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ACTION UKRAINE REPORT - AUR =20
An International Newsletter, The Latest, Up-To-Date
In-Depth Ukrainian News, Analysis and Commentary
Ukrainian History, Culture, Arts, Business, =
Religion,
Sports, Government, and Politics, in Ukraine and Around the =
World =20
=20
ACTION UKRAINE REPORT - AUR - Number 813 Mr. E. Morgan Williams, Publisher and Editor, SigmaBleyzer WASHINGTON, D.C., FRIDAY, FEBRUARY 9, 2007
BY MOODY'S, S&P ON GROWTH Bloomberg News, London, UK, Thursday, 08 Feb 2007
SANDORA JUICE COMPANY FreshPlaza correspondent Poland, FreshPlaza Hertenkamp, The Netherlands, Thursday, February 8, 2007
CONFIRMS WESTRON AS ITS CORPORATE SUPPLIER
Westron was founded in 1994 by Khartron (Ukraine) and
Westinghouse Electric Company (United States). Ukrainian News Agency, Kyiv, Ukraine, Wednesday, February 7, 2007
UKRAINIAN BROADCASTS BY BOTH VOA AND RADIO
FREE EUROPE/RADIO LIBERTY (RFE/RL) Broadcasting Board of Governors Washington, D.C., Monday, February 05, 2007
Irish developer also looking for investments in Ukraine Kevin O'Conner, Irish Times, Ireland, Thursday, Feb 08, 2007
UKRAINE-POLAND OIL PIPELINE PAP news agency, Warsaw, Poland, Tuesday, 6 Feb 07
OF AGRICULTURAL MACHINERY IN UKRAINE=20 By Dmytro Kuzmin, Ukrainian News Agency Kyiv, Ukraine, Friday, February 2, 2007
List of members has not been approved By Natalya Nepryakhina, The Kommersant-Ukraine Kyiv, Ukraine, Friday, February 02, 2007
TRADE, INVESTMENT AND BUSINESS IN UKRAINE Interfax Ukraine Economic, Kyiv, Ukraine, Wed, January 31, 2007
KHERSON DAIRY PLANT CJSC RODYCH Interfax Ukraine Economic, Kherson, Ukraine, Friday, January 26, 2007
Will employ 1,200 workers in Volinskiy Region Interfax-Ukraine, Kyiv, Ukraine, Wednesday, Jan 24, 2007
MINI-PLANT IN ODESA REGION BY FEBRUARY Interfax Ukraine Economic, Kyiv, Ukraine, Friday, January 26, 2007
MAKER SIKORSKY AIRCRAFT CORPORATION Interfax-AVN military news agency website, Moscow, in English 18 Jan 07 BBC Monitoring Service, United Kingdom, Thursday, Jan 18, 2007
THE ART OF FRESCO PAINTING IN UKRAINE Internet Encyclopedia of Ukraine Newsletter Dr. Marko R. Stech, Managing Director, CIUS Press Project Manager, Internet Encyclopedia of Ukraine Toronto, Ontario, Canada, February 2007
Sunday, February 11, 2007 Action Ukraine Report (AUR) #813, Article 29 Washington, D.C., Friday, February 9, 2006
GENEALOGICAL RESEARCH=20 CIUS Press, University of Alberta, Edmonton, AB, Canada, Feb, 2007 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D
By David Ibison in Stockholm and Roman Olearchyk in Kiev Financial Times, London, UK, Thursday, February 8 2007
Swedbank, Sweden's largest bank, is to acquire Ukraine's TAS-Kommerzbank
for up to $985m, continuing the eastward expansion of Sweden's banks =
away
from the mature Nordic markets to Europe's high-growth emerging markets.
The Swedish lender will acquire 100 per cent of TAS-Kommerzbank,
Ukraine's 13th-largest lender, for $735m plus an additional $250m in =
three
years if the bank's performance meets certain undisclosed criteria.
Yesterday's acquisition provides further proof that Ukraine's banking =
sector
is poised for a period of acquisitions. Foreign ownership of Ukrainian =
banks
is about 25 per cent compared with 70 per cent in Poland and 90 per cent =
in
the Czech Republic.
Several European banking groups, including the National Bank of Greece, =
are
close to completing acquisitions of two other Ukrainian banks, Forum and
Kreditprombank, and a handful of medium-sized banks are also for sale.
Ukraine has a population of 47m, nine times larger than Sweden's, but =
its
per capita gross domestic product is languishing at about $1,771, well
behind its central and eastern European neighbours. However, an expected
compound annual growth rate of 5.3 per cent over the next five years is
expected to narrow this gap.
It has total loans $834m, although non-performing loan figures were not
disclosed. Its cost income ratio is 54 per cent, down from last year's =
58
per cent but up from 2004's 39 per cent. Since 2004 it has more than
doubled its workforce and expanded its branch network.
2. UKRAINE'S CREDIT RATING MAY BE RAISED
BY MOODY'S, S&P ON GROWTH
Ukraine's credit ratings may be lifted this year by international credit =
Ukraine is the biggest former Soviet state with credit ratings below=20
investment grade, a legacy of political instability and delays in =
selling=20
state assets and gaining membership of the WTO.
"Ukraine's rating is B1, which is very low," said Jonathan Schisser, a=20
Moody's analyst in London by telephone. "We may raise it" though the=20
timing "depends on political stability and the government's ability to =
carry=20
out structural reforms."
Ukraine, a country of 47 million bordering the EU and Russia, seeks =
higher=20
credit ratings to reduce borrowing costs and win more overseas =
investment.
Foreign direct investment since the collapse of communism in 1991 totals =
$20=20
billion, less than a fifth of the amount lured by neighboring Poland. =
Higher=20
credit ratings mean lower debt costs for the government and Ukrainian=20
companies.
Ukraine's 7.65% benchmark government bond maturing in 2013 yesterday
yielded 6.09%, down from 6.66% in October 2006. President Viktor=20
Yushchenko is battling with Prime Minister Viktor Yanukovych, the man=20
he ousted two years ago in the Orange Revolution, over domestic and =
foreign
policies.
February 7. "Ukraine's rating at four to five notches behind Russia =
appears=20
somewhat unjust."
Exports including steel and grain and proceeds from shipping Russian gas =
via=20
Ukrainian pipelines to Europe make up more than half of GDP. The economy =
is=20
forecast to expand 6% a year through 2011, said Economy Minister =
Oleksandr=20
Makukha on January 30.
Ukrainian steel was traded at $455 per ton on the spot market February =
5,=20
compared with $312 per ton a year ago, according to Bloomberg data.
Average prices for Ukrainian steel will increase 5% to 7% this year from =
a=20
year ago, analysts say, including Ivan Kharchuk, an analyst at =
Kiev-based=20
largest brokerage Dragon Capital.
Average prices for Ukrainian grain were $153 per ton in January this =
year,=20
compared with $85 per ton a year ago, Bloomberg data shows. "We=20
believe there is a good prospect of an upgrade," said Ed Parker, a =
senior=20
director at Fitch sovereign group in London, in an e-mailed statement."
Although Ukraine is likely to be subject to political noise for the=20
foreseeable future, Fitch believes that political risk is of a lower =
order=20
of magnitude than two-three years ago."
Moody's raised Ukraine's outlook to positive from stable in November,=20
indicating it is ready to improve the rating. The foreign and local =
issuer=20
default rating was affirmed at B1, four steps below investment grade.=20
Fitch raised Ukraine's outlook to positive a month before that.
The foreign and local issuer default rating was affirmed at BB-, three =
steps=20
below investment grade. S&P kept its long-term foreign debt rating at =
BB-,=20
its long-term local debt rating at BB and its short-term sovereign =
credit=20
rating at B, the company said in a statement in July. The outlook =
remained=20
"stable," S&P said. -30-
Interfax - Russia, Kyiv, Ukraine, Tuesday, Feb 06, 2007
KYIV - Ukraine is proposing that Vanco International Limited sign a
production sharing agreement (PSA) on the Prikerchensky oil and gas =
field=20
in a proportion of 60:40 during industrial testing and 50:50 during =
industrial
production, Environmental Protection Minister Vasyl Dzharty told =
reporters
on Tuesday in Kyiv.
Vanco International, a subsidiary of Vanco Energy Company, in April 2006 =
won
a tender announced by the Ukrainian government on the right to reach a =
PSA
agreement on the Prikerchensky oil and gas field.
Vanco sent the Interagency Commission its initial draft of the PSA in =
July
2006 that was adjusted several times. The Ukrainian government did not =
like
the draft proposed by Vanco and instructed the commission to prepare its =
own
version in October 2006 within three months.
The field has tentative D+2+3 reserves of 30,000 tonnes of fuel units =
per
square kilometer. No drilling has been carried out at the section. =
-30-
SANDORA JUICE COMPANY
WARSAW - The Ukrainian company Sandora occupies the leading position on the Ukrainian juice market. According to the data provided by MEMRB, Sandora's share on the Ukrainian juice market was about 47% in 2006.
What is interesting, Sandora is the only producer in the Ukraine, and =
one of
the few in East Europe, who obtained the BRC certificate - the universal
British standard, which opens the doors to networks of British =
supermarkets
Sainbury, Asda, Tesco, Waitrose) and retailers in Finland, Norway, =
Sweden
and Netherlands. -30-
Send in names and e-mail addresses for the AUR distribution list.
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5. UKRAINE'S NATIONAL NUCLEAR POWER GENERATING CO
CONFIRMS WESTRON AS ITS CORPORATE SUPPLIER
Westron was founded in 1994 by Khartron (Ukraine) and
Westinghouse Electric Company (United States).
Ukrainian News Agency, Kyiv, Ukraine, Wednesday, February 7, 2007
KYIV - The Enerhoatom national nuclear power generating company has confirmed the status of Westron, a Ukrainian-American joint venture=20 based in Kharkiv, as its corporate supplier. Westron announced this in a statement, a text of which Ukrainian News obtained.
As Ukrainian News earlier reported, Westron is an affiliate of the =
Khartron
company, a producer of electronic control systems.
Westron was founded in 1994 by Khartron (Ukraine) and Westinghouse
Electric Company (United States). The company exports its products to
Russia, Lithuania, the Czech Republic, Bulgaria, Sweden, the United =
States,
and other countries.
Enerhoatom operates the four nuclear power stations in Ukraine and =
accounts
for about 50% of the total quantity of electricity generated in the =
country.=20
NOTE: Westinghouse is a member of the Ukraine-U.S. Business=20 Council in Washington, D.C.=20
UKRAINIAN BROADCASTS BY BOTH VOA AND RADIO
FREE EUROPE/RADIO LIBERTY (RFE/RL)
Reductions to the following:
[1] Ukrainian broadcasts by both VOA and Radio Free Europe/
Radio Liberty (RFE/RL);
[2] Tibetan broadcasts by VOA and RFA;
[3] VOA Portuguese to Africa; and
[4] broadcasts in Romanian, South Slavic and Kazakh by RFE/RL.
Through its broadcast services, the BBG provides the United States and =
its
leaders direct and immediate access to a worldwide audience of 140 =
million
people. Current governors are Chairman Kenneth Y. Tomlinson, Joaquin F.
Blaya, Blanquita W. Cullum, D. Jeffrey Hirschberg, Edward E. Kaufman,
Steven J. Simmons, and Mark McKinnon. Secretary of State Condoleezza
Rice serves as an ex officio member. -30-
Irish developer also looking for investments in Ukraine
He is selling some of those refurbished baroque buildings and uses the=20
Hungarian capital to trawl for developments in Eastern Europe, notably =
in=20
neighbouring Ukraine.
"Property prices are cheaper here than in most of the neighbouring=20
countries - I can sell Budapest residential from 1,350 to 1,800 a sq m =
(32=20
to 167 per sq ft), whereas Sofia (Bulgaria) is 2,000 a sq m (185 per sq =
ft),=20
Ukraine is about 4,000 a sq m (371 per sq ft, payable in dollars) and=20
Krakow has gone very expensive at 5,500 a sq m (510 per sq ft)."
Lisney is holding a property exhibition on Zala Springs in the Westbury=20 Hotel, Dublin, this Friday and Saturday, February 9th and 10th.
NOTE: Send in a letter-to-the-editor today. Let us hear from you.
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8. UKRAINE MOP MANUFACTURER LOOKING FOR PARTNERS
LINCOLNWOOD, Illinois - ISSA member AVS MOP, a mop and related
products manufacturer in Ukraine, has begun exporting its products to
countries outside Ukraine and is looking for European partners, =
according
to AVS MOP's Andrey Sukhoruchkin.
AVS MOP joined ISSA in 2006. Later that year, the company attended an
exhibition in Moscow, where it secured several contracts and determined =
it
was time to expand beyond Ukraine.
For more information, contact Andrey Sukhoruchkin, Kiev, Ukraine +380 50-462-62-78; e-mail, clin2006@ukr.net. -30-
COMMENTARY AND ANALYSIS: By Valentin Zelenyuk Kyiv Post, Kyiv, Ukraine, Thursday, Feb 08 2007
A year ago, virtually everyone gave a very pessimistic forecast for =
Ukraine's=20
economic prospects in 2006-especially due to the drastic increase in the =
Nevertheless, Ukraine gave another surprise by finishing this difficult =
year=20
with one of the highest rates of economic growth in the world-about 7=20
percent growth in real GDP and about 20 percent GDP growth when valued =
in=20
USD. One might get an impression that Ukraine is doing very well. This, =
Indeed, even now, note that Ukraine's real GDP in 2006 is still under 65 =
Moreover, according to the World Bank 2006 report, the gross national =
income=20
per capita in Ukraine is only $1,520 - this is less than in Morocco=20
($1,730), Guatemala ($2,400), Albania ($2,580), Algeria ($2,730), =
Namibia=20
($2,990) and in many other developing countries!
Such a dismally poor performance can be hardly believed-given the fact =
that=20
the Ukrainian population has a relatively high level of education =
enabling=20
them to produce big airplanes, satellites and space rockets - a =
potential=20
that a majority of countries in the world lack.
What are the main reasons for such a shameful economic performance? To=20
give a brief answer, the main problem is rooted in the lack of reforms =
that=20
could liberalize the economy in Ukraine.
Indeed, since obtaining independence in 1991 and up until now, Ukraine =
has=20
been lagging behind other transitional and developing countries in terms =
of=20
implimentation of economic reforms, and has been characterized as a=20
repressed and mostly unfree economy (e.g., see indexes of economic=20
freedom by the Cato Institute and by the Heritage Foundation).
So, lagging behind in reforms has made Ukraine lag behind in terms of=20 wealth per capita as well.
The main reform that is urgently needed now is the tax reform. It is =
worth=20
noting that up until 1998, the tax burden in Ukraine was one of the =
highest=20
among all countries in the world.
These two steps helped Ukraine move away from its deep economic fall and =
Ukraine's corporate taxes, however, remain excessively burdensome in=20
Ukraine, making it less attractive than most countries in the world. =
Indeed,=20
according to various cross-country world ratings, the rank of Ukraine on =
the=20
ease of tax burden is astonishingly bad.
For example, according to a very comprehensive World Bank survey 'Doing=20
Business - 2007,' based on 10 major criteria crucial for a business, =
Ukraine=20
was ranked 174 out of 175 countries! In the 2006 version of this report, =
Ukraine was ranked 151 out of 155 - only better than Belarus and three=20 African countries, while now only Belarus is behind Ukraine.
The most recent estimates of the World Bank survey suggest that an =
average=20
firm in Ukraine has to pay about 60.3 percent of their gross profit in=20
various taxes. By all standards, the current taxation burden on =
businesses=20
in Ukraine is prohibitively high for a country that desperately needs=20
economic recovery.
More specifically, every country that achieved an economic miracle =
(e.g.,=20
Hong Kong, Singapore, South Korea, Taiwan, Ireland, Estonia, etc.) had =
low=20
taxes and liberalized markets. On the other hand, those countries that =
had=20
excessive taxation and excessive government bureaucracy (Armenia, =
Moldova,=20
North Korea, Uzbekistan, Ukraine, etc.) had economic disasters.
Many people, certainly including myself, hoped that after the Orange=20 Revolution the necessary economic reforms in Ukraine would follow=20 immediately. About two years have past but, regrettably, not much has=20 changed since then, mainly because the politicians in power were busy=20 re-electing themselves.
So, what exactly needs to be done? First and most important of all, the=20
profit tax for all firms must be reduced substantially. Indeed, it is =
the=20
excessive tax bureaucracy that creates most of the problems for the=20
Ukrainian business environment.
For example, according to the mentioned survey of the World Bank, an =
average=20
Ukrainian firm must make about 98 payments, spending about 2,185 hours =
to=20
comply with tax requirements - which is much more than in most countries =
in=20
the world.
Such bureaucracy substantially reduces the attractiveness of Ukraine for =
new=20
foreign investors, slows down existing businesses and pushes many =
businesses=20
away to other countries or into the shadow economy.
(A noteworthy factor, by various estimates, is that the shadow economy =
in=20
Ukraine is about 50 percent of its official GDP and a big portion of it =
is=20
due to a very excessive tax burden.)
Moreover, a substantial part of the shadow economy can come to the =
light.=20
As a result, economic growth in the official real GDP in Ukraine can =
easily=20
reach 10-15 percent annually for the next three to five years, with a =
decent=20
economic performance afterward.
If such reforms are implemented, they could create the true economic=20 miracle for Ukraine that we have been awaiting for the last 15 years. = -30-
security the minister of economy must have necessary tools, he added.
OF AGRICULTURAL MACHINERY IN UKRAINE=20
By Dmytro Kuzmin, Ukrainian News Agency Kyiv, Ukraine, Friday, February 2, 2007
KYIV - One of the world's largest producers of agricultural machinery,=20
the Case-New Holland company (CNH, the Netherlands) suggests the=20
Ukrahrolizynh national joint-stock leasing company to organize =
production=20
of the New Holland's agricultural machinery in Ukraine. The press =
service=20
of Ukrahrolizynh announced this in a statement.
As to the press service, Ukrahrolizynh is negotiating the world's major=20 producers of agricultural machinery with an aim of developing financial=20 programs for procurement of machinery, that is not produced in Ukraine.
According to the press service, CNH proposes three stages of=20
cooperation:
[1] The first one - shipping machinery to Ukraine for demand=20
analysis,=20
[2] the second - organization of joint production and=20
[3] the third - localization of products at up to 50% of Ukrainian=20
components.=20
As Ukrainian News earlier reported, the Cabinet of Ministers founded the =
Ukrahrolizynh company in May 1999 to lease agricultural equipment to=20
agricultural enterprises instead of the State Leasing Fund. =
Ukrahrolizynh=20
ended 2004 with a net profit of UAH 0.2 million from net revenues of=20
UAH 37 million. -30-
List of members has not been approved
By Natalya Nepryakhina, The Kommersant-Ukraine Kyiv, Ukraine, Friday, February 02, 2007
KYIV - The Kommersant-Ukraine laid its hands on a draft government resolution to set up the Council of Investors, COI, under the cabinet of ministers and to be headed by the premier [Prime Minister Viktor Yanukovych]. The draft had already been approved by the government committee on economic policy.
Government officials who had worked out the draft, could not clarify to =
The
K-U the criteria for selecting COI members who can be qualified as
investors.
ORIGINAL LIST OF 15-20 INVESTORS AND ORGANIZATIONS
The president of the State Agency for Investments and Innovations (SAII)
Viktor Ivchenko told The K-U that the original list made up of 15-20
Ukrainian and Russian investors, including, by the way, the co-owner of =
the
Industrial Union of Donbas, ISD, Serhy Taruta, the owner of Interpipe =
Viktor
Pinchuk and representatives of the European Business Association and the =
US
Chamber of Trade and Industry, was not approved by the government.
UKRAINIAN BUSINESS, FOREIGN INVESTORS & EXPERTS
Our source in the economy ministry has specified that the list will =
include
representatives of Ukrainian business, foreign investors, and experts.
Notably, the Consultative Council on Foreign Investments created in 2005
under the president of Ukraine was made up only of foreign investors.
"We are for a two-way street in the relationship of business and =
government
in order to solve the existing problems," the source told The K-U.
Meanwhile, another source in the Ukrainian Center for Promoting Foreign
Investments forecast that COI may become an alternative to the =
presidential
council.
Thus, Head of the Association of Jewelers of Ukraine Dmytro Vydolob says
these government insiders will only lobby for their interests: "I don't =
see
that the government is interested to promote competitiveness, and most
probably, COI will be made up of Ukrainian businessmen who will resolve
their own problems with cabinet assistance." -30-
Send in a letter-to-the-editor today. Let us hear from you. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D
13. YANUKOVYCH TO BECOME HIS OWN ADVISOR
Cabinet of Ministers created Council of Investors (COI) Advisory =
Body
By Antonina Bazhan, The Ekonomichna Pravda internet newsletter Business and economy by Ukrayinska Pravda,=20 Kyiv, Ukraine, Thursday, Feb. 1, 2007
Premier Yanukovych continues to build the pyramid of his power. This =
time,
he set up an office that makes him chieftain of Ukrainian investors. On =
Jan.
24, 2007, the cabinet created an advisory body, the Council of Investors
(COI) affiliated with the Cabinet of Ministers.
In all probability, COI is to become a close-knit team of moneybags =
loyal to
the government. The council will be headed - guess by whom? - by V.
Yanukovych.
REINVENTING THE WHEEL According to The Ekonomichna pravda, the Yanukovych government, acting quickly and without any notice, liquidated the Council of Entrepreneurs (COE) set up by Pres Kuchma back in the 90s and.
Accusations of the low representative level of COE were definitely made against Yulia Tymoshenko who, when premier, enrolled mainly small and medium-sized businessmen to sit on COE, unlike former Pres. Kuchma who favored tycoons.
Under the circumstances, it was unclear then what the government motives =
for
scrapping the 10-year old COE had been. To have his way, it was =
sufficient
for the premier either to enroll new members who would suit him or to
restore the format COE had in Kuchma days, a club for Ukrainian =
moneybags
like Rinat Akhmetov and Viktor Pinchuk.
However, all these arguments can be logical only in a democracy. Given =
the
Ukrainian realities, a council of businessmen with its declared opaque =
and
docile format may well be turned into a cash cow for the incumbent head =
of
the cabinet. This club of business insiders may well become a base for =
the
premier's economic self-sufficiency.
Much will depend on who Viktor Yanukovych could enroll to sit on COI and
what kind of quid pro quos he could offer to his potential sponsors. =
-30-
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FOOTNOTE: Article translated into English by Volodymyr Hrytsutenko.
ANALYSIS & COMMENTARY: Gary Reusche & Stephan Vitvitsky Kyiv Post Kyiv, Ukraine, Thursday, February 08 2007
The question of a land market in Ukraine has yet to make the transition =
from
the Soviet past. Under the Soviet Union, private property was illegal.
After 15 years of independence, land reform in Ukraine is still =
unfulfilled.
At stake is perhaps the best agricultural land in Europe, and its =
current
owners are the poor and mostly neglected rural inhabitants.
The roots of the current situation are in the Soviet era and are =
directly
related to the Holodomor, or Great Famine. During the reorganization of
rural Ukraine by the Soviets, residents were uprooted, and during the =
famine
their population was decimated. In their place were established =
collective
farms.
These collective farms are now history, with the exception that the
inheritors of the collective farms have ownership of the land, but not =
the
right to sell it. Roughly 7 million rural Ukrainians have, or will soon
have, land acts for approximately 25 million hectares of the best =
farmland
in Ukraine (and in Europe).
As discussed by agricultural expert Andriy Yarmark in a recent interview =
in
the Kyiv Post, a well-functioning land market also encourages investment =
and
increases revenue through land sales, which helps create jobs and =
enhance
rural livelihood.
The Ukrainian parliament's recent prolongation of the land moratorium =
shows
again the government's reluctance to complete its market economy =
transition
(though only the most naive will think that this situation is not =
benefiting
someone).
Although Ukraine needs an open land market now, it must be implemented =
in a
context of programs designed to assist the rural population to make the
transition, and encourage small business development.
If Ukraine is to create a land market, the government must make sure =
that it
is done legally, transparently, and most importantly, for the good of =
the
more than 15 million people living in rural areas.
Extreme poverty rates are highest in rural areas, with roughly one-third
living under a dollar a day. Simply creating a land market without =
certain
conditions in place will not necessarily improve the lives of Ukraine's
poorest residents.
Rural areas are currently vastly underserved by Ukraine's credit market. Although many major banks, such as PrivatBank, Raiffeisen Bank Aval, and ProCredit Bank, now offer small and micro-loan products, they primarily focus on urban areas. Agricultural loan products also are limited in = their scope.
According to statistics from the Ukraine Micro-Lending Program, an
EBRD-sponsored program that helps banks create micro-loan products, as =
of
mid-2006 only roughly 4,000 agricultural loans have been disbursed worth =
$20
million.
Various donor aid agencies, including the EU, USAID, and the World Bank,
have also tried to build up the credit cooperative system, known in =
Ukraine
as credit unions and cooperative banks.
These are not encouraging signs for potential landowners. Therefore, =
banks,
NGOs, and credit unions should be encouraged to extend credit in small =
towns
and rural areas, helping fill a major void in Ukraine's credit market.
Transactions would be made very slowly, disputes would be settled =
through
bribes and threats, and individuals would easily disobey the law. This =
state
would be devastating for rural areas and would further encourage =
corruption,
already a major problem in Ukraine.
Unfortunately, there is no quick and easy solution that can solve the
current land dilemma. It is high time that the government, along with =
NGOs
and development agencies, took steps to ensure that institutions and =
courts
are functional and transparent; as well as ready to handle the huge =
workload
once a land market is established. -30-
ANALYSIS & COMMENTARY: By Oleksandr Shepotylo
The Ukrainian Observer magazine #228
The Willard Group, Kyiv, Ukraine, February 2007
Recently, a friend of mine was crossing the Russian-Ukrainian border by
train. The customs officer knocked at the door of his carriage =
compartment
and asked for his documents. After careful examination, the officer said
that the registration had expired and my friend was not allowed to cross =
the
border.
Shortly, the friend came back with the stamp in the passport that =
allowed
him to cross the border. This example illustrates a more general point =
that
the rules are not strictly enforced in a country with a high level of
corruption such as Ukraine.
The vicious circle is very hard to break because it has become ingrained =
in
the Ukrainian culture and governs people's cultural code of behavior.
Adjusting numbers for the cost of living, Ukraine came in the second place - not far behind Ghana - in annual bribes paid by households=20 according to the results of a public opinion survey of about 55,000 people in 69 countries.=20
HOW COSTLY IS CORRUPTION How costly is corruption for the welfare of a country? Oddly enough, the mere fact of bribery has no direct impact on a country's gross domestic product (GDP).
Paolo Mauro - one of the first economists who empirically studied the
consequences of corruption - demonstrated that corruption reduces =
economic
growth in a country by 0.5-1 percent a year on average. For Ukraine, =
This
sum is comparable with the annual budget spent on education in Ukraine.
A corrupt government official would prefer to finance a big investment
project with very uncertain costs where it is difficult to monitor
expenditures - i.e. build a highway or an airport - rather then give =
money
for educational programs that are more transparent and easier to =
control.
CORRUPTION PERCEPTION INDEX
In 2006, Ukraine - together with the Dominican Republic, Georgia, Mali,
Mongolia, and Mozambique - occupied places 99 in the annual report on =
the
corruption perception index provided by Transparency International.
The problem of high corruption in Ukraine is well recognized by all =
parts=20
of the political spectrum. Party leaders of the ruling coalition and the
opposition publicly announced that fighting corruption should be a =
priority
in the government agenda.
On December 5, 2006, the Government of Ukraine and Millennium Challenge
Corporation - a U.S. program that seeks to reduce poverty by rewarding
countries for establishing open markets and following other good =
governance
practices - signed an agreement estimated at US $500 million as the
threshold program for development of Ukraine that would be partially =
spent
to finance an anti-corruption campaign as a part of the threshold =
program
for Ukraine.
Prime Minister Viktor Yanukovych publicly stated that figure following a meeting with US Secretary of State Condoleezza Rice. "The program will envisage actively combating corruption, which will be a priority of the current Government," Yanukovych said.
BEST WAY TO REDUCE CORRUPTION? At the same time, Ukrainian politicians are very much divided on the question of the best way to reduce corruption.
It was very clearly demonstrated during the "Svoboda Slova", a popular =
TV
show where the top government officials, parliamentarians, and experts
discuss important political and economic topics in front of a large
audience. The program was devoted to discussion on corruption in Ukraine
and was aired in December 2006.
Therefore, the administrative reform that gives more budgetary =
expenditures
to be divided at the local level suggested by the Socialist Party could =
be
beneficial for Ukraine because it would spur political competition =
between
local governments, improve their performance and lower corruption.
It is difficult to find the best anti-corruption roadmap for in Ukraine.
However, the establishment of a strategy for this purpose should not be
decided in a narrow circle of government officials or the ruling =
coalition's
leaders.
And if, on a wonderful day, people in power and the army of state
bureaucrats start behaving as role models for us by strictly following =
all
rules and regulations they have created for ordinary people, we would =
become
better citizens and stop cutting lines, violating traffic rules, and =
bribing
officials in an attempt to solve our everyday problems. -30-
Ukrainian News Agency, Kyiv, Ukraine, Thu, February 1, 2007
KYIV - One of the largest steel producers in the United States, Nucor=20
corporation has started purchase of pig iron from Makiivka-based=20
metallurgical plant (Donetsk region). Plant press service has disclosed =
this=20
to Ukrainian News.
According to press service representative, in February, Makiivka plant =
has=20
to supply 65,000 tons of pig iron to the American corporation. As =
Ukrainian=20
News earlier reported, in September 2006, Makiivka plant reported on =
Nucor=20
intention to purchase pig iron.
Russian businessman Vadim Novinsky's Smart Group (Dnipropetrovsk) =
controls=20
Makiivka metallurgical plant. 60.857% of the shares in the Makiivka=20
metallurgical mill belong to the State Property Fund of Ukraine
Acquires over 50% of Styrol chemical concern (Horlivka, Donetsk = region)
Ukrainian News Agency, Kyiv, Ukraine, Friday, February 2, 2007=20
KYIV - The Antimonopoly Committee of Ukraine has authorized Dotterbloem=20
Holding B.V. (the Netherlands) to acquire over 50% of the shares in the=20
Styrol chemical concern (Horlivka, Donetsk region). The press service of =
the=20
Antimonopoly Committee announced this to Ukrainian News.
Dotterbloem Holding B.V. performs investment and management operations.=20 It has never operated on Ukrainian territory. The company submitted the=20 relevant application to the Antimonopoly Committee on December 18.
According to the information available as of January, the =
Styrolkhiminvest=20
limited liability company owned 50.01% of the shares in Styrol while=20
individuals owed 14.19%. As Ukrainian News earlier reported, Styrol =
intends=20
to invest USD 50-80 million in production development in 2007.
You are welcome to send us names for the AUR distribution list.
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=3D=3D=3D=3D=3D=3D
18. USAID REALIZING TWO-YEAR $8M PROJECT TO DEVELOP
TRADE, INVESTMENT AND BUSINESS IN UKRAINE
Interfax Ukraine Economic, Kyiv, Ukraine, Wed, January 31, 2007
KYIV - The United States Agency for International Development (USAID)=20
has presented a project on trade, investment and business acceleration =
in=20
Ukraine (TIBA). According to a press release drawn up for the =
presentation,=20
the budget of the two-year project will be $8 million.
The project is aimed at providing technical aid to the Ukrainian =
government=20
and the private sector in building trade, investment and business =
capacity,=20
which is, in turn, would accelerate Ukraine's joining the international=20
economy.
reform aimed at building a favorable legal and business environment to=20 develop small and medium business in Ukraine.
that it would promote the development of private business in Ukraine.
Pressley said that the USAID project would promote further aid for =
Ukraine's=20
joining the World Trade Organization, promote aid to government =
institutions=20
after Ukraine joins the organization, and promote aid to improve the=20
environment for the development of business.
In turn, Hennadiy Bilous, the deputy head of the state committee for=20
regulatory policy and entrepreneurship of Ukraine, said that the =
two-year=20
project would improve the investment climate in Ukraine and the =
situation in=20
the trade sphere.
He said that the Ukrainian government is improving regulatory policy in=20
entrepreneurship, the permit system and the registration of procedures, =
and=20
is relaxing requirements when starting a business.
Earl Gast, Director for the USAID Regional Mission in Ukraine, Moldova =
and=20
Belarus, said that the new USAID project would build on the achievements =
of=20
the previous USAID BIZPRO project.
Commenting on the investment climate in Ukraine, Gast said that a =
gradual=20
improvement over all the years of Ukraine's independence has been seen.
Gast said that an increase in foreign investment in Ukraine and interest =
not=20
only from U.S. but also European investors confirms this improvement. In =
particular, he said that there is investment growth in Ukraine from =
Eastern=20
Europe, especially Poland, the Czech Republic and Baltic countries.
UKRAINE IN 10 DAYS; EXPECTS FURTHER INVESTMENTS
Interfax Ukraine Economic, Kyiv, Ukraine, Thursday, February 1, 2007
Ukraine within ten days and will consider expanding manufacturing =
facilities=20
in that country, Chief Executive Dariusz Manko told reporters Thursday. =
"In=20
Ukraine, production starts in ten days," Manko said.
Kety said in early 2006 it would spend PLN 40 million on the =
installation of=20
an extruded-products press in Ukraine and Manko expects further =
investments=20
in the underserved Ukrainian market.
"We have a large order-book [in Ukraine], the market is very receptive," =
the=20
CEO said. "That is why investments in just one press is unlikely to be =
the=20
extent of it." -30-
IN KHERSON DAIRY PLANT CJSC RODYCH
Interfax Ukraine Economic, Kherson, Ukraine, Friday, January 26, 2007
The sum was discussed ruing a meeting between Kherson Mayor Volodymyr Saldo and Director General of Danone Ltd. for Ukraine Stephan Batoux.
As was reported earlier, on September 7, 2006, Danone, which has been=20 working on the Ukrainian market since 1999, announced the acquisition of =
100% of CJSC Rodych dairy plant in Ukraine. The deal was completed on=20 October 2, 2006.
Danone also announced plans for 2007 to start the modernization of the=20
plant's production facilities and increase dairy production from 30,000 =
to=20
200,000 tonnes a year within 10 years. -30-
Please contact us if you no longer wish to receive the AUR =20
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D
21. AUSTRIA'S MEINL LAND LTD TO MAKE FIRST INVESTMENT IN
UKRAINE WITH EUR 150 MILLION IN TRADE CENTER IN ODESA
Interfax Ukraine Economic, Kyiv, Ukraine, Sunday, January 25, 2007
KYIV - Austria's Meinl European Land Ltd. developing company plans to=20
invest around EUR 150 million in building a trade center in Odesa, =
according=20
to a company press release.
According to the release, Meinl European Land Ltd. at present does not
invest in Ukraine, although the company is consulting with local =
developers
and researching possible future investments.
Meinl European Land Ltd. operates in the real estate sphere and invests =
and
develops real estate in various countries. At present, the company plans =
to
develop in the Czech Republic, Hungary, Latvia, Estonia, Poland, =
Romania,
Russia, Slovakia, Turkey, Bulgaria and Ukraine.
As of September 30, 2006, the company's investment portfolio was EUR=20
1.233 billion, which included 150 projects in seven countries with =
revenues=20
from leasing of around EUR 105 million. -30-
Will employ 1,200 workers in Volinskiy Region
Interfax-Ukraine, Kyiv, Ukraine, Wednesday, Jan 24, 2007
LUTSK - Swiss food giant Nestle plans to invest over $50 million in =
building
a new food plant in Ukraine's Volinskiy region. The company signed the=20
relevant investment agreement on Tuesday, the press center of the =
Volinskiy
regional council said.
Nestle Ukraine was set up in 1994 and in 1998 acquired a controlling =
stake
in the confectionery company Svitoch, and in November 2003 - 100% of
Volynholding, which operates under the trade name Torchinproduct. rd
MAJOR BOOM IN EXPORTS TO RUSSIA AND UKRAINE IN 2007
"One of our main goals of our three-year strategy is to increase exports =
in
the CEE region," Santa said. "We also expect a major boom in exports to
Russia and Ukraine in 2007."
The company also operates one of the largest chocolate mass making units =
in
the CEE region in its Budapest factory, which makes Bonbonetti the most
important player on the domestic market of intermediary products, =
supplying
the Netherlands' Friesland and France's Danone, Santa said. -30-
MINI-PLANT IN ODESA REGION BY FEBRUARY
Interfax Ukraine Economic, Kyiv, Ukraine, Friday, January 26, 2007
As raw materials, Biodiesel of Bessarabia will use rapeseed crops grown =
in
Saratsky region, which expanded areas under crops in 2006 by four times =
to
12,000 ha. -30-
MAKER SIKORSKY AIRCRAFT CORPORATION
KYIV - Ukrainian President Viktor Yushchenko and Sergei Sikorsky=20 discussed cooperation between Ukrainian aircraft manufacturing firms=20 and Sikorsky Aircraft Corporation. Sergei Sikorsky, a son of the worldrenowned inventor and designer, is a cofounder of Sikorsky Aircraft=20 Corporation.
Yushchenko said at the meeting that the powerful technological and
industrial potential of Ukrainian aircraft manufacturing companies could
serve as a good foundation for the Sikorsky Aircraft Corporation's =
activity
in Ukraine, the presidential press service said on Thursday [18 =
January].
Yushchenko also confirmed his position regarding the need to open a
museum for Igor Sikorsky in Kiev. Igor Sikorsky was born in Kiev in =
1889.=20
He emigrated to the US in 1919, where he founded the Sikorsky Aero=20
Engineering Corporation in 1929. -30-
ANALYSIS & COMMENTARY: By Volodymyr Senchenko The Ukrainian Observer magazine, Issue 227 The Willard Group, Kyiv, Ukraine, January 2007
Foreigners are surprised when a Ukrainian newscaster tells viewers at =
the
end of his program: "Respect yourself, you deserve it."
Based on their own life experience, foreigners may think self-esteem is
innate and therefore Ukrainians do not need to be daily reminded that =
they
should respect themselves.
However, such a phrase is quite useful to Ukrainians. For our =
inferiority
complex, which makes us feel second-rate, petty and unimportant, is
programmed and has penetrated our outlooks and minds so deeply that=20
almost every individual Ukrainian has this ugly, shameful trait.
Average Ukrainian citizens have to suppress their indecisiveness before attracting attention.
Foreigners often notice this characteristic behavior at customs. =
Ukrainians
act humbly and show fearful respect towards uniformed strangers simply
performing their professional duties. They act as if they conceal =
something
or are guilty and so want to appear better and more modest than they =
are.
Foreigners also become bemused when Ukrainian journalists or officials =
ask
them for advice on how to act in this or that situation. Once my friend
complained to me that a foreign doctor who he asked for advice replied =
that
he himself had come to Ukraine to study the experience of Ukrainian
colleagues.
Unfortunately, there are still many people in Ukraine that think foreign
products are better, more advanced and more perfect. They are not =
guilty,
however, for they could not compare things when living behind the Iron
Curtain.
The opening of the Soviet borders blinded many Ukrainians with bright
labels, neon signs and exquisite designs. The younger generation, =
especially
pop stars, tried to derive advantages from their inferior fondness for
foreign things.
This makes foreigners believe the inferiority complex is innate in Ukrainians, which is, in fact, not true because people are born with no complexes, their behavior later being sculpted by life circumstances, education and environment. No doubt, if this environment is poor and squalid, as it is in India's caste society, it will produce certain stereotypes.
This trait is mirrored in the Russian simile, "as stubborn as =
Ukrainians."
However, doing what one believes should be done contributed to the
reputation of Ukrainians who are now good business people.
This trait somehow overshadows and muffles our lasting, aggressive and
tragic struggle for dignity. Oppressed, Ukrainians always revolted, and
there are many pages in our history showing how valorously we fought for
centuries to defend ourselves.
OBSTINATE UKRAINIANS OPPRESSED AND PRESSURED
Not only were "obstinate Ukrainians" oppressed and pressured but also =
they
were also encouraged to obey government and comply with unnatural =
commands
they were reluctant to follow.
The local elite was offered privileges and gifts in exchange for =
loyalty.
All governments ruling Ukraine did such things: Austro-Hungary, Russia, =
and
Poland. The country's leaders were given titles, lands and other =
valuables.
Our foreign rulers also tried to assimilate Ukrainians by forcing them =
to
adopt Catholicism and materially urging them to speak other languages. =
We
were not allowed to study, sing and write in Ukrainian but still sang =
our
songs without words.
That must have been done to prevent Ukrainians from looking to their =
roots,
as other Europeans do, to prove they are older than their "elder Russian
brothers."
RUSSIANS LOVED DEMONIZING UKRAINE'S HEROES
Russians also loved demonizing Ukraine's national heroes and sometimes
exterminated them physically. The names of Mazepa, Petlyara, Makhno and
Bendera were not uttered without the prefix "bandit." These names were =
used
to frighten and intimidate people.
Sometimes government ignored national priorities if a Ukrainian made =
some
invention. Such was the case with an apple variety cultivated by =
Symyrenko.
Over the years of independence, Ukrainians have been gradually =
overcoming
their inferiority complex. They revived the names of their prominent
personalities.
I remember being stunned to learn about the famous Ukrainian ballet =
master
Serge Lyfar, performing in Paris's Grande Opera, or about constructors =
of
space devices, or that constructor Glushko was among those who developed
and built the Katyusha multiple rocket launcher.
It is too early to claim we remember all our names. Many pages and names =
of
our history were torn off, deleted or misinterpreted. We still need much
time and effort to re-establish Ukraine as a historical nation.
Foreign researchers helped us see we are intelligent, educated and
industrious. That is, no doubt, a great result. At the same time, when =
being
compared with Americans and Europeans, Ukrainians see their actual
imperfections.
We have already recovered from the first shock and surprise from the
lustrous design of those devices, and that comparison has ruined the =
myth of
foreign superiority, although we thought only our military equipment was
equal to theirs. We now often see signs in shops declaring that a =
product is
produced in Ukraine and in accordance with the EU standards.
ORANGE REVOLUTION SEMINAL EVENT IN NATION'S REVIVAL
However, the greatest events that radically influenced us were the
Independence Square demonstrations of 2004, generally referred to as the
Orange Revolution. In fact, it was not a revolution at all. This became
obvious when its leaders gained power and betrayed their slogans.
It is clear that the 2004 events will be inspiring Ukrainians for =
decades.
The Maidan spirit and values will be passed on from one generation to
another.
To progress to that time, we must often tell Ukrainians: "Respect =
yourself,
you deserve it." -30-
ANALYSIS & COMMENTARY: Elisabeth Sewall, Assistant Editor Kyiv Post, Kyiv, Ukraine, Thursday, February 08 2007
A medieval Kyiv church decorated with priceless murals is at the center =
of
an escalating dispute between museum administrators and a local church
subordinate to the Moscow Patriarchate.
For the last decade or so, the 12th century Church of St. Cyril of Alexandria has been functioning as both a place of worship under the administration of the Ukrainian Orthodox Church Moscow Patriarchate (UOCMP) and as a state historical museum open to visitors.
According to a report issued last October by the National Research
Restoration Center of Ukraine, St. Cyril's fragile artworks, dating back =
to
Kyivan Rus years, need a proper microclimate to survive.
Regulation of the monument falls under the jurisdiction of the Ministry =
of
Construction, Housing and Communal Services of Ukraine. But American and
Canadian preservationists have recently begun writing petitions asking =
the
Ukrainian government to stop the UOCMP from using St. Cyril's.
Pevny said the sole purpose of the campaign is to make sure that =
Ukraine's
cultural heritage is protected for prosperity. "The issue I am raising =
is not=20
whether there are qualified and earnest individuals in the church versus =
the=20
museums."
"What I am saying is that in all of Ukraine there survives only one 12th-century monument with frescoes. It is the second most important medieval monument in all of Ukraine after the St. Sofia Cathedral. The Church of St. Cyril should be designated a historical-cultural landmark belonging to all the Ukrainian people," she said.
The Cabinet of Ministers of Ukraine recently removed 300 monuments from the protective list of historical-cultural sites, allowing them to be considered for "re-appropriation" and permanent Church use.
Pevny suspects that St. Cyril's could be on this list. -30-
THE ART OF FRESCO PAINTING IN UKRAINE
Internet Encyclopedia of Ukraine (IEU) Newsletter Dr. Marko R. Stech, Managing Director, CIUS Press Project Manager, Internet Encyclopedia of Ukraine Toronto, Ontario, Canada, February 2007
BECAUSE OF THE CURRENT CONTROVERSY REGARDING THE FATE OF THE FRESCOES OF SAINT CYRIL'S CHURCH IN KYIV,
INTERNET ENCYCLOPEDIA OF UKRAINE FEATURES: THE ART OF FRESCO PAINTING IN UKRAINE (February 2007)
In the Kyivan Rus' the fresco was the principal method of decorating =
church
interiors. While Byzantine-style mosaics were limited to the central =
part
of a church, frescoes covered all the side apses, vaults, columns and =
walls
of the side naves, and sometimes even the arch supports, galleries, =
niches,
and external portals. In Byzantium, mosaics were never mixed with =
frescoes
in the same building; this is a unique practice of Ukrainian church art.
Harmony between mosaic and fresco was achieved by using the same dominant colors. The most famous examples of this decorative system are Saint Sophia Cathedral (1037) and the Cathedral of Saint Michael's Golden-Domed Monastery (mid-12th century) in Kyiv.
After the middle of the 12th century frescoes almost completely replaced
mosaics in the decoration of church interiors. The most complete set of
frescoes from this period has been preserved in the church of Saint =
Cyril's
Monastery in Kyiv.
Learn more about the art of fresco painting in Ukraine by visiting: http://www.encyclopediaofukraine.com/featuredentry.asp or by visiting: http://www.encyclopediaofukraine.com and searching for such entries as:
FRESCO PAINTING. A method of painting on freshly plastered walls with
powdered pigments that are resistant to the erosive action of lime. =
Before
the colors are applied to the wet plaster the main lines of the =
composition
are usually traced on the preceding coat. The painting is very durable =
and
is applied to both interior and exterior walls. The origins of fresco
painting in Ukraine can be traced back to the 4th century BC.
SAINT SOPHIA CATHEDRAL. Saint Sophia Cathedral is a masterpiece of
the art and architecture of Ukraine and Europe. It was built in Kyiv at =
the
height of Kyivan Rus', in the Byzantine style, and significantly =
transformed
during the baroque period. The cathedral was founded by Grand Prince
Yaroslav the Wise and built between 1037 and 1044.
SAINT MICHAEL'S GOLDEN-DOMED MONASTERY. An Orthodox men's monastery in Kyiv. In the 1050s Prince Iziaslav Yaroslavych built Saint Demetrius's Monastery and Church in the old upper city of Kyiv, near Saint Sophia Cathedral.
Written records confirm that it was reopened by 1496. Soon afterward it
began to be known as Saint Michael's Golden-Domed Monastery, its name
being taken from the church built by Sviatopolk II Iziaslavych. Restored =
and
enlarged over the 16th century, it became one of the most popular and
wealthy monasteries in Ukraine. ...
SAINT CYRIL'S MONASTERY. A monastery founded by Grand Prince
Vsevolod Olhovych ca 1140 on the outskirts of medieval Kyiv. Its church,
Saint Cyril's, was built ca 1146. The church's frescoes are fine =
examples of
12th-century Ukrainian art and the influence of Bulgarian-Byzantine
painting on it.
Murals of saints-Saint Cyril and Saint Methodius, Saint John the =
Macedonian,
Saint Euphemios-adorn its pillars, and compositions depicting Saint =
Cyril
teaching the heretic, teaching in the cathedral, and teaching the =
emperor
are found in the southern apse. -30-
ABOUT IEU: Once completed, the Internet Encyclopedia of Ukraine will be
the most comprehensive source of information in English on Ukraine, its
history, people, geography, society, economy, and cultural heritage. =
With
over 20,000 detailed encyclopedic entries supplemented with thousands of
maps, photographs, illustrations, tables, and other graphic and/or audio
materials, this immense repository of knowledge is designed to present
Ukraine and Ukrainians to the world.
At present, only 11% of the entire planned IEU database is available on =
the
IEU site. New entries are being edited, updated, and added daily. =
However,
the successful completion of this ambitious and costly project will be
possible only with the financial aid of the IEU supporters. Become the =
IEU
supporter and help the CIUS in creating the world's most authoritative
electronic information resource about Ukraine and Ukrainians!
Sunday, February 11, 2007
Action Ukraine Report (AUR) #813, Article 29 Washington, D.C., Friday, February 9, 2006
WASHINGTON - The Kyiv Mohyla Foundation will host fundraiser in=20
the Washington/Baltimore area for a premier Ukrainian university.
=20
WHAT: Kyiv Mohyla Academy Fundraiser & Awareness Event/Dinner
WHEN: Sunday, February 11, 1:00 pm
WHERE: St. Andrews Ukrainian Orthodox Cultural Center
15100 New Hampshire Ave., Silver Spring, MD 20905=20
=20
Please make reservations prior to the event by calling:=20
301-593-5316 (Valentyn Zabijaka); or 301-873-2035 (Andriy Bihun);=20
or 773-685-1828 (Marta Farion)
GENEALOGICAL RESEARCH=20
RE: John D. Pihach, Ukrainian Genealogy: A Beginner's Guide CIUS Pres, 272 pp., $54.95 (cloth). $34.95 (paper)
John D. Pihach's Ukrainian Genealogy is a guide to tracing one's =
Ukrainian=20
ancestry in Europe. Consideration is also given to North American =
records=20
that are specifically Ukrainian or relate to the immigrant experience.
Because the overwhelming majority of people of Ukrainian origin in =
Canada=20
and the United States have roots in western Ukraine or southeastern =
Poland,=20
the guide concentrates on the resources of those regions.
This handbook is intended primarily for those whose ethnic roots are=20
Ukrainian, although some of the material in it may be useful to other =
groups=20
with roots in Ukraine.
Chapters 1 and 2 discuss general topics that are preliminary to =
research.=20
Personal names are examined in chapter 3. Chapters 4 and 5 outline the =
early=20
religious experiences of Ukrainians in North America and the church =
records=20
that are available. Chapter 6 addresses the crucial question of =
determining=20
the name of the European ancestral community.
Several appendixes describe Ukrainian transliteration schemes and =
present a=20
key to the scripts of the languages that were used in record keeping;=20
provide a starting point for research by other ethnic groups with roots =
in=20
Ukraine; and list useful Web sites.
Orders can be placed online at:
http://www.utoronto.ca/cius/publications/books/ukrainiangenealogy.htm
and by: e-mail: cius@ualberta.ca; telephone: (780) 492-2973 between=20
8:30 am and 4:30 pm (MST). fax: (780) 492-4967.
