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DECREE
OF THE PRESEDENT OF UKRAINE

On Measures to Improve
the Investment Climate in Ukraine
____________________________________

In order to ensure a complex approach to creation of friendly investment environment in Ukraine and livening up investment activity, taking into account the results of the Fifth Plenary Meeting of the Advisory Council on Foreign Investment in Ukraine, I decree:
1. The Cabinet of Ministers of Ukraine is to ratify until October 1, 2001 a Program on Development of Investment Activity in Ukraine in 2002-2010 (hereinafter referred to as "the Program").
The draft of the Program should contain complex measures aimed at further improvement of the investment climate in Ukraine, namely:

1) further deregulate and liberalize business activities in this sphere by ensuring minimal interference of executive authorities in business activities of entrepreneurs, increasing personal responsibility of the heads of executive bodies for issuing normative and legal acts, which negatively influence the market conditions and investment climate in Ukraine;

2) complete the creation of a stable and predictable legal environment, which is to be based on the principle of equality for all investors and to provide comprehensive regulation of all issues of investment activity;

3) ensure transparency of the procedure of the decision-making process of central and local executive bodies, extend the practice of public discussions of drafts of normative and legal acts on issues of carrying out investment activity;

4) improve the mechanisms of corporate rights management, including those enjoyed by the state, ensure the increase in dividends (revenues), accumulated to the stock (equities, shares), owned by the state in the property of economic associations, improve the protection of rights of minority shareholders;

5) eliminate structural deformations in the economy of Ukraine by increasing growth rates in consumer sectors and in services; attract long-term investors to priority industries, strengthen control over fulfillment their of investment obligations;

6) improve effectiveness of bankruptcy procedures;

7) ensure further reform of the tax system, particularly by means of lowering the tax burden, rationalizing and increasing transparency of tax administration procedures, and unconditional observance of the taxpayers' rights;

8) increase investment attractiveness of privatization objects by their restructuring, ensure complete separation of social infrastructure objects, create equal conditions for privatization participants, increase transparency of the privatization process, and carry out legislative regulation, taking into account international standards and experience concerning issues of responsibility for ecological damaged caused by the companies in the past;

9) carry out further administrative reform, aiming at improving and increasing effectiveness of public governance, eliminate bureaucracy and corruption, and improve partnership between entrepreneurs and executive authorities;

10) expand and modernize the transport infrastructure of Ukraine, in particular the gas transportation system, increase transit volumes, create a national network of transport corridors based on active attraction of investment to the road and transport infrastructure market, renew the rolling stock of transport companies, particularly by resorting to concession and leasing;

11) develop competitive environment and increase investment in the communications sector, improve tariff regulation, certification, and standardization in the telecommunication services sector;

12) further strengthen the banking system of Ukraine, increase the level of concentration of banking capital, increase long-term crediting of the real sector of economy, implement mortgage lending, stimulate attracting citizens' money deposits, create non-banking financial institutions, stimulate the inflow of foreign capital to the banking sector;

13) revive investment activity in special economic zones and territories of priority development with special investment regime, primarily in depressed territories;

14) stimulate investment attraction to the scientific, technical, and innovation activity, create new and develop the existing techno-parks, techno-polices, and innovation business-incubators;

15) encourage implementation of the judicial reform and ensure unconditional execution of court decisions.

When developing the draft of the Program, take into account the results of International Forum On The Ways of Accelerating Investments in Ukraine that took place on July 18, 2001 under the aegis of the Advisory Council on Foreign Investment in Ukraine.

2. The Cabinet of the Ministers of Ukraine shall;
stipulate for the necessary funds required for the implementation of the Program, when developing the draft Law On The State Budget of Ukraine 2002;
make propositions on initiating investment projects in certain priority branches of the Ukrainian economy under the aegis of the Advisory Council on Foreign Investment in Ukraine;
announce the approval of the Program and report on its implementation every six moths.

3. The Ministry of Economy of Ukraine, the Ministry of Foreign Affairs of Ukraine, the State Committee of Information Policy, Television and Radio Broadcasting of Ukraine, with participation of the foreign members of the Advisory Council on Foreign Investment in Ukraine and a Coordinator of relations with the foreign members of the Council, key foreign and domestic investors (at their consent) are to develop the draft of the Program On the Investment Image of Ukraine. It shall envisage measures on wide coverage of investment policy and achievements of Ukraine in creating attractive investment climate, aiming at creating a positive investment image of Ukraine abroad.

4. The Council of the Ministers of the Autonomous Republic of the Crimea, regional authorities, and Kyiv and Sevastopol municipal administrations, when developing corresponding budgets, are to provide funds required to implement the Programs on accelerating the inflows of investment for economic development of the corresponding administrative territorial units.


President of Ukraine
Leonid Kuchma

____________________________________________________________________________________________________

 

INFORMATION ON THE PROCEDURE OF ALIENS ENTRY/EXIT TO UKRAINE

At present, the Ukrainian legislation provides for both visa and visa-free entry procedure for aliens (foreign citizens and non-citizens).

