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vol. 16, issue 17/18

Chornobyl’s Tragic Legacy

A Ukrainian woman on April 26 clutches the portrait of a relative at a monument in Kyiv to workers who died following the clean-up of the Chornobyl nuclear accident. (Alex Furman)

Physical toll of 1986 accident grows as uncertainties weigh on psychological wellbeing BY Y U L I YA R A S K E V I C H an d OL E S I A O L E S H KO RASKEVICH@KYIVPOST.COM, OLESHKO@KYIVPOST.COM

If anyone can understand what the workers at Japan’s stricken Fukushima nuclear power plant are going through right now and what they may face in

Inside:

the years to come, it’s Yuriy Andreyev. He was an engineer at the Chornobyl power plants when it exploded on April 26, 1986, and now heads an organization that supports the liquidators who cleaned up after what remains the world’s worst nuclear accident. “I saw people whose skin was coming off and their mucous membranes Æ14

News Æ 2, 12 – 14 Opinion Æ 4, 5, 14

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INSIDE: • Debate over secret tapes looms large in Kuchma case. Page 2 • Have residential prices bottomed out? See stories in real estate Business Focus. Pages 8-11 • Fresh round of protests to start on May 14. Page 12

Tymoshenko sues RosUkrEnergo, Firtash over gas worth billions K Y I V PO ST STA FF

Under pressure at home from three criminal probes, former Prime Minister Yulia Tymoshenko took her battle with President Viktor Yanukovych to a U.S. court, suing a billionaire with close ties to her political rival for alleged racketeering that defrauded Ukrainians of billions of dollars in natural gas. In court documents filed in April, Tymoshenko accuses Dmytro Firtash, a gas trader and chemicals magnate close to Yanukovych, of manipulating an international arbitration court ruling to defraud Ukrainians of strategic gas reserves. Firtash has denied all wrongdoing. The lawsuit also accuses the Ukrainian government of colluding with Swiss-registered gas trader RosUkrEnergo, which Firtash coowns with Russian energy giant Gazprom, to obtain the gas. It effectively alleges that leading government officials are acting in the interests of Firtash rather than the nation’s 46 million citizens. The sensational claims stem from a deal that Tymoshenko reached as prime minister with her Russian counterpart, Vladimir Putin, in January 2009. Besides removing Firtash’s RosUkrEnergo from the lucrative bilateral gas trade, the deal allowed Ukrainian state gas company Naftogaz to seize 11 billion cubic meters of gas from RosUkrEnergo. In the transaction, Naftogaz assumed RosUkrEnergo’s $1.7 billion debt to Gazprom Æ12

Ivaniushchenko works to clean up reputation BY V LA D LAV R OV LAVROV@KYIVPOST.COM

Yuriy Ivaniushchenko, a publicity-shy lawmaker from the pro-presidential Party of Regions, is following the lead of billionaire Rinat Akhmetov and others by using lawyers and litigation to protect his reputation. After repeated claims in Ukrainian

Business Æ 6 – 11

Employment/Real Estate/ Lifestyle Æ 15 – 21, 24 Classifieds Æ 22, 23

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April 29, 2011

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media that he had a dodgy and even criminal past, his lawyers called a press conference on April 28 to announce they had filed two lawsuits for defamation against unnamed publications. The lawsuits ask the court to recognize that the information is false, to order a retraction and the removal of the offending information from the Æ2 websites.

APRIL 29, 2011 Vol. 16, Issue 17/18 Copyright © 2011 by Kyiv Post The material published in the Kyiv Post may not be reproduced without the written consent of the publisher. All material in the Kyiv Post is protected by Ukrainian and international laws. The views expressed in the Kyiv Post are not necessarily the views of the publisher nor does the publisher carry any responsibility for those views. Газета “Kyiv Post” видається ТОВ “ПаблікМедіа”. Щотижневий наклад 25,000 прим. Ціна за домовленістю. Матерiали, надрукованi в газетi “Kyiv Post” є власнiстю видавництва, захищенi мiжнародним та українським законодавством i не можуть бути вiдтворенi у будь(якiй формi без письмового дозволу Видавця. Думки, висловленi у дописах не завжди збiгаються з поглядами видавця, який не бере на себе вiдповiдальнiсть за наслiдки публiкацiй. Засновник ТОВ “Паблік-Медіа” Головний редактор Брайан Боннер Адреса видавця та засновника співпадають: Україна, м. Київ, 01034, вул. Прорізна, 22Б Реєстрацiйне свiдоцтво Кв № 15261(3833ПР від 19.06.09. Передплатний індекс ДП Преса 40528 Надруковано ТОВ «Новий друк», 02660, Київ, вулиця Магнітогорська, 1, тел.: 559-9147 Замовлення № 11-4281 Аудиторське обслуговування ТОВ АФ “ОЛГА Аудит” З приводу розміщення реклами звертайтесь: +380 44 234-65-03. Відповідальність за зміст реклами несе замовник. Mailing address: Kyiv Post, Prorizna Street 22B, Kyiv, Ukraine, 01034 Advertising tel. +380 44 234-65-03 fax +380 44 234-63-30 advertising@kyivpost.com Editorial staff tel. +380 44 234-65-00 fax +380 44 234-30-62 news@kyivpost.com Subscriptions Nataliia Protasova tel. +380 44 234-64-09 fax +380 44 234-63-30 subscribe@kyivpost.com Distribution Serhiy Kuprin tel. +380 44 234-64-09 fax +380 44 234-63-30 distribution@kyivpost.com Marketing Iuliia Panchuk tel. +380 44 234-30-40 fax +380 44 234-63-30 marketing@kyivpost.com

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2 News

April 29, 2011

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Так вигладає нова книжка Анни Герман.

Стиль жизни: Герман написала про “бездарну акторку” Юлію та командирів Майдану Світлана Тучинська Незмінний спікер президента Віктора Януковича Анна Герман 28 квітня презентувала свою першу книгу “Червона Атлантида”. Kyiv Post отримав копію книжки ще до презентації та ознайомився із творами чиновниці. В книзі Герман пише про бездарну провінційну актрису Юлію, відморожені на

Майдані нирки та загибель дітей. У книзі 5 творів – роман “Піраміди невидимі”, повість “Червона Атлантида”, а також три “фрески” – оповідання. Загалом книга справляє досить пристойне враження, та якби не гучне ім’я Герман на обкладинці, походила б на гарно виписані перші проби пера молодого автора...

Former Ukrainian President Leonid Kuchma arrives at the general prosecutor’s office in Kyiv for questioning on March 28. Kuchma was charged on March 24 over the killing of a journalist, Georgy Gongadze, in 2000, Ukraine’s most notorious post-Soviet crime. (Joseph Sywenkyj)

Debate over secret tapes looms large over Kuchma case B Y PE TE R B Y R N E BYRNE@KYIVPOST.COM

Политика: Як хочуть змінити доступ до публічної інформації Юрій Онишків Закон “Про доступ до публічної інформації” ще не вступив у силу, а в парламенті вже підготували до нього зміни, які можуть вихолостити його суть. За командою Спікера Верховної Ради Володимира Литвина апарат парламенту підготував зміни до цього закону, який має набути чинності вже 9 травня. Закон “Про доступ до публічної інформації”, який довгий час не могли ухвалити в парламенті, надає будь-якому громадянину можливість дізнатися, як витрачаються бюджетні гроші, скільки заробляє дружина народного депутата, чи безперешкодно відвідати засідання органу місцевого самоврядування. У проекті пропонованих змін потреба таких нововведень обґрунтовується неточностями та необхідністю усунення різночитання. Натомість директор Інституту масової інформації Вікторія Сюмар вважає, що наявність проекту змін до закону свідчить про те, що влада насторожено ставиться до будь-яких нових спроб зробити її відкритішою для суспільства... Украина: Freedom House: За Януковича Україна може скотитись до авторитаризму Юрій Онишків Американська неурядова організація Freedom House стверджує, що за перший рік президентства Віктора Януковича Україна стала менш демократичною та продовжує рухатись до авторитаризму. Про це йдеться у звіті орга- Віктор Янукович на інаугурації. нізації щодо стану демократії та дотримання прав людини в Україні, який було оприлюднено на її сайті 27 квітня. “За президента Януковича Україна стала менш демократичною і, якщо теперішні тенденції не зупинити, то країна може скотитись до авторитаризму і клептократії”, - сказано у звіті. Там також сказано, що Адміністрація Януковича надає значення власній позиції в середині країни, міжнародній репутації і продовжує реагувати на зовнішній тиск. Таким чином, зберігається можливість стримувати антидемократичні тенденції... Полный текст статей и блогов можно прочитать на www.kyivpost.uа

Historians, politicians, lawyers, journalists and crisis-control managers are again scrambling to accurately transcribe and understand what former President Leonid Kuchma allegedly said more than 10 years ago, resuscitating up to 1,000 hours of digital recordings. The collection, which has been used by scholars as “a unique data source” to examine how Kuchma ran the country in 2000, have been dubbed the “The Crown Jewels” for those who believe the recordings and say it provides a unique window into how top officials used graft under Kuchma in running the nation. The allegedly authenticated “core” of the prosecutor’s criminal case against Kuchma are the bits about former journalist Georgiy Gongadze, according to First Deputy Prosecutor General Renat Kuzmin, who is also overseeing the state’s case against the alleged murderer ex-police general Oleksiy Pukach. To date, only a handful of people, including Mykola Melnychenko, the former presidential guard who claims he made them, have actually listened to the entire archive, much less understood or accurately transcribed what was actually said, according to

lawyers for Kuchma, who deny their authenticity altogether.

The ‘core’ Melnychenko claims he used “various digital devices” from 1998-2000 to record up about 1,000 hours of conversations in Kuchma’s office, but only a small portion of the collection, about 60 hours, has been made available to the public. The lion’s share of recordings, about 45 hours worth, was first made available by the Vienna-based International Press Institute in early 2001. Some 200 hours worth of recordings from a second 500-hour batch were published on the Internet a year later by a project (5element. net) funded by Russian exile Boris Berezovsky. Melnychenko himself has only released several hours of unflattering audio files since fleeing Ukraine to the Czech Republic in 2000. The so-called cassette scandal, also known as “Gongadzegate,” is based on less than two dozen minutes-long excerpted audio files purportedly “authenticated” by an international panel of forensic linguists in late 2010, at the request the General Prosecutor’s Office. According to Kuzmin, the snippets prove Kuchma abused his office leading to Gongadze’s death. Other recordings, many of them lengthier and more audible, could be Æ13

Yanukovych friend goes on offensive Æ1

The purpose of such defamation, they said, was “preventing Ivaniushchenko’s active part in setting up clear rules of play on several markets that are critical for the country.” In a recent interview, Ivaniushchenko claimed to be a long-time acquaintance of President Viktor Yanukovych and Agrarian Minister Mykola Prysyazhnyuk. Ivaniushchenko is a native of Yenakiyeve, Yanukovych’s hometown in Donetsk Oblast. Diplomats in Kyiv, grain traders and media reports have also linked him to Khlib Investbud, a previously obscure grain-trading company that won a large share of grain-export quotas from government. Many agriculture market participants said the government heavily favored the trader by handing out a large allocation of export quotas to this company. In addition, Ukraine’s government selected Khlib Investbud as the single agent supplying grain to the national grain reserve. On April 28, Ukraine’s Prime Minister

Mykola Azarov promised to find out whether Ivaniushchenko has any connections to the company. Earlier he and Prysyazhnyuk denied knowing who the private majority owners of the company were. Ivaniushchenko recently broke his silence surrounding his alleged involvement with Khlib Investbud. Responding to Kyiv Post interview questions, he said it was not “his” company, but he expressed support for the work it’s doing in Ukraine. “Despite numerous speculation, Khlib Investbud is, first and foremost, a state company with a mission that’s perfectly clear to me – trying to establish clear rules of play on the market,” Ivaniushchenko told the Kyiv Post. But Ivaniushchenko’s lawyers didn’t want to talk about his businesses. His adviser Mykhaylo Podolyak said his legal team is prepared to go all the way to European courts to “clean up” their client’s reputation and ban certain “cliches” about Ivaniushchenko from being mentioned in the press.

The main “cliches” circulated by media that worry Ivaniushchenko and his lawyers are reports published by a handful of websites that link him to an organized crime group allegedly involved in the assassination of Akhat Bragin, a close associate of Ukraine’s richest man Rinat Akhmetov. In 1995, Bragin, president of the Shakhtar Donetsk soccer team, died when a bomb exploded at the stadium. Akhmetov eventually took over the soccer club and created a holding company for the industrial empire that belongs to him. The lawyers also say they will challenge reports that link Ivaniushchenko to the 2005 assassination of Anatoly Bandura, head of Mariupol-based Azov Shipping Company. A portion of a statement by the prosecutor general, distributed at the press conference, said “Ivaniushchenko had no relation to these events.” The statement added that prosecutors in Kyiv and Donetsk oblasts have been instructed to check Ivaniushchenko’s appeal about the deliberately untruth-

ful statements alleging crimes disseminated by several Internet publications. Statements from the Security Service of Ukraine and Interior Ministry were circulated refuting any involvement by Ivaniushchenko in criminal activities. “Everything that is going on around this person is a strong psychological shock to him, as he is used to other patterns of behavior,” said Podolyak. “It has become a full-scale campaign against him.” But despite numerous references to protecting Ivaniushchenko’s international business reputation, no details were given about his business interests at the press conference, apart from that currently he is on a business trip to the United States. Earlier, Ukrainska Pravda reported that the parliamentarian hired a U.S. law firm to help with his visa application. Ivaniushchenko is not the first Ukrainian to use lawyers to guard his reputation. Akhmetov’s international legal team also has a good track record of obtaining

retractions, public apologies or libel settlements from Ukrainian and foreign media. Strangely, one of the arguments used by Ivaniushchenko’s legal team to emphasize their client’s impeccable reputation is the fact that his name is not mentioned in “Donetsk Mafia,” a controversial book by Borys Penchuk and Serhiy Kuzin about criminal gangs in Donetsk Oblast. Published in 2006, the book contains numerous controversial statements about the prominent members of the Party of Regions, including Akhmetov and Deputy Prime Minister Borys Kolesnikov. Yet this didn’t prevent Ivaniushchenko’s lawyers to call the book a “fundamental work” filled with “real-life details.” Podolyak, however, was quick to point out that he didn’t believe that all the information and allegations the book contains were necessarily true. Akhmetov and Kolesnikov have denied claims of wrongdoing that are made in the book. Kyiv Post Staff Writer Vlad Lavrov can be reached at lavrov@kyivpost.com.