SPECIAL OFFER: MORE FOR LESS (valid only through Web site)
Buy the paperback edition of this book together with Ukrainians in =
Canada:=20
The Formative Years, 1891-1924 (cloth, $49.95) and save 20%
[Total Regular Price: $34.95 + $49.95 =3D $84.90]Purchase Together: =
$67.92
CIUS Press is the largest publisher of English-language material about=20 Ukraine. It is the publishing arm of the Canadian Institute of Ukrainian =
Studies at the University of Alberta and the University of Toronto. The=20 emergence of Ukraine as an independent state has focused general and=20 scholarly interest on Ukrainian studies, and CIUS Press is meeting that=20 interest and need with a sizeable offering of new, forthcoming, and=20 already published books.
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<DIV><FONT color=3D#000080 size=3D5><FONT size=3D6><STRONG>ACTION =
UKRAINE REPORT -=20
AUR</STRONG></FONT></FONT><FONT color=3D#000080><STRONG><FONT=20
size=3D6> </FONT></S=
TRONG> </FONT><FONT=20
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<DIV><FONT color=3D#000080 size=3D5><FONT=20
size=3D4> &nbs=
p; An=20
International Newsletter, The Latest,=20
Up-To-Date</FONT><BR></FONT> &nb=
sp; &nbs=
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<FONT color=3D#000080>In-Depth Ukrainian News, Analysis and=20
Commentary</FONT><BR><BR> =
&=
nbsp;<FONT=20
color=3D#800000> Ukrainian History, Culture, Arts, Business,=20
Religion,<BR> Sports, =
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<DIV> &n=
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<DIV><FONT color=3D#000080 size=3D4><STRONG>ACTION UKRAINE REPORT - AUR =
- Number=20
813</STRONG></FONT></DIV>
<DIV><FONT color=3D#000080>Mr. E. Morgan Williams, Publisher and =
Editor,=20
SigmaBleyzer</FONT></DIV>
<DIV><FONT color=3D#000080 size=3D4>WASHINGTON, D.C., =
FRIDAY, FEBRUARY 9,=20
2007</FONT></DIV>
<DIV><FONT=20
face=3DArial></FONT><BR> <STRONG=
> =20
<FONT size=3D5> -</FONT></STRONG><STRONG><FONT size=3D5>------- =
<FONT=20
color=3D#000080>INDEX OF ARTICLES =
</FONT>--------</FONT></STRONG></DIV>
<DIV> <FONT=20
color=3D#800000> Clicking on the title of any article takes=20
you directly to the=20
article.  =
; </FONT></DIV>
<DIV><FONT color=3D#800000> Return to the Index by =
clicking=20
on Return to Index at the end of each article</FONT></DIV>
<DIV><BR>1<A=20
name=3Di1>.</A> &nbs=
p; <A=20
href=3D"#a1">SWEDEN'S TOP BANK BUYS INTO UKRAINE<BR></A>By David Ibison =
in=20
Stockholm and Roman Olearchyk in Kiev<BR>Financial Times, London, UK, =
Thursday,=20
February 8 2007<BR><BR>2<A=20
name=3Di2>. &n=
bsp; <A=20
href=3D"#a2">UKRAINE'S CREDIT RATING MAY BE=20
RAISED</A><BR>  =
; =
=20
<A href=3D"#a2">BY MOODY'S, S&P ON=20
GROWTH</A><BR>Bloomberg News, London, UK, Thursday, 08 Feb =
2007<BR><BR>3<A=20
name=3Di3>. </A> <A =
href=3D"#a3">UKRAINE=20
OFFERS VANCO 50% OF PRIKERCHENSKY</A> </DIV>
<DIV> <A href=3D"#a3">OIL AND GAS FIELD =
DURING=20
INDUSTRIAL PRODUCTION</A> <BR>Interfax - Russia, Kyiv, Ukraine, Tuesday, =
Feb 06,=20
2007<BR><BR>4<A name=3Di4>. <A href=3D"#a4">BRC CERTIFICATE OPENS =
EXPORT DOOR=20
FOR=20
UKRAINE'S</A><BR> &n=
bsp; =20
<A=20
href=3D"#a4">SANDORA JUICE COMPANY<BR></A>FreshPlaza correspondent =
Poland,=20
FreshPlaza<BR>Hertenkamp, The Netherlands, Thursday, February 8, =
2007<BR><BR>5<A=20
name=3Di5>. <A href=3D"#a5">UKRAINE'S NATIONAL NUCLEAR POWER =
GENERATING=20
CO</A><BR> <A =
href=3D"#a5">CONFIRMS=20
WESTRON AS ITS CORPORATE=20
SUPPLIER<BR></A> &nb=
sp;=20
Westron was founded in 1994 by Khartron (Ukraine)=20
and<BR> =
=20
Westinghouse Electric Company (United States).<BR>Ukrainian News Agency, =
Kyiv,=20
Ukraine, Wednesday, February 7, 2007<BR><BR>6<A name=3Di6>. <A=20
href=3D"#a6">U.S. BROADCASTING BUDGET PROPOSES REDUCTIONS=20
FOR</A><BR> <A=20
href=3D"#a6">UKRAINIAN BROADCASTS BY BOTH VOA AND=20
RADIO</A><BR> =
=20
<A href=3D"#a6">FREE EUROPE/RADIO LIBERTY=20
(RFE/RL</A>)<BR>Broadcasting Board of Governors<BR>Washington, D.C., =
Monday,=20
February 05, 2007<BR><BR>7<A name=3Di7>. <A =
href=3D"#a7">HUNGARY'S STILL=20
HOT, FROM BUDAPEST TO=20
BALATON</A><BR> &nbs=
p;=20
Irish developer also looking for investments in=20
Ukraine<BR>Kevin O'Conner, Irish Times, Ireland, Thursday, Feb 08,=20
2007<BR><BR>8<A name=3Di8>. <A href=3D"#a8">UKRAINE MOP =
MANUFACTURER LOOKING=20
FOR PARTNERS</A><BR>ISSA News, The Experts on Cleaning and=20
Maintenance<BR>Lincolnwood, Illinois, Wednesday, February 7, =
2007<BR><BR>9<A=20
name=3Di9>. <A=20
href=3D"#a9">UKRAINE: 2006 - A YEAR OF ECONOMIC =
SUCCESS?<BR></A>COMMENTARY AND=20
ANALYSIS: By Valentin Zelenyuk<BR>Kyiv Post, Kyiv, Ukraine, Thursday, =
Feb 08=20
2007<BR><BR>10<A name=3Di10>. <A href=3D"#a10">POLISH =
MINISTER=20
URGES U.S. INTEREST IN=20
PLANNED</A><BR> &nbs=
p;  =
; =20
<A href=3D"#a10">UKRAINE-POLAND OIL PIPELINE</A><BR>PAP news agency, =
Warsaw,=20
Poland, Tuesday, 6 Feb 07<BR><BR>11<A name=3Di11>. <A=20
href=3D"#a11">CASE-NEW HOLLAND OFFERS STATE AGRICULTURAL</A><BR> =
<A=20
href=3D"#a11">LEASING COMPANY PROGRAM TO ORGANIZE PRODUCTION</A>=20
<BR> =20
<A href=3D"#a11">OF AGRICULTURAL MACHINERY IN =
UKRAINE</A>=20
<BR>By Dmytro Kuzmin, Ukrainian News Agency<BR>Kyiv, Ukraine, Friday, =
February=20
2, 2007<BR><BR>12<A name=3Di12>. <A href=3D"#a12">FORMATION OF =
COUNCIL OF=20
INVESTORS (COI)=20
POSTPONED</A><BR> &n=
bsp; &nb=
sp; =20
List of members has not been approved<BR>By Natalya Nepryakhina, The=20
Kommersant-Ukraine<BR>Kyiv, Ukraine, Friday, February 02, =
2007<BR><BR>13<A=20
name=3Di13>. =
<A=20
href=3D"#a13">YANUKOVYCH TO BECOME HIS OWN=20
ADVISOR</A><BR> Cabinet of Ministers created Council of =
Investors (COI) Advisory Body<BR>By Antonina Bazhan, The Ekonomichna =
Pravda=20
internet newsletter<BR>Business and economy by Ukrayinska Pravda, </DIV>
<DIV>Kyiv, Ukraine, Thursday, Feb. 1, 2007<BR><BR>14<A=20
name=3Di14>. &=
nbsp; =20
<A href=3D"#a14">A FAIR LAND MARKET OR A LAND GRAB?<BR></A>ANALYSIS =
&=20
COMMENTARY: Gary Reusche & Stephan Vitvitsky<BR>Kyiv Post Kyiv, =
Ukraine,=20
Thursday, February 08 2007<BR><BR>15<A =
name=3Di15>. <A=20
href=3D"#a15">UKRAINE: THE ECONOMIC EFFECTS OF =
CORRUPTION</A><BR>ANALYSIS &=20
COMMENTARY: By Oleksandr Shepotylo<BR>The Ukrainian Observer magazine=20
#228<BR>The Willard Group, Kyiv, Ukraine, February 2007<BR><BR>16<A=20
name=3Di16>. <A href=3D"#a16">LARGE U.S. STEEL PRODUCER NUCOR =
STARTS=20
PURCHASE</A> </DIV>
<DIV><A href=3D"#a16">OF PIG IRON FROM DONETSK REGION METALLURGICAL =
PLANT</A><BR>Ukrainian News Agency, Kyiv, Ukraine, Thu, February 1,=20
2007<BR><BR>17<A name=3Di17>. <A href=3D"#a17">NETHERLANDS CO =
INVESTS IN=20
UKRAINE FOR FIRST TIME<BR></A> Acquires over 50% of =
Styrol=20
chemical concern (Horlivka, Donetsk region)<BR>Ukrainian News Agency, =
Kyiv,=20
Ukraine, Friday, February 2, 2007 <BR><BR>18<A name=3Di18>. <A=20
href=3D"#a18">USAID REALIZING TWO-YEAR $8M PROJECT TO=20
DEVELOP<BR></A> &nbs=
p; <A=20
href=3D"#a18">TRADE, INVESTMENT AND BUSINESS IN UKRAINE<BR></A>Interfax =
Ukraine=20
Economic, Kyiv, Ukraine, Wed, January 31, 2007<BR><BR>19<A=20
name=3Di19>. <A href=3D"#a19">POLISH ALUMINUM KETY TO =
LAUNCH=20
PRODUCTION IN<BR></A> <A =
href=3D"#a19">UKRAINE=20
IN 10 DAYS; EXPECTS FURTHER INVESTMENTS<BR></A>Interfax Ukraine =
Economic, Kyiv,=20
Ukraine, Thursday, February 1, 2007<BR><BR>20<A name=3Di20>. <A=20
href=3D"#a20">FRENCH GROUP DANONE TO INVEST OVER EUR 20 M=20
IN<BR></A> &nb=
sp; =20
<A href=3D"#a20">KHERSON DAIRY PLANT CJSC =
RODYCH</A><BR>Interfax=20
Ukraine Economic, Kherson, Ukraine, Friday, January 26, 2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>21<A name=3Di21>. <A href=3D"#a21">AUSTRIA'S MEINL LAND LTD TO MAKE =
FIRST=20
INVESTMENT IN</A><BR> <A href=3D"#a21">UKRAINE =
WITH EUR=20
150 MILLION IN TRADE CENTER IN ODESA</A><BR>Interfax Ukraine Economic, =
Kyiv,=20
Ukraine, Sunday, January 25, 2007<BR></DIV>
<DIV> </DIV>
<DIV>22<A name=3Di22>. <A href=3D"#a22">UKRAINE: NESTLE TO INVEST OVER =
$50 MLN IN=20
NEW=20
PLANT </A><BR> =
=
Will employ 1,200 workers in Volinskiy Region<BR>Interfax-Ukraine, Kyiv, =
Ukraine, Wednesday, Jan 24, 2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>23<A name=3Di23>. <A href=3D"#a23">HUNGARIAN SWEETS =
MAKER=20
BONBONETTI EXPECTS A</A> </DIV>
<DIV> <A href=3D"#a23">MAJOR BOOM IN EXPORTS TO RUSSIA =
AND=20
UKRAINE IN 2007<BR></A>Interfax Central Europe, Budapest, Hungary, Thu, =
January=20
25, 2007</DIV>
<DIV> </DIV>
<DIV>24<A name=3Di24>. <A href=3D"#a24">BIODIESEL OF =
BESSARABIA TO=20
LAUNCH=20
BIOETHANOL<BR></A> &=
nbsp; =20
<A href=3D"#a24">MINI-PLANT IN ODESA REGION BY =
FEBRUARY<BR></A>Interfax=20
Ukraine Economic, Kyiv, Ukraine, Friday, January 26, 2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>25<A name=3Di25>. <A href=3D"#a25">UKRAINIAN PRESIDENT =
MEETS WITH=20
U.S.=20
HELICOPTER</A><BR> &=
nbsp; =20
<A href=3D"#a25">MAKER SIKORSKY AIRCRAFT CORPORATION</A><BR>Interfax-AVN =
military=20
news agency website, Moscow, in English 18 Jan 07<BR>BBC Monitoring =
Service,=20
United Kingdom, Thursday, Jan 18, 2007<BR></DIV>
<DIV> </DIV>
<DIV>26<A=20
name=3Di26>. &=
nbsp;<A=20
href=3D"#a26">UKRAINIANS: THE INFERIORITY SYNDROME?<BR></A>ANALYSIS =
&=20
COMMENTARY: By Volodymyr Senchenko<BR>The Ukrainian Observer magazine, =
Issue=20
227<BR>The Willard Group, Kyiv, Ukraine, January 2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>27<A name=3Di27>. <A href=3D"#a27">STRUGGLE =
ERUPTS OVER=20
ANCIENT CHURCH IN KYIV</A><BR>ANALYSIS & COMMENTARY: Elisabeth =
Sewall,=20
Assistant Editor<BR>Kyiv Post, Kyiv, Ukraine, Thursday, February 08 =
2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>28<A name=3Di28>. <A href=3D"#a28">INTERNET ENCYCLOPEDIA OF =
UKRAINE (IEU)=20
FEATURES:<BR></A> &n=
bsp; <A=20
href=3D"#a28">THE ART OF FRESCO PAINTING IN UKRAINE<BR></A>Internet =
Encyclopedia=20
of Ukraine Newsletter<BR>Dr. Marko R. Stech, Managing Director, CIUS=20
Press<BR>Project Manager, Internet Encyclopedia of Ukraine<BR>Toronto, =
Ontario,=20
Canada, February 2007</DIV>
<DIV> </DIV>
<DIV>29<A name=3Di29>. </A><A href=3D"#a29">KYIV MOHYLA ACADEMY =
FUNDRAISER IN=20
WASHINGTON </A><FONT=20
face=3DArial> =
=20
</FONT></DIV>
<DIV> &n=
bsp; &nb=
sp; =20
Sunday, February 11, 2007</DIV>
<DIV>Action Ukraine Report (AUR) #813, Article 29</DIV>
<DIV>Washington, D.C., Friday, February 9, 2006</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>30<A name=3Di30>. <A =
href=3D"#a30">CIUS=20
PRESS PRESENTS A GUIDE FOR=20
UKRAINIAN<BR></A> &n=
bsp; &nb=
sp; =20
<A href=3D"#a30">GENEALOGICAL RESEARCH </A></DIV>
<DIV>CIUS Press, University of Alberta, Edmonton, AB, Canada, Feb,=20
2007<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>1<A=20
name=3Da1>. </A> <STRONG><FONT =
color=3D#000080=20
size=3D4> </FONT></STRONG><FONT color=3D#000080 =
size=3D4><STRONG>SWEDEN'S=20
TOP BANK BUYS INTO UKRAINE<BR></STRONG></FONT><BR>By David Ibison in =
Stockholm=20
and Roman Olearchyk in Kiev<BR>Financial Times, London, UK, Thursday, =
February 8=20
2007<BR><BR>Swedbank, Sweden's largest bank, is to acquire Ukraine's=20
TAS-Kommerzbank<BR>for up to $985m, continuing the eastward expansion of =
TAS-Kommerzbank,<BR>Ukraine's 13th-largest lender, for $735m plus an =
additional=20
$250m in three<BR>years if the bank's performance meets certain =
undisclosed=20
criteria.<BR><BR>Sweden's largest banks are expanding into the Baltics, =
eastern=20
and central<BR>Europe and Russia, driven by surging economies in those =
regions=20
and<BR>populations there that are relatively new to sophisticated =
banking=20
services<BR>and products.<BR><BR>Swedbank and SEB, another Swedish bank, =
control=20
70 per cent of the Baltic<BR>banking market between them and derive up =
to a=20
quarter of net profits from<BR>the region.<BR><BR>Yesterday's =
acquisition=20
provides further proof that Ukraine's banking sector<BR>is poised for a =
period=20
of acquisitions. Foreign ownership of Ukrainian banks<BR>is about 25 per =
cent=20
compared with 70 per cent in Poland and 90 per cent in<BR>the Czech=20
Republic.<BR><BR>Several European banking groups, including the National =
Bank of=20
Greece, are<BR>close to completing acquisitions of two other Ukrainian =
banks,=20
Forum and<BR>Kreditprombank, and a handful of medium-sized banks are =
also for=20
sale.<BR><BR>Ukraine has a population of 47m, nine times larger than =
Sweden's,=20
but its<BR>per capita gross domestic product is languishing at about =
$1,771,=20
well<BR>behind its central and eastern European neighbours. However, an=20
expected<BR>compound annual growth rate of 5.3 per cent over the next =
five years=20
is<BR>expected to narrow this gap.<BR><BR>TAS-Kommerzbank was founded in =
1989=20
and has 170 branches nationwide.<BR>Its net interest margin in 2006 was =
6.5 per=20
cent, down from 8.6 per cent in<BR>2004 and 7.5 per cent last =
year.<BR><BR>It=20
has total loans $834m, although non-performing loan figures were=20
not<BR>disclosed. Its cost income ratio is 54 per cent, down from last =
year's=20
58<BR>per cent but up from 2004's 39 per cent. Since 2004 it has more=20
than<BR>doubled its workforce and expanded its branch=20
network.<BR>-------------------------------------------------------------=
--------------------------------<BR><A=20
href=3D"http://www.ft.com/cms/s/4782e638-b719-11db-8bc2-0000779e2340.html=
">http://www.ft.com/cms/s/4782e638-b719-11db-8bc2-0000779e2340.html</A><B=
R>-----------------------------------------------------------------------=
--------------------------</DIV>
<DIV>[<A href=3D"#i1">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]</DIV>
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=3D=3D=3D=3D=3D=3D=3D=3D<BR>2<A=20
name=3Da2>.</A> <STRONG><FONT color=3D#000080 =
size=3D4> =20
</FONT></STRONG><FONT color=3D#000080 size=3D4><STRONG>UKRAINE'S CREDIT =
RATING MAY=20
BE=20
RAISED<BR> &nb=
sp; =20
BY MOODY'S, S&P ON GROWTH<BR></STRONG></FONT><BR>Bloomberg News, =
London,=20
UK, Thursday, 08 Feb 2007<BR><BR>Ukraine's credit ratings may be =
lifted=20
this year by international credit <BR>agencies including Moody's =
Investors=20
Service and Standard & Poor's </DIV>
<DIV>as high prices for steel and grain drive economic =
growth.<BR><BR><FONT=20
color=3D#800000>Ukraine is the biggest former Soviet state with credit =
ratings=20
below <BR>investment grade, a legacy of political instability and delays =
in=20
selling <BR>state assets and gaining membership of the =
WTO.<BR><BR>"Ukraine's=20
rating is B1, which is very low," said Jonathan Schisser, a <BR>Moody's =
analyst=20
in London by telephone. "We may raise it" though the </FONT></DIV>
<DIV><FONT color=3D#800000>timing "depends on political stability and =
the=20
government's ability to carry </FONT></DIV>
<DIV><FONT color=3D#800000>out structural =
reforms."<BR></FONT><BR>Ukraine, a=20
country of 47 million bordering the EU and Russia, seeks higher =
<BR>credit=20
ratings to reduce borrowing costs and win more overseas=20
investment.<BR><BR>Foreign direct investment since the collapse of =
communism in=20
1991 totals $20 <BR>billion, less than a fifth of the amount lured by=20
neighboring Poland. Higher <BR>credit ratings mean lower debt costs for =
the=20
government and Ukrainian <BR>companies.<BR><BR>Ukraine's 7.65% benchmark =
foreign</DIV>
<DIV>policies.<BR><BR>Yushchenko seeks to bring the country into the =
European=20
Union and NATO. <BR>Yanukovych, who aims to rekindle links with Russia, =
has=20
taken control over <BR>some presidential powers, a move Yushchenko is=20
challenging through the <BR>courts.<BR><BR>"The situation there is not=20
fantastically improving, but it is stabilizing," <BR>Standard & =
Poor's=20
analyst Helena Hessel said in a telephone interview in New <BR>York. =
"The main=20
constraint" on a ratings upgrade"is the political situation, <BR>as the=20
president is losing power and the prime minister is opposing =
him."<BR><BR>Still,=20
economic growth averaged 8.4% in the past five years and GDP has more =
<BR>than=20
tripled from $30 billion in 1998, when the nation defaulted on hundreds =
<BR>of=20
millions of dollars in debt, devalued its currency and eroded=20
reserves.<BR><BR>"We expect the rating agencies to respond to the =
improved=20
credit <BR>fundamentals by delivering rating upgrades this year," Tim =
Ash, the=20
managing <BR>director at Bear Stearns International Ltd., said in =
e-mailed=20
comment on <BR>February 7. "Ukraine's rating at four to five notches =
behind=20
Russia appears <BR>somewhat unjust."<BR><BR>Russia is rated Baa2 by =
Moody's,=20
BBB+ by S&P, BBB+ by Fitch. Poland, </DIV>
<DIV>which joined the EU in 2004, is rated A2 by Moody's, A- by S&P, =
A-=20
by</DIV>
<DIV>Fitch.<BR><BR><FONT color=3D#800000>Exports including steel and =
grain and=20
proceeds from shipping Russian gas via <BR>Ukrainian pipelines to Europe =
make up=20
more than half of GDP. The economy is <BR>forecast to expand 6% a year =
through=20
2011, said Economy Minister Oleksandr <BR>Makukha on January=20
30.<BR><BR></FONT>Ukrainian steel was traded at $455 per ton on the spot =
market=20
February 5, <BR>compared with $312 per ton a year ago, according to =
Bloomberg=20
data.<BR><BR>Average prices for Ukrainian steel will increase 5% to 7% =
this year=20
from a <BR>year ago, analysts say, including Ivan Kharchuk, an analyst =
at=20
Kiev-based <BR>largest brokerage Dragon Capital.<BR><BR><FONT=20
color=3D#800000>Average prices for Ukrainian grain were $153 per ton in =
January=20
this year, <BR>compared with $85 per ton a year ago, Bloomberg data =
shows. "We=20
</FONT></DIV>
<DIV><FONT color=3D#800000>believe there is a good prospect of an =
upgrade," said=20
Ed Parker, a senior </FONT></DIV>
<DIV><FONT color=3D#800000>director at Fitch sovereign group in London, =
in an=20
e-mailed statement."<BR></FONT><BR>Although Ukraine is likely to be =
subject to=20
political noise for the <BR>foreseeable future, Fitch believes that =
political=20
risk is of a lower order <BR>of magnitude than two-three years=20
ago."<BR><BR>Moody's raised Ukraine's outlook to positive from stable in =
November, <BR>indicating it is ready to improve the rating. The foreign =
and=20
local issuer <BR>default rating was affirmed at B1, four steps below =
investment=20
grade. </DIV>
<DIV>Fitch raised Ukraine's outlook to positive a month before =
that.<BR><BR>The=20
foreign and local issuer default rating was affirmed at BB-, three steps =
<BR>below investment grade. S&P kept its long-term foreign debt =
rating at=20
BB-, <BR>its long-term local debt rating at BB and its short-term =
sovereign=20
credit <BR>rating at B, the company said in a statement in July. The =
outlook=20
remained <BR>"stable," S&P=20
said. &n=
bsp; &nb=
sp; =20
-30-<BR>-----------------------------------------------------------------=
-------------------------------</DIV>
<DIV>[<A href=3D"#i2">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>3<A=20
name=3Da3>.</A> <FONT color=3D#000080 size=3D4><STRONG>UKRAINE =
OFFERS VANCO 50%=20
OF PRIKERCHENSKY </STRONG></FONT></DIV>
<DIV><FONT color=3D#000080 size=3D4><STRONG> OIL AND GAS FIELD =
DURING=20
INDUSTRIAL PRODUCTION <BR></STRONG></FONT><BR>Interfax - Russia, Kyiv, =
Ukraine,=20
Tuesday, Feb 06, 2007<BR><BR>KYIV - Ukraine is proposing that Vanco=20
International Limited sign a<BR>production sharing agreement (PSA) on =
the=20
Prikerchensky oil and gas field </DIV>
<DIV>in a proportion of 60:40 during industrial testing and 50:50 during =
industrial<BR>production, Environmental Protection Minister Vasyl =
Dzharty told=20
reporters<BR>on Tuesday in Kyiv.<BR><BR>The PSA preparations with Vanco =
are in=20
the final stages, Dzharty said. "The<BR>document will be sent off next =
week,=20
will be agreed on and will already be<BR>signed within a month. There =
are no=20
more major problems [with Vanco]," he<BR>said. "We have prepared these =
terms and=20
I think that Vanco will agree to<BR>them," he said.<BR><BR>Vanco =
International,=20
a subsidiary of Vanco Energy Company, in April 2006 won<BR>a tender =
announced by=20
the Ukrainian government on the right to reach a PSA<BR>agreement on the =
Prikerchensky oil and gas field.<BR><BR>Vanco sent the Interagency =
Commission=20
its initial draft of the PSA in July<BR>2006 that was adjusted several =
times.=20
The Ukrainian government did not like<BR>the draft proposed by Vanco and =
instructed the commission to prepare its own<BR>version in October 2006 =
within=20
three months.<BR><BR>Covering 3.2 million acres (12,960 square =
kilometers), the=20
Prikerchensky PSA<BR>Tender Area is located offshore the Crimea near the =
Kerch=20
region. In its<BR>northern shallower part, the Tender Area contains a =
prominent=20
Tertiary<BR>folded belt with numerous prospective structures similar to =
the=20
recently<BR>announced Subbotina oil and gas discovery.<BR><BR>The field =
has=20
tentative D+2+3 reserves of 30,000 tonnes of fuel units per<BR>square =
kilometer.=20
No drilling has been carried out at the section. =20
-30-<BR>-----------------------------------------------------------------=
-------------------------------<BR>[<A=20
href=3D"#i3">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]</DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>4<A=20
name=3Da4>.</A> <FONT color=3D#000080>BRC CERTIFICATE OPENS EXPORT =
DOOR FOR=20
UKRAINE'S<BR> =
=20
SANDORA =
JUICE=20
COMPANY</FONT><BR><BR>FreshPlaza correspondent Poland, =
FreshPlaza<BR>Hertenkamp,=20
The Netherlands, Thursday, February 8, 2007<BR><BR>WARSAW - The =
Ukrainian=20
company Sandora occupies the leading position<BR>on the Ukrainian juice =
market.=20
According to the data provided by MEMRB,<BR>Sandora's share on the =
Ukrainian=20
juice market was about 47% in 2006.<BR><BR>Last year, the company's =
sales grew=20
by 26% in comparison with data from<BR>2005. In 2005 Sandora produced =
409,3=20
million units of production (juice +<BR>wine), in 2006 - 536,1 million=20
units.<BR><BR>The production is exported to 24 countries, and Sandora is =
already=20
leader in<BR>juice markets of Belarus, Moldova, Azerbaijan, Armenia and=20
Kirgizstan. An<BR>increase in export sales in 2006 - in comparison with =
2005 -=20
was about 40%.<BR><BR>2006 became the year of active development and =
expansion=20
of technical and<BR>production capacities for Sandora, which will give =
company=20
possibility of<BR>increasing juice production by another 24% (wine - by =
15%) in=20
2007.<BR><BR>In 2006, the company opened a new plant with an investments =
of 20=20
million $.<BR>The new enterprise is equipped with 5 production lines =
with a=20
production<BR>capacity of 400 million units per year (next two =
additional new=20
production<BR>lines will make possible to increase the production =
capacities to=20
575<BR>millions units per year).<BR><BR>But to its final designed =
capacity - 670=20
mln units per year - will be<BR>reached by the end of 2007, according to =
company's forecast.<BR><BR>What is interesting, Sandora is the only =
producer in=20
the Ukraine, and one of<BR>the few in East Europe, who obtained the BRC=20
certificate - the universal<BR>British standard, which opens the doors =
to=20
networks of British supermarkets<BR>Sainbury, Asda, Tesco, Waitrose) and =
retailers in Finland, Norway, Sweden<BR>and=20
Netherlands. &=
nbsp; &n=
bsp; &nb=
sp; =20
-30-<BR>-----------------------------------------------------------------=
------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.freshplaza.com/2007/0208/1-7_ua_brc.htm">http://www.fr=
eshplaza.com/2007/0208/1-7_ua_brc.htm</A><BR></DIV>
<DIV>--------------------------------------------------------------------=
----------------------------</DIV>
<DIV>[<A href=3D"#i4">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV> <FONT color=3D#800000> <FONT size=3D4>Send in =
names and=20
e-mail addresses for the AUR distribution=20
list.<BR></FONT></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>5<A=20
name=3Da5>.</A> <FONT color=3D#000080>UKRAINE'S NATIONAL NUCLEAR =
POWER=20
GENERATING CO<BR> =
CONFIRMS=20
WESTRON AS ITS CORPORATE=20
SUPPLIER<BR> &=
nbsp; =20
Westron was founded in 1994 by Khartron (Ukraine)=20
and<BR> =
=20
Westinghouse Electric Company (United =
States).<BR></FONT><BR>Ukrainian=20
News Agency, Kyiv, Ukraine, Wednesday, February 7, 2007<BR><BR>KYIV - =
The=20
Enerhoatom national nuclear power generating company has<BR>confirmed =
the status=20
of Westron, a Ukrainian-American joint venture </DIV>
<DIV>based in Kharkiv, as its corporate supplier. Westron announced this =
in=20
a<BR>statement, a text of which Ukrainian News =
obtained.<BR><BR>Enerhoatom=20
granted Westron the status of its corporate supplier in late<BR>January, =
thus=20
granting it the rights of developer, supplier, and chief<BR>installer of =
automated systems for controlling technological processes,<BR>software =
for=20
control and management systems, and electronic equipment<BR>at all =
nuclear power=20
stations. The status is valid until January 10, 2010.<BR><BR>According =
to the=20
statement, Enerhoatom made this decision based on the<BR>results of an =
audit it=20
conducted. The audit was conducted in connection<BR>with the expiration =
of a=20
similar decision that the company made in 2004.<BR><BR>As Ukrainian News =
earlier=20
reported, Westron is an affiliate of the Khartron<BR>company, a producer =
of=20
electronic control systems.<BR><BR>Westron specializes in development =
and=20
production of automatic systems<BR>for managing technological processes =
at=20
nuclear and thermoelectric power<BR>stations as well as for other =
industrial=20
facilities.<BR><BR><FONT color=3D#800000>Westron was founded in 1994 by =
Khartron=20
(Ukraine) and Westinghouse<BR>Electric Company (United States). The =
company=20
exports its products to<BR>Russia, Lithuania, the Czech Republic, =
Bulgaria,=20
Sweden, the United States,<BR>and other =
countries.<BR></FONT><BR>Enerhoatom=20
intends to invest UAH 257 million in modernization, improving<BR>safety, =
and=20
extending the service lives of reactors at nuclear power plants<BR>in=20
2007.<BR><BR>Enerhoatom operates the four nuclear power stations in =
Ukraine and=20
accounts<BR>for about 50% of the total quantity of electricity generated =
in the=20
country. </DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>
<DIV>NOTE: Westinghouse is a member of the Ukraine-U.S. =
Business=20
</DIV>
<DIV>Council in Washington, D.C. </DIV></DIV>
<DIV>--------------------------------------------------------------------=
----------------------------</DIV>
<DIV>[<A href=3D"#i5">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D <BR>6<A=
=20
name=3Da6>.</A> <FONT color=3D#000080>U.S. BROADCASTING BUDGET =
PROPOSES=20
REDUCTIONS FOR<BR> =
UKRAINIAN BROADCASTS BY BOTH VOA AND=20
RADIO<BR> &nbs=
p; =20
FREE EUROPE/RADIO LIBERTY=20
(RFE/RL)<BR><BR></FONT>Broadcasting Board of Governors<BR>Washington, =
D.C.,=20
Monday, February 05, 2007<BR><BR>WASHINGTON - The proposed fiscal year =
2008=20
budget for U.S.<BR>international broadcasting calls for an overall =
increase of=20
3.8% from<BR>the anticipated fiscal year 2007 level that strengthens=20
targeted<BR>programming to provide essential access to news and =
information=20
to<BR>critical audiences.<BR><BR>The budget proposal is also aimed at =
increasing=20
overall audience reach<BR>around the world by utilizing the latest =
technology=20
and strengthening<BR>transmission capability.<BR><BR>Of the Broadcasting =
Board=20
of Governors' (BBG) $668.2 million request,<BR>$142.4 million is =
allocated for=20
programming to the Near East, South, Central<BR>Asia and Eurasia, $116 =
million=20
for Arabic language programming, $67.2<BR>million for East Asia, $45 =
million for=20
Latin America and $13.6 million for<BR>Africa.<BR><BR>The proposal =
includes=20
enhancements the agency believes are pivotal to<BR>promoting freedom and =
democracy and enhancing understanding in key<BR>regions. They=20
include:<BR><BR>[1] Establishing a 10-hour coordinated stream of Voice =
of=20
America (VOA)<BR>and Radio Free Asia (RFA) daily programming to North=20
Korea.<BR>[2] Launching a daily three-hour live Alhurra television =
program=20
produced<BR>and broadcast from the Middle East.<BR>[3] Continuing VOA's =
Somali=20
Service's 30 minute daily radio broadcast<BR>scheduled to launch =
February 12,=20
2007, to the millions of Somali speakers </DIV>
<DIV>in Somalia, Djibouti and the greater Horn of Africa.<BR>[4] =
Improving Radio=20
and TV Mart=ED's reach into Cuba through additional<BR>transmission =
capability and=20
enhancing the production of the programming.<BR>VOA programming to Cuba =
would be=20
increased to 7 days a week.<BR><BR>The budget also fully funds =
initiatives begun=20
in FY 2006 to critical Muslim<BR>audiences. These include the expansion =
of VOA=20
television to Iran to a 12<BR>hour stream, VOA Pashto radio programming =
to the=20
Afghanistan/Pakistan </DIV>
<DIV>border region, television programs to Afghanistan and Pakistan and =
Alhurra=20
</DIV>
<DIV>Europe, the 24/7 service to Arabic speakers in Europe.<BR><BR>To =
fund these=20
initiatives and mandatory cost increases, the request proposes<BR>the =
following=20
savings: elimination of VOA and RFA broadcasts in Cantonese<BR>as well =
as VOA=20
Uzbek.<BR><BR><FONT color=3D#800000>Reductions to the =
following:</FONT><BR><FONT=20
color=3D#800000>[1] Ukrainian broadcasts by both VOA and Radio Free=20
Europe/<BR> Radio Liberty =
(RFE/RL);<BR></FONT>[2]=20
Tibetan broadcasts by VOA and RFA;<BR>[3] VOA Portuguese to Africa; =
and<BR>[4]=20
broadcasts in Romanian, South Slavic and Kazakh by RFE/RL.<BR><BR>Other =
savings=20
will come from reductions in support services.<BR><BR>The FY 2008 =
request also=20
includes several enhancements and reductions<BR>requested in FY 2007. =
These=20
include funds to increase Alhurra's live news<BR>capacity to 24 hours a =
day;=20
expansion of VOA Spanish language programming<BR>to Venezuela; =
additional=20
transmission capabilities for RFE/RL Russian and<BR>RFA Korean =
broadcasts and=20
increased funding for employee training and<BR>award =
programs.<BR><BR>Proposed=20
reductions for FY 2007 included in the FY 2008 request =
include<BR>eliminating=20
VOA broadcasts in Croatian, Greek, Georgian and Thai as well<BR>as =
RFE/RL=20
broadcasts in Macedonian.<BR><BR>The request includes eliminating VOA =
radio=20
broadcasts but continuing<BR>television programming in the following =
languages:=20
Serbian, Albanian,<BR>Bosnian, Macedonian, Hindi and Russian.<BR><BR>The =
proposal also calls for discontinuing 14 hours a day of VOA =
NewsNow<BR>English=20
broadcasts while maintaining VOA's English to Africa and =
Special<BR>English=20
services and continuing to strengthen VOA English on the =
Internet.<BR><BR>The=20
Broadcasting Board of Governors is an independent federal agency=20
which<BR>supervises all U.S. government-supported, non-military=20
international<BR>broadcasting, including The Voice of America (VOA); =
Radio Free=20
Europe/Radio<BR>Liberty (RFE/RL); the Middle East Broadcasting Networks =
(Alhurra=20
TV and<BR>Radio Sawa); Radio Free Asia (RFA); and the Office of Cuba=20
Broadcasting<BR>(Radio and TV Mart=ED).<BR><BR>Through its broadcast =
services, the=20
BBG provides the United States and its<BR>leaders direct and immediate =
access to=20
a worldwide audience of 140 million<BR>people. Current governors are =
Chairman=20
Kenneth Y. Tomlinson, Joaquin F.<BR>Blaya, Blanquita W. Cullum, D. =
Jeffrey=20
Hirschberg, Edward E. Kaufman,<BR>Steven J. Simmons, and Mark McKinnon.=20
Secretary of State Condoleezza<BR>Rice serves as an ex officio=20
member. =
=20
-30-<BR>-----------------------------------------------------------------=
------------------------------<BR><A=20
href=3D"http://www.bbg.gov/_bbg_news.cfm?articleID=3D142&mode=3Dgener=
al">http://www.bbg.gov/_bbg_news.cfm?articleID=3D142&mode=3Dgeneral</=
A><BR>-------------------------------------------------------------------=
-----------------------------<BR>[<A=20
href=3D"#i6">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>7<A=20
name=3Da7>.</A> <STRONG><FONT color=3D#000080 size=3D4> HUNGARY'S =
STILL=20
HOT, BUDAPEST TO=20
BALATON</FONT></STRONG><BR> &nbs=
p; <FONT=20
color=3D#000080> Irish developer also looking =
for investments in=20
Ukraine<BR><BR></FONT>Kevin O'Conner, Irish Times, Ireland, Thursday, =
Feb 08,=20
2007<BR><BR>BUDAPEST is one of the more promising locations for =
investment,=20
according </DIV>
<DIV>to Deirdre O'Regan. With a small portfolio of Irish properties, she =
felt=20
future <BR>returns would not match the past: "I know from my rents, =
which have=20
hardly <BR>moved in three years, that the best is over for the modest =
investor -=20
so I <BR>looked abroad."<BR><BR>Trawling the net and comparing prices =
and=20
yields, she found Budapest <BR>attractive, at least on paper. The =
reality was=20
equally promising. "After two <BR>visits, I bought an office owned by a =
travel=20
agent. He paid two years rent <BR>in advance, so I had that comfort. It =
was, as=20
they say, a win-win deal."<BR><BR>The Hungarian owner got a lump of =
money and=20
the Irish investor got a <BR>property with a yield of about 7 per cent. =
Current=20
Irish returns are about <BR>3-4 per cent on similar properties. She did =
it all=20
on the net, without an <BR>agent - "found the property, corresponded =
with the=20
seller and came out to <BR>meet him".<BR><BR>The tale did not surprise =
Odran=20
Young, owner of a medium-sized estate agency <BR>in Dublin. He came out =
to live=20
permanently in Budapest four years ago, lured <BR>by the promise of =
bargains in=20
a country weaning itself away - at a fast <BR>pace - from a failed =
Communist=20
system. Now he controls the only Irish agency <BR>with a full-time =
complement of=20
staff in the Hungarian capital.<BR><BR>We were in a restaurant in Liszt =
Ferenc,=20
an enclave of boulevards and <BR>restaurants. There is gaiety and =
business and=20
music - it's an aria away from <BR>the fabled Opera House whose baroque=20
splendour has been restored with <BR>dollops of eurodosh, a mere three =
years=20
after Hungary emerged into the <BR>eurofold of favoured =
nations.<BR><BR>Already,=20
he can see the signs of creeping prosperity, a re-run of the =
<BR>experience of=20
the Irish republic. "When I came first, most of the cars were <BR>old =
bangers,=20
Ladas on their last legs.<BR><BR>Now most cars are hardly more than two =
years=20
old. The cafes are full of <BR>well-dressed young people. Then, there =
was only=20
one restaurant on Ferenc </DIV>
<DIV>and four customers - me and three in our group."<BR><BR>A lot =
has=20
changed since then, for both Budapest and Young. They have been =
<BR>agents of=20
each other's change. From his penthouse overlooking the musical =
<BR>square, he=20
counts 16 restaurants and cafe bars.<BR><BR><FONT color=3D#800000>He is =
selling=20
some of those refurbished baroque buildings and uses the <BR>Hungarian =
capital=20
to trawl for developments in Eastern Europe, notably in <BR>neighbouring =
Ukraine.<BR></FONT><BR>Hungary has been good to him, turning him from a=20
medium-sized player in <BR>Irish property to a major wheeler-and-dealer =
of=20
European property. Currently <BR>he has several new developments on the =
go in=20
Budapest, including a block of <BR>"new build" apartments in the =
university=20
district.<BR><BR>Of the 144 apartments, 80 have been sold off-plans. Not =
surprising given <BR>that prices range from 60,000 for one of about 37sq =
m=20
(400sq ft). A Dublin <BR>equivalent, in quality and location, would cost =
upwards=20
of 325,000. His <BR>buyers are mainly Irish, with British and South =
Africans as=20
runners-up in <BR>the investment stakes.<BR><BR>Expanding his Budapest =
office=20
this week to cater for the demand, he is <BR>bullish about Hungary's =
economic=20
prospects. Well, he would be, wouldn't </DIV>
<DIV>he?, given his own investment of time and monies.<BR><BR>But =
external=20
factors support his projections, with rents and wages rising at =
<BR>about 20 per=20
cent in the past 18 months, while land values do not yet <BR>reflect =
that=20
surge.<BR><BR><FONT color=3D#800000>"Property prices are cheaper here =
than in most=20
of the neighbouring <BR>countries - I can sell Budapest residential from =
1,350=20
to 1,800 a sq m (32 <BR>to 167 per sq ft), whereas Sofia (Bulgaria) is =
2,000 a=20
sq m (185 per sq ft), <BR>Ukraine is about 4,000 a sq m (371 per sq ft, =
payable=20
in dollars) and </FONT></DIV>
<DIV><FONT color=3D#800000>Krakow has gone very expensive at 5,500 a sq =
m (510 per=20
sq ft)."<BR></FONT><BR>Still smarting under the rigour of communist =
control,=20
major Hungarian banks <BR>accept existing properties as collateral for =
further=20
loans, "rolling-over" <BR>the values, which was the financial base of =
the=20
historic Irish property <BR>boom. "It took some lobbying, but finally =
the forint=20
dropped," Young <BR>recalls. Some banks will now fund 70 per cent of a=20
prospective purchase.<BR><BR>His forays into commercial property include =
shopping centres, entire office <BR>blocks, former government =
departments -=20
bought by syndicates of investors <BR>whom he describes as " typically =
two or=20
three Irish blokes, aged mid-30s to <BR>mid-40s, punting with some spare =
cash".=20
(His definition of "spare cash", is <BR>elastic, given one buy of a =
shopping=20
mall for 8 million).<BR><BR>THINKING big also drives the plans of Marty =
Carr,=20
whose golf services <BR>company is a significant partner in Zala =
Springs, about=20
two hours drive from <BR>Budapest.<BR><BR>On a greenfield site in the =
wine=20
region of Balaton, the 18-hole course is <BR>trumpeted as of =
"championship=20
quality" with 7,200 yards of drives off the <BR>tees, and around 468 =
acres of=20
playing.<BR><BR>Why Hungary for golf? "Because it was there!" is Carr's =
succinct=20
answer, <BR>before supplying some figures. "Hungary has only seven golf =
courses,=20
about <BR>one course for every 1.5 million of population; the comparable =
figure=20
for <BR>Ireland is a course for every 12,000 people.<BR><BR>Scion of the =
golfing=20
family - "I have the name but not the game" - Marty's <BR>company, Carr =
Golf=20
Services, manages six courses at home and partners <BR>investors to =
develop=20
major courses overseas.<BR><BR>"Golf, wine and baths" is the working =
motto for a=20
spa market that is <BR>currently fashionable. Zala Springs exploits the =
very=20
Hungarian capacity for <BR>enjoying bathing in thermal waters (sometimes =
outdoor=20
in winter!) as well as <BR>the region's vineyards.<BR><BR>Using golf as =
lure,=20
investing partners have funded a new 397-unit resort. <BR>Family =
apartments and=20
townhouses range from about 60-215sq m (645-2,217</DIV>
<DIV>sq ft) costing from 128,000 to around 350,000 for detached golf =
villas on=20
the <BR>fringes of the course.<BR><BR>All are being sold off plans, with =
Carr=20
claiming a 10 per cent uplift in <BR>price for buyers of the first =
phase.=20
Housing completion is scheduled for end <BR>of 2007, with the course =
playable in=20
spring of 2008.<BR><BR>Lisney is holding a property exhibition on Zala =
Springs=20
in the Westbury <BR>Hotel, Dublin, this Friday and Saturday, February =
9th and=20
10th.<BR><FONT=20
face=3DArial>------------------------------------------------------------=
------------------------------------</FONT><BR><A=20
href=3D"http://www.youngsbudapest.ie">www.youngsbudapest.ie</A>; <A=20
href=3D"http://www.casaro-hungary.com">www.casaro-hungary.com</A><BR><A=20
href=3D"http://www.zalasprings.com/www.lisney.com">www.zalasprings.com/ww=
w.lisney.com</A></DIV>
<DIV>--------------------------------------------------------------------=
----------------------------</DIV>
<DIV>[<A href=3D"#i7">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR> <FONT=20
color=3D#000080> </FONT><FONT color=3D#800000> <FONT=20
size=3D4>NOTE: Send in a letter-to-the-editor today. Let us hear =
from=20
you</FONT><STRONG><FONT=20
size=3D4>.<BR></FONT></STRONG></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>8<A=20
name=3Da8>.</A> <FONT color=3D#000080>UKRAINE MOP MANUFACTURER =
LOOKING FOR=20
PARTNERS<BR></FONT><BR>ISSA News, The Experts on Cleaning and=20
Maintenance<BR>Lincolnwood, Illinois, Wednesday, February 7,=20
2007<BR><BR>LINCOLNWOOD, Illinois - <FONT color=3D#800000>ISSA member =
AVS MOP, a=20
mop and related<BR>products manufacturer in Ukraine, has begun exporting =
its=20
products to<BR>countries outside Ukraine and is looking for European =
partners,=20
according<BR>to AVS MOP's Andrey Sukhoruchkin.<BR></FONT><BR>AVS MOP =
joined ISSA=20
in 2006. Later that year, the company attended an<BR>exhibition in =
Moscow, where=20
it secured several contracts and determined it<BR>was time to expand =
beyond=20
Ukraine.<BR><BR>It began exporting its goods in January of this year. =
Currently,=20
the company<BR>is looking to develop partnerships in Europe, where it =
buys its=20
raw<BR>materials.<BR><BR>For more information, contact Andrey =
Sukhoruchkin,=20
Kiev, Ukraine<BR>+380 50-462-62-78; e-mail, <A=20
href=3D"mailto:clin2006@ukr.net">clin2006@ukr.net</A>. &=
nbsp; =20
-30-<BR>-----------------------------------------------------------------=
----------------------------<BR><A=20
href=3D"http://www.issa.com/news/news_detail.jsp?typeId=3D101&newsid=3D=
1425&page=3D1&startPage=3D1">http://www.issa.com/news/news_detail=
.jsp?typeId=3D101&newsid=3D1425&page=3D1&startPage=3D1</A><BR=
></DIV>
<DIV>--------------------------------------------------------------------=
------------------------------------------------<BR>[<A=20
href=3D"#i8">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]</DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>9<A=20
name=3Da9>.</A> <FONT color=3D#000080 =
size=3D4><STRONG>UKRAINE: 2006 - A=20
YEAR OF ECONOMIC SUCCESS?<BR></STRONG></FONT><BR>COMMENTARY AND =
ANALYSIS: By=20
Valentin Zelenyuk<BR>Kyiv Post, Kyiv, Ukraine, Thursday, Feb 08 =
2007<BR><BR>A=20
year ago, virtually everyone gave a very pessimistic forecast for =
Ukraine's=20
<BR>economic prospects in 2006-especially due to the drastic increase in =
the=20
<BR>import price of natural gas.<BR><BR>Nevertheless, Ukraine gave =
another=20
surprise by finishing this difficult year <BR>with one of the highest =
rates of=20
economic growth in the world-about 7 <BR>percent growth in real GDP and =
about 20=20
percent GDP growth when valued in <BR>USD. One might get an =
impression=20
that Ukraine is doing very well. This, <BR>however, is an=20
illusion.<BR><BR>Indeed, even now, note that Ukraine's real GDP in 2006 =
is still=20
under 65 <BR>percent of GDP in 1990.<BR><BR>Moreover, according to the =
World=20
Bank 2006 report, the gross national income <BR>per capita in Ukraine is =
only=20
$1,520 - this is less than in Morocco <BR>($1,730), Guatemala ($2,400), =
Albania=20
($2,580), Algeria ($2,730), Namibia <BR>($2,990) and in many other =
developing=20
countries!<BR><BR><FONT color=3D#800000>Such a dismally poor performance =
can be=20
hardly believed-given the fact that <BR>the Ukrainian population has a=20
relatively high level of education enabling <BR>them to produce big =
airplanes,=20
satellites and space rockets - a potential <BR>that a majority of =
countries in=20
the world lack.<BR><BR>What are the main reasons for such a shameful =
economic=20
performance? To </FONT></DIV>
<DIV><FONT color=3D#800000>give a brief answer, the main problem is =
rooted in the=20
lack of reforms that </FONT></DIV>
<DIV><FONT color=3D#800000>could liberalize the economy in=20
Ukraine.<BR><BR></FONT>Indeed, since obtaining independence in 1991 and =
up until=20
now, Ukraine has <BR>been lagging behind other transitional and =
developing=20
countries in terms of <BR>implimentation of economic reforms, and has =
been=20
characterized as a <BR>repressed and mostly unfree economy (e.g., see =
indexes of=20
economic </DIV>
<DIV>freedom by the Cato Institute and by the Heritage =
Foundation).<BR><BR>So,=20
lagging behind in reforms has made Ukraine lag behind in terms of </DIV>
<DIV>wealth per capita as well.<BR><BR>The main reform that is urgently =
needed=20
now is the tax reform. It is worth <BR>noting that up until 1998, the =
tax burden=20
in Ukraine was one of the highest <BR>among all countries in the=20
world.<BR><BR>Some positive steps have been taken since then - through =
the=20
introduction of <BR>a simple and moderate tax for private entrepreneurs =
at the=20
end of 1998 and a <BR>substantial reduction of personal income tax to a =
flat=20
rate of 13 percent in <BR>2004.<BR><BR>These two steps helped Ukraine =
move away=20
from its deep economic fall and <BR>recession since 1991 to decent =
economic=20
growth since 2000 and an economic <BR>boom in 2004.<BR><BR>Ukraine's =
corporate=20
taxes, however, remain excessively burdensome in <BR>Ukraine, making it =
less=20
attractive than most countries in the world. Indeed, <BR>according to =
various=20
cross-country world ratings, the rank of Ukraine on the <BR>ease of tax =
burden=20
is astonishingly bad.<BR><BR>For example, according to a very =
comprehensive=20
World Bank survey 'Doing <BR>Business - 2007,' based on 10 major =
criteria=20
crucial for a business, Ukraine <BR>was ranked 174 out of 175 countries! =
In the=20
2006 version of this report, <BR>Ukraine was ranked 151 out of 155 - =
only better=20
than Belarus and three <BR>African countries, while now only Belarus is =
behind=20
Ukraine.<BR><BR>The most recent estimates of the World Bank survey =
suggest that=20
an average <BR>firm in Ukraine has to pay about 60.3 percent of =
their=20
gross profit in <BR>various taxes. By all standards, the current =
taxation burden=20
on businesses <BR>in Ukraine is prohibitively high for a country that=20
desperately needs <BR>economic recovery.<BR><BR>What should be =
clear for=20
policymakers is that countries that had a good <BR>ranking on taxation =
(and=20
other important criteria of the business <BR>environment) were =
performing much=20
better than those who had a poor </DIV>
<DIV>ranking.<BR><BR>More specifically, every country that achieved an =
economic=20
miracle (e.g., <BR>Hong Kong, Singapore, South Korea, Taiwan, Ireland, =
Estonia,=20
etc.) had low <BR>taxes and liberalized markets. On the other hand, =
those=20
countries that had <BR>excessive taxation and excessive government =
bureaucracy=20
(Armenia, Moldova, <BR>North Korea, Uzbekistan, Ukraine, etc.) had =
economic=20
disasters.<BR><BR>Many people, certainly including myself, hoped that =
after the=20
Orange <BR>Revolution the necessary economic reforms in Ukraine would =
follow=20
<BR>immediately. About two years have past but, regrettably, not much =
has=20
<BR>changed since then, mainly because the politicians in power were =
busy=20
<BR>re-electing themselves.<BR><BR>Now, with a pragmatic and =
business-oriented=20
government, there is good hope <BR>that a successful tax reform will =
finally be=20
developed and implemented <BR>shortly and that the parliament will be =
supportive=20
this time.<BR><BR>So, what exactly needs to be done? First and most =
important of=20
all, the <BR>profit tax for all firms must be reduced substantially. =
