# CRIME DIGEST - AUGUST 2001

## THE FOLLOWING MATERIAL HAS BEEN COMPILED BY RSO FROM THE UKRAINIAN POLICE AND OTHER OFFICIAL RECORDS IN AUGUST 2001 FOR THE BENEFIT OF AMERICAN COMPANIES, INDIVIDUALS, AND OTHERS REQUIRING SUCH INFORMATION. THIS MATERIAL HAS BEEN PREPARED BY LOCAL STAFF BUT NOT PROFESSIONALLY EDITED.

## A. GENERAL CRIME 

PORTUGAL/UKRAINE

EIGHTY THOUSAND UKRAINIAN IMMIGRANTS HAVE BEEN OFFICIALLY REGISTERED IN
PORTUGAL.

UKRAINE

THE U.S. HAS SUSPENDED UKRAINE\'S TRADING PRIVILEGES IN CONNECTION WITH
THE CONTINUING MANUFACTURE OF PIRATED CDS IN UKRAINE.

VINNYTSIA

A LOCAL NEWSPAPER REPORTED ABOUT THE MURDER IN VINNYTSIA EARLIER THIS
SUMMER OF A REFUGEE FROM RWANDA WHO WAS AN ACTIVIST FOR AMNESTY
INTERNATIONAL.

KIEV

THE LEADER OF STUDENTS WHO SEIZED THE COMMUNIST PARTY HEADQUARTERS IN
KIEV LAST YEAR THREATENS THAT AFTER AUGUST 18 STUDENTS CAN BEGIN TO BURN
THEMSELVES UNLESS CRIMINAL CHARGES AGAINST THEM ARE DROPPED.

ON AUGUST 7, THAT PARLIAMENTARIAN TARAS CHORNOVIL SAID THAT HE IS
CONFIDENT THAT THE CAR CRASH WHICH KILLED HIS FATHER, VIACHESLAV
CHORNOVIL IN 1999 WAS NOT AN ACCIDENT, AND THAT HIS FATHER WAS MURDERED.
TARAS CHORNOVIL DOUBTS THAT THE MURDER OF HIS FATHER WILL BE SOLVED.
TARAS CHORNOVIL SAID THAT THE INVESTIGATORS HAVE RESTYLED THE CRIMINAL
CASE CONCERNING HIS FATHER\'S DEATH FROM A TRAFFIC ACCIDENT TO A
TERRORIST ACT.

THE PRESS REPORTS THAT ON AUGUST 8 A MAN FROM DNIPROPETROVSK OBLAST
APPROACHED THE U.S. EMBASSY IN KIEV WITH A GRENADE. POLICE PERSUADED THE
MAN TO HAND OVER THE GRENADE AND SURRENDER. UA TODAY REPORTS THAT THE
MAN HELD A MOCK GRENADE. ACCORDING TO THE U.S. EMBASSY, THE MAN DID NOT
THREATEN TO EXPLODE THE GRENADE, HE JUST ASKED FOR POLITICAL ASYLUM FOR
HIMSELF AND HIS FAMILY.

THE PRESS REPORTS ABOUT A FIRE ON AUGUST 19 AT THE STB STUDIO IN KIEV.
THE FIRE HAS BEEN PUT DOWN.

DONETSK OBLAST

THERE IS NO KNOWN PROGRESS IN THE INVESTIGATION INTO THE MURDER IN JULY
OF THE TV REPORTER FROM DONETSK OBLAST, ALEKSANDROV. A LOCAL NEWSPAPER
WRITES ABOUT MISTREATMENT BY POLICE OF THE REPORTER FROM MELITOPOL IN
SEVASTOPOL ON JULY 28. ON AUGUST 27 DEPUTY PROSECUTOR GENERAL VINOGRADOV
HAS SAID THAT THE SUSPECT, WHO IS SUSPECTED OF KILLING MR. ALEXANDROV,
THE TV REPORTER FROM DONETSK OBLAST, IS COOPERATING WITH THE
INVESTIGATION. DEPUTY PROSECUTOR GENERAL VINOGRADOV HAS SAID THAT THE
MURDER OF MR. ALEKSANDROV WAS NOT LINKED TO HIS PROFESSIONAL ACTIVITIES.
THE DONETSK OBLAST GOVERNOR YANUKOVYCH HAS ALSO SAID THAT THE SUSPECTED
MURDERER OF ALEKSANDROV HAS BEEN DETAINED.