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April 29, 2011

4 Opinion

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April 29, 2011

Editorials

Own medicine There is perhaps nothing as bitter as the taste of one’s own medicine. Dmytro Firtash, the billionaire with close ties to President Viktor Yanukovych, is dismissive of the claims made by former Prime Minister Yulia Tymoshenko in her lawsuit filed this month in the U.S. District Court in Manhattan. She alleges that Firtash and others close to the president engaged in racketeering to defraud Ukrainian citizens of billions of dollars in natural gas that rightfully belongs to them. Firtash has experience using foreign courts to litigate over events that took place in Ukraine. Earlier this year, he accused the Kyiv Post of libel for an article that described Tymoshenko’s accusations, which now form the basis of her lawsuit. The judge dismissed the case because of a lack of a strong link to English jurisdiction. Denying the right to appeal, the judge was quoted as saying that “there are no sufficient grounds.” Tymoshenko essentially alleges that the government is run as a racket for huge financial benefit to Firtash and his associates in power, including presidential chief of staff Serhiy Lyovochkin and Security Service of Ukraine head Valeriy Khoroshkovsky. The government and Firtash refute these claims. The case may be designed to garner international attention or as a way for Tymoshenko to fight back after criminal cases were lodged against her at home. Yanukovych’s team, of course, is quite used to employing U.S. firms to blacken other people’s names, whether fairly or not. Last year, high-profile U.S. lawyers and detectives produced a report on alleged corruption in the Tymoshenko government at a cost of $2 million to the Ukrainian taxpayer. Whether Tymoshenko’s case has any merit is a question for the court in New York to decide – not Tymoshenko, Firtash, Yanukovych, public relations spin doctors or Ukrainian courts, whose fairness and independence are frequently questioned. That’s the great thing about U.S. and U.K. courts, as Firtash knows. Independent judges decide who is right and wrong, regardless of affiliation, power or wealth of those involved. But until then, Firtash will have to suffer the pressure that a pending lawsuit – frivolous or not – brings with it.

Alarm bells U.S. democracy watchdog Freedom House has sounded the alarm on Ukraine – again. The first came in January when it downgraded Ukraine from “free” to “partly free” in its annual freedom index, making Ukraine one of two countries that strayed from democracy in 2010. Now, in an April 27 report, Freedom House is warning that Ukraine after one year under President Viktor Yanukovych is heading toward authoritarianism. The 28-page report noted that Yanukovych has too much power, strengthening his grip at the expense of the nation’s other governing institutions, including parliament and the courts. The judiciary, which another watchdog, Transparency International, calls the most corrupt in the world, is now nothing more than an executive branch lapdog. Essentially, anything perceived as obstacles to the ruling elite’s agenda or challenging to their power and interests, has been removed, silenced or marginalized. This is accomplished in various ways: a rigged electoral process, a rubber-stamp parliament, prosecution of former government officials and harassment of media and civil society organizations who dare to criticize. These undemocratic steps are a big detour from democratic gains Ukraine made in the years following the 2004 Orange Revolution. And in the view of Freedom House, the developments outweigh progress Yanukovych has made in streamlining government, improving relations with the European Union and the United States and enacting anti-corruption legislation. The remedy urged is for the EU and U.S. to abandon their narrow agendas and deeply engage Ukraine, using all possible ways to nudge the Yanukovych government back into the democratic direction. Despite its faults, this administration does care what the West thinks. The dangers are clear. If Ukraine becomes less transparent, more corrupt and ultimately an authoritarian state where public assets and resources are plundered, its citizens, investors and neighbors will suffer. Ukraine will no longer serve as a rare beacon of democracy on post Soviet turf demonstrating a wiser and more prosperous path to people in the region than Putinism. Much, of course, depends upon Ukrainian citizens and investors. They must hold their politicians accountable while protecting their rights and, in doing so, seize control of their own fortunes and futures.

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“Lousy goats, all those politicians! No offense, mate!”

NEWS ITEM: Belarussian President Alexander Lukashenko insulted Ukrainian President Viktor Yanukovych and European Commission President José Manuel Barroso in an emotional speech on April 26. He said Ukraine’s top leaders are “lousy” because they did not invite him to a series of international events to do with the 25th anniversary of the Chornobyl nuclear accident. He also called Barroso “a goat,” seemingly reacting to the European diplomat’s words that he was only coming to Kyiv if Lukashenko is not there. Ukraine’s Foreign Ministry reacted swiftly and angrily, saying Lukashenko’s words are “unprecedented,” “inappropriate,” and “disgraceful.”

“Money for Chornobyl? Haven’t got much. Bought a new home.”

NEWS ITEM: While Ukraine’s leaders are trying to raise more than $1 billion for a new shelter to contain radiation at the closed Chornobyl nuclear plant’s fourth reactor, news broke that Ukraine’s richest man and close ally of the president, Rinat Akhmetov, was the owner of one the most expensive properties in London. Reportedly, he spent $220 million on an exclusive penthouse called One Hyde Park. There were 45 properties sold in this complex, costing the buyers an impressive $1.5 billion, according to the Financial Times. Akhmetov has reportedly pledged more than $1 million in Chornobyl assistance.

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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April 29, 2011

Culture of corruption holding back reform SE R H I Y LYOVO C H K I N

Only those societies whose spirit is strong and whose aims are ambitious are able to make history. The latest events in the world, both economic and political, have once again showed how difficult it is to both remain competitive and ensure stability in both the economy and the nation. Remaining modern in this dynamic world is an incredibly complicated and ambitious task that every nation, every country faces. In recent years our society, its business and state apparatus have learned to live with a crisis. Officials used their offices as a source for enrichment and turned their jobs into a sort of bureaucratic business. Burdened by bribes and administrative pressure, businessmen tried to keep making a profit by running into the shadow, by optimizing taxes and minimizing investments. But at the same time, I understand that the state has not yet created proper conditions for businesses to leave the shadows and develop effectively. Society grew increasingly frustrated and lost faith in their own powers, while waiting to be given new social promises from those above them. And this vicious circle kept going from one election to another. Economic crises and disappointment with politicians resulted in a negative stereotype in society that it’s best to change nothing, just to make sure it does not get worse. As a result, it wasn’t development that became the main feature lately but saving an illusory stability, a conservative desire “to make sure it does not get worse.” This is the way the tax reform was perceived, for example. While fairly criticizing excessive tax administration, opponents of the reform also unintentionally defended the old practice of dodging taxes, the usual life in half-shadows. I understand why it happened. At some point we lost faith in our ability to achieve great results. But we must look the truth in the eyes: preserving the status quo, conserving this stability, is no longer possible. We shall either find the strength to make Ukraine a modern country, which develops dynamically, or we are facing an imminent economic bankruptcy and rapid social degradation.

We have wasted so much time on political quarreling. It is with bitter regret that I remember the years of shilly-shallying, uncertainty and stagnation. But at the same time I have a lot of hopes for the new modernization program of President Viktor Yanukovych. Overcoming the inertia, turning Ukraine back to modernization and progress and waking society from its lethargy, breaking through to the list of the countries that are changing and changing the world – this is the ambition of our program. Modern education and quality medical services for all, a developed industry, fair pensions – these are just some of the benchmarks of the changes we offer.

Æ President will not stop fight against corruption, bureaucracy To overcome the inertia, to provide for proactive development, we need to change the political system and reform the state. This means establishing the rule of law, development of parliamentarism and representative democracy, increasing the effectiveness of state management. This is why the president supported the creation of the Constitutional Assembly, which has to unite the efforts of the best academics in the nation to design a new Constitution. Openness and transparency of the authorities and effective tools for public involvement in development, approval and implementation of decisions that run the nation is a primary feature of a democratic political system. One of the most important tasks is the professionalization of the state apparatus and defeating corruption. The nation does not need a corrupt and predatory bureaucracy; it needs professional and compact state management, which provides services for the population. This is the logical aim of the administrative reform that started last year. We need fast changes in the economy. A structural reform, transition to an innovative model of development, speedy modernization of production facilities, development of entrepreneurial initiative

while simultaneously moving the economy out of the shadows is what Ukraine needs to become more competitive. The key to achieving this goal lies in liberalization, reduction of regulatory and tax pressure on the economy. We have made the first steps in this direction by shaking up the regulatory legislation and simplifying procedures for conducting business. The task for the near future is to create stimuli for businesses for investment and innovation, to liberate the Ukrainian farmers and finally give the land owners full control over it. Undoubtedly, the ever-lasting moratorium on the land market and minute cost of this strategic resource is only beneficial to a few pretend businessmen in the agricultural sector. However, neither the farmers, nor the state benefit from it. And this inevitably means change is needed. We’re striving to create a modern state, a modern Ukraine. This entails complex social and humanitarian development of society along the lines of the Millennium Development Goals set in the United Nations’ Millennium Declaration. Our agenda is to develop human capital and national culture. We hope to increase social standards and overcome poverty, build new schools and kindergartens, create a single national electronic library, preserve cultural memorials and create new projects in television and cinema. No matter how hard the times are, the state has to care for its people – and we shall do it. Naturally, any reform policy has its critics and opposition. It’s those who are comfortable living with the old rules of the game, who are used to profiting from degradation and decay, who have become accustomed to corrupt schemes and living in the shadows. Unfortunately there are many of these people. Ukrainian politicians and its state apparatus turned out to be unprepared for real changes. Today the president is facing real resistance, political pressure and attempts by bureaucrats and political opponents to sabotage the reforms. But he is not going to stop. The president has no other allies in fighting corruption, bureaucracy and social and economic decay than his people. Stepping over distrust to create our future together is our joint chance to fight the inertia of the system, return optimism to people and belief in their own powers, to create a new state that is respected and reckoned with in the world. I am sure that we can do it. Serhiy Lyovochkin is head of President Viktor Yanukovych’s administration.

How a Ukrainian schoolgirl remembers April 26, 1986 KR I S T I N D E A S Y

A quarter of a century ago, 14-year-old Natalia Churikova was frolicking on the streets of Kyiv the day after the Chornobyl disaster, unaware that every breath of fresh spring air she inhaled contained harmful radiation. The sun was out, she says, the sky was blue, “it was a perfect day.” Things were great until a phone call came later that evening that left her stepfather looking “very worried," says Churikova, who now works as a broadcaster for RFE/RL’s Ukrainian Service. Her father, she recalls, hung up the phone and looked at his daughter. “He said, ‘Look, we all need to take a shower,’’’ Churikova says. “I said: ‘Why? I want to go to bed. I’m tired. I’m too tired to go shower.’ He said, ‘Look, you do need to take a shower because there was some kind of an explosion at a nuclear plant not

far from Kyiv, and you need to take some kind of precaution.’” Churikova says that this was the “first time I heard the name of Chornobyl, and it was the first time I heard about radiation.” The deadly accident at the Chornobyl nuclear power plant on April 26, 1986, released huge amounts of dangerous radiation into the air, contaminating millions and leading to the relocation of more than 300,000 people. Thousands of children were born with birth defects or complications such as genetic cardiac disease, with scientists expecting that thousands more could still die from radiation-induced cancer.

Kremlin kept quiet The Chornobyl site is now surrounded by a 30-kilometer exclusion zone where people are forbidden to live. United Nations Secretary-General Ban Ki-moon visited the affected area on April 20 to mark the event’s upcoming anniversary, which comes in the wake of the nuclear catastrophe at Japan’s Fukushima Daiichi plant. At the Chornobyl site, U.N. chief Ban Ki-moon called for “full transparency” from governments during such disasters.

Describing his visit as an “extremely moving experience,” Ban also pushed for new international standards that would hold countries accountable for nuclear safety, calling on governments to implement better information sharing and stressing the need for “full transparency.” Transparency was not on the agenda in Sovietera Ukraine when the Chornobyl disaster struck. Information was kept to a minimum as the Soviet government in Moscow appeared more concerned with protecting its reputation than protecting its citizens. In the crucial early days after the explosion, the authorities did their utmost to cover up the immensity of the disaster. Churikova’s family knew about the incident more quickly than many Ukrainians, thanks to her father’s ties to the military. At the same time, the lack of information led to an atmosphere of intense paranoia in Kyiv, which is located just 100 kilometers south of Chornobyl. For the latest news on an event that happened so close to home, Churikova says everyone relied on foreign media – collectively referred to as “the voices” in Soviet Ukraine. One day, while listening to foreign radio Æ14

Opinion 5 VOX populili WITH NATALIYA SOLOVONYUK

What do you think about ex-Prime Minister Yulia Tymoshenko’s decision to accuse gas trader RosUkrEnergo and Ukrainian businessman Dmitry Firtash of conspiring to manipulate an arbitration court ruling that she claims robbed the country of billions of dollars in natural gas? Lyubov Pavlyuchenko, a retiree: “I think Yulia Tymoshenko is trying to help Ukraine. She is trying her best for us, for ordinary people. Young people have nowhere to work in their homeland, while oligarchs like Firtash multiply their billions at our expense.” Evdokiya Scherbak, a retiree: “Such people like Firtash don’t care about the problems in Ukraine. Oligarchs have robbed the state, selling off land that belonged to people, enriched by us. Maybe this is a political struggle. I don’t know. But the government could sell off the whole country, with insiders capitalizing on it, while us ordinary people wouldn't even know it happened.” Inna Skazkina, film director: “I think this is nothing more than another attempt by Tymoshenko to promote herself. Maybe she has not earned as much money as she wants, or has other personal goals. As for Firtash, I can only say that he makes a profit on our problems and has earned enough.” Yulia Alekseeva, translator: “I think this is just a political stunt by Tymoshenko. Our country is such a big disappointment.” Andrew Aydje, designer: “Knowing how much money Firtash has and taking into considration the people who are in power today, nothing much will come of it. Very influential people stand behind Firtash. They have the power to decide the most important of issues, such as natural gas prices.”

6 Business

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April 29, 2011

Controversial Khlib Investbud hopes to double exports, wonâ&#x20AC;&#x2122;t reveal ownership Reuters â&#x20AC;&#x201C; A mysterious newcomer to Ukraineâ&#x20AC;&#x2122;s lucrative grain market, Hlib Investbud, said on April 27 it planned to export at least 1.5 million tons of grain this season and could double that amount in 2011/2012. Hlib Investbud emerged last summer from the restructuring of Ukraineâ&#x20AC;&#x2122;s main grain company, which was fully state-owned. It is now owned 49 percent by the state and 51 percent by private investors who have never been identified. The company has moved into the lucrative export market as well as making grain purchases for a staterun intervention fund that is responsible for ensuring domestic food price stability. Last year, a severe drought threw the Black Sea grain market into turmoil. Russia banned all grain exports, and Ukraine â&#x20AC;&#x201C; previously the worldâ&#x20AC;&#x2122;s largest barley exporter and one of the top five for wheat and corn â&#x20AC;&#x201C; in October imposed export quotas. Hlib Investbud, which had not exported before the quotas, won more

than 20 percent of the total quota volume of 4.2 million tons. This prompted exporters and traders to accuse the government of favoritism for a firm that is only partly state-owned. Hlib Investbud General Director Robert Brovdi said in an interview the procedure for allocating the quotas was fair and transparent. â&#x20AC;&#x153;More that 50 companies received quotas. All who had an interest, who possessed volumes of grain, all of them received quotas,â&#x20AC;? Brovdi said. â&#x20AC;&#x153;The problem is that they (traders) assumed they would export more, similar to the amounts that they had done in previous periods,â&#x20AC;? he added.

