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vol. 15, issue 36
September 3, 2010
Is She Next?
Yulia Tymoshenko ally Oleksandr Turchynov says sources tell him he will soon be arrested.
President Viktor Yanukovych’s administration says law enforcers are finally cracking down on corruption. But the main targets are people close to former Prime Minister Yulia Tymoshenko, who claims political persecution. She will lead an opposition rally on Sept. 7 outside of parliament. See related story on page 13.
Target?
Wanted
Fugitive former Economy Minister Bohdan Danylyshyn is wanted on corruption charges.
Jailed Former deputy head of state-owned Naftogaz Ihor Didenko has been jailed since July 12 on suspicion of corruption.
Jailed Former customs chief Anatoly Makarenko has been jailed since June 24.
(AFP)
Several Tymoshenko allies in jail, wanted or facing criminal probes BY S V I T L A N A T U C HYN S KA TUCHYNSKA@KYIVPOST.COM
Several former high-ranking officials under ex-Prime Minister Yulia Tymoshenko, this year’s losing presidential candidate, are either behind bars or on the run. And now many in the embattled opposition are wondering who will be next. President Viktor Yanukovych and top officials say the sudden legal troubles of Tymoshenko associates are not politically motivated.
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On a trip to Berlin this week, Yanukovych – who beat Tymoshenko by 3.5 percentage points in the Feb. 7 election – said he is fighting corruption and restoring order in the country. Presidential administration head Serhiy Lyovochkin on Sept. 1 said the government is “ensuring justice in the nation. The president has given us a clear instruction that we have to build a fair society.” But others smell a witch hunt. “The State Security Service and the police are executing political orders from the government,” Æ13
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See top stories inside: • Yanukovych visits China. Page 2. • Real estate section in Business Focus. Pages 8-10. • Privatization revenues lag in non-transparent sales despite growing state debt. Page 12. • Mystery of missing Kharkiv editor deepens. Page 14. • Reporters Without Borders criticizes attacks on press freedom. Page 15.
Fugitive former minister: ‘I’m not afraid of anything’ BY Y U R I Y O N YSH K I V ONYSHKIV@KYIVPOST.COM
If and when he returns to Ukraine, former Economy Minister Bohdan Danylyshyn stands a strong chance of landing behind bars. With a criminal case hanging around his neck, he is in line to become the next in a growing list of officials who served in former Prime Minister Yulia Tymoshenko’s government to be jailed since her rival, President Viktor Yanukovych, took power on Feb. 25.
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Ukraine’s general prosecutor launched a criminal case against Danylyshyn last month, implicating him in alleged fraud that occurred through the notoriously corrupt State Procurement Service. This government agency awards lucrative contracts with private and state enterprises to supply goods and services to budget-funded organizations – everything from schools and hospitals to the government itself. Unable to find Danylyshyn in Ukraine, authorities put in a request to Interpol, the international police organiza- Æ11
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September 3, 2010
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Kyiv will host two trade shows starting Sept. 8 while a third one will take place in Poltava on the same day. The Energy Home Trade Fair will kick off in Poltava’s Palace of Culture Exhibition Hall and is devoted to showcasing energy-saving building technology, machinery and building materials. Meanwhile, Kyiv's Expocenter of Ukraine, 1 Glushkova Ave., will host a fast food show as well as a beer and soft drinks exhibition. The latest products and technologies will be showcased.
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Parliament reconvenes on Sept. 7, ahead of Oct. 31 local elections
Ukrainian President Viktor Yanukovych, (R) walks with Chinese counterpart Hu Jintao as they inspect an honor guard during a welcoming ceremony at the Great Hall of the People in Beijing, China on Sept. 2. (AP)
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Yanukovych makes first presidential visit to China since Kuchma in 2003 President Viktor Yanukovych started a four-day state visit to China on Sept. 2 to discuss bilateral relations, the first time since 2003 -- when Leonid Kuchma was in power -- that a Ukrainian president has visited the emerging superpower. Aside from meeting with China’s President Hu Jintao, Yanukovych will also make a stopover in Hong Kong on Sept. 4 where he is scheduled to meet local business leaders and will visit the Hong Kong stock exchange. Yanukovych and his Chinese counterpart endorsed a number of projects worth $4 billion on Sept. 2, paving the way for deeper ties, according the president’s press service. "This is very important for our nations. The prospect of developing strategic relations between Ukraine and China is only a question of very little time,” Yanukovych said. Bilateral trade between the two countries was $5.7 billion in 2009. The meeting comes after a Ukrainian government delegation visited Beijing late in August on a trade and economic trade mission. China has been involved in infrastructure projects in Ukraine leading up to the Euro 2012 soccer tournament and has expressed interest to invest in science, aerospace and agriculture. Oleksiy Plotnikov, head of Verkhovna Rada subcommittee for foreign economic development, said three Chinesebacked investment projects involving key sectors of the Ukrainian economy are finally in the works. “Finally cooperation…involving Chinese investment are kicking off involving construction of roads, railway
and expansion of Kyiv’s metro. We expect them to start in the nearest future,” Plotnikov said. The most promising areas for bilateral cooperation include infrastructure, trade and investment, aviation, railway transportation, energy, tourism, cultural exchange and education, Yanukovych said in a recent interview with Chinese media. On the global stage, Ukraine is willing to enhance its coordination with China to overcome the consequences of the financial crisis, promote the recovery of the world economy and counter the challenges brought by climate change, China’s People Daily reported. Yanukovych said more than 60 percent of Ukraine’s products are for export, but have little added value. China, which has used a lot of advanced technologies in developing its economy, can help Ukraine process raw materials through these technologies to increase the added-value of the products. Although the two nations have had diplomatic ties since 1992, Ukraine-China trade relations only started to intensify in 2008 when former Prime Minister Yulia Tymoshenko stepped up talks with a visiting Chinese delegation. But China has re-engaged Ukraine after Yanukovych came to power on Feb. 25. China has more than 1.3 billion people and the world’s second largest economy but remains governed by a Communist Party that doesn’t tolerate dissent. “China considers Ukraine an extremely important partner,” acting China Ambassador to Ukraine, Zhang Wei Li said in May.
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After a summer lull, Ukraine’s parliament will reconvene on Sept. 7. Lawmakers will consider whether to give the Kyiv city council the right to eliminate elected district councils in the city. According to first deputy mayor Olexandr Popov, the council wants to save money spent on the 10 district councils. However, critics see the initiative as an attempt by the ruling Party of Regions to grab power in Kyiv, as the amendment would also give the president the right to appoint heads of Kyiv district administrations. However, parliament did hold several extraordinary sessions during the summer to pass legislation. Deputies met as recently as Aug. 30 when they voted to allow new political parties – even those that registered less than a year ago – to nominate candidates, a move seen to make the
upcoming Oct. 31 local elections more democratic. The idea, pitched by Party of Regions member Oleksandr Yefremov, won the support of 264 members in the 450-seat legislature on Aug. 30. The vote scraps a restriction – criticized as an undemocratic preservation of the status quo – that allowed participation of political parties that had been registered at least one year before the election. The provision would have kept many up-and-coming politicians from participating, such as Deputy Prime Minister Sergiy Tigipko, leader of the Strong Ukraine Party, who finished third in the presidential elections this year. Also frozen out would have been Front Zmin leader Arseniy Yatsenyuk, who finished fourth in the presidential balloting, ahead of ex-President Viktor Yushchenko.
Verkhovna Rada members listen to the national anthem during ceremonial session to commemorate the 20th anniversary of the adoption of the Declaration of Ukraine’s National Sovereignty on July 16. (Ukrainian Photo) Compiled by Mark Rachkevych
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September 3, 2010 Advertisement
European Business Association News
,EADERS 4ALK
Leaders Talk: Taxation. Anna Derevyanko, the European Business Association
4
HE SECOND HEARING OF THE 4AX #ODE NEARING THE %"! IS ADDRESSING THE GOVERNMENT TO ACCEPT THE REASONABLE CHANGES TO THE 4AX #ODE AND REDUCE THE PRESSURE ON LEGAL BUSINESS 4HE TAX TURMOIL WHICH HAS KEPT ATTENTION OF NOT JUST 5KRAINIAN BUSINESS COMMUNITY BUT 5KRAINIAN SOCIETY AS A WHOLE IS FAR FROM BEING OVER "USINESSES HAVE BEEN GIVEN A SIGN THAT THE GOVERNMENT WAS READY TO HEAR THE VOICE OF REASON AND COOPERATE AND BECAME VERY ACTIVELY INVOLVED IN BETTERING THE NEW 4AX #ODE TO MAKE IT ACCEPTABLE FOR ALL 3TRIKING THE BALANCE BETWEEN THE NECESSITY TO COLLECT REVENUE AND ENCOURAGE INNOVATION AND BUSINESS GROWTH HAS PROVED REALLY HARD FOR THE STAKEHOLDERS .UMEROUS WORKING MEETINGS COORDINATION TALKS AND CORRECTIONS HAVE REMOVED THE MOST OBVIOUS OUTRAGEOUS FLAWS IN THE NEW DOCUMENT STILL LOTS OF WORK NEEDS TO BE DONE TO MAKE THIS INSTRUMENT WORKABLE 4HE %"! EXECUTIVE DIRECTOR !NNA $EREVYANKO EXPLAINS WHAT THE CHANGES HAVE BEEN DEVELOPED BY THE BUSINESS COMMUNITY TO MAKE THE #ODE AN EFFECTIVE INSTRUMENT
4HE EXISTING DRAFT OF THE 4AX #ODE IS LIKELY TO HIT HARD NOT ONLY UPON LARGE COMPANIES BUT SMALLER COMPANIES AND PRIVATE ENTREPRENEURS AS WELL $RASTIC CHANGES TO THE SIMPLIFIED TAXATION SYSTEM REMOVING CERTAIN TYPES OF ECONOMIC ACTIVITIES ESPECIALLY THOSE WHICH FOSTER ECONOMIC COMPETITIVENESS OF 5KRAINE LIKE )4 WITH PRACTICALLY NO TRANSITION PERIOD WILL LEAVE LOTlS OF COMPANIES STRANDED AND WILL NOT SERVE ITS PUR POSE p ELIMINATING TAX AVOIDANCE SCHEMES "ESIDES A NUMBER OF OTHER COMMENTS WERE TARGETED AT SUBSIDIS ING AGRICULTURAL SECTOR AND MANY MORE (OW MANY COMPANIES WERE INVOLVED IN THE PROCESS 4HE RESPONSE WAS MASSIVE AND IMMEDIATE 7E RECEIVED A LOT OF COMMENTS AND OVER COMPANIES ARE INVOLVED INTO THE PROCESS OF PREPARATION OF COMMENTS ON REGULAR BASIS /N TOTAL WE HAVE PRO VIDED PAGES OF COMMENTS TO THE DRAFT DOCUMENT 5NFORTUNATELY WE FEEL THAT IF THE GOVERNMENT PUSHES FORWARD THE CURRENT DRAFT THE VOICE OF BUSINESS COM MUNITY CAN BE OVERHEARD THIS TIME DESPITE REPEATED REASSURANCE OF THE OPPOSITE
7HAT LIKELIHOOD IS THAT THE GOVERNMENT WILL FINALLY LISTEN TO THE VOICE OF REASON AND CONSIDER ACCEPTING THE PROPOSED CHANGES &ROM THE FIRST DAYS OF THE NEW 0RESIDENT IN OFFICE !..! WE HAVE BEEN HEARING THAT FEEDBACK FROM BUSINESS $EREVYANKO IS WELCOME )T HAS BEEN A VERY POSITIVE TREND AND WE ALWAYS ARE READY TO COOPERATE 4HE %"! HOPES THAT THE %UROPEAN DESPITE CONSTANT SHORTAGE OF TIME THE -INISTRY OF "USINESS &INANCE THE 0RIME -INISTER OF 5KRAINE AND RESPEC !SSOCIATION TIVE TAX AUTHORITIES WILL PUT THEIR BEST FOOT FORWARD AND ACCEPT CHANGES OFFERED TO THEM 4HIS WILL CON TRIBUTE TO BUILDING OF A MODERN AND FAIR FISCAL POLICY #AN YOU TELL US HOW THE WORK ON THE COMMENTS ENSURE STABILITY OF TAXATION AND EQUAL RIGHTS BETWEEN TO THE DRAFT 4AX #ODE WAS DONE TAXPAYERS AND FISCAL ORGANS &ROM THE MOMENT THAT WE GOT TO KNOW THAT THE 7E ASKED %"! MEMBER COMPANIES TO GIVE FIRST DRAFT WAS RELEASED AND TO THE VERY LAST DAY THEIR OPINION ON THE SITUATION WITH 6!4 BONDS THE %"! HAS BEEN PERUSING IT AND TRYING TO SYS 4ARAS 9URINTS #OMPANY $IRECTOR 'ULDMAN TEMATICALLY PROVIDE FEEDBACK AND COMMENTARIES TO THE RESPECTIVE AUTHORITIES 7ORKING GROUP WITHIN 5KRAINE THE %"! THE CORE OF WHICH BEING THE %"! 4AX ƒ)N %UROPEAN COUNTRIES WHERE 6!4 IS REFUNDED #OMMITTEE CHAIRED BY 6LADIMIR +OTENKO OF %RNST AUTOMATICALLY THE QUESTION OF NON REIMBURSEMENT OF 9OUNG WAS COLLECTING FEEDBACK FROM MEMBER 6!4 IS NOT ON THE AGENDA &OR FOREIGN INVESTORS SUCH COMPANIES LARGE FOREIGN INVESTORS AND DOMESTIC PROBLEMS ARE BEYOND THEIR UNDERSTANDING COMPANIES PROCESSING THE FEEDBACK AND PROVIDING %MISSION OF 6!4 BONDS HAS BEEN A POSITIVE STEP WELL GROUNDED COMMENTS DURING WORKING MEETING FROM GOVERNMENTlS SIDE BECAUSE IT SOLVED THE PROBLEM WITH THE $EPUTY 0RIME -INISTER AND OTHER 7E OF STATE INDEBTEDNESS INCURRED BEFORE -AY WERE PLEASED TO ACKNOWLEDGE THAT -R 4IHIPKO 3TILL THERElS NO AUTOMATIC 6!4 REFUND CURRENTLY TAKES CONCERNS OF THE BUSINESS AND HOME ECONOMY 3ERGEY 'ORNITSKY $IRECTOR $0 m,VIVTEKSn SERIOUSLY AND INVOLVES THE %"! INTO ONGOING DIS $ANISH COMPANY OF ƒ'REEN #OTTON“ CUSSION OF THE NEW DRAFT &OR $0 ƒ,VIVTEKS“ AS AN ENTERPRISE INVOLVED IN 7HAT WERE THE MAJOR DRAWBACKS BUSINESS PROCESSING OF GIVE AND TAKE RAW MATERIALS 6!4 WAS CRITICISING 7HICH PROVISIONS STILL BADLY REFUND IS CRUCIAL 5NFORTUNATELY THE STATE REFUSES NEED AMENDMENT TO REFUND CLAIMED SUMS OF 6!4 AND AT TIMES EVEN 4HE MAIN POINT OF CONCERN FOR THE BUSINESS COM AGGRESSIVELY ACTS TO REDUCE THE AMOUNT OF 6!4 TO MUNITY WAS ESTABLISHING CLEAR AND BALANCED RIGHTS BE REFUNDED WHICH IS CLAIMED BY THE TAXPAYER $0 AND FUNCTIONS OF FISCAL AUTHORITIES AND TAXPAYERS m,VIVTEKSn OVER THE LAST SIX MONTHS HAS RECEIVED TAX IN PARTS OF CONDUCTING TAX REVISIONS APPLICATION OF NOTIFICATIONS WHICH REDUCED 6!4 REFUND BY MORE ADMINISTRATIVE MEASURES AND PROCESSING OF DOCU THAN 5!( MENTS !UTHORITY OF TAX ADMINISTRATION BODIES HAVE /LEH 9ANITSKY #OMPANY $IRECTOR 3IKA BEEN FORMULATED IN A VERY BROAD MANNER ENABLING THEM TO EXERCISE ALMOST UNLIMITED POWER AND THUS &OOTWEAR ƒ/N THE ONE HAND 6!4 BONDS SOLVED THE PROBLEM PARALYZE THE ECONOMIC OPERATIONS OF TAXPAYERS 4HE %"! ADVOCATES FOR THE RIGHTS AND DUTIES OF FIS OF 6!4 REFUND AS OF -AY ON THE OTHER HAND CAL BODIES AND TAXPAYERS BE BALANCED CLEARLY ARTIC COMPANIES SUFFERED HUGE LOSSES DURING CRISIS DUE TO ULATED AND WELL DEFINED 0ROVISIONS ON TAXATION OF THE FIXED DISCOUNT YIELD 4HIS AFFECTED COMPA NON RESIDENTS AND TAXATION OF TRANSACTION IN FOREIGN NIESl PROFITABILITY TO A GREAT EXTENT #URRENTLY WE HAVE NO INFORMATION REGARDING 6!4 CURRENCY ARE ANOTHER CONCERN !MENDMENTS HAVE TO BE MADE TO AVOID DOUBLE TAXATION AND CONFLICT OF REFUND 4HIS COMPLETE SILENCE TELLS US THAT DECLARA INTERESTS AND ESTABLISH EQUAL APPROACH TO TAXATION TION OF AUTOMATIC 6!4 REFUND REMAINS JUST MERE DECLARATIONS OF RESIDENTS AND NON RESIDENTS
4HINGS TO KNOW EU-funded Project Advances EU-Ukraine Cooperation in Space An EU-funded project, the: “Joint Support Office for Enhancing Ukraine’s Integration into the European Research Area (JSO-ERA)� and the “National Information Point� (NIP) for EU-Ukraine Cooperation on Science and Technology, together with the National Space Agency of Ukraine will hold a joint Information Day on EU-Ukrainian space industry cooperation. Ukraine has a major space industry and many opportunities exist within the framework of the EU’s 7th Framework Programme (FP7). During the two-day event, EU and Ukrainian experts knowledgeable about FP7 rules, procedures and good practice will share their experience with research organisations which are keen to participate or intensify their participation in FP7. The Information Day will be held September 2-3, 2010 in the Conference Hall of the Yevpatoriya Centre of the National Space Agency of Ukraine. (Crimea) For more information, please contact: Ms. Tatiana Derevyankina, Communication Expert, JSO-ERA Project, by tel./fax: (+38044) 2891315 or e-mail: jso@jsoresearch.kiev.ua
www.eba.com.ua
*O 'PDVT Government Drafts New Air Code 5IF &#" IBT CFFO BDUJWFMZ JOWPMWFE JO UIF ESBGUJOH PG B OFX %SBGU "JS $PEF TJODF UIF FOE PG *OJUJBMMZ BO &#" UFBN BMPOH XJUI &#" 5SBWFM BOE 5PVSJTN &YFDVUJWFT IFME B NFFUJOH XJUI UIF 1BSMJBNFOUBSZ $PNNJUUFF PO 5SBOTQPSU BOE $POOFDUJPO 'PMMPXJOH UIJT NFFUJOH B XPSLJOH HSPVQ XBT DSFBUFE UP GPDVT PO UIJT JTTVF XJUIJO UIF 1BSMJBNFOU PG 6LSBJOF 5IJT XPSL† JOH HSPVQ DSFBUFE B %SBGU "JS $PEF BOE UIJT DPEF XBT TVCNJUUFE GPS SFWJFX CZ UIF &#" NFNCFST 'PMMPXJOH B OVNCFS PG DPNNFOUT TVHHFTUJPOT BOE DIBOHFT † BO BHSFFE WFSTJPO PG UIF DPEF XBT JOUSPEVDFE UP 1BSMJBNFOU )PXFWFS UIF ESBGU XBT RVJDLMZ XJUIESBXO BT B SFTVMU PG UIF DIBOHF PG HPWFSONFOU JO 6LSBJOF
Sergii Grytsenko, Aircraft Contracts Leading Legal Counsel for Ukraine International Airlines added that
â€œâ€Śmany provisions in the existing code/legislation come from a period when Ukraine didn’t have own experience in aviation. Now the requirements of the aviation industry (re safety, environment etc.) are much-much higher than they were 17 years ago. The whole idea of the new code is supported by airlines but some of the provisions have really bad implications for industry, airlines and passengers. For example the new stupid fines (Article 130).â€?
PODF BHBJO SFBEZ UP TFOE JU DPNNFOUT BOE QSPWJEF GFFECBDL 5IF TFDPOE WFSTJPO PG UIF %SBGU IBT CFFO Liliia Zadorozhna, QSFQBSFE CZ UIF $BCJOFU PG .JOJTUFST PG 6LSBJOF BOE of ARKTUR, a local tour operator explained what it XJUI JOQVU GSPN 6LSBJOJBO *OUFSOBUJPOBM "JSMJOFT BOE means for the industry "FSPTWJU UIF &#" JT QSFQBSJOH SFDPNNFOEBUJPOT PO BMM QBSUT PG UIF %SBGU -BX 5IFTF JODMVEF “The Draft Air code is required for the coordina† %FGJOJUJPO PG UFSNT tion and regulation of Aviation industry, It needs to be updated and corrected annually due to the † "DUJPO PG UIF -BX fast growing nature of the aviation industry and † 4VCPSEJOBUJPO BOE SFTQPOTJCJMJUJFT PG TUBUF because of rapid technological progress. As a BVUIPSJUJFT tour agency we are interested in the legislative † $FSUJGJDBUJPO legalization of the e-tickets as an account docu† %VUJFT BOE SFTQPOTJCJMJUJFT PG DSFX NFNCFST ment. Unfortunately I was not able to take part in the process of drafting the code; however, I think † -JDFOTJOH more Travel and Tourism representatives should † 1SJDF QPMJDZ take part in the negotiation process. The drafting † -VHHBHF SVMFT process for the new code should open to input 5IF PGGJDJBM WFSTJPO PG UIF %SBGU "JS $PEF NBZ from authorized industry personnel persons.“ CF GPVOE PO UIF PGGJDJBM XFCTJUF PG UIF .JOJTUSZ PG 5SBOTQPSU BOE $PNNVOJDBUJPOT BOE TIPVME BOZ "T UIF .JOJTUSZ PG 5SBOTQPSU BOE $PNNVOJDBUJPOT DPNQBOJFT XJTI UP DPNNFOU XF FODPVSBHF UIFN UP IBT OPX EFWFMPQFE B OFX %SBGU "JS $PEF UIF &#" JT DPOUBDU UIF &#"
2%')/.!,.EWS New Airport Terminal opens in Kharkiv 28.8.2010. President Victor Yanukovych was guest of honour on Saturday to mark the opening of the new International Air Terminal in Kharkiv. The new terminal, opened on Ukrainian Aviation day, has the capacity to handle two million passengers a year and is a major milestone in Ukraine’s preparations for the Euro-2012 Football Championships.
Whilst acknowledging that Ukraine still has much to do to prepare for the games, the President welcomed this as a positive step and was keen to stress the importance of the competition to Ukraine and the investment opportunities which it presents both in Kharkiv and across Eastern Ukraine. “To have a stream of investments in Ukraine's economy we have to work hard to create comfortable conditions for investors not just ahead of Euro-2012 but for further strategic projects as well" he said. UEFA Euro-2012 director Martin Kallen and Ukrainian tournament director Markiian Lubkivskyi joined the celebrations along with a number of local dignitaries and aviation industry representatives. Guests were invited on a tour of the new terminal on Saturday and in the evening citizens of Kharkiv helped celebrations with an open-air pop concert in the city. A new International terminal (Terminal D) is currently under construction at Kyiv Borispol Airport and should be completed prior to the Championships in 2012.
Lviv: New Campaign Supports Local Producers "Buy Lviv Products!" On 26th of August in Lviv, Shops and Supermarkets began a new campaign to encourage consumers to support local producers and the local economy. During the campaign, tags and stickers will be placed next to price tags with a lion logo and the words "Buy Lviv Products!�. Supermarkets will support the campaign by displaying banners with the same logo.
