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INSIDE:• Election bloc profile: Party of the Regions — page 3. • U.S.-Ukraine Foundation marks 15th anniversary — page 4. • The politics of public language use in Ukraine — page 6. Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXXIV HE No.KRAINIAN 8 THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 19, 2006 EEKLY$1/$2 in Ukraine Ukraine’sT internalU affairs minister Yanukovych promisesW economic growth visits D.C. for talks with U.S. officials when Party of the Regions gains power by Yaro Bihun importance of the issues on his agenda by Zenon Zawada raling” 10.3 percent inflation last year Special to The Ukrainian Weekly during a briefing at the Ukrainian Kyiv Press Bureau were the massive increases in social Embassy on February 9. spending and pensions that the govern- WASHINGTON – Ukraine’s Minister “There is no longer any doubt after the KYIV – Suggesting that the Party of ment couldn’t afford, Mr. Yanukovych of Internal Affairs Yurii Lutsenko held tragic events of September 11 that crime the Regions would once again return said. three days of talks here on February 8-10 has no boundaries and that cooperation Ukraine’s economic growth to double- He vowed to deliver a budget surplus, with U.S. government officials and other will only be effective if it is global,” he digit levels, Viktor Yanukovych deliv- instead of the deficits in the 2005 and interested parties, discussing bilateral said, noting that his visit focused on ered a strategy for economic develop- 2006 budgets. The government is print- cooperation in combating international improving cooperation with his ment of improving the investment cli- ing money to please voters, he said. crime and related issues, and political American colleagues in resolving such mate and drawing closer to Russia. “When we come to power, we will developments in Ukraine under the post- existing problem areas as combating traf- Addressing hundreds of Party of the stick to our principles of financial Orange Revolution administration of ficking of people, drugs, immigration Regions members and journalists on responsibility and we will throw in the President Viktor Yushchenko. issues and other crimes. February 14, Mr. Yanukovych stressed garbage pail of history the incompetent His schedule included official meet- He said he was especially interested in the economic accomplishments during economic policies of the current govern- ings with Attorney General Alberto reaching agreement on finalizing a bilat- his tenure as prime minister and criti- ment,” Mr. Yanukovych said. “I came Gonzales and senior officials of the eral extradition treaty, which has been cized his successor Yulia Tymoshenko here today to say that the closed circle of departments of State, Treasury, and sidetracked since 1999. Ukraine’s human and President Viktor Yushchenko for inflation will be broken if the Party of Homeland Security as well as the rights record, which was one of the driving the economy to near ruin. the Regions comes to power.” National Security Council, and members obstacles to such an agreement, he said, “People are starving and freezing as a Under his tenure as prime minister in of Congress. is no longer a stumbling block after the result of the abysmal economic policies 2004, Ukraine’s Gross Domestic Product He also had discussions with non-gov- changeover in Ukraine’s government in of the government,” Mr. Yanukovych grew more than 12 percent, Mr. ernmental organizations that have shown the last presidential election. declared. Yanukovych pointed out, far superior to an interest in developments in Ukraine, Mr. Lutsenko said he received a favor- Mr. Yanukovych’s speech was part of a the 2.4 percent growth last year. such as the Center for Strategic and able response on this issue from Under- vigorous Party of the Regions political Other economic accomplishments, International Studies, the Marshall Fund secretary of State Paula Dobriansky earli- campaign heavily concentrated on attack- Mr. Yanukovych said, consisted of and the Carnegie Endowment for er that same day and he expected a simi- ing the Orange political forces as inca- reducing entrepreneurial profit taxes International Peace. pable of handling Ukraine’s economy. from 30 percent to 25 percent, reducing Minister Lutsenko underscored the (Continued on page 10) Among the triggers of Ukraine’s “spi- personal income taxes from 40 percent to 13 percent and introduced substantial tax benefits for health care and education, which the Yushchenko government can- The Orange Circle briefing focuses on gas crisis celed. by Adriana Melnyk (Continued on page 3) NEW YORK – On the first day of 2006, following an unprecedented gas dispute, Russia cut off natural gas sup- plies to Ukraine, disrupting their deliv- ery to other European nations dependent Ukraine earns on gas from Russia. And so, as the New Year began, Europe saw a new chapter its first medal being written in the economically and politically strategic natural gas sector. Observers and experts who have been atPARSIPPANY, Torino