The rules of aliens entry to/exit from Ukraine are regulated by Ukrainian law On Legal Status of Aliens, of February 4, 1994 and are subject to the rules of aliens entry to Ukraine, their exit from Ukraine and transit through its territory (under the Decree by Ukraine's Cabinet of Ministers of December 29, 1995).

Aliens shall enter/exit Ukraine through the crossing points on the State frontier, provided they have a national passport and a visa, if otherwise is not specified by the Ukrainian legislation.

All categories of visas are issued by Ukraine's diplomatic missions and consular departments abroad. In Ukraine, the Directorate General for Consular Affairs at the Ministry of Foreign Affairs of Ukraine issues diplomatic visas to diplomats for the term of their accreditation. Service visas are issued to officers of foreign affairs departments from foreign States who have a service passport, to foreign mass media staff as well as to the members of their families for the period of service card validity (Appendix 1).

In accordance with Decree No.227 by Ukraine's Cabinet of Ministers of February 20, 1999, visas for aliens are issued on the basis of their entry purpose, provided they have the appropriate documents (Appendix 2). Depending on validity, there exist the following types of visas: short-term visas (issued for up to 6 months) and long-term visas (6-12 months); by frequency of use the visas are divided into single, multiple and collective.

On their entry to Ukraine, aliens are required to register their passports in the nearest internal affairs agency located in the district of their place of stay. Registration of aliens national passports (with the exception of certain categories specified in Appendix 3) is carried out on the grounds of written applications by the entities which host the aliens and by permanent foreign missions. The applications should be directed to internal affairs agency no later than within 3 working days since the date of submission by the aliens of their national passports to this organization (mission) for registration.

Should these rules be violated, frontier guards or internal affairs officers will stamp the violator's national passport with a note "Entry into Ukraine is barred for the term of ..." This term is established by the internal affairs agency, Security Service or frontier guards depending upon the circumstances and type of violation and ranges from 6 months to 5 years.

In case of loss of national passports by aliens on the territory of Ukraine, the passport owner should inform their hosting organization and an internal affairs agency about this incident. The latter, upon the alien's request, issues a substitution document. On obtaining national passports by aliens at the diplomatic mission or consular department of their country on the basis of the alien's application and a petition by their hosting organization, the internal affairs agency provides for issuing an exit visa or registration of the alien's national passport.

Transit of aliens through the territory of Ukraine is allowed, provided the alien has a transit Ukrainian visa, a destination country visa and tickets or other documents proving that the intended trip is really a transit.

Non-residents who have permanent residence in Ukraine, go on foreign trips with a non-resident identification document allowing for foreign trips and with an exit visa.

Citizens of the States which have concluded international agreements with Ukraine on visa-free travelling of citizens (see Addendum 4) enter into Ukraine with a valid national passport, provided they have an insurance policy and a duly arranged invitation (original) by a legal or private person from Ukraine, if otherwise is not envisaged by an international agreement. There still exists a visa-free regime with the CIS countries (according to the Agreement on Visa-Free Migration of the CIS Countries Citizens of October 9, 1992), including Russia and Belarus (according to the concluded agreements).

INFORMATION ON THE PROCEDURE OF UKRAINIAN CITIZENS EXIT TO/ENTRY FROM ABROAD

Ukraine's law On the Procedure of Ukrainian Citizens Exit From and Entry to Ukraine of January 21, 1994 establishes the order for issuing documents for foreign trips and defines the cases when Ukrainian citizens should temporarily be prohibited to leave Ukraine. In accordance with this Law and with the Decree No.738 of December 31, 1992 On Top Priority Measures to be Taken to Resolve the Issues of Ukrainian Citizens Travelling Abroad, Ukrainian citizens shall exit via the State border crossing points, provided they have valid travel documents, a foreign destination State visa or a duly arranged agreement. In many countries of the world there is a mandatory requirement for the foreigner to have a certain amount of money which is expected to enable the foreigner to sustain his/her living in the country of destination.

In order to get a permission to visit the countries which require a visa to enter, Ukrainian citizens must provide the following:
- travel document (diplomatic or service passport, Ukrainian national passport for travelling abroad, child's travel document, sailor's ID);
- invitation;
- filled-in entry forms of the country of destination;
- consular fee, according to the requirements of the country of origin.

According to Decree No.491/93 of October 28, 1993 by the President of Ukraine, passports for travelling abroad are issued to Ukrainian citizens by internal affairs agencies at their place of residence. Diplomatic missions and consular departments issue passports to Ukrainian citizens who permanently live abroad, are on a long-term business trip, undergoing a course of study or on a secondment abroad, work under contract or undergoing a medical treatment course in a foreign country (according to Order No.93-sd of July 1, 1997 by the Ministry of Foreign Affairs of Ukraine). The Ministry of Foreign Affairs of Ukraine issues diplomatic and service passports which are valid exclusively for service business trips abroad by officials of State power bodies, national institutions and organizations, according to Decree No.515/92 of October 27, 1992 by the President of Ukraine.

In case of loss of the travel document outside Ukraine, Ukraine's consular post to this country issues a return identity card on submission of the Ukrainian citizen's personal application. The identity card is issued only after the person's identity and citizenship has been proved by Ukraine's competent organs.

