NEWSBRIEFS

Procurator says Lviv resolution is illegal

LVIV - The Lviv Procurator's Office had reviewed Lviv City Council Resolution No. 699 "On the Protection of the Lviv Sound Environment." After serious consideration of the resolution on Russian songs, the Procurator's Office stated that it contradicts the Constitution of Ukraine and Ukrainian laws. According to the Procurator's Office, the City Council took on the authority of a legislative body. Ihor Melnyk, Lviv City Council deputy, said: "The resolution was political by nature. We tried to create an act within our authority to protect our state language. The Procurator's Office stated that we exceeded our authority." (Eastern Economist)

Over 5 M tourists will visit this year

KYIV - Over 5 million foreign tourists will visit Ukraine this year, said the vice-chairman of the Department for Tourism at the State Committee for Sports and Tourism, Hennadii Naumenko. He added that the committee is studying the possibility of issuing visas for foreigners at border crossings and other measures to attract foreigners to Ukraine. Since independence the profits from tourism to the state budget were 18 billion hrv. On average each tourist spends $500-600 (U.S.) in Ukraine. Around 60 percent of the tourists come from Russia, while 20 to 25 percent are from Belarus and Poland. (Eastern Economist)

Zhulynskyi promotes Orthodox unity

KYIV - Vice Prime Minister for Humanitarian Affairs Mykola Zhulynskyi said on August 14 that "Ukrainian Orthodoxy, which is today split into three branches, should be one and unified, and it should consolidate the Ukrainian people," Interfax reported. He added that the Russian Orthodox Church opposes the creation of a single Autocephalous Orthodox Church in Ukraine. Dr. Zhulynskyi was commenting on the meeting of the Council of Bishops of the Russian Orthodox Church in Moscow, which condemned the attempts of the Ukrainian Orthodox Church - Kyiv Patriarchate and some Ukrainian politicians to create a Church independent of Moscow. The Russian Orthodox Church considers the Ukrainian Orthodox Church - Moscow Patriarchate as the only canonical Orthodox Church in Ukraine and regards the Kyiv Patriarchate's followers as "schismatics." (RFE/RL Newsline)

Greens picket Austrian Embassy

KYIV - The Green Party and Green Youth of Ukraine picketed the Austrian Embassy in Kyiv after the signing of an agreement to import trash into Ukraine. "Ukraine is not Europe's waste dump," stated the activists during the picketing. The vice-chairman of the Green Party, Ihor Voronov, said that on May 31 Austrian Franz Glas and Mykolaiv-based TeploEnergoServis had signed an agreement for joint activity to develop environmentally friendly refining of waste. Mr. Voronov added that Ukraine has accumulated over 10 billion tons of waste and the technology should be directed at refining this waste, rather than servicing the needs of developed countries. (Eastern Economist)

80 percent of debts to teachers are paid

KYIV - The government has paid 80 percent of the wage debts to teachers, said Prime Minister Viktor Yuschenko during his meeting with medical workers. He added that the wage problems of the teachers and medical staff are similar, and the method of resolution should be the same. The government has allocated another 65 million hrv to the payment of debts to the teachers. The total debt for social payments to the medical workers is 133 million hrv and there are plans to pay them off by the end of the year. (Eastern Economist)

Ukraine's GDP grows by 5 percent

KYIV - The State Statistics Committee reported on August 14 that in the first seven months of this year Ukraine's gross domestic product increased by 5 percent, compared with the same period last year. The government expects GDP to rise 2 percent this year. Last year's GDP shrank by 0.4 percent. (RFE/RL Newsline)

Foreign investment up by 58.6 percent

KYIV - Foreign investors injected a total of $420.1 million (U.S.) into Ukraine's economy in the first half-year of 2000. This is 58.6 percent more than in the same period last year, according to the State Statistics Committee. The SSC also stated the total volume of foreign capital invested by non-residents as of July 1, since investments began was $3.596 billion (U.S.). Furthermore, non-resident capital was $221.2 million in the second quarter of this year, up from last year's $117 million. (Eastern Economist)

Rukh's reunification seen as possible

KYIV - Rukh-Udovenko and Rukh-Kostenko plan to unite by year's end, said National Deputy Oleh Sheremet. He added the unification is opposed by individual national deputies in the administration of both parties. Mr. Sheremet added that he is a member of the initiative group for unification of the parties and stated that the unification should happen at the lower level. Rukh should become a democratic organization where the lower level controls the administration. Mr. Sheremet added that both Rukhs are influenced by groups of oligarchs; in such a situation a unification initiative from the administration is as possible as "the unification of political interests of Verkhovna Rada National Deputy Ihor Bakai and Vice Prime Minister Yulia Tymoshenko," said Mr. Sheremet. (Eastern Economist)

Air crash in Congo kills 28

KYIV - According to preliminary information, two Ukrainian citizens were aboard an AN-26B aircraft, which crashed in the Republic of Congo. All 28 passengers and crew of the aircraft died in the crash. The aircraft was piloted by a Russian-Ukrainian crew. (Eastern Economist)

Kyiv to repay $200 M ahead of schedule?