The campaign was announced by Lviv Mayor Andriy Sadovyy during a press briefing on 26th of August, and Head of economic development for Lviv city council Victoria Dovzhyk explained that a comprehensive strategy has been designed to support local producers. The strategy is based on tripartite cooperation between the trade network, local producers and the City Council. Along with the "Buy Lviv Products!� stickers Supermarkets have also promised to reserve the best shelves for local products. The first supermarket to join the promotion was Rukavychka, which gave priority to Lviv producers. General Director of Lvivholod, Bogdan Kozak said that between 20-25% of products which are sold in Rukavychka are produced in Lviv. Their goal is to increase this percent to 40-50%. According to him, products made in Lviv are both high quality and have lower costs because of savings in logistics. These savings are then passed on to consumers. According to Mr Kozak, the Lviv region only has a shortage of light industry and this sector is usually filled with products produced in China. Mr Kozak believes that campaigns such as "Buy Lviv Products!" will encourage Lviv enterpreneurs to upgrade their production. "If the Lion logo becomes recognizable, it will also serve as an advertisement for local manufacturers. We encourage them to use the logo on their products and in their advertising. Then our lion is going to be everywhere" - said Mrs. Dovzhyk. The logo “Buy Lviv Produts!� has been improved a number of times over the past two years and the lion is now wearing a traditional Vyshyvanka. As a part of the campaign Lviv city council has created a promotional product catalogue which lists Lviv enterprises and holds an annual fair/exhibition for Lviv manufacturers.
Odesa celebrates its 216th Birthday On Thursday 2 September, Odessa officially celebrated its 216th Birthday and to mark the occasion a number of events and concerts were held across the city. The program of events spanned 16 days between August 26 and September 10 and included a Rock Festival, Festival of Polish and Japanese cinema, jazz and organ music, an International Chess Competition and many photo exhibitions. The events will conclude with the opening of a new photography exhibition: “Odesa City Day 2010. Epilogue�.
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September 3, 2010
Editorials
School blues
“I don’t get it. There is no money for toilet paper, but plenty of it to pay for the president’s two planes to fly to Germany.”
The first day of school on Sept. 1 saw the government postpone its regular weekly meeting in order to attend traditional opening ceremonies. But rather than expounding a strategic vision for educational improvement during their official visits, we heard only sugary sweet words about childhood and the need to improve the system. Even more worryingly, the government is using schools in Soviet fashion to promote its political agenda. Education Minister Dmytro Tabachnyk said this week he didn’t have a problem with an initiative, suggested by Crimea’s education minister, to give a lesson on President Viktor Yanukovych’s amorphous political election plan for the country, titled “Ukraine For People,” to most senior classes. Text books for fifth-graders have been rewritten to exclude the 2004 Orange Revolution, an embarrassing moment for the current authorities, many of whom are targets of accusations for falsifying the election results in the infamous Nov. 26, 2004, contest between Yanukovych and Viktor Yushchenko. The textbooks also downplay in Ukrainian history the role of the Ukrainian Insurgent Army’s fight against the Soviet Union and Nazi Germany. The textbook’s author said the Education Ministry has instructed the material to be rewritten in such a way that Russia appeared less aggressive. One change that has already been pushed through – reducing the length of study from 12 to 11 years – has caused problems, as textbooks for the final three years are not ready in time for the new school year. In fact, they might not be ready until November, according to various news reports. Critics say the move takes Ukraine away from the European system and toward the Russian one. Tabachnyk replaced independent external examinations as part of university entrance tests with school certificates. Experts say this opens the door to increased corruption, due to the widespread practice of bribing teachers for high marks. Corruption also remains in universities, where students still bribe to gain entry. Leading government officials have said the education system needs many improvements, but they have largely been silent on how to fight corruption and raise academic standards. The current authorities say they want to create a country of intelligent, competitive citizens. But so far, the only changes seem set to mold them into proRussian, government-supporting and corrupt young people. Perhaps they don’t want people to be smart enough to challenge their policies.
Faking it Any alleged criminal activity by politicians should be investigated. However, the decision to investigate close allies of ex-Prime Minister Yulia Tymoshenko – but not anyone close to President Viktor Yanukovych – is an abuse of power intended to weaken political opponents. Any corruption accusations involving high-ranking officials, such as those against former Economy Minister Bohdan Danylyshyn, should be taken seriously. Leading politicians have long accused each other of corruption, but no major cases have ever reached trial and the stench of corrupt practices remains. On most occasions, the accusations have gone no further than loud words on television talk shows, with no proof offered to back them up. A credible investigation of all such allegations, where there is sufficient evidence to warrant it, would be welcome and send a strong signal that the government is serious about fighting one of the major problems that blights the country. Instead, the authorities are using the general prosecutor’s office as a political weapon to hamstring the opposition. Tymoshenko allies are in jail as prosecutors investigate their alleged crimes, while alleged wrongdoing by the Yanukovych gang gets no attention. This is all part of a sordid trend aimed at shutting out Tymoshenko by, for example, cutting her and her supporters off the airwaves. For law enforcers to even start making a claim that they are professionally rather than politically motivated, investigations could start looking into the caught-on-tape allegations against First Deputy Prime Minister Andriy Klyuyev by Deputy Prime Minister Borys Kolesnykov. On Aug. 27, Kolesnykov accused Klyuyev of having a road resurfaced to his house, stopping short of the village of Obukhiv. Klyuyev denied this was true. But here’s a perfect example of alleged abuse of state power in the name of personal interests – straight from the mouth of a deputy prime minister! We could also ask for a real probe into the shady transfer of the Mezhyhirya mansion to Yanukovych or the ongoing suspiciously cheap sales of state assets or dozens of other serious alleged crimes dating back decades. Former President Viktor Yushchenko killed his political career by failing to make good on his promise to “put bandits in jail” when he came to power in 2005 after the Orange Revolution. Perhaps Yanukovych’s slogan could be: “Put bandits in jail, but only if they are members of the opposition.”
Mohammad Zahoor, Publisher Jim Phillipoff, Chief Executive Officer Brian Bonner, Chief Editor Deputy Chief Editors: Andrey Chernikov, Roman Olearchyk Editors: Alexey Bondarev, Katya Gorchinskaya, Valeriya Kolisnyk, James Marson, Yuliya Popova Staff Writers: Tetyana Boychenko, Peter Byrne, Oksana Faryna, Natalia A. Feduschak, Olga Gnativ, Kateryna Grushenko, Nataliya Horban, John Marone, Olesia Oleshko, Yura Onyshkiv, Iryna Prymachyk, Mark Rachkevych, Nataliya Solovonyuk, Graham Stack, Maria Shamota, Svitlana Tuchynska Photographer: Oleksiy Boyko. Photo Editor: Yaroslav Debelyi Chief Designer: Vladyslav Zakharenko. Designer: Angela Palchevskaya Marketing: Iuliia Lysa Web Project: Nikolay Polovinkin, Yuri Voronkov Sales department: Yuriy Timonin, Yulia Kovalenko, Maria Kozachenko, Elena Symonenko, Sergiy Volobayev Nataliia Protasova, Subscription Manager Svitlana Kolesnykova, Newsroom Manager Anastasia Forina, Office Manager
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NEWS ITEM: Bloc of Yulia Tymoshenko parliamentarian Volodymyr Bondarenko said on Aug. 31 that the Verhovna Rada is failing to provide the 450 lawmakers with some of the most basic items, such as toilet paper. “There used to be toilet paper in lavatories. But now it’s never there. There used to be special boxes with napkins to dry your hands after washing. But now you never find them,” Bondarenko said. He added that the repairs that took place in the Rada over the summer could not have possibly cost the Hr 35 million set aside by the state budget. At the same time, the president’s administration seems to have no budget shortages. On a recent visit to Germany, the president’s delegation was so numerous that two planes had to be flown at state expense. (Drawing by Anatoliy Petrovich Vasilenko)
Even Azarov now admits Ukraine got a lousy gas deal ED WA RD CH OW
Hallmarks of a modern economy and of European energy sector reform include promoting market competition through unbundling of services controlled by monopoly energy providers and enacting transparent regulation where this is not possible or desired. Lately Russian leadership has elevated modernization to the highest goal of state policy. The new Ukrainian authorities have insisted that integration with Europe remains their greatest objective. However, none of this applies seemingly for either government when it comes to their bilateral energy relations. First, in April, Presidents Dmitry Medvedev and Viktor Yanukovych surpised the world by coupling a 25-year extension of the Black Sea Fleet lease in Sevastopol with affirmation of the fundamentally-flawed 10-year gas supply and transit agreements brokered by Prime Minister Vladimr Putin and then-Prime Minister Tymoshenko in January 2009. In theory, the latest deal comes with a 30 percent discount in gas pricing. Conveniently forgotten was that Tymoshenko also obtained a 20 percent “discount” in 2009 or that, by the beginning of 2010, Gazprom had already renegotiated its major gas sup-
Æ Bundling two sensitive issues – gas trade and Black Sea Fleet – is destabilizing ply contracts with European gas consumers to reflect lower market prices. So Ukraine pays a similar import price as West European consumers of Russian gas in spite of its geographic advantage. The difference is the so-called discount for Ukraine does not come from Gazprom, but from an exemption on export duty by the Russian government which, of course, is subject to review. Bundling two sensitive issues – the Black Sea Fleet lease and gas supply and transit – that both deserve careful consideration has the effect of destabilizing both in the long run. Putin immediately upped the ante by proposing the merger of Gazprom and Naftogaz, which apparently stopped short even Yanukovych. Gazprom continues to work on what assets Naftogaz might contribute to a joint venture between the two state monopolies, such as pipelines and storage facilities. Producing deposits, offshore exploration pros- Æ16
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Opinion 5
September 3, 2010
Khoroshkovsky stinks up TV media sector
Director of TVi channel Mykola Kniazhytsky (R) at the hearing in Kyiv’s Appellate Administrative Court in Kyiv on Aug. 26. The U.A. Inter Media Group television channel holding, owned by head of the State Secutiry Service Valery Khoroshkovsky, challenged TVi’s frequency licenses and won the case. (UNIAN)
acronym) and owner of the dominant U.A. Inter Media Group television holding, did not like it. He must have thought that both our frequencies and those won by other companies should have been given to his holding. So, his holding sued us. But how can one go to court against the person who can sack any judge at any moment? Khoroshkovsky, in addition to heading the powerful State Security Service, is also a member of the High Justice Council which has insisted that there is nothing wrong about a businessman with a clear conflict of interests heading the SBU and appointing
judges as a member of the High Justice Council. Anyone could have seen Khoroshkovsky on TV saying the tender was illegal. We had suggested three times in court, the hearing of which we broadcast live, to call as witnesses the actual members of the National TV Council and study the shorthand record of their session. But for some reason, Khoroshkovsky’s companies were against it. But why would they be against the truth if they say truth is what they’re seeking? In court, Khoroshkovsky’s companies acknowledged that none of their rights were breached, and they’re only suing us as citizens who, according to Æ16
Why are Ukrainians in a bad mood? M A X I M B OR O DA
Ukrainians are once again pessimistic about the economic situation and their personal welfare. The sweltering summer burnt the wings of optimism and spoiled consumer moods. After three quarters of growth, the consumer mood crashed in June-July by 10.7 points, to 86.4 out of 200 points. This is the result of a joint research by GfK Ukraine market research company and the International Centre for Policy Studies, a think tank. There are many reasons for this, both economic and socio-political. Consumer moods of Ukrainians have always been very politicized. Political squabbles and election promises have been no less important in determining consumer behavior than drops in national currency rates or their income growth. It is this political background that caused the initial ascent, and
WITH KATERYNA GRUSHENKO
If you were a lawmaker, what kind of tax would you add to help filling Ukraine’s budget? Valentyna Kuzmych, pensioner “Taxes should be higher for those who live well – rich people should pay taxes for buying luxurious things and some extra money from their big incomes. I feel cheated because I worked for 40 years, paid many taxes during this time and now receive a pension of Hr 800, like everyone else. My pension is eaten up by the payments for the utility services. I still have my husband, but how can a single pensioner survive in this country?”
M Y KO L A KNIAZHYTSKY
On Aug. 30, our TV channel, TVi, was banned from analogue broadcasting, even though the station remains on the air for now on cable TV. There have been many commentaries about it both in Ukraine and beyond, and there will surely be more. Western politicians and civic organizations allege that freedom of speech is being curtailed in Ukraine, while the president and his team deny any wrongdoing. Having been at the epicenter of this scandal and being an active participant of it, I come back home late in the evening and remember my childhood. My mom used to read me books. One of my favorite books was a fairytale by an Italian communist writer Gianni Rodari, called “Gelsomino in the Country of Liars.” By irony of fate, a few years later my native city Lviv became the site for filming the famous movie based on this fairytale. Being a true communist, Rodari ridiculed the hypocritical reality of semi-Mafioso Italy of the time, for what I recognized was the Soviet Union. The pirates who seized power in the nation attempted to completely change its values to be able to preserve this power. The bald-headed leader was referred to as “golden-haired,” bread shops sold ink, and everyone had to read the only newspaper that was called “The exemplary liar.” People who tried to call things by their proper names, were sent either to prison, or the mad house which was called “sanatorium.” Ukraine is slowly turning into this sort of fairytale country. We feel it every day, and there is an urge to call things by their proper names. Back in January, TVi had honestly won the tender conducted by the National Council for TV and Radio to receive additional frequencies. Why was it honest? Because the law gives priority to producers of news and social programs. Our channel produces many of them, employs famous journalists, and the channel’s owner invested tens of millions of dollars into creating a modern TV company, in order to win these frequency licenses. But Valery Khoroshkovsky, head of the State Security Service (SBU, as it is known by its Ukrainian
VOX populi
it’s also at the root of the current depression. Having started after the victory in the first round of presidential election, the powerful information locomotive of the Party of the Regions confidently pulled the light carriage of consumer moods of the population to the brighter future so beautifully described in the election leaflets. The election ended with a victory and the landscape soon started to change: Instead of the expected reform came tax repressions, while the promised “improvement of life today” is hiding somewhere beyond the horizon of the International Monetary Fund’s demands. The summer heat affected the grain crop and melted the government’s rating. So, the president lost nearly 15 percent of his electorate between May and August, while the Party of Regions lost 14 percent, according to the data released by Razumkov Center, a think tank. It’s rather likely that these very people added to the ranks of pessimists in terms of consumer moods. Today’s economic realities also fail to improve the public opinion of the government or of consumer moods. The problem lies not in macroeco-
Consumer Confidence Index in Ukraine 120 110 100 90 80 70 60 50 40 Dec. 07 Sept. 09 Feb. 09 June 09 Oct. 09 Source: GfK Ukraine, International Centre for Policy Studies
nomic tendencies that generally are not so bad. In June alone, the State Statistics Committee reported an 8 percent growth in average salaries, 5 percent reduction in unemployment and back wages, and even deflation of 0.5 percent. The reason for people’s anxiety and disappointment lies elsewhere. Firstly, it’s related to the speed of economic revival that makes you think of driving in Kyiv: you may have spent a long time on the road, but have not moved an inch. Secondly, it’s about the little things,
Feb. 10
July. 10
such as the government’s intention to hike energy prices and increase the pension age. They remain unnoticed by official statistics, but make the Ukrainian consumers’ hearts beat uneasily. These are the very things that spoil consumer moods. Each one of them is worth a kopeck. But put them together, and you get a hryvnia. Maxim Boroda is head of the social economy program at the International Centre for Policy Studies, a Kyiv think tank. More information on www.icps. com.ua.
Ivan Belous, construction worker “Salaries should be reduced for our people’s deputies. People who buy expensive cars, cottages, and apartments should be taxed heavily. How can you tax poor people more? We don’t have anything to give and soon will be paying for air.” Oleksandr Tomanchuk, broker “Income tax should not exceed15 percent. Our government raised taxes for private entrepreneurs which is wrong. But the money collected from taxes goes nowhere. Or at least money doesn’t go for reconstruction of roads or improving housing.” Volodymyr Kravchenko, military “Once Kyiv’s mayor Chernovetsky suggested selling government posts officially. I think we can tax the bribes for receiving a post. At least 10 percent should go to the state coffers. Bribes are impossible to fight in this country.” Dmytro Goncharenko, external economic relations manager “The tax system should be selective – everyone should pay according to his ability. The entrepreneurs should pay according to their incomes. I would tax additionally the products that are harmful for the environment.”
6 Business
www.kyivpost.com
September 3, 2010
InterContinental hotel marks one year in Kyiv
Arms producers show their wares
Carsten Reiher, general manager of InterContinental Kyiv, and Anastasiya Zholynska, general director of Hotel Management, InterContinental's owner, cut a cake at a celebration of the hotel's first anniversary on Sept. 1. The five-star InterContinental, located just off St. Michael's Square, is one of the largest hotels in the capital. As well as accomodating guests, the hotel also hosted President Viktor Yanukovych's celebrations following his victory on election day in February. The InterContinental Hotels Group is headquartered in the United Kingdom and is the largest hotel company in the world, with 4,500 hotels in 100 countries. (Oleksiy Boyko)
Anatoly Hrytsenko, head of the parliamentary committee on national security and defense, inspects military equipment at the inaugural All-Ukrainian Defense Industry Forum on Aug. 31. The event, which brought together around 50 of the countries leading defense industry manufacturers, was held at the Ukrainian Home exhibition center. The companies presented examples of modern weapons, military technology and next-generation technology. Ukraine was the world’s 13th-largest arms exporter in 2009, according to the Stockholm International Peace Research Institute. (Ukrainian Photo)
ÆOn the move SCOTT LEWIS
Send On the Move news to grushenko@kyivpost.com, or contact Kateryna Grushenko at 234-6500. Send business photos and press releases to: news@kyivpost.com, or contact the newsroom at 234-6310.
IRINA FILENKO
has rejoined the Willard Group, an integrated marketing company whose business stretches from Istanbul to Moscow with a headquarters in Kyiv, as vice president and chief editor of Willard Marketing Monthly magazine. Lewis previously worked for Willard for six years before leaving for Pulse, another Kyiv-based marketing services company, where he developed full-service internal and external public relations for the group’s clients. Prior to that, he was business editor of the Kyiv Post. Lewis graduated from Central Washington University with a bachelor’s degree in public relations and journalism.
DANIIL SHASH
was promoted to vice president of PRT communications group, a Ukrainian public relations company created in 1999. Before that, she worked as media department director for PRT. In her new post, Filenko is responsible for strategic planning, business development and implementation of new trends and technologies. Filenko is a co-founder of PRT group. She has 15 years of experience in communication, particularly in journalism, public relations, marketing, advertising and lobbying. Prior to that, she worked as a journalist for the Investgazeta and Delo newspapers. Filenko is a graduate of the National Academy of Management with the degrees in finances and credit, and international economics.
was appointed sales and marketing director of Intercomp Global Services in Ukraine and Kazakhstan. In his new position Shash is responsible for business development in these countries. He will focus on increasing sales of outsourcing services, developing marketing strategy and partnership programs. Shash joined Intercomp Global Services in 2007 as business development manager and was responsible for company expansion in Kyiv. From 2008, he worked as business development manager for international markets and then headed the international marketing department. Previously, Shash worked in information technologies companies Terrasoft and DPS where he was responsible for business development. Shash is a graduate of Ukraine National Technical University.
ILONA POPENKO was appointed head of SPN Ogilvy’s Kyiv office. In her new post, Popenko will manage 30 staff as well as office operations. She will lead relations with key clients and supervise the implementation of projects. Popenko has worked at SPN Ogilvy’s Ukraine office for the last four years. She has extensive experience in project management, coordinating client relations and human resources development. Popenko has moderated English-language press conferences at the Junior Eurovision 2009 contest. She has also organized and carried out social projects such as Earth Hour. Popenko gained her first experience as a media manager at the Spark Marketing agency. She graduated Kyiv National Linguistics University.
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Business 7
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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 chief editor Brian Bonner at bonner@kyivpost.com
WITH ANDRIY YARMAK
Government is eating hand that feeds it With Ukraine’s harvest down after being hit by poor weather, the authorities are using unofficial controls to prevent grain from being exported. The result of this treacherous policy is easy to predict – just as easy as it was to foresee its high cost for the nation in previous years. Cash-strapped farmers are again being forced to sell their crop at lower prices so that the government can go into local elections in October chanting the same old political slogan: “Bread prices will not increase.” As a result, agricultural producers, who represent the poorest part of the population – incomes in the agriculture sector are officially the lowest – will once again have to pick up the bill for the government’s longstanding populism. Ukraine will once again lose its position on the global grain market and reaffirm its reputation as an unstable country. This, in turn, will curb investments. Most damaging, farmers will lose a few billion hryvnias, which they could have re-invested into new technologies and more efficient production for the future. Bakeries are already being pressured to keep bread prices stable. This will result in lower salaries or salaries unpaid and no new investments in the industry. I am very surprised how many people actually react positively to the government’s naive slogans and promises to keep bread prices affordable. The average Ukrainian consumes about 110 kilograms of bread annually, which at a price of Hr 3 per kilogram costs each Ukrainian Hr 275 annually. If the price of bread went up by 20 percent, it would cost each consumer about Hr 55 more per year (Hr 0.15 per day). Thus, politicians are ready to sacrifice the country’s image, the well-being of the agriculture sector and the livelihood of the poorest country people for 15 kopecks per day. This error is being repeated across the country’s economy by the current authorities, which have inherited the Soviet mentality that the words “business” has a rather negative connotation. Very few people in the country realize that it is not the government giving them money – it is business that feeds them and the government is only re-distributing what’s produced by business. Ukrainian governments have always been very poor distributors of wealth as they have usually kept a major share it for their own needs. But that’s not my point. My point is that the new government is actually doing everything possible to kill the last business survivors. Ukraine’s investment climate, already amongst the world’s worst, is getting even worse Unfortunately, there is very little people actually know about what’s happening due to political fatigue and because the ruling coalition backing President Viktor Yanukovych has actually been very effective in taking full control over everything – starting at the parliament, stretching further the
Æ Curbs on grain exports will hurt farmers, all so that politicians can brag about saving consumers 15 kopecks a day on the price of bread courts and media airwaves. The worst thing is that the government is not trying to attract more businesses into Ukraine. It continues trying to squeeze more out of what’s there already, but after years of such abuse, and following last year’s recession, it’s hardly possible for the private sector to cough up any more. Banks are now overloaded with money but they have a hard time finding good companies to lend money to. Small businesses have just realized that they need to pay twice as much as they did in taxes – just before the much talked about and anticipated but disastrous tax code is approved. I wonder what next to expect from our government. This year, they can get some more money out of businesses – making them pay more taxes – but next year there will be much less to squeeze out. The whole situation reminds me of the wise words I heard recently from a friend of mine. He said: “If you have a pig but no more money for feed, you better eat your pig.” That’s exactly what I think the government is doing. After abusing and mismanaging the farm for years, they are out of feed. Now they have decided to eat the only thing left – businesses. It sounds like a dead end to me. 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. He can be reached at andriy.yarmak@gmail. com
In case you missed them, read the last five Business Sense columns by experts online at kyivpost.com
August 20 with Kirill Ratnikov and Ivan Trofimenko. Kirill Ratnikov is a partner with Magisters. Ivan Trofimenko is a Kyiv-based associate with Magisters: “Progress made in effort to start public-private partnerships” August 13 with Anastasia Golovach, top macroeconomist at the Kyiv offices of Renaissance Capital: “Hryvnia should strengthen against dollar by year’s end” August 6 with Jorge Zukoski, president of the American Chamber of Commerce: “By taxing foreigners at higher rate, tax code will hurt investment”
July 30 with Alex Frishberg, founding partner of Frishberg and Partners: “Tips for tricky importexport trade in Ukraine”
July 16 with Slava Vlasov and Oleg Shmal. Slava Vlasov is a partner in the tax and legal services department of PricewaterhouseCoopers Ukraine. Oleg Shmal is an assistant manager in the tax and legal services department of PricewaterhouseCoopers Ukraine: “Any new tax code should be fair, simple, consistently applied”
#64*/&44"%7*4&3 Real estate market novelties and tendencies Real Estate sector is a complicated area of business, combining a number of activities ranging from land acquisition, procurement, engineering, financing etc. Rapidly approaching Euro 2012 brings fresh significance to real estate and infrastructure development in Ukraine.
