NEWSBRIEFS (07/07/02)

NEWSBRIEFS

Russia, Ukraine agree on gas

KYIV - Meeting in Kyiv on July 1, Ukrainian First Vice Prime Minister Oleh Dubyna and Russian Vice Prime Minister Viktor Khristenko signed a protocol agreement on Russian natural-gas transit via Ukraine and use of Ukrainian underground gas-storage facilities, Interfax-Ukraine reported. According to the agreement, which is valid until 2003, Russian natural gas transiting Ukraine will amount to a total of 128.7 billion cubic meters, of which 110 billion are earmarked for Western Europe and the rest for Moldova and Russia. The Ukrainian state company Naftohaz Ukrainy will charge $1,093 per 1,000 cubic meters per 100 kilometers of transit. Russia's Gazprom will pay the transit costs by subtracting them from gas sales to Ukraine, charging $50 for 1,000 cubic meters in 2003, the same price charged in the first half of 2002. The difference will be paid in cash by Ukraine. The two countries also reached agreement that Ukraine store 5 billion cubic meters of Russian gas in 2002, and more in subsequent years. Russia is to pay for the storage in cash, but the two sides did not disclose the price. Ukraine currently has 13 underground gas-storage facilities capable of storing 30 billion cubic meters. (RFE/RL Newsline)

NATO, Ukraine to review relationship

BRUSSELS - The upcoming meeting of the Ukraine-NATO Commission to be held in Kyiv on July 9 will focus on the current state of Ukraine-NATO relations, according to NATO Secretary-General George Robertson. Interfax-Ukraine reported on June 28 that, speaking to Ukrainian journalists in Brussels, Mr. Robertson announced that he plans to meet with President Leonid Kuchma, Prime Minister Anatolii Kinakh and other members of the Cabinet of Ministers during his weeklong stay in the Ukrainian capital. When asked about the basing of the Russian Black Sea Fleet on Ukrainian territory and its future if Ukraine were to join the alliance, the NATO chief said that this is a "strictly academic question," as Ukraine has not formally requested permission to join NATO. However, there is no set rule on such a matter. Mr. Robertson went on to say that "Ukraine's recent declaration and the letter from the National Security and Defense Council announcing its decision of May 23 to seek Ukrainian integration into NATO" raises the prospects of a "distant possibility of membership, but today the matter of submitting a request to join is not on the table." (RFE/RL Newsline)

Police, tax officers pool efforts

KYIV - Leaders of the Internal Affairs Ministry and the State Tax Administration held a joint session in Kyiv on June 27 at which they pledged to combine their efforts in combating money laundering, the UNIAN news service reported. Internal Affairs Minister Yurii Smirnov noted that the problem of money laundering and outflow of capital from Ukraine results from the fact that 50 percent of economic activity in the country takes place in the shadow zone. State Tax Administration chief Mykola Azarov said that 356 offshore companies own stakes ranging from 10 to 98 percent in "basic Ukrainian enterprises" in the power industries, as well as the metallurgical and mining branches. A survey by the State Tax Administration has shown that a majority of those offshore companies are not even registered as entities conducting economic activities. (RFE/RL Newsline)

President speaks on Constitution Day

KYIV - President Leonid Kuchma said in a solemn statement that the adoption of the Ukrainian Constitution of Ukraine on June 28, 1996, was the most important event in the history of independent Ukraine, UNIAN reported. But he added that the Constitution "already requires some improvements to bring it into line with societal demands." Mr. Kuchma cautioned, however, against "hasty and non-systemic" changes in the country's basic law. "Let us learn first to respect and inflexibly obey the Constitution, and begin a constitutional reform only after that," he proposed. According to a poll conducted by the Oleksander Razumkov Center of Economic and Political Studies between June 17 and 25, 47.1 percent of Ukrainians think the Constitution should be changed since it does not meet societal requirements. (RFE/RL Newsline)

