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Action Ukraine Report

"THE ACTION UKRAINE REPORT - AUR"
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 - AUR" - Number 483
E. Morgan Williams, Publisher and Editor
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C. and Kyiv, Ukraine, THURSDAY, May 12, 2005

THE ACTION UKRAINE REPORT (AUR) DISTRIBUTION LIST

NOTE: Names and e-mail address for The Action Ukraine Report
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to sign up for the free AUR service. Ukraine is where the action is,
do not miss the action during year 2005. EDITOR

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

1. UKRAINE RECEIVES STANDARD & POOR'S UPGRADE
By Päivi Munter, Financial Times
London, UK, Thu, May 12 2005

2. UKRAINIAN DAIRY COMPANY, UKRPRODUCT, SALES AHEAD 50%
By David Blackwell, Financial Times
London, United Kingdom, Thu, May 11 2005

3. TYMOSHENKO WANTS ENERGY MINISTER TO PREPARE FEASIBILITY
REPORT ON DEVELOPMENT OF NUCLEAR-FUEL CYCLE
Ukraine currently buys nuclear fuel from Russia
Interfax-Ukraine, Kyiv, Ukraine, Tuesday, May 10, 2005

4. VICE PREMIER OLEH RYBACHUK URGES CAUTIOUS AND
PRUDENT APPROACH TO CHANGES FOR SPECIAL ECONOMIC ZONES
Yaroslav Yadlovskiy, Ukrinform, Kyiv, Ukraine, May 6, 2005

5. YUSHCHENKO APPOINTS RYBACHUK TO REPLACE DERKACH
AS GOVERNOR OF BLACK SEA BANK FOR TRADE & DEVELOPMENT
By Viktor Riasnyi, Ukrainian News Agency, Kyiv, Ukraine, Mon, May 9, 2005

6. SHELL, NAFTOGAZ SIGN PACT TO SEARCH FOR GAS IN
UKRAINE'S DNIEPR-DONETS BASIN
AFX Europe (Focus), London, UK, Tue, May 10, 2005

7. 200,000 UKRAINIAN LABOR MIGRANTS IN CZECH REPUBLIC
Only 60,000 have legal status
Ukrainian News Agency,Kyiv, Ukraine, Tue, May 10, 2005

8. A UKRAINIAN GRIN
Working abroad: Illicit work in the European Union
Comment and Analysis from Jan Zappner, Berlin
Das weiße Lächeln der Ukraine
Cafe Babel, European current affairs magazine
Website that encourages trans-European debate
Europe, Friday, April 29, 2005

9. KYIV DIVIDED ON HOW FAR TO GO WITH RE-PRIVATIZATION
ANALYSIS: By Taras Kuzio, Eurasia Daily Monitor
Volume 2, Issue 92, The Jamestown Foundation
Washington, D.C., Wednesday, May 11, 2005

10. PRIME MINISTER TIMOSHCHENKO TACKLES MEAT PRICES
Meat is the only regular luxury item in a family's budget
New Europe, Athens, Greece, Monday, May 9, 2005

11. UKRAINE GASOLINE PRICES: AGAIN A CRISIS, RESERVE NEEDED
ANALYSIS: Andrey Voltornist, Ukraine Analyst
IntelliNews - Ukraine This Week
Kyiv, Ukraine, Wednesday, May 11, 2005

12. EBRD CAN LOAN BUNGE AFFILIATES UP TO $58 MILLION
FOR UKRAINIAN PROJECTS
UNIAN, Kyiv, Ukraine, Tuesday, May 10, 2005

13. UKRAINIAN PRIME MINISTER WANTS NIKOPOL FERROALLOY
PLANT BACK IN STATE OWNERSHIP
Interfax-Ukraine news agency, Kiev, in Russian 1204 gmt 11 May 05
BBC Monitoring Service - United Kingdom; May 11, 2005

14. LVIV FINANCIAL FIRM RAISING MONEY THROUGH THE BOND
MARKET TO SUPPORT MEDIUM-SIZED BUSINESSES
By Alla Vetrovcova, FirsTnews, Kyiv, Ukraine, Fri, May 06, 2005

15. UKRAINE RECEIVES G8 GOVERNMENTS PLEDGE OF 260 M DOLLARS
FOR NEW SHELTER OVER THE CHERNOBYL NUCLEAR PLANT
UNIAN news agency, Kiev, in Ukrainian 1200 gmt 10 May 05
BBC Monitoring Service, UK, in English, May 10, 2005

16. OLD LEFTIST INTERPRETATION OF THE 1945 YALTA CONFERENCE
LETTER TO THE EDITOR, From Jean-Pierre Cap
The Action Ukraine Report #483, Article 14
Washington, D.C., Thu, May 12, 2005

17. 'KYIV CHAMBER CHOIR' LIVE CONCERT CD RELEASED
First live concert CD by the world-renowned Kyiv Chamber Choir
"The Sounds of Kyiv"
Andrew Witer, President, Dotcom Recordings Inc.
Toronto, Ontario, Canada, May, 2005

18. "SAYING SORRY"
OP-ED: By Anne Applebaum, Columnist
The Washington Post, Washington, D.C.
Wednesday, May 11, 2005; Page A17

19. UKRAINE: ORANGE RIBBONS TO POLICEMEN'S CAPS
DURING EUROVISION 2005
Ukrainian News Agency, Kyiv, Ukraine, Tue, May 10, 2005

20. TATARS TO GET THREE CABINET POSTS IN UKRAINE'S CRIMEA
Source: Black Sea TV, Simferopol, in Russian 1700 gmt 10 May 05
Provider: BBC Monitoring, Date: May 10, 2005 (17:00)

21. DEPUTY PREMIER OLEH RYBACHUK NOTES EU'S GROWING
TRUST IN UKRANE
Interview with Oleh Rybachuk by Roman Kulchynskyy
Kontrakty, Kiev, in Ukrainian 9 May 05; p 28-30
BBC Monitoring Service, UK, in English, Wed May 11, 2005

22. UKRAINIAN CATHOLIC EDUCATION FOUNDATION: SAVE THE DATES
Rev. Borys Gudziak, Rector of the Ukrainian Catholic University,
Lviv will visit in the United States in November
Rev. Deacon Ihor Koshyk, Ukrainian Catholic Education Foundation
UCEF, Chicago, Illinois, May, 2005

23. UKRAINIAN LANGUAGE IMMERSION WEEKENDS
AT STATE UNIVERSITY OF NEW YORK IN NEW PLATZ
June 10-12, 2005; July 8- 10, 2005; July 22-24, 2005
Christine (Xpuctia) Demidowich, Livingston, NJ, May 2005
===============================================================
1. UKRAINE RECEIVES S&P UPGRADE

By Päivi Munter, Financial Times
London, UK, Thu, May 12 2005

Ukraine's credit ratings were upgraded yesterday by Standard & Poor's,
which cited improved prospects for a transparent economy and the rule
of law in the country following last year's popular uprising that brought
Viktor Yushchenko the presidency.

S&P raised Ukraine's foreign currency rating by one notch to the speculative
grade category of BB- from B+ and the local currency rating by two notches
to BB from B+. The outlook is stable. The move brought S&P's foreign
currency rating to par with the assessment by rival Fitch, while Moody's has
Ukraine one notch lower at B1 with a stable outlook.

Helena Hessel, credit analyst at S&P, said: "Ukraine's improved
creditworthiness reflects an enhanced political and policy environment.
The new president . . . advocates transparency, the rule of law and
democratic values, which should lead to the implementation of political,
institutional and structural reforms necessary to transform Ukraine into a
country with an open, democratic political system and a market-based
economy."

Ukraine's economy has been growing strongly over the past few years,
although from a low base. Growth has flagged since the new regime took
over as uncertainty on ownership of vital industries has hit business
investment.

The government is yet to unveil the list of privatised state companies it
plans to reauction. During the administration of the previous president,
Leonid Kuchma, many large companies were sold to well-connected
businessmen at below-market prices.

S&P said the government faced challenges from rising inflation and
heavy pressure on government spending. -30-
===============================================================
2. UKRAINIAN DAIRY COMPANY, UKRPRODUCT, SALES AHEAD 50%

By David Blackwell, Financial Times
London, United Kingdom, Thu, May 11 2005

Ukrproduct Group, the Ukrainian dairy company floated on Aim in February,
lifted sales by more than 50 per cent last year. Sergey Evlanchick, chief
executive, said the flotation had proved well timed to benefit from the
Orange Revolution, which saw Viktor Yushchenko become president of the
country this year.

About 60 per cent of Ukrainian household budgets is spent on food. Incomes
are rising, helped by the introduction of a minimum wage and an increase in
state pensions. "Consumption habits are changing," said Mr Evlanchick.
"Consumers are moving from bulk goods to packaged goods, which are
perceived as being better."

Turnover rose from £17.6m to £27.1m in the 12 months to December 31.
Pre-tax profit increased by £500,000 to £1.76m. First-quarter sales were up
30 per cent, Mr Evlanchick said. The company has two plants in western
Ukraine producing soft processed cheese, butter and skimmed milk powder.
It also has its own vehicle fleet and national distribution system.

Mr Evlanchick said the flotation had given the company more flexibility and
better bargaining power when negotiating debt. It had enabled the company
to consider expanding into the production of hard cheese and to look at
possible acquisitions. The company, which was advised by WH Ireland,
raised more than £5m through a placing at 53½p a share.

