The Ukrainian Weekly 1996, No.37

www.ukrweekly.com INSIDE:• Parliament reconvenes, but not all deputies have taken oath — page 3. • Music premieres to remember — page 8. • Dateline Zdynia: The Lemko Vatra — page 9. Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXIV HE No.KRAINIAN 37 THE UKRAINIAN WEEKLY SUNDAY, SEPTEMBER 15, 1996 EEKLY$1.25/$2 in Ukraine KuchmaT says Unew Russian tax TransitionW to hryvnia reported could result in “economic war” to be proceeding smoothly by Roman Woronowycz Kremlin to hold off for 30 days. by Roman Woronowycz Kyiv Press Bureau Now President Kuchma has said that Kyiv Press Bureau any VAT would halt the influx of KYIV — Ukraine’s President Leonid Ukrainian goods into Russia, which is KYIV — Ukraine’s Deputy Prime Kuchma said on September 7 that Russia’s overwhelmingly Ukraine’s largest trad- Minister for Economic Affairs Viktor decision to impose a value-added tax ing partner. Pynzenyk said on September 12 that (VAT) on Ukrainian goods could result in At a press conference held on monetary reform and the transition from “economic war,” and called the levying of September 7, the president asserted that the karbovanets to the hryvnia has gone the tariff political in nature. “unless the decision is canceled, this will smoothly thus far and has exceeded Beginning on October 1 the Russian in fact mean an economic war.” He tem- everyone’s expectations. Federation will impose a 20 percent tax on pered the remark by explaining that “one If all continues to go well for the dura- all goods entering the country from should take into account at the same time tion of the transition, Mr. Pynzenyk said Ukraine. The decision was made by presi- that all wars end in peace.” he had confidence that the 1997 budget, dential decree back on August 18. It seems that the president has put up which went to the Parliament the same Originally the tariff was to have begun on the “beware of dog” sign when no dog day, is a realistic one that will lead to a September 1, but Ukraine’s Deputy Prime lives in the yard. The “economic war” long-awaited economic upswing. Minister Viktor Pynzenyk convinced the that Mr. Kuchma has threatened could The hryvnia, which was introduced on hardly be won by Ukraine; only 10 per- September 2 and for a two-week transi- cent of Russia’s trade is with its southern tion period was to be the currency of neighbor, while Ukraine sells 60 percent Ukraine alongside the old karbovanets, of its goods to Russia. Moscow also has has quickly become the major vehicle of economic transactions. Mr Pynzenyk Crimean library seeks stifling control over the Ukrainian econ- said that in the first five days of mone- omy because it fulfills much of Viktor Pynzenyk, Ukraine’s deputy tary reform, 60 percent of the supply of Ukraine’s energy needs. prime minister for economic affairs. Ukrainian books the karbovanets in circulation was Four days later the president’s chief of by Marta Kolomayets changed out. By September 12, 74.1 per- staff, Dmytro Tabachnyk, softened the Trust in the new Ukrainian currency is Kyiv Press Bureau cent (232 trillion kbv) of the old money stance taken by President Kuchma. He higher than thought, it turns out. Almost had been replaced. KYIV — Although more than 1 said the term “economic war” should be two-thirds of all karbovantsi exchanged “Our prognosis as to how the transi- million Ukrainians live in the used loosely. “I believe that such a term were for hryvni, explained Mr. Pynzenyk tion would occur was more pessimistic,” Autonomous Republic of the Crimea, should be used in quotes,” said the chief (about 150 trillion kbv). The hryvnia has said Mr. Pynzenyk. “The people have there is not one Ukrainian-language of staff. He gave no specifics as to what remained steady against the dollar, trad- proved us wrong, and we are pleased.” library or reading room on the penin- action Ukraine might take should Russia ing at around 1.70 hryvni. Many had feared that the hryvnia sula, according to a recent article in proceed with the VAT. The deputy prime minister, who holds a would prove as unstable as the karbo- Ukraina Moloda, a popular national He did call Russia’s decision “artifi- Ph.D in economics, also expressed delight vanets had been and that the public would cial price control” and said it was imple- that deposits in savings banks have dra- newspaper published in Kyiv. opt to buy dollars, a scenario that could mented in part to help fill Russian cof- Despite the fact that the Crimea’s have left the hryvnia worthless in the fers and avoid a budget crisis. Ukrainian speakers appealed to the international markets it is trying to crack. (Continued on page 3) local Ministry of Culture in Russia has said that, in effect, Ukraine Symferopil on a number of occasions is dumping goods