means he is estimated to have doubled his capital in 12
months.
He is seen as very ambitious. His business holdings are growing, possibly
with an eye on European markets. He has bought expensive foreign players
and coaches for his beloved Shakhtar and is yearning for more success. His
lavish spending has generally failed to deliver. The one truly successful
season was 2001/2, when Shakhtar won the Ukrainian championship and the
domestic cup. Despite its generally poor showings in European competitions,
Akhmetov persists in his dream of turning Shakhtar into a big European
football club. Work has started on a new stadium for the club, which is
expected to cost over 200m dollars and to be completed in 2007. -30-
========================================================
ACTION UKRAINE REPORT-04, No. 181: ARTICLE NUMBER EIGHT
========================================================
8. IRAQ THANKS UKRAINE AND URGES UKRAINE NOT TO
REDUCE ITS PEACEKEEPING CONTINGENT

Source: Era, Kiev, in Ukrainian, Mon, 4 Oct 04
BBC Monitoring Service, UK, in English, Mon, Oct 04, 2004

President Leonid Kuchma has received a letter from Iraqi Deputy Prime
Minister Barham Salih, in which he expressed gratitude for the contribution
of Ukrainian troops to ensuring the peace and security of the Iraqi people.

The letter also contains a request for Ukraine to maintain the number of its
peacekeepers at the current level.

[The National Security and Defence Council has supported a Defence
Ministry proposal to gradually reduce the size of Ukraine's 1,600-strong
peacekeeping contingent in Iraq - see Interfax-Ukraine news agency, Kiev,
in Russian 1354 gmt 28 Sep 04.] -30-
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER NINE
========================================================
9. UKRAINIAN DIASPORA EXERCISES ITS POLITICAL MUSCLE
Today there are about one million Canadians of Ukrainian heritage

By Estanislao Oziewicz, Globe and Mail
Toronto, Ontario, Canada, Monday, October 4, 2004 - Page A11

It started more than a century ago, with two peasants from a tiny village in
what was then the Austro-Hungarian empire. Wasyl Eleniak and Ivan Pillipiw
were the first documented Ukrainian settlers in Canada when they began
homesteading in Alberta in September of 1891. Thousands would follow in
several waves, and today there are about one million Canadians of Ukrainian
heritage, forming one of the country's most mature, well-organized and
politically influential ethnic communities.

"We have become the old stock, in a certain way," says Frank Sysyn, director
of the Canadian Institute of Ukrainian Studies at the University of Alberta.
Indeed, one became a Supreme Court justice, another governor-general and
many others became premiers, senators, members of Parliament, provincial
legislators -- and hockey stars.

It was hardly a surprise that 13 years ago, after Ukraine won independence
from the former Soviet Union, Canada -- which, at the time, had the largest
Ukrainian diaspora in the world -- was the first Western country to
recognize Ukrainian sovereignty.

"Because of the large numbers of Ukrainians here, Canada has had a very
special relationship with Ukraine," said Prof. Sysyn, explaining why
Canada's public worries about the fairness of the current presidential
election were welcomed by most Canadian-Ukrainians, even though it
irritated the government in Kiev.

Andrew Robinson, Canada's ambassador, drew a rebuke recently from
Ukraine's foreign ministry for saying that he was concerned "as a friend"
about non-democratic developments in the election.

For many Canadians of Ukrainian heritage, even those whose families have
lived in Canada for generations, there is a "sense of mission" about their
ancestral homeland, which has been shadowed by government scandal,
anti-democratic tendencies and corruption, Prof. Sysyn said in an interview.
"You might call it the unfinished project. The project of full, democratic
independence and economic reform is not yet complete."

According to Lubomyr Luciuk, director of research for the Ukrainian
Canadian Civil Liberties Association, Ottawa's interest in Ukrainian affairs
is more about Ukraine's importance in geopolitical terms than any
"purported influence of the Canadian-Ukrainian community," many of
whom have scant interest in their homeland. "Maybe that's a sign of
maturity, that personally they're fully integrated and emerging as
Canadians. Isn't that what it's all about? " said Prof. Luciuk, who teaches
in Kingston at the Royal Military College.

