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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"

IS THE OSCE STILL ALIVE?
"It should examine as well the brutal campaign organized by Kremlin
political operators in Ukraine, using KGB-type techniques and
hundreds of millions in Russian petrodollars, to try to elect a president
friendly toward Moscow. OSCE election-monitoring groups have
politely criticized both exercises, with mainly symbolic effects."
[article one]

"THE ACTION UKRAINE REPORT" Year 04, Number 211
The Action Ukraine Coalition (AUC), Washington, D.C.
Ukrainian Federation of America (UFA), Huntingdon Valley, PA
morganw@patriot.net, ArtUkraine.com@starpower.net (ARTUIS)
Washington, D.C.; Kyiv, Ukraine, MONDAY, NOVEMBER 8, 2004

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

1. "IS THE OSCE STILL ALIVE?"
By Vladimir Socor, The Wall Street Journal Europe
Europe, Weekend of November 5-7, 2004

2. "BEAR MARKET UNCERTAINTY UNTIL THE RUNOFF?"
Until November 21, the Cabinet of Ministers and NBU
have promised to forestall price increases
By Serhiy Rudenko, 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

3 'UKRAINE'S POSITION BETWEEN EAST AND WEST' SUBJECT
OF NEWS CONFERENCE IN WASHINGTON, NOV. 8
Eduard Pruetnik, Chief of Staff, PM Viktor Yanukovych of Ukraine
To: Assignment and International desks, Daybook Editor
News Advisory: USNewsWire, Thursday, Nov. 4, 2004

4. PROTEST UKRAINIAN GOVERNMENT PRESS CONFERENCE
IN WASHINGTON, D.C., MONDAY, NOVEMBER 8
Eduard Pruetnik, Chief of Staff and Policy Advisor to Prime
Minister Yanukovych in Washington at National Press Club
Wolodymyr Derzko in Toronto, Canada
Oksana Bashuk Hepburn in Ottawa, Canada
CANADA, Saturday, November 6, 2004

5. UKRAINIAN COMPANY DESIGNS AUTOMATIC PISTOL
FOR GERMAN ARMS PRODUCER
Interfax-Ukraine news agency, Kiev, in Russian, 5 Nov 04
BBC Monitoring Service, UK, in English, Fri, Nov 05, 2004

6. INTEREST ON PRIVATE BANK DEPOSITS WILL NOT BE
TAXED IN 2005 IN UKRAINE
Interfax-Ukraine news agency, Kiev, in Russian, 6 Nov 04
BBC Monitoring Service, UK, in English, Sat, Nov 06, 2004

7. 74.79% OF VOTERS VOTE IN ALL 225 CONSTITUENCIES
DURING PRESIDENTIAL ELECTION
Ukrainian News, Mykola Savchuk, Kyiv, Ukraine, Sun, Nov. 7, 2004

8. PROGRESSIVE SOCIALIST PARTY MARK ANNIVERSARY OF OCT
REVOLUTION AND MARCH TO THE UNITED STATES EMBASSY
Urge unity with Russia and Belarus, No to NATO, No to Yushchenko
Ukrainian News Agency, Kyiv, Ukraine, Sun, November 7, 2004

9. RADA SPEAKER ASKING KIVALOV TO STRENGTHEN CEC'S
CONTROL OVER EXPECTED SECOND ROUND OF PRES ELECTION
Ukrainian News Agency, Kyiv, Ukraine, Mon, November 8, 2004

10. KYIVANS' ON THE ELECTION, CYNICISM AND ANGER
By Oksana Tsisyk, Kyiv Post Staff Writer
Kyiv Post, Kyiv, Ukraine, Thursday, Nov 4, 2004

11. INTERNATIONAL JOURNALISTS BACK EMBATTLED
COLLEAGUES IN UKRAINE
International Journalists Network (IJNET)
International Center for Journalists; Washington, D.C., Fri, Nov 05, 2004

12. "UKRAINE'S EMBATTLED CHANNEL 5 STAYS ON THE AIR"
Supporters of Yanukovych are accused of repressing the media
FEATURE ARTICLE: By Catherine Fitzpatrick
Radio Free Europe/Radio Liberty (RFE/RL)
Prague, Czech Republic, Sunday, 07 November 2004

13. NEW HUNGARIAN PARTY OF UKRAINE FORMS ALLIANCE
WITH VIKTOR YUSHCHENKO
Kossuth Radio, Budapest, Hungary, in Hungarian, 7 Nov 04
BBC Monitoring Service, UK, in English, Sun, November 7, 2004

14. FORMER PRIME MINISTER ANATOLII KINAKH AND HIS PIEU
PARTY DECIDE TO SUPPORT VIKTOR YUSHCHENKO
Party of Industrialists and Entrepreneurs (PIEU)
Ukrainian News Service, Kyiv, Ukraine, Monday, Nov 8, 2004
========================================================
ACTION UKRAINE REPORT-04, No. 211: ARTICLE NUMBER ONE
========================================================
1. "IS THE OSCE STILL ALIVE?"

"It should examine as well the brutal campaign organized by Kremlin
political operators in Ukraine, using KGB-type techniques and
hundreds of millions in Russian petrodollars, to try to elect a president
friendly toward Moscow. OSCE election-monitoring groups have
politely criticized both exercises, with mainly symbolic effects."

By Vladimir Socor, The Wall Street Journal Europe
Europe, Weekend of November 5-7, 2004

Intensive discussions are under way inside the Organization for Security and
Cooperation in Europe (OSCE) on the decisions and documents to be adopted
at its year-end conference. Holding a budgetary sword of Damocles over the
OSCE's head, Russia threatens to veto other countries' funding of core OSCE
programs and activities, unless the organization starts "reforming" itself
as per Moscow's proposals.

