aaus-list @ ukrainianstudies.org -- [aaus-list] Fwd: Ukraine Today -- 04.02.2002

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

[from "Yaroslav Davydovsky  {20122}" <sda@ukrainet.lviv.ua>]

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   UKRAINE TODAY
   Main weekly events from Infobank News Agency


   4 February 2002



   * UKRAINE'S 2001 BUDGET IMPLEMENTED 91.5 PERCENT
   * UKRAINE MIGHT AGREE TO RESUME CHICKEN DRUMSTICKS IMPORT ON 
CERTAIN CONDITIONS
   * YULIA TYMOSHENKO GETS INTO CAR ACCIDENT AS COURT BANS HER FROM 
LEAVING KYIV
   * INVESTMENTS IN FIXED ASSETS IN UKRAINE RISE 17.2% IN 2001, 
ACCORDING TO STATISTICS COMMITTEE
   * CEC REGISTERS 2,765 CANDIDATES FOR PARLIAMENT ON PARTY LISTS, 1,160
     CANDIDATES RUNNING IN SINGLE-MANDATE CONSTITUENCIES
   * PRESIDENT SIGNS DECREE ON FIGHTING PRODUCTION OF PIRATED CDs
   * KURATCHENKO REPORTS UAH 1 BILLION SHORTFALL IN STATE RESERVE 
FUNDS INVENTORY
   * UKRTELECOM'S SELL-OFF IN 2002 MIGHT BE OFF, RYABCHENKO SAYS
   * RUSSIA RAISES PRICES FOR NUCLEAR FUEL FOR UKRAINE, FOR 
RE-IMPORTING SPENT FUEL
   * EBRD AGREES TO SOFTEN TERMS OF ITS LOAN TO COMPLETE RIVNE AND 
KHMELNYTSKY NUCLEAR POWER PLANTS






   UKRAINE'S 2001 BUDGET IMPLEMENTED 91.5 PERCENT

   KYIV. According to preliminary estimates, the state budget has been
   implemented by 91.5 percent in 2001, State Treasury Head Petro Petrashko
   told journalists.

   According to him, only UAH 38.405 billion in revenue has been collected,
   or 85.5% of the 2001 target, in the first place, due to a UAH 3.569
   billion shortfall in receipts from the privatization of state property.
   The budget expenditure has been fulfilled by 91.7 %.


   UKRAINE MIGHT AGREE TO RESUME CHICKEN DRUMSTICKS IMPORT ON CERTAIN 
CONDITIONS

   KYIV. The State Veterinary Inspection of Ukraine is ready to allow
   poultry meat import from the United States if producers confirm that no
   antibiotics had been used in production and no preservatives in meat
   processing, head of the department of Veterinary Medicine Petro Verbytsky
   said, speaking in a press conference on January 28 held at the Ministry
   for Agricultural Policy.

   According to Mr. Verbytsky, the State Department for Veterinary Medicine
   imposed a ban on chicken drumsticks imported from the US because American
   producers allegedly added antibiotics in food and processed meat with
   trinatriumphosphate which is a kind of a preservative. Both are not
   allowed by the Ukrainian law. By contrast, the US law allows to use
   antibiotics and treat meat with disinfectants. Petro Verbytsky emphasized
   that the ban is in no way linked with the US sanctions against pirate
   production of compact discs in Ukraine.

   As Infobank has reported earlier, as of January 1, 2002, the Ministry for
   Agrarian Policy of Ukraine imposed a ban on the import of poultry meat
   from the United States.

   Later, the president of the US Council for Export of Poultry Meat and
   Eggs, USAPEEC, Jim Sumner said that the United States believe the ban by
   Ukraine to import American poultry meat is not just, because the reasons
   for which the Ukrainian veterinary service imposed its ban were not
   consistent. He stressed that the US poultry meat producers operate in
   strict accordance with the veterinary laws and Hazard Analysis in Critical
   Control Points procedure, officially accepted in the WTO as a standard
   food safety system.

   According to Mr. Sumner, the quality of poultry meat is checked by 7.5
   thousand veterinary inspectors on all production farms and plants. Regular
   testing does not confirm the presence of antibiotics in meat. He also
   criticized the Ukrainian statement saying that Ukrainian farmers can meet
   local demand in poultry meat.


