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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 210
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, SUNDAY, NOVEMBER 7, 2004

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

1. "CASH CURRENCY INJECTIONS GO SKY HIGH"
By Andry Porokhovshchykov, Kyiv Weekly newspaper
International Newspaper in English and Russian
Evolution Media, Ltd, Acting Editor-In-Chief, Serhiy Shrypnyk
Kyiv, Ukraine, Friday, November 5-12, 2004

2. NATIONAL BANK OF UKRAINE MIGHT SELL ANOTHER
USD 1BN FROM ITS RESERVES IF NEEDED
IntelliNews-Ukraine Today, Kyiv, Ukraine, Fri, Nov 5, 2004

3. UKRAINE'S FINANCE MINISTRY FORECASTS INFLATIONS
OF UP TO 8.5% IN 2004
Ukrainian News Agency, Kyiv, Ukraine, Sat, November 6, 2004

4. CPI INFLATION ACCELERATES 0.9PPS TO 2.2% M/M IN OCT
IntelliNews - Ukraine Today, Kyiv, Ukraine, Fri, November 5, 2004

5. POLAND SET FOR CARMAKER FSO SALE TALKS WITH
UKRAINE'S AUTO MFG AVTOZAZ AS EARLY AS TUESDAY
By Jan Cienski in Warsaw and Tom Warner in Kiev
Financial Times, London, UK, November 6 2004

6. "WHY THE IMF DISLIKES UKRAINE"
There have been more paradoxes than understanding
between Ukraine and the IMF over the years.
By Alina Yakymenko, The Ukrainian magazine
Pickard & Co. Ltd., Ukraine, Kyiv, Ukraine, Issue 5/2004

7. 50,000 SUPPORTERS OF YUSHCHENKO HOLD 'PEOPLE
WON'T BE OVERPOWERED" RALLY IN KYIV
Ukrainian News Agency, Kyiv, Ukraine, Sat, November 6, 2004

8. RUSSIA'S COMMUNIST PARTY LEADER ZYGANOV CALLS
ON UKRAINE'S COMMUNISTS TO VOTE FOR YANUKOVICH
ITAR-TASS, Moscow, Russia, Friday, Nov 5, 2004.

9.UKRAINIAN PRESIDENT, PRIME MINISTER MARK WORLD WAR
II ANNIVERSARY OF KIEV'S LIBERATION FROM GERMANS
Interfax-Ukraine news agency, Kiev, in Russian, 6 Nov 04
BBC Monitoring Service,UK, in English, Sat, Nov 06, 2004

10. ASSOCIATION OF CITIES BLAMES TERRITORIAL AND
DISTRICT ELECTION COMMISSIONS FOR ERRORS IN VOTER LISTS
Ukrainian News Agency, Kyiv, Ukraine, Friday, November 5, 2004

11. VOTING AT 100 UKRAINIAN POLLING STATIONS MAY
DECLARED VOID, MAINLY IN KIEV
ITAR-TASS, Kiev, Ukraine, Fri, Nov 5, 2004

12. "SAMUEL ADAMS REDUX"
Samuel Adams' father was not an anglicized Adamovich (Samyilo).
By Glen Willard, The Ukrainian Observer magazine
The Willard Group, Kyiv, Ukraine, November, 2004

13. RADIO CANADA INTERNATIONAL UKRAINIAN LANGUAGE
PROGRAMMING UNDER THE GUN
CNW Telbec, Montreal, Canada, Thu, November 4, 2004

14. TRYING TO BRIDGE A CENTURIES-OLD CHASM
VATICAN REACHES OUT TO RUSSIAN ORTHODOXY
By Victor L. Simpson, Associated Press
Vatican City, Rome, Italy, Sat, Nov 6, 2004

15. PRELIMINARY REPORT OF THE UCCA INTERNATIONAL
ELECTION OBSERVERS IN THE LUHANSK OBLAST UKRAINE
UCCA, Kyiv, Ukraine, Saturday, November 6, 2004
========================================================
ACTION UKRAINE REPORT-04, No. 210: ARTICLE NUMBER ONE
========================================================
1. "CASH CURRENCY INJECTIONS GO SKY HIGH"

The NBU is prepared to take any necessary steps to eliminate the
current buzz in the hard currency market. The bank is increasing
dollar sales volumes and is not stopping there. Observers believe
that market saturation will happen in two-three weeks.

By Andry Porokhovshchykov, Kyiv Weekly newspaper
International Newspaper in English and Russian
Evolution Media, Ltd, Acting Editor-In-Chief, Serhiy Shrypnyk
Kyiv, Ukraine, Friday, November 5-12, 2004

KYIV - The amount of one billion dollars, which the NBU planned to
sell on the cash market, is apparently not sufficient. Experts believe
that such a sum cannot satisfy the constantly growing demand of
Ukrainians for hard currency.

So far, the central bank is not resisting the development of such a
situation. Information about the NBU's intentions to sell more and
mare cash can be heard regularly in financial circles. "We would
like to inform that the sale of foreign currency on the trading session
has been increased by 40% of the established credit limit," reads
the NBU telegram.

The NBU is trying to quiet down the market at any costs. However,
the only thing the central bank can offer now is to raise its own sales
volumes to commercial banks and control them naturally.

According to bankers' forecasts, the cash market will have to be
saturated with foreign cash for another two-three weeks. It is
presumed that if the needed funds are duly injected into the market,
the latest hype will recede. At the moment, the bank cannot
specify the volume of currency sales required.

The only thing that is known for certain is that this sum will be
in the billions of dollars. Indeed, commercial banks and the NBU
sold US $1.2 bn in October alone. The central bank continuously
controls the import and export of dollars and promises to check
two key regulations, namely observance of a 2% deviation of
the cash rate from the official rate and the deliberate sale of NBU
dollars. Specifically, the bank promised to strictly suppress the
re-sale of the American currency from its reserve to illegal
currency traders.

The NBU already announced the first results of its raids last week.
Violations were discovered at 38 currency exchange outlets of the
97 inspected. It is anticipated that there will be more violators in
the future. -30- [The Action Ukraine Report Monitoring Service]
=======================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER TWO
=======================================================
2. NATIONAL BANK OF UKRAINE MIGHT SELL ANOTHER USD
1BN FROM ITS RESERVES IF NEEDED

IntelliNews-Ukraine Today, Kyiv, Ukraine, Fri, Nov 5, 2004

KYIV - The National Bank of Ukraine (NBU) announced that there
are no reasons to speculate about national currency devaluation. On
the contrary, revaluation is quite possible, says NBU.

Acting head of NBU Arsenii Yatsenuk noted that the nearest social
payments, which will be on Nov 10-11, may spurt the demand for
foreign currency. He underlined that the bank is ready to sell another
USD 1bn from its reserves in case of destabilization.