Indeed, it=20
is the <BR>excessive tax bureaucracy that creates most of the problems =
for the=20
<BR>Ukrainian business environment.<BR><BR>For example, according to the =
mentioned survey of the World Bank, an average <BR>Ukrainian firm must =
make=20
about 98 payments, spending about 2,185 hours to <BR>comply with tax=20
requirements - which is much more than in most countries in <BR>the=20
world.<BR><BR>Such bureaucracy substantially reduces the attractiveness =
of=20
Ukraine for new <BR>foreign investors, slows down existing businesses =
and pushes=20
many businesses <BR>away to other countries or into the shadow=20
economy.<BR><BR>(A noteworthy factor, by various estimates, is that the =
shadow=20
economy in <BR>Ukraine is about 50 percent of its official GDP and a big =
portion=20
of it is <BR>due to a very excessive tax burden.)<BR><BR>Overall, if an =
adequate=20
tax reform is implemented liberalizing the entire <BR>country into one =
free=20
economic zone, then the resulting economic growth </DIV>
<DIV>can be enormous, generated by various sources.<BR><BR>The increase =
in=20
growth would be driven by an increase in the operations of <BR>existing =
firms=20
and due to the entry of new firms, especially foreign firms <BR>with =
superior=20
technologies.<BR><BR>Moreover, a substantial part of the shadow economy =
can come=20
to the light. </DIV>
<DIV>As a result, economic growth in the official real GDP in Ukraine =
can easily=20
<BR>reach 10-15 percent annually for the next three to five years, with =
a decent=20
<BR>economic performance afterward.<BR><BR>If such reforms are =
implemented, they=20
could create the true economic </DIV>
<DIV>miracle for Ukraine that we have been awaiting for the last 15 =
years. =20
-30-<BR>-----------------------------------------------------------------=
-----------------------------<BR>Valentin=20
Zelenyuk is a Senior Economist at Kyiv Economics Institute (KEI), =
<BR>assistant=20
professor of EERC at Kyiv-Mohyla Academy, and the Director of =
<BR>Ukrainian=20
Productivity and Efficiency Group (UPEG). the author thanks <BR>Natalya=20
Dushkevych for valuable comments. The views expressed in this =
<BR>article are=20
those of the author and do not represent the views of the <BR>above =
mentioned=20
organizations or people. </DIV>
<DIV>--------------------------------------------------------------------=
---------------------------</DIV>
<DIV>LINK: <A=20
href=3D"http://www.kyivpost.com/opinion/oped/26044/">http://www.kyivpost.=
com/opinion/oped/26044/</A></DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>[<A=20
href=3D"#i9">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>10<A=20
name=3Da10>.</A> <FONT color=3D#000080 size=3D4><STRONG>POLISH =
MINISTER URGES=20
U.S. INTEREST IN=20
PLANNED<BR>| &=
nbsp; &n=
bsp;=20
UKRAINE-POLAND OIL PIPELINE<BR></STRONG></FONT><BR>PAP news agency, =
Warsaw,=20
Poland, Tuesday, 6 Feb 07<BR><BR>WARSAW - The government will =
support the=20
activities of Polish companies <BR>aimed at securing their own crude oil =
Odessa-Brody-Plock pipeline project," Naimski said.<BR></FONT><BR>The =
ministry=20
of economy wants the cabinet to transfer supervision over oil <BR>and =
gas=20
transit companies to the economy ministry, from the ministry of =
<BR>state=20
treasury, Wozniak also said.<BR><BR>"The minister of economy, not the =
treasury=20
minister, is solely responsible <BR>for the country's energy security," =
he=20
declared. In order to ensure such <BR>security the minister of economy =
must have=20
necessary tools, he=20
added.<BR>---------------------------------------------------------------=
--------------------------------<BR>[<A=20
href=3D"#i10">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV>11<A name=3Da11>.</A> <FONT color=3D#000080>CASE-NEW =
HOLLAND OFFERS=20
STATE AGRICULTURAL<BR> LEASING COMPANY PROGRAM TO ORGANIZE =
PRODUCTION=20
<BR> =
OF=20
AGRICULTURAL MACHINERY IN UKRAINE <BR></FONT><BR>By Dmytro Kuzmin, =
Ukrainian=20
News Agency<BR>Kyiv, Ukraine, Friday, February 2, 2007<BR><BR>KYIV - =
<FONT=20
color=3D#800000>One of the world's largest producers of agricultural =
machinery,=20
<BR>the Case-New Holland company (CNH, the Netherlands) suggests the=20
<BR>Ukrahrolizynh national joint-stock leasing company to organize =
production=20
<BR>of the New Holland's agricultural machinery in Ukraine. The press =
service=20
<BR>of Ukrahrolizynh announced this in a statement.<BR></FONT><BR>As to =
the=20
press service, Ukrahrolizynh is negotiating the world's major =
<BR>producers of=20
agricultural machinery with an aim of developing financial <BR>programs =
for=20
procurement of machinery, that is not produced in Ukraine.<BR><BR>"Today =
the=20
most attractive and beneficial proposition, as to price and <BR>other =
criteria,=20
is that of CNH," the statement reads.<BR><BR><FONT =
color=3D#800000>According to=20
the press service, CNH proposes three stages of <BR>cooperation:<BR>[1] =
The=20
first one - shipping machinery to Ukraine for demand </FONT></DIV>
<DIV><FONT color=3D#800000> analysis, =
<BR>[2] the=20
second - organization of joint production and <BR>[3] the third - =
localization=20
of products at up to 50% of Ukrainian <BR> =
components.=20
<BR></FONT><BR>The press services reports no details of the Dutch side=20
suggestion.<BR>Case-New Holland is an international corporation, which =
produces=20
tractors, <BR>harvesters, excavators, loaders and other agricultural and =
construction <BR>machinery. Italian Fiat concern owns 91% of shares in=20
CNH.<BR><BR>As Ukrainian News earlier reported, the Cabinet of Ministers =
founded=20
the <BR>Ukrahrolizynh company in May 1999 to lease agricultural =
equipment to=20
<BR>agricultural enterprises instead of the State Leasing Fund. =
Ukrahrolizynh=20
<BR>ended 2004 with a net profit of UAH 0.2 million from net revenues of =
<BR>UAH=20
37=20
million.  =
; =
=20
-30-</DIV>
<DIV>--------------------------------------------------------------------=
---------------------------</DIV>
<DIV>NOTE: Case New Holland is a member of the Ukraine-U.S. =
Business=20
</DIV>
<DIV>Council in Washington, D.C.=20
<BR>---------------------------------------------------------------------=
--------------------------<BR>[<A=20
href=3D"#i11">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV><FONT color=3D#800000 size=3D4><STRONG>If you are receiving more =
than one copy=20
of the AUR please contact us. </STRONG></FONT></DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>12<A=20
name=3Da12>.</A> <FONT color=3D#000080>FORMATION OF COUNCIL OF =
INVESTORS (COI)=20
POSTPONED<BR> =
&=
nbsp; =20
List of members has not been approved<BR></FONT><BR>By Natalya =
Nepryakhina, The=20
Kommersant-Ukraine<BR>Kyiv, Ukraine, Friday, February 02, =
2007<BR><BR>KYIV - The=20
Kommersant-Ukraine laid its hands on a draft government<BR>resolution to =
set up=20
the Council of Investors, COI, under the cabinet of<BR>ministers and to =
be=20
headed by the premier [Prime Minister Viktor<BR>Yanukovych]. The draft =
had=20
already been approved by the government<BR>committee on economic=20
policy.<BR><BR>But the final go-ahead for COI couldn't be given because =
the list=20
of members<BR>and criteria for their selection do not exist. Experts =
fear that=20
COI will be<BR>made up mainly of businessmen close to the present=20
government.<BR><BR>In line with the government draft , a copy of which =
The K-U=20
has, the cabinet<BR>is out to set up another consulting and advisory =
body, COI.=20
The decision to<BR>set it up was approved on Monday, Jan. 29 by the =
committee on=20
economic<BR>policy.<BR><BR>For the record, late 2006 the cabinet =
disbanded the=20
Council on Foreign<BR>Economic Activities and the Council of =
Entrepreneurs,=20
creating the Council<BR>of National Associations of Producers and the =
Council=20
for the Development<BR>of Regions (See The K-U issues for 12.6.2006 and=20
12.22.2006).<BR><BR>As follows from the draft on COI, the new body will =
be=20
headed by Premier V.<BR>Yanukovych. He will approve the list of COI =
members and=20
the secretariat<BR>staff. COI secretariat is to be headed by the economy =
investment sector, work out mechanisms of partnership between<BR>the =
state and=20
entrepreneurs and propose investment projects for<BR>implementation in =
the=20
economy priority sectors.<BR> <FONT color=3D#800000=20
size=3D4><STRONG>LIST OF COI MEMBERS HAS NOT BEEN=20
APPROVED</STRONG></FONT><BR>However, as one of the most contentious =
issues, the=20
list of COI members,<BR>has not been approved, the government =
could not=20
pass the resolution to set<BR>up COI at its Feb. 1 =
session.<BR><BR>Government=20
officials who had worked out the draft, could not clarify to The<BR>K-U =
the=20
criteria for selecting COI members who can be qualified=20
as<BR>investors.<BR><FONT color=3D#800000 size=3D4><STRONG>ORIGINAL LIST =
OF 15-20=20
INVESTORS AND ORGANIZATIONS<BR></STRONG></FONT>The president of the =
State Agency=20
for Investments and Innovations (SAII)<BR>Viktor Ivchenko told The K-U =
that the=20
original list made up of 15-20<BR>Ukrainian and Russian investors, =
including, by=20
the way, the co-owner of the<BR>Industrial Union of Donbas, ISD, Serhy =
Taruta,=20
the owner of Interpipe Viktor<BR>Pinchuk and representatives of the =
European=20
Business Association and the US<BR>Chamber of Trade and Industry, was =
not=20
approved by the government.<BR><FONT color=3D#800000 =
size=3D4><STRONG>UKRAINIAN=20
BUSINESS, FOREIGN INVESTORS & EXPERTS</STRONG></FONT><BR>Our source =
in the=20
economy ministry has specified that the list will =
include<BR>representatives of=20
Ukrainian business, foreign investors, and experts.<BR>Notably, the =
Consultative=20
Council on Foreign Investments created in 2005<BR>under the president of =
Ukraine=20
was made up only of foreign investors.<BR><BR>"We are for a two-way =
street in=20
the relationship of business and government<BR>in order to solve the =
existing=20
problems," the source told The K-U.<BR>Meanwhile, another source in the=20
Ukrainian Center for Promoting Foreign<BR>Investments forecast that COI =
may=20
become an alternative to the presidential<BR>council.<BR><BR>According =
to=20
experts, an overcrowded list of COI members will trigger off =
a<BR>tug-of-war and=20
will not facilitate quick decisions.<BR><BR>"As evidenced by past =
experience,=20
the number of council members should be<BR>limited," our source in SAII =
says.=20
The more the number of members, the more<BR>the number of contradicting =
views=20
which cannot be moderated, he adds.<BR><BR>Analysts warn that the =
businessmen=20
close to the government will predominate<BR>on COI.<BR><BR>Thus, Head of =
the=20
Association of Jewelers of Ukraine Dmytro Vydolob says<BR>these =
government=20
insiders will only lobby for their interests: "I don't see<BR>that the=20
government is interested to promote competitiveness, and =
most<BR>probably, COI=20
will be made up of Ukrainian businessmen who will resolve<BR>their own =
problems=20
with cabinet=20
assistance." &=
nbsp; =20
-30-<BR>-----------------------------------------------------------------=
---------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.kommersant.ua/search-results.html">http://www.kommersa=
nt.ua/search-results.html</A><BR>----------------------------------------=
----------------------------------------------------------<BR>FOOTNOTE:&n=
bsp;=20
Article translated into English by Volodymyr=20
Hrytsutenko.<BR>---------------------------------------------------------=
--------------------------------------<BR>[<A=20
href=3D"#i12">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR> =20
<FONT color=3D#800000 size=3D4><STRONG> Send in =
a=20
letter-to-the-editor today. Let us hear from=20
you.<BR></STRONG></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>13<A=20
name=3Da13>.</A> <FONT color=3D#000080=20
size=3D4><STRONG>YANUKOVYCH TO BECOME HIS OWN=20
ADVISOR<BR></STRONG></FONT> <FONT =
color=3D#000080>Cabinet=20
of Ministers created Council of Investors (COI) Advisory =
Body</FONT><BR><BR>By=20
Antonina Bazhan, The Ekonomichna Pravda internet newsletter<BR>Business =
and=20
economy by Ukrayinska Pravda, </DIV>
<DIV>Kyiv, Ukraine, Thursday, Feb. 1, 2007<BR><BR>Premier Yanukovych =
continues=20
to build the pyramid of his power. This time,<BR>he set up an office =
that makes=20
him chieftain of Ukrainian investors. On Jan.<BR>24, 2007, the cabinet =
created=20
an advisory body, the Council of Investors<BR>(COI) affiliated with the =
Cabinet=20
of Ministers.<BR><BR>In all probability, COI is to become a close-knit =
team of=20
moneybags loyal to<BR>the government. The council will be headed - guess =
by=20
whom? - by V.<BR>Yanukovych.<BR><FONT color=3D#800000=20
size=3D4><STRONG> &n=
bsp; &nb=
sp; =20
REINVENTING THE WHEEL<BR></STRONG></FONT>According to The Ekonomichna =
pravda,=20
the Yanukovych government, acting<BR>quickly and without any notice, =
liquidated=20
the Council of Entrepreneurs<BR>(COE) set up by Pres Kuchma back in the =
90s=20
and.<BR><BR>To quote Economy Minister Volodymyr Makhuha, the reason =
behind this=20
was<BR>the Yanukovych government desire to raise, as he put it, the=20
low<BR>representative level of COE.<BR><BR>Accusations of the low =
representative=20
level of COE were definitely made<BR>against Yulia Tymoshenko who, when =
premier,=20
enrolled mainly small and<BR>medium-sized businessmen to sit on COE, =
unlike=20
former Pres. Kuchma who<BR>favored tycoons.<BR><BR>To judge by V. =
Makuha's=20
rather confused explanations, the cabinet questioned<BR>COE =
effectiveness,=20
saying its members, instead of representing the opinion<BR>of the =
business=20
community, were involved in lobbying for someone=20
else's<BR>interests.<BR><BR>Besides, Makuha explained, the cabinet had =
already=20
created a new<BR>representative body for entrepreneurs that had to =
replace COE.=20
Yet, at the<BR>time the minister could not recall its name. It turned =
out later=20
that Makuha<BR>meant COI.<BR><BR>Under the circumstances, it was unclear =
then=20
what the government motives for<BR>scrapping the 10-year old COE had =
been. To=20
have his way, it was sufficient<BR>for the premier either to enroll new =
members=20
who would suit him or to<BR>restore the format COE had in Kuchma days, a =
club=20
for Ukrainian moneybags<BR>like Rinat Akhmetov and Viktor=20
Pinchuk.<BR><BR>Anyway, the interests of the Party of Regions and its =
business=20
partners<BR>(major donors in the ruling coalition's war chest) could =
have been=20
insured<BR>by appointing one of the insiders to head COE who would then =
form=20
the<BR>docile council needed by the=20
coalition.<BR>  =
; =
=
council's goal is to represent the interests of various =
business<BR>associations=20
of which COI is to be made up, jointly draw up proposals =
and<BR>recommendations=20
for the government. Most likely, Viktor Yanukovych will<BR>now advise =
himself on=20
issues vital for businesses.<BR><BR>Moreover, in line with the COI =
statute,=20
information support for its<BR>activities will be provided also by =
officials, as=20
- guess who? - the<BR>minister of the economy is to be in =
charge.<BR><BR>It=20
seems the government will keep the Council of Investors on a very=20
short<BR>leash, both when appointing its members and when making =
decisions=20
or<BR>issuing press releases to cover its activities. Therefore, the=20
roles<BR>investors will play in the new council are very dim, more like =
those of=20
</DIV>
<DIV>supernumeraries in a theater.<BR><BR>However, all these arguments =
can be=20
logical only in a democracy. Given the<BR>Ukrainian realities, a council =
of=20
businessmen with its declared opaque and<BR>docile format may well be =
turned=20
into a cash cow for the incumbent head of<BR>the cabinet. This club of =
business=20
insiders may well become a base for the<BR>premier's economic=20
self-sufficiency.<BR><BR>Much will depend on who Viktor Yanukovych could =
enroll=20
to sit on COI and<BR>what kind of quid pro quos he could offer to his =
potential=20
sponsors.=20
-30-<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D<BR>FOOTNOTE: =20
Article translated into English by Volodymyr=20
Hrytsutenko.<BR>---------------------------------------------------------=
--------------------------------------<BR>[<A=20
href=3D"#i13">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>14<A=20
name=3Da14>.</A> <FO=
NT=20
color=3D#000080 size=3D4><STRONG>A FAIR LAND MARKET OR A LAND=20
GRAB?<BR></STRONG></FONT><BR>ANALYSIS & COMMENTARY: Gary Reusche =
&=20
Stephan Vitvitsky<BR>Kyiv Post Kyiv, Ukraine, Thursday, February 08=20
2007<BR><BR>The question of a land market in Ukraine has yet to make the =
transition from<BR>the Soviet past. Under the Soviet Union, private =
property was=20
illegal.<BR><BR>After 15 years of independence, land reform in Ukraine =
is still=20
unfulfilled.<BR>At stake is perhaps the best agricultural land in =
Europe, and=20
its current<BR>owners are the poor and mostly neglected rural=20
inhabitants.<BR><BR>The roots of the current situation are in the Soviet =
era and=20
are directly<BR>related to the Holodomor, or Great Famine. During =
the=20
reorganization of<BR>rural Ukraine by the Soviets, residents were =
uprooted, and=20
during the famine<BR>their population was decimated. In their place were =
established collective<BR>farms.<BR><BR>These collective farms are now =
history,=20
with the exception that the<BR>inheritors of the collective farms have =
ownership=20
of the land, but not the<BR>right to sell it. Roughly 7 million rural =
Ukrainians=20
have, or will soon<BR>have, land acts for approximately 25 million =
hectares of=20
the best farmland<BR>in Ukraine (and in Europe).<BR><BR>How to move from =
the=20
current situation to the future is the crux of the<BR>problem. Will =
there be=20
opportunities for the current residents to develop<BR>farms and small =
businesses=20
and create a decent life, or will vested<BR>interests and elites grab =
the land?=20
This drama will be played out in the<BR>upcoming years.<BR><BR>What =
seems to be=20
lacking is a vision for the future that gives realistic<BR>hope for the =
current=20
landowners to consolidate and utilize this land in ways<BR>that are =
viable in a=20
market economy.<BR><BR>In most transition economies, the creation of a =
land=20
market and clear<BR>property rights is essential to successful market =
economy=20
transformation.<BR><BR>Ideally, land that is bought and sold within a =
market=20
should change hands to<BR>those who seek to enhance productivity, =
efficiency,=20
and growth.<BR><BR>As discussed by agricultural expert Andriy Yarmark in =
a=20
recent interview in<BR>the Kyiv Post, a well-functioning land market =
also=20
encourages investment and<BR>increases revenue through land sales, which =
helps=20
create jobs and enhance<BR>rural livelihood.<BR><BR>The Ukrainian =
parliament's=20
recent prolongation of the land moratorium shows<BR>again the =
government's=20
reluctance to complete its market economy transition<BR>(though only the =
most=20
naive will think that this situation is not=20
benefiting<BR>someone).<BR><BR>Although Ukraine needs an open land =
market now,=20
it must be implemented in a<BR>context of programs designed to assist =
the rural=20
population to make the<BR>transition, and encourage small business=20
development.<BR><BR>If a small number of rich individuals or banks =
accumulate=20
large tracts of<BR>land by cheaply buying land from the rural poor, the =
outcome=20
would be at<BR>best an industrialized agriculture or at worst =
asset-stripping=20
and<BR>environmental degradation.<BR><BR>Such a land-owning oligarchy =
would reap=20
millions of dollars and gain huge<BR>political influence, and rural =
residents=20
would speed up their migration to<BR>cities.<BR><BR>If Ukraine is to =
create a=20
land market, the government must make sure that it<BR>is done legally,=20
transparently, and most importantly, for the good of the<BR>more than 15 =
million=20
people living in rural areas.<BR><BR>Extreme poverty rates are highest =
in rural=20
areas, with roughly one-third<BR>living under a dollar a day. Simply =
creating a=20
land market without certain<BR>conditions in place will not necessarily =
improve=20
the lives of Ukraine's<BR>poorest residents.<BR><BR>First, the =
government=20
initially should regulate land transactions in order<BR>to ensure a fair =
and=20
socially equitable distribution of land. Quotas may be<BR>placed that =
limit how=20
much land an individual may purchase, which would<BR>prevent oligarchs =
from=20
purchasing large tracts of land at low prices.<BR><BR>Incentives should =
be given=20
to the middle class and even to poor rural<BR>dwellers, such as tax =
breaks or=20
subsidies, to encourage them to purchase<BR>land or cultivate the land =
they=20
already own.<BR><BR>Opponents of this policy would scream that =
government=20
regulation would<BR>counter market reforms and lead to poor=20
results.<BR><BR>Nevertheless, at least in initial years, the government =
must=20
play a role in<BR>regulating the land market to ensure that land is =
distributed=20
fairly. Only<BR>when a land market has demonstrated functionality =
and=20
stability should the<BR>government step away.<BR><BR>Secondly, and of =
equal=20
importance, is that credit must be available to new<BR>landowners. For =
what is a=20
new landowner, especially if he is a former<BR>household plot farmer, =
going to=20
do with 20-30 hectares if he has no access<BR>to credit?<BR><BR>Without =
it, many=20
would be forced to sell - probably to a wealthy individual<BR>who can =
invest his=20
own money, thereby increasing the likelihood that a land<BR>oligarchy=20
develop.<BR><BR>Rural areas are currently vastly underserved by =
Ukraine's credit=20
market.<BR>Although many major banks, such as PrivatBank, Raiffeisen =
Bank Aval,=20
and<BR>ProCredit Bank, now offer small and micro-loan products, they=20
primarily<BR>focus on urban areas. Agricultural loan products also are =
limited=20
in their scope.<BR><BR>According to statistics from the Ukraine =
Micro-Lending=20
Program, an<BR>EBRD-sponsored program that helps banks create micro-loan =
cooperative system, known in Ukraine<BR>as credit unions and cooperative =
encouraging signs for potential landowners. Therefore, banks,<BR>NGOs, =
and=20
credit unions should be encouraged to extend credit in small =
towns<BR>and rural=20
areas, helping fill a major void in Ukraine's credit =
market.<BR><BR>Lastly,=20
there must be strong institutions and courts in place in order =
for<BR>land=20
transactions to be processed efficiently, ensuring that laws =
are<BR>upheld, and=20
disputes settled. A land market without institutions would lead<BR>to=20
chaos.<BR><BR>Transactions would be made very slowly, disputes would be =
settled=20
through<BR>bribes and threats, and individuals would easily disobey the =
law.=20
This state<BR>would be devastating for rural areas and would further =
encourage=20
corruption,<BR>already a major problem in Ukraine.<BR><BR>Unfortunately, =
there=20
is no quick and easy solution that can solve the<BR>current land =
dilemma. It is=20
high time that the government, along with NGOs<BR>and development =
agencies, took=20
steps to ensure that institutions and courts<BR>are functional and =
transparent;=20
as well as ready to handle the huge workload<BR>once a land market is=20
established. &=
nbsp; =20
-30-<BR>-----------------------------------------------------------------=
----------------------------<BR>Gary=20
Reusche is rural development expert and former team leader of an<BR>EU =
project=20
in Ukraine that supported SME development in rural areas.<BR>Stephan =
Vitvitsky=20
is here as a Fulbright Research Fellow 2006-2007,<BR>researching rural =
economic=20
development.<BR>---------------------------------------------------------=
-------------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.kyivpost.com/opinion/oped/26043/">http://www.kyivpost.=
com/opinion/oped/26043/</A><BR>------------------------------------------=
-----------------------------------------------------<BR>[<A=20
href=3D"#i14">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>15<A=20
name=3Da15>.</A> <FONT color=3D#000080 size=3D4><STRONG>UKRAINE: THE =
ECONOMIC EFFECTS=20
OF CORRUPTION<BR><BR></STRONG></FONT>ANALYSIS & COMMENTARY: By =
Oleksandr=20
Shepotylo<BR>The Ukrainian Observer magazine #228<BR>The Willard Group, =
Kyiv,=20
Ukraine, February 2007<BR><BR>Recently, a friend of mine was crossing =
the=20
Russian-Ukrainian border by<BR>train. The customs officer knocked at the =
door of=20
his carriage compartment<BR>and asked for his documents. After careful=20
examination, the officer said<BR>that the registration had expired and =
my friend=20
was not allowed to cross the<BR>border.<BR><BR>That would be the end of =
story if=20
it were the US-Canadian border because<BR>my friend would be forced to =
exit the=20
train. The end of this story had,<BR>however, a happy ending.<BR><BR>The =
officer=20
was waiting and looking at my friend as if he wanted to hear<BR>some=20
explanations hinting that something could be done to resolve =
the<BR>problem.=20
After short negotiations, the officer asked my friend to=20
follow<BR>him.<BR><BR>Shortly, the friend came back with the stamp in =
the=20
passport that allowed<BR>him to cross the border. This example =
illustrates a=20
more general point that<BR>the rules are not strictly enforced in a =
country with=20
a high level of<BR>corruption such as Ukraine.<BR><BR>To achieve our =
goals we=20
are ready to break the rules and bribe government<BR>officials who are =
supposed=20
to protect the law. Officials, in their turn, expect </DIV>
<DIV>that we behave that way and force us to give bribes.<BR><BR><FONT=20
color=3D#800000>The vicious circle is very hard to break because it has =
become=20
ingrained in<BR>the Ukrainian culture and governs people's cultural code =
of=20
behavior.<BR><BR>The common knowledge is that everybody does it, so why =
should=20
you be any<BR>different? Taking bribes is part of the routine work of =
policemen,=20
customs<BR>officials and municipal workers.<BR><BR></FONT>Adjusting =
numbers for=20
the cost of living, Ukraine came in the second<BR>place - not far behind =
Ghana -=20
in annual bribes paid by households </DIV>
<DIV>according to the results of a public opinion survey of =
about<BR>55,000=20
people in 69=20
countries. <BR>  =
; =
<FONT=20
color=3D#800000 size=3D4><STRONG> HOW COSTLY IS=20
CORRUPTION<BR></STRONG></FONT>How costly is corruption for the welfare =
of a=20
country? Oddly enough, the<BR>mere fact of bribery has no direct impact =
on a=20
country's gross domestic<BR>product (GDP).<BR><BR>However socially =
costly, the=20
bribe is a transfer of money from one<BR>individual to another that has =
an=20
impact on distribution of income but<BR>leaves the level of GDP =
unchanged (in=20
fact, if it was registered, it would<BR>even increase GDP).<BR><BR>Does =
that=20
mean that corruption has no impact on economic growth?<BR>Of course, the =
answer=20
is negative.<BR><BR>Paolo Mauro - one of the first economists who =
empirically=20
studied the<BR>consequences of corruption - demonstrated that corruption =
reduces=20
economic<BR>growth in a country by 0.5-1 percent a year on average. For =
Ukraine,=20
This<BR>sum is comparable with the annual budget spent on education in=20
Ukraine.<BR><BR>More importantly, it makes an even greater difference =
for=20
economic growth in<BR>the long run because losses accumulate over time. =
The=20
negative impact of<BR>corruption on economic growth comes from the very=20
significant influence of<BR>corruption on investment rates (it can be as =
high as=20
5 percent).<BR><BR>In addition, corruption distorts distribution of =
resources=20
across<BR>industries. Countries with high corruption levels invest =
relatively=20
more<BR>resources in construction and less in education and social=20
programs.<BR><BR>A corrupt government official would prefer to finance a =
big=20
investment<BR>project with very uncertain costs where it is difficult to =
monitor<BR>expenditures - i.e. build a highway or an airport - rather =
then give=20
money<BR>for educational programs that are more transparent and easier =
to=20
control.<BR> &=
nbsp; <FONT=20
color=3D#800000 size=3D4><STRONG>CORRUPTION PERCEPTION =
INDEX<BR></STRONG></FONT>In=20
2006, Ukraine - together with the Dominican Republic, Georgia,=20
Mali,<BR>Mongolia, and Mozambique - occupied places 99 in the annual =
report on=20
the<BR>corruption perception index provided by Transparency=20
International.<BR><BR>The problem of high corruption in Ukraine is well=20
recognized by all parts </DIV>
<DIV>of the political spectrum. Party leaders of the ruling coalition =
and=20
the<BR>opposition publicly announced that fighting corruption should be =
a=20
priority<BR>in the government agenda.<BR><BR>On December 5, 2006, the =
Government=20
of Ukraine and Millennium Challenge<BR>Corporation - a U.S. program that =
seeks=20
to reduce poverty by rewarding<BR>countries for establishing open =
markets and=20
following other good governance<BR>practices - signed an agreement =
estimated at=20
US $500 million as the<BR>threshold program for development of Ukraine =
that=20
would be partially spent<BR>to finance an anti-corruption campaign as a =
part of=20
the threshold program<BR>for Ukraine.<BR><BR>Prime Minister Viktor =
Yanukovych=20
publicly stated that figure following a<BR>meeting with US Secretary of =
State=20
Condoleezza Rice. "The program will<BR>envisage actively combating =
corruption,=20
which will be a priority of the<BR>current Government," Yanukovych=20
said.<BR> &nbs=
p; <FONT=20
color=3D#800000 size=3D4><STRONG>BEST WAY TO REDUCE=20
CORRUPTION?<BR></STRONG></FONT>At the same time, Ukrainian politicians =
are very=20
much divided on the<BR>question of the best way to reduce =
corruption.<BR><BR>It=20
was very clearly demonstrated during the "Svoboda Slova", a popular =
TV<BR>show=20
where the top government officials, parliamentarians, and =
experts<BR>discuss=20
important political and economic topics in front of a large<BR>audience. =
The=20
program was devoted to discussion on corruption in Ukraine<BR>and was =
aired in=20
December 2006.<BR><BR>While the minister of defense expressed the =
opinion that=20
the best way to get<BR>rid of corruption in the army is to subcontract =
all=20
functions not directly<BR>related to defense to private companies, the =
minister=20
of transportation<BR>argued that more government controls and more =
detailed=20
regulations is the<BR>way to lower the corruption level in the =
transportation=20
sector.<BR><BR>In my opinion the minister of defense has a better =
strategy to=20
fight<BR>corruption. Winston Churchill once said: "If you have ten=20
thousand<BR>regulations you destroy all respect for the =
law."<BR><BR>Simplifying=20
cumbersome and lengthy laws and regulations, giving more<BR>economic =
freedom to=20
private companies, local governments, and organizations<BR>and getting =
rid of=20
politically driven decisions would substantially reduce<BR>corruption=20
opportunities for government officials and =
bureaucrats.<BR> <FONT=20
color=3D#800000 size=3D4><STRONG> DECENTRALIZED COUNTRIES LOWER=20
CORRUPTION<BR></STRONG></FONT>Raymond Fisman and Roberta Gatti, world =
experts in=20
the study of corruption,<BR>have demonstrated that more decentralized =
countries=20
have lower levels of<BR>corruption.<BR><BR>Therefore, the administrative =
reform=20
that gives more budgetary expenditures<BR>to be divided at the local =
level=20
suggested by the Socialist Party could be<BR>beneficial for Ukraine =
because it=20
would spur political competition between<BR>local governments, improve =
their=20
performance and lower corruption.<BR><BR>It is difficult to find the =
best=20
anti-corruption roadmap for in Ukraine.<BR>However, the establishment of =
a=20
strategy for this purpose should not be<BR>decided in a narrow circle of =
government officials or the ruling =
coalition's<BR>leaders.<BR><BR>According to=20
the Global Corruption Barometer report, political parties are<BR>the =
most=20
corrupt institutions of society as shown in Graph 1. Therefore, =
it<BR>would be=20
very dangerous to leave the politicians on their own in a hope =
that<BR>they will=20
miraculously solve all our problems.<BR><BR>For an anti-corruption =
campaign to=20
be a success, the government should work<BR>out the strategy in =
collaboration=20
with media, non-government organizations,<BR>and educational=20
institutions.<BR><BR>And if, on a wonderful day, people in power and the =
army of=20
state<BR>bureaucrats start behaving as role models for us by strictly =
following=20
all<BR>rules and regulations they have created for ordinary people, we =
would=20
become<BR>better citizens and stop cutting lines, violating traffic =
rules, and=20
bribing<BR>officials in an attempt to solve our everyday=20
problems. &nbs=
p;=20
-30-<BR>-----------------------------------------------------------------=
-----------------------------<BR>Oleksandr=20
Shepotylo, Ph.D., is an assistant professor of economics at<BR>EERC and =
Kyiv=20
Economics Institute. The views expressed in this article<BR>are those of =
the=20
author and do not represent the views of=20
above-mentioned<BR>organizations.<BR>------------------------------------=
-----------------------------------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.ukraine-observer.com/articles/228/991">http://www.ukra=
ine-observer.com/articles/228/991</A>=20
<BR>---------------------------------------------------------------------=
--------------------------<BR>[<A=20
href=3D"#i15">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>16<A=20
name=3Da16>.</A> <FONT color=3D#000080>LARGE U.S. STEEL PRODUCER =
NUCOR STARTS=20
PURCHASE </FONT></DIV>
<DIV><FONT color=3D#000080>OF PIG IRON FROM DONETSK REGION =
METALLURGICAL=20
PLANT</FONT><BR><BR>Ukrainian News Agency, Kyiv, Ukraine, Thu, February =
1,=20
2007<BR><BR>KYIV - One of the largest steel producers in the United =
States,=20
Nucor <BR>corporation has started purchase of pig iron from =
Makiivka-based=20
<BR>metallurgical plant (Donetsk region). Plant press service has =
disclosed this=20
<BR>to Ukrainian News.<BR><BR>According to press service representative, =
in=20
February, Makiivka plant has <BR>to supply 65,000 tons of pig iron to =
the=20
American corporation. As Ukrainian <BR>News earlier reported, in =
September 2006,=20
Makiivka plant reported on Nucor <BR>intention to purchase pig =
iron.<BR><BR>In=20
2007, Makiivka metallurgical plant intends to increase pig iron =
<BR>production=20
by 55% or 0.71 million tons to 2 million tons.<BR>In January 2006, the =
plant=20
produced 152,600 tons of pig iron, of them 50,400 <BR>tons were reserved =
for the=20
further sales.<BR><BR>Makiivka metallurgical plant closed joint-stock =
company=20
was founded in 2004 <BR>as part of a financial recovery program for the =
Makiivka=20
metallurgical mill <BR>open joint-stock company.<BR><BR>According to the =
Agency=20
for Development of the Stock Market's <BR>Infrastructure, as of March =
2006,=20
Zorino trading Limited, Zelino <BR>Commercional Limited (both based in =
Great=20
Britain), Mokrad Trading Ltd. <BR>(B.V.I.), and Kellor Enterprises LLS =
(USA)=20
each held 18.7943% in the plant.<BR><BR>The Kryvyi Rih-based Finoks =
company is=20
the keeper of these shareholdings <BR>which comprise 75.1771% of the =
shares.=20
Finoks is also the keeper of the <BR>Inhulets OMEP's =
shares.<BR><BR>According to=20
the Agency for the Development of Stock Market's <BR>Infrastructure, as =
of March=20
2006, 24.8229% of the Makiivka metallurgical <BR>plant's shares belonged =
to=20
Makiivka metallurgical mill. The plant ended 2005 <BR>with a loss of UAH =
235.41=20
million and net revenues of UAH 1,540.21 million.<BR><BR>Russian =
businessman=20
Vadim Novinsky's Smart Group (Dnipropetrovsk) controls <BR>Makiivka=20
metallurgical plant. 60.857% of the shares in the Makiivka =
<BR>metallurgical=20
mill belong to the State Property Fund of Ukraine<BR></DIV>
<DIV>--------------------------------------------------------------------=
---------------------------</DIV>
<DIV>[<A href=3D"#i16">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>17<A=20
name=3Da17>.</A> <FONT color=3D#000080>NETHERLANDS CO =
INVESTS IN UKRAINE=20
FOR FIRST TIME<BR> Acquires over 50% of Styrol chemical =
concern=20
(Horlivka, Donetsk region)<BR></FONT><BR>Ukrainian News Agency, Kyiv,=20
Ukraine, Friday, February 2, 2007 <BR><BR>KYIV - The Antimonopoly =
Committee=20
of Ukraine has authorized Dotterbloem <BR>Holding B.V. (the Netherlands) =
to=20
acquire over 50% of the shares in the <BR>Styrol chemical concern =
(Horlivka,=20
Donetsk region). The press service of the <BR>Antimonopoly Committee =
announced=20
this to Ukrainian News.<BR><BR>Dotterbloem Holding B.V. performs =
investment and=20
management operations. </DIV>
<DIV>It has never operated on Ukrainian territory. The company submitted =
the=20
<BR>relevant application to the Antimonopoly Committee on December=20
18.<BR><BR>The press service was unable to say whether Dotterbloem =
Holding B.V.=20
has <BR>already acquired over 50% of Styrol.<BR><BR>According to the =
information=20
available as of January, the Styrolkhiminvest <BR>limited liability =
company=20
owned 50.01% of the shares in Styrol while <BR>individuals owed =
14.19%. As=20
Ukrainian News earlier reported, Styrol intends <BR>to invest USD 50-80 =
million=20
in production development in 2007.<BR><BR>In addition to developing its =
core=20
production operations, Styrol plans to <BR>actively develop additional=20
operations such as production of pharmaceutical <BR>goods and=20
polystyrene.<BR><BR>Styrol ended 2005 with a net profit of UAH 513.13 =
million.=20
Its net revenues <BR>increased by UAH 622.58 million or 26.08% to UAH =
3,009.95=20
million in 2005, <BR>compared with=20
2004. &n=
bsp; &nb=
sp; =20
-30-<BR></DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>[<A=20
href=3D"#i17">return to index</A>] Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR><FONT=20
color=3D#800000> <FONT size=3D4>You are welcome =
to send=20
us names for the AUR distribution=20
list.</FONT><BR></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>18<A=20
name=3Da18>.</A> <FONT color=3D#000080>USAID REALIZING TWO-YEAR $8M =
PROJECT TO=20
DEVELOP<BR> =
TRADE,=20
INVESTMENT AND BUSINESS IN UKRAINE<BR><BR></FONT>Interfax Ukraine =
Economic,=20
Kyiv, Ukraine, Wed, January 31, 2007<BR><BR>KYIV - The United =
States Agency=20
for International Development (USAID) </DIV>
<DIV>has presented a project on trade, investment and business =
acceleration in=20
<BR>Ukraine (TIBA). According to a press release drawn up for the =
presentation,=20
<BR>the budget of the two-year project will be $8 million.<BR><BR>The =
project is=20
aimed at providing technical aid to the Ukrainian government <BR>and the =
private=20
sector in building trade, investment and business capacity, <BR>which =
is, in=20
turn, would accelerate Ukraine's joining the international=20
<BR>economy.<BR><BR>The project will develop trade in commodities and =
services=20
according to the <BR>requirements of the World Trade Organization and =
help=20
conduct regulatory <BR>reform aimed at building a favorable legal and =
business=20
environment to <BR>develop small and medium business in =
Ukraine.<BR><BR>Booz=20
Allen Hamilton President Don Pressley, presenting the project, said =
<BR>that it=20
would promote the development of private business in Ukraine.<BR><BR>He =
said=20
that the development of small and medium business requires that they =
<BR>have=20
access to the international markets, and that the government should=20
<BR>interfere less.<BR><BR>Pressley said that the USAID project would =
promote=20
further aid for Ukraine's <BR>joining the World Trade Organization, =
promote aid=20
to government institutions <BR>after Ukraine joins the organization, and =
promote=20
aid to improve the <BR>environment for the development of=20
business.<BR><BR>Pressley said that in particular, this aid concerns a =
cut in=20
the cost of <BR>running a business and a cut in the number of laws that =
regulate=20
this <BR>sphere. "The legal regulation should be cut to the =
minimum=20
level," he said.<BR><BR>In turn, Hennadiy Bilous, the deputy head of the =
state=20
committee for <BR>regulatory policy and entrepreneurship of Ukraine, =
said that=20
the two-year <BR>project would improve the investment climate in Ukraine =
and the=20
situation in <BR>the trade sphere.<BR><BR>He said that the Ukrainian =
government=20
is improving regulatory policy in <BR>entrepreneurship, the permit =
system and=20
the registration of procedures, and <BR>is relaxing requirements when =
starting a=20
business.<BR><BR>Earl Gast, Director for the USAID Regional Mission in =
Ukraine,=20
Moldova and <BR>Belarus, said that the new USAID project would build on =
the=20
achievements of <BR>the previous USAID BIZPRO project.<BR><BR>Gast said =
that the=20
project will improve investment activities, and the <BR>situation with =
the=20
regulation of business. "We hope that business management </DIV>
<DIV>will improve," he said.<BR><BR>Commenting on the investment climate =
in=20
Ukraine, Gast said that a gradual <BR>improvement over all the years of=20
Ukraine's independence has been seen.<BR><BR>Gast said that an increase =
in=20
foreign investment in Ukraine and interest not <BR>only from U.S. but =
also=20
European investors confirms this improvement. In <BR>particular, he said =
that=20
there is investment growth in Ukraine from Eastern <BR>Europe, =
especially=20
Poland, the Czech Republic and Baltic countries.</DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>[<A=20
href=3D"#i18">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>19<A=20
name=3Da19>.</A> <FONT color=3D#000080>POLISH ALUMINUM =
KETY TO=20
LAUNCH PRODUCTION IN<BR> UKRAINE IN =
10 DAYS;=20
EXPECTS FURTHER INVESTMENTS<BR><BR></FONT>Interfax Ukraine Economic, =
Kyiv,=20
Ukraine, Thursday, February 1, 2007<BR><BR>WARSAW - Polish aluminum firm =
Grupa=20
Kety expects to launch production in <BR>Ukraine within ten days and =
will=20
consider expanding manufacturing facilities <BR>in that country, Chief =
Executive=20
Dariusz Manko told reporters Thursday. "In <BR>Ukraine, production =
starts in ten=20
days," Manko said.<BR><BR>Kety said in early 2006 it would spend PLN 40 =
million=20
on the installation of <BR>an extruded-products press in Ukraine and =
Manko=20
expects further investments <BR>in the underserved Ukrainian =
market.<BR><BR>"We=20
have a large order-book [in Ukraine], the market is very receptive," the =
<BR>CEO=20
said. "That is why investments in just one press is unlikely to be the=20
<BR>extent of=20
it." &nb=
sp; &nbs=
p;  =
; =20
-30-</DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>[<A=20
href=3D"#i19">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>20<A=20
name=3Da20>.</A> <FONT color=3D#000080 size=3D4><STRONG>FRENCH =
GROUP DANONE TO=20
INVEST OVER EUR 20 M </STRONG></FONT></DIV>
<DIV><FONT color=3D#000080=20
size=3D4><STRONG> &n=
bsp; =20
IN KHERSON DAIRY PLANT CJSC RODYCH<BR></STRONG></FONT><BR>Interfax =
Ukraine=20
Economic, Kherson, Ukraine, Friday, January 26, 2007<BR><BR>KHERSON - =
French=20
group Danone is planning to invest over EUR 20 </DIV>
<DIV>million in the modernization of Kherson-based CJSC Rodych dairy =
plant,=20
</DIV>
<DIV>he Kherson mayor's press service reported.<BR><BR>The sum was =
discussed=20
ruing a meeting between Kherson Mayor Volodymyr</DIV>
<DIV>Saldo and Director General of Danone Ltd. for Ukraine Stephan=20
Batoux.<BR><BR>The investment will be conducive to the launch of such =
dairy=20
brands as <BR>Activia, Danissimo and Danone yoghurts, the source =
said.<BR><BR>To=20
launch the production of the new brands, French-produced equipment =
</DIV>
<DIV>will be installed at the plant to process locally produced cheese. =
At the=20
same <BR>time, the Rodych plant will continue producing dairy produce =
under its=20
own <BR>brand Vesely Pastushok.<BR><BR>As was reported earlier, on =
September 7,=20
2006, Danone, which has been <BR>working on the Ukrainian market since =
1999,=20
announced the acquisition of <BR>100% of CJSC Rodych dairy plant in =
Ukraine. The=20
deal was completed on <BR>October 2, 2006.<BR><BR>Danone also announced =
plans=20
for 2007 to start the modernization of the <BR>plant's production =
facilities and=20
increase dairy production from 30,000 to <BR>200,000 tonnes a year =
within 10=20
years. &=
nbsp; =20
-30-<BR>-----------------------------------------------------------------=
-----------------------------<BR>[<A=20
href=3D"#i20">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR> <FONT=20
color=3D#800000> <FONT size=3D4>Please contact us if you no =
longer=20
wish to receive =
the AUR </FONT></FONT></DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>21<A=20
name=3Da21>.</A> <FONT color=3D#000080>AUSTRIA'S MEINL LAND LTD TO =
MAKE FIRST=20
INVESTMENT IN<BR> UKRAINE WITH EUR 150 MILLION =
IN TRADE=20
CENTER IN ODESA<BR></FONT><BR>Interfax Ukraine Economic, Kyiv, Ukraine, =
Sunday,=20
January 25, 2007<BR><BR>KYIV - Austria's Meinl European Land Ltd. =
developing=20
company plans to </DIV>
<DIV>invest around EUR 150 million in building a trade center in Odesa,=20
according </DIV>
<DIV>to a company press release.<BR><BR>The total area of the trade =
center will=20
be 60,000 square meters, reads the<BR>release. The trade center is to be =
completed in late 2008. The profitability of </DIV>
<DIV>investment is over 12%, the company says.<BR><BR>According to the =
release,=20
Meinl European Land Ltd. at present does not<BR>invest in Ukraine, =
although the=20
company is consulting with local developers<BR>and researching possible =
future=20
investments.<BR><BR>The company is considering options for investment in =
the=20
development </DIV>
<DIV>of new directions in the real estate sphere and the building of =
trade=20
centers.<BR><BR>Meinl European Land Ltd. operates in the real estate =
sphere and=20
invests and<BR>develops real estate in various countries. At present, =
the=20
company plans to<BR>develop in the Czech Republic, Hungary, Latvia, =
Estonia,=20
Poland, Romania,<BR>Russia, Slovakia, Turkey, Bulgaria and =
Ukraine.<BR><BR>As of=20
September 30, 2006, the company's investment portfolio was EUR </DIV>
<DIV>1.233 billion, which included 150 projects in seven countries with =
revenues=20
</DIV>
<DIV>from leasing of around EUR 105=20
million.  =
; =20
-30-<BR>-----------------------------------------------------------------=
-------------------------------<BR>[<A=20
href=3D"#i21">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>22<A=20
name=3Da22>.</A> <FONT color=3D#000080>UKRAINE: NESTLE TO INVEST =
OVER $50 MLN=20
IN NEW PLANT </FONT></DIV>
<DIV><FONT=20
color=3D#000080> &nb=
sp; =20
Will employ 1,200 workers in Volinskiy =
Region<BR></FONT><BR>Interfax-Ukraine,=20
