"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 577
Mr. E. Morgan Williams, Publisher and Editor
Washington, D.C., Kyiv, Ukraine, WEDNESDAY, October 5, 2005
--------INDEX OF ARTICLES--------
"Major International News Headlines and Articles"
1. DOES MR. YUSHCHENKO REMEMBER THAT THE PRICE OF HIS
POWER DURING THE DAYS OF THE REVOLUTION
EQUALED THE PRICE OF OUR LIVES?
PERSONAL STORY: by Tetyana Coroka
Ukrains'ka Pravda, Kyiv, Ukraine, Wed, Sep 28, 2005
English translation by Heather Ferniuk for
The Action Ukraine Report (AUR), Wash, D.C. Wed, Oct 5, 2005
2. TEST IS TO RESTORE ECONOMIC POLITICAL, AND SOCIAL STABILITY
President interviewed by four Ukrainian national TV channels
INTERVIEW WITH: President of Ukraine Viktor Yushchenko
BY: UT1 journalist Andriy Shevchenko, Inter journalist Larysa
Hubina, One Plus One journalist Oles Tereshchenko and
5 Kanal journalist Yevhen Hlibovytskyy
UT1, Kiev, Ukraine, in Ukrainian 1700 gmt 4 Oct 05
BBC Monitoring Service, UK, in English, Tue, Oct 04, 2005
3. UKRAINE'S NEW PRIME MINISTER HAS WTO IN SIGHTS
INTERVIEW: with Ukraine's new Prime Minister Yuri Yekhanurov
By Tom Warner, Financial Times, London, UK, Tue, Oct 4 2005
4. UKRAINIAN CABINET RECALLS TWO WTO BILLS FROM PARLIAMENT
UNIAN news agency, Kiev, in Ukrainian 1144 gmt 3 Oct 05
BBC Monitoring Service, UK, in English, Monday, Oct 03, 2005
5. LVIV DREAMING OF MORE INVESTMENT AFTER BUSINESS FORUM
FirsTnews, Kyiv, Ukraine, Tue, October 04, 2005
6. SLOVENE COMPANIES TO SEEK OPPORTUNITIES IN UKRAINE
STA news agency, Ljubljana, in English 0820 gmt 4 Oct 05
BBC Monitoring Service, UK, in English, Tuesday, Oct 04, 2005
7. COCA-COLA COMPANY CREATES NEW DIVISION ENCOMPASSING
RUSSIA, UKRAINE AND BELARUS
The Coca-Cola system has invested over $270 million in Ukraine
The Action Ukraine Report (AUR)
Kyiv, Ukraine, Wednesday, October 5, 2005
8. WILL THE ORANGE REVOLUTION BOOST IT OUTSOURCING INDUSTRY?
EXCERPTS: From article by Ulad Radkevitch and Natasha Starkelmy
Always On, The Insiders Network, October 5, 2005
9. NESTLE UNVEILS PLAN TO INVEST 5 M. USD IN LVIV-BASED
SVITOCH CONFECTIONARY IN 2006
Valeriy Ivaskiv, Ukrinform, Kyiv, Ukraine, Monday, October 3, 2005
10. UKRAINE AND THE CHALLENGE OF NATO MEMBERSHIP
PRESENTATION: by James Sherr
Fellow, Conflict Studies Research Centre
Defence Academy of the United Kingdom [1]
PANEL: Assessing Ukraine's Prospects for Joining NATO
Ukraine's Quest for Mature Nation Statehood: Roundtable VI
Ukraine's Transition to a Stable Democracy
Ronald Reagan Building and International Trade Center
Washington, D.C., Wednesday, 28 September, 2004
The Action Ukraine Report (AUR), Number 577, Article 10
Washington, D.C., Wednesday, October 5, 2005
11. UKRAINE: AFTER THE "ORANGE REVOLUTION" POWER
RETURNS TO THE OLIGARCHS
Nothing now remains of the Orange Revolution's claims to
stand for "democracy," "liberty" and "against corruption."
NEWS & ANALYSIS: By Patrick Richter and Andy Niklaus
World Socialist Web Site
International Committee of the Forth International (ICFI)
Oak Park, Michigan, Monday, 3 October 2005
12. YET MORE UKRAINIAN FOLKLORE MATERIALS ONLINE
Natalie Kononenko, Kule Chair of Ukrainian Ethnography
University of Alberta, Edmonton, Alberta, Canada
Wednesday, October 5, 2005
13. SLAVIC DESIGNS BLEND SOVIET-ERA TRADITION WITH MODERN FLAIR
Former PM Yulia Tymoshenko's career as fashion icon may have just begun
By Nora FitzGerald, International Herald Tribune
Europe, Wednesday, October 5, 2005
14. UNICEF: MANY DISABLED CHILDREN 'ABANDONED' IN
INSTITUTIONS OF EX-COMMUNIST COUNTRIES
By Bradley S. Klapper, AP Worldstream, Tue, Oct 04, 2005
15. SYMPOSIUM FOR VISITING UKRAINIAN JOURNALISTS BY THE
NATIONAL PRESS CLUB PRESIDENT'S TASK FORCE ON
JOURNALISM IN EMERGING DEMOCRACIES
Alla Rogers, Task Force Co-Chair
National Press Club Presidents Task Force On
Task Force on Journalism in Emerging Democracies
Washington, D.C., Monday, October 3, 2005
=============================================================
1. DOES MR. YUSHCHENKO REMEMBER THAT THE PRICE OF HIS
POWER DURING THE DAYS OF THE REVOLUTION
EQUALED THE PRICE OF OUR LIVES?
PERSONAL STORY: by Tetyana Coroka
Ukrains'ka Pravda, Kyiv, Ukraine, Wed, Sep 28, 2005
English translation by Heather Ferniuk for
The Action Ukraine Report (AUR), Wash, D.C. Wed, Oct 5, 2005
Does Mr. Yushchenko remember that the price of his power during the
days of the Revolution equaled the price of our lives?
The Orange Revolution's one-year anniversary is approaching. It was an
unforgettable time that changed the Ukrainian people once and for all.
This letter is a recollection of those days through the eyes of one of our
colleagues. Its purpose is to look back into the past and to convince
ourselves that there is no turning back.
We suggest that readers share their most vivid memories and perhaps
unpublished photographs of the revolutionary times at Independence
Square.
Let us remember: we will never be the same as before, and that is why we
have a right to demand changes for the better from the Administration.
***
4 a.m. I just returned from Viktor Yushchenko's headquarters after his team
voted that the elections were false and urged everyone to go out to
Independence Square tomorrow at 9 a.m.
My husband and I are sitting in the kitchen, and I am relaying to him the
latest news. While scanning several channels for objective news, we call our
friends (who also aren't sleeping) and agree to go together tomorrow to the
nation's chief square.
We worry, argue, and scold Kuchma, our awkward lives and unlucky country.
And we make a decision-one for the two of us and for our little two-year-old
son, who is sweetly sleeping in bed, enveloped by children's dreams and
cares.
We agree that if suddenly Yanukovych should emerge victoriously in our
country, we will apply for emigration and leave this place, even if it means
going to far away Argentina.
Two specialists in their thirties with higher education will find themselves
a place in this world, and we decide that we will no longer have a homeland,
because we also won't exist to her.
***
The evening of the next day. We walk up and down a Khreshchatyk that's
barely recognizable: tents stand everywhere. They brought everything they
could: medicine, bread, tea, coffee, and something else they pulled from
their home fridge.
There are many elderly people who keep bringing and bringing "something"
to their "little grandchildren" that are keeping vigil in the tent city.
Poorly dressed old ladies pour tea from thermoses and distribute soup and
porridge from pots they brought in bazaar bags, symbols of our developed
economy. Some men, returning from work, give young boys cigars and
money, leaving themselves only metro tokens for the ride home.
We freeze, run from the Administration buildings to Independence Square,
from Independence Square to the Verkhovna Rada, warm ourselves by
drinking tea in the underpasses, rewrite lists of necessary items, and call
amongst our acquaintances: "Where are you? Is everything calm where
you are? Stand firm!"
There are an unbelievably large number of people, and this evokes an
uncommon excitement. Many passer-byers smile back. And suddenly you
feel that you're just happy to be precisely HERE and NOW.
I was not alone in having these strange feelings of being united with the
entire people, of support and good will; those who were there on
Independence Square during those days can attest to this.
We listen to Yushchenko, Tymoshenko, and all those who came with us
because we believe that they have a plan of action that each of us is ready
to sustain. Suddenly an announcement is heard that tanks are approaching
Khreshchatyk from the direction of the train station.
"They" decided to use TANKS against the people! My friends and I
chaotically begin to counsel as to what to do when the machines arrive
here.
I call home where a nanny is watching our little son. How are you holding
out there, give him the receiver, and then I fervently start almost yelling
something to him that's very important to me and-suddenly-the end.Our
nanny has all of the contact numbers of the places to call if we
unexpectedly don't return.
She begs us to be careful and flee from there where there will be a
massacre. We understand that she is very concerned for us, that our
parents and acquaintances worry.
But at the same time they take pride in us, for the feelings that WE ARE
NOT AFRAID ANYMORE are transmitted to them, to those who lived in
the Soviet Union.
They're proud that in their children, the ones they call the "lost
generation" that grew up in three countries-the Soviet Union before
reconstruction, after reconstruction and in an independent Ukraine-these
genes are preserved and that they "found voice."
***
Late at night, frozen and hungry we return homeward to the metro. Next to
us sits a sturdy army captain who eyes over the "orange" train car with
misgivings. He is prepared that either a brawl will start or that people
will nag at him with pretensions.
He takes in hand some little newspaper with ads and tries to hide behind
it from those things that are occurring in the surrounding world.
The youth don't pay attention to this: they all recite chants, enjoy
themselves, and exclaim comical poems about Yanukovych. When the
next sporting poem rolls around, a smile cracks on the soldier's face.
At first he tries to hide it behind his "little paper," but then he begins
to laugh along with everyone at the things the youth are reciting before the
whole train car. He "awakens" and sees that those around him aren't
bandits, criminals, or mercenaries.
And the people, the people are ready to protect themselves and their
truth.As he exits the train, the soldier pats one of the most active youth
on the back and says in Russian, "Way to go, eagles! Don't give up!"
***
2 a.m. We're sitting in the kitchen, or in our strategic family point. We
can't fall asleep. We discuss over and over the situation that has
developed.
We don't understand why no one from Yushchenko's team can clearly
and precisely articulate an action plan for that half of Ukraine that's
out on the streets, that's coming to Independence Square by foot,
microbuses, trains, buses, electric cars, or hitch-hiking.
We surmise that there isn't a plan of action, that probably Yushchenko
himself didn't expect such this kind of power from the people. We hope that
tomorrow still more people will come to Kyiv, the first city to come out [on
the streets] and say "NO" after the elections, that all of Western Ukraine
and all of Central Ukraine will come. And in general, every thinking person
is on our side.
My husband's company is on strike; everyone's going to Independence
Square. He'll also be there in the morning. "Andriy, and if a war begins,
will you go and fight?" I ask, seized with fear.
"I'll go. Someday our little son will grow up and ask me, "Where were you
during those days when it was necessary to defend your vote?" What will I
tell him if I stay home?"
I'm unbelievably proud that his is so decisive and brave. "I'll go with
you"- I worriedly utter my decision. "The women," he chuckles, "should raise
our sons and bake hot pastries for the army."
The next morning I chaotically attempt to get in touch with political
reviewers, correspondents, and the headquarters to offer my services as a
journalist. Every ten minutes I call my husband who's somewhere on the cold
streets of the city.
There they await the Donets'k miners, who they're bussing to insubordinate
Kyiv like cattle. Everyone understands that there could be bloodshed.
We race through Internet sites in search of the latest news, and every time
they horrify us with reports of bringing in troops, tanks, armored cars and
of dispersing the crowds with fire hoses. Our cell phone companies are at
last earning their money.
Cell users begin to pick up a signal on Khreshchatyk. My husband makes his
last call somewhere near European Square and says that they went there to
meet the Donets'k miners.
