"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 183
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, WEDNESDAY, October 6, 2004
-----INDEX OF ARTICLES-----
"Major International News Headlines and Articles"
1. UKRAINE ELECTIONS RESOLUTION URGING UKRAINE TO
ENSURE A DEMOCRATIC, TRANSPARENT AND FAIR PRESIDENTIAL
ELECTION PASSES THE U.S. HOUSE OF REPRESENTATIVES
THE ACTION UKRAINE REPORT
Washington, D.C., Wednesday, October 6, 2004
2. UKRAINE MEMBERSHIP OF NATO IMPORTANT SAYS US
DEPUTY DEFENCE SECRETARY PAUL WOLFOWITZ
Agence France Presse (AFP), Warsaw, Poland, Tue, Oct 5, 2004
3. UKRAINE STARTS PRINTING VOTING PAPERS FOR
THE OCTOBER 31 PRESIDENTIAL ELECTION
ITAR-TASS, Kiev, Ukraine, Wed, October 5, 2004
4. UKRAINIAN REGIONAL TV CARRIED SYMPATHETIC 23-MINUTE
DOCUMENTARY ABOUT PRIME MINISTER VIKTOR YANUKOVYCH
Source: Ukrayina TV, Donetsk, in Russian, 5 Oct 04
BBC Monitoring Service,UK, in English, Tue Oct 05, 2004
5. CHANGING COURSE-OR SPEED?
Experts caution against tarnishing cooperation with campaign statements
By Volodymyr Soniuk and Serhiy Solodky, The Day
The Day Weekly Digest in English, Kyiv, Ukraine, Tue, Oct 5, 2004
6. "INTERNATIONAL FINANCIAL AGENCIES SHOULD
WATCH THEIR BACKS IN UKRAINE"
OP-ED: by Member of Parliament Yevhen Zhovtyak
The Kyiv Post, Kyiv, Ukraine, Thu, Sep 30, 2004
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ACTION UKRAINE REPORT-04, No.183: ARTICLE NUMBER ONE
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1. UKRAINE ELECTIONS RESOLUTION URGING UKRAINE TO
ENSURE A DEMOCRATIC, TRANSPARENT AND FAIR PRESIDENTIAL
ELECTION PROCESS PASSES THE U.S. HOUSE OF REPRESENTATIVES
THE ACTION UKRAINE REPORT
Washington, D.C., Wednesday, October 6, 2004
WASHINGTON, D.C. - The United States House of Representatives passed
the Ukraine Elections Resolution,"Urging the Government of Ukraine to ensure
a democratic, transparent, and fair election process for the presidential
election on October 31, 2004" on Monday evening, Oct 4, 2004.
The resolution was originally introduced by Rep. Henry Hyde (R-IL), Chairman
of the House International Relations Committee (HIRC), together with Rep.
Chris Smith (R-NJ), Chairman of the Helsinki Commission and Rep. Tom Lantos
D-CA), (HIRC) Ranking Member.
Two very important Sections, numbers (8) and (9) of the Resolution in the BE
IT RESOLVED section are an addition to the original text of the Resolution.
The identical text of the Resolution shown below, minus sections (8) and (9)
passed the United States Senate back in July.
The following is the U.S. House of Representatives Floor Debate on the
Resolution and the text of the Ukraine Elections Resolution in its entirety:
U.S. HOUSE OF REPRESENTATIVES FLOOR DEBATE
Mrs. JO ANN DAVIS of Virginia. Madam Speaker, I move to suspend the
rules and agree to the concurrent resolution (H. Con. Res. 415 ) urging
the Government of Ukraine to ensure a democratic, transparent, and fair
election process for the presidential election on October 31, 2004, as
amended.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Virginia (Mrs. Jo Ann Davis) and the gentleman from Florida (Mr. Wexler)
each will control 20 minutes.
The Chair recognizes the gentlewoman from Virginia (Mrs. Jo Ann Davis).
Mrs. JO ANN DAVIS of Virginia. Madam Speaker, I ask unanimous
consent that all Members may have 5 legislative days within which to revise
and extend their remarks and include extraneous material on the concurrent
resolution under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Virginia? There was no objection.
Mrs. JO ANN DAVIS of Virginia. Madam Speaker, I yield myself such
time as I may consume.
Madam Speaker, I rise in support of H. Con. Res. 415 regarding free
and fair elections in Ukraine. I want to commend the gentleman from Illinois
(Chairman Hyde) for introducing this important and timely resolution and
thank the ranking Democrat of the full committee, the gentleman from
California (Mr. Lantos), for his strong support.
On October 31, the people of Ukraine will go to the polls to participate
in an election for their next president. The development of a strong
democracy in Ukraine has been slow and difficult over the past 13 years by
any measure. However, no issue will be more important to Ukraine's future
standing with the West than the strength of its democracy. Therefore, this
election, in many ways represents a historic opportunity for the people of
Ukraine to decide whether or not democracy can flourish in this important
nation.
Ukraine has an obvious need to maintain positive relations with its
neighbor, Russia. But with its resources and economic potential, Ukraine
can and should be an important element in the further stabilization of
Europe. However, its long-term commitment to democracy is the only way
Ukraine can become a full partner with the democracies of the Euro-Atlantic
community.
