Nursery school opening IT business solutions
• • •
HTEN BRIG R THEI RE FUTU
INTERNET s TELEPHONY s NETWORKING
First nursery school teaching in English, French and Ukrainian Classes for ages 2 through 7 years All teachers native-speakers of English or French i Located near Maidan Nezalezhnost d limite size class ; soon Call
+380 44 591-11-11 www.citynet.ua
5/24, Irynynska street. Kyiv • Tel.: +(38) 050 448 46 46
THE TRILINGUAL NURSERY ENGLISH FRENCH RUSSIAN/UKRAINIAN
www.ptitcref.com • kiev@ptitcref.com
%MPLOYMENT
&AIR
Kyiv Post Job Fair Come to the Kyiv Post Employment Fair on June 4, from 10 a.m. to 5 p.m. at 33 Velyka Zhytomyrska St.
Case of Mistaken Identity? Authorities say John Demjanjuk’s wartime identity card proves he was a death camp guard, but some think the ID is a Soviet forgery. B Y N ATA L I A A . FEDUS C HAK FEDUSCHAK@KYIVPOST.COM
DUBOVI MAKHARYNTSI, Ukraine – This central Ukraine village gave birth to two Ivan Demjanjuks one year apart. One, known to the world as John Demjanjuk, was convicted by a German court on May 12 of being an accessory to the murder of 28,060 Jews at a Nazi death camp. The other one hanged himself in 1971, shortly after he learned that Soviet KGB agents came to the village looking for him. The strange coincidence and diverging fates of the two Ivan Demjanjuks from Dubovi 14
BY V L A D L AV R OV LAVROV@KYIVPOST.COM
The life of foreign investors in Ukraine, a nation that is one of the hardest places to do business, may even get tougher. But this time, it’s not exactly the Ukrainian government’s fault. From now on, in addition to working in a highly corrupt business environment, representatives of international companies will have to take into account increased scrutiny on bribery and corruption by law enforcement agencies in their own countries.
Poroshenko: Will not run in 2015 race B Y I R I N A SA N D U L SANDUL@KYIVPOST.COM
Petro Poroshenko arrives in a golden Mercedes with a driver and guards. His schedule is tight, but the Kyiv Post nonetheless gets 35 minutes of energetic conversation. Ukraine’s chocolate king, politician, ex-minister of foreign affairs and supervisory board chairman of the National Bank of Ukraine has an impressive array of assets. He is co-owner of Ukrprominvest, which includes the Bogdan auto company, the Roshen confectionery, Channel 5 and – in a recent acquisition – KP Media, the publisher of Korrespondent magazine and the korrespondent.net news site. According to the Ukrainian version of Forbes, the 45-year-old Poroshenko is the 13th richest Ukrainian with wealth estimated at $866 million. In this interview, while fiddling with beads in his hands, he talked about his new acquisitions, whether he wants to become president of Ukraine, corruption, free speech and why he doesn’t eat chocolate, even his own. KP: Do you like chocolate? PP: I love chocolate. But I don’t eat it. In 1998, after quite tense parliamentarian elections, I fell sick with diabetes. But sometimes, when nobody is looking, I … (smiles).
John Demjanjuk leaves court after his conviction on May 12 in Munich, Germany. The court found him guilty of helping to kill almost 30,000 prisoners during World War II while serving as a guard at the Sobibor death camp in Poland. The judge sentenced Demjanjuk to five years in prison, but freed the 91-year-old former U.S. citizen because of age. He says he is a victim of the Nazis, who captured the Ukrainian native in 1942 and took him prisoner. (AFP/ Christof Stache)
West warns investors off bribery in nation
Inside:
June 3, 2011
www.kyivpost.com
vol. 16, issue 22
Rewards for whistleblowers who bring such abuses to light are also either in place or being put into place. After the United Kingdom Bribery Act goes into effect on July 1, bribes given anywhere in the world by companies with U.K. business interests are subject to the British legal system. It means that if an employee of an international company, its subsidiary, partner, agent, or contractor gives a bribe in Ukraine for the company’s benefit, this would be considered a crime in the U.K. And in many cases, having a business presence in the U.K. could mean
News Opinion
Advertising: +380 44 234-65-03 advertising@kyivpost.com
as little as selling products there. According to the new legislation, citizenship of a person who committed an act of corruption makes no difference. Robert Amaee, a lawyer with the London office of Covington & Burling, said the legislation represents a breakthrough with a provision that does not allow top managers to be exempt, even if they prove that they didn’t know anything about the corrupt actions of their subordinates. “If a bribe is paid, your only defense is to stand up and say we have great procedures in place that were adequate
2, 13 – 14
Business
4, 15
Lifestyle
to stop this bribe being paid. But this man went off and did his own thing,” said Amaee, who formerly headed AntiCorruption and Proceeds of Crime at the UK Serious Fraud Office. Covington & Burling is one of the world’s most reputable legal firms. Its former partner, Eric Holder, is the U.S. attorney general, the nation’s top law enforcer. Yulia Tymoshenko, Ukraine’s former prime minister, recently hired the firm to be part of her legal team defending her against charges of misusing $300 million in government money that Ukraine received from sell5
5 – 13
Employment/Real Estate/ 21 – 23 16 – 20, 24 Classifieds
Editorial staff: +380 44 234-65-00 news@kyivpost.com
Subscriptions: +380 44 234-64-09 subscribe@kyivpost.com
KP: Do you produce chocolate for people with diabetes? PP: No. It’s easier to eat a little bit of a natural product, for example, Roshen chocolate, than to eat a substitute of it for people with diabetes. 13
SPECIAL BUSINESS FOCUS ON AGRICULTURE INSIDE: • American family proves that persistence pays off. Page 8 • Kraft Foods’ George Logush talks about how to succeed in food sector. Page 9 • Nation can profit amid surging food demand. Page 10
2 News
JUNE 3, 2011
www.kyivpost.com
June 3, 2011
Vol. 16, Issue 22 Copyright © 2011 by Kyiv Post The material published in the Kyiv Post may not be reproduced without the written consent of the publisher. All material in the Kyiv Post is protected by Ukrainian and international laws. The views expressed in the Kyiv Post are not necessarily the views of the publisher nor does the publisher carry any responsibility for those views. Газета “Kyiv Post” видається ТОВ “ПаблікМедіа”.
Щотижневий
наклад
25,000
прим. Ціна за домовленістю. Матерiали, надрукованi в газетi “Kyiv Post” є власнiстю видавництва, захищенi мiжнародним та українським законодавством i не можуть бути вiдтворенi у будь(якiй формi без письмового дозволу Видавця. Думки, висловленi у дописах не завжди збiгаються з поглядами видавця, який не бере на себе вiдповiдальнiсть за наслiдки публiкацiй. Засновник ТОВ “Паблік-Медіа” Головний редактор Брайан Боннер Адреса видавця та засновника співпадають: Україна, м. Київ, 01034, вул. Прорізна, 22Б Реєстрацiйне свiдоцтво Кв № 15261(3833ПР від 19.06.09. Передплатний індекс ДП Преса 40528 Надруковано ТОВ «Новий друк», 02660, Київ, вулиця Магнітогорська, 1, тел.: 559-9147 Замовлення № 11-4635 Аудиторське обслуговування ТОВ АФ “ОЛГА Аудит” З приводу розміщення реклами звертайтесь: +380 44 234-65-03. Відповідальність за зміст реклами несе замовник.
Mailing address: Kyiv Post, Prorizna Street 22B, Kyiv, Ukraine, 01034 Advertising tel. +380 44 234-65-03 fax +380 44 234-63-30 advertising@kyivpost.com Editorial staff tel. +380 44 234-65-00 fax +380 44 234-30-62 news@kyivpost.com Subscriptions Nataliia Protasova tel. +380 44 234-64-09 fax +380 44 234-63-30 subscribe@kyivpost.com Distribution Serhiy Kuprin tel. +380 44 234-64-09 fax +380 44 234-63-30 distribution@kyivpost.com Marketing Iuliia Panchuk tel. +380 44 234-30-40 fax +380 44 234-63-30 marketing@kyivpost.com
www.kyivpost.ua: дайджест статей Georgiy Gongadze (L), whose hard-hitting journalism irritated ex-President Leonid Kuchma, was murdered on Sept. 16, 2000. Kuchma is charged with exceeding his authority, but not murder, in the case. (AP, Joseph Sywenkyj)
МНЕНИЕ: Влада боїться української армії більше, ніж іноземної Андрій Пишний Відлунали святкові парадні заяви влади про захист Батьківщини, і все передбачувано стало на свої місця. Ніхто Батьківщину вже не захищає, принаймні у владі. Як заявив заступник директора Департаменту озброєння та військової техніки Міністерства оборони Сергій Бруль, вперше в історії незалежної України наступного року на військо планують виді- Андрій Пишний лити менше 1 відсотка ВВП – 0,84%. Хоча для підтримки нормального рівня обороноздатності варто витрачати на Збройні Сили мінімум два відсотки валового внутрішнього продукту, а закон України про оборону взагалі передбачає 3%...
Prosecutor: Kuchma abused power, but didn’t order murder B Y Y U R I Y O N YSH K I V ONYSHKIV@KYIVPOST.COM
Adding even more confusion to the sad saga of the unsolved Sept. 16, 2000, murder of journalist Georgiy Gongadze, General Prosecutor Viktor Pshonka said that former President Leonid Kuchma is not suspected of ordering the murder. But the former leader is suspected of “exceeding his authority” as president in giving orders that led to the journalist’s death. His remarks only raised more fears of a continuing cover-up. “In the end, the investigation came to the conclusion that the responsibility for this event should be laid upon the former head of the Interior Ministry [Yuriy Kravchenko] and former President [Leonid Kuchma],” Pshonka said in a May 28 interview with the Zerkalo Nedeli weekly. “Kuchma had no intent for the end result of this tragedy.” Kravchenko died of two gunshot wounds to the head on March 4, 2005. Authorities called them selfinflicted but his death remains suspicious. Kuchma, meanwhile, left power in 2005 after a decade of rule. However, Pshonka didn’t bother explaining the contradiction between the conclusion that Kuchma is responsible yet also had no intent on murder. The prosecutor general also did not provide any details of exactly what role Kuchma is suspected of having in the beheaded journalist’s kidnapping and brutal murder. So, according to prosecutors,
БИЗНЕС: Большой брат следит за тобой! Как украинские компании контролируют сотрудников Мария Шамота Хотите знать, чем занимается ваш сотрудник? Наймите детектива. Через парутройку дней он положит вам на стол отчет, в котором укажет, в самом ли деле ваш подчиненный валялся дома с температурой. Некоторые западные предприниматели так поступают и узнают, как их коллега болел гриппом, скажем, на пляже у моря. Украинские работодатели тоже стараются контролировать своих сотрудников, однако настолько жесткий контроль для них не характерен, уверяют HR специалисты. Пока. Ведь большой братработодатель начинает следить за подчиненными все более усердно... КИЕВ: Рыночные отношения по-киевски: рейды, сносы, поджог Светлана Тучинская Майские новости с киевских рынков больше напоминают сводки из зон военных и гражданских конфликтов: драки, сносы, рейды и поджоги. После массового сноса киосков на рынке возле метро Лесная и разборок на территории Владимирского рынка, последней жертвой безобразий стал рынок "Виноградарь". Ранним утром 30 мая там сгорел весь вещевой рынок, здание администрации и несколько крупных магазинов. Все, что осталось от "Виноградаря" - продуктовые ряды и мясной павильон. Огонь был такой силы, что пожарникам пришлось тушить его два с половиной часа. На рынках неофициально говорят, что, судя по всему, начался передел Рынок «Виноградарь» после пожара собственности... Полный текст статей и блогов можно прочитать на www.kyivpost.uа
Kuchma might be convicted of a crime yet face no punishment unless the court waives the statute of limitations. In such an event, authorities say Kuchma could get up to 12 years in prison. The prosecutors base their evidence partly on the tapes recorded by Kuchma’s former bodyguard, Mykola Melnychenko, in 2000. “Take care of him,” a voice resembling Kuchma’s said on a recording dated June 12, 2000. In another recording, Kuchma reportedly said of Gongadze: “We need some Chechens to kidnap him for ransom.” Kuchma and senior officials in his administration have long been suspected by critics and Gongadze’s widow, Myroslava, of playing a role in the murder and the subsequent cover-up. Valentyna Telychenko, lawyer of Gongadze’s widow Myroslava, said prosecutors are not interested in bringing Kuchma to justice. Telychenko has been studying the materials of the case for two months, but has not yet been shown the investigators’ document detailing the official charges against Kuchma. “In my opinion, the prosecutor’s office did not and still does not intend to establish the truth, to show who ordered the murder, and does not think Kuchma ordered it,” Telychenko said. “A negligently conducted investigation may end in acquittal of the ex-president.” Kyiv Post staff writer Yuriy Onyshkiv can be reached at onyshkiv@kyivpost. com
TEN MOST-READ STORIES OF THE WEEK ON
ДЕСЯТЬ САМЫХ ЧИТАЕМЫХ СТАТЕЙ НЕДЕЛИ НА
www.kyivpost.com
www.kyivpost.ua
1
American comes up empty-handed in 10-year search for Ukrainian wife
2
Town Rebounds
3
Tymoshenko faces charges in 2009 deal
4
5
Yushchenko afraid of being jailed
Exceedingly sad
6
Patipa nightclub crowded, fun
1
Взрывы прогремели в магазинах IKEA в Бельгии, Нидерландов и Франции
7
Hungary’s media law should not come here
2
Луценка не випустять на волю
7
Чрезвычайно грустно
8
Has New Zealand contest winner found a Ukrainian girlfriend?
3
Тігіпко погрожує піти у відставку
8
Мокрый выпускной
Government cancels grain export quotas; will impose duties
4
9
10
Kyiv Post Job Fair expected to draw thousands amid signs of brighter economic times
5
Новая беда в Японии: тайфун
Черговий земляк Януковича. Досьє на нового міністра охорони здоров’я
6
Іноземці починають боротьбу з корупцією в Україні
9
10
Тимошенко думает, что Янукович после «публичного театра» уволит Азарова Сборная Украины по футболу обыграла Узбекистан. Легионеры помогли
www.kyivpost.com
3
June 3, 2011 Advertisement
European Business Association News
www.eba.com.ua
,IVE #OVERAGE 4AX #ODE OF 5KRAINE 'ETS -AKEOVER
/
N !PRIL 5KRAINIAN -0S HAVE VOTED OVERWHELMINGLY TO ADOPT THE $RAFT ,AW m/N !MENDING THE 4AX #ODE AND #ERTAIN ,EGISLATIVE !CTS OF 5KRAINE n IN THE FIRST READING /N *UNE THE $RAFT ,AW HAS SUCCESSFULLY PASSED THE SECOND PARLIAMEN TARY READING DEBATE WITH THE FINAL HEARING SCHEDULED FOR *UNE 4HE BILLlS DRAFTSMAN -R 6ITALIY +HOMUTYNNIK #HAIR OF THE 0ARLIAMENTARY #OMMITTEE FOR &INANCE "ANKING 4AX AND #USTOMS 0OLICY STRESSED THAT THE ENACTMENT OF THE $RAFT ,AW WILL LAY A CORNER STONE FOR THE MODERNIZATION OF THE CURRENT 4AX #ODE 4#5 LEGISLATIVE FRAMEWORK SPECIFICALLY SIMPLIFYING EXISTENT VAGUE SCHEMES OF TAX ACCOUNTING AND REPORTING ELIMINATING THE TAXATION PROCEDURESl AMBIGUITIES AND DEFICIENCIES AND REFINING THE TERMINOLOGY OF CURRENT 4AX #ODE NORMS 4HE CURRENT 4AX #ODE EFFECTIVE FROM *ANUARY SPARKLED A CHORUS OF DISCONTENT AMONG THE 5KRAINIAN TAXPAYERS THUS EXPOSING THE NECESSITY TO REDESIGN THE MOST AMBIGUOUS AND CONTROVERSIAL NORMS OF THE CURRENT 4#5 IN ORDER TO STRUCTURE AND HARMONIZE THE MECHANISMS OF THE COUNTRYlS TAXATION SYSTEM THOUGH THE PATH TO RECOVERY IS FORESEEN AS A THORNY ONE
#OMMENT 6/,/$9-92 +OTENKO
#HAIR OF %"! 4AX #OMMITTEE
0ARTNER (EAD OF 4AX IN 5KRAINE %RNST 9OUNG
#HANGING THE 4AX #ODE p CATCH IT IF YOU CAN 4
#ODE IS UNCLEAR ON WHETHER TAXPAYERS WILL HE BEGINNING OF WAS MARKED BY FUNDA BE ABLE TO DEDUCT THESE EXPENSES UPON SALE MENTAL AND FAST REFORM OF THE 5KRAINIAN TAX OF THESE INVENTORIES AFTER !PRIL SYSTEM 4HE DEVELOPMENT AND ENACTMENT OF THE 4AX #ODE WAS SO RAPID THAT NEITHER THE AUTHORITIES ► %XPENSES ON DIRECT INVESTMENT IN SECURITIES NOR THE BUSINESS COMMUNITY WERE QUITE ABLE TO INCURRED BEFORE !PRIL 4HERE IS NO KEEP UP WITH THE CHANGES CLARITY ON WHETHER TAXPAYERS WILL BE ABLE TO RECOGNIZE THESE EXPENSES UPON SALE OF THESE .ATURALLY THE RAPIDLY DEVELOPED TAX LAW HAS SECURITIES AFTER !PRIL NUMEROUS DEFICIENCIES AND INCONSISTENCIES 4HE 0ARLIAMENT HAS ALREADY ADOPTED LAWS THAT AMEND 4AX ADMINISTRATION THE 4AX #ODE 4HE LATEST CHANGES EFFECTED BY ,AW 4HERE ARE A NUMBER OF CONTROVERSIAL RULES OF 5KRAINE .O WHICH THE 0ARLIAMENT ADOPT RELATED TO ADMINISTRATION OF TAXES THAT REQUIRE ED ON -AY HAVE YET TO BE ENACTED BY THE 0RESIDENT 4HESE CHANGES INCLUDE REPEALING THE AMENDMENT
SHOULD NOT QUALIFY AS TAXABLE PERMANENT ESTABLISHMENTS HE 4AX #ODE S REQUIREMENT THAT RESIDENT 4 AGENTS OF NON RESIDENTS REGISTER AS PERMA NENT ESTABLISHMENTS WITH THE TAX AUTHORI TIES SHOULD ALSO BE ABOLISHED ► "ENEFICIAL OWNERSHIP RULES 4HE 4AX #ODE INTRODUCES BENEFICIAL OWNERSHIP AS A PRE CON DITION FOR ANY DOUBLE TAX TREATY RELIEF FOR WITH HOLDING TAX PURPOSES 4HIS IS ALSO A CONDITION FOR THE TAX DEDUCTIBILITY OF CERTAIN EXPENSES UE TO THE POOR DEFINITION OF mBENEFICIAL OWNER n $ THE RULE CANNOT LOGICALLY BE IMPLEMENTED )N ADDITION THERE IS NO INDICATION ABOUT HOW TO PROVE BENEFICIAL OWNERSHIP 5NDER THE DOUBLE TAX TREATIES THE ONLY DOCUMENTED PROOF THAT A NON RESIDENT REQUIRES TO BE ELIGIBLE FOR TREATY PROTECTION IS TAX RESIDENCY CERTIFICATE OF THE STATE THAT IS PARTY TO THE TREATY E FORESEE NUMEROUS CONFLICTS ABOUT THE 7 BENEFICIAL OWNERSHIP RULE IF THE RULE IS NOT NARROWED DOWN TO THE SCOPE THAT IS TYPICAL OF DOUBLE TAX TREATIES
!PART FROM THE ABOVE THERE ARE NUMEROUS GAPS IN THE NEW DEFINITIONS THE 4AX #ODE USES AND IN TAXATION OF CERTAIN TRANSACTIONS SUCH AS THOSE THAT INVOLVE INTELLECTUAL PROPERTY OBJECTS 4HE 4AX #ODE DOES NOT GIVE CLEAR CUT CRITERIA "EING AN ACTIVE PROPONENT OF THE TAXATION SYS FOR DISTINGUISHING ROYALTIES INTANGIBLE ASSETS OR TEM UPGRADE THE %UROPEAN "USINESS !SSOCIATION SERVICE FEES 4HE RULES FOR RECOGNITION AND TAX IS INVOLVED INTO CONSTRUCTIVE DIALOGUE WITH DEPRECIATION OF INTANGIBLE ASSETS ARE QUITE VAGUE 5KRAINIAN 'OVERNMENT ON ELABORATING THE 4AX 6!4 EXEMPTION FOR CONSULTING ENGINEERING LEGAL ► 4AX PENALTIES FOR OVERSTATEMENT OF #04 AND DO NOT SEEM REASONABLE 4HIS TO A GREAT #ODE PROVISIONS BENEFICIAL FOR BOTH BUSINESS AND ACCOUNTING )4 AND SIMILAR SERVICES LOSSES OR ACCUMULATED 6!4 CREDIT EVEN IF EXTENT COMPLICATES ACCOUNTING OF COMMONPLACE COUNTRYlS NEEDS MISSTATEMENTS DO NOT RESULT IN TAX UNDERPAY TRANSACTIONS WITH INTELLECTUAL PROPERTY OBJECTS -ORE MATERIAL CHANGES ARE ON THE WAY AND IT MENT SHOULD BE REPEALED 4HE NUMBER OF AMENDMENTS PROPOSED BY THE IS LIKELY THAT THE 4AX #ODE WILL CHANGE AS RAPIDLY 6!4 RELATED ISSUES %"! IS ALREADY EMBROIDERED INTO THE FRAMEWORK AS IT WAS BORN /N !PRIL THE 0ARLIAMENT ► 4 HE RIGHT OF TAXPAYERS TO SUBMIT TAX RETURNS /NE OF THE MAJOR 6!4 RELATED 4AX #ODE OF THE $RAFT ,AW BY MAIL BY THE GENERAL DEADLINE FOR TAX NOVELTIES APART FROM THE NEVER ENDING ISSUES ADOPTED THE DRAFT ,AW m/N !MENDING THE 4AX RETURN SUBMISSION SHOULD BE RESUMED TAX WITH 6!4 REFUND AND 6!4 INVOICES IS THE TAX #ODE OF 5KRAINE AND #ERTAIN ,AWS OF 5KRAINE PAYERS SHOULD NOT HAVE TO SUBMIT THE RETURNS BASE FOR GOODS IMPORTED TO 5KRAINE 4HE 6!4 cn .O IN THE FIRST READING mTHE $RAFT ,AWn 6OICE OF "53).%33 )NSURERS DAYS BEFORE THE DEADLINE 4HE 0ARLIAMENTARY COMMITTEE ON TAX AND CUS BASE UPON BOTH IMPORT INTO AND FURTHER SALE TOMS POLICY IS NOW PREPARING THE $RAFT ,AW FOR ► 4 HE 4AX #ODE SHOULD PROVIDE FOR THE RIGHT OF IMPORTED GOODS IN 5KRAINE NOW SHOULD BE THE SECOND READING 4HE COMMITTEE HAS ALREADY TO CONTEST THE TAX AUTHORITIESl DECISIONS NOT LESS THAN THE CUSTOMS VALUE 4HIS MEANS /,'! -AKOGON
