Dear Chamber Members, 2010 was a challenging year for the American Chamber of Commerce (Chamber) and our Members as Ukraine’s new leader- ship struggled to effectively address issues within an economy which was dealing with the fallout of the global financial crisis. The Chamber and its Executive team reacted to these changes by quickly adapting to the new reality and provided access, informa- tion, and high level engagement on behalf of our Members to key decision makers, who have the responsibility to develop and manage the process of implementing comprehensive economic reform which is desperately needed to ensure that Ukraine is able to successfully compete in the global market place and attract the much needed domestic and foreign investment. Throughout 2010, the Chamber focused on the strategic priority set by the Board of Directors of increasing Ukraine’s com- petitiveness through the Chamber’s “Partnership for Successfully Competing in the Global Economy”. That initiative sets forth a clear and concise regulatory and legislative reform agenda created in conjunction with the business, expert, NGO and donor community designed to help Ukraine mitigate the negative impact of the financial crisis and position it appropriately to take advantage of global growth trends. This work product was well received by the new political elite and many of the ideas and concepts are reflected in President Yanukovych’s ambitious Economic Reform Agenda that the Chamber is busy helping to execute. A prime example of that high level engagement and the subsequent results was the passage of a comprehensive Tax Code in December of 2009 with substantial input from the business community under the Chamber’s umbrella. The Chamber also focused on strengthening our Policy Team and our Committees and further tapping into the Chamber’s long-stand- ing relationships with key decision makers in order to work on those issues that are of major concern to our Membership. In the same vein, the Chamber further developed numerous segmented Networking events, allowing our Membership to have access to the wealth of experience and opportunities that their fellow Members of the Chamber also bring to the table. The Chamber has focused in further developing a well-rounded offering of benefits and services by being proactive, innovative, and customer-service-oriented. Sincerely, Boris Krasnyansky Chairman of the Board Message From The Chairman Of The Chamber Board Of Directors Dear Chamber Members, The beginning of 2010 was yet another interesting time for the business community in Ukraine as the country’s economy started to recover from the lingering impact of the global financial crisis and a new President was elected leaving the Chamber’s Mem- bership unsure of what the future holds. This uncertainty has raised the importance of the role that the American Chamber of Commerce in Ukraine plays as a “Key to your Success” and a focal point for increasing the competitiveness of the country. The Chamber has been pleased at our ability to engage with the new leadership helping to push forward the important reforms that were stalled in the past. We look back on 2010 as a challenging and productive year for both the Chamber and Ukraine and forward to the upcoming year as many in the business community, including myself, remain optimistic as to what the future holds for the great country in which we live and work. We at the Chamber continue to focus our efforts on ensuring that the organization remains relevant and value-added by be- ing nimble and adjusting to the needs of our Membership as the business, investment, and political landscape changes. We will continue to focus on the future, doing what we can on behalf of our Members, to identify new opportunities, to protect their interests through focused lobbying and advocacy efforts aimed to increase Ukraine’s competitiveness, to provide quality segmented Networking opportunities, as well as, to serve as strong information platform helping all of our Members to succeed. The road ahead will be challenging, but, with the engagement of the Board of Directors, qualified staff of the Chamber and the vast Chamber Membership, we will focus on the future and look forward to revel- ing in the successes of the Chamber and each of our Members. This 2010 Annual report is designed to provide you with a brief snapshot of the major activities and accomplishments of your Chamber over the last year. We look forward to working with our Membership in 2010 and beyond, as we all strive to succeed in this challenging and rewarding environment. Sincerely, Jorge Zukoski President

Message From The President Chamber Administrative Staff ...... 5 Chamber Offi cial Service Providers 2010 ...... 7 The Chamber in Ukraine ...... 16 Chamber Calendar of Events 2010 ...... 18 Chamber Success Stories in 2010 ...... 28 Chamber Innovations in 2010...... 35 Communication Activities ...... 41 Chamber Advocacy and Lobbying Activities ...... 45 Competitiveness Report ...... 56 The Chamber Committees and Working Groups ...... 59 Chamber Networking & Social Activities ...... 93 Chamber Publications ...... 103 Chamber Gourmet Club ...... 107 Membership Discount Card Program ...... 113 New Members 2010 ...... 115 Contents Chamber Administrative Staff Chamber Administrative Staff

PRESIDENT POLICY TEAM

Jorge Zukoski Svitlana Burlaka Policy Officer The American Chamber of Commerce in Ukraine 12 Amosova vul., 15 Floor, Kyiv 03038, Ukraine EVENTS TEAM Olexander Chumak Phone: +380 44 490 5800 | Fax: +380 44 490 5801 Policy Officer [email protected] | www.chamber.ua Victoria Matsak Olena Lukianenko Event Manager Senior Committee Coordinator ADMINISTRATIVE TEAM Olena Arustamova Yaroslava Marusyk Event Coordinator Nadiya Polishchuk Committee Coordinator Administrative & Financial Manager Krystyna Kovalenko Gourmet Club Assistant Nataly Markizka Kateryna Smol Committee Coordinator Chief Accountant Oleksandr Matkovsky Event Assistant Valeria Tsyganenko Olena Potylko Committee Coordinator Accountant Kseniya Alekankina Event Assistant Natalya Plikha Anna Septa Policy Team Assistant HR Coordinator COMMUNICATIONS TEAM Svitlana Oliinyk Administrative Assistant MEMBERSHIP TEAM Olga Lyuta Olena Romanenko Communications Manager Administrative Assistant Alyona Bilokha Tetyana Ostapenko Membership Development Coordinator Andriy Fabrikant Publications Coordinator System Administrator Zena Kleshchar Yaroslav Shevnin Vitalina Ivakhnenko Membership Relations Coordinator Web-content / E-Publications Coordinator Receptionist Svitlana Storozhuk Roman Kravets Volodymyr Poplavets Communications Team Assistant Membership Relations Coordinator Driver Natalya Popova Yuliya Dzikh Victor Ivanchenko Web-content / E-Publications Assistant Membership Programs Coordinator Driver 6 Chamber Offi cial Service Providers 2010 Chamber Offi cial Service Providers 2010

The exclusive Chamber “Official Service Provider” bership ensuring individual approach according to snacks from Kraft Foods Ukraina. Members usu- status is granted to Chamber Member organi- specific areas of interest of the Members. ally have a chance to win some cool prizes at the zations who provide goods and services to the events including the possibility to travel with Ukraine Chamber under special agreements that are on a Astelit LLC (Business Life) has provided laptops International Airlines (UIA) to any destination. The pro-bono basis or at greatly reduced rates. These and smart phones to Chamber employees with ex- Chamber is grateful to KLS Ltd for their continuous goods and / or services are relevant to the success- tensive Internet access. This helps the Chamber support by providing logistical services. ful operation of the Chamber allowing the Chamber Team to ensure timely response to all urgent issues to fulfill the Mission and Vision of the organization that may impact the Membership even if out of of- All Chamber Members are able to share their opin- while providing relevant value added services to the fice. This mobility is enhanced by above-mentioned ion and provide feedback on Chamber events, as Membership. Microsoft solution. well as take a part in Committee Leadership voting by means of Key Survey, a sophisticated data col- In 2010 the Chamber has moved to new state of the MTS (Ukraine Mobile Communications CJSC) lection, data analysis, and data presentation tool by art offices in Horizon Park Business Center. The has contributed greatly to increasing the overall mo- WorldAPP, Inc. smooth relocation and excellent conditions in one bility of the Chamber Team by providing high quality of the best Office Centers in Kyiv (Business Center mobile phone connections. The Chamber is proud to have the privilege to share of the Year 2010 according to Ukrainian Real Estate the latest news with its Membership in partnership with Award) was possible thanks to ISA Prime Devel- Gloablly renowned for their stability and security Credit Interfax-Ukraine news agency. Chamber Mem- opments, the owner and manager of Horizon Park Agricole Corporate and Investment Bank and Cit- bers receive Interfax Morning News on a daily basis in Business Center. ibank, PJSC provides the Chamber with the banking the mailbox as well as a run string on the home page services with the highest level of professionalism. of the Chamber website (www.chamber.ua) that is DenzaWorkspace designed and furnished the constantly updated with breaking news. Chamber’s office which offers our Members and Audit Firm “RSM APiK” diligently reviews the employees modern professional facilities and a Chamber’s Financial Statements and provides valu- Being actively involved into U.S. – Ukraine relations comfortable environment. able advice on book-keeping taking into account and having headquarters in the USA, it is very im- constantly changing national legislation. portant for the Chamber to have secure and timely Golden Telecom (Beeline) continues to provide delivery of documents from Ukraine to U.S. and vice top of the line communications solutions including Two automobiles provided by Euro Leasing and versa. The Chamber also has a need to move docu- telephone lines and Internet channels that ensure NIKO Corporation ensure timely presence of the ments around Ukraine and the Chamber is grateful Chamber’s constant ability to communicate with the Chamber employees at different meetings with to UPS for its reliable assistance in this regards. Members and Partners. Ukrainian government officials, Embassies, NGOs and other partners. The Chamber constantly strives to improve its ser- Microsoft Ukraine, LLC provided and helped to vices and satisfy the changing needs of its Members. deploy a comprehensive systematic solution for the The Chamber organizes many Networking events The 2010 Membership Survey was created and an- Chamber’s IT infrastructure. Microsoft Exchange is for the Membership, where guests enjoy not only alyzed by professionals at the Ukrainian Market- fully integrated with Microsoft SharePoint ensures the friendly atmosphere and useful business con- ing Group® which will help the Chamber to be even effective document turnover and productive meet- nections, but also cold tasty beverages provided more efficient in providing its value added services ing scheduling. Microsoft Dynamics CRM helps the by Coca-Cola Beverages Ukraine Limited and and benefits to its Member Companies and Organi- Chamber to effectively communicate with the Mem- Slavutich, Carlsberg Group, as well as coffee and zation from over 50 nations across the globe. 8 Chamber Offi cial Service Providers 2010

Audit fi rm “RSM APiK” Beeline BUSINESS life — 37/19, Donetska vul., JSC Ukrainian Radiosystems, customized mobile solutions 1 Floor 6, Tulchinskaya vul. Kyiv 03151 Kyiv 04080 Mandarin Plaza, 4, Baseyna vul., 7 Floor Phone: +38 (044) 501-5934 Phone: +38 (044) 393 0100 Kyiv 01004 Fax: +38 (044) 501-5934 Fax: +38 (044) 393 0159 Phone: +38 (044) 233-3131 offi [email protected] www.beeline.ua Fax: +38 (044) 233-3062 http://rsmapik.com.ua www.b2b.beeline.ua [email protected] www.BUSINESSlife.com.ua Audit Company “RSM APiK” was created in July 1993. On October 5, 2009 Altimo and Telenor announced During the period of company’s activity our special- their decision to combine their ownership in OJSC ists have provided audit services to more than 400 VimpelCom and Kyivstar under a new company, companies and 80 banks. RSM APiK is one of the VimpelCom Ltd. The Antimonopoly Committee of leading audit companies on Ukrainian market of au- Ukraine after in-depth study of the telecommunica- dit and consulting services. Since September 2007 tions market announced its final positive decision in our firm has become a member of RSM International respect of the merger. Since that, Kyivstar - mobile Brand for businesses — small and medium enter- network, which is the seventh largest accounting and operator number 1 in Ukraine and Beeline - the larg- prises, and corporations — BUSINESS life provides audit organization in the world. On the one hand this est alternative fixed-line operator started integration. customers with the most up-to-date mobile tele- is acknowledgement of our high professional level on Both companies form business unit «Ukraine» of Vi- communication services, data transfer and innova- the other hand it gives a possibility to cooperate with mpelCom Ltd and provide services of telecommuni- tive offers to optimize business. colleagues from more than 630 offices in 72 countries cation for 24,5 million of customers under “Kyivstar” and to provide support of your business practically in brand. Moreover, the subscribers get additional advantag- any place in the world. The Company’s main areas of es through simple and lucrative BUSINESS PLUS VimpelCom Ltd. consists of telecommunications activity are the provision of various types of audit and loyalty program. BUSINESS life is an Official Mobil- operators providing voice and data services through related services to commercial banks. High rate of ity Provider of the American Chamber of Commerce a range of wireless, fixed and broadband technolo- proficiency of the company and its contribution to the in Ukraine. The longer a business customer uses gies. The VimpelCom Ltd. group is headquartered in development of bank audit methodology have gained BUSINESS life services, the more PLUSES it gets. Amsterdam and has operations in Russia, Ukraine, recognition in business spheres, state institutions, and Accumulated PLUSES can be exchanged for differ- Kazakhstan, Uzbekistan, Tajikistan, Georgia, Arme- in the professional audit community of Ukraine. RSM ent benefits. Among them one can find additional nia, Kyrgyzstan, Vietnam and Cambodia, covering APiK is the only audit company in Ukraine, which has minutes, SMS, MMS, megabytes as well as various territory with a total population of about 345 mil- become a member of Association of Ukrainian Banks. discounts for handsets, restaurants, car rental, elec- lion. VimpelCom Ltd. operating companies provide RSM APiK has lengthy experience of work with large tronic devices and gadgets, household appliances services under the “Beeline” and “Kyivstar” brands. joint-stock companies and state enterprises special- and office equipment, air flights with AeroSvit com- VimpelCom Ltd.’s ADSs are listed on the New York izing in the most important areas of the economy (fuel pany, information and consulting services. Stock Exchange under the symbol “VIP”. and energy complex, technical connection and tele- communication, insurance business, and the like.). We have also developed extensive contacts with 100% foreign-owned companies and banks. 9 Chamber Offi cial Service Providers 2010

Credit Agricole Corporate Citibank, PJSC Coca-Cola Beverages Ukraine Limited and Investment Bank 16G, Dymytrova vul., Kyiv 03150 51st km of St. Petersburg Shose Phone: +38 (044) 490-1000 Velyka Dymerka 23A, Volodymyrska st., Kyiv 01034, Ukraine +38 (044) 490-1030 Brovary district Phone: +38 (044) 490-1400 [email protected] Kyiv region 07442 Fax: +38 (044) 490-1402 http://www.citigroup.com Phone: +38 (044) 490-0707 [email protected] Fax: +38 (044) 490-0701 www.ca-cib.com.ua [email protected] Public Joint Stock Company Citibank is a 100%- www.coca-cola-job.com.ua owned subsidiary of Citigroup, Inc. (headquartered in New York, U.S.A.) which delivers its financial services through Institutional Clients Group, Global Consumer Coca-Cola Beverages Ukraine (CCBU) manufac- Credit Agricole Corporate and Investment Bank was Group and Global Wealth Management. tures and distributes soft drinks, juices, waters, ener- gy drinks, ice teas and coffee under the trademarks back in 1993 the first fully operational Western bank PJSC Citibank was registered by the National Bank of that belong to the Coca-Cola Company. in Ukraine under Credit Lyonnais brand and since Ukraine in May, 1998 and on October 30, 1998 the 2004 under Calyon brand. Bank was granted the package of banking licenses au- CCBU is a member of the Coca-Cola Hellenic Group, 17 years of experience, 4 more years of any other thorizing it to conduct all principal banking operations for serving 550 million people across 28 countries. The western bank in an environment where experience is corporate customers (residents and non-residents). Group is one of the largest bottlers of non-alcoholic beverages in the world. a key, made and still makes Credit Agricole Corporate PJSC Citibank has a dedicated local corporate banking and Investment Bank the foreign bank of reference. and treasury team, which actively co-operates with our CCBU established a representative office in Ukraine Credit Agricole Corporate and Investment Bank: Institutional Clients Group and Treasury specialists to in- in 1992, immediately after the country had gained Three years in a row (2008, 2009, 2010 ) named the troduce innovative products to the Ukrainian Market. independence. Coca-Cola was one of the first in- most trustable bank in Ukraine (The Expert, Ukrai- ternational companies to invest in Ukraine. In the 17 Citi Ukraine offers a range of market-leading Cash nian economic weekly). years since then, Coca-Cola System investments in Management, Trade and Securities products and the country have reached US$ 350 million. №1 bank in terms of cash management. services to our clients delivered via our award winning A leader in Foreign Exchange and local currency Mon- online banking platform “CitiDirect” enabling us to be In 17 years of operation in the Ukrainian market, the ey Market transactions performed for international closer to our clients throughout Ukraine. Coca-Cola system in Ukraine has received numer- ous awards in recognition of its achievements in companies. A leader in M&A transactions servicing. Citi has launched custody services for Ukrainian se- business, product innovation, high-quality produc- Credit Agricole Corporate and Investment Bank be- curities and also Agency & Trust services including on tion and corporate citizenship. The plant was certi- longs to the 160 000-staffed Credit Agricole Group and offshore escrow services. We continue to invest in fied on compliance to international and Ukrainian that ranks 3rd in the world in terms of Total Assets. the development of our products and services and are standards requirements in Quality Management, In Ukraine the Credit Agricole Group also owns a proud to be the bank of choice for many multinational Food Safety Management, Environmental Manage- 200-outlets retail bank - Index Bank,which it pur- companies with offices in Ukraine. ment, Occupational Health & Safety Management. chased in 2006. Index is mostly devoted to retail and PJSC Citibank transfers best corporate practices from SME businesses, whereas Credit Agricole CIB is de- Citi’s global operations into the growing Ukrainian voted to bigger corporations, western and local. business to build a reliable and effective franchise. 10 Chamber Offi cial Service Providers 2010

DenzaWorkspace Euro Leasing Interfax-Ukraine news agency 86B, street Bozhenka, Kyiv 03150, Ukraine 4, Ivana Lepse blvd. 8/5A, Reytarska vul. Phone: +38 (044) 379-3607 +38 (044) 379-3609 Kyiv 03680 Kyiv 01034 Fax: +38 (044) 379-3608 Phone: +38 (044) 490-1087 Phone: +38 (044) 270-6574 E-mail: offi [email protected] Fax: +38 (044) 490-1087 Fax: +38 (044) 270-6575 Web-site: http://www.denza.com.ua E-mail: [email protected] E-mail: [email protected] Website: www.lease.com.ua Website: www.interfax.com.ua

Founded in 2001, DenzaWorkspace is a well-estab- lished Ukrainian company with foreign investments, to- day is quickly enlarging its presence in ergonomic office furniture market segment. The core line of our business is creation of professional corporate environment for our The Interfax-Ukraine News Agency - a company be- clients using the latest products and trends in office en- Euro Leasing provides the fullest range of fleet manage- longing to the international group Interfax Information vironment design. Our many offerings help ensure that ment services and the innovative product Fleet-online in Services - has been a provider of information in the individuals who spend hours each day at work, do so in order to organize efficiently our clients’ fleet activity. Euro political and economic information market of Ukraine maximum comfort and with minimal long-term health Leasing fleet management services help both SMEs since 1992. Over this time, the agency has earned the risks. To achieve this result, we combine products from and big companies stay cost-effective by using progres- reputation of being the most authoritative and com- European leaders in their respective fields such as Her- sive transport solutions. petent supplier of timely and objective information, in man Miller, LD Seating chairs, and PFD System Furniture As the official leasing partner of the American Chamber the format of high-quality and popular news products. ergonomic products. PFD System furniture is a recog- of Commerce, the company aspires to set an example News reports from Ukraine are available to clients in nized market leader in Eastern Europe headquartered for customer service on the Ukrainian leasing market. almost every country of the world through the distribu- in Prague. The company is aggressively expanding in Its employees adhere to principles of proficiency and tion channels of Interfax International. “old” Europe and enlarging its market share in corporate transparency and take an individual approach to every Currently the agency markets more than 45 informa- office environments. Among its clients are recognized customer. world names such as Citibank, ING, Skoda, IBM, Credit tion products on political and economic subjects in Suisse and many others multinational business lead- three languages (Ukrainian, Russian and English). ers. We create working environments that inspire and Interfax-Ukraine is an Official Service Provider of the foster productivity. We work with our clients to align their American Chamber of Commerce in Ukraine. workspaces with business objectives// to adapt their environment to accommodate change. We provide a Please note that all American Chamber Members are comprehensive portfolio of services, from relocation granted with special discounts (from 5% to 30% de- to interior design and fit out, space planning to asset pending on the services). A 2 week free of charge trial management. The breadth of our expertise means that period can be granted to you for testing any services you don’t have to source multiple suppliers. We work in of Interfax-Ukraine (on-line or off-line format). Look- partnership with our clients and suppliers to deliver best ing forward to receiving your reply. value and service. 11 Chamber Offi cial Service Providers 2010

ISA Prime Developments KLS Kraft Foods Ukraina 4, Grinchenko vul., 3, Svyatoshynska vul. 23A, Yaroslaviv Val str. Kyiv 03680 Kyiv 03115 Kyiv 01034, Ukraine +38 (044) 490-6970 Phone/Fax: +38 (044) 502-3929 Phone: +38 (044) 490-1300 +38 (044) 496-3757 E-mail: [email protected] Fax: +38 (044) 490-1310 E-mail: [email protected] Web-site: www.kls.ua E-mail: [email protected] Web-site: http://www.nhps.com.ua Web-site: http://www.kraftfoods.com.ua

ISA Prime Developments is a closed joint stock company with foreign invested capital. The company owns busi- ness centres Horizon Park, located on 4 M. Hrinchenko The KLS company provides full range of services in the Str., and on 12, Amosova str., in Kyiv, close to down town sphere of transportation of personal and office property and currently developing other business centres on in Kyiv, regions of Ukraine and throughout the world. The Kraft Foods Ukraina is a part of Kraft Foods Inc. and one Zhilyanska Str. and Gorkogo str. All the business centres company possesses a widely developed regional net- of the largest food companies in Ukraine with its 1600 have unique qualities and strategic locations making work of representatives in Ukraine and reliable partner employees. Kraft Foods entered the Ukrainian mar- them the perfect choice for international clients. Among network practically in all countries of the world, thanks to ket in 1994, the year it acquired the Chocolate Factory its 50 tenants are: the American Chamber of Commerce which all projects are implemented on time, on budget “Ukraina” in Trostyanets. In 1999 despite the economic in Ukraine, Unilever, Cisco Systems, Philips, Nokia, Sie- and to the highest standards. downturn in the country, Kraft Foods Ukraina acquired mens, L’Oreal, Regus, Ferrero, Platinum Bank, Life:), the Salted Snacks plant in Stari Petrivtsi. KLS’s motto is: 100% responsibility, 100% quality and LaFarge and many other famous companies. ISA Prime 100% professionalism. The high quality services pro- KFU products are sold in all cities and towns around Developments offer the highest standards of property vided by KLS have been experienced by representa- Ukraine, as well as in Moldova, Azerbaijan, Belarus’, management provided by New Horizon Property Ser- tives of many Ukrainian and international organizations, Georgia, Armenia, Kyrgyzstan, Kazakhstan, Uzbekistan, vices Ltd. The buildings are equipped with fully integrat- among which is the American Chamber of Commerce Tadzhikistan, Turkmenistan and Mongoliya. ed HVAC systems, indoor and outdoor parking facilities, in Ukraine. many in house amenities such as cafes, banks, mini The key brands in Ukraine are: KORONA, MILKA, BAR- markets, dry cleaning, notary and travel service provid- NI; TUC; OREO; LYUKS; JACOBS, CARTE NOIRE. ers and 24 hour live guarded and CCTV security. Kraft Foods Ukraina is the leader of Ukrainian coffee market and salted snacks market with its Lyuks brand.