Because of the importance of relations between Ukraine and the West,
Ukraine has been reassured time and again that the door to the West remains
open. This month will be a crucial test of whether the Ukrainian people and
their government are willing to make the effort to walk through that door.
Regrettably, recent statements and actions by some in the current
political leadership have raised concerns in the international community and
in this Congress about whether this election will be open and fair. Based on
problems witnessed in the past elections in Ukraine, I believe it is
important that Ukraine's leaders understand that this election will be
regarded as a litmus test of Ukraine's commitment to democracy and to its
future in Europe.
It seems incomprehensible to me that with the rocky relationship the West
has had at times with the outgoing leadership in Kiev, that either of the
major candidates running for election would want his victory tainted by an
unfair electoral process, biased media coverage, and even thuggery.
Why would the next President of Ukraine want to spend the next 5
years under a cloud of legitimacy?
Many visitors to Ukraine, including several from this House over the past
few months, have raised the issue of free and fair elections. All have been
reassured by President Kuchma, Prime Minister Yanukovich, Foreign Minister
Gryshcenko, and Speaker of the Parliament, Lytvyn, that every effort will be
made to meet the government's commitment for a free and fair election. I am
afraid, however, that in many instances thus far, the rhetoric has not been
matched by the actions.
At the Subcommittee on Europe markup of this resolution in June, our
former subcommittee chairman, Doug Bereuter, noted that they would hold
those government officials to their word. We know that Ukraine's leaders
have heard our message, but we are concerned that some of them are not
taking that message seriously.
H. Con. Res. 415 notes the importance of the presidential election to
the success of Ukraine's transition to democracy. The resolution addresses
reports of government harassment of those who support opposition candidates
and of threats and violence against opposition leaders and their families.
It speaks to allegations of harassment of independent media in Ukraine and
about allegations of possible outright election fraud.
The resolution stresses how important it will be for President Kuchma and
other senior officials to take active steps to ensure that the kinds of foul
play seen in past elections do not become the norm during the remainder of
this presidential election.
Finally, the manager's amendment which has been included also includes
language calling on the United States Government to ensure that all of
Ukraine's election laws are being followed by the presidential candidates
and those working on their behalf.
Mr. Speaker, we in the Congress remain committed to assisting Ukraine in
building a stable, democratic and prosperous nation. What better way for
President Kuchma to leave office than to ensure that the people of Ukraine
have a free and fair choice as to who will lead them over the next 5 years?
We hope the elections in just a few weeks' time will prove that Ukraine
too shares these same goals.
I urge adoption of this resolution. Mr. Speaker, I reserve the balance of
my time.
Mr. WEXLER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of this resolution. Mr. Speaker, I
want to thank my friends and colleagues, the gentleman from California (Mr.
Lantos), the gentleman from Illinois (Mr. Hyde), the gentleman from New
Jersey (Mr. Smith) and Doug Bereuter for sponsoring this important
resolution, as well as the gentlewoman from Virginia (Mrs. Jo Ann Davis).
Mr. Speaker, this resolution reaffirms U.S. Congressional support for the
democratic aspirations of the Ukrainian people and the establishment of a
genuine democracy in Ukraine. Given the importance of Ukraine to the
stability of southeastern Europe and the strong ties between the Ukrainian
and American people, we must make every effort to put the relationship
between our two nations on a strong and democratic footing.
Unfortunately, the conduct of the previous parliamentary and presidential
elections in Ukraine was judged to be flawed by the Organization for
Security and Cooperation in Europe. We in Congress had hoped that the
Government of Ukraine had learned from its past mistakes, but all the
evidence elected collected so far about the conduct of this year's
presidential campaign points otherwise.
As the Ukrainian presidential election approaches in just 3 weeks, the
prospect for the election to be free and fair seems bleak.
Despite high-level protests by the United States government and the
Congress over the continued manipulation and control of the media by
national and local Ukrainian officials, these violations have continued
unabated and raise grave concerns regarding the commitment of the
Ukrainian Government to free and fair elections.
I am also uneasy about the efforts of the Government of the Russian
Federation to tilt the election in favor of the presidential candidate from
the ruling party.
Mr. Speaker, Ukraine has been a country at the crossroads for the past 12
years. This election will show the world whether the Ukrainian Government
is committed to democracy and the rule of law. It will also serve as an
indicator of the Ukraine's readiness to become a valuable member of the
Western community of democracies.
Congressional consideration of this resolution today, just 3 weeks before
the presidential election, sends an important message to the Ukrainian
electorate and the Ukrainian political elite that the U.S. Congress cares
deeply about the political future of Ukraine.
Mr. Speaker, the United States seeks a strong and lasting relationship
with Ukraine. Ukraine has already shown its good will by joining coalition
forces in Iraq. However, history has shown that the most enduring and
fruitful alliances can be sustained between genuine democracies which
share the same values and aspirations.
I would like to express my sincere hope that Ukraine will succeed in
conducting a democratic and fair election. Ukraine will then be on a firm
path of becoming a full-fledged member of Europe.