The shares closed yesterday up 4½p at 67½p, giving it a market
capitalisation of £26m. It used the proceeds to pay down debt, boost working
capital and to increase capital expenditure. WH Ireland is forecasting sales
to expand to £37m this year, generating pre-tax profit of £2.7m. Earnings
per share last year were 4.8p, up from 3.7p. The board will consider the
possibility of paying a dividend this year. -30-
===============================================================
3. TYMOSHENKO WANTS ENERGY MINISTER TO PREPARE FEASIBILITY
REPORT ON DEVELOPMENT OF NUCLEAR-FUEL CYCLE
Ukraine currently buys nuclear fuel from Russia

Interfax-Ukraine, Kyiv, Ukraine, Tuesday, May 10, 2005

KYIV - Ukrainian Premier Yulia Tymoshenko has ordered the Energy Ministry
to draw up a feasibility study on developing a Ukrainian-based nuclear-fuel
cycle. Tymoshenko instructed the ministry to do so at a meeting on the
development of Ukraine's fuel and energy complex until 2030 on May 6,
Energoatom's press service reports.

The expediency of creation of Ukraine's own nuclear-fuel cycle is based on
the presence of its own deposits of uranium and zirconium on the one hand
and the depletion of world resources of uranium, and rising prices for
nuclear fuel on the other hand.

According to the press service, Yulia Tymoshenko also ordered the ministry
to study the possible growth in the share of Ukraine's NPPs in the total
balance of electricity production in Ukraine before 2030.

Ukraine currently buys nuclear fuel from Russia. -30-
===============================================================
4. VICE PREMIER OLEH RYBACHUK URGES CAUTIOUS AND
PRUDENT APPROACH TO CHANGES FOR SPECIAL ECONOMIC ZONES

Yaroslav Yadlovskiy, Ukrinform, Kyiv, Ukraine, May 6, 2005

UZHGOROD - There are absolutely no grounds to accuse foreign investors
within the Transcarpathia Special Economic Zone of anything, Vice Premier
for Eurointegration Oleh Rybachuk told journalists in Uzhgorod on Friday,
May 6. The investors have been engaged in production, introduction of new
technologies, creation of many new jobs, he noted.

As he intimated, Ukraine's special economic zones must be dealt with very
cautiously and prudently. Now, a message must be sent to the investors to
reassure them about security of their capital in Ukraine.

The western investors, Mr Rybachuk noted, are very pragmatic people. They
will praise us for our democratic attainments, but if they find that working
in Ukraine is unrewarding they will not hesitate to withdraw their capital
and invest it elsewhere, Mr Rybachuk told the journalists.
===============================================================
5. YUSHCHENKO APPOINTS RYBYCHUK TO REPLACE DERKACH
AS GOVERNOR OF BLACK SEA BANK FOR TRADE & DEVELOPMENT

By Viktor Riasnyi, Ukrainian News Agency, Kyiv, Ukraine, Mon, May 9, 2005

KYIV - President Viktor Yuschenko has relieved ex-Minister of Economy
Mykola Derkach of his duties as governor of the management board of
the Black Sea Bank for Trade and Development, and appointed Deputy
Prime Minister Oleh Rybachuk to replace him. This was disclosed in the
presidential decree "On making amendments to article 1 of Decree of the
President of Ukraine of February 26, 2002, No. 181," of April 30, 2005.

"Appoint Rybachuk Oleh Borysovych, Deputy Prime Minister of Ukraine,
as governor of the Black Sea Bank of Trade and Development, relieving
Derkach N.I of these duties," it is stated in the decree.

As Ukrainian News earlier reported, on March 31, 2004, then-President Leonid
Kuchma relieved ex-Economy Minister Valerii Khoroshkovskyi from the duties
of administrator in the managing board of the Black Sea Bank for Trade and
Development and appointed Derkach to replace him.

In July 2003, Kuchma relieved ex-Economy Minister Oleksandr Shlapak from
the duties of administrator of the bank, and appointed horoshkovskyi to
succeed him.

The Black Sea Bank for Trade and Development, which was created in 1998
by 11 countries of the Black Sea region for fostering expansion of trade and
economic relations between constituting countries, started to operate on
June 1, 1999. The statutory fund of the bank is nearly USD 1.3 billion.

The corresponding shares of the co-founders in the bank's statutory fund
consist as follows: Russia, Turkey and Greece each has 16.5% shares,
whereas Ukraine, Bulgaria and Romania each has 13.5% stake and Armenia,
Azerbaijan, Georgia, Moldova and Albania each has a 2% stake. -30-
===============================================================
6. SHELL, NAFTOGAZ SIGN PACT TO SEARCH FOR GAS IN
UKRAINE'S DNIEPR-DONETS BASIN

AFX Europe (Focus), London, UK, Tue, May 10, 2005

LONDON - The Royal Dutch/ Shell Group and Naftogaz said they signed
a cooperation agreement to explore the Dniepr-Donets gas basin in
Ukraine.

The pact covers an area of more than 30,000 square kilometres. The
basin, according to geological data, is believed to contain significant
undiscovered resources of natural gas, the companies said in a joint
statement.

"This cooperation agreement with Naftogaz marks Shell's entry into the
Ukrainian upstream," said Matthias Bichsel, head of exploration at Shell.
"North-eastern Ukraine is close to important regional gas markets, so we
are excited to be beginning what should be a long and fruitful cooperation
with Naftogaz," he said. mbe/jc -30-
===============================================================
7. 200,000 UKRAINIAN LABOR MIGRANTS IN CZECH REPUBLIC
Only 60,000 have legal status
]
Ukrainian News Agency,Kyiv, Ukraine, Tue, May 10, 2005

KYIV - Ukraine's Foreign Affairs Minister Borys Tarasiuk and the Czech
Republic's Foreign Affairs Minister Cyril Svoboda have discussed Ukrainian
labor migrants in the Czech Republic. Tarasiuk and Svoboda announced this
to journalists. "It is a serious problem," Tarasiuk said.

According to him, unofficial information indicates that there are about
200,000 Ukrainian labor migrants in the Czech Republic, with only 60,000 of
them having legal status. Tarasiuk stressed that Ukraine intends to create
conditions for preventing Ukrainians from traveling abroad in search of
jobs. However, Ukraine intends to provide legal protection for those who are
already working abroad.

Svoboda said that the situation involving Ukrainians working illegally in
the Czech Republic could not be considered normal. "Illegal work in the
Czech Republic cannot remain the standard," Svoboda said.

Tarasiuk told journalists that the Foreign Affairs Ministry has proposed
that the Cabinet of Ministers send all issues related to ties to Ukrainians
abroad to the competence of the Foreign Affairs Ministry because only the
Foreign Affairs Ministry has the necessary infrastructure for this.

According to Tarasiuk, the Foreign Affairs Ministry intends to cooperate,
particularly with the Labor and Social Policy Ministry, on issues involving
protection of the rights of Ukrainian labor migrants abroad.

Tarasiuk and Svoboda also discussed intensification of the political
dialogue between Ukraine and the Czech Republic and facilitating contacts
between Ukrainian and Czech nongovernmental organizations. Tarasiuk
stressed that he and Svoboda discussed economic cooperation only
superficially because Svoboda would still meet with First Deputy Prime
Minister Anatolii Kinakh.

Tarasiuk and Svoboda also discussed prospects for cooperation between
the Vishegrad Group (the Czech Republic, Slovakia, Poland, and Hungary)
and the GUUAM organization (Georgia, Ukraine, Azerbaijan, Moldova, and
Uzbekistan). As Ukrainian News earlier reported, Svoboda is in Ukraine on
an official visit. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
8. A UKRAINIAN GRIN
Working abroad: Illicit work in the European Union

Comment and Analysis from Jan Zappner, Berlin
Das weiße Lächeln der Ukraine
Cafe Babel, European current affairs magazine
Website that encourages trans-European debate
Europe, Friday, April 29, 2005

For many Ukrainians, illicit work in the European Union is the only escape
from misery. Although housekeeping work in Italy or smuggling cigarettes
to Poland can bring real material gains, economic migration tears families
apart

Luba's hearty laugh fills the taxi, as it lurches towards Ukraine along the
uneven asphalt road in Przemysl, Poland's south-eastern border town.
She then nods towards the passenger seat where her daughter Maria
stares sadly out the window, "She fell in love while working in Poland.
That's her version of East-West rapprochement!" Like any other mother,
she hopes for a brighter future for her daughters: "At home, the jobs don't
pay much. That's why they need to get used to working abroad."

In Vykoty, a small village in western Ukraine, people have had mixed
experiences with working abroad. Men tend to do construction work in the
Czech Republic or Portugal, while women head to Italy for caretaker and
domestic jobs. Even with salaries often well below the minimum wage,
these workers are able to take care of their families back home. The
spanking new houses dotting the countryside in Vykoty are just one
example of the fruits of their labour that are plain to see.

BUILDING A HOME

"We worked on our house for three years and spent $20,000 per floor,"
says 44-year-old Nadja. Nadja sits contentedly in a kitchen filled with
marble-veneered furniture that radiates a strange coolness. Both pride and
mischief light her face as she talks about having a bidet installed in her
bathroom, "I had to explain to some of my friends what exactly it [a bidet]
was and how to use it!" Becoming homeowners was a difficult process for
Nadja and her husband, Vladimir.

When Ukraine won independence from Russia in the early 90s, the couple
lost all their savings in a banking system collapse. "I just don't trust
banks anymore. I need to keep my money where I can see it," she whispers,
her voice betraying lingering traces of shock. Because the economic
situation continued to worsen, in 1996 she first headed to Poland for work.
There she held various jobs picking cherries, in construction and at a
bathtub factory. When the factory was forced to close, she began to sell
liquor and cigarettes.

For the past six years, she has stuck with the latter profession and earns
three dollars per carton of cigarettes and a dollar for every bottle of
vodka sold. "The point is that I can come home every weekend to see my
children and grandchildren," says Nadja. "I could never work in Italy," she
continues adamantly, "so many families have fallen apart because
someone went too far away."