12 Chamber Offi cial Service Providers 2010

Microsoft Ukraine, LLC MTS Ukraine Private NIKO Corporation 75, Zhylyanska vul., 4 Floor Joint Stock Company Berth #4, Naberezhno-Khreshatytska Street Kyiv 01032 4th fl oor, Business-centre ‘DNIPRO-PLAZA’ , Kyiv 04070, Ukraine Phone: +38 (044) 496-0310 15, Leipzigska vul. Phone: +38 (044) 200-4111 Fax: +38 (044) 496-0317 Kyiv 01601 Fax: +38 (044) 200-4222 E-mail: [email protected] Phone: +38 (044) 230-0257 E-mail: offi [email protected] Website: www.microsoft.ua Fax: +38 (044) 230-0256 Web-site: www.niko.ua Web-site www.mts.com.ua ‘NIKO’ is one of the leading national corporation operating in Ukraine since 1992 and uniting more than 20 companies with a wide range of activities. Though ‘NIKO’ is mostly known as the automobile corporation, it has also formed the large-scale struc- Founded in 1975, Microsoft is the worldwide ture consisting of transportation, leasing, insurance, logistics, leader in software, services and solutions that engineering, construction, investment, asset management and help people and businesses realize their full po- financial companies with more than 2000 employees. tential. In 2003 Microsoft opened a regional office ‘MTS Ukraine’ is one of the largest wireless pro- Our major achievements: in Ukraine aimed at developing the software mar- viders in Ukraine. Its network covers 98% of the ket, promoting Microsoft products, and providing territory of Ukraine and 99% of its population. • ‘Trade house-’NIKO’ company has been ‘#1 Importer’ in Ukraine partner and customer support, as well as intro- MTS provides mobile and fixed-line services to for 5 consecutive years. ducing and localizing the newest technologies 18 mln subscribers. Investments are mainly di- • During 4 consecutive years ‘NIKO’ was recognized as the and implementing social initiatives in Ukraine and rected at infrastructure and new technologies best automobile company in 2005, 2006, 2007 and 2008 Belarus. Microsoft is the American Chamber of development. Today the company offers the wid- (‘TOP100. Ukrainian Best Companies’ rate by ‘Ekonomika’ Commerce Official Business Productivity Provid- est range of telecommunication services on the publishing house). er, ensuring that the Chamber and its members market at the most favorable prices. Among most • Based on the 2007 fiscal year sales result Mitsubishi Mo- can benefit from the latest Microsoft technologies popular innovative services provided exclusively tors Ukraine has become # 1 in Europe. and solutions. are 3G wireless broadband internet (MTS Con- • ‘NIKO-Ukraine’ has been recognized as the best dealer in Ukraine ® nect), BlackBerry mobile mail and convergent for 4 consecutive year. services for businesses based on combination of • ‘NIKO’ has been included in the Nationwide Rate ‘Gvardiya’ (Best fixed and mobile technologies. Ukrainian Companies) for 4 consecutive years (publishing house ‘Kontrakty’). • Mitsubishi Motors presented by ‘NIKO’ was recognized as the ‘Brand of the year 2008’. • ‘NIKO-Ukraine’’s service was awarded as ‘The best Service of the year’. • Our top managers have been recognized as the best managers of Ukraine for last 5 years. • ‘NIKO’ is on the general list of top 20 importers and tax payers in Kyiv and Ukraine. 13 Chamber Offi cial Service Providers 2010

Slavutich, Carlsberg Group Ukraine International Airlines (UIA) UPS 137, street Chervonopraporna 201-203, Kharkivske Shose, Kyiv 02121 20, Mechnykova vul., 1 Floor Kyiv 03026, Ukraine Phone: +38 (044) 581-5656 Kyiv 01021 Phone: +38 (044) 490 29 29 Fax: +38 (044) 230-8866 Phone: +38 (044) 280-0000 Fax: +38 (044) 490 29 33 E-mail: uia@fl yUIA.com Fax: +38 (044) 280-4164 E-mail: [email protected] Website: www.fl yUIA.com E-mail: [email protected] Website: www.slavutich.com Web-site: www.ups-ukraine.com

Ukraine International Airlines (UIA) is Ukraine’s lead- ing international carrier, connecting Ukraine with nearly 3,000 locations in the world and operating over 450 The owner of Slavutich is Carlsberg Group. Carlsberg flights a week from Kiev, Odessa, Lvov, Donetsk, Khark- is one of the leading brewing groups in the world, with ov and Simferopol on its own aircraft and cooperating UPS is an Official Service Provider of the American large portfolio of beer and soft drinks brands. Over 43 with partner airlines. Chamber of Commerce through provision of delivery 000 employees are working in Carlsberg Group in 50 services. countries. The company’s products are sold in more For the last three years UIA has been an Official Service than 150 markets. For more information, please visit Provider of the American Chamber of Commerce and Conscientious of its past and present, UPS is looking to- www.carlsberggroup.com. always offers Chamber Members attractive fares along ward the future by identifying ways to reduce waste and with traditionally high standards of customer service. recycle used materials. UPS leads the industry when it Carlsberg Group in Ukraine includes: Slavutich brewery comes to recycling and source reduction. Some of the in Zaporizhzhia, Slavutich brewery in Kyiv and Lvivska Unique new offers are available for members of UIA company’s initiatives have been recognized by organi- Pivovarnya in Lviv. frequent flyer program Panorama Club. They can now zations such as The Alliance for Environmental Innova- receive discounted tickets on UIA flights by redeeming In Ukraine company represents the following brands: tion. In its operations UPS is extremely concerned with Panorama Club Miles. Slavutich, Lvivske, Tuborg, Baltika, Carlsberg, Holsten, environmental aspects of its activities using reusable Corona, Arsenal, Kvas Taras, TopTea. Previously, you had to earn a fixed amount of miles to sort bags, recycled computer paper, recycled paper for redeem them for award tickets. From now on you can envelopes and delivery notices etc., keeping electronic For more information, please visit: www.slavutich.com. redeem miles against a discount e-voucher whenever records of all delivery information while reducing costs, you wish, on UIA’s website www.flyuia.com. You may re- preserving performance, and maintaining appearance. ceive a discount after collecting as little as 3, 000 miles; UPS has strong product responsibility before its clients if you collect more miles you will have a chance to get an and environment having developed a special Autho- 80 percent discount for your next flight with UIA. rized Return Services (ARS) for customers who benefit through cost-effectiveness, quality assurance, and re- source conservation. 14 Chamber Offi cial Service Providers 2010

Ukrainian Marketing Group WorldAPP, Inc. 72, Chervonoarmiyska vul. 4/8, Kurenivsky prov., 2 Floor Kyiv 03680 Kyiv 04073 Phone: +38 (044) 568-5919 Phone: +38 (044) 379-1430 Fax: +38 (044) 568-5924 Fax: +38 (044) 379-1433 E-mail: [email protected] E-mail: [email protected] Website: http://www.umg.ua Web-site: www.keysurvey.com

Ukrainian Marketing Group® (UMG®) is the leading • FGDs, In-depth interviews, ethnography study (ob- company of UMG® Group of companies (UMG®) which servation), in-home visits, accompanied shopping also incorporates: (qualitative); • MEMRB-UMG® Retail audit Services • F2F, ?ATI (CATI- center network in five CIS countries), PAPI, CAPI, On-line panel for Consumers surveys via • Branding Agency “MARKA” WorldAPP is the industry leader in web-based data col- Internet (quantitative); • COMCON - Ukraine (U-TGI) lection technologies, and provides Webbased appli- • desk research, expert surveys, qualitative & quantita- • COMCON - Pharma Ukraine cations for collecting, managing, and leveraging data tive surveys (complex strategic research) throughout the enterprise. Today UMG® provides a full range of Market Research WorldAPP is an Official Service Provider of the American ® Services in Ukraine, all CIS countries, Western Europe UMG arranges market research services in accor- Chamber of Commerce through the provision of an in- and USA. dance with international standards of marketing and so- novative on-line surveying platform, Key Survey, allow- cial research ICC/ESOMAR and AMA code of ethics. UMG® conducts all types of Ad-hoc Market Research ing the Chamber to quickly and rapidly react to changing Services. It uses advanced world-wide methods and Our experience: needs of the Membership through the capture of reliable and timely information. own research methodologies which cover detailed mar- Beiersdorf, Cadbury, XXI Century Investments, Citibank, ket analysis and brand positions and include: Coca-Cola, Foxtrot, Furshet, L’Oreal, MTI, Nestle, Pepsi- WorldAPP’s online enterprise data management solu- • Tracking Syrvey (U-Track, TRACE); Co, Philip Morris, Procter&Gamble, Samsung, Sandora, tion, Key Survey, enables customer service, marketing, • Unique price research (CBC); Telenor, Tetra Pak, MTS, Utel, Veres, Vitmark, SABMiller, and HR departments to gather feedback on customer satisfaction, product feedback, and employee feed- • Innovation research; Soyuz-Viktan, Ukrtelecom, UBDP and many others. back. Key Survey’s core technology is an information • Consumer Landscape; collection utility designed to help companies gather • Advertising Effectiveness Study; data from any point, through any medium, and dissemi- • Advertising Testing (Ad just) and other. nate this information across the enterprise. UMG® experts have professional experience in mod- ern methods of research conducting:

15 The Chamber in Ukraine The Chamber in Ukraine

The American Chamber of Commerce in Ukraine The value-added Chamber Membership benefits (Chamber) is among the most active and effective offered to both corporate Members and diplomatic non-government, non-profit business organizations mission partners include but are not limited to: effec- operating in Ukraine. One of our principal activities tive and proactive Advocacy and Lobbying Activities; is to represent the foreign investment community access and involvement within the Chamber Com- as well as to facilitate the entrance of potential new mittees and Working Groups; value-added contacts investors into this market. We advocate on behalf and stratified business Networking; informative pub- of our Members that are from more than 50 nations lications; a wide variety of socially oriented and fami- across the globe not only to the Ukrainian govern- ly focused events and activities; streamlined Express ment, but also to all other governments, which are Business Visa Services; a money saving Member 2 economic partners of Ukraine, on matters of trade, Member Discount Program; continuously expanding commerce, and economic reform. The Member Gourmet Club, etc. organizations of the Chamber represent the larg- est strategic and institutional investors operating in As an organization constantly striving to maintain Ukraine who have committed a majority of the for- its innovative edge and respond to the needs eign direct investment into this market. Our diverse of the business community the Chamber repre- Membership base unites companies from a variety sents, in 2010 the Chamber was working on fur- of regions and countries, including North America, ther improvement of its communications tools, Europe, Asia, Russia, and Ukraine. including the following new projects: Cham- ber Competitiveness Scorecard designed to During the last 19 years the Chamber has been ac- track the adoption of most important legislation tively working on establishing cooperation with the incorporated into the Chamber’s “Partnership Ukrainian authorities to improve the business envi- for Successfully Competing in the Global ronment and attract domestic and foreign invest- Economy” a special bi-annual analytical work- ment into the Ukrainian economy. Our goal is to ing product; newly formatted Morning News promote fair and transparent rules of doing business in conjunction with Interfax; new innovative ver- in Ukraine and Ukraine’s integration into the larger sion of the highly trafficked Chamber web-site global community (www.chamber.ua) including a new search op- tion making the site easier to navigate as well as The Chamber is an active and engaged Member new sections providing access to relevant and of the Committee on Economic Reforms under the timely information; new format of the Advocacy President of Ukraine, including a wide variety Work- & Committee and Legislation Updates; wide ing Groups under the Committee. Also, the Cham- range Knowledge Series Seminars designed ber continues to serve as a proactive Member of to provide a platform for professional growth; many Public Councils within the Ukrainian Ministries new Committees and Working Groups that and State Committees as well as on Expert Councils provide the important policy framework into the within Verkhovna Rada Comittees. Chamber’s lobbying and advocacy activities. 17 Chamber Calendar of Events 2010 Chamber Calendar of Events 2010

JANUARY

January 14th • Chamber “Welcome Back” Business Networking Cocktail.

January 20th • Customs Committee Meeting

January 21st • Open Agriculture Committee Meeting FEBRUARY • CSR Committee Meeting

January 22nd February 3rd February 17th • Extraordinary Tax Committee Meeting • Tax Committee Meeting • Captains of Industry (COI) Event “Housewarming Party” January 25th February 4th • Banking and Financial Service Committee Meet- • Chamber “Insiders View” Meeting “Where to February 18th ing Invest in Ukraine” • Joint Real Estate, Agricultural and Legal Com- • Chamber Pre-Elections Business Networking mittees Meeting January 26th Cocktail • Chamber Membership Card Event “Housewarm- • Healthcare Committee Meeting ing Party” • Chamber “In-Focus” Meeting with Mr. February 7th Petro Poroshenko, Minister of Foreign Af- • Election Night 2010 February 22nd fairs of Ukraine • Banking and Financial Service Committee Meet- February 10th ing January 27th • PR Committee Meeting • Annual Chamber Member Appreciation Recep- • Chamber English Language Movie Premier “Val- February 23rd tion. entine’s Day” • Open HR Committee Meeting • Healthcare Market Leaders’ Breakfast January 28th February 11th • IT Committee Meeting • Chamber Knowledge Seminar “OPIC February 24th • Travel and Tourism Committee Meeting Open for Business in Ukraine” • IPR Committee Meeting • “St. Valentine’s Day” Chamber Membership Card • Customs Committee Meeting Event

February 16th • Chamber Knowledge Seminar on “Top Team Effectiveness” 19 Chamber Calendar of Events 2010

MARCH

March 1st March 16th March 25th • Telecom Committee Meeting • Chamber English Language Movie Premier “Alice • Chamber Seminar for Women “Language of in Wonderland” Partnership” March 3rd • Diplomatic Insiders Club • Tax Committee Meeting March 27th • Chamber Indoor Football Tournament March 10th March 18th • IT Committee Meeting • HR Committee Knowledge Seminar “Recruiting March 28th and Talent Management” • “St. Patrick’s Day” Business Networking Cocktail • Chamber Indoor Football Tournament • Chamber Marketing Club March 20th March 29th March 11th • Chamber Indoor Football Tournament • Football Afterparty • Chamber “In-Focus” Meeting on “How to March 21st March 30th Improve the Investment Attractiveness of • Chamber Indoor Football Tournament • CSR Committee Meeting Ukraine. Advice to the New President” in Conjunction with Delo Newspaper March 22nd March 31st • Open Legal Committee Meeting: Public- • Chamber Knowledge Seminar “Tax and Customs March 15th Private Partnership in Ukraine Litigation: One Year of Intensive Care” • Healthcare Committee Meeting 20 Chamber Calendar of Events 2010

APRIL

April 1st April 7th April 20th • Chamber “In-Focus” Meeting with Mr. Val- • HR Committee - Working Group on General • Special Chamber Agricultural Committee Semi- eriy Piatnytsky, Deputy Minister of Econo- Agreement Meeting nar “New Strategies for Agrarian Business” my • Fuel & Energy Committee Meeting April 21st April 6th • Tax Committee Meeting • Silver Membership Card Event: Turkish Delight • Chamber General Membership Meeting: April 9th “Ukraine - On the Road to Stability”. Special April 22nd • Chamber Diplomatic Insiders Club Guest-Speaker: U.S. Ambassador John F. Tefft • Special Chamber Knowledge Seminar “Investing in Georgia – Brief • Real Estate Committee Meeting April 10th Legal Overview with Some Practical • Chamber Family Event “Easter Egg Hunt” Tips” April 12th April 26th • Chamber Healthcare Committee - Working • Open Telecom Committee Meeting Group on Price Regulation and Reimbursement System April 27th • IT Committee Meeting • Healthcare Committee Meeting • Travel and Tourism Committee Meeting April 13th • HR Committee Meeting April 28th • Special Chamber Knowledge April 14th Seminar “Procedure and Details • PR Committee Meeting of Work Activity of Foreign Citizens April 15th in the Territory of Ukraine: Legal • Chamber Knowledge Seminar: The Regulation, Problem Aspects, and Importance of Education Policy for Eco- Practical Recommendations” nomic Competitiveness • Chamber “Insiders View” Meeting: • Business Networking Cocktail “Anniversary of the “Ukraine - on the Road to Stability Opening of the First McDonald’s in the World” and Reforms?”

April 16th April 29th • COI Event: Corona’s Mexican Fiesta • Logistics and Transportation Leaders Business Breakfast April 19th • Banking and Financial Service Committee Meet- ing 21 Chamber Calendar of Events 2010

MAY

May 12th May 25th • Tax Committee Meeting • Chamber Knowledge Seminar • English Language Movie Premier “The Backup “WEB-CITY 2010. Ukrainian Plan” Cities Online”

May 13th May 26th • IT Committee Meeting • Chamber Knowledge Seminar • Business Networking Cocktail “May Holidays “Ukrainian Tax and Legal Up- After Party” date: What’s New in Taxation, Currency Control and Invest- May 18th ment Regulation?” • Healthcare Committee Meeting May 27th May 19th • Open Tax Committee Meeting dedicated to Over • Open Customs Committee Meeting Normative Losses Taxation with the Leadership of the State Cus- toms Service of Ukraine May 29th • Chamber Family Event “Visiting Ukrainian Village” May 20th • Chamber Knowledge Seminar “Com- May 30th puter Support Managed Services in • Agricultural Committee Meeting Ukraine: Effective IT-Infrastructure • Open Banking and Financial Service Management.” Committee Meeting

May 21st • Chamber Knowledge Seminar “Mobile Work Environment (MWE) – Time to Start” 22 Chamber Calendar of Events 2010

JUNE

June 1st June 8th June 17th • Chamber Knowledge Seminar: Success in Inter- • Chamber Knowledge Seminar “Com- • Real Estate Committee Meeting national Arbitration bating Distribution of Counterfeits and • IT Committee Meeting • Chamber English Language Movie Premiere Grey Imports: Legal Regulation, Prob- • Business Networking Cocktail “Eat Your Vegeta- “Sex and the City - 2” lem Aspects, and Practical Recom- bles Day” mendations” June 3rd June 19th • Open HR Committee Meeting June 9th • Chamber Special Project – Walking Excursion • PR Committee Meeting • Logistics and Transportation Committee Meeting “The Old Mystery of Podil” • Chamber “In-Focus” Meeting with Mr. June 5th Kostiantyn Hryshchenko, Minister of June 21st • Chamber YP Net CSR-Event “Let’s do it, Foreign Affairs of Ukraine • Banking and Financial Service Committee Meet- Ukraine! Let’s make Kyiv Clean!” ing June 10th • Chamber ICT Market Leaders Breakfast June 22nd • Working Group on the Draft Tax Code – VAT June 11th • VAT Working Group Meeting June 23rd • 2010 FIFA World Cup with the Chamber - Open- • Chamber General Membership Meet- ing Ceremony and First Game ing: Increasing the Competitiveness of Ukraine: Unveiling of the 2010 June 15th Chamber Competitiveness Partnership Project • PRESS CONFERENCE: Partnership for Successfully Competing in the June 24th Global Economy and State Program for • Working Group on Information Policy Develop- Economic Reform 2010 – 2014 – Many ment Synergy between both Reform Plans • HR Committee Meeting • Healthcare Committee Meeting June 29th • Tax Committee Meeting • Meeting with Mr. Mykhailo Brodsky, Chairman of the State Committee for June 16th Regulatory Policy and Entrepreneurship • Chamber Round Table “Competitiveness and Trends-What the Future Holds for Business in June 30th Post-Election Ukraine” • Agricultural Committee Meeting • Open Legal Committee Meeting 23 Chamber Calendar of Events 2010

JULY

July 1st July 15th • Open PR Committee Meeting • PR Committee WG on Information Policy Devel- opment July 3rd • Meeting with the Prime Minister of • Chamber Annual Charitable American Ukraine Mr. Mykola Azarov Independence Day Picnic 2010 AUGUST July 16th July 5th • Special Tax Committee Meeting • Chamber 2010 Picnic Sponsors’ August 2nd Appreciation Reception July 17th • Banking and Financial Service Committee Meet- • VI Chamber Paintball Tournament ing July 6th • Travel and Tourism Committee Meeting July 20th August 10th • Chamber “In-Focus” Meeting with Ms. • Fuel & Energy Committee Meeting July 7th Tetyana Iefymenko, Deputy Minister of • Chamber “In-Focus” Meeting with Finance of Ukraine August 11th Mr. Oleh Povolotsky, Head of the • Special Open Tax Committee Meeting State Committee of Ukraine for July 21st dedicated to Draft Tax Code Technical Regulation and Consumer • Fuel & Energy Committee Meeting Policy August 18th July 22nd • PR Committee Meeting July 8th • Chamber Summer Leisure Day • Chamber Open Logistics and August 19th Transportation Committee Meeting: July 26th • Chamber Annual Tropical Boat Cruise Cold Chain Logistics in Ukraine: • CSR Committee Meeting Problems, Possibilities and Actions August 25th July 28th • Chamber English Language Movie Premiere • Chamber Legal Committee Meeting • Tax Committee Meeting “Karate Kid” • 2010 Chamber Picnic Volunteers Appreciation Party July 29th August 26th • HR Committee Meeting • CSR Committee Meeting July 12th • Joint Telecom and IT Committee July 30th August 27th Meeting • PR Committee Meeting • Special Tax Committee Meeting

July 14th July 31st August 31st • Open Healthcare Committee • Chamber Family English Language Movie Premiere • Membership Card Event: Endless Summer Meeting “Cats & Dogs 2: The Revenge of Kitty Galore” Beach Party 24 Chamber Calendar of Events 2010

SEPTEMBER

September 2nd September 15th September 21st • Joint HR and CSR Committees Meeting • Travel and Tourism Committee Meeting • Chamber Knowledge Seminar “Product Liability • Join Travel & Tourism and Legal Committees Issues in Ukraine: Legal Regulation, Problem September 6th Meeting Aspects, and Practical Recommendations” • Customs Committees Meeting • Chamber’s Traditional “Welcome Back” Business • Chamber Fuel & Energy Committee Meeting • Banking and Financial Service Committee Meeting Networking Cocktail September 23rd September 7th September 16th • Working Group Meeting on LLC • IT Committee Meeting • Chamber Knowledge Seminar “Sales Force • Real Estate Committee Meeting • Healthcare Committee Meeting Competency and Training” • Chamber English Language Movie Premiere September 24th “Going the Distance” September 17th • Chamber Knowledge Seminar “Legal • Special Joint IPR and Customs Committees Aspects of PPP Legislation and Its September 8th Meeting Practical Implementation on the Local • Logistics and Transportation Committee Meeting Level” September 18th Tax Committee Meeting • Chamber Family Event “Excursion to Pirogovo” September 25th September 9th • IX Chamber Annual Outdoor Football Tourna- September 20th • Legal Committee Meeting ment • IPR Committee Meeting September 10th September 29th • Chamber Knowledge Seminar: “Development • Chamber “In-Focus” Meeting: “National Projects and Implementation of Insurance Programs for in Ukraine – Development and Perspectives of Employee” Implementation” • General Membership Meeting with Ambassador September 11th Jose Manuel Pinto Teixeira, Head of the Delega- • Chamber YP-Net CSR Event “Who Let the Dogs tion of the European Union to Ukraine Out?” Chamber Toastmasters Club Meeting September 13th • Telecom Committee Meeting September 30th • Round Table “Pricing and Reimbursement: September 14th International Experience and Topical Issues for • Agricultural Committee Meeting Ukraine” • Chamber General Membership Meeting with • HR Committee Meeting U.S. Ambassador John F. Tefft • Chamber Marketing Club 25 Chamber Calendar of Events 2010

OCTOBER

October 1st October 14th October 26th • IT Committee Meeting • III Ukrainian-American Business Forum • Chamber Knowledge Seminar “Draft Tax October 2nd Code - New Challenges for Business” October 15th • IX Chamber Annual Outdoor Football Tourna- • Chamber Knowledge Seminar • Special Fuel and Energy Committee ment “Draft Tax Code – Key Changes Meeting • Special Chamber Banking and Financial Ser- October 4th and Initiatives” vices Committee Meeting • Banking and Financial Service Committee Meeting October 19th • Chamber English Language Movie Premiere • Chamber English Language Movie Premiere • OSAC Committee Meeting “Social Network” “The Other Guys” First Chamber Karaoke Contest October 27th October 5th October 20th • Healthcare Committee Meeting • Telecom Committee Meeting • Agricultural Committee Meeting • Toastmaster Club October 6th • Travel and Tourism Committee Meeting • Working Group meeting on LLC • Chamber Open Fuel and Energy October 28th • Chamber Knowledge Seminar “Investing in • Chamber Toastmaster Club Committee Meeting with Mr. Volodymyr Ignashchenko, First Georgia – Additional Steps Taken to Facilitate October 7th Deputy Minister for Environmental Business” • Fuel & Energy Committee Meeting Protection • HR Committee Meeting • X Lviv Economic Forum • Tax Committee Meeting • Real Estate Committee Meeting • Legal Committee Meeting • Chamber “United Nations Day” Business • Chamber YP-Net “Heaven and Hell” Halloween Networking Cocktail Party October 12th • Waste Packaging Management Working Group October 25th October 29th Meeting • Banking and Financial Service Committee • PR Committee Meeting • Chamber English Language Movie Premiere “Life Meeting • Open Travel and Tourism Committee Meeting: as We Know It” Getaway to Mexico October 13th • Chamber “In-Focus” Meeting: “Ukraine - On the Road to Stability through Reforms” with Mr. Vitaliy Kho- mutynnik, Head of the Parliamentary Committee on Taxation and Customs Policy 26 Chamber Calendar of Events 2010

NOVEMBER

November 2nd November 16th November 19th • Chamber Annual Bowling Tournament • Chamber English Language Movie Premiere • Chamber Knowledge Seminar: “Business Simu- “Harry Potter and the Deathly Hallows: Part 1” lation “Promises, Promises” November 3rd • Chamber Annual Bowling Tournament • Chamber Open IPR Committee Meeting dedi- • Joint Agricultural, Legal and Customs Commit- cated to EURO-2012 tees Meeting November 17th • Open IPR Committee Meeting • Chamber Knowledge Seminar: “Effective Office November 4th Lease: Bringing to Light Tenant’s Risks and Op- • Chamber COI Event “Carlsberg Beerfest with the November 22nd portunities” Chamber” • Chamber Banking and Financial Services Com- • Chamber “In-Focus” Meeting with Mr. mittee Meeting November 5th Sergiy Siomka, Deputy Head of the • Fuel & Energy Committee Meeting State Customs Service of Ukraine November 23rd • Agricultural Committee Meeting November 8th • Tax Committee Meeting November 25th • IT Committee Meeting November 18th • Chamber “In-Focus” Meeting with First Deputy • Joint Logistics & Transportation and Real Estate November 9th Minister of Transport and Communications Committees Meeting • Chamber Knowledge Seminar “Inco- Mr. Volodymyr Korniyenko • Chamber Knowledge Seminar: “Fo- terms Rules 2010: What’s New?” • HR Committee Meeting • Chamber Annual Bowling Tournament rensics - How to Assess and Prevent Fraud Risks?” November 11th • Chamber “World Button Day” Business Network- • Legal Committee Meeting ing Cocktail

DECEMBER

December 2nd December 9th • IT Committee Working Group Meeting • Chamber “Get to Know the Candidates” Busi- • Legal Committee Meeting ness Networking Cocktail • Annual Chamber Membership Card “Christmas December 15th Wine Tasting” • Annual Meeting and Board of Directors Elections

December 8th December 22nd • Tax Committee Meeting • Joint HR&CSR Committees Meeting 27 Chamber Success Stories in 2010

Press conference dedicated to the presentation of the Chamber’s “Partnership For Successfully Competing in the Global Economy” Chamber Success Stories in 2010

28 Chamber Success Stories in 2010

POLICY RELATED CHAMBER SUCCESS STORIES IN 2010

Throughout 2010 the Policy Team of the American resenting the interests of the internationally oriented The Chamber Policy Team along with specialists from Chamber of Commerce in Ukraine (Chamber) in business community which the Chamber unites. Chamber Member Companies as well as our part- conjunction with the Board of Directors and interest- ner organizations conducted a focused and proac- ed Members successfully advocated interests of the In 2010 the Chamber has been proactively involved tive advocacy and lobbying campaign on this issue entire Chamber Membership striving for reforms and into finding a resolution to the ongoing problem of preparing and presenting a number of documents changes that would positively impact both the do- the accrual of significant amounts of non-reimbursed explaining our concerns and providing recommen- mestic and international business community making VAT that has had a negative impact on the solvency dations in regards to rapidly increasing VAT refunds Ukraine more competitive in the global market place. and profitability of Chamber Member companies as arrears in Ukraine and using of the Government well as the investment climate and rural develop- Domestic Loan Bonds (GDLB) as a tool to reim- Chamber “Success Stories” in this regard include ment in Ukraine. burse the overdue and outstanding VAT refunds. but are not limited to the following:

The Chamber, as a representative of the business community, continues to proactively utilize different advocacy venues to lobby for positive changes in the business environment in Ukraine. On September 1st, 2010 the President Viktor Yanukovych issued Decree #892 “On the Council of Local and Foreign In- vestors” reorganizing the Foreign Investors Advisory Council (FIAC) and establishing a new advisory body to the President that will engage strategic local and foreign investors into the process of decision mak- ing assisting in the reform process, developing of the economy of Ukraine and enhancement of the coun- try’s integration into European and global economic systems. The Chamber’s proposals regarding the Council’s reorganization were taken into account by the President of Ukraine helping to create an effective platform for the business community to engage in a high level policy dialog with the President of Ukraine.