KYIV - Serhii Yaremenko, head of the hard-currency regulation department at the National Bank of Ukraine, told journalists on August 10 that the International Monetary Fund is likely to demand that Ukraine return $200 million worth of credits ahead of the repayment schedule, Interfax reported. According to Mr. Yaremenko, the IMF Board of Directors can make such a demand as a sanction for the bank's overstating of its hard currency reserves in 1997. Mr. Yaremenko said the bank is able to return such a sum immediately because Ukraine's hard currency reserves are currently at $1.22 billion. He admitted, however, that the earlier repayment would harm Ukraine from a political viewpoint, causing "losses in other operations with capital." (RFE/RL Newsline)

Ukraine prepares for more gas debt talks

KYIV - Prime Minister Viktor Yuschenko has said Ukraine's delegation for another round of gas debt talks with Russia will be headed by Fuel and Energy Minister Serhii Yermilov, the Eastern Economist Daily reported on August 10. Mr. Yuschenko added that the status of the delegation has not yet been determined and will depend on the status of its Russian counterpart. He noted that Kyiv's gas debt payment proposals include granting Russia a concession to part of Ukraine's gas transportation network. According to the prime minister, the concession will extend from five to 10 years and details will be determined during the upcoming meeting. (RFE/RL Newsline)

Pension debts to be paid by mid-September

KYIV - Prime Minister Viktor Yuschenko on August 10 pledged that the government will repay all pension debts by September 15, Interfax reported. This is the third consecutive promise by Mr. Yuschenko's Cabinet of Ministers to do away with the country's pension backlog, which on July 1 amounted to $478 million hrv ($88 million U.S.). In February the government said it will pay all pension arrears by the end of this year, while last month it promised to do that by October 1. (RFE/RL Newsline)

Cabinet pledges support to coal industry

KYIV - Vice Prime Minister Yulia Tymoshenko told the Trade Union of Coal Industry Workers on August 12 that the government will soon earmark 55 million hrv ($10.1 million U.S.) to support domestic coal mines and 25 million hrv to buy coal from them for power plants, Interfax reported. Ms. Tymoshenko also said that in September the government will be able to pay in cash for all coal purchased from domestic mines for electricity and heat-generating plants. Last month the government selected 15 Polish and Russian companies to deliver coal to Ukrainian power plants for this winter. It is estimated that by the end of the year those plants will buy a total of about 3 million tons of imported coal worth 400 million hrv. (RFE/RL Newsline)

11.7 percent industrial growth reported

KYIV - The State Statistics Committee reported on August 4 that Ukraine's industrial production grew by 11.7 percent in the first seven months of this year compared with the same period last year. In another report on what seems to be an economic recovery after years of decline and stagnation, the State Committee for Industrial Policy said Ukraine's industrial exports in the first six months of this year increased by 22 percent compared with the same period in 1999. (RFE/RL Newsline)

Yuschenko visits Georgia

TBILISI, Georgia - Prime Minister Viktor Yuschenko and Georgian State Minister Gia Arsenishvili signed four bilateral cooperation agreements in Tbilisi on August 4, Caucasus Press reported. Mr. Yuschenko also met with Parliament Chairman Zurab Zhvania and President Eduard Shevardnadze, and announced that Kyiv will donate 50,000 tons of grain to Georgia. During his talks with Mr. Zhvania, the Ukrainian prime minister proposed that the GUUAM member-states (Georgia, Ukraine, Uzbekistan, Azerbaijan and Moldova) create a free trade zone. He further complained that it is not economical for Ukraine to import oil from Georgia as the transit tariffs imposed by the latter raise the price too high. In his weekly radio broadcast on August 7 President Shevardnadze characterized Ukraine as occupying "a special place" among the states Georgia considers its friends. (RFE/RL Newsline)

Ukraine reports deflation in July

KYIV - The State Statistics Committee on August 3 reported that the country posted a 0.1 percent deflation rate in July. The committee attributed the deflation to a seasonal drop in food prices, saying that food prices dropped 0.4 percent, while non-food prices went up 0.6 percent. Inflation was 18.7 percent in the first six months of 2000, well above the government's projected year-end inflation rate of 15.9 percent. (RFE/RL Newsline)

