"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"

ISSUE NUMBER 500
THE ACTION UKRAINE REPORT - AUR
January 2003 to June 2005

Our very special thanks to the many readers who have stayed with us
through the past very exciting thirty months, to the hundreds of persons
who have written us asking to be added to the distribution list, to our
sponsors and to those who write and strongly urge us to keep on
publishing the AUR. The 'action' in Ukraine leaves us no choice.

"THE ACTION UKRAINE REPORT - AUR" - Number 500
E. Morgan Williams, Publisher and Editor
morganw@patriot.net, ArtUkraine.com@starpower.net
Washington, D.C. and Kyiv, Ukraine, SUNDAY, June 12, 2005

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

1. "CHANGE IS STILL VERY MUCH IN THE AIR"
REFLECTIONS: by Bill Gleason
Published by The Action Ukraine Report - AUR
Washington, D.C., Sunday, June 12, 2005

2. NEW GOVERNOR ARSEN AVAKOV SEES KHARKIV REGION AS
BRIDGEHEAD FOR REFORMS IN UKRAINE'S EAST
Says he hated former authorities for "depriving people of faith and ideals"
Interview with Governor Avakov by Larysa Salimonovych
Ukrayina Moloda, Kiev, in Ukrainian 2 Jun 05; p 5
BBC Monitoring Service, UK, in English, Sun, Jun 05, 2005

3. RUSSIA ADDRESSES ISSUE OF ITS NEIGHBORS JOINING NATO
By Steve Gutterman, AP Online
Moscow, Russia, Fri, Jun 10, 2005

4. UKRAINE TO PRESS AHEAD IN DRIVE TO JOIN EU
By Stefan Wagstyl, East Europe Editor
Financial Times, United Kingdom, Fri, June 10 2005

5. UKRAINE MACROECONOMIC SITUATION - MAY 2005
MONTHLY REPORT: by Iryna Piontkivska, Edilberto L. Segura
SigmaBleyzer Private Equity Investment Group
Kyiv, Ukraine, June, 2005

6. EUROPE AND RUSSIA ON POST-SOVIET TERRITORY:
BEFORE AND AFTER EU CONSTITUTION REFERENDUMS
By Alexei Makarkin, Deputy Director General at the
Center for Political Technologies, for RIA Novosti
RIA Novosti, Moscow, Russia, Tuesday, June 7, 2005

7. AMERICA HAS BIG STAKE IN SUPPORTING DEMOCRACY IN
FORMER SOVIET REPUBLIC OF GEORGIA
By James V. Wertsch, Director of International and
Area Studies, Washington University in St. Louis
University Communications, Washington University in St. Louis
St. Louis, Missouri, Wednesday, June 8, 2002

8. RUSSIAN GOVERNMENT SETS SIGHTS ON 'SUBVERSION'
Demands by the security service chief that NGOs must be curbed
By Fred Weir, Correspondent of The Christian Science Monitor
The Christian Science Monitor, Boston, MA, Wednesday, Jun 1, 2005

9. UKRAINE: HOME, SWEET HOME
Crimean Tatars Want Restored Autonomy, Not Statehood
By Mykyta Kasyanenko, Symferopol
The Day Weekly Digest in English, #17
Kyiv, Ukraine, Tuesday, May 24, 2005

10. MOLDOVAN PRESIDENT SAYS UKRAINE'S DNIESTER PLAN
SHOWS YUSHCHENKO'S "PERSONAL COURAGE"
Infotag news agency, Chisinau, Moldova, in Russian, 10 Jun 05
BBC Monitoring Service, UK, in English, Fri, Jun 10, 2005

11. BRITISH UNIVERSITY OPENS MBA PROGRAMME IN KIEV
UNIAN news agency, Kiev, in Ukrainian 1458 gmt 8 Jun 05
BBC Monitoring Service, UK, in English, Thu, Jun 09, 2005

12. UKRAINE: LAVRA TO BE STRUCK OFF UNESCO LIST?
A massive cave-in in the monastery catacombs
By Natalia Melnyk, The Day
The Day Weekly Digest in English, #19
Kyiv, Ukraine, Tuesday, 7 June 2005

13. VILKOVO, UKRAINE: VENICE ON THE DANUBE
Save the "paradise of reeds and fish"
Traveler's Notes: by Dmytro Antonhyuk
Kyiv Weekly, Issue #22 (162), Kyiv, Ukraine, Friday, Jun 10-17, 2005

14. UKRAINIAN-POLISH CEMETERY DISPUTE STILL UNRESOLVED
TV Polonia, Warsaw, in Polish 1500 gmt 10 Jun 05
BBC Monitoring Service, UK, in English, Fri, Jun 10, 2005

15. CRIMEA: THE TOURISTS ARE COMING
By Natalia Melnyk, The Day
The Day Weekly Digest in English, #19
Kyiv, Ukraine, Tuesday, 7 June 2005

16. MOZART'S CONNECTION TO UKRAINE
Culture & History: by Stanislav Tsalyk
Kyiv Weekly, Issue #20 (160), Kyiv, Ukraine, May 27-Jun 3, 2005

17. WEBSITE: PICTURES OF KIEV
By John Farrar, Travel Photographer, pictures@virtualkiev.com
Kyiv, Ukraine, Saturday, June 11, 2005

18. UKRAINE: HRYHORIY SKOVORODA THE TRAVELING PHILOSOPHER
Taste of Life: by Serhiy Shevchenko
Kyiv Weekly, Issue #22 (162), Kyiv, Ukraine, Jun 10-7, 2005
===============================================================
1. CHANGE IS STILL VERY MUCH IN THE AIR

REFLECTIONS: by Bill Gleason
Published by The Action Ukraine Report - AUR
Washington, D.C., Sunday, June 12, 2005

Alexis de Tocqueville, the parapethetic Frenchman who observed American
society during the early years of the Republic, observed that the worst
moment for a bad government was when it started to reform itself. Those
words came back to me many times during my recent two week visit to Kyiv,
where I delivered a series of lectures (by invitation) at the Diplomatic
Academy.

The stay coincided with a burst of late spring warmth that transformed an
already beautiful city, laden with chestnut trees in full bloom, into a
spectacular landscape. A landscape that seemed to mirror the continuing
afterglow of the Orange Revolution, with the Maidan, heart of the Revolution
last December, now awash in kiosks pedaling orange memorabilia of all sorts
to regale the passersby.

By the time I reached Ukraine, however, criticism of the Yushchenko
government was in the air. Indeed, during my stay a rift between Yushchenko
and his Prime Minister, Yulia Tymoshenko -- a rift centered around how to
handle an energy (gas) shortfall delivery from Russia -- heightened
speculation that the new regime was in choppy waters, perhaps even about
to capsize.

Some of that criticism echoed complaints in the West, in influential sources
by influential people: that economic reform had stalled even before it got
under way and that internal rivalries within the Yushchenko administration
threatened to overwhelm the charismatic President, with unsavory
implications for wary foreign investors, still entrenched along the
sidelines at a moment when Ukraine desperately needed a sharp increase
in business activity and growth.

What are we to make of all this, I asked myself during my talks with many
friends and colleagues from Kyiv-Mohyla Academy (where I taught for 5 years
in the 1990s) and from the Diplomatic Academy and elsewhere. At the risk of
seeming unduly serene in my perceptions, here are a few of the comments that
seemed especially insightful at this unprecedented moment in Ukrainian
history.

FIRST of all, the Revolution is just beginning, and like all Revolutions,
popular expectations can and often do exceed reality or the capacity of the
leadership to deliver the goods, so to speak. This is particularly true in
this instance, I think, because, as de Tocqueville argued long ago,
Yushchenko and his ministers are up against a very bad -- as in criminally
corrupt -- regime that was dug in for years.

Two points here. First, the first ten years of the American Republic (the
1780s) was characterized by drift bordering on chaos and a near breakdown
of the government machinery, a breakdown that compelled American leaders
to convene a constitution convention in 1787. Why then do we forget our own
history and apply seemingly utopian labels to Ukraine, one Mohyla political
scientist asked? Revolutions are by nature messy things, no matter the
seeming ease of the initial transition or transformation.

Secondly, and relatedly, if there is anything truly blocking reform aside
from splits within the ministry and a coalition of parties that does not
agree on essentials (all true), it is the continued existence of the
chinovniki in all walks of life and in all institutions, including the best.

Again, I was reminded of this fact by the Head Librarian at Mohyla, who
said over lunch that Ukraine was still a land of Nikolai Gogel's petty and
tyrannical bureaucrats whose Soviet-styled mentality had not changed one
whit since the collapse of the former super power in 1991.

"Even Mohyla has them," she sighed, and I had to agree. And this, she
added quickly, could undo the gains of the revolution faster than anything
else, even assuming an agenda of reform and its eventual implementation.

Yet, despite this generational obstacle that would change only with the
passage of time, a couple major developments had taken root, I discovered
in my talks along the way. For ONE thing, a sea change had occurred within
the community of Ukrainian intelligentsia, a change having to do with
self-perception rooted in centuries of subservience to Moscow.

"It was incredible," my friend (a philosopher from the Academy of Sciences
and in the Institute of Philosophy) said on the final day in Kyiv, "but we
will never again view ourselves as inferior in any way to Russia and Russian
intellectual culture."

And, I thought, that is a shift of epohal proportions with permanent
implications for Ukraine for the simply reason that the intelligentsia still
play a role in society all out or proportion to their numbers. If, in other
words, the Ukrainian intellectual elite no longer "see" Russia as the Big
Brother (however subconsciously or half-heartedly), then history has been
made and will not be undone. And for that the Orange Revolution can take
credit.

FINALLY, my philosopher friend had another piece of advice for the West,
advice seconded by other intellectuals with whom I spoke. And that was to
take out exchange programs and tailor them to the practical needs of Ukraine
in order to derive maximum and expeditious results. "I never would have
made that recommendation five years ago," he said, "but time is precious
now and we must act efficiently if Ukraine is to benefit from expertise of
all kinds and points of view."

Again, I thought to myself, this kind of recommendation may not receive the
kind of fanfare of investor proposals and business donations. But, within
itself, it contains a new way of thinking about the relationship between the
intellectual community and the greater whole, between the world of thought
and the world of action. And in that there lies a revolution no less
notable than the institutional or political one commentators love to talk
about or conceptualize.

In the end, I left Ukraine convinced that while nothing is certain, change
is still very much in the wind, and the revolution continues in ways that
often is not seen or measured easily from the outside or beyond. -30-
------------------------------------------------------------------------------------------------------------
Dr. William Gleason is Chair of the Advanced Ukrainian Studies
and Coordinator, Eurasian Studies, Foreign Service Institute
U.S. Department of State, gleasonb1@aol.com. The article above
represents his personal comments regarding his recent trip to Ukraine
written at the request of The Action Ukraine Report - AUR.
==============================================================
2. NEW GOVERNOR ARSEN AVAKOV SEES KHARKIV REGION AS
BRIDGEHEAD FOR REFORMS IN UKRAINE'S EAST
Says he hated former authorities for "depriving people of faith and ideals"

Interview with Governor Avakov by Larysa Salimonovych
Ukrayina Moloda, Kiev, in Ukrainian 2 Jun 05; p 5
BBC Monitoring Service, UK, in English, Sun, Jun 05, 2005

Kharkiv Region governor Arsen Avakov has described aircraft construction
as a key priority in the region's development. Interviewed by a Ukrainian
daily, Avakov praised Kharkiv as the "intellectual capital of Ukraine",
which is the most receptive to the new authorities' reforms in eastern
Ukraine. Asked why he, a prosperous businessman, put his wealth on the line
by supporting the Orange Revolution, he said he hated the former authorities
for "depriving people of faith in ideals".