Kyiv, Ukraine, Wednesday, Jan 24, 2007<BR><BR>LUTSK - Swiss food giant =
Nestle=20
plans to invest over $50 million in building<BR>a new food plant in =
Ukraine's=20
Volinskiy region. The company signed the </DIV>
<DIV>relevant investment agreement on Tuesday, the press center of the=20
Volinskiy</DIV>
<DIV> regional council said.<BR><BR><FONT color=3D#800000>The new =
plant will=20
produce sauces, ketchup and baby food and will employ<BR>1,200=20
workers.<BR></FONT><BR>The press release also states that at an =
extraordinary=20
sitting of the<BR>regional council on Monday it was decided to provide =
34=20
hectares of land </DIV>
<DIV>for the plant.<BR><BR>Nestle Ukraine was set up in 1994 and in 1998 =
acquired a controlling stake<BR>in the confectionery company Svitoch, =
and in=20
November 2003 - 100% of<BR>Volynholding, which operates under the trade =
name=20
Torchinproduct.=20
rd<BR>-------------------------------------------------------------------=
-----------------------------</DIV>
<DIV>[<A href=3D"#i22">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>23<A=20
name=3Da23>.</A> <FONT color=3D#000080>HUNGARIAN SWEETS =
MAKER BONBONETTI=20
EXPECTS A </FONT></DIV>
<DIV><FONT color=3D#000080> MAJOR BOOM IN EXPORTS TO =
RUSSIA AND=20
UKRAINE IN 2007<BR><BR></FONT>Interfax Central Europe, Budapest, =
Hungary, Thu,=20
January 25, 2007<BR><BR>BUDAPEST - Hungary's largest sweets producer =
Bonbonetti=20
Group, fully </DIV>
<DIV>owned by Austria's Raiffeisen CEE Equity Fund LP, is planning to =
further=20
</DIV>
<DIV>increase exports to the Central and Eastern European (CEE) region =
and=20
</DIV>
<DIV>to Russia, CEO Sandor Santa told Interfax in an =
interview.<BR><BR><FONT=20
color=3D#800000>"One of our main goals of our three-year strategy is to =
increase=20
exports in<BR>the CEE region," Santa said. "We also expect a major boom =
in=20
exports to<BR>Russia and Ukraine in 2007."<BR></FONT><BR>Bonbonetti is =
set to=20
register revenues of more than HUF 12 billion in 2006,<BR>of which =
export=20
revenues represent almost 30%, Santa said. Exports are<BR>expected to =
increase=20
by more than HUF 400 million in 2007, Santa added.<BR><BR>Increasing the =
weight=20
of exports in group-level revenues has a great<BR>importance in the =
medium-term=20
goal of the company, Santa stressed, as the<BR>move is necessary in =
order to=20
remain competitive in the region.<BR><BR>"Taking an export-oriented path =
can be=20
a way out for Hungarian firms, as the<BR>Hungarian market is narrowing =
and the=20
macroeconomic environment is not as<BR>favorable as in the surrounding=20
countries," Santa said. "However, we are<BR>ready to compete by offering =
quality=20
and high standard of services."<BR><BR>The company currently exports =
sweets to=20
48 countries around the world<BR>including China and Mongolia, with the =
CEE=20
region and Eastern Europe among<BR>the most important markets, currently =
factory, which makes Bonbonetti the most<BR>important player on the =
domestic=20
market of intermediary products, supplying<BR>the Netherlands' Friesland =
and=20
France's Danone, Santa =
said. =20
-30-<BR>-----------------------------------------------------------------=
--------------------------------</DIV>
<DIV>[<A href=3D"#i23">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>24<A=20
name=3Da24>.</A> <FONT color=3D#000080> BIODIESEL OF =
BESSARABIA TO=20
LAUNCH=20
BIOETHANOL<BR>  =
; =20
MINI-PLANT IN ODESA REGION BY FEBRUARY<BR><BR></FONT>Interfax =
Ukraine=20
Economic, Kyiv, Ukraine, Friday, January 26, 2007<BR><BR>ODESA - =
Biodiesel of=20
Bessarabia Ltd. on January 29, 2007, is to launch a<BR>mini-plant to =
produce=20
biodiesel in Saratsky district of Odesa region, Odesa<BR>Regional =
Governor Ivan=20
Plachkov reported.<BR><BR><FONT color=3D#800000>The plant whose =
production will be=20
7,000 tonnes of biodiesel is the first<BR>enterprise of this kind in the =
region,=20
however, in future, when their number<BR>grows, prices of fuel are =
expected to=20
decline, Plachkov said. "Bioethanol<BR>will help smooth fuel price =
hikes," he=20
said.<BR></FONT><BR>As was reported, in 12 months after the launch of =
the=20
factory, Biodiesel of<BR>Bessarabia Ltd. is to double the plant's =
capacity to=20
15,000 tonnes a year.<BR>The number of jobs created under the project =
will grow=20
from 15 to 80 people.<BR>The company also plans to build an oil and fat =
factory=20
in the district.<BR><BR>As raw materials, Biodiesel of Bessarabia will =
use=20
rapeseed crops grown in<BR>Saratsky region, which expanded areas under =
crops in=20
2006 by four times to<BR>12,000=20
ha. &nbs=
p;  =
; =
=20
-30-</DIV>
<DIV>--------------------------------------------------------------------=
----------------------------<BR>[<A=20
href=3D"#i24">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>25<A=20
name=3Da25>.</A> <FONT color=3D#000080>UKRAINIAN PRESIDENT MEETS =
WITH U.S.=20
HELICOPTER<BR>  =
; =20
MAKER SIKORSKY AIRCRAFT CORPORATION<BR></FONT><BR>Interfax-AVN military =
news=20
agency website, Moscow, in English 18 Jan 07<BR>BBC Monitoring Service, =
United=20
Kingdom, Thursday, Jan 18, 2007<BR><BR>KYIV - Ukrainian President Viktor =
Yushchenko and Sergei Sikorsky </DIV>
<DIV>discussed cooperation between Ukrainian aircraft manufacturing =
firms </DIV>
<DIV>and Sikorsky Aircraft Corporation. Sergei Sikorsky, a son of the=20
world-</DIV>
<DIV>renowned inventor and designer, is a cofounder of Sikorsky Aircraft =
</DIV>
<DIV>Corporation.<BR><BR>Yushchenko said at the meeting that the =
powerful=20
technological and<BR>industrial potential of Ukrainian aircraft =
manufacturing=20
companies could<BR>serve as a good foundation for the Sikorsky Aircraft=20
Corporation's activity<BR>in Ukraine, the presidential press service =
said on=20
Thursday [18 January].<BR><BR>Yushchenko also confirmed his position =
regarding=20
the need to open a</DIV>
<DIV>museum for Igor Sikorsky in Kiev. Igor Sikorsky was born in Kiev in =
1889.=20
</DIV>
<DIV>He emigrated to the US in 1919, where he founded the Sikorsky Aero =
</DIV>
<DIV>Engineering Corporation in=20
1929. &n=
bsp; =20
-30-<BR>-----------------------------------------------------------------=
------------------------------<BR>[<A=20
href=3D"#i25">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>26<A=20
name=3Da26>.</A> <FONT color=3D#000080=20
size=3D4><STRONG>UKRAINIANS: THE INFERIORITY=20
SYNDROME?<BR></STRONG></FONT><BR>ANALYSIS & COMMENTARY: By Volodymyr =
Senchenko<BR>The Ukrainian Observer magazine, Issue 227<BR>The Willard =
Group,=20
Kyiv, Ukraine, January 2007<BR><BR>Foreigners are surprised when a =
Ukrainian=20
newscaster tells viewers at the<BR>end of his program: "Respect =
yourself, you=20
deserve it."<BR><BR>Based on their own life experience, foreigners may =
think=20
self-esteem is<BR>innate and therefore Ukrainians do not need to be =
daily=20
reminded that they<BR>should respect themselves.<BR><BR>However, such a =
phrase=20
is quite useful to Ukrainians. For our inferiority<BR>complex, which =
makes us=20
feel second-rate, petty and unimportant, is<BR>programmed and has =
penetrated our=20
outlooks and minds so deeply that </DIV>
<DIV>almost every individual Ukrainian has this ugly, shameful=20
trait.<BR><BR>Average Ukrainian citizens have to suppress their =
indecisiveness=20
before<BR>attracting attention.<BR><BR>Foreigners often notice this=20
characteristic behavior at customs. Ukrainians<BR>act humbly and show =
fearful=20
respect towards uniformed strangers simply<BR>performing their =
professional=20
duties. They act as if they conceal something<BR>or are guilty and so =
want to=20
appear better and more modest than they are.<BR><BR>A foreign friend =
once asked=20
me why I shunned customs officers. He did not<BR>know I had been taught =
since=20
childhood I was indebted to my motherland and<BR>that I was a mere screw =
in the=20
gigantic machine of the Soviet state, and<BR>that only top officials =
were=20
entitled to drive those screws in any way =
they<BR>wanted.<BR><BR>Foreigners also=20
become bemused when Ukrainian journalists or officials ask<BR>them for =
advice on=20
how to act in this or that situation. Once my friend<BR>complained to me =
that a=20
foreign doctor who he asked for advice replied that<BR>he himself had =
come to=20
Ukraine to study the experience of=20
Ukrainian<BR>colleagues.<BR><BR>Unfortunately, there are still many =
people in=20
Ukraine that think foreign<BR>products are better, more advanced and =
more=20
perfect. They are not guilty,<BR>however, for they could not compare =
things when=20
living behind the Iron<BR>Curtain.<BR><BR>The opening of the Soviet =
borders=20
blinded many Ukrainians with bright<BR>labels, neon signs and exquisite =
designs.=20
The younger generation, especially<BR>pop stars, tried to derive =
advantages from=20
their inferior fondness for<BR>foreign things.<BR><BR>They went abroad =
and often=20
performed in public transport or at bus stops </DIV>
<DIV>but returned home and achieved nationwide fame, stunning all with=20
their<BR>superficial European chic.<BR><BR>This makes foreigners believe =
the=20
inferiority complex is innate in<BR>Ukrainians, which is, in fact, not =
true=20
because people are born with no<BR>complexes, their behavior later being =
sculpted by life circumstances,<BR>education and environment. No doubt, =
if this=20
environment is poor and<BR>squalid, as it is in India's caste society, =
it will=20
produce certain<BR>stereotypes.<BR><BR>It provides the basis for some of =
our=20
traits: we, for example, never argue<BR>with directors but do what we =
think is=20
right or appropriate.<BR><BR>This trait is mirrored in the Russian =
simile, "as=20
stubborn as Ukrainians."<BR>However, doing what one believes should be =
done=20
contributed to the<BR>reputation of Ukrainians who are now good business =
people.<BR><BR>This trait somehow overshadows and muffles our lasting,=20
aggressive and<BR>tragic struggle for dignity. Oppressed, Ukrainians =
always=20
revolted, and<BR>there are many pages in our history showing how =
valorously we=20
fought for<BR>centuries to defend ourselves.<BR><FONT color=3D#800000=20
size=3D4><STRONG>OBSTINATE UKRAINIANS OPPRESSED AND=20
PRESSURED<BR></STRONG></FONT>Not only were "obstinate Ukrainians" =
oppressed and=20
pressured but also they<BR>were also encouraged to obey government and =
comply=20
with unnatural commands<BR>they were reluctant to follow.<BR><BR>The =
local elite=20
was offered privileges and gifts in exchange for loyalty.<BR>All =
governments=20
ruling Ukraine did such things: Austro-Hungary, Russia, and<BR>Poland. =
The=20
country's leaders were given titles, lands and other =
valuables.<BR><BR>Our=20
foreign rulers also tried to assimilate Ukrainians by forcing them =
to<BR>adopt=20
Catholicism and materially urging them to speak other languages. =
We<BR>were not=20
allowed to study, sing and write in Ukrainian but still sang =
our<BR>songs=20
without words.<BR><BR>Our history was also scrupulously censored; =
periods and=20
outstanding<BR>personalities that could have inspired the nation and =
determined=20
its course<BR>being deliberately removed. They even censored research =
papers on=20
the<BR>Trypillya culture, the most ancient culture in our =
country.<BR><BR>That=20
must have been done to prevent Ukrainians from looking to their =
roots,<BR>as=20
other Europeans do, to prove they are older than their "elder=20
Russian<BR>brothers."<BR><FONT color=3D#800000 size=3D4><STRONG> =
RUSSIANS=20
LOVED DEMONIZING UKRAINE'S HEROES</STRONG></FONT><BR>Russians also loved =
demonizing Ukraine's national heroes and sometimes<BR>exterminated them=20
physically. The names of Mazepa, Petlyara, Makhno and<BR>Bendera were =
not=20
uttered without the prefix "bandit." These names were used<BR>to =
frighten and=20
intimidate people.<BR><BR>Calling someone a follower of Petlyura or =
Bendera=20
meant that this person<BR>would be jailed. Even during this year's =
election,=20
there were no people with<BR>such surnames and very few Mazepas, even =
though he=20
lived in the 18th<BR>century. He is still scorned as "the traitor of =
Tsar Peter,=20
the Great" by<BR>leaders of Russia's Orthodox Church.<BR><BR>Sometimes=20
government ignored national priorities if a Ukrainian made =
some<BR>invention.=20
Such was the case with an apple variety cultivated by =
Symyrenko.<BR><BR>Over the=20
years of independence, Ukrainians have been gradually =
overcoming<BR>their=20
inferiority complex. They revived the names of their=20
prominent<BR>personalities.<BR><BR>I remember being stunned to learn =
about the=20
famous Ukrainian ballet master<BR>Serge Lyfar, performing in Paris's =
Grande=20
Opera, or about constructors of<BR>space devices, or that constructor =
Glushko=20
was among those who developed</DIV>
<DIV>and built the Katyusha multiple rocket launcher.<BR><BR>It is too =
early to=20
claim we remember all our names. Many pages and names of<BR>our history =
were=20
torn off, deleted or misinterpreted. We still need much<BR>time and =
effort to=20
re-establish Ukraine as a historical nation.<BR><BR>Foreign researchers =
helped=20
us see we are intelligent, educated and<BR>industrious. That is, no =
doubt, a=20
great result. At the same time, when being<BR>compared with Americans =
and=20
Europeans, Ukrainians see their actual<BR>imperfections.<BR><BR>Another =
factor=20
that contributed to our re-evaluation of who we are is the<BR>comparison =
of our=20
technologies and appliances with those produced in </DIV>
<DIV>Europe and Asia.<BR><BR>We have already recovered from the first =
shock and=20
surprise from the<BR>lustrous design of those devices, and that =
comparison has=20
ruined the myth of<BR>foreign superiority, although we thought only our =
military=20
equipment was<BR>equal to theirs. We now often see signs in shops =
declaring that=20
a product is<BR>produced in Ukraine and in accordance with the EU=20
standards.<BR><FONT color=3D#800000>ORANGE REVOLUTION SEMINAL EVENT IN =
NATION'S=20
REVIVAL</FONT><BR>However, the greatest events that radically influenced =
us were=20
the<BR>Independence Square demonstrations of 2004, generally referred to =
as=20
the<BR>Orange Revolution. In fact, it was not a revolution at all. This=20
became<BR>obvious when its leaders gained power and betrayed their=20
slogans.<BR><BR>Nevertheless, it was the seminal event in the nation's =
revival.=20
It must have<BR>been the greatest revolution since the Liberating War of =
Istanbul, Warsaw, Moscow<BR>and Sweden, but the nation, which Europe =
called the=20
Cossack nation, was<BR>formed and existed for centuries =
afterwards.<BR><BR>It is=20
clear that the 2004 events will be inspiring Ukrainians for =
decades.<BR>The=20
Maidan spirit and values will be passed on from one generation=20
to<BR>another.<BR><BR>Our posterity will no longer be offspring of the=20
exterminated, oppressed<BR>generation but of the generation of free, =
proud and=20
self-respecting parents.<BR>They will not berate themselves, complain =
and ask=20
others for advice.<BR><BR>To progress to that time, we must often tell=20
Ukrainians: "Respect yourself,<BR>you deserve=20
it." &nb=
sp; &nbs=
p; =20
-30-<BR>-----------------------------------------------------------------=
---------------------------<BR>LINK:=20
<A=20
href=3D"http://www.ukraine-observer.com/articles/227/978">http://www.ukra=
ine-observer.com/articles/227/978</A> <BR>--------------------------=
------------------------------------------------------------------</DIV>
<DIV>Subheadings added editorially by the AUR</DIV>
<DIV>--------------------------------------------------------------------=
------------------------<BR>[<A=20
href=3D"#i26">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>27<A=20
name=3Da27>.</A> <FONT =
color=3D#000080=20
size=3D4><STRONG>STRUGGLE ERUPTS OVER ANCIENT=20
CHURCH<BR><BR></STRONG></FONT>ANALYSIS & COMMENTARY: Elisabeth =
Sewall,=20
Assistant Editor<BR>Kyiv Post, Kyiv, Ukraine, Thursday, February 08=20
2007<BR><BR>An inside view of the disputed Church of St. Cyril of =
Alexandria,=20
which<BR>dates to the 12th century. Preservationists say the burning of=20
candles<BR>and incense from religious services are damaging the church's =
old=20
murals.<BR><BR>A medieval Kyiv church decorated with priceless murals is =
at the=20
center of<BR>an escalating dispute between museum administrators and a =
local=20
church<BR>subordinate to the Moscow Patriarchate.<BR><BR>For the last =
decade or=20
so, the 12th century Church of St. Cyril of<BR>Alexandria has been =
functioning=20
as both a place of worship under the<BR>administration of the Ukrainian =
Orthodox=20
Church Moscow Patriarchate<BR>(UOCMP) and as a state historical museum =
open to=20
visitors.<BR><BR>Now museum officials say that daily religious =
practices, such=20
as the<BR>burning of candles and incense, are damaging the=20
murals.<BR><BR>According to a report issued last October by the National =
Research<BR>Restoration Center of Ukraine, St. Cyril's fragile artworks, =
dating=20
back to<BR>Kyivan Rus years, need a proper microclimate to=20
survive.<BR><BR>According to preservationists, the UOCMP doesn't think =
the=20
murals, some<BR>painted by 19th century Russian artist Mikhail Vrubel, =
are=20
"iconic," and<BR>therefore they can simply be painted over or covered=20
up.<BR><BR>Sergiy Geruk, editor of Kyrylitsa news, a publication of the=20
Metropolitan of<BR>the UOCMP, called these claims "distorted," and meant =
to make=20
his fellow<BR>churchmen look "uneducated."<BR><BR>"What's at issue is =
rights=20
over use of the church, but that doesn't mean<BR>that the church will =
suffer=20
from that use," he said.</DIV>
<DIV><BR>According to him, it's up to the government to resolve the =
issue.=20
But<BR>preservationists claim that the UOCMP has already found a =
loophole in=20
the<BR>law, allowing it to pay a small fee for the right to redecorate =
the=20
church.<BR><BR>"We need to do everything in our power to make sure the =
St.=20
Cyril's remains<BR>under the stewardship of the museum," said Iryna =
Marhodina,=20
assistant<BR>director at St. Sophia's National Conservation =
Area.<BR><BR>"We=20
don't think that the UOCMP has adequate resources and =
educated<BR>specialists to=20
provide proper security and restoration, or to run the<BR>educational=20
tours."<BR><BR>"It should be primarily a museum, and there should be =
separate=20
church<BR>services - not every day, but a return to the former schedule =
of=20
church<BR>services only on Saturdays and Sundays," she =
added.<BR><BR>Instead,=20
according to Marhodina, the UOCMP could hold daily services at =
St.<BR>Basil's=20
church, which is adjacent to St. Cyril's.</DIV>
<DIV><BR>St. Basil's was constructed using state funds for the express =
use of=20
the<BR>UOCMP. However, due to shortfalls in financing, the interior =
walls are=20
still<BR>bare. In 1965,<BR><BR>The Church of St. Cyril was put under the =
care of=20
the National Preserve of<BR>St. Sophia, which also administers the =
Pecherska=20
Lavra complex, St. Sophia's<BR>Cathedral and St. Andrew's =
Church.<BR><BR>In=20
1994, St. Cyril's was designated a museum accommodating limited=20
church<BR>services. The situation changed significantly in 2004, when an =
agreement was<BR>drawn up that made UOCMP the main steward of St. =
Cyril's,=20
limiting museum<BR>oversight.<BR><BR>Regulation of the monument falls =
under the=20
jurisdiction of the Ministry of<BR>Construction, Housing and Communal =
Services=20
of Ukraine. But American and<BR>Canadian preservationists have recently =
begun=20
writing petitions asking the<BR>Ukrainian government to stop the UOCMP =
from=20
using St. Cyril's.<BR><BR>Olenka Pevny, an art historian specializing in =
Late=20
Antique, Byzantine and<BR>Medieval art history at the University of =
Richmond in=20
Virginia, says that<BR>her letter campaign is having an impact, gaining =
the=20
support of New York's<BR>Metropolitan Museum of Art and the Early Slavic =
Studies=20
Organization of the<BR>United States, among others.<BR><BR>Pevny said =
the sole=20
purpose of the campaign is to make sure that Ukraine's<BR>cultural =
heritage is=20
protected for prosperity. "The issue I am raising is not </DIV>
<DIV>whether there are qualified and earnest individuals in the church =
versus=20
the </DIV>
<DIV>museums."<BR><BR>"What I am saying is that in all of Ukraine there =
survives=20
only one<BR>12th-century monument with frescoes. It is the second most=20
important<BR>medieval monument in all of Ukraine after the St. Sofia =
Cathedral.=20
The<BR>Church of St. Cyril should be designated a historical-cultural=20
landmark<BR>belonging to all the Ukrainian people," she =
said.<BR><BR>Pevny has=20
started a campaign on behalf of St. Sophia's National Preserve =
to<BR>apply to=20
the World Monuments Fund to nominate St. Cyril's for a place on<BR>the =
Fund's=20
Watch List of the World's 100 Most Significant Endangered =
Sites.<BR><BR>The=20
Cabinet of Ministers of Ukraine recently removed 300 monuments =
from<BR>the=20
protective list of historical-cultural sites, allowing them to =
be<BR>considered=20
for "re-appropriation" and permanent Church use.<BR><BR>Pevny suspects =
that St.=20
Cyril's could be on this=20
list. =20
-30-<BR>-----------------------------------------------------------------=
--------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.kyivpost.com/opinion/26055/">http://www.kyivpost.com/o=
pinion/26055/</A><BR>----------------------------------------------------=
---------------------------------------------<BR>[<A=20
href=3D"#i27">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>28<A=20
name=3Da28>.</A> <FONT color=3D#000080 size=3D4><STRONG>INTERNET =
ENCYCLOPEDIA OF=20
UKRAINE=20
FEATURES:<BR> =
=20
THE ART OF FRESCO PAINTING IN UKRAINE<BR></STRONG></FONT><BR>Internet=20
Encyclopedia of Ukraine (IEU) Newsletter<BR>Dr. Marko R. Stech, Managing =
Director, CIUS Press<BR>Project Manager, Internet Encyclopedia of=20
Ukraine<BR>Toronto, Ontario, Canada, February 2007<BR><BR><FONT=20
color=3D#800000>BECAUSE OF THE CURRENT CONTROVERSY REGARDING THE<BR>FATE =
OF THE=20
FRESCOES OF SAINT CYRIL'S CHURCH IN KYIV,<BR><BR>INTERNET ENCYCLOPEDIA =
OF=20
UKRAINE FEATURES:<BR>THE ART OF FRESCO PAINTING IN UKRAINE (February=20
2007)<BR></FONT><BR>In the Kyivan Rus' the fresco was the principal =
method of=20
decorating church<BR>interiors. While Byzantine-style mosaics were =
limited to=20
the central part<BR>of a church, frescoes covered all the side apses, =
vaults,=20
columns and walls<BR>of the side naves, and sometimes even the arch =
supports,=20
galleries, niches,<BR>and external portals. In Byzantium, mosaics were =
never=20
mixed with frescoes<BR>in the same building; this is a unique practice =
of=20
Ukrainian church art.<BR><BR>Harmony between mosaic and fresco was =
achieved by=20
using the same<BR>dominant colors. The most famous examples of this =
decorative=20
system<BR>are Saint Sophia Cathedral (1037) and the Cathedral of Saint=20
Michael's<BR>Golden-Domed Monastery (mid-12th century) in =
Kyiv.<BR><BR>After the=20
middle of the 12th century frescoes almost completely =
replaced<BR>mosaics in the=20
decoration of church interiors. The most complete set of<BR>frescoes =
from this=20
period has been preserved in the church of Saint Cyril's<BR>Monastery in =
Kyiv.<BR><BR>Learn more about the art of fresco painting in Ukraine by=20
visiting:<BR><A=20
href=3D"http://www.encyclopediaofukraine.com/featuredentry.asp">http://ww=
w.encyclopediaofukraine.com/featuredentry.asp</A><BR>or=20
by visiting: <A=20
href=3D"http://www.encyclopediaofukraine.com">http://www.encyclopediaofuk=
raine.com</A><BR>and=20
searching for such entries as:<BR><BR><FONT color=3D#800000>FRESCO=20
PAINTING.</FONT> A method of painting on freshly plastered walls=20
with<BR>powdered pigments that are resistant to the erosive action of =
lime.=20
Before<BR>the colors are applied to the wet plaster the main lines of =
the=20
composition<BR>are usually traced on the preceding coat. The painting is =
very=20
durable and<BR>is applied to both interior and exterior walls. The =
origins of=20
fresco<BR>painting in Ukraine can be traced back to the 4th century=20
BC.<BR><BR>Frescoes adorned the homes, public buildings, and tombs of =
the=20
Greek<BR>colonists and Scythians on the coast of the Black Sea. The most =
interesting<BR>ancient frescoes from the 1st century BC were discovered =
during=20
excavations<BR>of burial sites in Kerch in the tomb of =
Demeter.<BR><BR><FONT=20
color=3D#800000>SAINT SOPHIA CATHEDRAL.</FONT> Saint Sophia Cathedral is =
a=20
masterpiece of<BR>the art and architecture of Ukraine and Europe. It was =
built=20
in Kyiv at the<BR>height of Kyivan Rus', in the Byzantine style, and=20
significantly transformed<BR>during the baroque period. The cathedral =
was=20
founded by Grand Prince<BR>Yaroslav the Wise and built between 1037 and=20
1044.<BR><BR>The original building, most of which remains at the core of =
the=20
existing<BR>cathedral, is a cross-in-square plan with twelve cruciform =
piers=20
marking<BR>five east-west naves intersected by five transverse aisles. =
The=20
cathedral's<BR>interior is decorated with magnificent 11th-century =
mosaics and=20
frescoes.<BR>Exterior ornamentation of the original 11th-century walls =
consists=20
of<BR>decorative brickwork, the monochromatic painting of key=20
architectural<BR>elements, and a number of frescoes.<BR><BR><FONT=20
color=3D#800000>SAINT MICHAEL'S GOLDEN-DOMED MONASTERY.</FONT> An=20
Orthodox<BR>men's monastery in Kyiv. In the 1050s Prince Iziaslav =
Yaroslavych=20
built<BR>Saint Demetrius's Monastery and Church in the old upper city of =
Kyiv,<BR>near Saint Sophia Cathedral.<BR><BR>In 1108-13 his son, =
Sviatopolk II=20
Iziaslavych, built a church at the<BR>monastery dedicated to Saint =
Michael the=20
Archangel. The monastery was<BR>mostly destroyed during the Tatar =
invasion of=20
1240 and ceased to exist.<BR><BR>Written records confirm that it was =
reopened by=20
1496. Soon afterward it<BR>began to be known as Saint Michael's =
Golden-Domed=20
Monastery, its name<BR>being taken from the church built by Sviatopolk =
II=20
Iziaslavych. Restored and<BR>enlarged over the 16th century, it became =
one of=20
the most popular and<BR>wealthy monasteries in Ukraine. ...<BR><BR><FONT =
color=3D#800000>SAINT CYRIL'S MONASTERY</FONT>. A monastery founded by =
Grand=20
Prince<BR>Vsevolod Olhovych ca 1140 on the outskirts of medieval Kyiv. =
Its=20
church,<BR>Saint Cyril's, was built ca 1146. The church's frescoes are =
fine=20
examples of<BR>12th-century Ukrainian art and the influence of=20
Bulgarian-Byzantine<BR>painting on it.<BR><BR>They depict the Nativity =
of=20
Christ, the Presentation of Christ at the <BR>Temple, the Eucharist, the =
Annunciation, the Dormition, the Last Judgment </DIV>
<DIV>and Apocalypse, an angel gathering the heavens into a scroll, the =
apostles,=20
the<BR>evangelists, and various prophets and martyrs.<BR><BR>Murals of=20
saints-Saint Cyril and Saint Methodius, Saint John the =
Macedonian,<BR>Saint=20
Euphemios-adorn its pillars, and compositions depicting Saint =
Cyril<BR>teaching=20
the heretic, teaching in the cathedral, and teaching the emperor<BR>are =
found in=20
the southern=20
apse. &n=
bsp; =20
-30-<BR>-----------------------------------------------------------------=
---------------------------<BR>The=20
preparation, editing, and display of the IEU entries associated =
with<BR>the art=20
of fresco painting in Ukraine by the financial support of =
the<BR>CANADIAN=20
FOUNDATION FOR UKRAINIAN STUDIES.<BR><BR><FONT color=3D#800000>ABOUT =
IEU:</FONT>=20
Once completed, the Internet Encyclopedia of Ukraine will be<BR>the most =
comprehensive source of information in English on Ukraine, =
its<BR>history,=20
people, geography, society, economy, and cultural heritage. With<BR>over =
20,000=20
detailed encyclopedic entries supplemented with thousands of<BR>maps,=20
photographs, illustrations, tables, and other graphic and/or =
audio<BR>materials,=20
this immense repository of knowledge is designed to present<BR>Ukraine =
and=20
Ukrainians to the world.<BR><BR>At present, only 11% of the entire =
planned IEU=20
database is available on the<BR>IEU site. New entries are being edited, =
updated,=20
and added daily. However,<BR>the successful completion of this ambitious =
and=20
costly project will be<BR>possible only with the financial aid of the =
IEU=20
supporters. Become the IEU<BR>supporter and help the CIUS in creating =
the=20
world's most authoritative<BR>electronic information resource about =
Ukraine and=20
Ukrainians!<BR>----------------------------------------------------------=
-----------------------------------<BR>Dr.=20
Marko R. Stech, Managing Director, CIUS Press<BR>Project Manager, =
Internet=20
Encyclopedia of Ukraine<BR>Project Manager, Hrushevsky Translation=20
Project<BR>Canadian Institute of Ukrainian Studies<BR>University of =
Toronto, 20=20
Orde Street, Rm. 124<BR>Toronto, Ontario M5T 1N7; tel: (416) 946-7326; =
fax:=20
(416) 978-2672<BR><A=20
href=3D"http://www.utoronto.ca/cius">www.utoronto.ca/cius</A>; <A=20
href=3D"http://www.encyclopediaofukraine.com">www.encyclopediaofukraine.c=
om</A><BR>---------------------------------------------------------------=
--------------------------------<BR>[<A=20
href=3D"#i28">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>29<A=20
name=3Da29>.</A> <FONT color=3D#000080>KYIV MOHYLA ACADEMY =
FUNDRAISER IN=20
WASHINGTON</FONT> </DIV>
<DIV><FONT=20
color=3D#000080> &nb=
sp; &nbs=
p;  =
; =20
Sunday, February 11, 2007</FONT></DIV>
<DIV><FONT color=3D#000080></FONT> </DIV>
<DIV>Action Ukraine Report (AUR) #813, Article 29</DIV>
<DIV>Washington, D.C., Friday, February 9, 2006</DIV>
<DIV><FONT face=3DArial></FONT><BR>WASHINGTON - <FONT =
color=3D#800000>The Kyiv=20
Mohyla Foundation will host fundraiser in </FONT></DIV>
<DIV><FONT color=3D#800000>the Washington/Baltimore area for a premier =
Ukrainian=20
university.<BR></FONT> <BR>WHAT: Kyiv Mohyla Academy Fundraiser =
&=20
Awareness Event/Dinner<BR>WHEN: Sunday, February 11, 1:00 pm<BR>WHERE: =
St.=20
Andrews Ukrainian Orthodox Cultural Center<BR>15100 New Hampshire Ave., =
Silver=20
Spring, MD 20905 <BR> <BR>Please make reservations prior to the =
event by=20
calling: <BR>301-593-5316 (Valentyn Zabijaka); or 301-873-2035 (Andriy =
Bihun);=20
<BR>or 773-685-1828 (Marta=20
Farion)<BR>--------------------------------------------------------------=
---------------------------------<BR>[<A=20
href=3D"#i29">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>30<A=20
name=3Da30>.</A> <FONT color=3D#000080 size=3D4><STRONG>CIUS PRESS =
PRESENTS A=20
GUIDE FOR=20
UKRAINIAN<BR> =
&=
nbsp; =20
GENEALOGICAL RESEARCH</STRONG></FONT>=20
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>CIUS Press, University of Alberta, Edmonton, AB, Canada, Feb,=20
2007<BR><BR>RE: John D. Pihach, Ukrainian Genealogy: A Beginner's =
Guide<BR>CIUS=20
Pres, 272 pp., $54.95 (cloth). $34.95 (paper)<BR><BR><FONT =
color=3D#800000>John D.=20
Pihach's Ukrainian Genealogy is a guide to tracing one's Ukrainian =
<BR>ancestry=20
in Europe. Consideration is also given to North American records =
<BR>that are=20
specifically Ukrainian or relate to the immigrant =
experience.<BR><BR>Because the=20
overwhelming majority of people of Ukrainian origin in Canada <BR>and =
the United=20
States have roots in western Ukraine or southeastern Poland, <BR>the =
guide=20
concentrates on the resources of those regions.<BR></FONT><BR>This =
handbook is=20
intended primarily for those whose ethnic roots are <BR>Ukrainian, =
although some=20
of the material in it may be useful to other groups <BR>with roots in=20
Ukraine.<BR><BR>Chapters 1 and 2 discuss general topics that are =
preliminary to=20
research. <BR>Personal names are examined in chapter 3. Chapters 4 and 5 =
outline=20
the early <BR>religious experiences of Ukrainians in North America and =
the=20
church records <BR>that are available. Chapter 6 addresses the crucial =
question=20
of determining <BR>the name of the European ancestral =
community.<BR><BR>Chapter=20
7 explains how to locate places on a map, describes the various=20
<BR>administrative divisions that existed in the past, and looks at the =
many=20
<BR>types of maps that pinpoint the location of the ancestral village =
and even=20
<BR>the actual home.<BR><BR>The resources for learning the history of a =
specific=20
region are covered in <BR>chapter 8. Chapters 9 and 10 are devoted to=20
church-based birth, marriage, <BR>and death records, the principal =
overseas=20
genealogical resource. Chapters 11 <BR>and 12 survey other overseas=20
materials.<BR><BR>Several appendixes describe Ukrainian transliteration =
schemes=20
and present a <BR>key to the scripts of the languages that were used in =
record=20
keeping; <BR>provide a starting point for research by other ethnic =
groups with=20
roots in <BR>Ukraine; and list useful Web sites.<BR><BR>John D. Pihach =
received=20
a B.Sc. degree in physics from the University of <BR>British Columbia =
and=20
studied studio fine arts at Langara College, Vancouver. <BR>He has spent =
many=20
years wandering about Asia and Europe and has made a </DIV>
<DIV>dozen trips to Eastern Europe, where he has done genealogical =
research at=20
</DIV>
<DIV>several archives.<BR><BR>He works as a weather observer and is the =
library=20
chairperson of the East <BR>European Genealogical Society in Winnipeg =
and author=20
of several articles in <BR>Galician genealogy..<BR><BR>Orders can be =
placed=20
online at:<BR><A=20
href=3D"http://www.utoronto.ca/cius/publications/books/ukrainiangenealogy=
.htm">http://www.utoronto.ca/cius/publications/books/ukrainiangenealogy.h=
tm</A><BR>and=20
by: e-mail: <A href=3D"mailto:cius@ualberta.ca">cius@ualberta.ca</A>; =
telephone:=20
(780) 492-2973 between </DIV>
<DIV>8:30 am and 4:30 pm (MST). fax: (780) 492-4967.</DIV>
<DIV><BR>Mail: CIUS Press, 450 Athabasca Hall, University of Alberta, =
Edmonton,=20
</DIV>
<DIV>AB, Canada T6G 2E8.<BR><BR>SPECIAL OFFER: MORE FOR LESS (valid only =
through=20
Web site)<BR>Buy the paperback edition of this book together with =
Ukrainians in=20
Canada: <BR>The Formative Years, 1891-1924 (cloth, $49.95) and save=20
20%<BR>[Total Regular Price: $34.95 + $49.95 =3D $84.90]Purchase =
Together:=20
$67.92<BR><BR>CIUS Press is the largest publisher of English-language =
material=20
about <BR>Ukraine. It is the publishing arm of the Canadian Institute of =
Ukrainian <BR>Studies at the University of Alberta and the University of =
Toronto. The <BR>emergence of Ukraine as an independent state has =
focused=20
general and <BR>scholarly interest on Ukrainian studies, and CIUS Press =
is=20
meeting that <BR>interest and need with a sizeable offering of new, =
forthcoming,=20
and </DIV>
<DIV>already published=20
books.<BR>---------------------------------------------------------------=
-------------------------<BR>Dr.=20
Marko R. Stech, Managing Director, CIUS Press<BR>Project Manager, =
Internet=20
Encyclopedia of Ukraine<BR>Project Manager, Hrushevsky Translation=20
Project<BR>Canadian Institute of Ukrainian Studies<BR>University of =
Toronto; 20=20
Orde Street, Rm. 124<BR>Toronto, Ontario M5T 1N7; tel: (416) 946-7326; =
fax:=20
(416) 978-2672<BR><A=20
href=3D"http://www.utoronto.ca/cius">www.utoronto.ca/cius</A>; <A=20
href=3D"http://www.encyclopediaofukraine.com">www.encyclopediaofukraine.c=
om</A></DIV></DIV>
<DIV>--------------------------------------------------------------------=
--------------------------<BR>[<A=20
href=3D"#i30">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
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you are=20
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<DIV><FONT color=3D#800000> <FONT =
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UKRAINE REPORT=20
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AUR"<BR></STRONG></FONT> &=
nbsp;A=20
Free, Not-For-Profit, Independent, Public Service Newsletter</DIV>
<DIV> <FONT=20
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color=3D#000080> </FONT><FONT color=3D#800000> <FONT =
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<DIV> &n=
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Additional readers are=20
welcome.<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV> <STRONG><FONT color=3D#800000 =
size=3D4> =20
</FONT></STRONG><FONT color=3D#800000 size=3D4><STRONG>SigmaBleyzer/The =
Bleyzer=20
Foundation Economic=20
Reports<BR></STRONG></FONT> &nbs=
p; <FONT=20
color=3D#800000> <FONT size=3D4>"SigmaBleyzer - Where =
Opportunities=20
Emerge"</FONT></FONT><FONT color=3D#800000> </FONT></DIV>
<DIV><FONT color=3D#800000><FONT size=3D4></FONT> </DIV>
<DIV></FONT>The SigmaBleyzer Emerging Markets Private Equity Investment =
Group=20
</DIV>
<DIV>and The Bleyzer Foundation offers a comprehensive collection of =
documents,=20
</DIV>
<DIV>reports and presentations published by its business units and=20
organizations. </DIV>
<DIV> </DIV>
<DIV>All publications are grouped by categories: Marketing; =
Economic=20
Country </DIV>
<DIV>Reports; Presentations; Ukrainian Equity Guide; Monthly =
Macroeconomic=20
</DIV>
<DIV>Situation Reports (Romania, Bulgaria, Ukraine).</DIV>
<DIV>LINK: <A=20
href=3D"http://www.sigmableyzer.com/index.php?action=3Dpublications">http=
://www.sigmableyzer.com/index.php?action=3Dpublications</A></DIV>
<DIV> </DIV>
<DIV>You can be on an e-mail distribution list to receive automatically, =
on=20
a<BR>monthly basis, any or all of the Macroeconomic Situation Reports=20
(Romania,<BR>Bulgaria, Ukraine) by sending an e-mail to <A=20
href=3D"mailto:mwilliams@SigmaBleyzer.com">mwilliams@SigmaBleyzer.com</A>=
.</DIV>
<DIV> &n=
bsp; <FONT=20
color=3D#000080> </FONT><FONT color=3D#800000><EM>"UKRAINE - A COUNTRY =
OF NEW=20
OPPORTUNITIES"<BR></EM></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV>
<DIV> <FONT color=3D#000080=20
size=3D4><STRONG> &n=
bsp;</STRONG> <STRONG> ACTION=20
UKRAINE PROGRAM - SPONSORS</STRONG></FONT></DIV></DIV>
<DIV>
<DIV><FONT color=3D#000080=20
size=3D4><STRONG> &n=
bsp; &nb=
sp; =20
</STRONG> Action Ukraine Report (AUR)</FONT></DIV>
<DIV><FONT color=3D#000080 size=3D4><FONT=20
size=3D3> &nbs=
p; =20
Holodomor Art and Graphics Collection & Exhibitions<BR><FONT=20
color=3D#000000> </F=
ONT> "Working=20
to Secure & Enhance Ukraine's Democratic =
Future"<BR></FONT><BR></FONT></DIV>
<DIV>
<DIV>1. <FONT color=3D#800000 size=3D4>THE BLEYZER =
FOUNDATION</FONT>, Dr.=20
Edilberto Segura, </DIV>
<DIV>Chairman; Victor Gekker, Executive Director, Kyiv, Ukraine; </DIV>
<DIV>Washington, D.C., <A=20
href=3D"http://www.bleyzerfoundation.com">http://www.bleyzerfoundation.co=
m</A>.</DIV>
<DIV> Additional supporting sponsors for the Action =
Ukraine=20
Program are:<BR>2. <FONT color=3D#000080>UKRAINIAN FEDERATION OF =
AMERICA=20
(UFA)</FONT>, Zenia Chernyk,<BR>Chairperson; Vera M. Andryczyk, =
President;=20
Huntingdon Valley,<BR>Pennsylvania<BR>3. <FONT =
color=3D#000080>KIEV-ATLANTIC=20
GROUP</FONT>, David and Tamara Sweere, Daniel<BR>Sweere, Kyiv and =
Myronivka,=20
Ukraine, 380 44 298 7275 in Kyiv,<BR><A=20
href=3D"mailto:kau@ukrnet.net">kau@ukrnet.net</A><BR>4. <FONT=20
color=3D#000080>ESTRON CORPORATION</FONT>, Grain Export Terminal =
Facility=20
&<BR>Oilseed Crushing Plant, Ilvichevsk, Ukraine<BR>5. Law firm =
<FONT=20
color=3D#000080>UKRAINIAN LEGAL GROUP</FONT>, Irina Paliashvili,=20
President;<BR>Kiev and Washington, <A=20
href=3D"mailto:general@rulg.com">general@rulg.com</A>, <A=20
href=3D"http://www.rulg.com">www.rulg.com</A>.<BR>6. <FONT =
color=3D#000080>BAHRIANY=20
FOUNDATION, INC.</FONT>, Dr. Anatol Lysyj, Chairman,<BR>Minneapolis,=20
Minnesota<BR>7. <FONT color=3D#000080>VOLIA SOFTWARE</FONT>, Software to =
Fit Your=20
Business, Source your<BR>IT work in Ukraine. Contact: Yuriy Sivitsky, =
Vice=20
President, Marketing,<BR>Kyiv, Ukraine, <A=20
href=3D"mailto:yuriy.sivitsky@softline.kiev.ua">yuriy.sivitsky@softline.k=
iev.ua</A>;=20
Volia Software website:<BR><A=20
href=3D"http://www.volia-software.com/">http://www.volia-software.com/</A=
> or Bill=20
Hunter, CEO Volia Software,<BR>Houston, TX 77024; <A=20
href=3D"mailto:bill.hunter@volia-software.com">bill.hunter@volia-software=
.com</A>.<BR>8.=20
<FONT color=3D#000080>ODUM</FONT>- Association of American Youth of =
Ukrainian=20
Descent,<BR>Minnesota Chapter, Natalia Yarr, Chairperson<BR>9. <FONT=20
color=3D#000080>UKRAINE-U.S. BUSINESS COUNCIL</FONT>, Washington, =
D.C.,<BR>Morgan=20
Williams, SigmaBleyzer, Acting-President & Chairman,=20
<DIV>Executive Committee, Board of Directors; John Stephens, Cape </DIV>
<DIV>Point Capital, Secretary/Treasurer; Shannon Herzfeld, ADM, =
Chair,</DIV>
<DIV>Agribusiness Working Group; Irina Paliashvili, Ukrainian =
Legal</DIV>
<DIV>Group, Chair, Legal Affairs Working Group. </DIV></DIV>
<DIV>10. <FONT color=3D#000080>UKRAINIAN ORTHODOX CHURCH OF THE=20
USA</FONT>, Archbishop</DIV>
<DIV>Antony, South Bound Brook, New Jersey, <A=20
href=3D"http://www.uocofusa.org">http://www.uocofusa.org</A> </DIV>
<DIV>11. <FONT color=3D#000080>UKRAINIAN AMERICAN COORDINATING =
COUNCIL</FONT>=20
(UACC),<BR>Ihor Gawdiak, President, Washington, D.C., New York, New =
York<BR>12.=20
<FONT color=3D#000080>U.S.-UKRAINE FOUNDATION (USUF)</FONT>, Nadia=20
Komarnyckyj<BR>McConnell, President; John Kun, Vice President/COO;=20
Vera<BR>Andruskiw, CPP Wash Project Director, Washington, D.C.;=20
Markian<BR>Bilynskyj, VP/Director of Field Operations; Marta Kolomayets, =
CPP<BR>Kyiv Project Director, Kyiv, Ukraine. Web: <A=20
href=3D"http://www.USUkraine.org">http://www.USUkraine.org</A><BR>13. =
<FONT=20
color=3D#000080>WJ GROUP of </FONT>Ag Companies, Kyiv, Ukraine, =
David=20
Holpert, Chief </DIV>
<DIV>Financial Officer, Chicago, IL; <A=20
href=3D"http://www.wjgrain.com/en/links/index.html">http://www.wjgrain.co=
m/en/links/index.html</A></DIV>
<DIV>14. <FONT color=3D#000080>EUGENIA SAKEVYCH DALLAS</FONT>, =
Author, "One=20
Woman, Five </DIV>
<DIV>Lives, Five Countries," 'Her life's journey begins with the =
1932-1933=20
</DIV>
<DIV>genocidal famine in Ukraine.' Hollywood, CA, <A=20
href=3D"http://www.eugeniadallas.com">www.eugeniadallas.com</A>. </DIV>
<DIV>15. <FONT color=3D#000080>ALEX AND HELEN WOSKOB</FONT>, =
College Station,=20
Pennsylvania</DIV>
<DIV>16. <FONT color=3D#000080>SWIFT FOUNDATION</FONT>, San Luis =
Obispo,=20
California </DIV>
<DIV>
<DIV>17. <FONT color=3D#000080>TRAVEL TO UKRAINE</FONT> website, <A =
href=3D"http://www.TravelToUkraine.org">http://www.TravelToUkraine.org</A=
>,</DIV>
<DIV>A program of the U.S-Ukraine Foundation, Washington, D.C.</DIV>
<DIV>
<DIV>18. <FONT color=3D#000080>BUYUKRAINE.ORG</FONT> website, <A=20
href=3D"http://www.BuyUkraine.org">http://www.BuyUkraine.org</A>. </DIV>
<DIV>A program of the U.S.-Ukraine Foundation, Washington, D.C.=20
</DIV></DIV></DIV></DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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tion=20
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<DIV>your occupation and your interest in Ukraine is also appreciated. =
</DIV>
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UKRAINE=20
REPORT please </FONT></DIV>
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<FONT size=3D4> <FONT =
color=3D#000080> </FONT></FONT><STRONG><FONT=20
color=3D#000080 size=3D4> PUBLISHER AND EDITOR - =
AUR<BR></FONT></STRONG>Mr. E.=20
Morgan Williams, Director, Government Affairs<BR>Washington Office,=20
SigmaBleyzer, The Bleyzer Foundation</DIV>
<DIV>Emerging Markets Private Equity Investment Group</DIV>
<DIV>President (Acting) and Chairman, Executive Committee of the</DIV>
<DIV>Board of Directors, Ukraine-U.S. Business Council <BR>P.O. Box =
2607,=20
Washington, D.C. 20013, Tel: 202 437 4707<BR><A=20
href=3D"mailto:mwilliams@SigmaBleyzer.com">mwilliams@SigmaBleyzer.com</A>=
; <A=20
href=3D"http://www.SigmaBleyzer.com">www.SigmaBleyzer.com</A><BR>=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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=3D=3D=3D<BR> <FONT=20
size=3D4> <STRONG><FONT color=3D#000080> </FONT><FONT=20
color=3D#800000>Power Corrupts and Absolute Power Corrupts=20
Absolutely.</FONT></STRONG></FONT></DIV></DIV>
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ACTION UKRAINE REPORT - AUR =20
An International Newsletter, The Latest, Up-To-Date
In-Depth Ukrainian News, Analysis and Commentary
Ukrainian History, Culture, Arts, Business, =
Religion,
Sports, Government, and Politics, in Ukraine and Around the =
World =20
=20
ACTION UKRAINE REPORT - AUR - Number 813 Mr. E. Morgan Williams, Publisher and Editor, SigmaBleyzer WASHINGTON, D.C., FRIDAY, FEBRUARY 9, 2007
BY MOODY'S, S&P ON GROWTH Bloomberg News, London, UK, Thursday, 08 Feb 2007
SANDORA JUICE COMPANY FreshPlaza correspondent Poland, FreshPlaza Hertenkamp, The Netherlands, Thursday, February 8, 2007
CONFIRMS WESTRON AS ITS CORPORATE SUPPLIER
Westron was founded in 1994 by Khartron (Ukraine) and
Westinghouse Electric Company (United States). Ukrainian News Agency, Kyiv, Ukraine, Wednesday, February 7, 2007
UKRAINIAN BROADCASTS BY BOTH VOA AND RADIO
FREE EUROPE/RADIO LIBERTY (RFE/RL) Broadcasting Board of Governors Washington, D.C., Monday, February 05, 2007
Irish developer also looking for investments in Ukraine Kevin O'Conner, Irish Times, Ireland, Thursday, Feb 08, 2007
UKRAINE-POLAND OIL PIPELINE PAP news agency, Warsaw, Poland, Tuesday, 6 Feb 07
OF AGRICULTURAL MACHINERY IN UKRAINE=20 By Dmytro Kuzmin, Ukrainian News Agency Kyiv, Ukraine, Friday, February 2, 2007
List of members has not been approved By Natalya Nepryakhina, The Kommersant-Ukraine Kyiv, Ukraine, Friday, February 02, 2007
TRADE, INVESTMENT AND BUSINESS IN UKRAINE Interfax Ukraine Economic, Kyiv, Ukraine, Wed, January 31, 2007
KHERSON DAIRY PLANT CJSC RODYCH Interfax Ukraine Economic, Kherson, Ukraine, Friday, January 26, 2007
Will employ 1,200 workers in Volinskiy Region Interfax-Ukraine, Kyiv, Ukraine, Wednesday, Jan 24, 2007
MINI-PLANT IN ODESA REGION BY FEBRUARY Interfax Ukraine Economic, Kyiv, Ukraine, Friday, January 26, 2007
MAKER SIKORSKY AIRCRAFT CORPORATION Interfax-AVN military news agency website, Moscow, in English 18 Jan 07 BBC Monitoring Service, United Kingdom, Thursday, Jan 18, 2007
THE ART OF FRESCO PAINTING IN UKRAINE Internet Encyclopedia of Ukraine Newsletter Dr. Marko R. Stech, Managing Director, CIUS Press Project Manager, Internet Encyclopedia of Ukraine Toronto, Ontario, Canada, February 2007
Sunday, February 11, 2007 Action Ukraine Report (AUR) #813, Article 29 Washington, D.C., Friday, February 9, 2006
GENEALOGICAL RESEARCH=20 CIUS Press, University of Alberta, Edmonton, AB, Canada, Feb, 2007 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D
By David Ibison in Stockholm and Roman Olearchyk in Kiev Financial Times, London, UK, Thursday, February 8 2007
Swedbank, Sweden's largest bank, is to acquire Ukraine's TAS-Kommerzbank
for up to $985m, continuing the eastward expansion of Sweden's banks =
away
from the mature Nordic markets to Europe's high-growth emerging markets.