Future exports Ukraine harvested 39 million tons of grain in 2010, and its exports are forecast at 11 million tons in the JulyJune 2010/11 season. Brovdi said Hlib Investbud could account for up to 15 percent of that volume. â&#x20AC;&#x153;We are talking about the export of 1.5 million tons of grain this season, and we want to approach 2 million,â&#x20AC;?

Ă&#x2020;On the move KOSTYANTYN OLEFIRENKO

Robert Brovdi

Brovdi said. He said a higher grain harvest this year could allow Hlib Investbud to increase exports to about 3 million tons in 2011/12 and that the company had already bought grain on a for-

which could damage the confidence of foreign investors who have already poured millions of dollars to build Ukrainian grain infrastructure. Foreign-owned exporters, traders and other interested parties have criticized Hlib Investbud for keeping its full ownership secret. Andre Kuusvek, the EBRD director in Ukraine, said in late March at an Internet conference, â&#x20AC;&#x153;We also are concerned about the lack of transparency in the structure of share-holders of the company Hlib Investbud.â&#x20AC;? Brovdi said the private owners of 51 percent would invest â&#x20AC;&#x2DC;several billion dollarsâ&#x20AC;&#x2122; in the Ukrainian agricultural sector under the current two-year investment program. But he declined to name them. â&#x20AC;&#x153;As it stands today, it is not in my competence (to reveal the names), according to a nondisclosure agreement,â&#x20AC;? he said. â&#x20AC;&#x153;This is a commercial investment project ... We are in permanent dialogue with potential investors in a bid to increase investments,â&#x20AC;? Brovdi said.

Send On the Move news to otm@kyivpost.com or contact Kateryna Panova at 234-6500. It should include a photograph of the individual who has recently been appointed to a new position, a description of their duties and responsibilities, prior experience as well as education. Note: The Kyiv Post does not charge for publishing these notices or any news material.

YURIY SOROCHYNSKIY

has joined Avellum Partners, a local law firm, as an associate. Before the appointment, Olefirenko worked as an intern at the European Investment Bank in Luxembourg. Olefirenko studied at the University of Southern Maine, Portland in the U.S. on an exchange program. He obtained his Master of Laws degree from Central European University in Budapest, Hungary in 2010. Olefirenko also holds a degree in civil and commercial law from the Odesa National Academy of Law.

ward basis for future exports. Ukraine expects the harvest this year to amount to at least 43 million tons, and analysts say exports could jump to 22-23 million in 2011/12. â&#x20AC;&#x153;We are seeking to double exports next season. Our program of forward purchases, preparation for spot deals, a wide geography of silos and a significant amount of investment money allow us to form a plan for several million tons of exports,â&#x20AC;? Brovdi said. Ukraineâ&#x20AC;&#x2122;s billion-dollar grain sector is, with steel and chemicals, one of its biggest export earners, but it remains a murky area of the economy. The cash-strapped Kyiv government, with its eye on the huge export potential, continuously seeks to tighten its control over the sector while seeking to hold down local bread prices and prevent any local unrest. Traders and the European Bank for Reconstruction and Development (EBRD) have expressed concerns about a draft law that would establish a state-run grain export monopoly,

was appointed general director of Nemiroff, a leading Ukrainian vodka producer. In his new role, Sorochynskiy is expected to enhance the companyâ&#x20AC;&#x2122;s tactical and operational management and optimize business processes. Sorochynskiy worked at Nemiroff from1996 through 2006 as legal department director. He later joined the Kyiv offices of PricewaterhouseCoopers as a senior manager within the groupâ&#x20AC;&#x2122;s tax and legal practice. His experience also includes a stint as director of Fordon Investment Management. Sorochynskiy received a Master of Business Administration degree from Heriot-Watt Universityâ&#x20AC;&#x2122;s Edinburgh Business School in the United Kingdom. He also holds a masterâ&#x20AC;&#x2122;s degree from Khmelnytsky Institute of Regional Management and Law.

VLADYSLAV RIEZNIKOV was hired as an associate by EnGarde Attorneys at Law, a Kyiv-based law firm. He will strengthen the firmâ&#x20AC;&#x2122;s litigation practice, working on resolving complex corporate disputes in Ukrainian courts. Prior to joining EnGarde, Rieznikov practiced law at the Kyiv Economic Court of Appeals and worked as a chief lawyer within Ukraineâ&#x20AC;&#x2122;s court ruling enforcement service. He also worked as chief of the legal department at state-owned nuclear power company Energoatom and as a lawyer for Kyivmiskbud-1 construction and development company. Rieznikov studied law and economics at Kyiv Bar Academy and Kyiv Taras Shevchenko University.

EVGENYA LOKTIONOVA was promoted to director of UTG (Ukrainian Trade Guild), a domestic real estate and development company. Before the appointment, Loktionova headed the groupâ&#x20AC;&#x2122;s commercial property department. Vitaliy Boiko, UTGâ&#x20AC;&#x2122;s previous director, remains managing partner at the group. Before joining UTG, Loktionova headed sales at Cosmetics Trading, a distributor. She also managed projects at a company called Investment Consulting and Technology. Loktionova graduated from Kyiv National Shevchenko University. She also studied at the Kyiv Institute of Investment Management and International Staff Academy.

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Business Sense

Editor’s Note: Business Sense is a feature in which experts explain Ukraine’s place in the world economy and provide insight into doing business in the country. To contribute, contact chief editor Brian Bonner at bonner@kyivpost.com

WITH SERGIY SERGIYENKO

Where real estate market is heading after its big crisis With the word “crisis” going well out of use, the Ukrainian real estate market is starting to pick up steam for the upswing ahead. The question that remains to be answered is: Have the lessons of the last cycle been learned? Looking back at the recent cycle of 1999 – 2009, one can hope that the first generation of development or the first part of the learning curve has been completed. Analyzing the outcome of the recent bust-boom-bust, many problems come to the surface. Most of the completed developments were low-to-average quality, and most of them were carried out by firsttime developers who generated the funds in typically commodity trading businesses. There were virtually no professional development organizations operating in either Kyiv or nationally, and most companies were operating one or two properties. Most pre-crisis projects were of overblown and unrealistic proportions, none of which materialized. For example, several international $100 millionplus investment acquisitions took place typically at overpriced levels before the economic downturn. Most prime projects were sold to international investors pre-crisis. The portfolio of the few companies which completed or planned international public offerings were mostly comprised of unrealized projects. Moreover, land speculation was the fad of the time. The ensuing downturn resulted in vast increase in vacancies in the three main commercial segments: office, retail and warehouse. It also led to low-to-moderate vacancies in the prime segment due to extremely short supply. It also led to demand for exclusively prime properties, but none trading, as oftentimes they were nearly the only source of stable income for their holders, and the sales price was at typically 50 percent of the cost and way below the mortgage debt.

#64*/&44"%7*4&3 Methods of real-estate financing in Ukraine

he world financial crisis that strongly destabilised global economies dealt a severe blow to the real estate market worldwide. But now we all can see that step by step, the construction industry is going through a transition phase towards recovery. According to State Statistics Committee, the value of construction in Ukraine in the first months 2011 rose by 6% year to year. Frozen construction sites are being reopened and investments into the real estate sector are increasing. The continued availability of real estate financing is the key to continued growth in the industry.

EVGENIA PALIY PhD Associate of Gide Loyrette Nouel Kyiv

Evgenia Paliy, associate of the Kyiv office of Gide Loyrette Nouel, will now answer more detailed questions about real estate financing in Ukraine. What general means of real estate financing are available to developers in Ukraine?

Æ Retail, ofﬁce buildings may provide best bets for investment in sector

Real estate developers may choose between traditional debt and equity financing. Equity financing usually takes place through private placement of shares or initial public offering. Regarding loan financing - Ukrainian legal entities as well as individuals may borrow funds in foreign currency from either foreign financial institutions or non-regulated companies. However such cross-border loans are subject to certain currency control restrictions and registration procedures which must be carefully adhered to.

The present-day reality is thus: • Virtually no prime product available for sale due to a continued disparity of cost and present-day valuations; • First post-crisis development projects in offices likely to continue in secondary market, with retail likely to be in prime; • Very few international developers operating and little chance for new entrants pre-2012 (a handful of entries is expected in 2012); • Little chance for international investment pre-2013 when new quality product enters the market; • Much focus on hospitality segment which was nearly non-existent precrisis but which showed strong resilience during the crisis; and • Emergence of a handful of powerful developers backed by cash rich oligarchs. The good news for most players in the market is that this time it appears the recovery will be much quicker than in the aftermath of the 1998-99 downturn. With the economy at large much stronger, the financial sector much more developed (although still licking its wounds) and the real estate market noticeably more populated, the pace of recovery is showing signs of unexpected acceleration. In particular, it is noticed in the retail segment, where consumers are growing accustomed to the modern concept of shopping experience. The government took a few meaningful steps to improving the playing field, although by and large no needed revolutionary steps were undertaken to making the market transparent and predictable.

There are different types of loans security in Ukraine and it is usually lenders who decide which kind of security to select. In general, mortgage or pledge over borrower's assets is used and mortgage is usually preferred. Mortgages are subject to certain legal requirements in Ukraine. For instance, when the building is to be mortgaged the underlying land plot must be mortgaged as well. Incomplete construction may be mortgaged in case the person can document the ownership rights to the immovable property in future. The right to lease or use real property authorizing the lessee or user to build, own and dispose of real property may be subject to mortgage. Also a mortgage agreement requires compulsory notarial certification, state registration in the State register of mortgages and State register of prohibitions on alienation. Pledge of financial instruments, tangible goods, individual receivables or pools of receivables may also be used as a security in Ukraine.

On the surface of things, looking at the opportunities ahead, one can identify prime retail and office development as areas of strategic opportunity. These segments are evidently leading the pack due to the following advantages: • Stronger resilience during economic downturns; • Stronger occupational and end user (latter in case of retail) demand; • Higher rental rates; • Low supply; • Low competition; • Quality aware occupiers in case of offices, where the market is becoming more sophisticated as a result of occupier size; • Virtually guaranteed prime yield exit, as there is always a buyer for a properly concepted, built and populated property; and • Still relatively moderate entry cost due to a limited amount of borrowed [read: speculative] funds in the market. A particularly important element to succeeding with a quality scheme is the ability to deliver quality product from the very first stages of project realization. With development funds available for the “primest of the prime” only, the developer must demonstrate the ability to secure a site in a prime location, develop the proper international grade project concept, documentation and a set of quality permits versus questionable arrangements, with all of it backed by its own portion of equity capital. Sergiy Sergiyenko is the managing partner in Ukraine for CB Richard Ellis, a global leader in real estate services.

In case you missed them, read the last six Business Sense columns by experts online at kyivpost.com April 22 with Jorge Zukoski, president of the American Chamber of Commerce in Ukraine: “Time to remove unfair barriers that stifle agricultural sector”

April 15 with Morgan Williams, director of government affairs at the Washington D.C. office of SigmaBleyzer: “Agribusiness losses mount amid damaging ‘Great Grain Robbery’”

April 8 with Dmytro Biryuk, attorney and senior associate at the Kyiv offices of law firm Schoenherr: “New law may help construction industry get back on its feet”

April 1 with Danylo Spolsky, sales associate at Kyiv-based investment bank BG Capital: “In every way, Poland ahead of Ukraine in capital markets”

April 15 with Jorge Zukoski, president of the American Chamber of Commerce in Ukraine: “Agricultural investments in peril”

March 25 with Richard Ferguson, global head of agriculture for Renaissance Capital: “Nation has lessons to learn from faraway Argentina”

What are the ways of creating security over loans in Ukraine?

Are there any special requirements for the financing of construction? In general developers are free to choose between various types of real estate financing. However, Ukrainian law mandates that Equity financing for residential construction using funds attracted from individuals and private legal entities may be carried out only through construction financing funds, real estate funds, mutual investment funds and through the issue of target bonds, which are secured by a unit of the relevant real estate. In construction financing funds (CFF) funds are submitted to CFF in trust. The trustors aim to carry out residential construction and the trustee (usually a bank) is responsible for executing the agreement with construction and insurance companies. CFF is not a legal entity. There are two types of CFF (A and B type) which differ with regard to risks borne by the developer. In CFF of A type the developer is in charge of the price formation process, must cover the risk of under-financing and is directly responsible for any claims by end-purchasers of the real estate. In CFF of B type all commercial risks are born by the trustee. Also this type of CFF requires a number of special and compulsory insurance, which makes CFF of type B less popular in practice. Real estate funds (REF) are also created in the form of trust and not in the form of a legal entity. Securities issued by these funds may be placed either publicly or privately. In practice this kind of fund face significant obstacles - two registrations of securities are required (for the right to issue certificates - with State Commission for Regulation of Financial Services Markets and the issue registration with the State Commission of Securities and Stock Market), the trustee should be registered as a financial institution etc. Mutual investment funds (MIF) - the investment funds which accumulate the investor's costs for obtaining income through investing into securities of other issuers, corporate rights and real estate. MIFs include share investment funds (SIF) and corporate investment funds (CIF). SIF is not a legal entity, it is created by the asset management company, which acts upon its own name when entering into agreements and acts as a title holder of the SIF assets. As it is not a legal entity it gains some tax exemptions, for instance it is not subject to withholding tax. On the contrary, CIF is a legal entity, created in the form of a joint stock company. Not less than 60 % of its assets should be invested into securities, corporate rights and real estate. Both SIF and CIF must be managed by a licensed asset management company. Target bonds upon real estate units are also a popular way of real estate financing. The par value of the bonds may be determined based either on square meters of built up space or on the premises as a whole (single, double room apartments etc). Tax obligations of the developer arise upon the bond's repayment. For tax optimization purposes, developers may use a complex scheme combining the creation of an SIF and the issuance of target bonds. Developers may also choose to raise funds through derivatives (options). Investors purchasing options do not receive a direct share in the assets but a right to purchase these at a predetermined price within a given timeframe. The sale of target bonds options can be also an interesting means for a developer to raise funds in the early stages of a project.

GIDE LOYRETTE NOUEL KYIV 56, Bohdana Khmelnytskoho, 01030 Kyiv - Ukraine Tel. +38 044 206 09 80 – Fax.: +38 044 206 09 81

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8 Business Focus

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April 29, 2011

Special news coverage ahead on the following topics in Business Focus: May 13 Mergers & Acquisitions

June 10 Agribusiness & Food

July 1 Law firms/Top lawyers

August 26 Education in Ukraine and adroad

July 22 Ukraine’s Energy Challenges

Residential housing prices may have bottomed out BY V L A D L AV R OV LAVROV@KYIVPOST.COM

Hit hard by the 2009 global recession, Ukraine’s residential real estate market remains among the world’s weakest performers, but there are signs of recovery in the premium segment. Ukraine scored among countries with the sharpest price decline, according to the latest Global Housing Price Index, which is published by Knight Frank, a London-based property consultancy. According to the report, residential property prices continued to fall in 2010, by about 8 percent. That’s enough to make Ukraine the third worst-performing market out of 50 European, North American, Middle Eastern and Asian markets surveyed. The only countries “outperforming” Ukraine are Lithuania, where prices dropped by about 10 percent, and Ireland, which posted a decline of almost 11 percent.

