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Birthday bash Donetsk celebrates ebrates the 75th birthday hday of its Shakhtar soccer team in style, with a concert ert featuring Rihanna. See page 18..
www.kyivpost.com
vol. 16, issue 20
Euro 2012 looks for 12,000 volunteers
May 20, 2011
Klyuyev’s solar energy companies shine bright B Y Y U R I Y O N YSH K I V ONYSHKIV@KYIVPOST.COM
BY M A R K R AC H K E V Y C H RACHKEVYCH@KYIVPOST.COM
If Ukraine wants to impress when it co-hosts the Euro 2012 soccer championship with Poland next year, it’ll take a form of civic engagement that has not yet caught on – volunteering. With hundreds of thousands of fans expected to flood Ukraine, organizers will rely on Æ12 The Euro 2012 twin mascots, one wearing Ukraine's national blue and yellow colors (R), the other Poland’s white and red, pose with children during a presentation in Kyiv last year. Organizers say Ukraine will need 12,000 volunteers to help guide tourists during the soccer championship to be co-hosted with Poland. In Ukraine, games will be played in Kyiv, Kharkiv, Donetsk and Lviv. (AFP)
Student’s death in police custody remains unsolved BY OL E S I A O L E S H KO OLESHKO@KYIVPOST.COM
A year ago on May 17, Kyiv pedagogical college student Ihor Indylo was brought to Shevchenkivsky district police station. The next day, police called his parents to collect the 20-year-old’s body. Indylo died of head trauma. Police say he fell off a bench in a detention
Inside:
cell. His parents are certain police officers beat him to death. The public outcry that followed gave hope that the case would be investigated thoroughly with the guilty punished, an important signal for the horrendous situation involving deaths in police custody. According to Kharkiv based Ukrainian Helsinki Human Rights Group, 15 people have died in police detention since the start of the Æ10
INSIDE: • Yanukovych approval ratings hover close to Yushchenko lows. Page 8 • IMF says no talks unless reforms start. Page 6 • Consumers score big with discount websites. Page 7
News Æ 2, 8 – 12
Business Æ 6, 7
Opinion Æ 4, 5, 12
Lifestyle Æ 14 – 21
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Ukraine’s renewable energy market looks more promising, especially with the adoption of green-tariff price incentives for electricity from renewable energy sources. Other preferences include duty-free imports and exemptions from value-added taxes. Yet despite laws giving financial breaks, analysts say mostly well-connected companies are getting the best deals. One such example is Activ Solar, an Austrian company with links to First Deputy Prime Minister Andriy Klyuyev. This company is among the few to supply environmental-friendly electricity at preferential prices. Klyuyev could not be reached for comment. Five solar energy companies linked to Klyuyev recently secured an agreement last year to sell electricity to the state for a premium price, one of the highest in Europe. The government hopes that, by paying more for environmentally friendly producers of energy, it will encourage production. The companies involved also got the right to import solar panels duty free and got permission not to pay VAT. Analysts praise the government for encouraging alternative energy sources to make the country less reliant on traditional energy, such as natural gas, oil and nuclear energy. But they say the process needs to be transparent and competitive in order to attract serious investment. “It’s good that the government started developing renewable Æ11
Racially motivated attacks on the rise BY SV I TLA N A TU C H Y N SK A TUCHYNSKA@KYIVPOST.COM
Viktor is a Ukrainian citizen with a successful business, a wife and four children, whose life was shattered in April when he was beaten savagely on a subway train. Viktor, 45, wasn’t assaulted for his wallet or his watch, or even his support of a political group or soccer team.
Employment/Real Estate/ Classifieds Æ 21 – 23
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He was attacked because his surname is Igbokvum and he is black. For people like Igbokvum, it is becoming increasingly dangerous to live in Ukraine. Reported incidents of racially motivated attacks are becoming more frequent yet still often go ignored by police, according to international organizations and human rights activists. “So far this year eight cases Æ10
2 News
MAY 20, 2011
May 20, 2011
www.kyivpost.com
Vol. 16, Issue 20 Copyright © 2011 by Kyiv Post The material published in the Kyiv Post may not be reproduced without the written consent of the publisher. All material in the Kyiv Post is protected by Ukrainian and international laws. The views expressed in the Kyiv Post are not necessarily the views of the publisher nor does the publisher carry any responsibility for those views. Газета “Kyiv Post” видається ТОВ “ПаблікМедіа”.
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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 Кв № 15261(3833ПР від 19.06.09. Передплатний індекс ДП Преса 40528 Надруковано ТОВ «Новий друк», 02660, Київ, вулиця Магнітогорська, 1, тел.: 559-9147 Замовлення № 11-4509 Аудиторське обслуговування ТОВ АФ “ОЛГА Аудит” З приводу розміщення реклами звертайтесь: +380 44 234-65-03. Відповідальність за зміст реклами несе замовник.
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www.kyivpost.ua: дайджест статей КИЇВ: Доля Десятинної церкви: собор чи музей? Світлана Тучинська Долю багатостраждальної Десятинної церкви у самому серці старовинного Києва може вирішитися буквально за кілька днів. На місці історичного храму можуть побудувати нову величезну споруду московського патріархату, або ж звести невеличку каплицю, залишити історичний фундамент старої церкви та зробити відкритий музей. Десятинная церковь в 19 веке. Вибір між цими двома варіантами має зробити комісія містобудівної ради з 15 осіб, які представляють різні інституції. Десятинна церква, побудована в кінці 10 століття, була першою кам'яною церквою Київської Русі. В первісному вигляді вона проіснувала до нашестя хана Батия в 1240 році...
Veteran radio meteorologist Lyudmyla Savchenko ran into trouble with station managers after mixing critical political commentary with a poetic weather forecast on May 12. (Courtesy)
Meteorologist silenced after mixing politics with weather forecast B Y M A R K R AC H K E V Y C H
БИЗНЕС: «Упрощенцев», возможно, пожалеют. Но совсем чуть-чуть Мария Шамота Глядя на агонизирующий малый и средний бизнес, пострадавший от введения Налогового кодекса в этом году, Кабинет Министров решил сжалиться над выжившими и предложил некоторые послабления для физических лиц, работающих на едином налоге. Но оппозицию и экономистов нововведения не впечатляют. В случае их принятия, бизнесменам временно простят неуплату единого социального взноса и привяжут единый налог к уровню минимальной зарплаты. Соответствующий законопроект был разработан Министерством финансов и уже зарегистрирован в парламенте... ПОЛИТИКА: Що Азарову можна, то Данилишину — зась Юрій Онишків Прем'єр-міністр Микола Азаров повторює ті ж дії, за які екс-міністра економіки Богдана Данилишина хочуть притягнути до кримінальної відповідальності. Проте, Генпрокуратура цього не помічає, тим самим посилюючи відчуття наявності в Україні вибіркового правосуддя. Азаров прийняв низку рішень щодо погодження будівництва паркінгу в аеропорті “Бориспіль” з одним претендентом, без тендеру. На початку серпня минулого року Генпрокуратура порушила кримінальну справу проти Данилишина за абсолютно ідентичне рішення. Найцікавіше, що навіть виконавець тендера, тобто фірма, яка заробить на цьому замовленні, і у Данилишина, і у Азарова та ж сама — ВАТ “Будівельне управління № 813”... Николай Азаров Полный текст статей и блогов можно прочитать на www.kyivpost.uа
RACHKEVYCH@KYIVPOST.COM
Ukraine’s state radio company cancelled live weather reports after a meteorologist criticized the nation’s leadership during her 2 1/2-minute, May 12 weather forecast. Lyudmyla Savchenko, a 30-year veteran who heads the forecasting section of Ukraine’s meteorological service, started her report poetically describing the spring weather. “One cannot remain indifferent to this beauty which shows in the tender scent of lilac and lily of the valley and the melodious trilling of the birds,” she said on the National Radio Company of Ukraine. “At times it seems that such miraculous days are a gift from nature to compensate us for the chaos, lawlessness and injustice which reigns in our country. It is simply incomprehensible that anyone can dislike this paradise on earth, this country, the Ukrainian people so much that they treat it so badly.” The station confirmed its management decision to cancel live broadcasts from the weather center in favor of pre-recorded weather reports. “The key point is if a person speaks about the weather then they should talk about it,” said Roman Chaikovsky, deputy general director of the National
Æ ‘Chaos, lawlessness and injustice.’
– Lyudmyla Savchenko
Radio Company of Ukraine. “When a person speaks about the weather then they should do it efficiently, in a qualified manner and smartly -- but about the weather, and that’s all,” he told Ukrainska Pravda news portal. In a video interview with media watchdog Telekritika, Savchenko said she spoke about what was on her mind that day. “We have free speech in Ukraine so why couldn’t I say what was on my mind?” she asked. Her critical weather report had more than 36,000 views on YouTube as of May 19. The general director of the national radio station is Taras Avrakhov, President Viktor Yanukovych’s former press secretary. Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost.com.
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3
May 20, 2011 Advertisement
European Business Association News
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#ORN %XPORT /N 4RACK BUT &REE %XPORT OF 'RAIN AND /ILSEED 0RODUCTS 3TILL ! "URNING )SSUE
/
N -AY THE 2ESOLUTION OF THE #ABINET OF -INISTERS OF 5KRAINE ON THE ABOLISHMENT OF CORN EXPORT QUOTAS CAME INTO FORCE 3UCH OUTCOME WAS A RESULT OF BUSINESS COMMUNITY CONSOLIDATED EFFORTS INCLUD ING THE POSITION PAPER ELABORATED BY THE %"! 'RAIN /ILSEED #OMMITTEE SUBMISSION 4HE %"! REGARDS THE CORN EXPORT QUOTAS ABOLITION AS A POSITIVE STEP FUELLING COUNTRYlS AGRICULTURAL EXPORTSl FACILITATION HOWEVER THE RESTRICTIONS ON THE EXPORT OF OTHER GRAINS STILL CON TINUE TO IMPOSE LOSSES ON GRAIN TRADERS AND AFFECT COUNTRYlS EXPORT REVENUES
%ARLIER IN /CTOBER 5KRAINE SET THE EXPORT RESTRICTION ON SHIPMENT OF CORN WHEAT BARLEY RYE AND BUCKWHEAT IN AN ATTEMPT TO PROTECT DOMESTIC CONSUMERS FROM RISING INTERNATIONAL PRICES FOLLOWING THE SUM MER DROUGHT DIMINISHED CROPS $ECREE OF THE #ABINET OF -INISTERS OF 5KRAINE m/N CON FIRMATION OF QUOTA VOLUMES FOR CERTAIN TYPES OF AGRICULTURAL PRODUCTS WHICH EXPORTS TO BE SUBJECT TO LICENSING TILL $ECEMBER n $ESPITE THE FACT THAT THIS DECISION WAS HEAVILY CRITICIZED BY MARKET OPERATORS AND INTERNATIONAL COMMU NITY AS INEFFICIENT UNPRODUCTIVE AND RISKY THE QUOTAS WERE EXTENDED UNTIL *ULY
%XTRA EVIDENCE TO THE MARKET INTERVENTION IS THE PLANNED 6!4 REFUND CANCELLATION FOR GRAIN EXPORTERS PRESCRIBED BY THE NEW 4AX #ODE 4HE NORM IF ENACTED MAY CAUSE PURCHASING PRICES FOR AGRICULTURAL PRODUCERSl DROP BY WHICH CAN RESULT IN FURTHER POTENTIAL SIGNIFICANT LOSSES APPROXIMATELY ESTIMATED AT THE LEVEL OF BILLION 5!(