The newly established Local and Foreign Investors Council under President Yanukovych is another venue where the Chamber actively participated while rep- Chamber Knowledge Seminar “Legal Aspects of PPP Legislation and Its Practical Implementation on the Local Level” 29 Chamber Success Stories in 2010

On July 8th, 2010 the Law #6525 “On Collection and Accounting of Unified Social Contribution” was adopted by the Parliament. Such decision was taken with 250 confirming votes out of 425 present. The Draft Law envisages consolidation of the func- tions, similar to functions of all funds of compulsory state social insurance in one body — Pension Fund of Ukraine, i.e.: registration of the payers of insurance payments; development and management of the State Register of Social Insurance; maintenance of the unified reporting; control over the completeness and timely charging of the unified social contribution. Moreover, it is suggested to implement the payment of the unified social contribution for compulsory state social insurance (from January 1st, 2011) and its division by the State Treasury to centralized ac- counts of the social insurance funds.

In December 2010 the Tax Code of Ukraine #7101-1 with amendments incorporated by the President of Ukraine has been adopted by Verkhovna Rada and subsequently signed into law.

The American Chamber of Commerce’s business community was actively involved into the process of preparing and adoption of the Tax Code, advocating for economically rational well grounded wording of the Tax Code which we will all have to live with for years to come.

The Chamber actively participated in the Working Group on preparation of the Draft Tax Code un- der the chairmanship of Mr. Sergiy Tigipko, Vice- Prime Minister of Ukraine, held working dialog with Ministry of Finance of Ukraine, the Committee on Tax and Customs Policy of the Verkhovna Rada of Ukraine and Presidential Administration as well as X Annual Lviv International Economic Forum was involved in discussions, of the Draft document 30 Chamber Success Stories in 2010

in a wide range of meetings with relevant state au- thorities. The Chamber Tax Committee experts via Chamber Tax Code Working Groups developed comprehensive and professional comments and recommendations to the Draft Tax Code, registered on June 15th, 2010 in the Parliament, submitted for Public Consideration on August 3rd, adopted in first reading on October 7th.

Moreover the Chamber utilized the time be- tween signing the Tax Code by the Head of Verk- hovna Rada of Ukraine (November 26th) and fi- nal adoption of the Tax Code with amendments incorporated by the President of Ukraine (De- cember 2th) to provide comments to the Docu- ment striving to ensure the final version of the document signed into law corresponds to inter- national standards and best practices adapted to the Ukrainian reality.

The Chamber Membership has been successful in finding compromises on many of the issues it has lobbied for which have subsequently been incor- porated into the final document including but not limited to:

• Introduction of same personal income tax rates • Allowance for businesses that have branches or introduction of the Tax Code in order to allow the for Ukrainians and foreigners who legally reside in other subdivisions in Ukraine to choose consoli- business community to adapt to the changes. The Ukraine, to comply with the European practices; dated Corporate Income Tax payment; transitional rules allow for nominal penalties (1 UAH), • Deductibility of Royalties at a 4% threshold of net • Postponed for one year — obligation for busi- but still the tax audits of this period are allowed. sales; ness to report to the tax authorities on perma- • Deductibility of service fees payable to non-resi- nent/temporary differences between statutory The Chamber will continue to advocate for changes that dents at a 4% threshold of net sales; and tax accounting; the Membership believes continue to be necessary as • Mechanism for automatic VAT refund from the Gov- • Clear provision that corporate reorganizations well as closely monitor implementation to ensure that ernment containing clear procedures/criteria, not are not subject to Corporate Profits Tax and Val- problems that arise or discrepancies in perception or depending on the judgment of the tax authorities, ue Added Tax (VAT) in order to simplify Mergers & implementation of the new tax rules between the pri- in order to simplify tax administration. In addition, Acquisition activities in the country; vate sector and the tax administration are addressed in penalties of tax inspectors for violating the rules; • Six month “Grace period” for businesses after the a pro-active manner introducing additional clarity. 31 Chamber Success Stories in 2010

On Thursday, July 1st, 2010, the Verkhovna Rada of The Chamber Policy Team successfully lobbied ap- Service of Ukraine #130 dated February 18th, 2010” Ukraine adopted the critical legislation supported by propriate Parliamentarian and other relative State the “Excise” Customs Terminal ceased to exist. the Chamber: Draft Law “On Public Private Partnership” authorities to prevent adoption of the initial poorly (Draft Law #5239) which the Chamber Members were written Draft Law. Many of the changes recommend- The Chamber addressed the State Customs Ser- involved in developing and advocating for passage. ed by the Chamber have been considered and ac- vice of Ukraine stating that the creation of the Excise The mentioned legislation is necessary for further suc- knowledged in the final Draft. The Chamber started Terminal may lead to increasing of financial expendi- cessful infrastructure development in Ukraine. to work on the Draft Law before it has been regis- tures, breach of contractual commitments as well as tered in the Parliament preparing the Chamber poli- it might increase time for customs clearance. More- The Chamber Policy Team, in conjunction with many cy position and arguments to be further presented to over it also did not correspond to the international fellow Members, consistently monitored and worked all appropriate stakeholders. commitments of Ukraine and to the current norms of on the above mentioned legislation. On March 22nd, Ukrainian legislation. 2010 the Chamber held a Legal Committee meeting On April 27th, 2010 Draft Law #6122 “On Amend- devoted to the discussion of the Public-Private Part- ments to Certain Legislative Acts of Ukraine (on After undertaking numerous efforts of the Chamber nership that needed to be adopted to provide a solid crediting and stimulating of foreign investments)” Policy Team in conjunction with Board of Directors foundation for further development of Ukraine’s infra- was adopted, cancelling the provisions, enacted by to address the changes on Taxation of Income of structure as well as move forward with many important the Law of Ukraine #1533 – VI “On Amending Cer- Foreigners and Non-Residents imposed by STA projects including those related to the successful im- tain Legislative Acts of Ukraine aiming to Overcome Letter #28593/7/17-0717 dated December 23, plementation of the EURO 2012 championships. Negative Impacts of the Financial Crisis” dated June 2009 the mentioned legislation were cancelled. 23rd, 2009. The Chamber has worked diligently Since December 2009 this issue was a priority for At the beginning of 2010 Ukrainian Government through the Chamber Banking and Financial Ser- the Chamber as it was widely perceived as a move submitted to the Parliament Legislation on Signifi- vices Committee, reacting proactively in order to win that further harmed the investment environment cant Changes to Taxes & Tariffs. Since this legislative the issue. The Chamber issued Letters to the Presi- and highlighted the often changing rules of the initiative of the Government was registered and intro- dent of Ukraine, Governor of the National Bank of game in this market. duced to the public at the end of April the Chamber Ukraine and Chairman of the Parliament Committee Policy Team, Board of Directors and the Chamber on Finance and Banking emphasizing that the Law Banking and Financial Services Committee and Tax introduces restrictions in the realization of interna- Committee as well as many partner-organizations tional transactions and supporting Draft Law #5378 maintained a proactive advocacy campaign on be- “On Amendments to the Certain Laws of Ukraine” half of the Membership and investment community. (regarding overcoming negative effects of the global Initially the Draft Law #6337 “On Amendments to economic crisis). Certain Legislative Acts of Ukraine” (regarding taxa- tion) proposed significant and rapid increases of After an intensive advocacy and lobbying campaign many taxes and tariffs (such as on land plots, use of by the Chamber Policy Team, Chamber Customs water as well as excise duties for alcohol and tobac- Committee and Chamber Healthcare Committee on co products), changes into the VAT administration, Monday, April 12th, 2010 in accordance to the Or- taxation policy and banking reporting provisions, der of the State Customs Service of Ukraine #344 which would directly and adversely impact business- “On Liquidation of the “Excise” Customs Terminal Chamber Strategic Policy Session es operating in Ukraine. and amendments to the Order of the State Customs 32 Chamber Success Stories in 2010

EVENTS RELATED SUCCESS STORIES

CEOs, Country Managers and General Directors of in high-level Networking with fellow Members and Chamber Member Companies, Ambassadors and VIP guests while enjoying delicious food and bever- other prominent guests an opportunity to engage ages in an interesting venue.

Chamber’s Traditional Welcome Back Business Networking Cocktail

Business Networking Cocktails remain one of the most popular events in the Chamber’s Net- working offerings and over the years has grown dramatically and is always a very effective Net- working opportunity open to all Chamber Mem- bers. These events are usually hosted by one of the Chamber Gourmet Club Restaurants who work hard to ensure that Chamber Members have pleasant evening in an environment that is condu- cive to quality Networking.

In 2010 the Chamber continued to successfully organize senior level Networking events entitled Captains of Industry (“COI”) Events providing IX Chamber Annual Outdoor Football Tournament 33 Chamber Success Stories in 2010

ing tradition of organizing the Annual Charitable American Independence Day Picnic attract- ing over 4000 guests. This year all attendees had an opportunity to participate in all kinds of games and contests while enjoying live musical entertain- ment from well-known performers and DJs, chil- dren playgrounds, fireworks, a Grand Raffle, and of course, tasty food and cold beverages. Kids had fun in the Kid’s Zone where every child walked away with a goodie bag filled with great stuff.

The Events Team is excited to organize fun and new Events in 2011 providing unique opportunities for Chamber Members to build new business contacts and enjoy Networking with friends and colleagues.

Chamber Annual Bowling Tournament Winners

Chamber Social/Family and Sport events Ukraine the 2010 Chamber’s Healthy Life are excellent team building opportunities and ex- Styles Partner for their support of all Chamber citing competitions that highlight sportsmanship Sporting events. and enables employees of Member companies to show off their talents both inside and outside the The American Chamber of Commerce in Ukraine COI Event “Carlsberg Beerfest with the Chamber” office. The Chamber would like to thank Zelmer (Chamber) was proud to continue the long stand- 34 Chamber Innovations in 2010

Unveiling the 2010 “Partnership for Successfully Competing in the Global Economy” Chamber Innovations in 2010

35 Chamber Innovations in 2010

The world is changing and a key to success in an unstable environment is a flexible and creative approach to the new challenges. In 2010, the Chamber introduced a wide range of innovative initiatives that add value and help the Members to be successful and competitive through introduction of new effective policy related inno- vations, new exciting networking events, as well as cutting edge communications platforms. POLICY INNOVATIONS

In 2010 the American Chamber of Commerce in ber launched a new series of meetings with Ukrainian Program as a considerable step on the way towards Ukraine (Chamber) and the Organization for Eco- officials entitled “Ukraine – On the Road to Stability European integration, overcoming the recession, nomic Cooperation and Development (OECD) unit- and Reforms” that shed light on the current political creation of a prosperous society, building a competi- ed efforts to move forward the Competitiveness of and economic affairs in Ukraine with a focus on the tive economy and effective public administration. Ukraine and coordinate activities of business with impact on the business and investment environment. relevant governmental institutions, non-governmen- The Chamber Leadership and Policy Team actively par- tal organizations, and international agencies repre- The Chamber and our Membership remained com- ticipated in the special Working Groups created to de- senting the expert community. mitted to the reform process and looks forward to velop the Draft Program on Economic Reforms in dif- continuing to positively and proactively contribute ferent spheres, such as: sustainable economic growth, The Chamber, understanding the complexity, nu- to this important process of implementation of com- business climate and investment; technological mod- ances and need to build a large coalition around prehensive reforms that will drive the future success ernization of economy and infrastructure development; the “Competitiveness Partnership” moved it to the of Ukraine. international integration and cooperation and legisla- next level through the joint activity with the Organi- tive and institutional support to reform process. zation for Economic Cooperation and Development The Chamber proactively utilized different advocacy (OECD) and its special project “Sector Competitive- venues to push for reforms such as the Investment The Chamber strongly supports the intentions of ness Strategy for Ukraine” that brings together lead- Advisory Council, the Entrepreneurs’ Council, Com- the Presidential Administration to implement the ing economies of the world to “support sustainable mittee on Economic Reforms under the President of necessary reforms and welcomes the willingness of economic growth, boost employment, raise living Ukraine and other relevant venues assisting in gath- the new state leadership to follow the philosophy of standards, maintain financial stability, assist other ering recommendations from the internationally ori- improving the Ukraine’s Competitiveness which the countries’ economic development and contribute to ented business community in a wide variety of indus- Chamber and its Membership promote and will con- growth in world trade”. The Chamber disseminated a try sectors aiming to make them more competitive. tinue to advocate for in close cooperation with the “Sector Competitiveness Review” Survey designed Government of Ukraine. based on the OECD methodology and aimed to In 2010 the Chamber was actively involved into the serve as a solid basis for the analysis and prepara- Committee on Economic Reform, established by In 2010 the Chamber was proud to launch a new tion of the policy and reform agenda. Presidential Decree #273 / 2010 dated February Chamber project – the Diplomatic Insiders Club. 26th, 2010 with Mrs. Iryna Akimova, Deputy Head The Diplomatic Insiders Club was designed to be Continuing the active working dialogue with senior of the Administration of the President of Ukraine as a targeted value added forum for employees of the Governmental officials to communicate our policy the Committee’s Executive Secretary. The Chamber Diplomatic Corps and foreign missions in Ukraine. agenda for the benefit of our Membership the Cham- welcomed the unveiling of the Economic Reform 36 Chamber Innovations in 2010

This new initiative brought together the foreign diplo- matic community providing them with a insights and EVENTS INNOVATIONS additional information regarding the international business community’s perspective on Ukrainian polit- ical and economic developments as well as provided MAXI Loyalty Program in the MAXI retail network and redeem such bonuses a networking platform to ensure strong relationships to purchase goods, like paying with cash, in any shop and cooperation within the international commu- of that network you choose. nity. Members of the Diplomatic Insiders Club had a unique opportunity to have additional access to infor- Chamber-MAXI Cardholders enjoyed the use of mation and their colleagues helping them to be even only one card to collect bonuses from all MAXI more successful in their assignment in Ukraine. partners and spend them as money in any shop of In 2010 American Chamber of Commerce in Ukraine MAXI partners as well as discounts from their fellow The Chamber hosted the Diplomatic Insiders Club (Chamber) Membership Cards were enhanced to Chamber Members. meetings on a monthly basis and each meeting was provide additional value added functionality. The devoted to a specific topic presented by a market Chamber was collaborating with the first multi-brand For the list of MAXI program participants please con- insider and the meeting will be followed by reception loyalty program in Ukraine - MAXI. MAXI Program al- tact MAXI Call Center at +38 (044) 590-0805 or check with complimentary beverages and snacks. lows for the collection of bonuses whenever you shop their web-site at www.maxicard.ua

Considering the importance of a steady business- Chamber COI Event governmental dialogue within the logistics industry “Corona’s Mexican Fiesta” with a focus on the development of infrastructure, transport, and communication, the Chamber has supported Chamber Members’ initiative to establish a new Logistics and Transportation Committee.

The new Chamber Logistics and Transportation Committee provided an opportunity for shipping and logistics companies, express delivery carriers, FMCG companies and retail chains to exchange in- formation and experience on a variety of issues that are currently impacting their businesses, discuss fu- ture business planning models as well as to agree on priority issues for the industry.

The creation of the Chamber Logistics and Trans- portation Committee and its mission was discussed during the special Chamber Logistics and Transpor- tation Leaders Business Breakfast. 37 Chamber Innovations in 2010

Joint Events with Business Clubs ed associations to collaborate for making new busi- and Organizations ness contacts, Networking and sharing opinions on recent news in politics and economy. In 2010 the Chamber together with Association of the French Business Community in Ukraine, British Ukrai- Chamber “Endless Summer” nian Chamber of Commerce (BUCC), Delegation of Beach Party German Economy in Ukraine, Dutch Business in Kyiv, International Polish Business Association, Internation- In 2010 the Chamber was happy to launch a new al Turkish Ukrainian Businessmen Association, Swed- event for Chamber Membership Card Holders. All ish Ukrainian Business Club (SUBC), Ukraine-Japan guest got together to rock ‘n’ roll the night away at Centre (UAJC) held a series of Business Networking the new exclusive Chamber “Endless Summer” Cocktails. These events gave a great opportunity for Beach Party event with special guest Sergiy Ko- both Chamber Members and Members of above list- stetskiy who provided a dancing workshop.

Endless Summer Beach Party First Chamber Karaoke Contest New Chamber Teambuilding Event Karaoke Contest

The Chamber was excited to invite Chamber Mem- bers to join our First Karaoke Contest that took place in Gourmet Club Member Pavlin Vocal Res- taurant. The Chamber organized a fun Networking event where everyone showed off their singing and performing talents.

The winners of the First Chamber Karaoke Contest were: 1 place — Team UNIQUE (UniCredit Bank, OJSC) Karaoke King — Sergey Sokolyanskiy (Team Slavu- tich, Slavutich Carlsberg Group) Karaoke Queen — Tetyana Kaplina (Team UNIQUE, UniCredit Bank, OJSC) Best Alternative and Creative Team — Team Sla- vutich (Slavutich Carlsberg Group) 38 Chamber Innovations in 2010

COMMUNICATIONS INNOVATIONS

ChamberUnite Chamber in Social Media

ChamberUnite is valued as one of the promotional Understanding the necessity to use as wide a vari- tools enabling each Chamber Member Company to ety of possible ways to communicate properly to the position itself at the summit level and constantly be on Membership and the wider stakeholders, the Cham- the top of mind of a diverse and reputable Chamber ber started utilizing communication opportunities business community. provided by corporate social networking platforms.

Starting the next era of very popular, highly pro- All Chamber Members are welcome to join the fessional and innovative Chamber Business Chamber via most recognizable and reputable so- Networking services, the Chamber in conjunc- cial networks (Facebook, LinkedIn, Twitter) in order tion with Visage has designed ChamberUnite to interact and foster collaboration. (CU) — online Business Networking System for the employees of companies who are Mem- Aiming to highlight the most significant issues im- bers of the American Chamber of Commerce in portant for international business and investment Ukraine. ChamberUnite (www.chamber.ua/cu) community and the broader Ukrainian society, the is a very cool on-line world where you can learn Communications Team of the American Chamber more about Chamber Member companies, what of Commerce decided to launch new information they offer, how they can be helpful to make your platform open for the public, called Chamber Blog business more successful, find new business (www.blog.chamber.ua). opportunities and meet new friends. Within the framework of the blog, the Chamber Pres- ChamberUnite contains both individual employee ident and most influential experts of our community and corporate profiles. Initially the Chamber Commu- are sharing their knowledge and expertise on hot nications Team has created a profile for each Member and mission-critical issues, engaging a wider public company by completing the basic information that the for a discussion. Chamber has received from Member organization in the past which is to be constantly updated by wide range of options provided by CU: Chamber in Social Media

• Writing in a Corporate Blog Understanding the necessity to use as wide a vari- • Notify and invite Chamber members about the im- ety of possible ways to communicate properly to the portant event Membership and the wider stakeholders, the Cham- • Adding galleries etc. ber started utilizing communication opportunities 39 Chamber Innovations in 2010 provided by corporate social networking platforms. The new half year Competitiveness Partnership Chamber Bi-lingual Website All Chamber Members are welcome to join the Update is to be present to the public in January- Chamber via most recognizable and reputable so- February 2011 aiming to highlight the develop- In 2010, the wide variety of information on Chamber cial networks (Facebook, LinkedIn, Twitter) in order ments in target sectors of Ukrainian economy, events and activities continues to be for both Ukrainian to interact and foster collaboration. focusing on reform of taxation system and ac- and English speaking audience with the help of the op- complishments in a legislation reform agenda to timized and upgraded bi-lingual web site. The Chamber Aiming to highlight the most significant issues im- ensure Ukraine improves its global rankings of in- Communication Team is constantly adding new services portant for international business and investment vestment attractiveness. and tools, improving the design to make the Chamber’s community and the broader Ukrainian society, the highly trafficked website even more user friendly. Communications Team of the American Chamber of Commerce decided to launch new information Chamber Corporate Film platform open for the public, called Chamber Blog Interfax Morning News (www.blog.chamber.ua). As a part of overall Chamber’s mission to promote Ukraine as European country open for invest- Interfax Morning News is a professional publication Within the framework of the blog, the Chamber Pres- ments, the Chamber in conjunction with Cham- sent to the entire Membership everyday in order to ident and most influential experts of our community ber Member PSB Films has created a targeted inform Members on the most significant changes in are sharing their knowledge and expertise on hot corporate video on doing business in Ukraine, as national political and economic environment, as well and mission-critical issues, engaging a wider public well as on how the Chamber advocates for posi- as to highlight Chamber’s involvement into the pro- for a discussion. tive changes in the business environment and fa- cess of relative decision making aimed at protecting cilitates business communication between busi- the interests of the Membership. ness people. Partnership for Successfully The Chamber has partnered with Interfax Ukraine and Competing in the Global Economy The Chamber Corporate Film is aimed at sup- finds this media source both powerful and reliable in dis- porting Ukraine’s image as an investment des- seminating important Chamber policy priorities. Infor- “Partnership for Successfully Competing in the tination and highlighting the professional ex- mation provided through Interfax immediately reaches Global Economy” is a special analytical working prod- perience of individuals who are high-powered all Ukrainian media. The Interfax-Ukraine News Agency uct of the Chamber developed in conjunction with the representatives of the international business — a company belonging to the international group Inter- Chamber Board of Directors, Committees and Working community. fax Information Services — has been a provider of infor- Groups in conjunction with numerous respected ana- mation in the political and economic information market lysts and experts with the primary goal to join key policy The Chamber Corporate Film is to be delivered of Ukraine since 1992. makers and the private sector in building a strong and by the Chamber Leadership within the format competitive Ukrainian economy that will help to navi- of most significant public events, international gate the current financial turbulence and ensure that conferences, as well as promoted under rela- Ukraine is well positioned when economic recovery tive Chamber information resources in order to and growth trends begin. The first three versions of the ensure the well positioning of the Chamber and Partnership were issued in April and November 2009, the community it represents on the highest level while the most recent one – in June 2010. possible. 40 Communication Activities

Communications Activities

41 Communication Activities

In 2010, the American Chamber of Commerce in In the current marketplace an effective Networking itors and employees of foreign embassies in Ukraine; Ukraine (Chamber) has continued the ongoing de- platform is crucial to build business relationships and Ukrainian embassies abroad, representatives of inter- velopment of professional and targeted external the Chamber is pleased to be a leader in providing national organizations; members of leading business communications for the benefit of the Membership such a platform. The Chamber is proud to contin- associations, airlines, participants of trade and indus- and attracting additional interest in Ukraine among ue the long-lasting and beneficial cooperation with trial exhibitions and conferences. Every issue of UJBL both investors and influential policy makers. What’s ON. Chamber Networking events have been in 2010 contained a Chamber News page, where the covered in the Kyiv Life section of the magazine, activities of the Chamber Committees were highlight- Main targets of the Chamber’s External Communi- promoting a variety of Chamber professional events, ed. The Chamber is pleased to have had such a won- cations Activities continue to serve its advocacy and stressing the importance of the Networking platform derful opportunity to update the international commu- communication strategy, namely: that the Chamber is successfully providing to its nity in Ukraine on its important Policy activities. • Highlighting and communicating key Chamber Membership. The Chamber is thankful to What’s ON Policy priorities and success stories to the inter- magazine and is looking forward to expanding the The Chamber and UJBL are planning to extend most national and domestic media market players; cooperation with new and creative ideas. productive partnership by increasing areas of cover- • Providing informational support to international events, age within the magazine, basically by highlighting conferences, roundtables, etc. in Ukraine and across Chamber Member Yuridicheskaya Practika Publish- the globe to increase awareness and Ukraine’s com- ing’s “Ukrainian Journal of Business and Law” (UJBL) petitiveness in the global market-place; continued its cooperation with the Chamber in 2010. • Participation of the Chamber President in major in- The Journal’s readers include managers and lawyers ternational events where the Chamber is speaking of leading international and Ukrainian companies; vis- out on Ukraine’s competitive advantages in order to encourage investment and ensure that Ukraine remains an important foreign policy priority. In 2010 the Chamber continued together with Cham- ber Member Open Borders Media its monthly project CHAMBER & MEDIA entitled Chamber News in Business Ukraine as an an- swer to the rapidly changing Ukrainian economic and The Chamber Communications Team’s priorities include political situation that requires new sources of informa- the provision of access to information, resources, con- tion as well as business skills and strategies. The Cham- tacts and business support services to facilitate new in- ber is pleased to contribute to Business Ukraine as an vestment and providing an effective platform for Network- informative and practical English-language publication ing, information sharing and achieving common goals, in order to provide Chamber Members and other read- the Chamber actively and successfully cooperates with ers with up-to-date information on the Chamber Policy, reliable media partners including, but not limited to: Advocacy and Lobbying related activities and other targeted analytical business related information, com- prehensive overview of events and services provided by the Chamber to Members. Business Ukraine is a monthly magazine in English with a print run of 25,000 copies that is distributed throughout Ukraine to key de- cision makers in both business and politics. 42 Communication Activities

