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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"

UKRAINE BETWEEN A ROCK AND A HARD PLACE:
THE POLITICS OF ENERGY SECURITY

"The policies of the Putin Government pose a significant challenge to the
development of transparent democratic governments and free market
economies in those formerly communist countries that remain dependent
on Russia for their energy resources." [article one]

"THE ACTION UKRAINE REPORT - AUR" - Number 595
Mr. E. Morgan Williams, Publisher and Editor
Washington, D.C., Kyiv, Ukraine, FRIDAY, November 4, 2005

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

1. UKRAINE BETWEEN A ROCK AND A HARD PLACE:
THE POLITICS OF ENERGY SECURITY
PRESENTATION: by Keith C. Smith, Senior Associate,
Europe Program, Center for Strategic and International Studies (CSIS)
US-Ukraine Energy Dialogue, Inaugural Event
Dirksen U.S. Senate Office Building
Washington, D.C., Wednesday, November 2, 2005
The Action Ukraine Report (AUR), Issue 595, Article 1
Washington, D.C., Friday, November 4, 2005

2. EU URGED TO SCRUTINIZE RUSSIA-GERMANY GAS PIPELINE
Bypasses current routes through Poland, Belarus and Ukraine
Associated Press (AP), Tallinn, Estonia, Thu, November 3, 2005

3. THE CRITICAL ELEMENTS NECESSARY FOR UKRAINE
TO ATTRACT WESTERN FOREIGN INVESTMENT
Hunt Oil involved in three energy initiatives in Ukraine
PRESENTATION: by James B. Jennings
Chairman of Hunt Oil Company, Dallas, Texas
US-Ukraine Energy Dialogue, Inaugural Event
Dirksen U.S. Senate Office Building
Washington, D.C., Wednesday, November 2, 2005
The Action Ukraine Report (AUR), Number 595, Article 3
Washington, D.C., Friday, November 4, 2005

4. NEW UKRAINIAN PM REAFFIRMS GOALS OF REFORM
By David R. Sands, The Washington Times
Washington, D.C., Thursday, November 3, 2005

5. U.S. LAWMAKERS DEMAND END TO CURBS ON TRADE
WITH UKRAINE - JACKSON-VANIK AMENDMENT
Associated Press (AP), Washington, D.C., Wed, Nov 02 2005

6. PRIME MINISTER: UKRAINE AND ITS WTO MEMBERSHIP BID
By Jan Maksymiuk, Radio Free Europe/Radio Liberty (RFE/RL)
Prague, Czech Republic, Thursday, November 3, 2005

7. UKRAINIAN PM STILL HOPES FOR WTO ENTRY THIS YEAR
TV 5 Kanal, Kiev, in Ukrainian 1300 gmt 3 Nov 05
BBC Monitoring Service, UK, in English, Thu, November 3, 2005

8. PM YEKHANUROV SAYS IT WILL BE IMPOSSIBLE FOR
UKRAINE TO JOIN WTO AFTER RUSSIA JOINS
Ukrainian News Agency, Kyiv, Ukraine, Wed, November 2, 2005

9. PM YEKHANUROV SAYS UKRAINE NEEDS MARKET ECONOMY
STATUS FROM US TO PURSUE TALKS WITH US ON WTO
Ukrainian News Agency, Kyiv, Ukraine, Thu, November 3, 2005

10. UKRAINE EXPECTS TO COORDINATE WTO ENTRY WITH
UNITED STATES IN DECEMBER
Ukrainian News Agency, Kyiv, Ukraine, Thu, November 3, 2005

11 PM YEKHANUROV DISCUSSES CANDIDACY OF NEW
UKRAINIAN AMBASSADOR TO THE U.S.
Ukrainian News Agency, Kyiv, Ukraine, Thu, November 3, 2005

12. US SEC OF STATE CONDOLEEZZA RICE LISTS UKRAINE
AMONG USA'S STRATEGIC PARTNERS
Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

13. PRIME MINISTER YURIY YEKHANUROV MEETS WITH US
VICE PRESIDENT RICHARD CHENEY
Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed November 2, 2005

14. PRIME MINISTER YURIY YEKHANUROV SAYS USA WILL
RECOGNIZE UKRAINE AS MARKET ECONOMY TENTATIVELY
IN JANUARY 2006
Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

15. IF RUSSIA JOINS WTO AHEAD OF UKRAINE THE LATTER MAY
ALTOGETHER BE BARRED FROM THAT ORGANISATION, PRIME
MINISTER YURIY YEKHANUROV SAYS
Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

16. PRIME MINISTER YURIY YEKHANUROV STATES UKRAINE'S
READINESS TO PARTICIPATE IN NASA PROGRAMS
Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

17. PRIME MINISTER YURIY YEKHANUROV SAYS OPIC INTENDS
TO SET UP 100 M. USD FUND FOR INVESTMENTS IN UKRAINE
Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

18. UKRAINE PARLIAMENT REJECTS NATO SUPPORT PLAN
UPI, Kiev, Ukraine, Thursday, Nov 3, 2005

19. UKRAINE PARLIAMENT OK'S PRES NOMINEE OLEKSANDR
DVEDKO TO BE TOP PROSECUTOR
Associated Press (AP), Kiev, Ukraine, Thu, November 3, 2005

20. PROFILE OF NEW UKRAINIAN PROSECUTOR-GENERAL
OLEKSANDR MEDVEDKO
BBC Monitoring research in English 3 Nov 05
BBC Monitoring Service, UK, in English, Thu, Nov 3, 2005

21. UKRAINE'S CENTRIST CAMP IN DISARRAY AHEAD
OF 2006 ELECTIONS
Parties linked to Kuchma part ways ahead of parliamentary ballot
COMMENTARY AND ANALYSIS: By Taras Kuzio
Eurasia Daily Monitor, Volume 2, Issue 204
Jamestown Foundation, Washington, D.C.
Wednesday, November 2, 2005

22. UNITED NATIONS: THE HOLOCAUST AND THE HOLODOMOR
Holodomor - in Ukrainian which means "death by famine"
Statement by H.E. Mr. Valeriy Kuchinsky
Permanent Representative of Ukraine to the United Nations
On agenda item 72 "Holocaust Remembrance" of the 60th session
of the United Nations General Assembly
New York, New York, Tuesday, November 1, 2005

23. EUROPE MUST STOP FIGHTING CHANGE
On his negotiating role in Ukraine during last year's Orange Revolution
INTERVIEW: With Lech Walesa, The Wall Street Journal
New York, New York, Monday, October 31, 2005

24. IDEOLOGUE OF EMPIRE
Goal is the creation of a sweeping "Anti-Orange" political front
COMMENTARY: By Ilan Berman
The Wall Street Journal Europe, NY, NY, Thu, November 3, 2005

25. CONCERT: US DEBUT OF 20 YEAR OLD MAXIM BRYLINSKY
Violin in collaboration with Kotono Sakakura, harpsichord
Sunday Music Series at the Lyceum, November 13
The Washington Group Cultural Fund
Washington, D.C., Friday, November 4, 2005
=====================================================
1. UKRAINE BETWEEN A ROCK AND A HARD PLACE:
THE POLITICS OF ENERGY SECURITY

PRESENTATION: by Keith C. Smith, Senior Associate,
Europe Program, Center for Strategic and International Studies (CSIS)
US-Ukraine Energy Dialogue, Inaugural Event
Dirksen U.S. Senate Office Building
Washington, D.C., Wednesday, November 2, 2005
The Action Ukraine Report (AUR), Issue 595, Article 1
Washington, D.C., Friday, November 4, 2005

The policies of the Putin Government pose a significant challenge to the
development of transparent democratic governments and free market
economies in those formerly communist countries that remain dependent
on Russia for their energy resources.

Over the past few years, the Kremlin has been increasingly successful at
using its energy export dominance to influence non-economic policies in
East Central Europe, and particularly in Estonia, Latvia, Lithuania, Poland
and Ukraine.

Some of the EU members in Western Europe are now also discovering the
risks of their own growing energy dependency on Russia.

Ukraine is one of the best examples of a country caught between its growing
energy demand and its dependence on Russia to supply that energy.

The pipeline and rail infrastructure of the countries along Russia's western
border is overwhelmingly oriented so as to tie them to Russia. This
lingering effect of the Soviet era, combined with Russia's immense resource
base forces these countries to depend on Russia, even when the oil and gas
originate in third countries.

Since Russia enjoys a near monopoly as the energy supplier to East Central
Europe, the Kremlin has a powerful leverage with which to regain control of
the existing infrastructure in the neighboring democratic states.

In addition, Russia's increasing dominance of energy exports from the
less-democratic Turkmenistan, Uzbekistan and Kazakhstan also illustrate the
difficulties for countries such as Ukraine, who would like to lessen their
dependency on Russian supplies.

The energy industry is crucial to Russia's ability to create wealth and to
close the gap with the West, giving those who own or control resource
assets enormous advantages in the struggle for power inside of Russia.

The struggle for control of energy resources within Russia and between
Russia and its neighbors is complicated by the lack in most of the region of
clear and enforceable commercial law, governmental corruption, and lack of
transparency in interstate economic relations.

Although the problem of corruption in the new democracies would exist
independent of Russia, the problem is made more difficult by the policies
of the Kremlin and its power ministries, including the intelligence
services.

Moscow uses its intelligence assets and ties with wealthy members of the
economic elite, including former leaders of the Soviet-era nomenklatura in
neighboring countries, to supplement the monopoly power of its energy
supply relationship.

Russia's national security interest, as defined by Putin and a large part of
the power structure, is to re-establish Moscow's control over strategic
infrastructure in neighboring states. This control is to be used to ensure
that there are friendly governments in place that will support Russian
security and economic interests.

The growing wave of Russian nationalism that is encouraged by the Kremlin,
combined with deep disappointment at the "color revolutions," only increases
the likelihood that economic pressure on Ukraine will continue.

Russian cut offs of energy supplies started as early as 1990, in an attempt
to crush the independence movement in the Baltic States. It has continued
to the present time. The latest cutoff of energy supplies, which was
directed against Belarus, affected Poland and Lithuania, occurred in May
2004.

I'm sure that most of you remember the 1993 Massandra incident, as it became
known, that started as a reported attempt by the Yeltsin Government to force
Kyiv to pay debts incurred as a result of previous gas exports from Russia.

While there is little doubt about the legitimacy of Russia's right to be
paid for arrearages, it quickly became apparent that Moscow saw this as an
opportunity to use its energy muscle to extract political and military
basing concessions from the Ukrainian Government.

A week prior to the September 1993 summit between Presidents Yeltsin and
Kravchuk, Gazprom reduced its supplies of natural gas to Ukraine by 25%.

Although Gazprom cited Ukrainian debt as the only reason for the cutoff, the
Russian delegation to the summit stated that the gas debt could be cancelled
if Ukraine would give full control to Russia of the Black Sea Fleet and turn
over its remaining nuclear warheads to the Russian Rocket Forces.

