ANNUAL REPORT Message from the Chairman of the Chamber Board of Directors

2012 ANNUAL REPORT Message from the Chairman of the Chamber Board of Directors

Dear Chamber Members, tees’ performance and internal and external communication. The same can be said about the successful development of the has put in Ukraine’s path, the Chamber and its executive team remainDespite focused all the on politicalthe future and and financial look forward challenges to the continuedthat 2012 - successes of the Chamber and each of its Members. Over the Business Networking platform – the Chamber has focused on- tomerfurther service. developing a well-rounded offering of benefits and ser vices by being proactive, innovative, and oriented towards cus last 20 years the Chamber has been striving to unite the leading- businesses in Ukraine, irrespective of their national origin, to On behalf of the Board of Directors I would like to once again work together to create a better business environment and fa express our sincere gratitude for the support and involvement cilitate new investment in the country’s economy. Celebration of of every one of our Member Companies. Their efforts have been the organization’s 20th Anniversary – a major milestone in the key to driving the Chamber’s activities in 2012. The road has areChamber’s proud to history have been – made a witness us once to again and participant think about in how Ukraine’s much proudnot always of. been easy, but by working together and supporting developmentthe country has as anaccomplished independent throughout nation as it all has these moved years. to emWe- each other we have collectively achieved a lot that we can be brace the principles that are the hallmarks of successful market Sincerely, economies. Ian Borden Chamber Board of Directors 2012 has been especially successful in terms of maintaining- an effective dialog between the business community and the theGovernment Chamber of continued Ukraine. toProviding implement our theMembers comprehensive with informa eco- tion, high level engagement, and access to key decision makers,

nomic reform that Ukraine desperately needs to successfully compete in a challenging global marketplace and attract much- needed domestic and foreign investment. This year special attention went to strengthening the Com mittee structure and Policy Team performance to ensure that- the correct mix of Committees and Working Groups is in place. The results of the 2012 Chamber Membership Satisfaction Sur- vey clearly showed positive tendencies in reinforcing advocacy and policy activities, including as regards Chamber Commit 2 ANNUAL REPORT /2012 www.chamber.ua Message from the Chamber President

Dear Chamber Members,

as the business, investment, and political landscapes change. Enhancing Ukraine’s global competitiveness remains We will continue to focus on the future, doing what we can- a key priority for the American Chamber of Commerce in on behalf of our Members, to identify new opportunities, to Ukraine. Despite the financial uncertainty, driven by the- protect their interests through focused lobbying and advo Euro zone, which has created a bit of trepidation within the- cacy efforts aimed to increase Ukraine’s competitiveness, to business community, in 2012 the country managed to sig- Membersprovide quality to succeed. segmented networking opportunities, and nificantly improve its positions in rankings by two interna to serve as a strong information platform helping all of our tionally recognized organizations – the World Economic Fo - rum (WEF) and the World Bank (WB). Such improvements The 2012 Annual Report is designed to provide you with are major successes in terms of the country’s positioning in a brief snapshot of the major activities and accomplish the international arena and have everything to do with the- ments of your Chamber over the last year. We look forward implementation of hard-won reforms, many of which the environment.to working with our Membership in 2013 and beyond, as American Chamber of Commerce in Ukraine was directly in- we all strive to succeed in this challenging and rewarding volvedership instrives shaping to riseand toadvocating the top offor. this important list. But Sincerely, More, of course, needs to be done as the country’s lead Jorge Zukoski Chamber President moving from the bottom of the list to the middle over the- years has itself been a major accomplishment. In 2012 the business community that the Chamber represents has ob- served a positive tendency with respect to the readiness of thestate expert, officials business, on all levels and diplomaticto engage in communities a focused dialog, can offer. tak ing into consideration the international best practices that-

The Domestic and Foreign Investors Advisory Council (DFI- ableAC) under conditions the President for investors. of Ukraine is a good example of the leadership of Ukraine’s commitment to creating more favor-

We at the Chamber continue to focus our efforts on ensur ing that the organization remains relevant and value-added. We stay nimble and adjust to the needs of our Membership 3 ANNUAL REPORT /2012 www.chamber.ua TABLE OF CONTENT

...... 5

About the Chamber in Ukraine ...... 6

Administrative Staff as of December 1, 2012...... 7

Calendar2012 Chamber of Chamber Official Events Service . .Providers ......

...... 3354

Chamber Success Stories in 2012...... 66

Chamber Innovations in 2012 ...... 75

Ukrainian Government Relations ......

2012–2013 Partnership for Successfully Competing. . . . . in. .the . Global. . . . Economy ...... 9295

Chamber Committees and Working Groups ......

Chamber Knowledge Seminars and Training Programs...... 148

Chamber GourmetBusiness Club Networking. . . . .and . . Social . . . Activities...... 152

...... 160

Membership Discount Programs...... 166

New Members in 2012 168

4 ANNUAL REPORT /2012 www.chamber.ua THE CHAMBER IN UKRAINE

- Over the last 20 years one of the principle activities- lish new contacts, and expand activities by participating in of the American Chamber of Commerce in Ukraine- Chamber Committees and stratified/targeted Business Net trance of (Chamber)potential new has investors been to representinto the Ukrainian the internation market. working events. - ally oriented investment community and to facilitate the en clude but are not limited to exclusive individual and corpo- with the Ukrainian authorities to improve the business en- rateThe discounts value-added from ChamberChamber MembersMembership within benefits the Chamber also in vironmentThe Chamber and successfully promote fair works and transparent to establish rules cooperation for do-

Discount Program; the continuously expanding Chamber ing business in Ukraine. It also works to secure Ukraine’s more.Gourmet Club, which already unites over 80 restaurants; integration into the larger global community. The Chamber- streamlined Express Business U.S. Visa Services; and much remains an active and engaged member of the Domestic and Foreign Investors Advisory Council (DFIAC) and the Eco nomic Reforms Committee under the President of Ukraine, as well as of a wide variety of Public Councils within the- bershipUkrainian forward. Ministries and State Services, using these venues to effectively push the policy agenda of the Chamber Mem

The Member organizations of the Chamber represent many of the largest strategic and institutional investors,- from over 50 nations across the globe, that are operating in Ukraine, investors that have committed a majority of the total foreign direct investment into this dynamic marketplace. Ukraine.We unite companies from a variety of regions and coun tries, including North America, Europe, Asia, Russia, and -

Taking into account the business needs and personal interests of the Membership, the Chamber arranges various types of events, allowing Members to communicate, estab 5 ANNUAL REPORT /2012 www.chamber.ua Administrative Staff as of December 1, 2012

PRESIDENT Ms. Olga Gvozdova Mr. Ivan Bachynsky Ms. Kateryna Smol E-Publications Coordinator

Mr.POLICY Jorge Zukoski TEAM PolicyMs. Lesya Team Lysyak Assistant Ms. Vitalina Ivakhnenko ChiefMs. Olena Accountant Potylko Dr. Yaroslav Voitko PolicyMs. Anna Team Medvedeva Assistant POSMr. Borys& Marketing Kuleshov Coordinator AccountantMs. Valeria Kuzmina

PolicyMs. Daryna Manager Nakonechna PolicyMEMBERSHIP Team Assistant TEAM TechnicalMs. Diana Support Smolinska Coordinator HRMs. Coordinator Vitalina Novak Communications Team Ms. Anna Revyakina Senior Policy Officer Ms. Anastasia Romenska (BusinessMs. Olena Administration) Bochkovska Administrative Coordinator Development Coordinator AssistantEVENTS TEAM Senior Membership Mr. Oleksandr Chornyy Ms. Olga Skrypka Ms. Victoria Matsak PersonalMr. Andriy Assistant Fabrikant Policy Officer (Committees) Membership Development Coordinator Ms. Nataliia Iefimenko Ms. Olena Arustamova SystemMs. Anna Administrator Poida Policy Officer (Competitiveness) Ms. Anna Ilchenko Event Manager Mr. Volodymyr Poplavets PolicyMs. Dina Officer Narezhneva (Committees) SeniorMs. Maria Event Shulga Coordinator Receptionist CRMMs. Julia Coordinator Gritsenko Driver Mr. Igor Zabailovych PolicyMs. Natalya Officer Plikha(Energy Issues) SeniorMr. Oleksandr Event Coordinator Matkovsky MembershipCOMMUNICATIONS Programs Coordinator TEAM Event Coordinator Driver Ms. Olena Shynkarenko Ms. Krystyna Kovalenko Policy Officer Communications and (Communications)Ms. Tetyana Prokopchuk Event Coordinator Horizon Park Business Center Mr. Dmitry Gruzyn 12 Amosova Street, 15th Floor PolicyMr. Denys Officer Sobolev (Committees) Ms.Marketing Anastasia Politiuk Manager Kyiv 03680, Ukraine Coordinator EventADMINISTRATIVE Assistant TEAM Phone: (380-44) 490-5800 Policy Officer (Agricultural Senior Communications Fax: (380-44) 490-5801 Issues)Ms. Iryna Syrotenko Ms. Zena Kleshchar Ms. Nadiya Polishchuk E-mail: [email protected] Coordinator www.chamber.ua Policy Officer (Food & Web-content / E-Publications Administrative & Financial Beverages Committee) Manager 6 ANNUAL REPORT /2012 www.chamber.ua 2012 CHAMBER OFFICIAL SERVICE PROVIDERS

7 ANNUAL REPORT /2012 www.chamber.ua 20122012 Chamber CHAMBER Official Service OFFICIAL Providers SERVICE PROVIDERS “Official Service Provider” status from the American Membership.These goods and/or services help the Chamber to fulfill its Chamber of Commerce in Ukraine (Chamber) is- mission and vision while providing value added services to its granted to Chamber Member organizations that provide goods and services to the Chamber under special agree ments, either on a pro bono basis or at greatly reduced rates.

8 ANNUAL REPORT /2012 www.chamber.ua

www.chamber.ua 2012 Chamber Official Service Providers

Astelit LLC - um enterprises and corporations. BUSINESS life — brand for businesses: small and medi date mobile telecommunications services and innovative BUSINESS life provides customers with the most up-to-

offers to maximize business effectiveness. BUSINESS life stands out with its advantageous tariffs for services and products, its unique proposals for roaming, its mobile marketing services for any kind of business, and its convergent services (rent of channels, fixed telephony,- and Internet). Moreover, clients get additional advantages through the simple, lucrative BUSINESS PLUS loyalty pro gram.

12 Amosova St., Horizon Park BC Kyiv 03680, Ukraine Phone: +38 (044) 233-3131 Fax: +38 (044) 233-3062 E-mail: [email protected] Website: www.businesslife.com.ua

9 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Audit Firm “RSM ApiK”

“Audit Company “RSM APiK” was created in July 1993. We have also developed extensive contacts with 100% During the period of company’s activity our specialists have foreign-owned companies and banks. provided audit services to more than 400 companies and 80 banks. RSM APiK is one of the leading audit companies on Ukrainian market of audit and consulting services. Since- 37/19 Donetska St. September 2007 our firm has become a member of RSM 1st floor International network, which is the sixth largest account Kyiv 03151, Ukraine ing and audit organization in the world . On the one hand this is acknowledgement of our high Fax: +38 (044) 501-5934 professional level on the other hand it gives a possibility to- E-mail: [email protected] cooperate with colleagues from more than 630 offices in 72 Website: www.rsmapik.com.ua countries and to provide support of your business practically in any place in the world. The Company’s main areas of activity are the provision of various types of audit and re lated services to commercial banks. High rate of proficiency- nessof the spheres, company state and institutions, its contribution and in to the the professional development audit of bank audit methodology have gained recognition in busi

community of Ukraine. RSM APiK is the only audit company in Ukraine, which has become a member of Association of- Ukrainian Banks. RSM APiK has lengthy experience of work with large joint-stock companies and state enterprises spe- cializing in the most important areas of the economy (fuel and energy complex, technical connection and telecommu nication, insurance business, and the like.).

10 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Benefit Systems LLC

Benefit Systems is the creator and operator of MAXI,- 5A Zoologichna St. the first multi-branded loyalty program in Ukraine. With Kyiv 04119, Ukraine 200,000 cardholders in 2012, the MAXI Program is an ef Phone: +38 (044) 498-0086 ficient sales stimulation tool for retailers in Ukraine. Fax: +38 (044) 498-0086 MAXI is designed to be a top-of-the-wallet card for all E-mail: [email protected] household members. The MAXI CARD bonus system allows- Website: www.maxicard.ua customers to earn on everyday purchases like clothes or gasoline as well as on more serious items, including insur ance policies, electronics, holiday bookings, etc. Afterwards, cardholders can redeem accumulated bonuses in the MAXI- network as they wish. The MAXI Program enables its partner retailers to ana- lyze their databases and customers’ shopping behavior, which allows for targeting each segment with individual offers and building true customer relationships. The MAXI Program has launched in Kyiv, Dnepropetro vsk, Kharkov, Donetsk, Lvov, Simferopol, and Odessa, and will soon expand to all Ukraine’s other major cities. There- are expected to be a million cardholders in 2013. - MAXI’s ambitious strategy is based on shareholders’ fi nancial commitment and on a dynamic team led by interna tional experts in loyalty marketing.

11 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Brain Source International

- vicesBrain for Sourcemultinational International companies is the across largest all Executive industries. Search network in New Europe providing a wide range of HR Ser

us Ourup to main three benefit weeks is to that provide we work our clientsfaster than with most a short of ourlist competitors in executive search industry. Normally, it takes - of qualified candidates. - Locations of our offices allow us to successfully accom plish search assignments on the territories of United King dom, Eastern Europe, Russia, Ukraine, Belarus, Moldova, staffGeorgia, and Armenia,our Clients. Kazakhstan and Azerbaijan. We strive to build long term relations both with our own

Welcome to Brain Source International!

3 Sportyvna Sq., 2nd floor Kyiv 01601, Ukraine Phone: +38 (044) 390-5010 Fax: +38 (044) 390-5006 E-mail: [email protected] Website: www.brain-source.com

12 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Carlsberg Ukraine

- Carlsberg Ukraine is owned by Carlsberg Group, one of 137 Chervonopraporna St. the leading brewing groups in the world, with a large port Kyiv 03026, Ukraine folio of beer and other drinks brands. Carlsberg Group has Phone: +38 (044) 490-2929 over 41,000 employees and its products sell in more than- Fax: +38 (044) 490-2933 150 markets. In 2012 Carlsberg Group sold more than 135 E-mail: [email protected] million hectoliters of beer – the equivalent of 40 billion bot Website: www.carlsbergukraine.com tles. Carlsberg Group was the official sponsor of the UEFA com.EURO 2012 football championship in Poland and Ukraine. For more information, please visit www.carlsberggroup.-

Carlsberg Group in Ukraine includes breweries in Zapor izhzhia, Kyiv, and Lviv. Over 3,500 employees work at the company. The Group portfolio in Ukraine includes such beer and soft drink trademarks as Slavutich, Lvivske, Tuborg, Baltika, Carlsberg, Holsten, Corona, Arsenal, Negro Modelo, Kvas Taras, Khmilne, Top Tea, Somersby, Guinness, Kilkenny,- Harp, and Zatecky Gus. For over six months of 2012 Carlsberg Ukraine was sec ond in terms of volume on Ukraine’s beer market. According to AC Nielsen data, the initial company market share was- 30.4%. The company is also a leader on the Ukrainian kvas market — according to AC Nielsen data, until June, its mar ket share was 34.4%.

13 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Citibank, PJSC We continue to invest in developing our products and - servicesCitibank and transfers are proud best to becorporate the bank practices of choice from for manyCiti’s Citibank is a 100%-owned subsidiary of Citigroup, Inc. multinational companies with offices in Ukraine. (headquartered in New York, New York, U.S.A.) that deliv- build a reliable and effective franchise. ment.ers financial services through its Institutional Clients Group, global operations into its growing Ukrainian business to its Global Consumer Group, and its Global Wealth Manage

Citibank was registered by the National Bank of Ukraine in May, 1998. On October 30, 1998 the Bank was granted- 16G Dymytrova St. the package of banking licenses authorizing it to conduct all Kyiv 03150, Ukraine principal banking operations for corporate customers (resi Phone: +38 (044) 490-1000 dents and non-residents). - Fax: +38 (044) 490-1030 Citibank has a dedicated local corporate banking and E-mail: [email protected] innovativetreasury team, products which to actively the Ukrainian co-operates market. with our Institu Website: www.citigroup.com tional Clients Group and Treasury specialists to introduce-

Citi Ukraine offers a range of market-leading cash man agement, trade, and securities products and services to our clients. They are delivered via our award winning online CitiDirect banking platform, enabling us to get closer to our- clients throughout Ukraine. offshoreCiti has escrow launched services. custody services for Ukrainian securi ties as well as agency and trust services, including on and - Citibank won Euromoney magazine’s award for Best Cash Management bank in Ukraine in 2009 and Global Fi nance magazine’s award for Best Corporate Internet Bank in Ukraine in 2009.

14 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

CMS Cameron McKenna LLC - business issues and delivers client-focused services using a joint strategy executed locally across 27 jurisdictions, with 53 offices CMS Cameron McKenna opened its office in Ukraine in the sum in Western and Central Europe and beyond. CMS was established mer of 2007. At the moment we have a four-partner practice in Kyiv. in 1999 and today comprises nine firms, employing over 2,400- Each partner has significant experience on the Ukrainian market. - lawyers and headquartered in Frankfurt, Germany. CMS’s nine CMS Cameron McKenna is the first law firm in Ukraine with its- member firms are the following: CMS Adonnino Ascoli & Cava headquarters in London. Our team combines both local and inter sola Scamoni (Italy); CMS Albinana & Suarez de Lezo (Spain); CMS- national lawyers, which ensures that our clients receive the bene Bureau Francis Lefebvre (France); CMS Cameron McKenna LLP fit of in-depth local knowledge and international best practices. (UK); CMS DeBacker (Belgium); CMS Derks Star Busmann (Neth The leading international directories Chambers and Partners, erlands); CMS von Erlach Henrici (Switzerland); CMS Hasche Sigle Legal 500, Best Lawyers, and PLC Which Lawyer? have ranked (Germany); and CMS Reich-Rohrwig Hainz (Austria). three of our Kyiv partners among the leading individual lawyers in the country. CMS Cameron McKenna has also been recognized 38 Volodymyrska St. as BestOur Internationalteam has extensive Law Firm experience in Ukraine in forthe twoUkrainian years in market a row 6th floor and(2009 has and advised 2010). Ukrainian and international clients in various Kyiv 01034, Ukraine Phone:+38 (044) 391-3377 Fax:+3 8 (044) 391-3388 areas of the law, including corporate, mergers and acquisitions, E-mail: [email protected] banking and finance, real estate, labor, capital markets, energy Website: http://www.cms-cmck.com and projects, competition, investments, intellectual property, oil- and gas, telecommunications, and public-private partnerships. In the CEE region, CMS Cameron McKenna has offices in Bul garia, the Czech Republic, Hungary, Poland, Romania, Slovakia, and Ukraine. We are able to develop long-term relationships with our regional clients and we help them to take advantage of the many opportunities available in Central and Eastern Europe. CMS Cameron McKenna is a founding member of CMS. CMS- is an organization of independent European law and tax firms of choice for organizations based in, or looking to move into, Eu Law . Tax rope. CMS provides a deep local understanding of legal, tax, and 15 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Coca-Cola Ukraine Limited -

Coca-Cola Ukraine Limited is a Ukrainian registered enterprise with 100% foreign capital. It has been registered in Ukraine since 1992 and is an affiliate of the Coca-Cola Com pany, with its headquarters in Atlanta, Georgia, USA. - temCoca-Cola in Ukraine. Ukraine Ltd., together with its bottling partner, Coca-Cola Beverages Ukraine Ltd., form the Coca-Cola Sys-

One of the Company’s primary roles and responsibilities is to protect its trademarks and develop its image in itsUkraine. operations. The Company carries out a whole range of market ing activities and marketing research programs related to-

Coca-Cola Ukraine emphasizes its commitment as a so cially responsible corporate citizen. We aspire to continue working towards the integral and sustainable growth of Ukraine, with special priority placed on enriching the lives of the community and preserving the environment. The- tural,company and carriespublic eventsout numerous in Ukraine. socially important projects and is a major sponsor of numerous important sports, cul

17G Skovorody St. Kyiv 04070, Ukraine Phone: +38 (044) 490-0880 Fax: +38 (044) 490-0897 E-mail: [email protected] Website: www.coca-cola.ua

16 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Credit Agricole Corporate and Investment Bank Credit Agricole Bank is mostly devoted to the retail and SME businesses, whereas Credit Agricole Corporate and Investment Bank is devoted to bigger corporations, both - Credit Agricole Corporate and Investment Bank was in Western and local. 1993 the first fully operational Western bank in Ukraine un der the Credit Lyonnais brand. Since 2004 it has been under 23A Volodymyrska St. the Calyon brand. Kyiv 01034, Ukraine Phone: +38 (044) 490-1400 other western bank in an environment where experience is Its 19 years of experience, four more years more than any Fax: +38 (044) 490-1402 E-mail: [email protected] a key, have made and still make Credit Agricole Corporate Website: www.ca-cib.com.ua and Investment Bank the foreign bank of reference. Credit Agricole Corporate and Investment Bank: named– Has the the mostbest FITCHtrusted ratings. bank in Ukraine (the Expert, a – Has for three years in a row (2008, 2009, 2010) been

Ukrainian economic weekly). - – Is the №1 bank in terms of cash management. – Is a leader in foreign exchange and local currency mon ey market transactions for international companies. – Is a leader in M&A transaction servicing. Credit Agricole Corporate and Investment Bank belongs to the Credit Agricole Group. Credit Agricole is a retail bank leader in France and in Europe and a first-class partner for the economies in which it operates. Its more than 160,000 employees work to satisfy the banking requirements of 49 million customers in 70 countries In Ukraine the Credit Agricole Group owns a 200-outlet retail bank, Credit Agricole Bank (the former Index Bank), which it purchased in 2006. 17 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Denza Workspace

Founded in 2001, Denza Workspace is a well-established The breadth of our expertise means that you don’t have Theand core dynamic line of company our business that leads is the in creation the development of professional and to source multiple suppliers – we can provide the complete realization of interior solutions for commercial real estate.- range of services. We always provide timely solutions and services of the highest quality to our clients. corporate environments for clients, using the latest products and trends in office design. - 86B Bozhenka St. We provide a comprehensive portfolio of services, in Kyiv 03150, Ukraine cluding: planning office workspace, elaborating architec Phone: +38 (044) 379-3607 tural and design projects, fulfilling all fit-out decoration +38 (044) 379-3609 and engineering work, providing general contractor and Fax: +38 (044) 379-3608 project management services, and supplying furniture. E-mail: [email protected] The wide range of our products and services helps us to Website: www.denza.com.ua ensure that employees who spend hours each day at work do so in maximum comfort and with minimal long-term health risks. To achieve this goal, we combine products from leading European furniture manufacturers such as Herman Miller (England), Estel (Italy), and DVO (Italy). theirIn offices.essence, Our we construction provide a turn-key department solution handles to clients all is- that want not only to buy furniture, but also to fit out authorities. sues pertaining to approvals and permissions from the-

Our clients in Ukraine include big international com panies such as Sanofi Aventis, Hewlett Packard, Procter & businessGamble, Mieleleaders. Ukraine, ING Bank, the U.S. Embassy, DLA Piper, Canon, Credit Suisse, and many other multinational

18 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Euro Leasing – An extensive regional network of client service support with more than 150 partners throughout Ukraine provides the highest- Euro Leasing is an innovative company that since its foundation- quality service - in 2004 has maintained a confident lead on the Ukrainian transport- – Euro Leasing offers an established trade-in system: ex leasing market. The Company has been chosen as the Official Leas change an old car for a new leased one with exclusive condi ing Provider for the American Chamber of Commerce. Euro Leas tions from Avtostock, the used vehicles dealer network ing provides services pertaining to the financial and operational Unique innovative Euro Leasing services: leasing of cars, commercial vehicles, and agricultural machinery, – Fleet-online – an innovative solution that optimizes costs and as well as a range of additional fleet management services. Euro helps ensure control and management of the car fleet Leasing provides high quality services, an individual approach to – Multi-brand fuel card – discounts on fuel purchased from the every client, and the widest range of service options. leading petrol companies of Ukraine (WOG, TNK, Shell, Lukoil, Parallel,- In addition to standard customer financing, Euro Leasing clients Socar, Neftek, and RUR) and on-line processing of card operations. - thereceive business a number needs of of benefits the client, during and service: on the best terms from our part- tions,Euro and Leasing’s provide prioritiesservices at are a European to maintain level. high-quality service stan ner– dealers Euro Leasing managers select and purchase vehicles that best fit dards and beneficial conditions of cooperation, match client expecta

Euro Leasing belongs to the Atoll Holding Group, one of the leading – Euro Leasing offers financial and operational leasing in UAH, players in the Ukrainian automotive market. Euro Leasing’s investor is USD, and euros for up to five years the Euroventures Ukraine Fund II (EVU II) – a direct investment fund, or a– seasonal Flexible schedulefinancial terms allow the client to select an individual one of the largest in Ukraine. payment schedule: an annuity, a schedule with a decreasing balance, requests a minimum set of documents from clients 4 Ivana Lepse Blvd. – Euro Leasing makes timely decisions regarding cooperation and Kyiv 03680, Ukraine lease contract Phone: +38 (044) 490-1087 – The registration and insurance of the vehicle are included in the- Fax: +38 (044) 490-1087 ministration of insurance claims, routine technical inspections, and the use E-mail: [email protected] – Euro Leasing’s client package includes 24/7 technical assistance, ad Website: www.lease.com.ua

ofon the its analyticalbusiness Fleet-Onlineneeds reporting system and a fuel card for free – Each client can create a personalized package of services based

19 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Hewlett-Packard UA LLC

Hewlett-Packard is a technology company operating in more than 170 countries with over 324,000 employees worldwide. The first HP entity in Ukraine was founded in 1997. HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans IT infrastructure,- nies.personal computing and printing, software, services, and outsourcing,HP Ukraine HP provides is among a local the HP world’s presence largest in a ITfast compa devel-

oping market, as well as partner, customer, and marketing- research. It intends to invest in Ukraine as a high potential and important market. HP is strongly oriented to provid ing top quality service through authorized service centers located in Kyiv and through regional service centers in the biggest cities of the country.

110 Zhylyanska St. Kyiv 01032, Ukraine Phone: +38 (044) 498-8000 Fax: +38 (044) 498-8001 E-mail: [email protected] Website: www.hp.ua

20 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Interfax-Ukraine News Agency -

providerThe Interfax-Ukraine of information inNews Ukraine’s Agency political belongs and to economicthe inter national Interfax Information Services group. It has been a - information market since 1992. Over this time, the agency has earned a reputation as be producting the most formats. authoritative and competent supplier of timely and objective information, in high-quality and popular news

Among its clients are leading Ukrainian and foreign mass media, commercial and mediatory companies, investments andfunds, trade banks missions. and financial institutions, foreign companies andNews representative reports from offices, Ukraine public are organizations, available to clients embassies, in al-

channels of Interfax International. most all the countries of the world through the distribution - The agency currency markets more than 20 information products about political and economic subjects in four lan newguages information (Ukrainian, services. Russian, English, and German). The agency’s product portfolio constantly expands with

8/5A Reytarska St. Kyiv 01034, Ukraine Phone: +38 (044) 270-7465 Fax: +38 (044) 270-6574 E-mail: [email protected] Website: www.interfax.com.ua 21 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

ISA Prime Developments

- ISA Prime Developments is a closed joint stock company with foreign capital. The company owns the business centers Horizon Park, located at 4 M. Hrinchenko St. and at 12- Amosova St. in Kyiv, close to downtown. It is currently de veloping other business centers on Zhilyanska St. and Gork- ogo St. All the business centers have unique qualities and- strategic locations making them perfect choices for international clients. Among its 50 tenants are the American Cham ber of Commerce in Ukraine, Unilever, Cisco Systems, Phil- ips, Nokia, Siemens, L’Oreal, Regus, Ferrero, Platinum Bank, Life:), and LaFarge. ISA Prime Developments offer the high est standards of property management, provided by New Horizon Property Services Ltd. The buildings are equipped with fully integrated HVAC systems, indoor and outdoor parking facilities, many in-house amenities such as cafes, banks, mini markets, dry cleaning, notary, and travel service providers, and 24-hour live guarded and CCTV security.

4 Grinchenko St. Kyiv 03680, Ukraine Phone: +38 (044) 490-6970 Fax: +38 (044) 496-3757 E-mail: [email protected] Website: www.nhps.com.ua

22 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

KLS -

KLS was founded by a group of professionals with con 3 Svyatoshynska St. siderable experience in the moving industry. It was created- Kyiv 03115, Ukraine with the aim of rendering moving services for international Phone/Fax: +38 (044) 502-3929 and Ukrainian companies/organizations, as well as for indi- E-mail: [email protected] viduals. Our moving services include: international moving Website: www.kls.ua of household goods and personal belongings, office mov ing, and residence and apartment moving. Our mission is to offer the best quality moving services and to function as a consultant to our customers for any questions related to relocation. Our main task is to help members of the foreign community move their personal belongings to Ukraine and provide them with moving services when they leave Ukraine.- Once they use our services, our customers remain with us for years, taking advantage of our friendly attitude, customer-driven approach, flexible management, and high quality. We are proud that among our customers are numerous em bassies, international organizations, and leading Ukrainian companies. Moving is a part of our customers’ lives and we try to make it as pleasant for our customers as possible. We share with our customers all the good things that moving brings: happiness from finding one’s personal possessions- in a new country and the joy of a quick and smooth move,- and we instill confidence, comfort, and respect. If your busi- lessness and is growing, even invisible or if your with officeus. Just premises show us are what uncomfort needs to able, we are at your disposal. Your office move will be pain

be moved and we’ll move it! Let professionals take care of your move! 23 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Kraft Foods Ukraina

- Kraft Foods Ukraina is a part of Kraft Foods Inc. and one of the largest food companies in Ukraine, with 1600 employees. Kraft Foods entered the Ukrainian market in 1994, theyear it acquired the Ukraina Chocolate Factory in Trosty snacksanets. In plant. 1999, despite the economic downturn in the coun try, Kraft Foods Ukraina acquired the Stari Petrivtsi salted - KFU products are sold in all Ukrainian cities and towns,- as well as in Moldova, Azerbaijan, Belarus, Georgia, Arme nia, Russia, Kazakhstan, Uzbekistan, Tadzhikistan, Turk menistan, and Mongolia. Its key brands in Ukraine are Korona, Milka, Barni, Tuc; Lyuks, Jacobs, and Carte Noire. Kraft Foods Ukraina is the leader on the Ukrainian coffee and salted snacks markets with its Lyuks brand.

23A Yaroslaviv Val St. Kyiv 01034, Ukraine Phone: +38 (044) 490-1300 Fax: +38 (044) 490-1310 E-mail: [email protected] Website: www.kraftfoods.com.ua

24 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Kyivstar JSC

- Kyivstar is a No. 1 telecom operator and one of the best brands in Ukraine. According to Ericsson annual survey Ky- 53 Dehtyarivska St. ivstar runs one of Europe’s best mobile networks covering Kyiv 03113, Ukraine all cities and towns and over 28 thousand villages, nation- Phone: +38 (044) 209-0070 al and regional highways and roads, most of sea and river- Fax: +38 (044) 232-2184 coastlines all over Ukraine. Kyivstar offers EDGE/GPRS ser E-mail: [email protected] vice through its whole coverage area and roaming servic Website: www.kyivstar.ua brands.es in 195 countries in 5 continents of the world. Kyivstar operates under “Kyivstar”, “djuice” and “Kyivstar Business”

Business users and households enjoy Kyivstar fixed-line services and broadband Internet access based on FTTB. Broadband Internet access offered under Kyivstar’s “Home Internet” service operates in 138 cities and the coverage is growing continuously. -

Kyivstar represents a Ukraine Business Unit of Vimpel com Ltd., a global telecom group operating in European, Asian and African markets. For reference please visit: www.beeline.ua,www.kyivstar.ua, www.vimpelcom.comwww.djuice.ua,

25 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Microsoft Ukraine, LLC

software, services, and solutions that help people and busi- Founded in 1975, Microsoft is the worldwide leader in - motenesses Microsoft realize their products, full potential. and provide In 2003 partner Microsoft and custom opened- its office in Ukraine to develop the software market, pro

er support, as well as to introduce and localize the newest- technologies and implement social initiatives in Ukraine. Microsoft is American Chamber of Commerce Official Busi- ness Productivity Provider, ensuring that the Chamber and its members can benefit from the latest Microsoft technolo gies and solutions. For more information please visit:

http://www.microsoft.ua. 75 Zhylyanska St. 4th floor Kyiv 01032, Ukraine Phone: +38 (044) 496-0310 Fax: +38 (044) 496-0317 E-mail: [email protected] Website: www.microsoft.ua

26 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

MTS Ukraine first and only brand from the CIS to enter into the BRANDZ™- Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown, a leading global mar MTS-Ukraine is a pioneer in mobile communication in Ukraine. ket research and consulting firm (MTS was in 89th place). The first mobile phone call took place in long-ago 1993. Today, 19 The brand’s value is estimated at $8.77 bln. - years later, every second Ukrainian uses MTS communication. In 2010 the MTS brand was fourth іn this rating. - MTS-Ukraine is a 100% affiliated company of Joint Stock In 2007 MTS-Ukraine joined the United Nations Global Com Company Mobile TeleSystems (MTS), the largest mobile phone pact network in acknowledgement of its obligations to do busi operator in the CIS and Central and Eastern Europe. Together- ness in accordance with universally accepted principles in the with its affiliated companies MTS services over 100 million areas of human rights, labor, environmental protection, and anti-- subscribers in Russia, Ukraine, Belarus, Armenia, and Uzbeki corruption. The company pays significant attention to principles stan. The company’s profit for 2008 was USD 1,381 billion. of social responsibility and to the 10 principles of the United Na MTS-Ukraine’s network covers more than 98% of Ukraine’s tions Global Compact. Corporate social responsibility is a major territory , territory on which lives 99% of the population. Its MTS-Ukraine strategic priority. MTS-Ukraine’s activity is based network services about 19 million subscribers. on social responsibility before the state, consumers, employees, MTS constantly supports innovative company status. partners, competitors, and Ukrainian society in general. In particular, the company offers services on the basis of such new technologies as CDMA-450 in Ukraine and 15 Leipzigska St. 3G (UMTS) in Russia, Uzbekistan, and Armenia. MTS is Kyiv 01601, Ukraine the first in Ukraine and one of the first in Russia to have Phone: +38 (044) 230-0257 started protected corporate e-mail BlackBerry service. Fax: +38 (044) 230-0256 benchmarkIn addition, that the companyprovides continuesfor the active to work interconnected actively in Website: www.mts.com.ua the area of convergent services – a new mobile industry example, mobile and fixed communication, data transmis- sioncoexistence within ofthe several limits communicationof protected corporate technologies networks, – for

- high-speed mobile Internet, and more. For its innovation and high service quality, MTS has re ceived recognition from world experts. In 2008 MTS was the 27 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

NIKO Group of Companies -

The NIKO Group of companies have been successfully op Berth #4 Naberezhno-Khreshatytska St. erating on the Ukrainian market since 1992. 4th floor, Dnipro-Plaza Business Center - Kyiv 04070, Ukraine Our key activity lines include: Phone: +38 (044) 200-4111 – automotive business: retail (our dealer network in Fax: +38 (044) 200-4222 representscludes 15 such dealership famous centers automobile located brands in Kyiv,as Mitsubishi, Donetsk, E-mail: [email protected] Dnepropetrovsk, Zaporozhye, Lviv, and Chernivtsi; NIKO Website: www.niko.ua

Mazda, Nissan, Ford, Renault, Citroёn, Peugeot, Infiniti, Audi,- and Porsche), service, import and distribution; – financial sector operations: insurance, leasing, financing and lending, investment and asset management; – construction; logistics services, custom brokerage, cor porative social responsibility. Major NIKO sponsorship projects: – NIKO is an official automotive supplier for the Dynamo- Football Club (Kyiv). – NIKO is an official sponsor of the Yalta Rally Cup (Euro pean rally championship). – NIKO is a general sponsor of the Ivan Franko National- Dramaternational Theatre tournament. and the Kyiv Academic Puppet Theatre – NIKO is an official sponsor of the annual Bodyguard in

– NIKO is an official partner of the National Transport University in Kyiv.

