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Action Ukraine Report

"THE ACTION UKRAINE REPORT - AUR"
An International Newsletter
The Latest, Up-To-Date
In-Depth Ukrainian News, Analysis, and Commentary

"Ukrainian History, Culture, Arts, Business, Religion,
Sports, Government, and Politics, in Ukraine and Around the World"

"THE ACTION UKRAINE REPORT - AUR" - Number 568
Mr. E. Morgan Williams, Publisher and Editor
Washington, D.C., Kyiv, Ukraine, FRIDAY, September 23, 2005

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

1. UKRAINE: TEN POINT MEMORANDUM OF UNDERSTANDING SIGNED
BY THE GOVERNMENT AND THE OPPOSITION
Ukrayinska Pravda in Ukrainian
Kyiv, Ukraine, Thursday, September 22, 2005
The Action Ukraine Report (AUR) Monitoring Service in English
Kyiv, Ukraine, Friday, September 23, 2005

2. PEELING AWAY UKRAINE'S 'ORANGE REVOLUTION'
Can the beleaguered president weather the latest crisis?
ANALYSIS: By Alexa Chopivsky, Reporter, NBC News
MSNBC, New York, New York, Thursday, Sept. 22, 2005

3. UKRAINE'S PARLIAMENT APPROVES NEW PM AFTER RIVAL'S DEAL
By Steven Lee Myers, Moscow
The New York Times, NY, NY, Friday, September 23, 2005

4. YUSHCHENKO OVERCOMES CRISIS IN UKRAINE
By Tom Warner in Kiev, Financial Times
London, United Kingdom, Thu, September 22 2005

5. UKRAINE AVERTS A CRISES: PARLIAMENT BACKS NEW
PM NOMINEE OF PRESIDENT YUSHCHENKO
By Ron Popeski, REUTERS, Kiev, Ukraine, Thu, Sep 22, 2005

6. YUSHCHENKO SCORES MAJOR POLITICAL VICTORY AS PARLIAMENT
CONFIRMS HIS PRIME MINISTER NOMINEE YURY YEKHANUROV
Agence France Presse, Kiev, Ukraine, Thu, Sep 22, 2005

7. PRESIDENT YUSHCHENKO SIGNS DEAL WITH YANUKOVYCH TO GET
PRIME MINISTER CANDIDATE THROUGH PARLIAMENT
COMMENTARY AND ANALYSIS: By Taras Kuzio
Eurasia Daily Monitor, Vol 2, Issue 177, The Jamestown Foundation
Washington, D.C., Friday, September 23, 2005

8. UKRAINE PRESIDENT RESTRUCTURES HIS ADMINISTRATION
TV 5 Kanal, Kiev, in Ukrainian 0717 gmt 22 Sep 05
BBC Monitoring Service, UK, in English, Thu, Sep 22, 2005

9. FIVE FACTS ABOUT NEW UKRAINIAN PRIME MINISTER YEKHANUROV
Reuters, Kiev, Ukraine, Thursday, September 22, 2005

10. FRAGILE DEMOCRATIC FLOWERING IN UKRAINE
The Orange Revolution raised hopes of real democracy in Ukraine
By Robin Lustig, BBC News, United Kingdom, Tuesday, Sep 20, 2005

11. "ORANGE SUICIDE"
COMMENTARY: By Olexandr Sushko, Head of Centre
of Peace, Conversion and Foreign Policy of Ukraine
For Ukrayinska Pravda, Kyiv, Ukraine, Thu, September 22, 2005

12. UKRAINE'S INSTABILITY OR YUSHCHENKO VS. TYMOSHENKO
OPINION: Peter Lavelle, RIA Novosti Political Commentator
RIA Novosti, Moscow, Russia, Wednesday, September 21, 2005

13. "ORANGE CRUSHED"
REVIEW & OUTLOOK: The Wall Street Journal, NY, NY, Thu, Sep 22, 2005

14. DEMOCRACY'S UNLEARNED LESSONS
COMMENTARY: By Volodymyr Pavliv
Ukrayinska Pravda, Kyiv, Ukraine, Wed, September 21, 2005

15. UKRAINE: NO CLEAR WINNERS FROM GOVERNMENT CRISIS
FEATURE ARTICLE: By Robert Parsons
Radio Free Europe/Radio Liberty (RFE/R)
Prague, Czech Republic, Thu, 22 September 2005

16. "UKRAINIANS DO NOT LIVE BY BREAD ALONE"
COMMENTARY: By Roman Kupchinsky, Former Director
Ukrainian Service of Radio Free Europe/Radio Liberty.
Moscow Times, Moscow, Russia, Wed, September 21, 2005

17. EU BACKS YUSHCHENKO AS UKRAINE RETURNS TO NORMAL
By Andrew Rettman, Euobserver, Brussels, Belgium, Thu, Sep 22, 2005

18. UNTIMELY THOUGHTS [PETER LAVELLE] IS KYIV BOUND FOR A
WEEK AT THE END OF SEPTEMBER, START OF OCTOBER
Yushchenko must break the back of economic oligarchy
Untimely Thoughts: By Peter Lavelle
The Viktor & Yulia Show - Going to Ukr, Vol 3, no 165 (389)
Moscow, Russia, Wed, September 21, 2005

19. PERMANENT REPRESENTATIVE OF PRESIDENT TO VERKHOVNA
RADA SERHIY SOBOLEV RELIEVED OF THE POSITION
Ukrinform, Kyiv, Ukraine, Thursday, September 22, 2005

20. REFORMS TO FORGE AHEAD AMID FEUD
INTERVIEW: Ukraine Foreign Minister Borys Tarasyuk
By David Sands, Washington Times
Washington, D.C., Wed, September 21, 2005

21. YUSHCHENKO FINDING IT CAN BE LONELY AT TOP
COMMENTARY: By Denys Volkov and Vitaliy Milentyev
The Winnipeg Free Press, Winnipeg, Manitoba, Canada
Wednesday, September 14th, 2005

22. FORMER UKRAINIAN PRIME MINISTER TYMOSHENKO SAYS
RUSSIA'S PUTIN IS A WORTHY, EXCELLENT LEADER
Ekho Moskvy radio, Moscow, in Russian 1800 gmt 22 Sep 05
BBC Monitoring Service, UK, in English, Thu, September 22, 2005

23. WE WILL OVERCOME!
His death has changed Ukraine forever
EDITORIAL: Ukrayinska Pravda, Kyiv, Ukraine, Fri, Sep16, 2005

24. KUCHMA AND AIDES 'ORDERED KILLING OF JOURNALIST'
Andrew Osborn in Moscow, The Independen
London, United Kingdom, Thursday, Sep 22, 2005

25. FOR JUSTICE SAYS INT FEDERATION OF JOURNALISTS
AS PARLIAMENT REPORT FUELS ACCUSATIONS OVER GONGADZE
International Federation of Journalists (IFJ)
Brussels, Belgium, Thursday, 22 September 2005
=============================================================
1. UKRAINE: TEN POINT MEMORANDUM OF UNDERSTANDING SIGNED
BY THE GOVERNMENT AND THE OPPOSITION

Ukrayinska Pravda in Ukrainian
Kyiv, Ukraine, Thursday, September 22, 2005
The Action Ukraine Report Monitoring Service in English
Kyiv, Ukraine, Friday, September 23, 2005

THE SIGNED AGREEMENT

Being aware of responsibility before the people of Ukraine in times of a
dangerous political crisis, we believe it is our patriotic duty to begin a
constructive dialogue between the opposition and the government.

This dialogue is focused on the strategy of overcoming the crisis, putting
Ukraine on the road of development of prosperous society, on the road of
public reconciliation, and the consolidation of patriotic political forces.

We view the provisions of this memorandum as a substantive contribution to
the signed "Declaration of Unity and Cooperation for the Future of Ukraine,"
as a mechanism to implement this Declaration, as a step aimed at over-
coming divisions, as our wish to shape a constructive dialogue for the good
of the people of Ukraine. Considering this we deem it necessary to agree
on the following:

1. Implement political reform.

2. The impermissibility of political repressions against the opposition.

3. The tabling of the Amnesty Law, which would address Art. 157 and Article
158 of the Criminal Code of Ukraine.

4. The immediate enactment the Amendments to the Law of Ukraine on
Status of Deputies of Local Councils, which regulates the procedure of
bringing deputies of local councils to justice.

5. The expedited adoption of the law of Ukraine "On the status and rights of
the opposition" (which would give parliamentary factions of opposition
parties chairmanship in the following Rada committees: the Committee on
Freedom of Speech and Information; Budget Committee; Committee on
Combating Organized Crime and Corruption; Special Commission of the
Verkhovna Rada on Privatization Issues).

6. The expedited adoption of the Laws of Ukraine "On Cabinet of Ministers
of Ukraine" and "On President of Ukraine."

7. The transparent formation of the Cabinet of Ministers on the principles
of professionalism and separation of business from government.

8. The legislative guarantees of ownership rights.

9. The impermissibility of pressuring judicial organs.

10. The non-interference of government and state officials into preparations
and conduct of elections to the Verkhovna Rada, elections to local councils,
village and municipal councils, which will be held on March 26, 2005;
non-use of administrative resources.

Full and unconditional observance of the signed agreement is proof of the
possibility of consensus between the government and the opposition, ability
to put the interest of the people above personal ambitions.

Signed on September 22, 2005

Acting Prime Minister of Ukraine - Yuriy Yekhanurov
From the Party of Regions - Viktor Yanukovych
President of Ukraine - Viktor Yushchenko
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NOTE: Article translated into English for The Action Ukraine Report
(AUR) Monitoring Service by Olga Fishel, Washington, D.C.
=============================================================
2. PEELING AWAY UKRAINE'S 'ORANGE REVOLUTION'
Can the beleaguered president weather the latest crisis?

ANALYSIS: By Alexa Chopivsky, Reporter, NBC News
MSNBC, New York, New York, Thursday, Sept. 22, 2005

NEW YORK - On a visit here for the United Nations 60th anniversary summit, a
week after he fired his government, Ukrainian President Viktor Yushchenko
compared the atmosphere in Ukraine to "the spirit that comes after a big
rain and thunderstorm, when you have so much fresh air that you can't breath
enough of it."

Just one week later, there is a new storm brewing - one that threatens to
flatten the existing political landscape and make Yushchenko, the hero of
the "Orange Revolution," a lame-duck president.

But, for the moment, he seems to have weathered the maelstrom after
securing his choice for prime minister on Thursday.

POLITICAL INFIGHTING
In what was said to be an effort to root out corruption and quash infighting
among top leaders, Yushchenko abruptly dismissed his government on Sept.
8. Prime Minister Yulia Tymoshenko, a fiery leader who played a key role in
uniting demonstrators on Kiev's Independence Square during the Orange
Revolution last winter, was among those sacked.

Only a day after losing her job, Tymoshenko announced she was forming an
opposition that will run against Yushchenko in Ukraine's March 2006
parliamentary elections. Yushchenko rejected Tymoshenko's subsequent call
to be reinstated as his number two, plunging Ukraine into further political
chaos.

But, on Thursday, just two days after an initial 'no' vote, Yuri Yekhanurov,
Yushchenko's replacement for prime minister, was approved in Parliament.

Yushchenko secured Yekhanurov's approval only after making a deal with his
former Orange Revolution foe Viktor Yanukovich, who helped propel
Yekhanurov over the top.

Securing the stability of a loyal prime minister was vital to Yushchenko
ahead of the critical parliamentary elections coming up in March, but the
threat from the opposition still exists.

'HURRICANE YULIA'
"At the moment it's a very fluid situation. Yushchenko has a chance to pull
something together but it will be a real test of his political skill. In the
past few months he hasn't been demonstrating that skill," said Columbia
University Professor Mark von Hagen.

"My fear is that Tymoshenko is a political animal, and Yushchenko isn't,"
said Taras Kuzio, a visiting professor at George Washington University.
"You've heard of Katrina. This is 'Hurricane Yulia.'"