Kravchuk was told that if his government did not accept the demands, all gas
shipments would be blocked. Although Kravchuk backtracked from his
acceptance of Russian demands, he did agree to give Gazprom major
ownership in the gas pipeline transiting Ukraine, opening the door to
further acquisition of gas and chemical facilities in Ukraine.

In 1995, one Russian journalist characterized the Russian-Ukrainian energy
relationship in the following way, "We will sell you 5 billion cubic meters
of gas and you enter the CIS customs union, and we sell you an additional 5
billion cubic meters and you support our position on the ABM treaty."

Russia oil shipments stopped flowing in late 1999 and early 2000, again in
order to secure leverage for Russian companies seeking a greater stake in
Ukraine's energy assets.

There continues to be very limited business transparency on both Russian
and Ukrainian sides in the energy relationship. The murky ownership and
activities in Ukraine of the Hungarian-based Eural Trans Gas, that supplied
Turkmen gas to Ukraine, has been well documented.

The operations of RosUkrEnergo, Eural Trans Gas' successor firm, are no more
transparent. Recently, Olekandr Turchynov, the former head of the SBU, made
public serious charges regarding alleged corrupt practices by RosUkrEnergo.

Today, four of Ukraine's six oil refineries, accounting for about 80% of the
country's refining capacity, are owned by Russian companies. Russian firms
control companies that export almost 100% of Ukraine's refined product.

For example, LUKoil has managed to acquire 100% ownership of the Odessa
Refinery, 50% ownership of the ZAO chemical and petrochemical complex, and
of course, it owns 100% of LUKoil Ukraine, which has 185 gasoline stations.

Some economists believe that many companies allegedly Ukrainian-owned are
really Russian owned, and are controlled through a mix of offshore and
domestically-located companies that front for Russian interests.

It should be noted that on June 2003, Pravda headlined an article with the
phrase, "Ukraine to lose Economic Independence: Russian oil oligarchs are
gaining control over the Ukrainian oil industry. " Pravda stated, "It took
the Russian oil industry eight years to change the situation in Ukraine
fundamentally.

The national fuel business of Ukraine is already living in compliance with
the law that is determined by Russian companies." The article concluded
that, "Russian oligarchs are trying to gain total control over the oil
industry and the oil export infrastructure in Ukraine. The consequences of
such changes for Ukraine are already obvious: the country may be deprived
of its economic independence."

Russia has effectively used its political and economic leverage on producing
states in the Caspian region and in Ukraine to prevent the construction of
new pipelines that bypass Russia.

At the same time, the rapid buildup of the oil terminal at Primorsk and the
proposal to build an expensive Baltic Sea gas pipeline system will weaken
whatever leverage that the transit states of Poland and Ukraine have now.

One has to question whether Western Europe will support the security
interests of their new EU partners, or will the large EU states, such as
Germany and France continue their individual quest for more Russian oil
and gas import and construction contracts, irrespective of the effect of
their "unilaterialism" on their partners in Central Europe.

EU enlargement and the debate surrounding a new EU constitution have
diverted the EU Commission's attention from some of the critical issues
still confronting the new democratic states to the east.

Individual European governments also still prefer to deal with Russia in a
bilateral, rather than multilateral context, and interest in East Central
Europe by some Western governments has actually declined now that
they are EU members.

If the EU Commission required the Putin Government to ratify and enforce the
Energy Charter, there would be an increase in real energy competition among
Russian energy companies, to the benefit of everyone, including Ukraine.

Unfortunately, there is a serious lack of cooperation between individual EU
importing countries and the EU's Directorate for Energy and Transportation,
only increasing security risks that stem from Russian energy domination.

The EU's quick endorsement of the Russian-German undersea gas pipeline
deal last month was a good illustration of the lack of a well thought out
and coordinated policy that protects the security interests of the entire
EU, particularly those of the Central European states.

There are no quick and easy fixes for the energy situation in Ukraine.
Odessa-Brody may not be economically viable. A gas pipeline from Iran
would not be politically wise.

We all see that colder weather is coming to Ukraine, and the country still
lacks a comprehensive gas import agreement with Russia.

Many observers believe that this situation is being manipulated by Moscow
in the expectation that Ukraine will end up paying somewhat less than market
prices for new gas shipments, but in return Gazprom will effectively gain
full control of Ukraine's pipeline system.

I have been impressed by the fact that many Western investors in the energy
field are convinced that Ukraine contains substantial deposits of gas and
oil. These energy specialists are willing to bring sizable amounts of
money, technology and experience to prove this.

Nevertheless, influential domestic Ukrainian interests are not anxious to
allow this to happen. They don't want the competition.

However, if Ukraine were a more welcoming country for Western energy
companies, the country's reliance on imported gas and oil could be
significantly curbed, providing substantial economic and political benefits.

A strong production sharing agreement for foreign investors in the energy
sector, would in the medium-term, significantly reduce Ukrainian energy
imports.

The recent approval of the Rada's Fuels and Energy Affairs Committee of a
bill restricting off-shore access to state-owned companies is a step in the
wrong direction. It would only increase Ukraine's import dependency on
Russia.

The new government of Prime Minister Yekhanurov will have a difficult
time rolling back much of the Russian takeover of Ukraine's energy
infrastructure.

Nevertheless, in the short run, the government must introduce a higher
degree of transparency in businesses, particularly in the energy industry.
This would reduce some of the negative effects of Russian domination
of Ukrainian facilities.

If Russia were clearly on its way toward an open, transparent modern
democratic state, with ethical corporate behavior enforced by an honest
judiciary, the problems discussed in this paper would quickly fade away.

A more democratic Russia would more likely respect the sovereignty and
economic aspirations of it neighbors. In that case, a strong, democratic
Ukraine would complement a strong, democratic Russia.

Nevertheless, an early transformation of Russia is not in the cards. In
fact, the systematic destruction of Yukos, the growing lack of transparency
in Russia's judicial apparatus and the increasing power of the present and
former intelligence officers in the Russian Government only makes the issue
more urgent for states in the neighborhood.

The importing countries will have to adopt more open, transparent
privatization laws, and at the same time invest considerable resources of
their own in order to ensure a greater degree of energy independence.

Breaking down the energy import barriers within Central Europe would help
reduce dependency on Russian companies that serve Russia's political,
rather than shareholder interests. Countries in the region must decide on
the
degree of ownership control they will cede to Russian oil and gas interests.

A greater degree of financial transparency would prevent Russian energy
companies from influencing decisions on privatization or the sale of energy
facilities through the use of campaign contributions and under-the-table
payments to local political leaders.

The lack of transparency and a business culture based on a zero-sum
mentality by Russian leaders has prevented considerable Western investment
in the energy business in both Russia and East Central Europe. This reduces
the level of business competition, tax revenues and investment in the
domestic energy resources in non-Russian Central Europe.

The U.S. and the EU should work with the Central Europeans in order to
better understand the political and security risks that stem from Russia's
use of its energy companies as instruments of foreign policy.

The consolidation of transparent democracy and open markets in East
Central Europe would have a significantly positive impact on the course
of reform in Russia itself, in Belarus and in Moldova.

It is in the long-term security interests of the U.S. and its allies to
break the cycle of corruption and political influence that underlie Russia's
foreign energy policy in East Central Europe.

Everyone, including the United States and Western Europe would benefit
from more openness in Russian energy policies. In the long run, the
greatest beneficiaries would be the Russian people. -30-
---------------------------------------------------------------------------------------------
Keith Smith is currently a senior associate in the Europe Program of
the Center for Strategic and International Studies (CSIS), in Washington,
D.C. From 2000 to 2002, he was a consultant on international energy
affairs to the Williams Company, one of America's largest integrated
energy companies.

Mr. Smith retired from the U.S. Department of State in 2000, where his
career focused primarily on European affairs. From 1997 to 2000, he was
U.S.ambassador to Lithuania. His additional posts in Europe include
Hungary (twice), Norway, and Estonia.

In all three countries, he served as acting ambassador (chargé d'affaires)
for extended periods. In addition to several other State Department
assignments, he most recently served as director of policy for Europe,
senior adviser to the deputy secretary of state for support of East
European democracy (the SEED Program), and director of area studies
at the Foreign Service Institute.

He is the author of the book, "Russian Energy Politics in the Baltics,
Poland, and Ukraine" published in December of 2004.
Contact Keith Smith: ksmith@csis.org, http://www.csis.org.
-----------------------------------------------------------------------------------------------
NOTE: The presentation by Keith Smith is published by The Action
Ukraine Report (AUR) as a public service in cooperation with the
organizers of the US-Ukraine Energy Dialogue: Center for US-Ukrainian
Relations, American Foreign Policy Council, Ministry of Fuel and
Energy of Ukraine, Ukrainian Congress Committee of America and
the Congressional Ukrainian Caucus.

The Program Coordinator for the US-Ukraine Energy Dialogue Series
is Walter Zaryckyj, Executive Director/Center for US-Ukrainian
Relations A/Associate Professor of Social Sciences/New York
University, waz1@nyu.edu; http://www.cusur.org.
====================================================
2. EU URGED TO SCRUTINIZE RUSSIA-GERMANY GAS PIPELINE
Bypasses current routes through Poland, Belarus and Ukraine

The presidents also discussed how they could better relay their countries'
experiences in joining the E.U. and NATO to other post-Soviet republics
like Ukraine and Moldova, Rozenberga said.

Associated Press (AP), Tallinn, Estonia, Thu, November 3, 2005

TALLINN, Estonia - The presidents of Estonia, Latvia and Lithuania
Thursday called on the European Union to take seriously their countries'
environmental concerns over a planned gas pipeline that would run through
the Baltic Sea between Russia and Germany.

Estonian President Arnold Ruutel, Lithuanian President Valdas Adamkus and
Latvian President Vaira Vike-Freiberga met in the Estonian city of Maardu to
discuss regional issues, including the planned gas pipeline.

They said they were concerned the pipeline would wreak further damage on
an already polluted Baltic Sea and called on the E.U. to consult their
governments more closely on the matter in the future, said Vike-Freiberga's
spokeswoman, Aiva Rozenberga.

The many unexploded munitions left over from World War II and chemicals
dumped for decades in the sea by the Soviet Union made building an
underwater pipeline risky, Adamkus and Ruutel were quoted as saying by the
Baltic News Service.

The 1,200-kilometer pipeline, intended to boost Russia's gas sales to Europe
and secure uninterrupted energy supplies for Germany, is to be commissioned
in 2010, and will eventually carry 55 billion cubic meters of gas each year.

It will span from Vyborg, in northeast Russia, to Greifswald, in northern
Germany, bypassing current routes through Poland, Belarus and Ukraine.

The deal has provoked opposition in the Baltics and neighboring Poland
because of its impact on the Baltic Sea and on local energy markets. The
construction of the pipeline should be undertaken under the watchful eyes of
all the countries bordering the Baltic Sea, Ruutel said.

