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t Bookkeeping and Reporting services t Human resource and Payroll services t Corporate secretarial services TMF Ukraine LLC Yaroslaviv Val, 23A, 2nd floor 01034, Kiev, Ukraine ph. +38 044 428-94-44 e-mail: Ukraine@TMF-Group.com
March 25, 2011
www.kyivpost.com
vol. 16, issue 12
Kuchma charged in Gongadze’s murder K Y I V P OS T S TA F F
Prosecutors charged former President Leonid Kuchma with involvement in the gruesome 2000 murder of journalist Georgiy Gongadze, a move greeted by shock and skepticism among critics who have long questioned whether top officials will be punished for alleged involvement in the sensational crime. Kuchma, 72, on March 24 was charged with
exceeding his authority and abuse of power, actions which allegedly led to the journalist’s death. He denied the charges. A spokesman for the prosecutor’s office and a lawyer for Gongadze’s widow, Myroslava, said that the statute of limitations on the charge expired last September, meaning that even if convicted he may not face jail time. “If found guilty by a court ruling, Kuchma will be convicted, but may not face any punishment,”
Yuriy Boychenko, spokesperson for Ukraine’s general prosecutor’s office, told the Kyiv Post. But if the court decides not to apply the statute of limitations and finds Kuchma guilty of charges that he currently faces, the ex-leader could spend up to 12 years in prison. Boychenko also said that further charges, possibly even murder, could be added. “Investigators have today charged Kuchma ... on Former President Leonid Kuchma enters the exceeding authority, which led to the death Æ18 General Prosecutor's Office on March 23.
Amortization
High Risk
Bankruptcy
Key Economic Indicators
Debt To Income Ratio
Return On Investment Bureaucracy
Investment Corporate Raider
Devaluation
Exit Strategy
Net Assets
Growth Stock
Active Investing
Cash Flow
Opportunities Small-and-Mid Capital Firms
Call And Put Options
Asset Bubble
Foreign Direct Investment
PFTS Stock Exchange Profit And Loss Statement
SPECIAL EDITION
Initial Public Offering Corruption Aggregate Risk
Regulations
• Investment coverage, pages 9-16. • Inside Human Resources, a new feature, page 8.
Bailout
Closed Fund
Investment Fund
Buyout Leverage
High Reward
Equity
Short Sell
Market Share
National Bank of Ukraine Council head Petro Poroshenko (L) and British Ambassador to Ukraine Leigh Turner open British Business Days. See page 12.
Inside:
Many investors see promise in small businesses. See story on page 9. Above, the Shostka Cheese Factory in Sumy Oblast.
News Æ 2, 6, 17, 18 Opinion Æ 4, 5, 17
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A 3,000 pig farm near Lviv is an example of how modern agricultural techniques can thrive in Ukraine. See page 10.
Business Æ 6 – 16
Employment/Real Estate/ Lifestyle Æ 19 – 27, 32 Classifieds Æ 30, 31
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MARCH 25, 2011
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March 25, 2011
Vol. 16, Issue 12 Copyright © 2011 by Kyiv Post The material published in the Kyiv Post may not be reproduced without the written consent of the publisher. All material in the Kyiv Post is protected by Ukrainian and international laws. The views expressed in the Kyiv Post are not necessarily the views of the publisher nor does the publisher carry any responsibility for those views. Газета “Kyiv Post” видається ТОВ “ПаблікМедіа”.
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прим. Ціна за домовленістю. Матерiали, надрукованi в газетi “Kyiv Post” є власнiстю видавництва, захищенi мiжнародним та українським законодавством i не можуть бути вiдтворенi у будь(якiй формi без письмового дозволу Видавця. Думки, висловленi у дописах не завжди збiгаються з поглядами видавця, який не бере на себе вiдповiдальнiсть за наслiдки публiкацiй. Засновник ТОВ “Паблік-Медіа” Головний редактор Брайан Боннер Адреса видавця та засновника співпадають: Україна, м. Київ, 01034, вул. Прорізна, 22Б Реєстрацiйне свiдоцтво Кв № 15261(3833ПР від 19.06.09.
Palestinian mystery deepens BY OKS AN A GRY TSENKO GRYTSENKO@KYIVPOST.COM
Late on March 21, Veronika Abu Sisi sank into a chair in her parents’ modest flat just outside Kyiv after an exhausting day of meetings with lawyers, police officers and officials. Despite several weeks of frantic efforts, including appeals to Ukraine’s president, Interior Ministry and security service, she’s still waiting for an answer to the question that has been tormenting her for the past month: What happened to her husband? Palestinian power plant engineer Dirar Abu Sisi disappeared from a Kharkiv-Kyiv train on Feb. 19 while in Ukraine to apply for a residency permit. One day later, he turned up in an Israeli jail. Ukrainian authorities have so far
Veronika Abu Sisi. (Joseph Sywenky)
reacted with confusion as to what happened, denying any knowledge of the circumstances surrounding the disap-
pearance, which Veronika, a 32-yearold Ukrainian, said she believes was a kidnapping by Mossad, the Israeli
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security service. She claims that Ukrainian authorities are lying and not only knew about the apparent seizing of her husband, but were complicit in the kidnapping. Despite the denials of Ukrainian authorities, support for this theory was provided by the Palestinian Center for Human Rights, a Gaza-based nongovernmental organization that quoted Dirar Abu Sisi in describing to a lawyer his abduction from the train and subsequent transfer to Israel. Complicit or not, the disappearance raises questions about how a person can be spirited away from a supposedly democratic and independent country without going through any extradition procedures. “How can I explain to my children that their father wasn’t killed by a bomb in Palestine but disappeared from a train in a democratic country?” Æ17
Надруковано ТОВ «Новий друк», 02660, Київ, вулиця Магнітогорська, 1, тел.: 559-9147 Замовлення № 11-3870 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
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Spring ahead
Украинки знают больше, абортов делают меньше.
Time to move the clock an hour ahead on March 27.
Украинки учатся предохраняться и не делать аборты
CORRECTION The Kyiv Post incorrectly listed Oleksandr Danyevych, deputy head of the state treasury, as being jailed on suspicion of abuse of office in its March 11 feature “Jailhouse Watch.”
Ирина Сандул Общее число абортов в Украине постепенно падает. По данным Министерства здравоохранения (МОЗ), за последнее 10-летние оно сократилось более чем в 2 раза. Причина тому — растущие доступ-
ность контрацептивных средств и сексуальная грамотность населения, говорят врачи. Ирина Дорошенко, заведующая женской консультацией Роддома N5 в Киеве, говорит, что, если в 20022003 годах в ее женской консультации в день делали 12 абортов, сейчас — максимум 3. Согласно исследованию «Аборты и контрацепция в Украине», которое проводилось в 2008 году совместно Министерством Здравоохранения и ВОЗ, за период с 1991 по 2007 годы количество женщин, которые использовали гормональную контрацепцию, увеличилось более, чем в 5 раз. Тем не менее, по числу абортов Украина остается в лидерах среди стран Европы...
Пенсии растут, но цены растут быстрее Мария Шамота Пенсионеры стали получать в сред-
нем на 15% больше, чем в прошлом году. Им от этого никакой пользы, ведь стоимость продуктов и расходы на коммуналку выросли еще сильнее. И будут расти в дальнейшем...
"Газету по-киевски" убила цензура.
«Газета по-киевски» закрыта по политическим мотивам Ирина Сандул С 21 марта телефоны в «Газете по-киевски» не отвечают. Уже с 11
марта газета не выходит в печать. Причина произошедшего – политическая цензура и давление на собственника, утверждает коллектив издания в официальном письме, которое редакция разослала подписчикам по электронной почте. Теперь газета выходит самиздатом в формате PDF, который читатели могут самостоятельно распечатать. «Весь конфликт начался по факту политического давления», - рассказал Kyiv Post главный редактор Сергей Тихий. Он уточнил, что проблемы у редакции появились после того, как 21 февраля газета опубликовала критическую статью о телемосте Президента Украины Виктора Януковича. Она называлась «Янукович-LIVE: cпросите, если сможете»... Полный текст статей и блогов можно прочитать на www.kyivpost.uа
FIVE MOST-READ STORIES OF THE WEEK ON
ПЯТЬ САМЫХ ЧИТАЕМЫХ СТАТЕЙ НЕДЕЛИ НА
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1
Big And Broke?
1
Реакторы на японской АЭС удалось охладить
2
Ukraine ties ‘open sky’ deal to visa-free travel
2
Японская АЭС больше не будет работать
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Ukraine advises Japan to use tin to cool Fukushima reactor
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Путин назвал операцию в Ливии бессовестным крестовым походом
4
Kyiv moves to ban sales of alcohol, cigarettes in kiosks
4
Бедствия в Японии унесли уже более 17 тысяч жизней
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Ukrtelecom message: Closed to investment?
5
В Тихом океане произошло землетрясение
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March 25, 2011 Advertisement
European Business Association News
,EADERS 4ALK Leaders Talk: Leslie Hawrylyshyn, Chairman of the Board, BritMark 7HAT IS YOUR IDEA OF THE DEVELOPMENT COMPLEXITIES OF 5KRAINIAN BUREAUCRACY )TlS OF INSURANCE MARKET IN 5KRAINE AND YOUR THAT OR HIRE AN EXPERIENCED LOCAL TEAM )F YOU COMPANYlS DEVELOPMENT PERSPECTIVES FOCUS ON IRREGULARITIES YOURSELF YOU WILL HAVE NO TIME FOR THE REST &URTHERMORE YOU HAVE TO BE A 5KRAINIAN EVEN TO COMPREHEND AND EVALUATE SOME SITUATIONS ,%3,)% (AWRYLYSHYN
#HAIRMAN OF THE "OARD "RIT-ARK
) BELIEVE THAT THE MARKET WILL BE HELD BY A NUMBER OF INTERNATIONAL INSURANCE GROUPS 3OONER OR LATER THE REMAINING LOCAL BRANDS WILL BE BOUGHT BY %UROPEANS WHO HAVE NOT YET ENTERED THE 5KRAINIAN MARKET #LIENTS WILL BECOME MORE QUALITY ORIENTED 7HETHER THEY WANT IT OR NOT THE MAJORITY OF LARGE CORPORATIONS PURCHASE INSURANCE PRODUCTS !ND AS THE YEARS GO BY THEY DIS COVER THAT INSURANCE MAY BE BOTH A POWER FUL PROTECTION AND A TOTAL WASTE OF MONEY DEPENDING ON THE QUALITY OF THE PRODUCT ONE BUYS 3O IF YOU ARE SPENDING YOUR MONEY ANYWAY WHY NOT BUY QUALITY ) BELIEVE AND HOPE THAT ITlLL BE THE MAJOR TREND IN CORPO RATE INSURANCE WITHIN THE NEXT FEW YEARS
-EDICAL INSURANCE IS FAIRLY POPULAR AMONG %UROPEAN CORPORATE EMPLOYERS WHILE FEW LOCAL COMPANIES PROVIDE THEIR STAFF WITH THIS KIND OF A SOCIAL PACKAGE "UT IS IT REALLY A CONSIDERABLE ADVANTAGE FOR AN AVERAGE 5KRAINIAN OFFICE WORKER -OST LARGE 5KRAINIAN COMPANIES AVOID MEDICAL INSURANCE )T CERTAINLY IS EXPENSIVE 4HOSE WHO USUALLY PURCHASE IT ARE BRANCHES OF AN INTERNATIONAL ENTITY !ND WITH THEM MEDICAL INSURANCE IS NOT INTENDED TO BE AN ADDITIONAL ALLUREMENT )T IS RATHER A TYPICAL STANDARD %MPLOYEES OF INTERNATIONAL COM PANIES OFTEN TAKE THIS INSURANCE FOR GRANTED /R DO NOT REALLY CARE FOR IT BEING SATISFIED AS THEY ARE &OR WHEN A SEASONED AUDITOR CHOOSES BETWEEN m4HE "IG &OURn AND FOR EXAMPLE STATE SERVICE MANY PERSONAL PREFER ENCES WILL AFFECT HIS JUDGMENT BUT THE MEDI CAL INSURANCE WILL HARDLY BE THE MAJOR CATCH !ND OF COURSE AFTER THE GLOBAL CRISIS SHOOK THE 5KRAINIAN ECONOMY EMPLOYEES PAY MORE ATTENTION TO THE FUTURE SALARY RATHER THEN TO FUTURE JOB BENEFITS
)F YOU COULD MAKE THREE REFORMS TO YOUR 7HAT ) REALLY LIKE ABOUT THE SITUATION HOW INDUSTRY IN 5KRAINE WHAT WOULD THEY BE EVER IS THAT SOME COMPANIES START PURCHASING !ND WHY MEDICAL INSURANCE FOR THEIR EMPLOYEES NOT IN -Y BUSINESS IS INVESTMENT SO ) HAVE NO ORDER TO ATTRACT NEW CANDIDATES BUT TO TAKE DEFINITE mINDUSTRYn TO SPEAK OF 3PEAKING CARE OF THE CURRENT EMPLOYEES 4HEY MAY NOT ON BEHALF OF "RIT-ARK INSURANCE BROKERS THINK MUCH OF IT BUT IN CASE OF AN ACCIDENT )lLL MENTION THE INSURANCE SECTOR ! LOT IN IT MAY PROVE LIFE SAVING OR AT THE VERY LEAST INSURANCE INDUSTRY SHOULD BE CHANGED COST EFFECTIVE !ND ) WOULD RECOMMEND TO START WITH THE BASICS LAWS AND REGULATIONS 4HEY ARE OVER COMPLEX AND BUREAUCRATIC )T IS SOMETIMES IMPOSSIBLE TO FULFIL ALL REQUIREMENTS )T IS OFTEN ILLOGICAL AS WELL
(AVE YOU IN YOUR PROFESSIONAL ROLE ENCOUNTERED ANY MAJOR OBSTACLES OR BAR RIERS THAT HAVE MADE IT DIFFICULT TO CONDUCT BUSINESS IN 5KRAINE )F SO HOW DID YOU OVERCOME THEM
)NVESTORS ARE OFTEN CAUTIOUS ABOUT INVESTING IN 5KRAINE IN PART BECAUSE OF IRREGULARITIES IN THE LEGAL SYSTEM 7HAT ADVICE WOULD YOU GIVE TO COMPANIES WHO ARE THINKING OF ENTERING THE 5KRAINIAN MARKET
)TlS IN THE MENTALITY WHICH PROVED TO BE THE STRONGEST BARRIER
)lD RECOMMEND FINDING A LOCAL PARTNER ! BUY OUT A FRANCHISE OR A PARTNERSHIP p THEY ARE ONLY THE METHODS 4HE IDEA IS WHILE YOU MANAGE LARGE SCALE TASKS YOUR LOCAL PARTNER WILL BE PERFECT FOR SOLVING THE
9OU MAY HAVE GREAT BUSINESS WITH YOUR COUNTERPART EVEN WITHOUT SPEAKING THE SAME LANGUAGE OR WHEN HAVING DIFFERENT SKILLS "UT ITlLL NEVER BE A SUCCESS IF YOUR THOUGHTS RUN IN OPPOSITE DIRECTIONS 5KRAINIANS EMPLOYEES AND PARTNERS ARE VERY DIFFERENT FROM WHAT AN AVERAGE %UROPEAN BUSINESSMAN MAY EXPECT ) HAVE 5KRAINIAN ROOTS IN MY FAMILY SO MAYBE IT HELPED ME UNDERSTAND THE COUNTRY BETTER
2%')/.!,.EWS EBA Lviv launches open Ukrainian language classes for foreigners
O
n Thursday, 10th of March, 2011 EBA Western Ukrainian Branch held the first open class of the Ukrainian language launched in the framework of the Ukrainian language school for foreigners. The course including 24 language classes will last three months. The courses offer a great opportunity to get the first acquaintance and understanding of the Ukrainian language, network and master the basics of the official country language. For those, interested in joining the School, please contact EBA office in Lviv via Lviv@eba.com.ua.
EBA Donetsk Branch Board Elections
I
n February the EBA Donetsk Branch Board for 2011 was elected. On 28th of February, 2011, at the first meeting of the new Branch Board, Oleksiy Morshchagin was elected the Chairman of Donetsk Branch. Currently, the EBA Donetsk branch board includes: Oleksiy Morshchagin of the Tube and Wire Company, Arthur Shaymukhametov of TAS Insurance Group, Bogdan Yarmolenko of Erst&Young, Igor Golovan of Golovan and Partners Law Firm and Sheikh Imran Bashyr of GladPharm.
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*O 'PDVT The EBA advocates for dairy subsidies beneficial for the industry The EBA has consistently advocated for the system of subsidies to milk producers based on the quality and quantity of milk. Following the adoption of the Tax Code of Ukraine in the end of 2010 that abolished the system of subsidies through the automatic VAT reimbursements from dairy processing companies that has been in place for the last decade, the EBA Dairy Committee elaborated proposals as to further support milk producers targeting productivity and quality of milk. In the beginning of March, the Cabinet of Ministers adopted the Resolution which established fixed subsidies amounts to be paid to the milk producers for the delivered milk. According to the Cabinet of Ministers' Resolution No 181 of 2 March 2011 on the "Establishment of payment amounts for the state support of animal husbandry for 2011", subsidies payments to milk producers for the delivered milk are fixed at the level of UAH 0.3 for individuals and UAH 0.35 for agricultural enterprises (per 1 kg). Such payments will stimulate milk deliveries by individuals for its further processing which will in its turn promote the increase of quality and productivity of milk, improvement of the financial state of agricultural producers by means of their financial support as well as stabilization of purchasing prices of raw milk. General Director of Danone Ukraine s a committee we did not want to change the old system that was transparent and effective. But since it was voted as part of the new Tax Code we adapted to the new reality and were able to put on the table some proposals with the new subsidy system that would benefit the sector. Many of these proposals were adopted. Soon the EBA Dairy Committee will present its dairy program which, we hope, will also be adopted.
A
DARIO Marchetti
Director of Milkiland t is the responsibility of Government and the Food Industry in Ukraine to promote an effective agricultural sector. The dairy sector is one of the most important indicators of the health of the agricultural economy of a nation. As well as this, the importance of dairy products is recognised as one of the key contributors to the healthy diet of a nation. The support of the government for this sector of industry is essential for the sector not only to survive but to thrive. The previous subsidy system was quite effective. The new system fails to give support where it is needed, and is difficult to use from the part FREDRICK Aherne of the milk producer especially the individual farmer – imagine each babushka having to open a bank account. The EBA Dairy Committee’s proposals are based on market economics and should promote a basis for dairy sector development. We must continue to lobby to ensure the long term health of the milk supply sector. Failure of the dairy sector in Ukraine will result in further imbalance of trade with imports filling the place where Ukraine produced goods should be.
I
External Relationship Director, Shostka Bel Group Ukraine e as the EBA Dairy Committee supported the "old system" to ensure stable payments for milk producers in situation when milk production in Ukraine is decreasing from year to year. The new "per cow" system proposed in the tax code was not transparent and did not motivate specific producers to increase production for the industry. Our main criticism was about the limited support of population who are the key contributors in milk production. Series of joint consultations and discussions with government were initiated by the Committee to lobby the retention of the subsidies for NATALIA Fesyun population at the level of 30 kopeks per kg of milk produced. This request was included in the new order of donation payment adopted by the Cabinet of Ministers in March 2011. Now, agro farms will receive 35 kopecs per kg and population - 30 kopecs. It is critically important for the whole industry's success to make this support realistic and to ensure the proper financing of this fund to support milk producers.
W
General Manager, OJSC Zvenygorodka cheese processing plant, Groupe Soparind Bongrain he new system of milk subsidy is a rational compromise. I find it as one of the best among numerous options that were considered by the government during the preparation process since autumn last year until February this year. And, clearly, the common voice of main cheese and dairy producers, expressed by the EBA Dairy Committee, was crucially important in this process. The final version of the new milk subsidy fully reflects the position of the Committee. The key advantage of the new system is the fact ZBIGNIEW Marczak that it gives a chance to support milk production by individuals that still deliver around 80% of the global milk volume in Ukraine. Nevertheless, this is the only positive thing, I can say about it. Unfortunately the new mechanism of milk subsidy is pretty much unclear for its potential beneficiaries - milk producers. The procedure of getting the subsidy, especially by individuals, is complicated, creates additional bureaucracy and still brings a lot of uncertainties for the entire milk industry in Ukraine. Now, by the end of March, no one of our milk suppliers has actually received any milk subsidy so far. Consequently, milk prices are still high this year and, respectively, high consumer prices of cheeses (and dairy products) drive inflation and decrease consumption.
T
7E LOOK FORWARD TO YOUR FEEDBACK AT
PGGJDF!FCB DPN VB
4 Opinion
March 25, 2011
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Editorial
Justice at last? The criminal charges should have come nearly 11 years ago, but nevertheless the accusations against ex-President Leonid Kuchma in the Sept. 16, 2000 murder of journalist Georgiy Gongadze are welcome even at this late date. We fear, however, that justice may still not come from prosecutors’ belated allegations on March 24 that Kuchma set in motion the gruesome events that led to the kidnapping, beating, strangulation and beheading of the accomplished 31-year-old journalist. Gongadze’s only crime was daring to challenge a tyrant with his journalism. The case, from the outset, has been beset by incompetence, stonewalling and cover-ups – some of it likely directed by Kuchma and the former top officials of his inner circle, some of whom remain implicated in the murder. The Gongadze case alone demonstrates Ukraine’s ongoing need for an independent special prosecutor so that sensitive criminal investigations of this type are not left to the subservient political hacks who occupy posts at the General Prosecutor’s Office and throughout law enforcement. Despite all the attempts to throttle the investigation and deflect blame, evidence pointing to the truth did dribble out over time. Taken together, the facts add up to a compelling case against Kuchma, who deserves the presumption of innocence and his day in court to answer the allegations. Gongadze, founder of the Ukrainska Pravda news site, was trailed in the weeks before his death by men in cars whose license plates traced back to an Interior Ministry police unit. He wrote a letter to prosecutors complaining about the surveillance and asking for protection that never came. The interior minister at the time, Yuriy Kravchenko, was a close confidante of Kuchma. Four top officials – Kuchma, Kravchenko, former Security Service of Ukraine chief Leonid Derkach and former Kuchma chief of staff Volodymyr Lytvyn, now the speaker of parliament – were allegedly caught on tape discussing ways of silencing Gongadze. These were part of the tape recordings made public by ex-Kuchma bodyguard Mykola Melnychenko. On March 4, 2005, two gunshot wounds to the head killed Kravchenko on the day he was supposed to give testimony in the Gongadze case. The official ruling of suicide is suspect, so is a reported suicide note in which Kravchenko says he is victim of intrigues by Kuchma. Three years later, in 2008, three Interior Ministry police officers were convicted of being among the four men who kidnapped Gongadze. The fourth, former Interior Ministry General Oleksiy Pukach, went into hiding years earlier before authorities caught up with him in rural Zhytomyr Oblast on July 21, 2009. Held in confinement for nearly two years, police have still not made public his testimony and alleged confession. But one of his former lawyers and leaked portions of Pukach’s testimony clearly implicate Kuchma and Lytvyn in Gongadze’s murder. The charges against Kuchma give ample reason to suspect that authorities are just sending out another smokescreen to placate the public. Instead of being charged with murder, Kuchma is charged with “exceeding his authority” in giving orders to the Interior Ministry that led to Gongadze’s death. The crime carries a 10-year statute of limitations that may have expired, casting doubt about whether Kuchma would face any punishment if convicted. The ex-president is simply being charged with the wrong crime. Murder is the only charge that fits if Kuchma gave the order – and murder charges carry no statute of limitations. If Kuchma is convicted of a crime that carries no punishment, this would be a travesty. The public should not get sidetracked on diversionary theories and intrigues. Two of the most frequent absurdities that have popped up over the years are: Kuchma is being set up for the murder by enemies or Kuchma only wanted police to scare Gongadze. Both are utter nonsense when taking into account the cover-up of the case that took place under Kuchma’s authoritarian rule. A president with nothing to hide hides nothing, while Kuchma did everything to throw people off the trail. As for the bogus argument that Kuchma only wanted police to scare Gongadze, it is akin to one bank robber denying responsibility for an accomplice’s shooting of the bank teller. In the eyes of the law, the robber who didn’t shoot is an accomplice to the murder. Kuchma, even if he ordered officers to just scare Gongadze, is still responsible for the resulting murder. The authorities may not even realize what they have unleashed in society. Fresh questions will be raised about their timing and motives. The Melnychenko tapes and the crimes they allegedly caught Kuchma committing will receive renewed credibility. One clear test of the authorities’ commitment to justice is how long it takes to bring Kuchma to trial. Most of the evidence seemingly has been known for nearly 11 years. This means that weeks should not slip into months before Kuchma faces a public trial. If the case drags on, the public will know for sure what they already suspect: that the March 24 charges are just the latest phase of the Gongadze cover-up.
