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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"

UKRAINIAN FIRST LADY ASKS BRITISH PRINCE MICHAEL AND
DIPLOMATS TO SUPPORT INTERNATIONAL SPONSOR PROGRAM:
'FROM HOSPITAL TO HOSPITAL'
Finding steady partners, sponsors for Ukrainian hospitals in
West European countries, in the USA and elsewhere.

"THE ACTION UKRAINE REPORT - AUR" - Number 492
E. Morgan Williams, Publisher and Editor
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C. and Kyiv, Ukraine, WEDNESDAY, May 25, 2005

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

1. UKRAINIAN FIRST LADY ASKS BRITISH PRINCE MICHAEL AND
DIPLOMATS TO SUPPORT INTERNATIONAL SPONSOR PROGRAM:
'FROM HOSPITAL TO HOSPITAL'
Finding steady partners, sponsors for Ukrainian hospitals in
West European countries, in the USA and elsewhere
TV News Reporter Lesya Sakada-Ostrovska
One Plus One TV, Kiev, in Ukrainian 1630 gmt 24 May 05
BBC Monitoring Service, UK, in English, Tue, May 24, 2005

2. UKRAINIAN POLICE SAY CHILD VICTIMS OF SEX TRADE SOARING
By Natasha Lisova, AP Worldstream
Associated Press (AP), Kiev, Ukraine, Tue, May 24, 2005

3. FIVE MILLION UKRAINIANS WORKED ABROAD IN YEAR 2004
Ukrainian News Agency, Kyiv, Ukraine, May 24, 2005

4. UKRAINE AND SPAIN PLANNING TO CONCLUDE BILATERAL
AGREEMENT ON SIMPLIFYING EMPLOYMENT PROCEDURES FOR
UKRAINIANS IN SPAIN
Ukrainian News Service, Kyiv, Ukraine, Tue, May 24, 2005

5. UKRAINE: INDUCTION OF FORTY U.S. PEACE CORPS VOLUNTEERS
TO TAKE PLACE IN KYIV ON MAY 25
Peace Corps Ukraine is largest U.S. Peace Corps program in the world
UNIAN, Kyiv, Ukraine, Tuesday, May 24, 2005

6. BRITISH PRINCE MICHAEL OF KENT VISITS THE KIEV
POLYTECHNIC INSTITUTE IN UKRAINIAN CAPITAL
Promised grants from his foundation for the most talented students
By Dmytro Belov, Journalist, "A British Prince Speaks Russian"
Kiyevskiye Vedomosti, Kiev, in Russian 21 May 05; p 2
BBC Monitoring Service, UK, in English, Tue, May 24, 2005

7. HISTORIC SCYTHIAN MOUNDS TREASURES BEING PRIVATIZED
IN DNIPROPETROVSK OBLAST - FIVE TO SIX TO A HECTARE
By Vadym RYZHKOV, The Day
The Day Weekly Digest in English, #17
Kyiv, Ukraine, Tuesday, May 24, 2005

8. UKRAINIAN PRESIDENT SAYS OIL CRISIS A "LESSON" TO CABINET
UNIAN news agency, Kiev, in Ukrainian 1622 gmt 24 May 05
BBC Monitoring Service, UK, in English, Tue, May 24, 2005

9. FREELANCE ADVISER TO VICTOR YUSHCHENKO DECLARES
PM TIMOSHENKO HARMS UKRAINIAN STATE
forUm, Kyiv, Ukraine, 24 May, 2005

10. UKRAINE'S POLITICAL RIFT BAD NEWS FOR RUSSIA AND THE WEST
Yushchenko, caught between his prime minister and the rest of the world
COMMENTARY: By Angela Charlton, Columnist
RIA Novosti, Moscow, Russia, Tue, May 24, 2005

11. BLACK SEA TV SAYS PLANS MADE TO REVIVE THE CRIMEAN
ECONOMY, RESTORE TSARS CRIMEAN PALACES
Black Sea TV, Simferopol, in Russian 1600 gmt 24 May 05
BBC Monitoring Service, UK, in English, Tue May 24, 2005

12. UKRAINE: PORT OF ODESA OPENS ONE-STOP BORDER AND
CUSTOMS SERVICE TO CURB CORRUPTION
By Olena ASTRAKHOVYCH, The Day
The Day Weekly Digest in English, #17
Kyiv, Ukraine, Tuesday, May 24, 2005

13. BLACK SEA CONTAINER MARKET UP 26% IN UKRAINIAN PORTS
OF ODESSA AND ILLICHEVSKI, INFRASTRUCTURE LIMITATIONS
No significant new container terminals are now being built in Ukraine
Lloyds List, London, UK, Tuesday, May 24, 2005

14. ZINCHENKO STATES THAT SPECIAL ECONOMIC ZONE CONCEPT
IN UKRAINE WILL BE REVISED IN DIRECTION OF GRANTING
PRIVILEGES TO HIGH-TECH ENTERPRISES
Ukrinform, Kyiv, Ukraine, Tuesday, May 24, 2005

15. UKRAINE: ITALIAN COMPANY SAID READY TO MAKE A STUDY OF
THE CONSTRUCTION OF BIOFUEL FACILITY IN DONETSK OBLAST
APK-Inform Information Agency
Dnipropetrovsk, Ukraine, Tue, May 24, 2005

16. UKRAINIAN CITIES INTEND TO ISSUES MUNICIPAL BONDS IN 2005
Ukrainian News Agency, Kyiv, Ukraine, Tue, May 24, 2005

17. BRITISH PROPERTY INVESTORS IN THE FORMER SOVIET UNION
Investors look for eastern promise in Ukraine, Crimea and beyond
Chris Partridge, The Independent
London, United Kingdom, Wed, May 25, 2005

18. UKRAINE: KINTO INVESTMENT FIRM CREATES SYNERHIA-2 FUND
Ukrainian News Agency, Kyiv, Ukraine, Tue, May 24, 2005

19. PRESIDENT OF INDIA KALAM TO VISIT UKRAINE ON JUNE 1-4
Anna Snihur-Hrabovska, Ukrinform, Kyiv, Ukraine, May 24, 2005

20 PRESIDENT OF TURKMENISTAN NIYAZOV BELIEVES UKRAINE
GOODS-FOR-OIL PRICES OVERSTATED
Itar-Tass, Ashbabat, Turkmenistan, Tue, May 24, 2005

21 UKRAINIAN PRESIDENT STATES THAT THERE IS NO PLACE FOR
XENOPHOBIA, ANTI-SEMITISM AND INTERNATIONAL ENMITY IN UKRAINE
Ukrinform, Kyiv, Ukraine, Tue, May 24, 2005.

22 EXHIBITION: JACQUES HNIZDOVSKY WOODCUTS
Thursday, May 26, 2005 (7 p.m.); Ukraine Embassy Washington
Svitlana Fedko Shiells, Chair
The Washington Group Cultural Fund
Washington, D.C., Monday, May 16, 2005

23. EXHIBITION: "THE ARTISTS' YES! TO UKRAINE"
Representing artists from all regions of Ukraine
ALLA ROGERS GALLERY
1054 31st Street NW - Georgetown
Washington, D.C., May 2005
==============================================================
1. UKRAINIAN FIRST LADY ASKS BRITISH PRINCE MICHAEL AND
DIPLOMATS TO SUPPORT INTERNATIONAL SPONSOR PROGRAM:
'FROM HOSPITAL TO HOSPITAL'
Finding steady partners, sponsors for Ukrainian hospitals
in West European countries, in the USA and elsewhere.