OLEH MALSKYY Partner
The real estate market in Ukraine has always been a cherry for investors looking for high profitability. However, the economic crisis has modified this market significantly and has almost frozen it. Still, such situation on the market provided good opportunities for legislators to develop regulation in this sphere. Thus, in the most recent times, there were quite dynamic changes in the regulatory aspects of real estate market. Mostly, those changes related to technical registration of the ownership rights of real estate, land and land-lease arrangements. It seems that, currently, major changes related to construction standards and commissioning procedures, adopted in 2008, underwent further slight adjustments in terms of technical registration of ownership rights. Thus, the new government has passed some statutory provisions which specify the bodies in charge of such registration. With regard to general market developments, the most promising fields seem to be hotel management and development. The demand is largely caused by the Euro 2012 Championship. The new government endeavors to implement some incentives such as tax benefits for the hotels to be commissioned prior to the event. It should be noted that such regulations are generally targeted at larger hotels while there still remains a niche for better stimulation for small hotels, 2-3 star hotels and B&B hotels. Recently, we see a trend in which many small hotels are managed in the form of associations of small private apartments managed under one umbrella. This idea seems to be spreading throughout major cities. From the taxing point of view, such structure seems to be rather attractive. In relation to land matters, it seems that the new government is undertaking a couple of revisions and due diligence with respect to the activities carried out by their predecessors with regard to allocation of land, which may be seen by foreign investors as not a pleasant exercise. Unfortunately, if no caution and substantive risk management is taken during the acquisition this may be quite a dissapointing experience for many investors at the prior stage of development. Recently, we may observe rather frequent attempts of legislators to harmonize legislation in the sphere of registration of rights for real estate objects and land. Thus, one more time, distinctions in the registration of land-lease rights and registration of land-lease agreements were stipulated. It was set that land-lease rights arise from the moment of their registration, according to the procedure of registration of rights for immovable property. Still, as usual, in practice the realization of such a provision is problematic, due to the absence of a single authority entitled to register such lease rights. Also, the legislature has another time tried to introduce registration of ownership rights for real estate objects under construction. Recently, in practice, it appears rather complicated to register such rights. Still, considering the situation with frozen construction overloading the market, it may be a new opportunity for developers to formalize their rights for objects under construction and attract investors by decreasing risks arising of it. However, such an approach requires adopting additional legal acts, setting the procedure of registration of objects under construction and requirements for it. For the present time, ownership right for objects under construction may be registered if there is a necessity for concluding contract transferring rights for such object. Other novelties include possible introduction of the residency tax and residential real estate tax which, in turn, may cause the demand for bigger apartments to decrease. It should be noted, however, that the residency tax is to be structured in a way to affect only rich households with big living areas. And the amount of tax currently suggested is not substantial. With regard to new areas and perspectives, it seems that agribusiness is definitely a key priority for foreign investors. Unfortunately, ownership of agricultural land is still prohibited. Yet, there is a hope that the situation may change in the next couple of years. It is generally observed that many foreign investors, in spite of being unable to own land, are taking the risk of leasing agricultural land and concentrating on production rather than on ownership issues. The new law was passed on public-private partnership and there is a general belief that this will be a new wind for real estate development, introducing more projects that involve many fields ranging from communal property to infrastructure. Unfortunately, this stage offers no clear understanding of how the mechanism will work. However, the adoption of the frame law on public-private partnerships is quite a substantial move forward. Also, taking into account that many PPP projects are currently implemented in the neighboring states like Russia, there is a belief that the implementation of such projects in Ukraine is just a matter of time.
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8 Business Focus
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September 3, 2010
Sky Mall opening provides welcome shopping boost Æ Lagging retail sector expected to do well as consumers demand choices
BY O L G A G N AT I V GNATIV@KYIVPOST.COM
Ukraine has a new leader among shopping and entertainment centers – the Sky Mall, which opened in Kyiv on Aug. 27. The 45,500 square-meter retail complex is set to be followed later this year by Continental shopping center in downtown Kyiv, as retail becomes the first real estate segment to emerge from the 2009 recession. A lack of financing sidetracked many retail projects, but a huge unsatisfied demand make the sector’s growth prospects healthier than the rest of the real estate sector. “In 2009, many developers paused to reassess or optimize their projects,” said Natalya Kravets, director of the Retail Property Deparment at Colliers International. “First because there was no debt financing available, as no banks have given loans, and, second, it was difficult to set up a business plan because the rent rates was uncertain and hard to predict.” Oleksiy Zerkalov, vice president of the investment banking department at Kyiv-based Dragon Capital, said that despite the general market decline, “quality retail real estate is in high demand: Quality retail centers have low vacancy rates and relatively high rental rates. Current financial conditions prevent development of any new projects, but as financial conditions improve, high quality projects in Kyiv at the stage of development will find its investor.” According to real estate brokers, retail real estate has suffered the least compared to other segments, such as
At 45,500 square meters, Sky Mall is the largest retail complex in Ukraine. The mall, which was opened on Aug. 27, boasts major Western clothing stores such as Topshop, New Look and New Yorker. (Courtesy photo)
the warehouse or office property markets, because it is less developed than its neighbors. “Before the crisis, there was a huge unsatisfied demand [for retail space],” Kravets said. “That is why average retail rent rates in Kyiv have dropped by only 20-25 percent compared to
spring 2008. In the office and industrial segments, rent rates have decreased by 50 percent on average compare to spring 2008.” According to the most recent report by Colliers International, the average rental rate in Kyiv trade centers in 2010 had dropped from a peak of $105
per square meter in 2008 to $80 per square meter – the same level as in 2007. The total retail space available in Kyiv totals 275 square meters per 1,000 inhabitants, while in other Eastern European capitals this figure is much higher: 810 square meters in Warsaw,
620 square meters in Budapest and 615 square meters in Prague. The huge Sky Mall is 500 square meters larger than the previous leader, the Obolon district’s Dream Town. Situated on Henerala Vatutina Avenue on the way to populous Troyeshchyna district in Kyiv, the mall is jointly owned by Ukrainian developer Panorama Group and Oledo Group. The shopping mall is the second stage of the project, which already contains French hypermarket giant Auchan. By 2012, a 47,000 squaremeter third stage will open with household hypermarket DIY, an entertainment center, restaurants, cafes and a yacht club, said Oleksiy Strulyev, director of Astra Property, a part of Panorama Group. Together with more retail space, the Sky Mall brings several new clothing and footwear brands to Kyiv, such as U.K. clothing brands New Look and Topshop, Germany’s New Yorker, Spain’s Oysho, French children’s Æ9
www.kyivpost.com
September 3, 2010
Business Focus 9
A guide to buying an apartment without making a big mistake BY O L G A G N AT I V GNATIV@KYIVPOST.COM
Buying an apartment or a house is a lifetime decision. Nobody wants it become a lifetime trap, so it’s important to get the decision right. After seven years of Kyiv life, Oksana Levkova, 30, has finally decided to buy her own apartment. She got tired of renting and sharing her private space, so she started to look for ways to make what she calls one of the most important steps in life. The first question to consider is where to buy, which depends largely on your budget. According to realtors, the majority of real estate deals done on the secondary market are in the price range up to $100,000, which will get you a one- or two-bedroom apartment in the socalled “sleeping areasâ€? of Kyiv, outside the city center. Real estate consultancy and broker SV Development reported that, out of 707 deals on the secondary market made in Kyiv in August, 44 percent were one-bedroom apartments and 43 percent were two-bedroom apartments. In terms of value, 66 percent cost less than $100,000. Only 199 apartments were bought on the primary market. Currently, the lowest real estate can be purchased in Darnytsky district of Kyiv, starting at $1,356 per square meter, Before you purchase an apartment, it’s worth checking: • The number of previous owners. • Whether the seller is the owner. • How an apartment has moved from one owner to another. • Whether previous deals were made directly by owners or by their representatives. • Whether an apartment was the subject of a legal dispute or was pledged as collateral to a bank. • Whether there are any financial claims from previous owners. • Whether all renovations to the interior of the apartment have been approved by the relevant authorities. Note: The only source of this information is notaries, which have access to all registered deals since 2004. Source: Illyashev and Partners law firm.
and the most expensive is Pechersk, from $2,836 per square meter, according to the SV Development report. So far, Levkova has visited nearly 30 apartments that fit her basic requirements: one bedroom, not in the city center, with a nice view, close to a park or a forest and not a Khrushchovka (a low-cost apartment built in the 1960s under the rule of Soviet leaer Nikita Khrushchev). “The choice is very limited, unfortunately,� Levkova said. Kyiv has long suffered from a limited supply and choice of apartments, which has forced prices up. The next step is getting a bank loan. Levkova, a head of a non-governmental organization and a journalist, said she is confident of securing a mortgage. But not everyone is as lucky, after the crisis cut the number of banks willing to lend money and pushed interest rates higher. According to SV Development experts, currently only 25 banks are ready to issue mortgages. The requirements for borrowers have become much stricter: You need a high income and perfect credit history, you have to provide an initial payment of at least 50 percent of the apartment’s value, and the loan will be extended usually for 10 years, and in rare cases 15, at a rate of up to 30 percent annually. Levkova said she managed to find three banks offering acceptable terms. “The main driving force behind the boom in the real estate market was mortgages. Before the crisis, nearly 70 percent of apartment purchases were completed using bank loans,� said Serhiy Kostetsky, an expert from SV Development. “We expect the revival of the market by the middle of 2012, when mortgages are again available,� he added. Levkova said she has taken her time to make choices and consulted with friends and professionals. “I’ve made up my mind and started the market study half a year ago. I’ve talked to friends that have experience in buying flats, attended special courses and, of course, approached professional brokers,� said Levkova. Nevertheless, even though Levkova says her knowledge of the market and procedures have significantly widened,
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Sky Mall sets new heights in Kyiv retail Æ8 clothing store Okaidi and
Khrushchovkas, such as this one in Kyiv, still provide lower-cost apartment options. But the 1950s and 1960s-era Soviet housing built under Nikita Krushchev's rule is unappealing to many home buyers today. (Courtesy)
she doesn’t feel confident enough to handle the deal herself. So Levkova decided to use services of experienced real estate brokers. Despite some scandals, in which brokers have been accused of not taking responsibility for the apartments they are selling, Levkova said she wanted to tap their expertise and save time. Apart from the challenge of finding the best apartment to buy, a customer may face many other legal challenges connected with the ownership of the purchase. Maksym Kopeichykov, a partner from Illyashev and Partners, said that the signing of the final deal is the easiest part. The main work, he said, needs to be done before the decision. “It is crucial to study the history of the property you buy: When was it privatized, how many times it has
been re-sold, on what terms, whether it is pledged as collateral for a loan and whether current owners are eligible to sell it,� Kopeychikov said. He added that all research should be done by a broker that finds an apartment for a client. “When they sign a contract with a customer, most real estate brokers usually commit themselves only to finding an apartment and support while closing the deal, but do not guarantee the quality of the deal,� he added. In addition to this, broker’s services are not regulated by Ukrainian legislation and hence they don’t carry legal responsibility for their actions, explained Kopeychikov. His advice is to get a lawyer to check the apartment’s history. Kyiv Post staff writer Olga Gnativ can be reached at gnativ@kyivpost.com
Obaibi, as well as Spanish footwear designer Massimo Dutti. Apart from the two flagship shopping malls in Kyiv – Sky Mall and Dream Town, which opened in fall 2009 – several big retail real estate projects opened in other Ukrainian cities. For instance, in 2009, the 72,000 square-meter Riviera shopping mall opened in Odesa, the 52,000 square-meter King Cross mall was completed in Lviv, the 16,000 square-meter Continent opened in Donetsk, and other smaller projects were finished in other major cities. But despite the new openings, the Ukrainian retail market is slipping down in global attractiveness rankings as investors look for less risky projects and financing remains tight. Once considered one of the most attractive markets according to the A.T. Kearney Global Retail Development Index, Ukraine has dropped from fifth place in 2007 to 17th place in 2008 and 2009 reports. In 2010, Ukraine fell out of the top 30. “This shows that the Ukrainian retail market still has high potential, but peer countries may offer even higher potential growth. As a rule, money looking for investment opportunities is in far greater quantities than there are suitable projects. The Ukrainian retail industry offers a lot of opportunities which will be pursued by investors once the investment horizon improves,� said Zerkalov from Dragon Capital. Vadym Livshyts, managing partner at First Realty Brokerage, a real estate consultancy, says that foreign institutional investors are now more focused on other European countries which offer lower risks and a more stable and predictable market. “Now the lion’s share of developers who operate and invest are Ukrainian companies. Foreign investors’ and operators’ share and interest have dropped,� he said. “Future growth will depend on local investors.� Kyiv Post staff writer Olga Gnativ can be reached at gnativ@kyivpost. com
10 Business Focus
www.kyivpost.com
September 3, 2010
Tax breaks could bring more hotels by Euro 2012, but other hurdles will hinder flood of new projects BY O L G A G N AT I V
Major hotel projects expected to open soon
GNATIV@KYIVPOST.COM
The hotel business received a huge boost in July when a law was passed granting tax breaks to any hotel constructed before September 2012. The breaks are designed to increase the number of hotels in Ukraine in time for the Euro 2012 soccer tournament, which will take place in Kyiv, Lviv, Donetsk and Kharkiv. But experts say hotel developers face a series of other legal and economic challenges to get hotels built by 2012. According to the requirements of the Union of European Football Associations, Kyiv should have approximately 2,000 rooms in five-star hotels, 5,000 rooms in four-star hotel and 400 three-star rooms. Meanwhile, experts’ estimates show that at the beginning of the 2010 the capital has a significant lack in the five-star segment, which had only 933 rooms, and even a larger deficit in the four-star segment, with 1,432. To help to boost the construction
Name
Category
Number of rooms
Expected Opening Date
Fairmont Grand Hotel Kyiv
Five star
257
2010-2011
Ibis
Three star
215
2010-2011
Holiday Inn
Three-Four star
210
2011-2012
Radisson Royal, Kyiv
Four-Five star
550
2012-2013
Hilton
Five star
257
2012-2013
Park Inn (Dnipropetrovsk)
Four star
250
2011-2012
Novotel (Lviv)
Four star
70
2012-2013
Source: Colliers International, January 2010.
of the hotels, the parliament passed amendments to the legislation that free newly built and already operating hotels from paying value-added tax for the next 10 years, for those opened by Sept. 1, 2012. The tax holidays will come in force on Jan. 1, 2011 and will be applied to five-, four-, and three-star hotels. “Such tax incentives are very good news for hotel investors, and definitely provide additional stimulus,” said Roman Kostenko, a partner at Asters law firm.
According to Euromonitor, a global consumer market consultancy, Ukraine has plenty of ground to make up on its Eastern European neighbors. Euromonitor says that by 2009, the country had 812 operating hotels. Meanwhile, there were 1,746 hotels in Poland, which is co-hosting the Euro 2012 games along with Ukraine, 1,090 in Romania and 3,231 in Russia. But with two years left until Euro 2012, experts say that despite the tax
breaks, the three-week tournament is not, alone, a sufficient incentive to build a hotel, and plenty of other challenges exist for developers looking to open hotels in the country. “Euro 2012 is a one-time event, but business has to think about the future for years ahead. As a rule, Euro 2012 alone is not a reason to build a hotel,” Kostenko said. When deciding about building a hotel, investors consider the long-term future of the area and its business activity. From this perspective, there a lot of reasons to build a hotel in business and tourism centers, like capitals. But it is more difficult in regions, like Donetsk or Kharkiv. “Apart from a friendly tax environment, to proceed with investments, business needs a friendly economic environment,” Kostenko said. The financial crisis that hit Ukraine in 2008 dried up financing. Apart from economic challenges, many who want to build a hotel by 2012 could face mounting legal and
procedural challenges. According to legal experts, there are two major areas of difficulties. “First, getting a piece of land to build a hotel and, second, obtaining the necessary permissions to start construction,” Kostenko said. In the most positive scenario, it may take up to a year to find and buy a land plot and then another one or two years more to collect all permissions to start construction works, he added. In a recent hotel industry report, global real estate consultancy Knight Frank said there is a small chance to finish construction of a new hotel in Kyiv by Euro-2012 starting from now, if a company doesn’t have land plot and construction permissions. According to Knight Frank, the most attractive areas for starting a hotel business are Western Ukraine, such as the Lviv, Ivano-Frankivsk and Zakarpattya Oblasts and the south coast of Crimea. Kyiv Post Staff writer Olga Gnativ can be reached at gnativ@kyivpost.com
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www.kyivpost.com
News 11
September 3, 2010
Fugitive ex-economy minister denies involvement in corrupt state purchases Æ1 tion that specializes in identifying fugitives across the globe, to help detain Danylyshyn. Danylyshyn’s mug shot under a “Wanted” headline appeared on Interpol’s website in late August. Ukrainian media reports, citing anonymous sources at the General Prosecutor’s Office, have suggested Danylyshyn was hiding out in Germany, a country which by law would turn him over in cooperation with the Interpol network. There has been speculation that Danylyshyn could become the first high-ranking Ukrainian official to seek political asylum in countries that have provided it for Russian exiles, such as the United Kingdom and Israel. Opposition leaders, including Tymoshenko and former Deputy Prime Minister Oleksandr Turchynov, maintain charges brought against their former associates in government are part of a politically motivated witch hunt. As of Sept. 2, the authorities had not succeeded in catching Danylyshyn, but the Kyiv Post managed to speak with him by telephone. In the interview, Danylyshyn maintained his innocence and declined to reveal his whereabouts, but promised to return to Ukraine when he finishes undergoing medical treatment. He also said he did not consider the investigation of him to be part of a campaign of political oppression and welcomed moves by Ukraine’s current leadership to clean up the state procurement system. After this interview was published online at www.kyivpost. com, prosecutors summoned journalist Yuriy Onyshkiv for questioning. KP: Why are you in hiding? Do you feel guilty or do you regard the charges against you as political repression? BD: I’m currently receiving medical treatment. In addition, I’ve been on vacation since the beginning of June. KP: Are you aware that you are wanted by Interpol? BD: Well, I’m on vacation and have been seeking medical treatment since June for a number of illnesses, as I was advised to do so. I’m seeking treatment where I am currently on vacation. KP: Can you name the country
where you’re presently located? Are you afraid that they will apprehend you there? BD: I’m not afraid of anything. I’m currently receiving medical treatment. And as for the charges made by the General Prosecutor’s Office, I’d like to say that there were interim regulations [in place] with regard to the conduct of public procurement. And none of the documents about which they are speaking have ever come my way. These documents [in question] went to the Economy Ministry’s front office and were then acknowledged (signed) in receipt by the respective departments responsible for conducting [the procurement] procedures. The Procurement Department and Legal Department conducted the respective evaluations of certain documents subject to whether they met the conditions for carrying out procurements. Following this, once the directors and ordinary specialists stamped them, these documents were sent to be signed by government officials based on their respectively allocated duties. Therefore, to speak about having contact with persons who conducted procurement [on behalf of the government] I think is pointless and illogical.
Danylyshyn refuses to disclose his location, but says he is not hiding
KP: Are you referring to public procurement concerning the state enterprise Boryspil or fuel for the army? BD: I’m talking about procurement overall. I’m not interested in whether this was procurement for the Defense Ministry or other public procurements. I signed all the documents only when all the requisite stamps were on them from the principal specialists of the Economy Ministry. It’s of great importance to me that this adheres to current legislation and current regulations. I always endeavored to make sure that all the documents which came through the Economy Ministry were meticulously prepared and conformed to current legislation. Also, I’d like to note that when public procurement functions were handed over to the Economy Ministry, I set out the order to immediately cut the number of procedures for one agent. Indeed, this is easy to check. In 2007, when the Tender Chamber existed, a purchase
KP: Who is ultimately responsible for the purchases of which you’re being accused? BD: I’d like for everyone to understand that the Economy Ministry does not choose bidding procedures. Bidders either announced open bids or submitted the requisite documents to the Economy Ministry. For example, if for Boryspil we had the respective support of the regional development and construction ministry, then how could the Economy Ministry not trust officials from other ministries and government agencies, which, for example, say that this is a procedure which this or that bidder can use. I don’t recall who directly gave backing to a certain [bidding] issue.
was carried out by one agent for Hr 133 billion or 52.7 percent of all procurements. If in the first quarter of 2008, when a procurement commission worked under parliament, in only two months public procurements were made worth Hr 61.3 billion or 77 percent of all government purchases at a time when the Economy Ministry wasn’t handling public procurements; then starting in April 2008 I managed to substantially reduce the share of these procurements. For example, in the second through the fourth quarters of 2008 these kinds of purchases made up only 21.7 percent (of all government purchases), and in 2009, 28.4 percent. In these purchases, close to 70 percent were coal purchases in order to set up a state reserve for coal. This is to say that I don’t see any kind of personal involvement or interest in this. And even this question is illogical since I had no direct contact with the bidders.
KP: That is, you don’t deem the charges against as you as unlawful? BD: The Economy Ministry couldn’t have given approval to a certain procedure when there weren’t the definite documents that confirmed the legal-
ity or illegality of a certain procedure. The respective ministry or government agency always submitted documents pertaining to a particular matter. KP: And you don’t feel guilty of the charges being pressed against you by the General Prosecutor? BD: I’d like to say that I commend the new government’s aspiration to bring order to public procurement. I’ve always wanted the same thing. We submitted the draft law On Public Procurement, signed by me personally and Martin Raiser, the World Bank representative for Ukraine, Belarus and Moldova. However, parliament was deadlocked and this law wasn’t supported. I’m happy that this law is now in place and that parliament adopted it. Now certain actions can be made. Additionally, when we were working, interim public procurement regulations were in force that changed twice or three times. Thus, the legislation that was supposed to govern the public procurement process was unstable. I believe that it wasn’t the Economy Ministry themselves that made these purchases. The buyer always set the price and form of purchases and he always carried the responsibility. The Economy Ministry only approved the procedure, not the price. By the way, we’ve always pointed this out. Therefore, as the economy minister I didn’t have grounds to refuse the buyer if all the [requisite] documents were there. KP: If you feel you’re not guilty, then why not appear in front of investigators at the prosecutor’s office? BD: When I’m finished being medically treated I’ll come to Ukraine and do everything accordingly. KP: And when will this be? BD: This will happen when my doc-
tors allow me to do this based on the state of my health. KP: Would you please specify what kind of health problems you have? BD: I have and have had problems with my health. KP: Do you think the accusations made against you of causing (monetary) damages to the state are political persecution? BD: I don’t think this is political persecution. I’d like to say that I see it, perhaps, as a matter which requires adequate examination. KP: You perhaps are aware that investigators, reportedly, opened your BM Bank safe? What do you think they were searching for or what could they have found in it? BD: Let the investigators deal with this. I’d like to emphasize once more that I didn’t act with any bias and didn’t even see the people who submitted the documents to the Economy Ministry for the conduct of procurement. KP: Are you exploring the possibility of applying for political asylum abroad? BD: I don’t want any political asylum. I want to live in one country, the one which I love and respect. I’d like for my case to reach a final conclusion already. I don’t want this procedure to be politicized in any way. I don’t think it is. I’d like for (them) to prove in this case that I had no personal motives that could tie me to a certain [procurement] procedures. I want nothing more. KP: Have Ukrainian law enforcement authorities contacted you? BD: When I was leaving for vacation, I did it on legal grounds. No one summoned me anywhere. I didn’t sign any [statement] banning me from leaving [the country]. And I’ve always gone to the prosecutor’s office when I was asked to. I went to the Administration of the Kyiv Transportation Prosecutor’s Office and provided corresponding testimony. Kyiv Post staff writer Yuriy Onyshkiv can be reached at onyshkiv@kyivpost.com
12 News
www.kyivpost.com
September 3, 2010
Since the record-breaking 2005 sale of Ukraine’s largest steel mill, Kryvorizhstal, which set new standards in transparency, the nation’s privatization has been held up. The few auctions that have taken place in the last five years were marred by non-transparent, insider deals that disposed of valuable state assets for bargain basement prices to well-connected Ukrainian and Russian tycoons. Meanwhile, instead of fetching top dollar for public assets, the government is going deeper into debt. September 2009, Tymoshenko orders cancellation of sale of prized state chemical maker, Odesa Portside Plant, following its televised auction after accusing Ukrainian tycoons of colluding to keep the sales price low – $600 million instead of the $1 billion that many expected it to fetch.