VODKA AND LONELINESS

Vitali's marriage is still holding together - at least on paper. He sits in
his dim living-room before a glass of vodka. His brow is deeply furrowed
and his glassy blue eyes reveal deep melancholy. "I am 50-years-old,"
he says, "and no one here needs anyone like me." He gestures
emphatically with his thin arms and you get the idea that he wouldn't feel
especially useful in Vykoty either.

"My wife has been in Italy for the past five years. That's how long I've
been alone," he adds. The fact that the two are still married is unusual.
Many women meet men abroad, who help them find their footing in their
new country. Divorce is the next step.

Halina met her new husband in Italy: "I met Roman five days after my
arrival." She reaches over to wipe the nose of her one-year-old daughter.
"We had an Orthodox wedding two years ago, he's Ukrainian you see."
After marrying, he told her that she was really lucky to have spent so
little time in Italy before meeting him. Italian men often deride Ukrainian
women as whores. Halina points out, "In the meantime, I dyed my hair
black. Those Italians are crazy about blondes."

TEARS FOR MOTHER

Children have the biggest burdens to bear when families are torn apart.
"I know children who grow up around their grandparents because both
parents work abroad," states Vykoty's primary school librarian. Intimately
familiar with their suffering she describes how, "All the children started
to cry when they heard a poem about a mother's love in class."

The school director is also aware of the problem and trying to do some-
thing about it: "With offerings like extra help or art classes after school,
we try and alleviate the family problems of the children."

Still, he can certainly sympathise with parents who try their luck in other
countries: "Just a few years ago, I had to pay my teachers with vodka,
because I couldn't get any money from the state. Now they get at least
$20 a month in cash."

Although the work migration situation will not change anytime soon, there's
a noticeable new trend in Ukraine. After building a house, the next thing
people do is get their gold teeth replaced with porcelain ones so that they
can blend in with the locals abroad. So when in Ukraine, look for the
dazzling white smiles and you'll know who works overseas. -30-
------------------------------------------------------------------------------------------------------------
LINK: http://www.cafebabel.com/en/article.asp?T=T&Id=3659
===============================================================
9. KYIV DIVIDED ON HOW FAR TO GO WITH RE-PRIVATIZATION

ANALYSIS: By Taras Kuzio, Eurasia Daily Monitor
Volume 2, Issue 92, The Jamestown Foundation
Washington, D.C., Wednesday, May 11, 2005

Foreign investors are showing more interest in Ukraine since the Orange
Revolution. Nevertheless, they remain cautious because of uncertainties
surrounding the threat of re-privatization. Until this issue is resolved,
something President Viktor Yushchenko supports but Prime Minister Yulia
Tymoshenko opposes, Ukraine's positive international image will not
generate additional foreign investment.

Potential foreign investors have been alarmed by the manner in which the
government threatened TNK-BP and OASO Lukoil with the re-privatization of
the refineries they acquired in the 1990s. To stem inflation, caused partly
by continued high social spending, the government ordered oil companies to
not raise prices or else face the re-privatization of their Ukrainian
refineries.

The Yushchenko team did little to assure their commitment to a market
economy by appointing Valentyna Semeniuk as head of the State Property
Fund.

While she has experience as head of the parliamentary commission on
privatization, Semeniuk and her Socialist ties will add to the populism of
the Tymoshenko group within the government.

Like Tymoshenko, Semeniuk backs a more extensive investigation into the
privatization deals of the 1990s. Both Semeniuk and Tymoshenko have
hinted that Kryvorizhstal, which oligarchs Viktor Pinchuk and Renat Akhmetov
purchased for a third of its real price in June 2004, should remain in state
hands.

The Yushchenko team faces divisions on re-privatization and other issues
because is an extremely broad alliance that stretches across the entire
political spectrum seen in any European democracy. The alliance includes
left-wing social democrats, business representatives, liberals, and populist
right parties.

The main fault line runs between Yushchenko's Our Ukraine and Anatoliy
Kinakh's Party of Industrialists and Entrepreneurs. Both parties include
medium and small businessmen and back liberal market economics. These
more liberal, free marketers are more inclined to minimize the number of
companies subjected to re-privatization. They also favor offering
re-privatized companies for tender.

A second group represents a more populist, anti-oligarch orientation grouped
on the left (Socialists) and the right (Prime Minister Yulia Tymoshenko's
bloc). These populists are in favor of reviewing a far longer list of
privatizations and, in some cases, keeping firms under state control.

According to Tymoshenko, "If an enterprise brings profits to the country, it
is not necessary to sell it into private ownership." Such comments do little
to allay fears that she is more a populist than a free marketer. She has
already ruled out the privatization of companies that are "essential for the
country's viability or national security" (Zerkalo Tyzhnia, April 16-22).

As a result of these mixed messages, the Yushchenko team has had to issue "a
lot of contradictory messages," according to the head of Renaissance Capital
Ukraine. This, in turn, "creates al kinds of uncertainties." The Carnegie
Endowment's Anders Aslund has warned, "Members of this government right
now are going in very different directions" (Wall Street Journal, May 4).

The government's inconsistent message is partially the fault of Yushchenko
himself, who occasionally launches into anti-oligarch populism. Upon
nominating Semeniuk, Yushchenko ordered her to work on returning "every-
thing that was stolen to the state," which would require a full inventory of
what had been privatized (Ukrayinska pravda, April 18). Tymoshenko asked
the Prosecutor-General's office to examine all privatization deals by
mid-February in order to evaluate the legality of the deals.

Based on this still-undisclosed list, Tymoshenko wants the courts to contest
3,000 privatizations. She reported that the Prosecutor-General's office
opened criminal investigations into 2,000 of them (Ukrayinska pravda, March
2). The executive soon quashed this massive review, as it would have
undermined foreign investor confidence.

Yushchenko publicly registered his opposing view by announcing that only
30-40 companies would be re-privatized. Unlike Tymoshenko and Semeniuk,
Yushchenko believes that 90-98% of Ukraine's privatizations followed the
laws then in effect.

Hoping to calm foreign investors, Yushchenko called in February and again
in April for a final roster of companies subject to re-privatization. On
April 28 he gave the government only 10 days to finalize the list.
Tymoshenko opposed the idea of drawing up a final list. First Deputy Prime
Minister Kinakh at first supported her but then shifted to Yushchenko's
position (Ukrayinska pravda, May 4, 5).

Three factors have fuelled the government's populism.

FIRST, it is tempting to be selective about which of the 30-40 (Yushchenko)
or 3,000 (Tymoshenko) companies would be investigated and re-privatized.
Parliamentary speaker Volodymyr Lytvyn (who was head of the presidential
administration during six of Kuchma's 10 years in office) has indirectly
defended the illegality that pervaded Ukraine at that time. According to
him, nearly everyone broke a law at one time, because the legal system was
so inconsistent (Silski visti, October 8, 2004).

SECOND, the volume of corruption uncovered since Yushchenko's election
has hardened the left and right populism within the government. During the
last two years of the Kuchma presidency, the authorities launched a de facto
free-for-all that handed out choice state assets to loyal allies. Theft from
the budget and international aid was widespread. "When we came to office,
we discovered that all public life in Ukraine had been corrupted," lamented
Economics Minister Serhiy Teriokin (Washington Times, April 15).

THIRD, Tymoshenko has an eye on the 2006 parliamentary elections. Her
anti-oligarch populism has made her highly popular -- perhaps more popular
than Yushchenko.

National Security and Defense Council Secretary Petro Poroshenko has
explained that re-privatization would only be undertaken in cases where
there was only one bidder, the tender was not transparent, the price was not
fair, or the investor did not fulfill his obligations. Yushchenko ally and
First Deputy Prime Minister Mykola Tomenko advised that at a government
meeting they banned use of the word "re-privatization" (Ukrayinska pravda,
February 17). Unfortunately, Tymoshenko and Semeniuk seem to disagree.
===============================================================
10. PRIME MINISTER TIMOSHCHENKO TACKLES MEAT PRICES
Meat is the only regular luxury item in a family's budget

New Europe, Athens, Greece, Monday, May 9, 2005

KYIV - Tough-as-nails Prime Minister Julia Timoshenko led Ukraine's
Orange Revolution, but she has met her match in meat. Poultry or pork,
lean or marbled, wholesale or retail, Ukrainian meat prices are going
through the roof, Deutsche-Presse-Agentur (dpa) reported recently. A
Ukrainian housewife able to steel herself to face her butcher these days
pays 30 percent more for meat than she did last December.

An exchange between a price-shocked shopper and a jaded seller at
Kiev's Volodymyrsky food market last weekend went like this: Well-
dressed matron: "Thirty-five hryvnias (USD 7) for a kilogramme of pork
loin, that's a joke, right?"

Saleswoman: "Look, I just sell the stuff. You want to complain, talk to
Julia (Timoshenko), she's the meat-empress in this country, not me." Meat
prices are a big deal in Ukraine. Meat is the only regular luxury item in an
average Ukrainian family's budget, most of which goes on state-supported
foods like bread, grains, and vegetables.

Timoshenko's government is working hard to stay on the good side of
Ukrainian consumers, in no small part because parliamentary elections are
due next March. Just two weeks ago, for instance, Timoshenko cut a deal
with Russian oil exporters freezing the price of petrol at Ukrainian filling
stations at levels roughly half those seen in Europe.

Easter is a big holiday in Ukraine, and though Ukrainians don't eat as much
meat as Europeans, an Easter table loaded with cutlets, chops, and the
national food - raw sliced pork fat - is inevitable in most Ukrainian
families. Rocketing meat prices stand to make holiday tables this year
visibly poorer and so Timoshenko, well aware of voter reaction, has
declared war on the high cost of meat.