TV News Reporter Lesya Sakada-Ostrovska
One Plus One TV, Kiev, in Ukrainian 1630 gmt 24 May 05
BBC Monitoring Service, UK, in English, Tue, May 24, 2005

KYIV - [Presenter] Kateryna Yushchenko has decided for herself how the
first lady can benefit Ukraine - in healthcare. The first lady has become
the head of the Ukraine-3000 charity fund and presented its programme
called "From Hospital to Hospital".

There is not enough money for medicine in the state budget, so the fund
will look for sponsors abroad for Ukrainian hospitals. Lesya Sakada-
Ostrovska continues.

[Correspondent] A new charity project of the Ukraine-3000 fund, called
"From Hospital to Hospital", was presented at the art museum of the famous
Khanenkos patrons of arts on purpose. British Prince Michael of Kent, who
is a cousin of Queen Elizabeth, was present at the presentation. Kateryna
Yushchenko turned to the royal guest and diplomatic representatives,
asking them for assistance to Ukrainian medicine.

She noted that the state of healthcare in Ukraine is below European
standards, and emphasized that, according to statistics, one in every
three Ukrainians has health problems.

[Kateryna Yushchenko, in English, overlaid with Ukrainian translation] In
the next month we shall create a database of urgent needs, and we shall
look abroad for potential partners for Ukrainian medical institutions. I
call on you to assist us in finding medical institutions ready for
partnership in your countries and, if possible, to make contributions to
this programme's budget for the next five years. A healthy and flourishing
Ukraine is in the world community's interest.

[Correspondent] The Prince of Kent expressed a hope that a modern
centre for treating burns will be founded in Ukraine with British help.

[Michael of Kent in English, overlaid with Ukrainian translation] I am
involved in this programme in the UK. We pay special attention to children
with serious burns. This programme already works in the USA, the UK and
Russia. It would be logical to create a similar centre also in Ukraine as
the next step. [Passage omitted: US sponsors, Swiss assistance]
===============================================================
2. UKRAINIAN POLICE SAY CHILD VICTIMS OF SEX TRADE SOARING

By Natasha Lisova, AP Worldstream
Associated Press (AP), Kiev, Ukraine, Tue, May 24, 2005

KIEV - The number of Ukrainian minors who have become victims of
commercial sexual exploitation soared this year, an official said Tuesday.

More than 2,000 Ukrainian children and teenagers have become victims
of the sex trade so far this year, a 60-percent increase compared with the
same period last year, said Mikhaylo Tsymbaliuk, a top Interior Ministry
official. "It is a big tragedy for the state," Tsymbaliuk said at a news
conference in Kiev.

The Interior Ministry announced earlier this year that combating human
trafficking and commercial sexual exploitation of children would a key
priority. It also recently formed a special department tasked with combating
human trafficking.

A majority of minors abused by criminals in this former Soviet republic had
been forced into the sex tourist industry, child pornography and
prostitution, Tsymbaliuk said. "Criminals are making big money from this."

In a report published earlier this year, police researchers claimed that
some 20 percent of all Ukrainian prostitutes were teenage girls. They also
indicated that 18 percent of homeless children in Ukraine usually became
victims of sexual violence. "A mere 10 percent of the runaway children's
families are actually trying to find their kids," the document said.

Making the illicit industry more difficult to combat, Tsymbalik said, "the
commercial sexual exploitation of children often remains unreported
because victims are either scared or intimidated."

Also Tuesday, La Strada, a key international watchdog that fights
trafficking of women, claimed that some 8,000 children fell victim to sex
exploitation in Ukraine last year. According to the International
Organization for Migration, an U.N.-run body, 10 percent of all trafficking
victims who return to Ukraine are aged between 12 and 18.

Ukraine gained notoriety as a key starting and transit point for human
trafficking because of its porous borders and poor bilateral agreements on
borders crossing with neighboring Russia, Moldova and Belarus. The
European Union and the Organization for Security and Cooperation in
Europe [OSCE] have pledged to help Ukrainian police and border guards
to improve their effectiveness. -30-
===============================================================
3. FIVE MILLION UKRAINIANS WORKED ABROAD IN YEAR 2004

Ukrainian News Agency, Kyiv, Ukraine, May 24, 2005

KYIV - An estimated 5 million Ukrainian nationals were employed abroad last
year. Deputy Foreign Minister Valentyn Nalyvaichenko made this statement
during a telephone hotline at the Cabinet of Ministers. "There is a growing
tendency, for sure. In 2004, up to 5 million citizens of Ukraine," he said.

He added the estimated number is close to the true figure. The estimates
like this are made by the consular offices in foreign countries.
Nalyvaichenko denied the possibility that the true figure may be higher
because, as he put it, consular offices are working professionally and count
not only official migrants.

The deputy minister admitted that Ukrainians are still leaving their country
in search for better employment abroad. "Of course, the economic reason
and demand for Ukrainian labor force in Europe," he elaborated on the
reasons Ukrainians leave their country.

According to his estimates, from 1 to 1.2 million Ukrainians work in Russia
at the time the work force is in high demand there, from 220,000 to 230,000
work in Portugal (of them, 200,000 have legal employment), and from
120,000 to 130,000 work in Spain (50,000 on legal basis).

Last year around 50,000 Ukrainians received 5-year multi-entry visas to the
United States.

During the recent presidential elections it turned out that the number of
Ukrainians living and working abroad have been overestimated. For example,
most of the people considered to be Ukrainian nationals living in Australia
were in fact ethnic Ukrainians with Australian passports.

As Ukrainian News earlier reported, the Foreign Affairs Ministry opened a
center for protecting the rights of Ukrainians abroad in March. A total of
214,347 Ukrainians were registered abroad during the 2004 presidential
ballot and 123 polling stations were set up for them. In March 2004, a
number of political parties pushed for creation of a committee for
protection of labor migrants form Ukraine. -30-
===============================================================
4. UKRAINE AND SPAIN PLANNING TO CONCLUDE BILATERAL
AGREEMENT ON SIMPLIFYING EMPLOYMENT PROCEDURES FOR
UKRAINIANS IN SPAIN

Ukrainian News Service, Kyiv, Ukraine, Tue, May 24, 2005

KYIV - Ukraine and Spain are planning to conclude a bilateral agreement in
the near future on temporary migration of Ukrainian citizens to Spain for
employment with the aim of simplifying employment procedures. Deputy
Foreign Affairs Minister Valentyn Nalyvaichenko announced this via a
telephone hotline in Kyiv.

According to him, a group of experts will arrive in Ukraine on June 20 to
start the drafting of the relevant document jointly with Ukrainians experts.
According to him, the document is expected to facilitate protection of the
legal rights of Ukrainian citizens planning to work in Spain.

The agreement with Spain, where about 200,000 Ukrainian citizens presently
work (including about 50,000 working legally), will be based on the similar
Ukrainian agreement with Portugal.

According to Mr. Mr. Nalyvaichenko, Ukraine has already initiated talks on
employment of Ukrainians with Italy, Greece, Russia, and Poland.
Ukraine already has a similar agreement with the Czech Republic. -30-
===============================================================
5. UKRAINE: INDUCTION OF FORTY U.S. PEACE CORPS VOLUNTEERS
TO TAKE PLACE IN KYIV ON MAY 25
Peace Corps Ukraine is largest U.S. Peace Corps program in the world

UNIAN, Kyiv, Ukraine, Tuesday, May 24, 2005

KYIV - On Wednesday, May 25, 2005, at 2:00 p.m. a ceremony will take place
at the historic Ukrainian Teacher's House, 57 Volodymyrska Street in Kyiv at
which U.S. Ambassador John Herbst will administer the oath of service to
forty new Volunteers.

