NEWSBRIEFS

Federation Council stalls treaty approval

MOSCOW - State Duma Chairman Gennadii Seleznev told reporters on January 27 that the Russian Duma may send the Russian-Ukrainian Treaty of Friendship, Cooperation and Partnership to President Boris Yeltsin for signature without ratification by the Federation Council. The council voted by 115-15 with nine abstentions to postpone ratification of the treaty until mid-February. Mr. Seleznev blamed the vote on Moscow Mayor Yurii Luzhkov, who, according to Russian Television, managed to persuade some governors not "to give away Sevastopol and Crimea" to Ukraine. The deputy secretary of Ukraine's National Security and Defense Council, Oleksander Razumkov, warned on NTV that non-ratification would have extremely negative consequences, such as suspension of the existing agreement on the Black Sea Fleet. Russian Foreign Affairs Minister Igor Ivanov was more calm, saying that the upper body's decision was evidence only of its reluctance to make a hasty decision on such an important matter. (RFE/RL Newsline)

Kyiv 'disappointed' by non-ratification

KYIV - The Ukrainian Foreign Affairs Ministry on January 28 issued a statement saying that Kyiv is "disappointed" by the decision of Russia's Federation Council to postpone the ratification of the Ukrainian-Russian Treaty on Friendship, Cooperation and Partnership. The ministry argued that the treaty is an "indicator" of good-neighborly and equal relations. It added that it hopes the Federation Council will ratify the treaty "in the near future." (RFE/RL Newsline)

Kuchma: Russia will approve treaty

KYIV - President Leonid Kuchma, speaking in Kyiv on January 30, said that people should not "overdramatize" Moscow's delay in ratifying the comprehensive Ukrainian-Russian treaty, ITAR-TASS reported. Speaking upon his return from the World Economic Forum in Davos, Switzerland, Mr. Kuchma said he shares Russian Prime Minister Yevgenii Primakov's view that, in time, "Russian parliamentary deputies will gain a greater understanding of the need to ratify the treaty." Mr. Primakov said in Moscow the following day that "we need very close relations with Ukraine," but such ties are impossible "if we lay any territorial claims on Ukraine." President Kuchma said talks on a customs union between Belarus, Russia and Ukraine are premature. (RFE/RL Newsline)

... warns Russian crisis poses dangers

KYIV - President Leonid Kuchma on January 29 said that the Russian financial crisis creates political dangers and economic problems for Ukraine, an RFE/RL correspondent reported from Davos, Switzerland. Speaking at the World Economic Forum, Mr. Kuchma said turmoil in Russia has encouraged elements in Ukraine that are not committed to reforms. Mr. Kuchma said Ukraine's reform model must be improved, and market mechanisms, competitiveness, private ownership and investment opportunities addressed. He added that low currency reserves are a pressing problem and that agreements with the International Monetary Fund will have to be renegotiated because of a worsening economic climate. (RFE/RL Newsline)

Defense minister decries lack of funds

KYIV - Defense Minister Oleksander Kuzmuk said on January 29 that the Ukrainian army will stagnate in 1999 because of a lack of funds, the Associated Press reported. Mr. Kuzmuk said the 1.7 billion hrv ($496 million U.S.) pledged for defense in the budget is "nothing for a country like Ukraine." He said insufficient funding in previous years has resulted in wage arrears of six months for many officers and soldiers. The military has no money for "modernizing, training or buying weapons," he added. The Ukraine military has some 320,000 personnel, about one-third of its strength at that time the Soviet Union collapsed. (RFE/RL Newsline)

Italian president offers to aid Ukraine

KYIV - Visiting Italian President Oscar Luigi Scalfaro on January 27 called for international assistance to help Ukraine overcome its financial problems, saying that Ukraine "can count on Italy's support." He added, "We cannot work miracles, but we can guarantee a real, concrete friendship" and said that Italy will promote Ukraine's interests at World Bank and International Monetary Fund meetings. That promise follows Ukraine's recent talks with an IMF mission in Kyiv, which failed to result in the resumption of a $2.2 million loan program. Ukrainian Television reported that negotiations with the IMF will be continued next week. (RFE/RL Newsline)

Ukraine's PACE membership threatened

KYIV - The Parliamentary Assembly of the Council of Europe (PACE) has said it will suspend Ukraine's membership unless it "takes steps toward meeting its commitments," Reuters and Ukrainian Television reported on January 28. Two days earlier the assembly had threatened to suspend Ukraine unless it fully meets its commitments before the June PACE session. It has criticized Ukraine primarily for failing to abolish the death penalty. Under a presidential moratorium, there have been no executions in Ukraine since March 1997, although courts continue to pass death sentences. The assembly is demanding that Ukrainian lawmakers adopt the moratorium as law. But lawmakers are resisting such a move, arguing that up to 80 percent of the population is opposed to banning the death penalty. (RFE/RL Newsline)

