NEWSBRIEFS (08/11/96)

NEWSBRIEFS

IMF grants tranche of stand-by loan

KYIV - The International Monetary Fund granted Ukraine the fourth tranche of a $867 million stand-by loan, Reuters reported on August 1. The $100 million tranche was granted after the IMF board of directors gave a positive assessment of Ukraine's adherence to IMF guidelines on budget deficit and money supply. (OMRI Daily Digest)

Power to be cut off to deadbeat industries

KYIV - A new government resolution, signed by Prime Minister Pavlo Lazarenko on August 1, will cut off power to those Ukrainian enterprises that fail to pay their electric bills. Industry owes Ukraine's energy producers, including nuclear power plants and coal mines, 218 trillion kbv ($1.1 billion). Mr. Lazarenko said the situation is most critical in the nuclear power industry, where regular maintenance and repairs depend on timely payment by electricity consumers. The resolution also establishes penalties and fines on nuclear power stations that barter services, and provides for government licensing of intermediary firms that trade in energy. (OMRI Daily Digest)

Kuchma issues tax reform decree

KYIV - President Leonid Kuchma issued a decree on August 2 that sets guidelines for reforming the country's tax system. The Ukrainian government will use the guidelines to draft tax reform legislation, which will be presented to Parliament in September. The guidelines simplify Ukraine's tax system by reducing the tax burden on businesses and eliminating many loopholes and privileges. They also call for protectionist measures, including a tax increase on imports and new taxes on barter transactions. Acting Prime Minister for Economic Reform Victor Pynzenyk told Ukrainian Television that the government is cooperating with the World Bank on several tax reform projects, which may include some aid to fill any budget gaps the government may encounter during the transition to a new tax system. (OMRI Daily Digest)

Kuchma re-appoints Cabinet ministers

KYIV - President Leonid Kuchma re-appointed several ministers to the new Cabinet on August 5: Mykhailo Zubets, deputy prime minister; Vasyl Hureyev, economics minister; Valeriy Maleyev, minister of machine building, military industry and conversion; Valeriy Mazur, industry minister; Valeriy Samoplavsky, forestry minister; and Dmytro Ostapenko, culture minister. (OMRI Daily Digest)

Poor grain harvest expected in Ukraine

KYIV - Ukrainian officials predict that due to a drought and the poor financial state of the country's agricultural sector, this year's grain harvest will fall to 27.5 million tons, 2 million tons less than last year's harvest and on par with 1958-1959 levels, the newspaper Kiyevski Viedomosti reported on August 1. Meat and dairy production in 1996 has fallen by 12 percent and 5 percent, respectively. Ukraine's Ministry of Statistics reports that the number of private farms has risen by 488 to 35,300, but that most farms are still owned by the state or heavily subsidized collectives. (OMRI Daily Digest)

U.S. removes Ukraine from ban list

WASHINGTON - The United States has taken Ukraine off the International Traffic in Arms Regulations list, a State Department spokesman announced on August 2. He said it will not longer be U.S. policy to deny licenses for the sale or purchase of military equipment or services from Ukraine. The State Department lifted restrictions on six other former Soviet republics two weeks ago. (OMRI Daily Digest)

State Radio employees demand back pay

KYIV - Ukrainian State Radio employees have sent an appeal to the Ukrainian government demanding the payment of four months' worth of back wages, Ukrainian Television reported on August 5. The government owes radio employees 70 billion kbv ($378,000). Employees also complained that the government has not been paying the radio company's telephone and electric bills, which has caused random brownouts and disconnections. (OMRI Daily Digest)

Sevastopil seeks free economic zone status

SEVASTOPIL - An initiative group in Sevastopil has appealed to the Ukrainian government to approve their proposal to turn the Crimean port city into a free economic zone, Ukrainian radio reported on August 2. Valeriy Ivanov, a local official, said the group has sent documents to Kyiv proving the viability of a free economic zone in Sevastopil. The initiative group needs approval from the Ukrainian government to submit a package of some 60 bills regulating customs, currency and taxes to Parliament. According to Ukrainian legislation, Parliament must adopt a separate law on the creation of any free economic zone. (OMRI Daily Digest)

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