The Social Economic Situation in Kyiv January October

OCTOBERNOVEMBER 583 2014

THE SOCIALECONOMIC SITUATION IN KYIV JANUARYOCTOBER 2014

RADOSVIT  AN UKRAINIAN EXPERT IN TWINE AND ROPE INDUSTRY

UKRAINE IS UNDERESTIMATED BY INVESTORS

CONTENTS CONTENTS

THE SOCIALECONOMIC SITUATION IN KYIV 2 Dear readers! UKRAINE IS UNDERESTIMATED BY INVESTORS 6 You are holding the latest issue of the magazine of the Kyiv Chamber of UKRAINE RECEIVES €500 MILLION Commerce and Industry magazine OF EU MACROFINANCIAL ASSISTANCE 8 «Business Panorama», which is pub- lished by us in English. First of all, pu- LLC BIOTECH GROUP 9 blishing the magazine for our English readers is performed at the request of those members of our institution that LET’S TAKE CARE are keen to be known not only in Uk- OF THE HARVEST TOGETHER! 10 raine, but abroad as well.

It is worth mentioning that in the INNOVATIVE APPROACHES light of signing the association agreement between Ukraine and the EU the necessity TO IMPROVE OPERATING SAFETY of publishing this magazine in English becomes even more significant. OF HYDRO POWER PLANTS IN UKRAINE 12 Today Ukraine is facing difficult times, indeed. I dare say that hardly any country has gone such a thorny and difficult way to become a European country. Unfortunately SAVE YOUR MONEY! our work is not done yet. THE EUROPEAN GROUP OF COMPANIES In the meantime Ukrainian businessmen more often realize that the existing business COMPETENCE CENTRE ECM KNOWS dealing system and the regulation and quality systems, imposed upon us from the THE RIGHT FORMULA FOR EXPENSES times of the former Soviet Union, don’t work anymore. We need new approaches, REDUCTION IN BUSINESS 14 new directions, new standards. The European Union can give it to us, all we need is to ask. But we know that it takes two to tango. That’s why we need your support, too. RADOSVIT  AN UKRAINIAN In the name of those European businessmen that are interested in Ukraine we would EXPERT IN TWINE like to find, first of all, reliable partners, and, maybe, even good friends. We would AND ROPE INDUSTRY 16 like to learn from you and offer you our experience, our products, our exploratory works and find new fields and forms of cooperation. We sincerely want Ukraine to become a European country not only geographically, but also de facto. We are ready READYFORUSE to change, to learn and to overcome the obstacles on this tough path. And we count RADIOPHARMACEUTICALS 18 on your help in this process.

CREATIVNESS! COMFORT! QUALITY! 20 Respectfully yours, President of the Kyiv Chamber of Commerce and Industry «BUSINESS PANORAMA» № 5 (83), 2014 The magazine is distributed among the Chamber members, busi- Mykola Zasul’skii ness entitles, during all events held in the Kyiv CCI, it is sent to the region Chambers of Ukraine, CIS, and to combined international Chambers as well as to Embassies, Consular Department of Foreign countries and state city and oblast administrations in Ukraine. The Editorial Board: EDITORINCHIEF  S. CHERNIK DEPUTY EDITORINCHIEF  M. BUSYGINA DESIGN AND PAGE PLANNING  B. VOLYNETS

Editoral Oﬃce adress: 55 Bohdan Khmelnytskyi str., Kyiv-54, City Post Service, 01601, Ukraine. Phone (044) 482-0433, Fax (044) 482-3962 e-mail: [email protected], www.kiev-chamber.org.ua

october-november • 2014 1 CAPITAL NOTIFICATION OF THE CENTRAL STATISTIC ADMINISTRATION IN KYIV

THE SOCIALECONOMIC SITUATION IN KYIV JANUARYOCTOBER 2014

NDUSTRY dustrial and professional overcoats, jackets In 2014 enterprises involved in wood In January-October 2014 the indus- and blazers decreased from 22 thousand to products, paper and printing industry trial production index reached 85.4 per 16.2 thousand items; other working clothes have shown a decrease in producing Icent (in reference to the index in Janu- for men – from 52.2 thousand to 22.5 thou- wooden frames for pictures and photos, ary-October 2013). Reduction of the total sand items; working clothes for women non-corrugated paper and carton boxes, output took place due to machine build- – from 43.2 thousand to 39.1 thousand carbon paper. An increase can be seen in ing enterprises (index: 70.5 per cent); food, items; women suits, outfits, jackets, blazers, producing wooden fiberboards, decora- beverages and tobacco industry (index: dresses, knitted skirts – from 33.1 thousand tive veneer, wooden doors and windows, 83.3 per cent); manufacture of rubber and to 28.5 thousand items. wooden crockery and cutlery, corrugat- plastic products and ready-to-use hardware (87.0 per cent); electric, gas, vapor and con- ditioned air supply (89.8 per cent); wood products, paper and printing industry (90.3 per cent); manufacture of chemical products and substances (96.6 per cent); textile industry clothes, leather and other fabric manufacture (97.6 per cent). A growth can be seen in the total output of pharmaceutical products (іndex: 100.5 per cent). A manufacture decline occurred in many kinds of food and beverage products, including sausage products, bread and flour products, cookies and pastries, flour, choc- olate sweets, cakes, gingerbread and others, natural mineral carbonated and carbonate- free water. Comparing the last year’s results in the textile industry, clothes, leather and other fabric manufacture, the production of men in-