Published by Public Media LLC Jim Phillipoff, Chief Executive Officer Brian Bonner, Chief Editor Deputy Chief Editors: Katya Gorchinskaya, Roman Olearchyk Editors: Alexey Bondarev, Valeriya Kolisnyk, James Marson, Yuliya Popova Staff Writers: Tetyana Boychenko, Peter Byrne, Oksana Faryna, Natalia A. Feduschak, Oksana Grytsenko, Kateryna Grushenko, Nataliya Horban, Vlad Lavrov, Olesia Oleshko, Yura Onyshkiv, Kateryna Panova, Mark Rachkevych, Yuliya Raskevich Nataliya Solovonyuk, Maria Shamota, Irina Sandul, Svitlana Tuchynska Photographer: Joseph Sywenkyj. Photo Editors: Yaroslav Debelyi, Alex Furman Chief Designer: Vladyslav Zakharenko. Designer: Angela Palchevskaya Marketing: Iuliia Panchuk Web Project: Nikolay Polovinkin, Yuri Voronkov, Maksym Semenchuk Sales department: Yuriy Timonin, Maria Kozachenko, Elena Symonenko, Sergiy Volobayev Subscription Manager: Nataliia Protasova Newsroom Manager: Svitlana Kolesnykova, Office Manager: Anastasia Forina
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Hey, Leonid Danylovich, here’s some new tapes to listen to while you’re serving your sentence!
NEWS ITEM: After more than a decade of stonewalling and cover-ups, prosecutors unexpectedly dropped a bombshell on March 24: Ex-President Leonid Kuchma is charged with "exceeding authority" in giving orders to the Interior Ministry that resulted in the Sept. 16, 2000 murder of journalist Georgiy Gongadze. Many criticized the lack of murder charges in favor of a lesser crime for which a 10-year statute of limitations exists. Tapes recorded by ex-Kuchma presidential bodyguard Mykola Melnychenko allegedly implicate the former president and his top advisers in attempts to silence the 31-year-old crusading journalist. Take care of him,” Kuchma is heard telling subordinates on June 12,2000 in one of the taped conversations. Kuchma has consistenly denied any involvement.
‘Directed chaos’ part of attack on real nationalists? TA RA S K UZ IO
On Dec. 28, 2010, a group of young Ukrainian nationalists posted a video on the Internet claiming credit for the beheading of a monument to Josef Stalin erected in May by the Communist Party in Zaporizhya. Three days later, the statue was blown up. On the same evening, Molotov cocktails were thrown at the Party of Regions offices in Kyiv in an alleged attempt at an arson attack. A previously unknown First of January Movement claimed credit for the explosion in “honor of the 102nd anniversary of [Ukrainian nationalist leader] Stepan Bandera’s birth [in 1909].” The claim was suspect for three reasons. First, members of a real nationalist group, Tryzub, have denied involvement in the blowing up of Stalin. It would be illogical for them to behead the statue and then return to blow it up. Second, a 102nd year is not a standard anniversary to celebrate. Third, the alleged First of January Movement stated it was the first of planned attacks on officials who “repress Ukrainian patriots;” they also threatened the “destruction of Zionists and synagogues.” The First of January Movement brought up two standard Soviet bogeymen: Bandera and nationalist anti-Semitism. On Jan. 14, Interior Minister Anatoliy Mohyliov warned that the opposition was planning bloodshed during the Jan.
22 anniversary of Ukrainian independence and national Unity Day. Former Minister of Defense Anatoliy Grytsenko described the statement as aimed at spreading fear. Six days later, two bombs exploded in the Donetsk town of Makiyivka. A note left at one of the sites stated: “We are fed up with this government. We want four million euros. There are bombs planted in other buildings in the town.” In October of last year, three bombs went off in Kirovohrad ahead of a planned visit by President Viktor Yanukovych. This is all very suspicious, and I dare to say that it raises suspicions that “directed chaos” is being used by the authorities to undermine political opposition. The public face of strength and power is also undermined by the Yanukovych administration’s evident paranoia about a possible second Orange Revolution and his personal paranoia. The head of Yanukovych’s bodyguards is a Russian citizen because he does not trust the Security Service of Ukraine and his personal bodyguard retinue is double the number that former presidents used. The president’s paranoia is played upon by Yanukovych’s close inner circle and explains the numerous pre-emptive “prophylactic” talks the SBU has undertaken with journalists, academics and politicians. The most intriguing case is the Stalin monument, which was first qualified as “hooliganism” when the charges were made against its beheading, an act which Tryzub (Trident) nationalists have always taken credit for. Three days after the beheading, the statue was blown up. Three clues give rise to my suspicions of the authorities’ involvement in the explosion. The first is that the blast enabled them to change criminal charges from “hooliganism” to the more serious charge of “terrorism,” which carries a greater sentence. Æ17
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March 25, 2011
Libel laws harmful to thoughtful journalism
Doing our job But as journalists we feel we are doing our job. We have performed the necessary due diligence and are prepared to face the court. We can prove that our story is accurate, such as the one involving a businessman who the police 10 years ago labeled a “mobster” or a company that boasts of its impeccable reputation but has been accused of being corrupt and having links to organized crime. Yet when we try to double-check our information—to prove that our publication is safe in case of possible litigation—by filing requests with the police and asking them to reconfirm statements they made just a year ago or verify the contents of the document they leaked to us, our jobs become very, very difficult. In the absence of a better law regarding access to public information, the authorities have 30 days to respond, which could be their refusal to give us any information. If we ask for anything related to criminal cases launched by a previous government that could compromise people now in power, the system works impeccably—with silence. A law enforcement officer explained to me how his colleagues handle undesirable information requests: “They will answer that such a criminal case never existed, and before saying so will destroy any traces of it.” The prospect of jeopardizing one’s publication thus becomes more real. But we still try to do our jobs properly. If we miraculously find a former police officer who is ready to testify that the documents we gathered are real, we will write a pleasant nonaccusatory letter to the subject of our article, such as a former mobster who is now a wealthy businessman and major advertiser, asking him to share information about his rough background and tell us how he was able to overcome all the difficulties and become so successful. We give him more than enough time to respond. He doesn’t, and then we write our story, sticking to the facts.
VOX populi WITH KATERYNA OSADCHENKO
What do you think of prosecutors’ declaration on March 22 that ex-President Leonid Kuchma is a suspect in the Sept. 16, 2000, murder of journalist Georgiy Gongadze? Oleh Trepovsky, theatre actor “After all these years, I lost track of this case and am convinced that there will always be a lack of evidence. It may be a hot topic for youngsters, but for older people, it becomes more obvious that politicians and common people share different worlds.”
V L A D L AV R OV
Not long ago I spoke at a NATO-sponsored event where representatives of Ukraine’s law enforcement and security and military forces listened to presentations by journalists who have investigated corruption. Speaking as a reporter who has worked on many local and cross-border investigations, I discussed a story I did in 2007 about a controversial investment project with cross-border links to organized crime. This project would have provided billions of dollars to the Ukrainians involved with it, but it did not happen, in part due to my investigative reporting. In the question and answer session, I was amazed when a man in the audience asked if I realized that my work on that story had deprived Ukraine of $25 billion. In response, I asked him if he was suggesting that Ukraine should stop fighting organized crime and money laundering. He responded with words clearly chosen to please the organizers of this event, but his question accurately reflects the prevailing attitude toward investigative journalism in Ukraine. In a country deeply divided politically and with strong ties between the powerful players in business and politics, any investigation that involves a member of the ruling elite (a major businessman or political leader) is viewed as being politically motivated and is assumed to be funded by political opponents. Or, in the most extreme cases, the journalist is presumed to be working to undermine the state’s international image. Things become far worse when the investigation focuses on major oligarchs or their companies. Then the threat of a lawsuit arises. Given the recent financial crisis, which downsized the print advertising market in Ukraine by almost a third, even publications that remain financially stable are reluctant to irritate the wealthiest people or risk being sued by them. In this climate of financial uncertainty, publishers and editors-in-chief will ask reporters about the damage that a particular investigative story might cause. Typical of questions being asked of investigative journalists today is this one: “Do you realize that your article might cost people their jobs?” Hearing this makes us feel like a modern-day Herostratus, accused of being determined to destroy our publications for the sake of our investigative egos.
Opinion 5
Members of Article 19, a London-based group that defends free speech, demonstrated on Feb. 24 in support of the Kyiv Post. The newspaper was sued for libel by Ukrainian billionaire Dmytro Firtash, but a judge dismissed the case. (Courtesy)
Æ If we decide to pursue the story, they [lawyers] guarantee a lawsuit will be filed in London, the libel capital of the world, where the burden of proof is on the defendant — the journalist and his newspaper. But when the story has moved through all of the necessary four edits, the wealthy businessman finally responds. Only, instead of speaking with him, we get to talk to his London- or Washington-based lawyers who list all of the Ukrainian and European publications that apologized or lost in court to their client for making very similar inquiries into his past. If we decide to pursue the story, they guarantee that a lawsuit will be filed in London, the libel capital of the world, where the burden of proof is on the defendant—the journalist and his newspaper. In 90 percent of these cases, the defendants lose. As the result, they have to pay the damages and the plaintiff’s legal costs that start at $100,000. At this point, it’s no longer about due diligence or getting our sources right. Our country’s richest businessman, Rinat Akhmetov, prevailed in libel cases filed in London against two Ukrainian publications; the Kyiv Post, where I work now, had to publish an apology while the other publication paid a fine of $77,500. Just the prospect of becoming the next victim of such a lawsuit has a profound effect on media owners. As a result, no matter how well we did our investigative reporting, whenever the specter of a London courtroom is involved, the owner is likely to step back from publishing the story. It doesn’t help that most journalists’ contracts in Ukraine contain a clause requiring employees to indemnify the newspapers against libel and slander lawsuits resulting from their work. Having to defend oneself in London, where lawyers’ fees can average $750 an hour, can sober up anyone. Citizens of Kozyn, Ukraine, speak with a representative of the federal government in 2004 during a dispute over control of a valuable piece of land.
Removing libel as an obstacle As a full-time journalist and editor in Ukraine since 2004, I’ve experienced all of this. In one of my first stories, I reported about a land deal in Kozyn, a small suburb of Kyiv Ukraine’s capital. The local council refused to comply with a federal request to hand over an extremely valuable piece of property. The council was defending the rights of local residents. One day the riot police simply stormed the village in
an attempt to confiscate the land—or, in this case, the documents required to seize control of it—from the local council. I was the only reporter on the scene when the police arrived. I hid in a resident’s home overlooking the council building that police had taken over so I could safely report on the incident. I remember being concerned about getting out safely since the police had blocked all of the roads from the village. Yet I would rather face the danger of being in that village under those circumstances than endure a routine conversation with foreign libel lawyers. As dangerous as that situation was for me, the ways I had to deal with it seemed more transparent and predictable. As the result of lawsuits being threatened and filed, I joined the Organized Crime and Corruption Reporting Project (OCCRP) established by friends of mine who are also investigative reporters working in Eastern Europe. Through a grant, OCCRP obtained libel insurance, but qualifying for it requires proving to lawyers that our reporting and documentation is solid; otherwise, the lawyers who work for OCCRP will not approve the story. Using this method is how I was able to publish several stories that otherwise I would not have been able to get to readers in Ukraine. After their initial publication abroad, these articles could appear in Ukrainian media as reprints of foreign news stories. This method is much safer for the publishers. My plan is to launch a similar investigative journalism project in Ukraine—and what I will do first is to use any funding we receive to make libel insurance available to local journalists. For now, a few of my Ukrainian colleagues joke that I have invented “offshore journalism.” I know they are actually happy for me. They understand that this is just a way to fight self-censorship. Vlad Lavrov is a staff writer for the Kyiv Post. He has taken part in international investigative projects, including the award-winning “Tobacco Underground: The Booming Global Trade in Smuggled Cigarettes." This article was written for the Nieman Foundation For Journalism at Harvard University. It can be found at http://www.nieman.harvard.edu/reports/article/102584/Libel-Laws-Pose-Obstacles-to-UkrainesInvestigative-Journalists.aspx.
VolodymyrBogdan Kostvo, student “I consider it a glimpse into the distant past. It’s like taking a look back at The Nuremberg Trials, digging out and trying to find new evidence against Nazi Germany. If Kuchma would have been accused when it all started, then it could have led to effective legal action.” Oleh Shefrovsky, educationalist “I think that renewal of the investigation is generally a positive sign. From the beginning, I considered Kuchma to be involved in this case and think that there is enough evidence against him.” Serhiy Vorny, military man “I think it will come to nothing. Since it is such a big case, it should have been solved years ago. A man’s tragedy was turned into a long-lasting political show with change of actors.” Valeriya Shevchenko, student “I am not sure that there is really enough evidence to charge Kuchma with murder or to prove that he is involved. I think that this is some sort of political technology to distract the public eye from more important issues and hot topics.”
6 Business/News
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March 25, 2011
Judge murdered in his own home BY S V I T L A N A T U C H YN S KA TUCHYNSKA@KYIVPOST.COM
A Kyiv judge who heard controversial cases involving allegedly illegal construction was slain in his own home on March 21. A suspect has been arrested and two more were being sought. The assassination of 42-year-old Serhiy Zubkov, praised for the integrity of his rulings, was obviously planned in advance, police said. A Kyiv man was arrested the day after the murder and is being questioned. “He was affected by the ruling of judge Zubkov when he was evicted from his apartment. We suspect revenge was the motive of the murder,� said Interior Minister Anatoliy Mohylyov at a March 24 press conference. Police are also looking for two accomplices. Zubkov was the target of an angry open letter addressed to him and published online just days before the tragedy. In the letter, a Kyivan accused Zubkov of evicting his family from their apartment as part of a case that the
judge heard. In the case, Zubkov honored a Holland company’s claim to the apartment. The letter writer accused Zubkov of “lawlessness.� However, Mohylyov wouldn’t say whether the author of the letter and the arrested suspect are the same person. The slaying of a judge is a gruesome setback for Ukraine’s halting transition, now two decades in the making, from lawless former Soviet republic to modern, law-abiding democracy. If judges cannot be protected, then confidence in the judicial system could further be eroded. The killers fooled a concierge to gain access to the house on 13 Holosiivska St., where Zubkov lived with his wife and daughter. “Two men, one of them in a wheelchair, entered around 6 p.m.,� said a building concierge, recounting what a colleague on duty told her. “The men entered the elevator and minutes later came down. They were both running and the wheelchair was nowhere to be seen.� According to the concierge, one of
ÆOn the move DMITRIY KISILEVSKIY was appointed head of corporate affairs at Interpipe, the steel pipe and railway wheel producer owned by Ukrainian billionaire Victor Pinchuk. Kisilevskiy will be responsible for the development and implementation of Interpipe’s public relations strategy and communications protocol, the coordination of external and internal communications and the promotion of the company’s brand in strategic regions. Before joining Interpipe, Kisilevskiy was a group account director at PR agency Noblet Media CIS. During his work at the agency, Dmitriy worked on more than 100 successful projects for companies in sectors as industry, construction, healthcare, finance and FMCG. Kisilevskiy studied sociology at the KPI National Technical University of Ukraine and also has a master’s in administrative management and a qualification certificate from the Chartered Institute of Public Relations in London.
Judge Serhiy Zubkov
the men pointed a gun at her colleague on duty, who suffered a heart attack and was hospitalized. Police say the concierge and an elevator repair worker were the only people who saw the killers. Some neighbors of Zubkov, who declined to
give their names because they feared for their safety, told the Kyiv Post that Zubkov was recently complaining about threats because of his work. Some colleagues of Zubkov, writing on a website shevchenkovskiy-sud.jurportal.org, wrote that they were aware of threats to the judge and that he had many enemies among those “harmed by his decisions in court.� According to Segodnya newspaper, which spoke to Zubkov’s colleagues, he was set to be transferred to the Appellate Commercial Court. According to an unnamed source of the Internet news site Censor.net, the High Council of Justice was about to consider Zubkov’s dismissal on March 24 due to “many complaints.� Zubkov made the news on Nov. 22 when he ruled on a controversial residential construction on Honchara Street. The construction of a nine-story building there is considered by experts and the United Nations Educational, Science and Cultural Organization to be harmful to the 11th century St. Sophia Cathedral nearby.
In October 2009, UNESCO sought a halt to the construction and the Kyiv city council agreed. Zubkov ruled that the construction should be stopped. However, the construction later resumed. On Jan. 15, Zubkov also heard a case on another controversial housing project involving the grounds of Zhovtneva Hospital. According to Zubkov’s ruling, the construction was harmful to nearby buildings. “At court we were told that Zubkov is one of their best judges,� said Iryna Nikiforova, an anti-construction activist. “He was a professional. People respected him.� Ihor Lutsenko, an activist of the Save Old Kyiv organization, said that in both the Honchara Street and Zhovtneva Hospital cases, Zubkov was honest despite probably being offered money by different sides in cases he heard. "Zubkov declined and now he is dead," Lutsenko said. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.com
Send On the Move news to otm@kyivpost.com or contact Kateryna Panova and Oksana Faryna at 234-6500. It should include a photograph of the individual who has recently been appointed to a new position, a description of their duties and responsibilities, prior experience as well as education. Note: The Kyiv Post does not charge for publishing these notices or any news material.
OLEG POHOTSKY was
PETER WORSWICK has
appointed independent board director at Avangard, a fastgrowing Ukrainian agribusiness that is traded on the London Stock Exchange. Pohotsky is a corporate finance and investment management professional with over 40 years of experience in both industry and the financial markets. Presently, he is the founding partner of Right Bank Partners, a member of the board of advisers of Kaufman & Co., a Boston-based investment banking firm, and serves as senior adviser to Governance Metrics International. Prior to that, he worked as a senior executive at Bear Stearns, First Albany Corporation and Idanta Partners, a Texas-based venture capital affiliate of Bass Brothers. Pohotsky holds a master of business administration from Harvard University. He also studied at University of Miami and Clarkson University.
been appointed business development director at Willard, a Kyiv-headquartered communications company that also offers services in Russia, Turkey and other countries. He will be responsible for business development initiatives and managing key agency relationships. Before joining Willard, Worswick was a business development manager at Pulse, a Kyivbased full service marketing agency. Worswick has a degree in business from the University of Bolton, previously Bolton Institute of Technology, in England.
ALEXEI DMITRIEV joined Horizon Capital, a regional private equity fund manager, as an Investment Director in the Financial Institutions Group. Dmitriev has extensive experience with financial institutions. Before joining Horizon Capital, Dmitriev worked for The Boston Consulting Group and Ernst and Young, both global leaders in providing business consulting services. Dmitriev received his Bachelor and Master of Arts degrees from Higher School of Economics in Moscow.
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Business 7
March 25, 2011 Advertisement
State scares off investors in promising agricultural sector BY O K S A N A G RY T SEN KO GRYTSENKO@KYIVPOST.COM
For years Ukraine’s agriculture sector has had investors salivating over its potential. With food prices hitting records this year and likely to continue rising, the country’s fertile chornozem, or black earth, put it in a strong position to rake in huge profits for farmers, traders and the state budget. But business representatives and analysts say the millions of dollars of investment that are needed to upgrade Ukraine’s aged farming infrastructure are being scared off by increased state regulation, particularly in the grain export market. “The world needs for Ukraine to step up to the table,” said Morgan Williams, president of U.S.-Ukraine Business Council, a business lobby. “But the ‘Great Grain Robbery’ is about to kill the goose that could have laid a golden egg.” After imposing export quotas on grain last year, which business organizations said were handed out nontransparently, the Agriculture Ministry and some lawmakers are pushing for a law to be passed that critics say would hand a single company – partly owned by the state – a virtual monopoly over grain export. The move would effectively push international grain traders out of the country. There is also concern that foreigners will not be able to buy land when the moratorium on land sales is lifted,
which could come in the next two years, according to top government officials. What Williams calls the “Great Grain Robbery” began in October last year when the government introduced export limits on grain, citing food security after a summer heat-wave hit the harvest. The two allocations of quotas to export grain – on Nov. 12 and on Jan. 11 – were criticized by grain traders and the American Chamber of Commerce in Ukraine as unclear and unfair. They said that some companies failed to receive allocations after the Agriculture Ministry dragged its heels on approving applications. “The process of quota allocation was corrupt and nontransparent. Lots of holders of grain didn’t get the quotas,” Williams said. Grain export leaders including Cargill, Toepfer, Louis Dreyfus, Soufflet Group and Nibulon were not able to receive quotas in January, while the mysterious partly state- and partly private-owned company Khlib Investbud obtained almost one half of quotas for wheat export and one third of quotas on corn export. Prime Minister Mykola Azarov said he didn’t know anything about the company. Agriculture Minister Mykola Prysyazhnyuk said he doesn’t know who the private owners are. Both denials are greeted skeptically. Meanwhile, one of Ukraine’s largest grain traders, Nibulon, has said it
suffered big losses after not receiving quotas and has taken the government to court. “We stand against the nontransparent actions of the state,” Oleksiy Vadatursky, general director of the company, said. He said the company doesn’t expect any compensation but wants to prevent unjust allocations in the future. But, grain traders say, worse has followed. Two laws have been drafted by lawmakers since the beginning of 2011, both of which appear to be aimed at squeezing traders off the market. The first draft law, No. 8053, proposes to push private grain traders completely out of the export business, but has been stalled by parliament’s agriculture committee. A second law, No. 8163, has been drawn up, allowing farmers to export whatever grain they produce and sanctioning the creation of a “state agent” partly owned by the state and partly by private investors, who would stand to make a huge profit through the virtual monopoly. Grain traders would be allowed to export grain under this draft law, but only if they pay 50 percent of the cost of the grain in advance, before it’s planted. Traders say this effectively pushes them out of the market, as they will not pay for a crop that does not yet exist and given the barriers to export that already exist. Ukraine’s Agriculture Æ15
Consumer confidence slips as Ukrainian pessimism deepens BY M A R K R AC H K E VYC H RACHKEVYCH@KYIVPOST.COM
Sinking public trust in government led to the third straight decline in the consumer confidence index in February, according to market researcher GfK Ukraine’s monthly survey of households. Although the size of Ukraine’s economy continues to grow with gross domestic product rising by 4.5 percent in 2010, the index sunk by 7 percentage points because “Ukrainians expect things to get worse,” the March 17 GfK Ukraine report said. “The data shows people are increasingly feeling they don’t have much to live on,” said Iryna Bekeshkina, acting director of Democratic Initiatives, a policy center in Kyiv. “Rising prices on household utilities and the impending April 1 date when the new tax code comes into force as well as other factors combined could trigger public protests.” Overall, the public’s economic expectations for the next five years, one of five indices that make up the index, lost 6 percentage points in February and sunk by a whopping 14 percentage points in President Viktor Yanukovych’s constituent base in eastern regions of Ukraine, GfK Ukraine reported. “Consequently, [the decrease in long term economic expectations] led to the decline in the propensity to consume, which might slow down the growth of domestic demand,” said Hlib Vyshlinsky, GfK Ukraine custom research director. “Sharp decline of the trust in the government affected consumer mood decline, despite economic recovery.”
Consumer Confidence Index in Ukraine
Investments: Currency control issues to consider
T
he second half of 2010 was marked by adoption of the Law of Ukraine No. 6122 purporting to ease currency control restrictions imposed as a response to the financial crisis in 2009, thereby increasing the country's attractiveness for foreign capital. The beginning of this year proved to be a continuation of the existing trend - on 22 March 2011 the NBU Resolution No. 572 "On adjustment of certain issues of foreign currency transactions" took effect. This resolution not only brings certain regulatory acts in IGOR compliance with the said law but also introduces some KRASOVSKIY novelties simplifying, to a certain extent, the procedure Associate, B&F practice for making of investments and remittance of profits of Gide Loyrette Nouel by foreign investors. Although these legislative acts indicate that Ukraine finally took the course towards liberalisation of the foreign exchange market, existing currency control rules still remain an obstacle for foreign investors and should be considered thoroughly while doing business in Ukraine. Igor Krasovskiy, associate of the international law firm Gide Loyrette Nouel, will briefly cover the currency control aspects of investments answering below questions. What are the ways for foreign investor to invest into Ukraine? Ukrainian law allows a number of methods of making foreign investments, such as, participation in companies, acquisition of Ukrainian shares, incorporation of subsidiaries or branches, acquisition of movable or immovable property, acquisition of other proprietary rights, business activity on the basis of production sharing agreements; any other methods of making foreign investments not expressly prohibited by law, including by way of entering into in joint ventures with Ukrainian entities. Now foreign investments may be introduced directly from foreign bank accounts to the resident's account in hard currency or through special investment accounts opened with Ukrainian banks in the national currency of Ukraine. State registration of foreign investments in Ukraine is optional, however it does give foreign investors additional privileges and guarantees in comparison with those who chose not to register their investment with a respective governmental authority. Therefore, in case of repatriation of a foreign investment a respective certificate would be of great value. Are there any restrictions on divestment of Ukrainian holdings and/or remittance of dividends or other incomes by foreign investors abroad? Under the general rule no licenses or other authorisations are required for a foreign investor in order to divest its Ukrainian holdings or repatriate dividends or other profits. However, in order to make cross-border payments a predetermined list of documents should be submitted to the servicing bank in Ukraine which includes documents confirming ownership title to the equity interest, a bank statement confirming crediting of foreign currency onto the resident's bank account, etc. In view of recent changes to currency control regulations, when remitting dividends, there is now no need to present a bank with a statement confirming that the foreign currency funds have previously been credited onto a bank account in Ukraine. In addition, if the investment in Ukraine has been held by the investor for more than five years or if the certificate of state registration of the investment is available, any other profits derived from such investment may also be transferred outside of Ukraine without such a bank statement being required. In all other cases a bank statement should be presented. Another good news is that no tax certificate, confirming payment of the withholding tax by the foreign investor, is now required in order to proceed with repatriation of the investment.