28 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Ukraine International Airlines (UIA) maintenancestandards are for fully western-built in line with aircraft.international requirements. UIA’s Technical Division provides full range of technical-

In 2012 UIA celebrates the 20th anniversary. - UIA is a classic European carrier with the main competi Ukraine International Airlines (UIA) was established in- tive advantages as follows: 1992 to render passenger and cargo air transportation ser • Flexible pricing policy; vices. UIA highest priority is safe and reliable air transporta • Suitable flight schedule; tion combined with high service standards and comfort for • Excellent service; - passengers. rier.• Traditional Ukrainian hospitality. Ukraine International Airlines connects Ukraine with Ukraine International Airlines is a privately owned car over 40 capitals and key cities of Europe, Asia, Africa, and CIS providing connections with its international partners’ Online ticket sales and reservations along with the latest flights to more than 3,000 other destinations worldwide- news are available on the company’s website at and operates over 700 scheduled flights per week. In 2011 www.flyUIA UIA passenger traffic amounted to over 2 million 100 thou sand passengers carried. Today tickets for UIA flights are 201–203, Kharkivske Shose, sold in over 70 countries worldwide. Ukraine International- Kyiv 02121, Ukraine tionalAirlines airport. have over 40 representative offices in Ukraine and Phone: +38 (044) 581-5656 abroad. The base airport for UIA is Kiev Boryspil Interna- Fax: +38 (044) 230-8866 E-Mail: [email protected] UIA was the first airline in the former USSR to start op Website: Www.Flyuia.Com erating western-built Boeing-737 aircraft. UIA has also become the first Ukrainian airline to commence operating new Boeing 737-800 NEW GENERATION aircraft. Currently UIA`s fleet consists of 20 Boeing 737 aircraft. UIA was the first airline in the CIS to be included in the- IATA quality register and to have obtained an IOSA (IATA Operational Safety Audit Programme) Certificate. This Cer tificate has been successfully confirmed for the forth time in 2011. This fact confirms that UIA operational and safety 29 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

Ukrainian Marketing Group UMG® arranges market research services in accordance with the ICC/ESOMAR international standards of marketing The Ukrainian Marketing Group® (UMG®) is the leading and social research and the AMA code of ethics. company of the UMG® Group of companies (UMG®), which Our experience: also incorporates: Beiersdorf, Cadbury, XXI Century Investments, Citibank, – MEMRB-UMG® Retail Audit Services Coca-Cola, Foxtrot, Furshet, L’Oreal, MTI, Nestle, PepsiCo, – Branding Agency MARKA Philip Morris, Procter&Gamble, Samsung, Sandora, Telenor, – COMCON – Ukraine (U-TGI) Tetra Pak, MTS, Utel, Veres, Utel, Veres, Vitmark, SABMiller, – COMCON – Pharma Ukraine Soyuz-Viktan, Ukrtelecom, UBRP, and many others. Today UMG® provides a full range of market research services in Ukraine, all the CIS countries, Western Europe,- 72 Velyka Vasylkivska St. andvices. the It USA.uses advanced world-wide methods and its own re- Kyiv 03680, Ukraine UMG® conducts all types of ad-hoc market research ser Phone: +38 (044) 568-5919 Fax: +38 (044) 568-5924 search methodologies, which cover detailed market analysis E-mail: [email protected] and brand positions and include: Website: www.umg.ua – Tracking survey (U-Track, TRACE); – Unique price research (CBC); – Innovation research; – Consumer landscape; – Advertising effectiveness study; – Advertising testing (Ad just); and more UMG® experts have professional experience in modern- research methods: – FGDs, in-depth interviews, ethnography studies (observa tion), in-home visits, accompanied shopping (qualitative); – F2F, СATI (CATI– center network in five CIS countries), PAPI, CAPI,- online panel for consumer surveys via Internet (quantitative); – desk research, expert surveys, qualitative and quantita tive surveys (complex strategic research) 30 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

UPS - UPS employs 425,300 employees throughout the world. In 2007 its generated revenues exceeded US$49.7 billion on a total global pack Founded in 1907 as a messenger company in the United States, age volume of four billion. For the twenty-third consecutive year, UPS- UPS has grown into a $49 billion corporation by clearly focusing has been rated “America’s Most Admired” company in its industry on the goal of enabling commerce around the globe. Today UPS is- in a survey conducted by Fortune magazine. UPS was the only com a global company with one of the most recognized and admired- pany in the survey to score above a 8.38 on Fortune’s 10-point scale, brands in the world. As the largest express carrier and package de and was ranked No.1 in the country for four of the eight attributes livery company in the world, we are also a leading provider of spe or criteria used to rank companies. UPS was ranked No.1 among cialized transportation, logistics, capital, and e-commerce services. all companies in quality of management, financial soundness, use- The company’s services including small package delivery, heavy of corporate assets, and social responsibility. It ranked No.2 in the internationalfreight transportation, trade, streamline and supply worldwide chain management,operations, and as improve well as country for quality of products and services, No.2 for long-term in trade financing and customs clearance. It helps companies simplify- vestment, No.5 for innovation, and No.5 for employee talent.

revenue. Every day, we manage the flow of goods, funds, and infor 20 Mechnykova St. mation in more than 200 countries and territories worldwide. - 1st floor Today the largest express carrier and largest package carrier in Kyiv 01021, Ukraine the world, UPS continues to develop the frontiers of logistics, sup Phone: +38 (044) 280-0000 ply chain management, and e-Commerce, combining the flows of Fax: +38 (044) 280-4164 goods, information, and funds. It is a company that has never shied E-mail: [email protected] away from reinventing itself, as its history demonstrates. Service bill Website: www.ups-ukraine.com receiver payment terms are now available for Ukraine. We believe- that this gives our business and our customers’ businesses flexible. All account holders and Chamber members now have the possibil ity to be invoiced monthly for their export and import volumes. - In 2005 UPS launched a new service in Ukraine- UPS Express- Saver, enabling delivery on the next business day to virtually all busi ness areas in the EU as well as in Liechtenstein, Norway, and Swit- zerland. All UPS customers can trace their shipments by sending an SMS message with the tracking number of the shipment to the mo bile number 0504690790. Headquartered in Atlanta, Georgia, USA, 31 ANNUAL REPORT /2012 www.chamber.ua 2012 Chamber Official Service Providers

World App, Inc.

WorldAPP is a leading provider of flexible Web-based 4/8 Kurenivsky Prov. data collection, integration, and presentation solutions 2nd floor for enterprises in technology, healthcare, education, and- Kyiv 04073, Ukraine ketother data sectors. and solve Fortune critical 1000 business companies problems. worldwide Unlike pure rely Phone: +38 (044) 379-1430 on WorldAPP to leverage customer, employee, and mar Fax: +38 (044) 379-1433 - E-mail: [email protected] SaaS vendors, whose business models limit customization, Website: www.keysurvey.com or internal efforts that can’t scale, WorldAPP’s strategic de velopment team partners with lines of business to rapidly build flexible and extensible point solutions that scale. The company’s powerful CORE data collection engine automates complex processes and integrates with best-of-breed and- legacy systems, speeding delivery of Web-based customized solutions that make integrated data engineering applica- tions (IDEAS) real. - Company products include and Key Survey Profes sional Unlimited, Key Survey Workgroup, and Key Sur- vey Enterprise. Professional service offerings include survey scanning, paper surveys, mail services, data entry, and survey design. Key Survey and Extreme Form are the official licens ees of the distinguished TRUSTe Privacy Seal Program and are certified by the EU Safe Harbor Privacy Program, with an authorization to securely host consumer data from any country.

32 ANNUAL REPORT /2012 www.chamber.ua CALENDAR OF CAMBER EVENTS 2012

33 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

January 11th • January 25th • - under the President of Ukraine - Meeting of the Economic Reforms Committee European Bank for Reconstruction and Develop ment’s 2011 Transition Report “Crisis and Transi January 12th • tion:• The People’s Perspective” - Meeting of the Coordinating Council on Agrarian Chamber Knowledge Seminar: “Features of Com Reform under the Ministry of Agricultural Policy munication Strategies of Large Companies at the and Food of Ukraine th National and Regional Levels” January 17th • January 30 • Meeting of the Working Group on Improvement Chamber Fuel & Energy Committee Meeting- Tradeof Provisions of Ukraine of the Draft Law “On Internal Trade” sourceswith participation of Ukraine of Mr. Volodymyr Ignashchenko, under the Ministry of Economic Development and Counselor to the Minister of Ecology and Natural Re • January 31th • Meeting of the Public Council under the State Chamber Members Appreciation Reception Service of Ukraine on Personal Data Protection January 18th • Executive Conference: Natural Gas and Ukraine’s •Energy Future JANUARY Meeting of the Public Council under the State Agency on Science, Innovation and Informatization January 19th • Chamber Traditional “Welcome Back” Business Networking Cocktail January20th • Meeting with Ukrainian Center for Independent •Political Research (UCIPR) Minister of Health of Ukraine Meeting with Ms. Raisa Moiseyenko, First Deputy Chamber Fuel & Energy January 24th • Committee Meeting Chamber English Language Movie Premiere 34 ANNUAL REPORT /2012“Contraband” www.chamber.ua Calendar of Chamber Events 2012

nd February 2 • - February 14th • - - CouncilMeeting under of the the Cabinet Parliamentary of Ministers Committee of Ukraine on and Ag Chamber Working Meeting with Mr. Vitaliy Khomu ricultural Policy and Land Relations, Businessmen tynnik, Head of the Verkhovna Rada Committee on Fi nance,• Banking, Tax and Customs Policy the• Coordinating Council on the Agricultural Reform - - Chamber Knowledge Seminar: “International Meeting of the Coordination Council for Regula th Structuring as Effective Tool for Ukrainian Business” tory Affairs of Pharmaceutical Sector under the Min February 15 • - th istry of Health of Ukraine February 7 • Chamber Tax Committee Meeting with participa th tion of Ms. Kseniya Lyapina, People’s Deputy of Ukraine Meeting of the Public Council under the National February 20 • - •Commission of Ukraine for Communications Regulation- - Chamber Working Meeting with the State Inspec nanceWorking of Ukraine Meeting of the Chamber Board of Direc tion• on Consumer Rights Protection of Ukraine - tors with Mr. Valeriy Khoroshkovskyi, Minister of Fi - Chamber Banking and Financial Services Commit th - February 8 • tee Meeting with participation of Ms. Galyna Paha chuk, Director of State Debt and International Finan Chamber “Asian New Year” Business Leaders cial Policy Department, Ministry of Finance of Ukraine •League Meeting

FEBRUARY Meeting of the Working Group on Grain Market Functioning under the Ministry of Agricultural Policy February 10th and• Food of Ukraine Meeting with the Mr. Yevgen Udod, Head of the •Dnipropetrovsk Regional Council Chamber Meeting with Officials of Lviv Region •State Administration February 13th • Meeting on Chamber Energy Forum UkraineChamber “In-Focus” Meeting with Mr. Igor Kaletnik, Head of the State Customs Service of Chamber Family Event Maslyana 35 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

February 21st • - Chamber Knowledge Seminar: “PwC Global Eco nomic• Crime Survey 2011: Results for Ukraine” International Investment Forum “Kyiv Region 2012: •Innovations. Initiative. Investments. Infrastructure” Chamber “Mardi Gras” Business Networking Cocktail • st nd State Department Global Business Conference (Washington DC, USA) – February 21 - 22 February 23rd • - tor Development of the Public Council under the Min- Meeting of the Commission on Pharmaceutical Sec

istry of Health of Ukraine February 24th • Chamber Training Program: “Effectiveness Beyond •Time” - tion Discussion on Updated Business Centers Classifica FEBRUARY • - andChamber Trade of Healthcare Ukraine Committee Meeting with Rep resentatives of the Ministry of Economic Development • - - Chamber Customs Committee Meeting with par ofticipation Ukraine of Mr. Sergey Bedash and Mr. Oleksiy Lish enko – Representatives from the Ministry of Finance February 25th • Chamber Family Event “Maslyana” February 28th • Chamber HR Committee Meeting Adam Smith Energy Forum 36 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

March 1st • - March 14th • Chamber IPR Committee Meeting with participa- Adam Smith 4th Annual Forum “Agribusiness in tion of Mr. Oleh Lashchuk, President of the Federation •Ukraine” of Franchising Development, Hospitality and Infra structure• – March 1st Working Meeting with Mr. Olexandr Klymenko, March 15th Head of State Tax Service of Ukraine - • Chamber Tax Committee Strategic Planning Session • Union of Industrialists and Entrepreneurs International Conference “Strategic Areas for De Meeting of Economic Council under the Ukrainian velopment of Accounting, Analysis and Audit” - • - • vice on Medicinal Products Celebration of World Consumer Rights Day orga Meeting of the Public Council under the State Ser nized by the State Inspection of Ukraine for Consumer March 2nd • Rights• Protection - - - Chamber Joint Healthcare and IPR Committees Working Meeting with Mr. Anatoliy Blyzniuk, Min MeetingHealth of with Ukraine participation of Mr. Vasyl Blikhar, Direc ister of Regional Development, Construction and Mu tor of the State Expert Center under the Ministry of nicipal• Economy of Ukraine • Cocktail - Chamber “St. Patrick’s Day” Business Networking Statutory Meeting of the Public Council under the th MARCH MARCH March 16 National Commission for the State Regulation of Com • th munications and Informatization Round Table “Harvest 2012” (Dnipropetrovsk) March 5 • March 17th • - Working meeting with Mr. Oleksandr Klymenko, Chamber Animated English Language Movie Pre March 7th •Head of the State Tax Service of Ukraine March 20th miere• Participation “The Lorax” in the festivities on the occasion of the - th Chamber Leadership Seminar: “Voices of Change” alists and Entrepreneurs March 12 • 20th Anniversary of the Ukrainian League of Industri - Round Table “Institualization of Lobbying in • Ukraine: Prospects for Adoption of Legislation” th Meeting of the Public Council under the State Cus March 13 • toms Service of Ukraine Ukraine • Working Meeting under the Ministry of Health of Round Table Discussion “Labor Remuneration - Ukrainian Reality and Expected Reforms” under the Parliamentary Committee on Social Policy and Labor 37 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

March 21st • - March 29th • - Meeting of the Public Council on Strategic Develop • First Kyiv Investment Forum - ment of Kyiv 2025 • anceForum in Ukraine on Implementation of Production Certifica tion and Good Manufacturing Practices (GMP) Compli Signing of the Memorandum of Understanding with • - Ms. Oleksandra Kuzhel, Analytical Center “Akademia” rd tor Development of the Public Council under the Min- March 23 • Meeting of the Commission on Pharmaceutical Sec • Chamber Training Seminar: “The Art of Networking”- March 30th •istry of Health Chamber Customs Committee Meeting with par ticipation of the representatives of the State Customs LNG-Terminal National Project Feasibility Study at State Service• of Ukraine •Agency for Investment and National Projects of Ukraine International Conference “Crisis of Eurozone and Meeting with Mr. Oleksiy Mervinsky, Head of the •Implications for Ukraine” •State Service on Personal Data Protection of Ukraine National Committee of the International Chamber of Cabinet of Ministers of Ukraine Meeting with the representatives of the Ukrainian Meeting of the Council of Entrepreneurs under the March 27th • Commerce• (ICC Ukraine) participation of the representatives from the Eco- MARCH MARCH Chamber Fuel & Energy Committee Meeting with XI Annual Chamber Indoor Football Tournament President of Ukraine nomic Reforms Coordination Center mandated by the • March 31st Meeting with Mr. Oleg Sheyko, Adviser to the Vice •Prime Minister - Minister of Social Policy Sergiy Tigipko Ukraine Working Meeting at the State Customs Service of March 28th • Diplomatic • Diplomatic Insiders Club Meeting Insiders Club Meeting Working Meeting in the Parliamentary Committee for Finances, Banking Operation, Tax and Customs Policies

38 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

April 2nd • • - nal Products First meeting of the Joint Chamber and State Tax Service Meeting with Mr. Solovyov, State Service on Medici th of Ukraine Working Group on Tax Loss Carry Forwards April 4 • • Meeting with Mr. Dmytro Polishchuk, Head of the • Meeting at the Kyiv City State Administration •Kyiv Regional Customs Office - April 6th • National Projects Presentation Chamber Business Leaders League Meeting: Fair th mont Grand Hotel Kyiv Housewarming Reception First meeting of the Joint Chamber and State Tax April 12 • Service of Ukraine Working Group on Transfer Pricing Minister of Economic Development and Trade of Ukraine • Chamber “In-Focus” Meeting with Mr. Petro Poroshenko, • Meeting at the Kyiv City State Administration – - April 17th • Meeting of the Chamber Working Group on Person Chamber Knowledge Seminar: “Tax evasion - In al Data Protection with participation of Mr. Volodymyr Light of Court Practice” April 18th - Kozak, Deputy Head of the State Service of Ukraine on • Personal• Data Protection – Meeting of the Chamber Working Group on Person al Data Protection with participation of Mr. Volodymyr Regular meeting of the Public Council under the Personal Data Protection APRIL Kozak, Deputy Head of the State Service of Ukraine on •Ministry of Finance of Ukraine - • Travel with the Chamber – Explore Hidden Trea Chamber PR Club Meeting: “Strategies and Cases of th sures of Georgia! Part II April 7 th Crisis Communications” • April 19 • Chamber Family Event “Easter Egg Hunt” April 10th • Adam Smith Ukraine Investment Summitt (London, Health of Ukraine •UK) - April 19th-20th Meeting of the Public Council under the Ministry of • - Chamber Marketing Club: “Instant Sales vs. Brand •Loyalty” - Chamber Knowledge Seminar: “Distribution Ar rangements and Compliance Issues” - Round Table on Problematic Issues of Representa • tive• Offices of Foreign Companies in Ukraine - Presentation of the Chamber Regional Competitive vice of Ukraine Workshop on Modernization of the State Tax Ser ness Pilot Project at the joint Roundtable organized by the Foundation for Effective Governance, the Chamber • 39 ANNUAL REPORT /2012and Kharkiv Oblast State Administration Open Society Forum www.chamber.ua Calendar of Chamber Events 2012

April 20th • April 26th • - Meeting with Ms. Raisa Bohatyryova, Deputy Prime- Chamber Real Estate Committee Meeting with- Minister, Minister of Health of Ukraine ; Mr. Oleksiy So participation of Ms. Tetyana Symchyshyna, Head of lovyov, Head of the State Service on Medicinal Prod Department on Legal Support of Land Market and As Developmentucts; and Mr. Mykhaylo Brodsky, Chairman of the State •sessment of Land, State Agency of Land Resources Service for Regulatory Policy and Entrepreneurship • Spring Business Forum 2012 in Lviv and Signing the Memorandum of Understanding with the Lviv City Third Workshop for the State Customs Service of •Council – April 26th-27th - rd Ukraine: Customs Valuation and Audit Procedures April 23 • - Chamber “Blossoming Spring” Business Network ing Cocktail Meeting of the Chamber Working Group on Inter April 28th • - nal Trade with Ms. Olga Sokolova, Deputy Head of the- State Inspection on Consumer Rights Protection of Meeting on price registration for medicinal prod Ukraine; Mr. Sergii Kyianychenko, Head of Market Sur ucts under the Ministry of Health of Ukraine ofveillance Economic Division; Development and Mr. andIgor Trade Garbaruk, of Ukraine Director of the Department of Trade Development of the Ministry • APRIL Chamber Roundtable “EURO 2012: Business And •Society Security during the Finals” April 24th - der the President of Ukraine Meeting of the Economic Reforms Committee un • Fifth Session of the National Convention on the EU in Ukraine Working Group “Ukraine – EU: On the Way •to Free Trade Agreement” Union FEG Discussion on EU integration vs. Customs Business Leaders League Meeting in • Fairmont Grand - Hotel Chamber HR Committee Meeting with participation of Dr. Lilia Hrynevych, Advisor to MP Arseniy Yatseni uk and Dr. Yaroslav Bolyubash, Advisor to the Minister of Education, Science, Youth and Sports of Ukraine 40 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

May 3rd • - May 16th • man of the Ukrainian National Committee of the Inter- Meeting with Mr. Volodymyr Shchelkunov, Chair Special Chamber Customs Committee Meeting “New Customs Code of Ukraine: the American Chamber of May 7th - •national Chamber of Commerce (ICC Ukraine) May 17th •Commerce in Ukraine Contribution to its Development” May 11th European Council of the American Chambers of Chamber Knowledge Seminar: “Best Corporate May 10th Commerce (Washington DC, USA) Practices on Compliance with FCPA, UK Bribery Act • •and Ukrainian Anticorruption Legislation” Meeting of the Chamber Personal Data Protection Chamber Knowledge Seminar: “PPP-Projects: Legal Working Group with participation of Mr. Volodymyr Personal Data Protection nd Status-Quo for 2012” Kozak, Deputy Head of the State Service of Ukraine on May 22 • th May 11 • III Professional Conference “Issues of Intellectual Meeting with Mr. Serhii Tymchenko, State Agency - May 23rd •of Land Resources of Ukraine Property Rights Protection and Fair Competition Prin Working meeting on grain inspection issues under May 14th ciples in the Alcohol, Food and Tobacco Industries” - • turalthe State Products Agricultural and Declaration Inspection chaired by Mr. Victor - Kirichenko, Director of Quality Control and of Agricul MAY tionWorking on Price meeting Declaration under of Medicinalthe Ministry Products of Health and of Coopera Ukraine- • with participation of Ms. Yanina Tolkachova, Head of the Sec- Seminar “Central European Automobile Cluster: tion with Pharmaceutical Producers of the Pharmaceutical Sec Lessons for Ukraine” Chamber “In-Focus” May 15th tor Development Department, Ministry of Health of Ukraine Meeting with • Mr. Titenko Minister of Economic Development and Trade of Ukraine • Meeting with Mr. Anatoliy Maksyuta, First Deputy - • Meeting at the Ministry of Social Policy of Ukraine Chamber “In-Focus” Meeting with Mr. Sergiy Titen ko, Head of the National Commission for State Energy •Regulation of Ukraine (NERC) - nershipMeeting Commission of the Working Group on Democracy and •Rule of Law under the US-Ukrainian Strategic Part Chamber English Language Movie Premiere “Dark 41 ANNUAL REPORT /2012Shadows” www.chamber.ua Calendar of Chamber Events 2012

May 24th • May 31st • Chamber Knowledge Seminar: “Tax Evasion - In Chamber Knowledge Seminar: “How to Become a I •Light of Court Practice” •“Blue Chip” on the Ukrainian Stock Market” nternational Conference “GR Congress 2012. Ukraine: Chamber Knowledge Seminar: “Current Issues of an Effective Dialogue between Business and Government”- • Taxation of Representative Offices of Non-Resident Chamber “In-Focus” Meeting with Mr. Mykola Prysyazh •Companies” - nyuk,• Minister of Agricultural Policy and Food of Ukraine tion in Odesa Extraction Roundtable with FEG and Region State Administra Regional Workshop on Shale Gas Exploration and • - Chamber “Welcome Summer” Business Network ing Cocktail May 25th • Conference “Investment Climate in the Agricultural •Sector of Ukraine” Round Table “Natural Gas and Energy Future of MAY Ukraine” organized by the Ministry of Energy and Coal Industry of Ukraine May 28th • Signing the Memorandum of Cooperation with the May 29th •Ukrainian League of Industrialists and Entrepreneurs of UkraineChamber Fuel and Energy Committee Meeting with participation of Ms. Kseniia Liapina, People’s Deputy • Diplomatic Insiders Club Meeting with participation of Mr. Yuriy Kolobov, Minister of Finance of Ukraine Chamber English • Language Movie Premiere “Dark th III European-Ukrainian Energy Day May 30 • Shadows” Meeting with the State Customs Service of Ukraine Leadership 42 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

June 1st • - June 8th • - Meeting with Mr. Sergiy Tigipko, Vice Prime Minis CommerceOfficial Ceremony in Ukraine of Signing the Memorandum of ter - Minister of Social Policy of Ukraine in the frame Understanding with the International Chamber of - work• of Alfa-Jazz Event • Roundtable Discussion “Authorized Economic Op th Chamber COI Event: Alfa Jazz Fest with the Chamber - June 5 erators:• New Opportunities for Business Community” • tional Pharmaceutical Producers in Ukraine Special Chamber Healthcare Committee Meeting Joint Meeting of Associations Representing Interna with Mr. Nesterchuk, Head of the State Expert Center June 12th • June 6th •under the Ministry of Health of Ukraine Chamber Government Faced Knowledge Seminar- Official Ceremony of Signing the Memorandum of- “Improvement of the Pricing System in the Electricity- Understanding with the Committee on Finance and Sector. Implementation of the Incentive Tariff Method Banking, Taxation and Customs Policies of the Verk ology aimed to Increase Activity Efficiency and Renew hovna Rada of Ukraine - •al of the Base Funds of the Electricity Enterprises” – • - - Chamber Customs Committee Leadership Meeting Civic Forum within the Ukraine 2020 Policy Dia tiative with Mr. Sergii Siomka, Director of Department of Or logue Supporting Ukraine’s European Integration Ini -

JUNE • • ganization of Customs Control and Clearance Public Presentation of the State Agency for Invest- XI International Conference “Grain Forum - 2012: ment and National Projects of Ukraine “Drawing the Production, Processing, Trading” – June 6th-8th Investment Image of Ukraine: First Summary of Inves June 7th - • Chamber Joint Health- tUkraine’s Activities” Second Plenary Session of the Domestic and For care and Logistic and of Ukraine Transportation Com- eign Investors Advisory Council under the President mittee Meeting • - Meeting of the Chamber Working Group on Person Personalal Data Protection Data Protection with participation of Mr. Volodymyr Kozak, Deputy Head of the State Service of Ukraine on • - tor Development of the Public Council under the Min- Meeting of the Commission on Pharmaceutical Sec

istry of Health 43 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

June 14th • June 21st • Roundtable Discussion “The New Customs Code of Chamber “In-Focus” Meeting with H.E. Ambassador Ukraine Implementation” at the State Customs Service •Michael Borg-Hansen, Royal Danish Embassy of Ukraine with participation of Mr. Igor Kaletnik, Head - of the State Customs Service of Ukraine and Mr. Vitaliy Chamber “In-Focus” Meeting with Mr. Mykhailo Khomutynnik, Head of the Parliamentary Committee Brodskyi, Head of the State Service of Ukraine for Reg •on ChamberFinance and Healthcare Banking, Taxation and Customs and Customs Committees Policies ulatory Policy and Entrepreneurship Development and with participation of Mr. Oleksii Soloviov, Head of •the State Service of Ukraine on Medicinal Products Joint Meeting with participation of representatives of the State Customs Service of Ukraine, Kyiv Regional June 26th Chamber “Life on Top” Business Networking Cocktail- Customs Office, and State Expert Center under the • •Ministry of Health of Ukraine - Meeting of the Chamber Working Group on Person Personalal Data Protection Data Protection with participation of Mr. Volodymyr Meeting at the Parliamentary Committee on Fi Kozak, Deputy Head of the State Service of Ukraine on nance and Banking, Taxation and Customs Policies chaired by Mr. Valeriy Dombrovsky, Committee’s Chief •of Secretariat JUNE Meeting of the ICC Commission on Green Investments, June 18th •Energy Efficiency and Renewable Sources of Energy Expert Toloka “Energy Inefficiency: Why Are We •Still Warming up the Asphalt?” Joint Logistics & Transportation and Agricultural- Committees Meeting with participation of Mr. Oleksandr Kondrat, Deputy Director of the Department of Econom June 20th •ics and Finance, Ministry of Infrastructure of Ukraine Chamber English Language Movie Premiere “Rock of Ages” Working Group on Personal Data Protection

44 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

July 4th • • - Chamber Fuel & Energy Committee Meeting with Meeting of the Working Group on Healthcare Legisla participation of Mr. Sergiy Titenko, Head of the National tion• Development under the Ministry of Health of Ukraine Commission for State Energy Regulation of Ukraine and - representatives of the Parliamentary Committee on Fuel Meeting of the Sub-Working Group of the Working th and Energy Complex, Nuclear Policy and Nuclear Safety Group for Developing Recommendations in Respect to Fur July 5 • ther Improvement of Legislation on Subsoil Issues headed Chamber Knowledge Seminar: “Technologies to Increase by Mr. Volodymyr Ignashchenko, Adviser to the Minister of •Efficiency and Reduce Costs of Operating Corporate Fleets” Ecology and Natural Resources of Ukraine, Member of the Interdepartmental Commission Responsible for Execution Chamber “In-Focus” Meeting with Mr. Oleksandr th of Production Sharing Agreements •Klymenko, Head of the State Tax Service of Ukraine July 16 • - Chamber “In-Focus” Meeting with Mr. Serhii Biriuk, GroupConference on Personal Call Data between Protection the experts with participation of the U.S. Member of the National Commission for State Regula Department of Commerce and the Chamber Working- tion of Financial Services Markets July 7th vice of Ukraine • of Mr. Volodymyr Kozak, Deputy Head of the State Ser Annual Charitable American Independence Day July 17th •

JULY th th Picnic 2012 July 9 -13 • Joint Meeting of Representatives of the Chamber Tax Committee and the State Tax Service of Ukraine Chamber Summer School “Competitiveness of • Ukraine and Switzerland” July 11th • EconomicRegular Development Meeting of the and Working Trade ofGroup Ukraine on the Draft Law #9443 “On Internal Trade” under the Ministry of • Chamber Food & Beverage Committee Opening Meeting- July 19th - • viceChamber of Ukraine Healthcare on Medicinal Committee Products Meeting with par Meeting between the Ministry of Health of Ukraine ticipation of Mr. Oleksii Soloviov, Head of the State Ser and pharmaceutical producers headed by Mr. Roman July 12th • - Bogachov, Deputy Minister of Health of Ukraine and Mr. Mykhailo Nesterchuk, Head of the State Expert Briefing on the new Concept of Tax System Refor •Center under the Ministry of Health of Ukraine - th mation presented by the State Tax Service of Ukraine vironment Protection July 13 • Meeting with Mr. Voznyi, State Department for En - Meeting of the Working Group on Development of • Draft CMU Resolutions on Pharmaceutical Sector Mat Chamber “Independence Day Picnic After-party” ters under the Ministry of Health of Ukraine Business Networking Cocktail 45 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

rd July 23 • • - Meeting under the Ministry of Health of Ukraine- Meeting regarding Introduction of Voluntary Cer with participation of Ms. Liudmyla Konoshevych, tification for Grain Warehouses and Grain Quality Head of the Pharmaceutical Sector Development De Developmentfor Internal Shipments of Ukraine hosted by the State Service of partment, MoH, Mr. Mykhailo Nesterchuk, Head of the- Ukraine for Regulatory Policy and Entrepreneurship dicinalState Expert Products Center under the MoH, and Mr. Oleksii • Soloviov, Head of the State Service of Ukraine on Me th rd • - US Trade and Investment Council (Washington st DC)– July 30 -August 3 Press Conference “The New Customs Code in Ac July 31 • tion: First Results” with participation of Mr. Serhiy Signing the Addendum to the Memorandum of Siomka, Head of the Department of Customs Control- Understanding between the Ministry of Agricultural and Documentation and Member of the Collegium of Policy and Food of Ukraine and Legal Entities – Grain Mr.the StateIhor Dankov,Customs PwC, Service Chamber of Ukraine, Customs Mr. Dmytro Committee Pol Exporters with Mr. Mykola Prysiazhniuk, Minister of Co-Chairishchuk, Head of the Kyiv Regional Customs Office and Agricultural Policy and Food of Ukraine

• Chamber’s Picnic Health of Ukraine 2012

JULY Meeting of the Public Council under the Ministry of July 24th • EconomicRegular Development Meeting of the and Working Trade ofGroup Ukraine on the Draft Law #9443 “On Internal Trade” under the Ministry of July 25th • - Round Table on the Draft Law #9443 “On Internal Trade” organized by the Ukrainian Federation of Em July 27th •ployers - UkraineMeeting with under participation the State Service of the ofrepresentatives Ukraine for Reg of ulatory Policy and Entrepreneurship Development of

the State Veterinary and Phytosanitary Service, State Agricultural Inspection, and Ministry of Ecology and Natural Resources of Ukraine 46 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

August 1st • - August 22nd • - Chamber “The Dark Knight Rises” English Lan Meeting of the Working Group on Preparing August 3rd guage• Movie Premiere Amendments to the Law on Automobile Transport un August 23rd •der the Ministry of Infrastructure of Ukraine August 4th Meeting under the Ministry of Health of Ukraine • Working meeting with one of the co-authors of the Law of Ukraine “On Foundations of State Language th VIII Chamber Paintball Tournament August 8 • - •Policy” Mr. Ruslan Bortnik vice on Medicinal Products Meeting of the Public Council under the State Ser withMeeting codeine under the Ministry of Health of Ukraine August 10th • devoted to the development of regulation of products August 29th EconomicRegular Development Meeting of the and Working Trade ofGroup Ukraine on the Draft • Law #9443 “On Internal Trade” under the Ministry of Meeting in Economic Reforms Coordination Center August 14th • mandated by the President of Ukraine Second Conference Call between the experts of the- U.S. Department of Commerce and the Chamber Working Group on Personal Data Protection including Mr. Volody AUGUST August 15th •myr Kozak, Deputy Head of the State Service of Ukraine Meeting of the Working Group on Development of the August 16th •Normative Acts under the Ministry of Health of Ukraine - - tionExtended of Transparent meeting Mechanisms of the Working for Private Group Investorson Orga nizational and Technical Preparation for the Introduc- structure of Ukraine to Operate Port Facilities under the Ministry of Infra • August 17th • Chamber Annual Tropical Boat Cruise Chamber Paintball UkraineMeeting of the Working Group on Development of Tournament the Normative Acts under the Ministry of Health of 47 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

September 3rd • - September 12th • - Signing the Annex #1 to the Memorandum of Un- Chamber Knowledge Seminar: “Results of UAPR derstanding between the Ministry of Agricultural Pol Survey: PR Practices of Leading Companies in Ukraine icy and Food of Ukraine and organizations that repre September 13th •2012” - September 4th sents• grain traders Chamber Knowledge Seminar: “Transforming Out Chamber Customs Committee Leadership meeting- sourcing• of the Finance Function” shipwith DevelopmentMr. Oleg Sheyko, Deputy Head of the State Service of Ukraine for Regulatory Policy and Entrepreneur Meeting with Mr. Ruslan Bortnik, Co-Author of the Law • •of Ukraine “On Foundations of State Language Policy” - tor Development of the Public Council under the Min- UkraineMeeting of the Working Group on Development Meeting of the Commission on Pharmaceutical Sec of Normative Acts under the Ministry of Health of • - istry of Health of Ukraine Public Discussion “State Budget and the New Cus toms Code: How to Increase Revenues to the Treasury •and Prevent Price Increases for Imported Goods?” Chamber Agricultural Chamber English Language Movie Premiere “The Committee Meeting September 5th •Bourne Legacy” SEPTEMBER Round Table “Ukraine on the Way to the European •Rules of Electricity Market Operation” September 6th • The Chamber’s 20th Anniversary Gala Celebration- der the President of Ukraine Meeting of the Economic Reforms Committee un September 7th • - ICC Ukraine National Forum “Innovations, Efficien September 11th cy• and Competitiveness” of UkraineChamber Fuel & Energy Committee meeting with participation of Ms. Kseniya Lyapina, People’s Deputy 48 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

September 14th • - September 27th - • Chamber Agricultural Committee Leadership meet cultural Inspection th International Conference “Ukraine: Win with IT” ing with Mr. Yuriy Marchuk, First Deputy Head of Agri September 28 • • Special Chamber Healthcare Committee Meeting with Chamber meeting with representatives of the State participation of Mr. Ruslan Bortnik, one of the Co-Authors of the Law of Ukraine “On Foundations of State Language th Tax Service of Ukraine September 18 • - Policy” and representatives of the State Service of Ukraine - on Medicinal Products, State Expert Center under the Chamber “Expert View” Meeting with Anders Ås Ministry of Health of Ukraine, Association “Manufactures lund, Senior Fellow of the Peterson Institute for Inter of Medications of Ukraine,” and All-Ukrainian Council for September 20th national• Economics, Washington, DC - •Patients’ Rights and Safety - Special Chamber HR Committee meeting with par- Working Meeting with Road Safety Association ticipation of Ms. Maryna Lazebna, Director of Depart ment of Labor Market and Employment of the Minis try• of Social Policy of Ukraine Chamber Traditional “Welcome Back” Business September 21st •Networking Cocktail Chamber Knowledge Seminar: “How to Get Most

SEPTEMBER •Benefit from Your Annual Training Program” Meeting of the Working Group on Development of September 25th •Normative Acts under the Ministry of Health of Ukraine- Working meeting regarding practical implementa tion of provisions of the Memorandum of Understanding between the Ministry of Agricultural Policy and Food of Ukraine and organizations that represent grain traders September 26th • - national Economics Working meeting with Ukrainian Association of Inter Chamber’s 20th • Anniversary Gala Celebration Round Table “Kyiv – Touristic Future” under Kyiv City 49 ANNUAL REPORT /2012State Administration www.chamber.ua Calendar of Chamber Events 2012

October 2nd • October 11th • Public Discussion “Investment and Business Cli- Chamber Hospitality and Tourism Committee meeting with participation of Dr. Michael Hamalij and mate in Ukraine: Whether Substantial Improvements Mr. Artem Sadomov, Kyiv City State Administration; Have• Happened during the Last Six Months?” - Ms. Svitlana Meita and Ms. Tetiana Hryshukova, State •Agency of Ukraine for Tourism and Resorts III Luhansk International Investment Forum – Oc Environment of Information and Communication th tober 11th-13th Expert Seminar “Personal Data Protection in the October 15 - • - 17th V International Anniversary Ukrainian Pharmaceu Technologies (ICT)” October 3rd • tical Forum th US Ambassador’s Forum with Mr. Edward C. Chow, October 16 • International Energy Expert and Senior Fellow in the II Ukrainian Grain Congress •Energy and National Security Program at the CSIS October 18th • October 4th • PPP Expert Center Meeting “Support Your Local Chamber of Commerce Day” Business Networking Cocktail ICC Ukraine BASCAP Initiative meeting October 5th • Roundtable Discussion “Reform of the Taxes and Fees

OCTOBER •Payment System in Light of International Experience” Meeting of the Working Group on Functioning of Grain Market under the Ministry of Agricultural Policy PR Club Meeting October 6th •and Food of Ukraine • Chamber Gourmet Family Day XI Chamber Annual Outdoor Football Tournament October 9th • Seminar on Free Trade Agreement between Ukraine and the European Free Trade Association organized by the Ministry of Economic Relations and Trade of •Ukraine and EFTA Secretariat Chamber English Language Movie Premiere 50 ANNUAL REPORT /2012“Savages” www.chamber.ua Calendar of Chamber Events 2012

October 20th • Chamber CSR Event “Who Let the Dogs Out?” October 24th • Special Chamber Telecommunications Working- Group Meeting with representatives of the National Commission for the State Regulation of Communica •tions and Informatization (NCSRCI) October 25th • Chamber Toastmasters Club Meeting Chamber “Expert View” Meeting with Dr. Valeriy Pyatnitskiy, Ukrainian Government Commissioner for •European Integration Chamber PR Club Meeting: “Social Media as a Tool of Companies Communications” October 26th Chamber “Expert • View” Meeting with - Dr. Valeriy Pyatnitskiy, Chamber Food and Beverage Committee Meeting Ukrainian Government Commissioner for with the Deputy Head of the State Veterinary and Phy European Integration OCTOBER tosanitary Service of Ukraine October 31st • Chamber “Halloween Haunted House” Costume Party

51 ANNUAL REPORT /2012 www.chamber.ua Calendar of Chamber Events 2012

November 1st • November 20th • - Presentation of the National Project “Air Express” – • 2012 Efficient Consumer Response Ukraine Conference nd “Kyiv Ring Road” Feasibility Study November 2 • Chamber “Get to Know the Candidates” BusinessNet November 21st working Cocktail Working Meeting of Industry Associations with • Representatives of the State Expert Center under the Chamber Hospitality and Tourism Committee Meeting rd November 3rd •Ministry of Health of Ukraine November 23 • - Chamber Food and Beverage Committee Steering Com th Chamber “Haunted House” Family Event November 8 • •mittee Meeting - • Presentation on the Best Practices Related to the Chamber Antimonopoly Working Group Meeting Successful Reorganization of the Georgian Food & Bev Meeting Devoted to the Right of Taxpayers operating in Chamber Information and Communication Tech- •erage Industry the Agricultural Sphere for Using Special VAT Treatment in •Terms of Unregistered Land Lease Agreements November 9th nologies Committee Meeting Working meeting with Mr. Mykola Prysiazhniuk, Minister • •of Agricultural Policy and Food of Ukraine Chamber Agricultural Committee Meeting November 11th Chamber meeting in the Ministry of Ecology and Natural • Resources of Ukraine Chamber “Get to Know the th First Chamber Squash Tournament November 12 Candidates” BNC

NOVEMBER NOVEMBER • Working Meeting of Industry Associations with Mr. Roman Bogachev, Deputy Minister of Health of Ukraine, Mr. Mykhailo Nesterchuk, Head of the State Expert Center under the Ministry of Health of Ukraine, and Mr. Dmytro November 14th •Pidturkin, Adviser to the Minister of Health of Ukraine of HealthFirst Meeting of Ukraine of the Working Group on IPR Issues and Access to Medicinal Products under the Ministry November 15th • - Meeting Devoted to New Legislative Initiatives En visaging Tax Rates for Manufacturers and Importers of Packaging• and of Packed Goods 52 ANNUAL REPORT /2012Chamber Tax Committee Meeting www.chamber.ua Calendar of Chamber Events 2012

th November 26 • December 7th • - • Chamber Healthcare Committee Meeting Chamber Marketing Club December 12th Chamber Banking and Financial Services Commit • tee Meeting • Presentation2012 Chamber Annual General Membership Meeting and Competitiveness Partnership Report of UkraineSigning the Memorandum of Understanding with the State Service on Personal data Protection December 19th • November 28th Cocktail • Chamber “St. Nicholas” Business Networking Chamber COI Event Holiday Wine Tasting November 29 th • Chamber HR Committee Meeting

December 2nd • Chamber Experimental Lab for Kids nd December 4 • - Chamber Family Event “Halloween UkraineChamber “In-Focus” Meeting with Mr. Sergiy Tym Haunted House” chenko, Head of State Agency for Land Resources of • Chamber Knowledge Seminar: “Tax Incentives for the IT Industry: Their Essence and Mechanism of NOVEMBER–DECEMBER December 5th •Their Application” Chamber Toastmasters Club Meeting December 6th • - Chamber “In-Focus” Meeting with Mr. Petro Yatsuk, Head of the National Commission for the State Regula •tion of Communications and Informatization Holiday Business Leaders League Meeting 53 ANNUAL REPORT /2012 www.chamber.ua CHAMBER SUCCESS STORIES IN 2012

54 ANNUAL REPORT /20012 www.chamber.ua Chamber Policy Related Success Stories in 2012

n 2012 the Chamber Policy Team worked hard to gen- - erate wins, progress, and engagements in practically Ievery aspect of Chamber policy activities on behalf of • On January 10, 2012 Law #4196-VI “On Amendments to Cer- and in the interests of our Membership. The Chamber suc- tain Healthcare Legislation Regarding Strengthening Control- cessfully advocated for a number of progressive pieces of over Turnover of Medicinal Products, Food Products for Spe legislation and regulations to continue the implementation overcial Dietary the quality Consumption, of medicinal Functional products F andood theProducts advertising and Di of of reforms aimed at attracting investments. This is crucial- medicinesetary Additives,” and medical which contributdevices, wases to signed regulating by the stat Presidente control ly important for ensuring that the Ukrainian economy be- comes more competitive. advertisingof Ukraine. ofThe OTC C hambermedicinal w elcomesproducts. this compromise Law, - considering that its initial text provided for a total ban of DTC bying campaign and high level policy dialogue with key • The Ukrainian extensive decision Chamber makers Fuel resulted and Ener in gythe C announcementommittee lob of two tenders to conclude production sharing agreements • The American Chamber of Commerce in Ukraine is proud (PSA) for shale and natural gas, coalbed methane, crude thatw La #4343-VI “On Amendments to the Final Provisions oil, and condensate on 6,324 square kilometers of Oleska ofw the La of Ukraine ‘On Amending Certain Legislative Acts of Ukraine Regarding Enhancement of Responsibility Chamber Tax Committee field and 7,886 square kilometers of Yuzivska field. Later, Meeting on February 23, 2012, official announcements on “Holding Tenders for Concluding Hydrocarbon Sharing Agreements to be Produced within the Oleska and Yuzivska Fields” were published in the newspaper “Uryadoviy Kur’yer.” On resultsMay 16, of 2012 the Mrtenders.. Eduard The Sta Chambervytsky, Minist has devoteder of Ecology mas- siveand Natureffort alto Rdevelopingesources of recommendations Ukraine, announced and the proposals official about the legislative acts regulating the procedures for PSA tenders, recommendations and proposals that have been taken into account by the Ukrainian government.

