Business Herald International Law&Business Business New S in T E R

Ukrainian digest Chamber of Commerce and Industry business Herald international Law&business business new s In t e r

a t i o n a l e c m r t i o n s L a w & b u s i n e b u s i n e w I n t e r a t i o n a l

1 business news

ing for the new markets, the Klei Ukraine and Saudi Arabia struction cost is estimated at 700-800 Adhesive Machinery implements the will jointly construct air- mln dollars. international quality standards, ISO planes The Ukrlandfarming structure 9001 including, and develops pro- includes 111 horizontal grain storage duction. «Taqnia Aeronotics», a daughter facilities, 6 seed plants, 6 enimal feed entity of the Saudi company for de- plants, 6 sugar plants and 2 leather The main field of the company activity – supply of hi-tech equipment velopment and investments and «An- producing plants as well as an egg to glue various materials. The com- tonov» State company have signed products plant «Imperovo Foods», 19 pany designers develop machines the agreement on development and poultry-breeding plants, 9 hen farms, according to the client requirements production of the light transport plane 3 poultry farms, 3 selection breeding and their high-class specialists ma- An- 132 in Saudi Arabia. The main farms, 3 long-term storage facilities terialize their ideas in metal. That’s goal of the agreement is to fulfill a and 19 meat-processing plants. number of tasks in aviation construc- why the company machines meet tion and technology transfer to Saudi the world requirements. But they are Arabia as well as to train Saudi per- much cheaper. That is why the company operates at full capacity. Soon sonnel by the Ukrainian experts for LFMP WILL INCREASE AGRI- one of the machines will be shipped operation in the field aviation con- CULTURAL MACHINERY PRO- to a Baltic country. struction. DUCTION BY 2.5 TIMES In line with the above agreement the Scientific-technological In 2015, Lozova Forging-Me- center named after King Abdulaziz chanical Plant (LFMP) is going to ZAZ plans to produce (KACST), «Taqnia Aeronotics» and increase its agricultural machinery 1,3 thousand cars during «Antonov» State company will further production by 2.5 times. In addition to two months develop and modernize the existing traditional equipment, the new agri- model An-32 to achieve better char- cultural machinery, bridges for repair Zaporizhia auto works has fully acteristics as to the useful payload, and road machinery will be produced renewed car production after a shut- range and take-off parameters. The and special-purpose machinery will down at the end of 2014 and intends new plane will have the name An-132 be repaired. To this effect, an ad- to manufacture 1,3 thousand cars and Saudi Arabia will enjoy the intel- vanced painting chamber will be pur- within two months. lectual and designing rights of the chased and a new brand «Lozova Due to a sharp market drop the plane. Machinery» will be introduced to the plant had to slow down production Ukrainian and international machine- rate to 5-7 cars per hour with the building markets. It should be men- monthly production program of 650 tioned that this Plant is the only one cars. in Ukraine manufacturing transmis- There are no forecasts in the sions for armoured vehicles, there- company for the number of cars per fore the Plant management expects year due to the unstable economic new orders for special-purpose ma- and political situation in Ukraine. chinery repair. According to the information Bridges for repair and road ma- from UKRAVTOPROM sales of the chinery is another promising direction ZAZ cars have dropped by 55% – since there expanded the equipment to7,9 thousand cars, while the total production in post-Soviet regions due car output in Ukraine dropped by to rising costs for foreign machinery. 43% to 28,75 thousand cars. Much more orders are already placed at LFMP. Ukrlandfarming will construct a grain terminal Hi-Tech equipment for the Ukrlandfarming Agroholding developed countries. plans to start construction of the grain terminal in the sea trade .port of «Piv- «Klei Adhesive Machinery» com- dennyi» (Odessa region) in July this pany has invested $ 500.000 for its year. The company is to complete production renovation. construction of two docks by 2017. As a result, now 80 % of its prod- The earlier set term by ucts go for export, including devel- 2014 was delayed due to political and oped countries like Holland, Sweden, economic crisis in the country as well Uruguay, Serbia, Georgia, Estonia as shortage of company funds. Con- etc. As the company goal is search-

2 Overall reconstruction «Astarta» bought agro of the Trypillia Termal Pow - company in Kharkiv Region. er Station (TPS) «Astarta» Agroholding – the The Trypillia TPS which be- Ukraine’s largest sugar producer has longs to the «Tsentrenergo» Public completed all formalities in the first Joint-Stock Company has reached quarter of 2015 for buying «Savyntsi- a set power capacity of its 325 Mwt Agro» LLC (Kharkiv region) which is Block 2 following its massive re- involved in growing technical and oth- construction which has been go- er agricultural products. ing on since the beginning of 2013. The cost of the contract is EUR The cost of this project – 1,168 bln 462 thousand (nearly 11,75 mln hryv- hryvna, the pay-off period – up to na). 7 years. The reconstruction of the Block 2 has made it possible to increase its power by 25 Mwt ,to install a modern system for emission clean- THE «KTP» WILL PRODUCE ing (sulphur includimg ) as well as a UKRAINIAN-FINNISH HARVEST - new control systems. In general, the ERS scheduled service term of the Block 2 has been prolonged by 20 years with The Kharkiv Tractor Plant (the the possibility of further prolongation. «KTP») signed an agreement for co- As an example, the reconstruc- operation with the Finnish «Sampo- tion works of the boiler house section Rosenlew» company. According to have been made with the assistance Director General of the «KTP» JSC of the «Kotloturboprom» LLC (Harkiv Vladyslav Gubin, negotiations lasted city). Earlier similar works had been for almost a year, and now the com- done by the Russian companies only. pany had already finished upgrading Eguipment and machinery from «Tur- production lines for the production of boatom» and «Elektrovazhmash» new machines. (Harkiv city) as well as from «Radiy» «We want to produce their entire (Kirovograd city) were also used. line range of equipment – grain har- THE «CHEESE CLUB» IN- vesters, trailers as well as to service VESTED IN NEW VARIETIES OF them. This year we will produce a pi- CHEESES 22ND START OF THE «DNIPRO» lot batch and next year – at least 200 units», – he said. PROGRAM The «Cheese Club» company, which is among the five largest man- The «Dnipro» carrier rocket suc- ufacturers of cheese in Ukraine, in- cessfully launched into orbi «Komp- vested 700 thousand hryvnas in the Sat-3A» – a Korean Earth remote IN 2015, THE «ZTMP» WILL production of new varieties of cheeses, HOLD A MAJOR OVERHAUL sensing satellite weighing 1112 kg. which are expected to replace expen- The «Dnipro» rocket is based on sive imported brands of cheese. The an intercontinental ballistic missile, In 2015, the Zaporizhye Titani- first batch on new products – 12 tons um-Magnesium Plant (the «ZTMP») which was developed in the 1980s – is already being sold in trading net- by the «Pivdenne» Construction Bu- plans to increase production of tita- works. nium sponge to 9,4 thousand. tons reau named after M.K. Yangel and Since Ukraine joined the WTO in is manufactured by the «Pivdenniy» (in 2014 7,2 thousand tons were pro- 2008 and since the reduction of the duced). It is also expected to perform Machine-Building Plant named after import duty, the volumes of imports of O.M. Makarov. a number of large-scale renovations foreign cheeses to our country have in the main production facilities. This carrier rocket is used to increased dramatically: from 4 thou- launch targeted and cluster satellites «In addition, our new HR-policy sand tons in 2009 to 17 thousand tons is focused on staff training and imple- on orders of many countries. The in 2013. However, in early 2014 the «Kosmotras» international space mentation of various incentive pro- volume of imports of European manu- grams. Therefore, in 2015 we set a company performs modernization facturers products began to fall. It is of the rocket with the involvement of goal to train 1200 workers and 360 expected that this trend will continue managers and professionals. The Ukraine. this year. The main reasons for this sit- This was the 22nd start of the introduction of innovative technolo- uation were devaluation of the hryvna gies requires new skills at work», – rocket during implementation of the and introduction of additional 10-per- «Dnipro» program. said the director of the «ZTMP» Ltd. cent import duty on all food products. Volodymyr Syvak.

