aaus-list @ ukrainianstudies.org -- [aaus-list] Fwd: Ukraine Today -- 28.05.2001

[Robert De Lossa <rdelossa@fas.harvard.edu>]

[resent with permission]


   UKRAINE TODAY
   Main weekly events from Infobank News Agency


   28 May 2001



   * KUCHMA SIGNS UKRAINE'S NEW CRIMINAL CODE INTO LAW
   * UKRAINIAN GOVERNMENT TO NATIONALIZE SOLD 35 PERCENT STAKE IN
     "ODESAOBLENERHO"
   * PRESIDENT NOMINATES ANATOLIY KINAKH FOR POST OF PRIME MINISTER
   * CENTRAL ELECTION COMMISSION REFUSES TO REGISTER REFERENDUM QUESTIONS
     PROPOSED BY OPPOSITION
   * INTERNATIONAL CONSORTIUM TO ADVISE ON UKRTELEKOM SALE
   * VERKHOVNA RADA WILL DEBATE CANDIDATE FOR PREMIER, ANATOLY KINAKH, ON
     MAY 29
   * PARLIAMENT REJECTS LAND CODE
   * GENERAL PROSECUTOR'S OFFICE INSTIGATE A CRIMINAL CASE AGAINST KYIV
     PECHERSK RAYON COURT CHAIRMAN ZAMKOVENKO AND SEARCH HIS OFFICE
   * "PIVDENNY" DESIGN BUREAU DEVELOPS NEW MODELS OF BOOSTER ROCKETS






   KUCHMA SIGNS UKRAINE'S NEW CRIMINAL CODE INTO LAW

   KYIV. The President of Ukraine signed the country's new Criminal Code
   into law. Parliament enacted the law on April 5. The new Code comes
   into effect on June 1, 2001, presidential administration
   representative told Infobank.

   The previous Code was enacted on April 1, 1961. The new Criminal Code,
   among other things, introduced a life sentence for grave and extremely
   grave crimes, but this provision does not apply to persons under 18
   years of age or over 65 years of age, as well as to women who were
   pregnant at the moment of committing a crime or at the moment of a
   court verdict. The new Criminal Code reduces prison terms for
   practically all kinds of crimes, imposes fines for petty crimes, as
   well as introduces many new kinds of economic crimes.


   UKRAINIAN GOVERNMENT TO NATIONALIZE SOLD 35 PERCENT STAKE IN
   "ODESAOBLENERHO"

   KYIV. The Ukrainian government will intend to nationalize the 35
   percent interest in the Odesaoblenerho electricity utility company
   which has been sold in an auction earlier, by paying UAH 23 million to
   the buyer. According to Vice Prime Minister Oleh Dubyna, the
   government's decision has been triggered by the situation
   Odesaoblenerho found itself in, bin.com.ua reports.

   According to O. Dubyna, the government cannot stand aloof and wants to
   secure an efficient use of UAH 85 million received by Odesaoblenerho
   from the wholesale electricity market for the modernization of its
   power grids. In addition, the government ordered to find the registrar
   of Odesaoblenerho stock and to identify its present shareholders. The
   government may again put up the stake for an auction after the
   nationalization - when the company's power grids are repaired in the
   wake of a major disaster which hit it in winter.

   As Infobank has reported earlier, on September 18, 1998 Ukraine's
   state property fund announced that Virginia Islands (UK)-registered FS
   Trading Ltd. LLC is winner of a tender to buy a 35-percent stake in
   OdesaOblEnerho energy company. SPF has signed a buy-sell contract with
   this company.

   On August 20, 1998, the Supreme Arbitration Court acknowledged the
   claim by FS Trading Ltd. to render invalid the results of the
   commercial tender for the sale of a 35-percent stake in the
   OdesaOblEnerho where the winner was Cyprus-based Overcom consortium.
   FS Trading Ltd. and Vostion Group company were also-rans in the
   tender. FS Trading Ltd. appealed the tender committee decision in
   court insisting that it offered a higher price for the OdesaOblEnerho
   stake. Under the terms of the non-commercial tender, the winner will
   be requested to replenish the company's cash flow with a UAH 10
   million injection within 60 days of the purchase and invest UAH 49
   million for the modernization of electricity grids within 5 years of
   the purchase. In addition, the winner will have to invest UAH 700,000
   to maintain the company's social infrastructure and to finance a UAH
   500,000 project to protect environment within 2 years of the purchase.