As you know, on March 26, 1995 the Schengen agreements have entered into force, according to which, a visa-free space has been formed on the territory of Europe. The Schengen visa provides for unconstrained movement on the territory of all the countries which are signatory to the above agreements, however it can only be issued by the Embassy of the inviting country.

APPENDIX 1
Diplomatic and service visas

Diplomatic visas are issued to the following categories of persons having diplomatic passports:
- diplomatic members of foreign missions and consular posts in Ukraine and to members of their families;
- aliens, entering Ukraine with diplomatic missions; diplomatic couriers;
- members of governments, parliaments, international organizations;
- prominent politicians whose entry into Ukraine is a diplomatic issue.

Service visas are divided into three categories and are issued to:
C-1
- service staff of foreign diplomatic missions and consular posts in Ukraine and to members of their families;
- members of Ukraine-based international organizations;
- State power bodies officials of foreign countries who enter into Ukraine on business.
C-2
- members of military formations and institutions who enter into Ukraine on business by invitation of related State bodies.
C-3
- representatives of manufacturing, trade, financial and political circles who enter into Ukraine on business by invitation of State institutions registered in Ukraine in the established order.

APPENDIX 2
Grounds for issuing visas

P-1 (private visa) - invitation of an established type duly arranged by the internal affairs agencies or an invitation of a Ukrainian medical institution and other documents proving the private nature of the trip.
P-2 (private visa) - personal application, results of a personal interview with an employee of a Ukrainian diplomatic mission or consular post which is in charge of deciding whether a visa can be issued, and documents proving Ukrainian background of an alien or a non-citizen.

B (business visa) - invitation of an established type duly arranged by the internal affairs agencies.

T (tourist visa) - documents proving the tourist nature of the trip.

H (visa for members of humanitarian missions) - approval by the Commission at the Cabinet of Ministers of Ukraine for coordination, acceptance, transportation, security and distribution of humanitarian aid rendered by foreign States.

E (visa for members of rescue services) - approval by the Ministry of Emergency Issues of Ukraine.

O (student visa) - invitation of an established type issued by the Ministry of Education of Ukraine.

M (visa for mass media staff) - Instruction by the Ministry of Foreign Affairs of Ukraine on issuing the visa.

R (visa for members of religious missions) - invitation by a religious organization, certificate by the State Committee of Religions.

TP-1 (transit visa) - document proving the transit nature of the trip, visa to a third country, ticket, etc.
TP-2 (transit visa) - documents proving the transit nature of cargo transportation and public bus transportation through the territory of Ukraine.

EI-1 (immigration visa) - work permit issued by the Ministry of Labor.
EI-1 (immigration visa) - permit by a local executive body for permanent residence in Ukraine.

OI (visa for international transport service staff) - license for international transportation issued by the corresponding agency of the host country.

Visas of other types are issued on the request by the State authorities of foreign countries, international organizations, invitation cards issued by ministries, by other central executive power bodies, as well as invitation cards of the type established by the Cabinet of Ministers of Ukraine from Ukrainian legal and natural persons.

In case of need, an employee of a Ukrainian diplomatic mission or a consular post may request additional documents which would in a better way specify the aim of the alien's/non-resident's trip or invite a certain person for an additional interview.

APPENDIX 3
Category list of persons whose passports are not subject to registration in Ukraine's internal affairs organs

- Heads of States and governments of foreign countries, members of parliamentary and governmental delegations, service staff of such delegations and members of their families who have arrived in Ukraine by invitation of the President of Ukraine, Verhovna Rada or Cabinet of Ministers of Ukraine, Supreme Council or Government of the Autonomous Republic of Crimea and by Ukraine's ministries;
- Employees and their family members who have arrived in Ukraine with UN passports and members of UN organizations;
- Aliens aged under 18;
- Aliens who have arrived in Ukraine for a period of no more than 3 days and are supposed to leave Ukraine within this period;
- Foreign tourists on a cruise;
- Crew members of foreign military ships (aircraft);
- Crew members of foreign non-military ships, civil aircraft belonging to international airlines, international railway trains brigades.

APPENDIX 4
List of countries which have visa-free movement regime with Ukraine
(dated May 2001)

