NEWSBRIEFS (06/14/98)

NEWSBRIEFS

Ukraine has 150,000 millionaires

KYIV - The chief of the State Tax Administration, Mykola Azarov, has said only seven persons declared incomes exceeding 1 million hryvni ($500,000 U.S.) in Ukraine last year, Ukrainian Television reported. According to Mr. Azarov, the number of millionaires who made false declarations totals some 150,000. He also estimated that some 10 billion to 12 billion hrv are circulating in Ukraine's shadow economy. Mr. Azarov said the tax authorities will be able to collect some 3.5 billion hrv from that sector by the end of this year if the Verkhovna Rada adopts a package of new tax legislation. (RFE/RL Newsline)

EU lukewarm toward Ukraine's bid

LUXEMBOURG - At the first session of the Ukraine-European Union Cooperation Council in Luxembourg on June 9, Ukraine's Prime Minister Valerii Pustovoitenko requested that Ukraine be granted associate membership in order to pave the way for full-fledged membership in the future, Ukrainian Television reported. According to Reuters, the EU reacted unenthusiastically to Ukraine's association bid, saying it is "premature" to look further than the current accord on Ukraine-EU cooperation and partnership, which took effect on March 1. "I'm sure that in the medium term Ukraine will arrive at that point which in our view, at the present time, it has not arrived at yet," Reuters quoted EU Commissioner for Foreign Relations Hans van den Broek as saying. (RFE/RL Newsline)

Berezovskii denies plans to move CIS HQ

MOSCOW - CIS Executive Secretary Boris Berezovskii told journalists on June 4 allegations that he plans to transfer the headquarters of the Commonwealth of Independent States from Miensk to Moscow are untrue, Interfax reported. Belarusian envoy to the CIS Sergei Posokhov had claimed on June 3 that Mr. Berezovskii and his staff had made preparations for such a move. Mr. Posokhov had expressed Belarus's strong opposition to such an intention. He added that Ukraine, Uzbekistan, Armenia and Tajikistan had similarly expressed objections to that intention. (RFE/RL Newsline)

Ukrainian miners continue protest

KYIV - Miners continue to picket the buildings of the Presidential Administration, the Verkhovna Rada, and the Cabinet of Ministers in Kyiv, Ukrainian Television reported on June 4. Trade unionists have announced the pickets will remain until the authorities meet the coal miners' demands that all wage arrears be paid. Miners picketing the oblast administration building in Luhansk blocked the traffic in the city center for one hour. The Coal Miners Independent Trade Union said on June 4 that 45 mines are on strike, while the Ministry of Coal Mining put the figure at 30. Meanwhile, the Parliament has passed a resolution ordering the government to increase subsidies to the coal industry by 400 million hrv (about $200 million U.S.). According to a government official quoted by ITAR-TASS, the government is now drafting a resolution on reducing coal imports from Russia and Poland. (RFE/RL Newsline)

Kyiv daily loses libel case against minister

KYIV - The opposition daily Kievskiye Viedomosti has lost a libel case filed by Internal Affairs Minister Yurii Kravchenko, Ukrainian Television reported on June 4. The court ruled that the newspaper has to pay 5 million hrv ($2.5 million U.S.) in damages to the minister for falsely accusing him of corruption. In addition, two journalists are to pay the minister 27,000 hrv in damages for writing "incriminating articles." A Kievskiye Viedomosti representative told Ukrainian Television: "This is simply another attempt to stifle the independent press," adding that the newspaper will appeal the verdict in the Supreme Court. (RFE/RL Newsline)

Brzezinski: Ukraine NATO-ready by 2010

KYIV - Ukraine will meet all necessary criteria for NATO-membership by 2010, American foreign policy expert Zbigniew Brzezinski said on June 1. He added that Foreign Affairs Minister Borys Tarasiuk has a "more optimistic" timeline for eligibility. Dr. Brzezinski mentioned four criteria for membership: a stable, democratic government; an effective free-market economy; civilian control of the military; and limited, manageable ethnic and territorial problems. Without being specific, Dr. Brzezinski said, "Today Ukraine meets two criteria, and Russia none." Citing its democratic elections and tolerance in language and ethnic issues, he praised Ukrainian successes in the political sphere. However, he pointed to the divided Verkhovna Rada as an obstacle to a fully functioning market economy. During his meeting with President Leonid Kuchma, he said election of a centrist Parliament chairman would help increase international financial assistance and investment in Ukraine. (Eastern Economist)

