Lazarenko tries a positive spin (05/11/97)

Lazarenko tries a positive spin

by Marta Kolomayets
Special to The Ukrainian Weekly

KYIV - Prime Minister Pavlo Lazarenko told journalists on May 6 that he expects Ukraine's Verkhovna Rada to pass the 1997 budget by May 20, which, in turn, will lay the groundwork for new foreign investments of more than $1.2 billion this year.

"I'm convinced the government has enough strength to do this and Parliament has enough intelligence to do the same," said the prime minister during a 90-minute press conference.

He attempted to put a positive spin on the current economic situation in Ukraine, predicting an economic rebound, adding that it is possible for Ukraine's GDP to grow by about 1.5 percent this year (GDP declined by 54 percent in the last five years) bringing to an end the post Soviet-economic collapse. He also noted that the economic situation is stabilizing because inflation has been brought down to 0.1 percent in April, from 2.2 percent in January and 1.2 percent in February.

Mr. Lazarenko told journalists that he sees two main priorities in Ukraine today: passing three tax reform laws and speeding up the privatization process which is to be completed by the end of 1997. Two of the tax reform laws have now been passed by the Verkhovna Rada: the value-added tax law and the draft law amending the law on taxation of business profits. The third law, which is expected to be passed soon, is the personal income tax law.

Mr. Lazarenko explained that he is now in the process of forming a panel of 15 economic experts who will advise the government on the steps needed to succeed with economic reforms.

In his first press conference since he became prime minister in July of last year, Mr. Lazarenko tried to dispel various rumors about corruption in Ukraine highlighted in the Western press over the last few weeks. He charged that "certain forces" stand behind this campaign of discreditation.

The prime minister's press conference - to which Western journalists were invited by a Washington-based public relations firm - was also clearly an attempt by Mr. Lazarenko to improve his own image.

A press packet, which contained Mr. Lazarenko's May 3 response to The New York Times article on crime and corruption in Ukraine (April 5) as well as a statement on his policies with regard to implementing economic reforms, was passed out to journalists in both Ukrainian and English. He said that he had done a thorough analysis of 41 articles in the Western press, 18 of which were negatively skewed on Ukraine.

Mr. Lazarenko admitted that "corruption exists among some government officials," but added that the fundamental reorganization of the Cabinet of Ministers' structure and a 30 percent staff reduction will help in the resolution of this problem.

[On May 5, the Parliament passed a law limiting the Cabinet to 25 members, but this law is expected to be vetoed by President Leonid Kuchma, because it undercuts a proposal submitted by Mr. Lazarenko to President Kuchma a few weeks ago. Presidential Chief of Staff Yevhen Kushnariov said that some sections of the law violate the Constitution.]

Mr. Lazarenko also used this press conference as a forum to deny involvement in United Energy Systems and rumors that he is the richest man in Ukraine and that his children study abroad. He told journalists that his son is a college student at the Ministry of Internal Affairs Academy and his two daughters are in high school at the gymnasium affiliated with Kyiv State University.

" I love this country and I have no plans to leave it," Mr. Lazarenko said.

Mr. Lazarenko also said he thinks that the prime minister should also be a deputy in the Verkhovna Rada and denied that he has any presidential ambitions. He said he would support President Kuchma in the next elections and that, as a member of Yednist, a centrist faction in Parliament, he will support all centrist movements, such as the Agrarian Party.

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