THE THIRD WORLD FORUM OF UKRAINIANS WRAPPED UP ITS WORK IN KIEV AUGUST
20. PRESIDENT KUCHMA, WHO ADDRESSED THE GATHERING ON SATURDAY, "FACED A
CHORUS OF BOOS AND JEERS" FROM HIS OPPONENTS IN THE AUDIENCE WHEN HE
SOUGHT TO DENY THE CHARGES OF HIS INVOLVEMENT IN THE MURDER OF
JOURNALIST GONGADZE.

THE ATTORNEY FOR DIDOVETS, A MEMBER OF THE GROUP OF STUDENTS WHO SEIZED
THE COMMUNIST PARTY HEADQUARTERS IN KIEV LAST YEAR, HAS SAID THAT HIS
CLIENT HAS BEEN BEATEN WHILE IN POLICE CUSTODY. POLICE ACCUSE MR.
DIDOVETS OF SETTING ON FIRE THE DOOR OF THE APARTMENT OF THE PROSECUTOR
CONDUCTING THE STUDENTS\' CASE.

THE SECURITY SERVICE BRAGS THAT SINCE INDEPENDENCE IT HAS TERMINATED THE
ACTIVITIES OF OVER 70 FOREIGN SPIES.

A HOMELESS MAN THREATENED TO BURN HIMSELF OUTSIDE THE BUILDING OF THE
U.S. EMBASSY\'S CONSULAR SECTION IN KIEV ON AUGUST 30. HE WAS DETAINED
BY POLICE.

CHERKASY

THE PRESS REPORTS ABOUT THE CONTRACT KILLING ON AUGUST 2 OF A
BUSINESSMAN IN CHERKASY DURING WHICH A 12-YEAR OLD GIRL WAS ALSO SHOT
DEAD.

DONETSK

THE AUGUST 19 EXPLOSION AT UKRAINE'S LARGEST ZASIAD'KO COAL MINE IN THE
DONETSK OBLAST KILLED 36 MINERS AND LEFT 25 INJURED. ANOTHER 15 WORKERS
ARE STILL MISSING. THE MINE IS RUN BY PARLIAMENTARIAN AND INFLUENTIAL
REPRESENTATIVE OF THE DONETSK CLAN, YUKHYM ZVIAHILSKY.

B. MELNYCHENKO TAPES

KIEV

WHILE ADDRESSING A NEWS CONFERENCE IN VINNYTSIA THE OPPOSITION
PARLIAMENTARIAN GRYGORIY OMELCHENKO SAID THAT HE HAS BROUGHT FROM THE
U.S. NEW TAPES FROM MAJOR MELNYCHENKO REVEALING PRESIDENT KUCHMA\'S
CORRUPTION. FOR EXAMPLE, IN APRIL 1999 PRESIDENT KUCHMA SEIZED CONTROL
OF BANK UKRAYINA THROUGH HIS PEOPLE: HEAD OF THE BANK\'S SUPERVISORY
BOARD VOLODYMYR SATSIUK (PARLIAMENTARIAN, DEMOCRATIC UNION) AND DEPUTY
HEAD OF THE BANK\'S SUPERVISORY BOARD OLEKSANDR VOLKOV (PARLIAMENTARIAN,
DEMOCRATIC UNION), AND OTHER PRO-PRESIDENTIAL MEMBERS OF THE SUPERVISORY
BOARD. THE BANK UKRAYINA FUNDED PRESIDENT KUCHMA\'S ELECTION CAMPAIGN IN
1999 THROUGH LOANS TO THE PRO-PRESIDENTIAL COMPANIES.