It should be mentioned that the sale of shares in Ukrainian companies generally requires a share valuation report from an independent certified expert. However, such a report is not required if the shares are listed on the Ukrainian stock exchange market.
120 110 100
What is the most suitable way for foreign investor to finance ongoing activities of its subsidiary in Ukraine?
90 80 70 60 50 40 2007 2008 2009 Source: GfK Ukraine, International Centre for Policy Studies
Consumer confidence, which measures Ukrainians’ attitudes about current and future economic conditions, is considered more of a political, rather than an economic, barometer in Ukraine. Consumer spending in Ukraine drives 60-65 percent of economic growth, according to investment bank Astrum. “We associate this worsening in consumer sentiment mostly with increased utility prices and with the negative impact of news and gossip about price rises and deficit of some socially important goods,” a March 18 Astrum briefing said. Estimates show that private consumption was 62 percent of gross domestic product in 2010, or $84 billion. Private consumption has been as low as 54 percent of gross domestic product in 2004, during the tumultuous presidential election that led to massive street protests because of vote rigging. In the U.S. for instance, over 70 percent of what is produced – about $10
#64*/&44"%7*4&3
2010
2011
trillion – is consumed by Americans. Still, the index decline has reached year-end 2009 levels, when the nation was still reeling from the global financial meltdown. Bekeshkina said that declining consumer confidence could impact small businesses that provide petty goods and services. “Since there are few good paying jobs, people create jobs for themselves,” Bekeshkina said of micro-business owners. “But their bottom line gets hit as consumers spend less.” Consumer confidence took the biggest nosedive in cities with populations of more than 500,000 people – by 25.4 percent. Economic expectations and propensity to make large purchases significantly decreased among big city residents. GfK Ukraine’s consumer confidence index is based on a monthly survey of 1,000 households and is a composite of five separate indices. Kyiv Post staff writer Mark Rachkevych can be reached at rachkevych@kyivpost. com.
Based on our practice, intercompany loans prove to be the most suitable option for a foreign parent company to finance ongoing activities of its subsidiary in terms of cost efficiency, procedure and time. Ukrainian law provides the parties to the loan agreement with enough comfort and flexibility in defining the terms and conditions of the loan. It is also worth noting that Ukrainian law does not prescribe any limitations as to the amount or the duration of the loan. However, the interest rate under a foreign loan must not exceed the maximum interest rate set by the NBU. In addition, the loan agreement will take effect only upon its registration with the NBU and no disbursements under the loan can be made before this formality has been completed. In practice, the registration takes no longer than 7 business days. Alternatively, the subsidiary can be financed through a monetary contribution into the charter capital. This type of financing does not require significant expenses or a lot of time, and is easy to implement in practice, especially, if the subsidiary is incorporated in the form of a limited liability company. What is your outlook on currency control rules in Ukraine for 2011? The foreign business community has a strong feeling that leading Ukrainian officials have finally realised that the existing currency control restrictions proved to be ineffective and failed to achieve their desired effect. Therefore, we expect that a strong deregulation trend aimed at reducing the number of currency control restrictions is highly likely to take hold in 2011. Particularly, we hope that a vitally important draft law on currency control system in Ukraine which was passed in the first reading by the Parliament will be fine-tuned and adopted. There are also several other important draft laws, including the draft law on derivatives and escrow accounts, which are expected to be considered and, hopefully, adopted by the Parliament by the end of this year.
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
Inside HR
Editor’s Note: The Kyiv Post is launching a new business section feature called Inside Human Resources, a guide to employment. To contribute articles, contact chief editor Brian Bonner at bonner@kyivpost.com.
KPMG’s Richardson talks about how to land a job offer you the raise in the first place. A smart employer, in my opinion, would catch this and look after their best people. Identify who they are and look after them.
BY V L A D L AV R OV LAVROV@KYIVPOST.COM
With the employment market still not fully recovered from the financial crisis, few companies keep recruiting new staff more regularly than firms that provide auditing and tax consulting services. After all, as long as Ukraine is considered one of the toughest places to pay taxes in the world and the new tax code makes the lives of businesses no easier, demand for such services is only to keep growing. That means lots of work for Craig Richardson, head of the tax and legal department at KPMG, one of the “Big Four” accounting firms in the world. Richardson said the firm is planning to recruit at least 20 new employees, all of which he will interview personally. In an interview with the Kyiv Post, South Africa-native Richardson shared tips about what he expects to see on a CV of a job candidate and what to avoid. Kyiv Post: Let’s put things straight, how can you get a job at KPMG? Craig Richardson: You need to have the skills, background and also you need to demonstrate the enthusiasm for your subject and demonstrate professionalism, first of all in how you dress. If you dress inappropriately that either means you don’t realize that you a being interviewed by a partner, or you don’t care. But most importantly during an interview the thing I really want to see is a sparkle in the eyes. I like to choose people with the attitude that will help the business. KP: What about the CV? What are the key phrases you are looking for? CR: The key words for me would be your achievements, what you have achieved in your career. So often, you find that people don’t include that information on their CVs. They list what they’ve done and what they do, emphasizing their experiences instead
www.kyivpost.com
March 25, 2011
Craig Richardson
of achievements. A detailed resume is really very important in this field. The other thing that I am paying attention to is changing jobs too often. KP: Do gaps between jobs on a person’s CV make you suspicious? CR: This is not an issue. I will ask why and listen. But with the financial crisis, people do have a good reason not to have a job. KP: Do you ask about salary expectations? How should a candidate handle this issue? CR: I ask two questions: what is your current salary and what are your expectations if we offer you a position here. I am expecting from a candidate honesty and reality. If you are earning this much at your current job and expect a 20 or 30 percent increase there needs to be a reason why. I would follow the rationale behind the answer. This is very important to me. But interestingly after the crisis, some companies are losing a lot of people, as the marketability of these employees is higher. So, as they decide to leave, their current employers try to retain them, offering them more. The big debate is what your reaction should be when your company wants to increase you salary as you resign. It’s a difficult issue, but perhaps you might ask that if you were worth it why you employer didn’t
KP: If you offer a person a job, how do you expect he or she leaves the present employer? CR: While there is a statutory two weeks in Ukraine, we look to see their level of professionalism in how they wish to leave their present company. If they say, I need more than two weeks to finish an important project, we really prefer such people. It shows their commitment and responsibility and tells what we could expect from them. KP: But if your employee decides to resign and goes to your direct competitor, how would you react? CR: It does happen. But it’s rare. Even though I work very hard on staff retention and my attrition rates are less than 10 percent, if they decide to leave, I pretty much let them go. KP: But what happens if it’s you deciding to fire a person. How do you handle this conversation? CR: With care, I would say. I have been able to convince the people I fired that they are in a wrong profession, and helped them find an alternative. Identify for them what their skills are and why there is a mismatch with what a person is doing at our company. In one case I encouraged one person to understand than he was more a musician than he was an accountant. So he went off and became a musician. Bust most difficult case happened in Russia when I had to fire an elderly person during the crisis. And next day he brought me a bottle of expensive red wine. So I was completely taken by surprise, when he came to me and thanked for handling a difficult job in a humane way. Kyiv Post staff writer Vlad Lavrov can be reached at lavrov@kyivpost.com
How to succeed in job interviews (one tip: don’t show up drunk) BY K ATYA G R U SH E N KO GRUSHENKO@KYIVPOST.COM
Job interviews can be a life-changing event. During the process, many nuances can make the difference between securing a bright new future or walking away emptyhanded. While being dressed appropriately and having a well-written resume are musts, the Kyiv Post asked Alexandre De Raemaeker, a Belgian who owns Diamond Recruiters agency in Ukraine, about his worst and best interviews in order to give our readers a glimpse into the hiring process. Some of the experiences might sound crazy, but they are all true, said Raemaeker, a seven-year human resources veteran who conducts at least 35 interviews per week Starting with the bloopers, these five job interview errors topped Alexandre De Raemaeker Raemaeker’s list: 1. One candidate arrived drunk at an interview for the position of sales manager of construction materials. Another candidate added brandy to his coffee during the interview. 2. A potential employee admitted a bogus resume, failed some tests and then offered a 30 percent kickback on the salary during the first year of employment in exchange for fooling the employer. 3. Another candidate refused to answer any interview question, demanding disclosure of the proposed salary first. 4. One job hopeful had his mobile phone on and it started playing a sexist Russian rap song in the middle of the interview. 5. A candidate for an information-technology position threatened to hack into the company database and crash it if we didn’t give him some money. On the bright side, these are the five most impressive interviewing moments that Raemaeker has witnessed: 1. One sales analyst candidate came with a demonstration of an Excel model he created in preparation for the first round interview with the prospective employer. 2. One woman who wanted to get the job of financial controller asked that we meet at 8 a.m. on a Saturday as she was very busy. She was kind enough to bring some homemade cookies. 3. A sales candidate once talked so positively about the luxury Swiss products that he sold for his employer that I acquired some the next day for trial use. This person is a born salesman. 4. When a 22-year-old candidate claimed to speak seven languages, including Arabic, German and French, I wasn’t sure he was telling the truth. While those languages were not required for the position, we tested him and, to my great surprise, he was fluent in all of them. 5. One candidate for a business analyst position indicated folk dancing as a hobby and invited me to see him perform. I went to see the show and was impressed. Kyiv Post staff writer Kateryna Grushenko can be reached at grushenko@kyivpost. com.
www.kyivpost.com
March 25, 2011
Business Focus 9
Special news coverage ahead on the following topics in Business Focus: April 8 Legal Services
April 22 Real Estate
May 20 Mergers & Acquisitions
June 10 Agribusiness & Food
July 7 Law firms/Top lawyers
In tough climate, investors pick their areas carefully BY V L A D L AV R OV LAVROV@KYIVPOST.COM
To say the least, the life of businesspeople in Ukraine hasn’t improved much over the year that President Viktor Yanukovych has been in power. With all the reformist steps that the government undertakes to push the country forward, it also does little to fight rampant corruption and makes dubious and controversial decisions that lack transparency. Experts agree that deregulation, decreasing the number of licenses and permits and the appearance of political stability are considered positive signs for attracting much-needed foreign investment into the country. It is all the more bizarre that the government would at the same time bar major foreign telecommunication giants from taking part in privatizing the state fixed-line telephone monopoly Ukrtelecom, or continuously pressure foreign players on the grain market, proposing a draft law nearly imposing a state monopoly on grain exports. “The adoption of these bills will cause irreparable damage to Ukraine’s already tarnished image as a country with a market economy and rule of law [and] violate the rights of investors to benefit from the proper use of investment, which is a sign of expro-
priation,” reads the open letter of the Ukrainian League of Industrialists and Entrepreneurs, Ukrainian Agrarian Confederation, and Ukrainian Grain Association to top officials of Ukraine in response to the new draft law. Anna Derevyanko, executive director of the European Business Association, said news that state fixedphone monopoly Ukrtelecom has been privatized without a competitive tender raised many questions. “People generally don’t think that it was open and transparent,” says Derevyanko. “And when it comes to potential investors [considering entering Ukraine], it’s the market opinion that really matters.” In turn, Oleg Ustenko, executive director at the Bleyzer Foundation, thinks that government’s priorities have been misplaced and all of its promised reforms should have begun with Ukraine’s biggest evil: corruption. “On the one hand, they make the right steps. But they all are all nullified by the corruption,” Ustenko says.
Survivors’ optimism Meanwhile, it seems that for investors already working in Ukraine, managing to survive the political and economical turmoil of the recent crisis is, in itself, enough to indicate that things in Ukraine have improved.
Oleg Ustenko, executive director at the Bleyzer Foundation (L) and Anna Derevyanko, the executive director of the European Business Association (R)
According to the latest Index of Investment Attractiveness published by the European Business Association, investors’ outlook on the climate has been the most favorable since the recession beginning in mid-2008. Released on March 10, the index
shows that that the respondents – nearly 100 top managers running EBAmember companies in Ukraine – are mainly optimistic about stability and predictability of the current economic situation, some of the deregulatory changes and the renewal of cooperation
with International Monetary Fund. Among the main changes for the worse, the respondents name the new tax code and its negative consequences for businesses, corruption and bureaucracy, the worsening situation with customs clearance, increased pressure on businesses and problems with value added tax refunds. In addition, the business community named backsliding on democracy and political oppression as damaging. EBA’s Derevyanko said that despite some positive signs, the general mood with investors is far from overly optimistic. Compared to the peak of the financial crisis, investors’ sentiment is indeed more positive, as macroeconomic stability and predictability have been achieved. But the major obstacles hampering development of business are still there, she said. “There are impressive reform programs, and right messages, but no improvement on the microeconomic level is felt. The only optimism is that at this point it’s not as bad as everyone feared it would be,” Derevyanko says.
Access denied No matter what EBA members’ fears might have been, some of the recent developments in Ukraine are indeed alarming, and in experts’ opinion, are sure to have a negative effect on Æ11
10 Business Focus
www.kyivpost.com
March 25, 2011
How one Danish farmer brings home the bacon on pig farm in Lviv Oblast BY K AT E RY N A PA N OVA PANOVA@KYIVPOST.COM|
KAVSKO, Ukraine – Preparing to enter Ole Jorgensen’s pig farm gives you a strong hint about the reasons behind his success in Ukraine in the last 11 years. First, you need patience as you go through a process of showering and changing clothes to avoid bringing infections to the 62-year-old Dane’s prize pigs. Second, it’s this kind of attention to detail that ensures the quality of everything producded at Jorgensen’s farm in western Ukraine. “Just follow the rules,� Jorgensen, the farm’s general manager, advised other investors looking to tap the enormous potential of Ukraine’s agricultural sector. This goes for dealing with pressures from the authorities – from predatory tax inspectors to regulatory pressure – as well as the business itself. Another part of the farm’s strict cleanliness guidelines stipulates that no employees can have their own pigs on family farms and there is also a threekilometer electric fence to keep away wild hogs from Jorgensen’s healthy pink pigs. Jorgensen said he got into the business by chance. In 2006 he was asked first to consult and then to head the Halychyna-Zahid farm, situated near Kavsko village in Lviv Oblast. The company belongs largely to Danish owners who have invested 30 million euros. The project is supported by a fund established by the Danish government to support businesses in Central and Eastern Europe, which owns 11 percent of the company. Another 6 percent belongs to the Nordic Environmental Finance Corporation, which helped modernize and reconstruct the farm. “It is patient capital. It took at least 10 years since they invested until they had dividends. They are interested in growing business,� explained Jorgensen. Having sold their first pig in 2008, they became profitable just last year, and won’t have to pay back loans until 2015.
Æ Ole Jorgensen runs a lean, proďŹ table pig farm. His advice: ‘Just follow the rules.’ In the 1980s, when the farm was founded, it employed 750 people. Now there are only 150, and 50-70 temporary ones. This smaller workforce produces three times more pigs. The farm now has 3,600 sows and only 32 hogs. They give birth more than twice a year to an average of 15 piglets. The pigs are well fed with homegrown crops. The farm has 3,200 hectares of land where crops are grown to feed the pigs, who need 100 metric tons of food per day. Jorgensen’s attention to detail means they have warm stables and enjoy good healthcare: Every pregnant sow goes through a UV-scan. “Pig breeding is a Danish specialty. We are one of the most efficient in the world,â€? he said. Apart from Jorgensen, two Danes work at Halychyna-Zahid. One manages pig-breeding; another crops. A large share of the company’s Ukrainian staff has spent some time training or working in Denmark – a major destination for students of agrarian universities in central Ukraine. The company’s vice manager, Yaroslav Kebal, was one of them. He studied in Zhytomyr and worked in Denmark for two years. The experience changed his attitude. “Ukrainian-bred pigs are no good. They degenerated because of the crisis
Ole Jorgensen has tried out many businesses in Ukraine, including textile shops. He is now profiting on pigs. (Pavlo Palamarchuk)
our animal industry sunk into during the 1990s,� he explained. The farm’s pigs are all Danish-bred. Supposedly due to these “good genes,� they have 1.5 to 2 centimeters of fat compared to traditional Ukrainian “salo� producing pigs, with up to 8 centimeters of fat, according to Kebal. They will need an additional Hr 25 million to develop the farm – a bigger number of sows, more fields and maybe a slaughterhouse. Then, Jorgensen suggested, he will probably expand to other sites in Lviv Oblast. He and his deputies are not the only Danish farmers in the area. There are dozens who came here in the 1990s. Some, like Jorgensen, first setup textile shops. Others tried wood shops. Some tried both, as well as other ventures.
Their success varied. But those who are left meet every Friday in a bar in Lviv and complain about over-regulation, lack of rule of law, difficulties to get work permits and other typical problems experienced by investors in Ukraine Over the years, it has become harder for Jorgensen to listen to complaints. “It makes no sense to complain. Follow the rules or go home,� he said. “If you want to stay here, you have to be able to adapt. If not, you shouldn’t have come.� The Danish general manager insists that he is happy with the government and even enjoys some support. There is a fixed agrarian tax, he can get valueadded tax refunded as a tax credit and there is also another state program
now motivating the farmers, reimbursing Hr 1 for each kilogram sold. What frustrates Jorgensen is the long-discussed issue of the moratorium on land sales. According to some recent public statements by politicians, foreigners may be forbidden to buy land in Ukraine. If that happens, the 3,200 hectares he has invested into for years may go to other people. While some expat managers complain about Ukrainian workers trying to steal or even coming to work drunk, Jorgensen seems relaxed about it. “Danish people do not have the imagination to predict everything that can happen here,� he said. “You just have to find a way to control it,� he added. Kyiv Post staff writer Kateryna Panova can be reached at panova@kyivpost.com
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March 25, 2011
Business Focus 11
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 RICHARD FERGUSON
Nation has lessons to learn from far-away Argentina Speeches about agriculture normally start off with the mantra: “By the year 2050, there will be 9 billion people in the world.” Agriculture companies are supposed to see this as positive. However, when it was first formulated as a forecast by the United Nations, sometime in the 1990s, it was also a sign that you ought to buy General Motors stock because everyone would want a car. The problem with these maxims is that they lapse into investment clichés. Once we accept this as conventional wisdom, we start to make the wrong investment decisions. Let’s not talk about 9 billion people on the planet by 2050, how the Chinese are eating more protein and how soft commodity prices will likely stay high for a long time. For sure, all these mantras drive the agricultural investment decisionmaking process and they are interesting themes to discuss but, in reality, they are of less importance than other factors common to all investment decisions – not just in agriculture. But let’s return to the idea of what makes a successful investment destination and why Ukraine faces many challenges in this regard.
Consider previous “hot” investment destinations. My current favorite is the view of Brazil as an agricultural superpower and the much-vaunted Mato Grosso as some kind of agricultural nirvana with few peers around the world. What people omit is the fact that the Mato Grosso is almost 2,000 kilometers from a port, the soil structures are actually quite acidic, water isn’t quite as plentiful as you might believe and the logistics are dire. If Brazil is a positive lesson for Ukrainian agriculture, then Argentina is a warning. Despite a lengthy history of industrial farming that stretches right back to the 19th century, good soils and excellent growing conditions, Argentina went from being the 8th richest nation in 1910 to the 62nd richest nation in 2010. Worryingly, Argentina’s eclipse as a major agricultural power and recently established status as an investment no-go area took effect in an era when our views of emerging markets were being altered for the better and one in which commodity prices boomed. So, why was it that, between
December 2001 and October 2006, a couple of years before the whole world collapsed did Brazil attract foreign direct investment of some $55 billion compared to Argentina’s $15 billion? The fact is that Argentina, in common with Ukraine, has a range of assets which are exemplary – soils, climate, precipitation, geography and so on. But these come at the expense of the intangible factors which genuinely drive progress and investment. Let’s consider the ownership of assets. How is it that 20 years after the failure of state planning, some places still see foreign ownership of assets as a bad thing? Let’s look at this through a business, which reflects my cultural heritage – whisky. Today some 40 percent of the Scottish industry is in foreign hands. If you count the English as foreigners, that figure would probably rise to more than 80 percent. However, the product is still made in Scotland and always will be. Its vast export earnings still pile into the U.K.’s central treasury via taxes. In fact, one reason why the Scotch whisky industry is in foreign hands it is for the simple reason that half the man-
Experts say access blocked to key sectors, forcing tough search for investment deals Æ9 Ukraine’s image. Among such developments are the government’s plans to impose state monopoly on the grain exports, proposing a law that would grant the preference of exporting grain to an obscure state-controlled enterprise Khlib Investbud with unclear minority shareholders. Also controversial was the recent government decision to privatize fixedtelephone monopoly Ukrtelecom, to Austria's investment firm Epic for $1.3 billion. The tender conditions were set up in such a way that major international telecom giants such as Deutsche Telekom and Telenor could not take part. Suspicions also loom that the new owner is a front for domestic oligarchs. Experts say the whole debacle has not only deprived Ukraine of some $700 million, but sent a warning signal to investors to stay out of Ukraine. Alexander Valchyshen, head of research at Kyiv-based Investment Capital Ukraine, says such a conclusion holds especially true when it comes to large multinational companies that want to invest in key strategic sectors of Ukraine’s economy such as energy, transportation or telecommunications. “Access to these sectors is limited… The government simply has no intentions to [conduct privatizations] in an open, transparent and free marketoriented manner. [Strategic sectors of Ukraine’s economy] are really a grey
Æ Nation’s investment climate still considered high risk, high reward for outsiders area”, Valchyshen says. Valchyshen does not expect major inflow of foreign capital into these segments. “There will be no inflow of foreign capital, no new technologies and improvement of middle-level management skills,” Valchyshen said. In his view, the status quo, where major assets are split up among top oligarch groups, is likely to last until the next wave of financial crisis. Only then, in desperation, will these business sharks open up their businesses and the economy to attract additional financial resources. “Big business in Ukraine currently
operates with such huge profit margins that they do not need to open up to foreign capital. Why lose such a milking cow?” Valchyshen asks. Until the elite decides to put top assets on the market, experts advise potential foreign investors to look for business opportunities that are out of the interest range of the country’s oligarchic groups, such small- and medium-sized businesses and opportunities. Valchyshen advises potential newcomers to consider Ukraine’s vast retail market, food processing and service industries. In his view, these sectors operate in accordance with market principles, have a much lower degree of government interference and, therefore, are more predictable investments. “There are many players and market shares. Customers are more dispersed. [These assets] cost less,” according to Valchyshen. Derevyanko advises that potential investors look at Ukraine’s fast-moving consumer goods sector, focusing on trading and manufacturing segments. She doesn’t promise investors an easy life in Ukraine, however. “Every day there are fights and obstacles to overcome, no matter if you are a big or small company,” Derevyanko says. “For better or for worse.” Kyiv Post staff writer Vlad Lavrov can be reached at lavrov@kyivpost.com.
agers of the Scotch whisky industry in the 1980s were simply not up to the task. Ukrainian farming groups should be allowed to think along these lines. Let’s turn to another investment essential: the enforceability of contracts and the rule of law. Let me extend this into another place: Colonial Hong Kong, a place that shouldn’t have worked. However, what did work was the fact that rule of law and an independent judiciary capable of enforcing contracts allowed the place to flourish and made Hong Kong one of the wealthiest places in the world. Try to imagine what would happen to agricultural investment in Ukraine if it had Hong Kong’s legal code. It is a lesson Ukraine could do well to learn if it is not to repeat the Argentine calamity. And what about competition? Let me put it bluntly: monopolies are bad and competition is good. It isn’t just companies that require competition. Nations do as well. A nation that allows its companies to compete against one another will build an enduring business environment replete with opportunities.