3 business news

«Ovostar Union» THE «ZTR» ENTERED THE SAU- THE «IMPERIAL TOBACCO» has icreased its net profit DI ARABIA MARKET INVESTED 255 MILLION HRYVNAS IN LOGISTICS «Ovostar Union» Group one of The National Grid SA compa- the major producers of eggs and egg ny, which is a division of the Saudi Investments of the tobacco com- products in Ukraine has increased its Electricity Company, has ordered pany were earmarked for opening net profit in the first quarter of 2015 spare transformers from JSC «Zapor- of the largest in Ukraine automated by 16% - to $ 9,12 mln. izhtransformer» (the «ZTR»). This is high-rise warehouse with the capac- The company produced 277 mln the first contract of the company with ity of 16,2 thousand pallets, which eggs in January-March 2015 which a Saudi Arabia partner. is located on the company’s pro- is 21% higher then during the same The task to enter the Saudi duction site in Kyiv. Out of 255 mil- period in 2014. market was set by the ZTR in 2010. lion UAH of the total investment in the However, due to the fact that before project, 60 million UAH was spent to getting opportunity to sell equipment purchase modern equipment and to to divisions of the Saudi Electricity development software. BERDYANSK SEAPORT IS Company a manufacturer should be The warehouse launch will allow A WINNER OF NATIONAL RATING included in the list of approved suppli- to significantly reduce operating costs ers of the company, a lengthy proce- by eliminating the services of external The VIII-th National Maritime dure of re-certification was required. contractors, and to reduce delivery Rating named 49 winners in 20 cat- It was completed in early 2014. The time of products to distributors. egories. Among them – the Berdy- «ZTR» is currently the only enterprise The «Imperial Tobacco» in ansk commercial seaport, which re- among the post-Soviet countries Ukraine is represented by Davidoff, ceived two awards – «The Absolute which passed re-certification at the R1, Prima, West, Delta, Express and Growth in 2014» and «Growth Rates Saudi Electricity Company. Style brands. – 2014». The «ZTR» company has also re- In a year, which was difficult for cently signed a contract for the supply of the country, the company, located in four 167 MVA 500 kV transformers and the front line area, set a record in the of three 60 MVA 500 kV reactors with history of its existence: it processed «EFACEC» – Portugal’s largest energy 1005,5 thousand tons of cargo more company. Delivery of the equipment will than during the previous year and in- made as a part of construction of a new creased volumes of cargo processing «Jvari» substation in Georgia. by 50,7%.

THE «UIA» HAS LAUNCHED NEW FLIGHTS TO CHINA

The «Ukrainian International Air- lines» (the «UIA») opened a new flight from Ukraine to China. Flights to Bei- jing will be operated by «Boeing 767- 300ER» extended range aircraft with three classes of service – business, THE «STEPNIY» BREEDING premium and economy. PLANT HAS BOOSTED PRODUC- In addition, the «UIA» intends to TION VOLUMES cooperate with Chinese «China Air- lines», «Hainan Airlines» and «China The «Stepniy» breeding plant Southern Airlines», hoping to further ex- of Kamyansko-Dniprovskiy district of pand the network of routes to the East. Zaporizzhya region last year for the Also, the plan to launch in 2015 first time exceeded the level of get- flights on the Kyiv – Toronto route has ting eight thousand liters of milk per not been abandoned. In January, Ca- cow a year, which is the highest in the nadian aviation authorities gave an region. In 2014 milk production was official notification to the «UIA» of the increased by 406 tons, milk yield per successful passage of aviation secu- cow increased by 799 kg and reached rity audits and issuance of permission 8156 kg. At present about 14 tons of for flights to Canadian cities. milk are produced daily. Among other new directions of The factory has a complete cycle the company – flights from Kharkiv to of production of milk and milk prod- Larnaca (Cyprus) and from Odessa to ucts (sour cream, yogurt, sour milk, St. Petersburg (Russia). hard cheeses and butter).

4 5 UCCI: International economic relations

THE WORLD BANK IS PREPARING A PROJECT OF DEVELOPMENT OF THE PRIVATE SECTOR

Representatives of the World Bank Country Office in Ukraine visited the UCCI. The meeting with the leadership of the Chamber was held in connection with preparation of the project of development of the private sector in Ukraine. With this goal, representatives of the World Bank are holding a series of meetings to understand priority clear objectives and needs of Ukrainian businesses, so that the planned project has an effective influence on the economy of Ukraine.

Restructuring of state enter- the goal of development. It provides fi- fices of the Bank in different countries prises, deregulation, expansion of ex- nancial and consulting aid in over 100 of the world engage in realization of its port activity and aid in creation of agen- developing countries. programs, maintain connection with cies with the help of investments was The Bank develops strategies governments and civil society and discussed. of aid for each of its country-clients in contribute to a deeper understanding The World Bank was founded in cooperation with government bodies, of development problems. Ukraine is 1944 and is one of the largest organiza- non-governmental organizations and a country-member of the World Bank tions in the world which provide aid with the private sector. Representative of- since 1992.

Representatives of the Ukrainian CCI in the Public Council of the Ukrainian MFA

The Ukrainian Chamber of Commerce and Industry as a social institution has considerably strengthened its positions in this structure.

In addition to Mr. Gennadiy CCI, and Mr. Gennadiy Boldyr, Director advisory body, formed to provide for Chyzhykov, President of the Ukrai- of the Department of International Eco- participation of citizens of the country nian CCI, Mr. Vitaliy Zhmurenko and nomic Relations of the UCCI. in the management of State affairs, Mr. Mykola Zasulskiy, Presidents of The Council was formed by rat- formation and realization of State de- Dnipropetrovsk and Kyiv Chambers ings vote for candidates delegated cisions in the field of foreign affairs. of Commerce and Industry, have also from civil society institutions. Representatives of public organiza- been elected to the Council. As experts The Public Council of the Ministry tions, trade unions, local administra- for the Council were elected Mr. Myko- of Foreign Affairs of Ukraine is a per- tions, media and others may be elect- la Yaroshyuk, President of the Rivne manent collegial elected consultative ed to the Council.

6 UCCI: International economic relations

NEW STAGE FOR THE UKRAINIAN-IRANIAN COUNCIL

During a meeting between the management of UCCI and officials of the Embassy of the Islamic Republic of Iran to Ukraine, led by Ambassador Extraordinary and Plenipotentiary to Ukraine, Mr. Mohammad Bekheshti Monfared, main directions of cooperation and paths of expansion of bilateral relations were discussed. The sides agreed to raise the level of economic relations as the current state is not fully satisfactory.

Iran has great potential for export between the countries totaled nearly It is prohibited to export into to Ukraine of nanotechnologies, en- 900 million USD. Iran products and services related ergy sources, auto-products of indus- To structure relations between to nuclear programs and work with try, agricultural products (dried fruit), representatives of business circles heavy water; military equipment (bat- medications, etc. The Iranian side is would help the Ukrainian-Iranian tle tanks, airplanes, ships and mis- interested in leasing land for produc- Business Council. The Council’s main siles, etc.). Taking this into account tion of agricultural goods in Ukraine. task would be to help businessmen to great potential for development of our H. E. Mr. Mohammad Bekheshti Mon- find new partners. The initiative group trade is in selling radio electronic sys- fared, Iranian Ambassador Extraordi- for creation of the Council, which was tems, radio location, communication nary and Plenipotentiary to Ukraine, formed in 2003 at the UCCI, includes and other industrial equipment which underlined that the UCCI is the most representatives of oil and gas busi- is not prohibited for supply to Iran by suitable partner for realization of ness, trade organizations, agriculture the national legislation or by the UN these projects. and mechanical engineering from the Security Council. Iran is, without a doubt, one Ukrainian side. «I believe that these Good prospects for cooperation of the most advanced and stable areas would establish the foundation are in technologies of complex uti- countries situated in the region of of our future cooperation», – said lization of hard household and in- the Persian Gulf and the Middle UCCI vice-president Valeriy Korol. dustrial waste, which the Ukrainians East. Talking about the relation- General meetings of members could offer Iran. This actually brings ship between Iran and Ukraine, of the Ukrainian part of the Ukrainian- «profit from waste». Another new the Ambassador noted that, bas- Iranian Business Council have already Ukrainian technology which could ing on principles of mutual respect taken place. Prospects of the Ukrai- interest Iran, – recycling of rubble and general interests, the Islamic nian businesses on this market were in the process of industrial and resi- Republic always sought to deepen discussed, and the next steps for ex- dential construction. Apart from this, friendly relations with our nation. pansion of cooperation were planned. there is an interest in fuel cells which Rich cultures of the peoples of In connection to cancellation of allow to focus completely on the use both countries found potential for the embargo against Iran the markets of local energy potential and not to cooperation in the form of cultural of our countries have become more receive it from other sources. Ukraine and art events, sport competitions, attractive for each other. Previously has already some experience of youth exchange and others, and the a limited amount of products were working with these kinds of energy perennial experience of mutually exported from Ukraine to Iran, mostly generators and is ready to cooper- beneficial relations created neces- agricultural and metallurgical goods. ate with Iran on mutually beneficial sary channels for expansion of co- Today the Ukrainian entrepreneurs terms. operation. also supply wood for building of In relation to import, Iran could Cooperation between indepen- mines and railways. There are inten- help Ukraine in overcoming depen- dent Ukraine and Iran began in 1992. tions to sell freight cars for transporta- dence on certain products which we According to data from the State tion of raw materials to metallurgical previously imported from Russia, in Statistics Service of Ukraine, turnover factories as well as fertilizers. particular, petrochemicals.