Nazi victims receive compensation

KYIV - Ukrainian victims of Nazi persecution have received a total of 333 million DM in compensation payments, the chairman of the National Bank of Ukraine, Viktor Yuschenko, announced on May 20. He said that, as of May 1, a total of 616,000 Ukrainians had applied for compensation. The size of payments depends on the category of victim and is an average 600 DM. Thus far, 370 million DM in compensation has already been allocated from German funds. Mr. Yuschenko said the outstanding funds would be disbursed by the end of the first half of 1998. (Eastern Economist)

Passengers want their money back

KYIV - The Ukrainian cruiser Taras Shevchenko, owned by the Odesa-based Black Sea Shipping Co., is returning home with more than 500 passengers aboard after a canceled Mediterranean cruise, Ukrainian Television reported on June 8. The passengers had strongly protested the previous day after realizing that the ship had changed its route and was returning from Piraeus to the Black Sea. Greek authorities had tried to impound the vessel because of the shipping company's debts, which total $125 million. The passengers, who paid $1,500 to $7,000 for the trip, are to file suit against the company to obtain "moral and material compensation" amounting to $2 million. (RFE/RL Newsline)

32,000 fictitious firms in Ukraine

KYIV - Approximately 32,000 fictitious firms are operating in Ukraine - 1,500 of them in Kyiv. Their total turnover equals 200 million to 400 million hrv and their activities mainly involve transfer of funds abroad, according to the chairman of the State Tax Administration, Mykola Azarov. (Eastern Economist)

Bumper sunflower crop is predicted

KYIV - The 1998 sunflower harvest is expected to be 2.5 million to 3 million tons. Last year's harvest was 2.2 million tons. According to the State Statistics Committee, 2.0 million to 2.1 million hectares were planted with sunflowers this year - 200,000 hectares more than in 1997. Experts predict that, given favorable weather conditions and yield of at least 13 centners per hectare, growers should gather the biggest sunflower harvest of recent years. Ukrainian Grain Association President Mykola Kompanets said that domestic processing enterprises could process up to 2.5 million tons of sunflower seeds. The domestic market requires around 1 million tons of seeds for production of 450,000 to 500,000 tons of sunflower oil. The remainder can be exported. (Eastern Economist)

U.S. plane to conduct fly-overs in Ukraine

KYIV - A specially equipped OS 135B plane from the U.S. On-Site Inspection Agency will conduct a flight inspecting Ukrainian military bases on June 16. According to the agency, the flight is in accord with the implementation of the Open Skies Treaty signed by 27 countries in Helsinki in 1992. Deputy Chairman of the Armed Forces Verification Center Oleksander Sherstiuk said "the verification flights will inspect the country's military activities from the air." After arrival of the American plane, representatives of the Ukrainian military will be informed about the mission's flight plan and the specific objects chosen for U.S.-inspection. He said that the flight will be conducted jointly with Ukrainian military personnel. Mr. Sherstiuk said representatives of the Ukrainian Verification Center have already conducted two similar flights over U.S. territory and are preparing for a third one. He also expressed regret over the fact that Ukraine has not yet ratified the Open Skies Treaty. (Eastern Economist)

Kuchma meets Vatican secretary of state

KYIV - The Ukrainian president on June 3 met with Cardinal Angelo Sodano, Vatican secretary of state, who is currently on an official visit to Ukraine, Ukrainian Television reported. Both officials noted "the deepening of relations between the two states." Ukraine has 4.5 million Uniates (Eastern rite Catholics loyal to Rome) and 500,000 Roman Catholics. One of Cardinal Sodano's goals was to discuss a possible visit by Pope John Paul II to Ukraine. The cardinal told Ukrainian Television that the pope's visit is "a question of the future. ... I am sure that the pope will come because he wants to and he continually mentions Ukraine in his prayers." (RFE/RL Newsline)

BMW introduces new sedan

KYIV - ABT Bavaria, official importer of BMW and Land Rover in Ukraine, officially introduced its new BMW model on June 4. Valerii Ilchenko, general director of ABT Bavaria, presented the new model at a press conference, which was followed by a reception sponsored by Smirnoff, BMW's partner in the latest James Bond movie, "Tomorrow Never Dies." The new sedan had its debut this March in Geneva. This model comes with a "bad road package," developed by BMW for countries in which road conditions are below Western standards. ABT Bavaria is currently taking orders for its new model. (Eastern Economist)