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Action Ukraine Report

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

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

"THE ACTION UKRAINE REPORT - AUR" - Number 588
Mr. E. Morgan Williams, Publisher and Editor
Washington, D.C., Kyiv, Ukraine, FRIDAY, October 21, 2005

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

1.KATERYNA YUSHCHENKO: HOPE TO STIMULATE GROWTH
      OF PHILANTHROPY AND REVIVAL OF OLD UKRAINIAN
                  TRADITIONS AND CULTURE OF GIVING
SPEECH: By Ukraine's First Lady Kateryna Yushchenko
10th Annual Conference of the Grantmakers East Group (GEG)
Press office of the President of Ukraine Victor Yushchenko
Kyiv, Ukraine, Thursday, 20 October 2005

2. YUSHCHENKO AND INTERNATIONAL INVESTORS DISCUSSING
           CREATION OF FAVORABLE INVESTMENT CLIMATE
Ukrainian News Agency, Kyiv, Ukraine, Thu, October 20, 2005

3. YUSHCHENKO: THE CAUSES FOR THE CRISIS IN UKRAINE:
                                 THE FIRST IS MYSELF!
URA-Inform, Kyiv, Ukraine, Thu, October 20, 2005

4. UKRAINE TO JOIN WTO IN 2005, UKRAINIAN PRES ASSURES
RBC, Moscow, Russia, Thu, October 10, 2005

5.                       UKRAINE, RUSSIA AND THE WTO
COMMENTARY: by Walter Prochorenko, PhD.
The Action Ukraine Report (AUR), Number 588, Article 5
Washington, D.C., Friday, October 21, 2005

6.                                    MURDER IN KYIV
               Myroslava Gongadze attempts to discover the truth
PBS's Frontline/WORLD on Ukraine and Gongadze Case, October 25th.
The Action Ukraine Report (AUR), Issue 588, Article 6
Washington, D.C., Thursday, October 20, 2005

7. UKRAINE'S DEPUTY PROSECUTOR-GENERAL SAYS SECURITY
          SERVICE LET SUSPECTED KILLER OF GONZADZE SLIP
                   "President admits: SBU frightened Pukach off"
INTERVIEW: with Deputy Prosecutor-General Viktor Shokin
Segodnya, Kiev, Ukraine, in Russian Tue, 18 Oct 05; p 7
BBC Monitoring Service, UK, in English, Thu, Oct 20, 2005

8. FEAR SPREADS IN UKRAINE AS BIRD FLU ARISES IN NEIGHBORS
Natasha Lisova, Associated Press (AP), Hazhyn, Ukraine, Thu, Oct 20, 2005

9.           UKRAINIAN VETERINARY CHIEF RESIGNS AFTER
                                    BIRD FLU CRITICISM
Interfax-Ukraine news agency, Kiev, in Russian 1127 gmt 20 Oct 05
BBC Monitoring Service, UK, in English, Thu, Oct 20, 2005

10. EX-OWNERS OF UKRAINIAN STEELMAKER SUE IN US COURT
Associated Press (AP), New York, NY, Thursday October 20, 2005

11.       UKRAINIAN PRESIDENT DISCUSSES INVESTMENT IN
                          GAS EXPLORATION WITH SHELL
One Plus One TV, Kiev, in Ukrainian 1630 gmt 18 Oct 05
BBC Monitoring Service, UK, in English, Tue, Oct 18, 2005

12. UKRAINE MAY LIMIT FOREIGN ACCESS TO OFFSHORE FIELDS
Interfax, Kyiv, Ukraine, Wednesday, October 19, 2005

13.   UKRAINE BANKS RAISE LOAN RATES TO SECURE THEIR
                     RESOURCES FROM POLITICAL RISKS
         Price of credit resources rising due to nearing parliament vote
ANALYSIS: Roman Bryl, Ukraine Analyst &
Andrew Afanasiev, CIS Senior Analyst
IntelliNews-Ukraine This Week
Kyiv, Ukraine, Monday, October 17, 2005

14.            U.S. GIVES UKRAINE EQUIPMENT TO FIGHT
                                  HUMAN TRAFFICKING
                   Cars and office equipment worth USD 135,000
Ukrainian News Agency, Kyiv, Ukraine, Thu, October 20, 2005

15.      UKRAINE PARLIAMENT REJECTS CATTLE EXPORT
                          BILL NEEDED FOR WTO ENTRY
Interfax-Ukraine news agency, Kiev, in Russian 1143 gmt 18 Oct 05
BBC Monitoring Service, UK, in English, Tue, Oct 18, 2005

15.               THE JUDICIARY AND THE RULE OF LAW
                                  United States and Ukraine
   Election or Appointment of Chief Judges - A Comparative Analysis
By Bohdan A. Futey, Zerkalo Tyzhnia
Kyiv, Ukraine, Saturday, October 15, 2005

16.       "A REAL WAR ON THE BORDER: CONTRABAND IS
                        COMING THROUGH IN CARAVANS!"
           Contraband runners practically feel they run Luhansk Region
By Oleh Prytykin, Segodnya, Kiev, in Russian 19 Oct 05; p 8
BBC Monitoring Service, UK, in English, Thu, Oct 20, 2005

17. TASK FORCE ON JOURNALISM IN EMERGING DEMOCRACIES
              Report on October 3 -7, 2005 Washington DC meetings
The Action Ukraine Report (AUR), Number 588, Article 17
Washington, D.C., Friday, October 21, 2005

18.  EDUCATIONAL PRACTICE AND THE MAKING OF CITIZENS
  IN UKRAINE BEFORE AND AFTER THE ORANGE REVOLUTION
     Shevchenko Scientific Society, NY, NY, October 29, 2005, 5 p.m.
LECTURE: By Anna Fournier (Johns Hopkins University)
The Action Ukraine Report (AUR), Number 588, Article 18
Washington, D.C., Friday, October 21, 2005

19.           U.S.-UKRAINIAN INVESTMENT SYMPOSIUM
                                  "Sustaining Momentum"
                 October 31st, 2005 at the Harvard Club of Boston
International Economic Alliance, Cambridge, MA, October 2005

20. UCCLA ISSUES DOCUMENTARY COLLECTION ON GREAT
      FAMINE (HOLODOMOR) OF 1932-1933 IN SOVIET UKRAINE
Ukrainian Canadian Civil Liberties Association (UCCLA)
Calgary, Alberta, Canada, Tuesday, October 18, 2005

21.        UKRAINIAN NEWSPAPER FOR HANDELSBLATT
                   (Handelsblatt startet ukrainische Tageszeitung)
                               Will be printed in Russian
Handelsblatt (English abstracts), Thursday, Oct 20, 2005

22.            GALICIA REGION OF UKRAINE REVISITED
             Ukraine Trip Will Pioneer Multicultural Understanding
Shimon Redlich & John-Paul Himka
Canada, Wednesday, October 19, 2005
====================================================
1. KATERYNA YUSHCHENKO: HOPE TO STIMULATE GROWTH
        OF PHILANTHROPY AND REVIVAL OF OLD UKRAINIAN
                  TRADITIONS AND CULTURE OF GIVING

SPEECH: By Ukraine's First Lady Kateryna Yushchenko
10th Annual Conference of the Grantmakers East Group (GEG)
Press office of the President of Ukraine Victor Yushchenko
Kyiv, Ukraine, Thursday, 20 October 2005

Kateryna Yushchenko's speech at the 10th annual conference of the
Grantmakers East Group:

Dear representatives of foundations and donor organizations!

Welcome to Ukraine!

It is my pleasure to be here at opening of the 10th annual conference of the
Grantmakers East Group. I am very flatted that you made a decision to
conduct the Tenth Conference in Ukraine. It is another sign of the world's
newly awakened interest in our country.

The topic of your conference this year, Response to Change, is especially
relevant to my country. As you know, Ukraine has undergone profound
changes in the past year. We took a quantum leap forward in the
development of our democracy and civil society.

The Orange Revolution happened because the citizens of Ukraine had the
courage to stand up for their dignity at a critical moment in their  history
and Ukrainians felt the moral support of the international community, which
was rooting for their success in gaining their freedom.

Ukraine has always been located in the very center of Europe, and has never
forgotten its European roots and values, its desire for democracy and
freedom.  Fourteen years ago, after gaining independence, inspired by its
own great history and example of other newly independent countries,

Ukraine started to build and develop its civil society, a new system of
government, its own economic system. Some of your organizations and your
foundations supported that long-term development, and for that I wish to
express my gratitude.

But the Orange Revolution was not just a culmination, but a beginning.

Ukraine faces formidable challenges ahead:

[1] institutionalizing democratic processes;
[2] developing and harmonizing new legislation,
[3] overcoming poverty and achieving social justice;
[4] renewing a culture of responsibility to one's community, country,
and society;
[5] instilling transparency and accountability into government, business,
and the nonprofit sector;
[6] dealing with the past to ensure a better future;
[7] building a society where each individual is valued and respected;
[8] setting up effective systems to promote sustainable development -
these are just some of the main challenges.

The people of Ukraine are looking for economic and political stability
and progress in quality of life that will only be possible after bold and
methodical economic reforms.

Ukrainians are inspired and proud of what they already achieved, and are
ready to work hard in order to continue to be successful.

I proudly represent an organization that is helping to address some of these
pressing issues - The Ukraine 3000 Foundation. It was launched five years
ago to address major social problems and to help renew traditions of
charitable giving in Ukraine.

We organize our work in three main directions:  Yesterday, Today, and
Tomorrow.

"Yesterday" is devoted to the preservation of Ukraine's historical and
cultural heritage. "Today" targets Ukraine's social ills. And "Tomorrow"
aims to involve NGOs in formulating a strategy for Ukraine's future
development.

Some of our key projects include:

- a "Hospital to Hospital" program which is intent to improve health
care for children by finding partners such as hospitals, universities,
medical foundations and pharmaceutical companies for children's
hospitals throughout Ukraine. We also have a dream of creating
a new children's hospital in Kyiv;
- we are supporting program to help homeless, orphan children and
the disabled;
- providing grants for historical, archeological, ethnographic and
cultural research and programs;

We have a very large project to promote greater awareness of Genocide
Famine of 1932-33. We also support educational programs for youth
in a wide range of disciplines.

Through our cooperation with other Ukrainian and international
organizations, we hope to resolve some of my country's most pressing
problems in different areas.

By our example, we hope to stimulate the growth of philanthropy and the
revival of old Ukrainian traditions and culture of charity giving in
Ukraine.

There have been times in the past when Ukrainians donated their land,
founded educational and charitable institutions, museums, hospitals,
orphanages and social programs.

Helping those in need, granting access to high quality education for poor
people, supporting art and culture were matters of dignity for nobility,
clergy and tradesmen.

We want to bring back these traditions and this is where we need your help.
We look to you for continued partnership, whether it is with the Ukraine
3000 Foundation or with the myriad of fine Ukrainian charitable
organizations.

