UKRINFORM NEWS AGENCY

  NEWS FROM UKRAINE

President Viktor Yushchenko means to propose President Vladimir Putin of Russia to sign intergovernmental agreements on simplifying the procedure of obtaining citizenship and border crossing regime during their upcoming meeting, the presidential press service told Ukrinform.

Being interviewed by the Russian mass media, President Viktor Yushchenko listed several topics to the future negotiations, among which there are the functioning of the international gas consortium, a free trade zone within the Integral Economic Space and cooperation in high-tech areas.

President Yushchenko didn't rule out the discussion of readmission-related matters. According to him, some 9,000 illegal refuges come to Ukraine from Russia annually.

As Ukrinform earlier reported, the Russian President will visit Ukraine on March 19.

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First Vice Prime Minister Anatoli Kinakh met with US Extraordinary and Plenipotentiary Ambassador to Ukraine John Herbst, the Vice Prime Minister's press service told Ukrinform on Thursday.

The parties to the meeting discussed Ukrainian-US cooperation. The sides particularly focused on deletion of the Jackson-Vanik Amendment, rendering a market economy status to Ukraine and signing a bipartite protocol on mutual access to markets of goods and services between Ukraine and the USA and the promotion of Ukraine's accession to the WTO. Ukraine's readiness for the facilitation of investment and trade-economic cooperation with the American business was stressed.

As Anatoli Kinakh noted, the Ukrainian Govt means to step up moves to speed up Ukraine's acquiring the market economy status, "including moves to adopt legal acts with regard to proper securing intellectual property rights, which would correspond to the norms of the international law" as well as strengthening trust  between the American and Ukrainian businesses.

As the Ukrainian First Vice Prime Minister told the US Ambassador, the Govt will realize its policy, directed at establishing a civil society in Ukraine, consolidating the supremacy of law, creating conditions for equal and transparent competition, enhancing business security, protecting owner and investor rights and combating corruption and smuggling in Ukraine. "We do realize that this is the way to provide Ukraine's efficient economic and political integration", Anatoli Kinakh stressed.

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Ukrainian Vice Prime Minister Mykola Tomenko condemns a position by some former officials who reject to bear responsibility for the activity of institutions, which they chaired. "I have an impression that until recently the State had been governed by a blind authority", he stated by way of commenting on the situation with regard to numerous cases of budgetary misappropriation, which occurred during previous years, the Vice Prime Minister's press service told Ukrinform.

As Mykola Tomenko noted, "tremendous misappropriation in medicines, eye glasses, humanitarian aid, etc is being discovered every day", and this is only in the humanitarian sphere.

As he reminded, dozens of cases on misappropriation have been filed with the Prosecutor General Office.

Mr Tomenko sounded indignant at former ministers and other officials who pretend not to see, to hear and to bear responsibility for their signing so to say tenders, following which budgetary means, allocated for purchasing necessary goods, were disappearing.

 According to the Vice Prime Minister, law-enforcement bodies should respectively assess such moves by the former top officials.

***

The Verkhovna Rada ceased Oleksandr Zinchenko's deputy authorities ahead of schedule in connection with his appointment to position of State Secretary of Ukraine.

The Verkhovna Rada ceased deputy authorities of Volodymyr Skomorovsky, who was appointed Head of the State Customs Service  and those of people's deputy Vasyl Chervoniy, in connection with his appointment to position of Head of the Rivne Regional Administration.

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Following adoption of a decision about appointment to positions in the executive power, 25 people's deputies are combining their positions with deputy mandates, Head of the Verkhovna Rada Committee for rules and deputy ethics Valentin Matveyev said at the Verkhovna Rada's morning session on Thursday.

The Ministerial portfolio and the deputy mandate are combined by Emergency Management Minister David Zhvania, Minister for education and science Stanislav Nikolaienko, Foreign Minister Borys Tarasiuk and Minister for transportation and communication  Yevheni Chervonenko.