The presidents also discussed how they could better relay their countries'
experiences in joining the E.U. and NATO to other post-Soviet republics
like Ukraine and Moldova, Rozenberga said. -30-
====================================================
Send in names and e-mail addresses for the AUR distribution list.
====================================================
3. THE CRITICAL ELEMENTS NECESSARY FOR UKRAINE
TO ATTRACT WESTERN FOREIGN INVESTMENT
Hunt Oil involved in three energy initiatives in Ukraine

PRESENTATION: by James B. Jennings
Chairman of Hunt Oil Company, Dallas, Texas
US-Ukraine Energy Dialogue, Inaugural Event
Dirksen U.S. Senate Office Building
Washington, D.C., Wednesday, November 2, 2005
The Action Ukraine Report (AUR), Number 595, Article 3
Washington, D.C., Friday, November 4, 2005

It is a pleasure and a privilege to be here today to participate in this
inaugural meeting of the U.S.-Ukraine Energy Dialogue Series. I want to
thank the many organizers for the opportunity to participate.

The comments made earlier today by the various high ranking Ukrainian
government representatives were helpful in understanding, from the Ukraine
perspective, their goals regarding foreign investment in and the potential
of Ukraine's energy sector.

As a potential investor, Hunt Oil Company is pleased to be able to present,
from its perspective, the critical elements which we believe are necessary
for Ukraine to attract western foreign investment. In that regard, I do not
pretend to speak for any other company. I can only speak for Hunt Oil
Company.

Having said that, the topics I would like to address are not project
specific nor limited to just Ukraine, but would be essential criteria for
Hunt Oil Company and generally any other investor, as they seriously
consider an energy investment in any country around the world.

It is important that those countries seeking foreign investment recognize
there is global competition for capital, and each country seeking foreign
investment must balance their demands and requirements with those of
other countries seeking similar investment.

Additionally, it is important that those seeking foreign investment
recognize those seeking to invest have minimum criteria for making such
investments.

I would offer for consideration that there are seven minimum criteria for
companies such as Hunt for foreign investment. The list of criteria is
straightforward and contains no "burning bush" revelations.

In fact, the list is made up of "common sense" concepts, but amazingly, one
or more of these concepts are many times overlooked by the countries
seeking investment. Frankly, in my opinion, if any one of these criteria is
missing, the chances for a successful joint effort are dramatically reduced.

The seven critical criteria are:

I. A country desiring to attract foreign investment must demonstrate
through its actions, not just through words, that it has or will create an
environment conducive to foreign investment. Just as an investor has to
compete against other companies for a country's interest, each country
must compete with other countries for an investor's dollars.

Both sides have many available options and alternatives, and it must be
clear that there is a complementary or value-added need for a cooperative
effort.

II. Opportunity must exist for both parties. An investor has to believe
that real opportunity exists and that opportunity can have a meaningful
impact on its organization. Similarly, each country has to believe the
potential investment dollars promised can really be delivered and can
actually add value by helping the country reach its stated objectives.

For any project to have a meaningful impact on large companies, such as
Hunt Oil Company, the companies must find opportunities with very large
potential and have a significant ownership interest in the project.

III. The rewards and benefits of investment must be commensurate with
the risks involved and undertaken. The fiscal regime and the negotiated
economic parameters of an agreement should be structured to create a
mutually beneficial outcome.

My experience has been if one side is too comfortable with an arrangement,
and the other side is uncomfortable, it is probably a "bad deal", and the
agreement will have a very short life.

I have found that the best deals are usually those where both sides feel a
little bit uncomfortable going into the arrangement. The phrase commonly
expressed to describe this situation is a "Win-win result." Such deals
usually result in a successful long-term relationship, in which a spirit of
mutual trust develops.

IV. Any agreement must provide essential guarantees for each side, whether
those are financial guarantees or contract continuity guarantees. Each
party will want assurances from each other that their respective financial
commitments can be met, and if the initial investments are successful, the
rights to successive steps toward total project realization are guaranteed.

V. Investors must have non-discriminatory, open access to infrastructure to
move its product to a market where world prices are paid for the product.

VI. Investors must believe that the "Rule of Law" and "Sanctity of Contract"
are concepts that the country will embrace and honor. Legitimate
disagreements can arise in any arrangement, and non-biased, third-party
arbitration is an essential element of any agreement.

VII. Transactions must be transparent, and the avoidance of corruption is
an absolute must.

I would now like to move from general concepts to the specific situation
as Hunt Oil, a potential western investor in Ukraine, sees it today.

Hunt Oil Company has been involved in Ukraine for almost three years, with
an initial offshore effort that has, since the Orange Revolution, expanded
to two additional onshore initiatives.

Through these three separate efforts, we have had the opportunity to observe
firsthand the changes which are occurring in the country. Changes, that in
our opinion, are very positive for both the country and for potential
foreign investors.

Based upon those observations and beliefs, Hunt Oil continues to actively
seek potential investment opportunities.

With the dramatic changes the country is undergoing as a result of the
Orange Revolution, the government has had to set priorities. And, only
Ukrainians can determine those priorities, and what their future objectives
with regard to foreign investment might be to meet those priorities.

As an outsider looking in, it seems to me the one important priority would
be for Ukraine to gain energy independence - an objective that is not a
whole lot different than exists in other countries around the world,
including the United States.

How Ukraine accomplishes that objective and what role they want western
investment to play is solely their choice.

Recall my number one investor criteria: "Does the country want foreign
investment?" The upper levels of the Ukrainian government have clearly
stated they do want to encourage foreign investment, including within the
energy sector.

However, a serious question remains: "Can the desire at the upper levels of
government be translated into action throughout the system?"

Personally, I see two extremes at work-those who truly embrace this concept
and those who do not see a need for foreign investors. This is an internal
struggle that only Ukrainians can resolve for themselves. I personally do
not think it is an "either/or" situation but rather a "where/where not"
decision.

In other words, there are places in the economy where foreign investment can
and should complement Ukraine's well-educated and experienced work force,
and places where foreign investment is not needed. I would argue, though,
that Ukraine can accelerate its objective of energy independence by
complementing its own resources with foreign investment.

Recall my criteria number two: Opportunity must exist for both sides. As
a result of Hunt's past efforts in working with the technical groups of
three separate entities, we believe there is opportunity for us and Ukraine.
We see real potential for finding significant new oil and gas reserves,
although it clearly will not be an easy task.

The Ukrainian men and women who have worked these geologic basins for
years have done an excellent job, and the lower risk, obvious prospects have
been drilled. However, Hunt Oil still sees ways where foreign investment
and newer technology can play a complementary role to the ongoing effort.
Hopefully, my counterparts in Ukraine agree.

Having successfully crossed these first two bridges, the Ukrainian officials
and Hunt Oil Company now need to address other critical criteria necessary
to successfully put together added value joint ventures.

Frankly, many of the policies, procedures and laws in existence prior to the
Orange Revolution present real challenges to both this government and
potential foreign investors as they run contrary to the criteria earlier
discussed.

However, if Ukraine can demonstrate continued positive change, in a timely
manner, then western investors like Hunt will be attracted to Ukraine. If
not, then the early excitement of potential investors will quickly fade
away.

Today, I remain optimistic that the needed changes to attract foreign
investment will occur, and we at Hunt look forward to the possibility of
playing a role in Ukraine's movement toward energy independence.

Again, thank you for allowing us to offer our perspective. -30-
---------------------------------------------------------------------------------------------
NOTE: As chairman of Hunt Oil Company, Jim Jennings is responsible for
establishing the strategic direction of the company, as well as developing
LNG as a new line of business for the Hunt organization. He joined the
company in 1979 and has served on the board of directors since 1991.
Jennings also serves as chairman of Hunt Oil Company of Canada, Inc.

He previously served as president and executive vice president of Hunt
Oil Company, where he was responsible for both international and U.S.
exploration. He also served as group vice president for worldwide
exploration and as senior vice president of U.S. exploration and production.
One of Jennings's early assignments with the company was the establishment
of the Gulf Coast Exploration Division in Houston.

Prior to joining Hunt, Jennings was chief geophysicist for Columbia Gas
Development Corporation. He also worked as a geophysicist for Shell Oil
Company.

Jennings earned a bachelor's degree in mathematics from Trinity University
in San Antonio, Texas and a master's in physics from Purdue University.
He serves as chairman of the executive committee of the Dallas Wildcatter's
Association and is an active member of the Dallas Committee of Foreign
Relations. He is a former director of the Dallas Petroleum Club.
April 2004

Contact: Judy Archer, Office of Jim Jennings, Chairman, Hunt Oil
Company Dallas, TX, JArcher@huntoil.com; http://www.huntoil.com.
----------------------------------------------------------------------------------------
NOTE: The presentation by Jim Jennings is published by The Action
Ukraine Report (AUR) as a public service in cooperation with the
organizers of the US-Ukraine Energy Dialogue: Center for US-
Ukrainian Relations, American Foreign Policy Council, Ministry of
Fuel and Energy of Ukraine, Ukrainian Congress Committee of
America and the Congressional Ukrainian Caucus.

The Program Coordinator for the US-Ukraine Energy Dialogue Series
is Walter Zaryckyj, Executive Director/Center for US-Ukrainian
Relations A/Associate Professor of Social Sciences/New York
University, waz1@nyu.edu; http://www.cusur.org.
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4. NEW UKRAINIAN PM REAFFIRMS GOALS OF REFORM

By David R. Sands, The Washington Times
Washington, D.C., Thursday, November 3, 2005

New Ukrainian Prime Minister Yuri Yekhanurov said yesterday his
government remains committed to the reforms promised in last year's
Orange Revolution, but plans to pursue them in a more disciplined fashion.

Mr. Yekhanurov, meeting with journalists at the end of a whirlwind two-day
Washington visit, said the previous government of ousted Prime Minister
Yulia Tymoshenko had been plagued by news leaks and very public discord
among senior ministers.

"I made very clear in the very first meeting of our new government that,
once a decision was made, any minister who voices a separate opinion on the
matter in public was basically signing his own dismissal papers," he said.

Mrs. Tymoshenko left the government in August after a highly public
showdown with President Viktor Yushchenko amid charges of corruption.
The feud between the two leading figures of the Orange Revolution raised
questions abroad about Kiev's commitment to economic and political
reforms.

But Mr. Yekhanurov, 57, noted he has long been a close ally of Mr.
Yushchenko. His Cabinet remains strongly committed to a reform program
that includes joining the World Trade Organization (WTO) and eventual
membership in the European Union and NATO, he said.

His Washington visit included meetings yesterday with Vice President Dick
Cheney, Secretary of State Condoleezza Rice and U.S. Trade Representative
Rob Portman. He also met with U.S. business leaders to pitch increased
investment in Ukraine.

The prime minister said he remained optimistic that Ukraine would achieve
the status of a market economy under U.S. law and was hopeful that decision
would help clear the way for a favorable WTO decision on Ukraine in Hong
Kong next month.

He predicted that Ukraine's parliament, which has balked in recent months at
parts of the government's reform agenda, would soon pass all the amendments
needed for WTO membership.