PRE APPROVED HUNDREDS OF CHANGES PROPOSED BY ACTS AND OMISSIONS IN COURT AND ESTABLISH A THAT SELLERS OF IMPORTED GOODS NOT EVEN DIRECT 0ARLIAMENT -EMBERS THE #ABINET OF -INISTERS (EAD OF ,EGAL PROPER LIMITATION PERIOD FOR THIS 4HE EFFEC IMPORTERS MUST ALWAYS COMPARE THE CUSTOMS )# 3%" ,IFE 5KRAINE THE .ATIONAL "ANK AND BUSINESS ASSOCIATIONS )T TIVE LAW SIGNIFICANTLY NARROWS THE TIMING VALUE AND CONTRACTUAL PRICE OF PRODUCTS WHICH IS QUITE PROBABLE THAT THE $RAFT ,AW WILL COME AND GROUNDS FOR FILING LAWSUITS AGAINST THE MAY NOT BE PRACTICALLY POSSIBLE INTO FORCE JUST BEFORE THE DEADLINE FOR FILING COR TAX AUTHORITIES 5SING CUSTOMS VALUE AS A BENCHMARK FOR 6!4 PORATE PROFIT TAX #04 RETURNS 4HESE LAST MINUTE PURPOSES IN DOMESTIC SALES OF IMPORTED GOODS #04 RELATED ISSUES CHANGES WOULD REPRESENT A HUGE HEADACHE FOR Draft Law No.8217 is important for insurSHOULD BE ABOLISHED /THERWISE GIVEN THE WELL 4HE #04 RULES HAVE CHANGED SIGNIFICANTLY TAXPAYERS er’s activities touching the alterations KNOWN 5KRAINIAN CUSTOMS PRACTICE OF UNREASON which may be detailed in Article 164 4HIS RUSH COULD HAVE BEEN AVOIDED HAD THE 4AX 4HERE ARE A FEW MATERIAL DEFECTS AND CONTROVER ABLY INCREASING CUSTOMS VALUE UPON IMPORT THIS of the TCU and completed with Clause #ODE NOT BEEN BROUGHT INTO EFFECT IN SO HAST SIES THAT REQUIRE PROMPT AMENDMENT ESPECIALLY RULE COULD RAISE THE 6!4 BURDENS OF IMPORTERS 164.6 as for the order of natural persons’ ILY 5NFORTUNATELY BACK IN THE LAWMAKERS IN THE AREA OF TRANSACTIONS WITH AND TAXATION AND DISTRIBUTORS SKY HIGH )N EFFECT THIS RULE IS A profit taxation, received under civil agreeDID NOT HEAR THE VOICES OF REASON THAT SUGGESTED OF NON RESIDENTS ments treated similar to labor agreeHIDDEN TOOL FOR GOVERNMENTAL PRICE REGULATION FOR POSTPONING THE 4AX #ODE S ENACTMENT AND THUS ► $EDUCTIBILITY LIMITATIONS 2OYALTIES AND FEES ALL IMPORTED GOODS ments taxation. FOR CONSULTING MARKETING ADVERTISING AND PROVIDING TIME FOR REVEALING AND CORRECTING ITS The stated Clause may influence the way ENGINEERING SERVICES THAT ORIGINATE IN 5KRAINE 4AX PENALTIES DEFECTS AND ALLOWING PEOPLE TO ADAPT TO THE NEW of cooperation with insurance agents being natural persons. According to 'IVEN THE NUMBER OF UNCERTAINTIES IN THE 4AX AND GO TO NON RESIDENTS FALL UNDER SIGNIFICANT RULES another Draft Law No.8521 aimed at DEDUCTIBILITY LIMITATIONS OF THE VALUE OF #ODE IT WOULD BE PROPER TO EXEMPT TAXPAYERS 4HE $RAFT ,AW IS CONSTANTLY CHANGING AND ITS amending the TCU with the simplified IMPORTED EQUIPMENT FOR ENGINEERING AND FROM PENALTIES DURING THE TRANSITION PERIOD FINAL WORDING IS AS YET UNKNOWN 4HE NUMBER OF taxation system, natural persons covered OF THE TAXPAYERlS NET SALES OF THE PREVIOUS YEAR %VEN THOUGH THE 4AX #ODE CONTAINS SUCH AN AREAS FOR IMPROVEMENT IS IMMENSE AND SOME CALL by the “unified” tax will not be entitled EXEMPTION ITS WORDING IS QUITE POOR AND IT FOR THE REST OF THE MENTIONED EXPENSES FOR IMMEDIATE AMENDMENT 7E OUTLINE SOME OF to work as insurance agents, unless the leading business associations manage to 4 HESE RULES ARE VAGUE AND UNFAIR TO BONA FIDE ALLOWS VARIOUS INTERPRETATIONS OF ITS SCOPE THESE BELOW lobby the counter. TAXPAYERS &URTHERMORE THEY CONTRADICT THE THERE ALREADY EXIST SEVERAL CONTROVERSIAL TAX 4RANSITIONAL RULES As follows from the above, the current NON DISCRIMINATION PROVISIONS OF THE MAJOR CLARIFICATIONS PERTAINING TO THIS MATTER 5PON TRANSITIONING TO THE 4AX #ODE S RULES TCU (Clause 177.8) can equal the civil 4HE EXEMPTION FROM PENALTIES DURING THE ITY OF EFFECTIVE DOUBLE TAX TREATIES AND WOULD relations with insurance agents to labor TAXPAYERS MAY FACE PROBLEMS WITH RECOGNITION OF INEVITABLY TRIGGER NUMEROUS DISPUTES ON BOTH TRANSITION PERIOD MUST BE REWORDED SO THAT ones, thus leading to dramatic increase CERTAIN EXPENSES THAT THEY INCURRED IN THE PAST IT DOES NOT ALLOW ROOM FOR MISINTERPRETATION THE NATIONAL AND INTERNATIONAL LEVELS
of tax burden to insurers. Presently we still experience a lack of the legal facts’ determination mechanism, but the situation may be changed by amending the Draft Labor Code No.1108 with the relevant regulations.
► !CCUMULATED INTEREST EXPENSES ON LOANS FROM ► 0ERMANENT ESTABLISHMENT ISSUES $ESPITE RELATED NON RESIDENTS THAT FELL UNDER INTEREST SOME PROGRESS WITH THE PERMANENT ESTAB DEDUCTIBILITY LIMITATIONS IN THE PAST 4HESE TAX LISHMENT RULES THE 4AX #ODE STILL IGNORES EXPENSES COULD BE JEOPARDIZED GOING FORWARD CERTAIN INTERNATIONALLY ACCEPTED PRINCIPLES ► %XPENSES RELATED TO ACQUISITION OF INVEN &OR EXAMPLE IT DOES NOT ESTABLISH RULES TORIES BORNE BEFORE !PRIL 4HE 4AX FOR INDEPENDENT AGENTS WHICH NORMALLY
.EW DESIGN OF %"! .EWS #OMING SOON
AND MISUSE 2ECENT TAX AUDIT PRACTICE ALSO REVEALS THAT THE TAX AUTHORITIES APPLY THE 4AX #ODE S PENALTIES RETROACTIVELY WITHOUT PROPER LEGAL GROUNDS 4HE AMENDMENTS TO THE 4AX #ODE SHOULD ELIMINATE THIS PRACTICE
4 Opinion
www.kyivpost.com
June 3, 2011
Editorials
Eternal shame The general prosecutor confirmed this week in a newspaper interview that former President Leonid Kuchma is not suspected of ordering the murder of journalist Georgiy Gongadze in 2000. Since the nation’s ex-leader was first charged in March, critics have complained that prosecuting Kuchma for abuse of power in giving an order that led to the murder of Gongadze was the wrong charge. Many think he should stand trial for nothing less than murder. The comments of General Prosecutor Viktor Pshonka will be seen by many as confirmation that the aim of the prosecution is to clear Kuchma, the political patron of President Viktor Yanukovych, of any serious wrongdoing. Pshonka admitted in the interview with Dzerkalo Tyzhnia that the investigation had always been tainted by politics. This continues to be the case. Yanukovych appears to be killing several birds with one stone in this prosecution. First, the investigation into Kuchma gives the appearance of balance and fairness to the investigations into leading opposition politicians such as former Prime Minister Yulia Tymoshenko and former Interior Minister Yuriy Lutsenko. Second, it brings pressure to bear on Victor Pinchuk, Kuchma’s son-in-law who acquired great wealth during his father-in-law’s decade-long term in office. Some observers say the aim is to force Pinchuk to give up some of his assets to businessmen who are close to Yanukovych, or Russian companies. Third, prosecuting a former president, indeed a former ally, demonstrates Yanukovych’s power and serves as a warning shot to anyone who may be tempted to challenge him. Yanukovych, of course, says the investigations are driven by a desire for justice and denies any other motives. But this is not credible, given prosecutors’ willingness to carry out politically motivated prosecutions of former members of the last government of Prime Minister Yulia Tymoshenko and the excessive amounts of pre-trial detentions on dubious criminal charges. Moreover, the low-brow drama that accompanies criminal cases in this nation reveals serious shortcomings in competence and professionalism. This nation’s prosecutors simply can’t solve hard or politically charged cases – or don’t want to solve them. Meanwhile, as the Gongadze case continues to be politicized, we get no closer to the truth about who ordered the slaying of Gongadze, with the 11th anniversary of his terrible murder coming up on Sept. 16. The cover-up and international embarrassment continue. We will keep pushing for justice.
“Our cucumbers are OK to eat. All they have is radiation.”
MADE IN SPAIN
MADE IN UKRAINE
Dreamland The vision of Kyiv in 2025 presented by President Viktor Yanukovych this week certainly sounds impressive. It ticks all the boxes: modernizing creaking infrastructure, improving people’s lifestyles and raising the level of municipal services. But the main sticking point in the plan is not what is mentioned, but what is left out – how on earth will it happen? Given the corruption and mismanagement that have plagued all levels, including Kyiv, it is almost impossible for the plan to be realized at all. Over the last 20 years, successive municipal governments have failed to provide let alone improve basic services, such as roads, garbage collection and hot water supplies. Yanukovych admitted that only one-third of the proposed reforms were implemented last year, despite his virtual monopolization of power in the country. So why should this spectacular plan be any different, especially given that it has no official status? The strategy states no total cost, but many elements of it run into billions of dollars, and it is unclear where this cash will come from, as the central government continues to grapple with its budget deficit. Big plans are great, but the strategy looks more like an unattainable dream. Dreams can provide powerful motivation, but they also need to be injected with a healthy dose of realism. Rather than hearing grandiose plans for completion in 14 years’ time, Kyivans deserve something more tangible. The authorities could perhaps start with one district, providing incentives for local businesses and communities to contribute to its redevelopment, providing a model for other areas. Or how about a fully budgeted plan to improve the city’s roads – not just those used by top-level government officials? That would offer immediate economic and lifestyle benefits to Kyivans. Residents of this beautiful capital city deserve more than empty plans and talk about an unreachable future. They deserve real improvements now, starting with the basics: hot water, clean streets and reliable services from a transparent, effective government.
Published by Public Media LLC Jim Phillipoff, Chief Executive Officer Brian Bonner, Senior Editor Editors: Katya Gorchinskaya, Roman Olearchyk, James Marson, Yuliya Popova Staff Writers: Alexey Bondarev, Tetyana Boychenko, Oksana Faryna, Natalia A. Feduschak, Oksana Grytsenko, Kateryna Grushenko, Nataliya Horban, Vlad Lavrov, Olesia Oleshko, Yura Onyshkiv, Kateryna Panova, Mark Rachkevych, Yuliya Raskevich Nataliya Solovonyuk, Maria Shamota, Irina Sandul, Svitlana Tuchynska, Nataliya Vasyutyn Photographer: Joseph Sywenkyj. Photo Editors: Yaroslav Debelyi, Alex Furman Chief Designer: Vladyslav Zakharenko. Designer: Angela Palchevskaya Marketing: Iuliia Panchuk Web Project: Nikolay Polovinkin, Yuri Voronkov, Maksym Semenchuk Sales department: Irina Gudyma, Maria Kozachenko, Alisa Kyryliuk, Elena Symonenko, Yuriy Timonin, Sergiy Volobayev Subscription Manager: Nataliia Protasova Newsroom Manager: Svitlana Kolesnykova
Office Manager: Anastasia Forina IT: Oleksiy Bondarchuk Color Corrector: Dima Burdiga Transport Manager: Igor Mitko Chief Accountant: Maryna Samoilenko Accountant: Tanya Berezhnaya
To inquire about distribution of the Kyiv Post, please contact Serhiy Kuprin at kuprin@kyivpost.com or by phone at 234-6409
NEWS ITEM: Europe was thrown into panic this week by killer cucumbers. At least 14 people in Germany and one person in Sweden died from E.coli, a bacteria that causes severe food poisoning and intestine infections, and more than 1,200 were infected by June 1 in Germany alone. The cucumbers, which were originally said to have caused the infection, were traced to growers in Spain, a major exporter of fruit and vegetables. Spain rejected allegations, however, and demanded compensation from the European Union to the local famers whose reputation and sales suffered from the scandal.
VOX populi WITH ALEXANDRA DMITRIYEVYCH
Do you think that trial by jury, in which citizens and not judges decide guilt or innocence, will make the criminal justice system fairer? Will it help to prevent politically motivated prosecutions? Volodymyr Dovhalyuk Office employee “I am sure that the trial system in Ukraine won’t change anything, because how can a person without any juridical education make the right decision? People should definitely be properly educated to make that kind of decisions.” Vox Populi is not only in print, but also online at kyivpost.com with different questions. If you have a question that you want answered, e-mail the idea to kyivpost@kyivpost.com.
Okulyna Basmatyuk consultant “In Ukraine, even that kind of system won’t change anything. Ordinary citizens are very easy to influence. I think they will take the money offered, and make the decision you need.” Oleksiy Chybykin artist “Any changes in Ukrainian system are only for the better, but still the people for jury trial should have a higher education. About politically motivated prosecutions, it’s very hard not to be involved in politics today and make independent decisions.”
Iryna Varnyaha student “It could possibly help to prevent corruption, as it really works in Western countries. If ordinary citizens will be involved in the trial system, the decision on guilt or innocence would be more honest.” Oleksiy Lazovoy manager “Nothing will change or influence the Ukrainian trial system. The jury trial will become another budget item for money laundering and judges will still make the decisions convenient for them.”
Feel strongly about an issue? Agree or disagree with editorial positions in this newspaper? The Kyiv Post welcomes letters to the editors and opinion pieces, usually 800 to 1,000 words in length. Please e-mail all correspondence to Brian Bonner, senior editor, at bonner@kyivpost.com or letters@kyivpost.com. All correspondence must include an e-mail address and contact phone number for verification.
www.kyivpost.com
Business 5
June 3, 2011
UK, US urges investors to keep their business in Ukraine clean 1 ing emission quotas under the Kyoto Protocol. Amaee noted that the U.K. Bribery Act doesn’t affect only multinational giants. Local companies, such as Ukrainian ones, must also review their business behavior. “If a Ukrainian company has operations in the U.K., then if any of its associates anywhere in the world, say in Brazil, decides to pay a bribe for the benefit of the company, it can be held to account in the U.K.,” Amaee explained. As Amaee pointed out, a bribe can be in cash, services or benefits provided. Even tickets to a soccer game or donations to an official’s charity, or the hiring of relatives, can be considered a bribe, Amaee said. The changes were discussed at a recent conference in Kyiv, where a group of lawyers specializing in fraud and corruption matters explained the consequences of the new U.K. Bribery Act and the U.S. Foreign Corruption Practices Act. The American Chamber of Commerce in Ukraine and British-
Ukrainian Chamber of Commerce organized the event. One discussion centered on payments made to Ukrainian officials to get them to stop pressuring businesses. In some cases, the payments are made to get officials to actually observe the law. For example, such payments can speed up customs clearance, ensure timely issuance of permits or get other basic public services provided. But Amaee said that only payments specified by law are permitted. John Engstrom, chief of the anti-corruption program at the U.S. Embassy in Kyiv, also warned the audience against hiring lawyers promising to solve problems for a price. “You ask what will they do for this large fee and the answer is ‘you really don’t want to know.’ Once you hear that ‘you really don’t want to know,’ then it’s a red light,” Engstrom said. “You don’t have to do business in a country that demands bribes. I am not here to scare you into compliance, but it’s an area of interest to the Department of
Justice and we have many tools we use to uncover things.” John Rupp, a lawyer with Covington & Burling, reminded the audience that under U.S. law, in particular the Foreign Corrupt Practices Act, a company could be held liable for corruption not only if they have a business presence in the U.S., but also if the bribe they paid was in dollars and was wired through a U.S. bank. In 2010, foreign companies paid over $1.5 billion in fines to settle bribery charges. U.S. authorities often rely on whistleblowers to uncover corruption in exchange for financial rewards. For submitting documents or evidence that reveals corruption, whistleblowers can get on 10-30 percent of the fine that the violator pays, for large-scale infractions involving fines of at least $1 million. Engstrom said American judges are increasingly tougher when it comes to white-collar crimes, making it hard to avoid a jail term in addition to a fine. Due to the high level of corrup-
Top 10 corporate recoveries under the US Foreign Corrupt Practices Act Company
1
Siemens
KBR Halliburton
2
3
BAE Systems
Shamprogetti Eni
4
5
Technip
6
JGC Corporation
7
Daimler
8
Alcatel-Lucent
9
Panalpina
10
Johnson & Johnson
Fine $, millions
1,600
579
400
365
338
219
185
137
82
70
Year
2010
2009
2010
2010
2010
2011
2010
2010
2010
2011
Headquarters
Germany
USA
Summary Between 2001 and 2007, Siemens was found to have paid bribes to foreign government officials to obtain business in Venezuela, China, Israel, Bangladesh, Nigeria, Argentina, Vietnam, Mexico and Russia. Siemens also paid kickbacks to Iraqi ministries in connection with sales of power stations and equipment to Iraq under the United Nations Oil for Food Program. Siemens has offered to pay $1.6 billion in fines, the largest amount ever paid to resolve corruption-related charges. The Securities and Exchange Commission charged that KBR subsidiary Kellogg Brown & Root LLC bribed Nigerian government officials over a 10-year period to obtain construction contracts. The SEC also charged that KBR and Halliburton, KBR's former parent company, engaged in other bribery-related violations. KBR and Halliburton have agreed to pay $579 million to settle. The sanctions are the largest combined settlement paid by U.S. companies since the inception of the Foreign Corrupt Practices Act.
United Kingdom
BAE Systems was sentenced by U.S. Court to pay a $400 million criminal fine, as it pleaded guilty to “conspiring to defraud the United States.” The company made a series of substantial payments to shell companies and third party intermediaries BAE Sytems admitted it regularly retained what it referred to as "marketing advisors" to assist in securing sales of defense items without scrutinizing those relationships. In fact, BAES took steps to conceal from the U.S. government and others its relationships with some of these advisors.
Netherlands, Italy
The SEC charged Italian company ENI, S.p.A. and its former Dutch subsidiary Snamprogetti Netherlands B.V. with multiple violations of the Foreign Corrupt Practices Act (FCPA) in a bribery scheme that included deliveries of cash-filled briefcases and vehicles to Nigerian government officials to win construction contracts. Snamprogetti and ENI have agreed to jointly pay $125 million to settle the SEC's charges, and Snamprogetti will pay an additional $240 million penalty to settle separate criminal proceedings.