Suddenly my girlfriend calls. She works in a building on January Uprising
Street. She's almost in hysterics, "Where are you? Quick, look for your
husband! Have him flee Independence Square to some metro station and
leave here!!! It's packed with people from Donets'k there.
All of them are with clubs and in black jackets-they're awful-and they're
headed for the Ukrainian Building! There's going to be a war there now!
Don't go downtown!"
I'll never forget those moments when my fingers trembled so badly that it
took me three tries to dial my husband's number correctly. Thank God he's
alive, yes, and standing, staring at those whom Yanukovych brought in.
For the most part they're normal people, who, it's obvious, frightfully feel
like some biomass that someone's using in experiments. Yes, many of them
are drunk, but who wouldn't get drunk in their situation? You hear how "our"
people cry out, "Hurray for Donets'k!,"
"Hurray for the miners!," We love you!" and so forth. They ["our" people]
give them something to eat, a chance to get warm, and share their warm
things with them. They are ours, our own. We don't feel hatred towards them;
they-are us.
Dirty politics and corrupt hands divided the people into two camps. How
could you, Mr. Kuchma, with your "sage leadership" drive your people to
such a point where a brother could kill a brother?
How can your tongue even move now to talk about the wonderful times of
your presidency, when it was you and your "team" that drove people to
the point of civil war? Or that drove millions of Ukrainians out of the
country in a mass exodus?
Or that rendered qualified specialists useless and indentured servants in
all countries of Europe and Russia? Moreover, when we have horrendous
problems with child prostitution and extortion?!
When our nation is becoming inveterate drunkards, splitting into factions
and morally degenerating? When our far off villages look like they did after
the Black Plague, and the people, like after the genocide?
***
These brief images of difficult days for our people still haven't become an
amalgamation of undecipherable recollections in my memory.
Today those days are not so far away, yet past. I purposely did not write
about the course of events of the Revolution's official history because
everyone who lived through those difficult days has their own history, a
history that is separate from the official one, a history that they will
tell their children and grandchildren.
This history is much more important perhaps because the most modern
book with the history of Ukraine, however correct it may be, can never
alter our own personal experience.
Now when I look at what's happening with the "heroes of the revolution,"
with the "achievement of the revolution" and how everyone who wants to
look convincing and modern starts to abuse the "ideas of Independence
Square," the "principles of Independence Square" and recollections
about Independence Square in general, I fall to thinking, what was that
Independence Square for me personally?!
Then my friends, my relatives and I chose our fate and our path. We chose
the country in which we'd raise our children. We took to the streets to
stand up for truth.
We chose leaders who would be worthy to represent our people in world
society and who would become for us symbols of our new, better life. We
chose a leader, as it seemed, was worthy to be our very people's leader.
[We didn't vote for] an idol with a halo penciled in that suddenly replaced
his words "dear friends" with poking at each and everyone, belittling
phrases and superficial behavior.
[We didn't vote for] a campaign of hypocrites with exorbitant ambitions.
[We didn't vote for] corrupt fat cats.
[We didn't vote for] lying good-for-nothings.
[We didn't vote for] featureless venal bureaucrats.
My family didn't emigrate. Thank God we returned from that revolution
alive and healthy.
But, Mr. Yushchenko, remember every day that the price of your power
during the days of the revolution was equal to the price of our lives.
We were ready to die in the fight against lies and injustice, in the fight
for a better future.
Are you prepared to do the same, not for yourself, but for me, and
better yet, my little son? -30-
-------------------------------------------------------------------------------------------
NOTE: English translation by Heather Ferniuk, Washington, D.C.
for The Action Ukraine Report (AUR), Washington, D.C.
-------------------------------------------------------------------------------------------
LINK: http://www.pravda.com.ua/news/2005/9/28/33917.htm
=============================================================
2. TEST IS TO RESTORE ECONOMIC POLITICAL, AND SOCIAL STABILITY
President interviewed by four Ukrainian national TV channels
INTERVIEW WITH: President of Ukraine Viktor Yushchenko
BY: UT1 journalist Andriy Shevchenko, Inter journalist Larysa
Hubina, One Plus One journalist Oles Tereshchenko and
5 Kanal journalist Yevhen Hlibovytskyy
UT1, Kiev, Ukraine, in Ukrainian 1700 gmt 4 Oct 05
BBC Monitoring Service, UK, in English, Tue, Oct 04, 2005
Ukrainian President Viktor Yushchenko has praised the new cabinet as a
very pragmatic government which will bring political and economic stability
to Ukraine.
Interviewed by four Ukrainian national TV channels, Yushchenko expressed
scepticism about the possibility of a renewed alliance with former Prime
Minister Yuliya Tymoshenko, whom he sacked on 8 September. Speaking
of alleged corruption in his own inner circle, Yushchenko said none of the
accusations had been proven.
He promised not to block constitutional changes shifting some of his powers
to parliament and the government, but stopped short of endorsing them.
Yushchenko voiced optimism about his country's WTO entry chances.
He also expressed his resolve to celebrate the anniversary of the Orange
Revolution in public despite the split in the winning camp.
The following is the text of the interview with Yushchenko by UT1 journalist
Andriy Shevchenko, Inter journalist Larysa Hubina, One Plus One journalist
Oles Tereshchenko and 5 Kanal journalist Yevhen Hlibovytskyy carried by
Ukrainian state-owned television UT1 on 4 October; subheadings inserted
editorially:
[Interviewer] Viktor Andriyovych, first of all, we would like to thank you
for this opportunity to talk to you in such an interesting format. Indeed,
we were waiting for such a conversation for a while, a number of weeks,
while the number of questions kept growing. Therefore, we are thoroughly
prepared today.
We have representatives of four central [TV] channels - One Plus One, UT1,
Inter and 5 Kanal, thus, our audience is four times bigger too.
People are going to watch TV tonight. I hope our viewers will get answers
to the most interesting and burning questions.
[Yushchenko] At least, I can guarantee that you will get the answers to the
questions you put.
STABILITY THE TOP PRIORITY
[Interviewer] Here is the first question then, Mr President. It is about the
future. You are going to take part in the cabinet's meeting tomorrow. What
are you going to say to ministers, what are you going to say to the new
cabinet, which tasks are you going to set for them?
[Yushchenko] I would like to say the following. The most difficult test,
which not only the government but the political elite too is facing now, is
to restore economic, political and social stability.
We should probably start with political stability. Many are deeply
disappointed in the government team, which failed to reach the accord that
could have helped to form a single political force, or a single electoral
bloc, to say the least.
This triggered certain manoeuvres that sought to revise the positioning [of
the political forces] in the government. Getting ready for the
[parliamentary] election [due in March 2006], one political force offered a
more proactive stance, ignoring their colleagues' position.
In other words, I faced the fact that understanding within the team was nil,
regardless of whom you appeal to - [former] Prime Minister [Yuliya
Tymoshenko], [former] State Secretary [Oleksandr Zinchenko] or the
[former] secretary of the National Security and Defence Council of Ukraine,
[Petro Poroshenko]. There was simply no understanding.
This raised a question - was it worth repairing? Or did it require a new
principle - friends, I do respect you all, but the expectations of unity did
not come true.
PRAGMATIC CABINET
[Interviewer] Would the new team, which comprises two-thirds of the former
cabinet, accept this new principle? There have been statements that the
cabinet has undergone only a facelift, not a profound change.
[Yushchenko] I believe that this is one of the pragmatic cabinets, which, I
would say, enjoys ideal conditions for productive work. Extremely ideal
conditions. They do not bear the burden of political promises.
They do not take part in political competitions, meaning that they can be
members of political parties, but cannot be leaders of political divisions,
trying to gain political weight. All this has been put aside.
This is why I believe that the answer to the question on how to quickly
restore economic stability, which is very important, extremely important to
the nation, can be produced by this new cabinet in two-three months' time. I
believe that by the New Year we will witness this.
[Interviewer] The process of forming the new cabinet has been going on for
two weeks now. Can you reveal the names of the ministers and a deputy
prime minister, who have not been appointed yet?
[Yushchenko[ I do have the names. I do have the names, but there is also a
request from the prime minister [Yuriy Yekhanurov] and certain ministers to
do this [announce their appointments] on a certain day, as they are
completing their activities in previous positions.
[Interviewer] Where do they work now?
[Yushchenko] In various places, some of them even work outside of Ukraine.
NO PROOF OF CORRUPTION
[Interviewer] Do you still consider the individuals accused of corruption to
be your friends, as you said on 8 September [when the Tymoshenko cabinet
was sacked]?
[Yushchenko] I would like to offer a formal answer. An [investigative]
commission was created. It had worked for 10 days. The Security Service of
Ukraine [SBU] informed me in writing the day before yesterday - [changes
tack]. The prosecutor-general [Svyatoslav Piskun] has briefed me on the
matter.
The Interior Ministry has briefed me on this issue - the issue of corruption
labels. No proof whatsoever was found to support the accusations of
corruption [against Yushchenko's close allies - Petro Poroshenko, the head
of the parliamentary Our Ukraine faction, Mykola Martynenko, the former
first presidential aide, Oleksandr Tretyakov, and the former deputy prime
minister, Roman Bezsmertnyy].
[Interviewer] But five criminal cases have been opened [into the activities
of the national security council's officials].
[Yushchenko] Wait a minute, wait a minute. Friends, let's not mix things up.
Corruption accusations have been voiced. What is corruption? You take
shares, land plots or a plant and something sticks to your hands. This is
one set of issues.
And regarding this set of issues, not a single fact concerning any one of
them - Zinchenko, or Poroshenko, or Tretyakov, or Martynenko, or
Bezsmertnyy - [changes tack]. There was no proof found for a single claim.
We have turned this page over. Then we had to deal with the issue of a
position in the government. I do not want to comment on this issue, even
though I can comment on it, but prefer not to, so that we do not lose the
main line of our conversation.
[Interviewer] You have just named certain people, Viktor Andriyovych.
Speaking about your own accusations against Yuliya Tymoshenko, whom
you accused of lobbying for the interests of certain business structures.
Has any proof of these accusations been found?
[Yushchenko] The criminal investigation is under way. They dismiss the
accusations. The legal process is under way. It has to do with all issues
involving Zinchenko, Poroshenko, Tymoshenko, Martynenko and the rest.
Every statement will be looked into.
[Interviewer] Recent opinion polls show that people do not believe these
investigations will be fair. Viktor Andriyovych, how can you make the people
believe that the new government is more fair, and that not only the old
regime's corrupt activities, but violations possibly committed by the new
authorities would be investigated?
[Yushchenko] I believe there is a way to do so. You [the media] should
control this issue and make it public. If you know a fact which was
thoroughly investigated and forwarded to a court - [changes tack]. Friends,
I myself will demand that that the rule of law always take precedence in
this country.
But it is also very important not to follow on a false tip, when a beautiful
label, such as corruption, is used for political persecution, regardless of
which camp you represent - the opposition or the progovernment camp. One
should bear responsibility for what one says.
SOME REGIONAL GOVERNORS TO BE REPLACED
[Interviewer] Around six months ago, you instructed governors on how they
should work in Ukraine's regions. The time when they have to report to you
on their work is coming. There are rumours that significant changes among
the governors will take place. Are these significant changes going to
happen? In which exactly regions and when?
[Yushchenko] Changes will take place. They will happen in the regions that
failed to carry out their tasks. failed to build up trust and did not
produce effective results. This should be done based on the results of their
nine-month work.
[Interviewer] The newly-formed cabinet of Yuriy Yekhanurov is often called
your hand. Will it be possible to call a new set of governors your hand too?
[Yushchenko] I would like to call things their names. Yuriy Ivanovych
[Yekhanurov] was the first deputy prime minister in my cabinet. Tymoshenko
was a deputy prime minister in my cabinet.
No-one called them Kuchma-ists then. Neither Tymoshenko, nor Yekhanurov,
nor Yushchenko either, I do not know why. Nowadays, somebody tries to stick
labels by saying that they all are from the [old] Yushchenko team.
I praised then and value now the performance of those who belonged to my
cabinet and those who did not, including [now Finance Minister] Viktor
Mykhaylovych Pynzenyk, who did a great job then, when we had very good
cooperation with parliament.
