[Congressional Record Volume 148, Number 32 (Tuesday, March 19, 2002)]
[Extensions of Remarks]
[Pages E385-E386]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TRADE WITH UKRAINE

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                           HON. BOB SCHAFFER

                              of colorado

                    in the house of representatives

                        Tuesday, March 19, 2002

  Mr. SCHAFFER. Mr. Speaker, last week, I posted letters to the 
President of Ukraine, Mr. Leonid Kuchma, and the Prime Minister of 
Ukraine, Anatoliy Kinakh regarding a pending incident in Ukraine 
involving an American-

[[Page E386]]

based company. Cargill International is the owner of the cargo aboard a 
Liberian shipping vessel, the MV Monarch, which has been seized and the 
contents impounded by the Ukrainian government. Thirty-five thousand 
metric tons of sugar carried on the ship was to be delivered in 
Ukraine. However, the seizure of the product has raised serious 
questions among our colleagues regarding the risks associated with 
Ukrainian trade and the desirability of Ukraine as a stable, reliable 
trading partner.
  As you know Mr. Speaker, I remain a firm advocate of enhanced trade 
relationships between Ukraine and the United States, and believe this 
House should aggressively pursue prudent policies which draw the two 
democracies together, and for a variety of strategic and humanitarian 
reasons. While the pending episode is rightfully regarded by some here 
as a serious impediment to the maturation of trade relations, I am 
hopeful it will be resolved soon. I am mindful indeed of the 
significance of the dispute which is why I have taken to the floor 
today to alert our colleagues to the actions I have taken so far in 
this matter.
  In addition to speaking personally to Ukraine's ambassador about the 
need to resolve the issue of Cargill's sugar shipment, I have been in 
regular contact with our embassy in Kyiv, our ambassador there, 
multiple U.S. business representatives, and many of my contacts in the 
Ukrainian government and in Ukraine's parliament, the Verkhovna Rada. 
The nature of my conversations follow the text of the letters I 
conveyed to Ukraine's president, and prime minister which I hereby 
submit for the Record.

                                                   March 14, 2002.
     His Excellency Leonid Kuchma,
     President of Ukraine,
     Ukraine.
       Dear Mr. Kuchma: Your immediate attention, intervention, 
     and response to Ukraine's confiscation of property belonging 
     to an American-based corporation, Cargill International SA, 
     CISA, is hereby requested. I strenuously urge you to help me 
     resolve this extremely volatile situation which is clearly 
     capable of damaging the relationship between our nations. As 
     you know, I have devoted six years of my service in the U.S. 
     Congress toward improving the Ukrainian/US relations, and I 
     am fearful much of our recent progress will be lost to the 
     current episode involving the seizure of cargo, legally the 
     property of CISA, by Ukraine's Black Sea Regional Customs 
     authority.
       The ship, MV Monarch, carrying 35,000 metric tons of raw 
     cane sugar was seized in January 2002. The stated grounds for 
     seizure, namely the alleged inability to substantiate the 
     existence of an American company involved in the transaction, 
     have been resolved. However, neither the ship, nor its cargo, 
     have been released. In fact, the latest information indicates 
     the ship has been moved to berth at a port in Illychivesk, 
     where off-loading has commenced, and the security of the 
     product is in jeopardy.
       The international implications of this issue are quite 
     serious. American product being unjustly detained, 
     confiscated and off-loaded will certainly damage Ukraine's 
     desirability as an international market and trade partner. 
     The sugar cargo in question is clearly the property of CISA 
     and is being off-loaded without the owner's consent. Your 
     intervention and leadership in resolving this situation would 
     do much to restore and maintain Ukraine's commitment to 
     freemarkets and reliable international relations. Thank you 
     in advance for your urgent attention to this serious matter.
       As always, I am at your disposal to engage any meaningful 
     effort advancing our nations' friendship and cooperation.
           Very truly yours,

                                                 Bob Schaffer,

                                               Member of Congress,
                       Co-Chairman Congressional Ukrainian Caucus.

     

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