-OREOVER PURSUANT TO THE INITIATIVE APPARENTLY REQUESTED BY THE 0RESIDENT 6IKTOR 9ANUKOVYCH ON CUSTOMS BASED RESTRICTIONS INTRODUCTION ON !PRIL THE 0ARLIAMENT OF 5KRAINE HAS REGISTERED A DRAFT FRAMEWORK D m/N MAKING AMENDMENTS TO THE 4AX #ODE OF 5KRAINE AND ADOPTION OF TARIFFS OF THE EXPORT DUTIES FOR CERTAIN TYPES OF GRAINSn 4HE FRAMEWORK CONCEPT ENVISAGES THE EXPORT TARIFF FOR WHEAT BAR )N CASE THE EXPORTS OF WHEAT BARLEY RYE LEY AND CORN AND WILL COME INTO AND BUCKWHEAT ARE CURBED AT THE GOVERNMENT FORCE ON THE FIRST DAY OF THE MONTH AFTER THE PLANNED LEVEL I E UNTIL *ULY THE CURRENT MONTH OF THE OFFICIAL PROMULGATION MARKETING YEAR WILL SEE A DRASTIC DECREASE /N BEHALF OF 5KRAINIAN AGRO BUSINESS COM AFFECTING THE 5KRAINIAN AGROTRADERS AND FARM MUNITY THE %"! HAS REPEATEDLY UNDERLINED ERS CAUSING DAMAGE NOT ONLY TO BUSINESSES THE ESSENTIAL NEED TO REVOKE THE EXPORT QUOTAS BUT ALSO AFFECTING CONSUMERS BY RISING PRICES WHICH ARE STILL IN PLACE FOR WHEAT BARLEY RYE 4HE 'OVERNMENT OF 5KRAINE HAS ALREADY VOICED THE SUPPORT OF THE AGROMARKET PLAY ERSl INITIATIVE IMPLORING TO CANCEL THE GRAIN QUOTAS IN ORDER TO RELEASE FREE EXPORTS m!FTER ANALYSING THE BALANCE OF RESERVES OF GRAINS THE -INISTRY OF !GRARIAN 0OLICY AND &OOD OF 5KRAINE HAS APPROVED THE COLLECTIVE DECISION TO
AND BUCKWHEAT 4HIS ACTION WILL ALLOW THE GRANARIES AND STOCKPILESl RELEASE THE HAR VEST SUPPLIES PROVIDING THE ROOM FOR THE GRAIN TRADERS AND FARMERS TO MANOEUVRE WITHIN THE REGULATIONS OF THE AGRICULTURAL POLICY OF 5KRAINE TAKING INTO ACCOUNT THE UNSTEADY GRAIN TRADE COUNTRYlS REGIME
/0).)/. !..! $EREVYANKO
%"! %XECUTIVE $IRECTOR
/
NE CAN HARDLY UNDERESTIMATE THE PROSPECTS AND THE POTENTIAL OF THE RURAL INDUSTRY IN 5KRAINE BEING A TREASURE TROVE FOR THE COUNTRYlS EFFICIENCY DRIVEN SUSTAINABLE ECONOMIC GROWTH (OWEVER THE UNCERTAINTY OF THE STATE POLICY ORI ENTATION LACKING THE MEDIUM OR LONG TERM CLEARLY ARTICULATED POLICY FRAMEWORK CONTINUES TO CAUSE ADDITIONAL AMBIGUITY WITHIN THE AGRARIAN MARKET AND TRIGGER THE RISKS FOR INVESTORS PRODUCERS TRAD ERS AND DOMESTIC CONSUMERS EVENTUALLY 4HE SPORADIC TIMELINE OF THE NORMSl ENFORCEMENT REGULATING THE ALARMING GRAINSl EXPORT RESTRICTIONS TESTIFIES TO THE ASSUMPTION 4HE AD HOC REVERSALS IN POLICY SUCH AS THE REINTRODUCTION OF GRAIN EXPORT QUOTAS USED IN THE EARLY S THE CONTROVERSIAL 6!4 REFUND CANCELLATION SCHEME FOR THE AGRO MARKET PLAYERS AND THE EXPORT DUTIES WILL HARDLY INCREASE THE INVESTOR CONFIDENCE IN THE COUNTRYlS AGRARIAN SECTOR 4HE MOST RECENT LEGISLATIVE INNOVATION ENVISAGING THE IMPOSITION OF EXPORT DUTIES IS FORECASTED TO BE ENFORCED DURING THE FORTHCOMING PARLIAMENT SES SION AS THE LEGISLATORSl MAJORITY VOTED IN FAVOUR OF ITS ADOPTION 4HE MECHANISM OF LEVYING DUTIES BEING STILL VAGUE AND THE TARIFFS OVERRATED WE STRONGLY RECOMMEND
OF THE %"! 'RAIN /ILSEED COMMITTEE ESTABLISH MENT WE ARE THE ACTIVE PROPONENTS OF THE %"! LOBBYING EFFORTS 4HE CORE MISSION OF THE COMMITTEE ENTIRELY COINCIDES WITH OUR VISION OF THE 5KRAINIAN AGRICULTURAL MARKET PROSPECTS INCLUDING THE FREE TRADE PROMOTING AND TRANSPARENT EXPORT SCHEMES SETTING UP AS THE PARAMOUNT GOALS
RECOMMEND THE #ABINET OF -INISTERS TO ABOLISH THE QUOTAS FOR EXPORTS OF CORN "Y THE END OF THE MARKETING YEAR WE HAVE A REMAINDER BALANCE OF MLN METRIC TONS OF CORN 4HE EXPORT QUOTAS ON THE REST OF THE GRAIN CROPS ARE PLANNED TO BE CANCELLED AFTER THE COMPLETION OF SPRING AGRI CULTURAL WORKS AND THE SOWING CAMPAIGN p WITH EFFECT FROM *ULY n INFORMED -INISTER -YKOLA 0RYSYAZHNYUK HOWEVER THE COUNTRYlS ACTUAL AGRICULTURAL POLICY STILL COULD BE MORE TRANS PARENT AND DRIVEN NOT BY SHORT TERM RESULTS BUT SHOW LONG TERM PROJECTIONS
4HOUGH WE REGRET TO WITNESS THE NATIONAL AGRARIAN CONGLOMERATES STILL BEING IMMATURE TO CONSOLIDATE THE EFFORTS IN ORDER TO ARRANGE A STABLE AND EFFEC TIVE COOPERATION WITH THE AUTHORITIES WE ARE TRULY OPTIMISTIC REGARDING THE QUOTAS ABOLITION AS THE FIRST STEPPING STONE IN ACHIEVING THE DESIRED OBJECTIVE
63%6/,/$ 3 +OZHEMYAKO
#HIEF %XECUTIVE /FFICER !'2/42!$% 'ROUP
4HE SIGNIFICANT PART OF THE GRAIN TRADERS OPERAT ING IN THE 5KRAINIAN MARKET REPRESENT MULTINATIONAL AGRICULTURAL CORPORATIONS HENCE THE EXPORT POLICY $O YOU CONSIDER CANCELLATION OF EXPORT QUOTAS THE 5KRAINIAN OFFICIALS STICK TO IS BENEFICIAL FOR NEI FOR CORN AS SUCCESSFUL STEPS TOWARDS CREATING A THER 5KRAINIAN ECONOMY NOR THE OVERALL COUNTRYlS COMPETITIVE AGRICULTURAL INDUSTRY AND AGRO MAR INTERNATIONAL IMAGE KET PLAYERSl INTERESTS PROTECTION (OWEVER THE MOST PAINFUL DRAWBACK OF SUCH !GRO INDUSTRIAL COMPLEX ROBUST DEVELOPMENT AS POORLY TARGETED EXPORT POLICY WILL AFFECT THE LOCAL WELL AS THE COUNTRYlS ECONOMIC WELFARE BENEFITS FROM GRAIN PRODUCERS AND THE STATE EXPORT REVENUES THE HEALTHY COMPETITION IN THE MARKET SECURED BY WELL RESPECTIVELY !S THE REPRESENTATIVES OF THE GRAIN FUNCTIONING BUSINESS ENVIRONMENT PURSUING MORE PRODUCERS COMMUNITY WE ARE FEARFUL OF THE RISKS THE ACTIVE INVESTMENTSl ENROLMENT (ENCEFORTH DUE TO THE 5KRAINAIN AGRARIAN INDUSTRY IS SUBJECT TO SUFFICIENT AGRO INDUSTRY FINANCING NOT ONLY THE SERVICES (OW DO YOU FORESEE THE RESULTS OF 6!4 REFUND SUPPLY WILL GROW BUT ALSO THE DOMESTIC CONSUMERS WILL PERIOD EXPIRATION ON *ULY ST FOR GRAIN GAIN GUARANTEED FOOD SECURITY AND PRICES CUT TRADERS ACCORDING TO THE NEW 4AX #ODE 7E REGARD THE DIALOG WITH THE GOVERNMENT INITI 4HE NEW 4AX #ODE FORESEES THE SOLID CHANGES FOR ATED WITHIN THE CONTEXT OF THE QUOTAS CANCELLATION 6!4 TAXATION OF GRAIN AND OILSEEDS PLANNED NAMELY EFFORTS AS THE STEP TOWARDS ESTABLISHING TRANSPARENT THE 6!4 WOULD NO LONGER BE CHARGED UPON TRANSAC AND EFFECTIVE STATE POLICY REGULATING NOT ONLY THE TIONS OF WHEAT BARLEY RYE RAPESEED SUNFLOWER AND AGRO ARENA PLAYERSl AFFAIRS BUT ALSO THE SOCIAL RESPON BUCKWHEAT WITH AN EXCEPTION FOR THE FIRST SALE OF SIBILITY OF AGRO BUSINESS AS A WHOLE GRAINS SEED OIL AND FLOUR TRADE $O YOU SUPPORT THE %"! LOBBYING EFFORTS 7E TREAT THE INNOVATIONS AS THE MEASURES SIM TOWARDS THE FREE EXPORT OF GRAIN AND OILSEED PLIFYING THE FINANCIAL PLANNING FOR THE GRAIN TRADERS PRODUCTS AND THE PROPOSED TAXATION SCHEME WILL STIMULATE THE (ONOURED TO BE THE CO FOUNDERS OF THE VERY IDEA MECHANISM OF FARM PRODUCE DIRECT SELLING
%"! #!2%%23 THE 'OVERNMENT TO RECONSIDER THE LOWERING OF EXPORT DUTY RATES OR PERHAPS THE CERTAIN MARKET PRICESl LIMIT ESTABLISHMENT VARYING UPON THE OVER ALL MARKET PRICING TENDENCY 3UCH MEASURES WILL PROTECT THE BUSINESS INTERESTS OF LOCAL FARM PRO DUCERS HEAVILY PRONE TO THE NEGATIVE IMPACT OF THE NORM AND THE COUNTRYlS FOOD SECURITY AS A WHOLE
THE EUROPEAN BUSINESS ASSOCIATION IS SEEKING CANDIDATES FOR THE FOLLOWING POSITION:
4HE LEVYING SCHEME PROPOSED IN COMPARISON WITH THE HARSH EXPORT QUOTAS IS EVIDENTLY MORE TRANSPARENT THE CONCEPT OF THE EXPORT RESTRICTION HOWEVER REQUIRES THOROUGH AND DELIBERATE ECO NOMIC ANALYSIS
- Academic background (legal/ economic would be preferential); - At least two year experience in agrarian sector; - Ability to plan, service and supervise a variety of meetings and events; - Strong analytical, research, business documentation and problem solving skills; - Knowledge of regulatory environment and government structure; - Fluency in both written and spoken English and Ukrainian; - Computer proficiency; - Excellent communication, negotiation and presentation skills; - Ability to deliver high-quality outputs within challenging deadlines; - Being a team-player along able to work independently and take initiative.
4HE %"! STRESSES THAT GRAIN MOVEMENT CONTROLS INITIATED BY THE OFFICIALS SHOULD BE MINIMIZED IN ORDER NOT TO INTERVENE IN MARKET MECHANISMS IN CASE SUCH NORMS ARE CRUCIAL THEY SHOULD BE TRANSPARENT NON PROTECTIONIST AND BENEFICIAL FOR ALL MARKET PLAYERS 4HE !SSOCIATION TREATS SUCH STRATEGY WHICH COIN CIDES WITH THE OBLIGATIONS 5KRAINE TOOK UPON AS A 74/ MEMBER AS THE MOST EFFICIENT MEASURE TOWARDS A SUSTAINED AGRICULTURAL GROWTH OF THE COUNTRY !S THE %"! STRIVES TO ENSURE THE BUSINESS ENVIRON MENT COMFORTABLE FOR ALL PLAYERS OPERATING WITHIN 5KRAINIAN MARKET WITH NO SPECIAL PRIVILEGE GIVEN TO INTERNATIONAL CONGLOMERATES OR LOCAL AGRARIANS OPERATE COST EFFECTIVELY IN LINE WITH THE LEGISLATIVE NORMS WE WILL CONTINUE TO DIRECT OUR CONSOLIDATED EFFORTS TO FURTHER LIBERALIZATION OF THE AGRO SECTOR REGARDING THE FREE EXPORT TRADE AS THE TOP PRIORITY OBJECTIVE
!RE THERE ANY POTENTIAL RISKS AND THREATS FOR THE CORN TRADERS OPERATING IN 5KRAINE IN CON NECTION WITH THE CURRENT EXPORT POLICY BEING STILL UNSTABLE
EBA GRAIN & OILSEED COMMITTEE COORDINATOR
Please send your CV and cover letter at: office@eba.com.ua by June 6, 2011.
6QDPNJOH &WFOUT The EBA invites you to join EBA traditional Football Tournament
I
f you are active and sports-oriented person and you have a team you can rely on, join the EBA traditional Football Tournament! The participation in the tournament will encourage not only the improvement of your team work but also will help you to establish communication with proactive and successful professionals from other EBA member companies! The participation fee – 250 EURO per team. EBA Football Tournament will take place on 4 June 2011 at 9:30 by address 1 Magnitogorska Str, metro station Chernigivska. To register please contact the EBA via events@eba.com.ua before May 25, 2011
7E LOOK FORWARD TO YOUR FEEDBACK AT
PGGJDF!FCB DPN VB
4 Opinion
www.kyivpost.com
May 20, 2011
Editorials
Jury trials
“Hello, this is Lady Justice. What should I do?”
Ukrainians and foreign investors alike feel that the nation is governed by “the rule of the rich” rather than “the rule of law.” As numerous polls show, trust is low in Ukraine’s government, courts and justice system. In such a situation, President Viktor Yanukovych’s administration are finding it difficult to convince the world that criminal investigations into his opponents are not politically motivated. Meanwhile, complaints continue to pile up about the lack of justice for ordinary citizens, such as Ihor Indylo. The Kyiv university student died under suspicious circumstances last year while in police custody. Police claim he died after falling and hitting his head. Indylo’s relatives and friends suspect police brutality. Whatever the outcome of any case, suspicions always loom because Ukraine’s judges and courts are notoriously corrupt. That applies to Indylo, corruption charges against former Prime Minister Yulia Tymoshenko and her associates as well as charges against ex-President Leonid Kuchma in the Sept. 16, 2000, murder of journalist Georgiy Gongadze. The judicial system has many needs: independent judges, professional police and prosecutors, clear deadlines for bringing criminal and civil cases to trial, limitations on pre-trial confinement. But one easy way of building trust in Ukraine’s justice system is to introduce jury trials, giving citizens responsibility and roles to hear the evidence and decide on the verdict. Former Interior Minister Yuriy Lutsenko, in pre-trial detention for five months now on corruption charges, has this week called for his case – seen as politically motivated by many – to be heard by a jury. We agree with him. If Yanukovych is serious about bringing law and order to Ukraine, and demonstrating that investigations under his rule are a genuine effort to combat corruption, letting jury trials composed of citizens make the call in the big criminal cases now unfolding is the best way to prove his dedication. Certainly, Ukraine’s constitution and laws may need to be changed to accommodate this. But with a strong grip over parliament and powers in Ukraine, Yanukovych has all the levers of influence and support to deliver on this swiftly.
