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Solidarity with Japan As the 25th anniversary of the Chornobyl disaster rvivapproaches, survivcall ing workers recall d the tragedy and empathize with those in Japan n trying to contain radioactivity at the damaged Fukushima Dai-ichi nuclear power plant.
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Æ12-14 www.kyivpost.com
vol. 16, issue 11
March 18, 2011
Big And Broke? B Y M A R K R AC H K E V Y C H RACHKEVYCH@KYIVPOST.COM
As Ukraine’s richest businessmen rise up local and international rich lists, their companies, strangely, appear to be heading in the opposite direction. The nation’s flagship metallurgy sector, for example – which accounts for nearly half of the nation’s exports – is still financially in the red, official figures show. Although higher prices on Russian natural gas imports have hit margins sharply, critics say the losses are largely a grand deception. Many companies underreport their income in Ukraine in order to pay less tax, transferring profits offshore in often complicated ways that deprive the country’s budget ofÆ10
Molten steel in a blast furnace lights the Converter Shop at the Ilyich Metallurgical Plant in Mariupol, a port city on the coast of the Azov Sea in southeastern Ukraine. (Joseph Sywenkyj)
Japan tragedy revives nuclear power debate BY P E T E R B Y R N E BYRNE@KYIVPOST.COM
As Japan struggles to contain the worst nuclear power disaster since Ukraine’s Chornobyl in 1986, debate over the safety of the energy source is flaring again. The renewed focus is coming amid a renaissance of the nuclear power industry in Ukraine and in many nations of the world – even, perhaps,
Inside:
in Belarus, which absorbed 70 percent of the radioactive fallout from the accident. Russia is a leader of the nuclear power revival, providing billion-dollar loans to its impoverished neighbors in a push led by Russian Prime Minister Vladimir Putin. Rosatom, the state-run nuclear power company, claims 16 percent of the world’s nuclear power construction market. The govern- Æ13
News Æ 2, 11 – 15 Opinion Æ 4, 5, 15 – 17
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INSIDE: • Top 10 stories of the week on www.kyivpost.com and www.kyivpost.ua. Page 2. • Suspected abduction of Palestinian in Ukraine by Israel intelligence agents. Page 2. • Kyiv bans sale of tobacco, alcohol from street kiosks starting April 1. Page 11.
Ukrtelecom message: Closed to investment? BY V LA D LAV R OV LAVROV@KYIVPOST.COM
President Viktor Yanukovych’s commitment to holding transparent privatizations is being challenged anew after government sold one of its remaining gems – the nation’s fixed-line telephone monopoly – in a deal derided as uncompetitive. “We sold the last state asset that
could have potentially attracted a major strategic investor in a blatantly non-transparent way,” said Oleksandr Bondar, a lawmaker and former head of Ukraine’s state privatization agency, of the government’s sale of Ukrtelecom this month. If these types of sales continue, Bondar said, the nation has no hope of attracting much needed foreign investment. “No matter what is put up Æ9
Business Æ 6 – 10
Employment/Real Estate/ Lifestyle Æ 19 – 30, 32 Classifieds Æ 30, 31
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11
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MARCH 18, 2011
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March 18, 2011
Vol. 16, Issue 11 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
Palestinian taken from train?
expressed in the Kyiv Post are not necessarily
BY OKS AN A GRYTSENKO AN D VLAD LAV ROV
the views of the publisher nor does the publisher
GRYTSENKO@KYIVPOST.COM,
by Ukrainian and international laws. The views
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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 Реєстрацiйне свiдоцтво
Ukraine’s authorities said this week that they don’t know how a Palestinian engineer disappeared from a KharkivKyiv train in mid-February before ending up in an Israeli jail one day later. The disappearance of Dirar Abu Sisi, a manager at a power plant in Gaza, has raised questions about whether the Ukrainian authorities knew or were involved in what his Ukrainian wife claims was an Israel secret-service operation. A United Nations official expressed concern about the disappearance, which Israeli authorities have refused to comment on, and Ukrainian officials say is under investigation. “We are very disturbed that a person, according to his relatives, disappeared
in Ukraine and after a very short interval appeared in a completely different country,” said Maksym Butkevych, a spokesman for the Ukraine office of the United Nations High Commissioner for Refugees. According to Butkevych and Abu Sisi’s wife Veronika, the Palestinian is now being held in Ashkelon prison in Israel. It is unclear why he is being detained, as the case is subject to a gag order in Israel. According to his wife, Abu Sisi disappeared after visiting Kharkiv to submit documents as part of an application for a residency permit in Ukraine. She told the Kyiv Post that the conductor in his carriage had said Abu Sisi was taken from an overnight train from Kharkiv to Kyiv when it reached Poltava at around 1 a.m. on Feb. 19 by two unknown men. The train’s chief, Oleksandr Kaldanov,
told the Kyiv Post that he had been on the train, but had left the train at the first stop. Veronika Abu Sisi said she believed he had been abducted by Israeli special services who wanted to cripple the work over the power plant where he was employed. The Palestinian diaspora in Ukraine send a letter to President Viktor Yanukovych on March 4 asking him to help in the search for Abu Sisi. They received a reply that the matter was under investigation. Ukrainian officials have declined to comment on the incident, although Prime Minister Mykola Azarov, on a visit to Israel, told local newspaper Haaretz on March 17 that he doesn’t want “to imagine that such things are carried out on the soil of a friendly state.” Questions have been raised as to what role Ukrainian authorities could
have played in the disappearance, or whether they even new that it had taken place. “We really hope that we’ll receive an answer to our inquiry with information about what happened,” said UNHCR’s Butkevych. The possibility of foreign secret services being involved was not ruled out by lawmaker Hennadiy Moskal, a former Interior Ministry general. “Foreign security services feel better in Ukraine than at home. There’s no countering of their activities on the territory of Ukraine from the security services or counterespionage,” he said. Ukraine’s Security Service, known as the SBU, declined to comment on Abu Sisi’s disappearance. Kyiv Post staff writer Oksana Grytsenko can be reached at grytsenko@kyivpost. com and Vlad Lavrov can be reached at lavrov@kyivpost.com
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Kyiv Post Ірина Фаріон, скандально відома член ультраправої партії “Свобода”, відвідуючи середню школу у Львові, закликала не забувати імператив Тараса Шевченка “і вражою злою кров’ю волю окропіте”. Вона сказала дітям під час візиту до середньої школи №91 15 лютого, що саме це є найголовнішим у заповіті Шевченка.
Фаріон сказала, що однією з причин її візиту до школи стало бажання нагородити школярок-авторів плакату, який нещодавно брав участь у виставці плакатів про мову у приміщенні Львівської обласної ради. Своє особливе захоплення Ірина Фаріон висловила через “геніальну сентенцію” - “Якщо ти українець, тобі потрібна українська мова. Якщо ні – їдь додому”...
Sepulcri Hierosolymitani), який було засновано Святим Престолом. Відповідно до звіту кінця 2008 року, орден налічував більш ніж 25 тисяч "лицарів". Замість того Азаров 15 березня під час візиту в Ізраїль удостоївся найвищої нагороди Єрусалимської православної церкви — Ордену Святогробського братства...
Прес-служба Кабміну переплутала, лицарем чого став Азаров
Мария Шамота Ситуация с трудоустройством в Украине остается неутешительной: с середины прошлого года количество претендентов на одно рабочее место неуклонно растет. В то же время, потребность предприятий в сотрудниках — сокращается. Наилучшая ситуация с трудоустройством была в Украине в августе прошлого года. Тогда, по данным Госкомстата, на одно рабочее место претендовало меньше 5 человек. С тех пор цифра значительно выросла. Уже в начале этого года на одно рабочее место претендуют
Kyiv Post Прес-служба Микола Азарова переплутала, лицарем якого ордену став Микола Азаров. Згідно з її повідомленням від 15 березня, прем'єр отримав з рук православного патріарха Орден Святого Гробу Господнього. Насправді Орден Святого Гробу Господнього є католицьким лицарським орденом (лат. Ordo Equestris Sancti
Украинцам все труднее устроиться на работу
Кількість безробітних на кожну вакансію зростає. более 8 граждан. Такая ситуация напрямую зависит от потребности предприятий в рабочей силе. Например, в том же августе 2010 года предприятия нуждались в рекордном количестве сотрудников — 87 тысячах человек. С сентября месяца этот показатель неуклонно сокращался и в феврале 2011 года рынок предлагал только 72 тысячи позиций... Полный текст статей и блогов можно прочитать на www.kyivpost.uа
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March 18, 2011 Advertisement
European Business Association News
,EADERS 4ALK Leaders Talk: Gregory Krasnov, CEO Platinum Bank 0LEASE GIVE A BRIEF OVERVIEW OF YOUR OPERA TIONS IN 5KRAINE
4HE FINANCIAL CRISIS HAD A SERIOUS EFFECT ON COMPANIES WORLD WIDE #OULD YOU EXPLAIN HOW THE CRISIS HAS AFFECTED YOUR OPERATIONS IN 5KRAINE
!NTICIPATING THE CRISIS TOWARD THE END OF AND ITS IMPACT ON 5KRAINE THE BANKlS MANAGEMENT TEAM WAS ABLE TO ADAPT RAPIDLY TO THE NEGATIVE ECO NOMIC ENVIRONMENT AND CONTINUE TO GROW THE BUSI #%/ 0LATINUM NESS !S A RESULT DUE TO GOOD RISK MANAGEMENT "ANK 0LATINUM "ANK REMAINS 5KRAINElS MOST PROFITABLE AND BEST CAPITALIZED BANK )N TERMS OF DELIVERING RETURNS TO SHAREHOLDERS 0LATINUM "ANK ACHIEVED A 2/% IN AND 2/% IN 4HIS 0LATINUM "ANK IS ONE OF THE FASTEST GROWING STABILITY WAS RECOGNIZED BY THE AWARD OF A LONG AND LIQUID RETAIL BANKS IN 5KRAINE SERVING TERM INVESTMENT CREDIT RATING OF UA! RANKING IT CLIENTS /UR STRATEGY IS FOCUSED ON THE RAPID AMONG THE MOST RELIABLE BANKS IN 5KRAINE ORGANIC GROWTH AND ACQUISITIONS 0LATINUM "ANK )F YOU COULD MAKE THREE REFORMS TO YOUR IS NOW PRESENT WITH BANK BRANCHES IN EVERY INDUSTRY IN 5KRAINE WHAT WOULD THEY BE MAJOR 5KRAINIAN CITY !ND ITS NETWORK WILL !S FOR BANKING SPHERE THE MOST CRUCIAL ISSUE ENJOY A FURTHER BOOST IN VIA ACQUISITION OF (OME #REDIT "ANK 5KRAINE (OME #REDIT IS RISK MANAGEMENT !DEQUATE RISK EVALUATION "ANK 5KRAINE HAS BRANCHES AND NEARLY IS THE KEY TO SUCCESS 3CORING SYSTEM EFFECTIVE CUSTOMERS WHICH ARE NOW JOINING 0LATINUM WORK OF CREDIT BUREAUS IS WHAT ALL THE BANKS NEED %FFECTIVE RISK MANAGEMENT CAN BE LIKE mA WINDOW "ANK TO !MERICAn FOR THE 5KRAINIAN MARKET 4HE INTEGRAL PART OF OUR BRAND IS SUS )MPORTANT REFORMS SHOULD BE TAKEN IN MINDS TAINABLE DEVELOPMENT BEING CORPORATE SOCIAL OF 5KRAINIANS )T IS ESSENTIAL THAT WE LEARN THE RESPONSIBLE IS IN OUR EVERYDAY ACTIONS %ITHER NOTION p RESPONSIBILITY "EING RESPONSIBLE IN ALL INTRODUCING A NEW PRODUCT OR A BUSINESS WE OUR ACTIONS p WITH PARTNERS FAMILY BANKS p WILL EVALUATE THE RESPONSIBLE FACTOR OF THE INITIATIVE 4HAT IS WHAT WE CALL VALUE ORIENTED MANAGE GREATLY INFLUENCE NOT ONLY BANKING SPHERE BUT THE MENT )N OUR #32 STRATEGY WE ARE TRYING TO WHOLE COUNTRY '2%'/29 +RASNOV
CREATE LOCAL RELATIONS AROUND OUR BRANCHES BY HELPING PEOPLE OPENING COMPUTER CLASSES FOR CHILDREN EDUCATION IN ORPHANAGE /NE OF OUR MOST POPULAR PROGRAMS IS FINANCIAL EDUCATION FOR CHILDREN p MORE THAN CHILDREN HAVE ALREADY LEARNT INTERESTING TIPS ABOUT MONEY VISITING 0LATINUM 0OSIDELKI
4HE OTHER IMPORTANT THING TO HAVE IS BASIC FINANCIAL KNOWLEDGE $UE TO THE RESEARCH TAKEN BY 53!)$ IN ONLY OF GROWN UPS HAVE GOOD OR SATISFACTORY FINANCIAL KNOWLEDGE 0LATINUM "ANK STARTED THIS REFORM IN BY LAUNCHING OF FINANCIAL PROGRAM FOR CHILDREN 0LATINUM 0OSIDELKI AS WE BELIEVE THAT CHILDREN WILL DRIVE THEIR PARENTS (OW WOULD YOUR COMPANY LIKE TO DEVELOP FOR SELF EDUCATION AND CHILDREN ARE OUR FUTURE WHO WILL BE ABLE TO SUPPORT THE REFORM /F COURSE JUST IN 5KRAINE IN THE FUTURE ONE BANK CANlT CHANGE THE HISTORY BUT WE ARE 4HE FIRST PRIORITY FOR US IS TO MEET THE NEEDS DOING THE FIRST STEPS AND ARE HAPPY TO SHARE OUR OF 5KRAINIANS FOR GETTING MONEY TO SOLVE THEIR EXPERIENCE WITH OTHER MARKET PLAYERS LIFE ISSUES !ND WE ARE HAPPY TO REACH 4/0 (OW DO YOU SEE THE YEAR AHEAD IN 5KRAINE BANKS IN ACCORD TO CONSUMER LOANS IN 5!( CONSOLIDATED LOAN PORTFOLIO 5!( !RE YOU BROADLY OPTIMISTIC OR PESSIMISTIC AND WHY MLN 7E OBSERVE SLOW MARKET RECOVERY BUT WE DO NOT EXPECT THAT THE END OF SHOULD BE CONSUMER LOAN DRIVEN 4HOSE BANKS WHICH STOPPED CREDITING IN THE CRISIS NOW DO NOT KNOW THEIR CUSTOMERS )T IS LIKE MEETING A STRANGER IN DARKNESS 9OU SEE ONLY THE SILHOUETTE BUT YOU ARE NOT SURE WHO IS STANDING !S WE ARE CONSTANTLY COMMUNICATING WITH OUR IN FRONT OF YOU CUSTOMERS IN BRANCHES AND VIA SOCIAL NETWORKS !S FOR 0LATINUM "ANK WE STILL SEE GREAT OPPORTU WE KNOW WHAT THEY REALLY NEED 4HEREFORE IN WE ARE LAUNCHING SIMPLE AND USER FRIENDLY NITIES 7E HAVE THE STRENGTH TO TAKE ADEQUATE RISKS )NTERNET BANKING WHICH WILL PROVIDE THE POSSI AND THE ABILITY TO THINK INNOVATIVELY WHILE WORKING BILITY OF FULL FINANCIAL MANAGEMENT FROM HOME HARD AND OUR TEAM TRULY SHARES 0LATINUM VALUES /UR CLIENTS WILL BE ABLE TO MAKE DIFFERENT PAY !ND ALL THESE FACTORS GIVE US STRONG CONFIDENCE TO BE OBJECTIVELY OPTIMISTIC MENTS OPEN DEPOSITS ETC 7E ARE ALSO WORKING UNDER THE INTRODUCTION OF SIMPLE AND ATTRACTIVE PRODUCTS FOR SMALL AND MEDIUM ENTERPRISES AS THESE SMALL COMPANIES DRIVE THE COUNTRY ECONOMY AND DO NEED BANK ING SUPPORT
4HINGS TO KNOW EBA Charity Thanks to the support and assistance of the EBA partners and companies during the Christmas parties for kids, organized by the EBA and the Walt Disney Pictures, we have managed to collect enough money to help Kyiv maternity home #7. We have purchased and conveyed to hospital’s disposal two Perfusor Compact S Infusion Pump Systems. These devices are already used in the intensive care department of the hospital, and, we hope, will help to save lives. We thank everyone who cares!
www.eba.com.ua
*O 'PDVT Importing cures easy? .BSDI &#" )FBMUI $BSF $PNNJUFF NFNCFS DPNQBOJFT IBE B NFFUJOH XJUI 'JSTU %FQVUZ )FBE PG 4UBUF $VTUPNT 4FSWJDF 0MFYBOEFS %PSPIPWTLZ SFQSFTFOUBUJWFT PG UIF ,ZJW 3FHJPOBM $VTUPNT BOE SFQSFTFOUBUJWFT PG UIF DFOUSBM PGGJDF PG UIF 4UBUF $VTUPNT 4FSWJDF 5IF NFFUJOH XBT QSFDFEFE CZ DPNQMBJOUT PG UIF &#" )$$ NFNCFST XIP DMBJNFE UIBU UIF 0SEFS /P BEPQUFE CZ ,ZJW 3FHJPOBM $VTUPNT PO 'FC IBNQFSFE UIFJS JNQPSU BDUJWJUZ "T QFS DVTUPNT BVUIPSJUJFT UIF NFOUJPOFE 0SEFS JT BO JOUFSOBM JOTUSVDUJPO GPS DVTUPNT PGGJDFST PO IPX UP EFBM XJUI DMBTTJGJDBUJPO JTTVFT SFMBUFE UP B OVNCFS PG DPN† NPEJUJFT JODMVEJOH UIPTF DMBTTJGJFE BT NFEJDBM ESVHT 8IJMF EJTDVTTJOH UJNFGSBNFT GPS DVTUPNT DPOUSPM $VTUPNT 0GGJDF SFBTTVSFE UIBU JG QSFQBSFE BOE TVCNJUUFE BDDPSEJOH UP UIF MBX UIF EPDVNFOUT XJMM CF QSPDFTTFE XJUI OP EFMBZ Notwithstanding this swift reaction from the government’s side, the issue of customs clearance of almost all product range faces sporadic complications. The EBA representatives agreed with customs authorities to keep in touch and to continue the dialogue in case there would be problems and delays with customs control. The Customs Service expressed their interest in collaborating with the EBA in terms of customs procedures related to clinical trials. Krzysztof Siedlecki, Country Manager, Astellas Pharma Europe BV Business and Customs Office in any country live together like cats and dogs, water and fire or… you name it. There is no difference in this relation in Ukraine. Recently, pharmaceutical importers and manufacturers were entertained by Kiev Regional Customs Office by instruction No.196. In simple words the instruction deals with classification of goods – if the product is classified as drug it’s VAT and customs duties free if however is considered KRZYSZTOF as Food Supplement all customs and taxes apply. Major concern of the busiSiedlecki ness was not the law as such but the implementation. The last was expected to be long; time-consuming with possible procedural abuses – shortly – the bureaucratic nightmare. Possible consequences – tons of pharmaceutical goods on quarantine, additional work for distributors, brokers and offices resulting in major delays of deliveries and finally shortage of medicaments in pharmacies. Mankind did not invent better way to solve problems and clarify doubts than consensual discussion. EBA followed this invention. I must admit that the pace of action really shocked me. It was LESS than 24 hours between EBA application for the meeting and the response from the State Customs Service. On March 3rd delegation of EBA Health Care Committee with Mr. Kiryk – head of the HCC - in charge were admitted by First Deputy Head of State Customs Service Mr. Dorohovskiy and his subordinates. The meeting was very constructive and from the first moment we could observe the will of cooperation from the side of Customs Authorities. I don’t want to go deep in the details but the concerns of Pharmaceutical Business were listened very carefully. Some of them were pointed as important and promised to be under special control, some of our concerns were clarified on site by well prepared and competent coworkers of Mr. Dorohovskiy. After this meeting few thoughts come to my mind which I would like to share with you. First – response time of the state authorities to EBA signals reached good and expected level. Finally Government and its agencies noticed importance of the biggest Ukrainian business organization and the will to point and solve problems, not to generate them. Second – there is a platform for communication and EBA with all Members shall use it to develop better business climate in Ukraine. I see the improved motivation of Government authorities to use EBA as resource of ideas, experience and good business practice and consider EBA as a partner not opponent. Third – the organization is as strong as strong and active are its Members. The mobilization of pharmaceutical industry was exceptional when Hannibal was ante portas. We must be active not only when in calamity but must predict and prevent misfortunate or wrong decisions of Government and its affiliates. Therefore permanent and consequent cooperation must be set on every level – EBA is the best platform to provide it. I would like to thank all colleagues from pharma industry also gathered in other organizations like AIPM for their contribution and cooperation. Maryna Buchma, External Relations Manager GlaxoSmithKline Ukraine The meeting with the Deputy Head of the SCS of Ukraine organized by EBA was a very good example of the cooperation with the state authorities and their readiness for such cooperation. The SCSU representatives provided clarifications and explanation why they implemented the mandatory classification of medicines requirements. Now we can say that introduction of mandatory classification of medicines had no effect on the business processes of the GlaxoSmithKline MARYNA Buchma Pharmaceuticals Ukraine. At this moment, the company had not faced any problems with delays and downtime of company's products at the Customs dealing with the SCSU order N196. Nevertheless, there are a lot of issues within the custom clearance procedure of the medicines imported to Ukraine – medicines for clinical trials, classification issues and etc. We hope that the dialogue will continue and International pharmaceutical companies will have opportunity to avoid delivery problems that they could have faced during the customs clearance of medicines. Key facts about customs clearance in Ukraine*: !VERAGE NUMBER OF DAYS SPENT FOR CUSTOMS CLEARANCE OF ONE SHIPMENT
2ATE OF GOODS PHYSICAL INSPECTIONS
4OTAL NUMBER OF REJECTIONS TO APPLY ST CUSTOMS VALUATION METHOD SHARE OF TOTAL CUSTOMS DECLARATIONS NUMBER
!VERAGE NUMBER OF DOCUMENTS PER ONE SHIPMENT
%"! CUSTOMS INDEX
7E LOOK FORWARD TO YOUR FEEDBACK AT
PGGJDF!FCB DPN VB
4 Opinion
www.kyivpost.com
March 18, 2011
Editorials
Impossible job
A female knight? No, no, no. Impossible! This can’t be!
