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End Note: TIGHTENING OF EASTERN BORDERS GIVES KYIV WESTERN CONTACTS
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KUCHMA, YELTSIN TO DISCUSS ECONOMIC CRISIS. Ukrainian President Leonid Kuchma on 18 September traveled to Moscow for two days of informal talks with Russian President Yeltsin. According to Interfax, Kuchma is expected to raise the issue of the economic crises plaguing both countries and propose the creation of a free trade zone in the CIS rather than a customs union, an idea supported by Russia and other CIS members. Yeltsin is likely to raise the issue of Ukraine's unpaid debts for Russian natural gas and Russian naval bases in the Black Sea. Sergei Prikhodko, deputy chief of the presidential staff, told reporters on 17 September that Primakov will also meet with Ukrainian Prime Minister Valeriy Pustovoytenko and Russian Central Bank chairman Viktor Gerashchenko to discuss financial cooperation. "Nezavisimaya gazeta" cited the fact that Yeltsin's Ukraine visit as well as others to Kazakhstan and Uzbekistan had to be postponed or rearranged as evidence that Russia's foreign policy problems are being neglected because of the economic crisis. JAC

TIGHTENING OF EASTERN BORDERS GIVES KYIV WESTERN CONTACTS

Earlier this week, Polish Foreign Minister Bronislaw Geremek called on Ukraine to impose full control over its eastern borders as an important step toward preserving visafree travel to Poland and providing for easier contacts with the West.

Speaking at the Kyiv Institute of International Relations on 16 September, Geremek said Poland intends to resist Western pressure to introduce visas for Ukrainians. But, he said, Ukraine must take firmer steps to counter the smuggling of weapons and drugs from the East across Polish territory.

Poland has been under pressure from the EU to tighten control over its eastern border. German Interior Minister Manfred Kanther told Polish officials during a visit to Warsaw last month that the government should bring its visa policies into line with those of the EU. He added that this is a condition of Poland's EU membership.

Warsaw has signed agreements on visa-free travel and on the re-admission of illegal migrants with Kyiv. But it has restricted entry for Russians and Belarusians, whose governments failed to reach similar accords.

Ukraine has been concerned that any restriction on travel to Poland would adversely affect its economy. Poland is an important source of trade and employment to thousands of Ukrainians. During a meeting with Geremek, Ukraine's Prime Minister Valeriy Pustovoytenko said that Kyiv might set up several free economic zones along the border with Poland to further promote economic contacts.

Polish-Ukrainian bilateral trade turnover reached almost $1.7 billion in 1997 and has grown rapidly so far this year.

Trade with Poland has become even more important for Ukraine since the onset of Russia's economic crisis. Russia is Ukraine's main trading partner, accounting for 40 percent of trade turnover, and Russia's financial crisis has disrupted those ties with Ukraine

Geremek emphasized in his speech that the Russian crisis provides a reminder of the need for speeding up reforms and expanding contacts with the West. He said that Poland would like to see Ukraine in all European institutions and is ready "to support Ukraine at this difficult moment."

The economic decline in Russia is certain to affect Ukraine's economy. In addition, the continuing political uncertainty in Moscow does not augur well for many unsolved problems in Ukrainian-Russian relations.

The Russian State Duma has failed to ratify a UkrainianRussian friendship treaty recognizing Ukraine's independence. And there is still no agreement on delimiting borders between the two states, seven years after Ukraine's declaration of independence. Influential Russian politicians still talk about what they call the "inherent" unity of the two countries within Russian-dominated Slavic nationhood.

This state of affairs has not been lost on Ukrainian leaders. During Geremek's visit to Ukraine, there were frequent mentions of a strategic partnership between Kyiv and Warsaw. Stricter control over Ukraine's borders with Russia and Belarus appears to be an important element in the future development of such a partnership.

Following talks with Geremek, Volodymyr Horbulin, head of Ukraine's Security and Defense Council, said that "we have to stop the smuggling of drugs, stop organized crime and illegal immigration through our eastern border."

Such a program would have important political implications in reinforcing Ukraine's national and territorial separateness from Russia.

Poland is to enter NATO next year and is currently in accession talks with the EU. Geremek said that Poland's membership in these institutions could benefit Ukraine. Currently, the main problem is the one of visas. And resolving that problem depends on how Ukraine seeks to tighten its eastern borders, he said.

Meanwhile, Polish President Aleksander Kwasniewski is to meet with his Ukrainian counterpart, Leonid Kuchma, in Crimea next week. They are to discuss bilateral relations and the regional repercussions of the Russian crisis.

