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Archive for September, 2006

Ukraine’s PM indignant over mismanagement of community services

Posted by the Editor on September 29, 2006


News / 29 September 2006 | 12:41

Ukraine's PM indignant over mismanagement of community services

Ukraine’s PM indignant over mismanagement of community services

Prime Minister of Ukraine Victor Yanukovych is not satisfied with that the heads of housing and communal services “try to shift their mismanagement onto tariff policy.”

“Heads of housing and communal services try to shift off their mismanagement, and we tidy up this,” Yanukovych said in the Donetsk airport yesterday evening.

“We won’t practise populism,” the Premier declared and added: “we will remove all non-productive outlays.”

“I can unambiguously state that we will remove all non-productive outlays, which heads of housing and communal services try to shift onto tariff policy. We will clear the tariffs. It is our task,” the PM underlined.

Yanukovych expressed regret that “by the highest standards, there is no state policy of tariff formation in the country.”

“As a result, we have a lot of faults. We must investigate and introduce order to make the housing and communal services work properly,” the Head of the government noted.

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Azarov: Nobody means to throw stones at our predecessors

Posted by the Editor on September 29, 2006


News / 29 September 2006 | 12:20

Nobody means to throw stones at our predecessors

Azarov: Nobody means to throw stones at our predecessors

Mykola Azarov briefly touched upon the questions raised in speeches at the Cabinet of Ministers’ sessions yesterday. At first, he tried to destroy the myth about the new budget and claimed that Budget 2007 is more social vis-à-vis Budget 2006, as it envisages increase in all social payments.

First Vice Prime Minister Mykola Azarov also informed that in the new budget the amount of regional budgets alone was raised by 2.1 bln UAH, in particular, for medicine plus 543 mlnUAH, for food products – 520 mln UAH. After the last approval, 4.3 bln UAH was added, assistance to the families with children was increased by 5.3 bln UAH, as Mykola Azarov stressed.

At the same time, First Vice Prime Minister complained that the officials were trying to fight disproportion created in 2005-2006. The thoughts exist, that our dynamics of GDP was the best among the rest countries of CIS but 5% with a tail is not a perfect result comparing to 2005, especially if to take into account the quality of its increase and its structure, Mykola Azarov was quoted as saying.

Considering the amount of investments, the orator recalled period 2003-2004 when direct foreign investments totaled 2.3 bln UAH. In reality, the country faces decrease of investments into the basic capital at the expense of own resources of our enterprises, he informed.

According to First Vice Prime Minister Mykola Azarov, the low level of inflation is explained as owing to great volume of foodstuffs, but the primary question here is to resume market of our products we have lost for now.

He also informed the audience about the lack of 640 mln UAH for child birth assistance, plus 750 mln UAH to finance servicemen pensions and 2 bln UAH as subsidies for city budgets on tariffs increase.

“Nobody means to throw stones at our predecessors, we only make unbiased, serious analysis affording to reach clear and proper decisions,” emphasized First Vice Prime Minister Mykola Azarov.

Touching upon the issue of tariffs, the official said that realization of gas extracted in Ukraine is focused only for the Ukrainian people and that, facing such a difficult situation, we shouldn’t afford “UkrNafta” to sell gas abroad. Answering to Poltava governor Mr. Asadchev, Mykola Azarov opined,” Tariffs cannot be a bit uplifted, it’s anti-economic category. Tariffs should be well-grounded, which the Government is trying to do now.”

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Ernst & Young Co opens representative office in Donetsk

Posted by the Editor on September 29, 2006


News / 29 September 2006 | 12:02

Ernst & Young Co opens representative office in Donetsk

Ernst & Young Co opens representative office in Donetsk

Ernst &Young Co has opened a representative office in Donetsk, Oleksiy Kredisov, a manager partner of the Company has informed.

According to Kredisov, Donetsk was chosen as a city with the largest economic potential where the demand on Ernst &Young services exceeds existing supply.

Donetsk office provides clients with the audit services, but in the coming future it will cover the whole segment of consulting, legal and tax services, Oleksandr Chernyavsky, a Director of the new office, told.

Touching the future plans, Chernyavsky stated the office will provide all types of Ernst &Young Co services.

There are 25 employees working in the Donetsk office, among tem 18 Donetsk residents.

Ernst &Young opened its first Ukrainian office in 1991 in Kyiv, Donetsk office has become the second one in Ukraine and 14 in the CIS.

