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ACTION UKRAINE REPORT - AUR
An International Newsletter, The Latest, Up-To-Date
In-Depth Ukrainian News, Analysis and Commentary
In-Depth Ukrainian News, Analysis and Commentary
Ukrainian History, Culture, Arts, Business, Religion, Economics,
Sports, Government, and Politics, in Ukraine and Around the World
INTERNATIONAL MONETARY FUND (IMF) URGES
STRONG CRISIS MANAGEMENT IN UKRAINE
ACTION UKRAINE REPORT - AUR - Number 928
Mr. Morgan Williams, Publisher and Editor, SigmaBleyzer Emerging
Markets Private Equity Investment Group, www.SigmaBleyzer.com
WASHINGTON, D.C., FRIDAY, FEBRUARY 13, 2009
INDEX OF ARTICLES ------
Clicking on the title of any article takes you directly to the article.
Return to Index by clicking on Return to Index at the end of each article
1. IMF URGES STRONG CRISIS MANAGEMENT IN UKRAINE
The Associated Press (AP), Washington, D.C., Thu, February 12, 2009
Ukrainian News Agency, Kyiv, Ukraine, Thu, February 12, 2009
By Alan Cullison, The Wall Street Journal, NY, NY, Mon, February 9, 2009
Ukrainian News Agency, Kyiv, Ukraine, Thu, February 12, 2009
Ukrinform, Kyiv, Ukraine, Thu, February 12, 2009
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
bne Ukraine Daily List, Berlin, Germany, Mon, February 9, 2009
Ukrainian News-on-line, Kyiv, Ukraine, Monday, January 9, 2009
BUSINESS COUNCIL (USUBC), MEMBER 102
UIA offers more direct flights from Ukraine to Europe than any other airline
U.S.-Ukraine Business Council (USUBC), Washington, D.C., Tuesday, February 3, 2009
UIA offers more direct flights from Ukraine to Europe than any other airline
U.S.-Ukraine Business Council (USUBC), Washington, D.C., Tuesday, February 3, 2009
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
By Natalya Zinets, Reuters, Kiev, Ukraine, Thu, Feb 12, 2009
12. UKRAINE'S OUTLOOK WORSENS, AS FINANCE MINISTER QUITS
Fitch cuts Ukraine's credit ratings, citing possible banking and currency crisis
By Polya Lesova, MarketWatch, New York, NY, Thu, Feb. 12, 2009
12. UKRAINE'S OUTLOOK WORSENS, AS FINANCE MINISTER QUITS
Fitch cuts Ukraine's credit ratings, citing possible banking and currency crisis
By Polya Lesova, MarketWatch, New York, NY, Thu, Feb. 12, 2009
By Timothy Ash, Head of CEEMEA research
Royal Bank of Scotland, London, UK, Thu, February 12, 2009
Royal Bank of Scotland, London, UK, Thu, February 12, 2009
Dow Jones Newswires, New York, NY, Thursday February 12, 2009
15. AUSTRIA CALLS ON EUROPEAN UNION TO SUPPORT UKRAINE
By Stefan Wagstyl in Kiev, Financial Times, London, UK, Thu, Feb 12 2009
By Stefan Wagstyl in Kiev, Financial Times, London, UK, Thu, Feb 12 2009
bne Ukraine Daily List, Berlin, Germany, Thu, February 12, 2009
17. DEFICIT OF UKRAINE'S FOREIGN TRADE IN COMMODITIES 2008 SOARS 63.7%
17. DEFICIT OF UKRAINE'S FOREIGN TRADE IN COMMODITIES 2008 SOARS 63.7%
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
BYuT Inform Newsletter, Kyiv, Ukraine, Wed, Feb 11, 2009
Analysis & Commentary: By Ivan Lozowy, The Ukraine Insider
Vol. 9, No. 1, Kyiv, Ukraine, Thursday, February 12, 2009
UkrAgroConsult, Kyiv, Ukraine, Thu, February 12, 2009
MARKETING YEAR TO 19.1 M TONNES
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
By Tom Lasseter, McClatchy Newspapers, Wash, D.C., February 12, 2009
Commentary & Analysis: by Anton Fedyashin
Assistant Professor of Russian History at American University.
The Washington Post, Washington, D.C., Wed, February 11, 2009
24. WHILE GLOBAL MARKETS CONTRACT, SIGMABLEYZER FINDS VALUE
IN KAZAKHSTAN AND ACQUIRES FIRST KAZAKH COMPANY - "ASEM-AI"
IN KAZAKHSTAN AND ACQUIRES FIRST KAZAKH COMPANY - "ASEM-AI"
SigmaBleyzer, Astana, Kazakhstan, Tuesday, September 23, 2008
25. UKRAINIAN CUSTOMS AUTHORITIES ISSUED NEW CLARIFICATION
REGARDING IMPORT DUTY EXEMPTION FOR FOREIGN INVESTMENTS
REGARDING IMPORT DUTY EXEMPTION FOR FOREIGN INVESTMENTS
DLA Piper Ukraine law firm, Kyiv, Ukraine, Wed, Feb 4, 2009
“Strategies for effective corporate leadership in unprecedented times”
Thursday, 19th February 2009, Premier Palace Hotel, Kyiv, Ukraine
Adam Smith Conferences, London, UK, February 2009
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1. IMF URGES STRONG CRISIS MANAGEMENT IN UKRAINE
The Associated Press (AP), Washington, D.C., Thu, February 12, 2009
WASHINGTON - Ukraine needs to exercise strong crisis management as it wrestles with a budget deficit, a spokesman for the International Monetary Fund said Thursday. David Hawley said discussions between the IMF and authorities in Kiev were continuing "on the need to find agreement on how to contain the general government deficit in 2009."
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1. IMF URGES STRONG CRISIS MANAGEMENT IN UKRAINE
The Associated Press (AP), Washington, D.C., Thu, February 12, 2009
WASHINGTON - Ukraine needs to exercise strong crisis management as it wrestles with a budget deficit, a spokesman for the International Monetary Fund said Thursday. David Hawley said discussions between the IMF and authorities in Kiev were continuing "on the need to find agreement on how to contain the general government deficit in 2009."
Other topics under discussion, he said, include monetary policy and restructuring of the banking system "so that confidence in the banking and financial system can be restored." He said he expected an IMF mission to return to Kiev for more talks, but he did not give a date.
Last week, the IMF postponed the second $1.9 billion tranche of a $16.4 billion emergency loan after Ukraine fell behind on stabilization measures needed to receive the aid.
Ukraine is among the countries hardest hit by the global financial crisis. The economy is plunging into a deep recession, the national currency has lost 40 percent of its value since late 2008 and the state gas company is struggling to service multibillion-dollar debts for Russian gas imports.
A failure of the banking system could severely damage European banks that have major stakes in Ukrainian financial institutions. Ukraine turned to Russia last week for a $5 billion loan and is seeking aid from the United States and other major industrialized nations.
"Strong commitment by the authorities to getting the country's economy back on track on the path to sustained growth is the key to success in these economic programs," Hawley said, "so strong crisis management is essential." He said obtaining financial help from other countries would temporarily alleviate financial difficulties.
"A high deficit could then be considered, which could help boost domestic demand and smooth the economic adjustment," Hawley said. The Kiev government's 2009 budget is expected to show a deficit of 3 percent of gross domestic product.
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2. IMF EXPECTING UKRAINE TO IMMEDIATELY AMEND STATE BUDGET
2. IMF EXPECTING UKRAINE TO IMMEDIATELY AMEND STATE BUDGET
Ukrainian News Agency, Kyiv, Ukraine, Thu, February 12, 2009
KYIV - The International Monetary Fund expects that Ukraine would immediately amend the state budget for 2009, head of the main service for socioeconomic development of the Presidential Secretariat Roman Zhukovskyi said a briefing. He said that the IMF mission has a lot of remarks to the fulfillment of the IMF loan requirements.
"The IMF is expecting relevant actions from Ukraine. The amendment of the state budget could become indicial," Zhukovskyi said. He also said that during the work of the IMF mission and after the consultations it held with the relevant Ukrainian agencies, the Fund estimated the gap in financing of the Ukrainian state budget of UAH 50 billion.
The mission has expressed its concern over the violation of the memo items between Ukraine and the Fund. In particular, the organization cannot obtain the drafts of important economic documents, like draft state budget before their endorsement.
Zhukovskyi said that the IMF demands to change the economic policy inside of the country. Zhukovskyi also predicted bad consequences if Ukraine fails to receive the second tranche of the IMF.
As Ukrainian News earlier reported, President Viktor Yuschenko is concerned over the gap in the mutual understanding between the Cabinet of Ministers and the mission of the International Monetary Fund. Prime Minister Yulia Tymoshenko is sure that the International Monetary Fund will provide Ukraine with the second tranche.
The IMF mission is ready to prolong the talks with Ukraine on allocation of the second stand by loan tranche. On November 5, 2008, the IMF decided to give Ukraine the stand-by loan worth about USD 16.4 billion to overcome the problems in the economy. The International Monetary Fund directed the first USD 4.5 billion tranche of the standby loan on November 10, 2008.
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3. UNCERTAINTY ON IMF LOAN SENDS UKRAINE TO MOSCOW
The International Monetary Fund is likely to suspend loan payments to Ukraine, a move that would further push the government toward Moscow for aid and exacerbate a feud between top leaders in Kiev.
Ukraine is failing to meet the terms of its loan deal with the IMF, and likely won't get the next installment this month, according to a person close to talks between the fund and the government in Kiev.
Faced with a cash shortage, Kiev is passing the hat around to global powers. Talks were held in Moscow last week over a $5 billion loan to help plug Ukraine's budget deficit.
Ukraine Prime Minister Yulia Tymoshenko said her government also sent letters to the U.S., European Union, China and Japan, and that "Russia is ready to help with the credit agreement's signing."
President Viktor Yushchenko criticized the talks with Moscow. "It's a dangerous policy and poses a threat to Ukraine's national interests," he said. The U.S. State Department said it was looking into reports of Ukraine's request for aid.
Ukraine has been hit by falling prices of metals and fertilizers, its main exports. Infighting between Mr. Yushchenko and Ms. Tymoshenko has led to a policy deadlock.
The deficit has been a sticking point in talks with the IMF on the release of the second installment of a $16.4 billion loan that it agreed to extend to Ukraine last year. The IMF released the first $4.5 billion tranche in November and had made further disbursements contingent on Ukraine reducing the budget shortfall and making progress on bank restructuring. Ms. Tymoshenko's government's 2009 budget is forecast to show a deficit of 3% of gross domestic product.
Last week, an IMF mission monitoring Kiev's progress left without an agreement with the government that would have paved the way for disbursing the next loan tranche. Ceyla Pazarbasioglu, assistant director of the European Department of the IMF, said "further actions, including structural fiscal measures, are needed for us to recommend completion of the review." [James Marson and Louise Radnofsky contributed to this article. Write to Alan Cullison at alan.cullison@wsj.com]
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3. UNCERTAINTY ON IMF LOAN SENDS UKRAINE TO MOSCOW
By Alan Cullison, The Wall Street Journal, NY, NY, Mon, February 9, 2009
The International Monetary Fund is likely to suspend loan payments to Ukraine, a move that would further push the government toward Moscow for aid and exacerbate a feud between top leaders in Kiev.
Ukraine is failing to meet the terms of its loan deal with the IMF, and likely won't get the next installment this month, according to a person close to talks between the fund and the government in Kiev.
Faced with a cash shortage, Kiev is passing the hat around to global powers. Talks were held in Moscow last week over a $5 billion loan to help plug Ukraine's budget deficit.
Ukraine Prime Minister Yulia Tymoshenko said her government also sent letters to the U.S., European Union, China and Japan, and that "Russia is ready to help with the credit agreement's signing."
President Viktor Yushchenko criticized the talks with Moscow. "It's a dangerous policy and poses a threat to Ukraine's national interests," he said. The U.S. State Department said it was looking into reports of Ukraine's request for aid.
Ukraine has been hit by falling prices of metals and fertilizers, its main exports. Infighting between Mr. Yushchenko and Ms. Tymoshenko has led to a policy deadlock.
The deficit has been a sticking point in talks with the IMF on the release of the second installment of a $16.4 billion loan that it agreed to extend to Ukraine last year. The IMF released the first $4.5 billion tranche in November and had made further disbursements contingent on Ukraine reducing the budget shortfall and making progress on bank restructuring. Ms. Tymoshenko's government's 2009 budget is forecast to show a deficit of 3% of gross domestic product.
Last week, an IMF mission monitoring Kiev's progress left without an agreement with the government that would have paved the way for disbursing the next loan tranche. Ceyla Pazarbasioglu, assistant director of the European Department of the IMF, said "further actions, including structural fiscal measures, are needed for us to recommend completion of the review." [James Marson and Louise Radnofsky contributed to this article. Write to Alan Cullison at alan.cullison@wsj.com]
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4. UKRAINE APPLIES TO 14 COUNTRIES FOR CREDIT TO TACKLE
4. UKRAINE APPLIES TO 14 COUNTRIES FOR CREDIT TO TACKLE
THE FINANCIAL AND ECONOMIC CRISIS IN THE COUNTRY
Ukrainian News Agency, Kyiv, Ukraine, Thu, February 12, 2009
KYIV - Ukraine has applied to at least 14 countries for a credit to tackle the financial and economic crisis in the country. Pavlo Sultanskyi, the director of the economic cooperation department of the Ukrainian Ministry of Foreign Affairs, said this during a meeting of the press club in Kyiv.
"We have applied to international financial organizations, including the European Investment bank, the World Bank, the European Bank for Reconstruction and Development. We have applied to a number of countries of the world that, in our opinion, could potentially provide some funds for overcoming these or others aspects of the financial crisis in Ukraine," he said.
According to him, Ukraine has applied with a request for credit assistance to Australia, Britain, Canada, Kuwait, the Netherlands, Norway, Germany, Singapore, the United Arab Emirates, Israel, Italy, Switzerland, South Korea, and some other countries. Sultanskyi said the Ministry of Foreign Affairs was in talks with these countries on the matter at the level of experts.
Further, Sultanskyi said Ukraine has yet to receive an official answer from Russia concerning the possibility of providing credit assistance.
As Ukrainian News earlier reported, the United States has said it is prepared to consider Ukraine's request on allocation of a loan to cover the deficit of the Ukrainian national budget in 2009 when the country receives such a request from the Ukrainian state. Russia has requested further information about the current situation in the Ukrainian economy to consider the allocation of the credit.
On February 9, the Russian Finance Ministry said the Ukrainian Finance Ministry has applied to the Russian side with a request to consider the possibility of giving a credit of USD 5 billion to cover the deficit of the national budget in 2009.
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U.S.-Ukraine Business Council (USUBC): http://www.usubc.org
Promoting U.S.-Ukraine business relations & investment since 1995.
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5. UKRAINE CAN AVOID SOVEREIGN DEFAULT SAYS CONCORDE CAPITAL
5. UKRAINE CAN AVOID SOVEREIGN DEFAULT SAYS CONCORDE CAPITAL
Ukrinform, Kyiv, Ukraine, Thu, February 12, 2009
KYIV - The reserves of the National Bank of Ukraine by the end of 2009 will reach USD 23.3 billion, which is quite enough to avoid a sovereign default this year, says Andriy Parkhomenko, economist of the Concorde Capital investment company.
Parkhomenko noted that the fear of a possible sovereign default is based on the need to repay USD 38.2 billion of the corporate debt in 2009, the company's press service reported. IC
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6. SWEDISH RETAIL GIANT IKEA COULD INVEST $2.5 B IN
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6. SWEDISH RETAIL GIANT IKEA COULD INVEST $2.5 B IN
UKRAINIAN REAL ESTATE MARKET IF CONDITIONS FAVORABLE
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
KYIV - Swedish retail giant IKEA is still interested in entering Ukraine and, if conditions are favorable, the company could invest around $2.5 million into the local real estate market, Oksana Belaichuk, the company's public relations head for Russia and the CIS, told Interfax.