The Swedish lender will acquire 100 per cent of TAS-Kommerzbank,
Ukraine's 13th-largest lender, for $735m plus an additional $250m in =
three
years if the bank's performance meets certain undisclosed criteria.
Yesterday's acquisition provides further proof that Ukraine's banking =
sector
is poised for a period of acquisitions. Foreign ownership of Ukrainian =
banks
is about 25 per cent compared with 70 per cent in Poland and 90 per cent =
in
the Czech Republic.
Several European banking groups, including the National Bank of Greece, =
are
close to completing acquisitions of two other Ukrainian banks, Forum and
Kreditprombank, and a handful of medium-sized banks are also for sale.
Ukraine has a population of 47m, nine times larger than Sweden's, but =
its
per capita gross domestic product is languishing at about $1,771, well
behind its central and eastern European neighbours. However, an expected
compound annual growth rate of 5.3 per cent over the next five years is
expected to narrow this gap.
It has total loans $834m, although non-performing loan figures were not
disclosed. Its cost income ratio is 54 per cent, down from last year's =
58
per cent but up from 2004's 39 per cent. Since 2004 it has more than
doubled its workforce and expanded its branch network.
2. UKRAINE'S CREDIT RATING MAY BE RAISED
BY MOODY'S, S&P ON GROWTH
Ukraine's credit ratings may be lifted this year by international credit =
Ukraine is the biggest former Soviet state with credit ratings below=20
investment grade, a legacy of political instability and delays in =
selling=20
state assets and gaining membership of the WTO.
"Ukraine's rating is B1, which is very low," said Jonathan Schisser, a=20
Moody's analyst in London by telephone. "We may raise it" though the=20
timing "depends on political stability and the government's ability to =
carry=20
out structural reforms."
Ukraine, a country of 47 million bordering the EU and Russia, seeks =
higher=20
credit ratings to reduce borrowing costs and win more overseas =
investment.
Foreign direct investment since the collapse of communism in 1991 totals =
$20=20
billion, less than a fifth of the amount lured by neighboring Poland. =
Higher=20
credit ratings mean lower debt costs for the government and Ukrainian=20
companies.
Ukraine's 7.65% benchmark government bond maturing in 2013 yesterday
yielded 6.09%, down from 6.66% in October 2006. President Viktor=20
Yushchenko is battling with Prime Minister Viktor Yanukovych, the man=20
he ousted two years ago in the Orange Revolution, over domestic and =
foreign
policies.
February 7. "Ukraine's rating at four to five notches behind Russia =
appears=20
somewhat unjust."
Exports including steel and grain and proceeds from shipping Russian gas =
via=20
Ukrainian pipelines to Europe make up more than half of GDP. The economy =
is=20
forecast to expand 6% a year through 2011, said Economy Minister =
Oleksandr=20
Makukha on January 30.
Ukrainian steel was traded at $455 per ton on the spot market February =
5,=20
compared with $312 per ton a year ago, according to Bloomberg data.
Average prices for Ukrainian steel will increase 5% to 7% this year from =
a=20
year ago, analysts say, including Ivan Kharchuk, an analyst at =
Kiev-based=20
largest brokerage Dragon Capital.
Average prices for Ukrainian grain were $153 per ton in January this =
year,=20
compared with $85 per ton a year ago, Bloomberg data shows. "We=20
believe there is a good prospect of an upgrade," said Ed Parker, a =
senior=20
director at Fitch sovereign group in London, in an e-mailed statement."
Although Ukraine is likely to be subject to political noise for the=20
foreseeable future, Fitch believes that political risk is of a lower =
order=20
of magnitude than two-three years ago."
Moody's raised Ukraine's outlook to positive from stable in November,=20
indicating it is ready to improve the rating. The foreign and local =
issuer=20
default rating was affirmed at B1, four steps below investment grade.=20
Fitch raised Ukraine's outlook to positive a month before that.
The foreign and local issuer default rating was affirmed at BB-, three =
steps=20
below investment grade. S&P kept its long-term foreign debt rating at =
BB-,=20
its long-term local debt rating at BB and its short-term sovereign =
credit=20
rating at B, the company said in a statement in July. The outlook =
remained=20
"stable," S&P said. -30-
Interfax - Russia, Kyiv, Ukraine, Tuesday, Feb 06, 2007
KYIV - Ukraine is proposing that Vanco International Limited sign a
production sharing agreement (PSA) on the Prikerchensky oil and gas =
field=20
in a proportion of 60:40 during industrial testing and 50:50 during =
industrial
production, Environmental Protection Minister Vasyl Dzharty told =
reporters
on Tuesday in Kyiv.
Vanco International, a subsidiary of Vanco Energy Company, in April 2006 =
won
a tender announced by the Ukrainian government on the right to reach a =
PSA
agreement on the Prikerchensky oil and gas field.
Vanco sent the Interagency Commission its initial draft of the PSA in =
July
2006 that was adjusted several times. The Ukrainian government did not =
like
the draft proposed by Vanco and instructed the commission to prepare its =
own
version in October 2006 within three months.
The field has tentative D+2+3 reserves of 30,000 tonnes of fuel units =
per
square kilometer. No drilling has been carried out at the section. =
-30-
SANDORA JUICE COMPANY
WARSAW - The Ukrainian company Sandora occupies the leading position on the Ukrainian juice market. According to the data provided by MEMRB, Sandora's share on the Ukrainian juice market was about 47% in 2006.
What is interesting, Sandora is the only producer in the Ukraine, and =
one of
the few in East Europe, who obtained the BRC certificate - the universal
British standard, which opens the doors to networks of British =
supermarkets
Sainbury, Asda, Tesco, Waitrose) and retailers in Finland, Norway, =
Sweden
and Netherlands. -30-
Send in names and e-mail addresses for the AUR distribution list.
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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=3D=3D=3D=3D=3D=3D
5. UKRAINE'S NATIONAL NUCLEAR POWER GENERATING CO
CONFIRMS WESTRON AS ITS CORPORATE SUPPLIER
Westron was founded in 1994 by Khartron (Ukraine) and
Westinghouse Electric Company (United States).
Ukrainian News Agency, Kyiv, Ukraine, Wednesday, February 7, 2007
KYIV - The Enerhoatom national nuclear power generating company has confirmed the status of Westron, a Ukrainian-American joint venture=20 based in Kharkiv, as its corporate supplier. Westron announced this in a statement, a text of which Ukrainian News obtained.
As Ukrainian News earlier reported, Westron is an affiliate of the =
Khartron
company, a producer of electronic control systems.
Westron was founded in 1994 by Khartron (Ukraine) and Westinghouse
Electric Company (United States). The company exports its products to
Russia, Lithuania, the Czech Republic, Bulgaria, Sweden, the United =
States,
and other countries.
Enerhoatom operates the four nuclear power stations in Ukraine and =
accounts
for about 50% of the total quantity of electricity generated in the =
country.=20
NOTE: Westinghouse is a member of the Ukraine-U.S. Business=20 Council in Washington, D.C.=20
UKRAINIAN BROADCASTS BY BOTH VOA AND RADIO
FREE EUROPE/RADIO LIBERTY (RFE/RL)
Reductions to the following:
[1] Ukrainian broadcasts by both VOA and Radio Free Europe/
Radio Liberty (RFE/RL);
[2] Tibetan broadcasts by VOA and RFA;
[3] VOA Portuguese to Africa; and
[4] broadcasts in Romanian, South Slavic and Kazakh by RFE/RL.
Through its broadcast services, the BBG provides the United States and =
its
leaders direct and immediate access to a worldwide audience of 140 =
million
people. Current governors are Chairman Kenneth Y. Tomlinson, Joaquin F.
Blaya, Blanquita W. Cullum, D. Jeffrey Hirschberg, Edward E. Kaufman,
Steven J. Simmons, and Mark McKinnon. Secretary of State Condoleezza
Rice serves as an ex officio member. -30-
Irish developer also looking for investments in Ukraine
He is selling some of those refurbished baroque buildings and uses the=20
Hungarian capital to trawl for developments in Eastern Europe, notably =
in=20
neighbouring Ukraine.
"Property prices are cheaper here than in most of the neighbouring=20
countries - I can sell Budapest residential from 1,350 to 1,800 a sq m =
(32=20
to 167 per sq ft), whereas Sofia (Bulgaria) is 2,000 a sq m (185 per sq =
ft),=20
Ukraine is about 4,000 a sq m (371 per sq ft, payable in dollars) and=20
Krakow has gone very expensive at 5,500 a sq m (510 per sq ft)."
Lisney is holding a property exhibition on Zala Springs in the Westbury=20 Hotel, Dublin, this Friday and Saturday, February 9th and 10th.
NOTE: Send in a letter-to-the-editor today. Let us hear from you.
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D
8. UKRAINE MOP MANUFACTURER LOOKING FOR PARTNERS
LINCOLNWOOD, Illinois - ISSA member AVS MOP, a mop and related
products manufacturer in Ukraine, has begun exporting its products to
countries outside Ukraine and is looking for European partners, =
according
to AVS MOP's Andrey Sukhoruchkin.
AVS MOP joined ISSA in 2006. Later that year, the company attended an
exhibition in Moscow, where it secured several contracts and determined =
it
was time to expand beyond Ukraine.
For more information, contact Andrey Sukhoruchkin, Kiev, Ukraine +380 50-462-62-78; e-mail, clin2006@ukr.net. -30-
COMMENTARY AND ANALYSIS: By Valentin Zelenyuk Kyiv Post, Kyiv, Ukraine, Thursday, Feb 08 2007
A year ago, virtually everyone gave a very pessimistic forecast for =
Ukraine's=20
economic prospects in 2006-especially due to the drastic increase in the =
Nevertheless, Ukraine gave another surprise by finishing this difficult =
year=20
with one of the highest rates of economic growth in the world-about 7=20
percent growth in real GDP and about 20 percent GDP growth when valued =
in=20
USD. One might get an impression that Ukraine is doing very well. This, =
Indeed, even now, note that Ukraine's real GDP in 2006 is still under 65 =
Moreover, according to the World Bank 2006 report, the gross national =
income=20
per capita in Ukraine is only $1,520 - this is less than in Morocco=20
($1,730), Guatemala ($2,400), Albania ($2,580), Algeria ($2,730), =
Namibia=20
($2,990) and in many other developing countries!
Such a dismally poor performance can be hardly believed-given the fact =
that=20
the Ukrainian population has a relatively high level of education =
enabling=20
them to produce big airplanes, satellites and space rockets - a =
potential=20
that a majority of countries in the world lack.
What are the main reasons for such a shameful economic performance? To=20
give a brief answer, the main problem is rooted in the lack of reforms =
that=20
could liberalize the economy in Ukraine.
Indeed, since obtaining independence in 1991 and up until now, Ukraine =
has=20
been lagging behind other transitional and developing countries in terms =
of=20
implimentation of economic reforms, and has been characterized as a=20
repressed and mostly unfree economy (e.g., see indexes of economic=20
freedom by the Cato Institute and by the Heritage Foundation).
So, lagging behind in reforms has made Ukraine lag behind in terms of=20 wealth per capita as well.
The main reform that is urgently needed now is the tax reform. It is =
worth=20
noting that up until 1998, the tax burden in Ukraine was one of the =
highest=20
among all countries in the world.
These two steps helped Ukraine move away from its deep economic fall and =
Ukraine's corporate taxes, however, remain excessively burdensome in=20
Ukraine, making it less attractive than most countries in the world. =
Indeed,=20
according to various cross-country world ratings, the rank of Ukraine on =
the=20
ease of tax burden is astonishingly bad.
For example, according to a very comprehensive World Bank survey 'Doing=20
Business - 2007,' based on 10 major criteria crucial for a business, =
Ukraine=20
was ranked 174 out of 175 countries! In the 2006 version of this report, =
Ukraine was ranked 151 out of 155 - only better than Belarus and three=20 African countries, while now only Belarus is behind Ukraine.
The most recent estimates of the World Bank survey suggest that an =
average=20
firm in Ukraine has to pay about 60.3 percent of their gross profit in=20
various taxes. By all standards, the current taxation burden on =
businesses=20
in Ukraine is prohibitively high for a country that desperately needs=20
economic recovery.
More specifically, every country that achieved an economic miracle =
(e.g.,=20
Hong Kong, Singapore, South Korea, Taiwan, Ireland, Estonia, etc.) had =
low=20
taxes and liberalized markets. On the other hand, those countries that =
had=20
excessive taxation and excessive government bureaucracy (Armenia, =
Moldova,=20
North Korea, Uzbekistan, Ukraine, etc.) had economic disasters.
Many people, certainly including myself, hoped that after the Orange=20 Revolution the necessary economic reforms in Ukraine would follow=20 immediately. About two years have past but, regrettably, not much has=20 changed since then, mainly because the politicians in power were busy=20 re-electing themselves.
So, what exactly needs to be done? First and most important of all, the=20
profit tax for all firms must be reduced substantially. Indeed, it is =
the=20
excessive tax bureaucracy that creates most of the problems for the=20
Ukrainian business environment.
For example, according to the mentioned survey of the World Bank, an =
average=20
Ukrainian firm must make about 98 payments, spending about 2,185 hours =
to=20
comply with tax requirements - which is much more than in most countries =
in=20
the world.
Such bureaucracy substantially reduces the attractiveness of Ukraine for =
new=20
foreign investors, slows down existing businesses and pushes many =
businesses=20
away to other countries or into the shadow economy.
(A noteworthy factor, by various estimates, is that the shadow economy =
in=20
Ukraine is about 50 percent of its official GDP and a big portion of it =
is=20
due to a very excessive tax burden.)
Moreover, a substantial part of the shadow economy can come to the =
light.=20
As a result, economic growth in the official real GDP in Ukraine can =
easily=20
reach 10-15 percent annually for the next three to five years, with a =
decent=20
economic performance afterward.
If such reforms are implemented, they could create the true economic=20 miracle for Ukraine that we have been awaiting for the last 15 years. = -30-
security the minister of economy must have necessary tools, he added.
OF AGRICULTURAL MACHINERY IN UKRAINE=20
By Dmytro Kuzmin, Ukrainian News Agency Kyiv, Ukraine, Friday, February 2, 2007
KYIV - One of the world's largest producers of agricultural machinery,=20
the Case-New Holland company (CNH, the Netherlands) suggests the=20
Ukrahrolizynh national joint-stock leasing company to organize =
production=20
of the New Holland's agricultural machinery in Ukraine. The press =
service=20
of Ukrahrolizynh announced this in a statement.
As to the press service, Ukrahrolizynh is negotiating the world's major=20 producers of agricultural machinery with an aim of developing financial=20 programs for procurement of machinery, that is not produced in Ukraine.
According to the press service, CNH proposes three stages of=20
cooperation:
[1] The first one - shipping machinery to Ukraine for demand=20
analysis,=20
[2] the second - organization of joint production and=20
[3] the third - localization of products at up to 50% of Ukrainian=20
components.=20
As Ukrainian News earlier reported, the Cabinet of Ministers founded the =
Ukrahrolizynh company in May 1999 to lease agricultural equipment to=20
agricultural enterprises instead of the State Leasing Fund. =
Ukrahrolizynh=20
ended 2004 with a net profit of UAH 0.2 million from net revenues of=20
UAH 37 million. -30-
List of members has not been approved
By Natalya Nepryakhina, The Kommersant-Ukraine Kyiv, Ukraine, Friday, February 02, 2007
KYIV - The Kommersant-Ukraine laid its hands on a draft government resolution to set up the Council of Investors, COI, under the cabinet of ministers and to be headed by the premier [Prime Minister Viktor Yanukovych]. The draft had already been approved by the government committee on economic policy.
Government officials who had worked out the draft, could not clarify to =
The
K-U the criteria for selecting COI members who can be qualified as
investors.
ORIGINAL LIST OF 15-20 INVESTORS AND ORGANIZATIONS
The president of the State Agency for Investments and Innovations (SAII)
Viktor Ivchenko told The K-U that the original list made up of 15-20
Ukrainian and Russian investors, including, by the way, the co-owner of =
the
Industrial Union of Donbas, ISD, Serhy Taruta, the owner of Interpipe =
Viktor
Pinchuk and representatives of the European Business Association and the =
US
Chamber of Trade and Industry, was not approved by the government.
UKRAINIAN BUSINESS, FOREIGN INVESTORS & EXPERTS
Our source in the economy ministry has specified that the list will =
include
representatives of Ukrainian business, foreign investors, and experts.
Notably, the Consultative Council on Foreign Investments created in 2005
under the president of Ukraine was made up only of foreign investors.
"We are for a two-way street in the relationship of business and =
government
in order to solve the existing problems," the source told The K-U.
Meanwhile, another source in the Ukrainian Center for Promoting Foreign
Investments forecast that COI may become an alternative to the =
presidential
council.
Thus, Head of the Association of Jewelers of Ukraine Dmytro Vydolob says
these government insiders will only lobby for their interests: "I don't =
see
that the government is interested to promote competitiveness, and most
probably, COI will be made up of Ukrainian businessmen who will resolve
their own problems with cabinet assistance." -30-
Send in a letter-to-the-editor today. Let us hear from you. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D
13. YANUKOVYCH TO BECOME HIS OWN ADVISOR
Cabinet of Ministers created Council of Investors (COI) Advisory =
Body
By Antonina Bazhan, The Ekonomichna Pravda internet newsletter Business and economy by Ukrayinska Pravda,=20 Kyiv, Ukraine, Thursday, Feb. 1, 2007
Premier Yanukovych continues to build the pyramid of his power. This =
time,
he set up an office that makes him chieftain of Ukrainian investors. On =
Jan.
24, 2007, the cabinet created an advisory body, the Council of Investors
(COI) affiliated with the Cabinet of Ministers.
In all probability, COI is to become a close-knit team of moneybags =
loyal to
the government. The council will be headed - guess by whom? - by V.
Yanukovych.
REINVENTING THE WHEEL According to The Ekonomichna pravda, the Yanukovych government, acting quickly and without any notice, liquidated the Council of Entrepreneurs (COE) set up by Pres Kuchma back in the 90s and.
Accusations of the low representative level of COE were definitely made against Yulia Tymoshenko who, when premier, enrolled mainly small and medium-sized businessmen to sit on COE, unlike former Pres. Kuchma who favored tycoons.
Under the circumstances, it was unclear then what the government motives =
for
scrapping the 10-year old COE had been. To have his way, it was =
sufficient
for the premier either to enroll new members who would suit him or to
restore the format COE had in Kuchma days, a club for Ukrainian =
moneybags
like Rinat Akhmetov and Viktor Pinchuk.
However, all these arguments can be logical only in a democracy. Given =
the
Ukrainian realities, a council of businessmen with its declared opaque =
and
docile format may well be turned into a cash cow for the incumbent head =
of
the cabinet. This club of business insiders may well become a base for =
the
premier's economic self-sufficiency.
Much will depend on who Viktor Yanukovych could enroll to sit on COI and
what kind of quid pro quos he could offer to his potential sponsors. =
-30-
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FOOTNOTE: Article translated into English by Volodymyr Hrytsutenko.
ANALYSIS & COMMENTARY: Gary Reusche & Stephan Vitvitsky Kyiv Post Kyiv, Ukraine, Thursday, February 08 2007
The question of a land market in Ukraine has yet to make the transition =
from
the Soviet past. Under the Soviet Union, private property was illegal.
After 15 years of independence, land reform in Ukraine is still =
unfulfilled.
At stake is perhaps the best agricultural land in Europe, and its =
current
owners are the poor and mostly neglected rural inhabitants.
The roots of the current situation are in the Soviet era and are =
directly
related to the Holodomor, or Great Famine. During the reorganization of
rural Ukraine by the Soviets, residents were uprooted, and during the =
famine
their population was decimated. In their place were established =
collective
farms.
These collective farms are now history, with the exception that the
inheritors of the collective farms have ownership of the land, but not =
the
right to sell it. Roughly 7 million rural Ukrainians have, or will soon
have, land acts for approximately 25 million hectares of the best =
farmland
in Ukraine (and in Europe).
As discussed by agricultural expert Andriy Yarmark in a recent interview =
in
the Kyiv Post, a well-functioning land market also encourages investment =
and
increases revenue through land sales, which helps create jobs and =
enhance
rural livelihood.
The Ukrainian parliament's recent prolongation of the land moratorium =
shows
again the government's reluctance to complete its market economy =
transition
(though only the most naive will think that this situation is not =
benefiting
someone).
Although Ukraine needs an open land market now, it must be implemented =
in a
context of programs designed to assist the rural population to make the
transition, and encourage small business development.
If Ukraine is to create a land market, the government must make sure =
that it
is done legally, transparently, and most importantly, for the good of =
the
more than 15 million people living in rural areas.
Extreme poverty rates are highest in rural areas, with roughly one-third
living under a dollar a day. Simply creating a land market without =
certain
conditions in place will not necessarily improve the lives of Ukraine's
poorest residents.
Rural areas are currently vastly underserved by Ukraine's credit market. Although many major banks, such as PrivatBank, Raiffeisen Bank Aval, and ProCredit Bank, now offer small and micro-loan products, they primarily focus on urban areas. Agricultural loan products also are limited in = their scope.
According to statistics from the Ukraine Micro-Lending Program, an
EBRD-sponsored program that helps banks create micro-loan products, as =
of
mid-2006 only roughly 4,000 agricultural loans have been disbursed worth =
$20
million.
Various donor aid agencies, including the EU, USAID, and the World Bank,
have also tried to build up the credit cooperative system, known in =
Ukraine
as credit unions and cooperative banks.
These are not encouraging signs for potential landowners. Therefore, =
banks,
NGOs, and credit unions should be encouraged to extend credit in small =
towns
and rural areas, helping fill a major void in Ukraine's credit market.
Transactions would be made very slowly, disputes would be settled =
through
bribes and threats, and individuals would easily disobey the law. This =
state
would be devastating for rural areas and would further encourage =
corruption,
already a major problem in Ukraine.
Unfortunately, there is no quick and easy solution that can solve the
current land dilemma. It is high time that the government, along with =
NGOs
and development agencies, took steps to ensure that institutions and =
courts
are functional and transparent; as well as ready to handle the huge =
workload
once a land market is established. -30-
ANALYSIS & COMMENTARY: By Oleksandr Shepotylo
The Ukrainian Observer magazine #228
The Willard Group, Kyiv, Ukraine, February 2007
Recently, a friend of mine was crossing the Russian-Ukrainian border by
train. The customs officer knocked at the door of his carriage =
compartment
and asked for his documents. After careful examination, the officer said
that the registration had expired and my friend was not allowed to cross =
the
border.
Shortly, the friend came back with the stamp in the passport that =
allowed
him to cross the border. This example illustrates a more general point =
that
the rules are not strictly enforced in a country with a high level of
corruption such as Ukraine.
The vicious circle is very hard to break because it has become ingrained =
in
the Ukrainian culture and governs people's cultural code of behavior.
Adjusting numbers for the cost of living, Ukraine came in the second place - not far behind Ghana - in annual bribes paid by households=20 according to the results of a public opinion survey of about 55,000 people in 69 countries.=20
HOW COSTLY IS CORRUPTION How costly is corruption for the welfare of a country? Oddly enough, the mere fact of bribery has no direct impact on a country's gross domestic product (GDP).
Paolo Mauro - one of the first economists who empirically studied the
consequences of corruption - demonstrated that corruption reduces =
economic
growth in a country by 0.5-1 percent a year on average. For Ukraine, =
This
sum is comparable with the annual budget spent on education in Ukraine.
A corrupt government official would prefer to finance a big investment
project with very uncertain costs where it is difficult to monitor
expenditures - i.e. build a highway or an airport - rather then give =
money
for educational programs that are more transparent and easier to =
control.
CORRUPTION PERCEPTION INDEX
In 2006, Ukraine - together with the Dominican Republic, Georgia, Mali,
Mongolia, and Mozambique - occupied places 99 in the annual report on =
the
corruption perception index provided by Transparency International.
The problem of high corruption in Ukraine is well recognized by all =
parts=20
of the political spectrum. Party leaders of the ruling coalition and the
opposition publicly announced that fighting corruption should be a =
priority
in the government agenda.
On December 5, 2006, the Government of Ukraine and Millennium Challenge
Corporation - a U.S. program that seeks to reduce poverty by rewarding
countries for establishing open markets and following other good =
governance
practices - signed an agreement estimated at US $500 million as the
threshold program for development of Ukraine that would be partially =
spent
to finance an anti-corruption campaign as a part of the threshold =
program
for Ukraine.
Prime Minister Viktor Yanukovych publicly stated that figure following a meeting with US Secretary of State Condoleezza Rice. "The program will envisage actively combating corruption, which will be a priority of the current Government," Yanukovych said.
BEST WAY TO REDUCE CORRUPTION? At the same time, Ukrainian politicians are very much divided on the question of the best way to reduce corruption.
It was very clearly demonstrated during the "Svoboda Slova", a popular =
TV
show where the top government officials, parliamentarians, and experts
discuss important political and economic topics in front of a large
audience. The program was devoted to discussion on corruption in Ukraine
and was aired in December 2006.
Therefore, the administrative reform that gives more budgetary =
expenditures
to be divided at the local level suggested by the Socialist Party could =
be
beneficial for Ukraine because it would spur political competition =
between
local governments, improve their performance and lower corruption.
It is difficult to find the best anti-corruption roadmap for in Ukraine.
However, the establishment of a strategy for this purpose should not be
decided in a narrow circle of government officials or the ruling =
coalition's
leaders.
And if, on a wonderful day, people in power and the army of state
bureaucrats start behaving as role models for us by strictly following =
all
rules and regulations they have created for ordinary people, we would =
become
better citizens and stop cutting lines, violating traffic rules, and =
bribing
officials in an attempt to solve our everyday problems. -30-
Ukrainian News Agency, Kyiv, Ukraine, Thu, February 1, 2007
KYIV - One of the largest steel producers in the United States, Nucor=20
corporation has started purchase of pig iron from Makiivka-based=20
metallurgical plant (Donetsk region). Plant press service has disclosed =
this=20
to Ukrainian News.
According to press service representative, in February, Makiivka plant =
has=20
to supply 65,000 tons of pig iron to the American corporation. As =
Ukrainian=20
News earlier reported, in September 2006, Makiivka plant reported on =
Nucor=20
intention to purchase pig iron.
Russian businessman Vadim Novinsky's Smart Group (Dnipropetrovsk) =
controls=20
Makiivka metallurgical plant. 60.857% of the shares in the Makiivka=20
metallurgical mill belong to the State Property Fund of Ukraine
Acquires over 50% of Styrol chemical concern (Horlivka, Donetsk = region)
Ukrainian News Agency, Kyiv, Ukraine, Friday, February 2, 2007=20
KYIV - The Antimonopoly Committee of Ukraine has authorized Dotterbloem=20
Holding B.V. (the Netherlands) to acquire over 50% of the shares in the=20
Styrol chemical concern (Horlivka, Donetsk region). The press service of =
the=20
Antimonopoly Committee announced this to Ukrainian News.
Dotterbloem Holding B.V. performs investment and management operations.=20 It has never operated on Ukrainian territory. The company submitted the=20 relevant application to the Antimonopoly Committee on December 18.
According to the information available as of January, the =
Styrolkhiminvest=20
limited liability company owned 50.01% of the shares in Styrol while=20
individuals owed 14.19%. As Ukrainian News earlier reported, Styrol =
intends=20
to invest USD 50-80 million in production development in 2007.
You are welcome to send us names for the AUR distribution list.
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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18. USAID REALIZING TWO-YEAR $8M PROJECT TO DEVELOP
TRADE, INVESTMENT AND BUSINESS IN UKRAINE
Interfax Ukraine Economic, Kyiv, Ukraine, Wed, January 31, 2007
KYIV - The United States Agency for International Development (USAID)=20
has presented a project on trade, investment and business acceleration =
in=20
Ukraine (TIBA). According to a press release drawn up for the =
presentation,=20
the budget of the two-year project will be $8 million.
The project is aimed at providing technical aid to the Ukrainian =
government=20
and the private sector in building trade, investment and business =
capacity,=20
which is, in turn, would accelerate Ukraine's joining the international=20
economy.
reform aimed at building a favorable legal and business environment to=20 develop small and medium business in Ukraine.
that it would promote the development of private business in Ukraine.
Pressley said that the USAID project would promote further aid for =
Ukraine's=20
joining the World Trade Organization, promote aid to government =
institutions=20
after Ukraine joins the organization, and promote aid to improve the=20
environment for the development of business.
In turn, Hennadiy Bilous, the deputy head of the state committee for=20
regulatory policy and entrepreneurship of Ukraine, said that the =
two-year=20
project would improve the investment climate in Ukraine and the =
situation in=20
the trade sphere.
He said that the Ukrainian government is improving regulatory policy in=20
entrepreneurship, the permit system and the registration of procedures, =
and=20
is relaxing requirements when starting a business.
Earl Gast, Director for the USAID Regional Mission in Ukraine, Moldova =
and=20
Belarus, said that the new USAID project would build on the achievements =
of=20
the previous USAID BIZPRO project.
Commenting on the investment climate in Ukraine, Gast said that a =
gradual=20
improvement over all the years of Ukraine's independence has been seen.
Gast said that an increase in foreign investment in Ukraine and interest =
not=20
only from U.S. but also European investors confirms this improvement. In =
particular, he said that there is investment growth in Ukraine from =
Eastern=20
Europe, especially Poland, the Czech Republic and Baltic countries.
UKRAINE IN 10 DAYS; EXPECTS FURTHER INVESTMENTS
Interfax Ukraine Economic, Kyiv, Ukraine, Thursday, February 1, 2007
Ukraine within ten days and will consider expanding manufacturing =
facilities=20
in that country, Chief Executive Dariusz Manko told reporters Thursday. =
"In=20
Ukraine, production starts in ten days," Manko said.
Kety said in early 2006 it would spend PLN 40 million on the =
installation of=20
an extruded-products press in Ukraine and Manko expects further =
investments=20
in the underserved Ukrainian market.
"We have a large order-book [in Ukraine], the market is very receptive," =
the=20
CEO said. "That is why investments in just one press is unlikely to be =
the=20
extent of it." -30-
IN KHERSON DAIRY PLANT CJSC RODYCH
Interfax Ukraine Economic, Kherson, Ukraine, Friday, January 26, 2007
The sum was discussed ruing a meeting between Kherson Mayor Volodymyr Saldo and Director General of Danone Ltd. for Ukraine Stephan Batoux.
As was reported earlier, on September 7, 2006, Danone, which has been=20 working on the Ukrainian market since 1999, announced the acquisition of =
100% of CJSC Rodych dairy plant in Ukraine. The deal was completed on=20 October 2, 2006.
Danone also announced plans for 2007 to start the modernization of the=20
plant's production facilities and increase dairy production from 30,000 =
to=20
200,000 tonnes a year within 10 years. -30-
Please contact us if you no longer wish to receive the AUR =20
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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21. AUSTRIA'S MEINL LAND LTD TO MAKE FIRST INVESTMENT IN
UKRAINE WITH EUR 150 MILLION IN TRADE CENTER IN ODESA
Interfax Ukraine Economic, Kyiv, Ukraine, Sunday, January 25, 2007
KYIV - Austria's Meinl European Land Ltd. developing company plans to=20
invest around EUR 150 million in building a trade center in Odesa, =
according=20
to a company press release.
According to the release, Meinl European Land Ltd. at present does not
invest in Ukraine, although the company is consulting with local =
developers
and researching possible future investments.
Meinl European Land Ltd. operates in the real estate sphere and invests =
and
develops real estate in various countries. At present, the company plans =
to
develop in the Czech Republic, Hungary, Latvia, Estonia, Poland, =
Romania,
Russia, Slovakia, Turkey, Bulgaria and Ukraine.
As of September 30, 2006, the company's investment portfolio was EUR=20
1.233 billion, which included 150 projects in seven countries with =
revenues=20
from leasing of around EUR 105 million. -30-
Will employ 1,200 workers in Volinskiy Region
Interfax-Ukraine, Kyiv, Ukraine, Wednesday, Jan 24, 2007
LUTSK - Swiss food giant Nestle plans to invest over $50 million in =
building
a new food plant in Ukraine's Volinskiy region. The company signed the=20
relevant investment agreement on Tuesday, the press center of the =
Volinskiy
regional council said.
Nestle Ukraine was set up in 1994 and in 1998 acquired a controlling =
stake
in the confectionery company Svitoch, and in November 2003 - 100% of
Volynholding, which operates under the trade name Torchinproduct. rd
MAJOR BOOM IN EXPORTS TO RUSSIA AND UKRAINE IN 2007
"One of our main goals of our three-year strategy is to increase exports =
in
the CEE region," Santa said. "We also expect a major boom in exports to
Russia and Ukraine in 2007."
The company also operates one of the largest chocolate mass making units =
in
the CEE region in its Budapest factory, which makes Bonbonetti the most
important player on the domestic market of intermediary products, =
supplying
the Netherlands' Friesland and France's Danone, Santa said. -30-
MINI-PLANT IN ODESA REGION BY FEBRUARY
Interfax Ukraine Economic, Kyiv, Ukraine, Friday, January 26, 2007
As raw materials, Biodiesel of Bessarabia will use rapeseed crops grown =
in
Saratsky region, which expanded areas under crops in 2006 by four times =
to
12,000 ha. -30-
MAKER SIKORSKY AIRCRAFT CORPORATION
KYIV - Ukrainian President Viktor Yushchenko and Sergei Sikorsky=20 discussed cooperation between Ukrainian aircraft manufacturing firms=20 and Sikorsky Aircraft Corporation. Sergei Sikorsky, a son of the worldrenowned inventor and designer, is a cofounder of Sikorsky Aircraft=20 Corporation.
Yushchenko said at the meeting that the powerful technological and
industrial potential of Ukrainian aircraft manufacturing companies could
serve as a good foundation for the Sikorsky Aircraft Corporation's =
activity
in Ukraine, the presidential press service said on Thursday [18 =
January].
Yushchenko also confirmed his position regarding the need to open a
museum for Igor Sikorsky in Kiev. Igor Sikorsky was born in Kiev in =
1889.=20
He emigrated to the US in 1919, where he founded the Sikorsky Aero=20
Engineering Corporation in 1929. -30-
ANALYSIS & COMMENTARY: By Volodymyr Senchenko The Ukrainian Observer magazine, Issue 227 The Willard Group, Kyiv, Ukraine, January 2007
Foreigners are surprised when a Ukrainian newscaster tells viewers at =
the
end of his program: "Respect yourself, you deserve it."
Based on their own life experience, foreigners may think self-esteem is
innate and therefore Ukrainians do not need to be daily reminded that =
they
should respect themselves.
However, such a phrase is quite useful to Ukrainians. For our =
inferiority
complex, which makes us feel second-rate, petty and unimportant, is
programmed and has penetrated our outlooks and minds so deeply that=20
almost every individual Ukrainian has this ugly, shameful trait.
Average Ukrainian citizens have to suppress their indecisiveness before attracting attention.
Foreigners often notice this characteristic behavior at customs. =
Ukrainians
act humbly and show fearful respect towards uniformed strangers simply
performing their professional duties. They act as if they conceal =
something
or are guilty and so want to appear better and more modest than they =
are.
Foreigners also become bemused when Ukrainian journalists or officials =
ask
them for advice on how to act in this or that situation. Once my friend
complained to me that a foreign doctor who he asked for advice replied =
that
he himself had come to Ukraine to study the experience of Ukrainian
colleagues.
Unfortunately, there are still many people in Ukraine that think foreign
products are better, more advanced and more perfect. They are not =
guilty,
however, for they could not compare things when living behind the Iron
Curtain.
The opening of the Soviet borders blinded many Ukrainians with bright
labels, neon signs and exquisite designs. The younger generation, =
especially
pop stars, tried to derive advantages from their inferior fondness for
foreign things.
This makes foreigners believe the inferiority complex is innate in Ukrainians, which is, in fact, not true because people are born with no complexes, their behavior later being sculpted by life circumstances, education and environment. No doubt, if this environment is poor and squalid, as it is in India's caste society, it will produce certain stereotypes.
This trait is mirrored in the Russian simile, "as stubborn as =
Ukrainians."
However, doing what one believes should be done contributed to the
reputation of Ukrainians who are now good business people.
This trait somehow overshadows and muffles our lasting, aggressive and
tragic struggle for dignity. Oppressed, Ukrainians always revolted, and
there are many pages in our history showing how valorously we fought for
centuries to defend ourselves.
OBSTINATE UKRAINIANS OPPRESSED AND PRESSURED
Not only were "obstinate Ukrainians" oppressed and pressured but also =
they
were also encouraged to obey government and comply with unnatural =
commands
they were reluctant to follow.
The local elite was offered privileges and gifts in exchange for =
loyalty.
All governments ruling Ukraine did such things: Austro-Hungary, Russia, =
and
Poland. The country's leaders were given titles, lands and other =
valuables.
Our foreign rulers also tried to assimilate Ukrainians by forcing them =
to
adopt Catholicism and materially urging them to speak other languages. =
We
were not allowed to study, sing and write in Ukrainian but still sang =
our
songs without words.
That must have been done to prevent Ukrainians from looking to their =
roots,
as other Europeans do, to prove they are older than their "elder Russian
brothers."
RUSSIANS LOVED DEMONIZING UKRAINE'S HEROES
Russians also loved demonizing Ukraine's national heroes and sometimes
exterminated them physically. The names of Mazepa, Petlyara, Makhno and
Bendera were not uttered without the prefix "bandit." These names were =
used
to frighten and intimidate people.
Sometimes government ignored national priorities if a Ukrainian made =
some
invention. Such was the case with an apple variety cultivated by =
Symyrenko.
Over the years of independence, Ukrainians have been gradually =
overcoming
their inferiority complex. They revived the names of their prominent
personalities.
I remember being stunned to learn about the famous Ukrainian ballet =
master
Serge Lyfar, performing in Paris's Grande Opera, or about constructors =
of
space devices, or that constructor Glushko was among those who developed
and built the Katyusha multiple rocket launcher.
It is too early to claim we remember all our names. Many pages and names =
of
our history were torn off, deleted or misinterpreted. We still need much
time and effort to re-establish Ukraine as a historical nation.
Foreign researchers helped us see we are intelligent, educated and
industrious. That is, no doubt, a great result. At the same time, when =
being
compared with Americans and Europeans, Ukrainians see their actual
imperfections.
We have already recovered from the first shock and surprise from the
lustrous design of those devices, and that comparison has ruined the =
myth of
foreign superiority, although we thought only our military equipment was
equal to theirs. We now often see signs in shops declaring that a =
product is
produced in Ukraine and in accordance with the EU standards.
ORANGE REVOLUTION SEMINAL EVENT IN NATION'S REVIVAL
However, the greatest events that radically influenced us were the
Independence Square demonstrations of 2004, generally referred to as the
Orange Revolution. In fact, it was not a revolution at all. This became
obvious when its leaders gained power and betrayed their slogans.
It is clear that the 2004 events will be inspiring Ukrainians for =
decades.
The Maidan spirit and values will be passed on from one generation to
another.
To progress to that time, we must often tell Ukrainians: "Respect =
yourself,
you deserve it." -30-
ANALYSIS & COMMENTARY: Elisabeth Sewall, Assistant Editor Kyiv Post, Kyiv, Ukraine, Thursday, February 08 2007
A medieval Kyiv church decorated with priceless murals is at the center =
of
an escalating dispute between museum administrators and a local church
subordinate to the Moscow Patriarchate.
For the last decade or so, the 12th century Church of St. Cyril of Alexandria has been functioning as both a place of worship under the administration of the Ukrainian Orthodox Church Moscow Patriarchate (UOCMP) and as a state historical museum open to visitors.
According to a report issued last October by the National Research
Restoration Center of Ukraine, St. Cyril's fragile artworks, dating back =
to
Kyivan Rus years, need a proper microclimate to survive.
Regulation of the monument falls under the jurisdiction of the Ministry =
of
Construction, Housing and Communal Services of Ukraine. But American and
Canadian preservationists have recently begun writing petitions asking =
the
Ukrainian government to stop the UOCMP from using St. Cyril's.
Pevny said the sole purpose of the campaign is to make sure that =
Ukraine's
cultural heritage is protected for prosperity. "The issue I am raising =
is not=20
whether there are qualified and earnest individuals in the church versus =
the=20
museums."
"What I am saying is that in all of Ukraine there survives only one 12th-century monument with frescoes. It is the second most important medieval monument in all of Ukraine after the St. Sofia Cathedral. The Church of St. Cyril should be designated a historical-cultural landmark belonging to all the Ukrainian people," she said.
The Cabinet of Ministers of Ukraine recently removed 300 monuments from the protective list of historical-cultural sites, allowing them to be considered for "re-appropriation" and permanent Church use.
Pevny suspects that St. Cyril's could be on this list. -30-
THE ART OF FRESCO PAINTING IN UKRAINE
Internet Encyclopedia of Ukraine (IEU) Newsletter Dr. Marko R. Stech, Managing Director, CIUS Press Project Manager, Internet Encyclopedia of Ukraine Toronto, Ontario, Canada, February 2007
BECAUSE OF THE CURRENT CONTROVERSY REGARDING THE FATE OF THE FRESCOES OF SAINT CYRIL'S CHURCH IN KYIV,
INTERNET ENCYCLOPEDIA OF UKRAINE FEATURES: THE ART OF FRESCO PAINTING IN UKRAINE (February 2007)
In the Kyivan Rus' the fresco was the principal method of decorating =
church
interiors. While Byzantine-style mosaics were limited to the central =
part
of a church, frescoes covered all the side apses, vaults, columns and =
walls
of the side naves, and sometimes even the arch supports, galleries, =
niches,
and external portals. In Byzantium, mosaics were never mixed with =
frescoes
in the same building; this is a unique practice of Ukrainian church art.
Harmony between mosaic and fresco was achieved by using the same dominant colors. The most famous examples of this decorative system are Saint Sophia Cathedral (1037) and the Cathedral of Saint Michael's Golden-Domed Monastery (mid-12th century) in Kyiv.
After the middle of the 12th century frescoes almost completely replaced
mosaics in the decoration of church interiors. The most complete set of
frescoes from this period has been preserved in the church of Saint =
Cyril's
Monastery in Kyiv.
Learn more about the art of fresco painting in Ukraine by visiting: http://www.encyclopediaofukraine.com/featuredentry.asp or by visiting: http://www.encyclopediaofukraine.com and searching for such entries as:
FRESCO PAINTING. A method of painting on freshly plastered walls with
powdered pigments that are resistant to the erosive action of lime. =
Before
the colors are applied to the wet plaster the main lines of the =
composition
are usually traced on the preceding coat. The painting is very durable =
and
is applied to both interior and exterior walls. The origins of fresco
painting in Ukraine can be traced back to the 4th century BC.
SAINT SOPHIA CATHEDRAL. Saint Sophia Cathedral is a masterpiece of
the art and architecture of Ukraine and Europe. It was built in Kyiv at =
the
height of Kyivan Rus', in the Byzantine style, and significantly =
transformed
during the baroque period. The cathedral was founded by Grand Prince
Yaroslav the Wise and built between 1037 and 1044.
SAINT MICHAEL'S GOLDEN-DOMED MONASTERY. An Orthodox men's monastery in Kyiv. In the 1050s Prince Iziaslav Yaroslavych built Saint Demetrius's Monastery and Church in the old upper city of Kyiv, near Saint Sophia Cathedral.
Written records confirm that it was reopened by 1496. Soon afterward it
began to be known as Saint Michael's Golden-Domed Monastery, its name
being taken from the church built by Sviatopolk II Iziaslavych. Restored =
and
enlarged over the 16th century, it became one of the most popular and
wealthy monasteries in Ukraine. ...
SAINT CYRIL'S MONASTERY. A monastery founded by Grand Prince
Vsevolod Olhovych ca 1140 on the outskirts of medieval Kyiv. Its church,
Saint Cyril's, was built ca 1146. The church's frescoes are fine =
examples of
12th-century Ukrainian art and the influence of Bulgarian-Byzantine
painting on it.
Murals of saints-Saint Cyril and Saint Methodius, Saint John the =
Macedonian,
Saint Euphemios-adorn its pillars, and compositions depicting Saint =
Cyril
teaching the heretic, teaching in the cathedral, and teaching the =
emperor
are found in the southern apse. -30-
ABOUT IEU: Once completed, the Internet Encyclopedia of Ukraine will be
the most comprehensive source of information in English on Ukraine, its
history, people, geography, society, economy, and cultural heritage. =
With
over 20,000 detailed encyclopedic entries supplemented with thousands of
maps, photographs, illustrations, tables, and other graphic and/or audio
materials, this immense repository of knowledge is designed to present
Ukraine and Ukrainians to the world.
At present, only 11% of the entire planned IEU database is available on =
the
IEU site. New entries are being edited, updated, and added daily. =
However,
the successful completion of this ambitious and costly project will be
possible only with the financial aid of the IEU supporters. Become the =
IEU
supporter and help the CIUS in creating the world's most authoritative
electronic information resource about Ukraine and Ukrainians!
Sunday, February 11, 2007
Action Ukraine Report (AUR) #813, Article 29 Washington, D.C., Friday, February 9, 2006
WASHINGTON - The Kyiv Mohyla Foundation will host fundraiser in=20
the Washington/Baltimore area for a premier Ukrainian university.
=20
WHAT: Kyiv Mohyla Academy Fundraiser & Awareness Event/Dinner
WHEN: Sunday, February 11, 1:00 pm
WHERE: St. Andrews Ukrainian Orthodox Cultural Center
15100 New Hampshire Ave., Silver Spring, MD 20905=20
=20
Please make reservations prior to the event by calling:=20
301-593-5316 (Valentyn Zabijaka); or 301-873-2035 (Andriy Bihun);=20
or 773-685-1828 (Marta Farion)
GENEALOGICAL RESEARCH=20
RE: John D. Pihach, Ukrainian Genealogy: A Beginner's Guide CIUS Pres, 272 pp., $54.95 (cloth). $34.95 (paper)
John D. Pihach's Ukrainian Genealogy is a guide to tracing one's =
Ukrainian=20
ancestry in Europe. Consideration is also given to North American =
records=20
that are specifically Ukrainian or relate to the immigrant experience.
Because the overwhelming majority of people of Ukrainian origin in =
Canada=20
and the United States have roots in western Ukraine or southeastern =
Poland,=20
the guide concentrates on the resources of those regions.
This handbook is intended primarily for those whose ethnic roots are=20
Ukrainian, although some of the material in it may be useful to other =
groups=20
with roots in Ukraine.
Chapters 1 and 2 discuss general topics that are preliminary to =
research.=20
Personal names are examined in chapter 3. Chapters 4 and 5 outline the =
early=20
religious experiences of Ukrainians in North America and the church =
records=20
that are available. Chapter 6 addresses the crucial question of =
determining=20
the name of the European ancestral community.
Several appendixes describe Ukrainian transliteration schemes and =
present a=20
key to the scripts of the languages that were used in record keeping;=20
provide a starting point for research by other ethnic groups with roots =
in=20
Ukraine; and list useful Web sites.
Orders can be placed online at:
http://www.utoronto.ca/cius/publications/books/ukrainiangenealogy.htm
and by: e-mail: cius@ualberta.ca; telephone: (780) 492-2973 between=20
8:30 am and 4:30 pm (MST). fax: (780) 492-4967.
SPECIAL OFFER: MORE FOR LESS (valid only through Web site)
Buy the paperback edition of this book together with Ukrainians in =
Canada:=20
The Formative Years, 1891-1924 (cloth, $49.95) and save 20%
[Total Regular Price: $34.95 + $49.95 =3D $84.90]Purchase Together: =
$67.92
CIUS Press is the largest publisher of English-language material about=20 Ukraine. It is the publishing arm of the Canadian Institute of Ukrainian =
Studies at the University of Alberta and the University of Toronto. The=20 emergence of Ukraine as an independent state has focused general and=20 scholarly interest on Ukrainian studies, and CIUS Press is meeting that=20 interest and need with a sizeable offering of new, forthcoming, and=20 already published books.