I would like to say this. The issue of personal loyalty is not topical now,
as personal loyalty is nothing if your deeds do not speak louder than words.
[Interviewer] In other words, we are going to see the appointments of
representatives from various political forces as governors, aren't we?
[Yushchenko] Right, just like in the case of the new cabinet. Yuriy
Ivanovych's unique position was and is based on the unique principle of
forming the cabinet. This initiative -
GOVERNMENT FORMATION
[Interviewer, interrupting] But we cannot say today that the cabinet
represents various political forces. There are no representatives of the
Party of Regions [led by former Prime Minister Viktor Yanukovych] or the
Yuliya Tymoshenko Bloc.
[Another interviewer] Representatives of your party [Our Ukraine People's
Union] dominate the new cabinet.
[Yushchenko] Dear friends. When the presidential election took place
[changes tack] - the essence of an election is probably to bring a new team
to power. That is why an election is held, that is why a choice is being
made between the worse and better coalitions running in the election.
So, it would be strange if we, forming a new government, kept on two-thirds
of the previous government as a legacy. Then there is no point in holding an
election.
[Interviewer] People are simply confused what the new team is. The Yuliya
Tymoshenko Bloc was regarded as a new team. After the memorandum on
cooperation and reconciliation with the opposition was signed it was
rumoured that representatives of the Party of Regions could appear in your
team. There seems to be confusion.
[Yushchenko] I can repeat once more that there is no logic in changing any
fundamental principles of government formation just seven months before
the election. That is why there were no fundamental changes.
With all due respect for all colleagues, including the opposition, we have
achieved understanding regarding the principles of government formation.
More likely, we have achieved understanding on political relations between
the government and parliament and on the key goals of internal and foreign
policy.
For instance, is the topic of honest elections interesting for us? Yes. Is
the topic of budget policy and the 2006 budget interesting? Yes. Is every
democratic force interested in the topics of the Single Economic Space [a
proposed economic union of Russia, Ukraine, Kazakhstan and Belarus], the
European market and the WTO.
So why don't we offer hands to each other because these are our common
interests. As regard the opposition and government formation, let us give
Yuriy Ivanovych [Yekhanurov] - the person who has balanced relations with
both the opposition and the authorities - a chance to form a more or less
balanced government.
COMING ELECTION TO BRING SURPRISES
[Interviewer] The Yekhanurov government will work most of its time during
the parliamentary election campaign. Actually, it has already begun. Have
you decided whether you will take part in the election or you won't lead the
pro-presidential bloc? If you decide so, then who could lead the party? Can
Yekhanurov be the person?
[Yushchenko] I have the decision. I am not going to announce it now, but it
has already been taken. Second, I think that the next six-eight weeks will
spring many surprises on us.
When emotions subside and political parties look at the election map more
realistically, in particular our political partners, I would not rule out
reconciliation - I emphasize - within democratic forces.
[Interviewer] Will the people accused of corruption be present in the
election list? What this will depend on? I mean your close allies,
Poroshenko and Tretyakov for instance.
[Yushchenko] If the so-called corruption allegations are myths, these people
will remain in politics.
[Interviewer] Can they be among the first five or 10 on the party list?
[Yushchenko] No, these are your words. If these are not myths, then these
people will not out of politics.
WANTS TO ABOLISH MP IMMUNITY
[Interviewer] Will your ministers and governors take leave for the election
campaign or will they combine their jobs with the election campaign?
[Yushchenko] They will observe the law. They will take leave. Those who
have chosen their political affiliation will go to the field to earn public
support honestly.
[Interviewer] Do you support changes to legislation that give immunity to
local deputies?
[Yushchenko] I support abolishing immunity for all deputies.
[Interviewer] Altogether?
[Yushchenko] Altogether, regardless of their level. My idea - as another
opinion dominates political circles and parliament - my idea is to form a
commission that will formulate proposals which I will submit to the
Constitutional Court to check for compliance with the constitution.
I am convinced that this is the only way to finish the discussion that has
been on for 13 years. Is An MP or a deputy of any level a special person
or an ordinary citizen of Ukraine? I believe that they are ordinary
citizens.
RENEWED ALLIANCE WITH TYMOSHENKO UNLIKELY
[Interviewer] This question is about Yuliya Tymoshenko. Why did you allow
yourself to get involved in a war with her?
[Yushchenko] I am a realist. It is not an issue of relations between
Tymoshenko and Yushchenko. To the nation, those relations looked
somewhat bigger. They are like the ideals of Maydan [Independence
Square, heart of the Orange Revolution].
And naturally, I will be doing my best to have those ideals restored or
renewed - at least to a degree. We should be realists. One cannot enter
the same river twice.
It is impossible. I mean that it is impossible to simply come with the old
luggage, without conclusions, and say that we are doing a technical replay
because there was a false start.
This is impossible. We should talk about a new quality, about new priorities
and about new relations. If all Yuliya Volodymyrivna [Tymoshenko] seeks is
power and power, then this is her choice and I am not a partner there. We
are talking about ways to change this country.
To give the right answer to the question about how to change this country we
should most probably find a harmony of interests, which we unfortunately
failed to achieve in the last seven months, the harmony of state, corporate
and private interests.
[All interviewers asking together, words indistinct] Will Yekhanurov stay on
as prime minister after the elections?
[Yushchenko] I would say the answer to your question can be given only by
the parliamentary majority.
VOWS NOT TO OBSTRUCT POLITICAL REFORM
[Interviewer] Don't you feel a threat from Yuliya Tymoshenko, who has
radically altered her position on political reform after her dismissal and
has announced her presidential ambitions? You're not afraid of repeating
the fate of your predecessor who in this way obtained a fairly radical
opponent - and a successor?
[Yushchenko] - exclusively on the basis of state interests. You know, if you
look at political reform the way it turned out - and in the presence of
democratic journalists - to change the conception three times in 18 months,
and we applaud.
This is political reform, the nation is waiting. It is possible to live that
way. I don't want to live that way. Because this is not honest. This is not
honest for the nation. This is an adventure that was adopted under pressure.
The nation should have clear and understood approaches to reform of its key
document - the constitution. If we amend the constitution by such methods,
without discussion, then there will never be respect for the law.
[Interviewer] So you're against political reform?
[Yushchenko] And the nation will demand that the president should be the
guarantor of the constitution.
[Interviewer] Could you clarify your position on political reform?
[Yushchenko] My position on political reform is simple and logical.
Political reform should be implemented.
[Several interviewers talking simultaneously] Starting from the beginning?
In the form that exists?
[Yushchenko] Which? Lets think about it.
[Interviewer] Does this mean that you will attempt to alter the content of
political reform in some way? Or will it come into force from 1 January?
[Yushchenko] No. I give my word, friends, I give my word that I personally,
as president, will not take any destructive actions towards the progress of
the constitutional initiatives that were adopted by parliament.
I will explain why. In order that none of the 48m Ukrainian citizens should
get the impression that Yushchenko is thinking about his powers -
[Interviewer, interrupting] Will your political supporters do this for you?
[Yushchenko] And, friends, Yushchenko calls on journalists, political forces
to behave honestly in this difficult situation. I am convinced that only
such a position can lead to correct reactions, correct behaviour.
NOT DISCOURAGED BY FALLING RATING
[Interviewer] The latest poll results. You, personally, are trusted by 38
per cent of Ukrainians. More than 43 per cent do not trust you. That is, a
decline of 18 percentage points over the last two months. Does that make
you sad?
[Yushchenko] No, not sad. What the nation has gone through in the last
eight months will be great history.
[Interviewer] Why is there such deep disappointment?
[Yushchenko] This will be great history. It is possible to start from where
we started our dialogue. It is not evening. Do not rush to judge, you know,
even the situation in the government, from the point of view of a single
day. It may happen that in three months, in three weeks, you will not ask
these questions, use these words.
Today, we should assess only one thing. The process that has occurred in the
nation is a wholly positive process. You have become different. The nation
has become different. We have all become different.
ECONOMY
[Interviewer] Viktor Andriyovych, does this mean that if the cause of the
dismissal was differences within the team and mutual accusations of
corruption, then the economy was not the priority by which you judged the
effectiveness of the government's work? And is it possible that this same
problem will remain with the Yekhanurov government?
[Yushchenko] The situation where the budget was consumption based - and
that was the aim, this year. Next year, we will balance the budget.
Financing of the growth economy will grow four times more than the
consumption economy [as heard].
In this way, we want to present next year a new economic culture and a new
financial culture that will give clear answers to social and sectoral
questions. For example, the topic of Ukrainian roads. For the first time in
Ukrainian history, 6.1bn hryvnyas [1.2bn dollars] is being allocated to the
roads.
Everything that goes through the tax system, including deductions from the
sale of petrol, will be sent to this fund. We have to connect the east and
the centre, the west and the centre, the south and Kiev, Kiev, the Moscow
road, with the northern territories. These will be absolutely concrete
programmes that are economically very strongly supported by the budget.
[Interviewer] But similar programmes were announced at the beginning of
forming the previous cabinet. We held a mini-Davos here, started talking
about the flow of foreign investments to Ukraine, economic growth, social
policies. As time went by, all these declarations somehow -
[Yushchenko, interrupting] Yes, you are right. What does an investor want to
hear and what does he actually hear? That a few thousand facilities will be
subject to reprivatization? This is it, he does not believe anything else.
He is not interested.
When we are talking about, well, let's say, such an important issue of tax
pressure. A very important issue, which they have talked about for years -
high taxes, high taxation base and relations between the authorities and
businesses. We did not manage to lower taxes this year for various reasons.
I do not want to comment on this. But in order to lower the taxes the next
fiscal year, we are proposing for the fist time ever to cut the taxes on
businesses by around 5bn-6bn hryvnyas. I think this is what businesses have
been longing to hear for years.
WTO ENTRY
[Interviewer] Are we going to join the WTO together with Russia, after
Russia and before Russia does, as was planned? Especially after you
removed from the cabinet [former deputy prime minister for European
integration] Oleh Rybachuk, the only person in the cabinet who supervised
this direction? Why does the Yekhanurov cabinet recall the [WTO-related]
draft laws [from parliament] to review them?
[Yushchenko] You know that this a procedural thing. They are not recalled to
be revised. It is because the package of draft laws tabled by the previous
cabinet has to be approved by the cabinet of Yuriy Yekhanurov. Therefore,
the recall is purely technical and they will be resubmitted again soon. This
is a bureaucratic procedure, nothing more.
[Interviewer] What are the prospects? Have we made concessions to
Moscow?
[Yushchenko] Around 60 per cent of what has to be done in order to join the
WTO has been already done. I mean the laws. The key laws, politically
problematic laws, such as the copyright law and the law on tariffs, have
been passed.
This makes the WTO session in December easier for us. Ukraine remains
on track and still has a chance to become a WTO member country.
MEMORANDUM OF UNDERSTANDING WITH OPPOSITION
[Interviewer] Viktor Andriyovych, let's return to politics again. Many
people were concerned at the signing of the memorandum [on cooperation]
between you and [Yushchenko's main rival during the presidential election of
2004] Viktor Yanukovych [ahead of the repeat vote in parliament on
Yekhanurov's candidacy for the post of prime minister].
Some people called it a betrayal of Maydan ideals. Some called it a
political calculation. Some saw many benefits for the opposition in it. What
made you sign this document?
[Yushchenko] My first question is whether everyone read it. It is like
criticizing a James Bond movie - no-one watched it, but kept criticizing it
for 20 years. Then they watched it and concluded that it was worth watching.
[Interviewer] Do you mean Yanukovych?
[Yushchenko] No, the memorandum. I mean the memorandum. I am trying
to find its text.
[Interviewer] Can you please say whether it was possible to form a stable
cabinet capable of yielding results without signing the memorandum? Was it
possible to avoid it? The Party of Regions did not take part in forming the
cabinet anyway?
[Yushchenko] Friends, it was not the matter of the cabinet. I will make
copies of memorandum for you to read it, OK? There were 10 points in the
memorandum. The first one - implementation of political reform [which shifts
certain president's powers to parliament and the prime minister]. Period.
Which reform, when - there is no answer there.