Ukrainian President Viktor Yanukovych is clearly eager to polish his image. Far from squeaky clean before he took office more than a year ago, the president is an even more tainted figure today. Distrust of his administration is growing as criticism mounts over his rollbacks in democracy, the rule of law and investment climate. To combat the bad publicity, Yanukovych has hired a respected journalist, Darka Chepak, as his press secretary. She started off her career as a hard-hitting journalist in Lviv. She worked with Georgiy Gongadze, the investigative journalist whose unsolved murder 11 year ago remains the top symbol of lawlessness during President Leonid Kuchma’s era from 1994-2005. Her connection to Gongadze makes it hard to understand how Chepak accepted the job. She also spent time working alongside the Kyiv Post in setting up Korrespondent news website and magazine, both of which are no longer affiliated with the Kyiv Post and are still owned by American Jed Sunden. Chepak went on to become an editor on Channel 5 and for Savik Shuster’s television talk shows. This may be the ultimate career challenge, however: Making Yanukovych look like an enlightened democratic leader, not an oligarch-backed autocrat. Good luck with that. During a briefing with journalists, Chepak said that she accepted the job because she “looked into” Yanukovych’s eyes and saw dedication to reforming and fixing Ukraine. Maybe so. But people are judged by their deeds, not their eyes. And so far, we see a democracy under threat. We also see the uncompetitive privatization of Ukrtelecom as another clear signal that Yanukovych-friendly allies will once again grab the nation’s biggest assets for themselves at the nation’s expense. We see state-sponsored attempts to squeeze investors out of Ukraine’s promising grain market for the benefit of companies with murky ownership. We also see average Ukrainians shouldering an unfair share of the tax burden while the elite few continue to hide enormous profits offshore. We also see Ukraine’s average citizens and future generations being left with the tab for all of these deplorable activities. Not even the most skilled press secretary or spin doctor can change the harsh realities that are so obvious to so many people, here and abroad.
Nuclear pause The widening crisis at the Fukushima Dai-ichi nuclear plant in Japan has focused the world’s attention on whether such power stations can ever be safe. The world has looked to the 1986 Chornobyl disaster in Soviet Ukraine, which remains the world’s worst nuclear accident, as an example of the future that could face Japan: a $12 billion cleanup since 1986, a 30-kilometer exclusion zone of uninhabitable land around the reactor and thousands dead and possibly millions affected by radiation. To be sure, the two disasters were very different. Chornobyl was caused by human error in conducting a test that went wrong, while the ongoing crisis in Japan was triggered by an earthquake and subsequent tsunami. But the question that the two disasters raise, however, is the same: How should the need to produce electricity be balanced against the dangers of nuclear energy? As the global population continues to grow, the thirst for energy will continue to grow. Coal-fired power stations harm the environment, and greener forms of energy, such as solar or wind power, are a long way off being able to take up the slack. But the scenes we see in Japan are a further reminder, almost 25 years on from Chornobyl, that nuclear power is not a cure-all. Whatever assurances the nuclear energy industry gives that technology has advanced so far that nothing can go wrong, this simply cannot be true. Humans cannot conquer nature – be it the force of the earth and sea, or the errors that humans themselves make. Ukraine’s government has given no indication it will reconsider plans to increase its reliance on nuclear energy, which currently supplies about half of the nation's energy supply. Worldwide, the trend is the same, with some 62 new nuclear reactors under construction, another 158 planned and proposals for yet another 324 more. No dout, nuclear reactors are likely here to stay, but before more are built we should take a long, hard look at the unfolding tragedy and costs in Japan, as well as the continuing problems with finding hundreds of millions of dollars to clean up and protect Chornobyl, and assess whether it is worth the risk. Now would be a good time to deepen public commitments to safer alternative energy sources.
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: While visiting Israel, Prime Minister Mykola Azarov's press service reported that he was knighted on March 15 by Jerusalem's Patriarch.“I proclaim you a great Commander of the Order of Orthodox Crusaders of the Holy Temple Holy Sepulchre,” the Patriarch of Jerusalem, Theophilus III, was quoted as saying. Tymoshenko received the same award as prime minister in 2009. It is doubtful, however, that Azarov will win any awards from women’s groups soon. On March 13, explaining the lack of women in the Cabinet of Ministers, Azarov told ICTV Channel: “The schedule of the government is so extreme. But this will not last forever. In 2011-2012 this will end and we will switch to a civilized schedule and we will invite women to work as ministers.” (Drawing by Anatoliy Petrovich Vasilenko)
Clara Zetkin, we need you today! L IL IA OSTA PENKO LILIAOSTAPENKO@YAHOO.COM
Most of us girls from the former Soviet Union still celebrate International Women’s Day, which occurs every March 8, but is largely unobserved in the rest of the world. It was established by a German woman named Clara Zetkin a good 100 years ago in order to unite progressive women around the world. As time went by, the meaning of the day has somewhat changed. On this day, husbands are supposed to wake up early, get flowers for their wives and daughters, and treat them in other special ways. The concept is somewhat similar to the Mother’s Day in the United States, when moms are shown appreciation, such as receiving their breakfast in bed. I celebrate both March 8 and Mother’s Day, as it gives me an extra opportunity to receive a nice bouquet of roses, some chocolates and extra kisses from my American husband, who now is perfectly aware of this other special day from my childhood’s history. This year, International Women’s Day was again celebrated rather traditionally in Ukraine. Former Prime Minister Yulia Tymoshenko gave her usual witty greeting, saying that while men carry all the world’s troubles on their shoulders, we, women, are then bound to carry the men. President Viktor Yanukovych issued his greetings as well, in his usual clumsy way, which I did not understand much, except that it presented me with a vivid image of his wife, Lyudmila, secluded somewhere in Donetsk. Many women
Æ Lack of women in top government posts highlights deep problems in administration in Ukraine went as far as saying that they are embarrassed that they used to celebrate this day during Soviet times, and others, like me, just enjoy the ride which brings extra flowers and attention. Leaving the celebration behind, a more serious question about the role of a woman in modern Ukrainian society comes to mind. Traditionally, as part of her Soviet heritage, Ukrainian woman always carried a hammer and a sickle alongside her man, picked up a rifle during war time, and laid train rails and asphalt, if needed, being an equal partner in every aspect of life. Things seemed to change with our new Ukrainian government, including a role played by the first lady. Unlike the previous first lady, Kateryna Yushchenko, who made us all proud of her social initiatives, pleasant demeanor and simply good sense of style, the current first lady became absolutely invisible after the election of her husband. We still remember her infamous speech during the 2004 Orange Revolution about poisoned American oranges and revolutionaries with meningitis. Unfortunately, our troubles do not stop Æ17
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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Opinion 5
March 18, 2011
Want to save lives? Hike cigarette taxes
Public health activists depict people “hooked” on smoking during a 2010 rally. Ukraine's cigarettes remain among the cheapest in the world, contributing the nation’s high smoking rate and the premature deaths of 100,000 Ukrainians every year. (UNIAN)
When cigarette taxes are raised, smoking declines while tax revenue increases – a win-win situation 5.0
Production (billion cigarettes) Inflation-adjusted tobacco excise revenues (Hr, billion)
129 120
130
120
3.8 114
109
102
97 81
1.7
70 0.7 2001
0.9
1.0
1.2
1.3
1.4
1.4
Source: State Tax Administration
2002
2003
2004
2005
Ukraine during the Global Adult Tobacco Survey, smokers were asked to show the pack. Only 1.5 percent of them smoked Moldavian or Russian cigarettes. It means that, in 2009, about 1 billion smuggled cigarettes were consumed in Ukraine, while more than 30 billion cigarettes were produced in Ukraine just to be smuggled out of it. The recent tobacco taxation policy was really a success in Ukraine. Tax rates increased by six times and this caused a five-fold increase in revenues. Cigarette production declined by 21 percent due to the decrease of both tobacco consumption and
2006
2007
2008
2009
2010
smuggling out of the country. However, currently the average price of Ukrainian cigarettes is just Hr 8 per pack, while in Poland it is 9 zlotys – three times higher. In 2011, Russia increased the tobacco tax rate much higher than Ukraine. Since April 2011, cigarette tax rates in Moldova will be raised by 50 percent. These are all reasons that justify continuing with a successful policy and increasing tobacco taxes in Ukraine again. Konstantin Krasovsky is head of the Tobacco Control Unit at the Ukrainian Institute of Strategic Research for the Ministry of Health in Ukraine.
US, EU need to work together to promote West’s interests in nation ALYO N A G E T M A N CHUK
These days, I often hear the opinion that the European Union should take Belarus, Moldova and Ukraine under its patronage since the United States has its hands full all over the world. This opinion is even expressed informally by U.S. government representatives.
WITH SVITLANA KOLESNYKOVA
Do you think that police are behaving more aggressively in the streets recently? Alexander Kuzmin photographer “Yes, I noticed more patrols in the streets. It’s very unusual. We never had patrols in our district. I live in Obolon. Now there are regular evening patrols of six to eight police officers.”
KON S TA N T I N KR A S OV S K Y
In March 2009, parliament discussed proposals to increase tobacco excise tax from Hr 1 to Hr 2 per pack of 20 cigarettes. Representatives of transnational tobacco companies were very critical about the proposals and alleged that Ukrainians would not smoke less, but would just switch to cheaper smuggled cigarettes while government revenues would decline. Since that time, the excise tax rate was increased even more and, at present, the average excise tax is more than Hr 3 per pack. The figures show what eventually has happened. In 2007, when the tax rate was just Hr 0.5 per pack, the government collected Hr 2.5 billion from excise tobacco taxes. Then the rate was raised several times and the revenues increased to Hr 3.5 billion in 2008, to Hr 9 billion in 2009, and to Hr 13 billion in 2010, more than five-fold in three years. In neighboring Russia, tax rates were also raised in those years, but not so fast as in Ukraine, and the revenues also increased, but only twice: from 50 billion rubles in 2007 to 108 billion rubles in 2010. Tobacco consumption trends are even more indicative. In the mid-2000s, daily smoking prevalence in Russia and Ukraine was very similar – about 35 percent. In 2009, the Global Adult Tobacco Survey was conducted in both countries and daily smoking prevalence was 33.8 percent in Russia and 25.5 percent in Ukraine. Ukrainians smoke less, a main reason why cigarette production in Ukraine decreased from 129 billion in 2007 to 102 billion in 2010. It is worth mentioning that, in 2001, only 70 billion cigarettes were produced in Ukraine and the sharp production increase was mainly pushed by the huge smuggling of Ukrainian cigarettes to the neighboring countries where cigarette prices were higher. British member of parliament Charles Tannock stated that, out of 80 billion cigarettes illegally smuggled into the European Union in 2008, 30 billion came from Ukraine. The World Customs Organization issued a report on customs and tobacco with data on large (more than 100,000 cigarettes each) seizures. The country of cigarette departure was identified for 2,688 such seizures, and in 1,020 cases it was Ukraine. However, in 2008, there were 573 seizures of Ukrainian cigarettes and only 447 in 2009, while seizures of Russian cigarettes increased from 48 to 84. So while Ukraine keeps the position as a world leader in cigarette smuggling, smuggling became less profitable after the tobacco tax increases and it is on the decline. This is the second reason why cigarette production in Ukraine decreased in recent years. The tobacco industry tries to create the impression that cigarette smuggling into Ukraine is more important than smuggling out of Ukraine. Indeed, currently prices of cheap cigarette brands are higher in Ukraine than in Moldova and Russia (while Marlboro is still more expensive in Moscow compared to Kyiv). To measure consumption of smuggled cigarettes in
VOX populi
But the European Union and the U.S. will have much more effective ways to influence Ukraine, if they act not separately as Europe and the USA, but together, representing the West as a whole. Both Washington and Brussels have opportunities. The benefits that the EU offers are obvious: These are geographic proximity, tight economic relations and a positive perception of the EU by the Ukrainian political elites and population. Washington has its advantages also. Firstly, the current Ukrainian authorities respect only two things: money and power. The EU, in the eyes of Ukrainian decisionmakers, seems to be weakened. It is so not Æ17
Æ West has more clout with Yanukovych than it thinks; it just needs to use its leverage
Luca Del Piere, stock market trader “Yes, I see that they check documents in the streets of my district. I live in Darnitsa. But they stop Ukrainians, not foreigners. I didn’t experience this myself, maybe because I don’t look Ukrainian. For me it’s strange, because in my country - I’m Italian - such checks are not common. If they check there should be a reason.” Roman Shpitser research associate “Perhaps at the railway station. I go home by a suburban train, and I noticed at nights there are more police patrols. They walk about the station, check documents of people whom they see as suspicious. However, I think their behavior is not that aggressive.” Elena Solnechna, theater lighting operator “Using transport quite often, I notice much more of the road police. They stop drivers, check documents, charge them with speeding. Their quantity is noticeable these days. But I don’t go deeply into the issue. I am not interested because I don’t drive myself.” Natalia Belokurova private enterpriser “I haven’t been in such situation, as I am a woman, although I see nowadays more police in the subway. They do not bother women and are mostly concerned with men. What is surprising for me is that these men [they stop] usually look well and are decently dressed. So there’s absolutely no visual reason for the police to stop them.”
6 Business
www.kyivpost.com
March 18, 2011
Ukraine ties ‘open sky’ deal to visa-free travel BY S V I T L A N A T U C H YN S KA TUCHYNSKA@KYIVPOST.COM
Ukraine will not sign an “open sky� deal with the European Union until Ukrainians are granted visa-free travel to EU bloc countries, Deputy Prime Minister Borys Kolesnikov said on March 11. The deal, which would cause flight prices both domestically and internationally to drop as more routes and competition open up, had been pushed for by experts and foreign airlines. But “signing the deal without prior visa cancellation for Ukrainians will cause Europeans to fly to Ukraine freely while it will remain hard to fly to Europe for Ukrainians,� said Kolesnikov. “Our airways are not ready for competition like that,� he added while noting that the government had almost reached an open sky deal with Russia and Israel, countries where Ukrainians can travel without visas. With Ukrainian airlines Aerosvit and Ukraine International Airlines as the dominant Ukrainian airlines flying to
foreign destinations and Donbasaero, Dniproavia and Windrose focused mostly on domestic routes, foreign passenger airlines complain that it is hard to get access to routes in Ukraine. In an earlier interview with the Kyiv Post, John Stephenson, vice president of Wizz Air, the first low-cost airline on the Ukrainian market, said that “getting access to routes is the biggest issue in Ukraine.� Wizz Air originally launched flights to Lviv, Odesa and Kharkiv, but then cancelled them, leaving only Kyiv – Simferopil route open. Wizz Air continues, however, with its regular flights between Ukraine and foreign destinations. But it stands largely alone as the only major low-cost airline from abroad operating in Ukraine. Expansion of foreign companies, including low-cost carriers, is also hampered by Ukrainian bureaucracy and government policy, where getting operating permission usually takes more than one year. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.com.
ÆOn the move DARKA CHEPAK has been appointed press secretary fror Ukrainian President Viktor Yanukovych. Chepak started off her journalism career more than a decade ago in Lviv. She soon moved to Kyiv, where she worked under Georgiy Gongadze, the investigative journalist whose Sept. 16, 2000, murder remains unsolved. She also spent time working alongside the Kyiv Post in setting up the Korrespondent internet news portal and print magazine, both of which are no longer affiliated with the Kyiv Post and under separate ownership. Chepak went on to become an editor at Channel 5, and most recently editor at Savik Shuster’s television talk show.
Wizz Air, Hungary’s low-cost airline, tried in recent years to offer a broad range of domestic flights between Kyiv and other major Ukrainian cities, including Odesa (above). But company officials say they were forced to cancel all domestic Ukrainian flights with the exception of a Kyiv-Simferopil route. If purchased at least one month in advance, a round trip flight on Wizz Air between Simferopol and Kyiv costs $130. A comparible Dniproavia flight costs almost $200. The difference between what low-cost airlines such as Wizz Air and leading Ukrainian airlines is even more striking on international routes. Flying roundtrip to Stockholm from Kyiv on Wizz Air costs a little more than $100. Flying on the same route and dates, also roundtrip, in an economy seat on Aerosvit costs $288. (UNIAN)
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.
DANYLO SPOLSKY was
LISE MEUNIER
promoted to sales and trading manager at Kyiv-based investment bank BG Capital, a subsidiary of the Bank of Georgia. Spolsky joined BG Capital in September 2008 as an analyst and research editor. Prior to that, he worked at Alfa Capital as analytical research editor. Spolsky started his career in Ukraine as business editor at the Kyiv Post. Spolsky completed an undergraduate degree in Eastern European studies at the University of Toronto, Canada.
joined the American Medical Center clinic in Ukraine as a consultant. Meunier is a French physician specializing in gastroenterology, hepatology and medical proctology. Prior to the appointment she practiced in Paris and Creteil. Meunier graduated from the University of Paris VI Pierre and Marie-Curie, where she received her MD degree in hepatology and gastroenterology.
IAN PROSSER has been appointed board chairman of JKX Oil & Gas, an exploration and production company, listed on the London Stock Exchange, which has four licenses for oil and gas field development in Poltava Oblast. Ukrainian billionaire Igor Kolomoisky has in the past year consolidated a nearly 30 percent stake in JKX. Prosser is chairman of The Navy Army & Air Force Institutes, BP Pension Trustees Ltd and a non-executive director of Sara Lee Corporation, based in Chicago. Formerly, Prosser was non-executive deputy chairman of BP Plc, chairman and CEO of Bass PLC, chairman of InterContinental Hotels and also senior independent director of GlaxoSmithKline. Prosser was educated at Birmingham University, where he graduated as a Bachelor of Commerce. He was knighted in 1995.
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Business 7
March 18, 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 DANIIL SHASH
Outsourcing payroll gains popularity as way to cut costs in tough economy The human resources outsourcing market is in a stage of rapid growth throughout the world. According to research by Global Industry Analysts, the human resources outsourcing market is continuously growing and will reach $162 billion by 2015. Payroll outsourcing plays a major role in this figure. A key element of the growth of global human resources outsourcing is global deals, where a multinational company outsources human resources functions in its multiple locations to a single provider. Ukraine is a big country in Eastern Europe, so many major global corporations have their
offices and representatives here. In most cases, Ukrainian human resources functions have become part of the global outsourcing deals. This means that local human resources and finance managers get a “recommendation” from their headquarters to follow global policy and outsource non-core human resources and finance and accounting. In Ukraine, the payroll normally falls under the responsibility of the accounting department, while globally is dealt with by human resources. The 2008 global financial crisis and 2009 world recession has made companies pay more attention to the
process of optimization and increasing efficiency. This made many global corporations revise their accounting and human resources procedures and follow their global practices in Ukraine. Payroll has moved from accounting to human resources and this has caused additional difficulties for local human resources managers. It is hard to control a process that you don’t know how to manage, since it wasn’t previously in your remit. With the global economic downturn, cost reduction has become paramount for businesses. Payroll is just one of the areas that are more commonly outsourced due to the inherent com-
In case you missed them, read the last six Business Sense columns by experts online at kyivpost.com March 11 with Valeriia Gudiy, lawyer with Ilyashev & Partners: “Employees have too little power in draft labor code”
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”
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March 4 with Pavlo Boyko, managing director of TMF Ukraine: “Living in era of new tax code: What to expect, what to do”
March 4 with Alexei Kredisov, managing partner of Ernst & Young in Ukraine: “When will nation speak international language of accounting, auditing?”
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”
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Æ With unclear rules on income, payroll taxes in Ukraine, transferring risk to third party provider can be a magic pill plexity of the function and accuracy required. Research carried out by leading auditing firm PwC and ADP, a payroll outsourcing provider, showed up the hidden costs that can be associated with payroll when done in-house, as compared to when outsourced. Research showed that organizations that retain payroll in-house spend on average 18 percent more than those that use outsourcing. In Ukraine the impact of global tendency toward outsourcing of finance and accounting and human resources is quite extensive. It constantly provokes rapid growth of demand for such services. Along with global factors, the new tax code is good motivation for such development. In a situation where even state authorities do not explain the procedure of filling personal income reports, for example, transferring company risks to a third party provider might be a magic pill. The economic slowdown has provoked growth in the outsourcing mar-
ket, as this is aimed at decreasing costs. According to research by Intercomp Global Services, the payroll outsourcing market in Ukraine has doubled in the past two years. There are a number of local outsourcing service providers along with companies that are present in other regions. It should be also mentioned, that consulting and audit companies can also deliver human resources and finance and accounting. And it’s not just the big foreign companies that are turning to payroll outsourcing companies. Interest from Ukrainian companies is also on the rise. Overall, the outsourcing of noncore activities is gaining popularity in the country. In the next few years we will see further strengthening of the Ukrainian outsourcing market, closely following global tendencies. Daniil Shash is sales and marketing director for Ukraine and Kazakhstan at Intercomp Global Services, a payroll and accounting services company. He can be reached at ukraine@intercompglobal. com.