2 october-november • 2014 CAPITAL ed paper and carton boxes, wooden con- tainers, etc. A recession of 3.6 per cent can be seen in newspapers issued less than 4 times a week; 31.0 per cent – in magazines and periodi- cals; 6.3 per cent – in books, brochures, leaf- lets and similar goods. The manufacture of chemical products and substances decreased due to yielding less aqua paints and varnishes of polymer sub- stance; surface-active materials (except soap); detergents and cleaning substances; cosmet- ics for skin care; shaving products, etc. Pharmaceutical enterprises manufactured 121t of hormonal drugs (a 37.4 per cent increase); 173t of penicillin and other anti- biotics (a 15.2 per cent decrease); 5161t of alkaloid drugs (a 1.6 per cent increase). The manufacture of rubber and plastic prod- According to the kind of building products, services to the value of 15.6 billion gryvnias, ucts and other non-metallic mineral goods mostly buildings were arranged (6452.8 mil- including those to the population – 7.5 bil- decreased due to less plastic plates, sheets, lion gryvnias or 74.9 per cent from the total lion gryvnias that make up 47.7 per cent of tapes, foil, plain ribbons (a 12.6 per cent amount). Among them 3543.3 million gryv- the total number. decrease); door and window units (a 21.6 nias or 41.1 per cent for residential buildings Modern modes of communication are still per cent decrease); tableware and kitchen and 2909.5 million gryvnias or 33.8 per cent developing in the city, such as computer and appliances (a 19.7 per cent decrease); poly- for non-residential buildings. In the con- phone communication and cable television. ethylene packages and bags (a 12.4 per cent struction of engineering buildings 2163.0 Same as earlier, the most common-used decrease). There is also a decrease in issuing million gryvnias or 25.1 per cent from the services are mobile communication (59.9 prefabricated units for cement and concrete total amount of money was spent. per cent), computer communication (11.8 constructions of about 25.7 cubic meter per cent) and domestic long distance serv- (or 7.4 per cent); dry pack mortars of about TRANSPORT AND CONNECTION ices (7.0 per cent). 31.3 thousand tons (or 7.6 per cent), multi- The Southwestern railways have delivered layer insulated glass products of about 16.7 31.6 million tons of cargo (102.2 per cent SCIENCE AND RESEARCH thousand square meter (or 18.7 per cent). comparing to the last year). Shipping build- In 2014 scientific and research work had Machine building enterprises produced ing materials increased at 0.9 per cent, other been performed by 299 organizations with 946199 electricity meters (7.6 per cent less stock – 4.8 per cent, ferrous steel scrap – 5.8 50.6 thousand employees. The number of than last year); 20371 accounting machines per cent, timber cargo – 9.6 per cent, chem- direct science and research work perform- and cash registers (76.6 per cent less than ical and mineral fertilizers – 16.4 per cent, ers makes up 40.7 thousand people, among last year); 349 automatic and semi-auto- corn and grinding products – 22.1 per cent, them 28.2 thousand researchers, 4.0 thou- matic engines and devices for electric metal coal – three times. 109.9 million passengers, sand engineers and 8.5 thousand of support welding (64.6 per cent more than last year). including those of the urban train(96.2 per staff. Moreover, 2.8 thousand people have A reduction can be seen in the production of tools cent comparing to 2013), were transported. the Doctor of Science degree, 8.4 thousand for monitoring expenses, levels, pressure and oth- 8650.6 thousand tons of commercial cargo – the Candidate of Science degree. er variable characteristics of liquids and gases – up were delivered by trucks in all directions The total amount of scientific and research to 32.9 per cent; of loaded printed boards – up (the same as last year). Buses in all direc- work conducted by the institutions within to 25.7 per cent; of electrical wiring equipment tions transported 332886.9 thousand pas- the city in 2014 comes to 3366.8 million aimed at 1000 V – up to 11.1per cent. sengers (99.4 per cent comparing to 2013). gryvnias. 33.8 per cent of this money was In 2014 728.9 million passengers were trans- spent on basic studies, 28.8 per cent – on sci- THE BUILDING SECTOR ported by the urban electric transport (the same ence and research projects, 22.4 per cent – In 2014 Kyiv city enterprises carried out as last year), incl. fee-paying – 421.8 million pas- on applied research, and 15 per cent – on engineering projects for the value of 8615.8 sengers (98.5 per cent comparing to 2013). ski-tech services. million gryvnias. The building products in- During 9 months consumers were provided The domestic expenses of these institutions dex amounts to 81.4 per cent. with telecommunication, postal and express for conducting scientific and research activ-

october-november • 2014 3 CAPITAL ity made up 3154.2 million gryvnias, among them 1699.9 million gryvnias at the public crib. Throughout the domestic expenses the straight-line expenses amount to 3066.2 million gryvnias (incl. 1706.5 million gryvnias on work payment), and the capital investment amounts to 88 million gryvnias. In 2014 the average salary of scientific and research workers in Kyiv figured up to 3937.4 gryvnias.

FOREIGN ECONOMY The amount of exporting goods and services in Kyiv in January-September 2014 makes up 10932.9 million dollars (96.5 per cent comparing to 2013), the import capacity – 16894.6 million dollars (78.1 per cent comparing to 2013). The negative balance of the foreign trade amounted to 5961.7 million dollars. (The data of imported goods amount are given without considering import deliveries of natural gas). products and related branches of industry, lion dollars. So export decreased at 15.1 per In 2014 the foreign trade turnover in Kyiv machinery, equipment and mechanisms, cent, import – at 16.2 per cent. The positive calculated 23518.2 million dollars and de- electric facilities, mineral products, fats and foreign trade balance in services amounted creased at 15.6 per cent. The export is esti- oils of vegetable and animal origin, ready- to 616.7 million dollars. mated up to 8469.9 million dollars, the im- made meals, basic metals and their articles, In the structure of foreign trade transport- port – at 15048.3 million dollars. So, export ground means of transportation, flying ing services, telecommunication services, increased at 0.5 per cent, import decreased machines, watercraft, polymeric materials, computer and informational services, busi- to 22.6 per cent. The negative foreign trade plastic products and their articles. ness services, traveling services, royalty balance amounted to 6578.4 million dollars. In 2014 the foreign trade export rate in and other services related to using intel- The main commodity composition of trade services in Kyiv amounted to 2463.0 million lectual property, financial services, natural in Kyiv included plant products, chemical dollars, the import rate – up to 1846.3 mil- resources processing services and building services were predominant. As of October 1, 2014, with the beginning of economic investment into the city, 24153.4 million dollars were received in the form of direct foreign investment, including 17621.5 million dollars from the EU (73.0 per cent from the total amount of capital stock) and 6531.9 million dollars from other countries (270 per cent). Direct foreign investment per one person from the population calculated 8578.4 dollars. According to the type of economic activity the major part (41.8 per cent) of direct investments were assigned to developing enterprises and organizations conducting financial and insurance activities. Big sums of direct investments are also put in whole- sale and retail business; automotive and motor cycle maintenance (16.3 per cent);

