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The Ukrainian Weekly 1993

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The Ukrainian Weekly 1993 Іі8И»д by the Ukrainian National Association Inc., a fraternal non-profit associationj U rainianWeekl V Vol. LXI ШNo. 8 THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 21, 1993 50 cents Ukraine moves toward convertible currency Kravchuk visits Great Britain, by Borys Klymenko of inflation) due to the various hard- signs treaty on cooperation currency exchange rates (rates for KYYIV — Amidst a cold, dreary buying and selling the karbovanets), it is by Marta Dyczok ting serious investment. Klaus Hoff­ winter of hyper-inflation and wage not wise to introduce full convertability Special to The Ukrainian Weekly man, the EBDR's senior country mana­ freezes, Ukraine's Cabinet of Ministers of the karbovanets. For example, a ger for Ukraine, said, "We expect adopted a radical decree that will lead to karbovanets sold today at a rate of LONDON — Lunch with the Queen commitment from Mr. Kravchuk and full convertability of the karbovanets, 1,000 to a dollar, will be bought in a of England and a special visit to Edin­ the government to this reform pro­ Viktor Pynzenyk, deputy prime minister month for 2,500 to a dollar. If one burgh Castle did not make up for the gram." and minister of the economy, told decides to put the dollars in the bank, lack of concrete results of the four-day Speaking to the Confederation of journalists on Wednesday, February 17. instead of selling them, the bank rate visit of Ukrainian President Leonid British Industry, the nation's industrial will not meet the rate of inflation. Kravchuk to Great Britain on February leaders. President Kravchuk explained, The decree, titled "On the Monetary The National Bank of Ukraine will 9-12. "In practice, this is a slow process that Control System and Monetary Regula­ also introduce changes in hard currency Before departing on the visit, Presi­ will not be completed in a matter of tion," is geared toward full converta­ trade. Hard currency stores will sell dent Kravchuk had told journalists in months or a year." bility of the karbovanets. However, their products in two currencies: foreign Kyyiv that, "Our immediate future Afterwards he told reporters, "We are because of the current critical economic hard currency and the Ukrainian kar­ depends on this assistance. If the West is told, 'Once you produce some results, situation in Ukraine, this process will be bovanets converted in accordance with going to give us aid, it must be now." we can provide you with assistance." gradual. a free-market rate. Despite optimistically announcing that And we say, 'Once the results are visible Thus, the Ukrainian government will The government has also begun a series of important political and the assistance will no longer be needed." now introduce partial convertability of battling the myriad traders who stand in economic agreements would be signed For this reason we have to make clear the karbovanets. This means that all front ofKyyiv's departmem .lores and between the two countries, the president which results we have in mind. If we are businessmen who trade in hard cur­ at the train stations, selling coupons and returned with only a handful of pledges talking about the transition to the rency are under obligation to sell 50 per­ rubles for dollars and Deutschemarks. for conditional support. market and changing infrastructures, cent of their hard currency profit to the The only notable achievements of the then we need help now, and I mean now. international hard currency market, at It has said that it wants to open 16-member delegation's visit were an Otherwise, it simply will not happen." the free-market price. The rest of the currency exchanges. A free-market rate offer by Britain of limited security Helping President Kravchuk convey receipts will be registered in the hard means that currency is sold freely and guarantees to Ukraine, and a promise the urgent request for economic assis­ currency account of the business; of that bought freely in Ukraine. "This is a from the European Bank for Recon­ tance were some of the top guns of the amount, the business may sell even transitional period. Once we have 100 struction and Development to esta­ new government. However, Ministers more than half. percent convertability in Ukraine, we blish a special fund to assist Ukraine in Viktor Pynzenyk, Ivan Herts, Hryhoriy Mr. Pynzenyk explained that at will forbid the circulation of hard cur­ its de-nuclearization program. Piatachenko and Orest Klympush suc­ today's current rate of inflation and rate rency altogether," Mr. Pynzenyk con­ On the second day of the visit, the ceeded only in negotiating a series of of interest (which is lower than the rate cluded. United Kingdom-Ukraine Treaty was general agreements. signed, in which Britain agreed to These modest results are not sur­ extend security assurances once U- prising