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vol. 16, issue 9
March 4, 2011
Desperate Lives Vasya Shopko, 12, hopes for a kidney transplant in Kyiv’s Shalimov Clinic. (Oleksiy Boyko)
A woman in Shalimov’s Clinic receives hemodialysis in Kyiv as she awaits a kidney transplant. Thousands of Ukrainians need transplants even as an illegal trade in body organs flourishes. (Oleksiy Boyko) BY I R I N A S A N D U L SANDUL@KYIVPOST.COM
CHISINAU, Moldova – Konstantin is desperate. His daughter is sick and needs an operation abroad costing thousands of dollars.
The 30-year-old father sees one option left – to sell part of his body. “I am willing to sell my kidney, in the worst case bone marrow,” he writes in an advertisement on a Ukrainian website, naming his price as 25,000 euros. “Please help!” he signs off.
Cherniavskiy: High tax unjustified in nation BY V L A D L AV R OV LAVROV@KYIVPOST.COM
While Ukrainian businessmen are frantically trying to understand the realities of the new tax code, those who provide accounting and tax consulting services are capitalizing on the uncertainties of doing business in a nation with one of the most complicated and burdensome tax systems. Such is the case with Dmitry
Inside:
Cherniavskiy, a partner with Londonbased firm Tax Consulting U.K., and former interim general director of Olympic Stadium, the main venue for the Euro 2012 soccer championship. Cherniavskiy’s firm specializes in business accounting, financial reporting and tax optimization. Last fall, the Kyiv Post visited one of the seminars, co-organized by Tax Consulting U.K., where business representatives were taught how to avoid problems Æ10
News Æ 2, 15 – 17 Opinion Æ 4, 5, 15
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Konstantin is part of a growing trend in Ukraine and its neighboring former Soviet countries to sell organs for cash. Some donors are tempted by the chance to make a quick buck. Others are tricked into the illegal organ trade, recruited by intermediaries who then
INSIDE: • Special Business Focus on auditing and accounting profession. Pages 8-14 • Top 10 stories of the week on www.kyivpost.com and www.kyivpost.ua. Page 2 • Are Ukrainian weapons being used to quell Libya’s uprising? Page 2 • Firtash goes on buying spree of chemical, fertilizer plants. Page 6
sell their body parts at a huge profit. “Medicine is business, and it always will be,” said Ruslan Salyutin, who is in charge of coordinating organ transplants at Ukraine’s Health Ministry. A search on the Internet shows there is no shortage of people Æ17
Gongadze probe shifts from Kuchma, Lytvyn BY PE TE R B Y R N E a nd O LE SI A O LE SH KO BYRNE@KYIVPOST.COM and OLESHKO@KYIVPOST.COM
As the 11th anniversary of journalist Georgiy Gongadze’s murder approaches this fall, prosecutors appear to be angling yet again to ensure that the two highest-ranking suspects – ex-President Leonid Kuchma and parliament speaker
Business Æ 6 – 14
Employment/Real Estate/ Lifestyle Æ 19 – 29, 32 Classifieds Æ 30, 31
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Nicolae Brdan of Molodova shows marks from where a kidney was removed. (Nikolae Pozhoha)
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Volodymyr Lytvyn – never face their day in court. On March 2, a Kyiv appeals court sided with General Prosecutor Viktor Pshonka in downgrading the status of the investigative journalist’s murder on Sept. 16, 2000. Pshonka is a key ally of current President Viktor Yanukovych, who was handed his start in national politics when Kuchma appointed him prime minister in 2002. Now authorities consider the Æ16
2 News
MARCH 4, 2011
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March 4, 2011
Vol. 16, Issue 9 Copyright © 2011 by Kyiv Post The material published in the Kyiv Post may not be reproduced without the written consent of the publisher. All material in the Kyiv Post is protected by Ukrainian and international laws. The views expressed in the Kyiv Post are not necessarily the views of the publisher nor does the publisher carry any responsibility for those views.
Gaddafi firing on Libyans with Ukrainian weapons?
Газета “Kyiv Post” видається ТОВ “ПаблікМедіа”.
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прим. Ціна за домовленістю. Матерiали, надрукованi в газетi “Kyiv Post” є власнiстю видавництва, захищенi мiжнародним та українським законодавством i не можуть бути вiдтворенi у будь(якiй формi без письмового дозволу Видавця. Думки, висловленi у дописах не завжди збiгаються з поглядами видавця, який не бере на себе вiдповiдальнiсть за наслiдки публiкацiй. Засновник ТОВ “Паблік-Медіа” Головний редактор Брайан Боннер Адреса видавця та засновника співпадають: Україна, м. Київ, 01034, вул. Прорізна, 22Б
BY YULIYA RA SK EV ICH RASKEVICH@KYIVPOST.COM
Allegations that Ukrainian pilots were strafing anti-government protesters in Libya turned out to be wide of the mark. However, what may be true is that Ukrainian weapons exports are being used to shoot protesters trying to bring down the nation’s dictator, Colonel Muammar Gaddafi. Western newspapers, including the New York Times, have reported that forces loyal to Libyan leader Colonel Muammar Gaddafi have used Kalashnikovs to fire on crowds of protesters. United Nations Secretary
General Ban Ki-moon estimates that more than 1,000 people have died after a week of protests. Libya was the third largest importer of Ukrainian small and light weapons, such as Kalashnikovs, from 2004 to 2007, selling 101,500 weapons to the North African country, according to a report by the Stockholm International Peace Research Institute (SIPRI), a Swedish research center. Ukraine’s long history of exporting arms to African countries has drawn international condemnation for fueling conflicts there. Ukraine’s state-controlled arms dealer Ukrspecexport, which exports and
imports military and special products and services, declined to comment on whether Kalashnikovs were exported to Libya and other African countries. Appearing on Ukraine’s Inter television channel on Feb. 25, Serhiy Bondarchuk, who directed Ukrspetsexport for nearly five years until last year, denied that Ukraine has sold arms to Libya during his tenure. Bondarchuk has said Ukraine only performed maintenance on Soviet military technologies. He added that accusations accusing Ukraine of arming Libya are being spread by countries that compete with Kyiv in the global arms export trade. Valentyn
Nalyvaichenko, formerly head of the SBU [Security Service of Ukraine], echoed that claim earlier that week while on television. But according to SIPRI, Ukraine is the 11th largest exporter of major conventional weapons worldwide, accounting for around 2 percent of all international exports of major conventional weapons. Libya was the third-largest importer of Ukrainian arms from 2006 to 2007. A SIPRI expert said he is not certain whether the weapons Ukraine exported to Libya included Kalashnikovs. “It is difficult to conclude precisely if these weapons are from Æ16
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Оксана Гриценко Коли на органічну ферму Юрія Сергеєва приїздять відвідувачі та дають дітям склянку молока, вони інколи говорять таке: “Ти пий, це як кока-кола, тільки біле і теж смачне”. Ці слова, підкріплені щорічним ростом продажів недешевої органічної продукції ферми — прямий доказ того, що така продукція в Києві потрібна і ця потреба буде тільки зростати.
Мария Шамота У жителей села Коцюбинского, что всего в трех километрах от Киева, - трагедия. Они могут лишиться леса, который многие годы служил их излюбленным местом отдыха. А все потому, что в 2008 году местные власти раздали частным лицам землю вокруг села, расширив его границы за счет прилегающего леса. Этого можно было бы избежать, будь у Коцюбинского сделанный по всем правилам генеральный план развития. Генплан населенного пункта — это документ, толщиной с небольшую книжку, в котором описаны направления развития города или села и схематически прорисованы планы его застройки на
годы вперед. Например, при Советском Союзе генплан разрабатывался больше, чем на 20 лет. Несмотря на то, что документ этот достаточно общий, без детализации территории, его наличие может хотя бы частично решить проблему полулегальной выдачи разрешений на застройку, уверены эксперты...
Символ Сочинской олимпиады – плагиат?
Белый мишка, Леопард Барсик и Зайка – символы олимпиады в Сочи-2014.
Kyiv Post Новые талисманы Сочинской олимпиады 2014 должны были стать поводом для гордости и восторга, но вместо этого стали причиной скандалов. Автора белого мишки обвинили в плагиате, а в имидже зверушек нашли политический подтекст. В последние выходные февраля в России завершилось смс-голосование в поддержку талисманов зимней олимпиады в Сочи 2014 года. Ими стали сразу
трое зверей – Белый мишка, леопард Барсик и Зайка. Руководство Первого канала утверждает, что в голосование приняли участие более миллиона человек, 28% из которых поддержали леопарда. Мнение россиян совпало с симпатиями премьер-министра РФ Владимира Путина, который еще до объявления окончательных результатов сказал, что «леопардов на Кавказе истребили, но теперь они возрождаются»...
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TEN MOST-READ STORIES OF THE WEEK ON
ДЕСЯТЬ САМЫХ ЧИТАЕМЫХ СТАТЕЙ НЕДЕЛИ НА
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На Майдані 3 тис. киян дивляться телепроект з Януковичем
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3
March 4, 2011 Advertisement
European Business Association News
,EADERS 4ALK Leaders Talk: Today we interview Pavel Cetkovsky, CEO of JSC Erste Bank
&
OUNDED IN AS THE FIRST !USTRIAN SAVINGS BANK %RSTE "ANK OPENED ITS BRANCH IN 5KRAINE TO EXPAND ITS ACTIVITIES IN #ENTRAL AND %ASTERN %UROPE ,UCKILY THE "ANK HAD ENOUGH TIME TO GATHER MOMENTUM BEFORE CRISIS AND WEATHER IT TO LATER ESTABLISH ITSELF AS HIGHLY RELIABLE BOTH AMONG CREDIT AGENCIES AND 5KRAINIAN CORPORATE AND RETAIL CLIENTS
0!6%, #ETKOVSKY
#%/ OF *3# %RSTE "ANK
9OU HAVE BEEN IN 5KRAINE FOR FIVE YEARS BY NOW WHAT SERVICES DO YOU PROVIDE TO 5KRAINIAN CLIENTS !FTER ENTERING THE 5KRAINIAN MARKET IN TODAY WE SERVE ABOUT CLIENTS IN OUR BRANCHES AND CORPORATE CENTERS IN ALL REGIONS OF 5KRAINE )N 5KRAINE %RSTE "ANK PROVIDES SERVICES BOTH TO RETAIL CLIENTS MICRO CLIENTS AND ALSO TO THE REPRESENTATIVES OF SMALL AND MIDDLE BUSINESS AND OF COURSE TO THE LARGE CORPORATIONS /UR BANK GIVES THE WIDE RANGE OF BANK SERVICES SUCH AS CASH ACCOUNTS CREDITS DEPOSITS FINANCING OF BUSINESS PROJECTS TREASURY AND OTHERS
7HAT CAN BE DONE BY THE %UROPEAN 5NION TO HELP SUCH COMPANIES AS YOURS 4HE %5 DOES NOT PROVIDE THE DIRECT SUPPORT TO THE PRIVATE COMPANIES OR BANKS (OWEVER THERE IS A CONTINUING CONVERGENCE PROCESS BETWEEN 5KRAINE AND THE %5 TO COPE WITH SOME CHALLENGES OF TODAYlS WORLD )T IS IMPOR TANT TO BRING ACCOUNTING TAX AND LEGAL SYSTEMS IN A BETTER CONCORDANCE WITH THE %5 STANDARDS IN ORDER TO HELP 5KRAINE ENTER THE %5 IN THE FUTURE 4HIS IS DEFINITELY A DISPUTABLE QUES TION IF SUCH PROCESSES NOW ARE HAPPENING IN AN OPTIMAL TEMPO BUT THE VERY FACT THAT SUCH PROCESSES ARE UNDERWAY MAKES BUSINESS IN 5KRAINE INCLUDING BANKING SECTOR MORE TRANS PARENT EFFICIENT AND UNDERSTANDABLE 7HAT SKILLS ARE MOST IMPORTANT FOR A BANKER IN 5KRAINE ) THINK A PERSON IN A POSITION OF A BANKlS #%/ SHOULD HAVE A BROAD UNDERSTANDING OF BUSINESS IN 5KRAINE IN GENERAL SHOULD BE AWARE OF SOCIAL AND POLITICAL CHANGES AS WELL AS OTHER FIELDS AND HAVE THE UNDERSTANDING OF A BROADER PICTURE AND HOW ALL THE ABOVE INTERRELATE /NE SHOULD BE ABLE TO LISTEN TO HIS COLLEAGUES AND DISCUSS PROBLEMS TOGETHER !LSO A PERSONAL CHARISMA HELPS A LOT
*O 'PDVT The EBA revises new Technical Regulation for Food Products Labelling On 28 October 2011, the State Committee on Technical Regulation and Consumer Policy issued the Order No 487 “On Approving Technical Regulation Concerning Rules for Food Products Labelling� which was registered by the Ministry of Justice of Ukraine on 11 February 2011. This important development both for importers and producers of foodstuffs operating on Ukrainian market stipulates rules and regulations of food labelling. The positive side of it is that producers and importers will have 9 months from the date of official publishing of the regulation to bring the labelling of their products in line with requirements set by the Technical Regulation. While the EBA welcomes adoption of Technical Regulation on the whole as a steps towards harmonisation of technical regulation system in Ukraine with the European norms, certain provisions of the regulation may potentially lead to misinterpretation and malpractice, companies say. Head of the EBA Food Committee, Quality and certification expert krainian authorities have developed a new technical Regulation related to food labelling. The objective of new labelling regulation is perfect because it aims to adapt Ukrainian legislation to the EU. What we see is that a lot of EU requirements were used for developing of this new Regulation. But after analyzing the draft documents we found that some provisions of the new labelling norm differ from the EU legislation and are not in line with the Codex Alimentarius. Speaking of the inconsistencies, we see introducYEVHEN Kaskun tion of a voluntary “GMO free� labelling instead of a compulsory one, mandatory indication of regulatory document in conformity with which the product was manufactured in Ukraine, lack of a clear definition of the “traditional� product. These discrepancies can potentially create additional barriers for products of the EU origin and tough compliance requirements for Ukrainian manufactures. As a result, product prices may increase and, obviously, Ukrainian consumers are likely to have a smaller range of foodstuffs on the market and higher prices for certain groups of foodstuffs.
U
General Manager of Danone Ukraine n general, our company welcomes the introduction of this document, which indicates that Ukraine is following the European practice. At the same time, current version of the Technical Regulation is not clear and definite, that is why open to interpretation, which is not helpful at all for business and consumers. That could also substantially constrain the application of the Technical Regulation for FMCG companies, because the final understanding of what the requirements are that the product packaging must meet are missing.
I
7HICH LEGISLATIVE OR REGULATORY NORMS DO YOU THINK THE GOVERNMENT SHOULD PAY CLOSER ATTENTION TO IN ORDER TO MAKE THE WORK OF BANKING SECTOR MORE EFFICIENT
4O REACH HIGHER OPERATIONS EFFICIENCY OF BANKS IN 5KRAINE LEGISLATION IN THE DOMAIN OF CREDITORSl RIGHTS PROTECTION SHOULD BE 7HAT ARE YOUR PROJECTIONS AS FOR DEVELOPED 7E WOULD ALSO WELCOME BETTER BUSINESS DEVELOPMENT IN SHORT TERM REGULATION OF LEGISLATIVE TAX ACCOUNTING OF PERSPECTIVE COLLATERALIZED PROPERTY SALE AS WELL AS A MORE )N THE NEAREST FUTURE WE WILL FOCUS ON THE TRANSPARENT WORK OF COURTS AND BETTER REGU PROSPECTS OF CORPORATE BUSINESS DEVELOP LATED FOREIGN CURRENCY LENDING PROCEDURES MENT BECAUSE THERE IS CERTAIN REDISTRIBU (AS THE BANKING SECTOR FULLY RECOVERED TION ON THE BANK MARKET WHICH WILL RESULT AFTER THE CRISIS 7HAT ARE YOUR FORECASTS IN THE BEST CLIENTS BEING ABLE TO CONSIDER FOR THIS FINANCIAL YEAR VERY APPEALING BUSINESS OFFERS FROM THE )N THE BANKING SYSTEM WAS GRADUALLY BANKS (OWEVER AN ACTIVE DEVELOPMENT COMING BACK FROM TOUGH RECESSION 7ITH THIS IN OF BUSINESS FINANCING IS HAMPERED BY THE MIND WE UNDERSTAND THAT SEVERAL FACTORS WILL HIGH LEVEL OF COMPANIESl INDEBTEDNESS INFLUENCE THE DEVELOPMENT OF BANKING SECTOR IN 4HAT IS WHY IT IS IMPORTANT TO INCREASE &IRSTLY WE CAN SPEAK OF THE MAINTENANCE ONElS OWN SHARE CAPITAL BY MEANS OF DIRECT OF POSITIVE MACROECONOMIC TENDENCIES STARTED INVESTMENTS )N THE CORPORATE SECTOR THE BACK IN WHICH WILL RESULT IN BANKS BEING %RSTE "ANK POSSESSES UNIQUE EXPERTISE IN ABLE TO FURTHER REDUCE EXPENSES FOR CREATING THE SPHERE OF MUNICIPALITIESl AND FARM SEC BANK RESERVES 3ECONDLY REDUCTION OF DEPOSIT TOR FINANCING AND THE PROJECTS OF ENERGY INTEREST RATES WHICH IS CRUCIAL FOR FACILITATING A EFFECTIVENESS THAT IS WHY WE WILL ESPECIALLY MORE ACTIVE AND AFFORDABLE CLIENTSl LENDING FOCUS ON THESE SPHERES
4HINGS TO KNOW EBA assists the government in updating industrial standards. On 1 August 2011, a new standard on building materials, thermal insulation products of glass staple fibers will come into force, marking Ukraine’s further approximation to the European acquis communautaire. Insulation for buildings and other essential construction materials standards have remained unattended for decades leaving companies to operate by the Soviet outdated standards. With this industry sector rapidly developing, two years ago the EBA in the framework of its Mineral Wool Insulation Committee realized the huge necessity to come up with a suggestion of a new document, since the Standard* which is used currently is obsolete and contains massive discrepancies. Committee members with assistance of the Scientific and Research Institute of Construction Materials and Products have initiated and developed the updated version of the Standard on Glass Wool Insulation Products. This newly developed Standard is a national-scope document based on the European experience, namely EU Standard EN 13162 Thermal insulation products for buildings - Factory made mineral wool (MW) products - Specification, which sets forth the requirements for factory made mineral wool products, which are used for the thermal insulation of buildings as well as describes product characteristics and includes procedures for testing, evaluation of conformity, marking and labelling. * Standard on Construction Material. Thermal Insulation Materials of Staple Glass Wool. Technical Conditions DSTU Б В.2.7-56:96
www.eba.com.ua
DARIO Marchetti
Head of Corporate Affairs, Unilever Ukraine LLC he technical regulation (TR) for food labelling has been initially elaborated with the aim to adapt the Ukrainian legislation to the EU rules relating to the labelling of foodstuffs. A significant part of this draft regulation is indeed very much in line with the existing EU legislation. However, some points contradict with it and require significant amendments and/or clarifications (such as font size requirement, GMO-free labelling, some product definitions in the Appendices, the appropriateness of the timing of the transitory period, unconditional ban on health claims formulated, administrative approval of any new product put on the Ukrainian market, etc.). Speaking on the example: TR regulates the size INNA Derkach of the font used at the labels: the size of the name of the product should be not less than 2mm, all other obligatory information should be not less than 0.8mm. There is no such point that regulates the font size in the relative documents, namely EU Directives and Codex Stan. Currently, companies label their products in several languages for several countries to sell on, but produced on one production facilities for those markets. Such requirement might lead also to extra unplanned costs. Thus, such kind of disagreements might lead to the breaking of WTO rules – as Ukraine should not discriminate in any way against imported products.
T
Head of CC&CA, Nestle in Ukraine estle took an active part in developing of this document, working together with different organizations and partners. In general, we believe that this document is the step forward that will allow providing consumers with all proper information about the product. One of the most positive facts is that the EU Directives requirements laid the foundation for this document. We consider that this will ensure a quick transition of national and imported products to the new requirements. It also should be noted that the document provides sustainable 9 month transition period for new rules that will allow producers and importers GENNADII to prepare for all necessary changes without considerable financial Radchenko losses. At the same time we should mention that not all of the requirements of the document seem to be reasonable. For example, the requirement to declare the maximum permissible divergence from the nominal net weight by mentioning the number of relevant normative documents does not give any useful information to consumers, however, creates difficulties for imported goods. Besides, the requirement for the font size of the product name and font size for other technical information is not harmonized with the requirements of EU Directives and could be the subject for further disputes.
N
7E LOOK FORWARD TO YOUR FEEDBACK AT
PGGJDF!FCB DPN VB
4 Opinion
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March 4, 2011
Editorials
More disgrace The Kyiv Court of Appeals this week upheld the prosecutorial downgrading of journalist Georgy Gongadze’s slaying from a contract killing to a “killing on verbal command.” The ruling effectively shields the two suspected masterminds – former President Leonid Kuchma and current parliamentary speaker Volodymyr Lytvyn, who served as Kuchma’s chief of staff. Credible evidence exists implicating Kuchma and Lytvyn, who both deny involvement. That includes testimony by the alleged killer, former Interior Ministry General Oleksiy Pukach, and audio recordings made by a former presidential bodyguard. Yet the almost 11-year murder investigation seems set to end without going higher up the chain-of-command than late Interior Minister Yuriy Kravchenko, whose death in 2005 from two gunshot wounds to the head was ruled a suicide. The authorities under President Viktor Yanukovych are demonstrating the same lack of desire to get to the bottom of who ordered the murder as his predecessors. If the authorities had shown any of the creative zeal in investigating the case that they have invested in protecting the most senior officials from blame, the case surely would not have dragged on for over a decade. Dead men can’t talk – either to defend themselves or to point the finger at someone else – which is why Kravchenko is a convenient place to end the investigation. If prosecutors don’t look any further than him, we may never find out who really ordered the murder and how involved officials above him were. In continuing the cover-up, the current authorities are proving that for all their bombastic defense of their record on democracy, they are failing to pass a crucial test – to protect citizens from wrongdoers by ensuring a thorough investigation into crimes, no matter how highly ranked and well-connected the alleged perpetrators.