4 october-november • 2014 CAPITAL

At the same time prices at vegetables have decreased to 27.7 per cent. Prices at alcoholic beverages and tobacco products escalated to 23.6 per cent, namely tobacco products (25.5 per cent), alcoholic beverages (21.6 per cent). Observing price changes at leisure and culture services has shown an escalation of about 25.3 per cent. A price escalation in transporting services to 33.4 per cent is related to rising costs at gas and oil to 54.8 per cent and rising costs at purchasing new vehicles to 47.2 per cent. A growth in prices at accommodation, water, electricity, gas and other types of fuel to 24.9 per cent is determined by raising the costs at drainages almost at 2.6 times, water supply – almost at 2.2 times, natural gas – at 62.8 per cent, electricity – at 11.3 per cent. Prices for household articles, household appliances and upkeeping of accommodation are at 18.3 per cent higher. professional, scientific and technical activi- and drinks calculates 67475.7 million gryvnias, Healthcare services are at 22.5 per cent ties (11.1 per cent); real estate procedures which is 7.2 per cent lower than last year. higher mostly due to more expensive phar- (9.0 per cent); information and telecom- maceuticals, medical products and medical munication (7.4 per cent); industry (4.8 per PRICES AND RATES equipment (43.1 per cent). cent), building (4.1 per cent). In 2014 the flow of prices on the consumer As of October 1, 2104 economy in Kyiv has market in the capital was defined by a 19.0 EARNINGS OF THE POPULATION received investments from 118 countries all per cent price escalation (December 2013- The average number of full-time employees over the world. The most important inves- October 2014). in enterprises, institutions and organiza- tors are: the Cyprus (7542.9 million dollars A price escalation for food products and tions (with the quantity of employees 10 or 31.2 per cent), the Netherlands (2929.4 non-alcoholic beverages was registered in: and more) has amounted to 1181.1 thou- million dollars or 12.1 per cent), the Russian fruit (49.0 per cent), fish and seafood (34.4 sand people in September. Their average Federation (2589.6 million dollars or 10.7 per cent), sugar (31.2 per cent), bread (23.8 salary was 5362 gryvnias, which is 4.4 times per cent), Austria (2147.7 million dollars or per cent), non-alcoholic beverages (21.0 per higher than the minimum wage and the 8.9 per cent), Great Britain (1251.4 million cent), macaroni products (19.8 per cent), subsistence minimum for one person (1218 dollars or 5.2 per cent), Italy (934.1 million milk (9.0 per cent). gryvnias). In comparison with August sala- dollars or 3.9 per cent), the Virgin Islands ries have risen at 0.7 per cent, in compari- (852.6 million dollars or 3.5 per cent). son with September – at 8.0 per cent. As of October 1, 2014 the amount of direct investment (capital stock) of the city’s en- LABOR MARKET terprises into the foreign countries’economy In 2014 32.9 thousand people were regis- calculated 717.9 million dollars. tered in the state employment agency as un- employed (7.7 thousand people or 30.6 per DOMESTIC TRADE cent more than last year). The circulation of retail business amounts to 100360.7 million gryvnias, which is 3.8 DEMOGRAPHIC SITUATION per cent higher than in 2013. As of October 1, 2014 the population in The circulation of catering business de- Kyiv was estimated up to 2875.6 thousand creased at 17.4 per cent and calculated people. An increase at 3.2 per cent (6870 3324.8 million gryvnias. people) can be seen. The retail sales volume of enterprises that con- duct retail business and provision with meals The Central Statistic Administration in Kyiv

october-november • 2014 5 INTERNATIONAL COOPERATION UKRAINE IS UNDERESTIMATED BY INVESTORS

s there a chance? Among other European countries Ukraine is on of the biggest and richest Iin natural resources. In 23 years Ukraine still couldn’t become an economically successful country. New governments come to power, new oli- garchic families arise, yet the life of Ukrain- ians is as difficult as ever. Why is this happening? Do we know our potential? Do we really understand our problems and are we keen to solve them? Solving any problem starts with recogniz- ing it. Opportunities arise when you are aware of your potential. What’s wrong? An outside view. UKRAINE TAKES: 1st place in the world in gas consumption per one head of the population. 4th place in Europe in violating the human Factors that influence the investment cli- level of black economy in Ukraine reaches rights (after Russia, Turkey and Romania). mate within Ukraine (according to the re- 50 per cent. 39th place in the world in the GDP level. sults of a poll conducted by EBA). • High value of resources. 57th place in the world in the list of coun- 1. The political factor has been noted by • Negative forexast of Ukrainian credit rat- tries’ competitiveness. 26 per cent of people asked. ing ( according to the rating agency Stand- 43rd place in Europe in the Index of Eco- 2. Drawbacks of the fiscal policy – by 25 per ard & Poor’s , December 2012). nomic Freedom. cent of people asked. • Unequal conditions of doing business. 69th place in the world in developing hu- 3. A high level of corruption – by 15 per cent man potential. of people asked. Ukraine’s potential. Facts. 73rd place in the world in the amenities of 4. Escalation of pressure form governmen- Ukraine’s status in Europe and the world: living. tal structures and overregulation of markets The 1st place in Europe in territory (among 82nd place among 142 countries in the list (18 per cent). countries whose whole territory is on the of competitive countries. 5. Problems with customs registration (13 per European continent, 603 628 square kilom- 83rd place in the world in the list of tour- cent). eters). ism competitiveness of all the countries. 6. Defective legal environment (11 per cent). 5th place in Europe and 29th place in the 96th out of 184 places in the number of 7. Problems with repaying VAT (7 per cent). world in population. taxes (28 fiscal charges). 8. Non-transparency of the judicial system Ukraine is one of the richest countries in 96th out of 185 places in the profitableness (5 per cent). the world, as to natural resources it takes: of doing business. 9. Difficulties with receiving credits (5 per cent). 1st place in Europe in known extractable 173rd out of 184 places in the simplicity of 10. Absence of effective communication lines resources of atomic ore. paying taxes. with the government and its bodies. 2nd place in Europe and 10th place in the 144th out of 176 places in preventing cor- Evaluation of international specialists: world in the resources of titanic ore. ruption (according to Transparency Inter- • Low energy performance of the economy 2nd place in the world in the known re- national, 2013). (one of the lowest in the world); sources of manganese ore (2.3 billion tons What’s wrong? An inside view. • According to international specialists, the or 12 per cent from all the resources).