The new Volunteers will solemnly promise to promote Peace Corps' principles
of respect and friendship across national and cultural boundaries as they
serve in institutions across the country.

Peace Corps Ukraine is the largest Peace Corps Country Program of more than
seventy Country Programs worldwide. Media wishing to receive accreditation
are requested to call (044) 247-6840, contact person: Valentyna Pyrozhko.

Peace Corps was established in Ukraine based on a Bilateral Agreement signed
in May 1992 by Ukrainian President Leonid Kravchuk and American President
George Bush. The Peace Corps Ukraine Program offers practical language and
management skills education to Ukrainian people in support of the Ukrainian
Government's goals of entry into the global economic community and accession
to the European Union.

The new group of Volunteers will be working in the framework of two
projects - Youth Development and Economic Development. 23 Volunteers
to be sworn in under the Youth Development Project will teach youth between
the ages of 12 and 18 civic responsibility, healthy lifestyles, leadership,
computers and Internet technology, basic business skills, and good
environmental practices. They will work in rural and economically
disadvantaged areas in 9 oblasts of Ukraine.

17 Economic Development Volunteers will work in local universities, NGOs,
and municipalities teaching management skills and economics, facilitating
community development, strengthening participation in civil society by
teaching critical thinking, strategic planning, leadership, project design
and implementation, gender education, and other subjects.

Over the past thirteen years Peace Corps Volunteers in Ukraine have taught,
worked alongside and otherwise impacted more than one million Ukrainians. At
present 298 Peace Corps Volunteers are working in more than 160 Ukrainian
villages, towns and cities in 24 oblasts and the Autonomous Republic of
Crimea.

The ceremony will feature speeches by U.S. Ambassador Herbst and
dignitaries from the Ukrainian National and Regional Governments, including
representatives of the Ministry of Economy and European Integration, the
Ministry of Education and Science, and the Ministry for Youth and Sports.
Peace Corps is funded by American taxpayers.

The organization promotes peace and friendship among peoples of different
nationalities and cultures. During over four decades, Peace Corps has worked
in more than 120 countries. In Ukraine Peace Corps sponsors three main
program activities: Teaching English as a Foreign Language, Economic
Development, and Youth Development. -30-
------------------------------------------------------------------------------------------------------------
LINK: http://www.unian.net/eng
===============================================================
6. BRITISH PRINCE MICHAEL OF KENT VISITS THE KIEV
POLYTECHNIC INSTITUTE IN UKRAINIAN CAPITAL
Promised grants from his foundation for the most talented students

By Dmytro Belov, Journalist, "A British Prince Speaks Russian"
Kiyevskiye Vedomosti, Kiev, in Russian 21 May 05; p 2
BBC Monitoring Service, UK, in English, Tue, May 24, 2005

Prince Michael of Kent has visited the Kiev Polytechnic Institute during his
recent trip to Ukraine, a Kiev-based newspaper has reported. The prince
promised to help the institute to establish contacts with British
universities and to allocate grants from his own foundation for the best
students, the paper said.

The following is the text of the article by journalist Dmytro Belov,
published in the opposition daily Kiyevskiye Vedomosti on 21 May under
the title "A British prince speaks Russian":

The Kiev Polytechnic Institute [KPI], a national university, has been
visited by a grand-nephew of the last tsar from the Romanov dynasty [i.e.
Nicholas II], who founded the educational establishment 100 years ago.

The distinguished visitor was delayed for half an hour by traffic jams, but
this even had its good side. The prince's motorcade drew up at the main
entrance just as the clock on the main building chimed midday - in the
spirit of the monarchical past. A light shower also started up immediately.
The spirit of London reigned in Victory Avenue for at least two hours.

The first deputy rector, Yuriy Yakymenko, who welcomed His Royal High-
ness and led him on a tour of the institute, has a fine command of English.
But this was hardly needed, since the 62-year-old cousin of Britain's Queen
Elizabeth II and the Duke of Edinburgh was able to communicate no less
brilliantly in Russian.

But then, Mr Yakymenko was the only one His Royal Highness delighted
with the language of [Russian poet Aleksandr] Pushkin. In the corridors
and lecture halls, the distinguished visitor spoke to the students in
English only. If he noticed that the person he was speaking to had not fully
mastered the language of Shakespeare, he asked the female interpreter
to assist.

It was enough to turn up in a tie in order to follow the prince everywhere
and be a member of his "retinue". I was in luck. I proved to be the only
journalist who was allowed through everywhere, whom the prince honoured
with a handshake and who saw the lunch table, set with Ukrainian
delicacies -borshch [beetroot soup], pot-roasted meat and beer made by
a local brewer.

All this was much to the taste of the heir to the British throne (well,
actually, he forfeited his right to inherit the throne by marrying a
Catholic princess).

The conversation was relaxed and straightforward. So outwardly similar
to his blood relation, Nicholas II, the visitor encouraged the deputy rector
with: "You speak English far better than I speak Russian." Incidentally, I
could not detect the slightest trace of accent in his Russian. The prince's
soft, low voice is complemented by the pleasant way in which he expresses
his thoughts quietly and concisely, looking one in the eye.

The prince toured the KPI's museum and the local computer centre, and
noted that a century of tradition had been preserved while keeping pace with
modern technology. The distinguished visitor was also shown advances that
had been made in aerospace and medicine.

The prince found the first topic particularly interesting, since he is a
trained airman and pilot. Prince Michael offered the KPI his personal
patronage in establishing contacts with British universities and promised
grants from his foundation for the most talented students. -30-
===============================================================
7. HISTORIC SCYTHIAN MOUNDS TREASURES BEING PRIVATIZED
IN DNIPROPETROVSK OBLAST - FIVE TO SIX TO A HECTARE

By Vadym RYZHKOV, The Day
The Day Weekly Digest in English, #17
Kyiv, Ukraine, Tuesday, May 24, 2005

In the course of agrarian reform and land distribution 70% of the ancient
burial mounds of the nomadic peoples that populated the territory of what is
now Ukraine have become private property. Many of then were later razed to
the ground. According to Lidiya Holubchyk, director of the Dnipropetrovsk
Oblast Center for the Conservation of Historical and Cultural Treasures,
mounds are at risk today because of flawed Ukrainian legislation, and the
state is now finding it difficult to reclaim its unique historical
monuments.

Ms. Holubchyk says that it became possible to "privatize" the mounds
because of a number of drawbacks in the first draft of the Land Code. Its
authors, who banned the removal of "especially valuable lands" from state
ownership, failed to specify that the historical and cultural monuments
preservation service is one of the institutions to be consulted.

This error was corrected only in the second draft of the code that took
effect on January 1, 2002. "However, over the two years since the agrarian
reform got off to a start," says Ms. Holubchyk, "the regional land-
management authority has been allocating land without consulting us and
denying us any chance to participate in decision- making. As a result,
almost all the ancient mounds were included in the land plots being
distributed.

Further aggravating the problem was the fact that the agrarian reform was
literally being 'pushed through,' while all the maps that indicated
historical monuments had been drawn on the basis of visual estimates
rather than geodetic surveys."

