NEWSBRIEFS (07/06/97)

NEWSBRIEFS

World Bank presses Ukraine on IMF deal

KYIV - On his first working day, newly appointed World Bank Director for Belarus and Ukraine Paul Sigelbaum warned President Leonid Kuchma on July 1 that the World Bank would not be able to cooperate with Ukraine in implementing structural reform of several sectors of the economy if the country failed to sign an agreement with the International Monetary Fund. According to presidential advisor Valerii Lytvytskiy, Mr. Kuchma replied that Ukraine had not yet violated any of its agreements with that institution and had "even followed the conditions on the size of the budget deficit." Noting that an IMF delegation would arrive in Ukraine shortly, Mr. Kuchma expressed optimism about the prospects for continuing collaboration with the IMF. Mr. Lytvytskiy said the World Bank may disburse some $1 billion for reform of the energy and finance sectors, agriculture and the government apparatus. Describing administrative reform as "the most urgent problem," Mr. Kuchma said a special commission on this issue would be set up shortly under former President Leonid Kravchuk. (Eastern Economist)

Call for "Tavrida Autonomous Republic"

SYMFEROPOL - The Russian National Congress of Crimea ended on June 29 with 77 representatives of pro-Moscow organizations condemning Russian President Boris Yeltsin for "betraying the interests of Russians in Crimea and Russian interests in the Black Sea region." The Ukrainian-Russian Friendship and Cooperation Treaty, which Mr. Yeltsin and Ukrainian President Leonid Kuchma signed in May, was declared a major concession to "Western, pro-NATO forces." Participants in the congress also approved a resolution declaring that ethnic Russians have become a minority in Ukraine and that steps should be taken to prevent assimilation. It was proposed that legislation be advanced to protect ethnic Russians in Crimea and that the peninsula be transformed into the Russian Autonomous Republic of Tavrida. Tavrida was a 19th century imperial Russian name for Crimea. Pro-Moscow deputies in the Crimean Parliament were called on to propose the Tavrida question for a Crimea-wide referendum. The congress also resolved to set up an All-Ukrainian Slavic Party of Rus Reunification, with the aim of bolstering links between pro-Moscow groups in all of the Commonwealth of Independent States. (Eastern Economist)

German minister urges Ukraine to reform

FRANKFURT - German Economy Minister Guenter Rexrodt on July 1 urged Ukraine to push ahead with its economic reforms if it hopes to attract badly needed foreign investment. "Every week, every month is becoming more urgent, and a system of reforms is important," Mr. Rexrodt told a conference on investment in Ukraine taking place here. "There are legal inconsistencies, red tape and a disproportionate demand for adminstrative fees and royalties," Mr. Rexrodt added, insisting that Ukraine meet reform measures demanded by the International Monetary Fund, and move quickly on closing down the Chronobyl nuclear power station, site of the world's worst nuclear accident in 1986. (Reuters)

De Beers eyeing Azov Sea for diamonds

KYIV - The South African company De Beers is interested in developing diamond deposits on the Azov Sea coast, Holos Ukrayiny reported on June 24. Possibilities for participation in development of Azov Sea kimberlite deposits have been discussed by representatives of De Beers and the State Geology Committee. According to official data, the length of the deposit is 250 km. (Eastern Economist)

Havel visits Chornobyl

KYIV - Czech President Vaclav Havel on July 1 became the first president from a country other than Ukraine to visit the Chornobyl nuclear power plant, Ukrainian and Czech TV reported. He met with directors of the station and walked the streets of the abandoned city of Prypiat. Mr. Havel told reporters afterward that the site is a testimony to the lack of mankind's humility in the face of nature. At a ceremony where he received an honorary doctorate from Kyiv State University, Mr. Havel said he considers Ukraine an integral part of Europe on account of both its history and its values. (RFE/RL Newsline)

Cabinet introduces new commodity duty

KYIV - New import duties have been introduced on commodities, affecting exotic fruits and spices in the main, with rates varying between 5 percent and 30 percent of customs value. Knitwear and woven carpets will be hardest hit, with both incurring a 30 percent duty. (InfoBank, Eastern Economist)

Mine closings fall behind schedule

KYIV - Mykola Ivanov, an official at the state company overseeing the closure of money-losing mines in Ukraine, told Interfax on July 1 that Ukraine cannot afford to close 40 unprofitable coal mines this year, as was planned. He said Ukraine has received only a fraction of the money promised for the project. According to Mr. Ivanov, shutting the first 28 pits would cost 960 million hrv ($525 million). He said even if the company receives the 238 million hrv due from the 1997 state budget, it will be able to shut only five or six mines. The World Bank has given Ukraine the first half of a $300 million loan to underwrite the restructuring of the coal industry. World Bank officials said, after visting Donetsk and other coal mining areas, that the closure program would go ahead but that its pace may be slowed by lack of funding. (RFE/RL Newsline)

Privatbank to get international rating

KYIV - Privatbank has become the first Ukrainian bank to receive an international rating from the Thomson BankWatch agency, Vseukrainskiye Viedomosti reported on June 28. "In five years of operation, Privatbank has become the most significant private bank of the new generation," said an agency report. Privatbank, a closed joint-stock company, is one of Ukraine's five biggest banks. According to the Thomson report, as of January 1, Privatbank's statutory fund was 30 million hrv, its currency balance 1.2 billion hrv and its own funds 107.9 million hrv. (Eastern Economist)

Gazprom chief says Ukraine still steals

MOSCOW - The director of the Russian energy conglomerate Gazprom, Rem Vyakhirev, has stood behind his earlier accusation that Ukraine is illegally diverting Russian gas from pipelines that run across the former Soviet Union to Central Europe. But he said appealing to international courts of justice would be problematic because there are no specific legal mechanisms for such a case. He added: "Ukraine is still stealing gas." (Eastern Economist)

| Home Page |