NEWSBRIEFS (12/07/97)

NEWSBRIEFS

IMF approves two tranches of credit

KYIV - The IMF board of directors decided on November 27 to disburse two previously withheld tranches of Ukraine's stand-by credit worth about $103 million (U.S.). The IMF board concluded that by October Ukraine had more or less met the macroeconomic indicators required under its Memorandum on Conditions of Cooperation with the IMF and had speeded up the process of structural reform, especially in the area of privatization. The IMF's Kyiv representative noted that, in the first 10 months of 1997, inflation had been lower than expected and that the decline in production seemed to have stopped, though this tendency remained weak. The IMF also praised the Ukrainian government's efforts to cushion the effects of international stock market instability on the Ukrainian currency market. However, Presidential Adviser Valerii Lytvytskyi noted that the board had expressed concern about the absence of real reforms in Ukraine's budgetary sector which was reducing the effectiveness of state currency policies. "The IMF hopes for improvement and therefore it will continue providing Ukraine with tranches," said Mr. Lytvytskyi. Monthly increases in the size of the budget deficit caused friction between the IMF and Ukraine in August and September. As a result, Ukraine has so far received only one stand-by tranche worth $49 million (U.S.) in 1997. (Eastern Economist)

Ukraine won't sign land-mine convention

KYIV - Ukrainian Foreign Affairs Ministry spokesman Viktor Nahaichuk said on December 2 that Kyiv will not sign the land-mine convention in Ottawa, Interfax reported. He added, however, that Ukraine's decision was motivated by a lack of money with which to comply rather than by opposition to the ban on land mines. Mr. Nahaichuk noted that Ukraine might accede to the agreement sometime in the future. (RFE/RL Newsline)

Ukrainian peacekeepers to Transdniester?

CHISINAU - A Ukrainian peacekeeping unit will soon be stationed in the Transdniester, RFE/RL's Chisinau bureau reported on December 2, citing the Russian-language pro-government daily Nezavisimaya Moldova. The daily said that Russia, which previously opposed the stationing of the Ukrainian troops, has changed its position following the recent visit to Chisinau and Tiraspol of Russian Minister for CIS Affairs Anatolii Adamishin. The newspaper also commented that separatist leader Igor Smirnov hopes the presence of the Ukrainian peacekeepers will result in a competition for influence in the Transdniester between Moscow and Kyiv. Moldovan presidential adviser Anatol Taranu, who heads the Chisinau team in parleys with Tiraspol, said Moldova is ready to accept the Ukrainian contingent in order to "once more demonstrate its good will and readiness to accept a compromise." (RFE/RL Newsline)

Summit held at Kuchma residence

KYIV - The presidents of Ukraine, Lithuania and Latvia held an informal summit at President Leonid Kuchma's residence in the Zalissia forest preserve outside of the Ukrainian capital. The three heads of state discussed economic cooperation in the Baltic-Black Sea region, as well as matters related to European security and integration. (Respublika)

WTO thinking of admitting Ukraine

GENEVA - Ukraine is making steady progress on market access for foreign goods in talks with other countries regarding admission to the World Trade Organization. First Deputy Minister for Foreign Economic Relations and Trade Andrii Honcharuk confirmed the news after presenting new documents on Ukraine's trade policies and tax legislation as part of its bid for membership. In order to gain membership, an applicant country must convince current members that its markets will be accessible for goods and services and negotiate the text of a protocol covering trade policy. Ukraine's bid for membership began in November of 1993. (Eastern Economist)

900 cases of abuse are revealed

KYIV - Deputy Prosecutor General Olha Kolinko reported that her agency had disclosed approximately 900 cases of abuse in the budget sphere. UkrGaz spent 360,000 hrv of budget money on tie clips and golden emblems. The Cabinet spent 2.15 million hrv on buying apartments for high officials, and 5 million hrv on repairing former Prime Minister Pavlo Lazarenko's dacha. Ms. Kolinko also reported that "The whole downtown of Dnipropetrovsk was privatized illegally." (Eastern Economist)

