NEWSBRIEFS (07/22/01)

NEWSBRIEFS

Congress seeks to reduce aid to Ukraine

KYIV - William Taylor, the U.S. coordinator for assistance to the newly independent states, said in Kyiv on July 12 that the U.S. Congress may reduce assistance to Ukraine because of concerns about the slow pace of reform and the killings of two journalists, Heorhii Gongadze and Ihor Aleksandrov, the Associated Press and Interfax reported. The previous day, the House of Representatives Appropriations Committee voted to put a cap of $125 million next year on assistance to Ukraine under the Freedom Support Act, down from a cap of $170 million for 2001. The move must be approved by the U.S. Senate. "A key component of the rule of law [in Ukraine] is, of course, the investigation into the Gongadze and Aleksandrov cases," Mr. Taylor noted. He added that Washington will continue to support independent Ukrainian media through training, legal assistance and monitoring programs. (RFE/RL Newsline)

Ukraine-Russia border to be unmarked?

KYIV - Ukrainian Ambassador at Large Oleksander Kupchyshyn told journalists on July 17 that the border between Ukraine and Russia will be delimited but not demarcated, Interfax reported. "We will only perform the delimitation: the border will be only on the map," Mr. Kupchyshyn said, adding that "it has been deemed inexpedient to demarcate the Ukrainian-Russian border at the current historical stage." Mr. Kupchyshyn said Kyiv and Moscow have already agreed on 95 percent of the common land frontier. He noted that both sides differ on how to define the border in the Azov Sea and the Kerch Strait. Both sides have agreed to consider these basins as their "internal" waters. "Russia interprets the notion of internal waters as the complete absence of a frontier, while we think that it is necessary to draw a state borderline [across them]," Mr. Kupchyshyn said. Vice Minister for Foreign Affairs Oleksander Chalyi explained on July 18 that Ukraine has not completely abandoned the idea of demarcation of its border with Russia. (RFE/RL Newsline)

Rada continues to press new election law

KYIV - The Verkhovna Rada on July 12 adopted an amended version of the recently vetoed election bill, Interfax reported. As previously, the bill calls for the election of 335 parliamentary deputies under the proportional party-list system and 115 in single-mandate constituencies. "If the parliamentarians once again passed the same law, then they must have some problems with their [mental] health," President Leonid Kuchma commented. Mr. Kuchma has already vetoed three election bills intended to change the current law, under which 225 deputies are elected under the proportional party-list system and 225 in single-mandate constituencies. (RFE/RL Newsline)

Ukraine's GDP grows by 9.1 percent

KYIV - The State Statistics Committee reported on July 17 that the country's gross domestic product (GDP) increased by 9.1 percent in January-June 2001, compared with the same period last year. (RFE/RL Newsline)

Major bank goes into liquidation

KYIV - National Bank of Ukraine Chairman Volodymyr Stelmakh on July 16 announced the beginning of liquidation procedures with regard to Bank Ukrayina, one of the country's largest banks, Interfax reported. Bank Ukrayina began to default on some of its payments to clients in June, reportedly because of a large number of bad loans issued under government guarantees. Mr. Stelmakh said the bank's liquidation fund will fully return the deposits not exceeding 500 hrv ($93) to some 1.6 million depositors in the next three months. He added that Bank Ukrayina has some 100,000 clients whose deposits exceed 500 hrv. He did not specify the procedure for compensating those clients. (RFE/RL Newsline)

Chernomyrdin to expand economic ties

KYIV - Russian Ambassador to Ukraine Viktor Chernomyrdin on July 16 said he intends to "seriously and thoroughly" tackle the issue of expanding trade and economic ties between Russia and Ukraine, Interfax reported. "It's very difficult for us to solve our Russian problems without Ukraine, because the technological links of our economies are very deep," Mr. Chernomyrdin said, adding that it is also difficult for Ukraine to live without "partner relations" with Russia. Ambassador Chernomyrdin said he is planning to visit several Ukrainian regions and some sections of Ukraine's pipeline system built by Gazprom. "Ukrainian companies should come to Russian markets more bravely, because Russia is attractive for investments," Mr. Chernomyrdin said, pledging to motivate Ukrainian businessmen to invest in Russia during his trips. (RFE/RL Newsline)

Paris Club OKs debt restructuring

KYIV - The Ukrainian government and the Paris Club of Creditors on July 13 signed an accord on restructuring some $580 million of Ukrainian debts that were contracted by Kyiv before 1999, Interfax reported. Under the accord, Ukraine is to pay the restructured sum in 18 equal installments over a period of 12 years. As of May 31, Ukraine's foreign debt was equal to $9.75 billion, down by $2.65 billion since the beginning of 2001. (RFE/RL Newsline)

Rada adjourns for summer recess

KYIV - The Verkhovna Rada of the third convocation on July 13 ended its seventh session and adjourned until September 4, Interfax reported. Parliament Chairman Ivan Pliusch said the Rada adopted decisions on 560 bills and legislative issues during its seventh session. The Parliament is to gather on August 22 for a one-day session to mark the 10th anniversary of Ukraine's independence. National deputies of the Verkhovna Rada of the first and second convocations have been invited to attend the gathering. (RFE/RL Newsline)

Ukraine denies drilling violates treaty

KYIV - Ukrainian Foreign Affairs Ministry spokesman Serhii Borodenkov on July 17 denied that Ukraine is violating the 1997 basic treaty with Romania by drilling for oil and gas in the vicinity of Serpents Island (Zmiinyi Ostriv) in the Black Sea, Interfax reported. Mr. Borodenkov was responding to a "verbal note" from Romania's Affairs Foreign Ministry saying that Kyiv has no right to drill in the area as long as both countries have not demarcated the continental shelf around the island. Mr. Borodenkov said Ukraine is conducting the drilling under the "development of mineral resources" clause included in an additional accord to the treaty. (RFE/RL Newsline)

Romania, Ukraine spar on demarcation

BUCHAREST - The Romanian Foreign Affairs Ministry on July 15 said the most recent round of talks held in Kyiv over the demarcation of the continental shelf in the Black Sea has revealed "the persistence of significant differences" on interpreting the provisions of the basic treaty in regard with the delimitation of the continental shelf border in the Black Sea, the Mediafax news service reported. The next round of negotiations is to be held in Bucharest on October 1-3. The ministry also said that the Ukrainian response to its "verbal note" earlier this month on the illegality of Ukrainian drilling for gas and oil in the vicinity of Serpents Island shows that Ukraine has no intention of abandoning the drilling. (RFE/RL Newsline)

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