Putin in Ukraine amid political storm

Kuchma has denied involvement in a journalist's disappearance

DNIPROPETROVSK, Ukraine -- Russian President Vladimir Putin is in Ukraine for talks with President Leonid Kuchma but the visit faces being overshadowed by political scandal.

Putin arrived in the industrial city of Dnipropetrovsk -- 200 miles south-east of the capital Kiev -- hours after 5,000 protesters marched through the capital Kiev on Sunday to demand Kuchma's resignation.

A coalition of opposition groups is pressing for Kuchma's resignation or impeachment over tapes recorded secretly last year that purport to show Kuchma ordering officials to "deal with" a critical journalist.

Heorhiy Gongadze, who had criticised Kuchma, went missing in September 2000 in what many Ukrainians describe as a political case and a decapitated body, believed to be his, was found in November.

A headless corpse, the DNA of which police say is likely Gongadze's, was found outside the capital Kiev in November.

The latest protests came one day after Kuchma sacked the head of his security service and the chief of the state bodyguard service.

Putin said the tensions would not affect his visit, calling the situation an "internal political struggle" and a "sign of a normal democratic society."

"Certainly we are aware of the acute political problems," Putin said in Austria. But he added, "We do not intend to pause cooperation with Ukraine."

Since the Soviet collapse, ties between Russia and Ukraine have been marred by disputes over energy supplies and mutual accusations of discrimination against minorities -- Russians in Ukraine and Ukrainians in Russia.

But before his visit Putin said: "Relations on the post-Soviet territory are a priority for us, especially with Ukraine, our largest partner."

Space programme

He and Kuchma opened talks on Monday at the huge Yuzhmash aerospace factory, a former missile plant now producing civilian rocket boosters. Kuchma served as the plant's director between 1986 and 1992.

"This company is one of the foremost in rocket-building," Putin noted. "Over the past years, Russia and Ukraine have practically achieved leadership in this sphere. We have all the chances to preserve this leadership."

The two nations are cooperating in the Sea Launch programme with U.S. giant Boeing to launch satellites from converted sea-based oil drilling platforms, using Yuzhmash boosters. Kuchma and Putin also planned to sign an agreement on joint launches from Kazakstan's Baikonur cosmodrome, and to discuss a plan to coordinate their nations' energy systems with the goal of exporting electricity to other nations, officials said.

Ukraine is one of the world's largest energy consumers and depends heavily on natural gas supplies from Russia.

Moscow estimates Ukraine's gas debt at about $2 billion, while Ukraine estimates it at $1.4 billion. Ukrainian and Russian leaders said last December that they had agreed on a schedule for Ukraine to repay its debts.

Meanwhile, Russia -- which has accused Kiev of siphoning off gas from export pipelines running through its territory -- has launched a project to build a pipeline through Belarus, Poland and Germany, bypassing Ukraine.

The Gongadze case is significant at this time because it has alarmed foreign governments and investors, many of whom are increasingly wary of putting money into the impoverished former Soviet republic until the political situation stabilises.

The disappearance prompted the European Union to call for a full inquiry into the incident, saying Ukrainian authorities had so far failed to investigate the case thoroughly.

The Gongadze case has developed into the biggest political scandal in Ukraine in a decade, although political analysts doubt whether Kuchma's grip on power is slipping.

Several major multinationals have put investment and recruitment plans on hold to await Kuchma's fate. Some are pulling expatriate staff out of the capital, members of a European trade delegation to Ukraine said this week.

Ukrainiains step up pressure on Kuchma
February 11, 2001
Ukraine's Kuchma sacks security chiefs
February 11, 2001
Ukraine's Kuchma facing calls to quit
February 9, 2001
Ukraine witnesses people power
February 8, 2001
Ukrainians urge president to quit
February 6, 2001
DNA tests aid Ukrainian body mystery
January 10, 2001
Reward offered for missing Ukrainian
December 18, 2000

Ukrainian Parliament
Ukraine

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