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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 262
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C., Kyiv, Ukraine, FRIDAY, December 17, 2004

Please send this Report to anyone you think would like to receive
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-----INDEX OF ARTICLES-----
"Major International News Headlines and Articles"

1. VIKTOR YUSHCHENKO POISONED BY TCDD
The most harmful known form of dioxin, no way it occurred naturally
By Emma Ross, AP Medical Writer, AP Newsbreak
The Associated Press, London, UK, Friday, Dec 17, 2004

2 REPORT: FRENCH PR FIRM LINKED TO POISONING
UPI, Kiev, Ukraine, Friday, Dec 17, 2004

3. UKRAINE: VIKTOR YUSHCHENKO SURE GOV'T POISONED HIM
By Yuras Karmanau, Associated Press, Kiev, Ukraine, Wed, Dec 16, 2004

4. U.S. CONGRESSIONAL DELEGATION TO VISIT KIEV AND LVIV
Public Affairs Section, United States Embassy
Kyiv, Ukraine, Friday, December 17, 2004

5. YANUKOVYCH CALLS HIS OPPONENTS "ORANGE RATS"
Interfax-Ukraine news agency, Kiev, Ukraine, in Russian, 17 Dec 04
BBC Monitoring Service, UK, in English, Fri, Dec 17, 2004

6. UKRAINIAN PRIME MINISTER FORESEES NEW CRISIS
Say Backers Would Block Defeat In Presidential Rerun
By Peter Finn in Kiev, Washington Post Foreign Service
The Washington Post, Washington, D.C., Friday, Dec17, 2004; Front Page

7. YANUKOVYCH TALKING TOUGH ON FOREIGN AFFAIRS
Ukrayina TV, Donetsk, Ukraine, in Russian, Thu, 6 Dec 04
BBC Monitoring Service, UK, in English, Thu, December 16, 2004

8. UKRAINE: COMMITTEE OF VOTERS ASSESSES PREPARATION
FOR THE REPEAT RUNOFF VOTE ON DECEMBER 26, 2004
Committee of Voters of Ukraine (CVU), Kyiv, Ukraine, Thu, Dec16, 2004

9. BRITISH COMPANY ALLOWED TO PURCHASE A MAJOR
STAKE IN UKRAINIAN CAR PLANT IN LUTSK
Interfax-Ukraine news agency, Kiev, in Russian, 17 Dec 04
BBC Monitoring Service, UK, in English, Thursday, Dec 17, 2004

10. UKRAINIAN AG POLICY MINISTER SLAUTA RESIGNS
Ukrainian News Agency, Kyiv, Ukraine, Thu, Dec 16, 2004

11. UKRAINE: EBRD DECIDES TO PROVIDE USD 200 MILLION
FOR FINANCING SMALL, MEDIUM, & MICRO BUSINESSES
Ukrainian News Agency, Kyiv, Ukraine, December 16, 2004 (15:22)

12. EBRD OPENS CREDIT LINE WITH UKRAINE'S MAJOR
BREWERY OBOLON FOR USD $10 MILLION
Ukrainian News Agency, Kyiv, Ukraine, Thu, December 16, 2004

13. EBRD TO LOAN DNIPROPETROVSK 20 MILLION EURO FOR
IMPROVING WATER-SUPPLY INFRASTRUCTURE
Ukrainian News Agency, Kyiv, Ukraine, Thu, December 16, 2004

14. UKRAINIAN MISSILE DESIGNER SHARES U.S. CONCERNS
ABOUT MISSILE FUEL RECYCLING
Interview with Volodymyr Kukushkikn by Oleksandr Perepelytsya
Narodna Armiya, Kiev, Ukraine, in Ukrainian Fri, 16 Dec 04
BBC Monitoring Service, UK, in English, Fri, Dec 17, 2004

15. CEC DECIDES TO ESTABLISH RESULTS OF RUNOFF REVOTE
ON PRESIDENTIAL ELECTION AFTER PERIOD FOR
APPEAL OF ELECTION PROGRESS ENDS
Ukrainian News Agency, Kyiv, Ukraine, Fri, December 17, 2004

16. UKRAINE: PGO OPENS CRIMINAL CASE ON FALSE VOTE
COUNT AND ELECTION RETURNS ANNOUNCEMENT BY CEC
Ukrainian News Agency, Kyiv, Ukraine, Wed, December 16, 2004

17. OSCE INCREASES NUMBER OF OBSERVERS ON REPEATED
RUNOFF VOTE ON UKRAINIAN PRESIDENTIAL
ELECTION FROM 600 TO 1,000
Ukrainian News Agency, Kyiv, Ukraine, Wed, December 16, 2004

18. YUSHCHENKO NOT RULING OUT ATTEMPT BY KUCHMA
TO OBSTRUCT REPEAT OF PRESIDENTIAL ELECTION RUNOFF
Ukrainian News Agency, Kyiv, Ukraine, Wed, December 16, 2004

19. YUSHCHENKO ACCUSES YANUKOVYCH'S CAMPAIGN
TEAM OF PLANNING TO OBSTRUCT REPEAT OF UKRAINE'S
PRESIDENTIAL ELECTION RUNOFF
Ukrainian News Agency, Kyiv, Ukraine, Wed, December 16, 2004
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER ONE
========================================================
1. VIKTOR YUSHCHENKO POISONED BY TCDD
The most harmful known form of dioxin, no way it occurred naturally

By Emma Ross, AP Medical Writer, AP Newsbreak
The Associated Press, London, UK, Friday, Dec 17, 2004

LONDON - Ukrainian opposition leader Viktor Yushchenko was
poisoned by TCDD, the most harmful known form of dioxin and a
key ingredient of the Vietnam-era herbicide Agent Orange, the
scientist who conducted tests on the presidential candidate's blood
said Friday.

Abraham Brouwer, professor of environmental toxicology at the Free
University in Amsterdam, told The Associated Press that the dioxin
was TCDD, chemically known as tetrachlorodibenzoparadioxin.
Brouwer carried out tests on blood samples sent by Yushchenko's
doctors in Vienna.

TCDD was a key ingredient of Agent Orange, a herbicide blamed for
myriad health problems in U.S. veterans of the Vietnam War and local
villagers. It is produced inadvertently during manufacturing
processes that use chlorine, such as paper and pulp bleaching. It is
also given off by incinerator fumes. There is no commercial
production of TCDD.

The tests also confirmed that Yushchenko's blood contained 100,000
units of dioxin, the second highest concentration ever recorded.

"It is a single chemical, not a mix," said Brouwer said. "This tells
us ... there is no way it occurred naturally, because it is so pure."
"There were some small signals in the test that may tell us something
about where it was ... made," he added.

Yushchenko, who faces Kremlin-backed Viktor Yanukovych in a
repeat presidential election on Dec. 26, fell ill after having dinner with
Ukrainian Security Service chief Ihor Smeshko and his deputy
Volodymyr Satsyuk on Sept. 5.

Yushchenko reported having a headache about three hours after the
dinner, and by the next day had developed an acute stomach ache. He
later developed pancreatitis and gastrointestinal pain, as well as a
severe backache.