Dirty tenders Desperate for additional revenues to fill budget coffers, President Viktor Yanukovych’s administration is shifting privatization into higher gear. Plans envision that a handful of utilities, billion-dollar power generators, will be auctioned off in the next two years, starting this year with Dniproenergo and Zakhidenergo. The electricity producers are in dire need of fresh investment and modernization. Putting them into private hands is the right move. But judging how the administration privatized fixed-line telephone company Ukrtelecom earlier this year, there is cause for concern. The fear is that these sales will also be non-competitive, that the tenders will be organized in a way that gives oligarchs backing Yanukovych a chance to buy the assets with little competition and at below market prices. Yanukovych is notorious for auctioning off prized assets to friends through inside deals. It was, after all, back in 2003-2004, when he served as prime minister, that Ukraine’s government organized a series of rushed and allegedly rigged privatizations that put billions of dollars worth of assets into the hands of business backers at a fraction of their worth. There should be no room or patience with struggling taxpayers for such scams this time around, given how dependent Ukraine is on International Monetary Fund bailouts, and how sharply the nation’s sovereign debt has surge in recent years. All tenders must be transparent. Tender conditions must attract the maximum number of bidders from Ukraine and abroad. Also troubling are conditions officials are talking about that will force new owners to preserve aging and environmentally unfriendly technologies. State Property Fund chief Oleksandr Ryabchenko said this week that the generators’ new owners will be required to keep them dependent long-term on coal-burning technology. Our suspicion is that the requirement for investors to secure coal supplies from Ukraine will rig the sale in favor of domestic oligarchs that own coal mines in Ukraine. But officials claim the aim of this policy is to preserve jobs in Ukraine’s vast coal mining industry, which employs hundreds of thousands of citizens in Yanukovych’s eastern base of political support. Whatever the aim, this policy is backwards. In a time when much of the world is working hard to decrease dependence on fossil fuels, such a policy would preserve dependence on dirty energy sources. There are ways to stimulate new jobs for coal miners. Here is one idea. Why not encourage the power generators’ new owners to invest into cleaner power factories producing cleaner energy technologies, such as solar power, wind mills or biogas?
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NEWS ITEM: Ex-Prime Minister Yulia Tymoshenko is challenging a criminal case against her that alleges that she abused her authority in a 2009 natural gas deal with Russia. Cut out as intermediary through that agreement was controversial gas trading intermediary RosUkrEnergo, which is co-owned by Russia’s Gazprom and Ukrainian billionaire Dmytro Firtash. Firtash is close to President Viktor Yanukovych’s inner circle. A court on May 10 rejected Tymosheko’s plea for prosecutors’ criminal case against her to be dropped. She plans to appeal to a higher court. Like many Ukrainians, Tymoshenko has no faith in the nation’s judicial system under Yanukovych. She recently said: “Yanukovych’s Lady Justice … has a sword in one hand and a cell phone in the other with a direct line to the President’s Administration, where all verdicts are written.”
Estonia’s example JACKSON D IEH L (C) 2011 THE WASHINGTON POST
“In ‘89 to ‘91 we thought we saw democracy spreading across an entire region,” Estonian President Toomas Hendrik Ilves told me in a conversation in his office in Tallinn. But of the East Bloc population served by Radio Free Europe – where Ilves was a research analyst 20 years ago – and Radio Liberty before 1989, just 25 percent now live in countries rated as free, Ilves says. The rest have fallen back under some form of authoritarianism. Will the Middle East make it to 25 percent in 20 years? That could depend, says Ilves, on whether this generation of revolutionaries makes good decisions about how to build democratic institutions and a free economy – and whether the West is supportive or discouraging. What did this tiny Baltic country do right? First, says Ilves, it created a parliamentary rather than a presidential system; every former communist country with a strong president has become an autocracy. It was aggressive in privatizing its economy, but in a way that prevented oligarchs from gaining control over swaths of industry, as in neighboring Russia. Estonia has a low flat tax and a robust free press, which have headed off the endemic corruption of other new democracies. Finally, Ilves says, it has benefited from an electoral system based on proportional representation – which has preserved minority parties and deterred the winner-takes-all mentality that has polarized places such as Hungary. “What we’ve learned,” says Ilves, “is that democracy is
Æ Baltic nation curbs powers of president, rich in establishing true democracy not just about building institutions but building the right institutions.” So far, the lessons from the last wave of anti-authoritarian revolution do not seem to be resonating with this one. Egypt is well on its way to making every mistake on Ilves’ list – from perpetuating a strong presidential system, to a majoritarian voting regime for parliament, to an economic policy that may veer away from a free market. Western governments, meanwhile, seem to be repeating stumbles they committed during the 1989-91 revolutions. Then, leaders doubted that countries such as Estonia could really win freedom; worried that disruption of the status quo could lead to war or chaos; and clung to diplomatic and personal relationships with a discredited elite. That history is repeating in the Middle East, where, says Ilves, “you have an elite that speaks English, that wears suits and ties, who are familiar in Western capitals, but who are completely discredited in their own countries.” Once again U.S. and European leaders are slow to accept that the old status quo is unsustainable, that a new generation of leaders is emerging – that unknown academics and radio station researchers could become presidents and foreign ministers. Jackson Diehl is deputy editorial page editor of the Washington Post. This article is reprinted with permission.
Feel strongly about an issue? Agree or disagree with editorial positions in this newspaper? The Kyiv Post welcomes letters to the editors and opinion pieces, usually 800 to 1,000 words in length. Please e-mail all correspondence to Brian Bonner, senior editor, at bonner@kyivpost.com or letters@kyivpost.com. All correspondence must include an e-mail address and contact phone number for verification.
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Opinion 5
May 20, 2011
Regions Party sees foreign conspiracies “Everyone is happy to see you, Mr. President!”
“Just take these smiles and wave, folks!”
VOX populi WITH OKSANA MARKINA
Do you believe the sexual assault allegation against ex-International Monetary Fund chief Dominique StraussKahn? If true, why do you think politicians and those in power abuse their positions? Could it happen here?
TA R A S K U Z I O
The Soviet Union used to propagate the notion that dissidents were funded by Western intelligence agencies. Today, those same (now, post-Soviet) elites, push an updated version of this notion by arguing that their opponents work with Western foundations and nongovernmental organizations to foment democratic “revolutions.” In Ukraine, President Viktor Yanykovych’s campaign against the opposition is an outgrowth of his Party of Regions’ alarm about the Arab Spring and of his rapidly collapsing popular support. In 2003-2004, when the Communist Party and Party of Regions first raised this fear of “revolution,” the threat was portrayed as a contagion spread by the 2000 Serbian and 2003 Georgian democratic revolutions. Yanukovych sees the world through the prism of foreign conspiracies, continuing to believe the 2004 Orange Revolution was not an authentic popular uprising but a U.S. conspiracy to deny him the presidency that he allegedly won. For instance, he believes that former Economics Minister Bohdan Danylyshyn was granted asylum in the Czech Republic only after bribes were paid to Czech ministers, and that Western criticism of his administration is written by paid hacks. (The Czech government believes that the expulsion last week of two of its diplomats was Kyiv’s response to the granting of asylum). At this year’s Davos summit, Yanukovych lamented the popular overthrow of the Tunisian dictator Zine el-Abidine Ben Ali because he had provided decades of “stability.” Immediately after Yanukovych’s election, Western foundations came under Security Service of Ukraine, known as the SBU, and Party of Regions scrutiny. In October, the SBU admitted it was investigating foreign funding for NGOs because of suspicion that “this money will be used for political activity in Ukraine.” Ukrainian member of parliament Olena Bondarenko wants to restrict Western funding for NGOs. The 2006 Russian law restricting foreign funding of NGOs, and the ideology behind it, was inspired by similar Ukrainian initiatives. Party of Regions deputies, such as Bondarenko, are publicly airing their support for draft legislation restricting Western funding of Ukrainian NGOs and the halting of Western training for activists and journalists. Yanukovych has transformed parliament into a rubber stamp institution and such legislation, if introduced, would be adopted.
Alla Bordyukh, pensioner “This is just a provocation which will be used by his opponents. A person occupying such a high post would not risk it in such way with a hotel maid. There are special people for such needs. Here in Ukraine, everything is possible because people allow politicians to abuse their powers.” NEWS ITEM: President Viktor Yanukovych visited the city of Mykolayiv on May 17, where he seemed to be greeted warmly by the crowds. But national and local media reported that students of three universities were forced to greet the president en route. They were instructed by their superiors to smile, waves flags and arms, and express joy and excitement, according to novosti-n, a local Internet news portal. Morever, hundreds of trucks held on a nearby highway for hours to free the way for Yanukovych's motorcade. Other media reported that dozens of billboards with Yanukovych’s face appeared in the streets on the eve of his visit.
Communist Party leader Peter Symonenko demanded that all NGOs be closed during the 2004 elections or, even better, shut down permanently. The State Tax Administration increased investigations of Western-funded NGOs ahead of the 2004 elections. Last year, that head, Mykola Azarov, became prime minister and head of the Party of Regions. The Communist Party and Party of Regions have accused the Our Ukraine party of being directed from the U.S. Embassy. The Communist Party argued that a Yushchenko victory in 2004 would have led to Ukraine’s becoming a “US and NATO protectorate.”. Russian political technologists such as Gleb Pavlovsky, who worked on Yanukovych’s 2004 campaign, imported conspiracy theories such as the so-called “Brzezinski Plan,” alleging that the US was behind presidential guard Mykola Melnychenko and the “Kuchmagate” crisis, in which former President Leonid Kuchma was allegedly heard ordering that violence be used against journalist Georgy Gongaze. Kuchma and Verkhovna Rada Speaker Volodymyr Lytvn continue to insist the tapes are a product of a
“U.S. conspiracy.” The People’s Party that Lytvyn heads issued a statement in 2009 alleging that “the organizers of these events had as their aim to undermine the system of state power in Ukraine and, especially, to weaken the position of the president who was in power at that time. This series of events had as its aim to clean the political field for Viktor Yushchenko and to blacken his opponents as politicians who had lost their humanity and any elements of morality.” The return to conspiracy theories draws on the Soviet pathology of paranoia, the fear of encirclement by “enemies,” hostility to Ukrainian nationalism and old-fashioned anti-Americanism. That the Communist Party and Party of Regions have revived these tactics, after first airing them eight years ago, shows how little democratic evolution has taken place in the Yanukovych administration. Taras Kuzio is a visiting fellow at the Center for Transatlantic Relations in the School of Advanced International Studies at Johns Hopkins University in Washington, D.C. Copyright Radio Free Europe/Radio Liberty
This American is not looking forward to saying goodbye to Kyiv or Ukraine Editor’s Note: On Jan. 28, the Kyiv Post staff published its story called “What we love and don’t love about Kyiv” in honor of the 1oth annual Best of Kyiv Awards. We invited readers to share their opinions. We will periodically publish responses. The following was received ff from U.S. citizen Lisle Kauffman, who is workingg in Luhansk.
LI S L E K AU F F MA N
What I love about Kyiv: Food I think it is fun, tasty, good quality and healthy. I also think Ukraine has the very best tasting milk I have ever had, much higher quality than the nasty and watery American stuff. I absolutely love Ukrainian food, and there are some restaurants where it does not cost an arm and a leg.
Historic buildings I love the wonderful architecture of the historic buildings Kyiv. The Philharmonic is one of my favorites. I love the building itself, particularly the orchestra hall inside, and I like being able to buy really inexpensive tickets for great seats to see wonderful performances. The opera house is wonderful, too. Pyrohiv I think [Pyrohiv National Museum of Folk Architecture and Culture] is one of the most interesting museums in the world. I like to go in the spring when the weather has warmed up, the flowers and trees are blooming, and the crowds haven’t arrived yet. It’s a very quiet, beautiful and peaceful place to just relax and think, while also learning about Ukrainian culture and history.
and more description and clarification. I wonder how do tourists manage to use the metro? I actually prefer to walk, but if I need to go someplace too far to walk, there are a number of inexpensive options. People I love Ukrainians. They are sincerely welcoming and generous. They will welcome a perfect stranger and make him or her feel at home, while sharing considerable food until he or she cannot eat anymore... they will also make their guest drunk too, but only out of sincere hospitality.
What I don’t love about Kyiv:
Historic sites Kyiv is so full of interesting historic places and museums that there is no excuse to be bored.
Disregard for architecture There seems to be rampant disregard for historic buildings that get razed to make room for chic, sleek expensive hotels. It seems the oligarchs and politicians (is there a difference?) have no respect for history or culture.
Public transportation It is easy and inexpensive to get around Kyiv. There are many options, though the metro could use maps
Unhealthy habits Come on guys, quit spitting on sidewalks all of the Æ12 time, it so gross! Yuck!
Victor Tereshkovsky, student “I don’t believe it. These are only groundless suspicions. His guilt isn’t proven yet. But it could happen here. Money and power are two factors which allow our politicians to abuse their powers. According to laws, politicians have to publish information about their profits. But they don’t do it.” Sergey Andrievsky, builder “I believe he could have and because of it, it’s impossible to absolve it. As for our politicians, they think that they can do anything. Because of this, they abuse their power.” Anna Ivanenko, pensioner “Of course, I believe he could do so and therefore he should be removed from his post. Those in power abuse their powers … and we have it time and again. Their personal business becomes the public’s business when they are breaking the law.” Valeria Getman, student “It may be just a PR attack, but it is necessary to look into, and it’s necessary to pay attention to all his previous actions. Only then can we judge whether he could have done so or not. I’m 70 percent sure we have abuse of power here. Politicians abuse their powers because they have a lot of money.”