   OdesaOblEnerho's statutory fund amounts to UAH 52.124 million. Each
   share is worth UAH 10. The state has retained a 25% + 1 share stake
   for 5 years. The company's largest shareholders include Vostion Group
   L.L.C., FS Trading Limited, Prize Financial Group L.L.C.


   PRESIDENT NOMINATES ANATOLIY KINAKH FOR POST OF PRIME MINISTER

   KANIV. According to TV Novyi Channel, during his visit to the city of
   Kaniv, Cherkasy oblast, Ukrainian President Leonid Kuchma said that he
   would nominate the candidacy of Anatoliy Kinakh for the post of Prime
   Minister. In order for Mr. Kinakh to become head of the Ukrainian
   government, his candidacy must be approved by parliament.

   As Infobank has reported earlier, on the heels of his consultations
   with Verkhovna Rada caucuses on May 17-18, President Kuchma said he
   would nominate for premier's position either the head of the Ukrainian
   Union of Entrepreneurs and Industrialists, Anatoly Kinakh, or the
   leader of the Labor Ukraine Party Serhiy Tyhypko.


   CENTRAL ELECTION COMMISSION REFUSES TO REGISTER REFERENDUM QUESTIONS
   PROPOSED BY OPPOSITION

   KYIV. On May 22, the Central Election Commission refused to register
   for referendum the questions proposed by an initiative group from
   Cherkasy. The questions related to President Kuchma's resignation and
   the reform of government. According to the for-ua.com report, CEC
   said, explaining its refusal, that such questions cannot be put to a
   referendum.

   In addition, CEC refused to register the Cherkasy-based initiative
   group, saying the registration application documents are not valid. In
   particular, CEC maintains, the registration of participants at the
   meeting was carried out during the meeting itself, not before it; 16
   persons were registered twice; two group members had not reached 18
   years of age and could not take part in such a meeting. The Central
   Election Commission also found other minor faults in the group
   documents.

   As Infobank has reported earlier, the first meeting of Leonid Kuchma
   opponents wishing to call a referendum to impeach the incumbent
   president was held in Kyiv on May 3. The meeting approved two
   referendum's questions - on impeaching L. Kuchma and on changing the
   system of power and redistribution of checks and balances among
   president, parliament and government. Same day, the application to
   hold a referendum was sent to the Central Election Commission. The
   first question to be put to the referendum runs like this: Do you
   agree that Leonid Kuchma has to take the blame for what happened to
   Ukraine and its people during Kuchma's rule - catastrophic downfall in
   the economy, extreme deterioration of life standards, growth of crime
   and corruption, Ukraine's worsened international image, large-scale
   violations of human rights, etc. - and that L. Kuchma has to repent,
   voluntarily resign from office and announce his resignation pursuant
   to Articles 108 and 109 of the Constitution? The second question of
   the referendum runs like this: Do you agree that Leonid Kuchma's
   regime has led to the establishment of a totalitarian rule in Ukraine
   and that it is necessary, following L. Kuchma's resignation, to
   establish a European model of the power structure enabling the people
   to form the government and control its activities theough its elected
   representatives?


   INTERNATIONAL CONSORTIUM TO ADVISE ON UKRTELEKOM SALE

   KYIV. The Cabinet of ministers of Ukraine, according to the results of
   the tender for a shares packet of a major telecommunication services
   operator, joint stock company Ukrtelecom, have chosen a consortium of
   three companies -- Squire, Sander & Dempsey L.L.P., Millen Financial
   Services, and BNP Paribas. First vice-premier Yuriy Yekhanurov told at
   a press-conference on May 23, without giving any further detail.

   Seven companies have taken part in the tender to advise on Ukrtelecom
   privatization -- Commerzbank AG, Raiffeisen Investment AG, ING Bank
   N.V., Meinl Bank, international legal company B.I.M., Cs First Boston
   (Europe) Ltd., and a consortium of three companies: Millen Financial
   Services, BNP Paribas and Squire, Sanders & Dempsey.