About three weeks after his first symptoms, Yushchenko developed
severe facial disfiguring which is the hallmark of dioxin poisoning.
Yushchenko told the AP on Thursday that he is convinced he was
poisoned at the Sept. 5 dinner.

"It was a project of political murder, prepared by the authorities,"
Yushchenko said. The dinner "was the only place where no one from
my team was present and no precautions were taken concerning the
food," he said.

Physicians in Vienna, where the opposition candidate has been treated
for the illness, confirmed last weekend that he was poisoned. -30-
========================================================
ACTION UKRAINE REPORT-04, No.262: ARTICLE NUMBER TWO
========================================================
2. REPORT: FRENCH PR FIRM LINKED TO POISONING

UPI, Kiev, Ukraine, Friday, Dec 17, 2004

KIEV - The extent of an apparent plot to poison Viktor Yushchenko, Ukraine's
opposition leader, and then cover up the evidence now reaches across Europe.
Yushchenko, who said he was poisoned with dioxin at a dinner with Ukraine's
secret police, was found to have ingested 6,000 times the level of dioxin
healthy people have, the Financial Times reported Friday.

Soon after Yushchenko first claimed he had been poisoned, President Leonid
Kuchma's son-in-law [Viktor Pinchuk] engaged a French public relations team
to initiate a media campaign, centered on a Vienna clinic, calculated to
disparage the poisoning accusations, the newspaper said.

Yffic Nouvellon of EuroRSCG and his public relations team arranged a press
conference where Lothar Wicke, general manager of Vienna's Rudolfinerhaus
Clinic, contradicted Yushchenko's poisoning allegations. Nouvellon also
contacted international media offering "evidence" Yushchenko had not been
poisoned. When asked during the media campaign, Nouvellon denied any
connections to Kuchma's family. The clinic's president has since cut its
ties to Nouvellon and EuroRSCG.

Kuchma, a close ally of Russian President Vladimir Putin, has openly
supported Yushchenko's opponent in the now-discredited presidential
election. Meanwhile, the host of the dinner where Yushchenko was apparently
poisoned has been dismissed as deputy chief of Ukraine's secret police, and
authorities are investigating. -30- [Action Ukraine Monitoring Service]
========================================================
ACTION UKRAINE REPORT-04, No.262: ARTICLE NUMBER THREE
========================================================
3. UKRAINE: VIKTOR YUSHCHENKO SURE GOV'T POISONED HIM
Opposition Leader Pinpoints Sept. 5 Dinner With Security Officials

By Yuras Karmanau, Associated Press, Kiev, Ukraine, Wed, Dec 16, 2004

KIEV, Ukraine -- Opposition leader Viktor Yushchenko said Thursday
that he was sure he was poisoned by the Ukrainian government and
believes it most likely happened at a dinner he had with the
country's top security service officials.

Yushchenko's comments, made in an interview with The Associated
Press, were the first time he pinpointed when and where he believed
he was poisoned with dioxin. He said it likely happened at a Sept. 5
dinner with the head of the Ukrainian security service, Ihor Smeshko,
and his deputy, Volodymyr Satsyuk.

"That was the only place where no one from my team was present and
no precautions were taken concerning the food," he said. "It was a
project of political murder, prepared by the authorities."

A parliamentary commission that investigated Yushchenko's mysterious
illness in October said he had complained of pains -- including a
headache about three hours after the meal and an acute stomach ache
the next day -- after meeting with Smeshko. The commission, however,
also listed other places he ate or drank that day.

Yushchenko, who was disfigured by poisoning, told The AP that
Ukrainian prosecutors were looking into the case and said he was
confident the official culprits would be punished.

"I have no doubt that within several days or weeks, this path will
lead to the authorities, to specific people representing the
government -- who administered the poison, who was involved, from
whom the poison was procured," he said. "Who blessed it on different
levels of government?"

Members of Yushchenko's campaign team had spoken of the security
dinner as a possible site of the poisoning, but Yushchenko himself
had until now refrained from pointing the finger at specific
officials.

Experts say it is impossible for Yushchenko to have naturally
acquired such high levels of dioxin. New tests reveal the level in
his blood is more than 6,000 times higher than normal and is the
second highest ever recorded in human history, said Abraham Brouwer,
professor of environmental toxicology at the Free University in
Amsterdam, where blood samples taken in Vienna were sent for analysis.

Brouwer's team has narrowed the search from more than 400 dioxins to
about 29 and is confident they will identify the poison by week's end.
Poisoning experts say those who spiked Yushchenko's food may have
aimed to kill him or may simply have tried to debilitate him during
the election campaign. What constitutes a lethal dose of dioxin has
never been established, because nobody has ever been known to die
from it.

It's possible that Yushchenko did not eat all of the poisoned meal
and so escaped death by accident, but it's also possible that dioxin
was chosen because it is recognized as a crippling poison that
normally doesn't kill, scientists say.

Speaking on other subjects, Yushchenko criticized Russia's
involvement in the Ukrainian campaign as "interference in the
internal affairs of Ukraine."

"This is debasing for Russia, it debases its authority, its policies,
the entire state. It's not a policy that should be conducted between
neighbors," he said.

He said, however, that if he wins the Dec. 26 presidential rerun, he
would make efforts to turn a new page in relations with Russia, which
heavily backed his rival, Prime Minister Viktor Yanukovych.

"Russia is our eternal neighbor, a strategic neighbor," he said. "We
must always have excellent relations with it. My government will do
everything possible, everything I can, to achieve this."

At the same time, he said Ukraine would move to integrate more
closely into European structures and possibly aim at an associate
membership in the European Union in three to five years.

He voiced confidence that Ukraine would not split, but reaffirmed the
need to punish regional officials in mostly Russian-speaking eastern
provinces who had pushed for self-rule as part of their efforts to
support Yanukovych.

Early Thursday, Yushchenko warned that "provocations" allegedly being
planned by his opponent could jeopardize the Dec. 26 rerun, which the
Supreme Court ordered after ruling the Nov. 21 second-round vote
fraudulent.

"There is not a 100 percent guarantee that the election will take
place," he told reporters at a news conference in the capital. "I
know of provocations being prepared in the eastern regions."
Yushchenko did not elaborate on what sort of provocations could be
planned.

Yushchenko has been working hard in recent days to expand his base
of support from western parts of the country, where Ukrainian
nationalism is strong, to the eastern areas, which have strongly
backed Yanukovych.

Yushchenko told The AP that allegations he had received campaign
financing from the United States were "nonsense." "Neither I nor my
political partners have received or will receive any money from America,
from the government or from non-governmental organizations," he said.
========================================================
ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER FOUR
========================================================
4. U.S. CONGRESSIONAL DELEGATION TO VISIT KIEV AND LVIV

Public Affairs Section, United States Embassy
Kyiv, Ukraine, Friday, December 17, 2004

KYIV - A bi-partisan delegation of United States Congressional
Representatives led by Congressman Dana Rohrabacher (R - California)
will visit Ukraine Dec. 18-21. Other members of the delegation are
Representatives Marcy Kaptur (D- Ohio), Roscoe G. Bartlett (R-Maryland),
Adam B. Schiff (D-California), Maurice D. Hinchey (D-New York), and
Darrell Issa (R-California).