He said it was imperative that Ukraine enter the world trade body before
Russia, saying that if Russia's WTO bid was accepted first, Moscow could
set such high conditions for its neighbor and rival that Kiev would never
qualify.

The government's shaky political standing was underscored yesterday when the
parliament in Kiev failed to approve a plan to provide air support for NATO
operations, such as the peacekeeping mission in Afghanistan.

The accord had been negotiated by former President Leonid Kuchma, but the
new government of Mr. Yushchenko had strongly backed the idea as part of
its long-term bid to join the Western military alliance.

Mr. Yekhanurov blamed the vote in part on politics -- Ukraine faces a
critical parliamentary vote in March, with Mrs. Tymoshenko now leading an
opposition bloc -- and Ukrainian officials traveling with the prime minister
said the vote could be reversed in the coming days.

But Mr. Yekhanurov acknowledged that popular support for NATO
membership in Ukraine is only about 30 percent. "We still have a lot of
serious work to do to build up awareness on this issue," he said. -30-
=====================================================
5. U.S. LAWMAKERS DEMAND END TO CURBS ON TRADE
WITH UKRAINE - JACKSON-VANIK AMENDMENT

Associated Press (AP), Washington, D.C., Wed, Nov 02 2005

WASHINGTON (AP) - A bipartisan group of House members demanded
on Nov.2 the repeal of Cold War-era legislation that prevents Ukraine from
joining the World Trade Organization.

With Ukrainian Prime Minister Yuriy Yekhanurov at his side, Rep. Curt
Weldon said the curbs on Ukrainian trade under the 1974 Jackson-Vanik
amendment should be lifted immediately.

"It's time to elevate Ukraine out of Jackson-Vanik," said Weldon, who
co-chairs a U.S.-Ukraine joint legislative group.

Yekhanurov said quick movement toward Ukraine's WTO membership
was important because of Russia's interest in joining.

If Russia joins while the Ukraine bid lags behind, Moscow would use
its influence to keep its western neighbor out, Yekhanurov said,
speaking through an interpreter.

The Ukrainian leader spoke after a breakfast with about two dozen
legislators who strongly support the country's pro-democracy "orange
revolution."

Weldon said there is no reason for Ukraine to still be under
Jackson-Vanik because neither the administration nor the Congress
supports the status quo.

He said President George W. Bush expressed surprise not long ago that
the Jackson-Vanik restriction still applied to Ukraine.

The amendment effectively denies unconditional normal trade relations
to countries that had non-market economies and restricted emigration
rights.

Its chief target was the Soviet Union, of which Ukraine was a republic.

Weldon said U.S. groups that once supported Jackson-Vanik now agree
that it should no longer apply to Ukraine.

As examples, he mentioned the American Jewish Committee and the
National Council on Soviet Jewry.

Rep. Joseph Crowley said that since Jackson-Vanik was adopted, "times
have changed dramatically. It's time that our own laws catch up with
these changes."

Later, after a meeting with Secretary of State Condoleezza Rice,
Yekhanurov told reporters that Ukraine's parliament needed to take
steps to qualify for WTO membership.

He said he expressed hope to Rice that the administration would do
what it can to promote Ukraine's accession. -30-
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6. PRIME MINISTER: UKRAINE AND ITS WTO MEMBERSHIP BID

By Jan Maksymiuk, Radio Free Europe/Radio Liberty (RFE/RL)
Prague, Czech Republic, Thursday, November 3, 2005

Speaking at the Carnegie Endowment for International Peace [CEIP] in
Washington on 1 November, Ukrainian Prime Minister Yuriy Yekhanurov
reiterated Kyiv's official hope that Ukraine will become a member of the
World Trade Organization (WTO) by the end of this year.

Ukraine's potential access to the WTO could be approved by the Sixth WTO
Ministerial Conference in Hong Kong on 13-18 December. However, it does
not seem very likely that prior to this forum Kyiv will manage to receive
endorsement for its bid from all interested WTO members.

One of these interested members is the United States, which has so far not
signed a protocol with Ukraine on mutual access to commodity and service
markets in both countries. The signing of the protocol is tantamount to
Washington's approval of Ukraine's WTO entry.

Ukraine has already signed similar bilateral protocols with 38 countries
represented in the WTO Working Party that deals with its membership
application. Australia is another important country that has so far been
reluctant to sign such a document with Ukraine.

Both bilateral and multilateral negotiations regarding WTO accession are
confidential and all documents involved in the negotiation process are
restricted until its completion. What prevents Washington from giving a
go-ahead to Ukraine's WTO membership can be inferred from what
Yekhanurov said in Washington.

In general, Yekhanurov said that Ukraine "has considerably advanced" in
WTO talks with the United States. But he signaled some substantial
problems as well.

First, Yekhanurov admitted on 1 November that Ukraine has not yet brought
all of its customs duties in line with WTO standards and requirements.
According to him, this task has been fulfilled up to 80 percent by now.
Speaking the same day in Kyiv, Ukrainian President Viktor Yushchenko
estimated that Ukraine's legislation is just 65 percent in line with WTO
requirements.

The same day, in an apparent effort to strengthen Yekhanurov's position
during the Washington talks, the Verkhovna Rada passed two bills required
for WTO entry pertaining to imports and protection of domestic producers.
However, the process of adjusting Ukraine's legislation to WTO standards is
not easy, and it is not clear when it is likely to be completed.

In July, Communist Party deputies blared sirens and provoked scuffles in the
Verkhovna Rada in order to prevent the adoption of a package of WTO-oriented
bills. The Communist Party and other Ukrainian leftist groups see Ukraine's
WTO membership as a catastrophe for the Ukrainian economy, which in their
opinion cannot compete with more developed production capacities in the
West.

Second, Yekhanurov said in Washington that Ukraine hopes "to find mutual
understanding" with the United States on Ukraine's tariffs on exports of
scrap steel and ban on exports of nonferrous metals. Earlier this year U.S.
steel manufacturers called for trade sanctions against Ukraine (as well as
Russia) in response to the barrier taxes and tariffs imposed by these two
countries on export of scraps.

According to U.S. steel mills, these moves by Ukraine and Russia, which
reportedly resulted in doubling the composite-steel price in 2003-2004, were
trade-distorting practices. Scrap metal is the raw material for nearly
two-thirds of the U.S. steel industry. It seems that Washington has made its
backing for Ukraine's WTO bid conditional on resolving this scrap-metal
controversy.
RACE FOR FIRST PLACE
Yekhanurov made a very grim prediction as to what would happen if Ukraine
failed to join the WTO ahead of Russia, which is slated to do so in 2006.
"If Russia joins [the WTO] earlier than we do, it will be practically
impossible for Ukraine to become a WTO member," Yekhanurov told
journalists in Washington on 2 November. He did not elaborate.

But it is telling that Russian media have already signaled similar
apprehensions from the Russian side. Russian political commentators and
analysts fear that if Kyiv joins the WTO ahead of Moscow, Ukraine will
surely enter bilateral negotiations with Russia on the latter's
WTO-accession conditions and will try to make these conditions very
hard for the Russians.

There are both economic and political reasons for expecting a potential
Russian-Ukrainian dispute over WTO membership. Russia and Ukraine
currently have serious disagreements over trade -- Kyiv, for example, is
very displeased with Russian restrictions imposed on Ukrainian exports
of steel pipes and sugar.

Therefore, Moscow fears that Kyiv could make these restrictions a bargaining
chip in bilateral WTO talks. Moreover, Moscow is concerned that Kyiv's
accession to the WTO this year could complicate bilateral trade regarding
those commodities on which both countries do not impose any customs
duties.

Some politicians in Moscow have suggested that Ukraine could start
reexporting some of the Western commodities that are taxed by Russia
in its trade with the West but not with Ukraine.

On the other hand, Kyiv is apparently afraid that if Russia joins the WTO
first, the Kremlin will try to tie Ukraine more closely to Russia not only
economically but also politically. Russia has not abandoned its plan for
creating a Single Economic Space along with Belarus, Kazakhstan, and
Ukraine.

Ukraine has subscribed to the idea of establishing a free economic zone
within such a space, but spoken resolutely against forming a customs union
of the four countries or supranational executive bodies.

It is possible that Russia could use its WTO membership as leverage to
make Ukraine more compliant in accepting the Single Economic Space as
a more rigid political and economic formation. -30-
-------------------------------------------------------------------------------------------------
www.rferl.org/featuresarticle/2005/11/834024F4-DD26-489A-BBC4-C94660092C73.html
=====================================================
7. UKRAINIAN PM STILL HOPES FOR WTO ENTRY THIS YEAR

TV 5 Kanal, Kiev, in Ukrainian 1300 gmt 3 Nov 05
BBC Monitoring Service, UK, in English, Thu, November 3, 2005

[Presenter] Ukrainian Prime Minister Yuriy Yekhanurov has said that Ukraine
may receive the status of a market economy from the European Union on 1
December, during the Ukraine-EU summit.

Yekhanurov was on a working visit to the USA. Ukraine expects to receive
the same status from the USA in January.

The status of a market economy is the necessary precondition for entry into
the World Trade Organization. That's what Yekhanurov was told in the USA
from Vice-President Richard Cheney and Secretary of State Condoleezza Rice.

But Yekhanurov has not lost hope that Ukraine will nevertheless become a
WTO member this year.

He noted that the entry should not necessarily take place during the WTO
conference in Hong Kong, as Yushchenko said earlier. The WTO's ruling bodies
can take a decision on Ukraine at any moment. Yekhanurov said that he heard
a clear signal to that effect in the USA. The USA will back Ukraine's entry
into the WTO. For his part, Yekhanurov said that Kiev should definitely join
the WTO earlier than Moscow.

[Yekhanurov] You understand that the Russian Federation is a big country,
and that the conditions they can put forward to us may be such that we will
never fulfil them. This is why it is very important for us to join the World
Trade Organization earlier, even if it's a brief period ahead. I still hope
that we will do so in the nearest future. -30-
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8. PM YEKHANUROV SAYS IT WILL BE IMPOSSIBLE FOR
UKRAINE TO JOIN WTO AFTER RUSSIA JOINS

Ukrainian News Agency, Kyiv, Ukraine, Wed, November 2, 2005

KYIV - Prime Minister Yurii Yekhanurov has said that it will be practically
impossible for Ukraine to join the World Trade Organization if Russia joins
the organization before Ukraine.

Yekhanurov was addressing journalists in Washington while commenting
on the outcome of his meeting with the United States congressional group
for assistance to Ukraine.

"If Russia joins before us, then it will be practically impossible for
Ukraine to join the WTO," Yekhanurov said. He added that he spoke to
US congressmen about this.

Yekhanurov added that Russia aims to join the WTO in 2006 while
Ukraine is aiming to joint it in December 2005.

Yekhanurov also said that he discussed the possibility of the United States
granting Ukraine the status of a market economy for the purpose of
antidumping investigations during his meeting with the congressmen.