I [Congresswoman Jo Ann Davis of Virginia] strongly urge my colleagues
to support this resolution.
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I yield as much time as he
may consume to my colleague the gentleman from New Jersey (Mr. Smith).
Mr. SMITH of New Jersey. Mr. Speaker, I am very pleased that the House
moved to the timely consideration of H. Con. Res. 415 , which calls upon
the government of Ukraine to ensure a democratic, transparent and fair
election process for that country's presidential elections that are about to
take place on October 31.
As chairman of the Helsinki Commission, I join the gentleman from Illinois
(Chairman Hyde) in sponsoring this important resolution. H. Con. Res.
415 makes clear the expectation that Ukrainian authorities should,
consistent with their own laws and international agreements, ensure an
election process that enables all of the candidates to compete on a level
playing field.
International attention, Mr. Speaker, is now rightly focused on ensuring
free, fair, open and transparent presidential elections on October 31, with
a second round likely on November 21. These elections are critically
important to the future of Ukraine, yet we see on a daily basis an election
campaign that seriously calls into question Ukraine's commitment to OSCE
principles.
Without exaggeration, Ukraine is facing a critical election, a choice not
only between Euro-Atlantic integration versus reintegration into the former
Soviet Eurasian space, but a choice between further development toward
a European-style democracy, such as in Poland or Hungary, versus the
increasingly authoritarian system that prevails in Russia today.
Unfortunately, the pre-election environment in Ukraine gives great cause
for concern. Ukrainian voters clearly are not receiving balanced and
objective information about all of the candidates in the race. Ukraine's
state-owned television channels are heavily biased against the democratic
opposition candidate, Viktor Yushchenko, who is leading in the polls
nevertheless.
Independent media providing Ukrainians with objective information about
the campaign, including channel 5, are being shut down in various regions.
Journalists who do not follow the secret instructions from the presidential
administration, it is called temnyky, are harassed and even fired. Given the
stakes in these elections, Mr. Speaker, we should not be surprised that the
ruling regime has launched an all-out campaign against the free media and
against the opposition, the most recent of numerous examples being the
highly suspicious poisoning of Viktor Yushchenko.
In addition, numerous obstacles to a free and fair political campaign
have been placed by the national authorities, including intimidation of
citizens, candidates and campaigns, the harassment of citizen expressions
of political views, and the illegal use of State resources to promote the
candidacy of Prime Minister Viktor Yanukovich.
Equal conditions for candidates, including unimpeded access to media, and
an end to the intimidation and harassment of candidates and citizens must be
provided during the remainder of the presidential campaign and will be key
in determining whether or not the Ukrainian presidential elections will be
judged as free and fair by the OSCE and the international community.
The elections will be a watershed for the future direction of that country.
Ukraine has tremendous potential. An independent, democratic Ukraine
where the rule of law prevails is vital to the security and stability of
Europe. Ukrainian authorities need to radically improve the election
environment, however, if there is to be hope for these elections to meet
those standards.
Mr. Speaker, this resolution urges the Ukrainian government to guarantee
freedom of association and assembly, and it is not guaranteed now; ensure
full transparency of the election process; free access for Ukrainian and
international election observers; and unimpeded access by all candidates to
the media on a nondiscriminatory basis.
I [Congressman Chris Smith New Jersey] urge all Members to support this.
Mr. WEXLER. Mr. Speaker, I have no further requests for time, and I yield
back the balance of the time.
Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I have no further requests
for time, and I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Murphy). The question is on the motion
offered by the gentlewoman from Virginia (Mrs. Jo Ann Davis) that the
House suspend the rules and agree to the concurrent resolution, H. Con.
Res. 415 , as amended.
The question was taken; and (two-thirds having voted in favor thereof)
the rules were suspended and the concurrent resolution, as amended, was
agreed to. A motion to reconsider was laid on the table.
Whereas the establishment of a democratic, transparent, and fair election
process for the 2004 presidential election in Ukraine and of a genuinely
democratic political system are prerequisites. (Engrossed as Agreed to or
Passed by House)
108th CONGRESS, 2d Session, H. CON. RES. 415
CONCURRENT RESOLUTION
Urging the Government of Ukraine to ensure a democratic, transparent,
and fair election process for the presidential election on October 31, 2004.
