INSIDE:• Third U.S. ambassador to Ukraine is sworn in — page 2. • Golf in Kyiv? Yes, if a developer has his way — page 3. • Tale of a newly discovered sonata— page 9. Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXVI HE No.KRAINIAN 3 THE UKRAINIAN WEEKLY SUNDAY, JANUARY 18, 1998 EEKLY$1.25/$2 in Ukraine National Bank of Ukraine seeks T U Verkhovna RadaW ratifies treaty with Russia, to control value of national currency setting the stage for a new relationship by Pavlo Politiuk Mr. Hetman added that announcing a by Pavlo Politiuk port of Sevastopol, which became part of Special to The Ukrainian Weekly new corridor is not admitting defeat of the Special to The Ukrainian Weekly independent Ukraine. currency policy Ukraine has pursued during “The treaty means the affirmation of KYIV – The National Bank of Ukraine the past several years. He said the hryvnia KYIV – Ukraine’s lawmakers gave the territorial integrity and inviolability and the government soon will announce a remains strong and the NBU has more themselves a lengthy standing ovation on of borders of Ukraine and Russia, and in new yearly currency corridor, which should reserves than at the beginning of 1997. January 14 after voting 317 to 27 to rati- this way all questions about territorial guarantee foreign investors predictable con- “The NBU spent about $800 million for fy the Treaty on Friendship, Cooperation ownership of Sevastopol and Crimea are ditions in 1998. supporting the hryvnia in the last two and Partnership with the Russian removed,” Ukrainian Prime Minister Ukraine’s authorities declared that the months of 1997, but I hope that in 1998 Federation, which forms new conditions Valerii Pustovoitenko told lawmakers future one-year projected delineation of the Ukraine will not be touched by the heavy for a relationship with Ukraine’s largest before the vote. value of the Ukrainian hryvnia against for- consequences of the world’s financial cri- economic partner. The signing of several Black Sea Fleet eign currencies marks a continuation of sis,” he said. Ukrainian Foreign Affairs Minister agreements days before Presidents government efforts to support the hryvnia On the other hand, a leader of the Hennadii Udovenko presented the docu- Yeltsin and Kuchma signed the big treaty as the base for long-awaited economic and Reforms faction in the Verkhovna Rada, ment to lawmakers for their approval and had set the stage for the final document, structural reforms. Serhii Teriokhin, thinks that Ukraine has urged them to ratify the treaty, saying it but some Ukrainian lawmakers charged “All our measures, including the corridor perspectives for 1998 and that inflation may will build a legal base for economic President Kuchma and his government for 1998, are aimed at stabilizing and jump soon, because the large state deficit cooperation with Russia, which accounts with making a lot of concessions during strengthening the Ukrainian currency,” said and heavy wage debt again are seriously for 47 percent of Ukraine’s exports. National Bank advisor Viktor Lysytskyi. talks with Russia, including allowing undermining the country’s economy. Olexsander Razumkov, vice-chairman Russian forces to remain on Ukrainian The bank had previously announced a “We can return to the time of hyper- of Ukraine’s Security and Defense trading range for only the first half of 1998 land in Crimea. inflation,” Mr. Teriokhin said. His opinion Council, said “The treaty is very impor- National-patriotic factions tried to have – a range that most believed the bank is supported by Oleksandra Kuzhel, vice- tant for us. We have very strong econom- couldn’t defend. It was widely expected the Treaty on Friendship, Cooperation chairperson of the Parliament’s Economic ic interaction with Russia, and economic and Partnership and the Black Sea Fleet that a broader range for the currency would Committee, who said the new corridor can cooperation without a political base is be announced, along with pledges to defend agreement discussed jointly. They hoped mean only that the government cannot sup- impossible.” that by linking the big treaty with the that range until the end of the year. port the hryvnia in the future. The political treaty was signed by The National Bank of Ukraine (NBU) more controversial BSF pact, both would The bank already has shown that it can Ukrainian President Leonid Kuchma and sink. was unable to support the hryvnia within its protect the national currency, however. The Russian President Boris Yeltsin on May declared corridor in November 1997, when “We demand a criminal investigation hryvnia strengthened and rebounded within 31, 1997, after more than five years of against persons who took part directly in panic selling in emerging markets world- the corridor in December 1997, after the discussion between the neighboring wide sparked a flight from the Ukrainian the process of preparing this