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vol. 15, issue 39
Stacked Justice B Y G R A H A M S TAC K, PETER BYRNE A N D Y U R I Y ON YS HKIV STACK@KYIVPOST.COM, BYRNE@KYIVPOST.COM, ONYSHKIV@KYIVPOST.COM
To change the Constitution in a way that gives him and future presidents more power, President Viktor Yanukovych will benefit greatly from a friendly Constitutional Court that ratifies any new document. But have his supporters stacked the 18-member judicial body with Party of Regions supporters to ensure that the court sanctions whatever the Presidential Administration wants? That’s what it looks like after four new justices were sworn in by parliament on Sept. 21, only days after Ukraine’s Congress of Judges dismissed their predecessors who may have been obstacles to strengthening presidential power. The four replacements are seen as likely to favor the annulment of the constitutional changes agreed to in 2004 as part of a rushed compromise agreement ending the democratic Orange Revolution. The changes were adopted as demonstrators took to the streets to protest the Nov . 21, 2004 presidential vote rigged in favor of Yanukovych. Æ14
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President Viktor Yanukovych (second from left) shakes hands in this Aug. 17 photograph with close ally Volodymyr Kolesnichenko, head of Ukraine’s High Council of Justice, which appoints judges. Anatoly Golovin, also a close presidential ally who heads Ukraine’s Constitutional Court, is at left. Oleksandr Pasaniuk, head of the High Administrative Court, is at right. All three are recent appointees. (Mykhailo Markiv)
News Æ 2, 14 – 17 Opinion Æ 4, 5, 18
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Ukrainians will almost certainly get major changes to the Constitution, whether they want them or not, as President Viktor Yanukovych is determined to strengthen presidential powers. Four new appointments (shown at right) to the 18-member Constitutional Court give the president a commanding majority of loyal judges to ratify anything the administration wants, court watchers say.
U.S. ambassador: Kuchma charges about Gongadze ‘clearly absurd’ BY BRIAN BONNER BONNER@KYIVPOST.COM
U.S. Ambassador John F. Tefft categorically refuted accusations from Ukraine's ex-President Leonid Kuchma, who on Sept. 15 implied that the United States was behind the 2000 murder of journalist Georgiy Gongadze. “Such allegations are clearly absurd. The United States has consistently supported freedom of the press and rule of law in Ukraine and everywhere in the former Soviet Union,” Tefft told the Kyiv Post on Sept. 22. “As the Gongadze case enters the trial phase, we will continue to speak out in our efforts to ensure that those actually responsible for ordering his abduction and murder will be brought to justice and to support journalists everywhere who work to inform the public and expose corruption and injustice.” Tefft’s comments came amid a flurry of major developments this month in the 10-year-old murder of Gongadze, a hard-hitting journalist who was kidnapped, murdered and beheaded on Sept. 16, 2000. The nation’s highest officials at the time, including Kuchma, have been implicated in ordering Gongadze’s murder and involvement in the subsequent cover-up. Æ15 Oleh Serhiychuk
Tymoshenko ready for battle again Mykhailo Gultai
Natalia Shaptala
Mykhailo Zaporozhets
Business Æ 6 – 13
Employment/Real Estate/ Lifestyle Æ 19 – 29 Classifieds Æ 30 – 31
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September 24, 2010
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B Y K Y I V PO ST STA FF
Something in the morning papers had annoyed Yulia Tymoshenko. A steely glint flashed in her eyes as she reached for copies of two newspapers she said are controlled by the Party of Regions. She pointed to two articles that she said tried to portray her as “a has-been with no chance.” “They are trying to show that [the] opposition has died. … But I think a cross will be placed on someone else’s political career,” she warned in typically combative language. She was clearly referring to her rival, President Viktor Yanukovych. After her Feb. 7 election defeat in the run-off against Yanukovych and subsequent dismissal as prime minister, Tymoshenko is back in the position that many see as her strongest – that of fiery opposition leader. Æ16
2 News
SEPTEMBER 24, 2010
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September 24, 2010
Vol. 15, Issue 39 Copyright © 2010 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” Адреса видавця та засновника співпадають: Україна, м. Київ, 01034,
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Polish president will travel to Kharkiv to honor Soviet victims Poland’s new president, Bronislaw Komorowski, will visit Kharkiv’s memorial to victims of totalitarian regimes. The occasion is to commemorate the 1940 massacre of nearly 4,000 Polish officers at the hands of the Soviet secret police NKVD, according to the general consul of Poland in Kharkiv. The visit is taking place on the 10th year anniversary of the memorial’s founding. Komorowski will be joined by 300 relatives of the slain officers at a memorial mass and wreath-laying ceremony along with Prime Minister Mykola Azarov. Komorowski was sworn in on April
30 as Poland’s new president after defeating Jaroslaw Kaczynski, the twin brother of the late President Lech Kaczynski, who was killed in a plane crash in April while en route to an event to commemorate the Soviet massacre of 4,400 Polish officers in Russia’s Katyn Forest. In Ukraine, NKVD agents took the Polish officers from the Starobelsk camp near Kharkiv, shot them in the inner NKVD Kharkiv prison and buried their bodies near Pitykhatky village, outside of the city. Their actions were based on Soviet dictator Joseph Stalin’s signed approval to carry out Lavrentiy Beria’s proposal to execute all mem-
Sept. 25
Polish President Bronislaw Komorowski, front left, observes a minute of silence during a wreath-laying ceremony at the former Nazi concentration camp of Sachsenhausen, Oranienburg, Germany, Friday, Sept. 3. (AP)
ber of the Polish Officer Corps, dated March 5, 1940. Similar mass murders by the NKVD included 4,410 shot dead in Katyn
Forest, 6,311 in Ostashkovo Camp, both in Russia, as well as 7,305 in other camps and prisons in western Ukraine and western Belarus.
вул. Прорізна, 22Б Реєстрацiйне свiдоцтво Кв № 15261(3833ПР від 19.06.09. Надруковано ТОВ «Новий друк», 02660, Київ, вулиця Магнітогорська, 1, тел.: 559-9147
Media reports: Bribery, corruption trial of Ihor Zvarych, ex-Lviv judge, to finally start
Замовлення № 10-5938
Sept. 30
Аудиторське обслуговування ТОВ АФ “ОЛГА Аудит” Mailing address: 01034, Kyiv, 22B Prorizna Street Kyiv Post main number: 234-6500 Advertising: 234-6503 Subscriptions: 234-6503 Newsroom: 234-6300, 234-6310 Fax/Tel.: 234-3062 http://www.kyivpost.com Editorial queries: news@kyivpost.com letters@kyivpost.com Subscription queries: subscribe@kyivpost.com Advertising queries: advertising@kyivpost.com З приводу розмiщення реклами звертайтесь 234-6503
Former Lviv Appeals Court Judge Ihor Zvarych (R) during a press conference in Lviv on Dec. 9, 2008. (UNIAN)
The bribery and corruption trial of exLviv Appeals Court Judge Ihor Zvarych is slated to begin 11:30 a.m. in Kyiv Obolon District Court, according to media reports that cite anonymous sources. Judge Vladyslav Devyatko will preside over the preliminary hearing, according to Ukrainian media. The trial location, taking place outside of Kyiv’s central judicial districts, was chosen by the head of the Supreme Court, Vasyl Oponenko earlier this year. The Ministry of Justice would not say whether the trial will be open to the public. Meanwhile, Korrespondent magazine reported that Zvarych’s legal representative wouldn’t confirm or deny the information but said that the imprisoned judge’s relatives haven’t been able to see him for more than three months already. Prosecutors in December 2008 opened a criminal case on suspicion
that Zvarych had taken a $100,000 bribe. The next day, the offices and apartments of Zvarych and another seven court judges were searched. Some $1 million and Hr 300,000 were discovered at Zvarych’s home. He was arrested in Lviv on March 9, 2009. More than a year later, the case has still not gone to trial. Zvarych has denied wrongdoing and claimed he was framed. In June, when given the 70-volume, 600 page case against him, Zvarych allegedly gnawed and devoured the papers. He subsequently refused legal services from all of his lawyers. Should Zvarych be found guilty and sentenced to jail, it would be one of the few times that a corrupt judge has faced justice in Ukraine. More broadly, few if any of the nation’s most serious crimes have been solved or injustices rectified in its independent history.
Відповідальність за зміст реклами несе замовник
Farmers' markets will be open throughout Kyiv this weekend Sept. 25
All of Kyiv’s 10 city districts will host farmers markets this weekend where customers will be able to buy directly from producers at 10-15 percent cheaper than market prices, the Kyiv City State Administration announced. Fresh produce will include meat, dairy and fish products as well as fruits, vegetables, flour, grain, sugar and other groceries. District
Address
Holosiyivskiy
31-a Hlushkova Prospekt
Darnytskiy
along Revutskiy Street
Desnianskiy
along Saburov Street
Dniprovskiy
on Pratsi Boulevard
Obolonskiy
23-43 Obolonskiy Prospekt
Pecherskiy
along I. Kudri Street
Podilskiy
5-11 Pravda Prospekt
Sviatoshynskiy
along Pryluzhna Street
Solomyanskiy
5 Puliu Street
Shevchenkivskiy
1-17 Vorovskiy Street
Egg producers show off their goods at an agricultural exhibition in this file Feb. 2009 photo. (UNIAN) Compiled by Mark Rachkevych
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European Business Association News
,EADERS 4ALK
Leaders Talk: Hans Grisel, CEO & Country Manager at ING Bank and EBA Board Member
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FTER YEARS WITH ).' "ANK AND A CAREER WHICH HAS MOVED BETWEEN THE .ETHERLANDS 3INGAPORE AND *APAN (ANS ARRIVED IN +IEV THREE YEARS AGO TO TAKE UP HIS CURRENT POST AS #%/ AND #OUNTRY -ANAGER AT ).' "ANK 5KRAINE 3UPPORTED BY HIS WIFE AND THREE SONS (ANS HAS BEEN A HUGELY ACTIVE MEMBER OF BOTH THE INTERNA TIONAL AND BUSINESS COMMUNITIES HERE AND A DEDICATED AND INFLUENTIAL MEMBER OF THE %"! "OARD 3O BEFORE HE LEAVES FOR A NEW POSITION IN -OSCOW THE %"! CAUGHT UP WITH (ANS TO ASK ABOUT LIFE IN 5KRAINE
(!.3 'RISEL #%/ #OUNTRY -ANAGER AT ).' "ANK AND %"! "OARD -EMBER
LEARNS FROM ONElS MISTAKES AND ALSO IN THAT ONE CAN BE CERTAIN THAT THESE THINGS MOVE IN CYCLES AND THAT ALSO THOSE CLIENTS THAT HAVE BEEN AFFECTED WILL RECOVER AND WILL THEN STILL BE OUR CLIENTS 4HAT HAS BEEN THE MAIN THEME FOR US TO PRESERVE THE FRANCHISE AS WELL AS WE CAN AND TO CONTINUE TO SUPPORT OUR CLIENTS 7HY DID YOU DECIDE TO JOIN THE %"! AND SIT ON THE %"! BOARD 4HE %"! IS ONE OF THOSE ORGANISATIONS WHICH A BANK LIKE OURS MUST BE A MEMBER OF THERE IS SIMPLY NO WAY THAT WE COULD NOT BE 7HY DO ) SERVE ON THE "OARD 4HAT IS A VERY GOOD QUESTION ) THINK IT IS PARTIALLY EXHIBITIONISM PARTIALLY AMBITION PARTIALLY HAVING VERY KINDLY BEEN ASKED BY !NNA $EREVYANKO TO CONSIDER THIS PARTIALLY THE GOOD COMPANY PROVIDED BY THE OTHER BOARD MEMBERS "UT MAINLY IT IS BECAUSE ) BELIEVE THAT ).' HAS A LOT OF IDEAS AND PRACTICES THAT ARE WORTH SHARING AND BY BEING ON THE "OARD ) CAN MAKE A CONTRIBUTION TO THE POSITIVE DEVELOPMENT OF THE INVESTMENT CLIMATE IN 5KRAINE
!S AN %5 CITIZEN WHAT ROLE WOULD YOU LIKE TO SEE THE %5 PLAY IN 5KRAINElS DEVELOPMENT ,ETlS START AT THE BEGINNING 7HAT WERE YOUR FIRST IMPRESSIONS OF 5KRAINE AND OF THE BANKING 4HE ROLE OF A FRIEND (ONEST SINCERE AND ALWAYS SECTOR BUSINESS ENVIRONMENT HERE THERE TO HELP WHEN IT IS NECESSARY -AYBE SOME GENTLE ) ARRIVED IN !UGUST AND THINGS WERE CRAZY COACHING AS WELL IN SOME AREAS LIKE TRAFFIC SAFETY BUT 0EOPLE WERE CONSTANTLY LEAVING THE 0&43 WAS NOT TOO MUCH GOING UP RENTAL PRICES WERE GOING UP AND SALARIES 9OUlRE FAMOUSLY OPTIMISTIC ,OOKING AHEAD WERE GOING UP ALMOST ON A DAILY BASIS )N TERMS OF WHAT ARE YOU MOST OPTIMISTIC ABOUT IN 5KRAINE BANKING EVERYBODY HAD ACCESS TO CHEAP FUNDING !ND IS THERE ANYTHING YOUlRE PESSIMISTIC ABOUT AND EVERYBODY WAS LENDING FUELLING THE BOOM (A HA IF YOU PUT IT LIKE THAT ) MUST ASSUME THAT ) .OW YOUlVE BEEN HERE THREE YEARS WHAT HAS HAVE LOST ALL CREDIBILITY BY BEING TOO OPTIMISTIC "UT CHANGED AND DID YOU NEED TO CHANGE YOURSELF YES ) AM QUITE OPTIMISTIC AND MOSTLY ABOUT 5KRAINElS 4HE SITUATION HAS OF COURSE BECOME MUCH CALM YOUNG GENERATION 4HEY HELP THIS COUNTRY GROW AND ER 4HE BOOM HAS BEEN FOLLOWED BY THE BUST AND DEVELOP WITH A GOOD SENSE OF HUMOUR WITH A SMILE WE ARE STILL LICKING OUR WOUNDS &ORTUNATELY THINGS BUT ALSO WITH A LOT OF AMBITION AND DETERMINATION ARE STABILIZING NOW )N TERMS OF CHANGE ) THINK THE 4HIS IN COMBINATION WITH THE IN MY VIEW CREDIBLE WHOLE WORLD HAS CHANGED )T IS A DIFFERENT PLACE EFFORTS OF THE GOVERNMENT TO IMPROVE THE INVESTMENT FROM WHAT IT WAS THREE YEARS AGO ) AM SURE IT WILL CLIMATE REDUCE BUREAUCRACY IMPROVE LEGISLATION PICK UP AND START GROWING AGAIN BUT ) THINK THIS 4HIS IN MY VIEW BODES VERY WELL FOR THE FUTURE FINANCIAL CRISIS WILL LEAVE SOME NASTY AND LONG LAST 0ESSIMISTIC .OT NOW BUT ) WOULD BECOME RATHER ING SCARS 7ITH REGARDS TO MYSELF ) HAVE CHANGED PESSIMISTIC IF AFTER A WHILE THIS SAME GOVERNMENT IN THE SENSE THAT AFTER SOME INITIAL APPREHENSION ) STOPPED PUSHING THE REFORM AGENDA )T WOULD WASTE NOW FEEL VERY COMFORTABLE IN 5KRAINE +IEV IS ACTU WHAT REALLY IS A GOLDEN OPPORTUNITY TO PUT THIS COUN ALLY A VERY NICE PLACE TO LIVE AND WORK AND ) AM TRY ON A VERY DIFFERENT TRAJECTORY SURE ) WILL MISS IT A LOT WHEN ) WILL LEAVE
7HAT WILL YOU MISS MOST ABOUT WORKING AND LIVING IN 5KRAINE (AS THE FINANCIAL CRISIS OVER SHADOWED YOUR TIME HERE OR MADE IT MORE INTERESTING %XACTLY WHAT ) DESCRIBED BEFORE THE OPTIMISM OF THE YOUNGER GENERATION AND THE ABILITY TO pEVEN IF 4HE GLOBAL FINANCIAL CRISIS FORCED ).' TO ABAN ONLY A TINY LITTLE BIT HELP SHAPE THE DEBATE DON A NUMBER OF GREEN FIELD PROJECTS INCLUDING OUR 7HAT ADVICE DO YOU HAVE FOR YOUR SUCCESSOR AT 2ETAIL START UP IN 5KRAINE 4HIS WAS SAD AND WE STILL REGRET THIS ON A DAILY BASIS /N THE CORPORATE ).' OR FOR ANY OTHER MANAGER ARRIVING IN 5KRAINE SIDE BEING A BIT MORE EXPERIENCED AND HAVING *UST LET IT HAPPEN )T IS A FANTASTIC PLACE MOVED AROUND DOES HAVE ITS ADVANTAGES IN THAT ONE
4HINGS TO KNOW Digital Agenda: European Commission outlines measures to deliver fast and ultra-fast broadband in Europe Three complementary measures to facilitate the roll out and take up of fast and ultra-fast broadband in the EU were adopted by the European Commission on 20 September. The measures aim to help the EU realise commitments made in the “Digital Agenda for Europe� and to give every European access to basic broadband by 2013 and fast and ultra fast broadband by 2020. Installing a broadband infrastructure in Europe is essential for creating jobs and prosperity. As Neelie Kroes, Vice President of the European Commission for the Digital Agenda said "Fast broadband is digital oxygen, essential for Europe's prosperity and well-being. These measures will help to ensure that Europeans get the first-class internet they expect and deserve, so that they can access the content and services they want". The Digital Agenda sets ambitious targets for broadband, ensuring by 2013 basic broadband coverage for all EU citizens and, by 2020, fast broadband coverage at 30 Megabits per second available to all EU citizens, with at least half European households subscribing to broadband access at 100 Megabits per second.
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EBA Schools are special educational projects aimed at professional staff who would like to increase their understanding and skills and to develop both personally and professionally. They include Personal Assistant, Human Resources and Public Relations schools in Kiev, a Human Resources school in Lviv and a Business English school in Odesa. Usually classes are held on monthly basis and take place in the EBA offices. The schools are open to all employees of EBA member companies and, with their growing popularity and success; we hope to increase the range of topics on offer. As one student recently commented “their practical value is enormous. The last class devoted to effective telephoning was extremely interesting and useful!� If you would like further information on the range of EBA Schools or you are interested in joining the EBA – please email office@eba.com.ua or find us online at: www.eba.com.ua.
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*O 'PDVT $VTUPNT EU-Ukraine Meet to Discuss Customs Regulation
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• Increasing customs valuations • Abuses of power within the customs service when determining customs value • The functioning of a ‘risk criteria’ database • The absence of an exhaustive list of documents
which customs officials may request. • The classification of goods • An inclusion of royalties into the customs value • Cargo handling/unloading • Post clearance procedures
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View from the EBA Consumer Electronics Committee
A
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Also commenting on the situation, an EBA member who wished to remain anonymous explained how customs problems were affecting his business: “Currently, Customs clearance procedures are completely non-transparent. This means that you never know what to expect from customs authorities when you are clearing your goods. If we omit all `small` not important changes like 100% unloading and lengthy procedures (several days normally) - the main problem is the unstable risk criteria, the appearance and disappearance or records concerning the same type of goods and the terms of reference etc. For instance, last week customs cleared your goods #1 (unit price by invoice is 100 $). This week you try to clear the same goods #1 (unit price by invoice is still the same 100 $), but some risk criteria has appeared and you
2%')/.!,.EWS September 29, 2010, Donetsk
Ukraine-Austrian Business Seminar: Renewable Energy, Energy efficiency, Construction and Infrastructure
The Austrian Embassy’s Commercial Section in Ukraine kindly invites you to participate in a business workshop and showcase on the topic of "Renewable
UPNT UFSNJOBM DBQBDJUZ MJNJUBUJPOT FUD .PSFPWFS B MPU PG PUIFS JOUFSOBUJPOBM WFOEPST IBWF TBNF QSPCMFNT 8IBU FGGFDU EPFT UIJT IBWF PO ZPVS CVTJOFTT 1. Lost sales due to the lateness of delivery (often containers that come after the 20th of the month miss sales in the same month) 2. Decreased service level for our clients, when goods are unavailable for sale due to the c/c delay 3. Operational inefficiency (uneven workload distribution, inability to do proper planning) 4. Trucks or containers demurrage and/or detention charges as a result higher logistics cost (for example European truckers now even refuse to go to Ukraine being afraid to stay at the border or at a terminal) 8IBU DBO CF EPOF UP SFEVDF UIJT QSPCMFN "T B MFBEJOH QSPEVDFS PG DPOTVNFS FMFDUSPOJDT BOE B TPDJBMMZ SFTQPOTJCMF DPNQBOZ XF PQFSBUJOH JO TUSJDU BDDPSE†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† NFEJBSJFT BOE CZ TPVOE JOWPJDFT 5IFSFGPSF UIF DVTUPNT TIPVME FOTVSF GPS EJSFDU JNQPSUFST B NFDIBOJTN PG BDDFQUJOH UIFJS JOWPJDF QSJDFT /PX XF TQFOE EBZT PO QSPWJOH UIBU PVS JOWPJDF QSJDFT BSF MFHJUJNBUF XIJMF DVTUPNT JT EFMBZJOH UIF DMFBSBODF CZ GJOEJOH B DPSSFDU JOEJDBUJWF QSJDF "OPUIFS PQUJPO XPVME CF B QSPQFS JNQMFNFOUBUJPO PG UIF SJTL NBOBHFNFOU JO PSEFS UP EP POMZ TFMFDUJWF DIFDLJOH CBTFE PO B TUBOEBSE BMHPSJUIN BOE TPNF JOUFMMJHFODF "MTP UIFSF TIPVME CF POF TIBSFE EBUBCBTF BOE POF BQQSPBDI BU BMM DVTUPNT DMFBSBODF UFSNJOBMT † JO PSEFS UP FOTVSF UIF TBNF BUUJUVEF TBZ CPUI JO ,JFW BOE JO 0EFTTB 5IFO UIFSF TIPVME CF TPNF TUSJDU OPSNT BT UP UIF DVTUPNT DMFBSBODF EVSBUJPO F H EBZ XIFO BMM QBQFSXPSL JT PL /PX * BN OPU FWFO UBMLJOH BCPVU FMFDUSPOJD EFDMBSBUJPOc -FU T GJSTU TUBSU GSPN UIF TJNQMFTU UIJOHT are informed that the minimum price you can custom clear the goods for is 150$ (not 100$).â€? “What’s more, nobody knows who increased this minimum price for the goods. Why? Which criteria for which goods should be used? ‌and why are they constantly changing?â€? “You’re faced with the choice of either clearing the goods at 150$ (and over-paying the customs duties) or returning them to the sender. As all multinational companies do their budget once per year and cannot change it during the year, these additional costs are outside of the budgeted limits. To reduce these problems, the rules of the game should be transparent and ‘White’ importers should get the green light. This would act as an incentive to all black and grey importersâ€?.