[Interviewers] Viktor Andriyovych, it was not the text that outraged people,
but the fact of signing [a cooperation memorandum] between you and your
main opponent during the election, whose [rigged] victory people opposed,
taking to the streets and squares?
[Yushchenko] You should know that this memorandum is an integral part of a
more expanded memorandum, which had had been signed prior to this one,
the declaration which was signed by nine parliamentary factions at the
presidential secretariat and which provided for establishing relations among
various political forces.
Regardless of where you belong - the government or the opposition - you
have to work for the sake of the nation's highest ideals in order to find a
way out of crisis or to prevent it.
I have given an example of Germans offering a hand to each other in 1948
after three years of deep political and economic crisis on many occasions.
National ideas, not corporate ones, prevailed then.
To be prepared for the year 2006 politically, economically and having a
budget is my priority. We can survive without a budget, but things will get
worse then. Not for those who are sitting here, but for the remaining 48m
people. It can get much worse. We can survive without a declaration on a
fair election in 2006.
But I want to declare - there will be no more rigged elections in this
country. I will offer a hand to anyone who says: "I support a fair
election." If Yanukovych says in point No 10 of the memorandum: "I support
a fair election," - I say: "I am supporting you on this matter."
When we are talking about legal guarantees of ownership rights, in other
words - how to find a way out of all those reprivatization scandals, trying
to find a transparent scheme of relations between government and
businesses, when the authorities offer a hand to businesses, if we need
to settle this issue by passing relevant laws, let's do it.
Isn't it a shame for all of us to observe what's going on with the property
market? It is a shame. Let's resolve it. When we say that two political
forces can work together on this issue - [changes tack]. I believe no-one
would lose their crown.
ORANGE REVOLUTION ANNIVERSARY
[Interviewer] Viktor Andriyovych, the anniversary of the Orange Revolution
is coming soon. In the situation where there is a split in the orange camp,
where Independence Square is divided in half, do you think it is necessary
to mark this anniversary at all?
How can we celebrate it in the current situation? Are you ready to appear on
Independence Square and shake hands with Yuliya Tymoshenko?
[Yushchenko] I don't understand why you are so pessimistic in your question.
Listen friends, I would not have any conditions for appearing there. I will
be there under any circumstances. But we have all reasons to be proud.
You know, the nation has made a unique step. It has grown higher and this is
its holiday. This holiday cannot be smeared by the fact that somebody has
moved away, betrayed or broken their promises. These are small details.
And with each passing month they will become smaller and smaller.
People will receive more truth, more information on who acted how and who
thought what when they were doing this. But the revolution will remain on
their minds. The revolution brought freedom to Ukraine.
This is the day of freedom which everyone will celebrate regardless of
whether they carried the log or not [reference to Lenin and the 1917
revolution]. I am convinced that everyone will be there because nobody is
going to surrender orange ribbons.
POISONING CASE BLOCKED BY PROCEDURES
[Interviewer] There is one more question we did not mention at all. It is
very complicated. Tell us, have you found a clinic in Ukraine that could
carry out examinations regarding your poisoning? When will the results of
these examinations be attached to the case?
[Yushchenko] There is no such clinic in Ukraine.
[Interviewer] What is the way out of this situation?
[Yushchenko] I have the results of examinations carried out by four leading
clinics. I can do 20 more clinics. The number is not the problem. The
problem is the procedure needed for the court.
Our leading investigators should take a decision and give us clear logic of
how this procedure should be carried out. The problem is not the lack of
examination results. It is not a problem of diagnosis. The problem is legal
procedure.
[Interviewer] Will the procedure be changed somehow to complete this
case? What is next?
[Yushchenko] I can say that the clinics where I undergo treatment have
already moved to the genetic level of the problem. It was linked to the
newest research into dioxin poisoning. Unfortunately, dioxin is used very
seldom to poison somebody. Or fortunately.
[Interviewer] What do doctors say about your health?
[Yushchenko] On the one hand, I am progressing very well. This is
reassuring. I mean the general condition. But treatment takes quite a lot of
my time. On the other hand, I am an ordinary man and I do not want to wake
up with a face like this.
But I have to convince myself that it will be like this tomorrow and the day
after. And only later will it change. This is difficult psychologically - I
am telling you frankly - because I am not used to it. And millions of people
are not used to this face.
But I find internal strength and, looking at the storms and volcanoes in
Ukrainian politics - I am telling you frankly - I feel proud that such
changes were made in Ukraine in the last two-three weeks. You know, I
saw people whose opinion is very important applauding these changes.
[Interviewer] Viktor Andriyovych, we would like to thank you for the
conversation. It was really interesting. I hope the first attempt will turn
out good and will not be the only one and we will meet more often.
[Yushchenko] I would like to thank you and to thank those who will watch us.
Our conversation was necessary. I am convinced that we should do this
regularly. The more people know about the processes inside the authorities
and in Ukraine the more objectively they will judge what is happening in
Ukraine and where it is moving.
I am confident that we are living in unique times. I think many Ukrainians
dreamed about this time. It is not tragic. I am sure life is full of
beautiful changes many nations would envy. Good luck to you.
[Interviewers] Thank you. -30- [The Action Ukraine Report]
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3. UKRAINE'S NEW PRIME MINISTER HAS WTO IN SIGHTS
INTERVIEW: with Ukraine's new Prime Minister Yuri Yekhanurov
By Tom Warner, Financial Times, London, UK, Tue, Oct 4 2005
Yuri Yekhanurov, Ukraine's new prime minister, pledged on Tuesday to carry
through the auction of the country's flagship steel mill and revive liberal
reforms aimed at getting the country into the World Trade Organisation.
In an interview with the Financial Times ahead of a visit to the European
Commission this week, Mr Yekhanurov, who faces elections next March,
spelled out an agenda that closely reflects the priorities of Viktor
Yushchenko, Ukraine's president and the leader of last year's Orange
Revolution.
Political analysts believe Mr Yushchenko's administration has fallen short
so far of its promise to shake off post-Soviet habits that characterised the
term of his predecessor. The transition has been derailed by political
infighting, which led to Mr Yushchenko firing Yulia Tymoshenko, his first
prime minister, and her entire cabinet on September 8.
Mr Yushchenko's Our Ukraine party, of which Mr Yekhanurov is a member,
now faces a tough three-way race in six months with Ms Tymoshenko and
Viktor Yanukovich, his pro-Russian opponent in last year's presidential
election.
Mr Yekhanurov said his first priority was the reversal of a rapid slowdown
of economic growth. The economy grew 2.8 per cent in the first eight months
of this year, compared with 13.6 per cent in the same period a year earlier,
as a result of higher inflation and falling prices for steel, the country's
main export.
The prime minister's talks with European Union leaders are expected to focus
on trade issues, including WTO entry. The EU agreed this year to a
three-year "action plan" with Ukraine that could lead to a free trade zone
and eventually "associate membership" in the EU, but only if Ukraine joined
the WTO first.
Mr Yekhanurov said Ukraine's hopes of becoming a full EU member had not
been lessened by recent public manifestations of resistance to EU expansion,
but acknowledged that "by the time we're ready to join, the conditions will
be more difficult than they are today".
He said he was confident Ukraine would join the WTO "soon", but was not sure
it would happen at the group's summit in December in Hong Kong, as Mr
Yushchenko had aimed for.
The premier said he hoped parliament would approve on a first reading the
remaining 12 bills demanded by WTO members before they meet to review
Ukraine's bid later this month.
Mr Yekhanurov will also speak at a conference in Brussels on investing in
Ukraine, where he will seek to sway business people who have been turned
off by the economic slowdown and problems such as high tax pressure and
inflation.
Mr Yushchenko's decision to sack Ms Tymoshenko came after he stepped
back from supporting her economic policies, which he came to view as too
populist, notably over generous state spending.
Mr Yekhanurov reaffirmed recent comments that an auction of the country's
largest steel mill, Kryvorizhstal, would go ahead as planned on October 24.
There have been protests from former owners, including the son-in-law of the
former president, Leonid Kuchma, who paid $800m (Euro 660m, £440m) for
the mill last year but lost it in June when Ms Tymoshenko's cabinet
cancelled the sale.
Seven steel groups, including Mittal and Arcelor and Russia's Evraz and
Severstal, are planning to bid. The minimum price is set at $2bn.
But Mr Yekhanurov said the controversial drive to reverse privatisation
sales which took place before Mr Yushchenko came to power was "finished".
The fate of Nikopol Ferroalloy, another big metals plant whose privatisation
Ms Tymoshenko was in the process of reversing when she was sacked,
would be left to the courts to decide, he said. -30-
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4. UKRAINIAN CABINET RECALLS TWO WTO BILLS FROM PARLIAMENT
UNIAN news agency, Kiev, in Ukrainian 1144 gmt 3 Oct 05
BBC Monitoring Service, UK, in English, Monday, Oct 03, 2005
KIEV , 3 October: The cabinet today recalled two bills related to Ukraine's
entry into the WTO from parliament for fine-tuning, the chairman of the
Supreme Council [parliament], Volodymyr Lytvyn, has told a news conference.
Lytvyn said he is forced to state that energetic words about the need to
complete the process of Ukraine's WTO entry are not being put into practice.
At the same time, he welcomed the position of Prime Minister Yuriy
Yekhanurov who said that a priority task for the Cabinet of Ministers is the
approval of WTO related bills and their adaptation to Ukrainian realities.
He also agreed that the approved laws should be examined to see what
impact they have had on Ukraine and Ukrainian producers.
Asked whether he is aware of any agreements between the Ukrainian and
Russian prime ministers on a synchronized entry of the two countries into
the WTO, Lytvyn said that he knows nothing about this, but he promised to
find out.
Lytvyn also said that the two countries' entry into the WTO will be
discussed at the session of the joint commission of the Supreme Council
and [Russia's] State Duma, which will take place in Moscow shortly.
[Passage omitted: Lytvyn says the date of the session has not been
established yet.] -30- [The Action Ukraine Report Monitoring Service]
==============================================================
5. LVIV DREAMING OF MORE INVESTMENT AFTER BUSINESS FORUM
FirsTnews, Kyiv, Ukraine, Tue, October 04, 2005
Long seen as an intellectual capital of Ukraine, a beautiful and romantic
city worthy of European standards, Lviv is expressing hopes ahead of this
week's Ukraine-EU international business forum to expand the city's
business reputation and lure foreign investors to Western Ukraine.
Our Ukraine leaders in Lviv noted that "the event is a milestone because it
will make popular what is necessary not only for Kyiv, but for the regions
too. While many seem to believe the whole business life is in Kyiv."
LVIV, October 4 (Interfax-Ukraine) - One of the main tasks of the Ukraine-EU
international business forum to be held in Lviv on October 5-7 is to bring
in investment into the local economy, local governor and leader of the
regional unit of the People's Union Our Ukraine Petro Oliynyk believes.
"Using this forum, we would like to show the whole range of terms for
arrival of foreign investment in Ukraine. It will feature a press club to
be attended by over 40 embassies and consular offices. It is planned to
work in sections, round tables on business and leadership issues.
There will also be an exhibition of investment projects, real projects of
foreign and domestic investors will also be presented," he said.
Ukrainian President Viktor Yushchenko is expected to visit the forum.
According to the Our Ukraine press service, the forum will gather
participants from 11 countries, including Poland, Austria, Germany, Hungary.
It is planned to sign an interregional agreement on cross-border cooperation
between three regions of Western Ukraine and three regional units of Poland.
Oliynyk said "the event is a milestone because it will make popular what is
necessary not only for Kyiv, but for the regions too. While many seem to
believe the whole business life is in Kyiv."
He said the forum will show "alternative paths to the western market." He
said that it is "planned to present an idea of Brody oil refinery." -30-
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LINK: http://www.firstnews.com.ua/en/article.html?id=106722
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6. SLOVENE COMPANIES TO SEEK OPPORTUNITIES IN UKRAINE
STA news agency, Ljubljana, in English 0820 gmt 4 Oct 05
BBC Monitoring Service, UK, in English, Tuesday, Oct 04, 2005
LJUBLIJANA - Representatives of 32 Slovene companies are to take part in
a presentation of Slovene companies on the Ukrainian market which is to
take place from 4 to 7 October in Ukraine, the Chamber of Commerce (GZS)
said on Tuesday [4 October].
