The Ukrainian Weekly 2005, No.26
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www.ukrweekly.com INSIDE:• Washington concerned about Ukraine’s eligibility for WTO — page 3. • Yulia Tymoshenko addresses Ukrainians in France — page 4. • The return of “News from Here” — page 11. Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXXIII HE KRAINIANNo. 26 THE UKRAINIAN WEEKLY SUNDAY, JUNE 26, 2005 EEKLY$1/$2 in Ukraine WorldT Economic ForumU roundtable in Kyiv Ukraine’sW WTO bid hinges outlines plan for Ukraine’s economic progress on a package of legislation strengthening of Ukraine’s international by Zenon Zawada Whether Ms. Tymoshenko is able to role. Kyiv Press Bureau muster enough votes in the Rada will The plan outlined specific steps some demonstrate whether President Viktor of which must be implemented before KYIV – In what has emerged as a crit- Yushchenko’s government has the neces- July 1, the planned start of the ical political test for the new government, sary political footing to realize its ambi- Verkhovna Rada’s two-month summer Prime Minister Yulia Tymoshenko is ral- tious economic goals. vacation, in order to push for the earliest lying votes to support a package of bills Ms. Tymoshenko’s rallying cry is a that would enable Ukraine to possibly possible WTO accession, increase for- direct attempt to satisfy the demands of join the World Trade Organization eign direct investment and improve the international financiers and investors (WTO) this year. general business environment in who attended the World Economic Ms. Tymoshenko announced the cam- Ukraine. Forum’s Ukraine Roundtable held in paign on June 21, exactly a week after a The 10 points can be summarized as Kyiv on June 16-17. As part of their “Ten Communist-led majority in the follows: Action Steps” proposed to Mr. Verkhovna Rada voted to reject several Yushchenko, they placed WTO compli- 1. Enact all legal changes needed for bills that would have helped clear the WTO entry before the Parliament’s sum- ance as their most urgent priority for way for Ukraine’s WTO bid. Ukraine. mer break. “We will carry out consultations with 2. Create a unit of specialists to sup- “The participants propose the follow- all the parliamentary fractions in order ing steps to be taken urgently: 1. Enact port foreign investors. for this vote to occur,” Ms. Tymoshenko 3. Implement the foreseen one-stop all legal changes needed for WTO entry told reporters after a joint meeting of par- before the Parliament’s summer break,” procedure for starting new businesses. liamentary leaders and government offi- 4. Eliminate excessive and overlap- the statement noted, adding, “If neces- cials. sary postpone the Parliament’s summer ping regulation. It was apparent during the meeting World Economic Forum 5. Repeal the Economic Code and vacation.” that there were enough votes to pass the Mr. Yushchenko had repeatedly stated President Viktor Yushchenko delivers enact the Commercial Law Reform. necessary laws, she said. 6. Enact the Financial Securities Law, his goal of having Ukraine join the WTO his keynote address at the World The package of bills includes measures by the year’s end. However, only one Economic Forum Ukraine Roundtable. which is essential for shareholder protec- on protecting intellectual property rights, tion. and-a-half weeks remain before the as well as removing technical barriers Verkhovna Rada’s plenary session con- by Mark Adams 7. Implement international accounting hindering trade, and reducing or abolish- World Economic Forum standards (IFRS). ing export duties on certain products. (Continued on page 22) 8. Pass necessary tax reforms to KYIV – A 10-point action plan for increase Ukraine’s competitiveness and rapid economic progress was presented generate, in the long run, higher tax rev- to President Viktor Yushchenko of enues. Ukraine on June 17, the final day of the 9. Make efforts to enhance manage- Environmental activists criticize World Economic Forum’s Ukraine ment and business skills and to encour- Roundtable. Some 250 participants of age the transfer of knowledge and tech- inaction of Yushchenko administration the roundtable proposed a framework for nologies from abroad. by Vladyslav Pavlov investigating the schemes by which the the urgent measures to improve investor 10. Fight corruption. Special to The Ukrainian Weekly lands were distributed, according to a news confidence. Participants in the World Economic report aired on Novyi Kanal television. “The participants are impressed with Forum’s Ukraine Roundtable had other KYIV – In the first 150 days of Viktor On the botanical garden’s arboretum the remarkable reforms the new govern- Yushchenko’s presidency, a pro-environ- grounds, more than 1,200 types of plants (Continued on page 19) ment has already undertaken and their mental political policy is virtually non-exis- were grown, Novyi Kanal reported. The expectations are now high,” said Prof. tent, the director of the Kyiv Ecological- prosecutor is also investigating the selling Klaus Schwab, founder and executive Cultural