Yekhanurov said that granting Ukraine the status of a market economy
required the Ukrainian Cabinet of Ministers to sign the relevant protocol
with the government of the United States and that the signing of such a
protocol required the consent of the United States' Congress. Yekhanurov
told journalists that he asked the congressmen to approve the signing of
such a protocol.

At the same time, Yekhanurov added that the congressmen made several
comments to him, including the need for the Ukrainian economy to be open,
the need for the actions of the Cabinet of Ministers to be transparent, and
comments about the issue of corruption and the need to eradicate it.

Yekhanurov also said that he and the congressmen discussed the need to
hold transparent, democratic elections into the Ukrainian parliament in
March 2006. Yekhanurov thanked the congressmen for the support he
felt from them during the meeting.

Congressman Kurt Weldon stated the need for early abolition of the
Jackson-Vanik amendment, but he did not specify when the United States
legislature would be able to abolish it. Ukraine is aiming to join the WTO
before the end of this year.

To date, Ukraine has signed 38 bilateral protocols on access to markets of
goods and services with member-countries of the working group considering
Ukraine's application for membership of the WTO. Among the countries with
which Ukraine still has to sign such protocols, the most important are the
United States and Australia. -30- [Action Ukraine Report Monitoring]
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9. PM YEKHANUROV SAYS UKRAINE NEEDS MARKET ECONOMY
STATUS FROM US TO PURSUE TALKS WITH US ON WTO

Ukrainian News Agency, Kyiv, Ukraine, Thu, November 3, 2005

Prime Minister Yurii Yekhanurov said that Ukraine needs to receive a market
economy status from the United States to make it sign a protocol on access
to the markets of goods and services in talks on entry to the World Trade
Organization. Yekhanurov made this statement, commenting on his meeting
with U.S. Vice President Richard Cheney.

He said Ukraine has to receive a market economy status from the U.S. first.
"First it is necessary to get the status of a free market economy country
from the us," Yekhanurov said. The work on a bilateral protocol with the
U.S. goes on in parallel, the prime minister added.

Yekhanurov also said that the work on a bilateral protocol with the US on
the WTO in proceeding simultaneously.

Concluding his comments on WTO negotiations, Yekhanurov said the
United States is used to be the last party to sign the documents.

As Foreign Minister Borys Tarasiuk told reporters in Kyiv, he was unaware
about the wording when conclusion of the protocol is linked with getting a
status.

"The issue if a free market economy country status and a bilateral protocol
are different processes. They have nothing in common. I believe, this is a
wrong idea of the situation," the Minister said.

According to Tarasiuk, because of difficult procedures, the US will be able
to give Ukraine the status of a free market economy country in January 2006.

At the same time, he said a protocol may be concluded this month on
condition of successful talks of Yekhanurov in the US. As Ukrainian News
earlier reported, Yekhanurov was on a working visit to Washington on
November 1 and 2.

He predicted earlier that the U.S. might grant a market economy status to
Ukraine in January 2006. Ukraine had expected to join WTO before the end
of this year.

Ukraine has already signed bilateral protocols on access to the markets of
goods and services with 38 member-countries of the working group
considering Ukraine's application for WTO membership. Among the
countries with which Ukraine still has to sign such protocols, the most
important are the United States and Australia. -30-
======================================================
10. UKRAINE EXPECTS TO COORDINATE WTO ENTRY WITH
UNITED STATES IN DECEMBER

Ukrainian News Agency, Kyiv, Ukraine, Thu, November 3, 2005

Ukraine expects to sign a protocol with the United States about access to
markets of goods and services within the framework of entry to the World
Trade Organization in December before holding of a ministerial conference
in Hong Kong on WTO. Yekhanurov told journalists about this while
commenting results of his visit to the US.

"I really would like us to receive this protocol from the US government in
December, on the eve of the meeting in Hong Kong," Yekhanurov said.
Yekhanurov added that Ukraine has the most complicated negotiations on
WTO entry with Australia.

Among non-coordinated questions he mentioned the level of support of
agrarian and industrial complex, which Ukraine wants to keep at the level
of USD 1.3 billion, while Australia offers USD 350 million.

Besides that, among problematic issues in the talks with Australia
Yekhanurov mentioned sugar quotas, adding that the process of
negotiations continues on this issue now.

Yekhanurov mentioned that Ukraine's entry to the WTO greatly depends
on the US side, which coordinates its work with the governments of other
countries and, as a rule, is the last to sign the documents.

Yekhanurov confirmed that Ukraine expects to obtain the status of market
economy from the European Union on December 1 on Ukraine-EU summit
in Kyiv and expects that the US will confirm the market status of Ukrainian
economy in antidumping investigations in January of next year.

As Ukrainian News earlier reported, Ukraine expects that decision about its
entry to the WTO will be approved on the ministerial conference in Hong
Kong in mid-December.

Yekhanurov also announced that if Russia joins WTO first, this will
complicate Ukraine's entry to this organization greatly, as it will have to
coordinate entry conditions with Russia as well. -30-
=====================================================
11. PM YEKHANUROV DISCUSSES CANDIDACY OF NEW
UKRAINIAN AMBASSADOR TO THE U.S.

Ukrainian News Agency, Kyiv, Ukraine, Thu, November 3, 2005

KYIV - During his visit to the United States, Prime Minister Yurii
Yekhanurov has discussed the candidacy of new a Ukrainian ambassador
with American authorities. Yekhanurov made this statement to the press,
commenting on his trip.

He said the candidacy has been agreed with President Viktor Yuschenko
and submitted to the American government for approval.

Yekhanurov talked about the ambassador candidate with U.S. Secretary of
State Condoleezza Rice.

The prime minister refused to name the candidate for the post, saying only
that it is going to be a well experienced and professional diplomat.

Yekhanurov expressed hope that the American government will approve the
candidacy in a short period of time and then Yuschenko will be able to sign
a decree on his appointment.

"I think we will have no problems with receiving agreement [consent of the
U.S.]," he said. As Ukrainian News earlier reported, Yekhanurov was on a
working visit to Washington on November 1 and 2.

Foreign Minister Borys Tarasiuk said he expects President Viktor Yuschenko
to appoint new ambassadors of Ukraine in November, filling 20 of 23
vacancies. This year Yuschenko dismissed 17 ambassadors. Some
ambassador's posts have remained vacant since Leonid Kuchma's presidency.
=====================================================
12. US SEC OF STATE CONDOLEEZZA RICE LISTS UKRAINE
AMONG USA'S STRATEGIC PARTNERS

Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

WASHINGTON, DC - US Secretary of State Condoleezza Rice has listed
Ukraine among the USA's strategic partners, Prime Minister Yuriy Yekhanurov
told Ukrainian media people in Washington after he met with Ms Rice there.

Ukraine is a nation of strategic significance to the USA, and the USA will
do everything to development strategic partnership relations with Ukraine,
Mr Yekhanurov quoted the US State Secretary as saying.

According to Mr Yekhanurov, the meeting was very intense and involved many
aspects of bilateral relations, Ukraine's bid for being recognized a market
economy and for joining the WTO.

As Mr Yekhanurov further commented on the meeting, Condoleezza Rice noted
that Ukraine must step up adoption of WTO-related bills, on its part,
whereas the US Congress should expedite revocation of the Jackson-Vanick
Amendment.

Besides, the US Secretary of State reiterated the need for making the
Ukrainian authority more transparent, promote democratic processes and
combat corruption.

Later in the day the Ukrainian Prime Minister was supposed to participate in
the international conference "Energy Dialogue Between Ukraine And USA."
=====================================================
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=====================================================
13. PRIME MINISTER YURIY YEKHANUROV MEETS WITH US
VICE PRESIDENT RICHARD CHENEY

Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed November 2, 2005

WASHINGTON, DC - Ukraine, which intends to join the WTO this year,
will sign a bipartite agreement on that score only after the USA grants
Ukraine the market economy nation status, Prime Minister Yuriy Yekhanurov
told journalists in Washington after his meeting with US Vice President
Richard Cheney.

You see, we need to first get the market economy status from the USA, Mr
Yekhanurov noted.

The Economics Ministry's group are working on the WTO protocol. As you
know, the USA has used to signing documents last, Mr Yekhanurov further
commented on his talks in Washington.

After meeting with Condoleezza Rice Mr Yekhanurov said that the USA was
likely to grant Ukraine the market economy nation status in January 2006.

The Ukrainian Prime Minister was reluctant to explain how Ukraine might
join the WTO this year if the protocol's signing is postponed to January
2006. -30- [The Action Ukraine Report Monitoring Service]
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14. PRIME MINISTER YURIY YEKHANUROV SAYS USA WILL
RECOGNIZE UKRAINE AS MARKET ECONOMY TENTATIVELY
IN JANUARY 2006

Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

WASHINGTON, DC - As Prime Minister Yuriy Yekhanurov told Ukrainian
journalists in Washington after he met with US State Secretary Condoleezza
Rice, the USA will recognize Ukraine as a market economy nation tentatively
in January 2006.

According to Mr Yekhanurov, this forecast proceeds from anti-dumping
investigations under way. A working group within the Economics Ministry are
readying all necessary documents for signing.

Led by Economics Minister Arseniy Yatseniuk, they will likely complete the
job in a month and a half, the Prime Minister noted.
=====================================================
15. IF RUSSIA JOINS WTO AHEAD OF UKRAINE THE LATTER MAY
ALTOGETHER BE BARRED FROM THAT ORGANISATION, PRIME
MINISTER YURIY YEKHANUROV SAYS

Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

WASHINGTON, DC - Meeting with the US Congress Group for aiding
Ukraine in Washington, Prime Minister Yuriy Yekhanurov said that if Russia
joined the World Trade Organisation ahead of Ukraine the latter's
negotiations toward joining the WTO would be greatly complicated and
even made impossible.

As Mr Yekhanurov told Ukrainian media people in Washington, Russia is
contemplating to join the WTO next year, so the Ukrainian party is doing its
best to join the WTO earlier. -30- [Action Ukraine Report Monitoring]
=====================================================
16. PRIME MINISTER YURIY YEKHANUROV STATES UKRAINE'S
READINESS TO PARTICIPATE IN NASA PROGRAMS

Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

WASHINGTON, DC - Meeting with NASA chiefs in Washington, Prime
Minister Yuriy Yekhanurov stated Ukraine's readiness to participate in NASA
programs, including lunar expeditions.

As Mr Yekhanurov noted, this will be possible only after Ukraine signs an
agreement on cooperation with the NASA. Presently, he said, Ukraine is
drafting a framework agreement and a memorandum.

As Yuriy Yekhanurov disclosed, he invited NASA senior executive to make
a visit to Ukraine, tentatively in late spring 2006. Before that, he noted,
the cooperation documents will have to be signed. -30-
=======================================================
17. PRIME MINISTER YURIY YEKHANUROV SAYS OPIC INTENDS
TO SET UP 100 M. USD FUND FOR INVESTMENTS IN UKRAINE

Oleksandr Khorolskiy, Ukrinform, Kyiv, Ukraine, Wed, November 2, 2005

WASHINGTON, DC - According to Prime Minister Yuriy Yekhanurov, the
Overseas Private Investment Corporation [OPIC] intends to set up a 100 M.
USD fund for investments in Ukraine.