However, state-sanctioned monopolies – as in Ukraine’s possible creation of a state grain-trading monopoly, will simply drive investment to alternative destinations. The Argentine government’s persistently meddlesome behavior in the agriculture sector has had a devastating impact on farmers over the last 50 years. In an era when the sector should have flourished, it became instead an investment backwater. Does Ukraine really want to be in a similar position in the future? What it proved was that government interference in the sector hinders investment. In 20 years, there will be some farming companies that are international in scope and diversity. They will manage millions of hectares with some of the most sophisticated capital and, above all, they will be household names. Whether they are Ukrainian remains to be seen. Richard Ferguson is the global head of agriculture for Renaissance Capital, which offers financial, investment and management expertise in high-opportunity emerging markets around the world. He can be reached at info@rencap.com
12 Business Focus
March 25, 2011
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Great Britain showcases commitments to nation Petro Poroshenko, head of the National Bank of Ukraine's Council; Mohammad Zahoor, head of the ISTIL Group and Kyiv Post owner; Roger Munnings, board member of the financial corporation Sistema; and David Hill, JCB's regional manager. The business leaders took part in a debate chaired by TV presenter Andriy Kulykov and discusses investment climate in Ukraine. Olexandr Popov, head of the Kyiv City Administration, joined other politicians and business representatives on the firt day of the event. The second day was marked by a visit of Prime Minister Mykola Azarov. On the second and third days, a major exhibition of British business and brands was opened to the public. In the run-up to the exhibition, the Kyiv Post interviewed British Ambassador to Ukraine Leigh Turner
BY O K S A N A FA RY N A FARYNA@KYIVPOST.COM
A broad range of British companies took part in the British Business Days exhibition held at Kyiv’s Globus shopping center on March 17-19. Bentley automobiles, energy giant Shell, airliner British Airways, InterContinental Hotel and clothes retailer Marks & Spencer all made grand appearances at the exhibition – the first of its kind in Ukraine. Organized by the British Embassy and the United Kingdom’s government agency devoted to trade and investment, the event showcased British companies and investors active in Ukraine. A kick-off conference that preceded the exhibition was attended by Leigh Turner, British ambassador to Ukraine;
Top 10 investors to Ukraine (billion, $) Cyprus
1
Germany
2
9.9 7.1
Netherlands 3
4.7
Russia
4
Austria
5
France
6
United Kingdom
7
Sweden
8
British Virgin Islands
9
USA
10 1.2
3.4 2.7 2.4 2.3 1.7 1.5
Total direct foreign investments to Ukraine, 1992-2010. $44.7 billion Share of Top 10 in total investments 82%
Source: State Statistics Committee of Ukraine.
to get his assessment of the state of investment opportunities in Ukraine. Kyiv Post: Is there a lot of business between Great Britain and Ukraine? Leigh Turner: Britain is already the seventh biggest investor in Ukraine. Since 1992, we invested around 2 billion pounds [$3.5 billion] in the nation. There are more than a hundred British companies working here. If we look in the other direction, London is the center of finance for Europe. Many Ukrainian companies are raising funds using London. One recent example is an agribusiness called Avangard, which is Ukraine’s largest egg producer. They recently raised 200 million pounds on the London Stock Exchange to modernize their work in Ukraine. So, there is a lot of trade in both directions. KP: How has the level of British investments into Ukraine changed one year into the presidency of Viktor Yanukovych? LT: In 2009, when we had the global financial crisis, trade levels were less. They recovered quite strongly in 2010 and are continuing to grow. We still think that there is a lot that we need to do to improve the business climate here in Ukraine. On the one hand, there are positive developments which we welcome. For example, there is more macroeconomic stability in Ukraine. There’s been a good proposal for a new law on public procurement. We have promises of action to introduce automatic refunds of value added tax. And we have heard talk about lifting the moratorium on the sales of agricultural land. That’s all positive. At the same time, we also have continued reports of corruption. We hear about problems with the rule of law. We have problems at the customs services. We have repeatedly heard about planned changes that will bring the automatic refund of value added tax, but it never quite seems to happen. In addition to that we have some new challenges such as the introduction of grain export quotas and proposals for a new grain export monopoly. These kinds of things make investors uncer-
British Ambassador Leigh Turner
tain. Therefore it delays investments and holds back trade. KP: How have the government’s export restrictions on grain and non-transparent issuance of export quotas affected Ukraine’s investment climate? LT: I have heard concrete examples of international companies which have been keen to invest hundreds of millions of dollars in agriculture in Ukraine. But because it has become difficult or even impossible for companies freely to export grain, those investors have thought again about whether they should invest in Ukraine. The existence of grain quotas, in itself, creates uncertainty in the market. That’s one problem. The second problem is how the grain quotas are distributed. If you have a system where grain quotas are distributed in such a way that nobody knows quite why some people receive grain quotas and other companies do not, that creates uncertainty. It creates the possibility that people will suggest that some companies received grain quotas because they have good connections. This is bad for competition, bad for business. KP: It’s no surprise to anyone that corruption is a big problem
in Ukraine. Wouldn’t it be easier for Ukraine to overcome its problem if the International Monetary Fund, for example, stopped lending until the nation made progress in combating corruption? LT: The IMF and other international institutions have strong mechanisms in place to try and make sure that the money which they give to Ukraine is spent wisely. We, as the United Kingdom, work very closely with Ukraine in a number of areas to try to diminish corruption here … We’ve been working with the SBU [Security Service of Ukraine], organizing visits by experts, to help Ukraine tackle cybercrime, counter terrorism and other technical areas ahead of Euro 2012. But in the end, I think that unless everybody in Ukraine begins to accept that this is a real problem there will a very little progress. KP: Would tougher measures by the West work, such as travel bans on Ukrainian oligarchs? LT: We have quite clear rules about who should receive visas. If people meet the required standards we will issue them a visa. One of my big problems here in Ukraine is that sometimes extremely wealthy people get in touch with me and say: ‘I can’t understand it. I haven’t received a visa even though I have billions of dollars in my bank account.’ Usually, the problem is that people who are very wealthy don’t want to show how much money is in their bank account, so they don’t give enough evidence to the visa officer to demonstrate that they can support themselves in the UK and then the visa officer turns them down during visa application. So, my message to all the very wealthy Ukrainians is that if you want to get a visa, you have to show in your visa application that you have enough money … Of course, if somebody lies in their visa application, or if anybody has been convicted of a serious crime, then that might have an effect on their visa application. Kyiv Post staff writer Oksana Faryna can be reached at faryna@kyivpost.com.
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March 25, 2011
Business Focus 13
No rule of law leads to many conflicts for investors, companies BY O K S A N A FA RY N A FARYNA@KYIVPOST.COM
Germany’s Martin Bauer Group says it may lose its stake in Ukraine’s enterprise Liktravy because of a dispute with a minority shareholder. The German investor calls it an attempt to extort money, while the shareholder claims he is acting legally in defense of his corporate rights. These kinds of disputes are not unusual in Ukraine and they are hurting the nation’s ability to reach its investment potential. Business disputes in Ukraine are exacerbated by unclear legislation, unreliable courts and no rule of law – or law of the jungle, some would say. These disputes are why many businesses create a second layer of protection abroad, in the form of offshore corporate entities, or write clauses into contracts requiring that lawsuits get adjudicated abroad. All of these obstacles add cost and uncertainty to investing in Ukraine. Some argue that these problems cause many foreign investors to bypass the nation in search of a friendlier business environment, or at least a more predictable legal environment – such as in the 27-nation European Union. The Martin Bauer Group, a major producer of herbal teas and other products, bought 24 percent of the Ukrainian enterprise Liktravy at the end of 2010.
Æ Courts are seen as unreliable arbiters of business disputes in Ukraine Martin Bauer considered it a lucrative investment and a great partnership. The Zhytomyr company supplies 70 percent of herbs in Ukraine and both companies have more than 80 years experience in the field. The German investors were obviously unhappy to learn that they may lose their shares in Liktravy. Minority shareholder Oleg Stetsenko, who owns only 3 stocks out of 340,000, filed a lawsuit to cancel shares issued after 1999. “It may lead to a situation in which those shares never existed,” said Bogdan Borovyk, a lawyer at Beiten Burkhardt, which represents the German investor in Ukraine. “In fact, the legal consequences of this case are
not clear. It is not a normal situation when shares issued six to 12 years ago are canceled.” The lawsuit was preceded by a smear campaign against Martin Bauer in the Ukrainian media, during which Liktravy also faced multiple checks by tax police and other state authorities. Martin Bauer’s lawyer called the situation a classic example of “greenmail,” an attempt by minority shareholders to threaten the firm and force it to buy their shares back at a higher price. The term derives from words blackmail and greenback, or money – the main object of corporate raiders. Stetsenko rejects allegations that he is a greenmailer, blackmailer or corporate raider. He said the shares were issued improperly, threatening minority shareholder rights. “I defend my corporate rights and all my actions are carried out within the legal framework,” Stetsenko said. “None of my actions are illegal.” A Kyiv local administrative court ruled against Stetsenko. But he plans to appeal it. Andriy Semydidko, director of the Anti-Raider Union of Entrepreneurs, a nongovernmental organization which protects local businesses from raider attacks, hostile takeovers and greenmail, says such conflicts can go on for months. “The budget of such a greenmailing campaign is about $10,000-$20,000,”
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Herbs sold by Zhytomyr’s Liktravy can be found on the shelves of most pharmacies in Kyiv. (Yaroslav Debelyi)
Semydidko said. “An individual organizing it may demand five times more in exchange for his stake in a firm or a peace argument.” Before the 2004 Orange Revolution, which led to the overturning of a rigged presidential election, Semydidko got up to 50 complaints alleging “greenmail” each year. According to Semydidko, back in the authoritarian days of ex-President Leonid Kuchma, the tactic of blackmailing majority shareholders proved effective. However, the side that won state backing tended to prevail. Then, under President Viktor Yushchenko’s administration from 2005-2010, centralized state authority weakened – a circumstance that favored corporate raiders even more, Semydidko said. Violence was even used to take over enterprises with impunity. Now, with President Viktor Yanukovych centralizing power in his hands, some fear corporate raiders are seeking to rely on strong state backing,
as they allegedly did under Kuchma. “We don’t see many violent takeovers now, but minority shareholders are again trying to use the strong power ‘vertical’ to threaten companies,” Semydidko said. “We will have more examples of Liktravy's [experience] in the near future.” The German company still has faith in Ukraine’s courts and plans to become a major shareholder at Zhytomyr’s Liktravy. They hope to succeed and sell more Ukrainian-grown herbs to Ukrainians. “Producing in the country for the country, like we do in Russia, Poland, The Czech Republic, has emerged as a successful strategy,” said Wolfgang Hidding, a spokesperson for Martin Bauer. As to the potential risks of investing in Ukraine, Hidding answered: “We have a lot of experience in expanding into foreign markets and we know that each market has its peculiarities.” Kyiv Post Staff Writer Oksana Faryna can be reached at faryna@ kyivpost.com
14 Business Focus
Business Sense
March 25, 2011
www.kyivpost.com
Editor’s Note: Business Sense is a feature in which experts explain Ukraine’s place in the world economy and provide insight into doing business in the country. To contribute, contact chief editor Brian Bonner at bonner@kyivpost.com
WITH TIMOTHY ASH
Political risks down, same economic challenges remain Editor’s Note: Timothy Ash made this assessment after visiting Kyiv on March 17-18.
Political stability in Ukraine appears relatively assured, with President Viktor Yanukovych and his Party of Regions enjoying control. I expect the release of the latest International Monetary Fund credit tranche of $1.6 billion in April or May. Reforms are, however, proving controversial (e.g. pension reform, hiking the retirement age) and the government has seen its popularity fall. The administration may want to get difficult reforms out of the way this year, clearing the path for parliamentary elections in October 2012. The ruling coalition thus far continues to take advantage of the fact that the opposition is in disarray. Perhaps the biggest risk on the political and economic front appears to come from relations with Russia, as Moscow has threatened to close borders if Ukraine signs up to a free trade agreement with the European Union. This may just be a negotiating ploy to secure access to assets in Ukraine. Economic growth seems to be picking up steam, helped by the strength in metals prices. Inflation has moderated, and while the trade/current account deficits look set to widen, they remain financeable, and the hryvnia looks set to remain stable. Budget trends generally remain encouraging, with the 2011 deficit target appearing attainable. The public sector debt service schedule also appears manageable, helped by $1.3 billion raised from the privatization of fixed-line telephone monopoly Ukrtelecom and recent success in borrowing from the domestic/external markets.
Lower risks Political risk has fallen significantly over the past year, following Yanukovych’s election on Feb. 7, 2010. Yanukovych’s control of the executive and legislative branches has ensured a much more effective decision-making process. It stands in some stark contrast to the fractured state of governance under the former Orange Revolution coalition of former President Viktor Yushchenko and Prime Minister Yulia Tymoshenko, who were almost in constant conflict. The administration is currently facing a wave of criticism for what are seen as its over-centralizing power and, some would say, undemocratic tendencies. Tensions also appear to exist within the ruling administration, a reflection of competition between the competing clans which make up the Party of Regions. Critics argue that this is undermining the effectiveness of policy in areas such as privatization, as the various clans compete for resource allocation, and to counter the activity of their rivals. One respondent aptly compared the Regions Party to a jointstock company, with a number of competing shareholders (in this case the oligarchs) each lacking a majority but struggling to control the company.
International relations The Ukrainian government is, however, making good progress now in laying the technical ground work for conclud-
ing a free trade agreement with the EU. The prospect has, however, caused some irritation on the part of Russia, which is also currently pushing forward with economic/trade integration within the its own union with Belarus and Kazakhstan. Russian Prime Minister Vladimir Putin has warned Ukraine that signing a free-trade agreement with the EU would be incompatible with its own bilateral trade agreements with Russia and its partners. Moscow has threatened sanctions and, in particular, the nuclear option of closing its border with Ukraine. Potentially this could prove highly destabilizing for Ukraine and the wider region. Moscow might also look to re-negotiate the preferential gas price agreement it concluded in 2010, which has given Ukraine a $100 per 1,000 cubic meters discount on imported gas. In Moscow, there appears to be some frustration that the Yanukovych administration, widely perceived to be pro-Russian, has delivered little in terms of Russia’s business interests in Ukraine. This has though been the track record of Regions- led administrations, i.e., of marketing itself as the pro-Russian party, but delivering little to Russia in practice. The strategy enables Ukrainian business interests to dominate the domestic economy.
A woman shouts slogans and beats to bucket during a mass rally on Independence Square in Kyiv, on Nov. 25, 2010. (AFP)
Poor demographics Ukraine, like Russia suffers poor demographics, and large net out-migration. Estimates suggest that the population of 46 million will continue to contract by around 200,000 per year. The departure of the young, skilled and better educated to jobs overseas obviously creates a huge challenge. A weak business environment still, and uncertain investment environment continues to deter investment both by locals and foreigners. Inflation has dipped in recent months and state officials have indicated that the weak state of domestic demand, base effects, and a likely better harvest, plus the stability of the Hryvnia should cap upside pressure for 2011. There was even an assumption that inflation could surprise on the downside, remaining in single digits.
Pension reform To secure a $15.6 billion IMF loan, difficult reforms have been forced through – including hiking energy prices, restructuring the banking sector, introducing a new tax code and pushing through administrative reform. At present the focus is on pension reform, which has been set as a high priority by the IMF. Current government plans are to hike the retirement age for women by five years, from the current age of 55, and to reduce entitlement more generally. The reform aims to address a huge structural deficit in the pension/social security fund which, given the country’s poor demographics and high dependency ratio, is set only to deteriorate still further. The reform is obviously unpopular, but the government does seem determined to force the reform bill through parliament, and likely over the next month. Given progress with pension reform, and elsewhere, this would allow the IMF to release the latest tranche of $1.6 billion.
Energy price hikes The issue of energy price reform/liberalization remains controversial. The government has already hiked gas prices by 50 percent in August 2010, and electricity prices were also raised by around one third in March. Further energy price hikes are planned for 2011, which would entail a doubling of gas prices, in effect, over the past year.
Government cuts Ongoing and quite brutal administrative reforms – which have seen the head count in government departments slashed by up to 50 percent – suggests that the government still has the stomach to make the required changes. There is some concern that reform fatigue will set in as the date of parliamentary elections approaches.
4.5 percent, with continued growth in metals, something of a recovery in agriculture and some stability/modest growth in construction. Investment growth has been slow to recover, particularly in the private sector, but over 2011 and 2012, investment related to the Euro 2012 football championship should begin to kick in. The real estate market remains depressed, with prices on average still running at 50-60 percent of their precrisis peak. Banks remain unwilling to extend credit for housing loans/mortgages, which remains a key bottleneck.
Government officials reassured that while they are no longer in need of IMF financing, they are committed to the IMF program as it offers an important straitjacket for reform, which also helps provide a key signal/benchmark for the market. They reiterated that remaining current on the IMF program was important in terms of reining in the government’s borrowing costs. I heard mixed views on some of the other legislative efforts, particularly those pertaining to the business environment.
Tax code critics Criticism of the new tax code has been pretty endemic. There is a sense that it penalizes small-and-medium sized businesses versus big business. I also heard complaints that VAT refunds are still being delayed and selectively applied. Frustrations with agricultural policy also seem to be building, while a bill currently being debated would create a new monopoly for the procurement and export of agricultural production. There is also some suggestion that it would act as a holding company for state-owned land. Foreign agro-commodity trading companies are understandably up in arms and are lobbying their governments to intervene.
Perhaps key here has been the moratorium on land sales, which in effect precludes the development of land market and hence the use of land by farmers as collateral to secure credit. Infrastructure around agriculture remains a constraint on development, including poor storage, processing, transport and marketing systems. To put things into perspective, grain production in Ukraine typically averages 20-40 million tons per year, with yields of around two ton per hectare. There is no reason, with proper infrastructure developed around the farm gate, that yields could double or even triple, which could suggest production rising to 100 million tons or more. Key here will be lifting the moratorium on land sales which may occur as early as 2012.
Budget deficit In terms of the budget and budget financing, current plans are to run a deficit of around Hr 50 billion in 2011, equivalent to around 3.5 percent of gross domestic product. The government plans to raise Hr 43 billion from the domestic debt market and Hr 32 billion from external borrowing. Hr 10.6 billion was set as the target for state asset sales, which has already been reached with the sale of Ukrtelecom.
Farm sector lags
Depressed economy
The continued poor performance of the agricultural sector remains a conundrum in Ukraine, whose rich farming land is best soil in Europe. Given its natural advantages, and the sheer size of the cultivated area in the country, Ukraine should be the “breadbasket” of Ukraine. It is not because agricultural policy reform has been neglected over the past two decades.
Full year real growth in gross domestic product came in at 4.2 percent for the full year in 2010, largely being exportdriven, helped by the recovery in metals prices. The domestic economy largely remained depressed, pulled down by continued contractions in construction, real estate and banking, and also a poor harvest. Expectations are for growth to accelerate to around
Banking sector The sector continues to struggle with adjustment/restructuring as a result of the 2008-2010 crisis. The sector remained loss-making in 2010, but losses were reduced to Hr 13 billion, from Hr 38 billion the year earlier. Most banks remain loss-making but the hope is that the sector will begin to show a profit towards the end of 2011. Banks have been recapitalized, while the authorities are continuing with work out procedures for those banks taken into state administration, with either new owners found or the banks closed. Uncertainty surrounds the outcome in a number of these latter cases, including the troubled Nadra Bank under government supervision. The sector is again seeing asset growth, with expectations that assets will grow around 18 percent this year. Banks generally remain cautious over expanding their loans, a reflection of the high level of non-performing loans run up through the recent crisis – perhaps as high as 35 percent. The banking sector is unlikely to be a key driver of growth for the next 2-3 years. Banks are instead focusing on improving risk management procedures, maintaining liquidity/capital buffers and there will also be an acceleration of mergers & acquisitions in the sector. A recent trend has been for Russian banks to seek to expand rapidly into the sector. Russian banks seem eager to expand their market share to around 35 percent; they appear amongst the few now aggressively lending. Timothy Ash is global head of emerging markets research at the Royal Bank of Scotland in London. He can be reached at timothy.ash@rbs.com.
www.kyivpost.com
Business Focus 15
March 25, 2011
Business Sense
Harvesting in Kharkiv Oblast on July 15. (UNIAN)
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 VIKTOR LUHOVYK LUHOVYK@DRAGON-CAPITAL.COM
Markets hopeful about Ukraine Investors say state forming monopolies in agricultural sector Æ7 Ministry has thrown its weight
investors to flood into the country, but a draft law proposed by the State Agency of Land Resources aims to forbid foreigners from purchasing land. The government has said it wants to protect Ukrainian farmers from foreign companies that want to gobble up the land, but critics say it is part of a plan to prevent competition and keep land cheap for those who are able to buy. “When you run out or cripple a lot of companies, agribusiness markets suffer, lenders are very cautious and the land price goes down. Then you privatize land,” Williams said, calling land privatization “another big cloud on the market.” Yuriy Brykaylo, a lawyer, shares the fears that prohibition on foreigners buying farmland will lead to reduction of the land’s value. “The excessive regulation of the land market by laws will not bring the results expected by the state,” he said, adding that the foreigners willing to buy the land will find the ways to obtain it. There are still ways for foreigners to invest in Ukraine’s agriculture sector, such as through a number of leading Ukrainian companies that have begun trading on foreign stock exchanges or through grain traders. Kyiv Post staff writer Oksana Grytsenko can be reached at grytsenko@ kyivpost.com
behind the second bill, saying it would give farmers a fairer deal. “It looks like a Ukrainian has to plant the harvest but selling of it becomes the prerogative of foreign traders. It is not fair,” said Prysyazhnyuk. A number of international organizations, including the European Bank for Reconstruction and Development and the Grain and Feed Trade Association criticized both draft laws for attempts to monopolize grain market, and said that they would end up hurting farmers. Farmers, experts say, will not be able to export grain by themselves, while any monopolist on the grain market regardless of whether it is private- or state-owned will be able to force producers to accept below market price. On the contrary, analysts say, Ukrainian farmers need foreign money to improve the quality of their production, and better quality products will bring the producers a better profit. “When money comes into the country, this develops the infrastructure, the country’s agrarian sector rises and the quality of products improves,” said Konstantin Fastovets, a research analyst at Renaissance Capital investment bank. The news that Ukraine’s authorities want to lift the moratorium on the sale of farmland in the next two years should have been a signal to foreign
The Ukrainian stock market is up more than 60 percent since the presidential elections a year ago. Yields on government Eurobonds are hovering at record lows of 4-8 percent. And local corporations are on course to attract billions of dollars of fresh capital from foreign markets this year. Over the past year, we have seen foreign portfolio investors return to Ukraine in growing numbers, their money flowing into stocks and bonds of companies in agriculture, the financial sector, metallurgy and mining, to name a few sectors. As is usually the case, capital markets were first to react, and this was their natural response to Ukraine becoming over the past year a more secure and predictable market for foreign investors to be in. But it is also true that much of the markets’ improved perception of Ukraine owed to expectations that, apart from ending years of political infighting, the country’s new administration led by President Viktor Yanukovych will be quick to deliver on announced reforms and improve the country’s investment climate. Restoring governance in the public sector, implementing fiscal austerity measures, approving the tax code, repealing the foreign-exchange tax, starting to cut red tape for business and enacting unpopular but overdue tariff hikes were all long-awaited steps in the right direction. But all this leaves one with a feeling that what has been done, and possibly much more, could have been accomplished in a much shorter time span. Corruption and weak rule of law, compounded by the state’s tightened regulatory grip over agriculture and other sectors, are probably the most glaring examples of as-yet-untackled problems, at least according to the foreign business community in Ukraine.