The center's director says that law-enforcement authorities have been
looking into illegal allocations of the mounds for years. Since local courts
are passing relevant decisions in this connection, this process may take
years to conclude. Landowners do not want to part with their land, while
officials are in no rush to admit their mistakes, and even abuses. "It would
be possible to speed up the recovery of historical monuments by buying them
out, which is provided for in the law on cultural heritage preservation. But
this matter, and others, requires heavy funding," Ms. Holubchyk says.

President Yushchenko's recent instruction ordering a comprehensive
investigation into the way the authorities observe the law and the Cabinet's
guidelines on land management and conservation has given some hope to
the center's employees. Incidentally, the head of state entrusted this job
to National Security and Defense Council Secretary Petro Poroshenko, while
local commissions set up for this purpose would be headed by governors.

But it soon became clear that they were intending to deal with other
"especially valuable lands," such as health resorts, recreational
riversides, woodlands, and preserves. By all accounts, no one cares about
the barbarously destroyed historical mounds and prehistoric human
settlements, which number about 12,000 in Dnipropetrovsk oblast alone.
Ms. Holubchyk is going to plead with Governor Yuriy Yekhanurov about this
matter.

Still, the regional authorities are well aware of the problem of the
devastation of the "steppe pyramids" in which archeologists have found
masterpieces of Scythian gold, including the world-famous pectoral.

Nevertheless, Dnipropetrovsk regional bureaucrats often take a singular view
of many things. At a recent press conference Volodymyr Fenenko, who is in
charge of land resources management, complained about the commission's
performance, declaring that "unless they are plowed up," the dilapidated
mounds would...be spreading weeds and ambrosia in the fields, and in some
rural areas in the oblast there are still "five or six of them to the
hectare. -30- [The Action Ukraine Report Monitoring Service]
---------------------------------------------------------------------------------------------------------------
LINK: http://www.day.kiev.ua/137479
===============================================================
NOTE: Additional names for the AUR distribution list are always welcome.
===============================================================
8. UKRAINIAN PRESIDENT SAYS OIL CRISIS A "LESSON" TO CABINET

UNIAN news agency, Kiev, in Ukrainian 1622 gmt 24 May 05
BBC Monitoring Service, UK, in English, Tue, May 24, 2005

POLTAVA - Ukrainian President Viktor Yushchenko has said that the
government should learn lessons from the petrol crisis which broke out
on the oil market in Ukraine this May. The president was addressing a
news conference in Poltava today.

"We will regard this page as turned over at the moment, one would like
honest lessons to be learnt from this: not to look for reasons anywhere as
the reason is in oneself. This lesson should be accepted. I am confident
that Prime Minister Yuliya Tymoshenko and Deputy Prime Minister Mykola
Tomenko have already drawn these conclusions," Yushchenko said, when
asked to comment.

The president advised Tymoshenko and Tomenko to proceed from the
fact that a crisis occurred on the oil market in Ukraine, and that it was
artificial, provoked by administrative methods of keeping certain price
positions on some groups of oil refining products, primarily the price of
A-95 petrol. He added that as long as A-95 petrol prices were the same
as prices of petrol of lower grades, crises with A-95 would always occur.

"I say that there was no Russian interference whatsoever in this process,
nor was there any interference by certain Ukrainian circles," Yushchenko
said. "If administrative methods are used to keep a certain position on the
market, decisions which will be painful to both buyers and the authorities
will have to be made sooner or later," Yushchenko said, adding that a "delay
with this decision" led to the decision being "especially painful".

Yushchenko said he is confident that "had the authorities treated petrol
prices elastically at the beginning of the month (May) - the point is about
only one position - A-95 here - there would have been no crisis in Ukraine".
Yushchenko added that his statement was based on his talks with the
Russian oil traders and managers of the oil refineries in Ukraine.

[Tymoshenko previously accused the Russian oil traders of collusion in
raising fuel prices, while Tomenko hinted that some top Ukrainian officials
lobbying for Russian business were also involved.] -30-
-----------------------------------------------------------------------------------------------------------
LINK: http://www.unian.net/eng
===============================================================
9. FREELANCE ADVISER TO VICTOR YUSHCHENKO DECLARES
PM TIMOSHENKO HARMS UKRAINIAN STATE

forUm, Kyiv, Ukraine, 24 May, 2005

MOSCOW - In Moscow, discussing the report about economical situation
in Ukraine, Boris Nemtsov, the freelance adviser of the president of
Ukraine Victor Yushchenko, declared that [PM] Timoshenko harms
the Ukrainian state.

"She will destroy the country in the near future. Julia Timoshenko is the
most real and concrete enemy of the State system," asserts Nemtsov.
He proposed to send Timoshenko to the opposition.

The popular in Russia expert Andres [Anders] Oslund [Aslund] supported
Boris Nemtsov. "Victor Yushchenko should immediately remove
Timoshenko. There will be a plot in Ukraine, if Yushchenko does not do it.
She is introducing the oligarchic policy of Victor Yanukovich in the state,"
said Oslund.

In Oslund's opinion, "the most awful thing is that the majority of
Yushchenko's team has taken Timoshenko's side."

He also added that, Anatoly Kinakh, the first vice-premier, said that he
repeatedly heard in Brussels about Timoshenko's activity. "The actions
of the Ukrainian government at the head of Julia Timoshenko worries
the West." -30- [The Action Ukraine Report Monitoring Service]
===============================================================
10. UKRAINE'S POLITICAL RIFT BAD NEWS FOR RUSSIA AND THE WEST
Yushchenko, caught between his prime minister and the rest of the world

COMMENTARY: By Angela Charlton, Columnist
RIA Novosti, Moscow, Russia, Tue, May 24, 2005

PARIS - Ukraine has finally outgrown its decade-long, east-vs.-west identity
crisis. Ukrainians are no longer wondering whether to turn to Moscow or
Washington for prosperity. They're wondering whether they need the rest of
the world at all.

This quandary came close to all-out battle this weekend when
internationalist President Viktor Yushchenko angrily suggested that his
nationalist prime minister, Yulia Timoshenko, quit. They later insisted that
their unity remained uncompromised, but few appeared convinced.

The new identity crisis reflects Ukraine's increased confidence after last
December's voter-driven revolution, and has accomplished what diplomats
couldn't: It has put Russia and the West on the same side of the Ukraine
question, at least for now. Russian and European investors want access to
Ukraine's markets, even if it pits them against each other - and
Timoshenko's populist policies have them rattled.

Russia's reasons for concern are more obvious and immediate. Russian
companies are in no mood to lose their significant holdings in Ukraine in an
overly zealous "re-privatization" campaign. The two countries' economies
are so intertwined that any Ukrainian policy shift is bound to have
repercussions on Russia.

Saturday's showdown came at a meeting with Russian oil and gas
executives over Ukraine's extension of price caps on fuel for the sowing
season. Russian suppliers, who had agreed to the initial caps but not to
the Timoshenko-driven extension, slashed supplies in protest.

Yushchenko's subsequent outburst at his premier buoyed Russian
observers, and produced some of the most positive coverage of him in
the Russian media in years.

Western investors, meanwhile, are waiting in the wings, and many are
secretly rooting for the Russians - or at least hoping for some sign of
compromise signaling that it's safe to enter the Ukrainian stage.

The U.S. government, which made Ukraine a symbol of the democratic
regime change that President George Bush wants to see worldwide, is
watching closely, too. If the new Ukraine turns out as stagnant or statist
as the old one, Bush will need to cast about for another poster child.
That would also discredit democratic movements elsewhere in the former
Soviet Union, especially in Russia.