"Our company is still interested in entering the Ukrainian market. With a favorable turnout of events, IKEA's total investment packet in Ukraine could come to around $2.5 billion. It will be possible to comment on total investment in separate projects after the actual parameters are set," she said.
Belaichuk said that the company was looking into the possibility of implementing major investment projects in Kyiv, Kharkiv, Dnipropetrovsk, Odesa, Donetsk and Lviv.
"Today IKEA owns a 64-hectare section in the Odesa region, and negotiations are underway in Kyiv, Donetsk, Dnipropetrovsk, Kharkiv and Lviv. No final agreements have been made yet in these cities," she said.
Belaichuk said that the company is interested in acquiring sits sized around 20 to 30 hectares. "We usually focus on retail center projects, the construction of which usually requires around 20 to 30 hectares. The final project is always developed bearing in mind the particular features of the actual land plot.
For site selection, important factors for us are location, infrastructure, transport accessibility, land value and so forth. A retail center would be easily accessible from any part of the city or suburb by not only private car but also public transport," she said.
Belaichuk said that it was still too soon to comment on the timing of the Odesa project's realization. "For now, it is hard to say. This depends on how much time is necessary for detailed development and agreement on the project and its adaptation to the site, as well as rendering all the necessary infrastructure," she added.
As reported, IKEA announced plans to enter Ukraine early in 2005 and planned to open its first outlet in Kyiv in autumn 2006. However, the process has been delayed due to complications connected to the allocation of land.
In September 2007, European Bank for Reconstruction and Development (EBRD) announced its plans to provide IKEA $100 million in loan funds for the financing of land acquisitions and retail center construction in Ukraine.
The financing was to consist of four loans to the Swedish company's subsidiary, OOO IKEA Dnipro, for four separate projects in various Ukrainian regions. The total value of the project was put at $414 million.
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7. COCA-COLA SET TO ACQUIRE VINNIFRUIT COMPANY IN UKRAINE
bne Ukraine Daily List, Berlin, Germany, Mon, February 9, 2009
According to a report in today's Delo, the world's largest beverage company Coca-Cola (KO US) is finalizing a deal to purchase Vinnytsia [Ukraine] based juice and non-alcoholic beverage producer Vinnifruit (PFTS: VINIP).
The Ukrainian company's majority holders completed buying out 7.47% of shares from minorities last week, and are prepared to sell the 80%+ stake, reportedly to Coca-Cola.
The price of the potential deal was not disclosed. In 2007 Coca-Cola had been in the running to purchase the largest Ukrainian juice maker Sandora, but was beat out by PepsiCo, which dropped US$ 542mn for the company. According to Delo, Vinnifruit's debt at the beginning of this year totaled UAH 170mn (US$ 21mn). Danylo Spolsky
NOTE: Coca-Cola is a member of the U.S.-Ukraine Business Council, Washington, D.C., www.usubc.org,
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NOTE: Send in a letter-to-the-editor today. Let us hear from you.
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8. U.S. WESTINGHOUSE INTERESTED IN COOPERATION WITH
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NOTE: Send in a letter-to-the-editor today. Let us hear from you.
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8. U.S. WESTINGHOUSE INTERESTED IN COOPERATION WITH
ENERHOATOM IN PRODUCTION OF NUCLEAR FUEL ASSEMBLIES
IN UKRAINE SAYS U.S. AMBASSADOR WILLIAM TAYLOR
Ukrainian News-on-line, Kyiv, Ukraine, Monday, January 9, 2009
KYIV - The Westinghouse Electric Company, the United States, is interested in co-operation with the Enerhoatom national nuclear power company in production of fuel assemblies in Ukraine, US Ambassador to Ukraine William Taylor told the Q-club Kyiv international energy club.
Taylor also said that launching of the own production would lower the cost of the fresh nuclear fuel for the nuclear power plants. The ambassador confirmed readiness of the American company to expand the cooperation with the Ukrainian nuclear power plants.
As Ukrainian News earlier reported, the Fuel and Energy Ministry of Ukraine hopes for the supply of 42 fuel assemblies of US Westinghouse Electric Company, designed for the loading of the third reaction of the Southern Ukrainian nuclear power plant in Mykolaiv region, at the end of 2009.
In case of the project success, 2011 will give effect to the March 30, 2008 contract Enerhoatom signed with Westinghouse on commercial delivery of nuclear fuel to the Southern Ukrainian nuclear power plant in 2011 - 2015. The contract envisages supply of 630 fuel assemblies for annual planned reloading of minimum three VVER-1000 type reactors of the NPP.
As agreed, the majority of fuel assemblies will be made in the US, but their final assembly and delivery to Ukraine will proceed from Sweden.
Russia's TVEL corporation is the monopoly supplier of nuclear fuel to Ukraine's four NPPs.
NOTE: Westinghouse is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org.
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9. UKRAINE INTERNATIONAL AIRLINES (UIA) JOINS THE
U.S.-UKRAINE BUSINESS COUNCIL (USUBC), MEMBER 102
UIA offers more direct flights from Ukraine to Europe than any other airline
U.S.-Ukraine Business Council (USUBC), Washington, D.C., Tue, Feb 3,2 v009
WASHINGTON, D.C. - Ukraine International Airlines (UIA), Kyiv, Ukraine, with representative offices in the United States, has been approved for USUBC membership, according to the USUBC executive committee, in an announcement on behalf of the entire USUBC membership. Ukraine International Airlines (UIA) offers more direct flights from Ukraine to Europe than any other airline. UIA is the second new member for 2009 and USUBC member number 102.
9. UKRAINE INTERNATIONAL AIRLINES (UIA) JOINS THE
U.S.-UKRAINE BUSINESS COUNCIL (USUBC), MEMBER 102
UIA offers more direct flights from Ukraine to Europe than any other airline
U.S.-Ukraine Business Council (USUBC), Washington, D.C., Tue, Feb 3,2 v009
WASHINGTON, D.C. - Ukraine International Airlines (UIA), Kyiv, Ukraine, with representative offices in the United States, has been approved for USUBC membership, according to the USUBC executive committee, in an announcement on behalf of the entire USUBC membership. Ukraine International Airlines (UIA) offers more direct flights from Ukraine to Europe than any other airline. UIA is the second new member for 2009 and USUBC member number 102.
UIA was established in 1992 as a closed joint stock company. Its shareholders include the State Property Fund of Ukraine (61.6%), Austrian Airlines (22.5%), the European Bank for Reconstruction & Development (9.9%) and Aer Cap (6%).
UIA – being the first Ukrainian carrier to sign a contract with Boeing for B 737 western equipment in 1992 – continues to build on this relationship to date, currently operating 17 Boeing 737 in its fleet with advance orders for another 4 Boeing 737-800 new generation aircraft for delivery in 2009 and 2010 direct from the manufacturer.
MAIN HUB AT KYIV'S BORISPIL AIRPORT
With its main hub at Kyiv’s Borispil Airport (KBP), UIA operates over 300 scheduled flights per week with onward connections across the globe. Passenger traffic has grown steadily by over 20% per annum. Ukraine International co-operates with airlines worldwide on the basis of 126 interline agreements and more than 15 code-share agreements.
Through its partner network UIA serves over 3,000 destinations offering best same-day connections at competitive prices. Today Ukraine International has more than 40 Representative Offices in Ukraine and abroad; the commercial network covers 70 countries and the website www.flyuia.com allows customers to make bookings online.
UIA has its own Maintenance Base at Borispil Airport and is fully certified for JAR145 Ops and IOSA – both certifications were another first for UIA in Eastern Europe.
"PANORAMA CLUB"
Ukraine International Airlines offers frequent travelers its own loyalty program “Panorama Club” giving opportunities to accrue miles on some partner airlines and substantial discounts on other partner products. In January 2007 UIA introduced PanoramaTours (www.panorama-tours.eu) into North America – Panorama Tours is UIA’s in-house tour operation offering competitive packages to Ukraine.
Ukraine International Airlines operates a very successful charter division and has most recently increased its cargo operation. In June 2008 UIA introduced the 737SF Freighter into its fleet, operating scheduled cargo flights between Kiev, Vienna and Lieges with its partners Austrian Airlines and TNT.
Ukraine International Airlines (UIA) is a member of many international organizations such as:
- International Air Transport Association (IATA)
- Clearing House and IATA Billing and Settlement Plans (BSP),
- US Airlines Reporting Corporation (ARC)
- IOSA (IATA Operating Safety Audit Program)
- Association of European Airlines (AEA)
- European Business Association (EBA)
- American Chamber of Commerce in Ukraine (ACC Ukraine)
- International Chamber of Commerce (Ukrainian National Committee)
- The Ukrainian Chamber of Commerce & Industry (UCCI) and now the
- U.S.-Ukraine Business Council (USUBC)
UIA CONTACTS IN UKRAINE & USA
USUBC started meeting with representatives of UIA last June. The first meeting was with the President of UIA, Mr Yuri Miroshnikov. USUBC has been working with UIA on several airline issues in cooperation with USUBC member Boeing including the USA Category II issue and the Cape Town Convention issue.
Susan Hamilton, CTC, General Manager, Sales & Marketing, Ukraine International Airlines, North America, heads up their marketing department. She is located in Texas. Richard Bromberg is the Regional Sales Manager for the Mid-Atlantic Region, located in Virginia, and attended several of the USUBC key meetings in 2008.
In addition Ukraine International Airlines (UIA) has U.S. representation in Chicago, San Francisco and Atlanta and offers passenger and travel agent support through a centrally located Customer Service and Reservations Office located in Texas.
Additional information about UIA can be found at: http://www.flyuia.com or by calling the toll free number 1-800-876-0114. A UIA logo can be found on the USUBC website homepage, www.usubc.org, which will take one to the UIA website.
"USUBC is very pleased to have Ukraine International Airlines (UIA), as a new member" said Morgan Williams, SigmaBleyzer Emerging Markets Private Equity Investment Group, www.SigmaBleyzer.com, who serves as president of USUBC. "USUBC has grown very rapidly during the past 25months and now has a membership base which allows USUBC to provide its members such as Ukraine International Airlines (UIA) with a full-time operation and a significantly expanded program of work," according to President Williams.
LAST TWENTY-FIVE NEW USUBC MEMBERS
The last twenty-five new USUBC members have now included: 3M Ukraine; AeroSvit Ukrainian Airlines; Aitken Berlin LLP/ASIA; AnaCom, Inc; Asters law firm; CEC Government Relations; ContourGlobal Ukraine; Doheny Global Group; Edelman; Foyil Securities; IBM Ukraine; KPMG Ukraine; Mars Ukraine; Microsoft; Pratt & Whitney - Paton; R & J Trading International; RZB Finance (Raiffeisen Group); SE Raelin/Cajo , Inc.; SoftServe, Inc.; Solid Team LLC; The Washington Group (TWG); Ukraine International Airlines (UIA); Vasil Kisil & Partners law firm; Winner Imports Ukraine (Ford, Jaguar, Land Rover, Volvo, Porsche) and Zurich Surety, Credit, & Political Risk.
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10. UKRAINIAN FINANCE MINISTER PYNZENYK OFFERS RESIGNATION
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
KYIV - Ukrainian Finance Minister Viktor Pynzenyk has filed a letter of resignation saying that he cannot abandon the principles of a balanced budget with a minimum deficit, realistic revenue sources and limits on government borrowing.
"In the current conditions, the finance minister has become a hostage to politics. The finance minister can neither change this situation nor abandon his professional approaches," Pynzenyk said in a statement submitted by the finance ministry's press service to Interfax-Ukraine on Thursday.
"Under such conditions there is no point in holding the post of finance minister any longer. In this connection, I have submitted a letter of resignation to the Verkhovna Rada," he said.
Pynzenyk was appointed finance minister on December 18 2007. Earlier, he held the post from February 2005 to August 2006 and in 1992-1993.
Pynzenyk was the first vice-premier, the vice-premier for economic reforms and the vice-premier in October 1994 - April 1997.
He was elected to the parliament several times. Pynzenyk won the election of the Sixth Verkhovna Rada with the Yulia Tymoshenko Bloc as the leader of the Reforms and Order Party. Pynzenyk, born in 1954, is a Doctor of Economics, a professor and a merited economist of Ukraine.
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U.S.-Ukraine Business Council (USUBC) www.usubc.org.
Promoting U.S.-Ukraine business & investment relations since 1995.
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11. UKRAINE FINANCE MINSTER QUITS AFTER ROW WITH PRIME MINISTER
Pynzenyk described himself as a "hostage to politics", citing differences over a deficit contained in the budget backed by Prime Minister Yulia Tymoshenko. The International Monetary Fund had made a deficit-free budget a condition of a $16.4 billion loan.
Ukraine sought the loan to help it weather the world financial crisis which has slashed the value of its hryvnia currency and battered the commodity exporters that form the core of its economy.
"In current conditions, the professional job of finance minister has become a hostage to politics," Pynzenyk said in a statement to parliament that appeared on his ministry's website. "The finance minister cannot change the situation. Nor can he walk away from his professional actions. There is no point in remaining in the job of finance minister in such conditions."
A respected online news service last month published a letter it said was written by Pynzenyk denouncing as unrealistic the government's budget allowing for a deficit equivalent to 3.0 percent of gross domestic product. Pynzenyk criticised publication of the letter, but did not formally deny writing it.
Ukrainian politics has been dominated by a split between Tymoshenko and President Viktor Yushchenko, former allies in the 2004 "Orange Revolution" who are now estranged.
Reflecting the absence of political consensus, Fitch Ratings downgraded Ukraine's credit ratings on Thursday, saying it faced increased risks of a banking and currency crisis, especially if it failed to implement its agreement with the IMF. "The political consensus needed for Ukraine to adhere to its IMF-backed program is fragile ... " it said.
"Discussions between the authorities and fund staff on outstanding issues will continue in coming weeks and we expect the mission to return to Kiev to continue these discussions," Hawley told reporters.
He said Pynzenyk's resignation "merely serves to underline the importance of strong crisis management being essential to the success of the programme".
Yushchenko issued a new call for the cabinet to review its strategy and come up with a more "realistic" budget.
Tymoshenko, addressing reporters in Kiev, noted that the minister had been on sick leave and in hospital for some time. "Not all officials are able to deal with the world financial crisis. Not all are able to work and react to the challenges in a proper manner," she said. "Those who are the weakest give ground on the key positions and end up leaving and dealing with other matters."
Tymoshenko, who had also fallen out with Yushchenko over her approach to Moscow for a $5 billion credit, said a new minister would soon be appointed.
In a separate action that appeared linked to IMF demands, the central bank said it would no longer sell foreign currency to banks that conduct transactions at exchange rates exceeding the average market value of the U.S. dollar.
The bank suggested it could take other punitive measures against banks conducting such transactions. Dealers said the move was likely to create further dollar shortages. (Writing by Ron Popeski, editing by Myra MacDonald)
By Natalya Zinets, Reuters, Kiev, Ukraine, Thu, Feb 12, 2009
KIEV - Ukrainian Finance Minister Viktor Pynzenyk quit on Thursday in a budget row with the prime minister, and the IMF told authorities it wanted better "crisis management" from the ex-Soviet state.
Pynzenyk described himself as a "hostage to politics", citing differences over a deficit contained in the budget backed by Prime Minister Yulia Tymoshenko. The International Monetary Fund had made a deficit-free budget a condition of a $16.4 billion loan.
Ukraine sought the loan to help it weather the world financial crisis which has slashed the value of its hryvnia currency and battered the commodity exporters that form the core of its economy.
"In current conditions, the professional job of finance minister has become a hostage to politics," Pynzenyk said in a statement to parliament that appeared on his ministry's website. "The finance minister cannot change the situation. Nor can he walk away from his professional actions. There is no point in remaining in the job of finance minister in such conditions."