An energetic orator, Tymoshenko is known for her political smarts, as well
as good looks that are distinguished by her signature braided hairstyle.
Forbes magazine recently ranked her third on its 100 Most Powerful
Women list. Elle magazine put her on its May cover.

"Many people think Tymoshenko will win in March. She was like a mother
symbol on Maidan [Independence Square]," said Ukrainian television
journalist Maryana Voronovych.

DISILLUSIONMENT
Ukrainians have expressed increasing frustration at the slow pace of reforms
that were promised during the Orange Revolution.

"The Orange Revolution gave the people hopes for a better life and a new
relationship between citizens and authorities. Society gave a clear signal:
apart from bread and butter, the people wanted a different attitude from
officials, policemen, judges, and communal service," wrote Yulia Mostovaya
in a Kiev-based weekly publication, "Zerkalo Nedeli."

There is a sense that the Orange Revolution offered an opportunity for
change that was never seized upon. With little movement on the promised
reforms, there is now a fear that the pervasive mistrust of government is
tarnishing Yushenko's image.

Yushchenko's "biggest problem is that the public will come to see him like
all the others," said Kuzio. "Kuchma [the former Ukrainian president] had
his oligarchs, now Yushchenko has his oligarchs. What's changed? The
people saw in Yushchenko someone who was different."

AMERICAN SUPPORTERS STAND BY THEIR MAN
Yushchenko explained why he had dismissed his government last week to a
group of American based supporters at a New York event for The Orange
Circle, a group dedicated to continuing the ideals of the Orange Revolution
and founded by prominent democracy activist Adrian Karatnycky.

"We saw Ukraine losing momentum, we saw Ukraine's ideals that were
cherished on the Maidan [Independence Square] falling into jeopardy," the
president said.

"At the end of the day, the conflict between several government leaders
could have led to a serious national crisis and conflict," Yushchenko said
"This was the way we passed the test of self-purification. We proved that
we're still responsible to the people."

Despite the political turmoil at home, Yushchenko received a warm welcome
at the Orange Circle event and maintains the support of the group's founder,
Karatnycky. "Yushchenko is that honest leader Ukraine has needed since its
independence," he said.

But Kuzio from George Washington University believes that the upcoming
months will be tough ones. "Many people say that he's naïve, he's not a
hands-on leader. They say he only acts in a crisis, when it's already too
late."

Professor Alexander Motyl, Deputy Director of the Center for Global Change
and Governance at Rutgers, agrees with Kuzio. "His primary challenge is to
persuade the electorate that his government is not 'like them,'" said Motyl,
referring to former President Kuchma's regime.

Motyl went on to say that Yushchenko needs to show Ukrainians that his
government "is still fully committed to the ideals of the Orange Revolution,
and that it is capable of changing things for the better."

NOT READY TO GIVE UP THE FAIRY TALE
Commenting on the shifting Ukrainian political landscape, former U.S.
National Security Advisor Zbigniew Brzezinski recalled a young Ukrainian
girl telling him that the Orange Revolution was "like a fairy tale."

"And I said to myself, 'There's a Prince Charming in it. There's a very
pretty princess in it,'" referring to Yushchenko and Tymoshenko.

Brzezinski warned, "But a fairy tale, when you wake up, can turn into a
nightmare. It is terribly important to demonstrate that the Orange
Revolution was not just a fairy tale."

For now, Yushchenko is determined to hang on and his victory on Thursday
shows that he has no intention of giving up easily. -30-
---------------------------------------------------------------------------------------------------------
LINK: http://msnbc.msn.com/id/9428617/
---------------------------------------------------------------------------------------------------------
FOOTNOTE: The Action Ukraine Report congratulates Alexa Chopivsky
on her fine article. I visited with her briefly in Washington, D.C. on
Monday, September 19th at CSIS where Ukraine's Foreign Minister
Borys Tarasyuk made a presentation.

Alexa grew up in the Washington, D.C. area. She mentioned on Monday
she is being assigned to the NBC office in London. We also offer her
congratulations and best wishes on her new assignment.

Alexa's mother, Mrs. Laryssa Courtney, has been involved in the
Washington, D.C. area Ukrainian activities for many years and most
recently served as chair of The Washington Group's Cultural Committee,
helping promote Ukrainian art and culture in the region. Alexa's
grandmother was held as a Ukrainian prisoner in a German camp
during WWII.

Alexa's father, George Chopivsky, has been active regarding Ukrainian
matters for many years and has been a businessman and investor in
Ukraine for the past ten years. George's grandfather's were both high-
level officials in the new Ukrainian government in Kyiv during the brief
period of independence after WWI. One of his grandfather's was later
arrested and imprisoned by the Soviets and died in a prison camp in
Siberia. Alexa Chopivsky may be contacted at:
Alexa.Chopivsky@nbcuni.com. EDITOR
=============================================================
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=============================================================
3. UKRAINE'S PARLIAMENT APPROVES NEW PM AFTER RIVAL'S DEAL

By Steven Lee Myers, Moscow
The New York Times, NY, NY, Friday, September 23, 2005

MOSCOW - President Viktor A. Yushchenko of Ukraine won parliamentary
approval of a new prime minister on Thursday on a second vote after striking
a deal with his bitter rival in last year's disputed presidential elections.

With his political coalition having splintered and his presidency teetering,
Mr. Yushchenko turned to Viktor F. Yanukovich, the former prime minister
whose party has been fiercely critical of the new government, to help
salvage the nomination of Yury I. Yekhanurov, which Parliament had narrowly
rejected two days ago.

"We must bury the hatchet," Mr. Yushchenko told deputies before they voted
again on the nomination of Mr. Yekhanurov, as transcribed by the British
Broadcasting Corporation. "We need to bury it deep and forget about it."

The vote - with 289 deputies in favor, compared with only 223 on Tuesday -
ended the immediate crisis that began nearly three weeks ago with public
accusations of corruption against some of Mr. Yushchenko's closest advisers.

It came at a cost politically, though, and further roiled Ukraine's
political landscape six months before new parliamentary elections.

The unlikely alliance with Mr. Yanukovich - who felt cheated out of victory
in last year's elections after street protests overturned a fraudulent vote
and swept Mr. Yushchenko to power - isolated Yulia V. Tymoshenko, who
was one of the leaders of the Orange Revolution.

Mr. Yushchenko dismissed her as prime minister two weeks ago after a
turbulent seven months that disrupted the country's economy. She remains
a popular leader, however, and her supporters reacted angrily.

Mykola V. Tomenko, who resigned as Ms. Tymoshenko's deputy prime minister
and accused Mr. Yushchenko of tolerating corruption, said he had betrayed
the Orange Revolution by allying himself with a stalwart of Leonid D.
Kuchma's presidency.

"The current authorities have closed the historical period linked to the
demands of and values of Maidan," he told Interfax, referring to Kiev's
Independence Square, where last year's protests were concentrated. "A new
period is beginning, which historians have yet to name but will definitely
not be linked to the Orange Revolution."

In exchange for backing the new prime minister, Mr. Yanukovich extracted a
written list of concessions from Mr. Yushchenko. They included promises to
end criminal investigations that Mr. Yanukovich's supporters have denounced
as political retribution and to provide his party with access to the news
media before the elections in March.

Mr. Yushchenko also agreed to diminish significantly the National Security
and Defense Council, a new agency that has been criticized as an
unconstitutional expansion of the executive branch and has been at the
center of corruption accusations.

When Mr. Yushchenko announced those changes, Parliament erupted in
applause. All 50 members of Mr. Yanukovich's party, Regions of Ukraine,
then reversed their votes, having abstained Tuesday, as did 16 others who
did not vote the first time.

Taras V. Choronovol, a deputy from Mr. Yanukovich's party, said in a
telephone interview that the agreement would weaken a presidency that had
grown unaccountable and susceptible to corruption.

"Until yesterday, he and his administration were duplicating the old regime,
grabbing and accumulating new powers and authority, powerful new functions
that, among other things, resulted in pressure on judges," he said.

Mr. Yekhanurov, a liberal economist and regional governor widely seen as a
moderate, announced that he would form a new government of ministers next
week. -30- [The Action Ukraine Report (AUR) Monitoring Service]
==============================================================
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==============================================================
4. YUSHCHENKO OVERCOMES CRISIS IN UKRAINE

By Tom Warner in Kiev, Financial Times
London, UK, Thu, September 22 2005

Ukraine's president, Viktor Yushchenko, won a crucial vote in parliament on
Thursday, confirming his moderate ally Yuri Yekhanurov as prime minister and
resolving the political crisis that had rocked his country for the past
three weeks.

Almost two-thirds of parliament supported Mr Yekhanurov, just two days after
an initial vote on his nomination failed. The successful re-vote cleared the
way for Mr Yushchenko and the new prime minister to form a cabinet with no
additional confirmation hearings.

Mr Yekhanurov said he had not decided on any of his ministers, but at least
one-third would be "pragmatic professionals" with "no connection to
politics". Mr Yekhanurov promised to announce more details next week.

Mr Yushchenko's comeback was made possible by a truce struck just before
the vote with his former arch-rival, Viktor Yanukovich, who ran against Mr
Yushchenko in last year's presidential elections and now heads Regions, the
main opposition party.

By making the truce, Mr Yushchenko was able to overcome supporters of Yulia
Tymoshenko, his populist former prime minister, who has been trying to force
him to re-appoint her since he sacked her earlier this month.

Mr Yushchenko said this month had been "perhaps the most difficult of my
life". He said he had been forced to choose "between Ukraine, or certain
colleagues of mine" - a thinly veiled reference to Ms Tymoshenko -and other
of his long-time allies who have joined her.

Stepan Khmara, a member of parliament who quit Ms Tymoshenko's faction
earlier this year, said the vote had given her "a well-deserved cold
shower".

Ms Tymoshenko's allies, however, accused Mr Yushchenko of "selling out"
and betraying the ideals of the Orange Revolution.

Mr Yushchenko and Mr Yanukovich jointly pledged to ensure fair parliamentary
elections in March and to adopt an amnesty for all people suspected of
forging votes in last year's elections, in which Mr Yanukovich was initially
declared the winner until Mr Yushchenko convinced the Supreme Court that
the voting had been rigged and a re-run was held which Mr Yushchenko won.

Thursday's vote buttressed Mr Yushchenko's position before a pivotal six-
month period in which major political reform is scheduled to take effect as
well as the March elections.

The reform, which Mr Yushchenko pledged not to block, would change the
country into a parliamentary republic, so that after the elections the new
parliament would form the government and the prime minister would be the
country's most powerful politician. -30-
[The Action Ukraine Report (AUR) Monitoring Service]
==============================================================
5. UKRAINE AVERTS A CRISES: PARLIAMENT BACKS NEW
PM NOMINEE OF PRESIDENT YUSHCHENKO

By Ron Popeski, REUTERS, Kiev, Ukraine, Thu, Sep 22, 2005

KIEV - Ukraine's parliament on Thursday approved Yuri Yekhanurov, the
candidate of President Viktor Yushchenko, as the country's new prime
minister, averting a crisis after less than a year of liberal
administration.

The middle-of-the road Yekhanurov replaced Yulia Tymoshenko, who stood
alongside the president in last year's "Orange Revolution" protests, but was
sacked in early September after months of infighting split the government in
two.

Her dismissal and allegations from both sides about the rampant corruption
Yushchenko had vowed to stamp out had pitched the ex-Soviet state into
turmoil.

In Yushchenko's second attempt this week to secure endorsement for his
candidate, Yekhanurov won the support of 289 members of the 450-seat
assembly, well above the required 226. On Tuesday, he had fallen short by
three votes.

"I am asking you for the second time in three days to vote for the stability
of Ukraine. Let each side draw conclusions from what happened, learn to keep
its word and shun betrayal," Yushchenko said in a brief address before the
vote.