France
The SEC alleged that Technip, a global engineering, construction and services company based in Paris, France, was part of a four-company joint venture that bribed Nigerian government officials over a 10-year period in order to win construction contracts in Nigeria worth more than $6 billion. The SEC also charged that Technip engaged in books and records and internal controls violations related to the bribery.
Japan
JGC Corporation has agreed to pay a $218.8 million criminal penalty to resolve DOJ charges related to the Foreign Corrupt Practices Act (FCPA) for its participation in a decade-long scheme to bribe Nigerian government officials to obtain engineering procurement and construction contracts.
Germany
SEC alleged that Daimler engaged in a repeated and systematic practice of paying bribes to foreign government officials to secure business in Russia, China, Vietnam, Nigeria, Hungary, Latvia, Croatia, and Bosnia. It also paid kickbacks to Iraqi ministries in connection with direct and indirect sales of motor vehicles and spare parts under the United Nations Oil for Food Program.
France
SEC charged that Alcatel-Lucent, S.A. (Alcatel) paid bribes to foreign government officials to obtain or retain business in Costa Rica, Honduras, Malaysia, and Taiwan. Alcatel, a provider of telecommunications equipment and services, has offered to pay over $137 million in disgorgement and fines to settle.
Switzerland
Panalpina, a global freight forwarding and logistics services firm, admitted engaging in a scheme to pay bribes to numerous officials in Angola, Azerbaijan, Brazil, Kazakhstan, Nigeria, Russia and Turkmenistan on behalf of many of its customers in the oil and gas industry.
USA
The SEC charged Johnson& Johnson with bribing public doctors in Greece, Poland and Romania to award contracts and prescribe the company’s pharmaceutical products. The SEC also alleged that its subsidiaries also paid kickbacks to Iraq to obtain 19 contracts under the United Nations Oil for Food Program. J&J agreed to pay $70 million to settle these and parallel criminal charges by the U.S. Department of Justice.
Sources: Covington & Burling, Securities and Exchange Commission, US Department of Justice
tion in Ukraine, many corporate sector employees could try to make a quick and easy buck by revealing corrupt practices of their employers. According to the recent European Fraud Survey 2011 by Ernst & Young, 91 percent of Ukraine’s respondents say that bribery and corrupt practices are common. Ukraine and Ireland were the only countries surveyed in
which most respondents concluded that government officials, including law enforcement, show no will to combat the problem. In such conditions, investigations by Western anti-corruption law enforcement officers may be the only way to crack down on corruption in Ukraine. Kyiv Post staff writer Vlad Lavrov can be reached at lavrov@kyivpost.com
What is the perceived extent of bribery in Ukraine? Bribery/corrupt practices happen widely in business in this country
91
6 3
62
Has been as increase in corrupt practices due to economic downturn
55
17
40
28
In our sector, it is common practice to use bribery to win contracts
55
26
% Applies % Don’t know
19
28
% Does not apply % Applies Europe
Would you work for/hire a company involved in major bribery cases?
I would be willing to work for/hire them but would need reassurance about their actions to address the problem
53
65 12
35
17
33
% Willingness to work with % Willingness to hire % Europe
I would be willing 4 to work for/hire them, but would need more 3 money/expect a discount It would make no difference
45
62
I would be unwilling to work for/hire them
7 5 15
23
10
15
How effective is the work of regulators and law enforcement? They appear willing to prosecute cases of bribery/corruption and seem effective in securing convictions They appear willing to prosecute cases of bribery/corruption, but do not seem effective in securing convictions
% Mentioning
9
16
They do not appear willing to prosecute cases of bribery/corruption
Don’t know
51
24
Percentage of unwilling to prosecute Ireland Ukraine Croatia Czech Rep Russia Greece Slovakia Hungary Portugal Romania Baltics Turkey Netherlands
51 51 44 41 37 36 34 34 34 34 31 30 27
Has your organization experienced a significant fraud in the last 2 years? Percentage saying Yes
16 53 31
Source: Ernst & Young
Yes No Don’t know/Refused
Russia Hungary Croatia Baltics Portugal Greece Poland Czech Rep Turkey Ireland Romania Ukraine
37 27 26 21 21 20 19 17 17 16 16 16
6 Business
www.kyivpost.com
June 3, 2011
Dubai’s flydubai enters market for low-cost flights to Middle East, Asia BY S V I T L A N A T U C H YN S KA TUCHYNSKA@KYIVPOST.COM
Flights between Ukraine and the United Arab Emirates or Asia may get cheaper this year as a new low- cost airline from Dubai, flydubai, announces expansion to the Ukrainian market. The company announced late in May that it will in September launch flights between Ukraine’s largest cities – Kyiv, Kharkiv and Donetsk – to Dubai, a popular destination for tourists, business travelers and a major airport hub connecting nations in the West with the Far East. Flights on flydubai, the most recent of a handful of low-cost airlines to enter Ukraine in recent years, can already be booked at flydubai.com. The Dubai airline has big hopes for Ukraine. “When we started flights to Baku, the amount of people travelling between the United Arab Emirates and
Azerbaijan grew 60 percent. I am sure the same will happen here,” said Ghaith al Ghaith, CEO of flydubai. The Dubai airline could broaden its presence in Ukraine adding flights to Odesa and other big cities, he added. “The Emirates have a lot to offer. We have beautiful resorts, shopping. I am sure Ukraine will be interesting for those living in the UAE as well. We will be promoting Ukraine as a weekend destination,” said al Ghaith. The company plans to serve 3,000 people in September. The company is positioning itself as a low-cost carrier. But the prices they are offering for Ukrainian flights are, according to some budget travelers polled by the Kyiv Post, disappointing. A one-way journey from Kyiv to Dubai starts at $194 while the closest competitor of flydubai, another UAE low- cost carrier called Air Arabia, performs flights from Kyiv to Sharjah, a neighboring emirate of Dubai, for $88 one way.
On the move ALEXANDER KUZNETSOV
Ghaith al Ghaith, CEO of flydubai. (Yaroslav Debelyi)
“I was hoping flydubai will be trying to lure clients in by offering lower prices and that budget travelers like myself will benefit,” says Orest Bilous who travels a lot.
Send On the Move news to otm@kyivpost.com or contact Oksana Faryna at 234-6500. Items should include a photograph of the individual who has recently been appointed to a new position, a description of their duties and responsibilities, prior experience as well as education. Note: The Kyiv Post does not charge for publishing these notices or any news material.
OLENA SHVORYAK was
was appointed chief health, safety and environment officer at ArcelorMittal Kryviy Rih, Ukraine’s largest steel mill – itself owned by ArcelorMittal, the world’s largest steel producing company. Prior to this position, Kuznetsov was deputy chief executive officer for occupational safety at Mondi Syktyvkar, one of the biggest producers of pulp and paper in Russia. During his eight years at the company, Kuznetsov significantly reduced the level of work-related injuries and employee sicknesses. Kuznetsov graduated from Leningrad Forest and Technical Kirov Academy. He also completed training at the Mondi Europe Academy in Venice, Austria as well as in Israel.
Air Arabia started flying to Ukraine in 2008, joining a handful of lowcost airlines that followed Hungary’s WizzAir onto the market. The Dubai airline says comfort is
a priority on their flights, adding that each traveler can enjoy a personal television display with a choice of high resolution films. But many Ukrainian travelers hope that added competition on the market will further bring down prices. CEO Ghaith said his company is “very flexible about our prices.” “If we see there is a need for lowering them, we will,” he added. The airline hopes to cooperate with travel companies selling all-inclusive vacation tours to the Emirates. Air Arabia and flydubai also offer a plethora of connecting flight options to Asian countries, including India, Nepal, Sri Lanka and Pakistan. Round trip flights to one popular tourist destination, Sri Lanka, cost about the same on flydubai and Air Arabia: $500-$600. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.com
HENNING DRAGER was
appointed senior brand building manager for tea at Unilever Ukraine, a leading international fast moving consumer goods company. In her new position, Shvoryak will be responsible for the Lipton, Besida and Brooke Bond tea brands in Ukraine. Before joining Unilever in Ukraine, Shvoryak worked as brand manager at Japan Tobacco International (JTI). Prior to that, she headed strategy and insights at JTI and served as senior project manager at GfK, one of the largest market research companies in Ukraine. Shvoryak graduated from Kyiv National Shevchenko University with a master’s degree in economics.
SERGIY MAMEDOV was
appointed chief sustainability officer at BDO LLC Ukraine. In his new role, Drager he will be responsible for building sustainability services across all relevant business sectors and for driving BDO’s corporate social responsibility campaigns. Drager has gained substantial experience in sustainability and CSR fields in the private and non-governmental sectors. In the past, he was an environmental risk analyst at Goldman Sachs and headed corporate campaigns for WWF. He has also worked with Friends of the Earth International and ACCA Global. Drager holds three postgraduate degrees including an MBA in sustainability and natural resources management from the University of Washington, Seattle.
appointed chairman of the board at Ukrgazbank, Ukraine’s 17th-largest bank by volume of assets. The Ministry of Finance became the main shareholder of the bank since its nationalization in 2009. Mamedov will manage the bank that has more than 260 branches and points of sale throughout the country. Mamedov joined the bank as a director of the treasury in 2003. His last position in the bank was deputy chairman. Before joining the bank, he had more than seven years experience in financial management with Aval Bank and Etalon Bank. Mamedov received his master’s degree in business administration from Kyiv National University of Economics in 1997.
INDIAN CUISINE www.sutrakiev.com.ua – Halal on request (063 077-99-99) – Wi fi
PLAN YOUR MOVE TOGETHER WITH US
3 Svyatoshynska str. 03115, Kyiv, Ukraine T./F.: +380 44 502 3929
46/608 Dalnytska str. 65005, Odesa, Ukraine T./F.: +380 48 734 8888
kimet@merlin.net.ua License series AB No 544771 given by the Ministry of Transport of Ukraine on 20.07.10
Kiev • Metro Station "Politekhnicheskaya" 3 Gali Timofeyevoy Str. ("TMM" building) 569-37-66 • 097 077-99-99
www.kyivpost.com
Business 7
June 3, 2011 Advertisement
Business Sense WITH MARK KHAVKIN and CHRISTIAN SCHULLER
#64*/&44"%7*4&3 Editor’s Note: Business Sense is a feature in which experts explain Ukraine’s place in the world economy and provide insight into doing business in the country. To contribute, contact chief editor Brian Bonner at bonner@kyivpost.com
Collecting debts could help unlock lending Enforcing lenders’ rights is a vital part of any well-functioning economy. This is especially true for developing economies, which are dependent on responsible borrowing in order to finance their rapid growth. Therefore, banks’ ability to recover past-due debt, for example, from thousands of small retail clients assures the availability of fair-priced loans to new customers. In Ukraine, by some estimates, the amount of unpaid consumer debt exceeds $10 billion, with $2 billion spent on cell phones, kitchen appliances or expensive vacations. Those $2 billion, if repaid, would be available for new loans allowing hundreds of thousands of ordinary people to improve their lifestyles. It is people like a former landlady, Lyudmila Vladimirovna, who would have been able to take out a loan to buy a dishwasher only if some young gentleman had paid off his loan for an expensive smart-phone, and the banks were able to charge a lower rate for its good customers. Lyudmila Vladimirovna knew exactly how much she collected in rent every month and could do the easy math to figure out the maximum amount of monthly payments she could afford. Unfortunately, a lot of people didn’t want to go through the trouble and the rates remained sky-high for everyone. The dishwasher never came. Long lines to withdraw deposits of people’s hard-earned money were fundamentally part of the same problem. One of my colleague’s friends was left to borrow from everyone she knew because her deposit was stuck in one of the banks that lent money to people who considered loan repayments as optional. Consumers who took out loans are not, of course, the only ones to blame: Lenders often handed out loans irresponsibly in the pre-crisis years and
In buying bad loans, collectors give banks fresh cash to lend out then hiked repayments when problems hit in 2008. In Ukraine, the debt purchasing and collections industry is relatively new. As re-starting retail lending is one of the economic priorities of the government, the National Bank of Ukraine, the State Financial Services Committee and the tax authorities would be well advised to make it easier and more advantageous for banks and collections companies to cooperate. The NBU could encourage banks to clean up their balance sheet rapidly by selling; the SFSC should create a clear legal framework within which retail debt portfolios can be reliably traded and the tax authorities should allow the recognition of distressed debt portfolio as a distinct asset (with internationally recognized depreciation methods) instead of trying to enforce unwieldy banking methodologies (which can lead to impossible tax liabilities). There are many reasons why banks turn to collections companies for help or even sell their receivables at discount. First, the purchasers of defaulted loans can make cash available to banks immediately so the selling banks can issue new loans to deserving clients earlier.
Second, the specialized agencies are more focused than banks at working with defaulting borrowers as they have more resources to dedicate to what is a core business for them – to locate missing debtors – this in turn means there is greater recovery from the debt, which means more to share with the bank. Finally and somewhat more technically, selling debt to a collector allows a bank to optimize the timing of profit recognition and, therefore, allows it to remove “bad loans” from their balance sheets at their convenience. So far there are not many success stories in this market. Ukrfinance is one. The group has recently attracted substantial institutional capital from Horizon Capital, a regional private equity fund, and is using these funds to bulk-purchase non-performing loans from Ukrainian banks and corporations. The banks, from which UkrFinance purchased such loans, are already issuing new loans, recycling those funds to deserving borrowers all over the country. The potential is huge. The volume of such trading in the West is significant. In the U.S., for example, the market is estimated at over $10 billion with the largest companies employing thousands of people. In Western and Central Europe, this market is also extremely well-developed with pan-European companies operating throughout the European Union. In Poland, the market has been growing strongly since early last decade and plays a significant role in the general health of the banking system. Ukraine should be next. Mark Khavkin is an investment director at Horizon Capital, a private equity fund manager investing in Ukraine, Belarus and Moldova. Christian Schuller is chief executive of UkrFinance Group, a debtpurchasing and collections company.
In giving its largest loan yet, European bank to help connect Kyiv with Brussels BY J A ME S M A R S ON
As authorities stepped up efforts in recent years to reconstruct the nation’s major highways, they have also sparked controversy by pumping millions of dollars into improving sparsely used roads (above) that lead to elite neighborhoods outside of Kyiv where the nation’s rich politicians and business tycoons live. (Yaroslav Debelyi)
MARSON@KYIVPOST.COM
Ukraine’s roads are set for a major upgrade after the European Investment Bank announced it will provide a 450 million euro loan to improve the country’s highways to better connect them with Europe’s infrastructure. The bank said its loan is the largest yet provided to a member nation of the European Union’s Eastern Partnership. The project will be co-financed by a further 450 million euro loan from the European Bank for Reconstruction and Development. The money will be spent on improving some 350 kilometers of five sections of highways branching out from Kyiv. The improvements will cover roads connecting Dresden in Germany with Kyiv via Katowice in Poland and Lviv, as well as the Moscow-Kyiv-Odesa route. Ukraine’s potholed and neglected roads have in recent years improved, largely thanks to loans from internation-
al lenders, such as the European Bank for Reconstruction and Development and the World Bank. “The current project … will upgrade Ukraine’s priority transport links with the neighboring EU member states and the adjacent Belarus and Russia. It is
also a good example of collaboration with the EBRD, our partner financial institution, in implementing important projects of mutual interest to Ukraine and the EU,” said Eva Srejber, vice president of the European Investment Bank.
Tendencies in legal regulation of the agricultural sector of Ukraine
T
he rates of production, yields and exports of the agricultural sector of Ukraine show its strong growth potential and the possibility of high returns. It is worth addressing the main and latest tendencies in legal regulation of agriculture in Ukraine that affect its development and attractiveness for investors. Today Sergiy Oberkovych shares the experience of the Gvozdiy & Oberkovych Law Firm amassed in the sphere of agroindustry. Are there any changes in regulating export of agricultural products from Ukraine?
SERGIY OBERKOVYCH Partner
Recently, we have observed a significant shift in the state’s policy in this sphere from customs restrictions to assignment of quotas, which was not the last on the agenda. On May 19, 2011 the Verkhovna Rada, Ukraine’s parliament, adopted Law # 8321 introducing export duties for a number of grains. The law establishes the export duty for wheat in the amount of 9 percent but not less than 17 Euro per ton; for barley, 14 percent but not less than 23 Euro per ton; and for corn, 12 percent but not less than 20 Euro per ton. If the law comes into force (it should happen on the first date of the month, following the month of its publication, if signed by the President), the mentioned products would be withdrawn from free trade with foreign countries. The validity period of export duties is established to January 1, 2012. The Government announced on May 25, 2011 that grain export quotas were cancelled and the corresponding ordinance should be signed soon. Another essential point to keep in mind is that starting from February 1, 2011 the state-owned Agrarian Stock Exchange or other certified stock exchange which the Agricultural Stock Exchange has granted the right to participate in stock trading, have had the exclusive right to register contracts for export of agricultural products (the Ordinance of the Cabinet of Ministers of Ukraine # 1254 of 13.12.2010). Registration of a contract on the stock exchange is a legally binding condition for grain exports from Ukraine. In the context of state regulation tendencies it should also be noted that the Verkhovna Rada has received for consideration a draft law proposing the establishment of a special state agent for agricultural exports that would protect state interests in export operations. This novelty could have a substantial impact on redistribution among the main participants of this market and may lead to a state monopoly. Could you advise on the current issues of financing in the agricultural sector? According to Ukrainian legislation, there are different ways of financing agricultural enterprises: acquisition of shares in capital of companies; provision of loans (either by residents or by non-residents); placement of bonds; initial public offerings (IPOs); leasing; or financing from the state budget. Taking into account the lack of budgetary funds as well as limited financing mechanisms in Ukraine, it is not difficult to assume that companies with foreign investments having access to cheaper resources of international financial markets would have huge advantages over enterprises which get financing in Ukraine. Recently popular methods of agricultural financing have been IPOs as well as granting of loans or conclusion of forward purchase contracts based on the security of future crop yields. However, these methods require expert legal advice to provide for all specifics of the IPO process and particularities of loan agreements and to avoid all possible pitfalls. In which branches of agriculture would you find perspective on the assumption of incentives, provided by legislation? Ukrainian legislation provides a wide range of allowances regarding taxation of activities connected with the production and use of biological types of fuel. For instance, producing biodiesel on the basis of rapeseed could be profitable, but this requires additional subsidies as practiced throughout the world. Due to introduction of “green” tariffs, production of energy from biomass and gas from organic waste have great potential in Ukraine. With the adoption of the Law of Ukraine “On organic production” this sector may also have a fresh start. Generally, the existing taxation system in Ukraine favors development of the agricultural sector, although it requires qualified legal assistance in many cases. What are the main legal obstacles for development of the agricultural sector of Ukraine? Undoubtedly, the main issue is land relations and regulating the land market. In particular, the current moratorium on the sale and change of designation of agricultural land plots as well as limitations of ownership to agricultural land for foreign citizens and legal entities surely do not promote development of agriculture in this country. The agricultural business also expects introduction and implementation of a unified state registry of rights to land plots and limitations (encumbrances).