- Republic of Argentina - diplomatic and service (official) passports;;
- Republic of Bulgaria - all kinds of passports;
- Federative Republic of Brazil - diplomatic and service passports;
- Republic of Belarus - identity and citizenship proving documents;
- Republic of Cuba - diplomatic, service and official passports (Cuba), sailor's passport, sailor's identity card (Ukraine), crew member identity card (Ukraine), Ukrainian national passport for travelling abroad, child's travel document (Ukraine), national foreign passport (Cuba), travel identity card (Cuba);
- Kingdom of Cambodia - diplomatic and service (official) passports;
- Peoples Republic of China - diplomatic and service passports, national foreign passport marked as "service" (Ukraine), national service passport (China), sailor's passport, sailor's identity card (Ukraine);
- Republic of Croatia - diplomatic and service passports, sailor's passport, sailor's identity card (Ukraine);
- Republic of Chile - diplomatic, service and official passports (Chile);
- Republic of Estonia - diplomatic passports;
- Republic of Guinea - diplomatic and service passports;
- Hungarian Republic - all kinds of passports;
- Islamic Republic of Iran - diplomatic and service passports;
- State of Israel - diplomatic passports;
- Peoples Democratic Republic of Laos - diplomatic and service (official) passports;
- Republic of Lithuania - diplomatic and service passports;
- Republic of Latvia - diplomatic passports;
- United States of Mexico - diplomatic passports;
- Mongolia - all kinds of passports;
- Republic of Poland - all kinds of passports;
- Romania - all kinds of passports;
- Russian Federative Republic - identity and citizenship proving documents;
- Former SRY countries, except Slovenia and Croatia - all kinds of passports;
- Slovak Republic - diplomatic, service passports;
- Republic of Turkey - diplomatic, service and special passports (Turkey);
- Former USSR countries - identity and citizenship proving documents;
- Socialist Republic of Vietnam - diplomatic and service passports, sailor's passport, sailor's identity card (Ukraine);
- Georgia - diplomatic, service and national foreign passports.

ABROAD TRAVEL DOCUMENTS OF UKRAINE

DIPLOMATIC PASSPORT, TYPE D
Passports issued after March 14, 1998 are valid for travel abroad till the date of expiry.
Passports issued before March 14, 1998 lost the validity to travel abroad from Ukraine, and to enter Ukraine.
The passport was issued by the MFA of Ukraine.

DIPLOMATIC PASSPORT, TYPE DP
The passport is issued by the MFA of Ukraine from July,1999

SERVICE PASSPORT, TYPE S
Passports issued after March 14, 1998 are valid for travel abroad till the date of expiry.
Passports issued before March 14, 1998 lost the validity to travel abroad from Ukraine, and to enter Ukraine.
The passport was issued by the MFA of Ukraine till May 30, 1998.

SERVICE PASSPORT, TYPE CP
Valid for travel abroad.
The passport is issued by MFA of Ukraine from June 7, 1999.

PASSPORT OF THE CITIZEN OF UKRAINE FOR TRAVEL ABROAD
The passport is valid for travel abroad till the date of expiry.
The passport is issued by MFA of Ukraine, by consular sections of Ukraine abroad, by Ministry of Interior of Ukraine bodies

FOREIGN PASSPORT OF USSR
The passport lost validity to travel abroad from Ukraine from January 1, 1998. Retains validity to enter Ukraine till the date of expiry, provided availability of stamps in the passport "Valid for departure to any country" and "This passport is the property of Ukraine" with due seals.
The passport was issued by former USSR Ministry of Interior till 1991, by Ministry of Interior of Ukraine bodies, by MFA of Ukraine, by consular sections of Ukraine abroad from 1992 till 1997.

PASSPORT OF THE CITIZEN OF USSR
This kind of passport is not valid for travel abroad from December 31, 2000.
The passport was issued by former USSR Ministry of Interior till 1991 and by Ministry of Interior of Ukraine till 1994.

PASSPORT OF THE CITIZEN OF UKRAINE
Valid for travel to Russian Federation and the Republic of Belarus.
The passport is issued by Ministry of Interior of Ukraine.

STATELESS PERSON'S TRAVEL DOCUMENT
Valid to travel abroad from Ukraine, to travel outside Ukraine, to enter Ukraine till the date of expiry.
The document is issued by the Ministry of Interior of Ukraine.

TRAVEL DOCUMENT OF A CHILD
Valid to travel abroad from Ukraine, to travel outside Ukraine, to enter Ukraine till the date of expiry.
The document is issued to children till they reach the age of 18 years by the Ministry of Interior of Ukraine.

SEAMAN'S IDENTIFICATION CARD
Valid to travel abroad from Ukraine, to travel outside Ukraine, to enter Ukraine till the date of expiry.
The ID card is issued to the citizens of Ukraine as well as to seamen of other states who serve on board a vessel registered on the territory of Ukraine.
The ID card is issued by sea or river harbor masters.

CERTIFICATE FOR RETURNING TO UKRAINE
Valid for entry to Ukraine and for transit travel on the territory of other countries on the way to Ukraine.
The certificate is issued to the citizens of Ukraine permanently residing in Ukraine in case of loss or damage of their traveling documents during their stay abroad.
The certificate is issued by consular sections of Ukraine abroad.

CREW MEMBER CERTIFICATE
The certificate is valid to travel abroad from Ukraine and to enter Ukraine on airplane on which the owner is employed. Individual entry-exit travel is allowed when the owner travels to the airplane location place.
The certificate is issued by the Ministry of Transport of Ukraine to citizens of Ukraine as well as to foreigners - crew members of the airplane registered in Ukraine.

____________________________________________________________________________________________________

We have faith only in those who have faith in themselves.

Five messages of the Minister for Foreign Affairs of Ukraine
Anatoliy Zlenko
(Address at MFA press conference)

Dear Colleagues, Ladies and Gentlemen!

We have faith only in those who have faith in themselves.

When I was preparing myself for this press conference I decided to choose these words, said by Talleyrand, as a leitmotif of my address.