The following is the text of an interview with Avakov by Larysa Salimonovych
entitled "Arsen Avakov: Kharkiv is the gateway to the east for the new Kiev
authorities" and published in the Ukrayina Moloda newspaper on 2 June;
subheadings are as published:

The appointment of 41-year-old Arsen Avakov to the position of head of the
Kharkiv Regional state administration in a way came as a surprise to the
country's political and business circles. Ordinary residents of Kharkiv
Region shrugged their shoulders just the same. They regarded this personal
choice made in Kiev only as a tactical step by the president, as it was
inappropriate for him to be at odds with the "orange oligarch".

This doubt was most likely to be the result of a certain mentality. The
system previously admitted only career administrators to rule one of the key
Ukrainian regions. But it is even horrible to think in this case: "an owner
of factories, newspapers and ships" [line from a Soviet children's poem
referring to a millionaire] who does not follow the tradition of pretending
to be a disinterested person and declares his intention to return moral and
ethical values, a business climate and self-confidence to society instead of
hackneyed familiar economic slogans. He is the kind of a person who is a
steely pragmatist and incorrigible idealist at the same time.

It turned out later that the new chief's ideology has the form of
well-established management in the practical dimension. Avakov does not
undertake any business until he assesses its final result, he does not
tolerate long reports with an abundance of notions he does not understand,
and he does not promise anything for only one reason: the ability to inspire
hope into human souls is an integral part of the image of Ukrainian
officials.

HATER AND IDEALIST -----
[Salimonovych] Mr Avakov, you have an image of a successful person: banker,
businessman, industrialist, man from the power-engineering sector, owner of
TV companies. It gives grounds to admit that you were at least able to
co-exist with the former authorities within the same living space and that,
frankly speaking, they found no fault with you. But despite this, the fact
remains: you openly took the side of the opposition during the [Orange]
Revolution, though there we not many of those who doubted victory of the
"blue-and-white" [colours of defeated presidential candidate Viktor
Yanukovych's campaign] in Kharkiv. Why does a businessman need troubles
of this kind?

[Avakov] Do you know the reasons for my hatred to the former authorities and
the reasons for my going into opposition to them? I got everything I have in
my life not thanks to the regional administration or the authorities from
the capital, but thanks to the people who worked together with me and who,
despite many clumsy economic laws, achieved something with their own work
and got benefits. I also hate the authorities because they deprived people
of faith in ideals. They killed the belief that a man is not a wolf to
another man and that money does not rule this world.

[Salimonovych] Is the image of an idealistic businessman a result of your
internal disposition and philosophy, or is it unexpectedly successful
self-advertising?

[Avakov] I am deeply convinced that a harmonic unity of ideals supported by
a certain material basis is the foundation of any social movement. Those who
studied Marxism-Leninism and political economics at old Soviet universities
referred to them as the basis and the superstructure. I would now formulate
this idea in the following way: moving forward is impossible without
concentrating ideals in a certain material environment, and it will have no
prospects if it is not based on a concrete material foundation. Any idea
should have material support. On the other hand, any wealth should have an
internal core and morality in its basis, otherwise it will be depressive in
its essence.

There is another peculiarity of the new authorities' philosophy: these
authorities are for the people. They will work for them, regardless of the
people's attitude to them, of whether they like or dislike those picketing
under their window. We have come to ensure better life for a retired person
anyway, regardless of whether he wants it or not, whether he is captured by
his illusions or not.

[Salimonovych] Your predecessor was often accused of serving his patron
from the capital more than serving his native region. Have you already
defined your priorities?

[Avakov] It is necessary to serve the country, but not the president or the
government. Serving only the president has no sense to me. I support him
for the sake of the ideas he declares. I came to this ungrateful work which
deprived me of peace and sleep for this purpose.

[Salimonovych] Can an idealist in our completely pragmatic world expect a
significant victory?

[Avakov] This is a rhetorical question, but not the key one for me. If I did
not have faith in this victory and in these ideals, I would never have
accepted the proposal to become the regional leader. I have faith in things
I do; otherwise it would not have been interesting for me to live.

[Salimonovych] Does the idealistic philosophy work in practice? I understood
from your recent statements in the media that you had intentionally avoided
public analysis of your first "100 days" in the new position. Do you have
nothing to present as your merits?

[Avakov] I think about this the least now. I simply try to work within the
determined system, having positive results. But it is too early to present
it as my merit. In my opinion, first of all, we have succeeded in changing
the climate which dominated in administrative staff circles. I am convinced
that all other changes begin with this. This is the main essence, and one
cannot seriously discuss anything else.

Yes, we have industrial progress, but it is secondary in reality, and I
would not present it under the "brand" of the authorities' qualitative
changes. It is more likely to be other people's merit. We should now make
corrections in the basic and fundamental points, and then move forward.

FIRST WINGS, THEN TANKS -----
[Salimonovych] Viktor Yushchenko recommended regional leaders to
concentrate their attention on some directions of work and thus to
demonstrate their success in the near future. What is the choice of your
team?

[Avakov] FIRST, it is changing the business climate in society. This is a
fundamental point, and I think that we shall succeed.

SECOND, it is, of course, radically obvious and realistic. We singled out
aircraft building within this growth. A peak of its activity is now being
observed, and this is why a have a model plane, but not, let us say, a tank
in my office, though I emphasize that the problem of armour production is
now effectively discussed at the national level as well.

Why do we want to achieve radical success at one of the giants of the
aircraft-building industry? It will be automatically followed by cooperation
with a larger number of enterprises. There are more than 30 of them in
Kharkiv Region. There are even more of them in Ukraine.

If we succeed in improving the situation at the [Kharkiv Tractor Plant] KTP,
it will further lead the whole economic sector, including science and
education. [Man Group chief] Mr Man recently visited me, intending to
consider the issue of immense investment. It concerns half a billion
dollars. It means that projects are developing around this idea, and they
enable us to manufacture not one-and-a-half, but 15, 20 or 30 planes a year.
This is our super-task.

The THIRD objective is related with increasing salaries. It mainly concerns
not the increase on Kharkiv residents' incomes, but the changed philosophy
of employers, who must understand this process and take salaries out of the
shadow sector to make them legal. We set the task of supporting both
state-owned enterprises and private business (by the way, people from the
private sector pay large sums, but conceal them from the state) to make the
average salary in the region at least 800 or 900 hryvnyas [160 to 180 US
dollars] a month.

The FOURTH priority is a consequence of the first one: the moral situation
in society. It includes development of educational and cultural spheres and
public attitude to these things. This is why we mentioned libraries. A
person from any inhabited locality has the right to get this information
opportunity (if he has high moral characteristics or educational needs).

We have been preparing for the implementation of this project for a long
time and finally came to a concrete scheme. The objective is as follows: to
prepare premises, to hire people, to make provisions for their salaries, to
provide initial funds which we are going to search for in charitable
organizations and to include the sums of their salaries in the [local]
budget.

Development of other ideas began on the basis of these ones. Miraculous
things began to happen in Krasnyy Kut District when this cultural layer was
touched. We have poetesses there, books are published, soirees are
conducted, and people finally recalled that Ivan Mazepa had been "crowned"
there as the hetman. Interest in our roots has emerged in every district
here. It has a lot of profound sense indeed, as this patriotic passion will
surely yield positive results.

ARSEN AND HIS TEAM -----
[Salimonovych] How did you manage to form a team capable of working
within this precise administrative scheme?

[Avakov] Our process of appointments lasted for a long 100 days. What can
we say? There are pluses and minuses about the fact that all former leaders
had to be changed. Many of them fell victim to their conformism and acting
against their own conscience. My main objection to the old authorities is
the fact that they made people compromise their moral qualities through
requirements by state leaders. Thus they completely distorted and
demoralized society.

This is why highly-professional people who cut deals with their conscience
and committed grave or small crimes against their compatriots should be
suspended from power (I absolutely agree with the president on this point).
I am deeply convinced that the worthiest ones will find positions in this
life in half-a-year.

The age of newly appointed officials ranges broadly. The oldest one is 56,
the two youngest ones are 26. Despite all my concerns, the latter ones are
among the best.

I recognize that personnel selection process is very difficult. But there
are no people with whom I am sharply dissatisfied among those we appointed
to the positions of district state administration heads. Yes, many of them
are learning and making mistakes, but we are trying to help them. After all,
they got a hard share of work. For example, we have districts where up to 30
per cent of land was not cultivated at all, but statistics did not reflect
it... [ellipsis as published]

[Salimonovych] The process of so-called "adjustment" at the highest level of
administration has become the talk of the town. The president often has to
act as an arbiter in local collisions. Are there any controversies in your
team?

[Avakov] I work here not for the sake of a compromise with politicians, but
for the sake of the result, and there are no controversies within the team.

[Salimonovych] Then why did you reject the services of the leader of the
regional department of [Viktor Yushchenko's] Our Ukraine party, Ivan
Varchenko, as your non-staff adviser?

[Avakov] When a group of advisers is formed at the regional state
administration, it works on problems which cannot be resolved by
administrative staff. For example, it concerns strategic directions and
long-term planning. Concrete conclusions are made on this basis, concrete
decisions are developed, and later on they can be used in public politics.
Consultations of this kind are conducted in a narrow circle of
professionals.

The situation is abnormal when Mr Varchenko, being my adviser, continues
consulting me through the window with a loudspeaker in his hands [i.e
leading rallies]. This is why, with due respect to Mr Varchenko, I simply
restored the status quo. We shall further work in the way where he will
influence me not as an adviser, but as a politician. It seems to be right
and harmonious.

BRIDGEHEAD FOR EASTERN OFFENSIVE -----
Eduard Limonov and Internet forums

[Salimonovych] Mr Avakov, the Ukrainian ruling elite has developed a
tradition of competing for power with highly raised anti-corruption slogans.
Why have you been keeping silent on this issue so long?

[Avakov] Who told you that I had not begun my activities with fighting
corruption? This issue is very important and serious, and it does not need
either advertising or a temporary approach. Corruption in Kharkiv Region
exists on a large scale. For example, we recently put an end to the activity
of a criminal group whose members stole gas condensate on the territory of
some districts: Valky, Kolomak, Krasnohrad and Krasnyy Kut.

The volume of these machinations reached tens, even hundreds of millions of
hryvnyas a year. We also put an end to the "wrong" transactions in forestry,
and our first steps in control over this sphere resulted in 46 per cent
regional industrial production growth. It confirms that one in every two
trees was sold illegally before we arranged things in order.

[Salimonovych] Over the last 10 years, officials at all levels have managed
to soil the word combination "Kharkiv potential" to the extent that it is
now perceived as a good Soviet slogan: it is good in content, but is
meaningless. What does this notion mean to you?