8 Business
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March 18, 2011
French farm group aims to double business in Ukraine, eyes Argentina
Many Ukrainian farms still depend on inefficient Soviet-built harvesting tractors (above) and other farming technologies. Experts say that if the country removed protectionist export restrictions, more investment would flow into the nation’s promising farming sector and cash-strapped farmers would earn more from their crop. The country has in the past decade harvested between 25 and 50 million tons of grain each season. Experts say that if Ukraine’s government cancels damaging grain export restrictions and drops plans to introduce monopolies in the market, investment could help Ukraine double or triple its crops within decades. This, in turn, could turn Ukraine – already one of the world’s top 10 grain exporters – into a geopolitically powerful global food supplier. (Yaroslav Debelyi)
Grain export curbs scare off investors in Ukraine, Russia (Reuters) – Grain export restrictions in Ukraine and Russia to address food security concerns are making investors re-think their commitments in these regions, the European Bank for Reconstruction and Development (EBRD) said. “There’s been more downscaling and taking more time over investment decisions,” in light of the policy decisions in Ukraine and Russia, said Gilles Mettetal, director of the EBRD’s Agribusiness unit. Ukraine’s government is considering a draft law that would allow only the state-run grain company and producers, not private traders, to export agricultural commodities. It already had introduced export limits this season after a drought last summer, and neighboring Russia has also banned grain exports. “Export quotas have damaged the confidence of investors already. Now this new law will do even more damage, and it will take a long time to ever regain that confidence,” Mettetal said. The EBRD sent a joint letter with the IMF and World Bank to Ukraine’s Prime Minister three weeks ago airing concerns that a proposed state-controlled grain export monopoly could
deter future private sector investments in the country’s agricultural industry, but no response has been received, Mettetal said. “I spent half an hour on the phone yesterday trying to reassure a private sector investor, who is reconsidering an investment in a (agricultural) processing facility in Ukraine,” Mettetal said. High grain prices are a global concern, which helped fuel protests that toppled the rulers of Tunisia and Egypt earlier this year and have spread through North Africa and the Middle East. “Politically the (Ukraine) government wants to reassure the population that these (private) traders are not going to export grain while the population starves,” Mettetal said.
EBRD and investment Ukraine, the world’s top barley exporter and a major wheat supplier, benefitted from around 170 million euros ($236.1 million) in EBRD investment in agricultural projects in 2010. “I estimate that last year we could have financed an additional 50-100 million euros in the Ukraine if the political conditions were better,” Mettetal said. The EBRD is the largest single inves-
tor in agribusiness in Eastern Europe and Central Asia and invested around 800 million euros in the region in 2010. Earlier this year the EBRD brought together Ukrainian government officials and private sector investors to discuss the challenges to developing agriculture in the region and address growing frustration from its private sector clients. “We want to continue to support policy dialogue with the government, providing them with instruments such as pre-harvest financing as alternative market-oriented ways to prevent systematic state intervention,” Mettetal said. The draft law for the state grain export monopoly has already raised concerns among traders, who have invested millions of dollars in Ukrainian grain export terminals, silos and local farms. “Russia, Ukraine and Kazakhstan could export half of the world’s grain export needs, including 60 percent of the world’s wheat needs. The potential is enormous,” Mettetal said. “Without private sector investment they will never be able to achieve progress.”
about $252 per tcm in the fourth quarter of last year. Independent analysts said earlier this month that Russian gas prices were likely to rise to an average of $300 per tcm in 2011 due to a jump in oil prices. In line with a 10-year deal between Ukraine’s state gas and oil company Naftogaz and Russian gas giant Gazprom, gas prices are reviewed every quarter taking into account the price of crude oil and oil products.
Charles Vilgrain, chief executive of AgroGeneration
AgroGeneration produced 120,000 tonnes of cereals in 2010 – against 55,000 in 2009 and 18,000 in 2008 – and expects to be EBITDA positive in 2011. Vilgrain said he had no “clear visibility” on whether it would break even at the net profit level this year. Agro has a market value of 62 million euros.
Argentine deal in offing AgroGeneration may consider expanding in Ukraine by building storage facilities or first transformation facilities. Vilgrain said it did not plan to control more than 100,000 hectares in the Black Sea country. “I do not think we want to get much bigger in this country as we would rather develop a second area in order to mitigate climatic and geopolitical risks,” he said. The southern hemisphere, “most probably Argentina,” would allow AgroGeneration to alternate harvests, and not have all its output in 2-3 months, said Vilgrain, adding the company was studying conditions and partnerships for a possible investment in one of the world’s top soybean, corn and wheat exporters. Asked when a deal could come in Argentina, Vilgrain said: “Probably in the second half of the year.” AgroGeneration could invest in Africa, “a region with a huge potential” but probably not for at least five years. “There is something wrong with foreigners controlling millions of hectares in Africa in countries that are net importers of agricultural commodities. Promoting agricultural development in strong exporting countries like Ukraine is more sustainable in my point of view.”
A glance at Agrogeneration’s farms in Ukraine
Russian gas import price for Ukraine to jump late this year Reuters – The price for Russian gas imported by Ukraine will jump to $347 per 1,000 cubic metres (tcm) in the fourth quarter in 2011 from $264 in the first quarter, a top Ukrainian official was quoted on March 14 as saying. “According to the price formula, we will have the price of $293 in the second quarter, $313 in the third quarter and $347 in the fourth quarter,” Energy Minister Yuriy Boyko told Ukraine’s Channel 5. Ukraine bought Russian gas at
PARIS (Reuters) – French farm investor AgroGeneration aims to double its business in Ukraine and make a foray in Argentina, convinced that demographics will support commodity prices and its business model. Chief executive Charles Vilgrain also said on March 15 that the company he founded four years ago with French entrepreneur Charles Beigbeder will grow through acquisitions and raise funds needed for its expansion on the debt market. “There is a (agricultural commodity) shortage at a global level and this shortage will not be overcome in the next decade,” the 32-year old agronomist said. “It is difficult to put land into cultivation. It is not like building a plant that produces as planned the following year,” Vilgrain said, dismissing the idea of a “green bubble” as more investment funds and companies such as AgroGeneration or British group Landkom (LKI.L) invest in arable land worldwide. Population growth, rising demand for meat – “you need 5 or 7 kilos of cereals to produce one kilo of meat,” says Vilgrain – and increasing use of agro-commodities for non-food usage such as biofuels, can only push grain prices higher, he said. AgroGeneration has, so far, based its development in Ukraine, the breadbasket of the former USSR, lured by rich soils, cheap rental and labor costs, and a wide choice of uncultivated or badly cultivated former collective farms to turn around. “Today we are controlling 50,000 hectares. We are looking to ... double in the next two to three years, which will be feasible through two or three acquisitions,” Vilgrain said. AgroGeneration has identified and approached several companies in a distressed financial situation following the sharp fall in global commodity prices in 2009, and last year’s drought and export quotas in Ukraine, said Vilgrain. While giving no financial details, Vilgrain said the size of the deals ranged from 9,000-33,000 hectares of cultivated land that AgroGeneration would seek to pay for with cash and equity. The group, which raised 14 million euros ($20 million) through its market listing last year, will need to come back to the market to raise more cash, he said, adding it would also look at banking loans and the European Bank for Reconstruction and Development (EBRD) for financing.
8,000 hectares
12,000 hectares 8,000 hectares
6,000 hectares
5,000 hectares 6,500 hectares
,
A Ukrainian technician checks consumption of natural gas at household meter.
Existing Farms
Source: www.agrogeneration.com
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Business 9
March 18, 2011
Critics say Ukrtelecom sold for far less than its worth Æ1 for sale in the future, no serious foreign investor would come,â€? Bondar said. “It’s simply a signal to foreign investors to stay away from Ukraine, as everything has been already divided up amongst the nation’s elite. I think the real buyer is someone very close to Yanukovych.â€? Prominent economist Alexander Paskhaver, president of the Center for Economic Development, agreed. “Basically, it’s a sign to foreign investors that they are not welcome in the country. Many are probably wondering why they come here if they are not wanted,â€? Paskhaver said. The cost of selling state assets below their market value, a tradition of Ukraine’s post-Soviet privatization, is easily measured in billions of dollars of lost tax revenue to the state. Critics like Bondar suspect that, like in previous uncompetitive privatizations, insiders close the administration are profiting handsomely in the deals. Ukraine’s State Property Fund on March 11 inked a sale agreement transferring the government’s 93 percent stake in Ukrtelecom to Epic, a Vienna-based investment firm, for $ 1.3 billion. But this, the biggest privatization deal held one year under Yanukovych’s leadership, has a big dark cloud hanging over it. The tender that preceded it has been labeled as rigged because it barred some of the world’s leading telecom giants from participation. Yanukovych’s political opponents, analysts and stock market participants argue that the bidding rules were set up to give an edge to Epic, the sole bidder in a December tender. Some are suspicious that the Austrian firm is acting as front for Ukrainian oligarchs. Critics also allege that Ukraine’s budget, kept financially afloat thanks to billions of dollars in International Monetary Fund loans, was deprived of hundreds of millions of dollars in extra revenue that a competitive, transparent bid might have netted in this single transaction. Some, in fact, believe Ukraine could have fetched closer to $2 billion or more for Ukrtelecom,
a cool $700 million higher than the March 11 sale price.
An Epic deal Epic emerged as the sole bidder in a December tender after tender rules introduced by Ukraine barred many potential buyers from taking part. Rules prevented participation from companies that are more than 25 percent state-owned, as well as firms that have more than a 25 percent stake on Ukraine’s telecom market. This closed the door to a handful of top telecoms that have expressed interest in Ukrtelecom over the years, including Germany’s Deutsche Telekom, Norway’s Telenor, Russia’s Alpha Group and its affiliated Vimpelcom, Moscowbased Sistema and its subsidiary MTS, as well as domestic mobile phone company Kyivstar. In the absence of competition, Ukraine’s government asked a domestic appraiser, Ostrov, to set a final price. Epic ended up paying just $10 million more than the starting price for the monopoly that controls nearly 80 percent of Ukraine’s fixed telephone market. “The [$1.3 billion] sale price can by no means be described as the objective market price,� Bondar said, nothing that the tentative starting price under the previous government was $2 billion in 2009. Back then, up to 10 bidders from Russia, Germany and Japan expressed interest, he said. But the tender was eventually postponed by ex-President Viktor Yushchenko and the dominant Yanukovych-led Party of Regions, against the wishes of then Prime Minister Yulia Tymoshenko, Bondar said. Adding to the controversy surrounding the sale, experts said the debacle marks the first time Ukraine privatized a strategic asset in a manner in which the beneficiary ownership remains unclear. Bondar questioned whether Epic is big and powerful enough to have bought Ukrtelecom on its own. “It’s clear that these Austrians cannot buy this company on their own, as they cannot even imagine such money, and no investment bank would
Oleksandr Ryabchenko (L), head of Ukraine’s State Property Fund, on March 11 signed off on the $1.3 billion privatization sale of a nearly 93 percent stake in state telephone company Ukrtelecom to Vienna-based investment house Epic. Signing the sale agreement from Epic’s side was Wolfgang Herritsch, the firm’s representative in Ukraine. (UNIAN)
provide them with a such loan. I think the real buyer in this deal is someone very close to President Yanukovych,� Bondar said. Ahead of the tender, officials – including Presidential Administration Chief Serhiy Lyovochkin – defended the restrictive tender rules. Ukraine cannot afford to allow foreign governments to own the nation’s main telecom system, Lyovochkin said. Officials, however, could not explain why sale rules would not prevent the new owner from reselling to a company with more than 25 percent ownership by a foreign government. Paskhaver, the economist, was also caught by surprise by the fact that the state phone company was sold without an open tender and at a lower price. “In the atmosphere of total distrust to the government, selling Ukrtelecom to a company and [de facto] openly admitting they are intermediaries and would resell it is definitely a bad idea� and bad sign about the overall state of the investment climate in Ukraine, Paskhaver said.
Bondar said the Ukrtelecom privatization will be investigated by a parliament committee with the aim of discovering the identity of the new beneficiary owners.
Unanswered questions Ukrtelecom’s new owner describes itself as a full-service investment house focusing on Central and Southeast Europe, Turkey, Russia and CIS countries. It claims to have been active in voucher privatizations held in Ukraine in the 1990s, and says its subsidiary in Ukraine has been active in providing services to Ukrtelecom. Epic’s top executives have said that their company plans to finance its acquisition of Ukrtelecom with bank loans, but they refused to name which banks. Asked at the time of the sale about the identity of Ukrtelecom’s new beneficiary owners, State Property Fund chief Oleksandr Ryabchenko admitted that he did not know. “Do you think we can get to Austria and investigate
who is behind whom?� he asked on March 11. Peter Goldscheider, managing partner with Epic, refused to disclose any details regarding the deal before its closure in two months. Goldscheider denied, however, any connection to people close to Yanukovych. "We do this deal on our own risk and do not plan to leave the company in the short term. We want to create value first...and then 4-5 years down the road, we might consider an exit," Goldshcheider said. A highly bureaucratic and inefficient telecom dinosaur, Ukrtelecom employs about 80,000 Ukrainians. That’s double the staff of peers in Europe. It has lost much of its value in the past decade as Ukraine repeatedly delayed its privatization. The company earned only $6 million in the first half of 2010. It has steadily lost market share to fast-growing mobile telephone service providers, but still has around 10 million fixedline subscribers, holds the country’s sole 3G license and is expanding into broadband internet services. While it remains unclear for now whether Epic will, itself, pump the massive investments into Ukrtelecom that are needed, experts say the damage Ukraine faces from holding such nontransparent sales is already weighing in. “I am very surprised that Ukrtelecom was sold to a single investor and the tender conditions were drawn in such a way as to even exclude [major bidders.] There are a lot of questions to ask the president about this sale,� Paskhaver said. Looking ahead to future privatizations under Yanukovych, Oleksiy Blinov, head of research at Kyiv-based investment bank Astrum, said: “We all know there are more big privatizations to come – such as energy generation companies and Odessa Portside Plant. But it is clear now that access to take part in them will also be limited. And I am afraid we all know who the buyers will be.� Kyiv Post staff writer Vlad Lavrov could be reached at lavrov@kyivpost. com
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10 Business
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March 18, 2011
Kryvorizhstal plant on March 21, 2007. (Natalia Kravchuk)
An aerial view of the Azovstal steel plant in Mariupol in 2006. (UNIAN)
Rich owners claim losses to officials
Æ1 much-needed revenues. Many of the practices may be legal, while others appear dodgy, to say the least. The State Statistics Committee estimates that only 63 percent of the nation's companies declared profits in 2010, totalling $7.9 billion. Small- and medium-sized businesses, meanwhile, struggle with a heavy tax burden, complex and ever-changing regulations and no ability to take advantage of these offshore schemes. “Most enterprises downplay their income in Ukraine,” said Oleksiy Blinov, head of research at Astrum Investment Management. “The largest companies move their profits offshore through transfer pricing and other schemes so the figures they disclose don’t show the whole picture and the true financial health of their companies.” In disclosing their 2010 financial figures, one big Ukrainian company after another posted weaker-than-expected financial results in sector after sector, including chemical makers, electric power distributors, machine builders and oil and gas companies. Several of the companies named in this story were contacted for response, but had no immediate comment or their officials required written requests for information. At a briefing with journalists on March 17, Serhiy Lyovochkin, chief
of staff to Ukrainian President Viktor Yanukovych, admitted to owning an offshore company of his own, but insisted it was legal. Lyovochkin also brushed aside suspicions that the nation's largest business groups and companies were showing little profit onshore in order to siphon it abroad and away from tax officials. "I know the owners of many of these companies. They are patriots," Lyovochkin said, noting that much of the business world uses offshore companies. In Ukraine, a good place to start examining the practice is with the metallurgy sector, which provides the nation's top currency earnings. As global steel demand and prices recovered in 2010, Ukraine’s metallurgical sector still managed to post an aggregate loss of almost $480 million compared to $1 billion in 2009. A recent Ukraine steel industry report by BG Capital, an investment bank, named transfer pricing – the allocation of profits for tax and other purposes within a multinational corporate group – a factor that “outweighs all others” in harming the companies’ reported performance. The report, which covered Alchevsk Metallurgical Plant, Azovstal and Yenakievo Metallurgical Plant, stated that the mills’ earnings before interest, taxes, depreciation and amortization
Breakdown of Ukraine’s State Budget Revenues From January through October 2010 Revenues, billions of hryvnia
Who pays?
2009
2010
Total Revenues
217
244
Tax Revenues, including:
163
181
Income taxes
36
41
Profit taxes
26
29
Enterprises
64
65
End consumers at shops, grocery stores, markets and companies paying for inputs to make products
14
19
Manufacturers and end consumers
3
4
Cost passed on to consumers
Value added taxes Excise taxes Import duties
Source: Finance Ministry of Ukraine, Kyiv Post
Employed people
were well behind the 18-24 percent margin range for Russian peers. “Azovstal and Yenakievo, Metinvests’s flagship mills, were hit hardest by transfer pricing practices,” the BG Capital report said. The Metinvest, the steel holding owned by billionaire Rinat Akhmetov, said that it paid Hr 11 billion in taxes in 2010. The international financial watchdog Global Financial Integrity estimates that the financial system leaks $10.75 billion a year through the deliberate under-pricing of exports, overpricing of imports and the purchase of nonexistent services – assisted through offshore tax havens in Cyprus, the Seychelles and the Cayman Islands. All are designed to ensure that profits are held offshore and out of reach of the Ukrainian tax system. “There are many perfectly legal deductions that can reduce a company’s tax liability but this is certainly not the same as tax evasion, which is illegal, or tax avoidance through loopholes in the legislation regarding double taxation for instance, or transfer pricing,” said Martin Raiser, head of World Bank in Ukraine and Moldova. “The latter should be prevented both through better legislation and tighter controls.” “It wouldn’t be frivolous to say that Ukrainian companies are abusing the practice of transfer pricing,” said Vladimir Kotenko, head of Ernst & Young’s tax & law department in Kyiv. Tax avoidance and minimization isn’t limited to Ukraine’s big steel industry. Four of Ukraine’s major chemical producers who make key agricultural inputs also posted negative pre-tax profits in the first nine months of 2010, investment bank Phoenix Capital reported. Stirol, Odesa Portside Plant, Dniproazot and Rivneazot posted a combined $105 million negative bottom line in the first three quarters of 2010. Stirol was $58.2 million in the red after September 2010. Ukraine’s largest oil and gas company, Ukrnafta, posted weaker than expected 2010 financial results due
Martin Raiser, head of World Bank in Ukraine and Moldova. (UNIAN)
to transfer pricing, Dragon Capital, another investment bank, reported. The Privat Group-controlled company posted a $332 million 2010 net income because non-market price dealings with the Ukrtatnafta refinery, a company that’s also in Dnipropetrovskbased Privat Group’s orbit. “We … think that there exists a risk of further financial deterioration should Privat continue with its transfer pricing scheme boosting Ukrtatnafta’s profitability at Ukrnafta’s cost,” a recent Dragon Capital note to investors read. Dragon Capital also reported three electricity generators performed poorly in 2010. Zakhidenergo, the third largest Ukrainian thermal generator and Donbasenergo posted $42 million in losses while Dniproenergo posted a net income of $23.8 million, 21 percent below Dragon’s forecast. Machine maker Sumy Frunze saw net income sink by four times year-on-year to $12 million. Steelmaker Azovstal posted an unforeseen 2010 net income loss of $23 million while the Yenakievo and Alchevsk Metallurgical Plants were in the red $224 million by the end of September 2010. And despite solid production last year MMK Illicha, which Metinvest took over in 2010, had a negative $52 million bottom line in 2010. “The poor results support our view that MMK Illich’s new owner is likely to position MMK Illich as a cost center with the holding, similar to its other steel mills, by supplying iron ore and coke at above export prices,” a BG Capital note said. Such schemes to maximize profits are far from Ukraine’s small- and medium-sized business owners, suffocated by regulations, red tape and official and unofficial shakedowns. “Although Ukrainian small businesses under the simplified tax system pay little tax, both small and medium size businesses face significant administrative burdens,” said the World Bank’s Raiser. “We have argued in the past for a reform of the simplified system to accommodate true small businesses, but only in parallel with simplifying tax
administration,” Raiser added. The goal of such a progressive tax system, according to experts, is to allow Ukraine’s struggling small and medium-sized business to blossom, which would support development of a prosperous middle class that is key having a healthy economy. Achieving this, economists say, would put Ukraine’s economy on more solid footing. “What’s needed is a fairer tax code and administration,” said Ihor Burakovsky, director of the Institute of Economic Research and Political Consultations. “Taxes shouldn’t have a universal approach to everyone, plus economic recovery isn’t always related to increased public financing, what matters is how taxes are calculated, collected and it’s also about corruption.” But despite the government trumpeting its new tax code, passed into law last year, this hasn’t happened. According to Ernst & Young’s Kotenko, the new tax code, which went into force Jan. 1, isn’t “conceptually” new at all. “The old rules and norms have mostly just been shuffled around. The old bureaucratic system is still preserved, the document as a whole is still archaic, the parameters are still extensive though,” Kotenko said, adding that only larger companies are better equipped to cope with the extensive tax compliance burden. He said Ukraine’s largest companies can still “enjoy some historically available tax optimization schemes” leaving the government little to tax. The bad news is that this scheme of hiding profits from the tax inspector seems to be accelerating, according to figures from Ukraine’s State Tax Administration. In the first half of 2010, exports to offshore companies increased by 54 percent to $1.6 billion. The figures would suggest that companies are purposefully shying away from complying with tax rules and regulations and thus aren’t paying their fair share of taxes. Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com.