55 ANNUAL REPORT /2012 www.chamber.ua Chamber Policy Related Success Stories in 2012

and Part-Time Residence and of Technical Description of

stagefor Violation of consideration of Legislat andion was on signedPersonal by Datathe President Protection’ of - Ukraine.to Postpone The ItsChamber Coming considers into Force” this hasa positive passed move the finalthat their Letterheads and Amendments to the CMU Regulation provides business with additional opportunity to switch to Time#1983 Residence dated De cemberletterheads 26, 2002”developed which according stipulates to intrICAOo the new personal data protection regulation rules, as the ducing new Certificate for Permanent Residence and Part-

Affairsstandards of Ukraine, in the Ukr theainian Chamber and found English that languages. its position Aft waser Law postponed the entry into force of the legislation by six addressing Mr. Vitaliy Zakharchenko, Minister of Internal months, moving it from January 1, 2012 to July 1, 2012. fully incorporated into Resolution #251. • On March 13th, 2012 the Verkhovna Rada passed in the first removal of the provision introducing licensing of import of reading Draft Law #9693 “On Amendments to the Law of • The American Chamber of Commerce in Ukraine welcomes stipulatesUkraine ‘On reduction the List ofof thePermission list of permits Documents required in thefor leasingSphere - orof Esaleconomic of land A ctivity’plots in R stateegarding and themunicipal List of Documents, ownership.” which medicinal products from Draft Law #9654 “On Amendments- towmentary the La Committee of Ukraine on ‘On Industrial Licensing and of RegulatoryCertain Types Policy of E andco - nomic Activity.’” The Chamber has requested that the Parlia - • On March 16, 2012 the President of Ukraine vetoed and re Entrepreneurshipes of medicinal products exclude and such the developmentprovisions fr ofom competition the Draft turnedo t the Verkhovna Rada with his proposals the Law- Lawo due t the negative impact of import licenses on the pric- of Ukraine “On Amendments to the Law of Ukraine ‘On tional obligations arising from its membership in the WTO. Fundamentals of State Monitoring (Control) over Econom in the industry. The provisions also violate Ukraine’s interna ic Activity Regarding Non-Extension of this Law to Sanitary and Epidemiological Supervision and Quality Control of withMedicines.” the Chamber The Chamber position Healthcare as sent toCommittee the Parliamentary welcomes • Thecampaign American succeeded Chamber in the of Csigningommerce of the in Ukrnewaine Customs (Chamber) Code the President’s decision to veto the Law. The veto is in line is o proud t state that on April 19, 2012 its extended lobbying - Committee on Regulatory Policy and Entrepreneurship. of Ukraine (#4495-VI) by the President of Ukraine. In addition, the President signed Law of Ukraine #4496-VI “On Amend • On March 30, 2012 the Cabinet of Ministers published recommendationsing Some Legislative about Acts the with document, Regard to concentrating the Customs Conode cus of- Resolution #251 “On Approval of the Order of Processing, Ukraine’s Adoption.” The Chamber Customs Committee made Making and Issuing of Certificates for Permanent Residence 56 ANNUAL REPORT /2012 www.chamber.ua Chamber Policy Related Success Stories in 2012

- toms post-entry audits and the appeal procedure; declaration - toms valuation; selected classification and origin issues; cus • The Chamber Agricultural Committee welcomes President The document incorporated all these recommendations. Yanukovych’s decision to veto Draft Law #10456 “On Amend ofo goods t customs; and modernization of customs regimes. mentso t Article 3 of the Law of Ukraine ‘On State Support of ofAgriculture the business of Ukr environmentaine’ Regarding for milk Regulation and dairy of producers, the Purchase in- - Price crease for prices, Milk, ”and as it reduce could leadquality to tforo a consumers.significant deterioration • The President of Ukraine signed the Law of Ukraine “On Amending Certain Laws of Ukraine on Mandatory Insur ance of Civil Liability of Vehicles Owners”. The Law almost fully incorporates the Chamber’s proposals. • Continuing harmonization of tax and customs legislation, on- June 7 the Verkhovna Rada adopted Draft Law #10452 “On • A Chamber lobbying campaign resulted in the adoption of Amendments to the Tax Code of Ukraine Regarding Harmo Draftw La #10338 “On Amendments to the Law of Ukraine- nization of Some Provisions of Tax and Customs Legislation.” on Natural Monopolies Regarding Incentive Regulation” on- the interests of major agricultural sector players signed the Junetion to21. the The incentive Chamber tariff suppor methodologyts this progressive that will piece foster of staleg- • Ony Addendum Jul 31, 2012 to the a MemorandumChamber-led gr ofoup Understanding of NGOs representing between islationble investment and belie inves the that electricity the Law sectoris important of Ukraine, for the provide transi security of networks and electricity supplies, and ensure the proper functioning of the domestic electricity market. the Ministry of Agricultural Policy and Food of Ukraine and Chamber Agricultural Committee Meeting • The Chamber welcomes the signing of Law #5077-VI “On legislativeAmendments mechanism to the Land for sellingCode (On and H purchasingolding Land land Auctions),” plots by holdingwith Chamber-proposed tenders with the purposeamendments. of forming The La a wcomplete establishes regu a- latory framework for carrying out land auctions in Ukraine. The Chamber considers the provision of clear and transparent procedures for land auctions as one of the important initial steps towards implementation of land reform in Ukraine and increasing the investment attractiveness of the country.

57 ANNUAL REPORT /2012 www.chamber.ua Chamber Policy Related Success Stories in 2012

- -

Legal Entities-Grain Exporters with Mr. Mykola Prysiazh thee Stat Tax Service of Ukraine (STSU), the STSU has is niuk, Minister of Agricultural Policy and Food of Ukraine. servicessued a clarification of Ukrainian on freight the issue forwarders, of taxation thus of bringingincome fr intoom actualitya joint acti thevity positive agreement legislative and the changes imposi tionthat ofthe VAT Chamber for the • On August 8, 2012 Law of Ukraine #5083-17 “On Amending the TPresidentax Code of of Ukr Ukraine.aine on This the was Stat ea Tgoodax Service compromise of Ukraine solution with Regardo t Administrative Reform Performance” was signed by Tax Committee has advocated for. Service of Ukraine to grant the right for a pharmaceuti- for resolving the outstanding issue of tax loss carry forward. • The Chamber welcomes the decision of the State Customs The Chamber’s proposals for a compromise solution to the tax Ukraine for customs clearance of their goods, regardless of loss carry forward issue were finally incorporated. thecal busiplaceness of registration to choose anofy the autho importer,rized custandoms to cancel office the in • The for Tourism Chamber and w elcomesResorts. theAs the renewal absence of actiof anyvity procedures on the part for of requirement that customs control and customs clearance the Commission on Hotels Categorization at the State Agency- - at the Biokon customs licensed warehouse. categorization creates obstacles that prevent companies in of medicinal products be concentrated in the Kyiv Region thatvesting the inState the Agencyhospitality for Tourismmarket fr andom Resortsusing benefits renew theas stipu hotel lated in the Tax Code of Ukraine, the Chamber has requested Committee Members were taken into consideration and in- • Some of the proposals elaborated by the Chamber Healthcare categorization process before new procedures come into force. - cluded in the current wording of Ministry of Health Order #523- • As Ukraine the C andhamber made F uelrecommendations and Energy Committee regarding has improving actively “Oning the Amendments regulation tono Ministry conducting of H clinicalealth Or trialsder #690 in Ukraine. dated SepThe theparticipated provisions in related developing to the amendments oil and gas sector, to the in T axparticular Code of tember 23, 2009.” This order took force on August 6, amend to avoid mandatory insurance of investigators and regarding settlementOrder includes of the the terms Chamber’s for submission proposals of radditionalegarding theinforma need- in o respect t taxation of subsoil use payments, it welcomes the adoption of Draft Law #10224 “On Amending the Tax - Code of Ukraine on the State Tax Service of Ukraine with tion and arguments to local ethics committees (LECs). It also Regard to Administrative Reform Implementation.” partially includes the Chamber’s request that there be oppor tunities to appeal the decisions of the LECs. • In line with the agreements reached during the Chamber “In-Focus” meeting with Mr. Oleksandr Klymenko, Head of 58 ANNUAL REPORT /2012 www.chamber.ua Chamber Policy Related Success Stories in 2012

- dicinal products containing ethanol as alcoholic drinks after the • Thee Stat Customs Service of Ukraine has stopped defining me • The Chamber welcomes the adoption of Resolution of the Previously, the State Customs Service did not allow medicinal RetailCabinet Prices of Minist for Medicinalers of Ukr Productsaine #794 and Medicinaldated August Devices 13, productsMinistry ofto Hbeealth’s imported intervention in Ukraine, at therequiring Committee’s that all rmediciequest.- 2012 “Issues of Declaration of Changes in Wholesale and- nal products containing ethanol be transferred to the alcoholic toPurchased replace thewith previous State and price Local registration Budget Funds.” mechanism It estab as lishes a more efficient and clear price declaration model drinks category, thus necessitating payment of excise duty. - ments that reloadable prepaid products incorporate a chip stipulated by the CMU Resolution #932. - • In response to the Chamber Letter asking that the require standing between the Ministry of Agricultural Policy and Ukraine, the National Bank of Ukraine stated that the • On September 3 Annex #1 to the Memorandum of Under- be excluded from the Regulation on Electronic Money in ers, including the Chamber, was signed. The Chamber was Food one of of the Ukr initiatorsaine and and organizations major supporters that represent of this agreement. grain trad Chamber proposals will be considered in the final version. - • The Chamber welcomes the adoption of Draft Law #9539 sued a letter to local courts and administrative courts of “On Amendments to the Subsoil Code of Ukraine Regarding • On September 13th the Supreme Administrative Court is Special Permits for Subsoil Use” in the first reading by the “In-Focus” Meeting the priority right to commercial production in cases when its with Mr. Soloviov Verkhovna Rada. The Draft Law foresees that a company gets

pilot production is completed, The Chamber Fuel and Energy Committee supports the Draft Law in its current wording. -

• An extensive advocacy campaign on the part of the Cham- berR ating H an C effectiveommittee mechanism has resulted to promotein the si gningfull, productive, of Law of Ukraineand freely # chosen5067-VI employment “On Employment.” in the framework It provides of for socio- cre economic policy implementation. It also provides for con-

and offers social protection against unemployment. stitutional rights, guarantees the right of citizens to work,

59 ANNUAL REPORT /2012 www.chamber.ua Chamber Policy Related Success Stories in 2012

openness and competitiveness, and believes that it plays important role in moving forward much needed reforms in wasappeal actively with rengagedegard to in the the applicat lengthyion and of complicated the Tax Code pro of- electricity sector of Ukraine. cessUkraine of discontinuing regarding tax all loss court carry cases forward. stemming The from Chamber the is-

about the need to stop the cases. - sue of tax loss carry forward and made recommendations • Draftw La #11299 “On Amending Certain Laws of Ukraine on - Informing the Public about the Content of Genetically Modi - fied Organisms in Food Products” stipulating cancellation of- • The Chamber strongly supports the Verkhovna Rada’s de mandatory GMO labeling for food products if the GMO part in cisiono t pass Draft Law of Ukraine #11120 “On Amend a food product is less than 0.9% was passed in the first read mentso t the Tax Code of Ukraine Regarding Product Sharing- ing on November 20 by the Verkhovna Rada of Ukraine. Agreements’ner in the process Conclusion of PSA and performance. Execution.” It It will allo thusws in providevestors - to the perf necessaryorm their conditions tax oblig forations attracting duly and much in aneeded proper invest man- • On ment No ofvember Certain 28 Resolutionsthe Cabinet ofof Minist the Cabineters of Ukr of aineMinisters officiall ofy ments in the oil and gas sphere, a strategic one for Ukraine. published Resolution #1079 “On Amendments and Abolish October 31, 2012 which the Chamber considers as an impor- Ukraine on Registration of Foreign Economic Contracts” of

• Another important success relates to the adoption of Draft tantThese step Chambertowards liberalization Policy success of the stories agricultural represent industry. more TheLaw Chamber#11213 “On strongly Amendments supports t othis Certain draft, Legislati believingve Athatcts ofit proof of how powerful the joint efforts of the Chamber staff providesUkraine R theegarding necessary Product investment Sharing conditions Agreements in Extheecution.” oil and and our Members can be in solving policy problems, initiat- gas sector and promotes the successful implementation of ing and lobbying for legislative changes, and building a sta- PSAs. The latter are an effective way to achieve the stated gov- ble partnership with state institutions. In 2013 and beyond, ernment goal of reaching energy independence in Ukraine. the Chamber is looking forward to continued cooperation with our Members as well as with the President of Ukraine and relevant decision makers. It will set even more ambitious goals, and we will count on your support and involve- • The Chamber welcomes passing of the Draft Law #10571- “Onlates Mainestablishing Aspects of of a marketElectricity of bilateralMarket Fcontracts,unctioning day- in business community and Ukraine at large. Ukraine”ahead and in balancingthe first r eadingmarket on based November on the 20 principles as it stipu of ment so that they can be accomplished for the benefit of the

60 ANNUAL REPORT /2012 www.chamber.ua Chamber Communications Related Success Stories in 2012

n 2012 the American Chamber of Commerce in Business Ukraine Icommunications. It managed to successfully contin- Ukraine (Chamber) extended its external and internal 2012 the Chamber continued its monthly project Cham- and establish new partnerships, as well as to consistently berJointly News within Business Member Ukraine.Company The Open project Borders represents Media, ina improveue its co-oper the platformation with for informationexisting strategic sharing media among partners its di- response to the rapidly changing Ukrainian economic and verse Membership. political situation, which requires new sources of informa- By implementing a well thought-through communication, as well as business skills and strategies. The Chamber is pleased to contribute to Business Ukraine, an informative electronic publications, the Chamber upholds its reputation astions a top-quality strategy and information by constantl providery expanding for its Members. its list of new provide Chamber Members and other readers with up-to- The Chamber also continues to play the role of an opinion dateand prinformationactical Eng onlish Chamber language policy, publicat advocacy,ion. The and goal lobbying is to - activities. The Chamber also provides other targeted analytical business-related information, comprehensive overviews leader in business and economic issues both within the ex of events, and information about services the Chamber pro- internationalpert community media. and withChamber the wider representatives public. The Cparticipathamber’s- vides to Members. activitiesed in a wide in 2012 range w ofere domestic extensively and co internationalvered in nat ionalevents and to - Business Magazine ally oriented business community of Ukraine. share expertise and make heard the voice of the internation In 2012 the Chamber initiated cooperation with Business MEDIA EXPOSURE Magazine, a highly recognized business-oriented weekly forward received widespread attention from leading nation- newspaper with the motto ‘’Read! Think! Act!” One of the- al andSteps international in moving the media. Chamber’s By prolonging strategic its policy long-lasting agenda publications’ special projects provides the opportunity for win-win co-operation with its partners in the mass media the expert community to talk about hot topics related to do sector and by starting new projects, the Chamber remained theing businessChamber inhas Ukr raisedaine ba ynumber publishi ofng important expert articles matters, in thein- publication’s “Tribune” section. With the help of “Tribune” community operating in Ukraine. - an influential voice of the internationally oriented business cluding tax pressure and the importance of amending the 61 ANNUAL REPORT /2012 Land Code of Ukraine. The Chamber will continue enhanc www.chamber.ua Chamber Communications Related Success Stories in 2012

ing this cooperation to ensure that the voice of international Members receive a specially designed e-publication, Inter- business community is heard. updated throughout the day with a running string of news Delo.ua fax Morning News, as well as have the opportunity to stay Within its strategic partnership, the Chamber is actively on the Chamber website’s home page (www.chamber.ua). Kyiv Weekly - involved as an expert in various Delo.ua publications, which Understanding the importance of cooperation with feature articles from the Chamber’s President and Commit - astee to Leadershi speak aboutps. C hambernew trends Members and personalities have the opportunity in the busi toprovide ness world. the ir expert views and share success stories, as well hasUkraine’s successfully English-language established media effective sources, cooperation in order to prwithop erly interact with the expatriate community, the Chamber Ekonomicheskie Izvestia one of the market’s leaders – Kyiv Weekly. So far, with Kyiv - andWeekly’s more. he Thelp, Chamberthe Chamber is eager has to co strengthenvered a wide this v cooperaariety of- issues,tion in 2013.including healthcare, customs, taxation, HR, logistics, As one of Ukraine’s leading analytical portals, Ekonomi- cheskie Izvestia focuses on various aspects of the country’s contributedeconomic en tovironment. shaping public Experts opinion from withthe American regard to Cevaluham- Ukrainian Journal of Business Law ber ation of of Commerce legislative T axinitiatives and Customs and shared Committees international significantly best practices. The Chamber looks forward to even more produc- The Chamber values the opportunity to publish tive cooperation in future. its relevant Committee updates in a top-level le-

Interfax gal magazine – the Ukrainian Journal of Business andw La – and continued this fruitful cooperation The Chamber is proud to have the privilege of updating visitorsin 2012. and The employees Journal’s ofreaders foreign include embassies managers in Ukraine. The its Membership with the most up-to-date information, all Chamberand lawyers is pleased from leading to have int hadernational the wonderful law firms opportunity as well as to update the international community operating in Ukraine

providedy b one of the Chamber’s strategic partners – the 62 ANNUALInterfax-Ukraine REPORT /2012news agency. Every morning Chamber on the organization’s important policy activities. www.chamber.ua Chamber Communications Related Success Stories in 2012

What’s On ropean-Ukrainian Energy Day, the National Convention on In the current marketplace, an effective networking plat- the EU in Ukraine Working Group “Ukraine-EU: On the Way form is crucially important for building business relation- to the Free Trade Agreement,” the International Conference- ships. The Chamber is happy to be a leader in facilitating “Strategic Areas for Development of Accounting, Analysis and Audit,” the State Department Global Business Confer INFORMATIONence, and the U.S. Chamber SUPPORT Global AmChamPLATFORM Forum. the Chamberbest busi nessis proud netw toorking continue in Kitsyiv. long-lasting An essential and part bene of- being the #1 networking facilitator is proper coverage, and- In 2012 the Chamber brought its cooperation with vari-

ficial cooperation with What’s On magazine. Chamber Busi a completely new level. It provided the Chamber Member- ness Networking events have been extensively covered in ous internationally recognized business event organizers to the magazine’s Kyiv Life section. The Chamber is grateful to conferences, forums, seminars, and other events directly re- What’s On for its continuous support and looks forward to ship not only with the latest information about specialized CHAMBERexpanding cooperation SPEAKS with OUT new ideas. discounts for participation. latedo t the Chamber Policy agenda, but also with significant As a well-regarded speaker at investment events focusing

invited to participate in a number of conferences, roundta- on Ukraine’s competitiveness, the Chamber’s President was

creatingbles, and a summits. better business He shar environmented best practices, in the e xpertise,country, proand- advicemoting onUkraine, Ukraine’s and attractingfurther de newvelopment, investment. with a view to

In 2012 the Chamber was actively involved in the Adam - ergy Independence of Ukraine, the International Confer- Smith Conferences, the US Ambassador’s Forum on the En State Budget and the New Customs Code, the Regional Shale ence “Ukraine: Win with IT,” the Public Discussion of the-

63 ANNUALGas Workshop, REPORT the /2012 III Ukrainian Grain Congress, the III Eu www.chamber.ua Chamber Events Related Success Stories in 2012

Annual Independence Day Picnic Captains of Industry (“COI”) Events The American Chamber of Commerce in Ukraine has - - dependence Day Picnic. The number of people who got to- In 2012 the Chamber organized a range of successful se- gethertraditionally this year organized to spend the this Annual Saturday Charitable with their American family and In nior level Business Networking Events named Captains of AmbassadorsIndustry (“COI”) and Eothervents prominent providing guests CEOs, anCountry opportunity Manag to engageers and inGener high-levelal Directors Networking of Chamber with fellowMember Members Companies, and Americanfriends at IndependenceSpartak Stadium Day speak celebration.s for itself: the Chamber team While hosted enjoying over 5,000 tasty guests, American-style who all became food, a partrefreshing of the an interesting venue. VIP guests while enjoying delicious food and beverages in

anddrinks, let cottthemselveson cand y,dive ice intocream, the and live frperformanceseshly squeezed of juice,well- guests got cozy on the green grass of the stadium’s field - known singers and bands. These included the groovy Tex- AlekseyMex Company Akkerman. and Positive Band, the promising young SolO mina, and of course the famous GORCHITZA and inimitable Chamber “Business Leaders League” Meetings In 2012 the Chamber continued to hold high level business networking events for COIs, senior managers of Mem- ber companies, and diplomats. Members of the Chamber - gether in a high level business networking atmosphere Business Leaders League have the opportunity to get to- cations. while enjoying delicious food and beverages in exquisite lo

Business Leaders League Meeting.

64 ANNUAL REPORT /2012 www.chamber.ua Chamber Events Related Success Stories in 2012

Chamber Family and Sport Events Chamber’s 20th Anniversary Gala Celebration pong, and other sports tournaments for years. These fun but The Chamber has been organizing football, paintball, ping--

andhighly popularity competiti amongve sporting Chamber events Members, are excellent bringing team out build the besting and our netw Membershiporking opportunities, has to offer. andThe theChambery’ve gr ownwould in silikeze to thank Puma Ukraine for its support for all Chamber sport-

Members. They gather parents and kids to play together and celebrateing events. national Family holidays.events are also popular among Chamber

th Chamber Football Chamber’s 20 Anniversary Gala Tournament. Celebration Over 1,000 COIs and business leaders from among the - mats, and celebrities gathered at the NSC Olimpiyskyy to celebrateChamber Membershithe 20th Anniversaryp, senior go ofvernment the American officials, Chamber diplo

the history of the Chamber, the aspirations of the interna- of tionally Commerce oriented in Ukr businessaine. This community, high profile and e ventthe future highlighted prosperity of Ukraine, showing how the Chamber has been part of this journey and how it will continue to be a strong voice for the business community in the future.

65 ANNUAL REPORT /2012 www.chamber.ua CHAMBER INNOVATIONS IN 2012

66 ANNUAL REPORT /20012 www.chamber.ua Policy Innovations in 2012

n 2012 the American Chamber of Commerce in Ukraine (Chamber) introduced a wide range of inno- Presidential Decrees, Cabinet of Ministers resolutions, and Ivative initiatives that add value and help the Members legislativeDFIAC Membershi acts of Ukraine.p’s submissions, transforming them into to be successful and competitive through introduction of - Chamber Tax-Related Initiatives. As a result of the long working events, as well as cutting edge communications and productive cooperation between the Chamber and the platforms.new effective policy related innovations, new exciting net State Tax Service of Ukraine (STSU), in 2012 two Joint Working Groups – on Tax Loss Carry Forward and Trans- Policy Innovations in 2012 fer Pricing to Chamber Membership directly. Domestic and Foreign Investors Advisory Council. – were established to address issues of concern At the request of the Administration of the President of Ukraine, in 2012 the Chamber, together with our Member - • Chamber Tax Committee experts were actively involved in developing amendments to the Tax Code of Ukraine re Company PwC, acted as the Domestic and Foreign Investors garding tax loss carry forward, in close collaboration with Advisory Council (DFIAC) Secretariat, organizing meetings the STSU within the framework of the Joint Chamber-STSU- of the Council’s Working Groups. Working Group on Tax Loss Carry Forward. They nowalso - workedproudly close stately thatwith thethe PTaxarliamentary Code of Ukraine Committee contains on Fi All eight Working Groups continued their activities, which nance and Banking, Tax, and Customs Policy. We can were organized by the Chamber and the Working Group fa- DFIAC cilitators. The Groups met on a monthly basis to treat issues General Meeting of interest to the DFIAC Membership as well as to the larg toer theinvestor Administration community of. Inthe April President, 2012, movingfor the firforwardst time the in DFIAC history, Working Group deliverables were submitted and social reforms agenda. Chamber’s political priorities and the President’s economic Constructive relations have been established with the

of the President of Ukraine. The Center will be one of the principalEconomic government Reforms Coordination agencies reviewing Center under and acting the auspices on the

67 ANNUAL REPORT /2012 www.chamber.ua Policy Innovations in 2012

Chamber proposals that allow including the outstanding amount of negative value that is not repaid within respec- - – On Reducing the Tax Burden on Business and Taxpayer Time for Tax Calculation and Payment tive tax periods during 2012-2015 into an object of taxa tion, carrying it forward to upcoming tax periods until its it wasDuring agreed the tomeeting continue with the Mr cooperation. Oleksandr between Klymenko, the H Chamead of- complete repayment; and including the amount of tax loss thee Stat Tax Service of Ukraine, that took place on March 14 incurred as of January 1, 2012 into the amounts of tax loss more productive engagement and communication between incurred as of January 1, 2011, including amounts of tax ber and the State Tax Service by setting up mechanisms for losses carry forward from 2010 and previous tax years. speed up the process of receiving responses from the STSU, complicated process of discontinuing all court cases the Cpartieshamber agreed Member toship redirect and the letters tax authorities. from Member In or derCom to- • The stemming Chamber from was the acti issuevely engof agedtax loss in thecarry length forwardy and panies with a Chamber cover letter to ensure their prop- and advised about the need to stop them. As a Member of er consideration by the tax authorities. We are glad to say that this mechanism helped clear up a lot of outstanding is- Chamber appealed to the President of Ukraine; the need to sues that the Membership faced during 2012. the Domestic and Foreign Investors Advisory Council, the Chamber Customs-Related Initiatives. The Chamber Ukrainediscontinue and al otherl court stakeholders. cases related As to a tax result, loss oncarr Septembery forward 13thwas al theso discusseSupremed withAdministrative the Head of Court the Stat issuede Tax aService letter toof local courts and administrative courts of appeal with re- theirand the concerns Leadershi andp ofsubmit the Stat questionse Customs about Service customs have agrcleareed- - ancethat C andhamber customs Member valuation Companies issues sho directlyuld be ab tole represento express- tatives of the State Customs Service of Ukraine during gardo t tax loss carry forward issues which provides an op- individual meetings. portunity for tax payers to stop the court cases inChamber question. TaxDuring Committee 2012, accorexpertsding were to the included order of Mr in. Vthealeriy following Khoro During 2012 five such meetings took place. Chamber shkovsky,Working GroupsFirst Vice under Prime the Minist auspiceser of ofUkr theaine, Ministry of Finance: their concerns and resolve problematic customs issues. The – On Reform ChamberMember C Customsompanies Committee, got an excellent continuing opportunity its active to involveexpress- - and of the Tax System of Ukraine, mentation, in close collaboration with the State Customs Service – On Increasing the Effectiveness of Tax Administration, ment in monitoring the new Customs Code of Ukraine’s imple

68 ANNUAL REPORT /2012 www.chamber.ua Policy Innovations in 2012

launched the Online Customs Survey. The goal was to understand what kind of problems business faces due to the new Expert Center will focus on creating PPP success stories and results, the Chamber Customs Committee provided comments will replicate them by providing its expert services to private andCustoms suggestions Code and to findthe State ways Customs to resolve Service. them. Working from the companies and the government during the first stages of pilot- Developing the Ombudsman Concept. PPP projects. PPP Expert Center meetings during its start-up period concentrated on the Center’s concept, structure, and ac The concept’s tion plan for the first months after its establishment. We plan development was initiated by both Chamber Member KPMG to inaugurReformattingate the PPPof the Exper Chambert Center Information in the first half and of Tele2013- establishmentUkraine Ltd. and of the the C hamberB2G Ombudsman itself at the Officebeginning in Ukraine. of 2011 andcommunications the first project Technologies will start shortly Committee. after. Per decision Theand r office’sesulted inmain 2012 task in the will Chamber’s be to serve active as in avolvement pre-court in dis the- pute solution body representing the business community the Chamber Information Technologies Committee and the in disputes with the government. It was developed based on Chamberof the Chamber Telecommunications Board of Directors, Committee as of February were 7,merged 2012 the results of a survey that took place among COIs of Chamber into an Information and Communication Technologies (ICT) Member companies and discussed with the responsible state - Committee. The goal was to achieve more efficiency, orient authorities. Currently the Ombudsman Project Working Group, the organization towards Members’ needs, and concen andwhich discussing includes Bakits functionser & McK enzie,with the Cmainhamber, stakeholders. EBRD, KPMG, We and Smart-Holding, is finalizing the blueprint for the new body project and working towards its possible launch. expectEstablishing that 2013 thewill Publicbe a crucial Private year Partnership for further r efining(PPP) thisEx- pert Center. -

The PPP Expert Center is a new initiative by sev- ingeral a or PPPganizations, projects market namel fory the private Chamber, investors. Gide TheLoyrette new organi Nouel,- Noerr, and the USAID P3 DP project (fhi360), aimed at develop

Chamber zation is being established under the auspices of the Chamber Customs and will unite the main institutions working in the PPP field. It Committee will include legal companies, consultants, financial institutions, Meeting investors, and international and donor organizations. The PPP 69 ANNUAL REPORT /2012 www.chamber.ua Policy Innovations in 2012

trate on priority sectors for the industry and on issues of key importance. The new ICT Committee has embraced the requirements, alcohol production, WTO and the Customs agendas of the former Information Technologies and Tele- Union,six main and dir priceections: controls. food Theysafety, meet waste on ar ecycling,monthly basis.labeling coms Committees. At this point the Committee has elected Introducing the Chamber Banking and Finance News its leadership, established its priorities, and conducted two Bulletin. This publication was designed specially to meet meetings devoted to a number of ICT issues. Rebranding the Hospitality and Tourism Committee. Committee and to serve as an information platform. The Based on a decision made at the Chamber Board of Direc- Bulletinthe needs is ofissued the C periodicallyhamber Banking and includesand Financial reviews Services of recently adopted legislation and government initiatives affect- - tors meeting on February 7, 2012, the Chamber Travel and tool for the Members of the Committee, news bits are fol- Tourism Committee was rebranded as the Chamber Hospi- inglowed the by financial short analytical sector. To notes mak eand such insights a bulletin evaluating a valuable the tality andindustry. Tourism Committee. The point is to emphasize the impact (positive/negative) of these legal acts and initiatives Committee’sEstablishing involvement the Chamber in the Food development and Beverage of the hoComspi- mittee. and Beverage Committee. The Committee is unique in its on the financial sector. These analytic materials are kindly structure, yIn consistingJul 2012 theof aC hamberSteering estab Committee,lished the the new Commit Food- provided by leading Chamber-Member law firms.

- tee leadership, and six issue-specific Working Groups. The Committee’s objective is to serve as a “focal point” for lobby fosteringing opportunities a meeting and and for discussion confronting platform specifi cfor issues Committee on the Members;part of its Members, discussing including: and approving pursuing decisions strategic made priorities; by the - ing a comprehensive and consistent lobbying campaign re- gardingWorking important Groups; de issues;veloping and r providingecommendations; a meeting maintain and discussion platform for Committee Members so as to encourage constant circulation of industry-related information (news, Chamber Banking legislation, etc.) and allow them to make grounded decisions and Financial Ser- vices Committee Meeting and identify potential threats. The Working Groups work in 70 ANNUAL REPORT /2012 www.chamber.ua Chamber Communications Innovations in 2012

- Membership Communications platform with a tion is sent to the entire Membership to inform them about Tviewhe C hamberto providing continues Members to shape with themore Chamber’s relevant most popular E-publications. The daily morning publica information in a less time-consuming format. To that end, - in 2012 the Chamber focused on developing new targeted the volvement most si ingnificant policy makingchanges and and in inno defendingvations thein Ukr interestsainian economicof the Membership. and political life and to show the Chamber’s in possible for every employee of Chamber Member Compa- e-publicationsnies. A number to of mak newe the e-publicationsm as efficient were and infintroducedormative asto Weekly: keep various groups of employees updated with the most relevant information, intended precisely for them. Chamber Weekly Bulletin (Monday) - - In 2012 the Chamber also started to actively use Social • – The main infor - mational E-publication issued by the Chamber. The Bulle - tin provides information about the benefits of being a part Media tools to serve the organization’s strategic goals, in of the Chamber: Committee Meetings, Chamber Business cluding enhancing the Chamber’s brand awareness, pro andNetworking much more. Cocktails, This publicationEnglish Language also provides Movie PrMembersemiers, mission,moting the vision, Chamber’s and international role as the bestaspirations, Business and Netw highlightorking- news,Family and Events, information sports competitions, about Partners “In-F eventsocus” and Meetings, confer- facilitator,ing key Chamber educat ingSuccess a wider Stories audience related ab toout moving the Chamber’s the pol- ences that the Chamber supports. icy agenda forward. COI Executive Summary (Wednesday) THE NEW STRUCTURE OF MEMBERSHIP • at providing its audience with updates on the– The most exclusive impor- PUBLICATIONS Chamber’s Captains of Industry E-publication. It is aimed both advocacy and lobbying and business networking. Commerce in Ukraine. tant Chamber activities in brief and easy to grasp form – List of E-publications issued by the American Chamber of Advocacy and Legislation Update (Thursday) Daily: • Chamber Members interested and/or actively engaged– This in Interfax-Ukraine Front Page ChamberE-publication Policy se activitiesrves as communicatabout currentions advocacy tool to and inf ormlob- bying initiatives; ongoing policy activities; communication • – Introduced in 2010, the Interfax FrontPage quickly became one of the Chamber’s 71 ANNUAL REPORT /2012 www.chamber.ua Chamber Communications Innovations in 2012

with state authorities; success stories; and general overview Ad-hoc:

Policy Flash usefulof eng agementsway to receive of the insight Chamber and Industryearly warnings and Sect thator maySpecific im- - pactCommittees Chamber and Member Working Companies; Groups. This to keep E-publication track of actual is a v andery • cy activities. – This E-publication is designed to inform draft legislation in different branches of the economy; to share Members about significant achievements in Chamber Poli information and to join efforts in successfully addressing spe- Meeting Highlights

• – A report on Chamber meetings with cificMonthly: issues that target the business community in Ukraine. stateBanking officials. and Finance News Bulletin

Policy Tracker - • aimed at informing interested Chamber – DeMemberssigned f orabout the Chamber Banking and Financial Services Committee and- • – First issued in September 2011, and dis ments from active players on the market. Issued on the day engagementstributed on the of fir activest working Chamber day Members,of the month. and It coverage reports on of specific of the Committee information meeting. in the B&F sphere, with valuable com the effChamberorts of thein different Chamber media Policy during Team, theexpert past opinion, month. the ChamberLIVE Membership Card Offers discounts provided by Chamber Members within the Chamber • Membership. – Issued two hours before the event that • – This E-publication contains all the will be broadcasted live. Distributed among the General participants can also be found here. Membership Card Offers Membership Update serveDiscount as greatProgram. promotional All the tasty tools new fors Chamberfrom our GourmetDiscount CProlub- - - • – An informational digest to inform the GenerChamber,al Membershi but not morep about often new than additions once a month. to the Cham gram participants and for Gourmet Club participants. It is dis ber Family. Issued every time at least 10 companies join tributedPartners to Publication subscribers on the first Friday of the month. - Chamber Upcoming Business Events - cally for Partners of the American Chamber of Commerce in tion is designed to inform all interested Chamber Members • Ukraine. It will include – theThe most publication recent isdevelopments designed specifi and • about Chamber Member Companies events. – This ItE-publica includes success stories from Chamber Partners, an Infosupport Sec- Conferences supported by the Chamber and Members tion, and Partners News and Chamber Committee reports.