A respected online news service last month published a letter it said was written by Pynzenyk denouncing as unrealistic the government's budget allowing for a deficit equivalent to 3.0 percent of gross domestic product. Pynzenyk criticised publication of the letter, but did not formally deny writing it.
Ukrainian politics has been dominated by a split between Tymoshenko and President Viktor Yushchenko, former allies in the 2004 "Orange Revolution" who are now estranged.
Reflecting the absence of political consensus, Fitch Ratings downgraded Ukraine's credit ratings on Thursday, saying it faced increased risks of a banking and currency crisis, especially if it failed to implement its agreement with the IMF. "The political consensus needed for Ukraine to adhere to its IMF-backed program is fragile ... " it said.
"CRISIS MANAGEMENT"
An IMF mission left Kiev last week with no decision on disbursing the second instalment of the loan for Ukraine. Fund spokesman David Hawley, speaking in Washington, said talks were proceeding, but concerted action was needed from authorities. He gave no date for a return of the mission.
An IMF mission left Kiev last week with no decision on disbursing the second instalment of the loan for Ukraine. Fund spokesman David Hawley, speaking in Washington, said talks were proceeding, but concerted action was needed from authorities. He gave no date for a return of the mission.
"Discussions between the authorities and fund staff on outstanding issues will continue in coming weeks and we expect the mission to return to Kiev to continue these discussions," Hawley told reporters.
He said Pynzenyk's resignation "merely serves to underline the importance of strong crisis management being essential to the success of the programme".
Yushchenko issued a new call for the cabinet to review its strategy and come up with a more "realistic" budget.
Tymoshenko, addressing reporters in Kiev, noted that the minister had been on sick leave and in hospital for some time. "Not all officials are able to deal with the world financial crisis. Not all are able to work and react to the challenges in a proper manner," she said. "Those who are the weakest give ground on the key positions and end up leaving and dealing with other matters."
Tymoshenko, who had also fallen out with Yushchenko over her approach to Moscow for a $5 billion credit, said a new minister would soon be appointed.
In a separate action that appeared linked to IMF demands, the central bank said it would no longer sell foreign currency to banks that conduct transactions at exchange rates exceeding the average market value of the U.S. dollar.
The bank suggested it could take other punitive measures against banks conducting such transactions. Dealers said the move was likely to create further dollar shortages. (Writing by Ron Popeski, editing by Myra MacDonald)
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12. UKRAINE'S OUTLOOK WORSENS, AS FINANCE MINISTER QUITS
Fitch cuts Ukraine's credit ratings, citing possible banking and currency crisis
By Polya Lesova, MarketWatch, New York, NY, Thu, Feb. 12, 2009
NEW YORK - Ukraine's economic outlook took a turn for the worse on Thursday after the finance minister resigned and Fitch Ratings downgraded the country's credit ratings on growing risks of a banking and currency crisis.
Ukraine's finance minister, Viktor Pynzenyk, quit his post Thursday over budget and policy disagreements with Prime Minister Yulia Tymoshenko, the Associated Press reported.
Pynzenyk said he was resigning because of the government's refusal to cut spending and reduce this year's huge budget deficit, according to the report.
Separately, Fitch Ratings downgraded Thursday Ukraine's long-term foreign and local currency issuer default ratings to B from B+.
"This reflects increased risk of a banking and currency crisis in Ukraine, due to intensified stress on the financial system and greater risks to successful implementation of Ukraine's IMF [ International Monetary Fund]-supported program," Fitch said.
Thursday's developments came amid growing uncertainty as to whether the IMF will disburse more money under its arrangement with Ukraine. Last November, Ukraine secured a $16.4 billion stand-by arrangement with the IMF; of that money, only $4.5 billion has been disbursed so far.
An IMF mission reviewing Ukraine's arrangement with the fund left Kiev last week without making it clear whether or not more money will be disbursed.
Ukraine is one of the Eastern European nations most adversely affected by the global financial and economic crises.
The country is also plagued by political instability. Last Friday, Tymoshenko's government survived a no-confidence vote in parliament. The situation has been further complicated by a power struggle between Tymoshenko and President Viktor Yushchenko, once a close ally.
RESIGNATION SPELLS TROUBLE
Pynzenyk's resignation is "obviously a blow to the Tymoshenko administration but not entirely unexpected," said Timothy Ash, head of CEEMEA research, at Royal Bank of Scotland.
"Pynzenyk was well regarded -- seen as a competent "monetary" economist, and generally seen as being a strong supporter of the IMF's drive for the government to run a balanced budget in 2009," Ash said in a research note.
In December, Pynzenyk refused to sign the 2009 budget, which was approved by parliament and targeted a deficit of 3% of gross domestic product.
"The planned deficit would be in violation of the IMF agreement, which Pynzenyk was instrumental in getting, so the exit of an orthodox policy-maker spells trouble for Ukraine," said Win Thin, senior currency strategist at Brown Brothers Harriman & Co.
In recent days, there have been media reports that the IMF may not release the second tranche of the $16.4 billion aid program as scheduled because of disagreements over fiscal policy.
"While the IMF has raised the possibility of adjusting some of the program targets due to the sharper than expected deterioration in the global economic outlook, we do not think it will cut Ukraine much slack," Thin said in a research note. Ukraine's GDP is expected to contract by over 5% this year.
FITCH CUTS RATINGS
Fitch cut Ukraine's credit ratings to B from B+ on Thursday, bringing them in line with Standard & Poor's B rating.
"The political consensus needed for Ukraine to adhere to its IMF-backed program is fragile, while the global and regional macroeconomic environment has deteriorated further since the previous downgrade in October 2008," said Andrew Colquhoun, director in Fitch's sovereigns group, in a statement.
Stress on Ukraine's heavily-dollarized financial system has intensified, and the central bank has taken six banks into administration, Fitch said. Local-currency deposits in the banking system fell 7.4% month-on-month in January, while foreign exchange deposits declined 2.2%.
Ukraine's currency, the hryvnia, has fallen 46% against the U.S. dollar since July. The central bank has come under political pressure to stop the currency's depreciation, Fitch said. The country's foreign exchange reserves fell to $28.8 billion by end-January 2009, 24% below a peak of $38.1 billion at the end of August.
"A full banking and currency crisis would damage the real economy and the sovereign's financing options, directly impairing sovereign creditworthiness," Fitch said. The agency said it expects the next $1.9 billion tranche from the IMF to be disbursed, possibly with a delay.
12. UKRAINE'S OUTLOOK WORSENS, AS FINANCE MINISTER QUITS
Fitch cuts Ukraine's credit ratings, citing possible banking and currency crisis
By Polya Lesova, MarketWatch, New York, NY, Thu, Feb. 12, 2009
NEW YORK - Ukraine's economic outlook took a turn for the worse on Thursday after the finance minister resigned and Fitch Ratings downgraded the country's credit ratings on growing risks of a banking and currency crisis.
Ukraine's finance minister, Viktor Pynzenyk, quit his post Thursday over budget and policy disagreements with Prime Minister Yulia Tymoshenko, the Associated Press reported.
Pynzenyk said he was resigning because of the government's refusal to cut spending and reduce this year's huge budget deficit, according to the report.
Separately, Fitch Ratings downgraded Thursday Ukraine's long-term foreign and local currency issuer default ratings to B from B+.
"This reflects increased risk of a banking and currency crisis in Ukraine, due to intensified stress on the financial system and greater risks to successful implementation of Ukraine's IMF [ International Monetary Fund]-supported program," Fitch said.
Thursday's developments came amid growing uncertainty as to whether the IMF will disburse more money under its arrangement with Ukraine. Last November, Ukraine secured a $16.4 billion stand-by arrangement with the IMF; of that money, only $4.5 billion has been disbursed so far.
An IMF mission reviewing Ukraine's arrangement with the fund left Kiev last week without making it clear whether or not more money will be disbursed.
Ukraine is one of the Eastern European nations most adversely affected by the global financial and economic crises.
The country is also plagued by political instability. Last Friday, Tymoshenko's government survived a no-confidence vote in parliament. The situation has been further complicated by a power struggle between Tymoshenko and President Viktor Yushchenko, once a close ally.
RESIGNATION SPELLS TROUBLE
Pynzenyk's resignation is "obviously a blow to the Tymoshenko administration but not entirely unexpected," said Timothy Ash, head of CEEMEA research, at Royal Bank of Scotland.
"Pynzenyk was well regarded -- seen as a competent "monetary" economist, and generally seen as being a strong supporter of the IMF's drive for the government to run a balanced budget in 2009," Ash said in a research note.
In December, Pynzenyk refused to sign the 2009 budget, which was approved by parliament and targeted a deficit of 3% of gross domestic product.
"The planned deficit would be in violation of the IMF agreement, which Pynzenyk was instrumental in getting, so the exit of an orthodox policy-maker spells trouble for Ukraine," said Win Thin, senior currency strategist at Brown Brothers Harriman & Co.
In recent days, there have been media reports that the IMF may not release the second tranche of the $16.4 billion aid program as scheduled because of disagreements over fiscal policy.
"While the IMF has raised the possibility of adjusting some of the program targets due to the sharper than expected deterioration in the global economic outlook, we do not think it will cut Ukraine much slack," Thin said in a research note. Ukraine's GDP is expected to contract by over 5% this year.
FITCH CUTS RATINGS
Fitch cut Ukraine's credit ratings to B from B+ on Thursday, bringing them in line with Standard & Poor's B rating.
"The political consensus needed for Ukraine to adhere to its IMF-backed program is fragile, while the global and regional macroeconomic environment has deteriorated further since the previous downgrade in October 2008," said Andrew Colquhoun, director in Fitch's sovereigns group, in a statement.
Stress on Ukraine's heavily-dollarized financial system has intensified, and the central bank has taken six banks into administration, Fitch said. Local-currency deposits in the banking system fell 7.4% month-on-month in January, while foreign exchange deposits declined 2.2%.
Ukraine's currency, the hryvnia, has fallen 46% against the U.S. dollar since July. The central bank has come under political pressure to stop the currency's depreciation, Fitch said. The country's foreign exchange reserves fell to $28.8 billion by end-January 2009, 24% below a peak of $38.1 billion at the end of August.
"A full banking and currency crisis would damage the real economy and the sovereign's financing options, directly impairing sovereign creditworthiness," Fitch said. The agency said it expects the next $1.9 billion tranche from the IMF to be disbursed, possibly with a delay.
"However, Fitch is concerned that the program is at risk from the difficulty of securing the necessary policy consensus in a challenging political environment," the agency said. "Even if the program remains on track, the further deterioration in global economic prospects since October 2008 adds to the difficulties facing Ukraine." Fitch expects Ukraine's economy to contract 4.5% this year. NOTE: Polya Lesova is a New York-based reporter for MarketWatch.
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13. UKRAINE: FINANCE MINISTER RESIGNS
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13. UKRAINE: FINANCE MINISTER RESIGNS
By Timothy Ash, Head of CEEMEA research
Royal Bank of Scotland, London, UK, Thu, February 12, 2009
Royal Bank of Scotland, London, UK, Thu, February 12, 2009
LONDON - Ukraine’s finance minister Viktor Pynzenyk has tendered his resignation. The news is obviously a blow to the Tymoshenko administration but not entirely unexpected.
Pynzenyk was well regarded (seen as a competent “monetary” economist), and generally seen as been a strong supporter of the IMF’s drive for the government to run a balanced budget in 2009. Incredibly in December Pynzenyk refused to sign the 2009 budget, which was approved by parliament and targeted a deficit of 3% of GDP.
Pynzenyk was well regarded (seen as a competent “monetary” economist), and generally seen as been a strong supporter of the IMF’s drive for the government to run a balanced budget in 2009. Incredibly in December Pynzenyk refused to sign the 2009 budget, which was approved by parliament and targeted a deficit of 3% of GDP.
Subsequently a letter reportedly from Pynzenyk to Tymoshenko was published in the local media, in which the former finance ministry stated his objections to the 2009 budget draft.
Pynzenyk stayed on for several months after passage of the budget, presumably, with the objective of trying to keep the budget on track, with the IMF’s requirements. It does seem as though he was managing to curb spending, with public sector employees only getting paid 60-70% of salaries in recent months.
His departure is interesting, given that only this week Tymoshenko had suggested that she was willing to compromise with the IMF, and make budget/macro revisions.
There had been rumours doing the rounds that Pynzenyk would lose his job as part of a wider reshuffle, which would bring in new parties (Regions) into the ruling coalition. This might hence be viewed as a case of Pynzenyk jumping before he was pushed.
Pynzenyk stayed on for several months after passage of the budget, presumably, with the objective of trying to keep the budget on track, with the IMF’s requirements. It does seem as though he was managing to curb spending, with public sector employees only getting paid 60-70% of salaries in recent months.
His departure is interesting, given that only this week Tymoshenko had suggested that she was willing to compromise with the IMF, and make budget/macro revisions.
There had been rumours doing the rounds that Pynzenyk would lose his job as part of a wider reshuffle, which would bring in new parties (Regions) into the ruling coalition. This might hence be viewed as a case of Pynzenyk jumping before he was pushed.
Tymoshenko’s ability to fire Pynzenyk though was somewhat limited by the fact that her former finance minister controlled a dozen or more deputies in parliament thought his former “For Reform” faction, which had allied with the Block Yulia Tymoshenko (BYuT) in last parliamentary elections.
Pynzenyk’s departure though is very significant and will force a rethink by Tymoshenko in terms of the structure of the ruling coalition.
NOTE: This material has been prepared by The Royal Bank of Scotland plc (“RBS”) for information purposes only and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. This material should be regarded as a marketing communication and may have been produced in conjunction with the RBS trading desks that trade as principal in the instruments mentioned herein.
Pynzenyk’s departure though is very significant and will force a rethink by Tymoshenko in terms of the structure of the ruling coalition.
NOTE: This material has been prepared by The Royal Bank of Scotland plc (“RBS”) for information purposes only and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. This material should be regarded as a marketing communication and may have been produced in conjunction with the RBS trading desks that trade as principal in the instruments mentioned herein.
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14. FITCH RATINGS LOWERS UKRAINE'S RATINGS DEEPER INTO JUNK
The downgrade comes just days after The Wall Street Journal reported the International Monetary Fund is likely to suspend loan payments to Ukraine, a move that would further push the government toward Moscow for aid and exacerbate a feud between top leaders in Kiev.
Ukraine, which has been hit hard by falling world prices of its main exports of metals and fertilizers, is failing to meet the terms of its loan deal with the IMF, and likely won't get the next installment this month, the Journal reported.
Ukraine's debt spread on JPMorgan's Emerging Markets Bond Index Global widened following the news, but returns stayed pat. Ukraine's risk premium on JPMorgan's EMBIG was 40 basis points wider at 3102 basis points over U.S. Treasurys. Returns were a negative 1.34%.
That compares to the broader index's spread three basis points wider at 687 basis points over Treasurys for a negative 0.95% return.
Risk premiums on Ukraine's five-year credit default swaps - privately negotiated contracts that many investors use as a proxy for the creditworthiness of a sovereign or company - are quoted at 56 points upfront Thursday, CMA Vision said. This means that an investor would have to pay $5.6 million upfront plus $500,000 a year to protect $10 million of Ukraine's bonds against a default.
Faced with a cash shortage, Kiev is passing the hat around to global powers. Talks were held in Moscow last week over a $5 billion loan to help plug Ukraine's budget deficit. Prime Minister Yulia Tymoshenko said her government also sent letters to the U.S., European Union, China and Japan.
The deficit has been a sticking point in talks with the IMF on the release of the second installment of a $16.4 billion loan that it agreed to extend to Ukraine last year. The IMF released the first $4.5 billion tranche of the loan in November and had made further disbursements contingent on Ukraine's reducing the budget shortfall and making progress on bank restructuring.