If you are receiving more than one copy of the AUR please contact us. =
Please contact us if you no longer wish to receive the AUR. =20
You are welcome to send us names for the AUR distribution list. If you are missing some issues of the AUR please let us know. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D
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<DIV><FONT color=3D#000080 size=3D5><FONT size=3D6><STRONG>ACTION =
UKRAINE REPORT -=20
AUR</STRONG></FONT></FONT><FONT color=3D#000080><STRONG><FONT=20
size=3D6> </FONT></S=
TRONG> </FONT><FONT=20
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<DIV><FONT color=3D#000080 size=3D5><FONT=20
size=3D4> &nbs=
p; An=20
International Newsletter, The Latest,=20
Up-To-Date</FONT><BR></FONT> &nb=
sp; &nbs=
p;=20
<FONT color=3D#000080>In-Depth Ukrainian News, Analysis and=20
Commentary</FONT><BR><BR> =
&=
nbsp;<FONT=20
color=3D#800000> Ukrainian History, Culture, Arts, Business,=20
Religion,<BR> Sports, =
Government, and=20
Politics, in Ukraine and Around the=20
World </FONT></DIV>
<DIV> &n=
bsp; <ST=
RONG> </STRONG></DIV>
<DIV><FONT color=3D#000080 size=3D4><STRONG>ACTION UKRAINE REPORT - AUR =
- Number=20
813</STRONG></FONT></DIV>
<DIV><FONT color=3D#000080>Mr. E. Morgan Williams, Publisher and =
Editor,=20
SigmaBleyzer</FONT></DIV>
<DIV><FONT color=3D#000080 size=3D4>WASHINGTON, D.C., =
FRIDAY, FEBRUARY 9,=20
2007</FONT></DIV>
<DIV><FONT=20
face=3DArial></FONT><BR> <STRONG=
> =20
<FONT size=3D5> -</FONT></STRONG><STRONG><FONT size=3D5>------- =
<FONT=20
color=3D#000080>INDEX OF ARTICLES =
</FONT>--------</FONT></STRONG></DIV>
<DIV> <FONT=20
color=3D#800000> Clicking on the title of any article takes=20
you directly to the=20
article.  =
; </FONT></DIV>
<DIV><FONT color=3D#800000> Return to the Index by =
clicking=20
on Return to Index at the end of each article</FONT></DIV>
<DIV><BR>1<A=20
name=3Di1>.</A> &nbs=
p; <A=20
href=3D"#a1">SWEDEN'S TOP BANK BUYS INTO UKRAINE<BR></A>By David Ibison =
in=20
Stockholm and Roman Olearchyk in Kiev<BR>Financial Times, London, UK, =
Thursday,=20
February 8 2007<BR><BR>2<A=20
name=3Di2>. &n=
bsp; <A=20
href=3D"#a2">UKRAINE'S CREDIT RATING MAY BE=20
RAISED</A><BR>  =
; =
=20
<A href=3D"#a2">BY MOODY'S, S&P ON=20
GROWTH</A><BR>Bloomberg News, London, UK, Thursday, 08 Feb =
2007<BR><BR>3<A=20
name=3Di3>. </A> <A =
href=3D"#a3">UKRAINE=20
OFFERS VANCO 50% OF PRIKERCHENSKY</A> </DIV>
<DIV> <A href=3D"#a3">OIL AND GAS FIELD =
DURING=20
INDUSTRIAL PRODUCTION</A> <BR>Interfax - Russia, Kyiv, Ukraine, Tuesday, =
Feb 06,=20
2007<BR><BR>4<A name=3Di4>. <A href=3D"#a4">BRC CERTIFICATE OPENS =
EXPORT DOOR=20
FOR=20
UKRAINE'S</A><BR> &n=
bsp; =20
<A=20
href=3D"#a4">SANDORA JUICE COMPANY<BR></A>FreshPlaza correspondent =
Poland,=20
FreshPlaza<BR>Hertenkamp, The Netherlands, Thursday, February 8, =
2007<BR><BR>5<A=20
name=3Di5>. <A href=3D"#a5">UKRAINE'S NATIONAL NUCLEAR POWER =
GENERATING=20
CO</A><BR> <A =
href=3D"#a5">CONFIRMS=20
WESTRON AS ITS CORPORATE=20
SUPPLIER<BR></A> &nb=
sp;=20
Westron was founded in 1994 by Khartron (Ukraine)=20
and<BR> =
=20
Westinghouse Electric Company (United States).<BR>Ukrainian News Agency, =
Kyiv,=20
Ukraine, Wednesday, February 7, 2007<BR><BR>6<A name=3Di6>. <A=20
href=3D"#a6">U.S. BROADCASTING BUDGET PROPOSES REDUCTIONS=20
FOR</A><BR> <A=20
href=3D"#a6">UKRAINIAN BROADCASTS BY BOTH VOA AND=20
RADIO</A><BR> =
=20
<A href=3D"#a6">FREE EUROPE/RADIO LIBERTY=20
(RFE/RL</A>)<BR>Broadcasting Board of Governors<BR>Washington, D.C., =
Monday,=20
February 05, 2007<BR><BR>7<A name=3Di7>. <A =
href=3D"#a7">HUNGARY'S STILL=20
HOT, FROM BUDAPEST TO=20
BALATON</A><BR> &nbs=
p;=20
Irish developer also looking for investments in=20
Ukraine<BR>Kevin O'Conner, Irish Times, Ireland, Thursday, Feb 08,=20
2007<BR><BR>8<A name=3Di8>. <A href=3D"#a8">UKRAINE MOP =
MANUFACTURER LOOKING=20
FOR PARTNERS</A><BR>ISSA News, The Experts on Cleaning and=20
Maintenance<BR>Lincolnwood, Illinois, Wednesday, February 7, =
2007<BR><BR>9<A=20
name=3Di9>. <A=20
href=3D"#a9">UKRAINE: 2006 - A YEAR OF ECONOMIC =
SUCCESS?<BR></A>COMMENTARY AND=20
ANALYSIS: By Valentin Zelenyuk<BR>Kyiv Post, Kyiv, Ukraine, Thursday, =
Feb 08=20
2007<BR><BR>10<A name=3Di10>. <A href=3D"#a10">POLISH =
MINISTER=20
URGES U.S. INTEREST IN=20
PLANNED</A><BR> &nbs=
p;  =
; =20
<A href=3D"#a10">UKRAINE-POLAND OIL PIPELINE</A><BR>PAP news agency, =
Warsaw,=20
Poland, Tuesday, 6 Feb 07<BR><BR>11<A name=3Di11>. <A=20
href=3D"#a11">CASE-NEW HOLLAND OFFERS STATE AGRICULTURAL</A><BR> =
<A=20
href=3D"#a11">LEASING COMPANY PROGRAM TO ORGANIZE PRODUCTION</A>=20
<BR> =20
<A href=3D"#a11">OF AGRICULTURAL MACHINERY IN =
UKRAINE</A>=20
<BR>By Dmytro Kuzmin, Ukrainian News Agency<BR>Kyiv, Ukraine, Friday, =
February=20
2, 2007<BR><BR>12<A name=3Di12>. <A href=3D"#a12">FORMATION OF =
COUNCIL OF=20
INVESTORS (COI)=20
POSTPONED</A><BR> &n=
bsp; &nb=
sp; =20
List of members has not been approved<BR>By Natalya Nepryakhina, The=20
Kommersant-Ukraine<BR>Kyiv, Ukraine, Friday, February 02, =
2007<BR><BR>13<A=20
name=3Di13>. =
<A=20
href=3D"#a13">YANUKOVYCH TO BECOME HIS OWN=20
ADVISOR</A><BR> Cabinet of Ministers created Council of =
Investors (COI) Advisory Body<BR>By Antonina Bazhan, The Ekonomichna =
Pravda=20
internet newsletter<BR>Business and economy by Ukrayinska Pravda, </DIV>
<DIV>Kyiv, Ukraine, Thursday, Feb. 1, 2007<BR><BR>14<A=20
name=3Di14>. &=
nbsp; =20
<A href=3D"#a14">A FAIR LAND MARKET OR A LAND GRAB?<BR></A>ANALYSIS =
&=20
COMMENTARY: Gary Reusche & Stephan Vitvitsky<BR>Kyiv Post Kyiv, =
Ukraine,=20
Thursday, February 08 2007<BR><BR>15<A =
name=3Di15>. <A=20
href=3D"#a15">UKRAINE: THE ECONOMIC EFFECTS OF =
CORRUPTION</A><BR>ANALYSIS &=20
COMMENTARY: By Oleksandr Shepotylo<BR>The Ukrainian Observer magazine=20
#228<BR>The Willard Group, Kyiv, Ukraine, February 2007<BR><BR>16<A=20
name=3Di16>. <A href=3D"#a16">LARGE U.S. STEEL PRODUCER NUCOR =
STARTS=20
PURCHASE</A> </DIV>
<DIV><A href=3D"#a16">OF PIG IRON FROM DONETSK REGION METALLURGICAL =
PLANT</A><BR>Ukrainian News Agency, Kyiv, Ukraine, Thu, February 1,=20
2007<BR><BR>17<A name=3Di17>. <A href=3D"#a17">NETHERLANDS CO =
INVESTS IN=20
UKRAINE FOR FIRST TIME<BR></A> Acquires over 50% of =
Styrol=20
chemical concern (Horlivka, Donetsk region)<BR>Ukrainian News Agency, =
Kyiv,=20
Ukraine, Friday, February 2, 2007 <BR><BR>18<A name=3Di18>. <A=20
href=3D"#a18">USAID REALIZING TWO-YEAR $8M PROJECT TO=20
DEVELOP<BR></A> &nbs=
p; <A=20
href=3D"#a18">TRADE, INVESTMENT AND BUSINESS IN UKRAINE<BR></A>Interfax =
Ukraine=20
Economic, Kyiv, Ukraine, Wed, January 31, 2007<BR><BR>19<A=20
name=3Di19>. <A href=3D"#a19">POLISH ALUMINUM KETY TO =
LAUNCH=20
PRODUCTION IN<BR></A> <A =
href=3D"#a19">UKRAINE=20
IN 10 DAYS; EXPECTS FURTHER INVESTMENTS<BR></A>Interfax Ukraine =
Economic, Kyiv,=20
Ukraine, Thursday, February 1, 2007<BR><BR>20<A name=3Di20>. <A=20
href=3D"#a20">FRENCH GROUP DANONE TO INVEST OVER EUR 20 M=20
IN<BR></A> &nb=
sp; =20
<A href=3D"#a20">KHERSON DAIRY PLANT CJSC =
RODYCH</A><BR>Interfax=20
Ukraine Economic, Kherson, Ukraine, Friday, January 26, 2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>21<A name=3Di21>. <A href=3D"#a21">AUSTRIA'S MEINL LAND LTD TO MAKE =
FIRST=20
INVESTMENT IN</A><BR> <A href=3D"#a21">UKRAINE =
WITH EUR=20
150 MILLION IN TRADE CENTER IN ODESA</A><BR>Interfax Ukraine Economic, =
Kyiv,=20
Ukraine, Sunday, January 25, 2007<BR></DIV>
<DIV> </DIV>
<DIV>22<A name=3Di22>. <A href=3D"#a22">UKRAINE: NESTLE TO INVEST OVER =
$50 MLN IN=20
NEW=20
PLANT </A><BR> =
=
Will employ 1,200 workers in Volinskiy Region<BR>Interfax-Ukraine, Kyiv, =
Ukraine, Wednesday, Jan 24, 2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>23<A name=3Di23>. <A href=3D"#a23">HUNGARIAN SWEETS =
MAKER=20
BONBONETTI EXPECTS A</A> </DIV>
<DIV> <A href=3D"#a23">MAJOR BOOM IN EXPORTS TO RUSSIA =
AND=20
UKRAINE IN 2007<BR></A>Interfax Central Europe, Budapest, Hungary, Thu, =
January=20
25, 2007</DIV>
<DIV> </DIV>
<DIV>24<A name=3Di24>. <A href=3D"#a24">BIODIESEL OF =
BESSARABIA TO=20
LAUNCH=20
BIOETHANOL<BR></A> &=
nbsp; =20
<A href=3D"#a24">MINI-PLANT IN ODESA REGION BY =
FEBRUARY<BR></A>Interfax=20
Ukraine Economic, Kyiv, Ukraine, Friday, January 26, 2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>25<A name=3Di25>. <A href=3D"#a25">UKRAINIAN PRESIDENT =
MEETS WITH=20
U.S.=20
HELICOPTER</A><BR> &=
nbsp; =20
<A href=3D"#a25">MAKER SIKORSKY AIRCRAFT CORPORATION</A><BR>Interfax-AVN =
military=20
news agency website, Moscow, in English 18 Jan 07<BR>BBC Monitoring =
Service,=20
United Kingdom, Thursday, Jan 18, 2007<BR></DIV>
<DIV> </DIV>
<DIV>26<A=20
name=3Di26>. &=
nbsp;<A=20
href=3D"#a26">UKRAINIANS: THE INFERIORITY SYNDROME?<BR></A>ANALYSIS =
&=20
COMMENTARY: By Volodymyr Senchenko<BR>The Ukrainian Observer magazine, =
Issue=20
227<BR>The Willard Group, Kyiv, Ukraine, January 2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>27<A name=3Di27>. <A href=3D"#a27">STRUGGLE =
ERUPTS OVER=20
ANCIENT CHURCH IN KYIV</A><BR>ANALYSIS & COMMENTARY: Elisabeth =
Sewall,=20
Assistant Editor<BR>Kyiv Post, Kyiv, Ukraine, Thursday, February 08 =
2007</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>28<A name=3Di28>. <A href=3D"#a28">INTERNET ENCYCLOPEDIA OF =
UKRAINE (IEU)=20
FEATURES:<BR></A> &n=
bsp; <A=20
href=3D"#a28">THE ART OF FRESCO PAINTING IN UKRAINE<BR></A>Internet =
Encyclopedia=20
of Ukraine Newsletter<BR>Dr. Marko R. Stech, Managing Director, CIUS=20
Press<BR>Project Manager, Internet Encyclopedia of Ukraine<BR>Toronto, =
Ontario,=20
Canada, February 2007</DIV>
<DIV> </DIV>
<DIV>29<A name=3Di29>. </A><A href=3D"#a29">KYIV MOHYLA ACADEMY =
FUNDRAISER IN=20
WASHINGTON </A><FONT=20
face=3DArial> =
=20
</FONT></DIV>
<DIV> &n=
bsp; &nb=
sp; =20
Sunday, February 11, 2007</DIV>
<DIV>Action Ukraine Report (AUR) #813, Article 29</DIV>
<DIV>Washington, D.C., Friday, February 9, 2006</DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>30<A name=3Di30>. <A =
href=3D"#a30">CIUS=20
PRESS PRESENTS A GUIDE FOR=20
UKRAINIAN<BR></A> &n=
bsp; &nb=
sp; =20
<A href=3D"#a30">GENEALOGICAL RESEARCH </A></DIV>
<DIV>CIUS Press, University of Alberta, Edmonton, AB, Canada, Feb,=20
2007<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>1<A=20
name=3Da1>. </A> <STRONG><FONT =
color=3D#000080=20
size=3D4> </FONT></STRONG><FONT color=3D#000080 =
size=3D4><STRONG>SWEDEN'S=20
TOP BANK BUYS INTO UKRAINE<BR></STRONG></FONT><BR>By David Ibison in =
Stockholm=20
and Roman Olearchyk in Kiev<BR>Financial Times, London, UK, Thursday, =
February 8=20
2007<BR><BR>Swedbank, Sweden's largest bank, is to acquire Ukraine's=20
TAS-Kommerzbank<BR>for up to $985m, continuing the eastward expansion of =
TAS-Kommerzbank,<BR>Ukraine's 13th-largest lender, for $735m plus an =
additional=20
$250m in three<BR>years if the bank's performance meets certain =
undisclosed=20
criteria.<BR><BR>Sweden's largest banks are expanding into the Baltics, =
eastern=20
and central<BR>Europe and Russia, driven by surging economies in those =
regions=20
and<BR>populations there that are relatively new to sophisticated =
banking=20
services<BR>and products.<BR><BR>Swedbank and SEB, another Swedish bank, =
control=20
70 per cent of the Baltic<BR>banking market between them and derive up =
to a=20
quarter of net profits from<BR>the region.<BR><BR>Yesterday's =
acquisition=20
provides further proof that Ukraine's banking sector<BR>is poised for a =
period=20
of acquisitions. Foreign ownership of Ukrainian banks<BR>is about 25 per =
cent=20
compared with 70 per cent in Poland and 90 per cent in<BR>the Czech=20
Republic.<BR><BR>Several European banking groups, including the National =
Bank of=20
Greece, are<BR>close to completing acquisitions of two other Ukrainian =
banks,=20
Forum and<BR>Kreditprombank, and a handful of medium-sized banks are =
also for=20
sale.<BR><BR>Ukraine has a population of 47m, nine times larger than =
Sweden's,=20
but its<BR>per capita gross domestic product is languishing at about =
$1,771,=20
well<BR>behind its central and eastern European neighbours. However, an=20
expected<BR>compound annual growth rate of 5.3 per cent over the next =
five years=20
is<BR>expected to narrow this gap.<BR><BR>TAS-Kommerzbank was founded in =
1989=20
and has 170 branches nationwide.<BR>Its net interest margin in 2006 was =
6.5 per=20
cent, down from 8.6 per cent in<BR>2004 and 7.5 per cent last =
year.<BR><BR>It=20
has total loans $834m, although non-performing loan figures were=20
not<BR>disclosed. Its cost income ratio is 54 per cent, down from last =
year's=20
58<BR>per cent but up from 2004's 39 per cent. Since 2004 it has more=20
than<BR>doubled its workforce and expanded its branch=20
network.<BR>-------------------------------------------------------------=
--------------------------------<BR><A=20
href=3D"http://www.ft.com/cms/s/4782e638-b719-11db-8bc2-0000779e2340.html=
">http://www.ft.com/cms/s/4782e638-b719-11db-8bc2-0000779e2340.html</A><B=
R>-----------------------------------------------------------------------=
--------------------------</DIV>
<DIV>[<A href=3D"#i1">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]</DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>2<A=20
name=3Da2>.</A> <STRONG><FONT color=3D#000080 =
size=3D4> =20
</FONT></STRONG><FONT color=3D#000080 size=3D4><STRONG>UKRAINE'S CREDIT =
RATING MAY=20
BE=20
RAISED<BR> &nb=
sp; =20
BY MOODY'S, S&P ON GROWTH<BR></STRONG></FONT><BR>Bloomberg News, =
London,=20
UK, Thursday, 08 Feb 2007<BR><BR>Ukraine's credit ratings may be =
lifted=20
this year by international credit <BR>agencies including Moody's =
Investors=20
Service and Standard & Poor's </DIV>
<DIV>as high prices for steel and grain drive economic =
growth.<BR><BR><FONT=20
color=3D#800000>Ukraine is the biggest former Soviet state with credit =
ratings=20
below <BR>investment grade, a legacy of political instability and delays =
in=20
selling <BR>state assets and gaining membership of the =
WTO.<BR><BR>"Ukraine's=20
rating is B1, which is very low," said Jonathan Schisser, a <BR>Moody's =
analyst=20
in London by telephone. "We may raise it" though the </FONT></DIV>
<DIV><FONT color=3D#800000>timing "depends on political stability and =
the=20
government's ability to carry </FONT></DIV>
<DIV><FONT color=3D#800000>out structural =
reforms."<BR></FONT><BR>Ukraine, a=20
country of 47 million bordering the EU and Russia, seeks higher =
<BR>credit=20
ratings to reduce borrowing costs and win more overseas=20
investment.<BR><BR>Foreign direct investment since the collapse of =
communism in=20
1991 totals $20 <BR>billion, less than a fifth of the amount lured by=20
neighboring Poland. Higher <BR>credit ratings mean lower debt costs for =
the=20
government and Ukrainian <BR>companies.<BR><BR>Ukraine's 7.65% benchmark =
foreign</DIV>
<DIV>policies.<BR><BR>Yushchenko seeks to bring the country into the =
European=20
Union and NATO. <BR>Yanukovych, who aims to rekindle links with Russia, =
has=20
taken control over <BR>some presidential powers, a move Yushchenko is=20
challenging through the <BR>courts.<BR><BR>"The situation there is not=20
fantastically improving, but it is stabilizing," <BR>Standard & =
Poor's=20
analyst Helena Hessel said in a telephone interview in New <BR>York. =
"The main=20
constraint" on a ratings upgrade"is the political situation, <BR>as the=20
president is losing power and the prime minister is opposing =
him."<BR><BR>Still,=20
economic growth averaged 8.4% in the past five years and GDP has more =
<BR>than=20
tripled from $30 billion in 1998, when the nation defaulted on hundreds =
<BR>of=20
millions of dollars in debt, devalued its currency and eroded=20
reserves.<BR><BR>"We expect the rating agencies to respond to the =
improved=20
credit <BR>fundamentals by delivering rating upgrades this year," Tim =
Ash, the=20
managing <BR>director at Bear Stearns International Ltd., said in =
e-mailed=20
comment on <BR>February 7. "Ukraine's rating at four to five notches =
behind=20
Russia appears <BR>somewhat unjust."<BR><BR>Russia is rated Baa2 by =
Moody's,=20
BBB+ by S&P, BBB+ by Fitch. Poland, </DIV>
<DIV>which joined the EU in 2004, is rated A2 by Moody's, A- by S&P, =
A-=20
by</DIV>
<DIV>Fitch.<BR><BR><FONT color=3D#800000>Exports including steel and =
grain and=20
proceeds from shipping Russian gas via <BR>Ukrainian pipelines to Europe =
make up=20
more than half of GDP. The economy is <BR>forecast to expand 6% a year =
through=20
2011, said Economy Minister Oleksandr <BR>Makukha on January=20
30.<BR><BR></FONT>Ukrainian steel was traded at $455 per ton on the spot =
market=20
February 5, <BR>compared with $312 per ton a year ago, according to =
Bloomberg=20
data.<BR><BR>Average prices for Ukrainian steel will increase 5% to 7% =
this year=20
from a <BR>year ago, analysts say, including Ivan Kharchuk, an analyst =
at=20
Kiev-based <BR>largest brokerage Dragon Capital.<BR><BR><FONT=20
color=3D#800000>Average prices for Ukrainian grain were $153 per ton in =
January=20
this year, <BR>compared with $85 per ton a year ago, Bloomberg data =
shows. "We=20
</FONT></DIV>
<DIV><FONT color=3D#800000>believe there is a good prospect of an =
upgrade," said=20
Ed Parker, a senior </FONT></DIV>
<DIV><FONT color=3D#800000>director at Fitch sovereign group in London, =
in an=20
e-mailed statement."<BR></FONT><BR>Although Ukraine is likely to be =
subject to=20
political noise for the <BR>foreseeable future, Fitch believes that =
political=20
risk is of a lower order <BR>of magnitude than two-three years=20
ago."<BR><BR>Moody's raised Ukraine's outlook to positive from stable in =
November, <BR>indicating it is ready to improve the rating. The foreign =
and=20
local issuer <BR>default rating was affirmed at B1, four steps below =
investment=20
grade. </DIV>
<DIV>Fitch raised Ukraine's outlook to positive a month before =
that.<BR><BR>The=20
foreign and local issuer default rating was affirmed at BB-, three steps =
<BR>below investment grade. S&P kept its long-term foreign debt =
rating at=20
BB-, <BR>its long-term local debt rating at BB and its short-term =
sovereign=20
credit <BR>rating at B, the company said in a statement in July. The =
outlook=20
remained <BR>"stable," S&P=20
said. &n=
bsp; &nb=
sp; =20
-30-<BR>-----------------------------------------------------------------=
-------------------------------</DIV>
<DIV>[<A href=3D"#i2">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>3<A=20
name=3Da3>.</A> <FONT color=3D#000080 size=3D4><STRONG>UKRAINE =
OFFERS VANCO 50%=20
OF PRIKERCHENSKY </STRONG></FONT></DIV>
<DIV><FONT color=3D#000080 size=3D4><STRONG> OIL AND GAS FIELD =
DURING=20
INDUSTRIAL PRODUCTION <BR></STRONG></FONT><BR>Interfax - Russia, Kyiv, =
Ukraine,=20
Tuesday, Feb 06, 2007<BR><BR>KYIV - Ukraine is proposing that Vanco=20
International Limited sign a<BR>production sharing agreement (PSA) on =
the=20
Prikerchensky oil and gas field </DIV>
<DIV>in a proportion of 60:40 during industrial testing and 50:50 during =
industrial<BR>production, Environmental Protection Minister Vasyl =
Dzharty told=20
reporters<BR>on Tuesday in Kyiv.<BR><BR>The PSA preparations with Vanco =
are in=20
the final stages, Dzharty said. "The<BR>document will be sent off next =
week,=20
will be agreed on and will already be<BR>signed within a month. There =
are no=20
more major problems [with Vanco]," he<BR>said. "We have prepared these =
terms and=20
I think that Vanco will agree to<BR>them," he said.<BR><BR>Vanco =
International,=20
a subsidiary of Vanco Energy Company, in April 2006 won<BR>a tender =
announced by=20
the Ukrainian government on the right to reach a PSA<BR>agreement on the =
Prikerchensky oil and gas field.<BR><BR>Vanco sent the Interagency =
Commission=20
its initial draft of the PSA in July<BR>2006 that was adjusted several =
times.=20
The Ukrainian government did not like<BR>the draft proposed by Vanco and =
instructed the commission to prepare its own<BR>version in October 2006 =
within=20
three months.<BR><BR>Covering 3.2 million acres (12,960 square =
kilometers), the=20
Prikerchensky PSA<BR>Tender Area is located offshore the Crimea near the =
Kerch=20
region. In its<BR>northern shallower part, the Tender Area contains a =
prominent=20
Tertiary<BR>folded belt with numerous prospective structures similar to =
the=20
recently<BR>announced Subbotina oil and gas discovery.<BR><BR>The field =
has=20
tentative D+2+3 reserves of 30,000 tonnes of fuel units per<BR>square =
kilometer.=20
No drilling has been carried out at the section. =20
-30-<BR>-----------------------------------------------------------------=
-------------------------------<BR>[<A=20
href=3D"#i3">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]</DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>4<A=20
name=3Da4>.</A> <FONT color=3D#000080>BRC CERTIFICATE OPENS EXPORT =
DOOR FOR=20
UKRAINE'S<BR> =
=20
SANDORA =
JUICE=20
COMPANY</FONT><BR><BR>FreshPlaza correspondent Poland, =
FreshPlaza<BR>Hertenkamp,=20
The Netherlands, Thursday, February 8, 2007<BR><BR>WARSAW - The =
Ukrainian=20
company Sandora occupies the leading position<BR>on the Ukrainian juice =
market.=20
According to the data provided by MEMRB,<BR>Sandora's share on the =
Ukrainian=20
juice market was about 47% in 2006.<BR><BR>Last year, the company's =
sales grew=20
by 26% in comparison with data from<BR>2005. In 2005 Sandora produced =
409,3=20
million units of production (juice +<BR>wine), in 2006 - 536,1 million=20
units.<BR><BR>The production is exported to 24 countries, and Sandora is =
already=20
leader in<BR>juice markets of Belarus, Moldova, Azerbaijan, Armenia and=20
Kirgizstan. An<BR>increase in export sales in 2006 - in comparison with =
2005 -=20
was about 40%.<BR><BR>2006 became the year of active development and =
expansion=20
of technical and<BR>production capacities for Sandora, which will give =
company=20
possibility of<BR>increasing juice production by another 24% (wine - by =
15%) in=20
2007.<BR><BR>In 2006, the company opened a new plant with an investments =
of 20=20
million $.<BR>The new enterprise is equipped with 5 production lines =
with a=20
production<BR>capacity of 400 million units per year (next two =
additional new=20
production<BR>lines will make possible to increase the production =
capacities to=20
575<BR>millions units per year).<BR><BR>But to its final designed =
capacity - 670=20
mln units per year - will be<BR>reached by the end of 2007, according to =
company's forecast.<BR><BR>What is interesting, Sandora is the only =
producer in=20
the Ukraine, and one of<BR>the few in East Europe, who obtained the BRC=20
certificate - the universal<BR>British standard, which opens the doors =
to=20
networks of British supermarkets<BR>Sainbury, Asda, Tesco, Waitrose) and =
retailers in Finland, Norway, Sweden<BR>and=20
Netherlands. &=
nbsp; &n=
bsp; &nb=
sp; =20
-30-<BR>-----------------------------------------------------------------=
------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.freshplaza.com/2007/0208/1-7_ua_brc.htm">http://www.fr=
eshplaza.com/2007/0208/1-7_ua_brc.htm</A><BR></DIV>
<DIV>--------------------------------------------------------------------=
----------------------------</DIV>
<DIV>[<A href=3D"#i4">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV> <FONT color=3D#800000> <FONT size=3D4>Send in =
names and=20
e-mail addresses for the AUR distribution=20
list.<BR></FONT></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>5<A=20
name=3Da5>.</A> <FONT color=3D#000080>UKRAINE'S NATIONAL NUCLEAR =
POWER=20
GENERATING CO<BR> =
CONFIRMS=20
WESTRON AS ITS CORPORATE=20
SUPPLIER<BR> &=
nbsp; =20
Westron was founded in 1994 by Khartron (Ukraine)=20
and<BR> =
=20
Westinghouse Electric Company (United =
States).<BR></FONT><BR>Ukrainian=20
News Agency, Kyiv, Ukraine, Wednesday, February 7, 2007<BR><BR>KYIV - =
The=20
Enerhoatom national nuclear power generating company has<BR>confirmed =
the status=20
of Westron, a Ukrainian-American joint venture </DIV>
<DIV>based in Kharkiv, as its corporate supplier. Westron announced this =
in=20
a<BR>statement, a text of which Ukrainian News =
obtained.<BR><BR>Enerhoatom=20
granted Westron the status of its corporate supplier in late<BR>January, =
thus=20
granting it the rights of developer, supplier, and chief<BR>installer of =
automated systems for controlling technological processes,<BR>software =
for=20
control and management systems, and electronic equipment<BR>at all =
nuclear power=20
stations. The status is valid until January 10, 2010.<BR><BR>According =
to the=20
statement, Enerhoatom made this decision based on the<BR>results of an =
audit it=20
conducted. The audit was conducted in connection<BR>with the expiration =
of a=20
similar decision that the company made in 2004.<BR><BR>As Ukrainian News =
earlier=20
reported, Westron is an affiliate of the Khartron<BR>company, a producer =
of=20
electronic control systems.<BR><BR>Westron specializes in development =
and=20
production of automatic systems<BR>for managing technological processes =
at=20
nuclear and thermoelectric power<BR>stations as well as for other =
industrial=20
facilities.<BR><BR><FONT color=3D#800000>Westron was founded in 1994 by =
Khartron=20
(Ukraine) and Westinghouse<BR>Electric Company (United States). The =
company=20
exports its products to<BR>Russia, Lithuania, the Czech Republic, =
Bulgaria,=20
Sweden, the United States,<BR>and other =
countries.<BR></FONT><BR>Enerhoatom=20
intends to invest UAH 257 million in modernization, improving<BR>safety, =
and=20
extending the service lives of reactors at nuclear power plants<BR>in=20
2007.<BR><BR>Enerhoatom operates the four nuclear power stations in =
Ukraine and=20
accounts<BR>for about 50% of the total quantity of electricity generated =
in the=20
country. </DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>
<DIV>NOTE: Westinghouse is a member of the Ukraine-U.S. =
Business=20
</DIV>
<DIV>Council in Washington, D.C. </DIV></DIV>
<DIV>--------------------------------------------------------------------=
----------------------------</DIV>
<DIV>[<A href=3D"#i5">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D <BR>6<A=
=20
name=3Da6>.</A> <FONT color=3D#000080>U.S. BROADCASTING BUDGET =
PROPOSES=20
REDUCTIONS FOR<BR> =
UKRAINIAN BROADCASTS BY BOTH VOA AND=20
RADIO<BR> &nbs=
p; =20
FREE EUROPE/RADIO LIBERTY=20
(RFE/RL)<BR><BR></FONT>Broadcasting Board of Governors<BR>Washington, =
D.C.,=20
Monday, February 05, 2007<BR><BR>WASHINGTON - The proposed fiscal year =
2008=20
budget for U.S.<BR>international broadcasting calls for an overall =
increase of=20
3.8% from<BR>the anticipated fiscal year 2007 level that strengthens=20
targeted<BR>programming to provide essential access to news and =
information=20
to<BR>critical audiences.<BR><BR>The budget proposal is also aimed at =
increasing=20
overall audience reach<BR>around the world by utilizing the latest =
technology=20
and strengthening<BR>transmission capability.<BR><BR>Of the Broadcasting =
Board=20
of Governors' (BBG) $668.2 million request,<BR>$142.4 million is =
allocated for=20
programming to the Near East, South, Central<BR>Asia and Eurasia, $116 =
million=20
for Arabic language programming, $67.2<BR>million for East Asia, $45 =
million for=20
Latin America and $13.6 million for<BR>Africa.<BR><BR>The proposal =
includes=20
enhancements the agency believes are pivotal to<BR>promoting freedom and =
democracy and enhancing understanding in key<BR>regions. They=20
include:<BR><BR>[1] Establishing a 10-hour coordinated stream of Voice =
of=20
America (VOA)<BR>and Radio Free Asia (RFA) daily programming to North=20
Korea.<BR>[2] Launching a daily three-hour live Alhurra television =
program=20
produced<BR>and broadcast from the Middle East.<BR>[3] Continuing VOA's =
Somali=20
Service's 30 minute daily radio broadcast<BR>scheduled to launch =
February 12,=20
2007, to the millions of Somali speakers </DIV>
<DIV>in Somalia, Djibouti and the greater Horn of Africa.<BR>[4] =
Improving Radio=20
and TV Mart=ED's reach into Cuba through additional<BR>transmission =
capability and=20
enhancing the production of the programming.<BR>VOA programming to Cuba =
would be=20
increased to 7 days a week.<BR><BR>The budget also fully funds =
initiatives begun=20
in FY 2006 to critical Muslim<BR>audiences. These include the expansion =
of VOA=20
television to Iran to a 12<BR>hour stream, VOA Pashto radio programming =
to the=20
Afghanistan/Pakistan </DIV>
<DIV>border region, television programs to Afghanistan and Pakistan and =
Alhurra=20
</DIV>
<DIV>Europe, the 24/7 service to Arabic speakers in Europe.<BR><BR>To =
fund these=20
initiatives and mandatory cost increases, the request proposes<BR>the =
following=20
savings: elimination of VOA and RFA broadcasts in Cantonese<BR>as well =
as VOA=20
Uzbek.<BR><BR><FONT color=3D#800000>Reductions to the =
following:</FONT><BR><FONT=20
color=3D#800000>[1] Ukrainian broadcasts by both VOA and Radio Free=20
Europe/<BR> Radio Liberty =
(RFE/RL);<BR></FONT>[2]=20
Tibetan broadcasts by VOA and RFA;<BR>[3] VOA Portuguese to Africa; =
and<BR>[4]=20
broadcasts in Romanian, South Slavic and Kazakh by RFE/RL.<BR><BR>Other =
savings=20
will come from reductions in support services.<BR><BR>The FY 2008 =
request also=20
includes several enhancements and reductions<BR>requested in FY 2007. =
These=20
include funds to increase Alhurra's live news<BR>capacity to 24 hours a =
day;=20
expansion of VOA Spanish language programming<BR>to Venezuela; =
additional=20
transmission capabilities for RFE/RL Russian and<BR>RFA Korean =
broadcasts and=20
increased funding for employee training and<BR>award =
programs.<BR><BR>Proposed=20
reductions for FY 2007 included in the FY 2008 request =
include<BR>eliminating=20
VOA broadcasts in Croatian, Greek, Georgian and Thai as well<BR>as =
RFE/RL=20
broadcasts in Macedonian.<BR><BR>The request includes eliminating VOA =
radio=20
broadcasts but continuing<BR>television programming in the following =
languages:=20
Serbian, Albanian,<BR>Bosnian, Macedonian, Hindi and Russian.<BR><BR>The =
proposal also calls for discontinuing 14 hours a day of VOA =
NewsNow<BR>English=20
broadcasts while maintaining VOA's English to Africa and =
Special<BR>English=20
services and continuing to strengthen VOA English on the =
Internet.<BR><BR>The=20
Broadcasting Board of Governors is an independent federal agency=20
which<BR>supervises all U.S. government-supported, non-military=20
international<BR>broadcasting, including The Voice of America (VOA); =
Radio Free=20
Europe/Radio<BR>Liberty (RFE/RL); the Middle East Broadcasting Networks =
(Alhurra=20
TV and<BR>Radio Sawa); Radio Free Asia (RFA); and the Office of Cuba=20
Broadcasting<BR>(Radio and TV Mart=ED).<BR><BR>Through its broadcast =
services, the=20
BBG provides the United States and its<BR>leaders direct and immediate =
access to=20
a worldwide audience of 140 million<BR>people. Current governors are =
Chairman=20
Kenneth Y. Tomlinson, Joaquin F.<BR>Blaya, Blanquita W. Cullum, D. =
Jeffrey=20
Hirschberg, Edward E. Kaufman,<BR>Steven J. Simmons, and Mark McKinnon.=20
Secretary of State Condoleezza<BR>Rice serves as an ex officio=20
member. =
=20
-30-<BR>-----------------------------------------------------------------=
------------------------------<BR><A=20
href=3D"http://www.bbg.gov/_bbg_news.cfm?articleID=3D142&mode=3Dgener=
al">http://www.bbg.gov/_bbg_news.cfm?articleID=3D142&mode=3Dgeneral</=
A><BR>-------------------------------------------------------------------=
-----------------------------<BR>[<A=20
href=3D"#i6">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>7<A=20
name=3Da7>.</A> <STRONG><FONT color=3D#000080 size=3D4> HUNGARY'S =
STILL=20
HOT, BUDAPEST TO=20
BALATON</FONT></STRONG><BR> &nbs=
p; <FONT=20
color=3D#000080> Irish developer also looking =
for investments in=20
Ukraine<BR><BR></FONT>Kevin O'Conner, Irish Times, Ireland, Thursday, =
Feb 08,=20
2007<BR><BR>BUDAPEST is one of the more promising locations for =
investment,=20
according </DIV>
<DIV>to Deirdre O'Regan. With a small portfolio of Irish properties, she =
felt=20
future <BR>returns would not match the past: "I know from my rents, =
which have=20
hardly <BR>moved in three years, that the best is over for the modest =
investor -=20
so I <BR>looked abroad."<BR><BR>Trawling the net and comparing prices =
and=20
yields, she found Budapest <BR>attractive, at least on paper. The =
reality was=20
equally promising. "After two <BR>visits, I bought an office owned by a =
travel=20
agent. He paid two years rent <BR>in advance, so I had that comfort. It =
was, as=20
they say, a win-win deal."<BR><BR>The Hungarian owner got a lump of =
money and=20
the Irish investor got a <BR>property with a yield of about 7 per cent. =
Current=20
Irish returns are about <BR>3-4 per cent on similar properties. She did =
it all=20
on the net, without an <BR>agent - "found the property, corresponded =
with the=20
seller and came out to <BR>meet him".<BR><BR>The tale did not surprise =
Odran=20
Young, owner of a medium-sized estate agency <BR>in Dublin. He came out =
to live=20
permanently in Budapest four years ago, lured <BR>by the promise of =
bargains in=20
a country weaning itself away - at a fast <BR>pace - from a failed =
Communist=20
system. Now he controls the only Irish agency <BR>with a full-time =
complement of=20
staff in the Hungarian capital.<BR><BR>We were in a restaurant in Liszt =
Ferenc,=20
an enclave of boulevards and <BR>restaurants. There is gaiety and =
business and=20
music - it's an aria away from <BR>the fabled Opera House whose baroque=20
splendour has been restored with <BR>dollops of eurodosh, a mere three =
years=20
after Hungary emerged into the <BR>eurofold of favoured =
nations.<BR><BR>Already,=20
he can see the signs of creeping prosperity, a re-run of the =
<BR>experience of=20
the Irish republic. "When I came first, most of the cars were <BR>old =
bangers,=20
Ladas on their last legs.<BR><BR>Now most cars are hardly more than two =
years=20
old. The cafes are full of <BR>well-dressed young people. Then, there =
was only=20
one restaurant on Ferenc </DIV>
<DIV>and four customers - me and three in our group."<BR><BR>A lot =
has=20
changed since then, for both Budapest and Young. They have been =
<BR>agents of=20
each other's change. From his penthouse overlooking the musical =
<BR>square, he=20
counts 16 restaurants and cafe bars.<BR><BR><FONT color=3D#800000>He is =
selling=20
some of those refurbished baroque buildings and uses the <BR>Hungarian =
capital=20
to trawl for developments in Eastern Europe, notably in <BR>neighbouring =
Ukraine.<BR></FONT><BR>Hungary has been good to him, turning him from a=20
medium-sized player in <BR>Irish property to a major wheeler-and-dealer =
of=20
European property. Currently <BR>he has several new developments on the =
go in=20
Budapest, including a block of <BR>"new build" apartments in the =
university=20
district.<BR><BR>Of the 144 apartments, 80 have been sold off-plans. Not =
surprising given <BR>that prices range from 60,000 for one of about 37sq =
m=20
(400sq ft). A Dublin <BR>equivalent, in quality and location, would cost =
upwards=20
of 325,000. His <BR>buyers are mainly Irish, with British and South =
Africans as=20
runners-up in <BR>the investment stakes.<BR><BR>Expanding his Budapest =
office=20
this week to cater for the demand, he is <BR>bullish about Hungary's =
economic=20
prospects. Well, he would be, wouldn't </DIV>
<DIV>he?, given his own investment of time and monies.<BR><BR>But =
external=20
factors support his projections, with rents and wages rising at =
<BR>about 20 per=20
cent in the past 18 months, while land values do not yet <BR>reflect =
that=20
surge.<BR><BR><FONT color=3D#800000>"Property prices are cheaper here =
than in most=20
of the neighbouring <BR>countries - I can sell Budapest residential from =
1,350=20
to 1,800 a sq m (32 <BR>to 167 per sq ft), whereas Sofia (Bulgaria) is =
2,000 a=20
sq m (185 per sq ft), <BR>Ukraine is about 4,000 a sq m (371 per sq ft, =
payable=20
in dollars) and </FONT></DIV>
<DIV><FONT color=3D#800000>Krakow has gone very expensive at 5,500 a sq =
m (510 per=20
sq ft)."<BR></FONT><BR>Still smarting under the rigour of communist =
control,=20
major Hungarian banks <BR>accept existing properties as collateral for =
further=20
loans, "rolling-over" <BR>the values, which was the financial base of =
the=20
historic Irish property <BR>boom. "It took some lobbying, but finally =
the forint=20
dropped," Young <BR>recalls. Some banks will now fund 70 per cent of a=20
prospective purchase.<BR><BR>His forays into commercial property include =
shopping centres, entire office <BR>blocks, former government =
departments -=20
bought by syndicates of investors <BR>whom he describes as " typically =
two or=20
three Irish blokes, aged mid-30s to <BR>mid-40s, punting with some spare =
cash".=20
(His definition of "spare cash", is <BR>elastic, given one buy of a =
shopping=20
mall for 8 million).<BR><BR>THINKING big also drives the plans of Marty =
Carr,=20
whose golf services <BR>company is a significant partner in Zala =
Springs, about=20
two hours drive from <BR>Budapest.<BR><BR>On a greenfield site in the =
wine=20
region of Balaton, the 18-hole course is <BR>trumpeted as of =
"championship=20
quality" with 7,200 yards of drives off the <BR>tees, and around 468 =
acres of=20
playing.<BR><BR>Why Hungary for golf? "Because it was there!" is Carr's =
succinct=20
answer, <BR>before supplying some figures. "Hungary has only seven golf =
courses,=20
about <BR>one course for every 1.5 million of population; the comparable =
figure=20
for <BR>Ireland is a course for every 12,000 people.<BR><BR>Scion of the =
golfing=20
family - "I have the name but not the game" - Marty's <BR>company, Carr =
Golf=20
Services, manages six courses at home and partners <BR>investors to =
develop=20
major courses overseas.<BR><BR>"Golf, wine and baths" is the working =
motto for a=20
spa market that is <BR>currently fashionable. Zala Springs exploits the =
very=20
Hungarian capacity for <BR>enjoying bathing in thermal waters (sometimes =
outdoor=20
in winter!) as well as <BR>the region's vineyards.<BR><BR>Using golf as =
lure,=20
investing partners have funded a new 397-unit resort. <BR>Family =
apartments and=20
townhouses range from about 60-215sq m (645-2,217</DIV>
<DIV>sq ft) costing from 128,000 to around 350,000 for detached golf =
villas on=20
the <BR>fringes of the course.<BR><BR>All are being sold off plans, with =
Carr=20
claiming a 10 per cent uplift in <BR>price for buyers of the first =
phase.=20
Housing completion is scheduled for end <BR>of 2007, with the course =
playable in=20
spring of 2008.<BR><BR>Lisney is holding a property exhibition on Zala =
Springs=20
in the Westbury <BR>Hotel, Dublin, this Friday and Saturday, February =
9th and=20
10th.<BR><FONT=20
face=3DArial>------------------------------------------------------------=
------------------------------------</FONT><BR><A=20
href=3D"http://www.youngsbudapest.ie">www.youngsbudapest.ie</A>; <A=20
href=3D"http://www.casaro-hungary.com">www.casaro-hungary.com</A><BR><A=20
href=3D"http://www.zalasprings.com/www.lisney.com">www.zalasprings.com/ww=
w.lisney.com</A></DIV>
<DIV>--------------------------------------------------------------------=
----------------------------</DIV>
<DIV>[<A href=3D"#i7">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR> <FONT=20
color=3D#000080> </FONT><FONT color=3D#800000> <FONT=20
size=3D4>NOTE: Send in a letter-to-the-editor today. Let us hear =
from=20
you</FONT><STRONG><FONT=20
size=3D4>.<BR></FONT></STRONG></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>8<A=20
name=3Da8>.</A> <FONT color=3D#000080>UKRAINE MOP MANUFACTURER =
LOOKING FOR=20
PARTNERS<BR></FONT><BR>ISSA News, The Experts on Cleaning and=20
Maintenance<BR>Lincolnwood, Illinois, Wednesday, February 7,=20
2007<BR><BR>LINCOLNWOOD, Illinois - <FONT color=3D#800000>ISSA member =
AVS MOP, a=20
mop and related<BR>products manufacturer in Ukraine, has begun exporting =
its=20
products to<BR>countries outside Ukraine and is looking for European =
partners,=20
according<BR>to AVS MOP's Andrey Sukhoruchkin.<BR></FONT><BR>AVS MOP =
joined ISSA=20
in 2006. Later that year, the company attended an<BR>exhibition in =
Moscow, where=20
it secured several contracts and determined it<BR>was time to expand =
beyond=20
Ukraine.<BR><BR>It began exporting its goods in January of this year. =
Currently,=20
the company<BR>is looking to develop partnerships in Europe, where it =
buys its=20
raw<BR>materials.<BR><BR>For more information, contact Andrey =
Sukhoruchkin,=20
Kiev, Ukraine<BR>+380 50-462-62-78; e-mail, <A=20
href=3D"mailto:clin2006@ukr.net">clin2006@ukr.net</A>. &=
nbsp; =20
-30-<BR>-----------------------------------------------------------------=
----------------------------<BR><A=20
href=3D"http://www.issa.com/news/news_detail.jsp?typeId=3D101&newsid=3D=
1425&page=3D1&startPage=3D1">http://www.issa.com/news/news_detail=
.jsp?typeId=3D101&newsid=3D1425&page=3D1&startPage=3D1</A><BR=
></DIV>
<DIV>--------------------------------------------------------------------=
------------------------------------------------<BR>[<A=20
href=3D"#i8">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]</DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>9<A=20
name=3Da9>.</A> <FONT color=3D#000080 =
size=3D4><STRONG>UKRAINE: 2006 - A=20
YEAR OF ECONOMIC SUCCESS?<BR></STRONG></FONT><BR>COMMENTARY AND =
ANALYSIS: By=20
Valentin Zelenyuk<BR>Kyiv Post, Kyiv, Ukraine, Thursday, Feb 08 =
2007<BR><BR>A=20
year ago, virtually everyone gave a very pessimistic forecast for =
Ukraine's=20
<BR>economic prospects in 2006-especially due to the drastic increase in =
the=20
<BR>import price of natural gas.<BR><BR>Nevertheless, Ukraine gave =
another=20
surprise by finishing this difficult year <BR>with one of the highest =
rates of=20
economic growth in the world-about 7 <BR>percent growth in real GDP and =
about 20=20
percent GDP growth when valued in <BR>USD. One might get an =
impression=20
that Ukraine is doing very well. This, <BR>however, is an=20
illusion.<BR><BR>Indeed, even now, note that Ukraine's real GDP in 2006 =
is still=20
under 65 <BR>percent of GDP in 1990.<BR><BR>Moreover, according to the =
World=20
Bank 2006 report, the gross national income <BR>per capita in Ukraine is =
only=20
$1,520 - this is less than in Morocco <BR>($1,730), Guatemala ($2,400), =
Albania=20
($2,580), Algeria ($2,730), Namibia <BR>($2,990) and in many other =
developing=20
countries!<BR><BR><FONT color=3D#800000>Such a dismally poor performance =
can be=20
hardly believed-given the fact that <BR>the Ukrainian population has a=20
relatively high level of education enabling <BR>them to produce big =
airplanes,=20
satellites and space rockets - a potential <BR>that a majority of =
countries in=20
the world lack.<BR><BR>What are the main reasons for such a shameful =
economic=20
performance? To </FONT></DIV>
<DIV><FONT color=3D#800000>give a brief answer, the main problem is =
rooted in the=20
lack of reforms that </FONT></DIV>
<DIV><FONT color=3D#800000>could liberalize the economy in=20
Ukraine.<BR><BR></FONT>Indeed, since obtaining independence in 1991 and =
up until=20
now, Ukraine has <BR>been lagging behind other transitional and =
developing=20
countries in terms of <BR>implimentation of economic reforms, and has =
been=20
characterized as a <BR>repressed and mostly unfree economy (e.g., see =
indexes of=20
economic </DIV>
<DIV>freedom by the Cato Institute and by the Heritage =
Foundation).<BR><BR>So,=20
lagging behind in reforms has made Ukraine lag behind in terms of </DIV>
<DIV>wealth per capita as well.<BR><BR>The main reform that is urgently =
needed=20
now is the tax reform. It is worth <BR>noting that up until 1998, the =
tax burden=20
in Ukraine was one of the highest <BR>among all countries in the=20
world.<BR><BR>Some positive steps have been taken since then - through =
the=20
introduction of <BR>a simple and moderate tax for private entrepreneurs =
at the=20
end of 1998 and a <BR>substantial reduction of personal income tax to a =
flat=20
rate of 13 percent in <BR>2004.<BR><BR>These two steps helped Ukraine =
move away=20
from its deep economic fall and <BR>recession since 1991 to decent =
economic=20
growth since 2000 and an economic <BR>boom in 2004.<BR><BR>Ukraine's =
corporate=20
taxes, however, remain excessively burdensome in <BR>Ukraine, making it =
less=20
attractive than most countries in the world. Indeed, <BR>according to =
various=20
cross-country world ratings, the rank of Ukraine on the <BR>ease of tax =
burden=20
is astonishingly bad.<BR><BR>For example, according to a very =
comprehensive=20
World Bank survey 'Doing <BR>Business - 2007,' based on 10 major =
criteria=20
crucial for a business, Ukraine <BR>was ranked 174 out of 175 countries! =
In the=20
2006 version of this report, <BR>Ukraine was ranked 151 out of 155 - =
only better=20
than Belarus and three <BR>African countries, while now only Belarus is =
behind=20
Ukraine.<BR><BR>The most recent estimates of the World Bank survey =
suggest that=20
an average <BR>firm in Ukraine has to pay about 60.3 percent of =
their=20
gross profit in <BR>various taxes. By all standards, the current =
taxation burden=20
on businesses <BR>in Ukraine is prohibitively high for a country that=20
desperately needs <BR>economic recovery.<BR><BR>What should be =
clear for=20
policymakers is that countries that had a good <BR>ranking on taxation =
(and=20
other important criteria of the business <BR>environment) were =
performing much=20
better than those who had a poor </DIV>
<DIV>ranking.<BR><BR>More specifically, every country that achieved an =
economic=20
miracle (e.g., <BR>Hong Kong, Singapore, South Korea, Taiwan, Ireland, =
Estonia,=20
etc.) had low <BR>taxes and liberalized markets. On the other hand, =
those=20
countries that had <BR>excessive taxation and excessive government =
bureaucracy=20
(Armenia, Moldova, <BR>North Korea, Uzbekistan, Ukraine, etc.) had =
economic=20
disasters.<BR><BR>Many people, certainly including myself, hoped that =
after the=20
Orange <BR>Revolution the necessary economic reforms in Ukraine would =
follow=20
<BR>immediately. About two years have past but, regrettably, not much =
has=20
<BR>changed since then, mainly because the politicians in power were =
busy=20
<BR>re-electing themselves.<BR><BR>Now, with a pragmatic and =
business-oriented=20
government, there is good hope <BR>that a successful tax reform will =
finally be=20
developed and implemented <BR>shortly and that the parliament will be =
supportive=20
this time.<BR><BR>So, what exactly needs to be done? First and most =
important of=20
all, the <BR>profit tax for all firms must be reduced substantially. =
Indeed, it=20
is the <BR>excessive tax bureaucracy that creates most of the problems =
for the=20
<BR>Ukrainian business environment.<BR><BR>For example, according to the =
mentioned survey of the World Bank, an average <BR>Ukrainian firm must =
make=20
about 98 payments, spending about 2,185 hours to <BR>comply with tax=20
requirements - which is much more than in most countries in <BR>the=20
world.<BR><BR>Such bureaucracy substantially reduces the attractiveness =
of=20
Ukraine for new <BR>foreign investors, slows down existing businesses =
and pushes=20
many businesses <BR>away to other countries or into the shadow=20
economy.<BR><BR>(A noteworthy factor, by various estimates, is that the =
shadow=20
economy in <BR>Ukraine is about 50 percent of its official GDP and a big =
portion=20
of it is <BR>due to a very excessive tax burden.)<BR><BR>Overall, if an =
adequate=20
tax reform is implemented liberalizing the entire <BR>country into one =
free=20
economic zone, then the resulting economic growth </DIV>
<DIV>can be enormous, generated by various sources.<BR><BR>The increase =
in=20
growth would be driven by an increase in the operations of <BR>existing =
firms=20
and due to the entry of new firms, especially foreign firms <BR>with =
superior=20
technologies.<BR><BR>Moreover, a substantial part of the shadow economy =
can come=20
to the light. </DIV>
<DIV>As a result, economic growth in the official real GDP in Ukraine =
can easily=20
<BR>reach 10-15 percent annually for the next three to five years, with =