HCON 415 EH, 108th CONGRESS, 2d Session
H. CON. RES. 415
CONCURRENT RESOLUTION
WHEREAS the establishment of a democratic, transparent, and fair election
process for the 2004 presidential election in Ukraine and of a genuinely
democratic political system are prerequisites for that country's full
integration into the Western community of nations as an equal member,
including into organizations such as the North Atlantic Treaty Organization
(NATO);
WHEREAS the Government of Ukraine has accepted numerous specific
commitments governing the conduct of elections as a participating State
of the Organization for Security and Cooperation in Europe (OSCE),
including provisions of the Copenhagen Document;
WHEREAS the election on October 31, 2004, of Ukraine's next president
will provide an unambiguous test of the extent of the Ukrainian authorities'
commitment to implement these standards and build a democratic society
based on free elections and the rule of law;
WHEREAS this election takes place against the backdrop of previous
elections that did not fully meet international standards and of disturbing
trends in the current pre-election environment;
WHEREAS it is the duty of government and public authorities at all levels
to act in a manner consistent with all laws and regulations governing
election procedures and to ensure free and fair elections throughout the
entire country, including preventing activities aimed at undermining the
free exercise of political rights;
WHEREAS a genuinely free and fair election requires a period of political
campaigning conducted in an environment in which neither administrative
action nor violence, intimidation, or detention hinder the parties,
political associations, and the candidates from presenting their views and
qualifications to the citizenry, including organizing supporters, conducting
public meetings and events throughout the country, and enjoying unimpeded
access to television, radio, print, and Internet media on a
non-discriminatory basis;
WHEREAS a genuinely free and fair election requires that citizens be
guaranteed the right and effective opportunity to exercise their civil and
political rights, including the right to vote and the right to seek and
acquire information upon which to make an informed vote, free from
intimidation, undue influence, attempts at vote buying, threats of political
retribution, or other forms of coercion by national or local authorities or
others;
WHEREAS a genuinely free and fair election requires government and public
authorities to ensure that candidates and political parties enjoy equal
treatment before the law and that government resources are not employed
to the advantage of individual candidates or political parties;
WHEREAS a genuinely free and fair election requires the full transparency
of laws and regulations governing elections, multiparty representation on
election commissions, and unobstructed access by candidates, political
parties, and domestic and international observers to all election
procedures, including voting and vote-counting in all areas of the country;
WHEREAS increasing control and manipulation of the media by national
and local officials and others acting at their behest raise grave concerns
regarding the commitment of the Ukrainian authorities to free and fair
elections;
WHEREAS efforts by the national authorities to limit access to international
broadcasting, including Radio Liberty and the Voice of America, represent
an unacceptable infringement on the right of the Ukrainian people to
independent information;
WHEREAS efforts by national and local officials and others acting at their
behest to impose obstacles to free assembly, free speech, and a free and
fair political campaign have taken place in Donetsk, Sumy, and elsewhere in
Ukraine without condemnation or remedial action by the Ukrainian Govern-
ment;
WHEREAS numerous substantial irregularities have taken place in recent
Ukrainian parliamentary by-elections in the Donetsk region and in mayoral
elections in Mukacheve, Romny, and Krasniy Luch; and
WHEREAS the intimidation and violence during the April 18, 2004, mayoral
election in Mukacheve, Ukraine , represent a deliberate attack on the
democratic process: Now, therefore, BE IT
RESOLVED BY THE U.S. HOUSE OF REPRESENTATIVES
(THE SENATE CONCURRING), THAT THE CONGRESS--
(1) acknowledges and welcomes the strong relationship formed between
the United States and Ukraine since the restoration of Ukraine's
independence in 1991;
(2) recognizes that a precondition for the full integration of Ukraine into
the Western community of nations, including as an equal member in
institutions such as the North Atlantic Treaty Organization (NATO), is its
establishment of a genuinely democratic political system;
(3) expresses its strong and continuing support for the efforts of the
Ukrainian people to establish a full democracy, the rule of law, and respect
for human rights in Ukraine ;
(4) urges the Government of Ukraine to guarantee freedom of association
and assembly, including the right of candidates, members of political
parties, and others to freely assemble, to organize and conduct public
events,
and to exercise these and other rights free from intimidation or harassment
by local or national officials or others acting at their behest;
(5) urges the Government of Ukraine to meet its Organization for Security
and Cooperation in Europe (OSCE) commitments on democratic elections
and to address issues previously identified by the Office of Democratic
Institutions and Human Rights (ODIHR) of the OSCE in its final reports on
the 2002 parliamentary elections and the 1999 presidential elections, such
as illegal interference by public authorities in the campaign and a high
degree of bias in the media;
(6) urges the Ukrainian authorities to ensure--
(A) the full transparency of election procedures before, during, and after
the 2004 presidential elections;
(B) free access for Ukrainian and international election observers;
(C) multiparty representation on all election commissions;
(D) unimpeded access by all parties and candidates to print, radio,
television, and Internet media on a non-discriminatory basis;
(E) freedom of candidates, members of opposition parties, and independent
media organizations from intimidation or harassment by government officials
at all levels via selective tax audits and other regulatory procedures, and
in the case of media, license revocations and libel suits, among other
measures;
(F) a transparent process for complaint and appeals through electoral
commissions and within the court system that provides timely and effective
remedies; and
(G) vigorous prosecution of any individual or organization responsible for
violations of election laws or regulations, including the application of
appropriate administrative or criminal penalties;
(7) further calls upon the Government of Ukraine to guarantee election
monitors from the ODIHR, other participating States of the OSCE,
Ukrainian political parties, candidates' representatives, nongovernmental
organizations, and other private institutions and organizations, both
foreign and domestic, unobstructed access to all aspects of the election
process, including unimpeded access to public campaign events, candidates,
news media, voting, and post-election tabulation of results and processing
of election challenges and complaints;
(8) strongly encourages the President to fully employ the diplomatic and
other resources of the Government of the United States to ensure that the
election laws and procedures of Ukraine are faithfully adhered to by all
local and national officials, by others acting at their behest, and by all
candidates and parties, during and subsequent to the presidential campaign
and election-day voting;
(9) strongly encourages the President to clearly communicate to the
Government of Ukraine, to all parties and candidates, and to the people
of Ukraine the high importance attached by the Government of the United
States to this presidential campaign as a central factor in determining the
future relationship between the two countries; and
(10) pledges its enduring support and assistance to the Ukrainian people's
establishment of a fully free and open democratic system, their creation of
a prosperous free market economy, their establishment of a secure
independence and freedom from coercion, and their country's assumption
of its rightful place as a full and equal member of the Western community of
democracies.