With the beginning of 2001 we are entering a new period of Ukraine's activities at the world arena.
I see this stage as a time of pragmatic and strict protection of the national interests of our state.
The new time will require intelligent and rational use of our foreign policy forces.
[The new time will require] Maximum trust and confidence in our own capabilities.
That is why I'd like to start our first meeting in the New Year from my most important message.
We open a new page that will contain fewer words.
They will be written correctly instead.
We are finishing the age of foreign-policy "breakthroughs" and disposing ourselves to a domestic "breakthrough".
That is why I am very glad to set forth before you my vision of our actions at the world arena.
[That is why I am very glad] To share my thoughts and ideas about the future goals of the national foreign policy.
And, finally, to state several personal "yes" and "no", without which I cannot imagine effective implementation of Ukrainian foreign policy course.

Nowadays, at the beginning of a new century, there are lots of debates about modus vivendi of the modern international relations.
The processes of globalization - increase of international political, security, economic and cultural interdependency - have became the key reality of the world's coexistence.
Worldwide spreading of fundamental democratic values has become an ideological foundation of this phenomenon.
The crucial incentive for globalization lays in its economic advantages. Informational revolution and the breakdown of bipolar system have made these processes irreversible.
The idea of the end of idealistic period of the formation of a new system of international coordinates has also become irreversible, however.
The concept of "pragmatism" has become one of the most widely used and dominating in the foreign policy concepts of the leading subjects of world community.
Another quite characteristic term has become the concept of "commonness of political, economic and cultural values", which should be not only shared, but also conformed to.
That is especially obvious within our European space.
Already today the modern European policy to a large extent resembles a policy of ideological alliance, which has common guidelines, lives in accordance with set rules of strict and fair economic competition, strives to protect itself to the greatest extent possible from challenges and threats to its own security.
Thus, the score for the modern European orchestra has already been written.
And in order not to violate the harmony of its performance, this score should be learned by every European musician.
For us, Ukraine, this means, first of all, that in the XXI century the quality of sounding of the Ukrainian voice, which is the foreign policy weight of our state, in no case shall be determined by its placement.
The year 2000 demonstrated that geopolitical placement of a country is a considerable but not crucial factor.
Open civic society, effective performance of market economy, governance of law, consistency and predictability of foreign policy - these are the key criteria that will influence the place of our state in the newest European and world orchestra.
That is my second message to our meeting.

What is Ukraine like at the world arena today?

In political sense, our country has authority of an initiative, intellectually self-sufficient and constructive participant of international life.
Kyiv is seen as a strategically important capital at the world's geopolitical map.
Ukraine reaffirmed its reputation of a consistent and predictable partner in 2000.
That was, first of all, shown by our productive activities within the framework of the UN Security Council.
The implementation of the initiative of the President of Ukraine to conduct Security Council Summit, declaration of far-reaching proposals during the Millennium Summit, substantial increase (20 times) of the volumes and geography of Ukrainian participation in UN-led peacekeeping operations - I think that those and other known to you facts do not require any further comments.

The year 2000 also saw Ukraine's strengthening as a regional leader.
Regional leadership is not an end in itself of our foreign activities. It is a derivative of geopolitical, economic and intellectual potential of the Ukrainian state.
The willingness to gradually increase our constructive influence on the general situation in the region is our rightful ambition and, ultimately - national interest.

During the last year Ukraine strengthened its positions within GUUAM. We made enough steps to revitalize and "economize" CIS activities. The fact that this institution still works mechanically does not underestimate our constructive contribution into its work. The participation of Ukraine in the Central European Initiative, Black Sea Economic Cooperation Organization and the Council of the Baltic Sea States was positive.

We continued to perform an important task of contributing safety to the European continent.
Thus our intermediary and peacemaking efforts, in particular, in Kosovo (Yugoslavia), in Transdnistria (Moldova), in settlement of Georgian-Abkhazian conflict have remained noticeable and useful.
The activities of our peacekeepers beyond the borders of the European continent that were crossed long ago, were [also] noticeable and useful.

In 2000 we acted as a prospective participant of the European integration processes.
It was this year in our relations with the European Union and NATO that became a period of day-to-day and detailed work.
Those, I think, are encouraging activities.
Because, as we know, the main point is never words, but always concrete actions.

In principle, we have overcome the declaration stage in vital for us European integration field and have aimed ourselves at practical and so the most necessary moments of cooperation.
Ukraine has reaffirmed its mature attitude towards the idea of "strategic partnership".
The time has come when our number of strategic partners should not scare us.
There cannot be too many of them. Their number should be as big as it is necessary.
Instead we should adhere to a normal logic in relations with them.
It is necessary that our partners should respect Ukrainian interests as well as we respect theirs. I am confident: that is the core, the meaning of strategic partnership.
We should speak the same things about the same problems in Brussels, in Moscow and in Washington.
If the positions of our partners are different, we should act proceeding strictly from our own national interests.
I am confident that such an approach fully complies with our foreign policy strategy.
Without any doubts, the fact that in the last months of the last year the Russian component of our foreign policy, as it should be, started gaining real practical meaning, also complies with our foreign policy strategy.
We, in fact, managed to get on the path of establishment of a new module of bilateral cooperation as equal and mutually interested partners.