energy, Energy efficiency, Construction and infrastructure". Representatives of Austrian companies will present their firms and products, following which you will have an opportunity to hold individual negotiations and discussions with them. Participation for Ukrainian firms is free. If you would like to participate in the event please complete the application form which is available online at: http://www.advantageaustria.org/ua/
7E LOOK FORWARD TO YOUR FEEDBACK AT
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4 Opinion
www.kyivpost.com
September 24, 2010
Editorials
Tragicomedy Prime Minister Mykola Azarov has been the right hand man for two Ukrainian presidents, Leonid Kuchma and incumbent Viktor Yanukovych. Yet, despite his enormous responsibilities to the nation of 46 million people, he doesn’t give many interviews or feel the need to explain his behavior to the public except in scripted comments. His recent remarks expose the real Azarov, an anti-democratic Soviet holdover unsuited for the job of leading the nation to modernity, democracy and economic revival through free markets. Two cases in point: First: When a young journalist from Korrespondent magazine requested an interview, the prime minister’s spokesman fired back with this SMS, which the journalist released on Sept. 20: “We will require final approval on everything to do with the interview, from the headline to the photograph cutline.” Second: During a Sept. 21 meeting with the youth wing of his ruling Party of Regions in Kyiv, Azarov announced that he was banning TV comedies that make fun of politicians. "This is my initiative. Such [comedies] are not filmed and will not be filmed," Azarov was quoted as saying. We understand that Azarov has a lot to hide and has many reasons to avoid discussions with journalists. As State Tax Administration chief under Kuchma, the tyrannical president who ruled from 1994 to 2005, Azarov was allegedly caught on recordings discussing a wide array of criminal activities – from the rigging of Kuchma’s 1999 presidential re-election, to the rewriting of Naftogaz Ukraine’s tax returns, to how to trump-up a conviction against Sloviansky Bank deputy president Borys Feldman. Azarov has always denied the charges, as have all other officials implicated in wrongdoing on the hundreds of hours of recordings made by ex-Kuchma bodyguard Mykola Melnychenko in 1999 and 2000. Azarov, like Kuchma, has claimed the recordings were fabrications or doctored to make the administration look bad. However, we think otherwise. The Azarov-related recordings cover hours of conversations over several months and many of the discussions on the recordings mirror events as they happened. This explains why Kuchma and Azarov, to this day, avoid journalists they can’t control. It would be funny if it weren’t so sad for the nation.
“Cut! Cut! It’s still too funny! They have to remember they’re talking about the president!”
Litmus tests Ukraine has had so many “litmus tests” in its nearly 20 years as an independent nation that we lose track. Most of them – forming democratic institutions, reducing bribery and corruption, judicial reform, holding honest elections, investigating crimes – have failed. There have been some notable exceptions and progress in some areas. Moreover, even though it will cost the taxpayers and oligarchs billions of dollars, the nation looks poised at this stage to succeed in an upcoming “litmus test” of international prestige: the successful staging of the Euro 2012 soccer championships. A couple of the next “litmus tests” coming up are whether the authorities will stage free and fair local government elections on Oct. 31. Already there are troubling signs that election commissions may be stacked in favor of the ruling Party of Regions and other problems. Others see a “litmus test” in how the nation adopts a new tax code – whether it will be simple, progressive and investor-friendly. Parliament is expected to take a final vote in October. Yet more see a “litmus test” in whether the courts will truly operate independently. The signs are not good. As today’s front page story points out, President Viktor Yanukovych’s administration is so determined to change the Constitution that he is willing to stack the Constitutional Court with compliant judges who will ratify whatever the president wants. While presidential powers are probably in need of strengthening, the Yanukovych approach to governing – steamroll everything the administration wants through parliament and the courts – is another unhealthy sign. These sweeping changes are coming at a time when the nation has no political opposition at home strong enough to provide a check on the administration. They also come as, internationally, most Western powers – including the United States – are far too preoccupied with their own problems to challenge Yanukovych’s anti-democratic power grabs. So we’ll include one more “litmus test:” For all democrats in Ukraine and elsewhere to unite and insist that Ukraine stays on the path of true democracy – and that means containing the authoritarian impulses of the current president. The nation missed a golden opportunity in 2004. While it succeeded in getting Viktor Yushchenko elected democratically as president, it failed to punish those who rigged the fraudulent one that year in favor of Yanukovych. Now he’s in power, with an even greater appetite. He acts confident that punishment will never come as many wonder how many opportunities the nation has left.
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NEWS ITEM: Prime Minister Mykola Azarov on Sept. 21 said that he is banning television comedy that pokes fun at politicians. “Under my initiative, these sorts of clips will no longer be filmed,” Azarov told a meeting of the youth wing of the ruling Party of Regions. Azarov also boasted that he has issued an order for removal of all billboards that show pictures of him. (Drawing by Anatoliy Petrovich Vasilenko)
As a nation, Ukraine is slowly dying as leaders fail citizens KATYA GORCH INSK AYA
I once heard a phrase that Ukrainian politics is addictive because it’s like watching a slow-motion car crash. I thought it to be funny hyperbole, but since then I have moved on to think that it’s neither funny nor hyperbole. For the past few months I cannot shake off the feeling that this country is committing suicide. The car is driving straight into the abyss, and it’s no accident. I will explain. To start, here is a quote from Noam Chomsky, an American intellectual, to define a failed state: it fails “to provide security for the population, to guarantee rights at home or abroad, or to maintain functioning (not merely formal) democratic institutions.” It’s creepily easy to recognize Ukraine in this definition. Nineteen years into its existence, the state is failing to fulfill its basic functions.
Æ Take any definition of a ‘failed state’ and the shoe fits – it’s creepily easy to recognize Ukraine Security is not even on the agenda, except occasionally when something outrageous happens, like the signing of the gas-for-fleet deal this spring between Ukrainian President Viktor Yanukovych and Russian President Dmitry Medvedev, or the Russian war with Georgia in 2008. It is during such sort of crises that Ukrainians start to remember that the army has a function. The rest of the time the sector survives like a fairytale stepdaughter on a budget of 1.2 percent of gross domestic product. Normal countries provide for the basic needs of its citizens. Ukraine does not. Schooling, for example, is supposed to be free of charge in Ukraine. Yet study after study has shown that parents pay bribes and "voluntary contributions," anything upwards of Hr 1,000
to school per academic year per child. Free medical services are only actually “free” from bribes for the dead – simply because they can no longer pay. This is only the beginning. Journalists are killed and assaulted in workplaces. TV channels are being muffled. Historians are being banned from touching documents of the past. If you’re detained by police, you have to pray for your life. Any freedom – you name it – seems to be reversed, and there is noone to stop it since the few democratic institutions that exist are not working, while democratic freedoms overall are being rolled back under President Viktor Yanukovych. The Constitutional Court and the whole system of justice have become the president’s Pokémons, which he feeds or kills, depending on his own moods and needs. Parliament Æ18
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www.kyivpost.com
Opinion 5
September 24, 2010
Yanukovych only seeks sensible Constitution In this Sept. 17 photo, Russian President Dmitry Medvedev, left, and Ukrainian President Viktor Yanukovych drive in a Soviet-era Zaporozhets vintage car at the presidential residence in Zavidovo, about 150 kilometers north of Moscow. (AP)
AN T H O N Y T. S A LV I A
President Viktor Yanukovych’s plan to repeal the constitutional reform of 2004 would give Ukrainian heads of state more power and greater control of the cabinet. This has prompted critics to accuse him of seeking to introduce Putin-style “managed democracy” in Ukraine, copying the long-term power grab in Russia by Prime Minister Vladimir Putin. Such assertions are meant to bring moral discredit on both the president and his proposed reform. It won’t wash. Although it is up to Ukrainians to make their own constitutional arrangements, I should like to express the view that, for a country of Ukraine’s size, complexity, economic potential, geostrategic importance, and need for “reconstruction” after 70 years of MarxistLeninist misrule, a presidential system would seem to be a good fit. There is a lot to be said for a strong executive with the authority to act—as long as there remain constitutional checks on his power. Consider France in 1958, when Charles de Gaulle replaced the parliamentary constitution of the 4th Republic with the presidential constitution that remains in force to this day. He believed only a head of state invested with executive authority could rise above France’s plethora of small, unaccountable parties representing narrow, sectarian interests and embody the “general will.” The crisis of Orange Revolution governance stemmed from the deal Viktor Yushchenko struck with Leonid Kuchma following the disputed second round of the 2004 presidential election: the Orange leader would get another shot at the presidency if he would agree to constitutional reforms that would increase the powers of the legislative branch at the expense of the executive. Thus, when Yushchenko finally assumed the presidency, far from embodying the general will, he found himself with reduced influence over the parliament and cabinet, and at permanent loggerheads with a prime minister for whom he had no use. He presided over a state — no longer presidential, but still not fully parliamentary — as dysfunctional as the French 4th Republic. Yanukovych seeks, in effect, the restoration of the constitution to something resembling the status quo ante Yushchenko. It is not a question of Putinism, but Yanukovychism. If Putinism is in vogue anywhere it is in President Mikheil Saakashvili’s Georgia. Saakashvili recently rammed through the state constitutional commission
amendments transferring from the president to the prime minister the power to make such key appointments as the ministers of defense and the interior. Thus, the premier, who will be elected by the largest parliamentary party, will be the most powerful figure in the land. This is most convenient for Saakashvili — the neoconservatives’ erstwhile poster boy for democracy in post-Soviet space. The new constitution goes into effect in January 2013, just as the president’s second term comes to an end. As the Georgian president is term-limited, Saakashvili is well-positioned to do what critics say Putin did when he faced the imminent loss of power — remain in power anyway. So, if it is supposed Muscovite models of governance one seeks, Tbilisi is the place to look. Managed democracy is not limited to Tbilisi. It is the norm the world over, not least in the United States. The “founders” rejected direct democracy, which they felt would lead to the tyranny of the majority, and wisely devised a series of checks and balances. That represented a proper concession to the temptation to manage democracy. But now our system, less republican than imperial, tends more and more to shield the ruling elite from the will of the people. This occurs through our impregnable two-party monopoly (duopoly?) of power that controls all branches of government, the electoral system and the airwaves, judicial activism that overrules the will of the people when it does not simply obviate it, and a culture of political correctness so
strict as to severely limit the scope of public debate. Europe is hardly better. German voters overwhelmingly wanted to keep the D-Mark. The government paid no heed, showing that a parliamentary system is no less prone to managed democracy than a presidential one. Danish, Dutch and Irish voters all rejected EU treaties in referenda, which, according to the rules, should have meant their demise. But voters were forced to keep on voting until they voted correctly. And once you vote for “Europe,” you never get a chance to vote against it. Constitutional forms, like nuclear weapons, are inanimate, and thus morally neutral. The moral value of any constitutional set up is determined by the uses to which it is put. Yes, constitutional forms must be democratic. But it is just as important that those who lead the nation, any nation, be guided by the classical human virtues of prudence, justice, temperance, and, above all, magnanimity and humility. Good governance stems from these ancient and admirable virtues. No constitutional arrangement and no amount of social engineering can bring about good governance if the hearts of leaders — and the led — are not disposed to grow in virtue. Anthony T. Salvia is executive director of the Kyivbased American Institute in Ukraine. Previously he served as an appointee of President Ronald Reagan to the U.S. Department of State and at Radio Free Europe/ Radio Liberty in Munich and Moscow. The organization’s website is www.aminuk.org.
Yanukovych uncomfortable around democrats abroad WI L L I A M SC H R E I B E R
Last time he visited the United States, Ukrainian President Viktor Yanukovych was the perfect guest. Like a natural Washingtonian, the newly elected president made the rounds on K Street, expressed admiration for the Founding Fathers and even quoted from Dr. Martin Luther King’s “I Have a Dream Speech,” drawing an interesting parallel between Ukrainian-European aspirations and the civil rights movement. Most importantly, Yanukovych brought his host a
gift: more than 80 kilograms of enriched Uranium. Ukraine’s voluntary surrender of its remaining nuclear material was a substantive success for U.S. President Barack Obama’s inaugural nuclear nonproliferation summit in April. Like most successes in Washington, it was also a photo opportunity. Newspaper stands soon filled with shots of the two presidents shaking hands and smiling. For Yanukovych, the publicity was worth its weight in, well, highly refined uranium. For Washingtonians unfamiliar with politics in the former Soviet Union, this image was their first impression of the Ukrainian politician. In contrast, during the same summit, Kazakhstan’s President Nursultant Nazarbayev paid thousands to have his face plastered on bus stops around town. When Yanukovych visits New York this week, his relationship with Obama and the West will have
become a bit more complicated. After further reports of police assaulting journalists, it’s safe to assume fewer photographers will be on hand, when – and if – the two leaders meet. This time Obama has plenty of reasons to avoid a meet and greet with Yanukovych. Ukraine’s recent injunctions against democracy wouldn’t make for pleasant small talk. If he did meet Yanukovych, what’s the proper behavior for a leader of the free world? Americans would do well to heed the mistakes of the old world. German Chancellor Angela Merkel gave Yanukovych a blunt and Teutonic welcome, opening their joint press conference in August by questioning media freedoms in Ukraine. Experts say Yanukovych doesn’t seem to grasp the connection between his actions at home and his social calendar abroad. “He does not understand how large the Æ18
VOX populi WITH TETYANA BOYCHENKO
Do you agree with Prime Minister Mykola Azarov that television programs should not be allowed to make fun of politicians? Borys Borysov Civil servant “Yes, I agree. First of all, the government must be respected, regardless of what they do and how. We elected them. In every European country, people respect their government and don’t try to humiliate it.” Oleksandr Koleganov Student “I think this is abuse of freedom of speech. I’ve read this news online and, frankly speaking, I am shocked. Over the last period of time, Ukraine’s opposition hasn’t had any chances to communicate alarming messages to the public. I guess freedom of speech is under threat.” Oleksandr Parinkud Engineer “I don’t agree. Criticism is always constructive. They [government] should know what people think of them.” Tamara Tavi Artist “I am an artist, and I am a free person. I think that to forbid something is impossible. A person should educate himself or herself. Besides, Azarov should learn Ukrainian properly and only after that may he forbid something.” Mykola Tymoshenko Social worker “They [politicians] are the most hilarious thing TV can show. Azarov himself probably enjoys watching those comedies. I’ve got a friend who is a parliament member. When asked when we will have a better life, he answered, ‘We won’t see it.’ That’s why those comedies should be shown to cheer us up.” Vox Populi is not only in print, but also online at kyivpost.com with different questions. If you have a question that you want answered, e-mail the idea to news@kyivpost. com
6 Business
www.kyivpost.com
September 24, 2010
Boryspil Airport launches new terminal
Thousands visit Chornobyl as tourists
Ukrainian President Viktor Yanukovych (front, center) attended the official opening on Sept. 21 of a new passenger terminal at Kyiv’s Boryspil Airport, Ukraine’s main international and domestic airline hub. Construction of Terminal F cost some $42 million. Plans envision that yet another terminal will be added to boost the airport’s capacity ahead of the Union of European Football Associations’ Euro 2012 soccer championship, which Ukraine and Poland are co-hosting. "We will build several more terminals, which will make Boryspil one of the best modern airports in the world," Yanukovych said. Terminal F is 20,000 square meters and has a capacity to handle 900 passengers per hour. It is expected to handle 40 percent of its flights right away. Terminal D, currently under construction, will be about five times larger -- roughly 100,000 square meters. (Andrei Mossienko)
Tourists from Belgium stand in front of the sarcophagus of the destroyed fourth block of Ukraine’s Chornobyl (Chernobyl) Nuclear Power Plant on Sept. 16. Thousands of tourists visit each year to get a bird’s eye view of the radioactivity-contaminated exclusion zone and Chornobyl plant, where the world’s worst nuclear disaster took place in April 1986. The 30-kilometer exclusion zone around it remains largely uninhabited. But visitors report that wildlife in the untouched and sparsely populated region has flourished despite the contamination. Officials say that a short visit to the site is harmless, and that the number of visitors from Ukraine and abroad is on the rise. Agencies have organized special tour packages for those to dare to get close to Chornobyl. The price usually starts at around $100 for a day’s visit, including fees to obtain special permission and transportation from Kyiv. A popular stop is the “ghost� city of Pripyat, which has been abandoned since Soviet days in connection with the accident. (AFP)
ÆOn the move OLENA SHYNKARENKO has joined Ulysses, a Ukrainian law firm, as an associate. In her new position, Shynkarenko will focus on transactional and international tax matters, and will also be involved in the real estate practice. Before joining Ulysses, she worked as a tax associate at Magisters, Ukraine’s largest law firm. Olena was a member of the award-winning team at the 2010 national round of Philip C. Jessup international law competition and represented the winning team in the international round in Washington. Shynkarenko holds a graduate degree in law from National University Kyiv-Mohyla Academy.
Send On the Move news to gnativ@kyivpost.com, or contact Olga Gnativ at 234-6500. Send business photos and press releases to: news@kyivpost.com, or contact the newsroom at 234-6310.
YURIY NIKOLAYCHUK
DMYTRO GADOMSKY
has joined Kyiv-based Ulysses law firm as an associate. In his new position, Nikolaychuk will continue his focus on transactional and international tax matters. He will also be involved in corporate law matters, as well as in the firm’s mergers and acquisitions practice. Before joining Ulysses, Nikolaychuk worked as a tax associate at Magisters. Nikolaychuk worked on a number of highprofile projects, including the construction of the Hilton Hotel in Kyiv. He advised Unimilk, the second largest milk producer in the Commonwealth of Independent States, on the Ukrainian legal and tax aspects of worldwide restructuring of the group. He holds a graduate degree in law from Kyiv National Taras Shevchenko University and a master’s degree from Regensburg University, Germany.
was appointed senior associate of the dispute resolution department at Arzinger, a Ukrainian law firm with offices in Kyiv and Lviv. Before that, Gadomsky worked for Salkom, a domestic law firm as head of the intellectual property department. He also worked as senior consultant in the tax and legal department of Deloitte in Kyiv. Gadomsky has wide experience in different types of litigation and arbitration, as well as in legal advisory. He represented clients in Ukrainian and foreign courts in tax, real estate, intellectual property and many other disputes. He consulted foreign and Ukrainian clients in intellectual property law, international tax structuring, and assisted clients in large mergers and acquisitions deals. Gadomsky graduated from Kyiv National University of Law with a master’s in commercial law.
DMYTRO SHEVCHENKO became a senior associate at Arzinger. Shevchenko specializes in real estate and land law, mergers and acquisitions and contract law. Before joining Arzinger’s team, he headed the real estate department at Salkom law firm. He advised his clients on land and real estate, construction, development of investments and construction financing in Ukraine. Shevchenko graduated from Taras Shevchenko National University of Kyiv with a master’s degree in law.
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Business 7
September 24, 2010
Kolesnikov: ‘I don’t see any mafioso in Regions party’ BY J O H N M A R ON E MARONE@KYIVPOST.COM
Deputy Prime Minister Borys Kolesnikov is more than a top member of President Viktor Yanukovych’s Party of Regions coalition. The 47-year-old businessman, born and raised in the Regions’ homeland of Donetsk, is also the voice of the party’s moneybag, Rinat Akhmetov, Ukraine’s richest billionaire. Kolesnikov and Akhmetov are said to be childhood buddies. Maybe that’s why the Ukrainian confectionary tycoon received a top-10 position on the party list during the 2007 parliamentary elections. It also may be why Kolesnikov was jailed when Regions’ political opponents – ex-President Viktor Yushchenko and ex-Prime Minister Yulia Tymoshenko -- came to power in 2005 on a platform of social justice. In an interview with the Kyiv Post, however, Kolesnikov dismisses the idea that Ukraine’s party of power consists of individual factions, each with its own business and even political agenda. Kolesnikov, instead, preferred to spread the word about the government’s plans to change the tax code and the country’s glowing prospects for co-hosting a successful Euro 2012 football championship.
Football: Don’t worry Despite well-founded concerns that Ukraine is behind schedule in the building of football stadiums in Lviv and Kyiv, two of the Ukrainian cities chosen by the Union of European Football Associations to host matches during the 2010 European tournament, Kolesnikov said everything will be completed on time. “This year, the stadium in Johannesburg [South Africa] opened 50 days before the World Cup. That’s not a good example. By next summer, we will have put up all structures. Final checks will be carried out in December 2011,” Kolesnikov said. How about hotels, which Ukraine also sorely lacks for rank-and-file foot-
Æ Friend of Ukraine’s richest man in charge of government tax reform project ball fans? “As regards the so-called UEFA family, the work has been 100 percent completed. Regarding tourists, we are talking about three-star hotels and less.” To stimulate more rooms for the three-star-and-less crowd, the government will offer a 10-year tax break to real-estate developers, Kolesnikov said.