7 UCCI: International economic relations

REPUBLIC OF SOUTH AFRICA – cape of good hope or the running lion

Portuguese explorer Bartholomew Diaz discovered South Africa in 1487 and called it the cape of Storm. King John II of Portugal realized that this cape had great value as it would lead to the treasures of India and renamed it into the cape of Good Hope. From that time South Africa became a trade route between Europe and Asia. It remains as such until today.

Looking for new possibilities dustry, cinematography, forestry, paper Representatives of many Ukrainian for the Ukrainian export to countries of and furniture industry, «green» en- companies come to South Africa to the African continent –this is question ergy and energy-saving technologies, take part in trade exhibitions and to which interests the modern business development of infrastructure, metal get acquainted with favorable oppor- community in Ukraine. The World Bank processing. tunities available there. Ukraine is al- predicts a yearly growth of economy of One of the biggest export items ready a large exporter of agricultural the African countries by 5-6% until the from South Africa, in particular, to products into South Africa. More and year 2020. The Mackenzie Global In- Ukraine, is wine. After the end of Apart- more South African products are avail- stitute called Africa «the running lion». heid, many South African winemakers able in Ukraine. Among the most popu- What will Africa be like in 2020? It is have been working together with wine lar products are South African wines. assumed that the total GDP of its coun- producers from France, Spain and Cali- Last year the export from South Africa tries will reach 2,6 trillion USD. With fornia for creating wines of «interna- to Ukraine increased by 168%, which regard to infrastructure, there are plans tional» style which could be successful is very pleasant for us – it shows that to be built a road corridor connecting on the world market. Ukraine is truly discovering Africa, in- the African South with the North. This cluding South Africa. would be the largest project of con- Interview with struction of a transport corridor. Mr. Christiaan – Are there any particular To quote the words of Mr. Chris- BASSON, Ambassador products or, perhaps, plans for tiaan Basson, Ambassador Extraor- Extraordinary and expanding export and import dinary and Plenipotentiary of the Plenipotentiary of the between Ukraine and South Af- Republic of South Africa in Ukraine, Republic of South Africa rica? the markets of the African countries in Ukraine. – Nowadays many trade exhibi- are a new territory for the Ukrainian tions are held in the Republic of South business. However, recently, there has Africa, in which your companies are been an interest for the growth of the actively participating. These are, first of level of relations between our coun- all, agricultural exhibitions and a food tries and improvement of bilateral and beverage exhibitions. South Africa trade. This indicates a new wave in has a very open economy – 63% of our the relationships between the coun- GDP comes from trade – import and tries and the activity of the Ukrainian export. This percentage is higher than business in overcoming the barriers of in the United Kingdom, it approximately distance and the risks of cooperating corresponds to the level of Switzerland, with a new market. – Could you briefly speak and Germany is on the level of 71%. The following priority directions about cooperation between It is also a very competitive economy, for South African economy growth and Ukraine and the Republic of because everybody buys and sells in development were defined: creation of South Africa? South Africa, companies and people new materials, aerospace, agriculture from around the world. Therefore, it and food industries, automotive and – For a long period of time, the is very important for the Ukrainians auto components industry, engineer- relations between our countries were to establish good partnership rela- ing, including production of large and not at a level they are worthy of, but tions in South Africa. I think there are medium-sized trucks, equipment for during the last year we saw from both many opportunities for your products general transport systems, light in- sides a new interest for cooperation. in the Republic of South Africa, and for

8 UCCI: International economic relations

South African products – in Ukraine. – What would you like to You should look at Africa not only as a wish to readers of our magazine T rade turnover market for your products but also as a between Ukraine and – to Ukrainian businessmen, the Republic of South country where Ukraine can find many entrepreneurs? Africa in 2014 – economic partners in the wider sense. – I believe that Ukraine is moving Africa can become an object for Ukrai- in the right direction. I think that there 273,3 mln. USD nian investments, as well as for use of could be a difficult period, but it will not ( by 4%) the latest Ukrainian technologies. last forever. I believe that your Govern- ment has chosen the right mechanisms including export – – Is there a Chamber of and systems for further growth. In my Commerce and Industry in opinion, you have everything for good 106 mln. USD (by 28,7%) South Africa? growth – qualified workers, very good – We have several Chambers of agricultural and production potential. Commerce and Industry – the main Therefore, there is no reasons not to and import goods – office, offices in Cape Town and Jo- achieve success in the future. I wish all hannesburg. I must say, the relations entrepreneurs of your country success between our Chambers are developing and prosperity of their businesses, and 132 mln. USD quite well. peace and well being to all Ukrainians. (by 68,3%).

INTERNATIONAL EXHIBITIONS WILL OPEN DOORS FROM UKRAINE TO KUWAIT, THAILAND AND CHINA

scale purchase of food products is beverages and specialized equipment, Participation in international exhibi- made in Kuwait. It is planned to involve which has a serious effect on develop- tions offers real opportunities to other Arab states of the Persian Gulf in ment of the Asian-Pacific region and Ukrainian producers for expansion getting acquainted with Ukrainian food usually attracts over 2 thousand ex- of markets for their products, to products. Each company-participant will ponents from over 60 countries of the learn about new technologies and be provided with an exhibition space of world. Thematic sections of the exhibi- establish business contacts. The 9 square meters. The Kuwait side ex- tion are: wine and delicacies, milk prod- UCCI recommends Ukraine to small pressed their readiness to cover ex- ucts, sweets and appetizers, organic and medium-sized businesses to get penses connected to the participation in food, tea and coffee, Halal and frozen acquainted with some international the exhibition on territory of the Emirate, products, seafood, vegetables and fruit, exhibitions to be held in the first half and also to provide commercial cover- meat products, chocolate, preserves, of 2015. age of the event in local and electronic packaging. media. The UCCI also recommends to Among food stuffs which could par- producers of food products to turn their ticularly interest Kuwait partners are Ha- attention to the «THAIFEX – World of lal meat (meat of animals, killed by pre- Food ASIA» exhibition, which will take «Made in Ukraine», an exhibi- scription of Islam – notes), preserves, place in Bangkok (Thailand) in May. tion-presentation of Ukrainian produc- juices, mineral water, nuts, refined Its main visitors are business people ers of food products and beverages will sunflower seeds, ketchup, mayonnaise, of Thailand, Vietnam, China, Malaysia, take place at the beginning of the sum- flour, soft cheese, chocolate, caramel, Indonesia, the Philippines and India. mer in an exhibition center of the city of sunflower oil, dried mushrooms, chips. Thailand has a unique geographical Surra, (Kuwait). Participation in the ex- Another notable exhibition for position which allows for active partici- hibition preceding the holy for Muslims Ukrainian exporters «Sial China 2015» pation in world trade. Its trade potential month of Ramadan will give good op- will be held in Shanghai (China) in May. and strategic location makes the coun- portunity to conclude delivery contracts, This is a leading event in the industry try the best platform for search for new because particularly in this period large- of food products, alcohol, non-alcoholic markets.