June 2010, the Mykola Azarov government sells a 76 percent stake in big locomotove maker Luhanskteplovoz to Russian Bryanskiy Zavod in an auction for $51.8 million, or almost $7 million less than the same buyer paid for the plant three years earlier. The 2007 sale had been cancelled by a court decision because the only two bidders were both part of Russian Transmashholding and the sales price was tens of millions of dollars less than the company’s market capitalization at the time.
September 2005, Prime Minister Yulia Tymoshenko oversees the resale of Ukraine’s biggest steel mill Kryvorizhstal to Mittal Steel for a record-breaking $4.8 billion, $4 billion more than it had earlier been bought by Ukrainian oligarchs in the last year of President Leonid Kuchma’s reign.
State sells cheaply, and not transparently, in rare deals BY J O H N M A R ON E MARONE@KYIVPOST.COM
Ukraine’s privatization program is well behind schedule and as murky as ever, even while the government continues to dig itself deeper and deeper into debt. While the country’s citizens will have to shoulder the nation’s debt burdens, the few state assets that have reached the auction block have been sold at bargain basement prices to Russian and Ukrainian tycoons. So far, Ukraine has received less than $53 million from privatization, or 7 percent of its goal for 2010, the State Property Fund reported last month. The government had projected privatization revenues of more than $820 million as part of this year’s state budget. And, as recently as June, Deputy Prime Minister Sergiy Tigipko told an investor conference in Moscow that President Viktor Yanukovych plans to cut state ownership in the economy to as low as 20 percent from the current 37 percent within five years. This feat, Tigipko said, could be accomplished by selling off thermoelectric generators and electricity distribution utilities in addition to Ukrtelecom, the country’s fixed-line telephone monopoly, and the Odesa Portside Plant, a strategic chemical maker. But now the sales of these assets – including the billion-dollar Ukrtelecom and Odessa plant – are expected to be put off yet again, until next year at the earliest. A month after Tigipko talked about
speeding up the process, privatization chief Oleksandr Ryabchenko described next year as a more likely auction date for the Ukrtelecom, which is estimated to be worth at least $1 billion. As for ammonia producer Odesa Portside Plant, former Prime Minister Yulia Tymoshenko cancelled its highly anticipated sale last year for $600 million, claiming that Ukrainian tycoons and a Russian company taking part in the bidding had conspired to fix the price, which she had expected to reach $1 billion. And this was by no means an isolated example of highly suspicious state sales. A 75 percent stake in state locomotive maker Luhanskteplovoz was sold to a Russian buyer in 2007 for half the company’s market value: $52 million against a market capitalization of the entire asset of $130 million. Again, it was Tymoshenko who pushed for the cancellation of the auction, which was repeated this year under Prime Minister Mykola Azarov, fetching several million dollars less than three years ago. Since then, the government has limited itself to selling off its minority stakes of 25 percent in a couple of oblenergos, or regional energy distributors, whose majority oligarch owners allegedly colluded in keeping the sale price low. In Kyiv, the privatization picture is even more dismal, with lucrative land plots having been sold off for a fraction of their worth under eccentric Mayor Leonid Chernovetsky.
The paperwork subsequently disappeared. More recently, 80 percent of Kyivmiskbud, Kyiv’s city-owned construction company once valued at $700 million, was opaquely transferred in August from municipal ownership to still unknown owners. On Sept. 1 the price of the deal was revealed as $14 million. All of these tainted deals and auctions stand out in marked contrast to the sale of the nation’s largest steel mill, Kryvorizhstal, in 2005 for a record $4.8 billion to international steel giant Mittal (now ArcelorMittal). As with Luhanskteplovoz and Odesa Portside Plant, Tymoshenko spearheaded the cancellation of an earlier state auction for the plant. That discredited and reversed sale fetched only $800 million from the nation’s leading billionaires, Rinat Akhmetov and Viktor Pinchuk. According to Oleksandr Bondar, a former State Property Fund chief and currently the deputy head of parliament’s control commission for privatization, the foot-dragging under the Yanukovych administration means that the five-year trend of non-transparent auctions isn’t likely to change. “The authorities are taking their time, figuring out who gets what,” Bondar said. “All this is being done behind the scenes.” Not only are few state assets being put up for auction, but international buyers willing to pay a market price are hesitant to show any interest due to Ukraine’s shady privatization history, he said.
“When [former President Viktor] Yushchenko was in power, he held things up. Now it’s Yanukovych doing so. If he wanted to move privatization along, he could do so,” Bondar said. In support of the government, however, some international analysts such as Timothy Ash, head of emerging markets research at the Royal Bank of Scotland in London, believe that now is not the time to be selling state assets. And, according to Ash, the International Monetary Fund, which just approved a $15 billion loan agreement with the Azarov government to help it plug gaping budget holes, agrees. “The fund agreed to the government’s decision to reduce the target for privatizations (cut by 70 percent) in 2010, and indeed seem pretty relaxed/ realistic about likely receipts from state asset sales. They recognize that the global environment for such sales is likely to be muted, limiting the cash return and encouraging a delay in such sales,” he wrote in a research note. In return for IMF money, though, the government agreed to cut public spending, raise gas prices for the population and increase the retirement age for pensioners – all measures that disproportionately fall on average citizens. Figures from the Finance Ministry put Ukraine’s state debt already at $43 billion in June excluding the IMF loan). Revenues from privatization for the last 19 years, meanwhile, come to a paltry $47 billion. But according to Martin Raiser,
country director for the World Bank in Ukraine, Belarus and Moldova, comparing privatization receipts and state borrowing is like comparing apples and oranges. He warned that a privatization program should be seen as a part of structural reforms rather than used to fill empty budget coffers. “This is a one-off effort and thus the systemic budget problems aren’t resolved. The primary purpose behind privatization should be to find the right private owner for the asset, who would pay taxes and hire employees, while simultaneously stop draining budget funds in subsidies and other forms of support,” he said. However, the authorities have hardly got a strong track record for finding the best owner, with many assets sold off on the cheap to well-connected buyers. And the budget gap will have to be filled, one way or another. “From the very beginning, privatization receipts were supposed to go toward social spending, until reforms boost economic development, but the authorities have kidnapped reforms as well as privatization,” former privatization chief Bondar said. Only after the state cleans up the way it holds auctions will cash-paying buyers take an interest and the real value of Ukraine’s state assets become clear, according to Bondar. “No one thought the government could get $4.8 billion for Kryvorizhstal either,” he said. Kyiv Post staff writer John Marone can be reached at marone@kyivpost.com
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News 13
September 3, 2010
Yanukovych corruption fight targets Tymoshenko allies
Opposition to rally against gas policies on Sept. 7
Æ1 said Oleksandr Turchynov, the first deputy prime minister under Tymoshenko. Turchynov, considered Tymoshenko’s right-hand man and a former head of the powerful State Security Service law enforcement agency, is widely rumored by Ukrainian media to be next in the line for the ongoing dragnet. Turchynov is allegedly being investigated for selling natural gas at below-market prices to private companies in 2009. According to Turchynov, it was Yanukovych who signed the illegal gas deal while serving as prime minister back in 2007. “They were trying to sell the gas to companies close to Yanukovych,” Turchynov said. In a press conference the next day, Turchynov said that he has been told by his sources that he might be arrested in coming days. The Prosecutor General’s Office would neither confirm nor deny whether Turchynov is under investigation. “We have hundreds of cases open on natural gas,” said Yuriy Boychenko, a spokesman for the prosecutors’ office. Maryna Ostapenko, a spokeswoman for the State Security Service that Turchynov used to head, said she was unaware of any such investigation. But Turchynov is not the only top official from Tymoshenko’s team to feel the heat. Former Labor Minister Lyudmyla Denysova said that she is being targeted.
B Y SV I TLA N A TU C H Y N SK A
Former Labor Minister Lyudmyla Denysova
TUCHYNSKA@KYIVPOST.COM
Former deputy Defense Minister Valeriy Ivashchenko
Maria Kushnir (C), former deputy accountant at the state gas and oil monopoly Naftogaz, was detained for questioning last year. (PHL)
“I am aware that a special group arrived to Crimea to dig up dirt about me,” Denysova said. Denysova was prosecuted before, in 2000, when she was finance minister of the Crimean Autonomous Republic. She spent 24 hours in detention after being charged with abuse of power. She said she was persecuted for refusing to sign a budget document. The charges were dropped later. Others, meanwhile, are already behind bars or fugitives Former Minister of Economy Bohdan Danylyshyn is the latest former official to attract attention from law-enforcement agencies. Shortly after prosecutors opened a criminal case against him, Danylyshyn was reported to have fled to Germany. After a requeste by Ukrainian law enforcement, Interpol posted his photo on their website on Aug. 31 as a wanted fugitive. Danylyshyn is sought on suspicion of fraud for misuse of public money, causing damage to the state worth Hr 4.5 million in approvals of state purchases. He was the economy minister from December 2007 to March 2010. His allies assume he will seek political asylum, either in Germany or another European country. Ihor Didenko, the former deputy
head of the state-owned Naftogaz oil and gas monopoly, is imprisoned. So is former customs chief Anatoliy Makarenko, ex-deputy head of energy customs Taras Shepitko, and former deputy defense minister Valeriy Ivashchenko. Police are searching for Maria Kushnir, an accountant with Naftogaz. Former head of the state aviation administration, Oleksandr Davydov, is also a target is prosecuted for corruption as well.
Æ President says he is trying to restore order to nation Turchynov said the cases amount to political persecution. "Why were there no allegations when those people were in power? Nobody opposed their decisions then," Turchynov told a news conference on Sept. 2. Former Interior Minister Yuriy Lutsenko, once the nation’s top cop,
said that Didenko and Makarenko are continuously asked to testify against Turchynov. “Turchynov is their main target,” Lutsenko said. Bloc of Yulia Tymoshenko parliamentarian Andriy Senchenko said the “persecutions” will intensify as the Oct. 31 local elections draw near. “They will have to show off with their ‘crusade against corruption’ to gain votes,” Senchenko said. According to political analyst Volodymyr Fesenko, the current government is looking to blame the previous administration for the government’s big budget deficit and other financial troubles. “At the same time I assume it is not hard to find abuse by any Ukrainian official. However, it is done selectively and only opponents are investigated,” Fesenko said. Fesenko does not believe Turchynov or Tymoshenko are under threat. “Arresting officials is one thing, but arresting leaders of the opposition is another. It can boost not only the opposition’s support in Ukraine, but draw unwanted international attention,” Fesenko said. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@ kyivpost.com
The opposition plans to hold a protest demonstration on Sept. 7 outside the Ukrainian parliament. “[President Viktor] Yanukovych signed the fleet deal with Russian and promised in exchange the gas prices will not grow,” said Oleksandr Turchynov, a top ally of ex-Prime Minister Yulia Tymoshenko. “However, they do. That is the way they are trying to fill the budget… which is unacceptable.” In June, the Stockholm Arbitration Tribunal obliged the state holding to return 11 billion cubic meters of gas to Swiss-registered gas trader RosUkrEnergo, a murky intermediary that Tymoshenko cut out of the Ukraine-Russia gas trade before she left office earlier this year. In April, Yanukovych signed a controversial Kharkiv agreement that extended the stationing of the Russian Black Sea fleet on the Crimean peninsula for another 30 years in exchange for cheaper gas. Protesters will call for a moratorium on raising natural gas prices for consumers. “We hope many people will participate, as more are losing illusions about Yanukovych’s administration,” said Turchynov. The opposition protest will start at 10 a.m., timed for the opening session of the Ukrainian parliament. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.com
A Yulia Tymoshenko supporter during a Kyiv rally on May 11.
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14 News
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September 3, 2010
Missing Kharkiv editor ran small newspaper covering corruption BY E L E N A LVOVA
Three weeks after the disappearance of Kharkiv editor Vasyl Klymentiev, there are no clear answers, only versions and plenty of questions, including: Was he working on a story for his small Novy Styl newspaper that could have gotten him killed? Solving the mystery has attracted the attention of the top law enforcement officials in the nation, including Interior Minister Anatoliy Mohyliov. On Aug. 26, Mohyliov announced that the investigation will be coordinated from Kyiv, since the case might involve both current and former police officials. On the morning of Aug. 11, Klymentiev set the alarm system in his apartment and left. Nobody has seen him since. A few days later, Kharkiv police launched an investigation into possible premeditated murder. Even though investigators said they are not sure that’s what happened, Kharkiv chief of police Oleksandr Barannik on Aug. 27 said he suspects Klymentiev was murdered because of his professional activity.
Who is Vasyl Klymentiev? A 67-year-old chief editor and publisher of the Novy Styl newspaper, Klymentiev kept a low profile. He always kept aloof. He was seen a lot at press conferences conducted by topranked police and prosecutors. They were the focus of his coverage. The newspaper never had steady funding and its circulation varied.
“Sometimes, if we had a scoop, we would publish 5,000 copies, sometimes 3,000,” Petro Matvienko, Klymentiev’s deputy said. Klymentiev has repeatedly tried to push the paper to retail, but it never happened. But money was a recurring problem. “Where did the money come from? Mostly, it was Klymentiev’s pension,” Matvienko said. Klymentiev also took money from people he covered – including some who got into trouble with government officials. “There are a lot of businessmen who get pressed. Some of them would come to Klymentiev and say – ‘the authorities are taking my business away.’ Klymentiev would help them out," Matvienko said. "Then they would ask ‘how can we express our gratitude?’ and he would say – you can pay the print of our next issue or distribute the paper among your friends. That would be enough.” Klymentiev focused his coverage on corrupt police officers and judges – socalled “werewolves.” His friends say he was an anticorruption crusader on these explosive and potential dangerous issues. But others suggest he got caught up in playing dirty games by smearing top officials in return for money. Novy Styl scrutinized Kharkiv officials, such as the head of the Kharkiv tax administration, Stanyslav Denysiuk, and deputy prosecutor Sergiy Khachaturian.
Unsurprisingly, given his line of work, Klymentiev received threats. At a press briefing of former prosecutor Vasyl Sinchuk, he complained that somebody was shadowing him. According to Matvienko, Klymentiev rarely left his home in the days before his disappearance.
Dead or alive? Matvienko believes that Klymentiev is dead. “His disappearance, or murder is definitely related to his job,” Matvienko insists. “There are a lot of people out there who were afraid that Klymentiev would disseminate negative information about them.” Police think the same way. “The most feasible version is murder related to his professional activity,” Barannik, the Kharkiv police chief, said. “It’s not revenge. It rather looks like somebody wanted to prevent publication of compromising materials.” Deputy Interior Minister Vasyl Farynnyk doesn’t rule this version out or others – such as murder by someone close to him. Farynnyk also didn’t rule out the possibility that Klymentiev might be still alive. Investigators have published leads. They are questioning people named in Klymentiev’s stories. Some of them might be unhappy with the author since, according to Barannik, accuracy and fairness weren't always hallmarks of Klymentiev’s journalistic skills. Other times, Klymentiev turned out to be right on the mark and officials
Vasyl Klymentiev
acknowledged that one of his reports provided the grounds for launching an ongoing investigation into a former police official.
Where’s the body? “When there is a murder, there is a body,” said Serhiy Yermakov, correspondent of Ukraina Kryminalna (Criminal Ukraine) newspaper. “There is no body, only a cell phone found under some mysterious circumstances.” Klymentiev’s cell phone was found in Pechenizhske water reservoir on Aug 17. One local resident found a cell phone and activated the found SIM card in his own phone. Nobody
can explain how the guy guessed a pin code and why he took the SIM card, not the phone. Klymentiev’s brother received an automatically generated message notifying that the number is in use again. He called the number and the man who answered said he found the phone. Police searched the area and divers searched the lake. Shortly before Klymentiev’s disappearance, Matvienko said they went to take pictures of the house of a tax inspector, Denysiuk, the focus of a story. The inspector lives near the reservoir where the phone card was found. But Matvienko doesn’t think that Klymentiev might have returned to the same place. Although law enforcement says that the Klymentiev case will be solved, Matvienko is pessimistic. He said he trusts the investigators, but not their bosses. He calls the incident “Gongadze case #2” – a reference to muckraking journalist Georgiy Gongadze, who was beheaded on Sept. 16, 2000, in one of Ukraine’s most sensational unsolved crimes. He regards the interior minister’s decision to take “personal control” over the case as a PR stunt. On the other hand, hope exists that the authorities will solve the case to calm fears about what many regard as renewed curbs on freedom of expression since President Viktor Yanukovych took power on Feb. 25. Elena Lvova is a freelance journalist living in Kharkiv.
Court cancels frequencies of feisty TVi, Channel 5 BY O L E S I A OL E S H KO OLESHKO@KYIVPOST.COM
Ukraine’s media landscape could be reshaped after Channel 5 and TVi, two small stations providing the last vestiges of independent television journalism, lost a dispute over their frequencies. A Kyiv appeals court ruled in favor of the U.A. Inter Media Group (Inter), the nation’s largest television holding, upholding a lower court decision that analogue frequencies awarded to the station in January were obtained illegally. At the time, the National Council for Television and Radio awarded Channel 5 with 26 and TVi with 33 analogue frequencies. The Inter group, owned partly by State Security Service of Ukraine chief Valeriy Khoroshkovksy, praised the court ruling. “There were several violations,” said Yaroslav Porokhniak, a top executive at the Inter group. The council session lacked a quorum when it awarded the licenses on Jan. 27, he added. Moreover, Porokhniak said that TVi contested the disputed Jan. 27 council competition “and the judges banned distribution of frequencies until the case is resolved. As of Jan. 27, the ban was still in effect.” Additionally, Ukraine was supposed to no longer issue analogue frequencies after Jan. 1 because of a nationwide switch to a digital television platform. The litigation, however, became
Young activists of a Ukrainian human rights organization stage a protest on June 25 in front the Kyiv central office of Ukraine’s State Security Service, a leftover from the Soviet KGB. In a clear-cut conflict of interest for many, the service is headed by billionaire media magnate Valery Khoroshkovsky. Dozens of journalists and social activists marched in Kyiv this month to denounce what they see as a return to media muzzling in the ex-Soviet country. (AFP)
more than merely a commercial dispute and raised concerns about press freedoms under the administration of President Viktor Yanukovych, who took power on Feb. 25 after defeating exPrime Minister Yulia Tymoshenko in
the presidential election nearly three weeks earlier. Both TVi and Channel 5 claim the court decision was unfair and marked a return to the era of censorship and political pressure on media,
two hallmarks of ex-President Leonid Kuchma’s authoritarian tenure from 1994-2005. “That’s just what’s happened. Two independent channels who managed to withstand political pressure were
deprived of the licenses they were awarded within a totally legitimate competition,” Mykola Kniazhytsky, TVi executive director said. Noting that the court also canceled frequencies awarded earlier, Kniazhytsky claims Khoroshkovsky is trying to shut down independent broadcasters and enhance the powers of his government-friendly channels, which already dominate the national landscape. TVi has already lost its regional broadcaster status and, without its analogue frequencies, remains only on satellite and cable. “We’ve lost tens of millions of hryvnias,” Kniazhytsky said. “We’ve bought and installed 33 transmitters, paid all the license fees to the state, now we are losing even more money as we have to cancel contracts with our advertisers who bought our time thinking we’ll be broadcasting in analogue format [that reaches greater audience].” Channel 5 is also calculating its losses, but it also has other problems. The broadcaster needed additional frequencies to increase its coverage in order to split itself into two national channels – informational and educational. Many media experts think Petro Poroshenko, the owner of Channel 5, was going to sell one of the constituent companies. The National Council for Television and Radio already approved two separate licenses for it, but now neither has national coverage. “Without those additional frequencies, the channel will stop broad- Æ16
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News 15
September 3, 2010
An activist beats a pail with a stick in front of a sign (R) which reads “No To Censorship” during a protest in Kyiv on Aug. 26. The protesters – mainly journalists and artists – gathered in front of a court that later ruled that two Ukrainian TV channels, TVi and Channel 5, obtained frequencies illegally. The station's journalists are considered among the few on TV to offer fair, as opposed to fawning, news coverage of the government. (AFP)
Reporters Without Borders cites assaults on free press Reporters Without Borders, a Frenchbased watchdog promoting freedom of the press, on Sept. 2 released a 14-page report entitled “Press Freedom: Temptation To Control,” about the media situation in Ukraine. Based on findings from a July 19-21 visit to Ukraine, the report says there has been a marked increase in attempts to obstruct the work of the media, including physical attacks on journalists within the last six months and are indicative of a disturbing level of hostility toward journalists on the part of the authorities.
Report conclusions: When prosecutors refuse to recognize a journalist’s complaint but register the complaint filed by his aggressor, it sends a clear message. It shows that that government officials feel no responsibility towards civil society and the citizens who voted them into power. Worse still, the Ukrainian laws that exist to protect media freedom and the ability of journalists to work are not being used to punish even the most flagrant violations. Acts of censorship that favor the new government [led by Prime Minister Mykola Azarov] have been growing steadily in the strategic broadcasting sector. In most cases, it has been the management itself that told staff not to broadcast certain stories or to eliminate passages critical of the government. None of the people Reporters Without Borders talked to on this
trip said the situation was comparable to that prevailing under ex-President Leonid Kuchma (1994-2005), or that there was anything resembling a return of the notorious “temniki” (government directives about how to cover stories). But broadcast media pluralism has been seriously eroded. If the trend continues, the freedoms acquired in recent years could be swept away and the advances needed to improve civil liberties, including freedom of expression and the right to information, will not take place. To what degree is the government capable of creating a truly public broadcasting service, one that is independent of the government and really serves the population? Is it ready and able to reach a consensus on this issue by working with civil society and media representatives? All this remains to be seen. It is hard to be optimistic at the moment, although President Viktor Yanukovych has called for press freedom violations to be properly investigated. Several recently adopted laws restrict the work of the media and expose them to intolerable prosecutions on the grounds of protecting privacy. Websites are also subject to increased surveillance, one that shows that the authorities are becoming aware of the growing influence of the Internet and new media in shaping public opinion. Attacks on journalists and cases of
obstruction of their work are continuing. Many of them are taking place in the provinces, where harassment of the media is more intense and, at the same time, less well known. The Oct. 31 local elections, which Reporters Without Borders will monitor with particular attention, will test the government’s will to normalize relations with the media. The authorities still have a chance to give Ukrainians and the international community evidence of a desire to abandon these practices. For his first trip abroad as president in March, Yanukovych chose to go to Brussels and “set himself the objective of concluding negotiations to reach an association accord with the European Union. The European Commission has included respect for human rights and fundamental freedoms in its list for priorities for the 2010 European UnionUkraine association agenda. Only the demonstration of a clear political will to do what is necessary will restore confidence in the authorities. Developments in the coming months will be crucial for determining whether the trend of the past two quarters is temporary or destined to continue The conflict of interests between Valeriy Khoroshkovsky’s Inter Media Group and his various senior positions in the state apparatus and his media holdings [are serious]. Is Khoroshkovsky – who heads Ukrai e’s main intelligence agency, the State Security Service, and sits on the board
of the national bank and the High Council of Justice as well as owning the country’s most important media group – trying to rein in two TV stations [TVi and Channel 5] that criticize the government and hobble two of his personal business rivals all at the same time? It is a fair question. It is very hard to accept the government’s view that this is just business dispute. Finally, the investigation into journalist Georgiy Gongadze’s abduction and murder on Sept. 16, 2000, is supposed to be on the verge of completion, which should open the way for a new trial in this case. This gives the authorities a new chance to end the lack of judicial transparency by allowing the public and the press to attend the trial. Ukraine has achieved significant progress in media freedom and the right to information in the past five years. If this is to continue, the country’s leading political figures must help to ensure that press freedom violations are dealt with quickly, instead of being ignored, that the judicial system is able to operate in an independent manner, that legislation compatible with international standards is adopted, and that the influence of the country’s wealthiest businessmen over its political life and media is curtailed.