Yushchenko's problem is that Timoshenko's policies are highly popular
among Ukrainians - and his aren't. With parliamentary elections 10 months
away, this is no trivial matter. Yushchenko won western backing last fall
with pledges to clean up and step up privatizations and adopt European
standards and values, with an eye to EU and NATO membership.
Timoshenko is answering to Ukraine's factories and farmers, who say
they've had enough of outside interference.

The Ukrainians' position is understandable. Centuries of dominance by
outsiders (usually Russian) were followed by a decade of post-Soviet
"independence" that left Ukraine desperate and dependent on western aid
and Russian politics. But despite Timoshenko's rhetoric, Ukraine can't
climb out of this pit alone.

Russian observers draw parallels between today's Ukraine and Russia's
experiences in the 1990s, when Boris Yeltsin and his government's U.S.
advisors launched unpopular economic reforms and faced off against a
nationalist opposition that tapped voter frustrations. The result was years
of turmoil: the bloody 1993 events at the White House, runaway inflation,
rigged privatizations, and a president hopelessly alienated from his
population.

Yushchenko is in a stronger starting position than Yeltsin was. Ukraine has
already survived the toughest post-communist reforms, and is no stranger
to inflation or funny privatizations. A careful study of Russia's mistakes
over the past decade could help Yushchenko recognize and defuse threats
before they overtake him, and save his country from a similar struggle. The
question is whether Yushchenko is too focused on a future in Europe to look
for guidance in his eastern neighbor's past.

Aside from the parliamentary elections, Yushchenko's other impending
nightmare is constitutional reform. According to a deal struck during the
December's election crisis, he pledged to relinquish many presidential
powers in favor of more power for the premier. Even the deal's European
backers are getting nervous. They'd much rather have Yushchenko at the
helm than Timoshenko, who is more unpredictable and less beholden to
them.

Saturday's blowup may have been enough to scare Timoshenko into
compromises in the near term to keep her post. That would be good news
for Yushchenko, caught between his prime minister and the rest of the world.
===============================================================
11. BLACK SEA TV SAYS PLANS MADE TO REVIVE THE CRIMEAN
ECONOMY, RESTORE TSARS CRIMEAN PALACES

Black Sea TV, Simferopol, in Russian 1600 gmt 24 May 05
BBC Monitoring Service, UK, in English, Tue May 24, 2005

SIMFEROPOL - Crimean Prime Minster Anatoliy Matviyenko has announced
the government's plans to transfer Crimean palaces to the Ukrainian
Directorate for State Affairs [DUS], the Crimean private TV channel reported
on 1600 gmt 24 May. Matviyenko spoke at a session of the Crimean cabinet
held on 24 May.

At the session, Matviyenko informed Crimean government members about
his meeting with Ukrainian President Viktor Yushchenko in Kiev and unveiled
plans to revive the Crimean economy.

Massive investments are needed to restore palaces which belonged to the
Tsars and the historical heritage monument in Crimea, Matviyenko said at
the session, according to the TV. "There is an initiative to transfer the
palaces to the directorate, to turn these palaces into presidential
residences by convention and to try to fully restore these palaces using
state budget funds," Matviyenko added, the TV reported.

The channel pointed out that previous attempts by the previous president,
Leonid Kuchma, and the former DUS chief, Ihor Bakay, to turn several
Crimean places into presidential residences caused outrage among the
Crimean public.

The Directorate for State Affairs, established by Kuchma, is in charge of
logistics, transportation, housing and recreation of the president and
government officials. The new Ukrainian authorities have accused the
agency's previous leadership of embezzlement and machinations involving
state property to the tune of hundreds of millions of dollars. -30-
===============================================================
12. UKRAINE: PORT OF ODESA OPENS ONE-STOP BORDER AND
CUSTOMS SERVICE TO CURB CORRUPTION

By Olena ASTRAKHOVYCH, The Day
The Day Weekly Digest in English, #17
Kyiv, Ukraine, Tuesday, May 24, 2005

In early May the Odesa Commercial Seaport launched a one-stop border and
customs service. Addressing the opening ceremony, Odesa seaport director
Mykola Pavliuk said, "To organize a one-stop system for clearing containers
is one of the main requirements of the president's Stop the Contraband
program."

Transport Minister Yevhen Chervonenko believes that see-through doors and
constant video surveillance of inspectors working in the same building
should discourage bribe-taking in any form. "The one-stop service is not
simply a simplification of the customs clearance procedure. It is a triumph
of ethics to which we have aspired," the minister said.

Customs Service chief Volodymyr Skomarovsky and Border Service chief
Mykola Lytvyn were also present at the opening and did their best to provide
convincing arguments that the one-stop border and customs service will stem
the inflow of drugs, weapons, and contraband. They even proposed awarding
bonuses to border and customs officers who intercept contraband cargo and
rewarding them with a percentage of the contraband's value. The crowd of
businessmen and customs workers responded with whispers and murmurs
about the implications of this crackdown on would-be smugglers.

The opening of the one-stop border and customs crossing at the Odesa
Commercial Seaport was timed to coincide with the inauguration of the first
stage of Ukraine's first transit terminal. According to Yevhen Chervonenko,
Ukraine is facing strong competition and thus cannot afford to create
obstacles for the passage of containers; otherwise it will lose its
competitive edge in this business.

As the minister put it, Ukraine handles 2.3% of the world's container
traffic. "Containers are the cargo of the future. Cargo flows are like
water: they will bypass any obstacles and go anywhere but not through
Ukraine. This would be a crime against our children. We have to do whatever
it takes for cargo flows to pass through Ukraine, in particular the Port of
Odesa," the minister said.

The new terminal was built in record time with UAH 15 million in
investments. Another UAH 40 million will be invested this year. The transit
terminal occupies over 3.18 hectares. It has a parking lot for 100 trucks, a
single office building housing all the inspection services, a warehouse
module, and an inspection ramp allowing 9 container trucks to be inspected
at a time.

The terminal's throughput is over 500 trucks in 24 hours. Experts say that
the introduction of the one-stop customs and cargo terminal will reduce the
time of cargo processing and clearance by an average of 30%. Specifically,
the inspection and clearance time for import containers should be reduced
from 24-36 hours to 12, and for export and transit containers from 16-24
hours to 6. This should minimize truck downtime. According to Mykola
Pavliuk, the terminal's first stage alone will make it possible to increase
container truck traffic by 40% by year's end.

Although cargo owners are happy about the advantages offered by the
simplified clearance system, unlike the ministers and officials, they are
not as ready to believe that the system of kickbacks will die off that
easily.

There are mixed feeling in the region about the personnel purges undertaken
by the new heads of the Customs Committee. Not only has it removed many
professionals, it has also created an atmosphere of mistrust and suspicion,
which has had an impact on the performance of the customs service.

According to Odesa Customs chief Oleksandr Symonov, in the past few months
180 out of 903 employees of the former Black Sea Regional Customs have
been dismissed. Another 112 employees of the disbanded Black Sea Regional
Customs are being investigated by the police. Employees who are proved
innocent of all wrongdoings will be reinstated in their jobs. The Port of
Odesa currently has 5,600 containers, an all-time record.