What ‘list’? The Big Lie is a propaganda technique, coined by Adolf Hitler, for an untruth so “colossal” that no one would believe that someone “could have the impudence to distort the truth so infamously.” While certainly not anywhere near the same category as Hitler, officials in President Viktor Yanukovych’s administration have for months referred to a “list” of public officials and political allies who are under criminal investigation. Apparently to defuse widespread views that political opponents are being persecuted, officials recently referred to the “list” during meetings in Washington, D.C. In a Feb. 28 letter to the Washington Post, Ukraine’s Ambassador to the United States Olexander Motsyk wrote: “There are more than 360 ongoing criminal cases against representatives of the current government in Ukraine, with more than half of them at the senior level,” Motsyk said. “Everyone should be held accountable for their actions.” According to Oleh Voloshyn, the Foreign Ministry spokesman, Justice Minister Oleksandr Lavrynovych talked about the “list” in Washington D.C. during his Feb. 13-17 meetings there. Voloshyn followed up in an article appearing in the EUObserver on Feb. 8, saying more than 350 officials are subjects of criminal investigations. “By comparison, only 73 members from Tymoshenko’s Batkivshchyna Party are targets of criminal investigation,” he noted. Serhiy Lyovochkin, the president’s chief of staff, gave a different figure on Jan. 20, when told journalists that 166 criminal investigations involve “senior” current officials. However, is it true? If so, where’s the list? We challenge anyone in the administration to name the senior-level officials – more than 180 of them, if Motsyk is to be believed – who are under investigation. Without the list, it’s hard to believe the claims, as they are not backed up by credible evidence. In fact, Liya Elchenko, spokeswoman for the Justice Ministry, said on March 2 that no such list exists officially. A General Prosecutor’s Office spokesperson also denied existence of a list. “The General Prosecutor’s Office does not differentiate suspects in criminal investigations based on political affiliation,” spokesman Yuriy Boychenko said. According to Boychenko, state prosecutors in 2010 opened more than 18,000 criminal cases involving alleged illegal acts committed by former and current public officials. “The number of former and acting public officials involved far exceeds several hundred,” he said. But neither he, nor any other top official, provided a “list” or other evidence that there are dozens of high-ranking government officials under investigation. So far, most of the investigative firepower is targeted at political opponents locked away for excessive amounts of time in pre-trial detention cells. To administration officials, we say: Show the public the list, or stay silent. Otherwise, few will believe what you’re telling us. Remember, as Motsyk said: “Everyone should be held accountable for their actions.”
NEWS ITEM: Ukraine’s internationally famous women’s group, Femen, employed one of their trademark topless protests on March 2. This time, the object of their ire was a New Zealand radio station competition to “win” a Ukrainian wife. The Rock FM radio station announced the winner of the prize, a winemaker named Greg, on Feb. 28. The competition winner is due to fly into the coal mining city of Donetsk on March 23, before going to Zaporizhia, as part of a 12-day allexpenses paid holiday. The winner gets to choose a woman from the Endless Love Agency, which matches Ukrainian women looking for New Zealand men.
“WOMEN ARE NOT PRIZES!”
are We sex not cts! e obj
Stop loo king at my brea sts!
S tou ex go rist ho , me !
NEWS ITEM: Just when it looked like Kyiv would be buried in snow and ice for weeks to come, the sun popped out and the high temperatures climbed to just a notch above freezing. Spring, it seems, is on its way again!.
“This is smuggling, you know, it’s illegal!”
“But I want free trade with Europe!”
Published by Public Media LLC Jim Phillipoff, Chief Executive Officer Brian Bonner, Chief Editor Deputy Chief Editors: Katya Gorchinskaya, Roman Olearchyk Editors: Alexey Bondarev, Valeriya Kolisnyk, James Marson, Yuliya Popova Staff Writers: Tetyana Boychenko, Peter Byrne, Oksana Faryna, Natalia A. Feduschak, Oksana Grytsenko, Kateryna Grushenko, Nataliya Horban, Vlad Lavrov, Olesia Oleshko, Yura Onyshkiv, Kateryna Panova, Mark Rachkevych, Yuliya Raskevich Nataliya Solovonyuk, Maria Shamota, Irina Sandul, Svitlana Tuchynska Photographers: Oleksiy Boyko, Joseph Sywenkyj. Photo Editors: Yaroslav Debelyi, Alex Furman Chief Designer: Vladyslav Zakharenko. Designer: Angela Palchevskaya Marketing: Iuliia Panchuk Web Project: Nikolay Polovinkin, Yuri Voronkov, Maksym Semenchuk Sales department: Yuriy Timonin, Maria Kozachenko, Elena Symonenko, Sergiy Volobayev Subscription Manager: Nataliia Protasova Newsroom Manager: Svitlana Kolesnykova, Office Manager: Anastasia Forina
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NEWS ITEM: Ukraine’s cigarette factories churned out 102 billion cheap, lowly taxed cigarettes last year – tens of billions more than even the nation’s heavy-smoking population inhaled. As a consequence, the nation is a leading source of illegally smuggled cigarettes into the European Union, where nations have enacted high taxes and public smoking bans to cut the smoking rate and improve public health. Consequently, numerous arrests of suspected cigarette smugglers from Ukraine and their accomplices have taken place in recent months. Among them include 176 Romanian police officers and customs officers, many of them working on the border with Ukraine. Moreover, on Feb. 18, eight crew members of a Ukraine-flagged freighter were arrested off the coast of Greece after authorities discovered crates containing 19.9 million cigarettes. (Drawings by Anatoliy Petrovich Vasilenko)
Feel strongly about an issue? Agree or disagree with editorial positions in this newspaper? The Kyiv Post welcomes letters to the editors and opinion pieces, usually 800 to 1,000 words in length. Please e-mail all correspondence to Brian Bonner, chief editor, at bonner@kyivpost.com or letters@kyivpost.com. All correspondence must include an e-mail address and contact phone number for verification.
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March 4, 2011
Open Letter Committee to Protect Journalists: We’re ‘alarmed by manipulation’ of still-unsolved Gongadze case Editor’s Note: The following is a statement issued on March 2 by the New York City-based Committee to Protect Journalists regarding what appears to be a continued coverup by Ukrainian authorities in the 10-year murder of Ukrainian journalist Georgiy Gongadze.
The Committee to Protect Journalists is deeply disturbed by the recent actions of Ukrainian authorities that threaten to upend progress in the 10-year-old investigation into the September 2000 abduction and murder of independent journalist Georgiy Gongadze. The Kyiv Court of Appeals ruled today to reject a second appeal by Myroslava Gongadze, the journalist’s widow, against the prosecutorial downgrading of the status of the murder from a contract killing to a
“killing on verbal command.” The new status of the case, in effect, pegs the responsibility for commissioning the crime on a single culprit – a dead interior minister – and technically precludes investigators from going after a larger circle of suspected masterminds. A two-year-long trial of three suspected accomplices in Gongadze’s murder ended in 2008 with convictions, but no one has been held responsible thus far for masterminding the crime. Prosecutors have failed to investigate former and current highranking officials – including former President Leonid Kuchma and then-head of presidential administration and current Parliament Speaker Volodymyr Lytvyn – who have long been suspected of being involved in Gongadze’s killing.
“This is nothing but an attempt by the authorities to close off further prosecutions in the murder of Georgy Gongadze,” CPJ Europe and Central Asia Program Coordinator Nina Ognianova said. “All perpetrators of this heinous crime, regardless of their rank, influence, and position, must be brought to justice.” The Kyiv Court of Appeals ruling comes on the heels of procedural violations committed by investigating authorities in the case. In a March 1 public letter to Ukrainian President Viktor Yanukovych, CPJ laid out its concerns about seeming official attempts to quickly wrap up the most significant stage of the Gongadze investigation. Gongadze, 31, editor of the independent Internet newspaper Ukrainska Pravda – which often Æ15
Yanukovych’s assault on Ukrainian history
No reference to Kruty The revised textbooks suffer from other important deletions, including a reference to the Battle of Kruty. Former President Viktor Yushchenko called the 1918 battle, in which around 200 Ukrainians were massacred trying to stave off 4,000 Bolsheviks advancing on Kyiv, “the symbol of the liberating struggles of Ukrainians for freedom in the 20th century.” In Soviet times, the Kruty victims were considered traitors or simply ignored. A description of the Ukrainian Insurgent Army (UPA) as Ukrainian patriots fighting for the country’s independence from both Nazi Germany and the Soviet Union was dropped from the text, as was a passage about UPA veterans and their families being subsequently sent to the gulag by Soviet authorities and called “enemies of the people.” A section about Soviets persecuting Ukrainian patriots was also deleted. Yanukovych, for his part, said in an interview last month: “We will not eliminate anything from Ukrainian history.”
Deleting ‘man-made’ from famine Some events have been rewritten to correspond to Moscow’s version of history. The man-made famine, or Holodomor, engineered by Joseph Stalin in 1932-
VOX populi WITH DARYNA SHEVCHENKO
What is the status of women in Ukraine as we approach the March 8 Women’s Day holiday? Halyna Serdiuk, engineer “It usually depends on the family. In most families, people do adhere to women’s rights. They usually do not in poor families. I think it mostly depends on the family’s social status.” Taras Stasiv, lawyer “I think we generally do adhere to women’s rights, but in comparison with European standards, we need to pay more attention to this. There are problems with the women’s right to labor. Most employers prefer men, plus men’s work is usually better paid.” Oleh Gorohov, artist “I think that everything is fine with the women’s rights in Ukraine.”
AL E X A C H O P I V S K Y
“One Ukraine, One History” – reads the text of billboards splashed across downtown Kyiv. But just what does that history encompass? More than a year into office, the government of President Viktor Yanukovych revised fifth-grade history textbooks to delete certain key events from Ukrainian history, including the 2004-05 Orange Revolution. The selective teaching of Ukraine’s history and the government’s moves to curb university autonomy are reinforcing concern that the country is moving away from the West and becoming more synchronized with Russia, and in some cases, even endorsing Moscow’s take on Ukrainian history. The fifth-grade textbook under the previous administration referred to the Orange Revolution as the “Orange miracle,” according to Vakhtang Kipiani, the editor-in-chief of “Istorichna Pravda.” It was an interpretation he says that lacked objectivity, “but simply to throw out the Orange Revolution, that’s not right,” Kipiani said. A lawmaker with the ruling Party of Regions and a member of the Parliamentary Committee on Education and Science, Maksym Lutsky, defended the change: “The Orange Revolution needs to be burned out of history because of what its instigators did to the country.”
Opinion 5
People march with torches in Lviv in Jan. 29. The march was organized to honor people who died during a battle on Jan. 29, 1918, while defending the Ukrainian capital from the Bolsheviks. (Pavlo Palamarchuk)
33, which starved millions of Ukrainians to death, was revised to delete the word “man-made.” This contradicts Ukraine’s official view established by law that the Holodomor was a deliberate act of genocide against the Ukrainian people. Russia does not recognize the Holodomor as ethnic genocide, but rather the result of the disastrous agricultural policies of the period. Moscow believes the famine was a common tragedy of the peoples of the Soviet Union, a point of view Yanukovych last year endorsed before the Council of Europe. Russia in its so-called near abroad is actively propagating its viewpoint regarding the Holodomor. According to documents released by Wikileaks, Britain’s Prince Andrew, a frequent visitor to the region, said that Azerbaijani President Ilham Aliyev received a letter from Russian President Dmitry Medvedev “telling him that if Azerbaijan supported the designation of the Bolshevik artificial famine in Ukraine as ‘genocide’ at the United Nations, ‘then you can forget about seeing [disputed territory] NagornoKarabakh ever again.’” Prince Andrew said that every single other regional president, except one, had told him of receiving similar “directive” letters from Medvedev. Viktor Musan, the author of one of the fifth-grade textbooks, said he got close to 20 recommendations regarding the rewrite, according to “Ukrainska
Pravda,” many of them related to Russian politics in Ukraine The ministry, for its part, has denied any involvement in rewriting the book. “The text is up to the authors,” Oleksandr Udod, an Education Ministry official responsible for textbooks, told “Ukrainska Pravda.” He also said the changes will help “avoid excessive politicization.” But academics are skeptical, calling out politicians’ “meddling” in the historical sphere. “Intellectuals need to have freedom to pursue their research and to look critically and freshly at the past,” says Father Borys Gudziak, the Harvard-trained rector of Ukrainian Catholic University in Lviv. “The ministry is proposing that history textbooks in Ukraine be aligned with the Russian version of history, in which Stalinism is viewed less critically -- and sometimes even positively as a time of great development of the Soviet Union.”
Lilia Solovey, homemaker “Well, everything is relative and individual. Some women are born to devote their lives to their families. Others find themselves in social work. Our women still very often experience such attitudes as: ‘Don’t do this! Don’t touch that! Don’t go there!’ Most of all, I like Danish and Norwegian patterns. They show that a woman should always be equal in any situation.” Anastasia Merezhko, artist “There are many problems with women’s rights. Lots of foreigners come here and use this situation. For example, recently there was a scandal [in which a] Ukrainian woman was practically sold abroad. Now all these flourish, I mean prostitution and slavery. We should finally start concerning ourselves with this!”
‘Umbilical cord’ to Russia “Minister [of Education, Science, Sport, and Youth Dmytro] Tabachnyk and the leaders of the ministry are anti-Orange, anti-democratic, anti-West people,” Kipiani said. “That’s why correspondingly at their level, as much as they can, they are trying to clean out the heritage of the Orange Revolution. Some in the current leadership are connected by an Æ15
Vox Populi is not only in print, but also online at kyivpost.com with different questions. If you have a question that you want answered, e-mail the idea to kyivpost@kyivpost.com.
6 Business
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March 4, 2011
Formidable Firtash in flurry of chemical acquisitions BY P E T E R B Y R N E BYRNE@KYVIPOST.COM
A Ukrainian billionaire with close ties to President Viktor Yanukovych has bought a third domestic chemical plant in a flurry of acquisitions since September that, experts say, demonstrates his increased clout one year under the nation’s new leadership. Cut out of the region’s lucrative natural gas trading business by former Prime Minister Yulia Tymoshenko, Dmytro Firtash is back in the mix of big business in Ukraine and appears more influential and formidable than ever. Less than a year after the election of Yanukovych, presidential ally Firtash landed an arbitration court ruling in Stockholm, Sweden, that returned billions of dollars worth of natural gas from the state to the controversial RosUkrEnergo gas trader. Tymoshenko had seized the 11 billion cubic meters
of gas as part of a 2009 agreement with Russia, but the state reportedly dropped the claim to the gas after Yanukovych took power. Firtash coowns the Swiss-registered trader with Russia’s Gazprom, with 45 percent and 50 percent shareholdings, respectively. Now Group DF, Firtash's holding company, says he has acquired Cherkassy Azot fertilizer plant. They didn’t reveal a price, but another Ukrainian businessman who sold it has been publicly asking for $800 million. Analysts estimate Firtash may have spent “billions� to acquire Cherkassy Azot and two other chemical plants since September, the others being Stirol and Severodonetsk-based Azot. All three plans were sold by other Ukrainian businessmen. Firtash has said he is interested in buying a fourth chemical producer, the state-owned Odessa Portside Plant, which he envisions as a key hub for expanding his group’s portfolio.
ÆOn the move PETER VANHECKE was
Dmytro Firtash
Oleksandr Paskhaver
Analysts say if all the deals go through, Firtash – owner of Viennabased chemical group Ostchem – will become one of the largest producers of fertilizers and other chemicals in
the European Union and former Soviet Union regions. “The deals show the clear preference of top government officials for this oligarch,� said lawmaker Volodymyr
Send On the Move news to otm@kyivpost.com or contact Kateryna Panova and Oksana Faryna at 234-6500. It should include a photograph of the individual who has recently been appointed to a new position, a description of their duties and responsibilities, prior experience as well as education. Note: The Kyiv Post does not charge for publishing these notices or any news material.
ROMAN NASIROV was
appointed chief executive officer at Ukrnafta, the country’s biggest oilproducing company, majority owned by the government but long managed by minority shareholders affiliated with Ukraine’s Privat business group. Vanhecke had worked at Renaissance Capital since 2006 and had been CEO for Ukraine and Central and East Europe since 2008. Prior to that he worked in investment banking in London, Frankfurt and Moscow for Dresdner Kleinwort. He also worked in the mergers and acquisitions departments of Wasserstein Perella & Co in London and Lazard in Paris. Vanhecke was also a strategic consultant for the Boston Consulting Group and a lawyer for Baker & McKenzie.
Bondarenko, an ally of Tymoshenko, who lost the 2010 presidential election to Yanukovych. “The deals illustrate the tendency of the president and his inner circle to follow old Soviet management style, which equates power with ownership,â€? economist Oleksandr Paskhaver told the Kyiv Post on March 3. “Consolidating assets is second nature for them.â€? Appointed to an advisory role to Yanukovych last December as cochair of a council on economic and social issues, Firtash has also been described as a longtime friend of Yanukovych’s chief of staff Serhiy Lyovochkin. He is also reportedly close with Energy Minister Yuriy Boyko and Security Service of Ukraine chief Valeriy Khoroshkovsky. While serving as prime minister, Tymoshenko alleged that Lyovochkin and Boyko were de facto benefactors of Firtash’s interests in RosUkrEnergo; the charge is denied by Yanukovych, Lyovochkin Æ7
appointed acting head of Renaissance Capital for Central and Eastern Europe. He will also continue in his position as head of equity and the debt product group for Renaissance Capital in the region. Nasirov joined Renaissance Capital in 2009, and has supported the bank’s expansion into Central and Eastern Europe. Nasirov previously worked at Concorde Capital, a Kyiv-based brokerage, where he was head of sales and trading. He has also worked as head of CIS products at Cantor Fitzgerald / BGC in London. Nasirov holds a Master of Business Administration in finance and international management from the University of East London and a degree in business law from Kyiv National University of Economics.
ARTEM SHYRKOZHUKHOV joined Avellum Partners, a Kyiv-based law firm, as an associate. Shyrkozhukhov specializes in banking and finance, mergers and acquisitions, and corporate and competition law. Before joining Avellum Partners, Shyrkozhukhov worked in the Kyiv offices of law firms B. C. Toms & Co and Beiten Burkhardt. His professional experience also includes working at the House of Commons of the Canadian Parliament. Shyrkozhukhov graduated from the Institute of International Relations at Kyiv International University. He then obtained a master’s degree from the University of Oxford.
IVAN TROFIMENKO was appointed junior partner at Law Offices of OMP, a Kyiv-based law firm. Trofimenko will lead the real estate and construction practice of the company and continue his World Trade Organization law practice. Trofimenko joined Law Offices of OMP in October 2010 as a counselor. Prior to this he was a lead attorney for real estate at the Kyiv and Moscow offices of Magisters, a Kyiv-headquartered law with a strong presence across the CIS. Trofimenko studied law at the Kyiv Institute for International Relations and then graduated from Pantheon-Assas University in Paris.
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Business 7
March 4, 2011 Advertisement
#64*/&44"%7*4&3 What is the relevance of tax and accounting audit today? Will the relevance of audit services increase in such conditions of administration system of taxation that were defined by the long-anticipated, single and systematized legal act, namely the Tax Code of Ukraine (no doubt it will affect on efficient lives of entrepreneurs and their accountants)? What should entrepreneurs focus on and how to prevent possible violations of tax legislation? In an interview, Katherine Yegorova, the senior lawyer in Amparo Consulting Group, highlights the main aspects of the influence of the tax reform on audit services and Ukrainian business.
KATHERINE YEGOROVA senior lawyer
Do you think the administration system of taxation has become more restricted or more regulated according to provisions of the Tax Code of Ukraine?
Ukrainian billionaire Dmytro Firtash has acquired Cherkassy Azot fertilizer plant, reportedly for $800 million. Firtash has spent billions of dollars on similar acquisitions of fertilizer and chemical plants, giving him control of an 2.44 percent of the world's nitrogen fertilizer production capacity. Some raise monopoly concerns, but Firtash has said that uniting domestic fertilizer production will give the nation competitive export advantages. (Ukrinform)
Monopoly concerns arise as Firtash goes on spending spree Æ6 and Boyko. Khoroshkovsky and Firtash have also had joint business interests in the Inter TV group, which owns the nation’s most popular television channel. Firtash in December said he would leave the gas trading business to concentrate on consolidating his chemical production empire. According to Group DF spokesman Yevhen Smaglyuk, the aggregate capacity of nitrogen fertilizer production controlled by Firtash today is 2.44 percent of world capacity. “The share of Ukrainian enterprises alone account for 2.28 percent of world capacity,” Smaglyuk said, adding that he did not know how much Firtash actually paid for Cherkassy plant. Critics say his recent billion-dollar spending spree raises conflict of interest and anti-monopoly issues, while economists and industry analysts took note of the emergence of yet another monopoly in Ukraine’s oligarch-dominated economy. But some speculate that consolidating the country’s ailing chemical businesses, long inefficient and intensively dependent on increasingly expensive Russian gas imports, could actually help revive the business, especially if Firtash is able to secure gas prices at competitive levels. Tamara Levchenko, senior analyst with Dragon Capital specializing in agricultural and chemical sectors, said even without the Cherkassy and Odessa plants, Ostchem controlled more than half of the country’s fertilizer domestic production capacity. “Future consolidation makes economic sense only if [Firtash’s] group secures a direct supply of natural gas to its nitrogen fertilizer plants, for example, by signing direct agreements with Russian gas suppliers.” Levchenko said. “It could create a company that could prospectively go public on a stock exchange, promising additional benefits for shareholders in the long term perspective.” Firtash’s Ostchem currently incorporates nitrogen fertilizer producers Nitrofert (Estonia) and Tajik Azot
Æ Targets are energyintensive industries, such as fertilizer (Tajikistan), according to the Group DF website, which does not mention his reported interests in Ukraine’s Rivneazot and other plants. Nitrogen fertilizer manufacturing is energy-intensive and relies heavily on natural gas, something that Firtash and his companies appear to have plenty of since the Stockholm arbitration ruling in June. Some analysts wonder how interesting the chemical businesses will be for Firtash after his large stockpile of gas runs out; Ukrainian business daily Kommersant speculated that Firtash could end up reselling the chemical assets to Russian companies, or partner with them in a bid to land lower gas prices from Russia. Analysts predict prices on chemicals, namely fertilizers, could surge in the future due to global food shortages. Levchenko said the price for fertilizers has increased 48 percent in the last year and is likely to continue rising. At current prices, she estimated Ukraine would produce more than $2.7 billion worth of nitrogen fertilizers (ammonia, ammonia nitrate and carbamides) in 2011. During a recent public appearance in Kharkiv on Feb. 4, Firtash said uniting domestic fertilizer producers under his umbrella will give domestic producers a national competitive advantage on export markets. He said the acquisition of Odessa Portside Plant, the terminus of the 1,396-kilometer long
Tolyattii-Odessa ammonia pipeline, would increase his group’s leverage. “This is not something any plant acting individually can do,” he said. “Everything depends on what group can acquire the most number of [nitrogen fertilizer production] plants. If our group succeeds, then we will sit down with government and hold talks. To put it in perspective, the total production capacity of all Ukrainian nitrogen fertilizer plants accounts for 15 percent of total [world] production. So we are more focused on exports. Our main business is to export [fertilizer],” Firtash said, noting that the recent hike in oil prices has resulted in increased gas prices and will lead to higher fertilizer prices. Whether Firtash will be able to enhance the competitiveness of the plants remains an open question for Ildar Gazizullin, an expert at Kyivbased International Centre for Policy Studies. “It is bad news that Ukraine’s antimonopoly committee has been unable – or unwilling – to block Firtash’s plans to expand his fertilizer empire. On the other hand, it’s only natural that Russian business groups will now seek to increase control over the sector with new gas supply arrangements,” Gazizullin said. Government officials may be forced to intervene if higher prices for gas and fertilizers contribute to inflation in other sectors of the economy, he said. Referring to the close relationship between Ukraine’s leadership and its oligarch backers, Paskhaver said: “The new authorities don’t represent the big capital, as was the case under [ex-President Leonid] Kuchma and former President Viktor Yushchenko. They now personify big capital, and their interests are in conflict with those of the state. It is obvious that Ukraine’s Anti-Monopoly Committee is not up to the task of regulating monopolies, the creation of which is now being facilitated by top government officials.” Kyiv Post staff writer Peter Byrne can be reached at byrne@kyivpost.com
Any entrepreneur, an accountant or an auditor will have only one possible answer to this question – “the control system of taxation has become more severe.” But in my opinion, as a lawyer, the whole system has become more regulated, but it does not mean that it has become more loyal for entrepreneurs. Nowadays the tax authority has to work in accordance with the provisions declared by the current legal framework. Without doubt, the system of control of taxation has become more restricted, but it has clear limits determined by the legal act and some official interpretations of The State Tax Administration of Ukraine, that simplify the work of lawyers. All entrepreneurs will agree that, first of all, audit – is a way of minimization of fines that could be a result of tax audits. The audit services will always be relevant, if the company has the financial possibility. Did the new legal framework change this situation? Will increase the demand for audit services? And why it will be more important for entrepreneurs than ever before? There is a certain sector of the audit services market that might extend due to new legislation. The reason for its conducting stays the same - minimization of costs that could be spend on paying fines assessed by tax authorities. However, the number of enterprises that need it will increase, because the fines for self-correction are smaller than those that will be counted by tax authorities on the inspection results. Moreover, the system of sanctions defined by current legislation declares that every subsequent violation leading for increased fines. It is not a secret that the administration system of taxation, as well as the requirements of accounting and tax accounting, has changed. As an example of such innovation, entrepreneurs (individuals) cannot be taxpayers of VAT, but the problem is that the expenditure for their services can not be consider as the gross expenditure of the company. There are lots of such examples. The system was changed and not adjusted, so entrepreneurs have to apply directly to the tax authorities for consultations or official explanations or to auditors in order to avoid violations. How often should the company turn to audit services in new conditions of administration system of taxation? The auditors' recommendation has not changed, once a year it is desirable to conduct a full audit on an enterprise, the result of which will be the auditor’s report with conclusions and recommendations. But taking into account that the system is totally new and all the companies only try to adapt to the new requirements of the legislation, violations are unavoidable for all. Especially it is related to enterprises that have foreign-economic activities, accounting on a cash basis, budgetary compensation and fixed assets balance (accrual of depreciation). Of course, the government predicted this situation and gave the term until June, 2011 (paragraph 7 of subsection 10, section XX of the Tax Code of Ukraine) during which a fine for all violations of tax legislation will be 1.00 UAH. However, no one mentioned that in case of paying an assessed fine by the tax authority to the amount of 1.00 UAH - the following assess of sanctions will be for a subsequent violation (by the increased rate in accordance with the provisions of Chapter 11 of the Tax Code of Ukraine). So according to auditors’ opinions, an audit of tax accounting and accounting is needed at the end of the first half of the year 2011, which were maintained by the enterprise according to the new tax legislation. Can an audit company guarantee that its report will absolutely protect an enterprise from the sanctions assessed by tax authorities? Taking into account the provisions of the new legislation and past practice of tax authorities, it is impossible to guaranty that the result of tax inspection will be a reference, not an act. However, it is possible to ensure that the act will include minimal violations, for which the legislation provides minimal sanctions. It will minimize expenditures for legal services that may be needed on the process of appealing against the act of tax authorities, as well as the exclusion of violations that can lead to initiation of a criminal case and later to the criminal responsibility.