The companies, sponsored by the GZS and the Association of Slovene-
Ukrainian Friends and Businesspersons, are to be presented at a business
conference and two international fairs, Aqua-Ukraine 2005 and Lisderevmash
2005, GZS's press release reads.
There are 14 Ukrainian-Slovene joint ventures or Slovene companies in
Ukraine. In 2004, 245 Slovene exporters and 194 importers did business with
Ukraine.
Trade between the two countries has been on the rise, increasing from 10.8m
dollars in 1992 to 179.3m dollars in 2004, according to the GZS. Last year,
Slovene exports stood at 138.1m dollars and imports at 41.2m dollars.
Slovenia exported medicines, telecommunication devices and vinyl floor
coverings in 2004, the trade of which reached the highest growth in addition
to mechanical devices.
The imports from Ukraine in the same year were dominated by fuel, oils of
bituminuous minerals, and iron and steel wires and bars. -30-
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7. COCA-COLA COMPANY CREATES NEW DIVISION ENCOMPASSING
RUSSIA, UKRAINE AND BELARUS
The Coca-Cola system has invested over $270 million in Ukraine
The Action Ukraine Report (AUR)
Kyiv, Ukraine, Wednesday, October 5, 2005
KYIV - The Coca-Cola Company announced the creation of a new Division
encompassing Russia, Ukraine and Belarus, and the appointment of
Clyde Tuggle as its President, effective Jan.1, 2006. This new Division
will be headquartered in Moscow according to information distributed
by Coca-Cola.
Neville Isdell, CEO of The Coca-Cola Company said that "Over the past
several years, Russia, Ukraine and Belarus have assumed increasing
importance in The Coca-Cola Company current and future business plans.
The area's growing economy represents a significant opportunity for The
Coca-Cola Company, given its combined population of more than 200
million people and its expansive geography."
"It is a region with a vibrant nonalcoholic beverage market, where we
compete successfully and see great growth potential, as evidenced by
recent acquisition of the Multon juice business" - says Muhtar Kent,
President and COO North Asia, Eurasia and Middle East Group of The
Coca-Cola Company.
Clyde Tuggle succeeds Grant Winterton, who successfully managed Coca-
Cola's operations in Russia, Ukraine and Belarus, for the past four years.
Grant has been named vice president and region director, responsible for
the Swire, Shenmei and Zhuhai franchise territories in China.
Since 2002, Mr. Tuggle has successfully led the redirection and
restructuring of our Worldwide Public Affairs and Communications function.
He has twice held the role of executive assistant to the Chairman and Chief
Executive Officer, gaining wide exposure to all aspects of our business and
developing strong relationships with our bottling partners.
From 1998 to 2000 Tuggle worked in Coke's Central European Division,
which included Ukraine and Belarus, first as director of operations
development and deputy to the division president, and then as region
manager for Austria.
COCA-COLA SYSTEM IN UKRAINE BACKGROUND
The Coca-Cola system in Ukraine is represented by the Coca-Cola Company,
the owner of the Coca-Cola trademark and the Coca-Cola Beverages Ukraine,
producer and distributor of the products under Coca-Cola trademark.
The Coca-Cola system has invested over $270 million in Ukraine. All
Coca-Cola beverages are produced locally, at the bottling plant in the Kyiv
oblast, which is one the most modern plants in Europe.
Coca-Cola success in Ukraine is sustained through 1,500 highly qualified
employees, with 14 distribution canters in every large Ukrainian city, with
the clients' base of 60,000 outlets, and with a constantly growing drinks
range, that currently comprises 13 brands. -30-
==============================================================
8. WILL THE ORANGE REVOLUTION BOOST IT OUTSOURCING INDUSTRY?
EXCERPTS: From article by Ulad Radkevitch and Natasha Starkelmy
Always On, The Insiders Network, October 5, 2005
The impact of the choice for democracy Ukrainians made in late 2004 spreads
far beyond politics. This article elaborates on how the Orange Revolution
can help the Ukrainian IT outsourcing industry to gain momentum.
The victory of democratic presidential candidate Victor Yushchenko came as
a result of the continuous nationwide protests of millions of Ukrainians,
outraged with the forged results of the presidential elections. The voice of
the IT industry was also heard among the voices of millions.
In early December 2004, more than one-hundred Ukrainian IT companies sent
their representatives to the "Hi-Tech March" to show their support for the
democratic presidential candidate. About 3,000 IT workers marched the
streets of Ukrainian capital Kiev (Kyiv) wearing orange bands and waving
orange flags.
The participants of the march had not only the future of their country, but
the fate of the rapidly growing IT outsourcing industry at stake.
Now Ukraine has a new, more appealing global image that contributes to
turning the country into a new European business hot-spot. As Eastern
Europe emerges as an outsourcing alternative to Asia, Ukraine now has
all the chances to broaden its portion of the outsourcing pie.
"This may be just a coincidence, but it is right in the first months of 2005
we signed several long-awaited contracts with strategic customers such as
Philips and Siemens," says Kutsyy.
The country currently has over 300 outsourcing companies that export ITO
services. Analytical company MarketVisio, together with Gartner, estimated
ITO services from the Ukraine to reach $150 million in 2005, which
represents 50 percent growth in comparison to the previous year.
The current industry size is far below its potential. Among the factors that
have hampered its development in recent years are the legislation and
business climate. Ian Marriot, Vice President and Research Director at
Gartner, still calls for caution when dealing with the country, as "Ukraine
has been divorced from the international business community for a
continuous period of time."
Already, big foreign companies are rushing to explore Ukraine's pool of
talent. Flextronics, a major global electronics manufacturing services
provider, has placed around 1,500 of its 7,000-strong engineer force in the
Ukraine.
The size of the labour pool, quality of education, and the labour cost base
are all major criteria of offshore outsourcing decisions. Now Ukraine has
high scores across all these dimensions. The country's population (47
million) is the sixth-largest in Europe, and its capital Kiev is a mere
two-hour flight from major European cities such as London, Amsterdam, or
Paris.
To make the trip to Ukraine even simpler, its government has introduced a
visa-free travel for the visitors from the EU, US, and several other
countries. There is no wonder that this year the country expects to at least
double its revenues from the incoming tourism.
Indeed, Ukraine has historically been strong in education and science; there
are almost a thousand colleges and 600,000 students. The National Academy
of Sciences, whilst reduced in the course of the 1990s "brain drain,"
employs almost 30,000 engineers and researchers.
Today the Academy supports 170 scientific research institutes, including the
internationally-renowned Glushkov Institute of Cybernetics, and eight
techno-parks which address the challenges of innovation.
Since the Orange Revolution, the new government has demonstrated its intent
to transform the country. Despite a Ukrainian economy heavily dependent on
Russian oil and gas, Yushchenko is firm in his commitment to develop strong
ties with the West. At the summit of NATO foreign ministers in Vilnius,
Lithuania in April 2005, Ukraine was invited to begin an intensified
dialogue on membership aiming to enter NATO in 2008-2009.
It is also expected to enter the World Trade Organization by the end of
2005, and looks set for eventual membership in the EU.
On the opposite side of the news spectrum, the country's political and
economic environment is far from stable. The fall out between President
Yushchenko and his Prime Minister Julia Timoshenko led the President to
dismiss the Cabinet in September, which posed a question mark over the
political stability in the country in the face of parliamentary elections
that will take place in spring 2006.
But even if the government succeeds in sustaining stability and economic
reforms, there are other factors crucial for the establishment of the solid
outsourcing expertise in the country.
Marriot asserts, "Once the large captive operations are established in
Ukraine, it will raise its profile. This will increase the skill level and
allow people to move into the IT industry more easily. It would have a
knock-on effect on existing providers. Ukraine needs to have a strong value
proposition, the right focus on skills, and the right type of organisations
and marketing."
The outsourcing industry is already raising its profile by organising the
country's second Ukrainian Outsourcing Forum on the 29-30th of November,
2005. For entrepreneurs, reaping the benefits of the Orange Revolution is
just a question of time. -30- [The Action Ukraine Report]
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9. NESTLE UNVEILS PLAN TO INVEST 5 M. USD IN LVIV-BASED
SVITOCH CONFECTIONARY IN 2006
Valeriy Ivaskiv, Ukrinform, Kyiv, Ukraine, Monday, October 3, 2005
KYIV - The Nestle company has announced its intention to invest 5 M.
USD in the Lviv-based Svitoch confectionary in 2006.
Nestle has already invested around 50 M. USD in the Svitoch. Nestle
is one of the largest food companies in the world. -30-
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10. UKRAINE AND THE CHALLENGE OF NATO MEMBERSHIP
PRESENTATION: by James Sherr
Fellow, Conflict Studies Research Centre
Defence Academy of the United Kingdom [1]
PANEL: Assessing Ukraine's Prospects for Joining NATO
Ukraine's Quest for Mature Nation Statehood: Roundtable VI
Ukraine's Transition to a Stable Democracy
Ronald Reagan Building and International Trade Center
Washington, D.C., Wednesday, 28 September, 2004
The Action Ukraine Report (AUR), Number 577, Article 10
Washington, D.C., Wednesday, October 5, 2005
Ukraine's membership of NATO will have a profound geopolitical significance.
But Ukraine's accession to NATO will not be based primarily on geopolitics.
It will be based on the view that each ally has about Ukraine: about the
relationship between its state and society, about the capacity of its
institutions, the strength of its democracy, the health of its economy and,
of course, the character and quality of its armed forces, security sector
and bodies of law enforcement.
The emphasis that NATO places on democracy, economy and society-an
emphasis that is immediate and clear in the NATO-Ukraine Action Plan
and Annual Target Plans-is not platitudinous.
Without public trust and economic resources, Ukraine will not have armed
forces, security services, border services, customs, law enforcement and
police that provide security.
Instead, these forces will be a source of insecurity for citizens, for the
country as a whole and for neighbours. Remember the Soviet curse: 'may
you live on your salary'.
Most of those who work inside Ukraine's force structures do not live on
their salaries, and today they cannot. If the militsioner is paid a wage
inconsistent with life, he will cheat rather than die.
If the state cannot fund the defence and security sector, somebody else will
fund it, and the forces themselves will become entrepreneurial with the
skills they have at their disposal.
If these forces are to be funded properly by the state, there must be a
proper state budget. If there is to be a proper state budget, there must be
real growth in the legal economy and there must be a taxation system that
makes the legal economy more attractive than the illegal one.
But if the issue were simply money, the issue would be relatively simple.
Unfortunately, it is very difficult, because 14 years after Ukraine declared
its independence from the USSR, there is still a disjunction between
existing capabilities and pressing needs, between habits of mind and
aspirations, between the culture of power and the culture of democracy.
If the armed forces, security services or police are focused on the wrong
goals, if they are commanded by the wrong people, if they work in the
wrong way, then more money will simply produce more problems.
So NATO is concerned about, indeed preoccupied with, systemic change.
And systemic change will be impossible without national coordination.
In the defence and security sector, the institution established by the
Constitution to provide national coordination is the National Security and
Defence Council (RNBO).
But it is no secret that in the past eight months, coordination has suffered
(indeed, were it not for Serhiy Pyrozhkov, some of his colleagues and their
hard working staffs, it might have been paralysed). And it is no accident
that this decline in the RBNO's effectiveness coincided with an increase in
its powers.
It is evident that many people still do not understand the difference
between coordination and control. The RNBO is designed to be the rudder
of a defence and security system, the stabiliser that ensure that the
country's force structures pull in the same direction. This is very
different from intrusion into departmental minutiae and interference
in the business of ministers.
In this trying and complex endeavour, it is essential to work out a division
of labour, and the RNBO must respect this division of labour as much as any
other institution. Ukraine, moreover, needs depoliticised force structures.
The RNBO's job is to insulate the force structures from political pressure.
It should not create it.
At ministerial level, the imperative is to develop-and indeed
implement-programmes designed to increase professionalism and capacity.
The institution most advanced in this enterprise is the core institution,
the Ministry of Defence.