Kuchma sees army reform as key task

KYIV - President Leonid Kuchma said on June 26 that "improving the structure and functions of Ukraine's armed forces and other military formations is a primary step in the implementation of a stage-by-stage process of deepening Ukraine's cooperation with NATO, which is to end with Ukraine joining the alliance," the UNIAN news agency reported. (RFE/RL Newsline)

Kyiv patriarch receives state medal

KYIV - On June 26 President Leonid Kuchma decorated Patriarch Filaret, the head of the Ukrainian Orthodox Church - Kyiv Patriarchate, with the Order of Yaroslav the Wise Order (4th degree), UNIAN reported. Patriarch Filaret said at the ceremony that his Church supports Ukrainian statehood and does everything in its power to avoid religious confrontation in Ukraine. He presented an icon to President Kuchma. (RFE/RL Newsline)

Pakistan seeks to buy Ukrainian arms

KYIV - A delegation from Pakistan, headed by Zafir Jaffer, the head of the weapons purchasing department of the Pakistani military, arrived in Ukraine on June 26. According to the Associated Press, the delegation is looking to modernize its tanks and aircraft with Ukrainian technology and know-how. Pakistan is one of the largest buyers of Ukrainian arms. In 1996-2000 Pakistan spent some $800 million on Ukrainian arms and military equipment - the bulk of it on 300 T-80YD tanks. According to Interfax, Pakistan is seeking to refurbish its T-69, T-72 and unspecified U.S.-built tanks, and to modernize its fleet of aircraft, including U.S. F-16s and Russian CY-27s. (RFE/RL Newsline)

Rada delegates reps to OSCE assembly

KYIV - Verkhovna Rada Chairman Volodymyr Lytvyn has authorized the make-up of a Verkhovna Rada permanent delegation to the OSCE Parliamentary Assembly of the Organization for Security and Cooperation in Europe, the UNIAN news service reported on June 26. The delegation is composed of Oleh Bilorus from the Yulia Tymoshenko Bloc; Mykola Zlochevskyi from the Social Democratic Party (United); Oleksander Masenko from the Communist Party; Ihor Ostash and Oleksander Tretiakov from Our Ukraine; and Yulii Ioffe, Mykola Kruhlov and Serhii Shevchuk from United Ukraine. (RFE/RL Newsline)

Kuchma meets with Mongolian leader

KYIV - President Leonid Kuchma and his Mongolian counterpart, Natsagiin Bagabandi, signed agreements in Kyiv on July 1 aimed at improving bilateral economic ties, the Associated Press reported. Mr. Kuchma said Ukraine is interested in Mongolian exports of copper and rare metals, while Mongolia is interested in help from Kyiv in modernizing its military hardware and mining industry. Trade turnover between the two countries was just $7.11 million in 2001. Officials from the two countries signed several agreements, including one on avoiding double taxation and others on cooperation in science and education. President Natsagiin was scheduled to meet with Prime Minister Anatolii Kinakh, Verkhovna Rada Chairman Volodymyr Lytvyn and other officials before leaving on July 3. (RFE/RL Newsline)

Odesa Philharmonic gets national status

KYIV - President Leonid Kuchma on June 13 signed a decree granting national status to the Odesa Philharmonic Orchestra. The orchestra thus becomes the first organization in the performing arts in Ukraine outside of the nation's capital to acquire such status. In 1993 the orchestra was granted federal status by the Cabinet of Ministers of Ukraine, becoming the first regional organization in the performing arts in Ukraine to acquire federal status. The new national status will provide for a 100 percent raise to the musicians' salaries. The orchestra's music director and principal conductor for the past 11 years has been Hobart Earle, the first U.S. citizen to become music director of an orchestra in Ukraine. Having first conducted the orchestra in 1991 before the independence of Ukraine, in 1994 Mr. Earle became the first foreigner in the history of independent Ukraine to be awarded the title of "Distinguished Artist of Ukraine." (Odesa Philharmonic)

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