"We must bury the hatchet, bury it a long way from here and, if possible,
forget the spot where it lies."

The new premier, seen as a pragmatist, must patch over rows that have made
investors turn tail, notably over privatization, and reverse a slowdown that
has reduced economic growth to its lowest rate in five years.

Yekhanurov, born in Russia's polar Yakutia region, has a track record of
loyalty, having served as Yushchenko's deputy prime minister when he
headed the government in 2000-2001.

NEW PREMIER CHALLENGES POLICIES
He has challenged the policies of the fiery Tymoshenko, pledging no more
reviews of often controversial selloffs conducted under previous post-Soviet
administrations.

Yekhanurov, 57, told reporters after winning the assembly's backing that he
would name his government line-up next week, promising "a powerful signal
for big, medium and small business and also for our partners abroad."

Experts would get key positions alongside politicians.

In his remarks to the chamber before the vote, Yushchenko addressed the
festering issue of alleged corruption in top government bodies, making a
number of concessions to critics.

To applause, he reduced the size of his secretariat, abolished the post of
top aide to the president and reduced the functions of the National Security
and Defense Council, which had strongly opposed Tymoshenko before she was
dismissed.

On the eve of the vote, Yushchenko conferred with parliamentary leaders into
the evening to secure enough votes.

Tymoshenko urged Yushchenko on Wednesday to revive the alliance that helped
catapult the president to power last year, but made it clear she wanted her
job back as premier.

In the end, only the opposition Communists and one of the parties who
opposed his presidential campaign last year refused to support Yekhanurov,
along with some of Tymoshenko's allies.

The new premier won the backing of most deputies linked to ex-prime minister
Viktor Yanukovich, who initially won last year's election but lost to
Yushchenko in a re-run ordered by the Supreme Court after weeks of protests
over vote-rigging. (Additional reporting by Pavel Polityuk) -30-
[The Action Ukraine Report (AUR) Monitoring Service]
==============================================================
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==============================================================
6. YUSHCHENKO SCORES MAJOR POLITICAL VICTORY AS PARLIAMENT
CONFIRMS HIS PRIME MINISTER NOMINEE YURY YEKHANOROV

Agence France Presse, Kiev, Ukraine, Thu, Sep 22, 2005

KIEV - Ukraine President Viktor Yushchenko scored a major political victory
as parliament confirmed his prime minister nominee, ending weeks of
political turmoil that had threatened to derail his "orange revolution."

Yury Yekhanurov, a trusted Yushchenko ally, received 289 votes, well above
the 226 votes needed for confirmation in the 450-seat Upper Rada
parliament, which two days prior had rejected his candidacy by three votes.

No deputies voted against Yekhanurov on Thursday, one abstained, and 49
did not take part in the ballot, whose result was greeted by applause in the
chamber.

Yekhanurov a 57-year-old technocrat with extensive experience in the
executive branch, replaces Yulia Tymoshenko, another "orange revolution"
leader whose government Yushchenko sacked earlier in the month amid
bitter infighting and corruption allegations.

"Today is a historic day for Ukraine," the president told reporters after
the vote. "Today will go down in Ukraine history as the day that the
political elite... demonstrated unique agreement."

Notable among parliament factions that supported Yekhanurov was Ukraine
Regions, the party led by the man Yushchenko defeated during last year's
bitter "orange revolution" presidential election campaign, Viktor
Yanukovich.

Yekhanurov, who called Thursday's vote "a process of reconciliation between
the Ukrainian elite in the west and the east," pledged to announce the
makeup of his new cabinet next week.

"It will serve as a powerful signal for our small, medium and big business,
as well as our partners abroad," Yekhanurov said.

Investors welcomed Thursday's decision that had put "an end to a dangerous
political stalemate and opened the way for quick formation of a new
government and approval of urgently needed legislation," wrote Dragon
Capital, a Kiev brokerage.

The political turmoil that engulfed Ukraine after Yushchenko fired
Tymoshenko, shattering the "orange revolution" dream team less than a year
after it assumed power, had cast doubt on whether the Ukrainian leader would
be able to make good on his campaign pledge of putting the ex-Soviet nation
on a pro-Western course.

Yushchenko assumed power after leading mass peaceful protests against a
fraudulent election and a graft-riddled former regime on promises of driving
Ukraine toward membership in the European Union and the North Atlantic
Treaty Organization (NATO).

After parliament refused to heed Yushchenko's pleas and confirm Yekhanurov
on Tuesday, the Ukrainian president huddled with political party leaders,
appealing for support, and made several concessions to the opposition to
seal Thursday's victorious vote.

Yushchenko weakened the powers of the National Security Council, whose
former chief Petro Poroshenko had been at the center of a corruption scandal
that led to the government dismissal, transferring them to the state
secretariat.

He also eliminated the post of senior presidential advisor, which was held
by Olexander Tretyakov, who also figured in the corruption scandal.
Lawmakers told reporters that in order to secure support from his election
rival Yanukovich, Yushchenko had pledged not to use the resources of the
state apparatus against the opposition ahead of next year's crucial
parliamentary election.

The Ukrainian leader also agreed to support constitutional reforms that were
adopted during the "orange revolution" standoff and that transfer many
presidential powers to parliament and prime minister, lawmakers said.
[The Action Ukraine Report (AUR) Monitoring Service]
==============================================================
7. PRESIDENT YUSHCHENKO SIGNS DEAL WITH YANUKOVYCH TO GET
PRIME MINISTER CANDIDATE THROUGH PARLIAMENT

COMMENTARY AND ANALYSIS: By Taras Kuzio
Eurasia Daily Monitor, Vol 2, Issue 177, The Jamestown Foundation,
Washington, D.C., Friday, September 23, 2005

The Ukrainian parliament confirmed Yuriy Yekhanurov on September 22 with
289 votes. His candidacy had been rejected by parliament two days earlier
when only 223 voted for him (see EDM, September 21).

Yushchenko had insufficient votes and needed to reach a compromise with
either Tymoshenko or former pro-Kuchma centrists. Tymoshenko had held
out a hand of friendship to Yushchenko after the failed first vote, calling
for them to conduct negotiations and "return to our cooperation, our
program" (Ukrayinska Pravda, September 21).

Nevertheless, members of the business wing of Yushchenko's camp refused
any dealings with Tymoshenko. Acting Foreign Minister Borys Tarasiuk,
whose Rukh faction voted on both occasions for Yekhanurov, said in
Washington on September 20 that he hoped Tymoshenko and Yushchenko
would re-unite.

This was not to be as Yushchenko opted instead to strike a deal with Viktor
Yanukovych, head of Regions of Ukraine. What tipped the voted decisively in
favor of a "yes" in the second attempt was the vote of the Regions of
Ukraine faction, the second largest in parliament.

All 50 Regions of Ukraine deputies voted in favor.

In the first vote, three Regions of Ukraine had voted against the party line
for Yekhanurov and had, ironically, been expelled from the faction a day
later.

Why did Regions of Ukraine accommodate Yushchenko in the second vote?
Regions of Ukraine had already expressed a willingness to work with
Yushchenko when they, alone of the hard-line opposition, signed the
bombastically entitled "Declaration of unity and cooperation for the sake of
Ukraine's future" after the removal of the Tymoshenko government.

Regions of Ukraine and Yekhanurov signed a ten point declaration that led
to Regions of Ukraine throwing its weight behind the vote
(partyofregions.org.ua). The declaration both ties Yushchenko's hands and
opens him up to charges of having "betrayed the Orange Revolution".

The ten points include support for constitutional reform, ending "political
repression" against the opposition, introducing an amnesty and preventing
pressure on courts. Other points outline the adoption of laws on local
government, the opposition, Cabinet of Ministers and President of Ukraine.

The government is to be based on "professionalism and the separation of
business from politics" while private property will be guaranteed. Finally,
there is a commitment to hold free elections in 2006.

Why did Yushchenko take this potentially dangerous step towards Yanukovych?

FIRST, the economy was left in crisis by the outgoing government. Economic
growth had plummeted, inflation was high and budgetary revenues were
depleted by high populist social spending.

SECOND, Yushchenko signed a decree reducing the unconstitutional additional
powers of the National Security and Defense Council and the state
secretariat. Oleksandr Tretiakov's position of first adviser and the state
secretary were abolished. Tretiakov had been accused of corruption but had
been declared innocent by the prosecutor's office.

THIRD, the unity of the hard-line opposition has been dealt a severe blow
ahead of the 2006 elections. The Social Democratic United (SDPUo) and
Regions of Ukraine parties will now enter the elections separately, rather
than in the same bloc (Ukrayinska Pravda, September 22).

The Regions of Ukraine agreement with Yushchenko shows up the shallowness
of their "opposition" stance. Regions of Ukraine had always been reluctant
oppositionists due to the desire of oligarchs who supported it to be on
friendly terms with the executive.

The political culture of the Donetsk elites also prefers to accommodate,
rather than confront, the Kyiv authorities. Yanukovych praised the agreement
as a major victory for his party (regionsofukraine.org.ua)

The reaction of the "Orange" opposition was predictable and harsh. Outgoing
First Deputy Prime Minister Mykola Tomenko described the agreement with
Regions of Ukraine as a betrayal of the Orange Revolution.

In place of Tymoshenko, Yushchenko had brought in former President Leonid
Kuchma and Yanukovych, he argued. Tomenko advised Yushchenko to replace
his Orange Revolutionary slogans of "Kuchma and Yanukovych-away!" with
"Kuchma and Yanukovych-yes!" (Ukrayinska Pravda, September 22).

The use of the phrase "political repression" in the declaration would
indicate that Yushchenko agrees with the opposition that criminal cases
introduced this year against former Kuchma officials for abuse of office,
corruption and election fraud were indeed "repression"? This, coupled with
the declarations call for an amnesty, is highly controversial.

The Committee of Voters of Ukraine (KVU), a widely respected NGO involved
in election monitoring, called upon Yushchenko to disavow his support for an
amnesty for those who committed election fraud in last year's elections
(cvu.org.ua).

The KVU fail to see how a free and fair election could be undertaken in 2006
if the same officials are in place who committed election violations in
2004?

What do these developments mean for Ukraine?

FIRST, Tymoshenko will now claim the mantle of the true representative of
the Orange Revolution in the 2006 elections. Those who believe that
Yushchenko has "betrayed" the revolution will flock to her banner.

This will be especially the case for young people (maidan.org.ua). In Kyiv,
Yushchenko's supporters have evenly divided between continued loyalty to him
(29%) and Tymoshenko (28%). 45% of Kyivites opposed the removal of the
Tymoshenko government with 41% holding a positive view (Ukrayinska Pravda,
September 22).

Yushchenko's entourage is tainted with corruption that could affect his
ratings. Three quarters of Kyivites believe the charges made by Oleksandr
Zinchenko against Yushchenko's close allies (see EDM, September 8, 9).

SECOND, the hard-line opposition is divided ahead of the 2006 elections as
Yushchenko has co-opted the entire centrist camp, other than the SDPUo.

THIRD, the former Kuchma camp can claim victory as they were the main
backers of constitutional reforms. Yushchenko will be a weakened president
from January.

The Kuchma camp and oligarchs also gain from an amnesty for election fraud
and no further re-privatizations. The organizers of the Heorhiy Gongadze
murder will be therefore never brought to trial.

FOURTH, Ukraine's relations with Russia will improve (Tymoshenko had been
unable to travel there due to a criminal case against her). Yushchenko's
reliance on centrists, especially the pro-Russian Regions of Ukraine, could
derail Ukraine's desire to be invited to join the MAP (Membership Action
Plan) process for NATO membership at the NATO-Ukraine summit in May 2006.

This has been a turbulent week in Ukrainian politics. Yushchenko abandoned
his principal ally from the 2004 presidential election, Tymoshenko, in favor
of
his principal adversary, Yanukovych.

