aaus-list @ ukrainianstudies.org -- [aaus-list] Fwd: Ukraine Today -- 15.10.2001

[Robert De Lossa <radelo@earthlink.net>]

[ from "Yaroslav Davydovsky" <sda@ukrainet.lviv.ua> --RD]

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   UKRAINE TODAY
   Main weekly events from Infobank News Agency


   15 October 2001



   * UKRAINE WILL NOT STAND ALOOF IN FIGHTING GLOBAL TERRORISM, PLEDGING
     SUPPORT FOR SUCH FIGHT, SAYS PRESIDENT KUCHMA
   * PRESIDENT KUCHMA'S ADDRESS TO PARLIAMENT AND GOVERNMENT ON REFORM IN
     PENSION SYSTEM
   * LEADERS OF 5 PARTIES INITIAL AGREEMENT ON CREATING OUR UKRAINE BLOC
   * COOPERATION WITH INTERNATIONAL FINANCIAL INSTITUTIONS MUST REFLECT
     UKRAINE'S NATIONAL INTERESTS, SAYS PM KINAKH
   * GOVERNMENT APPROVES CONCEPT OF INDUSTRIAL POLICY
   * GOVERNMENT APPROVES MEASURES AIMED AT STIMULATING EXPORT
   * PRESIDENT KUCHMA SIGNS LAW ON TAXATION OF OIL/GAS EXPLORATION COSTS
   * TU-154 AIRPLANE WAS HIT BY MISSILE, SAYS RUSSIAN OFFICIAL
     INVESTIGATION COMMISSION
   * RUSSIA'S TU-154 WAS SHOT DOWN BY STRAY UKRAINIAN MISSILE






   UKRAINE WILL NOT STAND ALOOF IN FIGHTING GLOBAL TERRORISM, PLEDGING
   SUPPORT FOR SUCH FIGHT, SAYS PRESIDENT KUCHMA

   KYIV. Ukraine will no stand aloof in the fight against global
   terrorism and is ready to support this fight, Korrespondent.net quotes
   Ukrainian President Kuchma as saying in the wake of yesterday's air
   strikes by the united States and Great Britain against Afghanistan.

   President Kuchma confirmed that Ukraine will stick top its earlier
   decision not to take a direct part in military operations, but
   stressed that Ukraine will be ready to give military support to
   Uzbekistan, one of GUUAM member states, in case of Afghanistan's
   aggression. According to Kuchma, Ukraine has already supplied weapons
   to Uzbekistan and is ready to resume them, if need be.

   Leonid Kuchma declared there were manifestations of terrorism on
   Ukraine's territory, saying illegal money laundered in Ukraine is used
   to finance terrorists.

   According to CNN report, the United States and Great Britain launched
   attacks on at least three cities in Afghanistan on October 7 in
   retaliation for the terrorist attacks on New York and Washington on
   September 11, U.S. President Bush said.

   Northern Alliance commanders in Afghanistan said they were hearing of
   as many as seven targeted areas in the country, some as far-flung as
   Herat Aria in the northwest and Maraz-el Sharif in the north.

   The first strikes occurred about 8:45 p.m. Sunday (12:45 p.m. EDT). A
   source in Kandahar told CNN a second and heavier wave of strikes hit
   that city about an hour later.

   The raids were expected to last well into the early morning hours in
   Afghanistan. Pentagon officials told CNN the attacks would include
   strikes by U.S.-based B-2 bombers, and B-52 and B-1 bombers flying
   from the British base at Diego Garcia, in the Indian Ocean.


   PRESIDENT KUCHMA'S ADDRESS TO PARLIAMENT AND GOVERNMENT ON REFORM IN
   PENSION SYSTEM

   KYIV. On October 8, President Leonid Kuchma addressed the Ukrainian
   parliament and government on the reform in the country's pension
   system. He urged them to step up the implementation of the reform and
   ensure the transition from the old solidarity system to a multi-level
   pension system.