9 PRACTICAL DIALOGUE BETWEEN First National EXPORTERS AND Forum for AUTHORITIES Exports Support

670 participants representing

320 companies – current and potential exporters

20 foreign companies from Poland, Germany, Italy, Hungary,

Latvia, Netherlands and China

120 speakers, including ministers, ambassadors of foreign countries,

people’s deputies, top managers of

multinational companies

The event was covered by more than 90 media representatives

10 First National Forum for Exports Support

11 UCCI: International economic relations

PRACTICAL DIALOGUE BETWEEN EXPORTERS AND AUTHORITIES

In particular, during the first two nian exports which had accumulated months of this year the volume of our and deepened during recent years as Increasing exports from Ukraine exports to the EU was one-third lower well as realization of the need to find to the European countries – this optimal ways of urgently solving them. is a subject which can be found than for the same period of 2014. Al- Central and local authorities, a number in almost every public speech though almost a year has passed since of the Ukrainian leaders. Еvery the EU unilaterally decided not to im- of international organizations, leading high official actively proclaims pose duties for the Ukrainian products, Ukrainian and international financial his or her readiness to support our companies are in no hurry to enter and banking institutions, consulting and help domestic producers the European market. Experts see the companies, industrial enterprises-ex- in reaching to foreign markets. reasons for such decline of exports in porters participated as co-organizers of However, the State Statistics the absence of proper government sup- the Forum. Service, in contrast to the data port. In their view, the most important is- Given its comprehensive and di- for the first half of the last year, sues today are the need for repayment versified nature, the event had consid- for latest several consecutive erable resonance both in Ukraine and months publishes figures which of VAT in money form and for providing - show a decrease of volume of credits for exports of goods other than abroad. This was confirmed by par the Ukrainian exports to Europe. commodities. The Ukrainian companies ticipation in it of more than 670 repre- should also become competitive. For- sentatives from nearly 320 companies, eign diplomats are also confident that large, medium and small businesses, the State should more actively support companies with foreign capital, as well businesses which are willing to work ac- as companies from Germany, Poland, cording to the European standards. To Hungary, Latvia, Italy, the Netherlands, understand the causes of these prob- the Baltic States, Belarus, Kazakhstan, lems and, finally, to develop a joint plan China and others. There were more of action for export promotion in crisis than 90 accredited media representa- conditions – these were the main tasks tives. of two-day active discussions during the More than 120 speakers participat- First National Forum for Exports Sup- ed in the discussions of a wide range of port which took place at the Ukrainian issues – from state support of national Chamber of Commerce and Industry. exports and improvement of the busi- The idea of the event was generated by ness environment in Ukraine, financial the Ukrainian Chambers of Commerce and credit mechanisms to promote and Industry jointly with the Council exports – to modernization of infra- of Entrepreneurs under the Cabinet structure and industry in line with in- of Ministers of Ukraine, the American ternational standards, diversification of Chamber of Commerce in Ukraine, the the geography of exports, overcoming Ukrainian Union of Industrialists and technical and other trade barriers block- Entrepreneurs at the end of 2014 due ing the way of Ukrainian goods to the to full understanding of the whole spec- world markets. Among them – top man- trum of problems in the sphere of Ukrai- agers of leading Ukrainian and foreign

12 UCCI: International economic relations companies, investment and other funds The most important prove that the Government has political engaged in financial and technical as- quotes from will to abolish unnecessary obstacles sistance, of international and domestic Forum’s participants to doing business. Thus, in the process financial and banking institutions, insur- presentations of deregulation on the initiative of our ance companies, export credit agencies office expert scientific support of con- from Hungary, Poland, Czech Republic, tracts for use of natural resources was Germany, Italy, France, China, Kazakh- abolished. Nearly one billion hryvnas a stan, diplomats of foreign countries and The aim – to identify year was wasted by companies for this representatives of the European Com- the ways to support unnecessary service. mission to Ukraine and other interna- exporters Now the State Regulatory Service tional organizations. will provide monthly reports on the pro- During the Forum a gala session, cess of deregulation. Strict control will a plenary session, four panel discus- facilitate intensive implementation of sions and three round tables were held. reforms. Also, this control will not bring In particular, the gala session named extra costs to the state budget. «Support to national exports - a joint We are open to dialogue and look task of the business and the Govern- Gennadiy Chyzhykov, forward to the initiative of entrepre- ment» and the plenary session «Do- UCCI President: neurs. We invite you to control together ing Business in Ukraine: what reforms – Our main objective is to dis- the implementation of the deregulation should be carried out to support domes- cuss and identify the ways to support plan. Together we can change the busi- tic exporters and attract investments» domestic exporters in the promotion ness environment for the better, leave were attended by heads of central exec- of the Ukrainian goods and services billions of hryvnas in businesses. utive authorities of Ukraine, chairmen of to the markets of the EU, China, the the committees of the Verkhovna Rada Middle and Near East, North Africa and of Ukraine (on the Committees Industri- to other countries. We need to expand al Policy and Entrepreneurship and on Discussions at this level of the exports of services Tax and Customs Policy), heads of for- thorniest issues which are being faced eign diplomatic missions (ambassadors by the exporting producers create new of the European Union, China, USA), opportunities for further implementation heads of major business associations of measures to diversify the Ukrainian (the American Chamber of Commerce exports, to attract foreign investments in Ukraine, the Council of Entrepre- to Ukraine and provide practical as- neurs under the Cabinet of Ministers of sistance to SMEs in their export and Natalia Mykolskaya, Ukraine, the Ukrainian Union of Indus- import operations. Deputy Minister of Economic trialists and Entrepreneurs, the Ukraini- We heard a lot of opinions and Development and Trade of an CCI), international experts, heads of suggestions on ways to expand ex- Ukraine: large Ukrainian companies – producers port opportunities and to support the – The Ministry can promise you and exporters. Ukrainian exporters. They will be sum- to work according to the following Today the Ukrainian exporters are marized by the UCCI and, if necessary, principles. First, we plan to use all concerned over a wide range of issues submitted for consideration to the Gov- mechanisms available in our arsenal related to the promotion of products and ernment and relevant agencies. to effectively promote exports, defend services to the markets of foreign coun- the Ukrainian exporters in foreign mar- tries, especially to the EU. They are wor- kets. Second, we promise and call to ried because of the need to overcome Deregulation will save work for the benefit of priority sectors technical barriers, the need of modern- billions of hryvnas of industries rather than for the benefit ization and technical re-equipment of of individual companies. It is done this enterprises in accordance with the EU way around the world, where industrial standards, getting certificates of compli- associations have a very important ance, licensing of products, creation of voice and determine trade policy. We an export credit agency in Ukraine, of will work not only with large but also an institute of authorized economic op- with medium and small businesses. erators, etc. Therefore, implementation Because the future belongs to SMEs. of proposals and legislative initiatives, Ksenia Liapina, Chairperson The increased focus on exports of worked out during the event, along with of the State Regulatory Service services will be is an important trend. introduction of a full and comprehen- of Ukraine: In 2014 they accounted for only 17% sive free trade area with the EU will be – Cancellation of excessive per- of total Ukrainian exports. Services of instrumental in increasing the export mits and licenses helped entrepreneurs the IT industry, for example – only 2%! potential of Ukraine and increasing of of Ukraine to save millions of hryvnas. We believe exports of services should exports of domestic goods. The results of the first quarter of 2015 reach 25%, and ideally – 30% of the