Fitch, which lowered its long-term foreign and local currency issuer default ratings on the company by one notch to B, said it expects Ukraine to get the second tranche of the loan with a possible delay but cited concerns about the political environment in the country.
The ratings firm also said Ukraine's local currency has come under pressure, leading to political pressure on the central bank to stem the depreciation, even at the cost of draining reserves.
Fitch cautioned that the country's debt maturities this year may further erode the reserves, which stood at $28.8 billion at the end of January, down 24% from the end of August. Fitch said it expects the economy to contract 4.5% in 2009, making fiscal tightening more difficult to implement.
Fitch last lowered Ukraine's ratings in October. Standard & Poor's Ratings Services also issued a downgrade that month.
By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com (Claudia Assis in New York contributed to this report.)
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14. FITCH RATINGS LOWERS UKRAINE'S RATINGS DEEPER INTO JUNK
Dow Jones Newswires, New York, NY, Thursday February 12, 2009
NEW YORK - Fitch Ratings lowered its currency ratings on Ukraine deeper into junk territory, reflecting the increased risk of a banking and currency crisis in the former Soviet republic.
NEW YORK - Fitch Ratings lowered its currency ratings on Ukraine deeper into junk territory, reflecting the increased risk of a banking and currency crisis in the former Soviet republic.
The downgrade comes just days after The Wall Street Journal reported the International Monetary Fund is likely to suspend loan payments to Ukraine, a move that would further push the government toward Moscow for aid and exacerbate a feud between top leaders in Kiev.
Ukraine, which has been hit hard by falling world prices of its main exports of metals and fertilizers, is failing to meet the terms of its loan deal with the IMF, and likely won't get the next installment this month, the Journal reported.
Ukraine's debt spread on JPMorgan's Emerging Markets Bond Index Global widened following the news, but returns stayed pat. Ukraine's risk premium on JPMorgan's EMBIG was 40 basis points wider at 3102 basis points over U.S. Treasurys. Returns were a negative 1.34%.
That compares to the broader index's spread three basis points wider at 687 basis points over Treasurys for a negative 0.95% return.
Risk premiums on Ukraine's five-year credit default swaps - privately negotiated contracts that many investors use as a proxy for the creditworthiness of a sovereign or company - are quoted at 56 points upfront Thursday, CMA Vision said. This means that an investor would have to pay $5.6 million upfront plus $500,000 a year to protect $10 million of Ukraine's bonds against a default.
Faced with a cash shortage, Kiev is passing the hat around to global powers. Talks were held in Moscow last week over a $5 billion loan to help plug Ukraine's budget deficit. Prime Minister Yulia Tymoshenko said her government also sent letters to the U.S., European Union, China and Japan.
The deficit has been a sticking point in talks with the IMF on the release of the second installment of a $16.4 billion loan that it agreed to extend to Ukraine last year. The IMF released the first $4.5 billion tranche of the loan in November and had made further disbursements contingent on Ukraine's reducing the budget shortfall and making progress on bank restructuring.
Fitch, which lowered its long-term foreign and local currency issuer default ratings on the company by one notch to B, said it expects Ukraine to get the second tranche of the loan with a possible delay but cited concerns about the political environment in the country.
The ratings firm also said Ukraine's local currency has come under pressure, leading to political pressure on the central bank to stem the depreciation, even at the cost of draining reserves.
Fitch cautioned that the country's debt maturities this year may further erode the reserves, which stood at $28.8 billion at the end of January, down 24% from the end of August. Fitch said it expects the economy to contract 4.5% in 2009, making fiscal tightening more difficult to implement.
Fitch last lowered Ukraine's ratings in October. Standard & Poor's Ratings Services also issued a downgrade that month.
By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com (Claudia Assis in New York contributed to this report.)
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15. AUSTRIA CALLS ON EUROPEAN UNION TO SUPPORT UKRAINE
By Stefan Wagstyl in Kiev, Financial Times, London, UK, Thu, Feb 12 2009
Josef Pröll, who is also the country’s vice chancellor, urged the EU to support Ukraine because of its strategic importance and its political and economic ties with union members.
“Ukraine is a very important keystone country and we must avoid a domino effect inside the EU, if there is economic and political catastrophe in such a huge neighbouring country. There could be a domino effect in terms of economic difficulties in the EU” Mr Pröll told the FT. ”We don’t see this scenario developing now. But we must prepare and keep an eye on Ukraine,” he added.
Mr Pröll was speaking during a trip to eastern Europe made amid mounting international concern about the financial condition of the region’s more vulnerable states.
Ukraine, which like Latvia and Hungary, has secured an emergency International Monetary Fund package, is seeking up to $5bn in extra loans from sources including Russia, the US, the Middle east, Japan and the EU.
Mr Pröll is visiting Ukraine, Croatia, Romania and Bulgaria before a meeting of EU finance ministers early next month where support for vulnerable eastern European states is due to be discussed.
Mr Pröll said that while the EU’s greatest responsibility was for member states, it also had to support candidate members and Ukraine which had no membership perspective but had close links with the EU.
Mr Pröll said he was not calling for wholesale financial support. The International Monetary Fund had to take the lead in giving financial assistance to those states which needed it, he said. But the EU had a range of financial and non-financial instruments available for member states and non-members, including Ukraine.
Mr Pröll pledged Austrian support for its banks, which are among the region’s biggest lenders. Austrian banks which drew on a €100bn government support plan could keep operating in eastern Europe “without restriction”.
Asked about French efforts to link assistance to French carmakers to safeguarding French jobs, which has caused alarm in eastern Europe's carmaking nations Mr Pröll said: protectionism is not the right answer.”
“If we look to the last crisis 80 years ago where one country tried to pass its problems to another country and so on, they did not solve their problems. We can only be successful if work together and keep open the economy,” said Mr Pröll.
Mr Pröll added that western Europe had a particular responsibility to eastern Europe. ”We have made a lot of money in these countries in the last 20 years and now in this crisis we must support them in these difficult times.”
Hryhoriy Nemyria, Ukraine’s deputy prime minister, said Kiev’s bids for extra loans on top of its IMF package were a ”usual and natural” way of complementing IMF aid.
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16. NBU CONSIDERING TO RE-IMPOSE MANDATORY DOLLAR SALES ON EXPORTERS
By Stefan Wagstyl in Kiev, Financial Times, London, UK, Thu, Feb 12 2009
KIEV - An economic or political “catastrophe” in Ukraine could trigger a “domino effect” of economic difficulties within the European Union, Austria’s finance minister warned yesterday.
Josef Pröll, who is also the country’s vice chancellor, urged the EU to support Ukraine because of its strategic importance and its political and economic ties with union members.
“Ukraine is a very important keystone country and we must avoid a domino effect inside the EU, if there is economic and political catastrophe in such a huge neighbouring country. There could be a domino effect in terms of economic difficulties in the EU” Mr Pröll told the FT. ”We don’t see this scenario developing now. But we must prepare and keep an eye on Ukraine,” he added.
Mr Pröll was speaking during a trip to eastern Europe made amid mounting international concern about the financial condition of the region’s more vulnerable states.
Ukraine, which like Latvia and Hungary, has secured an emergency International Monetary Fund package, is seeking up to $5bn in extra loans from sources including Russia, the US, the Middle east, Japan and the EU.
Mr Pröll is visiting Ukraine, Croatia, Romania and Bulgaria before a meeting of EU finance ministers early next month where support for vulnerable eastern European states is due to be discussed.
Mr Pröll said that while the EU’s greatest responsibility was for member states, it also had to support candidate members and Ukraine which had no membership perspective but had close links with the EU.
Mr Pröll said he was not calling for wholesale financial support. The International Monetary Fund had to take the lead in giving financial assistance to those states which needed it, he said. But the EU had a range of financial and non-financial instruments available for member states and non-members, including Ukraine.
Mr Pröll pledged Austrian support for its banks, which are among the region’s biggest lenders. Austrian banks which drew on a €100bn government support plan could keep operating in eastern Europe “without restriction”.
Asked about French efforts to link assistance to French carmakers to safeguarding French jobs, which has caused alarm in eastern Europe's carmaking nations Mr Pröll said: protectionism is not the right answer.”
“If we look to the last crisis 80 years ago where one country tried to pass its problems to another country and so on, they did not solve their problems. We can only be successful if work together and keep open the economy,” said Mr Pröll.
Mr Pröll added that western Europe had a particular responsibility to eastern Europe. ”We have made a lot of money in these countries in the last 20 years and now in this crisis we must support them in these difficult times.”
Hryhoriy Nemyria, Ukraine’s deputy prime minister, said Kiev’s bids for extra loans on top of its IMF package were a ”usual and natural” way of complementing IMF aid.
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16. NBU CONSIDERING TO RE-IMPOSE MANDATORY DOLLAR SALES ON EXPORTERS
bne Ukraine Daily List, Berlin, Germany, Thu, February 12, 2009
KYIV - In a return to the drastic policies of the 1990s, the National Bank of Ukraine said on Wednesday February 11 that it was considering re-imposing a rule that forces exporters to sell part of their hard currency income to the state.
The measure was widely used in eastern Europe for most of the 1990s as a simply way for government's to build up hard currency reserves, but has the result of sapping otherwise profitable companies' ability to invest into production. In almost all of the CIS countries the mandatory sale of currency rule was phased out by the start of this decade. Ukraine was one of the last to dump the rule which was in force between 1998 and 2005.
The board of the NBU says it may ask companies to sell half their hard currency export revenues on the currency exchange, board chairman Petro Poroshenko told journalists, reports Prime Tass.
The NBU wants to shorten the term for repatriating foreign currency revenue to 90 days from 180 days and to take measures against fictitious import. The NBU is submitting the proposals to the parliament and government. Poroshenko said a return to mandatory sales is, "a temporary but extremely necessary measure."
The measure would likely bring in the government about $4bn in hard currency this year. Analysts estimate that Ukraine will see some $18bn of hard currency capital flight this year. Poroshenko said some exceptions would be made to the rule on a case by case basis.
KYIV - In a return to the drastic policies of the 1990s, the National Bank of Ukraine said on Wednesday February 11 that it was considering re-imposing a rule that forces exporters to sell part of their hard currency income to the state.
The measure was widely used in eastern Europe for most of the 1990s as a simply way for government's to build up hard currency reserves, but has the result of sapping otherwise profitable companies' ability to invest into production. In almost all of the CIS countries the mandatory sale of currency rule was phased out by the start of this decade. Ukraine was one of the last to dump the rule which was in force between 1998 and 2005.
The board of the NBU says it may ask companies to sell half their hard currency export revenues on the currency exchange, board chairman Petro Poroshenko told journalists, reports Prime Tass.
The NBU wants to shorten the term for repatriating foreign currency revenue to 90 days from 180 days and to take measures against fictitious import. The NBU is submitting the proposals to the parliament and government. Poroshenko said a return to mandatory sales is, "a temporary but extremely necessary measure."
The measure would likely bring in the government about $4bn in hard currency this year. Analysts estimate that Ukraine will see some $18bn of hard currency capital flight this year. Poroshenko said some exceptions would be made to the rule on a case by case basis.
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17. DEFICIT OF UKRAINE'S FOREIGN TRADE IN COMMODITIES 2008 SOARS 63.7%
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17. DEFICIT OF UKRAINE'S FOREIGN TRADE IN COMMODITIES 2008 SOARS 63.7%
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
KYIV - The deficit of Ukraine's foreign trade in commodities in 2008 was estimated at $18.532 billion, which was 63.7% up on 2007 when the deficit amounted to $11.322 billion, the State Statistics Committee reported on Wednesday.
According to the committee, the export of commodities over the period under review grew by 35.9% year-over-year, to $67.003 billion, while import rose by 41.1%, to $85.534 billion.
The deficit of foreign trade in commodities was under the influence of some groups of goods – energy materials, oil and fuel ("minus" $18.723 billion), vehicles, excluding rolling stock ("minus" $10.126 billion), and mechanical equipment ("minus" $6.073 billion).
In December 2008, export of goods fell by 15.5% year-over-year, to $4.061 billion, while import fell by 27.3%, to $4.779 billion. The ratio of the coverage of import by export in 2008 was 0.78, whereas a year ago it was 0.81. Ukraine traded with partners from 217 countries and regions.
Exports to CIS countries were 35.5% of overall exports in 2008, while exports to Europe were 29.5%, including 27.1% to the European Union, to Asia 22.8%, to America 6.2%, to Africa 5.8%, and to Australia and Oceania 0.1%.
Exports to Australia and Oceania in 2008 grew 4.1 times, to America- by 54.3%, to Asia by 47.4%, to CIS by 28%, exports to Africa grew by 39.8% and Europe by 33.6%.
The largest exports supplies in 2008 were to Russia – 23.5% of overall exports, Turkey –6.9%, Italy 4.3%, Poland 3.5%, Belarus 3.1%, the United States 2.9% and Germany 2.7%,
In 2008, exports to the United States grew 84.2 times, Belarus grew by 34.8%, Turkey – by 27.1%, Poland 42.8%, Russia by 24.2%, Germany – by 11.7% and exports to Italy jumped by 8.8%.
The share of ferrous metals of total exports grew from 33.9% to 34.3%, the share of oil and fuel – from 5.3% to 6.1%, the share of grain from 1.5% to 5.5%, the share of railway and tram locomotives and track equipment – from 3.7% to 4%, the share of ores, slag and ashes grew from 2.2% to 3.2%, and fertilizers – from 2.7% to 3%, while the share of ferrous metals products fell from 5.9% to 5.3%, the share of mechanic machinery – from 4.5% to 4.2% and the share of fats – from 3.5% to 2.9%.
Imports from Europe were 35.6% of the overall exports, including 33.7% from the European Union, from the CIS 39.2%, Asia - 17.9%, the Americas - 4.9%, Africa - 1.8% and Australia and Oceania – 0.5%.
Imports to Ukraine grew 3.4 times from Australia and Oceania, 2.3 times from Africa, by 85.8% from the Americas, by 71.2% from Asia, by 32.3% from Europe and by 31.3% from the CIS.
The largest imports supplies in 2008 were from Russia (22.7%), Germany (8.4%), Turkmenistan (6.6%), China (6.5%), Poland (5%), Kazakhstan (3.6%) and Belarus (3.3%).
Imports from Belarus grew by 94.4%, by 84.9% from Kazakhstan, by 69.4% from China, by 46.6% from Poland, from Germany by 22.9%, from Russia by 15.3% and from Turkmenistan by 19.6%.
The share of oil and fuel of overall imports grew from 26.3% to 26.7%, the share of overland vehicles, apart from railway transport, from 12.8% to 13.3%, the share of ferrous metals – from 3.7% to 3.9% and the share of ores, slag and ashes grew from 1.6% to 2.4%, while the share of mechanic machinery fell from 12.3% to 11.2%, and the share of electric equipment – from 5.2% to 4.4% and the share of plastic – from 4.4% to 4.1%.
Export of materials on a tolling basis in 2008 fell by 15.3% year-over-year, to $70.7 million. Goods produced on a tolling basis worth $72.5 million were imported to Ukraine, which is 37.4% less year-over-year.
Foreign materials worth $2.502 billion were imported on a tolling basis to Ukraine, which is 0.2% less year-over-year. Exports of goods produced on from materials imported on a tolling basis grew by 23.8%, to $4.037 billion.
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18. PRIME MINISTER WINS CRUCIAL VOTE AHEAD OF CABINET RESHUFFLE
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18. PRIME MINISTER WINS CRUCIAL VOTE AHEAD OF CABINET RESHUFFLE
BYuT Inform Newsletter, Kyiv, Ukraine, Wed, Feb 11, 2009
KYIV - The government of Prime Minister Yulia Tymoshenko has survived a vote of no-confidence by lawmakers in Ukraine’s 450-seat Verkhovna Rada (parliament). Failure of the motion prevents another challenge during this session of parliament and enhances prospects for political stability.