Æ But government has only until end of year to make inroads into solving serious problems Without progress in these areas, most of the announced ambitious targets, such as making Ukraine a G-20 country by 2020, will continue to seem barely achievable. The government has yet to prove its commitment to transparent privatization, as the recent sale of fixed line telecommunications monopoly Ukrtelecom can hardly be held up as the case in point. The upcoming sales of thermal power generators and electricity distributing companies will hopefully be a different story. Last but not least, there is a risk, highlighted by the newly emerged stumbling blocks in talks with the International Monetary Fund, that the authorities may slow the pace of unpopular utility tariff hikes and delay pension reforms for fear of popular backlash. The realization that the government needs a working IMF program to keep foreign debt markets accessible on favorable terms for itself and private business will most likely prevail in the end. However, the window of opportunity may be closing soon. Realistically, the government has until the end of the year to make serious inroads into the most problematic areas. After that, the campaign for October 2012 parliamentary elections, and with it inevitable populism, will kick in. Streamlining public administration, deregulating the business
environment, transforming the pension system and launching other comprehensive structural reforms cannot, by definition, have immediate positive impact on the electorate. Postponing these difficult decisions until after 2012 may start to look an increasingly tempting prospect with each passing month. Last year, it was still permissible for Ukraine’s current administration to blame the country’s weak competitiveness and economic hardships on the previous disorganized and splintered government. But with the presidential elections now distant history, political power fully consolidated on all levels and the global economic background largely favorable, the government is going to be judged based solely on its deeds. Promises of reform and clich?d mantras about Ukraine’s huge consumer market of 45 million people, cheap production base, strategic location, and so on, have been repeated too often to continue to make a lasting impression on investors, and will hardly postpone the day of reckoning for much longer. Markets are giving Ukraine another thumbs up, and the ball is now firmly in the government’s court. Viktor Luhovyk is research production director at Dragon Capital, Ukraine’s largest investment bank. He can be reached via luhovyk@dragon-capital. com
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16 Business Focus
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Noerr TOV, (in Ukraine since 2007), www.noerr.com, info@noerr.com, 7/11 Khreshchatyk Str., Kyiv 01001, Ukraine (44) 495-30-80
Dr. Mansur Pour Rafsendjani
0/100
Munich, Germany
30
20
Full-service legal and tax support capabilities
Renaissance Capital, (in Ukraine since 2004), www.rencap.com.ua, ukraine@rencap.com, 2 Mechnikova Str., 14th floor, Kyiv 01601, Ukraine (44) 492-73-83 (44) 493-91-02
Roman Nasirov
0/100
Kyiv, Ukraine
50
20
Financial and strategic advisory, M&A, structuring, equity and debt issuance and trading, research
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
0/100
International law firm, 22 offices worldwide/1 office in Ukraine
70
More than 30 lawyers in Ukraine
Legal services
TMF Ukraine, (in Ukraine since 2006), www.tmf-group.com, Ukraine@tmf-group.com, 23A Yaroslaviv Val Str., Kyiv 01034, Ukraine (44) 428-94-44 (44) 428-94-49
Pavlo Boyko
0/100
Amsterdam, the Netherlands
36
0
Bookkeeping and reporting services, human resource and payroll services, corporate secretarial services
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Opinion/News 17
March 25, 2011
Kuzio: Are authorities stacking deck in Yanukovych’s favor? Æ4 Arrested Tryzub members had alibis Dec. 31 and, in addition to the explosion, someone staged a second “terrorist” attack -- an arson fire on the Party of Regions. Tryzub members, found with weapons that suspiciously look planted, were arrested on Jan. 10. A second clue happened when more weapons and explosives were found on nine Tryzub members arrested in January. The Interior Ministry claimed they confiscated an AK-47 assault rifle, a pump action rifle, two sniper rifles, three pistols, nine walkie-talkies and two grenades. The third clue is the effect of widespread arrests and detentions of Tryzub leadership and members has on western Ukraine. The weakening of Tryzub leaves the field open for another nationalist organization Svoboda (Freedom), which won October 2010 local elections in three Galician oblasts. Svoboda has long been dogged by claims that it was originally funded by oligarch Igor Kolomoysky and is supported by First Deputy Prime Ministers Borys Kolesnikov and Andriy Klyuyev. Another competitor to Svoboda, Yulia Tymoshenko’s Batkivshchyna (Fatherland), is also under pressure and was unable to put up candidates in Lviv and Kyiv in the October local elections. Tymoshenko is charged with diverting funds raised under the Kyoto Protocol to the pension fund. If
Expert examines wreckage of Stalin monument in Zaporizhya (Ukrinform)
Experts work in Makiyivka after bomb blast near a trade center on Jan. 20.
she receives either a prison sentence or suspended sentence, her criminal record will prevent her from running for parliament next year and for president in 2015. Svoboda, like other political parties allegedly backed by oligarchs close to the authorities, is therefore what Ukrainians describe as a “controlled opposition.” Svoboda has already begun working with the Party of Regions in the Lviv city council, where they voted to remove the tax-free exemption from the city’s private Catholic University. Some Ukrainian experts have claimed that the ultimate aim of the strategy of “directed chaos” is to ensure
Svoboda leader Oleh Tiahnybok enters the second round of the 2015 elections with incumbent Yanukovych, where he would play the same role as Communist Party leader Petro Symonenko, who faced Leonid Kuchma in the 1999 presidential elections. In 2015, Ukrainian voters would therefore, as in 1999, vote against Tiahnybok as they voted against Symonenko, thereby ensuring second terms for Kuchma and Yanukovych despite their low popularity. The arrests and detentions of 15 Tryzub members have been plagued by illegalities. “If the authorities act with such ban-
Is Ukraine working with Israel’s Mossad? Æ2 Veronika said, speaking anxiously but confidently in accented Russian, a result of living the last 11 years in the Gaza Strip. She met her husband, who is 10 years her senior, in Kharkiv in 1998, where she was studying violin at music school alongside classes at the agrarian university, while he was writing a thesis on management of power stations. They married the same year, and Veronika converted to Islam, halted her studies and changed her surname from Romanova to Abu Sisi. She now cuts a striking figure, her Muslim headscarf discordant with the surroundings of her parents' two-room flat in the town of Kotsyubinske on the outskirts of Kyiv. Veronika moved to the volatile Gaza Strip with her husband, who secured a well-paying job as a top manager at the power station because of his education in Ukraine. But after a devastating Israeli bombing campaign in 2008, which began just days after she had given birth to the couple’s sixth child, they decided to leave. “I gave birth to my child on Thursday and on the next Saturday a war started. I could not bear that any more. So we decided to resettle to my homeland,” Veronika said, confessing that she regrets this decision now. After being informed about the disappearance of her husband, Veronika, who was in Gaza at the time with her children, urgently came to Kyiv through Egypt. She crossed the border crawling though one of the tunnels often used
Æ Wife of abducted Palestinian denies that he is tied to Hamas by Palestinians to bypass the EgyptGaza Strip barrier built by Israel. Her sister-in-law received a mysterious SMS from her husband’s cellphone, saying in Russian that he had to “go to ground” in Saudi Arabia for a while. “My husband doesn’t use such phrases,” Veronika said. She appealed to Kyiv police, believing he had been abducted for ransom. Then, out of the blue, Dirar called briefly on Feb. 27, saying he was in jail in the Israeli city of Ashkelon. How he got there isn’t clear, as a court-imposed gag order still prevents publication of what happened by Israeli media. But a lawyer for the jailed man described how the prisoner described how he was seized from the train in Poltava by three men, two of whom were in uniform, before being whisked to Kyiv by car. According to this account, Abu Sisi was received by six
men who introduced themselves as Mossad agents who flew him by plane to Israel, with a stop-off at an unknown location after four or five hours. His wife believes he was seized by Israelis because they want to know how the power plant works in order to disable it. Israeli authorities have refused to comment on the case. It also remains unclear what he is charged with. Rumors have swirled of connections with Islamic militant group Hamas, but his wife denied this. “My husband is distant from politics. He is a technician and has only two passions in life – his work and his family,” she said. Despite being told time and again that Ukrainian authorities don’t know what happened to her husband and are investigating, Veronika said she’ll continue to fight to find the truth. “My heart is cold now as only this way I could help Dirar,” she said, adding she intends to take Ukraine, Israel and the Palestinian Authority to the European Court of Human Rights. Now, she’s concerned for her children, staying with family in the Gaza Strip without either parent. She said she now feels forced back there because of what has happened in Ukraine: “My state now makes me go back to the region I was trying to leave tooth-and-nail.” Kyiv Post staff writer Oksana Grytsenko can be reached at grytsenko@ kyivpost.com
dit methods with us then tomorrow it could be applied to everybody,” Olesia Prymenko, deputy leader of Womens Sich, a member organization of Tryzub, warned. Incarcerated Tryzub members have complained about being denied access to lawyers, some of whom were threatened for defending the activists, confiscation of cell phones, denial of food and water, toiletry hygiene and clothes. Worse still, the arrested activists have allegedly been subjected to interrogation methods that can be described as “torture,” such as psychological threats. If a monument to Adolf Hitler was
put up in Germany, anybody beheading it would be national heroes. In Ukraine, where a 2006 law classifies the 1933 Holodomor that Stalin unleashed as “genocide,” charges of “hooliganism” for the beheading of Stalin have been reclassified as “terrorism” through a strategy of “directed chaos” that seeks to maintain the current leaders in power indefinitely. Taras Kuzio is Austrian Marshall Plan Foundation visiting fellow at the Center for Transatlantic Relations, School of Advanced International Studies, Johns Hopkins University in Washington, D.C. He has just completed a contemporary history of Ukraine.
18 News
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March 25, 2011
Kuchma under investigation in Gongadze’s 2000 murder Æ1 of Gongadze. This is the preliminary charge. Further investigations are ahead. It is too early to say what the final charges will be. The investigation is ongoing,” Boychenko said. Prosecutors on March 22 announced they had opened a case into Kuchma’s involvement in independent Ukraine’s most notorious crime, sparking life into a decade-long investigation that critics say has long avoided an evidentiary trail leading to Kuchma. Critics – including Gongadze’s widow and a lawyer representing her – welcomed the surprise news, but raised concerns that Kuchma is accused of abuse of power rather than the more serious charge of murder. This charge appears to have outrun its 10-year statute of limitations. “The opening of this case is like an earthquake in Ukraine,” the murdered journalist’s wife, Myroslava, said. “I am just worried that from a formal standpoint, ex-President Kuchma was accused of abuse of power, which led to the murder. He should be accused directly of murder and ordering the murder,” she added. Theories swirled about why the investigation was now turning on the 72-year-old former leader. Over a decade, prosecutors avoided the issue. Political analysts said the charges could be an attempt to absolve Kuchma of guilt, or to blunt Western criticism that criminal probes into opposition figures are politically motivated. Prosecutors, however, said they are determined to crack the case. Gongadze, a muckraking journalist and Kuchma critic who founded the Ukrainska Pravda news website, disappeared on Sept. 16, 2000. His headless body was found in woodlands outside Kyiv two months later. The case exploded into a larger scandal at the end of that year, when opposition lawmaker Oleksandr Moroz made public tapes allegedly made by former presidential bodyguard Mykola Melnychenko. On these recordings, a voice that sounds like Kuchma’s talks ut having Gongadze kidnapped by Chechens and orders subordinates to “take care of him.” These tapes have never been authen-
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First Deputy Prosecutor General Renat Kuzmin attends a news conference in Kyiv on March 22. Ukraine’s state prosecutors on March 24 charged Kuchma with abuse of power that led to the death of Georgiy Gongadze in 2000, a far less serious charge than murder. (Yaroslav Debelyi)
ticated conclusively, but the first deputy prosecutor general, Renat Kuzmin, said they would be considered as “material evidence” in the case against Kuchma. Three police officers are currently in jail for the murder and a former police general, Oleksiy Pukach, is awaiting trial for the killing. Prosecutors in September named late former Interior Minister Yuriy Kravchenko as the person who ordered a subordinate to slay Gongadze, in a move critics said looked like an attempt to shield other officials of blame. Kravchenko died from two gunshot wounds to the head on March 4, 2005, shortly before he was due to give evidence to prosecutors. Investigators called his death a suicide. The decision to open the new investigation came as a bolt from the blue, particularly as many leading figures in the current government rose to prominence under Kuchma, who governed from 1994 to 2005.
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President Viktor Yanukovych himself was handpicked as prime minister by Kuchma in 2002. The announcement of charges against Kuchma was made by Kuzmin at a March 22 press conference. “Today, Kuchma is suspected of exceeding authority in giving illegal orders to Interior Ministry officials that led, as a result, to the murder of a journalist,” he said. Arriving for questioning on March 23, Kuchma vigorously denied the accusations. In the past, he has said the killing of Gongadze was a provocation. He has hinted that foreign powers, including the U.S. Central Intelligence Agency, aimed to discredit him. The U.S. has rejected such claims. Kuchma is barred from leaving Ukraine during the investigation. Prosecutors have not revealed what evidence they hold against Kuchma, but the fact the Melnychenko tapes will be used as evidence marks a water-
shed. The hundreds of hours of recordings – allegedly made on a device stuffed behind a sofa in the president’s office – could also bring pressure on other current and former officials. It could also lead to further investigations into other apparent crimes that are discussed on the tapes by voices that sound like Kuchma and other top officials, including pressuring judges, bribery and fixing elections. Kuchma and former chief of staff Volodymyr Lytvyn – now parliament speaker – were allegedly caught on tape in 2000 plotting ways to silence Gongadze. Kuchma and Lytvyn have vehemently denied the authenticity of the tapes, but leaked testimony by murder suspect Pukach also allegedly implicates the pair. Moreover, Pukach’s former lawyer, Oleh Musienko, has said that his onetime client implicated both Kuchma and Lytvyn in the murder and believes they should also stand trial.
Despite the apparent sudden breakthrough after years of stonewalling and rejection by prosecutors of demands to investigate officials above former police chief Kravchenko, critics remain unconvinced that the case will get very far, never mind end in a jail term for Kuchma. Myroslava Gongadze, the slain journalist’s wife, and her lawyer, Valentyna Telychenko, said they are disappointed that Kuchma is under investigation only for abuse of office, rather than the more serious allegation of murder. But Hennadiy Moskal, a former police general and now an opposition lawmaker, said prosecutors would need more evidence than the tapes if they wanted to tie Kuchma to the crime. “[As] Kravchenko is no longer alive, there is no chance of linking Kuchma to the Gongadze murder, because what Kuchma said about Gongadze on the tapes could have been a pure emotional outburst,” he said. Shockingly for many observers, former presidential bodyguard Melnychenko said he believes Kuchma was set up. “Kuchma became the victim of Lytvyn’s intrigues,” he told the Kyiv Post. Lytvyn has repeatedly denied involvement in the killing. The surprise opening of the case left many political observers wondering why Kuchma has suddenly come under prosecutors’ spotlight after so many years. Opposition leader Yulia Tymoshenko, under investigation along with several allies over accusations of abuse of power, called the opening of the case “bluff and window dressing.” She said it was designed to make Yanukovych, under pressure from the West not to pursue politically-motivated prosecutions of the opposition, seem “just” by also going after his political patron. Telychenko remains skeptical that Kuchma will face justice, saying it’s “too soon to celebrate” a breakthrough. “The contradictory and inconsistent behavior of the general prosecutor’s office during the last several years provokes skepticism. There has always been political pressure. Therefore, I do not expect an independent and unbiased pretrial investigation,” she said.
Lifestyle
World in Ukraine sailss to Estonia, Latvia and Lithuania.
March 25, 2011
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What it takes to be a model in Ukraine
Models backstage prepare to present designer Alexey Zalevskiy’s extravagant collection during Ukrainian Fashion Week on March 18. (Alexey Furman)
BY Y U L I YA R A S K E VIC H RASKEVICH@KYIVPOST.COM
They are the objects of envy, lust, admiration and even disdain with their smooth and silky hair, long legs and thin faces and waistlines. Models seem to have an easy life, at least to those who don’t know about all the hours they spend on catwalks, wearing makeup that damages their hair and skin. And while some super models are millionaires, millions more struggle for scraps. Ukrainian Fashion Week, which ended on March 21, was once again a parade of flamboyant, dramatic and sometimes quirky fashion items that cost thousands of dollars for those who want to wear them. Prepared to be impressed, if not entertained, thousands of socialites and politicians lined
up the catwalk to witness new collections. Hundreds of Ukrainian models put these colorful shows to life for… $50 a show. “We can’t ask for more. After the financial crisis, there is not much work and the market is big,” said Svitlana Likhtina, director of model agency Inter Models. She said that thousands of models across Ukraine compete against each other to get a contract during one of the few fashion weeks or some event where a pretty face is needed. “I am shocked. The lowest salary in Europe per one show is around 500 euro,” said top model Dji Dieng from France, a guest at Ukrainian Fashion Week. The former model of Christian Dior and Vivienne Westwood fashion houses, she said models should earn more.
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“We’re just selling ourselves short. All the time we’re doing it over and over again,” said one of the models preparing to go onstage. She refused to share her name being afraid of losing a contract with her agency. Others added that they put up with small fees only to get experience before they can get a contract abroad. Olha Gesheva, 21, is one of them. Tall and slim, this blue-eyed Ukrainian from Zaporizhya became a model at the age of 15. Sussing out that making ends meet at Ukrainian catwalks will be a problem, she found the way out, to Milan. “God, it was a disaster!” she recalled her first experience. The Italian agency covered her flight, hotel and gave some $80-100 a week for food and transport, said Gesheva, which she had to pay back at the end of her contract. Æ25
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French top model Dji Dieng (Susanne Stemmer)
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Æ22 www.kyivpost.com
ALEXANDRA MATOSHKO
Greece vs. Ukraine in European-style hypocrisy ATHENS, Greece – I have long come to terms with the fact that, while geographically a part of Europe, Ukraine will not become a member of the celebrated European Union anytime soon. Let’s be honest: My country simply doesn’t live up to the high political, economic and social standards set by the 27-nation bloc. However, some of the current EU members don’t live up to them either. This Ukrainian learned this fact firsthand after moving last summer to Greece, an EU member since 1981. Ever since I moved, I have been repeatedly asked the question all the newcomers get: “So how do you like it here?” My best and most accurate response is: “It’s an experience.” The problem is that I came to regard the EU (perhaps naively so, since the first EU country I visited was Germany) as a different civilization compared to Ukraine. In that respect, Greece proved to be not so much a Western European state but a different and somewhat exotic country. But I did move here for personal reasons, so I certainly don’t regret it in the least. In general, there are plenty of European influences and innovations to be found in Greece, which don’t always work out as well as intended. For instance, unlike Ukraine’s virtually “free” medical help, Greece has a mandatory state insurance system. Alas, the money invested doesn’t guarantee people good service. Doctor appointments and tests are sometimes scheduled months in advance, very unhelpful if you develop a life-threatening condition. While public transport is new and modern, the metro only reaches a limited part of Athens. Opening of new stations is constantly delayed. A whole segment of the line next to where I live has been under repair for months. Buses and trolleys not only run at great intervals, but also spend a lot of time stuck in traffic on the city’s roads that are narrow and jammed with parked cars. Greek bureaucracy seems just as messy, Kafkaesque and packed with needless paperwork as it is in Ukraine. Endless bureaucratic procedures scare off foreign businesses and annoy residents. Public servants are often rude, uncooperative and simply not informed well enough on the issues they deal with. And just like in Ukraine, many laws are being widely ignored, such as a recent smoking ban in public places. Oh, and prostitutes often stand at central streets in broad daylight. Big bureaucratic obstacles and quotas hinder lawyers, taxi drivers, pharmacists and notaries in Æ25
www.kyivpost.com
March 25, 2011
Best gallery picks
Thursday, March 31
British photographer Ellie Davies presents a series of stunning nature photographs at Brucie Collections. Her landscapes showing what an artist can do with an ordinary nature setting have won prestigious photo awards in New York and Paris and have been printed in well-known publications Lens Culture, Shutterspark, Le Monde and others. Her older works capture people in routine settings but from an unusual perspective.
(lifestars.ru)
20 Entertainment Guide
Brucie Collections, 55B Artema St., 353-1234, www.bruciecollections.com, until May 2 It’s a big time for Ya Gallery on Khoryva, as two exhibitions of different artists are on display at the same time. Dmytro Moldavanov studied at Odessa Art School for a while, but then quit and now calls himself half-self-taught. He paints stories set in an ordinary city, where long lines in supermarkets and beer points cannot prevent a man and a woman from meeting each other. With their motley colors and disproportionate images, Moldavanov’s oil paintings look childish. To stress the effect, he signs the titles right on the canvas with clumsy letters. “New Naive” exhibition brings up loneliness and tiredness of living in a city jungle. Sportsman-turned-artist Vado always admired celebrities with strong will and natural charisma. A fan of Vincent van Gogh, Vado paints his oil portraits from photos or video screenshots. The series on display include actors Gerard Depardieu, Leonardo Di Caprio and Christopher Walken, Russian politicians Vladimir Putin and Dmitry Medvedev, and musicians Dave Gahan of Depeche Mode and Adriano Celentano. Vado claims to project his ego into the paintings. That’s why all his efforts to paint women failed, as he couldn’t find his feminine side. Ya Gallery on Khoryva, 49B Khoryva St., 492-9203, www.yagallery.com.ua, until Apr. 17 (closed Sundays)
M17 Contemporary Art Center is displaying 29 paintings by Dmitry Kavsan. The end of the 1980s and the beginning of ‘90s gave Ukraine many talented and remarkable postmodern artists from “The Southern Russian wave” school. It marks the contrast between “cold” and classic Moscow art school and the hot, expressive works of Ukrainian artists, with Kavsan being one of them. Pioneers of performance and installation, these artists were the first ones to combine art and technology. Kavsan’s exhibition displays a few meter-high oil paintings made during his school period at the National Academy of Fine Art and Architecture in Kyiv. M17 Contemporary Art Center, 102-104 Gorkogo St. (Antonovycha), 5962030, www.m17.com.ua, until March 29 (closed Mondays) Being a fan of the Soviet cinema, Yury Yermolenko spent several years collecting postcards of popular actresses. He claims that plastic surgery, now seemingly a prerequisite for super-stardom, has destroyed all natural charisma. With bright personalities, remarkable characters and inner beauty, the women of Soviet cinema differ completely from modern faceless sex-bombs with their blond hair and silicone boobs. Hung at eye level on transparent fishing lines, the postcards seem to be flying around the Tsekh gallery, making the well-known and loved images come to life. Tsekh Gallery, 69 Frunze St., (068) 118-5157,www.zeh.com.ua, until March 30 (closed Sunday, Monday) Artist Candice Breitz from South Africa studies the relationship between celebrities and their fans in the “You+Me” exhibition. She presents three video-portraits of famous pop-culture icons John Lennon, Madonna and Michael Jackson and five group portraits of their fan communities. There’s also a video of Ukrainian-Chinese triplets, living in Canada, each answering the same questions each. The similarities in their answers demonstrate their struggle to find individuality.
April 1-2
(spokesman.com)
PinchukArtCentre, 1/3-2 Chervonoarmiyska/Baseyna, Block A, 590-0858, www.pinchukartcentre.org, until Apr. 17 (closed Monday).
Heavenly dancing Lord of the Dance is one of the best world’s dance shows. The breathtaking choreography was put together by legendary Irish-American dancer Michael Flatley, who also directs and produces the show. The show is based on an old Irish legend of the victory of good over evil. Celtic motives are very dear to Flatley’s heart who, although born in the U.S., has always felt very passionate about Ireland, the country of his ancestors. Lord of the Dance has toured over 60 countries. They have performed at the 300th anniversary of the founding of St. Petersburg and at the Oscars, among many other amazing events and locations. Friday, Saturday, April 1-2, 7 p.m., Palats Ukraina, 103 Velyka Vasylkivska St., 2472303. Tickets: Hr 150-1950.
Compiled by Nataliya Horban and Alexandra Romanovskaya
With the end of Ukrainian Fashion Week, it’s time to pay attention to another part of style – hair. Hairdressers will reveal their creative genius at the Ukrainian Hair Party with some crazy styles to perhaps inspire you to make some personal changes. The evening won’t be just about hairstyles. Top Ukrainian singers Jamala and Gorchitza will spark up the creative gathering. Note that Jamala will also give a concert on April, 12 in Zhovtnevy Palats. Thursday, March 31, 6 p.m., Crystall Hall, 1 Dniprovsky Uzviz St., 288-5069. Tickets: Hr 100-200.
Best classical picks Friday, March 25 – String quartet Post Scriptum will perform pieces by Tschaikovsky and Haydn at 8 p.m., Cultural center Master-Klass, 34 Mazepy St., metro Arsenalna, www.masterklass.org/eng, 5941063. Tickets: Hr 30. Monday, March 28 – Philharmonic academic symphony orchestra will play pieces by Beethoven, Gershwin, Reinecke, Verdi and others at 7 p.m., National Philharmonic, 2 Volodymyrsky Uzviz, 2781697, www.filarmonia.com.ua. Tickets: Hr 20-70. Monday, March 28 – Chamber ensemble KyivBrass and organist Valeriya Balakhovska will play pieces by Vivaldi, Hendel, Schubert and others at 7:30 p.m., the House of Organ Music, 77 Velyka Vasylkivska St., 5283186, www.organhall.kiev.ua. Tickets: Hr 20-50. Tuesday, March 29 – ballet “Barber of Seville” by Gioachino Rossini at 7 p.m., National Opera, 50 Volodymyrska St., 279-1169, www.opera.com.ua. Tickets: Hr 20200. Wednesday, March 30 – jazz music from Mlada-Bjork Acoustic band at 8 p.m., Cultural Center Master-Klass, 34 Mazepy St., metro Arsenalna, www.masterklass.org/ eng, 594-1063. Tickets: Hr 40.