The delegation will meet with senior Ukrainian officials and other leading
members of Ukrainian political life in Kiev and Lviv to discuss
U.S.-Ukrainian relations and current affairs in Ukraine. Members of the
delegation are particularly interested in assessing the situation leading up
to the scheduled December 26 presidential election rerun. -30-
----------------------------------------------------------------------------
Public Affairs Section, United States Embassy Kyiv
4 Hlybochytska St., Kyiv 04050 Ukraine
(380 44) 490-4026, 490-4090, Fax (380 44) 490-4050
info@usembassy.kiev.ua, http://usembassy.kiev.ua
========================================================
ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER FIVE
========================================================
5. YANUKOVYCH CALLS HIS OPPONENTS "ORANGE RATS"

Interfax-Ukraine news agency, Kiev, Ukraine, in Russian, 17 Dec 04
BBC Monitoring Service,UK, in English, Fri, Dec 17, 2004

KHARKIV - Presidential candidate [Prime Minister] Viktor Yanukovych
thinks that the Ukrainian people will give their first response to the
"oranges [opposition candidate Viktor Yushchenko's campaign colour]"
in the 26 December [presidential election] vote. Speaking to workers
in Kharkiv Region on his campaign visit on Friday, he was commenting
on a question from his audience as to "why the 'orange wolves' are still
at large".

"I think the Ukrainian people will give their answer on 26 December - this
will be the first response to Chamberlain [Soviet-era expression for firm
reply to scorned opponent], and other answers will follow later," he said.
"I think they know who, to put it mildly, was to blame for this glory
(opposition protest - Interfax-Ukraine)," he added.

Yanukovych also said that he did not like the term "orange wolves" and that
it should be replaced with "orange rats", explaining that "wolves are noble
beasts. I respect them a lot". He said that he had changed his rhetoric
since yesterday. "we must consider how to build our future, and this will
unite us all irrespective of nationality or religion," said Yanukovych.

He said people had put on orange ribbons in protest at the policies of the
old authorities. "We don't object to their protest, we agree with them, and
we invite them to join in building our future, where everyone will find a
place," he said.

Yanukovych repeated that the amendments to the election law adopted by
parliament undermine civil rights and discriminate against invalids and
other citizens who cannot get to polling stations [provision cutting the
right to vote from home, which was abused on a massive scale during the
annulled second round of the election on 21 November]. "Our opponents
have decided to fight our people in that way, but not to fight Yanukovych,"
he said, calling on citizens able to do so to help invalids get to the
polling stations. "We mustn't allow this to happen," he said. -30-
========================================================
ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER SIX
========================================================
6. UKRAINIAN PRIME MINISTER FORESEES NEW CRISIS
Backers Would Block Defeat In Presidential Rerun, He Says

By Peter Finn in Kiev, Washington Post Foreign Service
The Washington Post, Washington, D.C., Fri, Dec 17, 2004; Front Page

KIEV, Ukraine, Dec. 16 -- Prime Minister Viktor Yanukovych said
Thursday that he would not accept a victory by his opponent in the
Dec. 26 rerun of Ukraine's contested presidential race and that his
supporters were likely to turn out into the streets en masse to block
such an outcome.

Yanukovych, who was the government-backed candidate in the
contested vote of Nov. 21, said the country's political and judicial
systems had buckled under the weight of what he called illegal
demonstrations and were violating the constitution to orchestrate
his defeat.

Yanukovych warned in an interview that he might not be able to
control supporters who are already mobilizing to launch a campaign
of street protests in the capital in the event of a victory by the
opposition candidate, Viktor Yushchenko.

"Even if Mr. Yushchenko wins, he will never be a president of
Ukraine," Yanukovych said in a 45-minute interview at his campaign
headquarters in Kiev. "The people who voted for me, they will never
recognize him. They are talking about it even now."

His comments suggested that his supporters intend to plunge Ukraine
into a new political crisis by adopting some of the tactics employed
in the "Orange Revolution," a name that arose from the color adopted
by Yushchenko's street campaign to protest official election results
in favor of Yanukovych following the Nov. 21 vote.

Hundreds of thousands of Yushchenko supporters turned out in the
ays after that vote, sometimes blockading government buildings. They
protested what they and Western election monitors said was wide-
spread poll fraud in Yanukovych strongholds in eastern Ukraine.

Yanukovych said he had consistently argued for a legal resolution to
the political crisis that has gripped the country since his victory
was overturned by the country's Supreme Court. He said political
power was not worth "a single drop of blood." But he said his ability
to restrain his voters if they felt cheated was diminishing.

"If this legal nihilism continues, I will not be able to stop people," he
said. "It's impossible to agree with this great injustice, this
discrimination.

And if it is indeed the face of the future authorities, I will never be on
their side. Today in these regions, there are civil organizations that are
being established, that are making lists of volunteers, and they will be
making some decisions." The prime minister said he was not involved
in making those decisions and did not know what they might involve.

"Today there is a people's movement," he said, speaking in
Russian. "We're not talking about myself here -- I want you to put
the emphasis correctly here -- we're talking about the violation of
the rights of 15 million Ukrainian voters."

Yanukovych supporters in the candidate's home region of Donetsk in
eastern Ukraine had considered calling a referendum on creating an
autonomous region if Yushchenko wins, but have backed off for now.
Some Yanukovych supporters in southern Ukraine have said they are
signing up people to march on Kiev if he loses.

Yushchenko backers have played down the threat of a mass street
uprising by the Yanukovych camp, viewing it as a bluff.

The prime minister, who went on leave from his post earlier this
month, said the Supreme Court, which ordered new elections, the
parliament, which created new electoral rules, and the president, who
signed a package of political reforms, had all acted illegally in the
weeks since the last round of voting, short-circuiting the
constitution to rig the next election.

"The laws that were adopted, particularly the law on the Central
Elections Commission, violated my rights," he said. "I don't have a
single representative at the CEC. If the goal was honest and
transparent elections, why are my representatives excluded from the
list of CEC members?"

He denied recent reports that he had advocated the use of force to
clear the streets of Yushchenko supporters. He did say the president,
Leonid Kuchma, should have restored order, but offered no views on
how that could have been achieved without risking violence.

"We have law enforcement bodies which were obliged to provide for the
normal work of the parliament, of the CEC and of the government," he
said, breaking into cynical laughter. "They shouldn't have allowed
that illegal push on all these above-mentioned bodies."

The prime minister also complained that he no longer had the kind of
news media coverage he had before earlier rounds of voting. At that
time, according to Western election monitors, state-controlled
television stations focused their coverage on Yanukovych and almost
systematically ignored Yushchenko, except to vilify him.

"Freedom of speech in Ukraine has been largely diminished,"
Yanukovych said. "I'm not always shown. My quotes, my interviews are
just cut. Small pieces of my speeches are taken out and shown, and
the entire sense of what I was trying to say is lost. This has
happened since the organizers of the Orange Revolution have united
with the authorities against me."

Asked about the earlier exclusion of Yushchenko from state
television, he said, "you know, it wasn't done by me or my team."
Yanukovych also said he wished that Russian President Vladimir Putin
had not mentioned him when Putin came to Ukraine twice before the
November vote, or spoken favorably about him when interviewed on
television.