[Avakov] It so happened that Kharkiv had been regarded as the intellectual
capital of Ukraine for a long time. We have the largest number of students,
there are many research institutes. Yes, we have the KTP with its peculiar
proletarian traditions, we have a cultural and intellectual centre with a
bohemian way of life, and we also have a link uniting these two polar worlds
into a single powerful community.

Eduard Limonov, who moved from outskirts of Kharkiv to Sumska Street,
perceived himself through his originality and became a world-known writer. I
recently applied for permission for him to visit his home country in order
to see his sick mother. In my opinion, it was outrageous and wrong when
Kuchma's regime, indulging the Russian totalitarian regime, made him
persona non grata.

Speaking about the Kharkiv potential, I would say the following. There has
never been fanaticism in Kharkiv. Yes, it really develops in itself, it is
full of its ideas, commercial projects, but at the same time it is
impossible to push it to a kind of extreme radicalism. It is just necessary
to give it an opportunity to reveal itself.

[Salimonovych] Do you think the new authorities in the capital understand
it?
[Avakov] I constantly tell leaders from Kiev that Kharkiv is the bridgehead
and the way to the east. It is the place where the maximal result can be
achieved; the residents of Kharkiv are those who can accept new reforms most
adequately. When I assumed the top position and announced this idea during
interviews [with candidates for employment], I looked into their eyes and
asked them: "Do you realize it? Will you support me?" I always got a
positive response.

[Salimonovych] You really surprised residents of Kharkiv once with your
active participation in Internet forums, and surprisingly, you have not
stopped doing it. Is it an attempt to be in fashion or is it the style of
your work?

[Avakov] I felt that this mechanism (by the way, not completely studied yet)
will enable the new authorities to get a certain cross-section and to make a
certain assessment of the events taking place in society, and my colleagues
from the regional state administration agreed with me. In addition,
consolidated formation of views is something of the kind of social morality
which always causes an outcry if we have something wrong.

I try to practically implement the views that have been expressed, and I
also hope that the perception of this kind of communication as a game will
soon be transformed into a certain level of responsibility. It will be
helpful in my work. -30- [The Action Ukraine Report #500]
===============================================================
3. RUSSIA ADDRESSES ISSUE OF ITS NEIGHBORS JOINING NATO

By Steve Gutterman, AP Online
AP, Moscow, Russia, Fri, Jun 10, 2005

MOSCOW - Russia's defense minister said the Kremlin cannot prevent ex-
Soviet republics from joining NATO, but it would view any foreign military
bases in neighboring countries as a threat, a news agency reported Friday.

Defense Minister Sergei Ivanov said in an interview with Profil magazine
that he would not rule out more former Soviet republics following the three
Baltic states and joining NATO in the next seven to 10 years, according to
Interfax, which obtained the text in advance of publication.

"If Georgia or Ukraine decides to join NATO, they will join. We cannot
prevent this, and we probably shouldn't," Ivanov said, according to the
report. He said many countries want to join NATO because "without this
they won't let them into the European Union."

The statement came as an acknowledgment of Russia's waning influence as
other former Soviet republics turn to the West, seeking closer integration
with - and eventual membership in - NATO and the EU.

Russian officials have said that its neighbors are sovereign and free to
form their own foreign policy. But they have watched warily as NATO has
expanded eastward, taking in first former Warsaw Pact members and then
Estonia, Latvia and Lithuania last year.

In Georgia and Ukraine, new Westward-leaning presidents have replaced
longtime leaders with close Russian ties in the past two years, and
Moldova's leadership has recently turned its backed on Russia to seek closer
ties with Europe.

With NATO growing, Ivanov reiterated Russian warnings that foreign base on
its doorstep would be seen as an aggressive move and said there are no
grounds for placing U.S. or NATO bases in Georgia, where Russia recently
agreed to withdraw its troops from two Soviet-era bases by the end of 2008.

"I have said repeatedly: If a serious military base appears in the Baltics,
we will interpret it as a threat to Russia. There is no other way to explain
a base in this region," Interfax quoted Ivanov as saying.

At the same time, he said that the Western alliance has changed since the
Cold War, and that a country joining NATO does not mean that major military
bases will be established on its territory, according to Interfax.

U.S. officials have said Washington has no plans for bases in Georgia, where
it has trained troops. But amid planned shifts in American troops abroad,
Russia fears its longtime military presence in the strategic Caucasus
Mountain nation could be replaced by American forces.

Ivanov said the idea that bases in Georgia could be needed because of its
proximity to the Middle East was "an insufficient argument. There are
already (U.S.) bases in Iraq, Afghanistan, Qatar, Bahrain, Kyrgyzstan,
Uzbekistan and a number of other countries."

Ivanov said that because of links between the Russian and Ukrainian defense
industries, Ukrainian membership in NATO would force Russia to "invest quite
big money to avoid any kind of dependence on supplies of products and parts
from Ukraine," the report said. -30-
===============================================================
4. UKRAINE TO PRESS AHEAD IN DRIVE TO JOIN EU

By Stefan Wagstyl, East Europe Editor
Financial Times, United Kingdom, Fri, June 10 2005

Ukraine will persist in its plans to prepare for membership of the European
Union, in spite of growing public concern in western Europe about future
enlargements.

Oleksander Zinchenko, state secretary and President Viktor Yushchenko's
chief of staff, yesterday insisted Kiev would not change its policies in
response to the recent No votes in the French and Dutch constitutional
treaty referendums. "We have decided it is better to remain consistent and
we have not changed our working plan," said Mr Zinchenko.

There are serious concerns in Kiev that the EU might halt enlargement
because the referendum results reflected widespread hostility to the union's
expansion. Ukrainian officials have recognised that their country could not
join the union for many years but are worried that the latest developments
could delay even discussion about membership.

Mr Zinchenko put a brave face on these concerns, saying the authorities
would press ahead with reforms designed to transform Ukraine into a country
with modern EU standards ready to take advantage of future opportunities for
integration with the union. "So when the time comes when EU integration
issue can be raised, Ukraine will be a different country."

"The west will see what we will do over the next three years," he said. "We
will not be beggars at the European door . . . we will develop our road map
so Europe will see a decent country and will welcome us in."

Mr Zinchenko, one of the leaders of the Orange Revolution, the popular
movement that brought Mr Yushchenko to power, was speaking amid
considerable uncertainty about the EU's enlargement policy.

Romania and Bulgaria have been promised membership in 2007, or 2008
at the latest, although their entry requires ratification by the 25 member
states.

Croatia has been told it can start accession talks once it satisfies
Brussels it is co-operating fully with the International War Crimes
Tribunal. Turkey hopes to get the go-ahead for entry talks later this year.

Ukraine is in a weaker position because it has received no official
assurances about EU entry. But Mr Zinchenko said Kiev would stick with
its previous plan to apply for associate membership in 2008.

He said even if the EU turned its back on Ukraine, the political changes
involved in the Orange Revolution and its aftermath were irreversible. Kiev
would never again look to Moscow for direction, he said.

Mr Zinchenko said the government had yet to make a decision on a key
economic issue - the review of state assets privatised by the administration
of former president Leonid Kuchma, which were often sold in untransparent
ways to government allies.

But Mr Zinchenko played down the possible extent of the review. While
government agencies had proposed 29 companies for investigation, the
cabinet could choose fewer - 16 or 20. -30-
===============================================================
5. UKRAINE MACROECONOMIC SITUATION - MAY 2005

MONTHLY REPORT: by Iryna Piontkivska, Edilberto L. Segura
SigmaBleyzer Private Equity Investment Group
Kyiv, Ukraine, June, 2005

SUMMARY -----
1. In the first quarter of 2005, the rate of economic growth slowed to
5.4% yoy.

2. Fiscal performance has been successful so far. The consolidated
budget reported a 3.8% of GDP surplus in January-March.

3. The Ministry of Finance sold UAH 2.2 billion worth of T-bills in
January- March, reducing its borrowing costs from over 10% to an
average of 5%.

4. The National Bank of Ukraine allowed for a 4% nominal appreciation
of the hryvnia, making its forex purchases less inflationary. The official
hryvnia rate with down to 5.05 UAH/USD.

5. Consumer inflation is on the rise, reaching 14.7% in April due to
increasing food and gasoline prices.

6. The NBU cancelled regulation #482, which called for a complicated
procedure of investing in and divesting from Ukraine by non-residents.

NOTE: To read the entire SigmaBleyzer May 2005 Ukraine Macroeconomic
Situation report including five charts in color click on the following link:
http://sigmableyzer.com/files/Ukraine_Ec_Situation_05_05_2.pdf
===============================================================
6. EUROPE AND RUSSIA ON POST-SOVIET TERRITORY:
BEFORE AND AFTER EU CONSTITUTION REFERENDUMS

By Alexei Makarkin, Deputy Director General at the
Center for Political Technologies, for RIA Novosti
RIA Novosti, Moscow, Russia, Tuesday, June 7, 2005

The failure of the European Constitution during referendums in France and
the Netherlands put in question the future of the European integration.

Such development of events might have serious consequences for the
prospects of the accession of new members to the EU. If before the
referendums it was expected that Ukraine had good chances to integrate into
united Europe in the next 10-15 years, now such a possibility looks rather
far-fetching. Georgia's chances are even smaller because it failed until
now to ensure its own territorial integrity and without it the country
cannot join either the EU or NATO. Moldova faces the same problem.

At present, the leadership of several CIS countries consists of politicians
who either came to power on the wave of "color" revolutions (Ukraine,
Georgia), or follow their logic (Moldova). It is hard to believe that they
would abandon their plans to join the EU, even though this prospect becomes
more distant. For the current leaders it would not only mean the revision
of priorities (which is possible in theory, if we recall the Moldavian
Communists who started as supporters of integration with Russia, but later
turned into staunch supporters of the European integration), but also "the
loss of face."

Besides, we cannot play down the attractiveness of Europe. After all, the
negative effect caused by the failure of the Constitution might disappear
in the near future and be replaced with a new wave of European optimism.

In addition, the EU might develop a system of palliatives, which would allow
the candidates to keep their hopes for integration without being full
members of the "elite club," for example by introducing the institute of
associate EU members. We should not forget that not only the European
countries, but also the U.S. would like to patronize these countries. In
that respect, the U.S. influence did not decrease (or maybe even increased)
after the referendums in France and the Netherlands.

The difference between the situation in the CIS countries and in new EU
member-countries is that the elites in Ukraine, Georgia and Moldova are not
completely EU-oriented. In Hungary, for example, all major political
parties that constantly replaced each other at the reigns of power -- the
socialists, the liberals, the conservatives - were unanimous in their
understanding of the priority of the European integration. They disagreed
only on the dates and the methods. As a result, the change of ruling
coalitions did not affect seriously the European choice of the country.

The situation in Ukraine is different. Last year's elections clearly showed
the elite and the electorate are split on pro-Russian and pro-Western.
Besides, the Ukrainian business supports the idea of the Common Economic
Space on post-Soviet territory and is extremely cautious about the European
project because of its hypothetical nature and the problems related to the
sales of Ukrainian products on European markets.