N.J. Games – Six days into following the constantly evolving gas the competition at the Winter Olympics crisis agree that its implications go well in Torino (a.k.a. Turin), Italy, Ukraine beyond the borders of the two countries earned its first medal of the Games: a most directly involved – Ukraine and bronze won on Thursday, February 16, Russia – what needs to be better under- by biathlete Lilia Efremova in the stood is the nature of these implications. women’s 7.5 kilometer sprint. On Wednesday, February 1, the New The next highest finish for Team York-based non-governmental organiza- Ukraine was a sixth place earned by tion The Orange Circle held the first in a Liliya Ludan in the women’s singles of series of public briefings for media, busi- the luge competition on Tuesday, ness and policy-makers, this one titled Vasyl Lopukh February 14. “The Ukraine-Russia Gas Crisis: Dr. Anders Aslund speaks at The Orange Circle briefing. Her teammate Natalia Yakushenko, Lessons for Business and the who was ranked seventh in the World tor at Bear Stearns in New York. The dis- ed the speakers’ perspectives on the International Community.” The event Cup standings, crashed during one of her cussion was opened and moderated by implications of the recent gas crisis for took place at the Ukrainian Institute of runs and did not finish the competition. Ukraine’s economic and political stabili- America, and was attended by members Adrian Karatnycky, founder and president Ms. Yakushenko’s crash came on a of the investment banking and financial of The Orange Circle, following introduc- ty, and on the effect the crisis has had on Ukraine’s relationship with Russia and portion of the track that has daunted communities, journalists, United Nations tory remarks by Adrianna Melnyk, The lugers, including several of world-class officials, diplomats and members of the Orange Circle director of research and out- with its European neighbors. Underlying the thread of the discussion was the caliber. Six women lugers were not able Ukrainian Institute of America. reach, and the president of the Ukrainian impact of the gas crisis on Ukraine’s to finish their races and one did not start Speakers at the briefing were Anders Institute of America, Jaroslav Kryshtalsky. upcoming parliamentary elections. after crashing during training. Aslund, Senior Fellow at the Institute for The briefing centered on themes rele- Having just returned from a trip to In the luge men’s doubles, the duo of International Economics in Washington, vant to the business and investment Oleg Zherebetskyy and Roman and Marianna Kozintseva, associate direc- communities. The presentations includ- (Continued on page 18) (Continued on page 11) 2 THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 19, 2006 No. 8 ANALYSIS NEWSBRIEFSNEWSBRIEFS New Black Sea Fleet crisis arises Comments on Black Sea Fleet talks Interfax reported, citing the presidential by Taras Kuzio insisting that it has a right to undertake an press service. Mr. Yushchenko also said KYIV – Ukrainian President Viktor inventory of the facilities leased to the that he shares the concern expressed by the Yushchenko has said that Ukraine should Soon after signing a new gas contract Russian Black Sea Fleet. In mid-December NGOs, political and business groups, and have a clear strategy for defending its on January 4 that defused a Europe-wide 2005 a Ukrainian government plan was international organizations, including the national interests in talks with Moscow on gas crisis, Ukraine and Russia are again released to this effect. Russian fleet com- European Union, over the lack of informa- terms for Russia’s Black Sea Fleet, embroiled in a low-intensity conflict over manders have refused access to Ukrainian tion on the Swiss-based company Interfax reported on February 14. “All the Black Sea Fleet. The issue is not just facilities they rent, one reason being due to RosUkrEnergo, which holds a monopoly lease terms should be guided by the appro- control over lighthouses, but reflects a their corrupt sell-off and renting of these on gas supplies to Ukraine through Russia. far more fundamental campaign since priate international agreements and take The government, if necessary, will look for properties to commercial structures. account of international experience and President Viktor Yushchenko’s election: The Ukrainian side has sought to place alternative approaches to the gas sector and Ukraine taking back control over lands today’s trends on the real estate market,” cooperation with Russia, Mr. Yushchenko the terms of the lease of Ukrainian land he said. Hryhorii Lutsai, a representative and buildings in Crimea that are illegally and facilities to the Russian fleet in line added. He also ordered the government to held by the Black Sea Fleet. of the Sevastopol administration, suggest- gather complete information on with “international standards,” in ed on February 14 that the annual rent for Ukraine and Russia signed an agree- President Yushchenko’s words.

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