Passed the U.S. House of Representatives October 4, 2004. -30-
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FOOTNOTE: For further information contact Orest Deychakiwsky
at the Helsinki Commission in Washington, orest.deychak@mail.house.gov.
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ACTION UKRAINE REPORT-04, No.183: ARTICLE NUMBER TWO
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2. UKRAINE MEMBERSHIP OF NATO IMPORTANT SAYS US
DEPUTY DEFENCE SECRETARY PAUL WOLFOWITZ
Agence France Presse (AFP), Warsaw, Poland, Tue, Oct 5, 2004
WARSAW --- United States Deputy Defence Secretary Paul
Wolfowitz on Tuesday said it was important to expand NATO to
Ukraine, where a pro-Western opposition candidate is tipped to win
presidential elections later this month.
"It is particuliarly important to extend the values of what NATO stands
for to the whole of Europe," Wolfowitz said in a speech at Warsaw
University.
"Our objective of a Europe whole and free will not be complete until
Ukraine is a full pledged member of Europe.
"As President (George W.) Bush said here in Warsaw, we must extend
our hand to Ukraine as Poland has done with such determination," he
added.
Ukraine announced in 2002 that it planned to join NATO and has set
2011 as a target date for starting negotiations on European Union
membership.
But outgoing President Leonid Kuchma has recently sought to move
closer to Russia, stepping back from Kiev's drive for NATO and EU
accession and agreeing to form an economic space with Moscow and
two other major ex-Soviet republics.
His anointed successor, Prime Minister Viktor Yanukovich, is
lagging in opinion polls behind liberal opposition candidate Viktor
Yushchenko, who has promised to pursue Ukraine's Western integration.
But a recent survey showed Ukrainians are highly skeptical that the
election will be honest, with nearly two-thirds saying they believe
the results will be falsified. -30-
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ACTION UKRAINE REPORT-04, No.183: ARTICLE NUMBER THREE
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3. UKRAINE STARTS PRINTING VOTING PAPERS FOR
THE OCTOBER 31 PRESIDENTIAL ELECTION
ITAR-TASS, Kiev, Ukraine, Wed, October 5, 2004
KIEV - It will cost 10.7 million hryvnas ($2 million) to print voting papers
for the Ukrainian presidential election of October 31.
The banknote and coin minting factory and the Ukraine State Printing
House started to print voting papers on Tuesday. Each of them will
print about 20 million voting papers by October 20, Deputy Chairman
of the Ukrainian Central Electoral Commission Yaroslav Davidovich
said.
He said each polling station would receive voting papers with the
number of the electoral district and the polling station so that
they could be used only in a concrete place. The voting papers have
numerous degrees of protection. Central Electoral Commission
Chairman Sergei Kivalov said earlier that the voting papers would be
better protected than the Ukrainian hryvna.
There are 24 candidates in the Ukrainian presidential election
campaign. Sociologists say that Prime Minister Viktor Yanukovich
and Our Ukraine opposition bloc leader Viktor Yushchenko have the
highest chances in the election. -30-
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ACTION UKRAINE REPORT-04, No.183: ARTICLE NUMBER FOUR
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4. UKRAINIAN REGIONAL TV CARRIED SYMPATHETIC 23-MINUTE
DOCUMENTARY ABOUT PRIME MINISTER VIKTOR YANUKOVYCH
Source: Ukrayina TV, Donetsk, in Russian, 5 Oct 04
BBC Monitoring Service,UK, in English, Tue Oct 05, 2004
DONETSK - The Ukrainian regional TV channel Ukrayina has carried a
sympathetic 23-minute documentary about Prime Minister Viktor Yanukovych,
the government-backed candidate in the 31 October presidential election.
The documentary featured Yanukovych himself, his five Lyudmyla and sons
Oleksandr and Viktor telling stories about the prime minister's childhood,
family and career, and showing family photos. Yanukovych himself, dressed
casually, spoke at length about his mother, who died when he was little, and
his difficult childhood. Yanukovych was described as a good family man,
loving father, successful manager and a generally likeable person.
Video showed Yanukovych and his family members speaking, sitting down to
dinner in a big upmarket-looking room, and various footage featuring the
prime minister in his official capacity. No references were made to
Yanukovych's two criminal convictions in the 1970s, which he says were later
quashed. The female presenter briefly interviewed Yanukovych, but no
difficult questions were asked.
The programme was shown immediately after the main evening news bulletin.
Ukrayina TV is based in Donetsk, Yanukovych's home region, and has been
explicitly pro-Yanukovych in its coverage of the election campaign. Audio
and video available. Text of the report will be processed by 2100 gmt 7 Oct
04. -30-
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ACTION UKRAINE REPORT-04, No.183: ARTICLE NUMBER FIVE
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5. CHANGING COURSE-OR SPEED?