Since 2009, housing prices in Ukraine have plunged by more than 40 percent. In contrast, the Index’s best performers – Hong Kong, Latvia and Israel – each showed robust price growth of more than 15 percent. Meanwhile, in neighboring Poland, prices have during this period grown by almost 9 percent. In Russia, prices are up by almost 1 percent. But if you are selling, don’t get depressed. Experts say residential real estate prices have likely hit bottom. That means they can only go up from here. And if you’re an investor, this could be the right time to buy. Liam Bailey, head of residential research at Knight Frank, said the market may be on the verge of a new growth cycle, trailing not far behind other Eastern European markets which are still far from peak prices of 20072008. According to Knight Frank’s forecast, Ukraine’s mainstream real estate

market will remain static in 2011, while the premium segment, mainly in Kyiv, will show price growth of up to 5 percent. According to Bailey, anyone interested in investing should carefully study the lessons that are to be learned from the 2009 crisis. It’s a cyclical business. The bubble that burst in 2009 on Ukraine’s residential property market was created by a mix of inexperienced investors who tried to sweep up all they could, as well as by banks that financed the speculative frenzy. “People wanted to invest in emerging markets to get quick yields without thinking about the exit strategy, whether their title to the property is secure and the property is easy to sell. Now they will be likely to do much more due diligence,” Bailey said. Terry Pickard, who runs Kyiv-based real estate consultancy NAI Pickard, is upbeat on the way Ukraine’s real estate market is recovering. Prices in some

segments, primarily in premium retail, have already returned to pre-crisis levels, he said. As for the residential segment, the trend is similar, he added. The luxury segment, according to Pickard, has fully recovered from the 10-15 percent downfall at the peak of this crisis. It is “booming again” because cash-rich clients shopping for luxury property are not dependent on mortgages. The middle- or business-class segment, is likely to recover by the end of this year, when supply and demand reach equilibrium, Pickard added. Don’t expect Ukraine’s low-cost residential property market to start taking off any time soon, however. Pickard said activity in this sector is heavily dependent on the appetite and ability of banks to finance purchases through mortgages. Many banks got burned after the 2009 crisis when homebuyers defaulted on loans. Nonperforming loans run at double-digit

percentage levels for many banks that are still struggling with their books. Overall, up to 70 percent of residential real estate purchases were financed through mortgages. As much as one-third of these mortgage loans are overdue or are being restructured, according to expert estimates. Recovery in the economy-class residential housing segment is at least two years away, Pickard said. But Taisia Shepetko, an analyst at Kyiv-based investment bank Dragon Capital, was less optimistic about Ukraine’s residential real estate market overall. She said it could very well take banks much longer to start full-scale lending again. “In 2010, Ukrainian banks issued $290 million worth of home loans, a tiny amount compared to the $385 million in mortgage loans they granted each month in 2008,” she said. Kyiv Post Staff Writer Vlad Lavrov can be reached at lavrov@kyivpost.com.

Where real estate prices were hot and where they were not in 2010 20.1%

Hong Kong

Latvia 16.9%

Following a hike in mortgage interest rates coupled with natural disasters in Japan, secondary sales in most major housing estates – including Hong Kong – were down in March. Despite this fall, only some landlords lowered their asking prices and flats were snapped up quickly after price cuts. The primary residential market remained hot as developers speeded up the launch of new projects.

-6.1%

16.2%

Latvia’s high rate of price growth shouldn’t deceive anyone, as the market simply rebounds from a sharp price downfall, which compared to the peak levels of 2007 has reached 70 percent. Besides, the trend significantly slowed down and in October and November 2010, the price increase stopped. During the first two months of 2011, overall prices decreased by 0.7 percent.

-7.2%

Dubai, UAE Prices continued to fall in most areas in the first quarter of this year, but there are signs that prices are beginning to stabilize, especially in the higher end of the sector. Residential real estate transaction levels were higher in January and February as financing became more available. Apartments at the lower end of the market are seeing the largest decreases, falling by 8.9 percent.

Israel

China* 15.3%

Israel has been among the first countries to recover from the economic crisis and local banks are again willing to issue loans. After positive growth in 2010, the market is expected to show continued improvement for 2011. Also, financial institutions are still reluctant to invest abroad after the huge loss they suffered in Eastern Europe and will keep looking for yield properties in Israel.

Singapore 14.0%

After a year of impressive growth, in February the total area of primary residential sales transactions in most of the major mainland cities fell significantly. This was due to the impact of government regulatory policies aiming to curb investment demand. However, new-home prices remained stable and dropped only 0.1 percent from January, the first monthon-month decline since August 2010.

The private residential property market ended 2010 with new benchmark prices, on the back of healthy demand. The first half of this year is expected to remain healthy, supported by the substantial amount of liquidity floating in the market, low interest rates and ease of credit, as well as the sustained inflow of hot money expected from the West.

-7.8%

Croatia As of the end of 2010, rents had basically stopped falling and are expected to track sideways through 2011 with little hope for sharp recovery. Although economic activity contracted through 2009, it has been less than in other countries in Central and Eastern Europe. Consumer spending is likely to remain weak for some time – mainly because of persistent unemployment and under-employment.

Ukraine There was little change in the market throughout 2010. Foreign direct investment remains low. Yet, it is predicted that the worst is over and the market has settled into a stable period with the premium segment likely to be first to recover. For those investors with cash to invest, returns can be 25 percent to 35 percent or more per year with the possibility of substantial capital growth.

-10.1%

Lithuania

The economic crisis may be subsiding, but construction and real estate deals in Lithuania are still going at a very slow pace, with prices bottoming out in March 2010. Nevertheless, most frozen real estate projects are being resumed, and it is generally believed that the market will start going up this year.

-10.8%

Ireland

Despite a battering from budget cuts and the arrival of the International Monetary Fund, sales volumes for lower and midrange properties increased markedly in late 2010. This activity is also showing itself at the top end of the market as cautious buyers start to place bids on a limited stock of fine houses. Overall, the trend from purchasing to leasing continued in 2010 with little change expected in 2011.

Residential price changes between 2009 and 2010; * Based on Beijing & Shanghai; Sources: Knight Frank, Arco Real Estate, Colliers International, Cluttons, Fast Market Research, NAI Pickard

www.kyivpost.com

Business Focus 9

April 29, 2011

Top 10 Kyiv real estate gems BY K AT E RY N A PA N OVA

PANOVA@KYIVPOST.COM

Kyiv is full of beautiful buildings, many of which are up for sale. The Kyiv Post has compiled a list of the 10 most attractive commercial real estate properties which, according to experts, are available for purchase in Kyiv. Considering that Ukraine’s property market is still crawling out of a deep plunge that was triggered by the 2009 global recession, you would think that developers, property owners and agents would have rushed to publicize what’s out there for sale. But remarkably, finding these hot picks was no easy task. Real estate agents and developers seemed unwilling to reveal what’s out there, who owns it and whether it’s up for sale – let alone for how much. Nevertheless, here is the list of hot picks that the Kyiv Post came up with. Before reading on, keep in mind that prices listed can be negotiable.

Baron’s castle on Yaroslaviv Val 1 $10 million

Business center on Rylsky Provulok 6

This is one of the most beautiful architectural landmarks in downtown Kyiv. According to CB Richard Ellis, an agency selling this gothic castle-like building, it is badly in need of reconstruction, although they say the roof and basement are in “gorgeous” condition. Some potential buyers were ready to give as much as $8 million for this gem. But the owner, allegedly a member of Kyiv’s City Council, is in no hurry to sell. At least that’s the story given to the Kyiv Post by an employee at CB Richard Ellis.

Boutique on 23 Baseyna Street $1.5 million

The two-star, Soviet-era hotel on the outskirts of Kyiv along the road to Odesa is a bit gloomy looking nowadays. But its great location gives the property big upside potential. It is located a few blocks from the Ukrainian capital’s biggest exhibition center. The potential investor would have to reconstruct the eight-story building. One big plus is that reconstruction plans have already been approved by city authorities.

Five-story building on Mazepy 11 $25 million

This business center is right near Ukraine’s ancient St. Sophia Cathedral and two of the country’s top hotels: the Hyatt and InterContinental. Its seven floors, 3.5 meter ceilings and 5,714 square meters of space fits more than a dozen offices. In short, it unites ample space, great location and some of the best views in Ukraine.

$67.5 million

Given that it is only 100 square meters, this shop is expensive. But the price gets you first floor space in a prized Stalin-era building right next to Kyiv’s downtown Bessarabskiy market. Hundreds of thousands of people pass and drive by each day. That could be enough to justify the price.

Nyvki City Business Park $ ? million Encompassing 40 hectares, this business center is huge. It offers offices, warehouses, a gym and a clinic. Part of the area used to be part of the Verkon machine-building plant. Although some market experts pointed out that Nyvki city is on sale, the marketing department of the business park did not confirm it. They did, however, tell the Kyiv Post that investors willing to help develop the first stage involving 10 hectares of property are welcome.

8 The developer started constructing this office center in 2007. It has a 15-storey tower and bottle-shaped windows. It is designed for offices, restaurants and shops, but unfortunately is only 80 percent complete. The developer, a company called Investitsionno-Stroitelnaya Kompanya, seems to be short of funding needed to finish the building. So, it is looking for an investor. According to Viktor Kalugin, chairman of the company’s board, the project’s central location makes it attractive.

$6.9 million

$45 million

Topaz Office Center on 2/10 Melnikova Street

Historic building on Esplanadna 32B

Detstvo trade center on 4 Kiltseva $7 million

Trade center on Raduzhna 15 $5.2 million It isn’t pretty, it is deep in a sleeping district, and most of the building is already occupied by a Furshet supermarket. But it is the most practical purchase one can get nowadays. Insiders say 100 percent of its 4,400 square meters of commercial space is occupied. The new owner will have a guaranteed monthly cash flow.

Kiltseva, the ring-road highway encircling Kyiv, already hosts lots of home appliance stores, building materials outlets and car dealerships. Much more development is expected in coming years. Pretty soon, it will also become attractive for families. The new Detstvo mall under development could become very popular with parents and their kids.

This more than 100-year-old four-story building was reconstructed in 2002. According to Victoria Barabash, director of Park Lane real estate agency, which is selling the property, the building is designed for offices, but has a sauna and a swimming pool. The joke circulating among property market insiders is that it can easily be turned into a kindergarten, school, or health clinic.

Hotel Holosiyivskiy $13 million

Constructed in 1913, this white, classic-style building is one of a dying breed of historic buildings left in downtown Kyiv. It has five floors and is 101 meters long. It stands right next to the picturesque Park Slavy greens. It could make a perfect fit for lawmakers and politicians. Getting to the building from Ukraine’s parliament would take a few minutes by car or on foot.

10 Business Focus

www.kyivpost.com

April 29, 2011

American-style suburban developments spring up BY K AT E RY N A PA N OVA PANOVA@KYIVPOST.COM

Walking on a Saturday morning through Green Hills, a suburban residential neighborhood under development a few kilometers outside of Kyiv, you meet lots of young families with small kids. Not all of them live here. Some just invested in the construction of houses, worth at least $180,000, and are now coming every weekend to check the building progress. In contrast to some apartment buildings in Kyiv where neighbors rarely talk to each other, homeowners in this development are already starting to behave like American community dwellers. They engage in lively chat once they bump into each other. They also give each other flower pots and pies as gifts. Busy construction work breaking through the serenity of nature doesn’t seem to disturb them. On the contrary, they are happy to see the activity, which in post-crisis Ukraine symbolizes hope that this development will be one of the few ready on time. Ukraine’s real estate market still has a long way to go to reach precrisis levels. After a severe drop during the 2009 global recession, suburban development grew a bit last year, and is expected to do even better this year. Volodymyr Stepenko, marketing director at SV Development, forecasts that developers will sell 900 houses in suburban developments this year. “The market is held back as few mortgages are available for people buying houses and a lack of financing for developers. However, things are getting better. The quantity of frozen projects is decreasing,” he said. At some so-called cottage development projects, getting loans is easier. The Green Hills project is one such example. It is being developed by Dragon-Ukrainian Properties & Development, a real estate arm of Kyiv-based Dragon Capital investment bank. Through a deal with a bank, loans are available for homebuyers at 15 percent annual interest.

The Green Hills housing project is under development by Dragon-Ukrainian Properties & Development, a real estate arm of Kyiv-based Dragon Capital investment bank. (Alex Furman)

ÆSuburban bliss can come as cheaply as an $180,000 loan with 15 percent interest rate The hottest selling homes are no more than 180 square meters at a price tag of $1,000-1,200 per square meter. The price of suburban bliss, therefore, is around $180,000. Market players say supply currently exceeds demand. There are more than 55 suburban developments around Kyiv with more than 2,500 houses available for sale, said Stepenko.