"Mr. Putin did not come to visit me personally; it was not a strategy
of my electoral campaign," he said, denying allegations that he had
benefited from Russian financial support and the work of Russian
political consultants. "From a political point of view . . . it
didn't raise me up. It's rather worked against me." -30-
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http://www.washingtonpost.com/wp-dyn/articles/A5969-2004Dec16.html
========================================================
ACTION UKRAINE REPORT-04, No.262: ARTICLE NUMBER SEVEN
Your comments about the Report are always welcome
========================================================
7. YANUKOVYCH TALKING TOUGH ON FOREIGN AFFAIRS

Ukrayina TV, Donetsk, Ukraine, in Russian, Thu, 6 Dec 04
BBC Monitoring Service, UK, in English, Thu, December 16, 2004

The Ukrainian prime minister and presidential candidate, Viktor Yanukovych,
has said Ukraine's European course would remain unchanged under his
administration. But he said the EU was offering Ukraine a role not worthy of
a "world power". He warned Russia, Europe and the US against meddling in
Ukraine's affairs, and said a split of Ukraine would send ripples across the
region and reshape the map of Russia and Europe. He said Ukraine must not
be turned into a federation, but Ukrainian regions should receive "wide
economic autonomy". He also said democracy and freedom would "flourish"
if he comes to power.

The following is an excerpt from report by Ukrainian regional TV channel
Ukrayina (based in Donetsk and owned by Yanukovych's allies) on 16
December; subheadings inserted editorially:

DONETSK - [Presenter] Presidential candidate Viktor Yanukovych has made
an important statement. He appealed to the international community and urged
foreign leaders to stop splitting Ukraine's political elite. The statement
also reveals new details of the candidate's election programme.
[Passage omitted: correspondent repeating presenter's remarks]

REJECTS EU POLICY ON UKRAINE
[Yanukovych] There is a real threat that after 26 December Ukraine may find
itself on the verge of a full-blown crisis. Our opponents and, to my great
regret, almost all the western media portray the situation as if Ukraine is
choosing between Europe and Russia. This is absolutely not true. As the
prime minister and presidential candidate, I have never questioned Ukraine's
European choice. The debate is about the status and terms on which Ukraine
will enter the big Europe. I believe that Ukraine, despite all the
difficulties of the transition period, has the potential and geopolitical
role of a world power. This status must be respected by everyone, including
Russia, Europe and the US.
But what we are being proposed now is to wait in the long queue to join the
European Union, without any guarantees, and in the meantime to have the same
status as some North African countries. Our people will never lose their
dignity and accept the destiny of being cheap labour and a second-rate
market for the Eastern European countries. For our country, such a choice
would be a catastrophe, and mean a loss of scientific potential and big
industry, as well as bankruptcy of our agriculture. This is exactly why [my]
opponents are betting not on democracy but on using force to grab power.
They hope, citing the supposedly revolutionary situation, to break our
spirit through repressive actions.
I pity these people, for they know not what they are doing - or don't what
to know.
[Correspondent] Attempts at grabbing power by force look more like a
creeping coup, Yanukovych stressed. Unlike his opponents, who scurry off
abroad for advice on every problem, Viktor Yanukovych is himself ready to
give a piece of advice to Ukraine's Western and Eastern partners.

WARNS AGAINST FOREIGN MEDDLING
[Yanukovych] My main piece of advice is, stop splitting Ukraine's political
elite and Ukrainian society. On the contrary, you should foster a compromise
that would bring us back to the constitutional framework. My second piece of
advice, for some hot heads, both in the West and in Russia, who think it
possible to split Ukraine into two parts. In truth, there can be more such
parts, and this will have a ripple effect that will lead to a reshaping of
the map of both Europe and Russia. Ask yourself, who will benefit from this?
I would like to say this to US politicians, who speak about supporting
democracy in Kiev. You are knocking on an open door. Even during the current
crisis, no-one in Ukraine, except for the opposition itself, tried to
restrict the freedom of assembly and movement, or the work of journalists. I
can guarantee that once the crisis is overcome, democracy and freedom will
flourish in Ukraine.

[Correspondent] For the crisis to be resolved, its causes need to be
eliminated. In Yanukovych's opinion, the state structure of Ukraine does not
reflect the complex geopolitical landscape of the country, which plays host
to three culture and economic spaces - European, Eurasian and Mediterranean.
This is the way to solve the crisis.
FEDERALIZATION "DANGEROUS"
[Yanukovych] First, from the political point of view Ukraine remains a
unitary state, with a single legal and information space. Where
civilizations meet, federation does not work - sometimes it is even
dangerous. Second, regions of Ukraine must obtain a very wide economic
autonomy, including certain rights to protect their economic interests.
Third, all the laws ensuring wide economic autonomy of the regions must be
adopted jointly, and only in the Supreme Council of Ukraine. Fourth, all the
laws and decrees aimed at reforming relations between the centre and regions
but always pass the Constitutional Court's vetting. Fifth, [we want]
non-interference in Ukraine's internal affairs by any side, and
understanding that the reform is aimed at deepening our economic and
political cooperation, primarily with Europe and Russia, as well as any
other interested country.
[Correspondent] Viktor Yanukovych urged the political elite to foster
compromise and return to the realm of the constitution and laws. -30-
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER EIGHT
========================================================
8. UKRAINE: COMMITTEE OF VOTERS ASSESSES PREPARATION
FOR THE REPEAT RUNOFF VOTE ON DECEMBER 26, 2004

Committee of Voters of Ukraine, Kyiv, Ukraine, Thu, Dec 16, 2004

KYIV - The Committee of Voters of Ukraine's assessment of preparation
to the repeat runoff vote of the Presidential election in Ukraine on
December 26, 2004:

The Committee of Voters of Ukraine is the all-Ukrainian NGO, which has been
monitoring the election campaigns in Ukraine for several years in terms of
adherence to Ukrainian laws and international standards of the democratic
election by the campaign's actors. During the voting on October 31 and
November 21, 10,000 special correspondents of the Tochka Zoru Newspaper
(published by the CVU) worked at polling stations. The same number of
observers will work at stations on December 26.

Following scheduling the repeat runoff vote on December 26, the CVU has
started monitoring the election situation in all regions of Ukraine, Kyiv
and Sevastopol cities.

According to assessments of the Committee of voters of Ukraine, based on
results of the monitoring, which was held on December 1-14, Ukraine has good
chance for more open and free voting on December 26 as compared to vote on
October 31 and, especially, November 21. The oncoming election is expected
to comply with generally accepted standards of fair election.

The CVU welcomes positive amendments to the legislation dealing
with organization of the election process and voting procedures. Given the
current political situation, these amendments would prevent utilization of
falsification techniques, which were adopted on October 31 and November 21.
The said novelties have the following major advantages:
- Reduction of the numerical strength of territorial and polling
station commission, extraterritorial principle of formation of commissions,
limited terms and more complicated mechanisms for expelling commissioners,
which will simplify activities of commissions and improve their professional
level;
- Real parity of both candidates in composition and management of
territorial and polling station commissions, aimed at intensification of
mutual control of commissioners;
- Closer control over electoral registers from the part of
commissioners and clarification of such lists by rayon registry offices for
identification of people deceased after March 31, 2002. Thus, some
registers-related problems will be resolved;
- The scheme of real-time delivery of the preliminary data on
turnover to the Central Election Commission will minimize the danger of
adding ballots during the vote tabulation;
- Twofold reduction (from 10 to 5%) of revealed surplus of ballots
giving reasons for recognition of the voting results at a polling station as
invalid;
- Limited possibilities for misuse of absentee certificates.