   President Kuchma stressed in his address that any further delays in
   reforming the pension system would have negative consequences for the
   state and Ukrainians, retaining the existing very low level of
   pensions. Any efforts to raise pensions to 50 -60 percent of salaries
   by increasing deductions from the wage fund to 60-70 percent will
   become an unbearable millstone for the economy. The only option left
   is to create a multi-level pension system, Kuchma said. As the
   president stressed, the existing solidarity pension system is socially
   unjust primarily with respect to the low-income group as the size of
   pensions is very low and does not depend on salaries and seniority.
   Simultaneously, very high pension fund payments by entities are an
   additional burden for the Ukrainian economy.

   Leonid Kuchma said that the proposed multi-level pension system seems
   to be the best for Ukraine. The pension reform should be carried out
   in three directions, reforming the solidarity system, creating the
   mandatory saving system and the voluntary saving system. In the
   opinion of Leonid Kuchma, the reformed pension system could become a
   powerful source of long-term investments in the Ukrainian economy,
   reaching up to UAH 25 billion in 10 years. This will promote
   employment, generate more revenue for the Ukrainians, and consolidate
   the financial basis of the pension system, and make it possible to
   considerably raise the size of pensions. .


   LEADERS OF 5 PARTIES INITIAL AGREEMENT ON CREATING OUR UKRAINE BLOC

   KYIV. On October 8 leaders of 5 Ukrainian political parties initialed
   an agreement on the creation of the election bloc Our Ukraine, which
   will be headed by ex-Prime Minister Viktor Yushchenko. The bloc will
   be made up of the People's Rukh of Ukraine, the Ukrainian People's
   Rukh, the Reforms and Order Party, the Liberal Party of Ukraine and
   the Christian People's Union.

   Korrespondet.net quotes Yuriy Kostenko, leader of the Ukrainian
   People's Rukh, as saying that on October 8 the bloc coordination
   council drafted a final version of the agreement but it has not been
   decided yet when the agreement will be signed.


   COOPERATION WITH INTERNATIONAL FINANCIAL INSTITUTIONS MUST REFLECT
   UKRAINE'S NATIONAL INTERESTS, SAYS PM KINAKH

   KYIV. Ukraine should cooperate with international financial
   institutions, including the International Monetary Fund and World
   Bank, but the terms of such cooperation must reflect the country's
   national interests in the first place, Ukrainian Prime Minister,
   Anatoliy Kinakh, said in an interview with the Segodnia newspaper,
   which was published on October 9.

   According to Mr. Kinakh, for a number of years the Ukrainian
   government did not understand that cooperation with the IMF must not
   be a way of achieving its ends: signing an agreement under any terms
   and then rejoicing at the funds made available. Therefore, the Cabinet
   has somewhat changed its work with international financial
   institutions.

   The Ukrainian Prime Minister pointed out that he had had tough
   discussions over this issue with representatives of international
   financial institutions, but he was very glad to hear Luca Barbone,
   World Bank Regional Director in Ukraine and Belarus, say that Ukraine
   and the World Bank have relations that are based on equality of
   rights. Mr. Kinakh also said that the loans Ukraine has received from
   international financial institutions are small in comparison with the
   scope of the country's economy but they show that private strategic
   investors, whose resources Ukraine needs more than loans, can do
   business with Ukraine too.


   GOVERNMENT APPROVES CONCEPT OF INDUSTRIAL POLICY

   KYIV. At its sitting on October 10 the Cabinet of Ministers of Ukraine
   approved the concept of the state industrial policy in the market
   environment, Vasyl Hureyev, the Industrial Policy Minister, told
   reporters.

   The concept, which envisages the development of society through
   industrial reform and defines the mechanism of industrial development,
   provides for raising investments in the Ukrainian economy and a switch
   from quantitative to qualitative privatization. It also includes a
   mechanism of market-oriented self-organization of state-run companies.

   The Minister also said that within 10 days experts of the Ministries
   of Economy, Finance and Industrial Policy must improve those items of
   the concept that have to do with promotion of Ukrainian products on
   international markets, Ukraine's joining international trade
   organizations, protection of domestic market, making investments in
   Ukrainian companies, depreciation policy and the investment policy of
   the banking system.