Recommendations: • Deal with flagrant violations of media freedom with thoroughness
and rigor and, above all, ensure that those responsible for physical attacks on journalists are prosecuted; • Ensure that the police and judicial authorities apply the legal provisions regarding press freedom, especially article 171 of the criminal code. • Involve civil society representatives in the drafting of the law that creates a public broadcaster to help ensure that it is independent of the government; • Make the system of allocating broadcast frequencies more transparent and, in the legal dispute over the frequencies of TVi et 5 Kanal, ensure that the next hearing is open to the public and press; • Ensure the independence of the entities that regulate broadcasting by taking particular care with their composition and the selection of their members; • Ensure free and rapid access to public information, both for journalists and ordinary citizens; and • Guarantee the transparency of the investigation into journalist Georgiy Gongadze’s murder and the open nature of the coming trial. Reporters Without Borders reiterates its readiness to meet with the Ukrainian authorities in the near future in order to continue the dialogue it began with them at the start of the year. The report can be found online at http://en.rsf.org/IMG/pdf/_rapport_ ukraine_anglais.pdf
16 News/Opinion
www.kyivpost.com
September 3, 2010
Kniazhytsky: Nation has no chance to join Europe
Party of Regions campaign posters in the central square of Kharkiv on Aug. 28. (Yaroslav Debelyi)
Lawmakers amend local election law after critics assail unfair elements BY S V I T L A N A T U C HYN S KA TUCHYNSKA@KYIVPOST.COM
In a move to make the Oct. 31 local elections more democratic, a majority of parliamentaries voted to allow new political parties – even those that registered less than a year ago – to nominate candidates. The idea, supported by Party of Regions member Oleksandr Yefremov, won the support of 264 members in the 450-seat parliament on Aug. 30. The vote came amid rising criticism from within and outside Ukraine by election watch dogs who saw the electino rules voted in by President Viktor Yanukovych's coalition earlier this summer as not democratic. Scrapped now as a result of the amendments is a restriction – criticized as an undemocratic preservation of the status quo – that allowed participation of political parties that had been registered at least one year before the election. The provision would have kept many up-andcoming politicians from participating, such as Deputy Prime Minister Sergiy Tigipko, leader of the Strong Ukraine Party, who finished third in the presi-
dential elections this year. Also frozen out would have been Front Zmin leader Arseniy Yatsenyuk, who finished fourth in the presidential balloting, ahead of exPresident Viktor Yushchenko. Another amendment is hailed as improving the democratic nature of the election. It allows all political parties to have members on the all-important elections commissions, which oversee the fairness of votes in the nation’s polling stations. Previously, only members of parties represented in Parliament could form commissions. More changes could be ahead involving Kyiv. On Sept. 7, lawmakers will consider whether to give the Kyiv city council the right to eliminate elected district councils in the city. First deputy mayor Olexandr Popov, said the move could help save money spent on the district councils. Critics see it as an attempt by Yanukovych to grab power in Kyiv. The amendment would also give the president the right to appoint heads of Kyiv district administrations. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.con
Æ5 the Constitution, want to make sure that everything in this country is done legally. Well, imagine a different case, where I would sue the housing regulator body BTI of Obukhiv region outside Kyiv using any excuse, and the court will recognize that Khoroshkovsky’s own home should be taken away from him and given to someone else. It’s the same sort of absurdity. For some reason, the court decision that was made public said that we have no right to broadcast not just on the frequencies we recently received, but on those that had been received in previous tenders. The court found no guilt of ours in the process, but our licenses were taken away, despite European legal practice. This is censorship. Those who are doing it understand that the famous journalists Vitaliy Portnikov, Roman Skrypin, Volodymyr Pavliuk, Artem Shevchenko and many other colleagues cannot be told to keep silent about something or call white black. That’s why they’re trying to call this conflict a business dispute. But where is business here? Khoroshkovsky alleges that his company does not need these frequencies, and they will not take part in another tender for our frequencies should one take place in the future.
Æ With media muzzled, who will dare to challenge the rulers? And he’s right. In Vinnytsya region alone his TV channel Inter has more frequencies than those 33 we had won in the whole of Ukraine. What they need is to keep us silent. That’s because we call white white rather than black, but are prepared to let those speak who think otherwise. Following us, all the others can be closed down and controlled. Khoroshkovsky has persisted that there is nothing bad about a businessman with a clear conflict of interests heading the SBU and appointing judges as a member of the High Justice Council. He has maintained
that nowhere in the world is business separated from politics, and that his staff [at the SBU] has never called anyone in for “preventative chats” based on political motives, and that the SBU had not tailed journalists, myself included. When the country has just one holding that belongs to Khoroshkovsky, nobody will dare to ask whether the government is being honest, whether it steals the people’s money and nobody will doubt the reported growth of welfare of the Ukrainian citizens due to the wise policy of those in power. And the main thing is, this sort of country will have no chance to join Europe, and you can forget about European values. There will be no need for a democratic election, the opposition can be destroyed for having done what the government dreamt of doing, and those in power can finally become truly and really rich – together with their colleagues. And then, after the responsibility for everything will be placed on the obedient Viktor Yanukovych, someone rich and powerful can actually ascend to rule the country, and then find an obedient heir. Everything needed for this plan is in place: the secret police, the media and courts. Mykola Kniazhytsky is director of TVi channel.
Court rules that frequencies of TVi, Channel 5 received illegally Æ14 casting as a national informational channel,” Tetiana Malashenkova, the Channel 5 lawyer, said. Theoretically, the management of the broadcaster can apply to the Council on Television and Radio again and request merging of the licenses back to one channel, but nobody believes that the current composition of the Council (where most of members are loyal to the pro-presidential parliamentary coalition) will satisfy this claim.
Both channels are preparing to contest the appeals court ruling in the High Administrative Court and in the European Court of Human Rights. In the decision, the judges also requested that the general prosecutor’s office start criminal proceedings against the five members of the council who, in their view, awarded the frequencies illegally. That would be a case being opened against Andriy Mirohnychenko, Yuriy Plaksiuk, Viktor
Ponedilko, Tetiana Lebedeva and Tetiana Mokridi. However, the prosecutor’s investigators examined the issue a couple of months ago, but found no ground for starting a criminal case. Lawmaker Andriy Shevchenko, who used to be the chief editor of Channel 5 in 2005, says the council has to repeat the license competition and award the frequencies in a lawful manner. Staff writer Olesia Oleshko can be reached at oleshko@kyivpost.com
Chow: Government’s bungling in energy sector costs nation dearly Æ4 pects, chemical plants, nuclear power and other assets are on offer for reintegrating key Ukrainian industrial sectors with Russia. Mixed-up bundles will become ever larger with even greater “discounts” and economic valuations decipherable only to insiders. Meanwhile, the Ukrainian government appears startled by recent discoveries. Last week Prime Minister Mykola Azarov belatedly recognized that the pricing formula for the gas supply agreement with Russia is unfair. At the same time, energy minister Yuriy Boyko was in Moscow asking for a minimum volume guarantee from Gazprom under the gas transit agreement. Such major defects were highlighted by numerous observers immediately after the January 2009 agreements were concluded. Yet the new Ukrainian authorities not only reaffirmed the terms of these bad agreements in April by merely adding a short addendum – thus relinquishing objections they rightly raised during the presidential campaign – they also provided their
own guarantee to buy 40 billion cubic meters of gas per year for the remainder of the 10-year term. This volume is higher than what Ukraine will have imported annually in 2009 and 2010, thereby belying the government’s stated objectives of improving energy efficiency and increasing domestic gas production. Simultaneously the Ukrainian government is busy working to settle an arbitration case with RosUkrEnergo (RUE), a gas trader 50 percent owned by Gazprom, over what was judged to be unlawful taking of 11 billion cubic meters of stored gas during the 2009 crisis settled by Putin and Tymoshenko. Since Boyko was a founder of RUE’s middleman role when he was Naftogaz head in 2004, this controversy could not have escaped his attention. Suffice it to say that billions of dollars are at stake and Ukrainian taxpayers are faced with the real possibility of paying for some of the same gas twice because of the negligence or incompetence of their government officials, past
Æ Average Ukrainians may pay twice for same 11 billion cubic meters of natural gas and present, to the benefit of private interests. So a reasonable question is why such critical issues as proper gas pricing formula, gas transportation volumes and RUE settlement were not essential
elements of the grand bargain struck in Kharkiv in April. Was the bundling of disparate items bungled or deliberately opaque in order to obscure? Will we see more sweetheart deals? The Ukrainian public that suffers from non-transparent operations of the energy sector and improper use of state assets has the most to lose. It should also matter to international creditors, starting with the International Monetary Fund. The Ukrainian public that suffers from non-transparent operations of the energy sector and improper use of state assets has the most to lose. It should also matter to international creditors, starting with the International Monetary Fund. To date the Ukrainian government has invested little of its own political capital to explain to the public why a 50 percent increase in gas utility rates is beneficial for the country’s development other than to say that it is required by the IMF under the new standby loan of $15.2 billion. Without
public education and broad-based political support, long-delayed energy sector reform and urgently needed restructuring of Naftogaz cannot be sustained. The government may just be kicking this can of worms down the road as other Ukrainian governments have repeatedly done in the past. It can only be hoped that IMF will hold the Yanukovych administration to task better than it did with ex-President Viktor Yushchenko and Tymoshenko. So far, Western governments with their own important relationships with Russia and Ukraine have been conspicuously silent on these energy shenanigans, dazed perhaps by their speed and audacity. They are faced with an old question best formulated by Marx – the brothers, not Karl. To paraphrase, who are they going to believe, Moscow and Kyiv or their own eyes? Edward C. Chow is a senior fellow in the energy and national security program of the Center for Strategic and International Studies in Washington, D.C.
Lifestyle Play | Food | Entertainment | Sports | Culture | Music | Movies | Art | Community Events
Summer holidays end as bells ring. Column on page 24 and photo story on page 25.
September 3, 2010
Artistic oddities at Gogolfest
Food Critic BY MARK RACHKEVYCH H .CO CO C OM RACHKEVYCH@KYIVPOST.COM
Editor’s note: Eating out in Ukraine is a gamble. To bring you honest food reviews, Kyiv Post writers go to restaurants unannounced, pay for their own meals and never accept favors from restaurateurs.
Al Faro offers a warm, slowpaced trattoria experience
B Y I RY N A P RYMAC HYK PRYMACHYK@KYIVPOST.COM
Gogolfest has been Ukraine’s attempt at making contemporary art prestigious. For the fourth straight year, it will be gathering artists and art lovers in Kyiv on Sept. 4-12. Vladyslav Troitsky, the festival’s organizer and theater director, said networking is as important here as any other aspect. “Well-educated youth who read good books, watch good movies and listen to good music are still outnumbered in Ukraine. Gogolfest is a unique place where these people can meet and look into the eyes of other intelligent people, as well as advance develop Æ23
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Spanish urban theatre La Fura dels Baus, presenting ‘Imperium’ female show, opens Gogolfest.(AFP)
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Entering Al Faro (lighthouse in Italian) is like stepping inside a provincial Italian veranda somewhere in Tuscany. Spacious and cozy, the light spring colors of the interior radiate a warm energy that immediately sets the tone for this causal trattoria-style Italian eatery. You’re pleasantly greeted and asked to choose which common table you’d like to sit at. Appropriately, the tables don’t have silverware and flatware already laid out collecting dust and other undesirables, a common hygienic mistake too many Kyiv restaurants commit. The menu draws from traditional classic Italian cooking, with a focus on shared appetizer platters, modest but plentiful pastas, fresh salads and inventive pizza. And by tradition, the service was genuinely friendly, there is a wood burning brick oven, two types of olive oil (spicy and regular) and balsamic vinegar standing on your table that makes you feel like you’re a welcome member of the famiglia. The vino list has a nice blend of old and new world wines and is very reasonably priced. And by reasonable, I mean from Hr 110 to Hr 900 per bottle. An average 150 milliliter glass of wine hovers around Hr 35. The emphasis seems to be on building a steady clientele rather than on haute cuisine. A glass of semi-dry Chianti Ruffino (Hr 30) and mug of Stare Misto (Hr 21) beer was ordered to go with the cheese plate (Hr 85). Although it was not specified on the menu, my dining partner and I surmised it contained gorgonzola, goat cheese, sharp mozzarella, parmesan, provolone and spiced parmesan garnished with a small puddle of honey, sliced grapes and walnuts. It was a perfect starter for cheese lovers. What escaped us was why it took 30 minutes for our appetizer to arrive and when it did, it came with the other entrees we ordered that slowly cooled as we dug into the cheese plate. Nevertheless, the Caprese salad (Hr 55) was garden fresh with healthy slices of buffalo mozzarella and tomatoes sprinkled with basil and other Italian herbs, and delicately coated with olive oil. Our 45-centimeter Alla Æ24
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September 3, 2010
(Courtesy photo)
Miss Ukraine beauty pageant
The gossip has barely died down after the recent Miss Universe pageant, in which a Ukrainian beauty landed in the top five and made news in support of the airport full-body scanner. Yet it’s time for a new beauty contest. Kyiv’s main concert hall, Palats Ukraina, will host the annual Miss Ukraine competition on Sept. 4. Gorgeous participants from all 26 regions of Ukraine will flock to the capital to compete for a diamond crown worth 250,000 euro and, of course, for the prestigious Miss Ukraine 2010 title, which will give them the right to represent the nation in the world and European contests next year. The jury will be composed of international stars this year, including socialite Paris Hilton (arrested on Aug. 27 on cocaine charges), the aging but cool macho actor Jean-Claude Van Damme, desperate housewife Eva Longoria and Francesca Versace, who is the niece of the famous Italian fashion icon, Donatello Versace, among other celebrities. All 19 former winners of Miss Ukraine will be there, including 1998 winner Vlada Prokaeva, 2001 winner Oleksandra Nikolaenko, 1997 winner Ksenia Kuzmenko and 2008 winner Iryna Zhuravska. At the show’s after-party in Kyiv’s Crystal Hall night club, Hilton will perform her most recent songs, and will hang out all night long. Ukraine Palace concert hall (Palats Ukraina) (Kyiv, 103 Chervonoarmiyska Street), Sept. 4 at 7:30 p.m. Tickets: Hr. 100-1,000. For more details, see: www.missukraine.org.ua
Sept. 4
Sept. 4 - Oct. 1
(Courtesy photo)
Dinosaurs on Kyiv hills
The World of Dinosaurs exhibition is coming to Kyiv on Sept. 4, and will stay here through the beginning of October. Some 50 pre-historic animals’ skeletons, some up to six meters tall and over 20 meters long, will be set on four hectares of the Pechersk Landscape Park (Spivoche Pole). The unique Austrian exhibition has already traveled to Germany, Czech Republic, Croatia, Hungary, Slovakia and Slovenia. Besides watching dinos peacefully grazing or hunting prey, one could also touch some of the exhibits and even ride them. Stegosauruses, diplodocuses, iguanodons, exotic birds, mammoths and bears will be displaying their habits on the Kyiv lawns, grazing and moving and growling. Neanderthals, who lived around here before homosapiens, will also be exhibited. Apart from the exhibits, organizers promise many children's activities. Pechersk Landscape Park (Spivoche Pole) (metro Arsenalna, near Kyiv Pechersk Lavra), Sept. 4 – Oct. 1. Open daily from 10 a.m. till 8 p.m. Tickets: Hr 40-60.
Sept. 11
Ideas worth spreading at TED conference If you have, or like to hear, ideas worth spreading, head for a TED. The acronym is deciphered as Technology, Entertainment, Design, and sums up the basic topics in discussion at any given TED event. Kyiv will host its third one on Sept. 11, and it will deal with art. Traditionally for all TED gatherings, 10 Ukrainian speakers will be given 20 minutes each to share their ideas. The list includes artists, writers, musicians, publishers, art journalists, culture scientists, and architects. Around 150 guests are expected to attend the event. Originally founded in the U.S., TED has grown to be a network of global importance, used as a vehicle for sharing ideas. Many of the talks are available online. The first TED in Kyiv was held in October 2009. Seven speakers talked about pressing issues facing Ukraine today. The second conference took place in April. It was dedicated to nanotechnologies, new education technologies, the state and future of art, music and sculpture. It was attended by 200 visitors. All TED events in Kyiv are recorded and then placed on You Tube as well as the conference’s website (http://tedxkyiv.com), in line with the network’s motto “Ideas worth spreading.” Dovzhenko film studio (44 Prospekt Permohy, by Shulyavska metro station), Sept. 11 at 1 p.m. Admission is free upon registration on the website tedxkyiv.com
(Courtesy photo)
(Courtesy photo)
18 Lifestyle
Sept. 9-12 in Koktebel, Crimea or Sept. 7 in Kyiv
Jazz in Koktebel or Kyiv Just like the summer, open air festivals are coming to an end. But this year’s September is ringing with jazz. Jazz fans should soon be buying train tickets to Ukraine’s most famous and biggest open-air jazz festival. Held since 2003 in Koktebel, Crimea, it annually gathers around 30 famous jazz artists from all over the world, who come to perform its two stages working 24 hours a day. For four days, starting Sept. 9, the festival lineup features virtuoso American drummer Al Foster, Karl Frierson, the voice and soul of old-time “DePhazz”, modern Berlin’s Carsten Daerr’s Trio, Scandinavian melodies from the Faerd trio and Jullie Hjetland, Ukraine’s Oleh Skrypka, leader of the popular alternative rock band Vopli Vodopliasova, Kyiv ethno band ‘Dakhabrakha’ which was a part of the project ‘Mystic Ukraine’ by Gogolfest’s producer Vladyslav Troitsky and many other interesting solo artists and bands from Ukraine, Russia, Belarus and Austria. To reach the festival site, you can take a train or plane to Simferopol, or a train to Feodosiya and then get a bus or car to Koktebel. Those who are stuck in Kyiv needn’t despair, though. They could still enjoy ‘Jazz in Kyiv,’ another festival. ‘Lush Life’ from Kyiv and Belarus trio ‘The Outsiders’, winners of Moscow International ‘Usadba Jazz’ festival will entertain listeners on Sept. 7 at Kyiv’s Dovzhenko film studio. Koktebel Jazz Festival (Koktebel, Crimea, 20 kilometers from Feodosia), Sept. 9-12. Tickets: from Hr 50- 150. Details: www.koktebel.info, www.koktebel.info/en/ Jazz in Kyiv (Dovzhenko film studio, 44 Prospekt Permohy, near Shulyavska metro station), Sept. 7 at 8 p.m. Tickets: Hr 50. For more details, see: www.jazzinkiev.com
Compiled by Iryna Prymachyk
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Movies ‘IRISHFEST’ SHORT FILMS FESTIVAL Languages: Celtic, English ‘Original Irish’ short films in Celtic: • Villains directed by Thomas Cosgrave • The Secret Language directed by Brian Durnin • The True Gaels directed by Macdara Vallety • (Feileachan) Driving Lesson directed by Cecila McAllister • The Helpless Creature directed by Peter Foott • Fluent Dysphasia directed by Daniel O’Hara ‘Irish mirror’ documentary and animation films: • Undressing My Mother directed by Ken Wardrop • Uselles Dog directed by Ken Wardrop • OUCH! directed by Ken Wardrop • Scoring directed by Ken Wardrop • Contagious directed by Ken Wardrop • The Herd directed by Ken Wardrop • Dublin 1 directed by Jason Tammemagi • A Film From My Parish — Six Farms directed by Tony Donoghue • Please Say Something directed by David O'Reilly • Not There Yet directed by Jason Tammemagi • Penguin Space Program directed by Jim Cullen • Piligrim directed by Matthew Darragh • Trolley Boy directed by Teemu Auersalo • A Day in the Life of Richard directed by Declan de Barra • Ding Ding Denny's O'Reilly History of Ireland directed by Cathal Gaffney ‘Irish Joke’ short comedies: • The Carpenter and His Clumsy Wife directed by Peter Foott • Oxygen directed by Peter Sheridan • Boris directed by Stephen Burke • The Family Tree directed by Peter Murphy and Rachael Moriarty • Mr. Foley directed by D.A.D.D.Y.
Seven Days 19
September 3, 2010
Live Music • Kelvin Kind directed by Ian Power • Maybe if you directed by Michael McGudden • Separations Agency directed by Shane Martin • Three Minute 4play directed by Johnny O’Reilly • Dental Breakdown directed by Ian Power • Teeth directed by Ruairi O’Brien and John Kennedy • The End is Night directed by James Cotter • A Clown’s Requiem directed by Jason Forde Experimental Irish films: • Butterfly Lights directed by Donal O’Ceilleachair • The Faeries of Blackheath Woods directed by Ciaran Foy • Fall directed by Patrick Jolley • Frankie directed by Darren Thornton • Hereafter directed by Peddy Jolley, Inger Lise Hansen and Rebecca Trost • If I Should Fall Behind directed by Morgan Bushe • Jericho directed by Liam Gavin • Killing the Afternoon directed by Margaret Corkery • Snakes directed by Paddy Jolley • Silver Lining directed by Kealan O’Rourke Sex’n’Irish program: • Shaving the Baby directed by Frances Roe • The White Dress directed by Vanessa Gildea • New Boy directed by Steph Green • Sunburn directed by Jennifer Keegan • Runners directed by Rob Burke and Ronan Burke • Colder directed by J.J. Harrington • Last Night directed by Connor Morrissey • Atlantic directed by Conor Ferguson • The Basket Case directed by Owen O'Neill • Questions directed by Mark Noonan
The star of Russian rock Boris Grebenschikov to play at Docker Pub on Sept. 9, but no information of tickets yet.
ZHOVTEN 26 Konstyantynivska, 205-5951, www.zhovten-kino.kiev.ua ‘Irishfest’ short films festival Sept. 3, 6 – 10 at 6:15, 8:00 p.m., Sept. 4-5 at 4:25 p.m., 5:55 p.m. and 7:40 p.m. Om Sara Sept. 3 – 10 at 1:10 p.m., 7:50 p.m. Precious Sept. 3 – 10 at 3:25 p.m., Sept. 4-5 at 11:30 The Vanishing Point Sept. 3 – 10 at 6: 25, Sept. 3, 6-10 at 3:00 p.m., Sept. 4-5 at 1:10 p.m. • The Garden of Ireland directed by Ciaran Deeney OM SARA Language: Swedish Drama (2005) Directed by Othman Karim Starring Linda Zilliacus Sara is in her early 20s and lives in Malmo, in the south of Sweden. Her father is dead, and Sara has to put her mother into a hospital. Her boyfriend Kalle is a celebrated soccer player and likes the high life fame brings. Sara, however, wants to study and work. Despite clearly different life goals, they marry, only to split up later. The job is also in the way of her next big relationship. Failing to get a proper man in her life, Sara decides to have a baby, not necessarily being married. At this stage, she falls for a carpenter working on her old house. Is she getting desperate or love conquers it all? The film was awarded at Moscow International Film Festival.
See www.kyivpost.com for information on Precious and The Vanishing Point movies, as well as complete live music listings.
ART CLUB 44 44B Khreshchatyk, 279-4137, www.club44. com.ua Concerts traditionally start at 8 – 10 p.m. Sept. 3 Crazy Friday: Legkiy Flirt, Hr 50 Sept. 4 Raving Saturday: Red Rocks, Hr 50 Sept. 5 Iowa Super Socker (Poland), Singleton, Hr 50 Sept. 6 JTFresh, free admission Sept. 7 Autumn Jazz Nights: Sax Battle Bogdan Gumeniuk vs Viktor ‘Zedan’, Hr 50 Sept. 8 Carsten Daerr Trio (Germany) Sept. 9 Balkan Party, Hr 20 DOCKER’S ABC 15Khreshchatyk, 278-1717, www.docker. com.ua Concerts traditionally start at 9:30-10 p.m. Sept. 3 Red Rocks, Angie Nears, Hr 50 Sept. 4 Tabula Rasa, Chill Out, Hr 70 Sept. 5 Vostochny Express, free Sept. 6 Animals Session, free admission Sept. 7 Tres Deseos Latino Party, Hr 20 Sept. 8 Rockin’ Wolves, Hr 30 Sept. 9 Partizanskie Vytivky, Hr 30
DOCKER PUB 25 Bohatyrska (Heroyiv Dnipra metro), www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. Sept. 3 Antitela, Tex-Mex Company, Hr 70 Sept. 4 More Huana, Hr 70 Sept. 5 Angie Nears, free admission Sept. 6 Red Rocks, free admission Sept. 7 Second Breath, free admission Sept. 8 The Magma, free admission Sept. 9 Boris Grebenshchikov & Aquarium Other live music clubs: BOCHKA PYVNA (19A Khreschatyk St., 459-0551 and 4B-1 Khmelnytskoho, 3906106, www.bochka.com.ua) PORTER PUB (3 Mazepy, 280-1996, and 10 Marshala Rybalko, 483-7150, www.porter. com.ua). JAZZ DO IT (76A Velyka Vasylkivska (Chervonoarmiyska), 599-7617, http://jazzdoit.com.ua/). DRAFT (1/2 Khoryva (Kontraktova Ploshcha metro), 463-7330).