Experts caution against tarnishing cooperation with campaign statements
By Volodymyr Soniuk and Serhiy Solodky, The Day
The Day Weekly Digest in English, Kyiv, Ukraine, Tue, Oct 5, 2004
People in Brussels are commenting more emphatically on possible changes in
Ukraine's foreign policy off the record. An anonymous, well-informed source
told Radio Liberty that "Victor Yanukovych's statement about the danger of
joining NATO, if it is truly quoted by the Russian media, runs counter to
Ukraine's course toward Euro-integration." The source further stated that
Ukraine's NATO membership would not inflict any losses on the domestic
military- industrial complex: "NATO doesn't tell its member countries what
kind of weapons they can manufacture or purchase."
As could be expected, Russian experts praised the Ukrainian leadership's new
initiative. Russian Duma MP Andrey Kokoshin stressed, "Premier Viktor
Yanukovych has proclaimed a new doctrine of Russian-Ukrainian relations,
emphasizing the Russian-language issue among other things." Mr. Kokoshin
obviously appreciates Ukraine's unwillingness to join NATO (as he recounted
in detail in a recent interview in The Day).
Former Ukrainian Defense Minister Yevhen Marchuk, one of this country's
most active Euro-Atlantic lobbyists, told the Fifth Ukrainian Television
Channel that Viktor Yanukovych's statement indicates changes in Ukraine's
foreign policy, stressing: "This is the political background, which today is
being
obscured by information and statements that essentially serve as eloquent
proof that something is being cooked up somewhere and that a presidential
candidate has been instructed to make a certain statement, however
differently the situation may be described by others."
A CHANGE OF COURSE IS IMPOSSIBLE
A number of Ukrainian Euro- Atlantic advocates are simply refusing to
comment on the premier's statement; in some cases, bound by their
governmental posts, they cannot afford to tell the truth. Off the record,
most agree that his statement is yet another campaign stunt. An anonymous
cabinet source told The Day, "Even if Ukraine suspends the NATO
rapprochement process, in time it will arrive at the same conclusion-that
there are no alternatives to NATO membership."
Ironically, an international conference on NATO cooperation took place in
Kyiv on September 30, organized by the National Institute for Strategic
Studies. Many political VIPs were in attendance, meaning that the NATO
issue has not degraded to the campaign stunt level.
Volodymyr Horbulin, Chairman of the National Euro-Atlantic Integration
Center, believes that the NATO people will continue working in Ukraine,
specifically to study current bilateral relations, with an eye to raising
this cooperation to a higher level. In his own words, "this work will
continue, statements being made by the so-called technical candidates and
others notwithstanding." He further stated that Ukraine had made
considerable progress on the road to NATO membership, and so "aspiring to
full membership is not a political declaration. Our country has slowed down
the NATO membership process, but it has not changed the course, only
altered the speed."
Oleh Zarubinsky, First Deputy Chairman of the Verkhovna Rada's European
Integration Committee, is convinced that Ukraine's NATO choice is "an
objective priority in the current process of international cooperation in
the security sphere... I am fully aware that there are politicians who feel
more comfortable about becoming integrated with semi-authoritarian countries
and operetta democracies... but this must not be a problem facing Ukraine
and its people."
Mr. Zarubinsky feels sure that Ukraine's integration into NATO will not
damage the domestic military-industrial complex, but will be instrumental in
upgrading it: "It is a fact that the Ukrainian defense industry remains
largely integrated with Russia's..." Mr. Zarubinsky adds that such
coexistence has no future because Russia currently shares a mere 0.3% in
the world's military hi-tech turnover.
Oleh Shamur, Deputy Foreign Minister of Ukraine, noted that any discussions
of Ukraine's NATO membership were "campaign-related...Various statements
that we are hearing these days reflect all those diverse attitudes toward
NATO membership on the part of our political elite and the rest of society."
The Ukrainian diplomat is convinced that avoiding pauses is the most
important aspect of Ukraine-NATO relations: "We mustn't lose the positive
impulse we have had lately, starting with Prague, we must forge ahead."
Those present agreed that everything depends not on short-lived declarations
but on what practical steps Ukraine will take to implement its commitments,
including the main one-holding fair and transparent elections; this approach
would determine Ukraine's progress on the way to NATO membership.
Volodymyr HORBULIN, Presidential National Security Aide, Chairman
of the National Euro-Atlantic Integration Center:
I don't think that Viktor Yanukovych's statement will have any national
security consequences. We all remember that his statement was made at the
Russian Media Club. He spoke as a presidential candidate, not as a prime
minister of Ukraine. As the head of the Ukrainian government, he is
responsible for solving problems relating to the efficiency of the Armed
Forces of Ukraine.
Therefore, I would not attribute the prime minister's statement to any
issues having to do with Ukrainian national security. Of course, his
statement must have attracted our NATO partners' attention - those who
still wish to number Ukraine among the member countries, who are called
upon to uphold security and stability in Europe. Most likely it's a
psychological rather than a military-technological issue.