To remind you, earlier NBU started interventions on the interbank
market and announced its readiness to sell USD 1bn from its reserves
before 2005.

Ukraine faces a solid USD deficit on the foreign cash market due to
excess demand of the population. Many banks introduced restrictions on
USD sales. The Association of Ukrainian Banks considers that the rush
demand was evoked by the latest government decisions, in particular
pension benefit and social payment hikes before the elections -30-
=======================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER THREE
=======================================================
3. UKRAINE'S FINANCE MINISTRY FORECASTS INFLATIONS
OF UP TO 8.5% IN 2004

Ukrainian News Agency, Kyiv, Ukraine, Sat, November 6, 2004

KYIV - The Ministry of Finance forecasts that inflation will be under
the level of 8.5% in 2005. Press service of the ministry informed
Ukrainian News of the relevant statement made by Deputy Finance
Minister Serhii Kharchenko.

In October, the Cabinet of Ministers downgraded its inflation forecasts
for 2004 from 7-7.6 to 8.5% and, according to the Ministry of Finance,
is not going to revise it soon. As Ukrainian News earlier reported, the
January-October inflation tallied 7.9% and in 2003 it was 8.2%.

The government had earlier forecasted 2004 inflation within the limits of
5.8-6.3% (December to December of last year), and the average annual
inflation rate at the level of 6.7%. The Economy Ministry forecasts 6.2%
inflation for 2005. -30- [The Action Ukraine Report Monitoring Service]
========================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER FOUR
Your comments about the Report are always welcome
========================================================
4. CPI INFLATION ACCELERATES 0.9PPS TO 2.2% M/M IN OCT

IntelliNews - Ukraine Today, Kyiv, Ukraine, Fri, November 5, 2004

KYIV - According to State Statistics Committee, CPI inflation made up
2.2% m/m in October against 1.3% in September. Consumer prices rose
7.9% ytd over Jan-Oct. In October, food prices rose by 3% m/m, non-
food prices - 0.4%, services - 0.8%. In September, EconMin raised the
inflation forecast for full-2004 from 6.3% to 7-7.6%. In October,
government worsened its outlook further from 7-7.6% to 8.5%.

IntelliNews Comment: Worth noting, FinMin Nikolai Azarov previously
forecasted CPI inflation in October, November and December to make
up 1.3-1.5% m/m on average, while this year eop inflation - 7-7.5%.
Such optimistic target is hardly feasible, in our view, minding the latest
economic situation in the state (high social benefits, rush demand on the
FX cash market, presidential vote, and slowdown in industrial growth).

In our view, even NBU's 9% forecast might be surpassed. One should
take into account non-market pricing regulation policy of the government,
namely strict food and service price limits. Still, inflation is hardly
likely to stay within 1% on total in Nov-Dec. -30-
-------------------------------------------------------------------------
FOOTNOTE: It is important to remember that the man in Ukraine who
wears many hats, Sergiy Tyhipko, who serves as chairman of the campaign
for president of Viktor Yanukovych, the government's candidate, also serves
as chairman of the National Bank of Ukraine ((NBU). Mr. Tyhipko is on
temporary leave from the National Bank but most analysts understand
what and who is driving the bank's policies.

Your editor heard Mr. Tyhipko say in Kyiv recently that inflation was at
7.5% and was going down to 5%. Most financial analysts believe just the
opposite. Inflation has been at 7.5% and is on the way quickly to 10%.

The authorities are doing everything possible, through tough talk and Soviet
type price controls, to hold down food prices until the presidential
election is over. They are also trying to convince people inflation will be
going down to 5% and not up to 10%, which would eat up much of the
value of the increase in pension payments made to millions of people in
Ukraine by the government during the past few weeks. The same efforts
are being made to hold the value of the hryvna constant when otherwise
the value would be falling according to financial analysts.

Too many pensioners do not realize that inflation is "like a thief in the
night" and that what the government has given them in pension increases
will soon be eaten up by higher prices and they will not really have any
increase in their purchasing power in the end. What the government giveth
the government quickly taketh away. [EDITOR]
=======================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER FIVE
========================================================
5. POLAND SET FOR CARMAKER FSO SALE TALKS WITH
UKRAINE'S AUTO MFG AVTOZAZ AS EARLY AS TUESDAY

By Jan Cienski in Warsaw and Tom Warner in Kiev
Financial Times, London, UK, November 6 2004

KIEV - The Polish government is prepared to begin negotiating the
sale of floundering carmaker FSO with Ukraine's AvtoZAZ as early
as Tuesday, according to Jacek Piechota, Poland's deputy economy
minister. The investment would be one of the most significant by a
Ukrainian company in the European Union.

A competing offer from the UK's MG Rover Group and China's
Shanghai Automotive Industry Corporation (SAIC) has not advanced
beyond a letter of interest, Mr Piechota told the FT. "FSO is in such
a condition that it really cannot wait," he said. "The only negotiator is
AvtoZAZ."

AvtoZAZ has no plans to co-operate with Rover or any other potential
bidders. "We hope we will be alone," said Iryna Mihaleva, spokeswoman
for UkrAvto, the holding company controlling AvtoZAZ.

FSO, which was Poland's premier carmaker in communist times, is on
the verge of bankruptcy. With a capacity of 250,000 cars a year, the
Warsaw factory makes less than a quarter of that, almost all destined
for export to Ukraine. AvtoZAZ sold about 40,000 cars based on
bodies from FSO in the first nine months of 2004 and hopes to sell
80,000 in 2005.

The government sold FSO to Daewoo Motor in 1995, but the Korean
carmaker was in financial trouble and by 2001 it was bankrupt. Since
then FSO has seen its domestic sales collapse.

The Polish government has been frantically looking for a saviour for
FSO, hoping to preserve 2,300 jobs. Many companies have expressed
interest in a possible joint venture, but only Rover and AvtoZAZ have
talked seriously and only the Ukrainians have put down money.

Yesterday Rover said it "continued to be interested" in FSO but that
its main focus was on winning Chinese government approval for its
joint venture with SAIC.

The Ukrainian company has been buying up FSO's debt from six Polish
banks, which were owed about 285m zlotys ($85.2m). AvtoZAZ has
been paying about 20 per cent of the face value of the debt, which is
secured by FSO's car factory.

There is still some question about $570m in FSO debts that the government
contends were written off by Daewoo last year, but which Daewoo's UK
subsidiary says are still owing. A person close to the discussions said the
debt meant it was unclear who had the right to sell the shares. -30-
(Additional reporting by James Mackintosh)
=======================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER SIX
Additional names for the distribution list are always welcome
========================================================
6. "WHY THE IMF DISLIKES UKRAINE"
There have been more paradoxes than understanding
between Ukraine and the IMF over the years.