The Minister, Anatoliy Grytsenko, is both a radical reformer and a thorough
professional. He has an acute intellect, an open mind, a strategic focus
and a systematic approach. He has also had the good sense to amend
many of the programmes he inherited rather than tear them up.
This makes extremely good sense in the Ukrainian context, where one of the
greatest ills is the tendency of each new minister to dismantle everything
that his predecessor has done. But even Grytsenko is finding it difficult
to manage and encourage experienced professionals who are already in
place. He needs them.
Yet many are products of a sovietised working culture that punishes
initiative. Why should trained professionals struggle do constructive and
creative work when, by doing so, they only risk exposing themselves to
antagonism or dismissal by the next group that comes to power?
So long as that expectation survives, they will do what Soviet bureaucrats
do best: temporise, circumvent or even sabotage attempts to change the
status quo. Changing this working culture and its internal incentives will
not be easy. It will be more difficult if, after March 2006, this minister
is replaced by another.
I believe that NATO is impressed by the quality and direction of change in
the Ministry of Defence. But it has not lost interest in three key
questions.
FIRST, will this minister and others receive active and public high level
support, or will the country's highest authorities keep the door open to
intriguers lobbying behind the backs of their superiors?
SECOND, will the defence budget finally match the reform effort? At the
moment, there is no compelling need to increase the budget. But once the
process is truly underway-certainly in two years time-steady, staged
increases in budget allocations-allocations, not just authorisations-will be
essential. The time for planning tomorrow's allocations is today.
THIRD, will oversight mechanisms be created-executive and parliamentary,
opens and effective ones-to ensure that allocations (for housing,
training, equipment and maintenance) are spent as they should be?
When it comes to the rest of the security sector, the climate of scepticism
that prevails in NATO countries has not yet been overcome. Up to now,
Ukraine's Minister of Internal Affairs, Yuriy Lutsenko, has earned a
reputation as a committed democrat.
He has also demonstrated a determination to end the reign of corruption in
the Ministry of Interior (MVS). But three questions need to be posed:
FIRST, are his goals realistic? It has not proved possible to eliminate
corruption in American, British or Belgian police forces, and there is no
reason to believe it will be possible to eliminate corruption in Ukrainian
police forces either.
The realistic and fundamental goal must be to create a state of affairs
where corruption is a matter of choice rather than a necessity of life,
where it is possible both to live and live decently. So long as conditions
make corruption unavoidable, the corruption eliminated today will return
tomorrow.
SECOND, does the Minister know how to escape from this cycle? He has
secured 5,000 resignations, he has dismissed 2,000 others, and 400
officials and officers of the MVS are under judicial investigation.
But does the Minister have a programme in place to bring roles, structures,
capabilities, training and resources of the MVS and its numerous armed
formations into balance? Until he does, the MVS will remain an incubator of
corruption.
THIRD, if he has devised such a programme, does anybody know about it?
Until a programme exists, until it is put before the Verkhovna Rada and the
public, until it is scrutinised by experts and openly discussed, systematic
change will remain an aspiration-and Euro-Atlantic standards of
civil-democratic control will remain unfulfilled.
Equally complex difficulties beset the Security Services of Ukraine, the
SBU. The difficulties can be summed up in one word: KGB. The over-
whelming majority of younger professionals in the service have no
experience of the KGB.
But given the fact that the KGB USSR and KGB UkrSSR ceased to exist in
1991, how could it be otherwise? The question is who recruits these new
professionals, who trains them and who establishes the internal norms that
guide their work?
The issue, then, is the culture of the KGB. Should it be the case in summer
2005 that the SBU should bar an individual from a government research post
because he, as a private citizen, criticised Prime Minister Yanukovych at an
international conference in 2004?
Should the security service of a democracy be concerned about such things,
and can a country with Ukraine's pressing security problems afford to be
concerned about them?
Should people who use 'kompromat,' pressure and blackmail against
'problematic persons', or as a primary means of 'agenturnaya rabota,'
continue to play a role in that service?
Should Ukraine continue to be a blackmail state, and should the SBU
continue to be the instrument of those who wish it to remain one?
Neither you nor I need to know how many in the SBU are interested in
changing the culture of the KGB and how many are interested in preserving
it, but mechanisms need to be put in place that can answer these questions.
Neither you nor I need to know how many officials in the SBU or the Foreign
Intelligence Service view NATO's intelligence services and defence
ministries as future allies or as entities seeking to weaken and damage
Ukraine. But NATO needs to know.
The Alliance, after all, is an alliance. It asked these questions in
Poland, Hungary and Romania, and it will ask them if Ukraine decides to join
NATO.
And if the answer to these questions is 'these are our internal affairs',
NATO will say, 'very well, we look forward to good relations between Ukraine
and NATO, but Ukraine will stay outside NATO'.
The essence of the post-Cold War NATO is simple. It is not a geopolitical
instrument designed by someone to be used against someone else. It is a
community dedicated to the collective security of its members and to the
development of a culture of common security.
When, by its actions, Ukraine demonstrates the same dedication, it will have
met the criteria of membership. -30-
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[1] Disclaimer: The views expressed are the author's and not necessarily
those of NATO or the UK Ministry of Defence. James Sherr, Fellow,
Conflict Studies Research Centre, Defence Academy of the United
Kingdom; james.sherr@lincoln.ox.ac.uk.
[The Action Ukraine Report (AUR) Monitoring Service]
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11. UKRAINE: AFTER THE "ORANGE REVOLUTION" POWER
RETURNS TO THE OLIGARCHS
Nothing now remains of the Orange Revolution's claims to
stand for "democracy," "liberty" and "against corruption."
NEWS & ANALYSIS: By Patrick Richter and Andy Niklaus
World Socialist Web Site
International Committee of the Forth International (ICFI)
Oak Park, Michigan, Monday, 3 October 2005
Nine months after the so-called "Orange Revolution" in Ukraine, its two
leading figures have been plunged into mutual recriminations of corruption.
On September 8, President Victor Yushchenko sacked the government of
hiserstwhile comrade in arms, Julia Timoshenko.
Nothing now remains of the Orange Revolution's claims to stand for
"democracy," "liberty" and "against corruption."
The transfer of power at the beginning of the year-cheered on by the Western
media and substantially supported by the US-has proved nothing more than a
struggle for power within the ruling elite. For the mass of the population,
Julia Timoshenko's government meant rising inflation and rapidly sinking
living standards.
Now, step by step, the levers of power are returning to the old oligarchs
against whom the revolution was supposedly directed. Yushchenko has
reconciled himself with his opponents of yesteryear and is now following the
same foreign policy course as his predecessor Leonid Kuchma, moving closer
to Russia. He now advocates Kuchma's famous "see-saw policy," whose
pendulum has presently swung far to the east.
The narrow layer of oligarchs developed immediately after the collapse of
the Soviet Union, acquiring the lion's share of the former state
enterprises. Due to the close, historically developed ties linking Ukrainian
and Russian industry, Ukraine's foreign policy was strongly oriented towards
Russia.
The Orange Revolution was supposed to deprive the oligarchs of power
and create a new section of capitalists who orientated towards the foreign
policy of the US, so establishing a powerful geopolitical player against
Russia.
The US government has been the main loser in recent developments and
could only with difficulty hide its disappointment over the failure of last
year's intervention. In a telephone call immediately after Timoshenko's
sacking, President George W. Bush urged Yushchenko "to stick to the
principles of the movement" to which he "owed" his position. In particular,
Bush said, he should keep his promise to "have no truck with the
excesses of the past."
Condoleezza Rice declared that what is being witnessed in the ex-Soviet
republic is not unusual in the case of fledgling democracies. At worst,
these are supposed to be teething problems that can be overcome with the
right kind of political will. The Bush administration has promised that the
president can count on its "very strong support" for the building of
democracy in Ukraine.
After Timoshenko's dismissal, President Yushchenko formed a pact with Victor
Yanukovich, the man who had opposed him during the Orange Revolution, in
order that parliament could confirm the appointment of Yuri Yechanurov as
prime minister on September 22. Yechanurov's election had previously failed
by a narrow margin after Timoshenko's "Fatherland" party had voted against
him.
Yanukovich represents the interests of the Donezk oligarchs, who are headed
by Ukraine's richest man Renat Achmetov. They control significant coal
mining interests in eastern Ukraine, and maintain close relations with
Russia. After his election, Yechanurov announced that his success showed
that "the east" of the country was now reconciled with "the west," the
centre of the Orange Revolution.
Among other things, the nonaggression treaty with Yanukovich's "Party of the
Regions" means that his supporters will no longer be persecuted politically
and that there will be no further reprivatisations-i.e., the reversal of
privatisations to the detriment of the oligarchs in favour of new owners.
There was widespread indignation concerning the guarantee that there would
be no prosecutions for electoral fraud arising from last year's presidential
elections. This is what had ignited last year's protests, finally leading to
fresh elections and Yushchenko's victory.
Moreover, it was agreed that the Party of the Regions would appoint the
deputy prime minister and that Julia Timoshenko's former confidantes would
not be given any government offices. Yushchenko has thus brought back into
the government the representatives of Ukraine's two main oligarch clans-from
Dnipropetrovs'k and Donetsk-and is acting completely in the tradition of his
predecessor, Leonid Kuchma.
Yechanurov, the new prime minister, is a close trusted friend of former
president Kuchma, who served from 1994 to 2004. He acts as a contact
between Yushchenko and the Dnipropetrovs'k oligarch clan under the
leadership of Kuchma's son-in-law, Victor Pinchuk.
From 1994 to 1997, Yechanurov headed the privatisation of Ukraine's former
state enterprises. He is held responsible for many of the shady transactions
that were carried out at the time when he created a number of oligarchs.
He then became economics minister and in 1999 was appointed as deputy to
Yushchenko, who was prime minister until 2001.
After Yushchenko's ousting as prime minister he was a parliamentary deputy
in Yushchenko's party "Our Ukraine." In April this year, Yushchenko
appointed him governor of the region around the most important Ukrainian
industrial city Dnipropetrovs'k.
Why did Timoshenko have to go?
Timoshenko's sacking on September 8, after only seven months in office,
was the peak of a fierce dispute over attitudes towards the oligarchs and to
Russia. In the end, it took the form of increasingly ferocious
recriminations about corruption, which threatened to plunge the whole regime
into the abyss and inadvertently displayed the mentality of the old and new
ruling powers; the egoistic interests of the different factions of the
capitalist elite.
Policies to overcome the social disaster that confronts the majority of the
population, and promises which were cynically made during the Orange
Revolution last year, no longer receive even a passing mention.
Timoshenko had taken the first initiative this summer, accusing those in
Yushchenko's immediate circle of corruption, in a bid to stop his
rapprochement with the oligarchs and Russia. A veritable mudslinging match
ensued.
Timoshenko opened the offensive in mid-June. One of her most important
supporters, Alexandra Urchin, the head of the domestic secret service (SBU),
threatened to launch an investigation into the gas company RosUkrEnergo,
headed by a favourite of Yushchenko's, Petro Poroshenko, chief of the
National Security Council.
The accusation was that Eural Trans Gas, the organisation that had preceded
RosUkrEnergo, had lost "over 1 billion US dollars" in business transactions
between Russia's Gazprom and Ukraine's Naftohaz.
Timoshenko called RosUkrEnergo a "criminal enterprise" and warn unnamed
confidantes of Yushchenko "not to replace the old schemes of the Kuchma
government with new ones." She accused the head of RosUkrEnergo of
refusing to tell the government why the firm was "beyond the control of
cabinet ministers."
Following these pronouncements, Russian military prosecutors renewed an old
arrest warrant against Timoshenko, although Interpol had only just dropped
any further investigation of the accusations raised against her. Yushchenko
also intervened and, according to Timoshenko, banned her from further
interfering in the gas industry.
At the beginning of August, the SBU searched the business premises of
Naftohaz and initiated criminal proceedings, the future of which is still
unclear. Whereupon, Security Council head Poroshenko openly declared
war on Timoshenko.
He claimed the "SBU was itself a danger to the security of the state" and
needed major revamping. According to Timoshenko, she was sacked by
Yushchenko because she would not agree to the dismissal of SBU chief
Turchinov.