Events. 72 ANNUAL REPORT /2012 www.chamber.ua Chamber Communications Innovations in 2012

Annual Publications Annual Report. The Chamber Annual Report is an elec-

activities, progress, and success during the past year. It discussestronic publicat Chamberion desi advocacygned tando summarize lobbying activities,the Chamber’s committees and working groups, networking and family events, publications and information support, the discount card

- program and Gourmet Club, and much more. Membership Directory and Country Profile. The Cham- tailsber Membership and descriptions Directory of each and Member Country company, Profile isa valuablea highly sought after Membership benefit that provides contact de the Chamber and the business and diplomatic community activeCountry in PrUkraine.ofile se Itction, is available and other in bothuseful a high-qualityinformation printabout-

decision makers at leading international and local Member Companiesed version and who a useoperater-friendly in Ukraine, electronic including edition. the High-level largest strategic and institutional investors in Ukraine, comprise the readership of the Chamber Membership Directory. The

US, diplomatic and donor missions, Ukrainian governmental authorities,audience al soand includes Ukrainian key ambassadors decision mak abroad.ers in the The EU Mem and- bership Directory also contains a comprehensive Country -

areas,Profile as Section. well as The of materialCountry Prbyofile Chamber consi stsMembers of analytical who arear ticles that relate to specific economic and business interest

experts in their fields.

73 ANNUAL REPORT /2012 www.chamber.ua Chamber Events Innovations in 2012

Networking Summer with the Chamber -

Summer is the slow season businesswise. To do some- winnersber website were (“Find identified 11 dogs weekly in the via pictur lottery.e,” “Find The 20Picnic dif thing about that, the Chamber created a special contest ferences between the pictures,” “Solve a puzzle”). Ten- ing the attention of the entire Membership and helping - raiseGames more served money as a forgreat charity. promotion for the event, draw courageto reward Chamber the most Members active netw to orkers.maintain The their “Netw contactsorking andSummer keep within touch the withChamber” business event partners was designed by participat to en- ing in all the Business Networking Cocktails the Cham- -

ber organizes (Chamber “Life on Top” Business Net Annualworking Boat Cocktail, Cruise). Chamber Those “Independencewho enjoyed at Da leasty Picnic two ofAfter-party” these events Business this summer Networking were invitedCocktail, to takeChamber part - ness Networking Cocktail to compete to win two return ticketsin a special to any lott destinationery during from the “WUkraineelcome International Back” Busi Airlines. The chances were good for all the contestants, -

but the odds were obviously in favor of Tatiana Klymen- tailschuk areof Firstworth R ealtyinvesting Brokerage. time in. Her victory once again proved that the Chamber’s business Networking Cock Special Interactive Picnic Games The American Independence Day Picnic is the major Chamber event each year, and is always very well attended. This year the Chamber found an innovative way to attract guests, giving away free tickets to the event. Chamber Members could participate in online Interac- Chamber “Independence Day Picnic After-party” BNC -

74 ANNUALtive Picnic REPORT Games, /2012 which were available on the Cham www.chamber.ua UKRAINIAN GOVERNMENT RELATIONS

75 ANNUAL REPORT /20012 www.chamber.ua Ukrainian Government Relations

worked diligently to establish new relationships and devel- philosophy and operations in Ukraine have always The American Chamber of Commerce in Ukraine’s and legislative branches. The Cabinet of Ministers, numer- only in a prosperous, strong and favorable environment is op existing ones with top-ranking members of the executive been guided by a simple symbiotic relationship: Rada committees, the Administration of the President of customers, vendors and partners. This in turn leads to in- ous ministries and state committees, selected Verkhovna business able to grow, hire more employees, and find new association works closely with all of them to address issues to the host country and its people. thatUkraine, generate the R theegional greatest Stat econcern Administrations among the – Membership.our business formation and technology dispersion and greater benefits - ters through active and targeted advocacy and lobbying ef- priorities focused on identifying further opportunities to forts.The Chamber has been able to positively influence mat strengthenIn 2012 thethe UkrainianChamber’s economy advocacy and and business policy climate.activity Throughout the year the Chamber Membership had a wide variety of opportunities to engage in a positive dialogue with key decision makers in the Ukrainian government via They were included but not limited to: competition;• Increasing Ukraine’s competitiveness; • Energy independence through equal access and fair- tural industry based on free market principles. In-Focus Meeting with • Developing a more efficient and competitive agricul Mr. Poroshenko, Minister The Chamber, along with its Board of Directors and its of Economy of Ukraine Member Companies, united with relevant government

agencies, with the private sector, and with experts from isnon-governmental to contest trends orthatganizations create disadvantages to develop and for strbusinessesengthen positive trends in Ukraine’s business climate. Another goal In 2012 the Chamber Board of Directors and Policy Team and foment a non-level playing field. - cials, ensuring that the Membership receives value-added, tangible,continued and their successful proactive advocacy dialog with solutions. Ukrainian The statChambere offi

76 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

- Ms. Iryna Akimova - dential Administration Chamber Committee and Working Group meetings, Gen – Mr. Andrii Goncharuk, Fir, stAdviser Deputy to H eadthe ofPresident the Presi of eral Membership meetings, “In-Focus” and “Insiders View”- - meetings, “Government Facing” events, innovative tools like vestors– Advisory Council under the President of Ukraine the “Insights into Investing in the Regions with the Cham Ukraine, Mr. Ex Vitaliiecutive Khomutynnik Secretary of the Domestic and Foreign In ber”In series 2012 andthe theChamber Diplomatic participated Insiders’ inClub. many important events and hosted meetings with many Ukrainian and for- Policies– , Head of the Parliamentary CommitteeMr. Sergiy on Finance Titenko and Banking, Taxation and Customs

eigne stat officials and experts. Below are just some of the – Mr. Grigoriy Kaletnik, Head of the National Commission officials and VIPs who addressed and communicated with for State Energy Regulation of Ukraine the ChamberMr.Viktor Membership Yanukovych and, President leadership: of Ukraine – Mr. Anatolii Kinakh , Head of the Parliamentary Mr. Mykola Azarov, Prime Minister of Ukraine Committee on Agricultural Policy and Land Relations, - – Mr. Valerii Khoroshkovskiy - trepreneurs– , People’s Deputy of Ukraine, ter– of Ukraine PresidentMr. Valeriy of the UkrKonovaliukainian League of Industrialists and En – Mr. Borys Kolesnikov , First Vice Prime Minis Mr. Anatoliy Horbatiuk – Ms. Ksenia Liapina , People’s Deputy of Ukraine – Mr. Serhii Tigipko , Vice Prime Minister of Ukraine – Mr. Ihor Kaletnik , People’s Deputy of Ukraine - Minister– Minister of of Social Infrastructure Policy of Ukraine of Ukraine toms– Service of Ukraine , People’s Deputy of Ukraine – Mr. Yuriy Boyko , Vice Prime Minister of Ukraine –- – Mr. Oleksandr Klymenko, Head Chairman of the State Cus- dustry of Ukraine vice of Ukraine – Mr. Yuriy Kolobov, Minister of Energy and the Coal In – Mr. Leonid Kozachenko, Chairman, Head of the of theStat Councile Tax Ser of Mr. Mykola Prysyazhniuk, Minister of Agricultural – , Minister of Finance of Ukraine – Mr. Vadym Kopylov - – Mr. Petro Poroshenko - nomicEntrepreneurs Development under and the Trade Cabinet of ofUkraine Ministers of Ukraine opmentPolicy and and Food Trade of Ukraineof Ukraine – Mr. Anatolii Maksiuta, First Deputy Minister of Eco- – Mr. Kostiantyn Gryshchenko, Minister of Economic Devel- nomic Development and Trade of Ukraine fairs of Ukraine – Mr. Valeriy Pyatnytskiy, First Deputy Minister of Eco – , Minister of Foreign Af Integration – , Commissioner for European

77 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

Ms. Raisa Moiseyenko Mr. Mykhailo Tevkun Ukraine – Mr. Volodymyr Ignashchenko, First, AdviserDeputy toMinist the Miniser of- – Ms. Galyna Pahachuk, Director,y Ministr of the of State Finance Debt andof Health of Ukraine - – - nance– of Ukraine tionter of of E Productioncology and NatSharingural RAgreementsesources of Ukraine, Member of InternationalMs. Liudmyla Financial Konoshevych Policy Department, Ministry of Fi- the IntMr.erdepartmental Mykhailo Brodskyy Commission Responsible for Execu Ukraine– , Head of the Pharmaceu – Mr. Oleksandr Potimkov, Head of the, State Committee tical SectMs.or Natalya Development Lytvynenko Department, Ministry of Health ofof Ukraine for Regulatory Policy and Entrepreneurship - neurship– , Deputy Head of the, State – Mr. Anton Lipukhin , Deputy Head of the Depart CommitteeMr. Oleksiy of Ukr aineMervinskiy for Regulatory Policy and Entrepre ment of Licensing and Certification of the State Service. Ukraine on Personal Data Protection – , Deputy Director of the Legal – Ms. Lilia Olesiuk , Head of the State Service of- Support and International Relations Department - Head of vice on Personal Data Protection of Ukraine the Medicine Turnover Legal Support Section of the State – Mr. Volodymyr Kozak, First Deputy Head of the State Ser- Expert Center under the Ministry of Health of Ukraine vice of Ukraine on Personal Data Protection – Mr. Sergiy Siomka, Director, Deputy ofH eadthe ofDepartment the State Ser of

State– Customs Service of Ukraine, State Customs Service of Ukrainethe Organization of Customs Control and Clearance of the Mr. Sergii Gila, Director of Customs Payments Depart- ment, State Customs Service of Ukraine – Mr. Yaroslav Prokopenko, Deputy Director of the De- partment of Struggling against Smuggling, Corruption and Risk– Analysis Activity, State Customs Service of Ukraine Mr. Sergii Djigalov Chamber In-Focus Meeting – , Department of Classification of with Mr. Igor Kaletnk, of Ukraine Head of the State Customs GoodsMr. and Sergey Foreign Bedash Economic Activity, State Customs Service Service of Ukraine

– , Ministry of Finance of Ukraine 78 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

Mr. Ivan Klymovych - Mr. Oleksandr Kondrat, Deputy Director of the De- ing and Oversight Division of the Department of Real Sec- - – , Head of the Methodology of Pric structure– of Ukraine Trade of Ukraine partmentMr. ofDenis Economics Bazilevych and Finance, Parliamentary of the Ministr Developmenty of Infra tor DeMr.velopment, Igor Garbaruk Ministr,y Directorof Economic of the De velopmentDepartment and of - - tute.– ment– and Trade of Ukraine ProgramMs. Daryaand Pr Revinaofessional Lobbying and Advocacy Insti- Trade Mr. De velopmentDmytro Petukhov of the Ministr, Directory of of E theconomic Department Develop of - Automobile Transport of the Ministry of Infrastructure of – , Head of the ICC Ukraine’s Commis Ukraine.– sion forMr. E cologicalDmytro IgnatievInvestments and Alternative and Renew Mr. Dmytro Polishchuk Internationalable Energy Sources Cooperation – Ms. Nataliya Hotsyanivska,C IC Ukraine Vice President for – Mr. Mykola Dmytriiev , Head of the Kyiv Regional ControlCustoms Department Office, State Customs Service of Ukraine – Ms. Olga Sokolova , Department of Taxation- – Mr. Oleg Kobelkov , Deputy Head of the Market- tionof Legal on Consumer Entities Rights Protection of Ukraine tection and Advertising Department. – Mr. Sergii Kyianychenko, Deputy Head of the State Inspec- – Mr. Ivan Klymovych, Acting Head of the Consumer Pro- lance Division, State Inspection on Consumer Rights Protec- ing and Oversight Division of the Department of Real Sec- tion– of Ukraine , Head of Market Surveil – , Head of the Methodology of Pric Mr. Volodymyr Yegorov, Colonel of the State Border Trade of Ukraine Service of Ukraine tor DeMr.velopment, Oleksandr Ministr Nohachevskyy of Economic Development and – Mr. Borys Leonov, Senior Consultant of the Main Of- - frastructure– , Vice President of the of Ukraine– FederationMr. Dmytro of Franchising Demydovych Development,, Deputy H Ministerospitality of and Infra In- fice ofMr. the Sergiy Anti-Terrorist Korniyenko Center under the Security Service- structure of Ukraine vision of the Aviation Safety Condition of Airports and Com- – Mr. Volodymyr Sevriukov, Director of the Depart- – , Head of the Office for Super ment of State Policy on Sea and River Transport of the Min- of the State Aviation Service of Ukraine istry– of Infrastructure of Ukraine mercialMr. Maint Dmytroenance Nikitin Entities, Aviation Safety Department - ministration– on Rail Transport, First of De Ukraineputy Head of the Central Office of the Paramilitary Security Service of the State Ad

79 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

Ms. Tetyana Symchyshyna velop the economy. It does this by advocating for comprehensive legislative and regulatory reform that will make – , Head of the Department for LegMr.al ViktorSupport Kirichenko of the Land Market and Assessment of country. This will help Ukraine attract much needed domes- andLand, of State Agricultural Agency Productsof Land Resources and Declaration. of Ukraine. ticUkraine and foreign more competiti investment.ve and into an innovative European – Mr. Yuriy Pysarchuk , Director of Quality Control on both the national and regional levels, to facilitate new Customs– Service of Ukraine , Head of the Department of In 2012 the Chamber utilized different advocacy venues Goods Mr. Classification Andriy Ocheret and Foreign Trade Control, the State national business environment and improving the current Declaration, the State Customs Service of Ukraine legislativeinvestment framework. in the Ukrainian market by rationalizing the – Mr. Daniil Andreev , Head of the Section of Goods- The Chamber is an active Member of the Committee of Economic Reforms under the President of Ukraine and – Mr. Valeriy Dombrovsky, Deputy, Chief Head of of the the Secretariat Customs Du of ties Department of the Kyiv Regional Customs Office - economy. The Chamber has engaged interested Chamber – supports comprehensive reform of all spheres of Ukraine’s the CommitteeMr. Proskuryakov on Finance and Banking, Taxation and Cus- ogytoms and Policies Mineral of theResources Verkhovna of Ukraine Rada – Mr. Vitaliy Bashinskyy, Head of the State Service of Geol

Service– of Ukraine , Head of the Department of VeterinaryMs. Angela Medicine, Prigozhina State Veterinary and Phytosanitary-

– Mr. Ruslan Bortnik , Senior Financial Sector Spe- cialist, World Bank Office in Ukraine – ,o Assistant t People’s Deputy Kole snichenko,The American Head of Chamber the Public of Or Commerceganization “C inommon Ukraine, Goal. as” an - tional investors, those that have committed a majority of Chamber In-Focus Meeting theorganization foreign direct representing investment the into lar gestthe market strategic place, and remains institu with Mr. Prysyazhnyuk, Minister of Agrarian Policy committed to helping the national government to fully de- of Ukraine

80 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

Member Companies in the Regional Economic Develop- ment Working Group, which has allowed for providing supervision of Mr. Igor Garbaruk, Director of the Depart- comments and feedback on many important reforms. A #9443ment of “On Trade Internal Development Trade.” The of theevent Ministry was he ofld Economicunder the number of useful initiatives are being implemented under Development and Trade of Ukraine. the auspices of the Domestic and Foreign Investors Advi- sory Council (DFIAC) under the President of Ukraine, of with Ms. Raisa Moi- which the Chamber is a proud member. seyenko, First Deputy Minister of Health of Ukraine, In 2012 the Chamber became a Member of the Public andOn representatives January 20 the of Cpharmaceuticalhamber met associations (AIPM, Council under the National Commission for the State Regu- APRaD) and business associations. The key topic was a let- - tinued its active participation in the Public Councils under regarding the obligation to register medical devices that are lation of Communications and Informatization. It also con- supplementster o sent t the to Ministr medicinaly of products.Health Stat e Expert Center (SEC)

Statethee Stat Service Customs of Ukraine Service on Medicinalof Ukraine, Products. the Ministry of Fi - nance of Ukraine, the Ministry of Health of Ukraine, and the Below is a brief description of events that the Chamber levelOn working February meeting 7, 2012 with the Mr.Amer Valeriyican C hamberKhoroshkovsky, of Com either hosted or in which it was instrumental as an active Ministermerce in ofUkr Financeaine was of pleasedUkraine t,o members host an eofxclusive the Chamber senior participant. Board of Directors, members of the diplomatic community, and representatives of the Ministry for Foreign Af- American Chamber of Commerce in Ukraine, along with fairs. Participants discussed the recent challenges that the Throughout the year Mr. Jorge Zukoski, President of the- internationally oriented business community operating in sentatives of the government of Ukraine, participated in Ukraine is facing. They also discussed strengthening the Members of the Economic Reform Committee and repre - tive cooperation in future. Committee meetings chaired personally by President Viktor partnership with the Ministry of Finance to ensure produc Yanukovych. - ing of the Working Group on Improvement of Provisions Meeting with Mr. Igor Kaletnik, Chairman of the State of theOn JanuaryDraft Law 17 “Onthe C Internalhamber tTrade.”ook part in the first meet- CustomsOn February Service 13 of theUkraine Chamber. It was arr attendedanged an by “In-F Chamberocus” Member Companies and representatives of the diplomatic The Group was es community and took place on the premises of the State Cus- tablished under the auspices of the Ministry of Economic Development and Trade of Ukraine to improve Draft Law 81 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

toms Service of Ukraine. Participants discussed outstanding customs clearance. To ensure better customs representa- issues pertaining to the adoption of the Draft Customs Code, tion Mr. Sergiy Siomka, Director of the Department of - the Organization of Customs Control and Clearance of - the State Customs Service of Ukraine; Mr. Sergii Gila, Di- thee Stat Customs Service’s plans for 2012, the customs val rector of the Customs Payments Department; Mr. Yaro- initiatives.ue database, electronic declarations, the new fines for vio slav Prokopenko, Deputy Director of the Department lations of customs rules, and the Chamber’s proposals and of Struggling against Smuggling, Corruption and Risk On March 20 the Chamber was pleased to host an “In- Analysis Activity; and Mr. Sergii Djigalov, Department of Focus” Meeting with Mr. Kostiantyn Gryshchenko, Min- Classification of Goods and Foreign Economic Activity ister of Foreign Affairs of Ukraine. Addressing the Cham- joined the meeting.

the Chamber Membership in changing the picture of what - Ukraineber Membership, is all about, Mr . includingGryshchenko its economic emphasi zedprospects the role and of ing with Mr. Petro Poroshenko, Minister of Economic De- its business opportunities for those who would like to be velopmentOn April 12th and theTrade Chamber of Ukraine. organized an “In-Focus” meet part of the changing environment here.

Personal Data Protection took place. The meeting was con- ductedOn April with 6 thea meeting participation of the Cofhamber Mr. Volodymyr Working Gr Kozak,oup on Deputy Head of the State Service of Ukraine on Personal Data Protection. It was devoted to developing a relevant Corporate Code of Conduct.

Pursuing the goal of developing and improving Ukrai- nian customs legislation and advocating on behalf of the broad Chamber Membership, on April 11 Chamber Presi- dent Jorge Zukoski and the Chamber Customs Committee Leadership met with Mr. Dmytro Polishchuk, Head of the Kyiv Regional Customs Office, to discuss the important In-Focus Meeting with issues that Member Companies are currently facing with Mr. Gryshchenko

82 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

On April 26 the Chamber took part in the Spring Busi- ness Forum 2012 in Lviv. The main focus of the event was Ukraine (Chamber) signed a Memorandum of Cooperation investment tools at the local level, with a separate discus- Ony Ma 28 the American Chamber of Commerce in- sion of public-private partnership opportunities in Ukraine. Mr. Anatolii Kinakh, Mr. Jorge Zukoski, Chamber President, chaired the dis- Presidentwith the Ukr ofainian the ULIE, League and of Mr. Industrial Jorge Zukoski,ists and PresidentEntrepre cussion platform “Public-Private Partnership: Is It ofneurs the (ULIE).Chamber Dur, developeding the cer aemony common vision for pushing Possible in Ukraine?” It was attended by the main stake- the common policy agenda forward. The parties agreed that the Memorandum is just one manifestation of the long-term communities. common aspirations to build fruitful bilateral relations and holders representing the business, expert, and diplomatic that it creates a strong institutional base for deeper cooperation. Mr. Sergiy Titenko, Head of the National Commission for StateOny EnergyMa 15 Regulationthe Chamber of held Ukraine an “In-F (NERC)ocus” .Meeting with first meeting of the Working Group under the Ministry of Finance of Ukraine, established On May 24, 2012 the American Chamber of Commerce Ony Ma 28 the - in Ukraine held an “In-Focus” meeting with Mr. Mykola Prysyazhnyuk, Minister of Agricultural Policy and Food Nationalaccordingo Action t the Plan, subse wasction held. “De Itregulation, included the Busi participationness Devel of Ukraine. - ofopment, representatives and Administrative of the Ministry Services of R Financeeforms” of Ukraine,the 2012 the State Customs Service of Ukraine, the Ministry of responsible CEOsfor different of companies agriculture on the sub-sectors Chamber Agricultur attended. Justice of Ukraine, the Chamber, and other business as- Inal Canommittee open and w erefocused invited dialog, and aparticipants number of discussedstate officials the sociations and research institutes. most important issues for the development of the industry,

weak points of the current licensing system that lead to the Memorandum of Understanding with the Verkhovna including grain production issues, shipment and exports, RadaOn CommitteeJune 6 the onChamber Finance he andld a Banking, meeting Taxationand signed and a the process of bringing national practices and procedures Customs Policies. The ceremony took place within the inefficient functioning of the agricultural and food sector, framework of the regular Committee Meeting attended by People’s Deputies of Ukraine, the Ministry of Finance of into accordance with European standards, and more. Ukraine, the State Tax Service and other central executive bodies. Opening the event, Mr. Vitalii Khomutynnik,

83 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

the Committee’s Head, noted that the Committee he chairs na Rada, chaired by Mr. Valeriy Dombrovsky, Chief of is interested in close cooperation with the Chamber, consid- the Secretariat of the Committee. Mr. Valeriy Pyatnyts- ering its important role in creating a favorable investment kiy, Commissioner for European Integration, and repre- climate in Ukraine. - participated in the roundtable discussion “Authorized sentatives of the Ministry of Finance were also present. The EconomicOn June 8Operators: the American New Chamber Opportunities of Commerce for inBusiness Ukraine (forprovisions Bringing of theDraft Import Law #9241-d Duty Rates “On into Intr Complianceoducing Amend with Community” at the Ukrainian Chamber of Commerce and mentso t the Law of Ukraine ‘On Customs Tariff of Ukraine’ Industry. The event was devoted to the implementation of reading were the focus of discussion. WTO Criteria)” adopted by the Verkhovna Rada in the first Customs Code of Ukraine. Chamber was pleased to hold an “In-Focus” Meeting with the Authorized Economic Operators concept under the new H.E.On Michael June 21, Borg-Hansen, as a recap of theAmbassador Danish EU ExtraordinaryPresidency, the Ukraine and the Ukrainian National Committee of the and Plenipotentiary, Royal Danish Embassy. Addressing InternationalOn June 8 Chamberthe Amer icanof Commerce Chamber ofin UkraineCommerce (ICC in the Chamber Membership, the Ambassador highlighted the Ukraine) signed a Memorandum of Cooperation. The document creates an institutional base for bilateral coop-

th the Chamber Customs Committee represent- ederation, by Co-Chairs providing Mr. certain Igor specificDankov, fields PwC, for and joint Mr. activity. Alexandr GutsalOn June, Carlsberg 12 Ukraine, met with Mr. Sergii Siomka, Di- rector of the Department of the Organization of Customs Control and Clearance, as well as with a number of other representatives of the State Customs Service of Ukraine. They discussed the possibility of conducting a joint survey among the international business community operating in - mentation. Ukraineo t get feedback on the new Customs Code’s imple- In-Focus meeting resentatives took place at the Committee on Finance and with Mr. Brodskyy Banking,On June Taxation 14 a meeting and Customs with busi Policiesness asso of theciations’ Verkhov rep-

84 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

with Mr. Oleksandr Klymenko, Head of the State Tax Ser- accomplishments and priorities of the seventh Danish EU viceOny of Jul Ukraine 5 the (STSU)Chamber. It arrwasanged attended an “In-F by Chamberocus” Meeting Mem- Presidency. He also covered the framework, conditions and ber Companies as well as representatives of the diplomatic organizational structure of the EU Presidency, the current community. challengesContinuing for itsthe active European working Union, dialog and with the prseniorospects policy for furthermakers EU-Ukrainein order to movecooperation. the Chamber Membership agenda Mr. Serhii Meeting with Mr. Mykhailo Brodsky, Head of the State Biriuk,Ony Jul Member 5 the C ofhamber the National hosted the Commission latest in its for series State of Serviceforward, of the Ukraine Chamber for w Regulatoryas pleased Policyto hold and an Entrepre“In-Focus”- Regulation“In-Focus” meetings, of Financial with Services the participat Marketsion, and of Mr. Sergiy neurship Development. The meeting also featured the Kuzmenko, Head of the Department for Financial Mar- participation of Mr. Oleksii Soloviov, Head of the State kets Regulation and Financial Monitoring. Issues of pri- Service of Ukraine on Medicinal Products, and Mr. Olek- mary interest for the insurance sector were discussed. sandr Potimkov, First Deputy Head of the State Service of Ukraine for Regulatory Policy and Entrepreneurship Development. - PhytosanitaryOny Jul 6 CServicehamber of AgriculturUkraine regardingal Committee new inspectionMembers - tariffs.held a Membersmeeting withpresented officials the ofChamber the Stat Positione Veterinary Paper and On June 26 representatives of the Chamber PSA/Sub- Mr. Vitaliy provementsoil Working of Grtheoup legislation participat oned subsoil in a meeting issues based of the on W orkPSA Bashinskyy - ing Group for developing recommendations on further im cine,the C Mrs.omparative Lyubov T ableMotornyuk with Tariff Estimates to - - , Head of the Department ofMs. Veterinary Olga Efimova Medi, cutionsigning and and Performance execution. The of ProductionWorking Gr oupSharing was Agreements established , Chief of the Division for Fi by the Interdepartmental Commission Responsible for Exe- nances, on the State Economics Border. and They Accounting, also clearly and stated their position ology and Mineral Resources of Ukraine and was headed Chief of the Division for Veterinary and Sanitary Procedures byon JuneMr. Proskuryakov, 2.The meeting tHeadook place of the at theState Stat Servicee Service. Partici of Ge- costs for the grain and oil industry, resulting in a drop in pants included, among others, representatives of the State that the newly proposed tariffs would significantly increase

export volumes and losses for the industry and farmers. Service, of the Ministry of Ecology and Natural Resources, the American Chamber of Commerce in Ukraine together of the Ministry of Economic Development and Trade, and of Ony Jul 9-13, striving to build a more competitive Ukraine, the Ministry of Finance. 85 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

with its Partner, the Ukrainian Association of Interna- ment tional Economics place with representatives of other governmental authori- (Derzhkompidpryyemnytstvo). A fruitful dialog took- , hosted the “Competitiveness of Ukraine- vice, the State Agricultural Inspection, and the Ministry of tionaland S witzerland”competitiveness. Summer The curriculumSchool. The included event f lecturesocused onby ties, including the State Veterinary and Phytosanitary Ser governmentstudying the andinstitutional business representativesparticularities that and influenceby represen na- A number of arguments have been cited in favor of abol- Ecology and Natural Resources.

yettatives another of the meeting expert community with the participation and academia. of Mr. Oleksii ishing the abovementioned certificates. developing regu- Soloviov,Ony Jul Head 11 the of theChamber State ServiceHealthcare of Ukraine Committee on Medici hosted- lationOn A ofugust products 29 the withChamber codeine participat. The meetinged in a meeting was attended hosted nal Products, and Ms. Natalya Lytvynenko, Deputy Head by the Ministry of Health (MoH) devoted to of the Department of Licensing and Certification of the and the State Service of Ukraine on Medicinal Products. All par- State Service. by representatives of the MoH, the Ministry of Internal Affairs,

Personal Data Protection, as well as Mr. Volodymyr Kozak, unitsticipants, per person)except for codeine those frproductom the salesMinistry in pharmacies. of Internal Affairs, DeputyOny Jul Head 16 Membersof the State of Servicethe Chamber of Ukraine Working on PersonalGroup on expressed their support for the idea of limiting (up to two pack Data Protection, took part in a conference call with experts from the U.S. Department of Commerce. The call was In-Focus Meeting with Mr. Klymenko, Head of the State Tax Service of Ukraine pharmaceuticalkindly organized producers by the Embassy devoted of the to Unitedthe price States. registra- tionOny of Jul medicinal 19 the Ministr products.y of TheHealth meeting hosted was a meeting headed with by Mr. Roman Bogachov, Deputy Minister of Health, and Mr. Mykhailo Nesterchuk, Head of the State Expert Cen- ter under the Ministry of Health.

attended a meeting regarding the introduction of voluntary Ony Jul 27 Chamber Agricultural Committee Members- ternal shipments hosted by the State Service of Ukraine forcertification Regulatory for grPolicyain w arehousesand Entrepreneurship and grain qual ityDevelop for in-

86 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

- Ukraine’” (regarding regulation of the purchase price ing with the participation of Mr. Anders Åslund, Senior Fel- of milk) lowOn of Sept the emberPeterson 18 the Institute Chamber for held International an “Expert VEconomics,iew” meet Washington, DC. Chamber Diplomatic Insiders Club Members .(Mr Hryhorii Kaletnik, Head“On of Prohibition the Parliamentary of Pro- and Chamber Member Company representatives heard Mr. Ås- Committeevision of Collection for Agricultural Services Policy Relating and toLand Physical Relations) Persons- - OnDebtors” the Dr aft(Mr. La Vitaliyw of Ukr Khomutynnikaine #9379 - In 2012, the Chamber addressed the Cabinet of Minis- lund’s presentation on “Ukraine: Capitalism in One Family.” , Head of the Parliamen other Governmental institutions concerning many im- tary(Regarding Committee Increase on Finance, of Income Banking, of the State Tax, Budgetand Customs for Social Policy) Pro- ters, portant the issuesPresidential Secretariat, the Verkhovna Rada, and - w Draft La #10331 “On Amendments(Mr. Mykola tAzarov,o the Tax Prime Code Minister)Of Ukraine - The Law of Ukraine “On Amendments to Certain Laws of Ukraine on Mandatory. They include Insurance but are of notCivil limited Liability to: of Vehi- gram Implementation)“ cle Owners” (Mr. Viktor Yanukovych, President of Ukraine) - w Draft La #10452 “On Amendments to the Tax Code of andUkraine Customs regarding Codes H ofarmonization Ukraine (Mr. of VitaliyCertain Khomutyn Provisions- nik,of the Head Tax ofand the Customs Parliamentary Legislation” Committee as well as on of Finance, the Tax - w Draft La #10655 “On Amendments to the Law of Ukraine Banking, Tax, and Customs Policy) Minister‘On Seapor andts of Minister Ukraine’” of (Mr Infrastructure,. Volodymyr Landytvyn, Mr. C hairmanMykhai- of the Verkhovna Rada, Mr. Borys Kolesnikov, Vice Prime Transport and Communications) - w Draft La #10224 “On Amendments(Mr. to Mykolathe Tax CAzarov,ode of - Draftlo Myr Lawonenko, #9712 Head “On of Seaports” the Parliamentary Committee on Ukraine Prime Minister Regarding of theUkraine State Tandax Service Mr. Vitaliy in the Khomutyn Context of- Conductingnik, Head of A thedministrative Parliamentary Reform” Committee on Finance, .(Mr Volodymyr Lytvyn, Banking, Tax, and Customs Policy) Chairman of the Verkhovna Rada; Mr. Borys Kolesnikov,- - Draft Law “On Amendments to the Tax Code of Ukraine Vice tee on Pr Transportime Minist ander and Communications) Minister of Infrastructure; and Mr. Regarding Improvement of Some Provisions of the Tax - DraftMykhailo Law Myr #10231onenko, “On Head Amendments of the Parliamentary to the Land Commit Code Code of Ukraine” of Ukraine Regarding the Procedure of Conducting Land Auctions” (Mr. Grygoriy Kaletnik - - Draft Law #9661 “On(the AmendmentsUkrainian League to the of Industrial Tax Codeists of Ukraineand Entrepreneurs) Regarding Improving Several Tax Provisions” - Draft Law #10456 “On Amendments, Head to of Article the Parliamen 3 of the - Lawtary Committeeof Ukraine on ‘On Agricultural the State PolicySupport and of Land Agriculture Relations) of (the Parliamentary Committee for Finances, Banking Op eration, Tax and Customs Policies) 87 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

- voices (Mr. Yuriy Kolobov, Minister of Finance) National Security and Defense Council) -- Draft Regarding Law “On the Amendmentsform and the prto ocedurethe Tax Code for filling of Ukraine in tax Re in- Verkhovna Rada, Stat“One Service Amendments on Medicinal to the Pr Legislativeoducts, and garding the Issues of Taxation of Corn Seeds” (Mr. Mykola Base of Ukraine on Healthcare Regarding Establishing Prysyazhnyuk - wRestrictions Draft La #10560 during Professional Activities of Manage- - ment and Employees of Medical and Pharmaceutical , Minister of Agricultural Policy and Food) (Pharmacy) Establishments” - CMU Resolution“On Certain #932 (the Questions Ministry ofof HMedicinalealth and Productthe Min Circulation”istry of Economic Development and Trade) “On Amendments(the Ministr to Certainy of LegislativeHealth and - wCMU Draft Resolution)La ActsVerkhovna of Ukraine Rada) Regarding Strengthening Responsibility - Draft Cabinet (theof Ministers Ministry of ofUkraine Health Resolution regarding “Issuesthe Dr aftof - wfor Draft Falsification La #10561 or Circulation of Counterfeit Medicinal Declaration of Changes in Wholesale and Retail Prices Products” for Medicinal Products and Medicinal Devices Purchased - Draft Directive “On Approval of Tariffs for Services Provid- with State and Local Budget Funds” ed by Agencies (the Ministryand Organizations of Health and Operating Verkhovna under Rada) the Au- - Draft Order “On Amendments to the License Condi- thority of the State Veterinary and Phytosanitary Service, tions for Carrying out Economic (theActivity Ministry for of Produc Health)- in the Field of Veterinary Medicine, Plant Protection, and ing Medicinal Products, Wholesale, and Retail Trade of Medicinal Products”

- Draft Order “The Procedure (Ms. Raisa for CalculatingBohatyryova, the Vice Thresh Prime- oldMinister, Level Minister of Wholesale of Health) and Retail Prices for Medicines for Treatment of Patients with Hypertension” (Ms. Rai-

- sa Bohatyryova, Vice Prime Minister, Minister of Health, Mr. Oleksii Solovyov, Head of the State Service on Medici - Draftnal Pr oducts,Law #10562 and Mr “On. My khailoAmendments Nesterchuk, to CertainHead of LawsState Chamber “Expert View” ofExpert Ukraine Center Regarding under the MinistryImport Licensingof Health). of Medicinal Meeting with Dr. Valeriy Products and Regarding Definition of the Term ‘Active Pyatnitskiy, Ukrainian Government Commissioner Pharmaceutical Ingredient’” for European Integration (the Ministry of Health, 88 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

Protection of Rights for Plant Varieties.” (Mr. Mykola Prysy- - Draft Order “On Certain Issues Regarding the Ban on Ad- vertising of Medicinal Products” - Draft Order “On Amendments to the Ministry of Health “On Amendments to the Law of Ukraine Orderazhnyuk, #426 Minister dated of Agricultural August 26, Policy 2005 and Food) ‘On Licensing of Certain Types of (theEconomic Ministry Activity’ of Health) Re- - - Ongarding the Dr Importaft Law Licensing of Medicinal Products” (Ms. Rai- ” (the Ministry of sa Bohatyryova - DraftHealth,e Law Stat #10563 Service “On on AmendmentsMedicinal Products, to Certain and Stat Lawse Ex of - Draft Resolution of the Cabinet of Ministers “Issues of Dec- Ukrainepert Center Regarding under the a Ministry Ban on ofAdvertising Health) of Medicinal laration of Changes, Vice Prime of Wholesale Minister and and Minister Retail ofPrices Health), for Products” Medicinal Products and Medicinal Devices Purchased - Draft Resolution of the Cabinet of Ministers of Ukraine “On by State and Local Budgets” (the Ministry of Health) Certain Questions (the Ministry of Medicinal of Health Product and Verkhovna Circulation” Rada) (the “On Amendments to Certain Healthcare Legislation Regarding Strengthening Control over Turn- - Draft Order “On Amendments to the Ministry of Health of - over Law #4196-of MedicinalVI Products, Food Products for Special UkraineMinistry of Order Health #391 and the dated Stat eOctober Service on30, Medicinal 2002” (the Products) Minis- Dietary Consumption, Functional Food Products and Di- etary Additives” (the State Inspection of Consumers Rights “On Interaction Between trythe ofOffice Health for and Development the State Service of the on Pharmaceutical Medicinal Products) Sector - Draft Cabinet of Ministers Resolution “Issues of Declara- - Orderof the #98 Healthcare of the Ministr Industryy of H ealthof the Ministry of Health of Protectiontion of Changes and Parliamentary in Wholesale Committee and Retail on PricesHealthcare) for Me- Ukraine and Public Enterprise ‘The State Expert Center of dicinal Products and Medicinal Devices Purchased with the Ministry of Health of Ukraine’” (the Ministry of Health) State and Local Budgets Funds” - “On Improvement of Government Regula- tion of Prices for Medicines and Medicinal Products Procured (the Ministry of Health) - CMU from R theesolution State and #932 Local Budgets” (the Cabinet of Ministers) - Law of Ukraine #4496-VI “On Amending Some Legislative “On Amendments to Article 9 of the Law of Acts with Regard to the Customs Code of Ukraine’s Adop Ukraine ‘On Medicinal Products’” (the Administration of tion” (the President of Ukraine) (Mr. Valeriy Kharlim, - w Draft La - - wPeople’s Draft La Deputy) #9539-1 “On Amendments to Certain Laws of - Ukraine The normative Regarding acts andSubso draftil Usenormative” acts of the Cabinet - the Draft Pr Orderesident, “On C abinetAmendments of Minist toers, the P Ministryarliamentary of Health Health of - careUkraine Committee, Order #391 and Ministry dated October of Healthcare) 30, 2002” (the Minis- of UkraineMinisters (Mr. and Yuriy Ministr Kolobov,y of Finance Minister in the of Finance)sphere of cus toms legislation for harmonization with the Customs Code try of Health and State Service on Medicinal Products) 89 ANNUAL REPORT /2012 www.chamber.ua Ukrainian Government Relations