"Meat prices will be under my personal control," Timoshenko announced at
a televised cabinet meeting in early April. "I am quite sure prices will go
down by Easter." Timoshenko scored an early success on the chicken front,
summoning to the capital in good Soviet fashion the country's main poultry
factory directors.

After an afternoon locked behind closed doors with the prime minister, the
managers dutifully trooped out to a press conference where their spokesman
announced the price of Ukrainian chicken would be frozen. "We cooperated
with the government," said a somewhat sour-looking Maksin Pisarev, top
manager of the Dnipropetrovsk Poultry Factory, as Timoshenko beamed in
the background.

April has unsurprisingly seen a nationwide run on chicken, with markets
frequently selling out the day's poultry allotment before noon, and
sometimes refusing to place chicken on sale. Pisarev told he is better off
exporting his chickens to Russia than selling to Ukrainians.

Red meat is more complicated, mostly because in Ukraine the retail product
usually comes via a small farmer selling a pig or a steer to market traders,
rather than from slaughterhouses supplying chains of grocery stores.

Timoshenko, blaming middlemen, last month put the state into the meat
wholesaling business by declaring her government would buy 40,000 tonnes
of red meat which, she promised, would retail at cost across the country.

The government of course wants Ukraine to join the European Union and says
it supports free markets, but red meat is an exception, she argued. "We must
do what it takes to combat the speculators (middlemen)," Timoshenko said.
"The government must make sure Ukrainians pay a fair price."

The retailers accused of price-gouging by Timoshenko, however, say the
prime minister is a woman who just doesn't know the real price of meat. "My
cost is USD 3.40, I sell at 3.60," fumed Tatiana Bevz, a saleswoman at the
Odessa Privoz market. "You tell me if that's excessive."

That may all be academic, pointed out Ivan Silko, a government spokesman.
"The government is offering 12 hryvnias for meat on the hoof, and the usual
market price is 15," Silko said. "Not a kilogramme (of government-bought
meat) has made it to the markets."

Timoshenko also ordered special sections set up in markets across the
country for animal owners to sell meat directly to consumers, and so
supposedly cut out middlemen. Consumer relief has been minimal. "Sure
the farmers come in (to urban markets), they are glad to sell directly to
the consumer," said Vitaly Kurko, a trader at Kiev's Yunost market. "And
they sell at one-two hryvnias less than the traders ... it just makes their
pigs more profitable."

"No-one can dictate to an open market like meat, not even the prime
minister," said MP Liudmila Suprum, chairwoman of the parliament's food
subcommittee. "Lower meat prices any time soon, never mind by Easter,
are a fairy tale." -30- [The Action Ukraine Report Monitoring Service]
---------------------------------------------------------------------------------------------------------
FOOTNOTE: The way the prime minister has dealt with economic
problems the past three months seems to many observers to be more
of the old Soviet, government planned way than the free enterprise and
private market way. There is considerable grumbling in the business
community about the heavy handed actions of the prime minister.
[EDITOR]
===============================================================
11. UKRAINE GASOLINE PRICES: AGAIN A CRISIS, RESERVE NEEDED

ANALYSIS: Andrey Voltornist, Ukraine Analyst
IntelliNews - Ukraine This Week
Kyiv, Ukraine, Wednesday, May 11, 2005

Every year Ukraine faces oil and gasoline problems on domestic market

Over the last few years Ukraine experiences difficulties on the domestic
retail gasoline market. Prices rise in spring (before and during sowing) and
autumn (before and during harvesting), when demand increases. Another
factor is surging prices of oil on the world market.

As it is known, Ukraine’s own oil extraction makes up only 10% of volume
required by the country. Thus, being a transportation bridge of energy
resources between the East and West, Ukraine has to pay for energy itself.

Due to this energy dependence, government has to tackle energy crises
every year. The solution is not found yet. As a result, authorities annually
introduce price regulation, provide petroleum to agrarians at preferential
prices, restrict exports of oil and its products, sign agreements with oil
traders, monitor the situation and fine violators.

On Sep 27, 2004, we wrote an analytical feature, “Oil Sector Restructuring:
Clashes Between Market Players”. The main question now is whether the
new Ukrainian authorities can finally do something about the price hikes.
Let’stake a look.

Signs of new energy crisis appear in end-March

The start of this year’s crisis was an announcement of agrarian minister
Oleksandr Baranivskyi. He claimed that in end-March there was a secret
meeting of oil refineries’ owners, who agreed to hike prices simultaneously.

To remind you, government, oil majors, and the association of farmers and
landowners signed an agreement, according to which oil product makers
promise to provide up to 600,000 tons of diesel fuel at UAH 2,400 (USD
475.2) per ton over Feb-May (sowing period).

The memorandum was signed by 7 leading oil companies, Ukrtatnafta
(Kremenchugskyi oil refinery), TNK-BPUkraine (Lysychanskyi oil refinery),
Lukoil Ukraine (Odesa oil refinery), Kazakhoil Ukraine (Khersonskyi oil
refinery), Halychina (Drogobychskyi oil refinery), Naftokhimik Prikarpattya
(Nadvyrnyanskyi oil refinery), and state-run Naftogaz Ukraine (Shebelinskyi
gas refinery).

According to State Statistics Committee, last year Ukraine exported crude
oil worth USD 98.56mn (a 62.5% y/y decrease), and imported worth USD
4,837.38mn (a 31.5% y/y increase). Meanwhile, Ukrainian production of diesel
fuel decreased 0.9% y/y to 6.27mn tons in 2004. As for gasoline, Ukraine
produced 4.57mn tons of the fuel last year, a 20.3% increase in y/y terms.
We must note that local oil product prices did not go down despite higher
domestic market filling (due to reduced exports and increased imports).

The world oil price growth influenced gasoline and diesel fuel prices (by
increasing refining costs). But we do suspect collusion was possible among
traders. The problem for traders now is that administrative price control
forces them to buy oil at higher wholesale prices and sell it at capped
retail ones.

AMCU: no signs of collusion on oil market

A response followed almost immediately. Feliks Lunev, director for
commerce and production of TNK-BPUkraine, underlined that the Mar 24
meeting was not a secret one. Oil traders’ proposition was to raise
preferential prices to UAH 2,800 per ton of diesel fuel.

Antimonopoly Committee of Ukraine (AMCU) in its turn said that it monitors
the situation and oil prices. The committee noted there are some objective
reasons for price dynamics on the domestic market but there is no evidence
of collusion among oil traders and oil producers.

EconMin suggests to fix wholesale prices of oil and its products

On Apr 14, EconMin fixed wholesale prices of diesel fuel and petrol sold on
the local market until May 1 (order #95). According to EconMin, until May 1
diesel fuel should be sold at UAH 2,932 per ton, ?-95 brand – at UAH 3,528,
?-92 brand – at UAH 3,481, and ?-76(80) brand – at UAH 3,455. Besides, it
was recommended for local authorities to set the maximum level of the
traders’ price hike at 13%.

At that moment, oil prices exceeded the level of UAH 3 per litre and in many
gasoline stations A-92 brand was sold at the price of UAH 3.2-3.5 per litre.
Agrarians started to claim that oil traders refuse to supply them with
agreed volumes of diesel fuel at preferential prices.

Oil traders express dissatisfaction

On Apr 16 (the next day after justice ministry registered the order #95),
controller start examine of gasoline stations. As a result, some stations
stopped their operations and closed for stock-taking (in order not to be
fined). On Apr 19, the 7 largest oil companies claimed they were fined
before the order was officially published.

There are economic reasons to raise prices, minding growing oil prices.
Besides, Russia increased the oil export duty from USD 83 to USD 102.6
per ton from Apr 1. This negatively influences the Ukrainian oil market as
it strongly depends on imports from Russia.

TNK-BPUkraine promises to freeze fuel prices until May 1

Russian-British oil major TNK-BP intends to sell oil products through its
network of gasoline filling stations by May 1 at prices set by EconMin. This
was stated by president of TNK-BP Ukraine Oleksandr Gorodetskyi on Apr
21. TNK-BP decided to continue delivery of diesel fuel to farmers at the
price of UAH 2,400 per ton from Lysychanskyi oil refinery. Earlier, PM Yulia
Tymoshenko announced that an agreement should be reached with TNK-BP
on reduction of prices for petroleum products to the level set by EconMin.

Large oil traders purchase small ones

Another tendency that can be observed on the Ukrainian retail oil market is
that large traders acquire small ones. Presently, the largest owners of
networks of gasoline filling stations, namely TNK-BP, Ukrnafta, Western Oil
Group (WOG), LUKOIL, Alfa-nafta, and Alliance, control about 30% of the
retailing market.

Step by step they purchase small networks, while opening of new filling
stations slows down. In 2004 the number of gasoline stations increased
by 2.5% y/y or 150 units to 6,100. At that, aggregate sales revenues of
gasoline filling stations made up USD 30bn and gasoline traders sold
6.5mn tons of oil products, a 5% increase in y/y terms.

Largest Networks of Gasoline Stations
Company #of stations
TNK 1,280
Ukrnafta 316
Alfa-nafta 300
Ukrtatnafta 300
WOG 250
LUKOIL 172
Source: IntelliNews

Privat Group actively buys gasoline filling stations all over

UkrainePrivat group and Alfa-nafta have the most ambitious plans of network
expansion for this year. We believe the strategic plan of Privat group is
creation of a private vertically integrated oil company. To accomplish this
goal, Privat wants to create a vast network of gasoline filling stations
under
the brand of Ukrnafta. The company extracts about 75% of the total volume
of crude oil and gas condensate in Ukraine. State-owned Naftogaz Ukraine
owns a 50%+1 share stake in Ukrnafta, while Privat group controls 42% of
Ukrnafta’s shares. Ukrnafta ran 297 stations as of Jan 1, 2005.