Tax code: Something for everyone That brings us nicely to our next topic: In a country and party where heavy industry takes first place, what can the owners of small- and mid-sized businesses expect from the government’s proposed tax code? “Small businesses are fully protected. One can have a truly small business with revenues of up to Hr 300,000 per year, but pay a single flat tax,” the deputy minister said. And real estate – does the government plan to tax all those property owners who let their property sit idle and become eyesores? “There will be no real-estate tax on households under 100 square meters, no matter how many people live there,” he said. But beyond that, the tax can go as low as 1 euro per year. How about value-added taxes? Foreign exporters are screaming over the government’s withholding of billions of dollars in refunds. “A computer program is being created that will allow VAT to be returned
Ukrainian Deputy Prime Minister Borys Kolesnikov.
automatically according to certain criteria,” said the long-time businessman. Oh, and one last thing … how long will employers be allowed to avoid taxes by paying salaries primarily in envelopes? “Anyone who gets his salary in an envelope loses almost Hr 250 of Hr 500 in their future pension,” Kolesnikov warned.
Politics: United we rule There is no shortage of material in the Ukrainian media about the division of the Party of Regions into various, sometimes warring factions, with tension between Akhmetov and international gas trader Dmitry Firtash draw-
ing the most attention. So what does Kolesnikov think about all this? “I don’t see any mafiosio groups. I don’t see any tension. While in opposition, there are various opinions and approaches. When a team is in power, it must be a single mechanism concentrated on a common result. Otherwise, it will again end up back in opposition,” he said. But wait a second … some speculate that Dmitry Firtash, the billionaire co-owner of the controversial RosUkrEnergo gas-trading company, and his numerous supporters in the government are yielding greater influence in Ukraine to the Kremlin in
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info@sbrsecurity.com www.sbrsecurity.com
return for lucrative and even personally rewarding gas deals? “I want to talk about facts, not suppositions. I don’t care whether relations are close between them or not. I am concerned about whether Ukraine feels secure, and it will feel secure under the president’s project on diversification of gas supplies [to Europe],” he said. But what about Ukrainian security from Russian energy hegemony? “What is being said today is being consciously pushed by the opposition. There are no facts and there cannot be any facts … Without the national economy that Yanukovych is working on, there won’t be any freedom,” Kolesnikov said. Moreover, according to the deputy prime minister, what’s so bad about Russian influence? After all, it’s a country with a democratically elected president, just like everywhere else “Borrowing money from the West is good, yeah? That doesn’t put Ukraine under the influence of the West, no? But doing profitable projects with Russia, that’s Russian influence, yeah? So Russia isn’t democratic? The authorities in Russia were legitimately elected. Why is Russia worse than the West?” OK, let’s cut to the quick: Do you agree with the current government’s decision to return the 11 billion cubic meters of gas – worth some $5 billion -- seized by the former government of Yulia Tymoshenko from RosUkrEnergo? “I don’t know the details, first of all. Secondly, if the government got the gas illegally, this is a violation of private property rights. If this is further allowed, then we go back to 1917 (Bolshevik Revolution).” Speaking of repression, what about the recent wave of arrests of officials who served under the former government? “If their guilt is established by a court, they are guilty. If a court vindicates them, then the ones who jailed them are guilty,” Kolesnikov said. Kyiv Post staff writer John Marone can be reached at marone@kyivpost.com
8 Business Focus
Auditors still feel crisis, but detect pent-up demand BY O K S A N A FA RY N A FARYNA@KYIVPOST.COM
While Ukraine’s macro economy shows some signs of recovery, auditing firms are still experiencing hard times. One reason is that most Ukrainian businesses that had announced initial public offerings (IPOs) or debt offerings this year, with a few exceptions, postponed their plans till 2011. That resulted in deferred demand for audit services. “Just in our company’s portfolio there were eight companies that were preparing for initial public offerings, and several more companies planning public debts this year. Most of them postponed their plans,” said Alexei Kredisov, managing partner in Ukraine for Ernst & Young, one of the Big Four auditing and consulting companies, which consult and conduct audits for businesses before they enter foreign stock exchanges, issue Eurobonds or attract lower-interest loans from international banks. Experts named up to 15 Ukrainian companies that had announced their attempts to do IPOs this year, and a dozen companies which planned to conduct debts offerings. In the first half of 2010 several companies succeeded. Sunflower oil producer Kernel conducted secondary public offerings while two other agricultural companies, Avangard and AgroGeneration, held an IPO. The biggest deal was by DTEK, the larg-
Max Panfilov. (Courtesy photos)
est privately-owned Ukrainian energy conglomerate, owned by Ukraine’s richest man Rinat Akhmetov. It raised $500 million by issuing five-year Eurobonds. Over the summer, 90 percent of Ukraine’s companies which planned to tap into international debt and capital markets this autumn postponed these plans due to external economic factors, Ernst & Young’s Kredisov said. “The majority of these plans were called off this summer when the Greek
www.kyivpost.com
September 24, 2010
economic troubles came ashore, and then the whole Euro zone was shaking, and the real threat of a second wave of the crisis was imminent,” Kredisov said. Regarding IPOs, analysts forecast one or two more deals before the end of this year and said a flurry of Eurobond issues was possible after Ukraine’s government successfully raised $2 billion through two separate Eurobond deals this month, about the time that leading bank Privatbank issued a $200 million Eurobond. Being several times oversubscribed, Ukraine’s sovereign issue demonstrated that there was a strong appetite to lend again to Ukraine. The country’s government and companies found themselves cut off from affordable financing after the 2008 global credit crunch escalated into the 2009 international recession Auditors said that there is now a window open for several more issues on the wave of the government’s success. And they expect their auditing, accounting and broad consulting businesses to pick up much more in the long term, as IPO and lending activity recover to pre-crisis levels. “Ukrainian business needs significant investment in order to finance their expansion plans, modernize their technology, refinance their existing debt,” Kredisov said. “Companies still plan to do these public offerings, but they moved them to 2011. This is deferred Æ9
Audit, accounting firms may pass on savings to clients if tax breaks given BY SV I TLA N A TU C H Y N SK A TUCHYNSKA@KYIVPOST.COM
After a tough year that saw business slide sharply with the global 2009 recession, Ukraine’s audit and accounting firms are pleasantly surprised about the prospect of unexpected tax breaks. But they can't yet say if this will lead to lower bills for clients. The changes are in the proposed new tax code, submitted to parliament on Sept. 21. It proposes to exempt auditing, accounting, legal and business consulting services from value added tax. Dreaded by many businesses, this tax is currently set at 20 percent and is charged upon the domestic sale of most services and goods. That means that clients pay this tax when paying the bill. “The authors of the tax code included a surprise gift by freeing us from valueadded tax services such as auditing, accounting, legal counsel and business consulting,” said Volodymyr Kotenko, head of the tax and legal department in Ukraine for Ernst & Young, one of the world’s so-called Big Four accounting and auditing giants. “As a result of this gift, providers of such services will no longer (if the tax code is adopted with this clause in place) charge VAT upon billing for their services,” Kotenko added. Logic has it, that if the tax code is adopted by parliament by the end of October and includes this clause, then clients of such services could see fees drop by about 20 percent. But Kotenko and representatives of other firms could not immediately say if such tax changes would reduce the size of the bill charged to customers in the end. This has fuelled speculation that firms offering the respective services could, instead attempt to boost their profit margins.
Volodymyr Kotenko
Much is still unclear, however, as lawmakers could yet amend the government’s proposed tax code before adopting it into law. In particular, President Viktor Yanukovych’s administration has joined opposition parties in criticizing the tax code for failing to offer enough stimulus for small- and medium-sized businesses. If adopted in its current form, the tax code envisions that profit taxes will be cut sharply in coming years for big businesses and tax holidays will be offered to certain sectors such as hotel development projects and aviation industries. But critics allege the tax code will, as it stands, actually increase the tax burden on many average citizens and small-to-medium sized businesses.
Big decisions follow you around
Grant Thornton Ukraine provides audit and assurance, transaction services (due diligence), corporate finance services (valuation, business planning, M&A), accounting services and HR, consulting services, tax and legal support. Members of Grant Thornton International perform Capital Markets services on Alternext, London AIM, Warsaw stock exchange and other financial markets. Grant Thornton Ukraine is a member firm of Grant Thornton International, one of the world's leading organizations of independently owned and managed accounting and consulting firms.
Audit Tax Advisory www.gtukraine.com, www.gti.org E: info@gtukraine.com 4a Degtyarivska Str, Kiev 04050, Ukraine T +38 (050) 351-3003 | T +380 (44) 230-4778(80) | F +380 (44) 230-4840
www.kyivpost.com
September 24, 2010
Business Focus 9
Kazakov’s Grant Thornton: Many firms got through 2009 ‘Competition has certainly crisis by providing become more intense’ cost-cutting advice BY OL GA GNATIV GNATIV@KYIVPOST.COM
Æ8 demand for audit services.â€? Some firms have looked for ways out of the crisis by finding niches. Grata Consulting Group, a local audit company which represents Ukraine in Kreston, a worldwide network of independent accounting firms, sees increasing demand to secure financing among smaller firms. Earlier this week, the group launched a joint program with the Warsaw Stock Exchange. Grata will consult and conduct an audit for its clients willing to enter NewConnect, a trading platform for smaller companies within the Warsaw Stock Exchange. “We plan to attract our first clients in October-November,â€? said Max Panfilov, Grata’s corporate business director. “There definitely will be demand for this service because entering an alternative platform is two or three times cheaper than the main Warsaw Stock Exchange and it is much faster.â€? To issue or list stocks on NewConnect, it takes a company from four to six months in contrast to six months or a year on exchanges for bigger companies such as the main markets in Warsaw, London or Frankfurt. NewConnect is a market mostly for small- and mid-sized businesses seeking capital up to $10 million dollars, and wishing to enter the regular market of the Warsaw Stock Exchange in the future. Audit companies’ incomes this year have mainly been driven by consulting services. “If we analyze the new clients who came this year, most of them applied for tax accounting and tax advice on following tax legislation,â€? said Iryna Igumnova, general director at Kyiv Audit Group. “Companies became more sensitive for potential fines by tax authorities and count every cent.â€? Ernst & Young’s Kredisov said many Ukrainian businesses that opted to cut expenses during the
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Æ ‘First the whole economy will recover and only after that our profession.’ -Alexei Kredisov of Ernst & Young 2009 recession unfroze their budgets for consulting services in 2010. The biggest demand was for services related to cost optimization and cost reduction, analysis of product profitability, improvement of operations and risk management. The audit profession in Ukraine finished this calendar year with difficulties, Kredisov added. Ernst & Young’s income in Ukraine for the last financial year (from July 2009 till June 2010) showed a 15 percent decline in dollar equivalent. “Our auditing profession has a lag,â€? Kredisov said. “This is a certain period of time, usually one-two quarters, which precedes our business coming out of the crisis. First the whole economy will recover and only after that our profession.â€?
Grant Thorton Ukraine and Baker Tilly Ukraine are two of the main competitors of the Big Four (Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers) on the Ukrainian and international accounting and auditing services market. According to a report published in June 2010 by the Association of Chartered Certified Accountants, Grant Thornton International is eighth on the global list of accounting firms with $3.5 million combined total income in 2009. Baker Tilly placed 10th with $3.1 million. The Kyiv Post spoke with partners at the two firms to get their take on the market, the crisis and how they compete with accounting’s biggest fish.
Vitaliy Kazakov, managing partner at Grant Thornton Ukraine. KP: How has the market situation changed since the beginning of 2010? Do you feel that the crisis is over? VK: The situation in the consulting business, including audit, valuation and financial consulting, is dependent on the general economic situation in Ukraine. Since the beginning of the crisis we felt the impact of the economic downturn very significantly. This relates to many factors, starting from revenue growth rate, which is based on clients’ portfolio growth and the level of fees. The last was significantly depressed at the clients’ request or due to a reduction in prices by some consulting companies, which in turn led to selection by price rather than quality. At the start of 2010, we didn’t feel the crisis was over. Most companies were
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still struggling, especially medium- and small-sized businesses. Unfortunately, the most obvious but wrong decision they took in order to save funds was to cut international audit expenses. This reflects local Ukrainian culture and attitude to audits. Most foreign companies or companies with foreign capital did not cut audit expenses as this represents a corporate culture and continuity of the business. In the second half of the year, we have seen an increase in consultancy requests. We hope that this reflects some revival of business and not just a migration of clients from one auditing firm to another searching for cheaper services.
KP: How did the economic downturn affect your business? New kinds of services? Lower prices? A bigger battle for the clients? VK: There were a few trends on the market: shrinkage of the clients’ service portfolio; decrease in services’ prices and dumping on the market; low clients’ tolerance to negative audit opinions and increase in potential migration from one audit company to another searching for clean opinions for cheaper prices; increase in price competition regardless of any quality control on the market and low clients’ differentiation of audit companies’ brands, weak understanding of meaning “good audit work� . We tried to bring new services to the market, such as operational restructuring, which helps to tune up a business and make it healthier. Unfortunately, companies are often not ready to consider external help to help them improve. The business culture in Ukraine is quite closed. KP: What are the main lessons of the crisis? VK: I believe that the main lesson is that the audit profession in Ukraine is very weak. There are only a few companies on the market that can consistently conduct high-quality audits
and remain independent when fee pressure is high, as is pressure from clients to issue a “clean opinion.� The market is damaged by the fact that it is very badly controlled by regulators and clients.
KP: As a global accounting and audit firm, how do you compete for market share with bigger international players, namely the Big Four? Do you feel that competition has increased during the crisis? VK: Competition has certainly become more intense. We observe this on state tenders for audits. It is obvious that some tenders are agreed in advance and tender conditions are set in a way to limit the potential audit companies only to the Big Four. I have to say that as a global firm we have sufficient resources to compete with the Big Four companies on the Ukrainian market, as Grant Thornton does in other countries. As an international network, Grant Thornton is a highly structured and advanced organization. I believe that Grant Thornton should develop and improve its quality control processes and procedures, which are its strong competitive advantages. We see many local companies or companies allied with different international networks that don’t pay enough attention to their quality control procedures and don’t always meet high quality standards, placing a big question mark over independence. In such a situation, it is our aim to bring understanding and recognition to our company by keeping our services high in quality and independence. KP: What are your main advantages on the market? VK: We intensively use computer based audit programs for client acceptance, risk assessment and audit workflow documenting, among other things. This brings real transparency to quality control from the side of clients, who want to know what they are paying for, as well as for external use and Æ10
10 Business Focus
www.kyivpost.com
September 24, 2010
Baker Tilly’s Pochkun: ‘We cannot say that the crisis has passed completely’ Æ9 our firm’s own control bodies. Grant Thornton is a well known and recognized leader among financial consultants on the large financial markets like the London Stock Exchange. It is also a leading consulting firm in restructuring consulting, public sector consulting, project finance consulting and valuation. Our reputation on the local market is well backed by significant experience of cooperation with international financial institutions. KP: What major trends do you expect to see in the near future in accounting services? VK: We expect a decrease in the number of small audit companies and private auditors especially considering changes in the tax system that will come with the adoption of the new tax code. I would predict further price competition instead of quality competition. Still, the existence of external influence on the market from international financial institutions and investors, who have a certain perception and understanding of what a quality audit means, will keep our clients’ market at least stable. Advertisement
We also expect some clients to migrate from the Big Four companies, as this has to be a natural process after their long dominance.
Oleksandr Pochkun, managing partner at Baker Tilly Ukraine. KP: How has the market situation changed since the beginning of 2010? Do you feel that the crisis is over? OP: The market situation has improved. Capital markets have begun to revive and companies have started searching for financing. We cannot say that the crisis has passed completely, as there’s still instability in the Ukrainian market. KP: How did the economic downturn affect your business? New kinds of services? Lower
prices? A bigger battle for the clients? OP: Naturally, the global crisis influenced our business as well, because we work on projects related to attract funding. Due to the fact that there was less money flowing into Ukraine, there were no investments into business and this reflected on our business. I can’t say that this led to the creation of new kinds of services, because we focused more on cementing our relationship with existing clients. By monitoring their communications with our main competitors, price proposals and so on, we made our clients feel comfortable working with us. However, I have to admit that during this period prices actually fell heavily. KP: What are the main lessons of the crisis? OP: Surviving the crisis cannot be achieved by saving money, but earning it. We should not forget that crisis also means new opportunities; we just have to find ways to seize them. KP: As a global accounting and audit firm, how do you compete
for the market share with bigger international players, namely the Big Four? Do you feel that competition has increased during crisis? OP: Our belief is that the Ukrainian market of medium and large companies is our market. We are well acquainted with it; we know the specifics and complexities faced by companies, in particular, during the transition to international standards. Perhaps this understanding and the business environment is our main competitive advantage. Nowadays business competition has become more acute. Unfortunately, there are cases, when unfair practices are used in competition, for example providing incorrect information about our firm. KP: What are your main advantages on the market? OP: One of the main advantages in our work, especially compared with our colleagues from the Big Four, is that we have fewer levels of decision making in management, which allows us to respond more quickly
to customer requests, in particular to the complex issues that require detailed study. Another advantage is that we have three offices [in Kyiv, Odesa and Donetsk] which allows us to be closer to our major clients and helps customers to save money on staff travel. KP: What major trends do you expect to see in the near future in accounting services? OP: Auditors are still very important and in demand. Users of financial information feel more confident when they have audited financial statements. However, client demands to auditors may increase. Auditors will most likely have to change their approaches, shifting the focus from dealing with retrospective data to working with forwardlooking information, in order to be able to analyze more precisely trends or changes and provide information of the highest standards. This is important because, as a rule, the auditor works with information on events that have taken place, as well as with events that took place after the balance sheet date.
INTERNATIONAL ACCOUNTING AND AUDIT FIRMS Listing is arranged in alphabetical order
TEL./FAX
TOP EXECUTIVE
OWNERSHIP, UKRAINIAN / FOREIGN (%)
HEADQUARTERS
# OF FULL-TIME EMPLOYEES IN UKRAINE
# OF FULL-TIME PROFESSIONAL AUDITORS IN KYIV
# OF ACCOUNTING STAFF
PRICE RATE $, COMPANY SPECIALIZATION (PER HOUR)
MAJOR CLIENTS
FOREIGN LANGUAGES
REVENUES IN 2009 ($)
GSE Group, Altron, PSG, Barum Continental, Laufen, SAS institute, Rijk Zwaan, IFM
English, Russian, Czech, Slovak
WND
TNK-BP, Lukoil, Energetic Company Of Ukraine, XXI Century, Azot
English
321.6 thousand
UKRTATNAFTA, Naturprodukt Vega, Hellenic Bank, HARDEX, BEJO, Integris Int., Alpha Medical, Faberlic, Lottery Dynamics, Grain Alliance, Colin’s
English, Russian
WND
Accace, (in Ukraine since 2005), www.accace.eu, info@accace.eu, 172 Gorkogo Str., off.#84, Kyiv 03680, Ukraine (044) 569-3310 (044) 569-3167
Jana Vasilenkova
0/100
Bratislava, Slovakia
12
0
5
From 30 Euro
Tax advisory, payroll administration, accountancy outsourcing and consulting corporate and trust services
Audit&Consulting Group “EXPERT”, (in Ukraine since 2003), www.expert-company.com, audit@expert-company.com, (An independent member of Morison International), www.morisoninternational.com, 8B Kudryavska Str., off.#2, Kyiv 04053, Ukraine (044) 272-5321 (044) 272-3821 (044) 272-3841
Dmytro Oleksiyenko
100/0
London, UK Kyiv, Ukraine
31
8
WND
WND
Audit, M&A, taxation, accounting, consulting, legal, corporate finance, valuation
Audit Company HLB UKRAINE LLC, (in Ukraine since 1994), www.hlb.com.ua, office@hlb.com.ua, 8 Panasa Myrnogo Str., off.#6, Kyiv, 01011, Ukraine (044) 222-6010 (050) 311-3179
Valeriy Bondar
100/0
London, UK
93
WND
WND
WND
Audit, IFRS transformation, accounting, outsourcing, tax and legal advisory, Due Diligence, forensic services, financial analysis, appraisal.
Audit Group "Guarantee-Audit" (a member of Guarantee-Group), (in Ukraine since 2003), www.auditgroup.com.ua, anna.morgalenko@bestaudit.com.ua, 8/14 Big Zhitomirskaya Str., off.#7, Kiev 01025, Ukraine (044)230-8389 (044)230-8390
Aleksey Mechinskiy
100/0
Kyiv, Ukraine
80
30
10
WND
Audit, taxation, accounting, outsourcing, business advisory, Due Diligence , law and legal support
Winner Imports, Metro, Praktiker, Uniliver, Scania, BCG, Pharmak
English
WND
English, Russian
Hr 12 million (in Ukraine)
Audit Company MGI Consulting Ltd, (in Ukraine since 1992), www.consulting.ua, consulting@consulting.ua, Gusovskogo Str., 11/11, off.#1, Kyiv, 01011, Ukraine (044) 569-1562 (044) 569-1563
Olga Zinko
100/0
Kyiv, Ukraine
90
25
WND
From 50
Audit, tax and legal services, accounting outsourcing, transformation (IFRS, GAAP), Due Diligence, appraisal services, corporate finance.