By Alina Yakymenko, The Ukrainian magazine
Pickard & Co. Ltd., Ukraine, Kyiv, Ukraine, Issue 5/2004

October 2004 marks a very important month in Ukraine's political and
economic life - primarily in terms of Ukrainian-IMF co-operation. This
October is marked by the presidential campaign and a meeting of the IMF
Board of Governors to determine whether the Fund will renew the stand-by
programme, or whether they will deny Ukraine all support. Why should IMF
dislike Ukraine's declared impetuous economic growth? Answers to this
question would be very long and complicated.

The fact remains, however, that the history of Ukrainian-IMF relations
leaves one faced with more paradoxes than things one can understand. Few
are aware that Pavlo Lazarenko's Cabinet was the biggest recipient of IMF
financial aid, and that the reformist Premier Viktor Yushchenko received
no money.

IMF AND THE WORLD
Let us start by making a brief digression into history. The IMF was born
July 22, 1944, established [along with the International Bank for
Reconstruction and Development] at the UN Monetary and Financial
Conference [at Bretton Woods, New Hampshire]. The Fund's de jure
objective consisted of forming a global financial system capable of
regulating economic relationships amongst the member countries to allow
quickly and effectively the suppression of crises by providing financial aid
to its members.

In other words, IMF was founded as a world mutual aid fund of sorts, so its
members could be sure to have something to protect them against a rainy day.

Such aid was granted on two conditions. Firstly, one had to be an IMF member
and contribute certain sums in the national currency [subscription quotas]
to be eligible for IMF loans. Secondly (very much like business relations in
general), each such loan would be given on certain terms, the observance of
which, in the IMF experts' opinion, would guarantee repayment. The obvious
question is, who is in a position to determine such terms and conditions in
regard to a given country, and who is entitled to approve them? It is done
by teams of experts visiting the intended country and studying their
economic parameters (acting like world-wide auditors of sorts).

Yet financial aid if provided is approved by the IMF Governors representing
the interests of the Fund's largest donators. The thing is that the IMF's
actual status, as a credit union over and above all nations and superpowers,
actually matches the ordinary share-capital pattern; he that has the largest
number of shares has the largest number of votes. In other words, IMF
shareholder votes are allocated pro rata to their shares in the IMF
authorised fund.

On the one hand, this approach is generally practised in the business world;
he that pays orders the tune, which means that those providing the major
contributions are in a position to decide whether or not to grant a loan to
a given country, and on what terms. On the other hand, third-world IMF
countries rebel now and then, demanding that the rules of the game be made
more democratic. They believe that the United States, being the most
generous IMF donor, is in a position to dictate these rules. Precisely
because of this argument the Americans have abstained, for the past decade,
from insisting that their IMF representative be assigned the leading post at
the Fund.

Recently, the German Horst Kohler was replaced by the former
Spanish Finance Minister Rodrigo Rato as IMF Managing Director (and the
Spanish replacement does not have a degree in economics, by the way). Be
that as it may, countries others than those with major interests in the IMF
are not likely to obtain any concessions from the principal "shareholders".
The most the African leaders can expect would be an increase in the number
of the new Managing Director's African advisers.

Kohler's retirement boosted talk about IMF's inadequacy in meeting 21st
century challenges, which boiled down to the opinion that something had to
be done about the IMF, although in most cases opinions on precisely what
had to be done turned out to be polarised. One thing is apparent. The IMF's
golden age is now history, dating back to the late 1970s when the OPEC
countries raised world costs four-fold during yet another oil crisis, and
when the IMF set up an oil department meant to cushion the blow for the
most impoverished countries.

As it was, all those oil-barrel discounts were turned into debts payable to
the IMF. In the next decade, its experts proceeded to determine the
dynamics of third-world economic and political progress. It was also then
that the first signs of premature euphoria made themselves obvious,
causing a number of IMF projects to fail in Latin America.

Whereas the IMF shock therapy method proved rather effective in Chile and
Poland, it had negative rather than positive results in Venezuela, Peru, and
Bolivia. After IMF experts tried to fix up Bolivia's industries, they simply
gave up the ghost and the country won the notorious prestige of a drug
runner. Likewise, the IMF failed to help Mexico get out of its financial
crisis in 1994, and their further endeavours in that country served to
accumulate a tangible public debt ($17 billion).

IMF reached the peak of faulty performance when a series of financial
cataclysms shook Asia in 1997, Brazil and Russia in 1998, and Argentina
and Turkey in 2001, on the threshold of the third millennium. Interestingly,
Argentina avoided greater losses simply because it refused to comply with
the IMF recommendations. In other words, the Fund's economic recipes
began to fail in the 1990s.
IMF AND UKRAINE
Ukraine has survived without IMF loans since 2001, when it received funds
just once. Regular IMF tranches stopped coming in September 1999. Most
officials had learned to treat this phenomenon with optimism, saying we
don't
need new debts (or the old ones, for that matter). Were they right? On the
one hand, this approach looks rather amateurish. It is common knowledge that
IMF loans are granted for longer terms and at lower interest rates, compared
to the commercial loan market. However, the point is that the IMF is an
organization established by a majority of countries which still trust its
experts to assess the situation in a given polity, especially if it is a
country little known elsewhere in the world.

Therefore, the very fact of co-operation with the IMF is a green light for
investors, and vice versa. In fact, comparatively small IMF loans have paved
the way for sizeable foreign inland investments, serving as prerequisites of
co-operation with other financial institutions. Putting an end to such
crediting would cause the receiving country to lose face, as, in a way, was
the case with Ukraine.

Let me stress here and now that such crediting can mean both regular
pecuniary injections (as per the IMF programme effective until 2001) and
loans given as requested (e.g., the good old stand-by pattern, currently
subject to prolonged debate). In other words, refusing to co-operate with
the IMF would seem a very risky step to take, something even the world's
leading countries would be hard put to afford.

Hence the next question: What caused Ukraine and the IMF to drift apart?
Some will recall that IMF financing stopped in September 1999, after the
National Bank's hard currency reserve turned out to be overstated, giving
rise to yet another scandal. The conflict was settled after Ukraine had
returned to the IMF almost $100 million worth of loans taken in what was
admitted as an improper manner. Yet the issue is far more complicated than
meets the eye.

For reasons still to be ascertained, the IMF would loan rather large sums to
Premier Pavlo Lazarenko, although the IMF mission taking part in the
negotiations had to be aware of the illicit transactions, among other
reasons, because their scope was such that it could not have possibly passed
unnoticed by special services in various countries. Nor did the IMF refuse
loans to Premier Lazarenko's successor Valery Pustovoitenko, who proved to
be anything but a reformer, rather a typical Soviet economic administrator.

