NEWSBRIEFS (08/10/97)

NEWSBRIEFS

Floods spread to southwestern Ukraine

KYIV - The rains that forced the evacuation of dozens of villages in the western Ukrainian region around Lviv, where more than 700 people fled the rising waters, have hit Transcarpathia and southwestern Ukraine. On August 4, Tatiana Pomazanova, a spokeswoman for Ukraine's Emergencies Ministry told journalists that 12 villages have been flooded and six bridges swept away in floods caused by heavy rains in regions near the Romanian border. Ms. Pomazanova also said a 9-year-old girl drowned near Ivano-Frankivsk. Torrential rains also flushed 32 families from the town of Kiliya, Odesa Oblast. On August 5, the Emergencies Ministry told the UNIAN news agency that a delegation from the oblast's Civil Defense Department is carrying out relief efforts. (RFE/RL Newsline, Eastern Economist)

NBU lowers interest rate

KYIV - The UT-1 television network reported on August 5 that the National Bank of Ukraine has lowered its interest rate from 18 percent to 16 percent. The rate is now lower than at any time since Ukraine's independence was proclaimed in August 1991. (Eastern Economist)

World Bank suspends electricity loan

WASHINGTON - The Ukrainian government's failure to abide by a promise to raise electricity rates has prompted the World Bank to suspend disbursements of a $317 million loan to the country. On August 1, RFE/RL's Washington correspondent quoted a bank official as saying the government's unwillingness to raise rates "has jeopardized the financial viability of the thermal generation companies" which depend on the loan. Approved in October 1996, it was to be used over a three-year period to build up fuel stocks and spare parts, and to install metering and other modern equipment to get Ukraine's electric utility industry up to standard. To date, Ukraine has received $106.5 million U.S. The World Bank official said the country's power companies will continue to deteriorate if wholesale and retail prices are not raised - over the past year, one-sixth of the amounts owed for electricity bills have been paid by consumers. The World Bank representative added that his institution will continue to support power industry reforms with technical assistance and other non-lending services, but will only reopen the loan when rates are adjusted. (RFE/RL Newsline, Eastern Economist)

Crimeans appeal to Mrs. Kuchma

SEVASTOPOL - A number of civic groups from Sevastopol banded together to form the so-called Bastion Bloc have released an open letter calling on Ukrainian President Leonid Kuchma's wife, Liudmyla, to use her influence to block the Sea Breeze 97 exercise to be held in Crimea, Interfax reported on August 4. The exercise is scheduled to be held off the peninsula's coast later this month as part of NATO's Partnership for Peace program. It would involve Ukrainian, U.S. and other countries' naval ships. The Bastion Bloc also has called on Ms. Kuchma "to take the rapprochement of Ukraine, Russia and Belarus under her patronage." The League of Crimean Women has sent a similar letter to Mrs. Kuchma. (Eastern Economist)

Ukrainian and Uzbek presidents meet

KYIV - Ukraine's President Leonid Kuchma met Uzbekistan's President Islam Karimov on August 5, during the latter's vacation in Crimea. A spokesman for the Ukrainian president was quoted as saying that a "wide spectrum of issues in relations between the two countries was discussed" during the meeting and that both presidents expressed satisfaction with the state of bilateral relations. (RFE/RL Newsline)

Illegal immigrant figures rise

LVIV - According to a report in the Lviv-based daily Za Vilnu Ukrainu, there are about a million individuals residing in Ukraine illegally. The report also mentioned that in the past six months, 5,300 people were turned away at the border when they sought to enter the country illegally, a 62.4 percent increase over previous periods. The item contended that over the past two years police closed down 181 illegal immigration channels and arrested 496 smugglers, contrabandists and other violators of Ukraine's borders. (Respublika)

Reform and Order Party founded

LVIV - On August 1, the Reform and Order Party held its founding convention here at the Transcarpathian Military District's Cultural Center, attended by 183 delegates. The meetings were attended by former Minister of the Economy Viktor Pynzenyk. The party's platform proposes minimizing the role of government in the economy, encouraging foreign investment, and taking steps to move the shadow economy into legal sectors. A national convention is planned for September. (Respublika)

Latest popularity poll

KYIV - According to a poll conducted last week by the weekly newspaper Kievskie Novosti, the 10 most popular political figures in the country are: 1. Leonid Kuchma - president of Ukraine; 2. Oleksander Moroz - chairman, Verkhovna Rada; 3. (tied) Volodymyr Horbulin - secretary, National Security and Defense Council; 3. (tied) Serhii Tyhypko - vice prime minister; 5. Vasyl Durdynets - first vice prime minister; 6. Valerii Pustovoitenko - prime minister; 7. Yevhen Marchuk - national deputy; 8. Leonid Kravchuk - national deputy, former president; 9. Petro Symonenko - national deputy, Communist Party leader; 10. Yurii Kravchenko - minister of internal affairs. (Respublika)

Estonia, Latvia reject Russia's offer

TALLINN - Estonia and Latvia on July 16 firmly declined Russia's offer to provide the Baltic states with security guarantees, BNS and ETA reported. The offer was made the previous day in Moscow by Foreign Ministry spokesman Gennadii Tarasov, who commented that Russia has a "constructive alternative" to the Baltics' possible entry into NATO; namely, security guarantees. Estonian Premier Mart Siimann responded by saying his country "sees international security guarantees in unification with European structures, including NATO." He added that the best guarantee Russia could offer would be its "transformation into a democratic country with a well-developed economy that we could trust." Latvian President Guntis Ulmanis commented that "under no conditions, even on the level of a discussion, will we speak about Russian guarantees." (RFE/RL Newsline)

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