NEWSBRIEFS (02/02/03)

NEWSBRIEFS

Kuchma elected to head CIS council

KYIV - President Leonid Kuchma was elected to chair the Council of CIS Heads of State at the group's informal summit on January 29 in Kyiv, ITAR-TASS and Interfax reported from Kyiv. Ukraine's status within the CIS is a point of dispute, since Ukrainian diplomats and officials routinely described it as an "associate member" throughout the 1990s because the Verkhovna Rada never ratified the 1994 CIS Charter. But Mr. Kuchma on December 28, 2002, noted that the same charter makes no mention of "associate member" status. Ukrainian Hromadske Radio on January 15 suggested that Ukraine's chairmanship of the CIS Heads of State Council might thus be "legally vulnerable." Russian President Vladimir Putin, speaking to journalists after the CIS summit on January 29, noted that Mr. Kuchma was elected on the initiative of the Russian side. "I made this proposal without taking counsel with other leaders, who feared this move might weaken the organization. But my logic was that Ukraine is one of the biggest CIS member-states and the second by the economy volume," Mr. Putin said. He added that the rotation principle must be observed as well. The Russian president first proposed that Ukraine head the council in November 2002. Before Mr. Kuchma, the CIS Council of the Heads of State was led by Russian Presidents Boris Yeltsin and Putin. (RFE/RL Newsline)

Presidents launch "Year of Russia"

KYIV - Presidents Leonid Kuchma of Ukraine and Vladimir Putin of Russia on January 27 in Kyiv inaugurated the Year of Russia in Ukraine, a yearlong festival of Russian culture in Ukraine that is intended to strengthen ties between the two countries, Ukrainian and Russian media reported. "I am sure [the festival] will strengthen our old and strong friendship, which will continue for centuries," Mr. Putin said, according to the Associated Press. "Today we can say with full confidence that strategic partnership with Russia is not a tribute to geopolitical realities or the long joint past. The development of partnership between our countries is demanded by life itself, by globalization and integration processes in the modern world," ITAR-TASS quoted Mr. Kuchma as saying. The same day, the culture ministers of both countries signed a plan of cooperation between their ministries for 2003-2007. (RFE/RL Newsline)

Filaret cautious on "Year of Russia"

KYIV - The patriarch of Kyiv and all Ukraine, Filaret, has stressed the danger of holding the year of Russia in Ukraine. Addressing a congress of the Ukrainian National Rukh on January 25, he said that the forces that seek to separate eastern and western Ukraine have become active now and that national-democratic forces should take account of this in their activity. Patriarch Filaret said he believes that, on the one hand, one can welcome the improvement of cultural ties with Russia, however one should bear in mind that "certain forces are trying to use the year of Russia in Ukraine not in favor of the Ukrainian state." The leader of the Ukrainian Orthodox Church - Kyiv Patriarchate emphasized the importance of further steps to create a single Orthodox Church in Ukraine, "This is an important issue in building up the state which needs to be settled," because a single state is impossible without a single church. (UNIAN)

Yanukovych solicits foreign investment

WASHINGTON - Speaking at the World Economic Forum in Davos, Switzerland, on January 25, Prime Minister Viktor Yanukovych said Ukraine is ready and willing "to reach cardinal growth of foreign investments" into its economy, Interfax reported. Mr. Yanukovych said that Ukraine's investment climate is relatively attractive and that legislation is in place to protect investors' interests. He also said Ukraine hopes for closer cooperation with the European Union following its enlargement. "Today Ukraine is able to make [a] significant contribution to improve the EU's competitiveness in the field of security, economy, science and technology, [and] ecological safety," he said. He noted there are three basic motives for such a conclusion: "First, we have gone through the most difficult stage of transformation," Mr. Yanukovych said. "Second, the existing critical mass of reforms yields positive results. Third, Ukrainian society is getting more and more consolidated around the idea of integration into the family of European nations." (RFE/RL Newsline)

Kostenko's Rukh changes name

KYIV - The moderate nationalist Ukrainian National Rukh led by Yurii Kostenko held a congress in Kyiv on January 25 and changed its name to Ukrainian National Party (Ukrainska Narodna Partia), Ukrainian media reported. Mr. Kostenko, who was elected leader of the new party, told the congress that the Ukrainian National Rukh had failed to unify with the National Rukh of Ukraine led by Hennadii Udovenko because of "essential differences of opinion" regarding the principles of such unification. According to Mr. Kostenko, the Udovenko faction suggested that the Ukrainian National Rukh disband itself and that its members join the National Rukh of Ukraine. The previously monolithic Rukh split into the Kostenko and Udovenko factions in 1999. (RFE/RL Newsline)

Ukraine, NATO publish action plan

KYIV - Ukraine's Foreign Affairs Ministry and NATO on January 22 published on their official websites the text of the Ukraine-NATO Action Plan adopted by the NATO-Ukraine Commission at the NATO summit in Prague in November (see http://www.nato.int/docu/basictxt/b021122a.htm), Ukrainian media reported. "The purpose of the Action Plan is to identify clearly Ukraine's strategic objectives and priorities in pursuit of its aspirations towards full integration into Euro-Atlantic security structures, and to provide a strategic framework for existing and future NATO-Ukraine cooperation under the Charter," the text says, adding that the plan will be reviewed periodically. The plan lays out jointly agreed-upon principles and objectives in five sections: political and economic issues; security, defense and military issues; information protection and security; legal issues; and mechanisms of implementation. (RFE/RL Newsline)

Ukraine sees first sanctions

KYIV - The Financial Action Task Force on Money Laundering (FATF) has confirmed that the United States and Canada introduced sanctions against Ukraine because of the country's flawed legislation to fight money laundering, ITAR-TASS reported on January 22, quoting FATF spokeswoman Helen Fischer. FATF in December recommended that its 29 member-states scrutinize financial transactions before any business is done with Ukrainian companies or individuals, regularly report on transactions with Ukrainian businesses and bankers, and follow stringent procedures in opening foreign branches of Ukrainian banks. (RFE/RL Newsline)

Minister: money-laundering law sufficient

KYIV - Justice Minister Oleksander Lavrynovych said on January 23 that Ukraine has met all the demands of the Paris-based Financial Action Task Force on Money Laundering (FATF) regarding legal measures to combat money laundering, Interfax reported. On November 28, 2002, the Verkhovna Rada passed an anti-money-laundering law; on December 24, it amended the law following criticism from FATF; and on January 16 lawmakers adopted amendments to the Criminal Code toughening penalties for money laundering. Some FATF member-states have introduced sanctions against Ukraine, citing the country's flawed anti-money-laundering legislation. (RFE/RL Newsline)

Gas supplies to energy producers cut

KYIV - Haz Ukrainy, a component of the Naftohaz Ukrainy oil and gas supplier, has decided to cut gas deliveries to Ukraine's power-generating and distributing companies to 16 million cubic meter per day as of January 24, which means a 50 percent reduction of the current supplies, Interfax reported on January 24. The company said the move was prompted by the fact that power producers now pay for just 5.6 percent of the gas they consume. Last year, the power-generating companies accumulated more than 77 million hrv ($14.4 million) in debt to Haz Ukrainy. Moreover, they have not yet paid for 1.3 billion cubic meters of gas delivered to them in 1999-2001. (RFE/RL Newsline)

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