In Moldova, pro-Russian forces lost during the parliamentary elections only
because they chose the wrong strategy - they split in two groups. In
Georgia, Mikhail Saakashvili's clearly pro-Western orientation goes against
traditional orientation of this country on Russia. Overall, despite the
impressive effect of "color" revolutions, many problems still remain in
these countries.

In this situation, Russia has a window of opportunity. Contrary to the EU
with its antagonisms between member-countries, Russia exercises sole
political will. Russia offers its neighbors concrete and lucrative economic
projects rather than hopes for integration in the distant future.

Meanwhile, Russia demands much less in return from its neighbors. On the
contrary, each step of the European integration, even the most preliminary,
is accompanied by a massive number of economic and political conditions.

Therefore, after the wave of "color" revolutions, the pendulum might sway
in the opposite direction. Laborites in Georgia, progressive Socialists in
Ukraine, and the Rodina movement in Moldova, those who strongly and
steadily support integration with Russia, might get their chance. -30-
===============================================================
7. AMERICA HAS BIG STAKE IN SUPPORTING DEMOCRACY IN
FORMER SOVIET REPUBLIC OF GEORGIA
Saakashvili has largely used up the political capital he acquired

By James V. Wertsch, Director of International and
Area Studies, Washington University in St. Louis
University Communications, Washington University in St. Louis
St. Louis, Missouri, Wednesday, June 8, 2002

As Americans celebrate independence this July 4, they may wish to
consider the plight of another democracy - one that is young and struggling
and whose continued success could have a dramatic impact on the world
economy, the price of gasoline and other critical U.S. interests, suggests
James V. Wertsch, director of International and Area Studies at Washington
University in St. Louis.

Given America's obsession with war and terrorism in the Middle East, it is
countries such as Iraq, Syria and Afghanistan that may come first to mind.

However, by focusing on this troubled region, the United States is missing
an opportunity to partner with a nation where Americans are actually
welcomed with open arms; one where the fate of a struggling democratic
system could have huge ripple effects around the globe. That country is the
former Soviet Republic of Georgia, says Wertsch, the Marshall S. Snow
Professor in Arts & Sciences at Washington University.

Why is Georgia so important to the U.S.?

Part of the answer, Wertsch contends, lies in the pipelines running across
Georgia's territory that carry oil and gas to the West. Georgia provides a
new route to the oil riches of the Caspian. This is a route that avoids
Russia and Iran at America's insistence, as well as Armenia, at the
insistence of Azerbaijan, which is the source of the oil. In particular,
Georgia is the transit country for the new Baku-Tbilisi-Ceyhan Pipeline
running from Azerbaijan to the Mediterranean coast of Turkey. This
pipeline, which is just beginning to pump oil, will eventually carry a
million barrels of crude a day to the West.

Dependence on foreign oil is an issue of obvious importance to most
Americans and it should be especially compelling for those anguishing over
the cost of fueling up for traditional Independence Day driving excursions.
However, as Americans celebrate their own love of freedom and democracy,
they should realize, says Wertsch, that it is these same institutions that
underlie the real strategic value of Georgia to the United States.

Wertsch points to the tumultuous welcome that thousands of Georgians gave
President George W. Bush when he visited in May to support his assertion.

The visit's purpose was to cast a spotlight on democratic developments
following the "Rose Revolution" of November 2003, the nonviolent popular
uprising that overturned the corrupt Georgian government of post-Soviet
president Eduard Shevardnadze. Even the subsequent discovery of a
grenade in the area where Bush addressed a huge crowd in Tbilisi did little
to dampen positive impressions on both sides, he says.

Wertsch says the United States should redouble its efforts to support and
strengthen the emerging democratic movement in Georgia because what
happens there may be a bellwether for the fate of democracy in nations
across much of Eastern Europe and Central Asia.

"The ramifications of the Rose Revolution extend well beyond Georgia's
borders," says Wertsch, the co-editor of the journal Caucasus Context and
the 2005 volume, Enough! The Rose Revolution in the Republic of Georgia.

"The attention it has garnered has made democratic upheaval thinkable in
places like Ukraine, a country where Georgian flags sprouted in the massive
rallies of the "Orange Revolution" of last winter. And it is commonly
brought up in discussions of Kyrgyzstan's "Tulip Revolution" of this spring
and even in talk about potential upheaval in Russia."

During his visit Bush was effusive in his praise of Mikheil Saakashvili,
the youthful president of Georgia who led the Rose Revolution. This praise
is warranted, suggests Wertsch, but the mark of true friendship is the
ability to speak frankly about problems others may wish to ignore, and
today Georgia definitely is in need of a friend.

"The afterglow of the Rose Revolution has now faded," Wertsch notes.
"Corruption remains a major problem, disruptions in electricity and water
services have re-appeared, and Georgians are becoming increasingly
frustrated with the lack of jobs and economic development. Thanks to weak
opposition, Saakashvili's presidency is not in danger at this point, but
his approval ratings have gone into steep decline.

In short, he has largely used up the political capital he acquired from the
Rose Revolution, and the country stands at a juncture where a new style
of leadership is required."

"What Georgia needs now is solid, day-to-day leadership, but Saakashvili
has continued to rely on populist gestures that all too often appear, at
best, impulsive," says Wertsch.

"There are all too many parties who would love to see the Georgian
experiment in democracy and civil society fail. America needs to see it
succeed," says Wertsch. " As true friends of Georgia, we need to stress
that the days of populist revolution are over, and the time for steady,
solid leadership and governance has arrived.

In the end, Georgians are the only ones who can provide such leadership.
The U.S. should stand ready to help in any way possible, starting with
ongoing, frank assessments of the problems facing the country today and
the steps required of a responsible leadership to address them."

REGIONAL OUTLOOK -----
Georgia's regional neighbor Uzbekistan has been in the news as the result
of a May 13 anti-government protest that was put down by Uzbek troops in
what some describe as a massacre of citizens fed up with the nation's
repressive post-Soviet government.

Wertsch suggests that the volatile situation in Uzbekistan is noteworthy in
part because it shows just how that nation is following a much different
path than Georgia.

"To be sure, some folks in Uzbekistan looked to Georgia as a model for
what they wanted to create there," says Wertsch "I have discussed this with
Uzbeks for over a year. However, what happened there is quite different for
some pretty identifiable reasons, and the result is that no democracy has
emerged in Uzbekistan and more trouble is inevitable in the future."

"Ukraine is the best follow-on case, and Kyrgyzstan and especially
Uzbekistan are very different. The Russians have a vested interest in
portraying all of these "color revolutions" as the same ­ illegal putsches
that are bound to lead to instability and failure, but there is some pretty
critical discussion going on in Moscow about how this might be the wrong
way to look at things." -30- [The Action Ukraine Report #500]
----------------------------------------------------------------------------------------------------------
LINK: http://news-info.wustl.edu/news/page/normal/5362.html
----------------------------------------------------------------------------------------------------------
FOOTNOTE: Many of the comments and much of the analysis in the
article above could also be applied to Ukraine. [Editor]
===============================================================
8. RUSSIAN GOVERNMENT SETS SIGHTS ON 'SUBVERSION'
Demands by the security service chief that NGOs must be curbed are
seen as an official reaction to recent popular revolts around Russia's
periphery - Ukraine, Kyrgyzstan, and Uzbekistan.

By Fred Weir, Correspondent of The Christian Science Monitor
The Christian Science Monitor, Boston, MA, Wednesday, Jun 1, 2005

MOSCOW - A creeping crackdown is underway in Russia as the Kremlin has
accused nongovernmental organizations (NGOs) of spying, moved to restrict
political parties, and is considering measures that would weaken its print
media.

Earlier this month Nikolai Patrushev, head of the state's FSB security
service, charged that NGOs - including the US Peace Corps, the British
Merlin medical relief foundation, and the Arab Red Crescent Society - were
vehicles for "conducting intelligence operations under the guise of charity"
activities. All the named groups issued angry denials.

Tough talk of limiting Russia's foreign-funded civil society, coupled with a
new election law to limit the political field, does not represent a sudden
shift, but rather a trend begun under President Vladimir Putin to tighten
control over the country's press and public politics, experts say.

"We are returning to the Soviet system of governing, when all was officially
under control, although in practice nothing was actually under control,"
says Dmitri Oreshkin, an expert with Merkator, an independent think tank.
"The state being constructed through this process will be unitarian [have a
single power center] and will, to a great extent, be an authoritarian
state."

Individual NGOs have frequently been accused of spying by the FSB in the
past, but Mr. Patrushev went further by alleging that even many think tanks
were using legitimate educational exchanges and civil society projects to
work for "regime change."

Demands by the security service chief that NGOs must be curbed are seen
as an official reaction to recent popular revolts around Russia's
periphery - Ukraine, Kyrgyzstan, and Uzbekistan.

"To accuse NGOs of subversion is something new, and it is a sign the FSB
is returning to the role of the former KGB," says Andrei Soldatov, editor of
Agentura.ru, a website devoted to studying the intelligence services. "The
FSB has recently reconstituted the KGB's 'anti-subversion' department. It is
actively returning to old methods of surveillance over the whole society."

Many NGOs say the atmosphere is becoming chillier by the day and worry
that a new law governing their activities, currently being drafted, could
make life impossible. "International foundations are being actively pushed
out of Russia," says Alexei Simonov, director of the Glasnost Foundation,
an independent media watchdog. "Financing is becoming much harder; we
already feel it."

Says Alexander Shuvalov, deputy director of Greenpeace-Russia: "We are
being squeezed out of the mass media, and government agencies are
actively thwarting our attempts to work. This is a continuation of policies
we've felt for some years."

The new election law, passed in first reading by the Duma a week ago, has
been planned since the terrorist attack on a school in Beslan last
September. Experts say it will easily pass the needed two more readings in
September. The law would prohibit coalitions of small parties, raising the
threshold for entry into the Duma from 5 to 7 percent, making it easier for
officials to disqualify candidates and ban independent observers from
polling stations.

"The essence of these changes is to eliminate checks and balances and to
distance citizens from real participation in the political process," says
Nikolai Petrov, an expert with the Carnegie Center in Moscow.

Some experts suggest the Kremlin's goal is to ensure that only one or two
big, officially approved parties will remain. "This is an attempt to create
a one-party state," says Yury Levada, head of the Levada Center, an
independent polling agency. "We are being pushed into the past, back to
the state we previously inhabited."

Gleb Pavlovsky, who advises the Kremlin on political strategy, said this
week that Russia's existing opposition parties are "useless" and that the
Kremlin's goal will be to build a better opposition before the next Duma
elections, slated for December 2007.

"Paradoxical as it may sound, it is a task for Putin's allies, not his
opponents, to set up a functioning opposition," Mr. Pavlovsky said. He
warned that existing Russian opposition parties may be working with outside
forces to engineer a Ukrainian-style revolution against Putin. "That would
rob Russian rule of legitimacy, while the decision-making center would shift
to another force - one outside Russia," he said. "No one wants an opposition
like that."

Experts say the Kremlin recently added several tough amendments to the
draft electoral law to control the way media outlets cover elections.

According to the version passed by the Duma, journalists and editors will be
held legally accountable for any false or unverified information, even if
they have reprinted it from another source, such as a wire service. "This is
a very dangerous law," says Andrei Kolesnikov, deputy editor of Izvestia,
one of Russia's largest daily newspapers. "It will enable bureaucrats to
take control over the media, especially newspapers."