“On Approval of In- struction on Procedure of Filling Cargo Customs Decla- of Ukraine (Mr. Sergiy Titenko, Head of the National - Draftration” Order of the Ministry of Finance - Commission Procedure for for Accessing State Energy the Unifi Regulation)ed Gas Transport System - On regarding certain provisions of the Customs Code of Ukraine, in particular (the onMinistry customs of control,Finance) valuation, and regimes (Mr. (Mr. Mykola Igor Kaletnik, Head of the State Customs Service) - Azarov, Resolution Prime of the Minister, Cabinet Mr. of Minist Valeriiers Khoroshkovsky, of Ukraine “Certain First Issues Vice - Primeof Labeling Minister, Alcoholic and Mr.Drink Yuriis and Kolobov, Tobacco Minister Products” of Finance) ing Bringing Customs Duty Rates into Compliance with WTO - Draft Law “On Amendments to Certain Legislative Acts - Law of (Mr.Ukraine Vitaliy “On Khomutynnik, the Customs THeadariff of theUkr Parliamentaaine” Regard- of Ukraine on Certification of Foodstuffs” (the Ministry ry Committee of Finance, Banking, Tax, and Customs Policy) of Agrarian Policy and Food) Criteria” - Draft Law # 10443 “On Amendments to the Law of - Ukraine ‘On Milk and Dairy Products’”(Mr. Petro Poro- - Ministry orders #327 and #397 stipulating cancellation of shenko, Minister of Economic Development and Trade) - Drafttechnical Law specifi of Ukrainecations #10571 for pr emium“On the oil Main products Aspects (the of ElecMin- tricityistry of Market Economic Functioning Development in Ukraine” and Trade) (Mr. Mykola Mar- - (Mr. Resolution Mykola of Azarov,the Cabinet Prime of MinistMinister,ers ofMr. Ukr Valeriiaine “C Khoroertain- Issues of Labeling Alcoholic Drinks and Tobacco Products” tynenko, Head of the Committee on Fuel and Energy Complex, SystemNuclear Policyof Ukraine and Nuclear (Mr. Sergiy Safety Titenko,of the Verkhovna Head of Rada) the Na- - Thetional Pr Commissionocedure for Aforccessing State Energythe Unifi Regulation)ed Gas Transport

(Mr. Sergiy Titenko, Head of the National Commission - for Vital State issues Energy related Regulation) to gas mar ket regulation in Ukraine - Draft Law #9539 “On Amendments to the Subsoil Code of Ukraine Regarding Special Permissions for Subsoil Use” -

(Mr. Anatolii Semynoga, Head of the Parliamentary Commit tee on Environmental Policy, Use of Natural Resources, and In-Focus with Elimination of Consequences of the Chornobyl Disaster) - Mr. Titenko - Revision of the Ministry’s orders #327 and #397 stipulating cancellation of technical specifications for premium oil prod 90 ANNUALucts (the REPORT Ministry /2012 of Economic Development and Trade) www.chamber.ua Ukrainian Government Relations

shkovsky, First Vice Prime Minister, and Mr. Yurii Kolo- - Incentive Regulation bov, Minister of Finance) - “On Amendments .(Mr Volodymyr to Ltheytvyn, Law C ofhairman Ukraine of the‘On VerkhovnaLicensing of Rada) Certain Types of Economic Activity’” (Ms. - Law of Ukraine #5012-VI “On AmendmentsPresident to Certain of Ukraine Legisla) - wNatalia Draft La Korolevska #9654 tive Acts of Ukraine Regarding Payment for Joining the Network of Subjects of Natural Monopolies” (the - Draft Law #10047 , “On Head Amendments of the Parliamentary to Certain Committee Legisla- - w Draft La #10656 “On Amendments to C(Mr.ertain Vitaliy Legislat Khoive- tiveon Industrial Acts of Ukraine and Regulatory Regarding Policy Humanization and Entrepreneurship) of Criminal Acts mutynnik, of Ukraine Head Regarding of the FParliamentaryunctioning of P aymentCommittee Systems on Responsibility in the Field of Intellectual Property”(Mr. and Finance, Development Banking, of Tax, Cashless and Customs Payments” Policy) - Draft Law “On Amendments to Certain Legislative Acts Viktor Shvets, Head of the Committee on Legislative Sup- of Ukraine Regarding Reduction of the Number of Per- port of Law Enforcement of the Verkhovna Rada) mission Documents” (Mr. Petro Poroshenko, Minister of “On Amendments to Certain Legislative Acts of Ukraine Regarding Payment for - Joining Law of Ukrthe aineNetwork #5012- of VISubjects of Natural Monopolies” Economic Development and Trade) Mr. (the President of Ukraine) - w DraftMaxym La Lutskyi, #10472 Head “On Amendmentsof the Parliamentary to Certain Committee Legislative - Draft Law “On Amendments to Certain Legislative Acts Acts on Science of Ukraine and REducationegarding P)ersonal Data Protection” ( of Ukraine on Decreasing the Number of Licensing - Draft Law “On Employment” (the Parliamentary Commit- Documents” (the State Service of Ukraine for Regulatory - Introducing the English language in provision of residence per- - Resolving the convertibility issue (Mr. Sergiy Arbuzov, mitstee on (Mr. Social Vitaliy Policy Zakharchenko, and Labor) Minister of Internal Affairs) HeadPolicy ofand the Entrepreneurship National Bank of Development) Ukraine) - Issues of the system of hotel classification and the pro- - Draft Law #9443 “On Internal Trade” (Mr. Petro Porosh- cedure for defining hotel categories (Mr. Borys Kole- snikov, Vice Prime Minister and Minister of Infrastruc- ture, as well as other relevant government institutions) “On Prohibition of Provision - Amendments to Ukrainian legislation concerning dual enko,of Collection Minister Services of Economic Relating Development to Physical and Persons-Debt Trade) - listing of securities - wors” Draft (Mr. La Vitaliy of Ukraine Khomutynnik #9379 d Customs Policy) - Registration of joint (the and Verkhovna several creditorsRada Committee in trans for- (Mr., Head Sergiy of the Tigipko,Parliamentary Vice actionsFinance, securedBanking, Tax,by pledge an (mortgage) (Mr. Oleksandr CommitteePrime Minister on Finance, and Minister Banking, of Tax, Social and Policy)Customs. Policy) - w Draft La “On Employment”

Lavrynovych, Minister of Justice) 91 ANNUAL REPORT /2012 www.chamber.ua 2012–2013 PARTNERSHIP FOR UKRAINE TO SUCCESSFULLY COMPETE IN THE GLOBAL ECONOMY

92 ANNUAL REPORT /20012 www.chamber.ua 2012-2013 Partnership for Ukraine to Successfully Compete in the Global Economy

he Partnership for Ukraine to Successfully Compete international economic and political challenges, and steps for - implementing crucial socioeconomic reforms. Tsive project of the American Chamber of Commerce The Chamber has targeted eight key economic sectors and in the Global Economy (Partnership) is a comprehen - The Chamber concentrates all its resources and unites the - in Ukraine aimed at increasing Ukraine’s competitiveness. sixe stat policy areas for implementation within this Partner international communities, as well as from the government, ship and selected indicators to measure Ukraine’s progress to toefforts reach of this partners comprehensive from the business,goal. One e ofxpert, the mostdiplomatic, important and wardsEconomic increased Sectors: competitiveness. These are: components of the project is the action-oriented document usually referred as the Competitiveness Partnership Report, - • Agriculture • Banking and Financial Services thewhich Chamber, was fir stdeveloped published with by theinput American from the C hamberChamber of Board Com • Fuel and Energy ofmerce Directors, in Ukr ainethe Chamberin 2009. ItCommittees, is a special theworking Chamber product Work of- • Hospitality and Tourism

toing unite Groups, key andpolicy the makers Chamber and P olicythe private Team, insector conjunction in building with a numerous respected analysts and experts. Its primary goal is- port includes a special section on the issues that the Chamber believesstrong and to competitivebe of the utmost Ukrainian importance economy. for Every the country. year the This Re

and transparent long-term relations between the government andyear the the private Chamber sector emphasized and included the aimportance section on the of statusconsist andent prospects of public-private partnerships (PPP) in Ukraine.

Regulatory Reforms that provides a basis for the Partnership andThe provides Report a includeslist of steps an thatAction Chamber Plan of Members Policy, Leg andal, Part and-

of the necessary amendments under the current conditions of globalners belie economicve need crisis, to be methods taken. It forincludes dealing a swithynthesized serious table new

93 ANNUAL REPORT /20012 www.chamber.ua 2012-2013 Partnership for Ukraine to Successfully Compete in the Global Economy

number of state authorities during special policy meetings • Information and Communication Technologies • The Partnership project has been presented to a wide • Logistics and Transportation • Real Estate and Construction Development with the Chamber Leadership; State• Retail Policies: Trade • Hard copies have been delivered to ambassadors, members websitesof the Diplomatic of our InsidersPartnership Club, andCoalition NGO and Members IFI leaderships; have been updated,• Special highlighting pages on all the developments; Chamber’s w ebsite and on the • Anti-Bribery Policy • Customs Policy • Healthcare Reform By• Partnershipthe end of 2012 banners the Chamber have been had placed doubled on the the member sites of- • Human Resources and Labor Policy Chamber’sship of its Partnership Partnership coalition Coalition since Members. the beginning of the year The• Tax Report Policy was submitted to all relevant government agencies• as Intellectual general recommendations Property Rights from Protection. the Chamber, developed in conjunction with the Chamber Board of Directors, Commit- to include such authoritative organizations as the Ministry of- tionalForeign Committee Affairs of Ukrof theaine; International the Verkhovna Chamber Rada Cofommittee Commerce; for It will be also used as a focal point for developing the Cham- Banking, Finance, Tax, and Customs Policy; the Ukrainian Na tees, and Working Groups. International Center for Policy Studies; and more. even more its cooperation with different institutions, taking the the Ukrainian League of Industrialists and Entrepreneurs; the ber’s coalition with its partners. In 2012 the Chamber intensified in 2012.The r egionalThe new aspects regional of Ukr initiativeaine’s competitiis in conjunctionveness became with the a communication,Partnership to a butwhole also new as a le conceptvel: no wfor it buildingis perceived and developnot only- new aspect of the Chamber’s activities in 2011, and continued- as ing a strong strong and instrument fruitful relations of the C amonghamber’s all stakeholders.internal and external sive picture of regional development and ratings based on World The Chamber Policy Team has been working on communi- Foundation for Effective Governance and provides a comprehen-

Economic Forum methodology. The Chamber’s role in this part cating about the Partnership to different officials, organizations, nership lies in providing realistic, easy to use, and inexpensive haveand allies: been sent to all representatives of the Ukrainian govern- oblastsrecommendations were used thatas pilot will case help studies. increase In r egions’2012 we compar developedative ment• Englishwith which and Ukrthe ainianChamber versions has been of the working Partnership on relevant Report recommendationsadvantages. Donetsk, for Dnipr eachopetrovsk, region. Currently Kharkiv, these Lviv, andare Odesaunder policy issues; consideration of the relevant regional authorities.

94 ANNUAL REPORT /20012 www.chamber.ua CHAMBER COMMITTEES AND WORKING GROUPS

95 ANNUAL REPORT /20012 www.chamber.ua Chamber Committees and Working Groups

Chamber Committees Chamber Working Groups and Councils

• Agricultural Committee • Anti-Corruption Working Group • Banking and Financial Services Committee • Antimonopoly Working Group • Customs Committee • Working Group on Bar Legislation • Food and Beverage Committee • Working Group on Internal Trade • Fuel and Energy Committee •Chamber Overseas Security Clubs Advisory Council (OSAC) • Healthcare Committee • Hospitality and Tourism Committee • Human Resources Committee • ICT Committee • Diplomatic Insiders Club • Intellectual Property Rights Committee • Marketing Club • Logistics and Transportation Committee • PR Club • Real Estate Committee • Toastmasters Club • Tax Committee

96 ANNUAL REPORT /2012 www.chamber.ua Chamber Agricultural Committee

Responsible Board Member and Co-Chair: Current Committee Priorities:

Co-Chair: IvanMikhail Miroshnichenko, Ganevitch, Cargill Noble AT, Resources LLC Ukraine - Secretary: • Continuingency of governmental a dialog policywith alinl thegovernmental agricultural sector.authorities aimed at ensuring predictability, efficiency and transpar- sic precondition for the sustainability and security of the • Continued advocacy for free market principles as the ba MissionOleg Samus,: TheSuntrade Chamber S.E. / Agricultural Bunge Ukraine Committee sup- national economy in general and for improving competive- ports and promotes the development of the Ukrainian ag- ness and boosting investments in the agricultural sector in - particular. veloping the Ukrainian agricultural sector through positive - interactionricultural se withctor. policymakers The Committee’s and other main stakeholders. goals include de • Resolving issues pertaining to old VAT debt and introduc- - ing new taxation policy supporting growth in agriculture, dustry based upon free market principles is among the Cham- the activities of agricultural producers and timely VAT re Developing a more efficient and competitive agricultural in- safetyfunds forusing exporters. well-developed international standards. tee is one of the most important and beyond. Chamber advocacy • Clear up government policy in relation to GMO and food- platforms,ber’s main addressingPolicy Priorities issues for within 2012. theThe Ukrainian Agricultur agriculturalal Commit ate in a way that is favorable for the rural population that industry. It is open to all interested Chamber Members. The • Ensuringowns and that farms the the agricultur land, foral landagricultural market effiproducers,ciently oper and - for other key market participants. cultural sector through positive interaction with relevant policy makersCommittee’s and othermain goalsstakeholders. include deTheveloping Chamber the isUkr a ainianMember agri of - • Simplification and liberalization of governmental control of Ukraine and the Coordination Council on Agricultural Policy procedures (certification, registration, etc.) to create a fa underthe Public the CabinetCouncil of theMinisters Ministry of Ukraine.of Agrarian Such Policy memberships and Food

future. Agricultural willw allo proactive advocacy of the Committee’s priorities in the Committee

97 ANNUAL REPORT /2012 www.chamber.ua Chamber Agricultural Committee

vorable business climate and attract further investments into the agricultural sector. Ukraine and Legal Entities-Grain Exporters, which extended improvedthe status andquo more into thepredictable 2012/13 situation. marketing This year. will Gi positiveven the- • Continuesector, including holding governmentala leading position authorities, in the facilitation business of and an positive results achieved in 2011/12 MY, we today expect an- efficient dialog between all stakeholders in the agricultural the economy at large and the agricultural sector in particu- ly influence the development of the grain industry in par lar.NGOs, regarding various legislative initiatives related to ticularThe andcurrent the country’s situation agricultural concerning sector licensing in general. documents - ber Members and to outside counterparts and governmen- - • Providetal authorities. effective, timely, and quality information for Cham logis a regardingcomplicat edintroducing one and islegislative stifling further amendments development aimed ofat the grain industry. Given this, the Committee initiated a dia- The Committee believes that stable and predictable grain ments. The Cabinet of Ministers adopted the resultant reso- - abolishing the grain quality certification for domestic ship tural sector in Ukraine. The Chamber has always played a proactiveexport is arole major in resolving driver for grain developing trade issues an effi andcient maintain agricul- lution, which will lead to the more efficient use of available - der to avoid policy complications in grain trade. To ensure ing an efficient dialog with the government of Ukraine in or- - stable ground in this field, the Memorandum of Understand ing on export, which proposes declaring exports and estab majorlishing agricultural export limitat sectorions playersfor 2011-12 and theMY ,Ministry was signed of Agri by a- Chamber-led group of NGOs representing the interests of

dialog.cultural The Policy Memorandum and Food. This has hasalso al helpedlowed inthe avoiding industry the to operate under stable conditions and maintain an efficient year, despite unfavorable grain harvest forecasts, we again signedintroduction the Addendum of export torestrictions the Memorandum by the go vernment.of Understand This-

ing between the Ministry of Agricultural Policy and Food of 98 ANNUAL REPORT /2012 www.chamber.ua Chamber Agricultural Committee

assets and resources in the industry. The resolution will The Agricultural Committee was also effective in maintaining an equal and competitive environment in the dairy of Ukraine and the business community. sector, a sector that could have been distorted by the initia- also be beneficial for the interests of both the government tive to regulate the purchase price of milk. Chamber Mem- Thanks to efforts of the Chamber Agricultural Committee - terioration of the business environment for milk and dairy producers,bers argues increase that such prices, a move and w ouldreduce lead product to a si gnificantquality. This de Leadership, we are gaining ground in the hard-fought battle- - tivefor the position VAT system for all in market Ukraine. players. We have Chamber always ad effortsvocated have for VAT administration schemes that ensure an equal competi ledo t a presidential veto of Draft Law #10456 “On Amend - mentso t Article 3 of the Law of Ukraine ‘On State Support resulted in a presidential veto of the Draft Law #8521 “On of Agriculture of Ukraine,’” which the Verkhovna Rada had Amendments to the Tax Code of Ukraine and Other Legisla passedThe Chamberon June 7. Agricultural Committee has used a number tive Acts of Ukraine on the Simplified System of Taxation, of formal platforms to promote its views and lobbying activ- Accounting and Reporting.” The President recommended - byexcluding agricultural the amendment producers orthat enterprises would restore that boughtthe zer ograin VAT visory Council under the President of Ukraine, the Coordi- directlyrate for fromexport agricultural operations producers. with grains and technical crops ities. These include the Domestic and Foreign Investors Ad - tor for agricultural sector development, but it has to be nation Council on Agrarian Reform, and the Working Group- basedWe onconsi internationalder VAT administr best practices.ation to beThe an Committee important held fac recton Gr dialogain Exports with leading under actorsthe Ministr in they agriculturalof Agrarian Psector.olicy andRe- Food of Ukraine. Chamber Members also enjoy efficient di Committee were invited to hold direct talks with Mr. Mykola a series of meetings with the State Tax Service leadership cently, CEOs from companies on the Chamber Agricultural on reimbursement of VAT accumulated during previous - years. Afterwards a number of specific proposals were sent ferentPrysyazhnyuk, sub-sectors Minist of eragriculture. of Agricultur In alan P openolicy andand Ffocusedood, as to the STSU that would allow avoiding further VAT issues dialog,well as participantswith a number discussed of stat ethe offi mostcials important responsible issues for dif for and improving VAT administration. As a result of its efforts- the development of the industry, including grain production the Chamber received an official explanation from the STSU regarding the identification of “agricultural producer” sta tus and of the “first intermediary” for the purpose of correct theissues, sector, grain the shipment process of and bringing exports, national the w practiceseak points and in pro the- VAT administration in grain trade. current licensing system that cause inefficient functioning in

99 ANNUAL REPORT /2012 www.chamber.ua Chamber Agricultural Committee

- tional procedures on the part of the controlling bodies and cedureso int accordance with European standards, the opera Following Chamber Arguments, President Yanukovych- foreign trade issues, meat and dairy production issues, and vetoed Draft Law #8521 “On Amendments to the Tax Code of currentauthorities imbalances that must between be impr beeroved and for hops the sak production.e of efficiency, Ukraine and Other Legislative Acts of Ukraine on the Simpli fied System of Taxation, Accounting and Reporting” with the andrecommendation technical crops to by exclude agricultural the amendment producers or pr enterprisesoposing to Main committee achivements in 2012: thatrestore bought the zergraino V directlyAT rate ffromor export agricultural operations producers. with grains - standing between the Ministry of Agricultural Policy and Signed: the Addendum to the Memorandum of Under

Food of Ukraine and Legal Entities-Grain Exporters and Mr-. Agricultural Mykola Prysiazhniuk, Minister of Agricultural Policy and Committee Food, as well as its Annex #1, which explicitly identifies ex Meeting portable amounts for various grain crops for 2012/13MY.

Following Chamber Arguments, President Yanukovych vetoed Draft Law #10456 “On Amendments to Article 3 ofw the La of Ukraine ‘On State Support of Agriculture of Ukraine’” (regarding Regulation of the Purchase Price of Milk), passed by the Verkhovna Rada on June 7. -

Ony Ma 24, 2012 CEOs of companies on the Chamber Ag ricultural Committee held an “In-Focus” meeting with Mr-. entMykola sub-sectors Prysyazhnyuk, of agriculture. Minister of Agricultural Policy and Food, and a number of state officials responsible for differ The Cabinet of Ministers approved Chamber-initiated legislative amendments aimed at abolishing grain quality

100 ANNUALcertification REPORT for domestic /2012 shipments. www.chamber.ua Chamber Banking and Financial Services Committee

Responsible Board Member: - nance and keep it professionally owned Development • Depository system in Ukraine: keep it under strict gover Co-Chairs:Andre Kuusvek, European Bank for Reconstruction and • Ratings: develop a rating culture • Ppaymentsayment s ystems(NBU-driven and de project)velopment of clearing settlements Secretary:Vladyslav Rashkovan, UniCredit Bank (card-related): participate in/amend card-related UAH Klaus Mueller, Prominvestbank NBU liquidity gaps, second • Liquidity management at banks: Repos development, first; MissionIhor Olehov,: To Baker participate & McKenzie in the CIS Ukrainian banking sys- - • Non-resident ownership modifications for banks dards and values and to support and develop initiatives to • Development of the stock market - tem’s development and promote high quality banking stan • Consumerments loan regulatory issues best international banking practices. The Banking Commit- • Development of SWIFT usage for international bank pay createtee has a established local banking itself en asvironment one of the harmonized most active withand pro the- Main Committee Achievements in 2012: ductive Chamber Committees, one involved in both lobbying and networking activities. POLICY WIN: -

President Vetoed the Law Regulating Man- Current Committee Priorities: datory Insurance of Civil Liability of Vehicle Owners • The President of Ukraine has vetoed and returned for re- of actions, when laws, resolutions, and regulations can be vision the Law of Ukraine “On Amending Certain Laws of • Continuous systematic involvement in fire control types Ukraine on Mandatory Insurance of Civil Liability of Ve the country hicle Owners,” adopted by the Verkhovna Rada of Ukraine considered detrimental to the financial industry and/or to - • Financialcial sector sector (with taxan agreed-uponissues/insur ancetransition sector period, focus in starting 2012 Banking and • withImplement provisions IFRS at (and banks not “Ukrainian” IFRS) in the finan Financial Services Committee • Development of the derivatives market in Ukraine: work on a draft law to be presented during H1 2012 101 ANNUAL REPORT /2012 www.chamber.ua Chamber Banking and Financial Services Committee

- A discussion of state debt management issues took place with the participation of the State Debt and International on March 15, 2012. The Presidential veto almost fully in corporates the Chamber’s proposals, which it addressed- to sion Pr andesident improvement. Yanukovych on April 5, 2012. The Chamber concernFinancial over Policy the Department, situation around Ministry the of MotorFinance. (Transport) asked the President to veto the Law and suggested its revi InsuranceThe Banking Bureau and of Financial Ukraine C(MTIBU)ommittee and expressed commented its deep on POLICY PROGRESS: Chamber Position on Reloadable Pre-paid Products to Be Considered by the National Bank of Ukraine Draftw La #10626 “On Amendments to the Law of Ukraine ‘On Mandatory Civil Liability Insurance of Vehicle Owners,’” Bank asking that the requirement that reloadable prepaid whichSeveral the VCommitteeerkhovna Rmeetingsada adopt wereed in devoted the first to r eadingissues reon- • On March 1, 2012 the Chamber sent a letter to the National- July 5. - letterproducts of reply incorpor statedate that a chip the beBank excluded of Ukraine from theis current Regula- latedo t non-performing loans (NPLs). As a result, a list of lytion working on Electr ononic this Mone issuey in and Ukr willaine. take The Nattheional Chamber’s Bank’s questions/issues that will improve the legal and tax envi proposal and arguments into consideration. ronment for NPLs in Ukraine was compiled and a separate Working Group was created to deal with them. - The Chamber has clarifiNationaled issues Commission pertaining to for the State Law Regulationof Ukraine “On of Financial Financial Services Services and StatMarketse Regulation. Mr. Biriuk, of Fi Membernancial Mar of kets”the National with the Commission, held a meeting with the Chamber representatives and briefed the participants on the functions and current activities of the newly estab-

legislative initiatives to be developed by the Commission inlished the nearcentr future.al executive Mr. Biriuk autho discussedrity. He altheso prospectshighlighted of the

- adoption of the Draft Law “On Insurance” by the Verkhovna Rada. The state officials shared with participants the Na tional Commission’s Action Plan for 2012.

102 ANNUAL REPORT /2012 www.chamber.ua Chamber Banking and Financial Services Committee

The Chamber actively lobbied for a number of issues with could impede Ukrainian businesses from attracting interna- the National Bank, in particular NBU Resolution No. 246, the enforceability of cross-border suretyships and cross-border foreign currency loans, syndicated loans, and related provi- tionalPOLICY financing ENGAGEMENT: from foreign Compulsory creditors. Insurance of Civil sioning issues. Liability of Vehicle Owners

POLICY ENGAGEMENT: Registration of Cross- Border him to veto the Law of Ukraine “On Amendments to Cer- Loans tainOn Laws April of 5 theUkraine Chamber on Compulsoryappealed to the Insurance President of asking Civil Mr. Ser- Liability of Vehicle Owners, giy Arbuzov, Head of the National Bank, regarding cross- borderOn F ebruaryloan registration 17, 2012 with the Cthehamber National appeal Bank.ed to ” adopted by the Verkhovna POLICY ENGAGEMENT: Electronic Money RadaPOLICY on March ENGAGEMENT: 15, 2012. Prohibition on Provision of requirement Collection Services that reloadable prepaid products incorporate a chip was On April 12 the Chamber addressed Mr. Vitaliy Khomu- sentOn to Ma Mr.rch Sergiy 1, 2012 Arbuzov, a Chamber Head Lett ofer the on National the Bank. tynnik

POLICY ENGAGEMENT: Dual Listing of Securities , Head of the Parliamentary Committee on Finance,

amendments to Ukrainian legislation concerning dual listingOn Mar of securitiesch 6, 2012 the Chamber sent a Letter regarding - ot the Verkhovna Rada Committee for Table.Finance, Banking, Tax, and Customs Policy. It also devel oped a Draft Law, an Explanatory Note, and a Comparative POLICY ENGAGEMENT: Regarding Cross-Border Sure- tyships On March 26 the Chamber appealed to Mr. Sergiy Arbu- zov, Head of the National Bank, requesting that the NBU take steps to resolve the convertibility issue, an issue that

103 ANNUAL REPORT /2012 www.chamber.ua Chamber Banking and Financial Services Committee

- POLICY ENGAGEMENT: Syndicated Loans “On Prohibition on ProvisionBanking, T ax,of Collectionand Customs Services Policy, Relating with a P toosition Physical Pa syndicated loans and related provisioning issues to Mr. Ser- Persons-Debtors.”per on Draft Law of Ukraine #9379 giyOn Arbuzov, June 27 Head the C hamberof the National sent a P ositionBank. Paper regarding

POLICY ENGAGEMENT: Using SWIFT in Customer POLICY ENGAGEMENT: Functioning of Payment Sys- Orders tems and Development of Cashless Payments Mr. Vitaliy Khomu- Bank of Ukraine regarding further developments in us- tynnik, Head of the Parliamentary Committee on Fi- ingOny SWIFT Ma 23 in a customer Chamber Lettorderser w. asSuch sent usage to the will National facili- nance,Ony Jul Banking, 2 the C Taxhamber and appealCustomsed tPolicyo , with a Position tate workflow between banks and non-resident investors who open accounts in order to carry on investment - activity. Paper on Draft Law #10656 “On Amendments to Certain- questingLegislative further Acts ofimprovement Ukraine Regarding of this document. Functioning of Pay POLICY ENGAGEMENT: Registration of Creditors ment Systems and Development of Cashless Payments” re in Transactions Secured by Pledge POLICY ENGAGEMENT: Cross-border Credit (loan) On May 23 the Chamber addressed Mr. Oleksandr Agreement Registration National regarding the registration of joint and several credi- Bank regarding NBU Resolution No. 246 suggesting the es- Lavrynovych,tors in transactions Minister secured of Justice, by pledge with a (mortgage).Position Paper On August 15 the Chamber sent a letter to the - torial departments must register cross-border loans accord- POLICY ENGAGEMENT: Financial Services and ingtablishment to the amended of a certain procedure fixed term for registeringwithin which cross-border NBU terri State Regulation of Financial Markets credit (loan) agreements with the NBU by resident-borrow- On May 24 the Chamber appealed to Mr. Andriy Sta- ers (not banking institutions). - POLICY ENGAGEMENT: Mandatory Civil Liability In- callingsevskiy, forHead clarification of the National of Ctheommission Law of fUkraineor State R“Oneg surance of Vehicle Owners Financialulation of Servicesthe Financial and StateServices Regulation Markets of of Financial Ukraine, Mr. Kho- Markets.” mutynnik, Head of the Parliamentary Committee on Finance,On Sept Banking,ember 3 aTax, Chamber and Customs Letter w asPolicy sent, twitho copies

104 ANNUAL REPORT /2012 www.chamber.ua Chamber Banking and Financial Services Committee

going to Mr. Stasevskyi, Head of the National Commis- POLICY ENGAGEMENT: System of Securities Custodi- sion for Regulation of the Financial Services Mar- an Accounting ket, and Mr. Vizirov, General Manager of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU). “On the - SystemOn Sept of emberSecurities 18 the Custodian Chamber addrAccounting”essed the and President asked tion concerning the MTIBU and to comment on the Draft of Ukraine with a letter analyzing Draft Law #9428 The point was to express deep concern over the situa signing. for significant improvement of the legislative act before its Law #10626 “On Amendments to the Law of Ukraine ‘On Mandatory Civil Liability Insurance of Vehicle Owners,’” which the Verkhovna Rada adopted in the first reading- suranceon July 5. market in Ukraine and abroad, and in the media. Thisw La could have serious repercussions in the in-

couldIn addition, cause considerablethe changes financialcould lead losses to Ukr to aine’sUkraine exclu and sion from the “Green Card” international system, which- tion. its citizens, as well as essential damage to its reputa

POLICY ENGAGEMENT: Functioning of Payment Sys- tems and Development of Cashless Payments On August 30 the Chamber appealed to Mr. Khomutyn- nik, Head of the Parliamentary Committee on Finance, Banking, Tax, and Customs Policy, “On Amendments to Certain Legislative Acts of Ukraine Regarding Functioning ofregarding Payment Dr Systemsaft Law and#10656 Development of Cashless Payments,” with a proposal that Chamber amendments be included in the document.

105 ANNUAL REPORT /2012 www.chamber.ua Chamber Healthcare Committee

Responsible Board Member: registration, one that applies equally to all market players. Co-Chair: • Ensuring2. Ensuring a clear a andpredictable, transparent transparent, methodology and of stat efficiente price Mr. Jean-Paul Scheuer, Sanofi-Aventis Ukraine LLC regulatory system in the pharmaceutical sector to cre- Secretary: ate a real basis for improving investment attractive- Mr. Borys Danevych, Danevych Law Firm ness:

MissionMs. Oksana: Vasyutinskaya, Sanofi-Aventis Ukraine LLC quality control of imported medicines; - • Securing stable, transparent, and efficient regulation of- The Chamber Healthcare Committee seeks to- improve Ukraine’s business environment in the pharmaceu • Promoting a ban on additional unnecessary/costly regula- thetical commercial field; exchange interests relevant of Memberand timel pharmaceuticaly information; orcomga- tory tion procedureprocedures (e.g. (in the line issue with pertaining the President’s to registered declar ations);medici- nizepanies. discussions; and take joint action aimed at promoting • Preventionnal products of that unr easonablebear medical changes devices in asthe integral market parts). authoriza 3. Ensuring sufficient intellectual property rights Current Committee Priorities: protection of medicinal products: 1. Establishing a competitive landscape for the devel- - opment of the pharmaceutical sector and attracting for- ly proposed• Prevention by the of government);an unreasonable decrease in the level of eign investment: IPR protection in the Law on Medicinal Products (as recent- - • Development of IPR enforcement in the pharmaceu • Preventionforeign manufacturers of discriminat fromory PIC/S barriers countries; in the form of com tical sector as regards data exclusivity and patents (e.g. plicated procedures for GMP compliance confirmation by barrier; • Prevention of import licensing, which is a non-tariff trade- turers during public procurement procedures; Healthcare • Prevention of discriminatory barriers for foreign manufac Committee • Preventionduring price of registration VAT for imported procedures; medicines only; • Prevention of discrimination against imported products

106 ANNUAL REPORT /2012 www.chamber.ua Chamber Healthcare Committee

taining ethanol be transferred to the alcoholic drinks cat- Center and the State Service for Intellectual Property); through facilitating co-ordination between the State Expert- - licly available web resource for related judicial documents). maceuticalegory, a category businesses for whichthe right excise to choose duty must any authorized be paid. cus- • Ensuring transparency of IP litigation (e.g. through a pub tomsPOLICY office PR inOGRESS: Ukraine The for customsState Customs clearance Service of theirgave goodsphar Main Committee Achievements: regardless of the place in which the importer is registered. It also canceled the requirement that customs control and customs - Committee Co-Chair joined the Coordination Council for trated at the Biokon customs licensed warehouse. RegulatorySTAKEHOLDER Affairs INTERA of the CTION:Pharmaceutical In February Sector 2012 under the clearance of medicinal products within Kyiv Region be concen the Ministry of Health of Ukraine. This supporting institu- amendments to the regulation on conducting clinical tri- tion was created to respond to issues related to the circula- alsPOLICY in Ukraine PROGRESS: The Committee helped develop tion of medicinal products; draft regulatory acts; advise on the further improvement and enforcement of the regulatory as stipulated by Ministry of Health Order base; and advise on relations between the state bodies in- #523 “On Amendments to Ministry of Health Order #690 volved in pharmaceutical sector issues. indated the Septemberdevelopment 23, of2009.” the new price declaration model, ad- POLICY PROGRESS: The Committee was actively involved vertising of OTC medicinal products via adoption of the LawPOLICY of Ukraine PROGRESS: #4196-VI Compromise “On Amendments achieved regarding to Certain Healthcare Legislation Regarding Strengthening Con- trol over Turnover of Medicinal Products, Food Prod- ucts for Special Dietary Consumption, Functional Food Products and Dietary Additives.” certain OTC products cannot be advertised, but does not totally ban OTC product advertising. wThe Committee La stipulat memberses that

hashelped stopped develop qualifying the Law’s medicinalcriteria. products containing ethanolPOLICY as PR alcoholicOGRESS: drinksThe State Customs Service of Ukraine-

Customs Service demanded that aft aller medicinala Ministry products of Health con intervention at the Committee’s request. Previously, the State 107 ANNUAL REPORT /2012 www.chamber.ua Chamber Healthcare Committee

the current situation has no legal grounds and that the is- May. On August 13th, 2012 Resolution of the Cabinet of - Ministersexpressing of its Ukraine position #794 during several meetings in April and- work. Ms. Moiseyenko also proposed creating a Coordina- es in Wholesale and Retail Prices for Medicinal Products and tionsue sho Counciluld be on resolved pharmaceutical within the issues existing as a r egulatorysupporting fr amebody “Issues of Declaration of Chang

priceMedicinal declaration Devices model Purchased instead with of theStat previouse and Local price Budgets regis- heldfor the a meeting Ministry with of Health. the representatives of the Ministry of Funds” was adopted, establishing a more efficient and clear EconomicOn February Development 24, 2012 the and C Tradehamber to H discussealthcare price Committee registra- - tion of medicinal products. Ms. Olena Osinkina, Presiden- tration mechanism that CMU ResolutionWorking #932 stipulat Groupsed. on tial Committee on Economic Reforms, joined the meeting DevelopmentSTAKEHOLDER of NormativeINTERACTION: Acts Inunder July the2012 Ministry the Com of to present mitteeHealth Leadership of Ukraine. was included in the - general reform of the healthcare sector; reforms in the pilot ing mark-ups on medicinal products; restricting circulation three areas of healthcare reform implementation: These working groups work on: regulat - imported product quality control; amending the procedure patedregions; in anda working the “New meeting Life” national headed project. by Ms. Galina Kalish- of medicines with codeine; finalizing changes to regulation of On February 28, 2012 the Committee Leadership partici state registration of medicinal products; and other issues. for confirming GMP compliance; amending the procedure of Lobbying Engagements and Important Committee Meetings in 2012 - ing that included Ms. R. Moiseyenko, First Deputy Minis- terOn of JanuaryHealth 20,of Ukraine 2012 the, andChamber representatives participated of in business a meet

the lack of a legal basis and the possible negative effects ofassociations. the requirement The lat terfor emandatoryxpressed the registrationir concerns of regarding medical devices that are supplements to medicinal products. The

stipulated these requirements. Ms. Moiseyenko agreed that Ministry of Health State Expert Center (SEC) had recently

108 ANNUAL REPORT /2012 www.chamber.ua Chamber Healthcare Committee

enko, Deputy Minister of Health. The meeting reviewed marginal marketing and retail mark-ups for medicinal prod- - ucts and medical devices. mentsimplementing to normative medicinal acts, prandoduct other certification, issues. time gaps in the - GMP compliance confirmation procedure, necessary amend- mittees held a joint meeting with Mr. Anton Lipukhin, Deputy ing with Ms. Raisa Bohatyryova, Deputy Prime Minister, DirectorOn Mar ofch the 2, 2012Legal theSupport Chamber and H Internationalealthcare and RelationsIPR Com On April 20 the Committee LeaderMr. Oleksiyship at Solovyovtended a meet Department and Head of the Medicines Turnover Legal Sup- of the State Service on Medicinal Products; and Mr. Mykhay- port Section of the State Expert Center under the Ministry loMinister Brodsky of H, Chairmanealth of Ukr ofaine; the State Service for Regulatory, Head of Health of Ukraine. The goal was to discuss IPR legislation in the pharmaceutical sector. Mr. Yuriy Savko and Mr. Vitaliy meeting gathered representatives of associations uniting in- Gordienko, special guests from the Association of Pharma- Policyternational and Entrpharmaceuticalepreneurship producers Development and ofwas Ukr devotedaine. The to ceutical Research and Development (APRaD) the draft Resolution of the Cabinet of Ministers “On the Pi- their willingness to cooperate with the Chamber Committees to lot Project on Introduction of State Regulation of Prices improve IPR legislation in the pharmaceutical sector., expressed of Medicines for Patients with Hypertension.” - Ministry of - HealthOn Ma. Therch meeting 13, 2012 addressed the Committee the recently Leadershi adoptedp partici Order On June 5 the Committee gathered Chamber Members for #98pated in a working meeting organized by the a Special ChamberMr. H Mykhailoealthcare Nesterchuk,Committee Meeting newly appointwith rep- edresentatives General Director of the Stat ofe Expertthe SEC C,enter and the under other the participants Ministry of “On Interaction Between the Office for Development discussedHealth of (SEC the ).registration and re-registration of medicinal of the Pharmaceutical Sector of the Healthcare Industry of products, the regulation of clinical trials in Ukraine, biosimi- Thethey Ministr Order critically of Health changes of Ukr ainethe procedureand the Public for state Enterprise regis- “Statetration Expert of medicinal Center products of the Ministr in Ukraine.y of H ealth of Ukraine.” with the State Customs Service. - lars legislation, in-bulk imports, and the SEC’s cooperation- Forum mittee held a joint meeting on customs clearance of medici- onOn Implementation March 29 a number of Production of Chamber Certification Member Companies and Good ac nalOn product June 14procedures the Chamber according Healthcare to the newand CCustomsustoms Code.Com tiveManufacturing on the Healthcare Practice Committee (GMP) Compliance participated in inUkraine the . The Present were representatives of the State Customs Service, the Kyiv Regional Customs Office, and the State Expert - Center under the Ministry of Health. event was organized by the State Service on Medicinal Products ande the Stat Training Center for Good Manufacturing/Distri bution Practices with the goal of clarifying the following issues: 109 ANNUAL REPORT /2012 www.chamber.ua Chamber Healthcare Committee