For their part, Yushchenko and Poroshenko raised counteraccusations against
Timoshenko. In reprivatising the Nikopol Ferroalloy plant, she was supposed
to have favoured the Private Bank, one of Ukraine's most influential banks,
and one of her most important supporters. Yushchenko accused her of exerting
enormous pressure on the judges who had to decide on the reprivatisation.
Timoshenko then turned the tables, accusing Poroshenko of trying to prevent
the reprivatisation in the interest of the owner of the steel plant,
Kuchma's son-in-law Victor Pinchuk. In return, he had been promised the
rights to a television channel. Pinchuk had bought the Nikopol Ferroalloy
plant in 2003 for $800 million, although according to Timoshenko it was
worth over $1 billion.
Ironically, the judges decided two days after Timoshenko's sacking in favour
of the reprivatisation.
On September 1 and 2 the dispute escalated further. A close advisor to
Timoshenko declared publicly: "There is nothing but corruption around
Yushchenko." The head of the presidential administration, Olexandr
Sinchenko, cited the same grounds for his own resignation.
On September 8, Deputy Prime Minister Mykola Tomenko tendered his
resignation just hours before the dismissal of Tymoshenko's cabinet, saying
that he did not want "to share responsibility with those people who have
created a system of corruption." Tomenko added that Poroshenko had
created a parallel, "oligarchic" cabinet in Ukraine, obstructing the work of
the lawful one.
After the sacking, Yushchenko continued to deepen the rift with Timoshenko.
He accused her of exploiting her office in order to wipe out the debts of
her previous energy business. She had previously headed "United Energy
Systems," allegedly leaving Euro 1.2 billion in debts, which were wiped out
in a February court decision.
In the meantime, the state attorney has contested this judgement and
announced he is reviving proceedings against Timoshenko, for which she
had already faced custody in remand in 2000.
For her part, Timoshenko launched a new broadside, obviously in tandem with
the Russian oligarch Boris Beresovski, who now lives in voluntary exile in
London. Beresovski, who is presently at loggerheads with the Kremlin,
implied he had supported Yushchenko financially in last year's election
campaign.
Since foreign election campaign assistance is illegal in Ukraine, this could
lead to impeachment proceedings against Yushchenko. Leonid Kravchuk,
president before Kuchma, estimated Beresovski's campaign donations at
$15 million.
What is the dispute about?
The bitter mudslinging between representatives of the nouveaux riches
and various departments in the state apparatus is not over political
principles-even less does it involve matters of liberty and democracy. It
is a battle for influence and property, and related foreign policy
orientations.
The factions around Yushchenko/Poroshenko and Timoshenko/Sinchenko
represent different groups of interests, whose real shape is now being
revealed in the present struggle for power.
Timoshenko/Sinchenko, the most radical opponents of Kuchma's oligarch
regime, represent a layer of the new social climbers, ex-oligarchs and
entrepreneurs who want to get their hands on the property of the established
oligarchs in the name of a "new beginning" and "fair market conditions."
In foreign policy matters, they endorse unconditional support for
Washington. In their efforts to break open the former Soviet sphere of
influence, they stand with Poland, Georgia and the Baltic states of
Lithuania, Latvia and Estonia.
Timoshenko was once the richest woman in Ukraine. As a supporter of Pavel
Lazarenko, who rose to be prime minister in 1998, she established her own
energy empire, thereby crossing swords with then-president Leonid Kuchma
and his son-in-law, the oligarch Viktor Pinchuk.
She fell into disgrace and faced the danger of sharing the fate of
Lazarenko, who had fled to the US and is now in jail for money laundering.
Timoshenko was arrested in 2000 and held in custody in Kiev for six weeks.
She was able to buy her freedom by disposing of large sections of her energy
interests.
Yushchenko/Poroshenko represent a wing of the established oligarchs who
want to loosen traditional links with Russia in order to strengthen their
business relations with Western capital, but who generally proceed more
carefully.
They fear that too close a link with Russia means they will fall behind the
international competition, aiming to retain the existing distribution of
property while seeking the integration of Ukraine into the European Union,
the World Trade Organization and NATO.
Like the Eastern European countries or China, they want to become the
champions and partners for massive foreign investments in the regions of the
former Soviet Union and to take the leadership in breaking open these
markets even further.
Yushchenko proved himself as an attorney of the oligarchs. As a central bank
chief of many years and prime minister in 2001, he managed many crises,
such as the 1996 introduction of a new currency, the grivna, and the 1998
collapse of the rouble. Poroshenko is a minor oligarch who owns a food
company and the independent Channel 5 television station.
He played an important role in bringing down Kuchma and, as head of the
National Security and Defence Council after the Orange Revolution, formed a
sort of shadow government.
Last year, the efforts to detach Ukraine from Russian influence united the
Yushchenko and Timoshenko factions. More recently, growing Russian influence
has driven them apart; the reason being the changed international situation.
On the one side, their most important ally, the US, is suffering an
ever-deeper domestic and foreign policy crisis: the growing debacle in Iraq
and in Afghanistan and the disaster of New Orleans have seriously damaged
the authority and credibility of the Bush administration.
On the other side, following the failed referendum in France on the European
Union constitution, Brussels is no longer able to offer Ukraine a
perspective for joining the EU. Instead, given the present uncertainties on
the international energy markets, the EU, under the leadership of Germany
and France, is relying on establishing closer ties with Russia.
Above all, the recently signed agreement on building a gas pipeline through
the Baltic Sea, directly linking the German and central European gas network
with Russia, is seen as an affront in the traditional gas/oil transit
countries of Ukraine, Poland and the Baltic states. These countries had
energetically supported the Orange Revolution in Ukraine and are seeking a
similar "revolution" in Belarus.
In Uzbekistan also, hopes for a pro-American revolution have shrunk since
the ruler there, Islam Karimov, bloodily suppressed demonstrations against
his regime this spring, seeking closer links with Moscow. He withdrew from
the anti-Russian GUUAM alliance, comprising Georgia, Ukraine, Azerbaijan
and Moldavia, complementing US troops that are stationed in Uzbekistan.
This changed situation has increased the relative weight of Russia and the
established oligarchs, driving a wedge between the new elite in Kiev. This
finally broke apart at its most vulnerable point-the question of what to do
about the property of the established oligarchs.
A struggle over property
The Orange Revolution, which mobilized the masses under the slogans
"against election fraud and corruption" and "for liberty," had also attacked
the oligarchs and thus, at least indirectly, criticised the theft of former
Soviet state-owned enterprises.
Immediately after the formation of the Timoshenko government in February
2005, this subject became the main point at issue with President Yushchenko.
While Timoshenko wanted to reprivatise some 3,000 of roughly 20,000 former
state enterprises that had been effectively stolen, Yushchenko insisted that
only 30 enterprises be subject to scrutiny in an extremely complicated legal
procedure.
Because both factions were not prepared to compromise, this question
increasingly became a point of bitter dispute. With support from Moscow, the
oligarchs began to put mounting pressure on the Timoshenko government.
One of the most important questions became the arrangements for energy
supplies from Russia, on which Ukraine relies heavily. Timoshenko provoked
a renegotiation of gas and oil deliveries, introducing an import tariff on
Russian oil and drastically raising the transit charges for Russian gas
bound for Europe.
The Russian oil producers, who control a major share of the Ukrainian
petroleum market, reacted by drastically cutting supplies. They instigated
"scheduled repairs" in their refineries; soon, long queues had formed
outside Ukrainian petrol stations. Yushchenko intervened on the side of the
Russian oil companies and duped Timoshenko, forcing her to make a public
apology.
An intervention by Yushchenko also prevented a similar crisis in the gas
industry. Russia had threatened to raise the price of its gas to the level
of world prices, more than trebling the purchase price. In the course of
negotiations, the US had rejected Ukrainian plans to make itself more
independent of Russia by seeking gas supplies from Iran.
Similar crises developed on the food market, where the oligarchs reacted to
Timoshenko's plan to curb the smuggling of goods into the country by cutting
the supply of meat and sugar, so that the prices of these products rose by
at least a third, stoking up anger in the general population.
In view of these crises, which threatened to get out of control and which
halved economic growth from 12 to under 6 percent, the pressure on Kiev
grew from international business circles not to drive the reprivatisations
too far.
The Wall Street Journal warned on June 30: "If Ukraine wants to attract
foreign capital and claim first spot in the Western club of free market
democracies, President Victor Yushchenko and his government would be
wise to steer clear of the Russian model," (meaning the expropriation of
the oil billionaire Mikhail Khodorkovsky).
Jean Lemierre, president of the European Bank for Reconstruction and
Development, said that if the Ukrainian government did not rein in
Timoshenko's list of candidates for reprivatisation, "they'd have no
political credibility.... They should take the most obvious cases, but
shouldn't have too long a [reprivatization] list."
In June, Yushchenko spoke openly on this question: "Only the most scandalous
privatisations would be investigated and all other entrepreneurs should be
given a guarantee that their enterprises are safe." There should be "no fear
provoked among the international investors" and "international investors
should not be frightened off."
In this way, Yushchenko sought to assure international capital that there
was no danger to its existing business relations with the oligarchs-the
present owners of the former Soviet state enterprises.
Such fears had led to a crisis in relations with Russia, when, in a struggle
for power, the Kremlin ensured that the oligarch Mikhail Khodorkovsky, at
the time Russia's richest man, was condemned to eight years hard labour
and was relieved of several of his billions.
The fear is that any discussion of the oligarchs' criminal appropriation of
former Soviet state property might unleash forces that could no longer be
restrained, placing in question the private ownership of the means of
production.
The political crisis in Ukraine has peeled away the gloss of the Orange
Revolution. It has revealed a regime that is not concerned with the
interests of ordinary working people. In the last year, public sentiments
were exploited simply to benefit one section of the ruling elite at the
expense of another.
For working people, nothing at all has changed since the "revolution." The
social crisis has continued to intensify. Modest wage increases in the
public sector have been eaten up by price increases, and the situation of
pensioners and the health service continues to worsen.
These problems can only be resolved through the socialist control of social
wealth by the population, and not by replacement of one capitalist faction
by another.
As one worker so appropriately summed up the Orange Revolution at the
end of last year: "It is a struggle between millionaires and billionaires."
------------------------------------------------------------------------------------------------------
LINK: http://www.wsws.org/articles/2005/oct2005/ukra-o03.shtml
==============================================================
12. YET MORE UKRAINIAN FOLKLORE MATERIALS ONLINE
Natalie Kononenko, Kule Chair of Ukrainian Ethnography
University of Alberta, Edmonton, Alberta, Canada
Wednesday, October 5, 2005
Dear Colleagues,
I am writing to announce yet more Ukrainian folklore materials on
line. We have recently completed a set of revisions to our University
of Alberta, Ukrainian Folklore Centre webpage. You can find this
page at http://www.arts.ualberta.ca/~ukrfolk/
I especially urge you to explore the materials under the heading
RESEARCH. Look under Multimedia Resources. We offer a large
set of photographs in a searchable database.
There is a presentation of a wedding in Western Ukraine complete
with description of the stages of the wedding, photographs, and short
video clips. Ukrainian Canadian parallels are also provided.
As always, your feedback is most welcome. Please contact me
nataliek@UALBERTA.CA or the web master, Andriy Chernevych
at andriyc@ualberta.ca.
Natalie Kononenko, Kule Chair of Ukrainian Ethnography
University of Alberta, Modern Languages and Cultural Studies
200 Arts Building, Edmonton, Alberta, Canada T6G 2E6
Phone: 780-492-6810; Web: http://www.arts.ualberta.ca/uvp/
===============================================================
13. SLAVIC DESIGNS BLEND SOVIET-ERA TRADITION WITH MODERN FLAIR
Yulia Tymoshenko's career as fashion icon may have just begun
I grew up in the Soviet Union, where there were no divisions," said the
designer Irene Karavay, who at 27 is the lead designer for the fashion
house Nota Bene. "We didn't know Ukraine from Russia.
My first feeling of national pride occurred in college when I saw a
Ukrainian national costume for the first time. It may sound primitive
or naive, but I was amazed by the mood and character the costumes
evoked."