In the near future two more commercial seaports in Odesa oblast - Illichivsk
and Pivdenny - will have their own transit terminals identical to the one
that has just opened at the Odesa Commercial Seaport. Odesa's terminals for
handling all hazardous chemical cargo will also be relocated to the Pivdenny
Port. -30- [The Action Ukraine Report Monitoring Service]
-----------------------------------------------------------------------------------------------------------------
LINK: http://www.day.kiev.ua/137495
===============================================================
13. BLACK SEA CONTAINER MARKET UP 26% IN UKRAINIAN PORTS
OF ODESSA AND ILLICHEVSKI, INFRASTRUCTURE LIMITATIONS
No significant new container terminals are now being built in Ukraine

Lloyds List, London, UK, Tuesday, May 24, 2005

LONDON - THE buoyant nature of the Black Sea container market is
evidenced by the strong throughput growth being experienced by almost
all ports in the region, including those in both Ukraine and Russia.

In the first quarter of this year container traffic at the Ukrainian ports
of Odessa and Illichevsk was reported to be up by around 26% compared
with the first quarter of 2004, while at Novorossiysk in Russia container
volumes were around 16% higher.

The biggest increase has, however, been seen in the Romanian port of
Constantza, only direct port of call for most of the main line Asia-Black
Sea services. In the first three months of this year the port handled
142,322 teu, 136% more than in the same period of last year.

The rapid increase in box traffic has highlighted the relative lack of
suitable port infrastructure in the region, especially in Ukraine and
Georgia.

Shipping lines active in the region highlight this as the main problem they
face and indicate that the situation could act as a serious constraint on
future trade growth.

There has been some investment in regional port infrastructure over the
past year which may help to alleviate regional port capacity issues.
The new Constantza South container terminal, operated by Dubai Ports
International group, is the biggest single development project so far.

In addition the Nutep terminal in Novorossiysk has been operating since
April last year and is the first specialised container terminal in the port.
Further expansion of both facilities is now under way.

However, .no significant new container terminals are being built in Ukraine
at the moment There are, though, a number of schemes at the project
stage, especially in the area round Illichevsk.

One of the factors restricting port handling capability is a lack of
container storage space inside the terminals. A partial solution might be
provided by increasing the capacity of off-dock facilities.

As an example the Delo group, which owns the biggest off-dock container
terminal in Novorossiysk, says it is allocating considerable investment
funds to expanding the facility and is increasing the trucking fleet that
serves the terminal. -30- [Action Ukraine Report Monitoring Service]
===============================================================
14. ZINCHENKO STATES THAT SPECIAL ECONOMIC ZONE CONCEPT
IN UKRAINE WILL BE REVISED IN DIRECTION OF GRANTING
PRIVILEGES TO HIGH-TECH ENTERPRISES

Ukrinform, Kyiv, Ukraine, Tuesday, May 24, 2005

KYIV - While on a working visit to the Donetsk region, State Secretary
Oleksandr Zinchenko familiarized himself with the work of the leading
national producer of refrigerators the Joint-Stock Company Nord. He highly
appraised the concept of creating the vertically integrated Holding Company
for development and production of refrigerating facilities and called on
other enterprises to adopt the Nord experience and be oriented to
implementation of the newest technologies, satisfaction of users' needs and
European standards of wage payment and creating conditions for workers.

While answering numerous questions about the future fate of privileges
within special economic zones and priority development territories,
Oleksandr Zinchenko noted that a concept of special economic zones'
and priority development territories' activities will be revised in order to
find a possibility to renew privileges for such high-tech branches, as
machine building, aircraft construction and development of software.

According to him, the main criteria for granting those or other privileges
to enterprises will be a transition from simple procession of raw materials
to making new products. Great attention will be also paid to how an
enterprise is oriented toward European standards of work and how it
implements social policies with regard to its workers and members of
workers' families.

According to the State Secretary, the Joint-Stock Company Nord, as an
enterprise, which implements the newest technologies into production and
integrates single-profile companies in different regions of Ukraine, also
may count on receiving privileges within the framework of the renewed
special economic zone. -30-
===============================================================
NOTE: Letters-to-the-Editor are welcome, send in one today
===============================================================
15. UKRAINE: ITALIAN COMPANY SAID READY TO MAKE A STUDY OF
THE CONSTRUCTION OF BIOFUEL FACILITY IN DONETSK OBLAST

APK-Inform Information Agency
Dnipropetrovsk, Ukraine, Tue, May 24, 2005

DNIPROPETROVSK - Italy is ready to make an investment into construction
of a biofuel production facility in Donetsk Oblast (east of Ukraine).

According to the local newspaper Donbass, such intent of the Italian party
was declared on May 23 during a visit of representatives of city
administration from the Italian city of Santa Severina to Donetsk Oblast.

During a meeting of the Italian delegation with the Mayor of the local city
of Mariupol (large seaport hub in the south of Donetsk region, on the Azov
coast) the Italian officials said that an executive from one of the major
Italian companies was going to visit Mariupol in a short time for a close
study of the investment project.

The facility, which is going to be [might be] constructed in the vicinity of
this coastal city, was intended to produce biofuels on the basis of
vegetable oil raw materials. The name of the Italian company concerned
was not specified. -30- [Action Ukraine Report Monitoring Service]
-------------------------------------------------------------------------------------------------------------
LINK: http://www.agrimarket.info/showart.php?id=25063
===============================================================
16. UKRAINIAN CITIES INTEND TO ISSUES MUNICIPAL BONDS IN 2005

Ukrainian News Agency, Kyiv, Ukraine, Tue, May 24, 2005

KYIV - Zaporizhia, Kharkiv, Dnipropetrovsk, Kirovohrad, and Nova Kakhovka
(Kherson region) intend to issue municipal bonds in 2005. Mykola Burmaka,
a member of the State Commission for Securities and the Stock Market,
announced this.

According to him, Zaporizhia and Kharkiv each plan to issue bonds for UAH
100 million during the second quarter of 2005. Burmaka did not state the
volumes of the bonds that Dnipropetrovsk, Kirovohrad, and Nova Kakhovka
are expected to issue. According to him, they are presently drafting the
relevant projects.

As Ukrainian News earlier reported, the Kyiv municipal administration
completed floatation of the five-year domestic bonds through Khreschatyk
Bank on December 31, 2003, selling bonds totaling UAH 100 million out of
the UAH 150 million it offered to float.

The Zaporizhia municipal council completed floatation of its UAH 25 million
in 2.5-year Zaporizhia municipal bonds through Industrialbank and UkrSibbank
on July 30, 2004. The bonds have a maturity of 2.5 years. The Donetsk
municipal council sold UAH 20 million in three-year municipal bonds through
the Khreschatyk bank and the Altera Finance financial company in late August
2004. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
17. BRITISH PROPERTY INVESTORS IN THE FORMER SOVIET UNION
Investors look for eastern promise in Ukraine, Crimea and beyond

Chris Partridge, The Independent
London, United Kingdom, Wed, May 25, 2005

Britain's army of property investors has swept eastward through Europe
over the last decade, from Spain to the Black Sea. The former Warsaw Pact
countries are now crawling with Brits looking for bargains. And now they are
reconnoitering the old Evil Empire itself " the countries that used to make
up the USSR. But will they finally meet their match?

Russia itself is still the economic dynamo of the region and is already
attracting investors, especially to the booming Moscow market. But new
interest is focusing on the newly independent states, especially the
Ukraine. Experts are advising caution, however. The states of the former
Soviet Union are still evolving their legal and political systems, and
investment is very risky.

John Miller, of surveyors and property consultants Thomas and Adamson,
has been operating in the Ukraine for 10 years, from the capital Kiev. 'Here
we had a country with a population of 50 million, a landmass larger than
France and a marketplace in which little or no development had taken place.
We could see that this place had to happen,' he says.