   GOVERNMENT APPROVES MEASURES AIMED AT STIMULATING EXPORT

   KYIV. At its sitting on October 1O the Cabinet of Ministers of Ukraine
   approved a set of measures to be taken to stimulate the export of
   Ukrainian production. The measures are included in the State Program
   of Ukraine's economic and social development.

   According to the government press service, the program provides for an
   increase in information resources, forming an infrastructure for
   Ukrainian manufacturers to enter new international markets, an
   increase in the share of hi-tech products in the country's total
   export and creating a network of trade representative offices,
   exhibition centers and other structures abroad.

   If carried out, the program is expected to ensure an annual increase
   in the export of products and services by more than UAH 2,571,000,000.
   The average annual profits from export are expected to rise by over
   UAH 627 million.


   PRESIDENT KUCHMA SIGNS LAW ON TAXATION OF OIL/GAS EXPLORATION COSTS

   KYIV. On October 11, President Kuchma signed the law which parliament
   had approved on September 20 on changes to the law on the corporate
   income tax initiated by Ivan Diyak. Under the changes, expenditure for
   surveying for and developing oil and gas fields can be included in
   gross expenditure. Hitherto, this expenditure was attributed to a
   separate expenditure item and were subject to depreciation.

   The law also defines rates of depreciation for bores used in
   developing oil and gas fields and included in the balance of a tax
   payer before this law comes into effect. The rate of depreciation is
   to be expressed in percent to their initial value, beginning from the
   rate for the first year of depreciation. Under the law, in the first
   four years of operating a bore, 54% of its value is to be depreciated.
   By contrast, the existing method allows only for under 20 percent of
   the initial value of a bore to be depreciated in the same period.
   Verkhovna Rada experts maintain that, given this method for
   calculating depreciation is used, the state will have to refund to oil
   and gas extracting companies considerable sums of earlier depreciation
   payments.


   TU-154 AIRPLANE WAS HIT BY MISSILE, SAYS RUSSIAN OFFICIAL
   INVESTIGATION COMMISSION

   SOCHI (RUSSIA). The Tu-154 airplane was hit by a missile and crashed
   on its way from Tel-Aviv to Novosibirsk (Russia); the plane had been
   following the international air route to which no restrictions,
   including temporary, applied, the Russian information agency Novosti
   quotes Vladimir Rushailo, Secretary of Russia's Security Council, as
   saying during the presentation of preliminary conclusions drawn by the
   state investigation commission which he heads.

   At the same time the US has said it cannot confirm its claim made
   earlier that the Russian airplane was hit by the Ukrainian missile
   ZRK-200C. A source in the Ukrainian Foreign Affairs Ministry told
   Defense-Express agency that the USA had made an official statement
   about it to Ukraine's Ambassador to the US, following his inquiry sent
   to the Department of State.

   The US official statement points out that the US has photographic
   reconnaissance data showing that on October 4 the Ukrainian missiles
   ZRK-200C were fired at 9.20 and 9.41 GMT from the Crimean peninsula;
   however, "the US cannot confirm that the 200-C missile collided with
   Tu-154".

   As Infobank has reported earlier, the Russian passenger plane TU-154
   of Sybir company, which crashed into the Black Sea on October 4, was
   allegedly shot down by a missile mistakenly launched by Ukraine's air
   defense forces during a shooting practice, Japanese Kiodo Tsusin
   agency quoted the US administration October 4.

   At the same time, a source at Ukraine's Defense Ministry told Forum
   internet publication that technical characteristics of systems used
   during a shooting practice on the territory of the 31st research
   centre of Russia's Black Sea fleet near the Opuk cape (the Crimea)
   rule out the possibility of the plane having been shot down during the
   shooting practice.

   In turn, the American television company CBS quoted the US
   Administration as saying that the plane was "allegedly shot down by a
   ground-to-air missile launched from the territory of the Crimean
   peninsula." So far, no proof of such preliminary conclusions has been
   presented. However, "a launched missile leaves a long smoke trail
   which can be detected by spy satellites, and such missiles emit a
   unique electronic signal which can be detected by radio-electronic
   reconnaissance stations," the CBS reported.

   According to a RIA Novosti correspondent in Simferopol, on October 4
   Ukrainian air defense forces were to start shooting practice at the
   Kerch-based firing range of Opuk.