During Putin's first term the Kremlin squeezed out independent TV networks,
but largely left print alone. "Now the authorities are showing an interest
in newspapers. The trend is to over-regulate everything; and it's a very bad
trend," says Mr. Kolesnikov. -30- [The Action Ukraine Report #500]
===============================================================
9. UKRAINE: HOME, SWEET HOME
Crimean Tatars Want Restored Autonomy, Not Statehood

By Mykyta Kasyanenko, Symferopol
The Day Weekly Digest in English, #17
Kyiv, Ukraine, Tuesday, May 24, 2005

Sixty-one years ago the Crimean Tatars were deported from the peninsula. The
same destiny awaited the Crimean Armenians, Bulgarians, and Greeks on June
24, 1944, whereas the local Germans had been exiled earlier, in August 1941.

This year the Crimea has seen commemorative rallies and other events on an
unprecedented scale. The heads of the Verkhovna Rada and the Council of
Ministers, representatives of the president, the Symferopol City Council,
and civic organizations laid flowers beneath the commemorative plaques put
up in Symferopol in the places where the deportees boarded trains in 1944.
The Ukrainian Drama Theater hosted a public mourning ceremony featuring
speeches by the Crimean parliament Speaker Borys Deich, government head
Anatoliy Matviyenko, and MP Refat Chubarov.

Commemorative meetings, exhibitions, ceremonies, and marches were held last
Wednesday in all the Crimean cities and villages where the Tatars, including
repatriates, reside: Yevpatoriya, Feodosiya, Sudak, Kerch, Sevastopol,
Bakhchisarai, et al. A monument to the victims of the 1944 deportation was
unveiled in the village of Kolchuhino, Symferopol district. Created by the
Crimea-based sculptor Ilmi Ametov, it is a 5m-high stele of white compressed
limestone crowned with the tamga, the national emblem of the Crimean Tatars.

The stele bears a carved inscription in the Crimean Tatar language: "It is
good to return home from a strange land, it is good to burn for the people."
The money for this monument was donated by the residents of the villages of
Kolchuhino, Prudove, and Rivnopilne, all governed by the Kolchuhino village
council.

Early on the morning of May 18, five columns of the Crimean Tatars (not
three as in previous years) set out for Symferopol's central square. They
held rallies in front of the memorials in Salhirka Park next to Symferopol's
railway station. Between 15,000 and 20,000 people gathered at the city's
central square by 2:00 p.m. The Crimean Mufti Emirali Ablayev conducted the
duwa, a Muslim remembrance prayer for the deportation victims. The mourning
rally was addressed by Crimean officials, the head of Istanbul's Crimean
Tatar community, representatives of foreign delegations, politicians, and
public figures. A resolution was passed, demanding the restoration of the
Crimean Tatars' political, economic, national, and property rights.

President Viktor Yushchenko of Ukraine said in Bakhchisarai that he was a
"partner" of the Crimean Tatars but urged them to drop the idea of
ethnic-based statehood, because this would require making amendments to the
1991 Declaration on the Sovereignty of the Crimean Tatar People. Crimean
Tatar leader Mustafa Dzhemilev said in reply, "Our goal is not to create a
separate Crimean Tatar state. Our aim is to restore Crimean Tatar national
autonomy as part of Ukraine." Refat Chubarov reminded the president that,
while adopting the aforesaid declaration, the kurultai (people's council -
Ed.) was guided by international law and UN conventions.

Hence, the Crimean Tatars see no reason why this document should be
amended. Mr. Dzhemilev also noted that he does not mind that the Crimean
administrative bodies comprise representatives of all ethnic minorities,
"but the Crimean Tatars are the indigenous people and the masters of this
land, not an ethnic minority that by force of historical reasons is now
numerically small in the Crimea. All our demands, including staff placement,
are based on this factor. The Crimean Tatars should be represented in local
government bodies proportionally to their percentage in the Crimean
population."

The Crimean Tatar leader asked President Yushchenko to amend the provision
"On the Council of Crimean Tatar Representatives under the President of
Ukraine," which unambiguously declares that the role of this council is to
be played by the Mejlis of the Crimean Tatar people. Mr. Dzhemilev urged the
president to help restore the original names of Crimean Tatar cities and
villages, submit to the Verkhovna Rada of Ukraine two laws, "On the Status
of the Crimean Tatar People" and "On Restoring the Rights of Those Deported
on Ethnic Grounds," and introduce amendments to the Constitution of the
Crimean Autonomous Republic about granting equality to the Crimean Tatar
language, on par with the official one, throughout the peninsula's
territory.

It was also suggested that the Ukrainian parliament pass an amendment to the
law "On Elections to the Verkhovna Rada of the Crimean Autonomous Republic,"
which would guarantee Crimean Tatar representation in the autonomy's
parliament and thus enable them to have a considerable impact on the
resolution of Tatar-related problems. The participants also raised such
questions as recognition in Ukraine of the degrees awarded by Turkish
universities to Crimean Tatar students, unbiased hearings of court cases
involving Crimean Tatars, and an allotment of land in Kyiv to build a
Crimean Tatar cultural center.

At the Ukrainian president's demand, the National Security and Defense
Council, the Crimean parliament and government have declared a moratorium
on the distribution of land until the latter has been fully inventoried. The
Crimean Tatars have repeatedly maintained that they are tired of waiting for
the resolution of pressing problems, including land, in the 15 years since
they were repatriated. In Mr. Chubarov's view, the authorities have been
unjustifiably denying the Crimean Tatars land plots on the Crimea's southern
coast. According to NKVD reports cited at the commemorative rally in
Symferopol, 10,322 Crimean Tatars were deported from Yalta and 15,107
from Alushta on May 18, 1944.

Whereas before WWII the Crimean Tatars accounted for 70- 80% of the southern
coastal population, the number of Tatars ranges from 0.5% to 2-3% in many
cities and villages. Crimean premier Matviyenko said that "the moratorium in
no way impedes the resolution of the Crimean Tatars' and other repatriates'
land problem. We want to do all this transparently. And when we do this, we
will no longer have anarchy in the land question or conflict. Everything
must be done transparently and according to the law."

The May 1944 nightmare affected the destiny of entire nations over several
generations. Today Ukraine is doing its best to restore justice and provide
assistance to the victims and their descendants. The Program for the
Resettlement and Socio-Cultural Development of the Deported Crimean Citizens
for 2005 has received UAH 61.3 million from the national budget and UAH 21.3
million from the Crimean budget, including, in the latter case, UAH 16.1
million for capital construction and 5.2 million for socio-cultural needs.

"We are grateful to Ukraine for allocating by no means surplus funds to help
Tatar and other deportees improve their amenities," MP Mustafa Dzhemilev
says, "but it must be admitted that not all Crimean Tatar families have
managed to return and settle in their ancestral homeland during the 15 years
of repatriation."

In 1989-2004, 255,000 repatriates returned to the Crimea, including more
than 250,000 Tatars and about 4,000 deported Armenians, Bulgarians, Greeks,
and Germans. Since the repatriation began, Ukraine has earmarked over 800
million hryvnias for the repatriates' needs, but the final solution of the
problem will require an estimated 2 billion dollars or so. -30-
---------------------------------------------------------------------------------------------------------
LINK: http://www.day.kiev.ua/137484
===============================================================
10. MOLDOVAN PRESIDENT SAYS UKRAINE'S DNIESTER PLAN
SHOWS YUSHCHENKO'S "PERSONAL COURAGE"

Infotag news agency, Chisinau, Moldova, in Russian, 10 Jun 05
BBC Monitoring Service, UK, in English, Fri, Jun 10, 2005

CHISINAU - President Vladimir Voronin told a special parliamentary session
on Friday [10 June] that the [Moldovan breakaway] Dniester settlement is the
most important issue of Moldova's statehood.

The president said that discussion of the Dniester settlement in the
Moldovan parliament "has the most serious basis - Ukraine's initiative".
Voronin said that parliamentary factions have always been critical in
evaluating proposals and drafts to settle the Dniester problem, which are
regularly put forward in Moldova and abroad.

"Everyone thinks of themselves as an unsurpassed expert in this area. We
have even become, to some extend, snobs in this field, often failing to
notice important and very sincere proposals, which sometimes should be
accepted and developed," Voronin said.

He added that the impression sometimes is formed that Moldova's political
class needs no settlement at all, that it finds it beneficial to live in a
divided country, and that it finds it beneficial to live with an open
border, the Dniester's shadow economy and the foreign [Russian] military
presence.

Voronin evaluated Ukraine's Dniester settlement proposals as "Ukrainian
President Viktor Yushchenko's unquestionable personal courage".
Voronin described the Ukrainian plan as the most interesting and the most
promising document which has ever appeared at the negotiating table.

"The plan has bypassed, in a very delicate and intelligent way, the
controversial problems which always hamper the settlement process - foreign
troop pullout from Moldova's territory, division of powers between the
central government and the Dniester region, forms of ensuring stability in
the security zone, and the establishment of lawful monitoring at the
Dniester section of the Moldovan-Ukrainian border," he said.
The president was positive about the fact that the Ukrainian plan firmly
establishes Moldova's future as an integral state in territorial and
political terms.

"Ukraine has placed emphasis on the most important settlement mechanism,
which is being offered to Moldova for the first time as a means of reaching
territorial integrity. This is democratization of the Dniester region. If
the entire plan contained this sole thesis, then Viktor Yushchenko's
proposal should be warmly welcomed even it that case," Voronin said, as he
thinks that the essence of the Dniester problem is that the population of
the region has no chance of gaining their civil rights.

The Ukrainian plan provides for some most important and fundamental aspects
of democratization of the Dniester region, Voronin said. At first the
Moldovan parliament approves a law on the main principles of the Dniester
region's status.

Voronin said: "This document is at the same time a general consolidated
position of the Moldovan political class on how the Dniester region is seen
within Moldova and also a legal procedure for the [December 2005] general
elections in the Dniester region.

Then an international electoral commission organizes and holds elections to
the Dniester region's supreme council [parliament] on the basis of the
OSCE's mandate and in accordance with a law on the main principles of the
Dniester region's status.

If the elections prove democratic, the final aspects of the settlement will
include involvement of democratically elected supreme council MPs in
finetuning the law on the Dniester region's status, whose final version is
approved by both the parliament of the entire country and the Dniester
region's representative body."

Voronin said he is confident that this approach has a future. He said that
this is the most optimistic scenario of a peaceful, democratic and final
settlement, which will make it possible to take Moldova's reintegration to
its final stage very soon.

Voronin asked the MPs to back his draft declaration of the Moldovan
parliament "On the Ukrainian Dniester settlement initiative".
Voronin said that Moldova and Ukraine need assistance of European
institutions and an expert interpretation of conditions for democratization
of the Dniester region.

"Because the plan envisages that precisely European institutions, in
particular, the OSCE and the Council of Europe, will have to do the main
part of the job in organizing elections in the Dniester region," the
president said.

He said that the process of demilitarization of Moldova's Dniester region
should also become the subject of a separate appeal of the Moldovan
parliament to the OSCE, the European Union, the Council of Europe, and to
the governments of the USA, Ukraine, Russia and Romania.