- Ukraine by participating in a number of joint meetings and lation of pharmaceutical market as well as the introduction of co-signing several position papers. licensingOn June for 21 imported Committee medicinal Member productss discussed with the M r.stat Mykhaie regu- lo Brodsky, Chairman of the State Service for Regulatory Committee was actively involved in the activities of the Public Policy and Entrepreneurship Development, and Mr. Olek- CouncilSTAKEHOLDER under the MinistryINTERACTION: of Health Thr (mainlyoughout within the theyear, Com the- sii Solovyov, Head of the State Service on Medicinal Prod- mission on Pharmaceutical Sector Development of the Pub- ucts lic Council) and of the Public Council under the State Service on Medicinal Products (including a meeting with Mr. Oleksii with, theat the participation in-focus meeting of Mr. thatOleksii the ChamberSolovyov, organized. Head of the Solovyov, Head of the State Service of Ukraine on Medicinal StateOny ServiceJul 11 theon CMedicinalommittee Productshosted yet, andanother Ms. meetingNatalya Products). Lytvynenko, Deputy Head of the Department of Licens- ing and Certification of the State Service, to discuss issues of importance for the pharmaceutical sector. These include establishment of import licensing procedures for medicinal

In September the Committee, jointly with the Chamber products and GMP certification/confirmation procedures. - ings with Mr. Ruslan Bortnik, a co-author of the Law of FoodUkraine and “OnBeverage Foundations Committee, of State held seLanguageveral working Policy,” meet on amendments to Article 26 of the Law regulating the language of labeling and directions for using goods. On Sep-

tember 28 the Committee gathered representatives of the- State Service on Medicinal Products, the State Expert Center Rightsunder theand Ministr Safety,y and of HMemberealth, the Companies Association to ofdiscuss Manufac the amendments.tures of Medications, the All-Ukrainian Council for Patients’ - tee developed close cooperation with associations rep- resentingSTAKEHOLDER international INTERA pharmaceuticalCTION: In 2012 producersthe Commit in

110 ANNUAL REPORT /2012 www.chamber.ua Chamer Customs Committee

Responsible Board Member: Mr. Peter Chernyshov, Carlsberg Ukraine Syomka. Co-Chairs : by continuing collaboration with the Service’s Mr. Sergiy Mr. Igor Dankov, PwC Code. • Participating in the development of the revised Customs- Secretary: hovna Rada adopts it and the President of Ukraine signs it. Mr. Vitaliy Naumenko, KPMG-Ukraine Ltd. • Holding a seminar on the new Customs Code after the Verk-

MissionMr. Alexandr: To Gutsal, contribute Carlsberg to the Ukraine development of customs • Promotingfostering Committee relations betwMembereen theparticipation Chamber Cinustoms developing Com legislation that is simple, modern, adaptable, realistic and proceduresmittee and the for Ministr applyingy of Financeroyalty andcharges Cabinet in theof Minist customsers; tangible; to develop a professional forum for discussing customs issues and to serve as a communication channel applying customs regimes. for Chamber Members with the State Customs Service of value of imported goods, in defining customs value, and in Ukraine. Lobbying Engagements: Priorities for 2012: • Elaborating the new Customs Code of Ukraine on elaborating important parts of the new Customs Code. Chamber Member companies in their dialogue with the The Chamber Customs Committee’s experts worked • LobbyingCustoms Service on behal andf ofother Chamber agencies membershi and in resolvingp - helping dis- formalities, bringing them into accordance with the Inter- putes with the customs authorities. Their work included harmonizing customs procedures and - veloping new regulatory documents based on it. national Convention on the Simplification and Harmonization • Participation in the review of the Draft Customs Code, de - • Harmonization of customs valuation with WTO rules. • Promoting simplification of customs procedures on the ba Customs legislation.sis of the Kyoto Convention. Committee • Informing businesses about the development of customs-

• Promoting relations with the State Customs Service by or ganizing meetings with the Service’s Mr. Igor Kaletnik and 111 ANNUAL REPORT /2012 www.chamber.ua Chamer Customs Committee

- Time limit for customs clearance procedures (no more than four hours); of Customs Procedures (Kyoto Convention) and with European - legislation. The experts’ attention was focused on the most auditsproblematic and appeal aspects procedures, of customs declaration legislation: of cust goodsoms to v customs,aluation, - The concept of the so-called “Authorized Economic Opera selected classification and origin issues, customs post-entry import,tor”; processing, etc.), which will improve opportunities - for Improved doing business; customs procedures (especially re-export, re- and modernization of customs regimes. - Customs treatment of royalties remains unclear until the of theAfter Code the and fir stshared reading the ofposition the dr ofaft the Customs business C ode,commu the- relevant procedure is approved by the government. Chamber nity, appealing expressed to the its President. concerns rAfteregarding taking the thesese pr ovisionspropos- als into consideration, on December 21, 2011, the President - regarding its support of the Customs Code and asked him to implementThe Chamber the seinnovationsnt a Letter it t containso the Pr esidentby signing of Ukrthisaine im- returned the Customs Code with his comments to the Verk portant legislative act. hovna Rada in order not to narrow the existing rights and freedomsDue to of Chamber citizens. efforts, the new Customs Code con- - tains the following proposals for improving customs pro- tended lobbying campaign ended in the signing of the new cedures: Wee ar proud to state that on April 19 the Chamber’s ex Ukraine. Customs Code of Ukraine (#4495-VI) by the President of place of registration of the importer; • Cooperation with the State Customs Service of Ukraine - - The Customs possibility clearance of amending at any cust customsoms offi declarationsce regardless for of three the years after customs clearance; The Chamber was very pleased to continue its close and effective working relationship with the State Customs Ser- - - imbursement The possibility of of customs re-exporting duty; goods to a non-resident in Mr. Ihor Kaletnik, Head of the State Cus- case of failure to fulfill contractual commitments, plus re tomsvice. InService, particular and, the otherre recently representatives took place ofan the“In-F Stateocus in case of temporary import of goods that do not qualify Customsmeeting” withService on February 13th. The meeting allowed - Partial exemption from customs duty (in addition to VAT)- Chamber Member Companies to provide professional feedback and deliver their concerns and recommendations dur- under the Annexes to the Convention on Temporary Im port (Istanbul, 1990); 112 ANNUAL REPORT /2012 www.chamber.ua Chamer Customs Committee

ing the reform process. The Committee members had the Service in order to solve common tasks and make sure that rev- opportunity to discuss issues of general concern to all im- enues go to the state budget in a timely manner. porting companies, particularly the publication of the customs value database by the State Customs Service, e-decla- On April 11 Chamber President Jorge Zukoski and the Chamber Customs Committee Leadership met with Mr. Dmytro Polishchuk, Head of the Kyiv Regional Customs rations,The Committee and new fines also continuesfor violations its ongoing of customs cooperation rules. with Office, to discuss important issues that Member Companies the SCSU in order to ensure prompt solutions to the customs are currently facing with regard to customs clearance. To clearance problems that Chamber member companies face. ensure better customs representation, Mr. Sergiy Siomka, Director of the Department of the Organization of Cus- Important Meetings in 2012 toms Control and Clearance of the State Customs Ser- vice; Mr. Sergii Gila, Director of the Customs Payments the Chamber Customs Committee held Department; Mr. Yaroslav Prokopenko, Deputy Director a meeting devoted to recent legislative developments in the customsOn February sphere. 24 This time Chamber Member Companies could address their questions and concerns directly to representatives of the Ministry of Finance: Mr. Sergey Bedash and Mr. Oleksiy Lishenko, Department of Tax and Cus- toms Policy and Financial Accounting Methodology.

- nance and the Chamber Customs Committee with regard to developingIn discussi andng drafting cooper theation statutory between regulations the Ministr stipulatedy of Fi by the new Customs Code, the parties agreed to continue to - nian customs regulations. cooperateo t foster best international experiences in Ukrai On March 23 the Committee held its regular meeting, with the participation of representatives of the State Customs Service. The meeting addressed how to strengthen interaction with the

113 ANNUAL REPORT /2012 www.chamber.ua Chamer Customs Committee

of the Department of Struggling against Smuggling and On May 16, Mr. Oleksandr Dorokhovsky, First Dep- Corruption and Risk Analysis Activity; and Mr. Sergii uty Head of the State Customs Service, Mr. Stepan De- Djigalov, Department of Classification of Goods and For- rivolkov, Deputy Head of the State Customs Service, eign Economic Activity; joined the meeting. and other representatives of the State Customs Service participated in the Special Chamber Customs Committee - - tion;The the parties frequent discussed discrepancies the Stat ein C ustomscustoms Service’s valuation position deter- minationregarding based such hoton the issues price as actually the new paid Customs (transaction Code’s value); adop Meeting “The New Customs Code of Ukraine: The Ameri customs post-audit; the determination of origin of goods under thatcan Ccontinuedhamber of jointCommerce efforts in will Ukr ensureaine’s C theontribution predictability to Its free trade agreements; problematic issues regarding applica- ofDevelopment.” customs clearance During andthe enotedvent thethaty ethexpressed Chamber confidence Special - Committee Meeting was an important step in the right di- ing customs clearance procedures for medicinal products and tion certificates of origin; and other issues related to perform critical issues and outline areas of interest for the business community.rection, as it provided an excellent opportunity to discuss equipmentThe Chamber at the CustomsKyiv Regional Committee Customs and House. the State Customs On May 30 the Chamber participated in a meeting of the Service leadership agreed that Chamber Member Compa- State Customs Service devoted to the conceptual basis for

questions regarding customs clearance and customs valua- new customs legislation. The meeting also addressed ways tionnies issuesshould directly be able toto Service express representatives their concerns duringand submit indi- tothe create customs favorable authorities’ conditions activities, for foreign taking inteconomico account activi the- ties. The Chamber suggested that the State Customs Service issues took place. vidual consultations. On April 12 the first meeting on these On April 20 the Chamber Customs Committee participated and the Chamber should jointly work on: in a private sector panel during the third State Customs • monitoring the new Customs Code’s implementation, - Service workshop - • organizingternational relevantbest practices. information exchange, • developing proposalsChamber for impr Customsoving Committeethe Code based Co-Chair, on in . The event was devoted to the topic “Cus Mr. Igor Dankov, PwC, attended a roundtable discussion on toms Valuation and Audit Procedures.” The workshop was On June 14 the organizedy b the U.S. Department of Commerce Commercial- the State Customs Service. Participating in the event were derLaw Protection, Development and Pr theogram, State theCustoms U.S. Embass Servicey ofin Ukraine.Ukraine, the Mr.“The Igor New Kaletnik, Customs HeadCode ofof Ukrtheaine’s State Implementat Customs Service;ion” at U.S. Department of Homeland Security, U.S. Customs and Bor

114 ANNUAL REPORT /2012 www.chamber.ua Chamer Customs Committee

and Mr. Vitaliy Khomutynnik, Head of the Committee on of business and government; to how the customs valuation Finance and Banking and Taxation and Customs Poli- of imports affects the balance of payments and consumer cies of the Verkhovna Rada. Representatives of business activity; and to the post-audit of imported goods, and par- associations and of other stakeholders as well as of the State ticularly what implications it will have for business. Customs Service also took part. Mr. Igor Dankov, PwC, Chamber Customs Committee Co-Chair, took part in a press conference on State Customs Service. The event was the Ony Jul 23 On June 20 the Chamber participated in a conference cal-l participation of Mr. Serhiy Siomka, Head of the Depart- organizedy b the “Thement New of Customs Customs Control Code in and Action: Documentation First Results,” and with Mem the- first in a series of such conferences to be held each Wednes ber of the Collegium of the State Customs Service, Mr. asdayy well b the as themain heads Customs of the Service public offi councilsce in Kyiv. under Participants the aus- Dmytro Polishchuk, Head of the Kyiv Regional Customs included heads of all the regional customs offices of Ukraine Office, and other stakeholders. Mr. Igor Dankov highlighted some issues that, despite pices of the regional customs offices. Many department the ongoing positive changes, remain important for Chamber onheads hand. took part from the main State Customs Service office in Kyiv. Representatives of business associations were also Member Companies and call for further improvement: devoted to the topic “Budget Revenues and the New Cus- tomsOny Code:Jul 5 Majorthe Chamber Risks to took Stability.” part in Thea public event discussi was heldon

- by the NGO League of Financial Development, with support fromThe the event USAID was Financial held with Sect theor Departicipationvelopment Profoject Mr. (FINYurii REP)Kolobov, and DzerkaloMinister Tyzhnia of Finance; Ukraine representatives weekly. of the Committee on Finance, Banking, Tax, and Customs Poli- cy of the Verkhovna Rada; of the State Customs Service;

The meeting was devoted to the key advantages and dis- ofadvantages the State Taxof the Service; new Customs and of business Code from associations. the perspective

115 ANNUAL REPORT /2012 www.chamber.ua Chamer Customs Committee

- according to the new Customs Code of Ukraine, customs au- toms authorities do not provide detailed information from thorities are obliged to demonstrate in written form their this database and it is impossible to conclude whether the - goods they refer to are similar and identical to the goods ation and how relationships have impacted the price. The being valued. Moreover, the new Customs Code encourages reasons authorities for oftennot appl doying not thedo that.first methoThey cand of also cust omscheck v aluthe - correctness of customs valuation during post-audit inspec- tial; importers thus have no access to it, which makes any tions, the customs authorities to keep this information confiden - in order to substantiate the customs value of goods, the - consultationsMr. Igor Dankov with thealso customs noted that authorities with regard difficult. to customs - valuation, the customs authorities should strictly follow the customsport declaration authorities from oft theen rcountryequire e xcessiveof departure, additional a calcula doc- requirements of the Agreement on Implementation of Ar- umentstion of goods or documents value, and that so iton. is Itimpossi is necessaryble to obtain: to split anapart ex - ticle VII of the General Agreement on Tariffs and Trade. - the processes of defining customs value and declaring cus ership met with Mr. Oleg Sheyko, Deputy Head of the toms value. The first method of customs valuation should StateOn ServiceSeptember for 4 Regulatory the Chamber Policy Customs and C ommitteeEntrepreneur Lead- be recognized in all those cases in which neither condition ship Development. Outlining possible paths for further co- requiresfor the non-application further improvement, of this method since exists, it contains docu- operation, Mr. Igor Dankov, PwC, Chamber Customs Com- - thisments list that of documents are not necessary for cust omsfor customs valuation clearance confirmat (e.g.,ion mittee Co-Chair, stressed the need to amend as soon as accounting, payment documents, etc.). The Agreement on possible the currency control regulations, in order to bring them in compliance with the Customs Code. on such documents, but states that data on additions to The parties agreed to collaborate closely on customs priceImplementation should be madeof Article on the VII basis of the of G objectiveATT does and not quanfocus- matters. In particular, the Chamber was requested to sum-

- adjust it accordingly. tifiablemation, data, which is important during consultations about marizeOn September the problems 4 the with Chamber the new took Customs part in C odethe publicin order dis to- - thechoosingre exists an anappropriate issue with method regard ofto customs the exchange valuation. of inf Theor issue is that the customs authorities misuse their internal to Increase Revenues to the Treasury and Prevent Price price database, using information from it as a substitute cussion “The State Budget and the New Customs Code: HMr.ow for transaction value (this is against WTO rules). The cus- Oleksiy Lyshenko, Ministry of Finance; Mr. Vitaliy Kho- Increases for Imported Goods?” The event included

116 ANNUAL REPORT /2012 www.chamber.ua Chamer Customs Committee

mutynnik, Head of the Verkhovna Rada Committee on Finance, Banking, Tax and Customs Policy; and Mr. Ser- hiy Siomka, Head of the Department of Customs Control provided proposals regarding the Draft Law #9241-д “On and Documentation and Member of the Collegium of the Amendments to the Law of Ukraine ‘On the Customs Tariff- State Customs Service. of Ukraine’ (On Bringing Import Duty Rates into Conformity - with the WTO Criteria)” and Draft Law #10452 “On Amend mentso t the Tax Code of Ukraine Regarding Harmonization- The agenda addressed the following issues: the prelimi of Some Provisions of Tax and Customs Legislation” to Mr. importednary results goods, of the and new particularly Customs C whyode –when whether customs it will fees mak goe Vitaliy Khomutynnik, Head of the Verkhovna Rada Commit down,things consumereasier for epricesxporters do not and necessarily; importers; andimport whether prices the of tee on Finance, Banking, Tax and Customs Policy.

• Cooperation with other stakeholders theThe new Chamber rules have Customs reduced theCommittee flow of contraband.cooperates closely

Chamber Customs Committee Meeting withwith the the Ministry participation of Finance: of representatives from the Minis- - On February 24 the Committee held its regular meeting- oping and drafting statutory the regulations stipulated by trythe ofnew Finance Customs to discussCode as C wellhamber as Chamber involvement proposals in devel for certain instructions the Ministry has developed.

group meeting on improving customs legislation under the Ony Ma 28 the Chamber took part in the first working The Chamber Customs Committee provided the Ministry auspices of the Ministry of Finance. legislation as well. of FinanceThe Chamber with Customsa range Committeeof proposals collaborates to improve effectively customs

and Customs Policy. In addition to a wide range of proposals onwith the the new Parliamentary Customs Code, Committee the Chamber on Finance, Customs Banking, Committee Tax

117 ANNUAL REPORT /2012 www.chamber.ua Chamber Human Resources Committee

Responsible Board Member: der of Processing, Making, and Issuing of Certificates for Permanent Residence and Temporary Residence Co-Chairs: and of Technical Description of their Letterheads and Mr. George Nassar, Procter & Gamble Ukraine LLC Amendments to the CMU Regulation #1983 dated De- cember 26, 2002. - Ms. Alena Kozlova, UkrSibbank, JSC Ms. Anna Radysh, SC Johnson The Document and” It witsas Appendix approved callat the for C introducingabinet’s meet a MissionMs. Yuliya :Cherkashina, Danevych Law Firm newing onCertificate March 28. for Permanent Residence and new tem- - porary residence letterheads that have been developed Sharing experience, knowledge, and skills with according to the ICAO standards in both the Ukrainian andotherR information, H professionals; resulting pr omotingin the enrichment the professional of the personnel develop and English languages. ment of Members through exposure to new knowledge, skills, According to the Resolution, the State Migration Service of Ukraine has to ensure the processing and issuing of per- Currentfunction within Committee each Member’s Priorities: organization. line with the procedure that the above Resolution approved manent residence and temporary residence certificates in On March 1 the American Chamber of Commerce in • Improving/amending the national labor legislation. starting from May 15, 2012. - • Advocating for Chamber proposals to the Draft Labor Code. ister of Internal Affairs, with a Position Paper on the need to • Solving problematic issues in the employment area. - Ukraine (Chamber) addressed Mr. Vitaliy Zakharchenko, Min- • Advocatingvate employment for clear agencies and transparent and third immigration party employments legislation. • Legislativeproviders . and regulatory framework development for pri introduce the use of the English language in provision of resi

pension system. • Promoting pension reform and developing a three-level legislative framework. • Conducting overviews of the Ukrainian labor market and Successful lobbying campaigns:

published Resolution #251 “On Approval of the Or- • On Friday, March 30 the Cabinet of Ministers of Ukraine 118 ANNUAL REPORT /2012 www.chamber.ua Chamber Human Resources Committee

dence permits. As mentioned earlier, the Chamber received and assistance in employment or other related services, - citizens who have been provided with job hunting services- an official response from the State Migration Service on the ing of personal data of employees and ensuring respect for Thegovernment’s Chamber intcanention proudly to intrstateoduce that newits position formats was for fullyCer • ensuring citizens’ personal data protection during process incorporatedtificates for Permanent in the approved Residence Resolution and Temporary #251. Residence. the current law, and Law of Ukraine # 5067-VI (Draft Law #10497-1) “On citizens’ privacy in accordance with the requirements of Employment,” which was signed by the President of Ukraine and with non-discrimination principles. • Ukraine, provides for the opportunity to create an effective • guaranteesStakeholder for interactioncompliance with the current legislation of mechanism to promote full, productive, and freely chosen - employment in the framework of socio-economic policy - - TI Alliance.• On April This 24 time the Cthehamber event H wasR C ommitteedevoted to he problemsld its regu in tional rights and guarantees of the right work, as well as thelar meeting,legal regulation organized of jointlemployersy by the and Chamber in higher and education. the USE implementation.with social protection It al soagainst provides unemployment. citizens with constitu It was attended by Dr. Lilia Hrynevych, Advisor to MP Ar- senii Yatseniuk, and Dr. Yaroslav Bolyubash, Advisor to - the Minister of Education, Science, Youth, and Sports of cialChamberR website of H the C Ministryommittee of e Socialxperts Policy were for acti publicvely in considerationvolved in the Ukraine. elaboration of Draft Law #10497–1, which was posted on the offi

employmenton April 5. The agencies Committee and also of activitiesprovided abased wide rinternationalange of proposals best to the Ministry of Social Policy regarding the definition of private

practicesThe Chamber and on the stresses Private thatEmplo Lawyment #5067-VI Agencies “On Convention, Employ- 1997ment” (#181), fully included of the International the Chamber’s Labor recommendations Organization. on:

a business entity that provides mediation in employment, • the legislative definition of a private employment agency – employment agencies, • the legislative definition of services provided by private receiving fees, commissions, or other compensation from • the prohibition against a private employment agency’s

119 ANNUAL REPORT /2012 www.chamber.ua Chamber Human Resources Committee

The meeting analyzed the following Draft Laws “On High theer Education”: Cabinet of Ministers of Ukraine; Draftw La #9655 of December 28, 2011 introduced by

Draftw La #9655-1 of December 30, 2011 introduced by- People’s Deputies Arsenii Yatseniuk and Lesia Orobets; A w Draft La that has not yet been registered by Parlia ment, developed by the Working Group on “Revision of the specialDraft Law meeting ‘On Higher with theEducation.’” participation of Ms. Anna Wicha, President• On Sept ofember the Polish 20 the Temporary Chamber H RWork Committee Association held a (Polski Zwiazek Agencji Pracy Tymczasowej), Board Member of Eurociett, and Ms. Maryna Lazebna, Direc- tor of the Department of the Labor Market and Employ- ment of the Ministry of Social Policy of Ukraine. The event was devoted to discussing the innovations stipulated

well as current trends in the development of employment legislation.by the newly adopted Law of Ukraine “On Employment” as During the meeting it was agreed that the Chamber will

and about the draft bylaws stipulated by its adoption. These proposalsmake proposals will be ab postedout the onLa wthe of websiteUkraine “Onof the Emplo Ministryyment” of Social Policy for public consideration. The goal is to ensure clear and transparent employment legislation as well as a - petitiveness. better business environment and to increase Ukraine’s com

120 ANNUAL REPORT /2012 www.chamber.ua Chamber Tax Committee

Responsible Board Member: Stakeholder interaction

Co-Chair: February 14 the Chamber Tax Committee held a working Mr. Floris Schuring, KPMG-Ukraine Ltd. meeting with Mr. Vitaliy Khomutynnik, Head of the Verkhovna • OnRada Committee on Finance, Banking, Tax, and Customs Pol- Secretary:Mr. Slava Vlasov, PwC icy Mr. Oleg Chayka, KPMG-Ukraine Ltd. recommendations submitted by relevant Chamber Committees .t A the meeting, outstanding issues in the taxation sphere and MissionMr. Ivan Yurchenko,: To promote Vasil the Kisil reform & Partners and improved appli- February 15 guestwere discussedof the meeting and areas was ofMs. further Ksenia cooperation Liapina, Peoples were identified. Deputy - • Onof Ukraine. the Chamber Tax Committee met. The special cantcation factor of the both tax ination the sgeneralystem in facilitation Ukraine, rofecognizing business andthat in a thepredictable, positive developmentequitable, and of eff theective Ukrainian tax system economy. is a signifi The parties discussed the amendments to the Tax OnCode March developed 14 Chamber by the Verkhovna President R adaJorge Committee Zukoski onand Finance, Cham- Current Committee Priorities: Banking,ber Tax CommitteeTax, and Customs Co-Chairs Policy. Slava Vlasov of PwC and Oleg • Chayka of KPMG met with the Head of the State Tax Service of Ukraine, Oleksandr Klymenko, to discuss ways of resolving is- - • Developop recommendations amendments for to successfullythe Tax Code introducing of Ukraine them. and to as to agree on a further plan of cooperation between the Chamber secondary legislation for Tax Code implementation; devel sues that Chamber Member Companies are experiencing as well solutions to the royalty issue (including deductibility of • Lobby royalties) for timeland they and issues efficient as pertaining VAT reimbursement to consulting and fees for and Tax Authorities. During the meeting it was agreed to establish and engineering fees. two joint working groups on tax loss carry forward and transfer

• Discontinue inadmissibility of tax losses carry forward in contradiction to the current Tax Code. Tax Committee • Provide for fair and unbiased consideration and resolution of tax disputes. • Harmonize Ukrainian tax legislation and practices with those of the EU and OECD.

121 ANNUAL REPORT /2012 www.chamber.ua Chamber Tax Committee

pricing. In order to speed up the process for receiving responses from the STSU the parties reached an agreement to redirect letters that the Service developed. from Member Companies with a Chamber cover letter, in order to discussSeptember the Draft 14 Amendments the Chamber to metthe T withaxation the S representativesystem of Ukraine of the State Tax Service in order to discuss problematic issues April 2, the Chamber Tax Committee Co-Chairs met with • On representativesensure their proper of consideration the State Tax by Servicethe tax authorities. • On in the taxation sphere. This time the event was devoted to The participants focused primarily on the recent as part position of the firthatst forwardthe following against issues: Chamber Members, meeting of the Joint Working Group on Tax Loss Carry Forward. - approaches to stopping court cases related to tax loss carry

Theythe Ukr alsoainian focused tax authorities on the prospects have tak foren. resolving This position the situationtends to - discussion of the right of taxpayers to generate a full volume deny all pre-2011 tax losses on the part of Ukrainian businesses. of expenditures from carrying out operations with securities- April 6 accordingating in the to agriculturalthe requirements sector, of and the Tax Code of Ukraine, with tax loss carry forward in the nearest future. - ensuring return of VAT arrears for Chamber Members oper • On therepresentatives Chamber Tax C ommitteeof the State Leadership Tax Service. held The the firaimst October 1 the Chamber took part in a meeting with meeting devoted to transfer pricing issues of the Joint Working- - improvingMr. Petro Poroshenko, VAT administration. Minister of Economic Development Group with • Onand Trade methodsof this meeting of cooperation was to exchange between view the sChamber on the new and tr theansfer STSU pric on - theing interpretationrules coming int ando effimplementationect on 1 January of these2013 rules.and t o agree on ,o t discuss the Draft Law “On Amendments to the July 5 Tax Code of Ukraine and Other Legislative Acts Regarding Fur Mr. Oleksandr Klymenko, Head of the State Tax Service of ther Improvement of Administration of Taxes and Fees.” • OnUkraine , attended the Chamber by Chamber arranged Member an “In-F Companiesocus” Meeting as well with as • On October 9 the Chamber took part in the conference- by representatives of the diplomatic community. “Taxation pation of Mr. Reform: Sergii the Tigipko, Most Impor Vice Primetant Tool Minister, for Economic Minis- July 17 - Developmentter of Social Policy and Emplo of Ukraineyment .Increase,” with the partici

• On , following the agreements reached during the “In-Fo Lobbying activities cus” Meeting with Mr. Oleksandr Klymenko, Head of the State Tax issuesService, related a joint to meeting factoring of operationsthe representatives and securities of the trading. Chamber Tax - CommitteeAugust 27and the State Tax Service took place in order to discuss Mr. Andriy Ignatov, Deputy Head of the State Tax Service, to Chamber Tax Committee experts were actively involved in de- • On the Chamber Tax Committee Leadership met with veloping amendments to the Tax Code of Ukraine regarding tax- loss carry forward, in close collaboration with the State Tax Ser 122 ANNUAL REPORT /2012 vice of Ukraine (STSU) within the framework of the Joint Cham www.chamber.ua Chamber Tax Committee

- ber/STSU Working Group on the Tax Loss Carry Forward Issue. next The key Chamber step for thewas C hamberactively engagedwas to st opin theall court lengthy cases and related com- They also worked closely with the Committee on Finance, Bank toplicated tax loss process carry forward. of discontinuing all court cases stemming from ing, Tax, and Customs Policy of the Verkhovna Rada. - The Chamber has provided proposals about the Law of Ukraine- stop them in the nearest future. As a Member of the Domestic and 4834-VI “On Amending the Tax Code of Ukraine Regarding Im the issue of tax loss carry-forward and advised about the need to however,provement despite of Certain the solution Tax Changes,” that was which introduced. recently passed. The is President of Ukraine with regard to this matter. The Chamber also sue To regarding resolve these tax loss issues carry completely forward w andas not permanently, completely the resolved, Cham- Foreign Investors Advisory Council, the Chamber appealed to the - discussed the need to discontinue all court cases with the Head of ber has provided proposals about Draft Law #10224 “On Amend the State Tax Service and other stakeholders. ing the Tax Code of Ukraine (on the State Tax Service of Ukraine The Chamber started to discuss the need to discontinue all tax with Regard to Administrative Reform Implementation)” to the Service.loss carry It f orwardfollowed court up on cases this with issue the during State T aax subsequent Service on Marseriesch supportRada’s C thisommittee important on Finance, initiative. Banking, Tax, and Customs Policy. 14 during a meeting with Mr. Oleksandr Klymenko, Head of the- It hasThe also following asked Pr Chamberime Minist recommendations,er of Ukraine Mr. My basedkola Azar on interov to- national best practices, related to the tax loss carry forward of meetings. During an “In-Focus” Meeting on July 5 with Mr. Kly issue were incorporated into Law #5083-17 “On Amending promisedmenko he todiscussed stop the courthis or dercases to in his question. organization’s Legal Service the Tax Code of Ukraine (on the State Tax Service of Ukraine to develop a tax ruling that will resolve this issue permanently, and with Regard to Administrative Reform Performance)”:

• allow for the inclusion of the outstanding negative value which is- not riods repaid until itswithin complete the r espectiverepayment; tax periods during 2012–2015 into an object of taxation, carrying it forward to upcoming tax pe

• include the tax loss incurred as of January 1, 2012 into the amounts of tax loss incurred as of January 1, 2011, including amounts of tax losses carry forward from 2010 and previous tax years. Given the amendments to the Tax Code and the general tax consultations “For Inclusion of Negative Value of a Taxable Item from Income Tax” that the State Tax Service has approved, the 123 ANNUAL REPORT /2012 www.chamber.ua Chamber Tax Committee

- again with proposals regarding a mutually acceptable mechanism On August 8 the Chamber appealed to the State Tax Service tional Provisions” of the Tax Code exists in a new version, one ap Service said that it would consider these proposals and thanked provedy b Law of Ukraine #4834-VI “On Amendments to the Tax thefor discontinuingChamber for helping court cases develop related a mechanism to tax loss carfor ryresolving forward. prob The- Code of Ukraine to Improve Certain Tax Rules,” with amendments Administrativeapproved by Law Court of Ukraine will help # 5083-VI.to discontinue all court cases per- On September 13 a joint meeting of the Chamber representa- The Chamber believes that this clarification from the Supreme lematic tax loss carry forward issues. lobbying activities to make sure that court cases relating to the Chambertainingo t Membertax loss carCompaniesry forward. are Thestopped, Chamber as well will as continueto establish its tives and the State Tax Service officials took place at which these clear and favorable rules for doing business in Ukraine. instanceissues w erecourts. discussed. It was decided that the tax authorities will - withdraw appeal petitions in cases in which they lost in the first lated to 1) the procedure for taxation of income of a party - to The a Cjointhamber activity submitt agreemented to the (JAA) State ifTax this Ser partyvice questions receives inre- During the meeting Letter of the Supreme Administrative come from the activity, and 2) imposing VAT for the services secondCourt #2019/12/13-12 quarter of 2011, onlywas thosealso discussed. negative amounts According are to included it, given of Ukrainian freight forwarders (VAT payers) for organizing that the Tax Code does not limit the formation of expenses for the international transportation for Ukrainian customers (VAT payers). Therefore,that arose theas a composition result of the of v theery secondfirst quart calendarer of 2011, quarter excluding of 2011 Since then, the STSU has developed the following decisions and amounts outstanding cumulative negative previous tax periods. approved them with orders. - 1. On approving the general tax consultation for imposing tax should include the negative value of a taxation object for the first on income received as a result of joint activity on the terri- intoquarter account, of 2011, without while any calculation limitations, of the the negnegativeative vvaluealue ofamounts a taxa tory of Ukraine without creating a legal entity (approved by tion object for the first quarter of 2011 shall be effected by taking Order #582 dated July 5, 2012), which provides the oppor- and that had not been paid off by accruing totals during previous tunity to avoid reportingthat arose asperiods. of January Considering 1, 2010, asthe w ellabove, as those inclusion that ar ofose the in 2010men- This Order states that considering that income received as a re- - double taxation of income from the joint activity. ond quarter of 2011 cannot be a reason for the supervisory au- tioned negative value of a taxable item in the expenses of the sec secondsult of joint time acti andvity is not is tax includeded before in the or revenueduring its from payment joint activity. for the At the same time, courts should take into account that starting 2. partiesoOn the t procedure the joint acti forvity, imposing the income VAT shall on notfreight be tax forwardingable for the thority to determine income tax liabilities for a taxpayer. - activity (approved by Order #610 dated July 6, 2012). Ac-

fromy Jul 1, 2012, paragraph 3 subsection 4 of section XX “Transi 124 ANNUAL REPORT /2012 www.chamber.ua Chamber Tax Committee

- forwarder (resident) when the funds are received from an inter- abilities for the value of the transportation services shall not arise cordingo t this document, VAT liability shall arise for the freight forness the entity). freight If forwarder. the carrier is not a resident and VAT payer, tax li - national transportation customer or according to the execution Thedate valueof the ofdocuments the provided confirming freight that forwarding international services transporta (freight A carrier who is a resident (VAT payer) shall issue a tax- tion for the customer has been carried out, whichever occurs first.- ternationalinvoice for chartransportation.ging zero rate The VAT freight and shallforwarder provide shall it t ohave the freight forwarder as of the date tax liabilities arise for the in- forwarder’s fee) and the value of the international transporta fortion the services transportation shall form customer the taxable as baseof the of datethe freight of emergence forwarder. of the o right t include the tax invoice from this carrier in the reg- The freight forwarder (resident) shall issue two tax invoices tionister services of received shall tax not in arisevoices. for If the the freight carrier forwarder. is not a resident for the value of the freight forwarding services is provided to the and VAT payer, tax liabilities for the value of the transporta the tax liabilities for international transportation: the first invoice - forwarding services are provided to a customer who is a non-resi- The Chamber Tax Committee has advocated for these positive customer (received fee) including the basic rate VAT (if the freight ifchanges they are and provided is pleased by onethat, resident according to anotherto the general resident. tax consul forwarding services provided). The second invoice is for the value tation, no forwarders’ services are included in the customs value dent, the freight forwarder does not have VAT items for the freight If the freight forwarder uses carriers or other freight forward- of international transportation services with zero rate VAT.

ing companies for international cargo transportation, the zero- ersrate or stipulat other edfreight in par forwardingagraph “a” companies.of subparagraph 195.1.3 of Clause 195.1 of Article 195 of the Code shall be applied by the same carri

While this is being done, the requirement of Clause 189.4 of- Article 189 of the Code shall be taken into account, namely: if the transportationfundse ar received was frcarriedom the out cust foromer the customer, or according whichever to the occursexecu tione dat of the documents confirming the fact that international

offirst, the a servicesVAT liability is registered shall arise on for the the territory freight foforwarder Ukraine (rasesident) a busi- for the transportation amount at the rate of 20% (if the customer

125 ANNUAL REPORT /2012 www.chamber.ua Chamber Food and Beverage Committee

Responsible Board Member: tory of Ukraine and streamlining of inspection procedures by relevant governmental authorities; Co-Сhairs: Mr. Walter Gordon, Coca-Cola Ukraine Limited facilities and bringing them in line with international best Natalya Bondarenko, Carlsberg Ukraine • Modernizationpractices; of existing sanitary regulations for catering Secretary:Sergey Movchan, DANONE LLC

• Introducingoperations; international quality standards and labeling MissionLana Sinichkina,: Arzinger requirements that allow for more efficient export-import - the government of Ukraine regarding its failures to imple- ing consumer goodsThe F oodsector. and The Beverage Committee Committee deals with has beenfood • Increasing lobbying capacity and maintaining dialog with established to respond to companies’ needs in the fast mov - - ment the Internal Trade Law; - tectand thebeverage interests saf etyof theissues business that impactcommunity people’s and limotivateves. We • Ensuringtry; that declarations made by the governmental of thehave government established tothe elaborate Food and effective Beverage laws Committee acceptable to pr foro ficialse ar consistent with their actions towards the indus - - opment and recognition at the world level. • UsingOtries; WT principles to protect the interests of Ukrainian both State sides, control laws ofthat foodstuffs can contr isibute very strictto the in country Ukraine.’s de Comvel- business and oppose “unfriendly” actions by foreign coun mittee Members are working on reducing state control and legislation that are potentially threatening or disadvanta- increasing manufacturer and importer responsibility. • Taking geous for pr theeemptive industry; action by identifying pieces of draft The labeling issue is of major importance to the Committee. - - One of the Committee’s principles is to align Ukrainian legisla tion with European legislation in order to make it more pro Currentgressive and Committee corresponding tPriorities:o the industry’s current needs. Food and Beverage Committee - • Improvementduction of workable of the natinternationalional legislat standardsion on food on thesafety terri by- bringing it in line with the EU legislation, including intro