AMPARO CONSULTING GROUP 15 Saksahanskoho str., #10, Kyiv 01033, Ukraine tel./fax +380 44 289 42 42, 289 38 88 amparo@amparo.ua www.amparo.ua
8 Business Focus
www.kyivpost.com
March 4, 2011
Special news coverage ahead on the following topics in Business Focus: March 25 Investment Opportunities
April 8 Legal Services
April 22 Real Estate
May 20. Mergers & Acquisitions
June 10. Agribusiness & Food
Young auditors pay dues in entry-level positions BY K AT E RY N A PA N OVA PANOVA@KYIVPOST.COM
The Kyiv office of Ernst & Young, an international audit and consulting company, is filled with lots of young employees with their eyes fixed on their monitors. They seem annoyed by distractions from their work. The emotion is understandable. Yesterday’s students worked hard to get one of these coveted spots. And now they are working hard to stay there, racking up overtime and working on weekends. The work and studying never seem to end, with some preparing for their next Association of Chartered Certified Accountants exam. And all this for an average of Hr 6,000 a month! But the long-term career prospects are promising. Major international accounting and audit firms – commonly referred to as the Big Four – hire people without experience and train them on job.
Hunt for students According to a survey conducted by Hudson Global Resources last year, three of the Big Four made it into the top five most desirable companies to work for in a survey of young people. Overall, more than 11 percent of students and recent graduates majoring in different fields would choose one
of three Big Four firms – PwC, Ernst & Young and Deloitte – as their first employer. Only KPMG didn’t make the cut. Boris Krasnyansky, managing partner at the Ukraine offices of PwC, has been working for the firm since 1993. Working with young graduates keeps him excited about his work. “Every year we hire from 40 to 80 graduates,” Krasnyansky said. “They pump fresh blood into the firm, and keep the business from going rusty.” Audit firms advertise their career opportunities at employment fairs and recruitment websites. Ernst & Young also started using the popular vkontakte.ru social network. Just two months ago, the firm opened a page dedicated to career opportunities and already attracted 410 members. But most of the efforts are concentrated on direct contact with students studying economics, accounting and finance at Kyiv National Economical University, Kyiv Mohyla Academy and a couple of other national universities. The Big Four keep an eye on students from other cities as well. “The company’s office in Donetsk works with local students. And where we do not have offices – for example, Lviv – we have ambassadors from the student organization AIESEC who promote us,” said Maryna Zakharina, head of human resources at Ernst & Young.
10%
Top 5 most desirable companies for graduates The figure shows the percentage of students who named these companies when asked “If you could choose your first employer, which companies would be in the top 5”?
4%
4%
4% 3%
Source: Hudson Global Resources
Big Four companies now have to compete intensely with other international firms. “Lots of companies come and tell people how awesome they are,” Zakharina said. “But now it is not enough for students. They want essence and professional knowledge.” So the Big Four gives lectures on audit, taxes and accounting available for students both at their universities and at the firm’s offices. Graduates are well-informed about the Big Four and
often willing to join. After all, it’s a job with an official salary, social package and insurance, clear career prospects and intensive corporate training. In Ukraine, for a person without work experience, this prospect is a dream come true. Last year, Natalia Butenko, a human resources manager at KPMG audit and consulting firm, saw as many as 100 young people competing for one vacancy in one of their departments.
The good news is that the Big Four firms hire numerous entry-level employees compared to other sectors. Since October, KPMG got 68 new entry-level employees, Ernst & Young hired 60 last year, while PwC hired 65 students just out of universities. To select them, the companies test applicants’ IQ, their general awareness and command of English. “I had to describe a technological process. And it was rather easy. I come from Zaporizhia and went to Zaporizhstal steel mill where some of my relatives work,” recalled Mykhaylo Pryhodko, a 21-year-old student and intern at Ernst & Young. The Big Four companies generally do not demand knowledge of accounting and finance, due to the poor level of university training. “Accounting is not a difficult science. Multiply, divide, add – that is what anyone can do. And the training we are giving allows them to learn all the ABC’s of this science. So we do not even demand education in economics,” said Oleksandr Gavryliuk, director in the audit department at KPMG.
Hard routine One graduate who made it into the Big Four is Olexandra Kuimova, 22, who has worked for KPMG for five months. “It is a good opportunity to start a career. You are given Æ12
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Business Focus 9
March 4, 2011
Business Sense
Editor’s Note: Business Sense is a feature in which experts explain Ukraine’s place in the world economy and provide insight into doing business in the country. To contribute, contact chief editor Brian Bonner at bonner@kyivpost.com
WITH PAVLO BOYKO
Living in era of new tax code: What to expect, what to do The majority of Ukrainians have suddenly become tax gurus. The situation reminds me of the summer of 2006, when the Ukrainian team qualified for the quarter-finals of the World Cup.Suddenly, every second babushka knew football terminology and each national team player’s biography by heart. Today, two months after the tax code stepped into our lives, the situation is pretty much the same. The tax code is everywhere: on the news, vividly debated in professional and household circles, sometimes even at pubs and parties. Quite expectedly, most of the discussions are about a few topics frequently covered by the media – such as simplified taxation system, impact on private entrepreneurs and others. Overall, it’s a hot topic right now. But what can a professional accountant say about it?
Not a fast read Everyone recalls the clingy ads for miracle weight-loss pills. No exhausting physical exercises, no restrictive diets – just a one-time investment with immediate results. Many of the trainings for accountants available on the market today are comparable, granting exemption to accountants from reading the entire voluminous document. I don’t believe in those weight-loss pills and I believe even less that a conference or a training session can replace the tedious work with the original legislative act. The tax code is a sizeable document – up to 450 pages. Still, this is the single source of the rules of the game which needs to be assimilated very quickly. As always, timing was against the accountants. Value-added tax norms became effective on Jan. 1, 2011. Yearend closing takes quite a chunk of time in January and February. Surprisingly, the majority of the accountants I know
have achieved a somewhat heroic deed and mastered the topic quite swiftly.
Uncertainty Created to provide clear and straightforward guidance to accountants filling tax returns, the tax code raised even more questions since its adoption. This is reasonable when the tone of the tax opinions from the most reputable tax advisers is mild and full of safeguarding phrases like “provided the lack of court practice,” etc. On the other hand, it is regrettable that the lower level tax bodies treat the tax code as they wish and do say it out loud: “Unless the higher tax body issues a formal clarification on this, you’re mine.” This happened to one of our clients. Knowing that the accounting is outsourced, the tax office has verbally rejected the tax return signed twice by the director. This practice works with the rest of our clients and
In case you missed them, read the last six Business Sense columns by experts online at kyivpost.com Feb. 25 with Yuri Delikatny, head of tax at the Kyiv office of Noerr, a German law firm: “New tax code opens dangerous doors; fines could be very high”
Feb. 18 with Olga Pikulska, public relations manager at Paritet law firm: “Facebook, Twitter can help enhance brand, productivity”
Feb. 18 with Oleg Chayka, director in the tax and legal department of the Ukrainian office of KPMG: “Officials’ failure on VAT refund fuels corruption, discourages investment”
Feb. 11 with Timothy Ash, global head of emerging markets research at the Royal Bank of Scotland in London: “Ukraine needs to work harder for slice of investment”
Feb. 4 with Oleksandr Lozovyi, analyst at Kyivbased investment bank Phoenix Capital: “Economy in 2011: Hopeful prospects to brighten outlook”
Jan. 28 with Oleksiy Chernyavskiy, director of Energobusiness, a Kyiv-based consultancy: “Subsidized oil imports harm Ukraine”
also has legal arguments within the code itself. However, the best fishing is within muddy waters.
The PMI The Project Management Institute (PMI) is an international body, uniting experts in project management. I guess they have cried, no, really, they had a collective cry watching the tax code’s life cycle. There were so many unrelated bodies, both from the power (Ministry of Finance, Tax Authority, parliament committee etc.) and the business environments (e.g. Ukrainian Auditors’ Body, European Business Association, American Chamber of Commerce, etc.); hundreds of committees, roundtables, work forces, public hearings. Over 5,400 proposed adjustments were made to the first draft . Thousands of hours were spent by leading tax experts representing some of the largest auditing and law firms. There is a concept in project management – the so-called Iron Triangle: Budget, Scope and Timing. Those are the key constraints of a project. Changes to one of these three key constraints will most likely affect the others. As we can see, the timing (having the new tax code in 2011 already) prevailed this time. While driving last night, I heard on the radio that there was an intention to change the tax code and a working group had been established, comprising the Ministry of Finance and parliament committee representatives. At the same time, it is also necessary for the accountants to master the Iron Triangle paradigm. Due to various reasons, accountants in Ukraine often combine the responsibilities of a financial director, chief investment officer and/or a project manager, being in charge of serious projects. It might be setting up a new tax structure, accounting software or enterprise resource
planning system implementation, etc. All the accountants have to do now is to consider the new tax code as a project. Consequently, the Iron Triangle should be properly and reasonably presented to the management. “Dear boss” – would be a clear cut message from a good accountant – “timing is fixed and very scarce here, scope really doesn’t depend on us, let’s act on the budget side. Suggest an extra interim position for 4-5 month to cope with this.” Would you listen to this type of argument in his boss’ shoes? Provided the support from management exists, proper preparation might be done. For example, the new rules for corporate profits tax are established by the tax code starting April 1. In practice, this means that the first return prepared by new rules should be submitted at the latest in early August. However, a proactive and reasonable approach would be to draft the “pilot” return for the first quarter now – just for internal purposes, testing the current operations and their tax treatment under the new tax rules. This would allow some time for operations to react or, if necessary, get consultations from the tax authorities on unclear provisions of the law. Most accountants will not do this exercise, for sure. Those pushy and lucky ones, having secured management’s support, may really do a great job for their companies. Pavlo Boyko is managing director of TMF Ukraine and also member of the Association of Chartered Certified Accountants (http://www.accaglobal. com/). ACCA is the global body for professional accountants and offers business-relevant qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. Founded in 1904, ACCA supports 140,000 members and 404,000 students in 170 countries.
10 Business Focus
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March 4, 2011
Tax adviser: There is no social contract between state and citizens in Ukraine Æ1 with tax authorities and customs by moving most of the income earned to the offshore jurisdictions with “no taxes and no reports.” Cherniavskiy has no warm sentiments about the new Ukrainian tax system. He said that the Ukrainian government simply does not provide enough public services – such as transparent judiciary, quality healthcare, and good education – to justify the high tax rates and fiscal pressures that it imposes on its businesses and citizens. In his Kyiv Post interview, Cherniavskiy, son-in-law of Ukraine’s fourth richest man, Gennady Bogolubov, co-partner in the socalled Privat Group, talked about the challenges faced by Ukrainian businesses after the new tax code came into force. He explained the chronic unwillingness of businesses to pay taxes in Ukraine and commented on the recent controversial events involving him. Last year, the Security Service of Ukraine [SBU] and prosecutor general opened a criminal case on suspicion that Cherniavskiy gave out consulting contracts worth nearly Hr 428,000 ($53,500) for already completed construction work and services while he oversaw Olympic Stadium. Charges against him were allegedly dropped several months later. Prior to that, the parliamentary commission investigating reconstruction of the Olympic stadium found that during currency exchange operations under Cherniavskiy’s management, the state incurred losses totaling Hr 4.3 million ($543,000). It also questioned two other contracts for consulting services worth a total of Hr 12 million ($1.5 million). Kyiv Post: How is Ukraine’s business climate with the new tax code's introduction?
Dmitry Cherniavskiy: It will be difficult to see anything positive in the way business reacts to the new tax code. The main thing about it is that it moves the country back in its development. Look at how tax systems have evolved around the world. If there is an increase in corporate tax pressure, then personal taxes are getting more liberal. If personal taxes are getting higher, then corporate taxes should go down. The second way is considered more progressive, as business should develop freely, expand its capital to third countries and grow. And it’s clear and logical that whatever owners and stockholders of a business earn, it should be subject to a high personal tax to result in the cleanest money possible. In Ukraine we have a different situation. The authorities try to collect taxes wherever they can, basically on the basis of “tax whoever you can catch.” This is not to mention the political regime we have. We all understand that there are “untouchable” people and there are people who are even more “untouchable.” And in such a de facto absence of clear rules, it’s natural that there are people who don’t pay taxes at all, or pay fewer taxes, or pay them according to some other criteria. In the whole world, small business pays no, or very little taxes, [and only when] they have earned something. It simply has to earn something first! And the state should provide the benefits to justify and encourage paying taxes, such as political stability and social protection. A businessman also has to see where the taxes go to, for example, good roads, well-developed communication and transportation networks, schools, hospitals. It doesn’t exist in Ukraine. In Ukraine, there is no such social
contract between the state and its citizens. KP: But fiscal pressure from tax authorities could be explained by the budget deficit, which, in part, results from the widespread use of offshore and tax-minimization schemes by big business? DC: Look, it’s not Ukrainians who invented offshores. It’s not Ukrainians who established the offshore jurisdictions, and it’s not that Ukrainians alone are using these schemes, some of which might be more than 100 years old. What Ukraine did was to come up with a tax system that hasn’t really been reformed for the last 20 years, and its political system rather reminds of feudalism. There are some attributes of democracy, but it has nothing to do with real democracy. Do we have independent courts in Ukraine? No. They weren’t independent during the previous government either, but today there is not even an illusion of moving towards establishing independent judiciary. People often call offshore countries “banana republics.” But most of these so-called banana republics have the judiciary system established by the British, the Dutch, or the Germans, who used to have a protectorate over these countries. So, funny as it is, the company registry of British Virgin Islands consists of more than a million companies. And one of the reasons for that is that local courts provide business owners the same legal protection in case of problems as they would in the United States, Canada or Germany. You cannot buy a decision there, like in Ukrainian courts. Therefore, is it surprising that big Ukrainian businesses you have asked about have offshore subsidiaries in such “banana republics”? They do pro-
Dmitry Cherniavskiy, partner in the London-based firm Tax Consulting U.K., is the son-in-law of Gennady Bogolubov, the nation’s fourth-richest citizen.
vide much better protection for business than in your home country. KP: What is the right tax rate? DC: There is a number written in the Torah and then re-written in the Bible and Koran: 10 percent. This is a psychologically comfortable number, no matter what your faith is. But since there is no one else between you and God, this 10 percent should be out of what you really earn. Moreover, 10 percent of personal income tax after all the corporate taxes have been paid is not such a small amount. But all these 15, 20, 30, 40 percent profit taxes are so abstract. The verge between tax planning and tax evasion is really thin, especially in the absence of clear and comprehensive laws. So, look what happens in Ukraine. The government cannot put pressure on large corporations. In most cases, it’s because they don’t want to do this. So, they catch whoever is not able to defend themselves – small and medium business – and start milking them like cows. But you cannot milk animals eternally. Eventually, they either start butting, or escape to better conditions. KP: Does it mean that small
businesses are increasingly seeking ways to optimize taxes? DC: There are two reasons why people are seeking tax advice [regardless of the size of business]. First, if a company wants to be clear and transparent, have no problems and work with legally established schemes of tax minimization. The second reason is when a bribe that you need to give your tax inspector exceeds what you can afford. KP: What is the most popular question related to the new tax code? DC: Mostly we are asked to explain its changes. There are lots of exportimport related questions. So, they come to ask about the best ways of working with their foreign partners. KP: But if a company is undergoing an audit, how does the widespread use of minimization schemes affect the company’s reputation with investors? DC: If a person or a company doesn’t want to pay taxes, they won’t pay, no matter what. Again, this is a decision everyone makes for himself. So, when such a person starts using a min- Æ11
Big decisions follow you around We hav en ew bus ine ss
ide a. H ow do w e
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impl ement it? Audit Tax Advisory Grant Thornton Ukraine LLC | 4a Degtyarivska Str, Kiev 04050, Ukraine T (mobile) +38 (050) 351-30-03 | T (office) +380 (44) 230-47-78(80) | F +380 (44) 230-48-40 E vkazakov@gtukraine.com | W www.gtukraine.com
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Business Focus 11
Cherniavskiy, son-inBusiness law of nation’s fourth- Sense richest citizen: ‘I just wonder ... how much When will nation speak money they will steal’ international language of If you want to be part of the larger world, move freely across borders, meet with people outside of Ukraine and ALEXEI expand your horizon of WITH KREDISOV
Æ10 imization scheme, he just doesn’t care what other people say. All he cares about is to bribe tax inspectors, so that they overlook this. Some decide to go transparent. It could be for IPO [initial public offering] reasons, or to land a loan. In such situations businessmen prefer to have companies in European jurisdictions with very low corporate taxes, such as Switzerland, Austria, the Netherlands, Denmark, U.K., and, in some cases, Cyprus. KP: Let’s change topic and go back to the events of last year, when the prosecutor general and SBU opened a criminal case related to your work at the Olympic Stadium. What happened back then? DC: There was the change of political regime, which triggered a witch hunt. Back in 2008, I got excited about this project and accepted this offer, as I had some experience in the developing business in Russia. It was the biggest construction project in Ukraine’s history and it seemed to me very transparent. Two years of work and you would see beautiful and impressive results. The stadium is now being built by others. I hope it’s built on time and with high quality, so that we host the Euro 2012 [soccer] tournament in Ukraine. KP: What about the report of parliamentary commission which investigated the reconstruction? Have you read it? DC: If you look at the stadium’s budget at the time of this report and now, you will see that it’s about 2.5 times higher. So, when the next government decides to audit the reconstruction done by the officials now in power, there will be a lot of questions to ask. As for the consulting contracts, UEFA [Union of European Football Associations] repeatedly stressed the need for hiring specialized consultants on the project. So, we sent invitations to participate to around 50 companies,
around 11 of them responded. The list of these companies has been approved by the UEFA. Then, British company Strategic Leisure and Finnish Poyry Architects won. The British and Finnish companies have an established reputation worldwide. These are not pocket companies owned by Cherniavskiy, or someone else. They won and UEFA accepted it. The investigation closed the case having dropped all the charges. KP: Have you been detained? DC: Never. On that day [when the newspapers reported about it] I was in Miami with my kids on vacation. Look, I know exactly who was behind [this attack]. I just don’t want to talk about it. I wonder whether they will be successful in building the stadium and how much money will they steal. KP: Did Gennady Bogolubov, your father-in-law, interfere to help you with this criminal case? DC: He has nothing to do with solving this problem, as there was no real problem. There was a fabricated criminal case that took too long to solve, due to political reasons. They needed a scapegoat, someone to blame for increasing the [Olympic stadium] construction budget. KP: It is widely considered that the so-called Privat Group, coowned by Bogolubov, is among the most active users of taxminimization schemes, and that most of its companies are owned by offshore structures. Have you ever given business advice to the group? Or it just happened that you have the same business philosophy? DC: I am sure you can ask him this question directly. My last name is Cherniavskiy and so is my wife’s last name. There are many people in the world who seek my advice. Kyiv Post staff writer Vlad Lavrov can be reached at lavrov@kyivpost.com
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
about this
continuous application of IFRS, if not
accounting, auditing?