Seventy more neighborhoods are on their way with 12,000 houses, and 60 more developments are in the design stage. However, market experts advise that the best projects to invest in are those that are complete or nearly complete, as it is not certain all of the planned projects will be built. Mykhailo Yermolenko, general director of real estate agency Knight Frank, recommends three developments: Green Hills, Mayetok and Solnechnaya Dolyna. At these sites, the first set of homes are already built. Prices are reasonable. Stepenko said ten other projects were relatively safe investments and reasonably priced (see the table for more details). The limited amount of completed developments is what keeps prices from falling considerably. Yermolenko says that economy and business class houses in suburban developments are becoming cheaper, down by up to 10 percent from last year. Prices in the premium segment, however, are growing, 3.5 percent up since the end of 2010. Families buying houses are picky. Ukrainians don’t seem to want townhouses and duplex homes, which are so popular with many Europeans and Americans. “More than 80 percent of customers want a separate house. It is our mentality, having a fence and being some distance from other people,” explains Dmytro Pikalov from UTG real estate group. When picking a developer, the most important thing people look for is how actively the neighborhood is being constructed. And people want good roads, a forest, a lake or river, and a piece of land around the house. They are interested in what materials the house is made

Historical real estate price changes (suburban) 40 20

31%

29%

23%

-8%

10%

12%

2011*

2012*

-20 -32%

-40 2005

2006

2007

2008

2009

2010

* Forecast Source: SV Development

Prices for single-family homes in key suburban Kyiv housing developments Price per house (an average of 170 square meters), $

Minimum price per square meter, $

Maximum price per square meter, $

Novobogdabovka

134,502

773

Mykhailivskiy Sad

180,000

726

852

Zolotche Club

257,500

1,000

Green Hills

306,000

1,195

1,516

Zolotche 2

250,000

1,000

Grand Villas

289,958

812

975

Montana Village

296,000

1,250

Severinovka

310,000

900

1,200

Zoloche 1

312,500

1,250

Solnechnaya Dolyna

620,000

1,700

2,100

Maetok

661,950

1,800

2,100

Riviera Villas

1,337,500

2,500

Alpiyskaya Derevnya

1,113,500

2,053

2,376

Suburban Development

Source: SV Development

from, preferring stone, bricks and concrete, says Stepenko. Surprisingly, families do not seem to demand schools, kindergartens, gyms or clinics. “A kindergarten, a playground or a supermarket can be of some interest. But somehow people do not care much about infrastructure, and even if they are promised it will be built in the future, they do not take it seriously knowing that few developers fulfill promises,” says Stepenko. Many families seem eager to enroll their children in schools located downtown in Kyiv, and to commute to work and back home each day. Thus, devel-

opers are seeking plots no further than 30 kilometers away from the city. Houses to the south in the direction of Obykhiv and Odesa are the most expensive. Homes on the westward road to Zhytomyr are cheaper, according to Pikalov. Even less expensive housing can be found in the Brovary and Boryspil directions. But reaching downtown from there means battling with traffic jams on the bridges. “The Vyshgorod region is becoming more and more popular because our new political elite settled there,” says Pikalov, referring to President Viktor Yanukovych’s estate in Mezhyhiriya.

www.kyivpost.com

Business Focus 11

April 29, 2011

REAL ESTATE

Listing is arranged in alphabetical order TEL./FAX

TOP EXECUTIVE (FULL NAME)

HEADQUARTERS

# OF FULL-TIME EMPLOYEES IN UKRAINE

FOREIGN LANGUAGES

FIELD OF WORK

KINDS OF REAL ESTATE

SERVICES OFFERED

MAJOR CLIENTS

NAMES/TYPES OF CLIENTS

Architecture & engineering, project management, cost & construction management

WND

Immochan, Embassy of India, Embassy of France, the European External Action Service (the European Union), Schneider Electric

ARCOM, www.arcom.com.ua, market@arcom.com.ua, 52 Pochaynynska Str., off.# 1, Kyiv 04070, Ukraine (44) 417-24-31 (44) 425-78-89

Benoit Monnet

Paris, France

French, English

Commercial/ residential

Commercial centers, diplomatic representatives, office & business centers, public & residential buildings, warehouses

Avellum Partners, (in Ukraine since 2009), www.avellum.com, info@avellum.com, Leonardo Business Center, 19-21 Bohdana Khmelnytskoho Str., 11th floor, Kyiv 01030, Ukraine (44) 220-03-35

Mykola Stetsenko

Kyiv, Ukraine

English, Russian

Commercial property, land

Legal due diligence, acquisitions structuring, negotiating of sale and purchase agreements, general legal support

WND

Major real estate developers and property investors

Baker & McKenzie â&#x20AC;&#x201C; CIS, Limited, (in Ukraine since 1992), www.bakermckenzie.com, kyiv_info@bakermckenzie.com, Renaissance Business Center, 24 Vorovskoho Str., Kyiv 01054, Ukraine (44) 590-01-01 (44) 590-01-10

Serhiy Chorny, Serhiy Piontkovsky

Chicago, USA

English, German, French, Ukrainian, Russian

Commercial

Office, hotel, retail, industrial, land, construction

Full-range of legal services related to real estate, land and construction

N/A

Multinational corporations, banks & organizations, leading Ukrainian companies

WND

Foreign investors, real estate proprietors and developers, construction companies

Shopping Centers Fabrika (Kherson) & Lubava (Cherkassy), all key business centers and warehouse complexes in Kyiv

XXI Century Investments, Auchan, Bank of Cyprus, DUPD, Heitman, ING Bank, Metro Group, Nokia Siemens Networks, Pepsico, TMM

BEITEN BURKHARDT, (in Ukraine since 2004), www.beitenburkhardt.com, bblaw-kiew@bblaw.com, 38 Turhenevska Str., Kyiv 01054, Ukraine (44) 494-04-00 (44) 494-04-01

Dr. Julian Ries, Head of office, Dr. Oleksiy Feliv, Partner, Real Estate Practice

Munich, Germany

WND

English, German, Polish

Commercial

Hotels, warehouses, offices, shopping malls, land

Legal and tax services related to real estate investments, real estate and land management, construction, real estate mortgage and lease operations

CB Richard Ellis, (in Ukraine since 2008), www.cbre.ua, ukraine@cbre.com, Horizon Park Business Center, 4 Mykoly Hrinchenka Str., Kyiv 03680, Ukraine (44) 390-00-00

Sergiy Sergiyenko, Radomyr Tsurkan

Los Angeles, USA

100

English, French, Italian, German, Spanish

Commercial property

Industrial, land, office, retail, warehouse

Agency services, property management, valuation, consulting, project management & building consultancy, capital markets

DEOL Partners, (in Ukraine since 1992), www.deol-partners.com, info@deol-partners.com, 17/52 Bohdana Khmelnytskoho St., 7th floor, Kyiv 01030, Ukraine (44) 200-77-00 (44) 200-77-01

Ruslan Oleksenko

Kyiv, Ukraine

English, German

Commercial

Hotel, serviced apartments, office, retail, industrial, land

Development, Investment Management, Research and Analytics

Senator Apartments, Kiev Airport City, Mall of Ukraine, WoodPoint, RiverSide Town

WND

Legal (real estate investment, tax, finance, restructuring, development, construction, leasing, retail, etc)

WND

Leroy Merlin; DUPD; Steltex Investments; Regus; Louis Dreyfus; General Electric; Starwood Hotels & Resorts; etc

property valuation, feasibility study, strategy development, portfolio optimization, investment management

WND

DLA Piper Ukraine, (in Ukraine since 2005), www.dlapiper.com, Ukraine@dlapiper.com, 77A Chervonoarmiyska Str., Kyiv 03150, Ukraine (44) 490-95-75 (44) 490-95-77

Natalia Kochergina, Partner and Head of Real Estate

London, UK

English

Full legal support of real estate and land transactions

WND

Ernst & Young LLC, (in Ukraine since 1991), www.ey.com/ua, kyiv@ua.ey.com, 19A Khreschatyk Str., Kyiv 01001, Ukraine Kyiv: (44) 490-30-00 (44) 490-30-30 Donetsk: (62) 340-47-70

Alexei Kredisov, Country Managing Partner, Eleonora Melnyk, Leader of Real Estate Advisory Services

London, UK

517

English

Commercial

Office, retail, industrial, land, hotel

Gide Loyrette Nouel, (in Ukraine since 2006), www.gide.com, gln.kyiv@gide.com, 56A B.Khmelnytskoho Str., Kyiv 01030, Ukraine (44) 206-09-80 (44) 206-09-81

Karl Hepp de Sevelinges

Paris, France

English, French, German.

Commercial

WND

Legal services: due diligence, construction permits, hotels, infrustructure, PPP

GLEEDS Ukraine LLC, (in Ukraine since 2005), www.gleeds.com, gleeds.ukraine@gleeds.com.pl, BC Forum, 13 Pymonenko Str., block 6A, off.# 33, Kyiv 04050, Ukraine (44) 581-01-16 (44) 581-01-17

Tadeusz Jachowicz, Svitlana Bozhko

London, UK

English, Polish

Commercial, residential

Retail, residential, office, hotel, industrial and logistic

Project and cost management, investor/ funderâ&#x20AC;&#x2122;s representative, technical due diligence, technical supervision

WND

Amcor, Argo Real Estate Opportunities Fund, EBRD, JP Morgan, Marfin Bank, PBG SA, UBS AG, Ukrsotsbank, UniCredit Bank

Residential and commercial leasing and sales, property management, market research, advisory services

WND

Canon,GSK,IMF,IKEA,Leo Burnett, Nokia,Pechersk School, USAID, World Bank, Embassies of USA,Germany,Spain,UNO

Legal services, transaction support, taxation, permit and license issues

WND

Retail: Ocean Plaza Mall, Global UA, Galactic, Mega Mall, Ukraine etc Office: PARUS, Horizon Towers, Leonardo, Eurasia, Plazma

Morgan Stanley, Praktiker, Benish, King Cross, Bougues, SCC, McDonalds, OBI Renault, Auchan Real IMAX, BILLA Marks&Spencer, Esprit

Key Realty, (in Ukraine since 1993), www.keyrealty.kiev.ua, krealty@zeos.net, 6 Malopidvalna Str., off.# 4, Kyiv 01001, Ukraine (44) 278-27-76 (44) 279-06-90

Nadezhda Moyseyenko

Kyiv, Ukraine

English

Commercial/ residential

Apartments, houses, offices

Noerr TOV, (in Ukraine since 2007), www.noerr.com, info@noerr.com, 7/11 Khreschatyk Str. , Kyiv 01001, Ukraine (44) 495-30-80

Dr. Mansur Pour Rafsendjani

Munich, Germany

English, German

Commercial

Land, buildings (brown field and green field), integrated property complexes and real estate infrastructure

Salans, international law firm, (in Ukraine since 1992), www.salans.com, kyiv@salans.com, 49/A Volodymyrska Str., Kyiv 01034, Ukraine (44) 494-47-74 (44) 494-19-91

Oleg Batyuk, Managing Partner, Kyiv

International law firm, 22 offices worldwide/1 office in Ukraine

More than 30 lawyers in Ukraine

English, French, German

Legal assistance in due diligence, commercial property development, asset management, commercial leases, dispute resolution

WND

Legal services

UTG (Ukrainian Trade Guild), (in Ukraine since 2001), www.utg.kiev.ua, is@utg.kiev.ua, 2A Mechnikova Str., 11 floor, Kyiv 01601, Ukraine (44) 537-23-64 (44) 537-23-65

Vadim Neposedov, Vitaliy Boyko

Kyiv, Ukraine

English, German

Commercial, residential

Retail, office, residential, hotel. Official consultant in Ukrainian Goverment

Research, strategic consulting, full RE-management, agency investment

Business Focus is the Kyiv Postâ&#x20AC;&#x2122;s spotlight on companies, industries and services in Ukraine. The stories on the news pages of Business Focus are written by Kyiv Post editorial staff members, but the lists of companies are paid advertisements. Listing is arranged in alphabetical order. For more information about publishing your company's information in our list, please contact the advertising department at advertising@kyivpost.com. Key to abbreviations: WND â&#x20AC;&#x201C; would not disclose.

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12 News

www.kyivpost.com

April 29, 2011

Firtash denies Tymoshenko allegations that he is part of ‘pervasive’ corruption Æ1 – effectively allowing Ukraine to purchase the gas at a preferential price. Firtash responded in 2009 by filing an arbitration claim in a Stockholm court claiming the agreement illegal. Filed in the U.S. District Court in Manhattan, Tymoshenko’s lawsuit suggests her government was confident of winning the case. But last year, after Yanukovych narrowly beat Tymoshenko in a presidential election, Firtash's allies took up key places in government. “The two parties that were facing each other in the Stockholm arbitration were now friends and allies,” the lawsuit alleges, a copy of which was obtained by the Kyiv Post and is available at www.kyivpost.com and www. kyivpost.ua. After the change in government, Naftogaz now “admitted” that the gas belonged to RosUkrEnergo. The arbitration court ordered it to return the gas and a further 1.1 billion cubic meters in penalties. RosUkrEnergo redeemed the debt of $1.7 billion to Naftogaz and $810 million to Gazprom. But the huge volume of gas it received is worth around $3 billion. Ukraine, meanwhile, was left to replenish its reserves at the full market price that it now pays to Russia. Firtash and Ukraine’s current leadership have repeatedly denied wrongdoing, as has Tymoshenko in reference to charges of improper spending against her. Firtash’s press service said on April 27 that he hadn’t received any notification from the court about the case. “Mr. Firtash stands by the recent decision of the Stockholm Arbitral Tribunal and, as such, does not believe that Ms. Tymoshenko has any grounds for challenging such decision in New York or in any other forum,” his statement reads. Tymoshenko has come under pressure over the 2009 gas deal in recent weeks, after prosecutors opened a criminal probe alleging that the deal set the price of gas too high, causing the state losses of around $200 million. Several officials involved in the gas deal and

Exclusivity Price!

Tax protest leader Oleksandr Danylyuk talks to the crowd outside parliament in Kyiv on Nov. 18. (Yaroslav Debelyi)

Billionaire Dmytro Firtash (L) and former Prime Minister Yulia Tymoshenko may continue their battle in the U.S. District Court in Manhattan. (Yaroslav Debelui, courtesy)

the transfer of the gas are currently in detention as they are investigated for alleged abuses of power. Tymoshenko’s lawsuit alleges that the Stockholm decision allowed corruption by Yanukovych associates, including Firtash, to flourish. It reads: The arbitration ruling “has been widely perceived as a means of generating huge sums of cash with which Firtash and his associates could continue to illegally fund the pervasive system of corruption that encompasses every level of government, while at the same time suppressing political dissent through intimidation, racketeering and other violations of fundamental human and political rights.” Tymoshenko brought the lawsuit in the U.S. under the Racketeer Influenced and Corrupt Organization Act and the Aliens Tort Statute, which allows U.S. courts to uphold international law. It names 100 other unidentified individuals and companies alongside Firtash and RosUkrEnergo. Representatives of both Firtash and the government have consistently denied any wrongdoing in the arbitration case. A spokeswoman for Yanukovych said he had no comment. As the Kyiv Post went to press, RosUkrEnergo had not commented on the issue.

AVAILABLE FOR RENT NOW!

The legal claim restates Tymoshenko’s longstanding allegations that Firtash wields enormous influence within the government through connections at the highest levels. Firtash described himself as a longtime friend of the president in a recent interview with a French magazine. Yanukovych’s chief of staff, Serhiy Lyovochkin, said last year that he had known Firtash for many years. Firtash had an option to buy the popular Inter television holding (UA Inter Media Group) from business mogul and secret service chief Valeriy Khoroshkovsky. Energy Minister Yuriy Boiko has in the past held a board seat on RosUkrEnergo and, according to documents which he has refused to comment on, he held power of attorney over much of Firtash’s assets. Firtash also has other, dubious connections, according to a U.S. diplomatic cable published last year by Wikileaks. Diplomats quoted the businessman as telling them that he had sought the blessing for business dealings from alleged UkrainianRussian mobster Semyon Mogilevich. Firtash denied saying this, but according to a 2006 Financial Times report, he has had business relations with Mogilevich.

Fresh round of protests to kick off on May 14 B Y K ATYA G R U SH E N KO GRUSHENKO@KYIVPOST.COM

The organizers of last autumn’s protests against controversial tax changes are planning to kick off a new round of demonstrations on May 14. Speaking with the Kyiv Post, Oleksandr Danylyuk said he and other pro-democracy and business rights activists plan to gather big crowds and could set up tents again on what they describe as “anger day.” It will be an attempt, Danylyuk said, for all Ukrainians to express their dissatisfaction with the rollback on democratic and media freedoms one year under the presidency of Viktor Yanukovych, as well as the worsening social-economic situation in the country. Danylyuk is one of the leaders of the tax protests which drew support from thousands of representatives of small- and medium-sized businesses. To demonstrate their resolve, many supporters back then spent weeks sleeping overnight in tents on Kyiv’s main square.