Center, Volodymyr Boreiko, said off of some of these scientific specimens. chairman of the World Economic Forum. at a June 15 press conference. A private company calling itself “The Ukrainian government must seize So far, President Yushchenko has failed Donetsk Ecological Investment Project this window of opportunity to deliver to fulfill campaign promises to repossess somehow became owner of these lands, reforms in a fast, decisive and compre- park lands and forest preserves stolen and Novyi Kanal reported, and did not care hensive manner.” distributed by oligarchs, to significantly for the plant specimens. “Based on infrastructure, location and curtail hunting and exclusive safaris, and Apparently, even National Academy people, Ukraine has the potential to to rid the Ministry of the Environment of of Sciences President Boris Paton become the key production site of corrupt officials, Mr. Boreiko said. allowed for the sale of the land. Eastern Europe, but the challenges are “Of all these things, nothing has been Botanical gardens throughout Ukraine tremendous,” he said. “If Ukraine were done, with the exception of returning the fall under the academy’s purview. to achieve a growth rate of 6 to 7 percent lands of the Yalta mountain-forest pre- One culprit that environmentalists can – which would require massive foreign serve,” said Mr. Boreiko, referring to the point to is Donetsk oligarch Rynat investment – Ukraine would need 15 865 acres of land in Crimea that former Akhmetov, who illegally built a 148-acre years to catch up with income levels of president Leonid Kuchma took posses- helipad and hangar for two helicopters Hungary,” Prof. Schwab noted. sion of and distributed to his colleagues. and three planes on the botanical garden The 10-point action plan contains In addition to the Yalta preserve, Mr. grounds, Mr. Boreiko said. broad policy issues which participants Yushchenko promised to return land in “Four men built their dachas on 10 said must be driven forward by a coher- the Donetsk Botanical Garden, which acres right in the Nikitsk Botanical ent government program. The areas par- faces a deeper crisis, and the Nikitsk Garden,” Mr. Boreiko said. “And the ticipants highlighted included improved Botanical Garden, which is in Crimea. name of one of them – Sviatoslav corporate governance, extensive reform Government officials distributed into World Economic Forum Piskun! The guilty are not punished, and of the public administration, concerns private hands more than 363 acres of the land is not returned.” over state intervention in business – par- Klaus Schwab, founder and executive valuable land at the Donetsk Botanical Another nature preserve under threat ticularly regarding the issue of privatiza- chairman of the World Economic Garden, Mr. Boreiko said. tions, clearer government policies and a Forum. Donetsk’s lead prosecutor is currently (Continued on page 22) 2 THE UKRAINIAN WEEKLY SUNDAY, JUNE 26, 2005 No. 26 ANALYSIS NEWSBRIEFS Ukraine’s government tries NEWSBRIEFS Ukraine slams PACE resolution outskirts of Kyiv. In recognition of his con- tributions to the national rebirth of Ukraine, to get a grip on corruption KYIV – Ukrainian Foreign Affairs in August 2000 he was accorded the title of Minister Borys Tarasyuk said in Kyiv on Hero of Ukraine. The monument is to be by Roman Kupchinsky suicide. June 21 that a draft resolution calling on built in the Kyiv city center. The Cabinet of RFE/RL Belarus, Ukraine and Moldova Both men were known as supporters the Parliamentary Assembly of the Council Ministers and city authorities are to consult Report of former President Leonid Kuchma and of Europe (PACE) to investigate persecu- with Mr. Chornovil’s family and colleagues their arrest has led the opposition to tion of the opposition in Ukraine, Georgia to decide all issues related to the monu- During the last two months of 2004, as declare that they are being “politically and Kyrgyzstan is a “provocative” docu- ment’s erection, which is to be completed the Orange Revolution was changing the persecuted.” ment, RFE/RL’s Ukrainian Service and before December 24, 2005, the 65th face of the Ukrainian body politic, In mid-June, Mr. Rizak’s two assis- Interfax reported. The draft resolution was anniversary date of his birth. (Permanent approximately $1 billion left Ukraine. tants were also charged with crimes and submitted to the PACE by a small group of Mission of Ukraine to the United Nations) Some of this money was reportedly pri- put on a wanted list. Russian parliamentarians. “Why did the vate and some belonged to the Ukrainian Another Kuchma-appointed regional Russian parliamentarians, members of the Ukrainian government is sued treasury. The people responsible for leader, Volodymyr Scherban from Sumy, Parliamentary Assembly, keep silent when transferring this money out of the coun- has been indicted on a number of [President Leonid] Kuchma’s authoritarian STRASBOURG – The Investment- try have been identified, according to a charges, including extortion, and is being regime ruled in Ukraine?” Mr.