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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 NEEDS AN ECONOMIC PLAN
               "If we, as Ukrainians, are as smart as it seems we are,
                  then we should make an effort not to be so poor."
                                      
"THE ACTION UKRAINE REPORT - AUR" - Number 617
Mr. E. Morgan Williams, Publisher and Editor
Washington, D.C., WEDNESDAY, DECEMBER 14, 2005

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

1.                   UKRAINE NEEDS AN ECONOMIC PLAN
                "If we, as Ukrainians, are as smart as it seems we are,
                   then we should make an effort not to be so poor."
COMMENTARY: Katerina Panova
Reporter for Korrespondent magazine
Kyiv Post, Kyiv, Ukraine, Wednesday, Dec 07 2005

2.    RADICAL REFORM NEEDED IN UKRAINE IMPOSSIBLE AT
        PRESENT SAYS PRIME MINISTER YURIY YEKHANUROV
 No pension, housing, public utility, health care, tax or administrative-
 territorial reforms now and we cannot dare to begin structural reform.
Interfax, Kyiv, Ukraine, Monday, December 12, 2005

3UKRAINE GUARANTEES RUSSIAN GAS DELIVERIES TO EUROPE
Associated Press, Kiev, Ukraine, Monday, December 12, 2005 

4.   GAZPROM THREAT TO CUT SUPPLIES OF GAS TO EUROPE
By Tom Warner in Kiev, Financial Times
London, UK, Monday, December 12 2005

5.   BUILDING COMPANIES CAUSE SECOND 2005 BOND BOOM 
ANALYSIS: By Roman Bryl, Ukraine Analyst
IntelliNews-Ukraine This Week, Kyiv, Ukraine, Monday, Dec 12, 2005

6.         AES UKRAINE TO INVEST US 100 MILLION IN AES
       KYIVOBLENERHO AND AES RIVNEOBLENERHO BY 2011
Ukrainian News Agency, Kyiv, Ukraine, Mon, December 12, 2005

7AES UKRAINE REACHES SOFTWARE-LICENSING AGREEMENT
                             WITH MICROSOFT UKRAINE
            Microsoft says deal is largest in Ukrainian energy industry
Ukrainian News Agency, Kyiv, Ukraine, Monday, December 12, 2005

8. ADVANCED DIGITAL BROADCAST (ADB) ESTABLISHES NEW
RESEARCH AND DEVELOPMENT CENTRE IN KHARKOV, UKRAINE
                    ADB now has five R&D Centres located in Europe
PRESS RELEASE: Advanced Digital Broadcast (ADB)
Geneva, Switzerland, Monday, December 12th, 2005

9.   LARGE RUSSIAN RETAILER PYATEROCHKA PLANS MAJOR
           BOOST IN ITS OPERATIONS IN UKRAINE DURING 2006
   Russia's largest food & nonfood products retailer to open 30 new stores
RosBusinessConsulting (RBC), Moscow, Russia, Mon, Dec 12, 2005

10. UKRAINE: EPAM PLANS SOFTWARE OUTSOURCING CENTERS 
    Two regional development units will be targeted at clients in the European
             Union and the U.S., the New Jersey-based company said.
By W. David Gardner, TechWeb News, USA, Tue, Dec 6, 2005

11.     UKRAINE VINEYARD SOARS ON MODERISATION DRIVE
               Grape harvest yield four times above national average
By Angela Drujinina, Central & Eastern Europe FoodIndustry.com
Montpellier, France, Tuesday, December 12, 2005

12UKRAINE: IN TWO YEARS THE MARKET FOR FRESH SALAD
                                COULD INCREASE 50 TIMES
          Dr. Lee says Ukrainian salad market has only begun to develop.
Agricultural Marketing Project (AMP)
Kyiv, Ukraine, Friday, December 9, 2005

13CZECH EMPLOYMENT OFFICES MIGHT APPEAR IN UKRAINE
   Over 100,000 Ukrainians work either legally or illegally in Czech Republic
CTK, Prague, Czech, Republic, Monday, Dec 12, 2005

14MIGRATION TO IRELAND UNDERMINING THE ECONOMIC
                          AND SOCIAL FABRIC OF LATVIA
    Author of 'The Mushroom Covenant' warns of 'brain drain' in Latvia
         Latvia filling some of its own low paying jobs with Ukrainians
Ruadhan Mac Cormaic, Irish Times, Dublin, Ireland, Mon, Dec 12, 2005

15. CRIMEAN TARTARS CALL ON KYIV TO RESTORE THEIR RIGHTS
            Voices calling for Kyiv to recognize the deportation as genocide
RFE/RL's Tatar-Bashkir Service/Interfax
Prague, Czech Republic, Monday, December 12, 2005

16 FIRST LADY MEETS UKRAINIAN FEDERATION OF AMERICA
LEADERS & U.S. MEDICAL EXPERTS ON MEDICAL COOPERATION
    Blood safety, hemophilia diagnosing, prevention of virus infections, HIV
Press office of President Victor Yushchenko of Ukraine
Kyiv, Ukraine, Tuesday, 6 December 2005

17BENEFIT CONCERT-CHRISTMAS: UKRAINIAN ORPHANAGES:
     Wednesday, December 14, 2005, 7:00 P.M. Falls Church, Virginia

18.  CHIEF RABBI OF UKRAINE AND FJC MAKE HEADWAY ON
            RESTITUTION OF JEWISH RELIGIOUS PROPERTY
Federation of Jewish Communities of the CIS (FJC)
Moscow, New York, Friday, December 9 2005

19.       ANTI-DEFAMATION LEAGUE (ADL) TO U.S. HOUSE
     DELAY GRANTING UKRAINE NORMAL TRADE RELATIONS
              The university MAUP, actively promotes anti-Semitism
Anti-Defamation League (ADL), New York, NY, Tue, Dec 6, 2005

20.   WHY I HATE BEING THE TALLEST MAN IN THE WORLD
                        Ukrainian Leonid Stadnyk stands 8ft 4 ins tall
           "I'm the tallest man but I often feel one of the most helpless.
                                 This life is for smaller people."
Exclusive From Will Stewart In Podoliantsy, Ukraine
Mirror.co.uk, Online Edition of The Daily Mirror
London, United Kingdom, 12 December 2005

21.     EUROPE FEATURES: UKRAINE'S ORANGE REVOLUTION
OUTSIDE VIEW: COMMENTARY
Contributed by Taras Kuzio and Jennifer Moroney
United Press International (UPI), Washington, D.C., Tue, Dec 13, 2005

22.      POLICY WATCH: NO MORE COLOR REVOLUTIONS?
COMMENTARY: By Mark N. Katz, UPI Correspondent
Washington, D.C., Sunday, December 11, 2005

23THE ORANGE REVOLUTION: PERSONAL RECOLLECTIONS
REMARKS: By Paula J. Dobriansky, Under Secretary for
Democracy and Global Affairs, United States Department of State
Roundtable: The Orange Revolution: A Year After
American Enterprise Institute (AEI), Washington, DC,  Dec 5, 2005

24.                   ANNA OF KYIV, QUEEN OF FRANCE
     Nadiya Nikitenko, Ph. D. in history, head of the Historical Research
    Department of the Sofiya Kyivska National Preserve, tells a story of
Anna, daughter of an eleventh-century ruler of Kyiv, and Queen of France.
By Nadiya Nikitenko, Ph. D, Head of the Historical Research
Department of the Sofiya Kyivska National Preserve
Welcome to Ukraine magazine, Pages 44-47
Kyiv, Ukraine, Issue 4 (35), November 2005
========================================================
1
                      UKRAINE NEEDS AN ECONOMIC PLAN
                   "If we, as Ukrainians, are as smart as it seems we are,
                       then we should make an effort not to be so poor."

COMMENTARY: Katerina Panova
Reporter for Korrespondent magazine
Kyiv Post, Kyiv, Ukraine, Wednesday, Dec 07 2005

Both President Viktor Yushchenko and the government have, with impressive
thoroughness, started paying attention to the messages they've been sending
to businesspeople.

Last week, both Yushchenko and Prime Minister Yuriy Yekhanurov reassured
participants in an Economist-sponsored roundtable that reprivatization is
over with for good, that private property is sacred and untouchable, and
that protecting the rights of investors will be the government's key
operating principle.

Besides the generalities, some very concrete promises were also made: to
cancel all indisputable VAT claims until the end of the year, lower tax
rates, and reduce regulatory pressure.

Yekhanurov even admitted that he meets with business representatives a
minimum of twice a week - not just to flirt with them, but to understand the
logic behind the way they work. At the same time, he complained that no one
was yet taking a systematic view of things - each businessman comes only on
behalf of his own problems.

But it's hard to blame entrepreneurs for not hitting the government with
complex demands, given that the government itself hasn't formulated rules of
the game for business, with an eye towards developing the country's economy.

It's worth mentioning that during the independence era, Ukraine has more
than once tried to formulate such a program. There was President Leonid
Kuchma's 1994 report, "On the Road to Radical Economic Reforms," Valeriy
Pustovoytenko's plan for Ukraine through 2010, and Viktor Yanukovych's
strategy for economic and social development through 2015 - and that's far
from a full list.

However, all these fine starts somehow or other ended up as just piecemeal
projects, lacking any methodology. It's possible that what's at fault is the
lack of continuity of power in Ukraine: governments often change, and
instead of finishing the work of its predecessors, the new team prefers to
invent the wheel anew.

The business climate also suffers from this lack of consistency. Native
entrepreneurs need to know what conditions they're going to work under for
the next several years. And foreign investors find it problematic to invest
money in this country given its hazy economic situation.

After an almost two-year lull in Ukraine, there should now appear a
strategic plan - it's expected that Yushchenko will speak out about it in a
message to the Rada this January.

Judging from the pronouncements that the president and the prime minister
have made, it's clear that they're planning to liberalize the Ukrainian
economy. The main proof of this is Yushchenko's intriguing statement
that in the next three months a capital amnesty will be declared.

The idea is ambitious, but in light of the upcoming parliament elections
it's fantastic - it's hard to see how parliament deputies will approve the
necessary legislation, since in the eyes of the electorate such a move would
amount to "letting the oligarchs off the hook."

And the president didn't explain how he's going to motivate people to come
clean who are doing business off the books. The advantage they'll get from
legalization is doubtful, and as soon as it occurs, they're going to have to
pay 13 percent on their declared capital. The prime minister also still
hasn't been able to say how this notorious amnesty is going to be realized.

He did, however, explain in the most straightforward way that no one should
count on essential changes in tax legislation - because of the elections,
parliament simply won't have time to effect them, or to include them in the
2007 budget.

The obvious conclusion is that the government is hampered in its plans to
develop the country's economy by the election. The election is an enemy of
long-term planning, because it doesn't bring fast results.

At the same time, elections are part of the burden of democracy, and they
don't hamper Western politicians from drafting long-term economic policies
and resorting to unpopular methods in the interests of future progress.