Back then, the main slogans were against tax reforms that, in the minds of protest supporters, unfairly placed the taxpayer burden on small businesses while cutting rates for big ones. Danylyuk said he hopes that bigger crowds will show this time around. One of the demands of protesters, according to Danylyuk, is for Yanukovych to “resign.” “We expect all who are unsatisfied with the current regime to show up, be it entrepreneurs or people who don’t like the quality of services that they receive after seeing utility rates hiked up,” said Danylyuk, leader of the Spilna Sprava social movement. “After they amended the Constitution, they are no longer a legitimate government. The reforms that they implement are aimed at impoverishing the population while big businesses that sponsor Yanukovych benefit,” Danylyuk said. Kyiv Post Staff Writer Katya Grushenko can be reached at grushenko@kyivpost.com.

www.kyivpost.com

News 13

April 29, 2011

Authorities’ renewed interest in recordings raises old questions Æ2 used in criminal cases against current and former officials.

The third man One of the most famous conversations relating to Gongadze is a meeting on July 3, 2000 among Kuchma, his chief of staff Volodymyr Lytvyn and perhaps a third unidentified speaker. It’s impossible to say for sure how many people are in the room discussing what to do with the muckraking journalist But the man in the snippet, purported be Kuchma, says: “Deport the son of a bitch [journalist Georgiy] Gongadze. Take him to Georgia and dump him there. Hold the cocksucker for ransom.” Much like tapes secretly recorded in former U.S. President Richard Nixon’s White House during the early 1970s, Kuchma and his associates in Kyiv interrupt each other, curse frequently, talk at the same time and do not pronounce words according to either the Ukrainian or Russian dictionaries. Kuchma says the recordings have been doctored. U.S. criminal defense lawyer Alan Dershowitz, who is defending Kuchma, maintains the eight-minute long snippet from July 3 and others like it should be inadmissible as evidence in a court of law. “The prosecution claims they have new evidence [confirming the authenticity of the Melnychenko tapes.], Dershowitz said in an interview on April 15. “We will see if we can replicate it and come to the same conclusion with our world-renowned

Æ Debate over tapes’ authenticity is central to the case against former president Kuchma experts. Unless and until it’s done, the case doesn’t have any scientific grounds.”

Gongadzegate Socialist Party leader Oleksandr Moroz on Nov. 28 played a 24-minute analog cassette generated from a WAV audio file, dated Sept. 18, 2000, two days after Gongadze disappeared in Kyiv. Copies of allegedly untampered digital audio files used to make Moroz’s “tape” remain available to the public in digital form on the Internet, thanks to a project funded by Harvard University’s Weatherhead Center for International Affairs.

Alan Dershowitz

Kuzmin on April 17 said Melnychenko’s audio collection could also be used in more criminal cases involving other former and current top officials, including Prime Minister Mykola Azarov, who figured in them prominently when he headed the State Tax Administration in 2000. “The recordings can be evaluated in other criminal cases. It’s possible that [the prosecutor’s office] will take other measures,” he said. “At this stage, it’s absolutely logical that we are using them to prove the guilt of those involved in Gongadze’s murder.”

Lawyers The decision to take the Kuchma

Mykola Melnychenko

case to court has many longtime Ukraine observers asking whether it may be a ruse to use the nation’s notoriously subservient courts to whitewash his acquittal or discredit the recordings altogether. What used to be considered a Pandora’s box of official government secrets might turn into a Russian matryoshka doll, according to Andrew Wilson, a senior fellow at the European Council on Foreign Relations. “No one knows how the Kuchma case and Tapegate will pan out,” he said, adding that resurrecting controversial archives could produce more political turmoil. Meanwhile, lawyers for Kuchma’s

defense and prosecutors still disagree about exactly who said what when to whom about Gongadze 10 years ago. Valentyna Telychenko, the lawyer for Gongadze’s wife, Myroslava, said the possible manipulation of the recordings and the way prosecutors have presented them as “material evidence” in their case against Kuchma “gives us cause for concern.” Viktor Petrunenko, Kuchma’s Kyiv-based attorney, said prosecutors so far haven’t identified the specific recordings that prosecutors want to use to try Kuchma. “It’s a mystery,” Telychenko said. “We are still waiting.” Kyiv Post staff writer Peter Byrne can be reached at byrne@kyivpost.com

14 News/Opinion

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April 29, 2011

Fear of unknown consequences still strong 25 years after tragedy Æ1 were burned off by radiation. There were people who began to throw up blood constantly and were suffering from bloody diarrhea and they knew that was the end. I see people now who live lives of invalids,” said Andreyev in an interview, his hands shaking slightly and his eyes wandering around walls of the office covered with pictures of colleagues. Although the ongoing problems at the Fukushima plant, which was struck last month by an earthquake and tsunami, are widely considered to be not as severe as Chornobyl, that nuclear accident offers a unique insight into what lies ahead for the brave workers battling to control the situation, as Andreyev and his colleagues did 25 years ago. Within three months of the accident, around 30 had died, mostly plant workers and first responders. Several hundred thousand so-called “liquidators” who helped clean up the plant after the explosion were exposed to high levels of radiation. Andreyev says they have since suffered from leukemia, cancer and numerous other diseases. A contentious debate surrounds the effect of Chornobyl in terms of the number of deaths it caused. A report by several United Nations agencies published in 2005 estimated that 4,000 people would die from illnesses related to the accident. Andreyev’s organization, the Chornobyl Ukraine Union, says the figure is closer to one million. Andreyev himself avoided fatal injuries, but has nevertheless gone through multiple operations and suffers from a heart condition. He said that much of the work of the thousands of liquidators was wasted and not organized properly. Worryingly, he believes Japan is repeating many of the mistakes made by the Soviet authorities. Ukraine and the liquidators are still toiling with the physical and financial toll of the accident. Protests have been held in central Kyiv in recent weeks by liquidators complaining about what they say is an attempt to cut their already meager

Police restrain activists from Femen, the women’s rights group, during a protest outside the international donors conference on Chornobyl in Kyiv on April 19. The poster reads: “[President Viktor] Yanukovych is worse than radiation.” On April 26, Ukraine marked the 25th anniversary of the explosion at the Chornobyl nuclear power plant. Ukraine is trying to raise 780 million euros for a new containment cover, but has just 550 million euros in pledges.(AP)

benefits, such as discounts on utilities and free use of public transport. “I had great health before going to Chornobyl as a radiation checking doctor. Three months later I started coughing severely and then it turned out to be asthma,” said former Chornobyl medical worker Maya Parhomenko, 75. Andreyev says personal radiation checks were lowered so no one knew the exact harm done to their health. Walks from home to work and living in surrounding areas were not officially considered an exposure to radiation, he said. But the most lasting and widespread consequence of the accident for workers and the thousands who lived around the plant is not physical, studies say, but psychological – the fear of

not knowing what doses they received and how it affects their health. Psychologists say there is a tendency to link illnesses to Chornobyl, even though in many cases health problems were caused by other factors sometimes linked with the upheaval following the collapse of the Soviet Union in 1991. Valentyna Lototska, 66, was evacuated from the small town of Poliske some 35 kilometers from Chornobyl to the town of Baryshivka south of Kyiv where she was given a small apartment. Lototska’s husband, who worked as an evacuation driver, died 11 years after the accident. “He was completely healthy before it all happened,” she said. “After the accident he lost all of his teeth, got heart problems and died of liver cirrhosis.”

Yakov Kenigsberg, the chairman of the National Commission on Radiation Protection in the government of Belarus, said it’s hard to trace the connection between radiation and cancer. “It’s often hard to figure out what caused it – radiation, bad ecology or lifestyle choices,” Kenigsberg said. Tatiana Melnitskaya, a psychology professor at the Obninsk Institute of Atomic Energy in Russia, said the problem was exacerbated by a lack of information. “At the very beginning, people didn’t get any full and comprehensive information about radiation,” Melnitskaya said. “At the same time they underestimate the damage caused by stress they’ve been through.” Stressful situations like evacuation

from their homes, failure to get decent housing or jobs in a new place or the inability to make money to sustain the family eat away at both emotional stability and health. Some people made it even worse by adopting a fatalistic attitude to life, abusing their bodies with alcohol and eating mushrooms from contaminated areas under the impression that they were going to die anyway. “On the one hand, people are obsessed with fear of radiation. They think if they have a headache it must have been caused by Chornobyl,” Melnitskaya said. “On the other hand, many of them disregard some basic tips as not to pick berries and mushrooms in contaminated areas, or abstain from smoking and drinking.” At the same time, social and economic instability following the collapse of the Soviet Union gave some people little choice but to gather what food they could in order to feed their families, even if they knew it could be contaminated. But the attitude taken by some of “victim” rather than “survivor” leads to lasting depression and dependence on government benefits, according to Liudmyla Boyko, director of a social and psychological rehabilitation center in Kyiv Oblast. They are heavily dependent on aid from the government or charities and tend to behave passively, waiting for help rather than acting and making a change, she said. Maryna Skliarenko, who moved out of the contaminated area to Russia and then returned to live in Kyiv, said she believed the government should offer more support. “We are totally neglected. The government ignores us,” she said. Nevertheless, some people find strength to fight and improve their life. Natalia Bashynska, 18, from Korosten survived thyroid cancer. The disease didn’t break her spirit, and now she’s got a part-time job as a nurse at a local hospital. “I don’t want to feel like a victim,” she said. “The worst is already over.” Kyiv Post staff writers Yuliya Raskevich can be reached at raskevich@kyivpost. com and Olesia Oleshko at oleshko@ kyivpost.com.

Deasy: Chornobyl through eyes of Ukrainian schoolgirl Æ5 broadcasts in the hopes of learning more about what happened, the inquisitive 14-year-old heard an announcement that high levels of radiation had been detected in Sweden. “Then I thought, ‘Oh gosh, I didn’t wash my hair in vain if they have radiation somewhere in Sweden – that’s very far from Kyiv,’” she says.

‘Nothing to worry about’ Basically, the authorities “tried to show the world that everything was normal,” Churikova says, adding that they even “organized a cycling championship in Kyiv” in which people were expected to take their bicycles out and spend time outside. But she says people were already trying to escape the city. The government appears to have spared no effort in convincing citizens to stay. Churikova says the 6-year-old grandson of Ukraine’s then-Communist

Party leader, Volodymyr Shcherbitskiy, was paraded around the capital as part of the annual May Day festivities in an effort to calm panic-stricken parents. Meanwhile, rumors circulated about the best ways to offset the contamination. Churikova’s grandmother would slip iodine into her food in one popular treatment that turned out to be largely ineffective. People would believe almost anything. They were “drinking red wine,” she says, “believing that it was cleaning the system because they have heard that Soviet submarine sailors, they were given red wine as part of their daily diet to clean the system from the radiation.” “But some people,” she adds with a laugh, “took it further and they just decided that any alcohol will do the job.”

The authorities, for their part, joined the rumor mill by airing TV segments with “so-called experts,” Churikova says, who would appear on screen “and with a straight face explain that small doses of radiation were beneficial for rats’ health.” Churikova says the reasoning went that “it could be beneficial for human health, too.” However, the charade convinced no one. Fear abounded in Kyiv and a new word, “radiophobia” was being used to describe the panic setting in. “I’ve heard stories of people sending [off] their children,” Churikova says, “packing them away into trains with notes that [said], ‘Here is the name of my kid, take care of him.’” Churikova went to Crimea on Ukraine’s Black Sea coast. She later left Ukraine to study in Tashkent, Uzbekistan.

Chornobyl’s children The children who were in Chornobyl at the time of the accident, meanwhile, were the subject of an international campaign aimed at providing them with world-class medical treatment abroad – something that worried the Soviet authorities, who were then fearful of foreign influences. The Chernobyl Children International project, an Irish-led initiative, which was eventually brought under the wing of the United Nations, ultimately provided 21,000 children with some form of medical treatment. Churikova herself accompanied a group of them to Australia. She says this encounter with the nonSoviet world produced “a whole generation” of young people who were less easily persuaded by the Soviet narrative.

But at the time, Churikova wasn’t thinking about the geopolitical ramifications of the disaster. She was more concerned about losing one of her favorite T-shirts because of the radiation, explaining that as soon as they arrived after traveling to a city far from Chornobyl they were taken to a medical facility for testing. The clothes they arrived in had to be destroyed because they had accumulated too much radiation, she says, recalling, “I had a beautiful blue T-shirt, acrylic T-shirt, which I had to say goodbye to.” Beloved personal belongings were just the beginning. In the end, the victims of Chornobyl had to part with much more, as some saw the disaster take their very lives. Copyright Radio Free Europe/Radio Liberty.

Ukraine celebrates May holidays with official days off on May 2, 3 and 9. Time to get out and about!

