NEWSBRIEFS (08/15/99)

NEWSBRIEFS

Kyiv reacts cautiously to Russian reshuffle

KYIV - The newly appointed prime minister of Russia, Vladimir Putin, remains unknown to the Western world. Ukraine, however, seems to see few benefits from the shuffle in the Russian government. "Any changes in Russia's government always make Ukrainian-Russian relations more difficult," Vice Prime Minister Anatolii Kinakh said. Oleksander Moroz, presidential candidate, former chairman of Parliament and the head of the Socialist Party of Ukraine, said on August 9 that "the resignation of Sergei Stepashin's government will not influence the situation in Russia to any serious extent." Mr. Stepashin was dismissed because he began to "make his own political game" commented Mr. Moroz. Vice Prime Minister Serhii Tyhypko said the dismissal is an internal affair, "which may influence Russian-Ukrainian cooperation." He added that "changes in Russian officials often influence the work of the Ukrainian-Russian commission for economic cooperation, break agreements that were reached and personal contacts, and it's very hard to start everything from scratch." (Eastern Economist)

Peaceshield '99 under way in Lviv Oblast

YAVORIV, Ukraine - Military delegations from around the world converged on the Ukrainian military training grounds of Yavoriv, Lviv Oblast, for Peaceshield '99. The international military computer-simulated training officially got under way on August 5. Participants include defense ministers from Ukraine, Georgia, Azerbaijan and Moldova, representatives from military institutions in Bulgaria, Poland, Romania, the United States, Turkey and France, and the military attachés of Belarus, Vietnam, Greece, India, China, Poland, Romania, Slovak Republic, the United States, Finland, Switzerland, Japan, the United Kingdom and Belgium. A total of 1,238 military officials are participating, including 501 from Ukraine and 368 from the U.S. (Eastern Economist)

Canadian flight inspection team visits

KYIV - A Canadian verification group was in Ukraine on August 8-13 under the auspices of the Open Skies Agreement. This is the first visit of Canadian inspectors to Ukraine and is a reciprocal visit, as Ukrainian representatives have already visited Canada. The main aim of the inspection team is to make a training observation flight over Ukrainian territory. The flight was planned for August 11 and was to be made by an eight-member group of inspectors (six Canadian and two American) on a specially equipped Canadian Air Forces C-130H aircraft. (Eastern Economist)

Supreme Court reinstates Kyiv mayor

KYIV - The Supreme Court of Ukraine on August 6 reversed the decision of the Vyshhorod District Court canceling Oleksander Omelchenko's election as Kyiv mayor. The three-judge civil affairs collegium acted after a protest by the Supreme Court chairman against the lower court's ruling. The Vyshhorod court had annulled the election results after a complaint was filed by two losing candidates, Mykola Hrabar and Hryhorii Surkis. The Supreme Court stated that the chairman's protest "should be accepted in full." The election was the first public vote for a Kyiv mayor since Ukraine became independent in 1991. (Associated Press)

Kyiv struggles to avoid loan default

KYIV - The Finance Ministry on August 5 said some 50 percent of its Eurobonds sold through Merrill Lynch have been converted into new Eurobonds maturing in February 2001. Ukraine sold some $400 million in T-bills through Merrill Lynch in 1997 and was to have redeemed them last September. It needs around $3.5 billion to service debts by the end of 2000, but the National Bank of Ukraine has only $1.3 billion and is dependent on the IMF's $2.6 billion loan program. A government delegation was to visit the International Monetary Fund's headquarters in Washington to seek new loans. "We have agreed on some questions but others demand an elaboration of positions and wordings," the Associated Press quoted Vice Prime Minister Serhii Tyhypko as saying. Ukraine is counting on receiving some $180 million in IMF credits this month. (RFE/RL Newsline)

Military parade slated for August 24

KYIV - A military parade marking the eighth anniversary of Ukraine's independence will be held in Kyiv on August 24 starting at 10 a.m. on Independence Square. According to the Kyiv City Administration, 122 units will participate, including 36 aircraft and 14 parade battalions from the armed forces, National Guard, State Border Guard and Internal Affairs Ministry forces. The Kyiv City Administration on August 3 agreed to allocate 70,000 hrv to the 72nd Mechanized Division for helping organize the parade and feed the soldiers. The parade is being funded by the state budget. (Eastern Economist)

Privatization of energy sector ordered

KYIV - President Leonid Kuchma on August 3 signed a decree ordering the sale of 26-35 percent of shares in four energy giants that control thermal power plants and are majority-owned by the state, the Associated Press reported. At the same time, Mr. Kuchma ordered the sale of majority stakes in seven regional electricity distributors and of 26-45 percent of shares in another 12 such companies. This attempt to privatize Ukraine's energy sector comes three months after the Procurator General's Office moved to revoke privately owned stakes in seven energy-distribution companies on charges of financial machinations. (RFE/RL Newsline)

President signs law raising pension

KYIV - President Leonid Kuchma has signed a law raising the minimum monthly pension from 16.6 hrv ($4.15) to 24.9 hrv, the Associated Press reported on August 3. The Parliament adopted the law in mid-July after failing to overrule Mr. Kuchma's veto on a previous bill that would have raised the minimum monthly pension to 55 hrv. Under the signed law, those pensioners receiving less than 46 hrv a month will be paid a special living allowance of up to 21.1 hrv. (RFE/RL Newsline)

Kuchma OKs peacekeeping contingent

KYIV - President Leonid Kuchma signed a law on sending 800 Ukrainian peacekeepers to Kosovo, the Associated Press reported. Ukrainian officials said the contingent will include a 100-bed military hospital with 246 personnel, a four-helicopter unit with 90 servicemen, a 108-strong logistics company with 17 armored vehicles, and a 356-strong motorized infantry battalion. The U.S. has pledged financial assistance to install the Ukrainian contingent in Kosovo. (RFE/RL Newsline)

Inspectors arrive to certify chopper unit

LVIV - A group of four inspectors from NATO headquarters arrived in Lviv on August 9 to certify the helicopter unit belonging to Ukraine's armed forces that is to make up part of Ukraine's peacekeeping contingent in the KFOR multinational peacekeeping force in Kosovo. It is expected that the results of the inspection will be released on August 16. The unit consists of four Mi-18 transport helicopters and 90 servicemen. If the inspection is successful, the helicopters will leave by August 23 for Macedonia, where they will wait for the remainder of Ukraine's peacekeepers. Then, Ukraine's peacekeepers will head for a small settlement near Skopje, where they will be based. There, side by side with U.S. servicemen under whose control they will serve, Ukraine's personnel will carry out their mission. (Eastern Economist)

IMF mission mum on new tranche

KYIV - An IMF mission left Ukraine on August 2 without recommending the release of a new tranche of the International Monetary Fund's $2.6 billion loan program, the Associated Press reported. An IMF statement summing up the mission's two weeks of work noted that so far this year tax revenues have been lower than expected, while recent tax legislation changes have further diminished expected revenues. The IMF promised to resume discussion with Ukraine at the end of August after the government takes steps to slash spending and increase budget revenues. (RFE/RL Newsline)

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