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News 11
March 18, 2011
Kyiv moves to ban sales of alcohol, cigarettes in kiosks BY S V I T L A N A T U C H YN S KA TUCHYNSKA@KYIVPOST.COM
Despite resistance from affected businesses, Kyiv on April 1 is banning alcohol and tobacco sales from small street kiosks. While many praise the initiative as helpful in improving public health, businesses appear set to challenge the legality of the move. The decision, adopted by the Kyiv city council on Dec. 23, specifically bans alcohol and tobacco sales in street kiosks that occupy less than 40 square meters – covering most of more than 10,000 such small business establishments operating in the city. The measure also forbids the sale of alcohol (except beer in plastic bottles) and tobacco during mass gatherings. However, entrepreneurs who run kiosks call the decision unlawful and protested outside the Presidential Administration on March 11, demanding that Viktor Yanukovych ask the prosecutor to review the legality of the decision. “Owners of big supermarkets obviously want to have a monopoly for alcohol and tobacco sales. Meanwhile these products account for most of the kiosks’ profit,” said Vadym Hladchuk, from the civil organization Molod – Nadiya Ukrajiny (Youth – Hope of Ukraine), who was among organizers of protest. Entrepreneurs say no public hearings were held on the matter and the decision contradicts 1996 rules for alcohol retail still in force today. According to those rules, alcohol sale is allowed in shops bigger than 20 square meters, not 40, as in the council’s action. Businessman Mykola Omelchuk says his small beer shop is under threat. “We have enough space, more than 20 square meters, so customers can come in and even take a seat. We sell quality beer and many customers appreciate the product,” Omelchuk said. However, city council members say they are constantly hearing complaints from concerned Kyivans – especially parents -- about the easy availability of tobacco and alcohol on the streets. While street sales of hard alcohol were banned many years ago, the measure
Ukraine's long tradition of allowing the sale of beer and other low-alcohol beverages, as well as cigarettes, from most of the city's 10,000 small kiosks may be coming to an end on April 1. The Kyiv city council adopted a sales ban over the objections of owners of small kiosks. The ban is expected to help keep these products away from children. (PHL)
would broaden the alcohol ban to include beer and low-alcohol beverages as well. “Kids manage to run to a nearby kiosk from school and buy cigarettes to smoke during breaks,” said Iryna Kovalchuk, who has a teenage son. “Supermarkets are probably easier to control so that they do not sell to kids under 18 and so that they do not sell counterfeit goods.” The Kyiv prosecutor said many kiosk owners break the law by selling alcohol and tobacco to children. “In 2010, 60 licenses for retail alcohol sale were revoked and 30 more were revoked during the latest check,” said Myroslava Mushka, a spokeswoman for the Kyiv city prosecutor. Members of the city council are
Æ Cheap, easily available cigarettes and alcohol sold from kiosks add to nation’s health woes sticking with their decision. “Alcohol and tobacco are not sold in kiosks in civilized countries,” said Oleksiy Davydenko, one of the authors of the ordinance. “Mostly it is young people and teenagers who buy beer and low alcohol drinks in kiosks, so kiosks simply fuel alcoholism among
youngsters.” Alcoholism has long been a problem in Ukraine. The nation is 5th in percapita alcohol consumption, according to the World Health Organization, with 15.6 liters consumed annually. Experts say consumption might be even higher, as many Ukrainians, especially in rural
areas, brew and consume moonshine. Ukraine is also among the world’s heaviest-smoking countries; more than 27 percent of adults smoking, according to WHO. Making Ukraine’s cheap cigarettes more expensive, through higher taxes, and out of easy reach of young people are keys to curbing the addiction that prematurely kills 100,000 Ukrainians every year. A prohibition on advertising and a ban on smoking in public places are two other effective methods of cutting smoking rates. And some experts note that the city’s kiosk ban is not enough. “Despite the legislation being quite adequate in Ukraine, with print and billboard advertising of alcohol forbidden, low prices for alcohol and tobacco make these products very affordable,” said Maksym Boroda, an expert from International Centre for Policy Studies. Public health activists also say authorities need to promote healthy lifestyles and legally recognize beer as alcohol, making it subject to advertising restrictions. “For example, football is being associated with beer, because in all commercials, we are being shown happy fans with beer bottles,” said Oleksandr Pocheketa from Tvereza Ukraina (Sober Ukraine) movement. However, other Ukrainian cities have also shown that action can be taken at a local level. City councils in western Ukrainian cities of Lviv, Uzhhorod and IvanoFrankivsk forbid the sale of beer and alcohol from 10 p.m. to 8 a.m. in all kiosks and shops, except for cafes and restaurants. Local police in Ivano-Frankivsk say that, since the ban went into effect in September, the number of crimes at night has decreased. One city official said the next step is to forbid the sale of alcohol and tobacco in kiosks within 500 meters of schools and kindergartens. “Our town is quite small, so that would include a great deal of kiosks anyway,” Ruslan Martsinkiv, secretary of the Ivano-Frankivsk city council, said. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.com
12 News
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March 18, 2011
Legacy of death, bad health lingers from Chornobyl blast (Reuters) – Any Ukrainian over 35 can tell you where they were when they heard about the accident at the Chornobyl plant. “I remember calling my husband. There had been rumors for days about a nuclear accident. We had even hung blankets on the windows to stop radiation because we didn’t know what to do,” said Natalya, a 46-year-old financial analyst in Kyiv, whose husband was a journalist on a daily newspaper. “He told me there had been a fire at the atomic plant in Chornobyl. That was for me the first confirmation that the reactor had collapsed,” she said this week, seated at her desk in her central Kyiv office. “We had no idea what to expect. It was awful.” As Japan battles to prevent a meltdown at its earthquake-hit Fukushima Daini nuclear plant, the people of Ukraine are preparing to mark the 25th anniversary of the world’s worst nuclear accident. The physical and financial legacies of that disaster are obvious: a 30-kilometer uninhabited ring around the Chornobyl plant, billions of dollars spent cleaning the region and a major new effort to drum up 600 million euros ($840 million) in fresh funds that Kyiv says is needed to build a more durable casement over the stricken reactor. Just as powerful are the scars that are less easily seen: fear and an abiding suspicion that despite the reassuring reports by authorities and scientific bodies, people may still be dying from radiation after-effects. While debate about the health impact continues, there is little doubt people in Ukraine and neighboring Belarus carry a psychological burden. Repeated studies have found that “exposed populations had anxiety levels that were twice as high” as people unaffected by the accident, according to a 2006 United Nations report. Those exposed to radiation were also “3-4 times more likely to report multiple unexplained physical symptoms and subjective poor health than were unaffected control groups.” There are, of course, crucial differences between Chornobyl and the disaster unfolding in Japan. The Chornobyl accident was the product of human error when a test was poorly executed, while the Japanese failure was triggered by an earthquake and tsunami. Chornobyl occurred in a secretive Soviet society which reformer Mikhail Gorbachev was only just opening up. The authorities embarked on an attempted cover-up and only partly admitted the truth three days later, denying themselves the chance of rapid international aid. Despite criticisms that Tokyo could be a lot more transparent, Japan’s disaster has taken place in a relatively open society. Most importantly, thick containment walls at the Fukushima Daini plant shield the reactor cores so that even if there was a meltdown of the nuclear fuel, it’s unlikely to lead to a major escape of radioactive clouds. At Chornobyl, there was no containment structure. “When it blew, it blew everything straight out into the atmosphere,” said Murray Jennex of San Diego State University. Despite those differences, though, the Chornobyl experience still contains lessons for other countries, says Volodymyr Holosha, the top Ukrainian Emergency Ministry official in charge of the area surrounding the Chornobyl plant. “We were not ready for it – nei-
The remains of the No. 4 reactor at the Chornobyl nuclear power plant after the April 26, 1986, explosion near at Pripyat. (UNIAN)
ther technologically nor financially,” Holosha said. “This is a priceless experience for other countries.”
Experiment gone wrong In the early hours of April 26, 1986, in the model Soviet town of Prypyat, a satellite of the much bigger Chornobyl, workers at a nuclear power plant demobilized the safety systems on the number four reactor, which had come on line only three years previously. It was a risky experiment to see whether the cooling system could still function using power generated from the reactor alone in the event of a failure in the auxiliary electricity supply. It could not. There was a massive power surge that blew off the reactor’s heavy concrete and metal lid and sent smoldering nuclear material into the atmosphere. Dozens of plant staff died on the spot or immediately afterwards in hospitals. Hundreds of thousands of rescue workers, including Soviet Army conscripts, were rushed to the site to put out the fires, decontaminate it and seal off the damaged reactor by building a concrete shell around it. At first, authorities denied there was a problem. When they finally admitted the truth more than a day later, many thousands of inhabitants simply picked up a few of their belongings and headed off – many of them to the capital of Kyiv, 80 kilometers (50 miles) to the south, never to return. Iryna Lobanova, 44, a civil servant, was due to get married in Prypyat on the day of the explosion. “I thought that war had started,” she said. “But the local authorities told us go on with all planned ceremonies. Nobody was allowed to leave the town until the official evacuation was announced on the Sunday” – 36 hours later – “following an order from Moscow,” she said. Lobanova went ahead with her wedding – and left the next day with her husband by train.
Legacy of bad health The makeshift concrete shelter hastily thrown up in the months after the explosion is often referred to as a “sarcophagus,” a funeral term made even more fitting by the fact that it houses the body of at least one plant worker who rescuers were unable to recover. The official short-term death toll from the accident was 31 but many
more people died of radiation-related sicknesses such as cancer. The total death toll and long-term health effects remain a subject of intense debate. “(The disaster) brought suffering on millions of people,” said the Emergency Ministry’s Holosha. “About 600,000 people were involved in mitigating the consequences of the accident. About 300,000 of them were Ukrainians. Out of those, 100,000 are disabled now.” A 2008 United Nations study cited a “dramatic increase in thyroid cancer incidence” in Ukraine and Belarus. Children seemed to be especially vulnerable because they drank milk with high levels of radioactive iodine. “One arrives at between 12,000 and 83,000 children born with congenital deformations in the region of Chornobyl, and around 30,000 to 207,000 genetically damaged children worldwide,” German physicians’ organization IPPNW said in a report in 2006. Those figures are far lower than health officials had predicted. But a 2009 book by a group of Russian and Belarussian scientists published by the New York Academy of Sciences argued that previous studies were misled by rigged Soviet statistics. “The official position of the Chornobyl Forum (a group of UN agencies) is that about 9,000 related deaths have occurred and some 200,000 people have illnesses caused by the catastrophe,” authors Alexei Yablokov, Vasily Nesterenko and Alexei Nesterenko wrote in “Chernobyl." “A more accurate number estimates nearly 400 million human beings have been exposed to Chernobyl’s radioactive fallout and, for many generations, they and their descendants will suffer the devastating consequences.’ The authors argued that the global death toll by 2004 was closer to 1 million and said health effects included birth defects, pregnancy losses, accelerated aging, brain damage, heart, endocrine, kidney, gastrointestinal and lung diseases. "It is clear that tens of millions of people, not only in Belarus, Ukraine and Russia, but worldwide, will live under measurable chronic radioactive contamination for many decades," they wrote.
occurred within the so-called Exclusion Zone, a circular area around the power plant with a radius of 30 kilometers (19 miles) that has been deemed unsuitable for living. Several villages and a whole pine forest in the zone were bulldozed and buried shortly after the disaster. Other small settlements are overgrown with trees and bushes that have made the red and white brick houses barely visible. Prypyat, built to house Chernobyl power plant workers and their families and with a bright future ahead of it as a model Soviet ‘atomgrad’ town, had a pre-disaster population of 50,000. Now it is a ghost town that greets its rare visitors with eerie silence. A shop building in the center is full of rubble and broken furniture - remnants of years of looting which the government could not prevent and which spread hazardous substances across the country. A portrait of Soviet state founder Vladimir Lenin lies on the floor, covered by a thick layer of dust. At a children’s amusement park, a Ferris wheel due to be launched less than a week after the disaster is rusting away. Prypyat’s residents, mostly young families, were evacuated in a six-hour operation which began more than 36 hours after the accident. In the days that followed, as the fallout was driven by a south-east wind across neighboring Belarus, the Soviet government evacuated thousands of people from other areas under threat. “We were evacuated on May 4,” said Makar Krasovsky, 73, who lived in the Belarussian village of Pogonnoye 27 km (17 miles) from the plant. “Children had been evacuated earlier, on May 1. Nobody knew anything. Nobody told us anything.” “We were told to take with us clothes for the next three days but nothing else because everything was contaminated. They promised us the reactor would be shut down and we would return in three days," he said. Pogonnoye is still sealed off and visits are only allowed once a year - on a day when local Orthodox Christians attend the graves of their ancestors.
Sealed-off zone
Financial burden
The
most
severe
contamination
The accident prompted former
Socialist bloc nations to shut down reactors of the same design. But the Chirnobyl plant itself kept running until 2000 when Ukraine agreed to shut it down in return for aid. The European Commission and international donors have since committed about 2 billion euros to projects aimed at cleaning up the area and securing the plant. Another 740 million euros remains to be raised: 600 million for the new casement and 140 million waste storage. Holosha says Ukraine itself has spent much more. Since Ukraine gained independence after the collapse of the Soviet Union, $12 billion has been spent on dealing with the consequences of the accident, he said. “Most of the expenditures were linked to maintaining the exclusion zone and providing healthcare and social assistance to those who had lived in the affected area.” The key new project at the plant is the construction of the so-called New Safe Confinement – a massive convex structure which will be assembled away from the damaged reactor and then slid into place over the existing sarcophagus. The original concrete tomb was built hastily, is supported in part by the damaged walls of the reactor building, and has already had to be reinforced. The new structure is designed to last 100 years and should allow the reactor to be dismantled without the risk of new contamination. The project requires 600 million euros ($840 million) in additional financing and is likely to miss the 2012 completion target by a few years due to problems such as radioactive debris encountered during excavation works. Ukraine hopes to raise most of the funds at an international donors conference set to take place in Kyiv next month. Officials say Ukraine is likely to spend billions of euros on confinement upkeep costs before it finds a way to bury the reactor components, perhaps under layers of underground granite rocks. Even then the area around the plant will remain unsuitable for thousands of years. Asked how long before people can settle down at the site, Ch0rnobyl power plant director Ihor Gramotkin said: “At least 20,000 years.”
Political fallout Despite the scale of the Ch0rnobyl disaster, both Ukraine and Belarus still rely heavily on nuclear energy, having no developed hydrocarbon resources. In the coming months, both plan to borrow billion of dollars from Russia to finance the construction of new reactors of Russian design. The disaster and the government’s handling of it highlighted the shortcomings of the Soviet system with its unaccountable bureaucrats and entrenched culture of secrecy. Journalists subsequently uncovered evidence that the children of Communist apparatchiks had been evacuated well before others and some staff died at the plant because they had not been given orders to leave. Mikhail Gorbachev has since said he considered the disaster one of the main nails in the coffin of the Soviet Union which eventually collapsed in 1991. The nuclear disaster in Japan is unlikely to break the country's political system. But Tokyo should not underestimate the profound power of a nuclear meltdown - physical and political.
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News 13
March 18, 2011
A man wears two signs -“Chornobyl – 25 years� and “Warning Radioactive Breathers� takes part in a rally on March 16 organized by Ukrainian Chernobyl Union and the Chornobyl Invalids Union in front of Prime Minister Mykola Azarov’s office. Liquidators of the 1986 nuclear catastrophe are demanding that the government maintain their social benefits while the cabinet plans to cancel them. Demonstrators also expressed their solidarity with the Japanese people following blasts at the earthquake-damaged Fukushima Dai-ichi nuclear plant. (AFP)
Disaster in Japan triggers furor over nuclear power Æ1 ment monopoly designed and helped build several plants in China, India and Bulgaria during the 2000s and has announced plans to construct more in India, Slovakia, Turkey, Jordan and Morocco. But many plans are now under review or being suspended in the wake of the disaster at the Fukushima Daiichi nuclear complex in Japan, the March 11 earthquake and tsunami that threatens the plant’s reactors with a radioactive meltdown. While European countries are unlikely to see a similar earthquake, a tradition of anti-nuclear industry activism in a number of European countries and contemporary political dynamics could slow down the post-Fukushima construction of new power plants. So far, Ukraine’s government has given no indication it will reconsider plans to sharply increase its number of nuclear reactors by 2030 from a current 15, as provided for in the country’s energy strategy adopted in 2006. Laurin Dodd, who helps to manage a project to build a shelter for the damaged Chornobyl reactor, said that nuclear energy will always carry big and uncertain risks. “You cannot reduce to absolute zero the possibility that something can go wrong,â€? Dodd said. “You have to do nuclear power right, but even when you do it right – and the Japanese may very well have done it right – accidents still happen.â€? According to international experts, the situation in Japan is still less dire, from the standpoint of radiation released, than the explosion at the Chornobyl power plant 25 years ago this April. But Japan’s problems are close and still uncontained. So far, four reactors at the Fukushimi plant are in danger of meltdown and all have experienced hydrogen explosions. There are confirmed reports that radiation is leaking from the plant while elevated levels of radiation have been measured in Tokyo. While Germany and Switzerland have reconsidered the use of nuclear power, Ukraine has decided to increase its dependence on its 15 water-cooled reactors at four nuclear power plants that currently generate about half of the nation’s electricity. Construction
of two more nuclear reactors at the Khmelnytsky nuclear power plant resumed last year and are scheduled to come online in 2016 and 2017. The government in February signed an agreement with Russia’s staterun Atomstroyexport, a subsidiary of Rosatom, to complete the work. Russian banks will largely finance the project, giving Ukraine a 3.4 billion euro loan that has to be paid back within five years after the new reactors go into service. Belarusian President Aleksander Lukashenko inked a similar deal with Russia on March 16 to build a nuclear power plant on its border with Lithuania. During the signing ceremony in Minsk on March 16, Putin said that the final contract would be hammered out in the next month to provide at least $6 billion of the total required in loans. The billion-dollar projects will likely anchor the countries even further in Russia’s political and economic orbit, according to critics, who say Ukraine and Belarus will depend on Russian nuclear fuel to power the new reactors. “If Japan can’t control its nuclear reactors, making European countries uneasy, then what can we expect to happen in Ukraine, where all reactors in operation are obsolete,� Dmytro Khmara, a nuclear expert for Ukraine’s National Ecological Center, said. “In order to modernize energy production safely and economically, we should, step by step, take the old reactors offline and develop new modern sources of energy,� he added. Worldwide, the trend is the same, with some 62 new nuclear reactors under constructions, another 158 planned and proposals for yet another 324 more. According to Prime Minister Mykola Azarov, there is presently no alternative to nuclear energy use in Ukraine. “Only rich countries can afford to discuss the possibility of closing [nuclear power plants],� he told journalists in Istanbul, Turkey, on March 15. Dodd expressed a similar view, saying the benefits of electricity produced by nuclear reactors still outweigh the
potential risk of another disaster. “I feel very badly for the Japanese. Even though the nuclear power plants which broke down [in Fukushima] are rather old units, the Japanese were using them safely and the systems worked ‌ until the tidal wave rolled in.â€? Most experts say a combination of human error and design flaws caused the accident Chornobyl on April 26, 1986, when a reactor exploded spewing radiation over Belarus, Ukraine and Russia, most of Europe and beyond. Some 50 workers died fighting the fire and meltdown of the reactor core, while another 4,000 deaths resulted from exposure to excessive radioactivity. More than 135,000 people were evacuated from the area, including the nearest town of Prypyat, immediately following the accident, and another 200,000 over the ensuing months. The Soviet-designed RBMK (reaktor bolshoy moshchnosty kanalny, highpower channel) built in Chornobyl was a pressurized water-cooled reactor with individual fuel channels that used graphite as its moderator, unlike the boiling water reactors currently used in the Fukushima Daiichi plant. Japanese nuclear expert Dr. Yoshio Matsuki said the fundamental difference between the Chornobyl and Fukushima Daiichi plants is the containment vessel housing the Japanese reactors. At Chornobyl, there was no containment structure. “The nuclear fuel was ejected into the atmosphere when the reactor exploded. The Fukushimi plant has several additional safety features, such as the containment structure housing the reactor,â€? he said. In addition to making electricity, the Chornobyl nuclear reactor was also designed to produce weaponsgrade plutonium, according to Zakhar Byelotserkovsky, who for almost 30 years (1974-2003) worked as the chief design supervisor for the Ukraine’s Rivne nuclear power plant. He blamed the curiosity of Kharkiv engineers for contributing the 1986 meltdown at the plant. “They wanted to find out how long the stations steam turbines could keep spinning after powering down.