Applications about surrender of deputy mandates were not submitted by NSDC Secretary Petro Poroshenko, Security Service Chairman Oleksandr Turchynov, NaftoGaz Ukrainy Head Oleksi Ivchenko, National TV Company of Ukraine Head Taras Stetskiv and Director of the National Institute of Strategic Studies Ihor Hryniv.

Valentin Matveyev also reminded that heads of the Zaporizhia, Chernihiv, Transcarpathian, Volyn, Poltava, Kyiv, Lviv, Ternopil, Odesa regional administrations and the City of Sevastopol administration did not surrender their deputy mandates.

The Committee Head informed the session that letters were sent to all the aforementioned deputies with a request to determine their place of work, but those letters were not answered. The Committee made a decision to recommend to Volodymyr Lytvyn to apply to the court within a 10-day period about a pre-term surrender of deputy mandates by the aforementioned deputies.

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The reorganization of the information policy service is underway at the Secretariat of the President of Ukraine. Its activity is expected to be focused on several key directions, among which there is ensuring fulfillment of the President's authorities in the information sphere, a commentary by Deputy State Secretary Markian Lubkivsky said on Thursday.

The information policy service is to draft and submit for the President's consideration proposals with regard to improving the information space, with a view of creating proper conditions for the free functioning of the mass media. This part of the work is extremely important, taking into account the role, which the President assigns to the freedom of the mass media, Markian Lubkivsky stressed.

Much attention will be paid to the actual realization of the constitutional rights of citizens to free access to information.

Another important direction, which was ignored by the previous administration, is the activity, connected with Ukraine's image in the world and spreading information about Ukraine's history, modern development and achievements.

Among the information policy service's prime task there is the resumption of the activity of the information policy council under the President of Ukraine and realization of a series of initiatives in turning the mass-media into non-state-run enterprises and holding consultations with media-experts on improving the functioning of Ukraine's information space.

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Ministry for matters of youth and sports is supposed to present a program of its activities on April 18, Minister Yuri Pavlenko said at a meeting with students of the National Physical Culture and Sports University on Thursday, where he was introduced by President Viktor Yushchenko.

According to Yuri Pavlenko, the Ministry "managed to take all necessary steps towards reorganization" and it is ready to fulfill tasks, put by the President. He noted that since the present day not discussions, but work over realization of state policies would start.

 The Minister informed Viktor Yushchenko that a Public Collegium is being formed under the Ministry, including five standing working groups. One of them, engaged in youth policies, has already started its work. At present the  "draft youth doctrine was developed, which will be approved by a general meeting of youth organizations". Yuri Pavlenko expressed his conviction that cooperation between the State and public organizations, which are active partners, gives a possibility to present concrete results within a period of 12 months.

Besides, according to Yuri Pavlenko, relevant committees on matters of homeless children and problems of adoption, as well as on matters of mass sports, physical education and Olympic sports will be created at the Ministry within the framework of the Public Collegium.

While introducing the new Minister, President Viktor Yushchenko characterized him as a man having a kind soul and striving to make system changes in the Ministry. The Head of State also called on everyone, who is engaged in matters of youth, family and sports, to help the new Minister and to take him as a partner.

Yuri Pavlenko, in his turn, noted that the main criteria of estimating the Ministry's activities, besides the corresponding work results, would be the principles "no lies and no theft".

***

First Deputy Chairman of the State Tax Administration Mykola Katerynchuk was introduced the STA staff on Thursday.

Having noted that Mr Katerynchuk is "a professional jurist and reliable person", STA Chairman Aleksandr Kireev expressed his hope for his deputy's active work over reforming the tax service.

Mykola Katerynchuk will be competent for the tax police, combating corruption within the STA, investigation and juridical departments, appeal consideration and improvement of taxation legislation.

***

A credit agreement on the Boryspil Airport development project between the Japan Bank for International Cooperation and the Cabinet will be signed on April 29. Such an arrangement was reached during a meeting between the First Vice Prime Minister Anatoli Kinakh and Japanese Ambassador to Ukraine Kishichiro Amae.