Member of international network of independent audit and consulting firms UHY International (London, UK)
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Trying to improve your back office effectiveness… We do your accounts, payroll and financial reporting work properly, reducing risk of penalties and tax liabilities, as well as overhead
e-mail: audit@prostir.net.ua t www.prostir.net.ua t www.uhy.com
Financial services -
Legal services -
corporate services, accounting outsourcing, support of foreign tax advisory, financial investors, juridical engineering, support, investments, strategy due-diligence, etc. development, etc.
www.ebskiev.com +38 044 249 7905
·
HR Services recruitment, HR audit, HR consulting, out-staffing, training, interim management.
Str. Sahaydachnoho 25-B 04070, Kyiv, Ukraine T/F: +380 44 4985126 E-mail: info@monvair.com www.monvair.com
·
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www.kyivpost.com
September 24, 2010
Business Focus 11
INTERNATIONAL ACCOUNTING AND AUDIT FIRMS
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Listing is arranged in alphabetical order TEL./FAX
TOP EXECUTIVE
OWNERSHIP, UKRAINIAN / FOREIGN (%)
HEADQUARTERS
# OF FULL-TIME EMPLOYEES IN UKRAINE
# OF FULL-TIME PROFESSIONAL AUDITORS IN KYIV
# OF ACCOUNTING STAFF
PRICE RATE $, COMPANY SPECIALIZATION (PER HOUR)
MAJOR CLIENTS
FOREIGN LANGUAGES
REVENUES IN 2009 ($)
WND
English
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English, German, French
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Audit Company “UHY Prostir ltd�, (in Ukraine since 2003) www.prostir.net.ua, audit@prostir.net.ua, 24/21 Saksaganskogo Str., Kyiv 01033, Ukraine (044) 492-8716 (044) 492-8718
Alexander Koinov
100/0
Kyiv, Ukraine
27
12
12
WND
Audit, Legal & Tax advisory , Accounting Outsourcing, Legal services, Outstaffing,
Audit firm “Aksonova & Associates�, (in Ukraine since 2003), www.ap-center.com, Deputat@ap-center.com, 29E Vorovskogo Str., off.#10, Kyiv 01054, Ukraine (044) 482-2788 (044) 482-2858
Olena Makeieva
100/0
Kyiv, Ukraine
30
14
12
WND
Audit, accounting, outsourcing, consulting, legal advice, tax consulting, payroll, due diligence review, business advisory services
WND
Audit Firm Kyiv Audit Group, An Associate Firm of Praxity, AISBL, (in Ukraine since 1996), www.kagaudit.com, info@kagaudit.com, 7 Holosiivs’ka Str., building 3, Kyiv 03039, Ukraine (044) 585-9698
Iryna Igumnova
WND
Kyiv, Ukraine Praxity – London, UK
50
20
8
20-200 Euro
Audit, tax and law advice, accounting outsourcing, restructuring, transactions, M&A, due diligence
WND
English
Praxity (globally, 2009) - 3.3 bln
WND
English, French, German
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English, German
5.026 billion (globally)
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English, German, French, Spanish, Italian
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English
21.4 bln (globally)
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English
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Ukrinterenergo, CleanStar Borschagovskypharmaceutical plant, UIG (Ukrainian Insurance Group), NICO Group, Winner Automotive etc.
English, German, French
Grant Thornton International global revenue in FY 2009 – US$3.6 billion
English
1.642 bln (globally, 2009)
Baker Tilly Ukraine, (in Ukraine since 1999), www.bakertillyukraine.com, info@bakertillyukraine.com, 28 Fizkultury Str., Kyiv 03680, Ukraine (044) 284-1865 (044) 284-1866
Alexander Pochkun
100/0
London, UK
199
107
18
WND
Audit, Corporate Finance, Independent valuation, Business Advisory, Outsourcing, Tax Advisory
BDO LLC, (in Ukraine since 1993), www.bdo.com.ua, bdo@bdo.kiev.ua, 201-203 Kharkivske Road, 10-th floor, Kyiv 02121, Ukraine Kyiv: (044) 393-2688 (044) 393-2691 Dnepropetrovsk: (056) 370-3043
Managing Partner / Director BDO Sergiy A. Balchenko
100/0
Brussels, Belgium
250
140
WND
WND
Audit, tax and legal advisory, corporate finance, appraisal activities, business advisory services
EBS (Emergex Business Solutions), (in Ukraine since 1998), www.ebskiev.com, info@ebskiev.com, 13A Universytetska Str., Kyiv 03110, Ukraine (044) 249-7905 (044) 249-7906
Helen Volska, Managing Partner and Director
0/100
Kyiv, Ukraine
85
WND
45
WND
Accounting and payroll outsourcing, preparation of tax, financial and managerial reports, preparation of IFRS and GAAP reports, consultancy on the finance and tax issues
Ernst & Young, (in Ukraine since 1991), www.ey.com/ua, kyiv@ua.ey.com, 19A Khreschatyk Str., Kyiv 01001, Ukraine Kyiv: (044) 490-3000 (044) 490-3030 Donetsk: (062) 340-4770
Alexei Kredisov, Country Managing Partner
WND
London, UK
519
210
WND
WND
Audit, tax and law, business advisory, accounting outsourcing, business and IT risks, restructuring, transactions, M&A, valuation, academy of business, human capital
Global Consulting Corporation, (in Ukraine since 1998), www.gc.ua, kiev@gc.ua, 2 Solomenskaya Sguare, off.#505, Kyiv 03035, Ukrane Kyiv: (044) 599-7141 (044) 495-5424 Kharkov: (057) 758-5606
Muravyov Vladimir
WND
Kharkov, Ukraine
80
3 (Kyiv)
3 (Kyiv)
WND
Audit, legal due diligence, accounting outsourcing, legal services, licenses, registration, reorganization, liquidation, investment consulting, staff recruitment
Grant Thornton Ukraine, (in Ukraine since 1991), www.gtukraine.com, info@gtukraine.com, 4A Degtyarivska Str., Kyiv 04050, Ukraine (044) 230-4778 (044) 230-4780 (044) 230-4840
Kazakov Vitaliy
100/0
London, UK
70
40
8
WND
IFRS audit and assurance services, reorganization and restructuring, tax consulting, due diligence, M&A, accounting services and HR
Grata Consulting Group (Kreston International), (in Ukraine since 2001), www.grata.com.ua, office@grata.com.ua, 10 Grushevskogo Str., Kyiv 01001, Ukraine Kyiv: (044) 498-2912 (044) 498-2913 Donetsk: (062) 334-9937 (062) 334-9938
Sergey Atamas, Managing Partner
WND
Chelmsford, UK
35
WND
WND
WND
Audit services, IFRS accounting, tax services, due diligence, business valuation, advisory
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12 Business Focus Advertisement
www.kyivpost.com
September 24, 2010
INTERNATIONAL ACCOUNTING AND AUDIT FIRMS Listing is arranged in alphabetical order
TEL./FAX
TOP EXECUTIVE
OWNERSHIP, UKRAINIAN / FOREIGN (%)
HEADQUARTERS
# OF FULL-TIME EMPLOYEES IN UKRAINE
# OF FULL-TIME PROFESSIONAL AUDITORS IN KYIV
# OF ACCOUNTING STAFF
PRICE RATE $, COMPANY SPECIALIZATION (PER HOUR)
MAJOR CLIENTS
FOREIGN LANGUAGES
REVENUES IN 2009 ($)
Intercomp Global Services Kyiv, (in Ukraine since 2007), www.intercomp.com.ua, ukraine@intercompglobal.com, 119 Saksaganskogo Str., Business Center “Botanic Towers”, Kyiv 01032, Ukraine (044) 207-4343
Natalia Pasko
0/100
Houston, USA
42
no
30
From 28
Complex BPO solutions, payroll, financial accounting outsourcing, restoration of accounting, tax planning and consulting, human resources administration, HR audit, recruiting, outstaffing
WND
English
WND
WND
English, German, French
WND
WND
Finish, German, English, Swedish
WND
WND
English, French, German
WND
WND
English, Swedish
WND
Provided on the web-site
English
WND
Provided on the web-site
English
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VS Energy Int., Concern Galnaftogaz, Mriya Agro Holding, PAKKO Holding
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Olena Makeieva
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24
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14
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Accounting Outsourcing,Payroll, Financial Accounting, Due Diligence Review; Budgeting and tax planning; Legal Advice, Business Process Outsourcing (BPO)
KONSU KYIV LLC, (in Ukraine since 2008), www.konsu.com, kiev@konsu.com, 9/2 Chervonoarmiyska Str., off. #31, Kyiv 01004, Ukraine (044) 499-1355 (044) 499-1354
CEO of Konsu Group Manfred Janoschka, Deputy Director Oksana Kochmarska
100/0
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11
-
8
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Business start-up services, financial management outsourcing/ accounting services, HR & payroll solutions, tax advisory, legal advisory, business advisory
Mazars Ukraine LLC, (in Ukraine since 1993), www.mazars.ua, info@mazars.ua, 8 Illynska Str., entry 1, 6th floor, Business center Illynsky, Kyiv 04070, Ukraine (044) 390-7107 (044) 390-7106
Dattee Gregoire Louis Mari Ogust, Managing Partner
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Paris, France
18
10
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Audit, accounting, outsourcing, tax
Monvair, (in Ukraine since 2008), www.monvair.com, info@monvair.com, 25B Sahaydachnoho Str., Kyiv 01061, Ukraine Kyiv: (044) 498-5126 London: 44 (0) 207 903- 5187
Roman Chukhvitsky, Managing Partner, Anthony Wood, Partner
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Kyiv, Ukraine
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From 50
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OL.Consulting, (in Ukraine since 1997), www.olconsulting.com.ua, office@olconsulting.com.ua, 39-41 Khoryva, Kyiv, 04071, Ukraine (044) 545-6777 (044) 545-6525
Aleksey Gachkovskiy
100/0
Kyiv, Ukraine
47
13
7
35-400
Business Start-up, Audit, Accounting, Taxation, Legal services, M&A, Project management
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Artur Surmenko
100/0
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26
13
7
35-100
Audit, accounting & tax consulting, M&A, due diligence, business planning and financial analysis, budget system arrangement and developing, outsourcing
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Mykola Romanyuk
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Lviv, Ukraine
100
32 (in Ukraine)
8
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100/0
Kyiv, Ukraine
21
12
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Klaus Kessler
0/100
Nuremberg, Germany
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WND
WND
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Pavlo Boyko, General Director
WND
Amsterdam, Netherlands
30
0
25
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Bookkeeping and reporting services, human resource and payroll services, corporate secretarial services
UCMS Group Ukraine LLC, (since 1995, in Ukraine – 2006), www.ucmsgroup.eu, ucms.ukraine@ucmsgroup.eu, 86E Bozhenko Str., Kyiv 03680, Ukraine (044) 521-6095 (050) 416-6026
Jan Palmkvist, CEO
0/100
Stockholm, Sweden
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Sven Henniger
0/100
Hamburg, Germany
20
0
12
WND
Accounting outsourcing, tax consulting, basic legal consulting, interim management, legal address, office sublease, IT-services, recruiting, accounting competence test
WND
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Business 13
September 24, 2010
Tax authorities put squeeze on big, small businesses BY G R A H A M S TAC K AND MA R I A S H A M OTA STACK@KYIVPOST.COM, SHAMOTA@KYIVPOST.COM
Ukrainian customs, tax and financial monitoring authorities are stepping up pressure on businesses of all shapes and sizes in a bid to meet tough revenue targets. Business owners say the pressure is unjustified and will hurt the recovery from a sharp recession. However, top government officials – including Customs Service head Ihor Kaletnik – say they are justified in cracking down on fraud and other forms of tax evasion. “It’s no secret that businessmen reduce the declared value of goods in order to pay less to the state budget,” Kaletnik, the Customs Service head, said. The impetus for boosting revenue and clamping down on alleged evasion is clear. Ukraine is struggling to fill state coffers in order to meet conditions set by the International Monetary Fund in exchange for a $15.2 billion line of credit. Prime Minister Mykola Azarov, former head of the State Tax Administration, is leading the tax-collection drive. The crackdown is rippling through Ukraine’s economy – from the largest
Customs Service head Ihor Kaletnik
manufacturers and exporters, to some of the smallest ones. Metallurgy and agriculture giants this week, specifically, protested against the tightening grip of the state Customs Service. The Customs Service announced Sept. 16 that they were initiating a criminal case against Arcelor Mittal’s steel plant in Kryviy Rih, one of Ukraine’s largest steel mills. The criminal case alleges attempted customs evasion when importing 67,600 tons of coal worth almost Hr 203 million. According to the customs service, ArcelorMittal cleared the coal at customs for only Hr 107.5 million. ArcelorMittal denied the allegations, claiming that the customs declarations represent the fair value of the imported coal, and the customs service has suddenly changed its position. “ÀrcelorMittal Kryviy Rih supplies coal to Ukraine via a big international trader on a long-term contract. We have already made supplies according to this contract this year, previous supplies were cleared by the customs service without any remarks. We have not changed supplier or coal grade since then,” said company spokesperson Anna Honcharyk. Similarly, grain traders are complaining that their ships are being prevented from sailing due to government efforts to contain inflation. Volodomyr Klymenko, president of the Ukrainian Grain Association, said September 17 that over twenty cargo ships were currently unable to sail. “Nobody understands according to what principles ships are being cleared to sail or not,” Klymenko protested. But smaller businesses are also feeling the pinch. Car sellers say a new law will force their firms to monitor transactions and could scare away clients, while other merchants are apprehensive about whether a new tax code will slash tax breaks. Bogdan Prots, a car dealership director, said a new law that entered into effect on Aug. 21 transformed dealerships into “fiscal organs” that will have to report clients’ transactions to the tax
A steelworker at ArcelorMittal’s steel plant in Kryviy Rih on Sept. 11, 2008. (UNIAN)
authorities. The law on money laundering requires companies to report individual customer transactions of Hr 150,000 and more. Prots said this could frighten off customers. “It’s a shock,” he said. “Car sales in August were in fact down 9 percent on a cataclysmic 2009, and now this.” The government, however, has its reasons. And, when it comes to grain exports, some of them may be legitimate. Government officials have expressed fears of a surge in food prices, which would be unpopular and also could lead to a spike in inflation that exceeds parameters under the IMF agreement. Throttling grain exports through bureaucracy is one way to reduce food price inflation without infringing on commitments made to the World Trade Organization. Kaletnik, the head of the Customs Service, is also accusing grain traders of exporting high quality grain as lower
quality in order to lower customs payments, thus justifying the protracted process of clearing grain for export. “The grain market was untouchable, to put it mildly, for a long period of time. And there was everything going on you could imagine: Exporters declared one class of goods as another, one class of grain as another,” Kaletnik said. Kaletnik said five criminal cases had been opened against companies who had provided false information to the customs authorities. But he denied there are any current holdups for grain exporters. Kaletnik admitted that customs were behind their plan in terms of budget revenue generation, running at 85-90 percents of targets, but attributed it to less imported natural gas. Budget analysts have long said that government revenue targets are overly ambitious. In its memorandum with Ukraine
in July, the IMF openly questioned whether the government could fulfill its financial goals. According to the agreement, any shortfalls in planned revenues must automatically translate into spending cuts. With the year drawing to a close, pressure is mounting. Adding to the pressure is the legacy of the previous government under Yulia Tymoshenko, which extracted extra revenue from businesses by collecting taxes in advance and not reimbursing value added taxes to exporters. While measures to crack down on tax evasion are justified, the extent of Ukraine’s shadow economy and the state’s reputation for venality mean that such measures inevitably impact business confidence as a whole. As car dealer Prots said: “You can say that ‘honest citizens have nothing to fear from such measures.' But when 50 percent of the economy is informal [in the shadows], then everyone has something to be worried about.”
14 News
www.kyivpost.com
September 24, 2010
Yanukovych counts on friendly judges Æ1 They took effect in 2006, diluting presidential powers and strengthening parliamentary ones. They were supported strongly by Yanukovych, who sought to limit the authority of his rival, Viktor Yushchenko who became president after winning a repeat vote on Dec. 26, 2004. But more than five years later, Yanukovych has flip-flopped on the issue. Now, as president, he is pushing for stronger presidential rule and appears to have stacked the Constitutional Court with enough judges to make it happen. After monopolizing political power in Ukraine by forming a dominant coalition in parliament by bending the rules of Ukraine’s existing constitution, Yanukovych now appears close to grabbing the strong presidential rule that former president Leonid Kuchma had during his notoriously corrupt and authoritarian 10-year rule. The new composition of the Constitutional Court comes as the justices started on Sept. 23 to rule on whether the 2004 agreement to shift powers to parliament should be canceled. A majority of the 450 national lawmakers last summer asked the court to rule on the issue. A decision is expected within days. “In 1996, we had the best constitution in Europe (…) I acknowledge the mistake [we made in 2004], now it’s time to correct it,” Olena Lukash, Yanukovych’s representative at the Constitutional Court, said on Sept. 23. Yanukovych is believed to now have commanding control over the loyalties of the newly constituted Constitutional Court – with 15 of 18 justices in his favor, according to one court watcher. “There are now only three judges left who are critical of Yanukovych. These are judges appointed by [former President Viktor] Yushchenko,” said analyst Vladimir Fesenko, director of the Gorshenin Institute. Many experts and pro-democracy activists, including David J. Kramer, who takes over this month as executive director of U.S. based Freedom House, see the stacking of the Constitutional Court as the latest of a series of antidemocratic steps. “The internal developments this year in Ukraine concern me more than any foreign policy issues,” said Kramer, who served as Assistant U.S. Secretary of State for Democracy, Human Rights, and Labor from March 2008 to January 2009. “The way the government was formed in March, the postponement of local elections until the end of next month, the ramming through the Verkhovna Rada of the Kharkiv deal, efforts to change the Constitutional Court and the constitution itself, pressure on journalists and the case of the missing journalist Vasyl Klymentyev, and [Security Service of Ukraine] harassment of non-governmental representatives add up to a disturbing pattern that, taken together, do not bode well for Ukraine’s democratic development and threaten to reverse many gains in the area of democracy and human rights over the past five years,” Kramer added.
‘Losing independence’ Yaroslava Machuzhak, one of the more independent-minded judges recently replaced, was also visibly distressed
when discussing the future of the court. “I am not an optimist about the ability of the Constitutional Court to withstand pressure and make a decision … purely based on jurisprudential criteria,” Machuzhak said. “I fear the Constitutional Court is close to losing its independence.” Machuzhak said she resigned when it became obvious that the invitationonly Congress of Judges, which decides judicial appointments, would replace her and her colleagues on Sept. 16. Delegates voted overwhelmingly to replace Machuzhak and her three colleagues – Ivan Dombrovsky, Anatoly Didkivsky and Vyacheslav Dzhun – who all have resigned since August. The congress voted in three new judges – Mykhailo Gultai of Kharkiv, Mykhailo Zaporozhets of Lugansk and Natalya Shaptala of Donetsk. All come from the heartland of support for Yanukovych and his Party of Regions, and from regions long notorious for lacking independent courts.
Æ President appears well on way to appointing compliant judges who will approve his political agenda The candidacy of a fourth judge, Oleh Serhiychuk, from the Supreme Administrative Court, was supported by Serhiy Kivalov, the Party of Regions parliamentarian and head of the Verkhovna Rada justice committee, according to the Ukrainski Novyny news agency. Kivalov became notorious as head of the Central Election Commission during the rigged Nov. 21, 2004, second-round presidential election in which officials declared Yanukovych the winner, triggering the Orange Revolution that led to Yushchenko’s ultimate victory in the infamous Dec. 26, 2004, repeat vote that followed. Whatever the new qualifications are for getting on the Constitutional Court in the Yanukovych era, it appears that constitutional expertise and independent decision-making are no longer desired. Machuzhak said that she and the other departing judges had opposed the Constitutional Court ruling earlier this year that sanctioned how Yanukovych’s allies formed a ruling coalition in parliament in March. In contradiction to an explicit law and a 2008 Constitutional Court ruling on the matter, the justices this year allowed coalitions to be formed by individual deputies – regardless of party affiliation – even though voters
No longer on the Constitutional Court
Anatoly Didkovsky
Ivan Dombrovsky
elected them on the basis of political party lists. This ruling, derided by critics as the start of judicial decisions that rubber-stamp administration policy, allowed Yanukovych’s Party of Regions to unseat the government of archrival Yulia Tymoshenko, who as prime minister held on to a shaky majority before then. According to media reports, three of the four departed Constitutional Court judges – Dombrovsky, Didkivsky and Machuzhak – had also opposed Anatoly Golovin’s candidacy as chairman of the Constitutional Court in June. The opposing judges were effectively sidelined from participating in court work in the run-up to the vote on the new chairman, the reports suggested. Like three of the four new judges, Golovin also hails from Yanukovych’s stomping ground in eastern Ukraine. His career started in the Soviet KGB and after independence he served 13 years in the Donetsk branch of the Security Service of Ukraine, or SBU. Golovin then switched to the state prosecutor’s office, where he rose to become deputy head prosecutor before joining the judiciary. The independence, honesty and competence of the Constitutional Court have been challenged for at least a decade. And the latest developments will likely sully its reputation further. In 2004, the judges ruled that exPresident Leonid Kuchma, in office from 1994 to 2005, was eligible to run for a third term. The ruling came despite the Constitution’s stipulation that a president should be limited to two terms. The court further damaged its reputation in 2007, when Yushchenko fired four of the 18 justices to avoid the prospect of an unfavorable ruling on his right to disband parliament and call early elections that year. According to court watcher Fesenko, only three of the current members of the constitutional court can be considered experts in constitutional law. The rest, he said, have been appointed for reasons of political loyalty “both under the previous president as well as under the current one.” At the opening Constitutional Court hearing on Sept. 23, one acknowledged constitution expert among the judges warned of major consequences that could follow if the constitutional changes from 2004 were ruled “unconstitutional.” “What will we do with the current laws that will no longer conform to the constitution?” asked Viktor Shishkin, who was appointed under Yushchenko’s presidential term.