6 october-november • 2014 INTERNATIONAL COOPERATION

2nd place in the world in the resources of cles modeling markets and their commer- According to specialists, Ukraine needs 250 iron ore (30 billion tons). cial usage for disposable loads insertion. billion US dollars in order to modernize its 2nd place in Europe in the resources of 4th place in the world in exporting clay. economy and infrastructure. mercury ore. 4th place in the world in exporting titanium. • Agriculture – at least 75 billion US dollars. 3rd place in Europe (13th place in the 8th place in the world in exporting ores • Communal infrastructure – at least 80 bil- world) in the resources of shale gas (22 tril- and concentrates. lion US dollars. lion cubic meters). 9th place in the world in exporting MIS • Modernizing railways – at least 25 billion 4th place in the world in the total value of products. US dollars. natural resources. 10th place in the world in the capacity of • Extracting industry – at least 200 billion 7th place in the world in the resources of steel production (32.4 million tons). US dollars. coal (33.9 billion tons). Ukraine is a well-educated country: • Metallurgy – at least 15 billion US dollars. Ukraine is an agricultural country: According to Human Development Report, • Traffic infrastructure – at least 5 billion US 1st place in Europe in the space of croplands. Ukraine is a country with a great number dollars. 3rd place in the world in the space of black of educated people. There are 15 thousand • Other economy sectors – at least 20 billion soil (25 per cent of the world’s black soil). Doctors of Economics and more than 80 US dollars. 1st place in the world in exporting sun- thousand Doctors of Science. What can we do?! flower and sunflower oil. Ukraine takes the 4th place in the world Being aware of all the problems and our po- 2nd place in the world in producing and in the number of people with a university tential, we must focus upon the strategy of 4th place in exporting barley. degree, moreover the educational level is its realization. 3rd place in the world in producing and higher than the average European one. Without outside investment, technologies 4th place in exporting maize. 9th place in the world in the number of and expertise Ukraine cannot make this 4th place in the world in the capacity of foreign students. step forward. In order to get the attention cultivated potato. 9th place in Europe in the number of In- of investors we have to create perfect condi- 5th place in the world in producing rye. ternet users. tions for them and our citizens as well by 5th place in the world in beekeeping (75 15th place in the world in the number of using our advantages. And we have to man- thousand tons). national networks in wikipedia. age this better than our rival countries. 8th place in the world in exporting wheat. The need of investors in Ukraine: We have to create our own plan, «The Future of 9th place in the world in producing chick- Ukraine needs investment in order to be a Ukraine», therewith defining the place of our en eggs. competitive and dynamically developing coun- country in the world, removing our weaknesses 16th place in the world in exporting cheese. try. Calculations show that Ukraine has to en- and implementing our competitive advantages. Ukraine can provide 600 million people gage at least 280 billion US dollars of outside with food supply. and domestic investments for a strong growth Anatolii Amelin Ukraine is an industrial country: of its economy and for reaching the TOP-20 list National Committee on Securities and Stock Market 1st place in Europe in producing ammonia. of countries according to its GDP in 7 years. https://inventure.com.ua 2nd place in Europe and 4th place in the world in the capacity of the gas pipeline network (the outgoing throughput of the gas pipeline network with the EU countries is 142.5 billion cubic meters of gas). 3rd place in Europe and 8th place in the world in the registered capacity of nuclear power plants. 3rd place in Europe and 11th place in the world in the length of railways (21.7 thousand kilometers). 3rd place in the world (after the USA and France) in producing localizers and loca- tion systems). 3rd place in the world in exporting cast iron. 4th place in the world in exporting nuclear power plants turbomachinery. 4th place in the world in the launch vehi-

october-november • 2014 7 EUROPEAN COOPERATION

UKRAINE RECEIVES €500 MILLION OF EU MACROFINANCIAL ASSISTANCE

he European Commission, on be- half of the EU, today disbursed €500 million to Ukraine in the second Tand final loan tranche of the EU’s €1 billion Macro-Financial Assistance (MFA II) programme for the country approved earlier this year. This adds to the €860 million provided so far under the two ongoing MFA programmes, leaving €250 million still available under the earlier MFA programme (MFA I), a press release said. The funding for today’s disbursement was raised by the European Commission on financial markets on 26 November. The objective of the MFA programmes is to support Ukraine financially while en- supporting legislative harmonisation with taxation, the energy sector and the finan- couraging important structural reforms the EU. Specifically, the MFA supports re- cial sector. aimed at improving governance, deliv- forms in the areas of public finance man- «Europe is delivering on its commitment ering sustainable economic growth and agement and anti-corruption, trade and of solidarity to Ukraine», Commissioner for Economic and Financial Affairs Pierre Moscovici said, adding: «We are providing essential financial support at a time of extraordinary economic and social challenges for the Ukrainian people. In turn, it is vital the country maintain the momentum of reform so as to create the conditions for sustainable prosperity for all Ukrainians». The current EU MFA loan to Ukraine amounts to €1.61 billion. Prior to today’s disbursement, three payments under this instrument were made earlier this year: €100 million on 20 May, €500 million on 17 June and €260 million on 12 November. The final disbursement of €250 million is expected to be made by spring 2015, provided that Ukraine shows sufficient reform progress. The assistance is part of a wider package of support for Ukraine announced by the European Commission on 5 March and endorsed by EU leaders at the Euro- pean Council on 6 March 2014.

http://www.enpi-info.eu

8 october-november • 2014 BUSINESS PARTNERSHIP

LLC “BIOTECH GROUP”