On March 29 an exchange of notes between the Governments of Ukraine and Japan about granting Ukraine a credit is supposed to take place. Finance Minister Viktor Pynzenyk and First Vice Prime Minister Anatoli Kinakh will sign the document on behalf of Ukraine. As Anatoli Kinakh noted, the Boryspil reconstruction project is one of priority projects for Ukraine, since it is regarded "as a part of Ukraine's integration with the world economic community".

The First Vice Prime Minister expressed hope that the program of the Japanese Government's official aid to Ukraine, including the Boryspil Airport reconstruction project, will be expanded and will promote realization of other perspective and mutually beneficial projects.

Great attention was paid to President Viktor Yushchenko's oncoming visit to Japan, which is slated to the first half of 2005. According to prior arrangements, during Viktor Yushchenko's visit to Japan, a meeting of Ukrainian and Japanese businesspeople will be organized.

***

On Thursday a two-day forum "Teach to the Future" started its work at the Kyiv University's Institute of International Relations. It was organized by the Intel Corporation jointly with the Ministry for education and science, the Scientific and Methodological Center of secondary education and the Central Institute of post-graduate pedagogical education.

Within the framework of the forum current results of realization of the world charitable program "Intel. Teach to the Future" will be discussed, the aim of which is instructing school teachers in methods of using information technologies in an educational process. A seminar for coordinators and teachers-instructors on the program will also be held.

On Thursday a ceremony of awarding the best regional instructors and teaching centers, as well as regional administrations, which were most active in supporting the program "Intel. Teach to the Future" in Ukraine, was staged. Within the framework of the program, which started in January 2004 in Ukraine, 13 regional teaching centers were opened and about 290 other teaching centers, where over 10,000 teachers and lecturers of pedagogical higher educational institutions were trained.

The teaching program was translated into Ukrainian and adapted to the state standards. The program "Intel. Teach to the Future" received 98.7 positive response on the part of its participants. In 2005 another 14 regional teaching centers are supposed to be opened, where another 15,000 of teachers and lecturers may be trained.

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Presidents Viktor Yushchenko of Ukraine and Vladimir Putin of Russian will meet tete-a-tete on March 19, the presidential press service told Ukrinform on Thursday.

The Ukrainian and Russian Presidents are expected to attend the opening of the "Vneshtorgbank (Ukraine)" (Bank for Foreign Trade) and stage a joint press conference.

The Russian Head of State is also supposed to meet with Verkhovna Rada Chairman Volodymyr Lytvyn and Prime Minister Yulia Tymoshenko.

***

President Viktor Yushchenko met with Chairman of the Board of Governors of the European Jewish Congress Viacheslav (Moshe) Kantor, the presidential press service told Ukrinform.

As the Ukrainian Head of State noted at the meeting, there will never be "national issue" in Ukraine and condemned any manifestations of xenophobia and anti-Semitism.

The parties discussed the likelihood of holding the second world forum of Holocaust in Ukraine in November 2007, which would be devoted to the history of Babyn Yar and Holocaust. As the Ukrainian President noted, the event should be accompanied with an educational program, with a view of attracting much attention of the society to this tragic history.

***

As President Viktor Yushchenko believes, the activity of the football club "Dynamo" should be more transparent.

By way of commenting on the conflict situation around the club to the Russian mass media, the President said that the club's past didn't guarantee the club stability, the presidential press service told Ukrinform.

As the President noted, "there were serious financial operations with some football players, of which tax bodies were not aware".

According to the President, he has instructed Vice Prime Minister Mykola Tomenko and Youth and Sports Minister Yuri Pavlenko to regularly brief him on the events around the club. "We can't allow that the club loses its dynamics and the events adversely influence the club's sport activity", the President said. He stated his intention to pose himself as a side to ensure legal, lawful and public form of conflict settlement.