GVOZDIY & OBERKOVYCH LAW FIRM 19B Instytutska str., Suite 29 01021 Kyiv, Ukraine
Tel. +380 44 581-12-21 Fax. +380 44 581-12-22 E-mail: info@golaw.ua www.golaw.ua
8 Business Focus
www.kyivpost.com
June 3, 2011
Special news coverage ahead on the following topics in Business Focus: July 1 Law firms/Top lawyers
July 22 Ukraine’s Energy Challenges
August 26 Education in Ukraine and adroad
September 9 Top Law firms
September 23 Top 100 companies in Ukraine
American family proves that persistence pays off BY M A R K R AC H K E VYC H RACHKEVYCH@KYIVPOST.COM
DEMKY, CHERKASSY OBLAST – Twenty three births were recorded in this central Ukrainian village in 2007, Atlantic Farms’ second year of operations. It was 22 more births more than in 2005, when the American familyowned business became the hamlet's sole private sector employer. The father-and-son tandem of David and Daniel Sweere keep 300 Demky residents busy farming 6,500 hectares and raising 3,000 head of beef cattle in a village whose aging population numbers less than 1,000. It’s all part of Kyiv-Atlantic, the Sweere family’s majority-owned – and still growing – agribusiness holding in Ukraine. They cultivate an additional 3,000 hectares in southern Kyiv Oblast where they produce vegetable oil, multi-game feed, flour, pasta as well as other valueadded products. They also run a chain of 150 country stores that sell basic farming tools, including feed, seed and fertilizer tailored for small producers. Ukrainian buyers make up roughly 72 percent of the company’s sales. Much like post-Soviet Ukraine’s choppy development, the Sweeres have come a long way from farming Minnesota’s Red River Valley. When Ukraine was on the verge of gaining independence, a then 45-yearold David Sweere (now 66) started operations in Ukraine after selling off his agribusiness in the United States. Although it accounted for only 3 percent of the Soviet Union’s territory, Ukraine was at the time feeding most Soviets and accounted for 25 percent of Soviet agriculture output. But farming technology used in Ukraine was hugely inefficient, exploiting only a
David Sweere. (Andrew Kravchenko)
small amount of the rich “black soil” that carpets the country. David Sweere smelled huge potential in Ukraine, home to some of the world’s richest farming land. As the nation’s economy collapsed and entered a painful transition to a market economy in the early 1990s, David Sweere and his wife Tamara started trading diesel fuel from Russia and the Black Sea and bartered directly with collective farms that didn’t have hard currency to fuel their machinery. In past Kyiv Post interviews, David told of being hassled by the tax police and receiving death threats. But he never gave in. And his tenacity and farming know-how ultimately paid off big time in Ukraine. “My father was lured by the amazing farming opportunity that Ukraine offered,” said 46-year old Daniel Sweere, who joined his father’s Ukrainian farming business in 1994. David’s original and lofty plan for KyivAtlantic was to help transform Ukraine into the only protein self-sufficient nation in Europe. Almost two decades later, Ukraine is just starting to inch towards attaining such agriculture highs. The country still “has the potential of feeding itself by efficiently converting vegetable protein to quality milk, meat and eggs,” proclaimed David. Given Ukraine’s rich soil and ideal farming climate and precipitation, David said Ukraine can become an efficient miracle by using modern seed genetics, carefully targeted plant and soil treatment and create a more robust market for value-added agricultural products like food. The family built up their grain feed plant and elevators in the 1990s surviving the 1998 Russian financial crisis. “That was tough. We just started that business, had foreign debt and it took us five years to recover,” said David Sweere. The process of breaking up Sovietera collective farms was already underway. Currently 84 percent of arable land in Ukraine – roughly 29 million hectares – is privately owned by citizens with the average size of land plots being 3.7 hectares. Much like the nation’s growing number of enormous agribusiness holdings who lease land from villagers, the Sweeres started farming in 2000. By this time agricultural output in Ukraine had dropped almost 50 percent from their peak Soviet figures. An estimated 12-15 percent of arable land is today farmed by large, efficiency farms, BG Capital’s agriculture experts said. In 2002, Kyiv-Atlantic finally made a profit again. It received a cash infusion from Danish investors in 2006 and progressed up to the 2008 global financial meltdown. “We were ahead
Daniel Sweere (above) and his father, David, are among the earliest, most tenacious and most successful foreign investors in Ukraine’s promising agricultural and food sectors. (Andrew Kravchenko)
For Ukraine to unleash its agriculture potential, government must ‘get out of the way and let the private sector take off.’ – David Sweere of the curve during the crisis. It didn’t hurt us that badly,” said David. Employing 1,200 workers, the Sweeres have kept pumping money back into their business. They’ve invested more than $30 million into building a 40,000-ton grain elevator, a feed mill and an oil processing plant. The company's 2010 turnover was $36 million. “It’s better to become better than bigger,” said David, adding that inconsistent government policies and overregulation is holding the nation’s agriculture sector back. Still he said that because of the immense opportunities “you have to
grind it out, really stay tenaciously involved, be vigilant and tough at times. You have to say to the tax inspector: ‘look, I’ll pay my taxes, but I’m not going to pay more.’” His son Daniel said success also depends on an emphasis on efficiency, smart yet intensive use of inputs such as fertilizer and use of modern machinery, a practice that only large farms can apply. David said that another impediment is the cost of financing. Although his company on the average doubles the amount of money it puts into each hectare, borrowing is expensive, often in the double digits since land can’t be used as collateral and banks haven’t
devised specialized loans to match farming cycles. But in order for Ukraine to unleash its agricultural potential, he said, government must “get out of the way… and let the private sector take off.” Ukraine expects the harvest this year to amount to at least 43 million tons of grain. But experts say Ukraine could easily double or even triple that amount if investment is encouraged. For the “when” part to happen government must take almost revolutionary measures to do genuine reform in the agricultural sector. “Unfortunately, that takes political will and, of course…they perpetuate their self-interests rather than national interests which is not uncommon to Ukraine but unfortunate to the people,” said David Sweere, who has been in Ukraine long enough to see it all. Still, the country's potential continues to be staggering for both father and son Sweere. “It’s not a question of ‘if’ but a question of ‘when’,” David said of Ukraine’s chances of regaining its reputation as the “Breadbasket of Europe.” Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com
www.kyivpost.com
Business Focus 9
June 3, 2011
Business Sense
Editor’s Note: Business Sense is a feature in which experts explain Ukraine’s place in the world economy and provide insight into doing business in the country. To contribute, contact senior editor Brian Bonner at bonner@kyivpost.com
WITH ANDRIY YARMAK
Ukraine’s agriculture policy: perfect for hurting farmers Ukraine’s agricultural policy has consistently been a major disappointment. In fact, I am not sure there is an agricultural policy. The five- or 10-year programs announced now and then by successive governments have nothing to do with policy. They usually include a set of wishes that are forgotten as soon as they are articulated. The current Ukrainian government is no different. It sees agriculture as one of its public relations tools. It also frequently adjusts regulations to the interests of their loyal business backers. There is some progress, but it’s slow. Back in the 1990s, we fought against grain transportation bans imposed by regional governments. Now we are fighting against the same thing on a central government level. Back in the 1990s, we successfully fought against a ban on the slaughter of animals by privatized farms. So, things do change, but Ukraine is very far behind. Twenty years after the end of the Soviet Union, many economic and social policies that hail from that era continue to restrict agriculture
sector development. The same old questions – all of which have obvious answers for farmers, grain traders and most level- headed economists – remain unanswered by government officials. How can such a stupid move as last year’s introduction of restrictions on grain exports, with the state aim of keeping the bread prices under control, be possible 20 years after the end of Soviet era? Why would the government try to help wealthy Ukrainian urban consumers save 20 kopecks per loaf at the expense of the poorest part of the country – the rural population that produces the grain? Why would the government want to push away already limited foreign and local investments from the agricultural sector to support bread prices for all, including oligarchs? And what does corn – the export of which was also restricted – have to do with the bread prices? Why would Ukraine, which has a huge budget deficit and whose currency is very hard to keep stable even with the billions of dollars from International Monetary Fund, want to
Regulations are often set to benefit those loyal to government at expense of farmers limit its export revenues? One of the answers to these questions is very simple. Some influential senior government members are developing livestock businesses and they see the cost of grain as one of their major cost items. It also looks nice to common people to see how hard our prime minister is fighting for bread prices. So it is a done deal and kills two birds with one stone. But this is not a policy. Having a policy means having a long-term vision about production efficiency and not about the number of tons collected. It is about seeing Ukrainian milk products sold to 150 countries in the world
George Logush of Kraft talks about how to thrive in competitive food sector BY V L A D L AV R OV LAVROV@KYIVPOST.COM
While doing business in Ukraine can be full of hardship, some sectors are easier than others. With Ukrainian titans having a lock on heavy industries, telecoms and energy, other business people find comfort in the more competitive food sector. The reasons are simple: the nation’s richest and most powerful have thus far largely ignored food production in favor of powerful oligopolies that rake in much of the nation’s industrial wealth. So the virtually oligarch-free food industry is one of the few bright spots of Ukraine’s economy. It has lower entrance barriers, wholesome competition and hefty margins. It is also resistant to crisis. After all, no matter what the economic outlook is, people eat. All of this sounds like great news to George Logush, an American of Ukrainian roots who serves as vice president of Kraft Foods, the global food giant with a strong presence in Ukraine. This year, Kraft announced plans to spend $90 million on increasing its capacity in Ukraine. Plans include adding a biscuit factory and a new logistics center to its existing operations in Sumy Oblast. The Kyiv Post talked to Logush about his views on the food sector.
George Logush (Alissa Ambrose)
Kyiv Post: Many experts we’ve talked to claim that the food industry is the place to be in Ukraine. Is that so? George Logush: As I think of it now, this is the industry that has probably the lowest entry barriers, and the least need for capital. Also, the food industry is less cyclical. It has its own cycles. But the industry is quite stable, because people have to eat, and the world is growing hungrier, not only physiologically, but also because people want to eat beyond subsistence, better quality food, as incomes are rising. So, not only is domestic market attractive, but also the export market is very attractive. There are estimates
that through its exports Ukraine could feed more than one billion people. Not feed them completely, but in terms of their import supplement. So, it’s a very, very exciting industry. It has its own problems, of course, as it is subject to a lot of regulation, excessive by world standards, controls, bureaucratic red tape and abuses that are also excessive. But all in all, Ukraine is a great place to invest, and it’s probably the best kept secret. Investors who come to Ukraine and are successful tend to stay quiet. The ones who have trouble trumpet about it from every tribune. That’s what makes the noise and creates an impression about doing busi- 13
and not reporting on the number of cows in the country, and so on. Ukraine’s agricultural policy should focus on innovations, new product ideas, adding value, being environment-friendly and export-oriented, striving to feed the world, as Ukraine well could. We need to get leading international companies in all sectors to establish research and development centers in the country by creating attractive conditions. We need to create conditions for equipment and machinery manufacturers to start production here. We need to get agricultural education up to global standards, invite the best minds here and build
the knowledge base in the country. We need to export not only products but technologies and experience to produce or process these products. This is much more profitable. We need to make it a law that the government will let the market decide prices and will not interfere. We also have so much energy wasted in agriculture; efficiency could decrease our dependence on energy imports. We need to develop an agricultural policy and all the activities of Agriculture Ministry should be based on it. Until we accomplish all of this, we will continue in our frustration when trying to explain the actions of our current government, whose agricultural policy seems to be based on killing growers of grain and supporting imports. Andriy Yarmak is an independent agribusiness expert. He has worked on agriculture development issues in 10 countries, serving as an adviser and independent board members for agribusinesses in Ukraine and has developed market information systems for APK-Inform, a Ukrainian agriculture consultancy.
10 Business Focus
www.kyivpost.com
June 3, 2011
Nation could profit big amid surging global food demand Billions of dollars in fresh investment could help Ukraine boost crop, export earnings
BY M A R K R AC H K E VYC H RACHKEVYCH@KYIVPOST.COM
As the world population surges along with demand for food, Ukraine is positioned to not only feed more hungry mouths, but also to profit from it greatly. The global spotlight, including investor interest, is aimed at agriculturally under-developed countries like Ukraine for increased production. On the one hand, Ukraine is home to some of the world’s richest and most under-cultivated land. But on the other, farming technologies are outdated. As a result, Ukraine’s farming countryside lags behind in yields – 30 to 60 percent below European Union averages for all crops. Many say that if the nation adopts the right policies – opening up the market to competition and billions of dollars in fresh investment – harvests could surge, and Ukraine could double its hard currency earnings from grain exports to $8 billion in five years while developing value-added food production industries, investment bank BG Capital said. If Ukraine achieves such a goal in the next decade or so, then the nation could become a geopolitical food superpower.
By the end of this year, the world’s population will reach 7 billion people as water supplies are imperiled, glaciers are melting, fish stocks are vanishing and soil is eroding. “Ukraine is and will continue to be a major beneficiary over the next few years from this trend,� said Anton Khmelnitski, director of Kyiv-based Elbrus Capital, which invests into Ukrainian agriculture companies.
Grain Production and Yields in Ukraine* 60
5.0
(million tons)
50
4.0
40
3.0
30
53 38
34
46
39
29
2010
2009
2008
2007
2006
2005
2004
2002
2.0 1.0
20
2001
0
42
39
24
2000
10
40
2003
20
0.0
Grain production (left hand scale) Average yield (tons/hactares; right hand scale) Note: *in clean weight terms (after cleaning and drying). Source: SSC
Advertisement
Recent Trends in Agricultural and FMCG Sectors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
XXX BWFMMVN DPN
"WFMMVN 1BSUOFST JT UIF MBX GJSN TQFDJBMJ[JOH JO TPQIJTUJDBUFE DPSQPSBUF GJOBODF BEWJDF
Index of world market export prices for food commodities (2010 = 1.00) 2.00
2010 2020 2030
1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
Paddy Rice
Wheat
Maize
Other Crops
Livestock
Meat
Rice
Other Processed Food
Source: Oxfam Research Reports
A growing number of investors have snapped up shares in a handful of promising Ukrainian agribusinesses that have started listing their stocks on international exchanges. “Moreover , the equity story is the most attractive to capture the growth aspects of agri-businesses today as well as land reform which is expected to be activated on July 1, 2012,� Khmelnitski added. The potential buried in Ukraine’s rich black soil has been long recognized by multinational agribusinesses which have invested billions into farming, food production and grain trading since the 1990s. But before it starts feeding the world, experts say Ukraine must boost production and end protectionist barriers that drive up the cost of food for its own population. Increasing global food prices might hasten development of
the agricultural sector. SigmaBleyzer, the equity investment group, said yearend inflation is forecast at 12 percent on the back of rising fuel and food costs. Greater production of food will require increased use of fertilizer and modern farming machinery, experts said, at a cost of billions of dollars in needed investment. Although 15 agricultural and food processing companies are publicly listed, experts say the government still needs to do more to promote investment – or simply get out of the way. How rich is Ukraine in potential? It possesses 32.5 million hectares of highly fertile arable land, about onethird of the 27-nation European Union’s stock. Besides room for production growth, the nation is close to attractive export markets with numerous Black Sea ports and railway connections.
Ukraine could even be well-positioned to export more than 100 million tons of grain annually, said John Shmorhun of Sigma Bleyzer, a huge jump from current levels. As food demand rises, the value of farmland in Ukraine should also increase if government develops a transparent market for the purchase and sale of agricultural land. The moratorium on such land sales is dampening investment among farmers who could be using the earth as collateral for loans. According to Kyiv investment bank Dragon Capital, land leasers annually pay on average $40-$50 per hectare, well below the $200 to $800 per hectare in the European Union. If the current moratorium on the sale of agricultural land is lifted, farmland owners could receive $1,700-2,000 per hectare, said Dragon Capital said. 11
www.kyivpost.com
Business Focus 11
June 3, 2011
A farmer plants wheat seeds in a freshly tilled field in Stinka village of Ternopil Oblast in 2010. (Mark Rachkevych)
Rental Payments for Agricultural Land in Ukraine and the EU 1,000
(2009; $/hectare)
800 600 400 200
Denmark
Greece
Netherlands
Austria
Luxembourg
Spain
France
Sweden
Bulgaria
Hungary
Malta
Ukraine
Poland
Slovakia
Lithuania
0
Sources: Eurostat, Dragon Capital estimates
Ukraine Grain Output, Export and Consumption 60
40
(million tons)
50
Lifting moratorium on farmland sales seen as key to sector reaching its potential If ban ends on buying and selling of land, will foreigners be excluded from taking part? Publicly traded Ukrainian agriholdings Company
Products
Astarta
Sugar
MHP MCB Agricole
Stock exchange
Share price as of noon, June 2
Warsaw
$30.86
Grain, chicken
London
$18.20
Crops
Frankfurt
$2.95
Sintal
Grain, sugar
Frankfurt
$3.60
Mriya
Seed and crops
Frankfurt
$10.19
Source: Company data
Average production costs in 2009 100 90
$/ton* -12%
95
80
90
-27%
82
70 60
65
50 40 30 20 10 0
Wheat
Ukraine’09
Corn
Listed agriholdings
*Listed agriholdings refers to the mean cost per ton for Astarta, MHP, MCB Agricole, Sintal and Mriya. As an outlier in terms of cost, Landkom is excluded. Source: Company data, UkrState, BG Capital Research
10 “The issue of selling farmland has ripened, in fact, it ripened a long time ago,” said Volodymyr Lapa, director general of the Ukrainian Agribusiness Club. “The significant investment, which is coming to agribusiness now, is incomparable with the sums of money that could come if farmland issues were rationally solved.” President Viktor Yanukovych’s administration claims it is acting fast to create a transparent agriculture land market. But many experts and opposition lawmakers fear that restrictive conditions could keep foreign investors out, allowing domestic oligarchs to monopolize yet another sector of Ukraine’s economy. For now, however, Ukraine’s small and struggling farmers are unable to take advantage of rising food prices. Small farmers have limited access to water and fertilizers. For their produce, many also have a single buyer who dictates the price. Farmers are extremely vulnerable to changes in the weather and many are not able to store their harvests for long. Poor roads and other weak infrastructure also block them from markets. Better days may be coming – eventually. According to the U.S. Department of Agriculture, Ukraine will become a major agricultural player by 2020 – if the right policies are adopted. “If the heads of states and governments will not undertake the necessary measures, the cost of grain crops in the next 20 years will increase by 120-180 percent,” Oxfam, the anti-poverty organization, reported. And, if Ukraine doesn’t improve its harvests, it could find itself a net importer of food – a cruel reversal of fortunes for the “breadbasket of Europe.” Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com. Staff writer Oksana Grytsenko contributed to this story.
30
25.1 16.5
21.4
18.7
20 10
30
27.4
40
19.8
16.1 16.5
17.9
4.3
0
'02/03
22.4 20.6
13.8
14.5 13.7
25.9
10 20.9
16.8
'03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '10/11E
left hand scale Ukraine coarse grain output Ukraine wheat production
20
right hand scale Ukraine grain consumption Ukraine grain exports
Sources: SSC, UkrAgroConsult, Dragon Capital estimates
0
12 Business Focus
www.kyivpost.com
June 3, 2011
Business Sense
Editor’s Note: Business Sense is a feature in which experts explain Ukraine’s place in the world economy and provide insight into doing business in the country. To contribute, contact senior editor Brian Bonner at bonner@kyivpost.com
WITH LEO KRASNOZHON
Robbing the ‘Breadbasket’ Ukraine, one of the top grain exporters in the world and nicknamed the “Breadbasket of Europe,� is being robbed by its government. It has become hostage to its mercantilist government. In October, the Ukrainian government, presided by a former apparatchik, Prime Minister Mykola Azarov, enacted a resolution requiring quotas and licenses for exporting grain. The objective was to stabilize food prices and prevent a food shortage caused by last year’s poor harvest. While the protectionist policy came under harsh criticism from both foreign and domestic observers, the government kept the export grain quotas for eight months. On May 25, the Ukrainian government finally announced that it would replace the grain export quotas with export duties of 9-14 percent. The Ukrainian delegation in the World Trade Organization has not submitted the official documents about the replacement of export quotas with export duties yet. While the WTO is waiting for the papers, the Ukrainian government must answer several important questions. Why did the state use non-transparent practices of allocating export quotas and licenses, wherein an unknown company Khlib Investbud received a lion’s share and gained the market power in the grain export industry? The grain industry generates 15 percent of Ukraine’s exports – $7.5 billion. How did the controversial regulation kill the spirit of competition in the domestic grain market and push it towards monopolization? What does the change in the current trade policy mean for the export-oriented Ukrainian agriculture and world food prices? Who gains and who loses from the protectionist policy? Quota and license are usually imposed to limit the quantity of a product and raise its price. The grain export license is given to a company
by the state to buy the grains from domestic farmers at the domestic price and resell these grains at the world price to foreign buyers. Since the world price is higher than the domestic price, whoever receives the export license is guaranteed a profit of a middleman. Moreover, the export grain quota limits the quantity of export that results in a price markup. For all grains exported with the quota, the markup could total to billions of dollars. Thus, a licensed company that has an export quota receives a profit that is not earned through market competition. The government regulation creates the profit for the middleman which causes market inefficiency and market monopolization and wastes society’s resources. Replacing export quota with export duties is an old trick. The export duty that is a sales tax on export has the same effect as export quota. The export duties discourage grain exports, reduce quantity of grain exports, and raise grain prices. Foreign observers have criticized Ukraine’s trade policy on the grounds of its inefficiency. Morgan Williams, the president of the U.S.-Ukraine Business Council, estimated that losses in the domestic food industry could reach billions of dollars as a consequence of the protectionist policy. According to Martin Raiser, the World Bank’s country director for Ukraine, Belarus and Moldova, the present grain export quota system is inefficient and restricts the inflow of investment. Even with these sharp criticisms from foreign observers, the Ukrainian delegation in the WTO defended the export quota system as essential to food security because of a poor harvest. Since the government announced the replacement of export quotas with export duties, the Ukrainian delegation in the WTO has to come up with a new sales pitch for the continuing protectionist policy. Grains that fall under the
OfďŹ cials must end policy that beneďŹ ts one insider ďŹ rm at a major cost to whole nation regulation are crops produced by most domestic farmers: wheat, buckwheat, corn, barley and rye. In fact, the Ukrainian government has already lied to the WTO and the rest of the world to defend the protectionist policy. A “poor harvest in 2010â€? was a big fat lie. According to Ukraine’s State Statistics Committee, the “poor harvest of 2010â€? was above average if you looked at the record of Ukraine’s grain production in the last two decades. On average, Ukraine’s agricultural sector produced 36.1 million tons of grain between 1990 and 2010. Ukraine’s agriculture hit the bottom in 2003 with a harvest of 20.2 million tons of grain while it reached the peak in 2008 with 53.2 million tons of grain. Thus, the “poor harvest of 2010â€? that was 39.2 million tons exceeded its average by 3 million tons. And we do not even taken into account 6 million tons of grain rolled over from the harvest of 2009. The current protectionist policy is an absolute failure because it hurts Ukraine’s economy. The protectionist
policy brought back nepotism. It also sent a clear signal to foreign companies that Ukraine’s economy went back in the domain of the oligarchs. The distribution of quotas was not transparent. Grain traders had only seven days to apply for the export quota after the government resolution was enacted. As a result, most of the companies were unable to receive the grain availability certificate while an unknown company, Khlib Investbud, received the largest share. Moreover, the export quota system that was designed to stabilize food prices failed to keep food prices from rising. Domestic food prices have increased by 20 percent since the quota system was introduced. Ukraine’s State Statistics Committee reports that prices of bread, sunflower and corn oil have increased by 12 percent since January. The grain prices rose by 15 percent in the first quarter of 2011. The domestic consumers are outraged with surging food prices. The current economic situation is actually very drastic. In Ukraine an average pensioner receives around $100 per month. Given rising food prices, a large number of elderly Ukrainians find themselves below the poverty threshold. Furthermore, the protectionist policy hurt domestic farmers. The cashstrapped farmers were forced to sell their grain at lower than expected prices because the Khlib Investbud company used its market power to dictate the prices in the domestic grain. The Ukrainian government does not care that the protectionist policy hurts both sides of the international trade, exports and imports. Lower profit margins do not allow the cash-strapped farmers to purchase essential machinery and fertilizer that are mostly imported from Russia, Belarus and the United States. Khlib Investbud seems to be the only winner. However, any criticism of the trade policy or questioning the role of
the Khlib Investbud is suppressed by the state. Meanwhile, Ukraine’s government has made several trade policy concessions recently. In March 2011 the government dropped corn from the original list and increased the total size of the quotas by 1.5 million tons to 4.2 million tons, or 10 percent of last year’s harvest. On May 25, the government declared that the grain export quotas would be replaced with export duties of 9-14 percent. The seemingly confusing policy has perfect timing. Since October 2010 Khlib Investbud backed up by Grain Ukraine has used its market power to accumulate around 2 million tons of grain. Moreover, Khlib Investbud had exported 800,000 tons of grain before the government replaced the export quotas with the export duties. As a result, the government gave Khlib Investbud a huge advantage over other grain exporters that must play by the new rules. Backed by the state, Khlib Investbud robbed the breadbasket! The current trade policy signals domestic grain producers and foreign grain traders that President Viktor Yanukovych’s administration sticks to protectionism. It also shows that the government can change policy without any legitimate economic reason at all. The current protectionist policy can destroy the agricultural sector of Ukraine. If this policy continues, we will see capital leaving the agricultural sector for other industries. If this outrageous grain robbery is not stopped, the European breadbasket will be completely emptied out for the benefit of a single company. If Ukraine is still a democratic state, the government must explain why the benefit of a single company comes at the cost of the whole nation! Leo Krasnozhon is a visiting assistant professor and graduate advisor with the Department of Economics at the University of Texas in Arlington.