April 29, 2011

Searching for Pinzel, Ukraine’s Michelango BY N ATA L I A A . F E D US C HAK FEDUSCHAK@KYIVPOST.COM

LVIV, Ukraine – His work adorns many of western Ukraine’s architectural monuments, but little is known about Ukraine’s 18th century sculptor Ioann Heorhiy Pinzel, who has been compared to Michelangelo and Lorenzo Bernini. Other than tidbits of information – his marriage, the christening of his two sons and his widow’s remarriage after his death – much remains a mystery, even the exact date of his death, and when and where he was born. Historians aren’t even sure Pinzel was his real name. But his creations live on. “Thirteen hundred cathedrals exist in Lviv region alone. They represent an entire school of Pinzel,” said Boris Voznytskiy, the celebrated director of Lviv’s Art Gallery, who has spent the last half century investigating Pinzel’s life and work. “He came here and began something new.” Although regional experts began researching Pinzel in the 1930s, the masterpieces he created have only recently caught the attention of the international art community. Paris’ Louvre Museum will display Pinzel’s works in a first-of-its-kind exhibition in the fall. That show is likely to expose Pinzel to a wide international audience, and firmly win the artist the place he deserves as one of the world’s great sculptors. What is known is that Pinzel showed up in Buchach, a small town in western Ukraine some time in the mid-1740s. He established a workshop and began to create. His benefactor was Mykola Pototskiy, a Polish magnate who was banicja – someone considered to be outside the law – by the authorities. “Pototskiy did pretty much as he pleased,” said Voznytskiy. For instance, tired of marriage, he banished his wife to a monastery in Lviv and paid people to pray for her. By the second half of the 1740s, Pinzel had created allegorical stone figures for Buchach’s town hall, which were commissioned by Pototskiy. Other Pototskiy commissions followed and soon Pinzel’s works dotted the region. Several of his best works are the sculptures atop St. George’s Cathedral in Lviv. Pinzel’s uniqueness stems from his extraordinary technique, Æ20

A guest admires one of Ioann Pinzel’s sculptures in the Ukrainian House during an exhibition in Kyiv in 2008. (UNIAN)

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World d vele er Traveler WITH IULIIA PANCHUK PANCHUK@KYIVPOST.COM

Raw beauty of San Sebastian in Basque Country SAN SEBASTIAN, Spain – Ukrainian tourists usually go to Spain to visit Madrid or Barcelona. Or they check out the Costa Brava, Costa Dorada and Costa del Sol beaches. But in northern Spain, in the Basque Country, the beauty is pristine and not overrun by tourists, yet. Even Spanish natives, tired of crowds of visitors, go here in search of rest along the Atlantic Ocean. San Sebastian is the largest city in the Guipuzcoa province of the Basque Country. It extends along a bay with the whitest sandy beaches amid mountains. Basques name it Donostia, and from 1980 it has been officially called Donostia-San Sebastian. The city was founded in 1180 by the king of Navarre, Sancho the Wise, and was just a little fishing village. The inhabitants hunted whale and fished cod. The busy port exported wine and olive oil to France and England. In the 19th century, when Queen Isabella II moved her summer residence here, the city won fame as a luxury resort. Her Miramar Palace still towers at the end of the halfkilometer Beach of La Concha. It is possible to get to San Sebastian from Madrid or Barcelona by Iberia Airlines, and there are lots of flights from Kyiv to Spain. This cosmopolitan city is filled with the spirit of French romantic architecture, decorated with buildings in Art Nouveau style and other modern decisions. It is definitely worth visiting the Basilica of St. Maria, St. Vicente Cathedral and San Telmo Ethnographic Museum, which in the 16th century used to be a monastery. The beautiful Paseo Nuevo Boulevard sets the mood for pleasant walks. But because the promenade is located right above the ocean waves, it is always windy. Women often have to do a “Marilyn Monroe” in trying to push down their uplifted skirts. In order to feel the ocean’s full force, you should walk to the very end of the quay. This place is famous for a wonderful sculpture called The Comb of the Wind. The Spanish sculptor Eduardo Chillida came up with a creative decision to imbed intricately twisted rail tracks into offshore cliffs. This place is considered to be one of the most romantic in San Sebastian. Breathtakingly beautiful views open up from the top of Igeldo Mountain. The best way to get there is by funicular. The spirit of the Basque people comes alive in an unremarkable, moun- Æ20

Plan ahead

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April 29, 2011

Saturday, April 30

(2.bp.blogspot.com)

16 Entertainment Guide

Muse is an English alternative rock trio. Citing the legendary band Queen as one of their main inﬂuences, the band is known for seemingly endless creativity in putting out ﬂamboyant shows. Muse’s rising popularity keeps critics restless as they debate the depth of their lyrics, their habit to sing in falsetto, and traces of U2, Nirvana or Radiohead in their music. To date, they have sold over 10 million album copies worldwide and enjoy a warm welcome anywhere they go. Tuesday, May 24, 7 p.m., Palats Sportu, 1 Sportyvna Sq. Tickets: Hr 500-1100. Chemical Brothers is an electronic duo from the UK brought together by… Medieval history, which musicians, Tom Rowlands and Ed Simons, studied in Manchester University. But it seems like they were destined to make history themselves, pioneering an electronic genre called big beat, alongside Prodigy and Fatboy Slim. Wednesday, May 25, 7 p.m., Palats Sportu, 1 Sportyvna Sq. Tickets: Hr 250-850.

Ringo Starr is the name that says it all. A drummer of arguably the most influential band of all times, the Beatles, is now 70 but still playing. He is not the first ex-Beatle to grace Kyiv: Paul McCartney, the band’s ex-front man, visited us in 2008. Don’t miss the chance to see the author of “Yellow Submarine” and “Octupus’ Garden” live on stage. Saturday, June 4, 7 p.m., Palats Ukraina, 103 Velyka Vasylkivska St., 247-2303. Tickets: Hr 500- 5500. Moby is an American DJ who has gone the distance from punk to electro. He is the kind of guy who people call too soft, too chilled and the one Eminem hates, but still can’t stop listening to his music. Moby got rich and famous not only for his tracks, but also thanks to his inventive business mind, when he licensed off his 1999 album “Play” for use in advertisement. Selling about 10 million album copies worldwide, Moby is also influential enough to make some critics call him one of the main dance figures in America. Friday, June 10, 7 p.m., Palats Sportu, 1 Sportyvna Sq. Tickets: Hr 250-850.

Indian art and culture fare There are many people in Ukraine who love Indian culture whether they’ve been there or not. Mozart Society Magic Flute organizes a colorful feast in memory of Sahaja Yoga (religious movement) founder, Nirmala Srivastala, who besides her spiritual teachings, was known to support of classical music and art. Saturday, April 30, Cultural center Master-Klass, 34 Mazepy St., metro Arsenalna, www.masterklass.org/eng, 594-1063. Free admission. 3 p.m. – concert of Kyiv band Bkhadzhan followed by their workshop on Indian reggae and tabla, traditional Indian instrument. 4.30 p.m. – dance ensemble Lakshmi Samarpana followed by their workshop on Indian dance. 5.30 p.m. – concert and workshop of Ukrainian musician Oleksiy Kabanov who plays classical Indian string instruments sitar or sarod, among others. 7 p.m. – ﬂute concert accompanied by the Kyiv music academy orchestra with music pieces by Mozart, Puccini, and Strauss, among others.

Sunday, May 8

Compiled by Nataliya Horban

(www.sensation.com)

Korn is a Grammy-winning American band from California said to play in the “nu” metal style, a derivative of heavy metal. Yet band members insist that they play rock and nothing, but rock. Korn is also pretty stubborn when it comes to lyrics: Most of time they are pretty negative. For a while, even MTV wasn’t too fond of them, which was the reason musicians didn’t make any videos. But with time, Korn’s fan base grew and they are in demand speciﬁcally for their dark style. Monday, May 30, 7 p.m., Palats Sportu, 1 Sportyvna Sq. Tickets: Hr 300-750.

White sensation For the fans of Sensation music festival, life is truly black and white. The show, which ﬁrst appeared in the Netherlands 11 years ago, has two editions: Black and White. While Black brings hard trance and hardstyle, White Sensation is all about house, electro and trance and that’s the one Kyiv will host. Following the festival’s slogan “Be part of the night - dress in white,” everyone must wear white. For Kyiv’s rendition of “The Ocean of White” – the full name of the gig – names of only two headliners have been revealed so far: Fedde Le Grand, the Dutch house DJ, and Martin Solveig, his French counterpart. Stay tuned. Sunday, May 8, 9 p.m., Mizhnarodny Vystavkovy Tsentr, 15 Brovarsky Prospekt. Tickets: Hr 549-1199.

What to do on long May break Saturday, April 30 – festival of Georgian culture with traditional songs and dances at 6 p.m., Budynok Ofitseriv, 30/1 Hrushevskoho St. Tickets: Hr 70-250. Saturday, April 30 – concert “French nights” with Ukrainian musician Oleh Skrypka and jazz duo Zabava at 8 p.m., Crystall Hall, 1 Dniprovsky Uzviz St., 288-5069. Tickets: Hr 100-500. Sunday, Monday, May 1-2 – ethnic jazz festival Fluhery Lvova, or Lviv Weather Vanes, will take place in Kyiv for the first time. 5 p.m., Dyvan, 2 Bessarabska Sq. Tickets: Hr 100-120. Sunday, May 8 – Kyiv Marathon offers three different runs: 21,097 meters, 5 km, and 1 km for children. You better start training. Register www.kyivmarathon.org. Participation fee: Hr 20-90, free for children and people with disabilities. Start at 10 a.m. Monday, May 9 – concert of World War II songs at 7 p.m., National philharmonic, 2 Volodymyrsky Uzviz, 278-1697, www.filarmonia.com.ua. Tickets: Hr 20-70.

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April 29, 2011

Movies

Entertainment Guide 17 Live Music

MASTERCLASS CINEMA CLUB 34 Mazepy St., 594-1063. Main Street: May 3 at 7 p.m. Oh! What a Lovely War: May 5 at 7 p.m. ZHOVTEN 26, Kostyantynivska St., 205-5951. Shorts Attack! April 29-May 5 at 1:05 p.m., 4:25 p.m., 6:25 p.m. and 9:40 p.m.

If you are failing school exams, all it may take is a night of spontaneous sex to succeed, as is the case in ‘Lelle Belle.’ (cf1.imgobject.com)

LONG NIGHT OF FRENCH SHORTS Enjoy 25 spectacular French shorts all night until dawn. A 40-year old married African pimp offers a 17-year old Polish girl a job and she agrees in “Hers and His.” A gymnast shows his tricks right on the streets of Manhattan in “Stretching.” A man returns home after a long absence in “Bitter-ender.” A traveller shows you the secrets of Madagascar in “Madagascar, a Journey Diary.” A boy who lives in a colorful postcard falls in love with a girl from a black-and-white one in the surrealistic “La Carte.” A famous French violin player plays in diverse environments in “7.57 a.m.- p.m.” Three burglars receive an order to steal money from their own boss in “Bloody Crumble.” A father tries to make up with his runaway son in “The Bad Seed.” And a beautiful girl seems to have met the love of her life in “Julie and Her Guys.” All shorts are shown in French with Ukrainian subtitles. FLYING DUTCH FILM FESTIVAL Love, loss and guilt fill the life of a teenager as he looks for work in a greenhouse in “Shocking Blue.” Young violin player Belle dreams of studying in music school, though no one believes in her talent. Unexpected sex with a stranger gives her strength to pass an exam in the erotic drama “Lelle Belle.” A pregnancy turns the life of a young

happy couple upside down in “Hunting & Sons.” A nine-year old girl finds a sinister new friend in the ghost of her mother’s dead twin sister in horror film “Two Eyes Staring.” A promiscuous investment banker becomes a successful trader overnight in “Win/Win.” And the life of the Dutch Queen is shown in the documentary biopic “Beatrix, Queen.” All films are screened in Dutch with Ukrainian subtitles. OH! WHAT A LOVELY WAR Language: English with English subtitles Musical/War. USA (1969) Directed by Richard Attenborough Starring Wendy Allnutt, Colin Farrell and Malcolm McFee At the beginning of World War II several children from the Smith family are sent to the front line. They witness the murder of Duke Ferdinand, the meeting of German and British soldiers on neutral territory and mass destruction of the Irish, who have recently arrived at the front. The film is based on the musical of the same name and much of its action revolves around the words of the military marching songs. MAIN STREET Language: Spanish with Russian or Ukrainian subtitles Drama. Spain (1956) Directed by Juan Antonio Bardem

KYIV CINEMA 19, Chervonoarmiyska (VelykaVasylkivska) St., 234-7381. Flying Dutch Film Festival Two Eyes Staring Apr. 29 at 5 p.m., May 2 at 7 p.m. Lelle Belle Apr. 29 at 7 p.m., May 1 at 5 p.m., May 3 at 7 p.m. Shocking Blue Apr. 30 at 5 p.m., May 2 at 5 p.m. Beatrix, Queen Apr. 30 at 7 p.m., May 4 at 5 p.m. Hunting and Sons May 1 at 7 p.m., May 3 at 5 p.m. Win/Win May 4 at 7 p.m. UKRAINA CINEMA 5 Horodetskoho St., 279-6750, 2796302 Long Night of French Shorts Apr. 29 – May 1 at 11:30 p.m. Starring Betsy Blair, José Suárez and Yves Massard A group of friends decide to have a good time and play a trick on unmarried woman Isabel. She is nearly 35, alone and depressed. One of the men, Juan, pretends to be in love with Isabel. But as she falls for his game, he can’t bring himself to tell the truth. SHORTS ATTACK FESTIVAL If you think that love is pain, welcome to the club. The festival “Love is a Catastrophe” presents a selection of short films from all over the world. In surreal and sometimes odd onscreen stories an alien comes to Earth and finds love, while a scuba diver falls for a fish. A grandmother fights for her beloved car. Two people in love survive the end of the world. An Italian aristocrat loses her dear cat in the airport. A woman struggles with jealousy. And someone gets lost in fields. All shorts are shown in original language with Ukrainian subtitles.

Band Riffmaster in Art Club 44 (http://g.io.ua) ART CLUB 44 44B Khreshchatyk St., 279-4137, www.club44.com.ua Concerts traditionally start at 8 – 10 p.m. April 29 VIA Zhiguli, Hr 50 April 30 Legkiy Flirt, Hr 50 May 1 Tinavie (Russia), Hr 40 May 2 Rockurok, Hr 50 May 3 Good evening! Vol.4. Lightweight Collapse, Hr 40 May 4 Vladimir Gorohov, Geyzer, Hr 50 May 5 Riffmaster, Hr 50 DOCKER’S ABC 15 Khreshchatyk St., 278-1717, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. April 29 Ot Vinta, Red Rocks, Hr 70 April 30 Partyzanskie Vytivky, Hr 30 May 1 Vostochny Express, free admission May 2 Tex-Mex Company, free admission May 3 Tres Deseos Latino Party, Hr 20 May 4 Rockin’ Wolves, Hr 30 May 5 Ruki v Briuki Rockabilly Party DOCKER PUB 25 Bohatyrska St., metro Heroyiv Dnipra, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. April 29 Anti-Tela, Tex-Mex Company, Hr 70 April 30 Foxtrot Music Band, Hr 70 May 1 Strong Time, Hr 50 May 2 Gera, Second Breath, free admission May 3 More Huana, free admission May 4 Tex-Mex Company, free admission May 5 Chill Out, free admission BOCHKA PYVNA ON KHMELNYTSKOHO

4B-1 Khmelnytskoho St, metro Teatralna, 390-6106, www.bochka.com.ua Concerts traditionally start at 9-10 p.m. April 29 Carte Blanche, Lucky Band, April 30 Chill Out May 1 Pick Up, Hr 30 PORTER PUB 3 Sichnevogo Povstannya St., 280-1996, www.porter.com.ua Concerts traditionally start at 7:30 p.m. April 29 Yuhym Dym April 30 Pozitiv Band JAZZ DO IT 76A Velyka Vasylkivska St., 289-56-06, http://jazz-doit.com.ua Concerts traditionally start at 8:30 p.m. April 29 Igor Bogdanov, April 30 Jazz Inside Other live music clubs: GOLDEN GATE IRISH PUB, 15, Zolotovoritska St., 235-5188, http:// goldengatepubkiev.com/ TO DUBLIN IRISH PUB, 4 Raisy Okipnoi St., 569-5531, http://www.to-dublin.com. ua/ PIVNA NO.1 ON BASEYNA, 15 Baseyna St., 287-44-34, www.pivna1.com.ua DRAFT 1/2 Khoryva St., metro Kontraktova Ploshcha, 463-7330 KHLIB CLUB 12 Frunze St., www.myspace. com/xlibclub CHESHIRE CAT 9 Sklyarenko St., 428-2717 O’BRIEN’S 17A Mykhaylivska St., 279-1584 DAKOTA 14G Heroyiv Stalinhrada St., 468-7410 U KRUZHKI 12/37 Dekabrystiv St., 5626262.