***

Vice Prime Minister Mykola Tomenko stressed the need to reorganize the National Academy of Public Administration under the President of Ukraine at a meeting with the Academy students, the Vice Prime Minister's press service told Ukrinform.

He sharply criticized the Academy's training system and distance education system.

As he said, he will report to the President on the need to reorganize the Academy into the National Academy of Public Administration and Local Self-government under the President of Ukraine.

***

Vice Prime Minister Roman Bezsmertny presented a model of the administrative-territorial reform at the 10th All-Ukrainian municipal hearings "Principles of local self-government under new political conditions", which is being held in Sudak, Crimea,  Roman Bezsmertny's press service told Ukrinform.

Speaking at the meeting, Vice Prime Minister made public the following system of territorial division of the State: a community with a population of no less than 5,000 citizens, a district with a population of no less than 70,000, a city-district-community, which includes at least one city with a population of no less than 70,000, a city-region with a population of no  less than 750,000, a region-oblast, the Autonomous Republic of Crimea and the cities-regions.  The model of this reform is reflected in the bill "On the Territorial Division of Ukraine".

As Roman Bezsmertny noted, the novelty of administrative-territorial reform's philosophy consists in "maximum delegation of authorities to local self-government bodies: the more authorities - the more responsibility". According to him, the basic principle of its carrying out is "the reform starts from below, rather than from above", i. e. the first stage of reformation is at the level of communities and districts". If it appears to be possible to carry out a quality reformation at this level, then optimization of the regional division will be a formality, a certain improvement of actually carried out reform of the administrative-territorial division, the Vice Prime Minister stated.

He expressed his conviction that the suggested model of the administrative-territorial reform will "promote urbanization processes and will optimize budget distirbution to the regions". The reform should be carried out quickly, since imperfect territorial division hampers social and economic development of the regions, Roman Bezsmertny believes.

***

The Verkhovna Rada pre-termly ceased deputy authorities of Borys Tarasiuk and Evhen Chervonenko in connection with their appointment the Ministers.

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On Thursday people's deputies adopted several resolutions on holding parliamentary hearings.

In April 2005 hearings will be held, concerning "Freedom of conscience and identification of personality". For holding parliamentary hearings on this theme 227 people's deputies voted.

In June parliamentary hearings on the theme "Prospects of development of the fuel and energy complex of Ukraine" will be held. For holding those hearings 283 people's deputies voted.

The largest number of deputies, 313 persons, voted for parliamentary hearings on the issue of  "Power decentralization in Ukraine. Widening of rights of local self-government".

A resolution was adopted on holding parliamentary hearings on the issue of an information society development in Ukraine in September 2005.

The people's deputies adopted a resolution on the Cabinet's measures for organization of children's recreation in the summer of 2005 and on development of the International Children's Center Artek.

The Verkhovna Rada continued its plenary session at 16:00 local time on Thursday. It was supposed to start the session from discussing the bills, presented by the President on strength of the Ukrainian Armed Forces for 2005 and on military service terms.

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The People's Party takes a proposal by the "Our Ukraine" bloc to go for the 2006 elections in one bloc as an honor, a member of the People's Party Oleg Zarubinsky told a Thursday press conference. As he said, trust by the political force, which leader became the President of Ukraine, is very honorary and responsible.

Still, he added that the proposal will be discussed at regional forums and the final resolution will be passed at the party's convocation.

***

Preparations for a visit by Russian President Vladimir Putin are underway, Ukrainian Foreign Minister Borys Tarasiuk told journalists on Thursday.

According to him, the one-day visit's much time will be devoted to bipartite negotiations between the Ukrainian and Russian Presidents.

The Ukrainian side pins much expectations on the visit, hoping that the visit will become an important landmark in the development of the Russian-Ukrainian relations, which surely excite not only the Ukrainian and Russian societies, but the world community, as well. "Judging from the Ukrainian President's previous international contacts and from my personal experience, I may say that our international partners are interested in a constructive dialogue between Ukraine and Russia", Borys Tarasiuk noted.