13 UCCI: International economic relations total volume, as in other developed The tax system should Ukraine has the potential countries. Of course, we need to de- encourage businesses to and the possibilities velop infrastructure, improve business pay taxes climate so that these businesses did not have to make transactions through offshore companies. As you know, overseas there is a strong policy of protectionism benefiting local producers, and Ukraine should also protect its domestic producers and create a busi- Olena MAKEYEVA, Deputy Geoffrey R. Pyatt, ness climate in which we will advocate Minister of Finance of Ukraine: Ambassador Extraordinary and – Thanks to a very effective idea and lobby for the trade interests of our Plenipotentiary of the USA to to establish the a National Council of country. We are open for a dialogue Ukraine: – It is a very unique period in the with business and industrial associa- Reforms we finally created a united team which will work on elaboration Ukrainian economy in terms of gov- tions, with the Ukrainian Chamber of of changes in the tax system, which ernmental reforms, growth of transpar- Commerce and Industry. are expected by business. The team ency, rule of law, progress in the fight is composed of representatives of against corruption, which has a nega- both the Government, the Parliament tive impact on trade and economic Low costs increased as well as of business circles – thus, activity. the advantages of the the representation of interests there is There are few countries which are Ukrainian products balanced. Naturally, 20 people can not so well located geographically. But the write all reforms. So we want to talk level of productivity in Ukraine is much and build partne lower than in other countries. You have rships with business. the potential to produce high-quality goods and create world-class companies, but you need a change of strat- Ukraine – a corridor between East and West egy. It is important to have an effective Oleksiy Pavlenko, Minister of state policy to promote exports and Agrarian Policy of Ukraine: to help industries with loans, through – Agricultural goods constitute diplomatic channels, to discover and 37% of the total exports of Ukraine. develop new markets. Thus I welcome The year 2014 demonstrated that the the steps in this direction which the agricultural sector is the engine that UCCI is making today. moves our economy forward. Exports Look at Poland: you can see how of agricultural products to the Euro- a radical economic reform could lead pean Union last year amounted to 4,8 Zhang Xiyun, Ambassador to major changes in the country, to billion US dollars, with growth of 6%. Extraordinary and improvement of living standards. The Exports to Asia and the Middle East, Plenipotentiary of China to only and most important obstacle in including China and Saudi Arabia, Ukraine: – China greatly appreciates bi- Ukraine for economic growth is cor- reached 6,6 billion US dollars, indicat- lateral business ties with Ukraine and ruption. ing a growth of 9%. Thus we see that considers it to be a reliable partner. the fall of exports to the countries – The development of friendship be- members of the Customs Union made The EU will automatically tween our countries is the policy of the us very actively seek new foreign help to reach other Chinese government. We are ready markets, and the Ukrainian products markets to assist Ukraine in its efforts for stabi- began to prove to the world its quality, in particular, the fact that it is produced lization. Cooperation in various fields between China and Ukraine, which without GMOs. In addition, along with last year had a period of stagnation, is a number of other existing advan- now characterized by the tendency of tages, currently the Ukrainian products rapid recovery. We are looking for new have lower production costs due to an projects. China will continue to remain almost threefold depreciation of the the second largest trade partner of hryvnia. Ukraine. In addition, our bilateral trade Ian TOMBINSKYY, and economic cooperation is now Head of the EU Delegation in being transferred from simple trade to Ukraine: – We in the EU are very interest- implementation of joint projects in the areas of energy production, agricul- ed to see Ukraine standing firmly on its ture, finance and high technologies.

14 UCCI: International economic relations

feet and the Ukrainian business work- business forum in Cairo this autumn. jobs, investments and the amount of ing well. It will soon be a year since The Embassy of Ukraine is occupied taxes should be on the main board the EU unilaterally abolished all duties with its organization in collaboration not only of the Parliament, the Prime on export of the Ukrainian goods to the with the Ukrainian CCI. We will wel- Minister and the President but of all European market. Such asymmetric come all interested Ukrainian busi- senior officials of the State, because decision was made in order to help nesspeople, as well as representatives these are the priorities which would your businesses to accumulate first of industrial and agricultural compa- enable the country to get rid of poverty capital. nies, whose participation in the event and provide decent livelihood for its The European market is quite will help open a new page in trade and population. specific. This is the market of the larg- economic cooperation between our The State should use all pos- est global regulator. From financial countries. sible and impossible tools to stimulate point of view it is the largest in the large-scale export growth, but its struc- world. It has its own principles. In par- There are good ture is also important. We should not ticular, the dominance of the consumer arguments to create export raw materials. We now export over the producer. It provides great export-credit agency mainly round timber, logs rather than opportunities to SMEs because these wooden products, furniture, paper. We enterprises are the most reactive, they export metal or even scrap metal but respond fast to market changes and not machines or tools which we then to changes in consumer sentiments. buy in other countries. We export grain Ukraine needs to take into account this but not products of its deep process- approach. ing. Even in the field of IT, which is On the EU side, we try to pre- Thomas Baum, Partner of considered to be high-tech, we are an pare Ukrainian partners for January PricewaterhouseCoopers, appendage to other countries because 1, 2016, when the comprehensive co-chairman of the Export- we export services of outsourcing, free trade area between the EU and credit agency of Germany rather than develop finished products Ukraine starts working. In this direction on underwriting and risk and sell intellectual property. there is still much to be done. This is management particularly true of access for busi- − There is not enough insurance It is time to encourage nesses of information on all available capacity in the market and there is not the flow of investments services and credits. The European enough banking capacity in the market to the processing export- Bank opens credit lines for small and to promote risky transactions, riskier oriented industries medium businesses and we, as the transactions to riskier markets. You EU Delegation, are doing everything have institutions that do already sup- we can in order to provide such ac- port Ukrainian exporters. This makes cess and lower barriers. the case for extended cooperation to set up an export credit agency. This Time to open a new is why we suggest the government to chapter in trade between approach in a cooperative way, build- Ukraine and Egypt ing something new by taking in other Roman NASIROV, Chairman of participants, who are already here. the Committee of the erkhovna Gennadii Latii, Ambassador of Rada of Ukraine on Taxation Ukraine in the Arab Republic It is necessary to and Customs Policy: of Egypt: stimulate large-scale – Today in Ukraine we still have export growth a number of unsolved issues, namely, – The Egyptian capital, having public financial mechanisms to sup- 20 million citizens, is a regional centre port exports, especially export credit and gates to the African continent. support, which are not regulated in the This is why I consider it my foremost legislature. In addition, it is the duty of task to contribute to the highest pos- the Ministry of the Economic Develop- sible extent to the productive dialogue ment and Trade and the Ministry of between Ukrainian and Egyptian busi- Victor GALASIUK, Chairman Foreign Affairs of Ukraine to create ness circles. In my turn, I expect to get of the Committee of the an extensive system of representa- real offers, advice and active actions. Verkhovna Rada of Ukraine tion of exporters abroad, of providing I hope that 2015 will become a time of on Industrial Policy and them with information and consultancy rethinking our prospects on the Egyp- Entrepreneurship: support. It is very important to encour- tian market. – I am confident that such indica- age the flow of investments to the One of the productive initiatives is tors as volume of export, number of processing export-oriented sectors the offer to hold a Ukrainian-Egyptian

15 UCCI: International economic relations of the economy. We need to develop We need to amend some other Ministry of Economic Development of public-private partnerships in innova- laws, including the Law of Ukraine Ukraine). tive sectors, simplify customs and «On Customs Tariffs of Ukraine» in Also we have the plans to partici- logistics procedures for exporting the terms of cancellation of import duties pate in the work of the Government’s goods and to remove other administra- on machinery and equipment imported and the Parliament’s expert groups tive obstacles. into the customs territory of Ukraine created for developing the concept of for modernization of production facili- reforming the customs bodies, as well It is necessary to ties as well as duties on raw materials as to elaborate recommendations for define the procedure which are not produced in Ukraine. businesses, namely, regarding proof of interaction of It is necessary to make changes of origin of goods, permits for tempo- regulatory and customs to the Customs Code of Ukraine as rary export, including export to certain authorities to unconditional release of imported regions and Anti-Terrorist Operation goods in free circulation on the de- zone, etc. clared value and more effective use However, the current priority for of the post-audit tools as well as im- us is the organization of export sup- provement the electronic declaration. port centers throughout Ukraine using A very topical issue is the abolition the facilities of the regional Chambers of the 90-day period for payments in of Commerce and Industry. These export / import of goods transactions in centers are to become service plat- Leonid KOZACHENKO, accordance with the Resolution of the forms for exporters, where each of Chairman of the Council of Board of the National Bank of Ukraine. them would receive the most compre- Entrepreneurs under the It is also necessary to return to regula- hensive and effective assistance to Cabinet of tions of payments in export / import of promote their goods, works or services Ministers of Ukraine: goods transactions as provided by the to markets in foreign countries. In – To improve the business envi- Law of Ukraine №185/94-VR dated addition, these centers would provide ronment in Ukraine in case of signifi- 23 September 1994 «On the Order of opportunities for timely information of cant destabilization of the trade bal- Payments in Foreign Currency» and to businesses about new conditions of ance it is necessary, first of all, to ac- increase terms for return of foreign ex- export activity, for participation in spe- tively use non-tariff regulations, which change earnings from 90 to 180 days. cial events aimed at their training, for are consistent with the WTO rules, discussions and comprehensive analy- including quality control, security, com- A Centre of Export sis of foreign trade issues. Also, these pliance of imported goods with phytos- Support – a platform for centers are expected to promote the anitary and veterinary standards. effective assistance to establishment within the system of the The purpose of the draft Law of exporters Ukrainian CCI of modern mechanisms Ukraine «On Amendments to Certain for the provision of services, creation Legislative Acts of Ukraine on Reduc- of a commercial registry of exporters tion of the Number of Documents of Ukraine. Required for Customs Clearance» is to cut the number of such documents It is too early to to 3-4 mandatory ones which are to speak seriously about be submitted for passing administra- Ukrainian pork export to tive procedures during import/export Sergey SVYSTIL, Ukrainian CCI Europe operations. These procedures would Vice President: be carried out through the introduction – One of the main objectives of of the concept of «a single window», the Ukrainian Chamber of Commerce which would assure cooperation be- and Industry is creation of appropriate tween the customs authorities and the conditions for doing business, promo- oversight bodies at border crossing tion of comprehensive development points during customs clearance, as of scientific, technological and trade well as cancelling duplicate functions relations between the Ukrainian and Arthur LOSA, and requirements for the use of paper foreign entrepreneurs. President of the Association documents for the purpose of crossing Today the Chamber is working on of Pig Producers of Ukraine: the border of Ukraine and passing cus- projects of implementation and verifi- – Today our country produces toms and related controls; cancellation cation of electronic certificates of origin each year more than 760 thousand of additional import duties; ensuring of goods, introduction of a single infor- tons of pork. This amount does not the timely reimbursement of VAT for mation system for their issue (together satisfy domestic demand, given the exported products, etc. with the State Fiscal Service and the fact that the potential of the internal