With some six months to go before the parliamentary elections, there is
ample
time for more maneuvering and more shifting alliances. -30-
[The Action Ukraine Report (AUR) Monitoring Service]
==============================================================
8. UKRAINE PRESIDENT RESTRUCTURES HIS ADMINISTRATION

TV 5 Kanal, Kiev, in Ukrainian 0717 gmt 22 Sep 05
BBC Monitoring Service, UK, in English, Thu, Sep 22, 2005

President Viktor Yushchenko has announced that many of the powers of the
National Security and Defence Council (NSDC) will be transferred back to
the presidential secretariat, and the secretariat itself will be
substantially
reduced.

He was speaking in parliament shortly before MPs approved his
premier-designate, Yuriy Yekhanurov, by a clear majority after rejecting it
two days earlier. NSDC powers were beefed up shortly after Yushchenko's
inauguration, prompting allegations that the council had become a "parallel
government" constantly feuding with the cabinet of ministers.

Yushchenko also promised MPs that they will see "truly new faces" in his
administration. In a conciliatory speech he urged his opponents to "bury the
hatchet" and promised that there will be no political persecution in
Ukraine.

The following is the text of Yushchenko's speech carried live by Ukrainian
television TV 5 Kanal on 22 September:

Esteemed members of parliament! Esteemed representatives of the media!
This is my second appearance in this chamber in the past three days - and
my request to you is still the same. I request this chamber to vote for
stability in Ukraine.

Yesterday we had a round table with the leaders of all the parties in the
Ukrainian parliament. First of all I would like to thank every party and
every leader for the atmosphere of that meeting and for the outcome
achieved.

Yesterday we said that every side should draw conclusions from what
happened. Every side should learn how to stick to its word and not betray.
Every side should act in the interests of Ukraine.

RESTRUCTURING
This morning, I signed a number of decrees - I would like to tell you now
about several of them.

The FIRST decree is about the activity of the presidential secretariat.
Leonid Makarovych [apparently Kravchuk, the leader of the opposition
United Social Democratic Party], I would like you to hear this.

Under the decree, the secretariat shall be led by the head of the
secretariat. He will have two deputies, including one first deputy. In
connection with this the post of state secretary of Ukraine has been
abolished, as have been the posts of his two first deputies and four
deputies. [Applause in the chamber]

Also, because of the attitude to this post in this chamber, the post of
first aide to the president of Ukraine has also been abolished. [Applause]
[The post was occupied by Oleksandr Tretyakov, one of the officials
accused of corruption by former state secretary Oleksandr Zinchenko.]

The presidential secretariat will now undergo serious changes, you will see
truly new people there. It will be seriously cut in size, and its work will
be rationalized.

SECONDLY, I have signed a decree on changes to my previous decree No
208 of 8 February 2006 about the activity of the National Security and
Defence Council.

The following powers have now been transferred from the NSDC to the
presidential secretariat: making proposals on candidates for posts in
law-enforcement agencies, the armed forces and other armed formations,
where appointments are made by the president of Ukraine; submitting for the
president's consideration proposals on appointing judges, members of the
supreme council of justice and members of the supreme qualification
commission of judges; agreeing proposals on appointing heads of
law-enforcement agencies in the Autonomous Republic of Crimea, Regions,
the city of Kiev and the city of Sevastopol; agreeing draft presidential
decrees on awarding military ranks and titles.

All these powers have been returned to the presidential secretariat.
[Applause]

"BURY THE HATCHET"
And the last thing, my friends. Following the discussion yesterday with the
leaders of parliamentary factions, it was proposed to resubmit the candidacy
of Yuriy Yekhanurov for this chamber's approval. I have decided to do this
immediately. I now ask this chamber, taking into consideration the issues we
discussed yesterday - and we discussed many important issues.

FIRST, I am appealing to you, the political leaders, and I appeal to the
public and to the business circles. We need to bury the hatchet. We need to
bury it deep and forget about it. [Applause]

SECOND, it's the formation of the cabinet. If a political force wants true
stability in this country, it must make its stance clear today on the issue
of forming the cabinet and appointing Yekhanurov as prime minister.

THIRD, the budget. I am grateful for yesterday's decision [by parliament to
accept the acting cabinet's budget draft for consideration]. It was wise and
timely, and it allows us to take the budget process forward.

FOURTH, we have emphasized that it is my personal responsibility, together
with the leaders of the factions, to ensure a free and fair election in
2006. What we are doing to achieve this is make sure that no-one is
persecuted in this country for political motives.

We need to make sure that this country is ruled by law. We have agreed,
dear friends, that the election in March 2006 - I give you my word that for
the first time, the administrative resource will not be used during this
election. I give you my word that the money of budget organizations, the
money from oil, gas, transport etc will not be used in this election.

I am grateful for the agreements we reached yesterday, and I would like to
call on you once again to demonstrate your position, your courage and
wisdom. I am counting on you. Thank you. [Applause] -30-
==============================================================
9. FIVE FACTS ABOUT NEW UKRAINIAN PRIME MINISTER YEKHANUROV

Reuters, Kiev, Ukraine, Thursday, September 22, 2005

KIEV - Ukraine's parliament on Thursday approved Yuri Yekhanurov, a
longstanding ally of President Viktor Yushchenko, as the country's new prime
minister.

Herewith are some facts about Yekhanurov, who replaces Yulia Tymoshenko,
sacked by Yushchenko amid a string of scandals that shattered the team of
reformist leaders brought to power by a peaceful pro-Western revolution last
year.

[1] As opposed to the firebrand Tymoshenko, Yekhanurov is seen as a
cautious and pragmatic politician. Soon after his nomination as acting prime
minister two weeks ago he said: "There will be no reprivatization ... there
will be talks, negotiations and I think there will be settlements."

[2] As evidence of Yekhanurov's appeal to a broad range of opinion, most
deputies linked to the party of former Prime Minister Viktor Yanukovich,
Yushchenko's opponent in last year's election, backed the president's
candidate in the vote.

[3] Yekhanurov, 57, was born in Russia's freezing Yakutia region and worked
on construction projects in his early career. He worked his way up through
the government ranks in Ukraine, holding the posts of economy minister, head
of the privatization agency and deputy prime minister.

[4] Closely linked to the president, he served as deputy prime minister when
Yushchenko headed the government in 2000-2001 and ran the sensitive
Dnipropetrovsk region after last year's "Orange Revolution".

[5] Yekhanurov has disagreed with Tymoshenko on several issues, calling for
clarity and consistency in privatization and currency policy. He was
especially critical of her handling of an attempt to return to state hands a
privatized metals plant in Nikopol, where workers objected and confronted
police. -30- [The Action Ukraine Report (AUR) Monitoring Service]
==============================================================
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==============================================================
10. FRAGILE DEMOCRATIC FLOWERING IN UKRAINE
The Orange Revolution raised hopes of real democracy in Ukraine

In the third of his five-part series, Looking for Democracy,
the BBC's Robin Lustig reports from Ukraine.

By Robin Lustig, BBC News, United Kingdom, Tuesday, Sep 20, 2005

Ukraine has the feeling of a half-finished experiment these days. The heady
days of last winter's Orange Revolution did bring a flowering of freedom.
And that includes the freedom to complain - in particular, to complain that
there is not enough freedom.

But is it democracy? Well, the president is the man who won most votes, and
parliament will be up for re-election next March.

The constitution is being amended to give more power to parliament and the
prime minister. That means the president will have less power. So far, so
democratic.

'NOTHING HAS CHANGED'
But talk to the men camping on a patch of wasteland outside the parliament
building. They are the disappointed and the disaffected. They do not want
the old regime back; they just want their grievances addressed.

And they want to see the back of the corrupt local officials who have been
making their lives a misery for so many years.

The way they describe the Orange Revolution, it was no more than one
bunch of politicians taking over from another. "Where we live, out in the
provinces, far from Kiev," they told me, "nothing has changed."

"Not so," says the Ukrainian writer Andrej Kurkov. "There is a greater sense
of democratic accountability now.

"People know that if they do not like the government, they can throw it out
when they vote in next year's elections. And the politicians know that too.

"In the past, when I went round the country talking to schoolchildren, if I
asked them what their hope was for the future, they'd tell me that they
wanted to emigrate." Now, he says that has changed: there is a new
hope that they can achieve something here, in Ukraine.

OPPORTUNITY
I was reminded of a definition of democracy that I had been given by a
political scientist in California. "Democracy is a system of government
that offers people the opportunity to discover who they can be."

On that basis, Ukraine certainly seems to be more democratic now than
it was before the Orange Revolution.

But there is still some way to go. Corruption, especially at the local
level, still needs to be tackled.

Strains within the ruling coalition, which resulted in President Viktor
Yushchenko dismissing the entire government, have delayed some much-
needed economic reforms from being implemented.

And Ukraine's giant northern neighbour, Russia, is suspicious of what is
happening in Kiev. The Kremlin does not want to encourage Russians to
think they too can take to the streets in their hundreds of thousands and
force a change of regime.

WINNING SIDE
Was it a people's revolution? Natalya, one of the many students who filled
Independence Square day after freezing day last November and December,
certainly thinks so.

She waved her orange flag, wore her orange scarf - she even dyed her hair
orange - and, she tells me: "Yes, I do feel I brought democracy to my
country. We all did. It was a wonderful feeling."

But of course they did get help. Several Western pro-democracy organisations
had been active in Ukraine for months, if not years, training, equipping and
funding the various local groups that were to spearhead the revolution.

What no-one could predict was how the judges of the Supreme Court would
rule when they were asked to annul the rigged presidential election and
force a re-run.

In the event, they heard the voices from Independence Square, and,
according to political scientist Yevhen Fedchenko, they gained the courage
to rule against the regime that had appointed them.

Or perhaps they just calculated that power was about to change hands
whichever way they ruled, and they might as well be on the winning side.
Either way, the people of Ukraine now undoubtedly have more freedom
than they did a year ago.

Whether that translates into more real democracy, a system of government in
which the people rule through elected and accountable leaders who respect
the rights of citizens and follow the rule of law, well, it is probably
still a bit too soon to be sure. -30- [The Action Ukraine Report]
-------------------------------------------------------------------------------------------------------
LINK: http://news.bbc.co.uk/2/hi/europe/4184038.stm
==============================================================
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==============================================================
11. "ORANGE SUICIDE"

COMMENTARY: By Olexandr Sushko, Head of Centre
of Peace, Conversion and Foreign Policy of Ukraine
For Ukrayinska Pravda, Kyiv, Ukraine, Thu, September 22, 2005

The self-destructive split of the former team sent shock waves both through
Ukrainian society and abroad.

The leaders of peaceful revolution that was the event of the year appeared
to be incapable to split in a civilized way, when further cooperation
wouldn't be reasonable and possible.

Having chosen this scenario (or having surrendered to circumstances that
determined such scenario) both Yushchenko and Tymoshenko proved they
were immature politicians.

Just because Tymoshenko was ready to accept de-legitimation of victory of
the whole Orange coalition. No one will believe Tymoshenko's resignation
and licking out of the information about Berezovsky's taking part in
elections (his financial contribution) are merely coincidences.

Just because Yushchenko hasn't chosen the role of referee.

Instead he let himself get involved into conflict. His mentioning UESU
(Tymoshenko's former business) is one of the most unsuccessful steps he
ever made in politics.

Hopefully, Yushchenko's words, that there's no political crisis in Ukraine
and the government resignation is quite a normal phenomenon, are just
calming down the audience. In fact, Yushchenko does understand the
seriousness of the situation he (as well as the country at large) is now in.

De facto, the president is now in the situation which would have resulted in
his resignation if happened in any democratic country. Let's recall that the
reasons for impeachment of Lithuanian president Paxas were assumptions
that his pre-election campaign had been financed by some influential Russian
citizens.

So, Yushchenko saved his office just because the Eurostandards, proclaimed
at Maidan, had't been implemented in life. Will they ever become norms
regulating our life?