In the Soviet days, Moscow was the arch-enemy of ardent Ukrainian
nationalists in Canada and Ottawa had to carefully balance the demands of
its own relationship with the Soviet regime against the domestic Ukrainian
community. It may be, Prof. Luciuk said, that now Ottawa and the Ukrainian
community in Canada are simply on the same wavelength, believing that an
independent, democratic and economically sound country of 48 million people
in Europe is better than one that "is mired in corruption, nepotism and
scandal."

He said that among engaged Canadian-Ukrainians, there is "a great deal of
unease" about the prospect of instability in Ukraine and the stirrings of
Russian imperialism. At the same time, he added, Ottawa recognizes that "in
many ways the election and its outcome is crucial for Europe." -30-
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER TEN
========================================================
10. ALEXY II SAYS PROGRESS IN RELATIONS WITH VATICAN
DEPENDS ON CATHOLICS -- ALEXY II

ITAR-TASS, Moscow, Russia, Sun, October 3, 2004

MOSCOW - Progress in the relations between the Russian Orthodox Church
and the Roman Catholic Church depends on the Vatican, Patriarch of Moscow
and all Russia Alexy II said at the opening of the Bishops' Council in the
Savior Cathedral in Moscow on Sunday.

The creation of new Catholic structures on territories of Russia, Kazakhstan
and Ukraine without prior notification of the Russian Orthodox Church is the
main obstacle to normal dialog, he said. "We are confident that it was
unnecessary to upgrade the status of existent Catholic structures for
Catholic believers whose number is not that large in Russia and other CIS
countries," Alexy II said.

He also reminded the Bishops' Council about "ongoing confrontation between
Orthodox believers and Greek Catholics in West Ukraine" and reports on
proselytism coming from various areas of Russia. Yet the Patriarch described

as "a good step of the Catholic Church" the delivery of a replica of the
Kazan Icon of the Mother of God. -30-
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER ELEVEN
========================================================
11. LETTER TO ALL CITIZENS OF THE FREE WORLD
The moment of truth for the Ukrainian Nation

Civic Campaign PORA, www.pora.org.ua/en
Kyiv, Ukraine, Monday, October 4, 2004

KYIV - Now, while you are reading this letter, 48 million people that
live in one of the largest European countries, have a unique chance to make
their choice and change the ruling corrupted regime. THIS AUTUMN 2004
is THE MOMENT OF TRUTH FOR UKRAINIAN NATION

WE KNOW THAT CHOICE OF UKRAINIAN PEOPLE IS CLEAR.
They are tired of years of corrupted regime and distrusted government.
They are exhausted by permanent lies and lawlessness. They want
prosperity and stability for their children. They want to live in a
democratic country. They value freedom of expression and freedom of
press. They want to join the European community. They want their choice
to be heard and respected.

But we also know that THIS CHOICE COULD BE FALSIFIED, as
it happened during the parliamentary elections in 2002, during the elections
in Mukacheve and in tens of small towns all over Ukraine. We recognize
that people's choice could be disgraced and replaced by the will of a
small oligarchic group. And again millions of Ukrainians will be deceived.

We started this letter of freedom and solidarity to protect free and
fair results of elections.

IF YOU BELIEVE IN FREEDOM,
IF YOU CARE ABOUT FUTURE OF UKRAINE,
SIGN THIS LETTER

to PREVENT FALSIFICATIONS and STOP REPRESSIONS against
thousands of young Ukrainians, who created a national network of
volunteers and started PORA (TIME) civic movement, aimed at ensuring
and protecting fair and democratic elections of the President of Ukraine.

WE NEED YOUR HELP because regime will be afraid to break the
rules in front of world community, because only UNITED we can win.