UKRAINE

ON AUGUST 14, WHILE SPEAKING IN A RADIO INTERVIEW, MAJOR MELNYCHENKO
SAID THE FOLLOWING: MAJOR MELNYCHENKO IS PREPARED TO COOPERATE WITH THE
U.S. AND RUSSIAN LAW ENFORCEMENT AGENCIES THROUGH THE RADA INQUIRY
COMMISSION ON THE GONGADZE CASE IN THE CORRUPTION INVESTIGATIONS. MAJOR
MELNYCHENKO WILL NOT COOPERATE WITH THE UKRAINIAN LAW ENFORCEMENT
AGENCIES WHO SERVE THE RULING UKRAINIAN MAFIA. MAJOR MELNYCHENKO DID NOT
PASS ANY TAPES TO THE U.S. AUTHORITIES. HE HANDED OVER THE TAPES ONLY TO
THE RADA INQUIRY COMMISSION ON THE GONGADZE CASE. MAJOR MELNYCHENKO DID
NOT ANSWER THE QUESTION WHETHER HE PLANS TO RELEASE THE NEW TAPES. HE
SAID THAT THIS QUESTION SHOULD BE PUT TO THE RADA INQUIRY COMMISSION ON
THE GONGADZE CASE WHICH HAS THE TAPES. MAJOR MELNYCHENKO COMPLAINED THAT
SOME EDITED TAPES WERE RELEASED BY HIS OPPONENTS ON PURPOSE TO BLAME HIM
FOR FABRICATING THE TAPES. WHEN ASKED ABOUT PRESIDENT KUCHMA\'S
INVOLVEMENT IN THE ILLICIT ARMS TRADE, MAJOR MELNYCHENKO SAID THAT
PRESIDENT KUCHMA VIOLATED THE U.S. LAWS, AND THAT IN FUTURE PRESIDENT
KUCHMA WILL BE BROUGHT TO JUSTICE FOR IT. THERE WAS A REAL THREAT TO HIS
LIFE. MAJOR MELNYCHENKO CANNOT RULE OUT THAT THIS THREAT CONTINUES TO
EXIST. THE RADIO NEWS PRESENTER ALSO SAID THE FOLLOWING: MAJOR
MELNYCHENKO\'S TAPES HAVE REVEALED THAT PRESIDENT KUCHMA PROFITED FROM
THE THEFT OF THE RUSSIAN GAS, AND THAT PRESIDENT KUCHMA KNEW ABOUT THE
MURDER OF GONGADZE MUCH EARLIER THAN THE UKRAINIAN PUBLIC. WHILE
SPEAKING ON RADIO LIBERTY, GONGADZE\'S WIFE, MYROSLAVA GONGADZE SAID
THAT MAJOR MELNYCHENKO IS PREPARED TO COOPERATE WITH THE U.S. LAW
ENFORCEMENT AGENCIES IN THE INVESTIGATION INTO CRIME AND CORRUPTION. SHE
BELIEVES THAT MAJOR MELNYCHENKO HOPES THE TIME WILL COME WHEN PRESIDENT
KUCHMA WILL BE BROUGHT TO JUSTICE FOR HIS CRIMES. MAJOR MELNYCHENKO HAS
RELEASED THE TAPE WHERE PRESIDENT KUCHMA TALKS WITH THE ARMS DEALER
ZHUKOV. MAJOR MELNYCHENKO HAS REVEALED THE U.S. ACCOUNTS IN THE BANK OF
NEW YORK OF PARLIAMENTARIANS VOLKOV AND PRESIDENT KUCHMA\'S SON IN LAW,
PARLIAMENTARIAN PINCHUK. PARLIAMENTARIAN SHYSHKIN SAID THE FOLLOWING:
MAJOR MELNYCHENKO HAS A TAPE WHERE THE MAYOR OF ODESA, BODELAN,
INTRODUCES THE ARMS DEALER ZHUKOV (WHO IS NOW IN DETENTION IN ITALY) TO
PRESIDENT KUCHMA; AND THEN PRESIDENT KUCHMA DISCUSSES WITH ZHUKOV HOW
THEY KEEP IN TOUCH. ZHUKOV SAYS THAT HE CANNOT KEEP IN TOUCH THROUGH
EITHER THE REMOVED PRIME MINISTER PUSTOVOYTENKO OR YUSHCHENKO. PRESIDENT
KUCHMA SUGGESTS THAT ZHUKOV SHOULD KEEP IN TOUCH THROUGH THE
PRESIDENTIAL CHIEF OF STAFF, LYTVYN. SHYSHKIN SAID THAT MAJOR
MELNYCHENKO DOES NOT HAVE HIS TAPES AND THAT THEY ARE STORED ELSEWHERE.
NO TAPES WERE HANDED OVER TO THE U.S. SPECIAL SERVICES. MAJOR
MELNYCHENKO IS PREPARED TO COOPERATE WITH THE U.S. AUTHORITIES THROUGH
THE RADA INQUIRY COMMISSION ON THE GONGADZE CASE. PARLIAMENTARIAN
SHYSHKIN HOPES THAT SUCH A COOPERATION WILL BE ESTABLISHED. MAJOR
MELNYCHENKO IS ALSO PREPARED TO TESTIFY IN THE U.S. TO THE UKRAINIAN
INVESTIGATORS. ON AUGUST 14, RADIO LIBERTY ALSO REPORTED ABOUT MAJOR
MELNYCHENKO\'S AND VICTOR SHYSHKIN\'S NEWS CONFERENCE IN WASHINGTON.
SHYSHKIN SAID THAT MAJOR MELNYCHENKO\'S TAPES REVEAL CORRUPTION RELATED
TO THE NATURAL GAS, AND PRESIDENT KUCHMA\'S CONTACTS WITH THE ARMS
DEALER ZHUKOV. THE TAPES REVEAL THAT THE DIRTY UKRAINIAN MONEY WAS
LAUNDERED THROUGH THE BANK OF NEW YORK IN THE U.S. THE TAPES REVEAL THAT
THE MONEY OF THE COMPANY NAFTOGAZ UKRAYINY WAS CHANNELED FOR PRESIDENT
KUCHMA\'S ELECTION CAMPAIGN. MAJOR MELNYCHENKO TOLD THE NEWS CONFERENCE
THAT PRESIDENT KUCHMA\'S ENTOURAGE LAUNDERED HUGE SUMS OF MONEY. MAJOR
MELNYCHENKO CANNOT RULE OUT THAT THERE ARE TAPES REVEALING THAT THE
MONEY WAS LAUNDERED IN THE U.S. MAJOR MELNYCHENKO IS PREPARED TO
COOPERATE WITH THE LAW ENFORCEMENT AGENCIES THROUGH THE UKRAINIAN SIDE
(SO THAT THE UKRAINIAN NATIONAL INTERESTS ARE ACCOMMODATED) TO COMBAT
CORRUPTION IN THE U.S. AND RUSSIA. MAJOR MELNYCHENKO PASSED HIS TAPES
ONLY TO THE RADA INQUIRY COMMISSION ON THE GONGADZE CASE.