What is most important, we gradually started to avoid extremes.
We should understand that if Ukraine agrees with Russia on a specific issue, this does not mean that it follows the lead of Moscow. Or vice-versa, if Kyiv does not support Russian position, we should not think that a kind of a new Berlin wall is growing between us.

By the way, the same applies to the Ukrainian-American relations.
The year 2000 proved to be quite rich and intensive in the relations with the United States.
We are quite satisfied with the last year's dynamics and content of our relations.
It is important that the U.S. Secretary of State Collin Powell in his letter reaffirmed the readiness of the new Administration to keep up the volumes of bilateral cooperation. By the way, the same was stressed during the last conversation of the President of Ukraine with a famous strategist of U.S. foreign policy - Rep. Henry Kissinger.
Speaking about Poland, I highly estimate the level of our dialog that has long ago become a part of national security for Ukraine.

Finally, during the last year Ukraine once again demonstrated that it was a carrier of philosophy of values common to all mankind.
The final shutdown of Chornobyl nuclear power plant has the same historical significance as the Ukrainian signature of UN Charter and its decision to abandon its nuclear weapons.

The above-mentioned list of results would be incomplete without several questions that we had to and still have to answer.

Are we ready for aggressive protection of state interests, of the interests of Ukrainian business circles, citizens and compatriots? Yes.
Can we do it without consolidated efforts of all Ukrainian society? No.
Should Ukraine say "yes" at the international arena? Yes.
Should we forget about the word "no", especially if it directly concerns our national interests? Unambiguously - No.

Gentlemen, the year 2000 taught us a very important lesson.
We made sure that in order to make Kyiv an inalienable foundation of the European home in long-term outlook, it is necessary to provide a systematic character to our foreign policy actions, and to get rid of chaos and unnecessary illusions.
This is, in fact, my third message, with which I address you, dear colleagues.

Systematic character of our foreign policy actions lies in reasoning, regulating and coordination of the work of our national state apparatus.
That is when your right hand knows what your left hand does.
Systematic character, in the first place, assumes full submission of Ukraine's foreign policy to the urgent needs of the Ukrainian state and its citizens.
Foreign policy cannot exist separately from domestic one.
For me it is an axiom.
A real result of understanding such an axiom should become closer attention of domestic diplomatic service to promoting foreign economic interests of Ukraine.
I regard economization of foreign policy not only as a headache of the Ministry of Foreign Affairs, but also as a matter of interest for the whole state.
It demands conceptual vision of the ways for attracting foreign economic possibilities for the needs of Ukraine.
It means strict lobbying and protection of our economic interests on the international arena.
It means taking systemic and coordinated actions.

In the nearest future the MFA of Ukraine will present its own draft concept for economization of our state's foreign policy.
Within the framework of this concept we will not only outline the directions of our work, but we will also come forward with new initiatives, such as "Ambassadors of Ukrainian Business" and "Promotion of Ukrainian Business" which, I hope, will become a useful practical contribution to this matter.
Final completion of the discussions on the "multivectorial nature" of Ukrainian foreign policy should become a rather important step for systematizing our actions.

William Hamilton, an Irish scientist, who used the term "vector" for the first time in 1846, didn't even imagine how harmful could be misinterpretation of this word.
Thus, we can perceive "multivectorial nature" as it is understood by the majority of states.
[We can perceive "multivectorial nature"] As developing and maintaining relations with many participants of international community. It is known that even a small point has an unlimited number of vectors even if their length equals zero.
However, "multivectorial nature" is by no means a direction of a state's movement in the system of international coordinates.
As a Ukrainian proverb says, it is impossible to move "in three directions" at the same time.
It should be understood once and for all.
In the sense of movement and in the sense of choice, I want to underline it once more, that in the sense of movement and in the sense of choice Ukraine does not consider itself a multivectorial state.

Our choice and goal are determined.
They are clearly pronounced by Leonid Kuchma, the President of Ukraine.
That is European integration of Ukraine.
For this reason for the year that came I see the main task in filling with real contents the eurointegrational activities of Ukraine which I regard as achieving high internal economic and legal standards, and also in regulating the state institutions' work in this direction.
I am sure that if Ukrainian society on the whole clearly understands the weight of our foreign policy priorities, there will be no grounds for accusations of any "lists" in the national foreign policy.

Our goal is simple, that is to become richer, stronger and more rallied.
To achieve we do not have to invent our own rules.
It is necessary to examine and to adhere to the norms, which we call the "European dossier".
Favorable influence of our strategic goal, i.e. membership in the European Union, lies not in the illusory "mountains of gold", but in the fact that membership criteria themselves compel us to implement deep internal reforms.
At the same time, to be able to take calm care of the domestic transformation and realization of the European choice, it is necessary to provide constantly favorable external conditions.

Taking into account modern realities, first and foremost for Ukraine it means development of strategic partnership with the Russian Federation and the United States of America. Friendly and practical relations with these countries I regard as a key pledge of our security.
It also means strengthening neighborly relations with Poland, Slovakia, Hungary, Romania, Moldova and Belarus.
It provides for deepening partnership links with Berlin, London, and Paris.
It actually means forming that positive baggage with which Ukraine can become consolidated into the European space.