CHAMBER AS AN OPINION LEADER FT

Over the years the Chamber has established and The Financial Times (FT) is a British international continue maintaining positive relationships with in- business newspaper. It is a morning daily newspaper ternational and domestic media outlets operating in published in London. The periodical is printed at 24 Ukraine. Chamber President Mr. Jorge Zukoski is of- sites. Its main rival as a daily financial newspaper is ten approached during times of both prosperity and the New York City-based Wall Street Journal, which growth as well as times of political and financial tur- also publishes several international editions. moil with a request to provide professional and unbi- ased feedback on what the strategic and institutional investors are thinking and how issues will impact the internationally oriented investment community. The INTERFAX issues raised vary and Mr. Zukoski remains a reliable partner for reputable media resources. Chamber has partnered with Interfax Ukraine and finds this media source both powerful and reliable in The Chamber Board of Directors and Policy Team disseminating important Chamber policy priorities. continued to be involved in a proactive dialogue Information ran through Interfax immediately reach- with many Ukrainian State officials ensuring that the es all Ukrainian media. The Interfax-Ukraine News Membership received value added tangible and Agency - a company belonging to the international successful advocacy solutions. Throughout the year group Interfax Information Services — has been a the Chamber worked closely with the Committee of provider of information in the political and economic Economic Reforms under the President of Ukraine. information market of Ukraine since 1992. The Chamber Policy Team was actively involved in 4. First Business Channel: specialized business TV, different Public Councils under the Prime Minister The Chamber is pleased to be working with and to which broadcasts business news and analytical re- and other Ministries, in the Expert Councils orga- be quoted by the following Ukrainian media: views. The Channel is broadcasted in Ukraine (90% nized by the Parliamentarian Committees. of cable networks) Eastern and Central Europe. 1. Delo: nationwide publication, published in Kyiv, 5. Focus: weekly magazine dealing with the most im- The Chamber is pleased to be working with Zaporizhzha and Lviv, providing reviews of business- portant events in Ukraine and worldwide. Magazine and to be quoted by the following international processes, developments in economy, politics, cor- contains comments of experts and photos. Dis- media: porate sector, etc. seminated in 40 towns of Ukraine. 2. Delovaya Stolitsa: all-Ukrainian weekly publica- 6. InvestGazeta: all-Ukrainian finance-economic Reuters Group Limited is a British based news tion. Main topics cover economy, finance, infra- weekly magazine, which contains news of finance service and former financial market data provider structure, companies, markets, etc. and fund market, information on activity of compa- that provides reports from around the world to news- 3. Economichna Pravda: electronic media, devoted nies, banks; analytical reviews, ratings, practical rec- papers and broadcasters. News reporting once ac- to business and economy. Mission of the project is ommendations on management and marketing. counted for less than 10% of the company’s income. to support transparency of power, implementation 7. Kommersant: publication delivers objective infor- Its main focus was on supplying the financial markets of market economy principles in Ukraine and mini- mation on developments in business, politics, soci- with information and trading products. mization of state control. ety, culture and sports. 43 Communication Activities

8. Kontrakty: publication provides analyses of ma- 15. 24 Channel: first Ukrainian news channel. Mission jor business developments in columns “Money”, of the channel is to deliver objective and nonpartisan “Sphere of Influence”, “Companies and Markets”, broadcasting of news and important information. “Business Secret”, “Histories of Successes and Fail- 16. RBC Ukraine: independent Ukrainian information ures”, “Career of a Company”, “Manager’s Career”. agency, specializing on finance, economy and po- 9. Commentarii: investigates interconnections be- litical news from Ukraine, CIS and EU. tween different events, people, businessmen, pro- viding analytical reviews and forecasts. 10. LigaBusinessInform: business portal including INFORMATION SUPPORT news, analytics and services for business. 11. “Po-Kievsky” Newspaper: local Kyiv newspaper, The American Chamber of Commerce is pleased to dealing with the capital’s life, events trends. actively support and promote international forums 12. Ukrainian Business Resource: business news and conferences organized by leading international In 2010 the Chamber took part in the 2010 Emerg- from Ukraine and the world. institutions which promote Ukraine as an investment ing Markets Summit (London, UK), a rich, focused 13. Ukrinform: news agency producing more than 500 destination and provide participants with access to and interactive debate for over 300 senior execu- news in Ukrainian, Russian, English and German, as decision makers both within the business commu- tives and business leaders from around the world. well as around 200 photos a day. nity and among policy makers. 14. UNIAN: information agency which provides political Adam Smith Conferences and the Chamber have Throughout 2010, American Chamber of Commerce and economic news on the main proceedings in the in Ukraine supported and participated in the follow- capital and regions of Ukraine. enjoyed a longstanding history of successful coop- eration and the Chamber is pleased to support and ing meetings, events: participate in their well-organized high-quality events. The Chamber successfully worked with Adam Smith • The X Lviv International Economic Forum “Cross Institute in their II Annual Ukrainian Pharmaceutical Border Cooperation. Looking Into the Future” Forum, III Annual Banking Forum, II Annual Ukrainian held under the patronage of the President of Insurance Forum and other events. Ukraine Viktor Yanukovych. On October 7th the President of the American Chamber of Com- Economist Conferences, a division of the Econo- merce in Ukraine, Mr. Jorge Zukoski took part in mist Intelligence Unit, is the leading provider of in- the opening plenary session of the Forum. ternational forums for senior executives seeking • Adam Smith Conferences: 5th annual UKRAI- new insights into strategic issues. These meetings NIAN BANKING FORUM (Kyiv, Ukraine) On include industry conferences, management events November 16th the Chamber President Jorge and government roundtables held around the world. Zukoski moderated a CEO Panel Session: Ukrai- Each meeting organized by Economist Conferences nian Banking Industry Leaders Look To the delivers objective and informed analysis. The meet- Future – providing strategic insights from the ings provide unusually high-level forums where se- most dynamic bankers in Ukraine. nior executives can gain insights, exchange views • Black Sea Economic Forum 2010 and compare strategies. • Ukraine Investors’ Summit 2010 44 Chamber Advocacy and Lobbying Activities

General Membership Meeting “Ukraine – On the Road to Stability through Reforms” with Ambassador Jose Manuel Pinto Teixeira, Head of the Delegation of the European Union to Ukraine Chamber Advocacy and Lobbying Activities

45 Chamber Advocacy and Lobbying Activities

UKRAINIAN GOVERNMENT RELATIONS

The American Chamber of Commerce in Ukraine vorable environment business be able to grow, hire In 2010 the advocacy and policy activity priorities (Chamber) philosophy and operations in Ukraine more employees, and find new customers, vendors of the American Chamber of Commerce in Ukraine have always been guided by the simple symbiotic and partners, which lead to information and tech- (Chamber) were focused on addressing issues re- relationship: only in a prosperous, strong and fa- nology dispersion and greater benefit to Ukraine. garding identifying opportunities for strengthening competitiveness of the Ukrainian economy, includ- ing but not limited to:

• Euro-2012; • Energy Independence; • Rule of Law; • Tax Reform and improvement of VAT Administration; • Healthcare Reform: • Financial Market Development; • Customs Reform; • Anti-corruption Policy.

As an organization that strives to be a reliable partner for the Ukrainian Government in the sphere of investment and economic policy, the Chamber together with its Board of Directors and Member Companies, who are leaders in different industry sectors, united efforts of relevant Gov- ernment agencies, the private sector as well as experts from non-governmental organizations to focus on developing and strengthening the com- petitiveness of Ukraine.

In 2010 the Chamber Board of Directors and the Policy Team continued to be involved in a proactive dialog with many Ukrainian State officials ensuring that the Membership receives value added tangible and successful advocacy solutions. The Chamber Ambassador Sapiro, Deputy U.S. Trade Representative during the Chamber and USUBC Business Breakfast worked diligently to establish new relationships 46 Chamber Advocacy and Lobbying Activities

In 2010, the Chamber participated in many important • Mr. Mykhailo Brodsky, Head of the State events and hosted meetings with many Ukrainian and Committee for Regulatory Policy and Entrepre- foreign State officials and experts. The following indi- neurship viduals interacted with the Chamber and are listed in • Mr. Oleh Povolotsky, Head of the State Com- order of appearance starting from January 2010: mittee of Ukraine for Technical Regulation and Consumer Policy • Mr. Petro Poroshenko, Minister of Foreign Af- • Mr. Mykola Azarov, Prime Minister of Ukraine fairs of Ukraine • Ms. Tetiana Iefymenko, Deputy Minister of Fi- • Ms. Kseniya Liapina, Peoples’ Deputy of nance of Ukraine Ukraine • Mr. Sergiy Lekar, Deputy Head of the State Tax • Mr. Oleh Gumenyuk, Deputy Head of the de- Administration and other representatives of the partment on Copyright and Related Rights at the State Tax Administration State Department of Intellectual Property, Minis- • Mr. Oleg Voloshyn, Director of the Information try of Science and Education Policy Department of the Ministry of Foreign Af- • Mr. Sergiy Tereshchenko, Honored Economist fairs of Ukraine, Meeting with Prime Minister of Ukraine of Ukraine, Head of the Department of the State • Mr. Oleksiy Turgan, the First Secretary of Mr. Mykola Azarov Scientific Research Institute of Customs Affairs of Visa Support Division in the Consulate De- partment, of the Ministry of Foreign Affairs of as well as to develop existing ones with the top the State Customs Service of Ukraine; Ukraine figures of both executive and legislative branches • Mr. Max Alier, IMF Resident Representative in • Mr. Oleksiy Palamarchuk, Deputy Head of of power. Cabinet of Ministers of Ukraine, many Ukraine; Department of Border Control and Registration, Ministries and state Committees, selected com- • Mr. Volodymyr Fesenko, Head of the Center of State Border Guard Service of Ukraine; mittees of Ukrainian Parliament, Administration of Political Researches “Penta”; President of Ukraine, Regional State Administra- • Mr. Vitaliy Portnikov, Political Observer, Radio • U.S. Ambassador John Tefft; tions – the Chamber was working closely with all Liberty; • Mr. Valeriy Pyatnytskyi, Deputy Minister of of them addressing those issues and problem ar- • Mr. Andriy Yermolaev, President of the Center Economy of Ukraine eas that generated the greatest concern from the of Social Research “Sofia”; • Mr. Mykhailo Rusynskyi, Deputy Minister of Membership and which the Chamber was able to • Mr. Stanislav Gorbatovych, Head of the De- Economy of Ukraine positively influence through active and targeted partment of Land Market and Land Appraisal, • Ms. Oksana Kordina, Head of the Division advocacy and lobbying efforts. State Committee of Land Resources of Ukraine on Analysis of the Ministry of Economy of Ukraine; Throughout the year the Chamber Membership • Mr. Volodymyr Oliynyk, the Head of the Na- • Mr. Oleksiy Kostusev, Head of the Antimonop- was provided with a wide variety of opportunities tional Commission for Communications Regula- oly Committee of Ukraine; to engage in a positive dialogue with key decision tion in Ukraine makers within the Ukrainian Government through • Mr. Vasyl Volga, Head of the State Commission • Mr. Maksym Melnychuk, Deputy Minister of Chamber Committees and Working Group Meet- on Financial Service Markets Regulation Agrarian policy of Ukraine; ings, General Membership Meetings, “In-Focus” • Mr. Kostyantyn Gryshchenko, Minister of For- • Mr. Grygoriy Kaletnik, Head of the Parliament and “Insiders’ View” meetings. eign Affairs of Ukraine, Committee on Agrarian Policy; 47 Chamber Advocacy and Lobbying Activities

• Mr. Vladyslav Kaskiv, People’s Deputy of The American Chamber of Commerce in Ukraine to facilitate the entrance of the new investors into Ukraine, Head of the Working Group On Na- (Chamber) as an organization representing the larg- Ukrainian market through linearization of the national tional Projects of the Committee on Economic est strategic and institutional investors, who have business environment and improvement of the cur- Reforms, committed a majority of the foreign direct invest- rent legislative framework. • Mr. Sergyi Yevtushenko, Head of the State ment into the market place, remains committed to Agency of Ukraine for National Projects; assist the national Government in fully developing The Chamber is an active Member of the Commit- • Ambassador Jose Manuel Pinto Teixeira, the potential of the economy by advocating for com- tee of Economic Reforms under the President of Head of the European Commission Delegation prehensive legislative and regulatory reform to allow Ukraine Victor Yanukovych and supports the con- in Ukraine; Ukraine becoming more competitive and innovative cept for intensive and comprehensive reforming of • Mr. Anatoliy Skorchenko, Deputy Minister of European country enabling the attraction of much all spheres of economy in Ukraine. The Chamber Agrarian Policy of Ukraine; needed domestic and foreign investment. involved interested Chamber Member Companies into the Regional Economic Development Working • Mr. Igor Kalyetnik, Head of the State Customs In 2010 the Chamber utilized different advocacy Group that allowed providing comments and feed- Service of Ukraine; venues on both national and regional levels aiming back regarding many important reforms. • Mr. Vitaliy Khomutynnik, Head of the Parlia- mentary Committee on Taxation and Customs Policy; • Mr. Volodymyr Ignashchenko, First Deputy Minister for Environmental Protection; • Mr. Oleksandr Zavadiak, Deputy Head of State Department on Bankruptcy; • Mr. Sergiy Siomka, Deputy Head of the State Customs Service; • Mr. Volodymyr Zharov, First Deputy Head of the State Department on Intellectual Property (SDIP), Ministry of Education and Science of Ukraine; • Mr. Sergiy Ivashchuk, Director of Department of Foreign Economic Cooperation, Ministry of Agricultural Policy; • Mr. Leonid Pirozhkov, Director of Department of Cooperation with the EU, Ministry of Economy of Ukraine; • Mr. Volodymyr Korniyenko, First Deputy Min- ister of Transport and Communications; • Mr. Anatoliy Kolisnyk, Deputy Minister of Trans- port and Communications of Ukraine Chamber In-Focus Meeting with Mr. Viktor Yanukovych 48 Chamber Advocacy and Lobbying Activities

of small and medium business from major of the re- ated Expert Council on WTO and Creation of the Free gions of Ukraine as well as officials from the Ministry of Trade Zone with the European Union. The Council Economy, the State Tax Administration and the State was initiated by Viacheslav Pyatnitskiy, Deputy Minis- Customs service. The main focus of the meeting ter of Economy in order to create a solid platform for was on the future of the simplified taxation system in experts and business community representatives for Ukraine that is utilized by dozens of thousands small open and professional discussion and elaborating of and medium enterprises all over Ukraine. recommendations for the Government of Ukraine re- garding proper fulfillment of obligations that Ukraine On Wednesday, May 5th the Chamber Leadership and took after accession to WTO. Members of the Chamber VAT Working Group partici- pated in a special meeting with Mr. Fedir Yaroshenko, The Chamber received an invitation to participate in Minister of Finance devoted to the situation with VAT the work of the Ministry of Finance on the finalization reimbursement and the decision of the Government of the Draft Tax Code. The Chamber Policy Team was to solve the enormous problem of overdue legitimate included into the special Working Group created with VAT refunds to exporters by issuing Government Do- participation of relevant officials and experts from the Chamber "In-Focus" Meeting with Mr. Vitaliy mestic Loan Bonds (GDLB), that is envisaged by the Ministry. The Draft Tax Code has been in develop- Khomutynnik, Head of the Parliamentary Committee Law of Ukraine “On 2010 State Budget”. From June ment for nearly for 10 years and has constantly been on Taxation and Customs Policy and Ms. Tetyana through August the American Chamber of Commerce on the radar screen of the Chamber. The Chamber Iefymenko, Deputy Minister of Finance of Ukraine in Ukraine has been proactively involved into finding a Policy Team in conjunction with the relevant Cham- On May 27th, 2010 the Chamber representatives resolution to the ongoing problem of the accrual of sig- ber Committees and Working Group built working participated in the special meeting of the Council of nificant amounts of non-reimbursed VAT that has had partnership with the Cabinet of Ministers of Ukraine Regions under the chairmanship of Ukrainian Presi- a negative impact on the solvency and profitability of to coordinate work on the Draft Tax Code. dent Viktor Yanukovych. The meeting was attended by Chamber Member companies as well as the invest- Verkhovna Rada Chairman Volodymyr Lytvyn, mem- ment climate and rural development in Ukraine. On Wednesday, June 29th the Chamber Policy Team bers of the Cabinet of Ministers, the heads of most was involved into discussion organized by Mr. Sergiy regional administrations, in particular, Kharkiv re- The Chamber Policy Team along with specialists Tigipko around the Draft Law of Ukraine “On Amend- gional governor Mykhailo Dobkin and chairman of the from Chamber Member Companies as well as our ments to Certain Laws of Ukraine” (regarding pro- Council of Ministers of Crimea Vasyl Dzharty, and city partner organizations conducted a focused and tection of creditors’ rights), developed by the Asso- mayors, including Kyiv Mayor Leonid Chernovetsky as proactive advocacy and lobbying campaign on ciation of Ukrainian Banks together with the National well as the head of Lviv Regional Administration Vasyl this issue preparing and presenting a number of Bank of Ukraine. The Draft was prepared within the Horbal. The meeting was focused on the creation of documents explaining our concerns and providing cooperation with the World Bank Project “Second the mechanisms of attraction of foreign investments recommendations in regards to rapidly increasing Program Loan on Financial Sector Rehabilitation”, to the Ukrainian economy on the regional level. VAT refunds arrears in Ukraine clearly articulating which particularly envisages the legislative regula- the position of the internationally oriented busi- tion of the problematic issues of realization of credi- On Friday, May 21st the Chamber Policy Team partici- ness community. tors’ rights protection. pated in the meeting of the Members of the Entrepre- neurs’ Council with Sergiy Tigipko, Vice Prime Minis- In 2010 the Chamber was invited by the Ministry of On Thursday, July 1st the Chamber Policy Team ter of Ukraine. The meeting gathered representatives Economy of Ukraine to participate in the newly cre- participated in the meeting devoted to the draft 49 Chamber Advocacy and Lobbying Activities

legislation that came from the Ministry of Economy • On the Draft Law #5507 “On Limited Liability nal and amendments to the Order of the State of Ukraine “On Amendments to Certain Laws of Companies” (the Parliament) Customs Service of Ukraine (Ministry of Finance, Ukraine regarding the Improvement of the Bank- • On the Concept of the stock market develop- State Customs Service of Ukraine). ruptcy Procedures”. ment and functioning in Ukraine (the Parliament) • On the Draft Law #3062 “On Amendments to Law • On the abolishing of obligatory certification of food of Ukraine “On Prevention and Counteraction of In July the Chamber was invited by the Ministry of products except for certification of food products Legalization (Laundering) of Illegally Obtained Economy of Ukraine to head the Working Group on for children and adoption of Cabinet of Ministers Profits” (Ministry of Finance, the Parliament). EURO 2012 within the Public Council under the Min- of Ukraine (CMU) Regulation “On Abolishing of • On the Draft Law on Internal Trade (Ministry of istry. On Tuesday, July 6th the first meeting of the Work- Certain Items of the List of Products which are the Economy of Ukraine) ing Group was held with participation of Mrs. Oksana Subject for Obligatory Certification” (the Cabinet • Regarding the situation in the waste packaging Gryshkevych, Director of the Department on EURO of Ministers of Ukraine, the State Committee for management sector (Prime-Minister of Ukraine); 2012 of the Ministry of Economy of Ukraine. Also in Technical Regulation and Consumer Policy) • On negative impact of the State Sanitary Norms July the Chamber Policy Team received invitation and • On Generalizing Tax Clarification regarding roy- and Rules “Hygienic Requirements for Potable has joined the Coordination Council on Agricultural alties and license payments during the customs Water Intended for Human Consumption” intro- Policy under the Cabinet of Ministers of Ukraine. clearance (Ministry of Finance, State Customs duced by the Order #400 of Ministry of Health- Service of Ukraine). care of Ukraine on Chamber members activity On September 22nd the Chamber was pleased to • On the Draft Law of Ukraine “On Amendments stressing the need for their abolishment (Prime participate in Parliamentary Hearings “Economic to Certain Legislative Acts of Ukraine” , that sug- minister of Ukraine); Reforms: Reality and Expectations of the Ukrainian gested to significantly increase some taxes and Business”, organized by the Committee on Industrial • On negative influence of the Draft Resolution of the tariffs for manufacturing companies. The Draft and Regulatory Policy and Entrepreneurship attend- Cabinet of Ministers of Ukraine “On Approval of the Law actually provides changes to the Law of ed by People’s Deputies, Government representa- Procedure for Conducting State Analytical Study of Ukraine “On Corporate Profit Tax” #334/94-BP tives, business community and NGOs. Plant Protecting Agents Regarding their Conformity dated December 28th, 1994 and other legisla- In 2010, the Chamber addressed the Cabinet of with the Certificates of Quality that are Imported to tion (Ministry of Finance, the Parliament). Ministers, Presidential Secretariat, and Parliament the Territory of Ukraine” expressing necessity of im- of Ukraine and other Governmental institutions with • On Rules of Determination of Enterprises for proving the Draft Resolution on business activity many important issues including but not limited to: Simplifying Procedures during the Customs (Ministry of Agrarian policy of Ukraine, State Com- Clearance and for the Customs Control and on mittee for Regulatory Policy and Entrepreneurship); Criteria of Enterprises’ Appraisal for Simplify- • On Obligatory GMO Labeling for the food prod- • Regarding the situation that the State Customs ing Procedures During the Customs Clearance ucts and regarding Informing on GMO Compo- Service of Ukraine has suspended the customs and for the Customs Control (the State Customs nents in Products (Ministry of Economy and the registration and departure of ships with grain from Service) Parliament). Ukrainian ports (Mr. Mykola Azarov, Prime Min- • On transparent and in-time legitimate reimburse- ister of Ukraine, Mr. Sergiy Tigipko, Vice Prime • On the new approaches regarding the Taxation of ment of value added tax (VAT) ( the Prime-Minis- Minister and Mr. Mykola Prysiazhniuk, Minister of Foreign Individuals in Ukraine (the Prime Minister, ter of Ukraine, Minister of Agricultural Policy). Agricultural Policy); the State Tax Administration) • On illegal acquisition of enterprises. (Ministry of • On supporting adoption of the Draft Law of • Order on On-Site Inspections (Head of the State Finance, the Parliament). Ukraine #1415 of “On Packaging and Waste Committee for Veterinary Medicine and the Min- Packaging” (Factions of the Parliament). ister of Economy of Ukraine) • On Liquidation of the “Excise” Customs Termi- 50 Chamber Advocacy and Lobbying Activities

UNITED STATES GOVERNMENT RELATIONS

Since 1992 the American Chamber of Commerce ciations operating in the U.S. and concentrating its companies had personal meetings with appropriate in Ukraine (Chamber) has enjoyed a successful activity on the further development of the Ukraine — Ministers and Deputy Ministers. history of close cooperation with the United States U.S. economic and business relationship. Embassy in Ukraine as well as various U.S. Govern- March 2nd was devoted to building links between ment agencies and lawmakers in Washington D.C. On March 1st through the 3rd the Chamber in con- possible business partners as there was huge inter- This close working relationship has benefited our junction with the U.S. Commercial Service were est from the Belarusian side to establish contacts with Member companies and many partners by providing pleased to invite all interested Member companies foreign companies. Furthermore companies were access to information and input into a wide variety to join the first ever U.S. Trade Mission to Belarus. provided by comprehensive information on the cur- of important policy decisions and initiatives with re- Mission objectives were the following: rent state of the Belarus economy and future trends spect to Ukraine. by Ernst & Young, PricewaterhouseCoopers, and • Learn about Belarus’ economic environment and EBRD. Experts mentioned that the industry sectors business practices The Chamber and the Chamber Board of Directors most open for investments include the banking and held meetings with representatives and leadership of • Explore market demand for your products and financial sector where many of the banks are already the U.S. Government, the Foreign Commercial Ser- services private. Although taxation system in Belarus is quite vice, and a variety of business and Government del- • Identify trade opportunities. complicated (according to the World Bank rating egations of U.S. law and policy makers to provide rel- Belarus has the last 181 place on taxation), experts evant input into the current business environment. The Mission was conducted in close cooperation with underline that taxation policy is very predictable and Belarus Chamber of Commerce. Interested compa- consistent and the level of corruption is very low. As an active Member of the European Council of nies had the opportunity to meet with senior Belaru- American Chambers of Commerce (ECACC), which sian government officials as well as to hold match- In February 2010 the Chamber hosted a spe- unites Chambers from all of the European countries, making sessions with Belorussian companies. cial Chamber Knowledge Seminar held within the the American Chamber of Commerce in Ukraine framework of the Chamber’s “Competitiveness of participated in ECACC’s regular meetings in Brus- On March 1st the Chamber participated at the the Ukrainian Economy” Series entitled “OPIC Open sels and Washington D.C. where ECACC Members meeting with Mr. Volodymyr Semashko, First Vice- for Business in Ukraine” highlighting the activities had opportunity to meet with the U.S. and EU officials Prime Minister of Belarus and representatives of key and benefits of working with the recently re-opened as well as other senior decision makers discussing Ministries. Mr. Semashko thanked the Chamber for Overseas Private Investment Corporation. many policy, economic and investment related is- helping investors to research the Belarus market sues aimed to further develop trade and investment and declared interest from the Government to attract Guest speakers included John Didiuk, Peter Ball- relations in these countries. foreign direct investments. Among steps mentioned inger and Meredith Baker who are OPIC repre- by First Vice-Prime Minister Semashko is to improve sentatives from Washington DC who discussed Throughout the year the Chamber held many meet- investment attractiveness of Belarus through the the products and services offered by the Overseas ings with different Government and policy-related creation of special economic zones with tax pref- Private Investment Corporation to help business be organizations from the U.S. as well as kept produc- erences, plans to privatize state assets, as well as successful in this challenging market as well as an- tive and partner relations with fellow business asso- improvements in corporate legislation. Interested swer questions. 51 Chamber Advocacy and Lobbying Activities

OPIC has restored its programs in Ukraine, fol- pation of US private capital and skills in the economic The Chamber was pleased to host a special guest- lowing the signing on December 16th, 2009 of an and social development of less developed countries speaker during the first meeting of this new series agreement with Ukrainian State authorities. “OPIC and areas, and countries in transition from nonmarket of events — U.S. Ambassador John Tefft, who is pleased to once again make available its sup- to market economies. OPIC assists US companies by agreed to comment on his recent appointment, pri- port for U.S. investment in Ukraine, a development providing financing (from large structured finance to orities and expectations, as well as to highlight the which we anticipate will send a highly positive signal small business loans), political risk insurance, and in- following: to prospective investors in the country,” said OPIC vestment funds. OPIC complements the private sec- Acting President Dr. Lawrence Spinelli. “This historic tor in managing risks associated with foreign direct • The overall perception of the United States of occasion is indicative of Ukraine’s ongoing efforts to investment and supports US foreign policy. the 2010 Presidential Elections and expectations improve its investment climate, and we commend from the new Ukrainian President and the Gov- the Ukrainian government for its hard work in bring- In 2010 the Chamber was excited to launch new se- ernment focusing on economic reform agenda ing about this result. We look forward to working with ries of meetings with senior diplomats, national gov- and re-engagement with the IMF as well as the both U.S. and Ukrainian businesses to facilitate new ernment and opposition leaders entitled “Ukraine – other IFIs; levels of American investment in Ukraine.” On the Road to Stability through Reforms” that shed • What the U.S. is doing to assist in the reform pro- light on the current political and economic affairs in cess and the priorities for the U.S. government in OPIC is an independent U.S. government agency Ukraine with a focus on the impact on the business that regards; whose mission is to mobilize and facilitate the partici- and investment environment. • General trends and perspectives of U.S.-Ukraine relations and the way they might be influenced Chamber General by the both recent Presidential Elections and Membership Meeting changes in the Government. "Ukraine – On the Road to Stability through Reforms" On October 14th the Chamber in conjunction with with U.S. Ambassador the Ministry of Economy of Ukraine invited all inter- John Teff t ested Chamber Members to take part in the 3rd Ukrainian — American Business Forum which took place at the Ukrainian Chamber of Commerce.

