www.ukrweekly.com INSIDE:• The Lazarenko investigation continues — page 2. • Follow-up on Chre´tien visit to Kyiv — page 3. • Kyivans celebrate feast of Epiphany — page 5. Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXVII HE KRAINIANNo. 6 THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 7, 1999 EEKLY$1.25/$2 in Ukraine Pustovoitenko travels to Washington T U Kuchma returnsW from Davos assured to seek continued funding from IMF that Ukraine will receive international aid by R.L. Chomiak by Roman Woronowycz dent met with U.S. Vice-President Al Special to The Ukrainian Weekly Kyiv Press Bureau Gore, Russia’s Prime Minister Yevgenii Primakov and other leaders of major WASHINGTON – Prime Minister KYIV — Ukraine’s President Leonid Western democracies, as well as directors Valerii Pustovoitenko of Ukraine came to Kuchma returned from the annual World from the IMF and the World Bank. Washington on February 2 to seek Economic Forum in Davos, Switzerland, The World Economic Forum is a gath- money from the International Monetary held this year on January 28-30, satisfied ering of the world’s political and busi- Fund’s Extended Fund Facility program. with his discussions with world leaders ness leaders. This year’s session put an But, he came also to promote the re-elec- and more certain that Ukraine will con- accent on reviewing current world finan- tion of Leonid Kuchma as president this tinue to receive the international aid it cial structures with the possible goal of a October. desperately needs to avert a financial major revamp. “We need the EFF money more than crash. However, as businessmen and politi- ever,” he told members of the Ukrainian “I realized that Ukraine will be assist- cians of the developed nations discussed community invited to the Embassy of ed, and this is very important,” said Mr. how to make capital flow in the global Ukraine at the end of the first day of his Kuchma upon his return on January 30. village more efficient, President Kuchma two-day visit, explaining that Ukraine He added that he discerned while in concentrated on how to get it to pour into must make payments on its earlier loans Davos that “the international community Ukraine more frequently and with greater this quarter, and the EFF money would feels that it has a stake in cooperation amplitude. help keep Ukraine’s monetary system with Ukraine.” In a meeting with World Bank stable. Ukraine has a mounting pile of finan- Managing Director Caio Koch-Weser, He was unabashed in promoting the cial debts – some $11 billion worth – Mr. Kuchma discussed additional re-election of President Kuchma, even from treasury bonds it issued in the last money for Ukraine from that financial suggesting that Ukrainian Americans two years, many of which are due to organization. According to Interfax- contact their relatives in Ukraine and mature this year. It needs credits prom- Ukraine, Mr. Koch-Weser stated his explain to them the Ukrainian govern- ised by several financial organizations, support for continued implementation of ment’s main goal: “We should do every- Prime Minister Valerii Pustovoitenko including the International Monetary a project to expand private entrepreneur- thing to make our people’s life better.” Prime Minister Pustovoitenko did Fund, to help ease its debt burden. ship in Ukraine and voiced his belief He said a political association called point out that more than 900 American However, the IMF has suspended its pro- that Ukraine would receive a scheduled Zlahoda (Concord) was established gram with Ukraine until it reviews companies are doing business in Ukraine second tranche in April. The World recently to unite all the people who want Ukraine’s fulfillment of its obligations in and only nine have unresolved com- Bank director, voiced his concern, how- to strengthen Ukraine’s statehood. Its plaints, yet these few cases continually regard to economic reforms. leadership, in addition to Mr. come up at the highest levels of U.S.- While in Davos the Ukrainian presi- (Continued on page 5) Pustovoitenko, includes former President Ukraine talks. In a somewhat sarcastic Leonid Kravchuk, former Parliament aside, the prime minister said, “We Chairman Ivan Pliusch, National Bank of should learn from the Americans about Ukraine Chairman Viktor Yuschenko, how to fight for the interests of private Tkachenko takes his message and Yuri Shcherbak, former ambassador businesses abroad.” to the U.S. and now President Kuchma’s He did concede, however, that foreign affairs adviser (Mr. Yuschenko Ukraine’s court system is among its of “Slavic unity” to Belarus and Ambassador Shcherbak were mem- weak spots, but added that even here by Roman Woronowycz brations in Kyiv last year. bers of the prime minister’s delegation, progress has been made: recently several Kyiv Press Bureau In Miensk, the capital of Belarus, Mr. as was Finance Minister Ihor Mitiukov local officials were arrested in