6 Business Gap looks to expand further, plans Ukraine, Serbia stores Reuters – Gap Inc plans to open stores in Serbia and Ukraine, as the company keeps working on its strategy to grow internationally as domestic sales soften. The company is working through new agreements with existing franchise partners, and will open stores in the cities of Belgrade and Kiev this year, Gap said in a statement on May 13. The stores will sell the Gap, GapKids and babyGap brands, said the company, which also operates the Old Navy and Banana Republic chain. Gap has relied increasingly on franchisees to raise its presence overseas. As of January, Gap had 178 franchiseoperated stores abroad, up from 136 a year earlier. Gap now has franchise agreements in 28 countries, and plans to double its number of franchise stores to 400 by fiscal year 2015. Even abroad, Gap has been looking to revitalize sales. In fiscal 2010, sales at its stores overseas open at last a year rose only 1 percent.
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May 20, 2011
Kyiv court nationalizes Rusal's factory KYIV P OS T STA F F
A Ukrainian court claims to have renationalized a Zaporizhya-based aluminium smelter owned by Russia’s Rusal, the world’s largest aluminium producer, allegedly for failing to fulfill investment obligations. Ukrainian prosecutors said on May 18 that Kyiv’s Appellate Business Court had one day earlier nationalized a 68 percent stake in the factory. But Rusal, owned one of Russia’s most influential oligarchs, Oleg Deripaska, shot back
in a statement insisting that it still remained in control of the factory, valued by analyst at “hundreds of millions of dollars.� Rusal pledged to challenge nationalization as high as Ukraine’s Supreme Commercial Court. According to the London-based Financial Times newspaper, the standoff demonstrates that courts under President Viktor Yanukovych – long labeled as pro-Russian by critics – do not shy away from challenging the business interests of Russia’s most influential oligarchs. “This is one of the first sizable
assets in Ukraine taken away from big Russian businesses by Ukraine’s leadership,� Vadim Karasiov, head of Kyiv’s Global Strategies Institute told the Financial Times. “It shows that Yanukovych is not pro-Russian, as he was earlier labeled to be. In contrast, he represents the interests of Ukrainian business clans, which from time to time compete with Russian oligarch-business clans.� Kyiv officials insist the dispute is about business, not politics. Ukrainian prosecutors said the court
found that Rusal’s affiliates had failed to uphold investment obligations. Rusal has sharply cut production over the years, from 112,800 tons in 2008, halting it earlier this year after Ukraine’s government declined to lower electricity tariffs. Rusal says operating the plant under current tariffs is not profitable. Experts said there were no signs that Ukraine would next try to nationalize Rusal’s more prized asset in Ukraine, Mykolayiv Alumina Plant, which produces raw materials used in making aluminium.
IMF: Talks on hold until reforms adopted Reuters – Ukraine must pass vital financial and pension reforms before it can resume talks with the International Monetary Fund to resume a suspended loan program, the IMF’s country representative said on May 16. Max Alier said there had been no IMF missions to Kyiv since February and none were planned until after the reforms were passed. “As of now, we’re waiting for progress... before we set up dates for the (next) mission,� he told Reuters on the sidelines of Adam Smith Conferences’ Ukrainian Investment Summit.
ÆOn the move HAIM KAPELNIKOV was promoted to general director in Ukraine for Avis, the international car rental and leasing company. Kapelnikov was previously chief executive officer at the VIP Rent Avis Ukraine, a division of the company. Kapelnikov has more than 20 years of work experience in the financial, insurance and social sectors. He has previously worked in Ukraine for the VAB banking group as a deputy chairman of the board and corporate business director. He also served as a member of the supervisory board in VAB Leasing. Kapelnikov has also worked as marketing director at Tel-Aviv Technical College. Kapelnikov graduated from Open University in Israel and holds a bachelor’s degree in management and social sciences.
Ukraine’s $15 billion IMF program has been effectively frozen by Kyiv refusal to implement unpopular austerity measures such as raising the retirement age and hiking consumer gas prices by 50 percent. The IMF refused to release a $1.6 billion loan tranche scheduled in March after the government failed to pass a pension reform bill and watered down gas price increases for households. “Structural reforms have been lagging, not for the last two years but for a number of years,� Alier told the confer-
ence. He said Ukraine needed to bring down its “outrageous� level of pension expenditure, which at 18 percent of gross domestic product is one of the highest in the world. “This (reform) is very important for Ukraine’s mediumterm sustainability,� Alier added. Savings from a reduction of pension spending could be better deployed to infrastructure, health and education, he added. The IMF also wants Kyiv to repeal a measure introduced during the financial crisis that required the central bank to buy recapitalization
bonds from banks. “This is an extraordinary measure that made sense during the crisis and was meant to expire end-2010,� he said. Alier also warned that Ukraine’s non-performing bank loan levels were high. Though international bad debt measures are not strictly comparable, Ukraine’s NPL level may be about 30 percent of total loans, he said. Ukraine’s hryvnia currency has been under pressure since March when the IMF suspended the loan disbursement.
Send On the Move news to otm@kyivpost.com or contact Kateryna Panova at 234-6500. Items should include a photograph of the individual who has recently been appointed to a new position, a description of their duties and responsibilities, prior experience as well as education. Note: The Kyiv Post does not charge for publishing these notices or any news material.
ELENA ALEKSEEVA
VYACHESLAV HNATYUK has
was appointed vice president at TNKBP Commerce, a Ukrainian branch of the TNK-BP petroleum company. Alekseeva started working for TNK-BP in 2002 as head of oil products export department. Since 2005 she worked as head of sales, trading and logistics at the company. In her new position, Alekseeva will retain responsibility for sales, trading and logistics and is expected to help secure maximum profit for TNK-BP operations in Ukraine and Belarus. Alekseeva started her career in the 1990s in Moscow at the representative office of Glencore, one of the world’s top commodities traders. She then headed operational management in CIS countries for Projector SA, a company active in the oil and real estate markets. Alekseeva graduated Moscow State Linguistics University, where she studied English and French.
joined EnGarde Attorneys at Law as a public relations manager and translator. He will be responsible for communication with media, the firm’s business partners and society. Previously, Hnatyuk worked at Quisma GmbH, a German internet marketing agency, as a writer and assisted in communicating with CIS clients. Prior to that, he worked as a translator at Vasil Kisil and Partners, a Ukrainian law firm, as well as Ukrsotsbank, a leading Ukrainian bank. Hnatyuk also taught English at Taras Shevchenko University in Kyiv and at the Mykhailo Kotsyubynsky Pedagogical University in Vinnytsya. Hnatyuk studied Linguistics at the Universities of Munich, Basle and Vinnytsya. He also studied political science at KyivMohyla Academy.
OLGA ROMANENKO was appointed general director at Denza LLC, a retail company that arranges offices in Ukraine. She will be responsible for all matters related to company management and development. Romanenko began her career at Denza in 2004 as a member of the sales department. Romanenko graduated from Kyiv National University of Construction and Architecture. She also studied at the Stockholm Royal Institute of Technology, majoring in management of land and real estate, where she received her master’s qualification.
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Business 7
May 20, 2011
Consumers score deals as discount websites flourish BY O K S A N A FA RY N A FARYNA@KYIVPOST.COM
In the West, one Internet service offering online deals to consumers is already a web and financial sensation. In Ukraine, its clones are helping many people move closer to enjoying the same lifestyle they had before the economic crisis. Globally, this startup is about surprise and saving money. The buzz is about Groupon, the Internet merchant based in Chicago, which sells discounted deals for various services, from restaurants to bungee jumping. The basic idea is simple: Websites offer their subscribers 50 percent or more discount off a sushi dinner or spa treatment, but the deal only kicks in once a certain number of people have bought into it. The business gets free exposure, if not extra revenue. The customers get deals. Groupon or the knock-off firms that broker the deals get their cut of the action. Everybody wins, except perhaps traditional venues for advertising – television, radio and newspapers. As inflation continues its relentless pounding on pocketbooks, many people are cutting down their expenses, helping push the popularity of these online discount and deal-of-the-day warehouses. The idea sprang in the United States in 2008 and quickly expanded into more than 44 countries. Groupon’s
The wild success of Groupon in brokering deals online between businesses and customers has spawned numerous imitators, including Pokupon in Kyiv.
business model became so popular that hundreds of clone sites soon took off. According to Forbes, the company is on track to make $1 billion in sales faster than any other business ever. In Ukraine, there are a number of sites that offer similar services: SuperDeal, Gorod24, KupiKupon and Biblion are among those that surprise their subscribers with daily discounts. Pokupon is one of the biggest merchants, claiming a half-million users
since its launch a year ago. Deena Malkina, an American citizen who grew up in Kyiv, learned that 77 percent of Groupon’s customers were women and decided to start her own business – BeautyBloc.com – focused specifically on beauty-related deals. “Selling at such deep discounts is a good business for those vendors who have low marginal costs,” explained Malkina. “For example, a salon has the fixed cost of rent and salaries, but very
low marginal costs of products. So if their appointments are not being filled, it makes business sense to sell these slots at a discount rather than not sell them at all.” Through her service you can even cash out in Ukraine purchasing a $120 gift set of skin and body care products for $49. After adding $20 shipping costs, it will still be less expensive than its face value in the U.S. A key to being a good business in the long term is growing the subscribers’ database and finding great deals that customers are interested in, Malkina said. A customer that first discovers a product or service at a big discount has a great experience and comes back to pay the full price later. For companies such as Groupon it is also a good business. They get a percentage of every purchase. Groupon, for example, takes half of every sale. Ukrainian Pokupon takes 20 to 30 percent. “I really fall for the discounts,” said 21-year-old student Maria Rydvan, who buys coupons and certificates with money off several times per month. “Even if I do not plan to buy something, when I see a discount, I think: why don’t I buy it?” Another student, Svitlana Kisiliova, 20, said she likes the idea of group discounts very much but still does not understand why deals are so cheap and how the websites earn money. “I have a feeling that there is a trick somewhere,” she said.
“This mechanism of collective discounts is really a breakthrough in advertising for small businesses,” said Oleksandr Lastovsky, head of Pokupon. “Earlier, there was no marketing mechanism that would attract customers through the Internet and work instantly [in contrast with traditional prepaid advertisements].” But not everything’s always smooth and sterile with discounted deals. Sometimes customers don’t receive coupons through their email on time or don’t get them at all until they complain to customer service. The biggest problem is that coupon owners sometimes get second-hand treatment. “For ordinary clients they deliver sushi at any time of the day, but for those with a discount – when they have free time,” said Rydvan describing her experience with a sushi restaurant. Pokupon managers encourage users to report on these cases and promise to cancel partnerships with these companies. Customers dissatisfied with the product can ask for their money back through their web-account and can use them for another deal. Kyiv Post staff writer Oksana Faryna can be reached at faryna@kyivpost.com Find best discounts in Kyiv at: http://pokupon.com.ua www.superdeal.com.ua http://gorod24.com.ua
CONFERENCE on Legal Compliance with the New UK Bribery Act and Other Anti-Corruption Laws
25 May 2011 at the Hotel InterContinental Kyiv This Conference is principally focused on the UK Bribery Act, "Failing to Prevent Bribery", and its extraterritorial application in Ukraine to payments and other compensation by private persons, etc. In addition, a summary of the current status of US anti-corruption laws and the new Ukrainian antimoney laundering and anti-corruption laws will be provided. Participation is free for members of the BUCC and ACC. A fee of Euro 100 applies for non-members. Please RSVP by email to: BUCCUkraine@gmail.com or by phone to: (044) 490 60 00, (044) 490 58 00
Sponsored by:
British American Tobacco, SCM and TNK-BP
8 News
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May 20, 2011
Yanukovych approval rating slips to 11 percent in nation BY M A R K R AC H K E VYC H
President’s approval rating
RACHKEVYCH@KYIVPOST.COM
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Viktor Yanukovych’s approval rating is dipping down into Viktor Yushchenko territory. In April, the president’s rating reached an all-time low of 11 percent, down from 41 percent a year ago, according to Kyiv think tank Razumkov Center. Yanukovych’s predecessor, Yushchenko, ended his five-year presidency in 2010 with public support measured only in the single digits. But the president’s people say they aren’t alarmed. Andriy Yermolaev, a presidential adviser, said Yanukovych’s post-election ratings dip is to be expected. “Naturally, Yanukovych’s rating has dropped from when voters were mobilized” before his Feb. 7, 2010, election as president, Yermolaev said. Support for Yanukovych has plunged sharply since he took over as president, sinking in parallel with consumer confidence amid rising inflation. “The growth in prices for food produce and housing and utility services has negatively reflected on the support level of Ukrainians for the president and the Party of Regions,” Austria’s Erste Bank said in a May 17 report. Citing recent surveys, Erste warned that consumer confidence and infla-
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Apr. 2011
President Viktor Yanukovych is becoming almost as unpopular as his predecessor, Viktor Yushchenko, who lost his re-election bid last year with less than 5 percent of the vote. The Razumkov Center has found that only 11 percent of people fully support Yanukovych, a sharp drop from his 41 percent approval rating after his 2010 election.
tion on essential goods could lead to popular unrest. That gauge inched up slightly in April after dipping in prior months to levels last seen during the 2009 recession, according to a monthly index produced by GfK Ukraine. “[A] slowdown in price increases in April calmed consumers to some
Consumer Confidence Index in Ukraine
100
Aug. 2010
Source: Razumkov Center
120 110
May 2010
+ –
80 70 60 50 40 2009 2010 Source: GfK Ukraine, International Centre for Policy Studies
2011
Hit by inflation on essential goods, consumer confidence is hovering near lows last seen during the 2009 recession.