If you want to be part of the larger world, move freely across borders, meet with people outside of Ukraine and expand your horizon of options, you will need to speak foreign languages. That means English, primarily, although some would also put French, Spanish, Russian, German or Chinese in that category. The same is true in the world of finance – if you want your business to speak an international language, you will need to “speak” International Financial Reporting Standards (IFRS) or U.S. Generally Accepted Accounting Principles (GAAP). These, no less than English, are means of communication in the global world. International investors read IFRS, investment analysts build their models on IFRS, major international lenders require IFRS to understand their borrowers and so on. Ukraine can lead the way among former Soviet countries in implementing IFRS (only the Baltic states, Georgia and Kazakhstan are notably more advanced in applying IFRS). This is important because countries compete for capital, and those with IFRS will have an edge. Ukraine needs to differentiate itself positively, and this is our chance to do so. Another reform? Ukraine has been contemplating converting to IFRS for a while now. There were various reasons why this conversion could not be done in the past. They varied from a determination to do it our own way by maintaining our own Ukrainian accounting standards, to difficulties in applying IFRS here, to the greater time burden that IFRS would place on Ukrainian accountants to a shortage of accountants qualified to use the standards. I recall the experience of converting to IFRS in the Ukrainian banking sector. There was lots of controversy
Æ Nation can gain edge by adopting financial reporting standards conversion back in the 1990s. Similar concerns circulated and similar discussions took place. Nevertheless, in 1997 the decision was made to move closer to IFRS and, starting in 1998, significant steps forward took place. Although the National Bank of Ukraine does not mandate IFRS, bank reporting is now very close to IFRS (the biggest difference is in the approach to loan provisioning). So, I would call the situation in the Shakespearean style “much ado about nothing.” According to our internal survey, 72 out of the 100 largest companies in Ukraine prepare statements in accordance with IFRS or similar internationally recognized standards. This does not include banks and other financial institutions, where the IFRS penetration rate is even higher. Even more revealing is the analysis of these 72 companies operating under IFRS. Sixteen are state owned, 34 are private Ukrainian companies controlled by local owners and only 22 are foreign companies operating in Ukraine. For the first two categories, the main motive is to attract investors (via debt financing or equity placements, while foreign companies generally prepare group reports. The IFRS penetration in the Ukrainian economic system of public concern is thus quite high. From our experience, we can assume that the level of penetration in smaller and medium companies of public concern is also high. Business of this country is moving in the direction of
de jure than de facto. Of course, on this road the main problem is specialists – and they are critically lacking. This is a separate problem – the lack of qualified people motivated to study IFRS. The role of a management team is to understand the need to attract such professionals. Without awareness of the importance of this aspect of corporate governance – there will not be a full-fledged financial or management reporting. For me it seems to be a key factor in the penetration of high-grade financial reporting standards. Since 2008 the law on joint stock companies has mandated that such companies report according to IFRS. Due to the absence of certain regulatory acts, this requirement has not been enforced. This year, on Feb. 11, the State Committee on Securities and the Stock Exchange registered this requirement. Going forward, therefore, joint stock companies will finally be required to report under IFRS. If this happens and no further delays take place, it will be a big step forward in terms of the transparency of Ukrainian business, and a step that sooner or later Ukraine will need to take in order to be an important international player. When Ukrainian business learns to speak the international language, it will be a well-learned lesson indeed. Alexei Kredisov is managing partner of Ernst & Young in Ukraine
12 Business Focus
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March 4, 2011
Ukraine lacks audit oversight BY O K S A N A FA RY N A FARYNA@KYIVPOST.COM
Ukrainian auditors are not sought by companies operating on capital markets abroad, since oversight of the profession in the nation is not up to European Union standards. With the profession’s reputation low internationally, homegrown firms are effectively shut out from potentially lucrative markets. European authorities have been trying, without success, to get Ukraine to create an independent public system of oversight and quality assurance within the auditing profession. “Ukraine has missed its train to Europe,” said Olena Makejeva, general director of Aksonova & Associates, a local audit company, referring to a European Commission decision that applies to Ukraine and other nations with sub-standard procedures. “These countries did not provide information regarding their audit regulatory and oversight systems,” the European Commission said on Jan.19. “Under these circumstances, it appears
that those countries are not willing to continue towards having their audit regulation recognized as equivalent to the public oversight, quality assurance, investigation and penalty systems” in the European Union. For many of the nation’s 1,500 audit firms, it closes the door to providing audit services to Ukrainian companies who, for instance, plan to launch initial public offerings abroad or work on European capital markets. However, Ukraine’s offices of the “Big Four” audit firms – Deloitte Touche, PwC, Ernst & Young and KPMG – and other big firms have broad recognition and expertise internationally, allowing them to overcome any local deficiencies. Since the EU decided not to extend a transitional period for Ukraine to comply, the reputation of Ukraine’s auditors continues to suffer. “The EU decision will influence the image of Ukrainian auditors even more than their profits,” said Tatyana Bernatovych, president of RSM APiK, a Ukrainian audit firm. Even though the number of Ukrainian companies listed on European stock exchanges is
growing, the proportion of audit work connected with initial public offerings is still insignificant in Ukraine. In Ukraine, the Audit Chamber certifies and controls the operation of auditors, but it does not meet all the European requirements of a public oversight body. Corruption – Ukraine’s old companion – appears to dog the industry. “In Ukraine, there are still audit firms which simply sell out audit reports and nevervisit an enterprise. Such auditors work for many years,” said Bernatovych from RSM APiK. “The Ukrainian Audit Chamber does regulate the audit profession, but its control is not effective enough.” According to European legislation, the system of public oversight shall be governed by non-practitioners who are knowledgeable in the areas relevant to statutory audits. Practitioners can participate on a minority basis. At the moment, the Ukrainian Audit Chamber consists of six auditors who also work in audit firms and 13 other members. The problem remains, however, that 10 of 13 other members are representatives of different state bodies
and very often lack experience in the field of audit. “The most significant problem is to bring to the Audit Chamber nonpractitioners who have deep knowledge of statutory auditing and, in my opinion, international standards of auditing,” said Bernatovych. “Regrettably, representatives of different state regulative bodies, who according to the law, are chamber members at the moment, do not have and cannot have relevant knowledge as soon as most of them gained their experience in the field only after they started working in the Audit Chamber.” Another problem issue within Audit Chamber is financing. According to the EU directive, the funding for the public oversight system shall be secure and free from any undue influence by statutory auditors or audit firms. At the moment, the main financing sources of the chamber are fees for certification, registration and education paid by audit firms. “When oversight body is financed by audit firms, it threatens the independence of this body,” said Alla Savchenko, president of BDO firm
and a former member of the Audit Chamber. “The Audit Chamber would be more independent and effective if it was partially funded from the state budget and other sources independent from the profession.” To create a public oversight body that corresponds to all European requirements, the law on auditing activities should be changed first, said Ivan Nesterenko, current head of the Audit Chamber. There were several attempts to do so, but all were unsuccessful. Meanwhile, the Audit Chamber has created a special committee to control the quality of audit services. Since 2007, the committee has checked 280 audit firms in Ukraine and plans to test up to 100 more firms till the end of 2011. Until an effective system of public oversight for statutory auditors is created, the work of audit firms registered in Ukraine could be questioned and challenged. Moreover, Ukrainian clients will bypass local firms if they are looking for audits that pass muster on European capital markets. Kyiv Post staff writer Oksana Faryna can be reached at faryna@kyivpost.com
Big Four provide training ground Æ8 books, training, you get ACCA qualifications. Every year they review your position and you may be offered better work conditions,” she said. However, working in the Big Four is not a piece of cake. “No doubt people work a lot. More than eight hours [a day]. We know that there is no work-life balance here,” said Ernst & Young’s Zakharina. “I remember working all night long when I was about 27 or 28,” confessed Gavriliuk from KPMG. He recalls that in 2005 and 2006, when market growth was strong, he could not find an empty seat at the office on weekends. That’s tapered off a bit, but long hours persist. Out-of-town business trips are common – welcome to some employees, a hardship to others. “The younger an employee is, the more time he or she spends on business trips,” said Butenko from KPMG.
“Assistant auditors who are working first or second year may spend 70 percent of their time on business trips all over Ukraine and sometimes abroad.” Even more surprising is that, despite such tough working conditions, some employees refuse vacations. At Ernst & Young, some 50 people out of 510 did not take their annual leave. “There are a large number of young guys who like to work and hang around in the office,” said Zakharina from Ernst & Young. “They do not yet have families but still have health.” To counteract workaholics, Gavryliuk now lowers job evaluations of those who don’t take vacation.
Getting out Contrary to popular opinion, auditors do not make a lot of money until they climb the ranks of management. Kyiv interns start at Hr 3,000, rising to Hr 5,500 for entry-level jobs before
hitting Hr 11,000 for supervising auditors – positions that can be achieved after two or three years. Veteran directors can earn more than Hr 48,000 a month. The slow salary growth and long hours take their toll, prompting some to quit within five years. Those workers who tough it out find themselves very marketable. Many get ACCA certification, a good job reference, solid experience and then leave for better jobs. Company finance directors or controllers can command Hr 15,000 to start with. “Young people leaving us to go for industry jobs are part of our business model. Our largest client System Capital Management [owned by Ukraine’s richest citizen, Rinat Akhmetov] hired more than 20 of our employees over, the years. And we are happy to be the industry launching pad,” said Krasnyansky of PWC. Plus the organizational structure is
Mykhaylo Pryhodko
pyramid-shaped. “Hiring 70 graduates, we have lots of people at the bottom. Then 50 of them move up, while the company needs only 5-8 managers.
So it is natural that people have to leave,” explained Zakharina of Ernst & Young. It’s not always happy, however. Alexey Podryadchikov, a former KPMG auditor, started a blog called alexeycuskpmg.livejournal.com. On it, anonymous users discuss salaries and bosses, talk about sex for career promotion and compare their companies to religious sects. Still, on balance, it appears that those with the nerve and work ethic to stay in accounting and consulting have excellent opportunities around the world. The Big Four firms have global mobility programs. Gavryliuk of KPMG spent one and a half years in China and enjoyed the change. “Living abroad, you look at your home country as if you were in space staring on earth,” Gavryliuk said. Kyiv Post staff writer Kateryna Panova can be reached at panova@kyivpost.com
TMF Ukraine LLC Yaroslaviv Val, 23A 2nd floor 01034, Kiev, Ukraine ph. +38 044 428-94-44 e-mail: Ukraine@TMF-Group.com
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Business Focus 13
March 4, 2011
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Listing is arranged in alphabetical order TEL./FAX
TOP EXECUTIVE
OWNERSHIP, UKRAINIAN / FOREIGN (%)
HEADQUARTERS
# OF FULL-TIME EMPLOYEES IN UKRAINE (TOTAL)
# OF FULL-TIME PROFESSIONAL ACCOUNTANTS / AUDITORS IN KYIV
PRICE RATE $, (PER HOUR)
COMPANY SPECIALIZATION
MAJOR CLIENTS
FOREIGN LANGUAGES
ACA Bureau Ltd, (in Ukraine since 2007), www.aca-bureau.com.ua, info@aca-bureau.com.ua, 69 Volodymyrska Str., off.#9, Kyiv 01033, Ukraine (44) 287-53-59 (44) 287-53-59
Elena Peshkova
100/0
Kyiv, Ukraine
11
WND
WND
Accounting,audit, financial reporting (IFRS), tax and legal advisory, corporate finance, business advisory services
Advising Glas Trösch Euroholding AG & Co. KGaA on business acquiring
English
AMPARO Consulting Group, (in Ukraine since 2008), www.amparo.ua, amparo@amparo.ua, 15 Saksahanskoho Str., off.#10, Kyiv 01033, Ukraine (44) 289-42-42 (44) 289-38-88
Aleksandr Zlenko
100/0
Kyiv, Ukraine
16
5/3
WND
Corporate, commercial, tax, financial, criminal law (commercial crimes), audit, representation in courts, bankruptcy
WND
English
Audit Company HLB UKRAINE LLC, (in Ukraine since 1994), www.hlb.com.ua, office@hlb.com.ua, 8 Panasa Myrnogo Str., off.#6, Kyiv 01011, Ukraine (44) 222-60-10 (050) 311-31-79
Valeriy Bondar
100/0
London, UK
93
WND
WND
Audit, transformation (IFRS, GAAP), Due Diligence, tax, consulting, legal, forensic, financial analysis, appraisal
UKRTATNAFTA, Christian Dior, Naturprodukt Vega, Hellenic Bank, Faberlic, BEJO, Grain Alliance, Vianor Club, Colin’s
English, Russian
Audit Company MGI Consulting Ltd, (in Ukraine since 1992), www.consulting.ua, consulting@consulting.ua, 11/11 Gusovskogo Str., off.#1, Kyiv 01011, Ukraine (44) 569-1562 (44) 569-1563
Olga Zinko
100/0
Kyiv, Ukraine
90
WND
From 50
Audit, tax and legal services, accounting, transformation (IFRS, GAAP), due diligence, forensic, corporate finance
Louis Vuitton, Subaru, Estee Lauder, Ulker Group, Nokian Tyres, Alcon, Ukrposhta, Ukrpatent, Kvazar, Aeroflot, Medicom
English, Russian
Provided on the web-site
English
Audit Company OLGA Audit, (in Ukraine since 1997), www.audit.com.ua, olga@audit.com.ua, 39-41 Khoryva Str., Kyiv 04071, Ukraine (44) 545-65-35 (44) 545-67-77 (44) 545-65-25
Artur Surmenko
100/0
Kyiv, Ukraine
26
13
35-100
Audit, accounting, tax, M&A, due diligence, business planning and financial analysis, outsourcing
Audit&Consulting Group “EXPERT”, LLC, (in Ukraine since 2003), www.expert-company.com, audit@expert-company.com, 8-B Kudryavska Str., off. #2, Kyiv 04053, Ukraine (44) 272-53-21 (44) 272-38-21 (44) 272-38-41
Dmytro Oleksiyenko
100/0
London, UK Kyiv, Ukraine
31
8
WND
Audit, M&A, taxation, accounting, consulting, legal, corporate finance, valuation
TNK-BP, Lukoil, Energetic Company Of Ukraine, XXI Century, Azot
English
An independent member of Morison International
Audit Firm Kyiv Audit Group, (in Ukraine since 1996), www.kagaudit.com, info@kagaudit.com, 7 Holosiivs’ka Str., building 3, Kyiv 03039, Ukraine (44) 585-96-98
Iryna Igumnova
WND
Kyiv, Ukraine Praxity - London, UK
50
6/34
WND
Audit, tax and law advice, accounting outsourcing, restructuring, transactions, M&A, due diligence
WND
English
Raiffaisen Bank Aval, OTP Bank, Lactalis-Ukraine, ORANTA
English, German
An Associate Firm of Praxity, AISBL
Audit Firm “RSM APiK”, (in Ukraine since 1992), www.rsmapik.com.ua, office@rsmapik.com.ua, 37/19 Donetska Str., Kyiv 03151, Ukraine (44) 501-59-34
Tetyana Bernatovych
100/0
Kyiv, Ukraine
60
14
WND
Audit, consulting, accounting accompanying services, internal audit, corporate finance, information technologies (IT)
Audit Group "Guarantee-Audit", (in Ukraine since 2003), www.auditgroup.com.ua, anna.morgalenko@bestaudit.com.ua, 8/14 Velyka Zhitomirskaya Str., off.#7, Kyiv 01034, Ukraine (44) 230-83-89 (44) 230-83-90
Aleksey Mechinskiy
100/0
Kyiv, Ukraine
100
10/40
WND
A member of GuaranteeGroup
Audit, IFRS/GAAP, taxation, outsourcing, business advisory, legal support, HR training
Metro, TM “Beeline”, CMA CGM, Argo, Bionorica, Samsung, London & Regional Properties
English
WND
English, German, French
WND
English, German
Baker Tilly Ukraine, (in Ukraine since 1999), www.bakertillyukraine.com, info@bakertillyukraine.com, 28 Fizkultury Str., Kyiv 03680, Ukraine (44) 284-18-65 (44) 284-18-66
Alexander Pochkun
100/0
London, UK
201
21/117
WND
Audit, corporate finance, transaction services, independent valuation, outsourcing, business advisory services
BDO LLC, (in Ukraine since 1993), www.bdo.com.ua, bdo@bdo.kiev.ua, 201-203 Kharkivske Road, 10-th floor, Kyiv 02121, Ukraine (44) 393-26-88 (44) 393-26-91
Managing Partner/ Director BDO Sergiy A. Balchenko
100/0
Brussels, Belgium
WND
WND
WND
Audit, tax and legal advisory, corporate finance, valuation & business advisory services
EBS (Emergex Business Solutions), (in Ukraine since 1998), www.ebskiev.com, info@ebskiev.com, 13A Universytetska Str., Kyiv 03110, Ukraine (44) 249-79-05 (44) 249-79-06
Helen Volska, Managing Partner and Director
0/100
Kyiv, Ukraine
85
WND
45
Accounting/payroll outsourcing, preparation of tax, financial, managerial, IFRS/GAAP reports, tax consulting, audit
WND
English, German, French, Spanish, Italian
Business Focus is the Kyiv Post’s spotlight on companies, industries and services in Ukraine. The stories on the news pages of Business Focus are written by Kyiv Post editorial staff members, but the lists of companies are paid advertisements. Listing is arranged in alphabetical order. For more information about publishing your company's information in our list, please contact the advertising department at advertising@kyivpost.com. Key to abbreviations: WND – would not disclose.
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March 4, 2011
ACCOUNTING AND AUDITING FIRMS
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Listing is arranged in alphabetical order TEL./FAX
OWNERSHIP, UKRAINIAN / FOREIGN (%)
TOP EXECUTIVE
HEADQUARTERS
# OF FULL-TIME EMPLOYEES IN UKRAINE (TOTAL)
# OF FULL-TIME PROFESSIONAL ACCOUNTANTS / AUDITORS IN KYIV
PRICE RATE $, (PER HOUR)
COMPANY SPECIALIZATION
MAJOR CLIENTS
FOREIGN LANGUAGES
WND
English
WND
English
Ernst & Young, (in Ukraine since 1991), www.ey.com/ua, kyiv@ua.ey.com, 19A Khreschatyk Str., Kyiv 01001, Ukraine Kyiv: (44) 490-30-00 (44) 490-30-30 Donetsk: (62) 340-47-70
Alexei Kredisov, Country Managing Partner
WND
London, UK
520
WND/210
WND
Audit, accounting outsourcing, tax and law, business advisory, business risks, transactions, M&A, valuation
Grant Thornton Ukraine, (in Ukraine since 1991), www.gti.org, www.gtukraine.com, 4A Degtyarivska Str., Kyiv 04050, Ukraine (44) 230-47-78 (44) 230-47-80 (44) 230-48-40
Vitaliy Kazakov
100/0
London, UK
65
45
WND
Audit and assurance services, reorganization and restructuring, tax consulting, due diligence, M&A, accounting services
Intercomp Global Services, (in Ukraine since 2007), www.intercomp.com.ua, ukraine@intercompglobal.com, 119A Saksahanskoho Str., Kyiv 01032, Ukraine (44) 207-43-43 (44) 207-43-44
Natalia Pasko
0/100
Budapest, Hungary
42
30
From 28
Complex business process outsourcing solutions, payroll, accounting outsourcing, tax planning and consulting, HR administration, outstaffing
WND
English
WND
Finish, German, English, Swedish
WND
English, German, Polish, Dutch, Slovenian, Afrikaans
WND
English
WND
English, French, German
Orange Telecom, Koopman International, GeDeBruyn Trans Ukraine
English, Swedish
Provided on the web-site
English
AZST, BSL, ETG, FinArt, IKS-Consulting, Interdean, Kema, MSA Safety, Pristav, Sandvik
English
WND
English, German, Russian
WND
English, German, Italian, Romanian
KONSU KYIV LLC, (in Ukraine since 2008 ), www.konsu.com, kiev@konsu.com, 9/2 Chervonoarmiyska Str., off.#31, Kyiv 01004, Ukraine (44) 499-13-55 (44) 499-13-54
CEO of Konsu Group Manfred Janoschka, Deputy Director Oksana Kochmarska
0/100
Finland, Russia, Germany
11
WND
WND
Konsu is member of Accountor Group www.accountorgroup.com
Business start-up services, financial management outsourcing/ accounting services, HR & Payroll solutions, legal advisory
KPMG-Ukraine Ltd., (in Ukraine since 1992), www.kpmg.ua, info@kpmg.ua, 11 Mykhalyivska Str., Kyiv 01001, Ukraine (44) 490-55-07 (44) 490-55-08
Floris Schuring, Managing Partner, Craig Richardson, Partner, Tax and Legal, Ilya Kotlov, Partner, Risks & Compliance
WND
KPMG is a global network presented in 146 countries worldwide
300
WND
WND
Audit, accounting outsourcing, accounting advisory, IT advisory, social/sustainability report assurance
Kreston GCG, (in Ukraine since 2001), www.kreston.com.ua, office@kreston.com.ua, 10 Grushevskogo Str., Kyiv 01001, Ukraine Kyiv: (44) 498-29-12 (44) 498-29-13 Donetsk: (62) 334-99-37 (62) 334-99-38
Sergey Atamas, Managing Partner
WND
Chelmsford,UK
WND
WND
WND
Audit, IFRS accounting, tax services, due diligence, valuation, transactions, M&A, IPO, PP, business advisory
Mazars Ukraine, www.mazars.ua, info@mazars.ua, 8 Illynska Str., Business center Illynsky, entry 1, 6th floor, Kyiv 04070, Ukraine (044) 390-71-07 (044) 390-71-06
Gregoire Dattee
WND
Paris, France
20
6/12
WND
Audit, accounting, outsourcing, tax advisory services, transaction services
Monvair, (in Ukraine since 2008), www.monvair.com, info@monvair.com, 42/44 Shovkovychna Str., Kyiv 01601, Ukraine Kyiv: (44) 490-12-44 London: +44 (0) 207-903-51-87
Roman Chukhvitsky, Managing Partner
WND
Kyiv, Ukraine
WND
WND
From 50 Euros per hour
Accounting outsource, tax consulting&reporting, corporate tax planning, payroll, VAT, IFRS, GAAP, online accounting, compliance review
OL.Consulting, (in Ukraine since 1997), www.olconsulting.com.ua, office@olconsulting.com.ua, 39-41 Khoryva Str., Kyiv 04071, Ukraine (44) 545-67-77 (44) 545-65-25
Aleksey Gachkovskiy
100/0
Kyiv, Ukraine
47
13
35-400
Business start-up, audit, accounting, taxation, legal services, M&A, project management
Paudis, (in Ukraine since 2009), www.paudis.com.ua, info@paudis.com.ua, 1/2 Lunacharskogo Str., off.#355, Kyiv 02002, Ukraine (44) 491-94-63 (44) 492-58-68
Oleg Pas’
100/0
Kyiv, Ukraine
4
3/1
WND
Accounting and payroll services, audit, tax advisory, corporate finance, business advisory services
ROEDL & PARTNER, (in Ukraine since 2003), www.roedl.pro, info_ua@roedl.pro, 40 Hlybochytska Str., Kyiv 04050, Ukraine (44) 586-23-03 (44) 586-23-04
Klaus Kessler
0/100
Nuremberg, Germany
WND
WND
WND
Audit, tax, legal advice, due-diligence, business advisory, transformation to HGB, IFRS, accounting outsourcing
TMF Ukraine, (in Ukraine since 2006), www.tmf-group.com, Ukraine@tmf-group.com, 23A Yaroslaviv Val Str., Kyiv 01034, Ukraine (44) 428-94-44 (44) 428-94-49
Pavlo Boyko, General Director
WND
Amsterdam, the Netherlands
36
28/0
WND
Bookkeeping and reporting services, human resource and payroll services, corporate secretarial services
UKRAINE CONSULTING, (in Ukraine since 2006), www.ukraine-consulting.eu, info@ukraine-consulting.eu, 42-44 Shovkovychna Str., Horizon Towers, Kyiv 01061, Ukraine (44) 490-55-28 (44) 490-55-29
Sven Henniger
0/100
Hamburg, Germany
20
12/0
WND
Accounting outsourcing, tax consulting, company registration, legal address, office sublease, recruiting
WND
English, German
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www.kyivpost.com
March 4, 2011
News/Opinion 15
Nation’s four presidents The four presidents of Ukraine – from left, Viktor Yushchenko (2005-2010), Viktor Yanukovych (2010-present), Leonid Kuchma (1994-2005) and Leonid Kravchuk (1991-1994) – meet Feb. 25 at the presidential administration. The occasion was Yanukovych’s first anniversary as president. Below is Mykhailo Hrushevskyi, elected as first president the short-lived Ukrainian People’s Republic in 1918. (Mykhailo Markiv)
Chopivsky: Russia negates Ukraine’s historical identity Æ5 umbilical cord to Russia; some in financial ways and some morally.” Last year, Tabachnyk and his Russian counterpart, Andrei Fursenko, announced their intention to create a Ukrainian-Russian working group for the purpose of creating a joint textbook guide for history teachers in the two countries. Tabachnyk also cancelled the 12th year of secondary school, bringing it into line with Russia’s 11-year system and making it more difficult, according to critics, for Ukrainian students to qualify to study at Western institutions, which typically are premised on 12 grades of schooling. “That is something Russia wants from [Ukraine],” says Kipiani. “They want to build a common informational, cultural, and educational space.” A recent controversial Russian teaching manual claims that Stalin acted “entirely rationally” in executing and imprisoning millions of people in the gulag. Another manual calls Stalin an “effective manager.” Russian officials support Ukraine’s revision of history textbooks. Lawmaker Sergei Markov of the ruling United Russia party said it’s “an important task to immediately and radically change history textbooks of modern Ukraine” because, in his view, “they are falsified.” Last year, the Russian ambassador to Ukraine, Mikhail Zurabov, famously announced that Russians and Ukrainians are a single nation: “I am sure that we are not just brotherly people -- we are a single nation. With some nuances, peculiarities, but a single nation.” Former Ukrainian Foreign Minister Borys Tarasiuk said recently in an interview: “We do not impose on Russia how to interpret its own history. Why do Russians want to make us forget our own history and our heroes? Ukrainians must know their history and
live accordingly, instead of living by the stereotypes spun by tsarist and Soviet ideologists.”