A LOCAL INTERNET SITE WROTE THAT MAJOR MELNYCHENKO ALSO SAID THE
FOLLOWING: PRESIDENT KUCHMA AND HIS AIDES WHISPERED WHILE DISCUSSING THE
THEFT OF THE RUSSIAN GAS, SO IT WILL BE DIFFICULT TO MAKE THE
TRANSCRIPTS OF THESE EPISODES WITHOUT SPECIAL EQUIPMENT. THESE
CONVERSATIONS TOOK PLACE SHORTLY AFTER YUSHCHENKO BECAME PRIME MINISTER.
THERE ARE ALSO TAPES WHERE KUCHMA AND HIS AIDES DISCUSS YUSHCHENKO\'S
AND TYMOSHENKO\'S ATTEMPTS TO PUT AN END TO THE THEFT OF THE RUSSIAN
GAS. MAJOR MELNYCHENKO SAID THAT PRESIDENT KUCHMA AND HIS AIDES SHOULD
BE UNDER NO ILLUSION THAT MAJOR MELNYCHENKO HAS GONE INTO HIDING AND
THAT HE HAS STOPPED OPPOSING THEM. THERE ARE MORE THAN 300 HOURS OF
TAPED CONVERSATIONS. MAJOR MELNYCHENKO HOPES THAT HIS PRESENT INTENSE
TALKS (HE DID NOT SPECIFY WITH WHOM) WILL PRODUCE POSITIVE RESULTS FOR
THE LAW ENFORCEMENT AGENCIES.

PRESIDENT KUCHMA KNEW THAT GONGADZE WAS DEAD ON THE FIFTH DAY AFTER
GONGADZE\'S DISAPPEARANCE. MAJOR MELNYCHENKO SAID THAT HE DID NOT ASK
BAKAY FOR MONEY FOR SOME EQUIPMENT AND FOR THE TREATMENT OF HIS SICK
DAUGHTER. PRESIDENT KUCHMA APPOINTED BAKAY TO THE POST OF THE HEAD OF
THE COMPANY NAFTOGAZ UKRAYINY ON CONDITION THAT BAKAY PROVIDE USD 250
MILLION FOR PRESIDENT KUCHMA\'S ELECTION CAMPAIGN.