But if the government can't allow itself to make its stand on liberalizing
the economy or to trust the market's invisible hand, then it can approach
the problem from the other side.

It can define priorities, and make developing them a long-term project.
Such priorities might be serious investments in the government's transport
potential, or in agricultural innovations.

If we, as Ukrainians, are as smart as it seems we are, then we should
make an effort not to be so poor.  -30-
--------------------------------------------------------------------------------------------------
Katerina Panova is a reporter for Korrespondent magazine, in which
this article first appeared. Translated from Russian by Andrey Slivka.
LINK: http://www.kyivpost.com/opinion/oped/23592/
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[return to index] [The Action Ukraine Report (AUR) Monitoring Service]
========================================================
2.  RADICAL REFORM NEEDED IN UKRAINE IMPOSSIBLE AT
      PRESENT SAYS PRIME MINISTER YURIY YEKHANUROV
   No pension, housing, public utility, health care, tax or administrative-
   territorial reforms now and we cannot dare to begin structural reform.

Interfax, Kyiv, Ukraine, Monday, December 12, 2005

KYIV -  It will be impossible to carry out radical reform in Ukraine 
in the near future, Prime Minister Yuriy Yekhanurov  said  in  an 
interview  published  in  the  Monday issue of Ekonomicheskiye
Izvestia.

"I  think that Ukraine is prepared for reform, but the main problem
is reform  technique.  I  have studied our constitution closely and have
realized  that  no  reform  can  be  achieved  in the near future. Their
implementation would prove impossible," he said.

The  time  to  have  implemented  reform  was last spring, when the
authorities  enjoyed "a colossal amount of confidence," Yekhanurov
said, adding that this window of opportunity had now been missed..

Ukraine  will  not  be able to push through pensions or housing and
public utility reforms in the foreseeable future, the premier said. "Nor
will there be any health care or administrative-territorial reforms in
the near future and we cannot dare to begin structural reform.

We want to make  the  transformations  painless. We are against
surgery, we want therapy, therefore we will develop slowly," he said.

Tax  reform  will not be quick either, Yekhanurov said, saying that
such reform may be possible in 2008.

Ukraine  should  use common sense in the development of the economy
and authorities'  attitude  to  business,  Yekhanurov said. Common sense
means that  the  government  should not pressurize, but instead regulate
the solution  of problems which economic entities are unable to solve on
their own," he said.  -30-
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3. UKRAINE GUARANTEES RUSSIAN GAS DELIVERIES TO EUROPE

Associated Press, Kiev, Ukraine, Monday, December 12, 2005 

KIEV, Ukraine - Ukrainian President Viktor Yushchenko promised Monday
that Ukraine will guarantee Russian natural gas deliveries to Europe, as
Moscow and Kiev bicker over gas prices in a dispute that could disrupt
supplies westward. The European Union gets almost half of its gas imports
from Russia, mostly piped through Ukraine.

"Ukraine has given a state guarantee that the transit will be secured, and
this guarantee is unconditional," Yushchenko said, according to his office.

Moscow has proposed more than tripling the price of gas from the current
US$50 per 1,000 cubic meters, a proposal rejected by Ukraine.

Ukraine was "ready to pay for gas exclusively on a market basis, however
with a gradual transition period," Yushchenko said, adding that he hoped
Russia would respond.

Ukrainian officials had earlier warned that if the price went above US$95
per 1,000 cubic meters, Ukrainian factories would stop being profitable.

The latest round of negotiations were underway in Moscow, and Yushchenko
expressed hope that "a mutually beneficial resolution" would be found. He
said that Ukraine's Fuel and Energy Minister, Ivan Plachkov, went to the
meeting armed with "a packet of proposals."

Amid late-night negotiations in Moscow, the ITAR-Tass news agency quoted
Russia's Ministry of Industry and Energy as saying that the two sides "hope
to reach an agreement on the question of gas before the end of the year." No
one could be reached at the ministry for comment late Monday night.
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4.  GAZPROM THREAT TO CUT SUPPLIES OF GAS TO EUROPE

By Tom Warner in Kiev, Financial Times
London, UK, Mon, December 12 2005

Russia's Gazprom on Monday threatened to reduce supplies to Europe next
year unless Ukraine agrees to pay market prices for its gas. Ukraine takes
some gas Russia exports via pipeline in lieu of transit payments.

Alexander Medvedev, the Gazprom executive in charge of exports, said
that if no agreement was reached by the new year, Gazprom would limit
the volume of gas crossing the Russia-Ukraine border from January 1 to
the amount contracted by its other European customers and excluding
any portion for Ukraine.

If Ukraine maintains it has the right to continue taking a portion of the
gas as payment for transit, Gazprom would regard that as "unsanctioned
removal of gas or, in other words, theft". "Ukraine would be fully
responsible for reduction of supplies to Europe", he said.

Russia has been demanding higher prices from most of its former satellites
in eastern Europe but this dispute is more serious because Ukraine's
pipelines carry about 20 per cent of the European Union's gas supply and
about 80 per cent of Russia's gas exports.

Ivan Plachkov, Ukraine's energy minister, was in Moscow on Monday for
talks with Viktor Khristenko, Russia's deputy prime minister for energy, and
Alexey Miller Gazprom chairman .

A contract signed in 2003 gives Ukraine the right to take about 18 per cent
of the Russian gas that transits through its pipelines. Russia wants a new
agreement that would see Ukraine make cash payments at "European" prices,
which would, in effect, lower transit costs.

Ukraine says the contract cannot be changed without its consent but the
threat of a cut-off could force it to reconsider. Ukraine gets about 30 per
cent of its gas through the gas-for-transit barter deal and also imports
another 45 per cent from Turkmenistan via Russia.

Last week, a Ukrainian presidential administration official said Russia's
naval base in Sevastopol could, in turn, be asked to pay "European" rents.
Russian officials said the base's contract was not negotiable.  -30-
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5.   BUILDING COMPANIES CAUSE SECOND 2005 BOND BOOM 

ANALYSIS: By Roman Bryl, Ukraine Analyst
IntelliNews-Ukraine This Week, Kyiv, Ukraine, Mon, Dec 12, 2005

About 15 issuers make UAH 1.3bn bonds emissions
during last days of 2005 -----

During the last days of this year Ukraine will once again experience a boom
on the bond market. More than 15 issuers unveiled plans to make bonds
emissions. These issues will total UAH 1.35bn (USD 270mn) in December.
During the last 11 months the State Commission for Securities and Stock
Exchange (SCSSE) registered 233 bond emissions worth UAH 6.2bn
(USD 1.24bn).

To remind you Ukraine experienced the sharp increase of activity on local
bond market in H1/05. The total volume of bonds issued exceeded more than
3-fold the H1. Along with large amount of corporate bonds issues, this
summer we observed series of big municipal bonds issues.

SCSSE reported that 136 bonds issues were registered in H1 worth USD
613mn. June 2005 became the most active month for bond emissions with
USD 146.9mn of bonds issued.

Market conditions not good for bond placements -----

Nevertheless, the supply of bonds scheduled in December will exceed by
2-fold demand for them, some experts considered. The demand is low
because recently more profitable alternatives for investment appeared.
For example, interest rates for deposits are higher that for bonds.
Moreover, this situation resulted in a 17% rise of bonds' yield, but still
this was not enough to attract investors to bonds.

Besides liquidity on the interbank marked and the end of financial year
moved some banks to disperse their high risk and low profitability
securities, including bonds. The situation with oversupply on the bonds
market will, probably last until the beginning of 2006, when banks and
investment companies revise their investment plans.

Three municipalities to issue UAH 200mn bonds in December -----

In spite such situation on the market, issuers did not postpone their
emissions. For example, 3 municipalities plan to issue about UAH 200mn
bonds in December or in the beginning of 2006. That will be debut
emissions for Cherkassy and Vinnitsa (UAH 5mn and UAH 20mn
respectively).

Odessa municipality tries to restore its good credit reputation after
default in 1997 -----

Odessa intends to issue of municipal bonds worth UAH 150mn. The bonds
have 2-5 years maturity period and interest rate of 12-14%. The emission will
have several series: A series worth UAH 5mn and B series of UAH 70mn will be
placed for 3 years with 13% interest rate; period of circulation of UAH 30mn
C series bonds with 14% of interest rate will mature in 5 years.

UkrSibbank will stand as an underwriter of the emission. However, it is not
clear whether the bank will be the only the underwriter. Odessa municipality
still did not make the final decision regarding the numbers of underwriters.

When Odessa unveiled its plans to issue bonds investors gave positive
outlook on these securities. But taking into consideration current situation
on the market the bonds yield should be not less than 15% to attract
investors. These are bad news for Odessa officials that battle to restore
good credit reputation of the municipality.

To remind you in 1997 Odessa issued 1-year UAH 61mn bonds with 50%
 interest rate. But in next year the municipality failed to pay off bonds.

On Jul 15, 2005 Odessa informed about its intention to issue UAH 300mn
bonds, but FinMin banned the emission because of the previous default.
After several months of consultations FinMin finally allowed Odessa to
issue bonds, but demanded to cut its volume 2-fold.

Banks also continue to be active on bond market -----

Besides municipalities building companies and banks will be the major
issuers in December. Banks will issue about UAH 220mn bonds during
this month. Forum Bank plans to place its UAH 100mn bonds on Dec
14, which have 3-years maturity period and 11.5% interest rate.

On this date Alfa-BankUkraine also scheduled the placement of UAH 50mn,
5-year bonds with 13% of interest rate. And finally Ukrsotsbank in the mid
of December will issue UAH 70mn bonds with 12% of interest rate. The
bonds have 3-year maturity period.

The building companies presently main players on bond market
Plan to issue UAH 900mn bonds in December

However, building companies will be the biggest bonds issuers this month.
The total amount of bonds they plan to issue is UAH 900mn (USD 180mn).

Kovcheg to issue UAH 300mn to unnamed specific investors -----

Kovcheg company will make the largest emission among building companies.
It will amount UAH 300mn and will be one of the largest among private
companies in Ukraine.

The bonds have 4-year maturity and 8% interest rate. The funds attracted the
company will use to finance building projects in Kyiv Pechersk district.
Kovcheg will not use underwriter's services, which makes us believe that the
bonds will be sold to specific investors.

The names of such investors were not disclosed. Thus, this may mean a
hidden capital increase. However, there is not enough reliable information
to prove this suggestion.

In 2001 Kovcheg issued 9-year bonds worth USD 40mn. The company
was founded in 2001 and it was involved in leasing office areas and buildings.

Besides Kovcheg 4 other building companies plan to
make big bond emissions -----

Besides Kovcheg another building company Komfort-Invest plans to issue
bonds worth UAH 150mn. Securities will be issued by 3 series: K and L
series of UAH 25mn each with 14% and 16% interest rates each. The third
series M bonds will be worth UAH 100mn with 22% interest rate. All bonds
will have 6-year maturity period.