   YULIA TYMOSHENKO GETS INTO CAR ACCIDENT AS COURT BANS HER FROM 
LEAVING   KYIV

   KYIV. In the morning on January 29 Yulia Tymoshenko, a former Ukrainian
   Vice Prime Minister and now leader of the Batkivshchyna party, had an
   automobile accident, following which she was taken to the Feofania
   hospital with chest injuries and, probably, a brain concussion.

   According to preliminary information, the car accident happened in Kyiv's
   Park Alley, off the Dnipro quay. Oleksandr Zarubytskyi, chairman of
   Ukrainian Internal Ministry's Public Relations Department, told reporters
   the police believe that the driver of Mrs. Tymoshenko's Mercedez violated
   the rules, which brought the automobile to a collision with a Zhiguli
   car driven by a 32-year-old man, who is now in hospital, his preliminary
   diagnosis being brain concussion.

   On the same day, Kyiv's appellate court, where Yulia Tymoshenko was
   heading when the accident occurred, satisfied, in the absence of the
   appellee and her lawyer, Prosecutor General's representation and rendered
   unlawful the ruling by Kyiv's Pechersk rayon court on Mrs. Tymoshenko's
   deputy's immunity. So the Batkivshchyna party leader again falls under a
   written undertaking not to leave Kyiv, and the law-enforcement agencies
   can now conduct an investigation against her again.


   INVESTMENTS IN FIXED ASSETS IN UKRAINE RISE 17.2% IN 2001, ACCORDING TO
   STATISTICS COMMITTEE

   KYIV. Investments in fixed assets in Ukraine last year rose 17.2% in
   comparison with 2000, amounting to UAH 26,743,700,000, finport.net quotes
   the State Statistics Committee.

   According to the Committee, investments in fixed assets increased in
   almost every Ukrainian oblast, except Poltava and Zaporizhia oblasts and
   the city of Simferopol. At the same time, a high level of capital
   investments has been maintained in the past two years in the city of Kyiv,
   as well as in Sumy, Odesa, Zakarpatska, Vinnytsia, Kherson,
   Ivano-Frankivsk and Kharkiv oblasts. More than a half of the investments
   were utilized in the regions that are developed better than others: Kyiv
   City, Donetsk, Dnipropetrovsk, Odesa and Kharkiv oblasts.

   A considerable part of the investments in fixed assets (44.7%) was
   utilized by companies owned by groups of employees; municipal companies
   used 7.3% of the investments. At the same time only 6.3% of the
   investments were utilized in the private sector; of this figure, 80.7% was
   the population's resources used to build their own homes. International
   organizations and foreign legal entities utilized only 1% of all the
   capital investments in Ukraine. Companies' and organizations' own
   resources remained the main source of investments in fixed assets; they
   amounted to 66.3% of all the capital investments.

   The best part of the total volume of investments in fixed assets (23%) was
   used in the development of transport, communication and postal companies.
   Large sums of investments were utilized in the processing and mining
   industries (19.8% and 15% respectively), and by companies generating and
   distributing electricity, gas and water (9%). A lot of investments in
   fixed assets (15.1%) were used in the development of such operations as
   transactions with real estate, leasing and services to legal entities.
   14.4% of investments were used in housing.


   CEC REGISTERS 2,765 CANDIDATES FOR PARLIAMENT ON PARTY LISTS, 1,160
   CANDIDATES RUNNING IN SINGLE-MANDATE CONSTITUENCIES

   KYIV. Ukraine's central election committee (CEC) has registered 2,765
   candidates for a seat in parliament running on the party ticket (and
   representing 22 parties and blocs) and 1,160 candidates standing in
   first-past-the-post constituencies, CEC chairman Mykhailo Riabets told
   reporters.

   According to Mr. Riabets, 577 candidates (20.8% of the total number) ran
   in the previous elections, but only 218 of them were elected. As of the
   evening January 29, the central election committee received documents for
   the registration of 23 parties and 13 blocs. In accordance with Ukrainian
   law, the CEC stopped accepting documents for the registration of
   candidates for parliament at 12.00 pm on January 29.


   PRESIDENT SIGNS DECREE ON FIGHTING PRODUCTION OF PIRATED CDs

   KYIV. The President of Ukraine has signed the decree "On Urgent Measures
   Aimed to Protect Intellectual Property in the Process of Production,
   Export, Import and Distribution of Laser Discs", which places this
   protection among the top priorities of state policies in the sphere of
   intellectual property.