C. GONGADZE UPDATE

KIEV

ON AUGUST 12 THE KIEV FORENSIC BUREAU HAS ONCE AGAIN OFFERED GONGADZE\'S
MOTHER TO TAKE AWAY GONGADZE\'S BODY FROM THE MORGUE. THE PROCURACY HAS
OFFERED TO TAKE AWAY GONGADZE\'S BODY FROM THE MORGUE AND TO STORE IT
ELSEWHERE.

D. DEMONSTRATIONS

CRIMEA

THE RUSSIAN NEWSPAPER WRITES THAT THE RECENT CLASHES BETWEEN THE CRIMEAN
TATARS AND THE FAITHFUL OF THE RUSSIAN ORTHODOX CHURCH AT A MONASTERY
NEAR BAKHCHYSARAY IN THE CRIMEA SHOW THAT THE CRIMEA IS BECOMING ANOTHER
SPOT OF INSTABILITY.

KIEV

ON AUGUST 6 THE GREEN PARTY HELD A DEMONSTRATION OUTSIDE THE U.S.
EMBASSY IN KIEV TODAY IN SUPPORT OF GLOBAL NUCLEAR DISARMAMENT.

THE PRESS REPORTS THAT ON SATURDAY, AUGUST 18, ABOUT 1,000 TO 1,500
OPPOSITIONISTS HELD A DEMONSTRATION OUTSIDE THE CONVENTION CENTER PALACE
UKRAYINA IN KIEV, WHERE THE WORLD FORUM OF UKRAINIANS WAS HELD.

ON AUGUST 22 ABOUT ONE HUNDRED COMMUNISTS HELD A DEMONSTRATION OUTSIDE
THE RADA BUILDING. THEY DEMANDED THE RESTORATION OF THE USSR.

ON AUGUST 24, THE RIOT POLICE ENCIRCLED IN INDEPENDENCE SQUARE IN KIEV
ABOUT 30 SOCIALIST PARTY ACTIVISTS FOR WEARING T-SHIRTS WITH INSCRIPTION
\"YES TO UKRAINE, NO TO KUCHMISM\". THEY WERE LED OUT OF THE POLICE
ENCIRCLEMENT BY THE SOCIALIST PARTY PARLIAMENTARIAN VINSKY. ON AUGUST
24, THE SOCIALISTS PUT UP A TENT FOR HALF A DAY IN GORODETSKY STREET
NEAR KHRESHCHATYK STREET IN KIEV AND CIRCULATED ANTI-KUCHMA LEAFLETS.
THE VOICE OF UKRAINE ALSO BRIEFLY REPORTS ABOUT SMALL ANTI-KUCHMA
DEMONSTRATION ON THE INDEPENDENCE DAY IN KIEV AND THE OPPOSITION\'S
ALTERNATIVE INDEPENDENCE DAY GALA MEETING IN KIEV.

SEVASTOPOL

ACCORDING TO THE SBU OFFICE IN SEVASTOPOL, THE SBU HAS PUT AN END TO THE
OPERATIONS OF THE NEO-FASCIST GROUP OF SKINHEADS IN SEVASTOPOL. THEY HAD
PLANNED TO STAGE UNREST DURING THE VISIT TO SEVASTOPOL IN LATE JULY OF
THE UKRAINIAN AND RUSSIAN PRESIDENTS. ONE MEMBER OF THE GROUP HAS BEEN
ARRESTED FOR THE ILLEGAL POSSESSION OF EXPLOSIVES.

E. CONTRABAND

KIEV

THE INTERNET NEWSPAPER FORUM WRITES THAT THE BANKRUPT BANK UKRAYINA WAS
THE FOUNDER OF THE COMPANY WHICH SMUGGLED WEAPONS THROUGH MOLDOVA. A
PLANE BELONGING TO THIS COMPANY WAS DETAINED IN MOLDOVA IN 1999 WITH A
CARGO OF WEAPONS ON BOARD. HALF A YEAR LATER, AFTER UKRAINE MADE
CONCESSIONS TO MOLDOVA IN THE BORDER TALKS, THE PLANE DISAPPEARED
WITHOUT A TRACE FROM MOLDOVA. EVHEN MARCHUK\'S SON WAS THE
REPRESENTATIVE OF THIS. YUSHCHENKO\'S BROTHER, PETRO YUSHCHENKO, WAS
AMONG THE FOUNDERS OF THE COMPANY WHICH OWNED THE PLANE.