In the next 30 days Avantar building company will make UAH 140mn bond
emission to attract funds for building 2 residential houses.  The
circulation period of the bonds will be 30 months. Other 2 companies Novy
Striymaterialy and ParM will make similar emissions worth UAH 100mn each.
The bonds will mature in 10 years.

Building companies are the first corporation to boost
corporate bond market in 2006 -----

The activity of building companies on the bond market shows the new trend
that differs from the original of bond boom of the mid 2005. Municipalities
and banks were the main issuers then.

Presently the corporations took the lead. It is expected that they will
continue to increase the amounts of their bonds emission in 2006. Bonds
issues still continue to be the most effective way for corporations to
attract funds. Undeveloped stock market in Ukraine does not allow
companies to raise funds, for example, by means of IPO.

At the same time present oversupply on the bond market does not allow
companies to lower interest rates on bonds. In mid 2005 IntelliNews
predicted that interest rates would fall below 10% average by the end of
2006 or in the beginning of 2007.

Such low interest rates will indicated that Ukrainian bond market is almost
completely formed. Current situation on the market confirms our forecast
that interest rates of bonds will not drop in the next 1-1.5 years.
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6.           AES UKRAINE TO INVEST US 100 MILLION IN AES
         KYIVOBLENERHO AND AES RIVNEOBLENERHO BY 2011

Ukrainian News Agency, Kyiv, Ukraine, Mon, December 12, 2005

KYIV - The AES Ukraine power distribution company intends to invest USD
100 million in its regional power distribution companies AES Kyivoblenerho
and AES Rivneoblenerho by the year 2011. AES Ukraine's Director Larry
Levsley [Garry Levesley] announced this at a press conference.

AES Ukraine plans to invest UAH 100 million in AES Kyivoblenerho and
UAH 55 million in AES Rivneoblenerho in 2006.

According to Levsley, a large proportion of the money will be spent on
development and modernization of the regional power distribution companies'
networks.

According to him, the AES Ukraine is presently agreeing the investment
programs of the companies with the Fuel and Energy Ministry.

As Ukrainian News earlier reported, the International Finance Corporation
has provided a loan of USD 50 million to AES Ukraine.

AES Ukraine owns the AES Kyivoblenerho and AES Rivneoblenerho regional
power distribution companies.

AES Washington Holdings B.V., which is a subsidiary of the AES Silk Road
company (United States), bought 75% + 1 share in each of Kyivoblenerho and
Rivneoblenerho from the State Property Fund in 2001. The companies were
renamed AES Kyivoblenerho and AES Rivneenerho following their purchase.

The AES corporation operates 113 power generating facilities and 17 power
distribution companies in 27 countries. AES Silk Road is one of the world's
largest producers and suppliers of electricity

At the end of the first half of 2004, AES' net revenues in Ukraine amounted
to UAH 0.5 billion while its net profit amounted to over UAH 65 million. The
corporation serves over 1.2 million consumers over an area of 50,000 square
meters in Ukraine.  -30-
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FOOTNOTE: AES is a long-time active member of the Ukraine-United
States Business Council headquartered in Washington, D.C.
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7. AES UKRAINE REACHES SOFTWARE-LICENSING AGREEMENT
                             WITH MICROSOFT UKRAINE
         Microsoft says deal is largest in Ukrainian energy industry

Ukrainian News Agency, Kyiv, Ukraine, Monday, December 12, 2005

KYIV - AES Ukraine, which owns the AES Kyivoblenerho and AES
Rivneoblenerho regional power distribution companies, has signed an
agreement with the Microsoft Ukraine company on legalization of software.
AES Ukraine's Director Larry Levsley [Garry Levesley] announced this
at a press conference.

According to Levsley, the company and Microsoft Ukraine signed two
corporate agreements under which AES Ukraine acquired licenses to all
the Microsoft software products that will be used in AES Kyivoblenerho
and AES Rivneoblenerho. The relevant project is intended for three years.

According to Microsoft Ukraine's Director-General Valerii Lanovenko, this is
the largest deal in the Ukrainian energy industry.

As Ukrainian News earlier reported, AES Washington Holdings B.V., which
is a subsidiary of the AES Silk Road company (USA), bought 75% stakes in
each of Kyivoblenerho and Rivneoblenerho from the State Property Fund in
2001. The companies were renamed AES Kyivoblenerho and AES Rivneenerho
following their purchase.

The AES corporation operates 113 power generating facilities and 17 power
distribution companies in 27 countries. AES Silk Road is one of the world's
largest producers and suppliers of electricity.

At the end of the first half of 2004, AES' net revenues in Ukraine amounted
to UAH 0.5 billion while its net profit amounted to over UAH 65 million. It
serves over 1.2 million consumers over an area of 50,000 square meters in
Ukraine.  -30-
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8.  ADVANCED DIGITAL BROADCAST (ADB) ESTABLISHES NEW
RESEARCH AND DEVELOPMENT CENTRE IN KHARKOV, UKRAINE
                    ADB now has five R&D Centres located in Europe

PRESS RELEASE: Advanced Digital Broadcast (ADB)
Geneva, Switzerland, Monday, December 12th, 2005

GENEVA - Advanced Digital Broadcast, a leading supplier of digital TV
systems and software solutions for interactive television, announced today
that it has established a new Research and Development (R&D) Centre in
Kharkov, Ukraine. ADB now has five R&D Centres located in Europe.

"The rapid growth of ADB's Internet Protocol TV (IPTV) business requires
extensive and high-quality engineering resources", comments Philippe
Lambinet, CEO of ADB. "ADB Group's average sales growth in the last two
years has exceeded 50% per annum; this growth of our business, combined
with our increasing coverage of all technical areas of digital TV,
necessitates sustained growth of our engineering teams".

Mr. Oleg Rudenko, current professor at the Kharkov National University of
Radio Electronics (KNURE) has been named Managing Director of ADB
Ukraine.

"ADB believes that Prof. Rudenko's broad experience and knowledge of the
local scientific community is a key asset to the company", comments Prof.
Dr. Janusz Szajna, ADB's Executive Vice President and President of ADB
Poland. "Prof. Rudenko is the ideal person to build and lead an excellent,
highly specialised and well-educated team of engineers.

ADB intends to replicate the same successful processes in Kharov as
pioneered in Zielona Gora, which is now universally recognised as one of the
best R&D centres in the industry."

"Kharkov, Ukraine's second largest city holds rich engineering resources and
boasts a tradition of impressive scientific and university based research,"
adds Mr. Krzysztof Kolbuszewski, Chief Technical Officer of ADB. "This
tradition comes from a high concentration of space research centres, which
the former Soviet Union had located in Kharkov.

It represents a massive source of highly educated individuals with superior
knowledge of mathematics and physics that is imperative to the development
of advanced software products".

Building on its success of over 10 years experience in designing and
developing digital television equipment, ADB intends to create an extremely
innovative team of young, uniquely talented programmers and electronic
engineers. These new members will concentrate mainly on highly advanced
technology, such as new solutions for IPTV.  -30-
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LINK: http://www.adbglobal.com/media/20051212.htm
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9.  LARGE RUSSIAN RETAILER PYATEROCHKA PLANS MAJOR
         BOOST IN ITS OPERATIONS IN UKRAINE DURING 2006
   Russia's largest food & nonfood products retailer to open 30 new stores

RosBusinessConsulting (RBC), Moscow, Russia, Mon, Dec 12, 2005

MOSCOW - Pyaterochka plans to open no less than 30 stores in Ukraine
by August 2006, the company's memorandum stated. In July 2004 the
food retailer sold a franchise in Ukraine, and there are 11 stores operating
in the country at the moment.

The retailer intends to promote its brand in Kazakhstan as well, where it
currently has 25 stores. The number of its own and franchise stores
increased by 26 and 69 percent respectively in January-September 2005.

As of October 1, 2005 Pyaterochka, the largest retailer of food and
nonfood products in Russia, had 652 stores, 155 of which were located
in St. Petersburg and 148 in Moscow.   -30-
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LINK: http://www.rbcnews.com/free/20051212174811.shtml
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10. UKRAINE: EPAM PLANS SOFTWARE OUTSOURCING CENTERS 
    Two regional development units will be targeted at clients in the European
              Union and the U.S., the New Jersey-based company said.

By W. David Gardner, TechWeb News, USA, Tue, Dec 6, 2005

NEW JERSEY - EPAM Systems, which operates several software
outsourcing centers in Central and Eastern Europe, has announced it
plans to establish several centers in Ukraine.

In reports sent by the company Tuesday, EPAM said it plans to recruit at
least 200 employees in the former Soviet Union state and to establish a
headquarters in Kiev. Two regional development centers in Ukraine will be
targeted at clients in the European Union and the U.S.

"Ukraine has a large and very talented pool of software engineers," said
Karl Robb, EPAM executive VP of Global Operations, in a statement. "The
traditional focus and strength of the education system, which has been very
well-maintained since the break up of the Soviet Union, combined with
Ukraine's deep legacy in defense and high-technology industries provides a
greater than average supply of first-class engineers with experience in
complex software development."

EPAM maintains its U.S. headquarters in Princeton, New Jersey, and
European headquarters in Budapest. The firm's co-founder and CEO
Arkadiy Dobkin left his native Soviet Union several years ago and
emmigrated to the U.S. where he held several technical positions in
American companies. EPAM Systems was established in 1993 in Princeton.

Interest in software outsourcing in Ukraine has been increasing since the
country began democratic reforms in recent months. In the past, political
turmoil in the area proved problematic for at least one U.S. company that
had sent work to a Ukrainian outsourcing company.  -30-
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http://www.techweb.com/wire/ebiz/174901061;jsessionid=KUEIRWJ3MCLBSQSNDBGCKH0CJUMEKJVN
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11.   UKRAINE VINEYARD SOARS ON MODERISATION DRIVE
               Grape harvest yield four times above national average

By Angela Drujinina, Central & Eastern Europe FoodIndustry.com
Montpellier, France, Tuesday, December 12, 2005

UKRAINE - Modernisation has helped one of Ukraine's biggest wineries to
a grape harvest yield four times above the national average, demonstrating
how it is possible to add that personal touch and remain competitive.

Tavria-1, a vineyard that belongs to wine group Tavria, managed to gather
125-130 centners of grapes per hectare this year, well above the national
average of 28. The vineyard's 'experimental' vines achieved 405 centners.

"Such high indexes were not only achieved by respecting the correct
technology, but also by correctly protecting plants against diseases and
pests, and using the latest science and specialised machines," said Natalya
Tsarulikova, chief agronomist of Tavria-1.

Tavria uses intensive planting, with a crop density between 3,900 and 5,500
bushes, It also uses drip irrigation, a process developed in Israel and
known to save on water, and has developed a system for adding fertilisers
and microelements directly through this drip irrigation system.