Clampdown In Russia While Russia is advocating certain changes in Ukraine’s educational sphere, it is clamping down on Ukrainian institutions on its own turf. Last month, Moscow disbanded an important Ukrainian cultural organization, the Federation of National Cultural Autonomy of Ukrainians of Russia. Russian Interior Ministry troops from the “anti-extremism” section have raided Moscow’s Library of Ukrainian Literature three times since the end of December, seizing computer hard drives and servers as well as more than 50 books suspected to be “extremist literature.” Library director Natalia Sharina was beaten and reportedly suffered a concussion. The Ukrainian and Russian education ministers last year signed an accord declaring 2011 the Year of Ukrainian Education in the Russian Federation and 2012 the Year of Russian Education in Ukraine. While history textbooks are getting a makeover in Ukraine, higher-education institutions are coming under pressure from the government. The ministry’s proposed draft law on higher education aims to unify the life of all universities, say observers, demanding the exact same statutes and entry requirements for all universities and prohibiting students the freedom to select their own courses in their chosen programs of study, a common Western liberal arts tradition. It also restricts the use of English, making it impossible, say critics, for higher education institutions to be competitive in the global arena. “The proposed new law on higher education is a return to Soviet times,” said Serhiy Kvit, president of the respected Kyiv Mohyla Academy, Ukraine’s oldest university and the
only higher education institution in Ukraine officially to require bilingual -- Ukrainian and English – classes. “Although rhetorically Ukraine takes part in the Bologna Process, saying that it wants to participate in the Western world of education, in reality Tabachnyk, with this new law, wants to lower the Ukrainian educational system from the Western system and bring it closer to the Russian system.” The ministry, with its pending draft law, is trying to liquidate Kyiv Mohyla’s English-language requirement and does not want to recognize the Western doctorate, says Kvit. Civil society in Ukraine may or may not be strong enough to withstand the government-led politicization of education. Last month, Ukrainian Catholic University (UCU) hosted a conference of experts on the creation of a new Ukrainian history textbook, an idea supported by the Council of Europe. “The authorities cannot lead a monopoly on historical memory,” said UCU professor Yaroslav Hrytsak in an interview. “What’s needed is civil society initiatives, which can protest this type of monopolization and suggest smart alternatives.” UCU President Gudziak said the changes are an assault on the Ukrainian people and, ultimately, the country: “Russian versions of history generally negate much of Ukrainian historical development, subsuming it into one great Russian narrative. In other words, it’s a history that negates Ukrainian identity. A state and a people, a nation without its historical identity, is not viable.” Alexa Chopivsky is a journalist based in Kyiv. Copyright (c) 2011. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington, D.C., 20036. The original link can be found at http://www.rferl.org/content/ ukrainian_commentary/2320473.html
Committee to Protect Journalists: Everyone deserves to know what happened to Gongadze Æ5 criticized the policies of then President Leonid Kuchma – was last seen on Sept. 16, 2000, leaving the home of a colleague to meet his wife and two young children. His headless body was discovered in a forest outside the town of Tarashcha two months later. Persistent allegations of high-level government involvement in the murder have lingered since late November 2000, when an opposition leader released tape recordings of what he claimed were conversations between Kuchma, his chief of staff (and current parliament speaker), Volodymyr Lytvyn, and then-Interior Minister Yuriy Kravchenko. On the tapes – transcripts of which were carried by news agencies – three male voices discuss various ways of “dealing” with Gongadze. Kuchma and Lytvyn have repeatedly denied involvement. In 2005, Kravchenko
Georgiy Gongadze
was found dead in his apartment just hours before his scheduled questioning in the Gongadze case. Authorities said he had committed suicide but was found to have been killed by two shots in the head.
In protectionist bid, nation may hike fuel import taxes Reuters – Ukraine may introduce an import duty on gasoline and diesel fuel to protect its refineries from Russian and Belarussian competitors who have access to cheaper oil, a senior energy official said on March 2. The measure, certain to push up domestic fuel prices, could be taken within two weeks, Kostyantin Borodin, the head of Oil and Gas Industry Department of the Energy Ministry, said in an interview with Reuters. “Today, three of the country’s refineries (out of seven) are working,” Borodin said. “We expect all but one ... to be in operation (if the import duty is introduced).” Local refineries, including those owned by Russia’s TNK-BP and LUKOIL, have asked the government to tax imported gasoline at $179.9 per ton and diesel fuel at 80 euros per ton. “Refineries in Belarus, Kazakhstan and Russia are getting oil with significant price discounts,” Borodin
said. “In Belarus, where most imports come from, they can save $150 per ton of oil due to the difference in (Russian) export duties alone.” Both Ukraine and Belarus rely on Russian oil supplies but Moscow applies a lower export duty to shipments for Belarus with which it has a customs union. The volume of crude processed by Ukrainian refineries halved to about 10 million tons last year compared with 2005 when the country dropped the previous fuel import duty, according to the Energy Ministry data. Imports of oil products excluding heating oil grew to 4.5 million tons last year from 3.8 million tons in 2009. “The volume of oil processed will grow by 50 percent this year (if the import duty is introduced),” Borodin said. Opponents of the measure have said it would only accelerate inflation and will do nothing to stimulate muchneeded refinery upgrades.
16 News
www.kyivpost.com
March 4, 2011
Once again, Gongadze Suspicions grow investigation turns away that Ukrainian weapons end up from Kuchma, Lytvyn Æ1 murder “a killing on verbal command” rather than a contract killing. The new designation could pin the ultimate blame for ordering Gongadze’s murder and kidnapping on the late Interior Minister Yuriy Kravchenko, killed by two gunshot wounds to the head on March 4, 2005. This could shield from prosecution Kuchma and Lytvyn, then Kuchma’s chief of staff, whom many suspect of involvement in ordering the killing. Kuchma and Lytvyn have repeatedly denied any connection with the murder. Yanukovych, just as his predecessor Viktor Yushchenko did, has pledged to press for justice in the case. Kravchenko allegedly gave orders to Interior Ministry General Oleksiy Pukach, who has been in jail for nearly two years without trial, to carry out the killing with three other police officers now serving prison sentences. The Gongadze case is the leading symbol of the lawlessness and impunity that epitomized the Kuchma era, from 1994-2005, and that still bedevils the nation today. After being trailed by police for weeks, Gongadze – the cofounder of Ukrainska Pravda website – was kidnapped near his office, driven to the country by four officers, beaten, strangled, beheaded and buried. Although Pukach reportedly admitted to carrying out the murder and implicated both Kuchma and Lytvyn, his testimony hasn’t been made public. But according to his former lawyer, Oleh Musienko, Pukach has testified that Kuchma and Lytvyn should stand trial for the killing. Pukach’s three subordinates – Valeriy Kostenko, Mykola Protasov and Oleksandr Popovych – were convicted in March 2008 and sentenced to 12-13 years in prison. Pukach went into hiding from 2003 until police caught up with him hiding out in rural Ukraine on July 21, 2009. Pukach’s former lawyer, Musienko, said that Pukach told investigators that Kravchenko, the dead interior minister, former deputy Mykhailo Dzhiha (now governor of Vinnitsa Oblast) and Lytvyn met In Kravchenko’s Kyiv office on Sept. 17, 2000, the day after Gongadze’s murder.
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Æ “There is no way this will end quickly.” – Andriy Fedur “Pukach told me that he was introduced to Lytvyn at that meeting as ‘the man who carried out the order to get rid of Gongadze,’” Musienko said. “Pukach told me that Kravchenko then asked Lytvyn to pass on to former President Leonid Kuchma that his subordinates would carry out any order.” Although Pukach reputedly removed Musienko as his lawyer, Musienko said: “I don’t rule out that Pukach will ask me to represent him again when his case comes to trial.” If Pukach implicated Kuchma and Lytvyn, it would not be the only basis to suspect them of playing a role in Gongadze’s murder. Tape recordings by ex-Kuchma bodyguard Mykola Melnychenko appear to show that Kuchma, Lytyvn and other high-ranking administration officials expressed displeasure with Gongadze’s journalism and plotted ways to silence him. “Take care of him,” a voice that sounds like Kuchma’s said on recording dated June 12, 2000. In another recording, an irate Kuchma reportedly said of Gongadze: “We need some Chechens to kidnap him for ransom.” Kuchma has denied the authenticity of the recordings, which has never been proved conclusively. People close to the Gongadze family say the appeals court ruling is yet another setback in the search for justice. “The appeals court ruling means the Gongadze murder case may drag on forever,” Valentyna Telychenko, attorney for Gongadze’s wife, Myroslava, said. Telychenko said Pukach has for months been reading the govern-
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ment’s case against him, which runs to thousands of pages. “When he finishes with that, prosecutors will formally present him with the summary of their indictment. The case will then be heard in Kyiv’s Pechersk district court. If the judge during the trial thinks the case should be upgraded back to the status of contract killing, the General Prosecutor’s Office would have to re-open its official investigation and press new charges,” she said. However, Yuriy Boychenko, a spokesman for the prosecutor general, said Pukach would remain in pretrial detention until his case goes to trial. “Kyiv’s Pechersk district court on March 3 extended Pukach’s pretrial detention by two months,” Boychenko said. “He will remain in custody until the case against him goes to trial and the court reaches a verdict.” Even before the March 2 ruling, Andriy Fedur, who represents Gongadze’s mother, Lesya, said he was skeptical that the case would go to trial quickly. Pshonka, the top prosecutor, only last year said the case would go to trial in January. In an open letter addressed to Yanukovych, the U.S.-based Committee to Protect Journalists on March 2 said it is “deeply disturbed” by the recent actions of Ukrainian authorities that threaten to upend progress in the 10-year-old investigation. “All perpetrators of this heinous crime, regardless of their rank, influence, and position, must be brought to justice,” CPJ Europe and Central Asia Program Coordinator Nina Ognianova said in the letter. But those seeking justice for Gongadze say the latest development in this case, beset by cover-ups and botched criminal procedures from the start, suggests that the current authorities are as disinterested in getting to the bottom of this case as when the murder happened over 10 years ago. “There is no way this will end quickly,” said Fedur. Kyiv Post staff writer Peter Byrne can be reached at byrne@kyivpost.com and Olesia Oleshko can be reached at oleshko@kyivpost.com
in wrong hands Æ2 Ukraine as Libya has received Kalashnikov rifles from a range of suppliers […] but there is use of Ukrainian weapons in other conflicts in Africa,” said Paul Holtom, director of the arms transfers program at SIPRI. But, Holtom added: “Kalashnikovs are the items that would be most likely covered by the category in question.” According to Holtom, Libya’s desire to purchase Kalashnikovs is traced from a secret U.S. State Department cable leaked by the WikiLeaks whistleblower website. The cable, dated Aug. 18, 2008, states that U.K. company York Guns was trying to purchase 130,000 Kalashnikovs from Ukraine for export to Libya. British authorities refused to grant a license out of concerns about the large quantity of Kalashnikovs requested. One of the favorite destinations for Ukrainian exports is sub-Saharan countries, where Ukraine allegedly not only supplies weapons, but also maintenance, technical support and personnel for aircrafts. Media have reported that a Chadian unit operating Ukrainian Su-25 combat aircraft, and Mi-24 and Mi-17 helicopters “appears to be under the control of contracted Ukrainian personnel.” The global intelligence company Stratfor on Feb. 22 quoted sources in Libya stating that Ukrainian pilots were flying Libyan MiG aircraft to fire on protesters in Tripoli. Ukraine’s foreign and defense ministries, however, quickly denied the allegations and no confirmation has since surfaced. Protests in Libya started on Feb. 15. One week later, on Feb. 22, Gaddafi said protesters deserved the death penalty and is mounting an all-out effort to stay in power. Libyan soldiers and mercenaries from African nations are currently using small weapon to suppress the revolt. Ukrainian arms export was a hot topic in several confidential U.S. cables released by WikiLeaks. A message dated Sept. 11, 2009 reported that Somali pirates hijacked the MV Faina vessel, which was transporting
33 T-72 tanks, artillery, light weapons and ammunition from Ukraine to the Kenya. According to the cable, the final destination of the shipment was South Sudan. Ukrainian officials denied the reports until U.S. diplomats shared satellite photos of the shipment with their colleagues. The photos showed tanks T-72 being unshipped in Kenya, transported to railway settling for later transportation to South Sudan. Such sales to Sudan would violate international sanctions imposed by the United Nations Security Council because of the alleged genocide that has taken place during a protracted and bloody civil war. Ukraine does not track re-export of its weapons to countries suspected of harboring terrorists. “It’s too much work,” Valentyn Badrak, director of the Kyiv-based Center for Army Conversion and Disarmament Research, said. SIPRI’s Holtom said while Ukrainian authorities have taken steps to improve the functioning of their export controls and also transparency with regard to arms exports, the country has been unable to fully shake the reputation gained in the 1990s and early 2000s as an irresponsible arms exporter. “I am inclined to believe that this is due to the fact that the opportunity for profit seems to trump all other considerations, in particular risks of diversion or potential use in conflict or the commission of human rights abuses,” Holtom said. Former Ukrainian officials, meanwhile, continue denying charges that they help arm dictatorships. “I can say there were no direct arms exports to Libya from Ukraine. It was military equipment and machinery. I don’t think Ukraine was among those countries that armed or is arming now Gaddafi regime,” Nalyvaichenko, the former head of Ukraine’s SBU state security service, said on Feb. 23 while appearing on Channel 5. Kyiv Post staff writer Yuliya Raskevich can be reached at raskevich@kyivpost. com
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News 17
March 4, 2011
Ruslan Salyutin, who coordinates organ transplants in Ukraine’s Health Ministry, says: “Medicine is business, and it always will be.” (Oleksiy Boyko)
Those who recruit people to sell their bodily organs for transplants find fertile ground in impoverished rural areas, such as this village in Moldova. In Ukraine, hundreds of people – sometimes wittingly, sometimes not – get caught up in the trade. Meanwhile, a strong tradition of organ donation hasn’t taken root in Ukraine. (Nikolae Pozhoha)
Many people in need even as others sell their organs abroad Æ1 openly hawking body parts. “I am urgently selling my kidney, a part of my liver or spinal marrow. 25 years old. I don’t drink or have any sexually transmitted diseases. The price is $45,000,” reads one post on a Ukrainian website. Offers another: “I am selling the liver of a 16-year-old boy. He is healthy, he doesn’t drink. The price is 60,000 hryvnias ($7,500). Mirgorod, Poltava region.” The donors are primarily from Ukraine, Russia, Moldova and other former Soviet countries, where poverty makes the allure of a large paycheck much brighter. According to human rights activists, intermediaries buy kidneys for anything from a few hundred dollars to $10,000, before selling them on at five to 10 times the price. The donors are often volunteers, desperate for cash by any means. Others are trafficked abroad by recruiters who trick or force them into leaving Ukraine and going to countries where donating organs to non-relatives is legal. Nicolae Brdan is one such victim. He left his impoverished Moldovan village in 2000 having been promised a job in Turkey. Arriving there in a group of peo-
Æ A top transplant surgeon accused of illegal trafficking ple from Moldova, Ukraine’s western neighbor and Europe’s poorest country, his passport was seized from him by the people who had recruited him. They offered him only one way home – by selling one of his kidneys. “I hesitated for a month,” whispered Brdan, 35, through yellow teeth. “But I had no choice. You can’t come back without your documents.” He had been tricked into going to Turkey by a woman in the neighboring village. “Few come back,” said Marina Yevsyukova, director of the legal department of the human rights center La Strada Ukraine. She says the opera-
The rich get transplants, ‘the rest just die’ In Ukraine, 1,000 people are waiting for a kidney, another 1,000 are hoping for a liver, and a further 1,000 need a heart. Their hopes of receiving new organs are slim, as there is no tradition of donating organs in Ukraine, as in the West. As a result, there are only around 120 organ transplant operations per year in Ukraine. In the U.S., a regional clinic performs 120 transplants per week, according to Ruslan Salyutin from Ukraine’s Health Ministry. Lilia Volovych, 42, is one of those waiting for a kidney. She has been living without a kidney for 13 years, after hers were removed when they developed a disease. Volovych comes to a Kyiv clinic every other day for 4 1/2 hours of dialysis treatment, and holds out little hope for getting a new kidney. Her family has a history of kidney problems, and she has no relative with two kidneys. According to Ukrainian law, organs can only be received from close relatives or the recently deceased. Doctors say that convincing relatives of a person who had just died to donate his or her organs in Ukraine is difficult. Those who agree often ask for money, which is against the law. People are also suspicious about doctors’ motives, given the corruption in the sector. Rich patients who can afford the cost may travel abroad to receive a transplanted kidney from a donor. “The rest just die,” says Salyutin.
tions are often done unprofessionally, causing injury and even death to the victim: “Sometimes, they even cut out the victims’ hearts and both kidneys.” Yevsyukova described a call to one of the center’s psychologists from a man who travelled to Israel to work as a nurse in a private clinic. One day, he found himself lying in a medical ward after an operation. Upon returning to Ukraine he went for a medical checkup and learned that he was missing a kidney. Yevsyukova estimates several hundred Ukrainians are trafficked for organs every year, although she says it’s impossible to estimate the number of victims. As the crimes occur abroad, those that perform the operations are generally able to avoid being caught and prosecuted in Ukraine, where they could face prison sentences of five to seven years. The Interior Ministry reported last fall that it had broken a criminal network of organ traffickers, who for the past three years delivered organs from Russia, Belarus, Uzbekistan, Ukraine and Moldova to Israeli recipients in Azerbaijan and Ecuador. One of those accused is leading kidney-transplant surgeon Vladislav Zakordonets from the Shalimov Clinic, one of the most well-known transplant clinics in the country. Zakordonets, along with two other doctors from the clinic, are currently in detention while the case is under investigation. “None of the alleged donors told Zakordonets: ‘You have recruited me, you have trafficked me and you have bought my organ,” his lawyer, Ihor Ivanov, told the Kyiv Post. Zakordonets has told the Ukrainian press that he is not guilty because the operations took place in Azerbaijan, where organ donations from people other than close relatives is allowed. Zarkordonets’ continued imprisonment means that one of his patients at the Shalimov Clinic had his transplant left incomplete. The surgeon took out one of 12-year-old Vasya Sopko’s kidneys, and was supposed to remove the second and replace it with one of his grandmother’s, but was detained before he could.
The low level of transplant expertise in Ukraine means that there is no one at the clinic who can complete the operation. Meanwhile, in Moldova, organ trafficking victim Brdan is struggling to survive. He had been promised $3,000, but was given $1,700, and then had to pay $100 for transport home – by bus, one week after the operation. He can’t work, and the pain from his back, where his kidney was removed, has spread down his left leg. When he walks, he limps badly.
In his remote village, situated on Moldova’s border with Romania, he isn’t the only one suffering. Locals estimate that almost half the village’s inhabitants – as many as 18 people – have sold their kidneys after being tricked, like Brdan, by the promise of work in Turkey. Anna Rotary, a 49-year-old cleaner, saw them go and return. “People needed money. Everybody needs money,” she says. Kyiv Post staff writer Irina Sandul can be reached at sandul@kyivpost.com
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Lifestyle
Celebrate Women’s Dayy on March 8 by tracing evolution of a Ukrainian n woman. Æ23
March 4, 2011
Play | Food | Entertainment | Sports | Culture | Music | Movies | Art | Community Events
Scandal-tainted vote goes to Mika Newton
Singer Mika Newton wins Eurovision song contest in Kyiv on Feb. 26. (Kyiv Post photo) BY O K S A N A FA RY N A FARYNA@KYIVPOST.COM
Scandal and Ukraine’s participation in Eurovision, Europe’s top pop song contest, seem to go hand in hand. In sticking with tradition, this year shaped up to be no different. Although Mika Newton was officially recognized as Ukraine’s choice for this year’s contest, the results of the national final have been widely derided as unfair. Many observers and fans think that the contest was rigged and other contestants, Zlata or Jamala, should represent Ukraine. Jamala, considered the hot favorite and already an established star, finished third in the final runoff that was broadcast on First National Channel on Feb. 26.