extent, but the credibility of economic policy remains at a low level,” GfK said. GfK said citizens blame the Yanukovych administration. Consumer spending in Ukraine drives 60-65 percent of economic growth, according to investment bank Astrum, making expectations important economic indicators. A pollster who has reportedly worked for Yanukovych’s Party of Regions, Yevhen Kopatko of Research and Branding, said that the public’s attitude is down because of painful austerity measures. Another recent Razumkov Center survey indicated that 42.5 percent of respondents said they were ready to take to the streets to protest “significant price jumps in essential goods and services.” Government forecasts put this year’s inflation rate at 8-9 percent, a target that pleases Ukraine’s main creditor, the International Monetary Fund,
which bailed out Ukraine last year with a $15 billion credit line. However, Razumkov’s Vasyl Yurchyshyn said inflation will reach 12-13 percent. As energy prices climb, Yurchyshyn said housing, transportation and utility services will as well. Sixteen percent of Ukrainians said they have difficulty coming up with money to buy food while 44 percent said they have enough to buy food but not for other essentials like clothing. Only 32 percent said they have enough of a monthly income with which to buy essential goods and still save money, a late 2010 Razumkov study said. “The public’s pessimism is natural. They don’t see a way to improve their lives,” said Ihor Zhdanov, president of Open Politics, a Kyiv-based policy center. While critics compare Yanukovych’s power grab to the way Russian Prime Minister Vladimir Putin solidified his grasp, one big difference is that Putin in petro-dollar rich Russia has man-
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aged to maintain a high approval rating – 69 percent in March, according to Moscow pollster Levada-Center. By contrast, in Ukraine, analysts say that while rich businessmen close to the president have handsomely profited from inside dealings, Yanukovych has failed to deliver changes that help millions of ordinary citizens. After giving him the benefit of the doubt last year, investors are also expressing disappointment publicly. Reform has ground to a halt in Ukraine, investors said during the seventh Adam Smith Conference summit in London, according to InterfaxUkraine on May 16. “I’m very disappointed with Ukraine: prospects were good a year ago and it seemed that remarkable people in the administration will not only talk, but also promote reform,” said Royal Bank of Scotland’s Timothy Ash in London. “The risk for Ukraine is that other, newer markets will bypass it,” said Roland Nash of Verno Capital. “Mongolia’s gross domestic product per capita already exceeds Ukraine.” Yermolaev, the longtime political adviser to Yanukovych’s Party of Regions, said the public had unrealistic expectations for quick improvement. Political scientist Zhdanov said authorities are not helping themselves. He said Victory Day clashes in Lviv on May 9 between Ukrainian nationalists and pro-Russian groups over the display of the red Soviet flag was orchestrated by authorities to distract attention from economic woes. “They artificially want to divide the country in order to set the stage for Yanukovych to face a boogey man radical nationalist for president in 2015,” Zhdanov said. Zhdanov also said the new tax code is hurting small businesses. “These are people who stand in the cold and sell goods in order to survive,” Zhdanov said. “The new tax code is destroying these small businesses.” Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com.
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News 9
May 20, 2011
From exile in Czech Republic, Danylyshyn launches group, may seek seat in parliament BY OL ENA TREGUB SPECIAL TO THE KYIV POST
Police officers clash with protesters in front of parliament in Kyiv on May 14.
Protesters shout slogans during a protest in front of parliament in Kyiv on May 19.
Yanukovych critics start new protests BY Y U R I Y ON YS H K I V ONYSHKIV@KYIVPOST.COM
Crowds of Ukrainians clashed with police while protesting President Viktor Yanukovych's economic and political policies, which critics say are moving the nation further away from a freemarket democracy. Hundreds of demonstrators launched the spring round of protests with a “Day of Anger� on May 14, demanding the resignation of Yanukovych and Verkhovna Rada lawmakers. About 1,500 protesters gathered again on May 19, also at Kyiv’s Mariyinsky Park. They protested rising prices, cronyism, demanded higher wages and pensions.
On May 14, police detained several activists and charged them with minor violations. Protest leader Oleksandr Danylyuk said law enforcement threatened to arrest him for holding unsanctioned protests. Police say a court order banned gatherings at the site. The police intervened when protesters tried to set up tents in Mariyinsky Park. Unlike on May 14, on May 19 the protest went without clashes. The people who gathered were a mix of youth, small business owners and pensioners. More protests are planned. Kyiv Post staff writer Yuriy Onyshkiv can be reached at onyshkiv@kyivpost. com. Photos by Yaroslav Debelyi, AP
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PRAGUE, Czech Republic – Bohdan Danylyshyn is out of Ukraine, but not out of Ukrainian politics. In January, the former economy minister in ex-Prime Minister Yulia Tymoshenko’s government won political asylum in the Czech Republic after prosecutors in Kyiv accused him of misspending almost $2 million in government money. On May 12 in Prague, Danylyshyn held court with journalists to announce the establishment of Ukrainian European Perspective, a non-profit organization with the ambitious goal of turning Ukraine into a genuinely European and democratic country. He also told Channel 5 that he may run for a seat in Ukraine's parliament, the Verkhovna Rada, during elections in 2012. Danylyshyn said his new non-governmental organization will call attention to the problems under President Viktor Yanukovych and lobby in European Union capitals. His office in the Czech capital is Politickych Veznu 19, a street named in honor of political prisoners. Exiles and dissidents from other countries often become governmentsin-exile that support opposition groups back home, media and influential public figures. However, Danylyshyn appears to have a long way to go. He is, for now, the only major Ukrainian politician in exile. The only Yanukovych political critic residing abroad and visting Danylyshyn in Prague was Mykhaylo Pozhyvanov, former head of the State Reserve Committee in the Tymoshenko government. He resides in Austria. Danylyshyn chose his words carefully. “It’s unnecessary to criticize the government. They are discrediting themselves while they make their own glaring mistakes,� he said. “Our main task is to make Ukraine feel not like an outcast in Europe, but as an equal, reliable partner, which has the ability and capacity for fullfledged integration with the European
Then Economy Minister Bohdan Danylyshyn and Prime Minister Yulia Tymoshenko in a 2008 photo. (Ukrinform)
community in all spheres of life,� Danylyshyn added. Danylyshyn did not reveal his financial backers. “We’ll have individual membership, corporate membership. We are ready to discuss cooperation with any organization from Ukraine and outside Ukraine, EU institutions that deal with NGOs,� he said. Vasyl Danyliv, chairman of Danyliv Capital and Ukrenergy Holding, said he is backing the project. Under the Tymoshenko government, he controlled a share of energy exports from Ukraine to Europe. Danyliv said his aims are altruistic. “I am doing this purely because it’s good for Ukraine,� Danyliv said. Danylyshyn’s asylum case was a heavy blow to the Yanukovych administration’s image internationally. The Czech Republic’s decision to grant Danylyshyn asylum gave credence to allegations that law enforcement loyal to Yanukovych was engaged in politically motivated prosecutions and persecutions. Since Yanukovych narrowly beat Tymoshenko in a February 2010 presidential runoff vote, his administration has launched dozens of investigations into former officials in her 2007-2010 government. A handful of her allies
have been in pre-trial detention for months. Yanukovych's administration has repeatedly denied allegations of political persecution. One Yanukovych supporter, Party of Regions lawmaker Vadym Kolesnichenko, went so far as to claim that Danylyshyn was granted asylum as a result of corrupt ties between Tymoshenko and European authorities. Ukrainian journalists who traveled to Prague at Danylyshyn’s expense got invited to speak with the Security Services of Ukraine upon their return. The security agency, known as the SBU, also held a news conference announcing that two Czech “spies� would be expelled from Ukraine. The reaction of the Czech Foreign Minister Karel Schwarzenberg was swift: “I suspect that here we should talk not about spying but about payback for granting political asylum to Danylyshyn.� Ukraine's Foreign Ministry denies this. As for Danylyshyn, he says his NGO will keep him busy and closer to Ukraine while living abroad. “My soul has been and remains with Ukraine,� Danylyshyn said. Olena Tregub is a freelance journalist.
10 News
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May 20, 2011
Racially motivated attacks on the rise Æ1 of suspected racially motivated attacks were reported to us. We are currently in the process of verification. In comparison, for the whole of 2010 only six cases of violent attacks were reported,” said Manfred Profazi, head of the International Organization for Migration in Ukraine. The beating of Igbokvum was classified by law enforcers as “hooliganism,” despite his attackers shouting racist slurs as they beat him with their fists. Igbokvum came to Ukraine from Nigeria 18 years ago and is now a Ukrainian citizen who runs his own business selling jeans and sneakers. “I have many friends and acquaintances who were attacked because they were black,” Igbokvum said. “Somehow I was lucky before and now it happened to me as well.” Igbokvum came to Ukraine from Nigeria 18 years ago and is now a Ukrainian citizen who runs his own business selling jeans and sneakers. “I have many friends and acquaintances who were attacked because they were black,” Igbokvum said. “Somehow I was lucky before and now it happened to me as well.” The attack on Igbokvum drew attention from the public and police after a witness uploaded the video on the Internet. Experts say most of similar attacks go either unreported or inadequately investigated by police. On March 24, an Indian and a Pakistani were beaten on Maidan Nezalezhnosti (Independence Square). A criminal case was not open because they did not see faces of their attackers. Another citizen of India, who is employed at the Indian Embassy in Kyiv, was attacked near his apartment on April 10. Many Ukrainian police officers are intolerant themselves, human rights activists said. “The police are one of the sources of racism in Ukraine,” said Dmytro Groisman from Vinnytsya Human Rights Group. Groisman cites the case of Firdousi Safarov, an Azeri who was beaten by the police in Mohyliv Podilsky of Vinnytsya Oblast. After being detained on April 2, Safarov was taken to a hospital with
Æ Rights activists say police part of the problem concussion and bruises after a few hours in the police department. Police says he resisted detention; the case is now investigated by Vinnytsya prosecutor. Human Rights Watch also said Ukrainian authorities are putting less effort than before in fighting hate crimes. According to its 2010 report, authorities stopped monitoring of hate crimes, which it had started in 2008. “Back in 2008-2009 there was a plan to fight racism, and cooperation between police and prosecutors on hate crimes was established. They worked with human rights activists as well. Now, we are not even aware of
any hate crimes monitor and do not have access to any information,” said Iryna Fedorovych from the Without Borders project. Despite criticism, police say statistics are improving as not a single case under the hate crime article of the criminal code. Human rights activists said the positive figures are a smokescreen, achieved by classifying hate crimes as “hooliganism.” “There is no understanding among police and prosecutors that hate crimes are not just crimes against a person. They are crimes that imply an ideology which undermines the social structure,” said Vyacheslav Lihachov from the Congress of National Communities, a nongovernmental organization that has monitored hate crimes since 2006. Despite criticism, police say statistics are improving as not a single case under the hate crime article of the criminal code. Human rights activists said the positive figures are a smokescreen, achieved by classifying hate crimes as “hooliganism.” Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.com
Following are racially motivated attacks recorded by Diversity Initiative between January and April: (Diversity Initiative, IOM, UNHCR) In January (date not given), several students from Angola were beaten in Dnipropetrovsk; On March 8, two foreign students from Nigeria were attacked by a group of 15 young men near Kharkivska metro station in Kyiv. Policemen detained two youngsters but later released them; On March 17, a student from an Arab country was attacked on Velyka Vasylkivska Street in Kyiv; On March 18, a Somali asylum-seeker was attacked by three drunken males on a suburban train in Kyiv Oblast; On March 24, a group of seven Ukrainian youths attacked two foreigners, a Pakistani and an Indian, in the heart of Kyiv near the National Conservatory. The group didn’t attempt to steal money or other valuables; On March 26, two unknown persons attacked a student from Nigeria in Dnipropetrovsk. The student was returning to his dormitory when he received three knife wounds in his shoulders and neck; On April 2, two young men attacked a Ukrainian citizen of Nigerian descend in a metro carriage between the metro stations Khreschchatik and Arsenalna in Kyiv and beat him; On April 2, two more attacks were reported on Nigerians in Ternopil and Kharkiv. The reports are currently under verification; On April 10, a staff member from the Indian Embassy in Kyiv was attacked by a young man wearing a white face mask;
People sit around a portrait of late student Igor Indylo outside a police station during a commemoration ceremony in Kyiv on May 17. (Andriy Kravchenko)
