NEWSBRIEFS (12/26/99)

NEWSBRIEFS

Rukh faction holds 'unifying' congress

KYIV - Some 740 delegates on December 18 took part in the "constituent and unifying congress" of Rukh, which was organized by the Rukh faction headed by Yurii Kostenko, Interfax reported. However, the Rukh faction headed by Hennadii Udovenko did not participate in the congress. Rukh's split into two groups this spring was followed by bitter enmity and court litigation over which group has the right to inherit the movement's historical name - Narodnyi Rukh Ukrainy, or the National Movement of Ukraine. From a legal viewpoint, Mr. Udovenko remains head of both Rukh and its parliamentary caucus. (RFE/RL Newsline)

Leftists to boycott Rada session

KYIV - Communist Party leader Petro Symonenko said on December 16 that his caucus will boycott the session unless the Verkhovna Rada includes on its agenda a discussion of the presidential decree abolishing collective farms, Interfax reported. The Progressive Socialist Party caucus walked out in protest after deputies failed to approve including that issue on the December 17 agenda. Leftist caucuses oppose the abolition of collective farms in Ukraine, while some 100 deputies have asked the Constitutional Court to declare the decree unconstitutional. (RFE/RL Newsline)

Kuchma comments on Russian elections

KYIV - President Leonid Kuchma on December 20 praised the strong showing of centrist parties in the Russian parliamentary elections, Mr. Kuchma's spokesman Oleksander Martynenko told Interfax. According to the Ukrainian president, such results mean the success of forces oriented toward introducing further democratic and market transformations. Mr. Kuchma noted that a majority of Russians demonstrated their belief that the political and economic processes in their country are irrevocable. Meanwhile, Verkhovna Rada Chairman Oleksander Tkachenko said the electoral victory of Russian Communists will positively influence the development of Ukrainian-Russian relations. (RFE/RL Newsline)

IMF to Kyiv: money after reforms

KYIV - The International Monetary Fund's Kyiv mission chief, Mohammed Shadman-Valavi, said on December 16 that the IMF's new loans will depend on the country taking concrete steps toward implementing reforms, UNIAN reported. The IMF's permanent representative in Ukraine, David Orsmond, said the fund expects Kyiv to introduce a program of reforms that are "large-scale and quite ambitious," according to Interfax. So far, Ukraine has received $965 million from the IMF's $2.6 billion loan package. (RFE/RL Newsline)

Kuchma cuts state bureaucracy

KYIV - President Leonid Kuchma has signed a decree reducing the number of ministries and other central executive bodies from 89 to 35, Interfax reported, quoting presidential administration chief Volodymyr Lytvyn. The number of ministries has been reduced from 18 to 15 and the number of Cabinet members from 24 to 20. Administrative reform was one of the International Monetary Fund's key demands for resuming its loan program for Ukraine. (RFE/RL Newsline)

Russia halts energy supplies to Ukraine

MOSCOW - Russia has suspended its supplies of oil and electricity to Ukraine after accusing the country of stealing Russian gas from pipelines crossing its territory, Interfax reported on December 10. The Russian government approved disconnecting supplies when Kyiv reportedly failed to respond to Russian Prime Minister Vladimir Putin's letter to Ukrainian President Leonid Kuchma, in which the former accused Ukraine of siphoning off Russian gas bound for Europe. Russian Energy Minister Viktor Kaliuzhnyi said on December 10 that Ukraine is stealing some 150 million to 200 million cubic meters of Russian gas a day. He added that the oil and electricity supplies can be resumed only if Ukraine takes a "constructive stand" on repaying its debt to Russia for gas supplies, according to ITAR-TASS. (RFE/RL Newsline)

Ukraine shrugs off energy threats ...