According to him, the Ukrainian side drafted a series of proposals and hopes that a number of issues, which have been accumulated for years, will be settled.

***

The Ukrainian parliament has approved amendments to the law entitled “On General Military Duties and Military Service,” reducing the period of compulsory service in the Ukrainian Armed Forces.

The amendment will apply to the citizens who will be called up for military service in autumn 2004.

It stipulates that military personnel can start contract service in the army after at least 6 months of compulsory military service instead of 12 months.

The amendment also increases the age of acceptance for contract service in the army to 40 years.

The amendments reduce the period of compulsory military service from 18 to 12 months for soldiers and sergeants, from 24 to 18 months for sailors and master sergeants, and from 12 to 9 months for people holding higher education degrees.

***

Ukraine’s Ambassador to Nigeria Oleh Skoropad has met with Nigeria’s Commerce Minister Idris Waziri to discuss ways of stepping up economic cooperation between Ukraine and Nigeria.

According to the press service of the Ukrainian Foreign Affairs Ministry, Mr. Waziri stated Nigeria’s interest in acquiring high-quality Ukrainian equipment that is easy to use and service, including Ukrainian tractors, trucks, agricultural machinery, electric generators, and agricultural processing technologies.

The two men said that the necessary conditions have been created for increasing the trade turnover between the two countries.

In this context, Mr. Waziri expressed satisfaction with Ukraine’s initiative on creation of a Ukrainian-Nigerian business council and Chamber of Commerce in Abuja in the near future.

He also expressed approval of Ukraine’s proposal to organize an exhibition entitled “Industrial Ukraine” in the first half of 2006 with the participation of leading Ukrainian enterprises and companies.

Mr. Waziri also expressed readiness to lead a Nigerian business delegation to Ukraine in the second half of 2005 to present Nigerian economic projects and investment opportunities.

***

Turkey’s honorary consulate in Simferopol started operation on Thursday.

Turkey’s ambassador to Ukraine participated in the consulate’s opening ceremony.

According to him, the aim of the Turkish honorary consulate in Simferopol – which is the third in Ukraine – is to facilitate development of trade, economic, cultural, and scientific ties between Turkey and the Crimea as well as to develop friendly ties between Turkey and Ukraine and protect the interests of Turkish citizens in the Crimea.

***

The process of inter-agency adjustment of issuance or rejection of visa to Russian businessman Boris Berezovsky (Platon Yelenin) goes on, Ukrainian Foreign Minister Borys Tarasiuk told journalists on Thursday.

As he noted, the matter is not exclusively in the competence of the Foreign Ministry.

***

Ukraine is not a member of the CIS, but only its participant, Ukrainian Foreign Minister Borys Tarasiuk noted on the eve of his trip to Minsk, Belarus to a session of the CIS Council of Foreign Ministers.

As he told journalists, the session will consider the package of documents with regard to cooperation among CIS member-states in combating terrorism, illegal migration, taxation crimes, military matters, education, humanitarian sphere and CIS reorganization-related matters.

Under the established tradition, the Ukrainian side will sign only those documents, which correspond to its national interests. The Foreign Minister promised to back documents in the sphere of combating crimes, terrorism and illegal migration.

As Mr Tarasiuk said, the Friday session will tackle a concept document on the unified system of the information marking of explosives, ammunition and fire-arms in CIS countries. In connection with the long procedure of the internal state adjustment, on this stage Ukraine will refrain from its signing.

***

Ukrainian Foreign Minister Borys Tarasiuk unambiguously promised the rotation of the Ukrainian envoys abroad at a Thursday press conference, answering a question with regard to likely replacement of chiefs of Ukrainian diplomatic missions abroad and, particularly, Ukrainian Ambassador to Russia Mykola Biloblotsky.