Investigation ongoing in case of student who died in police custody Æ1 year, compared to 51 in 2010. “I think there are still some good chances for fair justice,” Indylo’s fellow student Viktoria Savych said. “But it can happen only if all the parties, both witnesses and suspects, start telling the truth.” On the anniversary of Indylo’s death, several dozen Kyiv students brought candles and flowers to the Shevchenkivsky district police station to renew their calls for justice. Kyiv police spokesperson Volodymyr Polishchuk was also invited to speak. “I am not saying that all police officers are innocent angels,” Polishchuk said. “A lot of criminal cases against policemen are being open now and the guilty ones are punished accordingly.” Polishchuk didn’t deny cases of torture, but said that greater use of video cameras to document evidence is meant to help. Students were not impressed. Attorney Oleh Veremiyenko said that video cameras in police stations won’t improve the situation dramatically, since police officers can beat detainees elsewhere. “The entire system needs to be changed,” Veremiyenko said. “At least
a witness protection program should be introduced so people would not be scared to testify against police officers. Also we should introduce the practice of trial by jury.” Oleksandr Khomenko, Indylo’s childhood friend and a key witness who accompanied him to the police department, gave contradictory and inconsistent testimony in the case. He could not recall the sequence of events and complained about memory loss. Indylo’s parents believe he was pressured by police into changing his testimony, something Khomenko denies. The students who came to commemorate Indylo also asked about Serhiy Pryhodko, the officer who detained Indylo and brought him to the station. According to Polishchuk, Pryhodko is suspended from his duties, but he can’t be fired unless the court finds him guilty. He has been getting paid all this time for performing no duties. Meanwhile, the Desnyansky district court has ordered further investigation into the case. Kyiv Post staff writer Olesia Oleshko can be reached at oleshko@kyivpost. com
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News 11
May 20, 2011
Klyuyev brothers score big with government’s solar energy deals Æ1 energy sources, including solar energy. But if preferences to develop these energy sources are given only to companies that are close to government officials, this will not improve the investment climate as it limits competition, making it impossible for other companies with better conditions and more affordable tariffs to come to this market in Ukraine,â€? said Volodymyr Omelchenko, an energy analyst at the Kyiv-based Razumkov Center. As of May, 45 companies in Ukraine were awarded green-tariff preferences. Activ Solar’s general director Mykhailo Cherevko told CleanTech magazine in March that it had followed the relevant legal procedures. “I does not matter whether you have a lobby, there is still a certain procedure stipulated by law,â€? he said. Following procedures implemented in the EU, the green tariff law in Ukraine was adopted in 2009. According to the law, the government agrees to a long-term, above-market price purchase agreement of electricity from power plants that use renewable energy sources -- such as wind, water and solar power to buy their electricity. All of the five solar power plants linked to Klyuyev are located in Rodnykove, a village outside of Simferopol, and are subsidiaries of Austrian solar energy developer and manufacturer Activ Solar GmbH, which in turn is part of the Activ Solar Holding GmbH. Activ Solar Holding GmbH is a subsidiary of SLAV Beteiligung GmbH,
which is part of Slav AG, a holding belonging to Andriy Klyuyev and his brother Serhiy, a lawmaker in the Party of Regions faction. SLAV Beteiligung GmbH is also connected to Slav AG and a number of other of the Klyuyev brothers’ assets through the same address of their official registration in Vienna on Wipplingerstrasse 35. Activ Solar’s representative office in Ukraine is located in the same building where “Ukrpodshipnik� and other Klyuyev companies are registered. The chief executive officer of Activ Solar is Kaveh Ertefai, Serhiy Klyuyev’s son-in-law. Neither Andriy Klyuyev nor Serhiy Klyuyev responded to Kyiv Post’s telephone calls or emails requesting comment for this article. In September 2010, National Electricity Regulatory Commission of Ukraine granted two of the companies – Crimea Solar 1 and Crimea Solar 2 – so-called green tariffs, a long-term purchase agreement until 2030 under the Ukrainian green tariff law. Last February, another three such companies – Crimea Solar 3, Crimea Solar 4 and Crimea Solar 5 – were also given green tariffs. All are subsidiaries of Activ Solar. In July 2010, Crimea Solar 1-2 were given preferences by the government for a duty-free import of solar panels worth 700 million euros and allowed them not to pay VAT. The National Electricity Regulatory Commission (NERC) is responsible for setting the green tariff price and decid-
Solar energy may be one way for energy-dependent Ukraine to break its grip on nuclear power and natural gas imports from Russia. (Courtesy)
Party of Regions lawmaker Serhiy Klyuyev (L) and his brother, Deputy Prime Minister Andriy Klyuyev, are capitalizing on government incentives to go big into solar energy, but can non-insiders get the same deals? (UNIAN)
ing which companies receive it. It set the price that the state will purchase electricity from Crimea Solar 1-5 at the highest rate – Hr 5.4 (0.47 euros) for a kWh, while the declared cost price of their electricity is Hr 2.56 (0.23 euros) for a kWh. The current head of the commission, Serhiy Titenko, is seen as close to the Klyuyevs. Titenko used to work as one of the top managers for the Klyuyev brothers’ holding Ukrpodshipnik and was a Regions Party deputy. Bohdan Sokolovsky, a former presidential adviser on energy secu-
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rity, said green tariffs are defined for power plants non-transparently. “It seems like there might be conflict of interest involved,� said Sokolovsky, speaking about the connection of Klyuyev brothers to Crimea Solar power plants. The European Business Association, a lobby of European businesses in Ukraine, also considers Ukrainian renewable energy market to be not particularly transparent. “On the surface everything looks perfect. There is a law which any investor can take advantage of. But
as of now some EBA members are saying that they are not able to take advantage of the great conditions that exist,� said Anna Derevyanko, executive director of the EBA. “Foreign companies that enter Ukraine’s renewable energy market are treated differently,� said Borovyk. “It is no good for the investment climate if only companies connected to government officials are getting green tariffs and other preferences. In such a way market mechanisms are distorted and competitiveness ceases to exist and it becomes clear to everyone that if you are not close to the government, then you will not be able to develop these types of energy.� In a response to the Kyiv Post inquiry, the National Electricity Regulatory Commission directed inquiries to the resolution on which its decisions on green tariffs are based. Kyiv Post staff writer Yuriy Onyshkiv can be reached at onyshkiv@kyivpost. com
12 Opinion/News Kauffman: People are fantastic in Ukraine, but way too rude at times Æ5
Poor hygiene Does anyone in this country brush his or her teeth? It gets rather revolting at times. Bathrooms I can’t get used to the weird squat toilets, regular toilets without seats, and no toilet paper. Come on folks, this is 2011. Does Ukraine really want to be a Third World country? Extreme rudeness I love living here, I really do, but I think Ukrainians are at times the rudest, meanest and pushiest people I have ever met. To quote one of my colleagues in Kyiv: “In their homes they will give you the shirt off their backs, but in the streets they very different... it is schizophrenic.” I get tired of being physically and roughly pushed out of people’s way without an “excuse me” or having the backs of my shoes stepped on. If this country is going to move forward, it must address this problem. I am serious. I think Ukrainians’ lack of manners hold the country back, because it influences so much at multiple levels of society and government. It is a very old, Third World mentality with profound negative consequences for Ukraine’s development. Dangerous drivers This is actually quite infuriating. I don’t like being honked at when I am walking on a sidewalk. That’s an excellent way to spoil a perfectly good mood. Excuse me Mr. Rich Driver in your BMW; what part of sideWALK, don’t you understand?! Speaking of sidewalks… I get tired of falling down in the winter because cities will not maintain their walks. I have never seen so many dangerously icy walks in my life. The walks are so dangerous that falling down becomes a topic of conversation with my Ukrainian colleagues at work. I just want to conclude by saying that I love Ukraine, and it’s going to be a sad day, indeed, when my work here ends and I have to return to the U.S. I would come back in a heartbeat! Lisle Kauffman is an American citizen living and teaching at Volodymyr Dahl East Ukrainian National University in Luhansk.
www.kyivpost.com
May 20, 2011
Euro 2012 organizers want volunteers to help tourists Æ1 nearly 12,000 volunteers to help the tournament run smoothly by guiding visitors, assisting journalists and supporting emergency workers. Organizers say these helpers will decide whether the tournament is a success, even more so than expensive stadium and road-building projects. “You can have great roads and stadiums, but Europeans are used to this,” said Mykola Vorobiov, coordinator of the volunteers2012.org.ua information portal. “If we don’t have professional human resources, such as volunteers, there’s no value in this entire modern infrastructure.” Unlike in the West, volunteering is not a common practice in Ukraine. The Ukrainian Philanthropists Forum said that one in five European Union citizens volunteer, whereas in Ukraine organized volunteering is at an immeasurably low level. But organizers hope Euro 2012 will help to change that. “The tournament is a chance to change the mindset of people and give them an understanding of volunteering as an integral part of society,” said Mariya Chubata, senior manager of the Lviv Euro 2012 Agency. Kyiv is already accepting online applications at: http://www.city-kyiv. com.ua/uefaeuro2012/volunteers/ registration UEFA will start accepting applications in June at http://www.uefa.com/ uefaeuro2012/volunteers/index.html.
Euro 2012 volunteers Host city/institution
Number of expected volunteers
Union of European Football Associations
5,000 (2,500 in each host country)
Kyiv
6,000
Donetsk
3,000
Kharkiv
1,500
Warsaw
1,200
Lviv
1,000
Gdansk
600
Poznan
600
Wroclaw
600
Source: www.ukraine2012.gov.ua
Æ Some 1.4 million tourists may come for 2012 games The desire ent to represent Ukraine as er a volunteer appears high. In its nth first month of accepting ons, applications, Kyiv, onee of the eightt host cities in Poland and Ukraine, an 3,000 more than applicants registered. Two-thirdss of them are women, while 85 percent ents. were students. Kyiv is looking to recruit lunteers. Lviv, another 6,000 volunteers. host city, is looking for nearly 1,000 n. on its own. nion of European Football The Union ns wants to recruit some Federations unteers for each country, in 2,500 volunteers addition to host city volunteers for help with corporate hospitality, logisdi It expects t to t receive i up tics and media. to five or six applications for every job, according to Andriy Bantser, UEFA’s volunteer manager in Ukraine. Chubata cited the more than 2,000 non-profit organizations active in the city as well as the high number of educational institutes from where she expects volunteers. “We have a young and vibrant city,” said Chubata. With such a large influx of people expected – 1.4 million visitors – hospitality and interpersonal skills will be paramount. “Volunteers are most likely one of the first people Euro 2012 visitors
Ukraine’s heavyweight boxing title holder Vitali Klitschko shows a projection of a logo during a recruitment for volunteers to help with the UEFA Euro 2012 in Kyiv May 12. (Alex Furman)
will meet after passing through passport and customs control,” Vorobiov said. Volunteers will be strategically stationed at airports and train stations to help visitors find their way. They’ll be located near stadiums, fan zones and fan embassies. Others will support police and medical personnel. Being the face of Ukraine is a demanding task. But according to Vorobiov’s information portal, 90 percent of the 2,000 registered users on the site stated they have no prior experience. “As you could see, young people
without prior experience are interested,” he said. “They want to see the championship from the inside and we must give young people from across Ukraine this chance.” Vorobiov hopes Euro 2012 will serve as just the beginning of widespread volunteering in Ukraine. “We don’t want to stop with Euro 2012. Volunteering is a social part of life and the championship is only the catalyst for volunteers in all of Ukraine,” he said Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com.
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May 20, 2011
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Lifestyle
Ukraine has many castles but only few outstanding ones. A castle in KamyanetsPodilskiy is a must-see.
May 20, 2011
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To some, tattoos part of identity
Former convict, Viktor Putilin (shirtless, at right), enjoys a picnic with friends. Many are his clients in a tattoo salon that Putilin opened in Sevastopol after he was freed from prison. (Maxim Chernov) BY N ATA L I YA H OR B AN HORBAN@KYIVPOST.COM
Every tattoo tells something about a person’s past: The name of a loved one, perhaps otherwise forgotten; a mysterious symbol that is (or was) in fashion; or blue numbers on fingers that hint at a criminal past. Sevastopol native Viktor Putilin, 41, knows more about the meaning of tattoos than most – because his life and health depended on it for several years. Sentenced to seven years in prison for stealing luxury cars, Putilin learned the art of tattooing from his deaf-mute cellmate using the most basic of tools – a sharpened guitar string. He not only learned the techniques for drawing, but also acquired crucial knowledge about
the meaning behind each dot on a prisoner’s skin. In jail, tattoos are much more than a permanent picture – they are a mark of who you are and your position in the hierarchy. “In prison everyone knows his place,� explained Putilin. Wearing a black jacket, Putilin speaks proper Russian – without a trace of prison jargon – fumbling with a ring on his finger. Deep scars furrow his face. Decoding a message behind each tattoo is like learning Chinese characters. An eight-point star is a sign reserved exclusively for top dogs; cards with the suit of hearts were tattooed on homosexuals; Christian symbols, like crucifixes and church domes were used widely, with the number of domes representing the number of times a person was sent to prison.