KYIV - First Vice Prime Minister Anatolii Kinakh on December 13 said neither the Russian Federation nor Gazprom has taken any measures against Ukraine in connection with the accusations that Ukraine siphons off Russian gas from transit pipelines, Interfax reported. Responding to the Russian energy minister's statement that Russia halted oil and electricity supplies to Ukraine, Mr. Kinakh said Ukraine has not imported electricity from Russia in 1999 so "there is nothing to halt." He added that Russian oil supplies are handled by commercial firms, so "there is also nothing to halt" for the state. Mr. Kinakh was to visit Moscow this week to discuss the restructuring of Ukraine's gas debt. (RFE/RL Newsline)

... denies stealing Russian gas

KYIV - An unidentified Ukrainian government official has "resolutely denied" allegations that Ukraine has stolen Russian gas, Eastern Economist reported on December 13. Those allegations were also rejected by Naftohaz Ukrainy board member Bohdan Krupskyi, who said on December 10 that his company signed an agreement with Gazprom allowing Ukraine larger supplies of Russian gas in 1999 than had been agreed to earlier. (RFE/RL Newsline)

EU adopts strategy for Ukraine

HELSINKI - The European Union's Helsinki summit on December 11 adopted a strategy for developing relations with Ukraine over the next four years, but made no mention of offering EU membership to that country, Reuters reported. The document merely acknowledged Ukraine's European aspirations, welcomed its "pro-European choice," and outlined the basis for cooperation between Kyiv and the EU. "This is a step forward in our relations," Finnish Prime Minster Paavo Lipponen commented. (RFE/RL Newsline)

Foreigners must register with the police

KYIV - The National Bank of Ukraine sent a letter to commercial banks, containing the Internal Affairs Ministry's regulations regarding the status of private individuals in Ukraine, whereby foreigners can prove their identity by passports which have been registered by the police upon their arrival in Ukraine. In line with Internal Affairs Ministry procedures, foreigners without diplomatic status must register their passports with the police within three days of their arrival and for the term of validity of their visas. Foreigners studying in Ukraine must register their passports for the term of their studies, regardless of the terms of their visas. Foreigners arriving in Ukraine to work or to conduct business must have their passports registered for the term of their work permits or permits to conduct business, or for any other terms specified in the applications by Ukrainian resident private individuals and legal entities. Foreigners residing permanently in Ukraine can prove their identity by their national passports and residence cards issued by the police. (Eastern Economist)

International support for reform program

KYIV - Ukrainian presidential spokesman Oleksander Martynenko said President Leonid Kuchma's reform program received support from world political and financial leaders during his recent visits to Moscow, Brussels, Paris and Washington, Interfax reported on December 9. Mr. Martynenko added that "it is possible today to speak about the reality of Ukraine's integration into the European community and about the fact that Russia and the U.S. are strategic partners of our country." According to the presidential spokesman, Ukraine may expect a $370 million loan from the World Bank in 2000. The loan was agreed to at a meeting between President Kuchma and World Bank President James Wolfenson in Washington. (RFE/RL Newsline)

NBU refuses to prevent fall of hryvnia

KYIV - Traders at the interbank exchange were selling the hryvnia at 5.28-5.55 to $1 (U.S.) on December 9, while street traders offered an exchange rate of 5.75 hrv to $1, the Associated Press reported. The National Bank said it does not plan to intervene, however, and expects the hryvnia to strengthen soon. A bank official quoted by the agency said the factors forcing the currency's decline are concerns over the Parliament's possible failure to adopt a budget and over Ukraine's debts. (RFE/RL Newsline)

Hryvnia not likely to return to corridor

KYIV - The hryvnia exchange rate on December 1 stabilized at 4.95- 4.97 to $1 (U.S.) at the interbank currency exchange, Interfax reported. According to currency market dealers interviewed by the agency, the hryvnia is not likely to return to the exchange corridor of 3.4-4.6 hrv/$1 set by the government in February. According to one dealer, there is no sense in setting a new exchange corridor. "Earlier the corridors were declared only for foreign investors. But now there are virtually no foreign investors on the market. As for domestic dealers, they have long ceased to believe in any corridor," he commented. (RFE/RL Newsline)

Privatization of energy companies halted

KYIV - State Property Fund Chairman Oleksander Bondar on December 6 ordered a halt to the privatization of energy suppliers, which had been decreed by the president in the summer. The fund said privatization has been halted in connection with "difficulties in energy supplies in the winter period [as well as] the need to ensure efficient state control over the operation of energy companies and the process of the branch's restructuring." The privatization of energy companies has so far resulted in revenues totaling 90 million hrv ($18.5 million U.S.). The state has retained a controlling interest in 20 of Ukraine's 27 regional energy suppliers. (RFE/RL Newsline)

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