There's no legitimate government in the country, and president's legitimacy
has been seriously questioned. Not enough for political crisis?

Well, there's more. As to the president, we might expect his activity in the
following directions: Berezovsky's financing Yushchenko's pre-election
campaign and the case of the president's poisoning.

Law-enforcement bodies are so reluctant to investigate the case that they
give grounds for different versions and supposition. Mr. Kyselyov's comments
on ICTV will seem petty offence as compared with what this reluctance may
result in.

In this connection, it's pretty strange that security services and mass
media pay no attention to a Russian citizen, the president of Institute of
National Strategy, Stanislav Belkovsky, who has recently reinvigorated his
activity in Kyiv. That reminds another Russian spin doctor, who took an
active part in Ukrainian elections - Gleb Pavlovsky.

As know, Belkovsky and Pavlovsky are competitors in the filed of Russian
policy regarding Ukraine. But Pavlovsky is presently Putin's advisor;
Belkovsky is looking forward to post-Putin's Russian Federation.

Due to Belkovsky's loyal attitude to Yushchenko some people even consider
him "the friend of democratic Ukraine". But unlike Pavlovsky's demonstrative
"counter-revolutionary" quackery, Belkovsky's activity is more sophisticated
in Ukraine, unlike Moldova, where his institute is occupied with ideological
back-up of local separatists.

Unlike Moldova, where branch of his institute is chaired by security service
officer, suspected of many crimes, Dmitriy Soin, Ukrainian branch is run by
respectable analytic from former Yanukovych's circle, Kost Bodnarenko.

However, that doesn't change the concept of Ukrainian policy carried out
by Belkovsky.

If somebody doubts true intentions of the Institute of National Strategy
regarding Ukraine, just have a look at the project of the new Russian
Constitution, recently published by this organization. One of the zests of
this fundamental law is a factual refusal to acknowledge independence of
the neighboring post-soviet countries, introducing the term "historic
territory of Russia".

TYMOSHENKO AS A POLITICIAN
Unlike Yanukovych's apologists who encourage Russia to back up The Party
of Regions, Belkovsky offers to stake on Tymoshenko, a politician who:

a) has no own ideology, i.e. she'll choose the most suitable one to seize
the power;

b) having burnt the bridges with Yushchenko will make a coalition with
former authority to form pro-russian government, in case her premier's
office is guaranteed.

c) will undermine Yushchenko's authority to make him resign, sure with
own claims to this office.

This scenario, along with fraternal helping hand in organizing economic
crisis might be an outstanding act of discrediting the Orange Revolution
and Democratic movement in post-soviet countries in general.

If our assumptions about cooperation of the mentioned above personalities,
the scenario of undermining Yushchenko's power might come true, with
Tymoshenko as a head of new oppositionist.

What really strikes is the president's solitude. Yushchenko is all alone.
Out of the dream-team he's got Rybachuk, Tarasuyk and Lutsenko, maybe
some more.

Sure, the president himself is responsible for his solitude. He started
enlisting allies among former opponents. His solitude might be used as a
means of destruction of Orange victory and stability of state institutions
in general. [Translated by Eugene Ivantsov] -30-
--------------------------------------------------------------------------------------------------------
LINK: http://www2.pravda.com.ua/en/news/2005/9/22/4771.htm
==============================================================
12. UKRAINE'S INSTABILITY OR YUSHCHNEKO VS. TYMOSHENKO

OPINION: Peter Lavelle, RIA Novosti Political Commentator
RIA Novosti, Moscow, Russia, Wednesday, September 21, 2005

MOSCOW - President Viktor Yushchenko's failure to have his nominee
Yury Yekhanurov voted in as prime minister on Tuesday has plunged Ukraine
into another round of political turmoil and instability.

With parliamentary elections only six months away, Yushchenko now has no
choice but to openly challenge former Prime Minister Yuliya Tymoshenko and
her supporters for power if the Orange Revolution is to remain relevant.

The inability of Yekhanurov to garner enough votes in Ukraine's parliament
to become prime minister is a major blow to Yushchenko's prestige and an
indication that his political foes, particularly Tymoshenko, have already
launched their March 2006 election campaigns.

For the next six months, Yushchenko will be faced with numerous challenges
to tame what is now a rebellious parliament without alienating his core
supporters, including the West, and reaching out to former political foes.

The FIRST CHALLENGE facing Yushchenko is to deal with the transfer of
many presidential powers to parliament, including having the legislature
elect the prime minister and form a cabinet. Slated to take effect at the
start of next year, Tymoshenko and her followers are calling to have
this transfer of powers brought forward to next month.

Not only would this move help Tymoshenko solidify her power base in
parliament before the parliamentary vote, but it could also conceivably
deliver her back to the premiership before the election.

To head off Tymoshenko's bid, Yushchenko has TWO OPTIONS.

FIRST OPTION, he will have to reach out to former political foes - former
presidential candidate Viktor Yanukovych and former President Leonid
Kuchma (as well as Russian leader Vladimir Putin, indirectly). Both are
powerbrokers in the Russian-dominated east of Ukraine and Yushchenko
needs their support to avoid the regional tensions that divided the country
during last year's bitterly contested presidential elections.

SECOND OPTION, for reasons of state and political stability, Yushchenko
could dramatically backtrack on the transfer of presidential powers to
parliament. Both options are fraught with risks. If not cautious enough,
Yushchenko could alienate some of his core supporters in western Ukraine
and open himself accusations from Western countries of "creeping
authoritarianism."

The SECOND CHALLENGE is Tymoshenko's political ambitions and her
ability to spend lavishly on her campaign. Widely known to her critics as
the "gas queen" after her tenure as deputy prime minister for energy,
Tymoshenko's personal wealth is estimated at $1 billion. Not only is she
a clever political operator, but she also has the financial punch to fund
any opposition to Yushchenko.

There is an obvious, albeit very controversial, way for Yushchenko to deal
with Tymoshenko - it is dubbed the "Putin-Khodorkovsky Option." Again,
Yushchenko will have to be politically adroit to avoid the label of being
called and "authoritarian" at home and deemed a disappointment in the West.

Proving claims of corruption against Tymoshenko would not be difficult - her
insider dealings are the stuff of legend. Her attempts to "buy politics"
today are no different from what Mikhail Khodorkovsky's during the 1990s.

All Yushchenko has to do is release into the public domain a raft of
compromising information about Tymoshenko's past business dealings and
ask the prosecutors to investigate.

The obvious risk for Yushchenko if he pursued this option would be the claim
that he is using state apparatus against a political opponent. For this
option to work, Yushchenko will have to convincingly explain that he will
not allow the "privatization of politics" by any single individual, no
matter how wealthy or known the person is.

Yushchenko's THIRD CHALLENGE is the slowing economy in the wake of
Tymoshenko's short tenure as prime minister.

Falling steel prices, Tymoshenko's unpredictable and populist economic
management, and confusion surrounding the review of past privatizations have
witnessed GDP growth fall to 4% this year from last year's 12%. No
politician likes to face the electorate with a controversial agenda when the
economy is slowing.

Can Yushchenko save the Orange Revolution by reaching out to his former
political arch-enemies and declare an "oligarch war" against Tymoshenko?
There is hope to believe so.

The most important reason the Orange Revolution has floundered is the lack
of efforts to free the economy from the grip of oligarchs like Tymoshenko.

The Orange Revolution's political breakthrough was not supported by a
parallel breakthrough in the economy. This should be Yushchenko's primary
objective. He will surely encounter claims of betraying the revolution and
parroting the "authoritarianism" of Putin. If Yushchenko does not commit
himself to this course, however, even the political achievement of the
Orange Revolution will be in the balance. -30-
--------------------------------------------------------------------------------------------------------
NOTE: The opinions expressed in this article are those of the author and do
not necessarily represent the opinions of the editorial board (RIA Novosti)
LINK: http://en.rian.ru/analysis/20050921/41466800.html
==============================================================
13. "ORANGE CRUSHED"

REVIEW & OUTLOOK: The Wall Street Journal, NY, NY, Thu, Sep 22, 2005

The "Orange Revolution," a color so improbably apt, brought to life a new
Ukraine eager to shed its Soviet dross and claim its freedoms. Less than a
year later, the good vibrations are gone.

The return of politics as usual came earlier than Ukrainians might have
wanted, but in itself isn't surprising. The two heroes of Kiev's
Independence Square demonstrations, Viktor Yushchenko and Yulia
Timoshenko,have acrimoniously parted ways. Their feud came out into the
open two weeks ago when President Yushchenko fired Prime Minister
Timoshenko amid accusations of corruption and incompetence.

Ms. Timoshenko swore revenge and got it quickly. She and her allies are
helping block the president's choice to replace her -- the veteran
technocrat Yuri Yekhanurov -- from forming a new government.

A weakened president must now contend with a serious political crisis as
well as a slumping economy -- the latter partly a legacy of Ms. Timoshenko's
stint in government. Safely in opposition, she now plays spoiler.

Many people have rushed to pronounce the Orange Revolution dead.
Opponents of Ukrainian democracy -- foremost in a Kremlin visibly nervous
that this experiment might catch on in the neighborhood -- want to declare
last year's political turnover a fatal mistake. The European Union for its
part points to the troubles in Kiev to justify its preferred hands-off
approach
to Ukraine.

To these doubters, Ukrainians can respond that democracies are seldom
placid. The upheavals in the Berlin Republic this past week are a good
reminder that open, competitive politics can be messy. But, as the recently
freed peoples of the New Europe would rush to attest, it's better than the
alternative.

In Ukraine until recently, and in Germany two generations ago, and in Russia
today, that alternative is authoritarianism. Ukraine's current crisis grew
out of the Orange Revolution. It's not a betrayal of it.

A little context helps put the recent news in perspective. As in every other
peaceful turnover in Europe over the last 16 years, the pro-democracy forces
in Ukraine were a motley group united by a single objective: the overthrow
of the ancien regime.

Once President Leonid Kuchma and his cronies surrendered power in the face
of massive street demonstrations against fraudulent elections last year, the
glue that held this coalition together weakened.

The victors divided up the spoils. Mr. Yushchenko, a well-trusted but
disorganized banker from the north of the country, rewarded the charismatic
Ms. Timoshenko, a former tycoon raised in the Russian-speaking industrial
east, with the plum job atop government. The styles of the two complemented
each other during the protests, but clashed in office.

Ms. Timoshenko moved hard against former political opponents, pledging
to reverse thousands of privatizations. She had scores to settle. Mr.
Yushchenko preferred to rely on the courts and limit the scope of any
reopening of past privatizations. He was always the more cautious
politician.

In an ideal world, this marriage of convenience might have lasted longer to
reassure the populace and investors. Ukraine needs political stability to
undo the many economic mistakes of the past. Yet the country has never
proved easy to govern -- neither for Mr. Kuchma nor his successor.

The stench of corruption around the government, touching both the
presidential and prime minister's offices, was particularly galling for a
people who united last year against a rotten regime. Mr. Yushchenko could
sit back and lose his credibility, or act.

By moving to clean house now, Mr. Yushchenko gains extra time to position
his allies for next spring's parliamentary elections, which are unusually
important. Under a deal negotiated under the previous regime, the president
will cede greater powers to the legislature in the new year.

The reform was intended to weaken an overly powerful office. But the risk of
his move is obvious too. Mr. Yushchenko's inability to form a government
hurts his standing, as well as Ukraine's reform efforts. Will voters blame
him or the vengeful Ms. Timoshenko next spring?

These tactical questions would matter little in a mature democracy located
in a stable neighborhood. Ukraine is neither. For that reason, the EU might
think harder of ways to offer the Ukrainians the carrots to reform that were
held out to other eastern European countries which joined the bloc last
year.

Keeping this neighboring giant stable would seem to be in its own self
interest. At NATO and on its own, the U.S. has since the early 1990s
staunchly backed a free Ukraine, and can still play an important role in
guiding this country of nearly 50 million people into the Western fold.