Kuchma continues reshuffling Cabinet

KYIV - President Leonid Kuchma has appointed Andrii Honcharuk as minister for foreign economic relations and Raisa Bohatyriova as health minister. Both had served as vice ministers. The appointments follow a Cabinet shake-up earlier last month. At a January 14 Cabinet session, Prime Minister Valerii Pustovoitenko had introduced Volodymyr Kuratchenko as newly appointed first vice prime minister. Mr. Kuratchenko's main task is to "enforce order in the oil and gas sector," Ukrainian News quoted Mr. Pustovoitenko as saying. Mr. Kuratchenko will also be expected to stand in for Mr. Pustovoitenko when the prime minister is unavailable. Mr. Kuratchenko, who was chairman of the Zaporizhia Oblast prior to his appointment, replaces Anatolii Holubchenko, who on January 28 was appointed first vice-chairman of the State Property Fund, a government agency dealing with privatization of state assets. Also on January 14 Mr. Pustovoitenko said President Kuchma had appointed Mykhailo Hladii, former chairman of the Lviv Oblast, to the newly created post of vice prime minister for agricultural issues, and Mr. Kuchma dismissed Education Minister Mykhailo Zghurovskyi, replacing him with Valentyn Zaichuk, deputy director for research at the Institute of Pedagogy at the National Academy of Sciences and vice minister of education in 1995-1997. On January 15 there was news that Environment Minister Yaroslav Movchan had been fired. The departure of seven other vice ministers, including vice ministers of the economy Leonid Minin and Serhii Romaniuk, and vice minister of emergencies Volodymyr Holosha also was announced. (RFE/RL Newsline)

IMF leaves without approving loan

KYIV - An International Monetary Fund mission wrapped up its visit to Kyiv on January 26 without recommending the resumption of a $2.2 billion loan program, the Associated Press and Interfax reported. "The mission has not made any final conclusion, but I can say that we have laid the foundations for a positive conclusion," President Leonid Kuchma's aide Valerii Lytvytskyi commented. Mr. Lytvytskyi added that the IMF mission noted positive developments in Ukraine, including the timely adoption of the 1999 budget, improved tax collection, a stable exchange rate for the hryvnia and macroeconomic stability. At the same time, the mission was dissatisfied with the pace of structural and administrative reforms, as well as of reforms in the energy and agricultural sectors. Mr. Lytvytskyi said the IMF-Ukraine consultations "may continue after the mission's return or after a government delegation's brief visit to the IMF headquarters." (RFE/RL Newsline)

Ukraine starts repaying debt to Gazprom

MOSCOW - Gazprom Executive Board Chairman Igor Bakai told journalists on January 25 that Ukraine has begun repaying its gas debt to Russia, Interfax reported. Mr. Bakai said that last month Ukraine paid $7 million in cash to Gazprom and shipped $28 million worth of commodities in payment for gas supplies. Ukraine's state-run and private companies owe Gazprom some $1 billion for last year's gas supplies. (RFE/RL Newsline)

Poland, Canada pledge support to Ukraine

WARSAW - Visiting Canadian Prime Minister Jean Chrétien praised Poland for its political and economic reforms, adding that the country can serve as a "bridge between the European Union and the rest of Europe," the Associated Press reported on January 25. Mr. Chrétien joined Polish Prime Minister Jerzy Buzek in calling for both countries to help Ukraine pursue reform. "Once you show trust in Ukraine, market reforms and democratic reforms will be moving forward quite quickly," Mr. Buzek said. Prime Minister Chrétien admitted that "two middle powers like Poland and Canada" can combine efforts to assist Ukraine's development. (RFE/RL Newsline)

SBU announces spy-catching rates

KYIV - During 1998, the Security Service of Ukraine (SBU) succeeded in halting the activities of 12 agents of foreign secret services and revealed 14 attempts by Ukrainian citizens to pass on secret information to foreign embassies. This was announced on January 5 at the SBU collegium headed by SBU Chairman Leonid Derkach. Nineteen foreign citizens were deported for various violations in 1998, and 14 others have not been allowed to enter the country. (Eastern Economist)