Voting was conducted by a panel, on the Internet and by SMS. Newton won all three, but her victory in the SMS poll aroused suspicions after it emerged that, on average, each phone that voted for her sent 14.5 messages. For Jamala, the figure was 1.7 per voter. “We hope that the SMS voting was honest, not rigged,” said Hanna Herman, a jury member and deputy head of Ukraine’s presidential administration. Otherwise, Herman said it appears that “money played more of a role than talent, something I did not want to happen.” It’s not the first time that foul play has been suspected. In 2010, the contest was also deemed uncompetitive when the channel’s management chose Vasyl Lazarovych, a little known singer, without holding a public vote. The
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choice was eventually overturned in a repeat contest. One year earlier, singer Anastasiya Prikhodko was eliminated from the competition in a move seen by some critics as a plot to ensure victory for one of her top competitors. Prikhodko retaliated by representing Russia at Eurovision instead. This year’s selection contest took place in a studio crammed with celebrities, 19 contestants, their teams and fans. Zlata Ognevich, 25, from the Crimean city of Sudak, started the show. While performing her most famous song “The Kukushka” she tried to imitate the singing of a cuckoo. She was joined on stage near the end of the performance by a dancer waving giant brown wings. Jamala, or Susana Jamaladynova,
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demonstrated her unusual voice and performing style, which is considered to be a mix of jazz, soul, blues and gospel. She went on stage in a mocking crinoline skirt with an energetic song Smile. Jamala. 27, was born in Kyrgystan to a Crimean Tatar family which was deported by Jozef Stalin from Crimea. Her family returned to Ukraine a year after Jamala was born. After their performances Jamala and Zlata went to their dressing rooms and nervously waited for the voting results. Meanwhile Mika Newton, born Oksana Hrytsay in Ivano Frankivsk Oblast, looked more confident. The 24-yearold singer sat in an armchair close to the entrance to the stage. Surrounded, naturally, by a bodyguard and a makeup artist, she was visible to everyone, including fans shouting: “Our Æ32
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Food Critic BY MARK RACHKEVYCH H .CO CO M RACHKEVYCH@KYIVPOST.COM
Pizza as Italians know it in new restaurant Il Molino Kyiv has no shortage of Italian restaurants. So when I spoke with restaurateur Michael Don last summer, the Mirovaya Karta Corporation co-founder, his plans to open a new pizzeria didn’t break culinary ground for me. But eight months and three seasons later, when Don’s il Molino, or the mill, finally opened its doors in Pechersk, it offered something exclusive for the Kyiv crowd. Decked out with a flaming wood stoked brick oven – big enough to bake eight pies – it ensures that customers won’t have to wait long for their order. It’s made from stone extracted in Italy’s Vesuvius Hills and is certified by the Pizza Bakers Association in Naples, the birthplace of pizza as we know it today. And true to Naples tradition, the pizza crust is thin, crisp and flaky, is topped with generous portions of cheese, and is layered with an unimposing secret pizza sauce, light on Italian herbs and sprinkled with olive oil before it goes into the oven. While debatable, the pizza crust is what makes the pizza – others argue it’s the sauce. The dough here is hand kneaded and spuntossed; they don’t use any plungers to roll the dough out. And to underscore authenticity, 00 Pizzeria grade flour from Italy is used. The stove handles the rest, baking it evenly from the core to the edge besting the precision of any modern day electric or gas stove oven. As expected the handcrafted Boscaiola pizza (Hr 85) we ordered was delicious. It had a faint smoked flavor from the wood burning oven and was topped with spicy salami, mushrooms, and a mixture of mozzarella and parmesan. There are 24 pizzas to choose from including calzones, a desert pizza and the option of adding up to 10 additional ingredients to please any finical palate at an extra cost (Hr 10-35 depending on the ingredient). We also had baked egg plant salad (Hr 55) and a plate of veal carpaccio (Hr 69) while the pizza baked. The salad came on a bed of Boston lettuce and was seasoned with Italian herbs and marinara sauce, a meatless, zesty sauce that is still hard to find in Kyiv’s Italian eateries. A major disappointment was the egg plant. It was chilled and tasted like it came out of a Chumak jar but, thank goodness, the oregano in the marinara took away some of the bland taste. The carpaccio was a relief as it slipped off the olive-oiled plate into our mouths. It was topped with the usual parmesan Æ25
20 Entertainment Guide
Never mind the Balkan
Best classical picks (cpinfo.berkeley.edu)
(flickr.com)
Saturday, March 5
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March 4, 2011
If you like the gypsy punk sound of Gogol Bordello, you will fall for British band Drunken Balordi and their performance of “Never Mind the Balkan” in Kyiv. Although they call themselves a gypsy punk band, they also perform in other genres, such as Celtic and Ska. Apart from a tapestry of styles, Drunken Balordi has an international team: German, South African, Irish and British band members. On their website, they promise to “have you dancing or pogo-ing whether you like it or not.” Saturday, March 5, 10 p.m., Sullivan Room, 8 Prorizna St., (066) 485-5555, www.sullivanroom. kiev.ua, www.drunkenbalordi.com. Tickets: Hr 80-150.
(Courtesy)
Joe Dassin tribute
Sunday, March 13
Joe Dassin is as much a French icon as the Eiffel Tower. Around 20 famous songs of the 1970s genius will be performed by prominent French artists, including stars of “Nortre Dame de Paris” and “Romeo and Juliette” musicals. The show was custommade by producer Christophe Barratier, known for his films “The Chorus” and “Paris 36.” For more authenticity, special retrostyle decorations and costumes have been recreated to evoke the epoch of Dassin’s times. In the early ‘70s there was no place in France you could visit where Dassin’s music didn’t ring. His songs raved at the top of the French music charts. Apart from French and English, this talented French-American polyglot, also recorded songs in German, Russian, Spanish, Italian and Greek. Sunday, March 13, 7 p.m., Palats Ukraina, 103 Velyka Vasylkivska St., 247-2303. Tickets: Hr 150-2200.
Tuesday, March 8 – Only men in “Men’s concert” will perform pieces by Bach, Schubert, Gershwin, Bellini and others at 7:30 p.m., the House of Organ Music, 77 Velyka Vasylkivska St., 528-3186, www.organhall.kiev.ua. Tickets: Hr 20-50. Tueday, March 8 – ballet “Giselle” by Adolphe Adam, National Opera, 50 Volodymyrska St., 279-1169, www.opera.com.ua. Tickets: Hr 20 – 300. Wednesday, March 9 – a jazz night with Yuriy Kuznetsov, a pianist from Odesa, as part of the regular jazz series of Oleksiy Kohan’s “Theme with Variations” at 8 p.m., MasterKlass Cultural Center, 34 Mazepy, metro Arsenalna, www.masterklass.org/eng, 594-1063. Tickets: Hr 50. (Courtesy)
(pinocio.touchpoll.com.ua)
Friday-Sunday, March 11-13
Saturday, March 5 – New Era Orchestra will play pieces by Stravinsky, Vivaldi followed by soundtracks from various movies including Amelie, Amarcord and others at 7 p.m., Master-Klass Cultural Center, 34 Mazepy St., metro Arsenalna, www.masterklass.org/eng, 594-1063. Tickets: Hr 50.
Sunday, March 13
Guitar virtuoso Ladies behind the wheel from Belarus On March 8, women will rule everywhere, even on the roads. To see how ladies race the steel horses, head to the Kyiv center on Women’s Day – an official day off for the whole country. Over 30 charming participants will speed around the city competing for a prize provided by the Kyiv City Auto club. If an awful thought like “I need to stay home” crossed your mind, relax, because women are required to drive by the rules to win the prize. Besides this competition, hang around for a bit longer – some other games and concerts are bound to rock the Independence Square on this special day. Tuesday, March 8, 11 a.m. – 9 p.m., Maidan Nezalezhnosti.
Compiled by Nataliya Horban
Valeriy Didyulya is a virtuoso guitarist from Belarus who plays folk and fusion. When he was five, his mother gave him a guitar, which pretty much determined his future vocation. After graduating from high school, he moved to Spain for a few years where he absorbed the Flamenco flavor into his music style. Apart from Didyulya’s solo, expect the accompaniment of saxophone, flute, percussion, and many kinds of guitars including electric, acoustic, classic and even bouzouki, the Greek guitar. Sunday, March 13, 7 p.m., Zhovtnevy Palats, 1 Instytutska St., metro Maidan Nezalezhnosti, 279-1582.Tickets: Hr 150-700.
www.kyivpost.com
March 4, 2011
Movies
Live Music
Javier Bardem gives exciting performance in ‘Biutiful.’ (www.daemonsmovies.com)
SPANISH FILM FESTIVAL For the seventh time the Spanish Film Festival comes to Kyiv, bringing the best of recent releases from well-known Spanish directors Alejandro Gonzalez Inarritu, Alex de la Iglesia, Daniel Sanchez Arevalo and Salvador Garcia Ruiz. The festival opens with “Me too,” the drama about a man with Down’s syndrome and his relationship with an outsider, who seems totally inappropriate for him at first sight. “Biutiful” tells the story of a loving father of two, played by Javier Bardem, who mixes in the criminal circles of Barcelona and sometimes hears the voices of the dead. His surrealistic life changes when he learns he is going to die of cancer soon. Other films star a range of unusual characters, including two clowns fighting for the love of the most beautiful woman in the circus in the drama “A Sad Trumpet Ballad,” a few eccentric overweight people attending a support group in the comedy “Fat People,” and three young artists getting stuck in a conventional love triangle in “Paper Castles.” The films are screened in Spanish with Ukrainian subtitles. TRADING PLACES Language: English with English subtitles Comedy. USA (1983) Directed by John Landis Starring Eddie Murphy, Dan Aykroyd and Ralph Bellamy The life of respectable businessman Louis Winthorpe III, the manager of the richest company on Wall Street, changes immediately after his bosses, the Duke brothers, make an unusual bet. One of the brothers thinks that anyone can run the company, even the most inveterate scoundrel, without higher education. Putting their money on the line, the broth-
Entertainment Guide 21
ers find street swindler Billy Ray Valentine, whom they offer to lead the company instead of Winthorpe. The eccentric brothers have no idea that by replacing a major businessman with a rogue, they risk much more than they could ever imagined. THE MILK OF HUMAN KINDNESS Language: French with Russian or Ukrainian subtitles Drama. France (2001) Directed by Dominique Cabrera Starring Patrick Bruel, Marilyne Canto and Bruno Salvador After experiencing panic and fear of motherhood, Christelle disappears. Her husband Laurent looks everywhere for his wife, asking her father, mother, sister, friends. What happened? Where is she? It turns out that she is quite close as a neighbor upstairs gave her shelter in her home. The woman listens to Christelle and tries to help her as much as she can. Christelle’s disappearance reveals to everyone the truth about love and the ways of reviving it. “WOMEN WITH CAMERA” FILM FESTIVAL For nearly 30 years, the French town of Creteil held the International Women’s Film Festival, encouraging women to become film directors. Ukrainian viewers will sample 11 movies on various issues, such as feminism, sexuality, personal life choices and self-realization. “When We Leave” tells the story of a Turkish woman trying to live her own life in Germany despite her family’s strong disapproval. In“Pudana. Last of the Line,” German girl Neko finds herself in a remote Russian village where she gets so homesick that decides to run away. Fourteen-year old Mumine has been growing tobacco since the age of nine, but her
ZHOVTEN 26 Kostyantynivska St., 205-5951 “Women With Camera” Film Festival: The Flowers for Simone de Beavoir March 6 at 1:20 p.m. When We Leave March 6 at 5:20 p.m. Pudana. Last of the Line March 5, 8 at 2:45 p.m. Female response: Our Bodies, our sex March 4 at 6 p.m., March 6 at 7:30 p.m. Shorts: March 4 at 8:10 p.m., March 7 at 2:45 p.m. Three days with the family March 5 at 8 p.m., March 7 at 6:20 p.m., March 8 at 8 p.m. Cleo from 5 to 7 March 5 at 6:20 p.m., March 7 at 8 p.m., March 8 at 6:20 p.m. KYIV CINEMA 19 Chervonoarmiyska, 234-7381, http:// www.kievkino.com.ua Spanish film festival: Me too March 4 at 5 p.m., March 7 at 5 p.m., March 8 at 7 p.m. A Sad Trumpet Ballad March 5 at 5 p.m., March 6 at 7 p.m., March 9 at 7 p.m. Fat People March 6 at 5 p.m., March 9 at 5 p.m. Biutiful March 5 at 7 p.m. Paper Castles March 4 at 7 p.m., March 7 at 7 p.m., March 8 at 5 p.m. MASTERCLASS CINEMA CLUB 34 Mazepy St., 594-1063 The Milk of Human Kindness March 8 at 7 p.m. Trading Places March 10 at 7 p.m. dream is to get a proper education in the short film “Tobacco Girl.” In another short, “It’s Free for the Girls,” Leticia puts her dream of opening a beauty shop in danger as she and her friend attend a party on the eve of an important exam. “Three days with the family” shows Lea and her family working through their misunderstandings while attending her grandfather’s funeral. And a singer spends two hours in fear, as she is about to see her doctor, who, she believes, will tell her she has cancer in “Cleo from 5 to 7.”
Karnavalnaya Zhara band in Docker’s ABC on March 8 (www. chmusic.com.ua) ART CLUB 44 44B Khreshchatyk St., 279-4137, www.club44.com.ua Concerts traditionally start at 8 – 10 p.m. March 4 Carte Blanche, Hr 50 March 5 Grablia, Diadia Vasia, Hr 50 March 6 Soiuz 44 Jam Session, free admission March 7 Bangladesh Orchestra, Hr 20 March 8 Party Girl Party, free admission March 9 Oneyroid, Trutni, Hr 20 March 10 World Tomcats’ Day, Hr 40 DOCKER’S ABC 15 Khreshchatyk St., 278-1717, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. March 4 Mandry, Tex-Mex Company, Hr 70 March 5 Motor’ Rolla, Chill Out, Hr 70 March 6 Vostochny Express, Hr 30 March 7 Tres Deseos Latino Party, Hr 30 March 8 Karnavalnaya Zhara Band for Women’s Day, Hr 50 March 9 Rockin Wolves, Hr 20 March 10 Bangladesh Orchestra, Hr 40 DOCKER PUB 25 Bohatyrska St., metro Heroyiv Dnipra, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. March 4 Tabula Rasa, Red Rocks, Hr 70 March 5 Mad Heads XL, Goodlife, Hr 70 March 6 Foxtrot Music Band, Hr 30 March 7 Angie Nears, Hr 50 March 8 Antitela, Tex-Mex Company on Women’s Day March 9 The Magma, free admission March 10 Ruki v Briuki Rockabilly Party, free admission BOCHKA PYVNA ON KHMELNYTSKOHO 4B-1 Khmelnytskoho St, metro Teatralna, 390-6106, www.bochka.com.ua Concerts traditionally start at 9-10 p.m.
March March March March March March
4 Partizanskie Vytrivky, G Sound 5 Lucky Band, Hot Guys 7 Hot Guys 8 Holiday Boom 9 L.A. 10 Beefeaters
PORTER PUB 3 Mazepy St., 280-1996, www.porter.com.ua Concerts traditionally start at 7:30 p.m. March 4 Yuhym Dym March 5 Max Vatutin March 6 Dandy March 8 Pozitiv Band March 9 Ivan Bliuz March 10 Tysha JAZZ DO IT 76A Velyka Vasylkivska St., 599-7617, http://jazz-doit.com.ua Concerts traditionally start at 8:30 p.m. March 4 Jazz Inside March 5 Tatiana Arefyieva March 8 March 8 Special March 9 Natalia Maksimenko Other live music clubs: GOLDEN GATE IRISH PUB, 15, Zolotovoritska St., 235-5188, http://goldengatepubkiev.com/ TO DUBLIN IRISH PUB, 4 Raisy Okipnoi St., 569-5531, http://www.to-dublin.com.ua/ PIVNA NO.1 ON BASEYNA, 15 Baseyna St., 287-44-34, www.pivna1.com.ua DRAFT 1/2 Khoryva St., metro Kontraktova Ploshcha, 463-7330 KHLIB CLUB 12 Frunze St., www.myspace. com/xlibclub CHESHIRE CAT 9 Sklyarenko St., 428-2717 O’BRIEN’S 17A Mykhaylivska St., 279-1584 DAKOTA 14G Heroyiv Stalinhrada St., 4687410 U KRUZHKI 12/37 Dekabrystiv St., 5626262.
Compiled by Alexandra Romanovskaya and Svitlana Kolesnykova
New Zealand man wins contest to travel to Ukraine in search of bride BY N ATA L I YA H OR B AN HORBAN@KYIVPOST.COM
The fame of Ukrainian girls, who many ironically call the main export of Ukraine, has reached New Zealand. After a month-long contest promising a Ukrainian wife as a prize, the popular kiwi radio station The Rock FM announced the winner on Feb. 28. Winemaker Greg, whose surname is kept in secret, got the most votes from the radio listeners, as well as round-trip tickets to Ukraine and 12 nights in Zaporizhya. Responsible for hooking up with Greg, New Zealand marriage agency Endless Love didn’t explain their choice of this eastern city. Before he leaves home though, Greg will get an unlimited number of translated emails from potential brides and two video conferences. Open to adult single males, par-
ticipants had to fill out an application form consisting of 31 questions. Among them were “What is the greatest length you have gone to or stupidest thing you’ve done in the hope of scoring a particular girl?”and “Some women are nuts, but what can you tell us about your craziest ex that sets her apart from the other nut-jobs?” It was also important to answer things like “Do you shower every day?” and “Do you fold or scrunch the toilet paper?” to win the prize. Greg apparently got most of these puzzles solved. This isn’t his first attempt, however, to find a Ukrainian soul mate. In his radio profile online, he mentioned that he’s already tried to meet a woman from Ukraine but two days before his departure she apparently said that “she’ll be unable to meet during my three weeks in Ukraine.” Kyiv Post contacted the radio station
Winemaker Greg, winner of the Rock FM radio contest.
in attempt to find more about the lucky winner. “Unfortunately Greg is not interested in being interviewed by any media,” replied Kristy Craig, marketing manager of The Rock FM.
It looks like the still-bachelor is busy browsing the agency’s catalogues and thinking of ways to spend another part of his gift – $1,500, a rose bouquet for his bride, a three-hour river cruise, a photo session and interpreting services. With Zaporizhzhya being an industrial city of pipes and metals, it may be a challenge. But Greg seems to be ready for anything it takes, as he describes himself as “confident, exciting, mature, romantic, fun loving, financially secure” and promises to treat his future wife “as a princess.” According to his application form, he is interested in “loving, loyal, attractive romantic, outgoing, exciting young woman who wants to share a life and build a family together.” The contests sparked outrage from some politicians and women’s organizations on both ends of the globe: New Zealand and Ukraine.
On March 1, nine members of the Ukrainian organization Femen protested topless in from of the City Hall but that seemed only to entertain the supporters of the contest. Their picture was uploaded to the “Win a Wife” Facebook fan page, which has more than 2,750 fans, and yielded comments such as “I think it might be time for a trip to Ukraine if that’s how they do things” from user Matt Baeriswyl. New Zealand Labour party rebelled as well but in a more discreet way: “It is a reminder that there is still an attitude towards women in New Zealand that is deeply troubling – that they are commodities to buy and to own,” Carol Beaumont wrote in her blog on Feb. 10. Greg is expected in Zaporizhzhya on March 23. Kyiv Post staff writer Nataliya Horban can be reached at horban@kyivpost.com
22 Lifestyle
www.kyivpost.com
March 4, 2011
Snapping Ukraine’s many faces
A thousand-man strong squad from the presidential troops proves the easiest to shoot. (Courtesy)
are people who rarely come together. That crowd brings negative emotions in me, though I am not politically active. At that time there were talks about a snap election, so I thought I’d take a picture of the new convocation. But after the election I took Rada off my list. They were all traitors there. At any rate, they wouldn’t want to take part in such a project.
BY N ATA L I YA H OR B AN HORBAN@KYIVPOST.COM
For photographer Ihor Haidai, it turned out to be easier to get a thousand soldiers to pose than a hundred girls from a model agency. The Kyiv photographer now has vast experience working with all types of people. For the last seven years, he has been taking pictures of bikers, seminarians, fellow villagers and pregnant women and other groups of Ukrainians that share something in common. The project is called razom.ua, with razom meaning “together” in Ukrainian. The idea of the project came to Haidai when he was looking through old group photos. To make the task more interesting, the photographer set certain requirements for himself. The group he photographed had to be larger than 100 people and all of them must consciously show up for the shoot. For example, a photo of a crowd at a rock concert wouldn’t do. He started to explore the intersection of the staged photo and a snatched moment. But the project yielded a kind of artistically flavored social experiment in the form of 30 black and white three-meter long pictures. This is not the first long-term project Haidai has carried out. One of the most well-known photographers in Kyiv and Ukraine, 50-year-old Haidai is highly regarded for his famous series of naked women on brooms and “Ukrainians. Beginning of the Third Millennium,” showing portraits of Ukrainians. His first exhibition of the Razom.ua project will open in London on March 9. Kyiv Post: What difficulties did you face while working on Razom.Ua? Ihor Haidai: The difficulties were absolutely unpredictable. For instance, while working with Crimean Tatars we found out that there were opposite views regarding the status of photography among younger and older Muslims. In general, Islam doesn’t allow pictures of living creatures, which stems from the idea that “you shall not make for yourself an idol.” Muslims take it more seriously than Christians. Photography emerged only 200 years ago, therefore some interpret it as a potential object for idolatry, while for others it is nothing more than a historical document. So we couldn’t make a group photo until the community made a joint decision, but we managed to persuade the elder of the commune. It is very difficult to work with people. Even modern technology, such as a loud speaker, doesn’t help. There is an amazing observation: When everyone is standing still, facing the camera and only one person turns away, you start to correct him, he will face the camera but everyone else will look at him. That’s when we decided to let it be and not correct anyone. KP: Which photograph was the most difficult to make and which
KP: Can you think of any similar projects in the world? IH: There is one American artist, Tunick Spancer, who takes pictures of a large number of naked people. He gathers them for a flash mob and photographs the crowd. I love this project. First of all, I love taking pictures of nude models. Moreover, I am a nudist by nature. I don’t practice such a lifestyle but I do support it and would love to walk naked if I weren’t afraid of angry people and police. Photographer Ihor Haidai organizes builders in Kotsubynske village near Kyiv for a group photograph. (Courtesy)
was the easiest? IH: We shot a picture of the staff of Premier Palace hotel, which was about 250-300 people. The pictures were taken very late at night, so no noise could be made as there were guests in the hotel. All the staff members were divided into positions on all the four floors and therefore couldn’t communicate among themselves. We asked for a coordinator from the group on each floor but they were inexperienced and couldn’t understand what we wanted them to do. Besides, the hotel gave us the wrong elevator cards — we couldn’t get on all the floors. It took us about two hours to get this shot; we kept people for one hour. I shot while hanging by mountain-climbers’ rope. This is the only vertical picture we have. All I can say is the problems that get in the way of this project are the same very problems that complicate our lives. We had the easiest time taking a picture of a thousand soldiers of the presidential troop. KP: All the pictures are black and white. Does it have any significance for the project? IH: It does. We want to draw attention to the people and their faces. If the pictures were colored, we’d get a festival. KP: Did your outlook on life change during the seven years you worked on the project? IH: I realized how difficult it is to gather people, even for those top managers who seemingly have all the rights to do so. But as a citizen, I like that people had changed in that regard. During Soviet times people would do anything they were told. Yes, they would get pissed off or grumble but they wouldn’t rebel. People nowadays are more individualistic. Even some pictures we made five years ago would
get involved that much — I wanted to observe the way people would place themselves. There was one guy who kept hiding — he liked being an outsider, though he knew that [participating] wouldn’t get him in trouble. KP: Do you link the difference in reactions at the beginning and the end of the project to the political and economic changes? IH: Yes. People value their time now. When we started the project, this tendency wasn’t widespread at all.