Vyacheslav Dzhun
According to parliamentarian Serhiy Vlasenko of the oppositional Bloc of Yulia Tymoshenko (ByuT), “most judges now have backgrounds in state prosecution and security services.” Vlasenko said he expects them to vote on pro-presidential constitutional changes “with eyes closed and hands raised.” However, while addressing the Congress of Judges on Sept. 16, Yanukovych pledged to support the independence of the judiciary. “In a state that aims to become a state of law, courts have to be authoritative, powerful and self-sufficient – genuinely independent,” Yanukovych said. “I believe my presidency’s main goal lies in taking Ukraine out of the group of outsiders among European countries. (...) This can’t be done without independent and professional courts. Yanukovych also promised to eradicate “telephone justice,” the Soviet-era practice of political interference in judicial decisions.
Back to future The agreement to change the Constitution came during the 2004 Orange Revolution. The changes were pushed by the tandem of Yanukovych and Kuchma, the outgoing president, on Yushchenko, his successor, as part of a bargain to hold the decisive Dec. 26, 2004, Yushchenko-Yanukovych rematch. Many believe Yushchenko betrayed the Orange Revolution by acquiescing to these changes.
Æ Strong presidential rule seen by Yanukovych as essential to making muchneeded changes The Kuchma-inspired changes expanded the powers of the Verkhovna Rada, giving lawmakers the right to nominate and ratify the prime minister, as well as ratify the president’s nominations for defense, interior and foreign ministers. The prime minister nomi-
Yaroslava Machuzhak
nated other government members, subject to ratification by the parliament. Supporters said the revised Constitution, which took effect in 2006, was more in line with European parliamentary democracies. But a growing chorus of critics argues that the changes muddled authority between the presidency, government and parliament, thereby contributing to the political conflict and gridlock that characterized the ruling tandem of Yushchenko and Tymoshenko. Moreover, the argument that the procedure for making the constitutional changes in 2004 was legally flawed is not new, said Bohdan Futey, a U.S. Court of Federal Claims judge who is of Ukrainian roots and has advised Ukraine on constitutional issues. Futey, in fact, came to the same conclusion in a legal opinion to Yushchenko in 2005. Among his arguments: the Constitutional Court had already voted against similar changes to the Constitution in May 2004 and, according to the Constitution, a year had to pass before repeat voting is allowed. In addition, the Constitutional Court ruled in October 2005 that changes to the political system must be approved by referendum before they go into effect. According to Fesenko, constitutional changes have to be approved item by item, whereas the numerous changes introduced in the 2004 agreement were enacted by one vote in parliament. In addition, changes were made to the law after it had been cleared by the Constitutional Court in 2004. The precise legal arguments may matter little to Yanukovych, who wants stronger political powers to push through urgent changes, but may lack the 300 votes required in the Verkhovna Rada to change the Constitution legislatively. Therefore, a favorable court ruling would be the easiest way. In the very least, it could build moral ground in parliament for Yanukovych’s push to return the country to stronger presidential rule. But it remains very much unclear if Ukraine’s oligarch-dominated parliament would consent to handing so much authority back into the hands of one individual. Bitter clashes between parliament and Kuchma during his 10-year reign are still fresh in the memories of many lawmakers. Moreover, many top businessmen could fear the fate of Mikhail Khodorkovsky, the Russian billionaire who was thrown into jail under a strong Russian presidency. Kyiv Post staff writer Graham Stack can be reached at stack@kyivpost.com.
www.kyivpost.com
News 15
September 24, 2010
Prosecutors are investigating who gave order to kill Georgiy Gongadze Æ1
On Sept. 14, prosecutors announced their conclusion that Interior Minister Yuriy Kravchenko – a close Kuchma subordinate who died mysteriously from two gunshot wounds to the head on March 4, 2005 – had ordered Gongadze’s killing. The finding was, according to prosecutors, based on the confession of former police general Oleksiy Pukach, jailed in the case since his arrest on July 21, 2009. Pukach also implicated Kuchma and parliament speaker Volodymyr Lytvyn in the crime and cover-up, according to Valentyna Telychenko, a lawyer for the slain journalist’s widow, Myroslava Gongadze. Lytvyn served as Kuchma’s chief of staff when the murder occurred. Prosecutors, through spokesman Yuriy Boychenko, confirmed to the Kyiv Post on Sept. 23 that the pre-trial investigation into the murder has been prolonged until Dec. 14. But they refused to discuss whether Kuchma, who ruled from 1994 to 2005, and Lytvyn are suspects. Asked if prosecutors are investigating whether Kravchenko could have received orders from superiors to murder Gongadze, Boychenko said such details are part of the ongoing investigation. Kuchma and other top officials were allegedly recorded as plotting ways to get rid of Gongadze, whose critical articles on Ukrainska Pravda had irritated the administration that throttled press freedom throughout much of its authoritarian rule. Kuchma has always denied any involvement in Gongadze’s murder, or in any of the other numerous crimes he was allegedly caught plotting on hundreds of hours of secretly recorded
conversations made public by his former bodyguard, Mykola Melnychenko, in 2000. Kuchma, as he has in the past, continued on Sept. 15 to blame the murder and the Melnychenko tapes on a foreign power, then went on to add that agents from the U.S. Central Intelligence Agency were present at [anti-presidential] demonstrations following Gongadze’s disappearance.
U.S. Ambassador John F. Tefft
“It’s an international scandal designed to compromise Ukraine,” Kuchma said. “They didn’t give me or Ukraine any peace for five years. This was paid for. Money makes everything possible.” Tefft, however, also noted that former U.S. Ambassador to Ukraine Carlos Pasqual refuted similar allegations in 2001. “The interest of the United States is a dynamic, vibrant Ukraine, a Ukraine with a strong econ-
omy, a Ukraine which is pluralistic, in which there is real competition of ideas and views,” Pascual said at the time. The same holds true today, Tefft said. “There’s no basis to [this allegation] at all,” he said. Serhiy Lyovochkin, President Viktor Yanukovych’s chief of staff and a former top Kuchma aide, defended the ex-president’s statement without saying whether the current administration also believes that Gongadze’s murder was a foreign provocation. “Kuchma is a politician with a vast amount of experience. He likely had grounds to say this,” said Lyovochkin, who served as Kuchma’s assistant in 2001 and top aide in 2002-2005. At the same time, the Yanukovych administration has called on law enforcers to thoroughly investigate the Gongadze case. Lyovochkin said that it would not be good if the entire crime is “hung on one person.” In the Sept. 15 remarks, Kuchma also said that he is satisfied that the United States under President Barack Obama has changed its view of the world and is no longer trying to spread democracy around the world. Tefft, in an interview with the Kyiv Post, refuted such a notion. The ambassador, who arrived in Ukraine last year after serving in the former Soviet republic of Georgia, said the United States remains as committed as ever to promoting the independence, sovereignty and territorial integrity of Ukraine. “We say this over and over again because we mean it,” Tefft said. “It’s been the same through successive presidents. Ukrainians from all walks of life and all political persuasions understand that.”
More than 150 people gathered on Independence Square on Sept. 16 to mark the 10th anniversary of journalist Georgiy Gongadze’s murder. The banner says: "Those who ordered the killing must go to jail.” The long-stalled investigation has gained momentum with the confession of Oleksiy Pukach, a former police general who reportedly implicates former President Leonid Kuchma and parliamentary speaker Voldymyr Lytvyn.
Here are other excerpts from the Sept. 22 Kyiv Post interview with Tefft: • While acknowledging that Obama is focused on U.S. economic recovery, and the wars in Iraq and Afghanistan, Tefft said better relations with Ukraine are as important as ever. “We’re not giving up. I sometimes find it amusing that some of my Ukrainian friends are asking: ‘Are you guys quitting? Are you guys really withdrawing from Ukraine?’ I say: ‘Absolutely we’re not giving up.’ I think there’s a perception sometimes that the [U.S.] ‘reset’ policy with Russia means that Ukraine is not getting as much attention. That is not true,” Tefft said. • About whether Ukraine can move forward without confronting the great unsolved crimes of the past: “Those historical wrongs don’t go away. They need to be righted for every society,” he said. • About his goals for U.S.-Ukraine relations: “I would like to see some serious reform, serious cuts in corruption. I would like to see Ukraine’s economy improve.” • About Georgia’s success in improving its investment climate, economy and in cutting corruption: “The United States worked really hard to help them develop their reform program and to help them do the things that are, frankly, helping make
that country an economic and, I think, political success. For example, Georgia is now in the top 10 or 15 in the World Bank survey for ease of doing business.” • About whether human rights in Ukraine still matters to the United States: “Human rights does matter… We are concerned about democracy. We don’t want to see backsliding. We stand for media freedom. We raise these issues repeatedly.” • About the future of exchange programs – such as the Future Leaders Exchange Program for high school students and scholarships for university students – that send roughly 1,000 Ukrainians to America each year: “Our goal is to try and get as many young people to the United States as possible.” • About RosUkrEnergo, the controversial gas intermediary part-owned by Russia’s Gazprom, Ukrainian billionaire Dmytro Firtash and others: “We’re concerned about corruption and the way the process in society works. We also want to see a more open market here for big energy companies. We think it is in Ukraine’s interest. The green light is on for the potential of bringing Western majors to deal with offshore oil and gas, shale gas, coal and methane.” Kyiv Post chief editor Brian Bonner can be reached at bonner@kyivpost.com
16 News
www.kyivpost.com
September 24, 2010
Tymoshenko: ‘I haven’t yet completed my role’ Æ1
Largely squeezed off national television channels, dismissed by critics as compromised by her alleged failures as prime minister, and with several of her allies under arrest or investigation, Tymoshenko now needs all the streetfighting skills she has learned over her colorful political career. In a wide-ranging interview with the Kyiv Post earlier this month, she demonstrated that she still has the touch which helped her rally massive crowds of Orange Revolution voters, and continues to inspire millions of voters today. In typical straight-talk, she accused the authorities of persecuting her supporters, seizing authoritarian control over the country and trying to sideline her party. She pledged to modernize her party, come up with a strategy to solve the country’s problems and fight back against President Yanukovych’s dominant Party of Regions.
Ex-Prime Minister Yulia Tymoshenko on Sept. 13 in Kyiv. (Oleksandr Prokopenko)
Opposition leader Tymoshenko dismissed claims that she had already had her chance to improve the country in her two stints as prime minister in 2005 and 200810. She said that constant pressure on her from then-President Viktor Yushchenko meant she was virtually in opposition. She faulted other opposition figures, staking her claim as the politician with the best shot of standing up to Yanukovych’s ever bolder steps at seizing more power. “Looking for new faces is a new dead end. We should be looking for new ideas,” she said. She wrote off former Parliamentary Speaker Arseniy Yatseniuk as having “no vision, no freedom.” Yushchenko “has no future,” she said. Svoboda leader Oleh Tiahnybok is “the kind of opposition Yanukovych dreams about,” as his nationalist message won’t gain popularity across the country. She dismissed Deputy Prime Minister Sergiy Tigipko – whom polls place narrowly behind her in third, with the president in first place – as a puppet of the Regions Party. “Strong Ukraine [Tigipko’s party] is a clone of Spravedlivaya Rossiya,” she said, referring to the pro-Kremlin opposition party, A Just Russia.
New ideas? Following the election defeat to Yanukovych (which she still calls fraudulent), Tymoshenko suffered disappointment and exhaustion after battling the economic crisis as prime minister and fighting a tough campaign, her aides say. Now she says she is ready to revamp her Fatherland Party. She says she’s working on creating a strategy for the country, including a package of laws and reforms and a new constitution. According to Tymoshenko, the party will be decentralized, its ranks “cleansed” – 28 lawmakers were kicked out of her Bloc of Yulia Tymoshenko on Sept. 21 – and converted from a party that is run by “leadership directives.” Elections will be held for key party posts. But the decoupling of her party from her dominating image will be tough, as she herself admitted. Political analysts said this is hardly likely, as leader is the fundamental building block of any Ukrainian party, and an advantage Tymoshenko holds as a charismatic figure.
Under pressure The first moves to change her party have met with resistance. After the party leadership in Kyiv and Lviv oblasts was changed, Tymoshenko said those dismissed formed a “fictitious” party called Fatherland, which intends to field candidates in local elections. She said this was a trick by the presidential administration to squeeze her out. Serhiy Lyovochkin, Yanukovych’s chief of staff, said earlier this month that these were “internal conflicts” within Tymoshenko’s party. Tymoshenko claimed Yanukovych’s power is now “absolute,” across the executive, legislative and judiciary. She said her allies are being put under pressure to join the coalition. “They (the coalition) are people … who live by their own rules, not laws,” she said.
recent tenure as premier are currently behind bars over the 2009 appropriation of 11 billion cubic meters of gas from middleman gas trader RosUkrEnergo, whose Ukrainian owners are close to Yanukovcyh’s inner circle. Tymoshenko said the complex agreement was struck with Russian Prime Minister Vladimir Putin after RosUkrEnergo failed to settle a debt to Gazprom of $1.7 billion for gas. Naftogaz paid for it, she said. It was agreed that Naftogaz would take the gas in lieu of gas transportation fees for Russia using Ukraine’s pipelines. Ukrainian billionaire Dmytro Firtash, co-owner of RosUkrEnergo along with Gazprom, took Naftogaz to an international arbitration court, claiming back the gas plus penalties. The case was finally won by RosUkrEnergo,
Æ Tymoshenko relishes her opposition role and dismisses Yatseniuk, Tiahnybok and Tigipko The presidential administration has repeatedly dismissed Tymoshenko’s claims as an insignificant blabbermouth. But her allies claim to be feeling the pressure not only in parliament. Several senior officials from her government are in jail and under investigation for corruption. “Yanukovych sees the opposition only in prisons, in exile, without access to media … and even without the right to carry out public actions,” she said.
Gas deals The net is closing in on Tymoshenko. Oleksandr Turchynov, her closest confidant, was called in for questioning by the SBU (State Security Service) three times in recent days. The former state customs chief and deputy head of state gas company Naftogaz under Tymoshenko’s most
Tymoshenko claims, after “capitulation” by the Ukrainian side. Naftogaz must now return 12.1 billion cubic meters of gas, currently worth around $5 billion. Tymoshenko repeated claims that Energy Minister Yuriy Boyko and Lyovochkin are the links in the chain between the authorities and RosUkrEnergo and its Ukrainian coowners Firtash (45 percent) and Ivan Fursin (5 percent). She said Firtash had overtaken Rinat Akhmetov, Ukraine’s richest man, as the major financial supporter of Yanukovych’s Party of Regions. Both sides deny links. Asked what evidence she had of Lyovochkin’s involvement in RosUkrEnergo, Tymoshenko replied: “People in politics know who is working with whom and who is carrying out business with whom.” Lyovochkin, despite admitting friend-
ships with Firtash and Fursin, denies any business links. Boyko, at a sitting of the parliamentary investigative committee on the deal last week, admitted he had been on RosUkrEnergo’s board of directors, but said that he no longer is. But he could not provide documents to prove that he had officially been relieved of these duties. Moreover, documents the committee has included as evidence show that Boyko has had business relations, of sorts, with Firtash, holding power-of-attorney over the billionaire’s assets in the past. Roman Zvarych, chairman of parliament’s investigative commission on the RosUkrEnergo case, said: “These documents clearly indicate that there was at one time a business arrangement between Boyko and Firtash. And this may indicate grounds for possible collusion on the part of Boyko, specifically in the Stockholm arbitration case, in the ruling on behalf of RosUkrEnergo.” Zvarych, considered a Tymoshenko ally, added: “But this document alone would need to be supported by an entire series of evidence to prove the case. Boyko, in turn, has given testimony where he has claimed that his business relationship with Firtash and RosUkrEnergo was cut on his initiative long ago. When asked if he remembered what year this was, he could not state with any certainty. And when asked if he could document these words, he could not provide such documents.” With evidence building up to support Tymoshenko’s case against RosUkrEnergo and its close links with Yanukovych, the authorities appear to be taking harder shots at those close to her. It remains unclear whether they will go after Tymoshenko herself. It’s a prospect she seems almost to relish, and she has in recent weeks dared authorities to jail her, instead of her closest allies, insisting she gave all the orders for actions which they are charged for. “The only thing that’s stopping him is that it could increase the public's trust in me, turn me into a hero,” she said.
That mistake has been made before, when she was briefly thrown in jail under ex-President Leonid Kuchma in 2001 on corruption charges, which were eventually withdrawn, before emerging as a fearsome opposition champion. Jailing Tymoshenko could build sympathy and invigorate supporters. Analysts say if she’s arrested, it will be her political lifeline. Instead, authorities seem inclined to cut her off from potential supporters. “I don’t think they’ll touch her, as the same thing could happen again,” said Yuriy Yakymenko, head of political programs at the Razumkov Center. “It’s better to put pressure on her and weaken her.”
Comeback? Can Tymoshenko launch a comeback? The latest polls released by the Razumkov Center in late August – which she claims underestimate her support – show her party with 13.7 percent backing, down from 16.0 percent in June. Her negative rating of people who “do not support” her is the second highest among all Ukraine’s leading politicians, after Yushchenko, at 62.5 percent. But a ray of light for Tymoshenko comes from the plunge in the Party of Regions support, from 41.2 percent in June to 27.6 percent in August. She will look to capitalize on the unfilled promises and any growing discontent with Yanukovych’s increased grip on power. “[People] tasted freedom after the Orange Revolution,” she said. “Now people are being offered something different. … Fear has seized everyone. They probably won’t hit the streets, but they know how to behave toward this team – that’s where the hope is.” “She is the only and most radical political force in the opposition,” said Razumkov’s Yakymenko. “If people become disappointed with the political and economic situation, they are likely to turn to her.” “I haven’t yet completed my role and task in politics, because the actions of Yushchenko, after he became president, took that possibility away,” Tymoshenko said.
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News 17
September 24, 2010
Ukrainians in New York greet Yanukovych with snub, protest
Ukrainian President Viktor Yanukovych speaks during a meeting on biological diversity at the United Nations on Sept. 22. (AP)
BY OL ENA TREGUB
Yanukovych says he wants closer ties with U.S., European Union New York (AP) – The Ukrainian president, who has repaired relations with neighboring Russia and taken his country out of the running for NATO membership, said on Sept. 22 he wants to improve strategic relations with the United States. Viktor Yanukovych also said that despite restoring historically close ties with fellow Slavs in Russian, his nation is determined to win membership in the European Union. “The people of Ukraine and Russia are very close. And this allows us to solve many economic issues. It’s a good factor, The human factor,” he said. Before Yanukovych was voted into the presidency this year, the Ukrainian government under pro-West former President Victor Yushchenko had turned its back on Russia, which dominated Ukraine in the former Soviet Union. That trend that was immediately halted when Yanukovych took over the presidency. In his first gesture of goodwill toward Moscow, Yanukovych signed a deal allowing Russia to extend its lease on the Black Sea Port of Sevastopol for 25 years when the current agreement expires in 2017. Russia responded by giving Ukraine deep discounts on natural gas. The Kyiv government subsequently passed a measure pushed by Yanukovych that makes Ukraine a so-called “non-bloc” country, meaning it will be technically nonaligned with any global grouping, including NATO. That, Yanukovych told The Associated Press in an interview, does not preclude cooperation with NATO nor the country’s bid for European Union membership. “Ukraine has chosen its road,” Yanukovych said in his suite at the Four Seasons Hotel. “It’s the road toward the European Union. And we are carrying out our plans and programs in that direction. I’m confident this European road of Ukraine is not going to negatively affect relations with Russia.” But as for NATO membership, Yanukovych said, “Any attempt to take this or the other side will disturb the balance and will create potentially dangerous situations.”
Even so, the president said, he felt strategic relations with Washington has not reached a useful level. “If we want these strategic relations to be on a par with the objectives we have set, I believe we have to increase the level of the commission we have with the U.S. I think we have to elevate this activity.” He was speaking of a joint U.S.-Ukraine commission set up to guide bilateral relations under the previous pro-Western government. During her last trip through Central Europe, U.S. Secretary of State Hillary Rodham Clinton held a joint news conference with Yanukovych and said his outreach to Russia was not a concern. She said the Obama administration supports efforts by Ukraine to deepen its relationship with Russia, so long as it also remains open to closer ties to the United States and Europe. Clinton made no explicit criticisms of Ukraine’s human rights record, instead telling Yanukovych the United States is “deeply impressed” by the democratic gains in Ukraine. Nevertheless, human rights and press freedom advocates remain concerned about Yanukovych’s course on those issues. Last month, Yanukovych took control of the case of an investigative reporter who has gone missing. In that role, Yanukovych ordered top law enforcement officials to “make every possible and impossible effort” to find Vasyl Klymentyev, the editor of a newspaper in the eastern city of Kharkiv. The New York-based Committee to Protect Journalists issued a statement earlier in August voicing concerned about Klymentyev’s well-being and urging Kharkiv authorities to carry out a thorough investigation. Klymentyev reportedly was threatened after refusing to accept a bribe to halt publication of a story about a regional prosecutor accused of accepting bribes to close criminal cases. Yanukovych said such problems were not unique to Ukraine. “Such problems can be seen occurring in every country in the post-Soviet space. We have them in Ukraine too,” he said. “They are separate, individual instances. This is not the policy of the government.”