• Has a prolonged effect – the positive im- «LAKTIN-K PLUS» produces a positive effect: pact is long-lasting. – to animals’ health; • Improves the veterinary and sanitary – to the quality of nutrition products, and, safety of industrial facilities. correspondingly, to people’s health; – to the consequences of breeding animals Guarantees the animals: from the point of view of natural envi- LC «Biotech Group», assisted by • Creation of a intestine microbial flora; ronment. Ukrainian leading research and • Producing digestive enzymes; development institutions, works • Preventing gastrointestinal irritation; Lon biologic drugs for agricultural • Growth and development promotion; needs. The company’s main fields of con- • Increase in weight; cern are: stockbreeding drugs (preventing As for the fowl: and treating fowl, cattle and other farm ani- • Increases the livewaight gain of fowl up mals illnesses; growth and quality indicator to 20 per cent; promotion) and plant protection products • Heightens the egg-laying capacity up to (protection of crops from illnesses, growth 15 per cent. promotion). All the products are eco-friendly and allowed in organic households. Composition of the food supplement. Bacteria included into the food supplement «LAKTIN-K PLUS» bear unique bioactivity. The food supplement «LAKTIN-K PLUS» is presented in the form of a probiotic based Three bacteria strains are occur in the product: on specially prepared lactic-acid bacteria – Streptococcus faecium; strains targeted at creating and stabilizing – Lactobacillus salivarius; a healthy digestive tract microbial flora of – Lactobacillus fermentum. fowl, pork and other farm animals. The combination of these strains allows the probiotic to survive in the digestive tract, Effects of the food supplement to prevent the colonization of pathogenic • Heightens the offspring’s safety and vitality germs within the intestine and to produce and assures the homogeneity of the flock. beneficial biologically active substances. • Improves the feed efficiency. The product is eco-friendly, does not contain • Significantly lowers the urge to antibiot- GMO or other chemical constituents, has ics up to complete rejection, along with no side effects, is practically harmless even side effects of antibiotic therapy. in high concentration. Therefore it can be • Produces an immunomodulatory, anti- used in organic households. Easy to take – 6-V Pidvysotskogo str., Kyiv, 01103, Ukraine toxic, antiallergic, antiradiation effect. it can be digested by animals with water, Tel.: +38 044 496-5205 • Produces a stress-relieving effect (in case food or overspray. Can be used right from Fax: +38 044 496-5204 of technological, transport stress, etc.). the birth. e-mail: [email protected]

october-november • 2014 9 BUSINESS PARTNERSHIP

LET’S TAKE CARE OF THE HARVEST TOGETHER!

CEO OF THE LLC UKRAGROCOM, V. M. PLICHKO

he agricultural sector is a genuine Maisadour. In addition plant protecting driving force of Ukraine’s current eco- products of its own brand are sold there. nomic development, and the compa- The prospect of cooperation withUkragro- Tny Ukragrocom appears to be one of com for farming businesses is shown in the the most powerful players on the agricultural definite growth of harvest. Professional ag- market. It has 150 employees, 9 representa- ricultural consultants choose the most suit- tive offices in Ukraine, 12 regional storages able type of fertilizers and pesticides which and its own mineral fertilizers prepackaging guarantee more profit from the harvest. facility. The customer base accounts over 3 Every year the company increases sales up thousand agricultural enterprises. to 5-7 per cent by enlarging the customer The main principles exercised in the com- base and intensifying the activities with the pany are those of honesty, responsibility, existing customers. The catalogue of their ability to mutual understanding and quali- own brand name products is constantly be- fied consultation. ing updated and new products are added in The main field of concern atUkragrocom accordance with the customers’ needs. In is trading mineral and water-soluble fer- the upcoming year the company would like tilizers, plant and seed protection prod- to extend the number of representative of- ucts. Ukragrocom collaborates with such fices in Ukraine which will lead to increas- companies Syngenta, Bayer, Basf, Pioneer, ing sales to 5 more per cent.

10 october-november • 2014 BUSINESS PARTNERSHIP

The owner and CEO of the company Valeriy M. Plichko agreed to answer the key questions. – Tell us about the sectors that are of grave importance in the current development of agricultural business in Ukraine as a whole and your company in particular. – We take a predominant position in the sphere of delivering mineral fertilizers; we dynamically extend the amount of seed realization, plant protection products and water-soluble mineral fertilizers. Today our company takes a new direction of complex agricultural support on a qualitatively new level. All our achievements, knowledge and – What products under this brand are experience are bound to work for farmers available for the customers? with no exceptions. – Actually it is a powerful range of products of high quality; earlier the basic herbicides, – What features distinguish your com- fungicides, insecticides and desiccatives pany from other ones in this particular were included in the brand, now it is more industry? popular and the variety of products is always – The main goal of our company is to meet extending. Now we have 23 own products. the requirements of agricultural producers, We are particularly proud of the fact that so we introduced our own brand of plant Ukrainian agricultural producers are per- protection products Greenfort. In order to sonally convinced that “The green fortress guarantee the highest quality of our pro- Greenfort” stands guard for the main crops. duction and provide our customers with On the other hand, equestrian principles of effective fertilizers at affordable prices the running the business and deep understand- company Ukragrocom launched its own ing of the customers’ needs followed by our project Greenfort. management make Ukragrocom a strategic partner of domestic farmers.

– What are the principles of your work? – The main and final principle of our work is a high quality of all the products without any exceptions. Hence this quality can be obtained only with qualitative active materials and components, high level of production, appropriate conditions of transporting and reservation, quality inspection on different levels. We are keen to cooperate not only on the domestic market, but also in countries of the EU and the United States of America. Cooperation with foreign partners was always an important component of our work paid much attention to. If you have any business pro- posals or questions, please contact us on [email protected] or [email protected]. We are always ready to communicate! The company Ukragrocom, let’s take care of the harvest together!

october-november • 2014 11 BUSINESS PARTNERSHIP INNOVATIVE APPROACHES TO IMPROVE OPERATING SAFETY OF HYDRO POWER PLANTS IN UKRAINE

Bancomzvjazok has been success- AUTOMATED CONDITION fully working in the energy industry MONITORING SYSTEM PROVIDES: for over 15 years. Understanding the necessity of technological and Automated measuring and recording technical improvement of systems of physical quantities characterizing for the on-line construction con- the construction condition: dition monitoring, dictated by different aspects of design solutions, • sizes of temperature joints of con- complex engineering-geological and crete-steel constructions; hydrological building and operating • inclination of supporting construc- conditions and also by raised safety tions according to the horizontal requirements, company specialists level; have developed the «Titan» auto- • tension of material of supporting mated construction condition moni- structures and bases; toring system. • displacement of the construction relative to reference (control) points; This system collects, analyses, stores • displacement of horizontal planes and visualizes data from all sen- relative to each other; sors, which pick up the changes in • deformation of the construction and structure condition, in an integrated bases of concrete structures. manner. Automated measuring and recording of natural and industrial parameters, «TITAN» SYSTEM CAN BE influencing on the construction con- ADAPTED FOR ALL TYPES dition: OF CONSTRUCTIONS: • dams • level and temperature of ground water; • tunnels • level and temperature of river (chan- • mines nel) water; • bridges • volume of water flowing over draina- • high-rise buildings ge system of the construction; • towers • water pressure on the level of con- • architectural monuments struction base; • shopping and entertainment malls • rain capacity, atmospheric pressure, • sports structures air temperature and humidity, wind • other constructions of increased direction and force. complexity Automated comparison of sensors readings with rated values and signa- ling on exceeding on predetermined level of values.