Photographer Ihor Haidai
be impossible to shoot now. Now I understand why foreigners are so surprised to see so many people gathered for the photo session — this will not be financially easy to do in the West. KP: Which one of the pictures you did earlier would be difficult to make these days? IH: Crimean [chemical] plant Titan. The managers wouldn’t want to intervene with the production process or workers themselves may refuse to take part in this. People became more independent and free. Once we were taking a picture of construction workers. That firm has three managers. One agreed to cooperate in making a picture, the other didn’t get why this was necessary, and the third one added “some nutty photographer persuaded us.” Such cases were common, by the way. Nevertheless, when all of them gather for the shoot, the action starts — they move up and down this construction site, the topmanagers stand separately. I didn’t
KP: Why will the first exhibition take place in London? IH: Foreign art curators are more active. I think the project has the potential to be quite successful abroad and exhibitions are a doorway to sales. I do plan to make an exhibition in Kyiv this year — I live in this country and its people are the heroes of my project. Kyiv Post staff writer Nataliya Horban can be reached at horban@kyivpost.com
KP: The participants didn’t get any money, did they? IH: It was all voluntary. We wanted to convince people through reasoning and the idea itself. We could try to motivate them financially but we didn’t try. I am sure if we promised to pay $100 for participation, everyone would show up. Such a mechanism is too simple, though, too tested. KP: Were you turned down often? IH: Half the time, but the reasons were different. For example, we had an idea to make a group photo of models. I was warned that the girls would probably not come unless I paid them. We gave it a shot, found a nice spot, but very few girls showed up and we couldn’t include the picture in the project. The second attempt also failed. Once you deal with a group of more than three, everything becomes complicated, not to mention the situation with hundreds of people involved. KP: Did you ever consider taking a group photo of Verkhovna Rada? IH: I wanted to take their picture two years ago, even started negotiations and chose a place. But at that time there were serious problems. Besides, they
Up to 300 employees of Premier Palace in Kyiv pose for a photo taken at night so as not to disturb guests. (Courtesy)
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Lifestyle 23
March 4, 2011
Parliamentarian Hryhorovych: ‘21st century is age of women’ BY E L E N A Z AG R E B IN A ZAGREBINA@KYIVPOST.COM
As International Women’s Day celebrates its 100th anniversary on March 8, it’s a timely reminder of how much greater opportunities women have today than when the day was first marked. If most Ukrainian women were housewives a century ago, and 50 years ago they were only just starting to train as doctors and teachers, in 2011 women are capable of climbing almost any heights, despite continuing problems of sexism that haunt the corridors of even the country’s highest office. The March 8 holiday was started by Clara Zetkin, the world-famous German politician who campaigned for equal voting rights with men. It was celebrated for the first time in Germany, Austria, Switzerland and Denmark in 1911 to promote economic, social and political parity between women and men. Today, recognition of March 8 is mostly limited to Eastern Europe and celebrates the evolution of a housewife into a professional woman. But it’s still tough for this woman to break through sexist stereotypes prevalent in Ukrainian society. “Yes, women do everything these days,� said lawmaker Liliya Hryhorovych of Our Ukraine's minority faction. “Who started small and medium businesses in the ’90s? Women. Who immigrated to Italy to feed their children? Women again.� Apart from a career in politics and medicine, Hryhorovych, 54, holds a doctorate in philosophy. Her achievements, however, are more an exception to a general trend in Ukraine where women are discouraged from the positions of power by the male-dominant political and business world. “In parliament, women make up only 7 percent of deputies, and in government, there’re none,� said Tamara Zlobina, the head of the community project Feminism-is, founded to dispel myths. “Our society has double standards. Women must fight for their rights because they often exist only on paper but are not guaranteed in life.� None of this dilemma existed a cen-
Parliamentarian Liliya Hryhorovych (Joseph Sywenkyj)
tury ago. Hryhorovych’s mother, Maria, born in 1922, was educated to be a teacher, but right after the wedding she chose to stay at home and was a housewife for the rest of her life. “Mom would send us to school early in the morning, then she’d clean the house, and when we came back the dinner was already waiting,� said Hryhorovych.
It was her mother who helped her through high school, taught her how to read fast and encouraged her to learn English, which was a rare skill to have back in those days. She died early – when Hryhorovych was only 15. Stepan Malofiy, Hryhorovych’s father, was educated in Harvard and Vienna and spoke seven languages. In 1939, though he was sent to Siberian labor
camps for 25 years. When he came back, he became a priest. His wife Maria, however, forbade the daughter to tell anyone that her father was in the clergy. “She whispered to me: Tell everyone that he’s a teacher, but just doesn’t live with us. There was no God then, so there couldn’t be such a job,� remembered Hryhorovych.
When Hryhorovych finished high school women were allowed to enter universities. More and more girls started choosing careers over housewives’ duties. But still, their choice was tiny, according to Kateryna Levchenko, the head of international women’s rights center La Strada. “Some 50 years ago women’s professions were limited to a teacher, a nurse, or a doctor,� said Levchenko. Hryhorovych, born in 1957, confirms the trend as she only had two choices: to become a doctor or a teacher. “My father told me that if I become a teacher, I would have to lie a lot,� said Hryhorovych. “But if you decided to be a doctor, you would have to tell the truth; otherwise your patient would die. So I chose the truthful profession.� On the application to the medical school, however, she mentioned that her father was a priest. Soviet professors rejected Hryhorovych and so “for three years I had to clean restrooms and corridors in a hospital before they finally accepted me.� A parliamentary deputy for over a decade now, she is speaks confidently and is brimming with ideas. To Levchenko, it’s a huge leap compared to the house-bound woman of a century ago. “Men and women have exchanged social roles. Women can even get into the military and law enforcement nowadays,� she said. But the problem is that they are discouraged by prevalent stereotypes that woman belongs to a kitchen. President Viktor Yanukovych and Prime Minister Mykola Azarov, among other politicians, often make sexist remarks showing that psychologically Ukraine is still stuck in 1900s. Hryhorovych, however, believes that women will ultimately take charge in Ukraine. “Women in the 19th century were fighting for the right to vote. Women in the 20th century – for the right to be elected. And I hope that women will rule our country, doing it with their heart and brains. The 21st century is the age of women,� said Hryhorovych. Kyiv Post writer Elena Zagrebina can be reached at zagrebina@kyivpost.com
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24 Lifestyle
www.kyivpost.com
March 4, 2011
Gadget Guru
Gadgets are a girl’s best friend Samsung La Fleur
AL E X E Y B ON DA R E V BONDAREV@KYIVPOST.COM
Nobody knows what women want, especially when it comes to cuttingedge technology. While men are often eager to dive into the vast ocean of possibilities that the latest gadgets provide, women tend to stick to simple solutions and care about form much more than content. For many years, manufacturers thought exactly this way: Phones for women should be simple (no smartphones!) and pink. As for laptops, it wasn’t possible to make them simpler than the operating systems already were. So the laptops should just be pink. It was not until iPhone’s entry in 2007 that manufacturers started to feel that women also want to browse the web, check emails or chat using their phones. Smartphones became simpler to use, and the era of plain pink gadgets came to an end. Yet some of them are still out there. Kyiv Post presents a small guide to help ladies decide what they want.
Samsung La Fleur phohes
Korean electronics giant Samsung targets their La Fleur phones for women who consider themselves “smart and beautiful.� The phone series has three models. Two of them are smartphones based on the newest Bada platform that supports multitasking and software installations from the Samsung Apps online store – that’s what business women can take advantage of. Women that care about looks can enjoy an exquisite design with a nice flower pattern on the front and back panels. Both Bada smartphones (Wave 723 and Wave 525) can easily provide their owners with Internet access (including WiFi). Wave 723, which is more expensive ($210), also supports GPS navigation and has a five-megapixel camera with a flash. The camera can’t be a substitute to a usual digital camera, but the quality will be good enough to share simple snaps of, say, your cat with your friends. The Wave 525 ($175) has a mediocre 3.2 megapixel camera. All cats might look the same on its photos. The third of the La Fleur breed – the cheapest E2530 model – is a simple clamshell phone with a black exterior and red interior. You don’t always need smartphone capabilities, says Samsung.
Apple iPhone and iPad Women love Apple products – perhaps because they are so glossy. Or maybe it’s the other way around with Steve Jobs insisting on their exquisite look because he wants to attract female buyers. It doesn’t matter if the frame’s made of glossy plastic or glass as with the latest iPhones and MacBook or aluminum iPad and MacBook Pro, women make up at least half of all buyers of Apple products. That’s a good result considering that other companies mainly aim their gadgets at geeks and nerds. For example, 75 percent of Android users (a competing operating system for mobile devices made by Google) are men. Apple’s operating system, called iOS, is so simple to use that the company decided not to release a huge manual with it. There is only one button and only one Settings menu. Installation of software doesn’t require any special knowledge. So for women Apple is the king of gadgets. And as for a pink question – well, Apple is like a huge shark accompanied by myriads of suckerfish. There are thousands of companies that produce accessories for iPhone and iPad or MacBook. And there are plenty of pink cases among their products. A phone is made for talking, isn’t it? So that’s what you can do with a fancy but quite affordable E2530 – talk, talk and talk. No GPS, no WiFi, a plain 1.3 megapixel camera that might make your cat look like a main character from last year’s Predators movie. But who cares? It’s just a phone.
Pink laptops What if you are smart and beautiful at the same time but when it comes to laptops you still prefer them in pink? And you don’t want to pay more for expensive MacBook or simply prefer orm? the good old Windows platform? ss Sony is by no means less le, stylish and fancy than Apple, apbut has a bunch of pink lapw C tops. For example, the new odel series include a 13.3 inch model encased in pink aluminum. Even its touchpad is pink. The laptop as weighs only 1.8 kilograms, has 3G network connectivity and can work as long as nine hours without recharging. You can get thiss
Apple’s iPhones
pink miracle for $900. There is more affordable model (also pink) without 3G and with a much less powerful processor for $550. A netbook from Dell, another major PC manufacturer, can also add a touch of pink to your life. You can get Inspiron 1018, a portable 10 inch model for $330. Not much computing power under the hood, but smart and beautiful women don’t always need to edit streaming video or render 3D images on the run, right? Inspiron is good enough to check your email while drinking coffee in a nice cafe.
There are a couple more powerful Dell laptops available in red and pink. But probably not many women would want to carry a huge 15-inch laptop weighing more than 2.5 kilograms. Less well-known manufacturers from Taiwan – Acer, ASUS – also offer a number of models in red and pink. Nothing special there. It’s not only color that matters. After all you can paint a tank in pink, but women will still prefer a small and fancy car. That’s what Samsung engineers finally understood. The latest Samsung Notebook 9 Series, despite its black c color, looks like a thin paper folder. W Women will definitely like it. These l laptops are thinner and more powerful t than the latest MacBook Air. Selling for $ $2,000, it’s pricey, but no business lady w resist this beautiful and powerful will c creature. This is definitely what women want. Kyiv Post news editor Alexey Bondarev can be reached at bondarev@kyivpost.com Dell pink laptop
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Lifestyle 25
March 4, 2011
New interpretation of Nutcracker impresses with its dancing, set Art tic c Critic BY YULIYA RASKEVICH KEVICH RASKEVICH@KYIVPOST.COM VPOST.COM
Spring may be starting to appear in Kyiv, but the National Opera House is continuing the winter mood with performances of the Nutcracker ballet. The hall was full for the performance on Feb. 25, with a matinee scheduled for March 6, and the possibility of further performances in April. There’s much to admire in the latest interpretation of the classic Christmas tale by Valery Kovtun, the National Opera House’s chief cho-
reographer. He improvises on the 109-year-old ballet, composed by Pyotr Tchaikovsky, splitting the role of the Nutcracker between ballerina Tetyana Sokolova, who plays the toy, and Andriy Gura, who dances as the Prince. The Nutcracker is a love story b between teenager Clara and a toy Nutcracker that turns into a prince who defends the girl from an army of mice led by the Mouse King. In the first act, the Nutcracker is played expertly by Sokolova, who moves just like a toy – her legs and arms hang loosely when she is being passed around, but when dancing she is brilliantly precise in all her movements. After defeating the Mouse King, the second act sees the Nutcracker, now a prince, and Clara, played by Natalya Lazebnikova, touring the Land of
Natalya Lazebnikova performs the part of Clara in the ‘Nutcracker’ with Andriy Gura as Prince. (Alexandra Putrova)
Sweets. There they are greeted with beautiful dances – Spanish, Arabian, Chinese and Russian. The most colorful dance is the Waltz of the Flowers. The main pas de deux, the Andante Maestoso, as Tchaikovsky called it, is the most romantic part of the ballet and the culmination of Clara and the Prince’s love affair. Gura as the Prince impresses with his high and light leaps, but his lifts appeared heavy. Sometimes it even seemed that he was not catching his partner but dropping her and this rather spoiled the romance of the pas de deux. Lazebnikova as tiny Clara gave a stunning performance, with a precise and well-balanced fouettes, or turns, soft arms in the port de bras, a series of arm movements. The only thing that was less pleasing on the eye were her leaps which seemed heavy. The mice dance was a nice surprise of the evening. The costumes, choreography and performance made you believe that you were truly surrounded by rodents. Igor Bulychov as the Mouse King was striking and was even more like a huge bat, leaping effortlessly with his flying cloak. Kovtun’s version of the choreography is much better than Kirill Simonov’s recent popular staging at the Mariinsky Theater. The St. Petersburg version of pas de deux looks more like a simple dance than classical ballet. The fight between the Nutcracker and mice looks boring and the magical Waltz of the Flowers lacks symmetry and synchronicity. The musical performance by the Kyiv Symphony Orchestra was flawless, and the conductor Allin Vlasenko received an ovation at the end. Another stand out was the set design of Maryna Levitska, the main painter of the National Opera House. The winter city and bright costumes really bring you into the Christmas fairytale. Kyiv Post staff writer Yuliya Raskevich can be reached at raskevich@kyivpost. com
True to Naples tradition, the pizza crust is thin, crispy and flaky at Il Molino's Pizzeria near metro Arsenalna. (Joseph Sywenkyj)
Food Critic: Friendly, laid-back Il Molino serves fine Italian Æ19 and garnished with tomatoes, rucola and capers. We opted for juice refreshments in lieu of anything stronger. I took the Ukrainian route with a glass of tomato concentrated juice (Hr 12) while my partner had the more nutritious freshly squeezed carrot juice (Hr 29). Il Molino’s kitchen is supervised by Franco Pisciottano, a native of New Haven, Connecticut who spent more than 25 years in southern Italy perfecting the art of pizza making. Customers can supervise him as well. There’s a horizontal mirror above the pizza station reflecting every hand tossing movement of the pizza makers including the toppings, flour and dough. The place is relatively family friendly boasting a large non-smoking section, two high chairs for children and, according to my dining partner, has purse il Molino Pizzeria 17 Moskovska Street (044) 280 77 22 Open: 11:00 – 23:00 Metro: Arsenalna English speaking staff: yes www.ilmolino.com.ua
ÆIl Molino’s kitchen is supervised by Franco Pisciottano, a native of New Haven, Connecticut hooks in the bathroom – apparently a rare find in many Kyiv eateries. They don’t take reservations – it’s a pizzeria, not a Michelin star restaurant – and have a takeout menu so you could watch your pizza being made as you salivate. But leave your Mirovaya discount card at home, this place is a part of its own chain separate from the mid-scale restaurant group’s eateries. Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com
26 Paparazzi
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March 4, 2011
Pancake week with celebrities
Singers Borysenko brothers ask their grandmother for help with pancakes.
Singer Mila Nitich
Æ
Dancer Serhiy Kostetsky (R), enjoys pancakes with mushrooms.
Ukrainian celebrities marked the first day of spring with a pancake cooking class in restaurant Panorama. On March 1, 20 stars shared their family recipes for this traditional dish of Maslyana, or the Pancake week. The holiday originated in pagan times when people were bidding farewell to winter by eating round shaped cakes – the symbol of the sun. The Christian church later on adopted the custom to encourage people to eat plenty of dairy, eggs and meat during the last week before Lent. Celebrities cooked pancakes with fillings for all tastes, from honey and apple to smoked salmon and caviar. (Oleksiy Boyko)
Singer Milosskaya (R)
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March 4, 2011
Community Bulletin Board 27
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 – 4 listings
classes. We invite you to weekly services at 10.30 a.m. Saturdays at 13A Miropolskaya St. (metro Chernigovskaya, second stop by a tram Boichenka. Central entrance of two-story building). Telephone: 38-093-757-6848, 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 (4th floor). Worship begins at 11 a.m. Sunday school for adults begins at 9:45 a.m. Pastor Ivan Bespalov: tel. (044) 287-0815; (097) 317-9598; e-mail: ivanbespalov@gmail.com.
Î The Business-English Center meets on Sundays at 3 p.m. for a series of business English skills workshops. For more information, call Alex at 234-0871 or email: e-club@i.com.ua or visit www.etcentre.com.ua. Î A new gentlemen’s club is always open for well-educated, successful members (free admission) to combine establishing business relationships with unconstrained socializing. Please 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 is by invitation only and is open to individuals and companies. Please email: 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 2219595, or register online at www.bold.com.ua.
Public speaking – 6 listings
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, or kievIBC@gmail.com. Î International Christian Assembly meets at 57 Holosiyivska St. Services are held every Sunday: 9 a.m. till 11:30 a.m. For further information contact: Paul, +050-382-2782, www.icakiev.com
Support groups – 5 listings Î Divorce mediation, commercial mediation, consulting on diagnostics of conflict resolution in organization. Ukrainian Mediation Center, www.ukrmedation.com.ua Please contact Oksana Kondratyuk: 066-758-66-44, 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 Saturday/Sunday at 12.30 p.m. and Tuesday/Thursday at 7 p.m. at various locations. Contacts: aakyiv@ukr.net, 096-460-0137 (friend of Bill) for details of meeting location. Î Counseling/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). See www.hohel.kiev.ua or call 050-595-3686 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, 050-573-5810, between 10 a.m. and 6 p.m., or e-mail: kornyeyeva@rambler.ru.
Social, sport and health clubs – 2 listings Î TRAVEL CLUB KIEV meets at metro Lva Tolstogo at 3 p.m. on Saturdays to discuss travel stories and explore new destinations with each other. Meet new people and share your stories. Join us, it’s free! For more information: 063 351- 6147, Olga. Î Volleyball group, expats and locals, seeks new players, male or female. Skill levels, advanced beginner to intermediate. We meet on Sundays, 11 a.m., near Livoberezhna metro. For more info, send email to vbkiev@gmail.com Î Dnipro Hills Toastmasters Club would like to invite successoriented 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 Lesya Ukrainky Street, metro station Pecherska. For detailed information, please, check our website www.dniprohills.org.ua
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 the website at http://hashhouseharriers.kiev.ua/
International clubs – 10 listings
Î EBA Toastmasters Club invites 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 more information, contact Svetlana Nesterenko at lana_ svk@ukr.net or call 067 220 77 55. More information can also be found at: www.ebatmc.blogspot.com.
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 see www.toastcrackers.kiev.ua. Î Talkers Toastmasters Club 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 website at arttalkers.wordpress. com, call 096-565-6229 or e-mail: arttalkers@gmail.com
Religion – 8 listings
Î International Church, Kyiv. English and Spanish Bible study
Î Free English speaking club A@5! Improve your English speaking skills and have fun. Be prepared to speak in English most of the time with native speakers. Conversational clubs and thematic discussions on Saturdays and Sundays. For more information, please contact Vadym at vadik_s@ukr.net or +066 767-4407 Î English-Russian Conversation Club for adults. People of different ages are invited for international meetings. Mini-groups, individual approach. Making new friends. Conversational trainings. Email: 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 pre-school and English club starting coming September. For more details please call ASAP: Natalie Istomina: +067 501-0406, +093 798-9840. Î Wave Language School offers free English speaking clubs to the public. Join us on weekends from 4 p.m. to 6 p.m. or 7 p.m. to 9 p.m. on Saturdays and 1 p.m.– 3 p.m. or 4 p.m. to 6 p.m. 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/, 229-2838. 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. to 7:30 p.m., Sat noon until 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 years old. 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 at jmt260@hotmail.com for more information. Î Free speaking English club in Irpen on Saturdays at Lan School. Call 093-623-3071. 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 or call 066-767-4407. Î Free international conversation club on Fridays at 7 p.m. at English Language Center. Interesting topics for discussion, studying the Bible sometimes. Join us at 4B Kutuzova lane office No. 106 (m. Pecherska) and 76 Irpenska, office No. 31 (m. Akademgorodok. The ELC LTD. Tel. 5811989, 229-28-38. http:// english.in.ua
People in need - 7 listings
Î Free admission for foreigners to “Russian Speaking Club” on Saturdays, 15.00 in Kiev city center. Call Yana (095897 01 55) to ask for details or go to www.russianclub.com.ua Î Stolypin Club (Kiev) meets every third Wednesday of every month at 7 p.m. at various locations. It is a non-profit public organization uniting Kyiv’s citizenry, including prominent business representatives, politicians and the liberal professions. The club is private, but opens its doors and its spirit to the wider community, affording the public a chance to partake in certain events alongside club members and guests. Please contact Tamara Avdeyeva at 096-462-4646 or assistant@stolypinclub.org. Î Welcome to the friendly atmosphere of a French-speaking 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 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 067-296-5672 or n_radov@yahoo.com.
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 235-4503 or 235-6980.
English clubs – 13 listings Î Cambridge graduate leads free conversations in British English most Sunday mornings in downtown Kyiv venue. GMAT my speciality, but discussion of a wide range of cultural and commercial issues is encouraged Michael_Bedwell@hotmail.com
Î Free English/German conversation club on Sundays. Druzhbi Narodiv 18/7, office No. 3. Everyone is welcome. Tel: 529-75-77.
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 society, youth leadership development, intercultural dialogue. To learn more please e-mail us at studentembassy@gmail.com or visit: http:// studentembassy.org.ua.
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, a five-minute walk from Khreshchatyk. Bible study on Tuesdays at 7.30 p.m. Please call Graham at 098-7794457 for more information, www.acny.org.uk/8592.
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 044-531-9193 or paul.niland@primerosfunds.com.
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 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 St. at 7 p.m. Please check our website www.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 for membership, Anton Stetsenko at 093-609-5161.
and further information please consult our website at: http:// kmrclub.org.