   Under the decree, within one month the Cabinet of Ministers of Ukraine is
   to form, within the State Department of Intellectual Property and the
   Ministry of Education and Science, departments of intellectual property
   inspectors, introduce regular posts of intellectual property inspectors at
   companies producing laser discs and make sure that all discs made there
   have a special identification code.

   The decree also obligates the Ministries of Education and Science, and
   Internal Affairs, the State Tax Administration, Customs Service and
   Security Service to intensify control over how Ukrainian legislation on
   intellectual property is observed and to ensure efficient cooperation with
   one another.

   As Infobank has reported earlier, at its evening session on
   January 16, the Ukrainian parliament approved the law on
   licensing production, export, and import of optical media
   products, which was initiated by Mykhailo Pavlovsky
   (Batkivshchyna Party) and Volodymyr Chekalin (Communist Party).

   The approved law differs from the bill submitted by the
   government in that it licensing will apply only to CDs with
   recordings, i.e. involving copyrights and related rights. The
   bill also does not apply to CDs transited via Ukraine, or
   imported and exported by individuals for their own use, or those
   sent by international mail.

   Unlike the government version, random checks of enterprises
   producing CDs can be carried out only following authors' written
   appeals about infringements on their copyrights. The bill also
   imposes liabilities for false claims by authors about
   infringements on their copyrights.

   On December 21, 2001, the United States Government announced that
   it was placing prohibitive tariffs on $75 million worth of metals,
   footwear, and other imports from Ukraine because of its failure
   to enact legislation to crack down on sound recording and optical
   media piracy. The sanctions will offset United States government
   estimates of the amount of annual damages that this piracy of optical
   media (CDs, CD-ROMs, DVDs, etc.), which includes unauthorized
   licensing and production, has caused to Americans. These sanctions
   came into force on January 23.

   According to USA, Ukraine's exports of unauthorized compact discs
   (CDs) are disrupting markets. For over two years, the United States
   has been urging Ukraine to take measures to stop this piracy and
   prevent its recurrence. Despite the commitments Ukraine made as part
   of the June 2000 U.S.-Ukraine Joint Action Plan to Combat Optical
   Media Piracy in Ukraine, the Ukrainian Government has failed to
   curtail the piracy. Credible reports indicate that large volumes of
   optical media products continue to be pirated in Ukraine.


   KURATCHENKO REPORTS UAH 1 BILLION SHORTFALL IN STATE RESERVE FUNDS
   INVENTORY

   KYIV. In the course of an inventory in the State Agency for Material
   Reserves (before its conversion into a State Committee for Material
   Reserves)inspectors have revealed a UAH 1 billion shortfall worth of
   goods, the For-u.com quotes the committee head Volodymyr Kuratchenko as
   saying on January 30.

   According to Mr. Kuratchenko, by arbitrarily using state reserves without
   restituting some entities have run into a total UAH 4 billion debt toward
   the State Reserve, with the largest debtors the Ministry of Fuel and
   Energy (about UAH 1.5 billion), Khlib Ukrayiny (UAH 800 million), as well
   as other 80 enterprises which owe about UAH 3 billion to the State
   Reserve.

   In the wake of this, the State Reserve has filed court claims to recover
   debts from the Zaporizhia Aluminum Plant and Zaporizhia Plant of Abrasive
   Materials, Zaporizhia Titanium and Magnesium Plant, and Khlib Ukrayiny.
   According to Mr. Kuratchenko, the first two plants have arbitrarily used
   up respectively UAH 110 million and UAH 178 million worth of the State
   Reserve's bauxite ore currently in storage at the plants. Plants
   representative explained the shortfalls by water and wind erosion and soil
   sinking.


   UKRTELECOM'S SELL-OFF IN 2002 MIGHT BE OFF, RYABCHENKO SAYS

   KYIV. The sale of a 37% interest in the Ukrtelecom national JSC next year
   will not take place. Such is the opinion of Verkhovna Rada's ad hoc
   oversight commission on privatization head Oleksandr Ryabchenko made
   public at the January 31 session of the State Property Fund board.

   The For-ua.com report quotes Oleksandr Ryabchenko as saying that among the
   top country's leaders their is an opinion not to sell the stake this year
   due to the situation on the market of telecommunications.

   Besides, the head of the VR commission believes that some changes are to
   be made in the privatization laws prior to Ukrtelecom's sell-off to make
   it more successful, notably, to cancel a provision on the clearance by the
   state needed for new stock emissions because no serious investor will take
   part in the tender if this provision is retained.