I believe that inalienable components of this baggage are Ukraine's entering the World Trade Organization, restoring its image in the Council of Europe, deepening practical cooperation with NATO, ensuring realization of our initiatives in the Organization for Security and Cooperation in Europe and other regional structures.

Thus, we are speaking about realization of the key tasks for 2001.
Of course, they are inseparable from restoration of favorable international image of Ukraine.
This goal will be dominating all our methods of informational and elucidative activities based on the principle of objective reflection, but not of justification.
All diplomatic service of the state will work for the benefit of image and authority of Ukraine.

First of all it concerns continuing weighed and consistent policy within the framework of the UN Security Council where we will preside this March.
In the hierarchy of contemporary international relations there is no higher and more responsible post than the Head of the Security Council.
We regard Ukrainian presidency at this world institution, which bears supreme responsibility for the global peace and security as a high mission that we are ready and able to fulfill.
I am sure that this year the wisdom of the foreign policy ideology of Ukraine shall be also proved by the visits of the Pope John Paul II and the UN Secretary General Kofi Annan to Ukraine.

An important event for us as a regional leader will be holding Kyiv GUUAM Summit. I believe that it will go down in history as a Summit giving birth to a new organization.

We also set ourselves an important task of providing continuation of Ukrainian peacekeeping and intermediary missions as an integral component of our foreign policy activities.

And finally we intend to discover new azimuths of Ukrainian foreign policy.
It concerns pragmatization of our activities at the markets of the Near East, the Middle East, Africa, Asia and the South America.

We will take measures for transforming Ukraine into one of important transport and communication crossroads, into an important concentration of gas and petroleum ways.

Therefore, the year of the 10th celebration of Ukrainian independence I see as rather tense and significant in the sense of foreign policy.
We should totally mobilize our own forces.
We should be convinced of our own abilities and potential.
I hope that deep structural and personnel reform of the MFA system which has already marked the year 2001 will let us lay foundations for effective activities on the international arena in a new decade and a new century.
And I want Ukrainian diplomats to adhere to my forth message in this work.
Nationally conscientious, I want to stress, nationally conscientious defending the state interests, strict pragmatism in actions, realism in estimations and orientation towards the result, both political and economic.
These are defining principles of our work.

Finally, this is my fifth and last message that I want to deliver today.
Ukrainian foreign policy activities should become transparent for the society.
This is my firm conviction.
Undoubtedly, this idea will remain unrealized if there is no active and constructive cooperation between the Ministry of Foreign Affairs and national mass media, scientific institutions, non-state public organizations.
I am sure that without free press and free thought there will be no European democratic Ukraine.
Therefore, Ukrainian foreign policy activities will be unrealistic, illusory and ineffective.
I want our dialogue to become mutually necessary and useful and this is very important for me.
We realize that it is by a journalist's word that we inform Ukrainian public about the idea of our state's foreign policy
That is why we, the Ministry of Foreign Affairs, are ready to render maximum assistance for your voice to become more convinced, precise and professional.
Namely these will be the aims for the MFA to direct its initiatives concerning search and communication to journalists information on the educational institutions, scientific centers and public funds which could be useful for professional growth and perfection of national mass media.
We are also working over the idea of forming a network of Ukrainian information centers abroad, which would communicate unprejudiced and objective information about the events in our country to the world.
At last, namely this year on December 22 on the Ukrainian Diplomacy Day we will name the best Ukrainian journalist in the field of international affairs.
That is because we believe in your professionalism and competence.
That is because we believe in our own work.
We believe in those who believe in themselves.

Anatoliy ZLENKO,
The Minister for Foreign Affairs of Ukraine


UKRAINE'S RETURN TO EUROPE

Ten years have passed since the day when independence of Ukraine, second largest state in Europe and one of its most populated countries, was declared.

For me writing about Ukrainian independence is easy and complicated at the same time. It is easy because it is my Motherland, which I love and of which I am very proud. It is complicated because our national history was too complex to allow describing in a single article what modern Ukraine is, how it emerged on the map of Europe and why it had been missing from this map for long centuries.

The Ukrainians originate from Kyiv Rus, a great European state, which princes were intermarried with the majority of monarchic families of the continent. Ukrainian Princess Anna Yaroslavna became queen of France and wife of the King Henry the 1st. During her inauguration she refused to swear an oath on French bible and swore her oath on Slavic Holy Scripture, which she had brought with her.

Centuries have passed. Due to Tartar-Mongol invasion and internal embroilment Kyiv Rus gradually disappeared from the map of Europe. By the way, the ancient tome brought by Anna was kept in Paris at Reims Cathedral as a reminder of lost grandeur of the Slav State. It is said that French kings swore their oaths on Ukrainian bible up to the 19th century.

Since then Ukraine's history had its bright and dark pages, however only in the 20th century the time has come to restore the statehood.