At the same time, the CVU realizes that individual amendments would
complicate procedure of declaration of will for some voters because of
limitations imposed on absentee voting and voting at home. The CVU calls
voters to show patience and tolerance and do their best for execution of
their voting rights.

The CVU appreciates first steps of the Central Election Commission on
organization of the election process and motions to electoral laws initiated
by the CEC. At the same time, the CEC faces challenges of timely and due
formation of election commissions, electoral registers, printing ballot
papers etc. The CVU reminds the CEC on their responsibilities before the
Ukrainian people and world community for restoration of trust in the
election as the main institution of democratic formation of power.

The CVU recommends the CEC to post on-line results of voting at polling
stations and constituencies in Internet for prevention of possible
infringements. In addition, for minimization of manipulations with absentee
certificates, the CEC should exercise strict control over their issuance and
utilization, open such data with indication of specific constituencies. For
improving oversight of the Election Information and Analytical System, the
CVU proposes creation of the oversight commission comprising representatives
of candidates and major international observation missions.

Data of the CVU's monitoring indicates on more objective and balanced
coverage of political developments in central and regional media outlets,
including public ones. The majority of printed and electronic media present
different opinions. They terminated publication of materials being
distributed from informational departments of state administrations and the
Administration of the President. At the same time, some media remain biased
in their coverage; they publish unfair information on candidates and
practice "black PR".

The CVU expects the number of problems related with formation of territorial
and, especially, polling station commission. First, teams of candidates in
different regions are in shortage of staff for work in different regions.
Partly, this problem may be resolved by including persons residing within
other constitutions and stations, into commissions. The monitoring of the
CVU demonstrates that the candidates' teams form databases of commissioners
being ready for fieldwork in regions. The CVU does not rule out that such
practice would cause tension during organization of the vote process and
voting.

At the same time, V.Yanukovych' HQs are confronted with mass resignations of
authorized representatives of Yanukovych in Western and Eastern regions,
which complicate the procedure of submission candidates for members of
polling station commissions to territorial election commissions. They should
register other authorized representatives without delay or make authorized
persons in all-national constituency submit relevant submissions. Data of
the CVU shows that commissioners, who used to represent candidates Vitrenko
and Symonenko, are engaged to commissions as representatives of Yanukovych
in some oblasts.

The CVU calls HQs of candidates to refuse from nomination of persons being
guilty in gross violations and falsifications during vote on October 31 and
November 21, to commissions, and the election commission of higher level -
to refuse from registration of such commissioners.

Electoral registers may constituent the specific problem. Poor-quality
electoral registers, being used on October 31, have been taken as a basis
for development of electoral registers on December 26. The CVU warns that
amendments and alterations made to electoral registers between the first and

second rounds may be missed in new lists. So, the CVU resumes the action
"Find Your Name" and calls citizens to visit polling stations from December
20 to December 25 for clarification of electoral registers.

The most widespread violation during the first week of the campaign became
agitation of public officials in favor of Viktor Yanukovych. Such facts
primarily occurred in Luhansk, Donetsk, Odesa, Kharkiv (before the head of
oblast state administration Yevhen Kushnaryov' going on leave) oblasts, and
Sevastopol. The CVU believes that such acts constitute infringement of
clause 2 of paragraph 1 of Article 64 of the Law On Election of the
President of Ukraine.

In particular, head of Sevastopol city administration L.Zhunko participated
in rallies in support of Viktor Yanukovych. Moreover, almost all officers of
the state administration and deputies of all levels were present at meeting
in working hours.

On December 11, head of Luhansk oblast state administration Viktor Tykhonov
and head of the main department of culture of Luhansk oblast state
administration Mykhailo Holubovych delivered their speeches at the meeting
in support of V.Yanukovych in Luhansk.

At the same time, the CVU points out that officials of many oblasts have
terminated illegal interference in the election process, and those who
worked for HQs of candidates, have stopped their activities.

HQs of Yanukovych in eastern, northern, and central oblasts are formed on
the basis of regional offices of the Party of Regions and the Social
Democratic Party (united) instead of local state administrations, as it was
before. The process is complicated; in some oblasts, observers of the CVU
failed to find any representatives of Yanukovych' HQs. However, local
authorities sometimes show negligence in organization of the election
process. Many heads of local authorities are "on sick leaves".

RISKS WHICH MAY AFFECT THE VOTING
The CVU notes following risks, which may affect the democratic nature
of voting on December 26:

- Disruption of the election process at individual polling stations
through sabotage of organization of voting and vote tabulation from the part
of commissioners, provocation incidents and attacks on polling stations;
- Including persons who committed violations during voting on
October 31 and November 21, into commissions as representatives of
both candidates;
- Pressure, intimidation, violence against and bribing of
commissioners and observers;
- Poor qualification level of commissioners and their agitation in
favor of candidates;
- Poor quality of electoral registers, putting non-existing persons
into the lists;
- Manipulations from the side of management of medical institutions
during collection of information on patients;
- Pressure from the part of heads of penal and reformatory
institutions (isolation wards and jails), commanders of military units,
deans of educational institutions, as well and direct control over
declaration of will of prisoners, servicemen, and students;
- Manipulations with applications for vote at home and controlled
nature of such voting;
- Mass appeals against voting results of voters allegedly deprived
from the right to vote because of the complicated procedure of absentee
voting and voting at home. -30- [Action Ukraine Monitoring Service]
-------------------------------------------------------------------------
Committee of Voters of Ukraine, P.B. 5, 01135, Kyiv-135
tel./fax: (044) 490-61-35; E- mail: cvu@cvu.kiev.ua
LINK: http://www.cvu.org.ua
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ACTION UKRAINE REPORT-04, No.262: ARTICLE NUMBER NINE
Suggested articles for publication in the Report are always welcome
=========================================================
9. BRITISH COMPANY ALLOWED TO PURCHASE A MAJOR
STAKE IN UKRAINIAN CAR PLANT IN LUTSK

Interfax-Ukraine news agency, Kiev, in Russian, 17 Dec 04
BBC Monitoring Service, UK, in English, Thursday, Dec 17, 2004

KIEV - The Antimonopoly Committee of Ukraine has allowed the SV Motors
Ltd company (United Kingdom) to buy shares in the Lutsk car plant (LuAZ).
This will allow the company to have the controlling stake in excess of 50
per cent in the Ukrainian company's top management body. Interfax-Ukraine
learnt this from the press service of the Antimonopoly Committee. [Passage
omitted: background]

The British company invested in a programme for manufacturing lorries and
buses at LuAZ. The programme was approved by the government in September
2003 and then cancelled with a presidential decree in October of the same
year. This November, following repeated requests by the plant and its
investors to resume the investment programme, [President Leonid] Kuchma
revoked his decision banning the programme. [Passage omitted: description
of LuAZ]

According to the State Commission for Securities and the Stock Market, in
November 2004 LuAZ held a 66.67-per-cent stake in the company and the
Ukravtoholding [Ukrainian car holding company] held a 16.05-per-cent stake.
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER TEN
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10. UKRAINIAN AG POLICY MINISTER SLAUTA RESIGNS

Ukrainian News Agency, Kyiv, Ukraine, Thu, Dec 16, 2004

KYIV - Agricultural Policy Minister Viktor Slauta has resigned. Deputy
Prime Minister Ivan Kyrylenko disclosed this to Ukrainian News. According
to Kyrylenko, Slauta decided to resign because the Cabinet of Ministers will
be dissolved after election of the new president of Ukraine.