G. HEALTH

LVIV

ON AUGUST 13 THREE PEOPLE HAVE BEEN ARRESTED IN LVIV FOR REMOVING
KIDNEYS FROM THE VICTIMS OF TRAFFIC ACCIDENTS.

MYKOLAYIV OBLAST

THE GOVERNMENT HAS CONCLUDED THAT LAST YEAR\'S MASS POISONING OF
RESIDENTS OF SEVERAL VILLAGES IN MYKOLAYIV OBLAST WAS CAUSED BY THE
PROLONGED BURNING BY VILLAGERS OF THE CABLES REMOVED FROM AN OLD SOVIET
MILITARY DUMP.

DNIPROPETROVSK

THE EPIDEMIC OF TUBERCULOSIS HAS BEEN DECLARED IN THE DNIPROPETROVSK
OBLAST.

H. PROSTITUTION

DNIPROPETROVSK

A LOCAL NEWSPAPER WROTE ABOUT AN INVESTIGATION BY POLICE INTO
TRAFFICKING IN WOMEN FOR SEXUAL EXPLOITATION ABROAD.

I. CORRUPTION

UKRAINE

ON SEPTEMBER 4, THE PROSECUTOR GENERAL MYKHAILO POTEBENKO PLANS TO
REVEAL IN THE RADA THE NAME OF A FORMER RADA DEPUTY WHO ALLEGEDLY
ORDERED THE ASSASSINATION OF PARLIAMENTARIANS VADYM HETMAN AND YEVHEN
SHCHERBAN. POTEBENKO WILL SEEK THE RADA'S APPROVAL FOR PROSECUTION OF
THE SUSPECT.

KIEV

ON AUGUST 5 THE PROSECUTOR GENERAL, MYKHAILO POTEBENKO CLAIMED THAT
VADYM DOLGANOV, PRESIDENT OF THE NATIONAL TV COMPANY, PUT PRESSURE ON
HIM TO STOP CRIMINAL INVESTIGATIONS AGAINST THE JUSTICE MINISTER AND
DOVGANOV'S WIFE, SUZANNA STANIK. THE PROSECUTOR GENERAL POTEBENKO LINKED
DOLGANOV\'S CRITICAL PROGRAMS ON UT-1 ABOUT THE PROCURACY AND ALLEGED
CORRUPTION OF POTEBENKO\'S SON, AN OFFICIAL OF THE CUSTOMS SERVICE, TO
THE PROCURACY\'S INVESTIGATION AGAINST DOVGANOV'S WIFE, SUZANNA STANIK.

IN AN INTERVIEW IN A LOCAL NEWSPAPER ON AUGUST 20, THE PROSECUTOR
GENERAL POTEBENKO SAID THE FOLLOWING: LAZARENKO ORDERED THE MURDERS OF
VADYM HETMAN AND YEVHEN SHCHERBAN. AT THE BEGINNING OF THE RADA SESSION
IN SEPTEMBER THE PROCURACY WILL FORMALLY REQUEST THE RADA TO ALLOW THE
PROSECUTION OF LAZARENKO ON THESE CHARGES. POTEBENKO PRESSES THROUGH
DIPLOMATIC CHANNELS FOR LAZARENKO\'S EXTRADITION FROM THE U.S. TO
UKRAINE. POTEBENKO COULD NOT PREVENT LAZARENKO\'S ESCAPE FROM UKRAINE
BECAUSE LAZARENKO HAD PARLIAMENTARY IMMUNITY FROM PROSECUTION AT THE
TIME. LAZARENKO ESCAPED FROM UKRAINE TO MOLDOVA BY CAR. POTEBENKO
CONDEMNS THE PRESIDENT OF THE NATIONAL TV COMPANY DOLGANOV FOR
THREATENING TO REVEAL COMPROMISING MATERIALS ABOUT POTEBENKO\'S SON, A
SENIOR CUSTOMS OFFICIAL. POTEBENKO THREATENS THAT HE WILL REVEAL THE
REAL FACE OF DOLGANOV, AND URGES DOLGANOV TO RESIGN. POTEBENKO THREATENS
THAT HE WILL REVEAL IN THE RADA WHAT IS GOING ON IN THE JUSTICE MINISTRY
WHICH IS HEADED BY DOLGANOV\'S WIFE SUZANNA STANIK. SHORTLY BEFORE HIS
MURDER, THE TV REPORTER FROM DONETSK OBLAST, ALEKSANDROV APPLIED TO THE
PROSECUTOR GENERAL OFFICE AND ASKED FOR PROTECTION. THE PROSECUTOR
GENERAL OFFICE SENT ALEKSANDROV\'S REQUEST TO THE PROCURACY IN DONETSK
OBLAST. POTEBENKO DOES NOT PLAN TO RESIGN.