Compiled by Iryna Prymachyk and Svitlana Kolisnyk
20 Lifestyle
The island of Samos: A Greek vacation off the beaten path BY A L E X A N D R A MATOS HKO ALEX.RICHIE@GMAIL.COM
The 35-degree heat wave that held Ukrainians captive for several weeks this summer was, naturally, considered extreme. In Greece, the same exact temperature is just the summer average. And that’s precisely the reason why they found a way to deal with it a long time ago. Every August, Athens, and many other big cities of mainland Greece grow virtually empty and quiet, as the majority of the population boards planes and ferries and escapes to the islands. Greek islands are many, but if you walk into your closest travel agency in Kyiv and inquire about offers, you’d most likely hear names like Crete, Corfu and Rhodes. But if you want to
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September 3, 2010
feel the vibe of Greek summer the way locals do, one of the best places for that is Samos Island.
The island Samos is located in the northeast part of the Aegean Sea, close to the Turkish coast. The Mycale Strait, separating the island from Asia Minor, is only 1.2 kilometers wide in its narrowest part, offering you a full view of the foreign shore. But this is also the reason why there are more than 10 military compounds located on the island. With an area of over 450,000 square kilometers, Samos is the eighth largest Greek island, with a population of 33,000. Its landscape includes plains and lush pine forests a step away from the seashore lined with palm trees. But hills dominate the island. Thin, serpen-
Watching the sunset at Potami beach is a perfect finale to a day of sunbathing, swimming and drinking Mojitos at the local Hippy’s bar. (Olivier Dovelos)
ÆIf you want to experience a vacation in Greece the way locals do, head for the islands like Samos. It’s full of beauty, character and history tine roads weave among them, past vineyards and olive groves, occasional villas and abandoned old houses, leading to towns and villages, and a great number of beautiful beaches with crystal clear water. To get to this beauty from Athens will cost you 120 to 200 euros by plane, while a ferry ride is 40-45 euros. There are plenty of hotels, from small,
family-run ones starting at 40 euros for a double room to five-star seaside resorts such as Doryssa, where an average room is 150-200 euros. Shop assistants and waiting staff in most places speak at least some English. Samos is known as the birthplace of several famous ancient Greeks, including philosopher and mathematician Pythagoras (570-495 BC). This
September, the island is expected to turn into a Hollywood filming site for “Pythagoras: The Gates of Light,” with the title role to be played by John Malkovich, and the cast to include Gerard Butler, Ben Kingsley and Penelope Cruz.
Getting around When I visited the island, I resided in the capital Samos, locally known as Vathy, the name of the local port. The airport is located 112 kilometers away. Vathy is a long bay, with the city built along the shore. Here, as in the rest of the island, the buildings are characteristically white with orange-tiled roofs, and are very unlike the typical white-and-blue look you can encounter in cities and villages of other Greek islands. Æ21
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A Greek vacation on Samos Island means treasures, beaches, parties Æ20
This is due to Samos having once been a part of the Byzantine Empire and later an autonomous principality, joining Greece only in 1912. In the older part of town, houses are clustered close together, separated by narrow roads with hardly any sidewalks and barely enough space for two cars to pass at the same time. However, you can still take a relaxed walk along the boulevard running along the Vathy quay, or sit on one of the benches facing the sea. Just 32 kilometers from Vathy lies Karlovassi, the island’s second port town, which resembles a ghost town due to numerous semi-ruined or abandoned factory buildings. But the place is actually very lively . There is an 11th century chapel of Metamorphosis located close to the city, as well as waterfalls in a beautiful forest opposite Potami beach. Meanwhile, in the coastal fisherman and sailor town of Pythagorio, you can still find ancient walls that protected the town as well as the ruins of Polikratis fortress. This is also the place where one of Samos’ must-see sites is located, the Eupalinian Aqueduct . Constructed in the 6th century B.C. under the rule of tyrant Polycrates, the one-kilometer aqueduct is named after engineer Eupalinos, who led the digging of the tunnel through Mount Kastrom to supply Samos’ ancient capital with fresh water. The earliest tunnel in history to be dug from both ends, it’s considered a masterpiece of ancient engineering. Other Pythagorio sites include Spiliani cave, with a chapel of Agios Georgios at its entrance, Likurgos castle and a church of Metamorphosis. A short drive from Pythagorio is the town of Hereon, named after goddess Hera, the wife of the principle Greek
Lifestyle 21
September 3, 2010
The ruins of the Temple of Hera – Hereon of Samos – is a UNESCO World Heritage Site, and one of the island’s must-see sites. (Olivier Dovelos)
ÆFestivities often start late and last until dawn as revelers slip into relaxed routine of daytime sleeping followed by robust nightlife at numerous clubs god, Zeus. Near the city you can see the remains of the temple of Hera – Hereon of Samos . A motorbike or car is the best way to get around, since public transport is virtually nonexistent on the island. Greeks from the mainland usually bring their own vehicles with them by ferries, while everyone else has numerous local rentals at their disposal.
Daytime Samos One of the defining elements of relaxed life in Greece is frappe, an iced coffee drink. An entire book, “Frappe Nation� by Vivian Constantinopoulos and Daniel Young, was written about it. Of course, it’s not only about Frappe – you have a choice of other drinks such as Frozen Espresso, Cappuccino Freddo and sweet milkshake-like coffee cocktails such as Chillino and Freddito. But whatever you choose to drink, it’s all about how you drink it – sipping slowly, with pauses for conversation. Staying in Vathy, I had only one beach option within walking distance – Gagou. The drinking place I frequented was the Navagos lounge bar at the rocky Tsamadou beach. Here one can choose between crashing on a sun bed near the water, or hanging out at the outdoor bar, equipped with sofas and armchairs, woven sun beds, a hammock and even a double bed. I liked to hit Platanaki, a small beach in a tranquil bay at the edge of a green
hill. For a more party-like atmosphere, there is the long pebble beach Potami in Karlovassi. Here, look for Hippy's bar and order a delicious Mojito. And for a classical sandy beach experience, take a trip to Psili Ammos, seven kilometers from Vathy. The sea here is very shallow.
Nighttime Samos The traditional night out on the island starts late, around 10 p.m., when the sun is down and the heat is off. Parents with children flood the central square in Vathy, while the surrounding cafes and taverns fill up with visitors. My favorite place to start is Neon, near the square. Here you can have grilled octopus (my personal favorite) with the most popular Greek alcohol – ouzo (Samos produces three of its own brands), usually drunk on the rocks and with some water. Other popular drinks include Tsipuro, which is similar to ouzo but less sweet, and Retsina, the Greek wine. Make sure to try Samos’ very own famous sweet wine. Another good choice for a seafood dinner in Vathy would be Artemis tavern. But the best seafood on the island is to be found at Psili Ammos tavern on the beach of the same name. Nightlife on Samos is not exactly wild, but each town has a selection of fun clubs. Vathy has four riverfront clubs near the port. Mezza Volta is a
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The quay of Vathy – Samos’ capital and main port – with its palm trees, low buildings and the blue sea glistening in the sun, provides a warm welcome to the island. (Olivier Dovelos)
music bar. Pupa and Ble (Blue) are traditional Greek discos with Greek pop music played loud. I frequented Escape. Music here ranges from pop to reggae, house, to hip-hop and rock. Starting late, the Greek party night often lasts until dawn, when you slowly
stumble back to your room to sleep it off and get ready for another day of the Samos vacation experience. Alexandra Matoshko is a former Kyiv Post editor now living in Athens, Greece. She can be reached at Alex.richie@gmail. com.
22 Lifestyle
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September 3, 2010
Mountain hideouts sheltered Ukrainian freedom fighters BY M A R K R AC H K E VYC H RACHKEVYCH@KYIVPOST.COM
The mountainous terrain of IvanoFrankivsk Oblast in western Ukraine is nowadays a haven for pleasure-seeking hill walkers, berry pickers and wild boar hunters. But in the middle of the last century, the hills provided shelter for Ukrainian partisans fighting against Soviet occupation. These guerrillas would often live for weeks in hideouts high in the Carpathians. Some of these safe houses are wellpreserved, restored and accessible at the end of a pleasant hill walk, taking in stunning views and providing a glimpse into one of the most violent chapters in Ukraine’s history. Ivano-Frankivsk Oblast was the site of heated battles in 1944-5, as Ukrainian freedom fighters descended from the mountainous terrain to launch attacks on Soviet-occupied towns. Fighting continued well into Lutsk
the 1950s, pitching fighters from the Ukrainian Insurgent Army, or UPA, against the Soviet NKVD, the forerunner of the KGB. Located in the Black Forest, 63 kilometers southwest of Ivano-Frankivsk on the edge of the village of Maksymets is a typical example of a bunker where partisans hid out. Colonel Mykola Tverdokhlib, a regional UPA commander whose nom de guerre was Hrim, or Thunder, spent the winter of 1953-4 here with five other fighters before they were discovered by the NKVD. The road leading to the village is rough after being battered by floods last year, but the scenic view more than compensates as you drive along the Bystrytsia River. At the edge of Maksymets (but before reaching Bystrytsia village) a wooden bridge leads to a small farmstead community. The hunter’s trail that snakes up Berezovachka Mountain
Ivano-Frankivsk
Rivne Zhytomyr
Lviv Ternopil
Kyiv
Khmelnytskyy Vinnytsya
Ivano-Frankivsk Uzhgorod Chernivtsi
Solotvyn
Nadvirna
Maksymets village (trail begins from this village)
Chilly and damp three meters below ground, the partisans had only one entry, through this wooden hatch down a log ladder, camouflaged with soil and moss. (Volodymyr Obrazyuk)
to the bunker is only accessible from a yellow-colored house that belongs to the Yaremchuk family. Tell the Yaremchuks: “My do bunkera Hroma!” or “We’re going to Thunder’s bunker,” and they’ll let you through, offering water and other last-minute supplies. The route to the underground hideaway is three kilometers of hill walking – reaching 1,300 meters above sea level – and lasts around two hours, depending on how fit you are. The local Hutsuls – a people who live in the Carpathians – brag that they can make the hike in just under an hour. The descent takes around 45 minutes. The initial ascent is part of a mountain range called Verkh Berezniy, or Birch Summit. It’s steep and will last about twenty minutes before you reach a field with a gazebo that wild boar hunters use as a resting place. Another 10 minutes of walking along the path will take you to the first of three rock fields along the slope of the mountain. The views of the surrounding mountains, forest lines and idyllic villages are breathtaking. The best view is from the third rock field, 1,200 meters above sea level. Once you’ve left the last rock field behind, you’ll re-enter the forest
in a steep ascent until you reach Berezovachka field where a shepherd’s cottage is located. The bunker you’ll soon see was so well hidden that the local shepherd never noticed it. Its location was only revealed by one of its occupants, Luk Hrynishak, a partisan lieutenant, who Tverdohklib had dispatched in May 1954 after the winter to establish contact with a partisan guide in the nearby town of Yaremche. He was caught by NKVD agents, and was tortured until he revealed where his hideout was, leading to the capture of Tverdokhlib, who had eluded the Soviets for 12 years. Walk past the wooden cottage along the grassy field toward the top of Berezovachka Mountain. You’ll see three trails that eventually merge into one south of the glade, where you’ll pass an old rock trench dating to World War I that was used by the Austrian-Hungarian army to meet the advancing Russians. One hundred meters past the trench you’ll see Tverdohklib’s bunker, marked by a memorial plaque and black and red flag. Lift the wooden hatch and climb three meters down the ladder into the corridor using a flash light or head-
November 6, 2010 The Ukrainian Chamber of Commerce and Industry (33 Velyka Zhytomyrska Street)
Employment Fair 2010 Inspired professional – a key to your business success! If you want to be included into the Employment Fair 2010, please contact advertising department at advertising@kyivpost.com or by phone 044 234-6503 For more information please visit: www.kyivpost.com/projects/employment
Ukrainian Insurgent Army Colonel Mykola Tverdohklib eluded Soviet forces for 12 years until being caught in a bunker in the Carpathian Mountains by Soviet NKVD secret police in spring 1954. He and his wife committed suicide instead of surrendering, common for antiSoviet fighters who didn't want to be tortured or killed by their captors.
lamp, which leads into a room measuring three meters by four meters. Six people wintered on two-tiered bunk beds. In the middle is a table where they listened to a radio and read literature to keep in touch with what was happening in Ukraine and the world. They had access to underground water, a small stove and a toilet, and kept food, kerosene and tools inside a closet leading from the main room. Flooring was made of rocks that easily let in air so the room never felt stuffy. The bunker had a doublelayered roof made from timber logs to keep snow from sinking in. Tverdohlib and his wife completed the bunker in September 1953 after thoroughly scouting this area and working at night while using a handsaw covered with a towel. They camouflaged the bunker with soil and moss. Almost 60 years later, the hideout was refurbished by the Student Brotherhood, a youth nonprofit, in 2004. Those who make the climb get a feel for the rough terrain that inhabits the mountains and a historical tidbit at the end of a long trail. Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com.
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Lifestyle 23
September 3, 2010
Gogolfest at a glance
Kyiv’s female band Dakha Brakha performing at Gogolfest in 2009. (Yaroslav Debelyi)
Here are some of the more unusual or curious performances from the massive schedule of events. For a full schedule, please visit http://www.gogolfest.org.ua/eng. What ‘Multiverse’ show by Kyiv theatre Dakh and Spanish urban theatre La Fura dels Baus
Hit Gogolfest for modern art and theater Æ17 ones’ knowledge,” Troitsky said. “What we try to create here is not alcoholic lawlessness but an altruistic atmosphere of both intelligence and festivity at the same time.” Named after the legendary writer Nikolai Gogol, whom both Russia and Ukraine claim as their own, the festival brings together all forms of art, including theater. Last year it gathered about 800 artists from 25 countries, and an estimated audience of 150,000. This year the number of visitors is expected to reach 250,000. The festival will produce its own newspaper in three languages – Ukrainian, Russian and English – to provide spectators with a schedule of events and introduce them to performers and artists. The festival will feature plays produced by Ukrainian, Russian, Italian, Spanish, Swiss and Hungarian theaters, as well as classical and electro-acoustical modern music, 20 dance parties and live concerts, 15 video and sound installations and performance acts, and non-fiction, art house and documentary movies, literature master-classes and meetings with Ukrainian writers. One of the major events of Gogolfest’s program will be its grand opening at Independence Square (Maidan Nezalezhnosti) on Sept. 4. Organizers expect 200,000 viewers to attend the joint show program called ‘Multivers’ by Troitsky’s theater Dakh and Spanish urban theatre La Fura dels Baus. What: Gogolfest-2010 Where: Dovzhenko film studio (44 Prospekt Peremohy, near Shulyavska metro station), Sept.4-12. Admission is free. Theater tickets: up to Hr 50. The full program of the festival is available at: www.gogolfest.org.ua/eng/program
Since 1979, Barcelona’s La Fura dels Baus has made some 2,500 performances and shows all over the world and is famous for its use of unusual settings, blurring of the boundaries separating the audience and actors. For the first time in Ukraine, more than 100 people will take part in the show, creating a huge ‘human net’ wheel that is supposed to symbolize the universe moving around. The rest of the shows and exhibits will take place at Dovzhenko film studio on Prospekt Peremohy in Kyiv. The festival could not take place in its usual location, Mystetsky Arsenal in the heart of Kyiv, across the road from Pechersk Lavra. The official reason was because the structure is undergoing reconstruction, and the organizers found out about it just two months before the event was scheduled to start. “Gogolfest might not have happened at all this year,” says Troitsky. “You know, it’s not a done thing to change the location two months before the event. At least, it’s not something that happens to major artists who make their schedules a year ahead and who were about to come to Ukraine. This time many of them simply refused because of that change.” Troitsky has major plans for his festival in the future: to organize it in six other cities of Ukraine. “Next year … our team [of some 30 people] will make its best effort to spread the festival atmosphere throughout Ukraine.” He is also planning to open a 24-hour club on Mykhailivska Square in Ocotober called “The dead souls” after one of Gogol’s novels, for actors, writers and musicians. Kyiv Post staff writer Iryna Prymachyk can be reached at prymachyk@kyivpost. com.
ÆGogolfest has ambitions to branch out to six more locations next year
When
Where
Why
Sept. 4, 9 p.m.
Independence Square (Maidan Nezalezhnosti)
A massive show with 100 participants, creating a living “human wheel” meant to symbolize the universe moving around
Room Pieces sound installations by Michael Schumacher, a composer, from New York
Sept. 5-7 at noon
Dovzhenko film studio
Multi-channel sound installations that are supposed to demonstrate how sounds occur in the real world, some loud, some soft, some near, some far, some disturbing, some persistent, some abrupt.
Docudays UA
Sept. 5, 2 p.m.
Dovzhenko film studio (cinema)
Featuring beast human rights documentaries from Ukraine’s ‘Docudays UA’ festival
Music from Kimmo Sept. 5, Pohjonen Kluster (Finland) and Kyiv’s 9 p.m. DakhaBrakha
Dovzhenko film studio (concert stage)
Kimmo Pohjonen and electronic percussionist Juuso Hannukainen should make a curious combination with the Ukrainian female vocal group Dakha Brakha
Animation.by
Sept. 7, 5 p.m.
Dovzhenko film studio (cinema)
Animation shorts from Belarus Spring 2010
Room sketch by Moscow Museum of Modern Art
Sept. 7, 7 p.m.
Dovzhenko film studio
Interactive performance involving drawing and sounds. A big sheet of white paper is placed on the floor, and the performers use it for drawing and producing sonic effects.
Children of the Otter
Sept. 9, 7 p.m.
Dovzhenko film studio (concert stage)
This is an opera, written by the renowned Russian composer Vladimir Martynov and based on Siberian folklore cult of Otter as ‘mother of all people’
‘Third Eye’ workshop by Hans Tammen
Sept. 11, Dovzhenko 8 p.m. film studio
Workshop uses the ‘third eye orchestra’ concept, based on a score that is rearranged every time the music is performed, and which is adaptable to any instruments
Chamber music concert by ‘New Era Orchestra’
Dovzhenko Sept. 12, film studio (chamber 5 p.m. stage)
New Era, one of Ukraine’s few nonstate chamber orchestras, performs a program created with an eye to the trends in European classical music
Dovzhenko Sept. 12, film studio 8 p.m. (open-air)
Liquid theater the winner of the Golden Mask, Russia’s national theatre award, works in the site-specific genre. Performances emerge from the space and locations where the actors find themselves, from streets to theatre stages
Liquid Theater performance
Source: www.gogolfest.org.ua/eng.
24 Lifestyle
www.kyivpost.com
September 3, 2010
Sept. 1 tradition means fresh start for all of us PH I L B I L L I N G
Sept. 1st … and, all over Ukraine, children are making their way to school immaculately dressed, girls with their hair tied in tresses and decorated with white ribbons, boys smart in their new suits and shiny shoes, all carrying bright bouquets of summer flowers or boxes of chocolates: gifts of beauty and sweetness for their teachers. In Kyiv, the sky hangs grey and low, heavy with autumn rain. But along the wet streets and avenues, beneath the dripping trees and rooftops, children and parents stride towards school, undeterred by the inclement weather or the swoosh of water thrown up by passing cars, happy to be reunited with friends after the long summer break. As the director of the British International School, I am struck by the very positive note with which the new school year is marked in Kyiv. I am astonished at how smart and polished our students look. I am moved by their greetings: “Good morning, Mr. Billing. I am so pleased to see you again. May I wish you a very happy and successful year!” The teachers are greeted in similar fashion, by parents and children, and their arms are weighed down with bunches of flowers. While Ukrainians might see this as “normal” – after all, it is the tradition here – international school teachers and students are surprised, impressed and inspired. All that is quite different from my experience in England, Israel, East Africa or India. What is not different is the anxiety of parents as they put their little ones into school for the first time; or of internationally mobile families whose children are living in a new house, in a new city and must now begin classes in a new school. (Some students change school as often as every two years.) Or the sense of nervous anticipation
Al Faro’s pizzas are made in a wood-burning oven. (Oleksiy Boyko)
Great, authentic Italian cuisine found at Al Faro Æ17 Genovese pizza (Hr 85) met our
From left: Marianna Kozina, Olexandra Spielvogel and Jessica Vovnyanko celebrate after the First Bell Ceremony at the British International School. (Courtesy photo)
among international teachers, newly arrived from previous posts. (At the British International School, we have recruited international teachers previously posted in Vietnam, Tanzania, Qatar, USA, Egypt, and the United Kingdom.) What an amazing opportunity the new school year heralds! Such a rich diversity of cultures, languages, experiences! All gathered in one place with one common aim: education. The canvas is empty. I wonder what kind of picture we will paint in 2010-11? Sir Ken Robinson, a leading figure in the world of creativity in education, tells the story of a young girl who loved to draw. One day her art teacher approached and asked: “What are you drawing?” The child replied: “A picture of God.” “But no one knows what God looks
like,” the teacher said. “They will – when they see my picture!” replied the young girl. Young people have an amazing capacity for creativity and imagination, qualities all too easily suppressed by stale syllabuses and unimaginative teaching. It is my hope that this year – in my school – and in many others, that our children will be facilitated and encouraged, challenged and guided, instructed and supported in such ways that they will paint a picture of extraordinary originality; that their learning and expression will bear the mark of their spirit, their heart, their passion. The first bell ceremony is over … the work of teaching and learning has begun! Phil Billing is the director of the British International School in Kyiv.
expectations as it was highly recommended. Instead of traditional tomato sauce it had a rich and heavy panna or cream sauce, the type served with Fettuccine Afredo. The crust was crispy and the basil-based pesto tasted supreme with the melted gorgonzola and mozzarella. Our last entré, was the meaty Veal Melanese (Hr 79). It came another 30 minutes after our previous orders had arrived but was well worth the wait. It had a lovely presentation being nicely topped with smoked veal prosciutto while the veal cutlet was well done and melted in my mouth. It was served handsomely garnished with pickled red peppers and grilled egg plant. Al Faro sets the mark for authenticity and it would be a grave mistake to call it a pizzeria. Other Italian eateries either can’t deliver on their non-pizza dishes or venture into fusion alienating the city’s still mostly uneducated restaurant goers. Its fare is temperately priced, and the value for your money is virtually unsurpassed in Kyiv. Italian lounge music plays unobtrusively at a barely audible level.
For intimacy sit in the more secluded back room and for a large sitting with friends or family gathering sit in the spacious atrium in the front which has a centrally located circular white staircase leading up to the lighthouse on the roof. Timing was the only drawback during this visit. The appetizer should’ve been served within minutes from ordering not with our other dishes. And the Turkish toilets in the bathroom is a major nuisance – nobody wants to squat into what is essentially a hole in the ground. Still, it was refreshing to dine in a place where the ubiquitous discount card isn’t used or needed to save money, where you’re not rudely greeted or fixedly gawked at by a muscleman bouncer or feel uncomfortable in a themed, corporately managed restaurant. That’s what Al Faro is. It doesn’t strive to be something it’s not, it’s simply a quiet, casual trattoria in Kyiv. Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com.
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According to the e Sept. 1 tradition,, the first-year student in this Mykolaiv school rings while lcarried by a finalyear student.