Sunday, March 27
(www.alessandrosafina.ru)
Bottega gallery, 22B Mykhaylivska St., 279-5353, www.bottega-gallery. com, until March 30 (closed Sundays and Mondays)
Ukrainian Hair Party
(hcms.hertford.ox.ac.uk)
Oleksandr Babak reminisces about his student years in a series of monochrome “Grisaille” paintings. This French name stands for the shades of grey. Playing with hues, the artist created his three-dimensional art pieces, using one color only. Naked models in different poses were placed in front of mirrors, so Babak could catch not only their image, but the reflection as well.
Italian opera voice Alessandro Safina is an Italian tenor who mixes classical opera with pop music. Born to a family of musicians, he started singing as a child. But while studying classical music, he drew inspiration from bands like U2, Genesis and The Clash, among others. Later, the combination of the two styles helped him to become successful. Odd as it may seem, a large number of his fans comes from the Netherlands where his first album “Insieme Te,” although in Italian, became platinum in the blink of an eye. Safina uses his talent far and wide: from singing together with Ewan McGregor in “Moulin Rouge” musical to acting in popular TV series “The Clone.” Sunday, March 27, 7 p.m., Palats Ukraina, 103 Velyka Vasylkivska St., 247-2303. Tickets: Hr 100-1750.
www.kyivpost.com
Entertainment Guide 21
March 25, 2011
Movies
Live Music ZEITGEIST: MOVING FORWARD Language: English with English subtitles Documentary. USA (2011) Directed by Peter Joseph Starring Adrian Bowyer and Colin Campbell “Zeitgeist: Moving Forward” is the third film in the series of independent, noncommercial documentaries. It’s an intellectual investigation into the root causes of present-day social and economic catastrophes. It tackles the origins of and interrelations between human behavior, monetary economics and applied science offering a radical approach to solving global problems: wars, poverty, corruption, crime, environmental collapse and other regressive processes.
The scene from 'The Other Chelsea: A Story from Donetsk,' the documentary which throws light on the industrial face of Donetsk. (www.retecivica.trieste.it)
DOCUDAYS.UA The 8th International Documentary Festival on Human Rights will last six days. It opens with “The Other Chelsea: A Story from Donetsk” – the film about the Ukrainian football club Shakhtar by German director Jacob Preuss. Three miners, the lead characters in his film, will attend the premiere and will be available for discussion after the screening. The festival will present dozens of top class world documentaries, famous directors and successful producers. The films will compete in two categories: art and human rights. Viewers are encouraged to vote for their favorite documentary by filling anonymous questionnaires. All screenings are free and shown in the language of the original with Ukrainian subtitles. Full program at www. docudays.org.ua/2010/en/index.php SERBIAN COMEDIES FESTIVAL The Festival of Serbian Comedies presents five films, which were ranked the best in the last 25 years in Serbian cinematography. Passengers travelling by bus, driven by a crazy driver, get into a lot of trouble in “Who Sings Over There.” Savo, a lieutenant in the Serbian army, falls for a Russian prostitute Karmen, while travelling by train to his mother’s funeral in “The White Suit.” Lela decides to make her former class-
mate Alexander fall in love with her to pay him back for school mockery. Little does she know about his current profession of a murderer in “Obituary for Escobar.” In “When I Grow up I’ll be a Kangaroo,” a boy tries to impress a supermodel, two football fans hope their team will beat Manchester United and another two lads climb up on top of the roof waiting for something to happen. Playboy Nicola babysits his 15-year old daughter while her mother is out of town. The hapless father is trying to protect her from her many admirers in “We are not Angels 2.” JOURNEY TO ARMENIA Language: French with Ukrainian subtitles Drama. France (2006) Directed by Robert Guediguian Starring Ariane Ascaride, Gerard Meylan and Chorik Grigorian Anna is a cardiologist, who learns that her father has a serious heart problem. He decides to go back to his homeland in Armenia despite his condition leaving as many signs as possible for Anna to find him. Although his daughter has little feeling for Armenia, she is determined to bring him back for a surgery. They’ve always had a difficult relationship but the journey may give them a chance to reconciliate.
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SHORTS ATTACK FESTIVAL If you think that love is pain, welcome to the club. Festival “Love is a Catastrophe” presents a selection of short films from all over the world. In surreal and sometimes odd onscreen stories an alien comes to Earth and finds love, while a scuba diver falls for a fish. A grandmother fights for her beloved car. Two people in love survive the end of the world. An Italian aristocrat loses her dear cat in the airport. A woman struggles with jealousy. And someone gets lost in the fields. All shorts are shown in original languages with Ukrainian subtitles. KYIV CINEMA 19 Velyka Vasylkivska St., 234-7301. Shorts Attack! March 25, 28-30 at 3:20 p.m., 8:40 p.m. March 26-27 at 9 p.m. Serbian Comedies: Who Sings Over There: March 25 at 7 p.m. We are not Angels 2: March 26 at 5 p.m. Obituary for Escobar: March 26 at 7 p.m. When I Grow Up I’ll be a Kangaroo: March 27 at 5 p.m. The White Suit: March 27 at 7 p.m. MASTERCLASS CINEMA CLUB 34 Mazepy St., 594-1063. Journey to Armenia: March 29 at 7 p.m. Zeitgeist: Moving Forward: March 31 at 7 p.m. BUDYNOK KINO 6 Saksaganskogo St., 287-7557 Docudays.UA: March 25-31
ART CLUB 44 44B Khreshchatyk St., 279-4137, www.club44.com.ua Concerts traditionally start at 8 – 10 p.m. March 25 Addams Family, Hr 50 March 26 Tequilajazzz Family, Hr 100 March 27 Soiuz 44 Jam Session, free admission March 28 Acoustic Quartet, Hr 20 March 29 Spring Jazz Nights: New Generation, Grigoriy Parshin Nonet, Mingus Project, Hr 40 March 30 Tape Flakes, Stepan Medusa, Hr 30 March 31 Evening with Serhiy Pidkaura, Hr 50 DOCKER’S ABC 15 Khreshchatyk St., 278-1717, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. March 25 Mad Heads XL, Tres Deseos, Hr 70 March 26 Antitela, Red Rocks, Hr 70 March 27 Foxtrot Music Band, free admission March 28 Mojo Jo Jo, free admission March 29 More Huana, Hr 20 March 30 The Magma, Hr 30 March 31 Chill Out, Hr 30 DOCKER PUB 25 Bohatyrska St., metro Heroyiv Dnipra, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. March 25 Claptomania Party: D’Black (Russia), Ot Vinta March 26 Tabula Rasa, Partizanskie Vytivky, Hr 70 March 27 Nazareth, Animals Session March 28 Lemmons, free admission March 29 Tres Deseos Latino Party, free admission March 30 Rockin’ Wolves, free admission March 31 Tex-Mex Company, free admission BOCHKA PYVNA ON KHMELNYTSKOHO 4B-1 Khmelnytskoho St, metro Teatralna, 390-6106, www.bochka.com.ua Concerts traditionally start at 9-10 p.m. March 25 Foxtrot Music Band, Chill Out March 26 Lucky Band, Beefeaters March 30 Carte Blanche March 31 L.A. PORTER PUB
Serhiy Pidkaura is known as one of the best Ukrainian guitarists. (news. studclub.poltava.ua) 3 Mazepy St., 280-1996, www.porter.com.ua Concerts traditionally start at 7:30 p.m. March 25 Brawn Shuga March 26 Abbey Road March 30 Ivan Bliuz March 31 Ace Ventura JAZZ DO IT 76A Velyka Vasylkivska St., 289-56-06, http://jazz-doit.com.ua Concerts traditionally start at 8:30 p.m. March 25 Midnight Blues March 26 Jazz Inside March 30 Natalia Maksimenko Other live music clubs: GOLDEN GATE IRISH PUB, 15, Zolotovoritska St., 235-5188, http:// goldengatepubkiev.com/ TO DUBLIN IRISH PUB, 4 Raisy Okipnoi St., 569-5531, http://www.to-dublin.com. ua/ PIVNA NO.1 ON BASEYNA, 15 Baseyna St., 287-44-34, www.pivna1.com.ua DRAFT 1/2 Khoryva St., metro Kontraktova Ploshcha, 463-7330 KHLIB CLUB 12 Frunze St., www.myspace. com/xlibclub CHESHIRE CAT 9 Sklyarenko St., 428-2717 O’BRIEN’S 17A Mykhaylivska St., 279-1584 DAKOTA 14G Heroyiv Stalinhrada St., 468-7410 U KRUZHKI 12/37 Dekabrystiv St., 5626262.
Compiled by Alexandra Romanovskaya and Svitlana Kolesnykova
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22 Lifestyle
March 25, 2011
World in Ukraine Baltic International Bank is the partner of “Baltic states in Ukraine” project
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Editor’s Note: The Kyiv Post continues its “World in Ukraine” series with a look at Estonia, Latvia and Lithuania, which celebrated the Baltic Sea Day on March 22. The newspaper will highlight Ukraine’s ties with Denmark on Apr. 15.
Estonia sets example in high technologies, innnovation, reform
Ruta Malikenaite (C) takes the floor during the celebration of the 20th birthday of Kyiv’s Lithuanian Society in the Teacher's House on Feb. 24. (Courtesy).
Lithuanian publisher touts shared history BY KATYA GRUSHENKO GRUSHENKO@KYIVPOST.COM
When Ruta Malikenaite came to Ukraine from Lithuania in 1997 to venture in Ukraine’s publishing business, the shelves of the bookstores weren’t crammed with quality books about Ukraine, let alone books in English. Certain that she could make a difference, she founded Baltia Druk, one of the first private publishers in Ukraine, together with her husband. Having started with a series of colorful Christmas cards that “had people standing in lines at post offices,” according to Malikenaite, they progressed to creating the first tourist guides in different languages that are now sold across Europe, in the U.S. and Canada. She is also known for publishing a series of books on the 200 years of common history that Ukraine and Lithuania shared between 1230 and 1569, when much of modern Ukraine's territory was part of the Grand Duchy of Lithuania. “The common history between Ukraine and Lithuania is undervalued in Ukrainian history text books. The chapter about these two centuries portrays Lithuanians only as invaders, but there were positive developments such as the introduction of Magdeburg
Rights [granting governing powers to cities] and other democratic principles,” she said. Borys Cherkas, a historian specializing in Ukraine’s 13th to 16th centuries, explained that this is due to the fact that “Soviet history considered Lithuanians only as invaders and the government hasn’t paid attention to change this vision of history in presentday textbooks.” Starting from the 14th century, Lithuanian princes occupied Kyivan Rus lands. After the Battle of Blue Waters in 1362, where Lithuania drove out the Golden Horde, Lithuanian rule was secured in Kyiv and a large part of present-day Ukraine that they didn’t leave until 1569, when the weakened Grand Duchy united with the Polish Empire. History book publisher Malikenaite is herself a part of Ukraine and Lithuania’s modern histories. Malikenaite came to Ukraine for the first time in 1979 as an exchange student at Kyiv National Shevchenko University studying Russian philology. As she was working on her postgraduate degree in the mid 1980s she became actively involved in the independence movement in Lithuania and Ukraine. Malikenaite was among the organizers of the independence protests for Lithuania’s
independence in Kyiv before the country regained its independence in March 1990, the first among the Soviet republics. “It was the time of true brotherhood. Ukrainians came to support the independence movement in Lithuania and we encouraged Ukrainians to fight for its independence also,” she said. Having taken the stage during the protests, she urged Lithuanians in Ukraine to unite, which laid the foundation of the union of Lithuanians in Ukraine that gathers around 8,000 Lithuanians that live in the country. While their life stories vary, most of them came to Ukraine during the Soviet times, either after being released from the labor camps in Siberia, through intermarriages or for work. Renting a tiny office at the dilapidated Pressa Ukrainy government publishing house, Malikenaite is now working on a new series of books that describe Ukraine’s traditions and landscapes. She boasted that none of the articles about restaurants or hotels in the guides were paid for, as often happens in Ukraine for “reviews” of establishments. When asked about which of her books was most popular In Lithuania, she said that her compatriots mostly buy up her Crimean guide books.
While hundreds of thousands of Ukrainians use Skype every day, few know that it was invented by fellow Eastern Europeans from Estonia in 2003. Although the ownership has never been in the hands of “a Silicon Valley on the Baltic Sea,” Skype Group is still headquartered in Tallinn and has more than 120 million users worldwide. While Skype was created by the Estonian developers Ahti Heinla, Priit Kasesalu and Jaan Tallinn, who were outsourced by Swedish-born entrepreneur Niklas Zennström and the Dane Janus Friis to save on costs, it’s now Estonians who outsource, often in Ukraine. “Estonia is a few steps ahead of Ukraine in terms of development of Internet technologies, but when it comes to solving a task that doesn’t require advanced technologies, we outsource to Ukrainian programmers. It’s cheaper and we don’t lose in quality at all,” said Oleksandr Vlasov, the Tallinn-
born owner of Vortex InterCom, webresources developer in Kyiv. Coming from a Ukrainian-Estonian military family, Vlasov moved to Ukraine in 2005 to open up his company that creates corporate websites, portals and online media in Ukraine. He said that the Estonian market has become saturated, while Ukraine, despite steep competition, is an “unplowed field” in terms of offering IT services. Estonia’s road to success in technology started in 1996 when the government launched Tiger Leap national program that boosted Estonia’s IT knowledge by educating teachers in IT and providing infrastructure and computers to schools. “By now, 90 percent of Tallinn is covered with free Wi-Fi Internet and 95 percent of Estonians use Internet at home,” said Jaan Hein, Estonia’s ambassador in Ukraine. Apart from that, Estonia has introduced electronic governance Æ23
A waitress smokes outside the Ukrainian restaurant in Tallinn, the capital of Estonia. (Oksana Grytsenko)
www.kyivpost.com
March 25, 2011
Lifestyle 23
Baltic ambassadors urge Ukraine to join European Union
The town of Parnu on the Baltic coast in Estonia is a popular holiday destination for locals and foreigners. (Oksana Grytsenko)
Banking provides firm ties to Latvia Money seems to have become the strongest connection between Ukraine and Latvia. Out of 33 foreign banks working on Ukraine’s market, nine come from Latvia, which is known to be the most active banking transactor in the Baltics. Moreover, Ukrainian Privat Group owned by Igor Kolomoisky has its own chain in Latvia based on the Latvian Paritate Bank bought in 2004. “Latvia now plays the role of a financial bridge between the East and the West, connecting them together,” said Evgenia Litovchenko, 35, president of Baltic International Bank in Ukraine, which started working on Ukraine’s market in 2008. “We have Western standards and state guarantees, but understand the Ukrainian mentality and speak the same language,” she added. Having visited her ethnic motherland 10 years ago, Litovchenko, who was born in Riga in a military family that was sent to serve in Latvia after World War II, fell in love with Kyiv’s ancient spirit and beautiful churches. So when the opportunity presented itself to open a Ukraine office of International Baltic Bank, a boutique bank that manages the assets of the wealthy, she didn’t hesitate to agree, especially as she knew that her bank would offer something new to the Ukrainian market. “We offer everything from giving
ÆOut of 33 foreign banks in Ukraine, nine come from Latvia. access to our clients to the closed clubs to buying property and luxury,” said Lytovchenko. Latvian banks, which have been popular with Ukrainians during the last decade due to the country’s liberal banking legislation, have lost some of their allure due to the crisis and tighter regulations imposed by the European Union , according to Dmitry Cherniavsky, financial specialist at Tax Consulting U.K. Yet there are still some attractions, Lytovchenko is convinced. “We also can help our clients to receive temporary residence in Latvia,” she said. From July 2010, foreigners who invest more than $35,000 in Latvia’s business, bank or real estate can apply for a residence permit for five years, which for many Ukrainians equates to at least a five-year Schengen visa. Kyiv Post staff writer Katya Grushenko can be reached at grushenko@kyivpost.com
Estonian Ambassador Jaan Hein “Estonia advises Ukraine on reforms. We are an example of a successful state. In the 1990s, we went through the reforms that Ukraine needs to undergo, taking Sweden and Finland as our examples. I know that reforms are painful, but if you want to cut a finger, you should do it at once. Ukraine needs to undergo rapid and painful changes to be better off later on. Also government needs to clearly explain the population why they do these reforms. This is the only way to avoid massive protests. “Estonia also understood that the best way to save costs and bring transparency to our government is though electronic governance. For example, any Estonian now could file a tax declaration in 20 minutes on the Internet without lines, multiple copies of the same document, which practically eliminates the possibilities for bribes. Pension reform was one of the most painful reforms. We started it in 1992 with equally small pensions for everyone. It’s now that we really feel the fruits. We raised the pension age. Estonian women retire at the age of 57 years old and men at 62 years old. “The oldest Estonian settlement in Ukraine dates back 150 years. Estonians came here to develop lands given by the Russian Empire. There are still two ‘Estonia villages’ in Crimea where around 120 ethnic Estonians live and grow vegetables.”
Latvian Ambassador Atis Sjanits “If Ukraine wants to be a well-off country, reforms are the only remedy. The longer you wait, the more difficult it will be. Many countries underwent these reforms. There is no need to re-invent the wheel for Ukraine, just take their experience and apply without any delay. For the four years I’ve been serving in Ukraine, this is the first time that I see a strong will for reforms, but it meets strong opposition. Almost every second person that I meet here either underwent his military service in Latvia, has relatives or friends in coun co untr tryy. After Aft After er Cyprus Cyp Cypru russ and and Russia, Russ Ru ssia ia,, ourr country. tv via is the third country coun untr tryy where where wh erre Latvia rainians invest. In 2007 20 007 7 Ukrainians tv via invited Ukrainian Ukraini nian an n Latvia ecialists, mostly in n specialists, pbuilding to work wo ork shipbuilding ally in our cou unlegally councrr itry. With the crid sis, the demand c ame lowe e r, became lower, plan tto o butt we plan i te m orr e invite more rain ra in n ian ian ia Ukrainian professionals er our our after econo m y ov r e c ov e r s re.” re .” more.”
Lithuania at a glance
Ukraine IT specialists sought internationally Æ22 that allows everything from signing a contract with an international corporate partner to paying a traffic fine or filing a tax declaration online. “E-governance has practically eliminated corruption in the country,” Hein added. With 40,000 IT specialists who provide services abroad, Ukraine is the world’s top 10 IT outsourcers, according to the association IT Ukraine. Yet very few ordinary Ukrainians feel that IT has made their lives easier because of weak legislation, according to Igor Mendzebrovski,
country manager of Itera Ukraine, a Norwegian IT company that outsources in Ukraine. “We need to introduce electronic signatures, laws on protection of personal data and so on, but so far we don’t have a strong politician who would be interested in promoting it,” said Mendzebrovski. “Unfortunately Ukraine’s government has a very low level of Internet education, for them Internet is just dabbling,” explained Vlasov why the country that has numerous talented programmers lags behind in internet development itself.
Capital: Vilnius Population: 3.5 million GDP per capita (PPP): $15, 900 in 2010 Ethnic groups: Lithuanian 84%, Polish 6.1%, Russian 4.9%, Belarusian 1.1% Ukraine-Lithuania relations • Bilateral trade turnover $1 billion in 2010, 55% increase from 2009 • Export from Lithuania to Ukraine: oil products, electronic devices, timber, textile • Export from Ukraine to Lithuania: sunflower oil, furniture, steel • Lithuanian investment in Ukraine: $100 million • Lithuanian embassy issued 51,000 visas for Ukrainians in 2010 Sources: Lithuania embassy in Ukraine, CIA World Factbook
Latvia at a glance Capital: Riga Population: 2.2 million
Petras Vaitiekunas, Lithuanian Ambassador “Lithuania has been and continues to be Ukraine’s lobby in the European Union. We explain how important it is to have your country among our ranks, especially for the geopolitical stability. Lithuania also hopes for Ukraine to sign the free trade agreement as soon as possible. Lithuania has had rather active trade relationships with Ukraine. Now we hold free seminars across Ukraine’s regions on how to make Ukrainian goods of European standards. It should help Ukraine’s producers to see the future and also Lith Li thua uani nian an partners p par artn tner erss that that buy goods Lithuanian fro fr om m them. th heem. em. m from “I also hope that the relationship between our countries s o sh should rest up upon the h human valu the values, ues of the European civilization. The clashes of values cause wars in this region.”
per $14,300 in 2010 GDP G GD DP p DP pe er ccapita apitta (PPP): $14,3 api Ethnic groups: Russian Et Eth thnic th ni gr group oupss: Latvian 59.3%, Russ s 27.8%, Belarusian 3.6%, Ukrainian 2.5% Ukraine-Latvia relations • Ukrainians in Latvia: 60,000 • Bilateral trade turnover: $300 million in 2010 • Export from Latvia to Ukraine: pharmaceuticals, furniture, textile • Export from Ukraine to Latvia: metals, minerals, chemicals, machinery • Latvian embassy issue 20,000 visas for Ukrainians per year on average Sources: Latvian embassy in Ukraine, CIA World Factbook
Estonia at a glance Capital: Tallinn Population: 1.3 million GDP per capita (PPP): $19,000 Ukrainians in Estonia: 35,000 Ethnic groups: Estonian 68.7%, Russian 25.6%, Ukrainian 2.1%, Belarusian 1.2% Sources: CIA World factbook and the Baltic states embassies.
Compiled by Katya Grushenko
24 Lifestyle
March 25, 2011
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Podervyansky’s vulgar plays mock post-Soviet mentality ÆWriting full of vulgarity, insinuations and swear words made Podervyansky famous. But he considers himself a painter first.
BY S V I T L A N A T U C H YN S KA TUCHYNSKA@KYIVPOST.COM
Every modern take on famous Shakespeare plays comes with repercussions. So when Ukrainian writer Les Podervyansky turned Hamlet into an alcoholic psycho and his father into a gay man, he thought that this plot would only make for a fun read among his friends. He was wrong. The Dutch prince’s drunken exploits that sometimes take him to Ukraine became hugely popular in the late ‘90s, and Podervyansky’s readers demanded more. Texts full of vulgar references, insinuations and swear words on the subjects of post-Soviet realities in Ukraine and classic plays became his trademark. People were exchanging his tapes before Internet became widespread. Youth often quoted him, which was a rare and precious accomplishment for a contemporary writer. Fans of classical literature, however, blacklisted him in their own rankings for the use of philistine language and would have never thought his plays would make it onstage. More than a decade later, 57-year old Podervyansky has proved them wrong. On April 16, his play “Pavlik Morozov� will debut on stage of Kinopanorama movie theater. The writer adapted a Soviet story of a pioneer, Pavlik, who handed his father over to the authorities because he didn’t want to give up his possessions to the state. In turn, the 13-year-old’s family killed him. The boy’s name and his loyalty to the state were glorified by the Soviets and made into books, operas and plays but there’s not enough evidence that it ever happened. Podervyansky mocks this cult in his rendition of the play and spices it up with the strong language. “I don’t understand literature written in classic language, which people don’t really speak in everyday life,� said Podervyansky. “I also think that it’s a lot more interesting telling stories about real, not cardboard, people so that the audience can relate to it.� While some will find his plays disrespectful and rude, others praise it as
Playwright Les Podervyansky muses in his studio on the outskirts of Kyiv. (Joseph Sywenkyj)
a contribution to modern Ukrainian literature. “He turned slang into literature, using Soviet art as a background. And he did it brilliantly,� said Vira Aheyeva, the professor of philology in Kyiv Mohyla Academy. Podervyansky said that he first picked up a pen at the age of five when he drew a cartoon of his grandparents, depicted as devils. Born to a family of painters, Podervyansky studied in the National Academy of Fine Arts. He got more serious about writing when he served in the Soviet army in ‘70s. In letters to friends and family, he would describe his duties mixing humor and skepticism.
“The Soviet army taught you that life was absurd. And that is a very valuable lesson for an artist. Say, you come to an officer and ask: ‘Comrade, why are we doing this?’ And he replies: ‘You, idiot, don’t you understand that in the army everything’s upside down?’� said Podervyansky. To those critics who say he’s only popular because of his provocative style, he says “it’s not as easy as it seems.� His controversial stories don’t always mirror his personality. Despite having a reputation of a merry fellow, who enjoys partying with friends, women and swearing, in conversation he comes through as a gentleman who
loves debating about life and art and tell stories. “Once I had a plumber over fixing my toilet and afterwards I offered him a drink. We started talking, he told me about his life, and I realized that this man was not a plumber; he was an Odyssey [a Greek hero]. When something so different as the antique culture and a plumber come together, they clash. But at the same time there is no division between them; they are one,� he said philosophically. The author of 35 plays, short stories and two movie scripts, Podervyansky sees himself as a painter first and foremost.