on the Russian market to help establish at least one Ukrainian because it is not a member of the CIS library in the republic, these requests Customs Union and therefore does not seem to have been ignored. adhere to the value-added taxes that the Public upbeat about new currency So, Ukrainian language speakers participating countries have imposed upon by Roman Woronowycz ceeded in “an open and honest” man- and Ukrainian literature enthusiasts themselves. The Customs Union agree- Kyiv Press Bureau ner. Only 13 percent disagreed. have decided to take matters into ment signed in 1992 by most CIS mem- Kyivans said that another factor that bers, but not Ukraine, stated that the VAT KYIV — A public opinion poll con- their own hands and form a com- makes the introduction of the hryvnia would be collected by the source country ducted in Kyiv on September 7 shows mittee to create a Ukrainian lan- so promising is that it has proceeded in rather than the importing country, which is that Kyivans have become downright guage library in the Crimea. a non-confiscatory manner, that is, no contrary to Western norms. For CIS mem- upbeat about the new hryvnia. To date, they have the space, limits or penalties were put on what ber-states it is the only option because bor- The survey, conducted by the they have the manpower – a num- amount or in what manner the old cur- ders remain open and so it is not possible Democratic Initiative, a sociological rency could be exchanged. ber of people have said they would to track tariffs at customs checkpoints. survey organization funded by work free of charge at the library – On September 2 Russia’s Minister of Freedom House, asked 400 people When asked if they had suffered but they have no Ukrainian-lan- the Economy Yevgeni Yasin said the whether “the introduction of the hryv- financial loss as a result of the mone- guage books. “market situation and budgetary require- nia will change the situation in tary reform, only 11 percent answered The organizing committee has ments” conditioned the decision, accord- Ukraine.” Fifty-eight percent of those “yes,” while 38 percent said “none.” issued an appeal for Ukrainian-lan- ing to Interfax-Ukraine. He added that if questioned responded in the affirma- However, a full 40 percent said that guage books. They are requesting Ukraine would accede to the customs tive, 29 percent said “no” and 13 per- price increases in the marketplace that book donations be sent to : union then the problem, which President cent stated that it is difficult to say. prior to the introduction of the hryvnia First Ukrainian Public Library in Kuchma called the application of political This is a drastic change from how had cost them. the Crimea, vul. Kyivska 139a, pressure on Ukraine, would disappear. respondents answered in September Finally, Kyivans believe the hryvnia Symferopil, 33050 Ukraine. A working group of Ukrainian and 1995, when only 23 percent felt opti- will remain relatively stable. A mere 4 The organizers request that each Russian government officials was formed mistic about a new Ukrainian currency percent believed that the hryvnia would book include an inscription or to resolve the issue in August when and 42 percent replied that the hryvnia dramatically drop in value against the marker identifying the donor (indi- Ukraine’s Prime Minister Pavlo Lazarenko would not change matters in Ukraine. dollar within a year; 22 percent foresaw vidual or organization) so that traveled to Moscow with Deputy Prime The reason for the change of opin- no change at all; while the majority, 46 future generations will know who Minister Pynzenyk. Conventional wisdom ion also is striking. A large majority, percent, responded that the hryvnia helped the peninsula establish its holds that once all is said and done, certain 69 percent, feel the transformation would lose only a small amount of first Ukrainian library. goods will be excluded from the VAT, from karbovanets to hryvnia has pro- value vis-à-vis the dollar. while others will be taxed. 2 THE UKRAINIAN WEEKLY SUNDAY, SEPTEMBER 15, 1996 No. 37 Growing credit union movement NEWSBRIEFSNEWSBRIEFS holds second conclave in Ukraine Good news for beer lovers Deputies boycott Crimean Parliament by Marta Dyczok Since Ukraine became independent five years ago, up to 200 credit unions have KYIV — When Ukraine declared its SYMFEROPIL – A majority of the KYIV – Cooperation has become one officially registered. Not all of them are independence in 1991, its beer brewing Crimean legislature boycotted the sched- of the new buzz words in the new operational yet since many face adminis- industry was not in good shape. Ancient uled opening session of the regional par- democracies of Eastern Europe.

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