   As Infobank has reported earlier, in January Vasyl Rohovyi, the country's
   Vice Prime Minister in charge of the economy, said that Ukraine is going
   to announce the terms of the sale of a 37 percent stake in OJSC
   Ukrtelecom, the national communication operator, in the middle of April
   this year. The stake is going to be sold in an international tender.

   According to Mr. Rohovyi, in the nearest few weeks the Ukrainian
   government and the State Property Fund are going to sign a document on
   extending cooperation with the SPF consultant on Ukrtelecom privatization,
   a consortium of Millennium Financial Services, Squire Sander & Dempsey and
   Mason Communications. The previous agreement expired on December 31,
   2001.

   The face value of the stake in Ukrtelecom is UAH 1,732,000,000. Under
   Ukrainian law, a 50% + 1 share in the company will remain state-owned and
   nearly 13% will be sold to Ukrtelecom employees on preferential terms. It
   is expected that the employees will not be able to buy more than 8% of the
   shares, therefore the rest of the stake which is supposed to be sold on
   preferential terms will be put up for sale on international stock
   exchanges.


   RUSSIA RAISES PRICES FOR NUCLEAR FUEL FOR UKRAINE, FOR RE-IMPORTING SPENT
   FUEL

   MOSCOW. Russia's Ministry of Nuclear Energy has confirmed that in 2002
   prices for nuclear fuel for Ukraine's NPPs will be raised by 10% and for
   fuel recycling up by 60%, the Forum Internet publication reports.

   Forum quotes head of the ministry's public relations department Nikolai
   Shyngaryov as saying that the talks between Russia and Ukraine on the
   issue are going on and the decision cannot be final. "The present price
   hikes reflects the tendency of bringing our prices closer to international
   standards", the official said.

   In 2001, Ukraine bought Russian nuclear fuel at 30% lower than the world
   prices.


   EBRD AGREES TO SOFTEN TERMS OF ITS LOAN TO COMPLETE RIVNE AND KHMELNYTSKY
   NUCLEAR POWER PLANTS

   VINNYTSIA. The European Bank for Reconstruction and Development has
   agreed to soften the terms of its loan earmarked to complete the Rivne and
   Khmelnytsky NPPs, Korrespondent.net quotes Prime Minister Anatoly Kinakh
   as saying at his press conference in Vinnytsia.

   According to Mr. Kinakh, Ukraine has been negotiating the loan since
   January and succeeded to talk the EBRD into lowering the cost of the
   project earlier evaluated at US$ 1.4 billion and soften its demand for
   higher electricity tariffs. A. Kinakh, however, refused to disclose the
   details of the deal, saying the talks are still under way.

   As Infobank has reported earlier, on November 29, following Ukraine's
   request, the Board of Governors of the European Bank for Reconstruction
   and Development postponed the release of a US$ 215 million loan earmarked
   for the completion of nuclear power plants in Rivne and Khmelnytsky.

   According to the EBRD press service release, the Ukrainian party requested
   to have additional consultations on some controversial provisions on the
   loan agreement. Ukraine has made its request in the letter by Prime
   Minister Anatoly Kinakh analyzed by the EBRD Board on November 29 and the
   statement by Ukraine's representative in the EBRD Yury Poluneyev.

   On December 7, 2000, the EBRD took a decision to disburse a US$ 215
   million loan to Ukraine. The decision was to have been finally signed by
   December 6, 2001. Given the document is not signed by this deadline, the
   terms of the loan are subject to revision.

   Mikhail Kasyanov, the Russian Prime Minister, told a news conference on
   December 4, after the sitting of the Ukrainian-Russian inter-governmental
   commission that Russia is ready to give Ukraine a loan worth US$ 400-500
   million for the latter to finish the construction of Rivne and Khmelnytsky
   nuclear power plants; of this sum, nearly US$ 60 million may be given in
   2002.

   The Ukrainian Prime Minister, Anatoliy Kinakh, told the same news
   conference that in December Ukraine and Russia are expected to sign an
   agreement on the completion of the nuclear power plants in Rivne and
   Khelnytsky and on the basis of this deal the two countries are expected to
   sign a credit agreement in the first quarter of 2002. Mr. Kinakh said he
   hoped it would be possible to start works at the power plants in the
   second quarter of the next year.

   On December 10, Ukrainian government and the European Bank for
   Reconstruction and Development (EBRD) agreed to set up a working group
   within a project of EBRD's possible involvement in the completion of two
   power units at Rivne and Khmelnytsky nuclear power plants.




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