Thomas and Adamson have worked on offices, hotels and residential
developments in the Ukraine, neighbouring Moldova and Russia itself. The
main obstacle to development is officialdom, which still seems to operate in
the traditional Stalinist manner. 'There is a huge amount of bureacracy, but
the longer you are over there the better you understand it,' Miller says.

It can also be difficult to borrow money, another hangover from Soviet
times. 'Whereas our economy is based on debt, they buy with cash or on a
five-year mortgage,' Miller explains. 'Money tends to be hidden in a biscuit
tin under the bed because they operated in the black economy for so long.'

In Kiev itself, a huge rebuilding and modernisation programme has brought
on a property boom. 'Kiev has a huge residential market with flats going for
fairly inflated prices, currently about pounds 100 a square foot. That is
high by Ukrainian standards but you won't get much in the UK under pounds
250 a square foot,' Miller points out.

Unfortunately, British investors may have already missed the Kiev
opportunity. 'Someone I know bought a flat last year and has seen a 60
per cent increase in value already, but values will peak soon,' Miller says.

The other area of interest to British investors is the Crimea, famous not
only for the charge of the Light Brigade but as the favoured holiday
destination of the Soviet ýlite. Now its pretty Black Sea coastline is
slowly gaining attention.

'In the Crimea we are seeing a reasonable amount of development but
nothing like the standard of European holiday destinations,' Miller says.

Outside the Ukraine, the risks of property investment rise substantially.
Belarus is currently ruled by the dictatorial Alyaksandr Lukashenka, who
has just changed the law to allow him to continue in power. Belarus is
definitely a no-go area until true democracy returns.

Moldova, the tiny, strife-ridden republic sandwiched between the Ukraine and
Romania, has a surprisingly advanced legal system, but another feature of
Soviet times has been retained " the kickback. 'In practice a lot of things
are ahead of Ukraine but they are more dogged with corruption,' Miller says.
'One project we were involved in was delayed for years because the relevant
administrator was in jail and couldn't decide the matter until he got out.'

The situation gets worse the further away you go, according to Laura Brank
of law firm Chadbourne & Parke, who covers all the old USSR from her base
in Moscow. The areas that are next in line for investor attention are
Armenia and Georgia, despite their current political turmoil and internal
violence.

'Armenia and Georgia are very pretty and eventually these countries should
attract people, and skiing in the Caucasus is already getting popular,'
Brank says. 'Georgia has a young and impressive new president and if he
succeeds the country could be a good place to invest.'

Further away, the Asian republics known collectively as 'the Stans' are
moving towards Western-style legal systems, at least in theory. 'The legal
systems are developing nicely in the Stans and the laws are a bit more
Westernised due to extensive Western influence, but this does not
necessarily translate into practice,' Brank says. 'You can buy an apartment
but cannot buy the underlying land even though you are supposed to be
able to.'

The Stans aren't even very pretty, consisting mainly of windswept, treeless
steppes. For most property investors, they are a step too far indeed. -30-
------------------------------------------------------------------------------------------------------------
Thomas and Adamson, 020-7659 0448; Chadbourne & Parke, Kyiv,
+380 (44) 230 2534
===============================================================
18. UKRAINE: KINTO INVESTMENT FIRM CREATES SYNERHIA-2 FUND

Ukrainian News Agency, Kyiv, Ukraine, Tue, May 24, 2005

KYIV - The Kinto company has created a close non-diversified corporate
investment fund called Synerhia-2 (Synergy-2). Kinto disclosed this in a
statement, the text of which Ukrainian News has obtained. According to
Kinto's plans, the floatation of shares in Synerhia-2 will start in June.

"The Kinto asset management company, basing on the successful experience
of asset management of investment funds, will begin to float the shares of
the Synerhia-2 corporate fund from early June 2005," it is mentioned in the
statement. It is also stipulated in the statement that the law allows the
fund to invest from 50% to 100% of its funds in the equity securities of
local issuers.

"With the aim of fulfilling the requirements of the law, the new fund is
being created as a close type non-diversified entity, allowing it to invest
from 50% to 100% of funds in the equity securities of local issuers," it is
mentioned in the company's statement. The amount of the registered share
issue of the fund is UAH 25 million. It is also mentioned in the statement
that at the starting stage subscription for the shares of the Synerhia-2
fund will be floated based on their nominal price value - UAH 10,000.

Kinto is going to invest Synerhia-2's funds in the shares of industrial
companies of leading sectors of the local economy, particularly electricity,
machine building and metallurgy for an average period (3 years). Kinto
decided to limit the maximum amount of investments in one segment of the
fund's portfolio to 10% of the value of assets, which in the opinion of the
founder will considerably reduce the unsystematic risks of the investment
portfolio.

The fund was created for a period of up to February 28, 2008. The shares of
the Synerhia-2 fund will circulate on the First Stock Trading System (PFTS).

As Ukrainian News has reported, Kinto was founded in 1992. Kinto manages
the assets of the Dostatok (Prosperity), Unibudinvest, Synerhia and
Klasychnyi investment funds. According to the Agency for Development of the
Stock Market Infrastructure, Kinto's shareholders as of December 17, 2003
are EPIC Goldscheider and Wurmbock company registered in Vienna (Austria)
with 40% of the shares and a resident private investor with 17.69% of the
shares. Kinto reported a net profit of UAH 1.306 million for 2003. -30--
===============================================================
19. PRESIDENT OF INDIA KALAM TO VISIT UKRAINE ON JUNE 1-4

Anna Snihur-Hrabovska, Ukrinform, Kyiv, Ukraine, May 24, 2005

KYIV - On June 1 to 4 President Abdul Kalam of India will arrive on an
official visit in Ukraine, Foreign Ministry Press Service Agency Deputy
Head Dmytro Svystkov told journalists at a briefing on Tuesday.

A program of the Indian President's visit to Ukraine envisages a meeting
with President Viktor Yushchenko, negotiations with high leaders of the
State, during which urgent issues of bilateral relations between Ukraine and
India will be discussed, as well as regional and international issues.

Abdul Kalam is supposed to visit a number of industrial enterprises in the
Cities of Kyiv and Dnipropetrovsk, and he will also speak before Professors,
lecturers and students of the capital's higher educational establishments.
During the visit signing of bipartite documents in the sphere of
standardization and metrology, science and technologies, as well as in the
sphere of peaceful use of space is supposed to be staged.

India is included into the first dozen of world countries by a number of
indexes of industrial and agricultural production. India is a UN member,
member of the Non-Alignment Movement and a number of regional
organizations. In 2005 turnover between Ukraine and India made up over
700 M. USD. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
20. PRESIDENT OF TURKMENISTAN NIYAZOV BELIEVES UKRAINE
GOODS-FOR-OIL PRICES OVERSTATED

Itar-Tass, Ashbabat, Turkmenistan, Tue, May 24, 2005

ASHBABAT - The president of Turkmenistan believes the overstating by
Ukraine of prices for its products supplied as payment for Turkmen natural
gas supplies is unjustified. President Saparmurat Niyazov expressed this
view in a telephone conversation with Ukrainian President Viktor Yushchenko
on Monday, the press service of the Turkmen president reported on Tuesday.

In the conversation the two presidents expressed their mutual adherence to
the strengthening of cooperation between Turkmenistan and Ukraine on the
principles of equality and mutual benefit. Under the five-year
Turkmen-Ukrainian gas agreement for the period of 2002-2006 Kiev pays in
goods and equipment for 50 percent of the purchased Turkmen natural gas.