The agenda of the forum highlighted policy related issues important for the business community oper- ating in Ukraine and included the following items: Importance of overall competitiveness of the na- tional economy; Adoption of the efficient and fair Tax Code and as a result realization of the tax re- form in Ukraine; VAT Administration in Ukraine; Alignment of Ukrainian Customs Policy with EU Norms, perspectives of adoption modern Customs Code; Revision of Ukrainian Technical Regulations to Improve Trade Flows. 52 Chamber Advocacy and Lobbying Activities

presence of MEPs, national Permanent Repre- On March 3rd we took a look ahead at what EUROPEAN UNION RELATIONS sentatives and U.S. Embassy staff. During the the next ten years will bring to the transatlantic evening the Chamber leadership had interest- economy with particular focus on Foreign Direct ing conversations with experts and MEPs on Investment (FDI) and green technologies dur- In 2010 the Chamber maintains close working relation- Ukraine’s perspectives to be a member of the ing the fourth Transatlantic Conference with a ships with the EU Commission participating at variety of EU. The main message is that the EU will not stop keynote address from The Honorable William E. the meetings discussing the EU-Ukraine relationship. its enlargement after Croatia, Iceland, Turkey, Al- Kennard, United States Ambassador to the EU. bania, Macedonia, Montenegro and some other Participants of the conference discussed how the On March 2nd through 5th the Chamber leadership countries will join EU. Ukraine should be active in EU and US can work together to elaborate new participated in the annual meeting of the European doing its home work to meet criteria required for standards and norms and remain competitive at Council of American Chambers of Commerce joining the EU. the international level. (ECACC) hosted by the American Chamber of Commerce to the EU. The event provided an inter- esting and intensive program that included Network- Chamber "In-Focus" ing and sharing best practices with colleagues from Meeting with Mr. Valeriy other Chambers in Old Europe, New Europe and Piatnytsky, Deputy Minister those that want to be in Europe as well as interaction of Economy with key policy makers in Brussels. During the first day of the briefing all participants had an opportunity to share views and opinions on the current priorities for the European Chambers and that many issues are the same for most of the organizations that do advocacy and lobbying such as energy efficiency, new labor market regulations, taxation reforms or IPR protection.

Participants were updated on recent changes hap- pening in the EU after the ratification of the Lisbon Treaty and what it means for business as well as on the next EU initiative that now is widely discussed – Europe’s 2020 Strategy. Europe’s 2020 Strategy is the new agenda for the EU countries that primar- ily focuses on a trio of interlinked priorities: growth from knowledge, developing of social standards and building a greener economy. Also, the Chamber leadership participated in the European Parliament Cocktail that launched the Transatlantic Economy Study 2010 in the 53 Chamber Advocacy and Lobbying Activities

In 2010 the Chamber provided support informing In 2010 the Chamber was invited by the Ministry of Econ- Ukraine regarding proper fulfillment of obligations that the Membership and partners about different events omy of Ukraine to participate in the newly created Expert Ukraine took after accession to WTO. held in Ukraine and in European countries related to Council on WTO and Free Trade Zone with the European Members of the Expert Council were actively in- economic and investment issues. Union. The Council was initiated by Mr. Viacheslav Pyat- volved into the consideration and preparation of The Chamber is expanding its partnership network in nitskiy, Deputy Minister of Economy in order to create a recommendations on the ongoing process of nego- Europe and now the EU-Ukraine Business Coun- solid platform for experts and business community rep- tiations with the European Union on the Free Trade cil is among new allies and partners of the Chamber. resentatives for open and professional discussion and Agreement and further Ukrainian integration and as- Together these organizations continue to strengthen elaborating of recommendations for the Government of sociation agreement perspectives. joint advocacy and lobbying efforts and initiatives providing more business networking opportunities for the Members. In 2010 the Chamber continued a proactive dialogue INTERNATIONAL, DIPLOMATIC & DONOR with the key Governmental officials responsible for the Ukraine — EU relationships and held important meet- ings with Ambassador Jose Manuel Pinto Teix- COMMUNITY RELATIONS eira, Head of the European Commission Del- egation; Mr. Kostiantin Gryschenko, Minister of In 2010 American Chamber of Commerce in sights and additional information regarding the in- Foreign Affairs of Ukraine, and many others. Ukraine (Chamber) continued to strengthen val- ternational business community’s perspective on To coordinate direct communication of business ue added and beneficial relationships with many Ukrainian political and economic developments community with relevant governmental institutions of the Embassies in Ukraine, Ukrainian industry- as well as provide a Networking platform to ensure and agencies providing necessary professional as- sector associations and other partners to assist strong relationships and cooperation within the sistance in regards to Ukraine’s successful EU inte- the Membership with the resolution of critical is- international community. Members of the Diplo- gration the Chamber maintained a working dialogue sues impacting their businesses and strength- matic Insiders Club had a unique opportunity to with senior representatives of the Ministry of Economy ening policy initiatives. have additional access to information and their of Ukraine to communicate our policy agenda. The During the year the Chamber met with Ambassadors colleagues helping them to be even more suc- Chamber was pleased to organize a special Chamber and senior officials from many Embassies briefing cessful in their assignment in Ukraine. “In-Focus” Meeting with Mr. Valeriy Pyatnitskiy, them on the most important issues facing the in- Throughout the year the Chamber hosted Diplo- Deputy Minister of Economy of Ukraine. ternational business community. The Chamber as- matic Insiders Club meetings that were devoted Mr. Pyatnitskiy agreed to engage in an active and sisted its partners from Embassies to publicize and to a specific topic presented by a market insider: focused dialog with Chamber Members and will disseminate announcements on educational events Important Ukrainian Tax Issues Affecting Foreign highlight the main directions of the Ministry’s activ- as well as conferences hosted by them. Nationals and Businesses, Financial Turbulence ity focusing on 2010 challenges for the Ukrainian In 2010 the Chamber was proud to launch a new and the Repercussions for Business in Ukraine: economy, investment and economic implications Chamber project – the Diplomatic Insiders Club. Where We Are Today and What the Future May of EU integration, as well as comment upon the dy- The Diplomatic Insiders Club was designed to be a Hold – Opportunities and Risks, Panel Discus- namics of the on-going negotiations on the Free targeted value added forum for employees of the sion on International Financial Institutions in Trade Agreement between Ukraine and European Diplomatic Corps and foreign missions in Ukraine. Ukraine Engagement Strategies – What Lies Union and will touch upon obligations Ukraine took This new initiative brought together the foreign Ahead and What We Are Doing to Assist. after WTO accession. diplomatic community providing them with an in- In 2010 the Chamber was pleased to announce 54 Chamber Advocacy and Lobbying Activities

the first in 2010 Chamber “In-Focus” Meeting On October 29th the Chamber invited all Inter- take the opportunity to learn more about this with Mr. Petro Poroshenko, Minister of Foreign ested Chamber Members to the Chamber Open fascinating country and ways to minimize the Affairs of Ukraine. The meeting took place days Travel and Tourism Committee: Getaway to Mex- hassle of traveling there. after the first round of the Presidential elections ico with Guest Speaker - Mrs. Berenice Rendon, During the meeting Mrs. Berenice Rendon spoke and provided an exciting opportunity to interact Ambassador of Mexico to Ukraine. about the different touristic destinations in Mexico as with leading policy makers. The Meeting was devoted to the issue of travel well as announce a new visa procedure that will al- Continuing the active working dialogue with and tourism to Mexico and visa procedures. All low Ukrainians to obtain an electronic authorization senior Governmental officials involved into for- interested Chamber Members were invited to to travel to Mexico without a consular visa. eign policy decision making the Chamber held “In-Focus” Meeting with Mr. Kostyantyn Grysh- chenko, Minister of Foreign Affairs of Ukraine on Wednesday, June 9th, 2010. The meeting provided another opportunity to interact with a leading international interlocutor for the Ukrai- nian State during interesting political times as the world watched closely. Minister Gryshchen- ko highlighted the priorities for Ukrainian foreign policy and main directions of the Ministry’s ac- tivity under his leadership as well as presented his vision of the current global political environ- ment focusing on investment and economic im- plications of EU integration, the relationship with the Russian Federation and the United States. Members also had an opportunity to ask ques- tions and engaged the Minister during the Q&A session after his presentation.

Chamber In-Focus Meeting with Mr. Kostiantyn Hryshchenko, Minister of Foreign Aff airs of Ukraine 55 Competitiveness Report

Competitiveness Report

56 Competitiveness Report

The American Chamber of Commerce in Ukraine’s the “Partnership for Successfully Competing in the The latest version of Competitiveness Partner- (Chamber) Competitiveness Partnership puts forth Global Economy” (Competitiveness Partnership). ship discusses further strategies for improving the a comprehensive regulatory and legislative reform competitiveness of Ukraine and highlights some agenda created in partnership with relevant stake- The updated version of Competitiveness Partner- crucial reform that needs to be done and initia- holders in the public and private sector who are in- ship has been extended and additional reform tives to be implemented to create a competitive, terested in seeing Ukraine succeed. In 2009 Ukraine agendas have been added. The 2010 Competitive- strong, and stable independent country with a vi- struggled with a serious economic and financial crisis ness Partnership includes the following areas and brant market economy that benefits both the state leaving the country in the midst of a deep recession as sectors: Agriculture; Banking and Financial Ser- and her people. 2010 began. As a response to the changing political vices; Commercial Real Estate and Construction; and economical environment and to take advantage Customs; Fast Moving Consumer Goods (FMCG) Throughout 2010 the Chamber continued to promote of reform opportunities that have recently emerged and Retail; Fuel and Energy; Human Resources the “Partnership for Successfully Competing in the the American Chamber of Commerce in Ukraine and Labor Policy; Information and Communication Global Economy” (Partnership) to ensure the coop- (Chamber) publically launched the 2010 update of Technologies; Travel and Tourism. eration of the investment community and government agencies to move the reform agenda forward.

Professional recommendations and an action plan entitled 10 Tax Initiatives was developed and includ- ed into the Chamber’s “Partnership for Successfully Competing in the Global Economy” and has been submitted to the Ministry of Finance as general recommendations and a basis for development of the Tax Code. It was developed in conjunction with the Chamber Board of Directors, Committees and Working Groups.

The Chamber Policy Team has been working on dis- semination of information about the Partnership to different officials, organizations and allies:

• English and Ukrainian versions of the “Partner- ship” have been sent together with an explana- tory letter to all representatives of the Ukrainian State sector that the Chamber has been working with on relevant policy issues; • The “Partnership” was presented to a wide number of state authorities during special policy meetings Press conference dedicated to presentation of the Chamber’s with the Chamber Leadership. Hard copies have “Partnership For Successfully Competing in the Global Economy” been delivered to the Embassies, NGOs, IFIs. 57 Competitiveness Report

• A special ‘corner’ on the Chamber’s website Recently the following legislation has been adopted Moreover, it is suggested to implement the payment about the “Partnership” has been updated and that was identified in the Partnership as necessary of the unified social contribution for compulsory is now available in two languages highlighting all for further successful reforms: state social insurance (from January 1st, 2011) and relative updates and developments; its division by the State Treasury to centralized ac- • Competitiveness Partnership banners have been • Law “On Basics of Natural Gas Market counts of the social insurance funds. placed on the sites of Chamber’s partner organi- Functioning”. zations: • Law “On Amendments to Certain Legislative Acts The adoption of the Law is linked to the realization of — Association of the Tax Consultants of Ukraine on Product Sharing Agreement”. commitments which were foreseen by the Partnership — Public Council under the Parliamentarian Com- • Law “On Public Private Partnership”. for Successfully Competing in the Global Economy, par- mittee for Tax and Customs Policy • Law “On Judiciary System and Status of ticularly in the Action Plan for the Legal sector (amend- ing the Law “On Duties for State Pension Insurance”). — The Entrepreneurs Council under the Cabinet of Judges”. Ministers of Ukraine • Law “On Unified Social Taxation” — State Customs Service Public Council • Law “On Amendments to Some Legislative Acts — IT Association regarding Hotel Infrastructure Preparation for • The Chamber received positive responses and en- EURO 2012” dorsements regarding the Partnership from: Par- • Law “On Amendments to the Law of Ukraine “On liament Committee for Banking and Financial Ac- Radio-frequency Resource of Ukraine” (regard- tivities, State Committee for Regulatory Policy and ing the authority of the National Commission for Entrepreneurship, State Committee for Financial Communication Regulation (NCCR)”. Monitoring, State Tax Administration, Ministry of • Law “On Amendments to the Law of Ukraine “On Housing and Communal Services, Ministry of Econ- Telecommunication” regarding the Increase of omy of Ukraine; Verkhovna Rada of Ukraine; Ministry the List of the Services”. of Culture and Tourism; Antimonopoly Committee • Law “On Amendments to Some Legislative Acts of Ukraine, Ministry of Economy, Ministry of Science regarding National Bank of Ukraine Activities” and Education. • The Competitiveness Partnership Action Plan Table, Another example: on July 8th, 2010 the Law which clearly states and contains issues identified by #6525 “On Collection and Accounting of Uni- each Chamber Committee as priority ones, served fied Social Contribution” was adopted by the as a main and most important basis to monitor de- Parliament. The Law envisages consolidation of velopments and identify progress. the functions, similar to functions of all funds of compulsory state social insurance in one body - The Competitiveness Partnership Action Plan clearly Pension Fund of Ukraine, i.e.: registration of the states and contains the list of legislation identified payers of insurance payments; development and as important for the further reforms implementation. management of the State Register of Social Insur- The Chamber will continue to serve as a basis to ance; maintenance of the unified reporting; con- monitor further developments and identify progress trol over the completeness and timely charging of in legislation adoption. the unified social contribution. 58 The Chamber Committees and Working Groups

The Chamber Committees and Working Groups

59 The Chamber Committees and Working Groups

Currently seventeen Committees and seven Working Groups work under the Chamber umbrella bringing together industry leaders and sector specific company experts to develop and create advocacy and lobby- ing strategies to positively, proactively and effectively impact issues of interest to the Chamber Membership. The Chamber Committees and Working Groups address pressing issues that will positively impact the busi- ness environment in Ukraine from many different sectors of the economy, including, but not limited to:

• Agricultural Committee • Banking and Financial Services Committee • Corporate Social Responsibility Committee • Customs Committee • Fuel and Energy Committee • Healthcare Committee • HR Committee (Human Resources) • IPR Committee (Intellectual Property Rights) • IT Committee (Information Technologies) • Legal Committee • Logistics and Transportation Committee • Overseas Security Advisory Council • PR Committee • Real Estate Committee • Tax Committee • Telecom Committee • Toastmasters Club • Travel and Tourism Committee

• Business Management Education and Training Working Group • Certification and Standardization Working Group • GMO Working Group • Illegal Corporate Raidering Working Group • Joint Stock Companies Working Group • Seeds Working Group • Waste Package Management Working Group 60 The Chamber Committees and Working Groups

AGRICULTURAL COMMITTEE

Current Committee’s Priorities are: • VAT reimbursement according to the legislation • Grain Export Restrictions Management • Land Reform: in Ukraine agricultural land should be commodity. This will foster market and provide farm- ers access to financing. • VAT reimbursement issue: Co-Chairs: Andrzej Rozycki, Cargill AT, CJSC – Co-Chair and VAT administration is important for the agricultural Responsible Board Member sector’s development and has to be based on the Ivan Miroshnichenko, Noble Resources Ukraine best international practices. Agricultural Commit- Secretary: tee members actively support Chamber initiatives, Oleg Samus, Suntrade S.E. / Bunge Ukraine their positions stated in the letters issued by the Chamber. Agricultural Committee is one of the most im- portant Chamber advocacy platforms that ad- In the course of the year Agricultural Committee’s VAT dresses issues within the Ukrainian agricultural Working Group was actively involved into impactful industry, open to all interested Chamber Mem- lobbying activities. The Report on VAT Refund Arrears Markets and Possibilities of the Chamber Agricultural bers. The Committee’s main goal includes in Ukraine was prepared by the Berlin Economics in Committee to Further Advocate for Right Solutions. developing the Ukrainian agricultural sector cooperation with the Institute for Economic Research through positive interaction with correspond- and Policy Consulting in which the concrete recom- Grain Export Restrictions Management: ing policy-makers and other stakeholders. The mendations to the government were presented. On August 19th, 2010 the American Chamber of Chamber is a Member of the Public Council of Commerce in Ukraine together with the U.S.- Ukraine the Ministry of Agrarian Policy and Coordina- Thanks to Chamber Members and leadership of Business Council (USUBC) addressed the issue of tion Council on Agricultural Policy under the Mr. Andrzej Rozycki, Chamber Board Member, the grain export restrictions to President Yanukovych and Cabinet of Ministers of Ukraine that would al- hard-fought battle on the VAT system in Ukraine was Prime Minister Azarov underlining that these actions low proactive advocacy of the Committee’s addressed. An equitable and transparent distribution would hurt the Ukrainian State in the form of lost taxes priorities in the future. of the Government Domestic Loan Bonds (GDLB) and problems with foreign credits, failures for Ukraini- for VAT Reimbursement to exporters and producers an companies seeking IPOs and foreign partnerships, were issued by the government. lost revenues for Ukrainian farmers, etc. The Position Paper “Grain Export Restrictions in Ukraine – The Agricultural Committee continues actively to analyze Need for Transparent Measures” was jointly pre- Implications of Adoption of the Tax Code on Grain pared by the Chamber and USUBC. 61 The Chamber Committees and Working Groups

develop infrastructure and adopt important legis- tion between Government, Business and Civil Soci- lation i.e. Law on the Land Cadastre and Law on ety in the Agricultural Sector” in conjunction with the the Land Market. Agrarian Chamber of Ukraine. Besides Members of the both Chambers, Mr. Hryhoriy Kaletnik, Member Other legislative initiatives that are supported by the of Verkhovna Rada, Chair of Parliamentary Commit- Committee are the following: tee on Agrarian Policy and Land Relations and Mr. • Development of draft and adoption of the Law “On Jose-Roman Leon Lora, Head of Operations Sec- Wholesale Markets of Agriculture Products” tion, Delegation of the European Union to Ukraine, • Development of draft and adoption of the Law “On attended the meeting. The participants agreed that Management of State-Owned Land” interaction between government, business and rep- • Adoption of the Law “On the Procedure for Buying resentatives of civil society in the agricultural sector Land for Public Needs” should be legally regulated. The meeting proved a • Development of draft and adoption of the Law “On possibility of dialogue between all sides involved in State Program for Usage and Protection of Land” agricultural market development. Addressing the issue of grain export restrictions, the • Amendments to the Law “On Agricultural Coopera- Chamber Agricultural Committee advocated for the tion” need of transparent measures, especially on behalf • Amendments to the Law “On Land Rent” of the State Customs Service of Ukraine. • Amendments to the Law “On Mortgage” • Adoption of the Law “On State Inventory of Land” The Chamber has called upon the state officials to interfere with the current situation and contribute to Chamber Agricultural Committee conducted a num- its fast solution since such actions have caused the ber of events throughout the year: breakdown of the transportation schedules and put at risk the fulfillment of the export contracts of the com- In April 2010 the Chamber Agricultural Commit- panies, which in turn leads to significant worsening of tee conducted a Special Seminar “New Strate- the investment image of Ukraine and can put Ukraini- gies for Agrarian Business”. The Special Guests an government into dilemma of membership in WTO. of the Seminar were Mr. Anatoliy Skorchenko, Deputy Minister of Agrarian Policy of Ukraine, and Agricultural Committee continues to take measures Mr. Hryhoriy Kaletnik, Chair, Parliamentary Com- in regard to grain export quotas establishment, their mittee on Agrarian Policy and Land Relations. Dis- Such events prove generate a high level of discus- extent and terms of distribution and to ensure trans- cussions among participants of the Seminar contrib- sion on the issues of upmost importance to the ag- parency of government’s actions. uted to building a dialog, promoting the agricultural ricultural sector of Ukraine between the business sector and ensuring its future competitiveness. leaders and the government authorities. They con- Land Reform tributed to the information and contact exchange Agricultural Committee endorses cancellation of On September 14th, 2010 the Chamber Agricul- between Chamber Members and Ukrainian state of- the land sale moratorium and support completion tural Committee held a meeting titled “Creation of ficials and sent a positive signal to the present and of the World Bank project to issue certificates, to the Transparent and Clear Mechanisms of Interac- future investors in the industry. 62 The Chamber Committees and Working Groups

BANKING AND FINANCIAL SERVICES COMMITTEE

Current Priorities: facilitation of the efficient dialog between NBU and banking community; antimony laundering legislation, advocating for proper regula- tion of foreign exchange market. The Chamber is a Member of the Public Council of the Ministry of Finance and participates regularly at its meetings. Co-Chairs: Jacques Mounier, CIB Credit Agricole – Co-Chair Examples of major issues that the Committee active- and Responsible Board Member ly discussed, worked on and addressed to the state Vladyslav Rashkovan, UniCredit Bank authorities include but not limited to the following: Secretary: Law of Ukraine #1533-VI (Draft Law #3585) “On Oleksiy Lukash, PRAVEX-BANK Amending Certain Legislative Acts of Ukraine aiming to Overcome Negative Impacts of the Financial Crisis” — The Committee participants The Banking and Financial Services Commit- discussed the taxation issues, emerging from inter- tee has identified its Mission as active partici- pretation of this Draft Law and addressed state au- pation in the Ukrainian banking system devel- thorities aiming to identify the most negative conse- addressed the relevant state officials with its position opment and promotion of high quality banking quences the Law resulted in. As well the Committee regarding tax deductibility for provisions of banks, standards and values as well as support and experts expressed their opinion on the Resolution of suggestions regarding specification of paragraph development of initiatives of the Ukrainian the National Bank of Ukraine #762 “On Regulation 12.2.1 of the Law of Ukraine “On Corporate Profit government and local banking association to- of the Issues regarding the Registration of Foreign Taxation” (Article 12 of the CPT Law was amended wards establishment of local banking environ- Investments”, which was issued in fulfillment of the by the Law of Ukraine #1533-VI “On Amending Cer- ment harmonized with the best international Law #1533-VI. After registration of the Draft Law of tain Legislative Acts of Ukraine aiming to Overcome banking practices. The Banking and Financial Ukraine #6122 “On Amendments to Certain Legisla- Negative Impacts of the Financial Crisis”). Services Committee has established itself as tive Acts of Ukraine (regarding crediting and stimula- one of the most active and productive Cham- tion of foreign investments)” intended to mitigate the Draft Law #6293 “On Amendments to Part 1 ber Committees involved both in lobbying and effects of the Law of Ukraine #1533-VI, the Commit- Item 1 of the Article 24, Part 1, Item 5 of the networking activities. tee has addressed the relevant state officials with its Final and Transitional provisions of the Law of position supporting the Draft Law and as the result Ukraine “On Joint Stock Companies” — After of its efforts the Draft was adopted thus restrictions the Draft Law #6216 “On Amendments to the Law regarding cross-border loans and foreign invest- of Ukraine “On Joint-Stock Companies” (regarding ments were withdrawn. As well the Committee in improvement of the activities mechanism) was reg- conjunction with the Chamber Tax Committee have istered in the Parliament, which cancels the listing 63 The Chamber Committees and Working Groups

express disagreement with the Draft Law #5183 “On Amendments to the Law of Ukraine “On Joint Stock Companies” (regarding providing the rights of ordi- nary shares’ owners for dividends receipt) which is enhancing mandatory dividends paying.

Draft Law of Ukraine #6376 “On Derivatives” — Pursuant to the Chamber position, the Committee participants suggest that the Draft will stimulate the development of the financial market, however there are certain provisions which need modifications. The Committee has addressed the relevant state of- ficials with its position and will further cooperate with the representatives of the Parliament Committee on Finance and Banking to discuss the issue.