,IST OF PARTICIPANTS AS OF *UNE
%MPLOYMENT &AIR
o +0-' o #ARGILL o -RIYA !GRO (OLDING o #ONCORDE #APITAL o !MERICAN #HAMBER OF #OMMERCE o $IAMOND 2ECRUITERS
o 2OBOTA 0LUS o -ARS 5KRAINE o 5KR3IBBANK o "AKER 4ILLY 5KRAINE o "4, 5KRAINE o -YRONIVSKY (LIBOPRODUCT
o #AREER'UIDE o "ANK OF #YPRUS o "# 4OMS o 2ABOTA UA o 3!6 3ERVICE o .OVA 2OBOTA o "USINESS ,INK
o 0RO#REDIT "ANK o %"3 o 0RAVEX "ANK o "RAIN 3OURCE 5KRAINE o #OCA #OLA o !RICOL o "ALTIYA $RUK
7E OFFER WORK NOT TALK *UNE
4HE 5KRAINIAN #HAMBER OF #OMMERCE AND )NDUSTRY 6ELYKA :HYTOMYRSKA 3TREET Open 10 a.m. – 5 p.m.
7ORKSHOPS ,ANGUAGE 2USSIAN p 2ABOTA UA "UILDING A CAREER IN A PRESENT DAY 5KRAINE 4ENDENCIES AND PERSPECTIVES OF 5KRAINIAN EMPLOYMENT MARKET 0ARTNER
%XCLUSIVE "USINESS !SSOCIATION 0ARTNER
p #ONCORDE #APITAL #ONCORDE #APITAL p YOUR DESTINATION FOR DEVELOPMENT AND ACHIEVEMENT
'ENERAL )NTERNET 0ARTNER
/FFICIAL (2 PARTNER
p "RAIN 3OURCE )NTERNATIONAL 4YPES OF INTERVIEW 2ECOMMENDATIONS FOR SUCCESSFUL INTERVIEW
p -YRONIVSKY (LIBOPRODUCT 'ROW WITH -(0
ADVERTISING KYIVPOST COM KYIVPOST COM PROJECTS EMPLOYMENT
www.kyivpost.com
Business Focus/News 13
June 3, 2011
Kraft’s Logush Poroshenko: Corruption says foreigners has become ‘inevitable’ need to adapt to local realities 9 ness in Ukraine, which keeps away investors. But those of us who are successful and don’t want much competition tend to be quiet. KP: You’ve just mentioned the excessive abuses… GL: If you run a clean business, it tends to minimize the problems. KP: That’s not what we have heard from Rinat Starkov, the head of ArcelorMittal Kryvyj Rih, whose company is subject to several inspections per day, is owed billions of value-added tax refunds and is forced to pay taxes in advance. GL: That’s not the food industry. KP: So, why is the reason the food industry almost a safe haven? Is that because the domestic oligarchs are not heavily involved? GL: It’s a relatively neglected area. [Owners of] large financial-industrial groups rose in the heavy industry. For them, agriculture is a complete antithesis. They don’t understand it at all. It’s impossible for them to think of vertical integration. They don’t understand farming well. It’s not very manageable. And if you want to be in the whole value chain, the best part is at the end of it, when you get into fast-moving consumer goods. FMCG is a frightening industry for industrialists. Instead of having 10 customers, you have tens of millions of them. You have no way to enter into direct negotiations with them. You have to find indirect ways of influencing them, so that they buy your product. You have to go into advertising, which is a very creative process, based in psychology. So, they tend to keep away from it. The few experiments that took place, for example, one group that owned Sarmat [a Donetsk-based brewery currently owned by Carlsberg Group but formerly owned by Ukraine’s richest man, Rinat Akhmetov] ended in disaster. Another industrial group that has a food company is now looking to sell. KP: Are you talking about Biola, a Dnipropetrovsk-based food and beverage producer, reportedly linked to billionaires Ihor Kolomoysky and Gennadiy Bogolyubov? GL: Veres [a Kyiv-based canned food producer, co-owned by Russian businessman Vadim Novinski’s Smart Group]. It’s too complex, compared to industry. Of course, when I look into industry I find complexities there. It’s like the opposite side of a coin. I wouldn’t want to have just a few customers, I’d rather have tens of millions of them. When you have few customers, you can get into difficulties with them, and you have oligopoly, oligopsony and so on. KP: Isn’t it close to what happened in grain trading this year when the export quotas were introduced and a single company, Khlib Investbud, received the largest share? GL: If you are in this business of buying and exporting grain, the com-
plexity of harvest uncertainty is then compounded by the uncertainty of how government will react to the potential food shortage or high food prices. So, it’s an indemnifying part of the business. Everywhere in the world, grain companies run into government intervention. KP: But still comparing agriculture with the food industry makes the latter seem to be much more attractive and trouble-free, so to speak. GL: Let me give you an example. A company, which is the worldwide supplier of french fries to an international fast food chain, came to Ukraine. I met with their business development representative to give some advice and two months afterwards he came back to me and said: “I found an ideal partner.” One look at that partner and you knew that there was a problem. I asked: What is the particular advantage of him? And he said: “He could solve any problem. He has great contacts, great ways and promised things will be smooth and I wouldn’t have any problems.” I suggested that he’d better look for another partner. He didn’t and stuck with that partner, who ended up cheating him. Then [the foreign investor] sued him, claiming that he stole all the agricultural equipment from him and locked it into a warehouse. And even though he won in court, he couldn’t get the court to get it back. So, this international company never got on the ground in Ukraine. Then, there is the problem of theft. We load a truck with five tons [of potatoes]. It arrives with 4 tons, 920 kilograms, and the driver claims they must have dried out along the way. We followed the truck and saw that it made an unauthorized stop and unloaded some of the potatoes. We had to install convoys to follow every truck. On another occasion, we saw a bunch of people unloading potatoes piled up in the field into a sack. The whole family was doing this. We called the police and they ended forcing us to lie on the ground. It turned out that the guy who was stealing was a policeman. But you can solve all these problems. If you make a big issue out of it, claiming that the corrupt police has raided us, go ahead. The simpler way is to sit and talk to people and say: guys you can’t steal potatoes. What’s going on? I think many investors, when they come to Ukraine, think they know better, as they are coming from a different world and their job is to teach. And nobody takes that condescension of people talking down to you. Foreign investors should put themselves in the place of these people. They do things differently than you do. Come to an agreement with them on how you do things. Work together, learn together. If you have that open attitude it removes a lot of problems. Compared to grain traders, our problems are more complex, because we are at the end of the value chain. But we are less subject to intervention and a force majeure. Import quotas suddenly imposed is like a tsunami, whereas we have to deal with rain and tides, but not a tsunami. Kyiv Post staff writer Vlad Lavrov can be reached at lavrov@kyivpost.com
KP: You recently bought 1 Korrespondent magazine, Bigmir.net internet portal and Korrespondent.net news website. Why? Are you looking for mouthpieces for your political carrier? PP: I have a partner, Boris Lozhkin, a media manager. It is comfortable to work with him. These acquisitions were made after detailed analysis. Unfortunately, these are not the best times for media in Ukraine. Profitability is declining due to many factors, including political ones. Investors are leaving Ukraine. When I learned that negotiations were under way with respect to selling and buying Korrespondent, I met with [former KP Media owner, American] Jed [Sunden]. In my view, the value of KP Media is in the high professionalism of its team. Why is Korrespondent the leader? Because it blows up unchecked sensations? No. The key [to its success] is a high level of trust with its readers and Internet users. My priority is to preserve this. A key condition for investment into Korrespondent was preserving such editorial policy. Thus, we signed a contract with Jed, according to which he is personally responsible for providing this editorial policy, along with editors. KP: Nevertheless, media does not bring profits as big as other businesses. PP: If it is well-structured, it brings profits … transparent profits, from advertising and sales.
PP: It’s a long time until the presidential elections [scheduled for 2015.] So far, I don’t see any possibilities or necessity to do anything. There are enough candidates for presidency without me that today are trying to offer something to people. KP: Do you fully exclude running for president? PP: I am 45 years old. People have become president in Ukraine after reaching 60 or so. I can reassure you that in 2015, I exclude any possibility of taking part in the elections.
Petro Poroshenko. (Andrei Kravchenko)
KP: Do your other businesses suffer because you own mass media? Do you receive some calls from someone? PP: I can get calls and I do get them. KP: Does it affect you? PP: Me? Theoretically it can. So far it hasn’t, but theoretically, it can. It can’t affect Korrespondent. Because, you know, my mission is to serve as that shield, that lightning rod, if you wish, when calls get to me but go no further. My position is very simple: if someone wants to discuss the content, one can easily contact Jed and do it with him, because these functions are his, according to the contract. As far as I know nobody has called him so far. KP: dent?
Will you run for presi-
KP: What will be your next political move? PP: I don’t know. It will largely depend on the political situation. I am a versatile and self-sufficient person that that can afford not being in politics while remaining a public figure and expressing my opinion no matter what political winds are blowing. KP: But as a businessman and politician, don’t you feel an increase in corruption and tax pressure? PP: Yes. I feel it everywhere. It has become much more difficult to conduct business in Ukraine. I would put this way: corruption has become the order of the day. This means it has become inevitable. Today we have clear tariffs and clear prices. Only breathing is free of charge today. Drinking water without paying taxes is no longer possible. Pretty soon breathing will also become an issue. Kyiv Post staff writer Irina Sandul can be reached at sandul@kyivpost.com
Authorities announce grand plans for Kyiv, but can’t get basics right BY SV ITL A NA TUCH Y NSKA TUCHYNSKA@KYIVPOST.COM
A modern city of green zones and waterfront amusement parks, with rapid transport links serving residents who are twice as rich as today. This is the vision of Kyiv in 2025 presented in a new strategy for the city’s development by President Viktor Yanukovych on May 26. At a gathering of politicians and media at city hall, Yanukovych touted the Kyiv 2025 plan as an example for cities across the nation. Critics said it is simply a PR exercise with no status and no strategy to accomplish its goals in a city dogged by mismanagement and corruption. Far from governing a shining city on a hill, municipal authorities are unable to provide hot water reliably, clean up garbage consistently or even control the population of stray dogs – much less keep roads repaired in summer or cleared in winter. The 72-page document was prepared by Foundation for Effective Governance, owned by Ukrainian billionaire Rinat Akhmetov, and the Boston Consulting Group. The foundation wouldn’t disclose the cost. More than 1,000 Kyivans and a groups of experts were consulted. According to the strategy, Kyiv has to choose its priorities. In the same way that banks drive Zurich’s economy, Kyiv can develop medical tourism, become a center for domestic and foreign information technology outsourcing or focus on becoming a cultural center for tourism. Lives of city dwellers should be made easier if authorities digitalize city management and enable Kyivans
to communicate with officials via email, as well as pay fines and order documents online. Instead of clustering shopping malls and office buildings in the center, authorities should encourage creation of jobs and options for recreation and shopping in remote parts of the city, including the left bank of Kyiv, the document urges. According to the strategy, this will take pressure off city infrastructure and heavily used public transport. “Priorities are green zones, city transport, taking enterprises with high pollution out of the city,” Yanukovych said. “There is a lot to be done in Kyiv. And it is important to set an example for the rest of the country.” Cultural events need support and places such as the Dovzhenko film studio should be modernized. The Dnipro River wharf, occupied by a mix of floating restaurants and industrial areas, should be developed and filled with pedestrian zones, amusement parks, hotels and sports grounds, according to the blueprint. Critics pounced. “This is hardly a strategy but a set of slogans. I have seen no concrete tactics on how those goals are to be implemented. People live today, not tomorrow. But to promise something for tomorrow is easier than to do something today,” said Leonid Kosakivsky, who served as Kyiv mayor from 1994 to 1998. Many residents might prefer just to get hot water in their apartments. Summer is the time when all Kyivans spend at least three weeks without hot running water while Kyivenergo, the municipal monopolist for generating, transmitting and distributing heat and
electrical power, tests and repairs its pipes and systems. That explanation doesn’t hold water with everyone. Many residents have no hot water and heat periodically throughout the year, as Kyivenergo has complained that it needs money to replace aging pipes. But City Administrator Oleksandr Popov said authorities are not distracted from everyday issues in pursuit of a grandiose future. “The strategy enables us to plan the long-term future of the city. Without this vision, all the current problem-solving is short-term and not sustainable,” Popov said. Appointed by Yanukovych as head of the city administration last year, Popov pushed aside the erratic Mayor Leonid Chernovetsky, who has a barely visible ceremonial role. Popov may have to stand for election as mayor as early as 2012. If this blueprint is a manifesto guiding Popov, it’s unclear how it will happen. Modernization of the water supply network will cost more than $1 billion, development of transport another 41.5 billion and building of tourist infrastructure at least $15 million. There is no indication, however, of total cost or where the money will come from. Despite the bombast of the presentation, the document has no legal status. In that sense, it may go the way of other plans. “There is a general city plan until 2020, which is an official document, but even this plan is not being followed,” said Oleksandr Serhiyenko from the City Institute think tank. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.com
14 News
www.kyivpost.com
June 3, 2011
A tale of one village, two Ivan Demjanjuks 1 Makharyntsi are seen as possible clues to one of the longest-running sagas about Nazi-era war crimes during World War II. John Demjanjuk, now 91 and living in a German nursing home, claims authorities got the wrong person and that he is being persecuted. He is appealing the Munich court’s ruling that he had been a guard at the Sobibor death camp in eastern Poland during World War II, and therefore must bear responsibility for the murders of Jews there. If he’s correct, does it mean the Ivan Demjanjuk who killed himself may be responsible for the crimes that John was found guilty of committing? Is the whole John Demjanjuk affair a case of mistaken identity? In Dubovi Makharyntsi, a farming village of 600 people in Vinnytsia Oblast, some locals question the verdict against John Demjanjuk, born here in 1920, just before the dawn of the Soviet Union. Some regard the court proceedings in Munich as Germany’s
The grave of Ivan Andriyevych Demjanjuk.
attempt to shift historical guilt for Nazi World War II crimes to another nation. Worse, they say, the evidence against him was flimsy – relying heavily on a wartime ID card that could have been forged by the Soviets. Moreover, authorities seem to have largely ignored one potentially key person – the other Ivan Demjanjuk, villagers say. In 1971– two decades after John Demjanuk settled in America – villagers say the KGB came to town looking for Ivan Demjanjuk. The agents promptly summoned Petro Bondaruk, a World War II veteran who had fought alongside a man by that name, to the security’s regional headquarters for a talk in nearby Vinnytsia. Putting three photos on the table, KGB officers asked Bondaruk to identify the man he had soldiered with in the Soviet Red Army in the early part of the war. “None of them,” Bondaruk responded. Upon returning to Dubovi Makharyntsi, Bondaruk went to the home of a villager named Ivan Demjanjuk and told him: “The KGB is interested in you.” Less than two weeks later, this Ivan Demjanjuk hanged himself from the rafter of his barn. Villagers here say in his act of desperation, Ivan Andriyevych Demjanjuk possibly took to the grave a secret that could have helped acquit Bondaruk’s wartime friend, Ivan Mykolaiovych Demjanjuk, the man now known as John. The May 1 conviction of John Demjanjuk – a retired autoworker who settled near Cleveland, Ohio, after arriving in America in 1952 – hasn’t settled anything about the mystery that has endured for three decades. Accused of being the notorious guard Ivan the Terrible at another
Key dates in the case of John Demjanjuk 1920: Born in Ukraine. 1942: Captured by German forces while serving in the Soviet Red Army. 1952: Demjanjuk emigrates to the U.S., claims to have spent much of World War II in a German prisoner of war camp. 1958: Gains U.S. citizenship. 1977: Justice Department seeks to revoke citizenship, alleging Demjanjuk hid past as Nazi death camp guard “Ivan the Terrible.” 1981: Citizenship revoked. 1986: Extradited to Israel for trial over his alleged role at Treblinka death camp. 1988: Convicted of war crimes and crimes against humanity, sentenced to death. 1993: Israel’s Supreme Court unanimously rules Demjanjuk was not “Ivan the Terrible,” overturning 1988 verdict and returning him to U.S. 1998: Regains U.S. citizenship. 1999: U.S. Justice Department again seeks to revoke citizenship, alleging that although not “Ivan the Terrible,” Demjanjuk was a guard at Nazi death and forced labor camps. 2002: Loses U.S. citizenship again. 2005: U.S. immigration judge says Demjanjuk can be deported to Germany, Poland or Ukraine. March 11, 2009: German prosecutors issue arrest warrant, accusing Demjanjuk of being accessory to murder and say they will seek deportation from U.S. May 11, 2009: Berlin court rejects appeal against deportation; Demjanjuk leaves home by ambulance and is flown to Germany. July 3, 2009: Demjanjuk deemed fit to stand trial though his time in court must not exceed two 90-minute sessions daily. July 13, 2009: Prosecutors charge Demjanjuk with 27,900 counts of being an accessory to murder. Nov. 30, 2009: Trial begins in Munich. June 8, 2010, Court raises number of charges to 28,060 after based on evidence of more Sobibor victims. May 12, 2011: Court convicts Demjanjuk on 28,060 counts of accessory to murder, sentences him to five years in prison but releases him pending appeal. He is living in a nursing home at the expense of the German government. May 28, 2011: Associated Press quotes Ukrainians in America and Ukraine as supporting Demjanjuk’s innocence. “If there’s any way that we can help him get his citizenship reinstated, we will do anything that we possibly can,” said Tamara Olexy, president of the Ukrainian Congress Committee of America.