As the Cabinet press service told Ukrinform Wednesday, the Fund will be
presented in Kyiv in late January - early February 2006.

Commenting on his meeting with OPIC chiefs, Yuriy Yekhanurov said its
chief result was in the OPIC's decision to establish the fund for
investments in Ukraine.

The original sum to the tune of 100 million dollars will likely grow. As Mr
Yekhanurov noted, the OPIC fund will both invest heavily in the Ukrainian
economy and will guarantee investments for other companies.

The OPIC is an independent agency of the US Federal Government. The
OPIC renders non-profit services, including insurance, to US-based
companies, which operate abroad. -30-
=====================================================
Power Corrupts and Absolute Power Corrupts Absolutely.
=====================================================
18. UKRAINE PARLIAMENT REJECTS NATO SUPPORT PLAN

UPI, Kiev, Ukraine, Thursday, Nov 3, 2005

KIEV, Ukraine - Ukrainian President Viktor Yushchenko has received a
stinging setback from his parliament on aiding NATO.

The Verkhovna Rada, or parliament, Wednesday voted down a government
proposal to allow NATO transport aircraft to fly across its territory and
use its bases in support of military operations around the world.

The measure needed to be approved by a clear majority -- 226 members
out of the 450 in the chamber. But it fell 19 votes short with only 207.

The defeat was a major blow for the strongly pro-Western Yushchenko
whose goal is to fully integrate Ukraine into U.S.-led NATO and the 25-
nation European Union as quickly as possible.

And it revived the political fortunes of the former communists and their
pro-Russian allies whom he defeated in the 2004-2005 presidential elections
that marked Ukraine's democratic "Orange Revolution."

Ironically, the proposal had originally been negotiated by Yushchenko's
more pro-Russian predecessor, President Leonid Kuchma.

Yushchenko, despite his recent dramatic election victory, is increasingly
isolated in his pro-NATO policies in Ukraine.

Recent opinion polls show opposition is still strong in Ukraine, which
was part of the Soviet Union until the collapse of communism in 1991.
=====================================================
19. UKRAINE PARLIAMENT OK'S PRES NOMINEE OLEKSANDR
DVEDKO TO BE TOP PROSECUTOR

Associated Press (AP), Kiev, Ukraine, Thu, November 3, 2005

KIEV - Lawmakers on Thursday overwhelmingly approved presidential
nominee Oleksandr Medvedko to be Ukraine's new top prosecutor,
replacing an unpopular prosecutor who was sacked last month.

Parliament voted 303-0 to confirm Medvedko, who had been serving as
a deputy prosecutor general. The Socialists and a smaller party, United
Ukraine, abstained, as did most of former Prime Minister Yulia
Tymoshenko's 40-person bloc.

"I understand the urgent tasks facing prosecutors and I know how to solve
them," Medvedko told lawmakers before the vote.

Medvedko proposed creating a special division to investigate corruption,
one of this ex-Soviet republic's biggest problems. President Viktor
Yushchenko has made eradicating corruption a top priority.

Last month, Yushchenko sacked Prosecutor General Svyatoslav Piskun,
and his office later accused the prosecutor of dragging out important
investigations.

Piskun, who has challenged his dismissal, was an unpopular figure, and
many of Yushchenko's Orange Revolution supporters criticized
Yushchenko for not firing him earlier.

Piskun said he was sacked because he opened a criminal investigation into a
close Yushchenko ally - an investigation that was closed immediately after
Piskun's sacking. -30- [The Action Ukraine Report Monitoring Service]
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20. PROFILE OF NEW UKRAINIAN PROSECUTOR-GENERAL
OLEKSANDR MEDVEDKO

BBC Monitoring research in English 3 Nov 05
BBC Monitoring Service, UK, in English, Thu, Nov 3, 2005

Ukraine's parliament on 3 November approved President Viktor
Yushchenko's choice of prosecutor-general, Viktor Medvedko, by 303
votes in the 450-seat body. The high approval was the result of weeks
of talks between Yushchenko's team and parliamentary factions.

Eventually, only three factions refused to back Medvedko - the Yuliya
Tymoshenko Bloc, which supported Medvedko's predecessor, Svyatoslav
Piskun; the bloc's allies United Ukraine; and the Socialists, who said they
had doubts about Medvedko as one of the investigators into the yet
unsolved murders of journalists Heorhiy Gongadze and Ihor Oleksandrov.

Medvedko positions himself as an antipode to Piskun, who was often
accused of sympathizing with Tymoshenko's party, and liked to make
sensational statements at news conferences.

Speaking shortly before his appointment, Medvedko promised to be
apolitical and equidistant from political parties. He said the Prosecutor-
General's Office under him would not share its suppositions with the
public, but only report about results.

Medvedko pledged to do everything possible to resolve the September 2000
murder of Gongadze. He said that the killers have been found, so the main
puzzle is who ordered the murder.

Henadiy Vasylyev, a former prosecutor-general, has said that he sacked
Medvedko from the Prosecutor-General's Office in 2003 for botching the
investigation into the murder of TV journalist Ihor Oleksandrov in Donetsk
Region in 2001.

Deputy Prosecutor-General Viktor Shokin denied this, speaking to the
newspaper Segodnya. He said Medvedko was only a rank-and-file member
of the investigation group looking into Oleksandrov's murder, so he was not
authorized to make decisions.

According to media reports, Medvedko was involved in the probes into
several high-profile murders, including those of Donetsk MP Yevhen
Shcherban in 1996, and of former central bank chairman Vadym Hetman
in 1998.

Medvedko was born in a village in Ukraine's southern Zaporizhzhya Region
on 25 July 1955.

After graduating from the Kharkiv Institute of Jurisprudence in 1980,
Medvedko worked in prosecution bodies in the Donbass. Until 1992 he was
an investigator in the office of the prosecutor of the town of Druzhkivka in
Donetsk Region. In 1992-99, Medvedko was chief prosecutor of the industrial
town of Kostyantynivka in Donetsk Region.

Then he was picked to work in the region's prosecutor's office in Donetsk.
In 2001, Medvedko moved to the neighbouring Luhansk Region, and worked
as first deputy regional prosecutor there until July 2002, when he became
Ukrainian deputy prosecutor-general. Medvedko was fired from that position
in 2003, but re-appointed in December 2004, at the height of the Orange
Revolution.

Medvedko is married, and resides in Kiev. His only daughter is married to a
prosecutor. According to Oleksandr Medvedko's income statement for 2004,
he does not own any properties or vehicles, and has no bank deposits.
=====================================================
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=====================================================
21. UKRAINE'S CENTRIST CAMP IN DISARRAY AHEAD
OF 2006 ELECTIONS
Parties linked to Kuchma part ways ahead of parliamentary ballot

COMMENTARY AND ANALYSIS: By Taras Kuzio
Eurasia Daily Monitor, Volume 2, Issue 204
Jamestown Foundation, Washington, D.C.
Wednesday, November 2, 2005

Although the main story in Ukrainian politics this fall has been the rift in
the Orange Revolutionary camp, the centrists that once gathered around
former president Leonid Kuchma are far more divided. Most of them will
have a hard time winning seats in the 2006 parliament.

Two of Ukraine's three centrist parties, representing the largest of the
three oligarchic parties, have decided not to create election blocs and
instead contest the 2006 elections alone (Ukrayinska pravda, October 31,
November 1). The Social Democratic Party--United (SDPUo) and Regions
of Ukraine (RU) will both run independent campaigns in 2006.

The SDPUo ran independently in both the 1998 and 2002 elections, obtaining
4% and 6% respectively. With current ratings of only 1%, it is unlikely to
win a seat in 2006.

Regions of Ukraine's first election was in 2002, when it ran as a member of
the pro-Kuchma "For a United Ukraine" bloc. In June 2005 it floated the idea
of creating a bloc named after its leader, Viktor Yanukovych, which became
saddled with the unfortunate slang abbreviation "Blya" (Blok Yanukovych).

Two new parties could have joined "Blya": New Democracy, led by former
Kharkiv governor Yevhen Kushnariov, and Derzhava, led by former prosecutor
Hennadiy Vasyliev. A third possible member of "Blya" would have been the
Progressive Socialists.

The third centrist party, Labor Ukraine (TU), is no longer a political
force. Its dismal 1% rating is now divided between two quarrelling wings of
TU led by Valeriy Konovaliuk and Volodymyr Sivkovych (Ukrayinska pravda,
October 8, 11). TU split over how to relate to the Orange Revolution.

Konovaliuk sought to modernize TU by permitting some cooperation with the
administration of President Viktor Yushchenko, while Sivkovych lobbied for
the TU to join the hard-line anti-Yushchenko opposition.

Why have the centrists turned on each other?

All along, the centrists were united only by their allegiance to Kuchma, not
by any common ideological bonds. This tenuous connection mirrors the lack
of real unity in the Orange Revolutionary camp, which united nationalists,
anarchists, liberals, businessmen, and Socialists against Kuchma and
Yanukovych. After Yushchenko won, there was no common enemy to bind
the coalition together.

According to SDPUo leader Viktor Medvedchuk, one of the main differences
between his party and Regions of Ukraine is that the RU faction signed the
parliamentary agreement with President Yushchenko, a step the SDPUo
refused to undertake (Den, October 7).

Medvedchuk also complained that, because the SDPUo had backed
Yanukovych's candidacy in the 2004 elections, voters continue to confuse
the SDPUo and RU as "one team."

Medvedchuk's argued unconvincingly that the SDPUo, "upholds a
contemporary social-democratic ideology," while Regions of Ukraine uses
the slogan, "Strong regions - strong state." In reality, both parties are
ideologically amorphous and the Socialist International even rejected the
SDPUo's membership on the grounds that it was not a real social-democratic
party.

Ironically, Regions of Ukraine is no longer a pro-Kuchma party. Defeated
presidential candidate Yanukovych is now hostile to Kuchma, believing he
betrayed and embarrassed him in the second round of the 2004 elections.

Yanukovych lobbied throughout the first week of the Orange Revolution for
Kuchma to launch a violent crackdown to confirm the official result of
himself elected as president. But, Kuchma refused, instead calling for fresh
elections without Yushchenko or Yanukovych where he could have stood as a
candidate. RU's initial distrust of Kuchma and Medvedchuk, it believes, was
proven correct.

During his decade in office, Kuchma granted the ruling elites in Donetsk,
the RU's base, de facto autonomy. They were only reluctantly brought into
Kyiv politics by Kuchma in 2002 when Yanukovych was made prime minister
and, two years later, heir apparent. They invested sizeable financial
resources in the 2004 elections.

The RU and the SDPUo are therefore also divided over the Kuchma era, with
Medvedchuk giving it a positive spin while Yanukovych is now critical.