The company intends to expand its network to 800 units in 2005. To do this,
the oil major announced a tender for buying gasoline filling stations.
According to the press service, the company will accept bids until May 25.

On Apr 20, AMCU allowed Ukrnafta to purchase 73 gasoline filling stations
from Dnepropetrovsk-based Bars and Favourite Plus companies. Thus,
Ukrnafta will buy 45 stations from Bars and 28 from Favourite Plus.

Alfa-nafta’s ANP brand is present at 300 gasoline filling stations

Alfa-nafta has the highest rate of building new gasoline stations. However,
the ANP brand is not present at all stations of the company. Many of them
work as jobbers of TNK. Still over 300 stations operate under the ANP
brand. However, the secretiveness of Alfa-nafta does not allow estimating
its market share.

Russian oil companies control 6.5% of gasoline filling stations in Ukraine

Russian oil companies, TNK-BP, LUKOIL, and Alliance, run 6.5% of all
Ukrainian gasoline stations. However, there are lots of jobbers, which
operate under the TNK-Ukraine brand. If we consider them, it can be
concluded that every 4th station works for the Russian company. Moreover,
oil refineries, which are owned by Russian oil majors, provide 2/3 of total
Ukrainian gasoline to oil traders. At that,TNK-BPUkraine plans to increase
its network by 50% to 78 gasoline stations in 2005.

Government should work out new program of oil product sector development

Positively, president Viktor Yuschenko, being very concerned about the
situation, asked government to make Ukraine an energy non-dependent
state in 3 years. He said government should solve problems in gas, oil
and energy sectors. MP Oleksandr Gudyma believes the process will
take at least 5 years.

The only thing that can be done in 3 years is diversification of energy
supplies and imports, in our view. Executive director of UPECO Serhei Kuyun
said that theoretically, there are opportunities to diversify oil and energy
resources supplies, but in this case oil will be more expensive. According
to him, trans-shipment adds USD 8 per ton and transportation costs – USD
5. At that, USD 1-2 significantly influences profitability of oil sales, he
emphasised.

Negatively, the gasoline crisis happens every year and nothing to prevent it
is done. Discussions about creating VIOC begin every spring and autumn, but
it is only discussions and nothing more. Every time, government invents
something new. Thus, in 1999 Ukraine agreed on deliveries with Azerbaijan
and Greece, in 2004 prices were held via weekly agreements with oil traders.

In our view, government should consider two things: state-owned VIOC and
reserve oil fund. The former is required to regulate oil prices via market
instruments; the latter is needed for organizing fuel interventions to
smooth oil supply fluctuations. -30-
===============================================================
12. EBRD CAN LOAN BUNGE AFFILIATES UP TO $58 MILLION
FOR UKRAINIAN PROJECTS

UNIAN, Kyiv, Ukraine, Tuesday, May 10, 2005

KYIV - European Bank for Reconstruction and Development [EBRD] can
grant Suntrade S.E. and Dnipropetrovsk Oil Extraction Plant, which are
affiliate companies of American Bunge Ltd, up to $40 million of credit
[loans], according to AgriMarket. It can also grant "Black Sea Industries"
and its local partners an intermediate credit in the amount of $18 million
for construction of an oil crushing plant in the Black Sea port of
Ilyichevsk.

An EBRD spokesman said its Board of Directors was planning to examine
the issue about granting this credit on June 28. The whole cost of each of
the projects will be $180 million and $36 million accordingly.

As it has been reported before, Bunge Ltd - a multi-national agribusiness
and food corporation - intends to build a new oil-crushing facility with
600,000 tonnes of annual capacity in Ilyichevsk port.

At the end of April 2005 EBRD and ING Bank N.V. (the Netherlands)
granted another new oilseed crushing facility, located in Ilyichevsk
(Ilyichevsk Oil-Extraction plant, Odessa region), a credit in the amount of
$30 million for purchases of raw material and renewal of current assets.

Ilyichevsk Oil-Extraction Plant is a joint venture of Dutch ADM Nederland
and Swiss Risoil Group, with each of the participants having 50 percent
share in the enterprise.

EBRD is the largest investor in Ukraine. The worth of its investments in
this country up to the moment has totalled 1.7 billion euros in 67 projects.
The bank invested a total of 3.3 billion into 220 farm complex projects in
27 countries. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
13. UKRAINIAN PRIME MINISTER WANTS NIKOPOL FERROALLOY
PLANT BACK IN STATE OWNERSHIP

Interfax-Ukraine news agency, Kiev, in Russian 1204 gmt 11 May 05
BBC Monitoring Service - United Kingdom; May 11, 2005

KIEV - The controlling stake (51 per cent) in the Nikopol Ferroalloy Plant
must belong to the state in accordance with court rulings, Ukrainian Prime
Minister Yuliya Tymoshenko has said. "Based on all the court rulings to
date, 51 per cent must be in state ownership, and I am fully satisfied with
these rulings," Tymoshenko said at a news conference in Kiev today.

She said she was disappointed with some officials who prevented a
shareholder meeting from being held with the state acting as the owner
of the controlling stake. "It is not within my remit to manage the State
Property Fund or the state commission for securities and stock market,"
Tymoshenko said. She said that in her opinion enough documentary
evidence exists today to return the controlling stake to the state.

Tymoshenko said that if the state had taken part in the shareholder meeting,
the management of the plant would have been replaced and the budget
would get some of the 550m dollars which is the plant's annual net income.

Commenting on the fact that she had a meeting with Viktor Pinchuk [former
President Kuchma's son-in-law], the founder of the Interpipe corporation,
which controls the ferroalloy plant, Tymoshenko said that Pinchuk is a
member of parliament and the prime minister cannot refuse to have a meeting
with an MP. She said, however, that she does not and would not strike any
deals with any oligarchic clans. [Passage omitted: background on the
ownership dispute about the Nikopol Ferroalloy Plant] -30-
=============================================================
14. LVIV FINANCIAL FIRM RAISING MONEY THROUGH THE BOND
MARKET TO SUPPORT MEDIUM-SIZED BUSINESSES

A Lviv financial firm is developing a niche market by providing support to
medium-sized firms that want to raise money through the bond market.
By specializing in an underserved area of financial need, the firm finds
itself rapidly developing a reputation and a clientele that it expects will
continue to expand.

By Alla Vetrovcova, FirsTnews, Kyiv, Ukraine, Fri, May 06, 2005

LVIV, May 5 - Optima Financial Group, a Lviv-based firm, has developed
a niche market that is finding ready acceptance by Western Ukrainian
businesses that want and need to raise money but are skittish about the
potential loss of control that comes with public stock offering. Optima
leadership says that it has met expectations as lead managers of bonds
issues and are optimistic for the future as growing businesses promise to
enlarge their bond offerings in the near future.

Now the main task for Optima Group is to further develop its niche by
persuading companies that they can raise profits by issuing bonds.
Optima Group, which secured its license only in March 2004, has during the
last six months managed bond issues for Shkolyaryk, a publishing house;
Intermarket, a retailer chain; Ukrtekhnofos, a chemical fertilizers
producer; and most recently for First Private Brewery, all Lviv-based
companies. The issues were UAH 5 million to UAH 10 million.

"We work with small capital because our issuers are mid-sized enterprises.
However, we think that we have our own niche in the market confirming that
we are experts in our business," said Oleh Medvedev, executive officer of
Optima Group.

There is still a lot of work to do as both local businessmen and investors
do not yet trust the underdeveloped bond market. However, now is a good time
to establish a niche in the market. "Non-residents are much more advanced.
They know the worth of investing in bonds and they have already estimated
bonds as really profitable instruments abroad," he added.

According to Medvedev, bonds as financial instruments are much more suitable
to enterprise owners. Issues allow them to parlay the cash into profits
without being influenced or losing control. "Bonds are a much more effective
instrument than stock shares. Bonds are in demand, whereas shares are still
risky in the underdeveloped market," Medvedev said.

When Intermarket issued bonds worth UAH 10 million in 2004, Optima Group
was the lead manager and Ukreksim Bank was the underwriter; the bond issue
sold out in two weeks.

According to Ihor Kondrat, comptroller for Intermarket, the company decided
on the bond issue as an opportunity for further development. "We've had two
goals regarding the bonds: first, to attract finances and secondly, to
become open to financial circles," Kondrat said.

Intermarket opened its first store in 1998. Now it owns two supermarket
chains, the Arsen and Barvinok discount shops. Intermarket is preparing for
a second issue worth UAH 50 million.

A few days ago, Ukrtekhnofos, a chemical fertilizers producer, a second
agreement with Optima for a deal valued at UAH 5 million. It is already
registered by the State Security Market and Stock Commission.

According to Mykola Adamovych, vice-director of finance at Ukrtekhnofos, it
is better to start operating with small issues. Ukrtekhnofos was registered
in 2000, and as a young enterprise, needed additional capital without
attracting large investment, Adamovych explained. The first bond issue was
successful, he said.

Local bond market experts, though, are not quite as enthusiastic as Optima
Group. Vyacheslav Kharchenko, general director of C-Bonds Ukraine, said
that until 2005 it was not profitable to provide such a service for mid-size
companies who wanted small bond issues.

"Issuers can take loans at a high interest rate, such as 18 percent to 20
percent at banks. But the profit is really small, because there are also
expenses for commission, services of an underwriter, and there is also a
fee for a national rating, which is obligatory for each issuer. But, there
is, of course, an advantage for issuers in that there is no need to provide
a deposit when taking the loan."

