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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Political Speculation or Real Losses?

8 December, 1998 - 00:00


Last week, while a US delegation visited Kharkiv, its leader William
Tailor, Aid Coordinator for the Newly Independent States, and US Ambassador
Stephen Pifer, who had arrived later, visited the Turboatom research-and-production
association the state-owned Malyshev Works, and an exhibition of investment
projects at the State Academy of Municipal Management.

As was reported previously, the US government supported the Kharkiv
Initiative because it would serve its global interests to have a weak partner
on Russia's border. Perhaps after Ukraine's eastern territories receive
an industrial impetus they will serve as a counterweight to the segment
of the public that wants to return to our powerful neighbor's embrace.

Ukraine has lost nothing economically by refusing to take part in the
Iranian Bushehr nuclear power contract, National Security and Defense Council
Secretary Volodymyr Horbulin said at a briefing on December 2. All allegations
about losses - $500 million (suggested in April) or $260 million (recently
cited in a television program) - are political speculations, he added.

Mr. Horbulin went on to say that the only actual loss is the $4.5 million
allocated for Kharkiv's Turboatom production association for R&D. As
for about $45 and $50 million due, respectively, Turboatom and other enterprises
for doing such work, no one knows when this money will be paid. The NSDC
Secretary considers it an accomplishment that Ukraine received access to
the monitoring of missiles and missile technologies after declining the
Bushehr contract. In addition, contracts for Kharkiv enterprises could
be found within the Kharkiv Initiative framework. However, Turboatom's
director general Anatoly Buhayets told Interfax that no compensation has
been mentioned so far, that the American side has offered no specific proposals,
and that the talks are proceeding with difficulty.

Interviewed by The Day's Mykhailo BIDENKO and Oleh
PERESADA
, Turboatom chief engineer Mykhailo Virchenko said, "Word spread
about compensation is a gross exaggeration. Mr. Tailor brought no orders
and promised to pass our proposals on to US business circles. If they find
them interesting the will cooperate. Actually, we hadn't expected anything
else from this visit." Turboatom General Director Anatoly Buhayets stated
that Ukrainian losses to date have topped $260 million, including $48-50
million lost by the state budget, along with 3,000 jobs lasting seven to
ten years. Kharkiv Governor Oleh Diomyn said that unless measures are taken
to support Turboatom now, the first power units of Ukraine's nuclear power
stations will stop ten years from now, their useful life over.

 

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