As the Foreign Minister noted, the change of the envoys is connected not only with the new power, but also with a scheduled rotation. As he noted, the Ukrainian Foreign Ministry is analyzing the activity by certain envoys, with a view of ascertaining whether their activity was directed at securing Ukraine's national interests or other group's interests.

As the Minister reminded, the matter of ambassadors' rotation is in the President's competence.

With regard to the Ukrainian Embassy in Russia, Borys Tarasiuk said that in late October 2004, before the presidential election's first round, the Embassy proposed to open extra 420 polling stations in Russia. As a result of the check by the CEC, the number of applications by Ukrainian citizens, who supposedly sent them, was false. As the Foreign Minister stressed, law-enforcement bodies are now in charge of the matter.

***

All persons, who were on board of An-24 plane, which crashed in the Nenetsky Autonomous District, Russia on March 16, were Russian citizens, there were no Ukrainians among them, the Ukrainian Foreign Ministry's press service deputy chief Dmytro Svystkov told Ukrinform.

***

The Ministry for culture and arts postponed for a week a final decision about participation of Ukraine in the 51st Venice Biennale, the Ministry's statement,  conveyed to Ukrinform, reads.

The Ministry notes that a winner of a competition to participate in the Venice Biennale was not determined, and reminds that "according to the former Government's decision, Ukraine's participation in the Venice Biennale was disaffirmed".

Renewal of Ukraine's participation in the Venice Biennale was one of the first steps, made  by new Minister Oksana Bilozir. In compliance with requirements of participation in the Venice Biennale the Ukrainian Government appointed President of the National Academy of Art Andri Chebykin special Commissioner in charge of organizing national presentation of the project at the Biennale.

The Ministry's statement also concerns the fact that the Ministry "shares a public opinion about the jury's unsatisfactory work". 

"We should make joint efforts to solve this problem in a civilized manner", the statement further reads.  The Ministry for culture and arts took into consideration all open letters from numerous cultural figures and other representatives of modern arts.

"Taking into consideration the situation, making a final decision about Ukraine's participation in the Venice Biennale is postponed for a week", the document notes.

***

Anti-terror tactical exercises were carried out at the international airport Boryspil with participation of the Security Service, the Interior Ministry, the Defense Ministry, the Emergency Management Ministry, Ministry for transportation and communication and other ministries and departments of the country, as well as airport's respective services.

As the Security Service press service told Ukrinform, the main task was to prevent and stop the alleged terrorist attack on the air transport, to make terrorists harmless, free hostages and guarantee security of other passengers. In particular, a group of alleged terrorists seized a plane with the crew and passengers and laid down a number of conditions through the airport's administration. Following negotiations, the anti-terror operational staff made a decision to take the plane by storm, which was carried out by servicemen of the Security Service Main Agency's special unit "A".

Exercises were carried out in compliance with a program of a theoretical seminar, which was held within the framework of the International Civil Aviation Organization (ICAO) training course, based on the Boryspil Airport's European sub-regional center of aviation security. 

Participating in the seminar were ICAO representatives, leaders and representatives of aviation security services of airlines and aviation enterprises of Ukraine, the CIS countries and Europe, including Poland, Bulgaria and the Baltic countries.

Similar exercises are organized each year according to the plan actually in all the Ukrainian regions.

***

Viacheslav Synenko, who is accused of being involved in blast at the Donetsk stadium Shakhtar (Miner) on October 15, 1995, was brought from Greece under escort. As the Security Service press center sources told Ukrinform, a plane with the detainee arrived in Boryspil Airport on March 16 evening.

The Ukrainian national Viacheslav Synenko was under international criminal search and was arrested by Greek law-enforcement bodies on March 30, 2004 in Athens. Following an inquiry on the part of Ukrainian law-enforcement bodies, the Greek Ministry of Justice made a positive decision about his extradition to Ukraine.

As a result of the explosion at the Shakhtar stadium in Donetsk during a football match eight persons were killed, including Shakhtar Soccer Club President Oleksandr Brahin.