Kyrylenko added that Slauta will now return to the parliament as a
parliamentary deputy. "He applied a letter of resignation to the President
due to transfer to the job in the parliament. This step is logical and I
understand him," Kyrylenko said. He noted that Slauta was a good Minister.
"I'm satisfied with join work [with him], and think farmers are also
satisfied," he said.

As Ukrainian News earlier reported, President Leonid Kuchma appointed
Slauta as Ukraine's Agricultural Policy Minister in January. Slauta, 52, is
also a parliamentary deputy and the deputy chairman of the Parliamentary
Committee for Nation-Building and Local Self-Government. He was
appointed as the Donetsk region's deputy governor in charge of agriculture
in 1997. -30- [The Action Ukraine Report Monitoring Service]
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER ELEVEN
Letters to the editor are always welcome
=========================================================
11. UKRAINE: EBRD DECIDES TO PROVIDE USD 200 MILLION
FOR FINANCING SMALL, MEDIUM, & MICRO BUSINESSES

Ukrainian News Agency, Kyiv, Ukraine, December 16, 2004 (15:22)

KYIV - The board of directors of the European Bank for Reconstruction and
Development (EBRD) approved a USD-200-million program for financing small,
medium, and micro businesses in Ukraine on December 14. The press service of
the EBRD disclosed this to Ukrainian News. "The board of directors of the
EBRD approved a framework agreement for financing small, medium, and micro
businesses worth USD 200 million on December 14, 2004," the press service
said.

This program is expected to be realized directly through Ukrainian
commercial banks without government guaranties or the participation of the
National Bank of Ukraine. The relevant agreements with Ukrainian commercial
banks under this program are expected to be concluded in 2005. The money
will be disbursed after the signing of the relevant agreements between the
EBRD and borrowers.

The EBRD's previous credit lines for financing small and medium businesses
(MSP1 and MSP2) were provided through the National Bank of Ukraine and
under government guaranty. MSP1 was signed in 1994 and was implemented
until 2000. During this period, USD 135 million from the credit line was
used to finance 155 projects. MSP2 was signed in 1998 and is still being
implemented. The USD-88-million program is serviced by eight banks, namely
Azhio, Aval, VABank, Nadra, Forum, Ukrsotsbank, the International
Commercial Bank, and Kredytprombank. -30-
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER TWELVE
Letters to the editor are always welcome
=========================================================
12. EBRD OPENS CREDIT LINE WITH UKRAINE'S MAJOR
BREWERY OBOLON FOR USD $10 MILLION

Ukrainian News Agency, Kyiv, Ukraine, Thu, December 16, 2004

KYIV - The European Bank for Reconstruction and Development has
granted to Ukraine's major brewery Obolon (Kyiv) an open-end credit worth
USD 10 million. Ukrainian News learned this from the EBRD press service.
This credit must be used to replenish working capital and, particularly, to
purchase barley.

"Obolon received an open-end credit worth USD 10 million from the EBRD
for replenishment of its working capital and, particularly, for the purchase
of barley," the press service said in a report. The report also reads that
an important element of the deal is the use by Obolon of warehouse
certificates for the grain kept at elevators as a key element of guarantees
on the EBRD loan. The sum total of the bank's investments in Ukraine
under 63 projects is EUR 1.5 billion.

As Ukrainian News reported, in November the European Bank for
Reconstruction and Development said it might loan USD 12 million to Obolon
for financing its working capital needs. The EBRD board was to finally
decide on the loan on December 14. Obolon increased production by 7.1%
or 4.3 million decaliters over 2002 to 61.1 million decaliters in 2003.

The most popular brands of the brewery are the Obolon Light beer and soft
drink Zhyvchyk. Analysts estimate the annual size of the beer market at
145-150 million decaliters. -30- [Action Ukraine Monitoring Service]
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER THIRTEEN
Letters to the editor are always welcome
=========================================================
13. EBRD TO LOAN DNIPROPETROVSK 20 MILLION EURO FOR
IMPROVING WATER-SUPPLY INFRASTRUCTURE

Ukrainian News Agency, Kyiv, Ukraine, Thu, December 16, 2004

KYIV - The board of directors of the European Bank for Reconstruction
and Development (EBRD) has approved EUR 20 million for improving
Dnipropetrovsk's water-supply and sewage infrastructure and services as
well as for a priority investment program. The press service of the EBRD
disclosed this to Ukrainian News.

"The board of directors of the EBRD has approved a provision of EUR 20
million for a priority investment program and improving water-supply and
sewage infrastructures and services in Dnipropetrovsk," the press service
said. The press service also stressed that this project is the first
municipal project in Ukraine that the EBRD is implementing under municipal
guaranty rather than state guaranty. The two sides must sign the relevant
agreement before the program can come into effect.

As Ukrainian News earlier reported, Dnipropetrovsk's Mayor Ivan Kulychenko
said in late 2003 that Dnipropetrovsk's Dniprovodokanal utility enterprise
aims to obtain an EBRD loan of EUR 20 million in 2004 for modernizing its
water- supply system. -30- [Action Ukraine Monitoring Service]
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER FOURTEEN
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14. UKRAINIAN MISSILE DESIGNER SHARES U.S. CONCERNS
ABOUT MISSILE FUEL RECYCLING

Interview with Volodymyr Kukushkikn by Oleksandr Perepelytsya
Narodna Armiya, Kiev, Ukraine, in Ukrainian Fri, 16 Dec 04
BBC Monitoring Service, UK, in English, Fri, Dec 17, 2004

KIEV - Volodymyr Kukushkin, the former chief designer of SS-24 missile
engines, has shared US concerns over a hydroblasting technology of solid
missile fuel recycling, which was approved by the Ukrainian authorities.
Hydroblasting is potentially dangerous and time consuming, which justifies
the unwillingness of the US Administration to fund this project, Kukushkin
says. Instead, he proposed burning the missile fuel at a training ground.

The following is the text of an interview with Kukushkin conducted by
Oleksandr Perepelytsya and published in the Defence Ministry's newspaper
Narodna Armiya on 16 December under the title "The chief designer is
authorized to warn..."; subheadings have been inserted editorially:

[The newspaper's introduction] Ukrainian President Leonid Kuchma's visit to
Pavlohrad, Dnipropetrovsk Region, in September meant to get going the
recycling of the engines of solid fuel intercontinental ballistic missiles.
The head of state had serious reasons to be worried: 5,000 tonnes of highly
explosive chemical substance were concentrated at chemical and mechanical
plants in the capital of western Donbass. Stabilizing components in the fuel
may no longer be active as the fuel's shelf life has expired. It is not
clear how the former fuel will behave if, say, lightning hits it or under
the pressure of water blast amounting to 1,000 atmospheres, which is
envisaged by the approved disposal technique of hydroblasting. The risk of
detonation during loading and transportation is also too high.