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 Galina Timoshenko at 234-3180, office@iwck.org. Address: 39 Pushkinska, #51, entrance 5, door code 250. Î The Rotaract Club Kyiv meets on Thursdays at 7 p.m. at the Ukrainian Educational Center, Prospect Peremohy,#30, apt. 82. For more information, please email: president@rotaract-kyiv.org. ua or visit our website www.rotaract-kyiv.org.ua. 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 St. 22. For a map
Î Twenty-one year old Zhenia Anhel was diagnosed with myelomonocytic leukemia in early January. He is currently treated in the Hematology Department of the Kyiv City Hospital going through the first stage of chemotherapy. Zhenia’s relatives contacted several hospitals in Germany, Poland and Israel in hope to continue therapy abroad. The family needs to raise 100,000 euro for the therapy itself and another 150,000 for the bone marrow transplant. The Anhel family pleads for your support and is thankful for any contribution, however small. Contacts: Olena Betliy, Teacher, +38 095 137 7743, history.ukma@ gmail.com ; Egor Stadnyi, Student Committee Head, +38 096 905 5743, estadniy@gmail.com ; Iryna Ivanivna Yurechko, Deanery coordinator, (+38 044) 425-14-20; iriv@ukma.kiev.ua . Website: http://www.helpangel.com.ua/ Bank details for individuals: PrivatBank card: 4627087834471890. Account number (Hryvnya): 4149 6050 5082 6437 Account number(EUR): 5457 0820 5027 5655 Bank details for legal bodies (Hryvnya): Recipient: Privatbank Bank name: PrivatBank Account number: 29244825509100 МФО code: 305299 ЄДРПОУ Code: 14360570 Details of payment: charitable contribution to Anhel Mariya Mykolaivna for medical treatment of her son, Anhel Yevhen # 4627087834471890 Tax ID 1915922443 Bank details for legal bodies (USD): BENEFICIARY: Anhel Mariya Mykolaivna Relief Fund for her son Evhen ACCOUNT: # 26258614433539 BANK OF BENEFICIARY: PrivatBank Dnipropetrovs’k, Ukraine Swift code: pbanua2x INTERMEDIARY BANK: jp morgan chase bank Chase metrotech center, 7th floor Brooklyn NY, 11245 USA CORRESPONDENT swift code: chasus33 ACCOUNT: 0011000080 Bank details for legal bodies (EURO): BENEFICIARY: Anhel Mariya Mykolaivna Relief Fund for her son Evhen ACCOUNT: # 26258614433443 BANK OF BENEFICIARY: PrivatBank Dnipropetrovs’k, Ukraine Swift code: pbanua2x INTERMEDIARY BANK: jp morgan AG Frankfurt/main, Germany Swift code: chasdefx CORRESPONDENT ACCOUNT: 6231605145 Î Katyusha Larionova is only 4 years old. At the age of 1,9 she was diagnosed with neuroblastoma, 4th stage. Since that time her parents has been fighting for her life. She had been treated in Ukraine without success. Due support of many responsive people Katyusha had a complex surgery, chemotherapy, radiation and bone marrow transplantation in Singapore, and finally went into a remission stage.
For 1,5 year Katyusha lived as a normal child, studied at development school. But in January 2011 metastases appeared in skull bones. Katyusha’s doctor in Singapore recommended a course of complex therapy, including chemotherapy, MIBG therapy, antibodies and repeated marrow ransplantation. To start the therapy is necessary as soon as possible. The cost of it is 87 thousand pounds sterling. Katyusha’s parents hope people help them to save their daughter. Details on Katyusha's condition you can find at: http://katyalariohelp.ucoz.ru/ , or http://www.donor.org.ua/index.php?module= help&act=show&c=1&id=746 Contacts: Larionov Dmitriy, father, +050 501- 9566, Larionova Alina, mother, +050 621-1207, e-mail:desk@list.ru Or donate in Hryvnia: Privat Bank Account #29244825509100 МФО: 305299 Code: 14360570 Details of payment: replenishment of the card # 4149625301417414 Receiver: Larionova Alina Vladimirovna 2926510426 Î Nastya Kotova, 15, has been diagnosed with acute leukemia. She had a successful bone marrow transplant in Israel two months ago. Nastya is in a relatively stable condition now for the first time in many months. A step away from recovery, she still has to go through a rehabilitation period. The Kotov family urgently needs $12,000 to continue the treatment. Please help save their daughter’s life. More information: http://www.donor.org.ua/index.php?mod ule=help&act=show&c=1&id=1170 http://fonddarina.com/ru/child/nastyakotova?news#72 Contact Nastya’s volunteer, Iryna: 096-373-89-71. Bank details: Beneficiary: Kotova Olena Vasylivna (Nastya’s mother) Deposit money on a banking account: # 4405885014676768 PrivatBank Account #: 29244825509100 MFO: 305299 Code: 14360570 Î Maksym Nalivkin, 12 years old, needs your help. The boy had suffered from cerebral haemorrhage and further subarachnoid hemorrhage, which led to 3 brain surgeries and constant artificial pulmonary ventilation. Since March 2010 the boy has been held at the resuscitation department, for 2 months he’s been out of coma, there are slight positive changes that give hope. He still needs a long-term rehabilitation; however his family already spent their savings on treatment. In case you have any possibility to support them, Maksym’s family would much appreci-
ate it. Contacts: Mother Elena Nalivkina - mob.tel.: +380 99 625-2475 Father Arkadiy Nalivkin - mob.tel: +380 50318-5499; tel: +380 552 22-2806; email: nag.box@gmail.com; skype: arkady_g.nalivkin; ICQ: 8423832 Webpage: http://nag.pp.net.ua/ Bank details for hryvnia transfer: Bank: Черноморское отделение Херсонского филиала «Приватбанк» МФО Code: 305299 ОКПО Code: 14360570 Account: 29244825509100 Purpose of payment: 4627085825848787, Nalivkina Elena Nikolaevna, ИНН: 2596602804 Multicurrency account (U.S. dollar, euro): BENEFICIARY: NALIVKIN ARKADYY, Kherson, Ukraine ACCOUNT: 2620001696644 BANK NAME: JOIN STOCK COMPANY "THE STATE EXPORT-IMORT BANK OF UKRAINE" (UKREXIMBANK), KHERSON BRANCH SWIFT: EXBSUAUXKHE BANK ADDRESS: 46, RADIANS'KA STR., KHERSON Maksym’s family also appeals for advice - any useful contacts of rehabilitation professionals, recovery programs, as well as charity organizations or grant programs for such cases. Î Two-year-old Vanya Chornozub from Kherson Oblast has brain cancer. Since no clinic in Ukraine was able to cure him, he has been transferred to Germany for further treatment. Due to the efforts of many people, two years of therapy brought very good results. Vanya is getting better. But his parents are very short of money to pay for further treatment. His parents appeal to anyone who can help support Vanya’s treatment. Contact person: volunteer Olga Kopylova: +380-67-234-1225 Webpage www.donor.org.ua/index.php?module=help&act=sho w&c=1&id=870 Details for money transfers: PrivatBank Account: 29244825509100 Bank branch location code: 305299 Code: 14360570 Details of payment: card replenishment: 4405885012914724, Chornozub À.À., support for son’s treatment 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/) Î The Down Syndrome Ukrainian Organisation 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 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
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March 4, 2011
Dancers Valeria Maside and Anibal Lautaro
Russian bandoneonist Ivan Talanin (L) and violinist Aleksandr Ryazanov of Solo Tango Orquestra
Dancer Valeria Maside plays a woman missing her lover in this tango composition.
Æ
Tango magic in Kyiv
Dancers Valeria Maside and Anibal Lautaro from South America gave a two-hour sensual tango concert on Feb. 25 in Kyiv’s Budynok Ofitseriv. For each dance, they wore a special costume. Five-member Russian Solo Tango Orquestra accompanied the dancers. By tradition, the name “orquestra” is granted to any band playing tango music regardless of the number of musicians. Musicians played many pieces by Astor Piazzolla, the famed Argentinean tango composer whose 90th anniversary is marked this year. From 2009, Argentinean tango is included in UNESCO list of the Intangible Cultural Heritage of Humanity. (Joseph Sywenkyj)
www.kyivpost.com
Lifestyle 29
March 4, 2011
What it takes to get published in Ukraine BY N ATA L I A A . F E D US C HAK FEDUSCHAK@KYIVPOST.COM
Ukrainian writer Mila Ivantsova doesn’t give up easily. In 2002, the teacher of foreign languages published her first book, a compilation of poetry and prose. That was followed by another tome. Then, a surprising thing happened: Ivantsova, who primarily writes in Russian, won an honorable mention in 2009 for her Ukrainian-language novel, “Rodovy Vidminok,” in the renowned “Coronation of Word” literary competition. The recognition changed everything. Ivantsova has written another book in Ukrainian and her works have been singled out by the BBC literary competition. While her success puts Ivantsova in the higher echelon of the country’s literary scene, her creative journey also underscores the amount of effort it takes to become a Ukrainian writer in Ukraine today. Not only are homegrown writers having to find new ways to shine in a domestic market dominated by Russian imports, Ukrainian publishers are increasingly being squeezed by authorities who see little value in their product. “Ukraine had repressed literature,” said Eleanora Simonova, director of Nora Druk, Ivantsova’s publisher. “This is a branch that exists without any help.” Ukrainian-language writers and publishers have always had to struggle in their homeland, due in part to Soviet policies that led to widespread Russification. The country’s economic downturn, however, has played its part. While bookstores like “Ye” chain have
made a concerted effort to promote Ukrainian-language writers, the government hasn’t purchased books from publishers for libraries for more than three years, Simonova said. Making matters worse, Ukrainian language publishers still do not enjoy the kind of tax breaks their Russian counterparts have, which has spurred development of that country’s book industry. A much-discussed topic, it remains uncertain if Ukraine’s current government will do anything to ease tax burdens. Now, after a period of expansion, some publishers are on the brink of returning to a time when they undertook bus tours, particularly to the country’s primarily Russian-speaking eastern regions and smaller towns, to ensure Ukrainian-language literature gets into the hands of readers, Simonova said. Many of them, however, are concerned about the larger political question of how the government and its ruling Party of Regions view the Ukrainian language as such. By many accounts, Ukrainian has taken on a secondary status since President Viktor Yanukovych took office last year. Writers are so upset that, on Feb. 21, when the nation commemorated Native Language Day, 70 leading writers penned an open letter claiming the country is being divided by the “provocative, aggressive, Ukrainian-phobia politics of the government.” Paradoxically, despite the challenges, more Ukrainian writers are finding greater creative outlets and recognition than before. The Kyivbased Korrespondent magazine now
The lack of government spending on Ukrainian-language books for libraries as well as Russian-language imports stifle development of the nation’s official language. (Joseph Sywenkyj)
highlights the best books of the year while the BBC’s Ukrainian service has launched its own best books project. Publishing houses are finding new talent and according to many writers, some of the best literary work in the former Soviet space is coming out of Ukraine. Undoubtedly, “Coronation of Word” literary competition has been a driver in finding new talent. Now in its 10th year, the contest is an opportunity for Ukrainian-language writers to get unbiased assessments of their work, while publishing houses can discover new writers. Since its inception, the competition has resulted in the discovery of 225
new writers, 110 books published, seven films and eight plays. The new literary voices it has birthed include Liuko Dashvar, now one of Ukraine’s bestselling writers, Larissa Denisenko, Iren Rozdobudko and Andriy Kokotiuha. The contest was established in 1999 by George Logush, an American of Ukrainian descent who is Kraft Foods’ vice president for Ukraine, Eastern Europe and Central Asia. Logush said the idea for the competition came after he got tired of walking through Ukrainian bookstores in the 1990s and finding nothing new on their shelves. “Potential writers had nowhere to be published,” Logush said. Because the competition is open to
works submitted only in the Ukrainian language, it is also an impetus for people like Ivantsova to take the leap and try to express themselves in Ukrainian. It is a more difficult process psychologically than one might imagine. “I consciously turned to Ukrainian,” said Ivantsova. “I didn’t think I could give the [same] quality in Ukrainian…I had a fight with myself.” Her effort, however, has paid off. “Rodovy Vidminok” was named as one of the best 20 books in 2010 by Korrespondent. Her latest creation, “Vitrazhi,” a novel which involves the French writer Francoise Sagan, was also up for one of the best books last year by the BBC. Even as they struggle at home, a major question facing writers and publishers alike is, can Ukrainian writers break onto the international stage. Writers from India, Egypt and Latin America have had a huge following internationally, and publishers believe Ukrainian-language writers can join those ranks. Some, notably Andrey Kurkov and Oksana Zabuzhko, are already enjoying success abroad. Logush said he is sure Ukraine has “world-class” writers just waiting to be discovered. Simonova said publishing houses are now joining forces so the Ukrainian voice – often seen as exotic to the outer world – can be heard abroad. “We want to be closer to Europe,” Simonova said. “Ukrainian culture and history has existed thousands of years. It needs to be renewed.” Kyiv Post staff writer Natalia A. Feduschak can be reached at feduschak@ kyivpost.com.
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BUSINESS DEVELOPMENT DIRECTOR Key responsibilities Development of business strategу for the Firm Management of Business Development Department in the territory of Ukraine, the Russian Federation, Kazakhstan, the UK Bringing new clients A successful candidate is/has Experienced in structuring and management of Business Development Department Experienced in B2B sales (more than 5 years) Excellent communication skills Successful experience in personal sales and business negotiations (including international negotiations) Pro-active attitude to life Fluent English The best candidate is offered An opportunity to fulfil his/her potential and professional ambitions Work in a team of professionals For additional information about the Firm please refer to our web-site: www.integrites.com tel.: +38(044) 391-3853 fax.: +38(044) 391-3854 Please submit your resume to: hr@integrites.com
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VACANCY ANNOUNCEMENT United Nations Development Programme (UNDP) invites applications from highly qualified, energetic, proactive and experienced professionals for the posts of
PROGRAMME ASSOCIATE
Ukraine (GS-6, FTA, UNDP COUNTRY OFFICE, 2 POSTS) Who will be responsible for effective delivery of the CO programme by entering and managing data and supporting programme implementation consistent with UNDP rules and regulations and will work in close collaboration with the operations, programme and projects’ staff in the CO, UN Agencies, and UNDP HQs, national counterparts, international and local consultants and research companies as required for resolving complex management and programme-related issues and exchange of information. DEADLINE FOR APPLICATIONS IS 10/03/2011
For detailed job descriptions and application for these and other vacancies please visit http://undp.org.ua/jobs, complete the UN PERSONAL HISTORY FORM* (P-11) and attach it to the on-line application.
UNDP Office in Ukraine, Klovskiy uzviz, Kiev 01021
Kyivpost.ua
THE SUCCESSFUL CANDIDATE MUST: Be knowledgeable about a wide range of spectator and participatory sports popular to Ukrainians; Be willing to get exclusive interviews on a regular basis; Have experience working for online news sites; Have fluency in Ukrainian, Russian and English languages.
IS LOOKING FOR A
SPORTS EDITOR FOR ITS ONLINE UKRAINIAN/ RUSSIAN LANGUAGE VERSION
Please send CV, three writing samples, three story ideas and an explanation of why you want to work for the Kyiv Post, one of Ukraine’s top news sources, to: Brian Bonner, chief editor, Kyiv Post at
bonner@kyivpost.com
Programme Manager� or “CB Programme Assistant� in the subject line. The selected applicants will be contacted and invited for interviews to be held in Kyiv in April. The Council of Europe Programme “Strengthening the capacity of local authorities in Ukraine� is designed to support implementation of the Council Of Europe Action Plan for Ukraine, and to complement the existing legal assistance Programme to Strengthen Local Democracy in Ukraine. The duration is April 2011-March
PROGRAMME MANAGER
Responsibilities: co-ordinate the implementation of the Programme, assess regularly the implementation modalities and advise on suitable adjustment whenever appropriate; monitor developments and trends of the decentralisation process in Ukraine to identify opportunities and risks which may hamper the effective implementation of the Programme and advise on suitable action/corrective measures organise, lead on and participate in conferences, seminars, workshops, roundtables and working groups; maintain regular contacts with key stakeholders, including participating municipalities, associations of local authorities, Ministry of Regional Development, Academy of Municipal Administration, etc; maintain regular contacts with the SDC, GTZ, EU, UNDP, and other international agencies active in the field of local government; liaise with the Association of Municipalities, domestic NGOs and other local partners which may contribute to the implementation of the Programme; coordinate the administrative, financial and technical implementation of the Programme; maintain regular contacts with the donors and ensure a regular information flow on activities organised and progress in Programme implementation; organise and participate in the meetings of the Programme Steering Committee; prepare an Inception Report, Interim Reports, and the Final Report in co-ordination with the Strasbourg office. Requirements: thorough understanding of local-government issues; knowledge of the existing Ukrainian system of local self-government and awareness of the Council of Europe principles and standards for local democracy; awareness of the current political context in Ukraine and knowledge of political, economic, social and cultural matters; analytical and problem-solving skills; ability to network, build and maintain partnerships; understanding of budgetary and financial administration; planning and work organisation capacity; ability to work rapidly under pressure; ability to search for information; sense of initiative and responsibility; concern for results; strong negotiation and communication skills; service and client orientation; teamwork. Qualifications: University degree in public administration, political science, other relevant area; At least 8 years of relevant professional experience, in particular, in project and programme management, and capacity-building; professional experience in working with international organisations would be an advantage. Languages: native or native-level Ukrainian; very good knowledge of spoken and written English; knowledge of French would be an advantage.
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Candidates should submit resumes and cover letters in English to: office@finrep.kiev.ua by March 14, 2011. Only applicants selected for interviews will be contacted. No telephone inquiries will be accepted.
PROGRAMME ASSISTANT
Responsibilities: assists the Programme Manager in organising the implementation activities, in particular in organising missions, conferences, roundtables, and workshops; drafts and formats standard correspondence, memos, files and presentations in accordance with instructions; organises files; re-reads and makes grammatical corrections of texts; checks translations; works with translation and interpretation services; carries out the practical organisation of meetings; makes travel and accommodation arrangements, assists in the reimbursement of travel expenses in accordance with procedures; verifies costs of missions; seeks, collects, and distributes information; keeps documents, files, data bases, documentation accurate and up-to-date; prepares production and distribution of documents; enters data and processes purchasing orders; classifies files, catalogues and indexes documentation; acts as liaison between external/internal contacts; reports to the supervisor(s) on progress and if and when problems occur; maintains contacts with counterparts in other international organisations. Requirements and Qualifications: experience of administrative work; experience of work with international organisations and projects, preferably in the area of local self-government; understanding of relevant Council of Europe’s procedures and activities; good computer skills, knowledge of standard tools in office applications (word processing, spreadsheet, data bases, presentation software, outlook, internet/intranet publications); planning and work organisation; information seeking; problem-solving skills; excellent listening, writing, and communication skills. service and client orientation; team-work and co-operation; relationship-building. Languages: Ukrainian native speaker; professional knowledge of English; knowledge of French would be an advantage.
Business development MINI
Specifications:
The Programme will be co-funded by the Government of Denmark and the Swiss Cooperation Agency, and implemented by the CoE Department of Local and Regional Democracy and Good Governance (direct management by the Centre of Expertise for Local Government Reform). The local office activities will be coordinated by the Head of the CoE Office in Kyiv.
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S E C R E TA R Y RECEPTIONIST
- Support to the implementation of the Strategy for Innovation and Good Governance at Local Level - Public Ethics Benchmarking (follow-up) - Performance Management (to improve the quality of public services) - Best Practice (identifying, celebrating and disseminating the best local initiatives and achievements) - Local Finance Benchmarking (to help local authorities understand their strengths and weaknesses and improve practice) - Leadership Academy (to help senior local government officials improve the quality of their institutional leadership).
The Council of Europe is seeking candidates for two positions to be located in Kyiv. The qualified candidates are invited to e-mail a cover letter and a CV in English to DGDAP_cb.ukraine@coe.int by 18 March 2011 in a reference “CB
2014. The Programme will strengthen the institutional capacity of local authorities to deal with their tasks, and will include the following projects based on complex resultoriented tools developed by the Centre of Expertise( www.coe.int/local click Centre of Expertise, then Tools):
USAID Financial Sector Development Project is seeking qualified candidates immediately for the open, full-time position of
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The
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IS LOOKING FOR A
One of Ukraine's top news sources, has an ongoing student internship program. We have openings for students who are:
NEWS EDITOR THE IDEAL CANDIDATE SHOULD: Have fluency in English, Ukrainian and Russian. Show good news judgment and have the ability to work quickly under deadline. Have experience in news editing. Please send CV, three writing or editing samples and an explanation of why you want to work for the Kyiv Post, one of Ukraine’s top news sources, to:
Brian Bonner, chief editor, Kyiv Post at bonner@kyivpost.com
Employment/Education 31
majoring in journalism or mass communications or studying to become translators
To be considered, please send CV to Brian Bonner, chief editor, Kyiv Post at bonner@kyivpost.com
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www.kyivpost.com
March 4, 2011
Scandal at Eurovision Æ19 Mika is the best. There is no need to test!” The singer wore a white dress decorated with fur to perform her song “Angels.” Five male dancers dressed as angels were dancing behind her with mirrors on wheels. After the results were announced Mika Newton was crying with happiness while sad Jamala ran to the dressing room refusing to comment. Zlata said she knew everything would end this way. Of the panel judges, Jamala was supported by two previous Ukrainian Eurovision contestants, Eurovision 2004 winner Ruslana and Ani Lorak, who represented Ukraine in 2008. Ruslana and Ani Lorak as jury members awarded Jamala the maximum 10 points. Ruslana gave another 10 points to Zlata. But both singers gave Newton a much lower score, just eight points. “Mika Newton is an angel in real life, but my sympathies were with other candidates,” said Herman who also gave fewer points to Newton. “I liked singers Jamala and Anastasiya Prikhodko. They showed strong and energetic characters. These girls could have been noticed in Europe, especially Jamala.” However, the opinions of other jury members varied. Ukraine’s influential lawmaker and accordion player Yan Tabachnyk, music producer Eduard Klim, First National Channel general director Yegor Benkendorf and the channel’s vice president Walid Arfush gave more points to Newton. The vote tallies of all jury members, which counted for 45 percent of the total, ended up placing Newton first, Ognevich second and Jamala in third. There was only a two-point difference between first and third. Internet voting, which gave 10 percent of the final score, was also relatively tight. The final 45 percent was made up of SMS votes, which Newton also won. But a suspicious statistic emerged: Jamala would have won the runoff if only unique Internet and SMS votes – those sent from one IP-address or cellphone – had been tabulated. She received 7,104 unique Internet votes and 6,365 unique SMS votes, compared to 2,640 and 1,996 for Newton. Newton supporters, it turns out, have quick fingers and deep pockets.
Singer Jamala (L) takes third place despite being a hot favorite for months. (Kyiv Post photo)
The final numbers suggest that her supporters have spent more than Hr 50 to vote for her multiple times. That’s not a fortune, but a hefty expense in these tough economic times for an average Ukrainian. In providing for unlimited SMS and Internet voting, critics say the rules of Eurovision contestant competition selection allow for contests with the deepest pockets to win. Results of the contest triggered a sea of complaints on the Internet website hosting the runoff. One read: “It’s time to stop treating us like fools!” More than 5,000 people left their signatures on an Internet petition to the First National Channel and demanded a revote where only one SMS or Internet vote could be cast by each person. Amid the pressure, the channel announced a runoff between the top
three, but Jamala and Zlata refused to take part. “I don’t have faith in the people who will organize and control the voting,” explained Jamala in an open letter published on her website. “I am pretty sure that people who are trying to organize [the revote] will do everything possible to prove their case again and to degrade me and other singers again.” Zlata refused because of a serious leg injury that she announced on her web site. So the channel announced Newton the winner, saying it had re-tabulated results according to “international standards,” where each number can vote a maximum of 20 times, and she had still come out on top. She’ll now represent Ukraine at the final in Dusseldorf, Germany on May 10-14. Kyiv Post staff writer Oksana Faryna can be reached at faryna@kyivpost.com
Singer Zlata Ognevich finishes second during the national Eurovision song contest on Feb. 26. (Kyiv Post photo)