The system is used for a range of Tavria grape varieties, including
sauvignon, merlot and chardonnay. It is also used on grapes for cognac
production.

Tavria-1, which through Tavria forms part of Ukraine's First National
Winemaking Holding, said the quality of this year's harvest had been
excellent. "The sugar content of the grapes was about 20-25 per cent, which
was the highest index both among Tavria farms and in Ukraine as a whole,"
Tsarulikova said.

The Tavria-2 vineyard also put in a good performance this year. "The sugar
content was in average 21.2 per cent, while the average [in Ukraine] is only
17 per cent," said vineyard director Alexandr Feodosov.

"Taking into account the fact that in average, the harvest from one hectare
is not more than 50 centner/hectare, we can consider the harvest of the
season 2004-2005 successful both from the point of view of quality and of
quantity."

Tavria's director, A. Sidorenko, said: "One more reason for our success is
that we never forget about people, about stimulation, about their importance
as professionals. So, we are not 'fighting' for the harvest, we are just
getting prepared for it and we use the time, equipment and resources
correctly.

"These technologies give us competitiveness in view of Ukraine entering the
World Trade Organisation, and help us to get prepared for admission to
European Union." Tavria is already one of Ukraine's biggest winemakers with
2,600ha of agricultural land.

The group's owner, the First National Winemaking Holding, works under
another corporation called Logos, which is the exclusive representative of
French cognac specialist Remy Cointreau in Ukraine.  -30-
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http://www.cee-foodindustry.com/news/ng.asp?n=64490-wine-ukraine-technology
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12. UKRAINE: IN TWO YEARS THE MARKET FOR FRESH SALAD
                                COULD INCREASE 50 TIMES
          Dr. Lee says Ukrainian salad market has only begun to develop.

Agricultural Marketing Project (AMP)
Kyiv, Ukraine, Friday, December 9, 2005

KYIV - The international practical seminar "Salads of Ukraine 2006" was
held on December 8, 2005 at Kyiv National Agrarian University; more than
100 produce business specialists from 5 countries participated in this
event. The participants received valuable and exclusive information about
the potential of fresh salads market development.

Representatives from Ukrainian, Russian, Dutch, Moldavian and Georgian
companies took part in the seminar. The companies OLVITA and RIJK
ZWAAN UKRAINE and Kyiv National Agrarian University organized the
event in conjunction with the Agricultural Marketing Project.

OLVITA is one of the most dynamically developing companies in the
Ukrainian produce business. First and foremost, it is know for frozen
vegetables, fruits and berries sold under the "Olvita" trademark. But,
OLVITA has recently entered the market of fresh salads with its very
own trademark, as this market is considered to be very attractive.

The company enjoys a complex of modern storage facilities for effective
long-term produce storage. This is why OLVITA is now able to participate
in the wholesale trading of fresh fruits and vegetables where there is a
great demand from Ukrainian supermarkets.

Yuri Boguslavskiy, OLVITA Director, indicated they plan to significantly
increase storage capacity for fresh produce. In addition, they plan to build
a complex for the post harvest handling and packing of salads, which will be
supplied by farmers from different regions throughout Ukraine.

During the seminar professionals shared information about the specifics of
production technologies, handling, storage and packaging of fresh salads,
which are popular worldwide. Dr. Robert Lee, Director of the Agricultural
Marketing Project, stated the size of the world salad market is about $10.5
billion.

China produces more than half of the gross volume and the USA and China
combined provide for about 70% of the world's salad production. The
Ukrainian salad market has only started to develop and in Dr. Lee's opinion,
it will grow dynamically in the near future.

"Even if Ukrainians eat half the salads of people in the US, this market
will reach the volume of 300,000 tons, compared to 6,000 tons of salads
produced now in the country", Dr. Lee stated.

We would like to point out that there are professional producers of fresh
salads in Ukraine and the number is growing each year, despite of the fact
that salad production is a complicated business. Ukraine also exports fresh
salads to Russia.

The climate of our country lets farmers produce salads in different regions
throughout the entire season. This is why the potential to increase salad
production is not limited by the interior market.

According to evaluations of the Agricultural Marketing Project, in the next
five years the size of Ukrainian salad market could increase up to between
$50-60 million and this creates fantastic opportunities for farmers and
other market players.  -30-
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LINK: http://www.lol.org.ua/eng/showart.php?id=31641
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13. CZECH EMPLOYMENT OFFICES MIGHT APPEAR IN UKRAINE
   Over 100,000 Ukrainians work either legally or illegally in Czech Republic

CTK, Prague, Czech, Republic, Monday, Dec 12, 2005

PRAGUE - The Czech Interior Ministry is planning to open employment
offices in Ukraine in the future that would recruit workers for Czech
companies, according to a series of its proposals, according to the daily
Hospodarske noviny that has these proposals at its disposal.

The paper writes today that the proposals are designed to radically change
the approach to foreign workers. They testify that the authorities' attitude
to foreigners who work in the Czech Republic illegally is changing, it says.

While foreign workers were labelled as criminals in the past, authorities
are beginning to view them as exploited victims of people trafficking, it
adds.

The very first proposal would radically change the current practice that
allows criminal elements and the "clients" labour agencies offering illegal
refugees as cheap workforce to Czech firms, to make profits on their ill
fate.

The Interior Ministry intends to introduce "the Portuguese model," under
which the Czech Interior Ministry would try to establish Czech employment
offices, for instance at its embassy in Ukraine. These offices would not
only recruit employees for work in the Czech Republic, but would also ensure
their transportation and accommodation.

Thousands of the current illegal foreign workers would thus surfaced from
the grey economy and the "clients," who take away most of the money they
earn in the Czech Republic for similar services, would be pushed out of the
running.

"Illegal employment of foreigners is on such a wide-scale in the country
that mere repressive measures will not help eliminate it," Jakub Svec from
the Interior Ministry says regarding the ministry's new strategy. The
government will discuss the new proposals next year.

According to estimates, more than 100,000 Ukrainians work either legally or
illegally in the 10-million Czech Republic at present.

The most resourceful Ukrainians who fled Ukraine due to its poverty and low
salaries have established "client" agencies in the Czech Republic in the
past years to exploit their compatriots who came later and have no chance of
getting work there without their help. (vv/t/pv)
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http://www.praguemonitor.com/ctk/?id=20051212F00511;story=Czech-employment-offices-might-appear-in-Ukraine---press
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14. MIGRATION TO IRELAND UNDERMINING THE ECONOMIC
                          AND SOCIAL FABRIC OF LATVIA
    Author of 'The Mushroom Covenant' warns of 'brain drain' in Latvia
         Latvia filling some of its own low paying jobs with Ukrainians

Ruadhan Mac Cormaic, Irish Times, Dublin, Ireland, Mon, Dec 12, 2005

Migration to Ireland is undermining the economic and social fabric of
Latvia, one of that country's authors has said.

Laima Muktupavela left her family in Latvia in 2001 to work on a mushroom
farm in Co Meath, where she and a group of Latvian colleagues earned
GBP125 a month and worked for several weeks at a time.

On returning home, she wrote a best-selling book, "The Mushroom
Covenant," based on the experience of Latvian immigrants in Ireland.

Muktupavela (43) said yesterday that a "brain drain" from Latvia is
hindering her country's development and leading to the break-up of families,
particularly in rural areas, as many of those who travel to Ireland and
other EU states opt not to return home.

"This book is like a bible in Latvian homes because every family has
somebody who left Latvia to work in Ireland," she said.

"We have very small salaries in Latvia, and these people left Latvia because
they need to have a normal life. They thank God that Ireland can help. But
people who go to Ireland, many thousands don't come back to Latvia.
That is a very big problem."

One effect of this trend is that Latvia is having to fill some of its own
low-paying jobs with immigrants from Ukraine and Belarus.

"We have a very small population - around two million - and if thousands
and thousands of educated, energetic Latvians leave Latvia, our employers
can't find workers here."

She added: "We were the first wave of Latvians [ in Ireland] in 2001, but
now many Latvians live there. Now I see that Latvians are building the
economies of other countries like Ireland."

Ms Muktupavela said she was the only one from a group of 11 Latvians who
returned home. This exodus depresses rural communities in particular, she
said, with many children living with their grandparents indefinitely, and in
some cases living alone.

"The father of my children took care of mine, and it was hard on them. But
one girl had four children in Latvia. She came to Ireland and then divorced
because she stayed in Ireland."

Ms Muktupavela said she and her colleagues lived together in a three-room
house while working on the mushroom farm. As she was the only
English-speaker among the group, she represented the workers in dealings
with their employer.

"I asked him different questions. I asked him about taxes and salaries and
why we were earning so little compared to Irish people. We cut the first
mushroom at 6am and the last at 8pm. For me that was a very bad memory.

"On Christmas Day, we got up at 5am, because the owner said we had
to supply the supermarkets with the mushrooms. When I asked could we
have more money for that work, he said: 'If you ask questions, you can
go home.'"

There are between 30,000 and 40,000 Latvians living in Ireland. -30-
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15. CRIMEAN TARTARS CALL KYIV TO RESTORE THEIR RIGHTS
           Voices calling for Kyiv to recognize the deportation as genocide

RFE/RL's Tatar-Bashkir Service/Interfax
Prague, Czech Republic, Monday, December 12, 2005

SIMFEROPOL - Members of the Crimean Tatar Congress gathered in the
main Crimean city Simferopol said yesterday that Ukraine's integration with
the West should not go forward until Kyiv restores Tatar rights.

Congressional delegates, issuing a statement at the end of the three-day
session, accused Ukrainian authorities of disregarding the rights of Crimean
Tatars, who were deported en masse by Soviet leader Josef Stalin in 1944.

RFE/RL's Tatar-Bashkir Service reported that congress member Timur
Dagci was among the voices calling for Kyiv to recognize the deportation
as genocide:

"Our problem -- the problem of Stalin's genocide of the Crimean Tatar
people -- is an undeniable fact, so I believe all countries, the United
Nations, and the European Union will recognize it and will decide that it
was indeed genocide," Dagci said.

Many Tatars have since returned to Crimea, but have been unable to
reclaim valuable land and property that was theirs before the deportations.

The Tatar Congress delegates called on the Council of Europe and the
European Union to make Ukraine's possible membership in the EU and
World Trade Organization contingent on their recognition of Crimean
Tatar rights.  -30-
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http://www.rferl.org/featuresarticle/2005/12/6a4a70da-2d13-4cc1-aca5-1f4e2464e11e.html
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          Power Corrupts and Absolute Power Corrupts Absolutely.
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16. FIRST LADY MEETS UKRAINIAN FEDERATION OF AMERICA
LEADERS & U.S. MEDICAL EXPERTS ON MEDICAL COOPERATION
    Blood safety, hemophilia diagnosing, prevention of virus infections, HIV

Press office of President Victor Yushchenko of Ukraine
Kyiv, Ukraine, Tuesday, 6 December 2005

KYIV - Kateryna Yushchenko, Head of the Supervisory Council of the
Ukraine 3000 Charitable Foundation, met with a group of U.S. citizens
that are interested in medical cooperation with the foundation.

