Italian Pres. SCALFARO: "Italy understands Ukraine"

"Italy understands Ukrainian problems. Now they must be understood by IMF and the Word Bank. The IMF must support Ukraine the way it did Russia, and the EU the way it did Rumania during the coal-miners' march," said Mr. Scalfaro after talks with Mr. Kuchma, guaranteeing Ukraine the "concrete and true" friendship of Italy. The Iveco Company, part of Fiat, plans to expand its presence in Ukraine, namely, at the Kremenchuk automotive factory. As far as is known, the tentative intention is to increase the Italian investment by $200 million. However, these intentions will remain just that if it is simpler and cheaper in the future to import a small truck or minivan direct from Italy than assemble one in Kremenchuk with Ukrainian-made components. This topic was high on the agenda during Mr. Scalfaro's previous visit in October 1996 and could remain so for a long time.

Another subject of long discussions seems to be the destiny of the Lysychansk-based LINOS oil refinery, once invested in by Italy and now in fact standing idle. The Russians finally refused to buy 40% of its stock well before the August crisis. It is anybody's guess how to repay an over $100 million loan. There have been no radical changes for the better since the two presidents met last.

This means that talk about Italy's possible future support of signing an association agreement between Ukraine and the European Union could remain just talk. All discussions of increased investment will also bear the reservation, "perhaps, in the future." Yet, Mr. Scalfaro's visit also shows that all is not lost, that Rome retains some expectations. Indeed, no other Western leader has twice visited President Kuchma's Ukraine. That the two presidents had little time only shows that good friends can agree to everything even in a few minutes.