A paradox that can be explained in several ways. To begin with, the IMF
issued loans at the time due to failures rather than achievements in the
Ukrainian economy, so as to help avoid crises. Secondly, Ukraine did agree
to certain terms and conditions when receiving every such loan. As mentioned
previously, the Board of Governors determine the rules of the game when
issuing a loan to a given country. The IMF BG is made up of people
representing the world's most developed countries. Not surprisingly, their
terms and conditions often betray affiliation to transnational corporations.

A closer look at the IMF memorandum signed by Premier Valery Pustovoitenko
and NBU Governor Viktor Yushchenko in 1998 reveals several peculiar aspects.
Thus, one of the crediting conditions was the placement of the arterial
pipelines under an international consortium's control, involving Ukrainian
and foreign companies - most probably the result of lobbying for the benefit
of certain interested foreign companies. True, this clause was never
implemented. Moreover, Ukraine had finally chosen Russia as the partner for
setting up the gas consortium at the turn of the third millennium,
practically ignoring the interests of all the other foreign companies. This,
too, could have brought the IMF crediting to a halt.

What made the IMF stop sending advance stand-by tranches under a special
loan agreement worth $411.6 million, or the one worth $607 million, for a
term of 12 months? Only recently we learned from statements made by the
IMF and the Ukrainian Cabinet that the contracting parties had settled all
disputable economic and political issues.

There are several possible explanations. The simplest and most banal one is
that the IMF bureaucrats insist on their forecast reading that Ukraine will
have a considerably lower GDP next year: 4% against this year's 12%. The
Ministry of Finance claims the GDP will show 8.6%, twice as much as
anticipated by the IMF. Allegedly, this is why Ukraine can expect no further
loans. Beginning in 2000, the IMF has been transforming into an
international consulting firm of sorts, and its people look very offended
when their expert recommendations are treated other than as axioms. Another
explanation is that the IMF refused loans to Ukraine for political reasons,
meaning that they want to know what kind of president and government will
be there to receive their loans. We will learn before long which of the
explanations is true. [The Action Ukraine Report Monitoring Service]
----------------------------------------------------------------------
The Ukrainian, Terry Pickard, Managing Editor, Pickard & Co., Ltd,
Ukraine; Kiev; http://www.theukrainian.kiev.ua, lana@pickard.kiev.ua.
=======================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER SEVEN
Suggested articles for publication in the Report are always welcome
========================================================
7. 50,000 SUPPORTERS OF YUSHCHENKO HOLD 'PEOPLE
WON'T BE OVERPOWERED" RALLY IN KYIV

Ukrainian News Agency, Kyiv, Ukraine, Sat, November 6, 2004

KYIV - Some 50,000 supporters of Our Ukraine Coalition leader and
presidential candidate Viktor Yuschenko have joined the "People Won't
Be Overpowered" rally on Independence Square in Kyiv.

In columns they marched from Mykhailo Hrushevskyi Monument, Sofiivska,
Mykhailivska and Kontraktova Squares to Independence Square. The
demonstrators carried orange flags and almost everyone had an orange
band on the head and orange balloons in the hands. Young people were
handing out orange ribbons to passing driver on Khreschatyk Street.
The rally opened with a short performance of Plach Yeremii band, singers
Maria Burmaka and Taras Petrynenko.

After the concert Yuschenko, Socialist Party leader Oleksandr Moroz,
Batkivschyna party leader Yulia Tymoshenko, and Yuschenko's chief
campaign manager Oleksandr Zinchenko came to the stage and then the
Ukrainian anthem was played over the square.

Yuschenko made a speech in which he said that the Ukrainian people
became different after October 31 and thanked everyone who came to
vote on the election day.

Yuschenko criticized the Central Election Commission for being too
slow in counting the voting results and said that the Presidential
Administration has adjusted the election returns.

The candidate said that the people in power are trying to split the people
so that they could be easily controlled, and declared that he himself never
divided Ukrainians according to their ethnic origin, religion or language.
When he was the prime minister, Yuschenko continued, his government
cancelled illegal privileges for separate enterprises and barter operations,
which helped to pay out back pensions and wages and to generate larger
budget revenues.

He accused the current government of begin sluggish in the conditions
when gasoline and food prices are soaring. "This government is a crisis
master," he added.

Yuschenko said he is an advocate of prolonging moratorium on land sale
until 2007 in order to prevent farmers from selling their lands for nothing.
The candidate thanked everyone for their support and when his finished
his speech, the demonstrators released orange balloons into the air.

His security men were constantly guarding Yuschenko while he was on the
stage and used binoculars to observe the buildings around the square.

Moroz took the floor after Yuschenko and said that 95 of 98 members
of the SPU political council voted to back Yuschenko in the run-off.

Moroz asked the people who came to the rally to explain their friends and
families that there is a strong necessity to make a right choice in the
second round of elections, and added that then they will see a "live" and,
what is more, "sober President" not from TV screens but with their own eyes.

Speaking after Moroz, Tymoshenko announced that according to vote
counting conducted by Yuschenko HQ, he received more than 50% of votes.
She called on the people to not let vote rigging and to come to Yuschenko
HQ and sign up as election observers.

"There is no other important task but to defend the Motherland," she said.
Tymoshenko also said that there is much orange color in the streets last
days with girls wearing orange tops and orange ribbons on people and cars.

She urged to make the organ color popular and to tie orange ribbons in the
trees, fencing and clothes for everyone to see what candidate they should
vote for and so that Prime Minister Viktor Yanukovych had orange dreams.
In his speech, Zinchenko stated that the Ukrainian people need changes and
called on everyone to come to vote on November 21.

While the politicians were on the stage, they have been interrupted many
times by people who chanted "Yuschenko!" The meeting wound up with
the national anthem and then the rally turned into a concert that will
feature Mandry and Okean Elzy bands.

As Ukrainian News earlier reported, the People's Power coalition holds the
"People Won't Be Overpowered" rally across Ukraine on November 6.
The aim of the rally is to explain to the Ukrainian people what is necessary
to be done to prevent falsification of the expected second round of the
Ukrainian presidential elections. -30- [Action Ukraine Monitoring Service]
========================================================
ACTION UKRAINE REPORT-04, No. 210: ARTICLE NUMBER EIGHT
Letters to the editor are always welcome
========================================================
8. RUSSIA'S COMMUNIST PARTY LEADER ZYGANOV CALLS
ON UKRAINE'S COMMUNISTS TO VOTE FOR YANUKOVICH

ITAR-TASS, Moscow, Russia, Friday, Nov 5, 2004.

MOSCOW, November 5 (Itar-Tass) - Russia's Communist party
leader Gennady Zyuganov has called on Communists of Ukraine not
to allow the victory of a "representative of pro-Western forces" in the
second round of presidential elections.

