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Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXVIII HE No.KRAINIAN 8 THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 20, 2000 EEKLY$1.25/$2 in Ukraine U.S. delegation discusses T ULeaders of leftist opposition in Rada targetsW of criminal investigations Ukraine’s economic reform by Stefan Korshak and his first vice-chairman, Adam Special to The Ukrainian Weekly Martyniuk, in the Pechersk court on February 8. during meetings in Kyiv KYIV – The day after a physical con- Mr. Tkachenko claimed the majority’s frontation for control of the chairman’s ros- vote removing him as Verkhovna Rada trum in the Verkhovna Rada, leaders of the chairman was illegal, and initially refused KYIV – Ambassador Stephen leftist opposition were facing criminal Sestanovich, special advisor to the U.S. sec- to surrender the post. He said the present investigations in Kyiv. retary of state for the new independent parliamentary obstruction charges are Oleksander Tkachenko, the man consid- states (NIS), said he discussed Ukraine’s trumped-up and illegal. ered by most observers to be at the center plans for economic reform “and how the But, probably more troublesome for Mr. of leftist national deputies’ resistance to the United States can best support them” when Tkachenko is a second legal assault stem- pro-Kuchma majority’s rule, was the first he met with President Leonid Kuchma and ming from unresolved corruption allega- to fall under the government’s cross hairs. top Ukrainian government officials on tions leveled against him three years ago. The bad news came to the former chair- February 3 and 4, according to a U.S. State Simultaneously with Judge Zamovenko’s man of the Parliament on February 9 from Department release. declaration that parliamentary obstruction two high officers of the law. Additionally, “we met with the represen- charges against Mr. Tkachenko merit inves- First, Mykola Zamovenko, chairman of tatives of the IMF [International Monetary tigation, Ukraine’s Procurator General the Pechersk City District Court, ordered Fund] and World Bank here in Kyiv, as Mykhailo Potebenko announced to government prosecutors to investigate well as with the Executive Committee of reporters on February 9 that his office the American Chamber of Commerce,” Mr. whether Mr. Tkachenko could be charged would reopen an investigation into the Sestanovich said during a press briefing with violating his obligations as an elected Zemlia i Liudy (Land and People) scandal. that also included Mark Medish, senior official by “derailing” the Ukrainian leg- A company run in 1995 by Mr. islative process. Tkachenko, the Zemlia i Liudy Agro- director for Russian, Ukrainian and Oleksander Tkachenko Eurasian affairs at the National Security Other possible violations of the law by Industrial Association obtained, and then Council, and U.S. Ambassador to Ukraine Mr. Tkachenko, according to wire service lost, some $70 million of foreign agricul- association with Zemlia i Liudy provided Steven Pifer. reports, include “preventing access of the tural credits. The Procurator General’s him with any financial gain. The visit was a follow-up to a U.S.- majority of Parliament into the session Office had begun an investigation into alle- On January 31 UT-1 Ukrainian National Ukraine Binational Commission meeting hall,” “refusing to yield his seat to newly gations of graft by Zemlia i Liudy manage- Television – editorially highly supportive that took place in Washington in early elected government leadership” and “refus- ment, but dropped it in June 1998. of whoever is running the country – report- December 1999, noted Mr. Sestanovich and ing to yield government seals.” Most political observers saw that deci- ed that Messrs. Tkachenko and Martyniuk said, “At that time President Kuchma set All the alleged violations come under sion as stemming from Mr. Tkachenko’s had used parliamentary funds to purchase forth for President Clinton and Vice- Article 187-5 of Ukraine’s Criminal Code, insistence that a halt to the investigation be 14 limousines, some bullet-proof, worth President Gore his strategy for economic “hindrance in operation of a state establish- the main condition of his becoming chair- $3.5 million – most of which they report- reform in his second term.” ment,” Interfax reported Judge Zamovenko man of the Verkhovna Rada. Observers edly used for personal purposes. They stressed the importance of fighting as saying. believe that a deal was made with the Mr. Tkachenko denied that he misused corruption, creating greater transparency, Majority members Yaroslav Kendzior, Kuchma administration to end the then government funds or vehicles, saying that and supporting the rule of law in the new Yulian Yoffe and Bohdan Kosteniuk, con- two-month-long stalemate in the most of the cars were needed for parlia- institutions of Ukraine. sidered by most political analysts to be Verkhovna Rada that prevented the election mentary visitors or bodyguards. “Through measures of