KYIV - The government of Prime Minister Yulia Tymoshenko has survived a vote of no-confidence by lawmakers in Ukraine’s 450-seat Verkhovna Rada (parliament). Failure of the motion prevents another challenge during this session of parliament and enhances prospects for political stability.
The vote came after the premier reported on the economy and precedes a cabinet reshuffle to be announced this week. The latter will shore up cabinet unity and provide an infusion of talent to help combat the severe economic downturn.
Last Thursday’s vote of no-confidence served only to vindicate the government of Ms Tymoshenko. The motion, put forward by the opposition Party of Regions of ex-premier Viktor Yanukovych, secured 203 votes, falling well short of the 226 needed. On closer scrutiny the number of legitimate votes for the motion was only 200 as three absent lawmakers had their cards used by other lawmakers.
A pleased Ms Tymoshenko said, "I can only say that instead of a vote of no confidence in the government, a vote of confidence in the government was passed."
Voting for the motion were 172 lawmakers from the Party of Regions, 21 from the Communist Party and 10 from the Our Ukraine-People’s Self-Defence Bloc (OU-PSD). Despite President Yushchenko’s efforts to lobby OU-PSD’s 72 lawmakers, only the loyalists of the United Centre party (the party of Viktor Baloha, Chief of the Presidential Secretariat) heeded his advice.
“It all goes to prove that the president has lost the control and respect of his faction,” said Dr Taras Kuzio, editor of Ukraine Analyst, and Adjunct Professor at Carleton University, Ottawa.
Ms Tymoshenko, although pleased with the outcome, was well aware of the political downside to remaining in office to fight the recession. She said, “None of these brave opposition members dare to head up the government and take up ministerial positions for fear of damaging their popularity ratings.” Then talking about her position: "I understand quite well that the prime minister's post is not appealing, because this is a very hard, responsible and thankless task.”
Political Stability
Last Thursday’s vote of no-confidence served only to vindicate the government of Ms Tymoshenko. The motion, put forward by the opposition Party of Regions of ex-premier Viktor Yanukovych, secured 203 votes, falling well short of the 226 needed. On closer scrutiny the number of legitimate votes for the motion was only 200 as three absent lawmakers had their cards used by other lawmakers.
A pleased Ms Tymoshenko said, "I can only say that instead of a vote of no confidence in the government, a vote of confidence in the government was passed."
Voting for the motion were 172 lawmakers from the Party of Regions, 21 from the Communist Party and 10 from the Our Ukraine-People’s Self-Defence Bloc (OU-PSD). Despite President Yushchenko’s efforts to lobby OU-PSD’s 72 lawmakers, only the loyalists of the United Centre party (the party of Viktor Baloha, Chief of the Presidential Secretariat) heeded his advice.
“It all goes to prove that the president has lost the control and respect of his faction,” said Dr Taras Kuzio, editor of Ukraine Analyst, and Adjunct Professor at Carleton University, Ottawa.
Ms Tymoshenko, although pleased with the outcome, was well aware of the political downside to remaining in office to fight the recession. She said, “None of these brave opposition members dare to head up the government and take up ministerial positions for fear of damaging their popularity ratings.” Then talking about her position: "I understand quite well that the prime minister's post is not appealing, because this is a very hard, responsible and thankless task.”
Political Stability
Only one no-confidence vote is permitted in each parliamentary session, meaning there can be no repeat vote until the autumn session. Even then, such a prospect is highly unlikely as the country will be in the throes of a presidential election campaign. This should grant Ukraine a period of relative political stability which should help the government’s anti-crisis measures to take effect.
Volodymyr Fesenko of the Penta think tank, was quoted by Reuters as saying that the vote "will allow Tymoshenko to work quietly for a time and protect her against rearguard attacks from parliament. She still faces some strategic risks, but these are linked not so much to politics as to the social and economic crisis."
Charting a Course Through the Downturn
Charting a way through the severe downturn is a daunting task. Ukraine’s economy has been battered by a dramatic drop in the demand for steel, chemicals and other commodities. Industrial production fell by 26 percent in December year-on-year. Compounding this, bank liquidity issues, a lack of foreign capital and currency woes paint a bleak picture for 2009.
GDP dropped by 14.4 percent in November 2008 and by 9.9 percent in December 2008 year-on-year. Overall, GDP growth slowed down to 2.1 percent in 2008 from 7.6 percent in 2007.
Despite this, Ms Tymoshenko’s government predicts GDP growth at 0.4 percent this year – a forecast at odds with the International Monetary Fund (IMF), which predicts a contraction of 5 percent.
Ms Tymoshenko underlined the point that negative sentiment is also driving down economic forecasts. “It is simply too easy to become reconciled to a fall. I believe Ukraine is strong, with resources and reserves and if the proper actions are taken at this difficult time, we can achieve this indicator as planned," she said.
Although inflation in 2008 was 22.3 percent, the Ministry of Finance has forecast an inflation rate of 9.5 percent in 2009, subject to movements in the hryvnia. “The forecast is based on producer price indexes which have dropped considerably,” said Ms Tymoshenko “All conditions are there for a decline in consumer prices, but we cannot achieve that unless the hryvnia/dollar rate is settled.”
The hryvnia has come under immense pressure and lost a third of its value since the summer. Frequent intervention from the National Bank of Ukraine is keeping the lid on exchange rates but at the expense of foreign currency reserves. On Friday the hryvnia closed at 7.705 to the dollar, which is an improvement over a low of nearly 10 to the dollar last December.
Cabinet Reshuffle
The government plans to step up measures to tackle the economic crisis and a cabinet reshuffle is imminent. The reshuffle will strengthen the loyalty of ministers and bring new talent into the cabinet.
“To overcome this economic crisis we must raise the level of efficiency and professionalism in the cabinet,” said Ms Tymoshenko, “we need a cabinet that is unified and pulling in the right direction. The new ministers will be announced very soon.”
Volodymyr Fesenko of the Penta think tank, was quoted by Reuters as saying that the vote "will allow Tymoshenko to work quietly for a time and protect her against rearguard attacks from parliament. She still faces some strategic risks, but these are linked not so much to politics as to the social and economic crisis."
Charting a Course Through the Downturn
Charting a way through the severe downturn is a daunting task. Ukraine’s economy has been battered by a dramatic drop in the demand for steel, chemicals and other commodities. Industrial production fell by 26 percent in December year-on-year. Compounding this, bank liquidity issues, a lack of foreign capital and currency woes paint a bleak picture for 2009.
GDP dropped by 14.4 percent in November 2008 and by 9.9 percent in December 2008 year-on-year. Overall, GDP growth slowed down to 2.1 percent in 2008 from 7.6 percent in 2007.
Despite this, Ms Tymoshenko’s government predicts GDP growth at 0.4 percent this year – a forecast at odds with the International Monetary Fund (IMF), which predicts a contraction of 5 percent.
Ms Tymoshenko underlined the point that negative sentiment is also driving down economic forecasts. “It is simply too easy to become reconciled to a fall. I believe Ukraine is strong, with resources and reserves and if the proper actions are taken at this difficult time, we can achieve this indicator as planned," she said.
Although inflation in 2008 was 22.3 percent, the Ministry of Finance has forecast an inflation rate of 9.5 percent in 2009, subject to movements in the hryvnia. “The forecast is based on producer price indexes which have dropped considerably,” said Ms Tymoshenko “All conditions are there for a decline in consumer prices, but we cannot achieve that unless the hryvnia/dollar rate is settled.”
The hryvnia has come under immense pressure and lost a third of its value since the summer. Frequent intervention from the National Bank of Ukraine is keeping the lid on exchange rates but at the expense of foreign currency reserves. On Friday the hryvnia closed at 7.705 to the dollar, which is an improvement over a low of nearly 10 to the dollar last December.
Cabinet Reshuffle
The government plans to step up measures to tackle the economic crisis and a cabinet reshuffle is imminent. The reshuffle will strengthen the loyalty of ministers and bring new talent into the cabinet.
“To overcome this economic crisis we must raise the level of efficiency and professionalism in the cabinet,” said Ms Tymoshenko, “we need a cabinet that is unified and pulling in the right direction. The new ministers will be announced very soon.”
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19. UKRAINE: WHERE REALITY HARDLY INTRUDES/
Turchinov went on to add that "using this opportunity when there is no one from outside our coalition present in this hall, with full responsibility, I declare to you that we are close to a tragedy and in a condition of military [sic] actions." These expressions have sent some analysts into a hissy-fit, screaming about an impending dictatorship.
For his part, President Viktor Yushchenko has been busy defending the single person most responsible for the deepening crisis, Wolodymyr Stelmakh, Chairman of Ukraine's central bank, the National Bank of Ukraine (NBU).
Last fall Stelmakh and the NBU provided re-financing to 97 Ukrainian banks to the tune of 40.275 billion UAH (about $6.7 billion USD at the time). Then the NBU sold $6.06 billion in US dollars to these same banks. This sent the national currency, the hryvnia, into a steep downward spiral and the hryvnia is now at about half its value compared to Western currencies from half a year ago.
In the past, endemic corruption has robbed the state treasury, but Stelmakh's machinations not only robbed the treasury, these funds were used to make the life of ordinary Ukrainians miserable by deflating their real incomes due to the drop in the hryvnia's worth.
Not surprisingly, Tymoshenko has spoken publicly and loudly of the NBU's misguided policies, accusing the Bank of channeling funds to select banks.
One outrageous example is the NUB's lending 7.1 billion UAH to Bank Nadra, which is controlled by the Ukrainian oligarch Dmytro Firtash, of RosUkrEnergo fame.
But even public exposure of Stelmakh's dealings have not shaken him from his post. Yushchenko has defended Stelmakh by mumbling on about "leaving
the NBU in peace" and "there is no tragedy here."
On January 26 parliament voted to oust Stelmakh. Yushchenko has appealed this decision to the Constitutional Court. Small wonder that Tymoshenko responded by accusing Yushchenko himself of trying to embezzle 4.55 billion UAH through the NBU's re-financing operations. Events over the past several months have left most Ukrainians wondering what planet their political leaders inhabit.
Small wonder that the most popular among a recent Internet poll of questions for President Yushchenko was: "How much do we have to pay you, esteemed Mr. President, for you and all the deputies in parliament, all the ministers and government officials to leave Ukraine forever and stop interfering with its normal development?"
ITEM B: PARTY OF REGIONS' OWN CRISIS
The country's main opposition force, Viktor Yanukovych's Party of Regions (PoR), appears to be undergoing a thus-far minor implosion.
Two top associates of Yanukovych, Serhiy Lyovochkin and Yuriy Boyko, have been accused of betraying the party's interests and, in particular, of
screwing up a February 5 vote of no confidence in Tymoshenko's government, which garnered only 203 out of the 226 votes needed.
Lyovochkin responded by accusing his opponents of preparing to "hand over" the Party or Regions to BYut and Tymoshenko.
Boyko is a participant in RosUkrEnergo and a close associate of Firtash's. This public internecine bickering is a first for the PoR and a sign of how Firtash's money has destabilized what until now has been a monolithic party held together tightly in the hands of Ukraine's richest oligarch, Rinat Akhmetov. Akhmetov's henchmen, such as Boris Kolesnikov, are leading the uprising against Lyovochkin and Boyko.
It is understandably difficult for a group such as the Party of Regions, accustomed to being in power, to spend an extended period of time out in the cold. Look for continued destabilization within the PoR. [In the following issue: after effects of the gas crisis]
THE UKRAINE INSIDER - is distributed via the Internet free of charge to all interested parties as a source of in-depth information on political events
in Ukraine, including behind-the-scenes coverage of significant current issues, the positions of policy-makers, tactics and strategy information on Ukraine's ongoing struggle toward a free and democratic society. Correspondence should be addressed via the Internet to: lozowy@i.com.ua
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19. UKRAINE: WHERE REALITY HARDLY INTRUDES/
PARTY OF REGION'S OWN CRISIS
Analysis & Commentary: By Ivan Lozowy, The Ukraine Insider
Vol. 9, No. 1, Kyiv, Ukraine, Thursday, February 12, 2009
ITEM A.: WHERE REALITY HARDLY INTRUDES
Ukraine's economic crisis is moving from bad to worse quickly and is set to deepen seriously during the coming 3-6 months.
Because of falling GDP the government has been casting about wildly for additional sources of revenue. The ranks of the unemployed have swelled to
2 million people, government employees have had their salaries cut to the bone and students are not receiving their miserly government subsidies.
Misguided government initiatives aimed at raising revenues have backfired and within two months Prime Minister Yulia Tymoshenko has provoked three
strikes, by truckers, small individual entrepreneurs and automobile owners. At first Tymoshenko dismissed the automobile strikers as an insignificant
group of malcontents. But as the number of strikers and cities encompassed by the strike spread quickly, Tymoshenko did an about-face and acceded to
most of their demands.
Tymoshenko's political base, the Block of Yulia Tymoshenko (ByuT) has trumpeted Ukraine's readiness to receive the next tranche of a $16.4 billion dollar loan from the IMF. The reality, however, is that the IMF has been shocked by the sad state of Ukraine's finances and the next tranche is simply not on its way.
Worst of all, the widespread practice of taking in taxes in advance has been stretched to its limits. Companies across Ukraine have bowed to requests by their local tax service to pay advances through March. But these companies are now off the hook at least until March and will spend the meantime hiding their profits very carefully.
All this means that for the coming two months, as the economy gets much worse, the government has practically no recourse for raising revenues. Small wonder that Tymoshenko has gone to the extraordinary and humiliating lengths of asking Russia for a $5 billion dollar loan.
In desperation Tymoshenko's government has now also turned to privatization, but this avenue is fraught with risks since current prices for such state giants as the land-line monopolist Ukrtelecom are low and falling.
Tymoshenko's own Minister of Finance, Viktor Pynzenyk, refused to sign the 2009 state budget proposal, which was wildly unrealistic. This budget foresaw just over 9% annual inflation for 2009, whereas the inflation rate for January alone was close to 3%.
Pynzenyk, who wrote a memo on January 6 to Tymoshenko forecasting disaster, including calling an estimated GDP drop in 2009 of 5% as "overly optimistic," has now submitted his resignation. True to form, Tymoshenko is in denial and publicly claims the crisis will recede by May.
Meantime, Tymoshenko's right-hand man, Vice Prime Minister Oleksandr Turchinov, has let the cat out of the bag. Participating in a meeting of the country's top police officials on February 6 Turchinov said that the current "chaos" is "impossible to stop without strong state power."
ITEM A.: WHERE REALITY HARDLY INTRUDES
Ukraine's economic crisis is moving from bad to worse quickly and is set to deepen seriously during the coming 3-6 months.
Because of falling GDP the government has been casting about wildly for additional sources of revenue. The ranks of the unemployed have swelled to
2 million people, government employees have had their salaries cut to the bone and students are not receiving their miserly government subsidies.
Misguided government initiatives aimed at raising revenues have backfired and within two months Prime Minister Yulia Tymoshenko has provoked three
strikes, by truckers, small individual entrepreneurs and automobile owners. At first Tymoshenko dismissed the automobile strikers as an insignificant
group of malcontents. But as the number of strikers and cities encompassed by the strike spread quickly, Tymoshenko did an about-face and acceded to
most of their demands.
Tymoshenko's political base, the Block of Yulia Tymoshenko (ByuT) has trumpeted Ukraine's readiness to receive the next tranche of a $16.4 billion dollar loan from the IMF. The reality, however, is that the IMF has been shocked by the sad state of Ukraine's finances and the next tranche is simply not on its way.
Worst of all, the widespread practice of taking in taxes in advance has been stretched to its limits. Companies across Ukraine have bowed to requests by their local tax service to pay advances through March. But these companies are now off the hook at least until March and will spend the meantime hiding their profits very carefully.
All this means that for the coming two months, as the economy gets much worse, the government has practically no recourse for raising revenues. Small wonder that Tymoshenko has gone to the extraordinary and humiliating lengths of asking Russia for a $5 billion dollar loan.