In the beginning it was the brief moment of declaration of the Ukrainian People's Republic in 1918. And then came the great turn of 1991, the collapse of the Soviet Union and emergence of new independent states, one of them being Ukraine.

24 August is the tenth anniversary since the adoption of the Act of Declaration of Independence of Ukraine.

Country in transition - this definition quite precisely reflects the essence of the processes of today's Ukraine. It is a young state in terms of spirit, steadily marching on the way of reforms. Its main achievements lay ahead. One should not look for Ukraine's place within the framework of stereotypes inherited from the times of the Cold War. It does not fit in those frames.

I trust in Ukraine. However this faith is based mostly not on emotions, but on realizing the huge natural, intellectual, scientific and technical potential of my country. Naturally, its main treasure is the people. Back in the Soviet times Ukraine was renowned for its engineers and scientists, musicians and writers. Modern aircraft, space rockets and hi-tech equipment have been built and are being built here. Cultural life, no less lively than in other European capitals, never dies here. I believe that this will go on in the future.

Last year the market reforms initiated by the President Leonid Kuchma brought their evident fruits. Today Ukraine is unequalled in terms of economic growth in Europe. The industry starts to recover. Use of modern agricultural techniques in conjunction with the best black earth in the world lead to long awaited agricultural growth.

We have a stable currency and low inflation level. Economic growth, which lasts for second year already, was achieved despite stable high prices of energy and without any assistance from international financial institutions. Therefore those positive figures hardly can be explained only by fluctuations of economic situation.

I often hear the question "Where is Ukraine going?" I'd answer it the following way: we are moving from a state where human being was ignored to a state where human being, his/her life, welfare, thought represents the main value. Its is an immensely complicated and painful process that stipulates not only for changes of political and economic system. It stipulates for the change of mind. He who sees future Europe open, democratic and strong, must support Ukraine on this way.

If Europe indeed wants to be united in its diversity, it should be open for Ukraine as well. Therefore I am confident that the European Union should not decisively limit its expansion by the Ukrainian-Polish border. Ukraine's European aspirations represent not an orientation of political situation, but a conscious strategic choice. It is one of the modern global realities. I am confident: it would be a mistake to consider Ukraine's European aspirations as a problem. Ukraine is the European chance and a component of the future of our continent. It would be irrational to dissemble this.

My country belongs to the states, which see prospects beyond the temporary problems, however deep they may be.

This prospective is clearly defined. It is integration into the European space, orientation at the European values - such as democracy, market social economy, and respect for human rights. We shall not leave this way. May be we could have left it in the first years of our independence, however leaving it now is as unreal as halting a train moving at full speed.

Ukraine strives to become EU member in the future. Before this we are ready to be good neighbor and active partner for the EU. Speaking in moral terms, there's not much to be done about this - transferring partnership spirit and dynamics, which we've achieved in our relations with, say, Poland - future EU member, into the relations of Ukraine with the whole European Union. Positive thinking and openness from both Ukraine and the EU should become safeguards of our movement along this road for the years to come. Recent invitation of Ukraine to participate in the European Conference reaffirms this.

I think that analysis of the recent Ukrainian foreign policy gives no grounds for pessimism at all. Establishing Ukraine as a stable and consistent actor of international relations is one of the most important achievements of independence age. The last decade gave us a bunch of foreign policy achievements. They include UN Security Council membership and voting at the UN General Assembly. It is hard to imagine Georgian-Abkhazian or Transdniestrian negotiation process without Ukraine.

It has brought the third largest nuclear potential in the world to the altar of European and global stability. It has decommissioned Chornobyl NPP, and until now it is trying to overcome, using its own resources, the lack of energy supply by spending money meant for social programs.

Finally, Ukraine is the leader among the European states by the number of its sons who wear UN helmets and risk their lives to establish peace and stability in various hotspots ranging from Sierra-Leone to Kosovo.

Those were the most noticeable international aspects of the first ten years of existence of independent Ukraine. They declare for what purpose Ukraine has returned to Europe. It is called to be a factor of peace and stability, to unite Western and Eastern Europe. It is called to demonstrate (and it is already demonstrating) that simultaneous partnership with the European Union and Russia, advancement towards the EU and development of friendly, good-neighbor relations with the Russian Federation are not a paradox of new Europe, but its obligate attribute.

I am confident that in the next decade this positive impulse laid down in the Ukrainian independence will find its continuation.

Ukraine shall strengthen its stabilizing role in the whole Eastern European region, it shall be a strategic partner for both the EU and Russia, as well as for all other neighbors. It shall move along the way of reforms and, I am sure, it shall become a participant of economic success that awaits Eastern Europe - the region of tremendous possibilities and prospects.

In the end I'd like to recall the recent event that without doubts will go down to history as one of turning-points of newest Ukrainian history - the visit of the Pope. His arrival found sincere response and became a bright remembrance in the hearts of majority of Ukrainians.

While in Ukraine, John Paul II characterized Ukrainian independence as "the dawning of New Hope". For us this hope first of all is connected with Europe. Today it is being gradually supplemented by self-reliance and experience of existence in the world marked by globalization and informational revolution.

Anatoliy ZLENKO,
The Minister for Foreign Affairs of Ukraine