PARLIAMENTARIAN GRYGORIY OMELCHENKO HAS SAID THAT PRESIDENT KUCHMA GAVE
LAZARENKO A BRIBE OF \$ 3.7 MILLION. ACCORDING TO GRYGORIY OMELCHENKO,
LAZARENKO TRANSFERRED THIS SUM TO KIEV STAR, A TELEPHONE COMPANY OWNED
BY PRESIDENT KUCHMA\'S DAUGHTER RIGHT AFTER LAZARENKO\'S APPOINTMENT AS
UKRAINE\'S PRIME MINISTER.

ON AUGUST 29 A LOCAL INTERNET SITE CARRIED NEW MAJOR MELNYCHENKO\'S
TAPES. PRESIDENT KUCHMA, THE THEN HEAD OF NAFTOGAZ UKRAYINY BAKAY AND
PARLIAMENTARIAN VOLKOV TALK 20 DAYS BEFORE THE FIRST ROUND OF 1999
PRESIDENTIAL ELECTIONS. BAKAY SWEARS TO KUCHMA THAT HE HONORS HIS
COMMITMENTS AND PAYS FOR PRESIDENT KUCHMA\'S ELECTION CAMPAIGN. VOLKOV
SAYS THAT UNSPECIFIED \"THEY\" HAVE PROVIDED USD 54 MILLION WITHOUT ANY
DOCUMENTATION. BAKAY SAYS THAT HE HAS DONATED UAH 48 MILLION AND USD 14
MILLION. KUCHMA ACCUSES BAKAY OF CHEATING HIM. KUCHMA SAYS THAT BAKAY
PROMISED HIM USD 250 MILLION FOR KUCHMA\'S ELECTION CAMPAIGN. VOLKOV
SAYS THAT BAKAY GAVE ONLY USD 12 MILLION. VOLKOV DEMANDS THAT BAKAY
SHOULD GIVE USD 25 MILLION IMMEDIATELY, PLUS USD 20 MILLION. KUCHMA
EXPLAINS THAT USD 20 MILLION MORE ARE NEEDED FOR THE RUN-OFF. BAKAY
PROMISES THAT ON TUESDAY HE WILL GIVE VOLKOV USD 25 MILLION AND USD 20
MILLION MORE BY NOVEMBER 3.

A LOCAL NEWSPAPER SEPCULATED THAT THE FORMER NATIONAL BANK GOVERNOR
VADYM HETMAN COULD HAVE BEEN MURDERED IN CONNECTION WITH HIS INVOLVEMENT
IN THE PURCHASE OF THE NUCLEAR FUEL IN RUSSIA FOR THE UKRAINIAN NUCLEAR
POWER PLANTS, IN WHICH THE NATIONAL BANK AND YUSHCHENKO WERE ALSO
INVOLVED. THE NEWSPAPER ALSO SPECULATED THAT THE MURDER OF HETMAN COULD
HAVE BEEN LINKED TO THE YUSHCHENKO-BLESSED ACTUAL PRIVATIZATION BY
HETMAN OF THE LUCRATIVE UKRAINIAN HARD CURRENCY EXCHANGE.