There is no alternative to public action:
1. Check our website www.pora.org.ua/en
2. Sign our letter of freedom and solidarity
http://pora.org.ua/en/component/option,com_mosforms/mosform,1/Itemid,110/
3. Make a difference: join PORA Campaign and contribute to campaign
http://pora.org.ua/en/content/view/83/95/
4. Forward this letter to your friends

There might not be other chance
It is TIME to act, TIME to struggle, TIME to win
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER TWELVE
========================================================
12. KHARKIV OPENS TALKS WITH 7 INTERNATIONAL BANKS
ON PLACING MUNICIPAL LOAN EUROBONDS FOR USD 50-70

Ukrainian News Agency, Kyiv, Ukraine, Wed, September 29, 2004

KYIV - Kharkiv city has started negotiating placement of its municipal loan
Eurobonds for USD 50 to 70 million in 2005 with seven western banks.
Kharkiv deputy mayor/ head of the city council's chief department on
economics and market relations Yevhen Chernenko made this statement
to the press. He said the city wants to draw the funds at an annual interest
not higher than 8-9% for 5 years.

Chernenko named the banks that entered into preliminary negotiations: UBS,
Dresdner Kleinwort Wasserstein, Deutsche Bank, CSFB, Merrill Lynch,
ABN AMRO, and JP Morgan. All of them are interested in a Eurobond
placement tender, he said.

Chernenko added that funds raised from the sale of Eurobonds would be
spent on development of the city, reconstruction of roads, construction of
road junction, modernization of fixed assets of municipal enterprises.
Collaboration of city authorities and investors in reconstruction of Kharkiv
airport is being looked into as one of the possibilities.

The funds might be also used for resettlement of tenants living in old
houses in Kharkiv downtown and preparation of the land plots they occupy
for development.

According to Chernenko, chief departments of the city council are estimating
the project and preparing proposals as to how to use the funds.
When they finish their work, the sum of the loan will be finally determined.
The size of the city budget allows for attracting up to USD 70-80 million.

Loan instruments will be chosen upon approval of the final volume of the
loan and selection of a lead manager. "So far we are considering 50-70
million. This amount suits any instrument. And here we will determine the
option the city will benefit from. We will choose the instrument on the
cheapest conditions possible," Chernenko said.

When the tender is finished, Kyiv-based agency Kyiv Rating Ukraine will
assign an internal credit rating to the bonds while Moody's will assign an
external rating. The city council is going to hold one more tender on
restricted
conditions to select the second agency for assigning an external rating.
"We hope to receive a rating not lower than Kyiv's," Chernenko said.
The city council expects the funds to come in March 2005 or later. A
deficit required to cover the loan will be provided for in the city budget.

As Ukrainian News earlier reported, Kharkiv mayor Volodymyr Shumilkin
announced in early August that Kharkiv plans to issue UAH 50-70 million
in Eurobonds in 2005. -30-
========================================================
ACTION UKRAINE REPORT-04, No.181: ARTICLE NUMBER THIRTEEN
========================================================
13. POLISH WOODEN FLOOR MAKER BARLINEK TO BUILD
UKRAINE'S LARGEST SAWMILL

Polish News Bulletin, Warsaw, Poland, Mon, Oct 04, 2004

WARSAW - Only a month ago the AGM of the wooden floor producer
Barlinek, in the person of the company's owner Michal Solowow, decided
to raise the firm's capital by ZL30m with the objective to build two
sawmills.

Now Barlinek is planning yet another investment, this time in the Kostrzyn
Special Economic Zone, which - luckily for the company - has just been
expanded to part of the town of Barlinek, the land adjacent to the existing
plant.

"To enter the zone, one of the conditions must be met: investing at least
EUR40m or employing 500 people. We have chosen the first option," said
Barlinek's president Pawel Wrona. The new floor board production plant
may be completed by 2006, and all of the production will go for exports.

Meanwhile, Barlinek is preparing to open its branch in Ukraine. The
company will build Ukraine's largest sawmill there, which will provide
Barlinek's Polish plants with semi-products. -30-
========================================================
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let us know by e-mail to morganw@patriot.net.
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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),
P.O. Box 2607, Washington, D.C. 20013,
Tel: 202 437 4707, E-mail: morganw@patriot.net
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"THE ACTION UKRAINE REPORT"-2004 SPONSORS:
"Working to Secure Ukraine's Future"
.1. THE 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, Washington, D.C., Kyiv, Ukraine .
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.
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