12 october-november • 2014 BUSINESS PARTNERSHIP

Architecture of the automated monitoring system «Titan» system provides:

• comprehensive monitoring of hydro plants, including their current condition assessment; • assessment of structural wear and safety of structural elements; • technical inspection of structures based on operation and maintenance requirements and other regulatory and guidance documents; • prediction of the behavior of structures; • timely prevention of emergency situation; • minimization of the influence of human error on the construction safety.

A statistical review of structural safety shows that the probability of accidents at engineering structures equipped with sensor monitoring systems is at least an order of magnitude less than without them. The cost of the monitoring equipment is less than 0.5 – 2 per cent of the overall cost, and far less than the cost of damage which could otherwise be caused.

«Bancomzvjazok» JSC is a high-tech company that provides tailor-made and effective integrated information management solutions for corporate clients since 1993.

We are open for mutually beneficial cooperation and partnership

Shchuchyk Eduard Stepanovych Director of BANCOMZVJAZOK JSC Services: • facility audit and development of techni- • construction work organization/execution; 69V Frunze Street, 04080, cal specifications; • field supervision; Kyiv, Ukraine • development of technical solutions; • commissioning; Tel.: (044) 496 0096 • design; • personnel training; [email protected] • selection, delivery and installation of • project management; www.bkc.com.ua equipment; • warranty and post-warranty service; www.titan.bkc.com.ua • development of specific software; • technical support.

october-november • 2014 13 BUSINESS PARTNERSHIP

SAVE YOUR MONEY! THE EUROPEAN GROUP OF COMPANIES COMPETENCE CENTRE ECM KNOWS THE RIGHT FORMULA FOR EXPENSES REDUCTION IN BUSINESS

owadays truly successful and estab- lished companies reach a new stage of competition and prefer sustaina- Nbility of their businesses above all. The notion of sustainable business is rather comprehensive. In manufacture it means producing a qualitative and organic product. In performing business, nevertheless, it means creating corporate culture, financial accounting, business transparency and mi- nimizing the expenses. Only the most simple and clear business can be sustainable. Moreover, this business is not only fundamental to the current image and commercial success of the company, it also allows laying the foundation in the development of one’s country and provides the future generations with wealth. And the right business process optimization within the company improves its activity and helps to spare significant means. All the executives desire to quicken the business processes, make the work of their emp- also heightens the area of the employees’ exp- es in opposition to local companies are those loyees more effective and cut the expenses at ertise in the Centre of Certified Teaching. of providing the clients with several modern the same time. However, most of them avoid We actively participate in developing the business optimization systems: European, changing anything and running business in a clients’ businesses and are engaged in vario- Ukrainian, American and Russian ones. As new way. Luckily we know and can do this. us directions: we design enterprise portals, well as providing a secretive full-scale range Competence Centre ECM was founded in business decisions in the field of budgeting of services able to be chosen in any configu- 2014 with its main office in Warsaw. In Ukraine and financial management, deliver top-ra- ration. If necessary, we have a Support Hot- ECM is represented by the company LAN SE- nked specialists’ outstaffing services, etc. A line service for all our clients”. RVICE, which since 2008 turns into reality the Support Hotline and Centre of Certified Te- most complex projects all over the world. We aching is also available to all our clients. THE RIGHT FORMULA specialize in diagnosis and treatment of busin- ECM has much to offer to its clients. The A great number of companies nowadays have ess “illnesses”: we optimize the client’s business group is an official partner of such systems difficulties that need to be solved immedi- by means of analyzing business and implem- as DIRECTUM, DocsVision, Tezis, PRES- ately. But hardly any of them know what to enting the ECM systems in Ukraine, Georgia, TIMA, Microsoft, ABBYY and others. do in this case. We offer a “right sustainable Russia, Republic of Moldova and Europe, too. “We have brought our successful long-term formula” of optimizing the business. Our group specializes in optimizing the clien- working experience in different countries all t’s business by offering organizational, process over the world to the European market”, says GEOGRAPHY OF CLIENTS and project consulting services, business ana- Olena Olishevska, the executive director of We have achieved great success on various lysis and implementation of ECM systems. It LAN SERVICE. “Our competitive advantag- markets, that is why our company has carried

14 october-november • 2014 BUSINESS PARTNERSHIP

Type of difficulty Result of our solution such as contract, budget, financial flow and Ratification of significant paperwork is irra- These processes will be quickened by 5 times acquisition management. tionally time-consuming? Prices for the full-scale range of services It seems to you that your employees could The KPI of your employees’ work capability will and round-the-clock support from our work more effective? grow by 30 per cent. Group are notably lower than those on Searching for necessary documents is time- This search will take only 2 up to 10 seconds the European market. We offer qualita- consuming? You cannot find the documents at all? Loss is eliminated tive service at a reasonable price. Not without reason the slogan of ECM is Is it hard to monitor the process of complet- Everything is under control ing tasks? Save your money! You have to be at the office non-stop? Mobility of work position SQUIBS The expenses at maintaining the company We’ll teach you how to cut your expenses! Cases in which optimizing business is a keep rising? necessity: out more than 100 projects in 30 different als enable us to bring the most complex – The main business processes are not reg- companies in Ukraine, Russia, and the Re- projects to life. This can be proven by a reli- ulated. Each of the participants has their public of Moldova. The service and system able list of our clients”. own ideas and runs business according quality of LAN SERVICE has already been Big and medium businesses, international to their understanding. Functions are estimated by the National Bank of Ukraine, corporations and holding companies are duplicated, so inconsistency arises. The enterprises of the group METINVEST, potential clients of the Competence Centre work is carried out too slow and ineffec- the group of companies Ukrlandfarming ECM. Special attention will be paid to phar- tive, the result is unsatisfying. (ULF), the international pharmaceutical maceutical companies, agricultural busi- – Most of the time the top-management corporation TEVA, the international phar- ness and retailers. deals with urgent executive questions maceutical corporation ABBOTT, the pub- In 2015 we predict the European market to with no time left to solve strategic tasks. lic limited company Taskombank, the State have particular demand in consulting and – Company clients remain unsatisfied with Administration of Taxation in the Republic business computerization services that will the company’s response time, the time of Moldova, the group of companies NO- help to cut down huge expenses in compa- of order processing or services provi- VARD and many others. nies. These services meet the latest world- sion, the quality of services rendered. “Services at the Competence Centre ECM wide tendencies: many companies try to – While executing the process information would be of great interest to the European optimize their businesses and cut expenses within the company can be lost. Search- business community at large”, says Olena nowadays. Due to this we offer our clients ing for necessary information is time- Olishevska. “Our highly-skilled profession- various business decisions in the first place, consuming.