We welcome your assistance as Ukraine continues on the path of European
integration. I'm very happy to see so many representatives of donor
organizations here today.

You have come to share your insights and experience with each other
as well as with Ukrainian foundations, some of whom have already attended
Grantmakers conferences, and others who have come for the first time.

It's very important to have such opportunities to learn from colleagues and
to raise the professional level of philanthropy. It is also extremely
important to have a forum where assistance and efforts of international
donor organizations can be coordinated and communicated to public. We
want your efforts to be supported and appreciated.

But not only do we expect to learn from non-Ukrainian organizations on how
we can better face our own challenges - we also hope that you will find our
experience valuable, especially in building democracy and civil society. Of
course we still struggle with difficulties, but we are determined to
overcome them, and we will.

My country has much to offer, as I am sure you will discover. It is also
important that we were able to adapt experience of other countries to our
realities and to make it relevant for our needs.

Much as we gained from the experience of other countries, we also wish to
extend a helping hand to others, and in this, too, we are counting on your
support.

I am confident that Ukraine is embarking on a new era of democracy,
economic prosperity and freedom. I wish you a successful conference and
a wonderful stay in Ukraine!  -30-
     [Edited by The Action Ukraine Report (AUR) Monitoring Service]
-------------------------------------------------------------------------------------------------
Information about the Ukraine 3000 Foundation:
http://ww2.yuschenko.com.ua/eng/present/Ukraine_3000_foundation/
-------------------------------------------------------------------------------------------------
           FOOTNOTE: GRANTMAKERS EAST GROUP (GEG)
The mission of the Grantmakers East Group is to promote the development of
civil society in Central and Eastern Europe (CEE) and the Newly Independent
States (NIS) by providing funders with a platform to increase the
effectiveness of their grantmaking efforts and to encourage new donor
activity in the region.

GEG's core activity is an annual meeting for grantmakers active in CEE and
NIS. This event provides a forum for exchange of practical experience and an
opportunity to discuss issues important to grantmakers working in CEE and
NIS.

The specific activities of GEG reflect needs expressed by its participants
and address challenges and solutions facing donors supporting the healthy
development of civil society in the region.

GEG is an informal coalition of private and public grantmakers active in CEE
and NIS. They include representatives of foundations, bilateral donors,
multilateral organisations, and corporate funders.

Although many participants are members of the European Foundation Centre
(EFC), this is not a requirement for participation in the annual meeting.

The group was initiated by the EFC members in 1992 and currently operates as
an independent project within the EFC structure. The GEG annual meeting is
one of the premier events on the calendar of funders active in CEE and NIS.

                                      ANNUAL MEETINGS
The tenth GEG annual meeting, scheduled for 20-21 October 2005 in Kyiv,
builds upon highly successful meetings in Paris (1996), Brussels (1997),
Turin (1998), Berlin (1999), Warsaw (2000), Bucharest (2001), Moscow (2002),
Bratislava (2003), and Sofia (2004).

The EFC supports the activities of GEG by providing technical assistance and
secretarial support and lending its information resources and networking
facilities.
                                          GEG DONORS
The work of GEG has been made possible thanks to the generous support of
Charles Stewart Mott Foundation; Charities Aid Foundation; The Eurasia
Foundation; The Ford Foundation; Freedom House; German Marshall Fund
of the United States and its Balkan Trust for Democracy; King Baudouin
Foundation; Levi Strauss & Co.; The Netherlands Ministry of Foreign Affairs;
Organisation for Security and Cooperation in Europe (OSCE) Office for
Democratic Institutions and Human Rights; Robert Bosch Foundation; and
Trust for Civil Society in Central & Eastern Europe.

                       GEG STEERING COMMITTEE MEMBERS
The activities of GEG are guided by a Steering Committee, a voluntary
group of CEE/NIS grantmakers which is currently composed of:

[1]   Sandra Breka (Robert Bosch Foundation)
[2]   Elena Chernyshkova (Dynasty Foundation)
[3]   Maria Chertok (Charities Aid Foundation)
[4]   Fabrice de Kerchove (King Baudouin Foundation)
[5]   Nick Deychakiwsky (Charles Stewart Mott Foundation)
[6]   Andrew Kingman (Allavida)
[7]   Lidia Kolucka-Zuk (Trust for Civil Society in Central & Eastern
Europe)
[8]   John Kubiniec (Freedom House)
[9]   Zoran Puljic (Mozaik - Community Development Foundation)
[10] Childerik Schaapveld (OSCE Office for Democratic Institutions
and Human Rights)
[11] Shakirat Toktosunova (The Eurasia Foundation)
[12] Hidde van der Veer (Ministry of Foreign Affairs of the Netherlands)
[13] Ivan Vejvoda (German Marshall Fund of the United States -
Balkan Trust for Democracy)
[14] Joanna Wieteska (European Foundation Centre)
[15] Andre Wilkens (Open Society Institute-Brussels)
----------------------------------------------------------------------------------------------
For more information on the Grantmakers East Group, please contact:
GEG Secretariat, EFC Warsaw Office, Jaracza 3/39, 00-378;
Warsaw, Poland, tel./fax: +48.22.827.2227, e-mail: gegam@efc.be
Website: http://www.efc.be/projects/GEG/default.htm
====================================================
2. YUSHCHENKO AND INTERNATIONAL INVESTORS DISCUSSING
           CREATION OF FAVORABLE INVESTMENT CLIMATE

Ukrainian News Agency, Kyiv, Ukraine, Thu, October 20, 2005

KYIV - President Viktor Yuschenko and members of the Consultative
Council on Foreign Investments have started a meeting to discuss
urgent measures to create a favorable investment climate in Ukraine.

The participants in the meeting will also discuss legislative regulation of
the rights of shareholders, introduction of international accounting and
audit standards, reform of the tax system, the fight against corruption,
creation of clear rules or entrepreneurship, guaranteeing property rights,
and simplification of the procedures for acquiring land.

They are also expected to raise the issue of an effective system for
supporting investments and innovations as well as introduction of a system
of public accountability for the heads of government agencies based on the
results of their activities in the area of investment and innovation.

At the start of the meeting, Yuschenko informed participants in the meeting
about plans to develop of relations with the European Union and the
Ukrainian authorities' proposed efforts to optimize the operation of a
competitive and transparent market in Ukraine.

Among the achievements of the government, Yuschenko cited a 14% increase
in the number of business entities in the country following the introduction
of the "single window" for registration of businesses and a "single window"
for customs registration procedures.

He also informed participants in the meeting about plans to cancel 4,500
regulatory acts obstructing business by January 1, 2006. Yuschenko said
he understood the economic mistakes that have been made in the past
seven months.

"We understand those mistakes that have been made by the authorities in the
past seven months," Yuschenko said. He added that he was prepared to
discuss the period and method of correcting these mistakes.

According to him, these mistakes include the decision to close free economic
zones and statements about re-privatization of state assets. "It was a bad
signal to businesses, although no political decision [on re-privatization]
was made by me or the parliament," Yuschenko said.

Concepts for the working groups of the Consultative Council on Foreign
Investments will be adopted and a memorandum drafted at the end of the
meeting.

In addition to [1] Yuschenko, Ukraine is represented at the meeting by:
[2] Parliament Speaker Volodymyr Lytvyn,
[3] Prime Minister Yurii Yekhanurov,
[4] Presidential Secretariat's head Oleh Rybachuk,
[5] National Bank of Ukraine's Chairman Volodymyr Stelmakh,
[6] Economy Minister Arsenii Yatseniuk,
[7] Finance Minister Viktor Pynzenyk, and the
[8] Presidential Secretariat's first deputy head Ivan Vasiunyk.

International investors are represented at the meeting by:
[1]  Microsoft's president for Russia and the CIS Olga Dergunova,
[2]  American Chamber of Commerce in Ukraine's President Jorge Zukoski,
[3]  Kraft Foods Ukraine's Board Chairman George Christopher Logush,
[4]  European Business Association's President Bjorn Markstedt
(European Union),
[5]  Ernst & Young Global's Board Chairman Paul Ostling (United States),
[6]  German economic delegation to Ukraine member Karin Rau,
[7]  Cargill Europe's President Dave Rogers (Great Britain),
[8]  Barclays Capital's head Hans-Jorg Rudolff (Great Britain),
[9]  Trust investment bank's President Ilya Yurov (Russia), and
[10] Western N.I.S. Enterprise Fund's President Natalie Ann Jaresko
(United States).

As Ukrainian News earlier reported, Yuschenko approved the new
composition of the Consultative Council on Foreign Investments, which
is made up of 23 people and is headed by Yuschenko, in April. -30-
====================================================
      Send in names and e-mail addresses for the AUR distribution list.
====================================================
3. YUSHCHENKO: THE CAUSES FOR THE CRISIS IN UKRAINE:
                                 THE FIRST IS MYSELF!

URA-Inform, Kyiv, Ukraine, Thu, October 20, 2005

The President Viktor Yushchenko has admitted that during the last seven
months the authority has made a lot of mistakes. The head of the state
stated about that opening the sixth meeting of the Consultative council
regarding foreign investments in Ukraine.

"We understand the faults committed by the authority during the last 7
months,' said the President. He noted that first of all that relates to
cancellation of the 24 free economic zones and priority development
territories in Ukraine.

Besides, according to the President, there are quite problematic
privatization matters. Viktor Yushchenko added that the authority's latest
steps of revision sent the worst signals for the market. "That was the bad
signal for the business although neither I nor Verkhovna Rada made any
political decision regarding this matter - that is a true fact,' said the
President.

According to him, currently the appropriate rumors are circulating among the
investors and businessmen, sometimes rising to legends level, and we have to
rectify that. "There will be no re-privatization un Ukraine. We proceed from
the fact that if we start the discussion of that today we shall lose the
future,' said the President.

He added that in this regards the Memorandum has been signed between
Verkhovna Rada, the cabinet and the President stating that private property
is inviolable.

Beside that the president has added that in today's meeting with investors
it is necessary to express the opinion on the Ukraine's economic growth
strategy. Viktor Yushchenko noted that European integration is the Ukraine's
strategic choice.

According to him, Ukraine is striding along that road for 7 months, and
today the tasks ahead of us are as clear as never before. "During the 7
months in our dialogue with the European structures we have achieved as
much as we have not managed to achieved for the past, supposedly, 10
years," Yushchenko said.

He added that presently Ukraine has the Ukraine-EU action plan, the road
map regulating Ukraine's steps of the Euro-integration process, obtaining
the market economy country status and joining WTO.

Viktor Yushchenko reminded that on December 1st the Ukraine-EC summit
willtake place in Ukraine. Besides, according to the President, Ukraine has
applied to EC regarding revision of the visa policy regarding Ukraine
towards its liberalization. The next step, he said, will be the talks with
EC regarding forming of the free trade zone.