Draft Concept of Single National Payments Area, Draft Law #6465 “On Amendments to Cer- tain Legislative Acts of Ukraine (regarding improve- ment of payment systems functioning mechanisms and special payment means) and the Draft Law #6466 “On Amendments to the Law of Ukraine procedure for the public joint stock companies (Ar- rated into the Chamber positions on the Draft Tax “On Payment Systems and Transfer of Funds in ticle 24) was registered on March 19th, 2010 (ad- Code at its different stages of its development. The Ukraine” (regarding development of non-cash opted in 1st reading on July 6, 2010), the Chamber Chamber took a leading role in the Draft Tax Code transactions using special payment means and Banking and Financial Services Committee decided developments within the framework of the Parlia- national payment area) — The Committee has ad- to support such legislative initiative. However in view ment Committee on Taxation and Customs Policy dressed the relevant state officials with its position, that the more specific Draft Law #6293 “On Amend- and continues to actively advocate for issues that gathered the special Working Group to develop the ments to Part 1 Item 1 of the Article 24, Part 1, Item 5 are important to the Chamber Membership. final Chamber position, addressed the Parliament of the Final and Transitional provisions of the Law of asking to include the participants of the Chamber Ukraine “On Joint Stock Companies” was registered Proposed amendments to the Joint Stock Working Group into the Parliament Working Group on April 13th, 2010 the Chamber supported the lat- Company Law mandating payment of divi- on the issue and will invite Mr. Polunieiev, People’s ter piece of legislation. dends — The Committee has addressed the rel- Deputy for the Banking Committee Meeting to dis- evant state officials with its position. According to cuss the issue; Banking issues in the Draft Tax Code — The the letter, there is a need to support the Draft Law Committee through the special Chamber sub Work- #6396 “On Amendments to the Law of Ukraine “On The Draft Law #3062 (Law of Ukraine #2258-VI) ing Group on the Draft Tax Code – banking issues 2010 State Budget of Ukraine” (regarding bringing “On Amendments to the Law “On Anti-Money prepared the positions which were further incorpo- certain provisions in line with current legislation) and Laundering” — The Committee has addressed the 64 The Chamber Committees and Working Groups

President, the relevant state officials and FATF with Chamber Banking and Financial Services Commit- other issues Parties decided to sign the Memoran- its position. The Chamber Policy Team and experts tee Meeting with Mr. Aleksander Zavada, Presi- dum of Cooperation in near future; of the Chamber Committee participated in the Work- dent of Ukrainian Insurance Federation devoted ing Meeting with Mr. Sergiy Gurzhiy, Head of State to insurance market sector development; Chamber Banking and Financial Services Com- Financial Monitoring Committee of Ukraine devoted mittee Meeting with Mr. Marius Vismantas, to Anti-Money Laundering (AML) Law where among Chamber Banking and Financial Services Commit- World Bank designed to results of the World other issues Parties decided to sign the Memoran- tee Meeting with Ms. Tatyana Fedorova, Asso- Bank activities and priorities from a financial sec- dum of Cooperation in near future. ciation “Ukrainian Union of Lessors” devoted to tor standpoint; leasing issues in the Draft Tax Code; The Committee closely cooperates with the newly Chamber Banking and Financial Services Com- established institution — Forum for Leading Interna- Chamber Banking and Financial Services Committee mittee Meeting with Mr. Max Alier, IMF Resident tional Financial Institutions sharing views and lobby- Meeting with Mr. Sergiy Gurzhiy, Head of State Fi- Representative in Ukraine who informed on fi- ing financial sector related issues on different advo- nancial Monitoring Committee of Ukraine devoted nancial related matters of IMF-Ukraine Agreement, cacy venues. to Anti-Money Laundering (AML) Law where among concluded in July 2010.

In 2010 the Chamber Banking and Financial Servic- es Committee held important meetings with repre- sentatives of the private sector, experts and Govern- ment officials including, but not limited to:

Chamber Banking and Financial Services Committee Meeting with Mr. Vasyl Volha – New Head the State Commission on Financial Services Market Regulation who updated on the main priorities, plans of activity, legislative ini- tiatives of the State Commission on Financial Ser- vices Market Regulation. Among the main priorities of activity the guest speaker mentioned increasing area of competence of the regulator and its inde- pendence; increasing in 10 times the capitalization of insurance market in the next 3 years; adoption of the Law of Ukraine “On Obligatory Medical In- surance” (now the Special Working Group is es- tablished); introduction of obligatory agriculture insurance; amendments to the Law of Ukraine “ On Financial Services” (according to which the regula- tor will be given enough competences in order to operatively react on the relevant market); 65 The Chamber Committees and Working Groups

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

Examples of the major issues that the Chamber The CSR Committee was also involved in the project Committee actively discussed and worked on in- “From Words to Deeds” aimed at setting up NGOs/ clude, but are not limited to: charitable programs in local communities and devel- oping consolidated and systematic approach to the Discussion and sharing of the best practices on existing charitable programs from CSR community. the corporate social responsibility sphere, re- The process of project implementation includes de- search on the possibilities, challenges and op- termination of the corporate CSR priority issues for Responsible Board Member Jason Murphy, portunities for the development of social respon- the Member Companies and further cooperation with British American Tobacco Ukraine sibility concept in Ukraine, sharing the results of an experienced charitable organization to design, Co-Chairs: research “HR Role in Company’s Sustainable implement, monitor and evaluate a sustainable, com- Yuriy Bykoriz, “Slavutich”, Carlsberg Group Development” elaborating on the human factor munity-based social investment project from start to Tetyana Babenko, METRO Cash & Carry Ukraine in the success of corporate SCR programs, which finish. The Committee Members determined the three Secretary: was explored by the Centre for Corporate Social CSR priorities, namely environmental protection, Anna Chumak, International Institute of Business Responsibility Development with support of JT In- health and child care and education and listened ternational Company Ukraine and presented by to the reputable charity organizations presenting their The Mission of the Chamber Corporate Social Ms Maryna Saprykina. vision of a successful project implementation. Responsibility (CSR) Committee is to promote social investment practices among the busi- ness community, develop the CSR concept in Ukraine (advocating for harmonization of the legislation base), assist local and internation- al businesses in the foundation and further development of philanthropy and charity in Ukraine and build their effective cooperation with the variety of charitable organizations, provide valuable experience for the national and international companies how to design, implement, monitor and evaluate a sustain- able, community-based social investment project from start to finish.

66 The Chamber Committees and Working Groups

CUSTOMS COMMITTEE

Examples of major issues that the Committee ac- • Customs Clearance for Transparent Le- tively discussed, worked on and addressed to the gitimately Operating Companies Has Been state authorities include but not limited to the fol- Simplified (White Lists) — The Chamber, as lowing: an organization representing legitimately oper- ating companies in Ukraine, supports and has • Draft Customs Code — the Chamber Cus- been actively lobbying for the development and toms Committee experts are included into the implementation of White Lists; Working Group under Cabinet of Ministers of Responsible Board Member Boris Krasnyansky, Ukraine which is engaged in elaboration of the • Methodology of the cost calculations re- PricewaterhouseCoopers Draft Customs Code; lated to the customs clearance procedures Co-Chairs: — The Draft Order “On Amendments to Meth- Igor Dankov, PricewaterhouseCoopers • Draft Tax Code — The Chamber Customs odological Recommendations on application Svetlana Polevaya, UPS Committee experts contribute to providing com- of Certain Provisions of the Customs Code of The Mission of the Chamber Customs Com- ments to the Draft Tax Code which are incorpo- Ukraine on Customs Value Determination of mittee is to contribute to development of the rated into general Chamber position; Goods, Imported into the Customs Territory of customs legislation that would be simple, Ukraine — the Co-Chair of the Customs Com- modern, adaptable, realistic and tangible and • General issues of the customs value defini- mittee Mr. Igor Dankov, Co-Chair of the Chamber to develop a professional Forum for discus- tion — the Committee participants are discuss- Customs Committee, PricewaterhouseCoopers sion of the customs issues. ing the general and specific issues and continue has developed the comments to the Draft Or- to maintain dialog with the relevant state author- der aimed to improve the procedure of royalties’ The Chamber Customs Committee remains ities; treatment which were sent to the State Customs to be the active Member of the Public Council Service of Ukraine; under the State Customs Services of Ukraine • Royalty — the Chamber maintains the dialog and regularly presents the Chamber Members with the State Customs Service of Ukraine, Min- • “Excise” Customs Terminal — after an in- concerns at the Public Council Meetings. istry of Economy of Ukraine regarding clarifying tensive advocacy and lobbying campaign by the procedure of the customs treatment of roy- the Chamber Policy Team, Chamber Customs alties; Committee and Chamber Healthcare Commit- tee, on Monday, April 12th, 2010 in accordance to the Order of the State Customs Service of • Express deliveries — the Chamber in con- Ukraine #344 “On Liquidation of the “Excise” junction with relevant associations has prepared Customs Terminal and amendments to the Or- the letter asking to cancel the types of customs der of the State Customs Service of Ukraine control for express-deliveries and continues to #130 dated February 18th, 2010” the “Excise” lobby against such restrictions; Customs Terminal ceased to exist; 67 The Chamber Committees and Working Groups

• Instruction of the Chief State Inspector Open Committee Meeting devoted to diverse Sergii Volyk, chief inspector of the Department of the Veterinary Medicine of Ukraine customs issues hosting representatives of the of Organization of Customs Control and Work of #15-3-1-3/5107 dated June 15th , 2010 State Customs Service of Ukraine, i.e. Mr. Pav- Customs Brokers, Mr. Pavlo Pisnoi, Deputy Head which is cancelling all existed permissions lo Pashko, Deputy Head of the State Customs of the Regional Informational Customs, Mr. An- on import of products of animal origin to the Service of Ukraine, Ms. Kateryna Shelepova, drii Ocheret, Head of division of goods declar- territory of Ukraine — The Committee has Deputy Director of the Department of the Cus- ing of the Department of Customs Regimes and addressed the relevant state officials with its toms Value, Mr. Hryhorii Maltchik, Deputy Direc- Organization of Customs Clearance, Mr. Andrii position and met with Mr. Oleksander Zhuk, tor of the Department of Organization of Cus- Budakov, Deputy Head of the Division of Legal Deputy Head of the State Committee on toms Control and Work of Customs Brokers, Mr. Maintenance. Veterinary Medicine and with Mr. Artem Say- enko, Deputy Head of the State Inspection of the Veterinary Medicine who suggested to work jointly on elaboration of amendments to the Law “On Veterinary Medicine” and to the Resolution of the Cabinet of Ministers of Ukraine #652.

In 2010 the Chamber Customs Committee held important meetings with representatives of the private sector, experts and Government officials including, but not limited to:

Meeting with a distinguished guest-speaker Mr. Sergiy Tereshchenko, Head of the Department of the Monitoring of Scientific Research in the Sphere of Maintenance of Customs Affairs, State Scientific Research Institute of Customs Affairs of the State Customs Service of Ukraine devot- ed to discussion of the issue of customs value and EU legislation application in this sphere.

Meeting with Mr. Anatoliy Serbailo, Head of the Department of Organization of Customs Con- trol, State Customs Service of Ukraine and Mr. Hennadiy Romanenko, Head of the Kyiv Re- gional Customs House dedicated to the Excise Terminal issue. 68 The Chamber Committees and Working Groups

FUEL AND ENERGY COMMITTEE

Responsible Board Member Mr. Patrick van Daele, Shell Co-Chairs: Mr. Oleksiy Tatarenko, Shell Secretary: Mr. Yaroslav Petrov, Asters

The Mission of the Chamber Fuel and Energy Committee is to secure level playing field and liberalization of oil and gas markets in Ukraine (including Gas Market Law, oil auctions, etc) and improve the mechanisms for investment into oil and gas sectors (including licensing procedures, PSA, joint activity agreements, joint ventures) in the Upstream Sector, har- monize Ukrainian oil products standards with Aiming at making the Ukrainian fuel and energy mar- Examples of the major issues that the Chamber Fuel the ones in the EU and establish effective qual- ket investor friendly and favoring energy indepen- and Energy Committee actively discussed, prepared ity control system, as well as secure fair and dent Ukraine, the Committee was deeply engaged and addressed to the state partners include, but are transparent competition on Ukrainian oil prod- in shaping the legislative base, namely thoroughly not limited to: ucts market in the Downstream Sector and analyzing all the Draft Laws appearing in Verkhovna develop investment incentive New Tariff Meth- Rada and immediately contacting the state authori- State regulation of Gas Market: the Law of odology for electricity distribution companies ties with the aim of communicating the correspond- Ukraine “On the Principles of Gas Market Opera- based on the best international practices in the ing vision and position of fuel and energy business tions” included into the Action Plan of the Chamber’s Electricity Sector. representatives to the state authorities, including “Partnership for successfully competing in the global President, Prime Minister, relevant Ministries. economy” among those, which required reforms. 69 The Chamber Committees and Working Groups

The Committee recognized that adoption of the Law mentioned legislation. Special Working Group on cial attention to the governance on the Production was a positive development and a step forward to Product Sharing Agreement Law was created un- Sharing Agreements (“PSA”) Tax Code of Ukraine harmonization with the EU standards and energy in- der the Chamber to develop and address the list of (Chapter XVIII), which suggests transferring the tax dependence. At the same time, Chamber Members proposals on the Draft Law to Mr. Tkachenko, Head treatment of the PSA revenues to the general fiscal claimed that the adopted Law contains a number of of the Committee of Economic Policy Affaires, VR system and thus makes such mechanism unattract- provisions that hinder development of a competitive Committee on Fuel and Energy and VR Committee ive for most of the projects in the oil and gas area. gas market in Ukraine and concern the investment on Industrial and Regulatory Policy and Entrepre- The Committee Members submitted their sugges- community and submitted letter with their consid- neurship. Position Paper on Product Sharing Agree- tions to the relevant state authorities. erations on improvement of this important piece of ment focused on proposals regarding the following legislation to the Prime Minister Mykola Azarov. aspects of the law: tender procedures, government JAA issue: the Committee Members analyzed the as a PSA party, taxation issues, assignment of rights situation with the Joint Activity Agreements, namely Energy efficiency: the Draft Law #5376 “On under PSA, role of state authorities and local admin- subjective interpretations of subsoil legislation, un- Amendments to Certain Legislative Acts of Ukraine istration. willingness to recognize JAA as a valid mechanism on Product Sharing Agreement”. The Chamber Pol- for investment and unjustified barriers set by State icy Team, in conjunction with many fellow Members, PSA taxation in Draft Tax Code: the Chamber Fuel Tax Administration in its numerous orders and ad- consistently monitored and worked on the above and Energy Committee Members also paid spe- dressed the Prime Minister Mr. Mykola Azarov with the request to take measures for eliminating incon- sistencies between the above mentioned orders of the State Tax Administration and provisions of Ukrai- nian legislation.

Transparent competitive environment on the oil and gas market: the Committee Members con- sidered the situation with the tax-free import of oil products in the country, absence of necessary regu- lations for orderly and transparent conducting of oil auctions in the country and delay with the transfer to Euro 4 standards.

In 2010 the Chamber Fuel and Energy Committee held important meetings with experts, government officials and representatives of international organi- zations, including but not limited to:

• Mr. Max Alier, IMF Resident Representative in Ukraine • Mr. Volodymyr Ignashchenko, the First Deputy Min- ister for the Environmental Protection 70 The Chamber Committees and Working Groups

HEALTHCARE COMMITTEE

Current Committee’s Priorities are: professional intellectual products in Ukraine, im- • Setting up and further development of reimburse- provement of their regulations and cancelling VAT ment system in Ukraine in respect to medicinal on imported drugs for clinical trials by changes in products; the legislation in force • Adoption of the new up to date and western type • Improvement of regulation of medical products law on medicinal products. turnover • Improvement of the procedure of state quality • Contributing to reforming the national healthcare control over imported medicines system and defining priority steps to be taken Alexander Rodionov, Procter & Gamble Ukraine — • Compliance with intellectual property rights of in- Responsible Board Member novative pharmaceutical companies; improving One of the top Committee’s priorities is improve- Co-Chairs: situation in regards to public procurement issues ment of the provision of healthcare to the popu- Borys Danevych, Paritet Law Firm • Development of system of clinical trials by taking lation by setting up and further developing the Serhiy Kalashnyk, Eli Lilly Vostok S.A into consideration a great potential of export of reimbursement system in respect to medicinal Secretary: Arkadiy Lytvak, Pfizer H.C.P. Corporation

The main objective of the Healthcare Com- mittee, one of the oldest at the Chamber, (it began in 1998) is to improve Ukraine’s busi- ness environment in the pharmaceutical field. The Committee works in close liaison with the US Embassy Commercial Department and the US Department of Commerce. The Chamber is a Member of the Public Council of the Healthcare Ministry and regularly par- ticipates in the meetings.

71 The Chamber Committees and Working Groups

products. Reimbursement system together with or with access to needed medicine. The Committee apart of the compulsory medical insurance should joined the Working Group within the Parliamentary be developed based on international best practic- Healthcare Committee, initiated by Mr. Yuriy Gaid- es and experience. A number of events was held ayev, Member of Parliament. As a part of healthcare throughout 2010 dedicated to the establishment of system reform, the Committee will continue to ad- this new system that would provide more citizens vocate for establishment of the effective reimburse- with access to needed medicine. A piece of legisla- ment system of out-patient treatment, in particular, tion must be developed and adopted by the Parlia- reimbursement of prescribed medicines’ costs. ment of Ukraine. The Committee Leadership sup- ports the possibility of introduction of the certain The Committee Members have elaborated Commit- elements of the German reimbursement system tee’s position on prevention of VAT introduction for in Ukraine, as this issue was discussed at one of medicines: it should be introduced only after the es- Committee Meetings, and it was the first presen- tablishment of a state medical insurance/reimburse- tation of this kind made in Ukraine in which a leg- ment system, but not before it. Members continue to Draft Law # 7007. The Members of the Chamber islative framework of functioning of reimbursement monitor adoption of the Draft Tax Code of Ukraine Healthcare Committee are convinced that the issue system in Germany was analyzed. and perspectives of VAT introduction on pharma- of advertising of OTC medicines should be regulated ceuticals. Position of Healthcare Committee is that but there should be no ban on advertising as such The Chamber Healthcare Committee conducted a there should be no VAT on medicines. In this regard, practice is absent in Western countries. round table jointly with APRAD (Association of Phar- the Committee has addressed Mr. Volodymyr Lyt- maceutical Research and Development) that was vyn, Parliamentary Speaker, with a letter in which the The Committee successfully worked on providing dedicated to the establishment of the reimburse- state authorities are urged not to introduce VAT on changes to the Draft Law of Ukraine “On Amend- ment system in Ukraine that will provide more citizens medicines since it will lead to price increase. ments to the Article 12 of the Law of Ukraine on Medicines” on adding Braille labeling for packages The Committee also works actively on improvement in order to harmonize it with the existing practices of regulations concerning clinical trials in Ukraine in Europe. The Committee’s suggestions were also and on potential exemption of services on conduct- taken into account in the preparation of the Order ing of clinical trials from VAT by changing and further of the Ministry of Healthcare of Ukraine regarding developing existing legislation. approval of procedure of the Braille font labeling of The Chamber Healthcare Committee developed its medicinal products. position on the draft Law # 7007 “On the Amend- ments to Certain Healthcare Legislation” (as regards The Chamber Healthcare Committee advocates for strengthening control of the turnover of medical the necessity of re-shaping of IPR protection system products, food products for special dietary con- in pharmaceutical sector. Intellectual property rights sumption, functional food products and dietary ad- of the innovative pharmaceutical companies shall be ditives) and addressed the Parliamentary Healthcare protected and respected by means of legislations Committee regarding the introduction of the adver- and law enforcement in order to make the Ukrainian tising ban on pharmaceuticals. A letter was sent to pharmaceutical sector more attractive for interna- Members of Parliament who are the authors of the tional investments. 72 The Chamber Committees and Working Groups

HUMAN RESOURCES COMMITTEE

Efficient labor market mechanism must ensure a clear chaired Mr. Vasyl Nadraga, Minister of Labor and relationship between worker incentives and their ef- Social Policy, and continues to advocate for imple- forts, as well as the best use of available talents — mentation of balance of interests between employ- which includes equity in the business environment ers as well as employees. between women and men, foreign citizens and Ukrai- nian nationals. A major labor law reform – the Draft Moreover, the current gaps in the national la- Labor Code of Ukraine aimed at improving the So- bor regulations together with unstable migration viet heritage in labor relations has been developed, rules both prevent an optimal allocation of hu- Co-Chairs: but it has yet to be finally approved by the Verkhovna man capital from outside Ukraine and seriously Alena Kozlova, Shell Rada. The named Draft Labor Code is not an ideal penalizes Ukraine’s attractiveness for foreign Aleksandr Rudnitsky, JT International one in view of its content and rule-making, however, specialists in different kinds of economic activ- Secretary: contains for the most part a number of achievements ity. In particular, exit/entry procedures for for- Anna Shalina, Deloitte of both national and foreign developers. eigners and current policies in regards to work permit regulations continue to be important and Current Committee’s Priorities are: The Chamber HR Committee participates in the sometimes confusing issues to be resolved in Working Group on Labor Market Liberalization the nearest future. • Strengthening of the advocacy activities in the part of improving/amending the national la- bor legislation (esp. Draft Labor Code, General Agreement) to further exclude the current gaps in the national labor regulations together with unstable migration rules both prevent an optimal allocation of human capital from outside Ukraine and seriously penalizes Ukraine’s attractiveness for foreign specialists in different kinds of eco- nomic activity; • Continuing being the platform for sharing best practice, experience, knowledge and skills with HR Community within the framework of regular Committee Meetings and Knowledge Seminars; promoting and implementing effective profes- sional training for the tomorrow HR specialists aiming to raise the level of human capital (HR University Project implemented at the Kyiv Na- tional Economic University). 73 The Chamber Committees and Working Groups

tainable Development” conducted by the Centre for department of the Kyiv National Economic University Corporate Social Responsibility Development with (KNEU) which is developed for future specialists in support of JT International Company Ukraine. the field of personnel management.

Ms. Maryna Saprykina, Head of the Board, the The Chamber continues this successful and in- Centre for Corporate Social Responsibility Devel- novative program for the benefit of future business opment, did a presentation titled “Social Respon- leaders. This project provides an opportunity for the sibility: People are Essential”. She underlined that students to get trained in the field of personnel man- a partnership between HR and CSR departments is agement, tailored to the needs of today’s business, a step towards consistent corporate responsibility corresponding to the new economic realities, mak- policy and explained financial benefits if corporate ing graduates in demand within the labor market. CSR programs are successful and advantages for the company if employees are involved in them. The In order to familiarize future young professionals with speaker stressed that involvement of the employees the latest theories, trends and developments in per- is a key factor of companies’ share value (indicator sonnel management, the Chamber HR Committee for corporate management assessment). developed a series of lectures for third through fifth year students. As a result of the meeting, participants agreed to prepare a second part of the Guide “Social Respon- The HR professionals that participated in the proj- In September 2010 HR Committee conducted a sibility: People are Essential”. ect last year continued their involvement with the HR meeting devoted to the discussion titled “Certain The Chamber HR Committee is a very popular plat- University and deliver the lectures, containing theo- Myths and Existing Misconceptions about Employ- form of best practice sharing among HR profession- retical and practical conclusions, on the topics listed ment in Ukraine” facilitated by Ms. Kristina Kochet- als that are able to discuss such issues as motivation, in the table. kova, Senior Consultant, Tax and Legal Services, corporate culture, personnel retention, employees’ HRS Group, and Ms. Olga Melnychenko, Attorney, compensation and benefits, performance manage- In general a strong and continuous partnership based Tax and Legal Services, Legal Group, from Pricewa- ment and exchange their opinion regarding legal, on concrete projects’ implementation, respect and terhouseCoopers. immigration and tax matters of the employment of professionalism is already acknowledged as the only Ukrainians as well as foreigners. one effective approach to solve many problems in The speakers raised certain problematic issues in the sphere of education and skills’ gap minimization. the employment area, including legal, immigration One of the successful mechanisms of providing up- The Chamber together with its international Mem- and tax matters regarding the employment of Ukrai- to-date practical experience to the future specialists bership prepares the specially designed partnership nian and foreign citizens and participants shared the in the field of personnel management is the Educa- projects in the HR and education spheres. experience gained in resolving these issues. tional Project “HR University”. Chamber HR Committee also devoted one of its to The Chamber Human Resources Committee con- meeting to the discussion of the a partnership be- In November 2010 the Chamber’s Human Re- stantly advocates and works for improvements in tween HR and CSR departments in the company, in sources (HR) Committee Educational Project these areas which would place Ukraine on a stronger particular the meeting was devoted to sharing re- “HR University” was re-launched for the aca- growth trajectory going into the future and increasing sults of the research “HR Role in Company’s Sus- demic year 2010 - 2011 in conjunction with the HR country’s attractiveness for foreign investments. 74 The Chamber Committees and Working Groups

INTELLECTUAL PROPERTY RIGHT COMMITTEE

During the year the Chamber and IPR Commit- The Chamber IPR Committee Members discussed tee were focused on the issue of copyright and the recent amendments to the Law of Ukraine “On related rights as well as patent rights in the Judicial System and Status of Judges” as well sphere of laser disks production. The Cham- as the role of the State Inspectors in the IP pro- ber was pleased to organize a number of meet- tection; ineffectiveness of their work is in limitation of ings and discussion on this issue including Meet- their rights and only formal nature of their requests ing with Mr. Oleh Gumenyuk, Deputy Head of the and actions, as they have no control over the law en- department on copyright and related rights at the forcement authorities. State Department of Intellectual Property, Ministry Co-Chairs: of Science and Education. The Chamber actively worked on the Comments to Mr. Taras Kyslyy, Magisters the Recommendations of the Supreme Economic Mr. Ruslan Drobyazko, Baker & McKenzie — In 2010 the Chamber was please to have a Court of Ukraine regarding the cases related to the CIS, Limited Special Joint IPR and Customs Committees intellectual property sphere. Secretary: Meeting with Mr. Timothy Trainer, the Presi- Mr. Michael Doubinsky, Doubinsky & Osharova dent of Global Intellectual Property Strategy The industry sectors’ represen¬tatives as well as the Center (USA) who spoke on the role of Cus- lawyers and service providers of the companies are toms in Intellectual Property protection and the still concerned about the appropriate law enforce- Curren In 2010 the Chamber IPR Committee role of Intellectual Property in business and eco- ment practices by the Ukrainian State authorities for is still concerned about the issue of “gray nomic development. the violations in the IPR area. and parallel import”, which creates prob- lems and obstacles for many legally operat- ing companies in Ukraine.

