NEWSBRIEFS (07/18/99)

NEWSBRIEFS

Molotov cocktails aimed at U.S. Embassy

KYIV - At approximately 2 a.m. on July 8 two unknown assailants lobbed two Molotov cocktails at the U.S. Embassy. According to militia called to the scene, the home-made bombs fell to the ground and exploded. Firemen were not called because the fire was almost immediately extinguished. Embassy officials commenting on the bombing said that the Embassy had not received any threats prior to the incident, and no one has yet claimed responsibility for the bombing. (Eastern Economist)

Illegal immigration on the rise

KYIV - According to the State Border Guards Committee, there are about 60,000 illegal immigrants in Ukraine. The authorities are preparing to deport 2,630 of them on suspicion of prostitution, drug trafficking and other crimes. Most of the immigrants listed for deportation are from Afghanistan, China, Pakistan and Vietnam. The committee has asked the government to allocate $1.8 million to have the immigrants put on a ship and dispatched to a port in China or India. Since 1991 there has been an increase in the number of immigrants from poor Asian countries passing through Ukraine on their way to Western Europe. Last year, Ukrainian border guards detained some 12,000 illegal immigrants. (RFE/RL Poland, Belarus and Ukraine Report)

Ukraine's Russians form new group

KYIV - A new umbrella organization of Ukrainian Russians - the Russian Community - was established in Ukraine in late June by delegates from 18 regions gathered at a congress in Kyiv. The Russian Community founding congress pledged to defend the Russian language as well as ethnic Russian and Russian-speaking citizens in Ukraine. The first nationwide gathering of ethnic Russians in Ukraine was held in May to establish the Congress of Russians of Ukraine. Another meeting, calling itself the Congress of Russian Organizations of Ukraine, was held in early June and nominated its head, Oleksander Bazyliuk, as a candidate in the presidential elections. (RFE/RL Poland, Belarus and Ukraine Report)

12 parties support president's re-election

KYIV - Twelve democratically oriented parties issued a statement on July 10 expressing support for President Leonid Kuchma on the fifth anniversary of his presidency, RFE/RL's Ukrainian Service reported. The statement noted that during the last five years Ukraine has established itself as a state recognized by the world community. It added that "only Leonid Kuchma will be able to secure the further consistent implementation of reforms." The statement was signed by, among others, the Agrarian Party, the Liberal Party, the National Democratic Party and the Party of Muslims of Ukraine. (RFE/RL Newsline)

Hottest day in over 100 years

KYIV - The air temperature on July 7 in Kyiv reached 39 degrees Celsius (102.2 degrees Fahrenheit) - the highest in 117 years. (Eastern Economist)

Kyiv seeks to postpone bond payment

KYIV - Ukraine and the Dutch-based bank ING Barings are continuing negotiations on Kyiv's redemption of an overdue $155 million bond. The June 9 deadline was extended to July 9, but the two sides have not yet agreed on a payment scheme. Ukraine has proposed to pay off only 20 percent and convert the rest into three-year bonds. As of last week, Ukraine had $1.3 billion in hard-currency reserves, but the government wants to save those funds for other debt payments that are due later this year and in 2000. (RFE/RL Newsline)

Rada bans sale of Ukrtelekom

KYIV - Ukrainian legislators on July 9 voted 235-23 to reject a bill that would have sanctioned the privatization of more than 25 percent of Ukrtelekom, which employs some 130,000 people, while ensuring that the state retains a majority stake in the company. The Parliament said there is no need to privatize Ukrtelekom since the company is operating at a profit. President Leonid Kuchma criticized the decision as a political move, adding that proceeds from the sale would have been used to pay off wage and pension arrears. (RFE/RL Newsline)

French firms to build N waste facility

KYIV - A consortium of three French firms led by the Framatome state company has signed a deal with Ukraine on building a nuclear waste storage facility at the Chornobyl nuclear power plant. The European Bank for Reconstruction and Development will finance the $72 million contract. The facility, which will have a storage capacity of 3,000 tons, is scheduled to be completed by 2003. Vissarion Kim, director of Ukraine's Enerhoatom nuclear energy company, described the construction of the storage facility as a "step toward the timely closure of the [Chornobyl] station." (RFE/RL Newsline)

Police remove plant manager

KYIV - Police on July 7 forced Vitalii Meshyn, former director of the Mykolaiv Alumina Plant, out of his office and "isolated him in another room," the Eastern Economic Daily reported. The government, which holds a majority stake in the plant, on June 24 appointed a new director to replace Mr. Meshyn. The dismissal has provoked protests among the plant's 7,000 workers. According to Mr. Meshyn, the government fired him in order to put the plant under the control of an international metallurgical company that already controls much of the aluminum production in the former Soviet Union. Last week the Verkhovna Rada passed a statement declaring Mr. Meshyn's dismissal illegal and asking the government to revoke it. (RFE/RL Newsline)