126 ANNUAL REPORT /2012 www.chamber.ua Chamber Food and Beverage Committee

- - cial purposes. • Looking into the issue of obtaining land plots for commer ASpecial document guest: on theMr. mainVolodymyr risks that Slab packediy, Head goods of holdthe forUkr imai- Committee achievements (including nianporters Packaging and producers and Environmental was circulated Coalition,within the UkrPEKCommittee Working Groups activities) On October 1 the Chamber co-signed a letter to the Min- 1. Working Group on Food Safety istry of Economic Development and Trade supporting the Verkhovna Rada’s adoption of the Draft Law “On Packaging Meeting: September 17 systemand Packaging in Ukraine Waste.” based on market economy principles. Ledy b Volodymyr Martynchuk, Director of Department 3. Thew W Drorkingaft La Group supports on theIntroducing creation of International a waste management Qual- of Food Safety, Lactalis-Ukraine ity Standards and Labeling Requirements ServiceIt was and decided of the t oState organize Customs a roundtable Service tomeeting provide with a sup therepresentatives of the State Veterinary and Phytosanitary - Meeting: September 25 - port plan for Draft Law #10495, and to discuss the export- Ledy b Sergey Movchan, Director for Government Rela import operations procedure and its compliance with Law tions and Security, Danone LLC, and Julia Melnik, GR Man of Ukraine #771/97 “On Safety and Quality of Foodstuffs” ager, Danone LLC Membersuntil the amendments asking them toto thecompile Law takea list force. of questions regard- Activities: October 1 – an additional request was sent to Committee

ing export-import operations that they would like to submit to theThe cust draftoms letter autho willrities then inbe connectionsubmitted to with Mr. theIgor La Dankov,w “On SafetySenior andManager Quality PwC, of Foodstuffs.” the Co-Chair of the Chamber Customs Committee, for analysis of its legal compliance with the procedures envisaged by the Customs Code. 2. Working Group on Post-Consumer Waste Recy- cling

PakMeeting: Ukraine September 4 Ledy b Anna Tarantsova, Environmental Manager, Tetra 127 ANNUAL REPORT /2012 www.chamber.ua Chamber Food and Beverage Committee

glutens, food additives, clarity and transparency in informa- To address the labeling issue that the Law of Ukraine tionProduct disclosure). labeling, alignment with EU legislation (GMO, #5029-VI “On Foundations of State Language Policy” has Attendees agreed to work on harmonizing Ukrainian laws caused, the following took place: with European legislation. The participants agreed to study - The official interpretation of the Technical Regulation on- the current situation in Ukraine and identify the main risks. Food Products Labeling was received; - A legal analysis of Article 26 of the Law “On the Founda- tionsing a response);of State Language Policy” was sent to the Ministry of October 2: a meeting took place Mr. Gennadiy Kuznetsov,- - EconomicA meeting Detookvelopment place with and Mr. T Ruslanrade of Bortnik, Ukraine co-author (it is await of Head of the Food Processors League and one of the authors of the Draft Law “On Information for Consumers on Food discuss the language in which instructions are to be ren- stuffs.”e H is cooperating with the Ministry of Healthcare, thew La “On the Foundations of State Language Policy,” to and4. discussed Working amendments Group on Streamlining to the Draft Law. Alcohol Produc- tion and Circulation Issues possibledered; an new agr amendmentseement was r thateached are betwnow beingeen the drafted. Food and Beverage It was agreed Committee to draft and a position the H ealthcarepaper on cancellingCommittee man on- Meeting: September 13th Ledy b Peter Chernyshov, Vice President, Carlsberg Group datoryNote: GMO on October labeling 3 andthe CMUsend approvedit to the C theMU Draft; to support the letter the notesEastern from Europe the list of strictly accountable documents was Draftof support Law onwill the be GMOsent to issue. the Verkhovna Rada A Chamber Position Paper on exclusion of consignment There will be drafted an update on the responsibility - sent to the Prime Minister on September 27; - Development of a new version of the Draft Law “On Nov erinaryof contr ollingand Phytosanitary bodies (the Ministr Service,y ofthe H ealthcare,State Sanitary the Stat ande el o FInoods” progress: t br theing Chamber it into compliance will invite the with author Regulation of the Draft EC Inspection on Consumer Rights Protection, the State Vet №258/97Law/representatives was discussed of the National Commission on Codex labeling that the effective legislation stipulates. Alimentarius for a meeting EpidemiologicalAfter legal analysis Service, of theetc.) responsibilities within the framework that that of state the The vinegar issue was discussed (vinegar is made from authorities proposed, further action will be planned accord- alcohol leftovers; a product made partly from raw materials of non-agricultural origin should not be labeled as vinegar session). ingly (e.g., which organization should be invited for a Q&A

128 ANNUAL REPORT /2012 www.chamber.ua Chamber Food and Beverage Committee

but as acetic acid; furthermore, the nature of its origin must - nian manufacturers for producing low-quality cheeses that Carlsberg Ukraine and the Chamber intend to invite an Being) declared the artificial “cheese war,” blaming Ukrai be specified). Ukrainian origin has been put on hold. - do not meet safety requirements. The export of cheese of gianofficial food from and Geor beveragegia to shar industry.e that country The Chamber’s experience is waiting with the successful and competitive reorganization of the Geor ThisTheseo contradicts tw organizations WTO regulations. created obstacles for Ukrainian exporting6. Working companies Group wonho Price seek Controlsto obtain and import Antimonop licenses.- for a response to the letter it sent to His Excellency Grigol oly Legislation Katamadze, Ambassador Extraordinary and Plenipotentiary On August 23 the Chamber organized a meeting of of Georgia in Ukraine. Chamber Food and Beverage Committee Members with Inviting a PwC representative from the Moscow office to- one of the co-authors of the Law, Ruslan Bortnik. To stan),deliver including a lecture positive to familiarize and negative Chamber changes Members for manufac with the- turersexperience and importers of the Customs of food Union and alcoholic (Belarus, and Russia, non-alcohol Kazakh- ic beverages. The Chamber is awaiting information on the themake suggestion the Law’s was provisions made to onseparate labeling the mor provisionse acceptab regardle to- cost of the lecture and a possible discount. business and to consider the position of the Law’s authors,

the need for a duty for beer brewers intended to support domesticHops issue: hops. decreasing the import tax on hops, reviewing 5. Working Group on External Trade Issues: the WTO and the Customs Union

- Al smal meeting took place with Ms. Kateryna Kryuchko, meetingStrategy willand beMar scheduledketing Di inrector, due course.Ukrproduct Group Limit ed. The main problems in the area were discussed. The next - Main problems identified: Recently ROSSELKHOZNADZOR (Russian Federal Ser- vice for Veterinary and Phytosanitary Surveillance) and ROSPOTREBNADZOR (Russian Federal Service on Custom ers’ Rights Protection and Surveillance of Human Well- 129 ANNUAL REPORT /2012 www.chamber.ua Chamber Food and Beverage Committee

ing the language for labeling commodities and the language 1. Participants agreed to compile a single list of socially to be used in users manuals into two different paragraphs, important food products - ing to the government why certain types of food product a) Paragraph 3 of Article 26. with strong arguments explain as follows: the list. The Chamber continues to work on this issue. have2. beenThe needidentified to amend as socially the impor Law tantof Ukraine and included #5029- on state“3. languageLabeling ofmay goods be accompaniedshall be made by in thetranslations state language. in re- VI “On the Foundations of State Language Policy” was At gional the discrlanguagesetion ofor the in ethnicgoods minoritymanufacturers, languages the tasext well in the in -

be rendered in any language at the discretion of their manu- agreedy b the Committee Members and the Law’s co-au other languages. Labeling of goods for export purposes shall thor; the suggestions were included in Draft Law #11185 b) Paragraph 4 has been added to Article 26. 2012.“On Amendments to the Legislation of Ukraine (Concerning facturer.” the Improvement of the Language Policy)” of September 6, language and in a regional language or an ethnic minority business community from the negative impact of Article 26 language“4. The (at dir theections discretion for the of use the of manufacturer). goods shall be in At the the stat dise- The Food and Beverage Committee has protected the

and in regional or ethnic minority languages may be accom- andofw La user of manuals Ukraine is#5029- in the VIstate “On language the Foundations and regional of Stat lane- cretion of the manufacturer, the text in the state language Language Policy” stipulating that “Labeling of commodities

paniedy b text in other languages. The directions for the use guage,The or negative the language repercussions of the minority…” of this for the industry of goodsThe amendments for export purposes agreed shall during be inthe any meeting language.” with Mr. include: Bortnik on August 23 have been included into Draft Law - losses due to the fact that trade turnover/sales will be put #11185 on Amendments to the Legislation of Ukraine on hold given an absence of compliant labeling; write-offs (Concerning the Improvement of the Language Policy) of September 6, 2012 initiated by People’s Deputy Vad- labels; returns and write-offs of already manufactured im Kolesnichenko. productsof significant that vbearsolumes non-compliant of unused pack labelingaging andmat erialsis already and Another Working Group Meeting took place on Sep- in warehouses and retail establishments; huge short term tember 6 costs across many categories of products, including food, costs that customers will ultimately bear; ,y led b Oksana Dyagilyeva, METRO Cash & Carry Ukraine Ltd. Two main issues were discussed:

130 ANNUAL REPORT /2012 www.chamber.ua Chamber Food and Beverage Committee

- the need for products to have different labeling for regions and even sub-regions, cities and towns with different re- -

propositions,gional languages and andcosts the will need be passedto produce directly oversized on to conuni- versal multi-language labels – both of these are expensive - trans-regional shipments of production are impossible withoutsumers, raisinguniversal prices labels and and stimulating given the inflation; need to approve - ing the introduction of new products to the market and cre- many various types of packaging – this causes delays dur - increased opportunities for corruption and increased pres- atessure significanton entrepreneurs technical in barriersthe light forof labelingimported violations products; on the part of domestically produced or imported goods. This issue needs to be addressed on a permanent basis - munity. The Chamber has applied for membership in the until it is finally solved to the benefit of the business com Prime Minister of Ukraine Raisa Bohatyryova. Working Group to amend the Language Law headed by Vice

131 ANNUAL REPORT /2012 www.chamber.ua Chamber Fuel and Energy Committee

Responsible Board Member: Electricity sector - Ukraine els and eliminating all types of cross-subsidies. Co-chairs:Jorge Zukoski, American Chamber of Commerce in • Increasing household tariffs to economically justified lev

Polina Schelkova, Shell • Implementing a new incentive tariff methodology aimed Secretary:Alfiya Jumayeva, AES Ukraine at attracting investment, modernizing assets, and boosting agreementsenergy efficiency. and balancing the market. • Electricity market restructuring: implementing bilateral- MissionVitaliy Radchenko,: To promote CMS Cameron further development McKenna LLC and mod- odology. - • Implementing connection rules and a connection fee meth ment, in support of the vision of a more energy self-reliant Committee Achievements Ukraine.ernization of Ukraine’s energy sector by attracting invest • POLICY WIN: Official Announcements of the Results of Tenders for Concluding Hydrocarbon Sharing Agree- Current Committee Priorities: ments - Upstream sector bying campaign and a high level policy dialogue with key UkrainianAn extensive decision Chamber makers F uelhas and resulted Energy in C theommittee announce lob- transparency of tender procedures. • Improvement of PSA-related legislation and ensuring the Midstream sector • Work on the subsoil legislation of Ukraine. equal access to infrastructure. • Work Downstream towards liber sectoralizing the gas market and providing

• Harmonizationsystem. of Ukrainian oil product standards with those in the EU and establishing an effective quality control

132 ANNUAL REPORT /2012 www.chamber.ua Chamber Fuel and Energy Committee

ment of two tenders to conclude production sharing agree- Draft Law ments on shale and natural gas, coalbed methane, crude oil, #10338 “On Amendments to the Law of Ukraine on Nat- uralOn Monopolies June 21 the Regarding Verkhovna Incentive Rada adopt Regulation.”ed The American Chamber of Commerce in Ukraine (Cham- and condensate on 6,324 square kilometers of Oleska field ber) supports this progressive piece of legislation and con- • and POLICY 7,886 WIN: square Government kilometers ofPublishes Yuzivska Officialfield. Results of siders it an important step towards the transition to an in- Two PSA Tenders centive tariff methodology that will foster stable investment in the electricity sector of Ukraine, provide the security of concluding hydrocarbon sharing agreements for the Oles- networks and electricity supplies, and ensure the proper Ony Ma 16, 2012 the official results of the tenders for functioning of the domestic electricity market.

ka and Yuzivska fields were announced by Mr. Eduard • POLICY PROGRESS: Verkhovna Rada Significantly Stavytsky, Minister of Ecology and Natural Resources, at an Improves Taxation of Subsoil Use Payments official press conference. He stated that Shell had won the Draft Law PSA The tender tenders for thetook Y uzivskaplace in field the wakeand C hevronof Cabinet had of w Minison for- #10224 “On Amending the Tax Code of Ukraine (on the the Oleska field. Ony Jul 5 the Verkhovna Rada adopted - ters Resolutions #1297 “On Holding a Tender for Sharing- Hydrocarbons to be Produced at Oleska Field” dated No Novembervember 30, 30, 2011 2011. and #1298 “On Holding a Tender for Shar ing The Hydrocarbons Chamber has to been be Pr continuouslyoduced at Y uzivskaengaged Field” in ensuring dated that the current PSA tenders were announced by the coun-

• try’s POLICY leadership WIN: Chamberand implemented Lobbying successfully. Campaign Results in Adoption of Draft Law #10338 “On Amendments to the Law of Ukraine on Natural Monopolies Regarding In- centive Regulation”

133 ANNUAL REPORT /2012 www.chamber.ua Chamber Fuel and Energy Committee

State Tax Service of Ukraine with Regard to Administra- tive Reform Performing).” Committee actively participated in developing the amendments and provided recommendations The Chamber on Fhowuel andto improve Energy the provisions related to the oil and gas sector, in particular

with respect to taxation of subsoil use payments. As a result recommendations.of the Chamber’s active dialog with policy makers, the Rada adopted the Draft Law, taking into account certain Chamber • POLICY PROGRESS: Verkhovna Rada Passes Two Pro- gressive Draft Laws on Improving PSA-Related legislation

On September 18 the Verkhovna Rada adopted Draft- Laws of Ukraine #11120 “On Amendments to the Tax Code- of Ukraine Regarding Product Sharing Agreements’ Conclu sion and Execution” and #11213 “On Amendments to Cer Chambertain Legislat of Commerceive Acts of Ukrin Ukraineaine Regarding (Chamber) Product strongly Sharing sup- Agreements’ports these pieces Execution” of legislation. in the first reading. The American

134 ANNUAL REPORT /2012 www.chamber.ua Chamber Hospitality and Tourism Committee

Responsible Board Member: - ance for travel agencies and operators. Co-Chair: • Identifying and discussing the problem of liability insur- Steven Fisher, Citibankavel HRG Ukraine ance. Secretary: • Identifying and discussing the problem of tourist insur Valeria Luyk, Sky Tr - • The National Tourism Development Program. MissionOleksiy Evchenko,: ArtBuild Hotel Group - • Drafting a Committee position on the new Law “On Tour mittee was created to encourage the participation of Cham- ism.” The Chamber Hospitality and Tourism Com • CommentingLobbying Engagements: on the Draft Law “On Tourism Resources.”

ber Members in an organized policy initiative to promote- hospitality and tourism in Ukraine. The Hospitality and roundtable on the topic “Kyiv: The Tourism Future.” The Tourism Committee’s goals and objectives include increas- • On American September Chamber 26 the of K yivCommerce City Stat ein A Ukrainedministration joined he withld a menting Ukr ofaine’s the Ukrainian participat businession in int andernational leisure hospitality hospitality infra and- representatives from the city administration, the State structure;tourism or ganizationssimplifying andthe bureaucraticforums; promoting requirements the develop that - - ing the ready availability of international standard business Agencyel companies on Tourism recent and discuss Resorts, issues the pertainingGerman De tovelopment tourism facilities;foreigners promoting who want tUkraineo travel inas Ukr a desirableaine most destination fulfill; increas for Agency (GIZ), the Embassy of Sweden in Ukraine, and trav international holiday travelers; and sharing knowledge and infrastructure of Ukraine in general and in Kyiv specifically. and hospitality arenas. experience among Chamber Members involved in the travel Current Committee Priorities:

- • Addressingtion system. VAT taxation of travel agencies and operators. • Developing a Committee position on the hotel classifica

• Preparing a position on income tax holidays for hotels.

135 ANNUAL REPORT /2012 www.chamber.ua Chamber Hospitality and Tourism Committee

Committee appealed to Mr. Borys Kolesnikov, Vice Prime • On Minister March and1, 2012 Minister the C hamberof Infrastructure Hospitality, asand well Tourism as to representatives of other relevant government institutions, -

regardingThroughout the thehotel year classi thefication system and the proce- ismdure Committee for defining Members hotel categories. monitored the legislative base in the hospitality and tourism Cindustry.hamber HTheyospitality also engaged and Tour in

aim of improving the acting legislation and developing new regulations.dialogue with legal experts and state authorities with the

Committee Meetings

and Tourism Committee took place. • Ony Ma 30 the regular meeting of the Chamber Hospitality-

• On March 21 the Committee meeting was devoted to the is insue Ukraine of categorization as it currently of ho stands.tels, to the recent changes to the Law of Ukraine “On Tourism,” and to the hospitality market-

• On and F ebruaryprovided 21 an the update Committee on legislative meeting addr developmentsessed the cat in egorization of hotels, overviewed the hospitality market,

light of Article 207 of the Tax Code.

136 ANNUAL REPORT /2012 www.chamber.ua Chamber Information and Communication Technologies Committee

Responsible Board Member: - Co-Chairs: • Mobile number portability and use of personal numbers; Dmitry Shymkiv, Microsoft Ukraine, LLC • International roaming regulation attempts – clarify the op Dmitry Popinako, Innoware anderators’ implementation; position; Secretary:Sergey Gavrish, Alcatel-Lucent Ukraine • Customer black lists – inter-operators’ database: feasibility- tion of nationwide roaming. • Clearance of and tender for 3G frequencies, implementa MissionVadym Shestakov,: To improve Danevych the environment Law Firm for the further devel- E-Government expertise opment of a sustainable and well-regulated information technolo- - gies and telecom sector in Ukraine. The ICT Committee sees its mis- ties regulating the ICT sector; sion to be lobbying the interests of Chamber Member companies • Establishing cooperation with the governmental authori operating in the Ukrainian ICT industry and providing the most authorities; sharing with them cases that embody the successful • Promotingimplementation e-government of e-government initiatives projects between in other various countries; Ukrainian

Currentefficient solutions Committee to various problems Priorities: that its Members face. with international ones) to enable practical e-signature • Lobbyinguse with fallor unificationUkrainian ofinstitutions, e-signatur eauthorities, standards (aligned banks, Legal and tax issues courts, etc. - ing standards in order to clarify the treatment of various • Developtypes of transactionsamendments with to the software Tax Code; licenses; foster local account

- • Improve and develop e-commerce legislation (e-payments); • Develop and lobby for necessary amendments to the cur balancedrentw La ofprocess Ukraine for “On the P practicalersonal Data implementation Protection” t oof br pering- ICT Committee sonalit in line data with protection best EU regulations practices and in Ukraine; ensure a smooth and

Telecom sector • Help improve new tax legislation for the IT sector.

• Rules and technical requirements for IMS architecture; 137 ANNUAL REPORT /2012 www.chamber.ua Chamber Information and Communication Technologies Committee

Start-up platform creation POLICY WIN: President Signs Law Providing for - Postponement of Responsibility for Violating Personal tors, and technological entrepreneurs. Data Protection Legislation. The American Chamber of • Establish a platform for a dialog among government, inves Commerce in Ukraine is proud to report that Law #4343- Market research VI “On Amendments to the Final Provisions of the Law of Ukraine ‘On Amending Certain Legislative Acts of Industry Report Ukraine Regarding Enhancement of Responsibility for • Chamber Information and Communication Technologies- Violation of Legislation on Personal Data Protection‘ to tively working within the ICT Committee. The Working Postpone Its Entry into Force” The Working Group on Personal Data Protection is ac consideration and was signed by the President of Ukraine. operational conditions related to personal data protection The Chamber considers this to be d passea positive the move, final onestage that of byGroup’s applying acti vitiesinternational aim at bestimpr practices,oving legislat includingive nor developms and- provides business with additional opportunities to switch ment of industry codes of conduct. to the new personal data protection regulation rules. The - - The Chamber Working Group on Personal Data Protec Law postpones entry into force of the said legislation by six tion took active part in the adoption of the Law “On Person months, moving it from January 1, 2012 to July 1, 2012. al Data Protection,” which incorporates European norms. CodeJointly of with Conduct the Staton Cross-Bordere Service on PTransferersonal ofData Personal Protection, Data. TheMembers Code includesof the W orkingan agreement Group elabon personalorated the data Corporate transfer to countries that have not acceded to the Convention for the Protection of Individuals with Regard to Automatic Process- - col to the Convention for protecting individuals with regard toing automatic of Personal processing Data (ETS of #108) personal or t odata the additionalregarding superProto- - troller and controller/controller and processor. visory authorities and transborder data flows between con

The Telecommunications Working Group was also tasked at the beginning of the business year to cover the telecom sector’s priorities in the context of the ICT Committee priorities. 138 ANNUAL REPORT /2012 www.chamber.ua Chamber Information and Communication Technologies Committee

- tion was active in advocating for the adoption of this impor- The Chamber Working Group on Personal Data Protec

tant piece of legislation. Once the Draft Law was registered the Working Group responded immediately, addressing Mr. Draft.Volodymyr Lytvyn, Speaker of the Verkhovna Rada, and the POLICY heads of ENGAGEMENT: all the Rada’s party Personal factions, Data in Protection. support of theOn

June 27 the Chamber expressed its support forMr. Dr Maxymaft Law Lutskyi,#10472 “OnHead Amendments of the Parliamentary to Certain CommitteeLegislative onActs Sci of- enceUkraine and R egardingEducation. Personal Data Protection” to

139 ANNUAL REPORT /2012 www.chamber.ua Chamber Intellectual Property Rights Committee

Responsible Board Member Mr. Dmitry Shymkiv, Microsoft Ukraine the Draft Law “On Franchising,” in conjunction with the Fed- Co-Chairs erationDisputes: for Pr oblemsFranchising and Pr Development,ospects” as well Hospitality, as to the discussion and Infra of- Mr. Michael Doubinsky, Doubinsky & Osharova, structure. - The Chamber lobbied for Chamber Member interests regard- ners #10047 on criminal responsibility for IPR vio- Secretary:Mr. Taras Kyslyy, Egorov Puginsky Afanasiev & Part lations and received feedback from government authorities ing wthat Dr Chamberaft La proposals will be considered when a decision is

MissionMr. Yuri Omelchenko,: To advocate Microsoft on behalf Ukraine, of Chamber LLC Members for the proper protection of intellectual property rights in Ukraine. made regarding the Draft Law. - POLICY ENGAGEMENT: Criminal ResponsibilityMr. Viktor fShvets,or IPR ulatory system with regard to IPR, so as to increase economic ViolationsHead of the Committee on Legislative Support of Law En- competitivenessThe Committee’s and main create goal isincentives to improve for the innovations. legislative and reg forcementOny Jul 11 of thea C hamberVerkhovna Lett Radaer was sent to

Current Committee Priorities: , regarding Draft Law #10047- “On Amendments to Certain Legislative Acts of Ukraine Regarding - Humanization of Criminal Responsibility in the Field of Intellec sues; tual Property” with a request to withdraw this legislation. • Build strong relations with the key policy makers on IPR is

• Develop proper IPR-related tax and accounting procedures; • Solve pharmaceutics IPR-related producers); issues in customs policy as regards some specific chemistry-based economic sectors (herbicides and Intellectual • Promote adoption of Draft Law #6523 “On Amendments to Property Rights ChamberCertain Legislati Members.ve Acts Regarding the Regulation of Issues of Committee CopyrightThe IPR andCommittee Related took Rights” part with in several amendments events suggestthat covereded by -

the sector. It contributed to the discussion “Current State of Liti gation Relating to IPR Protection of Pharmaceutical Companies’ 140 ANNUAL REPORT /2012 www.chamber.ua Chamber Logistics and Transportation Committee

Responsible Board Member - - Co-Chairs: The Logistics and Transportation Committee promotes opti- Jacquot Boelen, METRO Cash & Carry Ukraine mization in supply chains with the help of electronic data inter forchange collaborative (EDI) technologies management and along the ethexpansion supply ofchain, efficient promotes con Secretary:Vladyslav Karpets, Coca-Cola Beverages Ukraine Limited thesumer removal response of unnecessary (ECR), a mo costs,vement and that presents provides a new new level principles of re- Michal Janikowski, METRO Cash & Carry Ukraine sponse to consumer demand.

MissionOleg Kalenskyy,: UVK - Lobbying Engagements: - To create a communication platform for experi andence solutions exchange to betw themeen in logistics order to companies, develop absolutely express deli transparentvery car Working Group on Drafting Amendments to the Law on riers,G FMC companies, and retail chains; to discuss logistics issues- • On Automobile August 22 Transport the Chamber under participat the auspicesed in a meeting of the Minis of the- ity and the state in general. try of Infrastructure. Mr. Dmytro Petukhov, Director of and beneficial rules of the game for participants in economic activ the Department of Automobile Transport of the Ministry Current Committee Priorities: includes representatives of different government bodies, - of Infrastructure, chaired the meeting. The Working Group- cluding roads, hubs, railway, seaports, container shipping tions. It focuses on certain issues connected with internal • Developmentfacilities, etc.). of the logistics infrastructure in Ukraine (in businessand international associations, transportation organizations, of passengers and science and institufreight, - technical regulation, insurance, compensation, licensing of

• Expansionmanagement, of the and effi supplycient chainconsumer management. response (ECR) move ment in Ukraine by improving data exchange, category- cal market (both forwarders and haulers, including special Logistics and • Development of solid transportation companies on the lo transport). Transportation logistics in Ukraine. Committee • Implementation of new standards for national cold chain

• Improvement of fiscal management in transportation.

141 ANNUAL REPORT /2012 www.chamber.ua Chamber Logistics and Transportation Committee

and rules for freight transportation, relationships between - carriers and state authorities, etc. ing of the Working Group on Organizational and Tech- • On nical August Preparation 16 the Chamber for the participat Introductioned in an of e xtendedTransparent meet Committee Meetings: Mechanisms for Private Investors Operating Port Facili- Joint Meeting of the Chamber Logistics ties. It was co-chaired by Mr. Dmytro Demydovych, Deputy and Transportation and Agricultural Committees was Minister of Infrastructure, and Mr. Volodymyr Sevriukov, • Ondevoted June to20 thethe issues of freight transportation by rail and Director of the Department of State Policy on Sea and River recent reform of the railway system. Mr. Oleksandr Kon- Transport of the Ministry of Infrastructure. The meeting was drat, Deputy Director of the Department of Economics devoted to investment opportunities at seaports (objects for and Finance, Ministry of Infrastructure, participated. concessions), as presented by the top management teams of Chamber Logistics and Transporta- tion Committee meeting was devoted to the discussion of Mr. Volodymyr • On 2012 Mar Committeech 29 the priorities and Committee activities that Lytvynall of Ukraine’s commercial seaports. r. Borys Kole- would lead to the improvement of transportation market • On snikov August 9 the Chamber addressed and attract more investments in Ukraine. and Mr., MykhailoChairman ofMyronenko the Verkhovna Rada, M Chamber Logistics and Transportation Committee, Vice on Prime Transport Minist ander and Communications, Minister of Infr astructure,with a Po- Committee Meeting was devoted to discussion of the cur- , Head“On of theAmendments Parliamentary to • On February 1 the the Law of Ukraine ‘On Seaports of Ukraine’ Regarding Guaranteesition Paper of on the Dr aftConstitutional Law #10655 Rights of Citizens of rent situation pertaining to seaport regulation after Draft Law Ukraine with Respect to their Labor Rights and Prop- #0881 “On Seaports” was rejected on January 16, 2012 and erty Rights.” The Position Paper states that, if adopted as discussednew Draft theLaw proposals #9712 “On to Seaports” the Draft w Lawas submitt “On Containered to the Shipping”Verkhovna thatRada the by theMinistry Cabinet of of Infrastructure Ministers. Participants developed. also The Chamber Working Group on Seaport Development activitiesproposed, of the private bill could enterprises disrupt operating the reform within that or the around Law ports.on Seaports launched, and could significantly impede the Draft Committee.was established It has in been May actively2011 under advocating the leadership for a special of Ms. legislative Viktoria Law #9712 “On Seaports” to Mr. Volodymyr Lytvyn, Papenkova, former Secretary of the Logistics and Transportation • On April 12th the Chamber addressedMr. itsBorys opinion Kolesnikov on , Minister of Infrastructure; and Mr. Mykhailo Myronenko, basis Lobbying for the dir Engagementsect regulation of seaport activities. On May 17 the Chairman of the Verkhovna Rada; President of Ukraine signed the relevant Law. Head of the Parliamentary Committee on Transport and 142 ANNUAL REPORT /2012 www.chamber.ua Chamber Logistics and Transportation Committee

Communications. The Chamber appealed for the Rada to seaport areas; private marine terminal security; and internal adopt the legislative act and introduce long awaited port management of handling goods. reform to Ukraine. Chamber Working Group on Seaport Working Group Meetings: Development meeting was devoted to development of Chamber Working Group on Seaport De- • On February 23 the - velopment meeting was devoted to further actions the - • On June 26 the - the Chamber Position regarding Draft Law #9712 “On Sea- ports,” sition were which investor the Verkhovna property R adarights; passe thed seaportin its fir council;st read Group would take in regards to Law #4709-VI “On Sea- ing on February 21. The key principles in the Chamber Po ports of Ukraine.” The meeting also discussed the recent provision at seaports; and inclusion of private marine ter- Constitutionappealy b People’s of Ukraine Deputies and of with Ukraine newly to thesubmitted Constitution Draft artificiallyminals in the created seaport land; infrastructure. seaport practice; security service al Court regarding the nonconformity of this Law with the - - lative framework and the regulatory acts related to seaport infra- Law #10655 “On Amendments to the Law of Ukraine ‘On structureThe W orkingdevelopment. Group will It will continue also continue to work to t oimprove improve regulation the legis Seaports of Ukraine’ Regarding Guarantee of the Constitu of container shipping, to foster introduction of concessionary ten- tional Rights ofChamber Citizens Working of Ukraine Group with on R Seaportespect t oDevel their- ders, to promote interaction between railway and seaports, etc. opment’sLabor Rights meeting and Property was devoted Rights.” to the development of the • On April 4 the which aims to launch seaport infrastructure reform Ukraine. Chamber PositionChamber regarding Working Draft La wGroup #9712 on “On Seaport Seaports, De”- velopment meeting was devoted to the development of the • On March 6 the The key principles in the Chamber Position were inclusion ofChamber private P ositionmarine regardingterminals Dr inaft seaport Law #9712 infrastructure; “On Seaports. the” creation and subsequent use of hydraulic structures both in

ofseaport private w atersport operatorsand beyond, in portbuilt development; at the expense the of creation private investors before the Law comes into effect; the involvement

and subsequent use of artificially created land plots within

143 ANNUAL REPORT /2012 www.chamber.ua Chamber Real Estate Committee

Responsible Board Member - - Co-Chairs • Fosteringpose of land consi usestent within applicat one category;ion of land plot categoriza Ian Borden, McDonald’s Ukraine tion, emphasizing that there is no need to change the pur- ables development; SecretaryAndriy Lukianenko, McDonald’s Ukraine • Enhancing existing land legislation to stimulate renew AdrianTimur Bondaryev, Opaits, PwC Arzinger the land lease renewal process more transparent; and • Improving the legislation on land lease regulation to make Mission: in the construction sector. - • Improving the legislation aimed at simplifying procedures tween ChamberThe Members Chamber involved Real Estat in thee C realommittee estate sphere;sees its Committee Achievements: goals as follows: to share information and experience be to make the necessary changes to Ukrainian legislation, POLICY PROGRESS: whichto cooper willate promote with legislat real estateive and development executive bodies in the country;in order “On Amendments to the Land Code of Ukraine Re- to reduce the bureaucratic obstacles involved in real estate • garding Acquisition Onof LandOctober Ownership 2 the Draft Rights,” Law #11128 which transactions; to foster transparency in real estate transac- - tions; to facilitate foreign investment in Ukrainian real es- - tate development projects; and to foster the availability of amendseign capital Article from 82 owning of the non-agriculturalLand Code of Ukr landaine was by rpassedemov ing excessive obstacles preventing legal entities with for has been actively advocating for a free and effectively func- in the first reading by the Verkhovna Rada. The Chamber Currentlong term financing Committee for real Priorities: estate projects. -

- • Providing Allowing foreign comments companies on the Drtoaft buy La non-agriculturalw “On the Land Marland forket,” commercial emphasizing purposes; the following issues: Real Estate - Providing the possibility of transfer lease rights to state/ municipal land; Committee - Developing clear and transparent land auction procedures.