"Today, one must realise that the coming of pro-Western, pro-
American proteges to power in Ukraine will put off prospects for
reunification of our people for a long time - it threatens to unity of the
Ukrainian state, unity of the people of Ukraine," he said in a published
statement on Friday. Ukraine's Communists "should show political wisdom
- commitment to the vital, strategic interests of working people", he said.

Zyuganov earlier called on Ukrainian Communists to give their votes
to Viktor Yanukovich who led in the first round with fractions of
percent over his contender, the opposition's candidate Viktor
Yushchenko.

However, a Communist party plenum decided not to give votes to any
of the candidates. Meanwhile, Zyuganov said he did not rule out that
Ukrainian Communists would reconsider their decision.

He said on Ekho Moskvy radio he had information that the Communist
party's representatives held consultations with Yanukovich in Kiev.

"They have agreed on preparing a joint programme of leading the
republic out of the economic crisis, and Yanukovich has confirmed
that he is ready to implement several provisions of the programme of
Communists," Zyuganov said. -30- [Action Ukraine Monitoring Service]
========================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER NINE
========================================================
9. UKRAINIAN PRESIDENT, PRIME MINISTER MARK WORLD WAR
II ANNIVERSARY OF KIEV'S LIBERATION FROM GERMANS

Interfax-Ukraine news agency, Kiev, in Russian, 6 Nov 04
BBC Monitoring Service,UK, in English, Sat, Nov 06, 2004

KIEV - Ukrainian leaders laid flowers at the Grave of the Unknown
Soldier in Kiev today to mark the 61st anniversary of Kiev's liberation from
German occupation,

The ceremony was attended by Ukrainian President Leonid Kuchma, Prime
Minister Viktor Yanukovych, first deputy parliamentary speaker Adam
Martynyuk, members of the Cabinet of Ministers, members of parliament and
World War II veterans.

About 50 representatives of different branches of the armed forces marched
past the monument down the Glory Alley. Salvoes were fired by an honour
guard from their personal weapons to the sounds of the national anthem to
commemorate the anniversary of the capital's liberation. [Passage omitted:
historical background to the Soviet army's operation to liberate Kiev on
6 November 1943]

[Ukraine held a military parade on 28 October to mark a similar event - the
60th anniversary of Ukraine's liberation from Nazi occupation. The
festivities and parade then were attended by Russian President Vladimir
Putin, whose visit the Ukrainian opposition described as election
campaigning for the Ukrainian prime minister and presidential candidate,
Viktor Yanukovych.] -30- [The Action Ukraine Report Monitoring Service]
========================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER TEN
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10. ASSOCIATION OF CITIES BLAMES TERRITORIAL AND
DISTRICT ELECTION COMMISSIONS FOR ERRORS IN VOTER LISTS

Ukrainian News Agency, Kyiv, Ukraine, Friday, November 5, 2004

KYIV - The Association of Cities and Communities of Ukraine believes
that the blame for the errors that were found in voter lists during the
October 31 Ukrainian presidential election lies with territorial and
district election commissions. Kyiv's Mayor Oleksandr Omelchenko, who
is the chairman of the association, disclosed this to journalists.
Omelchenko cited a decision that the association's board made.

According to him, local authorities provided error-free voter lists. "The
association of Ukrainian Cities has confirmed today that all the errors in
the surnames, names, and patronymics as well as addresses were made by
the CEC's local implementers and structures. Local self-government organs
at the level of housing exploitation commissions and the passport
authorities provided accurate, just, and objective data," Omelchenko said.
According to him, the CEC should investigate the source of the errors in
voter lists and announce the results of the investigation.

As Ukrainian News earlier reported, the Ukrainian Presidential
Administration has expressed the belief that the poor preparation of voter
lists for this year's Ukrainian presidential elections was due exclusively
to the negligence of election commissions and the fact that Ukrainians are
not pedantic.

The Central Electoral Commission has criticized local authorities for poor
compilation of the voter lists for the presidential elections. Meanwhile,
the Committee of Voters of Ukraine has accused the officials responsible
for compiling voter of deliberately overlooking the errors in them. -30-
========================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER ELEVEN
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11. VOTING AT 100 UKRAINIAN POLLING STATIONS MAY
DECLARED VOID, MAINLY IN KIEV

ITAR-TASS, Kiev, Ukraine, Fri, Nov 5, 2004

KIEV - Ukrainian courts are considering the possibility of declaring
void the returns from the October 31 presidential elections at 100
polling stations, the chief of the Prosecutor-General's Office press-
service, Sergei Rudenko said at a news briefing.

Electoral legislation violations are said to have been most frequent
in the capital Kiev. Rudenko said protocols from some electoral
commissions had not been signed by all of the commissions' members.
In three cases the signature of the commission's chief was absent
from the protocol and the unused ballot papers had failed to be
canceled properly.

The top two presidential candidates, according to preliminary CEC
statistics based on 97.67 percent of the ballot papers counted,
received practically the same number of votes.

The election runoff has been scheduled for November 21, as none of
the candidates has gained more than 50 percent of the votes.
----------------------------------------------------------------------
FOOTNOTE: Information from international election observers
do not indicate at all that electoral legislation violations were most
frequent in Kiev. Of course the authorities would decide that was
the case as the voters in Kyiv strongly supported Viktor Yushchenko.
========================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER TWELVE
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12. "SAMUEL ADAMS REDUX"
Samuel Adams' father was not an anglicized Adamovich (Samyilo).

By Glen Willard, The Ukrainian Observer magazine
The Willard Group, Kyiv, Ukraine, November, 2004

A number of Readers noticed the UOs faux pas in our article attributing
Ukrainian heritage to one of the United States' founding fathers (Samuel
Adams: Ukraine's Contribution to American Liberty, September 2004).

Samuel Adams' father was not an anglicized Adamovich (Samyilo).

Volodymyr Senchenko, our wise and well-read academician (the Professor),
was misled by an article he read that he gave credence to without seeking
further attribution. I reviewed the article when it was print ready, had a
"that's interesting " reflection, a momentary hesitation, but with knowledge
of the Professor's normal accuracy and dedication to facts, passed on it.
So, we at the UO are somewhat red-faced, but must accept the
embarrassment for our blunder.

We thank our many Readers who were quick to point out the Adams family's
long New England heritage and English ancestry. The e-mails came fast and
furious for several days. Some were quite detailed and some critical. All
were polite. We appreciate all correspondence - on any material that appears
in our magazine.