Certainly, as the Brussels bureaucrats attest, Ukraine has a long way to go.
The political shenanigans on view today aren't a pretty sight. But it's well
worth remembering -- especially now -- that the big battle was won by the
Ukrainian people in last year's Orange Revolution. With some help, they
must now follow through and make democracy work. -30-
==============================================================
14. DEMOCRACY'S UNLEARNED LESSONS

COMMENTARY: By Volodymyr Pavliv
Ukrayinska Pravda, Kyiv, Ukraine, Wed, September 21, 2005

The noisy dismissal of the government amid an atmosphere of scandal and
political crisis did not have to be that way. And not only if, after a quick
inquiry, Poroshenko and Tretiakov were found to be more honest than angels,
of had Zinchenko received more access to the president in exchange for
keeping quiet.

But it could have been avoided if the Ukrainian elites had finally learned
one of the main rules of democracy - the media must be taken into account.

A week before the scandalous resignation of the chief of the president's
secretariat Oleksandr Zinchenko, direct allegations of corruption against
members of the president's entourage were made by one of Ukraine's richest
businessmen Ihor Kolomoiskyi in an interview with "Dzerkalo Tyzhnia"
("Mirror Weekly").

In the civilized world, allegations of corruption against those closest to
the head of state - made by a businessman of considerable stature in an
authoritative newspaper - would not have passed without greater resonance.

Then again, a wise government would itself be interested to see the scandal
(already ripening in the lobbies and bubbling over into public view a few
times) taking shape around its leaders turn into a "paper scandal" and not a
political crisis. This would surely be done and has been done more than once
in European countries and in the United States.

In this way, a "soft" way out of the scandal could have been realized, in so
far as the main players were suspect people, a "suspicious" businessman and
a widely-distributed weekly newspaper. One could have found a quiet way to
do what was done in an atmosphere of scandal.

A newspaper wrote it - we will respond; a businessman made an accusation -
we will look into it; those closest to the president are suspected - we will
suspend them until the circumstances are brought out into the open. This is
normal in stable democracies.

This way, the head of the secretariat, the president and the prime minister
became "heroes" of the scandal. This is extraordinary, and therefore
abnormal.

In a democracy, the media plays the role of safety valve in the system of
power. Nevertheless, Viktor Yushchenko has never understood this - not as
the head of the National Bank, not as the prime minister, not as a candidate
for president. President Yushchenko also does not understand this, and the
most recent incident is not the only evidence of this.

But when speaking today of "President Yushchenko," one speaks not only of
the persona of the president (he may not even read newspapers, but prepared
briefings), but of the so-called "president's team," or that part of it that
is responsible for the press and public opinion.

It can be said with certainty that the "reformist team" has underestimated
the importance of its relationship with the press.

This would not have happened if today's Ukrainian reform team had learned
from the experience of the reform team headed by "the father of Polish
reform" Leszek Balcerowicz.

Already in October of 1989 people from Balcerowicz's circle had formed a
group for sociological analysis, which not only researched public opinion,
but also monitored the press and maintained contact with the mass media.

These contacts were not limited to regular press conferences, but took many
forms.

FIRST, Balcerowicz's people held numerous personal meetings with various
journalists and maintained contact with them.

SECOND, several so-called "background" meetings were held with those
journalists writing about the economy.

At these meetings, Balcerowicz's people attempted to explain in an
unofficial manner the steps taken and problems faced by the reformer team.

THIRD, people from Balcerowicz's team initiated new media projects
continued to exist long after, such as the TV show "Economic Express,"
Radio "Business," or Balcerowicz's regular column in the journal "Wprost."

In this way, a group of media and journalists was cultivated that supported
the entire government of the first non-communist Prime Minister Tadeusz
Mazowiecki and defended his economic program. Therefore, according to
Boguslawa Dobek-Ostrowska, a researcher of the Polish mass media, the
great merit of Balcerowicz's staff was that they sensed the importance of
"the media's legitimization of [their] actions among a civil society that is
modernizing."

And while on the subject of Poland, it is worth mentioning another
instructive example. Recently, Viktor Yushchenko participated in a
commemoration of the 25th anniversary of the appearance of the legendary
anti-communist movement "Solidarity."

At that time, in Gdansk, he met with many of the founders of that movement,
including its leader - and the first president of post-communist Poland -
Lech Walesa.

I do not know what Yushchenko and Walesa talked about, and that's why
it's not clear whether the current Ukrainian president learned the lesson
that history taught the legendary leader of Solidarity ten years ago.

In 1990, when Lech Walesa became president of Poland, it seemed as if a
"serious and lasting" new power had arrived after decades of communist
oppression. Nevertheless, within a year, the nationalist-populist circle
around President Walesa had come into sharp conflict with the
liberal-intelligentsia circle of Prime Minister Mazowiecki.

This "war in the higher echelons" appeared afterwards to be very damaging to
both camps. In 1995 the "post-communists" came to power in Poland, a result
few people could have foreseen on the eve of the election.

Walesa himself so believed in his victory over the young post-communist
Alexander Kwasniewski that during the decisive televised debate he refused
his competitor's offer of a conciliatory handshake, saying "To you I can
only offer my foot."

Walesa lost the presidential election to Kwasniewski by a narrow margin.
Since then, Alexander Kwasniewski has been president of Poland twice and
remained the most popular politician in his country.

Walesa is also popular, but only as a "legend," and that is mostly outside
the borders of his country. In Poland itself, Walesa's attempts to run for
president or for parliament have received between 1.5% and 2.5% of the vote.

From this lesson, the president of Ukraine ought to draw the corresponding
lesson. Specifically, he must rid himself of the manner of a "messiah" or
"hero" - of the idea that for his suffering Ukrainians (and Europeans and
Americans for that matter) ought to be grateful and obedient to him the rest
of their lives - and most importantly get down to the hard work of being an
active president.

Otherwise, in four years at the latest, Viktor Yushchenko will become a
walking museum piece with a 1.5% approval level. [translated by Markian
Dobczansky] -30- [The Action Ukraine (AUR) Report Monitoring Service]
----------------------------------------------------------------------------------------------------------
LINK: http://www2.pravda.com.ua/en/news/2005/9/21/4768.htm
==============================================================
Send in a letter-to-the-editor today. Let us hear from you.
==============================================================
15. UKRAINE: NO CLEAR WINNERS FROM GOVERNMENT CRISIS

FEATURE ARTICLE: By Robert Parsons
Radio Free Europe/Radio Liberty (RFE/R)
Prague, Czech Republic, Thu, 22 September 2005

Ukraine's parliament, the Verkhovna Rada, has voted in favor of President
Viktor Yushchenko's candidate for prime minister, Yuriy Yekhanurov.

Deputies narrowly rejected Yekhanurov on 20 September, but this time gave
him a comfortable majority. Yekhanurov replaces Yuliya Tymoshenko, one of
the heroes of the Orange Revolution, who was sacked by the president earlier
this month.

Yekhanurov, a regional governor, has promised to keep big business out
of government.

Hours of talks yesterday with the political groups that had opposed
Yekhanurov in the first vote insured that the obstacles were swept away.
Viktor Yanukovych, who stood against Yushchenko in the presidential
election, said he was ready to work in the interests of a stable government:

"The forces represented in parliament are ready today to assume
responsibility for forming a government, ready to bear responsibility for
creating an efficient, responsible government, and to share that
responsibility with the president," Yanukovych said.

The political ruction of the last two weeks has set back the course of
reform in Ukraine, and revealed a country so torn by division that, before
today's televised vote, Yushchenko felt impelled to appeal yet again for
unity.

"I appeal to you as political leaders, I appeal to the civil and business
circles -- we must bury the hatchet of war, hide it far under the bench and
forget where it is," Yushchenko said.

What place he will find for Yuliya Tymoshenko, whose dismissal earlier this
month precipitated the crisis, is not yet clear. Yesterday she said that she
wanted to put aside their differences, adding this was not a time for
personal ambition.

"I think a new coalition government is an urgent, pressing issue. A
coalition government should include people who will work as professionals,
who will represent all political forces in Ukraine, because what is
happening in Ukraine now calls for unity," Tymoshenko said.

Does that mean, though, that she is ready to respond to Yushchenko's call
for reviving the "team spirit" of the Orange Revolution? Or will she turn
her attention now to winning the parliamentary elections in March?

Those ballots have more than usual significance in a region of rubber-stamp
parliaments, because they'll be followed by constitutional changes
transferring much of the president's power to parliament. The battle between
Yushchenko and Tymoshenko may merely have been postponed.

The new prime minister at last has his stamp of approval from parliament,
but there are no clear winners from Ukraine's latest crisis.

There are plenty of losers though - not least the Orange Revolution itself,
whose hopes and ideals have at times seemed conspicuously absent from
the political debate. Askold Krushelnycky is a British analyst of Ukrainian
affairs and a former RFE/RL correspondent. He is writing a book on the
Orange Revolution.

"It's all disappointed many of the Ukrainians who were avid supporters of
the Orange Revolution. It's all seemed a bit tawdry and shambolic and has
displayed greed and ambition -- the worst characteristics and these have
submerged all the tender and visionary hopes espoused by the Orange
Revolutionaries not long ago," Krushelnycky said.

Yushchenko has survived, but his political standing and authority look badly
damaged by weeks of mud-slinging. He still has to answer adequately the
accusation that exiled Russian tycoon Boris Berezovskii bankrolled his
presidential election campaign.

Tymoshenko tried to row back at the last minute, anxious no doubt not to be
held responsible for dividing the revolutionary team. But her reputation,
too, looks tarnished.

The real victims, though, are the people of Ukraine, the hundreds and
thousands who stood in freezing cold last winter to ensure that the Orange
Revolution triumphed. They will pass their verdict next year, when they vote
in the March parliamentary elections. -30- (http://www.rferl.org/)
==============================================================
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==============================================================
16. "UKRAINIANS DO NOT LIVE BY BREAD ALONE"

COMMENTARY: By Roman Kupchinsky, Former Director
Ukrainian Service of Radio Free Europe/Radio Liberty.
Moscow Times, Moscow, Russia, Wed, September 21, 2005

What are the criteria by which people determine the effectiveness of their
elected officials? There is no simple answer to this question, and often
many people rely upon opinion makers -- the press, academics and
opposition politicians among others -- to tell them if officials are good or
bad.

Anders Aslund's comment in The Moscow Times on Sept. 14, "Why T
ymoshenko's Figures Didn't Add Up," was an attempt to examine the
effectiveness of the government of former Ukrainian Prime Minister Yulia
Tymoshenko. His attempt falls way short of the mark, however, because
his methodology seems to be based on only one criterion.

Aslund's main argument against Tymoshenko's government is that "This
has been a miserable year for the Ukrainian economy. Last year, Ukraine
enjoyed economic growth of no less than 12.1 percent, but that declined
to 3.7 percent during the first seven months of 2005."

If Ukrainians were enjoying themselves so much throughout 2004, then why
did they vote President Viktor Yushchenko and his supporters into power?
Was it because they expected that economic growth would rise to 20 or 30
percent under Yushchenko? If so, why are there no mass demonstrations on
the streets today protesting the fall in industrial output?

In fact, Ukrainians, like most other people, do not live by bread alone.
Ukrainians cared more for democracy during the elections of 2004 than for
economic performance percentage points. Democracy -- along with freedom
from fear and freedom of the press, the sight of Tymoshenko appearing live
on television to defend herself, for example -- is something which
Ukrainians find very refreshing today. It is something that cannot be
measured by statisticians.

For 10 years, Ukraine suffocated under the regime of President Leonid
Kuchma, a regime which, by late 2004, was so hated and discredited that
even the 12.1 percent growth rate could not help Kuchma's hand-picked
successor, Viktor Yanukovych, get elected. Wide-scale electoral fraud and
President Vladimir Putin's political technocrats sent to help Yanukovych
also could not do the trick. Yanukovych could not get elected simply
because he was viewed as a Ukrainian version of Al Capone.