Ukrainian polls continue to point to only six parties and blocs being
elected to the 2006 parliament. These six will compete in three groups for
voters (Ukrayinska pravda, October 31).

The Yulia Tymoshenko bloc will compete with Yushchenko's People's Union-
Our Ukraine for the mantle of the Orange Revolution. RU will compete with
the Communists for uneducated voters and pensioners in eastern Ukraine. The
Socialist Party and parliamentary speaker Volodymyr Lytvyn's bloc will
compete for the rural vote in central and southern Ukraine.

The Orange Revolutionary camp is likely to re-unite after the 2006 elections
to create a pro-Yushchenko majority that may include the Lytvyn bloc and the
Socialists (Ukrayinska pravda, October 8, 10, 25, 27, November 1).
Centrists, on the other hand, will only be represented by Regions of
Ukraine, as other formerly influential pro-Kuchma parties will fail to enter
parliament. -30- [The Action Ukraine Report Monitoring Service]
=====================================================
22.UNITED NATIONS: THE HOLOCAUST AND THE HOLODOMOR
Holodomor - in Ukrainian which means "death by famine"

Statement by H.E. Mr. Valeriy Kuchinsky
Permanent Representative of Ukraine to the United Nations
On agenda item 72 "Holocaust Remembrance" of the 60th session
of the United Nations General Assembly
New York, New York, Tuesday, November 1, 2005

Mr. President,

While aligning fully with the statement by EU Presidency, I would like to
make a few remarks on behalf of Ukraine.

Mr. President,

Holocaust is a permanent pain not only of the Jewish but of the world
community as a whole. We remember the enormous suffering of those who
perished in the death camps of Auschwitz, Buchenwald, Dachau and many
other hideous sites, where, in the name of a perverse inhuman ideology,
millions of human beings were deliberately and cruelly exterminated.

Jews and gypsies, men and women, children and the elderly, sons and
daughters of different nations, including hundreds of thousands from
Ukraine, became innocent victims of a ruthless political system that had
brought immense losses to humankind.

The terrible image of the Holocaust was vivid in the minds of those who
authored the Universal Declaration of Human Rights and of those who
proclaimed and adopted the Convention on the Prevention and Punishment
of the Crime of Genocide.

Many thought that the horrors of the Second World War - the camps, the
cruelty, the exterminations like Holocaust - could never happen again. And
yet they have - in Cambodia, Srebrenica, Rwanda and most recently in Darfur.

Therefore we are deeply convinced that the history of the Holocaust must be
learned and extensively explained so that similar tragedies would never
happen. The inter-ethnic conflicts which unfortunately take place in the
world even today show that mankind lacks tolerance and that the lessons of
Holocaust remain highly relevant and require continued attention of the
entire membership of the United Nations.

Mr. President,

The history of Holocaust is widely studied and taught in my country. The
Government of Ukraine supports the initiative of the Jewish community on
the creation of a Ukrainian Museum of Holocaust in Kyiv. We do hope
that this project will be implemented shortly.

The Orange Revolution has evoked dramatic transformations in the
socio-political life of Ukraine. Those positive changes, I am sure, will
have a favorable impact on the life of an over 100 thousand Jewish
community which has made a worthy contribution to the strengthening
of my country's independence.

On the Government's level we are doing our best to create adequate
conditions for the revival and development of all minorities, residing in
Ukraine. The minority legislation, put in place to ensure the inter-ethnic
harmony and national diversity in Ukraine, fully corresponds to the
highest international human rights standards.

Mr. President

As we are commemorating the victims of the Holocaust, Ukraine remembers
the shattering damage which intolerance, violence and aggression caused to
her in recent past.

This year marks the 72nd anniversary of one of the most tragic pages in
Ukraine's history - the Great Famine of 1932-33 (Holodomor - in Ukrainian
which means "death by famine").

Deliberately targeted against the vital core of Ukrainian nation the cruel
terror by hunger set up by the totalitarian Soviet regime led to the deaths
of seven to ten million of innocent men, women and children.

The scourge of Holodomor still remains a heavy psychological trauma in the
life of our people. After more than seven decades this catastrophe appears
as one of the most shocking crimes ever experienced by the humankind.

And yet, Holodomor as Holocaust continues to belong to those national
tragedies, which still await wider international recognition.

Two years ago a Joint Statement on the 70th anniversary of Holodomor,
supported by over 60 delegations - one third of UN membership - was
issued as an official document of the General Assembly.

In this declaration, for the first time in the history of the United
Nations, Holodomor has been officially recognized as the national tragedy
of Ukrainian people caused by the cruel actions and policies of the
totalitarian regime.

Representatives of the States from different parts of the world expressed
sympathy to the victims of Holodomor and deplored the acts and policies
that brought about mass starvation and death of millions of people.

Ukraine will continue to do its utmost to bring the truth about Holodomor to
the world at large. We think it is high time the international community
recognize this crime against humanity as an act of genocide against the
Ukrainian nation.

Mr. President

The memory of far and near instances of genocide, crimes against humanity
or gross and flagrant violations of human rights should never fade away.

Therefore Ukraine has wholeheartedly supported and cosponsored the draft
resolution that we have before us for adoption.

In Ukraine, we have done and will continue to do everything to prevent the
ideology of totalitarism, dictatorship, xenophobia and anti-Semitism from
taking root on our national soil.

My country is ready to assume its share of a collective responsibility to
stop ongoing tragedies and prevent future crimes against humanity.

As an important and promising outcome of the recent World Summit, the
responsibility to protect should receive its practical implementation as
well as further development.

I thank you, Mr. President. -30-
---------------------------------------------------------------------------------------------
NOTE: The Ukrainian Federation of America (UFA) and your Editor
will be assisting in the famine/holodomor/genocide commemorations in
Kyiv during the week of November 21st of this year. We needs to raise
five thousand dollars to cover expenses related to preparing and
setting up the Holodomor Exhibition to be held in the Ukrainian House.

Donations should 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. Thanks for your support. EDITOR
=====================================================
23. EUROPE MUST STOP FIGHTING CHANGE
Solidarity's Founder Says Poland's History
Has Taught Its People to Anticipate and Adapt
On his negotiating role in Ukraine during last year's Orange Revolution

INTERVIEW: With Lech Walesa, The Wall Street Journal
New York, New York, Monday, October 31, 2005

It was 25 years ago that Lech Walesa, following a series of successful
nationwide strikes, negotiated recognition of the Soviet bloc's first free
trade union with Poland's government. Solidarity quickly grew to a social
movement of 10 million that helped set in motion a democratization process
across Eastern Europe that ultimately broke up the Soviet Union itself.

In New York to observe the anniversary, Mr. Walesa reflected upon both the
past and the present. He talked about why the unarmed movement was able to
win against a military superpower. He talked about his role in convincing
Ukraine's leaders not to violently suppress protests during last year's
Orange Revolution.

Most strikingly, he talked with deep concern about Europe's failure to
transform itself for the globalization era. He also worried about the global
impact of what he considers America's declining moral legitimacy.

The following are edited comments, translated from Polish, from a recent
interview with The Wall Street Journal's Frederick Kempe.

On why he never lost faith Solidarity would win, even after martial law
scattered the movement in December 1981.

Walesa: It was obvious when you looked at the world that the Communist
system could not last. The state could no longer control information. They
couldn't jam Radio Free Europe successfully. With satellite antennae, the
Communists were losing ever more control. Poland could not be isolated. The
economy was going global.

On whether Gen. Wojciech Jaruzelski acted as a Soviet puppet or Polish
patriot in declaring martial law.

I leave to God to judge him. Not long ago I had a conversation with him. I
said to him, if you truly believed in communism then I forgive you. You may
not have thought Poland had a chance for independence. None of the leading
politicians of the world thought we stood a chance for independence. So it's
likely General Jaruzelski didn't see that either. But once we succeeded, I
told him, you should have rejoiced with me and you didn't really. He went to
the Soviet Union this year to celebrate the 60th anniversary of World War
II's end. He didn't say anything positive about Solidarity. God will judge
him. All I can say is I would have acted differently.

On whether he feared the Soviets would invade Poland.

They didn't need to invade Poland because they were already there. There
were 250,000 soldiers [inside the country]. We said to them, we are not
going to fight against you because we stand no chance whatsoever. But if you
finally attack us, your soldiers will finally have to leave their tanks at
some point and our girls will kiss them to death. Meanwhile, we will not
work for the bad system you've created.

On the role of Polish-born Pope John Paul II.

[The Soviets] couldn't fight one thing -- the second millennium of
Christianity was coming to an end and Poland was given the gift of the Pope.
The Pope, a year after his election [1979], came on a pilgrimage to Poland.
All Poles flocked to meet with the Pope. Even the secret service officers on
duty learned how to cross themselves. He didn't ask us to fight, but what he
said was so suggestive that each of us had to reflect and many of us began
to think the same sorts of things. The Polish nation was awakened, and
organizations like the one I was heading managed to tap that enthusiasm. The
Soviets panicked when they saw the situation was getting out of hand. They
wanted to shoot the Pope but he turned out for that moment to be immortal.
On the role of Mikhail Gorbachev.

We dissidents knew very well that any attempt [to reform Communism] was
bound to fail. We knew that if he tried to dig under the foundations of the
system it would collapse on his head. But actually Gorbachev's failure was
his greatest success.

On who should get credit for dismantling Communism in Poland.

We should admit that half of the credit should go to the Pope. Communism
didn't collapse because of his words, but they were the words that awoke us.
So give a further 30% of the credit to Solidarity and Lech Walesa. I could
give myself more credit, but I want to be on good terms with the One up
There. [The other 20%, he says, goes to others who lent support from the
outside.]

On what role religious faith has played for him.

I come from a small village. I didn't have much chance to go to school. But
I had two things - the first, a belief in God, and the second, a belief in
what I was doing. I achieved all this because of those two beliefs. That's
all anyone needs.

About the U.S. role in Poland's gaining its freedom.

If the victory was won, that means the role was neither too little or too
big. If the assistance had been too strong, it could have prompted a
backlash from the Soviets. In a sense it was good that the West didn't show
too strong of a determination because it left the Soviets with the false
hope that they perhaps could still survive. The problems came after 1989.
This is when we should have had a new-generation Marshall Plan to unlock all
our human and material potential. The West just abandoned us and sent in its
Western companies that took our markets and made our businesses suffocate.

On what concerns him now about Europe.

We are enjoying a period of enormous opportunity and well-being, but we lack
a realization that a new era has begun. Our entire institutional frameworks,
all our ways of thinking, belong to an old era. We need a totally different
way of thinking. We have the French, for example, wanting to dominate the
European Union for themselves, the Germans want it for themselves and then
the Poles naturally want to get as much out of it for themselves as
possible. What worries me most is we are not properly reading and
understanding the challenges of the time.

On how he sees Europe's future.

Europe is trying to hinder the wave of change, trying to break it down and
slow its momentum. Although it speaks of a free market, it won't let go of
its subsidies. It speaks of a single market but labor markets are closed to
Polish workers. Some of our neighbors don't want our cheap, motivated labor.
So let us finally make up our minds. We must not go on like this.