75 The Chamber Committees and Working Groups

INFORMATION TECHNOLOGIES COMMITTEE

Co-Chairs: Mr. Vlad Zhovtenko, WordAPP Inc. Mr. Andrii Suchyk, GlobalLogic Ukraine Secretary: Ms. Irina Volk, Microsoft Ukraine, LLC

The Chamber IT Committee experienced elec- tions in September 2010. The newly appoint- ed Committee Leaders Mr. Vlad Zhovtenko, The Chamber was a Member of the Public Council information on the priority issues for the industry WorldAPP, Inc., Mr. Andrii Suchyk, Global- of the State Committee for Informatization and par- throughout 2010-2011. In the process of discussion Logic Ukraine and Ms. Irina Volk, Microsoft ticipated in those meetings regularly. By the end of participants defined top challenges for IT & Telecom Ukraine, LLC continued working for the ben- 2010 the State Committee for Informatization was industries in Ukraine and possible synergy areas for efit of the IT Committee as well as the IT in- restructured into the State Committee on Science, cooperation. dustry in Ukraine. Innovations and Informatization. The Chamber took part in the meeting of the organizational group un- In 2010 within the framework of the Chamber IT Com- der the State Committee for Informatization, which mittee the Chamber Members actively work on the became the basis for the Public Council under the Draft Tax Code in the provisions relating to IT sphere. State Committee on Science, Innovations and Infor- The Committee is as well concerned about legislation matization. on Electronic Signature and Cryptographic Data Protection. The Committee has elaborated com- Among the achievements and innovations of the ments to the Draft Tax Code within the framework of Committee in 2010 the Chamber ICT Market the Draft Tax Code Working Group on IT issues and Leaders Business Breakfast can be mentioned. started working on the Draft Customs Code within The Business Breakfast provided the CEOs of the the Working Group of the Chamber Customs Com- Chamber Member companies with an excellent mittee to ensure that opinion of the IT related busi- opportunity for focused networking to exchange ness community is taken into account. 76 The Chamber Committees and Working Groups

LEGAL COMMITTEE

Examples of the major issues that the Committee was actively involved in included but are not limited to:

Draft Tax Code — The Committee experts are in- volved into the sub Working Groups of the Chamber in regards to commenting the Draft Tax Code provi- sions; James Hitch III, Baker & McKenzie - CIS, Limited – Responsible Board Member The Joint Stock Company Law — the Com- Co-Chairs: mittee experts are working on elaboration of the Olexander Martynenko, CMS Cameron Regulations of the Securities and Stock Market McKenna LLC State Commission, Clarifications of the Securities Mariya Nizhnik, Vasil Kisil & Partners and Stock Market State Commission as well as on Secretary: amendments to the Law of Ukraine “On Joint Stock Sergiy Shklyar, Arzinger Company Law”. As for the example, the Committee experts provided structured comments in relation to The Chamber Legal Committee was created the Draft Law #6216 “On Amendments to the Law Draft Law “On Limited Liability Companies” — as a forum for professional exchange among of Ukraine “On Joint Stock Companies” (regarding Committee Members are studying the Draft Law via attorneys from law firms and local companies. improvement of the mechanism of activity). the special set Working Group and are formulating Members of the Committee represent a broad the Chamber position; spectrum of legal professionals working in Kyiv. One of the Committee’s main activities Draft Law “On Bar” (three versions), Law of is to work in conjunction with other Chamber Ukraine #2453-VI “On Judicial System and Committees when they need to address issues Status of Judges” — the Committee Members with specific legal ramifications. are studying the Draft Laws and then will create the Committee’s position; The Chamber is a Member of the Public Coun- cil of the Ministry of Justice, and participates Procedure of bankruptcy, Draft Law on Bank- regularly at its meetings. ruptcy procedures — Members of the Chamber Legal Committee volunteered to participate in the Working Group on procedure of bankruptcy under the Ministry of Economy; 77 The Chamber Committees and Working Groups

The Draft Law #3062 (Law of Ukraine #2258-VI) in Ukraine and will monitor further related legislation reading of the Draft Law #3071 “On Industrial Parks”; “On Amendments to the Law “On Anti-Money and inform the Committee Members on the issue; Meeting with the Stockholm Chamber of Commerce Laundering” — the Committee will prepare the po- The Committee will continue to serve as the legal Arbitration Institute dedicated to the Arbitration Cas- sition jointly with the Chamber Banking and Financial advice platform to other Chamber Committees. es Successful Prosecution; Services Committee and address the relevant state authorities; In 2010 the Chamber Legal Committee held im- Meeting — discussion related to the improvement portant meetings with representatives of the private of the JSCL, which was organized by Blue Ribbon Draft Law “On Amendments to the Law of sector, experts and Government officials including, Analytical and Advisory Centre. Ukraine “On Protection of Economic Competi- but not limited to: tion” as for ensuring evidences in cases which are considered by the Antimonopoly Commit- Meeting at the Consultancy Expert Council at the Se- Chamber Legal Committee Meeting devoted to tee of Ukraine” — the Committee has considered curities and Stock Market State Commission (Commis- the necessity of MBA as an essential stage for ed- the issue and is preparing the position. sion) devoted to Draft Law “On Amendments to the Law ucation of law firm managers and owners working of Ukraine “On Joint Stock Companies” touching on in business and financial sectors where Dr. Ofer PPP legislation implementation — Together with improvement of the corporate governance system; Zellermayer (PhD in Behavioral Decision Mak- Effective Governance Fund, CMS Cameron McK- ing and Marketing, Carnegie Mellon University), enna, Vasil Kisil and Partners and Commercial Working Group Meeting under the Parliament Com- Head of the Marketing and Advertising Program Law Center the Chamber has launched the educa- mittee on Industrial and Regulatory Policy and Entre- and Head of the Honor Program, OAC was the tional campaign regarding PPP to local authorities preneurship dedicated to the preparation to the 2nd guest speaker.

78 The Chamber Committees and Working Groups

LOGISTICS & TRANSPORTATION COMMITTEE

Current Committee’s Priorities are: discuss the future of cold logistics development in Ukraine. Over 60 participants of the Open Com- • Provision of a steady dialogue in terms of busi- mittee Meeting discussed the current state of ex- ness-government framework in regards to up- isting cold chain elements in Ukraine, possibility of to-date issues of logistics sector development: consolidation of delivery volumes of cold products infrastructure, transport, communication, etc. manufacturers in sharing expenses, perspectives of developing the cold segment of national retailers’ • Establishment of interaction mechanisms for distribution centers. It was agreed at the Meeting Co-Chairs: participants of customs logistics with state cus- that the national cold chain logistics standards can Michal Janikowski, Head of Supply Chain, toms bodies of all levels with a goal to coordi- be improved by means of uniting various logistics METRO Cash&Carry Ukraine nate activities of all sides in order to optimize players and attracting foreign and domestic invest- Oleg Kalenskyy, Member of the Board, UVK customs-terminal structure and introduction of ment into this crucial sector. cutting edge organizational, informational and production technologies The Chamber Logistics & Transportation Committee The Chamber Logistics and Transportation Leadership works on consolidation of the Members’ Committee is to be established to ensure the Meeting the numerous requests and answering to efforts in order to harmonize interaction of the market dialogue of Chamber Members — market the initiative of the company UVK and other Mem- players through suggestion of unified standards and participants and representatives of govern- bers, the Chamber proactively acceded to the need procedures, introduction of advanced technologies ment on all levels, including the Parliament to establish a communications and advocacy plat- and know-how’s, creation of knowledge base and of Ukraine, Cabinet of Ministers, certain Min- form for the shipping and logistics companies, ex- development of more efficient supply chain models. istries (Ministry of Transportation and Com- press delivery carriers, FMCG companies and retail The Committee promotes introduction of common munication in particular) and state agencies. chains to exchange information on a variety of issues pallet labeling standards in Ukraine and develop- The goal of cooperation is a formulation of that are currently impacting their businesses. ment of harmonization of operational strategies for absolutely transparent and beneficial rules of retailers, suppliers and 3PL-providers. The Mem- game — for the participants of economic ac- There is a consent among the Committee Mem- bers’ position, agreed at the Committee Meeting in tivity and for the state in general. bers of the necessity to develop and properly regu- September 2010, is that it is necessary to introduce late Ukraine’s own logistics infrastructure (including common pallet labeling standards while taking into ports, hubs, roads, truck fleets etc.). The Members account all factors of supply chain structure, and will advocate for Ukraine to become a well devel- stressed the defining role of world top retailers on oped transit country and for the need of reforms’ ac- moving this issue forward. celeration in infrastructure. The Committee works on fostering the dialogue In July 2010 the Committee provided a unique op- with the state agencies (UkrAvtoDor, the Ministry of portunity for leading cold chain industry players to Transportation and Communications, municipali- 79 The Chamber Committees and Working Groups

ties, Committee for Preparation to Euro-2012 etc.) The Logistics & Transportation Committee promotes to develop the logistics infrastructure in Ukraine; optimization in supply chain with the help of Electronic THE OVERSEAS and deepening cooperation between the business Data Interchange (EDI) technologies and expansion sector (logistics operators, cargo-owners, forward- of Efficient Consumer Response (ECR), a movement SECURITY ADVISORY ing & transportation companies etc.) and state- that provides new principles of collaborative manage- owned regulatory bodies — with a view to improve ment along the supply chain, promotes the removal state’s regulatory function and amend the local of unnecessary costs and presents a new level of re- COUNCIL (OSAC) logistics-related law closer to European standards sponse to consumer demand. The Committee meet- and practices. ing scheduled for December 2010 will bring experts from neighboring countries who will share successful In November 2010 Logistics & Transportation Com- ECR activities with their Ukrainian counterparts. mittee conducted a joint meeting with a Chamber Real Estate Committee devoted to Market Oppor- The Members of the Logistics & Transportation tunities and Investment into Development of Nation- Committee will exploit the synergies that come from Wide Cold Chain Logistics. The participants agreed powerful new information technologies and planning on joining their efforts on promoting market oppor- tools and will consider ECR as the most effective way tunities and investments into development of cold of delivering the right products to consumers at the chain logistics in Ukraine. right price and time. Mission of the OSAC is to promote security coop¬eration between business and private sector inter¬ests worldwide.

Together with the US Embassy to Ukraine the Chamber is involved in the regular dissemi- nation of useful and necessary information updates on the appropriate topics to all in- terested Member com¬panies and partner organizations as well as em¬bassies. There is a mailing list, which is open for the Mem- bership as well as weekly “OSAC Tips of the Week” announcements in the Chamber Weekly Bulletins.

80 The Chamber Committees and Working Groups

PR COMMITTEE

The Chamber PR Committee experts developed In 2010 the Chamber PR Committee held important their action plan on the improvement of the interna- meetings with experts, government officials and rep- PR tional image of Ukraine before EURO 2012 Football resentatives of international organizations, including committee Championship called “Discover Ukraine 2012” and but not limited to: addressed the key national stakeholders with the request for assistance in shaping the initiatives and • Working Meeting with Mr. Oleksiy V. Palamarchuk, sharing ideas. Deputy Head of Department of Border Control and Registration, State Border Guard Service of Ukraine, dedicated to the Immigration Card Project aimed at The Chamber PR Committee Members also dis- Co-Chairs: making the Ukrainian immigration card more user- cussed the possible ways of forming the positive Ms. Nataliya Popovych, PRP Ukraine friendly and applicable to welcome guests for EURO international image of Ukraine with the Ministry of Ms. Alexandra Afanasieva, NJSIC ORANTA 2012 Football Championship within the context of Foreign Affairs of Ukraine, State Border Guard Ser- the initiative Discover Ukraine 2012. vice of Ukraine and were invited to participate in the Mission of the Chamber PR Committee is to preparation of the conceptual paper on the interna- • Working meeting with Mr. Oleg Voloshyn, Director of support and facilitate the development of long tional image issues. the Information Policy Department, Ministry of Foreign term information policy for strengthening competitiveness of Ukraine and improving the international image of Ukraine, develop and implement initiatives directed at the forma- tion of positive international image of Ukraine before EURO 2012 Football Championship, improve the legislative framework for cover- age of business activity on TV and provision of consumers rights on access to information (Law “On Information”).

81 PR The Chamber Committees and Working Groups committee

Affairs of Ukraine, dedicated to the discussion of the Resolution of the Cabinet of Ministers of Ukraine #617 dated July 19th, 2010 “On the Order of Spending Costs Directed by the State Budget of Ukraine at the Financial Support of Forming Positive In- ternational Image of Ukraine” and the develop- ment of the joint initiatives of the PR Committee and the Ministry of Foreign Affairs of Ukraine on the forma- tion of positive international image of Ukraine.

Examples of certain events and topics that the Chamber PR Committee actively discussed include but are not limited to:

• Presentation “Influence of the First Person’s Reputa- tion on the Company’s Reputation” by Nadezhda Lubnina, Manager of External Affairs Unit, Astelit LLC. • Presentation “The Back Side of the Moon: Peculiari- ties of the PR Promotion of the TOP Managers” by Anna Adom, Deputy Director for Corporate Com- munications, DTEK. • Presentation of “Presszvanie” competition for jour- nalists of business publications by Andriy Burkenia, Project Manager, Mainstream Communication & Consulting. • Presentations devoted to the sports marketing were delivered by Mr. Vasyl Borodchuk, Marketing Director, VIASAT Ukraine, Ms. Daria Chered- nyk, PR Specialist, McDonald’s Ukraine, Mr. Mykhailo Nestor, Business Development Di- rector, Nords PR Ukraine. • Presentation “From Clear to Deep (Dirty) Water – The Power of Reputation and Brand Positioning” de- livered by guest speakers Mr. Neil Gaught and Mr. Keith Conlon from the UK-based “Gaught-Conlon and Associates” PR Company. 82 The Chamber Committees and Working Groups

REAL ESTATE COMMITTEE

The Chamber is a Member of the Public Council of Working Group under the Cabinet of Ministers of the Ministry of Regional Development and Construc- Ukraine on Construction Law Reform, where the tion and participates regularly at its meetings. Chamber is the Member. The Group is advised by the Georgian specialists who share their effective experience — e.g. in Georgia it takes 1-2 months Examples of major issues that the Committee active- to get construction approval; the concept of one ly discussed, worked on and addressed to the state window is applied (in order to get the approval the authorities include but not limited to the following: documents are filed into one window); principle of Responsible Board Member Ian Borden, silent consent (if the response from the authority is McDonald’s Ukraine Construction Law Reform — the Chamber Real not obtained within 20 days then construction can Co-Chairs: Estate Committee Leadership is included into the be started without official confirmation). Timur Bondaryev, Arzinger & Partners Natalia Stelmakh, DTZ The idea is to implement those progressive concepts Secretary: into Ukrainian reality. Denys Sytnyk, Schoenherr Ukraine LLC After the Working Group elaborates the draft docu- The Chamber Real Estate Committee sees its ments, they will be sent for review to the Chamber goals and objectives in the following: infor- Real Estate Committee Members; mation and experience sharing between the Chamber Members involved in the real estate Resolution of the Cabinet of Ministers of Ukraine sphere; cooperation with corresponding legis- #805 dated September 2, 2010 “On Approval lative and executive bodies with the objective to of the Procedure of Sale in 2010 of Non-Agri- introduce necessary amendments into Ukrai- cultural Land by Auction”, Law of Ukraine “On nian legislation which in its turn will promote State Registration of Property Rights to the Im- the real estate development in the country, re- movable Property and Encumbrances Thereon” duction of the bureaucratic obstacles involved No.1952 and Temporal Regulations on Proce- in real estate transactions, transparency in real dure for State Registration of Ownership Rights estate transactions, facilitation of foreign in- to the Immovable Property — the Committee is vestment in Ukrainian real estate development formulating the position and will address the relevant projects, availability of long term financing for state authorities on the issue; the real estate projects. Amendments to the land legislation of Ukraine regarding land ownership entitlement (with a particular focus on legitimizing land rights of 83 The Chamber Committees and Working Groups

Classification of open/residential and commer- cial space — The Chamber Real Estate Committee will update the Classification of open/residential and commercial space;

In 2010 the Chamber Real Estate Committee held important meetings with representatives of the pri- vate sector, experts and Government officials includ- ing, but not limited to: Chamber Real Estate Market Leaders Break- fast where representatives of real estate companies were present and they had an excellent opportunity for focused networking over breakfast, exchanging information on a variety of issues that are currently impacting their businesses, future business planning models as well as discussing and agreeing on the priority issues of the Chamber Real Estate Commit- tee throughout 2010; Real Estate Committee Meeting with the distin- foreign subsidiaries in Ukraine and joint ven- regards to the issue in conjunction with the Agricul- guished guest-speakers Mr. Stanislav Gorba- tures, amendments to the Article 82 of the Land tural Committee; tovych, supervisor of the Department of Land Code of Ukraine named “Ownership right on Market and Land Appraisal, State Committee Land of the Legal Entities”) and the increased Target purpose of the land plots within the cat- of Land Resources of Ukraine and Mr. Volod- transferability of land lease rights — The Com- egories — the Committee is developing the posi- ymyr Shalaev, Head of the Board of the Ukraini- mittee has addressed the relevant state officials with tion in regards to the issue; an Valuers Association to discuss the issue of land its position and is ready to cooperate with the state valuation, valuation standards, problematic issues, Sharing the practice of repossession of bad authorities to discuss the issue; connected with bringing of domestic standards in loans under non-performing loans — the Com- line with international ones; Transferability of lease rights and transferability mittee participants at the recent Committee Meeting of construction permits — The Chamber Real Es- decided to join efforts of the Chamber Banking and Fi- Real Estate Committee Meeting with Mr. Oleksiy tate Committee will work on the legal issues, connect- nancial Services and/or Legal Committees regarding Pilipets, Executive Director of Ukrainian Na- ed with transferability of lease rights and transferability the issue; tional Mortgage Association who spoke on mort- gage legislation reform and Mr. Howard Ockman, of construction permits and will make a position of the VAT refund for real estate investors — The Chief of Party, USAID Local Investment Nation- Chamber Real Estate Committee on the two issues. Chamber Real Estate Committee will unite efforts al Competitiveness Project (LINC) who spoke on with the Chamber Tax Committee to work out the reforms in property registration and its importance to Cancellation of agriculture land sale morato- position on the VAT; inflowing investment in Ukraine. rium — the Committee is developing the position in 84 The Chamber Committees and Working Groups

TAX COMMITTEE

Examples of major issues that the Committee active- Corporate and Investment Bank Credit Agricole, Mr. ly discussed, worked on and addressed to the state Anton Pridannikov, Head of the Chamber sub Working authorities include but not limited to the following: Group on the Draft Tax Code - Excise Tax, Philip Morris Ukraine, Ms. Viktoria Tymoshenko, Head of the Cham- • Draft Tax Code — The Chamber Tax Committee is ber sub Working Group on the Draft Tax Code — VAT, actively involved into the discussion of the Draft Tax PricewaterhouseCoopers, Mr. Andrii Suchyk, Head Code and was working via its 9 sub Working Groups of the Chamber sub Working Group on the Draft Tax on the Draft Tax Code - on CPT, PIT, VAT, payment Code — IT issues, GlobalLogic Ukraine, Mr. Valeriy Co-Chairs: for subsoil use, duty for special use of water and on Lebega, Head of the Chamber sub Working Group Ivan Yurchenko, Vasil Kisil & Partners peculiarities of taxation of the taxpayers under the on the Draft Tax Code — on Payment for Subsoil use, Oleh Marchenko, Ulysses & Co conditions of PSA, banking, land payment and local Duty for Special Use of Water and on Peculiarities of taxes issues, Excise Tax, VAT - grain traders’ issues, The Chamber Tax Committee sees its goals in IT issues and has already addressed the Govern- promotion of the reform and improved appli- ment of Ukraine with the Chamber position on the cation of the taxation system in Ukraine, rec- Draft Tax Code (previous #6509), addressed the ognizing that a predictable, equitable and ef- relevant stakeholders on the Draft Tax Code, which fective tax system is a significant factor both was made public on August 3, 2010 and on the in general facilitation of business and in posi- Draft Tax Code #7101-1, registered in the Parlia- tive development of the economy of Ukraine ment on September 21, 2010. The Chamber took and facilitation of information-sharing on tax a leading role in the Draft Tax Code developments issues between the Membership. Top profes- within the framework of the Parliament Committee sionals from advisory firms and business en- on Taxation and Customs Policy and continues to tities have formed the core group of the Tax actively advocate for issues that are important to Committee. The Tax Committee is one of the the Chamber Membership. most active and impactful Chamber Com- mittees actively involved both in lobbying The Board of Directors and Policy Team of the Cham- and networking activities. ber would like to express our gratitude to Mr. Slava Vlasov, Head of the Chamber Working Group on the Draft Tax Code, PricewaterhouseCoopers, Mr. Ivan Taxation of the Taxpayers Under the Conditions of PSA, Yurchenko, Co-Chair of the Chamber Tax Commit- Chevron Europe, Eurasia, and Middle East Exploration tee and Head of the Chamber sub Working Group and Production Limited for devoting their time and ef- on the Draft Tax Code – PIT, Vasil Kisil & Partners, Mr. fort to provide and compile comprehensive comments. Serhii Zarozhevskiy, Head of the Chamber sub Work- Also, to the Chamber sub Working Group on the Draft ing Group on the Draft Tax Code – Banking Issues, Tax Code — VAT and grain trader issues as well as to 85 The Chamber Committees and Working Groups

COSMETICS UKRAINE, Baker & McKenzie, Hudson Special Tax Committee Meeting devoted to discus- Global Resources, ISS — Information Software Sys- sion of the expat taxation issue with participation of tems, JT International Company Ukraine, KM Partners, Mr. Sergii Lekar, Deputy Head of the State Tax Kraft Foods Ukraina, MTS (Ukrainian Mobile Commu- Administration of Ukraine and his colleagues, nications), Paritet Law Firm, TNK-BP Commerce LLC, Ministry of Finance; Luxoft, Commercial Law Center. Meeting at Parliamentarian Tax and Customs • Determination of resident’s status for for- Committee devoted to consideration of the Draft eign nationals under the Draft Tax Code — Law #6337 “On Amendments to the Certain Legis- the Chamber Tax Committee experts continue lative Acts of Ukraine (regarding taxation), prepared cooperating with the Ministry of Finance and the by the Ministry of Finance; State Tax Administration of Ukraine in regards to the definition of tax residency and the same tax Numerous Meetings/Working Group Meetings re- rate for residents and non-residents; lated to Draft Tax Code preparation in different state • Income Tax for foreign employees — The authorities: Ministry of Finance, State Tax Adminis- Chamber Tax Committee has prepared amend- tration, Parliament Committee on Taxation and Cus- ments to the PIT Law and incorporated them toms Policy, Parliament Committee on Industrial and into the Chamber position on the Draft Tax Code Regulatory Policy and Entrepreneurship; #7101-1; • Draft STAU clarification on taxation of op- Meetings with Presidential Office related to Draft Tax erations with calculations in foreign cur- Code; rency — The Committee has addressed the rel- evant state officials with its position; Meeting with Mr. Vitaliy Khomutynnik, Head of the • Taxation of operations with calculations in Parliamentary Committee on Taxation and Customs foreign currency — The Committee has ad- Policy devoted to Draft Tax Code. dressed the relevant state officials with its posi- tion and is ready to cooperate with the state au- representatives of the following companies for impres- thorities to discuss the issue; sive and professional commentary on this important • Enforcement of specific provisions of para- piece of legislation: PricewaterhouseCoopers, Vasil graph 6.5‘d’ of the Law of Ukraine “On VAT” Kisil & Partners, Corporate and Investment Bank Credit — the Chamber Tax Committee position on 6.5.d Agricole, Philip Morris Ukraine, GlobalLogic Ukraine, clause of the VAT Law has been incorporated into KPMG, Raiffeisen Bank AVAL, Deloitte, UkrSibbank, the Chamber position on the Draft Tax Code. Alfa-Bank, SEB Bank, Allianz Ukraine, British Ameri- can Tobacco Ukraine; Danone Ukraine; ING Bank; Leo Burnett Ukraine; Shell Ukraine; Telenor Group Ukraine; In 2010 the Chamber Tax Committee held important UniCredit Bank, AES Ukraine, Audit firm “RSM APiK”, meetings with representatives of the private sector, ASTAPOV LAWYERS International Law Group, AVON experts and Government officials including, but not limited to: 86 The Chamber Committees and Working Groups

TELECOM COMMITTEE

The Chamber Telecommunication Committee works in close cooper¬ation with the Chamber IT Com¬mittee pursuing mutual goals such as creation of a necessary environment for efficient develop- ment of the Information and Communication (ICT) sector.