Paparazzi 25
September 3, 2010
Kamaliya’s party in Las Vegas
First bell rings for schools Some students are tired or bored by the festivities at Vvedenska school in Kyiv’s Podil.
Vinnytsya scholchildren go to their classrooms for their first lesson
One of the nation’s favorite traditions – the ringing of the first school bell on Sept. 1 – meant the start of another academic year for Ukraine’s 4.3 million schoolchildren. However, some pubils are starting without a curriculum or textbooks. The state will spend Hr 76.8 billion on education, or 7.9 percent of the budget. The state spends Hr 6,259 per year for every schoolchild, according to the Education Ministry. (Oleksiy Boyko, Ukrinform, Ukrainian photo)
Singer and actress Kamaliya performs in Las Vegas at MGM Grand’s Studio 54 on Aug. 22.
Kamaliya’s husband, Kyiv Post publisher Mohammad Zahoor (L), jazz legend George Duke (C) and a friend.
Deputy Prime Minister Sergiy Tigipko visited a school for children with impared vision.
President Viktor Yanukovych and Education Minister Dmytro Tabachnyk visited shool #16 in Kyiv specializing in English
Ukrainian singer-actress Kamaliya hosted a party in the MGM Grand Hotel & Casino in Las Vegas on Aug. 22. About 150 VIP guests – including some of America's top music and film producers – were in attendance. Kamaliya is preparing to launch an English-language album, but no but no details about the release are yet available. (Courtesy)
If you want Kyiv Post Paparazzi to cover your event, please send details or invitations to news@kyivpost.com or contact photo editor Yaroslav Debelyi at 234-6500
Ukrainian defends his boxing title
Boxing trainer Freddie Roach, right, and ring announcer Michael Buffer.
Æ
Charlie Jose Navarro of Venezuela.
Ukrainian Vyachselav Senchenko successfully defended his boxing champion’s title of World Boxing Association on Aug. 31 in Donetsk. He beat Charlie Jose Navarro of Venezuela after a full match of 12 rounds. Senchenko currently trains with the American coach Freddie Roach. (AP)
World boxing champion Viacheslav Senchenko of Ukraine poses for a photo after winning his title fight.
26 Community Bulletin Board
September 3, 2010
Publication of items in Kyiv Post Community Bulletin Board is free of charge. The newspaper will print as many submissions as space permits, but notices must be no more than 30 words, except for the people in need section. Advertising of paid services or commercial ventures is prohibited in this space. Permanent items must be resubmitted every three months. Deadline for submissions is 3 p.m. Friday for the next issue. New listings are boldfaced. Please e-mail news@kyivpost.com or contact lifestyle editor Yuliya Popova at 234-6500.
Business clubs
Î The Business-English Center meets on Sundays at 3:00 p.m. for a series of business English skills workshops. For more information, call Alex at 234-08-71, , e-mail: e-club@i. com.ua or visit www.etcentre.com.ua. Î A new gentelmen’s club is always open for well-educated, successful members (free admission) to combine establishing business relationships with unconstrained socializing. Pls.contact us: vadym_n@ukr.net, kobserg@ yahoo.com, (067) 7406820 Sergio. Î The British Business Club in Ukraine meets every Saturday for business discussion and once every month for networking. Membership in the BBCU is by invitation only and is open to individuals and companies. Please e-mail:administrator@bbcu.com.ua. Î Free English discussions about Internet marketing. Bold Endeavours, a British marketing and web development company, welcomes senior marketing managers/ directors to an English language discussion group about search engines and Internet marketing at noon on the first Saturday of each month. Call 221-9595, or register online atwww.bold.com.ua.
Public speaking
Î Christ Church, Kyiv. We are the Anglican/Episcopal Church, serving the English-speaking community in Kyiv. We meet Sundays at 3 p.m. at St Catherine’s German Lutheran Church, 22 Luteranska Street, 5-minute walk from Khreshchatyk. Bible study on Tuesdays at 7.30 p.m. Please call Graham at 38098-779-4457 for more information, www. acny.org.uk/8592. Î You are invited to the St. Paul’s Evangelical Church. Roger McMurrin is its founding pastor. Music for worship is provided by the Kyiv Symphony Orchestra and Chorus. Worship services are held every Sunday at 2:30 pm at the House of Artistic Collectives (Veriovka Choir Hall, 4th floor) at 50/52 Shevchenko Blvd. Call 235-45-03 or 235-6980. Î International Church, Kyiv. English and Spanish Bible study classes. We invite you to weekly services at 10.30 a.m. Saturdays at 13A Miropolskaya str. (m. Chernigovskaya, 2nd stop by a tram Boichenka. Central entrance of twostoried building). Tel.: 38093-757-6848, 542-3194. Î Word of God Church offers Bible study every Sunday and Wednesday at 7 p.m. Sunday school, nursery for children. For more information call: 517-5193. Î International Baptist Church invites you to our English language worship services (Sundays at 10 a.m.). We are located near Vyrlytsya metro in the downstairs hall of Transfiguration Church, 30B Verbytskoho.http://livingvinechurch.googlepages.com. Î The Evangelic Presbyterian Church of the Holy Trinity invites you to our worship service, held in Ukrainian and Russian with simultaneous English translation. We meet each Sunday at 50-52 Shevchenka blvd., #402 (4-th floor). Worship begins at 11:00 a.m. Sunday school for adults begins at 9:45 a.m. Pastor Ivan Bespalov: tel. (044) 2870815; (097) 317-9598; e-mail: ivanbespalov@gmail.com. Î Kyiv International Bible Church, an English language evangelical nondenominational church meeting at 10:30 a.m. on Sundays at 34A Popudrenka, between Darnytsya and Chernihivska metro stops. Contacts: 501-8082,orkievIBC@gmail.com. Î International Christian Assembly meets at 57 Holosiyivska. Services are held every Sunday: 9 a.m. till 11:30 a.m. For further information contact: Paul, +380503822782,www.icakiev.com
Support groups
society, youth leadership development, intercultural dialogue. To learn more please e-mail us at studentembassy@ gmail.com or visithttp://studentembassy.org.ua. Î The Kyiv Rotary Club meets on Tuesdays at 7 p.m. at Andreyevsky Prichal restaurant, 6 Bratskaya Str. For more information, please contact Nataliya Rodovanskaya at +38067-296-5672 or n_radov@yahoo.com. Î The International Women’s Club of Kyiv (IWCK) welcomes women from around the world to join our support network and participate in our extensive social and charitable programs. For more information, see our website www.iwck.org, call or e-mail the IWCK Program Coordinator Yaroslava Neruh at 234-3180,office@iwck.org. Address: 39 Pushkinska, #51, entrance 5, door code 38. Î The Rotaract Club Kyiv meets on Thursdays at 7:00pm at the Ukrainian Educational Center, Prospect Peremohy, #30, apt. 82. For more information, please email: president@rotaract-kyiv.org.ua or visit our websitewww.rotaract-kyiv.org.ua. Î The Kyiv Rotary Club meets on Tuesdays at 7:00 p.m. at Andreevskiy Prichal restaurant, Bratskaya Street #6. For more information, please contact Natalia Rodovanskaya at +38 067 296 5672 or n_radov@yahoo.com. Î Amnesty International English Speaking Group. Meetings are being held every other Tuesday of the month at 7pm. Become informed, get involved and brush up on your English. Meetings are held at the German Lutheran Church, 22 Lyuteranska. For more details call 38066-2474099 or e-mail at amnestykiev@yahoo.com. Î Democrats Abroad Ukraine is the official organization of the Democratic Party in Ukraine; connecting Americans with U.S. politics and the Democratic Party; registering, informing, and motivating voters; supporting U.S. candidates, holding events, and fundraising. To join, email info@ democratsabroad.org.ua. Î The Kyiv Multinational Rotary Club welcomes all Rotarians who are in Kyiv and new potential Rotarians. Our meetings are conducted in English and are held every Wednesday evening at 7 p.m. at the Radisson Hotel, Yaroslaviv Val Street 22. For a map and further information please consult our website at:http://kmrclub.org. Î The Kyiv Lions Club is one of 45,000 Lions Clubs around the world, we raise funds and provide services to help those most in need in our community by supporting charities in our chosen sectors of giving: children, the disabled, and the elderly. We meet on the second Monday of every month in the downstairs bar of the Golden Gate Irish Pub at 7 p.m. For more information contact Paul Niland at 044531-9193 or paul.niland@primerosfunds.com.
English clubs
Î Dnipro Hills Toastmasters Club would like to invite success-oriented people to learn and develop public speaking, presentation and leadership skills. Join us Sundays from 10 to 11 a.m. at Kyiv Business School, 34 L. Ukrainky Street, metro station Pecherska. For detailed information, please, check our websitewww.dniprohills.org.ua Î European Business Association Toastmasters Clubinvites enthusiastic, goal-oriented people to learn and improve their communication and leadership skills in friendly learning and supportive environment. We meet every Monday at 7.30 p.m. at American Councils at Melnykova, 63. For details please contact Sergiy Kotla, President of the Club, at 09- 948-2885,www.ebatmc.blogspot.com. Î Top Talkers Toastmasters Club is happy to invite ambitious and enthusiastic people to learn by doing. Together we will discover inner potential in public speaking and leadership in each of us. We meet every Tuesday at Kraft Foods, 23 Yaroslaviv Val Street at 7 P.M.. Please check our websitewww.toptalkers.org Î American Chamber of Commerce Toastmasters Club invites English speaking business professionals to advance their presentation and communication skills in a friendly and supportive atmosphere. We meet each Wednesday at 7.30 p.m., at the Microsoft Ukraine office, 75 Zhylyanska St., Floor 4, Business Center Eurasia. To receive further details on the club and its membership, please contact our Club Vice President Membership Anton Stetsenko at 093-609-5161. Î Kyiv Toastcrackers Club,a part of Toastmasters International, is a worldwide organization that helps men and women learn the arts of speaking, listening and thinking through effective oral communication. We invite new people to benefit from the meetings on Wednesdays, at 7 p.m. at the House of Scientists, 45a Volodymyrska St. For more information seewww.toastcrackers.kiev.ua. Î Talkers Toastmastersclub invites those interested in improving their public speaking, communication skills, English and creative abilities to join its meetings on Saturday mornings at 11 A.M. Please, check club’s websitearttalkers.wordpress.com, call 8096-565-6229 or E-mail:arttalkers@gmail.com
Î Divorce mediation, commercial mediation, consulting on diagnostics of conflict resolution in organization. Ukrainian Mediation Center, www.ukrmedation.com.ua Please contact Oksana Kondratyuk: 380-66-758-66-44, delo2@i.ua. Î Individual consultations, psychological support in divorce, family relations, stress management, health issues, relaxation, self-esteem, personal development. Call Elena: 097-294-6781. Î Alcoholics Anonymous English-speaking group meets Sat. at 10.30 a.m. at 17-D Kostyolna. Meets Sun, Tues, Thurs at various locations. Contacts:aakyiv@ukr.net, 38067-2348699/38050-331-5028 (Jon). Î Counselling/advising in relationships, personal growth, body/ mind/spirit matters. Well-known Ukrainian psychologist counsels expats in English and French in the center of Kyiv (Lyuteranska). Seewww.hohel.kiev.ua, or call 38050595-3686 between 3 p.m. and 5 p.m. Î Individual psychological counseling for Russian and English speakers. Family issues, mood disorders, anxiety, depression. Psychological Rehabilitation & Resocialization Center. Call Elena Korneyeva, 38050-573-5810, between 10 a.m. and 6 p.m., or e-mail:kornyeyeva@rambler.ru. Î Social, sport and health clubs Î Kiev Hash House Harriers club meets every second Sunday at 1 p.m. at the Lucky Pub, 13 Chervonoarmiyska St. (near Lva Tolstoho metro station). For more details visit websitewww.h3.kiev.ua.
International clubs
Religion
Î Welcome to the friendly atmosphere of a Frenchspeaking club. We meet once weekly on Saturdays or Sundays for conversation practice and movie sessions. Please contact Svetlana: 067-907-1456 or email: consonance-s@ukr.net. Î Student Embassy Project invites students to join intercultural events in Kyiv, Lviv and Ternopil. The initiative is aimed at international students’ integration into Ukrainian
Î English-Russian Conversation Clubfor adults. People of different ages are invited for international meetings. Mini-groups, individual approach. Making new friends. Conversational trainings. E-mail: engrusglobe@i.ua Î Sprout Christian International School is looking for Native English-speaking volunteers who are enthusiastic and love working with children to help in preschool and English club starting coming September. For more details please call ASAP: Natalie Istomina: +380 67 501-04-06, +380 93 798-98-40 Î Wave Language School offers free English speaking clubs to the public. Join us on weekends from 4pm – 6pm or 7pm – 9pm on Saturdays and 1pm – 3pm or 4pm – 6pm on Sundays. Please contact us by email if you are interested: info@wavelanguageschool.com. We hope to see you soon – everybody is welcome. Î Free English practice at conversation club, regular meetings on Fridays at 7 p.m. near Akademgorodok metro. English native speakers. Interesting topics for discussion. Everyone is invited. Join us at 76 Irpenskaya str., off.31. http://english.in.ua/, Tel. +38(044) 229-2838. Î English Speaking Club meets in pizzeria Mozaika at any convenient time for discussions of interesting topics. For more information call Tanya at +38 063-103-8004, e-mail:guchio@mail.ru. Î Daily English at Phoenix Center. Improve your business and communication skills at free conversation classes. American and British native speakers. We are located near the Pechersk metro. Tel: 599-2206, e-mail: info@phoenixcenter.com.ua. Î Free book & DVD exchange. Hundreds of English books and movies. Bring one, take one at the Phoenix Center. Address: metro Pecherska,2 Nemyrovycha-Danchenko, University of Technology and Design – blue 14-storied building, 3rd floor. Hours: Mon-Fri 6 p.m. till 7:30 p.m., Sat noon till 1:30 p.m. Î Native English speakers. Meet the best and the brightest in Kyiv, well-educated, ambitious, and talented young people 20-30 y.o. Share your English skills and make new friends. Everyone is welcome to visit for free. We also organize picnics, balls and excursions. Five days a week at different locations. Please contact Mark Taylor atjmt260@ hotmail.com for more information. Î Free speaking English club in Irpen on Saturdays at Lan School. Call +38093-623-3071. Î Improve your English-speaking skills and have fun. Be prepared to speak English most of the time with native speakers. Conversational club, thematic discussions on Saturdays and Sundays. For more information please contact Vadym. email:vadik_s@ukr.net, call 066-767-4407. Î Free international conversation club on Fridays at 7
www.kyivpost.com p.m. at English Language Center. Interesting topics for discussion, studying the Bible sometimes. Join us at 2B Nikolsko-Slobidska, office No. 277 (m. Lievoberezhna) and 76 Irpenska, office No. 31 (m. Akademgorodok. The ELC LTD. Tel. 5811989.http://english.in.ua/. Î Are you a native English speaker? We are glad to invite you to join our English-speaking club. Call 067-620-3120 (Olga) or e-mail Olga.Bondar@atlantm.com.ua Î Daily English at Phoenix Center. Improve your business and communication skills at free conversation classes. American and British native speakers. We are located next to Pechersk metro. Tel: 599-6080, e-mail:Phoenix7kiev@ yahoo.com. Î Free English/German conversation club on Sundays. Druzhbi Narodiv 18/7, office No.3. Everyone is welcome. Tel: 529-75-77.
People in need
Î Inna will be 25 this August. It’s time of joy, love, and hugs of friends and beloved, time of raising children. For Inna all this may end even without a start. She was diagnosed a lymph nodes’ cancer. One course of chemotherapy has already been done, however it helped just for a while. Inna needs a complex surgery in Israel, a stem cell transplant. It’s her last chance to survive. The surgery costs 100 thousand dollars, and only 3 months left. We’ve gathered a very small amount, but there’s still time, and every day and every hryvna counts. Contact persons: Olena Dmytrenko, aunt: +380-67-8903655; Dasha, close friend: +380-98-120-7313 Webpage: http://www.dopomogainna.org/ You can make a donation to the following bank account: Account: 4149500008698717 Raiffeisen Bank Aval Recipient: Inna Usikova The most convenient way is to send money to the card account 4149 5000 0869 8717 using any of the Raiffeisen Bank Aval cash terminals. Function: “money transfer” (ukr. “грошовий переказ”) / “transfer to another Aval card” (ukr. “еказ на іншу картку Аваль”) Banking details for the HRYVNA transfer from other Ukrainian banks: Bank: АТ Райффайзен БанкАваль Code МФО: 300335 Recipient: Inna Usikova Code ЕДРПОУ: 3127322387 Account of the recipient bank: 26252101 Payment purpose: pay-in transaction to the card account 0283448700 Recipient: Inna Usikova Î Sofia Sydorchuk, 3,5 years old, needs your help urgently. The girl has recently been diagnosed with myeloblastic leukemia, she is in hospital, the intensive chemotherapy department. Sofia needs to undergo a course of medical treatment that consists of 4 blocks of chemotherapy (one block has already been done). It is difficult to determine the exact cost of the treatment at this stage; our best estimate is around Euro 200,000. After chemotherapy Sofia needs to move to a specialised rehabilitation clinic in Israel or Germany. Sofia’s family hopes for your support, each day they do treatment and tests. You can make a donation via one of the following options: (1) Donations made through a bank transfer Banking details for transfers in Hr: Beneficiary: ÀÒ “Ukreksimbank” Account: 2924902234 Bank of the beneficiary: ÀÒ “Ukreksimbank” MFO code: 322313 EDRPOU code: 00032112 Payment purpose: receipt of funds to the account of Sydorchuk D.V. 0001025541 (2) Donations via web-money Z351457992891 R639870369876 E252216931289 U585571766822 (For instructions on transferring the money via web-money please refer to: http://webmoney.ua/withdrawfunds/transfer/#) Î PLEASE HELP Nastya Kotova, 15 years old, who suffers from acute myeloid leukemia. Nastya already had 3 blocks of chemotherapy in Okhmatdet clinic. She desperately needs bone marrow transplantation from a non-relative. The Israel clinic sent invoices for USD 156,000. Nastya also constantly needs ongoing therapy in Ukraine. HELP PLEASE Hryvnya account: Privatbank, account number 29244825509100 MFO:305299, OKPO:14360570 Card account: 4405885014676768, Kotova Olena Vasilievna (id 2608400766). USD account: Beneficiary**: Acc.#0144 KOTOVA OLENA VASYLIVNA/262032029308 (name of the client) Bank of Beneficiary: open Joint Stock Company RAIFFEISEN BANK AVAL; Kyiv,Ukraine. S.W.I.F.T. code: AVALUAUKDNI Correspondent bank: Corr.acc. #2000193004429 Wachovia Bank,New york,NY S.W.I.F.T. code: PNBPUS3NNYC Yandex koshelek: 41001136440702 Î The Down Syndrome Ukrainian Organization gathers parents who have trisomic children, in order to help them raise their kids, and aims at changing the public perception of the disease. The Organisation is now opening a Center for Early Development of the Children with Down Syndrome in Kyiv. The association has recently launched the operation “Serebrenaya Monetka” (Silver Coin) in order to raise funds for the center. Transparent boxes have been displayed in the 100 branches of UkrSibBank (the subsidiary of the French BNP Paribas group) in Kyiv, in order to collect the small coins that everybody has in their pockets. All donations are welcome. Details can be found at the:http://www.downsyndrome.com.ua/; http://www. ukrsibbank.com. The operation will end on March 19th. All the proceeds of the operation will be used to buy equipments and furniture for this Center.” Hryvnya account: BENEFICIARY: Vseukrainskaia Bkagodiyna Organizatsia Down Syndrome ACCOUNT: 26007265663400 MFO 351005 UKRSIBBANK
www.kyivpost.com
Paparazzi 27
September 3, 2010
The first plane taking off from the new terminal to fly to Kyiv
Kharkiv airport gets a new terminal
Æ
The new terminal that opened in Kharkiv on Aug. 28 will allow it to quadruple the number of passengers it can receive every year, to 800,000 people. The terminal was built in preparation for Euro-2012 European football championship, which Ukraine will co-host with Poland. Kharkiv was picked as one of the sites for championship matches. The new terminal, which is 20,000 square meters in area, was built in less than two years, according to Oleksandr Yaroslavsky, the local oligarch who financed the construction. President Viktor Yanukovych, who attended the opening ceremony, said that after Euro-2012 Ukraine will start preparing to host the Olympic Games in 2022. (Photos by Yaroslav Debelyi)
A view of the terminal’s exterior
Kharkiv Region Governor Mykhailo Dobkin and President Viktor Yanukovych cut the ribbon
Clean, sleek lines of the terminal’s modern interior
The terminal's opening festivities ended with a rock concert
Vyacheslav Vakarchuk, the start frontman of Okean Elzy pop rock band
A five-star welcome for guests
Foma, the leader of Mandry lyrical rock band
Oligarch Oleksndr Yaroslavskiy (L) sponsored the construction
Borys Kolesnikov, deputy prime minister for Euro-2012 was in attendance
If you want Kyiv Post Paparazzi to cover your event, please send details or invitations to news@kyivpost.com or contact photo editor Yaroslav Debelyi at 234-6500
$ONlT FORGET TO PICK UP YOUR COPY OF www.kyivpost.com
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Kiyavia (4 Horodetskoho St.) Aerosvit Airlines Alitalia Austrian Airlines British Airways Challenge Aero MALEV HUNGARIAN AIRLINES Ukraine International Airlines UT-air
Al Faro (49A Velyka Vasylkivska St.) Antresol Art-CafĂŠ (2 Taras Shevchenko Blvd.) Arizona Barbeque (25 NaberezhnoKhreshchatytska St.) ATZUMARI (17/52 Bohdana Khmelnytskoho St.) AutPab (3/25 Kominterna St.) Babai beer Club (4 SoďŹ ivska St.) Baraban (4A Prorizna St.) BeerBerry (17/52 Bohdana Khmelnytskoho St.) Belle Vue (7 Saksahanskoho St.) Belvedere (1 Dniprovsky Uzviz) Bierstube (20 Velyka Vasylkivska St.) Bochka Pyvna (3B Bohdana Khmelnytskoho St., 19A Khreshchatyk St.; 24 Vorovskoho St., 128 Borshchahivska St., 19 Mezhyhirska St.) Bulvar Cafe/Shaliapin (44 Velyka Vasylkivska St.) Cabaret 'Paradise' (5-7/29 Taras Shevchenko Blvd. ) Coffee Life (22 Yaroslaviv Val St., 40 Uritskoho St.) Concord (L.Tolstogo sq. BC ÂŤKievDonbassÂť 8 oor) Dim Kavy (15 Khreshchatyk St., Passage) Dom Bergonie (17 Pushkinska St.) DOUBLE COFFEE (42 Bohdana Khmelnytskoho; 34B Moskovskyi Avenue St., 6 Mykhailivska St.; 1/2 Konstantynivska St.) Dubki (1 Stetsenko St.) Dva Bobra (91 Komarova St., village Mila) ETNO (23A Prorizna St., 25 Pushkinska St., 8/14 Velyka Zhytomyrska St.) Fellini (5 Horodetskoho St.) Fish Market (24A Volodymyrska St.) Fluger (18D Artema St.) Fridays (5A Besarabska Square) Goodman Steak House (75 Zhylians'ka St.) Grandal (24B Polyova St.) Himalai (23 Khreshchatyk St.) IQ bar (25 L.Tolstogo St.) IL Patio (112 Saksahanskoho St., 5A Besarabska Square, 5/13 NaberezhnoKhreshchatytska St., 57/3 Velyka Vasylkivska St.) IZUMrud (15/3 O. Gonchara St.)