Ukrainian President Viktor Yanukovych received a lukewarm welcome on his second trip to the United States as president. Yanukovych spoke at the United Nations General Assembly meeting in New York on Sept. 22-23, but top American leaders appeared to have far less interest in him than on his previous visit in April. During his spring visit, Yanukovych won international acclaim and a oneon-one meeting with U.S. President Barack Obama at a nuclear security summit. Obama praised Yanukovych at the time for agreeing to give up Ukraine’s stockpile of enriched uranium, essential for building nuclear bombs. This time, there was no ObamaYanukovych meeting. Moreover, a coalition of UkrainianAmericans spurned Yanukovych’s offer to meet. Instead, about 200 of them took to the streets to vigorously protest the Ukrainian president’s policies since taking office on Feb. 25. Before the U.S. trip, the Yanukovych administration took pains to appease the America-based diaspora, which has mobilized regularly against the Ukrainian leader. The issue which strongly turned Ukrainian-Americans against the Kremlin-friendly Yanukovych is his controversial gas-for-fleet deal with Moscow in April. Yanukovych received a 30 percent discount on Russian natural gas imports in exchange letting the Russian Black Sea Fleet remain based on the Crimean peninsula through at least 2042. Yanukovych seemed to be trying in recent days to win over his American critics ahead of his trip to New York. The web section on the Holodomor, the Josef Stalin-ordered famine of 193233 that killed millions of Ukrainians, had been removed from the official presidential website after Yanukovych’s inauguration in February. But it mysteriously re-appeared in an edited version – albeit without reference of the famine as an attempted genocide against the Ukrainian people. Also, coming several days before the U.S. trip, Yanukovych sent a letter to the Ukrainian Congress Committee of America calling for dialogue. But, upset with what they view as his pro-Russian and anti-democratic policies, the congress responded to his overture by organizing street protests on his visit. In the letter addressed to the UCCA, Yanukovych openly asked for support instead of criticism. He promised to declassify all the documents related to the Holodomor, to increase the funding of the Lviv museum “Turma na Lonskoho” (Prison on Lonsky Street) and to create public television free of political interference. But the UCCA rejected the letter as an empty promise and “insincere.” In fact, some parts of the president’s letter upset diaspora leaders further. Askold Lozynskyj, a New York attorney and prominent member of Ukraine’s diaspora community, said: “Yanukovych promised to solve the
About 200 Ukrainian-Americans in New York took to the streets on Sept. 22 to protest President Viktor Yanukovych’s policies. Ukrainian diaspora groups in the U.S. also rejected Yanukovych’s invitation to meet with him. (UNIAN)
ÆDespite overtures, UkrainianAmericans reject offer to meet with Yanukovych
Some think Russian Prime Minister Vladimr Putin is calling the shots with President Viktor Yanukovych.
roblems with ‘Turma na Lonskogo’ museum by transferring it under the supervision of the Institute of National Memory, which is headed by no other than Valeriy Soldatenko!” Soldatenko is a Communist Party leader who has recently claimed that he never gave up his party membership card. He also denies the Holodomor was an act against Ukrainians and talks in a derogatory way about the Organization of Ukrainian Nationalists,
which fought for Ukrainian national independence through the mid-20th century, and its military wing, the Ukrainian Insurgent Army. Both movements are viewed by many in western Ukraine and abroad as proUkrainian freedom fighters and heroes for their efforts to attain Ukrainian independence during World War II. But propaganda from the Soviet Union, an ally of Nazi Germany until attacked, painted these Ukrainian movements as Nazi collaborators. Olexander Motryk, the Ukrainian ambassador to the United States, called Lozynskyj several days before Yanukovych’s visit and asked what the president could do to avoid the street protest. Lozynskyj answered: fire Soldatenko, Education Minister Dmytro Tabachnyk and recognize the Holodomor as genocide. Instead of accepting Yanukovych’s invitation for a metting, UkrainianAmericans took to the streets of New York with slogans, like “Ukraine’s sovereignty is not for sale,” “Russian fleet – out of Ukraine,” “Impeach Yanukovych,” “Worse than Kuchma,” “No slavery for Ukraine,” “Yanukovych – Judah of Ukraine,” “Yanukovych – anti-Ukrainian and anti-democratic dictator,” and “Stop KGB!” “We understood that there is no sense to meet with Viktor Yanukovych,” says Ukrainian Congress Committee of America head Tamara Olexy. “The president has not yet answered the list of grievances that the World Congress of Ukrainians presented to him at the meeting in June of this year despite his promise.” Many analysts said that Yanukovych’s attempts to appease Ukrainian diaspora communities abroad derive from his administration’s worries of their influence on Western governments. But influence aside, the mere fact that the Ukrainian president has to face a demonstration anywhere he goes in the West, generates critical public attention to how Ukraine is governed. Olena Tregub is a freelance American journalist.
18 Opinion
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September 24, 2010
Gorchinskaya: Dangerous regional splits form in nation Æ4 is a closed club of the rich and criminals (often both at the same time). Many of its members would be in prison in any country west of Ukraine. Here they enjoy impunity due to parliamentary immunity and might even get their term extended under the president’s new initiative – if they behave and give him what he wants. Public finances are like the goose that lays golden eggs – but only for those privileged few who keep it safely caged in their back yard. And, obviously, they don’t want to share the eggs. At the same time, those outside the privileged caste of geese keepers who actually create the wealth are turned into criminals through over-regulation, over-taxation and excessive powers of multiple state inspections. This system has been in place for a long time, but after Yanukovych came to power in February, a slight nuance has been added in the form of persecution of the opponents. Apart from the obvious political and humanitarian aspects, it has a long-term economic effect: any businessman will tell you that starting up projects in a country where the opposition is persecuted is a useless waste of time. That’s because if you make a deal with one team, it might just get reversed by the next team – and there is nothing to guarantee your economic rights because none of the institutions work. Property rights only exist for those who have power.
For example, if you happen to have built a nice yacht club in the last 11 years like Andriy Senchenko did of Yulia Tymoshenko’s bloc in parliament, and then it turns out that the new president’s elder son also likes yachting, then you might find yourself fighting a losing battle against the whole state apparatus for your property. There are thousands of such examples. Worse still, nothing is likely to change. Here are two reasons why. First of all, those who can make a difference are benefiting from the system, thus speeding up the car towards the suicidal abyss. Secondly, those who are unhappy don’t matter. They did matter once in recent history, during the Orange Revolution of 2004. It was then that people came out to the streets en masse to reverse an unprecedented rigged election in Yanukovych’s favor. The memory and fear of mass riots still lives on in those who are in power now. Hence the law on public gatherings that could force those interested to apply for rallies three days in advance, hence the multiple police cordons to fence off the feeble, even pathetic, oppositional demonstrations (as if they carry any threat), hence the ban of potential demonstrators from traveling to Kyiv. But revolutions are done with for now: two of them rarely happen in a single generation. That’s why no matter how many times opposition leaders
ÆAre there any worthwhile Ukrainians who can lead in healing nation’s wide rifts? cast the riot spell, it won’t materialize. Besides, each revolution needs its own Che Guevara. And Ukraine has no promising leaders to speak of, and none seem to be coming up any time soon. The nation feels betrayed by its messiahs, both Orange and Blue, to fight under their banners any longer. So, if the mass uprising is not an option, how is the national frustration to be vented? In a functioning democracy it would probably be through elections. And indeed it happened in Ukraine last winter, when the blue camp brought
Yanukovych to power. But this election completed the political cycle started by the Orange Revolution. Top it up with a lack of new alternatives and an ongoing power grab, and it becomes obvious that a catharsis through elections might not be possible for some time. There are two options left. One is guerilla-style resistance movements, with suicide bombers and underground networks. But once again Ukraine does not have a group that is large and powerful enough yet frustrated enough to enact this plot (like the Chechens in Russia once had). The remaining option for venting frustration is the country’s breakup – and that option is eerily becoming more realistic. The idea itself is not new, but the attitude to it is changing now. What used to be a joke subject for dinner conversations in western Ukraine is now pronounced aggressively and repetitively. It used to be funny when division advocates talked about the criteria they would use for issuing passports of the newly-proclaimed Western Ukrainian Republic. Now the talk is about values, not passports. “It’s not working out,” they say. “Eastern Ukrainians don’t share our values. And it’s the values that make the basis for creating any state. And it’s undemocratic to force our own upon them. Divorce is the only option.” Opinion-makers have joined in the choir. Yuriy Andrukhovych, for exam-
ple, a best-selling writer, has recently given a number of interviews on the subject, sparking a nationwide discussion and legitimizing the subject further. But even scarier is that the debate is now starting to translate into action. One businessman, a native of Kyiv, recently told me he is getting ready to buy an apartment in Lviv to move over in case the nation does split up. He has made his choice: the nation he wants to build is more like the alternative that western Ukrainians have to offer. And last, but not least … the nation’s rulers – those who can prevent the split – are in denial that it might happen. But simultaneously, they are racing faster in their aggressive, persistent pursuit of the very divisive policies and politics that are bringing the national suicide ever closer. That crazy kamikaze car drive needs to stop. It’s just not very clear how, who will take over as driver and where they will take Ukraine. What is clear, is that Russia’ leadership is eager to jump and take over the wheel; meanwhile, Ukraine’s Western partners are afraid of even getting close. Are there any Ukrainians worthwhile, honest and ready to get behind the wheel, to become the nation’s driver instead? Katya Gorchinskaya is opinions editor of the Kyiv Post and can be reached at gorchinskaya@kyivpost.com
Schreiber: Yanukovych's second trip to U.S. not likely as pleasant as first visit Æ5 concerns over his team’s policy toward civic society evokes,” argues Lukasz Adamski, an analyst at the Polish Institute for International Affairs. “That’s why the Berlin visit was not a big success for Yanukovych. He was treated by Merkel and the German government with caution and with some reservation.” But the pointed question from “Frau Nein” inspired backlash. Yanukovych barely mentioned Ukraine’s EU aspirations in his speech at the Hotel Adlon. The next day he was on a plane to China, where he received a hero’s welcome from Chinese Presdient Hu Jintao, and over $4 billion in trade contracts. Knee-jerk reactions like this from Yanukovych should cause Obama to pause before he preaches. The Beijing trip sent a clear message to the West: Ukraine prefers trade made in China – with no strings attached. Another reason Obama finds himself in an uncomfortable position is Russian reset. It’s no secret that Moscow has always favored Viktor. So, Yanukovych is the dream candidate for an American administration attempting to start a new chapter in its relations with Moscow. At least on Russia, U.S. and Ukrainian interests would seem to match. However, James Sherr, an expert at London’s Chatham House, argues the two policies of rapprochement are fundamentally different. “The United States is not resetting
Æ It’s clear that Ukraine prefers trade with China - with no reprimands or tough strings attached relations with a country that questions its right to act as an independent state,” he says. “Ukraine will benefit from friendship with Russia when Russia no longer questions that right or tries to curb it in practice.” Positive Russian-Ukrainian relations are in everyone’s best interest. That supposition shouldn’t nullify Ukraine’s right to autonomy. Before the United States’ “special relationship” with Britain ever began, there were years of war and tea dumping. That gives us a different take on the issue than Western Europeans. We want to see Ukrainians responsible for building their own nation, independent of big brother. Whether it amounts to pride or pragmatism, Europe doesn’t always see it that way. “Many in the EU feel that it would be Russia that has the fortitude to force Ukraine into more transparency,” said Asle Toje, author of a book called The European Union as a Small Power. Toje characterizes the current
relationship between Europe and its Eastern neighbor as a case of mutual estrangement. “The E.U. experience has taught them that dialogue doesn’t work. And it’s taught them that the road to Kyiv goes through Moscow for now,” he said. If in the end, deferring to Moscow remains Brussel’s best strategy, perhaps it is time for the United States to show leadership. Dr. Martin Luther King made another observation, not as famous as his “I Have A Dream” speech, but certainly more applicable to Ukraine today. It begins with the phrase: “Human progress is neither automatic nor inevitable…” Obama might consider using these words to reopen Ukraine’s dialogue with the West. William Schreiber is a Boren national security scholar (http://www.borenawards.org) based in Warsaw, Poland. He can be reached at wms@gwmail. gwu.edu
Lifestyle Play | Food | Entertainment | Sports | Culture | Music | Movies | Art | Community Events
September 24, 2010
WITH KATYA GORCHINSKAYA ORCHINSKAYA YA YA GORCHINSKAYA@KYIVPOST.COM @KYIVPOST.COM
Editor’s note: Art Critic is an occasional feature on the capital’s art scene. It is written by journalists to give readers down-to-earth reviews.
Zorba the Greek, a ballet in two acts, is back in opera
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Tina Karol during the Eurovision song contest in 2006. (Courtesy)
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Tina Karol: Hot Stuff
At 15, she was a chubby Jewish teenager singing in a school choir. At 25, she is on the cover of many glamour magazines as one of the most beautiful and popular singers in Ukraine. Tina Karol became the princess of Ukrainian pop in no time by recording three albums in less than three years, one of which sold more than 100,000 copies. Yet in person, she still comes through as a baby dreaming about a trip to Disneyland and eating the whole cake on her own. Karol, whose real surname is Liberman, sang her way into show business when she was 21. At the “New Wave” competition in Latvia, the factory for aspiring starlets, she caught the eye of Russian diva Alla Æ22
Best-selling Polish writer Janusz Leon Wisniewski strikes nerve with Ukrainian audience Æ23
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Zorba the Greek, a perky and temperamental ballet at the National Opera House, will run for the fourth season at the National Opera Theatre in Kyiv as of Sept. 30. The ballet received a 15-minute standing ovation during the last show in the previous season, so it’s well worth running again. Composed by Mikis Theodorakis in 1988, and based on a bestselling novel by Nikos Kazantzakis published in 1946, the ballet was staged in Kyiv by Lorka Massin, who continues a dynasty of Russian ballet masters living in Europe. The libretto seems a little complicated at first. John, an American tourist, comes to a small Greek town to take part in Dionysiacs, a holiday dedicated to god Dionysus. He falls in love with a young widow called Marina. But alas, he has a rival in the person of a local suitor Manolios, whose feelings Marina does not return. John’s ordeal does not end there. The locals strongly dislike him and reject him. But his luck turns when Zorba, a native of this town, gets back home after his travels. The two become friends and even start a business together. Zorba’s own plot develops as he falls in love with Madame Hortense, a former courtesan – a sad yet slightly comical character in the story. Eventually, the friends’ business fails. Vindictive Manolinos provokes a new wave of hostility against John and Marina, as a result of which Marina dies, trampled over by an angry mob. John escapes death from the hands of Manolinos after Zorba’s intervention. John grieves his love, and soon it’s Zorba’s time to grieve as his beloved dies of tuberculosis. Now, it all seems sad and tragic, but paradoxically, the ballet itself is not. In fact, it’s a very energetic and uplifting show, with a good mix of solo and mass performances that allow the dancers to shine. Maksym Motkov, who plays Zorba, is well picked for the role. Agile and temperamental, he truly makes his character central to the story. Marina, played by Olena Filipyeva, dances her emotions beautifully – from rage to hate, to love and then tenderness. She is the emotional backbone Æ22
20 Seven Days
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September 24, 2010
Sept. 25
Living more than 7,000 kilometers away from their homeland, Koreans in Ukraine form tight bonds to preserve their identity. During the Festival of Korean Culture in Kyiv, they will demonstrate their cultural essentials through
Shopaholics dream come true
Sept. 24
(Courtesy photo)
dance, dress and national cuisine. The festival will open with Korean-style beats and movements. The headliner will be the only Korean dance group in Kyiv, Toradi. Dressed in bright hanbok, traditional Korean clothing, Toradi will perform ethnic dances that date back to shamanistic rituals practiced 5,000 years ago. Another highlight of the festival will be the exhibition of hanboks of all styles and colors. Traditional dress has no pockets and is rather simple in design. Koreans used to wear them on a daily basis, but a couple of decades ago they switched to jeans and t-shirts. Korean cuisine, limited to only a couple of food joints in Kyiv, will get well-deserved publicity during the show. Get ready for a feast of fish, rice, noodles and meat smothered in spices. Sept. 25 from 3 p.m., Cinema House, 6 Saksaganskogo, metro Palats Sportu. Free admission.
For one night you’ll need to drastically change your shopping schedule because the heat of the fun is shifting past midnight. More than 200 shops will reduce their prices by 10 to 50 percent for the new autumn-winter collection at the mall in Obolon. Some 150 Ukrainian celebrities are expected to attend the event and entertain you in between the dressing rooms. We are not sure they will all show up but it’s a good chance to weed out Ukrainian designers off the crowd to get their advice on your style. The teams of celebs will compete with visitors in curling - a game on ice, and combine efforts to produce stylish clothes at the fashion laboratory. Rapper Potap and Nastya Kamenskikh will play at the concert. Glam presenter Katya Osadchaya known for her flamboyant hats, Playboy’s Ukrainian star Dasha Astafyeva, and actress Olha Sumska will supply some star dust to the gathering. Sept. 24 at 11 p.m., shopping mall Dream Town, 1B Obolonskiy prospekt. Free admission.
Sept. 25
Opera in Bulgakov’s house Opera performed in a museum is not something you get every day. But in a museum in memory of prominent Russian writer Mikhail Bulgakov, anything’s possible. The author of “Master and Margarita,” the world-famous mystic novel, loved music and drew inspiration from it. Opera “Love letters” by Ukrainian composer Vitaliy Gubarenko is based on a novel called “Tenderness.” Written by French writer Henri Barbusse, it tells a story of a man who mourns the death of his beloved. Before dying, however, she sent him four love letters, which he receives one by one. The plot sounds much like the 2007 American drama “P.S. I love you,” also based on a novel but a different one. So if the concoction of love, death and Bulgakov appeal to you, check out the museum, which has staged operas since 2005. Sept. 25, 7 p.m., 13 Andriyivskiy uzviz, tel. 425-3188.www.bulgakov.org.ua (in Ukrainian) Tickets: Hr 100 http://bigpicture.ru/wp-content/
(Courtesy photo)
Korean culture festival
Best music picks Russian singer Valeriy Syutkin became famous as a lead singer of band “Bravo” back in the ‘90s. Moscow dandies, Bravo worked in the style close to ‘50s American pop. In five years, Syutkin left the band and started his own project, but his best hits “Road to the sky” and “Moscow beat” were recorded with Bravo. “Syutkin Band” will give a charity concert to help select orphanages on Sept 26. Arena Concert Plaza at 7:30 p.m., 2A Baseyna. Tickets: Hr 150.
If Uma2rman sounds like actress Uma Thurman to you, you’ve guessed it right. Russian pop musicians, brothers Kristovski, borrowed her name because she was their favorite movie star. American Thurman apparently didn’t fuss about copyrights, and let the boys play the guitars and sing their often simple and funny lyrics for some seven years already. Sept. 30 at 8 p.m., Arena Concert Plaza, 2A Baseyna. Tickets: Hr 200.
Caravan Road is a festival of ethnic live music, unexpected improvisation and unusual composition. It’s not just an amateur gathering of wannabe musicians as most participants have repeatedly played at international jazz and folk festivals. Oct. 2 at 7 p.m., Dom Aktera, 7 Yaroslaviv Val, metro Zoloti Vorota, tel. 235-8247. www.actorhall.com.ua. Tickets: Hr 50-70.
Qiev Dance is an annual dance music festival, taking place for the seventh time. Highlights include Fatboy Slim, the famous English DJ and pioneer of electronic dance, German Dash Berlin and Cosmic Gate from Denmark. Oct.2. at 9 p.m., International Exhibition Center, 15 Brovarsky Prospekt, tel. 502-3464. http://qievdance.ua (in Russian). Tickets: Hr 200-400.
Joe Cocker is a legendary English singer, known for his bluesy soul voice. During his career, which spans over four decades, he has released 21 studio and four live albums. Cocker sang at Nelson Mandela’s birthday, the fall of the Berlin Wall concert and George H.W. Bush’s inauguration. He will let you leave your hat on at 7 p.m. on Oct.3 at Palace Ukraina, 103 Velyka Vasylkivska (Chervonoarmiyska). Tickets: Hr 100-5000.
Sept. 24
Chinese circus in town The Chinese take their circus very seriously -- it’s not just for the children. One of the oldest performing arts, Chinese acrobatics dates back to the time before Christ. This profession is actually respected in society and pays well. Children who aspire to join the circus, start practising at the age of three. They are allowed to go on stage only after a decade or so of honing the skill. The competition is very tough and only the best are allowed to master the arena. Prepare for a two-hour long show in Kyiv. An upside-down pyramid built by 18 people on one bike will be perhaps the most outstanding trick in this bright feast of gymnastic feats and a show of wild animals. Sept. 24 at 7p.m. and Sept. 25 at 1 p.m. and 5 p.m., Concert Hall Kobzov, 7A Dehtyarivska, tel. 455-8585. http://www.circus-kobzov.com.ua (in Russian). Tickets: Hr 39-119.
Compiled by Nataliya Horban
www.kyivpost.com
Lifestyle 21
September 24, 2010
Movies
Live Music conquers it all? The film won an award at the Moscow International Film Festival.