Compiled by Alexandra Romanovskaya and Svitlana Kolesnykova

18 Lifestyle

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April 29, 2011

Italian transavantgarde defined in Kyiv BY A N A S TA S I A F O R IN A FORINA@KYIVPOST.COM

While almost all galleries are packed with modern Ukrainian art, M17 contemporary art center has put on a dis-

play a movement that influenced much of it – Italy’s transavantgarde. This movement of Italian artists – proponents of a style that literally means “beyond the avant-garde” – introduced emotion back into modern

Sandro Chia’s untitled work resembles Picasso’s cubist paintings. (m17.com.ua)

art. It rose to prominence in the 1980s, just around the time when dissident Ukrainian artists were looking to break free from strict Soviet artistic policy. Works by Sandro Chia, Enzo Kukk,Nicola De Maria, Francesco Clemente and Mimmo Paladino presented at the opening on April 15 are taken from the original show at the Venice Biennale in 1980 that influenced Ukrainian “New Wave” artists such as Arsen Savadov and Vasyl Tsagolov. The exhibition was opened by art critic Akile Bonito Oliva, the father of the movement who curated the Biennale show. It features a huge variety of oil paintings from a triangle and rectangle diptych painted in red and blue to colorful pictures in large vintage engraved wooden and steel frames that look like Russian icons. The Italian artists aimed to break away from art as a commercial, political or historical project. Instead, they wanted to infuse it with feelings, combining methods from sculpture, graphic art and collage to enrich their paintings. “Transavantgarde declared art not influenced by politics or history, based on expressiveness and not on profit,” said Vieri Sorace-Mareska, the head of Italian Institute of Culture in Kyiv. Among featured artists, Sandro Chia uses bold and sharp lines and bright colorful scheme that make his paintings attractive and expressive. Some of his works contain features of Pablo Picasso’s cubist paintings, for example, the untitled portrait of a person sitting on a chair near a table with a bottle on it, where each image seems to be made of different geometric forms. Oleksiy Tytarenko, curator of M17 contemporary art center, pointed out

A guest at the opening of the exhibition on April 20. (m17.com.ua)

two paintings by Mimmo Paladino “Angel” and “Untitled (Gold background)” as characteristic of the movement’s strong, lively images. The former shows an angel inside a dove-like bird’s head drawn in profile; the latter depicts a black angel on a gold background with white ellipse-shaped spot on his breast. Paladino follows antique Russian iconographic traditions in his works, and one of them, “The Heart of Russia,” is dedicated to the country. It looks like an old icon with a large wooden frame, depicting a sad red face on top of a white one with three Cyrillic letters made of twigs tacked to the picture. The whole exhibition brings together different reflections on modern world, and each image no matter abstract or formalistic possesses a great inner background, not historical or political,

but based on the artist’s fantasy and feelings. “The main aim of the exhibition is to show how deeply Italian transavantgarde art influenced Ukrainian modern art in early ‘80s and make the contemporary art get rid of the Anglo-Saxon model of profit,” said Sorace-Mareska. The follow-up to the exhibition will be a show in Italy presenting works of Ukrainian New Wave artists along with the Italian transavantgardists’ paintings. Kyiv Post staff writer can be reached at forina@kyivpost.com M17 Contemporary art center, 102-104 Gorkogo St., metro Palats Ukraina, www.m17.com.ua, until June 15.

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Paparazzi 19

April 29, 2011

ETOILE dancing group

Erotic witches’ sabbath Participants stir up some fire during the show.

Erotic dance festival “Sabbath” shook Kyiv on April 23. Professional dance groups and those for whom dancing with a pole is a hobby descended on the capital from Donetsk, Lviv and Kharkiv. “A witch lives in every woman” is the festival’s motto. Organizers encouraged both men and women at the show to pick up erotic dancing classes to develop their sexuality. (Yaroslav Debelyi)

If you want Kyiv Post Paparazzi to cover your event, please send details or invitations to news@kyivpost.com or contact photo editor Yaroslav Debelyi at 234-6500

Hello, Blue! Goodbye, Mika!

British band Blue In addition to Easter, Ukrainians celebrated singer Mika Newton’s departure to Germany as she prepares to represent Ukraine at Eurovision Song Contest to be held in Dusseldorf on May 14. Old and new Eurovision participants also performed in front of a large crowd on Independence Square on April 24. British band Blue, which will represent the United Kingdom in this year’s contest, took the stage along with other participants from France, Austria, Moldova and Azebaijan. (UNIAN)

Ruslana (L) and Mika Newton (C) with Blue band members.

20 Lifestyle

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April 29, 2011

Sculptor Pinzel’s works to grace Louvre in fall Æ15 Voznytskiy said. While his ear-

Santa Maria Basilica combines gothic, baroque and neoclassical elements is one of the most popular attractions in San Sebastian. (Courtesy)

Panchuk: Basque Country beaches, cuisine worth visit Æ15 taintop stone tower with walls decorated by old pictures. The ethnic Basques have waged an ongoing struggle for independence from Spain. Only once did they succeed, briefly, in the 1930s. Longtime Spanish dictator Francisco Franco (1892–1975) tried to assimilate the Basques. At the end of his rule, however, the underground organization Basque Homeland and Freedom appeared, known by the ETA acronym, reviving the dream of an independent Basque Country through terrorist attacks. But such civil conflicts are far from mind on San Sebastian’s sandy beaches. The three main beaches are: Ondaretta, for peaceful rest; La Concha, the central and biggest one; Zurriola, for surfers and young people. The beaches are not crowded, especially in spring and autumn. The cleanliness is a welcome contrast to many of the beaches in our Ukrainian motherland. Don’t forget about the exquisite Basque cuisine. World-famous pintxos are little masterpieces in the form of sandwiches, as well as canape and mini-shashlik. They are traditionally offered in street bars and go well with

beer, wine and cider. In the city center, dozens of bars are clustered together, offering a gastronomic exhibition. Festivals are another feature. The International Film Festival in San Sebastian was founded in 1953. It starts in September and attracts more than 100,000 visitors. But there are even more festivals, concerts, fireworks and other events to ensure that a visit to this northern Spanish paradise will never be boring. Kyiv Post marketing and communications manager Iuliia Panchuk can be reached at panchuk@kyivpost.com Useful links: • www.donostia.org • www.iberia.com • www.renfe.com • www.euskotren.es Trip budget: Return ticket Kyiv – Barcelona (Alitalia) – $250 Return ticket Barcelona – SanSebastian (Iberia) – $110 Train ticket Barcelona – San-Sebastian (Renfe) – $63 Standard double room– $65

lier works speak largely of the Baroque style that dominated European art in the late 16th to early 18th centuries, it is evident that Pinzel was strongly influenced by Byzantine art. The region’s inhabitants followed the Byzantine rite and their art reflected that system of beliefs. By the end of his life, Pinzel’s works were a fiery intermingling of the Baroque and the Byzantine. The lack of personal details about Pinzel’s life triggers as much intrigue as does his art. Despite countless hours of research by Voznytskiy and others, they remain as ill-defined as the wood and stone the artist worked with to create his masterpieces. Voznytskiy surmised it was the well-known regional architect Bernard Meretyn – responsible for a number of western Ukraine’s architectural achievements – who brought Pinzel to Pototskiy’s attention. In 2005, Voznytskiy published a book about the lives and work of the three men. The little information that is gleaned about Pinzel’s personal life comes from the church registrar from Buchach’s Uspenskiy Sobor where he was married. The book was discovered in Warsaw, Poland just over a decade ago. While the registrar provides a tiny glimpse into Pinzel’s private life, it doesn’t answer the larger question of what prompted the sculptor to settle in the region in the first place. “With that level of artistry, what brought him to Buchach?” mused Lesia Banah, the deputy director of Lviv’s Pinzel Museum, which now houses the majority of the sculptor’s work. Several theories exist about Pinzel’s origins. One says the sculptor was a talented youth from Buchach who studied in Europe, only to return to his native town. More likely theories, however, assume that he was from Prague or south Germany – regions with strong Baroque schools – and may have been running away from the law. It wasn’t unusual for indi-

Lviv Art Gallery director Boris Voznytskiy stands near Ioann Pinzel’s sculpture in Lviv. (UNIAN)

viduals who got into legal trouble to head east, a territory considered too troublesome for lawmen to bother with. Banah said she favors Italy as a possibility. “It is clear, however, Pinzel knew all the European schools,” she said. Voznytskiy has over the years followed the trails of several European artists who had disappeared from the art scene, including two Italians, hoping to determine Pinzel’s origins. In every instance he has come up short. In case of the Italians, “the dates just didn’t coincide,” he said. In 1999, further mystery was added when five draft figurines by Pinzel showed up at an art auction in Munich. They were promptly pur-

chased by Munich’s Bavarian National Museum. Although “they appeared after two centuries of silence,” Voznytskiy said their appearance suggests Pinzel’s family left Buchach after his wife’s remarriage, taking some of his works with them. As for Pinzel, Voznytskiy said he believes the sculptor is buried somewhere in Buchach and he died sometime in 1761. Kyiv Post staff writer Natalia A. Feduschak can be reached at feduschak@ kyivpost.com Lviv’s Pinzel Museum 2 Mytna Ploshcha St., Tuesday-Saturday, 10 a.m. - 5 p.m., on Sunday 12 p.m. - 5 p.m., 032-275-6966.

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Paparazzi 21

April 29, 2011

One of the priciest lots in the auction, a children’s book written by Madonna

Easter charity auction

Celebrities and businessmen attended a charity auction on the eve of children’s festival “Meet Your Dream.” On April 21 in Premiere Palace hotel, ornamental Easter eggs and various memorabilia items, among them a children's book written and signed by Madonna herself, were auctioned off with proceeds going towards the festival. In its fifth year, the event was chaired by Eugenia Carr, the daughter of ex-Prime Minister Yulia Tymoshenko. Competing in song and dance, participants from 11 orphanages also had a chance to meet British band Blue that performed in front of the kids on April 25. More information about the festival at www.mriy.org.

A child muses in front of special Easter lots.

Participants of ‘Meet Your Dream’ festival

Aleksandr Krilov, owner of Krilov’s Auction House

Organizers Sean Carr and his wife Eugenia.

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April 29, 2011

RTI International is an independent non-profit research organization dedicated to conducting research and development that improves the human condition by turning knowledge into practice. We offer innovative solutions across a range of areas including economic development, governance, education, health, and technology.

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RTI is seeking candidates for the following positions to support anticipated USAID-funded Reproductive Health and HIV/AIDS projects in Ukraine. All applicants should have excellent English language skills; Ukrainian/Russian language skills will be preferred. â&#x20AC;˘ Chief of Party. Applicants must have a minimum of 12 yearsâ&#x20AC;&#x2122; experience implementing health programs, preferably in the area of RH/FP or HIV/AIDS; Experience in Ukraine or E&E region; Experience working in a Chief of Party / Senior Management position for a USAID or PEPFAR funded project; Demonstrated capacity to effectively manage client relationships, staff, and project deliverables; MD or equivalent of MPH, MA/MS in related field. â&#x20AC;˘ Senior FP/RH Advisor. Applicants must have at least 5-7 years experience working on FP/RH programs in Ukraine; MD or equivalent of MPH, MA/MS in related field; Experience with USAID/PEPFAR preferred. â&#x20AC;˘ HIV/AIDS Advisor. Applicants must have at least 5-7 yearsâ&#x20AC;&#x2122; experience working on HIV/AIDS programs in Ukraine or E&E region in prevention, care, treatment, support and/or HIV networking/advocacy; MD or equivalent of MPH, MA/MS in related field; Experience with USAID/PEFPAR preferred. â&#x20AC;˘ M&E Specialist. Applicant must have 6-8 yearsâ&#x20AC;&#x2122; experience developing M&E plans for USAID health projects; providing support to COP and technical teams in the development and tracking of project indicators; Experience with FP/RH and HIV/AIDS performance indicators a plus; Experience with USAID/PEPFAR preferred; Bachelors degree required. â&#x20AC;˘ Finance and Administration Manager. Applicants must have at least 8-10 yearsâ&#x20AC;&#x2122; experience working in finance and administration for USAID-funded projects; Prior experience overseeing HR, finance, grants, and administration activities; Masters in Business Administration, Finance, or related; Experience with RH or PEPFAR projects preferred. How to Apply: Submit a detailed CV with contact information to cihstaffing@rti.org. Indicate â&#x20AC;&#x153;Ukraineâ&#x20AC;? in the subject line. Deadline for submission of applications is May 15, 2011. Only short listed applicants will be contacted. RTI is proud to be an EEO/ AA employer.

VACANCY ANNOUNCEMENT United Nations Development Programme (UNDP) invites applications from highly qualified, energetic, proactive and experienced professionals for the posts of

PROJECT MANAGER, SC (AID FOR TRADE (PHASE II) who *T )JSJOH

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will be based in Kyiv and will coordinate the activities of the project aimed at Ukraine supporting inclusive growth in Ukraine through the promotion of trade and the enhancement of Ukraineâ&#x20AC;&#x2122;s competitiveness, to assist in its efforts to reduce poverty and improve peoplesâ&#x20AC;&#x2122; lives. Detailed job description is available at http://jobs.undp.org/cj_view_job.cfm?job_id=22803

DEADLINE FOR APPLICATIONS IS 10/05/2011 All interested candidates should complete the UN PERSONAL HISTORY FORM* (P-11) available on http://undp.org.ua/en/jobs and attach it to the on-line application.

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UNDP Office in Ukraine 1, Klovskiy uzviz, Kiev 01021

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DESIGNER for the print media

Conditions: Location: 22B Prorizna street, courtyard Time: full-time job We offer: stable and on-time competitive wage; medical insurance Responsibilities: Create, review and assemble advertising and marketing layouts, graphics for special projects and price lists Create Employment/Classifieds section layouts according to the approved design concept of the publication

Requirements: Expert experience in Adobe Photoshop, Adobe Illustrator, In Design Strong understanding of publication design standards and specifications (Style Book) Knowledge and Experience with publishing work and printing technology Adobe Flash, ability to create a flash banner is an advantage English is an advantage Personal qualities: Responsibility Creativity Ability to work as a part of a team

Get more information about Kyiv Post at www.kyivpost.com/newspaper/ Please submit your resume with the desirable salary to hr@kyivpost.com indicating the name of the vacancy "Designer" in the subject line.

The

OFFICE MANAGER/ TRANSLATOR

The ideal candidate is someone: who possesses great English-language skills who enjoys working in a fast-paced, deadline-oriented environment at Ukraineâ&#x20AC;&#x2122;s leading English-language newspaper who has journalism and website experience The position requires someone who has a positive attitude, who can quickly and accurately translate letters and e-mails on occasion and excels at solving problems in support of the advertising and editorial staff. Please e-mail CV and cover letter to Brian Bonner, senior editor, at:

who is eager for career advancement

bonner@kyivpost.com

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April 29, 2011

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