a decent=20
<BR>economic performance afterward.<BR><BR>If such reforms are =
implemented, they=20
could create the true economic </DIV>
<DIV>miracle for Ukraine that we have been awaiting for the last 15 =
years. =20
-30-<BR>-----------------------------------------------------------------=
-----------------------------<BR>Valentin=20
Zelenyuk is a Senior Economist at Kyiv Economics Institute (KEI), =
<BR>assistant=20
professor of EERC at Kyiv-Mohyla Academy, and the Director of =
<BR>Ukrainian=20
Productivity and Efficiency Group (UPEG). the author thanks <BR>Natalya=20
Dushkevych for valuable comments. The views expressed in this =
<BR>article are=20
those of the author and do not represent the views of the <BR>above =
mentioned=20
organizations or people. </DIV>
<DIV>--------------------------------------------------------------------=
---------------------------</DIV>
<DIV>LINK: <A=20
href=3D"http://www.kyivpost.com/opinion/oped/26044/">http://www.kyivpost.=
com/opinion/oped/26044/</A></DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>[<A=20
href=3D"#i9">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>10<A=20
name=3Da10>.</A> <FONT color=3D#000080 size=3D4><STRONG>POLISH =
MINISTER URGES=20
U.S. INTEREST IN=20
PLANNED<BR>| &=
nbsp; &n=
bsp;=20
UKRAINE-POLAND OIL PIPELINE<BR></STRONG></FONT><BR>PAP news agency, =
Warsaw,=20
Poland, Tuesday, 6 Feb 07<BR><BR>WARSAW - The government will =
support the=20
activities of Polish companies <BR>aimed at securing their own crude oil =
Odessa-Brody-Plock pipeline project," Naimski said.<BR></FONT><BR>The =
ministry=20
of economy wants the cabinet to transfer supervision over oil <BR>and =
gas=20
transit companies to the economy ministry, from the ministry of =
<BR>state=20
treasury, Wozniak also said.<BR><BR>"The minister of economy, not the =
treasury=20
minister, is solely responsible <BR>for the country's energy security," =
he=20
declared. In order to ensure such <BR>security the minister of economy =
must have=20
necessary tools, he=20
added.<BR>---------------------------------------------------------------=
--------------------------------<BR>[<A=20
href=3D"#i10">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV>11<A name=3Da11>.</A> <FONT color=3D#000080>CASE-NEW =
HOLLAND OFFERS=20
STATE AGRICULTURAL<BR> LEASING COMPANY PROGRAM TO ORGANIZE =
PRODUCTION=20
<BR> =
OF=20
AGRICULTURAL MACHINERY IN UKRAINE <BR></FONT><BR>By Dmytro Kuzmin, =
Ukrainian=20
News Agency<BR>Kyiv, Ukraine, Friday, February 2, 2007<BR><BR>KYIV - =
<FONT=20
color=3D#800000>One of the world's largest producers of agricultural =
machinery,=20
<BR>the Case-New Holland company (CNH, the Netherlands) suggests the=20
<BR>Ukrahrolizynh national joint-stock leasing company to organize =
production=20
<BR>of the New Holland's agricultural machinery in Ukraine. The press =
service=20
<BR>of Ukrahrolizynh announced this in a statement.<BR></FONT><BR>As to =
the=20
press service, Ukrahrolizynh is negotiating the world's major =
<BR>producers of=20
agricultural machinery with an aim of developing financial <BR>programs =
for=20
procurement of machinery, that is not produced in Ukraine.<BR><BR>"Today =
the=20
most attractive and beneficial proposition, as to price and <BR>other =
criteria,=20
is that of CNH," the statement reads.<BR><BR><FONT =
color=3D#800000>According to=20
the press service, CNH proposes three stages of <BR>cooperation:<BR>[1] =
The=20
first one - shipping machinery to Ukraine for demand </FONT></DIV>
<DIV><FONT color=3D#800000> analysis, =
<BR>[2] the=20
second - organization of joint production and <BR>[3] the third - =
localization=20
of products at up to 50% of Ukrainian <BR> =
components.=20
<BR></FONT><BR>The press services reports no details of the Dutch side=20
suggestion.<BR>Case-New Holland is an international corporation, which =
produces=20
tractors, <BR>harvesters, excavators, loaders and other agricultural and =
construction <BR>machinery. Italian Fiat concern owns 91% of shares in=20
CNH.<BR><BR>As Ukrainian News earlier reported, the Cabinet of Ministers =
founded=20
the <BR>Ukrahrolizynh company in May 1999 to lease agricultural =
equipment to=20
<BR>agricultural enterprises instead of the State Leasing Fund. =
Ukrahrolizynh=20
<BR>ended 2004 with a net profit of UAH 0.2 million from net revenues of =
<BR>UAH=20
37=20
million.  =
; =
=20
-30-</DIV>
<DIV>--------------------------------------------------------------------=
---------------------------</DIV>
<DIV>NOTE: Case New Holland is a member of the Ukraine-U.S. =
Business=20
</DIV>
<DIV>Council in Washington, D.C.=20
<BR>---------------------------------------------------------------------=
--------------------------<BR>[<A=20
href=3D"#i11">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV><FONT color=3D#800000 size=3D4><STRONG>If you are receiving more =
than one copy=20
of the AUR please contact us. </STRONG></FONT></DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>12<A=20
name=3Da12>.</A> <FONT color=3D#000080>FORMATION OF COUNCIL OF =
INVESTORS (COI)=20
POSTPONED<BR> =
&=
nbsp; =20
List of members has not been approved<BR></FONT><BR>By Natalya =
Nepryakhina, The=20
Kommersant-Ukraine<BR>Kyiv, Ukraine, Friday, February 02, =
2007<BR><BR>KYIV - The=20
Kommersant-Ukraine laid its hands on a draft government<BR>resolution to =
set up=20
the Council of Investors, COI, under the cabinet of<BR>ministers and to =
be=20
headed by the premier [Prime Minister Viktor<BR>Yanukovych]. The draft =
had=20
already been approved by the government<BR>committee on economic=20
policy.<BR><BR>But the final go-ahead for COI couldn't be given because =
the list=20
of members<BR>and criteria for their selection do not exist. Experts =
fear that=20
COI will be<BR>made up mainly of businessmen close to the present=20
government.<BR><BR>In line with the government draft , a copy of which =
The K-U=20
has, the cabinet<BR>is out to set up another consulting and advisory =
body, COI.=20
The decision to<BR>set it up was approved on Monday, Jan. 29 by the =
committee on=20
economic<BR>policy.<BR><BR>For the record, late 2006 the cabinet =
disbanded the=20
Council on Foreign<BR>Economic Activities and the Council of =
Entrepreneurs,=20
creating the Council<BR>of National Associations of Producers and the =
Council=20
for the Development<BR>of Regions (See The K-U issues for 12.6.2006 and=20
12.22.2006).<BR><BR>As follows from the draft on COI, the new body will =
be=20
headed by Premier V.<BR>Yanukovych. He will approve the list of COI =
members and=20
the secretariat<BR>staff. COI secretariat is to be headed by the economy =
investment sector, work out mechanisms of partnership between<BR>the =
state and=20
entrepreneurs and propose investment projects for<BR>implementation in =
the=20
economy priority sectors.<BR> <FONT color=3D#800000=20
size=3D4><STRONG>LIST OF COI MEMBERS HAS NOT BEEN=20
APPROVED</STRONG></FONT><BR>However, as one of the most contentious =
issues, the=20
list of COI members,<BR>has not been approved, the government =
could not=20
pass the resolution to set<BR>up COI at its Feb. 1 =
session.<BR><BR>Government=20
officials who had worked out the draft, could not clarify to The<BR>K-U =
the=20
criteria for selecting COI members who can be qualified=20
as<BR>investors.<BR><FONT color=3D#800000 size=3D4><STRONG>ORIGINAL LIST =
OF 15-20=20
INVESTORS AND ORGANIZATIONS<BR></STRONG></FONT>The president of the =
State Agency=20
for Investments and Innovations (SAII)<BR>Viktor Ivchenko told The K-U =
that the=20
original list made up of 15-20<BR>Ukrainian and Russian investors, =
including, by=20
the way, the co-owner of the<BR>Industrial Union of Donbas, ISD, Serhy =
Taruta,=20
the owner of Interpipe Viktor<BR>Pinchuk and representatives of the =
European=20
Business Association and the US<BR>Chamber of Trade and Industry, was =
not=20
approved by the government.<BR><FONT color=3D#800000 =
size=3D4><STRONG>UKRAINIAN=20
BUSINESS, FOREIGN INVESTORS & EXPERTS</STRONG></FONT><BR>Our source =
in the=20
economy ministry has specified that the list will =
include<BR>representatives of=20
Ukrainian business, foreign investors, and experts.<BR>Notably, the =
Consultative=20
Council on Foreign Investments created in 2005<BR>under the president of =
Ukraine=20
was made up only of foreign investors.<BR><BR>"We are for a two-way =
street in=20
the relationship of business and government<BR>in order to solve the =
existing=20
problems," the source told The K-U.<BR>Meanwhile, another source in the=20
Ukrainian Center for Promoting Foreign<BR>Investments forecast that COI =
may=20
become an alternative to the presidential<BR>council.<BR><BR>According =
to=20
experts, an overcrowded list of COI members will trigger off =
a<BR>tug-of-war and=20
will not facilitate quick decisions.<BR><BR>"As evidenced by past =
experience,=20
the number of council members should be<BR>limited," our source in SAII =
says.=20
The more the number of members, the more<BR>the number of contradicting =
views=20
which cannot be moderated, he adds.<BR><BR>Analysts warn that the =
businessmen=20
close to the government will predominate<BR>on COI.<BR><BR>Thus, Head of =
the=20
Association of Jewelers of Ukraine Dmytro Vydolob says<BR>these =
government=20
insiders will only lobby for their interests: "I don't see<BR>that the=20
government is interested to promote competitiveness, and =
most<BR>probably, COI=20
will be made up of Ukrainian businessmen who will resolve<BR>their own =
problems=20
with cabinet=20
assistance." &=
nbsp; =20
-30-<BR>-----------------------------------------------------------------=
---------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.kommersant.ua/search-results.html">http://www.kommersa=
nt.ua/search-results.html</A><BR>----------------------------------------=
----------------------------------------------------------<BR>FOOTNOTE:&n=
bsp;=20
Article translated into English by Volodymyr=20
Hrytsutenko.<BR>---------------------------------------------------------=
--------------------------------------<BR>[<A=20
href=3D"#i12">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR> =20
<FONT color=3D#800000 size=3D4><STRONG> Send in =
a=20
letter-to-the-editor today. Let us hear from=20
you.<BR></STRONG></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>13<A=20
name=3Da13>.</A> <FONT color=3D#000080=20
size=3D4><STRONG>YANUKOVYCH TO BECOME HIS OWN=20
ADVISOR<BR></STRONG></FONT> <FONT =
color=3D#000080>Cabinet=20
of Ministers created Council of Investors (COI) Advisory =
Body</FONT><BR><BR>By=20
Antonina Bazhan, The Ekonomichna Pravda internet newsletter<BR>Business =
and=20
economy by Ukrayinska Pravda, </DIV>
<DIV>Kyiv, Ukraine, Thursday, Feb. 1, 2007<BR><BR>Premier Yanukovych =
continues=20
to build the pyramid of his power. This time,<BR>he set up an office =
that makes=20
him chieftain of Ukrainian investors. On Jan.<BR>24, 2007, the cabinet =
created=20
an advisory body, the Council of Investors<BR>(COI) affiliated with the =
Cabinet=20
of Ministers.<BR><BR>In all probability, COI is to become a close-knit =
team of=20
moneybags loyal to<BR>the government. The council will be headed - guess =
by=20
whom? - by V.<BR>Yanukovych.<BR><FONT color=3D#800000=20
size=3D4><STRONG> &n=
bsp; &nb=
sp; =20
REINVENTING THE WHEEL<BR></STRONG></FONT>According to The Ekonomichna =
pravda,=20
the Yanukovych government, acting<BR>quickly and without any notice, =
liquidated=20
the Council of Entrepreneurs<BR>(COE) set up by Pres Kuchma back in the =
90s=20
and.<BR><BR>To quote Economy Minister Volodymyr Makhuha, the reason =
behind this=20
was<BR>the Yanukovych government desire to raise, as he put it, the=20
low<BR>representative level of COE.<BR><BR>Accusations of the low =
representative=20
level of COE were definitely made<BR>against Yulia Tymoshenko who, when =
premier,=20
enrolled mainly small and<BR>medium-sized businessmen to sit on COE, =
unlike=20
former Pres. Kuchma who<BR>favored tycoons.<BR><BR>To judge by V. =
Makuha's=20
rather confused explanations, the cabinet questioned<BR>COE =
effectiveness,=20
saying its members, instead of representing the opinion<BR>of the =
business=20
community, were involved in lobbying for someone=20
else's<BR>interests.<BR><BR>Besides, Makuha explained, the cabinet had =
already=20
created a new<BR>representative body for entrepreneurs that had to =
replace COE.=20
Yet, at the<BR>time the minister could not recall its name. It turned =
out later=20
that Makuha<BR>meant COI.<BR><BR>Under the circumstances, it was unclear =
then=20
what the government motives for<BR>scrapping the 10-year old COE had =
been. To=20
have his way, it was sufficient<BR>for the premier either to enroll new =
members=20
who would suit him or to<BR>restore the format COE had in Kuchma days, a =
club=20
for Ukrainian moneybags<BR>like Rinat Akhmetov and Viktor=20
Pinchuk.<BR><BR>Anyway, the interests of the Party of Regions and its =
business=20
partners<BR>(major donors in the ruling coalition's war chest) could =
have been=20
insured<BR>by appointing one of the insiders to head COE who would then =
form=20
the<BR>docile council needed by the=20
coalition.<BR>  =
; =
=
council's goal is to represent the interests of various =
business<BR>associations=20
of which COI is to be made up, jointly draw up proposals =
and<BR>recommendations=20
for the government. Most likely, Viktor Yanukovych will<BR>now advise =
himself on=20
issues vital for businesses.<BR><BR>Moreover, in line with the COI =
statute,=20
information support for its<BR>activities will be provided also by =
officials, as=20
- guess who? - the<BR>minister of the economy is to be in =
charge.<BR><BR>It=20
seems the government will keep the Council of Investors on a very=20
short<BR>leash, both when appointing its members and when making =
decisions=20
or<BR>issuing press releases to cover its activities. Therefore, the=20
roles<BR>investors will play in the new council are very dim, more like =
those of=20
</DIV>
<DIV>supernumeraries in a theater.<BR><BR>However, all these arguments =
can be=20
logical only in a democracy. Given the<BR>Ukrainian realities, a council =
of=20
businessmen with its declared opaque and<BR>docile format may well be =
turned=20
into a cash cow for the incumbent head of<BR>the cabinet. This club of =
business=20
insiders may well become a base for the<BR>premier's economic=20
self-sufficiency.<BR><BR>Much will depend on who Viktor Yanukovych could =
enroll=20
to sit on COI and<BR>what kind of quid pro quos he could offer to his =
potential=20
sponsors.=20
-30-<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D<BR>FOOTNOTE: =20
Article translated into English by Volodymyr=20
Hrytsutenko.<BR>---------------------------------------------------------=
--------------------------------------<BR>[<A=20
href=3D"#i13">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>14<A=20
name=3Da14>.</A> <FO=
NT=20
color=3D#000080 size=3D4><STRONG>A FAIR LAND MARKET OR A LAND=20
GRAB?<BR></STRONG></FONT><BR>ANALYSIS & COMMENTARY: Gary Reusche =
&=20
Stephan Vitvitsky<BR>Kyiv Post Kyiv, Ukraine, Thursday, February 08=20
2007<BR><BR>The question of a land market in Ukraine has yet to make the =
transition from<BR>the Soviet past. Under the Soviet Union, private =
property was=20
illegal.<BR><BR>After 15 years of independence, land reform in Ukraine =
is still=20
unfulfilled.<BR>At stake is perhaps the best agricultural land in =
Europe, and=20
its current<BR>owners are the poor and mostly neglected rural=20
inhabitants.<BR><BR>The roots of the current situation are in the Soviet =
era and=20
are directly<BR>related to the Holodomor, or Great Famine. During =
the=20
reorganization of<BR>rural Ukraine by the Soviets, residents were =
uprooted, and=20
during the famine<BR>their population was decimated. In their place were =
established collective<BR>farms.<BR><BR>These collective farms are now =
history,=20
with the exception that the<BR>inheritors of the collective farms have =
ownership=20
of the land, but not the<BR>right to sell it. Roughly 7 million rural =
Ukrainians=20
have, or will soon<BR>have, land acts for approximately 25 million =
hectares of=20
the best farmland<BR>in Ukraine (and in Europe).<BR><BR>How to move from =
the=20
current situation to the future is the crux of the<BR>problem. Will =
there be=20
opportunities for the current residents to develop<BR>farms and small =
businesses=20
and create a decent life, or will vested<BR>interests and elites grab =
the land?=20
This drama will be played out in the<BR>upcoming years.<BR><BR>What =
seems to be=20
lacking is a vision for the future that gives realistic<BR>hope for the =
current=20
landowners to consolidate and utilize this land in ways<BR>that are =
viable in a=20
market economy.<BR><BR>In most transition economies, the creation of a =
land=20
market and clear<BR>property rights is essential to successful market =
economy=20
transformation.<BR><BR>Ideally, land that is bought and sold within a =
market=20
should change hands to<BR>those who seek to enhance productivity, =
efficiency,=20
and growth.<BR><BR>As discussed by agricultural expert Andriy Yarmark in =
a=20
recent interview in<BR>the Kyiv Post, a well-functioning land market =
also=20
encourages investment and<BR>increases revenue through land sales, which =
helps=20
create jobs and enhance<BR>rural livelihood.<BR><BR>The Ukrainian =
parliament's=20
recent prolongation of the land moratorium shows<BR>again the =
government's=20
reluctance to complete its market economy transition<BR>(though only the =
most=20
naive will think that this situation is not=20
benefiting<BR>someone).<BR><BR>Although Ukraine needs an open land =
market now,=20
it must be implemented in a<BR>context of programs designed to assist =
the rural=20
population to make the<BR>transition, and encourage small business=20
development.<BR><BR>If a small number of rich individuals or banks =
accumulate=20
large tracts of<BR>land by cheaply buying land from the rural poor, the =
outcome=20
would be at<BR>best an industrialized agriculture or at worst =
asset-stripping=20
and<BR>environmental degradation.<BR><BR>Such a land-owning oligarchy =
would reap=20
millions of dollars and gain huge<BR>political influence, and rural =
residents=20
would speed up their migration to<BR>cities.<BR><BR>If Ukraine is to =
create a=20
land market, the government must make sure that it<BR>is done legally,=20
transparently, and most importantly, for the good of the<BR>more than 15 =
million=20
people living in rural areas.<BR><BR>Extreme poverty rates are highest =
in rural=20
areas, with roughly one-third<BR>living under a dollar a day. Simply =
creating a=20
land market without certain<BR>conditions in place will not necessarily =
improve=20
the lives of Ukraine's<BR>poorest residents.<BR><BR>First, the =
government=20
initially should regulate land transactions in order<BR>to ensure a fair =
and=20
socially equitable distribution of land. Quotas may be<BR>placed that =
limit how=20
much land an individual may purchase, which would<BR>prevent oligarchs =
from=20
purchasing large tracts of land at low prices.<BR><BR>Incentives should =
be given=20
to the middle class and even to poor rural<BR>dwellers, such as tax =
breaks or=20
subsidies, to encourage them to purchase<BR>land or cultivate the land =
they=20
already own.<BR><BR>Opponents of this policy would scream that =
government=20
regulation would<BR>counter market reforms and lead to poor=20
results.<BR><BR>Nevertheless, at least in initial years, the government =
must=20
play a role in<BR>regulating the land market to ensure that land is =
distributed=20
fairly. Only<BR>when a land market has demonstrated functionality =
and=20
stability should the<BR>government step away.<BR><BR>Secondly, and of =
equal=20
importance, is that credit must be available to new<BR>landowners. For =
what is a=20
new landowner, especially if he is a former<BR>household plot farmer, =
going to=20
do with 20-30 hectares if he has no access<BR>to credit?<BR><BR>Without =
it, many=20
would be forced to sell - probably to a wealthy individual<BR>who can =
invest his=20
own money, thereby increasing the likelihood that a land<BR>oligarchy=20
develop.<BR><BR>Rural areas are currently vastly underserved by =
Ukraine's credit=20
market.<BR>Although many major banks, such as PrivatBank, Raiffeisen =
Bank Aval,=20
and<BR>ProCredit Bank, now offer small and micro-loan products, they=20
primarily<BR>focus on urban areas. Agricultural loan products also are =
limited=20
in their scope.<BR><BR>According to statistics from the Ukraine =
Micro-Lending=20
Program, an<BR>EBRD-sponsored program that helps banks create micro-loan =
cooperative system, known in Ukraine<BR>as credit unions and cooperative =
encouraging signs for potential landowners. Therefore, banks,<BR>NGOs, =
and=20
credit unions should be encouraged to extend credit in small =
towns<BR>and rural=20
areas, helping fill a major void in Ukraine's credit =
market.<BR><BR>Lastly,=20
there must be strong institutions and courts in place in order =
for<BR>land=20
transactions to be processed efficiently, ensuring that laws =
are<BR>upheld, and=20
disputes settled. A land market without institutions would lead<BR>to=20
chaos.<BR><BR>Transactions would be made very slowly, disputes would be =
settled=20
through<BR>bribes and threats, and individuals would easily disobey the =
law.=20
This state<BR>would be devastating for rural areas and would further =
encourage=20
corruption,<BR>already a major problem in Ukraine.<BR><BR>Unfortunately, =
there=20
is no quick and easy solution that can solve the<BR>current land =
dilemma. It is=20
high time that the government, along with NGOs<BR>and development =
agencies, took=20
steps to ensure that institutions and courts<BR>are functional and =
transparent;=20
as well as ready to handle the huge workload<BR>once a land market is=20
established. &=
nbsp; =20
-30-<BR>-----------------------------------------------------------------=
----------------------------<BR>Gary=20
Reusche is rural development expert and former team leader of an<BR>EU =
project=20
in Ukraine that supported SME development in rural areas.<BR>Stephan =
Vitvitsky=20
is here as a Fulbright Research Fellow 2006-2007,<BR>researching rural =
economic=20
development.<BR>---------------------------------------------------------=
-------------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.kyivpost.com/opinion/oped/26043/">http://www.kyivpost.=
com/opinion/oped/26043/</A><BR>------------------------------------------=
-----------------------------------------------------<BR>[<A=20
href=3D"#i14">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>15<A=20
name=3Da15>.</A> <FONT color=3D#000080 size=3D4><STRONG>UKRAINE: THE =
ECONOMIC EFFECTS=20
OF CORRUPTION<BR><BR></STRONG></FONT>ANALYSIS & COMMENTARY: By =
Oleksandr=20
Shepotylo<BR>The Ukrainian Observer magazine #228<BR>The Willard Group, =
Kyiv,=20
Ukraine, February 2007<BR><BR>Recently, a friend of mine was crossing =
the=20
Russian-Ukrainian border by<BR>train. The customs officer knocked at the =
door of=20
his carriage compartment<BR>and asked for his documents. After careful=20
examination, the officer said<BR>that the registration had expired and =
my friend=20
was not allowed to cross the<BR>border.<BR><BR>That would be the end of =
story if=20
it were the US-Canadian border because<BR>my friend would be forced to =
exit the=20
train. The end of this story had,<BR>however, a happy ending.<BR><BR>The =
officer=20
was waiting and looking at my friend as if he wanted to hear<BR>some=20
explanations hinting that something could be done to resolve =
the<BR>problem.=20
After short negotiations, the officer asked my friend to=20
follow<BR>him.<BR><BR>Shortly, the friend came back with the stamp in =
the=20
passport that allowed<BR>him to cross the border. This example =
illustrates a=20
more general point that<BR>the rules are not strictly enforced in a =
country with=20
a high level of<BR>corruption such as Ukraine.<BR><BR>To achieve our =
goals we=20
are ready to break the rules and bribe government<BR>officials who are =
supposed=20
to protect the law. Officials, in their turn, expect </DIV>
<DIV>that we behave that way and force us to give bribes.<BR><BR><FONT=20
color=3D#800000>The vicious circle is very hard to break because it has =
become=20
ingrained in<BR>the Ukrainian culture and governs people's cultural code =
of=20
behavior.<BR><BR>The common knowledge is that everybody does it, so why =
should=20
you be any<BR>different? Taking bribes is part of the routine work of =
policemen,=20
customs<BR>officials and municipal workers.<BR><BR></FONT>Adjusting =
numbers for=20
the cost of living, Ukraine came in the second<BR>place - not far behind =
Ghana -=20
in annual bribes paid by households </DIV>
<DIV>according to the results of a public opinion survey of =
about<BR>55,000=20
people in 69=20
countries. <BR>  =
; =
<FONT=20
color=3D#800000 size=3D4><STRONG> HOW COSTLY IS=20
CORRUPTION<BR></STRONG></FONT>How costly is corruption for the welfare =
of a=20
country? Oddly enough, the<BR>mere fact of bribery has no direct impact =
on a=20
country's gross domestic<BR>product (GDP).<BR><BR>However socially =
costly, the=20
bribe is a transfer of money from one<BR>individual to another that has =
an=20
impact on distribution of income but<BR>leaves the level of GDP =
unchanged (in=20
fact, if it was registered, it would<BR>even increase GDP).<BR><BR>Does =
that=20
mean that corruption has no impact on economic growth?<BR>Of course, the =
answer=20
is negative.<BR><BR>Paolo Mauro - one of the first economists who =
empirically=20
studied the<BR>consequences of corruption - demonstrated that corruption =
reduces=20
economic<BR>growth in a country by 0.5-1 percent a year on average. For =
Ukraine,=20
This<BR>sum is comparable with the annual budget spent on education in=20
Ukraine.<BR><BR>More importantly, it makes an even greater difference =
for=20
economic growth in<BR>the long run because losses accumulate over time. =
The=20
negative impact of<BR>corruption on economic growth comes from the very=20
significant influence of<BR>corruption on investment rates (it can be as =
high as=20
5 percent).<BR><BR>In addition, corruption distorts distribution of =
resources=20
across<BR>industries. Countries with high corruption levels invest =
relatively=20
more<BR>resources in construction and less in education and social=20
programs.<BR><BR>A corrupt government official would prefer to finance a =
big=20
investment<BR>project with very uncertain costs where it is difficult to =
monitor<BR>expenditures - i.e. build a highway or an airport - rather =
then give=20
money<BR>for educational programs that are more transparent and easier =
to=20
control.<BR> &=
nbsp; <FONT=20
color=3D#800000 size=3D4><STRONG>CORRUPTION PERCEPTION =
INDEX<BR></STRONG></FONT>In=20
2006, Ukraine - together with the Dominican Republic, Georgia,=20
Mali,<BR>Mongolia, and Mozambique - occupied places 99 in the annual =
report on=20
the<BR>corruption perception index provided by Transparency=20
International.<BR><BR>The problem of high corruption in Ukraine is well=20
recognized by all parts </DIV>
<DIV>of the political spectrum. Party leaders of the ruling coalition =
and=20
the<BR>opposition publicly announced that fighting corruption should be =
a=20
priority<BR>in the government agenda.<BR><BR>On December 5, 2006, the =
Government=20
of Ukraine and Millennium Challenge<BR>Corporation - a U.S. program that =
seeks=20
to reduce poverty by rewarding<BR>countries for establishing open =
markets and=20
following other good governance<BR>practices - signed an agreement =
estimated at=20
US $500 million as the<BR>threshold program for development of Ukraine =
that=20
would be partially spent<BR>to finance an anti-corruption campaign as a =
part of=20
the threshold program<BR>for Ukraine.<BR><BR>Prime Minister Viktor =
Yanukovych=20
publicly stated that figure following a<BR>meeting with US Secretary of =
State=20
Condoleezza Rice. "The program will<BR>envisage actively combating =
corruption,=20
which will be a priority of the<BR>current Government," Yanukovych=20
said.<BR> &nbs=
p; <FONT=20
color=3D#800000 size=3D4><STRONG>BEST WAY TO REDUCE=20
CORRUPTION?<BR></STRONG></FONT>At the same time, Ukrainian politicians =
are very=20
much divided on the<BR>question of the best way to reduce =
corruption.<BR><BR>It=20
was very clearly demonstrated during the "Svoboda Slova", a popular =
TV<BR>show=20
where the top government officials, parliamentarians, and =
experts<BR>discuss=20
important political and economic topics in front of a large<BR>audience. =
The=20
program was devoted to discussion on corruption in Ukraine<BR>and was =
aired in=20
December 2006.<BR><BR>While the minister of defense expressed the =
opinion that=20
the best way to get<BR>rid of corruption in the army is to subcontract =
all=20
functions not directly<BR>related to defense to private companies, the =
minister=20
of transportation<BR>argued that more government controls and more =
detailed=20
regulations is the<BR>way to lower the corruption level in the =
transportation=20
sector.<BR><BR>In my opinion the minister of defense has a better =
strategy to=20
fight<BR>corruption. Winston Churchill once said: "If you have ten=20
thousand<BR>regulations you destroy all respect for the =
law."<BR><BR>Simplifying=20
cumbersome and lengthy laws and regulations, giving more<BR>economic =
freedom to=20
private companies, local governments, and organizations<BR>and getting =
rid of=20
politically driven decisions would substantially reduce<BR>corruption=20
opportunities for government officials and =
bureaucrats.<BR> <FONT=20
color=3D#800000 size=3D4><STRONG> DECENTRALIZED COUNTRIES LOWER=20
CORRUPTION<BR></STRONG></FONT>Raymond Fisman and Roberta Gatti, world =
experts in=20
the study of corruption,<BR>have demonstrated that more decentralized =
countries=20
have lower levels of<BR>corruption.<BR><BR>Therefore, the administrative =
reform=20
that gives more budgetary expenditures<BR>to be divided at the local =
level=20
suggested by the Socialist Party could be<BR>beneficial for Ukraine =
because it=20
would spur political competition between<BR>local governments, improve =
their=20
performance and lower corruption.<BR><BR>It is difficult to find the =
best=20
anti-corruption roadmap for in Ukraine.<BR>However, the establishment of =
a=20
strategy for this purpose should not be<BR>decided in a narrow circle of =
government officials or the ruling =
coalition's<BR>leaders.<BR><BR>According to=20
the Global Corruption Barometer report, political parties are<BR>the =
most=20
corrupt institutions of society as shown in Graph 1. Therefore, =
it<BR>would be=20
very dangerous to leave the politicians on their own in a hope =
that<BR>they will=20
miraculously solve all our problems.<BR><BR>For an anti-corruption =
campaign to=20
be a success, the government should work<BR>out the strategy in =
collaboration=20
with media, non-government organizations,<BR>and educational=20
institutions.<BR><BR>And if, on a wonderful day, people in power and the =
army of=20
state<BR>bureaucrats start behaving as role models for us by strictly =
following=20
all<BR>rules and regulations they have created for ordinary people, we =
would=20
become<BR>better citizens and stop cutting lines, violating traffic =
rules, and=20
bribing<BR>officials in an attempt to solve our everyday=20
problems. &nbs=
p;=20
-30-<BR>-----------------------------------------------------------------=
-----------------------------<BR>Oleksandr=20
Shepotylo, Ph.D., is an assistant professor of economics at<BR>EERC and =
Kyiv=20
Economics Institute. The views expressed in this article<BR>are those of =
the=20
author and do not represent the views of=20
above-mentioned<BR>organizations.<BR>------------------------------------=
-----------------------------------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.ukraine-observer.com/articles/228/991">http://www.ukra=
ine-observer.com/articles/228/991</A>=20
<BR>---------------------------------------------------------------------=
--------------------------<BR>[<A=20
href=3D"#i15">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>16<A=20
name=3Da16>.</A> <FONT color=3D#000080>LARGE U.S. STEEL PRODUCER =
NUCOR STARTS=20
PURCHASE </FONT></DIV>
<DIV><FONT color=3D#000080>OF PIG IRON FROM DONETSK REGION =
METALLURGICAL=20
PLANT</FONT><BR><BR>Ukrainian News Agency, Kyiv, Ukraine, Thu, February =
1,=20
2007<BR><BR>KYIV - One of the largest steel producers in the United =
States,=20
Nucor <BR>corporation has started purchase of pig iron from =
Makiivka-based=20
<BR>metallurgical plant (Donetsk region). Plant press service has =
disclosed this=20
<BR>to Ukrainian News.<BR><BR>According to press service representative, =
in=20
February, Makiivka plant has <BR>to supply 65,000 tons of pig iron to =
the=20
American corporation. As Ukrainian <BR>News earlier reported, in =
September 2006,=20
Makiivka plant reported on Nucor <BR>intention to purchase pig =
iron.<BR><BR>In=20
2007, Makiivka metallurgical plant intends to increase pig iron =
<BR>production=20
by 55% or 0.71 million tons to 2 million tons.<BR>In January 2006, the =
plant=20
produced 152,600 tons of pig iron, of them 50,400 <BR>tons were reserved =
for the=20
further sales.<BR><BR>Makiivka metallurgical plant closed joint-stock =
company=20
was founded in 2004 <BR>as part of a financial recovery program for the =
Makiivka=20
metallurgical mill <BR>open joint-stock company.<BR><BR>According to the =
Agency=20
for Development of the Stock Market's <BR>Infrastructure, as of March =
2006,=20
Zorino trading Limited, Zelino <BR>Commercional Limited (both based in =
Great=20
Britain), Mokrad Trading Ltd. <BR>(B.V.I.), and Kellor Enterprises LLS =
(USA)=20
each held 18.7943% in the plant.<BR><BR>The Kryvyi Rih-based Finoks =
company is=20
the keeper of these shareholdings <BR>which comprise 75.1771% of the =
shares.=20
Finoks is also the keeper of the <BR>Inhulets OMEP's =
shares.<BR><BR>According to=20
the Agency for the Development of Stock Market's <BR>Infrastructure, as =
of March=20
2006, 24.8229% of the Makiivka metallurgical <BR>plant's shares belonged =
to=20
Makiivka metallurgical mill. The plant ended 2005 <BR>with a loss of UAH =
235.41=20
million and net revenues of UAH 1,540.21 million.<BR><BR>Russian =
businessman=20
Vadim Novinsky's Smart Group (Dnipropetrovsk) controls <BR>Makiivka=20
metallurgical plant. 60.857% of the shares in the Makiivka =
<BR>metallurgical=20
mill belong to the State Property Fund of Ukraine<BR></DIV>
<DIV>--------------------------------------------------------------------=
---------------------------</DIV>
<DIV>[<A href=3D"#i16">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>17<A=20
name=3Da17>.</A> <FONT color=3D#000080>NETHERLANDS CO =
INVESTS IN UKRAINE=20
FOR FIRST TIME<BR> Acquires over 50% of Styrol chemical =
concern=20
(Horlivka, Donetsk region)<BR></FONT><BR>Ukrainian News Agency, Kyiv,=20
Ukraine, Friday, February 2, 2007 <BR><BR>KYIV - The Antimonopoly =
Committee=20
of Ukraine has authorized Dotterbloem <BR>Holding B.V. (the Netherlands) =
to=20
acquire over 50% of the shares in the <BR>Styrol chemical concern =
(Horlivka,=20
Donetsk region). The press service of the <BR>Antimonopoly Committee =
announced=20
this to Ukrainian News.<BR><BR>Dotterbloem Holding B.V. performs =
investment and=20
management operations. </DIV>
<DIV>It has never operated on Ukrainian territory. The company submitted =
the=20
<BR>relevant application to the Antimonopoly Committee on December=20
18.<BR><BR>The press service was unable to say whether Dotterbloem =
Holding B.V.=20
has <BR>already acquired over 50% of Styrol.<BR><BR>According to the =
information=20
available as of January, the Styrolkhiminvest <BR>limited liability =
company=20
owned 50.01% of the shares in Styrol while <BR>individuals owed =
14.19%. As=20
Ukrainian News earlier reported, Styrol intends <BR>to invest USD 50-80 =
million=20
in production development in 2007.<BR><BR>In addition to developing its =
core=20
production operations, Styrol plans to <BR>actively develop additional=20
operations such as production of pharmaceutical <BR>goods and=20
polystyrene.<BR><BR>Styrol ended 2005 with a net profit of UAH 513.13 =
million.=20
Its net revenues <BR>increased by UAH 622.58 million or 26.08% to UAH =
3,009.95=20
million in 2005, <BR>compared with=20
2004. &n=
bsp; &nb=
sp; =20
-30-<BR></DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>[<A=20
href=3D"#i17">return to index</A>] Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR><FONT=20
color=3D#800000> <FONT size=3D4>You are welcome =
to send=20
us names for the AUR distribution=20
list.</FONT><BR></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>18<A=20
name=3Da18>.</A> <FONT color=3D#000080>USAID REALIZING TWO-YEAR $8M =
PROJECT TO=20
DEVELOP<BR> =
TRADE,=20
INVESTMENT AND BUSINESS IN UKRAINE<BR><BR></FONT>Interfax Ukraine =
Economic,=20
Kyiv, Ukraine, Wed, January 31, 2007<BR><BR>KYIV - The United =
States Agency=20
for International Development (USAID) </DIV>
<DIV>has presented a project on trade, investment and business =
acceleration in=20
<BR>Ukraine (TIBA). According to a press release drawn up for the =
presentation,=20
<BR>the budget of the two-year project will be $8 million.<BR><BR>The =
project is=20
aimed at providing technical aid to the Ukrainian government <BR>and the =
private=20
sector in building trade, investment and business capacity, <BR>which =
is, in=20
turn, would accelerate Ukraine's joining the international=20
<BR>economy.<BR><BR>The project will develop trade in commodities and =
services=20
according to the <BR>requirements of the World Trade Organization and =
help=20
conduct regulatory <BR>reform aimed at building a favorable legal and =
business=20
environment to <BR>develop small and medium business in =
Ukraine.<BR><BR>Booz=20
Allen Hamilton President Don Pressley, presenting the project, said =
<BR>that it=20
would promote the development of private business in Ukraine.<BR><BR>He =
said=20
that the development of small and medium business requires that they =
<BR>have=20
access to the international markets, and that the government should=20
<BR>interfere less.<BR><BR>Pressley said that the USAID project would =
promote=20
further aid for Ukraine's <BR>joining the World Trade Organization, =
promote aid=20
to government institutions <BR>after Ukraine joins the organization, and =
promote=20
aid to improve the <BR>environment for the development of=20
business.<BR><BR>Pressley said that in particular, this aid concerns a =
cut in=20
the cost of <BR>running a business and a cut in the number of laws that =
regulate=20
this <BR>sphere. "The legal regulation should be cut to the =
minimum=20
level," he said.<BR><BR>In turn, Hennadiy Bilous, the deputy head of the =
state=20
committee for <BR>regulatory policy and entrepreneurship of Ukraine, =
said that=20
the two-year <BR>project would improve the investment climate in Ukraine =
and the=20
situation in <BR>the trade sphere.<BR><BR>He said that the Ukrainian =
government=20
is improving regulatory policy in <BR>entrepreneurship, the permit =
system and=20
the registration of procedures, and <BR>is relaxing requirements when =
starting a=20
business.<BR><BR>Earl Gast, Director for the USAID Regional Mission in =
Ukraine,=20
Moldova and <BR>Belarus, said that the new USAID project would build on =
the=20
achievements of <BR>the previous USAID BIZPRO project.<BR><BR>Gast said =
that the=20
project will improve investment activities, and the <BR>situation with =
the=20
regulation of business. "We hope that business management </DIV>
<DIV>will improve," he said.<BR><BR>Commenting on the investment climate =
in=20
Ukraine, Gast said that a gradual <BR>improvement over all the years of=20
Ukraine's independence has been seen.<BR><BR>Gast said that an increase =
in=20
foreign investment in Ukraine and interest not <BR>only from U.S. but =
also=20
European investors confirms this improvement. In <BR>particular, he said =
that=20
there is investment growth in Ukraine from Eastern <BR>Europe, =
especially=20
Poland, the Czech Republic and Baltic countries.</DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>[<A=20
href=3D"#i18">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>19<A=20
name=3Da19>.</A> <FONT color=3D#000080>POLISH ALUMINUM =
KETY TO=20
LAUNCH PRODUCTION IN<BR> UKRAINE IN =
10 DAYS;=20
EXPECTS FURTHER INVESTMENTS<BR><BR></FONT>Interfax Ukraine Economic, =
Kyiv,=20
Ukraine, Thursday, February 1, 2007<BR><BR>WARSAW - Polish aluminum firm =
Grupa=20
Kety expects to launch production in <BR>Ukraine within ten days and =
will=20
consider expanding manufacturing facilities <BR>in that country, Chief =
Executive=20
Dariusz Manko told reporters Thursday. "In <BR>Ukraine, production =
starts in ten=20
days," Manko said.<BR><BR>Kety said in early 2006 it would spend PLN 40 =
million=20
on the installation of <BR>an extruded-products press in Ukraine and =
Manko=20
expects further investments <BR>in the underserved Ukrainian =
market.<BR><BR>"We=20
have a large order-book [in Ukraine], the market is very receptive," the =
<BR>CEO=20
said. "That is why investments in just one press is unlikely to be the=20
<BR>extent of=20
it." &nb=
sp; &nbs=
p;  =
; =20
-30-</DIV>
<DIV>--------------------------------------------------------------------=
---------------------------<BR>[<A=20
href=3D"#i19">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>20<A=20
name=3Da20>.</A> <FONT color=3D#000080 size=3D4><STRONG>FRENCH =
GROUP DANONE TO=20
INVEST OVER EUR 20 M </STRONG></FONT></DIV>
<DIV><FONT color=3D#000080=20
size=3D4><STRONG> &n=
bsp; =20
IN KHERSON DAIRY PLANT CJSC RODYCH<BR></STRONG></FONT><BR>Interfax =
Ukraine=20
Economic, Kherson, Ukraine, Friday, January 26, 2007<BR><BR>KHERSON - =
French=20
group Danone is planning to invest over EUR 20 </DIV>
<DIV>million in the modernization of Kherson-based CJSC Rodych dairy =
plant,=20
</DIV>
<DIV>he Kherson mayor's press service reported.<BR><BR>The sum was =
discussed=20
ruing a meeting between Kherson Mayor Volodymyr</DIV>
<DIV>Saldo and Director General of Danone Ltd. for Ukraine Stephan=20
Batoux.<BR><BR>The investment will be conducive to the launch of such =
dairy=20
brands as <BR>Activia, Danissimo and Danone yoghurts, the source =
said.<BR><BR>To=20
launch the production of the new brands, French-produced equipment =
</DIV>
<DIV>will be installed at the plant to process locally produced cheese. =
At the=20
same <BR>time, the Rodych plant will continue producing dairy produce =
under its=20
own <BR>brand Vesely Pastushok.<BR><BR>As was reported earlier, on =
September 7,=20
2006, Danone, which has been <BR>working on the Ukrainian market since =
1999,=20
announced the acquisition of <BR>100% of CJSC Rodych dairy plant in =
Ukraine. The=20
deal was completed on <BR>October 2, 2006.<BR><BR>Danone also announced =
plans=20
for 2007 to start the modernization of the <BR>plant's production =
facilities and=20
increase dairy production from 30,000 to <BR>200,000 tonnes a year =
within 10=20
years. &=
nbsp; =20
-30-<BR>-----------------------------------------------------------------=
-----------------------------<BR>[<A=20
href=3D"#i20">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR> <FONT=20
color=3D#800000> <FONT size=3D4>Please contact us if you no =
longer=20
wish to receive =
the AUR </FONT></FONT></DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D<BR>21<A=20
name=3Da21>.</A> <FONT color=3D#000080>AUSTRIA'S MEINL LAND LTD TO =
MAKE FIRST=20
INVESTMENT IN<BR> UKRAINE WITH EUR 150 MILLION =
IN TRADE=20
CENTER IN ODESA<BR></FONT><BR>Interfax Ukraine Economic, Kyiv, Ukraine, =
Sunday,=20
January 25, 2007<BR><BR>KYIV - Austria's Meinl European Land Ltd. =
developing=20
company plans to </DIV>
<DIV>invest around EUR 150 million in building a trade center in Odesa,=20
according </DIV>
<DIV>to a company press release.<BR><BR>The total area of the trade =
center will=20
be 60,000 square meters, reads the<BR>release. The trade center is to be =
completed in late 2008. The profitability of </DIV>
<DIV>investment is over 12%, the company says.<BR><BR>According to the =
release,=20
Meinl European Land Ltd. at present does not<BR>invest in Ukraine, =
although the=20
company is consulting with local developers<BR>and researching possible =
future=20
investments.<BR><BR>The company is considering options for investment in =
the=20
development </DIV>
<DIV>of new directions in the real estate sphere and the building of =
trade=20
centers.<BR><BR>Meinl European Land Ltd. operates in the real estate =
sphere and=20
invests and<BR>develops real estate in various countries. At present, =
the=20
company plans to<BR>develop in the Czech Republic, Hungary, Latvia, =
Estonia,=20
Poland, Romania,<BR>Russia, Slovakia, Turkey, Bulgaria and =
Ukraine.<BR><BR>As of=20
September 30, 2006, the company's investment portfolio was EUR </DIV>
<DIV>1.233 billion, which included 150 projects in seven countries with =
revenues=20
</DIV>
<DIV>from leasing of around EUR 105=20
million.  =
; =20
-30-<BR>-----------------------------------------------------------------=
-------------------------------<BR>[<A=20
href=3D"#i21">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>22<A=20
name=3Da22>.</A> <FONT color=3D#000080>UKRAINE: NESTLE TO INVEST =
OVER $50 MLN=20
IN NEW PLANT </FONT></DIV>
<DIV><FONT=20
color=3D#000080> &nb=
sp; =20
Will employ 1,200 workers in Volinskiy =
Region<BR></FONT><BR>Interfax-Ukraine,=20
Kyiv, Ukraine, Wednesday, Jan 24, 2007<BR><BR>LUTSK - Swiss food giant =
Nestle=20
plans to invest over $50 million in building<BR>a new food plant in =
Ukraine's=20
Volinskiy region. The company signed the </DIV>
<DIV>relevant investment agreement on Tuesday, the press center of the=20
Volinskiy</DIV>
<DIV> regional council said.<BR><BR><FONT color=3D#800000>The new =
plant will=20
produce sauces, ketchup and baby food and will employ<BR>1,200=20
workers.<BR></FONT><BR>The press release also states that at an =
extraordinary=20
sitting of the<BR>regional council on Monday it was decided to provide =
34=20
hectares of land </DIV>
<DIV>for the plant.<BR><BR>Nestle Ukraine was set up in 1994 and in 1998 =
acquired a controlling stake<BR>in the confectionery company Svitoch, =
and in=20
November 2003 - 100% of<BR>Volynholding, which operates under the trade =
name=20
Torchinproduct.=20
rd<BR>-------------------------------------------------------------------=
-----------------------------</DIV>
<DIV>[<A href=3D"#i22">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>23<A=20
name=3Da23>.</A> <FONT color=3D#000080>HUNGARIAN SWEETS =
MAKER BONBONETTI=20
EXPECTS A </FONT></DIV>
<DIV><FONT color=3D#000080> MAJOR BOOM IN EXPORTS TO =
RUSSIA AND=20
UKRAINE IN 2007<BR><BR></FONT>Interfax Central Europe, Budapest, =
Hungary, Thu,=20
January 25, 2007<BR><BR>BUDAPEST - Hungary's largest sweets producer =
Bonbonetti=20
Group, fully </DIV>
<DIV>owned by Austria's Raiffeisen CEE Equity Fund LP, is planning to =
further=20
</DIV>
<DIV>increase exports to the Central and Eastern European (CEE) region =
and=20
</DIV>
<DIV>to Russia, CEO Sandor Santa told Interfax in an =
interview.<BR><BR><FONT=20
color=3D#800000>"One of our main goals of our three-year strategy is to =
increase=20
exports in<BR>the CEE region," Santa said. "We also expect a major boom =
in=20
exports to<BR>Russia and Ukraine in 2007."<BR></FONT><BR>Bonbonetti is =
set to=20
register revenues of more than HUF 12 billion in 2006,<BR>of which =
export=20
revenues represent almost 30%, Santa said. Exports are<BR>expected to =
increase=20
by more than HUF 400 million in 2007, Santa added.<BR><BR>Increasing the =
weight=20
of exports in group-level revenues has a great<BR>importance in the =
medium-term=20
goal of the company, Santa stressed, as the<BR>move is necessary in =
order to=20
remain competitive in the region.<BR><BR>"Taking an export-oriented path =
can be=20
a way out for Hungarian firms, as the<BR>Hungarian market is narrowing =
and the=20