With a half-dozen post-Soviet authoritarian governments in tow, Russia wants
to shift the OSCE's resources and priorities, weaken the organization's
democracy and human-rights dimension, and expand the OSCE's
politico-military and security dimension so as to undermine NATO's role and
Western security initiatives in Europe and Eurasia. Traditionally, the
OSCE's pro-democracy activities are only minimally dependent on Russia's
consent (except on Russia's own territory); but the organization's
activities in the security sphere fully depend on Russian consent, and are
in some cases shaped by Russia. This is why Moscow wants to reduce the
OSCE's democracy dimension and increase the security dimension, and uses
its budget-vetoing power to achieve those political goals.

The OSCE would be better placed to resist this blackmail if it spoke openly
about it, instead of hushing it up. Another closely-kept OSCE secret is its
fear of demise through irrelevance and redundancy; a fear that has led the
organization year after year into concessions to the Kremlin and its
proteges on such matters as civil rights in Belarus, the partition of
Moldova, pressures on Georgia, conventional arms control, and other
security and democracy issues.

This course is illogical and can be changed. Standing up for democracy and
Euro-Atlantic security in the post-Soviet area would demonstrate that the
OSCE still has a raison d'etre. Conversely, sacrificing those values for the
sake of "consensus" at any cost with the autocrats would only demonstrate
the irrelevance and redundancy that the OSCE is anxious to avoid.

At its coming year-end conference, the OSCE should unambiguously condemn
the cynical electoral farce just staged by Belarusan dictator Alyaksandr
Lukashenka. It should examine as well the brutal campaign organized by
Kremlin political operators in Ukraine, using KGB-type techniques and
hundreds of millions in Russian petrodollars, to try to elect a president
friendly toward Moscow. OSCE election-monitoring groups have politely
criticized both exercises, with mainly symbolic effects.

Most recently, Moscow has enlisted several post-Soviet governments to form
Russian-led election-monitoring groups and contradict the OSCE's election
assessments in former Soviet states. This Russian policy is not in itself
new, but turned proactive and brazenly aggressive in the last two months.

Vladimir Rushaylo, former Secretary of Russia's Security Council and
police general, now CIS Executive Secretary, recently led Russian/CIS
election-monitoring delegations that described both the Belarus and
first-round Ukraine elections as democratic, free and fair. So did Russia's
Duma and Ministry of Foreign Affairs.

The problems of Georgia and Moldova remain as heretofore near the top
of the European security and diplomatic agenda. Those problems involve
unresolved conflicts, unlawful presence of Russian forces, and seizure of
parts of those countries' territories. An OSCE that wants to avoid
"irrelevance and redundancy" must try to uphold its own earlier demands
regarding Russian troop withdrawal from those countries.

It seems, however, that Russia has already successfully ruled out from the
main final conference document, the Political Declaration, as well as from
the regional statements, any reference to Russia's 1999 Commitments to
withdraw its troops from Georgia and Moldova.

Indeed, Moscow has by now managed with OSCE cooperation to eviscerate
its 1999 Commitments on troop-withdrawal from Georgia and Moldova.
Deadlines were lifted, unconditional obligations were rephrased into mere
"intentions," conditions were inserted that had not initially been
stipulated, transfers of Russian troops and heavy arms to Russian-led
secessionist forces were tolerated, and Russian "peacekeepers" were tacitly
exempted from the requirement to withdraw.

Not surprisingly, therefore, in the runup to the OSCE's year-end conference,
senior Russian officials are insisting on an open-ended military presence in
Georgia and Moldova. The OSCE is going along with Russia's demand to drop
even a simple factual reference to the OSCE's 1999 documents. Washington
and Brussels are giving in to Russia on these and other issues for the sake
of "saving" the consensus-based OSCE and having a "successful" conference.

Thus, the OSCE's effectiveness as an institution can be seen descending two
rungs below that of the United Nations. While the U.N. is also incapable of
enforcing its own resolutions, it can at least cite them ritualistically
year after year, and they form a generally accepted reference material. The
OSCE, however, has changed its own key resolutions under Kremlin duress;
and is no longer able even to cite those resolutions without Russia's
consent, let alone to call for their implementation in countries targeted by
Moscow.

The OSCE's Border Monitoring Operation (BMO) on the Georgia-Russia
border is one of the organization's rare accomplishments. Staffed by unarmed
military officers from many countries (including Russians), the BMO is
watching the Chechen, Ingush, and Daghestani sectors of that border from
the Georgian side. The BMO is crucial to shielding Georgia from Russian
accusations that Chechen and international "terrorists" are operating out of
Georgian territory. Its on-site reporting does not substantiate those
accusations, thus disproving them implicitly. Moreover, the BMO has
confirmed some of the violations of Georgian airspace by Russian military
planes, as reported by Georgia, though invariably denied by Russia.

Moscow has recently threatened to veto the continuation of the BMO and
thus to force its termination as of December 31, possibly under the guise of
cutting its funding. Although the threat appears designed to intimidate
Georgia and raise the OSCE's anxiety level in the runup to the year-end
conference, it seems unlikely that Moscow would risk a confrontation with
Western countries by vetoing the BMO. More likely, Russia would ultimately
accept a time-limited continuation of the BMO and, in return, demand
concessions or a colluding silence on other security and democracy issues at
the year-end conference. -30- [The Action Ukraine Monitoring Service]
---------------------------------------------------------------------
Mr. Socor is a senior fellow of the Washington-based Jamestown
Foundation, publishers of the Eurasia Daily Monitor.
=======================================================
ACTION UKRAINE REPORT-04, No.211: ARTICLE NUMBER TWO
=======================================================
2. "BEAR MARKET UNCERTAINTY UNTIL THE RUNOFF?"
Until November 21, the Cabinet of Ministers and NBU
have promised to forestall price increases

By Serhiy Rudenko, 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 manager of Premier Viktor Yanukovych's election campaign
headquarters Serhiy Tihipko has named stabilization of the cash currency
market and holding back price growth as the main objectives of the
headquarters, the government and the National Bank of Ukraine (NBU)
for the period leading up to the presidential election run-off.