Zhenya Chernyak, Chair of the Ukrainian Federation of America, Vira
Andrushchuk, President of the Ukrainian Federation of America, Evhen
Movchan, President of the Medical Institute, Charles Doerthy [Dougherty],
former U.S. Congressman, Roksolana Gorbova, Vice-president of the the
World Federation of Ukrainian Medical Association, Vira Pavlyuk, Hospital
to Hospital Project Coordinator, Valentyn Snisar, Deputy Health Minister,
Yuriy Derpak, Chief Doctor of the road station of blood transfusion of the
South-Western Railway were present at the meeting.

The participants of the meeting discussed ways to cooperate in the fields of
'blood safety', hemophilia diagnosing and treatment, and prevention of virus
infections and HIV. They also spoke about projects to train Ukrainian
doctors by applying modern technologies and methods. Then they
considered ways to implement the Hospital to Hospital program.

Following the meeting the American delegation went to the station of blood
transfusion of the South-Western Railway, and Yuriy Derpak showed them
round the facility. The guests suggested they should launch their first
project at this station to spread their experience throughout the country.

On December 6, the delegation is scheduled to visit Kharkiv to introduce
some new technologies in medical education.  -30-
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LINK http://www.president.gov.ua/en/news/data/5_4768.html
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17. BENEFIT CONCERT-CHRISTMAS: UKRAINIAN ORPHANAGES:
       Wednesday, December 14, 2005, 7:00 P.M. Falls Church, Virginia
Victor Visotsky, Falls Church, Virginia, Monday, Dec 12, 2005

FALLS CHURCH, Virginia, A concert that will benefit more than 900
children in 4 orphanages and T.B. Sanitarium in Ukraine will be held
on Wednesday, December 14, 2005 at 7:00 p.m. at 103 W. Columbia
Street in Falls Church, Virginia. 

In program will feature The Washington Balalaika Society Slavic
Male Chorus and the Youth Group of the New Life Church

Do not miss this opportunity to be blessed by helping orphanages!

WHEN: Wednesday, December 14, 2005, 7:00 PM
WHERE: 103 W. Columbia Street, Falls Church, VA 22046

COST: Free Admission, An Offering will be taken.  All proceeds
will be used for helping children. Contributions (tax deductible)
of any amount will be joyfully accepted.

FOR MORE INFORMATION:
Victor Visotsky, Tel. 571-594-4658. http://www.newlifedc.org
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18.  CHIEF RABBI OF UKRAINE AND FJC MAKE HEADWAY ON
             RESTITUTION OF JEWISH RELIGIOUS PROPERTY

Federation of Jewish Communities of the CIS (FJC)
Moscow, New York, Friday, December 9 2005

KIEV, Ukraine - Yesterday, the Ukraine State Department for Religious
Affairs hosted a meeting between Department Director Igor Bondarchuk and
national Jewish leaders - Chief Rabbi of Ukraine Azriel Chaikin and the
Chairman of the Board for the Federation of Jewish Communities of Ukraine,
Rabbi Meir Stambler. The Deputy Director of this department, Nikolayi
Novichenko, also took part in the conversation.

The two parties discussed several pressing issues regarding the activity of
the Chief Rabbinate of Ukraine and that of the FJC Ukraine, as well as
problems concerning the development of Jewish religious life in the country.

Mr. Bondarchuk assured the Jewish leaders of the support and cooperation
that Ukraine's religious organizations enjoy concerning the free development
of religious communal life.

The participants also addressed problems regarding the restitution of
religious property to Ukraine's Jewish communities. Igor Bondarchuk
promised to thoroughly consider this issue and to assist in returning Jewish
religious property back to its original owners.

Rabbi Chaikin and Rabbi Meir Stambler informed Igor Bondarchuk and his
deputy of the multitude of public Chanukah events that will soon take place
in Jewish communities across Ukraine.

They also spoke about the festive campaigns being led by the Chief Rabbinate
and the FJC Ukraine, including the distribution of 60,000 parcels containing
Chanukah Menorahs and holiday booklets, which are to be delivered to Jewish
homes throughout the country.

The officials from the Department for Religious Affairs expressed heartfelt
congratulations to Rabbi Chaikin, Rabbi Stambler and all Jews of Ukraine on
the approaching holiday. As the meeting drew to an end, the Jewish leaders
presented a Chanukah Menorah to the Department's Director and wished the
officials all the best in their work and their other deeds. -30-
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LINK: http://www.fjc.ru/news/newsArticle.asp?AID=335212
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19.       ANTI-DEFAMATION LEAGUE (ADL) TO U.S. HOUSE
     DELAY GRANTING UKRAINE NORMAL TRADE RELATIONS
              The university MAUP, actively promotes anti-Semitism

Anti-Defamation League (ADL), New York, NY, Tue, Dec 6, 2005

NEW YORK - The Anti-Defamation League (ADL) has urged the U.S.
House of Representatives to delay approval of Ukraine's graduation from the
Jackson-Vanik Amendment of 1974, thus continuing to deny it Permanent
Normal Trade Relations, while anti-Semitism persists at worrying levels.

The Jackson-Vanik Amendment was passed in 1974 to pressure the former
Soviet Union, which had imposed a "diploma tax" for Jews who sought to
emigrate, to end the "diploma tax" and eliminate barriers to free
emigration.

The Amendment links U.S. trade benefits, now known as Normal Trade
Relations (NTR), to the emigration and human rights policies of Communist
or formerly Communist countries.

Abraham H. Foxman, ADL National Director, issued the following statement:

"We expect more from democratic states than we do from totalitarian ones.
This year alone has seen a steep increase in acts of violence and vandalism
against Jews across Ukraine. There have been attempts to ban everything from
Jewish organizations to Jewish holy texts.  The university MAUP, with more
than 50,000 students enrolled, actively promotes anti-Semitism of the most
vicious kind.

While we recognize that Ukraine's President Viktor Yushchenko has issued a
statement against anti-Semitism, we believe the government must go beyond
words and take the kind of strong action we expect from a democracy.  Until
then there is no reason for the House of Representatives to agree to remove
Ukraine from Jackson-Vanik and grant beneficial trading status.

We should remember that it was the struggle against anti-Semitism which
inspired Jackson-Vanik in the first place. That struggle is not over."

The Anti-Defamation League, founded in 1913, is the world's leading
organization fighting anti-Semitism through programs and services that
counteract hatred, prejudice and bigotry.  -30-
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LINK: http://www.adl.org/PresRele/ASInt_13/4834_13.htm
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20.   WHY I HATE BEING THE TALLEST MAN IN THE WORLD
                        Ukrainian Leonid Stadnyk stands 8ft 4 ins tall
           "I'm the tallest man but I often feel one of the most helpless.
                                 This life is for smaller people."

Exclusive From Will Stewart In Podoliantsy, Ukraine
Mirror.co.uk, Online Edition of The Daily Mirror
London, United Kingdom, 12 December 2005

PODOLIANTSY, Ukraine - HE IS the world's most reluctant record
breaker. But Leonid Stadnyk's credentials are plain for all to see.
Standing at 8ft 4ins he is the tallest man on the planet. And still growing.

But the official record - as defined by the Guinness World Records - goes
to a Mongolian man by the name of Xi Shun, who is a whole seven inches
shorter.

The reason? Quite simply Leonid, 35, - who lives in the village of
Podoliantsy in Ukraine - hates his height and doesn't want to be famous
because of it.

In his small three-room home there is no bell, but the bark of his dogs
brings him outside as if in slow motion. He contorts his vast frame to get
through his front door - and as he straightens up again his head towers
above the apple tree and seems for a moment to disappear into the murky
clouds.

His handshake, unintentionally, almost crushes my knuckles. "I don't want or
need the fame this would bring so I have no desire to be in this Guinness
book," says Leonid softly and seriously, shaking his large head.

"To me, my height is a curse, a punishment from God, not something to
celebrate." He even shuns looking at himself in the mirror.

And here is why the Guinness records people are in such a pickle. They
have written to Leonid asking to check his vital statistic, but he's not
interested. "I refuse to be measured all the time," he fumes. "Why should
 I? What is to be gained from it? "I have more important things to do, like
getting through the survival course that is our life in Ukraine."

That's despite being on course, within a few years, to be the tallest person
ever. This record is held American Robert Pershing Wadlow, who reached
8ft 11in before his death in 1940. "It's true I am still growing," explains
a mournful Leonid. "It is a terrible nuisance to me."

Unable to verify his measurements, the 2006 Guinness edition can do little
else than name Xi Shun as the world's tallest man. "At the moment, we still
have the Mongolian guy as the record holder," explains a Guinness
spokeswoman patiently.

"We have contacted Stadnyk, but he seems very shy. He doesn't want us
around. So we have to stick to what we have." At school, ironically, the
Ukrainian was just about the smallest boy in his class. They used to call
him the Soviet equivalent of "titch". Academically, though, he was streets
ahead of his peers.

His life could have been so different if ham-fisted Soviet surgeons had not
bungled the operation on a benign brain tumour when he was 12. The surgery
cranked into overdrive his pituitary gland, which is responsible for
generating the hormones that stimulate growth. His condition, gigantism,
makes him grow at roughly a foot every three years.

It means he has size 27 shoes, which have to be specially made for his feet,
now some 17 inches in length. His gargantuan palms measure more than a foot
in diameter. And before he had a bed made to measure, he had to join two
together.

There is a sadness and a loneliness about this gentle giant. He blames his
height for many of the woes blighting his life in this downtrodden village.

"I was a vet and loved my work," he says, smiling a huge smile at the
memory. "But gradually I found that I couldn't get the shoes I needed in
winter to protect me from the frostbite. I couldn't keep on with this work."

Reluctantly, he gave up his job at the Yuri Gagarin Collective Farm - named
after another small man who became a giant, the 5ft 2 first man in space.

He worked instead on the family smallholding, growing fruit and vegetables
and tending the cows, pigs, horse and hens. "Stooping from my height to
pull up the weeds is not easy. It puts a lot of strain on my back.

"I'm the tallest man but I often feel one of the most helpless. This life is
for smaller people."

He remains deeply attached to his 63-year-old mother Halyna, who is now
disabled after suffering a serious hip injury. He spends his week working
his 1.8 hectare smallholding from before dawn until well after dusk. Even
so, the family cannot afford the medical costs to get her treated.

Locals say there have been women in his life - though if there is anyone
special now he is keeping quiet about her. Women supposedly like big men,
but there's no evidence of it here.

"I have a lot of acquaintances but no true good friends," he admits
honestly. "My mother is the closest person in the world to me. Maybe our
village is too small to meet more people, but I think it's because I'm so
different.

"If I could have one wish in my life, it would be that my mother could be
cured of her pain. "But if I could have two wishes, the second would be that
I could be just a normal size."