death camp, he lost his U.S. citizenship in 1981, was extradited to Israel in 1986 and sentenced to death in 1988. But Israel’s Supreme Court unanimously ruled in 1993 that Demjanjuk was not “Ivan the Terrible,” overturning the conviction and returning him to the U.S. But in 2002, he lost his U.S. citizenship for the second time, a new trial was set in motion in Germany and he was extradited in 2009. German state prosecutors claim John Demjanjuk volunteered to be a guard at the Sobibor death camp, where some 250,000 Jews were killed, after his capture by the Nazis in 1942. They say he trained at the nearby Trawniki concentration camp, which was used in part for instructing guards recruited from Soviet prisoners of war to work in German-occupied territories. Germany’s key piece of evidence is a Nazi ID card, which prosecutors say proves John Demjanjuk was at Sobibor. But he says he never served as a camp guard. Lending credence to the argument that the identity card is a fake is the recent discovery of a declassified U.S. Federal Bureau of Investigation report. It states that, as early as 1985, the agency believed the identity card in question was likely a Soviet fabrication. The defense has also argued that other documents exist in Russia that would exonerate Demjanjuk, but the court has rejected requests to search for them, according to the Associated Press. Villagers in Dubovi Makharyntsi also believe the Germans got the wrong man. The existence of the other, mysterious Ivan Demjanjuk is just one source of reasonable doubt about John Demjanjuk’s guilt, villagers say. “It is not possible he committed these crimes,” said Bondaruk’s son, also named Petro, who remembers the day in the early 1970s when his father returned from questioning by the KGB. “The KGB said he betrayed the nation,” Bondaruk recalled his father saying. “He couldn’t have done that. We fought against the Germans, we shared bread. How could he do something like ‘betray the nation?’” The elder Bondaruk died in 2007, but adamantly defended John Demjanjuk’s innocence to the end. The story of the two Ivan Demjanjuks begins with their births in this village. Little is known, however, about the life of Ivan Andriyevych Demjanjuk, born in 1921 -- a year fater John. But older villagers clearly recall John Demjanjuk worked as a tractor driver in the village’s collective farm. Like others, the John Demjanjuk family was poor, said Pavlina Matviychuk, his distant relative. “What good was there in this life?” she asked. She was just a child when the war broke out, but remembers John Demjanjuk as hard-working and strong. He was drafted into the Soviet Red Army in 1940. He and the elder Bondaruk fought alongside one another across war-time Europe’s blood-strewn and muddy fields, helping each other to survive, Bondaruk’s son said. John Demjanjuk was injured in 1942 and, in an effort to save him, the elder Bondaruk hoisted him onto the back of wagon, never to see his friend again. After the war, the elder Bondaruk
Pavlina Matviychuk, a distant relative of John Demjanjuk. (Natalia A. Feduschak)
returned to Dubovi Makharyntsi, as did Ivan Andriyevych Demjanjuk, with a wife and two daughters in tow. Ivan Demjanjuk worked on the collective farm as a tractor driver and kept to himself, villagers said. As for his wartime activities, no one knew anything about them. “No one knew where he was, what he did,” said the younger Bondaruk. “He worked as a tractor driver and he did such [work] so no one would see him.” He didn’t like being photographed, Bondaruk said, noting his first wife was Ivan Demjanjuk’s niece. He also had a troubled marriage, said Lida Pavliuk, the village head. “He was a mean man, was very mean to his wife and would hit her,” said Pavliuk. “The wife would say, ‘Stop humiliating me or I will go and tell everything about you.’” No one paid any attention to the woman’s words until after “all this [the John Demjanjuk case] started and after he [Ivan] hanged himself,” Pavliuk, the village head, said. Ivan Demjanjuk’s wife left Dubovi Makharyntsi after his suicide. Villagers also speculate that he might have ended his life because of marital troubles, but the timing remains suspect, they said. While no one in the village wants to put unfounded blame on a dead man, Pavliuk wonders why no one has ever bothered trying to find Ivan Demjanjuk’s widow to question her. “I’ve said before, ‘why don’t you find that woman, if she knows something,
she would say?’” Villagers here are apt to believe that the Soviet Union fabricated documents against John Demjanjuk, including the Nazi ID card on which the Germans have built their case. Bondaruk said in the early 1980s, the KGB came to Dubovi Makharyntsi and took all of John Demjanjuk’s family photos and letters he had written to his mother and sister, who remained in the village after the war. It would have been easy to doctor the ID card using photographs that had been confiscated, villagers said. Throughout John Demjanjuk’s travails, villagers here have expressed amazement that the international community has largely gone after lowranking individuals in prosecuting war crimes, while Germans themselves have remained mostly unscathed. Many also see the trial of John Demjanjuk as an indirect attack on Ukraine, which has had its own painful history of antiSemitism. Then there is the feeling that Germans are tired of taking blame for the war and are looking to spread it around. “They started the war, Germany did,” said Bondaruk. “Now they are putting the blame on another nation. How can you do that?” “They needed to hang the war on someone,” added Luda Savchuk, the village accountant. “So they hung it on John Demjanjuk.” Kyiv Post staff writer Natalia A. Feduschak can be reached at feduschak@ kyivpost.com
Kyiv Lviv
Dubovi Makharyntsi Vinnytsia Donetsk
www.kyivpost.com
June 3, 2011
Court sentences ailing ex-president of university to 5 years for bribe BY O L E S I A OL E S H KO OLESHKO@KYIVPOST.COM
Former Interior Minister Yuriy Lutsenko may be the highest-ranking former official jailed while awaiting trial, but he is hardly the only Ukrainian feeling the sting of the nation’s notoriously inhumane judicial system. Anatoliy Temchenko, the 68-yearold former president of Kryvy Rih Technical University, spent 19 months behind bars awaiting trial before his conviction on bribery charges this month. He is also reportedly suffering life-threatening health problems. On May 23, Temchenko was brought to the court room in critical condition, suffering from diabetes, cardiovascular diseases and high blood pressure. According to Andriy Didenko, coordinator of the Kharkiv Human Rights Group, Temchenko’s blood pressure reached dangerous levels on the day of his trial. He was given an injection and his condition stabilized. The court found him guilty of receiving an Hr 10,500 ($1,312) bribe and sentenced him to five years and two
Case is latest one to raise questions of rights abuses months in prison. Temchenko was arrested in 2009 and charged with receiving a bribe from a construction company that was contracted to do some repair work on campus. Temchenko’s lawyers say he is innocent and will appeal. “The court ignored some evidence and didn’t reveal documents which served as grounds for conviction,” Temchenko’s lawyer Oleh Amelchyshyn said. “I think the verdict is too tough as for a person whose guilt could not be completely proved.”
Officials with the Dnipropetrovsk Oblast’s prosecutors’ office defended the verdict and the sentence. “This is a totally adequate sentence for this type of crime,” Svitlana Chorna, an assistant to the regional prosecutor said. Temchenko was removed from his post after the charges surfaced and replaced by his deputy, Mykola Stupnyk, then by Yury Vilkul, a member of the pro-presidential Party of Regions, an appointment that raises questions for political interference. Now Stupnyk is back as acting president after Vilkul’s election as mayor of Kryvy Rih. Amelchyshyn said Temechenko may not live to serve his sentence. Temchenko’s wife, Valentyna, described his pre-trial jail conditions as inhumane. “He could spend whole days being interrogated. He was kept in a cold room without a chair even,” she told the Kharkiv Human Rights Group. Moreover, Temchenko didn’t get proper food or medical treatment, his supporters say. According to Valentyna Temchenko, he was hospitalized sev-
"Here I am, just a modest, ordinary guy like everybody else!"
NEWS ITEM: President Viktor Yanukovych said on May 30 that he walked the city on Kyiv Days, trying to make sure that nobody sees him. “But I couldn’t. People pressed me into the corner and started asking questions why I was behaving so modestly,” he said. “I told them I am a regular person, and just wanted to see how you celebrate, in what mood.” However, his press service did not provide any photos of the event to back up the story. Yanukovych, like many of the nation’s top officials, is infamous for making a fuss about his travels. Roads are blocked off to regular traffic when he commutes between his home and work, and helicopters used for traveling even to remote villages.
News/Opinion 15
Anatoliy Temchenko, former president at Kryvy Rih Technical University, was jailed for 19 months before trial and, according to supporters, denied proper medical care. He was convicted of accepting a Hr 10,000 bribe. (UNIAN)
eral times where he spent up to a week chained to the bed. On March 17, the European Court of Human Rights demanded that Temchenko “receive urgent hospitalization in a special hospital with adequate medical care.” Valeria Lutkovska, a government representative on these matters, said that Temchenko refused hospitalization in Kryvy Rih and Dnipropetrovsk. However, according Amelchyshyn, Temchenko didn’t trust local doctors. While Temchenko’s sentence may be severe, his case is not unique. The nation’s ombudsman has found that detention cells are crowded and unsanitary, conditions that spread diseases, and that detainees do not get proper medical care. Eduard Bahirov, who heads the Interior Ministry’s public advisory council, said that all inmates are entitled to decent medical care. “No matter what kind of crime committed, if they have health issues they should get medical care,” Bahirov said. But lack of money for prisons as well as the inability of advocates to
prove claims of medical need hinder inmate care. Aigul Mukanova, a lawyer representing Temchenko in the European Court of Human Rights, said Ukraine abuses pre-trial detention. “People who are kept in detention, no matter who they are – politicians or ordinary citizens,” Mukanova said. “These are people whose guilt haven’t been proven, yet they are already suffering, already risking with their health and basically serving their terms.” In May, Lutsenko was taken from his detention cell to a hospital emergency room with digestive problems, suffered as a consequence of a hunger strike. In late May, he ended the hunger strike. In 2001, ex-Prime Minister Yulia Tymoshenko said her ulcer worsened during her months-long stay in jail. Boris Kolesnikov, Ukraine’s current deputy prime minister, has also complained about inhumane treatment and political persecution experienced in 2005 when he was jailed for months on charges that were later dropped. Kyiv Post staff writer Olesia Oleshko can be reached at oleshko@kyivpost.com
Lifestyle
In ‘Honey and Ashes: A Story of Family,’ a Canadian-Ukrainian writer presents an unbrushed history of her people
June 3, 2011
Play | Food | Entertainment | Sports | Culture | Music | Movies | Art | Community Events
It’s a whole new party in Moscow
Visitors look at a North Korean painting at the Winzavod contemporary art center in Moscow on Jan. 14. A former liquor plant, Winzavod is now one the trendiest places in Moscow. (REUTERS/Sergei Karpukhin) BY K AT H Y L A L LY (C) 2011, THE WASHINGTON POST
Moscow likes to bombard the people who live and travel here with its size, importance and power. Its icons command devotion. Its wide boulevards and dense buildings overpower the pedestrian. And no matter how many times I pass the picture-perfect onion domes of St. Basil’s, the spiraling, zigzagging, swirling gold-gleaming church towers never fail to humble.œ It’s a grand city – and a tacky city, crowded with crumbling Soviet-
era apartment buildings and nouveauriche glass towers. It’s status-obsessed – the shabby 40-year-old complex where I live has a Porsche dealership on the first floor and a Rolls-Royce showroom across the street. Prada reigns a few blocks away, and drunks sleep in my neighborhood park. At the same time, it’s resolutely dismissive of everyday life, with dreary storefronts and dark underground passageways where kiosks offer ordinary shoppers shoes, underwear, milk and bread. œ It’s an amazing, intriguing and rewarding place – I never tire of urging
Advertising: +380 44 234-65-03 advertising@kyivpost.com
friends to visit – and I thought I knew it pretty well, until I discovered another Moscow, nearly hidden somewhere between excess and deficiency, a very cool city with cutting-edge galleries, cafes and clubs, all informed by an urbane sensibility and designed on an intimate scale. Call it hip Moscow. My friends Sue and Chris, who had both worked here in the 1990s, crammed in two days of sightseeing after coming to town for a conference a few weeks ago. They already knew the Kremlin and the well-established museums, and now they wanted to
Editorial staff: +380 44 234-65-00 news@kyivpost.com
$PNJOH 4PPO
see the less familiar. They ended that Saturday astonished after visiting the bright white box of the Multimedia Art Museum, on one of Moscow’s oldest streets, Ostozhenka, where the wealthy lived in the 16th-century era of Ivan the Terrible. The museum was started in 1996 as the Moscow House of Photography and reopened at the end of last year as the Multimedia Art Museum after a fiveyear renovation. Sue and Chris were struck by how many young Muscovites and Russian families filled the museum, and how it engaged its visitors, 24
Subscriptions: +380 44 234-64-09 subscribe@kyivpost.com
$[FDI 3FQVCMJD July 8, Kirill and Mefodiy Day
*UBMZ June 10, Independence Day
#FMHJVN July 22, National Day
4XFEFO June 17, National Day
4XJU[FSMBOE August 5, Confederation Day
To be an advertising partner for World in Ukraine, please contact advertising@kyivpost.com or call 234-6503
19 www.kyivpost.com
Night N O Owl WITH ALINA CHERNYSH CHE CHERNYSH@KYIVP CHERNYSH@KYIVPOST.COM
Rich, beautiful converge on D’Lux club to share glances One of the most famous hot spots for people with attitude and money is, without a doubt, Dinamo Lux, aka D’Lux. It would be hard to find a person in the Kyiv business community who has never heard of this luxury place, which has seen many renovations since 1939 when it was first built. This entertainment complex offers you The Park restaurant and terrace, D’Lux lounge bar, nightclub and D’Lux boutique: a great variety of opportunities to empty your wallet. Instead of boring you with a food review, let’s talk about parties. First of all, I would like to personally thank you for the billion stairs at the entrance. Of course, it does not make any difference to men, but climbing those on 15-centimeter heels is a real pleasure. Conquering Mount Everest doesn’t sound like such a bad idea after all. However, the stairs indeed look very nice, decorated according to the party theme, which, I agree, makes your trip slightly more pleasant. By the way, if you prefer casual clothing, you won’t pass face control. So take your white sport shoes elsewhere. There are four levels in the club with the dance floor located at the very top, which means more stairs, dear ladies. The public in D’Lux tends to act like “the chosenâ€? and the “crème de la crème,â€? and they perfectly fit in this place where lust meets glamour. For many of them, clubbing means staring up and down each other, checking out the Louboutins on “that lady over there,â€? the Valentino suit on “that man at the barâ€? and thinking that it must be time to go shopping again, while wearing something not a penny cheaper themselves. You might think – how pathetic (which it is) but others will say: Welcome to D’Lux. The goal of many clubbers here is to show off their success; having fun and actual dancing is secondary. I have heard various opinions about D’Lux, but we all tend to agree on one thing: There is no other place in the city where you’ll meet such a fearful amount of women, offering their not at all free overnight services. And since the place is packed with foreigners, it is perfectly clear now where the spoiled impression of Ukrainian women is coming from. And you can’t blame them because it’s a ridiculous market of beauty for sale. It would be unfair not to mention how incredibly extravagant the interior of D’Lux is. The designers did a wonderful job on making it very tasteful. Everything here screams “wealth.â€? 20
www.kyivpost.com
Entertainment Guide 17
June 3, 2011
Schiller Feel good saxophone von Electro
When we heard the name Schiller, we immediately thought of the 18thcentury renowned German poet and writer and weren’t far from the truth. Musician Christopher von Deylen was so inspired by this dramatist, he named his music project after him. Von Deylen is big in the world of electro with singers from Sarah Brightman to Enya occasionally joining him onstage. In the music business for 12 years already, Schiller is known for amazing lighting effects during the show and 12 albums. In Kyiv, he will present a purely electronic show, which means no acoustic instruments, no vocals, only synthesizers, electronic drums and percussion. Saturday, June 4, 9 p.m., Stereoplaza, 17 Kikvidze St., 222-8040, metro Druzhby Narodiv, www. stereoplaza.com.ua. Tickets: 250-400.
Ukrainians are really lucky to have so many top-notch jazzmen performing in Kyiv. Time to welcome Bill Evans in the ranks, an American saxophone player. It’s hard to deďŹ ne his genre as he often pours elements of country, rock and even hip-hop into his astonishing jazz. Grammy-nominated artist, Evans makes his saxophone do wonders and calls his music style “feel good.â€? When he was just 22 years old, he was noticed by a legendary jazzman Miles Davis who invited him for a joint performance at the end of the 80s. Their collaboration endowed the world with some four notable albums. Monday, June 6, Budynok Khudozhnyka, 1-5 Artema St., Lvivska Square, www. jazzinkiev.com. Tickets: Hr 100-260.
Monday, June 6
Playing with fire This two-day festival is all about ďŹ re, circus and tricks. Some 500 artists from all over the world will demonstrate their astonishing skills of taming the ďŹ re during the ďŹ rst day of the show, which marks its ďŹ fth birthday this year. You can join a festive parade: Wear something bright and bring a mask for that. The second day will be for those who want to play with ďŹ re themselves. You’ll get a chance to learn the basics of ďŹ re tricks, play the drums and draw grafďŹ ti with the help of ames. At the end of the festival, best ďŹ re artists from the UK, France, Ireland, and Germany, among others will present a grand show. Friday, June 10, 8 p.m., Poshtova Ploshcha, www.ďŹ refest.info. Free admission. Saturday, June 11, 3 p.m., Spartak stadium, 105 Frunze St. Tickets: Hr 45.
Friday, June 10 Saturday, June 11
(Liliya Klyatsevych)
(Courtesy)
Tuesday, June 7
(www.billevanssax.com)
(Courtesy)
Saturday, June 4
Crimean Tatar exhibition Every Crimean Tatar family has a story to tell. After deportations on Joseph Stalin’s orders starting 1944, they weren’t allowed to come back for some 40 years. When the Soviet Union fell apart, they poured back in. Two Americans – a photographer and an ethnographer – went on a trip around the peninsula to photograph this ethnic minority’s daily exploits in modern Ukraine and interviewed many of them to put a human face to the story. Photo exhibit “No Other Home� encapsulates many stories from Mustafa Dzhemilev, the leader of the Tatars in the Crimea, to an ordinary man, who was happy to buy back the house he was born in. From June 7 – July 10, 10 a.m. – 5.30 p.m. Ivan Honchar museum, 29 Mazepy St., 360-9077, metro Arsenalna. Free admission.
Compiled by Nataliya Horban
Want to adver tise in
25% discount for embassies
25%
discount for embassies
-JGFTUZMF Please call
NEW BOMBAY PALACE
Indian cuisine 33-A, Druzhby Narodov blv. 285-99-99, (067) 44-77-666
or e-mail:
BEWFSUJTJOH!LZJWQPTU DPN
(44) 272-3134
T
14A Artema Str., square www.restoranchik-fluger.com.ua
18 Entertainment Guide
www.kyivpost.com
June 3, 2011
Movies
Live Music movie tells the story of the most dangerous type of people who have nothing to lose. A very decent criminal drama from a young talented Turkish filmmaker Erzhan Kozan. http://www.imdb.com/title/tt1757940/
In ‘Kavsak,’ accountant Guven pretends he has a happy family but does he? (www.sinemam.ne)
KAVSAK Turkey 2010 Language: Turkish with English and Ukrainian subtitles Directed by Selim Demirdelen Starring Sezin Akbasogullari, Cengiz Bozkurt If you want to learn what a real drama is, you should see this film. Guven works in an accounting company. Colleagues like him, especially for his emotional stories about his happy marriage and his wonderful daughter. At times, he seems so happy that his co-workers envy him. But the truth is shocking. At the end of the day Guven comes home, and he is the only
person in his flat. His amazing family life is a huge lie and he keeps building it up a year after year. But why? CAKAL Turkey 2010 Language: Turkish with English subtitles Directed by Erhan Kozan Starring Çetin Altay, Haldun Boysan, Erkan Can Akin is a young man whose life radically changes when his mother dies. He has no money and his future seems gloomy and hopeless. His despair pushes him to a crime, which he is hesitant about but his girlfriend pushes him to the edge. The
Compiled by Alexey Bondarev
HIGN NOON USA 1952 Language: English with English subtitles Directed by Fred Zinneman Starring Harry Cooper and Grace Kelly Cooper and Kelly were definitely one of the best screen couples ever. They had an on-set affair, which surely added a bit of realism to their chemistry on-screen. Apart from that, High Noon is a decent product of the Hollywood of the 1950s – a western drama with a tense, though slightly predictable plot. A lawman gets married and quits his job. He is about to leave town with his spouse, but then he is told that a man he sent to prison years ago returns on the train at noon. The lawman can leave but he decides to stay and face the enemy. A timeless classics. MASTERCLASS CINEMA CLUB 34 Mazepy St., 594-1063. High Noon June 9 at 7 p.m. ZHOVTEN 26, Kostyantynivska St., 205-5951. Kavsak June 1-5 at 7:30 p.m. Cakal June 5 at 7:35 p.m.
(venagid.ru)
Best classical picks Saturday, June 4: concert of violin music with pieces by Brahms, Debussy, Popper and others at 7 p.m., Budynok aktora, 7 Yaroslaviv Val St., 235-2081, www.actorhall.com.ua. Free admission. Saturday, June 4: Kyiv symphonic orchestra and choir will perform Mozart’s Requiem at 7 p.m., National philharmonic, 2 Volodymyrsky uzviz, 278-1697, www. filarmonia.com.ua. Tickets: Hr 20-100. Tuesday, June 7: concert of bandura music at 7 p.m., National philharmonic, 2 Volodymyrsky uzviz, 278-1697, www.filarmonia.com.ua. Tickets: Hr 20-70. Wednesday, June 8: the night of French music with pieces by Rameau, Henri Vieuxtemps, Ravel and others at 7 p.m., Budynok aktora, 7 Yaroslaviv Val St., 2352081, www.actorhall.com.ua. Tickets: Hr 20-40. Thurday, June 9: National brass orchestra will play pieces by Karaev, Runchak, Varez at 7 p.m., National philharmonic, 2 Volodymyrsky uzviz, 278-1697, www. filarmonia.com.ua. Tickets: Hr 20-70.