In our December issue, we'll use our lesson to ferret out some of the other
Ukrainian and Russian claims to history which reflect more fiction than
fact, and seem to abound. Does everyone know the real story about Leon
Trotsky? He was assassinated in Mexico in the late 1940s. However, during
his long, mysterious absence from the Soviet Union while hiding from Josef
Stalin, he at times played baseball for the Cleveland Indians of the
American League. This less than well-known "history" is described in The
Secret Life of Leon Trotsky. Just Google "Leon Trotsky, baseball" on the
Internet.

Know a historical lemon related to Ukrainians or Russians? Pass it on to us.
E-mail me at glen@twg.com.ua. We will try to use some of the best in our
article. -30- (Glen Willard is editor-in-chief of The Ukrainian Observer,
Kyiv.) [LINK: http://www.ukrainian-observer.com]
---------------------------------------------------------------------------
FOOTNOTE: It was the readers of The Action Ukraine Report who
first realized the article in The Ukrainian Observer about Samuel Adams
having Ukrainian heritage was not correct. This was after The Action
Ukraine Report published the article on Samuel Adams. The article
had been in the public domain for almost thirty days by that time. The
Action Ukraine Report quickly passed on the many comments from its
readers to The Ukrainian Observer. We also apologize again for
publishing an article that was not correct. [EDITOR]
========================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER THIRTEEN
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========================================================
13. RADIO CANADA INTERNATIONAL UKRAINIAN LANGUAGE
PROGRAMMING UNDER THE GUN

CNW Telbec, Montreal, Canada, Thu, November 4, 2004

MONTREAL - The Ukrainian Canadian Congress, Quebec Provincial
Council, representing 38 Ukrainian community organizations is profoundly
disturbed by evidence that Radio Canada International is proceeding with
plans to further decrease its Ukrainian-language programming at the end
of November 2004.

There would have been only 2 half-hour weekly programs as of October
31, 2004, down from 2 half-hour programs daily, which was a cut (in
2001) from 2 one-hour programs daily.

Following letters and petitions (thousands of signatures were gathered)
and appeals to the Government of Canada the date was moved to
November 30, 2004, to cover the presidential elections in Ukraine
up to the run-off vote on November 21.

The elections were plagued by strong-arm tactics by the government
authorities of Ukraine promoting the candidate selected by them.
International observers have cited many instances of electoral fraud
and interference marring the campaign and the elections themselves.
All 60 Canadian observers noted gross irregularities.

Canada's example is a beacon of hope for the people of Ukraine. Its
one million-strong Ukrainian community has shown that it is possible
to be fully integrated and involved in a pluralistic democracy while
retaining the Ukrainian language, culture and traditions.

Ukraine needs to hear a Canadian voice speaking in Ukrainian,
sharing the Canadian vision and experience to help build such a
society in Ukraine. The security of Europe and the world depends
upon the growth of such a society.

Canada showed foresight when it became the first western nation to
recognize Ukraine's independence in 1991. This is most definitely
not a time to be cutting back on Radio Canada International
programming to Ukraine. If anything it is a time to increase such
programming.

A major component of the strong-arm tactics of the government
authorities in Ukraine is the closing of media outlets to the
opposition candidate. The media voice for pluralistic democracy
coming from Canada encourages and motivates the people to continue
the struggle for this in Ukraine. Ukrainian language broadcasting on
Radio Canada International must go on full force. -30-
---------------------------------------------------------------------
For further information: Very Rev. Dr. Ihor G. Kutash, President,
(514) 276-2477, (514) 591-5329
http://www.cnw.ca/fr/releases/archive/November2004/04/c9013.html
========================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER FOURTEEN
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========================================================
14. TRYING TO BRIDGE A CENTURIES-OLD CHASM
VATICAN REACHES OUT TO RUSSIAN ORTHODOXY

By Victor L. Simpson, Associated Press
Vatican City, Rome, Italy, Sat, Nov 6, 2004

VATICAN CITY - Call it icon diplomacy.

Just as the visit of a U.S. table tennis team to China -- "Ping-Pong
diplomacy" -- helped open the way for a visit by President Nixon in
1972, the Vatican is hoping that a series of small steps can break
down barriers with the Russian Orthodox Church and Orthodoxy
elsewhere, bringing Pope John Paul II to Russia.

The Vatican recently returned a Russian icon revered by the
country's Orthodox community and plans to send back the relics of
two Orthodox saints taken from Constantinople as plunder by
Crusaders eight centuries ago.

The Vatican has few illusions that Christianity's final split into
Western and Eastern branches in the 11th century is easily repaired.
Both sides recognize that the power of the papacy was a principal
reason for the rupture, and remains so.

Added to that are the new rivalries arising from the rebirth of the
Roman Catholic Church in the heavily Orthodox lands of the former
Soviet Union, a religious revival spurred in part by the Polish-born
pontiff's successful efforts to bring down communism. Accusations
that the Vatican is seeking souls among the Orthodox -- as well as
attempts to regain Catholic churches in Ukraine given to the
Orthodox by the communists -- have strained relations.

Still, the Vatican has hoped for enough goodwill to enable the pope
to make a groundbreaking visit to Moscow to demonstrate his
commitment to eventual reconciliation. No pontiff has ever set foot
in Russia, but John Paul, 84, would accept an invitation -- even
though he suffers from Parkinson's disease and crippling knee and
hip ailments.

There are signs of movement by both sides, putting aside the chilly
moment when Catholic priests were being refused visas and the
Vatican was accusing Moscow of waging a "despicable" anti-Catholic
campaign.

In August, the Vatican sent a revered icon back to Moscow that was
smuggled to the West after the 1917 Russian Revolution. It hung in
the pope's private chapel, and aides said he had long awaited the
opportune moment to return it.

"I believe that your decision to return the icon shows your sincere
desire to overcome the difficulties existing between our churches,"
Russian Orthodox Patriarch Alexy II wrote John Paul.

Last month, to mark John Paul's 26th anniversary as pontiff, a
Russian military band serenaded the pope at the Vatican.