All things considered, I believe that the presidential campaign should be
considered outside the notion of our cooperation with NATO. We must
shape our relationship with the alliance on a medium-range basis at least -
and on a long-term basis at most. The long-term prospects mean integrating
into NATO, a road our country will travel by all means, regardless of who
becomes the next president in 2004.
Oleksandr DERHACHOV, Institute for Political and Ethnic Studies:
It all depends on whether Mr. Yanukovych wins the presidential race. If
he does, considering his campaign statements, his presidency will result in
Ukraine's temporary isolation, which, however short-lived, will be bad for
this country. I must point out the spontaneous, opportunistic, and
inconsistent nature of his statements, which do not correspond to the
national interests, but are subordinated to the logic of the presidential
campaign.
The prime minister's statement was an attempt to make the best of several
years' worth of brainwashing, convincing people that cooperation with the
West would only harm them, spreading lies about international institutions,
particularly Euro-Atlantic ones, operating in Ukraine. This approach
dominates some of the Ukrainian electorate, those representing the Soviet
subculture. This may serve to encourage some of his supporters, people
who are willing to vote for him anyway. However, this will not provide
presidential candidate Viktor Yanukovych with new supporters.
As for Ukrainian-NATO cooperation in general, it will continue come what
may. After all, the civilized world maintains contacts with what is best
described as outcast countries; there are certain practical matters to
resolve, information has to be exchanged. I mean there is no way to avoid
cooperation. Yet its scope depends on how much the leaders of the countries
under study - in our case those at the helm of Ukraine and our Western
partners - can trust each other. Here little progress can be expected. We
can only count on preserving our achievements, mainly in the technological
domain, and then await a political response.
Heorhy KRIUCHKOV, Chairman, Verkhovna Rada National Security
and Defense Committee:
The prime minister's statement won't affect any of our national security
issues. He simply stated a point of view that exists in our society. This
doesn't change anything in principle. The orientation to Euro-Atlantic
integration remains. Viktor Yanukovych simply voiced his concern about
the military- industrial complex; there are reasons for such fears. Let's
not forget how the West treated our AN-70 project; how the new NATO
countries feel about our alleged supplies of military spare parts to some
countries.
In a word, they are trying to keep us on a tight rein - and this considering
that we manufacture rockets that are no worse than anywhere else in the
world, that our aircraft industry also meets world standards. These
industries are being jeopardized and Viktor Yanukovych said as much. I
would describe his stand as that of a statesman concerned about the national
interests of Ukraine. The West is now concerned only about having Viktor
Yushchenko win the presidential campaign. If he does, we will be West- and
NATO-oriented. If Viktor Yanukovych becomes the next president, our
relations with the West, NATO included, and East will be balanced.
Michel DURE, Director, NATO Information and Documentation Center:
As stated recently by the NATO Secretary General, we attach considerable
importance to the election campaign process in Ukraine. The quality of this
process will certainly affect NATO-Ukrainian relations. I hope that
everything will be fine. We do appreciate the military reform, yet we attach
as much importance to the political aspect. Whatever the election's outcome,
Ukraine will remain Ukraine. It will remain a polity located in Europe. We
will continue to build our relationships with an independent Ukraine, and we
will, of course, take into account Ukraine's wishes with regard to our
cooperation.
We are prepared to cooperate with Ukraine, but many things depend on this
country. NATO is an organization dealing with matters of collective
security. If Ukraine wants to be a security provider, it can embark on the
membership path. Whichever way remains the Ukrainian choice. This must
be clearly understood. We never impose this choice on anyone.
I believe that NATO membership is not a crucial issue in Ukraine. Ukraine,
however, is moving in only one direction, that of NATO membership. Ukraine's
relations are aimed at rapprochement with NATO. This is also very important
for us and we take this into account in our relationships. If Ukraine says
she doesn't want to join NATO, this will be her choice, too. I am convinced
that any such choice will be made independently. You know that certain
countries embarked on an intensified dialogue with NATO, but later refused
membership.
As Director of the NATO Information and Documentation Center, I would like
to stress that achieving national consensus on the Euro-Atlantic issue is a
very important prerequisite. As stated by the conference participants, there
is still work to be done with Ukrainian society. Here explaining, rather
than brainwashing, is necessary because you lack information about NATO.
Serhiy PYROZHKOV, Deputy Secretary, NDSC:
We must keep working the way we've been doing up to now. We must carry
out certain plans. NATO made it clear that our cooperation could be upgraded
after the elections.
Oleh SHAMSHUR, Deputy Foreign Minister:
We have made considerable progress in our relations with NATO, practically
with regard to every important aspect, ranging from military to civil. All
this allows us to seriously consider the possibility of expanding our
cooperation. We will continue to make every effort to implement the
arrangements made during the summit in Istanbul; we will also start
preparing for the foreign ministers' meeting of the Ukraine-NATO Commission.