Band from Ternopil ‘Los Colorados’ (sumno.com.ua) ART CLUB 44 44B Khreshchatyk St., 279-4137, www.club44.com.ua Concerts traditionally start at 8 – 10 p.m. June 3 Gurt Yogurt, Hr 50 June 4 Without Limits, Red Rocks, Hr 50 June 5 Ivan Smirnov (Russia) June 7 Summer Jazz Nights Vocal Battle: Aniko Dolidze vs. Laura Marti, Hr 50 June 8 Yulia Roma, Hr 20 June 9 Balkan Party: In Love Band, Hr 30 DOCKER’S ABC 15 Khreshchatyk St., 278-1717, www.docker.com.ua Concerts traditionally start at 9:30 – 10 p.m. June 3 Tabula Rasa, Vostochny Express, Hr 70 June 4 Los Colorados, Foxtrot Music Band, Hr 70 June 5 Chill Out, free admission June 6 Gera and Second Breath, free admission June 7 Partizanskie Vytivky, Hr 20 June 8 The Magma, Hr 30 June 9 Tex-Mex Company, Hr 30 DOCKER PUB 25 Bohatyrska St., metro Heroyiv Dnipra, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. June 3 Chicherina, Red Rocks, Hr 100-150 June 4 Flit, Vostochny Express, Hr 70 June 5 Valentin Strykalo, Lemmons, Hr 80-150 June 6 Tuapse, The_Twisterz, Mojo Jo Jo, Hr 40 June 7 Robots Don’t Cry, Tres Deseos Latino Party, Hr 40 June 8 Switch On The Lights, Rockin’ Wolves, Hr 40 June 9 Rolyova Model, Animals Session, Hr 40 BOCHKA PYVNA ON KHMELNYTSKOHO 4B-1 Khmelnytskoho St, metro Teatralna,
390-6106, www.bochka.com.ua Concerts traditionally start at 9-10 p.m. June 3 Beefeaters, Carte Blanche June 4 G Sound June 9 Chill Out PORTER PUB 3 Sichnevogo Povstannya St., 280-1996, www.porter.com.ua Concerts traditionally start at 7:30 p.m. June 3 Yuhym Dym June 4 Dikie Liudi June 5 Tartila June 8 Ivan Bliuz June 9 Tysha JAZZ DO IT 76A Velyka Vasylkivska St., 289-56-06, http://jazz-doit.com.ua Concerts traditionally start at 8:30 p.m. June 3 Jazz Inside June 4 Yelena Pugachova June 8 Alexander Marchenko Other live music clubs: GOLDEN GATE IRISH PUB, 15, Zolotovoritska St., 235-5188, http://goldengatepubkiev.com/ TO DUBLIN IRISH PUB, 4 Raisy Okipnoi St., 569-5531, http://www.to-dublin.com.ua/ PIVNA NO.1 ON BASEYNA, 15 Baseyna St., 287-44-34, www.pivna1.com.ua DRAFT 1/2 Khoryva St., metro Kontraktova Ploshcha, 463-7330 KHLIB CLUB 12 Frunze St., www.myspace.com/xlibclub CHESHIRE CAT 9 Sklyarenko St., 428-2717 O’BRIEN’S 17A Mykhaylivska St., 279-1584 DAKOTA 14G Heroyiv Stalinhrada St., 468-7410 U KRUZHKI 12/37 Dekabrystiv St., 562-6262.
Compiled by Svitlana Kolesnykova
$PHULFDQ 0%$ LQ 8NUDLQH 6WHUOLQJ %XVLQHVV 6FKRRO DQG 5RZDQ 8QLYHUVLW\ 86$ $QQRXQFH
First Authentic – Fully Accredited (AACSB International) American MBA offered in Ukraine – exclusively for Ukrainian Citizens! Special Blended Online – Live Content Program – designed for Ukrainian Professionals Graduate and receive diploma in Ukraine, or at Rowan University, New Jersey USA – Your choice!
6SHFLDO 3ULFLQJ 8NUDLQLDQ FLWL]HQV RQO\ +380 44 362-02-53
For further information and registration for an informational session, go to
www.sbs-ua.com
Hosting a party or an event? Have a lifestyle tip for us?
Have an opinion to express about what’s going on in Kyiv? The Kyiv Post welcomes tips and contributions. Please e-mail your ideas to Lifestyle Editor Yulia Popova, at
popova@kyivpost.com. Please include e-mail address and contact phone number for verification.
www.kyivpost.com
Lifestyle 19
June 3, 2011
Ukrainian-Canadian writer dissects immigrant story BY N ATA L I A A . F E D US C HAK FEDUSCHAK@KYIVPOST.COM
Ukrainian-Canadian writer Janice Kulyk Keefer had a story to tell. It was the story of the Old Place, a locale where women worked the fields while their men toiled in foreign lands to earn enough money to buy a tiny bit of property back home. It was also a place where – after years of backbreaking work – invading communist regimes confiscated that hard-earned property, forcing its owners to flee and carve out new lives somewhere else. When Kulyk Keefer’s story of the Old Place was published to high acclaim in 1998 as “Honey and Ashes: A Story of Family,” it struck a chord with many Canadian readers. While the setting of her tale was pre-World War II Ukraine, it was in many ways the universal Canadian immigrant narrative: It was the story of new beginnings, of those generations that followed the ones which left places like the Old Place. It was also the story of conflicting identities, of a yearning to fit into a new world while also making sense of that which defined one’s past. “It is both an intensively Ukrainian and Canadian book. It speaks to anybody who has this double identity,” Kulyk Keefer told the Kyiv Post in a telephone interview from her home in Canada. “With ‘Honey and Ashes,’ I also wanted write out of, and about, the Canadian experience of having
roots in another country and culture… In America, there is a strong myth of what it is to be American. It’s so quintessentially Canadian to be the uncertain child of immigrants.” Considered one of Canada’s leading writers, memory and the immigrant experience have been important themes in Kulyk Keefer’s works. The author of over a dozen books, she was born in Toronto to immigrant parents. She studied literature in England and France, and currently teaches at the University of Guelph, some 100 kilometers west of Toronto. Although Kulyk Keefer grew within the Ukrainian diaspora, she moved away from that community later in life, both emotionally and physically. It was “the pressure of time and of wanting to pay homage to my parents and grandparents” that finally led to her writing “Honey and Ashes,” she said. “They had all kinds of stories dealing with suffering and hardship and extraordinary beauty,” Kulyk Keefer said of her family. “But I also came to realize that there were stories concerning things I hadn’t asked about as a child: things about others that I needed to know, however painful or difficult it might be to tell or hear them.” Along with painstaking research, she took a trip back to her grandparents’ village, Staromischyna, which means Old Place in Ukrainian, located in Ternopil oblast. It was a journey that took her full circle, and allowed her to
Ukrainian-Canadian writer Janice Kulyk Keefer (Courtesy)
explore Ukraine as it was, rather than through the myth often created by Ukrainian immigrants, which forbids critique. “To say anything that contests or conflicts with the [reigning] wisdom is seen to be disloyal or to betray the ethnos.” Having looked west to the land of her ancestors, Kulyk Keefer is now looking toward Ukraine’s east as inspiration for her next undertaking. She just returned to Canada after spending several months in Europe
lecturing and researching a book on Halyna Kuzmenko, a long-time partner and aide to Nestor Makhno, the Ukrainian anarchist who led an independent army in Ukraine during the Russian Civil War. “I’m interested in her as a reluctant political heroine,” Kulyk Keefer said. Despite its sizable community, the Ukrainian experience – or Ukrainian themes as such – still have not been adequately described in Canada, she said. That, however, is slowly beginning to change.
“I find it very interesting that in our multicultural Canadian state, Ukraine seems to be very, very much off stage,” she said. “It’s been extremely difficult for a critical mass of writers or artists dealing with their connection to Ukraine to come into voice. It’s finally beginning to take an interesting shape now, thanks to the efforts of artists, critics, scholars.” In part, that is because Ukraine itself is changing and becoming more open to a larger world. “I know there are all kinds of problems politically, but what a fiercely interesting place Ukraine is today,” she said. “For a long time nobody in the West seemed to know about it. It was a place that you went to with an ambiguous mission if you were a Ukrainian-American or Ukrainian-Canadian: to keep the diaspora faith, but also to encounter a world the diaspora couldn’t or wouldn’t recognize as authentic… Now you can go to Kyiv or Lviv the way you might go to Prague or Warsaw: as a compelling tourist destination.” While Ukraine may still be “wrestling with the traumas of Russian imperialism and severe economic hardship, for us, ethno-tourists, it is now open and alive – free – in a way that we’ve never known it to be,” she said. Kyiv Post staff writer Natalia A. Feduschak can be reached at feduschak@ kyivpost.com
20 Lifestyle
www.kyivpost.com
June 3, 2011
After-party Cannes
To party at D’Lux, get your best wardrobe out, bouncers won’t appreciate flip-flops no matter how hot it is outside. (jetsetter.ua)
D’Lux screams wealth, attracts beauties for sale
A guest poses with an improvised old-fashioned camera.
Tatyana Mitus of World Fashion TV.
Some of the stardust from Cannes Film Festival reached Kyiv on May 27 at b-hush lounge bar in InterContinental Hotel. Killer stilletos, flowing skirts and bow ties flocked to this posh venue for the concert of French singer In-Grid. In the air of wealth and high status, fancy people celebrated Ukraine’s small, but important victory. Filmmaker Maryna Vroda days earlier won the Best Short Film award for her 15-minute feature “Cross.� Ironically, the film tells a story about social deprivation in modern Ukraine and the world in general. (Alex Furman)
French singer In-Grid (L) and Eduard Kalivoshko from Legko Travel & Events
Russian actor Daniil Belykh
16 For some guests, a lounge bar is more fun than the actual club. Just avoid the glances from the dark tables in the corners and enjoy the light music and the more or less cozy atmosphere. To get some privacy, you can always order a table here at a cost that could provide a poor babushka in Bykovo village with food for at least a month. I adore the Park Terrace. A lot of business events take place here during the day and it seems to suit this purpose just right. The terrace is full of light and the interior is different from the club, but they make a perfect match together, as day and night. On the first floor, between the two WCs is a purple room also known as a D’Lux boutique. Here you can purchase luxury accessories at an insane price to brag about in front of your friends later. I believe this must be the only reason people would pay that much for jewelry. On the way out of the complex, you will see a great amount of fancy cars
D’Lux crowd acts like 'the chosen' ones, at a club where lust meets glamour parked at the entrance. I guarantee you won’t see such a variety on the streets in Western Europe, for example. For those of you who don’t know it yet, some parts of Kyiv are like a fashion show runway and some people just can’t wait to walk that catwalk and have their picture taken. But who am I to judge? Everyone has their own views and ideas on what constitutes a successful life. Alina Chernysh works for the ISTIL Group, which is owned by the publisher of the Kyiv Post.
Exclusive Media Partner
Kiev Cricket Club gladly welcomes teams participating in the Kyiv Cricket League: KCC, BUCC, Seniors, Friends, Kagarlyk, Combined XI & EverGreen XI The League’s competition begins on May 28 through August 14, 2011 with games at the Voskhod Stadium at 6 Pryvokzalna Street, Kyiv. You are invited with family, friends & colleagues! Cold beer & snacks available to beat the heat & enjoy watching the game.
%$ !
#
Next weekend matches:
' Saturday ( Sunday ) Monday
# !
! !
!
# !
12:30 PM 4:00 PM 12:30 PM 4:00 PM
!
4:00 PM
Results of Kyiv Cricket League held on May 28-30, 2011:
# %+ Saturday
# %, Sunday
# &$ Monday
# ! ! ! ! ! ! !
" # * " Man of the Match: Sailesh Rajendraprasad
! " # ) " Man of the Match: Faisal
" # , " Man of the Match: Jai Narula
! " # %$ Man of the Match: Bimal
" # &( Man of the Match: Sukhwinder
Kagarlyk: 90 runs/All out KCC: 91 runs/3 wickets BUCC: 121 runs/7 wickets EverGreen: 122 runs/4 wickets BUCC: 110 runs/9 wickets KCC: 114 runs/1 wicket EverGreen: 159 runs/8 wickets Combined: 139 runs/9 wickets Friends: 185 runs/6 wickets Seniors: 150/All out
Thanks for everyone involved in the Kyiv Cricket League!
Please let us know if you would like to play. To register please contact Mr. Wayne, KCC, at +380 (50) 358-88-49 or Mr. Shailesh, KCC, at +380 (50) 355-61-16 For more information please visit kyivpost.com/projects/cricket
WWW KYIVPOST COM
How to place an Employment Ad in the
Prices for ads (UAH)
Kyiv Post
Size (mm)
By Fax, Phone or E-mail (from 9 a.m. to 6p.m. Ask for Nataliia Protasova)
Tel. +380 44 234 6503, Fax. +380 44 234 6330 e-mail: protasova@kyivpost.com All prices are given without VAT.
The
%MPLOYMENT 21
June 3, 2011
ENVIRONMENTAL NGO MAMA-86
B&W
Color
Is looking for full time
15 boxes 260Ă—179,5
11 931
15 907
9 boxes 154,5Ă—179,5
7 158
9 544
4 boxes 102x118
3 333
4 444
ENVIRONMENTAL POLICY INTEGRATION/ SUSTAINABLE DEVELOPMENT MANAGER
2 boxes 102Ă—56,5
1 666
2 222
Essential Qualifications: • Degree in Environment or Equivalent • Knowledge of EU Policy • Fluency in Ukrainian, Russian & English (spoken, written) • Self – management skills • Working experience in International Projects
The
"%.*/*453"5*7& "44*45"/5 IS LOOKING FOR A
COMMERCIAL DIRECTOR We are searching for a dynamic, energetic leader who will oversee the advertising, marketing, web development and distribution divisions of the news organization to maximize revenue. This person will work in partnership with the editorial staff of the Kyiv Post to ensure that the organization retains its high level of trust and credibility in the community. This person is essential to ensuring that the news organization serves its readers and advertisers well. We are searching for a go-getter with business development experience who: Is well-connected and respected in Kyiv; Has experience in selling advertising online and in print, and in negotiating deals and agreements; Has the personal skills to lead, train and motivate the staff; Understands the competitive market for journalism in Ukraine; Has fresh ideas for monetizing journalistic content; Stays on top of fast-changing trends in the media industry.
Please send CVs, motivation letter and business proposal to Brian Bonner, senior editor of the Kyiv Post, at bonner@kyivpost.com
One of Ukraine's top news sources, has an ongoing student internship program. We have openings for students who are:
6OJUFE 4UBUFT "HFODZ GPS *OUFSOBUJPOBM %FWFMPQNFOU 64"*% 6LSBJOF "OOPVODFNFOU Š
majoring in journalism or mass communications or studying to become translators To be considered, please send CV to Brian Bonner, chief editor, Kyiv Post at bonner@kyivpost.com
%65*&4 "/% 3&10/4*#*-*5*&4 5IF "ENJOJTUSBUJWF "TTJTUBOU GPS UIF 0GGJDF PG %FNPDSBDZ BOE (PWFSOBODF POF PG UISFF UFDIOJDBM PGGJDFT JO UIF 64"*% XJMM CF TVQFSWJTFE CZ UIF 0GGJDF %JSFDUPS 5IF QPTJUJPO T QSJODJQMF GVODUJPOT JODMVEF BENJOJTUSBUJWF TVQQPSU UP UIF 0GGJDF %JSFDUPS TFSWJOH BT 0%( 5JNFLFFQFS BOE BTTJTUJOH 0%( UFDIOJDBM TUBGG JO QPSUGPMJP SFWJFXT SPVOEUBCMFT BOE TDIFEVMJOH GPS BTTFTTNFOUT BOE QSPKFDU FWBMVBUJPOT 5IF "ENJOJTUSBUJWF "TTJTUBOU JT BMTP GBNJMJBS XJUI UIF CVEHFU GJOBODF BOE SFTQPOTJCJMJUJFT PG UIF 0%( 'JOBODJBM "OBMZTU BOE XJMM CF BCMF UP DPWFS IJT IFS QPSUGPMJP 3&26*3&% 26"-*'*$"5*0/4 &EVDBUJPO " 6OJWFSTJUZ %FHSFF PS IPTU DPVOUSZ FRVJWBMFOU JT SFRVJSFE "O BEWBODFE EFHSFF PS UFDIOJDBM TUVEZ JO QSPKFDU NBOBHFNFOU BOE BENJOJTUSBUJWF EJTDJQMJOFT JT IJHIMZ EFTJSFE 1SJPS 8PSL &YQFSJFODF "U MFBTU UISFF ZFBST PG QSPHSFTTJWFMZ SFTQPOTJCMF BENJOJTUSBUJWF FYQFSJFODF SFMBUFE UP EFWFMPQNFOU JTTVFT BOE QSPKFDUT JO 6LSBJOF JT SFRVJSFE "U MFBTU POF ZFBS PG SFMFWBOU QSPKFDU NBOBHFNFOU BTTJTUBODF FYQFSJFODF JT TUSPOHMZ EFTJSFE -BOHVBHF 1SPGJDJFODZ -FWFM *7 GMVFOU JO &OHMJTI BOE OBUJWF GBDJMJUZ JO 6LSBJOJBO BOE 3VTTJBO JT SFRVJSFE
5IF GVMM WFSTJPO PG UIJT "OOPVODFNFOU JT BDDFTTJCMF BU IUUQ VLSBJOF VTBJE HPW FNQ TIUNM $-04*/( %"5& '03 "11-*$"5*0/4 +VOF BU 1. ,ZJW UJNF CZ FŠNBJM BUUBDINFOU POMZ UP LZW Š !VTBJE HPW
Ukrainian NGO with a grant from international donor invites applications for the positions
BUDGET ANALYST
Short-term contract: June-September 2011 Requirements: Experience of work in financial bodies of central or local authorities, State Treasury of Ukraine Responsibilities: monitoring and analysis of budget execution, analysis of legislative and normative base in the area of state and local budgets’ execution, etc.
UTILITY ENTERPRISE PLANNING SPECIALIST
Short-term contract: June-September 2011 Requirements: experience of work in utility enterprises Responsibilities: financial and economic analysis of strategic planning documents, development of planning methods for mid-term financial activities of utility enterprises, etc.
is hiring:
The
Qualified candidates are invited to submit a resume/CV and motivation letter till 20 June 2011 on the following e-mail address info@mama-86.org.ua with the position title in the subject line of the message.
ENERGY COSTS MANAGEMENT SPECIALIST
Lifestyle Reporters The ideal candidate is an enthusiastic journalist who knows Kyiv well and revels in the capital's cultural life -- from nightclubs to galleries and film festivals -- and then can engagingly write it all up by day. We are looking for a person who enjoys the celebrity scene and who thrives on telling stories and writing blogs about the latest trends in the cultural and social scene. We are looking for candidates with fresh ideas and lively writing styles!
Experience: experience of work in utility enterprises Requirements: development of methods for analysis of energy-intensity costs and efficiency of energy consumption management, etc.
To apply, send CV, three story ideas and a letter explaining why you want to work for the Kyiv Post, to: Yuliya Popova, Lifestyle Editor, at popova@kyivpost.com
For additional information about the positions, please refer to our web-site: www.ibser.org.ua (section “Announcements�)
Get your free copy of the 5 ( * 'SJEBZT " #FTBSBCTLB 4RVBSF
Short-term contract: July-September 2011
on Fridays in the following places: 1MBOFUŠ4VTIJ 4BLTBIBOTLPHP 4USFFU ,ISFTDIBUZL 4USFFU 7FMZLB 7BTZMLJWTLB 4USFFU
*M 1BUJP /BCFSF[IOPŠ,ISFTDIBUZUTLB 4USFFU 4BLTBHBOTLPHP 4USFFU " #FTTBSBCTLB 4RVBSF 7FMZLB 7BTZMLJWTLB 4USFFU
*OUFSDPOUJOFOUBM ,ZJW " 7FMZLB ;IZUPNZSTLB 4USFFU 7FSPOB 1J[[B " - 5PMTUPHP 4USFFU & ,POTUBOUJOPWTLBZB 4USFFU
.POBDP " 7FMZLB ;IZUPNZSTLB 4USFFU
4IPLPMBEOJUTB #PIEBOB ,INFMOZUTLPHP 4USFFU 4BLTBHBOTLPHP 4USFFU $IFSWPOPBSNJZTLB 4USFFU " #BTFZOB 4USFFU -VOBDIBSTLPHP 4USFFU %OJQSPWTLB /BCFSF[IOB 4USFFU -VHPWB 4USFFU " "SUFNB 4USFFU (SZTILB 4USFFU
3BEJTTPO #-6 :BSPTMBWJW 7BM 4USFFU 4PIP "SUFNB 4USFFU
'PS NPSF JOGPSNBUJPO BCPVU XIFSF UP HFU ZPVS DPQZ PG UIF ,ZJW 1PTU HP UP IUUQ XXX LZJWQPTU DPN OFXTQBQFS EJTUSJCVUJPO
22 %MPLOYMENT
WWW KYIVPOST COM
June 3, 2011
Human Capital Ukraine is looking for qualified candidates for the following positions of our clients:
Kaercher seeks candidates for the position of full time
PERSONAL ASSISTANT Duties: • Daily/monthly personal planning, schedule • Presentations (Power Point) • Important tasks implementation • Translations Requirements: • English and German (advanced) • Flexibility • Responsibility • MS Office (advanced) • Organizational Skills If interested, please send you CV to olga.manmar@ua.kaercher.com, subject Personal Assistant. Visit www.karcher.ua for more information.
Founded in 1990, AGCO Corporation (NYSE: AG) (www.agcocorp.com) is a global manufacturer of agricultural equipment and related replacement parts. AGCO’s full agricultural product line includes tractors, combines, hay tools, sprayers, forage, tillage equipment and implements; which are distributed through more than 3,200 independent dealers and distributors in more than 140 countries worldwide. AGCO products include the following well-known brands: ChallengerŽ, FendtŽ, Massey FergusonŽ, and ValtraŽ. The Company is headquartered in Duluth, Georgia USA and had net sales of US$ 8.4 billion in 2008. The European headquarters are located in Neuhausen, Switzerland.
Technical Service Specialist
Product Specialist, Harvesting
OVERVIEW: This position provides technical assistance on service related matters, trains and supports dealers in areas of problem research/resolution as and when required. This position focuses on Harvesting and Tillage products. MAIN TASKS: ‹ - ÂŚ / ƒ Warranty, Legal, and Commercial ‹ relevant audience groups ‹ - ' contact systems ‹ ( ' database. Daily load of issues ‹ " * service problem reports ‹ ' .+- ' ‹ / ‹ / ƒ ‹ + courses ‹ + . - ( ‹ + ƒ / / ‚ / include the translation of materials into a local language ‹ necessary REQUIREMENTS: ‹ /  y ÂĄ industry experience or a recognized qualification. Agricultural engineering apprenticeship/HND ‹ # " * ‹ & techniques ‹ # ƒ ‹ ‹
‹ "
‹ # + ƒ ( * ‚ " * a plus ‹ ‹ Ă‘ - English languages
The
If you meet the above criteria and you are looking for an opportunity to apply your skills and to work in an inspiring multinational environment of a leading global player for agricultural solutions, please register your profile and upload your application at: http://www.agcocorp.com/north_american_job_search.aspx All jobs are located within the link. Use the location dropdown to find the vacancies in the location of your choice.