"Only it this multifaceted format will we be able to solve the task we are
facing. I have already publicly proposed the general outline of
demilitarization in the Dniester region at the NATO summit in Brussels, and
also at a meeting with B Secretary-General Jaap de Hoop Scheffer," Voronin
said.

Speaking on the presence of Russian troops in Moldova, the president said
that the Moldovan people does not see any political or geostrategic
foundations for the presence of Russian troops on Moldovan territory.

"We think that armed people in Moldova's security zone should be replaced by
observers on the basis of an international mandate. I am confident that the
Dniester problem should not be militarized. Please agree that there cannot
be any true reintegration or any strengthening of mutual measures of trust
in the region, with the mediation of armed people. We need the OSCE's active
support for this position," Voronin said.

Speaking from the parliamentary rostrum, Voronin thanked Ukrainian President
Viktor Yushchenko for the important political proposal. He expressed
confidence that Ukraine's initiative will open up a promising and fruitful
stage in bilateral relations between Chisinau and Kiev. -30-
===============================================================
11. BRITISH UNIVERSITY OPENS MBA PROGRAMME IN KIEV

UNIAN news agency, Kiev, in Ukrainian 1458 gmt 8 Jun 05
BBC Monitoring Service, UK, in English, Thu, Jun 09, 2005

KIEV - The National Academy of Management and Britain's University of
Central Lancashire have developed a joint MBA course, places for which will
be open from 1 September this year. The University of Central Lancashire's
Pro Vice Chancellor for international links, Angela Murphy, announced this
at a news conference at UNIAN today.

UNIAN's correspondent reports that she said that the international MBA
programme is based at the university's economics faculty, which counts
4,000 students. Murphy said the economic faculty is well-known for its
international links, and currently offers 32 masters programmes.

Murphy said the MBA programme is an on-site and distance masters
programme for people wishing to gain a highly prestigious qualification in
the field of management.

The programme was developed by the National Academy of Management
and the University of Central Lancashire and is aimed at senior and middle
managers with higher education and work experience and who want to
increase their training in the field of management, as well as to acquire
practical experience of study and work in Great Britain. Murphy said the
on-site course consists of a three-semester programme.

Students who complete the programme will gain an international
qualification, which will open new job opportunities throughout the world,
she said. She said it costs from 10,000 pounds to 20,000 pounds to study in
Great Britain, but since part of the course is held at the National Academy
of Management, it will be significantly cheaper for Ukrainians.

Murphy said the programme has been going for over 20 years and produces
80-100 graduates a year.

The Chancellor of the University of Central Lancashire, Malcolm McVicar,
said by working with the National Academy of Management, his university
could provide high-quality education on the Ukrainian market, which gives
each student a real competitive advantage. "We see great prospects for
developing our work in Ukraine," McVicar said, adding "Quality, content and
partnership are the main driving forces of our work together."

The Chancellor of the National Academy of Management, Serhiy Yerokhin,
said the establishment of the programme demanded suitable accreditation
both in Ukraine and in Great Britain.. "This is an important event for all
of Ukrainian higher education," he said. -30-
===============================================================
12. UKRAINE: LAVRA TO BE STRUCK OFF UNESCO LIST?
A massive cave-in in the monastery catacombs

By Natalia Melnyk The Day
The Day Weekly Digest in English, #19
Kyiv, Ukraine, Tuesday, 7 June 2005

The opening session of the revamped National UNESCO Commission revealed
that the precarious condition of the Kyivan Cave Monastery (Pecherska Lavra)
may force UNESCO to remove this architectural monument from its World
Heritage List. According to Serhiy Krolevets, director- general of the
Kyivan Cave Monastery, in the past few years the Lavra's structures are
deteriorating faster than they are being restored.

The worst possible thing happened in late May: for the first time in the
Lavra's history there was a large cave-in in the Near Caves, when many cubic
meters of soil with human bones and remains of the cultural stratum filled
up some passages.

If the Lavra question is raised at the top executive level of UNESCO, St.
Sophia Cathedral will be automatically removed from the list because the two
monuments are recorded under the same number, leaving only the historical
center of Lviv, Ukraine's third item on the UNESCO list.

International organizations already have questions about Lviv: for example,
a new building of a respected Ukrainian bank, widely considered to be an
eyesore, has cropped up among the old architecture, right behind the Adam
Mickiewicz monument.

Architects only have one answer to the question "Why?" Modern construction
is brazenly overtaking Kyiv's historic center. Let's not forget the
scandalous construction of a twenty-story building on Hrushevsky Street. The
point is not that it is located on the edge of the Kyiv ridge, which many
experts think is "movable" and can "drift" at any moment: they say it is
dangerous to place such a heavy weight there.

The fact that the client lost no time in putting up the framework before the
government's experts had even decided on the number of stories in this
building (revealed by the city's chief architect) is not the point here.
Once this structure was built, the Lavra ceased to dominate the landscape.
The real point is that this is being done within the limits of a legally
protected conservation area.

A project was considered to erect a residential high-rise on Lavrska Lane
abutting the Lavra walls. Housing construction is in full swing in
Staronavodnytska Gulley. There is also a project slated for Petrovska Alley,
which, according to the architects, would form a "harmonious" tandem with
the building on Hrushevsky St.

Many hoped that the implementation of Detailed Planning Reports (DPR) for
each of Kyiv's districts would help curb the appetites of investors (as well
as some architects) and build up this part of the old city (if a decision is
made to this effect) in a way that best suits the capital.

Experts used to say that DPRs would be a top priority after the
implementation of the General City Development Plan: they detail what,
where, and how to build, including even the number of stories. But according
to Mykola Parkhomenko, first deputy chairman of the All-Ukrainian
Association for the Protection of Monuments, there are already some
alarming signals.

For example, the DPR for Pechersk has plans to develop the Dnipro
Embankment. Naturally, not all projects are alike. Still, many believe that
what we are being offered will make us forget about the riverside panorama
altogether.

Construction around the Lavra is not the only problem. Another is the
unresolved status of the preserve. Officially, the Lavra is part of the
Ministry for Culture and Tourism's domain. However, its director says that
144 structures on its territory are municipal property. Decisions on the use
of the Lavra's premises are made by both authorities, which are often at
odds with each other.

The status of a national monument must place certain restrictions on all
users. Unfortunately, this is not the case. Mr. Krolevets gives an
illustrative example: the users of many premises rented by the Ministry of
Culture have nothing to do with the Lavra itself, for instance, dance
classes or a dormitory for the ministry's female employees.

The director has another complaint. "I am aware that strict control over the
funds earmarked for architectural monuments results from the fear that they
can be misused," he says. However, the current procedure for transferring
funds via the State Treasury does not allow for optimal decisions. In other
words, if there is a cave-in somewhere, it is possible to invite
subcontractors but it is impossible to pay them for the work done or to
purchase the tools they need. The reason is that if you want to make a
payment, you have to introduce changes to the approved annual plan.

The preserve requested 5 million hryvnias to offset capital goods costs but
received only 80,000. It was also denied 2.5 million hryvnias for current
repairs and only given 900,000 to settle its old debts. Depreciation
deduction standards also govern ordinary structures. "What about
architectural monuments? Apart from being of venerable age, they are
now facing the problem of having new buildings in the vicinity," said the
director, returning to the first topic.

The Lavra preserve has now applied for money from the reserve fund. But
in this case, too, there is a special procedure. "There will be no quick
reaction," Mr. Krolovets says, "but what are we supposed to do now?"

INCIDENTALLY -----
The Kyiv authorities cannot financially support the Lavra because it is
under the jurisdiction of the Ministry for Culture and Tourism of Ukraine,
Kyiv's mayor Oleksandr Omelchenko said. "The Budget Code forbids
financing from a municipal budget even if there is such an opportunity," he
told journalists, commenting on the report about the collapse in the Lavra's
Near Caves.

The mayor recalled that "the museum and the preserve, with all its
valuables, were withdrawn from Kyiv's municipal ownership and transferred
to the Ministry for Culture and Arts" 18 months ago by a cabinet resolution.

This is why the ministry is supposed to allocate funds for maintaining the
Kyivan Cave Monastery, he noted. "The city is not in a position to carry out
one-time work in the event of an accident: the Budget Code forbids funding
it from the municipal budget," he emphasized. -30-
===============================================================
13. VILKOVO, UKRAINE: VENICE ON THE DANUBE
Save the "paradise of reeds and fish"

Traveler's Notes: by Dmytro Antonhyuk
Kyiv Weekly, Issue #22 (162)
Kyiv, Ukraine, Friday, Jun 10-17, 2005

A lot of places in Ukraine have been compared to Europe in terms of cultural
and architectural heritage. Indeed, Ukraine is proud of its picturesque
"Swiss Podillya", "Babel of Halychyna" (Lviv), "Paris of Bukovyna"
(Chernivtsi) and even "Venice on the Danube".

The latter is the small town of Vilkovo, hidden in the endless flooded areas
of the Danube River, where canals serve as streets with boats being the only
means of transportation. In fact, the local residents even catch fish here
right from the windows of their homes

Vilkovo is often referred to as the "Venice on the Danube" or a "paradise of
reeds" and is there is probably no other place like it in Ukraine. The fact
is that Vilkovo is a town made of sugar cane and silt built up through the
titanic efforts of its residents. People chose a place on the Danube shoals,
dug out silt from the water and piled it up to build a house with a garden.

Meanwhile, deep canals formed in the place of the silt and became the main
transportation routes of Vilkovo. Every year the locals dig out silt from
under the water and use it as the main construction material, soil and
fertilizer to protect their households from the spring floods of the Danube.

The town's residents have many things to cherish and be proud of. For
example, strawberries grown in Vilkovo are unbelievably large and are
considered the sweetest strawberries in the entire south of Ukraine.

Vilkovo residents are mainly fishers or salesmen. Almost every member of a
family has a boat, since one cannot get around town without it. The locals
joke that only women travel in rowboats, while men go by motorboat. Indeed,
they need motorboats to make their living and feed their families from
catching fish.

If you happen to meet a drunken person in "Venice on the Danube", you will
notice that he is staggering back and forth instead of swaying from one side
to another, which is a habit developed over the years. Indeed, one careless
sway to one side and a person can end up falling off a bridge over the
canals or from the wooden paths along the banks of the canals.

CAPITAL OF OLD BELIEVERS -----
Vilkovo is more than 250 years old. It was founded by dissenting old
believers, who escaped persecution and the kozaks of Zaporizhzhia and the
Don River (Cossacks in most history books). Since the original name of the
town was Lipovanske, its residents were called Lipovany. The town was given
its present-day name 100 years ago. The name Vilkovo, which has in its root
the word vilka (fork in Russian), appeared because the Danube splits in this
place into what looks like a three-pronged fork.

Old believers are still the main residents of the town, which is probably
their largest settlement in Ukraine. They still observe all the ancient
customs that appeared before the split of the Russian Orthodox Church in
the 17th century, without allowing even minor deviations from the ancient
canons. Vilkovo residents still make the sign of a cross with two fingers
and take low bows touching the ground.