This image from Tokyo Electric Power Co. via Kyodo News, shows the damaged No. 4 unit of the Fukushima Dai-ichi nuclear complex in Okumamachi of northeastern Japan on March 15. White smoke billows from the No. 3 unit. (AP)
The safety systems shut down during the ‘experiment,’� he said. Byelotserkovsky, 75, said Soviet engineers in the late 1960s came to the conclusion that it was unsafe to build a safe nuclear power stations in seismically active zones. When his colleagues at UralTeploProekt proposed building an underground nuclear reactor on Russia’s Kamchatka peninsula, the geologists threw a fit, he said. Plans to build a nuclear reactor in Kazantip, Crimea were also nixed because earthquakes measuring 8 on the Richter magnitude scale are also possible there. “While there is no one alternative to electricity generated by today’s nuclear power plants, we should make it a priority to develop environmentally safe sources of energy,’ he said. “Some countries, such as Norway, can
generate enough electricity for their domestic needs using hydropower, but not Ukraine, which is relatively flat. Unlike the Netherlands, Ukraine also can’t erect tens of thousands of wind turbines to produce enough electricity. Hydroelectric power stations built on the Dnipro River during Soviet times destroyed colossal amounts of arable land, killing flora and fauna.� Dodd agreed, but said it will likely take decades for Ukraine to phase in alternative sources of energy. “It is unlikely this will happen in our lifetimes. Indeed, our children and our grandchildren will no doubt have to rely more on electricity generated by nuclear energy than we do today,� he said. Kyiv Post staff writer Peter Byrne can be reached at byrne@kyivpost.com
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14 News
www.kyivpost.com
March 18, 2011
Ukrainians recall Chornobyl sacrifice, applaud Japan Reuters – If there is one person outside Japan who knows what the crisis workers at the Fukushima nuclear plant are going through now it is 64-year-old Andriy Chudinov. One of the first Chornobyl troubleshooters to get to the disaster site of the world’s worst nuclear accident in 1986 and a rarity in that he survived, Chudinov looks back on those traumatic events with calmness, sadness and resignation. He generously applauds the workers who are fighting to bring Japan’s quake-damaged nuclear reactors under control. “These are good guys. After all, they have had it even worse than we did. They had a tsunami first and now there are several reactors with problems. That’s a nightmare for any atomic worker,” he told Reuters on March 16. It remains to be seen whether the Japanese drama will take on the proportions of Chornobyl, when tons of nuclear material were spewed across Europe after an explosion and fire at the plant’s No. 4 reactor. The world was different then. It was the Cold War when Ukraine was part of the secretive Soviet Union and Moscow withheld the truth about the disaster for three days. Chudinov was one of a huge army of workers – many of them soldiers – whom Soviet authorities sent in to tackle the Chornobyl disaster which resulted from a test of cooling systems at the plant. The experiment, which involved demobilizing safety systems, went horribly wrong and a series of explosions in the early hours of April 26, 1986, blew the concrete roof off the reactor and sent radioactivity billowing across Europe. Those drafted in to handle the crisis at risk to their own lives became known as the “liquidators.” Chudinov was a senior operator at reactor No. 3 – next to the stricken reactor – at the plant at Prypyat on Ukraine’s northern border with Belarus. “We got to the plant in the morning after the explosion. The unit (No. 4)
Æ Workers sent in to fight fire in Chornobyl have great sympathy for Japan was destroyed and burning. But there was no reason not to go,” he said in a telephone interview. “We did basically the same as the Japanese are doing now. We tried to stop the reactors. If the fire had spread, the plant would have been uncontrollable.” “From my shift there was not one of my friends who refused to go. It was a question of duty. We knew it was dangerous but we were brought up differently and we didn’t even think of not going,” Chudinov added. Back then, there was little protective clothing to hand to shield against radiation. “We wore normal clothes and a face respirator. As we went in to the reactor we were given an iodine preparation which was normally the first emergency aid,” he said.
Blood illness The official short-term death toll from the accident was 31 but many more people died of radiation-related sicknesses such as cancer. The total death toll and long-term health effects remain a subject of intense debate even 25 years after the disaster though a U.N. 2008 report concluded that only a few thousand people had died as a result. On pension now and suffering from a blood condition which he attributes to radiation effects, Chudinov says: “I lost many, very many, friends. I haven’t counted but an awful lot of them are
A man is screened for radiation exposure at a shelter after being evacuated from areas around the Fukushima Daiichi nuclear plant in Japan which was heavily damaged after a major earthquake and tsunami on March 11. Japanese officials were still on March 17 trying to dump water on an overheated reactor to avoid meltdown. (AP)
no longer here. I don’t know why I survived. Radiation reacts differently on different people,” he said. Nadezhda Mironenko’s husband, Valentin, was then a 38-year-old carpenter whose firm worked at the Chornobyl plant. He went to the plant to help in the clear-up operation a month after the explosion and remained working in what is now a 30 kilometer (18 miles) exclusion zone around the site until 1992. He died five years later of brain cancer at the age of 49. “I knew when I accompanied him to work that there was no alternative. One had to go and do one’s job. We
had that expression – duty to the Motherland,” Mironenko, 62, who now lives on pension in Kyiv, told Reuters. Chornobyl “liquidators” and their families have benefitted from tax breaks, cheap re-housing, enhanced pensions and other privileges over the years. But the Japanese drama, evoking memories of 1986, brought 200 or so Chornobyl protesters out in Kiev on March 16 to complain about government neglect. Mikola, 64, was a Soviet army officer drafted in with his unit to help the Chernobyl clean-up and was one of a group of protesters outside the Ukrainian government building.
“The general came and said: ‘I would rather have 2,000 poisoned (with radiation) if it allows 200 million people to live. We have been sent to work at the reactor’,” he said recalling the day he learned he was being sent to the Chernobyl plant. Half of his military unit died from the consequences, Mikola said. Another protester, Vladimir Danilenko, 65, who worked as a fireman at the stricken plant, complained bitterly about the government. “They cancelled our free treatment. They cancelled our free medicine. They have thrown us aside and don’t care. That’s the big difference between us and Japan.”
www.kyivpost.com
March 18, 2011
Citing undemocratic process, U.S. group withdraws from effort to redraft election law BY Y U R I Y ON YS H K I V ONYSHKIV@KYIVPOST.COM
The National Democratic Institute, an American nongovernmental organization that promotes democracy, withdrew on March 17 from a Ukrainian working group developing a new election law. NDI, in ending its participation, said it was protesting the group’s non-inclusiveness in developing a new election law after local elections in October did not meet democratic standards. “NDI has decided it must suspend its participation in the group unless steps are taken to make the entire election law drafting process more inclusive and transparent,” Laura Jewett, NDI’s Eurasia regional director, said in a letter to Justice Minister Oleksandr Lavrynovych. “Unless they are addressed, the election legislation that results will lack the confidence of the public. This in turn, will set back, not advance, the goal of democratic elections.” Lavrynovych disagrees, saying that the group's work is "open and takes into consideration different argumentative opinions." Knowledgeable sources, who requested anonymity because they were not authorized to speak publicly, said that International Republican Institute, another U.S. nongovernmental organization, may be the next organization to pull out of this working group. Such a pullout could deepen criticism that President Viktor Yanukovych, since taking power more than a year ago, is reversing democratic progress. Yanukovych’s democratic credentials, never strong, suffered after October elections criticized as not meeting democratic standards. The Yanukovych administration is also criticized for favoring postponement of parliamentary elections to 2012, instead of 2011. In an opinion piece published in the Kyiv Post on Feb. 25, NDI’s director in Ukraine, Kristina Wilfore, wrote that “last fall’s local elections were a great disappointment for many non-partisan election watchers who had hoped that bad elections in Ukraine were a thing of the past. Unfortunately, three months into the reform effort, the president’s initiative looks to be equally disappointing.” Yanukovych countered such criticism by starting the working group in November to bring the electoral legislation in line with international democratic standards. Besides Lavrynovych, other members include: deputy presidential administration chiefs, Andriy Honcharuk and Olena Lukash; director of the National Institute for Strategic Studies, Andriy Yermolaev; chairman of the Central Election Commission, Volodymyr Shapoval; CEC member Mykhailo Okhendovskiy, parliament deputy Volodymyr Pilipenko, and Ukrainian civic network OPORA. The press service of Ukraine’s Justice Ministry reported on March 16 that the working group had completed its concept of a future law on parliamentary elections. “According to the minister, the concept of law was developed with the participation of representatives of all parliamentary factions, as well as deputies belonging to no faction, and representatives of international and domestic NGOs,” reads a statement issued by Lavrynovych’s press service. But sources close to the working group said that many of its members have not seen the draft legislation, nor have their suggestions been openly welcome.
Yanukovych must decide between Soviet-style rule or true democracy A MA NDA PAUL
Justice Minister Oleksandr Lavrynovych
Okhendovskiy, seen as loyal to Yanukovych, defended the process, saying: “At the working group meeting, members discussed only the main aspects that should be taken into account in preparing the new version of the parliamentary election law. The text of the law itself was not discussed. The text of the law will be prepared taking into account proposals expressed during the group’s meetings.” Olga Ayvazovskaya, OPORA’s chairperson, says she does not consider the current law on parliamentary elections to be bad. “It was much better than the law on local elections,” said she, adding that the law can be improved by adding European style open party lists, which is a proportional system of elections when people are can influence party list ranking then supporting a party by voting for a specific candidate in its list. “It looks like there is political will to introduce mixed electoral system because it is advantageous to Party of Regions.” In the opinion piece published in the Kyiv Post last month, NDI’s Khristina Wilfore wrote: “The government, which formed this election law drafting commission unilaterally, has not fully welcomed major opposition parties or non-partisan civic organizations. While some members of the opposition and civil society have been included during later meetings of the working group, their belated participation is not a substitute for substantial involvement. Furthermore, the working group remains a heavily pro-government body.” She added: “As for transparency, debate, deliberation and drafting – the group’s central functions – are going on behind closed doors, where participants lack the ability to make real decisions. At the first meeting, those gathered were told that the president would make all decisions on the new law and that its basic structure had already been determined and was non-negotiable. Group members also learned they could not suggest topics for discussion or be informed on how topics were chosen. There have been no drafts to review and no explanation of how the group’s comments are being integrated into the drafting process.” Wilfore concluded: “In a Jan. 30 interview with The Washington Post, Yanukovych pledged his intention to hear a broad range of international and domestic voices as part of the reform process, which NDI and others applauded. But that seems to have fallen on deaf ears.” Kyiv Post staff writer Yuriy Onyshkiv can be reached at onyshkiv@kyivpost. com
News/Opinion 15
Just over a year since ViktorYanukovych became president, he stands accused of all sorts of unpleasant things, with hundreds of articles and newspaper columns being penned by Ukraine experts and others offering a one-year report card. Some have compared media freedoms in Ukraine to China and Iraq, while others have demanded the international community place sanctions on Yanukovych, comparing him to the Belarusian leader Aleksandr Lukashenko on whom the European Union recently slapped a travel ban. Not surprisingly Yanukovych and his team tell a different story. They continue to claim that the West is being tricked by opposition leader Yulia Tymoshenko and the government is the victim of a very successful public relations campaign. They say they are guilty of nothing more than putting Ukraine back on a solid footing and in order to do this they had to consolidate power. As a result of this consolidation, difficult reforms are being tackled in many different areas. At the same time Ukraine’s leadership achieved a more balanced and harmonious foreign policy including strengthening relations with both the European Union and the United States and moving to a more normal relationship – albeit not overly warm – with the Kremlin. They also claim that serious steps to tackle Ukraine’s epidemic corruption are being made, whether this is at the highest political level or a lowly traffic cop – although the process seems to be obsessed with Tymoshenko. Looking at progress, it is clear that reforms have taken place; many more than were made under the previous government. Improvements in economic policy and performance are undeniable. There have been improvements in the gross domestic product and the renewed cooperation with the International Monetary Fund demonstrates a higher level of fiscal responsibility. Ukraine is now stable and seems likely to remain that way. However, stability is not everything. Implementation of many reforms remains rather patchy; to be credible reforms cannot simply exist on paper. Considerable problems with the judicial system also remain, which continues to suffer from external political influence with not much changing since the Soviet days. However, this was pretty much the same in the days prior to Yanukovych’s entry to office. Furthermore a more inclusive approach on several sensitive and controversial issues, such as tax reform, the Black Sea Fleet, the cancelling of constitutional reforms, would have been a wiser policy. While there has been considerable concern over a reported deterioration
ÆEvents in Arab world clearly demonstrate that it’s a precarious time to be an autocratic leader; strongmen will eventually be brought down by people power in the state of media freedoms – one of the few achievements of the 2004 Orange Revolution years – for the time being there still seems to be reasonably balanced coverage with lively political debates with television shows continuing to take place for hours at a time. There are also regular street protests, demonstrating that the right to assembly remains strong and is not restricted by the government. Civil society, while still quite young, continues to function actively. The new law on access to public information gives reporters and citizens alike much broader rights to information about what the government is up to, although once again it needs to be properly implemented. However, it is crucial that standards are not allowed to slip, so close monitoring of the situation remains imperative. Overall, 2010 turned into something of a contentious year for the president; a year that has polarized Ukraine and increasingly the West into two camps -- those who see his leadership as the beginning of the end for democracy in Ukraine and those who are willing to give him the benefit of the doubt and wait and see what the next six months or so brings. Indeed, some in the latter group seem more interested in maintaining stability than whether or not Ukraine maintains high levels of democracy. Nobody apart from the president himself knows what his true intentions are, or to what degree those around him are able to cajole him into certain things. Yanukovych came to power well aware that he was viewed as a controversial character. In light of this he has always given the impression that he wants to shake off this image and be seen as a credible and reliable leader and partner both at home and abroad. He almost certainly does not want to be seen as the man that destroyed democracy in Ukraine and returned it to the Leonid Kuchma era (president from 1994-2005) – or worse. However, so far he has not achieved this. Furthermore, if Yanukovych had the intention to create an autocratic, centralized system of power, giving oligarchs preferential treatment, he could not have picked a worse time. Events in the Arab world clearly demonstrate that it’s a precarious time to be an autocratic leader, so for
Yanukovych to wish to turn himself into one would be irrational. These days no such leader is safe, whether in the Arab world or elsewhere. The fear of being faced with burly security forces is no longer enough to keep people silent. Modern technology such as Facebook and Twitter are creating societies which leave no leader untouchable. Strongmen leaders will have to open their minds to the fact that they will either have to change the way they do things or they will be brought down by people power, sooner rather than later. Therefore, for Ukraine it seems unthinkable that a population which stood in the freezing cold a mere five years ago will now just stand back and allow democracy and freedoms to slip away. Furthermore, while comparisons to Belarus are absurd – Ukraine remains in a totally different league and is still much freer than Russia – international fears should be dealt with. Yanukovych should use 2011 to meet concerns over the perceived negative trends in the country. A good start would be to tackling Ukraine’s pandemic corruption in a way that reduces concerns about politically motivated persecution and start to make some strides in reforming the criminal justice system. Demonstrating a zero-tolerance approach to torture and human rights violations – including by security forces, a regular occurrence both inside and outside the prison system – would also be a positive. A deep and intensive reform program needs to be continued and carried out in an inclusive way, with reforms being fully implemented. And lastly the development of a new constitution also needs to include all elements of Ukraine’s political life and society without exception. The question Yanukovych needs to ask himself is whether he wants to help Ukraine transform into a modern European state which strongly desires to be part of the EU, as he himself has said on many occasions, or whether he wants to be labeled as the man guilty of returning the country to a Soviet style of leadership. He has nothing to gain from the second scenario but plenty from the first. Amanda Paul is a policy analyst at the European Policy Center, a Brusselsbased think tank. She can be reached at a.paul@epc.eu.
16 Opinion
www.kyivpost.com
March 18, 2011
Viktor Yanukovych: A man of the oligarchs O L G A S H U M Y L OTA P I OL A
When he took office on Feb. 25, 2010, President Viktor Yanukovych declared that Ukraine’s high standing in international ratings of democracy and political freedoms would be carefully nurtured. Moreover, he promised to deliver the stability and reforms that many in Ukraine and the West had long awaited. A year on, however, there is widespread concern that Yanukovych’s policies are rolling back the country’s political freedoms. Some are advocating a “wait-and-see” approach, for fear of alienating Ukraine and pushing it closer to Russia. However, the question remains whether the biggest threat to Ukraine really comes from the outside. Yanukovych is not an ideological leader, and doesn’t have an evil plan to subvert Ukrainian democracy. Nor, however, does he seem to want to improve the lives of average Ukrainians. His goal appears to be that of creating a system that will allow him and his network of oligarchs to gain
and consolidate control over Ukraine and its assets. Although wealthy businessmen were influential in Ukraine in the mid-to-late 1990s, President Leonid Kuchma managed to keep them under control, guaranteeing the dominance of national interests over corporate ones. When Viktor Yushchenko came to power in 2005, he brought another group of big businessmen closer to the circles of power, disrupting the established monopolies. Now, under Yanukovych, the older interest groups and some newer people close to him are trying to reverse the Yushchenko-era developments, and to ensure that their interests are not subject to the oversight of a strong president. Creating a political system that so singularly benefits the tiny elite, however, will not be easy in today’s Ukraine. Many Ukrainians have already become accustomed to democratic freedoms and will not be willing to give them up. Nor will they be willing to pay for measures that will ultimately benefit only oligarchs. After the political infighting of 20052009, the fact that the president, the government and the parliament are acting in concert could be considered a positive step for achieving stability in Ukraine. Yet very few Ukrainians
President Viktor Yanukovych (foreground, second from left), Ukrainian billionaire Rinat Akhmetov (to Yanukovych’s left) and Deputy Prime Minister Borys Kolesnikov (second row, far right) gather with supporters at the Party of Regions convention in 2009. (Yaroslav Debelyi)
wanted this stability to be the result of a consolidation of power within a limited circle. When voting for Yanukovych in 2010, Ukrainians thought they were electing a president with limited powers. However, in the fall of that same year, the Constitutional Court returned Ukraine to a presidential republic. The authorities cemented this transition, significantly diminishing the role of the parliament and placing the government under presidential control. Yanukovych’s argument that he needs additional power to implement long-awaited reforms rings hollow. In February 2010, Yanukovych already had a sufficient majority in parliament to replace then Prime Minister YuliaTymoshenko’s government. Furthermore, the president quickly appointed new heads of regional administrations loyal to him. This alone would have been enough to push through reforms, had real reforms been Yanukovych’s main goal. The return of the International Monetary Fund to Ukraine was a success for Yanukovych, and the country is now experiencing an economic recovery. However, growth cannot be attributed solely to the government’s actions. Indeed, the presidential administration has offered little strategic thinking on economic governance and the implementation of the reforms suggested by the Committee on Economic Reforms has been patchy and driven by vested interests. The reform of Ukraine’s political system is being driven by a similarly biased set of interests. This is evident in the fields of judicial, electoral, and administrative reform. There is growing evidence that the judicial system is becoming increasingly biased towards a small group of people. Reform of the public administration is enabling the president to entrust control of most key political and economic sectors to members of his entourage. Yanukovych’s muchvaunted fight against corruption seems similarly skewed, and there is little
doubt among Ukrainians that the process is politically motivated. There have even been significant regressions in those domains where concrete progress had been made since the Orange Revolution. Between 2005 and 2009, Ukraine won praise for the steps that moved it toward electoral democracy. However, the new law governing local elections in October 2010 gave rise to international concern, and the process was seen as a major step back. Progress that was made towards freedom of the press now also seems to be evaporating. Censorship by private media owners is increasing and is being coupled with self-censorship on the part of journalists fearful of the growing might of the authorities. Yanukovych has received a number of “yellow cards” from the West for the biggest regress in democracy in Eastern Europe. This is reflected in the overall atmosphere in Ukraine. The prosecution of members of the opposition and the harassment of journalists and public intellectuals has created an atmosphere of concern and perhaps even fear. Yet, in responding to international criticism, the president and his team appear to be operating in a parallel reality. They attempt to reassure the public and the West with legalistic arguments, but demonstrate little or no understanding of the spirit of democracy. Yanukovych, however, continues to crave acceptance in both the West and Russia. Yet he consistently misunderstands both. He thought the EU would be satisfied with a superficial view of democracy, not perceiving the union’s genuine desire to see a comprehensive reform process. He expected Russia to be pleased with symbolic concessions, but ignored Moscow’s strategic objectives in the post-Soviet space. There is, however, another side to Yanukovych, one that neither needs nor can afford to focus on image. This facet of the president is concerned with power and control. Remaining in power for as long as possible and
consolidating this power is the key to Yanukovych’s survival and the vested interests backing him. However, one cannot identify strictly good or bad individuals in Yanukovych’s entourage. Politics becomes situational, with the chosen line reflecting the point where the interests of the oligarchs intersect. At the time of Yanukovych’s election, experts tended to believe that internal competition among the oligarchs loyal to the Party of Regions would guarantee a degree of pluralism. However, the current situation in Ukraine would suggest that these elites do not wish to expose themselves to the uncertainty of democracy. They see the consolidation of a presidential system around Yanukovych as a way of ensuring this. The president and his team are, therefore, caught between the shortterm economic imperative of keeping the economy afloat and their mediumterm strategic goal of consolidating a system beneficial to the oligarchs. They are trapped between the West, the public, the oligarchs, and, rather unsurprisingly, Russia. Looking ahead, it is likely that Yanukovych’s strategy will become increasingly difficult to sustain. Attacks on Ukraine’s democracy are likely to elicit a strong reaction from the West and therefore greater Russian involvement in the country. The improvement of the overall Ukrainian economic situation may also divert popular attention away from day-to-day economic concerns and lead to public discontent. The question remains to what extent the current political set-up in Ukraine can withstand this pressure while faced with the risk of becoming increasingly ostracized both internationally and domestically. Olga Shumylo-Tapiola is a visiting scholar at Carnegie Europe in Brussels, where her research focuses on European Union and Russian policy toward Ukraine, Moldova and Belarus. She is a member of the supervisory board and former director of the International Centre for Policy Studies in Kyiv.