This year's contract envisages the supply of 36 billion cubic metres of gas
at 58 U.S. dollars per 1,000 cubic metres. It is a new gas price exceeding
the 2004 price by 14 dollars. It was set by Ashgabat last December "in
connection with exorbitant price rises for clearing goods and equipment."

Ukraine is the only buyer of Turkmen natural gas using clearing operations
in payment for the fuel. Russia's natural gas monopoly Gazprom with which
Turkmenistan has a 25-year gas contract (2004-2028) in April refused from
clearing and concluded a contract in 2005 envisaging exclusively currency
payments - 44 U.S. dollars per cubic metre.

The third buyer of the Turkmen gas Iran has been paying for the fuel
supplies in foreign currency since their 25-year contract took effect in
1997. For the last three years the payment was 42 U.S. dollars per cubic
metre. -30- [The Action Ukraine Report Monitoring Service]
===============================================================
21. UKRAINIAN PRESIDENT STATES THAT THERE IS NO PLACE FOR
XENOPHOBIA, ANTI-SEMITISM AND INTERNATIONAL ENMITY IN UKRAINE

Ukrinform, Kyiv, Ukraine, Tuesday, May 24, 2005.

KYIV - During a meeting with leaders of Jewish organizations in North
America President Viktor Yushchenko stated that there would never be place
for xenophobia, anti-Semitism and international enmity in Ukraine and he
assured that he would pay special attention to creation of worthy conditions
for satisfaction of moral, educational, cultural and social needs of all
ethnic communities, which exist in Ukraine.

Viktor Yushchenko reminded with gratitude the fact that over 300 persons
found shelter in the Central Synagogue in Kyiv during the orange revolution.
This, according to him, testifies to the fact that there is and there will
be "ethnic and civil mutual understanding" in the country.

"We hail diversity of cultures and traditions and we do everything possible
to harmonize educational, creative and other programs, Viktor Yushchenko
said, adding that national minorities living in Ukraine will always find
their partners in his person and in the Ukrainian Government.

Attending the meeting were US Ambassador John Herbst, Chairman of the
Association of Jewish organizations and communities in Ukraine Joseph
Zissels, State Deputy Secretaries Oleksandr Motsyk and Ivan Vasiunyk.

According to the State Statistics Committee, at present 103,600 Jews are
living in Ukraine. But according to Jewish organizations in Ukraine, the
number of the Jewish population in Ukraine is nearing 500,000. As many as
106 Jewish communities and 77 Jewish educational establishments are
functioning in Ukraine. -30-
==============================================================
22. EXHIBITION: JACQUES HNIZDOVSKY WOODCUTS
Thursday, May 26, 2005 (7 p.m.); Ukraine Embassy Washington

Svitlana Fedko Shiells, Chair
The Washington Group Cultural Fund
Washington, D.C., Monday, May 16, 2005

WASHINGTON - The Washington Group Cultural Fund in cooperation with
The Embassy of Ukraine invite you to an exhibit of woodcuts by JACQUES
HNIZDOVSKY (1915-1985) one of the foremost woodcut artists in America.

The exhibition will be held at The Embassy of Ukraine, 3350 M Street, N.W.,
Washington, D.C. on Thursday, May 26, 2005, starting at 7 p.m.

During the exhibit and reception, there will be an opportunity to purchase
the woodcuts on display. RSVP by May 25 by e-mail: nholub@ukremb.com
or telephone Svitlana Fedko Shiells (703) 506-4745. -30-
===============================================================
23. EXHIBITION: "THE ARTISTS' YES! TO UKRAINE"
Representing artists from all regions of Ukraine
Open until June 21, 2005

ALLA ROGERS GALLERY
1054 31st Street NW - Georgetown
Washington, D.C., May 2005

WASHINGTON - In a show of solidarity with the Ukrainian artistic community,
the ALLA ROGERS GALLERY proudly presents the first of a series of
exhibitions, "The Artists' YES! To Ukraine." The exhibition will represent
artists from all regions of Ukraine, painting in a diverse spectrum of
styles and expressions. The exhibition iis now open and will run until June
21, 2005.

The past eight months has been a momentous and historic time for Ukraine.
The Orange Revolution prevailed and the color of revolution worldwide has
become orange. The gallery stands in support of the positive changes in
Ukraine. The gallery celebrated its Fifteenth Anniversary on April 26,
2005. -30-
------------------------------------------------------------------------------------------------------------
ALLA ROGERS GALLERY, American and European Art - Contemporary
Photography, 1054 31st Street NW - Georgetown, Washington, DC 20007
===============================================================
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http://www.bleyzerfoundation.com.
2. Law firm UKRAINIAN LEGAL GROUP, Irina Paliashvili,
President; Kiev and Washington, general@rulg.com, www.rulg.com.
3. ESTRON CORPORATION, Grain Export Terminal Facility &
Oilseed Crushing Plant, Ilvichevsk, Ukraine
4. BAHRIANY FOUNDATION, INC., Dr. Anatol Lysyj, Chairman,
Minneapolis, Minnesota
5. KIEV-ATLANTIC GROUP, David and Tamara Sweere, Daniel
Sweere, Kyiv and Myronivka, Ukraine, 380 44 298 7275 in Kyiv,
kau@ukrnet.net
6. VOLIA SOFTWARE, Software to Fit Your Business, Source your
IT work in Ukraine. Contact: Yuriy Sivitsky, Vice President, Marketing,
Kyiv, Ukraine, yuriy.sivitsky@softline.kiev.ua; Volia Software website:
http://www.volia-software.com/ or Bill Hunter, CEO Volia Software,
Houston, TX 77024; bill.hunter@volia-software.com.
7. ODUM- Association of American Youth of Ukrainian Descent,
Minnesota Chapter, Natalia Yarr, Chairperson
8. UKRAINIAN FEDERATION OF AMERICA (UFA),
Zenia Chernyk, Chairperson; Vera M. Andryczyk, President;
Huntingdon Valley, Pennsylvania
9. UKRAINE-U.S. BUSINESS COUNCIL, Washington, D.C., Van
Yeutter, Cargill Inc., Interim President; Jack Reed, ADM, Interim
Vice President; Morgan Williams, SigmaBleyzer, Interim Secretary-
Treasurer
10. UKRAINIAN AMERICAN COORDINATING COUNCIL,
(UACC), Ihor Gawdiak, President, Washington, D.C., New York, NY
11. U.S.-UKRAINE FOUNDATION (USUF), Nadia Komarnyckyj
McConnell, President; John Kun, Vice President/COO, Washington,
D.C.; Markian Bilynskyj, VP/Director of Field Operations; Kyiv,
Ukraine. Web: http://www.USUkraine.org
==============================================================
PUBLISHER AND EDITOR
Mr. E. Morgan Williams, Director, Government Affairs
Washington Office, SigmaBleyzer Private Equity Investment Group
P.O. Box 2607, Washington, D.C. 20013, Tel: 202 437 4707
mwilliams@SigmaBleyzer.com; www.SigmaBleyzer.com
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Director, Ukrainian Federation of America (UFA)
Coordinator, Action Ukraine Coalition (AUC)
Senior Advisor, U.S.-Ukraine Foundation (USUF)
Interim Secretary-Treasurer, Ukraine-U.S. Business Council
Publisher, Ukraine Information Website, www.ArtUkraine.com
& www.ArtUkraine Information Service (ARTUIS)
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