V. Yushchenko expects that these talks will start in late 1st quarter of the
next year. According to the President, actions like that will help to adapt
the economy of Ukraine to the EU standards.

At the same time the president noted that the Ukrainian authority is
actively working on the optimization of competitive and fragrant market
of Ukraine. In particular, he said, the radical revision of the regulatory
policy is under way.  -30- [Action Ukraine Report Monitoring Service]
------------------------------------------------------------------------------------------
LINK: http://en.ura-inform.com/archive/?/2005/10/20/~/39677
====================================================
       Send in names and e-mail addresses for the AUR distribution list.
====================================================
4. UKRAINE TO JOIN WTO IN 2005, UKRAINIAN PRES ASSURES

RBC, Moscow, Russia, Thu, October 10, 2005

KIEV - President of Ukraine Viktor Yushchenko has been said to express
certainty today at a meeting of the foreign investment advisory council that
Ukraine would complete the required WTO procedures in 2005, despite
foreign experts' allegations.

He also revealed that he regarded talks with the EU over a free-market area
as the next step, and that the authorities were proposing to start the
negotiations in the first quarter of 2006.

Yushchenko said that Ukraine was guided by a strictly outlined three-year
Ukraine-EU plan, and a road map for the next 15 months had been worked
out based on this plan. The two documents provide for Ukraine's accession
to the WTO this year.

Simplification of visa procedures between the EU and Ukraine is another
important issue in the opinion of the President which is being discussed
now.

The president also reported that the Ukrainian-EU summit, with GB Prime
Minister Tony Blair in the chair, was scheduled for December 1 in Kiev.
====================================================
5.                    UKRAINE, RUSSIA AND THE WTO

COMMENTARY: by Walter Prochorenko, PhD.
The Action Ukraine Report (AUR), Number 588, Article 5
Washington, D.C., Friday, October 21, 2005

If anyone ever dreamed that Yanukovych or Russian supporters
in Ukraine (of which there are many more than one would ever
imagine), would ever encourage Ukraine's accession to the WTO,
then they are as gullible as those who believe that bilateral
treaties between Russia and Ukraine will ever benefit Ukraine.

There is no doubt in my mind that Russia will continue to
pressure Ukraine to return to its sphere of influence and will
use any and all means to ensure that this happens.

As much as we in the Diaspora would like to think otherwise,
recent mistakes by President Yushchenko, and the political mess
created by the internal infighting within Ukraine's government,
have provided the necessary impetus for Russia to achieve this
goal.  Forgive the pessimism, but this feeling is tempered by
experience and historical precedents.

Unfortunately the West is both unable and unwilling to provide
Ukraine the necessary energy independence, the reciprocal trade,
and the investments that Ukraine needs to break the bonds that
tie it to Russia.

This is evidenced in The US by the pettiness of the attempts in
Congress to repeal the Jackson-Vanick amendment, as well as
the recent EU statement by European Commission President
Jose Manuel Barroso, ("The Action Ukraine Report - AUR"
- Number 580), that Ukraine needs to do less talking and show
more concrete steps to achieve a market economy.

This is the classic case of putting the cart before the horse. Without
"concrete" support from the West, Ukraine has no alternative but
to be re-engulfed by Russia's dominance.  What has the EU done
to assist Ukraine in increasing its trade with Europe or to take
those concrete steps of which Barroso speaks? What can the US
doto ensure that Ukraine becomes energy independent when the US
itself cannot achieve this goal?

I have to respectfully disagree with at least one of Dr. Taras
Kuzio's assessments in his article "Russia still gets it wrong on
Ukraine" published in the Eurasia Daily Monitor, Vol 2, No. 185,
concerning Ukraine's reorientation toward Russia rather than
Europe.

As much as we would like to believe otherwise, this is
already happening and no amount of wishful thinking will change
these facts.  Europe, the US, and much of the industrialized
world continue to give Ukraine the proper amount of "lip service"
(the very same thing they accuse Ukraine of doing), and then they
turn their backs on Ukraine's efforts to become a part of their
economic order.

In the meanwhile, Russia sits patiently and watches Ukraine making
mistake after mistake and then continues to strengthen its grip on
Ukraine's dependence on it for energy, trade and investments.

Whether Yekhanurov, Kinach or even Yushchenko make their
courtships toward Russia out of desire or necessity, the sad
truth is that they have no other alternatives at this point.  As
long as the West continues to admire Ukraine's democratic
aspirations but fails to provide concrete assistance, then
Ukraine's hopes to become a true European nation will continue
to be only a dream.

As for Ukraine's WTO aspirations, they now seem further away
from reality than ever before.  It's quite obvious that Russia does
not want Ukraine to become a WTO member before it does.  Thus
Ukraine's only hope for the nominal image face-lift that a WTO
membership can provide seems to be further away from achievement
than ever before.

Yushchenko's new political partner, Yanukovych, and his Russian-
influenced power peddlers will not allow this to happen.  The other
sad truth is that Ukraine is now paralyzed before the Parliamentary
elections and nothing much will happen before April or May 2006.

This period of uncertainty will continue to strengthen Russia's hand
and it may even preclude the democratic elements of Ukraine's
political machine to ensure a gainful pro-West win in these elections.

True, Ukraine, has made its share of mistakes and serious
political errors in recent months.  These have certainly not
endeared them to the West and some were even seen as rashly
executed and poorly analyzed.

But Ukraine is still young and the new government is still younger.
They are entitled to make such mistakes.  The one thing that they
should learn to do, however, is to cooperate and work together if
they are to achieve their goals.  But this is the horse of another
color and probably would require volumes just to analyze.

So what can the West do other than wring its hands or sigh with
exasperation at the current situation in Ukraine?  First, and
despite all the previously cited problems, it "must" ensure that
Ukraine gains WTO accession at any cost.  Leaving "influence
peddling" to Russia alone will not enable this to happen.  The
West must take a pro-active role in this process. Europe must
also practice and participate in economic assistance to Ukraine.

Their efforts so far have been laughable and completely
inadequate.  The EU probably invests more in office supplies than
it does in a country that can eventually be a meaningful economic
partner.   The EU should not fear that Ukraine can become a
burden on its economy.  Ukraine, like Turkey, can be economically
self sufficient if they are property assisted and funded.

The EU and especially the US should seek to strengthen Ukraine's
alliances with Poland, the Baltic States, the Balkans, but
especially the energy rich countries of the Caucasus and Central
Asia.

Meanwhile the US should realize that Ukraine can be a great partner
and a tremendous asset in that part of the world. Let this be at least
one bright star on the clouded sky of US's foreign policy.  -30-
-----------------------------------------------------------------------------------------
Walter Prochorenko is a businessman who spent several years
working in Ukraine. He lives in New Jersey and he has recently
been working on an advanced educational degree which he
has just finished. prowalt@yahoo.com
====================================================
6.                                  MURDER IN KYIV
               Myroslava Gongadze attempts to discover the truth
PBS's Frontline/WORLD on Ukraine and Gongadze Case, October 25th.

The Action Ukraine Report (AUR), Issue 588, Article 6
Washington, D.C., Thursday, October 20, 2005

WASHINGTON - The show "Murder in Kyiv" will air on the Public
Broadcasting Service's (PBS) Frontline/WORLD on Tuesday,
October 25th.  The show takes an in-depth look at political reform
in Ukraine through the lens of the well-known 'Gongadze case.'

The 'Orange Revolution' has finally given Myroslava Gongadze the
chance to return to the country to get answers about her husband's
death.

Frontline/WORLD correspondent Brian Knappenberger not only
follows Myroslava as she attempts to discover the truth in the crime
but also tries to learn if the dramatic changes the country has gone
through live up to the promises of the 'Orange Revolution.'

WETA TV 26 - Washington
CHANNEL 26 Tuesday, October 25, 9:00pm
Maryland Public Television
CHANNEL 67 Tuesday, October 25, 10:30pm
WETA PRIME
   [D] Tuesday, October 25, 9:00pm mpt DT
   [D] Tuesday, October 25, 10:30pm mpt Select
   [D] Wednesday, October 26, 9:00am
====================================================
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7.UKRAINE'S DEPUTY PROSECUTOR-GENERAL SAYS SECURITY
        SERVICE LET SUSPECTED KILLER OF GONZADZE SLIP
                     "President admits: SBU frightened Pukach off"

INTERVIEW: with Deputy Prosecutor-General Viktor Shokin
Segodnya, Kiev, Ukraine, in Russian Tue, 18 Oct 05; p 7
BBC Monitoring Service, UK, in English, Thu, Oct 20, 2005

The Security Service of Ukraine (SBU) in June botched the efforts to get
hold of fugitive police general Oleksiy Pukach in Israel, Deputy
Prosecutor-General Viktor Shokin insists in an interview with Oleksandr
Korchynskyy.

Pukach is suspected of having killed journalist Heorhiy Gongadze in 2000.
Shokin says he offered help to the SBU, but they said they would cope
themselves. He, however, notes that there were no official messages from
Israel on Pukach's whereabouts.

The following is the text of the interview published under the headline
"President admits: SBU frightened Pukach off" in the Ukrainian daily
Segodnya on 18 October; subheadings have been inserted editorially:

Deputy Prosecutor-General Viktor Shokin, who has been removed from the
investigation, comes up with the same theory [echoing the article's
headline]. How did the situation develop before and during Security Service
of Ukraine [SBU] investigators' trip for Pukach to Israel?

                                 WHO IS TO BLAME?
Ukrainian President Viktor Yushchenko's interview for the BBC was published
on Sunday [16 October]. In the interview, the president dropped a broad hint
as to who was personally to blame for Pukach still staying at large.

Quote: "Unfortunately we don't have one of the organizers of the murder (of
Gongadze - author) in the territory of Ukraine today due to certain actions,
including by the previous leadership of the Security Service of Ukraine. But
he is there.

We know where he is and we shall get him back to Ukraine with international
assistance." Who else could the words refer to but Pukach?

Nonetheless, let us get back to the theme started by our newspaper of
catching Pukach in Israel. Some media came up with a theory last week which
they had probably heard from a team of SBU investigators led by the then SBU
deputy head Andriy Kozhemyakin who were departing for the Promised Land
on 18 June.

(Let it be recalled that Segodnya published a theory, essentially confirmed
by the president, that the fugitive general had been frightened away by that
infamous and noisy trip of SBU officers.)

It is being stated again that Deputy Prosecutor-General Viktor Shokin is to
blame for all that because he "leaked" information to our newspaper just to
let Pukach flee. The Prosecutor-General's Office allegedly learned about the
voyage only towards the night of 22 June and "leaked" the information there
and then.

Segodnya carried the sensational material on the 23rd [of June]. We have
decided to ask Shokin himself about his view of how all that was happening.
                             DEPUTY PROSECUTOR'S STORY
[Shokin] On 21 or 22 June (now I cannot say for sure), Prosecutor-General
Svyatoslav Piskun called me and said: "Come round to me". I called at his
office. There was SBU head [Oleksandr] Turchynov.

