ANALYSIS: Ukraine's prime minister satisfied with trip to U.S. (11/18/01)

ANALYSIS

Ukraine's prime minister satisfied with trip to U.S.

by Jan Maksymiuk
RFE/RL Poland, Belarus and Ukraine Report

Prime Minister Anatolii Kinakh of Ukraine has expressed satisfaction with his three-day trip to the United States last week during which he met with some top U.S. officials and representatives of the business community, as well as leaders of the World Bank and the IMF.

Mr. Kinakh said Ukraine's relations with the IMF and the World Bank are of a "long-term character and based on equal rights." Commenting on his trade negotiations with U.S. officials, the prime minister noted that they took place in a "constructive and open atmosphere" and were characterized by "willingness to seek compromises."

It remains unclear, however, what specific compromises have been found, if any. According to his earlier announcement, Mr. Kinakh traveled to Washington to urge the U.S. to grant Ukraine the status of a market economy and lift some trade limitations, in particular, the so-called Jackson-Vanik amendment, which dates back to the Cold War era and makes U.S. commercial relations with other states dependent on their emigration policies. The requirements of the amendment are based upon the country's emigration policies and prohibit the United States from establishing such relations with a country that does not allow its citizens to freely emigrate.

No specific decisions on these two issues have been reported following Mr. Kinakh's trip.

It seems that the only palpable result of Mr. Kinakh's trip was the signing of an accord whereby the U.S. Trade and Development Agency awarded a $125,000 grant to Ukrainian oil transportation company UkrTransNafta for a study of the commercialization of the Odesa-Brody pipeline that would carry Caspian oil through Ukraine to Europe. Finance Minister Ihor Mitiukov, who accompanied Mr. Kinakh on the trip, commented that the talks with the World Bank were the most successful and constructive in the last several years. But no more details have been released.

However, the visit's political aspect was no less important than the commercial talks that took place during the trip. Mr. Kinakh was the first top-level Ukrainian official to visit the United States since slain journalist Heorhii Gongadze's case sparked anti-presidential demonstrations in Ukraine this past spring in what seemed to be the country's biggest political crisis ever and President Leonid Kuchma's toughest test during his tenure.

Washington has never implicated President Kuchma in the murder of Mr. Gongadze, but it has repeatedly called for a full inquiry. Reuters on November 1 quoted some U.S. officials as saying that Mr. Kuchma is unlikely to visit Washington until the Gongadze case is properly investigated.

According to U.S. State Department spokesman Richard Boucher, Secretary of State Colin Powell raised U.S. concerns during his meeting with Prime Minister Kinakh over Ukraine's reluctance to admit responsibility for the recent downing of a Russian airliner with a stray missile. Mr. Powell also reminded Mr. Kinakh that Kyiv cannot avoid U.S. trade sanctions if it fails to address the rampant piracy of music on compact discs.

Interfax quoted the Prime Minister as saying on November 1 that the United States has put off "indefinitely" the announced introduction of trade sanctions over Ukraine's inability to curb such piracy. However, a U.S. trade official said the previous day that the U.S. has postponed the decision on the trade sanctions against Ukraine until November 15, when the Verkhovna Rada is expected to debate a bill on the protection of intellectual property.

Jan Maksymiuk is the Belarus, Ukraine and Poland specialist on the staff of RFE/RL Newsline.

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