"During this time, we need to knock down the prices of meat and meat
products and eliminate the recent hard currency hype, since there are
no grounds for a high dollar rate," he stated. In this manner, Tihipko
confirmed that at least until November 21 the authorities will use
administrative methods for regulation of the Ukrainian economy.

Tihipko is convinced that the 40% which Yanukovych received in the
presidential election reflects the people's assessment of the actions of
the current government, particularly in the social sphere. This refers to
the pension rates, which Tihipko believes were properly appreciated
by the left-wing electorate. Yanukovych's team is hoping to gain the
support of these voters in the run-off as well.

Naturally, Tihipko has not named the price of such support. How-
ever, every voter has already had a chance to see the consequences
of additional injection into the money supply on the market. For
instance, the price increases in shops, drugstores, and currency
exchange points are among the effects.

Specifically, medicines grew in price by at least 5%, imported home
appliances - by 20% and the dollar rate on the "resurrected black
markets" in some regions of Ukraine reached Hr 7.00/US$1.00.

Reacting to this, the government remembered the long-forgotten
Soviet word "speculation" and promised to fight "speculators." In its
turn, the NBU decided in September to sell on the interbank market
up to US $50-100 mn in cash to flood the dollar currency market and
reduce the dollar rate.

At the same time, the central bank introduced a 2% limitation on the
deviation in the buy/sell rate of cash currency from the official rate.
Despite such efforts, this still did not solve the problem as the
shortage of cash dollars at currency exchanges outlets persists.

Tihipko predicts that the cash currency market will be stabilized as
a result of NBU interventions by selling cash currency to banks.
"The NBU must constantly perform injections of cash currency."
If the bank manages to hold such a position for 7-10 days, prices
will decline," the banker stated optimistically.

The two months during which the government tried to manage the
economy "manually" has already had its negative impact on the
business climate. Entrepreneurs have actually become hostage to
the government's social programs.

Managers of commercial companies were forced not only to curb
price growth for goods and services, but were also proposed to
pay taxes several months ahead.

Meanwhile, uncertainty of the results of the presidential election
has forced trading volumes on the Ukrainian stock market sharply
downward. At the PFTS, the trading volumes fell on November
1 by almost 213 times in comparison to volumes in previous trading
on October 29.

In other words, the trading volume that Monday after the election
was 0.5% of what it was on Friday. And it appears as though the
stock market, as well as goods and financial markets, will preserve
their motionless state at these levels right up until the run off. In
short, November 21 will be decisive not only for the teams of
Yanukovych and Yushchenko, but also for those who ensure GDP
growth in the country. -30- [Action Ukraine Monitoring Service]
=====================================================
ACTION UKRAINE REPORT-04, No.211: ARTICLE NUMBER THREE
=====================================================
3. 'UKRAINE'S POSITION BETWEEN EAST AND WEST' SUBJECT
OF NEWS CONFERENCE IN WASHINGTON, NOV. 8
Eduard Pruetnik, Chief of Staff, PM Viktor Yanukovych of Ukraine

To: Assignment and International desks, Daybook Editor
News Advisory: USNewsWire, Thursday, Nov. 4, 2004

WASHINGTON - Eduard Pruetnik, chief of staff and policy advisor to
Prime Minister Viktor Yanukovych of Ukraine, will hold an Afternoon
Newsmaker news conference on Monday, Nov. 8, at 2 p.m. EST at the
National Press Club, Zenger Room, 529 14th St., N.W., in Washington,
D.C. Pruetnik will discuss "Ukraine's Position Between East and West."
--------------------------------------------------------------------
Contact: Peter Hickman, 301-530-1210 or 202-662-7540 or
pjhickman@hotmail.com, for the National Press Club; or Iryna Berzhveka
of the Embassy of Ukraine, 202-349-2934; http://www.usnewswire.com/
=======================================================
ACTION UKRAINE REPORT-04, No.211: ARTICLE NUMBER FOUR
=======================================================
4. PROTEST UKRAINIAN GOVERNMENT PRESS CONFERENCE
IN WASHINGTON, D.C., MONDAY, NOVEMBER 8
Eduard Pruetnik, Chief of Staff and Policy Advisor to Prime
Minister Yanukovych in Washington at National Press Club

Wolodymyr Derzko in Toronto, Canada
Oksana Bashuk Hepburn in Ottawa, Canada
CANADA, Saturday, November 6, 2004

CANADA - ACTION ITEM: Please forward this Action Item to
community leaders and all interested individuals who are concerned
about the long-term faith of Ukraine.

Protest Ukrainian government press Conference in Washington,
Nov 8, as a sign of Objection to the actions of the current regime
by holding a protest march outside the event..

OVERVIEW:
The West should take a hard line again the current regime in Ukraine
for their massive falsification of first round voting results of the next
president of Ukraine by boycotting and protesting all events and
appearances organized by all official representatives of the Ukrainian
government such as the appearance of Eduard Pruetnik, chief of staff
and policy advisor to Prime Minister Viktor Yanukovych of Ukraine in
Washington on Monday Nov 8, 2004. -30-
------------------------------------------------------------------------
CONTACTS: W. Derzko: wderzko@pathcom.com; Oksana Bashuk
Hepburn: oksanabh@sympatico.ca.
=======================================================
ACTION UKRAINE REPORT-04, No.211: ARTICLE NUMBER FIVE
Your comments about the Report are always welcome
========================================================
5. UKRAINIAN COMPANY DESIGNS AUTOMATIC PISTOL
FOR GERMAN ARMS PRODUCER

Interfax-Ukraine news agency, Kiev, in Russian, 5 Nov 04
BBC Monitoring Service, UK, in English, Fri, Nov 05, 2004

KIEV - A Ukrainian company has designed an automatic pistol for the
Schmeisser International German arms producer. The pistol, called
Schmeisser AWT MP03, has an improved barrel that does not overheat,
has no recoil and needs no oiling. Schmeisser director Werner Resch said
firearms designed in Ukraine could be sold to Russia, South America and
Asia. The following is the text of a report by Interfax-Ukraine news agency:

KIEV -- New firearms designed in Ukraine will allow it to re-equip
the Ukrainian armed forces, which are undergoing reform now, according
to world standards. It also has good marketing opportunities, experts of
the world weapon market say.