The chief designer of this model of missile engines and doctor of technical
sciences, Volodymyr Kukushkin, strongly opposes the above-mentioned
method of disposal. His letters with relevant calculations and estimates
have already been sent to all interested parties. Kukushkin's method is
faster, less expensive and, most importantly, not so risky.

RISKY TECHNOLOGY
[Perepelytsya] Mr Kukushkin, Narodna Armiya has repeatedly raised the issue
of safe disposal of the solid fuel engines SS-24 at the Pavlohrad chemical
plant. After we published our point of view the public interest in the issue
increased even further. The chosen method has its advantages, but science
still does not give a clear answer on safety guarantees if it is used. What
can you say about this?
[Kukushkin] I have closely been following this issue, including articles in
the press. I am familiar with the initial chemical and physical properties
of the missile fuel, I have access to results of laboratory studies and I
can state with full responsibility: the approved disposal programme
envisaging the method of hydroblasting is not acceptable from the viewpoint
of safety guarantees.
[Perepelytsya] Can you be more specific?
[Kukushkin] Currently both science and practice know only three ways of
disposing of solid missile fuel. They are: hydroblasting, burning in the
open and detonating in the open. Hydroblasting is not actually disposal. In
fact, this is not disposal but actually turning the fuel into a liquid. An
explanatory note to a feasibility study conducted at Dnipropetrovsk National
University states: "The disposal of the solid missile fuel using the
previously planned hydroblasting method, the fuel's processing into an
explosive substance for industrial use has been suspended due to the US
Administration which finances the fuel disposal and which has found this
method dangerous and economically inefficient." Instead, the US has proposed
two alternative methods: recycling each charge separately by detonation or
open burning of the charge at the training ground of the Pavlohrad
mechanical plant.
[Perepelytsya] Ukraine seems to be unhappy about the US project? I have
participated in a few meetings and briefings by the chemical plant
management, and they do not have fears that an uncontrolled detonation may
occur.
[Kukushkin] Ukrainian science shares conclusions and proposals of the US
Administration. Hydroblasting has resulted in two powerful explosions in the
USA. But they happened far from populated areas, and people were prepared
for them. But it is just a crime to allow similar things to happen in
Ukraine.
Dnipropetrovsk National University has even developed an alternative project
called `The technology of environmentally safe disposal of solid fuel
charges for SS-24 engines". But, in my opinion, the management of the
Pavlohrad chemical plant, which cannot be fully impartial in choosing the
disposal projects in this situation (jobs, financing), persistently supports
hydroblasting. At the same time, the factor of timing is being ignored:
hydroblasting programme will make the disposal programme last at least till
the end of 2010 or even longer. I know from my own experience that not a
single programme is financed by 100 per cent in this country. Meanwhile, the
fuel will by itself be transforming into a highly explosive mix with
unpredictable properties. This is because its stabilizing components will be
completely exhausted.
TIMING IS CRUCIAL
I also emphasize that the "environmentally safe disposal" proposed by the
university is expensive and does not take account of the time factor.
Creating an environmentally safe disposal facility will require constructing
and equipping special structures (a thermal accumulating gallery, a storage
pool, a smoke pumping station, an absorber, a gas holder, etc.). And this
will take both time and substantial funds. This country has none of them.
The factor of time is especially important in the situation we are facing.
Charges are increasingly losing their resistance to self-ignition. They are
becoming more sensitive to fluctuation of temperature, they are losing
anti-shock properties. Delaying their disposal may lead to unpredictable
consequences. In addition, continuous concentration of such a huge amount
of highly sensitive explosives at one place breaches all storage
regulations.
[Perepelytsya] It will be enough to recall the incident in Artemivsk [blasts
at ammunition warehouses], and when conclusion seemed to have been drawn
and every measure to prevent similar accidents in the future seemed to have
been taken, a similar tragedy happened in the Melitopol area. Unfortunately,
this list of catastrophes is not complete.
[Kukushkin] This is exactly what I say to my opponents. I would like to
discuss the disadvantages hydroblasting in detail. The method has been
studied quite well theoretically, but it has not been used in Ukraine in
practice. During hydroblasting water is pumped under the pressure of 1,000
and atmospheres or more. Significant forces, vibrations, shifts, friction
inevitably occur at the surface and inside the fuel, which is ruined
(atomized). This may provoke an explosion. Human factor should not be
ignored either, especially in conditions of the growing threat of terrorism.
Statistics of explosions at chemical enterprises is not in favour of the
chosen method either. Each of them can cause detonation, to say nothing of
thunderstorms and other unpredictable things.
[Perepelytsya] So the time of the fuel disposal should be minimized?
OPEN BURNING
[Kukushkin] This is the main reason for my concerns as the chief designer.
The time of recycling can be reduced only if the method of open burning is
used. However, in this case the problem of atmosphere pollution emerges. But
the same thing happened during numerous fire tests on the engines during
their development. They did not cause any noticeable negative impact on the
environment. According to studies conducted by specialists from the Pivdenne
design bureau, the emission of hazardous substances by the Dnieper thermal
power station in two hours of its operation in 1985-1989 was equal to
burning one engine in terms of environment pollution. After all, a
controlled process is better than uncontrolled.
There is one more point: the fuel used in the second and third stage engines
is environmentally safe. Hazardous pollution takes place only at the first
stage.
Other methods of the missile fuel elimination are also known: drowning
them in the 'dead' layers of the Black Sea that have high concentration of
hydrogen sulphide or burning with further neutralizing. All of them have
serious disadvantages.
[Perepelytsya] Is the open burning method the best among those tested
during fire tests?
[Kukushkin] Yes, but nozzle units were used during burning at the time. I
propose burning without using nozzle units. It reduces the risk of
detonation which may be caused by a sharp increase in pressure during the
launch. In addition it reduces pressure during burning. This method of
elimination is widely used in the USA. I first proposed it back in 1997.
Further storing of the fuel will result in its ageing, and in increased
probability of detonation during its transportation, loading and other
essential procedures.
Everything stated above gives grounds to draw a conclusion that it is
feasible to burn the fuel of all three stages at an training ground without
nozzle units. I suggest the funds meant for financing sophisticated
technical buildings, cleaning devices and temporary structures, be spent on
a sewage system in Pavlohrad, on improving water supply, for building a
bypass road, etc. This will be a kind of compensation for a temporary
increase in the highest permissible concentrations of hazardous substances.
[Perepelytsya] Does your project guarantee a 100-per-cent safety?
[Kukushkin] No. Detonation is not ruled out if our method is used either.
But it should be noted that this will be just a detonation of a single
charge at a training ground away from populated areas rather than at a
huge warehouse where many stages are kept. The population of Pavlohrad
and the chemical plant management should understand that the method of
open burning is the cheapest one, it is quick the job can be done within
one year and reliable in comparison with others. -30-
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER FIFTEEN
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15. CEC DECIDES TO ESTABLISH RESULTS OF RUNOFF REVOTE
ON PRESIDENTIAL ELECTION AFTER PERIOD FOR
APPEAL OF ELECTION PROGRESS ENDS

Ukrainian News Agency, Kyiv, Ukraine, Fri, December 17, 2004

KYIV - The Central Election Commission has canceled its previous decision
to establish results of revote of the second round of presidential election
by January 10, 2005, and decided to establish results after the period for
appeal of election progress is over. Head of the CEC press service Zoia
Sharikova informed Ukrainian News about this.