IS LOOKING FOR A
NEWS EDITOR
Please send CV, three writing or editing samples and an explanation of why you want to work for the Kyiv Post, one of Ukraine’s top news sources, to:
Brian Bonner, chief editor, Kyiv Post at bonner@kyivpost.com
MAIN TASKS: The key responsibilities that this position carries will cover: ‹ + . . technical queries on the product of responsibility and ensure timely response to critical requests. The position will provide field Ă‘ ƒ ƒ & ‹ + ƒ + $ Guide, identification of future market and product development needs ‹ + Ă‘ . / ƒ Ă‘ ‹ including development and maintenance of a competitive comparison database and participation in major farm shows ‹ REQUIREMENTS: ‹ ¢ ÂŚ ÂŚ Engineering/Agronomy ‹ 0 field. ‹ "
‚ ‹ audiences ‹ ‚ ‹ # ‹
different locations ‹ 2 ( ÂŚ  { Ò time) ‹ 2 2 ‹ ' „ ! - ƒ of an advantage ‹ # + ( * + + ƒ ƒ + Ă‘ + If you meet the above criteria and you are looking for an opportunity to apply your skills and to work in an inspiring multinational environment of a leading global player for agricultural solutions, please register your profile in English and upload your application at: http://www.agcocorp.com/north_american_job_search.aspx If you have additional questions, please contact us at AnastasiyaIvanova@mos.agcocorp.com
If you have additional questions, please contact us at AnastasiyaIvanova@mos.agcocorp.com
Director Production/Sales (CEO) MINI
RESUME
THE IDEAL CANDIDATE SHOULD: Have fluency in English, Ukrainian and Russian. Show good news judgment and have the ability to work quickly under deadline. Have experience in news editing.
OVERVIEW: / + . # . ( . activities for harvesting in EEA. This position ensures both AGCO Staff Ñ . relating to the products to enable them to achieve AGCO’s goals, throughout the EEA region.
(FSNBO QBTTQPSU IPMEFS TFFLT QPTJUJPO PG %JSFDUPS )FBE PG 30 1SPKFDU .BOBHFS 4BMFT %JSFDUPS ŠZFBS FYQFSJFODF JO QSPEVDUJPO TBMF EJTUSJCVUJPO JODM $&0 #% 4USPOH NBOBHFNFOU DPNNVOJDBUJPO TLJMMT OFUXPSLJOH JO 6LSBJOF $*4 8FTUFSO &VSPQF 'MVFOU (FSNBO 3VTTJBO 8PSL QFSNJU . ,ZJW (FSNBOZ SFBEZ UP SFMPDBUF 7UVTUFQ!ZBIPP EF
Š Š
Marketing/PR MINI
$*. EJQMPNB JO .BSLFUJOH ZFBST PG NBSLFUJOH FYQFSJFODF ZFBS BT 13 %JSFDUPS %FWFMPQJOH QSPKFDUT BCSPBE 13 DPNQBJHOT (PPE SFMBUJPOT XJUI .FEJB NBSLFU 'MVFOU &OHMJTI 3FBEZ UP USBWFM 3FTVMU PSJFOUFE WFSZ GMFYJCMF FYDFMMFOU DPNNVOJDBUJPO TLJMMT ' ,ZJW SFBEZ UP SFMPDBUF NPSP[LB L!NBJM SV
Š Š
Š Š ,BUFSJOB
Director & BDM MINI
RESUME
Please see our web-site www.human-capital.org.ua for detailed descriptions. Confidentiality is guaranteed to all candidates. Please send your CVs to cv@human-capital.org.ua with indication of the vacancy title.
Founded in 1990, AGCO Corporation (NYSE: AG) (www.agcocorp.com) is a global manufacturer of agricultural equipment and related replacement parts. AGCO’s full agricultural product line includes tractors, combines, hay tools, sprayers, forage, tillage equipment and implements; which are distributed through more than 3,200 independent dealers and distributors in more than 140 countries worldwide. AGCO products include the following well-known brands: ChallengerŽ, FendtŽ, Massey FergusonŽ, and ValtraŽ. The Company is headquartered in Duluth, Georgia USA and had net sales of US$ 6.9 billion in 2010. The European headquarters are located in Neuhausen, Switzerland.
RESUME
COUNTRY MANAGER (based in Georgia, FMCG) NATIONAL KEY ACCOUNT MANAGER (based in Kyiv, FMCG) MARKETING DIRECTOR (based in Kyiv, FMCG) COMMERCIAL REPRESENTATIVE (2 vacancies, based in Zurich & Frankfurt) HEAD OF REPRESENTATIVE OFFICE (distribution, based in Moscow) COMMERCIAL DIRECTOR (distribution, based in Moscow) EXECUTIVE DIRECTOR (production, based in Donetsk) STRATEGY DIRECTOR (production, based in Dnepropetrovsk) HR DIRECTOR (production, based in Dnepropetrovsk) HR DIRECTOR (IT, based in Kyiv) HEAD OF FINANCE, MANAGEMENT ACCOUNTING (commodities trading, based in Kyiv) HEAD OF TREASURY (production, based in Kyiv) TRADER (Oil) (oil trading, based in Kyiv) TRADER (Grain) (farming industry, based in Kyiv) TRADER (Coal) (coal industry, based in Kyiv) COMPLIANCE MANAGER (health and environment) (construction, based in Kyiv)
.#" XJUI UFDIOJDBM CBDLHSPVOE 'VMM TDPQF PG 4BMFT .BSLFUJOH ZFBST &YQFSJFODF JO '&" # #
4FOJPS NBOBHFNFOU FYQFSJFODF 4UBSU VQT %JTUSJCVUJPO OFUXPSL #SBOE MBVODIJOH 0&.
'MVFOU &OHMJTI . ,ZJW SFBEZ UP SFMPDBUF WBTZMDIFOLP!HNBJM DPN
Š Š 0MFH
1MBDF GPS ZPVS
.*/* 3&46.&
CPY 1SJDF
6")
WWW KYIVPOST COM
#LASSIFIEDS 23
June 3, 2011
4&37*$&
3&"- &45"5&
Driver and Kyiv guide Fluent English, nice car Knowledge of day and night Kyiv +38 050 357 87 91 Valentin (Val) You’ll enjoy your stay! http://welcometokiev.com.ua
English Interpretation, transfer and guide services Tel. (098)322-21-38 Iryna
Traditional Massage Professional & Curativehealing massage. tel.: +380 93-478-17-31 +380 96-552-41-95
6 Seater Van with experiencied driver. Trip to any place in EU,Ukraine and Russia. U.S.driver license Call Costa tel. +380 68 251 7034 2517034@ukr.net
Qualified interpretation and guide services, excursions. Tel. (044) 278-89-61 ' 0 3
PROFESSIOANL BUSINESS ASSISTANT. GUIDE. CALL ANY TIME NATALIA (36Y.O.,) +38-067-936-18-39
4 " &
3 & / 5
' 0 3 3 & / 5
#FTU CBSHBJO "EWFSUJTJOH JO UIF $MBTTJGJFET TFDUJPO
63(&/5 4"-& #: 08/&3
0''*$& 4503& /"6,* 45 TR N
"QBSUNFOU ",)."5070: 45 TR N 300.4 '6--: &26*11&% ,*5$)&/ 4"6/" #"5)300.4
"QBSUNFOU (0-04*:74," 45 TR N 300.4 #"5)300.4 4"6/" 1"3,*/( '6--: '63/*4)&%
0GGJDF GPS SFOU ;PMPUPVTUJWTLB 4US 1FSFNPIZ 4R I PGGJDF UI GMPPS TR N SPPNT VOGVSOJTIFE SFOPWBUFE BJS DPOEJUJPOJOH UFMFQIPOFT JOUFSOFU TJHOBMMJOH QFS NPOUI /P DPNJTTJPO Š Š Š Š Š Š 3FOU ,JFW BQBSUNFOUT 'VMMZ GVSOJTIFE BQBSUNFOUT JO UIF DFOUSF PG ,JFW $BCMF 57 *OUFSOFU DPOEJUJPO XXX SFOULJFW OFU (PPE QSJDF GPS HPPE DMJFOUT Š QFS EBZ
0SEFS BET JO UIF $MBTTJGJFET TFDUJPO "OE HFU UI BE '03 '3&&
Š Š
' 0 3 4 " &
Š Š
,
"QBSUNFOU ,071"," 45 TR N -"3(& -*7*/( 300. #&%300.4 #"5)300.4 '6--: '63/*4)&% 1"3,*/( 41"$&
,
Baseyna
' 0 3 3 & / 5
' 0 3 3 & / 5
' 0 3 3 & / 5
1 2
30 60
60 90
3
90
100
1 1 2 2 2 2
40 35 60 60 60 70
1200 1100 1500 1500 1500 1300
Prorizna
2 2 3 3
50 70 90 76
1600 2000 1800 1800
Mykhailivskiy lane Reytars’ka
3 3
75 120
3000 2500
Vetrova
4 4
146
4400
250
7000
Velyka Zhytomyrs’ka 5 Tereschenkivs’ka 5
170
3800
180
4500
Prorizna Mezhygirs’ka Kropyvnyts’kogo
Š Š 7ZBDIFTMBW
Š Š 7ZBDIFTMBW
' 0 3
1-"$& '03 :063 "% UFYU CPY TJ[F Ò ÉÉ QSJDF 6")
63(&/5 4"-& #: 08/&3
Velyka Zhytomyrs’ka
1SJWBUF IPVTF OFBS 1FDIFSTL 4DIPPM *OUFSOBUJPOBM N CFESPPNT GVSOJTIFE CBUISPPNT IVOESFET PG MBOE XFTUFSO TUBOEBSE 64% 5FM PS
XXX LJFWDJUZSFT DPN VB 4IFWDIFOLJWTLZJ EJTUSJDU IJTUPSJDBM DFOUFS PG ,ZJW WJFX PO 4PGJB $BUIFESBM 7*1 PGGJDF PG DMPTFE UZQF UPUBM BSFB TRN GVMMZ GVSOJTIFE JOUFSOFU GJSF BOE TFDVSJUZ BMBSN QBSLJOH QFS NPOUI UFM Š Š 3&"40/"#-& 3&/5 -BSHF NPEFSO XFMMŠGVSOJTIFE N CFESPPN PO UI GMPPS NFUSP 1P[OZBLJ NJOVUFT GSPN DFOUFS UFM
' 0 3 3 & / 5
' 0 3 3 & / 5
' 0 3 3 & / 5
"QBSUNFOUT GPS %BJMZ 3FOU JO ,JFW $PNGPSUBCMF MVYVSZ BQBSUNFOUT JO ,JFW DFOUFS GPS EBJMZ SFOU #FTU QSJDF (PPE EJTDPVOU 4UBOEBSU GSPN UP 7JQ Š
Š Š
Š Š XXX SFOUIPUFM LJFW VB 8FTUFSO TUBOEBSE BQBSUNFOU BU *OTUJUVUTLB 4USFFU SPPNT N OFX CVJMEJOH TFDVSJUZ DMPTF UP .BSJJOTLZ QBSL VOEFHSPVOE QBSLJOH CBUISPPNT 64% 5FM PS
XXX LJFWDJUZSFT DPN VB Š7 7MBEJNJSTLBZB 4US 5DBSTLJZ EPN FMFWBUPS QBSLJOH MPU ŠSPPN BQU N TUVEJP CFESPPN /FX EFTJHO GJSFQMBDF 57Š BJS DPOEJUJPOJOH XBUFS IFBUFS
"OESFZ
Prorizna Yaroslaviv Val Sofiyivs’ka Volos’ka
Zankovets’ka Lyuterans’ka Mezhygirs’ka
Kropivnitskogo
RENT OFFICE Kharkivs’ke Shosse
' 0 3 3 & / 5
2 150 1800
SPPN BQBUUNFOU OFYU UP ,POUSBLUPWB 1MPTDIB PO 7PMPTITLBZB TUS TR N XJUI FMFWBUPS GVMMZ GVSOJTIFE BOE FRVJQQFE CPJMFS *OUFSOFU TBUFMMJUF 57 QFS NPOUI "OBTUBTJKB
Offices in Podil (from 200 Đź2)
Kontraktova Ploshcha
300m to the nearest metro well-developed infrastructure underground parking lots access control system digital video monitoring Kontraktova Ploshcha
Class "Đ?", "B+"
Bo
ry so
gl
ib
s'k
aS
tr.
Ily in sk o og hn ac yd ga Sa tra Pe r. St
atytska Str. o-Khreshch Naberezhn
Dnipro river
aS tr.
8
Poshtova ploshca
8 Ilyinska Str., Kyiv
www.ILLINSKY.com.ua
tel. +380 44 462-52-46
SUBSCRIBE TO THE KYIV POST
41&$*"- 0''&3 Only $ * per month Limited time only! http://www.kyivpost.com/newspaper/subscribe
* at the fixed rate ($1=7.9 UAH), w/a full year subscription
To subscribe to the Kyiv Post: call Natalia Protasova: +380 44 234 6503 e-mail: subscribe@kyivpost.com
24 Lifestyle
www.kyivpost.com
June 3, 2011
Russia’s President Dmitry Medvedev visits an exhibition at Moscow House of Photography on March 24. (REUTERS/Dmitry Astakhov)
Hip galleries, cafes, clubs in Moscow 16 with friendly docents and lots of information offered clearly in English and Russian. The Moscow museums they’d known in the past were presided over by legions of stern women who expected visitors to show reverence rather than enthusiasm. Schoolmarm-style guides ruled with pointers, and the art, made long before anyone had heard of the word multimedia, came in a frame. “It was like something in New York,” Chris said, exclaiming over the new museum, surprised at what had managed to emerge between the mustiness of the past and the garishness of the first post-Soviet decade. Both understated and powerful, the museum was the inspiration of Olga Sviblova, who was once famously described by a British journalist as the most beautiful woman in Moscow. In the early post-Soviet years, she developed an interest in contemporary art, which was not favored with government interest or support. “It was a very complicated time in Russia,” she told me. “We had to think about the future, but it’s impossible to think about the future without understanding the past. At the same time, Russia had been a closed country, and we wanted to open it to the world.” Sviblova saw photography as a means to that end, as an art form but also a historical document, an intriguing pursuit in a country where Sovietera photographs were altered to fit changing views of reality, and history. Turned out she had a great eye, putting together an extensive collection and becoming a well-known creative force – she was the curator of the Russian pavilions at the Venice Biennale of Contemporary Art in 2007 and 2009. She originally put the word “house” in the museum’s name because she wanted to impart the sense of an open house. “I didn’t want the public to be the enemy,” she said. “I wanted to create something fresh, new, looking to the future.” It’s open until 9 p.m. If you work, she says, you can’t go to a museum if it closes at 6.
With photography, and the building’s constructivist look, the gallery evokes the last time Moscow was truly hip – the 1920s, when the city was the capital of the avant-garde, with artists like Alexander Rodchenko, a photographer and graphic designer of enduring influence, at work. The museum displays both the Russian and the international, with a series of photographs by Sergei Shestakov on display through May 29, documenting what Chornobyl looks like 25 years after the disaster. A photographic journey through the life of Mick Jagger has just been taken down. Through July 10, a variety of contemporary works from the Castello di Rivoli, a castle that’s home to contemporary art in Turin, Italy, will be seen. And – just for fun – there’s a nice collection of Russian 3-D postcards from the ‘70s. From the museum, it’s a short walk across the bridge behind the Cathedral of Christ the Savior to the former Red October Chocolate Factory, where Moscow has discovered the cool quotient of old brick and industrial spaces. The 19th-century warren of warehouses on Bolotny Island, in the middle of the Moscow River, teems with appealing galleries such as the Lumiere Brothers Photography Center, coffeehouses, restaurants – and the Strelka Institute for Media, Architecture and Design, where Rem Koolhaas is a visiting professor. The institute, which some of the city’s wealthy oligarchs opened last year to train students who might someday help the city adapt tastefully to the future, also houses Bar Strelka, one of the hot places in town for dining and drinking. The restaurant starts with breakfast – granola and Greek-style yogurt gives you an idea of its direction – and later in the day segues into burgers (on brioche) and a variety of meat, fish and vegetarian main courses. You can wander around for hours here – it’s an inviting place to walk in, which is unusual for Moscow, where most walking is for transportation, not enjoyment. Same for Winzavod, a former winery near the Kursky train station
that has some big-name contemporary galleries, including Aidan, Guelman and Regina, on its 215,000-square-foot grounds. At the Australian Cara & Co., which calls itself a concept store selling intellectual fashion, you can drink coffee on the mezzanine and watch as the beautiful people below choose among $600 sunglasses and $500 Robert Clergerie footwear (some on sale, a helpful saleswoman told me). Across the way, Gallery Baboushka is more affordable, selling felt necklaces for $22 and passport covers for $10.
The former Red October chocolate factory now hosts a swath of chic galleries and boutiques Things don’t really get going at Winzavod until afternoon, and the place has more energy on the weekends. If you have time midweek, go to the Garage Center for Contemporary Culture, where I have waited in line on the sidewalk to get in on weekends but prefer the quieter weekdays. The Garage is one of my favorite places in Moscow, a vast space designed in 1926 by Konstantin Melnikov, a constructivist architect who was making a bus garage, but a beautiful one, where the buses could swan in and out without having to back out. Daria Zhukova, girlfriend of the fabulously wealthy oligarch Roman Abramovich, opened it as a cultural center in 2008, and I found myself spending a good part of a recent day there, and half the night, fortified by a marvelous blue cheese and pesto pizza from the up-to-the-minute Garage Cafe.
French billionaire businessman and art collector Francois Pinault (L) stands near the giant skull sculpture “Very Hungry God” by Subodh Gupta in 2009. The exhibition at the “Garage” gallery is run by Daria Zhukova, the girlfriend of Russian billionaire oligarch Roman Abramovich. (AFP Photo/Yuri Kadobnov)
(This in a town where slices of pork fat are more traditional.) The Garage was open all night that Saturday so that fans of Christian Marclay’s video “The Clock” could indulge their addiction for 24 hours. Alas, “The Clock” has moved on, but the time it spent here was memorable. Marclay, an American visual artist living in England, edited together clips from thousands of movies that mention or suggest time. His video runs for 24 hours, all in real time. If a scene from “3:10 to Yuma” flashes onto the screen, the watch on your wrist will say it’s 3:10. “The Clock” is mesmerizing on many different levels. Even though time is constantly before you on the screen – someone looking at a ticking clock or meeting under gonging Big Ben or rushing beneath a grand railway station clock – you’re not aware of its passage, and it’s possible to sit for hours, engrossed, waiting for what the next moment will bring. Until June 5, the Garage has “New York Minute,” an exhibition of the work of 50 youthful American artists curated by Kathy Grayson, who grew up in Washington and now operates a gallery called The Hole in New York. On opening day in April, performance artist Terence Koh wandered through Red Square, covered in a blood-red tarp, his hands and feet painted red, and carrying red flowers. Police quickly materialized and informed him that such dress is not permitted in Moscow, where the squares remain resolutely, well, square. Back at the Garage, with “New York Minute” celebrating the just-off-thestreet energy of that city, Koh found a more appreciative audience. There, visitors were greeted by a New York police car hanging upside down from the ceiling, with a blackened disco ball attached (the work of Spencer Sweeney), columnlike rows of giant cast rubber bands (Martha Friedman) and paintings made out of chewing gum (Dan Colen.) The Americans loved the Garage, and its progressive air gave them
trouble figuring out the city around it. Grayson was transfixed by the dissonance between the former and the current Moscow. At the Pushkin Museum, the city’s largest and home to famous van Goghs and Picassos, she found peeling wallpaper and awkwardly hung works. But in a store near the Garage, she saw children’s birthday cards emblazoned with expensive cars or pictures of money, reflecting the modern get-rich culture. “Not one had a birthday cake or a puppy,” she said. Moscow takes some work, said Rafael de Cardenas, an architect and former Calvin Klein designer who designed the “New York Minute” exhibition. You have to know where to go and dig a little to get at the good stuff, he said. (Friends filled the Americans in, and some later found themselves at the chichi club owned by Russian designer Denis Simachev, in a clubby neighborhood that also features Club Gogol.) Jim Drain, who along with Ara Peterson made brightly painted foam pinwheels for the exhibition, called it a weird Faberge egg of a place – with well-concealed secrets inside. Barry McGee, a California graffiti writer who has crossed over into fine art, had wandered into the State Polytechnical Museum in a century-old building crammed with about 175,000 objects, including old televisions, computers and other objects. When he told me that they were displayed with a westill-have-some-secrets-here-air, I knew I had to visit. Don’t miss the row of spark plugs in the auto section. (My husband stared a long time at the aircraft and automobile engines, and he greatly admired the 1915 orange motorcycle from Indian Motorcycle in Springfield, Mass.) My favorite was the cafe, with its Soviet-era clock and selection of beet salads, but I also lingered over the telephone room, with its 1904 Moscow switchboard, 1980 fax (a controlled substance in that era) and relatively recent cellphones. Put it on your list, I say. After all, what’s hipper than irony?