Crimea Tkachenko held out hope that Ukraine and other officials.) The Zlahoda associ- and charged with corruption. KYIV — More comments made by would soon join the union of its two ation, he said, will work for President There is insufficient understanding in Ukraine’s Verkhovna Rada Chairman northern neighbors, which was signed Kuchma’s re-election. the U.S. of what Ukraine has accom- Oleksander Tkachenko – this time in last year between Belarusian President Prime Minister Pustovoitenko said his plished, complained the prime minister. Belarus on January 28 – that Ukraine Alyaksander Lukashenka and Russian government, has done everything to He noted that Ukraine’s revenues have needs to join the Belarus-Russia union President Boris Yeltsin. In the mean- assure a good harvest this year, including increased last year over those of 1997; have caused another stir among political time, he called for the development of a purchasing for the agricultural sector several free economic zones have been leaders in Kyiv. Even a leading member common economic and customs system. 1,000 tractors made in Ukraine (some at created to attract foreign investors; of the Communist Party expressed Mr. Tkachenko also called for initiat- the Pivdenne rocket plant in Ukraine’s economy has been stabilized doubt about the need for such a move. ing the process via the creation of com- Dnipropetrovsk, jointly with the despite the effects of the Russian finan- While addressing a general session of mercial missions and the development American company Case). The reason: cial crisis last year thanks to the efforts the Belarusian Parliament on January of increased economic and trade rela- after the harvest comes the election, and, of the National Bank, the government 28, the Ukrainian Parliament leader said tions through the establishment of most- if the harvest is good, the election will go and President Kuchma. Stability is what Ukraine should follow the path of favored-nation trade agreement. well. Ukraine needs to preserve its statehood, Belarusian-Russian integration. “The At a meeting with President The Ukrainian leader did not want to he emphasized. Mr. Pustovoitenko also strength of the Slavic fraternity has been Lukashenka, who also has repeatedly say much about the possibility of a cut in praised the government’s Ukraine 2010 tested on many occasions,” said Mr. called for merging Ukraine with Belarus this year’s U.S. aid to Ukraine. Congress program, which is to lead Ukraine out of Tkachenko, according to Interfax- and Russia, Mr. Tkachenko praised the wants Secretary of State Madeleine K. economic hardship by that year. Ukraine. “We suffered defeats when we controversial leader who rules Belarus Albright to certify by February 18 that The prime minister pooh-poohed concentrated on individual national with a strong hand. “Belarus serves as Ukraine has made progress on economic recent predictions by the Global interests, so let us do everything possi- an example of how to preserve the best reforms and on resolution of complaints Intelligence Service that Ukraine’s eco- ble to ensure that our people steadily of what was previously present,” he said by American companies operating in nomic crisis will push it into Russia’s advance toward a greater goal.” in an obtuse reference to the long- Ukraine before it approves the full arms. He said that last May he saw that Mr. Tkachenko had previously defunct Soviet Union. amount of assistance. media outlet’s prediction that Ukraine referred to a “great Slavic brotherhood” Although, Mr. Tkachenko softened Having met with Secretary Albright will collapse by October 1998. “We have and a union of Russia, Belarus and his remarks upon his return to Kyiv’s that morning, he gave his Ukrainian survived, and we will survive. Let them Ukraine during a December visit to community audience the impression that Moscow and at Independence Day cele- (Continued on page 8) certification was far from assured. (Continued on page 5) 2 THE UKRAINIAN WEEKLY SUNDAY, FEBRUARY 7, 1999 No. 6 ANALYSIS NEWSBRIEFSNEWSBRIEFS Lazarenko investigation continues Federation Council stalls treaty approval ... warns Russian crisis poses dangers by Lily Hyde granted exclusive contracts to distribute nat- MOSCOW – State Duma Chairman KYIV – President Leonid Kuchma on RFE/RL Newsline ural gas to one-third of Ukraine during Mr. Gennadii Seleznev told reporters on January 29 said that the Russian financial Lazarenko’s term in office, from June 1996 Despite an ongoing investigation into January 27 that the Russian Duma may crisis creates political dangers and econom- to July 1997. In 1996 UES made a profit send the Russian-Ukrainian Treaty of ic problems for Ukraine, an RFE/RL corre- former Ukrainian Prime Minister Pavlo totaling $1 billion, but paid less than $6,000 Lazarenko, who is suspected of corruption, Friendship, Cooperation and Partnership to spondent reported from Davos, in taxes.