public adminis- close allies of President Leonid Kuchma, of a parliamentary leadership. Mr. tration reform, greater transparency, it filed the complaint against Mr. Tkachenko Tkachenko has repeatedly denied that his (Continued on page 18) becomes harder for policy to be distorted behind the scenes by the manipulation of special interests. It becomes harder for peo- ple to abuse power. And that’s an issue that Former U.S. official says issue of Ukraine’s security has been back-burnered friends of Ukraine take seriously. It’s an by R.L. Chomiak he characterizes this strategy as “con- to Ukraine over the past six years, and issue that the international financial institu- Special to The Ukrainian Weekly fused.” Kosovo, Bosnia and East was scheduled to travel there again on tions take seriously,” Mr. Sestanovich said. Timor, he noted, are on the “A list” of February 12. In his Sochor Parry lec- At the World Economic Forum in CAMBRIDGE, Mass. – The United issues, whereas he would put them on ture he focused on four trips he made Davos, Switzerland, U.S. Treasury States has a promise to fulfill in the his “C list.” These hot spots may to Pervomaisk, one of the facilities in Secretary Larry Summers, Mr. Sestanovich sphere of Ukraine’s security, but lately appear regularly on all-news networks, Ukraine housing long-range missles, and Mr. Medish had discussed with this issue has been pushed to the back but Dr. Carter does not see them as top where in 1994 there were 700 nuclear President Kuchma his economic agenda. burner, accordins to one of the authors problems for the United States. The A warheads targeted on the United States. “Secretary Summers commended the of this promise. list he said, includes “the part of the At that time, he noted, Ukraine was president on working closely with the IMF Ashton Carter, professor of science world where Ukraine is,” international the third largest nuclear power in the and World Bank in developing this pro- and international affairs at Harvard terrorism and China. (His B list, inci- world – more powerful than France gram. We have already mentioned one of University’s Kennedy School of dentally, includes the Persian Gulf). and China – “but Ukraine elected to the key elements, the management of exter- Government, spoke February 7 at the The A list issues are not of imminent nal debt, but there are others: the formula- enter the world as a non-nuclear state.” inaugural Zenovia Sochor Parry military threat, he said, but they are The American side suggested bringing tion of realistic budget, privatization, public Memorial Lecture at Harvard. During “problems that if not addressed, will administration reform, and others. We think Russia into the negotiations on the first Clinton administration (1993- grow.” He and his former boss William Ukraine’s non-nuclear security, and there are some very good early signs on this 1996) Dr. Carter served as assistant sec- Perry, who was secretary of defense, front. But there’s still a good deal of work Ukraine agreed. (The Russians, he said retary of defense for international securi- are co-directors of the Stanford- half in jest, were even more concerned to be done, and the key is implementation,” ty policy, and was intimately involved in Harvard Preventive Defense Project. Mr. Medish said. about Ukraine’s nuclear status than the helping Ukraine become a non-nuclear They also have published a book, “This is really a time of strategic oppor- Americans, “because the Ukrainians state, with American and Russian guar- “Preventive Defense,” in which tunity for Ukraine: To push forward with had a reason to attack them.”) The antees of Ukraine’s security. Ukraine is one of the case studies. The long-delayed reforms in critical areas. If result was the trilateral agreement Now back in academia, Dr. Carter is idea explained Dr. Carter, is the same you take a broad look at 10 years of experi- among the United States, Ukraine and concerned that Ukraine’s security is not as in preventive health care: rather than ence with economic transition across Russia to guarantee Ukraine’s security receiving the attention it deserves with- treating an illness you try to prevent it. Central Europe and Eurasia, one can see a in American security strategy. In fact Dr. Carter has made numerous trips (Continued on page 4) (Continued on page 18) 2 THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 20, 2000 No. 8 ANALYSIS NEWSBRIEFSNEWSBRIEFS No resolution in sight for Ukraine Ukraine offers debt restructuring terms reserves seem larger than they were. “Such a transaction would clearly violate the spirit by Jan Maksymiuk tion threat in two months, following the KYIV – Prime Minister Viktor RFE/RL Poland, Belarus and Ukraine Report April referendum (which many regard as of Ukraine’s [IMF loan] because it would Yuschenko and Finance Minister Ihor have enabled the National Bank of Ukraine a mere formality in passing a vote of no Mitiukov made an offer in London on PRAGUE – By choosing Ivan Pliusch confidence in the legislature as a whole).