He said that a team of his officers had left for Israel to get Pukach and
that they were working there. I said that I had known that for more than one
day. For my part, I asked Turchynov: Do you know that I discussed this
subject with your subordinate Kozhemyakin as far back as Saturday, 18 June?

He said: No, I don't. Then he went on to the effect that our
Prosecutor-General's Office should urgently address a letter to Israel's
prosecutor-general for the Israelis to detain Pukach. I said: "It would be
illegal; a complete package of documents is needed, from beginning to end.

The Israelis will not respond to a letter". Yet Turchynov insisted on a
letter. Okay. I went to my investigators, sat down and dictated a letter off
the cuff in five minutes. I did not try much to remember its content as I
knew it was all in vain.

I brought the letter to Piskun's office, he signed it, we gave it to
Turchynov and he left... [ellipsis as published] Later on it came to them
that they should have taken along documents proving Pukach's guilt.
Otherwise the Israelis would not detain him or carry out any operational
efforts.

Thus our investigator Roman Shubin left for Israel with those proofs in the
early hours of 24 June. It was such ironclad evidence that an Israeli
representative described it as "pure gold", Shubin reported later on. So the
Israelis had no doubts about Pukach's involvement in the murder of Gongadze
left after looking at the evidence.
                              SBU REJECTED HELP OFFER
[Korchynskyy] Did Shubin say Pukach was or was not in Israel?

[Shokin] It was unclear. The information I originally received, I emphasize,
earlier than SBU officers, was to the effect that Pukach might possibly be
in Israel. Possibly. Still it was unknown where precisely he was or whether
any work on him was under way.

The SBU received similar information later that day. I don't know whether it
was from the same source or not. Yet I learned that SBU officers were going
to depart right away and without letting us know.

I called Kozhemyakin there and then while he was in Kiev. I was calling from
my mobile phone: it was Saturday, 18 June, and I was at my dacha. I said:
"Andriy, I know that you are going to another country on the issue of the
person in question". He was stunned and kept silent because he didn't think
I could know anything about the trip.

I went on: "Let me give you a package of documents on Pukach so you can work
quietly there". He kept silent and then said: "Thanks but we have agreed on
everything on our own, we need nothing". Still I tried to persuade him but
all to no effect... [ellipsis as published]

After talking to him, I immediately dialled Piskun's phone and reported on
that situation. "Did you offer our help?" Piskun asked me. "Yes but they
refused," I said, meaning: what could be done about it...? [ellipsis as
published]

[Korchynskyy] Would it have taken you a long time to prepare that package?

[Shokin] Not at all. I would just have gone to the office and summon Roman
Shubin: we had ready-made duplicates of the documents, video records and
other things. We would have handed them over... [ellipsis as published]

So if Pukach really was in Israel, he could have been detained on the basis
of our evidence. In the meantime, we would have prepared and sent them
documents for extradition. We have no extradition agreement with Israel but
those documents would have enabled us to expect a settlement to the issue.

Yet SBU officers decided to act on their own. As a result they did not cope
all the same but they lost time and maybe frightened Pukach away. This is
the way it was.

Speaking about the official aspect of the matter, we were not in the picture
at the Prosecutor-General's Office because we had never got any official
documents about that trip from the SBU.

Nor did we get any documents from Israel, whether Pukach was or at least
supposed to be there. Even Turchynov's visit ended in talk... [ellipsis as
published]
                                     INTERPOL THEORY
[Korchynskyy] According to some recent publications, Kozhemyakin has
gone with documents for Pukach's extradition received from the Interpol
National Central Bureau [NCB]. Is it true? Speaking both in real and
theoretical
terms, may the Interpol NCB hand over extradition document or is it an
exclusive right of the Prosecutor-General's Office?

[Shokin] I don't know what Kozhemyakin received there. You are right in
saying that there may be no documents for extradition at the Interpol NCB.
Only the Prosecutor-General's Office has the right to prepare them.

The Interpol NCB has documents for retrieval, all kinds of photos,
investigator's resolution indicting Pukach, a court resolution on Pukach's
detention and delivery to court [which is needed] for issuing a warranty,
for instance, to arrest him. I think that is all that we sent to the
Interpol NCB on Pukach.

On the basis of those documents, Interpol will put up the so-called "red
card". It will let every state associated with Interpol know that Mr
So-and-So is wanted on such-and-such charges and ask them to inform us
if the person turns up... [ellipsis as published]

Still this is not enough for detention not only for the Israelis but for
anyone else. I emphasize: the request is just to inform. Then we will give
them that very package of guilt-proving documents and write at the end
that no political reprisal is involved and that this is a purely criminal
offence... [ellipsis as published]

[Korchynskyy] How do you like the theory that the Israelis did detain Pukach
but secretly from us; that they got necessary information out of him, gave
it to the Russian FSB [Federal Security Service] and still hold the fugitive
general there as a "hook" for Ukraine's political elite?

[Shokin] I think it is highly unlikely. It would be a blatant violation of
all international standards and it would surface some day anyway. How
could one be whitewashed after such things?  -30-
======================================================
8.FEAR SPREADS IN UKRAINE AS BIRD FLU ARISES IN NEIGHBORS

Natasha Lisova, Associated Press (AP), Hazhyn, Ukraine, Thu, Oct 20, 2005

HAZHYN, Ukraine - Bird flu hasn't reached Ukraine, but in this village
where chickens and geese run freely, residents are debating what to do if
it reaches them. They fear it's only a matter of time.

In the past week, the deadly H5N1 strain of avian flu appeared in Romania,
which borders Ukraine to the south, and advanced into the European part of
Russia, which lies to Ukraine's east.

Slaughtering their flocks would be a big blow; domestic birds are an
important source of income and food in this impoverished ex-Soviet
republic. So far, there is no need.

But Ukraine remains on high alert. On Tuesday, an infected swan was
discovered in northern Romania, just 20 kilometers (12 miles) from Ukraine's
border.

The H5N1 strain has killed 60 people in Asia, and scientists worry that it
will eventually mutate into a strain against which humans have no defenses,
setting off a pandemic.

This country of 47 million has already strengthened controls over the
poultry industry, banned wild bird hunting and urged Ukrainians to keep
their birds inside - advice few appeared to be heeding.

In addition to fears of a human pandemic, Ukrainians were also concerned
about what they would eat. Poultry is often the only meat that many
Ukrainians can afford.

Lyudmila Muharskay, a top health official, said the Health Ministry was
pushing to increase the country's stockpiles of ordinary anti-flu medicine.
Ukrainians in areas considered high-risk, near the Romanian border and near
wet lands where migratory birds are often found, have already started
receiving vaccinations.

Such shots are given to prevent more-common flustrains so that if a person
gets infected with the bird virus, there is no human flu strain inside the
body to mix with and create a dangerous hybrid.  -30-
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9.         UKRAINIAN VETERINARY CHIEF RESIGNS AFTER
                                    BIRD FLU CRITICISM

Interfax-Ukraine news agency, Kiev, in Russian 1127 gmt 20 Oct 05
BBC Monitoring Service, UK, in English, Thu, Oct 20, 2005

KIEV - The head of the state department for veterinary medicine, Petro
Verbytskyy, has tendered his resignation.

"The resignation request has indeed been submitted," the Interfax-Ukraine
news agency has learnt at the Ministry of Agrarian Policy.

Verbytskyy wrote the letter of resignation of his own free will, providing
no reasons. The Cabinet of Ministers should take a decision on
Verbytskyy's resignation.

[Agricultural Policy Minister Oleksandr Baranivskyy has recently criticized
Verbytskyy for what he described as the state veterinary service's failure
to take necessary precautions against bird flu - see Kommersant-Ukraina,
Kiev, in Russian 19 Oct 05.]  -30-
-------------------------------------------------------------------------------------------
FOOTNOTE:  Petro Verbytskyy has been a very controversial head
of the state department of veterinary medicine.  He used several of
his 'unusual' and 'new' biological theories about the way the U.S.
processes poultry meat and its possible impact on the human body
to effectively stop the import of U.S poultry into Ukraine for several
years.  Many persons who worked on this problem felt the real reason
the import of poultry was stopped did not have anything to do with
the 'unusual' and 'new' biological theories promoted and effectively
used by Petro Verbytskyy to stop the import of U.S. poultry. EDITOR
=====================================================
10. EX-OWNERS OF UKRAINIAN STEELMAKER SUE IN US COURT

Associated Press (AP), New York, NY, Thursday October 20, 2005

NEW YORK  - The former owners of Ukrainian steelmaker Kryvorizhstal
have sued the Republic of Ukraine, seeking to stop the resale of the steel
mill next week.The lawsuit, filed in U.S. District Court in Manhattan on
Oct. 14, was brought by a U.S.-based investment group, Addox Corp.

It said a significant ownership interest in nine companies that bought the
steelmaker in June 2004 was held by businessmen Rinat Akhmetov and Viktor
Pinchuk, the son-in-law of former Ukrainian President Leonid Kuchma.

Addox holds 10 percent of the American Depositary Receipts of the
Nozhnedneprovsk Pipe Plant, which in turns holds 10 percent of Industrial
Metallurgical Union, which Pinchuk and Akhmetov used to buy Kryvorizhstal.

Pinchuk and Akhmetov paid $800 million. The mill was renationalized this
year under the new administration and there are three registered bidders for
a new auction that will take place Monday.

In its lawsuit, Addox said the government of Ukraine and the Industrial
Group Consortium, which was the losing bidder when the plant was sold
last year, colluded to secure a Ukrainian court ruling declaring the sale
illegal.

The lawsuit charged that the government sought to seize the plant in
retribution for public statements made by Akhmetov during the 2004
elections and because of political positions taken by Akhmetov and
Pinchuk. -30-  [The Action Ukraine Report (AUR) Monitoring Service]
=====================================================
11.     UKRAINIAN PRESIDENT DISCUSSES INVESTMENT IN
                         GAS EXPLORATION WITH SHELL

One Plus One TV, Kiev, in Ukrainian 1630 gmt 18 Oct 05
BBC Monitoring Service, UK, in English, Tue, Oct 18, 2005

KIEV - [Presenter] One of the world's oil and gas giants has announced that
it intends to increase its presence on the Ukrainian market. Shell wants to
invest up to 100m dollars a year in geological exploration for gas deposits
in Ukraine.

President Viktor Yushchenko had talks about this during his visit to London
[17-18 October]. Yushchenko has already returned to Kiev. Rate
Shevchenko has the details.

[Correspondent] It has never been easy for Ukraine to maintain active
contacts at the highest political level with Britain. The last official
visit by a Ukrainian head of state was 10 years ago.