An outline of the history: Board members of the IBM Corporation found it rather interesting why the average application processing time of a credit ar- rangement for a personal computer takes one and a half months. They found out that all application forms were checked in consecutive stages by several depart- ments, each of them examining a certain aspect (e.g. credit history, debts, property, and so on). And it was repeated in every department! In order to improve this situation specialists generated a multiterminal expert system that computerized the processes, allowing the clients in a couple of days to find out whether their credit application has been confirmed. Optimizing this process led to sales growth and saving costs for experts.

october-november • 2014 15 BUSINESS PARTNERSHIP

RADOSVIT  AN UKRAINIAN EXPERT IN TWINE AND ROPE INDUSTRY

he LLC Radosvit is a company that continues and multiplies the Ukraininan traditions of the Ttwines and ropes industry. As our forefathers pointed out «the bonds between generations are lost without ropes», and «life without twines turns into chaos». Exactly these words define the acti vity of Radosvit. Radosvit is a relatively young company. It’s history begins in 2004, when the founder Oleksandr Mykolenko made the first measure- ment for a grateful buyer. The main profile of the company is delivering twines, threads and ropes of own coils. Radosvit has its own spooling equipment, so the skeins are thorough and of high quality. Both in business and everyday life the company nourishes respectable, sincere and trustful atti- tude towards the customers and business partners. Most of the clients are chains of hardware stores and appliance shops, such as Epicentre, Nova

16 october-november • 2014 BUSINESS PARTNERSHIP

Linia, Auchan, a number of stationary, gar- den equipment shops, etc. A variety of goods is presented here: twines (jute, linen, polypropylene ones); ropes (jute, linen, sisal ones); threads (caprone and polypropylene ones). The main competitive strengths of Radosvit’s products are natural four-stranded ropes (6-30mm in diameter) and tiny exact wind-up spools for twines and threads. All the ropes are delivered by 25 meter-long coils, twines are packed up in boxes containing 24 pieces. In Ukraine twines are mainly used for tying up plants and balers. But the spheres of their exploitation are not restricted. They may be used for stationary needs, sealing (in the banking system) or decoration. Twines can be made both of natural and synthetic fiber. We designed a comparison table, so our clients find it easier to choose the right type of twine. Nowadays natural jute twines are of greatest demand among buyers. They are pretty mul- tifunctional, for example in tying up plants, Linen is the traditional raw material in our The company seeks to integrate both packing, sealing in the banking system, and, country. The cultivation of linen in Ukraine into the domestic and the European most important, in decoration they may be is being restored nowadays. Also Radosvit market, first of all as a supplier of quali- of great use. Alcohol bottles, clay pots, soap, offers a variety of linen twines and ropes of tative twines and ropes and aimed at rag dolls – twines are used everywhere. the highest quality. constant development for establishing friendly, mutually beneficial and collab- Property of the twine (the samples Natural twine Synthetic twine orative partnerships. Your cooperation are equal in diameter) (linen, cotton, jute) (polypropylene) with Radosvit will bring you positive Natural ﬁber YES NO results and happines by using its twines and ropes. Lives longer under the sun YES NO

The knots are more solid YES NO Author: director, Mykolenko R. O., Stronger breaking force NO YES 8 Moskovskyi Avenue, Kyiv, Ukraine Resistance to decomposition NO YES tel. +38(044)592-46-86, +38(050)611-58-66 e-mail: [email protected] More often used in decorations YES NO web-site: www.radosvit.ua

october-november • 2014 17 BUSINESS PARTNERSHIP

READYFORUSE RADIOPHARMACEUTICALS

esearch and Develpoment (R&D) «Generating a portable compact extraction generator for producing solution sodium pertech- R99m netate Tc»

Modern diagnostics involving nuclear medicine techniques is widely used in clinical practice. The main statistical indicator of developing this course in the health care system in the USA and countries of the EU remains the number of radiological examinations being conducted yearly per one thousand people among the population. On the average this index amounts to 40-50 in developed countries, in Ukraine, according to different estimates, it doesn’t exceed 3 explorations per year. The Cabinet of Ministers of Ukraine en- acted the «Nuclear Medicine Development Perspective for the Period until 2017» by Decree No. 130 from March 13, 2013 (here- needs of nuclear medicine are satisfied on – as a result there is some psychological inafter the Perspective). account of import deliveries from Poland impact due to these defects: on the one The Perspective defined the directions of de- and the Republic of Uzbekistan. hand, doctors have certain doubts con- veloping national production of radiophar- Both sorption and extraction oscillators are cerning the quality of the pharmaceuti- maceuticals and equipment for radiologic used for industrial generation of sodium cal preparation, on the other – patients diagnosis with the purpose of conducting pertechnetate 99mТс. fear taking it; the latest forms of diagnostic testing. The sorption generator has been suggested – the clinic itself has to resolve issues of radio- The sodium pertechnetate99m Тс which is in the 50-ies of the last century. ecological safety concerning the treatment eluted from the radionuclide 99Мо is the Up to now this generator is still applied in and disposal of radioactive waste, etc. most frequently used radiopharmaceutical clinics for the 99mTc eluation practically with- In order to eliminate these defects European in diagnosing illnesses. out significant structural changes. However, countries have come to a decision to employ 99mTc turns out to be a perfect pharmaceu- design flaws quite often neutralize its main the principle of «ready-for-use radiophar- tical radionuclide as its half-life period advantage – ability to carry short-live iso- maceuticals» in producing radiopharmaceu- (6,01h) is sustainable enough to complete topes over long distances. ticals; it means producing radiopharmaceu- the diagnostic testing of visceral organs of The main defects of such generator con- ticals exclusively at pharmaceutical factories living bodies, and yet short enough to instructions are: or at large radiological laboratories equipped ject the patient the minimal dosage of the – a high probability of molybdenum «intrusion» correspondingly. Now various countries all radionuclide. into the pharmaceutical during its elution; over the world apply to the strategy of de- There is a lack of domestic production of – inability to test the quality of radiophar- livering prepared unit dose packages into radiopharmaceuticals in Ukraine and the maceuticals in clinical conditions; clinical facilities exclusively in the form of