16 UCCI: International economic relations

market, according to our estimates, must be established on the basis of reaches 1 million 300 thousand tons. civil society so that we could defend We might have export potential of 300- our own interests. It’s time for you, 400 thousand tons, which in the future exporters, to send a clear signal to the should be developed. authorities. We believe that markets of East- Budget support to exports in ern Asian region have immense oppor- Ukraine is virtually absent. There are tunities. Japan is the largest importer oil. Forecasts for this year promise the some scant funds for bilateral trade of pork in the world. It is followed by production of more than 5 million tons commissions, for support of exhibitions China, South Korea, Philippines and of oil. Why this growth is there? First of and of a small staff of sales represen- so on. In addition, we are interested all, there is demand. Export orientation tatives of Ukraine abroad, but this is in supplying products to the markets is the main advantage of our industry. not enough. I propose that one percent which are located closer to us. They Ukraine consumes only about of funds received from exports, or are the CIS countries, including Mol- 450 thousand tons of oil. 85% of Ukrai- from the tax which the Government dova and Georgia. nian oil is exported to 109 countries of collected from these exports, should As for the EU, for the pork produc- the world. go to measures to support it. For ex- tion industry access to these markets We are able to process any oil ample, resources are needed to create is a ticket to a major league. The EU crops. Unfortunately, so far we process export-import insurance agencies. is the second in the world after China mainly sunflower seeds (90%) and Currently, the volume of export to major producer of pork. It exports we produce about one million tons of Russia fell, but it is critically important more than 2 million tons of pork per soybeans. All rape seeds are export- for many exporters. So, if the govern- year, and imports only a tiny amount – ed. The urgent task of the agricultural ment accepts responsibility for taking 15-20 thousand tons. Thus it is still too sector is to process raw materials and certain steps to stop these exports, early to talk seriously about exporting to create finished product with high exporters who delivered goods to Ukrainian pork to the EU countries. added value. That is why our country, the Russian Federation are entitled Moreover, given the protectionist poli- so as not to be a raw materials ap- to compensation which also must be cies of the EU which provides strong pendage and to become the world’s provided for in the budget. support for local markets, it is quite food powerhouse, should create tech- difficult to enter them. nical conditions for the processing of Now we notice a weak but the raw materials in Ukraine. Most compa- dynamic growth of export of Ukrainian nies are ready for this. Mining and metallurgical pork but, unfortunately, the volumes industry should work are very low – 10-15 thousand tons. for the internal market, But we positively perceive all moves Budget support of export but so far everything is of our businesses toward European in the country going for export countries as this teaches discipline, is virtually absent because the EU market is the most demanding and hard. Given the an- nual growth in production and con- sumption of these products in the world, there are potentially possibilities to compete for export quotas. But, of course, this is the perspective for the Yuri Ryzhenkov, LLC year 2025. Alexander CHALIY, President «Metinvest Holding» Director of «Grant Thornton Ukraine» General: company: Ukraine is almost the only country At the time - creating – During all years of Ukraine’s in the world where the steel industry technical conditions of independence more than 60% of its makes 90% of products for export, processing raw materials GDP has been formed by exports. The instead of working for the internal country lives thanks to the exporters market. High-tech services and equip- Stepan Kapshuk, President and through them it has a chance to ment – this is what our country should of the «Ukroliyaprom» become a European state. Until 2005 export. Association: we had always had a positive bal- To stabilize the situation in the – 60 percent of sunflower oil in ance of trade. Then importers came to domestic mining and metallurgical the world is made in Ukraine. Our power. complex it is important to address the main competitors – Russia and Ar- We need a unified nationwide following objectives: to bring the Ukrai- gentina. Along with sunflower oil, we association of exporters which will nian construction standards in line with also produce rapeseed and soybean include all industry associations. It the standards of the European Union

17 UCCI: International economic relations and the United States; to introduce month, which negatively affects wish state order for construction of bridges, of foreigners to travel to our country. roads, social housing, modernization of railway and natural gas transmis- Exporting is a marathon sion systems; to simplify bureaucratic procedures which will be instrumental P.S. to support the internal market; to introduce a transparent and understand- able tax policy. It is also important to Following the event, the provide state support in protecting the interests of the Ukrainian mining and Martin TIKNUS, Partner Organizing Committee metallurgical complex overseas. «GatewayBaltic» company was authorized to compile (Latvia): – One has to understand that suggestions concerning What should be done to exporting is not a sprint, exporting is a revive investment from marathon. The process of its growth is specific aspects of support China? never fast. This is related to technical certificates, to production, to every- and promotion of national thing that is connected to packaging, etc. We do not sell goods to coun- exports, which have been tries, moreover, we do not sell them to companies. We sell a product to a discussed, and to send them particular buyer. It is necessary to go to the participants of the Elena PLAKHOVA, the directly to the desired market, to po- Corum Group Corporate tential partners and sit with them at the Forum, as well as to the Communications Director: negotiations table. And to find out and solve all technical issues there. This is President of Ukraine, the – Lately we talk a lot about the most effective way. Ukrainian-Chinese trade and eco- Prime Minister of Ukraine, nomic relations. What do we need to attract foreign investments, especially We need aid from the the Committees of the from China, and to increase the export State Verkhovna Rada of Ukraine. potential of the country? Ukraine needs political and economic stabilization so that investors could feel safe here. The government It was also decided that on must guarantee foreign investors laws and regulations with long-term the basis of these proposals perspective (for example, preferential system for foreign investments) and Serhiy Bloschanevich, PJSC the Public Expert Council extension of the agreement on bilat- «Obolon», Chairman of the will prepare within 60 days, eral currency exchange (swap) which Supervisory Board: would allow Ukrainian and Chinese in cooperation with the entrepreneurs to use hryvna and yuan – At present, after some losses in in their operations as well as publica- the domestic market and the market of central executive bodies tion by the NBU of the regulations for the Russian Federation, the Ukrainian the use of this instrument. manufacturers are trying to compen- and business associations, It is necessary to adopt a law sate for these losses by getting ac- on free movement of the Chinese cess to markets of other countries. In a comprehensive action businessmen who have European this work we really need support from visa through the territory of Ukraine the State. We would like to get some plan (roadmap) for support which would make the country more specific forms of assistance which of Ukrainian exports. attractive to tourists and investors. It are quite common in the international is also necessary to improve issuance practice, such as information support of residence permits for the Chinese for exports, marketing research of citizens. At present they are issued for relevant markets, holding exhibitions in one year only, and collection of docu- Ukraine which could be of importance ments to get new ones takes about a to potential importers.