A 10-year contract between Schmeisser International and the Institute of
Automated Systems of the Ukrainian Academy of Sciences envisages the
development of promising firearms for the Ukrainian army, the director of
Schmeisser International, Werner Resch, said in an interview with
Interfax-Ukraine.

"The Ukrainian armed forces should reform its structure and organization in
the following decade and will become professional - based on contracts,"
he said.

Our primary task is to make sure that they are re-equipped with new
firearms, which correspond to modern standards, in the next decade. We
think that the AK-74 assault rifle, which is used in the Ukrainian armed
forces now should be replaced with the assault rifle of a professional
international standard, Resch said. We are talking about a new automatic
pistol, a new sniper rifle and a new assault rifle, he specified.

Apart from the Ukrainian army, new firearms could be sold to the Russian
law-enforcement agencies and have a good chance of being sold to other
markets, Resch said. Among them are South American countries, including
Brazil, Argentina and Mexico, and Asian markets, primarily China, Indonesia
and the Philippines, Resch said. According to him, estimated sales could
reach 100,000 firearms a year.

Developers of new firearms take into account the experience of recent
campaigns in Afghanistan and Iraq, Resch said. They use technology that
solves problems encountered during these campaigns.

The Ukrainian Institute of Automated Systems has already completed a
contract with Schmeisser to develop a new automatic pistol, Schmeisser
AWT MP03, that has a 9 mm calibre PARA. Experts say that the cost
of developing a firearm of this class on the world market is estimated at
30m euros.

The production of prototypes and their tests are being discussed at the
moment. The partners in this project are the Artem plant (Kiev), the
state-owned Scientific Centre for Precision Machine-Building (Kiev), the
state company Scientific and Technical Centre for Artillery Systems and
Firearms (Kiev) and the Pivdenmash plant (Dnipropetrovsk).

The tests and production of the first series of pistols are to be completed
by the end of 2005, and mass production is to begin in 2007.

The new Schmeisser AWT MP03 has an improved barrel that can fire up to
47,000 shots and does not overheat. Among the main features of the new
pistol are the absence of recoil and no need for oiling. -30-
=====================================================
ACTION UKRAINE REPORT-04, No.211: ARTICLE NUMBER SIX
Additional names for the distribution list are always welcome
=====================================================
6. INTEREST ON PRIVATE BANK DEPOSITS WILL NOT BE
TAXED IN 2005 IN UKRAINE

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

KIEV - The Ukrainian government and the National Bank of Ukraine
[NBU] have made a joint decision not to tax private citizens' bank
interest in 2005, the first deputy prime minister and finance minister,
Mykola Azarov, has said.

"This is being done in order to stimulate the growth of our people's bank
deposits. There is a very good trend and we want to support it because
there are about 40bn hryvnyas in their bank accounts," Mykola Azarov
said on Friday [5 November] in an interview with the Ukrainian UT1
channel's "Business World" programme.

He said that the National Bank of Ukraine agreed to compensate for the
ensuing decrease in the state budget revenue by allocating additional funds
from its own revenues, as the National Bank's budget surplus goes to the
state budget.

"The budget will not suffer. I think we will support the NBU's effort to
strengthen our banking system. This is in the government's best interest,"
the first deputy prime minister said. He added that according to preliminary
estimates, the National Bank's compensation will total approximately 280m
hryvnyas.

In Ukraine, private citizens' bank deposits have grown by 39.1 per cent
since the beginning of this year, and as of 1 November amounted to 45.1bn
hryvnyas, including those in the national currency - by 37.6 per cent,
amounting to 26bn hryvnyas. -30- [Action Ukraine Monitoring Service]
=======================================================
ACTION UKRAINE REPORT-04, No.211: ARTICLE NUMBER SEVEN
Suggested articles for publication in the Report are always welcome
=======================================================
7. 74.79% OF VOTERS VOTE IN ALL 225 CONSTITUENCIES
DURING PRESIDENTIAL ELECTION

Ukrainian News, Mykola Savchuk, Kyiv, Ukraine, Sat, Nov 7, 2004

KYIV - 74.79% of voters had voted in 225 constituencies that were
created for the Ukrainian presidential elections when polls closed at
20:00 on October 31. This was disclosed in an official statement from the
Central Election Commission, the text of which Ukrainian News obtained.