   At the press conference on October 8, Ukraine's Defense Ministry
   officials showed evidence proving that the country's Armed Forces had
   no part in the accident involving Russia's TU-154 plane on October 4.
   The evidence included maps of military exercises plotting trajectories
   of Ukrainian missiles launched the same day. The evidence was
   submitted by the Commander of Ukraine's Air Defense Troops Volodymyr
   Tkachov.

   According to him, of 23 missiles launched in the exercise, 21 hit
   their targets, one self-destroyed itself, and one landed by parachute.
   All the missiles were in good technical condition, he stressed. He
   also demonstrated a detailed footage on all the stages of the
   exercise. The press conference was attended by members of the
   diplomatic corps.

   In line with the evidence, at 12.41, the time when C-200 and C-300
   missiles were launched, both planes, Armenia's AN-24 and Russia's
   TU-154, were at the distance of 220 and 270 km from the missile sites.
   C-300 hit its designated target 1.2 minutes after firing. C-200 fell
   into the sea at 12.42 755-80 km off the coast. TU-154 was picked up by
   the radar at 12.44. There was nothing on the radar screens between
   12.42 and 12.44. Videotaped tracking of C-200 revealed that its
   engines were stopped by command from the control center as soon as
   C-300 hit its target.

   Volodymyr Tkachov said that C-200 and C-300 are equipped with
   half-active guidance systems requiring target designation by radar
   beams. Meanwhile, TU-154 was far off the radar target designation
   range. As stressed by Gen. Tkachov, in case of losing its target,
   C-200 continues to search for it for a short time and then
   self-liquidates itself. In addition, at the time of the accident the
   radar was not operating.

   V. Tkachov could not give C-200 maximum range in uncontrolled flight
   mode, but said the missile was on a downward course and could not have
   flown farther than 80 km. According to Tkachov, C-200 can fly as far
   as 245-250 km only when flight conditions are ideal, i.e. when the
   target is on a collision course with the missile and when the missile
   receives guidance from a land radar.


   RUSSIA'S TU-154 WAS SHOT DOWN BY STRAY UKRAINIAN MISSILE

   SOCHI. The fatal accident involving Russia's TU-154 plane over the
   Black Sea on October 4 was due to "a failure in the anti-aircraft
   missile of Ukraine's air defenses," RBK news agency quotes the
   Secretary of the National Defense and Security Council of Ukraine
   Yevhen Marchuk as saying on October 12.

   According to Mr. Marchuk, this conclusion has also been confirmed by
   Ukrainian Armed Forces experts who took part in investigating the
   causes of the crash. "It is painful for me, as a Ukrainian citizen, to
   speak on the issue but there is ample evidence of this," Ye. Marchuk
   added.

   As Infobank has reported earlier, the Tu-154 airplane was hit by a
   missile and crashed on its way from Tel-Aviv to Novosibirsk (Russia);
   the plane had been following the international air route to which no
   restrictions, including temporary, applied, the Russian information
   agency Novosti quoted Vladimir Rushailo, Secretary of Russia's
   Security Council, as saying during the presentation of preliminary
   conclusions drawn by the state investigation commission which he
   heads.

   At the same time the US has said it cannot confirm its claim made
   earlier that the Russian airplane was hit by the Ukrainian missile
   ZRK-200C. A source in the Ukrainian Foreign Affairs Ministry told
   Defense-Express agency that the USA had made an official statement
   about it to Ukraine's Ambassador to the US, following his inquiry sent
   to the Department of State.

   The US official statement points out that the US has photographic
   reconnaissance data showing that on October 4 the Ukrainian missiles
   ZRK-200C were fired at 9.20 and 9.41 GMT from the Crimean peninsula;
   however, "the US cannot confirm that the 200-C missile collided with
   Tu-154".

   As Infobank has reported earlier, the Russian passenger plane TU-154
   of Sybir company, which crashed into the Black Sea on October 4, was
   allegedly shot down by a missile mistakenly launched by Ukraine's air
   defense forces during a shooting practice, Japanese Kiodo Tsusin
   agency quoted the US administration October 4.




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