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Ukraine FGI to examine Coca-Cola Beverages Ukraine (Kyiv region)

Posted by the Editor on September 29, 2006


News / 29 September 2006 | 11:36

Ukraine FGI to examine Coca-Cola Beverages Ukraine (Kyiv region)

Ukraine FGI to examine Coca-Cola Beverages Ukraine (Kyiv region)

Ukraine’s State Property Fund (FGI) proposes to verify Coca-Cola Beverages Ukraine plant situated in Kyiv suburb. Valentyna Semenyuk, a Head of the Property Fund, revealed it Thursday at the Cabinet’s session.

She outlined the subject of the verification as the necessity to examine the water sources (its volumes, environmental influence) the enterprise uses for producing process.

FGI Head mentioned that the sweet water recourses will last Europe 50-75 years. However, Ukraine does not perform such calculations. “Now we suffer from energy deficit and then we will suffer from water deficit,” stressed Semenyuk.

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Ukraine’s President seeks for compromise

Posted by the Editor on September 29, 2006


News / 29 September 2006 | 11:12

Ukraine's President seeks for compromise

Ukraine’s President seeks for compromise

(President’s press office) – Victor Yushchenko believes Ukraine has achieved economic stability in the past seven months and says GDP growth, low inflation and increasing incomes are among the main indicators of the country’s economic health.

The President stated: “Our society now takes the stability of the national currency, the absence of debts in the budget sector and growing salaries and pensions, which are now higher than the living wage, for granted. This happened despite numerous market stresses and serious domestic challenges.”

He thinks it is too early to say if the team led by Viktor Yanukovych performs poorly or well but the achievements of the past several months will help it preserve all the positive changes.   

The Chief of State is, however, worried about some economic tendencies, particularly the negative balance of trade, but claims it is not the fault of the incumbent government.

“We have been approaching this result for fifteen years, hesitantly searching for new markets and introducing economic reforms slowly,” he admitted.  

Yushchenko commends ex-premier Yuri Yekhanurov and his cabinet for initiating anti-dumping investigations and attempting to settle trade arguments at the beginning of the year.  

“I think these severe but necessary measures will help overcome or at least considerably minimize the impact of the problem,” he said.

The President insists that, although parliament has enacted many WTO bills and Ukraine’s major political leaders have confirmed their will in the National Unity Pact, members of parliament pass the most controversial bills to join the World Trade Organization.

“I am ready to hold a meeting on WTO membership and activate negotiations with our key partners in Brussels and Washington,” he promised.  

Yushchenko is also anxious about the third coal mine accident this month.

“It has been said thousands of times that we pay a huge price for introducing no reforms in the sector. Without a systematic approach, no extra funds will help resolve the safety problem (By the way, the Zasiadko mine is a paragon of safety.) First scientists and experts should formulate an ideology to reform the industry and give us answers whether it is expedient to mine at such depths and how we can ensure the safety of miners to protect them from methane leaks, etc. There are thousands of nuances to be considered and studied,” he said.

The President promises to sign a budget aimed at reforming and developing the country.

“The budget must be a tool of national development, not a means to distribute resources. Such an approach is wrong and faulty. In the draft budget I see no mechanisms to end the trade deficit and support the national industry,” he said.

Yushchenko is convinced the budget should be consistent with national priorities.

“The citizens of Ukraine want the security and defense system to function efficiently. They want incorrupt justice and accessible and affordable medicine and education. In other words, they want to be confident in their future. The budget should perform its major function of being the engine of the country’s development,” he opined.  

Although the President supports the initiative to improve the investment climate, he is afraid “these billions will be used non-transparently.”

“It means the society will never know where this money goes, and Ukraine will lose it. I am thereby convinced we must accumulate investment resources before developing a transparent and logical mechanism of their distribution,” he said.

Yushchenko calls on the government to act consistently.

“You cannot twice override the president’s veto of the law on the moratorium to raise energy and transport prices, secretly cutting social expenses. I will sign this law and sincerely wish you to implement it, first considering the new budget reality,” he said.

He also criticizes the cabinet for its privatization policy, seeing no logic in it and wanting them to explain why they choose to auction this or that company.

“This list has lots of barely attractive companies for investors. At the same time, key companies, which should be private and boost budget revenues, belong to the state. Doesn’t that happen because state interests are being replaced with private interests?” he asked.