According to the law "On Presidential Elections", elections are considered
to be completed with participation of over 50% of voters. Region (range
of constituencies)

Number of ballots as of 20:00
Ukraine: 27,878,094 74.79%
(1) Crimea (1-10) 1,030,363 65.97%
(2) Vinnytsia region (11-18) 1,025,823 75.54%
(3) Volyn region (19-23) 646,558 82.52%
(4) Dnipropetrovsk region (24-40) 1,967,450 70.29%
(5) Donetsk region (41-63) 2,879,197 78.12%
(6) Zhytomyr region (64-69) 824,932 77.08%
(7) Zakarpattia region (70-75) 611,224 66.11%
(8) Zaporizhia region (76-84) 1,061,547 69.66%
(9) Ivano-Frankivsk region (85-90) 851,507 79.79%
(10) Kyiv region (91-99) 1,119,005 77.59%
(11) Kirovohrad region (100-104) 626,425 73.59%
(12) Luhansk region (105-116) 1,467,561 75.495
(13) Lviv region (117-128) 1,643,931 80.68%
(14) Mykolaiv region (129-134) 680,604 71.44%
(15) Odesa region (135-146) 1,180,230 64.84%
(16) Poltava region (147-154) 987,573 78.01%
(17) Rivne region (155-159) 706,314 81.12%
(18) Sumy region (160-165) 810,128 80.58 %
(19) Ternopil region (166-170) 719,194 84.90%
(20) Kharkiv region (171-184) 1,645,453 71.62%
(21) Kherson region (185-189) 620,585 68.71%
(22) Khmelnytskyi region (190-196) 872,984 79.44%
(23) Cherkasy region (197-203) 831,498 75.47%
(24) Chernivtsi region (204-207) 501,564 71.82%
(25) Chernihiv region (208-213) 758,435 78.67%
(26) Kyiv (214-223) 1,590,553 75.87%
(27) Sevastopol (224-225) 217,456 71.62%

The CEC recently disclosed that 74.36% of voters voted in all 225
constituencies in the presidential elections. At the same time, the
commission has changed the number of voters.

As Ukrainian News earlier reported, voting in this year's Ukrainian
presidential elections started at 08:00 and ended at 20:00 on October
31. Twenty-four presidential candidates participated in the election.

9,647 people are working in the 225 constituencies created for the
presidential elections. A total of 1 million people are working at 33,101
polling stations.

123 polling stations were opened abroad for 253,146 voters, with the
largest number (8) opened in Moldova. The CEC also created 1,345
special polling stations. There are about 36.5 million voters in Ukraine.

The CEC accredited 4,028 foreign observers for the elections, as well
as 85,000 observers from political parties and organizations and about
390,000 observers representing presidential candidates.

About 1,500 journalists were accredited at the CEC to cover the
elections. Campaigning in the presidential elections started on July 3.
========================================================
ACTION UKRAINE REPORT-04, No. 211: ARTICLE NUMBER EIGHT
Letters to the editor are always welcome
========================================================
8. PROGRESSIVE SOCIALIST PARTY MARK ANNIVERSARY OF OCT
REVOLUTION AND MARCH TO THE UNITED STATES EMBASSY
Urge unity with Russia and Belarus, No to NATO, No to Yushchenko

Ukrainian News Agency, Kyiv, Ukraine, Sun, November 7, 2004

KYIV - Some 3,000 supporters of the Progressive Socialist Party (PSPU)
have held a rally in Kyiv to mark the 87th anniversary of the October
Revolution. They gathered on Besarabska Square, marched through
Khreschatyk, Prorizna Street, Yaroslaviv Val, Vorovskoho, Observatorna,
and Kotsiubynskoho to the United States Embassy.

The demonstrators carried signs saying "Hands off Ukraine," "For Union of
Ukraine and Russia," "No to NATO in Ukraine," "Vitrenko against war,"
Yes to the Union of Ukraine, Russia and Belarus," and "Yuschenko, suitcase,
railway station, America."

PSPU leader Natalia Vitrenko addressed them with a speech. She spoke
against US's interference in the domestic policy of Ukraine and called to
say no to pro-American candidate Viktor Yuschenko.

She empathized on the need to unite with Russia and Belarus and said that
the country must be raised for the sake of this idea. "Ukraine is neither
Yugoslavia nor Georgia. Ukraine is a Slavonic country and we must unite
with our brothers," Vitrenko said.

She also called on her supporters to not let the fascist regime to gain
foothold in Ukraine. "Rise against the orange plague of the revived fascism
and do not let Ukraine to be torn to pieces," she called. -30-
========================================================
ACTION UKRAINE REPORT-04, No.211: ARTICLE NUMBER NINE
========================================================
9. RADA SPEAKER ASKING KIVALOV TO STRENGTHEN CEC'S
CONTROL OVER EXPECTED SECOND ROUND OF PRES ELECTION

Ukrainian News Agency, Kyiv, Ukraine, Mon, November 8, 2004

KYIV - Verkhovna Rada Chairman Volodymyr Lytvyn is asking Serhii
Kivalov, the chairman of the Central Election Commission (CEC), to
strengthen the CEC's control over the expected second round of the
presidential election. The press service of Rada disclosed this in a
statement, the text of which Ukrainian News has obtained.

In particular, Lytvyn is asking Kivalov to organize the CEC's control over
the specification of the lists of voters in the run-up to the second round
of the presidential election. Lytvyn is also asking Kivalov to exercise
control over the issuing of absentee voting certificates and the casting of
ballots with them. Besides, Lytvyn is asking Kivalov to ensure that
information on the election results from the territorial election
commissions is received in the CEC immediately following the registration
of the protocols on the election results.

"To ensure... immediate transfer by the territorial election commissions of
information by telegraph [fax] on the results of voting within the confines
of the territorial electoral constituency to the Central Election Commission
immediately following the compilation and signing of the protocol..." the
press service quotes Lytvyn's letter to Kivalov. Lytvyn also proposes to
Kivalov to examine the possibility of controlling the casting of ballots
with absentee voting certificates with the help of putting marks in the
passport.