In desperation Tymoshenko's government has now also turned to privatization, but this avenue is fraught with risks since current prices for such state giants as the land-line monopolist Ukrtelecom are low and falling.
Tymoshenko's own Minister of Finance, Viktor Pynzenyk, refused to sign the 2009 state budget proposal, which was wildly unrealistic. This budget foresaw just over 9% annual inflation for 2009, whereas the inflation rate for January alone was close to 3%.
Pynzenyk, who wrote a memo on January 6 to Tymoshenko forecasting disaster, including calling an estimated GDP drop in 2009 of 5% as "overly optimistic," has now submitted his resignation. True to form, Tymoshenko is in denial and publicly claims the crisis will recede by May.
Meantime, Tymoshenko's right-hand man, Vice Prime Minister Oleksandr Turchinov, has let the cat out of the bag. Participating in a meeting of the country's top police officials on February 6 Turchinov said that the current "chaos" is "impossible to stop without strong state power."
Turchinov went on to add that "using this opportunity when there is no one from outside our coalition present in this hall, with full responsibility, I declare to you that we are close to a tragedy and in a condition of military [sic] actions." These expressions have sent some analysts into a hissy-fit, screaming about an impending dictatorship.
For his part, President Viktor Yushchenko has been busy defending the single person most responsible for the deepening crisis, Wolodymyr Stelmakh, Chairman of Ukraine's central bank, the National Bank of Ukraine (NBU).
Last fall Stelmakh and the NBU provided re-financing to 97 Ukrainian banks to the tune of 40.275 billion UAH (about $6.7 billion USD at the time). Then the NBU sold $6.06 billion in US dollars to these same banks. This sent the national currency, the hryvnia, into a steep downward spiral and the hryvnia is now at about half its value compared to Western currencies from half a year ago.
In the past, endemic corruption has robbed the state treasury, but Stelmakh's machinations not only robbed the treasury, these funds were used to make the life of ordinary Ukrainians miserable by deflating their real incomes due to the drop in the hryvnia's worth.
Not surprisingly, Tymoshenko has spoken publicly and loudly of the NBU's misguided policies, accusing the Bank of channeling funds to select banks.
One outrageous example is the NUB's lending 7.1 billion UAH to Bank Nadra, which is controlled by the Ukrainian oligarch Dmytro Firtash, of RosUkrEnergo fame.
But even public exposure of Stelmakh's dealings have not shaken him from his post. Yushchenko has defended Stelmakh by mumbling on about "leaving
the NBU in peace" and "there is no tragedy here."
On January 26 parliament voted to oust Stelmakh. Yushchenko has appealed this decision to the Constitutional Court. Small wonder that Tymoshenko responded by accusing Yushchenko himself of trying to embezzle 4.55 billion UAH through the NBU's re-financing operations. Events over the past several months have left most Ukrainians wondering what planet their political leaders inhabit.
Small wonder that the most popular among a recent Internet poll of questions for President Yushchenko was: "How much do we have to pay you, esteemed Mr. President, for you and all the deputies in parliament, all the ministers and government officials to leave Ukraine forever and stop interfering with its normal development?"
ITEM B: PARTY OF REGIONS' OWN CRISIS
The country's main opposition force, Viktor Yanukovych's Party of Regions (PoR), appears to be undergoing a thus-far minor implosion.
Two top associates of Yanukovych, Serhiy Lyovochkin and Yuriy Boyko, have been accused of betraying the party's interests and, in particular, of
screwing up a February 5 vote of no confidence in Tymoshenko's government, which garnered only 203 out of the 226 votes needed.
Lyovochkin responded by accusing his opponents of preparing to "hand over" the Party or Regions to BYut and Tymoshenko.
Boyko is a participant in RosUkrEnergo and a close associate of Firtash's. This public internecine bickering is a first for the PoR and a sign of how Firtash's money has destabilized what until now has been a monolithic party held together tightly in the hands of Ukraine's richest oligarch, Rinat Akhmetov. Akhmetov's henchmen, such as Boris Kolesnikov, are leading the uprising against Lyovochkin and Boyko.
It is understandably difficult for a group such as the Party of Regions, accustomed to being in power, to spend an extended period of time out in the cold. Look for continued destabilization within the PoR. [In the following issue: after effects of the gas crisis]
THE UKRAINE INSIDER - is distributed via the Internet free of charge to all interested parties as a source of in-depth information on political events
in Ukraine, including behind-the-scenes coverage of significant current issues, the positions of policy-makers, tactics and strategy information on Ukraine's ongoing struggle toward a free and democratic society. Correspondence should be addressed via the Internet to: lozowy@i.com.ua
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20. PARLIAMENT PROLONGED THE LAND SALE MORATORIUM FOR ONE MORE YEAR
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20. PARLIAMENT PROLONGED THE LAND SALE MORATORIUM FOR ONE MORE YEAR
UkrAgroConsult, Kyiv, Ukraine, Thu, February 12, 2009
KYIV - Today the Parliament once again prolonged the moratorium on agricultural land sale till January 1, 2010. 399 parliamentarians approved the law #3353 while at least 226 votes were needed. As reported before, Yushchenko vetoed on January 14 the law passed by Parliament that had prolonged the
moratorium on agricultural land sale till January 1, 2010. On December 23, 2008, Parliament prolonged the moratorium on agricultural land sales till
January 1, 2010.
The Parliament refused to take into account Yushchenko’s proposal about excluding from the draft law the provision about prolonging the agricultural
land sale moratorium until January 1, 2010. At the same time, Parliament allowed the Agrarian Fund to market the grain and oilcrops stocks if prices
are favorable. Also, Parliament agreed to exclude a provision from the Y2009 State Budget about granting a state loan to the Agrarian Fund for
purchase of surplus sunseed not sold in the domestic market in 2007-2008.
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21. USDA RAISES UKRAINIAN GRAIN EXPORT TARGET FOR
21. USDA RAISES UKRAINIAN GRAIN EXPORT TARGET FOR
'08/'09 MARKETING YEAR TO 19.1 M TONNES
Interfax Ukraine, Kyiv, Ukraine, Thu, February 12, 2009
KYIV - The United States Department of Agriculture (USDA) has revised upwards its projections for Ukrainian grain exports in the 2008/2009 marketing year from 18.1 million tonnes to 19.1 million tonnes.
According to a USDA report, wheat exports were boosted from 9 million tonnes to 9.5 million tonnes, while that for maize – from 3.5 million tonnes to 4 million tonnes.
The U.S. agricultural analysts increased the evaluation of the harvest in Ukraine last year by 2.14 million tonnes, to 52.12 million tonnes, including a rise of 400,000 tonnes for wheat, to 25.9 million tonnes, and a rise of 1.4 million tonnes for maize, to 11.4 million tonnes.
The analysts said that the increase in wheat exports would be linked with a cut in ending stocks from 4.13 million tonnes to 3.63 million tonnes, while maize stocks would grow from 1.34 million tonnes to 2.04 million tonnes.
The USDA said that in 2007, the wheat harvest in Ukraine was 13.9 million tonnes, and exports in the 2007/2008 marketing year were 1.24 million tonnes. The gross course grain harvest was estimated at 14.59 million tonnes, while exports were at 3.15 million tonnes, including for maize – 7.4 million tonnes and 2.07 million tonnes respectively.
The USDA said that ending wheat stocks at the start of the current marketing year were 1.53 million tonnes, and those for coarse grain – 1.46 million tonnes, including 720,000 tonnes of maize.
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22. THE BLOOM IS OFF EUROPE'S ROSE AND ORANGE REVOLUTIONS
By Tom Lasseter, McClatchy Newspapers, Wash, D.C., February 12, 2009
TBILISI, Georgia — Some four years ago, as he stood before a cheering crowd of tens of thousands, former President George W. Bush declared that Georgia's pro-western government was "inspiring democratic reformers . . . across the world."
Georgia's ouster of its Russian-linked leadership in the 2003 Rose Revolution and the following year's U.S.-backed Orange Revolution in Ukraine had sent a message that "freedom will be the future of every nation," Bush said.
Today, though, the governments of Georgia and Ukraine are unraveling — symbols not of freedom but, to a large extent, of U.S. foreign policy errors, tarnished American allies and an emboldened Russia that's capitalized on its rivals' weaknesses.
The diplomatic complications for President Barack Obama over Russia and its neighbors go beyond these two countries in Moscow's backyard. Earlier this month, Russia flexed its muscle in another "rainbow revolution" country, Kyrgyzstan, where democratic reform had never fully taken root.
Russia offered the central Asian country more than $2 billion in loans and aid. Almost immediately, the Kyrgyz president announced, in Moscow, that he plans to close a major U.S. air base in his country that's critical to the U.S. mission in Afghanistan.
Ukraine and Georgia have significant differences — for starters, Ukraine has a population of about 46 million, and Georgia only about a tenth of that — but like Kyrgyzstan, they've been part of the Kremlin's campaign to reduce U.S. influence in what Russian officials call their "near abroad."
Many officials and analysts in the two countries say the Bush administration made the crucial mistake of continuing to fully, and very publicly, back their presidents — Mikheil Saakashvili in Georgia and Viktor Yushchenko in Ukraine — long after it was apparent that they'd lost their way.
By not establishing stronger relationships with rival politicians in Kiev and Tbilisi, those observers said, Bush committed the U.S. to the two men, and their shortcomings, rather than to broad-based democratic reform.
In Georgia, a growing front of opposition officials, which includes former leaders of Saakashvili's government, say that misstep empowered an increasingly authoritarian regime and in the end helped Russia.
"We tried to explain to our American and Western partners that what Saakashvili is doing here, ruling with autocratic tools, it will soon cause mass protests," Kakha Kukava, an opposition leader in Tbilisi, said in a recent interview. No one in the Bush White House, he said, was interested.
In Ukraine, some opposition and former officials say the Bush administration's support for the country's application to join NATO, a key Yushchenko initiative that, like Bush, was widely unpopular in the south and east, only further unraveled the government.
"In Ukraine it backfired," said Oleg Rybachuk, a former chief of staff to Yushchenko. "All critics of Bush, they positioned Yushchenko as a clear puppet of Bush — (as having an) aggressive, pro-NATO policy."
Kukava and Rybachuk emphasized that, like many critics of their presidents, they want democracy and agree on the importance of checking Russian power.
Russian Prime Minister Vladimir Putin has made it clear that he dislikes Saakashvili and Yushchenko and considers them U.S.-backed interlopers in Russia's "privileged" sphere of influence.
Once in office, Saakashvili made progress fighting corruption and jump-starting the nation's economy, but he also cracked down on civil liberties and began consolidating power. During November 2007, Saakashvili declared a state of emergency after sending Georgian troops to violently disburse protests in Tbilisi, which government officials say were sparked by Russia.
After Saakashvili launched an offensive last August against the breakaway Georgian republic of South Ossetia, lured in part by Russian provocations, Russia invaded Georgia and established de facto control of both South Ossetia and another rebel province. Amid the upheaval, Saakashvili's government recently nominated its fifth prime minister in five years.
In a report last month, Freedom House, an independent U.S. organization that promotes democracy, said it had removed Georgia from its list of electoral democracies. The country that once "represented one of the few bright spots in the former Soviet Union" has taken an "erratic course," that "ranks among the more disturbing developments of the past two years," the report said.
The news also is bad from Ukraine. President Yushchenko's approval rating is in the single digits, and he lost almost all voter support during a series of feuds with his prime minister and one-time ally, Prime Minister Yulia Tymoshenko. Before a crippling economic crisis hit, the government was headed for its third parliamentary election in as many years in late 2008.
Soon after, Russia shut off gas supplies to Ukraine in January. The contract later signed requires Ukraine to pay market prices after decades of subsidies — a move almost certain to weaken the economy further.
Last week, Tymoshenko said that her country was shopping for loans to shore up its budget. Russian and Ukrainian media reported that Moscow has offered some $5 billion, with conditions not yet made public. One Russian state TV station headlined the story: "Ukraine gets out the begging bowl."
Yushchenko's political ineptness has paved the way for Russia's candidate in 2004, Viktor Yanukovich, to be a leading contender for the presidency again. Still, many Ukrainians don't blame Russia and its propaganda campaign against Yushchenko for his undoing.
"Of course, the Russians were doing their best to discredit the president as the personification of the Orange Revolution, as the personification of democratic values," said Boris Tarasuk, a senior member of Yushchenko's coalition and former foreign minister.
Having said so, Tarasuk conceded that most of Yushchenko's problems emanate from his confrontations with the prime minister. "He happened to be the victim of his own mistakes," Tarasuk said. Added one Western diplomat in Kiev: The Kremlin "probably enjoyed watching."
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22. THE BLOOM IS OFF EUROPE'S ROSE AND ORANGE REVOLUTIONS
By Tom Lasseter, McClatchy Newspapers, Wash, D.C., February 12, 2009
TBILISI, Georgia — Some four years ago, as he stood before a cheering crowd of tens of thousands, former President George W. Bush declared that Georgia's pro-western government was "inspiring democratic reformers . . . across the world."
Georgia's ouster of its Russian-linked leadership in the 2003 Rose Revolution and the following year's U.S.-backed Orange Revolution in Ukraine had sent a message that "freedom will be the future of every nation," Bush said.
Today, though, the governments of Georgia and Ukraine are unraveling — symbols not of freedom but, to a large extent, of U.S. foreign policy errors, tarnished American allies and an emboldened Russia that's capitalized on its rivals' weaknesses.
The diplomatic complications for President Barack Obama over Russia and its neighbors go beyond these two countries in Moscow's backyard. Earlier this month, Russia flexed its muscle in another "rainbow revolution" country, Kyrgyzstan, where democratic reform had never fully taken root.
Russia offered the central Asian country more than $2 billion in loans and aid. Almost immediately, the Kyrgyz president announced, in Moscow, that he plans to close a major U.S. air base in his country that's critical to the U.S. mission in Afghanistan.
Ukraine and Georgia have significant differences — for starters, Ukraine has a population of about 46 million, and Georgia only about a tenth of that — but like Kyrgyzstan, they've been part of the Kremlin's campaign to reduce U.S. influence in what Russian officials call their "near abroad."
Many officials and analysts in the two countries say the Bush administration made the crucial mistake of continuing to fully, and very publicly, back their presidents — Mikheil Saakashvili in Georgia and Viktor Yushchenko in Ukraine — long after it was apparent that they'd lost their way.
By not establishing stronger relationships with rival politicians in Kiev and Tbilisi, those observers said, Bush committed the U.S. to the two men, and their shortcomings, rather than to broad-based democratic reform.
In Georgia, a growing front of opposition officials, which includes former leaders of Saakashvili's government, say that misstep empowered an increasingly authoritarian regime and in the end helped Russia.
"We tried to explain to our American and Western partners that what Saakashvili is doing here, ruling with autocratic tools, it will soon cause mass protests," Kakha Kukava, an opposition leader in Tbilisi, said in a recent interview. No one in the Bush White House, he said, was interested.
In Ukraine, some opposition and former officials say the Bush administration's support for the country's application to join NATO, a key Yushchenko initiative that, like Bush, was widely unpopular in the south and east, only further unraveled the government.
"In Ukraine it backfired," said Oleg Rybachuk, a former chief of staff to Yushchenko. "All critics of Bush, they positioned Yushchenko as a clear puppet of Bush — (as having an) aggressive, pro-NATO policy."
Kukava and Rybachuk emphasized that, like many critics of their presidents, they want democracy and agree on the importance of checking Russian power.
Russian Prime Minister Vladimir Putin has made it clear that he dislikes Saakashvili and Yushchenko and considers them U.S.-backed interlopers in Russia's "privileged" sphere of influence.
Putin didn't deny reports that he threatened to string Saakashvili up by the testicles. Asked on national TV recently if he said he wanted to hang the Georgian president by a certain part, Putin replied, "Why by one?"