After accomplishing the crime Synenko left his place of permanent residence and some time later went to Greece.

Besides his involvement in killing Shakhtar Soccer Club President Brahin, he is accused of involvement in a number of other crimes. In particular, according to the PGO, Synenko is accused of resonance murders of people's deputies Vadym Hetman and Yevhen Shcherbyna in the 1990s.

***

In compliance with a decision by the National Security and Defense Council of Ukraine, Ukrainian peacekeepers carry out measures to prepare for the second stage of withdrawing national contingent from Iraq. 

As Defence Ministry  press service agency senior officer Maj Konstantin Sadilov told Ukrinform, the Army command started its work at the Ukrainian peacekeeping contingent in Iraq.

According to the officer, the main task of the operational group is rendering assistance to the 7th Detached Mechanized Brigade in carrying out future rotation and measures on partial reduction of the contingent, observance of security measures in fulfillment of tasks and preserving servicemen's life and health.

The hardware experts will discuss aspects of preparing the enginery, part of which will be designed for shipment to Ukraine, and the rest will be left for the Ukrainian peacekeeping contingent of the future rotation. The logistics officers are working out mechanisms of writing off the worn-out ammunition and enginery, which will allow to save considerable funds on transportation.

Operational group officers are acting in close cooperation with the command of the Center-South Multinational Division and the Multinational Force on supporting peace and stability in this country.

***

Ukrainian and Moldovan experts discussed the situation in and prospects for the development of cooperation between the countries in customs and transborder areas. The round table, staged in Kishinev, Moldova, was organized by the Center of the research of civil society problems and the Friedrich Ebert Fund.

Ukraine attaches great attention to the solving of challenging issues in developing the border infrastructure and custom stations. To this end the Ukrainian Government means to allot 400 to 500 M.USD, Ukrainian Extraordinary and Plenipotentiary Ambassador to Moldova Petro Chaly told Ukrinform correspondent.

According to Moldovan Deputy Minister for reintegration Viktor Pastelaki, Moldova is not able to combat smuggling and illegal migration at the Ukrainian-Moldovan borderline, especially at the Transdniestrian strip, on its own. Moldova counts on Ukraine and EU's assistance in settling these problems.

According to the experts, Ukrainian and Moldovan borderguards could establish joint borderstations and monitor the borderline together with OSCE observers. If the monitoring commission stays at Moldovan territory, Ukraine doesn't mind its activity. The Ukrainian side stated its readiness to independently solve the problem of smuggling within two-to three months, as it possesses all necessary prerequisites for it: the political will of the Govt and relevant instructions by the President, Ukrainian Rowing Ambassador Dmytro Tkach told the round table.

The participants in the session devoted much time to the Transdniestrian matter. The Ukrainian delegation spoke up for the establishment of mutually profitable relations among Moldovan, Transdniestrian and Ukrainian businesses, to which end Moldova should consider the status of economic facilities in Transdniestria.

In the experts' opinion, the issue of the legal status of Transdniestrian citizens should be promptly solved. Presently, citizens of the unrecognized state, the Transdniestrian Moldovan Republic, have no rights to cross the border and carry on any labor or other activity.

***

This week a special commission will be formed at the City-Hall to study demands of the people, picketing the City-Hall building, Oleksandr Omelchenko stated at a session of the Kyiv Rada on Thursday.

According to the Mayor, he will sign a corresponding instruction on Thursday with regard to forming such a commission. It will include not only representatives of city authorities, but also those from public organizations and experts on the given issues. He also promised that all demands by the picketing people (about 60) will be thoroughly studied, and, based on them, relevant decisions will be made, which will be published in the municipal press.

"All disputes between authorities and the public should be solved in a civilized manner, in the established order and in compliance with the Constitution of Ukraine", he said.