18 UCCI: International economic relations

19 Law&business

OLGA GURENKO : «Ukrainian lawyer looks like

a gladiator It is so sad to acknowledge that in our century of new technologies and old mistakes the fate of our country does not depend on the constantly entering changing personalities in the government, regular IMF credit and not even on the peaceful sky over our heads. Our new future is being created by the people – real professionals who, irrespective of anything, keep their faith in battle Ukraine, overcome difficulties and spare no efforts to gain success. practicall y Your company is active in armless» Olga Gurenko, Director of cooperation with European and international institutions. What the Ukrainian Law Compa- kind of experience could be ny INCOLANCE, is the kind useful for Ukraine to learn from of professional who proves foreign partners? its patriotism to her country – I believe we are not standing by daily work and diligence lower than foreign companies business wise and in some cases it is just aimed at raising the image the other way round – we are better. of Ukraine abroad. Today The thing is that in our daily work we often encounter a lot of difficulties in her exclusive interview and problems which are not inherent to BH she told us about the to other countries but which are more difficulties of operation in than often available in Ukraine. Imag- ine two gladiators: one is armed with the Ukrainian juridical field. a razor-sharp sword to fight, while the other – just with a wooden stick. Now, make your guess: who is a Ukrainian lawyer out of these two? The answer is obvious. This is the reason we are stron- ger in many ways. We are able to win even in the most unfavourable situations.

20 tion exists. But at the same time – What were the difficul- The other stumbling block – ex- hope exists that the knowledge ties in the Ukrainian legislation ecution (enforcement) of court de- gained we would be able to apply and court legal procedures you cisions. Our court is an initial stage in the Ukrainian justice. Thanks came across in your practice? for gaining the rule of law. When a court rules a positive decision that to discipline and laboriousness – The answer to this ques- does not mean the end of hard- our views and hopes will one day tion will explain why the Ukrainian ships as another problem of exe- have a favuorable effect on the gladiator is so poorly protected cuting this court decision stands on Ukrainian reality – the realities and attacks his enemy with his the way. It is due to the inadequate of the country we were born and bare hands. operation of the State Enforcement grown up. The problem lies in the dif- Service of Ukraine that our country ficulties caused by the imperfect is already ranking position five in – Thinking wider than only legislation of our country. the subject of justice, what is One of the main your vision of the Ukraine de- problems is the dual velopment? nature of our legisla- It is due to the inadequate – First of all we have to solve tion. Since the Gov- the main problems in legislation ernment has been operation of the State and court legal practice by revis- adopting laws which ing the controversial legislation contradict to each Enforcement Service of and, of course, start sticking to other situations arise alfa&omega of law. As for the en- Ukraine that our country when everybody al- forcement of court decisions, we lows himself to use it is already ranking posi- can use the experience of France, according to his own Belgium, Netherlands and other understanding. Nat- tion five in europe as to countries where this function is urally, he is always in executed by private law enforce- a beneficial position. the number of claims to ment officers. In fact, our country has a great Another prob- Strasbourg Court lem, arising from potential in qualified personnel. It the mentality and is a common truth that Ukrainian psychology, – «pre- talented people in IT-technolo- sumption of inno- gies, justice, management, sci- cence» which is the ence have a tremendous success cornerstone prin- in international companies. It is ciple of the criminal the unfavuorable terms of work law in the developed countries. Europe as to the number of claims and life in Ukraine which make There exist such a law in Ukraine to Strasbourg Court. them leave Ukraine. It is the intel- as well, but the reality is dramati- lectuals and talented people we cally opposite to the idea. In fact, have to depend on. And Ukraine our court practice is based on the – A deep crisis, our country must create adequate conditions principle to prove the innocence of is going through forces a lot for them. of professionals and experts the accused person, but it should It is also necessary to create be by accusation that the court to leave Ukraine in search adequate conditions to bring back must prove his guilt. In simple f o r s t a b i l i t y a n d h i g h w a g e s . to active work the talented people words, the man is initially treated Your employees undergone - - who are able to finalize the re as guilty, and his barrister is do- training and boast of vast expe forms and pull the country out of ing his best during the whole court rience of work abroad. Do they the regressive mode, to advance process to prove the opposite. In feel tempted to follow such an it to a higher level in every aspect, countries where this principle is example? help make Ukraine a developed solid the prosecution side brings – Indeed, INCOLANCE ex- progressive state, a prominent accusations during the whole perts studied abroad and have member of the global community. court process while the defending certain experience of work there. side just refutes them. Frankly speaking, such a tempta-

21 business & Tourism

THE PHENOMENON OF CHYGYRYN The area around the town of Chygyryn is the centerpoint of Ukraine. For all one's lifetime, it calls one to come here…

the Cold Dene») lived here over The province of Cherkasy is The province of Cherkasy was the place where Ukraine as 1918 to 1922. not only the geographical a state entity was born. It was ex- The Chygyryn National Park center of Ukraine but actly here, in Chygyryn that the of Historical and Cultural Heritage also its spiritual core with first capital of the Ukrainian Hetm- was formed in the Chygyryn Dis- abundant landscapes, anate under the prominent military trict with the total land area of over very fertile black soils, leader Bogdan Chmielnicki was one thousand hectares including established. Ambassadors from the town of Chygyryn and the vil- and the unique historical many countries of Europe used lages of Subotiv, Stetsivka, and and cultural heritage. to come here on their duties. The Medvedivka as well as the Kholod- first groups of the Ukrainian Cos- ny Yar, a stow with oak and ash sacks were formed here and the trees, and the Atamansky Park. numerous Cossack uprisings as Chygyryn, a small town with a well as the national liberation war bit of unusual name, stands on the in the middle of the XVIIth century banks of the Tiasmin River. The began here, too. This region also name of the town reproduces the served as the cradle of the large- whisper of wind, and the patter of scale national uprising known as hoofs, and the clang of metal, and the Koliyivshchina in the XVIIIth the noise of grass, and the cry of century, and the famous Republic young girls, and the roar of thun- of Kholodny Yar («the Republic of der, and the lament of mothers,

22 and the words of victory, and the to the period of the Kievan Rus. It Also in Subotiv, there is a laugh of friends. is also interesting to visit the Bog- museum of history founded in There is the Zamkova Gora dan Chmielnicki Museum at the 1960 at the premises of the St. («the Castle Hill») in the center premises of the former district ad- Elias Church as the first attempt of Chygyryn. It is a unique land- ministration office in order to learn to establish a memorial museum mark of landscape design art about the military, governmental, of Bogdan Chmielnitski. The mu- with an 18-meter-high monument and foreign-policy activities of the seum now combines the St. Elias to Hetman Bogdan Chmielnicki, famous Hetman and about the his- Church (as a XVIIth century archi- and a stone cross established in tory of the Hetman's Capital. Final- tectural landmark of the national the year 1912 to honor the he- ly, tourists will be interested to visit importance); and the land area of roes who fought against the Turk- the recently restored St. Peter and the Chmielmicki family mansion ish and Polish invaders, and the St. Paul Church in the town. (several layers of historical soil); Petro Doroshenko Bastion, which The villages being part of the and the two «Ukrainian Country served as the core fortification for Chygyryn National Park of His- House» mansions dating back to the town. Numerous tourists go torical and Cultural Heritage are the late XIXth and early XXth cen- to the top of the hill to admire the unique and off the beaten track, tury, with the interiors of a pottery beautiful scenery of Chygyryn and and each of them has its own eth- shop having been reproduced in the Tiasmin River. nographical specifics. one of them; and the «Three Wa- The fortress was constructed Subotiv was the official resi- ter Wells» terrain landmark; and in accordance with the old Italian dence of the Chmielnicki family. the ancient town settlement of fortification standards and was Here, Bogdan Chmielnicki ordered the Culture of Chornolissya (the considered one of the most pro- to build the St. Elias Church in the «Broad-Leaved Forest Culture») tected and unassailable strong- early Ukrainian Baroque style and dating back to the 9th century B.C. holds in Ukraine back then. It provided funds for its construc- The museum has a great num- served as the core of the resis- tion in 1653, and the church has ber of exhibits and relics as well as tance during the Turkish sieges survived till nowadays. Accord- interesting collections of ancient when 15000 Cossacks success- ing to the chronicles, the church weapons, unique photographs and fully fought against the Turkish became the family vault for the documents from the past. troops, 220000 in number. Chmielmickis in 1657. The legend The Three Water Wells are At his official residence in the says that Bogdan Chmielicki was widely recognized as an historic town, Hetman Bogdan Chmiel- buried on the right of the altar in local landmark in Subotiv to com- nitski used to accept ambassadors the church. However, the archeo- memorate the friendship of three from many states of Europe, in- logical excavations in the 1970's brotherly nations: the Russians, cluding Sweden, Poland, Russia, revealed that the soil in the said the Ukrainians, and the Belaru- Venice, and Turkey. Chygyryn was place had been dug over for many sians. Bogdan Chmielnitski or- also the Hetman's headquarters times but neither the tomb nor the dered to dig these water wells in at the time of the Ukrainian Peo- remains of the Hetman were found the honor of the valiant Cossacks ple's Liberation War in the midst there. of Zaporizhia who died in battles. of the XVIIth century. Recently, In the year 1954, architect I. According to the local beliefs, the Hetman's Residence has been Shmulson designed a symbolical three Cossacks dug the three wa- restored in accordance with the granitic tombstone, which was set ter wells at the place where there specific architectural features of for Bogdan Chmielicki in the church, was a wellspring with the water the Ukrainian Baroque style of the while in 1978 the major repairs were used by a local old man to heal the XVIIth century. It now consists of completed under the guidance of ar- wounded warriors. This is exactly the Hetman's Palace, the House chitect S.Kilesso, whereby the gal- why a Cossack hospital stood near of Chmielnicki's parents, the mili- lery was dismounted. this wellspring for a long time and tary chancellery, and the treasury The church itself has been by many wounded warriors were giv- office. now restored in its original form. en medical treatment there. It is worth seeing the Chygyryn The distinctive feature of this land- The village of Stetsivka is fa- Museum of Archeology which re- mark is that the St. Elias Church mous for the Tourism and Ethnog- sides at one of the oldest buildings and Bogdan Chmielnitski are both raphy Center of Kozatsky Khutir in the town and shows the exhibits depicted on the Ukrainian five- (the «Cossack Mansion») with the dating back to the stone age and hryvnia banknote. Ukraine's only museum of mill-