The annual interest rate for bond holders in Ukraine is about 17 percent.
The future for the bond market of this type depends a lot on changes in the
banking sector. If the hryvna interest rates at Ukrainian banks become lower
for loans, dropping from 17 percent to 10-12 percent that will have a
positive impact on the bond market, according to Kharchenko. Then banks
could underwrite loans at lower interest rates. Already, there are
indications that some banks will decrease the interest rates for loans, he
said.

Optima Group is so far the only investment group that works with such small
bond issues. Alfa Bank Ukraine also serviced mid-size companies, but for
issues that were a minimum of UAH 10 million. "However, last year showed
that it is not worthwhile for Alfa bank [to underwrite bond issues] any
more, probably because it's not so profitable for the bank," Kharchenko
added. "The underwriter's profit is really small when issues are small," he
added.

However, Adamovych pointed out that Ukrtekhnofos production capacity
doesn't permit rapidly increasing the bond issue from UAH 10 million to
UAH 50 million. They could not qualify to float these volumes. "But I think
that in the near future we can expand the issue, and now we've already
had experience with small volumes," he said.

That allows a mid-size enterprise like Ukrtekhnofos to test the domestic
market demand. "We will know how to operate with bigger issues,"
Adamovych said.

He sees the current situation with the bond market as promising. There is
no deposit, he said, and that's advantageous. The only disadvantage is the
bureaucracy involved in registering documents for issuers, he added. The
positives outweigh the negatives according to Adamovych, ".otherwise we
would not be involved in bond issues." -30-
-----------------------------------------------------------------------------------------------------------
LINK: http://www.firstnews.com.ua/en/article.html?id=46088
===============================================================
15. UKRAINE RECEIVES G8 GOVERNMENTS PLEDGE OF 260 M DOLLARS
FOR NEW SHELTER OVER THE CHERNOBYL NUCLEAR PLANT

UNIAN news agency, Kiev, in Ukrainian 1200 gmt 10 May 05
BBC Monitoring Service, UK, in English, May 10, 2005

KIEV - Donor countries plan to allocate a further 260m-270m dollars to
Ukraine for the construction of the new shelter over the Chernobyl nuclear
power plant. UNIAN reports that journalists learnt this from the cabinet's
press service. According to the press service, the relevant decision will be
announced on 12 May during the next meeting of donors of the Chernobyl
Shelter Fund, which will take place in London.

British ambassador Robert Brinkley told journalists that after today's
meeting between the ambassadors of G8 countries and Prime Minister Yuliya
Tymoshenko, the ambassadors of G8 states received assurances from the
Ukrainian cabinet that Ukraine will allocate 22m dollars to this fund in the
form of works to dismantle unstable structures.

Brinkley also said that Tymoshenko assured the ambassadors that the pace
of works to construct the new shelter is not slowing down due to the
transfer of responsibility over this process from the Energy Ministry to the
Emergencies Ministry. Brinkley also said that Tymoshenko said that she will
personally coordinate the works to build the new shelter over the Chernobyl
nuclear power plant.

Emergencies Minister Davyd Zhvaniya told journalists that all the money
received by the Chernobyl Shelter Fund will be directed not only towards
building the new shelter but for completing the construction of a dry
repository for spent nuclear fuel and the construction of a liquid waste
recycling plant.

Zhvaniya also said that the construction of these two facilities is 4.5 and
1.5 years behind schedule, respectively. Zhvaniya added that the timeframe
for carrying out works on the Shelter facility will finally be decided after
a tender has been held for its construction. It is planned to hold the
tender in August.

According to preliminary data the total value of the Shelter project stands
currently at 1.091bn dollars. Donor countries have already transferred 870m
dollars to the fund and Ukraine has transferred 50m dollars to it. -30-
===============================================================
16. OLD LEFTIST INTERPRETATION OF THE 1945 YALTA CONFERNCE

LETTER TO THE EDITOR
From Jean-Pierre Cap
The Action Ukraine Report #483, Article 14
Washington, D.C., Thu, May 12, 2005

RE: "ONCE AGAIN, THE BIG YALTA LIE"
EDITORIAL: By Jacob Heilbrunn, Times editorial writer
Los Angeles Times, Los Angeles, CA, Tue, May 10, 2005
Published in The Action Ukraine Report #482, Article 12
Washington, D.C., Wednesday, May 11, 2005

Dear Mr. Williams,

I was disappointed to see space in ArtUkraine given to the old
leftist interpretation of the 1945 Yalta Conference. Alger Hiss's
treasonous role was so valued by the Soviets that they gave him
their highest decoration, the Lenin medal, during his brief stop
in Moscow on his way back from Yalta.

While it is true that the Red Army had forced the Germans out of
Eastern and most of Central Europe, Soviet police forces had not
had time yet to install communist regimes under direct Moscow
control. To prevent the enslavement of Eastern and Central Europe
was Roosevelt's and Churchil's sacred responsibility.

This enormous failure will tarnish their records forever. It caused
untold suffering to hundreds of millions under the Soviets, and
enormous sacrifices by the United States over 40 years of an epic
struggle in order to correct the Yalta error.

Comments such as Jacob Heilbrun's sacriligeously ignore this
tragic reality. This said, I am most grateful for the existence of
ArtUkraine.

Sincerely yours, Jean-Pierre Cap, JPBCAP@aol.com
===============================================================
17. 'KYIV CHAMBER CHOIR' LIVE CONCERT CD RELEASED
First live concert CD by the world-renowned Kyiv Chamber Choir
"The Sounds of Kyiv"

Andrew Witer, President, Dotcom Recordings Inc.
Toronto, Ontario, Canada, May, 2005

TORONTO - Dotcom Recordings Inc.is pleased to announce the release of
"The Sounds of Kyiv" - the first live concert CD by the world-renowned Kyiv
Chamber Choir. Recorded live for broadcast by the CBC Radio Network at the
November 5, 2004 concert in the George Weston Recital Hall in Toronto this
CD was produced by Dotcom Recordings, in association with CBC Records.

This performance was part of the first concert tour of Canada by the Kyiv
Chamber Choir, a tour that featured 17 performances in 14 cities during
November 2004. Every concert was a remarkable event featuring great
Ukrainian choral music (both classical and contemporary), superb singing
and a unique, entertaining presentation.

All of the Ukrainian folk music and selections from the sacred choral music
performed by the Choir at concert cities from Montreal to Edmonton are
included. As they sang, Choir members also played the instruments heard
on this recording and were engaged in some compelling and ever-changing
choreography.

The entertaining performances of the Kyiv Chamber Choir are unique in
choral music- and rare in the world of classical music. They never failed to
bring Canadian audiences to their feet for sustained ovations. As people
listen to this CD, they will sense the spirit of each concert, the reaction
of every audience and the joy and talent of these outstanding performers.
"You will have a chance to hear what the critics and audiences were raving
about" CBC Radio Network "Choral Concerts" Broadcast January 9, 2005

For Information: contact Dotcom Recordings Inc. Toll free: 1-877-232-9835.
Toronto, Canada: (416) 242-5025; or e-mail: info@cdbynet.net.
===============================================================
18. "SAYING SORRY"

OP-ED: By Anne Applebaum, Columnist
The Washington Post, Washington, D.C.
Wednesday, May 11, 2005; Page A17

"It just offends me that the president of the United States is, directly or
indirectly, attacking his own country in a foreign land." That was 1998. The
speaker, Tom DeLay (R-Tex.), was then House majority whip. The president
was Bill Clinton, who had "attacked his own country" while in Uganda. "Going
back to the time before we were even a nation," Clinton had told an African
audience, "European Americans received the fruits of the slave trade. And
we were wrong in that."

Fast-forward seven years; the president is now George W. Bush. Last week-
end he unexpectedly proffered an apology for the 1945 Yalta agreement,
which legitimized Soviet control of Eastern Europe. Speaking in Latvia, one
of the countries that remained under Soviet occupation, Bush said that
Yalta, an agreement reached by Franklin D. Roosevelt, Winston Churchill
and Joseph Stalin, "followed in the unjust tradition of Munich and the
Molotov-Ribbentrop pact. Once again, when powerful governments
negotiated, the freedom of small nations was somehow expendable."

Perhaps the most extraordinary thing about Bush's comments is that they
constitute an apology for a historical disaster most Americans don't
remember. I certainly knew nothing of the bitterness that many East
Europeans felt toward the United States and Britain until I was personally
accused of "selling out" Poland at Yalta -- a deal done 20 years before I
was born -- during my first trip to Warsaw in the 1980s.

Less surprising is the tenor of the reaction. On the left, a small crew of
liberal historians and Rooseveltians have leaped to argue that the president
was wrong, and that Yalta was a recognition of reality rather than a
sellout. Their charges ignore the breadth of the agreement -- was it really
necessary to agree to deport thousands of expatriate Russians back to
certain death in the Soviet Union? -- as well as the fact that Yalta and the
other wartime agreements went beyond mere recognition of Soviet occupation
and conferred legality and international acceptance on new borders and
political structures. But on the right, no one -- certainly not Tom DeLay --
has objected to Bush's statement because it took place on foreign soil.

Politics, of course, explains these differences. Clinton's trip to Africa
occurred during the Paula Jones harassment lawsuit, and DeLay's comments
were part of what was to become an "if he can apologize for that, why can't
he apologize for Monica" story line. Bush's trip to Latvia took place during
a debate about Social Security, and may well become part of a "he's trying
to dismantle FDR's legacy" story line. At the same time, no one on the right
objected -- and no one on the left applauded loudly -- when Bush, on his own
trip to Africa in 2003, not only apologized for slavery on foreign soil but
declared that its impact still lingers. "My nation's journey toward justice
has not been easy, and it is not over," the president said: "The racial
bigotry fed by slavery did not end with slavery or with segregation."