He'd love to come down from his tower, which he feels imprisons him. "This
world is not made for people my height. I dream about being the same size as
normal people. Alas, I know it can never happen."
                                  LEONID'S GIANT APPETITE
Leonid says he eats roughly 20 per cent more than the average man - and
drinks twice as much.
     Breakfast: Semolina and pumpkin porridge and four fried eggs cooked
by his mother.
     Lunch: A huge bowl of Ukrainian borscht plus a dozen or so potatoes
grown in his smallholding.
     Evening meal: Golubtsy, a local dish made from stewed cabbage rolls
stuffed with meat and rice. "This is my favourite," he says.  -30-
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21.    EUROPE FEATURES: UKRAINE'S ORANGE REVOLUTION

OUTSIDE VIEW: COMMENTARY
Contributed by Taras Kuzio and Jennifer Moroney
United Press International (UPI), Washington, D.C., Tue, Dec 13, 2005

WASHINGTON, DC, - Almost a year after Viktor Yushchenko became
president of Ukraine last January -- following his election as a pro-reform,
pro-Western candidate -- the nation faces tough new challenges as it moves
closer to its goal of integrating into the Euro-Atlantic community.

Yushchenko came to power after losing a first presidential election that was
riddled with fraud. The reformist Orange Revolution sparked street
demonstrations by hundreds of thousands of Ukrainians in favor of
Yushchenko, leading to a second election that he won.

But the president`s problems today won`t be solved by demonstrations,
rallies and speeches. He must govern while grappling with challenges greater
than any Ukraine has faced since it won independence from the Soviet Union
in 1991. To solve these problems, eloquent words and cheering crowds are no
substitute for the eloquence of action.

The Orange Revolution and Yushchenko`s election enabled Ukraine to resume
its transition to democracy and a market economy, an effort that stalled
under the semi-authoritarian and corrupt former President Leonid Kuchma.
Now greater effort needs to be undertaken in this area.

To show the Ukrainian people that the revolution has changed their lives and
not just their government, Yushchenko and his government need to
institutionalize freedom of the press, democratize the state and build on
the rebirth of civil society. A key step in this direction will take place
in January, when Ukraine will change from a Soviet-type presidential system
to a parliamentary system commonly found in much of Europe.

Once the parliamentary system is in place, Ukraine needs to ensure it holds
a free and fair parliamentary election in 2006. This would prove to the
watching world that the nation is fully committed to a democratic path.

As Ukraine implements the rule of law, it also needs to speed up the
campaign against corruption and organized crime. This should include holding
accountable those high-ranking Kuchma officials implicated in abuse of
office, election fraud and the killing of journalist Georgy Gongadze.

The Parliamentary Assembly of the Council of Europe issued a sharp reprimand
to Ukraine for failing to bring high-ranking officials from the Kuchma
regime to justice. This was followed by a European Court of Human Rights
ruling that said Ukrainian authorities failed to protect the life of
Gongadze and mishandled the investigation into his kidnapping and murder
five years ago. The ability of the Ukrainian courts to bring those
responsible for Gongadze`s murder to justice will be closely monitored.

With the election of Yushchenko, Ukraine has a chance to join NATO and
eventually the European Union. After the latest NATO-Ukraine Commission
meeting in Vilnius in late October, Ukrainian leaders now have five months
in which to encourage the United States and NATO to invite Ukraine into
NATO`s accession process -- known as MAP (Membership Action Plan) --
in mid 2006. If the invitation is extended, Ukraine would join current MAP
members Croatia, Albania and Macedonia.

A particularly bright spot for Ukraine is the positive and proactive
relationship of the Ukrainian armed forces with the U.S. Department of
Defense. In this regard, the United States has been working to help Ukraine
to achieve its defense reform, military professionalization, and
capacity-building goals. Much of this activity is focused on eventually
bringing Ukraine in line with the NATO membership criteria.

U.S. Defense Secretary Donald Rumsfeld is now an advocate of Ukrainian
NATO membership. Such membership would serve a step toward European
Union membership, which could realistically come during a second term for
President Yushchenko after 2010 if he wins re-election.

Under former President Kuchma, relations between Ukraine and the European
Union were unproductive. This was mostly because the Ukrainian government
was unwilling to implement the necessary political and economic reforms
required to entice the EU into offering Ukraine an associate agreement,
which is a half-step to full EU membership. Under the current regime, which
is more committed to Euro-Atlantic integration, real progress is likely.

Ukraine`s democratic revolution followed Georgia`s a year earlier and
Serbia`s in 2000. Yet, of all three revolutions, it is Ukraine`s that has
the best chance to succeed in building on these democratic breakthroughs and
consolidating a democratic market economy.

The outcome of the 2006 elections is as important as the process. An
invitation to join NATO and eventual integration into the European Union
is not likely to occur if pro-reform forces fail to win a parliamentary
majority.

To win NATO and eventually EU membership, the Orange Revolution
coalition will have to unite under a common goal -- Euro-Atlantic
integration by way of staunch political and economic reforms in Ukraine.
------------------------------------------------------------------------------------
(Taras Kuzio is a visiting professor in international affairs at George
Washington University and the author of 'Ukraine: Perestroika to
Independence.' Jennifer Moroney is a political scientist at the RAND
Corporation, a nonprofit research organization.)

(United Press International`s 'Outside View' commentaries are written by
outside contributors who specialize in a variety of important issues. The
views expressed do not necessarily reflect those of United Press
International. In the interests of creating an open forum, original
submissions are invited.)
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22.        POLICY WATCH: NO MORE COLOR REVOLUTIONS?

COMMENTARY: By Mark N. Katz, UPI Correspondent
Washington, D.C., Sunday, December 11, 2005

WASHINGTON - Georgia's 2003 Rose Revolution, Ukraine's 2004 Orange
Revolution and Kyrgyzstan's 2005 Tulip Revolution resulted in new leaders
who advocated democracy rising to power in all three of these post-Soviet
states.

The success of these three democratic "color revolutions" (as they
have become known) also led to expectations that similar ones might
oust ex-communist leaders elsewhere in the former USSR.

But after the staging of elections with results favorable to the
authoritarian regimes in Azerbaijan in November and Kazakhstan in
December, it appears increasingly unlikely there will be any more color
revolutions any time soon. The post-Soviet authoritarian rulers have
become more adept at thwarting them.

The three color revolutions so far occurred as a result of widespread
protest over falsified election results in these countries.

Factors contributing to these protests were:
     1) the presence of non-governmental organizations promoting
democratization both from the West and recently democratized countries;
     2) the ability of these groups to conduct exit polls that credibly
challenged the results announced by the regimes;
     3) the ability of the foreign and domestic media to focus national and
international attention on these protests; and
     4) the inability of authoritarian regimes to prevent widespread protest
from erupting combined with an unwillingness to take forceful action to
suppress it.

Increasingly fearful of being ousted in a similar manner, other ex-communist
authoritarian rulers have taken steps to prevent these factors from
occurring in their countries. They have placed tighter limits on the ability
of foreign and domestic NGOs to engage in democracy promotion.

They have also acted to prevent independent exit polls from being conducted
on election day. They have limited the ability of foreign journalists to
enter their countries or moving about in them without government
surveillance. They have dealt even more forcefully with local journalists
criticizing the conduct of elections.

Finally, they have imposed greater restrictions on the ability of the public
to protest election results, and have been quicker to use force to prevent
protests from becoming too large for them to suppress quickly and easily.

The Putin administration has taken advantage of other post-Soviet
authoritarian leaders' fears of color revolutions. Until recently, many of
these regimes had reacted to Russia's often crude efforts to dominate them
politically and economically by turning to the United States for protection.

The Kremlin, however, has actively promoted these regimes' fears the United
States is the instigator of democratic revolution. And indeed, many of these
regimes have turned back toward Moscow for protection from what they see
as a greater threat from Washington. While they see Moscow as wanting to
dominate them, this is preferable to post-Soviet authoritarian leaders than
being ousted.

But while the Kremlin and other post-Soviet authoritarian regimes claim
America is the instigator of the color revolutions, this is simply not true.
The U.S. government does not have the power to order hundreds of
thousands of protesters to take to the streets for days or weeks in
inclement weather.

It was popular outrage in these countries over fraudulent election results
that did this. Western NGOs and media, and even the U.S. government,
publicized and facilitated this to some extent, but did not cause it.

Limiting and controlling the presence of Western non-governmental
organizations and media may indeed result in the Kremlin and its
authoritarian allies elsewhere in the former Soviet Union being able to
prevent further democratic revolutions. But this will not end the popular
discontent over fraudulent election results and authoritarian rule that is
the principal cause of them.

The suppression of peaceful democratic revolutionary movements may not
lead to the stability of authoritarian regimes, but instead to the rise of
revolutionary movements that are neither peaceful nor democratic. The
Russians have been unable to suppress a few thousand such revolutionaries
in Chechnya. It is highly doubtful that they could suppress Islamic
revolutionary movements that could rise up any country in Central Asia,
much less all of it.

If the net result of Moscow's efforts to suppress the impetus for democratic
revolution in the Muslim republics of the former USSR is to increase the
prospects for Islamic revolution in them, the Kremlin may well come to
regret what it is doing now.  -30-
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Mark N. Katz is a professor of government and politics at George
Mason University, Fairfax, Virginia.
http://www.upi.com/InternationalIntelligence/view.php?StoryID=20051209-083447-1459r
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23. THE ORANGE REVOLUTION: PERSONAL RECOLLECTIONS

REMARKS: By Paula J. Dobriansky, Under Secretary for
Democracy and Global Affairs, United States Department of State
Roundtable: The Orange Revolution: A Year After
American Enterprise Institute (AEI), Washington, DC,  Dec 5, 2005

Thank you Leon [Leon Aron, AIE] for that introduction, and thanks to
you and your staff for organizing this roundtable. It is a pleasure for me
to be back at the American Enterprise Institute. I would like to recognize
Anders Aslund of the Carnegie Endowment for International Peace and
Taras Kuzio of George Washington University, who along with Leon
will contribute to what I am sure will be a very insightful panel
discussion.

Thomas Jefferson once said "We are not to expect to be translated from
despotism to liberty in a featherbed." Then, and now, a stable, prosperous,
orderly democracy is not something that any people can create in short order
and without arduous toils. At times -- indeed frequently -- the obstacles
can seem daunting and even insurmountable. But if you step back and look at
the sweep of history, especially modern history, it becomes clear that this
process often succeeds.

Haltingly, in fits and spurts, democracy, liberty and the rule of law have
taken hold in country after country. Such was the process in our own
nation -- we weren't perfect at the creation -- and such is the nature of
Ukraine. But the democratic evolution there is quite promising.