The Chief of State is going to discuss inappropriate staff rotations with the Prosecutor General, the State Security Chief, the Interior Minister, and governors. He believes governors should cooperate with representatives of local councils but their partnership must be honest and responsibility equal.

As far as the central government, he hopes the bill on the cabinet of ministers will be enacted soon.

“This is one of the requirements in the National Unity Pact, whose observance should be discussed not in the government building but publicly. The existing draft undermines the principle of the separation of powers. It does not say how the head of state should interact with the executive branch, and the executive branch with the judicial branch. [], he complained.

Yushchenko believes the new quality of economic stability should be supported by political stability, particularly by mechanisms of interaction between the president and the government.  

“I categorically declare that the process of introducing constitutional reforms must not be associated with the usurpation of power. We need an efficient mechanism of interaction. As a guarantor of the Constitution, I have to preserve balance in government and society. I hope we will compromise,” he said.     

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Bulgaria states its interest in furthering cooperation with Ukraine

Posted by the Editor on September 29, 2006


News / 29 September 2006 | 10:53

Bulgaria states its interest in furthering cooperation with Ukraine

Bulgaria states its interest in furthering cooperation with Ukraine

Bulgaria is interested in promoting its cooperation with Ukraine and will do everything for this, President Georgi Parvanov of Bulgaria said while meeting with participants in a session of the World Council of News Agencies, currently under way in Sofia, Cabinet’s press office reported.

Replying to the question about Bulgaria’s policies with regard to Ukraine vis-a-vis Bulgaria’s accession into the EU, Mr Parvanov said Ukraine has always been and will always remain one of Bulgaria’s paramount partners, in political, economic, spiritual matters.

Your country is among our close neighbors, and neighbors are doomed to maintain friendly, goodneighborly relations, Georgiy Parvanov noted.

The Bulgarian President aired his hope that shortly visits will be exchanged by the two countries’ Presidents and Prime Ministers.

After the new governments were formed in Bulgaria and Ukraine there is every opportunity for giving a fresh impetus to our cooperation, President Parvanov said.

The World Council session has drawn chiefs of 23 news agencies from all over the world.

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Ukraine’ Chief of Staff and Germany’s Economic Delegate held a meeting

Posted by the Editor on September 29, 2006


News / 29 September 2006 | 10:35

Ukraine' Chief of Staff and Germany's Economic Delegate held a meeting

Ukraine’ Chief of Staff and Germany’s Economic Delegate held a meeting

Seprtember 27, Secretariat Chief of Staff Viktor Baloha met with Karin Rau, Germany’s Economic Delegate to Ukraine.

They discussed preparations for this November’s Germany-Ukraine automobile forum in Kyiv. Mr. Baloha said Ukraine regarded Germany as its key foreign economic partner.

“Kyiv appreciates its traditionally kind and friendly relations with Berlin,” he said.

Ms Rau said some economic regulations should be repealed as measures that “make investments in Ukraine unprofitable and block foreign investments in the economy.”

Victor Baloha said the government and parliament would consider this issue when discussing next year’s budget.

“The Head of State focuses much of his attention on attracting German investments in Ukraine, particularly in our high technology industries,” he said.

Mr. Baloha expressed confidenceUkrainian-German economic cooperation would develop.

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Ukraine’s Baloha meets Poland’s Aleksander Szczygło

Posted by the Editor on September 29, 2006


News / 29 September 2006 | 10:18

Ukraine's Baloha meets Poland's Aleksander Szczygło

Ukraine’s Baloha meets Poland’s Aleksander Szczygło

Secretariat Chief of Staff Viktor Baloha met with his Polish colleague, Aleksander Szczygło, who is visiting Ukraine to mark the sixty-fifth anniversary of the Babyn Yar massacre, the president press office reports.

Ukraine’s Chief of Staff Baloha and Mr Szczygło discussed ways to develop cooperation between the presidential offices. They agreed to convenea meeting of the Consultative Committee of the Presidents of Ukraine and Poland to discuss priorities in bilateral relations. The chief of staff characterized the committee as an “important mechanism of the complex development of bilateral interaction.” Deputy Chief of Staff Oleksandr Chalyy will represent Ukraine during the meeting.

They also spoke about regional, home and foreign issues.

Poland’s Ambassador to Ukraine Jacek Kluczkowski attended the meeting.

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