By Nora FitzGerald, International Herald Tribune
Europe, Wednesday, October 5, 2005
MOSCOW - Last February, when Yulia Tymoshenko was voted prime minister
of postrevolution Ukraine, she wore a balloon-sleeved, gray wool dress with
black lace appliqués and black lace sleeves reaching the middle of her hand.
Russian journalists referred to her as "the merchant's daughter," while a
local fashion pundit commented on her mix of European and Slavic styles,
saying she was "dripping some Chanel on the Ukrainian borscht."
Tymoshenko's days as prime minister are over - she was recently dismissed by
President Viktor Yushchenko - but her determined career as fashion icon may
only have just begun. Her Slavic style with milkmaid braid will soon grace
the posters of a new opposition.
Tymoshenko is extremely selective and measured in her Slavic motifs, though
at times she still achieves the appearance of a contemporary national
costume.
"I love Yulia Tymoshenko," says the Belorussian designer Olga Somaschenko.
"Of course she has a Slavic style, and that's great. Her look is also, I
think, some sort of propaganda for Ukraine."
Fifteen years after the fall of the Soviet Union, Russians have all the
Versace they can afford. But some fashion-forward types are distinctly bored
with the big brands they once worshipped.
At the same time, designers from Russia and its former Soviet republics
are creating a contemporary Slavic style by going back to their roots, and
mixing up ethnic traditions with modern flair. Their historical influences
can be felt even in the showrooms of Italy and Japan.
Yet it is Moscow that has become the beating heart of Slavic style. And it
was Olga Somaschenko's highly original winter 2005 collection - a folkloric
fantasy of colorfully striped knit skirts and softly draped coats trimmed
with alpaca, boots embellished with tassels and bridal-style hair bands
decorated with soft wool flowers - that got some locals rethinking their
wardrobe.
The emerging Slavic style has found a home here in Moscow, an epicenter for
Prada and Dolce & Gabbana. Today, not every woman in Moscow with 3,000,
or $3,600, to spend on a coat buys Burberry.
A subset buy from the Russian breakout designer Denis Simachev, the
up-and-coming Maks Chernetsov, the soulful Belorussian Somashenko, and
the eclectic Ukrainians Irene Karavay and Viktoria Krasnova.
"Slavic designers are very popular in Moscow," said Iryna Danylevska, a
founder and project director of the 12-year-old Ukrainian magazine "Fashion
Season." "To some extent they are the most fed up with Gucci and Prada."
Recently, Russian fashion impresarios have made a commitment to trawl
regularly through former Soviet republics, looking for contemporary
interpreters of Slavic desires.
Simachev is one of the more fun-loving and successful Slavic designers in
recent years. His clothes sell in Europe and Japan as well as Russia.
Simachev's Russian retro seems spun from his own fractured, if loving, fairy
tales.
His current women's collection plays with the traditional Russian floral
pattern, "gzhel," in blue and white. The patterned dresses and shirts are
offset by 1970s-style fox fur hats, retro glasses and red suede boots.
"That's the image of my mom when I was a child," the 30-year-old designer
said. "She was a teacher in Moscow and that was the look."
Simachev's men's collection offers up a romance with the Russian sailor,
eschewing the traditional stripes for all white. His first collection was
the embodiment of U.S.S.R. nostalgia, a theme that also helped the young
Russian designer Chernitsov soar at last year's Russian Fashion Week,
with his playful, cosmonaut-inspired clothes.
For some designers, the social realism of their childhoods as well as books
and films have become a large part of their Slavic style.
For European designers, Slavic style still means a brightly colored
folkloric or gypsy look, according to the Slavic designers. Those accents
include national embroidery and Cossack-style coats.
"I knew Slavic style would be fashionable now because in Soviet times,
ethnic and conceptual fashion were forbidden," recalls the 30-year-old
Ukrainian designer Viktoria Krasnova. "Everything was alike. So now I try to
make beauty as a Slavic soul understands it. My clothes are very feminine
and at the same time not too sexually aggressive; the mood is sometimes
very cheerful and other times very thoughtful."
One of Krasnova's standout pieces for spring is a pearl-grey Zhupan coat
with a narrow cut, white ribbon piping and multiple pleats extending from
the base of the spine.
Last week, representatives of the Milan showroom Gizelle visited Kiev and
chose Krasnova's collection for its commercial showcase.
"I grew up in the Soviet Union, where there were no divisions," said the
designer Irene Karavay, who at 27 is the lead designer for the fashion
house Nota Bene. "We didn't know Ukraine from Russia.
My first feeling of national pride occurred in college when I saw a
Ukrainian national costume for the first time. It may sound primitive or
naive, but I was amazed by the mood and character the costumes evoked."
Karavay's Slavic motifs can be subtle or assertive - her brightly colored,
soft jersey shirts often have beads or half necklaces of pressed stones
attached to the printed jersey. Her coats are replete with geometric
appliqués that appear both folkloric and modern.
Moscow and St. Petersburg designers are also using some Slavic motifs -
skirts decorated with hundreds of tiny feathers, buttons and ribbons
encircling sleeves and embroidery placed like tattoos on the shoulder blade
or collarbone of a shirt.
Ten years ago, Slavic designers - and there weren't many of them - wanted to
create clothes that were near replicas of Western designers. Roberto Cavalli
and Dior are still worshipped in Moscow, but local designers are freeing
themselves up, playing not only with the decorative elements of national
costumes, but the creation of well-made vests, narrow-fitted coats, corsets
and big sleeves.
With her highly decorated suits festooned with ribbons and buttons,
Somaschenko appears steeped in folkloric culture. But she says she surprises
herself. "I never thought my roots would influence my work," she said. "I
grew up in Belarus during the Soviet era and you know there was no national
identity. I certainly never thought about being Belorussian."
It is trendy Moscovites who buy her romantic floral head pieces, not
Belorussians. "One thing is for sure: The people of Belarus know nothing
about me. I work only for the Russian market. We don't yet have this culture
of wearing the new Slavic style. The time for us hasn't come yet." -30-
-------------------------------------------------------------------------------------------------------
Nora FitzGerald is a freelance journalist based in Moscow.
LINK: http://www.iht.com/articles/2005/10/04/opinion/rslav.php
=============================================================
14. UNICEF: MANY DISABLED CHILDREN 'ABANDONED' IN
INSTITUTIONS OF EX-COMMUNIST COUNTRIES
By Bradley S. Klapper, AP Worldstream, Tue, Oct 04, 2005
Many disabled youths in the former communist countries of Eastern Europe
and Central Asia are being institutionalized, perpetuating the Soviet
Union's practice of "child abandonment," according to a report released
Wednesday by the U.N. Children's Fund.
While attitudes toward disabled children are getting better in these
regions, improvements in state support are lagging behind, said the 64-page
study undertaken by UNICEF's Innocenti Research Center in Florence, Italy.
Instead of searching for ways to integrate children with disabilities into
general schools, these countries still overwhelmingly employ a policy of
"defectology," a leftover Soviet discipline where disabled children are put
in residential schools and institutions, separated from society, community
and family.
As of 2002, some 317,000 children in these countries lived in such separated
institutions, a number largely unchanged since the fall of the Iron Curtain,
the report found. By contrast, the rate of institutionalization in Western
countries is up to three times lower.
"The prospect for these children is to graduate to an institution for adults
and to face a pattern of denial of human rights," the study said.
The countries studied included eight former communist states that have since
become members of the European Union _ Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Poland, Slovakia and Slovenia _ and two others scheduled
to join soon _ Bulgaria and Romania.
The study also included Balkan states Albania, Bosnia and Herzegovina,
Croatia, Macedonia and Serbia and Montenegro, as well as former Soviet
republics Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan,
Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.
"Although children with disabilities have become more visible since the
beginning of (the post-communist) transition and attitudes towards them and
their families are changing, many of them are simply 'written off' from
society," said Innocenti's director Marta Santos Pais.
Santos Pais said the "high rates of child abandonment" could be explained
by these countries' outdated medical approaches and lack of alternative
methods for dealing with disabilities.
UNICEF is calling for an end to the segregation of disabled children,
suggesting instead an increase in social benefits to affected families and
greater participation of parents in decisions affecting their children.
"The reality is many parents feel they have no choice but to give up their
children," Santos Pais said. "What these families need is strong social and
economic support."
Some 1.5 million children in these 27 countries were registered as disabled
in 2000, triple the number in 1990, the report said. However, the surge was
largely the result of better recognition and registration of disabilities,
rather than any actual increase in the number of children disabled. -30-
===============================================================
15. SYMPOSIUM FOR VISITING UKRAINIAN JOURNALISTS BY THE
NATIONAL PRESS CLUB PRESIDENT'S TASK FORCE ON
JOURNALISM IN EMERGING DEMOCRACIES
Alla Rogers, Task Force Co-Chair
National Press Club Presidents Task Force On
Task Force on Journalism in Emerging Democracies
Washington, D.C. Monday, October 3, 2005
Committee Members: NPC President Rick Dunham, Task Force Co-chair
Alla Rogers, Myron Belkind, Co-chair, President's Task Force, Task Force
Members Jerry Zremski and John Donnelly, NPC Board Chair Donna
Leinwand, Vice President Jonathan Salant, General Manager John Bloom
SYMPOSIUM Venue: Oct 3-4, McClendon Room, NPC, 9:00am-12: 30 pm
Oct. 5-7, Library, computer class room, NPC, 9:00am-12: 30pm
SYMPOSIUM Program: Opening Session: Monday, Oct.3, 9:00am-12:30pm.
Alla Rogers, Executive Director of Symposium, overview and welcome
remarks. Rick Dunham, NPC president and White House Correspondent for
Business Week, talking about what the NPC offers journalists and discussing
what it is like to work professionally in DC in general and specifically at
the White House.
Myron Belkind, George Washington University, chair of the International
Correspondents Committee, retired AP bureau chief, about his appropriate
experiences as a foreign correspondent for AP as well as, more recently,
conducting workshops in Serbia for journalists on Conflict Resolution
coverage and issues related to press freedom in countries with emerging
democracies (and emerging freedom of the press).
Tuesday, October 4, 2005, 9:00am-12: 30pm.
Alla Rogers, Bob Tinsley, International Center for Journalism
ICEA, International Cultural and Educational Association, Directors Elena
Seitz, Larisa Koval. Development of press training programs in Ukraine
through NPC Task Force and ICEA. Press visits from American press to
Ukraine.
Wednesday, October 5, 2005, 9:00am-12: 30pm.
Dr. Richard Rubenstein of the Institute for Conflict Analysis and
Resolution at George Mason University and Dr. Karina Korostelina, also
from George Mason University, ICAR.
The Role of Mass Media in a Democratic Society Media and Conflict
Resolution Identity, Ethnicity, Nationality - Power Point Presentation
Thursday, October 6, 2005, 9:00am-12:30 pm
Kurt Wimmer - Covington &Burling
Freedom of Information, Libel and the Law, Journalism Ethics
Friday, October 7, 2005, 9:00am-12:30 pm
Morgan Williams, Director,Washington Office
SigmaBleyzer, Emerging Markets Private Equity Investment Group
Publisher, The Action Ukraine Report (AUR)
Chairman, Executive Committee, Ukraine-U.S. Business Council
Publisher, Ukraine Information Website, www.ArtUkraine.com
Visitors from Ukrainian American organizations working with NGOs
and non-profits; Conferring of certificates of participation in the Autumn
Symposium on Journalism in Emerging Democracies. Partner country,
Ukraine.
Friday, October 7, 2005, 3:00 pm visit to Embassy of Ukraine, Farewell
cocktails 6:30--8:30 Alla Rogers Gallery, 1054 31st Street, NW,
Georgetown, DC 20007 (202) 333-8595
Field Trips; Senate Press Gallery; Trip to Washington Post Newsroom -
Trip to Voice of America; Trip to ABC News; Trip to National Gallery of
Art Trip to Lincoln Memorial, Vietnam War Memorial, WWII
Air and Space Museum; Trip to Embassy of Ukraine. -30-
--------------------------------------------------------------------------------------------------
Contact: Alla Rogers (202) 965-0802; allarogers@cs.com.
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