A scene from horror flick "Chatroom" (img52. imageshack.us)
CHATROOM Language: English Drama/Thriller/Great Britain (2010) Directed by Hideo Nakata Starring Aaron Johnson, Imogen Poots, Matthew Beard, Hannah Murray Teenage friends Eve, Jim, Emily and Moe befriend William – a mysterious guy they met in a chat room on the Internet. Soon they become completely fascinated with his character. But William is playing a game of his own. Helping Jim to get off the antidepressants, he’s really on a mission to bring him down. The Internet in this movie reminds a cheap motel, where every site is like a room full of vice. “Chatroom” is filmed in English by Hideo Nakata, the world-famous Japanese master of horror films and the author of creepy “Ring,” which is considered one of the best in its genre. THE NIGHT OF ‘ADEATERS 2010’ This time advertising won’t annoy in a way it usually does on television. Prepare for five hours of the best commercials from 54 countries - 360 in total, on a big screen. This all-night long, annual event is one of the most anticipated by advertising gurus and people who appreciate quirky, intriguing and fun videos. Ads will be broadcast in their original language, so don’t worry about the dubbings. Organizers prepared small surprise gifts and the traditional DJ-set from Tomas Lecuyer for guests to remember the night. The show celebrates its 30th anniversary this year. French ads master, Jean Marie Boursicot runs the show every year in more than 40 countries. Ukraine joined the list 10 years ago. The concept is pretty easy: ad-gurus send Boursicot some 25,000 ads annually and after
a thorough review, he chooses the best for his “AdEaters.” THE MALTESE FALCON Language: English Crime/Film-Noir/Mystery/USA (1941) Directed by John Huston Starring Humphrey Boggart, Mary Astor Great time to revisit some classics! This autumn the Cinema Club at Master Class will be dedicated to some good old noir movies. “The Maltese Falcon” is reputed to have started the genre. The film tells a story of a private detective from San Francisco chasing after three criminals. The culprits steal a precious statuette of a falcon. It seems like you know the end before the start but with this type of a film, you’ll be in for a surprise. Nominated for Oscar in three categories, it made Humphrey Boggart, who plays the investigator, quite famous in his time. OM SARA Language: Swedish Drama (2005) Directed by Othman Karim Starring Linda Zilliacus Sara is in her early 20s and lives in Malmo, in the south of Sweden. Her father is dead, and Sara has to put her mother into a hospital. Her boyfriend Kalle is a celebrated soccer player and likes the high life fame brings. Sara, however, wants to study and work. Despite clearly different life goals, they marry, only to split up later. The job is also in the way of her next big relationship. Failing to get a proper man in her life, Sara decides to have a baby, not necessarily being married. At this stage, she falls for a carpenter working on her old house. Is she getting desperate or love
THE VANISHING POINT (CE QUE MES YEUX ONT VU) Language: French Fantasy Drama/Mystery/France(2007) Directed by Laurent de Bartillat Starring Sylvie Testud, Jean-Pierre Marielle, James Thierree and others Coming out just a year after “The Da Vinci Code,” “The Vanishing Point” offered a European take on the mystery involving a famous artist and hidden messages in his paintings. Made by a French director with a French actor, “The Vanishing Point” is a lot more humane and subtle than the “Code,” though there are plenty of logical holes here as well. But if you stay away from analyzing the film much, you may still enjoy it. A history student, Lucy (Testud) is trying to trace the identity of a female, whose behind is pictured in a painting by French artist Antoine Watteau (1684-1721). At the same time she develops an awkward relationship with mute street mime Vincent (Thierree). Soon after, however, Vincent falls into a coma. But just before he does, he shows Lucie a picture of himself as a child in an institution for children with disabilities. Coincidentally (or not?) the photograph provides Lucie with another lead to her Watteau mystery. On the picture she sees a work by another French artist, Gilles-Marie Oppenord, which, she believes, holds the key to Watteau’s life and career. ZHOVTEN 26 Konstyantynivska, 205-5951, www. zhovten-kino.kiev.ua Chatroom Sept. 24,27-29 at 2:15 p.m., 5:50 p.m. and 7:35 p.m. Sept. 25 at 10:50 a.m., 1 p.m., 5:50 p.m, and 7:35 p.m. Sept. 26 at 1 p.m., 5:50 p.m, and 7:35 p.m. Om Sara Sept. 24-29 at 4 p.m. Sept. 25, 26 at 1:35 p.m. The Vanishing Point Sept. 24, 27-29 at 12:50 p.m., 4:35 p.m. Sept. 25 at 12:35 p.m., 2:45 p.m. Sept. 26 at 2:45 p.m. and 2:50 p.m. THE MASTER CLASS CINEMA CLUB 34 Ivana Mazepy, 594-10-63, www.masterklass.org/eng/ The Maltese Falcon Sept. 30 at 7 p.m. OSCAR CINEMA 1-B Obolonskyi pr-kt., Dream Town Mall, 520-5533, www.oskar.kiev.ua The Night of AdEaters Sept. 24 at 9 p.m.
The Groove Syndicate from Britain will play some jazz on Sept. 28 (Courtesy photo) ART CLUB 44 44B Khreshchatyk, 279-4137, www.club44. com.ua Concerts traditionally start at 8 – 10 p.m. Sept. 24 G Sound, Hr 50 Sept. 25 Kubikmaggi, Hr 50 Sept. 26 Jazz: Soiuz 44 Jam Session, free admission Sept. 27 Nataliya Lebedeva’s Trio (jazz), free admission Sept. 28 EuropeanJazz - The Groove Syndicate, Hr 50 Sept. 29 R.O.O.M, In Montibus, Hr 40 Sept. 30 Balkan party, Hr 20 DOCKER’S ABC 15Khreshchatyk, 278-1717, www.docker. com.ua Concerts traditionally start at 9:30-10 p.m. Sept. 24 Antitela, Chill Out, Hr 70 Sept. 25 Ukrainska, Tex-Mex Company, Hr 70 Sept. 26 Second Breath, free admission Sept. 27 Dendi, free admission Sept. 28 More Khuana, Hr 20 Sept. 29 The Magma, Hr 30 Sept. 30 Ruki v Bruki, Hr 30 DOCKER PUB 25 Bohatyrska (Heroyiv Dnipra metro), 5371340, www.docker.com.ua Concerts traditionally start at 9:30-10 p.m. Sept. 24 Mad Heads XL, Read Rocks Hr 70 Sept. 25 Ot Vinta, Mr. Och & His Root Boys, Hr 70 Sept. 26 Foxtrot Music Band, free admission
Sept. 27 Lemmons, free admission Sept. 28 Tres Deseos (latino party), free admission Sept. 29 Rockin’ Wolves, free admission Sept. 30 Vostochnyi Express, free admission BOCHKA PYVNA ON KHMELNYTSKOHO 4B-1 Khmelnytskoho (Teatralna metro), 390-6106, www.bochka.com.ua Concerts traditionally start at 9-10 p.m. Sept. 24 Trol Gnet El, True ColorsHr 90 Sept. 25 Rolliks, Offis, Dikie Ludi, Hr 40 Sept. 26 Martiansdoitbetter, Hr 15-30 Sept. 28 Briliantu, Hr 40 PORTER PUB 3 Sichnevoho Povstannya, 280-1996, www. porter.com.ua Concerts traditionally start at 9-10 p.m. Sept. 24 Brown Sugar Sept. 25 Dikie Ludi Sept. 26 Yukhim Dim Sept. 29 Ivan Bluz Sept. 30 Maks Tavricheskiy OTHER LIVE MUSIC CLUBS: JAZZ DO IT (76A Velyka Vasylkivska, 5997617, http://jazz-doit.com.ua/) DRAFT (1/2 Khoryva (Kontraktova Ploshcha metro), 463-7330) KHLIB CLUB (12 Frunze, www.myspace. com/xlibclub ) CHESHIRE CAT (9 Sklyarenko, 428-2717) O’BRIEN’S (17A Mykhaylivska, 279-1584) DAKOTA (14G Heroyiv Stalinhradu, 4687410) U KRUZHKI (12/37 Dekabrystiv, 562-6262)
Compiled by Nataliya Horban
22 Lifestyle
www.kyivpost.com
September 24, 2010
Karol embarks on concert tour Æ19 Pugacheva. Winning her special prize of $50,000, Karol recorded her first music video. Next year, she was already in Athens, Greece, representing Ukraine at the Eurovision song contest with “Show me your love.” She finished seventh among 24 participants, but it was enough to become a celebrity in the Ukrainian pop market, which still has a lot of room for growth. Karol was born in a small village in the Magadan region of Russia’s Far East, into a family of engineers. After seven winters with -50C temperatures, the family moved to Ivano-Frankivsk in western Ukraine to live with Karol’s grandmother. At school, she was singled out for her strong voice of three octaves, but said she was not popular among boys. “I have always been this ordinary chubby teenager with rosy cheeks and two pigtails tied in a big bow,” Karol remembered. “Boys have rarely expressed any gallantry towards their classmates. I was not the exception.” Karol said she was a quiet and homely child. But it all changed when she received her first money from singing and spent it on makeup. “My father wanted me to study English, computers and marry a good man. But instead, I went to a musical college in Kyiv,” she said. She lived in a dormitory and sometimes traveled to the United States with the Jewish ensemble Shakhar. She said she could still speak Hebrew and remembered many Jewish songs. “They used to play very important role in my life,” Karol recalled. Today, Karol wakes up at 7 a.m. and doesn’t know when exactly she may go to bed. Her morning routine starts with yoga practice and a “personal promise to never spend a day in vain.” She married her producer, Eugene Ogir in 2008. They are raising their two-year old son. Baby Benjamin is following Karol on the road since she went to promote her new album in 44 cities around Ukraine on Sept. 20. She worked on her fourth album with producers Brian Rawlings and Yoad Nevo at London Metrophonic Studios, known for previous work with Britney Spears, Cher, Enrique Iglesias, and Celine
Zorba the Greek ballet in the National Opera. (Courtesy)
Zorba the Greek, ballet in two acts, has its moments of grandeur Since 2005, Tina Karol has been the soloist of the Ensemble of Song and Dance of the Ukrainian Armed Forces (Courtesy)
Dion among others. She mainly sings in Russian because Ukrainian lyrics offered to her before “seemed to work best at drinking parties. And if a song was slow, it lacked character for me.” But in the new album, which is a mixture of pop, r’n’b, hip-hop and rap styles, she has three songs in Ukrainian. “It was the first time that I had Ukrainian lyrics which made me cry when singing,” she explained. Music critics admired Karol’s strong vocals and lyrics when she first broke the scene at 21. But many say the quality of her new works leaves much to be desired. Targeted at teenagers, they seem like playful chit-chat for an audience that cares little about its meaning, said Volodymyr Rozhok, chancellor of the Tchaikovsky National Music Academy. “Ukrainian youth are spiritually bankrupt. They cannot recognize true cultural values and, of course, they listen to and enjoy all these shameful, empty and absolutely dull songs,” said Rozhok about the modern pop-music market.
And yet it’s hard to ignore Karol’s mass appeal. With a voice as strong as Pink’s or Beyonce’s, she gets people dancing and humming her songs as soon as the volume goes up. Voted by Viva Ukraine magazine as the most beautiful woman two years in a row, she is among the most wanted guests at glam parties and political concerts. Her political affiliations are as varied as her music styles. She sang at presidential campaign rallies for former Prime Minister Yulia Tymoshenko, yet was spotted driving to President Viktor Yanukovych’s birthday party in July. Tickets to her shows range from Hr 100 - 1,000 and it costs $20,000 to get her to perform at corporate parties. Tina Karol’s Ukrainian tour starts Sept. 20. She will perform in Kyiv on Oct. 30 in Palats Ukrayina. More information can be found at http://tinakarol.ua/ and http://fan.tinakarol.ua. Kyiv Post staff writer Iryna Prymachyk can be reached at prymachyk@kyivpost. com.
Æ19 of the story, and her dancing is, too. The other central female character, Madame Hortense, played by Hanna Dorosh, is a touching and brittle personality. Her droopiness and sadness are danced beautifully and with much empathy. The show is set against an impressive background that seems a little too heavy at the beginning, with ruins of an ancient temple and a Christian church. It lacks somewhat in the whites and blues of real Greece, and its airiness. The background changes after the break, and the sea appears, setting the tragic events of the second part of the performance against a contrasting tranquil marine landscape. A live choir gives an additional depth to the show, adding to the grandeur of the ballet, and setting off the intimacy of some dances, like the National Opera House, 50 Volodymyrska, 279-1169. Sept. 30, tickets: Hr 20 - 200 www.opera.com.ua
Mikis Theodorakis
pas de deux of Zorba and John, the ultimate dance of grief, male friendship and support. The sirtaki dance in the end performed by the whole troupe is a good amalgamation of the traditional Greek dancing and ballet, which gives the whole show a flavorful kick. Kyiv Post Opinion editor Katya Gorchinskaya can be reached at gorchinskaya@kyivpost.com.
Tennis lessons for children and adults on the most up-to date tennis courts. Wide assortment of additional services, such as:
• sparing • individual tennis training and instruction • stringing • sales of tennis accessories • fitness • training gym • therapeutic massage • fresh-bar and cafe. • Wide parking and walking area. 89, Zhovtneva str., PP Borschagivka. Tel.: 044 409 2452, 044 409 2461 044 409 2435, 044 409 2443 (Ring road area close to Akademmistechko and Zhytomirskaya metro stations). www.tennisschool.com.ua
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Lifestyle 23
September 24, 2010
Best-selling Polish author finds big audience among Ukrainians Ă†â€˜Loneliness,’ ‘Arrhythmia’ help Janusz Wisniewski form bond with melancholy readers in East Europe
BY N ATA L I A A . F E D US C HAK FEDUSCHAK@KYIVPOST.COM
LVIV, Ukraine -- If there is any doubt that Polish writer Janusz Leon Wisniewski has struck a nerve with his Ukrainian readers, one only had to witness the scene at Lviv’s book festival on Sept. 18. Well in advance of his book signing, fans – mostly women, but also young and middle-aged men -pushed and shoved for a place in line. In Lviv to promote the Ukrainianlanguage versions of "Loneliness on the Net" and "Arrhythmia of Feeling," Wisniewski attributed part of his success in Eastern Europe to a highly developed understanding of melancholy. “These nations are very sad,� he said over coffee on a pleasant Lviv morning the day before the book signing. “They celebrate being sad.� At 56, Wisniewski is enjoying the kind of success most writers only dream about. Since his first novel, “Loneliness on the Net,� was published in 2001 in Poland, his books have regularly appeared on that country’s best-seller list. Selling more than 300,000 copies in Poland, “Loneliness� is an eroticallycharged contemporary love story of two people engaging in an online romance that becomes real. It has been made into a film in Poland and adopted to the stage in Russia. “Arrhythmia of Feeling� broke new ground by transforming an extended interview into a book. His latest work “Bikini� was sold to 11 countries in one year, and may be the effort that brings him international success. Not bad for someone who never dreamed of becoming a writer and still considers the craft a hobby. Despite his literary accomplishments, Wisniewski, who has a doctorate in chemistry, has kept his full-time job as a designer and writer of software for a chemical information institute in Frankfurt, Germany. He takes vacation time to do book tours and festivals. “I love my job,� said Wisniewski simply when asked why he doesn’t quit working and write full time. But he
Best-selling Polish writer Janusz Leon Wisniewski gives an autograph session during the Lviv Book Forum on Sept. 18. (Pavlo Palamarchuk)
admitted to engaging the idea of eventually leaving Frankfurt, his home for over two decades, and moving back to Poland to work and write from there. Wisniewski joked that soon his “Loneliness� will become “history� because he spends so much time in the novel explaining how the Internet works. Much of it is biographical, from what he felt and observed about love, Wisniewski said. The book was written while he was going through a separation and he never intended for it to be published. The words he wrote were for him, kept in an “electronic drawer.� He would, however, send fragments of his writing to a friend, who encouraged him to contact Polish publishers. Wisniewski finally relented and a bestselling author was born.
In some ways, “Arrhythmia� is a continuation of “Loneliness,� a book Wisniewski couldn’t write today. “I am a different man [now],� he explained. The result of nine hours of interviews with well known-Polish television personality Dorota Wellman and “six bottles of wine,� the book explores Wisniewski’s own life, including the end of his marriage, the relationship between men and women, and the journey of self realization and self identification. “Bikini,� with its blue cover and ocean view within the title, may fool the readers at first glance into thinking that it is another contemporary, sexual novel. They would, however, only be partially correct. Love and sex are certainly present, but the novel also deals with a side of history many people may
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not know about. Set at the end of World War II, the story follows Ann, an aspiring German photographer who hates fascists and loves an American. She documents the bombing of her hometown of Dresden, travels to New York and finally Bikini Atoll, the site of nuclear testing by the Americans. The idea came about in Zagreb, when Wisniewski and the director of the film adaptation of “Loneliness� decided to skip its showing and instead went to a cafe. The director said he had been approached by an American who wanted to make a low-budget film about Bikini Atoll. Would Wisniewski write the screen play? The writer knew with his full-time job, he couldn’t get a script written and so declined. But Bikini Atoll intrigued
him. He spent two years researching the book. He said that he wanted to look at “good Germans,� those people who opposed the Nazis, but were caught up in the war. It seems like a remarkable undertaking for someone whose father spent three years in a German concentration camp as a Polish prisoner. Born in Torun, Wisniewski comes from a part of Poland that for some 150 years was under German rule, and where the two ethic groups mingled. “I decided to show this [photographer’s] family in Dresden. What happened [there] in three nights ... is one of the biggest crimes during the war.� In those three nights in February 1945, more people were killed during Allied bombings than in Hiroshima and Nagasaki combined. “My mother never taught me to love Germans, and my father never taught me to hate them,� he added. Back at the book fair, a murmur passed like wildfire through the crowd, which quickly parted for the author to come through. For the next four hours, Wisniewski stood under bright lights shaking hands, chatting amiably, and posing for photos until the last fan walked away with a signed book. “I told him: ‘Take off your jacket,’� said Maria Solomina from MachaonUkraine Publishers who accompanied Wisniewski in Lviv. “He refused. He said it was disrespectful to his readers.� Kyiv Post staff writer Natalia A. Feduschak can be reached at feduschak@ kyivpost.com.
24 Paparazzi
www.kyivpost.com
September 24, 2010
A sneaky peak at designer Olga Gromova’s new collection
Designer Olga Gromova will present her new collection during Ukrainian Fashion Week, starting on Oct. 14
Who says you need a catwalk? Models show off new collection in designer‘s backyard.
After presenting her collection, Olga Gromova drove out in her car to greet guests.
The designer has a posh residence in a swanky Kyiv suburb.
Artist Illya Chichkan seemed overwhelmed with emotions
Æ
Ukrainian designer Olga Gromova decided not to wait until the Ukrainian Fashion Week in October to present her Spring/Summer 2011 collection of clothes. She gave a sneak preview of her work at her posh suburban residence south of Kyiv on Sept. 16. She spared no expense in organizing the party: from moveable billboards that sent the guests in the right direction, to lighting installations all over the facade of her mansion, to the red carpet leading to the entrance. There was no catwalk, though. The models strolled along special walkways cut through the lawns. Balanced between street fashion and the more streamlined city style, Gromova’s collection reflects the current fashion tendencies in the world fashion. As The New York Times recently put it, the current collections need architects, not decorators, of the fashion industry. (Courtesy)
Producer Yuriy Falesa
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 The band’s singer Diana Ovsyannikova
Lush Life band ruled the party
asasasa
Jazz nights start in Luciano restaurant
A series of jazz nights that will continue through autumn kicked off in Italian Luciano restaurant located at 33-V Dehtyarivska Street in Kyiv on Sept. 16. The events are conducted in collaboration with Jazz in Kiev production center, organizer of jazz festivals with the same name. The first event at Luciano featured Lush Life, a band famous for its tunes in Gypsy Swing style. Luciano plans to host six jazz evenings in total, but the schedule is yet to be finalized. The next evening will be set some time in October. More information on www.jazzinkiev.com. (Courtesy)
www.kyivpost.com
Lifestyle 25
September 24, 2010
Know Your Heroes
Monument of actor Leonid Bykov triggers memories of war heroics ÆNation has many statues and other memorials honoring wartime triumphs, but many lack warmth. The Bykov monument to wartime pilots is cast from Ukrainian-born actor Leonid Bykov, star of feel-good flicks about camaraderie and heroism
Editor’s Note: Have you ever walked by a park statue or an engraving of a person on a building’s facade and wondered: Who is the person being depicted and what made him or her worthy of immortality? We have too. To answer these vexing questions, the Kyiv Post started the “Know Your Heroes� feature. BY E L E N A Z AG R E B IN A ZAGREBINA@KYIVPOST.COM
Ukraine has many war monuments: Tanks, statues of the Motherland, busts of unknown and missing soldiers. Most war relics are gloomy reminders of bloodshed and sacrifice. But there are some exceptions. Actor Leonid Bykov (1928-1979), even cast in stone, warms you up immediately with his familiar half-smile. Sitting on top of the Pechersk hills overlooking city rooftops, he’s squeezing a pilot’s helmet in his hands in honor of World War II military pilots. People born in the Soviet Union would immediately recognize the character of aviator Tytarenko in this monument, from the epic film “Only the seasoned join the fight.� (V boi idut odni stariki). The Ukrainian-born Bykov played in
dozens of Soviet movies, but the pilot’s role is arguably his greatest. The plot tells the story of soldiers’ daily lives in the air and on the ground, catching them between battles. Both the film’s director and lead actor, Bykov created a feel-good movie about camaraderie, humor, heroism and love at the backdrop of Ukraine’s liberation in 1942 by Soviet troops. The film was shot at Dovzhenko Studio in Kyiv in 1973. Bykov himself always wanted to fly. Trying to enter the pilots' school twice, he failed the first time because he was too young and too short. During the second attempt, authorities decided to shut down his school because the war ended. And so the actor never got to
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Monument to Leonid Bykov Park Slavy
fly professionally, but at least he experienced it in the movie. “At first I wanted to depict Bykov standing up confidently, directing the air squadron,� said sculptor Volodymyr Shchur. “But then somebody showed me a photograph, where he is leaning against the plane’s cabin, and I felt that it was the only right way.� And so the pilot was cast resting after the flight with a grasshopper next to him. The little insect on a maple leaf epitomizes actor Serhiy Ivanov, who played a novice soldier in the film and went by the nickname of Grasshopper. Every time the battle unfolds, Ivanov would strangely disappear and then return with a good excuse when all the dust settles down. He overcomes fear only after shooting down his first Nazi plane. Perhaps every Soviet-born citizen has seen this movie at least once. Veterans, however, watch it a thousand times over and often come to this monument to lay flowers and meet friends. Bykov sits on an airplane wing right next to the park of Eternal Glory. Sculptor Shchur said they chose this specific location because the field behind the monument is reminiscent of an airfield. Kyiv Post staff writer Elena Zagrebina can be reached at zagrebina@kyivpost. com
Leonid Bykov monument in Kyiv. (Elena Zagrebina)
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26 Lifestyle
September 24, 2010
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Lviv artist invites Kyivans to extend ‘Borders of Space’ BY J A ME S M A R S ON MARSON@KYIVPOST.COM
The modern world encourages isolation. The communication revolution of Facebook and iPhones has led to people making friends through computer screens and walking around with headphones stuffed in their ears. Comfortable (or stuck) in our own familiar world, we tend to build artificial barriers that cut short our interaction with the space – people, things, ourselves – around us. Lyiv sculptor Nazar Bilyk’s “Borders of Space” exhibition at Bottega Gallery in Kyiv challenges the visitor to think about his own borders and the struggle to overcome them, open up and communicate with the world around him. “A person can’t be separate from what surrounds him and continually interacts with his environment,” Bilyk, 30, said at the opening on Sept. 17. “The exhibition provokes questions rather than providing answers. A person stands and looks [at the works] and asks who he is, where he is, and how he feels in the space.” Bilyk uses a variety of materials – glass, plastic, bronze – to create visions of space and ask what our relationship to it is. Do we create our surroundings, our own barriers, or are they imposed? How do we react to them? Sometimes the space is oppressive – “There” is an armless figure whose torso and head are encased in a plastic box – at others it opens up possibilities, such as “Direction,” where a figure strides upward into open space. Emotional and psychological borders and interactions become physical ones in the sculptures. The exhibition begins with three large figures. The first is the cast used to make the other two; the second has his head thrown back, looking up to the sky; the third is almost identical, but with a glass “raindrop” on his face. The glass seems not to weigh heavily, but to flow softly, almost caressing the figure’s face. Bilyk described the three works as representing a “process” by which a person moves from being locked inside the cast, to opening up to the world. “The raindrop represents his dialogue with himself and others and the whole world; it’s the answer he receives,” he said. The idea that unites the sculptures on display sprang from these three figures, although Bilyk said he didn’t
Guests at the opening of the sculpture exhibition at Bottega gallery on Sept. 16. (Serhiy Zavalnyuk)
have a clear concept in his mind when creating the works that make up the display. “The worst thing is if an artist starts with some conception and prepares everything toward this. It’s like having a force over you, the need to fulfill a plan,” he said. This perhaps explains the variety of the work on display. “Development” shows a face becoming increasingly clear in six glass shapes on a wall. In “Transformation,” a kneeling bronze figure is partially encased in gypsum, seemingly stuck and unable to move, or is it being hatched into a new, freer life? The exhibition holds together well, continually probing the question of our relationship with our environment through different shapes, angles, materials. “Rain 2” is a figure encased in polymer, isolated because it is surrounded, but at the same time visible from
several sides from one angle through reflections. “Something more opens up in a person if you create the surroundings for him. Surroundings can both cover and open a person. In this case, it does both,” Bilyk said. But what about the sculptor himself? Which of the three figures that gave the exhibition its name is he closest to? Tough question, he responds: “I try to ask myself questions. These questions translate into sculpture and the answers aren’t yet clear to me, but the thinking process is.” Kyiv Post Business editor James Marson can be reached at marson@ kyivpost.com “Borders of Space” runs to Sept. 30. Bottega Gallery. 22 Mykhailovskaya. Metro Maidan Nezelezhnosti. www. bottega-gallery.com
Artist Nazar Bilyk
‘Direction’ figure seems ready to experience the open space.