End Note: TIGHTENING OF EASTERN BORDERS GIVES KYIV WESTERN CONTACTS
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UKRAINIAN POLICE ARREST PROMINENT OPPOSITIONIST. The Ukrainian police have arrested Mykola Syvulskyy, a senior official in the opposition party Hromada's shadow cabinet, on charges of embezzlement and tax evasion, Ukrainian Television and AP reported on 17 September. Syvulskyy, former deputy head of the National Bank and former deputy finance minister, is suspected of transferring more than $5 million from the Ukrhazprom state gas company to Unified Energy System, a private gas company. According to AP, Syvulskyy's arrest is the "latest chapter in an investigation" launched by state prosecutors against former Prime Minister Pavlo Lazarenko, leader of the influential Hromada party. Lazarenko's opponents accuse him of abusing his authority and reaping huge profits when he was premier in 1996-1997. JM

KUCHMA SAYS HE WILL NOT SIGN 'POPULIST BUDGET.' Ukrainian President Leonid Kuchma said on 17 September that he will "never sign a populist budget," Ukrainian Television reported. In his opinion, the budget must be realistic with regards to both revenues and expenditures. Kuchma added that he is "not quite satisfied" with the government's performance during the current crisis. According to him, the government lacks highly qualified professionals, particularly in economics. JM

TIGHTENING OF EASTERN BORDERS GIVES KYIV WESTERN CONTACTS

Earlier this week, Polish Foreign Minister Bronislaw Geremek called on Ukraine to impose full control over its eastern borders as an important step toward preserving visafree travel to Poland and providing for easier contacts with the West.

Speaking at the Kyiv Institute of International Relations on 16 September, Geremek said Poland intends to resist Western pressure to introduce visas for Ukrainians. But, he said, Ukraine must take firmer steps to counter the smuggling of weapons and drugs from the East across Polish territory.

Poland has been under pressure from the EU to tighten control over its eastern border. German Interior Minister Manfred Kanther told Polish officials during a visit to Warsaw last month that the government should bring its visa policies into line with those of the EU. He added that this is a condition of Poland's EU membership.

Warsaw has signed agreements on visa-free travel and on the re-admission of illegal migrants with Kyiv. But it has restricted entry for Russians and Belarusians, whose governments failed to reach similar accords.

Ukraine has been concerned that any restriction on travel to Poland would adversely affect its economy. Poland is an important source of trade and employment to thousands of Ukrainians. During a meeting with Geremek, Ukraine's Prime Minister Valeriy Pustovoytenko said that Kyiv might set up several free economic zones along the border with Poland to further promote economic contacts.

Polish-Ukrainian bilateral trade turnover reached almost $1.7 billion in 1997 and has grown rapidly so far this year.

Trade with Poland has become even more important for Ukraine since the onset of Russia's economic crisis. Russia is Ukraine's main trading partner, accounting for 40 percent of trade turnover, and Russia's financial crisis has disrupted those ties with Ukraine

Geremek emphasized in his speech that the Russian crisis provides a reminder of the need for speeding up reforms and expanding contacts with the West. He said that Poland would like to see Ukraine in all European institutions and is ready "to support Ukraine at this difficult moment."

The economic decline in Russia is certain to affect Ukraine's economy. In addition, the continuing political uncertainty in Moscow does not augur well for many unsolved problems in Ukrainian-Russian relations.

The Russian State Duma has failed to ratify a UkrainianRussian friendship treaty recognizing Ukraine's independence. And there is still no agreement on delimiting borders between the two states, seven years after Ukraine's declaration of independence. Influential Russian politicians still talk about what they call the "inherent" unity of the two countries within Russian-dominated Slavic nationhood.

This state of affairs has not been lost on Ukrainian leaders. During Geremek's visit to Ukraine, there were frequent mentions of a strategic partnership between Kyiv and Warsaw. Stricter control over Ukraine's borders with Russia and Belarus appears to be an important element in the future development of such a partnership.

Following talks with Geremek, Volodymyr Horbulin, head of Ukraine's Security and Defense Council, said that "we have to stop the smuggling of drugs, stop organized crime and illegal immigration through our eastern border."

Such a program would have important political implications in reinforcing Ukraine's national and territorial separateness from Russia.

Poland is to enter NATO next year and is currently in accession talks with the EU. Geremek said that Poland's membership in these institutions could benefit Ukraine. Currently, the main problem is the one of visas. And resolving that problem depends on how Ukraine seeks to tighten its eastern borders, he said.

Meanwhile, Polish President Aleksander Kwasniewski is to meet with his Ukrainian counterpart, Leonid Kuchma, in Crimea next week. They are to discuss bilateral relations and the regional repercussions of the Russian crisis.