His studio is stacked with canvases, old newspapers, magazine clips and photographs. With many of his works on display in Ukrainian and foreign museums, Podervyansky says he is never “running around� trying to sell them. “Paintings are like daughters who will get married some day, if they are not ugly and stupid.� With his first stage debut around the corner, Podervyansky is also looking into cinema. While his story about a spoilt girl under a working title “Vasha Halya Baluvana� is being translated into English, Podervyansky said he’s knocking on Hollywood’s door. Asked why he doesn’t seek sponsorship from the state, he said there was no use and suggested liquidating the ministry of culture. “A ministry is required only in the case if the country has a cultural policy, like France, which is fighting with Mickey Mouse and Hollywood in order to promote the French culture. But have you ever seen any cultural policy in Ukraine?� Available only in Ukrainian, his plays can be found on his unofficial web page at www.doslidy.kiev.ua and his paintings can be enjoyed in the State Museum of Ukrainian Arts and Museum of Russian Art in Kyiv. Kyiv Post staff writer Svitlana Tuchynska can be reached at tuchynska@kyivpost.com
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Matoshko: EU member Greece has much in common with Ukraine Æ19 Greece. To open a practice or start an engine in a cab, you need a license and only a limited number of people can get it. As workers rally and strike, government officials keep saying they are working to “open up” these sectors and others. Public servants employed in transport and health sectors also have taken to the streets in response to the recent austerity measures. Even though most of the population is affected by these work stoppages, civil workers carry on. They can afford to strike without fear of being fired. There are 700,000 of these public workers in Greece, and they make up nearly17.5 percent of the population. Corruption in Greece is not as widespread as it is in Ukraine, but in terms of politics, Ukraine and Greece have more similarities than differences. Both countries still live in the past. But while Ukraine has the excuse of spending most of the 20th century under totalitarian dictatorship, the Greeks can only blame their own choices and old-fashioned attitudes. Also, the church still retains a stronghold over society, slowing down progress. More evidence of Greek conservatism is its Papandreou family dynasty of prime ministers, started by Georgios Papandreou, who served terms between 1944 and 1965. Prime Minister George Papandreou, grandson of Georgios, is now taking back what his late father, Andreas, gave out with generous social policies. Andreas served two terms as prime minister, from 1981-1989 and again from 1993-1996. While greatly improving the welfare of the population, the handouts also plunged the country deep into debt.
Of course, standards of living are higher overall in Greece, and Ukrainians have it harder on many counts. Ukraine’s minimum wage and pensions are much lower than in Greece, while the working hours are much longer. But there is one major thing which puts Greece way ahead of us: They are a part of the Schengen, European visa-free zone. They can go for a trip to London on a whim, study in France or apply for work in the United States without a major bureaucratic hassle. Ukrainians have to “fight” for every visa to travel nearly anywhere and are often treated as second-rate people in the fancy European embassies, including the Greek one. Of course, it’s not all about EU membership, which is a mixed blessing. It’s about respect and human rights. The fact that some countries put up a virtual “wire fence” to keep out some nations, whose country they can visit anytime and without a visa, is quite frankly degrading. As for Ukraine, will it always remain a buffer zone between Russia and the EU? Or will it one day make its own choice and emerge as a truly independent country? I sure hope it achieves real independence. But for that to happen, a wholesale change in attitudes has to take place first. The ongoing crisis puts the integrity of the EU to the test. It’s time for countries such as Ukraine to make a stand. So far, unfortunately, my homeland has been heading rapidly in the opposite direction. Alexandra Matoshko is the former lifestyle editor of the Kyiv Post and is now living in Athens, Greece.
Lifestyle 25
Some models make only $50 per show Already ready in Milan, she you are paid $150 per hour of Æ19 Alr had to loo ok for work with posing. At the end, you can look fashion hou uses. The receivcount only on $45.” houses. ing agencyy would send In Asia, the situ uation is situation her to ever ry casting they better than in Europe, every wanted and even if she had Ukrainian mo dels say. models eight to 10 castings a day, Agencies charg ge less – charge no one care ed how tired or some 35-50 pe ercent of cared percent hungry she was, rememyour earnings, and a there bered the model. m is more work. Som me counSome “Sometim mes up to tries offer modelss a fixed “Sometimes 200 girls ar re waiting in payment of $1,0 000 per are $1,000 line since early e mornmonth, but if th hey earn they ing. You can n’t say ‘no’ more, they can’t ke eep it. can’t keep unless you’r re very sick “Make sure you put a lot you’re and you ca an’t be late; of makeup on if yo ou cast in can’t you otherwise, you’ll y get fined Asia,” said Geshe eva sharGesheva because it’ss all in the coning her experienc ce about experience tract,” explai ined Gesheva. China. “All Europe eans look explained Europeans A model can’t c lose or gain the same to them m so it’s weight duri ing the term of important to sta and out. during stand the contract t. “You can add Also if they shoo ot you for contract. shoot up to two ce entimeters, that’s a magazine, yo ou probacentimeters, you it. But it’s better not to bly won’t get p paid at all mess with your size, or because they y are givyou’ll be fi ined or even ing you a vvery nice fined sent back home.” h If a picture ffor your model fails to t get a job lookbook lookbook.. Why with a fashi ion house bother pay ying?” fashion paying?” in the first firsst three h model French weeks, the agency said that Dieng said will send he er back her foreign models home. get treated don’t get Gesheva was thaat. “You like that. lucky and got a always have job but stil ll not cho oice and still a choice much mo oney alwayys get money always since the ag genagenpaid. Your Ukrainian model Olga cy claim ed fligh hts and claimed flights Gesheva. (Courtesy) nearly 6 60 acccommo accommo percent of her h income. “Say “SSay
ÆModels can not lose or gain weight during the term of the contract, otherwise they will get fined dation are not your problem.” But at the same time there is a price to pay for many of them, no matho popular they are. “I am single ter how l and lonely,” said supermodel Dieng whose face often graces popular fashm ion magazines. “I travel, I work all the time and I don’t get to see my family tw for two-three months. How can you mana to have a personal life living manage th like this?” Join Joining the modeling business is a risky affair – nobody knows the road ahead The job description may be ahead. simpl – walking up and down the simple catwa fully dressed or undressed – catwalk on a select few make their name but only fa recognizable in the industry. and face U In Ukraine, it seems, this road is thorn than in Europe. But the trick thornier is to not lose oneself in the run for fame and fortune. “Beauty withers with time, but what’s in your heart stays the same,” said Dieng. Kyi Post staff writer Yuliya Raskevich Kyiv b reached at Raskevich@kyivpost. can be com
26 Community Bulletin Board
Publication of items in Kyiv Post Community Bulletin Board is free of charge. The newspaper will print as many submissions as space permits, but notices must be no more than 30 words, except for the people in need section. Advertising of paid services or commercial ventures is prohibited in this space. Permanent items must be resubmitted every three months. Deadline for submissions is 3 p.m. Friday for the next issue. New listings are boldfaced. Please e-mail news@kyivpost.com or contact lifestyle editor Yuliya Popova at 234-6500.
Business clubs – 4 listings Î The Business-English Center meets on Sundays at 3 p.m. for a series of business English skills workshops. For more information, call Alex at 234-0871 or email: e-club@i.com.ua or visit www. etcentre.com.ua. Î A new gentlemen’s club is always open for well-educated, successful members (free admission) to combine establishing business relationships with unconstrained socializing. Please contact us: vadym_n@ukr.net, kobserg@yahoo.com, (067) 7406820 Sergio. Î The British Business Club in Ukraine meets every Saturday for business discussion and once every month for networking. Membership is by invitation only and is open to individuals and companies. Please email: administrator@bbcu.com.ua. Î Free English discussions about Internet marketing. Bold Endeavours, a British marketing and web development company, welcomes senior marketing managers/directors to an English language discussion group about search engines and Internet marketing at noon on the first Saturday of each month. Call 221-9595, or register online at www.bold.com.ua.
Public speaking – 6 listings Î Dnipro Hills Toastmasters Club would like to invite successoriented people to learn and develop public speaking, presentation and leadership skills. Join us Sundays from 10 to 11 a.m. at Kyiv Business School, 34 Lesya Ukrainky Street, metro station Pecherska. For detailed information, please, check our website www.dniprohills.org.ua Î EBA Toastmasters Club invites enthusiastic, goal-oriented people to learn and improve their communication and leadership skills in friendly learning and supportive environment. We meet every Monday at 7.30 p.m. at American Councils at Melnykova, 63. For more information, contact Svetlana Nesterenko at lana_svk@ukr.net or call 067 220 77 55. More information can also be found at: www. ebatmc.blogspot.com. Î Top Talkers Toastmasters Club is happy to invite ambitious and enthusiastic people to learn by doing. Together we will discover inner potential in public speaking and leadership in each of us. We meet every Tuesday at Kraft Foods, 23 Yaroslaviv Val St. at 7 p.m. Please check our website www.toptalkers.org Î American Chamber of Commerce Toastmasters Club invites English speaking business professionals to advance their presentation and communication skills in a friendly and supportive atmosphere. We meet each Wednesday at 7.30 p.m., at the Microsoft Ukraine office, 75 Zhylyanska St., Floor 4, Business Center Eurasia. To receive further details on the club and its membership, please contact our club vice president for membership, Anton Stetsenko at 093-609-5161. Î Kyiv Toastcrackers Club, a part of Toastmasters International, is a worldwide organization that helps men and women learn the arts of speaking, listening and thinking through effective oral communication. We invite new people to benefit from the meetings on Wednesdays, at 7 p.m. at the House of Scientists, 45a Volodymyrska St. For more information see www.toastcrackers.kiev.ua. Î Talkers Toastmasters Club invites those interested in improving their public speaking, communication skills, English and creative abilities to join its meetings on Saturday mornings at 11 a.m. Please, check club’s website at arttalkers.wordpress.com, call 096-565-6229 or e-mail: arttalkers@gmail.com
Religion – 8 listings Î Christ Church, Kyiv. We are the Anglican/Episcopal Church, serving the English-speaking community in Kyiv. We meet Sundays at 3 p.m. at St Catherine’s German Lutheran Church, 22 Luteranska Street, a five-minute walk from Khreshchatyk. Bible study on Tuesdays at 7.30 p.m. Please call Graham at 098-779-4457 for more information, www.acny.org.uk/8592. Î You are invited to the St. Paul’s Evangelical Church. Roger McMurrin is its founding pastor. Music for worship is provided by the Kyiv Symphony Orchestra and Chorus. Worship services are held every Sunday at 2:30 pm at the House of Artistic Collectives (Veriovka Choir Hall, 4th floor) at 50/52 Shevchenko Blvd. Call 2354503 or 235-6980. Î International Church, Kyiv. English and Spanish Bible study classes. We invite you to weekly services at 10.30 a.m. Saturdays at 13A Miropolskaya St. (metro Chernigovskaya, second stop by a tram Boichenka. Central entrance of two-story building). Telephone: 38-093-757-6848, 542-3194. Î Word of God Church offers Bible study every Sunday and Wednesday at 7 p.m. Sunday school, nursery for children. For more information call: 517-5193. Î International Baptist Church invites you to our English language worship services (Sundays at 10 a.m.). We are located near Vyrlytsya metro in the downstairs hall of Transfiguration Church, 30B Verbytskoho. http://livingvinechurch.googlepages.com. Î The Evangelic Presbyterian Church of the Holy Trinity invites you to our worship service, held in Ukrainian and Russian with simultaneous English translation. We meet each Sunday at 50-52 Shevchenka Blvd., #402 (4th floor). Worship begins at 11 a.m. Sunday school for adults begins at 9:45 a.m. Pastor Ivan Bespalov: tel. (044) 287-0815; (097) 317-9598; e-mail: ivanbespalov@gmail.com. Î Kyiv International Bible Church, an English-language evangelical nondenominational church meeting at 10:30 a.m. on Sundays at 34A Popudrenka, between Darnytsya and Chernihivska metro stops. Contacts: 501-8082, or kievIBC@gmail.com. Î International Christian Assembly meets at 57 Holosiyivska St.
Services are held every Sunday: 9 a.m. till 11:30 a.m. For further information contact: Paul, +050-382-2782, www.icakiev.com
Support groups – 6 listings Î Jimmy’s Psychology Club within the Center 'Australian Council in Ukraine' invites guests to our free problemsharing and counselling event every Saturday from 5 pm to 7 pm with qualified native speakers at 37Horiva St., Podil district (m. Kontraktova Ploscha). For more information, please contact us at steda@ukr.net or +050 568-8403. http://vkontakte.ru/club23571290 Î Divorce mediation, commercial mediation, consulting on diagnostics of conflict resolution in organization. Ukrainian Mediation Center, www.ukrmedation.com.ua Please contact Oksana Kondratyuk: 066-758-66-44, delo2@i.ua. Î Individual consultations, psychological support in divorce, family relations, stress management, health issues, relaxation, selfesteem, personal development. Call Elena: 097-294-6781. Î Alcoholics Anonymous English-speaking group meets Saturday/Sunday at 12.30 p.m. and Tuesday/Thursday at 7 p.m. at various locations. Contacts: aakyiv@ukr.net, 096-460-0137 (friend of Bill) for details of meeting location. Î Counseling/advising in relationships, personal growth, body/ mind/spirit matters. Well-known Ukrainian psychologist counsels expats in English and French in the center of Kyiv (Lyuteranska). See www.hohel.kiev.ua or call 050-595-3686 between 3 p.m. and 5 p.m. Î Individual psychological counseling for Russian and English speakers. Family issues, mood disorders, anxiety, depression. Psychological Rehabilitation & Resocialization Center. Call Elena Korneyeva, 050-573-5810, between 10 a.m. and 6 p.m., or e-mail: kornyeyeva@rambler.ru.
International clubs – 12 listings Î French speaking Club “Langue de Moliere” welcomes its members in cosy and charming atmosphere of BABUIN Café. We meet every Saturday at 1 p.m. at 10 Simona Petliury (former Kominterna) Street, admission is free. For further information please visit our Facebook profile or call 068-351-0427, 093-244-0920. Î Mike’s English Literature and Poetry Club within the Center ‘Australian Council in Ukraine’ invites guests to our free event every Wednesday from 4 pm to 5.30 pm with qualified native speakers at 37 Horiva St., Podil district (m. Kontraktova Ploshcha). For more information, please contact us at steda@ukr.net or +050 568-8403. http://vkontakte.ru/club23571290 Î Free admission for foreigners to “Russian Speaking Club” on Saturdays, 15.00 in Kiev city center. Call Yana (095897 01 55) to ask for details or go to www.russianclub.com.ua Î Stolypin Club (Kiev) meets every third Wednesday of every month at 7 p.m. at various locations. It is a non-profit public organization uniting Kyiv’s citizenry, including prominent business representatives, politicians and the liberal professions. The club is private, but opens its doors and its spirit to the wider community, affording the public a chance to partake in certain events alongside club members and guests. Please contact Tamara Avdeyeva at 096-4624646 or assistant@stolypinclub.org. Î Welcome to the friendly atmosphere of a French-speaking club. We meet once weekly on Saturdays or Sundays for conversation practice and movie sessions. Please contact Svetlana: 067-9071456 or email: consonance-s@ukr.net. Î Student Embassy Project invites students to join intercultural events in Kyiv, Lviv and Ternopil. The initiative is aimed at international students’ integration into Ukrainian society, youth leadership development, intercultural dialogue. To learn more please e-mail us at studentembassy@gmail.com or visit: http://studentembassy. org.ua. Î The Kyiv Rotary Club meets on Tuesdays at 7 p.m. at Andreyevsky Prichal restaurant, 6 Bratskaya Str. For more information, please contact Nataliya Rodovanskaya at 067-296-5672 or n_radov@yahoo.com. Î The International Women’s Club of Kyiv (IWCK) welcomes women from around the world to join our support network and participate in our extensive social and charitable programs. For more information, see our website www.iwck.org, call or e-mail the IWCK Program Coordinator Galina Timoshenko at 234-3180, office@iwck. org. Address: 39 Pushkinska, #51, entrance 5, door code 250. Î The Rotaract Club Kyiv meets on Thursdays at 7 p.m. at the Ukrainian Educational Center, Prospect Peremohy,#30, apt. 82. For more information, please email: president@rotaract-kyiv.org.ua or visit our website www.rotaract-kyiv.org.ua. Î Democrats Abroad Ukraine is the official organization of the Democratic Party in Ukraine; connecting Americans with U.S. politics and the Democratic Party; registering, informing, and motivating voters; supporting U.S. candidates, holding events, and fundraising. To join, email info@democratsabroad.org.ua. Î The Kyiv Multinational Rotary Club welcomes all Rotarians who are in Kyiv and new potential Rotarians. Our meetings are conducted in English and are held every Wednesday evening at 7 p.m. at the Radisson Hotel, Yaroslaviv Val St. 22. For a map and further information please consult our website at: http://kmrclub.org. Î The Kyiv Lions Club is one of 45,000 Lions Clubs around the world. We raise funds and provide services to help those most in need in our community by supporting charities in our chosen sectors of giving: children, the disabled, and the elderly. We meet on the second Monday of every month in the downstairs bar of the
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March 25, 2011
Golden Gate Irish Pub at 7 p.m. For more information contact Paul Niland at 044-531-9193 or paul.niland@primerosfunds.com.
People in need - 7 listings Î 9-year old Gleb Plisko suffers from epilepsy, and Cerebral palsy since birth. The boy needs urgently a bone orthopedic operation that will give him a chance of restoring some mental and orthopedic functionality. The surgical intervention costs Hr 54,120 and is to be done in a specialized hospital in Evpatoria. The boy's mother is his only supporter, and she hopes for your assistance. Contacts: Mother Natalia Subbotina - mob.tel +38 050 852-8529 Bank details for hryvnia transfer: OSCHADBANK ТОБО 39/098 ОКПО 02761766 МФО 384016 Р/С 290990952 Л/С И-28782 Bank details for dollar transfer: Beneficiary: Subbotina Natalia Valentynivna Account No.: 2620 7598520000/1025 Bank: OSCHADBANK Bank branch address: 95071, Sympheropol, 30/1 Sevastopolska St. Correspondent bank: Deutsche Bank Trust Company Americas, New york, USA SWIFT CODE: BKTRUS33 Account with institution: Acc. 04-095-334 SWIFT CODE: COSBUAUKCRI JSC Oschadbank Î Twenty-one year old Zhenia Anhel was diagnosed with myelomonocytic leukemia in early January. He is currently treated in the Hematology Department of the Kyiv City Hospital going through the first stage of chemotherapy. Zhenia’s relatives contacted several hospitals in Germany, Poland and Israel in hope to continue therapy abroad. The family needs to raise 100,000 euro for the therapy itself and another 150,000 for the bone marrow transplant. The Anhel family pleads for your support and is thankful for any contribution, however small. Contacts: Olena Betliy, Teacher, +38 095 137 7743, history.ukma@ gmail.com ; Egor Stadnyi, Student Committee Head, +38 096 905 5743, estadniy@gmail.com ; Iryna Ivanivna Yurechko, Deanery coordinator, (+38 044) 425-14-20; iriv@ukma.kiev.ua . Website: http://www.helpangel.com.ua/ Bank details for individuals: PrivatBank card: 4627087834471890. Account number (Hryvnya): 4149 6050 5082 6437 Account number(EUR): 5457 0820 5027 5655 Bank details for legal bodies (Hryvnya): Recipient: Privatbank Bank name: PrivatBank Account number: 29244825509100 МФО code: 305299 ЄДРПОУ Code: 14360570 Details of payment: charitable contribution to Anhel Mariya Mykolaivna for medical treatment of her son, Anhel Yevhen # 4627087834471890 Tax ID 1915922443 Bank details for legal bodies (USD): BENEFICIARY: Anhel Mariya Mykolaivna Relief Fund for her son Evhen ACCOUNT: # 26258614433539 BANK OF BENEFICIARY: PrivatBank Dnipropetrovs’k, Ukraine Swift code: pbanua2x INTERMEDIARY BANK: jp morgan chase bank Chase metrotech center, 7th floor Brooklyn NY, 11245 USA CORRESPONDENT swift code: chasus33 ACCOUNT: 0011000080 Bank details for legal bodies (EURO): BENEFICIARY: Anhel Mariya Mykolaivna Relief Fund for her son Evhen ACCOUNT: # 26258614433443 BANK OF BENEFICIARY: PrivatBank Dnipropetrovs’k, Ukraine Swift code: pbanua2x INTERMEDIARY BANK: jp morgan AG Frankfurt/main, Germany Swift code: chasdefx CORRESPONDENT ACCOUNT: 6231605145 Î Katyusha Larionova is only 4 years old. At the age of 1,9 she was diagnosed with neuroblastoma, 4th stage. Since that time her parents has been fighting for her life. She had been treated in Ukraine without success. Due support of many responsive people Katyusha had a complex surgery, chemotherapy, radiation and bone marrow transplantation in Singapore, and finally went into a remission stage. For 1,5 year Katyusha lived as a normal child, studied at development school. But in January 2011 metastases appeared in skull bones. Katyusha’s doctor in Singapore recommended a course of complex therapy, including chemotherapy, MIBG therapy, antibodies and repeated marrow ransplantation. To start the therapy is necessary as soon as possible. The cost of it is 87 thousand pounds sterling. Katyusha’s parents hope people help them to save their daughter. Details on Katyusha's condition you can find at: http://katyalariohelp.ucoz.ru/ , or http://www.donor.org.ua/index.php?module=hel p&act=show&c=1&id=746 Contacts: Larionov Dmitriy, father, +050 501- 9566, Larionova Alina, mother, +050 621-1207, e-mail:desk@list.ru Or donate in Hryvnia: Privat Bank Account #29244825509100 МФО: 305299
Code: 14360570 Details of payment: replenishment of the card # 4149625301417414 Receiver: Larionova Alina Vladimirovna 2926510426 Î Nastya Kotova, 15, has been diagnosed with acute leukemia. She had a successful bone marrow transplant in Israel two months ago. Nastya is in a relatively stable condition now for the first time in many months. A step away from recovery, she still has to go through a rehabilitation period. The Kotov family urgently needs $12,000 to continue the treatment. Please help save their daughter’s life. More information: http://www.donor.org.ua/index.php?module=help&act=show&c=1 &id=1170 http://fonddarina.com/ru/child/nastya-kotova?news#72 Contact Nastya’s volunteer, Iryna: 096-373-89-71. Bank details: Beneficiary: Kotova Olena Vasylivna (Nastya’s mother) Deposit money on a banking account: # 4405885014676768 PrivatBank Account #: 29244825509100 MFO: 305299 Code: 14360570 Î Maksym Nalivkin, 12 years old, needs your help. The boy had suffered from cerebral haemorrhage and further subarachnoid hemorrhage, which led to 3 brain surgeries and constant artificial pulmonary ventilation. Since March 2010 the boy has been held at the resuscitation department, for 2 months he’s been out of coma, there are slight positive changes that give hope. He still needs a long-term rehabilitation; however his family already spent their savings on treatment. In case you have any possibility to support them, Maksym’s family would much appreciate it. Contacts: Mother Elena Nalivkina - mob.tel.: +380 99 625-2475 Father Arkadiy Nalivkin - mob.tel: +380 50318-5499; tel: +380 552 22-2806; email: nag.box@gmail.com; skype: arkady_g.nalivkin; ICQ: 8423832 Webpage: http://nag.pp.net.ua/ Bank details for hryvnia transfer: Bank: Черноморское отделение Херсонского филиала «Приватбанк» МФО Code: 305299 ОКПО Code: 14360570 Account: 29244825509100 Purpose of payment: 4627085825848787, Nalivkina Elena Nikolaevna, ИНН: 2596602804 Multicurrency account (U.S. dollar, euro): BENEFICIARY: NALIVKIN ARKADYY, Kherson, Ukraine ACCOUNT: 2620001696644 BANK NAME: JOIN STOCK COMPANY "THE STATE EXPORT-IMORT BANK OF UKRAINE" (UKREXIMBANK), KHERSON BRANCH SWIFT: EXBSUAUXKHE BANK ADDRESS: 46, RADIANS'KA STR., KHERSON Maksym’s family also appeals for advice - any useful contacts of rehabilitation professionals, recovery programs, as well as charity organizations or grant programs for such cases. Î Two-year-old Vanya Chornozub from Kherson Oblast has brain cancer. Since no clinic in Ukraine was able to cure him, he has been transferred to Germany for further treatment. Due to the efforts of many people, two years of therapy brought very good results. Vanya is getting better. But his parents are very short of money to pay for further treatment. His parents appeal to anyone who can help support Vanya’s treatment. Contact person: volunteer Olga Kopylova: +380-67-234-1225 Webpage www.donor.org.ua/index.php?module=help&act=show& c=1&id=870 Details for money transfers: PrivatBank Account: 29244825509100 Bank branch location code: 305299 Code: 14360570 Details of payment: card replenishment: 4405885012914724, Chornozub À.À., support for son’s treatment Î Sofia Sydorchuk, 3,5 years old, needs your help urgently. The girl has recently been diagnosed with myeloblastic leukemia, she is in hospital, the intensive chemotherapy department. Sofia needs to undergo a course of medical treatment that consists of 4 blocks of chemotherapy (one block has already been done). It is difficult to determine the exact cost of the treatment at this stage; our best estimate is around Euro 200,000. After chemotherapy Sofia needs to move to a specialised rehabilitation clinic in Israel or Germany. Sofia’s family hopes for your support, each day they do treatment and tests. You can make a donation via one of the following options: (1) Donations made through a bank transfer Banking details for transfers in Hr: Beneficiary: ÀÒ “Ukreksimbank” Account: 2924902234 Bank of the beneficiary: ÀÒ “Ukreksimbank” MFO code: 322313 EDRPOU code: 00032112 Payment purpose: receipt of funds to the account of Sydorchuk D.V. 0001025541 (2) Donations via web-money Z351457992891 R639870369876 E252216931289 U585571766822 (For instructions on transferring the money via web-money please refer to: http://webmoney.ua/withdrawfunds/) Î The Down Syndrome Ukrainian Organisation gathers parents who have trisomic children, in order to help them raise their kids, and aims at changing the public perception of the disease. The Organisation is now opening a Center for Early Development of the Children with Down Syndrome in Kyiv. The association has recently launched the operation “Serebrenaya Monetka” (Silver Coin) in order to raise funds for the center. Transparent boxes have been displayed in the 100 branches of UkrSibBank (the subsidiary of the French BNP Paribas group) in Kyiv, in order to collect the small coins that everybody has in their pockets. All donations are welcome. Details can be found at http://www.downsyndrome.com.ua/; http:// www.ukrsibbank.com. The operation will end on March 19th. All the proceeds of the operation will be used to buy equipments and furniture for this Center.” Hryvnya account: BENEFICIARY: Vseukrainskaia Bkagodiyna Organizatsia Down Syndrome ACCOUNT: 26007265663400 MFO 351005 UKRSIBBANK
Appeal of the Ukrainian Red Cross Society Dear citizens! The most powerful earthquake and tsunami of the last years took place on 11th of March 2011 in Japan have resulted in death of thousands of people and more than 400 thousand evacuated. We appeal to you and everyone, who is not indifferent to humans’ distresses and suffering, to give a hand to the victims of the disaster. Your donations will be received by the Red Cross Society of Japan and used for providing the suffered people with support and assistance. You can transfer money to the following settlement account: Code 00016797 Recipient: National Committee of the Ukrainian Red Cross Society Settlement account #26005000041577 (in hryvna) Settlement account #26004000041578 (in USD) Settlement account #26003000041579 (in euro) in PAT “Ukrsotsbank” MFO 300023 Details of the payment: “Assistance for the earthquake victims in Japan” Even the smallest donation can save a life. Let’s don’t leave the victims of the disaster alone with their misfortune. Join our charity efforts! President
Usichenko I. G.