Under Putin's leadership, the Kremlin has taken advantage of Saakashvili's and Yushchenko's mistakes at every turn.
Once in office, Saakashvili made progress fighting corruption and jump-starting the nation's economy, but he also cracked down on civil liberties and began consolidating power. During November 2007, Saakashvili declared a state of emergency after sending Georgian troops to violently disburse protests in Tbilisi, which government officials say were sparked by Russia.
After Saakashvili launched an offensive last August against the breakaway Georgian republic of South Ossetia, lured in part by Russian provocations, Russia invaded Georgia and established de facto control of both South Ossetia and another rebel province. Amid the upheaval, Saakashvili's government recently nominated its fifth prime minister in five years.
In a report last month, Freedom House, an independent U.S. organization that promotes democracy, said it had removed Georgia from its list of electoral democracies. The country that once "represented one of the few bright spots in the former Soviet Union" has taken an "erratic course," that "ranks among the more disturbing developments of the past two years," the report said.
The news also is bad from Ukraine. President Yushchenko's approval rating is in the single digits, and he lost almost all voter support during a series of feuds with his prime minister and one-time ally, Prime Minister Yulia Tymoshenko. Before a crippling economic crisis hit, the government was headed for its third parliamentary election in as many years in late 2008.
Soon after, Russia shut off gas supplies to Ukraine in January. The contract later signed requires Ukraine to pay market prices after decades of subsidies — a move almost certain to weaken the economy further.
Last week, Tymoshenko said that her country was shopping for loans to shore up its budget. Russian and Ukrainian media reported that Moscow has offered some $5 billion, with conditions not yet made public. One Russian state TV station headlined the story: "Ukraine gets out the begging bowl."
Yushchenko's political ineptness has paved the way for Russia's candidate in 2004, Viktor Yanukovich, to be a leading contender for the presidency again. Still, many Ukrainians don't blame Russia and its propaganda campaign against Yushchenko for his undoing.
"Of course, the Russians were doing their best to discredit the president as the personification of the Orange Revolution, as the personification of democratic values," said Boris Tarasuk, a senior member of Yushchenko's coalition and former foreign minister.
Having said so, Tarasuk conceded that most of Yushchenko's problems emanate from his confrontations with the prime minister. "He happened to be the victim of his own mistakes," Tarasuk said. Added one Western diplomat in Kiev: The Kremlin "probably enjoyed watching."
LINK: http://www.mcclatchydc.com/100/story/62078.html
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U.S.-Ukraine Business Council (USUBC): http://www.usubc.org
Promoting U.S.-Ukraine business investments since 1995.
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23. OUR NEW RUSSIAN OPPORTUNITY
True to his word, President Obama has launched a new era in American foreign policy. Signals from the U.S. have been positive and encouraging. Henry Kissinger quietly visited Moscow in December. Vice President Joseph Biden spoke optimistically about cooperating with Russia at the international security conference in Munich.
Moscow has welcomed this change, but has taken a wait-and-see attitude. Moscow responded by canceling plans to deploy missiles in Kaliningrad in exchange for slowdown of the missile defense shield deployment in Eastern Europe. However, foreign minister Sergei Lavrov snubbed Hilary Clinton's phone call a few weeks ago; he was busy traveling with President Medvedev in Central Asia.
Unfortunately, Mr. Yushchenko has confused Ukrainian patriotism for an anti-Russian policy, which fit perfectly into the Bush administration's containment policy towards Russia. It is true that Moscow has used its natural energy resources as a political lever.
But preventing neighbors from joining military alliances hardly constitutes imperialism or bullying. Moreover, Russia has never objected to Ukraine's participation in the EU, the OECD, or any other non-military western institution. Mr. Saakashvili was also a Washington favorite for NATO membership.
Meanwhile, the gas dispute has played into Ms. Timoshenko's hands. Her shuttle diplomacy with Moscow has given her the appearance of a savior in the eyes of the Ukrainians and the Europeans. As long as Mr. Yushchenko tried to square Ukraine's geopolitical circle by "bringing the country into the West" via NATO--instead of via a functional and solvent economy--the gas problem persisted.
Washington would do better to throw its support behind Ms. Timoshenko. She has used the gas dispute to position herself as a Ukrainian patriot, a European-minded politician, and someone able to negotiate with Moscow. She has eclipsed President Yushchenko and has come out the winner in Ukrainian politics for 2009.
This spring offers President Obama and Secretary of State Clinton a chance to restore Washington's relationship with Russia by supporting more reliable politicians in Georgia and Ukraine. Ms. Timoshenko is a tough negotiator, but she does not equate Ukrainian interests with anti-Russian policies that create more problems than they solve. With plans to increase U.S. involvement in Afghanistan, the White House and the State Department would do well to restore cooperation with Moscow.
COMMENTARY & ANALYSIS, By Anton Fedyashin
Assistant Professor of Russian History at American University.
The Washington Post, Washington, D.C., Wed, February 11, 2009
True to his word, President Obama has launched a new era in American foreign policy. Signals from the U.S. have been positive and encouraging. Henry Kissinger quietly visited Moscow in December. Vice President Joseph Biden spoke optimistically about cooperating with Russia at the international security conference in Munich.
In his first press conference, the President mentioned non-proliferation negotiations and Russia's role in preventing other regimes in acquiring nuclear capability. Secretary of State Hillary Clinton plans to visit Moscow in March to lay the groundwork for reestablishing the U.S.-Russia partnership. And finally, President Obama and President Medvedev will meet at the G-20 summit in April. There is a veritable thaw in the air and spring looks promising.
Moscow has welcomed this change, but has taken a wait-and-see attitude. Moscow responded by canceling plans to deploy missiles in Kaliningrad in exchange for slowdown of the missile defense shield deployment in Eastern Europe. However, foreign minister Sergei Lavrov snubbed Hilary Clinton's phone call a few weeks ago; he was busy traveling with President Medvedev in Central Asia.
The Russians are expanding their influence in this region by offering Kyrgyzstan financial support. Meanwhile, Moscow has opened its airspace for the U.S. to fly non-military supplies to Afghanistan. Given the emphasis that President Obama has placed on the military operation there, Russia's cooperation will become increasingly important. Where should the State Department start to repair its relationship with its Eurasian ally? It will have to reevaluate its policy towards Russia's neighbors.
Moscow has historically been very sensitive to its borderlands. Over the past millennium, Russia's geopolitical interests have changed at a much slower rate than her governments. The Bush administration targeted its two soft spots: the western borders and the "soft underbelly" in the Caucasus. Since 2003, the White House placed its bets on Georgian President Mikhail Saakashvili and Ukrainian President Viktor Yushchenko at the expense of its relationship with Moscow.
Moscow has historically been very sensitive to its borderlands. Over the past millennium, Russia's geopolitical interests have changed at a much slower rate than her governments. The Bush administration targeted its two soft spots: the western borders and the "soft underbelly" in the Caucasus. Since 2003, the White House placed its bets on Georgian President Mikhail Saakashvili and Ukrainian President Viktor Yushchenko at the expense of its relationship with Moscow.
However, last summer's war with Georgia and the recent gas dispute between Moscow and Kiev have demonstrated how much more complicated the situation has become. It is not the black-and-white picture that the U.S. media paints of Russia's relations with its neighbors. Saakashvili and Yushchenko have proved to be not only embarrassments, but liabilities. The Obama administration now has the chance to choose better partners in the region.
WEAKNESS OF UKRAINE'S POLITICAL SYSTEM
The recent gas dispute has demonstrated the weakness of Ukraine's political system. President Yushchenko has repeatedly threatened to ignore the gas deal that Ukrainian Prime Minister Yulia Timoshenko negotiated with Russian Prime Minister Vladimir Putin in mid-January.
The recent gas dispute has demonstrated the weakness of Ukraine's political system. President Yushchenko has repeatedly threatened to ignore the gas deal that Ukrainian Prime Minister Yulia Timoshenko negotiated with Russian Prime Minister Vladimir Putin in mid-January.
Now it is likely that Moscow will loan Kiev money to weather the financial crisis. The political and international dimensions of the row between Moscow and Kiev provided valuable insight into the Ukrainian presidential campaign that kicks off this year.
Hailed by the Bush administration as a reformer and patriot, President Yushchenko went out of his way to lay all the responsibility for the gas dispute at Russia's doorstep, which was a bit too hasty. Ukraine's economy has been sliding towards catastrophe and the gas predicament was the latest installment in the standoff between Yushchenko and Timoshenko.
The Ukrainian state gas company Naftogaz and the murky intermediary RosUkrEnergo threw their weight behind different parties. Although some see this as the natural birth-pangs of democracy, it has proven a dangerous handicap during the global financial crisis and an embarrassment to the Bush administration even in its last days. At times, neither Moscow nor the EU knew which of the two leaders spoke for Ukraine.
Unfortunately, Mr. Yushchenko has confused Ukrainian patriotism for an anti-Russian policy, which fit perfectly into the Bush administration's containment policy towards Russia. It is true that Moscow has used its natural energy resources as a political lever.
However, since Russia has subsidized Ukraine's economy by selling it gas below market prices, it was well within its rights to expect cooperation in return. Unfortunately, President Yushchenko has equated "westernization" with NATO membership, which the Bush administration encouraged and Moscow opposed.
But preventing neighbors from joining military alliances hardly constitutes imperialism or bullying. Moreover, Russia has never objected to Ukraine's participation in the EU, the OECD, or any other non-military western institution. Mr. Saakashvili was also a Washington favorite for NATO membership.
But his luck ran out when he recklessly attacked a breakaway region with internationally-approved Russian peacekeepers in it. It suits Moscow well that Georgia has two territories in what promises to be endless purgatory, because NATO will not accept a country without full territorial integrity.
Meanwhile, the gas dispute has played into Ms. Timoshenko's hands. Her shuttle diplomacy with Moscow has given her the appearance of a savior in the eyes of the Ukrainians and the Europeans. As long as Mr. Yushchenko tried to square Ukraine's geopolitical circle by "bringing the country into the West" via NATO--instead of via a functional and solvent economy--the gas problem persisted.
Russia is willing to cooperate with a Ukraine integrated into European political and economic structures, but not with a government disdainful of its benefactor's geopolitical interests. By suspending its unequivocal support for Ukrainian (and Georgian) membership in NATO, the Obama administration will gain a more cooperative Russian ally.
Washington would do better to throw its support behind Ms. Timoshenko. She has used the gas dispute to position herself as a Ukrainian patriot, a European-minded politician, and someone able to negotiate with Moscow. She has eclipsed President Yushchenko and has come out the winner in Ukrainian politics for 2009.
In addition to ensuring gas supplies to her western neighbors, she has, no doubt, also negotiated support for herself in the form of Moscow's non-interference in Ukraine's presidential race, which Russia tried to influence in 2004.
This leaves Moscow's protégé Mr. Yanukovich out in the cold this time around. In exchange, Ms. Timoshenko will most likely soften her stance on Ukraine's bid to join NATO and restore a stable and lucrative relationship with Russia. Indeed, she has already negotiating the Russian loan. The end of the gas crisis signals the beginning of the Ukrainian presidential campaign in which Ms. Timoshenko has a head start. One only hopes that Georgia will also produce as practical a politician.
This spring offers President Obama and Secretary of State Clinton a chance to restore Washington's relationship with Russia by supporting more reliable politicians in Georgia and Ukraine. Ms. Timoshenko is a tough negotiator, but she does not equate Ukrainian interests with anti-Russian policies that create more problems than they solve. With plans to increase U.S. involvement in Afghanistan, the White House and the State Department would do well to restore cooperation with Moscow.
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24. WHILE GLOBAL MARKETS CONTRACT, SIGMABLEYZER FINDS VALUE
IN KAZAKHSTAN AND ACQUIRES FIRST KAZAKH COMPANY - "ASEM-AI"
As a manager of a family of private equity funds currently investing in Ukraine, Romania, Bulgaria and Kazakhstan, SigmaBleyzer utilizes a hybrid investment approach developed specifically for emerging markets and focused on simultaneous value creation at the micro or enterprise level and at the macro level.
With offices in Kyiv and Kharkiv (Ukraine); Sofia (Bulgaria), Bucharest (Romania), Astana and Almaty (Kazakhstan), and a back office in Houston, Texas, SigmaBleyzer has the infrastructure in its countries of operation to successfully manage portfolio companies to help them reach their full potential, while creating value for the investors, shareholders, employees and other stakeholders. [www.SigmaBleyzer.com]
IN KAZAKHSTAN AND ACQUIRES FIRST KAZAKH COMPANY - "ASEM-AI"
SigmaBleyzer, Astana, Kazakhstan, Tuesday, September 23, 2008
ASTANA, Kazakhstan - SigmaBleyzer, a multinational private equity firm operating in the region, has acquired a controlling share of Asem-Ai bottled water company through SigmaBleyzer’s SBV V Kazakhstan investment vehicle. The investment includes a large capital infusion for market expansion and new facilities.
Asem-Ai has bottled mineral water for 11 years and is one of the leading companies in mineral and table water market in Kazakhstan. The founder of Asem Ai Mukhtar Kochkarov will maintain partial ownership and will continue to manage the company.
“We are very pleased to make this investment in a high quality company like Asem Ai. We value our partnership with Mr. Mukhtar Kochkarov, who created and built a very attractive business with strong potential for growth, and look forward to working with him as we take Asem Ai to the next level. We are also very excited about making our first investment in Kazakhstan, a new market for us, but the one we view as highly attractive even in this challenging times of the global financial crisis. We will continue to look for attractive opportunities to expand our investments in Kazakhstan” said Michael Bleyzer, President and CEO of SigmaBleyzer
SBV V closed in December, 2007, was oversubscribed and had a final closing of euro150 Million. In addition, SigmaBleyzer has four previous funds including SBF IV and the Ukrainian Growth Funds. Investors include large multi-national institutions, family offices and high net-worth individuals from around the world.
ABOUT SIGMABLEYZER
Operating in the region for over a decade, SigmaBleyzer is one of the largest and most experienced private equity investors in Eastern Europe. With the strength of the company’s local infrastructure, western-style management and knowledge of local markets, SigmaBleyzer has created one of the best investment management companies in the region. SigmaBleyzer manages funds and special purpose investment vehicles with $1 billion in assets under management and has made investments in 100 companies in Eastern Europe since 1994.
ASTANA, Kazakhstan - SigmaBleyzer, a multinational private equity firm operating in the region, has acquired a controlling share of Asem-Ai bottled water company through SigmaBleyzer’s SBV V Kazakhstan investment vehicle. The investment includes a large capital infusion for market expansion and new facilities.
Asem-Ai has bottled mineral water for 11 years and is one of the leading companies in mineral and table water market in Kazakhstan. The founder of Asem Ai Mukhtar Kochkarov will maintain partial ownership and will continue to manage the company.
“We are very pleased to make this investment in a high quality company like Asem Ai. We value our partnership with Mr. Mukhtar Kochkarov, who created and built a very attractive business with strong potential for growth, and look forward to working with him as we take Asem Ai to the next level. We are also very excited about making our first investment in Kazakhstan, a new market for us, but the one we view as highly attractive even in this challenging times of the global financial crisis. We will continue to look for attractive opportunities to expand our investments in Kazakhstan” said Michael Bleyzer, President and CEO of SigmaBleyzer
SBV V closed in December, 2007, was oversubscribed and had a final closing of euro150 Million. In addition, SigmaBleyzer has four previous funds including SBF IV and the Ukrainian Growth Funds. Investors include large multi-national institutions, family offices and high net-worth individuals from around the world.
ABOUT SIGMABLEYZER
Operating in the region for over a decade, SigmaBleyzer is one of the largest and most experienced private equity investors in Eastern Europe. With the strength of the company’s local infrastructure, western-style management and knowledge of local markets, SigmaBleyzer has created one of the best investment management companies in the region. SigmaBleyzer manages funds and special purpose investment vehicles with $1 billion in assets under management and has made investments in 100 companies in Eastern Europe since 1994.