in view of Britain's current Housing market looks to privatization kraine ratifies the Nuclear Non-Proli­ economic state. In the midst of a major feration Treaty. British Prime Minister recession with soaring unemployment John Major stated, "It is our belief that and a plunging currency, Britain is supporters. This is why, as stipulated by Liudmyla Nikoiaichuk Ukraine's security will be stronger if engaged in serious debate on its future in the law regulating ownership, and Viktor Zubaniuk Ukraine can meet its non-nuclear un­ relationship with the European Com­ foreigners still do not have the right IntelNews dertakings." munity and reorganization of its armed KYYIV — Though foreigners can to purchase housing directly from the A British official explained that forces. now buy cooperative flats, private state. Britain had only agreed to the standard Economic and military commitments apartments or private houses directly Opponents of Mr. Cherep's idea guarantees nuclear powers provide to to Ukraine are not a priority on Britain's from Ukrainian citizens, this situa­ believe Ukraine must first take care each new signatory of the 1968 treaty. current political agenda, despite ge­ tion will change in the near future. of its citizens — among them the They consist of a pledge by Britain not nuine interest in Ukraine's independ­ With the growing privatization of poor. But the opportunity to resolve to use nuclear weapons against U- ence as a potential stabilizing force in housing and the formation of a this problem rarely presents itself. kraine, and to support Ukraine at the Eastern Europe and a counterbalance housing market, anyone with enough At present, Ukraine is unable to United Nations in the event of aggres­ to the re-entry of Russia into the money, including foreigners, will be guarantee housing for all of its sion by another state. European balance of power. able to buy real estate at auction. citizens. Since Ukraine became in­ Throughout the visit, British leaders In Parliament the head of the Britain simply does not have the dependent over a year ago, the stressed the importance of Ukraine Committee on Construction, Archi­ resources to play a major role in U- number of families without apart­ ratifying the START I Treaty, which it tecture and Communal Housing, kraine's immediate future. However, ments has increased considerably. had pledged to do by the end of 1992. At Valeriy Cherep, defended the idea of both countries are interested in main­ According to the Committee for a press conference in London, Presi­ wealthy Ukrainian citizens and taining friendly relations, and signed a Construction, Architecture and dent Kravchuk repeated that the treaty foreigners freely purchasing real whole series of agreements on cultural Communal Housing, the number of was on the Parliamentary agenda for estate from the state. Mr. Cherep and academic exchanges aimed at "in­ families on apartment waiting Hsts this week. "The treaty is made up of proposed organizing special auc­ creasing mutual understanding." two years ago was 2.3 miUion, while eight volumes of paper and we have tions, which would offer so-called While in England, President Krav­ today that number has risen to nearly taken only two months to study the "contested" housing and renovated chuk took the opportunity to enjoy 2.8 milHon. document," he told reporters. "I have or luxury apartments built to more some of the cultural aspects of the no doubt that this matter will be lavish plans. It was proposed to use Construction of new housing, world's oldest democracy which still has resolved by our Parliament." He added, money earned from these auctions to however, is falling: six years ago a ruling monarchy. He toured the "We understand the positions of the build affordable housing for local Ukraine was building 20 million Science Museum and was shown Western countries, but ask that we are residents. square meters of apartment space around the National Gallery by the each year (both state and private), also understood." Though many observers consider­ curator of 19th century painting. After while in 1992 the figure fiad fallen This same attitude seemed to prevail ed the idea sensible, during discus­ visiting Westminster Abbey, he laid a some 30 percent. Given the economic during discussions on economic mat­ sion of the draft law on privatization wreath at the tomb of the unknown crisis, experts predict that in 1993 ters. British economic leaders expect of state housing, the measure turned soldier. tangible results from Ukraine's reform out to have more opponents than (Continued on page 18) to a market economy before commit­ (Continued on page 18) THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 21, 1993 No. 8 ANALYSIS Newsbriefs Ukraine and the CIS: on Ukraine a troubled relationship • DEBRECEN, Hungary — On half of an inch on his first try at that by Dr. Roman Solchanyk against the draft charter.
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