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The tradition of criminal tattoos predated the 1920s and became especially widespread after World War II, according to criminologist Oleksandr Kostenko. But with the evolution of society, criminal tattoos started to lose their significance from the 1970s. “The criminal world wanted to identify itself in order to survive, to oppose the world of law. Now they use simpler ways, either informational or oral,� explained Kostenko. During the Soviet period, tattoos could be drawn even against the will of a prisoner. Now getting a tattoo is up to everyone, unless a criminal breaks the rules of that society. For example, a tattoo mark of a rat is sometimes made forcibly on those who dare to steal off other convicts. “I have seen a man with a rat tat-
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tooed all over his back. Such a person will be treated very cruelly,â€? Putilin said. “You can be a very powerful figure in prison but have no tattoos at the same time.â€? Despite an overall decline in the significance of criminal tattoos, Putilin still takes them very seriously. In fact, it’s his skill as a tattoo artist that gave him a new start and an escape from his life of crime after he was released in 2005. He returned to his native Sevastopol and opened his own tattoo parlor. Now he is a real professional and is well-known enough to take part in the Festival of Tattoos, which will take place in Kyiv on May 20-22. “There are some crazy people who have no idea about the seriousness of criminal tattoos. If someone comes up to me and asks me to draw, say, Æ21
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Food Critic WITH YULIYA POPOVA POPOVA@KYIVPOST.COM
Fine dining i iin French cafe Gorchitsa Starters, just like desserts, are made to share. We often order a couple of tantalizing appetizers and then start passing the plates around. In the French cafe Gorchitsa, a chef took us by surprise and divided our Caprese salad in two. This was the first sign we were in for a professional dining experience. The cafe – sitting in the high-profile Lypky district, next to a court and the Interior Ministry offices – provides good food in polished, spacious surroundings at a reasonable price. With two highceilinged rooms and an eight-table terrace, it maintains an air of elegance. The decor behind a grand, white-and-gold front door is simple, yet stylish. Besides a couple of large, vintage posters and a book case, there is nothing else but food to relish in Gorchitsa. And so it should be in a restaurant. A two-page menu has 10 to 15 entries for each course. A basket of complementary crispy bread was served along with French Bordeaux (Hr 45 per glass) before our starters arrived. Apart from Caprese for Hr 68, in which even the tomatoes were skinned for a smooth combination with mozzarella, we had cream of broccoli soup for Hr 52. For gourmands, there are Burgundy snails in mustard sauce and pan-fried foie gras in balsamic sauce, each for under Hr 140. The main section of the menu is divided into pasta, meat and fish. On our first visit, we tried cat fish in Dijon mustard and a grilled Dorado with grilled vegetables on the side. The catfish (Hr 86) was served over a bed of finely-chopped tomatoes and cucumbers, which together with the grainy mustard dominated the fish’s unique flavor. The dorado, on the other hand, didn’t have enough flavoring for my taste but my partner enjoyed it as it was. Laid out like sun rays, grilled peppers, eggplants and carrots were a garnish we ordered again on our next trip to Gorchitsa for meat. Osso bucco – a cross-cut veal shank – was generously stewed for hours to bring out the best of flavorful beef and savory marrow. Soft like a pear, it was swathed in gravy with a couple of mange tout, among other vegetables on the side. A bone-in pork loin with small chunks of fat, like love handles, added to the juicy feast. The meat orders – each for under Hr 100 – were generous enough to skip dessert, which we sadly did. The overall food experience accentuated by the quiet splendor of the 19th century homes surrounding the cafe makes this establishment a place to return and invite your friends over. Don’t confuse it with Mon Ami restaurant in the same vicinity though – Gorchitsa started out in its spot, on Shovkovychna Street, a couple of years ago but then moved a few blocks away. Gorchitsa Cafe, 6 Pylypa Orlyka St., tel. 253-7358 Kyiv Post editor Yuliya Popova can be reached at popova@kyivpost.com
Monday, May 23
Entertainment Guide 15
May 20, 2011
Hot jazz Ukrainian bass player Ark Ovrutski is big enough to perform with the world’s most amazing jazz players. But he always keeps Ukraine in his heart and mind, inviting jazz stars to see his motherland. This time he brings Robert Anchipolovsky, a Soviet-born saxophonist from Israel, who is known as one of the best students of legendary American jazzman Phil Woods. Other musicians – Israeli piano player Roy Assaf and drummer Leon Joyce Junior from Chicago will join them. Singer Tecora Rogers will add a feminine touch to the men’s power on stage. Monday, May 23, 7:30 p.m., National Music Academy, 11 Khreshchatyk St., metro Maidan Nezalezhnosti, 279-1242, www.jazzinkiev.com. Tickets: Hr 100-250.
Saturday, May 21
Tap dance
Wednesday, May 25
Tap dancing turns a stage into a percussion instrument played with the feet of a dancer. That’s why it is considered not only a dance but also a form of music. Tap dancing is believed to have emerged in the 19th century, but triumphed when cinema and TV were invented. It became a permanent attribute of the first black-and-white films. Despite movies going digital, tap dance still exists. Meet dancers from the USA, Estonia, Latvia and Ukraine on Wednesday, May 25, Budynok Ofitseriv, 30/1 Hrushevskoho. Tickets: Hr 100-450.
(literarydancer.files.wordpress.com)
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New exhibition at PinchukArtCenter
Dmitry Baranov
(Yaroslav Debelyi)
One of the biggest centers of modern art in Ukraine, PinchukArtCenter is opening a new exhibition. A 16-piece collection of works by Danish artist Olafur Eliasson – “Your Emotional Future,” will take three floors of the gallery. Eliasson is known for large-scale artwork that deals with light, water and air-temperature. He collaborated with Louis Vuitton and Berlin Opera House, among other big names. In Kyiv, he explores people’s relationship with reality from social, emotional or technological aspects in his art. Along with Eliasson, there will be two more exhibitions. “Collection Platform 1: Circulation” will become a permanent exhibition of selected works by Ukraine’s and world’s leading artists. The second exhibition "Blow Up" is devoted to Arsen Savadov, a Ukrainian modern artist, who explores themes of sexuality and artistic freedom in his photo collages. From Saturday, May 21, 12 a.m. - 9 p.m., Tuesday-Sunday, www.pinchukartcentre.org/ en. Free admission.
Europe Day in Kyiv No, this is not another day off but still a good reason to party. Observed mostly by countries in the European Union, Europe Day is an annual celebration, commemorating peace and unity in Europe. Ukraine adopted the gig in 2003 and now the holiday rolls around most Ukrainian cities. In Kyiv, the holiday will start with a parade and followed by an opening of a European Town where countries will set up tents either with ethnic food, entertainment or just to distribute informational fliers. With Euro-2012 just around the corner, football fans will enjoy soccer-inspired graffiti, foosball, face art and the like. To remind people to smile more, Mariyinski Park will turn into the Street Gallery of Smileys, with professional painters decorating benches with smiley faces. For those willing to experiment with a brush, all the materials will be provided. Saturday, May 21, from 12:00 a.m, Maidan Nezalezhnosti. Free admission.
Compiled by Nataliya Horban
From Saturday, May 21
16 Entertainment Guide
www.kyivpost.com
May 20, 2011
Movies
Live Music MASTERCLASS CINEMA CLUB 34 Mazepy St., 594-1063. «Song of the little road» May 24 at 7 p.m.
A scene from Indian classic ‘Song of the Little Road.’ (photobucket.com)
Quartert ‘BangladeshOrchestra’ plays cover versions of popular songs. (Courtesy)
KYIV CINEMA 19, Chervonoarmiyska (VelykaVasylkivska) St., 234-7381. Shorts attack! May 19 - May 25 at 3:40 p.m. and 7:30 p.m. ZHOVTEN 26, Kostyantynivska St., 205-5951. Shorts attack! May 20 - May 25 at 5 p.m., 6:30 p.m., 8 p.m.
SONG OF THE LITTLE ROAD India, 1955 Language: English with Ukrainian subtitles Directed by Satyajit Ray Starring Kanu Bannerjee, Karuna Bannerjee, Subir Bannerjee Indian cinema is all about singing and dancing. That's what most people think. But that's not true. At least not always true. Some of the Indian movies are contemporary classics. And «Song of the little road» is definitely one of those. The movie tells a breathtaking story of an ordinary Indian family at the dawn of the 20th century. Apu is born into a poor family. His father is a poet and a priest who can't do anything to save his family from poverty. Apu's sister is stealing from
neighbors’ orchards. His mother spends days quarreling with an old aunt. The life itself seems to be an endless chain of wasted days and unfulfilled dreams. But to be human means to have dreams and a kind heart. That's what Apu learns and so you do along with him. Don't miss this wonderful movie. It has every chance to become one of your favorites if you expect something more than mere entertainment when the lights go out in the cinema. SHORTS ATTACK! Language: Original with Ukrainian subtitles Short movies often require more talent than usual ones. The director has no time
• Friday, May 20: a concert of medieval music with pieces by British composer William Byrd at 8 p.m., Cultural center Master-Klass, 34 Mazepy St., metro Arsenalna, www.masterklass.org/eng, 594-1063. Tickets: Hr 30. • Saturday, May 21: a concert of accordion music played by Ihor Zavadsky at 7 p.m., Budynok aktora, 7 Yaroslaviv Val St., 235-2081, www.actorhall.com.ua. Tickets: Hr 50120. • Tuesday, May 24: concert of clarinet and organ music with pieces by Debussy, Franck and Vierne at 7:30 p.m., The House of Organ Music, 77 Velyka Vasylkivska St., 528-3186, www.organhall.kiev.ua. Tickets: Hr 20-50. • Wednesday, May 25: jazz with Oleh Pashkovsky quartet at 8 p.m., Cultural center Master-Klass, 34 Mazepy St., metro Arsenalna, www.masterklass.org/eng, 594-1063. Tickets: Hr 40.
(www.fullissue.com)
Best classical picks
to build the plot, to go deep into the characters’ lives, surround them with details and features that help understand who they are. A story must be told in a few minutes. And only those endowed with an art of storytelling can make it happen. Berlin festival «Interfilm» presents a selection of short films from all over the world. Some of them won the best prizes in Cannes and other respected festivals. Some true masterpieces to be found here. For example a story of two lovers who survived the Apocalypse. A story about the girl's imagination – a main source of her troubles. A story about an alien who comes to Earth and can't tell the difference between love and catastrophe. A love story about a diver and a fish...
Compiled by Alexey Bondarev
ART CLUB 44 44B Khreshchatyk St., 279-4137, www.club44.com.ua Concerts traditionally start at 8 – 10 p.m. May 20 Dilya, Bangladesh Orchestra, Hr 50 May 21 AC/DC Cover Party, Hr 50 May 22 Soiuz 44 Jam Session, free admission May 23 Pavel Galitsky, free admission May 24 Spring Jazz Nights: New Generation, Kostyantyn Ionenko, Hr 30 May 25 Drymba ta Dzyga, free admission May 26 Nirvana Unplugged Cover Party, Hr 40 DOCKER’S ABC 15 Khreshchatyk St., 278-1717, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. May 20 Grazhdanin Topinambur, Tex-Mex Company, Hr 70 May 21 Motor’ Rolla, More Huana, Hr 70 May 22 Foxtrot Music Band, free admission May 23 Animals Session, free admission May 24 Bangladesh Orchestra, Hr 20 May 25 The Magma, Hr 30 May 26 Ot Vinta, Karnavalnaya Zhara, Hr 30 DOCKER PUB 25 Bohatyrska St., metro Heroyiv Dnipra, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. May 20 Motor’ Rolla, Red Rocks, Hr 70 May 21 Ot Vinta, Gera and Second Breath, Hr 70 May 22 Sergey Galanin Acoustic Performance May 23 Lemmons, free admission May 24 Tres Deseos Latino Party, free admission May 25 Partizanskie Vytivky, free admission May 26 Park Gorkogo, Tex-Mex company
BOCHKA PYVNA ON KHMELNYTSKOHO 4B-1 Khmelnytskoho St, metro Teatralna, 390-6106, www.bochka.com.ua Concerts traditionally start at 9-10 p.m. May 20 Tres Deseos, Chill Out May 21 Lucky Band, Beefeaters May 22 Svyata Vatra (Estonia-Ukraine), Hr 40 May 26 Nicolas Tim Band PORTER PUB 3 Sichnevogo Povstannya St., 280-1996, www.porter.com.ua Concerts traditionally start at 7:30 p.m. May 20 Pozitiv Band May 21 Tartila May 22 Radiolla May 25 Ivan Bliuz May 26 Horoshiy, Plohoy, Zloy, Other live music clubs: JAZZ DO IT, 76A Velyka Vasylkivska St., 28956-06, www.jazz-doit.com.ua GOLDEN GATE IRISH PUB, 15, Zolotovoritska St., 235-5188, www.goldengatepubkiev.com/ TO DUBLIN IRISH PUB, 4 Raisy Okipnoi St., 569-5531, http://www.to-dublin.com.ua/ PIVNA NO.1 ON BASEYNA, 15 Baseyna St., 287-44-34, www.pivna1.com.ua DRAFT 1/2 Khoryva St., metro Kontraktova Ploshcha, 463-7330 KHLIB CLUB 12 Frunze St., www.myspace.com/xlibclub CHESHIRE CAT 9 Sklyarenko St., 428-2717 O’BRIEN’S 17A Mykhaylivska St., 279-1584 DAKOTA 14G Heroyiv Stalinhrada St., 4687410 U KRUZHKI 12/37 Dekabrystiv St., 562-6262.
Compiled by Svitlana Kolesnykova
INDIAN CUISINE
www.sutrakiev.com.ua
– Halal on request (063 077-99-99)
– Wi fi
Kiev • Metro Station "Politekhnicheskaya" 3 Gali Timofeyevoy Str. ("TMM" building) • 569-37-66 • 097 077-99-99
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May 20, 2011
Lifestyle 17
After one punch, Klitschko brothers keep promise not to fight each other BY R I C K WA R N E R (C) 2011, BLOOMBERG NEWS
NEW YORK – Wladimir Klitschko vividly remembers the day his older brother Vitali introduced him to boxing. “He hit me so hard I saw stars,” Wladimir recalled. “I thought, ‘This is not for me.’ “ He was wrong. Wladimir followed Vitali into the sport and both Ukrainian giants became champions. They’re the first siblings to hold heavyweight titles at the same time. They’re also the first boxing champions with doctorates in sports science and fluency in four languages. Their improbable story is told in “Klitschko,” a documentary that will be released this fall in the United States. Sons of a Soviet air force officer who helped clean up Chornobyl after the 1986 nuclear plant disaster, the Klitschkos have dominated the heavyweight division for the past decade. Wladimir, 35, is currently recognized as champion by four boxing authorities -- the IBF, WBO, IBO and The Ring magazine. Vitali, 39, holds the WBC title belt. The brothers have turned down lucrative offers to fight each other, fulfilling a promise they made to their mother. “I wouldn’t do it, even for $1 billion,” Wladimir said, stretching out his 6-foot-6 frame (one inch shorter than his brother) on a sofa in the lobby of a plush Manhattan hotel. “You can’t put a price on your mother’s heart.” Some boxing experts accused Wladimir of having no heart -- and no chin -- after he was pummeled by Corrie Sanders and Lamon Brewster over a 13-month span in 2003-04. But he’s won 13 straight bouts since then,
ÆUnlike many star athletes, the Klitschko brothers, Wladimir and Vitali, are deeply involved in social and political issues. Vitali has twice run for mayor of Kyiv. including a rematch against Brewster. “I was very motivated to prove that my critics were wrong,” Wladimir said. “I always believed in myself, even when others didn’t. I think that’s the message of the film: When you get knocked down in life, you need to get up and keep going.” He and his brother learned that lesson from their father, who was stricken with cancer after being exposed to radiation at Chernobyl. (The senior Klitschko survived but still has related health problems.) The recent nuclear crisis in Japan reminded Wladimir of the Chernobyl tragedy a quarter-century ago. “This is a problem all over the world,” said Wladimir, who speaks Ukrainian, Russian, German and English. “These nuclear plants are more dangerous than people realize.” Unlike many star athletes, the Klitschko brothers are deeply involved in social and political issues. Vitali has twice run for mayor of Kyiv (losing both times) and has pushed for democratic reforms in Ukraine. Both brothers also do charity work for UNESCO and the Laureus Sports for Good Foundation. “We’ve been very fortunate and we want to give something back,” said Wladimir, who is dating actress Hayden Panettiere from the TV series “Heroes.” “We have an obligation because we’re in the public eye.”