Rada decrees cutback in armed forces

KYIV - The Verkhovna Rada on December 22, 1998, passed a bill reducing the current 320,000 servicemen by 10,000 and the army's 100,000 civilian staff by the same amount in 1999, Ukrainian news media reported. The Ukrainian government has said it can spend only some 1 billion hrv ($290 million U.S.) on the army next year. The Defense Ministry, however, maintains that the armed forces need at least three times that amount. (RFE/RL Newsline)

Historical TV serial under production

KYIV - Dovzhenko Film Studios is shooting a new Kozak era TV-serial called "Chorna Rada," based on a novel by 19th century writer Panteleimon Kulish. The script-writer is Hryhorii Shton; the producer is Mykola Zaseiev-Rudenko. Vasyl Lanovyi and Bohdan Stupka will play Kozak leaders Bohdan Khmelnytskyi and Ivan Briukhovetskyi, respectively. (Eastern Economist)

Fines canceled to promote tax collection

KYIV - President Leonid Kuchma has signed a decree canceling fines on companies that pay all their 1998 taxes by February, Ukrainian News reported. Mr. Kuchma's decision is seen as a measure to improve poor tax collection. The nationwide tax debt skyrocketed from 2.3 billion hrv in January ($1.1 billion U.S. at the exchange rate at the time) to 10.2 billion hryvni ($3 billion U.S.) as of December 1. (RFE/RL Newsline)

Ukraine to open, close embassies

KYIV - The Foreign Affairs Ministry plans to close three diplomatic offices and open four new ones. Foreign Minister Borys Tarasyuk said on December 29, 1998, that the countries to get new embassies are Sweden, Holland and Cyprus. He did not name the embassies that will be closed. According to Mr. Tarasyuk, the effectiveness of these embassies is still being examined and a final decision on closures will be based primarily on the "economic effectiveness" of the offices. (Eastern Economist)

Germans inject more cash into Ukraine

KYIV - The German government decided to increase the German-Ukrainian Fund by an additional 2 million DM, on December 18, 1998, raising it to 12 million DM. The German Embassy in Ukraine reported that the relevant agreement was signed at the National Bank of Ukraine on December 18. From the beginning of the program's implementation, Ukrainian small and medium-sized enterprises have received more than 600 credits worth a total of 22 million DM, and already about 12 million DM has been returned. The fund was founded in September 1996 through an initiative of former Chancellor Helmut Kohl. (Eastern Economist)

Nationalists to bone up on Stalin

LUHANSK - Officials at Rukh's regional office in Luhansk have begun studying the works of Soviet leader Joseph Stalin. Luhansk Rukh leader Volodymyr Svynytskyi said on January 16 that a better understanding of Stalin's works, available in Ukrainian, was needed to "better understand the reasons for founding collective farms." He said Rukh intends to use this knowledge against the Communists during the forthcoming presidential campaign. (Eastern Economist)

Hetman honored with new scholarship

KYIV - First Ukrainian International Bank founded a scholarship named after the former chairman of the National Bank of Ukraine, Vadym Hetman, who was assassinated April 22, 1998. The stipend, worth 100 hrv, will be given to the best students of the Kyiv State Trade and Economic University. Mr. Hetman's murderers are yet to be found. (Eastern Economist)

Customs confiscates cultural artifacts

KYIV - In 1998 134 separate attempts to smuggle historical and cultural artifacts were uncovered. Customs officers confiscated ancient manuscripts, collections of paintings and works of art, including 117 ancient icons, 89 icons and 595 historically valuable coins. Custom workers argue that their work could be more effective if the State Customs Service had the status of a law-enforcement agency. (Eastern Economist)

Scientist to be considered for Nobel

KYIV - Nobel Prize committee members have asked Donetsk scientist and medical professor Anatolii Soloviov and his colleague Viktor Soroka to submit their work for consideration for a Nobel Prize in physiology. Dr. Soloviov, an endocrinologist, attracted attention after the Ukrainian Ecology Academy awarded him the Vernadskyi Award. He has discovered certain adverse affects of heavy metals on the body and proposed preventive and curative treatments. (Eastern Economist)

Official unemployment continues to rise

KYIV - The State Statistics Committee said on December 21 that the official unemployment rate as of December 1, 1998, stood at 3.5 percent of the work force. Those officially unemployed number 954,100, up 1.5 times as compared to 1997 figures. Nationally, there are 27 people competing for every job opening. The worst hit region, according to official figures, is Ivano-Frankivsk, were 302 people compete for every employment opportunity. (Eastern Economist)

Copyright © The Ukrainian Weekly, February 7, 1999, No. 6, Vol. LXVII

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