23 house industry, its total ground Pond where the Haidamakas used area being nearly 9 hectares. This to sanctify their weapons. A lot of is the precise place where wind- knives, smoking pipes, and other mills stood in the depths of un- items were found at the bottom of recorded time. The St. Nicholas the pond in 1968. Church of the XVIIIth century is As the road runs from Medve- the central exhibit of the museum divka to Melnyk, there is «Dzurka- facility. lo», one of the strongest well- In the center of Medvedivka- springs of the Kholodny Yar area village, there is a museum of local in terms of the quantity of water lore which is an integral part of the per time unit. This is a thiocya- Kholodny Yar branch of the Chygy- nogenic source of curative water ryn National Park of Historical and with considerable content of sil- Cultural Heritage. The Assumption ver, wonderful biological proper- Day Church overtops proudly near ties, and purity. Everyone who the museum. The church was built visited the Kholodny Yar at least in 1864, sponsored by I. Funduk- once could feel the influence of lei, the civil governor of Kyiv, who the magical force filling one's soul was the owner of this land area with light, joy, and unique feelings. back then. The temple has distinc- One group of scientists attributes tive elements of the modern style the positive energy of this area to and bears the decorative paintings the volcano which was active here made by the locals. two million years ago, and others The village of Medvedivka had trace it back to the meteorite which been the home to Maksym Zal- hit the surface of the Earth and iznyak (Maksym Їeleџniak), one of thus formed the basin nowadays the leaders of the Koliyivshchina named Kholodny Yar. uprising which was one of the larg- The Kholodny Yar is a unique est in the entire history of the Cos- piece of the local nature and the sacks. only place in the country that com- Lots of monasteries were bines cultural, archeological, his- founded in this area after the torical, and botanical landmarks. Christianity was adopted, and the The Kholodny Yar is called «a Kholodny Yar (the «Cold Dene») dene» because of its unusual ter- was used as a shelter by the rain features as a dense forest aris- monks. One of the largest and es in the midst of a broad steppe sky town settlement dating back major shrines is the Motroninsky area of over 6000 hectares. In the to the Scythian time (VIIth to Vth monastery in the village of Melnyk, depths of this forest, the warriors centuries B.C.). The site is listed built in the year 1036 and named led by famous Ukrainian hetmans among the cultural landmarks of after the wife of Myroslav, a mili- found their shelter. The Kholodny international importance. Behind, tary governor who served the local - Yar was for the first time men there is the convocation site which kings of the time. The monastery tioned in the XIVth century and is the place where the Haidamakas now stands on the territory previ- got its current unusual name due and the Cossacks usually gath- ously occupied by a Scythian set- to the legend about Cold Melanka, ered. Prior to the decline and de- tlement of the Ancient Rus epoch. a woman who found her shelter in feat of the insurgency movement According to a legend, there are this area at the time of the Mongol for some time, the Haidamakas many underground passages in invasion. Here, archeologists have Sich (the «special camp of the in- that place. Back in 1918 to 1922, revealed the traces of all archeo- surgents») lived there and a large the monastery was the center of logical cultures, beginning from cauldron hung up on a big oak the Republic of Kholodny Yar («the the farming culture of Trypillia. tree, its clanging was heard over Republic of the Cold Dene») and Amongst the hundreds of the several miles around the place. centerpoint of the Ukrainian insur- landmarks of the Kholodny Yar, This was the system to raise alarm gency against various invaders. every traveler will find something or to call the assembly for the Next to the Motroninsky mon- special for him or herself. For ex- Cossacks and insurgents and for astery, there is the Haidamakas ample, this may be the Motronin-

24 the local people living in the area. created as the result of volcanic lyvaiko, Pavlo Pavluk, Maksym The historical site has now been activity in the ancient time. Їeleџniak, and Taras Shevchenko marked with a memorial sign. There is also an unusual did so. And it was exactly that the At the very center of the Mo- oak tree named in the honor of Haidamakas gave their solemn troninsky monastery, one can see Maksym Їeleџniak in Kholodny Yar. oaths under this oak tree. the now functional Trinity Church, This oak tree has the official age Well, it is anyway not enough to another architectural landmark. of over 1100 years old. It is a real tell long stories about the miracles From under the land sur- patriarch for oak trees and one of in combination of the present with face, wellsprings let out the wa- the oldest trees in Ukraine. Its cir- the past, real things with legends. ter which is extremely delicious cumference is nearly 9 meters, its It’s quite clear, you have to see it. and cold even in hot summer. It altitude is 24 meters while the total If you wish to perceive the is believed that the water has the volume of its wood substance con- spirit of courage, strength, vigor optimum concentration of thiocy- stitutes 37,5 cubic meters. There and patriotism, the sense of fight- anogen and silver, and it’s like the is a legend that this giant oak tree ing for your homeland, you should water comes from one of three has magical properties; everyone come here, you ought to visit the lakes lying under the Kholodny who spends time having rest in Chygyryn area, famous for its glo- Yar, those lakes being a kind of its shade would acquire unlimited rious and mighty history and being artesian water reservoirs of the energy. Such famous people as a great part of our native land his- underground sea of potable water Bogdan Chmielnicki, Severin Na- tory!

25 commercial offers

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26 «Techno Khim Invest» LLC AGROFIRM "POLE" Limited Liability Com- Interested to import cable products: power pany cables, LOCA cables, co-axial cables, control Cherkasy, Post Box #73, Ukraine, 18001 cables, isolated wires and other cable and wire Director : Tomenko Ivan products for atomic and thermal power stations. Tel.: +380 472 64 15 88 Fax: +380 472 64 70 31 04053, 23A, Kudryavska str., Kyiv, Ukraine e-mail: [email protected] 02098, Kyiv, post box 53 (for mail) http://www.agropole.com.ua Director: Mr. Oleksandr Chornyi The company specializes in the production of cere- Tel./fax: +38 044 569 40 85 als – wheat, durum wheat cereals, grain maize, pea ce- e-mail: [email protected] reals, which engaged in production of millet of category «Organic food» and corresponds to European quality standards and its production has been certified according to EU standards. The company invites interested foreign organiza- «KF Intercom» LLC tions to cooperation and is willing to consider all offers of Interested to import wood products: wood potential trading partners from Germany, Austria, Czech wall panelling, saunas Republic, Poland, Netherlands, USA, Hungary etc.

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Ukrainian Chamber of Commerce and Industry e-mail: [email protected] www.ucci.org.ua