[Passage omitted: background; Yushchenko meets Queen Elizabeth II, Prime
Minister Tony Blair]

The position of Tony Blair, who sets the rules of the game in the EU during
the British presidency, will determine whether Kiev achieves any successes
in relations with Europe before the Ukraine-EU summit in December. This
was the main topic in the talks between the countries' foreign ministers,
Jack Straw and Borys Tarasyuk.

[Tarasyuk] There are some fairly specific issues that should be announced
either before the summit or during the summit. They include granting Ukraine
market economy status, the start of talks on liberalizing the visa regime,
possibly a free-trade zone between Ukraine and the EU. Given that these
issues were not resolved for years, I think this is a breakthrough.

[Correspondent] Viktor Yushchenko brought home from London good
prospects that one of the world's leading oil and gas companies, Shell,
will increase its presence on the Ukrainian market.

The head of its extraction unit presented a project for investment in
geological exploration for gas deposits in the Black Sea and in the
Donetsk-Dnieper basin.

[Yushchenko] I am currently having discussions with the biggest British and
European company. They will come. New investors should give answers to
those questions that we are unable to answer with our own national
resources. This was the subject of our agreement.

In a few days, we will hold a meeting with [state oil and gas company]
Naftohaz Ukrayiny, the Environment Ministry and other Ukrainian ministries
in order to develop an action plan for this project.

[Malcolm Branded, captioned as Shell executive director, in English overlaid
with Ukrainian translation] We are ready to invest in the programme for
developing gas in Ukraine as soon as the necessary exploration licenses are
issued.

We will be glad to invest 50m-100m dollars a year, with the possibility of
increasing sum if we are successful.

[Correspondent] The final event on Viktor Yushchenko's first visit to
Britain was a meeting with representatives of the Ukrainian diaspora.
=====================================================
12. UKRAINE MAY LIMIT FOREIGN ACCESS TO OFFSHORE FIELDS

Interfax, Kyiv, Ukraine, Wednesday, October 19, 2005

KYIV - The Ukrainian parliamentary committee for the fuel and energy
complex and for nuclear policy and safety has supported a draft
law submitted by the communist faction to restrict access by foreign
investors to oil and gas fields in Ukrainian territorial waters.

The draft law proposes to issue licenses for the development of offshore oil
and gas fields only to companies in which 60% of charter capital is state
owned or has been transferred to the charter capital of joint stock or
holding companies in which the state owns a controlling stake.

The committee has recommended to parliament to pass the draft law in its
first reading.

According to an explanatory note to the document, the aim of the draft law
is to make it possible to provide offshore development rights exclusively to
companies in the state sector, to ensure additional guarantees that state
interests will be protected during the development of strategic natural
resources.

The only company in Ukraine that is developing fields in the Black and Azov
seas is the company Chernomornaftogaz, which is 100% owned by the state
company Naftogaz Ukrainy.

Chernomornaftogaz and the U.S. company Hunt Overseas Oil Company signed
a protocol of intent in November 2003 for the start of joint work to explore
and develop oil and gas fields in the deep waters of the Black Sea.

In June 2005 Naftogaz Ukrainy and Hunt Overseas Oil Company signed a
memorandum on the joint geological exploration of Ukrainian prospects. This
joint work is expected to start in 2005.

According to the protocol, Hunt Overseas Oil Company will develop a 12,000
square km zone of the deep water section of the Black Sea, or 10% of
Ukraine's deep water Black Sea territory.

Hunt Overseas Oil Company is the largest private oil and has company in the
U.S., and has operations in the U.S., Canada, Yemen and Peru. -30-
Source: Daily News Bulletin; Moscow - English
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13.  UKRAINE BANKS RAISE LOAN RATES TO SECURE THEIR
                     RESOURCES FROM POLITICAL RISKS
         Price of credit resources rising due to nearing parliament vote

ANALYSIS: Roman Bryl, Ukraine Analyst &
Andrew Fantasies, CIS Senior Analyst
IntelliNews-Ukraine This Week
Kyiv, Ukraine, Monday, October 17, 2005

KYIV - Prices of credit resources on the interbank market rose 3-fold last
week. This caused commercial banks to appeal to National Bank of Ukraine
to interfere in the situation. NBU's reluctance to make interventions and
outflow of hryvnia are the main factors of the spike-up.

Last time loan rates surged in Aug 2005---

During Thursday-Friday Oct 13-14, the overnight credit rate jumped to
16-20%. The same trend was observed regarding long-term credit resources.
Thus, rates on 30-day credits surged 2-fold also to 16-17%.

The last similar surge happened in August 2005 due to NBU raising mandatory
reserve requirements for commercial banks.

NBU's sudden ceasing of currency interventions on the interbank market also
drove up the cost of credit resources then. Loan interest rates hit 16% in
August.

        Tender on selling 93.02% stake in Kryvorizhstal takes out at
                          least UAH ban from banking sector---

The current rate hike was caused not only by absence of NBU's currency
interventions or seasonally higher demand for FX currency. Contributing to a
major extent was the privatization of one of the largest Ukrainian
metallurgical plants Kryvorizhstal.

Funds in UAH that were transferred to the accounts of the state property
fund as a pre-deposit for participating in the tender exceed about 2-fold
the short-term liquidity of the interbank market. The pawn makes up 10% of
the initial price of Kryvorizhstal's stake, determined by SPF.

To remind you, the price is set at UAH lob (USD ban). Thus, the pawn
amounts to UAH 1bn (USD 200mn). There are 10 bidders that made payments to
SPF. About 70% was paid in UAH. Thus, about UAH ban left the Ukrainian
banking system within the last ten days.

After the tender takes place, state property fund will return pawns to the
losers. But we have some doubts about whether the return of the funds would
lower credit interest rates significantly.

Situation on interbank market also influences UAH/USD rate ---

Currently on the interbank market we can witness a huge misbalance between
demand and supply of foreign currency. In early October UAH appreciated vs.
USD from 5.055 to 5.04.

Last week the trend was reversed. On Thursday, Oct 13 UAH weakened by
UAH 0.02. Dealers say this was caused by FX inflow from the placement of
sovereign EUR 600mn Eurobonds.

They claim it also contributed to the spike-up of interbank loan interest
rates. Another reason that influenced the cost of credit resources were
seasonal FX rate fluctuations. Traditionally in autumn business activity
intensifies, boosting demand for financial resources.

But we should note that inflow of FX (and not even USD, but EUR) would have
weakened EUR. Perhaps the government already converted the proceeds into
UAH. The state budget needs funds aplenty to fulfill various social
obligations taken on during last year's turbulent presidential elections.

Shortage of UAH also caused by lack of funds in state budget ---

To further illustrate the problem, another important factor that influenced
the price of credit resources was payments to the state budget that had been
initiated by the state treasury. The budget suffers lack of funds for social
payments, as we said.

State pension fund, for instance, faces a UAH ban deficit. State authorities
are thus pushing corporates to provide all necessary payments in full. This
also draws UAH off the interbank market.

USD surplus exists on interbank market ---

We cannot exclude that the rate hike has a speculative background.
Attracting funds from NBU at a 15% interest rate, banks receive the
opportunity to lend their own funds to third parties at the same 15% rate
(or even higher, depending on the borrower).

They justify the higher price of credit resources by the overall situation
on market. On Oct 13 banks borrowed at 15%. The next day when the liquidity
shortage eased slightly, banks borrowed at 12%.

The rate jump results in a cheaper USD, in turn creating a USD surplus. That
is favorable for local importers and for banks with excess liquidity. These
banks can place their funds at higher interest rates.

Price of credit resources rising due to nearing parliament vote ---

Most importantly, the lurch-up is not a temporary event. The cost might have
reached a level that would stay for the next half-year.

The rates are unlikely to fluctuate in a wide range, in our view. The cost
of credit resources will not decrease to a 5% rate where it stood just a
month ago. But it will not hit 20%, either, if only temporarily due to
one-off disturbances.

Now banks are trying to attract funds for the period that extends beyond the
general elections slated for Mar 2006.

This way banks intend to secure their resources from political risks. We
expect that in the next 6 months the interbank loan rates will fluctuate
between 7% and 15%.  -30-  [Action Ukraine Report Monitoring Service]
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14.             U.S. GIVES UKRAINE EQUIPMENT TO FIGHT
                                    HUMAN TRAFFICKING
                      Cars and office equipment worth USD 135,000

Ukrainian News Agency, Kyiv, Ukraine, Thu, October 20, 2005

KYIV - The U.S. has granted Ukraine's Interior Ministry the cars and office
equipment worth USD 135,000 to struggle against human trafficking. Internal
Minister Yurii Lutsenko and U.S. Ambassador to Ukraine John Herbst signed
an agreement on equipment granting on Thursday.

According to the agreement, the Ukrainian subunits for war on human
trafficking received 10 cars (two Chevrolet and eight BAD-21099 cars), 31
computers (including six laptops), 31 printers (including six portable ones)
and consumables.

Herbst noted that in April the U.S. gave the Interior Ministry equipment
worth USD 110,000 for the same purpose. He said that the department for
war on human trafficking of the Federal Investigation Bureau of the U.S.
transferred this equipment.

As Ukrainian News reported earlier, in April, the United States handed over
computer equipment worth USD 100,000 to Ukraine's human trafficking
police.  -30-  [The Action Ukraine Report Monitoring Service]
=====================================================
15.       UKRAINE PARLIAMENT REJECTS CATTLE EXPORT
                          BILL NEEDED FOR WTO ENTRY

Interfax-Ukraine news agency, Kiev, in Russian 1143 gmt 18 Oct 05
BBC Monitoring Service, UK, in English, Tue, Oct 18, 2005

KIEV - The Supreme Council [parliament] of Ukraine has rejected a bill
offering to cut export duty on live cattle and leather.
This bill is a part of the legislative package required for the country's
accession to the WTO.

The bill on the amendments to the law on export duty on live cattle and
leather, which was submitted by the Cabinet of Ministers, was backed
by 114 of 398 MPs registered in the chamber.

Deputies did not agree to send this bill for a repeat first reading. Only
108 MPs voted in favour, and thus the bill is considered rejected.
[Passage omitted: details of the bill]  -30-
======================================================
15.               THE JUDICIARY AND THE RULE OF LAW
                                  United States and Ukraine
     Election or Appointment of Chief Judges - A Comparative Analysis

By Bohdan A. Futey, Zerkalo Tyzhnia
Kyiv, Ukraine, Saturday, October 15, 2005

 Under the judicial system in the United States, we have both federal and
state courts with corresponding federal and state judges.  In the United
States, becoming a judge represents the professional achievement of a legal
career.  Being a judge means holding one of the most respected positions in
American society.  Judges are afforded respect because they respect
themselves.

Being selected as Chief Judge, however, is equated with a promotion to an
even higher elevated status; a position whose role in the American judiciary
is commonly referred to as "primus amongst the pares," i.e., first among
equals.

Despite this designation, the Chief Judge's responsibilities are mostly
ceremonial and administrative - - coordinating activities at the court,
scheduling meetings and organizing conferences, as well as representing the
court at external functions and events.