A year ago Saturday, the Supreme Court of Ukraine, acting on the clear
signal from the people of Ukraine, nullified a flawed election, upheld the
rule of law, and cleared the path that led to a true expression of the will
of the Ukrainian people. It marked a turning point in a stunning series of
events that would culminate in the inauguration of President Viktor
Yushchenko.

I had the honor of accompanying then-Secretary of State Colin Powell, who
led the American delegation to the inauguration. The atmosphere on that
unforgettable day was truly electric. Thousands of people had lined the
streets, many of whom had camped out. Orange banners, caps, and scarves
were everywhere. There was joy and euphoria that Ukrainians finally had
swept away the last vestiges of authoritarian rule and corruption, and
emerged as strong stakeholders in building a new, democratic Ukraine.

The atmosphere was both exciting and auspicious when President Yushchenko
made an official visit to the United States in April of this year. Congress
gave him the honor of an address to a joint session, which I also attended.
Yushchenko expressed gratitude for being invited to speak from the same
rostrum as great leaders like Winston Churchill and Lech Walesa.

He noted that "The Orange Revolution gave evidence that Ukraine is an
advanced European nation, sharing the great values of the Euro-Atlantic
civilization. Its citizens stand ready to guard their rights and freedoms...
For us, a European future is a powerful incentive to attain high political,
social and economic standards."

He was also received at the White House by President Bush, where the
two leaders launched a strategic partnership. President Bush noted that
Yushchenko was the first foreign leader he called after his inaugural
address last January, and said "You are a friend of our country and you
are an inspiration to all who love liberty."

The New Century Agenda Joint Statement by Presidents Bush and Yushchenko
focuses on concrete areas for cooperation. These include promoting democracy
and freedom, fighting terrorism, combating weapons proliferation, supporting
Ukraine's NATO aspirations, strengthening economic reform to increase
prosperity, combating trafficking in persons, and cooperating to fight HIV/
AIDS.

One year later, the Orange Revolution and its promise continue to inspire
Ukrainians and others. Much progress has been made. The Orange Revolution
brought together Ukrainians with diverse political views, but who were
united by the understanding that without a truly free democracy, their
voices would not be heard. Their unity was decisive. The tremendous
diversity among the Orange Revolutionaries also meant that as the political
process developed, differences would have to be addressed.

There has been much discussion about the breakup of the Orange Coalition
since the government was dismissed in September. Some question the stability
and future of Ukraine's democratic trajectory. Others see a chance to
rekindle the excitement and dynamism associated with the Orange Revolution.

Events of the past year remind us that we need to have realistic
expectations. No country has made the transition from Communism to
democracy and a market economy without some turmoil. This is normal, as
the emerging democracies in new Europe showed in the 1990s. Coalitions,
parties, alliances and individual players rise and fall -- this is part of
the very nature of the evolution of democracy.

Ukraine has encountered difficulties in turning from the exhilaration of the
Orange Revolution to the hard work of transforming Ukraine into a modern,
European state. But it is important to acknowledge the progress Ukraine has
made over the past year.

Today, the Ukrainian people have a sense of ownership in their country that
did not exist before the Orange Revolution. They understand the power of
democracy and freedom, and they are exercising that power every day.
Particularly impressive has been the development of civil society.

Today, Ukrainian civil society is rich and diverse, featuring hundreds of
groups, institutions and associations, which deal with a broad range of
national and local issues. During my most recent visit, I had an opportunity
to meet with some of the activists, who are using their new freedoms to
unleash their talents and creativity in ways designed to solve problems, and
empower people. It is, of course, the existence of a vibrant civil society
that is a key ingredient of a stable and mature democracy.

Ukraine has made significant progress in democratizing, and the world will
be closely watching the March Rada elections -- a real test of the Orange
Revolution's democratic gains. It is important the campaign and election-day
vote be free and fair, meeting international standards.

The success of these elections is doubly important as Ukraine has become an
important player in, and role model for, building democracy in the region.
Events in Ukraine have been an inspiration for those who still live under
governments that are not in power with the consent of the governed.

Ukraine is already actively promoting democracy abroad. This summer, the
presidents of Ukraine and Georgia signed the Borjomi Declaration, which
calls for leaders of countries within the Baltic-Black Sea-Caspian area to
create a Community of Democratic Choice.

They called on participants to commit to "freeing our region from all
remaining lines of division, from violations of human rights, from frozen
conflicts, opening a new era of democracy."

On December 2, I had the honor to represent the United States at the
inaugural session of the Community for Democratic Choice forum in Kiev.
Representatives from 23 countries, including nine heads of state, came to
this Summit to affirm their commitment to working together to consolidate
the democratic process through internal reform, and a sharing of best
practices with one another.

There will be follow-on meetings held throughout the region to develop and
implement action plans. This project, which the United States strongly
supports, is an excellent example of a region coming together on its own
initiative to take action -- in the spirit of the Community of Democracies,
and in response to the call for such action at the ministerial in Chile
earlier this year.

The prospects for democracy and freedom reaching Belarus are significantly
enhanced by international cooperation and aid involving Ukraine We are also
pleased that Ukraine continues to be committed to fighting terrorism, and
has expressed interest in assisting Iraq in training and reconstruction
projects. Moreover, we have valued Ukraine's role and contributions to many
international peacekeeping missions.

Together we have made good progress on our non-proliferation agenda, and
welcome Ukraine as a key partner in preventing illegal arms exports.
Ukraine's recent ratification of the IAEA Additional Protocol is highly
commendable. The U.S. led the initiative to offer Ukraine Intensified
Dialogue on NATO Membership Aspirations. Ukraine's relationship with
NATO now depends on Ukraine -- its ability to forge domestic support for
NATO membership and its willingness to meet NATO's performance-based
standards.

Following the Orange Revolution, Ukraine has renewed its commitment to
fighting corruption and strengthening rule of law. Some of the work in this
area goes hand-in-hand with streamlining and clarifying rules of investment,
so that abuses like the tainted privatizations of the Kuchma years will not
happen again, and that future steps toward a market economy will be taken on
a transparent basis. Fighting corruption is not easy -- but it is essential.

Indeed, one of the key characteristics of the Orange Revolution was that it
sought to bring in a new, clean team. Living up to those expectations is
critical to demonstrate to the Ukrainian people the differences between the
old and new government.

Ukraine has also reinvigorated efforts to join the WTO. It is a reflection
of Ukraine's commitment to participate fully in the community of democracies
and market economies. It is an important indication of Ukraine's desire to
base its economy on a system based on internationally accepted rules.

Toward that end, the Rada has passed legislation that will strengthen
protection of intellectual property rights and reduce barriers to trade.
Other pieces of legislation needed to join the WTO have faced stiffer
opposition by protectionist interests. We still need to see more progress
before Ukraine will be ready to join, but we are working closely with
Ukraine to realize that goal at the earliest possible date.

Ukraine now has law enforcement dedicated to fighting trafficking in
persons. Senior Ukrainian government officials, including Ukraine's First
Lady, have raised awareness of this key rule of law and human rights issue
by speaking out against trafficking. We are encouraging Ukraine to keep up
the pressure by ensuring convicted traffickers receive sentences that
adequately reflect the heinous nature of this crime.

An important part of my trip to Kiev last week was bringing together
American medical professionals, under the leadership of Representative
Lincoln Diaz-Balart, with Ukrainian counterparts and government ministers,
to determine how we can further assist the children victims of the Chernobyl
disaster. The United States has already provided more than $52 million worth
of humanitarian assistance, and we plan an additional $15 million shipment
next year.

There is also a strong desire on the part of private American citizens to
help. I visited the Kiev Clinical Children's and Maternal Hospital, together
with the Congressman and physicians, and heard directly from the Ukrainian
doctors about their training and equipment needs, which we will seek to
address through this public-private partnership.

The U.S. stands ready to assist Ukraine in all its efforts towards a better
future. Free and fair parliamentary and local elections in March 2006,
continued progress on economic reforms, and vigorous anti-corruption efforts
are crucial. These are important initiatives that must be seen through to
success: Ukraine's goal of joining NATO and the WTO are dependent on
progress in these areas.

We have every expectation that they will succeed, and that the inspiring
democratic transformation there will continue. When I spoke here at AEI,
almost a year ago to the day, about events in Ukraine, I quoted the famous
Ukrainian poet Taras Shevchenko.

There is a monument dedicated to the Ukrainian people and him near Dupont
Circle and he continues to serve as a symbol of the quest for Ukrainian
freedom. "Will there be truth among people?" Shevchenko wrote 144 years
ago, "There must be, otherwise the sun will rise and set on fire the whole
land."

Today, to a greater extent than anytime in recent history there is indeed
truth among the people of Ukraine. While hurdles to progress may at times
seem insurmountable, as we look back to Ukraine before the Orange
Revolution we can see very significant progress. It is my hope and
expectation that this evolution will continue.   -30-
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LINK: http://www.aei.org/events/eventID.1201,filter.all/event_detail.asp
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24.                      ANNA OF KYIV, QUEEN OF FRANCE
     Nadiya Nikitenko, Ph. D. in history, head of the Historical Research
    Department of the Sofiya Kyivska National Preserve, tells a story of
Anna, daughter of an eleventh-century ruler of Kyiv, and Queen of France.

By Nadiya Nikitenko, Ph. D, Head of the Historical Research
Department of the Sofiya Kyivska National Preserve
Welcome to Ukraine magazine, Pages 44-47
Kyiv, Ukraine, Issue 4 (35), November 2005

A monument to the eleventh-century French queen, Anna (Anne) of Kyiv,
daughter of Grand Duke Yaroslav I, was erected in the town of Senlisse on
June 22 2005. Among the guests of honour at the unveiling ceremony were
President of Ukraine Victor Yushchenko, UNESCO Director General
Koichiro Matsuura, and Mayor of Senlisse, Hartun Daien.

President Yushchenko said at the ceremony that it was an important event in
the development of cultural relations between France and Ukraine, and
evidence of the fact that "Ukraine and France met in the ancient town of
Senlisse in order to erect still another bridge between the histories of our
two countries."
                        ANNA OF KYIV, QUEEN OF FRANCE
Among the rulers of the state usually referred to by historians as Kyivan
Rus (or in more recent times, and in Ukraine in particular, as Rus-Ukraine),
Grand Prince Yaroslav I the Wise (978-1054) who, in the words of a
chronicle, ruled, as "the sole sovereign of the land of the Rus" from 1036
until his death in 1054, is considered to be one of the most significant
figures.

At the start of his reign in Novgorod, where he had been placed by his
father, Volodymyr, the ruler of Kyiv, and thus titular head of Kyivan Rus,
Yaroslav, defied his father and superior, and Volodymyr threatened war, but
the preparations for the war were aborted because of Volodymyr's sudden
death.

Yaroslav proceeded to consolidate his power by eliminating all other
pretenders to the throne of Kyiv, among who were his next of kin. Once he
secured his position of the sole ruler of the Land of Rus, he concentrated
on making the country he ruled a major power in Eastern Europe.