But there seem to be far too many consultants and economic prophets who
are able to judge good versus evil on the basis of only industrial
production figures. If 12.1 percent growth is fine and 3.7 percent growth is
wrong, then surely the Chinese people should be pleased to live under a
dictatorial regime. Hitler also gave the Germans bursts of economic growth:
Are we to conclude from this that he was a good ruler?

Aslund often uses the terms populism and populist when referring to the
Tymoshenko government and its policies. What do these in fact mean? One
example of implementation of populist policy is would be when the common
people are oppressed by the elite in society and the instruments of the
state are to be grasped from the self-serving elite and used for the
benefit and advancement of the people as a whole. Not a terrible concept by
any means if we recall what went on in Ukraine during the Kuchma regime and
the oligarchs in his close circle who benefited hugely from dubious
privatizations of state-owned industries.

Was it evil for Yushchenko and Tymoshenko to rally their supporters with
populist rhetoric during the Orange Revolution?

The polls showed that despite impressive economic growth, Ukrainians needed
something more -- honesty and openness -- from their elected officials.
French lawyer and revolutionary Alexandre Ledru-Rollin once said, "There go
the people. I must follow them, for I am their leader." This was his
definition of populism, and it fits the way Tymoshenko acted. But Kuchma,
Yanukovych and Putin, along with Aslund, do not buy this argument and
insist on hammering on about how good it was when factories were pumping
out widgets and people were able to buy food and vodka.

In the case of Tymoshenko, Aslund no doubt knows that her policies were set
by Yushchenko during the Orange Revolution -- as prime minister, she was
implementing his pledges. This is an important fact to keep in mind when
trying to make sense of the current divorce proceedings in Kiev. Tymoshenko
did what she and her boss promised to do. Kuchma was accused of several
crimes -- implication in the murder of journalist Heorhiy Gongadze,
corruption, cronyism, illegal wiretapping and so on -- but never populism.

Does this lack of populism make Kuchma a decent person and an efficient
manager? If we follow Aslund's logic, then the answer is most definitely
yes.

For some inexplicable reason, Aslund is troubled by the fact that the
Tymoshenko government tried to recover property stolen from the Ukrainian
people by members of the Kuchma clan.

Here again Aslund winds up on the wrong side of the fence, defending the
interests of the discredited former regime. What is illegal about taking
back property from men who stole it and then putting it back on the block?
The state has the legal right not only to take back stolen goods but also
to resell them at their market value to others. This applies not only to
Ukraine but practically everywhere.

Aslund writes: "In short, this government has been an unmitigated disaster
of socialist populism. On top of everything, it has maintained a
revolutionary discourse of vehement public attacks against individual
businessmen and politicians, including members of the government."

Who are these "businessmen and politicians" about whom Aslund writes, who
are so unjustly being attacked? They are oligarchs Viktor Pinchuk, Renat
Akhmetov, Borys Kolesnikov and a handful of others who in the past have
been accused of plundering the Ukrainian economy. The vast majority of
businesspeople in Ukraine are not under attack from the government.

Aslund further writes that, "Sensationally, Kuchma's former chief of staff,
Viktor Medvedchuk, and his Social Democratic Party are suddenly favoring
Tymoshenko, as is Ukraine's first president, Leonid Kravchuk. Curiously,
the real agitators of the Orange Revolution and some of the more
disreputable oligarchs appear to be coming together in Tymoshenko's bloc."
Aslund for some reason fails to mention that the leader of the
"disreputables," Kuchma, has come out in defense of Yushchenko and
attacked Tymoshenko, as has Putin.

Aslund's is at best a simplistic approach to Ukrainian problems. Tymoshenko
has publicly distanced herself from the Social Democratic Party and it is
pointless to try and tie her to the old gang. Honesty should have forced
Aslund also to mention what Tymoshenko replied to their offer -- that she
rejected it openly and clearly.

It might be useful to recall a passage from "On Bullshit," by Harry
Frankfurt, professor of philosophy at Princeton University: "It is
impossible for someone to lie unless he thinks he knows the truth.
Producing bullshit requires no such conviction. A person who lies is
thereby responding to the truth, and he is to that extent respectful of it.
For the bullshitter, however, all these bets are off: He is neither on the
side of the true nor on the side of the false." -30-
==============================================================
17. EU BACKS YUSHCHENKO AS UKRAINE RETURNS TO NORMAL

By Andrew Rettman, Euobserver, Brussels, Belgium, Thu, Sep 22, 2005

BRUSSELS - The EU is giving its full backing to president Viktor
Yushchenko's regime, as Ukraine slowly returns to normality after its
most serious political crisis since the Orange Revolution last year.

"We have full confidence in president Yushchenko", EU foreign affairs
spokeswoman Cristina Gallach told EUobserver on Thursday (22
September), following an EU-Ukraine meeting in New York on Wednesday.

"You will find in the EU an understanding of the tremendous difficulties
with the reform agenda in Ukraine", she added. "You can't expect to turn
around a country in six months".

Member states underlined that it is business as usual with Ukraine by
agreeing this week to send 50 EU monitors to the Ukrainian-Moldovan frontier
in December under Mr Yushchenko's plan to stabilise the neighbouring
republic.

The European Commission will select the unarmed mobile units from existing
member states' customs personnel in the next two months.

Europe's reaction comes after Mr Yushchenko sacked his government, led by
powerful prime minister Yulia Tymoshenko, over corruption allegations on 8
September and installed loyalists Oleg Rybachuk (former EU integration
minister) as head of the civil service and Yuriy Yekhanurov (former governor
of Dnipropetrovsk) as prime minister.

Ms Tymoshenko hit back on Sunday by depicting Mr Yushchenko as an oligarch
puppet, while a hostile parliament on Wednesday rejected Mr Yekhanurov's
prime ministerial nomination and announced a fraud probe into the
president's own 2004 electoral campaign.

SUDDEN BREAKTHROUGH
But with Brussels watching the country slide into chaos, things turned
around again on Thursday, when Ms Tymoshenko suddenly offered to work in
parallel with the Yushchenko camp and a second parliamentary vote confirmed
Mr Yekhanurov's nomination.

Russia, the US, France and Poland echoed the EU in publicly endorsing
president Yushchenko during the crisis, with Poland describing the mess as a
second phase in the revolutionary process while other diplomats said it was
the start of campaigning for the March 2006 parliamentary elections.

One western expert indicated that nobody outside the inner circle in Kiev
really knows what went on however, with foreign powers privately accepting
that there are no angels in Kiev and some degree of government corruption
has to be tolerated for now.

Meanwhile, the EU remains cautiously optimistic about Kiev pushing forward
reforms under its 1998 EU Partnership and Cooperation Agreement (PCA) and
its 2005 Action Plan (AP), which identifies some 70 areas for economic and
legal improvements.

"I think Mr Yushchenko knows very well what he has to do", Ms Gallach said.
"Let's get a stable government, let's get a united parliament and a prime
minister who will put reforms at the top of the agenda".

She compared his 8 September government dismissal to a 9 July move when
Mr Yushchenko sacked all traffic police in the 50 million-strong country
over corruption, leading to a period of chaos on the roads, but with
less-corrupt police emerging in its place.

Ukrainian EU ambassador Roman Shpek also pointed out that the free media
coverage of the crisis, the open criticism of the president and the defiance
of parliament would have been unthinkable in pre-Orange Revolution days.
"Ukraine will emerge stronger from this crisis", he said.

LONG ROAD AHEAD
The EU's December summit in Kiev will assess the country's progress in terms
of its WTO candidature, the possibility of easing EU visa restrictions and
the country's progress on PCA and AP goals.

But Ukrainian diplomats remain concerned over the tendency to speak about
the country in terms of neighbourhood programmes and third country
partnerships rather than as a future EU candidate.

Mr Shpek said Kiev wants to step beyond the PCA and AP structure in the next
few years into a new "enhanced agreement", that could see EU aid reach the
levels of Pre-Accession Strategy payments for the new eastern European
member states.

Ukraine currently pockets some euro 100 million a year in EU grants, while
Poland scooped over euro 1 billion a year in the run-up to accession.

For its part, the EU acknowledges that Ukraine holds special value due to
its economic potential and strategic location, but says that it is still too
early to create timetables for WTO, NATO or EU entry.

For now, the international community is waiting to see how Ukraine passes
its next big test, the March 2006 elections - where the three competing
forces of Mr Yushchenko, Ms Tymoshenko and the old pro-Soviet faction will
slug it out to see who takes charge of the fledgling democracy for the next
four years. -30- [The Action Ukraine Report (AUR) Monitoring Service]
-----------------------------------------------------------------------------------------------------
LINK: http://euobserver.com/9/19917
==============================================================
18. UNTIMELY THOUGHTS [PETER LAVELLE] IS KYIV BOUND FOR A
WEEK AT THE END OF SEPTEMBER, START OF OCTOBER
Yushchenko must break the back of economic oligarchy

Untimely Thoughts: By Peter Lavelle
The Viktor & Yulia Show - Going to Ukr, Vol 3, no 165 (389)
Moscow, Russia, Wed, September 21, 2005

MOSCOW - I love living in Russia and writing on Russia and related
issues, but I truly hate renewing my visa. I have renewed my past visas
in Warszawa, London, and Tallinn - now it will be in Kyiv.

If you're a Kyiv-based reader, please drop me a line so we can meet for
coffee on me. If you are Belarus-based, also please drop me a line. I am
more than willing to travel to the border for a meeting.

This is a perfect time to go to Kyiv. I missed the Orange Revolution (part
I) - I hope to witness its rightful maturation (part II), if only for a few
days. I'll be honest. Up until the moment Viktor Yushchenko fired the Gaz
Princess, I was indifferent to him and very skeptical of the Orange
Revolution.

Now, he is my favorite Ukrainian politician. I believe he has the right
vision for Ukraine, but he must first break the back of economic
oligarchy.

He now has the opportunity to do this. If he fails, Ukraine will need
another revolution. -30- [The Action Ukraine Report Monitoring]
---------------------------------------------------------------------------------------------
Untimely Thoughts: http://www.untimely-thoughts.com
By Peter Lavelle, plavelle@untimely-thoughts.com
==============================================================
19. PERMANENT REPRESENTATIVE OF PRESIDENT TO VERKHOVNA
RADA SERHIY SOBOLEV RELIEVED OF THE POSITION

Ukrinform, Kyiv, Ukraine, Thu, September 22, 2005

KYIV - President Viktor Yushchenko relieved Serhiy Sobolev of the position
of the President's Permanent Representative to the Verkhovna Rada.

The relevant decree was signed on Wednesday, the presidential press
service told Ukrinform.

Mr Sobolev was a member of the party "Reforms and Order" faction.
================================================================
20. REFORMS TO FORGE AHEAD AMID FEUD

INTERVIEW: Ukraine Foreign Minister Borys Tarasyuk
By David Sands, Washington Times
Washington, D.C., Wed, September 21, 2005

Ukraine will stick to its pro-Western, pro-market reform program despite an
escalating political feud between the leaders of the Orange Revolution,
acting Foreign Minister Borys Tarasyuk said in an interview yesterday at the
Ukrainian Embassy.

Mr. Tarasyuk, in Washington for talks with Vice President Dick Cheney and
senior administration and congressional officials, said the basic thrust of
Ukraine's foreign policy has not been an issue in the recent upheaval in
Kiev.

"Naturally, it is a question that has come up in all my meetings, but what
you are really seeing is a democracy working through its problems," Mr.
Tarasyuk said.

"There will be no changes in our foreign policy. We want good relations with
our major partners, with the United States, with Europe, with Russia, and we
still have a goal of joining the European Union and NATO. These policies are
not being held hostage to our internal differences."

But even as Mr. Tarasyuk was speaking, Ukraine's sharply divided parliament
rejected President Viktor Yushchenko's choice to replace as prime minister
his former Orange Revolution ally Yulia Tymoshenko.