Contrary to popular belief, the Chief Judge does not exercise control over
the court's docket and does not assign cases to particular judges. The role
of the Chief Judge nevertheless is an important one and, therefore, a
comparison between the manner in which Chief Judges are selected in the
United States and Ukraine is warranted.

 The United States Constitution provides that the President shall have the
power to nominate and, with the advice and consent of the United States
Senate (Senate), appoint federal judges. [1]

Following the successful completion of the confirmation process, "[t]he
judges, both of the supreme and inferior courts, shall hold their offices
during good behavior and shall, at stated times, receive for their services
a compensation, which shall not be diminished during their continuance in
office." [2]

These protections of life tenure and non-reduced salary are guaranteed by
the Constitution so that federal judges will not fear losing their jobs and
receiving pay cuts if they make a decision that is unpopular with the
President or Congress.  This protected freedom to make decisions that are
politically or socially unpopular is one of the imperatives of our
democracy.

 In addition to Article III courts of general jurisdiction, the Constitution
authorizes the Congress to establish other federal courts to help carry out
aspects of the legislative power established by Article I of the
Constitution.  Federal judges under Article I of the Constitution are also
appointed by the President with the advice of the Senate.

They serve for a fixed term of fifteen years.  Their judicial independence
is guaranteed through legislation which provides senior judicial status and
full retirement benefits at the end of the term if the judges are not
reappointed by the President. [3]

 Although Article III federal judges hold office during good behavior, they
may be removed from their positions against their will by impeachment and
conviction of "treason, bribery or other high crimes and misdemeanors." [4]

Impeachment is a constitutional process whereby the United States House of
Representatives (House) may charge officials of the government suspected of
misconduct with "malfeasance of office" for a trial before the Senate. A
federal judge can be removed only if the Senate finds him guilty by
two-thirds vote.  Impeachment is a procedure which is rarely invoked.

 In comparison, the Constitution of Ukraine authorizes the President to
appoint judges for their initial five-year term. [5] The Verkhovna Rada has
the power to elect judges for life thereafter. [6]

To assist in the appointment process, the Constitution of Ukraine
establishes the High Council of Justice, which is composed of members of all
branches of government and is charged with the "submission of a proposal
regarding the appointment" of judges. [7]

Moreover, concerning the Constitutional Court of Ukraine, the Constitution
calls for eighteen judges, with the President, the Verkhovna Rada, and the
Council of Judges each appointing or electing six. [8]  Judges of the
Constitutional Court are "appointed for nine years without the right of
appointment to a repeat term." [9]

Lastly, the Constitution of Ukraine enumerates the instances where a judge
is dismissed from office. [10]

At the federal level, a judicial system which allows the President to
appointment judges for life with confirmation by the Senate is preferable to
a system which empowers the President to only appoint judges for an initial
five-year term, with the mere possibility of subsequently being elected for
life by the Parliament.

The latter system evidences the smallest degree of judicial independence
because the judges only hold their office for a fixed term and then must
stand before the Parliament for election.  Once the judge's five-year term
has expired, the Parliament may or may not vote extend the judge's term
permanently.

This sequence of events gives rise to concern.  The initial five-year term
may, in actuality, serve as an audition for the legislature.  Any judges who
wished to be re-appointed would be pressured to conform their decisions
toward the prevailing political sentiment of the Parliament at that time.

As previously stated, it is one of the cornerstones of a functioning
democracy to permit judges to render decisions without fear of retribution.
It would, therefore, be beneficial to have judges appointed for life at the
outset.

 In addition to their respective confirmation processes, both the Ukrainian
and American judicial systems also designate the manner in which the Chief
Judge or Chairman of each court should be selected.

To begin, "[t]he Chairman of the Supreme Court of Ukraine is elected to
office and dismissed from office by the Plenary Assembly of the Supreme
Court of Ukraine by secret ballot, by procedure established by law." [11]

Further, "[t]he Chairman of the Constitutional Court of Ukraine is elected
by secret ballot only for one three-year term at a special plenary meeting
of the Constitutional Court of Ukraine from among judges of the
Constitutional Court of Ukraine." [12]

While the Chairman of the Constitutional Court and Supreme Court are elected
by their peers, the Chief Judges of lower courts in Ukraine are appointed by
the President.

 The judicial branch in the United States likewise employs several different
approaches to selecting a Chief Judge. [13]  At the federal district court
and appellate circuit court (courts of appeals) levels, the criteria for
attaining and relinquishing the status of Chief Judge are virtually
identical.

With the exception of several limited caveats, a judge assumes the position
of Chief Judge when he or she "in regular active service is senior in
commission of those judges who (A) are sixty-four years of age or under;
(B) have served for one year or more as a circuit [or district] judge; and
(C) have not served previously as chief judge." [14]

The Chief Judge's term is limited to seven years and under ordinary
circumstances cannot extend beyond the date the judge "attain[s] the age of
seventy years." [15]

The approach utilized by the federal district courts and courts of appeals
is based on seniority without regard to the political composition of the
court or preferences of the individual judges.  Politics are, therefore,
completely removed from the equation.

Several additional approaches to selecting Chief Judges have also been
sanctioned in the United States.

First, the Chief Justice of the United States Supreme Court is nominated by
the President and the nomination must be confirmed by the Senate.

Second, with respect to the United States Court of Federal Claims, an
Article I court, the United States Code provides that "[t]he President shall
designate one of the judges of the Court of Federal Claims who is less than
seventy years of age to serve as chief judge."16  Once designated, the Chief
Judge of the Court of Federal Claims serves at the pleasure of the
President, but may not serve beyond seventy years of age. [17]

Third, the Chief Judge of the United States Tax Court, also an Article I
court, is elected by his or her peers for a two-year term.  Specifically,
"the Tax Court shall at least biennially designate a judge to act as chief
judge." [18]

Fourth, federal district court judges in a particular district are
responsible for selecting the Chief Judge of the United States Bankruptcy
Court for that district. [19]  The vote requires a simple majority; however,
where a majority consensus cannot be obtained, the Chief Judge of the
federal district court is empowered to break the deadlock and to make the
designation. [20]

In sum, the most prevalent procedure in the United States for selecting a
Chief Judge at the federal level is a tenure-based system whereas, apart
from the Constitutional Court and the Supreme Court of Ukraine, which are
required by the Constitution of Ukraine to select their respective Chairmen
through secret ballot elections, the majority of Chief Judges of lower
courts in Ukraine are appointed by the President.

Whether the President of Ukraine should retain the power to appoint these
Chief Judges is currently a matter of debate.  If the President appoints the
Chief Judge, so the argument goes, the Chief Judge will have the authority
of the Office of the President behind his or her selection and be able to
effectively execute his or her duties.

Critics of this approach, however, counter that appointment by the President
permits the Chief Judge to yield excessive influence over the court's
internal affairs and decisions.

 To remove any appearance of impropriety and to avoid political
partisanship, those responsible for judicial reforms in Ukraine should
consider adopting the tenure-based system used in the United States for the
selection of Chief Judges of lower courts. [21]

The implementation of such a system would reduce and minimize the
opportunity for external pressure.  In the event the tenure-based system is
not adopted, Ukraine should consider instituting comparable procedures to
those currently in place at the Constitutional Court and Supreme Court.

Stated another way, lower court judges should elect their Chief Judges
through secret ballots.  Although the tenure-based system and election
system possess obvious advantages, a compromise arrangement at a minimum
could be instituted, perhaps, in the event both procedures are rejected.

The compromise, while not originating completely in any of the systems
discussed above, does incorporate certain aspects contained therein.

 The judges of their respective courts would compile a list of two judicial
candidates who possess the qualifications to serve as Chief Judge.  The
judges would make their selections through either open deliberations or
through secret ballots.

Once a final consensus has been reached on these two judges, the
recommendation would be forwarded to the President of Ukraine.  The
President would then appoint the Chief Justice from the recommendations put
forth by the judges.

Although in practice the compromise is neither as transitionally fluid nor
as internally independent as the tenure-based system, it does provide a
comprehensive system of checks and balances to ensure that the process of
selecting the Chief Judge, and the powers and privileges which accompany
that position, are not subject to political manipulation and abuse.
----------------------------------------------------------------------------------------
Bohdan A. Futey is a Judge on the U.S. Court of Federal Claims in
Washington, DC, appointed by President Ronald Reagan in May 1987.
Judge Futey has been active in various Rule of Law and Democratization
Programs in Ukraine since 1991.  He served as an advisor to the Working
Group on Ukraine's Constitution, adopted
--------------------------------------------------------------------------------------
                                           FOOTNOTES:
1 U.S. Const. art. II, § 2, cl. 2.
2  Id. art. III, § 1.
3  At the state level, the commission nominating method, i.e., a so-called
"merit plan," is used for at least some courts.  Despite the spread of this
commission nominating system in the last half of the twentieth century and
the continual campaign in its support, most states still choose judges at
popular elections.  In addition, two states, Virginia and South Carolina,
chose their judges by election in the state legislature.  Further, in cases
of vacancies, state judges are appointed by the Governor.
4  Id. art. II, § 4.
5  Ukr. Const. chap. VIII, art. 128.
6  Id. chap. IV, art. 85.27; Id. chap. VIII, art. 126, 128.
7  Id. chap. VIII, art. 131.
8  Id. chap. IV, art. 82.26; Id. chap. V, art. 106.22; Id. chap. XII, art.
148.
9   Id. chap. XII, art. 148.
10 Id. chap. VIII, art. 126.
11 Id. chap. VIII, art. 128.
12 Id. chap. XII, art. 148.
13 See also Bohdan A. Futey, Selection, Training and Discipline of Judges,
Legal Seminar on the Rights and Responsibilities of the Judiciary and the
Prosecutors (Kyiv, Ukraine 1993).
14 28 U.S.C. § 45(a)(1)(A)-(C); Id. § 136(a)(1)(A)-(C).  The United States
Code sets forth the procedures to be followed in the event that none of the
judges on the court meet the primary requirements for serving as Chief
Judge.
15 Id. § 45(a)(3)(A), (C); Id. § 136(a)(3)(A), (C).
16 Id. § 171(b).
17 Id.
18 26 U.S.C. § 7444(b).
19 28 U.S.C. § 154(b).
20 Id.
21  Given the emphasis in the United States on prohibiting a Chief Judge
from holding that office once he or she has reached the age of 70, it may be
worthwhile to reconsider the mandatory retirement age for judges in Ukraine,
which is 65.  Compare 28 U.S.C. § 45(a)(3)(A), (C), and 28 U.S.C. §
136(a)(3)(A), (C), with Ukr. Const. chap. VIII, art. 126(2).
=====================================================
          Power Corrupts and Absolute Power Corrupts Absolutely.
=====================================================
16.        "A REAL WAR ON THE BORDER: CONTRABAND IS
                        COMING THROUGH IN CARAVANS!"
            Contraband runners practically feel they run Luhansk Region

By Oleh Prytykin, Segodnya, Kiev, in Russian 19 Oct 05; p 8
BBC Monitoring Service, UK, in English, Thu, Oct 20, 2005

Ukraine's eastern Luhansk Region is a paradise for contraband from Russia,
a Ukrainian daily has said. There are hundreds of roads without border
checkpoints, along which heavy lorries run to Russia and back at night.

