NEWSBRIEFS (06/20/99)

NEWSBRIEFS

No progress on border dispute

KYIV - Ukraine and Romania have failed to define their common border in talks held in Kyiv, the Associated Press reported on June 15. "There is no concrete solution ... The discussion at the Kyiv talks is proceeding in a tense manner," the chairman of Ukraine's delegation, Yurii Kostenko, commented. Ukraine and Romania disagree on how to demarcate the Black Sea continental shelf near Zmiinyi (Serpent's) Island, where oil and gas deposits are believed to be located. The two countries signed a political treaty in 1997 pledging to solve the border dispute within two years or appeal to an international court for arbitration. (RFE/RL Newsline)

Ukraine to sell shares in oil refinery

KYIV - Russian Fuel and Energy Minister Viktor Kaliuzhnyi said in Kyiv on June 15 that Ukraine will sell a controlling stake in the LiNOS plant, a major oil refinery in Lysychansk, eastern Ukraine, the Associated Press reported. The Ukrainian government currently owns 67.41 percent of the shares in LiNOS. Ukraine does not have enough money to keep the refinery afloat, while Russia's ownership is expected to guarantee a steady oil supply to LiNOS and to provide revenues for the Ukrainian budget. (RFE/RL Newsline)

Rada postpones debate on Cabinet

KYIV - The Verkhovna Rada has put off debate, originally scheduled for June 16, on the dismissal of Prime Minister Valerii Pustovoitenko's Cabinet until next week. The debate was proposed by the Parliament's Communist deputies who collected 153 signatures to initiate a vote of no confidence in the government. The postponement decision was taken because of several urgent economic bills and because Mr. Pustovoitenko was attending a CIS economic forum in St. Petersburg, the Associated Press reported on June 15. (RFE/RL Newsline)

2 million signatories for Kuchma

KYIV - The election staff of Leonid Kuchma on June 14 submitted voter registration forms with nearly 2 million signatures supporting the president's re-election bid in the October 31 elections. Each of the 18 candidates registered by the Central Election Commission must collect at least 1 million signatures by July 13 in order to be allowed to run. (RFE/RL Newsline)

Oil, gas extraction down, coal up

KYIV - Ukraine's oil and gas production decreased by 3.8 percent and 0.7 percent respectively, compared to the same January-May period last year. The Naftohaz state company reported that Ukraine had extracted 1.5 million tons of oil and 7.3 billion cubic meters of gas in the first five months of 1999. The coal production in the same period totaled 33.5 million tons, increasing by 1.9 percent compared to last year. The increase is attributed to the fact that the government has managed to increase the level of cash payments for the mined coal. According to First Deputy Prime Minister Volodymyr Kuratchenko, 65 percent of the bill for the coal mined last month was paid in cash. (RFE/RL Newsline)

Miners launch protest march

KRASNODON - Some 200 miners from the town of Krasnodon in eastern Ukraine have started a protest march due to reach Kyiv next month, Reuters reported on June 11. Mykhailo Volynets, head of the Independent Coal Miners Trade Union, told the agency that the march is a spontaneous protest action by people who have not been paid for more than 14 months. Mr. Volynets added that the government owes Ukrainian miners some 1.37 billion hrv ($346 million U.S.) in unpaid wages and that miners are planning massive nationwide protests next month. (RFE/RL Newsline)

Kuchma condemns Soviet repression

KYIV - In a statement released on June 11, President Leonid Kuchma condemned the Soviet policy of repression against religion and the Church, Interfax reported. Mr. Kuchma recalled the liquidation of Ukraine's Autocephalous Orthodox Church in 1930 and the Uniate Church after World War II, as well as repression against Roman Catholics, Protestants, Jews and Muslims. "Although the Ukrainian state was not involved in these persecutions and bears no responsibility for them, I share the view that the Church should be exonerated morally and politically as a public institution harmed by the totalitarian regime," the statement reads. (RFE/RL Newsline)

Lazarenko nominated by Hromada Party

KYIV -The second part of the sixth session of the Hromada Party nominated the party leader, Pavlo Lazarenko, as its presidential nominee. In all, 256 delegates from all regions of Ukraine took part in the meeting held at a Kyiv enterprise. Delegates listened to a tape recording of Mr. Lazarenko's appeal about the country's political situation. Several days later, on June 14, it was reported that Mr. Lazarenko had announced that he is dropping out of the presidential race. Mr. Lazarenko accused the government of a harassment campaign against his supporters in Ukraine and urged them to support any of the contenders who oppose Kuchma. Meanwhile, San Francisco county court on June 7 postponed a hearing regarding Mr. Lazarenko's political asylum case until June 21. (Eastern Economist, RFE/RL Newsline)

Tymoshenko leaves Hromada Party

KYIV - UNIAN reported on June 1 that Yuliia Tymoshenko, leader of the Batkivschyna faction in the Verkhovna Rada, had announced her official departure from the Hromada Party. She blamed the moral qualities of its leaders for her decision. Three other founders of Hromada joined Ms. Tymoshenko, noting in a letter: "The party has lost its authority, disappointed the electorate, and, therefore, is left without a future."(Eastern Economist)

Kyiv has hottest summer day this century

KYIV - State Weather Service Senior Engineer Liudmyla Savchenko said on June 10 that the 34 degree C (93.2 F) temperature registered in Kyiv on June 9 is one degree lower than the record recorded in 1885. According to state health officials, ultraviolet radiation will be greatest on June 22-23. Health officials have recommended minimizing the amount of time spent in the sun. (Eastern Economist)