As Ukrainian News reported previously, voting in the presidential elections
took place on October 31. The United States, European Union, Japan,
Organization for Security and Cooperation in Europe, NATO's Election
Observer Mission and the Parliamentary Assembly of the Council of Europe
have negatively assessed the election campaign, noting that the election
fell short of international democratic standards. The Election Observer
Mission of the Commonwealth of Independent States mainly gave a positive
assessment to the elections, declaring that it was opened and faired. -30-
========================================================
ACTION UKRAINE REPORT-04, No.211: ARTICLE NUMBER TEN
Your financial support is needed, please send a check.
========================================================
10. KYIVANS' ON THE ELECTION, CYNICISM AND ANGER

By Oksana Tsisyk, Kyiv Post Staff Writer
Kyiv Post, Kyiv, Ukraine, Thursday, Nov 4, 2004

KYIV - As the ballot-counting drama continued to unfold at the Central
Election Commission on Nov. 2, Kyivans with whom the Post talked in the
Quadrat shopping mall in the city center expressed dissatisfaction with the
election process. Most people agreed to speak only anonymously, and some
were reluctant to state their profession.

"The election process was messy and rotten," said Serhiy, a 40-year-old
finance director. "I haven't seen such lawlessness in the previous five or
six elections I participated in. Bandits are bandits, and the country will
be not a free economic zone but a closed zona [prison]. All my friends
think the same."

Larysa, 45, who voted for opposition candidate Viktor Yushchenko, said
the CEC is not telling the truth. "All my friends, everyone is horrified.

Everyone is so desperate and worried what's going to happen next. We
don't know what future awaits Ukraine. It's just awful."

Eduard, 71, a pensioner, also said the vote count was unfair. "First they
said Yushchenko is leading, and in the end it turned out that [Prime
Minister Viktor] Yanukovych is number one." Although he didn't vote for
either man, he said if Yanukovych becomes a president, "Ukraine will be
ruled by criminal elements."

Galyna Petrivna, who sells gloves and other small items near a metro
station, said, "I think Ukrainians are the most withered nation. Ukraine was
under Russian rule for 300 years, and Russia was doing something for them.
And now when they had to make their choice themselves, they elected two
bandits," said 75-year-old woman.

"One is a bandit who raped somebody, and the other bandit stole money.
There were holy, good, pure people [running for president]. Choose from
among good people! But they didn't vote for them."

Viktor, a 44-year-old businessman, said Ukraine had been deceived. "If
Yanukovych becomes president, children will stop studying in school,
everyone will become a hooligan, a bandit. One doesn't need to study in
school to become president. If a person can't spell his job title, the issue
is clear."

Roman, a 26-year-old businessman, said: "The elections were falsified in
favor of the current prime minister... In several years, should Yanukovych
win, Ukraine may turn into Belarus, and there will be no more elections."
The elections are "bardak" - a mess, or brothel - said Oleksandr, 25, who
works in a printing house.

Olena, 27, a hairdresser, said she is unhappy with the preliminary voting
results, but holds out hope for the Nov. 21 run-off election, when she
suspects turn-out will be higher. Yanukovych, she said, might prove a good
president. "When people start holding the steering wheel, then maybe they
start feeling a stronger responsibility for others."

Hanna, a 45-year-old manager, said that under Yanukovych, the country will
either stagnate or move backward. Of the prime minister's youthful stints in
prison, she said "only God" could judge him. "It's not our task. But [his
previous convictions] should have come to light before he ran for
president."

Vasyl, who refused to state his occupation, said: "I talked to my sister
from Luhansk oblast. Her husband is a miner. They were forced to work
two shifts in a row and their bosses went to vote, instead of them, for
Yanukovych. Policemen even visited them at home and agitated [for
Yanukovych]. And they visited [my sister]. She said, 'Can you imagine, you
work for the police, and when you apply for a job, you write your CV saying
that your father and grandfather were not convicted of crimes. I don't get
the police and law-enforcement representatives agitating for a previously
convicted person for president."

While he spoke, a woman stopped to mention that a demonstration was in
progress in Kontraktova Square. For several minutes, four citizens gathered
to argue politics.

"The thing is," Vasyl went on, "other countries are going to laugh at our
president, who was imprisoned... Abroad, a person can't serve in parliament
if he has a mistress, but we're going to have a criminal country - or what?
My sister said he [Yanukovych] did not serve in the army and had been
convicted. 'I wouldn't even marry him,' she said, 'let alone vote for him.'"

Anya, 21, a legal assistant, said: "Everything was falsified. Half my
friends were paid for forging ballots. They had pens with two ends: one
writing and the other erasing. They were erasing and altering the ballots of
those who already voted." -30- [Action Ukraine Monitoring Service]
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11. INTERNATIONAL JOURNALISTS BACK EMBATTLED
COLLEAGUES IN UKRAINE

International Journalists Network (IJNET)
International Center for Journalists, Washington, D.C., Fri, Nov 05, 2004

WASHINGTON, The world's largest journalists' organization is praising
hundreds of Ukrainian TV journalists who are protesting censorship amid
tense presidential elections.

The International Federation of Journalists (IFJ) is urging newspeople
worldwide to send messages of support to the journalists, who say they
have been harassed by managers for not supporting pro-government
coverage.

IFJ observers in Kiev report that TV news coverage improved
dramatically after October 30, when many journalists announced their
call for independence at a news conference.

The protests have taken various forms. The staff of independent
Channel 5 - one of the few stations that had been willing to give
airtime to the opposition - went on a weeklong hunger strike. At
least 181 journalists from 18 stations declared they would adhere to
professional ethics, refusing to ignore the opposition. And on
October 31, journalists from six of the largest stations promised to
picket any station that fires its journalists and protest whenever
major events go unreported.

"Our colleagues stand tall despite life-threatening pressures from
management and their political masters," IFJ general secretary Aidan
White said in a November 1 release. "Journalists are showing great
courage to defend their rights. We support them every step of the
way."

The protests are taking place amid nationwide electoral anxiety. In
the November 1 presidential vote, both Prime Minister Viktor
Yanukovich and top challenger Viktor Yushchenko received about 40
percent of the vote. Without a majority for either candidate, the
country is preparing for a runoff election November 21. Yanukovych
favors a strong state and closer ties with Russia, while opposition
candidate Yushchenko is an economic liberal who leans toward better
relations with the West.