And this month, the Vatican is returning to world Orthodoxy's
honorary headquarters in Istanbul the bones of two saints seized by
the Crusaders about 800 years ago and kept in St. Peter's Basilica
in Rome. -30- [The Action Ukraine Report Monitoring Service]
=======================================================
ACTION UKRAINE REPORT-04, No.210: ARTICLE NUMBER FIFTEEN
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15. PRELIMINARY REPORT OF THE UCCA INTERNATIONAL
ELECTION OBSERVERS IN THE LUHANSK OBLAST UKRAINE

UCCA, Kyiv, Ukraine, Saturday, November 6, 2004

We, as official international election observers appointed by the Ukrainian
Congress Committee of America (UCCA) and registered by the Central
Election Commission of Ukraine, file the following preliminary report based
on documented observations in Luhansk Oblast of Ukraine.
BACKGROUND:
The UCCA group of officially registered election observers support Ukraines
commitment to OSCE standards for free and fair elections, that accurately
reflect the will of the electorate. UCCA does not support any candidate,
party or election block.
A delegation of 12 observers traveled to Luhansk Oblast in Ukraine to report
on the adherence to international election standards in the province. This
delegation of observers had the opportunity to visit all electoral
territories in Luhansk Oblast prior to Election Day (E-Day). The delegation
remained in the province over a ten day period, commencing on 23 October
2004 and concluding on 1 November 2004. On E-Day, 31 October 2004,
all twelve electoral territories (Numbers 105 to 116) were again visited to
observe the election process taking place.
Prior to E-Day, teams met with representatives of the four major
presidential candidates (Moroz, Symonenko, Yanukovych & Yushchenko),
members of various Precinct Election Commissions (PEC) and Territorial
Election Commissions (TEC), political party representatives, authorized
candidate representatives, official (domestic) observers appointed by
candidates, other official international observer groups, members of the
mass media and local citizens.
PURPOSE & SCOPE:
This report has two main purpose
- Firstly, to provide a synopsis of observations conducted in the twelve
electoral territories of Luhansk Oblast, with a special emphasis on E-Day
occurrences; and
- Secondly, to produce recommendations based on selected major violations.
There were some positive aspects to the election process in Luhansk Oblast.
Nevertheless, consistent with Article 70(5) of the Law of Ukraine On the
Elections of the President of Ukraine (the Election Law), this report is
basing its recommendations solely on observed violations - so that they may
be properly recorded in the public domain and hopefully actions taken so
that they can be avoided in the future.
GENERAL OBSERVATIONS:
The delegation had occasion to observe serious campaign irregularities in
the pre-election period. In the main, these irregularities can be
characterized as the absence of a level playing field that would help ensure
fair elections. Many of these reflect preferential treatment based on an
abuse of state or administrative authority. We list below some of the major
irregularities in the pre-election period:
- Numerous media violations whereby all candidates were not given equal
access to unbiased media coverage;
- The unlawful use of public administrative resources to support the
government candidate;
- Pressure by the campaign of the government candidate on selected voters
to support their candidate and/or to abstain from supporting opposition
candidates;
- The use of public authorities to obstruct and/or disrupt the pre-election
campaigns of opposition candidates;
- Use of inflammatory campaign material contrary to the law; and
- The absence of accuracy in the voters lists.
In addition, the current framework for determining the composition of PECs
and TECs, as outlined in the Election Law, does not ensure unbiased
treatment of all candidates. Major candidates have the ability to stack
these commissions with their supporters through other secondary candidates
and/or remove unwanted commission members. Since the decisions of these
commissions are conducted on the basis of a majority of votes, this leaves
ample opportunity to manipulate outcomes. The potential for systemic abuse
of this sort is high in our opinion; however, that is not to say that all
major candidates participated in such manipulation.
SPECIFIC OBSERVATIONS:
1. Bribery, Intimidation or Harassment of Voters & Campaign Workers -
Article 157 of the Criminal Code & Article 64(6) of the Election Law
- Expulsion of a student from the Luhansk Agrarian University for
campaigning for an opposition candidate (Yushchenko). Ref: TEC 105 -
PEC 41
- Students alleging that they advised that they would be expelled from
school if they did not support and vote for the government candidate.
Students offered bribes that they would get increased marks for
co-operating. Ref: TEC 108 - PEC 14; TEC 109 - PEC 1
- Claims by campaign workers that they would be physically harmed, their
homes destroyed or their jobs lost if they did not vote for the government
candidate. Ref: TEC 109 - PEC 1
- Voters alleging they were offered 100 hryvnia to vote for a candidate
(Yanukovych). TEC 107 - PEC 32
- PEC member told to add new voters onto voters list without proper TEC
or court documentation. Ref: TEC 115 - PEC 64
- Students alleging they were advised that if they vote for a candidate
(Yanukovych), they would get two months of free boarding. Ref: TEC
105 - PEC 41
- Voter complaints of the town's mayor insisting citizens vote for
government candidate. Ref: TEC 111 - PEC 92, TEC 115 - PEC 7
- PEC member advising voter which candidate to vote for. Ref: TEC 115 -
PEC 91
- Employees alleging employer advising them how to vote and then
subsequently monitoring the attendance of employees at a PEC to see if
they voted. Ref: TEC 113 - PEC 68 & 69
- Voters seen receiving free beer on the premises of 2 PEC's of the same
TEC. Ref: TEC 105 - PEC 63 & 64
2. Voter List Violations - Articles 31, 32, 33 & 34 of the Election Law
- Variety of inaccuracies, including listing of deceased voters, multiple
entry of voters and voters missing off of voter's lists. Ref: TEC 105 -
PEC 62, 65, 66, 67 & 77; TEC 106 - PEC 4, 41, 59, 61, 62, 63, 65 &77;
TEC 108 - PEC 14; TEC 116 - 32 & 36; TEC 109 - PEC 1, 16, & 40;
TEC 111 - PEC 17; TEC 113 - PEC 10
- Over 700 students voters added to voter's list within 2 days of elections
and told to vote for a candidate (Yanukovych). Ref: TEC 108 - PEC 14
- Numerous irregularities regarding voters lists with either unnumbered
pages, unnumbered voters, and/or improperly signed and sealed
documentation. Ref: TEC 108 - PEC 36, 79 & 80; TEC 108 - PEC 82
- Voters list missing from PEC premises. Ref: TEC 105 - PEC 69
- Over 400 voters added to voters list without proper documentation and
authorization. Ref. TEC 111 - PEC 86
- Voters allowed to vote more than once or with falsified identification.
Ref: TEC 105 - PEC 45; TEC 106 - PEC 63.
- Changes to voters list made in pencil then erased on E-Day. Ref: TEC
115 - PEC 7
3. Ballot Box Violations - Articles 70(5), 74(3) & 75(10) of the Election
Law
- Small mobile ballot returned to PEC in damaged condition. Ref: TEC 109 -
PEC 35
- Improperly sealed ballot boxes & ballot boxes improperly stored. Ref:
TEC 108 - PEC 79; TEC 106 - PEC 81