As a manager of a family of private equity funds currently investing in Ukraine, Romania, Bulgaria and Kazakhstan, SigmaBleyzer utilizes a hybrid investment approach developed specifically for emerging markets and focused on simultaneous value creation at the micro or enterprise level and at the macro level.
Because of this unique approach and strong on-the-ground presence in a region where many of its investors could not have invested directly, SigmaBleyzer brings one of the most attractive pipelines of investment opportunities found anywhere to its client base.
With offices in Kyiv and Kharkiv (Ukraine); Sofia (Bulgaria), Bucharest (Romania), Astana and Almaty (Kazakhstan), and a back office in Houston, Texas, SigmaBleyzer has the infrastructure in its countries of operation to successfully manage portfolio companies to help them reach their full potential, while creating value for the investors, shareholders, employees and other stakeholders. [www.SigmaBleyzer.com]
NOTE: SigmaBleyzer is a member of the U.S.-Ukraine Business Council (USUBC) and the U.S.-Kazakhstan Business Association (USKBA).
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25. UKRAINIAN CUSTOMS AUTHORITIES ISSUED NEW CLARIFICATION
REGARDING IMPORT DUTY EXEMPTION FOR FOREIGN INVESTMENTS
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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25. UKRAINIAN CUSTOMS AUTHORITIES ISSUED NEW CLARIFICATION
REGARDING IMPORT DUTY EXEMPTION FOR FOREIGN INVESTMENTS
DLA Piper Ukraine law firm, Kyiv, Ukraine, Wed, Feb 4, 2009
KYIV - As you might know under the effective Ukrainian law any assets imported into Ukraine and invested by a foreign investor in the charter capital of Ukrainian enterprise (except assets that are intended for sale or consumption) are exempted from the customs duty. However, if the enterprise sells or otherwise alienates these assets within three years, the customs duty exemption is reversed.
On 20 January 2009 the State Customs Service of Ukraine ("SCSU") has issued a Generalizing Tax Clarification No. 31 ("Clarification No. 31") which
illustrates a new fiscal approach towards the customs duty exemption for foreign investments.
The SCSU believes that alienation of shares in the Ukrainian enterprise by a foreign investor is equivalent to alienation of assets by such enterprise itself. Based on such controversial conclusion SCSU is of the opinion that the customs duty becomes payable if the relevant foreign investor disposes of its shares in the Ukrainian enterprise prior to expiry of three years from the date of investment.
In our view, nothing in the law serves to support this conclusion.
Please note that under Ukrainian law tax clarifications, including generalized tax clarifications, are not deemed legislative acts, however they represent an official understanding of tax rules and laws by relevant state authorities which they will use during audits and within the administrative appeal procedures. Courts are not bound by the tax clarifications.
The customs authorities are likely to apply the new approach retroactively. This may affect the companies that applied the exemption in the past and later were acquired by new investors or went through a group reorganization. The statute of limitations for tax and customs reassessments is three years and may be extended in some cases.
Yet, Clarification No. 31 contains some good news too.
The SCSU points out that if the share of a foreign investor is diluted below 10 percent, such entity loses the status of "an enterprise with foreign investments". However, according to the SCSU, such a situation does not trigger an obligation to pay the customs duty for assets which were exempted from such duty at the time when the investment was made. Please do not hesitate to contact us should you have any questions on the above.
DLA PIPER UKRAINE – TAX TEAM:
[1] Svitlana Musienko, Legal Director, Head of Tax, T +380 44 490 9564; E svitlana.musienko@dlapiper.com
[1] Svitlana Musienko, Legal Director, Head of Tax, T +380 44 490 9564; E svitlana.musienko@dlapiper.com
[2] Yulia Logunova, Senior Associate, T +380 44 495 1787; E yulia.logunova@dlapiper.com
[3] Illya Sverdlov, Senior Associate, T +380 44 490 9575; illya.sverdlov@dlapiper.com
[4] Dmytro Donets, Associate, T +380 44 490 9575; E dmytro.donets@dlapiper.com
[5] Lilia Sylvestrova, Associate, T +380 44 490 9575; E lilia.sylvestrova@dlapiper.com
[3] Illya Sverdlov, Senior Associate, T +380 44 490 9575; illya.sverdlov@dlapiper.com
[4] Dmytro Donets, Associate, T +380 44 490 9575; E dmytro.donets@dlapiper.com
[5] Lilia Sylvestrova, Associate, T +380 44 490 9575; E lilia.sylvestrova@dlapiper.com
DLA Piper Ukraine LLC is part of DLA Piper, a global legal services organisation. International Law Firm of the Year 2008 in Ukraine Kyiv switchboard: +380 44 490 9575. The matters covered in this newsletter are intended as a general overview. This newsletter is not intended, and should not be used, as a substitute for taking legal advice in any specific situation. DLA Piper Ukraine LLC will accept no responsibility for any actions taken or not taken on the basis of this newsletter. If you would like further advice, please contact Tax Team at +380 44 490 9575. DLA Piper Ukraine LLC.
NOTE: DLA Piper Ukraine LLC is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org.
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26. CRISIS MANAGEMENT IN UKRAINE - ONE DAY FORUM
You will receive unique, practical and comprehensive information from a talented and diverse speaker faculty, who have great experience of operating in such difficult economic conditions, both in Ukraine and abroad, and whose services and advice are most in demand at present. They include:
- George Logush, Managing Director, Kraft Foods Ukraine
- Dr Thomas Herbeck, Partner & Managing Director, Boston Consulting Group
- Iryna Starodubova, Partner, Horizon Capital
- Todd Esposito, Chief Financial Officer, IMB Group
- Adlai Goldberg, Partner, Head of Advisory Services, Ernst & Young
- Myron Wasylyk, Senior Vice President & Managing Director, The PBN Company
- Jaroslav Kinach, Member of Board of Directors, XXI Century
- Bate Toms, Managing Partner, BC Toms & Co
- Andriy Bespyatov, Director of Research, Dragon Capital
- Jock Mendoza-Wilson, Director of International & Investor Relations, System Capital Management
- Cliff Dammers, Partner, BC Toms & Co
- Jorge Zukoski, President, American Chamber of Commerce in Ukraine
- Yelena Voloshina, Country Representative, International Finance Corporation
Full information about programme, special features, speakers and registration form are available for you at http://www.adamsmithconferences.com/bu3usbcwe
[return to index] [Action Ukraine Report (AUR) Monitoring Service]
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26. CRISIS MANAGEMENT IN UKRAINE - ONE DAY FORUM
“Strategies for effective corporate leadership in unprecedented times”
Thursday, 19th February 2009, Premier Palace Hotel, Kyiv, Ukraine
Adam Smith Conferences, London, UK, February 2009
LONDON - Adam Smith Conferences has convened a one-day forum on Crisis Management in Ukraine, which will take place on 19th February 2009 at the Premier Palace Hotel in Kyiv, Ukraine.
LONDON - Adam Smith Conferences has convened a one-day forum on Crisis Management in Ukraine, which will take place on 19th February 2009 at the Premier Palace Hotel in Kyiv, Ukraine.
The aim of the forum is to provide guidance and advice to leading corporates in Ukraine to ensure that they not only survive the current situation, but come out of it stronger and leaner. For detailed information and to register, do visit http://www.adamsmithconferences.com/bu3usbcwe
This is a timely and information-packed one-day forum, which addresses all the key issues that are crucial to business right now. These include: A macroeconomic update and timeline for recovery; restructuring; refinancing debt and accessing credit; M&A – distressed acquisitions and disposals; working within the employment law; private equity and turnaround investing; enterprise cost reduction; maintaining communications with the market and much more …
This is a timely and information-packed one-day forum, which addresses all the key issues that are crucial to business right now. These include: A macroeconomic update and timeline for recovery; restructuring; refinancing debt and accessing credit; M&A – distressed acquisitions and disposals; working within the employment law; private equity and turnaround investing; enterprise cost reduction; maintaining communications with the market and much more …
You will receive unique, practical and comprehensive information from a talented and diverse speaker faculty, who have great experience of operating in such difficult economic conditions, both in Ukraine and abroad, and whose services and advice are most in demand at present. They include:
- George Logush, Managing Director, Kraft Foods Ukraine
- Dr Thomas Herbeck, Partner & Managing Director, Boston Consulting Group
- Iryna Starodubova, Partner, Horizon Capital
- Todd Esposito, Chief Financial Officer, IMB Group
- Adlai Goldberg, Partner, Head of Advisory Services, Ernst & Young
- Myron Wasylyk, Senior Vice President & Managing Director, The PBN Company
- Jaroslav Kinach, Member of Board of Directors, XXI Century
- Bate Toms, Managing Partner, BC Toms & Co
- Andriy Bespyatov, Director of Research, Dragon Capital
- Jock Mendoza-Wilson, Director of International & Investor Relations, System Capital Management
- Cliff Dammers, Partner, BC Toms & Co
- Jorge Zukoski, President, American Chamber of Commerce in Ukraine
- Yelena Voloshina, Country Representative, International Finance Corporation
Full information about programme, special features, speakers and registration form are available for you at http://www.adamsmithconferences.com/bu3usbcwe
NOTE: The US-Ukraine Business Council (USUBC) is supporting this event and would like to offer you and your colleagues 10% discount [1]
on current registration fee. Please, quote VIP code BU3USBCWE to get discount.
If you have any questions, Adam Smith Conferences staff will be happy to help. Please contact Lyudmyla Durneva on +44 207 0177339/7444
on current registration fee. Please, quote VIP code BU3USBCWE to get discount.
If you have any questions, Adam Smith Conferences staff will be happy to help. Please contact Lyudmyla Durneva on +44 207 0177339/7444
[1] Discount is not valid for persons who have already registered to participate at this conference and/or seminar(s). All discounts can only be applied at the time of registration and cannot be combined. All discounts are subject to approval.
PS: Due to popular demand, Adam Smith Conferences will also be holding Crisis Management in Russia forum on 17th February at the Marriott Grand Hotel in Moscow.
PS: Due to popular demand, Adam Smith Conferences will also be holding Crisis Management in Russia forum on 17th February at the Marriott Grand Hotel in Moscow.
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Articles are Distributed For Information, Research, Education, Academic,
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The SigmaBleyzer Emerging Markets Private Equity Investment Group and The Bleyzer Foundation offers a comprehensive collection of documents, reports and presentations published by its business units and organizations.
All publications are grouped by categories: Marketing; Economic Country Reports; Presentations; Ukrainian Equity Guide; Macroeconomic Situation Reports (Ukraine, Romania, Bulgaria, Kazakhstan). LINK: http://www.sigmableyzer.com/index.php?action=publications
"UKRAINE - A COUNTRY OF NEW OPPORTUNITIES"
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If you would like to read the ACTION UKRAINE REPORT- AUR, several times a month, please send your name, country of residence, and e-mail contact information to morganw@patriot.net. Information about your occupation and your interest in Ukraine is also appreciated.
If you would like to read the ACTION UKRAINE REPORT- AUR, several times a month, please send your name, country of residence, and e-mail contact information to morganw@patriot.net. Information about your occupation and your interest in Ukraine is also appreciated.
If you do not wish to read the ACTION UKRAINE REPORT please contact us immediately by e-mail to morganw@patriot.net. If you are receiving more than one copy please let us know so this can be corrected.
ACTION UKRAINE PROGRAM - SPONSORS
"Working to Secure & Enhance Ukraine's Democratic Future"
1. THE BLEYZER FOUNDATION, Dr. Edilberto Segura,
Chairman; Victor Gekker, Executive Director, Kyiv, Ukraine;
Washington, D.C., http://www.bleyzerfoundation.com.
Additional supporting sponsors for the Action Ukraine Program are:
2. UKRAINIAN FEDERATION OF AMERICA (UFA), Zenia Chernyk,
Vera M. Andryczyk, President; Huntingdon Valley, Pennsylvania
3. KIEV-ATLANTIC GROUP, David and Tamara Sweere, Daniel
Sweere, Kyiv and Myronivka, Ukraine, kau@ukrnet.net
4. RULG - UKRAINIAN LEGAL GROUP, Irina Paliashvili,
2. UKRAINIAN FEDERATION OF AMERICA (UFA), Zenia Chernyk,
Vera M. Andryczyk, President; Huntingdon Valley, Pennsylvania
3. KIEV-ATLANTIC GROUP, David and Tamara Sweere, Daniel
Sweere, Kyiv and Myronivka, Ukraine, kau@ukrnet.net
4. RULG - UKRAINIAN LEGAL GROUP, Irina Paliashvili,
President; Kyiv and Washington, general@rulg.com, www.rulg.com.
5. VOLIA SOFTWARE, Software to Fit Your Business, Source your
IT work in Ukraine. Contact: Yuriy Sivitsky, Vice President, Marketing,
Kyiv, Ukraine, yuriy.sivitsky@softline.kiev.ua; Volia Software website:
http://www.volia-software.com/.
5. VOLIA SOFTWARE, Software to Fit Your Business, Source your
IT work in Ukraine. Contact: Yuriy Sivitsky, Vice President, Marketing,
Kyiv, Ukraine, yuriy.sivitsky@softline.kiev.ua; Volia Software website:
http://www.volia-software.com/.
6. U.S.-UKRAINE BUSINESS COUNCIL (USUBC), Washington,
D.C., Promoting U.S.-Ukraine business investments since 1995.
Join USUBC Today....LINK: http://www.usubc.org
7. UKRAINIAN ORTHODOX CHURCH OF THE USA, Archbishop
Antony, South Bound Brook, New Jersey, http://www.uocofusa.org
8. WJ GROUP of Ag Companies, Kyiv, Ukraine, David Holpert, Chief
Financial Officer, Chicago, IL; http://www.wjgrain.com/en/links/index.html
9. EUGENIA SAKEVYCH DALLAS, Author, "One Woman, Five
Lives, Five Countries," 'Her life's journey begins with the 1932-1933
genocidal famine in Ukraine.' Hollywood, CA, www.eugeniadallas.com.
10. ALEX AND HELEN WOSKOB, College Station, Pennsylvania
11. SWIFT FOUNDATION, San Luis Obispo, California
12. DAAR FOUNDATION, Houston, Texas, Kyiv, Ukraine.
http://www.daarfoundation.org/home.htm.
http://www.daarfoundation.org/home.htm.
13. ArtUkraine.com; www.ArtUkraine.com, to purchase Ukrainian
magazines and books write to ArtUkraine@voliacable.com.
magazines and books write to ArtUkraine@voliacable.com.
14. DUNWOODIE TRAVEL BUREAU, Specializing in Ukraine travel,
Alesia Kozicky, Owner/Travel Agent, http://www.DunwoodieTravel.com;
Alesia Kozicky, Owner/Travel Agent, http://www.DunwoodieTravel.com;
15. bne, businessneweurope, Berlin, Ben Aris, Editor-In-Chief.
http://www.businessneweurope.eu; editor@businessneweurope.eu
http://www.businessneweurope.eu; editor@businessneweurope.eu
PUBLISHER AND EDITOR - AUR
Mr. E. Morgan Williams, Director, Government Affairs
Washington Office, SigmaBleyzer, The Bleyzer Foundation
Mr. E. Morgan Williams, Director, Government Affairs
Washington Office, SigmaBleyzer, The Bleyzer Foundation
Emerging Markets Private Equity Investment Group;
President, U.S.-Ukraine Business Council (USUBC)
Trustee, "Holodomor: Through The Eyes of Ukrainian Artists"
1701 K Street, NW, Suite 903, Washington, D.C. 20006
Tel: 202 437 4707; Fax 202 223 1224
Needed: 'Vice Presidents in Charge of Revolution'
To keep the power and spirit of the Orange Revolution alive and well
Power Corrupts and Absolute Power Corrupts Absolutely.
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