ON AUGUST 16 A LOCAL NEWSPAPER CARRIED AN INTERVIEW WITH DERKACH\'S
RELATIVE, FORMER HEAD OF THE UKRAINIAN CUSTOMS SERVICE IN VOLYN OBLAST,
GENERAL CHERNYSHOV. AFTER FIVE MONTHS IN THE PRE-TRIAL CUSTODY IN
GERMANY HE RECEIVED A SUSPENDED JAIL SENTENCES FOR SMUGGLING. HE WAS
DEPORTED TO UKRAINE. GENERAL CHERNYSHOV SAYS THAT THE UKRAINIAN CUSTOMS
OFFICIALS ARE FORCED TO CONDONE SMUGGLING ACROSS THE UKRAINIAN BORDER.

THE PARLIAMENTARY COMMITTEE FOR COMBATING ORGANIZED CRIME AND CORRUPTION
HAS URGED THE PROCURACY TO INVESTIGATE INTO THE UNLAWFUL ACTIVITIES OF
THE AZAROV-LINKED CHARITABLE FOUNDATION \"PROFESSIONAL\" WHICH ILLEGALLY
SELLS THE PROPERTY SEIZED BY THE TAX ADMINISTRATION FROM BUSINESSES FOR
THE TAX ARREARS.

THE ATTORNEY OF THE FORMER DEPUTY HEAD OF THE STATE-RUN COMPANY \"KHLIB
UKRAYINY\", MEKHANEV HAS SAID THAT INVESTIGATORS TORTURED HIS CLIENT IN
THE PRE-TRIAL CUSTODY IN A BID TO EXTORT HIS CLIENT\'S CONFESSION ABOUT
LAZARENKO\'S INVOLVEMENT IN THE MURDER OF YEVGEN SHCHERBAN AND HETMAN.

ODESA

ON AUGUST 6 THE DEPUTY DIRECTOR OF THE SBU DEPARTMENT FOR COMBATING
ORGANIZED CRIME IN ODESA, COLONEL YEVGEN ZADOROZHNIY HAS BEEN SHOT DEAD
FROM AN AUTOMATIC RIFLE OUTSIDE HIS HOUSE IN ODESA.

THE PRESS REPORTS ABOUT YESTERDAY\'S (AUGUST 7) CONTRACT KILLING OF THE
SENIOR SBU OFFICER IN ODESA, HEAD OF THE SBU\'S ANTI-CORRUPTION
DEPARTMENT IN ODESA, BY A GUNMAN.

ACCORDING TO A LOCAL INTERNET SITE, AT THE TIME OF THE MURDER, THIS
OFFICER WAS NO LONGER HEAD OF THE SBU\'S ANTI-CORRUPTION DEPARTMENT**.**
THE INTERNET SITE REPORTS THAT HE HEADED THE DEPARTMENT IN CHARGE OF THE
PENAL SYSTEM. THE LOCAL INTERNET SITE SPECULATES THAT THE MURDER OF THE
SBU OFFICER IN ODESA MIGHT BE LINKED TO THE RECENT ESCAPE OF A DETAINED
SUSPECT FROM THE SBU DETENTION CENTER IN ODESA.

A KIEV NEWSPAPER WROTE ABOUT THE CRIMINAL TIES OF CHIEF OF POLICE IN
ODESA OBLAST, GRYGORENKO. THE NEWSPAPER WROTE ABOUT INVOLVEMENT OF THE
ODESA OBLAST POLICE IN RACKET, MURDERS AND KIDNAPPINGS OF BUSINESSMEN
AND ABOUT THE WAR BETWEEN THE REGIONAL SECURITY SERVICE AND CRIME-RIDDEN
POLICE FORCE IN ODESA OBLAST. TWO POLICE OFFICERS WHO AGREED TO
COOPERATE WITH SBU AND TO TESTIFY ABOUT CRIMINAL TIES OF THE CHIEF OF
POLICE IN ODESA OBLAST, GRYGORENKO, WERE MURDERED. THE NEWSPAPER WROTE
THAT THE RECENTLY MURDERED SENIOR SBU OFFICER IN ODESA COULD HAVE BEEN
THE VICTIM OF THIS WAR.

CRIMEA

A KIEV NEWSPAPER WROTE ABOUT THE SPATE OF MOB KILLINGS OF UNCOOPERATIVE
BUSINESSMEN IN THE CRIMEA. THE NEWSPAPER WRITES THAT IT APPEARS THE MOB
IS TRYING TO REGAIN CONTROL OF THE CRIMEA, WHICH IT HAD IN THE MID 90S.

**U.S. EMBASSY KIEV REGIONAL SECURITY**