Tarasyuk leads trade delegation

VILNIUS - Foreign Affairs Minister Borys Tarasyuk, accompanied by a trade delegation, was in Lithuania on June 14. He met with President Valdas Adamkus to discuss wide-ranging bilateral and international issues, with the focus on economic issues. In response to Lithuanian concerns that Ukraine's across-the-board import tariffs violate a free trade agreement, Mr. Tarasyuk said: "These are not import tariffs, just an extra, small levy on imported goods," according to ELTA. Mr. Tarasyuk also was to attend the Council of Baltic Sea States meeting, as Ukraine holds observer status in the organization. (RFE/RL Newsline)

Foreign minister looks westward

KYIV - Ukraine's Foreign Affairs Minister Borys Tarasyuk held a meeting with parliamentary deputies of the North-Atlantic Assembly on June 10, ITAR-TASS reported. Mr. Tarasyuk said the development of a "parliamentary dialogue with NATO has become an important lever for Ukraine to gain a foothold on the world arena." The minister stressed that "European and European-Atlantic integration" remains Ukraine's top priority. Referring to Kyiv's bilateral ties with neighboring states, he emphasized that they are aimed at establishing a "safe zone of peace and stability" around Ukraine. (RFE/RL Newsline)

NATO group visits Kyiv colleagues

KYIV - The NATO Defense College visited Kyiv and Ukrainian Ministry of Defense colleagues on June 2-4. The delegation, headed by Lt. Gen. Hartmut Olboeter, consisted of 125 persons from 22 countries. The main topics of discussion at the meetings were prospects for Ukraine-NATO cooperation in various spheres. The first day's program included a roundtable discussion, lead by Canadian Ambassador Derek Fraser, concerning the current realities facing Ukraine. The second day's program included meetings with the Minister of Foreign Affairs Borys Tarasyuk and his predecessor Hennadii Udovenko, as well as representatives of the Ministry of Defense of Ukraine. (Eastern Economist)

Inflation index up by 8.5 percent

KYIV - The inflation index over the first five months of 1999 grew 8.5 percent, or 5 percent higher than over the same period last year. Over the period, sugar prices increased 24.8 percent, with potato, flour, cereal, vegetable prices increasing approximately 10 percent. Egg prices dropped 16.4 percent, as did prices for butter and milk. Although gasoline prices dropped 1.7 percent, utilities rates increased by 6 percent. The consumer price index for May rose half a percentage point, pushing the overall index up to 4.5 percent for the first five months of 1999. (Eastern Economist)

Ukraine seeks to reschedule debt payment

KYIV - The Ukrainian government failed to pay $163 million to the Dutch-based ING-Barings last week, but still hopes to persuade the lender to reschedule the payment, the Associated Press reported. Ukraine has entered negotiations with the bank, proposing to pay off only 20 percent of the loan and convert the rest into state bonds. According to the agency, ING Barings is reluctant to accept the offer. Commenting on Ukraine's huge foreign debt, Finance Minister Ihor Mitiukov said there is a "large difference between the obligations and means available to cover them." (RFE/RL Newsline)

World Bank calls for privatization

KYIV - Gregory Jedrzejczak, World Bank representative to Ukraine, has urged Ukraine to accelerate privatization and use the proceeds to service its foreign debt. Ukraine has to repay $1.2 billion this year and an estimated $2.3 billion next year. World Bank Vice-President Johannes Linn said in Kyiv on June 9 that Ukraine may receive $400 million in loans by next summer if the government moves to implement the bank's requirements. According to Reuters, Mr. Linn commented that "the No. 1 issue is to ensure that the privatization process is very transparent and clearly competitive." Meanwhile, ITAR-TASS quoted Ukrainian officials as saying that the World Bank will "soon" extend to Ukraine two tranches worth $100 million each. The agency also reported that the International Monetary Fund will release by late June an unspecified tranche under its loan program for Ukraine. (RFE/RL Newsline)

Ukraine, Bulgaria to seek compensation

KYIV - President Leonid Kuchma and his Bulgarian counterpart, Petar Stoyanov, said after talks in Kyiv on June 9 that their countries will seek compensation for economic losses due to NATO's bombing of Yugoslavia. Mr. Kuchma said the Balkan crisis was the main topic of discussion, adding that the two countries, along with Romania, will coordinate their efforts in the post-war restoration of Yugoslavia and the Danube waterway. Both presidents also stressed the need to boost economic cooperation. Bilateral trade turnover totaled $325 million in 1998. (RFE/RL Newsline)

Ukrainian troops may join Kosovo force

KYIV - "Ukraine intends to take part in international peacekeeping forces in Kosovo," announced Defense Minister Oleksander Kuzmuk on June 8 in Oslo where he was on an official visit. Gen. Kuzmuk said 1,300 Ukrainian peacekeepers will be ready for departure by July 1. The contingent is made up of a field hospital, a helicopter detachment, a railroad battalion, a motorized company and, possibly, a company from a Ukrainian/Polish peacekeeping battalion. Ukraine has sent an official letter presenting this initiative to Brussels, but has not yet received a reply. If the Ukrainian proposal is accepted and if there is a request to Kyiv from the United Nations Security Council, Ukraine will consent to alter the size of the contingent. (Eastern Economist)

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