Renewal of IMF loan affects inflation

KYIV - Acting Economics Minister Viktor Kalnyk said on August 2 that the level of inflation in Ukraine in 2000 will depend on whether the IMF renews its suspended $2.6 billion loan program by November, Interfax reported. "If we restore cooperation with the IMF, the inflation rate will be moderate - no more that 24 to 25 percent. If we fail to do this, this figure will be much higher," Mr. Kalnyk told journalists. (RFE/RL Newsline)

Kuchma signs telecom privatization bill

KYIV - President Leonid Kuchma on August 8 signed the long-debated bill on the privatization of Ukraine's telecommunications giant Ukrtelekom, Interfax reported. The Parliament approved the bill last month. The bill calls for the government to keep a controlling 50 percent plus one share stake and auction off at least 25 percent of the company's shares. The State Property Fund estimates that the budget may obtain $548 million from Ukrtelekom's privatization. Ukrtelekom's gross revenue in 1998 was 2.4 billion hrv ($440 million U.S.). (RFE/RL Newsline)

World Bank projects amount to $1.9 B

KYIV - Dusan Vujovic, head of the World Bank's mission in Ukraine, has said the total portfolio of projects developed under the bank's new strategy for Ukraine may amount to $1.9 billion over three years, Interfax reported on August 7. Mr. Vujovic noted that the bank's key program in Ukraine may be a three-year loan of some $750 million, provided that Kyiv continues its reformist course and resumes cooperation with the International Monetary Fund. According to Mr. Vujovic, the loan is intended to support the government in implementing reforms and fulfilling its program, which was approved by the Parliament in April. (RFE/RL Newsline)

36 illegal migrants detained near border

KYIV - Border guards in Ukraine's northern Sumy region recently detained 36 illegal migrants from Asian countries. Three Pakistanis, 26 Indians and seven Afghanis illegally crossed into Ukraine from Russia, and border guards stopped their truck 15 kilometers inside Ukraine, said Oleksander Sluma, a border guard spokesman. Mr. Sluma said 33 other migrants had been detained in the region in the previous two weeks. The detained were from India, Bangladesh, Nigeria and Sierra Leone, he said. Last year 14,646 migrants were detained in Ukraine, up from 11,744 in 1998 and 10,776 in 1998, Mr. Sluma said. Ukraine has seen a growing influx of illegal migrants since the 1991 collapse of the USSR and a loosening of its border regime. Many migrants try to sneak into Europe with the help of guides. (Associated Press)

St. Petersburg: new capital of union

MOSCOW - The secretary of state of the Union of Belarus and Russia, Pavel Borodin, and St. Petersburg Governor Vladimir Yakovlev announced on August 8 that within two to three years St. Petersburg will serve as the base for the new Parliament of the Union of Russia and Belarus, the Kommersant Daily reported on August 9. According to Mr. Borodin, construction of a new center for the legislators will be undertaken by the U.S.-based firm of Cushman & Wakefield. He added that he has already directed the president to draft the appropriate decree authorizing its construction. "The only thing remaining is a political decision about the creation of a single government of Russia and Belarus," Mr. Borodin said. (RFE/RL Newsline)

New economy minister is named

KYIV - President Leonid Kuchma on August 9 appointed Vasyl Rohovyi as minister of the economy, Interfax reported. Mr. Rohovyi was minister of the economy from April 1998 to January 2000, when he was appointed first deputy head of the presidential administration. Mr. Rohovyi's predecessor, Serhii Tyhypko, resigned in June and won a parliamentary seat in by-elections held that same month. (RFE/RL Newsline)

Population continues to decrease

KYIV - The State Statistics Committee reported on August 9 that the population of Ukraine fell to 49.47 million from 49.71 million at the beginning of this year. The committee said deaths are outpacing births in the country by more than two to one. Ukraine's population has been declining steadily since 1991, when it stood at 52.06 million. (RFE/RL Newsline)

100,000 government jobs to be cut

KYIV - About 100,000 employees of the budget sector administration will be dismissed by the end of the year, stated First Vice Prime Minister Yurii Yekhanurov. This step will be taken to lower the pressure on the state and local budgets next year, and are a part of the administrative reform program. Mr. Yekhanurov added that in the second half of the year the state will not save any money on these dismissals, since compensation payments must be issued to those dismissed. (Eastern Economist)

Copyright © The Ukrainian Weekly, August 20, 2000, No. 34, Vol. LXVIII

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