President’s List
THE TAX THAT CRIES OUT
The information about Ukraine being removed from the blacklist of the countries not cooperating with the Financial Action Task Force on Money Laundering (FATF) was received precisely during Leonid Kuchma’s talk with media representatives. “I have just received a note saying that the FATF plenum unanimously decided to take Ukraine off the blacklist,” the president said. He greatly appreciated the government’s efforts that made it possible to lift the sanctions, stating that this event will not only further the improvement of Ukraine’s image but also have a considerable economic effect. In keeping with tradition, the president cited much of persuasive evidence of the growth of the nation’s economy. The most persuasive were 9% GDP growth by and 16% industrial production growth in 2003. To support these dynamics, the president believes it necessary to begin with the deshadowization of the economy. At that, cadre policy in every specific sphere is very important. The head of state underlined the need for increasing the effectiveness of the State Tax Administration’s work, adding that inspection results should be made public knowledge. Leonid Kuchma referred to the VAT problem as “crying.” In the last few years, a paradox can be observed: while the economy is growing, VAT returns are falling. The clue is quite simple: “The VAT has become the most criminalized tax,” President Kuchma said. Simultaneously, the president blamed this situation not so much on businessmen practicing tax fraud as “the system that allows them to get away with this.” However, he stated that he is satisfied with Viktor Yanukovych government’s work and expressed his confidence that the Cabinet of Minister’s report to Verkhovna Rada scheduled for the near future will not result in its fall. “This government has achieved the best results in all years of independence,” he stated.
“I AM NOT INTERESTED IN GUARANTEES”
In spite of his confidence that the Yanukovych government will work until the next presidential elections (unless something really extraordinary happens, as the president put it), Leonid Kuchma refrained from naming the prime minister as a candidate for the presidency from the majority. In his view, there are plenty of candidates for this role. “Just look at the parliament — there are candidates everywhere,” the president jocularly said. Simultaneously, Leonid Kuchma is convinced that a broad coalition of democratic forces will be able to nominate a single candidate for the 2004 presidential elections. “There will be a candidate from the political forces representing the parliamentary majority,” he said. He also stated once again that nominating a single candidate from the parliamentary majority is directly connected with the implementation of the Constitutional reform. The president expressed his hope that after the decision made by the majority and most of the opposition on February 3, the misunderstandings in the Ukrainian parliament will cease, and the supreme legislative body will be able to complete the process of introducing amendments to the Constitution in a civilized way. He also stressed the need to reform the judicial system and local self- government within the framework of the political reform. On journalists’ request, President Kuchma commented on the recent polls that show a significant growth in his popularity. The head of state connects this to the fact that people have begun to weigh the events in the country during his presidency, stating that perhaps they place first not even the condition of the economy but stability. The president called upon politicians going to the power to study the experience of the previous years and not rely on pie-in-the-sky promises. “One cannot build grand politics on pie- in-the-sky promises,” he said. Leonid Kuchma also claimed that he is not planning to become head of the government after the Constitutional reform is completed. In his view, after turning over his presidential authority, he plans to organize his own fund to “devote himself to politics” and “say openly what I think about anyone.” The guarantor of the Constitution also said that he has no intentions to request any guarantees of immunity after his term. “I am absolutely not interested in any guarantees; I feel fine in all respects,” President Kuchma stressed.
ON STRATEGIC PARTNERS AND OBLIGATIONS
The head of the state estimated highly the results of his recent visit to Germany and the relations between Ukraine and Germany in general. In part, the commodity turnover between the two countries doubled in 2003, reaching the mark of $3.7 billion, while the volume of German investment in Ukraine’s economy was $400 million. The president observed complete understanding from the German leaders concerning Ukraine’s Euro-Atlantic strivings and its will to become a WTO member. Leonid Kuchma referred to Germany as Ukraine’s major strategic partner in Europe and stressed the need to activate our relations with the Council of Europe, saying, “We still have many obligations to this organization.” The president spoke of the fact that this organization had not been properly informed about the essence of political processes in Ukraine, in part, the political reform, was largely the fault of the Ukrainian leadership. Commenting on the situation with the statements of the former employee of Ukraine’s embassy in Germany, SBU Col. Gen. Kravchenko, Leonid Kuchma said that he doesn’t believe there is any big politics behind his actions. The president characterized the consequences of the general’s actions with a folk saying — if the woman has a cart, it’s easier on the horse, adding that turncoats were a well-known phenomenon even under the USSR. Commenting on the Russian government’s resignation, Leonid Kuchma expressed his confidence that this would not affect Ukrainian-Russian relations. “I have no doubt that our relations with Russia will only improve,” he predicted, adding, “We need these relations in the standpoint of our own national interests.”