144 ANNUAL REPORT /2012 www.chamber.ua Chamber Real Estate Committee

tioning land market and strongly supports the adoption of Lobbying Engagements:

POLICY ENGAGEMENT: - Ukraine.the Draft Law, as it will lead to an increase of investment flow and boost transparency in non-farmland relations in • yOn Jul 13th the Chamber ad OLICY WIN: “On Amend- dressed a Letter to the President of Ukraine supporting the ments to the Land Code (On Holding Land Auctions), Draftw La “On Amendments to the Land Code (On Holding • Pincluding Chamber-proposedOn August 15 Laamendments,w #5077-VI was signed by conditionsLand Auctions).” for land The market Chamber development made clear in that Ukraine it consi andders for the President of Ukraine. ” athe standing Draft La legislativew an esse mechanismntial step towards for holding creating land fauctions.avorable

POLICY PROGRESS: STAKEHOLDER INTERACTION: Mr. Ian Bor- “On Amend- den, Chairman of the Chamber Board of Directors, Co- • ments to the Land CodeOny Jul (On 5 theHolding Verkhovna Land R Auctions).”ada passed • Chair of the DFIAC Infrastructure On DevelopmentJune 7 Work- Itin establishesthe second ar eadinglegislative Draft mechanism Law #10231-3 for selling and pur- ing Group, McDonald’s Ukraine, stated the importance of chasing land plots by holding tenders with the purpose of land market improvement while participating in the sec- forming a complete regulatory framework for carrying out land auctions in Ukraine. Advisory Council chaired by the President of Ukraine. ond Plenary Session of the Domestic and Foreign Investors POLICY PROGRESS: On March 13th STAKEHOLDER INTERACTION: On May 22 the Cham- “On Amend- • ments to the Law of Ukraine ‘On the the List Verkhovna of Permission Rada • - Documentsadopted in the in firthest Spherereading of Dr Economicaft Law #9693 Activity’ Regard- sonalber R ealmeetings Estate with Committee Mr. Serhiy advocated Tymchenko, for the Head introduction of State ing the List of Documents.” It stipulates a reduction of the Agencyof amendments of Land t oResources the Land Cofode Ukraine. of Ukraine The duringCommittee per list of permits for the leasing or sale of land plots in state raised the importance of giving Ukrainian companies with - land in Ukraine. and municipal ownership. The Chamber Real Estate Com 100% foreign investment the right to own non-agricultural themittee transferability considers this of landDraft lease Law rightsto be toan state/municipalimportant step STAKEHOLDER INTERACTION: On April 26 the lands.towards accomplishing a Committee priorities: ensuring an • overview of recent changes in land legislation, in particu- Chamber Real Estate Committee held a meeting devoted to

145 ANNUAL REPORT /2012 www.chamber.ua Chamber Real Estate Committee

Ms.lar the Tetyana Draft La Symchyshyna,ws “On Land Market” and “On Amendments to the Land Code (On Holding Auctions).” Participating was State Agency of Land Resources Head of of Ukraine the De.partment for Legal Support of the Land Market and Assessment of Land, POLICY ENGAGEMENT: On April 10 the Chamber addressed Mr. Grygoriy Kaletnik • , Head of the Parliamentary“On AmendmentsCommittee on toAgricultur the Landal Code Policy of Ukraineand Land Regarding Relations the of ProcedureUkraine, with for a Conducting Position Paper Land on Auctions.” Draft Law #10231

POLICY ENGAGEMENT: On March 23 the Chamber addressed Mr. Oleksandr Popov, Head of the Kyiv City State Administration,• with proposals on developing cooperation - suring clear and transparent procedures for land auctions heldbetween in the the city. Chamber and Kyiv Administration aimed at en

STAKEHOLDER INTERACTION: meeting devoted to considering the Business Centers Clas- • On February 24Up a- dated Office Buildings Classification adapted to the cur- sification took place. Attention went to developing an and used by key market players. rent office market conditions that are commonly accepted

146 ANNUAL REPORT /2012 www.chamber.ua Chamber Working Groups

Legal-Related Working Groups Antimonopoly Working Group Responsible Board Member - Mr. Serhiy Chorny, Bak- Head of the Working Group

Working Group Mission: - Eduard Tregubov, Salkom er & McKenzie CIS LawThe Firm W - The Chamber Legal-Related Working Groups originated tion pertaining to economic competition protection and main- in the Chamber Legal Committee, which was created as a tains closeorking contacts Group with concentr the government.ates on r eformingAmong other the legislathings, broadforum rangefor pr ofessionalof legal professionals exchange among working at torneysin the country. from law - firms and local companies. The Working Groups include a tivities of the Antimonopoly Committee of Ukraine and its priorities.the Working It will Gr remainoup contribut engagedes in t ofostering greater anawareness effective of dialogue the ac Anti-Corruption Working Group between the authorities and the business community. Head of the Working Group Working Group Mission: Working Group on Bar Legislation To provide a general overview - Y ofaroslav the situation Petrov, Ast pertainers - Head of the Working Group aimed at counteracting corruption; to identify potential lob- Working Group Mission: - Olexander Martinenko, ingo bying t activitiescorruption in inthis Ukr regard.aine; to provide specific legislation CMS Cameron McKenna LLC Activities in 2012: - - risters,The toW orkingthe legal Gr statusoup concentr of the barates and on barristers,bar legislation to the in scopeUkraine of ings participants heard a review of recent legislative de- (including issues pertaining to the definition of the bar and of bar- velopmentsOver 2012 insix the Working corruption-fighting Group meetings sphere,took place. listened Meet rister activities, etc.). It elaborates proposals and amendments rel- to different presentations, and discussed a number of evantbarristers’ to th eauthority legislative, t oand the regulatory official registration framework pr inocedure this sphere. for bar current issues in this sphere. - Chamber Working Group on Internal Trade The Anti-Corruption Working Group addressed the Parlia Chamber Work andmentary Defense Committee Council on in OrMayganized with a C letterrime C raisingontrol anda number Fighting of with the goal to encourage the participation of the Chamber Corruption, the Ministry of Justice, and the National Security ing Group on Internal Trade as created framework for functioning of internal trade in Ukraine by working Members in an organized policy initiative to improve legal issues that the Anti-Corruption Working Group had defined. withdrawal from the Parliament of Ukraine. It received replies from these state authorities in June. on the improvement of the Draft Law “On Internal Trade” or its 147 ANNUAL REPORT /2012 www.chamber.ua CHAMBER KNOWLEDGE SEMINARS AND TRAINING PROGRAMS

148 ANNUAL REPORT /2012 www.chamber.ua Chamber Knowledge Seminars and Training Programs

hamber Knowledge Seminars • “PPP-Projects: Legal Status Quo for 2012” areas of business, mainly those that pertain to the This seminar lent an expert view of PPP projects in CChamber Policy Priorities for 2012. focus These on specificevents Ukraine, particularly of the legal framework and proce- serve as another innovative tool that provides Members dures. The speaker highlighted recent changes in the private with a unique opportunity to obtain direct access to cutting- edge technologies and hear from true leaders in a number - of industry sectors. pantspartner learned selection about procedure housing and communal discussed PPPinfrastructure efficiency - andanalysis the repairand the of PPPwater risks supply identification facilities. procedure. Partici ber, companies and organizations can gain from co-orga- • “Tax Evasion - In Light of Court Practice” nizingAlong Chamber with the Knowledge other benefits Seminars. of being This a Chamberallows them Mem to This seminar concentrated on tax evasion, neglect of of- share their experience, present best practices and new approaches in the market, discuss new ideas, share know-how, and so on. taxficial crimes, duty, null forgery agreements, in office, and and fake the transactions. misappropriation of Many important issues and areas undergo discussion property through abuse of office. It covered such issues as during the events, helping Members’ employees to continue Chamber Training Program to professionally develop, grow, and compete. “Effective Leadership” Chamber Knowledge Seminars take place in two Cham- ber facilities: the Chamber Conference Facility and the Chamber Reception Hall. Each can accommodate approxi- mately 80 persons. Chamber Knowledge Seminars represent another tool that helps employees of Chamber Member Companies to develop a goal-attainment mindset, remove counterproduc- tive barriers to success, and understand how small changes can make big differences. The Chamber Knowledge Seminars held in 2012 included the following:

149 ANNUAL REPORT /2012 www.chamber.ua Chamber Knowledge Seminars and Training Programs

• “Current Issues in the Taxation of Representative cus on various aspects of personal growth and on the devel- Offices of Non-Resident Companies” opment of personal soft skills. The Chamber Training Pro- This seminar focused on the tax issues that representa- improve knowledge skills that help in accomplishing bigger, - long-termsgram is a “Members goals. The only” topics benefit of these provided programs to aredevelop based and on tiontive officesof operations (permanent for transfer and non-profit) of assets arising often duringface in liquitheir- the results of the Chamber Members’ Survey. dation.work. It Participants covered foundation also learned and moretax registration about the peculiariand taxa- ties of the income tax, VAT, and the personal income tax. The following Chamber Training Programs took place in 2012: • Best Corporate Practices in Compliance with FCPA, the UK “Effectiveness Beyond Time” Bribery Act, and Ukrainian Anticorruption Legislation” The Chamber, in conjunction with its Member DOOR, This seminar shed light on best practices in the context hosted this Chamber Training Program. The program was of FCPA, the UK Bribery Act, and Ukrainian anticorruption designed for young executives, managers, and employees legislation that major companies operating in Ukraine and who want to produce better results in less time and are de- - termined to execute their duties effectively while leaving corruption legislation in Ukraine. some time for themselves. overseas have developed. It gave an overview of recent anti The training program covered several major topics: Features of Communication Strategies of Large Compa- nies at the National and Regional Levels • This seminar addressed the main features of the com- • Our way of perceiving time; munications strategies of big business and discussed myths • ReasonsThe participants why we constantly learned about find ourselves various concepts lacking time; of time about big business PR implementation strategies. Common •perception Tools to enhance and their time impact, management reconsidered and self-organization; their time-man- problems with the implementation of PR strategies at large agement methods, found the quickest ways to determine as- companies were discussed and recommendations for PR pects that can be done better and more effectively, and were work at the regional level were provided. taught“Art howof Networking” to increase their activities efficiency. The Chamber Training Program, a great education- This seminar, which took place in March, gave partici- al tool, was successfully maintained by the Chamber and pants an excellent opportunity to learn how to success- Chamber Members DOOR and CBSD in 2012. The events fo- fully network and build business connections. Professional

150 ANNUAL REPORT /2012 www.chamber.ua Chamber Knowledge Seminars and Training Programs

DOOR Ukraine trainers worked towards the following training objectives:

and experience. • How to structure business networking knowledge, skills, order to achieve better results. • How to develop a behavior strategy at business events in-

• How to introduce yourself, your company, and your com termpany’s business services; relationship. how to do “small talk.” • HowThe to topic build was a “road a great map” success. to get Thefrom Chamber networking and to DOOR long Ukraine organized another “Art of Networking” training seminar in September.

“Communication Skills” The course goal was to implement company goals to develop employee skills in interactions with their colleagues, supervisors, and subordinates. Participants learned communications skills via role playing, work in groups, and presentations. They acquired the theoretical information necessary to improve their communications skills and were able to self-assess their skills and have their colleagues assess them. The course was given by Chamber Member CBSD and lasted two days.

Chamber Training Seminar “The Art of Networking”

151 ANNUAL REPORT /2012 www.chamber.ua CHAMBER BUSINESS NETWOR KING AND SOCIAL ACTIVITIES

152 ANNUAL REPORT /2012 www.chamber.ua Chamber Business Networking and Social Activities

he American Chamber of Commerce in Ukraine woulde lik to thank all its Sponsors and Part- Service Ukraine, Suntrade S.E./Bunge Ukraine, TNK BP Com- Tners for their valuable contributions to and curity services, SKY Travel HRG, Sportmaster Ukraine, Staff support of our events in 2012: 3M Ukraine, AES Ukraine, Alcatel-Lucent Ukraine, Amarcord-Lakomka, American merce LLC, Ukraine International Airlines, UPS, UVK, What’s Medical Centers, Arizona BBQ, Arlekin, Arthur Murray On,Chamber Winner Imports Capitains Ukraine, of WrigleyIndustry Ukraine, Events Zinteco. Dance Studios, Atmosfera restaurant, Auchan, Baker & McK- Chamber COI Event: Alfa Jazz Fest with the Chamber Commerce, Budweiser, Business Ukraine, Byblos, Cargill AT, The Chamber was excited to invite all Chamber Captains LLC,enzie Carlsberg - CIS Limited, Ukraine, Boris, Citibank, British-Ukrainian PJSC, ClearWater Chamber Ukraine, of Coca-Cola Ukraine Limited, D*Lux Complex, Danone, Delta Lviv to combine a bit of business and interaction with senior - of Industry (COI) and their spouses on a trip to beautiful cal, DHL Express Ukraine, DOOR Ukraine, DPD Ukraine, East program by participating in a unique one of a kind “Travel EuroAir Lines Foundation, Inc. represented Ernst & by Young, AVIAREPS Euro Group,Leasing, Delta Fairmont Medi withUkrainian the Chamber” officials extravaganza. as well as enjoy a high-profile cultural -

Grand Hotel Kyiv, FM Logistic Dniepr, Foodtourist, Gala Me dia Group, Galnaftogaz Concern PJSC, Hyatt Regency Kyiv,- evriantaIngo Ukraine, LLC, InterContinentalKinomania LLC, Kyiv,KLS, IstilKraft Telecom Foods Ukraine,Ukraina, KuvshinJT International restaurant, Company Kyiv-Atlantic Ukraine Ukraine, CJSC (JTI Kyiv Ukraine), Weekly, Lac Ki- - tronics Ukraine, Lucky Pub, Mai Thai Lounge Kyiv, Master Klass,talis-Ukraine, Maxi Card, Lafarge McDonald’s Gips, Lavina Ukraine, concert, Metro Leater, Cash LG& Carry Elec

Ukraine, Microsoft Ukraine, Nestle, Office Solutions Ukraine, Pfizer H.C.P. Corporation, Phoenix Center LLC, Platinum Bank OJSC, Premiere International, Premiere Palace, Procter Chamber “Holiday Wine Ukraine& Gamble LLC, Ukraine SC Johson, LLC, Publicis Shell, Shooters Visage, Pulse, CaterEvent, Puma Ukraine, Sich se- Tasting” COI Event PwC, Raben Ukraine, Royal Catering Services, Sanofi-Aventis 153 ANNUAL REPORT /2012 www.chamber.ua Chamber Business Networking and Social Activities

- The event provided an exclusive opportunity to meet in al music event – Alfa Jazz Fest which hosted such jazz-stars as an atmosphere characterized by elegance and relaxation at Chamber guests had a VIP access to an amazing internation- and its numerous rooms and premises. The beautiful hotel’s Kenny Garrett Quintet (USA), Richard Bona: Mandekan Cuba locationthe Fairmont let the Grand attendees Hotel Kyiv.enjoy Guests stunning got aviews tour ofof thethe hotel Dni- no ChamberOI(Cameroon C - Cuba), Event Cassandra Holiday WilsonWine Tasting (USA) and others. pro River, the city’s bridges, and the picturesque architecture of the surrounding churches and cathedrals.

beautifulIn 2012 and the sophisticated Chamber was Hyatt pleased Regency to organize Kyiv. During Chamber the Chamber Family Events COI Event “Holiday Wine Tasting” that took place at the an excellent opportunity to enjoy high-level targeted Busi- Chamber Members and their families enjoyed a celebration nessevent Networking, Chamber Captains wine tastingof Industry with andprofessional Ambassadors somme had- liers and a special wine tasting menu from the chef at Hyatt As a traditional celebration in Ukraine, Maslyana is a Regency Kyiv with food created to match the delicious wines greatof Maslyana chance at for Gourmet families Club to memberget together Kureni and restaurant. have some fun outside as they appreciate the last days of winter. All guests - Chamberoffered by Les “Business Grand Chais Leadersde France. League” sypayko and helped themselves to those traditional Masly- enjoyed a special entertainment program led by Igor Po Meetings Following the success of the Annual Appreciation Recep-

of the Business Leaders League for a celebration of the Asian Newtion, theYear Chamber in a high for level the Business first time Networking in 2012 gathered atmosphere. members On Thursday, February 9, the doors of Hyatt’s Brunello Bar were opened to over 110 guests from Chamber Member Companies - sive company to establish useful new business contacts. and a number of state officials. All took advantage of the exclu The Chamber happily opened the doors of the newly de- Chamber to all Chamber Business Business Leaders League signed Fairmont Grand Hotel Kyiv Meeting Leaders and Captains of Industry. 154 ANNUAL REPORT /2012 www.chamber.ua Chamber Business Networking and Social Activities

ana treats – pancakes! Kids and adults alike took part in fun “Welcome Summer” and festive activities. Of course, didukhs were burned at the “Life on Top” end of the event to welcome the arrival of spring. Chamber “Independence Day Picnic After-party” The Chamber, along with employees of Member Compa- Business Networking Cocktail nies and their families, spent a Saturday afternoon at the Chamber Annual Tropical Boat Cruise traditional “Easter Egg Hunt” Family Event at Matreshka Chamber Traditional “Welcome Back” Business Net- working Cocktail Chamber Members and their families and friends spent “Support Your Local Chamber of Commerce Day” therestaurant, last sunny a Chamber days while Gourmet cooking Club together Member and. enjoying Business Networking Cocktail Chamber “Halloween Haunted House” Costume Party Working with top cooks, kids learned the art of making su- Chamber “Get to Know the Candidates” Business Net- shitheir and favorite how to dishes make tastyat the fruit Chamber desserts Gourmet and participated Family Day. in working Cocktail numerous activities. Chamber Charitable “St. Nicholas Day” Business Net- working Cocktail Business Networking Cocktails Chamber Business Networking Cocktails are at the heart of all the event activities the Chamber has to offer. Organized

they create a vast platform for the Ukrainian business com- munitymonthly to at get a Chamber together, Gourmetbuild new Club contacts, Member and Restaurant, exchange ideas in a friendly informal atmosphere. Each cocktail party has an interesting theme and there are various networking activities, treats, and entertainment. Throughout 2012 the Chamber held 12 Business Networking Cocktails, attracting over 1,500 guests from Chamber Member Companies: Chamber “Welcome Back” Business Networking Cocktail Chamber “Mardi Gras” “St. Patrick’s Day” “Blossoming Spring” Chamber “Life on Top” BNC

155 ANNUAL REPORT /2012 www.chamber.ua Chamber Business Networking and Social Activities

Travel and Marketing Clubs Social/Family and Team Building Events The American Chamber of Commerce in Ukraine has been Chamber Marketing Club organizing annual indoor and outdoor football tournaments for many years. These fun sporting events provide excellent held yet another important Marketing Event in Kyiv – a Chamber team building and networking opportunities and have grown In April the Chamber in conjunction with its Member Pulse in size and popularity among Chamber Members, bringing This month we took an in-depth look at two heavyweight out the best the Membership has to offer. Each is an exciting contenders,Marketing Club both event of entitledwhom “Instanthold interest Sales vs. for Brand marketers Loyalty.” and competition that highlights sportsmanship and enables em- consumers alike: group sales and instant limited discount- ployees of Member companies to show off their talents.

a tried and tested method, though one that has been altered Football Tournaments ining its schemes strategy through and implementation. the Internet; Theand Marketing the loyalty Club program, introduced both contenders to the ring and showed their strengths 2012 Annual Chamber Indoor Football Champion- ship Cup - off Asto anusual, audience the event of professionals. was a nice Thenetworking fighters strutted opportunity their pionship Cup gathered 16 teams and lasted two weekends forstuff guests in a closely who got fought a chance battle to before enhance the theirfinal bell.useful contacts in aIn row. March All the2012 matches Annual took Chamber place inIndoor the professional Football Cham gym while enjoying complimentary beer from Carlsberg Ukraine, of the Sports Complex of T. Shevchenko National Universi- Shooters’ famous PUNCH, and soft drinks from Coca-Cola ty. The following participants took part in the tournament: Ukraine. And everybody left the venue with a gift from Pulse, Euro Leasing, UkrSibBank, Shell, Deloitte & Touche USC as a remembrance of the evening. - Travel with the Chamber PJSC, Sumitec Ukraine, PWC, HLB UKRAINE, the Embassy Beveragesof the French Ukraine Republic, Limited, DHL, Ernst KPMG-Ukraine & Young LLC, Ltd.,and the Schnei Em- Explore the Hidden Treasures of Georgia! Part II bassyder Electric of the Ukraina,United States Puma of Ukraine, America. ISTIL Group, Coca-Cola - Congratulations to the Winners! wasAfter once a againsuccessful happy trip to inviteto Georgia all interested in April 2011 Chamber the Cham Mem- 1st place: bersber, in to conjunction spend a wonderful with its Member weekend Sky exploring Travel HRG the Georgia, hidden 2nd place: Euro Leasing • 3rd place: ISTILHLB UkraineGroup much to see. • Best Player: treasures of Georgia, a country with an amazing history and • 156 ANNUAL REPORT /2012 • Sergiy Vasylko, ISTIL Group www.chamber.ua Chamber Business Networking and Social Activities

Best Fullback: Best Goalkeeper: tournament a successful one. Attendees enjoyed table ten- • Best Forward: Taras Gnatiuk, Euro Leasing nis,drive water from soccer, Kyiv. The tasty well-planned snacks, and paintballbeer and fieldssoft drinks. made the XI• Football Outdoor YevgenTournament Zinchenko, HLB Ukraine The• Chamber hostedYevgen the 11thAdamenko, Chamber ISTIL Annual Group Outdoor This year winners: Football Tournament, in which 10 teams proudly represent- 1st Place - Ernst & Young LLC ed their companies. The event highlighted team work and a 2nd Place - Sayenko Kharenko healthy lifestyle. This year the event took place at the foot- 3rd Place – Shooters

The following participants took part in the tournament: Chamber English Language Movie Premiere ball field of Sport Complex KPI. English Language Movie Premiers with the Chamber are ColaISTIL Beverages Group, KPMG-Ukraine Ukraine Limited, Ltd., ErnstPuma &Ukraine, Young LLC,and AESDe- exclusive events in Kyiv. They give Members the chance to loitteUkraine, & Touche. TUID DALGAKIRAN, JTI, Ericsson Ukraine, Coca- to watch world movie premieres in English, an experience that

The winners of the 11th Chamber Annual Chamber Paintball Outdoor Football Tournament were: Tournament 1st place — 2nd place 3rd place — JTICoca-Cola Beverages Ukraine Limited — ISTIL Group VIII Chamber Paintball Tournament VIII Chamber Paint- ball Tournament. TheIn August tournament the Chamber welcomed hosted allthe interested Chamber members along with their families. Ten teams had the chance to compete for the Chamber Paintball Cup and nice prizes from the sponsors. The tournament was organized in cooperation with the

157 ANNUALGepard REPORTPaintball /2012Club at a venue located just a few minutes’ www.chamber.ua Chamber Business Networking and Social Activities

no cinema in Kyiv can offer. These events are very popular, as While enjoying tasty American-style food, refreshing drinks, they offer guests both entertainment and business networking cotton candy, ice cream, and freshly squeezed juice, guests got opportunities. Members see a good movie, but also enjoy good - company, along with complimentary drinks and snacks. selves dive into the live performances of well-known singers Chamber English Language Movie Premiere: “Contra- andcozy bands, on the including green grass the groovy of the Tex-Mex stadium’s Company, field and the let Positive them band” Band, the promising young SolOmina, and of course the famous Chamber Animated English Language Movie Premiere: “The Lorax” As usual the event’s entertainment included but was not Chamber English Language Movie Premiere: “Dark GORCHITZA and the inimitable Aleksey Akkerman. Shadows” Posypayko. There were also interactive 3D games provided by Chamber English Language Movie Premiere: “Rock of limited to amusing contests led by the host of the picnic, Igor Ages” a huge construction kit big enough to build a small town with. Chamber English Language Movie Premiere: “The TheLG Ukraine Special Speedand an Test exciting activity Kids provided Zone with by Pumawater Ukraine zorbing gave and Dark Knight Rises” Chamber English Language Movie Premiere: “The but also to win a pair of Puma sneakers. Bourne Legacy” guests an opportunity not only to find out how fast they can run- Chamber English Language Movie Premiere: “Savages” The Charitable Grand Raffle was the essential part of the eve Chamber English Language Movie Night “Cloud Atlas” Chamber Annual Chamber English Language Movie Premiere “Hobbit” ning.American It found Inde- new owners for a number of valuable prizes that pendence Day Picnic 2012 American Independence Day Picnic Hot and sunny July 7 will be remembered by many Kyivans for being the day of one of the most spectacular outdoor family events on the Kyiv calendar, and one that has traditionally been organized by the American Chamber of Commerce in Ukraine

The number of people who got together to spend this Saturday with– the their Annual family Charitable and friends American at Spartak Independence Stadium speaks Day Picnic! for itself: the Chamber team hosted over 5,000 guests.

158 ANNUAL REPORT /2012 www.chamber.ua Chamber Business Networking and Social Activities

were kindly provided by the events’ sponsors. All the money goes to individuals for outstanding achievements in economics, gathered at the event will be directed to a social entrepreneur- science, culture, the military, or politics. The Order was solemnly ship project facilitated by the East Europe Foundation. At last, - after a thrilling performance of both national anthems – Ukrai- istration of President of Ukraine, in the presence of all guests. - proclaimedH.E. John byTefft, Iryna Ambassador Akimova, ExtraordinaryFirst Deputy Head and Plenipotentiaof the Admin- ry of the United States of America to Ukraine, also congratulated nian and American – the field was illuminated by the spectacu Chamber Members on the 20th anniversary of the organization’s Chamber’slar fireworks that 20th would Anniversary be the event’s culmination. Gala Celebration activities. He highlighted the Chamber’s valuable input into the development of a proper business environment of Ukraine. - A round of the best Business Networking in Ukraine fol- - lebritiesOver 1,000gathered COIs at and the business NSC Olimpiyskyy leaders from to celebrate among the the Cham 20th a buffet reception with delicious food and refreshing drinks. anniversaryber Membership, of the senior American government Chamber officials, of Commerce diplomats in Ukraine. ,and ce lowed the official part of the event, bringing guests together for

the aspirations of the internationally oriented business commu- This high profile event highlighted the history of the Chamber, Chamber has been part of this journey and how it will continue tonity, be and a strong the future voice prosperityfor the business of Ukraine. community It made in clearthe future. how the - - ed theIn opening importance the officialof the effective ceremony, and the constructive President workingof the Ameri rela- tionshipscan Chamber with of policy Commerce makers in throughout Ukraine, Jorge the Zukoski,Ukrainian highlight political leadership that the Chamber has managed to establish. The keynote speaker, Prime Minister of Ukraine Myko- la Azarov, congratulated the Chamber on its 20th anniversary and wished it success and prosperity in the future as a reliable partner to Ukraine’s government. - ment of the President of Ukraine’s Order regarding the Cham- Chamber’s 20th berMr. President’s Azarov’s nominationspeech was for followed a state bydecoration the official – the announce Order of Anniversary Gala Celebration

159 ANNUALMerit of REPORT the III Degree. /2012 This award was established in 1996 and www.chamber.ua CHAMBER GOURMET CLUB

160 ANNUAL REPORT /2012 www.chamber.ua Chamber Gourmet Club

he Chamber Gourmet Club is a network of the best restaurants in Kyiv. All are ready to welcome Cham- the tastes. Tber Members with special offers and discounts. the widest range of benefits and discounts and to satisfy all In the Restaurants category you’ll find all the partici- membership and to give Chamber Card-holders a variety of pants in the Chamber Gourmet Club, which unites the choicesThroughout and venues. 2012 theWe Gourmetare proud Club to announceworked to expandthat there its best restaurants in Kyiv. Holders of COI and Silver Cards - get 15% and 10% discounts, respectively, at Gourmet los, Just CAFE, Kuvshin, Da Vinci Fish Club, LEO, SkyArtCafe, Club restaurants! are now 96 Gourmet Club Members, as Mare Azzuro, Byb - www.gourmetclub.ua SEREBROcently joined restaurant and are readyand music to greet bar, Chamber Knyazhiy Members Grad, Tandyr, with CITRONELLE,high-level service Dark and Side special and otherdiscounts. establishments have re

ChamberIn 2009 Members the Chamber over 2010-2012. developed andStable launched visitor ratings a new Gourmet Club website, which grew more popular among sources that Chamber members refer to when they look for aindicate place to that eat out. the Gourmet Club website is one of the first With the help of unique advertising layouts specially developed by Chamber Member Tabasco Creative Agency, the - ticularly in Business Ukraine and What’s On. Gourmet Club has been promoted in the print media, par - taurantThe Gourmetnews, updates, Club pagesspecial on offers, social and networks discounts. (Facebook, We have Twitter, Linked In) have fostered even easier access to res- net users to conservative magazine and newspaper readers. managed to reach all kinds of audiences – from current Inter for its network in order to provide Chamber Members with The Gourmet Club is constantly seeking new restaurants 161 ANNUAL REPORT /2012 www.chamber.ua Chamber Gourmet Club

Ani Billiard Club “Sharpei™”

Antwerpen Buena Vista Latin House Kyiv, 72 Chervonoarmiis’ka Street +38 (044) 590-2565 Kyiv, 26 Moskovs’kyi Avenue +38 (044) 390-1712 ARISTOCRATE RESTAURANT Byblos Kyiv, 38 Pushkins’ka Street +38 (044) 234-1300 Kyiv, 8/14 Velyka Zhytomyrs’ka Street +38 (044) 279-5127 Arizona BBQ Cafe de Paris Kharkiv, 10/12 Artema Street +38 (057) 752-4004 Kyiv, 20 Artema Street +38 (044) 288-1888 China White Art-ClubKyiv, 25 Naberezhno-Khreshchatyts’ka 44 Street +38 (044) 425- Kyiv, 34B Andriyvskyy descent +38 (044) 221-2218 2438 Ciro’s Pomodoro Kharkov Atmosfera Kyiv, 24 Lesi Ukrainky Boulevard +38 (044) 594-2175 Kyiv, 44 Khreshchatyk Street +38 (044) 279-4137 Kyiv, 5-7/29 Tarasa Shevchenka Boulevard / Pushkinska CITRONELLE Kharkiv, 181 Moskovs’kyi Avenue +38 (057) 766-7001 Bacchus Comme Il Faut Street +38 (044) 244-1304 Kyiv, 23 Bohdana Khmel’nyts’koho Street +38 (044) 499-3936 Bar on 8 Cote d’Azur Kyiv, 16/2 Ivana Franka Street +38 (044) 234-6506 Kyiv, 2A Velyka Zhytomyrs’ka Street +38 (044) 219-1919 baz D*LUX Kyiv, 5 Ally Tarasovoi Street +38 (044) 581-1234 Kyiv, 15 Petra Sahaidachnogo Street + 38 (044) 581-2828 Bellini’s Bar Da Vinci Fish Club Kyiv, 22 Rybal’s’ka Steet +38 (044) 332-9965 Kyiv, 3 Mykhaila Hrushevs’koho Street +38 (044) 200-9009 Belmondo Dark Side Kyiv, 53 Bohdana Khmel’nyts’koho Street +38 (044) 581-7070 Kyiv, 12 Volodymyrs’ka Street +38 (044) 490-3434 b-hush Dejavu Kyiv, 17 Hoholivs’ka Street +38 (044) 362-5886 Kyiv, 14А Ihorivs’ka Street +38 (044) 428-8838 BIBLIOTECH smart cafe DOM Kyiv, 2A Velyka Zhytomyrs’ka Street +38 (044) 219-1919 Kyiv, 30 Bohdana Khmel’nyts’koho Street +38 (044) 235-9802

162 ANNUALKyiv, 120 REPORT Saksahans’kogo /2012 Street +38 (067) 502-5535 Kyiv, 7 Borysa Hrinchenka Street +38 (044) 353-4040 www.chamber.ua Chamber Gourmet Club

Doversol Khinkali

Dukhmiana Knyazhiy Grad Kyiv, 81 Chervonoarmiis’ka Street +38 (044) 531-1378 Kyiv, 4 Shota Rustaveli Street +38 (044) 234-0692 Korona-Club Pich Lesniki Village, Kyiv Region, 4th km of the New Kyiv, 2 Velyka Zhytomyrs’ka Street +38 (044) 278-0641 Obuhivs’ka Highway, Lesniki village, 4th km of the New Dumka Kozachok Hurzuf Obuhovskaya route +38 (044) 228-8889 Kyiv, 4 Rohnidyns’ka Street +38 (044) 289-0216 Food Time Kozachok Mila Kyiv, 20 Akademika Tupoleva Street +38 (044) 221-3900 Hurzuf, 69th km of Simferopol-Yalta road +38 (067) 329-8282 GORILLA Kyiv, 16/4 Verkhnii Val Street +38 (044) 500-7987 KozachokMila village, Kyiv region, 46 Komarov Street, 24th km of Kyiv- Grand Cru Champagne Bar ZhytomyrShchaslyve road “Kyiv-Boryspil” +38 (067) 329-8505 Road, 7 km from the CP of Kyiv Kyiv, 34A1 Naberezhno-Khreshchatyts’ka Lesi Ukrainky Boulevard +38 Street (044) 585-4120 Kozachok Sovky Grill Asia +38 (044) 592-2021 +38 (044) 322-8888 Kozachok Osokorky Jardin Kyiv, 118 Kirovohrads’ka Street +38 (044) 527-9348 Kyiv, 5 Ally Tarasovoi Street +38 (044) 581-1234 Koza-Dereza Kyiv, 11 Tsentralna Street +38 (044) 573-8505 Kyiv, 38/40 Tarasa Shevchenka Boulevard Just C.A.F.E. Krep de Shin +38Kyiv, (044) 39 Bohdana 362-1210 Khmel’nyts’koho Street Kyiv, 52A Artema Street +38 (044) 486-0040 Kuvshin Karavan Kyiv, 25 Hoholivs’ka Street +38 (044) 537-7070 +38 (044) 235 04 07 LEO Kazbek Kyiv, 96 Chervonoarmiis’ka Street +38 (044) 592-6363 Kyiv, 10 Klovs’kyi Descent +38 (044) 280-957 Lobby Lounge Bar Kyiv, 20 Parkova Road +38 (044) 270-7171 Kyiv, 30A Lesi Ukrainky Boulevard +38 (044) 285-4805 163 ANNUAL REPORT /2012 Kyiv, 2A Velyka Zhytomyrs’ka Street +38 (044) 219-1919 www.chamber.ua Chamber Gourmet Club

Lucky Pub Olimpiyskiy Sport&Beer

Mai Tai Lounge Olivera Kyiv, 13 Chervonoarmiis’ka Street +38 (044) 499-1313 Kyiv, 55 Chervonoarmiis’ka Street +38 (067) 344-3333 maLLina cafe O’Panas Kyiv, 66 Chervonoarmiis’ka Street +38 (044) 583-5553 Kyiv, 2A Velyka Zhytomyrs’ka Street +38 (044) 219-1919 Marakuya Paris-Dakar Kyiv, 27B Petra Sagaydachnogo Street +38 (044) 425-4508 Kyiv, 10 Tereshchenkivs’ka Street +38 (044) 585-0523 Mare Azzuro Petrovsky Brovar Kyiv, 29 Marshala Tymoshenka Street +38 (044) 536-1085 Kyiv, 46 Dmytrivs’ka Street +38 (044) 490-8156 Matreshka Restaurant of Boutique-Hotel Riviera on Podol Kyiv, 27rd1/10 kmBankova of new Street Obukhivska +38 (044) Highway 253-0765 Brovary, 131 Osipova Street +38 (044) 599-4500 Sam’s Steak House Mocco Kyiv, 15 Petra Sahaidachnogo Street + 38 (044) 581-2828 +38 (067) 247-0665 Scorini Wonderland Myslyvets Grill-restaurant Kyiv, 37 Zhylyans’ka Street +38 (044) 287-2000 Kyiv, 15 Khreshchatyk Street +38 (044) 230-9230 SEREBRO restaurant and music bar Nirvana Kyiv, 31A Shota Rustaveli Street +38 (044) 289-7812 Kyiv, 147/5 Saksahans’koho Street +38 (044) 236-3735 Shangri-La Nobu Kyiv, 3 Mechnykova Street +38 (096) 303-0000 Kyiv, 28V Lesi Ukrainky Boulevard +38 (044) 285-5215 Skatert-Samobranka Non-Stop Kyiv, 41 Petra Sahaidachnoho Street +38 (044) 462-5321 Kyiv, 12 Shota Rustaveli Street +38 (044) 246-7734 SkyArtCafe O’BRIEN’S Kyiv, 26A Bohatyrs’ka Street +38 (044) 592-0020 Kyiv, 6 Peremogy Avenue +38 (044) 236-0501 Smaсotella O’CONNOR’S Kyiv, 1-3 Chervonoarmiis’ka Street +38 (044) 561-7841 Kyiv, 17A Mykhailivs’ka Street +38 (044) 279-1584 Kyiv, 4A Heroiv Stalinhradu Avenue +38 (044) 597-1405 Kyiv, 15/8 Khoryva Street +38 (044) 425-7788 164 ANNUAL REPORT /2012 www.chamber.ua Chamber Gourmet Club

Sorry Babushka TERRACOTTA Kyiv, 5-7/29 Tarasa Shevchenka Boulevard / Pushkinska Spotykach Kyiv, 18/24 Dmytrivs’ka Street +38 (044) 486-0300 The Atrium Lounge & Pâtisserie Street +38 (044) 244-1212 Stare Zaporizhzhya Kyiv, 1 Naberezhno-Khreshchatyts’ka Street Kyiv, 16 Volodymyrs’ka Street +38 (044) 586-4095 Surprise The Strand Grill Kyiv, 27 Petra Sahaidachnoho Street +38 (044) 425-5161 +38Kyiv, (044) 1 Naberezhno-Khreshchatyts’ka 322-8888 Street Tampopo Kyiv, 3 Pyrohova Street +38 (044) 235-7234 Tike +38 (044) 322-8888 Tandyr Kyiv, 55 Saksahans’koho Street +38 (044) 289-2999 Tolstoy restaurant-club Kyiv, 31 Petra Sahaidachnoho Street +38 (044) 417-4062

TARANTINOKozyn, Kyiv Region, 11D Kyivs’ka street (29th km of Très FRANCAIS Staroobuhivska Highway) +38 (044) 520-8770 Kyiv, 19 Chervonoarmiis’ka Street +38 (044) 200-3838 Tarelka fun-restaurant Trypillya Kyiv, 35 Petra Sahaidachnoho Street +38 (044) 463-7390 PidhirtsiKyiv, 3 Kost’ol’na Village, KyivStreet Region, +38 (044) 27th 279-7771km of the New Obuhivs’ka Tavern “Love and Hunger” Kyiv,Romankiv 62/20 Village, Dmytrivs’ka Kyiv Region, Street +3828th (044) km of 220-2060 the New Uruk Highway +38 (044) 585-5566

Tavern “Syto-Pyano” Vareniсhnaya №1 Obuhivs’ka Highway +38 (044) 332-7500 Kyiv, 11 Yaroslaviv Val Street +38 (044) 235-1596 Teatro VilleR Kyiv, 19A Dniprovs’ka Embankment +38 (044) 585-6440 Kyiv, 28 Esplanadna Street +38 (044) 287-1539 TERRACE Vintage Cocktail Bar Kyiv, 53 Bohdana Khmel’nyts’koho Street +38 (044) 581-7070 Kyiv, 4A1 Naberezhno-Khreshchatyts’ka Heroiv Stalinhradu Avenue +38 Street (044) 597-1400

Kyiv, 60A Vozdvyzhens’ka Street +38 (044) 531-9933 +38 (044) 322-8888 165 ANNUAL REPORT /2012 www.chamber.ua MEMBERSHIP DISCOUNT PROGRAMS

166 ANNUAL REPORT /2012 www.chamber.ua Membership Discount Programs

he Chamber Discount Program is one of the most Chamber Member companies get access to a highly valuable target market and utilize a reputable and well-recog- TChamber promotes the use of Chamber Member- nized promotional vehicle. The Chamber Discount Program ship Cardssought among after employees, benefits so for that Chamber they can Members. get discounts The not only allows participating Members to boost their com- in the following areas:

Accommodation and hotels thepanies’ many profiles discounts and onrevenues, offer. it also gives representatives Advertising, media, and printing of everyThe number Chamber of Memberdiscounts Company is constantly the benefit growing. of access You can to • Airlines and travel services - • Business services bers can also subscribe for RSS and get the latest updated • Car leasing and sales directlyfind the tolatest their updates mailboxes. at www.chamber.ua/discount. Mem • Consulting and outsourcing • Delivery and logistics • Education and training Maxi Loyalty Program • Furniture and equipment • Healthcare and beauty services Your Chamber Membership Card has been enhanced to • • multi-brand loyalty program in Ukraine, have collaborated • LegInsuralance services toprovide let you an earn additional rewards value. while The you Chamber shop. and Maxi, the first • RITeal and estate software Using your card you can get discounts and collect bonus- • Restaurants es whenever you shop in the Maxi retail network, which in- • Retail establishments cludes brands from the entire lifestyle spectrum. • You can redeem collected bonuses to purchase goods at • any shop in the Maxi network. The network is rapidly growing and will soon have several thousand locations at which you can use your Chamber Membership Card. Just look for the Maxi butterfly at the store entrance and keep an eye on the Maxi website, www.maxicard.ua, to learn where you can save and earn rewards.

167 ANNUAL REPORT /2012 www.chamber.ua NEW MEMBERS IN 2012

168 ANNUAL REPORT /2012 www.chamber.ua New Members in 2012

CMS Reich-Rohrwig Hainz LLC AgriSol Ltd Adizes Institute Agro Soul D&Y, LTD Cub Energy Inc. Deutsche Bank DBU PJSC Air Liquide Ukraine E2Market AGROTRADE Group Albatros-Travel EMC Ukraine Alekseev, Boyarchukov and Partners All Star Realty ENI UKRAINE LLC ANCOR Personnel Ukraine LLC Focal Line Solar LLC First Dnieper Investment Company

Argus Limited Apotex Inc. Representative Office in Ukraine GAP Ukraine LLC Gavilon Ukraine, LLC ASTRA-KYIV LLC GE Ukraine Awara Group LLC Gefco Ukraine Axis Group Ltd. Genom Biotech Bathyscaphe LLC BACARDI-MARTINI UKRAINE Global Restaurant Group - Ukraine LLC BEKO Ukraine LLC Happy Farm LLC Google LLC Brenntag Ukraine LLC Healthyway iBPM LLC Carlo Pazolini Capital Times Investment Company Centre For Transport Strategies Ltd. IMS Global Limited Information Systems Security Partners (ISSP)

169 ANNUALCITA Travel REPORT Company /2012 Innovecs www.chamber.ua New Members in 2012

International Business Centre (MDC LLC) SCIENTIFIC-TECHNICAL CENTER of SUBSURFACE Kornatskiys Private Farm Ltd. Stanfy Iskander Energy Corporation INVESTIGATION Kuehne + Nagel Ukraine Limelight Networks Ukraine Sumitomo Corporation Central Eurasia LLC, Kyiv Repre- LNK LLC SvitSoft LTD sentative Office Swissport Ukraine LLC Molson Coors Ukraine MEGABANK, PJSC NEO FORTE Nycomed: a Takeda Company Trade House International Trade Service LTD Trelad International Real Estate Agency

Otten Consulting LLC USAID - Public Private Partnership Development Program Oriflame Cosmetics Ukraine, Subsidiary Company (P3DP) Palomar Systems Vikoil Ltd USAID FAIR Justice Project Peugeot Citroen Ukraine SARL Viterra Ukraine LLC Pleon Talan Volvo Ukraine LLC PLS Logistics Services Popko Brothers & Partners, Law Firm X.COMMERCE DEVELOPMENT CENTER LLC WEATHERFORD UKRAINE Porsche Leasing Ukraine LLC Propan-Trade Quinn Properties Ukraine Radisson Blu Hotel, Kyiv Podil Ramada Encore Kiev Scan-Shipping LLC

170 ANNUAL REPORT /2012 www.chamber.ua