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Paparazzi 27
March 25, 2011
Kazim Mustehsan, the defense attache at the Embassy of Pakistan
From left: Iraqi Ambassador Shorsh Said, Algerian Ambassador Mohammed Bachir Mazzour and their Lebanese colleague Youssef Sadaka
Celebrating Pakistan Abid Hussain Junejo, treasurer and chief auditor at ISTIL Group (R)
Shalra Saleem Mela, the wife of Pakistan's ambassador (C), cuts the cake, watched by her husband Ahmad Nawz Saleem Mela and other guests. ,
Argentinean Ambassador Lila Roldan Vazquez de Moine (C)
Diplomats and lawmakers gathered at the Pakistani Reception House on March 23 to celebrate Pakistan Day. The holiday commemorates “The Pakistan Resolution” passed in 1940, when Muslims of the Indian subcontinent set out to create an independent state, a nation where they could live according to their religion and culture. That event laid the keystone for the state of Pakistan, established in 1947. The guests enjoyed Pakistani and Ukrainian snacks and a large cake decorated in the image of a Pakistani flag of a green field with a white crescent moon and a five-point star - the symbols of progress and light. The green stripe represents the Muslim majority in Pakistan, while the white line stands for other religious minorities. (Joseph Sywenkyj)
If you want Kyiv Post Paparazzi to cover your event, please send details or invitations to news@kyivpost.com or contact photo editor Yaroslav Debelyi at 234-6500
St. Patrick's Day in Kyiv
A couple parties in O'Briens.
Showman Ihor Posypaiko (C) plays beer checkers in Pivnaya Duma restaurant
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People wearing green seemed to have more fun than other pub crawlers in Kyiv’s many pubs on Saint Patrick’s Day. Many Irish and Ukranian partygoers painted a shamrock on their cheeks and hands in honor of bishop Patrick who used this leaf to explain Trinity to his fellow-pagans in Ireland in the fourth century. Beer was the drink of the night. Among other reasons why this holiday is gaining popularity in Ukraine is perhaps the fact that it coincides with the rebirth of nature. After a long and dreary winter, Ukrainians are impatient to greet spring. (Roman Hrytsenko)
Singer Arina Domski inspects the brewery.
28 Paparazzi
www.kyivpost.com
March 25, 2011
British opera star Tony Henry
Burns Night extravaganza
Scottish rock band Irish Celtic Brothers
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One of Ukraine’s largest charity galas took place on March 19 to raise funds for projects of the Kyiv Lions Club charity. Traditionally dedicated to Scottish poet Robert Burns, this year’s event also paid tribute to another iconic figure from the British Isles – Saint Patrick. More than 500 guests attended the black-tie function, which turned 16 years old this year. During the fine night of dining, opera tenor Tony Henry, band Gorchitza and Irish dancers, among other celebrities, entertained the guests. Proceeds collected from the charity auctions will be donated to worthy causes in Ukraine. In four previous years, some $370,000 was raised during the Burns Night party. (Yaroslav Debelyi)
Guests bid on photographs signed by celebrities.
More than 500 people attend the charity event.
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
Artist Oksana Mas
Masterpiece reborn in wooden eggs
Thousands of eggs depict images of modern sins.
An unusual mosaic panel is still a work in progress. Ukrainian modern artist Oksana Mas will represent Ukraine at Venice Biennale in June with the first part of a striking mosaic panel done in the image of the famous Renaissaince painting, the Ghent Altar. On March 19, Mas unveiled a part of her significant project made of wooden eggs, which are hand-painted with unique images of sins. More than three million eggs will be needed to complete the altar, which should be 92 meters tall and 134 meters long to resemble the original. From far away, one sees a picture of heaven on earth, but with a closer look, it becomes clear that heaven belongs to sinful mortals. People from across Ukraine and different social groups, including prisoners, take part in the project by painting the eggs, which by June will measure 6x6 meters. Mas estimates it will take six to seven years to complete the altar. (Alexey Furman)
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Kiyavia (4 Horodetskoho St.) Aerosvit Airlines Alitalia Austrian Airlines British Airways Lufthansa MALEV HUNGARIAN AIRLINES Ukraine International Airlines UT-air
Al Faro (49A Velyka Vasylkivska St.) Amber (30A Lesi Ukrainki Blvd.) Arizona Barbeque (25 NaberezhnoKhreshchatytska St.) ATZUMARI (17/52 Bohdana Khmelnytskoho St.) AutPab (3/25 Kominterna St.) Babuin (10 Kominterna St.) Babai beer Club (4 SoďŹ ivska St.) Baraban (4A Prorizna St.) Bar BQ (10/1 Horodetskoho St.) BeerBerry (17/52 Bohdana Khmelnytskoho St.) Belle Vue (7 Saksahanskoho St.) Belvedere (1 Dniprovsky Uzviz) Bierstube (20 Velyka Vasylkivska St.) Bochka Pyvna (3B Bohdana Khmelnytskoho St.; 19A Khreshchatyk St.; 128 Borshchahivska St.) Bohemia (62 Dmitrievska St.) "Blind Age" Sport Music Pub (15 Mala Zhytomyrska St.) Brasserie Jean-Claude (2 Besarabska Square) Bulvar Cafe/Shaliapin (44 Velyka Vasylkivska St.) Cabaret 'Paradise' (5-7/29 Taras Shevchenko Blvd. ) Ciro`s Pomodoro (12 Shota Rustaveli St.) Coffee Life (22 Yaroslaviv Val St., 40 Uritskoho St., 2 Turhenevska St.) Dim Kavy (15 Khreshchatyk St., Passage) Dom Bergonie (17 Pushkinska St.) DOUBLE COFFEE (42 Bohdana Khmelnytskoho; 34B Moskovskyi Avenue St., 6 Mykhailivska St.; 1/2 Konstantynivska St.) Dubki (1 Stetsenko St.) Dva Bobra (91 Komarova St., village Mila) ETNO (23A Prorizna St., 25 Pushkinska St., 8/14 Velyka Zhytomyrska St.) Fellini (5 Horodetskoho St.) Fish Market (24A Volodymyrska St.) Fluger (18D Artema St.) Fridays (5A Besarabska Square) Goodman Steak House (75 Zhylians'ka St.) Grandal (24B Polyova St.) Himalai (23 Khreshchatyk St.) IQ bar (25 L.Tolstogo St.) IL Patio (112 Saksahanskoho St., 5A Besarabska Square, 5/13 NaberezhnoKhreshchatytska St., 57/3 Velyka Vasylkivska St.) Izumi (24A Mykhailivska St., 46/2 Moskovska St.)
A.B.C.World Languages Center (23/35 Patrisa Lumumby St.) AC Legal Group (10 Grushevskogo St.) American Chamber of Commerce (12 Amosova St.) American Medical Center (1 Berdychivska St.) Beiten Burkhardt (38 Turhenivska St.) Belgravia Business Club (18/1G Prorizna St.) British Council Ukraine (4/12 Hrihoria Skovorody St.) Ciklum (12 Amosova St.) Clifford Chance (75 Zhylianska St.) DHL (9 Luhova St.) European Business Association (1A Andriyivskiy Uzviz) Global Logic (2/1 N.Grinchenko St.) Grant Thornton Ukraine (4A Dehtiarivska St.) Grata (9A Mykhailivskiy Lane) Hudson Global Resources (19/21E Nyzhniy Val) KPMG (11 Mykhailivska St.) Manpower Ukraine (34B Predslavynska St.) MBA Strategy (32 Bohdana Khmelnytskoho St.) SC Johnson (19B Moskovskiy Prosp.) Senator Apartments (6 Pirohova ST.; 62/20 Dmitrievska St.) Staff Service Solution (1-3 Frunze St.) Student Travel International (18/1 Prorizna St.) Ukraine-Europe Linguistic Centre (20B Kominterna St.) UkrAVTO (15/2 Velyka Vasylkivska St.) Ukrsibbank (14 Pushkinska St.) Via Kiev Lufthansa City Center (172 Horkoho St.) World Staff (21 Knyajiy Zaton St, of.579)
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John Bull Pub (36 Saksahanskoho St.) Kaffa (3 Shevchenko prov., 22 Saksahanskoho St.,5 Skovorody St.) Klovsky (16A Mechnykova St.) Korifey (6 Horodetskoho St.) Kraina Kavy (5 Spas'ka St.) La Bodeguita del Medio (21/20 Yaroslaviv Val St.) La Casa Del Habano (13 Klovskiy Spusk) Le Cosmopolite (47 Volodymyrska St.) Leonardo (2 Besarabska Square) Luciano (33V Dehtiarivska St.) Lun Van (26 Bohdana Khmelnytskoho St.) MaLLina (27B Sahaidachnoho St.) Marokana (24 Lesi Ukrainki Blvd.) Marmaris (40 Hlybochyts'ka St.) Mare Azzuro (1/10 Bankova St.) Metropolis (12 Amosova St.) Monako (20A Velyka Zhytomyrska St.) NatĂźrlich (3 Bohdana Khmelnytskoho St.) New Bombey Palace (33A Druzhby Narodiv Blvd.) News cafĂŠ (6 Hetmana St.) O’Brien’s (17A Mykhailivska St.) O’Connor`s (15/8 Khoriva St.) O’Panas (10 Tereshchenkivska St.) Oliva (34 Velyka Vasylkivska St., 25A Druzhby Narodiv Blvd., 5 Kominterna St.) Panda (76 Saksahanskoho St.) Panorama (3 Sholudenko St.) Pantagruel (1 Lysenko St.) Pizza Vezuvio (25 Reitarska St.) Planet-Sushi (68 Saksahanskoho, 12 Khreshchatyk St., 57/3 Velyka Vasylkivska St.,) Potato House (6/5 Mala Zhytomyrska St.) Repriza (40/25 Bohdana Khmelnytskoho St.; 38 Velyka Zhytomyrska St.; 26 Chervonoarmiyska St.) Route 66 (87/30 Zhylianska St.) Schnitzel Haus (51 Saksahanskoho St.) Shastra (126A Chervonozorianiy Prosp.) Shokoladnitsa (53/80 Saksahanskoho St., 48 Velyka Vasylkivska St., 1/2 Baseina St., 31/27 B.Khmelnitskogo St. 4 Lunacharskoho St., 33 Dniprovska Naberezhna, 12 Luhova St., 58/2A Artema St.) Shooters (22 Moskovska St.) Soho (82 Artema St.) Stina (2 Besarabska Square) Suare (11 Artema St.) Sunduk (22A Prorizna St.) Sutra Bar (3 TymoďŹ ivoi St.) Svitlytsia (13B Andriivskyi Uzviz) Teatro (53 Bohdana Khmelnytskoho St.) Tike (31A Sahaidachnoho St.)
Timeout (50 Horkoho St.) To Dublin (4 Raisa Okipna St.) Trans Force (34B Moskovsky Prosp.) Tsarske Selo (42/1 Ivan Mazepa St.) Under Wonder (21 Velyka Vasylkivska St.) Uruk (11 Yaroslaviv Val St.) Varenichna Pobeda (14 SoďŹ ivska St.) Verona Pizza (71E Konstantinivska St.; 1 Lv.Tolstogo St.) Videnski Bulochky (25B Sahaidachnoho St.; 14/1 Instytutska St., 14 Mechnykova St.; 1-3/5 Pushkinska St.; 107/47 Saksahanskoho St.; 34 Lesi Ukrainki Blvd.; 20 Esplanadna St.) Viola’s Bar (1A Taras Shevchenko Blvd.) Warsteiner Pub (4B Horodetskoho St.) Wolkonsky Keyzer (15 Khreshchatyk St., 5/7-29 Taras Shevchenko Blvd.) Yakitoria (27A Taras Shevchenko Blvd.; 27 Lesi Ukrainki Blvd.)
3PORT #LUBS 5 Element (29 Elektrykiv St.) Favorit (6 Muzeiniy Lane) Kiev Golf Center (20 Obolons'ka naberezhna) Kiev Sport Club (5 Druzhby Narodiv Blvd.) Planeta Fitnes (10 Kropyvnytskoho St.)
(OTELS Adria (2 Raisa Okipna St.) AttachĂŠ Hotel (59 Zhylianska St.) City Park Hotel (20A Vorovskoho St.) Diarso (5 Velyka Kiltseva Doroha) Domus Hotel (19 Yaroslavskaya St.) Express (38/40 Taras Shevchenko Blvd.) Gorniy Ruchey (66 Michurina St., village Gora, Boryspil region) Hotel Dnipro (1/2 Khreshchatyk St.) Hyatt (5A Alla Tarasova St.) Impressa Hotel (21 Sahaidachnoho St.) Intercontinental (2A Velyka Zhytomyrska St.) Kozatsky (1/3 Mykhailivska St., 2/32 Antonova St.) Kozatsky Stan (Boryspilske Shose, 18 km) Khreschatyk hotel (14 Khreshchatyk St.) Lybid (1 Peremohy Prosp.) Mir (40-richya Zhovtnya Av.) Opera Hotel (53 Bohdana Khmelnytskoho St.) Oselya (11 Kameniariv St.)
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President Hotel (12 Hospitalna St.) Premier Palace (5-7/29 Taras Shevchenko Blvd.) Radisson Blu (22 Yaroslaviv Val St.) Riviera (15 Sahaidachnoho St.) Rus (4 Hospytalna St.) Salyut (11B Sichnevogo Povstannia St.) Senator Apartments (6 Pirohova St., 62/20 Dmitrievska St.) Slavutych (1 Entuziastiv St.)
%DUCATIONAL ESTABLISHMENTS Business School MIM-Kyiv (10/12B Shulyavska St.) British skylines (16 Khreshchatyk St., 10G Larysy Rudenko St.) DEC school (19 Obolonska Naberegnaya) International Institute of Business (8A Brest-Litovskyi Highway) Kyiv International School (3A Sviatoshynsky Lane) Master Klass (34 Ivan Mazepa St.) Pechersk International School (7A Viktora Zabily St.) Runov school (30 Velyka Vasylkivska St.) Speak Up (14 Kotsiubynskoho St. 25B Sahaidachnoho St., 4 Lunacharskoho St., 136 Peremohy Prosp., 14 Vasylkivska St., 26 Lesi Ukrainki Blvd., 3-a Gryshka St.) Sterling Business School (7 Nesterivskiy prov.) The London School of English (39 Polytehnichna St.) Valerie’s school (14 Mykhailivska St.)
"USINESS #ENTERS Arena (2A Baseina St.) Artem (4 Hlybochytska St.) Cubic Cente (3 Sholudenko St.) Diplomat Hall (59 Zhylianska St.) Eurasia Ukraine (73-79 Zhylianska St.) Evropa (4 Muzeiniy Lane) Evropa Plaza (120 Saksahanskoho St.) GOOIOORD B.V. (34/33 Ivana Franka St., 36 Ivana Franka St.,11 Mykhailivska St., 52B Bohdana Khmelnytskoho St.) Horizon Park (12 Amosova St., 4 Grinchenko St.) Illinsky (8 Illinska St.) Khreshchatyk Plaza (19A Khreshchatyk St.) Kiev-Donbass (42/4 Pushkinska St.) Podol Plaza (19 Skovorody St.)
30 Employment
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The
One of Ukraine's top news sources, has an ongoing student internship program. We have openings for students who are:
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Our Global Business is now offering exciting opportunities for Commercial Trainees to join our Oilseeds operation in a number of our key European locations.
Commercial Trainee The Role At ADM, we actively foster employee development at every career stage. Our traineeship programme facilitates an understanding of all aspects of our business in preparation for a future management role in our Commercial team. During your development, you will spend time in at least two of our European locations (which could include Germany, Holland, Poland, Ukraine and the UK) following a structured learning plan, while gaining practical experience in the trading business. Throughout your traineeship, you will be provided support by a dedicated mentor from our senior commercial team. Your challenge will be to prepare yourself for further career advancement within the organisation by learning all facets of our Oilseeds trading business, including the development of customer needs, the financial implications of trading decisions, contract law and risk management. The program also includes cross-departmental exposure, allowing you to gain insight into commercial links with other business units.
The Requirements • A degree in a Business / Commercial discipline ideally with an agricultural focus. • Internship or some work experience up to two years ideally in commodity trading or production company. • Good communication and presentation skills; fluent in English, with German a strong asset. • Eager to work for a professional and international organization with a focus towards Trading coupled with a drive for success and continuous improvement. • Well developed personal skills: self motivated, result oriented, flexible, convincing, customer oriented, enthusiastic and a team player. • Willingness to travel and relocate We offer great career opportunities with a competitive remuneration package in a very international environment. Every day, the 29,000 people of Archer Daniels Midland Company (NYSE: ADM) turn crops into renewable products that meet the demands of a growing world. At more than 240 processing plants, we convert corn, oilseeds, wheat and cocoa into products for food, animal feed, chemical and energy uses. We operate the world’s premier crop origination and transportation network, connecting crops and markets in more than 60 countries. Our global headquarters is in Decatur, Illinois, and our net sales for the fiscal year ended June 30, 2010, were $ 62 billion. For more information about our Company and our products, visit www.adm.com. If you are interested in this position, please e-mail your application and your CV to Oleksandra.Gulakova@adm.com. For more information please call +38 048 7965722
www.adm.com
Ukrainian NGO with a grant from international donor invites applications for the positions
STRATEGIC PLANNING SPECIALIST Experience: At least five years of experience with methodological documents and legislation of Ukraine, strategic documents, involving use of Performance Program Budgeting method in the budgetary process, medium-term budget planning.
UTILITY ENTERPRISE PLANNING AND ENERGY COSTS MANAGEMENT SPECIALIST Experience: At least five years of experience in formulation of utility enterprise strategic documents, enterprise development business plans and drafting financial and economic justifications for such documents, planning and implementation of energy-efficient projects for a utility enterprise in the budgetary sphere.
ADMINISTRATIVE MANAGEMENT SPECIALIST Experience: At least five years of experience with methodological documents and legislation of Ukraine, budgetary process and the process of drafting and implementation of municipal strategic documents.
RECEPTIONIST For additional information about the vacancies, please refer to our web-site: www.ibser.org.ua (section “Announcements�)
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OPEN SOCIETY YOUTH INITIATIVE AND INTERNATIONAL RENAISSANCE FOUNDATION ANNOUNCE PROGRAM COORDINATOR POSITION
Starting date: June 1, 2011 Salary: competitive, commensurate with experience and results of interview. To apply, please send your resume (ĐĄurriculum vitae) and brief motivation letter in Ukrainian and English before April 15, 2011 to Khrystyna Basyliya (basiliya@irf.kiev.ua) with the subject line: “Youth Initiative Program Coordinatorâ€?. Applicants selected for an interview will be contacted by April 25, 2011.
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ADMINISTRATIVE/ FINANCE OFFICER in Kyiv for complex program implementation. Prior experience in financial and administrative management of internationally funded projects, including financial training and monitoring of implementing partners required. Fluent English, Russian, and Ukrainian required. Superior organizational and inter-personal skills needed. Office management experience advantageous.
IS LOOKING FOR A
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CVs and cover letters should be sent to jobs@drc-ukraine.org by 04/04/2011.
THE IDEAL CANDIDATE SHOULD: Have fluency in English, Ukrainian and Russian. Show good news judgment and have the ability to work quickly under deadline. Have experience in news editing.
Project management/Executive MINI
Please send CV, three writing or editing samples and an explanation of why you want to work for the Kyiv Post, one of Ukraine’s top news sources, to:
Brian Bonner, chief editor, Kyiv Post at bonner@kyivpost.com
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The International Renaissance Foundation and Open Society Youth Initiative seek a program coordinator, to be based in the Renaissance Foundation’s Office to co-ordinate the Youth Initiative’s work in Ukraine and neighboring countries. The Open Society Youth Initiative (OSYI) supports young people in their efforts to be agents of positive change and advocates for the full and effective participation of all young people in the political, social and cultural life of their communities. The Youth Initiative operates globally to identify opportunities and threats to open society values that are particularly relevant to young people making the transition from childhood to adulthood. While primarily focused on empowering youth directly through its operating and grant-making programs, the Youth Initiative is also exploring how it might develop a role in advocating for the adoption of sound national and international youth policies on behalf of youth. OSYI encourages members of the network of organizations associated to the Open Society Foundations to include youth as partners in their work and assists them in doing so. It sponsors an annual conference for staff of the Open Society Foundations and young activists to share skills and project ideas. The Open Society Youth Initiative’s Youth Action Fund (YAF) is a small grants program that supports projects proposed by individual young people who are interested in contributing to their communities and engaging their peers on open society issues. It is currently running in the Baltics, Jordan, Kyrgyzstan, Uganda, Moldova, Thailand and Serbia. For more on the Open Society Youth Initiative, visit its web-site (www.soros.org/ initiatives/youth).
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32 Photo Story
www.kyivpost.com
March 25, 2011
Backstage with Ukrainian models
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Style gurus and fashion addicts turned the former armory’s high-ceiling spaces into a catwalk during Ukrainian Fashion Week, which kicked off on March 16. For six days, Ukrainian designers and guests from Germany, Georgia and Belarus preached new trends for the coming autumn and winter seasons in Mystetsky Arsenal museum. The commotion backstage resembled a beehive (1). Dozens of models competed for space, mirrors, make-up artists, and simply air, which smelled of hairspray and perfume. Jittery backstage, they looked emotionless, confident and cold on the catwalk (4). For some of them it was a debut, while for others a regular working day. Nearly 50 designers presented new collections. Some of them stayed loyal to their customary colors and styles: Poustovit charmed with deep colors, Vozianov and Litkovskaya plunged into complex, multi-layered garments, and Anna Bublik presented another sensual and feminine collection. There were surprises as well: along with smoky eyes, Podolyan made his models wear smoky hair (2), while Alexey Zalevskiy planted twigs in his models’ coiffure (3). Photos: Courtesy, AP, AFP, Alexey Furman
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