Men coming of age do not shave their beards, while women wear kerchiefs on
their heads. The Old Rites Church has different entrances for men and women.

The women are allowed to enter the men's side of the church only to place a
candle. The customs of old believers are quite rigid. Drunkenness and
idleness are considered the greatest sins. Until very recently, marriages
between old believers and modern Orthodox believers were forbidden. Today,
such marriages can take place, but only on condition that the modern
Orthodox believer converts to the old or, as they call it locally,
"lipovanska" faith.

It is said that if a thief is caught among the old believers, he/she will be
let go the first time. But if they are caught a second time, they will have
a sack thrown over their head and thrown into the Danube. Nevertheless, as
strict as the Lipovany may be, they are always glad to welcome guests and
show their genuine hospitality.

IN THE KINGDOME OF FISH AND BIRDS -----
The flooded areas around the Danube make up one of the largest complexes
of swamp lands in Europe. Here one can see rare species of birds, fish and
plants, which were almost relegated to the "dustbin of extinction". For
example, there is nothing strange in seeing in Vilkovo a heron standing on
the bank of a canal. Meanwhile, the diversity of bird species that can be
seen on the reed islands, of which there are over hundred in Vilkovo, is
incomparable.

One can often see unique pink pelicans flying in flocks. There are enough
fish in the Danube both for the birds and for fishermen. Here one can catch
Atlantic sturgeon, umber, beluga, pike, stellate sturgeon, Black Sea
herring, a type of carp and Danube salmon. With such the abundance of fish
the locals simply ignore such "trifles" as perch or carp. Local fishers like
to boast: "One day you go in a boat and see a log in the water. Coming
closer to it, you realize that it is a glutton cat-fish. It eats so much
fish that its stomach forces it up to the surface."

After hearing such tales one would surely want to go fishing in Vilkovo.
Dozens of fish species are available for sale in the town at extremely low
prices - on average, Hr 1-2 per kilo.

But a tourist must be aware of the fact that Vilkovo mosquitoes are a real
nuisance for those who come unprepared. They are much larger than common
city mosquitoes and are much more resistant to various sprays and ointments.
So, if you decide to go to Vilkovo, do not forget to take all the possible
means of protection against these insects, otherwise you will waste half
your holiday battling the nasty kamikaze mosquito attacks.

PROTECTION OF NATURE OR TRIVIAL PROFITEERING? -----
Reeds and canes are another treasure of Vilkovo and the Danube delta in
general. In 1944, the Germans and Romanians forced the residents of
Lipovanske to cut down the reeds and then sent them to Germany by trains.

Today, this vicious practice is still maintained. It is a know fact that
reeds and canes are outstanding construction materials. They are
ecologically clean, which makes them even more precious.

Today, a Dutchman or German is ready to pay huge money for having the roof
of his villa covered with canes. Paradoxical as it may seem, reeds are
destroyed by those whose duty it is to protect them. Oleksandr Voloshevych,
the Director of the Danube Biosphere Reserve set up in 1990s, intentionally
keeps the water low in the Stentsovsko-Zhebryanovski flooded grounds (7,200
ha) to enable combines or tractors to cut down the precious export material.

For fear that with such an approach to the protection of nature their
prosperous and wealthy land will turn into a desert in several years,
Vilkovo residents are doing their best to draw the attention of the
Ukrainian government and the international community to this grave
situation.

Meanwhile, until the local natural habitat can still amaze you with the
richness of its flora and fauna and the river can offer you a "feast of
fish", hurry up and go check it out before it's too late! -30-
-------------------------------------------------------------------------------------------------
LINK: http://www.kyivweekly.com/english/article/?746
===============================================================
14. UKRAINIAN-POLISH CEMETERY DISPUTE STILL UNRESOLVED

TV Polonia, Warsaw, in Polish 1500 gmt 10 Jun 05
BBC Monitoring Service, UK, in English, Fri, Jun 10, 2005

WARSAW - [Presenter] Don't count your chickens before they are hatched -
this saying perfectly matches what is going on around the Orleta Cemetery
in Lviv [western Ukraine]. Its [official, ceremonial] opening is again in
question. The Polish and Ukrainian authorities are giving assurances that
an accord will certainly be attained, but the [city] councillors who are
deciding about the matter are constantly finding buts.

[Reporter] It had seemed that after a few years the dispute around the
cemetery had finally died down. Its opening date had already been announced
and preparations for the historical ceremonies are in progress. But the fate
of the cemetery is still uncertain.

The decision by the Lviv councillors was to have been a pure formality, but
meanwhile the discussion has flared up anew. Some of them do not like the
inscription [intended to be] on the main monument: Here lies a Polish
soldier who fell for his country.

[Andriy Stasiv, Lviv councillor] Tomorrow is another day, and I hope that we
will achieve an accord, and that we will convince the stubborn councillors,
and we will finally manage to attain a compromise.

[Reporter] Despite everything, our politicians are of good cheer.
[Aleksander Kwasniewski, Polish president] It is high time that this
cemetery, which has been ready and prepared for years, was ceremonially
opened. And this will happen in June, just as President Yushchenko promised.

[Reporter] This is not to distort reality. The prime minister of Ukraine
wants the cemetery opened. Yuliya Timoshenko is in our country on a visit.
[Yuliya Timoshenko, Ukrainian prime minister - in Ukrainian, with Polish
translation overlaid] I love Poland very much. I thank the Polish nation and
government and Poland for their powerful and wonderful support during the
Orange Revolution.

[Reporter] The Orleta Cemetery contains the graves of Poles who fell in
battles with the Ukrainians after World War I and during the
Polish-Bolshevik war. There are 3,000 soldiers buried here, most of them
teenagers. Lviv councillors are to return to the issue of the opening of the
cemetery next week. -30-
===============================================================
15. THE TOURISTS ARE COMING
Current holiday season will mark a turning point in Crimean history
Some central government moves hurt tourist industry

By Natalia Melnyk, The Day
The Day Weekly Digest in English, #19
Kyiv, Ukraine, Tuesday, 7 June 2005

It's safe to say that the Crimea has made a breakthrough this holiday season
(spring-summer 2005); the peninsula has finally become a real international
resort. This season, a German chartered flight program will start ferrying
three flights from Frankfurt every week, along with tourist groups from
Finland and Poland.

According to the Web site www.podrobnosti.com, the Crimea has a total of
169 operational resorts with almost 56,000 beds (23 resorts more than last
year) and another 11,500 beds. The occupancy rate is 48%, with 25,000
vacationers now basking in the Crimean sun.

In other words, neither the 10-15% increase in the value of a Crimean
vacation in 2003 nor the 10-20% rise in costs last year have dampened
tourists' enthusiasm. Officials at the State Tourist Administration believe
that this tourist season will mark a turning point for the Crimea: FIRST,
because a number of tourist sanatoriums will be testing their pricing
policies and SECOND, many resorts offering accommodations will have
to submit service quality reports, especially in regard to foreign tourists,
who have finally begun arriving en masse to the Crimea.

However, there is one big problem that must be resolved: the tourist influx
overload on the southern seacoast and the lack of such an influx in the
eastern part of the peninsula, including Feodosiya, Chornomorske and
Leninske district (Kazantyp). Feodosiya experienced a major breakthrough
this year, when a German cruise liner, the first ever in the past two years,
arrived for the May holidays.

Last year 240,000 tourists visited the Crimea, and this year the local
authorities expect 300,000. All the necessary prerequisites are here, says
Volodymyr Tsaruk, head manager of a local travel agency: new pensions and
hotels, an adequate number of beaches, and finally, a reasonable price-
setting policy, which may be regarded as Crimean know-how. Feodosiya
Mayor Volodymyr Shaiderov says an aqua-park and entertainment center
investment project will be carried out in the next two years.

On the negative side, experts say that all the new pensions and hotels are
being built in a chaotic fashion. The local authorities need to work out and
approve a master plan for this region, but this will cost the autonomy's
budget a total of UAH 3.5 million.

It stands to reason that this is not a very large sum, considering that last
year the Crimean sanatorium and resort complex generated around a billion
hryvnias. However, as Crimean Resorts Minister Oleksandr Tarianyk complained
toward the end of last year, the money was transferred to the central budget
as sums reflecting commerce, housing and utilities, communications,
transportation, and other revenues.

"For example, Cokes, Obolon beers, and Soyuz Viktan vodkas were sold all
summer in the Crimea," podrobnosti.com quotes the minister as saying, "but
we had to send all this money to Kyiv, where the manufacturers are legally
registered." Meanwhile, the Crimea is spending money, among other things,
on the recycling of mind-boggling quantities of garbage left by vacationers.

In a word, Oleksandr Tarianyk is adamantly opposed to the existing system of
tallying holiday season revenues. He says that all over the world such
revenues are calculated on the basis of how much money every tourist leaves
behind. In the Crimea, the resort complex's efficiency is measured by the
sums payable as taxes. It is also common knowledge that out of every ten
dollars spent in the Crimea by a vacationer only one dollar is spent on
accommodations in a hotel, which had to pay taxes to the republican budget.

The rest of the money that a vacationer spends goes on air/rail/taxi fares,
buying resort goods, food, and paying for various kinds of entertainment.
According to the minister, the autonomy plans to hire leading Ukrainian
economists to work out a new method for calculating revenues from the
tourist season. Afterwards, they will have a better leg to stand on when the
time comes to discuss the question of profit redistribution.

Speaking of revenues, despite the optimistic indicators of foreign tourism
to the Crimea, this year the central government has almost done the
peninsula a disservice - and not just the peninsula. Associations of tourist
agencies are complaining about cabinet's annulment of the zero- tourist
import VAT (envisaged by amendments to the 2005 central budget), and they
insist that this will increase tourist service costs and damage Ukraine's
image.

According to a letter sent to President Yushchenko, the cancellation of the
tourist entry VAT (effective as of March 31, 2005, actually backdated)
shocked a number of foreign partners of Ukrainian tourist operators and
damaged Ukraine's image as a country with a civilized business environment.
Tourist operators' statistics indicate that this innovation will lead to a
20% increase in the cost of services provided under contracts made with
foreign partners in 2004. The sharp decline in the dollar's exchange rate
will add another 6%.

Accordingly, associations of travel agencies and companies, together with
Derzhturadministratsiya [State Tourist Administration] experts and
parliamentary committees, have revised the tax rate amendments and are
asking cabinet to consider them. They also want the president to instruct
the government to change these norms to reflect the expert's suggestions as
soon as possible. Viktor Yushchenko has yet to respond. -30-
===============================================================
16. MOZART'S CONNECTION TO UKRAINE
Few people know that the life of Wolfgang Amadeus Mozart is somehow related
to Ukraine. In fact, the famous Austrian composer almost became a resident.

Culture & History: by Stanislav Tsalyk
Kyiv Weekly, Issue #20 (160)
Kyiv, Ukraine, Friday, May 27 - Jun 3, 2005

Nestor Kukolnik, a popular Russian poet and novelist of the 19th century,
claimed that Mozart passed his exams in an academy in Bologna, Italy
together with the Ukrainian Maksym Berezovskiy. Many authors later took
up this legend, considering it the starting point for Mozart's connection to
Ukraine.