A.B.C.World Languages Center (23/35 Patrisa Lumumby St.) AC Legal Group (10 Grushevskogo St.) Aksonova & Associates (29E Vorovskoho St.) American Chamber of Commerce (12 Amosova St.) American Medical Center (1 Berdychivska St.) Beiten Burkhardt (38 Turhenivska St.) British Council Ukraine (4/12 Hrihoria Skovorody St.) Ciklum (12 Amosova St.) Clifford Chance (75 Zhylianska St.) DHL (9 Luhova St.) European Business Association (1A Andriyivskiy Uzviz) Grant Thornton Ukraine (4A Dehtiarivska St.) Grata (9A Mykhailivskiy Lane) Hudson Global Resources (19/21E Nyzhniy Val) Ukraine-Europe Linguistic Centre (20B Kominterna St.) Manpower Ukraine (34B Predslavynska St.) MBA Strategy (32 Bohdana Khmelnytskoho St.) SC Johnson (19B Moskovskiy Prosp.) Senator Apartments (6 Pirohova ST., 62/20 Dmitrievska St.) Staff Service Solution (1-3 Frunze St.) Student Travel International (18/1 Prorizna St.) UkrAVTO (15/2 Velyka Vasylkivska St.) Ukrsibbank (14 Pushkinska St.) Via Kiev Lufthansa City Center (172 Horkoho St.)
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John Bull Pub (36 Saksahanskoho St.) Klovsky (16A Mechnykova St.) Korifey (6 Horodetskoho St.) Kraina Kavy (5 Spas'ka St.) La Bodeguita del Medio (21/20 Yaroslaviv Val St.) La Casa Del Habano (13 Klovskiy Spusk) Le Cosmopolite (47 Volodymyrska St.) Le Grand CafĂŠ (4 Muzeiniy Lane) Leo Club (20 Parkova Doroha) Leonardo (2 Besarabska Square) Luciano (33V Dehtiarivska St.) Lun Van (26 Bohdana Khmelnytskoho St.) Marokana (24 Lesi Ukrainki Blvd.) Marmaris (40 Hlybochyts'ka St.) Monako (20A Velyka Zhytomyrska St.) NatĂźrlich (3 Bohdana Khmelnytskoho St.) Neopolis (19 Skovorody St.) New Bombey Palace (33A Druzhby Narodiv Blvd.) News cafĂŠ (6 Hetmana St.) O’Brien’s (17A Mykhailivska St.) O’Panas (10 Tereshchenkivska St.) Oliva (34 Velyka Vasylkivska St., 25A Druzhby Narodiv Blvd., 5 Kominterna St.,25 Sahaidachnoho St.) Panda (76 Saksahanskoho St.) Panorama (3 Sholudenko St.) Pantagruel (1 Lysenko St.) Planet-Sushi (41 Sahaidachnoho St., 12 Khreshchatyk St., 57/3 Velyka Vasylkivska St., 8/14 Velyka Zhytomyrska St.) Potato House (6/5 Zhytomyrska St.) Repriza (40/25 Bohdana Khmelnytskoho St.; 38 Velyka Zhytomyrska St.; 26 Chervonoarmiyska St.) Route 66 (87/30 Zhylianska St.) Schnitzel Haus (51 Saksahanskoho St.) Shastra (126A Chervonozorianiy Prosp.) Shokoladnitsa (53/80 Saksahanskoho St., 48 Velyka Vasylkivska St., 1/2 Baseina St., 4 Lunacharskoho St., 33 Dniprovska Naberezhna, 12 Luhova St., 58/2A Artema St.) Shooters (22 Moskovska St.) Soho (82 Artema St.) Stina (2 Besarabska Square) Sunduk (22A Prorizna St.) Sutra Bar (3 TymoďŹ ivoi St.) Svitlytsia (13B Andriivskyi Uzviz) Tike (31A Sahaidachnoho St.)
Timeout (50 Horkoho St.) To Dublin (4 Raisa Okipna St.) Trans Force (34B Moskovsky Prosp.) Tsarske Selo (42/1 Ivan Mazepa St.) Under Wonder (21 Velyka Vasylkivska St.) Vezuvio Pizza (2 Taras Shevchenko Blvd.) Videnski Bulochky (25B Sahaidachnoho St., 14/1 Instytutska St., 14 Mechnykova St., 1-3/5 Pushkinska St., 107/47 Saksahanskoho St., 34 Lesi Ukrainki Blvd.) Viola’s Bar (1A Taras Shevchenko Blvd.) Warsteiner Pub (4B Horodetskoho St.) Wolkonsky Keyzer (15 Khreshchatyk St., 5/7-29 Taras Shevchenko Blvd.) Yakitoria (27A Taras Shevchenko Blvd.; 27 Lesi Ukrainki Blvd.)
3PORT #LUBS 5 Element (29 Elektrykiv St.) Favorit (6 Muzeiniy Lane) Kiev Sport Club (5 Druzhby Narodiv Blvd.) Planeta Fitnes (10 Kropyvnytskoho St.)
(OTELS Adria (2 Raisa Okipna St.) AttachĂŠ Hotel (59 Zhylianska St.) City Park Hotel (20 Vorovskoho St.) Diarso (5 Velyka Kiltseva Doroha) Domus Hotel (19 Yaroslavskaya St.) Express (38/40 Taras Shevchenko Blvd.) Gorniy Ruchey (66 Michurina St., village Gora, Boryspil region) Hotel Dnipro (1/2 Khreshchatyk St.) Hyatt (5A Alla Tarasova St.) Impressa Hotel (21 Sahaidachnoho St.) Intercontinental (2A Velyka Zhytomyrska St.) Kozatsky (1/3 Mykhailivska St., 2/32 Antonova St.) Kozatsky Stan (Boryspilske Shose, 18 km) Khreschatyk hotel (14 Khreshchatyk St.) Lybid (1 Peremohy Prosp.) Opera Hotel (53 Bohdana Khmelnytskoho St.) Oselya (11 Kameniariv St.) President Hotel (12 Hospitalna St.) Premier Palace (5-7/29 Taras Shevchenko Blvd.) Radisson Blu (22 Yaroslaviv Val St.) Riviera (15 Sahaidachnoho St.)
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Rus (4 Hospytalna St.) Salyut (11B Sichnevogo Povstannia St.) Senator Apartments (6 Pirohova St., 62/20 Dmitrievska St.) Slavutych (1 Entuziastiv St.)
%DUCATIONAL ESTABLISHMENTS Business School MIM-Kyiv (10/12B Shulyavska St.) British skylines (16 Khreshchatyk St., 10G Larysy Rudenko St.) International Institute of Business (8A Brest-Litovskyi Highway) Kyiv International School (3A Sviatoshynsky Lane) Master Klass (34 Ivan Mazepa St.) Pechersk International School (7A Viktora Zabily St.) Runov school (30 Velyka Vasylkivska St.) Speak Up (14 Kotsiubynskoho St. 25B Sahaidachnoho St., 4 Lunacharskoho St., 136 Peremohy Prosp.) The London School of English (39 Polytehnichna St.) Valerie’s school (14 Mykhailivska St.)
"USINESS #ENTERS Arena (2A Baseina St.) Artem (4 Hlybochytska St.) Cubic Cente (3 Sholudenko St.) Diplomat Hall (59 Zhylianska St.) Eurasia Ukraine (73-79 Zhylianska St.) Evropa (4 Muzeiniy Lane) Evropa Plaza (120 Saksahanskoho St.) GOOIOORD B.V. (34/33 Ivana Franka St., 36 Ivana Franka St.,11 Mykhailivska St., 52B Bohdana Khmelnytskoho St.) Horizon Park (12 Amosova St., 4 Grinchenko St.) Illinsky (8 Illinska St.) Khreshchatyk Plaza (19A Khreshchatyk St.) Kiev-Donbass (42/4 Pushkinska St.) Podol Plaza (19 Skovorody St.)
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POSITION ANNOUNCEMENT Chemonics International Inc. seeks a highly-qualified Ukrainian professional for the following position on the USAID Rule of Law (UROL) Project:
Legal and Civil Society Specialist Duties and Responsibilities: The Legal and Civil Society Specialist leads activities focused on improving interaction between civil society and the judiciary; strengthening the role of civil society in the judicial reform process; promoting civil society oversight of judicial operations; and increasing public awareness on judicial policies and procedures. Specifically the Legal and Civil Society Specialist will: s #OLLABORATE WITH KEY CIVIL SOCIETY AND professional organizations to advocate for judicial reform; s "UILD THE CAPACITY OF SELECT CIVIL SOCIETY organizations to monitor and report upon court performance at the local level; s $EVELOP A NATIONAL FRAMEWORK FOR COURT performance evaluation based on international concepts of court excellence; s $EVELOP AND IMPLEMENT TRAINING PROGRAM ON court performance standards and evaluation for courts and civil society organizations; s /RGANIZE EVENTS WITH CIVIL SOCIETY INCLUDING public discussions, opinion surveys, and other presentations; s /VERSEE TECHNICAL IMPLEMENTATION OF GRANT programs related to courts and civil society activities.
Job Qualifications: s $EGREE IN LEGAL SOCIAL SCIENCES OR RELATED FIELD required. s !T LEAST FIVE YEARS EXPERIENCE DEALING WITH CIVIL society institutions, and in designing, delivering and evaluating products and campaigns for civil society organizations required. s !BILITY TO COMMUNICATE CLEARLY AND EFFECTIVELY IN English and Ukrainian required. s 0REVIOUS 53!)$ OR OTHER INTERNATIONAL DONOR experience preferred. s +NOWLEDGE OF THE 5KRAINIAN LEGAL AND JUDICIAL system preferred. Please submit resume and cover letter to office@ukrainerol.org.ua by September 10, 2010, with the position in the subject line. No telephone inquiries, please. Finalists will be contacted.
Employment 29
September 3, 2010
MONITORING
VACANCY ANNOUNCEMENT United Nations Development Programme (UNDP) invites Ukraine applications from highly qualified, energetic, proactive and experienced professionals for the posts of
MONITORING JOURNALIST, BBC MONITORING BBC Monitoring is part of the British Broadcasting Corporation. It monitors opensource foreign media from over 150 countries throughout the world in more than 70 languages. We provide news and information to the BBC, government and commercial customers. BBC Monitoring has a central office in the UK and international offices all over the world, including Kiev, from which we monitor media in the region. You will work in a centrally-located office in Kiev on a full-time basis and will monitor and select news and information from local source material - from TV, press, internet and social media. You will translate, edit and write copy accurately and quickly using clear idiomatic English and in line with customer requirements. Shift work - including late evenings and weekends - is an essential feature of the job. As a BBC Monitoring staff member, you will also be expected to work in other BBCM offices in the UK and the former Soviet Union from time to time. You will have an excellent knowledge of international affairs, especially in relation to Ukraine, Russia, Belarus and Europe. You will have excellent English, Russian and Ukrainian. Ability to understand and translate to/from another foreign language (in addition to the three above) is also required. Journalistic experience and knowledge of social media would be an advantage. Good typing and IT skills are also required. We offer competitive pay and extensive training opportunities. You will be hired on an initial one-year contract, subject to further extension if both parties agree. Shortlisted candidates will be invited to sit a test. For an application form or further information please email: bbcmon.kiev@gmail.com Please do not send us your CV at this time. Applications must be received by 12 September 2010.
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3FRVJSFNFOUT - Good command of English; - Strong analytical skills; - Ability to multitask; - Financial education is preferred; - Experience with QuickBooks is preferred; - Experience at similar positions is preferred;
Home-based position 8 am – 5 pm EST, Mon – Fri Competitive base salary Bonuses and benefits 3FRVJSFNFOUT Proficiency in: • English, MS Office • Web browsing
Applicants from all regions of Ukraine are welcome
Applicants from all regions of Ukraine are welcome
1MFBTF TFOE ZPVS $7 UP VBKPCT!WJUBWFS DPN
1MFBTF TFOE ZPVS $7 UP VBKPCT!WJUBWFS DPN
SALES MANAGER We offer a challenging opportunity to work for Ukraine’s leading Englishlanguage newspaper.
Requirements: Strong presentation skills Positive attitude Good communications skills Understanding of how to sell in print and online Ability to learn quickly Knowledge of Word, Excel, Internet Explorer programs Work experience in FMCG is preferable. Sales experience is helpful, but not required. Good English level Salary based on qualifications.
FINANCE ANALYST/SRMU (FTA)
who will be responsible for effective delivery of programme finance services ensuring effective and transparent utilization of financial resources and integrity of financial services in CO Ukraine. Detailed job description is available at http://jobs.undp.org/ cj_view_job.cfm?job_id=18919 DEADLINE FOR APPLICATIONS IS 13/09/2010
HUMAN RESOURCES ASSISTANT (FTA)
who will provide HR services ensuring high quality, accuracy and consistency of work. Detailed job description is available at http://jobs.undp.org/ cj_view_job.cfm?job_id=18915 DEADLINE FOR APPLICATIONS IS 13/09/2010
FINANCE/ADMINISTRATIVE ASSOCIATE (FTA, UNITED NATIONS POPULATION FUND)
who will provide overall financial, travel, human resources and general administrative support to the Country Office. Detailed job description is available at http://jobs.undp.org/ cj_view_job.cfm?job_id=18949 DEADLINE FOR APPLICATIONS IS 14/09/2010
Please send your CV, including salary requirements, with “Sales manager� in the subject line to: hr@kyivpost .com
All interested candidates should complete the UN PERSONAL HISTORY FORM* (P-11) available on http://undp. org.ua/en/jobs and attach it to the online application. UNDP Office in Ukraine, 1, Klovskiy uzviz, Kiev 01021
30 Employment/Education
www.kyivpost.com
September 3, 2010
Head of Credit Analysis of Corporates and FI Division
7/2+ ). #!.!$! Want to Immigrate to Canada ? We Can Help
Head of Credit Analysis of Corporates and FI Division
Warren Green & Sara Green Certified Canadian Immigration Consultants
Job Description
Members of the Canadian Society of Immigration Consultants
Reporting to the Chief Credit Officer, you will develop credit analysis framework and ensure credit activities in accordance with Swedbank Group policies and compliance. This includes managing all activities such as reviewing and analyzing credit management for the region, assessing risk for the group. You will provide credit risk advisory support such as resolve collection disputes and identify emerging risk/trends.
If you work in one of the occupations listed below you may be eligible to immigrate to Canada as a Federal Skilled Worker in as little as 6-12 Months.
Main responsibilities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†%VUZ &RVJQNFOU .FDIBOJDT $SBOF 0QFSBUPST %SJMMFST #MBTUFST † 4VSGBDF .JOJOH 2VBSSZJOH $POTUSVDUJPO 4VQFSWJTPST 0JM (BT %SJMMJOH BOE 4FSWJDF
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The Successful Applicant has t %FHSFF JO #BOLJOH PS 'JOBODF t .JO ZFBST PG FYQFSJFODF JO $SFEJU 3JTL NBOBHFNFOU BSFB JO BO JOUFSOBUJPOBM CBOLJOH HSPVQ t .JO ZFBST PG UPUBM CBOLJOH FYQFSJFODF t 4USPOH BOBMZUJDBM TLJMMT t 'MVFOU &OHMJTI
*G ZPV EP OPU XPSL JO POF PG UIFTF PDDVQBUJPOT UIFSF BSF PUIFS BWFOVFT UP TVQQPSU ZPVS $BOBEJBO JNNJHSBUJPO BQQMJDBUJPO +PC PGGFST NBZ CF BWBJMBCMF JO DFSUBJO PDDVQBUJPOT 6ISIT OUR WEB SITE WWW ALBERTAIMMIGRATION COM FOR A FREE ONLINE ASSESSMENT AND CONTACT 7ARREN AND 3ARA FOR ADDITIONAL INFORMATION &OR DETAILS ON OUR UPCOMING #ANADIAN )MMIGRATION 3EMINARS #ONSULTATIONS IN +IEV CONTACT $AVID 'REEN AT +7 495 9959651 .OTE &EES WILL APPLY
Apply for this job For a confidential discussion about this role, please, contact Tatyana Shulga at +38 067 548 83 80 or send your CV to tetyana.shulga@swedbank.ua.
SIMCORP UKRAINE LLC IS LOOKING FOR A TEAM LEADER/MANAGER You will work with the following tasks Leading a group of highly specialised people Clearly communicating expectations to your team members, i.e. milestones and qualit Ensuring tools and processes are effectively supporting the main process
Your qualifications Experience as a Team leader/ Manager in IT industry Work experience in international teams and offshore projects Strong leadership skills as a coach and motivator Solid technical background (software development experience and/or database administration) Good English
Nice to have Knowledge of C#, HTML, ASP, XML, VBScript, Database Broad spectrum technical knowledge of OS - Windows, OS memory management, Citrix, VMWare, Unix database optimiser, index technology, network technology.
Who is SimCorp SimCorp is a leading provider of highly specialised software and financial knowledge for the financial services sector for more than 35 years. Its customers include international banks, insurance companies and investment managers. Headquartered and listed in Copenhagen, SimCorp employs more than 1.000 staff in international and regional financial centres across Europe, North America and Asia Pacific. The office in Kiev employs more than 120 employees and is in constant development.
American Bar Association Rule of Law Initiative (ABA ROLI) is recruiting for the following positions:
SENIOR STAFF ATTORNEY
STAFF ATTORNEY
LEGAL ASSISTANT
The senior staff attorney will manage and implement a Human Rights Project in Ukraine on combating xenophobia, racial and ethnic discrimination.
The staff attorney will manage and implement projects in Ukraine on combating child trafficking, cyber crime and work with the Defense Bar.
Duties and Responsibilities:
Duties and Responsibilities:
Under the management of the Country Director or staff attorneys, the legal assistant will support the projects in Ukraine on combating child trafficking, cyber crime, xenophobia and the work with the Defense Bar.
• Develop training curriculum, manuals, guidebooks and training programs. • Provide technical assistance, expert analysis and co-ordination to relevant partners; • Prepare legal and statistical analysis, research, narra-tive reports, work plans, and memos. • Organize and represent the project in Working Group meetings, roundtables, seminars, conferences and related activities. • Liaise and promote information exchange and pro-gram cooperation with donors, government institu-tions, national and international organizations, and partners. • Analyze and provide recommendations for the government institutions.
Qualifications:
Law degree from a Ukrainian law school; L.L.M. or Ph.D. from a Western University is required; profes-sional legal experience of at least 5 years; prior expe-rience working in criminal law and / or law enforce-ment agency helpful, such as the Ministry of Interior or General Prosecutor’s Office; previous work with an international organization or NGO required; at least 2 years of managerial experience required. Professional fluency in English, Ukrainian and Russian; strong abil-ity to simultaneously manage several projects under pressure, including administrative and financial re-sponsibilities.
• Develop training curricula, manuals, guidebooks and training programs. • Provide technical assistance, expert analysis and co-ordination to relevant partners. • Prepare legal and statistical analysis, research, narra-tive reports, work plans, and memos. • Organize and represent the project in Working Group meetings, roundtables, seminars, conferences. • Liaise and promote information exchange and pro-gram cooperation with donors, government institu-tions, counterparts, national and international organizations, and partners. • Work with government institutions, expert commit-tees, international organizations and NGO partners.
Qualifications:
Law degree from a Ukrainian law school; L.L.M. or Ph.D. from a Western University is a plus; professional legal experience of at least 3 years; prior experience working in criminal law and / or law enforcement agency helpful, such as the Ministry of Interior or General Prosecutor’s Office; previous work with an international organization or NGO preferred; profes-sional fluency in English, Ukrainian and Russian; ex-cellent interpersonal and organizational skills; strong ability to simultaneously manage several projects un-der pressure, including administrative and financial responsibilities
Responsibilities:
• Organize Working Group meetings, roundtables, seminars, conferences; • Assist in the preparation of legal and statistical anal-ysis, research, work plans, memos, articles and addi-tional correspondence necessary in producing monthly, quarterly, annual reports and financial re-ports to donors and partners; • Co-ordinate, monitor, effectively communicate and work with contractors retained for the project (i.e.: translators, editors, etc.), to ensure timely delive-rables of products and services; • Perform administrative tasks, maintaining files, re-ceiving and making phone calls, and organizing and updating resource materials
Qualifications:
Law degree from a Ukrainian law school; professional legal experience of at least 2 years; prior experience working in criminal law and / or law enforcement agency helpful; previous work with an international organization or NGO helpful; professional fluency in English, Ukrainian and Russian; excellent interpersonal and organizational skills; strong ability to simulta-neously manage several projects under pressure, in-cluding administrative and financial responsibilities.
Qualified candidates should submit their CV, a cover letter and list of references in English by fax or e-mail by September 10th, 2010 to: tomelchenko@abaroli.org.ua, GLedbetter@abaroli.org.ua, fax: (44) 459-0157.
Sean's Language Schools presents: ‹ English, Spanish, Italian, French, German languages ‹ Business trainings, corporative lessons in your office ‹ Russian language for foreigners ‹ FREE of charge speaking clubs in general & business English ‹ English language courses abroad for adults and children Tel: (044) 495-44-41, 586-53-84 e-mail: info@seanschools.com.ua www.sls.kiev.ua
9OUR FUTURE STUDENTS MIGHT SEE YOUR AD
HERE +9)6 0/34 % $ 5 # !4 )/ . 3 % # 4 )/ .
PARTNERSHIP FOR EVERY CHILD IS RECRUITING FOR THE FOLLOWING POSITION
PROJECTs MANAGER Projects Manager will be responsible for implementation of two big projects – one in the sphere of social support for care leavers and second in the sphere of developing community based services for strengthening parental capacities of parents. Main responsibilities: project planning and implementation, negotiations with local government partners, management of international and local experts, writing project reports to donors and for public presentation. Cooperation with local business and awareness raising about the projects managed will be an essential part of the job. Requirements: higher education (preferably in social field), management skills, similar work experience of 3 years, knowledge of child care sector in Ukraine, fluency in Ukrainian and English, IT skills. Posts is based in Kyiv with frequent travel to project sites in Kyiv oblast and Poltava. Deadline for applications – September 10, 2010, applications should be sent to info@p4ec.org.ua with “Project Manager� note in subject line. Application forms can be found at www.everychild.org.ua
Employment/Classifieds 31
September 3, 2010
International Renaissance Foundation Announce Strategic Communication and PR Director position
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The International Renaissance Foundation is announcing a call for applications for the position of Strategic Communication and PR Director to manage communication between IRF and internal and external target audiences (NGOs, government, media, donors, etc.), and ensure broad presentation of civil society values upheld by the Foundation. Responsibilities:
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For more detailed job descriptions for both vacancies and in order to apply please visit IRF’s web site at http://www.irf.ua/ The deadline for application is September 16, 2010
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Head of sales Dep’t. / Rep. Office MINI
Requirements: Experience in web graphics 1y+; Experience in raster graphics using adobe photoshop (vector graphics software knowledge and/or hand-drawing skills appreciated); Understanding of web layout, information graphics, usability principles; Basic understanding of html, css principles (deeper knowledge of html, css, block layout etc can be an advantage); Adobe flash skills will be an advantage; Good-motivated, both accurate and creative, deadline-respective personality; Portfolio is mandatory and will contribute up to 80% into our final decision upon candidate. Please, send your CV and cover letter to hr@kyivpost.com indicating the job title in the message subject.
Teacher of Russian/Ukrainian/Travel Assistant
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www.kyivpost.com
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32 Photo Story
www.kyivpost.com
September 3, 2010
Rallies all around
This goat was supposed to symbolize Education Minister Dmytro Tabachnyk and his job performance
Coalition of Participants of the Orange Revolution rallied for freedom of the press in Russia and in Kyiv, outside of the Russian Embassy, on Aug. 31
Ukrainians rallied intensively last week, both at home and abroad. The Coalition of Participants of the Orange Revolution demanded freedom of press in Russia and in Ukraine outside of the Russian Embassy on Aug. 31. Next day, on the first day of school, Ukrainian activists brought a goat to the gates of the Education Ministry, which was supposed to symbolize the minister and his job performance. According to the activists, in less than half a year, he has, among other things, “failed the university entrance campaign 2010, returned corruption to universities,… and introduced compulsory education for five year-olds.” Ukrainian writers Serhiy Zhadan and Irena Karpa rallied in Berlin during President Viktor Yanukovych’s visit against what they see as his attempt to turn Ukraine into a totalitarian state. The rightwing Svoboda Party picketed the Cabinet with demands to make utility rates fair. (Oleksiy Boyko, Ukrainian Photo, courtesy)
Right-wing Svoboda party demaded fair utility rates in front of the Cabinet building
Ukrainian writers rallied in Berlin during the president’s visit