- Small mobile ballot boxes not turned upside down when not in use, as per
requirements. Ref: TEC 108 - PEC 77
- Small mobile ballot boxes missing control sheet as per requirements.
Ref: TEC 110 - PEC 26; TEC 111- PEC 4; TEC 114 - PEC 12
- Ballot boxes not in clear view of PEC members during voting hours as per
requirements. Ref: TEC 110 - PEC 33 & 40
- Unsealed ballot box stored in adjacent area and not in clear view of PEC
members. Ref: TEC 106 - PEC 81; TEC 114 - PEC 32
- Voting area improperly set up so that ballot boxes not in clear view of
PEC members and/or official observers. Ref: TEC 110 - PEC 33 & 40;
TEC 115 - PEC 91; TEC 112 - PEC 4
4. Impeding the rights of International Observers & Media Representatives -
Articles 28(9), 69 & 70 of the Election Law
- Official international observers not allowed on the premises of a PEC.
Ref: TEC 108 - PEC 36; TEC 115 - PEC 205; TEC 112 - PEC 8; TEC
109 - PEC 94
- Media representative not allowed on the premises of a PEC. Ref: 109 -
PEC 94
- Authorized candidate representative (from candidate Mykola Hrabar)
denied access to PEC. Ref: TEC 109 - PEC 1
- International observer denied access to 'absentee voters list'. Ref: TEC
108 - PEC79
- Authorized candidate representative (from candidate Mykola Hrabar
assaulted at TEC premises. Ref: TEC 113
- International observers refused permission to accompany mobile ballot
boxes. Ref: TEC 105 - PEC 60, 61, 66, 67; TEC 116 - PEC 59
- International observer refused right to film proceedings at TEC. Ref:
TEC 112
- International observers monitored, threatened and followed by car. Ref:
TEC 111 - PEC 5
5. Ballot & Voting Premises Violations - Article 28(10), 74, 76(4), 78 of
the Election Law
- Ballots were pre-marked for candidate Yanukovych. Ref: TEC 105 - PEC
40; TEC 111 - PEC 17
- Voting premises too small according to requirements. Ref: TEC 105 - PEC
6, 7, 41 & 62; TEC 108 - PEC 16; TEC 111- PEC 16, 19 & 92; TEC 109
- PEC 1
- Improper ballots used with no PEC number indicated on them, contrary to
requirements. Ref: TEC 114 - PEC 1; TEC 115 - PEC 38
- Improper storage and handling of ballots. Ref: TEC 108 - PEC 36; TEC
111 - PEC 87; TEC 113 - PEC 21
- Militia members improperly stationed in voting premises. Ref. TEC 105 -
PEC 7, 40 & 41; TEC 108 - PEC 36, 79 & 84; TEC 109 - PEC 40; TEC
111 - PEC
5; TEC 113 - PEC 49; TEC 114 - PEC 22; TEC 116 - PEC 59
- Illegal campaigning on E-Day. Ref: TEC 109 - PEC 40; TEC 111 - PEC
17 & 92; TEC 112 - PEC 7; TEC 123 - PEC 23
- Improper counting of ballots. Ref: TEC 107 - PEC 35; TEC 111 - PEC 1
- Candidates biographical information not posted as required. Ref: TEC
115 - PEC 149; TEC 111 - PEC 87
- More than one person in voting booth at a time. Ref: TEC 115 - PEC 149,
TEC 111 - PEC 19
6. PEC &TEC Violations - Articles 78, 79, 81 & 82 of the Election Law
- TEC's dismissed several PEC members appointed by the opposition in latter
stages of pre-election campaign. TEC 109 - PEC 1, 10, 16, 35 & 40; TEC
110 - PEC 85; TEC 115 - PEC 132
- Official vote count protocols signed by PEC members in advance of
completion. Ref: TEC 108, TEC 109 - PEC 16
- TEC members did not perform required audit duties regarding submitted
official protocols from PEC's. Ref: TEC 108; TEC 109, TEC 115 & others
- PEC official protocols and accompanying documents were received at TEC in
either a tattered or opened state. Ref: TEC 109; TEC 111; TEC 115 &
others
- PEC official protocols not properly completed and/or sealed when received
at TEC. Ref: TEC 115 - PEC 38, 68 & 166
- PEC official protocols improperly "corrected" at TEC rather than
referring back to the PEC. Ref: TEC 108; TEC109; TEC 111; TEC 115
& others
CONCLUSIONS:
The UCCA Luhansk Oblast delegation has concluded that the elections in
the areas under observation were not universal, fair, secret, free or
transparent. In addition, many PEC's and TEC's had Election Law violations
ranging from relatively minor administrative errors to major violations of
Ukraine's Election Law and Criminal Code.
Such violations bolster the belief of Ukraine's citizens that the results of
the election were pre-determined. The local electorate lacks confidence in
the current system and they fear repercussions if they report any threats
they experienced or if they report even minor transgressions of the Election
Law.
As a result, there is an urgent need for all parties to act on the
violations noted above in order to restore confidence in the system and to
show violators the consequences of their actions. Similarly, party
officials, authorized candidate representatives and local observers need to
be more vigilant in their reporting of violations and do so in an proactive
manner, when possible, to help prevent repeated violations.
It also became apparent that many PEC and TEC members were not fully
conversant with the Election Law. As a result, many PEC and TEC members
need additional training. Also, the general electorate would benefit from a
greater awareness of their rights under the Election Law. This would help
eliminate voter list errors, as well as make them less susceptible to
threats and intimidation.
Finally, since there is a lack of a fair and free press in Luhansk Oblast,
as in many areas of Ukraine, the UCCA Luhansk Oblast delegation
recommends that domestic and foreign news organizations initiate intensive
reporting on this election in order to spread the truth and consequently
discourage election violations.
RECOMMENDATIONS:
In accordance with the findings of this report, the UCCA Luhansk Oblast
delegation makes the following recommendations:
1. Thorough prosecution of all major Election Law and Criminal Code
violations in a timely manner;
2. Additional training of PEC and TEC members as to the requirements
of the Election Law and their obligations therein;
3. Reform of the Election Law regarding the composition of PEC's and
TEC's to avoid biased or manipulated representation;
4. An extensive public education program on voter rights and on ballot
secrecy;
5. Greater rights of guaranteed access for all official observers (domestic
and international) and journalists, especially pertaining to jails, health
institutions and special voting precincts;
6. Special protection under the Election Law for voters, authorized
candidate representatives and domestic observers who report violations;
7. Guaranteed equal access to mass media for all candidates;
8. The establishment of monitoring agents under the Election Law with the
authority to issue automatic fines and/or other penalties whenever state
authorities provide any form of support for any candidate;
9. Similarly granting authority to such monitoring agents to issue automatic
fines and/or other penalties for state authorities who harass candidates or
impede legitimate campaign activities;
10. Greater access to voters lists for the general public prior to elections
and public education on the need to check the accuracy of voters lists;
11. Amend the Election Law to incorporate procedural simplicity to
correct voters lists; and
12. The establishment of a National Voter Registry and an independent
governing agency charged with maintaining the registry and operating at
arm's length from the government.
Note: This report is also available in Ukrainian; however, only the English
version is official -30- [The Action Ukraine Report Monitoring Service]
========================================================
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