Contemporary encyclopedias offer different information. Their authors write
that Mozart became a member of the Bologna Philharmonic Academy in 1770,
while his Ukrainian colleague entered the academy a year later. Although the
two young me, for a short time, had the same teacher by the name of
Giambattista Martini, the young musicians studied separately. It is not even
known whether they were acquainted.

Even if they met each other, what could have possibly bound a 14-year-old
Austrian, who stayed in Bologna for a short period during his tour around
Italy, and a 25-year-old native of the village of Hlukhiv, Ukraine who
stayed for six years in Bologna in an attempt to master his musical skills?

Here, one must pay closer attention to another fact. When studying in
Bologna with Signor Martini, Mozart started working on the opera entitled
Mithridate, Re di Ponto (King of Pontus). The young composer focused his
creative imagination on the Crimean coasts, to where Mithridate VI, Eupator
the Great, escaped after having been defeated by Roman troops and began
gathering military forces for war. Mozart did not know, at the time, that
several years later his fate would once again be decided on these lands.

Mozart again used the Ukrainian theme a bit later in Vienna in 1781. Musical
aficionados say that the composer used melodies from Ukrainian folk songs
in his opera, Die Entfuhrung aus dem Serail (Kidnapping from Serail), and
his 12th piano sonata. This is not all that astounding given that, in those
years, many immigrants from Halychyna resided in Vienna.

In 1790, a new ambassador from the Russian Empire, 38-year-old Count
Andrei Razumkovskiy, who was the son of the last Ukrainian hetman, arrived
in the Austrian capital. The ambassador regularly held musical evenings in
his palace in Vienna, to which he invited famous Austrian composers, artists
and writers. Mozart was among the regular guests at the ambassador's
residence.

Razumkovskiy was a connoisseur and appreciator of classical music and
even performed in a string quartet. Given this fact, it is no wonder that
Mozart appreciated the ambassador's talent. Soon, their relations turned
into friendship and this was when an interesting plot began to develop which
nearly resulted in the composer moving to the places visited by the
character from his earlier opera - Mithridate.

The prehistory is as follows. The almighty Prince Grigori Potyomkin intended
to turn Novorossiya, the territory joined to the Russian Empire at the time
(today it is the southern part of Ukraine and Crimea), into a prosperous
land. For this purpose, he decided to gather the best actors and musicians,
in order to make St. Petersburg envy him.

Potyomkin requested that Russian ambassadors search for gifted people
abroad. Razumkovskiy was also given such instructions. Having met Mozart,
the latter understood that he would not find a better candidate for
Potyomkin. His new friend was an outstanding musician with a European
name and reputation. Except, the musician's financial standing was not so
great.

The Russian ambassador took to persuading the Austrian composer to visit
Ukraine. He reminded him that he, Mozart, could look forward to great
conditions with a high salary and the patronage of Potyomkin. Mozart felt
this was an offer he simply could not refuse.

For the time being, Mozart traveled to Prague, where he was ordered to
compose the opera La Clemenza di Tito (Clemency of Tito), especially for
the coronation of Leopold II. Meanwhile, Razumkovskiy reported to
Potyomkin, in a letter, the results of his work.

On September 15 he wrote: "I am doing my best to send you the best
harpsichord player and one of the most skilful composers in Germany by the
name of Mozart, who is a bit disappointed with his current state of affairs
and would like to make this trip. He is now in Bohemia, but he will return
soon. If Your Highness allows me, I can invite him for a short time so that
you will hear his performance and then, if you consider it appropriate, hire
him." But in the 18th century the postal service worked very slowly. Indeed,
several months had passed by the time Razumkovskiy's letter from Vienna
reached Ochakov, where Potyomkin had read it and sent a response letter.

Unfortunately, two and a half months after the ambassador sent the letter,
on the night of December 5, the renowned composer passed away. It is likely
that only his early death was what prevented Mozart from coming to Ukraine.

Another Ukrainian trace in Mozart's life was connected with his younger son.
In 1808, the 17-year-old Franz Xavier Mozart arrived in Lviv with a written
recommendation from his teacher Antonio Salieri, who was accused of
poisoning Mozart. Franz was given a favorable offer to become the musical
tutor to the daughters of Count Viktor Bavorovskiy.

The young Mozart felt very lonely at in count's estate in Pidkamin, near the
town of Rohatyn. After all, nobody spoke German and there was no form of
entertainment. So, when, in a year, he was offered to give musical classes
to the children of the emperor's governor, von Janiszewski, the young man
accepted the proposal with great pleasure.

He moved to the town of Burshtyn, where he organized the first secular choir
in the city, staged plays and gave concerts, during which he performed his
father's works and his own original compositions.

Two years later, the young composer moved to Lviv, where he taught music
for many years in Polish aristocratic families, specifically at the homes of
the Pogocki, Czartoriski and Sapeg families. In 1826, the young Mozart
founded and headed the St. Cecil Choir, which was comprised of 400
amateur singers.

It was in this choir that the first music school in Lviv, entitled the
Musical Society of St. Cecil, was based. Needless to say, the society
played an important role in the cultural life of the entire region and laid
the foundations for the establishment of the Conservatory of the Halychyna
Musical Society.

Mozart's son composed a number of his renowned works, including two
sonatas, several songs, a cantata and a polonaise. Naturally, he showed
interest in Ukrainian folklore. For example, his Piano Variations in D Minor
were written on the motif of a Ukrainian comical song called My Neighbor
Has A White House.

The composer made many tours through Ukraine, performing in Kyiv and
Kharkiv and a number of other cities. His concerts always gathered a full
house and were a huge success.

In 1838, the younger Mozart left Halychyna forever, despite the fact that he
had spent the majority of his life there - specifically 30 years of the 54
that he lived. His works are performed in the Lviv conservatory to this very
day. -30- [The Action Ukraine Report - AUR #500]
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LINK: http://www.kyivweekly.com/english/article/?684
===============================================================
17. WEBSITE: PICTURES OF KIEV

From: John Farrar, Travel Photographer, pictures@virtualkiev.com
To: info@artukraine.com, Sent: Saturday, June 11, 2005

Pictures of Kiev by travel photographer John Farrar.
To see pictures click on URL: http://www.virtualkiev.com.
===============================================================
18. UKRAINE: HRYHORIY SKOVORODA THE TRAVELING PHILOSOPHER

Taste of Life: by Serhiy Shevchenko
Kyiv Weekly, Issue #22 (162)
Kyiv, Ukraine, Jun 10-17, 2005

The route of a wandering philosopher named Hryhoriy Skovoroda became
one of the most successful quests for answers to such eternal questions as
“What is the meaning of life?”, “What is good and evil?”. By following the
path of the philosopher through the territories of Kyiv, Sumy and Kharkiv
oblasts, one can gain a better understanding of Skovoroda, his ideas and
life in general.

CULTURAL ROUTES -----
The route of a wandering philosopher named Hryhoriy Skovoroda became
one of the most successful quests for answers to such eternal questions as
“What is the meaning of life?”, “What is good and evil?”. By following the
path of the philosopher through the territories of Kyiv, Sumy and Kharkiv
oblasts, one can gain a better understanding of Skovoroda, his ideas and
life in general

The route of Skovoroda’s travels through the territory of Ukraine would
enjoy great popularity among both Ukrainians and foreign tourists. The
greatest minds of the past and present have many a time reflected on
Skovoroda’s heritage. Indeed, Skovoroda influenced such great writers and
poets as Nikolai Gogol, Fyodor Dostoyevskiy, Lev Tolstoi and Joseph
Brodskiy. Even the late, great Pope John Paul ?? quoted Skovoroda in one
of his sermons: “Everything passes away, only love remains. Nothing lasts
forever but God and love”.

So, let us try to outline at least theoretically the route of the
philosopher’s travels through the places historically associated with his
name.

Village of Chernukhy, Sumy oblast — his parents’ house

It was precisely in this village that a kozak sotnia (Cossack Hundredth) of
the Lubny Regiment, in which Hryhoriy’s grandfather and father served, had
settled. Skovoroda’s parents were common folk, who “stood out for their
honesty, hospitality, piety and peaceful nature.” the memorial museum, where
a tourist can feel the atmosphere in which the future philosopher grew up.

Kyiv, Kontraktova Ploshcha — alma mater

Young Hryhoriy left his parents’ home to travel to Kyiv where he studied at
the Kyiv Mohyla Academy. In 1734, he was admitted by the academy, in which
he “excelled over his peers in terms of academic success and praise”, even
despite the fact that he took several rather protracted “academic vacations
for valid reasons”. One such break was connected with a difficult choice in
his life. An escort of the Russian empress noticed the wonderful voice of a
gifted adolescent and soon the Kyiv student joined the imperial choir in St.
Petersburg.

But neither the impressive costume of the choirboy nor a decent salary
managed to attract Skovoroda. He deliberately changed his voice, began
stuttering and tried passing himself off as a crazy boy. Soon he asked for
permission to return to the academy in Kyiv, where he substituted his ornate
caftan (an ankle-length coatlike garment made of silk or cotton) for street
clothing.

A little bit later, Skovoroda decided to “visit other lands” and spent
several years traveling abroad. The young journeyman had all the
opportunities to find success in diplomacy, since he knew Latin, Greek,
Polish, German and Church Slavonic... But Skovoroda did not consider that
to be the work that was “closer to the heart”. He summed up his travel
experience with the following words: “Do not look for happiness beyond the
sea. Do not ask a person to give you happiness. Do not go to other planets
or walk through Jerusalem in search of it. Indeed, the air and sun is always
with you wherever you are.”

Pereyaslav-Khmelnytskiy, former college. Skovoroda the teacher

Having returned from his travels abroad and graduated from the academy,
Skovoroda began teaching poetry in Pereyaslav in the fall of 1753. But
Skovoroda did not stay long in Pereyaslav. The local bishop did not like the
philosopher’s freewill. When he wrote a treatise for his students with new
methods of composing poetic verses, the dean of the college called this work
“heresy”...

Village of Skovorodinovka, Kharkiv oblast — “the last haven”

The path of Skovoroda to becoming a philosopher was long. He dedicated
28 years of the 72 years of his life to philosophical work. In 1769, he
received his last salary as a teacher. Since then Skovoroda chose to become
a wandering philosopher. According to his friends, the usual traveling
baggage of Skovoroda consisted of two old shirts, a woolen caftan and a pair
of boots. Despite such seeming modesty, he felt quite comfortable. The
permanent items Skovoroda carried with him in his travels was a sack over
his shoulder, a Bible, a flute and a walking stick.

Skovoroda chose the village of Pan-Ivanivka in Kharkiv oblast as the last
destination of his route. Today, this village is named Skovorodinovka after
the great philosopher. There you will find a literary memorial museum of
Skovoroda that preserves unique exhibits, including the traveler’s watch and
his violin.

The story goes that one evening Skovoroda took a spade and went to the
garden, where he began digging a narrow pit. In response to the question
Kovalynskiy posed in astonishment Skovoroda said: “It’s time, my friend, to
end my wanderings!” On the next day, November 9, 1794, he was found dead
in his room. -30- [The Action Ukraine Report - AUR#500]
-------------------------------------------------------------------------------------------------------------
LINK: http://www.kyivweekly.com/english/article/?747
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