NEWSBRIEFS (04/25/99)

NEWSBRIEFS

EBRD stalls on N industry loans

KYIV - The European Bank for Reconstruction and Development has postponed a decision on whether to finance the completion of two nuclear reactors in Ukraine to compensate Kyiv for energy losses following the expected closure of the Chornobyl power plant. EBRD Deputy Chairman Charles Frank said that while the cost of finishing the two reactors, located in Khmelnytskyi and Rivne, meets bank criteria, Ukraine must also meet international nuclear safety requirements and reduce barter payments for electricity before receiving an EBRD loan. Mr. Frank added that other criteria include the "real privatization" of energy distribution firms and the availability of financing from other institutions. (RFE/RL Newsline)

EC to announce nuclear waste tender

KYIV - European Commission Nuclear Safety Department head Norber Justin announced on April 14 that the EC plans to announce a tender for construction of a complex of buildings to handle the nuclear waste that will result from closure of the Chornobyl nuclear power plant. EC officials commented on April 14 that the total cost of construction would be in the region of 38.5 million euros. The money will be taken from the EC budget within the TACIS program. The winners of the tender are expected to be announced next January, while construction is scheduled to be completed by June 2002. Chornobyl was originally scheduled for closure by 2000, but rows over funding for replacement facilities between Ukraine and European organizations have left the process far behind schedule. (Eastern Economist)

Three presidents meet in Vilnius

VILNIUS - Lithuanian President Valdas Adamkus hosted his Ukrainian and Polish counterparts, Leonid Kuchma and Aleksander Kwasniewski, for talks on April 15 at the seaside resort of Palanga. The three leaders discussed various issues of regional cooperation and the crisis in Kosovo, and President Kuchma unveiled a proposed peace plan which has been circulated throughout the international community. President Adamkus reaffirmed Lithuania's goal of joining NATO, saying the alliance is an inseparable element of European security, BNS reported. The three presidents also hosted the conference "Regional Integration of Transportation" in Klaipeda the same day. President Kwasniewski called for further development of the Baltic and Black seas' transport systems, as well as the "Via Baltica" project linking the Baltic states and Poland via a modern highway. (RFE/RL Newsline)

Kuchma seeks socially oriented reforms

KYIV - The Ukrainian president told a meeting at the Labor and Social Policy Ministry on April 13 that "the social dimension of the reforms under way must be their dominant feature and the social factor must be regarded as a major ingredient of stabilization and economic growth." Leonid Kuchma criticized the performance of the Cabinet of Ministers in the sphere of social policy, but ruled out any significant Cabinet reshuffles until the presidential elections on October 31. "The people and myself have run out of patience, [but] a reshuffle would serve no good purpose," he said. (RFE/RL Newsline)

Kuchma fires energy officials

KYIV - President Leonid Kuchma on April 16 fired vice ministers of energy Yurii Ulitych and Serhii Kuzmenko for "abuse of authority" and Zinovii Busio, head of the National Commission for Energy Regulation, for "serious negligence" in his work, Ukrainian Television reported. Mr. Kuchma also instructed the energy minister to dismiss directors of two energy companies. President Kuchma made the personnel decisions after reading preliminary findings of an investigation into alleged abuses in the energy sectors. (RFE/RL Newsline)

Investment climate report questioned

KYIV - A Ukrainian delegation - including Finance Minister Ihor Mitiukov and National Bank of Ukraine Chairman Viktor Yuschenko - has told a European Bank for Reconstruction and Development board meeting in London that Ukraine is an attractive place for foreign investors, an RFE/RL correspondent reported on April 18. Several Western business leaders publicly questioned Kyiv's assessments and urged speedier reforms. They said administrative hurdles, foreign exchange restrictions, and an incomplete legal framework make Ukraine difficult and risky for foreign investors. (RFE/RL Newsline)

Deputy chief comments on BSF

KYIV - Deputy Naval Forces Commander Anatolii Pakhlia said on April 13 that "The most pressing issues for the Ukrainian navy to be addressed in planned additional BSF treaties are those of mutual debt cancellation and designated use of BSF port infrastructure." Commander Pakhlia added that the additional treaties were currently being worked on. On the health of the fleet, he commented, "Thanks largely to state support and financing, almost half of the 52 ships received from division of the Black Sea Fleet have been repaired and are now operational." Summing up, he added, "we are now faced with only technical issues." (Eastern Economist)

Tarasyuk on Belarus-Russia-Yugoslavia

KYIV - Foreign Affairs Minister Borys Tarasyuk told journalists on April 16 that the creation of a union of Belarus, Russia and Yugoslavia will not provide stability and security to Europe and will not end the crisis in Kosovo. "It would threaten European stability, especially when one of these states has nuclear weapons," Reuters quoted him as saying minutes before Russia's State Duma voted in favor of letting Yugoslavia join the union of Belarus and Russia. (RFE/RL Newsline)

Ukraine's economy still falling

KYIV - Ukraine's gross domestic product (GDP) decreased by 4.2 percent in the first quarter of 1999, as compared to the same period last year, the Associated Press reported on April 15, citing Ukrainian Economy Minister Vasyl Rohovyi. Mr. Rohovyi added that Ukraine's positive achievement in January-March was a low inflation rate of 3.5 percent. Meanwhile, the State Gas and Oil Committee has reported that Ukraine's gas and oil production dropped by 1.5 percent and 5 percent, respectively, in the first quarter of 1999. (RFE/RL Newsline)

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