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Raisa Bohatyryova
Opinion 17
March 18, 2011
Hanna Herman
Nina Karpacheva
Oleksandra Kuzhel
Yulia Tymoshenko
Kateryna Yushchenko
Ostapenko: Ukrainian women should step out of shadows Æ4 with the first lady’s seclusion. There are simply no women in the current Ukrainian Cabinet of Ministers. At the government’s official website at http://www.kmu.gov.ua, you will see a lot of well dressed and rather serious looking men, but not a single woman. If we carefully rake through all the three branches of power in Ukraine, we will obviously find a few women - the ombudsman Nina Karpachova, who has been in office since President Leonid Kuchma’s times, Raisa Bohatyriova, chair of the National Security Council, who probably lost the current president’s favor because of her participation in the previous Orange government of Yushchenko and Tymoshenko. And there is also Hanna Herman, a loyal Sancho Panza of Viktor Yanukovych, but
Clara Zetkin
all she got after the election was a position as deputy head of the Presidential Administration. However, none of these women has a seat in the Cabinet. It is not that Ukraine does not have strong female politicians. To name a few, we have Oleksandra Kuzhel, who is not afraid to openly talk about corruption in Ukraine and its negative impact on Ukrainian business and investment. Not only she was removed from the government, but her agency was permanently closed, so that she would never return. And then we have Tymoshenko, who is being prosecuted under selective justice principles by the Ukrainian legal system. March 8 or not, some Ukrainian men have stopped acting like gentlemen around her. With so few
Getmanchuk: Western leaders should know that Yanukovych needs them Æ5 only because of the fact the 27-nation bloc has a hard time taking a unanimous position. The other reason is that Ukrainian policymakers believe that “big money” can influence EU representatives. If authorities did not manage to “buy” a positive resolution from the European Parliament, they gained favor through expensive dinners and cordial conversations with individual members of the European Parliament. It is generally assumed in Kyiv that money works with professional EU politicians while, in the U.S., money only helps with individual professional lobbyists. The other advantage of the United States is that it has always been distant from former Prime Minister Yulia Tymoshenko, the symbol of the 2004 Orange Revolution, and the most irritating factor for the current Ukrainian administration. Tymoshenko’s disappointment with Washington, however, is no less than that of President Viktor Yanukovych. That is why the U.S. is perceived in Kyiv as an unbiased actor, whereas the many statements and actions taken by Brussels are seen through the lens of partner cooperation of the Bloc of Yulia Tymoshenko with the European People’s Party. And last but not least, Washington has always placed the emphasis on the democratic development of Ukraine, while many EU members in the last
Æ West should seek to extract agreements five years have focused on political stability and maintaining good relations with Russia. The Ukrainian government claims it has successfully met both of these imperatives. So the EU, to a certain extent, has no real ammunition. While the EU has doubts about Ukraine’s membership aspirations, Ukraine also doubts the sincerity of European considers about Ukraine’s undemocratic trends. Some in Ukraine think the concerns are a convenient way to postpone talks about EU membership. As for the U.S., Harvard University professor Joseph Nye rightly pointed out recently what WikiLeaks made clear: American diplomats talk about democratic values not only in public, but also in private conversations. The Ukrainian authorities have always found such talks about democratic values odd, but peculiar to Americans. To hear such talks from the Germans or the French would be very odd indeed for Ukrainians. Ukrainians think
these nations are not as interested in promoting democracy as they are in investment climate and political stability. Moreover, Yanukovych still badly needs continuous political dialogue with key Western leaders and U.S. President Barack Obama in particular. The logic is clear: the better relations Yanukovych has with the West, the more confident he feels in relations with the East. The U.S. should keep this in mind. A relevant example is the candidacy of the U.S. representative at the big conference dedicated to the 25th anniversary of the Chornobyl tragedy, scheduled to take place in April in Kyiv. It would be great if U.S. Vice President Joe Biden could pay such a visit, provided that some preconditions are met by the Ukrainian government. One such precondition could be reconsideration of the pre-trial jailing of opposition politicians (including the former head of the customs service and former interior ministry, among others). They should be released on their own recognizance and pledge not to leave the jurisdiction. Another precondition could be the approval by the Verkhovna Rada of an election law ensuring equal representation of all political forces at the parliamentary elections. Alyona Getmanchuk is director of the Institute of World Policy in Kyiv.
women in the government, the role of a female in Ukraine looks rather bleak. By no means do I question men’s ability to govern the country, but some participation from us women, would not hurt either. When I was a student in the United States, one of my professors told me that it is wonderful that women in Ukraine do not wear headscarves. Fortunately, today we do not. Folk stories emphasize the strong role Ukrainian women have always played in supporting their families and keeping it together. Today, many Ukrainian women care for their families by slaving overseas as nannies and caretakers, in order to send money home. Ukrainian girls still “kick ass,” as in the radical actions of the Ukrainian “Femen” movement, who draw society’s
attention to important issues by appearing topless at various public places and carrying posters with questions for the government authorities. But what can a few brave girls do against all those important men in the government? In addition to lack of participation in the government, we also have received derogatory remarks from the president, as at the Davos Forum. Well, the first lady may simply prefer to be invisible behind her big and important husband, but it does not mean that the rest of Ukrainian women should remain as well in his shadow until better times come. Lilia Ostapenko, a UkrainianAmerican attorney in the Washington, D.C., area can be reached at liliaostapenko@yahoo.com
“Here’s how we do the fingerprint voting. It’s our know-how we’re happy to share.”
“That’s an idea!”
NEWS ITEM: After a series of scandals in parliament, where deputies continue voting for others in violation of the constitution, Speaker Volodymyr Lytvyn said they will start testing the fingerprint voting system on March 11. But a number of deputies, particularly from the pro-presidential Party of Regions, have spoken in favor of introducing amendments to legislation to legalize faction voting. Deputy Chief of Party of Regions faction in parliament Mykhailo Chechetov (left) has many times been caught on camera orchestrating voting of his faction and the rest of the ruling coalition that includes the Communists and Lytvyn’s own faction.
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Marchuk: Ukraine is ‘burial ground’
Ivan Marchuk, one of the most talented members of the Ukrainian dissident movement in the 1960s, still paints in his Kyiv studio. (Joseph Sywenkyj)
BY A L E X A N D R A R O MAN OS KAYA ROMANOVSKAYA@KYIVPOST.COM
It is hard to find an artist who loves Ukraine so much in his paintings and scorns it so hard when he speaks about it. Gazing intently at a large canvas in a shabby studio in the center of Kyiv, painter Ivan Marchuk forgets for a few minutes that there are two people waiting for him. After a few strokes, he wakes up and gives a half-smile through his thick, walrus mustache that few besides artists sport these days. One of the most talented members of the Ukrainian underground movement in 1960s, he fought for the restoration of a national culture along with thousands of other poets, artists, musicians and historians. “I was banned by the
Soviets, you know,� he said, recalling the period when he refused to draw the scenes of happy pioneers and obedient villagers working the fields. Instead, he wanted to paint Ukrainian landscapes in his own technique he called “pliontarism� from a Ukrainian verb “plesty,� or to weave. That’s why his lakes, trees and thatched-roof houses look as if they were knitted, not painted. Two years before the Soviet Union collapsed, he escaped abroad, moving from Australia to Canada and then to the U.S., where he spent 11 years in voluntary exile. He came back a decade ago to find out that Ukraine still doesn’t recognize him. “It’s a burial ground of talents,� said Marchuk, 74, in his studio looking at hundreds of his paintings stacked on
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Ă†â€˜Even dying on the road is worth it, if only I have all my paintings with me.’
– Ivan Marchuk
the floor. “This country is ungrateful. If a Ukrainian becomes famous and achieves something, it happens abroad, after he leaves Ukraine.� Honored by prestigious Taras Shevchenko award in Ukraine and
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Æ24
accepted by the International Academy of Modern Art in Rome to its ranks, he still doesn’t have a museum in Kyiv. A year ago Marchuk claimed that if Viktor Yanukovych becomes president, he wouldn’t stay in Ukraine. But his health is failing him and his paintings are near. “If someone could move me away with all my paintings, I would have gone wherever possible. Even dying on the road is worth it, if only I have all of my paintings with me,â€? he said. Yet, despite these dramatic remarks, he admits that he could have never created his remarkable landscapes anywhere else but in Ukraine. “I never painted them in Canada, Australia or USA. That’s not my land,â€? he said. “Despite living in the city, I Æ24
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Free medical care? There is no such thing; if state can’t pay doctors in public hospitals, patients will have to do so Ukrainians often wonder how many decent doctors stayed working in state hospitals and polyclinics instead of joining private practices. “When you say “decentâ€?, what exactly do you mean, doctor?â€? you might inquire. I mean highly qualified and altruistic doctors whom you would want to find for love or money. As a person who worked in a state hospital for a few years, I can tell you they’re as rare as gold dust. And the reason is that it’s hard for them to survive there. But even a professional stateemployed doctor can either help, or pass the patient on to the hospital or to another doctor, depending on circumstances. Almost any doctor, however, will do their best if they receive additional motivation. It’s common knowledge that for a state general practitioner the main sources of income are his salary and extra “rewardsâ€? for medical certificates or spravkas – such as sick leaves – and the patients’ little extras. This second component of their income is often much higher than the official salary. The doctors, who for various reasons work in the state medical sector, have evolutionary developed ways to make money, as well as various personal insurance methods against the “difficultâ€? patients. They have ways to pass on the patients who give them too much of a headache. The story I am about to tell you is a good case in point. My former classmate’s little son got sick. His temperature was up to 38.3. The father got scared, called an ambulance, doctors arrived, diagnosed a common cold, gave him a shot of a fever relieving drug and left. What to do next, they said, was not a part of their job. The resentful father called the emergency service again, but before that he called me to ask for advice. What should I do? How should I thank the doctors? Since my classmate worked in the State Security Service (SBU) for several years, and then moved on to the tax police, for him this issue was a professional challenge. Rather than “thankingâ€? by slipping a few bills into someone’s hands, he was more used to, maybe, giving someone a bottle of liquor for a present. So, now he was asking me if there was a right way of thanking a state-employed doctor, and – importantly – where he should find a decent doctor for the future. My advice was to not reinvent the wheel, call the local doctor from the polyclinic and “thankâ€? him or her with a bit of cash Æ22
Saturday, March 19
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20 Entertainment Guide
Saturday, March 19
K’Maro is the stage name of Canadian-Lebanese singer Cyril Kamar. Born in Lebanon during war, he left his motherland and moved to Canada. At the age of 13, he founded his own band. After a few musical stints with other musicians, he decided to go solo when he turned 21. Known for his husky voice and gangster-like music, he often mixes French, English and sometimes Arabic lyrics in his songs. “Femme like U” and “Crazy” are among his most popular hits. When he is not busy writing and performing, K’Maro designs clothing for his own line Belbec. Saturday, March 19, D*Lux Night Club, 3 Hrushevskoho St., 200-9009. www.dlux.com.ua. Free admission till 10 p.m. After 10 p.m.: Hr 200 for women, Hr 400 for men.
(iap2009.kiev.ua)
Sunday, March 20
Street dancing on Maidan Holi Bollywood dances The Indian festival of colors, Holi, manifests itself in throwing colored powder and pouring water over each other in the streets. Ukrainians with love for India will take it easy celebrating the occasion only with the Bollywood-style dances. It incorporates elements from R&B and hip-hop to Latino and classical Indian dances. Ukrainians picked up on the trend and will present their Bollywood dance versions. Holi is the religious holiday of Hindus and Sikhs, which signifies the victory of good over evil. It falls on March 19-20 this year. Sunday, March 20, Budynok Ofitseriv, 30/1 Hrushevskoho. Tickets: Hr 100-300.
Friday, March 18 – British pianist Jonathan Powell will perform pieces by Grieg, Chopin, Scriabin and Szymanowski at 8 p.m., cultural center Master-Klass, 34 Mazepy St., metro Arsenalna, www.masterklass.org/eng, 594-1063. Tickets: Hr 30. Saturday, March 19 – Philarmonic Symphonic Orchestra will present music pieces by Hungarian composer Franz Liszt to mark his 200th anniversary at 7 p.m., National Philharmonic, 2 Volodymyrsky uzviz, 278-1697, www.filarmonia.com.ua. Tickets: Hr 20-100. Sunday, March 20 – a concert of Belarussian Serebryanaya Svadba jazz band at 8 p.m., Sullivan Room, 8 Prorizna St., 066-485-5555. Tickets: Hr 150-200.
Saturday, March 19
Best classical picks (1200-dpi.livejournal.com)
Friday, March 18 – Violinist Ihor Zavhorodny of chamber ensemble Kyiv Soloists will play pieces by Bach at 7 p.m., Budynok aktora, 7 Yaroslaviv Val St., 235-2081, www.actorhall.com. ua. Free admission.
During each and every weekend until the end of spring, Independence Squre in Kyiv, better known as Maidan, will be a dance floor for hundreds or even thousands of people. The new project by Inter TV channel called "Maidan’s" will bring together 12 teams of dancers from Ukraine's largest cities to compete among themselves. This weekend will kick off with dancers from Kharkiv and Khmelnytsky. Maidan’s is open to anyone. The aim of the project is to teach people dancing in a large group. Among choreographers in charge of this challenge will be socialites Olena Shoptenko and Dmytro Dikusar. The winning team will make their city “The dance capital of Ukraine.” Saturday, March 19, 7 p.m., Maidan Nezalezhnosti.
Tuesday, March 22 – a final concert of the Week of Francophonie with music pieces by Claude Debussy and Igor Stravinsky performed by National Symphonic Orchestra, 7 p.m., National Philharmonic, 2 Volodymyrsky Uzviz, 278-1697, www.filarmonia.com.ua. Tickets: Hr 20-100. Wednesday, March 23 – a jazz concert by Serhiy Makarov quintet at 8 p.m., Cultural center Master-Klass, 34 Mazepy St., metro Arsenalna, www.masterklass.org/eng, 594-1063. Tickets: Hr 40.
Compiled by Nataliya Horban
Tropical and rave party from one of Bordellos Pedro Erazo of Gogol Bordello, the famous gypsy punk band, is coming alone to explore the native city of his legendary band leader Eugene Hutz. Apart from sightseeing, he will throw a cool show mixing records at a DJ set. Erazo’s part in Gogol Bordello is to play percussion and entertain the crowd singing or rapping in Spanish, adding a Latin touch to the band’s multicultural music. Born in Ecuador, he moved to the U.S. in 1995 and 10 years later joined the band. In Kyiv he will collaborate with other DJ-wizards to conjure gypsy rave, tropical bass and all other sorts of exotic tunes. Saturday, March 19, 10 p.m., Sullivan Room, 8 Prorizna St., www.sullivanroom. kiev.ua, (066) 485-5555. Tickets: Hr 50.
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March 18, 2011
Movies
Entertainment Guide 21 Live Music
ZHOVTEN 26 Kostyantynivska St., 205-5951. Irishfest Perrier’s Bounty: March 19, 22 at 7:45 p.m. Waveriders: March 20 at 2:25 p.m. Five Minutes of Heaven: March 20, 23 at 7:45 p.m. His &Hers March 18 at 7:45 32A March 21 at 7:45 Shorts Attack! March 18-23 at 4:45 p.m., 6:15 p.m., 9:40 p.m.
Africa speaks out against the International Monetary Fund and the World Bank in the French drama ‘Bamako.’ (itpworld.wordpress.com)
BAMAKO Language: French with Ukrainian subtitles Drama. France (2006) Directed by Abderrahmane Sissako Starring Aïssa Maïga, TiécouraTraoré and Maimouna Hélène Diarra Activists from the African civil society have submitted complaints to the World Bank and the IMF, which they accuse of all the wrongs in Africa. Lawyers’ speeches and testimonies are observed by a young couple who live next door to a court. Mele works as a bar singer, her husband Chaka is unemployed, and they are on the verge of a break up. Watching the protestors, Chaka doesn’t seem to care much for their plight. This riveting tale of the tragedy the size of a continent juxtaposed against a personal story of life, love and death promises to be different. SHORT’S ATTACK FESTIVAL If you think that love is pain, welcome to the club. Festival “Love is a Catastrophe” presents a selection of short films from all over the world. In surreal and sometimes odd onscreen stories an alien comes to Earth
and finds love, while a scuba diver falls for a fish. A grandmother fights for her beloved car. Two people in love survive the end of the world. An Italian aristocrat loses her dear cat in the airport. A woman struggles with jealousy. And someone gets lost in the fields. All shorts are shown in original languages with Ukrainian subtitles. THE NIGHT OF FRENCH SHORTS The most famous shorts from Armenian, Canadian, Belgian, Egyptian and other filmmakers promise to keep you up all night. Searching for the sense of life, killing the homeless dogs, handling troubled kids, fighting the loneliness, parenting and, of course, building relationships, among other themes, will be on the festival’s agenda. Shorts are screened in French with Ukrainian subtitles. La Francophonie is an international organization that unites French-speaking countries and consists of 56 members and 14 observers, one of which is Ukraine. Its cultural festival runs in Ukraine for the fourth year now.
KYIV CINEMA 19 Velyka Vasylkivska St., 234-7301. Irishfest Perrier’s Bounty: March 18 at 7 p.m. Five Minutes of Heaven: March 19 at 7 p.m. 32A: March 20 at 7 p.m. Waveriders: March 21 at 7 p.m. Eden: March 22 at 7 p.m. His & Hers: March 23 at 7 p.m. The Night of Shortfilms in French March 18-19, 11 p.m. – 8 a.m. Shorts Attack! March 18-23 at 1 p.m. and 7:10 p.m. MASTERCLASS CINEMA CLUB 34 Mazepy St., 594-1063. Boxes: March 22 at 7 p.m. Ghost: March 24 at 7 p.m. BUDYNOK KINO 6 Saksaganskogo St., 287-7557 Bamako: March 21 at 7 p.m. BOXES Language: French with Russian or Ukrainian subtitles Drama. France (2007) Directed by Jane Birkin Starring Geraldine Chaplin, Michel Piccoli and Jane Birkin Fifty-year old Anna moves to a new home somewhere on the coast of Brittany. After the move her rooms are buried in boxes that are full with memories. Anna has three daughters from different fathers. Life hasn’t been easy for her and the girls – Fanny, Camille and Lilli. All the people from her past life seem to have moved in with her to the new home. As she goes through the boxes, she must find strength to fight the past and look forward to the future. GHOST Language: English with English subtitles Drama/Fantasy/Mystery. USA (1990) Directed by Jerry Zucker Starring Patrick Swayze, Demi Moore and Whoopi Goldberg A young couple, Sam and Molly, has just moved into a new stylish apartment. One day Sam finds some discrepancies in his company’s bills. Coming back home from the theater one night, Sam is shot by a mugger next to their home. He dies but his spirit stays on Earth. With the help from a swindler-turned- fortuneteller, Oda Mae, he looks for those guilty of his premature departure and manages to see and touch Molly one more time.
An all-time favorite fantasy drama ‘Ghost’ starring Patrick Swayze and Demi Moore explores the supernatural boundaries of love. (image.toutlecine.com)
IRISHFEST The week of Irish week has two more night to go. In the comedy thriller “Perrier’s Bounty” three fugitives are being chased by another gangster. “Five Minutes of Heaven” drama follows the conflict in Northern Ireland, starring Liam Neeson. Young catholic school girls step into the adult world buying their first 32A-sized bra and falling in love for the first time in “32A.” If you are into documentaries, catch “His and Hers” – a story about 70 women of different ages reflecting on life, love and family – and a surfing lifestyle tale in “Waveriders.” Six short films awarded by Jameson Dublin International Film Festival will close the festival. All films are screened in English with Ukrainian subtitles.
Belarussian band ‘The Toobes.’ (cache.photosight.ru) ART CLUB 44 44B Khreshchatyk St., 279-4137, www.club44.com.ua Concerts traditionally start at 8 – 10 p.m. March 18 The Toobes (Belarus), Hr 50 March 19 The Kooks cover party, Hr 50 March 20 Soiuz 44 Jam Session, free admission March 21 Trip Hop Shop, free admission March 22 Spring Jazz Nights: New Generation, Ihor Sidash Band, Hr 30 March 23 Funk U, Hr 50 March 24 Evening with Sergey Dotsenko DOCKER’S ABC 15 Khreshchatyk St., 278-1717, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. March 18 Tabula Rasa, Tex-Mex Company, Hr 70 March 19 Ot Vinta, Karnavalnaya Zhara, Hr 70 March 20 Vostochny Express, free admission March 21 Second Breath, free admission March 22 Tres Deseos Latino Party, Hr 20 March 23 Rockin’ Wolves, Hr 30 March 24 Animals Session, Hr 30 DOCKER PUB 25 Bohatyrska St., metro Heroyiv Dnipra, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. March 18 Mad Heads XL, Red Rocks, Hr 70 March 19 Motor Rolla, Chill Out, Hr 70 March 20 M-1Party: Sweetlo, Foxtrot Music Band March 21 Mojo Jo Jo, free admission March 22 Chill Out, free admission March 23 The Magma, free admission March 24 Beer Party: Rock-H, Second Breath 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 18 Foxtrot Music Band, G Sound March 19 Hot Guys, Wild Peoples March 20 Kuka Ta Banda March 23 Midnight Blues March 24 Wild Peoples PORTER PUB 3 Mazepy St., 280-1996, www.porter.com.ua Concerts traditionally start at 7:30 p.m. March 18 Midnight Blues March 19 Juke Box March 20 Dikie Liudi March 23 Ivan Bliuz March 24 Crazy Train JAZZ DO IT 76A Velyka Vasylkivska St., 289-56-06, http://jazz-doit.com.ua Concerts traditionally start at 8:30 p.m. March 18 Ever Green March 19 Majestic Duo March 23 Alexander Marchenko Other live music clubs: GOLDEN GATE IRISH PUB, 15, Zolotovoritska St., 235-5188, http:// goldengatepubkiev.com/ TO DUBLIN IRISH PUB, 4 Raisy Okipnoi St., 569-5531, http://www.to-dublin.com. ua/ PIVNA NO.1 ON BASEYNA, 15 Baseyna St., 287-44-34, www.pivna1.com.ua DRAFT 1/2 Khoryva St., metro Kontraktova Ploshcha, 463-7330 KHLIB CLUB 12 Frunze St., www.myspace. com/xlibclub CHESHIRE CAT 9 Sklyarenko St., 428-2717 O’BRIEN’S 17A Mykhaylivska St., 279-1584 DAKOTA 14G Heroyiv Stalinhrada St., 468-7410 U KRUZHKI 12/37 Dekabrystiv St., 562-6262.