   According to information in the press, the national communications
   operator Ukrtelecom collected UAH 289 million of revenue in 2000, when
   in 1999 the company incurred UAH 42 million losses. According to the
   overall results of the year 2000, its revenue equals UAH 2.9 billion,
   with the cost price of the products dropping to UAH 1.87 billion.


   VERKHOVNA RADA WILL DEBATE CANDIDATE FOR PREMIER, ANATOLY KINAKH, ON
   MAY 29

   KYIV. On May 24, on Speaker Ivan Pliushch's proposal, Ukraine's
   parliament took a decision to debate the appointment of Anatoly Kinakh
   as head of government on May 29. The motion was supported by 310
   lawmakers, against the required minimum of 226.


   PARLIAMENT REJECTS LAND CODE

   KYIV. On May 24, Verkhovna Rada failed to enact the Land Code in the
   second reading, with a mere 160 lawmakers voting to support it,
   against the required minimum of 226 votes.

   According to Korrespondent.net, the Communists, the largest caucus in
   the Ukrainian parliament, were strongly opposed to the Land Code.
   Prior to voting, they encircled the rostrum, preventing VR agrarian
   committee head Kateryna Vashchuk to tell the deputies about the
   proposed changes. The Communists protest against one of the Code's
   provisions allowing the sale of land.

   Parliament approved the Land Code draft in first reading in June of
   2000, with numerous changes having been made in the text since then.
   Under the draft, the sale/purchase of arable land will be banned till
   Jan.1, 2003, but land owners will be allowed to bequeath their land.
   The size of a privately own land plot is limited by 100 hectares in
   the draft Land Code. The draft also banns to use land till Jan.1, 2005
   as statutory fund payment.

   Under the draft, non-resident legal and natural persons cannot own
   arable land, but can own land on which their enterprises are located.


   GENERAL PROSECUTOR'S OFFICE INSTIGATE A CRIMINAL CASE AGAINST KYIV
   PECHERSK RAYON COURT CHAIRMAN ZAMKOVENKO AND SEARCH HIS OFFICE

   KYIV. On May 24 investigators of the General prosecutor's office of
   Ukraine searched the office of Kyiv Pechersk rayon court chairman
   Nikolay Zamkovenko. According to the press-group of Kyiv prosecutor's
   office, the search was conducted on the grounds of the criminal case
   launched against Zamkovenko on May 23 in line with Article 167 of the
   Criminal Code of Ukraine -- criminal negligence.

   According to Inter TV-channel, on May 23 the General Prosecutor's
   Office requested that Nikolai Zamkovenko submit for analysis the
   documentation of four criminal cases he investigated in the period of
   1998 - 1999. Nikolai Zamkovenko produced only one case, explaining in
   writing that he will submit the remaining cases after they are brought
   into order. His refusal to submit the documentation of these cases
   brought about the instigation of the criminal case and the search with
   the seizure of the criminal cases he refused to produce.

   Ukraine's Prosecutor General Mykhail Potebenko on May 25 declined to
   comment on the instigation of the criminal case against Nikolai
   Zamkovenko, since at the time the criminal case was instigated he was
   on a business trip, and this decision was made by Deputy Prosecutor
   General Victor Kudriavtsev. As Infobank previously reported, Nikolai
   Zamkovenko was the one to revoke the sanction for the arrest of
   ex-vice-premier Yulia Tymoshenko, against whom the Prosecutor
   General's office is pressing charges of a series of financial
   offences.


   "PIVDENNY" DESIGN BUREAU DEVELOPS NEW MODELS OF BOOSTER ROCKETS

   DNIPROPETROVSK. The state-run Pivdenny design bureau have started to
   develop a series of new models of booster rockets titled Mayak
   (Beacon), korrespondent.net reports. New rockets are developed within
   the framework of the National space program for 2001-2006.

   New rockets will mount engines developed by Ukrainian and Russian
   engineers. Engines for Mayak rockets will be made at the Pivdenny
   Engineering Plant. The rockets will have various payloads. For
   instance, Mayak-12 will take into 500-km high orbit objects weighing
   up to 1.7 tons, while Mayak-23 will be able to carry up to 3-ton
   payload.

   The first launchings of Mayak rockers may take place in 2005-2006. At
   present, experts are assessing technical parameters of launching pads
   for new missiles.




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