Both left and right would do better to stand back and think harder about how
important it is for American diplomacy, and even Americans' understanding of
their own past, when U.S. presidents, Republican or Democrat, admit that not
every past U.S. policy was successful -- which, by any measure, Yalta was
not. Since the end of the Cold War, historical honesty has become more
normal everywhere in the West, and rightly so: We aren't, after all, trying
to withstand a Soviet propaganda onslaught, and we've grown more used to
thinking, at least some of the time, of our national disputes as evidence of
the authenticity of our democracy. To put it differently, apologies are
something that democracies can do, at least occasionally, but that the
Chinese or the Syrians always find impossible. Infallibility nowadays is
something that only dictatorships claim.

Both left and right should also consider contexts more carefully. Certainly
the president's speech last weekend did not sound personal, as if he were
apologizing to feel good about himself. It did not mention Roosevelt by name
or wallow in Cold War rhetoric. On the contrary, Bush went on afterward to
talk about the democratic values that had replaced Yalta, and to draw
contemporary lessons. The tone was right -- and it contrasted sharply with
the behavior of Russian president Vladimir Putin, as perhaps it was intended
to. Asked again last week why he hadn't made his own apology for the Soviet
occupation of Eastern Europe, Putin pointed out that the Soviet parliament
did so in 1989. "What," he asked, "we have to do this every day, every
year?"

The answer is no, the Russian president doesn't have to talk about the
Soviet occupation of Eastern Europe every day -- but during a major,
international anniversary of the end of the war, he clearly should. And no,
the U.S. president does not have to talk about Yalta every year, but when he
goes to Latvia to mark the anniversary of the end of the war he should --
just as any American president visiting Africa for the first time should
speak of slavery. No American or Russian leader should appear unpatriotic
when abroad, but at the right time, in the right place, it is useful for
statesmen to tell the truth, even if just to acknowledge that some stretches
of our history were more ambiguous, and some of our victories more
bittersweet, than they once seemed. -30-
--------------------------------------------------------------------------------------------------------
E-mail: applebaumanne@yahoo.com
===============================================================
19. UKRAINE: ORANGE RIBBONS TO POLICEMEN'S CAPS
DURING EUROVISION 2005

Ukrainian News Agency, Kyiv, Ukraine, Tue, May 10, 2005

KYIV - The Interior Ministry has decided to decorate the uniform caps of
policemen with orange ribbons for the time Kyiv will host the Eurovision
2005 international song contest. Deputy Interior Minister Oleksandr Fokin
made this statement to the press. He said the police will double their
efforts during the contest, but no special measures will be employed. "We
do not panic. An ordinary work atmosphere," Fokin remarked.

He added that ribbons will be fluorescent to make policemen highly visible
and will be removed after the event. "It is a temporary stripe for the cap,"
Fokin said. No other alternations in the police uniform are envisaged. As
Ukrainian News earlier reported, the contest administrators recently said
that the guards posted for the time of the contest will be dressed in
peculiar uniforms specially tailored for Eurovision 2005.

With its song Razom Nas Bahato, Greenjolly band from Ivano-Frankivsk,
west of Ukraine, will take part in Eurovision 2005, to be held in Kyiv in
May, along with other singers from 38 countries. -30-
===============================================================
20. TATARS TO GET THREE CABINET POSTS IN UKRAINE'S CRIMEA

Source: Black Sea TV, Simferopol, in Russian 1700 gmt 10 May 05
Provider: BBC Monitoring, Date: May 10, 2005 (17:00)

SIMFEROPOIL - [Presenter] Crimean Tatars will receive three posts in the new
government of the Crimean Autonomous Republic - the posts of deputy prime
minister and two ministers. the head of the Majlis [Crimean Tatar assembly,
Mustafa Dzhemilyev] has announced that a preliminary agreement on this was
reached with Crimean Prime Minister Anatoliy Matviyenko. Dzhemilyev also
said that a major scandal was defused during consultations about the Crimean
cabinet make up.

[Correspondent] At a meeting with Crimean Tatar public figures and
journalists, Mustafa Dzhemilyev has said that while the first consultations
on the government make-up were underway, he was surprised by the number
of people who, the Majlis believes, were involved in the presidential
election campaign of [defeated candidate] Viktor Yanukovych, "zealously and
with massive fraud". Above all, Dzhemilyev is opposed to [Crimean minister]
Olha Udovina, [deputy prime ministers] Vitalina Dzos and Anatoliy Korniychuk
staying in the cabinet.

Dzhemilyev believes that these government officials should be removed
from their posts. Dzhemilyev added that Matviyenko decided to keep these
officials because there are parliament votes behind every one of them. If it
were not for these votes, the cabinet composition simply will not be
approved. Dzhemilyev says that initially Crimean Tatars were offered just
two posts in the new Crimean cabinet. However, the Majlis was not satisfied.

As a consequence, all Crimean Tatar members of the Crimean government,
starting from the deputy speaker [Ilmi Umerov], wrote resignation letters.
And the Majlis also refused to nominate its candidates for the cabinet at
all.

[Dzhemilyev] Matviyenko said that this is impossible. Crimean government
could not exist without Crimean Tatars. This leaves me in a very vulnerable
position [Matviyenko said]. And I told him, quite the opposite. We are
making a grand step, meeting you halfway, helping you. You will have a lot
of supporters from now on, first of all, the Russian Bloc and [Crimean
Communist leader Leonid] Hrach. They will simply shriek with joy when they
learn that there are no Crimean Tatars in the cabinet.

[Correspondent] Still, the Crimean prime minister and the Majlis head have
managed to reach an agreement. The posts of Crimean deputy prime
minister and two ministers will be given to Crimean Tatars.

However, Dzhemilyev believes that this compromise is far from fair, as is
the decision adopted by the Crimean authorities to introduce a moratorium
on the distribution of land, suggested by Ukrainian President Viktor
Yushchenko. [Passage omitted: Dzhemilyev speaks against the moratorium.]
===============================================================
21. DEPUTY PREMIER OLEH RYBACHUK NOTES EU'S GROWING
TRUST IN UKRANE

Interview with Oleh Rybachuk by Roman Kulchynskyy
Kontrakty, Kiev, in Ukrainian 9 May 05; p 28-30
BBC Monitoring Service, UK, in English, Wed May 11, 2005

The Ukrainian deputy prime minister for European integration, Oleh Rybachuk,
has said that the EU will recognize Ukraine as a country with a market
economy with the next month or month and a half. Interviewed by a business
weekly, Rybachuk added that Ukraine first needed to join the WTO to be in a
position to form a free trade area with Europe.

Commenting on his alleged role as mediator between Ukrainian institutions
and foreign intelligence, Rybachuk said it is no secret that as an official
with various government bodies he often met foreign diplomats to present his
analysis of Ukrainian internal affairs for them. Speaking of President
Viktor Yushchenko, Rybachuk said that anyone who might try to monopolize
access to the president was "doomed to failure".

The following is the text of the interview with Rybachuk by Roman
Kulchynskyy, entitled "Yushchenko the moralist" and published in the
Ukrainian newspaper Kontrakty on 9 May, subheadings inserted editorially:

Deputy Prime Minister for European Integration Oleh Rybachuk can really be
called Yushchenko's man as he has been working in the president's team since
1992. They say that when the cabinet was being formed, Yushchenko himself
asked Rybachuk what he wanted to do in the new government. Rybachuk chose
European integration.

EU'S GROWING TRUST IN UKRAINE

[Kulchynskyy] When will Ukraine get the status of a country with a market
economy?
[Rybachuk] Over the course of about a month or month and a half. The issue
has practically been resolved. Our legal base meets the demands of the EU on
this issue. In terms of giving us market economy status, the Europeans are
interested in how prices are established and how VAT is returned. Over the
past few months the administration of returning this tax has changed
drastically.
The prior dialogue with the EU has destroyed distrust in us. At the expert
level everything was agreed and confirmed and then on the political level a
number of decisions were adopted which changed things. Now it is important
to avoid that. Today they believe us, everyone really likes our statements,
but the key is implementation.

[Kulchynskyy] Did administrative regulation of prices for fuel and for meat
provoke any questions from the EU?
[Rybachuk] These questions did not come up in Brussels. After changes to the
budget were adopted, the cabinet was operating in an "all-hands-on-deck"
regime. Europeans also understand that we have a market economy that has
formed, but one in which not all of its segments are operating by market
rules. Even a superficial analysis of how prices for petrol jumped shows a
cartel exists.

Our normal approaches to solving problems are essentially different from
European ones. There they take a problem and analyse it, then they put it up
for the public to discuss, they hold consultations with interested parties
and only then do they announce their decision. But European politicians
understand that the situation the Ukrainian government finds itself in is
different from their own situation.

PROSPECTS FOR UKRAINE-EU TRADE

[Kulchynskyy] When can we expect a free trade zone with the EU?
[Rybachuk] Only after joining the WTO. I talked about this in Brussels, and
they are ready for this step. We expect to join the WTO sometime in the
autumn.

[Kulchynskyy] Will the EU increase quotas for Ukrainian goods this year,
taking into account our striving for European integration?
[Rybachuk] I can't cite specific figures, one must ask those participating
in the negotiations. As far as joining the WTO, the Economics Ministry has
already approved our quotas for steel and textiles. The European
Commissioner for Foreign Relations, Ms Ferrero-Waldner, in an informal
conversation on the prospects for the neighbourhood policy, assured us that
the EU gave countries with the status of neighbours access to its economic
pie - markets. That is, we can press for increased quotas, including for
agricultural produce. If we join the WTO, then it will be much easier to
hold these negotiations. At the same time, the standards of our produce
often do not meet European standards.

