Lazarenko responds to New York Times (05/25/97)

Lazarenko responds to New York Times

OTTAWA - Prime Minister of Ukraine Pavlo Lazarenko sent a letter to the editor-in-chief of The New York Times on April 25 in response to the article "Ukraine Staggers on Path to the Free Market" published on April 9. Information about the prime minister's letter was released here by the Embassy of Ukraine.

Mr. Lazarenko emphasized that the article misrepresented the situation regarding the Ukrainian government's purchase of domestically produced grain, as well as his association with the company United Energy Systems. The article also created the impression that foreign companies are fleeing Ukraine, instead of entering in ever increasing numbers.

The New York Times quoted an American businessman as saying that the government of Ukraine last fall confiscated all grain produced in Ukraine.

According to Prime Minister Lazarenko, the government decided early last year that it needed to purchase grain to ensure that the Ukrainian people would have enough of this staple. The government bought 5 million tons at an average price that was close to world prices, not at the lower price that the newspaper cited, and any business was free to buy the rest.

In response to the charges repeated in the article that the Ukrainian prime minister used a stake in United Energy Systems to reap millions of dollars, Mr. Lazarenko said those charges were false. He has no stake in United Energy Systems.

Prime Minister Lazarenko also underlined that Ukraine is far from being the economic disaster portrayed by The New York Times. Foreign investment now stands at about $1.5 billion. From 1995 to 1996 foreign investment in Ukraine increased by 50 percent. According to the United States Department of Commerce, within the same time frame total foreign imports into Ukraine increased by 21.5 percent.

To improve access for foreign investors, an Advisory Board on Foreign Investments was created in March. This board is headed by President Leonid Kuchma and includes top Ukrainian leaders, as well as representatives of many multinational corporations. The board allows foreign companies and Ukrainian leaders to work together to create a more hospitable climate for foreign investment.

| Home Page |