The status of the city of Kyiv was raised to that of a major European
capital, and its magnificence was marvelled at and described in laudatory
terms by foreign west European travellers.

Yaroslav fought and drove off numerous nomads of the steppes whose
disruptive raids were put an effective end to during his reign. He
encouraged construction of churches modelled on the best Byzantine
landmarks, he promoted learning and the arts.

Discarding the practice of having many wives and concubines (his father was
said to run a harem of 300 women), he seemed, in his years as the sole
Kyivan ruler, to be content with one wife, a Swedish princess, by whom he
had many children, nine of whom survived into adulthood.

Proving to be a prolific father as he was a wise ruler, he was naturally
concerned with arranging their future and he successfully had his children
married to foreign princes and princesses. Arguably, the most successful
arrangement was the marriage of his daughter Anna (Anne) to the then king of
France, Henry I*.

According to the Annals of the City of Maux, France, in the year 1048, a
French embassage, led by the Bishop of the city of Maux Gautier and minister
of the French Court Gasseline de Chalignac, arrived in Kyiv with a mission
of arranging marriage of the king of France Henry I with Anna, one of the
daughters of Grand Duke Yaroslav I.
                             PROPOSALS AND ALLIANCES
Why Anne? Why Kyiv, which was quite a distance away from France? There
is no consensus among the historians as to why the king of France wanted
to marry a princess from the ruling house of Kyivan Rus, the state that had
no political or economic relations with France, and that was situated at the
outskirts of Europe.

Several reasons are quoted as possible motivations for a French king's wish
to marry a princess from such a far away, alien country. The Roman Pope had
issued an edict that banned marriage between close relatives (in fact, all
the cousins seven times removed were included into the ban), both the
inbreeding adverse effects which had become visible, and religious grounds
being the possible grounds for the edict.

A more plausible explanation involves the rising power and might of the
Kyivan state alliance with which could come in handy one way or the other.
Henry I, feeling rather insecure on his throne, could have wanted to
establish links with a dynasty that claimed several princesses of the royal
blood, Byzantine and Swedish - it would add glamour to his own Capetian
dynasty, Byzantium still ranking very high in the early medieval Europe.

Henry, a widower after his first wife's death (she was Mathilde, a niece of
the German Emperor Henry I) could also have wanted to bring new, fresh blood
into the veins of his successors. He could have been told about Anna's
beauty and other attractive qualities such as literacy and sapience by the
Bishop of the City of Chalon-sur-Marne Roget who had visited Kyiv some time
before (this visit is mentioned in a gloss on the margin of the
twelfth-century Psalter of Odalric).

Anna who was twenty one when the French embassage arrived, had been earlier
proposed in marriage to the German Emperor Henry I - the one whose niece had
been married to the French King - but the marriage negotiations had fallen
through.

Henry could have been aware of that circumstance too and he, maybe a
romantic, might have had a good reason to go ahead and marry a golden-haired
girl from an exotic land. Such a marriage would also be a good way of
spiting the German emperor and establishing a link that would be helpful in
possible future confrontations resulting from the emperor's expansionist
policies.

Whatever the reasons, Henry must have found it to be a good bargain to marry
Anna, a young, well-read and beautiful woman, whose lineage was even more
illustrious than that of the French king himself. As a matter of fact, it
was quite unclear who was doing favour to who - France to Kyiv or Kyiv to
France, the latter being much more likely.

Yaroslav's wife was Ingegerd, the daughter of the Swedish king Olaf (she was
rechristened Iryna after marriage); their son Izyaslav was married to
Gertruda, the sister of the Polish king Kazimir; their son Svyatoslav was
married to the sister of the Bishop of Trier, Burchart; their son Vsevolod
was married to a daughter of the Byzantine Emperor Constantine IX; their
daughter Yelizaveta was married to Harald the Brave, an intrepid Viking with
a valid claim for the Norwegian throne which became his in 1047; their
daughter Anastasiya was married to Andrew I, the king of Hungary. To marry
into a family with such royal connections was, no doubt, to acquire a great
asset.
                               MARRIAGES AND REGENCY
Anna arrived in France in the late autumn of 1048. Her wedding and
coronation took place in May 1049, the Holy Trinity Day, in the Cathedral of
the city of Rheims, long the site of the coronation of French kings. During
the coronation ceremony, which was conducted by the Archbishop of Rheims
Guy de Chatilion, Anna took her oath placing her hand on the Gospel that she
had brought from Kyiv.

This Gospel since then was used in the coronation ceremonies of the French
kings all down the line until Louis XIY. The last French king to take an
oath with his hand on this Gospel was Charles X (as king of France -
1824-1830). At present the book is kept in safety at the central library of
the city of Rheims.

Little is known of how Anna was received at the French court, or how soon
she learned the French language. Some tension could have arisen when Anna
failed to produce an heir who was much desired. She prayed hard, addressing
herself to God and to St Vincent, the patron saint of the French, asking for
the boon of a son.

She pledged to found a monastery if she was granted her request. And
finally, either thanks to her fervent prayers, or more likely to the
untiring efforts of her forty-five year old husband (rather an advanced age
by the eleventh-century standards) in 1053, she gave birth to her first-born
son who was christened Philip (one of the possible motivations that
determined the name of the child was Anna's lineage - her grandfather
Volodymyr, converted to Christianity, married a Byzantine princess, who
was a representative of the Byzantine Macedonian dynasty that claimed its
descent from the Macedonian king Philip).

In 1060 Henry I died leaving the throne to Philip who was only seven years
old then. Anna became the regent ruling the country in the name of her son.
And she did found a monastery dedicated to St Vincent in Senlisse, not far
from Paris.

Only a chapel has survived. There is a monument to Anne of Rus that stands
next to the chapel with an inscription on the pedestal that says, Anne of
Rus, Queen of France, Founder of this Church in 1066.

Philip was not her only child. Her son Robert died in adolescence, and her
son Hugh (Hugues) joined the first Crusades. He was also the founder of the
Orleans branch of the French royal house. The Capetian dynasty ruled in the
direct line until 1328, and, through its Valois, Orleans and Angouleme
branches, it lasted until the year 1589, when after the death of Henry III,
the first of the Bourbons became king.

Anna must have taken a certain part in running the affairs of the state
since some of the official documents of the times of her husband Henry I and
her son Philip bear her signature. One document, dating from 1063, the
charter of an abbey, bears her signature done in the Cyrillic, that is, Anna
the Queen, with the Cyrillic script used to render the French word.

An arranged marriage can hardly be a union of love, respect and duty being
more likely feelings, and it is not at all surprising that Anna fell in love
while still married to Henry. Her paramour was Raul III Peronn, Count of
Crepis and Valois, who was the first to succumb to the charms of the fair
queen.

Raul, a married man, was a descendant of Charlemagne and a powerful feudal
lord to be reckoned with. Pope Nicholas II, learning of the queens'
extramarital affair, sent her a message, admonishing her and reminding her
of her obligations and responsibility before God, her husband and her
children.

But even after the death of her husband, there must have been some obstacles
on her way to a second marriage and the enterprising and lovesick Raul
abducted her during a hunt in a forest in the vicinity of Senlisse, and
announced his marriage to Anna.

The next pope, Alexander II refused to recognize this marriage and insisted
that Raul's marriage to Agnes of Baraban remain valid. When Raul persisted,
the pope excommunicated him, but the count did not "return into the bosom of
his family" as he was urged to do, and lived with his beloved Anna until his
death in 1074.
                                       LATER YEARS
Anna's regency officially ended in 1067 when Philip was fourteen and thought
fit to rule on his own. That means that Anna remained regent after she had
consorted with Raul. In 1071 Philip married Berthe of France and the
available evidence suggests that Anna was forced to leave the court
altogether and retire to her estates of Vernin of Chateaunef-sur-Loire.

There is some evidence that after the death of Raul she returned to the
court and was even engaged to a certain extent in the affairs of the state -
the document that confirms royal privileges to the Nunnery of the Virgin
bears her signature and she is referred to in it as "Mother of King Philip."

It is not known when Anna died or where she was buried. According to some
historians she returned to Kyiv to die; others claim that she died in France
and was buried in the Vilier Abbey not far from Forte-Aleps. Philip died in
1108 was buried in the Abbey of Saint Benut-sur-Loire. His tomb is still
extent.

In 1848, Antoine Marie Philippe Louis d'Orleans Duc de Montpensier
(1824-1890), the fifth son of the last king of France Louis Philippe came to
Russia on the invitation of Alexander III, tsar of Russia, to attend the
coronation ceremony.

He visited Kyiv and went to the Cathedral of Holy Sophia (Wisdom) of Kyiv
to worship and to pay homage to Grand Duke Yaroslav I who was buried in
the cathedral after his death in 1054.

The Grand Duke was Duc de Montpensier's distant ancestor through the
French Queen Anna of Rus. In 2001, another scion of the French royal family,
Charles Philippe Prince d'Orleans, went to the Holy Sophia Cathedral to pay
homage to the ruler of Kyiv who was one of his forbears.

The sarcophagus with the remains of Grand Duke Yaroslav still stands in
the side nave of the Holy Sophia Cathedral, a palpable link that unites the
histories of France and Ukraine.  -30
---------------------------------------------------------------------------------------------
* The reign of the King of France Henry I (c. 1008 - died Aug. 2, 1060) was
marked by struggles against rebellious vassals.The son of Robert II the
Pious and grandson of Hugh Capet, founder of the Capetian dynasty, Henry
was anointed king at Reims (1026) in his father's lifetime, following the
death of his elder brother Hugh.

His mother, Constance, however, favoured his younger brother Robert for the
throne, and civil war broke out on King Robert II's death (1031). The
younger Robert was given Burgundy in 1032, after Henry had sought refuge
with Robert, Duke of Normandy. From 1033 to 1043 Henry struggled with his
feudatories, notably Eudes of Blois and his brother Robert. In 1055, as the
result of an agreement made by Robert II, the county of Sens came to the
crown as the sole territorial gain of Henry's reign.

Henry helped William (the future William I of England), Robert's successor
as duke of Normandy, to quell his rebellious vassals at the Battle of
Val-aux-Dunes (1047), but he was thereafter usually at war with him - a
notable defeat for the king being that at Varaville (1058). Henry tried to
resist papal interference but could not prevent Pope Leo IX from holding a
council at Reims (1049). Philip, elder son of Henry's marriage to his second
wife, Anne of Kyiv, a Rus princess, was crowned in 1059.
----------------------------------------------------------------------------------------------
The article is illustrated with pictures taken from the book Istorychni
Romany (Historical novels), by A. Ladynsky published in 1984. Artists -
Yevhen Kapustin and Yuliya Alekseyeva. Photos are from Nadiya
Nikitenko's archive.
----------------------------------------------------------------------------------------------
LINK: http://www.wumag.kiev.ua/index2.php?param=pgs20054/44
--------------------------------------------------------------------------------------------
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