ÆEmotional and psychological borders in real life are represented with physical ones in Nazar Bilyk’s sculptures. The artist describes his works as ‘a process’ of opening up to the world The cast with the raindrop is one of the most popular exhibits.
www.kyivpost.com
Paparazzi 27
September 24, 2010
Sad French comic in Kyiv
Actor Pierre Richard
Æ
French actor Pierre Richard arrived in Kyiv on Sept. 14 to present his new play “Pierre Richard: Poste Restante.“ The 76-year-old actor has a strong bond with Eastern Europeans after his roles of hapless characters in French comedies in 1980s. The image of “The Tall Blonde Man with One Black Shoe” has stuck with Richard for years. On theater stage, however, Richard wore sneakers of the same color and told life stories that were inspirational rather than funny. The actor only had a blue-and-white poster to imitate the sky or the sea and stacks of letters for props. He would read out a letter, often from a slightly kookoo fan, and tell a story from his own life in response to a reader’s request to join a political party or help him or her to become famous. Richard's son, Ollivier, was playing the saxophone providing a voice of his own to his father’s act. (PHL, Ukrinform)
French Ambassador Jacques Faure (L) and actor Pierre Richard in Odesa on Sept. 18.
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
‘Billionaire Party’ – minus the billioanires
Liza Yushchenko, daughter-in-law of Viktor Yushchenko, is the wife of the ex-president’s son Andriy.
DJ Andrea T. Mendoza from Italy spins some disco-house tunes Kyiv's posh lounge bar and restaurant OK bar hosted the “Billionaire Party“ for Ukraine‘s parade of rich and powerful on Sept. 17. DJ Andrea Mendoza was flown in from the Italian Billionaire club, one of the hottest nightlife venues in Costa Smerelda, known for its all-night dance debauchery. Ukraine‘s OK venue is not exactly your Italian villa with stunning sea scapes but it‘s no less of a magnet for the capital's high-flying businessmen and fashionistas. Go-go dancers, a champagne waterfall and a fashion show drew many celebrities. Billionaires, however, failed to show up, but a couple of millionaires found a slot in their busy schedules. (Serhiy Zavalniuk)
Moscow’s scnadalous TV personality and socialite Kseniya Sobchak (center) popped in to say hello
Singer Kulbaba’s name means “dandelion” in Ukrainian, or “cool chick” if you apply some imagination to translating the worlds “kul” and “baba.”
28
www.kyivpost.com
September 24, 2010
Epic disaster Flood refugees threaten Pakistan’s political stability ISLAMABAD, (Reuters) - Millions of people forced to flee their homes by Pakistan’s worst ever floods may emerge as the most explosive issue for a feeble government in the wake of a disaster that will strain the economy for years to come. Pakistan was already under growing pressure to deal with over one million people displaced by fighting between the army and homegrown Taliban militants in the northwest. Now it must tackle a wider crisis -- 10 million people displaced by the floods -- that could create political instability in a frontline state in the U.S. war on militancy. “If these people are not somehow accommodated and their issues are not addressed in terms of basic shelter, basic food, medical care and rehabilitation and in terms of livelihood, then we are looking at potentially large social unrest,� said Kamran Bokhari, South Asia director at STRATFOR global intelligence. “Dislocation by itself can bring down states and governments, in theory.� While floodwaters have largely receded in northwest and central
Pakistan, thousands are still being evacuated in the south, officials say. “There are people who have been displaced only six days ago,� LouisGeorges Arsenault, director of UNICEF’s Office of Emergency Programmes, told Reuters after visiting camps in southern Sindh province. The cash-strapped government will be hard pressed to generate funds, work out complicated logistics and, most importantly, prove it can take charge after the military did most of the heavy lifting during flood relief and rescue operations. Leaving displacement issues to the powerful military as well could further undermine the state’s credibility. Analysts say that while a army-led coup is highly unlikely, the military may decide to take measured action if the government fails to help the displaced, especially since the Taliban could recruit flood victims who give up on the state. “In a situation of crisis when the civilian government loses legitimacy, it may be easy for the military to either manipulate the government from the sidelines, or indirectly bring in its own
men to replace the government,� said political analyst Hasan Askari Rizvi. Speculation is swirling about the fate of the government. What is clear, said Pakistani analyst Ahmed Rashid, is the army “is fed up with the government�. Critics say the government and the army have been pressuring people displaced by fighting to return home, despite security fears and lack of resources to rebuild. Former Taliban stronghold Swat Valley, hit hard by floods, highlights the multiple layers of the displacement problem. Take farmer Niamat Ali Khan. The Taliban killed his brother, two uncles and kidnapped and tortured him, he said, so he fled his home and spent two years at a camp for refugees. After receiving assurances from the military, Khan said, he returned home. Then the floods swept away his home and land. “The government has not helped us so far despite promises,� he said. The World Bank and the United States have urged Pakistan to take steps to reassure donors that it is capa-
Pakistani flood refugees in Sujawal, a Sindh Province in southern Pakistan, on Sept. 22. Monsoon rains triggered massive floods six weeks ago that spread across the country and are still continuing in parts of the south. Some eight million people have been made homeless in what Pakistani and United Nations officials have said is one of the largest humanitarian disasters in living memory. (AP)
ble of using their flood aid responsibly and transparently. Failure to do so could mean delays in billions of dollars needed for reconstruction. The International Crisis Group think tank said the floods have turned displacement into a “national disaster of mammoth proportions� and urged the
government to handle it. “Given the scale of the needs, there may be a temptation among donors to circumvent civilian structures and work directly with the military to deliver aid, but this would be a dangerous choice,� said Samina Ahmed, its South Asia Project Director.
PUBLIC SERVICE ADVERTISEMENT
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Pakistan has been struck by the gravest tragedy in its history. Recent floods caused by the heaviest monsoon have left behind a huge trail of destruction and devastation. This natural disaster has been recognized as one of the worst in recent history. Estimates of international agencies reveal that as many as 20 million people have been affected by the floods. 8 million remain reliant on the aid handouts and are at the risk of life-threatening diseases. 6.5 million acres of crops have been wasted away, 7,200,000 households are damaged. 7,000 schools, 4,000 health centers and 1,000 bridges have been destroyed. The Magnitude and scale of the calamity has simply been exceptional. In quantified terms it has far surpassed the extent of damage caused by Tsunami or any other major earthquake anywhere in the world. Rehabilitation of the millions of people and reconstruction of communication infrastructure remains the most daunting challenge both in the long and short term and is beyond the capacity of any government or nation. It naturally involves massive funding. It is in this backdrop that we urge the international community to come forward and generously donate for the victims of the flood. Immediate utilization of the donations would be for provision of food supplies, safe drinking water, medicines, temporary shelters, emergency equipment etc. On the instructions of the government of Pakistan, the Embassy of Pakistan in Kyiv has opened an account for the receipt of donations. We are sure that you will make generous contributions to alleviate the suffering of the flood victims in Pakistan.
If you would like to send financial assistance, please contact Ms. Saqlain Syedah Counsellor. by phone: or by e-mail: QBSFQLZJW!HNBJM DPN
Or you may transfer money directly: 64 %PMMBS "DDPVOU /P -$ )SW "DDPVOU /P 6LSFYJN #BOL ,ZJW 6LSBJOF 4XJGU &9#46"69
The Kyiv Post will recognize each person and company who makes a donation. Please send us transfer confirmation by fax (044) 234-3062 or by e-mail lysa@kyivpost.com (Iuliia Lysa)
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Employment 29
September 24, 2010
POSITION ANNOUNCEMENT Chemonics International Inc. seeks a highly-qualified Ukrainian professional for the following position on the USAID Rule of Law (UROL) Project:
Financial Manager Duties and Responsibilities: s 2ECORD CLASSIFY AND SUMMARIZE FINANCIAL
transactions in accordance with International Accounting Standards s -ANAGE AND MONITOR MONTHLY PAYROLL PAYABLES AND RECEIVABLES AND DAILY balance of all bank activity; and supervise the overall work of the Bookkeeper s 0REPARE MONTHLY FINANCIAL REPORTS s 0ARTICIPATE IN THE DEVELOPMENT PROCESS OF CONTRACTS SUBCONTRACTS AND GRANT AGREEMENTS 2EVIEW ALL FINANCIAL reporting for grant and subcontract operations. s !PPLY A WORKING KNOWLEDGE OF applicable Ukrainian and U.S. laws and regulations Job Qualifications: s $EGREE IN ACCOUNTING FINANCE BUSINESS ECONOMICS OR EQUIVALENT s !T LEAST FIVE YEARS EXPERIENCE IN accounting and project financial MANAGEMENT s !BILITY TO COMMUNICATE CLEARLY AND effectively in English and Ukrainian required. s +NOWLEDGE OF AND EXPERIENCE WITH International Accounting Standards preferred. s 0REVIOUS 53!)$ OR OTHER INTERNATIONAL DONOR EXPERIENCE PREFERRED Please submit resume and cover letter to office@ukrainerol.org.ua by October 01, v 2010, with the position in the subject line. No telephone inquiries, please. Finalists will be contacted.
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Qualifications: fluency in Ukrainian, Russian & English; 3-5 years project management and/or organizational development experience; excellent communication & teamwork skills; knowledge about current situation in media and NGO sectors; good report writing skills; experience in administering USAID awards and journalism experience a plus. Interested candidates should send a CV and a cover letter to Sue Folger (TVFGPMHFS!JOUFSOFXT PSH) & Oksana Maydan (PNBZEBO!JOUFSOFXT PSH) by COB Oct. 1st. No phone calls please.
&INANCIAL -ARKETS !NALYST 2ECENT GRADUATES LAST YEAR STUDENTS ARE INVITED TO APPLY FOR A JUNIOR ANALYST POSITION IN A +IEV BASED HEDGE FUND 2EQUIREMENTS o /UTSTANDING NUMERICAL AND ANALYTI CAL SKILLS o 3TRONG UNDERSTANDING OF ECONOMY AND FINANCE o &LUENT %NGLISH o 7ILLINGNESS TO WORK HARD AND LEARN FAST 1UALIFYING CANDIDATES SHOULD SUBMIT THEIR #6 TO VACANCY SEP GMAIL COM
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ICRIN NATIONAL PROJECT COORDINATOR (SC, INTERNATIONAL CHERNOBYL RESEARCH AND INFORMATION NETWORK)
Ukraine
who will lead formulation, management and evaluation of project activities, provide expertise and services for UNDP country office and national counterparts. For detailed job description and application for this and other vacancies please visit http://undp.org.ua/jobs.
DEADLINE FOR APPLICATIONS IS 01/10/2010
All interested candidates should complete the UN PERSONAL HISTORY FORM* (P-11) available on http://undp.org.ua/jobs and attach it to the on-line application. UNDP Office in Ukraine 1, Klovskiy uzviz, Kiev 01021
November 6, 2010 The Ukrainian Chamber of Commerce and Industry (33 Velyka Zhytomyrska Street)
Employment Fair 2010 Inspired professional – a key to your business success! If you want to be included into the Employment Fair 2010, please contact advertising department at advertising@kyivpost.com or by phone 044 234-6503 For more information please visit: www.kyivpost.com/projects/employment Technical partner:
THE BRITISH INTERNATIONAL SCHOOL, KYIV
VACANCY ANNOUNCEMENT United Nations Development Programme (UNDP) invites applications from highly qualified, energetic, proactive and experienced professionals for the posts of
The British International School requires a part-time
TEACHER OF ENGLISH for Year 9
Please contact the school directly, sending a letter of application and CV. secondary@britishschool.kiev.ua
List of participants by September 24
KPMG BC Toms UkrSibbank Imperial Tobacco Ukraine FORTIS Bank of Cyprus InterContinental Kyiv PricewaterhouseCoopers Cargill Alumniportal Deutschland Richmond Recruitment Agency EDELWEISS Management Consulting Phoenix Capital Google
30 Employment
www.kyivpost.com
September 24, 2010
International Audit firm Is recruiting
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SENIOR AUDITOR
TAX SPECIALIST 4HE MISSION OF THE VACANCY IS TO work on various types of assignMENTS SUCH AS TAX CONSULTA TIONS DUE DILIGENCES TAX REVIEWS AND AUDIT 4HE SCOPE OF MATTERS INCLUDES 'ENERAL #ORPORATE TAX #04 6!4 ETC EXPATRIATE TAXES AGRICULTURAL SYSTEM AND TRANSNA TIONAL OPTIMIZATIONS
REQUIREMENTS: %XPERIENCE IN CORPORATE ASSIGNMENTS AND )&23 MATTERS AT LEAST YEAR EXPERIENCE IN A REPUTABLE AUDIT FIRM WILLINGNESS AND ABILITY TO TRAVEL TO CLIENT LOCATIONS COMMUNICATION SKILLS (written and oral) required to provide leadership and MENTORING TO STAFF SENIORS AND MANAGERS MOTIVATED TO MEET CLIENT DEADLINES AND PROVIDE DISTINGUISHED CLIENT SERVICE INTERPERSONAL SKILLS STRONG PRESENTATION SKILLS AND MOTIVATED BY CHALLENGING ASSIGNMENTS ABILITY TO WORK IN A TEAM ENVIRONMENT ORGANISATIONAL AND planning capabilities; ability to work to deadlines and DELIVER UNDER PRESSURE COMPUTER LITERACY SKILLS GOOD knowledge in English. Another foreign language would BE A &RENCH OR 'ERMAN REQUIREMENTS: MIN YEAR EXPERIENCE INCLUDING YEARS IN A REPUTABLE AUDIT OR LAW FIRM GOOD KNOWLEDGE IN FINANCE AND ACCOUNTING PRIOR EXPERIENCE IN AUDIT WOULD BE A PLUS KNOWLEDGE OF COMMERCIAL LEGISLATION COMMUNICATION SKILLS WRITTEN AND ORAL REQUIRED TO PROVIDE LEADERSHIP AND MENTORING TO STAFF MOTIVATED TO MEET CLIENT DEADLINES AND PROVIDE DISTINGUISHED CLIENT SERVICE INTERPERSONAL SKILLS STRONG PRESENTATION SKILLS AND MOTIVATED BY CHALLENGING ASSIGNMENTS AUTONOMY AND INITIATIVE SKILLS ORGANISATIONAL AND planning capabilities; ability to work to deadlines and DELIVER UNDER PRESSURE COMPUTER LITERACY SKILLS FLUENT in English; another foreign language would be a plus &RENCH OR 'ERMAN
To apply for this job, please contact Irada Akhmedova at
irada.akhmedova@aval.ua, + 38 044 495-91-65
Please send your CV in English to hr@mazars.ua &OR MORE INFORMATION ABOUT THE FIRM PLEASE GO ON www.mazars.ua Project coordinator/key account manager
Key responsibilities:
• Assist in the development, implementation and monitoring of programs. • Organize events, including meetings, seminars, conferences and workshops. • Communicate and coordinate events and activities with partner organizations. • Prepare monthly reports and media analysis. • Occasionally provide oral interpretation and written translation. • Maintain files and records and perform administrative duties.
RESUME
Please submit your resume or CV along with a cover letter to intlaffairsposition@gmail.com For more information about the Solidarity Center, please visit www.solidaritycenter.org However, DO NOT submit your resume to the Solidarity Center website.
Please send your CV & Cover letter to fax: +38 044 2463757 or e-mail: igor@koremb.kiev.ua Attn: Igor Lomiychuk
Accountant part-time
PA/BUSINESS MANAGEMENT/MARKETING MINI
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Market Entry Services
RESUME
MINI
RESUME
General requirements: • Fluent English (simultaneous interpreting sometimes required) • Relevant working experience: - experienced in or ready for preparing and reporting workable business plan on Energy Efficiency sector through and analyzing the trend of markets, contacting relevant experts. • Excellent organization & administrative skills • Experience with general legal issues - desirable • Reliable, responsible person • Communicative, friendly, loyal
RESUME
ASSISTANT / ADVISOR TO THE AMBASSADOR ON ENERGY SECTOR
RESUME
is seeking a candidate for the position of
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Embassy of the Republic of Korea in Ukraine
RESUME
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Requirements:
• Proficiency in English, Ukrainian and Russian. • Good communications and writing skills. • Interest in working with international organizations. • Ability to manage work independently of supervision. • Flexibility, good organizational skills, and ability to work under pressure. • Ability to travel. • University degree.
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The American Center for International Labor Solidarity (Solidarity Center) seeks to hire a Program Specialist in Kyiv. The Solidarity Center is a nonprofit organization that promoters internationally recognized labor rights and assists workers build democratic and independent trade unions.
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www.kyivpost.com
Education/Classifieds 31
September 24, 2010
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AMERICAN ENGLISH C O N V E R S AT I O N CLUB Offering everyone a unique opportunity to improve your knowledge and language skills with native American speakers and professionals in relevant areas. Legal and business topics prevail. Meetings at convenient times. Sterling Business School 7 Nesterovskiy Lane (off Artema) Please call Reno (067) 5030433 or Anatoly (093) 9005077 email: renodomenico@sbs-ua.com
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32 Photo Story
www.kyivpost.com
September 24, 2010
Out of frying pan, into fire The Molotov-Ribbentrop Pact marked two years of cooperation between the Soviet Union and Nazi Germany, from its signing on Aug. 23, 1939, to June 22, 1941, when the Nazi invasion turned the two powers into bitter and bloody war combatants. The 1939 non-aggression pact, named after Soviet Foreign Minister Vyacheslav Molotov and Nazi German Foreign Minister Joachim von Ribbentrop, led to the division of Eastern Europe into spheres of influence between the Nazis and Soviets. The Molotov-Ribbentrop Pact ceded Lviv and much of western Ukraine, then part of Poland, to the Soviets. The Nazis, who invaded Poland on Sept. 1, 1939, turned the city of Lviv over to Soviet troops on Sept. 17 of that year.
The unhappy anniversary was remembered 71 years later in Lviv’s Market Square, with a reenactment by local residents of the takeover by celebrating Soviet soldiers (1), a bitter reminder of Josef Stalin’s cooperation with the jubilant Nazis (2), who rode their motorcycles and roamed in local pubs as Red Army soldiers drank vodka and distributed propaganda. The actual historical meeting of Nazi and Soviet soldiers in Lviv is shown in photograph 3. Ribbentrop (back, left) stands next to Stalin (back, second from left) as Molotov signs the NaziSoviet pact (4). The dream of Ukrainian national independence would have to be deferred until Aug. 24, 1991. – Story by Nataliya Horban – Photos by Pavlo Palamarchuk
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