The IFJ says that the Independent Media Trade Union of Ukraine is
organizing the protests, and journalists who wish to support them
should send messages to info@profspilka.org.ua. -30-
----------------------------------------------------------------------
Web: http://www.ijnet.org; E-mail: Editor@icfi.org
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12. "UKRAINE'S EMBATTLED CHANNEL 5 STAYS ON THE AIR"
Supporters of Yanukovych are accused of repressing the media

FEATURE ARTICLE: By Catherine Fitzpatrick
Radio Free Europe/Radio Liberty (RFE/RL)
Prague, Czech Republic, Sunday, 07 November 2004

KIEV - Hunger-striking television journalists at Channel 5 in Ukraine ended
their week-long fast last week after authorities unfroze the station's bank
account, meeting one of the strikers' demands in regards to a libel suit
launched by an opponent.

But officials of the Central Elections Commission leveled fresh charges at
the station this week, claiming it had violated campaign rules by
broadcasting a live statement by opposition leader Yulia Tymoshenko, AP
reported 4 November. TV5's leading anchor, Mykola Veresen, said he was
uncertain whether the public accusations would translate into legal action
against the station, and characterized the move as "just another excuse for
authorities to maintain their pressure," AP reported.

"We are working now because we want to put into practice that which we
advocate each evening [i.e. freedom of speech]."

Channel 5 is the only independent TV station in Ukraine consistently
providing access for main opposition candidate Victor Yushchenko. The
station remains on the air and is being closely watched by international
monitors as a key indicator of the fairness and freedom of Ukrainian run-off
elections on 21 November. Attacks on the station in the last year from
various quarters have been characterized by station managers as being
supported by the campaign of Prime Minister Victor Yanukovych, the
government of President Leonid Kuchma's favored candidate in the
presidential elections.

In an action perceived by both Channel 5 as well as international election
monitors as politically-motivated, Volodymyr Sivkovych, a businessman and
parliamentary deputy, sued the station for libel, based on a broadcast
claiming that he was "collaborating" with the Kuchma government. The
broadcast alleged that Sivkovych had fabricated his report about
Yushchenko's claim of poisoning, the subject of a parliamentary
investigation. Yanukovych denied instigating the lawsuit, Ukrainian news
services reported.

Channel 5 is also pushing for an emergency meeting of the National Council
for TV and Radio Broadcasting to confirm that it has won the tender for
channel 48, Public Radio in Ukraine reported 22 October. The striking
journalists also wanted the council to enforce earlier licensing agreements
with regional network to rebroadcast Channel 5 programs, which were
stopped under pressure from local officials in some areas.

The independent station is owned by businessman Petro Poroshenko, a
parliamentary deputy for the opposition bloc Our Ukraine. Rivals charge
the channel with serving as a propaganda outlet for the opposition, but
Yushchenko's campaign has complained about saturation coverage for
Yanukovych on state-sponsored television and commercial stations close to
the government, and insufficient access for opposition candidates on their
programs.

The two candidates will face a run-off on 21 November after a tight
first-round race in which Yushchenko officially finished about a percentage
point behind Yanukovych, with neither man gaining the necessary 50 percent
to win the first round. The exact vote counting and the feedback from voters
in exit polls has now come under intense scrutiny in the run-up to the
second round and television is poised to play a key role in ensuring the
victory of the people's choice -- if it can stay on the air and report
events freely.

Independent pollsters have found that respondents to surveys who are not
required to give their names or those in face-to-face interviews support
Yushchenko. One exit poll conducted by secret ballot showed Yushchenko
with 45 percent of the vote and Yanukovych with 37 percent, the London
"Times" reported 31 October. Yushchenko said the vote count conducted
by his supporters showed him with 50 percent to Yanukovych's 28 percent.

Although several exit polls have been commissioned in Ukraine with the
support of the U.S. and other foreign donors, the tradition of approaching
people immediately after they have voted has not taken root with the media
or the public. Voters are reluctant to speak their minds in what has become
an intimidating and, at times, violent campaign atmosphere with the arrests
of demonstrators and attacks on journalists. Reporters are also unwilling to
face both recalcitrant voters and possible harassment from election
officials or police.

A crucial factor for opposition in this government-controlled situation is
whether television can reach enough people to embolden them with the belief
that they can both freely chose their candidate without reprisals and that
their candidate has a chance of winning.

Channel 5's hunger strike was endorsed by other Ukrainian stations and
attracted international statements of solidarity as well. The International
Federation of Journalists applauded their colleagues' "great courage,"
saying they "stand tall despite life-threatening pressures from management
and their political masters," Aidan White, the International Federation of
Journalists general secretary, said in a statement at ifex.org, an
international exchange for organizations promoting media freedom. The
IFJ maintains a monitoring mission in Ukraine.

The nongovernmental organization IFEX gathered other statements from
Freedom House, Article 19, and Reporters Without Borders in support of
some 200 journalists who petitioned for an end to government pressure on
the media.

On 29 October, journalists from six channels held a meeting and vowed to
picket any TV station that dismissed journalists and to "take counteraction"
whenever events such as mass demonstrations or police crackdown were not
reported.

The journalists believe that due to their protests, coverage has improved
and the government has resorted less to "obvious lies and black propaganda,"
ifex.org reported. For the first time on 29 October, the public channel UT-1
broadcast an interview with Yushchenko and also aired an interview with
Nikolai Tomenko, head of the parliamentary Committee on Free Speech.

The situation around Channel 5 is being compared to other countries in the
region where hotly contested elections were won or lost depending on the
strength of independent television to withstand pressure from leaders in
power who misused their office to control the airwaves.