On the costs to Europe if it fails to change.

If Europe doesn't transform, it will be in trouble. Nationalism.
Protectionism. Matters can go backwards. It cannot close its eyes and say,
you can't see me, can you? Europeans can't shut their eyes and hope no one
notices them.

On why the world should listen to Poland.

Poland warned before the outbreak of the Second World War that war was
imminent. What did the world reply to us after Hitler crossed the Polish
border? 'It is a local conflict.' They remembered the Polish warning only
when war reached Paris and London And what did we say when the war
was over? Stalin is cheating on you. Yalta is a betrayal. He's going to
install Communism and we will never be rid of it.

We had to fight for fifty years afterward to overcome this betrayal and at
what cost? Today again from our perspective we say the following: things
must change. People who live in places like Poland learn to sense things
better, to anticipate things better because of all the experience they've
had.

On his negotiating role in Ukraine during last year's Orange Revolution.

My aims in Ukraine were two-fold. My first aim was to help avoid bloodshed,
and the second was to get the two sides to sit down and talk. When I started
my talks there, [Prime Minister Viktor] Yanukovych praised me as a great
person. He then said to me that he had already given out the orders, and
that the army was approaching [the protesters].

I turned to him and I said: "I know that you have already lost. So now you
face two alternatives, to lose with bloodshed or lose without bloodshed.
That is the only alternative you are faced with."

I think that converted him. I said that I would be going to the rally
shortly and was going to tell those people whether he was going to shoot at
your brothers or not. "That is the only question," I said. "What is your
answer." What answer could he have given me?

The answer was no, of course. Then I asked whether he would talk even to
his enemies for the sake of Ukraine. "Give me the answer and I will go to
the rally and I will tell the people," I said. What answer could he give me?
Of course he would talk. So off I went off to the rally and told the people.
Everything else was continued by the others thereafter.

On the U.S. efforts to democratize Iraq.

It was unwise to dissolve the whole army and police service. All the U.S.
accomplished by doing that was directing people to the opposition. It was
very arrogant of the Americans, and they are paying a high price for it.
Democracy is made up of two elements.

One of them is the democratic structures and a legal framework. The other is
the behavior of the citizens and their willingness to take advantage of
democracy. The Americans thought they would introduce the legal framework
and they would have democracy ready-made. But they forgot that some
people would not be willing or capable of taking advantage of it.

On America's global leadership.

The U.S. is still the leader in the world in military and economic matters,
but it is not any longer the moral and political leader in the world. And
I'm not sure whether the latter of the two isn't more important than the
first. The United States is more badly needed by the rest of the world than
by the Americans. The United States was always a kind of ultimate refuge
for everyone. It was the light of hope for the rest of the world. It has
ceased to be one right now.

On how he would like to be remembered.

I don't want any tombstone. I want my flesh to be burned and my ashes
dispersed around the world. That way there won't be a [monument]. I hope
I avoid hell, where there is a negative selection for the highest positions.
So Lenin and Stalin are highly placed there, and they could really torment
me. I will only be a smaller devil. -30-
=====================================================
24. IDEOLOGUE OF EMPIRE

The goal, according to Mr. Dugin, is the creation of a sweeping
"Anti-Orange" political front aimed at confronting the new, pluralistic
and pro-Western governments in Ukraine and Georgia -- and of preventing
similar democratic inroads in an increasingly authoritarian Russia.

COMMENTARY: By Ilan Berman
The Wall Street Journal Europe, NY, NY, Thu, November 3, 2005

Chances are, you've never heard of Alexander Dugin. In the U.S. and Europe,
the soft-spoken Russian political philosopher is still very much a marginal
figure. But within Russia itself, the 43-year-old strategist has become an
influential political force. And, increasingly, his radical ideas about a
reconstituted, anti-Western empire are making their mark on Russian foreign
policy.

Mr. Dugin's political past is mired in controversy. During the 1980s, he
reportedly worked as an archivist for the KGB, where he was exposed to, and
influenced by, the ideas of the early "Eurasianists" -- Russian thinkers
like Lev Gumilyov who, in the early 1900s, had modernized and popularized
the idea of Russia's historical destiny as an empire.

A one-time fascist, Mr. Dugin joined forces with controversial
writer/activist Eduard Limonov in the early 1990s to form the National
Bolshevik Party (NBP), using it as a platform to advocate a "conservative
revolution" pitting Russia against the West.

By the late 1990s, however, Mr. Dugin had broken with Mr. Limonov and the
NBP in pursuit of a more puritan political approach. In 1997, he gained
prominence with the publication of his seminal work, "Osnovy Geopolitike"
(The Foundations of Geopolitics) -- a rambling, 924-page treatise advocating
the re-creation of an anti-Western Russian empire.

In it, Mr. Dugin postulated that Russia and the U.S. are destined for global
confrontation, and proposed a series of alliances through which Russia can
achieve international dominance.

Since then, Mr. Dugin has begun putting these principles into practice. In
2000, he created "Eurasia," a socio-political movement dedicated to the
revival of the art of geopolitics -- and to the idea of a "Greater Russia"
stretching from the Middle East to the Pacific.

Not surprisingly, the group's heady cocktail of mysticism, religious
symbolism and good old-fashioned political partisanship found more than a
few takers among Russians disenchanted with their country's second-rate
economic and political status. (Today, according to Mr. Dugin, his movement
boasts some 25,000 members in Russia and its so-called "near abroad," many
of them current and former members of the Russian intelligence services and
military.)

Two and a half years later, Mr. Dugin's ideas were formally entrenched in
Russian political discourse with the chartering of his "Eurasia Party," a
political faction deeply supportive of Russian President Vladimir Putin's
foreign policy line.

Over the years, Mr. Dugin's influence has ebbed and flowed with the currents
of Russian foreign policy. Before September 11th, his ideas about
multipolarity and anti-Americanism were very much in vogue in the corridors
of the Kremlin, with Mr. Dugin reportedly serving as an unofficial adviser
to a number of important Russian defense officials and diplomats.

But in the wake of the terrorist attacks on New York and Washington, Mr.
Dugin's star waned. Against the counsel of many in Moscow, President Putin
rallied to the side of the United States, supporting the war on terror and
the U.S. offensive against the Taliban and al Qaeda in Afghanistan.

Gradually, however, Mr. Dugin's philosophy has resurfaced, buoyed by a
wave of renewed nationalist sentiment and imperial impulses. In the
aftermath of the U.S.-led campaign against Saddam Hussein's Iraq,
Washington's cooperation with Moscow has cooled, and the Kremlin has
reverted to old habits.

In the Middle East, in line with Mr. Dugin's dictums, the Russian government
is stubbornly nurturing its nuclear contacts with Iran, as well as expanding
arms supplies to the beleaguered regime of Syrian dictator Bashar Assad. In
Asia, Moscow is drifting closer to China in a strategic partnership that Mr.
Dugin has praised as an "alliance. in the heart of Eurasia."

And in Central Asia and the Caucasus, the Kremlin is gravitating toward an
increasingly hostile, anti-American foreign policy stance, nervous over the
recent democratic transformations that have taken place in Georgia, Ukraine
and Kyrgyzstan.

Mr. Dugin, for his part, is seizing the moment. The philosopher has provided
much-needed intellectual cover for this summer's landmark Russian-Chinese
military maneuvers, which have elicited serious worries in the West.

This type of aggressive military cooperation is only natural, Mr. Dugin
explains, because both countries are threatened by the recent Ukrainian,
Georgian and Kyrgyz "color revolutions" -- and by the perceived "American
connection" to these transformations.

Mr. Dugin has also thrown his weight behind Moscow's efforts to oust
American influence from the "post-Soviet space." "A new strategic bloc is
taking shape before our eyes," he recently wrote with admiration in the
newspaper Vedomosti.

"The Americans are firmly resolved to continue their policy in Eurasia," and
"Russia's salvation" lies with the Shanghai Cooperation Organization, a
Moscow- and Beijing-led regional anti-Western alliance encompassing many
of the former Soviet republics.

At home, meanwhile, Mr. Dugin is channeling his energies toward the
mobilization of various nationalist forces. In recent weeks, his Eurasia
movement has spearheaded the rapprochement of various ethnic and political
groups in Russia and the near abroad.

The goal, according to Mr. Dugin, is the creation of a sweeping
"Anti-Orange" political front aimed at confronting the new, pluralistic and
pro-Western governments in Ukraine and Georgia -- and of preventing similar
democratic inroads in an increasingly authoritarian Russia.

As these maneuvers suggest, Mr. Dugin's vision is xenophobic, antidemocratic
and deeply anti-Western. Alarmingly, it also appears to be gaining serious
ground in Putin's Russia, where authoritarian drift and opposition to the
U.S. are again becoming the order of the day. -30-
--------------------------------------------------------------------------------------------
Mr. Berman is vice president for policy at the American Foreign Policy
Council in Washington, D.C.
=====================================================
25. CONCERT: US DEBUT OF 20 YEAR OLD MAXIM BRYLINSKY
Violin in collaboration with Kotono Sakakura, harpsichord
Sunday Music Series at the Lyceum, November 13

The Washington Group Cultural Fund
Washington, D.C., Friday, November 4, 2005

WASHINGTON, D.C. - The Washington Group Cultural Fund under
the patronage of the Embassy of Ukraine announces the US debut of
20 year old Maxim Brylinsky, violin in collaboration with Kotono
Sakakura, harpsichord, in a program of Bach, Beethoven, Mozart,
Paganini and Skoryk.

The concert is part of the Sunday Music Series at the Lyceum and
will be held Nov 13, 2005 at 3 p.m. at the Lyceum in Alexandria,
Virginia.

Maxim won 2nd prize at the International Violin Competition "Premio
Paganini" in Italy at age 17 in 2002. In 2004 he performed the Brahms
Violin Concerto at the Barbican in London with London Symphony
Orchestra conducted by Sir Andrew Davis.

Ms. Kotono Sakakura has performed in Germany, Italy, Austria and Japan
as soloist and chamber musician with the Vienna Symphony and the
Vienna Philharmonic. In 2005 she made her debut concert at the Tokyo
Opera City with one of the leading members of the Vienna Philharmonic.
She has been selected as a Special Artist of "Channel Japan"

The concert will be held at: The Lyceum, 3 PM
201 S. Washington Street, Old Town, Alexandria, Virginia.
Unreserved seating; suggested donation $20; students free
For more information: contact Marta Zielyk, 202-244-8836
=====================================================
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Washington Office, SigmaBleyzer
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Director, Ukrainian Federation of America (UFA)
Coordinator, Action Ukraine Coalition (AUC)
Senior Advisor, U.S.-Ukraine Foundation (USUF)
Chairman, Executive Committee, Ukraine-U.S. Business Council
Publisher, Ukraine Information Website, www.ArtUkraine.com
Member, International Ukrainian Holodomor Committee
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Power Corrupts and Absolute Power Corrupts Absolutely.
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