Black Sea bank announced a package of measures to nations’ politicians. Fleet agreement,” said National Deputy currency. In interbank trading, the hryvnia defend the currency, including higher inter- Ever since Ukraine became indepen- fell as low as 2.0 hrv to $1 (U.S.), well Yurii Orobets, a member of the Reforms est rates and reserve requirements on banks. dent in 1991, its leaders had worked with faction in the Verkhovna Rada. below the lower limit of the bank’s corri- But investors remain skeptical that the Russia to sign an agreement on friend- dor, at 1.90 hrv. But the effort to unite the treaties for bank can hold the hryvnia within its earlier ship, but Russian President Boris Yeltsin ratification was not supported by a par- Before the New Year, NBU Chairman announced currency corridor for the first had postponed his visit six times, citing Viktor Yuschenko said the Ukrainian trea- liamentary majority. half of 1998. At the end of 1997 the bank the unresolved dispute over the former Representatives from centrist factions sury market, after an autumn collapse, promised to hold the currency at between Soviet Black Sea Fleet and particularly needs a stable currency for 1998 and that 1.75 and 1.95 hrv to $1. the status of its main base, the Crimean (Continued on page 16) the full-year corridor can guarantee this sta- bility. Mr. Yuschenko said the bank has already had some success stemming the exodus of investors, money from the trea- sury bill market, a key source of budget EPCOT gives green light to Ukrainian pavilion project financing whose troubles influenced the by Natalia Warren virtually every other ethnic group. We have beautiful folk art hryvnia scare. Special to The Ukrainian Weekly and a distinctive cuisine. Our homeland and our culture He said domestic buyers were returning, would be interesting to people everywhere, and this is a if not the foreign investors frightened off LAKE BUENA VISTA, Fla. – Taras (Jason) Harper, wonderful opportunity for the Ukrainian people to put on a first by decreasing yields and then by fears president of the Ukrainian Project Fund and an employee of display for the entire world,” he added. of a hryvnia collapse. Walt Disney World, has been given the green light by An estimated 400 to 500 million people will be exposed According to Mr. Yuschenko, a single EPCOT Vice-President George Kalogridis to spearhead the to the pavilion structures. Michael Eisner, chairman of the corridor throughout 1998 will show that the EPCOT Millennium Celebration – Ukraine Initiative. board and CEO of the Walt Disney Co., has mandated that NBU can protect the hryvnia and return for- However, Mr. Harper may be running out of time as a all branches of the Walt Disney Co. be focused on EPCOT eign investors’ faith in Ukraine’s future February 1 Disney-imposed deadline approaches. for the entire 15 months of the Millennium Celebration. economic prospectives. From October 1999 until January 2001, the EPCOT These branches include ABC Television, the Arts and “We are not rejecting our policy of sup- theme park, part of the 44-square-mile Walt Disney World Entertainment Network, the Discovery Channel and ESPN, porting the Ukrainian national currency,” complex, will host an enormous Millennium Celebration among others. said Mr. Lysytskyi. with the educational entertainment (“edu-tainment”) theme According to Mr. Harper, the Walt Disney Co. and Mr. But experts said the new corridor will of “Hope for a Better World.” Joining the current display of Kalogridis would very much like to see Ukraine represented mean softer conditions for the bank and the countries in EPCOT will be dozens of new pavilions that at this Millennium Celebration. In a letter sent to potential government in their support of the hryvnia. will showcase the many different aspects of each nation in corporate sponsors, Mr. Harper noted that, “of all the Slavic They expect that it will be between 1.75 support of the overall theme. nations, there is perhaps no greater example of explosive and 2.2 hrv to $1. The pavilions, which will average approximately 3,000 growth potential and intellectual excellence than Ukraine. “The National Bank needs a new corri- square feet and will include food, entertainment, artisans, And as Disney turns its focus on the counties that will pro- dor, a wider corridor, whose upper limit and audio-visual , architectural and interactive displays, are vide hope for a better world, Ukraine would be an ideal may be about 2.2 hrv to $1 because it pro- estimated to cost between $800,000 and $2 million each. choice,” he added. vides room for maneuvering and protection “Ukraine is the only former Soviet bloc country that has But time may be running out. The Disney Co. has set a against pressure from Parliament and min- been approached to participate in EPCOT’s millennium cel- isters,” said National Deputy Vadim ebration,” noted Mr.