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LINK: http://www.day.kiev.ua/DIGEST
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ACTION UKRAINE REPORT-04, No.183: ARTICLE NUMBER SIX
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6. "INTERNATIONAL FINANCIAL AGENCIES SHOULD
WATCH THEIR BACKS IN UKRAINE"
OP-ED: by Member of Parliament Yevhen Zhovtyak
The Kyiv Post, Kyiv, Ukraine, Thu, Sep 30, 2004
One month after Moody's Investors Service, the international credit rating
agency, upgraded Ukraine's rating outlook from "stable" to "positive," the
Ukrainian government endorsed a decision that, if fully implemented, will
shatter the country's prospects for fiscal sustainability. The government
declared that it will raise pensions across the board, up to the subsistence
level for disabled persons - that is, Hr 284.
The monthly price tag for the Pension Fund is an additional Hr 1 billion, on
top of the Hr 3 billion which is parceled out to pensioners every month.
Those figures are the net of the transfers from the state budget, which make
up Hr 0.2 billion per month and are basically earmarked to pay the
privileged pensions. But is the Pension Fund well-equipped financially to
meet the new challenges?
Prime Minister Viktor Yanukovych vehemently assured the public that the
Pension Fund's coffers are full of the resources needed to pay the increased
pensions, and that the state budget is always ready to replenish the Pension
Fund's reserves via transfers, both in 2004 and in 2005. Yanukovych also
makes no secret that the pension increase will be financed with extra
privatization proceeds.
I think this is a clear signal to the international financial community,
from international rating agencies to the International Monetary Fund (IMF),
that something has started smelling fishy in Ukraine's fiscal kingdom, even
though Ukraine has just been praised by these organizations for its sound
budgetary policy.
To finance long-term (and actually never-ending) pension liabilities from
those unpredictable, one-off and volatile privatization proceeds is the
worst nightmare which fiscal experts could ever imagine. To constantly
replenish the Pension Fund's depleted reserves through budget transfers is
the second worst option. It doesn't take rocket science to calculate that
the Pension Fund's looming Hr 1 billion monthly deficit will make its
position totally unsustainable as early as the first quarter of 2005. By
that time it will have eaten up its fragile surplus; recourse to the
transfers from the state budget is nothing but a fire-fighting measure.
So how can Ukraine's fiscal outlook in this hostile environment be labeled
as "positive"?
There will be a new president in the first quarter of 2005. Finance Minister
Mykola Azarov and Yanukovych's election team seem to care little that by
that time the Pension Fund will be deeply in the red. Their task until the
end of the year is to mesmerize wavering voters with lousy handouts hedged
with available resources, and to pretend that the prime minister's footsie
with the electorate is financially sound and feasible.
I would like to dispel a number of myths surrounding the pension increase.
Yanukovych, his aid Serhiy Tihipko and Azarov assure the public that the
pension hike has been budgeted in advance in the executive draft budget for
2005 submitted to the parliament on Sept. 15. But these statements have
nothing to do with reality. The draft budget of the Pension Fund as it was
presented to the Rada envisages only a 10 percent increase in its own
revenues, while the September hike makes them skyrocket by as much as
50 percent. This leads to two conclusions that may shed light on the
government's intentions.
First of all, the decision announced by the prime minister on Sept. 20 in
the town of Berdychiv about an abrupt pension increase was either
off-the-cuff or misinterpreted; otherwise, it would have been taken into
account in the 2005 draft budget. Therefore, this draft budget that was
submitted to the Rada is already outdated and invalid, as it does not
incorporate the fiscal challenge generally worth between three and five
percent of Ukraine's GDP.
Another fable is that the Hr 4.5 billion needed to pay increased pensions in
the remaining months of 2004 is encapsulated in the 2004 budget as well. I
would say that, in reality, those resources are not budgeted in a
transparent way; they are rather parked nearby in the government deposits,
free of any concrete appropriation set by the annual budget law.
The Ukrainian government seems to have invented a fiscal management
novelty that one day will be described in public finance manuals under the
heading "The Worst Budgetary Practices": they've devised a way to parcel
out budgetary resources from the national legislature without any budgetary
appropriations whatsoever.
In view of this, I would like to appeal to the IMF experts who last October
produced the updated report on how Ukraine is observing fiscal standards
and codes.
The report (ROSC) praises Ukraine for its advances in adhering to the
pillars of fiscal transparency and accountability. In my view, the ROSC
mission should revisit the country and see the discouraging reverse that the
Ukrainian budgetary system has experienced since last October, and that has
been exacerbated by the government's irresponsible pre-electoral policies.
An unfunded pension increase and denial of the parliament's right to decide
on expenditure policies are only two examples from a pool that is growing
every day.
To name a few more, opposition deputies' requests that the State Affairs
Office (headed by Ihor Bakay) divulge the questionable budgetary
transactions were ignored. Last April the government classified two
resolutions that parcel out capital grants worth Hr 0.7 billion to the
regions. No wonder a lion's share of the taxpayers' money went to the
pro-presidential deputies' electorate. Only after public outrage were those
documents finally declassified.
I have no doubt that a lot of appalling documents, related not only to
fiscal matters, will be declassified after the presidential election. And
counted among the readers of them will be the international financial
organizations and rating agencies. -30-
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Yevhen Zhovtyak is a Rada deputy in the Our Ukraine faction and a member
of the parliament's budget committee. LINK: (http://www.kyivpost.com)
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