Compiled by Alexandra Romanovskaya and Svitlana Kolesnykova
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22 Lifestyle
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March 18, 2011
Organic farming takes root in countryside as people seek healthier food alternatives BY O K S A N A G RY T SEN KO GRYTSENKO@KYIVPOST.COM
Getting kids to try organic milk in an age of advertising campaigns of fizzy alternatives requires a certain amount of cunning. On a recent visit to an organic farm not far from Kyiv, one mother found a neat tactic. “Try it,” she told her youngster. “It’s like Coca-Cola but white and also tasty.” The farm belongs to Yuriy Sergeyev, a small-scale pioneer of the organic industry in Ukraine, which is gaining popularity as parents look for healthier options for their children. “It’s a big problem that people forgot the taste of natural food,” said Sergeyev. A British-trained economist, Sergeyev moved to the village of Stovpiahy, some 85 kilometers from Kyiv, in 2009 to set m. up a small farm. “When I started I had only two goats.. Then one cow appeared. Then we needed a land to pasture the cow,” fordent mer Kyiv resident aid, Sergeyev said, recalling his move yside to the countryside ion of with a population only 2,000. ed his famSergeyev used
ily savings to buy vegetable gardens on the outskirts of the village and built his farm on one hectare of land. When the number of his cattle increased, he had to lease some land owned by villagers and the village council and hire workers. “It was hard everywhere: from finding the people to gaining their credibility,” Sergeyev said, adding that it was very hard to hire good staff as villagers are not accustomed to working efficiently. Organic food is produced without the use of chemical fertilizers, growth accelerators or antibiotics. Its proponents claim it is healthier and purer than other methods of farming. Among his many earth-friendly techniques, Sergeyev is especially proud of an earthworm Staratel, or a gold digger, which helps to convert animal manure into humus soil in two months instead of three to four ye years it would otherwise take for it to deco decompose on its own. “Every “Everything that we sell people, we also eat ourselves,” Viktor Velgan, the farm’s ch chief zoologist, said. He s said he strictly controls sanitation and production quality as he shooed journalists out of the farm’s m milk shop, concerned abou keeping the room about sterile sterile.
The natural bounty on display at the organic farm of Yuriy Sergeyev in the village of Stovpiahy, some 85 kilometers from Kyiv. (Oksana Grytsenko)
Ukraine has no established standards for organic production. Sergeyev said he hadn’t applied for international certificates as he had no plans to export. Customers at Sergeyev’s Kyiv shop seemed impressed with the quality of the produce. “I have never seen milk of such high quality in our grocery shops. But my mom tells me that once in her youth there were products like this,” said Yevhenia Sydorenko, 36, who often visits to buy milk for her child. The prices are certainly higher than
in stores – Hr 25 for a liter of cow’s milk and Hr 100 per liter of goat’s milk. But Sergeyev said his sales are increasing every year. “I’m ready to pay more as it is the health of my child,” said Sydorenko. Products from the farm can be bought at www.milk-shop.com.ua or by visiting Sergeyev’s office in Kyiv. People often come from Kyiv to Sergeyev’s farm aiming to forget the hustle and bustle of the big city and see well-groomed goats, sheep, calves, chickens and quails as well as vegetables and lots of flowers.
He said visitors often become his permanent clients. “Saturday and Sunday are the days when we have two-three or even five excursions,” said Sergeyev, who jokingly calls his farm a zoo. Tymofiy Devko, the village mayor, is glad to have this farm in Stovpiahy as it brings money to the village budget. “Now the farm has 10 workers with the average salary of Hr 1,500 per month. It gives taxes to the village budget of Hr 1,500-2,000 per month. We also lease the land for about Hr 5,000 per year,” Devko said. Sergeyev has expansion plans. He wants to move most of his cattle into a new cowshed and extend the number of products by adding sausages. Another aim of the farm is bee-farming and the cultivation of vegetables and flowers. “I brought lots of English roses,” the farmer said, pointing that it’s another passion of his that gave the name “Villa of Roses” to the branding of the farm’s products. Now the farmer thinks he has enough knowledge and experience to write a thesis at Kyiv Agrarian University. But his main plans are still connected with land. “We came to this land with serious intentions and want to work here,” he said. Kyiv Post staff writer Oksana Grytsenko can be reached at grytsenko@ kyivpost.com
Zelensky: There is no free medical care Æ19 for a visit. If they like the doctor, they should exchange telephone numbers and be friends from then on, or rather work together as a team of a good doctor and a grateful patient. He listened very carefully, inquired how much he should pay and said farewell. When his child got sick in a month’s time and my friend once again called me in the middle of the night, I asked him whether he had found the right pediatrician. He told me he had solved the problem with doctors another way: he went
to the local polyclinic, flashed his scary ID card and bullied all the doctors. Now they’re afraid of him and run to him at his first call. All was well, but once again he was calling me at home asking why his child is once again being sent to the hospital. Any doctor is capable of treating a common cold – not in the least because the cold just passes by itself! So, why were they sending his child to the hospital? I come across similar questions all the time. So, what is the answer, and what is
the moral of my classmate’s story? Although it is a violation of laws and constitution, had the child’s dad spent Hr 100-200 in the first place (ideally, without flashing his credentials), his son would have been perfectly fine and stayed at home. He would not be taken from one hospital to another, having to take tons of drugs he does not really need. That’s not to mention money spent in vain on drugs, taxis and so on. His other option would have been to go to a private hospital, but that’s another story.
He could, of course, complain, but it’s not going to work. It’s not just a single doctor who does not want to and cannot play by the rules, the whole system is flawed. And, to beat a system, you need another system – you can’t do it alone. It’s been a while since all those officials and bureaucrats in healthcare have done anything for the healthcare. They work like surgeons – chopping chunks off the budget. They can’t care less about the problems at the bottom of the food chain and are governed by
their own set of interests. So, it’s up to you to decide whether you should thank a doctor or not. Just remember that counting on your constitutional rights and hoping that someone else will sponsor your free medical care these days are just as naive as hoping that the minister’s black Mercedes will stop at the red light. Kostyantyn Zelensky is a general practitioner in Kyiv. You can read more of his blogs and op-eds on www.kyivpost.ua/ author/konstantin-zelenski/.
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Lifestyle 23
March 18, 2011
Ukrainian-born artists leave their mark on French art ÆNearly 260 Ukrainian artists migrated to Paris to become members of the famed School of Paris
BY N ATA L I A A . F E D US C HAK FEDUSCHAK@KYIVPOST.COM
LVIV, Ukraine – When she died of tuberculosis at the age of 25 in 1884 Paris, Ukrainian painter Marie Bashkirtseff left an astounding body of work – some 229 paintings, drawings and sculptures. While most of these works were destroyed during World War II and what remains today provides only a snapshot of her considerable talent, during her short lifetime Bashkirtseff made a mark on art in Europe and her homeland as well. Yet Bashkirtseff was only one of the first in a long line of Ukraine-born artists who traveled to Europe in the 19th and 20th centuries to hone their artistic skills and gain prominence. Nearly 260 artists uprooted themselves and migrated to Paris, a city which by the turn of the century had overtaken Rome as the world’s artistic mecca. Once there, they studied, discussed, and worked, thus officially becoming members of the famed Ecole de Paris, or School of Paris. Despite its name, the School of Paris was not an institution or an art movement defined by any artistic doctrine, said Lviv historian Vita Susak, who recently published a groundbreaking book that looks at the many Ukrainian artists who were a part of it. “Rather, it was a milieu in which artists met, shared experiences and enriched one another in artistic work. It was a phenomenon.� Finding its beginnings at the end of the 19th century, but truly emerging as a force in the early 20th century, the Paris school gave rise to such international greats as Marc Chagall, Piet Mondrian, Amedeo Modigliani, Pablo Picasso and Henri Matisse. The many styles it birthed or propagated included Cubism, Fauvism, Post-Impressionism, Surrealism and Dada, a movement which rejected prevailing standards in art through anti-art. The Ukrainian artists, particularly Mykhailo Boichuk and Alexander Archipenko, birthed their own artistic styles or pushed the boundaries of those already in existence.
Lviv historian Vita Susak presents her book ‘Ukrainian Artists in Paris, 1900-1939’ on March 16 in Kyiv. (Yaroslav Debelyi)
While Anton Lesonko (1737-1773) is believed to be the first Ukrainian artist to see Paris, the mostly widely-known Ukrainian in Paris was Bashkirtseff, said Susak, whose book is titled “Ukrainian Artists in Paris, 1900-1939.� Born into a wealthy family in Haivorontsi outside Poltava, Bashkirtseff traveled with her mother as an adolescent to Nice and then later to Paris, where in 1877 she enrolled
in the Academie Julian, one of the few institutions that accepted women in that era. She completed the sevenyear course in two and was the first Ukrainian woman to receive an artistic education, according to Susak. “She’s important as an individual,� Susak said. “Her popularity was fantastic.� Bashkirtseff’s importance, however, stemmed not only from her artistic abilities. A widely-published author
who corresponded with French writer Guy de Maupassant – Bashkirtseff’s sometimes scandalous diary is still in print – she was a feminist who supported formal education for women and encouraged them to realize their potential. The painter became a leader of the women’s creative emancipation movement, noted Susak. Her experience and body of work served as an example for other women to follow their dreams and not be afraid as they set off for Paris. At the beginning of the 20th century, European artists began to move away from the rigorous form of art that was produced at the kind of institution Bashkirtseff attended. Instead, they began to explore Art Nouveau, a style that was characterized by organic motifs and flowing curvilinear forms. Within that movement, artists from Central and Eastern Europe tried to develop their own national style, Susak noted. Ukraine experienced a Neo-Byzantine movement which was largely developed and promoted by Boichuk and supported by Ukrainian Greek Catholic Church in the person of its leader, Metropolitan Andrey Sheptytsky. Sheptytsky’s role in the development of Ukrainian art as a whole cannot be underestimated, Susak said. Understanding that even the greatest talent could not be developed without a European education, Sheptytsky in the early part of the century started to grant scholarships to gifted young men to study in Paris and Munich. His gen-
erosity, however, was not confined to members of his own faith. He funded artists like the Orthodox Mykhailo Havrylko and Lviv-born Leopold Kretz, a Jew. Kretz, who was Sheptytsky’s student at one time, received encouragement and train fare from the metropolitan to pursue his passion in Paris. Jews would become a driving force in their own right not only in the Paris school, but Ukrainian art as well. Boichuk, who regularly corresponded with Sheptytsky, travelled extensively throughout Europe and was drawn to monumental painting, national traditions and religious ideas propagated by the French Nabis. The Nabis drew their inspiration from the Pont-Aven School, which centered on Synthetism, a form of painting evolved by the renowned artist, Paul Gauguin. Having mastered Italian mosaic, al fresco and al secco techniques, Boichuk became head of the School for the Revival of Byzantine Art, which exhibited in Paris. Eager to apply what he learned in Europe, he returned to Lviv. He lived in Kyiv after the 1917 Russian Revolution. A founding professor of the Ukrainian State Academy of Arts, he organized a school of monumental art there, which became very popular. He died in November 1936 during the Stalinist purges, accused of being an agent of the Vatican. Most of his works, which included delicate iconography, were destroyed. To find out more, read “Ukrainian Artists in Paris, 1900-1939,� published in Ukrainian and English by the Kyivbased Rodovid Press and A-BA-BA-HALA-MA-HA. The 407-page volume is the first systematic and comprehensive assessment of the role Ukrainian-born artists played in the French art world. Despite its title, it reaches back to the 19th century and concludes with World War II, and presents the often difficult and complex journey Ukrainian-born artists undertook in search of expression and fame. A French translation of the book is currently in the works. Kyiv Post staff writer Natalia A. Feduschak can be reached at feduschak@ kyivpost.com.
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24 Lifestyle
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March 18, 2011
Reclusive genius Marchuk remains unappreciated in his homeland Æ19 have the soul of a peasant. I
Artist Ivan Marchuk (top) invented his own style of painting, plyontarysm, which makes his works look like they’ve been weaved, not painted. Born to a family of a weaver, he says his father’s work inspired the technique, the details of which he keeps in secret. (Joseph Sywenkyj)
always knew that if I don’t find myself in painting, I’ll quit the brushes, pick up a shovel and a rake and go work with the soil.” Apart from landscapes, Marchuk also paints portraits and abstract pieces, having created up to 4,500 works to date, he says. In Kyiv Marchuk leads a reclusive life spending days and sometimes nights working in his studio. He usually arrives to his studio at 7 a.m., never forgetting to buy a newspaper before painting. “After 9 a.m. the news goes out of date, and I can’t read it anymore,” he remarked. The world switches off as work begins. “I can take a cup of coffee with some cognac as my doping. And then I start my drudgery: As I torture the canvas, it tortures me back.” He spends at least 10 hours a day working. Sometimes he lies awake at night, he said, pondering over new ideas. Living alone appears difficult at his age. “An artist can’t exist without a woman, without a female body,” he said, but then stumbled as he spent a lifetime without a partner. “A real woman should make you want to come home, not hide in the studio. She has to be a delight for the eyes of a painter
and an aesthete.” Marchuk was married once – his commitment didn’t last more than three months. When he doesn’t paint, he attends art exhibitions and gallery openings but despises the way they are organized. “In America you come, grab a drink and stroll with it looking around and chatting. The atmosphere stimulates a dialogue. Ukrainians, on the other hand, like to lecture [during art presentations].” In modern art, he doesn’t seem to be inspired by any up and coming talent. “They’re all junk artists,” he said, shrugging shoulders and using his trousers to wipe fingers from paint. He said that he talked with curators from PinchukArtCenter, but apparently didn’t want to cooperate because “that art center is a kindergarten. There is no smell of art there.” Locked day and night in his cramped studio, he literally sits on his paintings unwilling to sell them. “I want Ukraine to acknowledge me, to understand what it has.” After a pause, he seems to be giving up on this dream: “I’m a fool to have come back to this madhouse. I just need to live in another country.” Kyiv Post staff writer Alexandra Romanovskaya can be reached at romanovskaya@kyivpost.com
Ukrainian soccer players getting in top form as Champions League nears BY M A R K R AC H K E VYC H RACHKEVYCH@KYIVPOST.COM
With two teams flying high in European club competitions, Ukraine’s national side should be in top form to challenge the best teams in Europe with the Euro 2012 tournament fast approaching. But the continued speculation about a new manager, with the current boss only in a temporary role, is continuing to damage prospects for cohesion as less than 450 days remain before next year’s championship, which Ukraine is co-hosting. Eleven players called up to play in the March 29 exhibition, or friendly, match against Italy are from big-hitting domestic clubs Shakhtar Donetsk and Dynamo Kyiv. Both are still in the thick of battling for honors in the Champions League and the Europa League, respectively, Europe’s premier soccer tournaments for clubs. The Pitmen have advanced to the Champions League quarterfinals in April while the White-Blues are on the verge of surging past Manchester City for a quarterfinals berth after soundly beating the English side 2-0 in the first leg in Kyiv last week. The two clubs’ success in European club competition was not lost on Dynamo’s veteran striker Andriy
Æ March 29 exhibition match with Italy will involve 11 players from Shakhtar, Dynamo clubs Shevchenko. “The objective of winning the [2012] European Championship has been set for us, and I see lots of factors helping us achieve it,” Shevchenko, 34, said. “Here [in Kyiv] are familiar walls, support from the fans and, lastly, the successful performance of Dynamo and Shakhtar on the European arena,” the all-time leading goal scorer of the Blue and Yellows said on March 11. Six Dynamo, five Shakhtar and three players apiece from Dnipro Dnipropetrovsk, Metalist Kharkiv and Karpaty Lviv were called up along with Anatoliy Tymoschuk from Bayern Munich and Andriy Dykan from Spartak Moscow. There are no newcomers to the
national team this time, signaling caretaker coach Yuriy Kalytvyntsev’s growing confidence in choosing the right players for next year’s tournament. However this could change any day as Ukraine’s soccer federation has made it clear that Kalytvyntsev’s managerial stint is temporary. There’s been speculation that former national coach Oleksandr Blokhin, Italy’s Marcello Lippi and even Argentina’s Diego Maradona could take the helm. “The situation is unacceptable, a head coach should’ve been named last year,” said TV soccer commentator Ihor Miroshnychenko. “Because the new manager will have his own vision, his own strategy of who to play and such moves could negatively affect the team’s psychology when made soon before Euro 2012.” The game against Italy will be the national team’s 12th friendly since 2010. Friendly matches with European powerhouses France and Germany, both former World Cup holders, are also scheduled for June and November, respectively. The last world-class team Ukraine played was Brazil in October 2010. However, the Ukraine team is well behind the 16 friendly matches that Poland has played and will fall behind
Artem Milevskiy of Dynamo Kyiv and Edin Dzeko of Manchester City fight for the ball during their Europa League round of 16, first-leg soccer match at Lobanovsky stadium in Kyiv on March 10. (AP)
one more match as Poland plays two friendly matches this month. Both national teams have been eager to stay in shape having automatically qualified for the Euro 2012 as co-host countries without having to officially compete.
The Ukraine -Italy friendly will be broadcast live on Inter channel on March 29, 21:45. Ticket prices range from Hr 50 to Hr 250. Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com
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Lifestyle 25
March 18, 2011
Rocking with Druha Rika
Valeriy Kharchyshyn of Druha Rika during a concert in Kyiv on May 22. (Yaroslav Debelyi) BY M A R K R AC H K E VYC H RACHKEVYCH@KYIVPOST.COM
These rockers from Zhytomyr Oblast had originally intended to take an English name for their band. But as fate would have it, the five band members were denied a British visa in the mid-1990s to perform at a music festival. So they translated their name from Second River to Druha Rika and decided to sing in Ukrainian. “To do music in English, one must live [in an English-speaking country] for a while. It won’t be that interesting to arrive on stage wearing sharovary [baggy kozak trousers] and start singing in English…but when a Ukrainian sings in Ukrainian it remains Ukrainian, it’s still ethnic music, and we’re still here,” said the band’s front man and song writer Valeriy Kharchyshyn. Betting on a Ukrainian-language song instead of English paid off. Druha Rika became one of the most popular rock bands in the last decade. Last year, the group hit another milestone after it took silver diploma honors from
Hermes after their music video for Dotyk (“Touch”) had more than 90,000 combined online views on various platforms. Meanwhile, Kharchyshyn won a business award for professionalism and achievement in show business. Although few who view music videos online eventually buy albums, the Zhytomyr Oblast native said these are the people he hopes to see at concerts where the group makes more than a third of its money annually. That’s a huge chunk of change for a group that Segodnya newspaper, in its 2010 ranking of top show business earners, estimated had made $360,000. For all the milestones Kharchyshyn has reached in the band’s 16-year existence, there’s no detectable mystery behind the baritone-voiced graduate of the Zhytomyr Music College. He’s as straightforward as his lyrics are crisp. But the difficulty lies in labeling his brand of music. Many of the overlapping guitar riffs that lead into their songs conjure U2 guitarist Edge’s string preambles before
ÆKharchyshyn, lead singer of Druha Rika, is master of his own fate Bono’s voice enters a track. And unlike the emotional fragments heard in Okean Elzy’s renditions, another mainstay Ukrainian band, Kharchyshyn’s lyrics are mature but not weighed down in vague notions. Yet the band’s consistent melodies carry a new wave sound with noticeable musical influences from Depeche Mode, The Cure and The Verve. They even opened for Depeche Mode’s lead singer Dave Gahan during his solo tour in 2003 in Kyiv. “While comparisons to these bands are flattering and not unjustified we have our own sound,” a softly spoken Kharchyshyn insisted before a private
concert performance on March 7. That unique sound is partially the reason why the group has only averaged an album release every three years. Founded in the mid-1990s, Druha Rika has been working on its fifth album for more than a year and it still lacks a working title. “We’re still in the creative stage…I like where we’re at now, we’re creating the kind of music that we like, and thank goodness it appeals to others… we’re blessed that we get to make money while doing this,” he said. The band’s seemingly timeless creative process is taking them from jam and recording sessions in Kyiv to studios in Moscow in an effort to “keep changing the scenery around” them. The video to their new album’s Englishlanguage track “Hello My Friend” will be filmed as far away as California. Having shed outside management and producers in 2003, Druha Rika can afford to be the masters of their creative domain. But the lead singer admits it’s getting harder with each passing year to pro-
duce Druha Rika’s trademark sound of guitar-intensive committed rock and undisguised lyrics. “I can only write when I’m inspired and this is why our albums get released with large time intervals, sometimes we’ll get together and it’ll click…when we don’t, we’ll search for it,” he said, a graduate of Zhytomyr’s musical college in trumpet playing. It’s a standard that demands pouring “your soul” into the whole process. Kharchyshyn said that there’s up to 40 demos on hand that won’t blossom into songs until they have a melody and the words to go with it. Translation: Additional jam sessions. “What’s important is for the sound to be good and the lyrics understandable,” he said. This process is the most arduous. The band might piece together a song by recording percussions one day, drums another and guitar a different day. The rarer yet easier song genesis, according to Kharchyshyn, is when a melody and text appear at once “at home, when driving or flying in an airplane”. Often times, and more complicated, is when a band member starts to play certain chords in a studio that have enough staying power to involve the other members who feel the musical harmony at the level of the initiator. However, this harmony needs to be strong enough and deliverable to inspire Kharchyshyn to think of words to the song. But Kharchyshyn said he soon grows tired of his songs, especially after hearing them on the air and performing them constantly. It also doesn’t mean the band wouldn’t want an enduring hit for the ages. “I’m more than certain that once the Beatles left the stage after a concert, they also grew tired of some of their songs, this is the misfortune of every musician who has to play a song 1,000 times,” he said. But perhaps the biggest open secret to the Druha Rika sound is the band’s cohesion. Few musical groups like Pink Floyd have managed to preserve their original band composition. Kharchyshyn said the five lived in one apartment with their spouses when they moved to Kyiv in the late 90s. They quarreled and made peace with each other so many times that they’ve “become hostages to each other and our music.” “We simply haven’t found better friends elsewhere,” Kharchyshyn said with a charming smile. Kyiv Post staff writer can be reached at rachkevych@kyivpost.com.
