NEWSBRIEFS (11/09/97)

NEWSBRIEFS

Verkhovna Rada halts privatization

KYIV - The Verkhovna Rada on November 4 passed a resolution barring the sale of state property and demanding that President Leonid Kuchma name a new privatization chief. The measure, approved by 257 lawmakers, prohibits the State Property Fund from concluding contracts on the purchase or sale of state companies until a chief for the fund is named and approved by lawmakers. The fund's acting director, Volodymyr Lanovyi, cast doubt on the power of the parliamentary order, saying in televised comments that it "contradicts current legislation," and vowed to continue his work. He said, however, that the resolution will hurt Ukraine's already bruised business image abroad and prompt "an outflow of investment." He accused lawmakers of acting as the "puppets" of Ukrainian business executives who he said are seeking to stop sell-offs of large enterprises in order to gain control themselves. (Associated Press)

Tbilisi, Kyiv to form peacekeeping unit

TBILISI - Meeting in the capital of Georgia on October 29, Georgian Defense Minister Vardiko Nadibaidze and his Ukrainian counterpart, Oleksander Kuzmuk, agreed to create a joint peacekeeping battalion, Caucasus Press reported. President Leonid Kuchma of Ukraine, who is also on an official visit to Tbilisi, told journalists that the peacekeepers' primary task will be to safeguard transportation routes through Abkhazia. The two countries' defense ministers also signed a protocol on developing military-technical cooperation. ITAR-TASS reported that Ukraine intends to purchase an unspecified number of modernized SU-25 military aircraft from Georgia. (RFE/RL Newsline)

Ukraine, Russia hold joint exercises

KYIV - Some 15,000 naval personnel from Russia and Ukraine began a three-day exercise on the Black Sea on October 30. The 17 Russian ships and 11 Ukrainian ships are simulating a situation of internal conflict within an unspecified country. Ukrainian officials said that despite conducting the exercises with Russia, Kyiv remains committed to expanding ties with NATO. (RFE/RL Newsline)

Ashgabat, Kyiv agree on gas supplies

ASHGABAT, Turkmenistan - Meeting in Ashgabat on October 30, Ukrainian First Vice Prime Minister Anatolii Holubchenko and Turkmen President Saparmurat Niyazov agreed that Turkmenistan will supply Ukraine with 3 billion cubic meters of gas next year and 20 billion cubic meters in 1998, Interfax reported. In exchange, Ukraine will help Turkmenistan build chemical plants and a bridge across the Amudarya River. The estimated cost of the latter project is $80 million. The question of how Ukraine will settle its outstanding $1.5 billion debts for earlier gas deliveries was not resolved. (RFE/RL Newsline)

Ukraine's problems in Bosnia continue

PRAGUE - The NATO-led SFOR forces in Bosnia continue to hold seven Ukrainian soldiers on smuggling charges and are calling on Kyiv to conduct a thorough investigation, Western agencies reported on November 2. Ukraine has denied that the soldiers are guilty of smuggling, but Kyiv said on October 31 that it has uncovered facts suggesting the men were involved in the illegal use of military vehicles. The Ukrainian government has dispatched two senior military officers to investigate the charges. But the Ukrainian defense minister repeated Kyiv's insistence that charges against the seven are unjustified. (RFE/RL Newsline)

Mars to build plant in Kyiv Oblast

KYIV - The Mars Corp. will build a pet food production plant by the end of 1997 in the Kyiv Oblast in the town of Brovary, The plant will start production by the end of this year. The total value of the investment in the new factory is US $12 million (U.S.) Production of pet food at the plant will use exclusively Ukrainian foodstuffs. Part of its production will be exported. Mars is linking success of the plant with future expansion in order to gauge the market in Ukraine and neighboring countries. Once the plant has sold pet foods to the value of US $40 million Mars plans to open a confectionery plant. Mars confections are presently sold in Ukraine by a subsidiary of Mars, Masterfoods and Effem, which has been working in Ukraine since August and sells Mars confectionery products directly to Ukrainian retailers. (Eastern Economist)

Transdniester discussed at CIS summit

CHISINAU - Russian President Boris Yeltsin told a press conference in the Moldovan capital that he is ready to do whatever the Moldovan authorities say: "If you say 'now,' we withdraw [our troops from the Transdniester] immediately. If you agree to wait two to three months, we will postpone the removal till the situation is stabilized," Infotag reported. Moldovan presidential adviser Anatol Taranu told the news agency that although the CIS summit ended without the signing of a document on the Transdniester, the meeting will "eventually have a favorable impact" on the process of finding a settlement. He said the absence of Transdniester leader Igor Smirnov from the summit is proof of Tiraspol's reluctance to work within a legal framework and its attempts "to play backstage politics." Mr. Smirnov had sent a letter to participants demanding that the "Transdniester Moldovan Republic [be included] in the full-scale political and integration process of the CIS," Infotag reported on October 23. Mr. Smirnov said that during the past seven years, the "Transdniestrian Republic has proved its viability." He emphasized that under "current conditions," it is necessary to preserve the sovereignty of both Moldova and Transdniester and "to build a common state consisting of two equals." Mr. Taranu also said Presidents Yeltsin, Petru Lucinschi of Moldova and Leonid Kuchma of Ukraine agreed that Russia must play a more active role in the settlement. (RFE/RL Newsline)

Ukraine to sell military trucks to India

KYIV - The AvtoKraz factory in Kremenchuk will sell 600 military trucks to India starting next year, Interfax-Ukraine reported on October 16. The deal is valued at some $24 million. Ukraine is now the world's fifth-largest arms exporter. (RFE/RL Newsline)

Ukraine, Romania exchange documents

KYIV - Ukraine's Foreign Affairs Minister Hennadii Udovenko and his visiting Romanian counterpart, Adrian Severin, on October 22 exchanged documents confirming the ratification of the basic treaty signed by the two countries in June, Interfax and Radio Bucharest reported. Both ministers said the treaty signifies a "radical turning point" in bilateral relations. Mr. Udovenko told journalists that both countries have "progressive legislation" on the rights of national minorities and that there is no "political obstacle" to education in the mother tongue for the Romanian minority in Ukraine. But he added there are "technical and financial difficulties" that must be overcome. (RFE/RL Newsline)

Pustovoitenko wants input from business

KYIV - Prime Minister Valerii Pustovoitenko said he thinks it reasonable for entrepreneurs to take part in preparatory work on several projects of the Cabinet of Ministers, including a list of vital import goods. Speaking at the first meeting of the Cabinet's Entrepreneurs Council on October 15, Mr. Pustovoitenko said entrepreneurs must participate in the privatization of oblast energy-generating companies and enterprises in the communications sector. Privatization of the communications sector will begin in January. The prime minister stressed that the processing and foodstuff sectors are to be developed in Ukraine. He also noted that the machine-building and light industry sectors are operating unsatisfactorily at present. (Eastern Economist)

Ukrainian economy contracts

KYIV - During the first nine months of 1997, GDP fell by 5 percent compared with the same period in 1996, Interfax reported. But the rate of decline of industrial production has slowed from 6 percent in the first quarter to 2.4 percent for the first nine months. Agricultural output fell by 6.3 percent compared with the first three-quarters of 1996. Consumer prices rose by 6.7 percent, while the comparable figure for last year was 34.8 percent. Foreign trade from January to August 1997 was down 4.5 percent from 1996, at $23.98 billion. Trade with the CIS and the Baltic states fell from 63.2 percent of total foreign trade to 53.2 percent. (RFE/RL Newsline)

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