macroeconomic environment is not as<BR>favorable as in the surrounding=20
countries," Santa said. "However, we are<BR>ready to compete by offering =
quality=20
and high standard of services."<BR><BR>The company currently exports =
sweets to=20
48 countries around the world<BR>including China and Mongolia, with the =
CEE=20
region and Eastern Europe among<BR>the most important markets, currently =
factory, which makes Bonbonetti the most<BR>important player on the =
domestic=20
market of intermediary products, supplying<BR>the Netherlands' Friesland =
and=20
France's Danone, Santa =
said. =20
-30-<BR>-----------------------------------------------------------------=
--------------------------------</DIV>
<DIV>[<A href=3D"#i23">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>24<A=20
name=3Da24>.</A> <FONT color=3D#000080> BIODIESEL OF =
BESSARABIA TO=20
LAUNCH=20
BIOETHANOL<BR>  =
; =20
MINI-PLANT IN ODESA REGION BY FEBRUARY<BR><BR></FONT>Interfax =
Ukraine=20
Economic, Kyiv, Ukraine, Friday, January 26, 2007<BR><BR>ODESA - =
Biodiesel of=20
Bessarabia Ltd. on January 29, 2007, is to launch a<BR>mini-plant to =
produce=20
biodiesel in Saratsky district of Odesa region, Odesa<BR>Regional =
Governor Ivan=20
Plachkov reported.<BR><BR><FONT color=3D#800000>The plant whose =
production will be=20
7,000 tonnes of biodiesel is the first<BR>enterprise of this kind in the =
region,=20
however, in future, when their number<BR>grows, prices of fuel are =
expected to=20
decline, Plachkov said. "Bioethanol<BR>will help smooth fuel price =
hikes," he=20
said.<BR></FONT><BR>As was reported, in 12 months after the launch of =
the=20
factory, Biodiesel of<BR>Bessarabia Ltd. is to double the plant's =
capacity to=20
15,000 tonnes a year.<BR>The number of jobs created under the project =
will grow=20
from 15 to 80 people.<BR>The company also plans to build an oil and fat =
factory=20
in the district.<BR><BR>As raw materials, Biodiesel of Bessarabia will =
use=20
rapeseed crops grown in<BR>Saratsky region, which expanded areas under =
crops in=20
2006 by four times to<BR>12,000=20
ha. &nbs=
p;  =
; =
=20
-30-</DIV>
<DIV>--------------------------------------------------------------------=
----------------------------<BR>[<A=20
href=3D"#i24">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>25<A=20
name=3Da25>.</A> <FONT color=3D#000080>UKRAINIAN PRESIDENT MEETS =
WITH U.S.=20
HELICOPTER<BR>  =
; =20
MAKER SIKORSKY AIRCRAFT CORPORATION<BR></FONT><BR>Interfax-AVN military =
news=20
agency website, Moscow, in English 18 Jan 07<BR>BBC Monitoring Service, =
United=20
Kingdom, Thursday, Jan 18, 2007<BR><BR>KYIV - Ukrainian President Viktor =
Yushchenko and Sergei Sikorsky </DIV>
<DIV>discussed cooperation between Ukrainian aircraft manufacturing =
firms </DIV>
<DIV>and Sikorsky Aircraft Corporation. Sergei Sikorsky, a son of the=20
world-</DIV>
<DIV>renowned inventor and designer, is a cofounder of Sikorsky Aircraft =
</DIV>
<DIV>Corporation.<BR><BR>Yushchenko said at the meeting that the =
powerful=20
technological and<BR>industrial potential of Ukrainian aircraft =
manufacturing=20
companies could<BR>serve as a good foundation for the Sikorsky Aircraft=20
Corporation's activity<BR>in Ukraine, the presidential press service =
said on=20
Thursday [18 January].<BR><BR>Yushchenko also confirmed his position =
regarding=20
the need to open a</DIV>
<DIV>museum for Igor Sikorsky in Kiev. Igor Sikorsky was born in Kiev in =
1889.=20
</DIV>
<DIV>He emigrated to the US in 1919, where he founded the Sikorsky Aero =
</DIV>
<DIV>Engineering Corporation in=20
1929. &n=
bsp; =20
-30-<BR>-----------------------------------------------------------------=
------------------------------<BR>[<A=20
href=3D"#i25">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>26<A=20
name=3Da26>.</A> <FONT color=3D#000080=20
size=3D4><STRONG>UKRAINIANS: THE INFERIORITY=20
SYNDROME?<BR></STRONG></FONT><BR>ANALYSIS & COMMENTARY: By Volodymyr =
Senchenko<BR>The Ukrainian Observer magazine, Issue 227<BR>The Willard =
Group,=20
Kyiv, Ukraine, January 2007<BR><BR>Foreigners are surprised when a =
Ukrainian=20
newscaster tells viewers at the<BR>end of his program: "Respect =
yourself, you=20
deserve it."<BR><BR>Based on their own life experience, foreigners may =
think=20
self-esteem is<BR>innate and therefore Ukrainians do not need to be =
daily=20
reminded that they<BR>should respect themselves.<BR><BR>However, such a =
phrase=20
is quite useful to Ukrainians. For our inferiority<BR>complex, which =
makes us=20
feel second-rate, petty and unimportant, is<BR>programmed and has =
penetrated our=20
outlooks and minds so deeply that </DIV>
<DIV>almost every individual Ukrainian has this ugly, shameful=20
trait.<BR><BR>Average Ukrainian citizens have to suppress their =
indecisiveness=20
before<BR>attracting attention.<BR><BR>Foreigners often notice this=20
characteristic behavior at customs. Ukrainians<BR>act humbly and show =
fearful=20
respect towards uniformed strangers simply<BR>performing their =
professional=20
duties. They act as if they conceal something<BR>or are guilty and so =
want to=20
appear better and more modest than they are.<BR><BR>A foreign friend =
once asked=20
me why I shunned customs officers. He did not<BR>know I had been taught =
since=20
childhood I was indebted to my motherland and<BR>that I was a mere screw =
in the=20
gigantic machine of the Soviet state, and<BR>that only top officials =
were=20
entitled to drive those screws in any way =
they<BR>wanted.<BR><BR>Foreigners also=20
become bemused when Ukrainian journalists or officials ask<BR>them for =
advice on=20
how to act in this or that situation. Once my friend<BR>complained to me =
that a=20
foreign doctor who he asked for advice replied that<BR>he himself had =
come to=20
Ukraine to study the experience of=20
Ukrainian<BR>colleagues.<BR><BR>Unfortunately, there are still many =
people in=20
Ukraine that think foreign<BR>products are better, more advanced and =
more=20
perfect. They are not guilty,<BR>however, for they could not compare =
things when=20
living behind the Iron<BR>Curtain.<BR><BR>The opening of the Soviet =
borders=20
blinded many Ukrainians with bright<BR>labels, neon signs and exquisite =
designs.=20
The younger generation, especially<BR>pop stars, tried to derive =
advantages from=20
their inferior fondness for<BR>foreign things.<BR><BR>They went abroad =
and often=20
performed in public transport or at bus stops </DIV>
<DIV>but returned home and achieved nationwide fame, stunning all with=20
their<BR>superficial European chic.<BR><BR>This makes foreigners believe =
the=20
inferiority complex is innate in<BR>Ukrainians, which is, in fact, not =
true=20
because people are born with no<BR>complexes, their behavior later being =
sculpted by life circumstances,<BR>education and environment. No doubt, =
if this=20
environment is poor and<BR>squalid, as it is in India's caste society, =
it will=20
produce certain<BR>stereotypes.<BR><BR>It provides the basis for some of =
our=20
traits: we, for example, never argue<BR>with directors but do what we =
think is=20
right or appropriate.<BR><BR>This trait is mirrored in the Russian =
simile, "as=20
stubborn as Ukrainians."<BR>However, doing what one believes should be =
done=20
contributed to the<BR>reputation of Ukrainians who are now good business =
people.<BR><BR>This trait somehow overshadows and muffles our lasting,=20
aggressive and<BR>tragic struggle for dignity. Oppressed, Ukrainians =
always=20
revolted, and<BR>there are many pages in our history showing how =
valorously we=20
fought for<BR>centuries to defend ourselves.<BR><FONT color=3D#800000=20
size=3D4><STRONG>OBSTINATE UKRAINIANS OPPRESSED AND=20
PRESSURED<BR></STRONG></FONT>Not only were "obstinate Ukrainians" =
oppressed and=20
pressured but also they<BR>were also encouraged to obey government and =
comply=20
with unnatural commands<BR>they were reluctant to follow.<BR><BR>The =
local elite=20
was offered privileges and gifts in exchange for loyalty.<BR>All =
governments=20
ruling Ukraine did such things: Austro-Hungary, Russia, and<BR>Poland. =
The=20
country's leaders were given titles, lands and other =
valuables.<BR><BR>Our=20
foreign rulers also tried to assimilate Ukrainians by forcing them =
to<BR>adopt=20
Catholicism and materially urging them to speak other languages. =
We<BR>were not=20
allowed to study, sing and write in Ukrainian but still sang =
our<BR>songs=20
without words.<BR><BR>Our history was also scrupulously censored; =
periods and=20
outstanding<BR>personalities that could have inspired the nation and =
determined=20
its course<BR>being deliberately removed. They even censored research =
papers on=20
the<BR>Trypillya culture, the most ancient culture in our =
country.<BR><BR>That=20
must have been done to prevent Ukrainians from looking to their =
roots,<BR>as=20
other Europeans do, to prove they are older than their "elder=20
Russian<BR>brothers."<BR><FONT color=3D#800000 size=3D4><STRONG> =
RUSSIANS=20
LOVED DEMONIZING UKRAINE'S HEROES</STRONG></FONT><BR>Russians also loved =
demonizing Ukraine's national heroes and sometimes<BR>exterminated them=20
physically. The names of Mazepa, Petlyara, Makhno and<BR>Bendera were =
not=20
uttered without the prefix "bandit." These names were used<BR>to =
frighten and=20
intimidate people.<BR><BR>Calling someone a follower of Petlyura or =
Bendera=20
meant that this person<BR>would be jailed. Even during this year's =
election,=20
there were no people with<BR>such surnames and very few Mazepas, even =
though he=20
lived in the 18th<BR>century. He is still scorned as "the traitor of =
Tsar Peter,=20
the Great" by<BR>leaders of Russia's Orthodox Church.<BR><BR>Sometimes=20
government ignored national priorities if a Ukrainian made =
some<BR>invention.=20
Such was the case with an apple variety cultivated by =
Symyrenko.<BR><BR>Over the=20
years of independence, Ukrainians have been gradually =
overcoming<BR>their=20
inferiority complex. They revived the names of their=20
prominent<BR>personalities.<BR><BR>I remember being stunned to learn =
about the=20
famous Ukrainian ballet master<BR>Serge Lyfar, performing in Paris's =
Grande=20
Opera, or about constructors of<BR>space devices, or that constructor =
Glushko=20
was among those who developed</DIV>
<DIV>and built the Katyusha multiple rocket launcher.<BR><BR>It is too =
early to=20
claim we remember all our names. Many pages and names of<BR>our history =
were=20
torn off, deleted or misinterpreted. We still need much<BR>time and =
effort to=20
re-establish Ukraine as a historical nation.<BR><BR>Foreign researchers =
helped=20
us see we are intelligent, educated and<BR>industrious. That is, no =
doubt, a=20
great result. At the same time, when being<BR>compared with Americans =
and=20
Europeans, Ukrainians see their actual<BR>imperfections.<BR><BR>Another =
factor=20
that contributed to our re-evaluation of who we are is the<BR>comparison =
of our=20
technologies and appliances with those produced in </DIV>
<DIV>Europe and Asia.<BR><BR>We have already recovered from the first =
shock and=20
surprise from the<BR>lustrous design of those devices, and that =
comparison has=20
ruined the myth of<BR>foreign superiority, although we thought only our =
military=20
equipment was<BR>equal to theirs. We now often see signs in shops =
declaring that=20
a product is<BR>produced in Ukraine and in accordance with the EU=20
standards.<BR><FONT color=3D#800000>ORANGE REVOLUTION SEMINAL EVENT IN =
NATION'S=20
REVIVAL</FONT><BR>However, the greatest events that radically influenced =
us were=20
the<BR>Independence Square demonstrations of 2004, generally referred to =
as=20
the<BR>Orange Revolution. In fact, it was not a revolution at all. This=20
became<BR>obvious when its leaders gained power and betrayed their=20
slogans.<BR><BR>Nevertheless, it was the seminal event in the nation's =
revival.=20
It must have<BR>been the greatest revolution since the Liberating War of =
Istanbul, Warsaw, Moscow<BR>and Sweden, but the nation, which Europe =
called the=20
Cossack nation, was<BR>formed and existed for centuries =
afterwards.<BR><BR>It is=20
clear that the 2004 events will be inspiring Ukrainians for =
decades.<BR>The=20
Maidan spirit and values will be passed on from one generation=20
to<BR>another.<BR><BR>Our posterity will no longer be offspring of the=20
exterminated, oppressed<BR>generation but of the generation of free, =
proud and=20
self-respecting parents.<BR>They will not berate themselves, complain =
and ask=20
others for advice.<BR><BR>To progress to that time, we must often tell=20
Ukrainians: "Respect yourself,<BR>you deserve=20
it." &nb=
sp; &nbs=
p; =20
-30-<BR>-----------------------------------------------------------------=
---------------------------<BR>LINK:=20
<A=20
href=3D"http://www.ukraine-observer.com/articles/227/978">http://www.ukra=
ine-observer.com/articles/227/978</A> <BR>--------------------------=
------------------------------------------------------------------</DIV>
<DIV>Subheadings added editorially by the AUR</DIV>
<DIV>--------------------------------------------------------------------=
------------------------<BR>[<A=20
href=3D"#i26">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>27<A=20
name=3Da27>.</A> <FONT =
color=3D#000080=20
size=3D4><STRONG>STRUGGLE ERUPTS OVER ANCIENT=20
CHURCH<BR><BR></STRONG></FONT>ANALYSIS & COMMENTARY: Elisabeth =
Sewall,=20
Assistant Editor<BR>Kyiv Post, Kyiv, Ukraine, Thursday, February 08=20
2007<BR><BR>An inside view of the disputed Church of St. Cyril of =
Alexandria,=20
which<BR>dates to the 12th century. Preservationists say the burning of=20
candles<BR>and incense from religious services are damaging the church's =
old=20
murals.<BR><BR>A medieval Kyiv church decorated with priceless murals is =
at the=20
center of<BR>an escalating dispute between museum administrators and a =
local=20
church<BR>subordinate to the Moscow Patriarchate.<BR><BR>For the last =
decade or=20
so, the 12th century Church of St. Cyril of<BR>Alexandria has been =
functioning=20
as both a place of worship under the<BR>administration of the Ukrainian =
Orthodox=20
Church Moscow Patriarchate<BR>(UOCMP) and as a state historical museum =
open to=20
visitors.<BR><BR>Now museum officials say that daily religious =
practices, such=20
as the<BR>burning of candles and incense, are damaging the=20
murals.<BR><BR>According to a report issued last October by the National =
Research<BR>Restoration Center of Ukraine, St. Cyril's fragile artworks, =
dating=20
back to<BR>Kyivan Rus years, need a proper microclimate to=20
survive.<BR><BR>According to preservationists, the UOCMP doesn't think =
the=20
murals, some<BR>painted by 19th century Russian artist Mikhail Vrubel, =
are=20
"iconic," and<BR>therefore they can simply be painted over or covered=20
up.<BR><BR>Sergiy Geruk, editor of Kyrylitsa news, a publication of the=20
Metropolitan of<BR>the UOCMP, called these claims "distorted," and meant =
to make=20
his fellow<BR>churchmen look "uneducated."<BR><BR>"What's at issue is =
rights=20
over use of the church, but that doesn't mean<BR>that the church will =
suffer=20
from that use," he said.</DIV>
<DIV><BR>According to him, it's up to the government to resolve the =
issue.=20
But<BR>preservationists claim that the UOCMP has already found a =
loophole in=20
the<BR>law, allowing it to pay a small fee for the right to redecorate =
the=20
church.<BR><BR>"We need to do everything in our power to make sure the =
St.=20
Cyril's remains<BR>under the stewardship of the museum," said Iryna =
Marhodina,=20
assistant<BR>director at St. Sophia's National Conservation =
Area.<BR><BR>"We=20
don't think that the UOCMP has adequate resources and =
educated<BR>specialists to=20
provide proper security and restoration, or to run the<BR>educational=20
tours."<BR><BR>"It should be primarily a museum, and there should be =
separate=20
church<BR>services - not every day, but a return to the former schedule =
of=20
church<BR>services only on Saturdays and Sundays," she =
added.<BR><BR>Instead,=20
according to Marhodina, the UOCMP could hold daily services at =
St.<BR>Basil's=20
church, which is adjacent to St. Cyril's.</DIV>
<DIV><BR>St. Basil's was constructed using state funds for the express =
use of=20
the<BR>UOCMP. However, due to shortfalls in financing, the interior =
walls are=20
still<BR>bare. In 1965,<BR><BR>The Church of St. Cyril was put under the =
care of=20
the National Preserve of<BR>St. Sophia, which also administers the =
Pecherska=20
Lavra complex, St. Sophia's<BR>Cathedral and St. Andrew's =
Church.<BR><BR>In=20
1994, St. Cyril's was designated a museum accommodating limited=20
church<BR>services. The situation changed significantly in 2004, when an =
agreement was<BR>drawn up that made UOCMP the main steward of St. =
Cyril's,=20
limiting museum<BR>oversight.<BR><BR>Regulation of the monument falls =
under the=20
jurisdiction of the Ministry of<BR>Construction, Housing and Communal =
Services=20
of Ukraine. But American and<BR>Canadian preservationists have recently =
begun=20
writing petitions asking the<BR>Ukrainian government to stop the UOCMP =
from=20
using St. Cyril's.<BR><BR>Olenka Pevny, an art historian specializing in =
Late=20
Antique, Byzantine and<BR>Medieval art history at the University of =
Richmond in=20
Virginia, says that<BR>her letter campaign is having an impact, gaining =
the=20
support of New York's<BR>Metropolitan Museum of Art and the Early Slavic =
Studies=20
Organization of the<BR>United States, among others.<BR><BR>Pevny said =
the sole=20
purpose of the campaign is to make sure that Ukraine's<BR>cultural =
heritage is=20
protected for prosperity. "The issue I am raising is not </DIV>
<DIV>whether there are qualified and earnest individuals in the church =
versus=20
the </DIV>
<DIV>museums."<BR><BR>"What I am saying is that in all of Ukraine there =
survives=20
only one<BR>12th-century monument with frescoes. It is the second most=20
important<BR>medieval monument in all of Ukraine after the St. Sofia =
Cathedral.=20
The<BR>Church of St. Cyril should be designated a historical-cultural=20
landmark<BR>belonging to all the Ukrainian people," she =
said.<BR><BR>Pevny has=20
started a campaign on behalf of St. Sophia's National Preserve =
to<BR>apply to=20
the World Monuments Fund to nominate St. Cyril's for a place on<BR>the =
Fund's=20
Watch List of the World's 100 Most Significant Endangered =
Sites.<BR><BR>The=20
Cabinet of Ministers of Ukraine recently removed 300 monuments =
from<BR>the=20
protective list of historical-cultural sites, allowing them to =
be<BR>considered=20
for "re-appropriation" and permanent Church use.<BR><BR>Pevny suspects =
that St.=20
Cyril's could be on this=20
list. =20
-30-<BR>-----------------------------------------------------------------=
--------------------------------<BR>LINK:=20
<A=20
href=3D"http://www.kyivpost.com/opinion/26055/">http://www.kyivpost.com/o=
pinion/26055/</A><BR>----------------------------------------------------=
---------------------------------------------<BR>[<A=20
href=3D"#i27">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>28<A=20
name=3Da28>.</A> <FONT color=3D#000080 size=3D4><STRONG>INTERNET =
ENCYCLOPEDIA OF=20
UKRAINE=20
FEATURES:<BR> =
=20
THE ART OF FRESCO PAINTING IN UKRAINE<BR></STRONG></FONT><BR>Internet=20
Encyclopedia of Ukraine (IEU) Newsletter<BR>Dr. Marko R. Stech, Managing =
Director, CIUS Press<BR>Project Manager, Internet Encyclopedia of=20
Ukraine<BR>Toronto, Ontario, Canada, February 2007<BR><BR><FONT=20
color=3D#800000>BECAUSE OF THE CURRENT CONTROVERSY REGARDING THE<BR>FATE =
OF THE=20
FRESCOES OF SAINT CYRIL'S CHURCH IN KYIV,<BR><BR>INTERNET ENCYCLOPEDIA =
OF=20
UKRAINE FEATURES:<BR>THE ART OF FRESCO PAINTING IN UKRAINE (February=20
2007)<BR></FONT><BR>In the Kyivan Rus' the fresco was the principal =
method of=20
decorating church<BR>interiors. While Byzantine-style mosaics were =
limited to=20
the central part<BR>of a church, frescoes covered all the side apses, =
vaults,=20
columns and walls<BR>of the side naves, and sometimes even the arch =
supports,=20
galleries, niches,<BR>and external portals. In Byzantium, mosaics were =
never=20
mixed with frescoes<BR>in the same building; this is a unique practice =
of=20
Ukrainian church art.<BR><BR>Harmony between mosaic and fresco was =
achieved by=20
using the same<BR>dominant colors. The most famous examples of this =
decorative=20
system<BR>are Saint Sophia Cathedral (1037) and the Cathedral of Saint=20
Michael's<BR>Golden-Domed Monastery (mid-12th century) in =
Kyiv.<BR><BR>After the=20
middle of the 12th century frescoes almost completely =
replaced<BR>mosaics in the=20
decoration of church interiors. The most complete set of<BR>frescoes =
from this=20
period has been preserved in the church of Saint Cyril's<BR>Monastery in =
Kyiv.<BR><BR>Learn more about the art of fresco painting in Ukraine by=20
visiting:<BR><A=20
href=3D"http://www.encyclopediaofukraine.com/featuredentry.asp">http://ww=
w.encyclopediaofukraine.com/featuredentry.asp</A><BR>or=20
by visiting: <A=20
href=3D"http://www.encyclopediaofukraine.com">http://www.encyclopediaofuk=
raine.com</A><BR>and=20
searching for such entries as:<BR><BR><FONT color=3D#800000>FRESCO=20
PAINTING.</FONT> A method of painting on freshly plastered walls=20
with<BR>powdered pigments that are resistant to the erosive action of =
lime.=20
Before<BR>the colors are applied to the wet plaster the main lines of =
the=20
composition<BR>are usually traced on the preceding coat. The painting is =
very=20
durable and<BR>is applied to both interior and exterior walls. The =
origins of=20
fresco<BR>painting in Ukraine can be traced back to the 4th century=20
BC.<BR><BR>Frescoes adorned the homes, public buildings, and tombs of =
the=20
Greek<BR>colonists and Scythians on the coast of the Black Sea. The most =
interesting<BR>ancient frescoes from the 1st century BC were discovered =
during=20
excavations<BR>of burial sites in Kerch in the tomb of =
Demeter.<BR><BR><FONT=20
color=3D#800000>SAINT SOPHIA CATHEDRAL.</FONT> Saint Sophia Cathedral is =
a=20
masterpiece of<BR>the art and architecture of Ukraine and Europe. It was =
built=20
in Kyiv at the<BR>height of Kyivan Rus', in the Byzantine style, and=20
significantly transformed<BR>during the baroque period. The cathedral =
was=20
founded by Grand Prince<BR>Yaroslav the Wise and built between 1037 and=20
1044.<BR><BR>The original building, most of which remains at the core of =
the=20
existing<BR>cathedral, is a cross-in-square plan with twelve cruciform =
piers=20
marking<BR>five east-west naves intersected by five transverse aisles. =
The=20
cathedral's<BR>interior is decorated with magnificent 11th-century =
mosaics and=20
frescoes.<BR>Exterior ornamentation of the original 11th-century walls =
consists=20
of<BR>decorative brickwork, the monochromatic painting of key=20
architectural<BR>elements, and a number of frescoes.<BR><BR><FONT=20
color=3D#800000>SAINT MICHAEL'S GOLDEN-DOMED MONASTERY.</FONT> An=20
Orthodox<BR>men's monastery in Kyiv. In the 1050s Prince Iziaslav =
Yaroslavych=20
built<BR>Saint Demetrius's Monastery and Church in the old upper city of =
Kyiv,<BR>near Saint Sophia Cathedral.<BR><BR>In 1108-13 his son, =
Sviatopolk II=20
Iziaslavych, built a church at the<BR>monastery dedicated to Saint =
Michael the=20
Archangel. The monastery was<BR>mostly destroyed during the Tatar =
invasion of=20
1240 and ceased to exist.<BR><BR>Written records confirm that it was =
reopened by=20
1496. Soon afterward it<BR>began to be known as Saint Michael's =
Golden-Domed=20
Monastery, its name<BR>being taken from the church built by Sviatopolk =
II=20
Iziaslavych. Restored and<BR>enlarged over the 16th century, it became =
one of=20
the most popular and<BR>wealthy monasteries in Ukraine. ...<BR><BR><FONT =
color=3D#800000>SAINT CYRIL'S MONASTERY</FONT>. A monastery founded by =
Grand=20
Prince<BR>Vsevolod Olhovych ca 1140 on the outskirts of medieval Kyiv. =
Its=20
church,<BR>Saint Cyril's, was built ca 1146. The church's frescoes are =
fine=20
examples of<BR>12th-century Ukrainian art and the influence of=20
Bulgarian-Byzantine<BR>painting on it.<BR><BR>They depict the Nativity =
of=20
Christ, the Presentation of Christ at the <BR>Temple, the Eucharist, the =
Annunciation, the Dormition, the Last Judgment </DIV>
<DIV>and Apocalypse, an angel gathering the heavens into a scroll, the =
apostles,=20
the<BR>evangelists, and various prophets and martyrs.<BR><BR>Murals of=20
saints-Saint Cyril and Saint Methodius, Saint John the =
Macedonian,<BR>Saint=20
Euphemios-adorn its pillars, and compositions depicting Saint =
Cyril<BR>teaching=20
the heretic, teaching in the cathedral, and teaching the emperor<BR>are =
found in=20
the southern=20
apse. &n=
bsp; =20
-30-<BR>-----------------------------------------------------------------=
---------------------------<BR>The=20
preparation, editing, and display of the IEU entries associated =
with<BR>the art=20
of fresco painting in Ukraine by the financial support of =
the<BR>CANADIAN=20
FOUNDATION FOR UKRAINIAN STUDIES.<BR><BR><FONT color=3D#800000>ABOUT =
IEU:</FONT>=20
Once completed, the Internet Encyclopedia of Ukraine will be<BR>the most =
comprehensive source of information in English on Ukraine, =
its<BR>history,=20
people, geography, society, economy, and cultural heritage. With<BR>over =
20,000=20
detailed encyclopedic entries supplemented with thousands of<BR>maps,=20
photographs, illustrations, tables, and other graphic and/or =
audio<BR>materials,=20
this immense repository of knowledge is designed to present<BR>Ukraine =
and=20
Ukrainians to the world.<BR><BR>At present, only 11% of the entire =
planned IEU=20
database is available on the<BR>IEU site. New entries are being edited, =
updated,=20
and added daily. However,<BR>the successful completion of this ambitious =
and=20
costly project will be<BR>possible only with the financial aid of the =
IEU=20
supporters. Become the IEU<BR>supporter and help the CIUS in creating =
the=20
world's most authoritative<BR>electronic information resource about =
Ukraine and=20
Ukrainians!<BR>----------------------------------------------------------=
-----------------------------------<BR>Dr.=20
Marko R. Stech, Managing Director, CIUS Press<BR>Project Manager, =
Internet=20
Encyclopedia of Ukraine<BR>Project Manager, Hrushevsky Translation=20
Project<BR>Canadian Institute of Ukrainian Studies<BR>University of =
Toronto, 20=20
Orde Street, Rm. 124<BR>Toronto, Ontario M5T 1N7; tel: (416) 946-7326; =
fax:=20
(416) 978-2672<BR><A=20
href=3D"http://www.utoronto.ca/cius">www.utoronto.ca/cius</A>; <A=20
href=3D"http://www.encyclopediaofukraine.com">www.encyclopediaofukraine.c=
om</A><BR>---------------------------------------------------------------=
--------------------------------<BR>[<A=20
href=3D"#i28">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>29<A=20
name=3Da29>.</A> <FONT color=3D#000080>KYIV MOHYLA ACADEMY =
FUNDRAISER IN=20
WASHINGTON</FONT> </DIV>
<DIV><FONT=20
color=3D#000080> &nb=
sp; &nbs=
p;  =
; =20
Sunday, February 11, 2007</FONT></DIV>
<DIV><FONT color=3D#000080></FONT> </DIV>
<DIV>Action Ukraine Report (AUR) #813, Article 29</DIV>
<DIV>Washington, D.C., Friday, February 9, 2006</DIV>
<DIV><FONT face=3DArial></FONT><BR>WASHINGTON - <FONT =
color=3D#800000>The Kyiv=20
Mohyla Foundation will host fundraiser in </FONT></DIV>
<DIV><FONT color=3D#800000>the Washington/Baltimore area for a premier =
Ukrainian=20
university.<BR></FONT> <BR>WHAT: Kyiv Mohyla Academy Fundraiser =
&=20
Awareness Event/Dinner<BR>WHEN: Sunday, February 11, 1:00 pm<BR>WHERE: =
St.=20
Andrews Ukrainian Orthodox Cultural Center<BR>15100 New Hampshire Ave., =
Silver=20
Spring, MD 20905 <BR> <BR>Please make reservations prior to the =
event by=20
calling: <BR>301-593-5316 (Valentyn Zabijaka); or 301-873-2035 (Andriy =
Bihun);=20
<BR>or 773-685-1828 (Marta=20
Farion)<BR>--------------------------------------------------------------=
---------------------------------<BR>[<A=20
href=3D"#i29">return to index</A>] [Action Ukraine Report (AUR) =
Monitoring=20
Service]<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>30<A=20
name=3Da30>.</A> <FONT color=3D#000080 size=3D4><STRONG>CIUS PRESS =
PRESENTS A=20
GUIDE FOR=20
UKRAINIAN<BR> =
&=
nbsp; =20
GENEALOGICAL RESEARCH</STRONG></FONT>=20
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV>CIUS Press, University of Alberta, Edmonton, AB, Canada, Feb,=20
2007<BR><BR>RE: John D. Pihach, Ukrainian Genealogy: A Beginner's =
Guide<BR>CIUS=20
Pres, 272 pp., $54.95 (cloth). $34.95 (paper)<BR><BR><FONT =
color=3D#800000>John D.=20
Pihach's Ukrainian Genealogy is a guide to tracing one's Ukrainian =
<BR>ancestry=20
in Europe. Consideration is also given to North American records =
<BR>that are=20
specifically Ukrainian or relate to the immigrant =
experience.<BR><BR>Because the=20
overwhelming majority of people of Ukrainian origin in Canada <BR>and =
the United=20
States have roots in western Ukraine or southeastern Poland, <BR>the =
guide=20
concentrates on the resources of those regions.<BR></FONT><BR>This =
handbook is=20
intended primarily for those whose ethnic roots are <BR>Ukrainian, =
although some=20
of the material in it may be useful to other groups <BR>with roots in=20
Ukraine.<BR><BR>Chapters 1 and 2 discuss general topics that are =
preliminary to=20
research. <BR>Personal names are examined in chapter 3. Chapters 4 and 5 =
outline=20
the early <BR>religious experiences of Ukrainians in North America and =
the=20
church records <BR>that are available. Chapter 6 addresses the crucial =
question=20
of determining <BR>the name of the European ancestral =
community.<BR><BR>Chapter=20
7 explains how to locate places on a map, describes the various=20
<BR>administrative divisions that existed in the past, and looks at the =
many=20
<BR>types of maps that pinpoint the location of the ancestral village =
and even=20
<BR>the actual home.<BR><BR>The resources for learning the history of a =
specific=20
region are covered in <BR>chapter 8. Chapters 9 and 10 are devoted to=20
church-based birth, marriage, <BR>and death records, the principal =
overseas=20
genealogical resource. Chapters 11 <BR>and 12 survey other overseas=20
materials.<BR><BR>Several appendixes describe Ukrainian transliteration =
schemes=20
and present a <BR>key to the scripts of the languages that were used in =
record=20
keeping; <BR>provide a starting point for research by other ethnic =
groups with=20
roots in <BR>Ukraine; and list useful Web sites.<BR><BR>John D. Pihach =
received=20
a B.Sc. degree in physics from the University of <BR>British Columbia =
and=20
studied studio fine arts at Langara College, Vancouver. <BR>He has spent =
many=20
years wandering about Asia and Europe and has made a </DIV>
<DIV>dozen trips to Eastern Europe, where he has done genealogical =
research at=20
</DIV>
<DIV>several archives.<BR><BR>He works as a weather observer and is the =
library=20
chairperson of the East <BR>European Genealogical Society in Winnipeg =
and author=20
of several articles in <BR>Galician genealogy..<BR><BR>Orders can be =
placed=20
online at:<BR><A=20
href=3D"http://www.utoronto.ca/cius/publications/books/ukrainiangenealogy=
.htm">http://www.utoronto.ca/cius/publications/books/ukrainiangenealogy.h=
tm</A><BR>and=20
by: e-mail: <A href=3D"mailto:cius@ualberta.ca">cius@ualberta.ca</A>; =
telephone:=20
(780) 492-2973 between </DIV>
<DIV>8:30 am and 4:30 pm (MST). fax: (780) 492-4967.</DIV>
<DIV><BR>Mail: CIUS Press, 450 Athabasca Hall, University of Alberta, =
Edmonton,=20
</DIV>
<DIV>AB, Canada T6G 2E8.<BR><BR>SPECIAL OFFER: MORE FOR LESS (valid only =
through=20
Web site)<BR>Buy the paperback edition of this book together with =
Ukrainians in=20
Canada: <BR>The Formative Years, 1891-1924 (cloth, $49.95) and save=20
20%<BR>[Total Regular Price: $34.95 + $49.95 =3D $84.90]Purchase =
Together:=20
$67.92<BR><BR>CIUS Press is the largest publisher of English-language =
material=20
about <BR>Ukraine. It is the publishing arm of the Canadian Institute of =
Ukrainian <BR>Studies at the University of Alberta and the University of =
Toronto. The <BR>emergence of Ukraine as an independent state has =
focused=20
general and <BR>scholarly interest on Ukrainian studies, and CIUS Press =
is=20
meeting that <BR>interest and need with a sizeable offering of new, =
forthcoming,=20
and </DIV>
<DIV>already published=20
books.<BR>---------------------------------------------------------------=
-------------------------<BR>Dr.=20
Marko R. Stech, Managing Director, CIUS Press<BR>Project Manager, =
Internet=20
Encyclopedia of Ukraine<BR>Project Manager, Hrushevsky Translation=20
Project<BR>Canadian Institute of Ukrainian Studies<BR>University of =
Toronto; 20=20
Orde Street, Rm. 124<BR>Toronto, Ontario M5T 1N7; tel: (416) 946-7326; =
fax:=20
(416) 978-2672<BR><A=20
href=3D"http://www.utoronto.ca/cius">www.utoronto.ca/cius</A>; <A=20
href=3D"http://www.encyclopediaofukraine.com">www.encyclopediaofukraine.c=
om</A></DIV></DIV>
<DIV>--------------------------------------------------------------------=
--------------------------<BR>[<A=20
href=3D"#i30">return to index</A>] [Action Ukraine Report (AUR) =
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<DIV> &n=
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color=3D#000080> </FONT><FONT color=3D#800000><EM>"UKRAINE - A COUNTRY =
OF NEW=20
OPPORTUNITIES"<BR></EM></FONT>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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<DIV>
<DIV> <FONT color=3D#000080=20
size=3D4><STRONG> &n=
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UKRAINE PROGRAM - SPONSORS</STRONG></FONT></DIV></DIV>
<DIV>
<DIV><FONT color=3D#000080=20
size=3D4><STRONG> &n=
bsp; &nb=
sp; =20
</STRONG> Action Ukraine Report (AUR)</FONT></DIV>
<DIV><FONT color=3D#000080 size=3D4><FONT=20
size=3D3> &nbs=
p; =20
Holodomor Art and Graphics Collection & Exhibitions<BR><FONT=20
color=3D#000000> </F=
ONT> "Working=20
to Secure & Enhance Ukraine's Democratic =
Future"<BR></FONT><BR></FONT></DIV>
<DIV>
<DIV>1. <FONT color=3D#800000 size=3D4>THE BLEYZER =
FOUNDATION</FONT>, Dr.=20
Edilberto Segura, </DIV>
<DIV>Chairman; Victor Gekker, Executive Director, Kyiv, Ukraine; </DIV>
<DIV>Washington, D.C., <A=20
href=3D"http://www.bleyzerfoundation.com">http://www.bleyzerfoundation.co=
m</A>.</DIV>
<DIV> Additional supporting sponsors for the Action =
Ukraine=20
Program are:<BR>2. <FONT color=3D#000080>UKRAINIAN FEDERATION OF =
AMERICA=20
(UFA)</FONT>, Zenia Chernyk,<BR>Chairperson; Vera M. Andryczyk, =
President;=20
Huntingdon Valley,<BR>Pennsylvania<BR>3. <FONT =
color=3D#000080>KIEV-ATLANTIC=20
GROUP</FONT>, David and Tamara Sweere, Daniel<BR>Sweere, Kyiv and =
Myronivka,=20
Ukraine, 380 44 298 7275 in Kyiv,<BR><A=20
href=3D"mailto:kau@ukrnet.net">kau@ukrnet.net</A><BR>4. <FONT=20
color=3D#000080>ESTRON CORPORATION</FONT>, Grain Export Terminal =
Facility=20
&<BR>Oilseed Crushing Plant, Ilvichevsk, Ukraine<BR>5. Law firm =
<FONT=20
color=3D#000080>UKRAINIAN LEGAL GROUP</FONT>, Irina Paliashvili,=20
President;<BR>Kiev and Washington, <A=20
href=3D"mailto:general@rulg.com">general@rulg.com</A>, <A=20
href=3D"http://www.rulg.com">www.rulg.com</A>.<BR>6. <FONT =
color=3D#000080>BAHRIANY=20
FOUNDATION, INC.</FONT>, Dr. Anatol Lysyj, Chairman,<BR>Minneapolis,=20
Minnesota<BR>7. <FONT color=3D#000080>VOLIA SOFTWARE</FONT>, Software to =
Fit Your=20
Business, Source your<BR>IT work in Ukraine. Contact: Yuriy Sivitsky, =
Vice=20
President, Marketing,<BR>Kyiv, Ukraine, <A=20
href=3D"mailto:yuriy.sivitsky@softline.kiev.ua">yuriy.sivitsky@softline.k=
iev.ua</A>;=20
Volia Software website:<BR><A=20
href=3D"http://www.volia-software.com/">http://www.volia-software.com/</A=
> or Bill=20
Hunter, CEO Volia Software,<BR>Houston, TX 77024; <A=20
href=3D"mailto:bill.hunter@volia-software.com">bill.hunter@volia-software=
.com</A>.<BR>8.=20
<FONT color=3D#000080>ODUM</FONT>- Association of American Youth of =
Ukrainian=20
Descent,<BR>Minnesota Chapter, Natalia Yarr, Chairperson<BR>9. <FONT=20
color=3D#000080>UKRAINE-U.S. BUSINESS COUNCIL</FONT>, Washington, =
D.C.,<BR>Morgan=20
Williams, SigmaBleyzer, Acting-President & Chairman,=20
<DIV>Executive Committee, Board of Directors; John Stephens, Cape </DIV>
<DIV>Point Capital, Secretary/Treasurer; Shannon Herzfeld, ADM, =
Chair,</DIV>
<DIV>Agribusiness Working Group; Irina Paliashvili, Ukrainian =
Legal</DIV>
<DIV>Group, Chair, Legal Affairs Working Group. </DIV></DIV>
<DIV>10. <FONT color=3D#000080>UKRAINIAN ORTHODOX CHURCH OF THE=20
USA</FONT>, Archbishop</DIV>
<DIV>Antony, South Bound Brook, New Jersey, <A=20
href=3D"http://www.uocofusa.org">http://www.uocofusa.org</A> </DIV>
<DIV>11. <FONT color=3D#000080>UKRAINIAN AMERICAN COORDINATING =
COUNCIL</FONT>=20
(UACC),<BR>Ihor Gawdiak, President, Washington, D.C., New York, New =
York<BR>12.=20
<FONT color=3D#000080>U.S.-UKRAINE FOUNDATION (USUF)</FONT>, Nadia=20
Komarnyckyj<BR>McConnell, President; John Kun, Vice President/COO;=20
Vera<BR>Andruskiw, CPP Wash Project Director, Washington, D.C.;=20
Markian<BR>Bilynskyj, VP/Director of Field Operations; Marta Kolomayets, =
CPP<BR>Kyiv Project Director, Kyiv, Ukraine. Web: <A=20
href=3D"http://www.USUkraine.org">http://www.USUkraine.org</A><BR>13. =
<FONT=20
color=3D#000080>WJ GROUP of </FONT>Ag Companies, Kyiv, Ukraine, =
David=20
Holpert, Chief </DIV>
<DIV>Financial Officer, Chicago, IL; <A=20
href=3D"http://www.wjgrain.com/en/links/index.html">http://www.wjgrain.co=
m/en/links/index.html</A></DIV>
<DIV>14. <FONT color=3D#000080>EUGENIA SAKEVYCH DALLAS</FONT>, =
Author, "One=20
Woman, Five </DIV>
<DIV>Lives, Five Countries," 'Her life's journey begins with the =
1932-1933=20
</DIV>
<DIV>genocidal famine in Ukraine.' Hollywood, CA, <A=20
href=3D"http://www.eugeniadallas.com">www.eugeniadallas.com</A>. </DIV>
<DIV>15. <FONT color=3D#000080>ALEX AND HELEN WOSKOB</FONT>, =
College Station,=20
Pennsylvania</DIV>
<DIV>16. <FONT color=3D#000080>SWIFT FOUNDATION</FONT>, San Luis =
Obispo,=20
California </DIV>
<DIV>
<DIV>17. <FONT color=3D#000080>TRAVEL TO UKRAINE</FONT> website, <A =
href=3D"http://www.TravelToUkraine.org">http://www.TravelToUkraine.org</A=
>,</DIV>
<DIV>A program of the U.S-Ukraine Foundation, Washington, D.C.</DIV>
<DIV>
<DIV>18. <FONT color=3D#000080>BUYUKRAINE.ORG</FONT> website, <A=20
href=3D"http://www.BuyUkraine.org">http://www.BuyUkraine.org</A>. </DIV>
<DIV>A program of the U.S.-Ukraine Foundation, Washington, D.C.=20
</DIV></DIV></DIV></DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
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<FONT size=3D4> <FONT =
color=3D#000080> </FONT></FONT><STRONG><FONT=20
color=3D#000080 size=3D4> PUBLISHER AND EDITOR - =
AUR<BR></FONT></STRONG>Mr. E.=20
Morgan Williams, Director, Government Affairs<BR>Washington Office,=20
SigmaBleyzer, The Bleyzer Foundation</DIV>
<DIV>Emerging Markets Private Equity Investment Group</DIV>
<DIV>President (Acting) and Chairman, Executive Committee of the</DIV>
<DIV>Board of Directors, Ukraine-U.S. Business Council <BR>P.O. Box =
2607,=20
Washington, D.C. 20013, Tel: 202 437 4707<BR><A=20
href=3D"mailto:mwilliams@SigmaBleyzer.com">mwilliams@SigmaBleyzer.com</A>=
; <A=20
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=3D=3D=3D<BR> <FONT=20
size=3D4> <STRONG><FONT color=3D#000080> </FONT><FONT=20
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UKRAINIAN PARLIAMENT APPOINTS DEPUTY SPEAKER, OMBUDSMAN, DEPUTY PREMIER. The Verkhovna Rada on February 8 approved Mykola Tomenko from the opposition Yuliya Tymoshenko Bloc as deputy parliament speaker. Tomenko was backed by 340 lawmakers. The Ukrainian parliament is headed by Oleksandr Moroz from the Socialist Party. Until Tomenko's appointment, Moroz had just one deputy -- Adam Martynyuk from the Communist Party. The same day, the Verkhovna Rada also reelected Nina Karpachova as its plenipotentiary for human rights (ombudsman) and approved Viktor Slauta as deputy prime minister for agrarian issues. Karpachova has been in the post of ombudsman since 1998. Slauta served as agrarian policy minister in Prime Minister Viktor Yanukovych's cabinet in 2004. JM
UKRAINIAN PRESIDENT ASSURES EUROPE OF SECURE ENERGY TRANSIT. President Viktor Yushchenko told German Chancellor Angela Merkel in Berlin on February 8 that Ukraine will continue to meet its obligations under the Energy Charter, including secure gas and oil transit to Europe, Ukrainian and international news agencies reported. "Ukraine understands its important role in the formation of Europe's energy-security policy and is conscious of its responsibility. I know that last year's story perhaps wasn't always presented [in the media] with complete objectivity, but I want to stress that Ukraine fully complies with its obligations under the Energy Charter," Yushchenko said at a joint news conference with Merkel. Speaking at a business forum in Berlin later the same day, Yushchenko said he has not authorized anyone to talk with Russia about the joint use of the Ukrainian gas-transportation network. Earlier this month Russian President Vladimir Putin revealed that Kyiv has made a "revolutionary" offer to unify both countries' gas-transportation systems in exchange for a share in Russia's gas-drilling sector. JM
Belarusian President Alyaksandr Lukashenka is famous among state leaders for his idiosyncratic pronouncements and verbal meltdowns. Many of his sayings -- like "I will not lead my nation after the civilized world" -- have earned a place in the pages of post-Soviet political folklore. Hardly one among them can be commended for its wisdom or wit. But many are inadvertently funny because of their bizarreness, silliness, or even unintended obscenity.
Some of them, taken at face value, are terrifying -- such as the one in which Lukashenka, in a 1995 interview with Germany's "Handelsblatt" newspaper, praises Hitler's Third Reich as an example worthy of emulation for other nation builders.
"Not everything connected with Germany and a certain Adolf Hitler was bad," he said. "The German order had been formed throughout centuries. Under Hitler this formation reached its peak. This is what conforms to our understanding of a presidential republic and the role of a president in it."
"Handelsblatt" prudently opted to remove this passage from the published text of the interview. But Belarusian Radio twice broadcast the recorded conversation in its entirety, raising a cry of indignation in some domestic and international media for the extreme callousness of his remark.
Did Lukashenka really mean what he said? Did he want to build a fascist state in Belarus? Many journalists were quick to say yes. But another explanation, odd as it may seem, is more plausible: Lukashenka, wanting to please his interviewers, had thought it right to praise German "order." Through the simplicity of his soul or lack of exposure to the West, it may be the Belarusian president simply did not realize that Hitler's contributions to that "order" were beyond mention, in Germany and elsewhere.
Even more disturbing is the fact that Lukashenka afterward flatly denied ever making such a statement. The Belarusian president does not like to admit his mistakes. This denial, along with the Hitler quote, was recalled by Russia's Channel One television in a January program portraying Lukashenka as a brazen liar.
Another odd move came in November 2006. While giving an interview to a group of Ukrainian journalists in Minsk, Lukashenka suddenly floated the idea of creating a Ukraine-Belarus union -- adding that such a project had a better chance of success than the languishing Russia-Belarus union state.
Lukashenka clearly sensed trouble ahead. Anticipating problems with energy deliveries from Russia, he was eager to send a signal to Ukrainian President Viktor Yushchenko -- himself no stranger to the strong arm of Russian energy politics -- that it was time for the two of them to get together for a talk. Chances are, however, that the pro-Western Yushchenko was as stupefied by the proposal as the journalists in Minsk.
More recently, in a January interview with the German daily "Die Welt," Lukashenka suggested Belarus was ready to be an "eager pupil" of the West and that he personally envisioned his country someday following the model of Germany or Sweden. His comments appeared to be a fleeting overture to the West. A week later, meeting with Russian Communist Party leader Gennady Zyuganov, Lukashenka was back in traditional form -- pledging that Belarus will continue to serve as Russia's "outpost" in the West.
His most recent foreign interview, to the Reuters news agency, finds him not trying to make friends with anyone in particular. Neither Russia nor Europe are essential to Belarus's survival, he said in classically bullish mode.
The erratic nature of Lukashenka's public pronouncements defy literal interpretation. Building any hopes on his words is a senseless task. As long as Lukashenka eludes the pinch of an acute economic necessity, he'll stay in one place and won't lead his nation anywhere -- neither to Sweden, nor to Russia.
It is his narrow-mindedness, and not his shrewdness, that presents the biggest obstacle to easing Lukashenka onto a more democratic path. The president has a clear vision of his role in Belarus -- he is a provider who carefully attends to the concerns of the common people, and severely punishes those who do them harm. It is hard for him to envision a Belarus without Lukashenka. It is hard for him to envision a world in which other people feel differently.
The stagecraft behind Belarusian elections -- routinely criticized by observers -- is an exercise in simulated democracy that Lukashenka appears convinced is precisely what the people need. He drove this point home in comments following the March 2006 presidential vote handing him an unprecedented third term.
"How can a normal, reasonable, good, decent man -- I've told this to [election] observers -- say that this [election] process was undemocratic? We have made a festival out of this election," he said. "Do you know why I did this? [Because] polling stations were visited by my people, who some time ago supported me so stunningly and unexpectedly, when I was [a novice in politics], you remember, 10 years ago. And I will do everything possible to make more festivals of this sort for my people."
Lukashenka may be right when he asserts that for "his people" nationwide elections and referendums have so far been "festivals." On election day, many polling stations offer vodka, sausages, and other commodities at discounted prices, and most people rightfully enjoy taking advantage of such opportunities. As long as such discount prices are possible, the festival may go on.
But some of the perks -- including substantial oil and gas subsidies -- have already begun to dry up. The festival atmosphere may come to a sudden end once Belarusians are made to pay in full for everything they now buy at discount rates.
The reality is that Lukashenka has failed to build a self-sustaining economy or functional state institutions. Belarus under his rule looks like a failed state. Lukashenka's bizarre public boast that he falsified the 2006 presidential vote in order to give the opposition at least some of the votes only underscores his profound political failure.
"Yes, we falsified the last election. I have already told the Westerners about this," he told Ukrainian journalists in Minsk on November 23. "As much as 93.5 percent voted for President Lukashenka. But they say this is not a European figure. So we made it 86 [percent]. That was true. If we were to start recounting ballots now, I don't know what we would do with them. The Europeans told us before the election that if there were approximately European figures in the election, they would recognize our election. [So] we tried to make European figures."
Making election figures look more "European" appears to be an easy task for Lukashenka. Making Belarus look more "European" seems to be totally beyond his ability.
"RFE/RL Belarus & Ukraine Report" is compiled on the basis of a variety of sources.
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