But the Security Service of Ukraine said the flow of contraband through the
Russian-Ukrainian border in Luhansk Region stopped recently. Luhansk
governor Oleksiy Danylov ordered shooting at lorries carrying contraband,
the paper said.

The following is the text of the article by Oleh Prytykin, entitled "A real
war on the border: contraband is coming through in caravans!", published in
the Ukrainian newspaper Segodnya on 19 October, subheadings have been
inserted editorially:

The governor of Luhansk Region is calling for the use of arms against
contraband runners. The daily take of just one group [of smugglers]
is...[ellipsis as published] 1m hryvnyas [about 200,000 dollars]!

Our newspaper reported in great detail on the tragedy near Krasnodon when
a lorry with contraband sugar drove forward and two traffic police were
killed.

On the scene, your Segodnya correspondent came to the conclusion that what
happened was the result of a big problem: contraband runners practically
feel they run Luhansk Region.
                                     TWO POLICEMEN KILLED
The suspect in running over the traffic police automobile in which Andriy
Ulychev and Yuriy Chereban were on duty was detained on 28 September -
the day after the tragedy. So far, we only know that he is a citizen of
Russia. Could the hit have been intended?

No braking marks have been found at the site. The front-wheel drive Kamaz,
a former army all-terrain vehicle, sits very high.

Maybe the driver did not mean to crush the police car, but simply bump it
off the road. But it fell into a pit and the truck crushed it underneath.
But the chief of the Luhansk regional department of internal affairs,
Mykhaylo Prytula, insists: there was definitely an intentional hit!

The first blood in this border region was spilt two years ago, in September
2003: when a car was stopped with contraband, customs serviceman Serhiy
Bilohlazenko died. The former leaders of the regional state administration
and law enforcement agencies did practically nothing in reaction to this
death.

But the death of Cobra [special police task force] officers Andriy Ulychev
and Yuriy Chereban provoked a wide response. After all, this happened on the
six month of the government programme Contraband Stop! being carried out.

The chairman of the Luhansk state regional administration, Oleksiy Danylov,
immediately said that what happened proved that not all units were carrying
out their responsibilities in the proper way. And he threatened the customs
service with cleansing.

The chief of the Luhansk border patrol detachment, Oleh Medvedchuk, said
the event was a challenge to all law enforcement officers.
                                        TRIMMED PATHS
Border guards have direct responsibility for the fight against contraband -
they and only they guard the borders. The Contraband Stop! programme
envisages the cooperation of all law enforcement agencies, however each of
them operates within the scope of its authority.

"If we open the Criminal Code we see that contraband does not fall under the
investigation of the police", says Mykhaylo Prytula, "customs services,
border guards, the Security Services of Ukraine [SBU] and the tax police are
supposed to fight it. We have to get involved if we find concurrent crimes
such as legalizing contraband goods".

Mykhaylo Prytula says that when police officers work in border areas,
contraband stops being run there.

"In order for us to drive up to the state border, we have to get approval
from the border guards. And from whom do you think the contraband runners
are getting approval? The dirt roads there are worn in so well, that it is
clear caravans are passing through".

The accident which led to the death of the traffic police officers happened
on a road linking Krasnodon and the miner's village Uralo-Kavkaz. It is
about six kilometres straight from the point of the accident to the state
border.

One of the most lively contraband highways in Krasnodon District runs
through this area. The village roads are so worn by big cargo vehicles that
they almost look paved. The question of who is using them is rhetorical.

After all, the residents of the nearest villages do not have huge cargo
lorries in front of their homes. One such road goes through a tunnel under a
railroad grade.

As far as can be seen, its "masters" tend it very well: pot-holes and ruts
are neatly filled in with gravel taken from the bedrock nearby, gutters are
dug in low places where rain collects and in some places drainage pipes are
even laid.

"Various vehicles run through here all around the clock", local shepherd
Andriy says, "Now only at night. But what should people do if there is no
work? Only go to the mines, and then only if they'll take you. But it's easy
to get into contraband. I personally know a man who can set you up."
                       CONTRABAND BUSINESS DESCRIBED
The state border in Luhansk Region is about 750 kilometres long. There are
several hundred villages linking Russia and Ukraine. Border guards dig up
roads, and contraband runners fill them back in.

Some have been engaged in this business for several years and openly say
they do not want to give it up, even if legal work can be found. Although
the take of low-level contraband runners, if you believe them, is not very
much.

For example, the driver of a lorry gets 30 to 50 hryvnyas a trip. In order
to make enough, he has to make several runs a day. In the evening, the
number of taxis increases in border villages. But the taxi drivers are not
interested in clients.

Police officers say they are watchers who observe the movement of law
enforcement officers. Stationary look-out posts are put up at high points
along contraband villages. Sometimes teenagers are on the "watch". The
watchers have mobile telephones and portable radio receivers.

In crossing the border, lorries with contraband unload at unloading bases.
As a rule, these are former warehouses, agricultural workshops or private
buildings. Sometimes goods are loaded right from the lorry into bigger
lorries.

At this point, legalization begins: contraband is given invoices and
certificates and sent to be sold. According to the SBU, nearly 75 per cent
of all contraband comes from Russia to Ukraine and only 25 per cent goes the
other way.

One can judge the volume of sales based on one criminal group the SBU
caught. As related by the regional SBU press service, nearly 1m hryvnyas a
day was taken from legalizing illegally imported oil products, flour and
sugar. The money was turned into cash and after taking out profit, was again
used to purchase contraband.

The result of the Contraband Stop! programme is that turnover for the
"legalizers" has gone down to several thousand hryvnyas a day, but they
continue to work until they are caught.
                         BORDER DEMARCATION NEEDED
Law enforcement agencies criticize the work of the courts, who they believe
are too soft on contraband runners: they do not imprison them, they return
their vehicles and sometimes even the goods.

However, analysts believe harsher measures will not bring significant
results, other than increasing the "wages" on contraband runners.

As is known, the Russian-Ukrainian border is only marked on the map.
Border guards say they can really only fight contraband when the border is
demarcated.

or now, offenders can easily get away from responsibility by saying that
there was no information, that they got off the right road and that there
were no signs!

If the contraband is a small amount, that is, it is not worth more than
1,000 untaxable minimum payments, the runner faces no criminal punishment,
only administrative. Now only contraband worth 166,000 hryvnyas and more is
considered big. Knowing this, runners bring in smaller loads.

If they are caught, the goods are confiscated and that is all. As far as
those organizing the business, there is nothing to catch them on, they are
not crossing the borders.

Regional administration head Oleksiy Danylov says that there are 28
organized crime groups in Luhansk which specialize in contraband.

According to operative data, nearly 100 businesses are engaged in just
legalizing contraband goods and 70 per cent of them pay taxes on the
simplified scale which does not demand a strict accounting of goods.

As on our side, Russia also has loading stations and its own illegal lorry
parks. Locals say that before contraband was protected by the police, by
bureaucrats and by MPs - from local to national. We will not say how it is
now...[ellipsis as published]

GOVERNOR ORDERS USE OF ARMS AGAINST SMUGGLER'S CARS
Near the village of Ilyenka in Stanychno-Luhanske District, over the Derkul
river along which the state border runs, contraband runners built a ford.
They found shallow spots and filled them in with gravel.

Local residents say that every day a petrol lorry drives by accompanied by a
light vehicle. The automobile has a state licence number which locals
already know by heart.

Recently, border troops set up an ambush at the ford, but the lorry did not
come that day. And then it started running again.
SBU officers say that at the present time, contraband activity in the region
has been stopped and that if goods are crossing the border, it is only in
small amounts.

But border troops are certain things will not be quiet for long. They are
putting up signs along contraband routes, digging trenches and setting up
tire traps.

Danylov has called upon those guarding the border to use arms against
contraband violators: not to shoot at people, but at the vehicles. Arms have
been used several times in the region this year - border guards shot and
vehicles stopped.

But no-one can exclude the chance of contraband runners someday answering
with fire, protecting their cargo. They do not intend to give up their
position...[ellipsis as published]

As the issue was in pre-press, it became known that border guards in Luhansk
Region detained two men trying to illegally take nearly 3m dollars in a car
into Russia! Details on page 3.

Note. Since the beginning of the year, 12 criminal cases have been opened in
Luhansk over contraband. The overall worth of the goods involved is more
than 78.1m hryvnyas. Activity at 35 bases has been stopped as well as at 11
warehouses which were used for contraband and 186 automobiles have been
confiscated. -30-  [The Action Ukraine Report (AUR) Monitoring Service]
=====================================================
17. TASK FORCE ON JOURNALISM IN EMERGING DEMOCRACIES
              Report on October 3 -7, 2005 Washington DC meetings

The Action Ukraine Report (AUR), Number 588, Article 17
Washington, D.C., Friday, Octtober 21, 2005

WASHINGTON - The National Press Club, under the patronage of its
President, Rick Dunham, White House correspondent for Business Week and
the chairman of the Task Force on Journalism in Emerging Democracies,
Alla Rogers, conducted an exciting week, October 3-7, of formal discussions
with a group of visiting journalists from Ukraine.

Alla Rogers, a long time club member, and specialist in Ukrainian culture
and liaison for mass media was asked to create the content and be the
executive director of the symposium by Chicago based ICEA - International
Cultural and Education Association, the nonprofit organizer of the Ukrainian
segment of the program.

The symposium entitled "The Role of Mass Media in a Democratic Society -
Freedom of Information, Journalism Ethics and Conflict Resolution," explored
a wide range of issues facing journalists everywhere today.

Especially interesting were the nuances exposing the boundaries between hard
news and advertising, issues of political correctness as it relates to
conflict and conflict resolution, protecting sources and securing multiple
sources for investigative stories, discussions on invasion of privacy and
libel in the context of the law, pressure on mass media from both business
and government and interesting policy analysis discussions.

Several key meetings added a practical dimension to the week of lectures and
Q&A.  Key meetings took place at The Washington Post, Voice of America and
ABC News. At ABC a roundtable discussion with the executive producer of
"Nightline" that included a guided tour of the ABC news operation was
conducted by its Chief of Operations.

The group was also received by US-Ukraine Foundation's Nadia McConnell
at an informal afternoon meeting.  The remainder of the little time left was
spent visiting the city's main points of interest and art collections.