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26 Paparazzi
www.kyivpost.com
March 18, 2011
Russian ballet dancer Anastasiya Volochkova (L)
Glamorous ladies dress up for the film premiere.
A harpist greets the guests.
Russia’s black swan in Kyiv
No movie goes without popcorn.
On March 9, two ballet dancers visited Ukraina cinema on Horodetskoho Street. Russian prima ballerina Anastasiya Volochkova, a notorious Moscow socialite who started her own show after being sacked by the Bolshoi Theater, was the first celebrity. Actress Natalie Portman, who played the main part in Oscar-winning film “Black Swan,” was not spotted in the audience yet kept the guests frozen for nearly two hours during the onscreen ballet saga. The psychological drama tells a story of a rising ballet star, Nina, whose simultaneous rivalry and friendship with another ballerina threatens to destroy her. Kyiv's high-end clothing boutique Sanahunt organized an exclusive showing for their clients and invited Volochkova, knowing her love for expensive and lavish outfits and successful renditions in Petr Tchaikovskiy’s ballet “Swan Lake.” In 2003, Volochkova was fired from the Bolshoi allegedly for gaining weight. Before launching her own show, the ballerina sued the theater and won the lawsuit. She has also joined the United Russia political party shortly before the scandal, which she scandalously quit earlier this year. “Black Swan” is out in theaters now but only in the Ukrainian language. (Joseph Sywenkyj)
If you want Kyiv Post Paparazzi to cover your event, please send details or invitations to news@kyivpost.com or contact photo editor Yaroslav Debelyi at 234-6500
‘Office Romance’ hits the screens
The cast of ‘Office Romance’ presents the film.
Æ
Famous Ukrainian comedians from “95 Kvartal” together with Russian film stars presented a remake on the iconic Soviet comedy “Office Romance” on March 11. Celebrities flocked to Oscar cinema in Obolon to watch the film before its official opening a week later. In the original film, a shy and unsuccessful state worker from the institute of statistics decides to hit on his unattractive boss to get promoted. But in the twist of fate, he eventually falls in love with her. In the remake, producers transferred the plot to modern times. Film characters now use modern gadgets, take weekend trips abroad and drive expensive cars – all the things that were unattainable in the Soviet Union. This light-hearted comedy will be a special treat for fans of Volodymyr Zelensky who does his best playing an office geek. The film in the Russian language hit the screens on March 17. (Joseph Sywenkyj) Comedian Yevhen Koshevoy (L).
Singer Mika Newton (C)
Actor Volodymyr Zelensky (C) talks to deputy Nestir Shufrich (L).
www.kyivpost.com
Lifestyle 27
March 18, 2011
Know Your City
One monument to two events: Christianization, municipal rights
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was made to build the monument that exists today. (First established in the German city of Magdeburg, Magdeburg Rights stipulates municipal rights of self-government. Thus, city taxes remained in the city treasury, untouched by the government. Through Poland and Hungary, the rights first came to Ukraine in the 15th century. They were restricted in 1781, later renewed by Russian czar Alexander I in 1797, then cancelled by Alexander’s successor, Nikolay I, in
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“The legend says that Volodymyr got blind before the christening,” said Anna Shevchuk, a Kyiv guide. “After being baptized, he began to see.” Though Volodymyr’s magical healing had nothing to do with the stream, as he was baptized somewhere else, people connected the two events. The stream is long gone. Over the years, the chapel fell into disrepair. Near the end of the 18th century, as Magdeburg Rights were taken away and then restored, the decision
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Ukrainians can take their pick about what this monument honors: The christening of Kyivan Rus in 988 or establishment of Magdeburg Rights.
lar place for strolling in summer and skiing in winter. Today the monument has lost all its former glory. The stairs are in poor condition, with street lights smashed and some steps missing. And the monument itself slopes. Some Kyivans even started to call it “the tower of Pisa.” So, better go check it out before it collapses completely. The best way to get there is walking by the embankment from Poshtova Ploshcha. Kyiv Post staff writer Alexandra Romanovskaya can be reached at romanovskaya@kyivpost.com
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As odd as it may sound, Kyivans managed to dedicate the first monument built in Kyiv to commemorate two separate events. The column of Magdeburg Rights, near Poshtova Ploshcha in the Podil neighborhood, is also known as the Lower Volodymyr Monument. Both names are legitimate as they mark two important events in Ukrainian history – the christening of Kyivan Rus in 988 and the return of Magdeburg Rights, laws rooted in the medieval era that granted municipal powers to Kyiv intermittently from the 15th century until the 19th century. There is an explanation that ties them both together. The place where the white column stands may be where Prince Volodymyr baptized his sons, as a stream flowed there in the days of old before disappearing, perhaps being subsumed into the Dnipro River. The monument, though, was built soon after the Magdeburg Rights were returned to Ukraine. Since the 17th century, there was a small chapel that pilgrims visited, among other sacred places. The water in the stream was believed to heal eye diseases.
1831, but left in Kyiv before their final abolishment in 1835.) The monument originally looked like a two-tier stone pedestal with an 18-meter column. Despite the thenpopular baroque style, architect Andriy Melensky in 1802-1808 built the memorial in the tradition of classicism. The column is crowned with a small golden cupola with a cross on top. The chapel was kept, placed inside the pedestal and the stream flowed from a small fountain there. In the 19th century, Kyiv Christians, led by priests, stopped at the chapel during processions on church holidays. Further renovations changed the face of the monument. Over the years, the pedestal was narrowed to one tier. In 1935, the chapel was turned into a cafeteria but later demolished. The cross on top of the column was also taken away in Soviet times, to be returned during the 1988 millennium celebration of Kyivan Rus’ conversion to Christianity. In 1908, Kyiv journalist Anatoliy Savenko protested against the horrible condition of the wooden stairs leading to the monument. Seven years later, they were replaced by concrete ones with beautiful street lights in every stairwell. In Soviet times, it was a popu(Joseph Sywenkyj)
BY A L E X A N D R A R O MAN OVS KAYA
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28 Community Bulletin Board
March 18, 2011
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
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 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 – 6 listings 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 Jimmy’s Psychology Club within the Center 'Australian Council in Ukraine' invites guests to our free problemsharing and counselling event every Saturday from 5 pm to 7 pm with qualified native speakers at 37Horiva St., Podil district (m. Kontraktova Ploscha). For more information, please contact us at steda@ukr.net or +050 568-8403. http://vkontakte.ru/club23571290
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 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 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 Individual consultations, psychological support in divorce, family relations, stress management, health issues, relaxation, selfesteem, personal development. Call Elena: 097-294-6781.
Î Free English discussions about Internet marketing. Bold Endeavours, a British marketing and web development company, welcomes senior marketing managers/directors to an English language discussion group about search engines and Internet marketing at noon on the first Saturday of each month. Call 221-9595, or register online at www.bold.com.ua.
Public speaking – 6 listings
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 – 3 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 contact Olga, 063 351- 6147. 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 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 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 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 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 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. 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 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 096-4624646 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: 067-9071456 or email: consonance-s@ukr.net. Î Student Embassy Project invites students to join intercultural events in Kyiv, Lviv and Ternopil. The initiative is aimed at international students’ integration into Ukrainian society, youth leadership development, intercultural dialogue. To learn more please e-mail us at studentembassy@gmail.com or visit: http://studentembassy. org.ua. Î The Kyiv Rotary Club meets on Tuesdays at 7 p.m. at Andreyevsky Prichal restaurant, 6 Bratskaya Str. For more information, please contact Nataliya Rodovanskaya at 067-296-5672 or n_radov@yahoo.com.
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 098-779-4457 for more information, www.acny.org.uk/8592. Î You are invited to the St. Paul’s Evangelical Church. Roger McMurrin is its founding pastor. Music for worship is provided by the Kyiv Symphony Orchestra and Chorus. Worship services are held every Sunday at 2:30 pm at the House of Artistic Collectives (Veriovka Choir Hall, 4th floor) at 50/52 Shevchenko Blvd. Call 2354503 or 235-6980. Î International Church, Kyiv. English and Spanish Bible study classes. We invite you to weekly services at 10.30 a.m. Saturdays at 13A Miropolskaya 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 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 and further information please consult our website at: http://kmrclub.org. Î The Kyiv Lions Club is one of 45,000 Lions Clubs around the world. We raise funds and provide services to help those most in
need in our community by supporting charities in our chosen sectors of giving: children, the disabled, and the elderly. We meet on the second Monday of every month in the downstairs bar of the Golden Gate Irish Pub at 7 p.m. For more information contact Paul Niland at 044-531-9193 or paul.niland@primerosfunds.com.
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 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 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 Free English/German conversation club on Sundays. Druzhbi Narodiv 18/7, office No. 3. Everyone is welcome. Tel: 529-75-77.
People in need - 7 listings Î 9-year old Gleb Plisko suffers from epilepsy, and Cerebral palsy since birth. The boy needs urgently a bone orthopedic operation that will give him a chance of restoring some mental and orthopedic functionality. The surgical intervention costs Hr 54,120 and is to be done in a specialized hospital in Evpatoria. The boy's mother is his only supporter, and she hopes for your assistance. Contacts: Mother Natalia Subbotina - mob.tel +38 050 852-8529 Bank details for hryvnia transfer: OSCHADBANK ТОБО 39/098 ОКПО 02761766 МФО 384016 Р/С 290990952 Л/С И-28782 Bank details for dollar transfer: Beneficiary: Subbotina Natalia Valentynivna Account No.: 2620 7598520000/1025 Bank: OSCHADBANK Bank branch address: 95071, Sympheropol, 30/1 Sevastopolska St. Correspondent bank: Deutsche Bank Trust Company Americas, New york, USA SWIFT CODE: BKTRUS33 Account with institution: Acc. 04-095-334 SWIFT CODE: COSBUAUKCRI JSC Oschadbank 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
www.kyivpost.com 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=hel p&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?modul e=help&act=show&c=1&id=1170 http://fonddarina.com/ru/child/nastyakotova?news#72 Contact Nastya’s volunteer, Iryna: 096-37389-71. 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 appreciate 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=show& 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
www.kyivpost.com
Paparazzi 29
March 18, 2011
From left: André de Margerie, head of the Department of International Relations, ARTE France, writer Andrei Kurkov and French Ambassador Jacques Faure
Æ
Weekend with ARTE
Viktoria Tigipko (C) and German Ambassador Hans-Jürgen Heimsoeth (R)
Gottfried Langenstein, vice president of ARTE (L) and former Deputy Prime-Minister Hryhoriy Nemyrya (C).
On March 11, German Ambassador Hans-Jurgen Heimsoeth hosted a reception on the occasion of ARTE Film Festival in his private residence. Representatives of the cultural TV channel ARTE TV – the French-German public broadcaster – presented a special selection of French and German films and documentaries during the weekend of March 12 – 13 in cinema “Kyiv.“ Ukrainian writers, art critics and patrons, as well as Ukrainian, German and French diplomats attended the reception. With this event, "we hope to show the Ukrainian and Russian film industry that film cooperation between two neighboring countries with two different cultures is not only possible, but also works very well for many years [19 years],” said the spouse of German ambassador, Lisabeth Heimsoeth. Goethe Institute in Kyiv and the French Cultural Center organized the Weekend with ARTE. (Yaroslav Debelyi)
Guests enjoy a conversation in the residence of the German ambassador.
If you want Kyiv Post Paparazzi to cover your event, please send details or invitations to news@kyivpost.com or contact photo editor Yaroslav Debelyi at 234-6500 ‘Propala Hramota’ band
Stop censors
Ukrainian poet Pavlo Korobchuk reads his poems.
Lead singer Foma of ‘Mandry’ band adds final touches to an anticensorship poster. Poets, painters and musicians converged in Sullivan Room club on March 9 to support an international competition “Stop Censorship” organized by non-profit, non-governmental organization Center UA. Artists sang songs, drew posters, and recited poems in support of the freedom of speech in Ukraine. To take part in the competition, anyone can submit a story, a poster, a poem or a slogan in Ukrainian, Russian or English by April 1. Details at www.stopcenzuri.newcitizen.org.ua. (Yaroslav Debelyi)
30 Lifestyle
www.kyivpost.com
March 18, 2011
Helping others with similar problems BY O L E S I A OL E S H KO OLESHKO@KYIVPOST.COM
Seven years ago, Crimean native Yuri Holikov was rescued from his addiction to opium by people who told him about the Kyiv-based Social Partnership rehabilitation center and brought him to their church. Now Holikov is trying to help others with similar problems. He’s offering them work in his car repair shop. He hires recovering drug addicts and alcoholics, giving them a chance to master a profession by acquiring skills that could land them paying jobs one day. “Working at my repair garage is some sort of a transitory period for them,� said Holikov. “Not everybody enjoys being in grease up to elbows or rummaging around in car screws. Some will start looking for other jobs, like driving a taxi, but no one can take their skills from them.� The training and employment of individuals recovering from drug, alcohol or other problems, as well as former convicts, is not yet a widespread practice in Ukraine. But companies like Holikov’s prove that it is possible to make money and do good for society at the same time. Such companies are called social enterprises. They produce a marketable service or a product while helping reintegrate vulnerable people into society. Unlike charities, they don’t ask donor organizations or philanthropists for money. They make it themselves. They create their own profits just like regular businesses do, but spend it to support rehabilitation centers and clinics, train-
ing programs for former alcoholics, drug users, individuals with criminal records, shelters, free lunches for the homeless and other needs. The United Kingdom has the most developed system of social enterprises in Europe. More than 50,000 social enterprises provide various goods and services, such as offering professional training, producing soap or running hotels and laundries. “They are quality oriented. If they do not provide a high quality good or service, they will lose their clients, thus will have no money to help their communities,� said Christine Forrester, adviser to the British Council Social Entrepreneurship Program in Ukraine. It’s hard to put a number on the number of social enterprises. One of those – Oselya, or Dwelling – is a charity that works in Lviv. The organization has been running a project called the Workshop for several years. The Workshop aims to equip vulnerable people with professional skills, like furniture restoration, that could help them to make their own money. “We have four people involved in the Workshop project,� said Mariana Sokha, an Oselya employee. “We teach them to carry out furniture restoration or decorative painting.� Two graduates of the Workshop – one has had a leg amputated, another suffers musculoskeletal disorders – make their living by painting cups and dishes. On Feb. 25, they held an exhibition in Kyiv. “We want to be a self-sustainable organization,� Sokha said.
Mechanic Yuri Holikov hires recovering drug addicts and alcoholics to give them a second chance in life. (Courtesy)
People at Oselya have a special attitude to second-hand clothes. They believe there are no castoff things and no cast-off people. As proof, they ran a second-hand fashion show two years ago. They collected clothes that people had thrown away and created a collection that was shown in Lviv. After the show they sold the outfits and raised some money. Ukrainian authorities have a definition for people in need, or “people in difficult life circumstances,� as they are officially called. These are the longtime unemployed, former prisoners, drug users and alcoholics, children
deprived of parental care and abuse victims. More than 70,000 Ukrainian families fall under those categories, but these are only people officially registered by the state social service for families, children and youth; the actual number of people in need is much higher. Olena Sichkar, deputy director of the state social service said that Ukraine has 1,900 organizations helping vulnerable social groups. Sokha from Oselya said charities that heavily depend on donors’ contributions or donations from local governments are not efficient and have no future. “Today they [the donors] have
money to give and tomorrow they don’t,� she said. “But people who need help will always come to us.� Sokha suggests that switch to social enterprises, or self-support projects as she calls them, would be a great solution. Oleksiy Brzhezinsky from Zhytomyr supports this approach. He launched a hardware workshop within the rehab center he works with. Now people who are done with treatment and rehab can try the profession of welder or blacksmith and make metal frameworks for bookstands, doors, grids and so on. Brzhezinsky said the idea to start this project came suddenly – in 2004 the organization got a lathe and a welding machine from their American partners. “Now this enterprise is being run by people who have been through our rehabilitation,� Brzhezinsky said. “One of them registered a private enterprise, I found a consultant for them who gives them some hints on both business and production matters.� The four people who currently work in the workshop get 50 percent of income, which makes Hr 5,000-7,000 per month for all of them. The remaining 50 percent goes to cover the needs of the center, such as training for new rehab patients, development of new projects and advertising of their products. “I think that our business is doing well,� Brzhezinsky said. “We found our niche on the Zhytomyr market of metal production. But it’s just a beginning, we have so many ideas to implement.� Kyiv Post staff writer Olesia Oleshko can be reached at oleshko@kyivpost.com
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WWW KYIVPOST COM
Employment/Classifieds 31
March 18, 2011
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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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32 Photo Story
www.kyivpost.com
March 18, 2011
Pushing the limits: Story of resilient Anna Shevchenko BY N ATA L I YA H OR B AN HORBAN@KYIVPOST.COM
Next to the entrance of the Shevchenko family’s apartment sits a three-wheel bike, which is five times the normal size. On the cabinet in the corridor are small leg braces. With the help of this equipment, 9-year old Kyivan Anna Shevchenko can walk or take a ride in a park, just like any other kid. Born with spina bifida, a backbone defect, she has almost no use of her legs. She can slightly move her right leg, but has no control over her left one. Despite the disability, Anna attends a regular school and is an aggressive swimmer. Her parents help her dream big and see opportunities instead of obstacles. In Ukraine, compared to disabled children who grow up in oneparent homes with a Hr 750 monthly stipend, she is lucky. The only child in the family, Anna’s room with dumbbells, a ball and training bars looks like the home fitness center of someone desperate to lose weight. “This was made by her grandfather,” said Anna’s mother Olga, 33, a tax office worker, as she pointed at a board designed for abdominal training (5). Anna's athleticism grows with her training regimen of one hour every day. Three times a week she is with her father, once with her therapist and for three days ends up swimming at a pool. She has ambitious goals. She dreams of winning medals at the Paralympics, a competition that she will qualify for in seven years, when she is 16. Anna’s parents trained her since she was two. But only one year ago she got serious about swimming. There already is progress. “A year ago she could swim 50 meters in two minutes and 48 seconds, but now she manages to do so in one minute, 44 seconds, which means she has improved her timing by a minute,” her father Serhiy, 34, a courier, said proudly. Anna goes to a swimming pool to practice with a trainer on weekends (3). “In one year, she transformed from a kid who didn’t know how to swim properly into a very good swimmer,” said Anna’s trainer, Yuliya Yesypenko, 41. “She is a very hard worker and is grasps everything really fast.” Wearing a green swimsuit and a yellow cap with “Ukraine” written across it, Anna follows her trainer’s task to swim 35 laps in a 25-meter long swimming pool (4). “Anna is the most promising girl in the group. A lot of parents are not aware [of the opportunities] or just don’t want to bother taking their kid here,” Yesypenko said. Anna is one of 11 disabled kids supervised by Yesypenko. Among them is a seven-year old girl with cerebral palsy who comes to swim together with her mother, Inna Vynnykova. She and her daughter are more typical of a Ukrainian family with a disabled child. “Her father left us,” Vynnykova said. “Her twin brother died and now there are three of us: me, my daughter and her grandmother.” Her ex-husband stayed with the family while there was hope that their child would be able to walk. Once that proved to be impossible, he said he would stay with Vynnykova if they gave the child away to an orphanage. “For me it was like cutting my own hand off. I told him that if I couldn’t” do it, recalled Vynnykova, adding that her
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ex-husband was ashamed to take their daughter outside in a wheelchair. Knowing this, Anna Shevchenko’s mother, Olga, (2) is very grateful to have a strong, intact family. She was also a swimmer during her youth. For her daughter, water is so much more – the only place where she feels free in motion. To walk, she needs special braces that cost Hr 15,000 and need to be
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replaced with a new pair every six months (1). Fortunately, the government provides them free of charge. Anna’s status of “Chornobylets”, someone who was affected by the Chornobyl disaster, entitles her to some governmental support as well. Anna’s mother lived in the town of Prypyat but had to relocate to Kyiv after the explosion of the Chornobyl reactor.
“There may be a correlation between the Chornobyl catastrophe and Anna’s disability,” said therapist Tatyana Zotova, who has been seeing Anna since she was two. Apart from physical exercises, Zotova imparts knowledge. During the workout she tells her stories about world-famous artists, makes her learn poems by heart and teaches her phrases in English. “When I challenge her with a dif-
ficult exercise, she starts to recite a poem and that helps her to get through it easier,” Zotova said. “A brain needs training as much as the muscles. Feeling sorry is the worst strategy to pick in this case. The child needs love and someone to strengthen her will, which she can take with her for life.” Kyiv Post staff writer Nataliya Horban can be reached at horban@kyivpost.com Photos by Joseph Sywenkyj