Youth protest proliferation of tax officers

KYIV - The Molod - Nadiia Ukrainy (Youth - The Hope of Ukraine) all-Ukrainian association on July 8 protested the "proliferation" of tax officers with a demonstration outside the State Tax Administration. The protest featured a "ceremonious, free of charge and VAT-free" handout of condoms to STA workers. The action is dedicated to a new surge in the "birth rate" of tax collectors, and the introduction of district tax inspectors, who will be authorized to conduct searches of taxpayers' homes. Association leader Vadym Hladchuk said Ukraine has seen an increase in the number of brutal raids on entrepreneurs by tax authorities. He connected the increase with the upcoming presidential election. Mr. Hladchuk said this is "the final blow to the constitutional right of Ukrainian citizens." The action is designed to draw public attention to the willful and "foul" behavior of individual tax officers who ignore presidential decrees for deregulation of entrepreneurship. (Eastern Economist)

Rada warns against dictatorship

KYIV - The Verkhovna Rada on July 2 adopted a statement claiming that the Ukrainian government is illegally helping President Leonid Kuchma in his preparations for the October 31 presidential election. The statement warns against the threat of "replacing democratic principles with a government dictatorship" in Ukraine. It adds that the government has "usurped" the media and put pressure on other presidential candidates. All of Mr. Kuchma's main presidential rivals - Yevhen Marchuk, Oleksander Moroz, Petro Symonenko, Oleksander Tkachenko and Natalia Vitrenko - are members of Parliament. (RFE/RL Newsline)

Azerbaijan, Ukraine sign agreements

BAKU - Ukrainian Foreign Affairs Minister Borys Tarasyuk held talks in Baku on June 30 with his Azerbaijani counterpart, Tofik Zulfugarov, focusing on more intensive cooperation between NATO and the GUUAM member-states (Georgia, Ukraine, Uzbekistan, Azerbaijan and Moldova), Ukrainian arms sales to Azerbaijan and the possible export of Azerbaijan's Caspian oil via Ukraine, Turan and Interfax reported. The following day, the two ministers signed cooperation agreements on motor transportation, sea trade and tourism. On July 1 Mr. Tarasyuk met with Parliament Chairman Murtuz Alesqerov and with President Heidar Aliev. Describing Ukraine as one of Azerbaijan's most important partners, Mr. Aliev expressed support for Ukrainian President Leonid Kuchma's bid for re-election this fall. President Aliev also acknowledged, but declined to divulge the content of, a new Ukrainian proposal for resolving the deadlocked Karabakh conflict, according to Interfax. (RFE/RL Newsline)

Mitiukov earmarks technology budgets

KYIV - During Cabinet Day at the Verkhovna Rada on June 8 administration officials reported to lawmakers on financial support for the science and technology sector. The Parliament also heard reports by Accounting Chamber Chairman Valentyn Symonenko, and by the Committee for Science and Education. Finance Minister Ihor Mitiukov announced that 1.08 percent of GDP, or 1.3 billion hrv, will be earmarked for projects in science and technology in 1999, including 1.36 percent, or 671 million hrv, from the state budget. Mr. Mitiukov blamed cuts in science support on first quarter budget revenue shortfalls. The Cabinet has imposed a temporary ceiling on science funding at 671 million hrv, or 81 percent of the 1999 target figure, to be removed automatically should revenues go up. "The only area to receive 100 percent of target allocations by June 1 is fundamental research," Mr. Mitiukov said. Unpaid salaries to science workers total 95 hrv million as of June 1. "It's right where it was back in January," said Mr. Mitiukov, who promised to pay down arrears by the end of 1999. He stressed the need to prioritize fundamental research and hold tenders to competitively select bidders to carry out research projects. (Eastern Economist)

Land privatization proceeds slowly

KYIV - The privatization of land is taking place at a sluggish pace in Ukraine, according to the Eastern Economic Daily. So far, some 27 million hectares of land have been privatized, with an average of 4.2 hectares per landowner. The main factors holding up the process are the lack of appropriate legislation and the negative public attitude toward land privatization. A recent poll found that 37 percent of Ukrainians are opposed to the privatization of land. (RFE/RL Poland, Belarus and Ukraine Report)

End of duty-free trade with Belarus

KYIV - The Ukrainian government has abolished the regime of duty-free trade with Belarus under which the value-added tax was not imposed on goods imported to Ukraine from Belarus. The decision came in response to Belarusian President Alyaksandr Lukashenka's February decree imposing a VAT on Ukrainian exports to Belarus. The duty-free trade regime between the two countries lasted for only one year. (RFE/RL Poland, Belarus and Ukraine Report)

U.S. announces scholarship competitions

KYIV - The U.S. Embassy in Ukraine will issue 15 scholarships for scientists. The scholarships will enable selected scientists from Ukraine to conduct research in the U.S. for up to one year on a variety of topics, including political and social science, philosophy, international relations, legal issues, economics and business. (Eastern Economist)

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