With Mrs. Tymoshenko's faction abstaining, nominee and acting Prime Minister
Yuri Yekhanurov, an ally of the president, fell three votes short of the 226
needed in the 450-seat assembly, despite heavy lobbying from the president
against what he called "a cynical plot to destroy" his government.

Ukraine plunged into crisis and gridlock earlier this month when Mr.
Yushchenko abruptly fired the charismatic Mrs. Tymoshenko amid intense
governmental infighting. Adding to the embarrassing feud were charges of
corruption, a halting reform program and a slowing economy.

Mr. Yekhanurov remains in charge of a caretaker Cabinet, and the president's
options include seeking another parliamentary vote on the nomination.
Mr. Tarasyuk, a close ally of the president, called the upheavals in Kiev a
"catharsis" for Ukraine.

"There was a necessary self-cleaning among the government team in order
to come back to the principles of the Orange Revolution and to regain the
trust of the public," he said.

He expressed confidence that the government would be able to push through
the remaining parts of a major economic reform package strongly supported
by the Bush administration and the European Union.

"I expect that as soon as the new prime minister is appointed, the drafts
will be considered and passed" in parliament, he said.

Full approval of the reform measures is seen as critical to Ukraine's hopes
of winning U.S. and European backing for its bid to join the World Trade
Organization by the end of the year.

The foreign minister said Ukraine's longer-term hopes of joining the
European Union and NATO remain on track despite the political standoff.

The Bush administration strongly backed Mr. Yushchenko in the Orange
Revolution standoff late last year over a fraudulent election that
originally favored a pro-Moscow rival. U.S. officials said they stand by the
new government as it works through the political crisis. -30-
==============================================================
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==============================================================
21. YUSHCHENKO FINDING IT CAN BE LONELY AT TOP

COMMENTARY: By Denys Volkov and Vitaliy Milentyev
The Winnipeg Free Press, Winnipeg, Manitoba, Canada
Wednesday, September 14th, 2005

LAST week, several months after the Orange Revolution that brought him to
power, Ukrainian President Victor Yushchenko made an important move towards
political transformation -- he fired his first coalition government. Yet, he
assured the world that Ukraine will continue moving towards a more open and
democratic society.

In the last few days, some top government officials in Ukraine have been
blaming each other for the dismissal of the first government selected after
the Orange Revolution.

Even though these people stood shoulder to shoulder in the main square of
Kyiv last winter, they represented several political parties with different
ideologies. When President Yushchenko selected them to be top government
officials, they had to put behind their political differences and personal
disagreements. They had to work for the benefit of the people who risked
their lives on the streets of Ukraine last winter. But they didn't.

The former prime minister Yulia Tymoshenko and some former ministers often
disagreed on the key government decisions. For example, she and Yushchenko
argued publicly about the number of companies that should be re-privatized.
Tymoshenko was criticized by Yushchenko for imposing caps on the increasing
price of gasoline. He demanded more competition and less government
regulation to resolve the problem.

If the top government officials, including the prime minister could not work
together, the president had to change the entire government.
Many analysts were not surprised when the president fired the government. In
fact, the presidents of the United States, Poland and Russia as well as many
other European leaders have publicly supported Yushchenko's actions.

Moreover, a recent survey conducted jointly by two Ukrainian research
organizations, helps explain why the president had to react the way he did.
Over 60 per cent of the respondents stated that his government had failed to
tackle corruption, crime and inflation.

Most of the respondents were disappointed with rising prices (especially in
gasoline, meat and sugar prices), which are likely the consequences of the
attempts to manually regulate these prices. Government officials, however,
blamed monopolized markets and the worldwide increase in the price of
gasoline for economic instability.

ECONOMIC PROBLEMS
Tymoshenko also was critical of some of the president's advisors and allies,
blaming them for all the economic problems and shortfalls of her government.

The figures suggest that the inflow of foreign direct investments and
economic growth during the last months have been moderate. Gross Domestic
Product grew by only four per cent in the first six months of 2005 versus
12.7 per cent for the same period last year. Mounting inflation, which is
currently approaching 15 per cent, also adds fuel to the fire.

Multiple official visits by Yushchenko to other countries to attract foreign
investors have only brought intentions to invest, but not the actual money.
The amount of foreign investments in Ukraine was $580 million US in the
first half of the year, versus approximately $574 last year.

Does it mean Ukraine lost some the momentum it gained during the "Orange
Revolution"? The answer is no. Yushchenko won several political battles
trying to move the country towards a free-market economy.

On the western front, the World Trade Organization, the European Union and
NATO are negotiating full membership in their organizations with Ukraine.
Ukraine could join WTO as early as December 2005. Yushchenko has
announced that Ukraine is losing up to $8 billion US a year because it is
not a member of WTO.

On the eastern front, Yushchenko is willing to liberalize trade with Russia,
Belarus and Kazakhstan under the Single Economic Zone agreement which
was signed by his predecessor in 2003.

He opposes, however, ideas to create a governing body that could overrule
decisions make by Ukraine under this agreement. If such an institution is
created, Ukraine could not only face political pressure from Russia,
Belarus, or Kazakhstan, but it would also be more difficult for the country
to comply with the rules set by the WTO.

The current, sometimes poor impression conveyed by the country is party
attributable to a lack of experience and partly to the pre-election period:
the new government must prevent an economic struggle and therefore make
compromises with oligarchs. It is not easy, however, to confront powerful
clans and to get rid of corrupt structures. -30-
---------------------------------------------------------------------------------------------------
NOTE: Vitaliy Milentyev is a director of investment research with Investment
Group Sokrat in Ukraine. Denys Volkov is completing masters degree in
public administration at the University of Manitoba. They are supporters of
Yushchenko.
==============================================================
22. FORMER UKRAINIAN PRIME MINISTER TYMOSHENKO SAYS
RUSSIA'S PUTIN IS A WORTHY,EXCELLENT LEADER

Ekho Moskvy radio, Moscow, in Russian 1800 gmt 22 Sep 05
BBC Monitoring Service, UK, in English, Thu, September 22, 2005

MOSCOW [Presenter] Russia has taken a peaceful and expectant position
in respect of Ukraine, the former prime minister Yuliya Tymoshenko told
our radio station in an exclusive interview.

According to her, Russia sees that in Ukraine everything is bubbling and
is wary of stepping on any particular stone in this hot flow.

Tymoshenko added that, in her view, Russia will be orientated at
constitutional reforms and will build relations with political forces that
will come to power for a long term.

Yuliya Tymoshenko also voiced a very flattering assessment of the
President of Russia Vladimir Putin.

[Tymoshenko] You have an excellent, worthy leader of the country and I
think that the country can be proud of its president.

[Presenter] I would like to add that you can hear the exclusive interview
with Yuliya Tymoshenko in full on our channel on Saturday evening [24
September]. -30- [The Action Ukraine Report Monitoring Service]
==============================================================
23. WE WILL OVERCOME!
His death has changed Ukraine forever

EDITORIAL: Ukrayinska Pravda, Kyiv, Ukraine, Fri, Sep16, 2005

September 16, 2000 was the last time when Georgiy Gongadze was seen
alive. He was usual Georgiy that day - building plans for the future and
convincing everybody that "we will overcome them for sure".

He was right. It have finally happened. If only he knew that his death would
change Ukraine forever.

He might have bitten his thumb at those politicians, who use his name now to
earn the rating, at the former president and dishonest prosecutors, he might
have felt pity for those journalists, who have betrayed the profession.

His death has changed Ukraine forever. But that does not mean that it is
over. The killers and their customers are not sleeping well now.

However, it have turned out that 5 years are not enough to establish the
truth. The time will come, when we will know it. That is our mission, the
mission of a people who are alive. -30-
---------------------------------------------------------------------------------------------------
LINK: http://www2.pravda.com.ua/en/news/2005/9/17/4754.htm
==============================================================
24. KUCHMA AND AIDES 'ORDERED KILLING OF JOURNALIST'

Andrew Osborn in Moscow, The Independent
London, United Kingdom, Thursday, Sep 22, 2005

A high- level parliamentary commission in Ukraine has accused former
president Leonid Kuchma and close aides of masterminding the murder of the
investigative journalist Georgiy Gongadze.

Mr Gongadze's decapitated body was found in a forest outside Kiev two weeks
after he was abducted in September 2000 while investigating allegations of
corruption at the heart of Mr Kuchma's government.

Mr Gongadze, 31, co-founder of the internet newspaper Ukrainskaya Pravda,
had been beaten, strangled and burnt. Three former policemen are in custody
in connection with the murder and have apparently confessed.

The case was reopened after The Independent published leaked documents
showing police had probably been involved in the abduction. But those who
ordered his killing have not been named or prosecuted.

The parliamentary commission said it had found unanimously that Mr Kuchma
and his closest aides were behind Mr Gongadze's abduction. It said one of
those involved was Volodomyr Lytvyn, who was Mr Kuchma's chief of staff and
is the current speaker in parliament. Mr Kuchma and Mr Lytvyn deny the
allegations.

The commission said its findings were based on a recording of Mr Kuchma, Mr
Lytvyn and others discussing Mr Gongadze. Mr Kuchma is heard ordering his
subordinates to 'take care' of the journalist. The commission's findings
will be passed to prosecutors. -30- [The Action Ukraine Report]
==============================================================
25. FOR JUSTICE SAYS INT FEDERATION OF JOURNALISTS
AS PARLIAMENT REPORT FUELS ACCUSATIONS OVER GONGADZE

International Federation of Journalists (IFJ)
Brussels, Belgium, Thursday, 22 September 2005

After five years of prevarication and political hand-wringing the time has
come for justice in the case of Georgy Gongadze says the International
Federation of Journalists after a Parliamentary Commission in Kiev
investigating the kidnapping and beheading of the journalist five years ago
accused the parliament's speaker of being behind the assassination.

The speaker, Volodymyr Lytvyn, had "instigated the abduction" of
Gongadze, says the commission, whose report has been sent on to the
general prosecutor’s office.

Gongadze, an internet journalist who wrote about high-level corruption, was
kidnapped and killed in 2000. “It’s time for justice in this case and an end
to the political game-playing,” said Aidan White, IFJ General Secretary.
“Ukraine must act upon this report, ensure that all the evidence is fully
tested and make sure that those responsible are brought to trial.”

However, the IFJ fears that the parliamentary decision to wind up the
commission and the lack of response from the prosecutor’s office may
prompt a new round of delays. “Many people are rightly worried that the
public outrage over this case which helped lead to the ‘Orange Revolution’
last year, may be ignored in order to save the skin of people in high
places,” said White. “It’s vital that there are no further delays.”

Public concern over the case was one of the issues which brought the
President Viktor Yushchenko to office.

The parliamentary commission's report is based upon tapes in which voices
resembling those of Lytvyn, former president Leonid Kuchma and other
officials are heard allegedly conspiring against Gongadze. But Kuchma has
repeatedly questioned the authenticity of the tapes, secretly recorded by
his former bodyguard.

Lytvyn has dismissed the report as "a provocation aimed at diverting
attention from the real culprits" for Gongadze's death and has resisted
calls for his resignation.

Nevertheless, the parliamentary report says that the "authenticity of tapes
has been verified.”

A month after Yushchenko's inauguration in January this year, prosecutors
indicted three former policemen over Gongadze's death. A fourth suspect is
at large and being sought on an international warrant.

“There is no excuse for further delay,” said White. “We need answers as to
why the powerful people behind this plot have not been held to account.

Those in custody today are willing pawns; the people who gave the orders
and set the process in motion must be found and brought to justice, no
matter how powerful they think they are.” -30-
------------------------------------------------------------------------------------------------------------
For further information contact: +32 2 235 2207
LINK: http://www.ifj.org/default.asp?Index=3376&Language=EN
The IFJ represents over 500,000 journalists in more than 110 countries
==============================================================
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