In Georgia in 2003, the independent station Rustavi-2 played a key role in
providing alternative coverage for the public during the crucial moments of
the "rose revolution." In previous years, Georgian lawyers and journalists
battled through the courts to keep the station on the air when it was closed
by the government of President Eduard Shevardnadze. Rustavi-2 gained
enough public support by 2003 that public anger about efforts to silence it,
as well as solidarity even from state-sponsored TV editors, enabled the
station to pursue its mission of covering the news independently.

In Serbia in 1996, the independent coverage of a network of dozens of
independent municipal stations was indispensable for getting across the
message that the authorities were trying to tamper with votes from a
majority in favor of removing President Slobodan Milosevic from office.

By contrast, in Belarus this October, opposition candidates had virtually no
access to Belarusian national television, even as President Alyaksandr
Lukashenka used the media to keep a steady stream of attacks on his rivals.

While independent candidates attempted to work around this obstacle by
getting air time on neighboring Russian television available to viewers in
Belarus, the Belarusian regime retaliated by pressuring and even expelling
critical Russian news bureaus and journalists, at times shutting off Russian
TV completely. In Azerbaijan and Kazakhstan, independent television stations
that attempted to get started were shut down long before election day so as
not to pose a threat to the government's plans to stay in power.

Last week, Russian President Vladimir Putin visited Ukraine, and all three
major networks in Ukraine provided continuous coverage of his visit,
perceived as a boost for Yanukovych in favor of the status quo.

Libel suits are a common tactic of both government officials and the
opposition in Ukraine, but the government generally gains the upper hand. It
is common practice to seize assets that may be required for a court
judgement even before a judge renders a decision. Channel 5 continued to
work while its account was frozen, fending off charges from critics that it
was merely opening other accounts. Lawyers for the station said that with
the station's account frozen, that would be impossible to do.

"If you think we're working just for money, you're mistaken," said one
Channel 5 journalist. "We are working now because we want to put into
practice that which we advocate each evening [i.e. freedom of speech],"
rferl.org reported on 22 October.

Strategically refraining from making TV appearances has become just as much
a campaign tactic as ensuring saturation coverage. Yanukovych said on 4
November that he refused to hold television debates with Yushchenko,
Interfax-Ukraine reported the same day. He accused Yushchenko of mud-
slinging throughout the campaign, and said he could not sit at the same
table with him, korrespondent.net reported on 4 November.

For his part, the Yushchenko campaign accused Yanukovych of "cowardice" for
refusing to face the public in a debate Yushchenko believed he would win,
korrespondent.net reported on 4 November. Three other channels (Novy, ICTV,
and STB) have said they would broadcast the event. ICTV spokesman Stanislav
Piltyai said his station was prepared to air the debates because "televised
debates will be exceptionally important for Ukrainian society and for a fair
and open choice by its citizens," ITAR-TASS reported on 4 November.
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13. NEW HUNGARIAN PARTY OF UKRAINE FORMS ALLIANCE
WITH VIKTOR YUSHCHENKO

Kossuth Radio, Budapest, Hungary, in Hungarian, 7 Nov 04
BBC Monitoring Service, UK, in English, Sun, November 7, 2004

BUDAPEST - In Ukraine, the Trans-Carpathian Hungarian Cultural
Alliance has formed a party. At the same time, as the Hungarian Party
of Ukraine, it also formed an alliance with the opposition candidate of
the presidential election, who advocates friendly politics with the West.

In exchange for the Hungarians' votes Viktor Yushchenko promised
that if he is elected, he will support the formation of a Tisza-valley
district [Hungarian river on the border with Ukraine] and a Hungarian
education region. He pledged to extend the linguistic rights of the
Hungarians of Trans-Carpathia and to do away with the official red tape
obstructing support arriving from Hungary, too. The second round of
the elections will be held on 21 November in Ukraine. -30-
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14. FORMER PRIME MINISTER ANATOLII KINAKH AND HIS PIEU
PARTY DECIDE TO SUPPORT VIKTOR YUSHCHENKO
Party of Industrialists and Entrepreneurs (PIEU)

Ukrainian News Service, Kyiv, Ukraine, Monday, Nov 8, 2004

KYIV - The People's Power coalition, which unites the Yulia Tymoshenko
Coalition and the Our Ukraine coalition of political parties, has reached an
agreement with the Party of Industrialists and Entrepreneurs on supporting
Our Ukraine's leader and presidential candidate Viktor Yuschenko in the
expected second round of the presidential election. The agreement on
supporting Yuschenko was signed by PIEU leader Anatolii Kinakh and
Yuschenko.

"We are calling on all citizens of Ukraine to support the candidate for the
post of President Yuschenko Viktor Andriiovych on the day of voting,
November 21, 2004," it is mentioned in the agreement. It is also mentioned
in the agreement that People's Power and the PIEU favors the creation of a
government in Ukraine that has the people's trust from representatives of
various political parties.

People's Power and PIEU are urging Ukraine's citizens to actively
participate in voting on November 21 in order to prevent the authorities
from falsifying the election. "We are calling on all democratic political
forces of Ukraine to consolidate their efforts for ensuring honest and
transparent presidential elections of Ukraine," it is mentioned in the
agreement.

People's Power and PIEU also oppose the artificial division of Ukraine into
East and West, and also they are against discrimination of Ukrainian
citizens based on their language, ethnic and religious belonging. As
Ukrainian News reported previously, the Socialist Party had earlier decided
to support Yuschenko's candidacy in the forthcoming second round of the
presidential election.

The presidential election was held in Ukraine on October 31, as a result of
which 2 of 24 candidates gained the highest number of votes: with 97.67%
of the results in from the election commissions, the CEC has declared that
39.88% of ballots were cast in favor of Prime Minister Viktor Yanukovych,
whereas Yuschenko received 39.22% of the votes. Moroz received 5.83%
of the votes, while Kinakh won 0.94% of votes. The second round of the
election is expected to take place on November 21. -30-
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