Both will be in the spotlight when they defend their titles later this year, Wladimir against WBA champion David Haye on July 2 in Hamburg, Vitali against Tomasz Adamek on Sept. 10 in Wroclaw, Poland. When one brother fights, the other is always there to lend support. “From a psychological view, the opponent is fighting both of us,” Wladimir said. “When he looks in the corner, he sees two faces and four eyes.” Though they won’t fight each other, the brothers are fierce competitors in other activities, including chess. “No matter what we’re doing, we both want to win,” Wladimir said. “It can get very intense when we are competing.” The Klitschkos have a combined record of 97 wins and five losses and hold all but one of the major heavyweight titles. Still, they haven’t received universal acclaim. Some boxing observers say they have dominated a weak era in the heavyweight ranks, one that lacks great rivalries like AliFrazier. “A fan came up to me in Montenegro and said, ‘Listen Wladimir, there is a recession in the heavyweight division and it’s called the Klitschko brothers,’ “ he said. “I agree with him, and I hope the recession lasts a long time.”
Ukrainian heavyweight boxing champions Wladimir Klitschko (C) celebrates with his brother, Vitali Klitschko (R), after defeating American Eddie Chambers after their heavyweight world championship boxing fight on March 20, 2010 in Duesseldorf, Germany. (AFP)
18 Photo Story American pop star Rihanna
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May 20, 2011
Rihanna, Milla Jovovich bring star power to Donetsk Shakhtar’s 75th birthday bash
Æ
– “Happy birthday, dear Shakhtar,” sang Ukrainianborn Hollywood actress Milla Jovovich from the center of Donetsk football stadium on May 14 impersonating Marilyn Monroe during her famous performance. She even fashioned a similar crystalstudded dress, which Monroe wore when she sang for then U.S. President John F. Kennedy. But Jovovich didn’t sing it for Ukraine’s chief of state even though he was in the audience for the celebration of one of Ukraine’s most successful football clubs, Shakhtar. Along with other high-profile performers, she performed for Rinat Akhmetov, Ukraine’s richest billionaire and football’s club owner. American celebrity Rihanna rendered her famous “Rude Boy” and “What’s my Name?” in bondage gear setting the audience on fire. Sporting the black catsuit and fiery red hair, she matched the football team’s colors of orange and black. Spectacular fireworks and 3D video projections enthralled the crowds. The team, who reached the Champions League quarter-finals this year, had their 51,000-capacity stadium filled to capacity. The show was broadcast on big plasma screens in Kyiv, Luhansk, Kirovohrad and Mykolayiv. For some, this party looked like a dress rehearsal before Donetsk hosts Euro 2012 Football Championship. For others, it was a worthy celebration to honor one of Ukraine’s football veteran teams. And there were some who thought that the money spent on the show could have been put to better use: renovating many of Donetsk obsolete mines and ailing ecology. Story by Yuliya Popova Photos by AP
Gigantic dummies of footballers impress the revelers.
Ukrainian-born Hollywood actress Milla Jovovich
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Paparazzi 19
May 20, 2011
Kamyanets-Podilskiy tells history of Ukraine’s many invaders, occupiers BY J O H N PA N C A K E SPECIAL TO THE WASHINGTON POST
KAMYANETS-PODILSKIY, Ukraine – Looking across the gaping stone canyon at the ancient walled city of Kamyanets-Podilskiy in southwestern Ukraine, you can imagine what it must have felt like to ride up to this place at the head of an invading horde. It would have been a sinking feeling, as deep as the gorge in front of you. The old city is almost entirely enclosed by the canyon created by a loop of the Smotrych River. To get to the town, you would have to lead your men straight down a rock face more than 100 feet high, then across the river, which would have been flooded, thanks to some ingenious dams. If you managed to get to the far bank, you would have to scramble up another cliff. Even without the people inside shooting at you, your horde would be pretty grumpy when you got to the top. Oh, and then you’d be facing the city walls. (“One of you knuckleheads did remember to bring the ladder, didn’t you?�) The other option would be to advance across the narrow isthmus
Getting There Kamyanets-Podilskiy is about 300 miles southwest of Kyiv, Ukraine. Overnight train is $30-$45 one way, or you can hire a car and driver.
Where To Stay Hotel 7 Days, www.7dney.com 4 Soborna St. 038-496-90-69 Hotel Hetman, www.hetman-hotel. com.ua/en, 8 Polskyi Rynok 067-588-22-15
What To Do The Old Fortress (tickets $1.50) and the New Fortress (free) are the highlights, but don’t miss St. Peter and Paul Church, with its minaret and a beautiful marble sculpture by Viktor Brodsky. You might also trek down into the gorge to the wooden Church of the Exaltation of the Cross. Guided tours of the city are $15-20 for a small group. www.kam-pod.info
at the mouth of the loop. But that was defended by a massive stone behemoth that looked like something out of a very dark legend – all turrets, gun ports and towers. The walls are still there today, but now this enchanting city welcomes tourists. And if you want to get inside the ancient fortress, all you need is a ticket that costs less than $2. Nobody knows when people first used this natural citadel to hold enemies at bay, but it was certainly occupied by the 11th century. Mongols overran the city in about 1240. After that, the defenses were stiffened. The older of the two fortresses that guard the main approach to the town began to take shape in the 14th century. Its walls are 45 feet high and almost 15 feet thick. In 1621, a second fortress of massive earthen walls was built in front of the Old Fortress. Over the years, the fortifications have repelled more than 50 assaults and sieges. According to legend, when the Turkish Sultan Osman arrived at the city in 1621, he asked who had created such a forbidding stronghold. “It was created by Allah himself,� came the answer. “Well then, let Allah storm it,� the sultan responded, before withdrawing. The fortress has rarely been taken by direct attack. In 1393, a Lithuanian prince conquered the city thanks to dissension in the ranks of the defenders. And in 1672, a Turkish army outnumbered the garrison by a ratio of 60 to 1. After the city fell, Mehmed IV supposedly trampled looted icons as he rode into town. You can clamber over the remains of the New Fortress without a ticket. Inside the Old Fortress, you’ll get an idea of what life was like for the soldiers, see the hole where debtors were flung if they couldn’t pay their bills, and examine the well in one of the castle towers from which soldiers hauled up water using a device that looks like a giant hamster wheel. It may come as something of a surprise that such a massive and wellpreserved bastion stands in Ukraine. But if Mesopotamia is the cradle of civilization, the lands of present-day Ukraine are probably the cradle of
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A reenactment of a medieval battle in Kamyanets-Podilskiy on Sept. 25. (UNIAN)
conquest. Much of the land is rich and flat, perfect for farming and war. Scythian, Mongol, Tartar, Cossack, Russian, Polish, Turkish, Lithuanian, Austrian, Hungarian, Swedish, English, Greek and German armies have all come this way. Which is why people in Ukraine have spent a lot of time building walls. The country holds more than 300 citadels and castles. They range from walled monasteries along the Dnieper River to Genoese towers on the Black Sea, built to guard trading outposts. Kamyanets-Podilskiy is one of the most impressive. The old part of the city – in the oxbow of the river – is not much more than half a mile long and is full of old buildings and historic churches. We hired an Englishspeaking guide for a 2 1/2-hour walking tour for about $20. Wandering the cobbled streets, you can see the Windy Gate (remembered as the place where a breeze had the audacity to pluck off Peter the Great’s hat in 1711) and the partially recon-
structed Polish Gate, which guards a ford in the river. There’s the old city hall, which now houses three small museums, and the ruins of a 15thcentury Armenian church. The facade of the Cathedral of Sts. Peter and Paul cradles a 17th-century minaret built when the Turks ruled the city. When the Poles got the town back by treaty in 1699, they decided not to knock it down, but topped it with an 11-foot golden statue of the Virgin Mary. Signs in Ukrainian and English point the way to the main attractions. Several hotels have opened in the old city and several more are in the new city within easy walking distance. We stayed in one across the river, a 10-minute walk from the historic district. The old city suffered heavy damage during World War II. Many of the drab postwar buildings have recently been replaced with modern buildings that look as if they could have been built centuries ago. Locals, such as Ukrainian castle expert Iryna Pustynnikova, find this quite disappointing, because draw-
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ings of what the old city looked like could have guided authentic restorations. Local authorities opted for plans more likely to attract investors. I didn’t find the new stuff offensively Disneyish, but more discerning people might. For centuries, the city had a remarkably diverse population – Poles, Ukrainians, Russians, Jews, Armenians. But with Soviet rule came many deportations. And the Nazi occupation during WWII was followed by terrible massacres. More than 23,000 Jews were killed near the city in three days in August 1941. That incident is not prominently mentioned in tours of the city, but it is the one that came back to me as I wandered the ancient fortifications. Today, we see such ramparts as quaint architectural marvels, almost like something from a fairy tale. But people built them out of fear - because conquerors exact a terrible price. Pancake is a former editor at The Washington Post. Copyright Washington Post. Reprinted with permission.
20 Paparazzi
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May 20, 2011
Martin Raiser from the World Bank
‘Are you lonesome tonight?’
Denis Torhov (L) and Anna Derevyanko, head of the European Business Association
Æ
The European Business Association Talent Party is a chance to prove that people successful in business have other gifts. Dedicated to Elvis Presley, the show took place in the Sullivan Room Club on May 13. It turned out that Alexei Kredisov of Ernst & Young plays a sopilka, Greg Krasnov of Platinum Bank – a guitar and so does Ljubomir Mudric from Astapov Lawyers. Unforgettable moments of true retro-atmosphere reminding of the 1950-60s were inspired by the Great Elvis hits, twist and boogie-woogie and inimitable saxophone melodies. The finishing touch of the memorable rock'n'roll night was an improvised performance of all the singers on one stage. (Photos by Alex Furman)
Max Alier, head of the International Monetary Fund in Ukraine (L) and Alexei Kredisov from Ernst & Young Ukraine.
European Business Association members and guests enjoy snacks before the party.
Nicholas Tymoshchuk from TNK-BP.
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Lifestyle 21
May 20, 2011
What’s in tattoo design? Plenty, if you know signs Æ14 an eight-point star, I will make of corrupt policemen,â€? explained sure to talk them out of it and for sure Putilin. will not draw it. Otherwise, if this per“You can even sneak in professional son later gets imprisoned, such a tattoo equipment and ink. I’ve done that will be asking for trouble,â€? Putilin said. myself a few times. All of them are Putilin has his forearm, half of his forbidden as even a guitar string can back and his side covered with two be a used as a weapon,â€? Putilin said. large tattoos, both of which As remuneration, policemen he got while in prison. accept money and different A complicated scene craftwork. “There are with swords, lions, many things made in and a torn pirate flag the prison [by convicts], symbolize his nonlike knives or backgamconformist life philosomon sets, which serve phy. His second tattoo as money. You won’t of a ship stands for find it anywhere else. “nomadic criminals,â€? People in prisons can or those who don’t really create,â€? Putilin tie up to any specific said. location. Yuriy Yaremchuk of To draw tattoos, A tattoo sketch by warden the State Department Danzig Baldayev prisoners use whatof Corrections said they ever they can lay their don’t have the current hands on, be it ink made out of a burnt update on the state of criminal tattoos shoe heel or professional equipment. in Ukrainian prisons as they are “losAcquiring the materials isn’t easy but ing their significanceâ€? and that’s why still possible. no analysis or monitoring is done. At “When I was there, the most hi-tech the same time, if prisoners are caught device was a handmade tool of a sharp- drawing tattoos, “disciplinary means ened guitar string attached to a motor will apply,â€? which vary from a reprifrom a tape recorder,â€? said Putilin. “For mand to being placed in a punishment zhzhenka (ink), you take the heel of cell. a boot, burn it down till it becomes Despite changing prison culture, powder and mix it with water.â€? criminal tattoos are well-preserved in All of those materials, though pro- the world of history and books. One of hibited, prisoners get “with the help the most significant works in this area
Viktor Putilin
was created by Russian ethnographer Danzig Baldayev, who served as a warden at an infamous prison Kresty in St. Petersburg from 1941. Over 40 years there, Baldayev made thousands of sketches of different tattoos, explaining their meaning. The sketches may have been lost forever if not for two English men, Damon Murray and Stephen Sorrell. They found out about Baldayev’s drawings and
Tattoos of an eight-point star and a shoulder strap (above) are marks of the highest criminal rank. (www.russiancriminaltattoo.ru) A body image of death signifies its inevitability. (www.bigpicture.ru)
bought the sketches off his widow. They then published the Russian Criminal Tattoo Encyclopedia, a compendium of a craft that artists like
Putilin are keeping alive. Kyiv Post staff writer Nataliya Horban can be reached at horban@ kyivpost.com
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Job announcement The Swiss-Ukrainian Mother and Child Health Program implemented by the Swiss Tropical and Public Health Institute and financed by the Swiss Agency for Development and Cooperation (SDC) is looking for candidate for the position of
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One of Ukraine's top news sources, has an ongoing student internship program. We have openings for students who are:
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