Also, Oleksandr Omelchenko drew attention to the fact that, according to law-enforcement bodies' data, participation in the action is not "gratis", since some participants in the action receive from organizers of this action by 20 hryvnias each for three hours of "work". Those people have no any moral right to demand anything, he noted.

***

Donetsk region's police officers concealed from registration 1,332 crimes in 2004 and 228 crimes over 2005's two months, Donetsk region's public prosecutor Oleksi Bahanets stated at an interagency meeting on Thursday.

 According to data, transfer of crimes from one reporting period to another is also considered to be a negative phenomenon.

"This does not only allow to carry out investigation without delay, but also prevents from applying operational possibilities", Oleksi Bahanets said.

Also, the facts of concealing unrevealed crimes from registration by way of qualifying grave crimes as less grave crimes appeared to be widely spread among law-enforcement officers.

Similar facts were revealed in towns and cities of the Donetsk region, such as Mariupol, Yenakiyevo, Kirovske and many others.

***

Some 500 Sevastopol residents participated in a rally, which was organized by the Progressive Socialists, chanting "Yes to the Union" and "No to NATO". Some speakers, representing the All-Crimean Movement for the Republic of Crimea and the Russian Community of Crimea,  urged on rendering the Russian status to Sevastopol and Crimea.

***

Control over rendering state aid to economic subjects in EU member-states was a focal point at a round table, which was staged by the Antimonopoly Committee of Ukraine within the program of technical assistance to Ukraine in implementing market reforms.

As Head of the European Commission delegation to Ukraine, Belarus and Moldova, Ambassador Ian Boag noted, the introduction of the undistorted competition system has been set among basic goals in the EU Treaty and in article 47 of the Agreement on cooperation and partnership between Ukraine and the EU. It first of all concerns the control over state aid, which adversely influences both the internal market and trade among states.

As department chief of the Competition Directorate General of the European Commission Maria Blanca Rodriguez Galindo said, according to the Lisbon aims, there is no full ban on state aid to EU economic subjects. Still, they emphasize on state aid's reduction and concentration on "horizontal" aid to research and development, protecting the environment, supporting small and medium-sized enterprises, employment, education and aid for regions lagging behind in terms of development. It is prohibited to aid bankrupt enterprises.

To aid enterprises state should get the European Commission's sanction, except for the above-mentioned cases, and provide other EU members with information on planning any state aid. The European Commission is monitoring state aid and is entitled to suspend it. There are independent bodies for monitoring state aid in some countries.

The European Commission may sanction state aid for funding the projects of common-European importance, particularly, for the development of transborder communication networks, the rectification of serious violations in the economies of EU member-states, the increase of competitive forces of the European industry and for combating unemployment.

Ukraine doesn't have any special legislation in the sphere of state aid to economic subjects. The relevant bill has been filed with the Verkhovna Rada, but he was rejected and needs to be polished. The document needs to clearly define the term "state aid" in compliance with the European term, to set a general ban, to outline cases not subject to the ban on state aid and to list institutions, entitled to grant state aid. State aid should be restricted in time and amount with no prolongation and obligatory annual reports to the Parliament. For instance, an enterprise has the right to be subsidized once in ten years, under the EU rules.

According to the TACIS project's leading expert, prof Helmut Schroeter, Ukraine should gradually implement basic elements of the control system and to resolve on whether the bill must regulate state aid to enterprises beyond the state's foreign economic policy. Such a decision must be taken with consideration of healthy competition, but not in terms of controlling budgetary outlays.

NOTE:

The European Commission distinguishes three types of state aid: regional, horizontal and branch.  The regional aid is aimed at softening economic disproportion in the economic development of different regions. There's a general condition that the number of regions, state aid subsidiaries, must not exceed 42.7 percent of the general number by 2006. For example, this number amounts to 100 percent in Greece, Portugal, Ireland, 15.9 percent in Sweden and 15 percent in the Netherlands. Regions, which face unemployment, where the level of life is very low and the GDP rate per resident is lower than 75 percent of the EU's average rate, have primary right to state aid.