Insurance not mandatory for visas

KYIV - In order to receive entry visas for Ukraine, U.S. citizens will not first have to have health insurance. Agreement on this point was reached last week at talks in Washington between the Ukrainian Foreign Affairs Ministry and the U.S. State Department's consular departments. (Eastern Economist)

Asian market turmoil to affect Ukraine

KYIV - The recent closures of the Yamaichi Securities Brokerage house and Tokyo City Bank, and the continuing crisis on world stock markets, especially in Asia, will have an adverse affect on the Ukrainian economy. Exports to the once booming, but now struggling, economies of Southeast Asia make up 20 percent of all exports from Ukraine. South Korea, Thailand and Indonesia are all discussing credits with the IMF. Japan's Central Bank has promised to help reimburse depositors who lost money in the closures of Yamaichi and Tokyo City Bank. The placement of Ukrainian Eurobonds and Samurai bonds will be put off for at least a few months. (Eastern Economist)

U.S. ambassador to Russia lists priorities

MOSCOW - James Collins, the new U.S. ambassador to Russia, announced in November at his first press conference in Moscow that "security issues and preventing proliferation of weapons of mass destruction" are among his top priorities, Agence France Press and Russian news agencies reported. Ambassador Collins also called on Russia to ratify the START II arms control treaty. He said President Bill Clinton plans to visit Russia during the first half of 1998, although no date has been set. He added that President Clinton's visit would be "most productive" following ratification of START II, so that he and Russian President Boris Yeltsin could discuss further arms control agreements. There is staunch opposition to START II in the Duma. Mr. Collins also said the U.S. will closely watch how Russian authorities implement the new religion law, which imposes restrictions on foreign missionaries and certain religious groups. (RFE/RL Newsline)

Ukraine's mint to open in early 1998

KYIV - Ukraine, having issued its first coins at a newly built mint in Kyiv, has become only the second country on the territory of the former Soviet Union to have its own mint. It was constructed by the Austrian mint. Deputy Director Mykola Obelets noted it will operate at full capacity by the end of 1998. (Eastern Economist)

Motor-Sich to supply Iranian companies

ZAPORIZHZHIA - The Zaporizhzhia-based Motor-Sich plant has signed a $140 million (U.S.) contract with Iranian companies to supply equipment for the production of aircraft engines and training of local personnel. The contract is part of a larger project to build a plant to produce AN-140 planes using Ukrainian know-how. Motor-Sich deputy director Yaroslav Sukhin announced the news, adding that the AN-140 will be built in Ukraine, Iran and Russia. The tender was won jointly by the Motor-Sich plant, the Kharkiv Aviation plant and the Kyiv-based Antonov Aviation design bureau against stiff competition. The total value of the project is approximately $4 billion (U.S.). The plant's construction is set for 1999. (Eastern Economist)

Obolon beer to be sold in cans

KYIV - Kyiv's Obolon brewery is to start selling beer in cans as well as bottles beginning on November 27. The brewery will use a German-built beer-canning production line. The quality of canned beer will be identical to that of bottled beer, Obolon's technical control department head Vasyl Mikusevych promised. The canned beer will have a shelf life of 90 days. (Eastern Economist)

Ukraine continues to downsize military

KYIV - Defense Minister Oleksander Kuzmuk told a Kyiv news conference on December 1 that he will continue downsizing Ukraine's armed forces, cutting another 36,000 jobs by 2005. He said his ability to downsize has been limited by inadequate government support for the army and noted that he has asked the Verkhovna Rada to double its allocations to the military in 1998. In other comments, Minister Kuzmuk acknowledged he has released from duty three Ukrainian officers accused of smuggling while in Bosnia, but he repeated Kyiv's insistence that the seven Ukrainian soldiers arrested in Mostar had not violated any law. He suggested those soldiers had been victims of a provocation of some kind. (RFE/RL Newsline)

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