At the conclusion of the program certificates of participation and
congratulation were issued by the National Press Club to each of the
Ukrainian participants

The organizations represented by the individuals that spoke in the order of
appearance at the National Press Club are; Richard Dunham of NPC, Alla
Rogers of Rogers, Douds & Associates, Myron Belkind of AP and George
Washington University, Robert Tinsley of International Center for
Journalism, Larisa Koval, Elena Seitz, Lubov Gorvat of ICEA, Dr. Karina
Korostelina of George Mason University, International Center for Analysis
and Conflict Resolution (ICAR), Morgan Williams of SigmaBleyzer
Emerging Markets Private Equity Investment Group,  Kurt Wimmer of Covington
& Burling, and Richard Murphy of The Center for Strategic and International
Studies.

A broad cross section of news organizations was represented from Ukraine.
They were: IAKUNOV, IEVGEN - Deputy Chief Editor of the national newspaper
"Kyivski vidomosti"; STADILNA, IANA - Chief of Information Center in the
newspaper of  parliament "Voice of Ukraine"; SHVETS, LEONID - Deputy
Chief-Editor of the newspaper "Gazeta po-kievski"; SYNYUTA, OLENA - Deputy
Chief Editor of newspaper "Hrehshatyk"; NALYVAYKO, OLEG- General Director
UNIAN; NATALENKO, TETIANA - Editor of the newspaper "Ye"; VYNOKUR,
YULIYA - Director of TV company "TV-4" -Ternopil

For more information about this and other projects contact Alla Rogers at
allarogers@cs.com.  -30-
=====================================================
          Send in names and e-mail addresses for the AUR distribution list.
=====================================================
18. EDUCATIONAL PRACTICE AND THE MAKING OF CITIZENS
  IN UKRAINE BEFORE AND AFTER THE ORANGE REVOLUTION
     Shevchenko Scientific Society, NY, NY, October 29, 2005, 5 p.m.

LECTURE: By Anna Fournier (Johns Hopkins University)
The Action Ukraine Report (AUR), Number 588, Article 18
Washington, D.C., Friday, October 21, 2005

Washington - Anna Fournier, Johns Hopkins University, will present
the results of her research in her lecture, "Educational Practice and the
Making of Citizens in Ukraine Before and After the Orange Revolution"
at the Shevchenko Scientific Society, 63 Fourth Avenue,between 9th
& 10th St.,New York, NY 10003, USA, at 5 p.m. on Saturday,
October 29, 2005.  -30- [The Action Ukraine Report]
-----------------------------------------------------------------------------------------
Shevchenko Scientific Society, 63 Fourth Avenue
between 9th & 10th St., New York, NY 10003, USA
(tel) 212-254-5130, (fax) 212-254-5239
http://www.shevchenko.org; Anna_Fournier@hotmail.com
=====================================================
19.           U.S.-UKRAINIAN INVESTMENT SYMPOSIUM
                                 "Sustaining Momentum"
                October 31st, 2005 at the Harvard Club of Boston

International Economic Alliance
Cambridge, MA, October, 2005

On behalf the members of our Board of Advisors, I am proud to
announce the U.S.-Ukrainian Investment Symposium.  The inaugural
celebration of Ukraine's progress towards economic integration will
take place on Monday, October 31st, 2005 at the Harvard Club of
Boston.

As part of the three-day regional investment focus, The 9th Annual
U.S.-Russian Investment Symposium will be held on November 1,2
at Boston's Seaport Hotel and World Trade Center.

HIGHLIGHTS: UKRAINE EXPLAINED

    With Ukraine's political and economic life changing rapidly,
investors learn about principles and opportunities serving as drivers of
Government policy towards foreign investment.  Boris Sobolev from
the President's State Secretariat and Former Chairman of the Foreign
Investment Advisor Committee will lead a delegation of Ukrainian
Government Officials to deliver the latest messages to the international
and corporate and investment community.

   Representatives of the most successful banks, multinational
corporations and entrepreneurial ventures in Ukraine will share their
experiences before the plenary assembly in moderated Panel discussions
and set dialogue in motion between agent, principal and management
over business and investment projects in the region.

    Harvard Business School Professors delivering an exclusive Case
Study Lecture Series to Symposium participants throughout the day at the
Harvard Club on October 31st.  Harvard Professors will also be joining with
decorated scholars (e.g. Anders Aslund, Carnegie Endowment Senior; and
John Tedstrom, Former Director of Eurasian Affairs, U.S. National Security
Council) to guide and moderate the Panel discussions.

   The European Bank for Reconstruction and Development and the World
Bank's International Finance Corporation have entered an institutional
partnership with the IEA to support and lend guidance to growing U.S.
investment interests in Ukraine.

Please visit our website regularly for updated information at
www.IEAlliance.org.

Kind regards,
Robert Mosbacher, Former US Secretary of Commerce
--------------------------------------------------------------------------------------------
International Economic Alliance, Hosts of the US-Russian
and US-Ukrainian Investment Symposia
Kiril Stefan Alexandrov, Executive Director
12 Francis Avenue, Cambridge, MA  02138  USA
tel  1.617.461.4155, fax  1.617.812.0499, www.IEAlliance.org
=====================================================
20. UCCLA ISSUES DOCUMENTARY COLLECTION ON GREAT
     FAMINE (HOLODOMOR) OF 1932-1933 IN SOVIET UKRAINE

Ukrainian Canadian Civil Liberties Association (UCCLA)
Calgary, Alberta, Canada, Tuesday, October 18, 2005

CALGARY - With the assistance of the Ukrainian Canadian Professional
and Business Association of Calgary, and other donors, the Ukrainian
Canadian Civil Liberties Association (UCCLA) has just published a
collection of Soviet era documents dealing with the causes and
consequences of the 1932-1933 famine in Soviet Ukraine, the
Holodomor.

Compiled and edited by Kyiv's Professor Yuri Shapoval, translated by
Marta D Olynyk, with a foreword by Dr Lubomyr Luciuk, this 336 page
book, The Famine-Genocide of 1932-1933 in Ukraine (Kingston:
Kashtan Press, 2005, ISBN# 1-896354-38-6, $35) consists of 81
documents (mainly in Russian, some in Ukrainian) complemented with
English language annotations, a list of acronyms, and an introductory
essay (in English and Ukrainian).

A final document, dated 15 May 2003, is the statement in Ukraine's
parliament that recognized the famine as a genocidal act.

Commenting on the release of this documentary collection, UCCLA's
director of research, Dr Luciuk said: " Until scholars and students
outside Ukraine have access to primary source materials on the
Holodomor there will always be those who dispute the nature and
consequences of this politically engineered famine.

Our intention was to help Professor Shapoval make his selection of
documents available, first by publishing them in book form, and then by
distributing them to international repository libraries.

We are pleased to note that the book is now being catalogued in selected
libraries, from Russia to Israel, the United States, Australia,and Japan.
Limited resources made it impossible to have a large print run but we are
grateful to those donors who know the importance of  placing such books
in the public domain.

And, of course, we have been able to do so just before this year's official
commemorations of the Holodomor, which will take place across Ukraine
on 26 November.

Much, much more work of this sort needs to be done if the world is ever
going to recognize the unprecedented nature of this Soviet crime against
humanity."  -30-   [The Action Ukraine Report Monitoring Service]
-------------------------------------------------------------------------------------------
NEW BOOK: The Famine-Genocide of 1932-1933 in Ukraine,
Kingston: Kashtan Press, 2005, ISBN# 1-896354-38-6, $35.
Kashtan Press, 22 Gretna Green, Kingston, Ontario, K7M-3J2.
For more information on UCCLA go to www.uccla.ca.
Dr Lubomyr Luciuk, luciuk-l@rmc.ca.
-------------------------------------------------------------------------------------------
NOTE:  The Ukrainian Federation of America (UFA) will be assisting
in the famine/holodomor/genocide commemorations in Kyiv during
November of this year.  The Federation needs to raise several thousand
dollars for expenses related to the Holodomor Exhibition to be held in
the Ukrainian House. Donations can be made out to the Ukrainian
Federation of America and sent to the Federation at 930 Henrietta
Avenue, Huntingdon Valley, PA 19006.  Please designate your donation
for the Dr. James Mace Memorial Holodomor Fund.    EDITOR
-------------------------------------------------------------------------------------------
NOTE:  The new book, " Day and Eternity of James Mace"
published by The Day in Kyiv, in English or in Ukrainian, is available
from the www.ArtUkraine.com Information Service.  If you are
interesting in finding out how to order the new book please send an
e-mail to ArtUkraine.com@starpower.net.   EDITOR
==================================================
21.       UKRAINIAN NEWSPAPER FOR HANDELSBLATT
                 (Handelsblatt startet ukrainische Tageszeitung)
                             Will be printed in Russian

Handelsblatt (English abstracts), Thursday, Oct 20, 2005

German newspaper Handelsblatt, which is part of German
publishing group Georg von Holtzbrinck, yesterday launched
a newspaper in Ukraine, titled 'Delo' ('Business').

The new business newspaper is to be printed in Russian to
begin with, as this is the predominant language in Ukraine.
[Abstracted from Handelsblatt]  -30-
=====================================================
22.              GALICIA REGION OF UKRAINE REVISITED
               Ukraine Trip Will Pioneer Multcultural Understanding

Shimon Redlich & John-Paul Himka
Canada, Wednesday, October 19, 2005

Ukraine has attracted nostalgic visits from three different ethnic groups
with an ancestral link in recent years. Ukrainians, Poles and Jews have
come to see the hometowns of their families but seldom crossed paths.

Shimon Redlich plans to change that this summer when he leads a
multicultural group to his native town of Berezhany and other towns in the
Galician region of Ukraine. For the first time a group of Ukrainians, Jews
and Polish expatriates will form a joint group that looks at their shared
history.

As a child Redlich survived Nazi persecution when he was befriended by
Polish and  Ukrainian families. He settled in Israel and became a historian
of Eastern Europe and the author of the book "Together and Apart" - Poles,
Jews and Ukrainians in Berezhany.

His book combined personal memories, interviews and scholarly research to
present a refreshing look at the "big picture" of Ukrainian-Jewish-Polish
coexistence .

"Families usually only pass down from generation to generation the history
of their own ethnic group. So Jews, Ukrainians and Poles are often unaware
of how intertwined their history was. They also often harbor stereotypes and
inaccurate perceptions.

By bringing together historians and community members, we hope to pave
the way for understanding among future generations," said Prof. Redlich.

Bernard Dichek, a Canadian-Israeli filmmaker plans on making a documentary
film about the encounter. Individuals or groups interested in being part of
the trip scheduled for the early part of the summer in 2006 should contact:

Bernard Dichek; dichek@netvision.net.il
BioIsrael Communications Ltd.; 24 Weizmann St., Office 12
Kfar Saba, Israel 44247, tel: +972-9-7409127
fax: +972-3-7256301, mobile: +972-52-2538113
or John-Paul Himka, john-paul.himka@ualberta.ca
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