18 october-november • 2014 BUSINESS PARTNERSHIP medical syringe – the so called «unit dose service», the preparation and quality control of which is tested under factory conditions. The method of extractive obtaining of the 99mTc solution, among other newly developed methods, can meet the demands of the «ready-for-use radiopharmaceuticals» principle most accurately. The usage of centralized extractive generators (CEG) has spread lately. CEGs are stationary installations, which are able to meet the needs in radiopharmaceuticals at hospitals in large cities, several regions or regional metropolises. The practical application of CEGs (Moscow, Russia, RPE Radiopreparat; Saint-Peters- burg, Russia, Radium Institute at the Russian Academy of Sciences) has shown a number of deficiencies in exploiting them, namely: – inability in relocating the generator itself as it contains stationary «hot cells» – protective boxes designed to secure the personnel while working with radio nu- clides of big (50 Cu) activity; – the dependency of the radiopharmaceuticals supplier company from the major Production and appliance of portable com- over long distances) and the CEG (satisfy- megapolis «bane» – traffic jams. pact extraction generator (PCEG) helps to ing the «ready-for-use radiopharmaceuti- So, existing generators cannot meet the solve the questions mentioned above. Given cals» principle). constantly mounting needs of in sodium that the PCEG possess the features both of This given operation principle must align pertechnetate 99mТс to the full extent. the sorption generator (the ability to move with the GMP instructions and the existing pharmaceutical demands; as for the construction – it has to coincide with radiative hygienic,radiative-protective and technical standards applied at «clear» premises. The raw material for the PCEG is the acti- vated 99Мо tried and tested at any nuclear research reactor. The Ukratominstruments corporation seeks for a partner in co-developing and production of an experimental program in Ukra- ine including experiments on the portable compact extraction generator and clinical testing of the pharmaceutical.

The «Ukratominstruments» corporation («Ukraini- an atom instruments and systems» corporation) Address: Oﬃce 224, 152 Gorkoho Street, Kyiv, 03680, Ukraine Tel./Fax: +38 044 501 61 78, +38 044 528 33 56 +38 044 529 22 96 E-mail: [email protected] Manager: Executive Director – Valeriy S. Petrenko

october-november • 2014 19 BUSINESS PARTNERSHIP

CREATIVENESS!

COMFORT! body wants to keep up with the up-to-date style and fashion. Coats and raincoats are inseparable parts of every person’s wardrobe, and suitable outdoor clothes do not only QUALITY! make you warm in cold weather, but also un- derline your personality, create a nice mood LC Lela, situated in Kyiv, is a sus- and make you more confident. Working in Reasonable prices combined with highly tainable and fast-growing Ukrainian the world of severe competition, our design- qualified production make the LLC Lela manufacturing and trading compa- ers and developers still cope with the task a perfect partner in a long-term, reliable Lny founded 19 years ago under the of creating clothes for customers that prefer and mutually advantageous type of co - auspices of one of the leading and major both classic and youth clothing lines. o peration. French companies «LENER CORDIER». The LLC Lela releases seasonal collections, Fashion trends only, a genuine French style During these years our company has proven namely fall/winter, spring/summer. All goods and high quality fabrics of excellent perfor- itself as a successful fashion company on the available are represented by a huge collection mance – that’s the motto of our personnel! Ukrainian market. In the years 2008-2009, (more than 300 designs a year) of coats and Creativeness! Comfort! Quality! – thanks during the crisis, Lela didn’t stop working, on raincoats of the prêt-à-porté class. to these conditions our clients stick to us for the contrary, it saved and increased its status. While manufacturing coats we use only natu- years! The main products of the LLC Lela are coats ral woolen fabric of high quality produced in and raincoats for men, women and also chil- Italy, France and Belgium; natural cotton rain Tel.: (+380 44) 585-5973, fax: (+380 44) 585-5971 dren, both of school and kindergarten age. wear fabric of Korean and Vietnamese pro- e-mail: [email protected] The world is fast-changing, and still every- duction is used in manufacturing raincoats. www.lela.com.ua

20 october-november • 2014 MEDIATION CENTER at the Kyiv Chamber of Commerce and Industry

Mediation is a present-day mechanism of alternative dispute resolution that implies a confidential flexible negotia- tion process when an independent person (a mediator) provides qualified assistance to parties in reaching agreement (mutually advantageous solution) on resolution of a dispute or differences. It is understood that parties control absolutely a resolution-making process and determine by themselves conditions for dispute settlement.

The KCCI Mediation Center was opened following the Chamber’s participation in the Partnership Program between Leipzig Chamber of Commerce and Industry Mediation has many obvious advantages, speciﬁcally: (Germany) and the Lviv Chamber of Commerce and Indus- • Conﬁdentiality; try supported by the German Federal Ministry for Economic • Time and money saving; Cooperation and Development and with kind assistance • Mediator’s independence and impartiality; from the Project Business Manager Mr. Volker Stötzner. • Equality of parties; In setting up the Center the Kyiv CCI used experience of the • Mediation procedure comfortable for parties; Munich CCI Mediation Center which activities were studied • Parties have a prior knowledge that only resolution satis- by experts from Ukrainian Regional Chambers during their factory for both parties and encouraging a compromise visit in October 2013 within the Project. would be a result of successful mediation; • Maintaining partnership relations.

30.05.2014 the KCCI Presidium approved: • Regulations on the KCCI Mediation Center • Regulations on the KCCI Mediators • Regulations on the KCCI Mediation Procedure • Regulations on the KCCI Mediators Council • Regulations on Information and Consulting Services Fees (the KCCI Meditation Procedure fees)

In addition, the KCCI Register of Mediators was approved. Register of Mediators includes experts who passed “mediation” training course in Ukraine and abroad and have experience in mediation in various areas.

Call us at +38 050 4644495