[Kulchynskyy] How serious are the disagreements among new and old
members of the EU?
[Rybachuk] I was at a discussion on the problems of France. The French
worry that with a wider EU, Europe will lose its spirit and its culture and
turn into a mere economic zone. One Brussels politician explained his
worries more simply. After a few glasses of good wine, he told me that
10 years ago, Europeans lived calmly and well-to-do, they were not
bothered by a single problem. And then volcanic changes started
happening. Young, energetic and aggressive countries appeared with
very cheap labour. And they frighten the residents.

EU ENLARGEMENT GENERALLY SUCCESSFUL

[Kulchynskyy] Euro-sceptics insist that after joining the EU, Western
corporations practically ruined small and medium business in their
countries.
[Rybachuk] This year, Polish farmers got big subsidies for the first time in
their lives. People in the Lithuanian government say that in one year of
membership in the EU the output of their agricultural enterprises has grown
by 12 per cent and profit by 60 per cent. I asked colleagues from Eastern
Europe if they felt the expansion of Western manufacturers, if they had been
dumping their synthetic sausages. They said things were sooner the other way
around. They've begun sweeping up Poland's produce - and the producers
are satisfied.

I do not think that there are no problems in Europe. You can always find an
Afro-American sitting next to a trash can, like in Soviet propaganda, and
say all of America lives that way. A year has passed since the 10 new
members joined, but one can speak of the big success of the project. None
of the new countries has a desire to leave, polls have not changed
drastically and there has not been massive migration of the labour force.

[Kulchynskyy] Has anyone counted the price that has to be invested to reach
European standards? How much exactly?
[Rybachuk] Right now Ukraine does not face the issue of access to resources
overall. We have a small foreign debt, and it is continuing to shrink. The
government can borrow on the internal market for ever lower rates and, most
important, the government has colossal support and offers from international
financial organizations. The president of the EBRD once said: "You are
asking is there is a limit to financing Ukraine? There isn't." The limit is
only our capability of putting together a great project. The World Bank can
give Ukraine over 700m dollars by 16 June to implement what is written in
the road map, without any other conditions.

In the future we could be talking about several billion dollars from the
World Bank. Right now the European Bank is talking about loaning 600m euros
by the end of the year. The president of the EBRD himself said that next
year it could be 1bn in credit. Now we have to make changes to legislation
to ease the procedure for Ukraine getting international credit. Today it is
extremely hard and in some cases five years passes from the start of talk
on a project to its completion. With the current rate of development and
changes this is simply inadmissible.

[Kulchynskyy] What are the procedures for EU citizens crossing the Ukrainian
border after the [temporary] cancellation of visa requirements? Tour
operators say they don't know how to register European tourists and say
border guards don't even know how to fill out their entry to Ukraine.
[Rybachuk] Anyone who tells a foreigner on the border that he does not know
anything about the no visa regime can register with the unemployment agency
the next day. There is a presidential decree and the state machine has
worked everything else out. Our decision has had a very positive effect - it
has speeded up our dialogue on easing the visa requirements for Ukrainians.

We will see great progress by the time of the EU-Ukraine summit in the
autumn at which Viktor Yushchenko will meet the British prime minister.
Europeans are talking about the possibility of giving a visa-free regime to
diplomats and on essentially making it easier for students and journalists
to get visas. Getting rid of visas has its price, but the Foreign Ministry
is receiving money which it lost in getting rid of consulate fees to the
budget. Attempts to monopolize access to president doomed

[Kulchynskyy] The new authorities are always stressing that they are a
single team and that all decisions are adopted together. At the same time
President Yushchenko criticized the actions of the National Bank of Ukraine
[NBU] over the sharp fall in the dollar. Can even the NBU not tell the head
of state of its intent to strengthen the dollar?
[Rybachuk] When I heard the dollar could cost 1.8 hryvnyas, I nearly fell
over. The president's remark lay in that we could have got to the new rate
more evenly, and not in one night. I think there were consultations. But the
following driving force was at play here: none of Yushchenko's team are
afraid of him. People in position today are his friends and colleagues. But
no matter what friends the president and people in the government are, they
cannot make any public statements on the rate of the currency without
agreeing it with the NBU, since that is their prerogative. And this message
was clearly sent by the president at the latest [government] conference.

[Kulchynskyy] Sometimes one gets the impression that other leaders in the
government are ignoring the president's decisions.
[Rybachuk] Yushchenko has a very interesting trait - he is a moralist. He
teaches each member of his team to make decisions independently and carry
responsibility for them, find compromises and ways out of situations. He
never willingly goes in for a conflict. The press writes about the rift
between [Prime Minister Yuliya] Tymoshenko and [National Security and
Defence Council Secretary Petro] Poroshenko or between [Justice Minister
Roman] Zvarych and the government. A spark gets out there and he tries to
put it out. A person who tries to monopolize Yushchenko, to influence him
from just one side, is doomed to failure. The president never believes just
one source of information.

[Kulchynskyy] What is your attitude to the strengthening of the hryvnya as a
financial person?
[Rybachuk] It would be logical to tie the hryvnya to a basket of currencies,
and not just to the dollar. Over the recent past, the NBU has bought
millions of dollars because demand for the hryvnya was higher than supply.
What happened brought the hryvnya closer to its real worth. Most Ukrainians
will only win from this in the long term. The government will not allow
further wavering of the hryvnya.

[Kulchynskyy] Why did the government take the most severe scenario of
reform after the revolution?
[Rybachuk] We received a country that was complicated and corrupt on all
fronts. We had to move fast. Yushchenko changed 18,000 leaders and it
turns out this was few. Now a lot of bureaucrats are holding onto the new
authorities with two arms, because they don't have to pay bribes higher up.
They keep them for themselves.

ON FOREIGN INTELLIGENCE LINKS

[Kulchynskyy] The foreign press is writing that the Security Service of
Ukraine [SBU] and Western agents helped the revolution. And that you were
their middleman. Is that true?
[Rybachuk] Of course not. Beginning with work at the NBU, I've always spoken
to representatives of the diplomatic corps. I told diplomats what was going
on. The fact that those diplomats informed their governments in real time is
no secret to me. I knew my analysis of the situation was getting to the
governments of those diplomats with whom I met.

[Kulchynskyy] [Russian exile Boris] Berezovskiy has said he financed the
Yushchenko election campaign. Is that true?
[Rybachuk] He had nothing to do with it. An innumerable number of "Lt
Shmidt's children" will be coming out now [a reference to a Soviet-time
literary work in which many people claim to be the children of a Lt Schmidt
in order to receive privileges]. -30-
===============================================================
22. UKRAINIAN CATHOLIC EDUCATION FOUNDATION: SAVE THE DATES
Rev. Borys Gudziak, Rector of the Ukrainian Catholic University,
Lviv will visit in the United States in November

Rev. Deacon Ihor Koshyk, Ukrainian Catholic Education Foundation
UCEF, Chicago, Illinois, May, 2005

Dear Mr. Morgan Williams,

The Ukrainian Catholic Education Foundation (UCEF) would kindly ask
you to put the attached Announcement into The Action Ukraine Report.

Our Foundation supports Catholic Education in Ukraine and our main
beneficiary is the Ukrainian Catholic University (UCU) in Lviv. The Rector
of the UCU, Rev. Borys Gudziak Ph.D., is a graduate of Harvard University
and is Ukrainian by descend. He fulfilled the dream of the late Patriarch
Josef Slipyj (the head of Ukrainian Catholic Church, died in 1984) to have
a full ranged Catholic University in Lviv.

Deacon Ihor Koshyk, Associate at UCEF, 773-235-8462.

SAVE THE DATES!

The Ukrainian Catholic Education Foundation is pleased to announce that
Rev. Borys Gudziak, Rector of the Ukrainian Catholic University, Lviv, will
be honored at events in the following cities this fall on the following
dates:

Saturday, November 5, 2005: Rector's Dinner in New York, New York
Wednesday, November 9, 2005: Rector's Dinner in Philadelphia, PA
Sunday, November 13, 2005: Rector's Luncheon in Chicago, Illinois
Thursday, November 17, 2005: Rector's Dinner in Parma, Ohio
Sunday, November 20, 2005: Rector's Luncheon in Detroit, Michigan

All friends and supporters of the Ukrainian Catholic University and the
Ukrainian Catholic Education Foundation, along with all other interested
persons, are welcome to meet Rev. Gudziak at these events.
Organizations are also most welcome to these events.

Please save these dates! -30-
-------------------------------------------------------------------------------------------------------
LINK: http://www.ucef.org/
===============================================================
23. UKRAINIAN LANGUAGE IMMERSION WEEKENDS
AT STATE UNIVERSITY OF NEW YORK IN NEW PLATZ
June 10-12, 2005; July 8- 10, 2005; July 22-24, 2005

Christine (Xpuctia) Demidowich, Livingston, NJ, May 2005

Hello! This is from The Soyuzivka Internet Newsletter, Vol.3, Issue 7.
Perhaps you'd like to include it in "THE ACTION UKRAINE REPORT."
I think it fits into the "Culture" category of your newsletter.

Bye, Christine (Xpuctia) Demidowich, Livingston, NJ, CRDemi@aol.com
------------------------------------------------------------------------------------------------------------
Ukrainian Language Immersion Weekends
Offered at State University of New York at New Paltz!

New Paltz University, located just 20 minutes away from Soyuzivka,
offers intensive weekend courses for 20 languages INCLUDING
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They need a minimum of 4-5 persons registered, 2 weeks in
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To book a room here at Soyuzivka, visit our website at
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===============================================================
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===============================================================
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The CD is available for $18.95 US. For more information or to order
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===============================================================
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