She said that the Central Election Commission was governed by the complaint
of presidential candidate Viktor Yanukovych to the Supreme Court, which the
candidate sent on December 16.

"In this connection... the CEC approved a resolution on making changes to
the Calendar plan of the major organizational events involving preparation
and conduct of December 26 re-run of the second round of Presidential
elections, approved by the resolution of the Central Election Commission on
December 10," she said.

The commission replaced words on establishing results "from December 31 to
January 10, 2005 inclusively" with words "in deadlines stipulated by article

15 of the Law of Ukraine "'On Particulars of Application of the Law on
Election of the President of Ukraine' During Revote on December 26, 2004."
Moreover, part 3 of the Article 15 "'On Particulars of Application of the
Law on Election of the President of Ukraine' During Revote on December 26,
2004" reads that establishment of results of presidential election by the
CEC is held no sooner than the end of period for appeal and consideration of
complaints by relevant election commission and courts stipulated by the law.
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16. UKRAINE: PGO OPENS CRIMINAL CASE ON FALSE VOTE
COUNT AND ELECTION RETURNS ANNOUNCEMENT BY CEC

Ukrainian News Agency, Kyiv, Ukraine, Wed, December 16, 2004

KYIV - The Prosecutor General's Office (PGO) has instituted criminal
proceedings on the facts of abuse of authority by the Central Election
Commission (CEC) members, which led to deliberate incorrect vote counting
and announcing of false results of the presidential election. The PGO press
service reported this to Ukrainian News.

According to it, the criminal proceedings was instituted on signs of the
crime envisaged by part 2 of article 364 of the Criminal Procedures Code
"Abuse of Power of Official Position, Which Led to Grave Consequences"
and part 3 of article 158 "Incorrect Use of Ballot Papers, Election
Documents Forgery or False Vote Tabulation or False Announcement of
Election Returns."

Part 2 of article 364 and part 3 of article 158 envisage punishment in form
of imprisonment for the period from five to eight years with deprivation of
the right of holding certain posts or carrying certain activity for the
period up to three years. Pre-trial investigation on the case is
commissioned to the chief investigation department of the PGO.

Action was brought following the examination of the relevant presentation
submitted to the PGO by the Supreme Court, which declared unlawful the
CEC acts on the establishment of the runoff presidential election returns
and cancelled the CEC resolution declaring Prime Minister Viktor
Yanukovych the president-elect, the press service reported.

As Ukrainian News reported earlier, on December 8, the Verkhovna Rada
appointed Valerii Sheludko, Zhanna Usenko-Chorna, Anatolii Pysarenko and
Mykola Melnyk as members of the Central Electoral Commission instead of
Valerii Bondyk, Volodymyr Danylevskyi, Mykola Rybachuk and Serhii Kivalov.

Yaroslav Davydovych, Yurii Donchenko, Serhii Dubovyk, Ihor Kachur, Ruslan
Kniazevych, Andrii Mahera, Valentyna Zavalevska, Mykhailo Okhendovskyi,
Bronislav Raikovskyi, Maryna Stavniichuk and Oleksandr Chupakhin preserved
their posts at the CEC. -30- [Action Ukraine Report Monitoring Service]
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER SEVENTEEN
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17. OSCE INCREASES NUMBER OF OBSERVERS ON REPEATED
RUNOFF VOTE ON UKRAINIAN PRESIDENTIAL
ELECTION FROM 600 TO 1,000

Ukrainian News Agency, Kyiv, Ukraine, Wed, December 16, 2004

KYIV - The Organization for Security and Cooperation in Europe has
increased the number of its observers from 600, who monitored the first
two rounds of presidential election, to 1,000 on repeated vote of the second
round. This was disclosed in the statement of the OSCE press service, the
text of which Ukrainian News obtained.

"The OSCE Office for Democratic Institutions and Human Rights has
enlarged its monitoring mission... Over 1,000 observers will watch voting
procedures..." the press service wrote.

Like before, the mission for supervision will watch compliance of the
campaign and election in Ukraine to international democracy standards.
The mission will consist of 25 international experts, 55 long-term
observers, who monitor election campaign, and over 1,000 short-term
observers, who will observe on voting day on December 26.

As Ukrainian News earlier reported, the mission has previously been the
largest in the OSCE history and consisted of 12 experts, 45 long-term
observers and 600 short-term observers. -30-
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER EIGHTEEN
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18. YUSHCHENKO NOT RULING OUT ATTEMPT BY KUCHMA
TO OBSTRUCT REPEAT OF PRESIDENTIAL ELECTION RUNOFF

Ukrainian News Agency, Kyiv, Ukraine, Wed, December 16, 2004

KYIV - The Our Ukraine coalition's leader and presidential candidate Viktor
Yuschenko has said that it is possible that President Leonid Kuchma has the
intention of obstructing the re-run of the second round of this year's
Ukrainian presidential elections, which is scheduled for December 26.
Yuschenko was speaking to journalists in Kyiv.

"One can get the impression that Ukraine's President Kuchma has no keen
desire to hold the December 26 elections," Yuschenko said. Yuschenko
attribute his impression to the fact that Kuchma is still refusing to
approve the parliament's decision to allow the Ukraina printing press to
print ballot papers for the re-run of the second round of the presidential
elections.

As Ukrainian News earlier reported, Yuschenko's election campaign
headquarters is forecasting that the authorities will make an attempt to
prevent the re-run of the second round of this year's presidential elections
from taking place in certain constituencies. -30-
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ACTION UKRAINE REPORT-04, No. 262: ARTICLE NUMBER NINETEEN
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19. YUSHCHENKO ACCUSES YANUKOVYCH'S CAMPAIGN
TEAM OF PLANNING TO OBSTRUCT REPEAT OF UKRAINE'S
PRESIDENTIAL ELECTION RUNOFF

Ukrainian News Agency, Kyiv, Ukraine, Wed, December 16, 2004

KYIV - The Our Ukraine coalition's leader and presidential candidate Viktor
Yuschenko has accused the election campaign headquarters of Prime Minister
Viktor Yanukovych of intending to obstruct the re-run of the second round of
this year's Ukrainian presidential elections. Yuschenko made the accusation
while addressing journalists in Kyiv.

"The main aim of Yanukovych's team is to do everything to ensure that the
December 26 elections do not take place," Yuschenko said.

According to Yuschenko, for this purpose provocations are being prepared in
the eastern regions of Ukraine for the election period while plans are being
made to launch numerous lawsuits aimed at delaying or nullifying the results
of the elections.

As Ukrainian News earlier reported, Yuschenko's election campaign
headquarters is forecasting that the authorities will make an attempt to
prevent the re-run of the second round of this year's presidential elections
from taking place in certain constituencies. -30-
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