In 2010 the Chamber organized ICT Market Lead- Co-Chairs: ers Breakfast aimed at focused networking to ex- Mr. Oleg Ovcharenko, Samsung Electronics change information on the priority issues for the in- Ukraine dustry throughout 2010-2011. The Chamber Committee continues close coopera- Mr. Vasyl Latsanych, MTS tion with the members of the National Commission Secretary: In 2010 2 Laws included into the Action Plan of the for Communications Regulation in Ukraine aiming Ms. Yuriy Kurmaz, Astelit Chamber’s “Partnership for successfully com- at elaboration and adoption of the progressive deci- peting in the global economy” among those, sions. Thus the Chamber Telecom Committee react- The Chamber Telecom Committee’s Mission which required reforms, were signed by the President ed quickly on the following decisions of the NCCR: № is lobbying interests of the Chamber Member of Ukraine. They are: Law №2392-VI “On Amend- 391“On Approval of Amendments to the Regu- companies operating in the Ukrainian tele- ments to the Law of Ukraine “On Telecommu- lations regarding Granting Permissions for Im- com industry by providing the most efficient nication” regarding the Increase of the List of port from Abroad to Ukraine of Radio-Electronic solution to the various challenges faced by the Services; Law №2391-VI “On Amendments Means and Radiating Devices” and № 392 “On its Members. The Committee works in close to the Law of Ukraine “On Radio-frequency Re- Approval of Amendments to the Procedure of conjunction with other Chamber Commit- source of Ukraine” (regarding the authority of Implementation in Ukraine of Radio-Electronic tees to pursue mutual goals that stimulate the National Commission for Communication Means and Radiating Devices”, which were aimed creation of necessary environment for ef- Regulation (NCCR)”. at the mandatory labeling by registration signs of the ficient development of the telecommunica- radio-electronic devices and radiant devices . tions sector in Ukraine. Taking into account the urgent importance of the issue for that time, the Committee took the decision to use the opportunities for joint advocacy campaign under the Chamber Telecom Committee to appeal with the Letter to the Cabinet of Ministers of Ukraine request- ing to review the mentioned decisions taking into ac- count the interests of the producers of RED and RD as well as the importers and distributors in Ukraine. 87 The Chamber Committees and Working Groups

TRAVEL AND TOURISM COMMITTEE

The Travel and Tourism Committee Members ac- Foreign Affairs of Ukraine, enlightened the partici- tively monitored the legislative base in the travel pants on the recent simplifications of visa regime for and tourism industry, were engaged in the dialogue the foreigners entering Ukraine. with legal experts and state authorities with the aim of improving acting legislation and developing new regulations. They took keen interest in the issues of preparation and development of the action plan for active participation in EURO 2012 Football Cham- Co-Chairs: pionship. For the achievement of its objectives the Ms. Valerie Luyk, Sky Travel HRG Ukraine Travel and Tourism Committee the Chamber chaired Ms. Alexandra Plakhota, Premier Palace Hotel the Working Group on EURO 2012 under the Minis- Secretary: try of Economy and together with the Chamber Legal Mr. Nickolay Omelchenko, Save Travel d/b/a Committee maintained close cooperation with the KievApartment.com Ministry of Foreign Affairs of Ukraine regarding Travel and Tourism Committee priorities achievement. Mission of the Chamber Travel and Tourism Committee is to encourage the participation In 2010 the Chamber PR Committee held important of the Chamber Members in an organized meetings with experts, government officials and rep- policy to promote Travel and Tourism related resentatives of international organizations, including issues in Ukraine. Committee Meetings were but not limited to: aimed at discussion of the activities in the Travel and Tourism sector aimed at prepara- • Ms. Natalia Popovych, PRP, Co-Chair of the Cham- tion to Euro 2012 World Football Champion- ber PR Committee enlightened the Committee ship, improvement of the current legislation Members on the initiatives of the Chamber PR Com- related to electronic documents to eliminate mittee aimed at formation of the positive international difficulties with electronic tickets usage and image of Ukraine before EURO 2012; The Chamber Travel and Tourism Committee elabo- the Resolution of the Cabinet of Ministers • Mr. Oleksandr Martinenko, CMS Cameron McKen- rated the project Chamber Travel Club as an inno- of Ukraine #663 dated April 23, 1999 “On na LLC, Co-Chair of the Chamber Legal Committee vative platform for the travel & tourism professionals the Compensation of Expenses on Business commented upon the Resolution of the Cabinet of from the one side and for the Member companies, Trips within Ukraine and Abroad”, as well as Ministers of Ukraine #663 dated April 23, 1999 “On embassies, and partners from the other side that al- and Travel Club organizational issues. the Compensation of Expenses on Business Trips lows maintaining a regular dialog, expanding busi- within Ukraine and Abroad”; ness opportunities, obtaining new value-added and • Oleksiy Turgan, the First Secretary of Visa Support useful information in the sphere of travel and tour- Division in the Consulate Department, Ministry of ism, establishing new official format for the event. 88 The Chamber Committees and Working Groups

BUSINESS MANAGEMENT EDUCATION WORKING GROUP AND TRAINING ON CERTIFICATION WORKING GROUP AND STANDARDIZATION

The Chamber Business Management Education Members of the Chamber Working Group on Certifi- level of protection of consumers’ right for safe pro- and Training Working Group was created with the cation and Standardization are involved into amend- duction as well as at preventing causeless interfer- Mission to positively influence the working environ- ing appropriate legislation through continuous co- ence into business activity; the Draft Law #7064 “On ment of educational and training organizations by operation with the Cabinet of Ministers on three of Amendments to Certain Legislative Acts of Ukraine clarifying issues and, when necessary, advocating the Draft Laws covering such issues as standards, (regarding Standardization and Obligatory Certifi- for change. It serves as a bridge of understanding technical regulation and conformity assessment cation)” initiated to the Parliament by the People`s and cooperation between the business and educa- procedures, as well as general safety of products. Deputy Ms. Nataliia Korolevska, developed to elimi- tion communities, raising awareness of the value nate technical barriers for conducting certain types of of education and training, identifying key needs of The Chamber Policy Team informed the Working business activity and to bring the legislative acts in the business, and promoting cooperation and activities Group Members about all related news, updates, sphere of technical regulation in line with the require- that satisfy those needs. and legislative changes on a regular basis. ments of the World Trade Organization and directives of the European Union; the Draft Order of the State The Chamber Policy Team informed the Working Members of the Working Group focused their atten- Committee for Technical Regulation and Consumer Group Members about all related news, updates, tion on a number of legislative initiatives which impact Policy “On Amendments to the List of Products Sub- and legislative changes on a regular basis. the sphere of technical regulation in Ukraine including: ject to the Obligatory Certification in Ukraine regard- the Draft Order of the State Committee on Technical ing Exclusion of the Food Products from the List”. Regulation and Consumer policy “On Amendments to the List of Production, subject to Obligatory Certi- The Chamber Policy Team was responsible for tak- fication in Ukraine”; the Draft Law #6694 “On Market ing the recommendations and amendments devel- Supervision and Control of the Production”, aimed at oped by the Working group forward and monitoring creating legal and institutional basis for the introduc- the process in Parliament ensuring that the Chamber tion of market supervision in Ukraine, increasing the Members’ viewpoint is taken into consideration.

89 The Chamber Committees and Working Groups

WORKING GROUP ON GMO REGULATION

Due to the importance of the issues in regards to hu- The new procedure has raised serious concern Among the important pieces of legislation that man health and environmental safety as well as due among the business community and the Chamber Members of the Working Group focused their to the influence that this issue has on the business Policy Team has proactively responded to this par- attention on was the Draft Law # 6001-1 “On climate the Policy Team of the American Chamber ticular policy need on January 13th by gathering Amendments to Certain Legislative Acts of of Commerce assembled in 2009 a special Working interested Members of the Chamber’s GMO Work- Ukraine on Providing with Information on Ge- Group on GMO Regulations. ing Group. The Chamber Members discussed the netically Modified Organisms Contents in Prod- situation and possible actions that might be taken to ucts”, aimed at eliminating unnecessary barriers The Working Group consists of interested Chamber appropriately address the issue taking international to the development of food industry and avoid- Members who are professionals in their respective best practices as well as the needs of consumers ing unreasonable expenses of business entities fields and can participate in discussion on GMO into account. and bringing state legislation into conformity regulation from the short as well as from the long- with European legislation; Draft Resolution of term perspective and contribute positively to the Representatives of the Chamber Membership the Cabinet of Ministers of Ukraine “On Approv- process of preparing the position of the Chamber confirmed their strong concern in regards to al the Procedure of GMO labeling”, developed as well as further proposals to be submitted to the the implementation of mandatory labeling of by the State Committee on Technical Regula- Government to establish legal and transparent rules all food products with “GMO” or “GMO Free” tion and Consumer Policy; Draft Order of the for this sphere to ensure that the concerns of the le- notes as this decision is not aligned with EU Ministry of Healthcare of Ukraine “ On Confirma- gitimately operating business community are taken Directives and contradicts current practices in tion List of Food products to be subject of GMO into account. the regulatory sphere and then addressed the Control”, aimed at regulating of GMO Products Prime Minister Yulia Tymoshenko and Head of and products that contained GMO circulation, The Chamber Policy Team was responsible for tak- the State Committee for Technical Regulation determining the list of this products for public ing the recommendations and proposals developed and Consumer Policy Larisa Losyuk with letters disclosure as well as improving safety and qual- by the Working Group forward and monitoring the regarding a moratorium on enterprises inspec- ity of food; the Draft Resolution of the Cabinet process of implementation. tions, which should be held in accordance with of Ministers of Ukraine “On Certain Issues of the mentioned Laws. the State Committee of Veterinary Medicine of On December 29th, 2009 the President of Ukraine, Ukraine regarding the Registration of Feedstuff Viktor Yushchenko, signed Law of Ukraine #3230 On January 21st the Members of the Chamber GMO Sources, Feed Additives and Veterinary Prod- “On Amendments to the Law of Ukraine “On Safety Working Group met with Mrs. Ksenia Liapina, Mem- ucts”, aimed to harmonize the state registration and Quality of Food Products (regarding citizens’ ber of the Parliament. The main goal of the meeting of GMO, feedstuff sources, feed additives and informing on GMO in food products)” and Law of was to share concern of the entire Membership and veterinary products that contain GMO or are de- Ukraine #4437 “On Amendments to Some Laws of to develop possible steps for further cooperation rived from their use. Ukraine regarding Informing on GMO Components with the Parliament, which would allow amending the in Products”. mentioned legislation in the nearest future.

90 The Chamber Committees and Working Groups

ILLEGAL SEEDS WORKING GROUP CORPORATE Members of the Seeds Working Group are involved The Seeds Working Group engaged all interested into consideration of the Draft Law “On Amendments Chamber Members, who are professionals in their re- RAIDERING to the Law of Ukraine “On Seeds and Planting Stock” spective fields, to contribute positively in the process of a properly drafted Seed Law is very important for all- reviewing the draft legislation to ensure that the con- WORKING seed companies operating in Ukraine and enhance- cerns of the legitimately operating business community ment of regulatory legal framework as well as intro- are taken into account during the process of adoption. duction of new definitions to the Law shall fill the gap GROUP and improve the Seeds legal environment in general The Chamber Policy Team was informing the Work- to facilitate the business growth and adhere to the ing Group Members about all related news, updates, international standards. and legislative changes on a regular basis. The objective of the Chamber’s Illegal Corpo- rate Raider Attacks Working Group is to develop propositions for protection of property rights, including prevention of illegal corporate raider attacks and regulation of corporate conflict, that JOINT STOCK COMPANY (JSC) WORKING GROUP continue to be among essential problem areas in Ukraine. Corporate legislation in Ukraine has been developing without a unified strategic ap- Due to importance of the Joint Stock Company Law for process of reviewing the draft legislation in order to proach in the past. As a result, it tends to be Ukraine, its investment climate, especially for protect- ensure proper consideration of the concerns of le- fragmented, incomplete and, in some cases, ing current investors and attracting additional invest- gitimately operating business community during the contradictory in nature. Moreover, such corpo- ments, the Chamber Policy Team assembled a special process f passing and signing into Law this impor- rate legislation creates obstacles for effective Joint Stock Company (JSC) Working Group several tant piece of legislation. business activity and for attraction of needed years ago. Members were working in many different investments. It also causes high transaction ex- directions to prepare the text, to advocate on main The Chamber Policy Team informed the Working Group penses for business operations. ideas to be included into the draft as well as to edu- Members about all related news, updates, and legisla- cate and popularize the idea of adopting modern joint tive changes on a regular basis and was responsible The Chamber Policy Team was informing the Work- stock company legislation in Ukraine. The Chamber’s for taking the recommendations and amendments de- ing Group Members about all related news, updates, representatives regularly took part in the activities of the veloped by the Working group forward and monitoring and legislative changes on a regular basis. working group, established by the State Commission the process in Parliament ensuring that the Chamber on Securities and Stock Market, to finalize the draft and Members’ viewpoint is taken into consideration. agree with its many stakeholders. In 2010, the Chamber JSC Working Group contin- The Chamber JSC Working Group consists of in- ued its activities focused on elaboration of amend- terested Chamber Members, professionals, in their ments needed to be approved for proper implemen- respective fields and can contribute positively to the tation of the Joint Stock Companies Law. 91 The Chamber Committees and Working Groups

WASTE PACKAGING MANAGEMENT WORKING GROUP

Members of the Chamber Waste Packaging Work- well as a court decision that were all subsequently ation in the waste packaging sphere. Then in ing Group are working on amending of appropriate ignored by the Cabinet of Ministers. September Chamber confirmed our commit- regulatory legislation through regular and continu- ment actively advocating the Draft Law # 1415 ous cooperation with the Cabinet of Ministers of In April the Chamber together with other lead- “On Waste and Waste Packaging” that unfortu- Ukraine in regards to the three Draft Laws dealing ers of the business community addressed the nately was rejected by the Parliament on Sep- with the system of collecting, sorting, transporta- new Government regarding the ongoing situ- tember 23rd, 2010. tion, recycling and utilization of waste as a second- ary raw material. The main goal is to develop such waste packaging management system in Ukraine, which will be harmonized to the best international practices and will serve the interests of all sides involved in the process – Ukrainian private sector, population and Government.

The Chamber Policy Team was informing the Working Group Members about all related news, updates, and legislative changes on a regular basis.

Unfortunately the existing system of waste packag- ing management is ineffective, corrupt and does not comply with the world practices and EU legisla- tion; in particular the EU Directive 94/62/EU dated December 20, 1994 “On Packaging and Waste Packaging”. In 2009 the situation took a turn to the worse after the Cabinet of Ministers adopted the Resolution providing changes to Resolution #915 dated July 26th, 2001 “On Implementation of the System of Collecting, Sorting, Transportation, Re- cycling and Utilization of Wastes as Secondary Raw Materials” #508 dated May 20th 2009. Several at- tempts to improve the situation were taken includ- ing a Decree of the President of Ukraine, decisions of the National Security and Defense Council as 92 Chamber Networking & Social Activities

Chamber Networking & Social Activities

Chamber English Language Movie Premiere 93 Chamber Networking & Social Activities

One of the main pillars of the Ameri- can Chamber of Commerce in Ukraine BUSINESS NETWORKING (Chamber) activities has been provid- ing Members with effective, innovative Captains of Industry Events Chamber VIP Guests had a unique opportunity to and enjoyable Networking opportuni- experience a multimedia presentation about beer, ties that are segmented according to The Chamber Captains of Industry events take place highlighting the global nature of the product. Special the differing needs of the Chamber’s a few times during the year providing the senior most tours around the brewery provided insight into the diverse Membership. representative of Chamber Member Companies, mystery of beer production. Also, Chamber Captains Ambassadors and other prominent guests an op- of Industry in attendance had an opportunity to take home some great mementos from the evening. The Chamber is proud to organize high- portunity to engage in high-level Networking with fellow Members and VIP guests while enjoying deli- ly successful Networking events every cious food and beverages in an interesting venue. Business Networking Cocktails year. The Chamber’s dedicated Events Team works on the following grouping On February 17th, 2010 the Chamber in conjunc- of events that have different target mar- tion with the Association of the French Business kets are segmented and fulfill differing Community in Ukraine was glad to host the next se- nior level Event COI Housewarming Party that took needs: Business Networking, Social/ place in the Chamber’s new Reception Hall. Live or- Family, Team Building and Corporate chestra music combined with delicious food and bev- Social Responsibility related events. erages made for an exceptional Networking evening.

In April and June 2010 Captains of Industry events were organized in conjunction with the Embassy of the Republic of South Africa and the Embassy of the United Mexican States for the special 2010 FIFA World Cup Opening Ceremony and the First Football Battle between the soccer teams of Mexico and the South Africa. Chamber “World Button Day” Business Networking On November 4th, the American Chamber of Com- Cocktail in conjunction with Ukraine-Japan Centre merce in conjunction with Chamber Member Sla- vutich, Carlsberg Group was pleased to invite all Chamber Captains of Industry (COI) and Ambas- Networking Cocktails remain one of the most pop- sadors to a special COI Event entitled “Carlsberg ular events in the Chamber’s Networking offerings Beerfest with the Chamber” which took place at the and over the years has grown dramatically and is al- very heart of the Slavutich, Carlsberg brewery in the ways a very effective Networking opportunity open to Chamber COI Event Corona’s Mexican Fiesta outskirts of Kyiv. all Chamber Members. 94 Chamber Networking & Social Activities

One of the hallmarks of a Chamber Networking Cock- sure that Chamber Members have a nice evening. tail is that guests have an opportunity to Network with Chamber continued to introduce new and interest- the right people in a relaxed atmosphere and these ing themes for each Business Networking Cocktails events are usually hosted by one of the Chamber including co-hosting with other business clubs and Gourmet Club Restaurants who work hard to en- associations active in the Ukrainian market.

Chamber “May Holidays After Party” Business Networking Cocktail

In 2010 the Networking Cocktails included: January Chamber Traditional “Welcome Back” Networking Cocktail at Arizona BBQ; Chamber “Pre-elections” Business Network- ing Cocktail at Swing Restaurant; “St. Patrick’s Day” at O’Brien’s Irish Pub; “Anniversary of the Opening of the First McDonald’s in the World” at the 4th world busiest McDonalds at railway station; “May Holidays After Party” at D’Lux Complex; “Eat Your Vegetables Day” at L’Accento restaurant; “Summer Leisure Day” at Kureni restaurant; Annual Tropical Boat Cruise; Chamber Traditional “Welcome Back” Net- working Cocktail at Arizona BBQ; “United Na- tions Day” at Decadence House; “World Button Day” at Lucky Pub; “Get to Know the Candi- Chamber Summer Leisure Day Business Networking Cocktail dates” at O’Brien’s Irish Pub. 95 Chamber Networking & Social Activities

Membership Card Events to Network while enjoying live music and delicious food, cold draft beer, and soft drinks in the Cham- Membership Card events are targeted to those ber’s excellent new offices. Members who are holders of the Chamber COI and Silver Membership cards bringing them additional The Chamber in conjunction with International Turk- benefits besides the wide variety of discounts on of- ish Ukrainian Businessmen Association was pleased fer throughout Ukraine. to invite Chamber Membership Card Holders to the Chamber Membership Card Event that took place at Tike Restaurant. All attendees got the op- portunity to taste the most delicious dishes from Turkish cuisine kindly provided by Tike Restaurant. Guests also had a chance to Network in the relaxing atmosphere with live music from the 80s while enjoy- ing free cold draught beer.

The Chamber brought together Chamber Member- ship Card Holders to rock ‘n’ roll away at new exclu- Chamber YP-Net CSR Event Who Let the Dogs Out sive Chamber “Endless Summer” Beach Party “Who Let the Dogs Out?”. This event provided event with special guest Sergiy Kostetskiy who pro- desperately needed assistance in helping homeless vided a dancing workshop. animals that are living in the “Sirius” shelter waiting for adoption by a loving family. Young Professional Network The American Chamber of Commerce together with The Chamber’s Young Professionals Network’s Kyiv NGOs-partners and initiative citizens were proud Chamber Membership Card Event “Turkish Delight” (“YP-Net”) mission is bringing young professionals to invite all interested Young Professionals to gather together to motivate them to take a more active role together for the project “Let’s do it Ukraine! Let’s The Chamber invited COI & Silver Membership Card in business, social and community life in Ukraine. make Kyiv Clean!” as a part of an international ini- Holders to the Chamber Membership Card Event tiative “Let’s do it world!”. The objective of the action that took place at the Bakkara Art-Hotel to enjoy YP-Net, under the auspices of the Chamber, is the was to increase the sense of personal responsibility the picturesque Dnipro riverside. All attendees got a premier vehicle for expanding social networks, fos- for the cleanliness of residents of Kyiv. great opportunity to spend time in the relaxing atmo- tering professional and intellectual growth, and sus- sphere of live jazz music and refreshing design of the taining informational exchange within the diverse The Chamber also host a fun Chamber YP-Net Bakkara Art-Hotel. community of Chamber Young Professionals. “Heaven and Hell” Halloween Party where Young Professionals had an opportunity to enjoy another The Chamber was happy to invite Chamber Mem- The Chamber was excited to organize another op- great Annual Halloween celebration with the Cham- bership Card Holders to a special “Housewarm- portunity for our Members to get involved and be ber including fun competitions as well as the Best ing Party” to discover the Chamber’s new home. socially responsible through participating in the Costume contest turned the evening into a truly un- Chamber Membership Card holders had a chance upcoming Chamber CSR YP-NET Event entitled forgettable event. 96 Chamber Networking & Social Activities

phisticated marketing execs that enjoy the evening Chamber Marketing Club and make valuable contacts.

The Chamber and Pulse replaced brain-storm- ing with brain-picking. All attendees had the op- portunity to gather insight from 6 leading marketing professionals in 6 different spheres of business on one single Marketing Club night, scanned the busi- ness environment for opportunities and enjoyed the penthouse star-lit view of the Chamber’s brand new offices while getting the first-hand inside scoop from some of the best marketing minds around.

The Chamber Marketing Club in conjunction with Chamber Member Pulse introduced Group’s Al- exander Komarov, who has been observing the new rules of media, who presented conclusions on market volumes in 2010 and analyzed impact factors on market development and price setting in upcoming 2011.

Chamber Travel Club

The Chamber in conjunction with our first event Primary Sponsors, Sky Travel HRG Ukraine and Premier Palace Hotel, continues a series of in- novative Networking and educational events, entitled The Chamber Travel Club. The main idea of the Chamber Travel Club gathering is to offer a new and innovative platform under which everyone is able to obtain useful information re- Chamber Marketing Club socialize and Network while sharing best practices garding new possibilities and opportunities in and catching up on the last trends in the fast paced the sphere of business tourism, leisure and hos- The Chamber in conjunction with our first event Pri- and creative sphere of marketing in Ukraine. The tar- pitality offers and special programs and packag- mary Sponsor, Pulse, continues a series of innova- get audience is focused but not limited to marketing, es, discounts for transport, new tourism venues, tive Networking and educational events, entitled The PR, advertising and other similarly related spheres and other useful In-Brief helping our Members Chamber Marketing Club, where the leading market- of activities. During Marketing Club gatherings, all to be successful and save money in the sphere ing and advertising minds in Ukraine join together to guests are surrounded by a sea of hip, smart and so- of corporate and leisure travel. 97 Chamber Networking & Social Activities

SOCIAL/FAMILY AND TEAM BUILDING EVENTS

Football Tournaments In March 2010 Annual Chamber Indoor Football The Chamber hosted the IX Chamber Annual Championship Cup gathered 18 teams and lasted Outdoor Football Tournament where 18 teams The American Chamber of Commerce in Ukraine 2 weekends in a row. All the matches took place in proudly represented their companies during the (Chamber) has been organizing Annual Indoor and the professional gym of NUFT (National University of competition which highlighted team work and a Outdoor Football Tournaments for many years and Food Technology). healthy lifestyle through sport. this fun and highly competitive sporting event is an excellent team building and Networking opportunity The following participants took part in the Tourna- This year teams participated at the football that has grown in size and popularity among Cham- ment: KPMG, Winner Imports Ukraine, Coca-Cola field “Start” including: Coca-Cola Beverages ber Members bringing out the best the Membership Beverages Ukraine, Monsanto Ukraine, LTD, Baker Ukraine, Horizon Capital, Piraeus Bank ICB, has to offer. It is an exciting competition that high- Tilly Ukraine, Horizon Capital, GlobalLogic Ukraine, US Embassy, Slavutich, Carlsberg Group, lights sportsmanship and enables employees of Piraeus Bank ICB, Shell, Euro Leasing, Kyiv-Atlantic PricewaterhouseCoopers, Ernst & Young, Member companies to show off their talents both Ukraine, Yug Contract Co., Ltd., US Embassy, Sla- OK Internet, DenzaWorkspace, Premier Pal- inside and outside the office. vutich, Carlsberg Group, Sitronics IT (Kvazar Micro), ace Hotel, Alcatel-Lucent Ukraine, PepsiCo PricewaterhouseCoopers, Ernst & Young, Alfa-Bank Ukraine, Swedbank JSC, SC Johnson, JT (Ukraine), PJSC. International Company Ukraine, Syngenta, Desnagrain, Syngenta. Winners of the 2010 Annual Chamber Indoor Foot- ball Championship Cup were: • 1st place — ISTIL Group • 1st place — Coca-Cola Beverages Ukraine • 2nd place — PricewaterhouseCoopers • 2nd place — Kyiv-Atlantic Ukraine • 3rd place — Slavutich, Carlsberg Group • 3rd place — Slavutich, Carlsberg Group According to our referees the following players won The Tournament’s referees also awarded winners in in the following nominees: the following categories: • Best Player — Mr. Viacheslav Listopad • Best Player — Coca-Cola Beverages Ukraine Lim- ited — Maxim Rudnitskiy (ISTIL Group) • Best Forward — Slavutich, Carlsberg Group — • Best Goalkeeper — Mr. Igor Bolotnov Loyko Serhiy (Coca-Cola Beverages Ukraine Limited) • Best Full-Back — Kyiv-Atlantic Ukraine — Viktor • Best Full Back — Mr. Igor Tonev Polishchuk (PricewaterhouseCoopers) 2010 Chamber Indoor Football • Best Goal-keeper — Coca-Cola Beverages • Best Forward — Mr. Sergey Plaksin Ukraine Limited — Vitaliy Yuhimchuk (Slavutich, Carlsberg Group) Championship Cup Winners 98 Chamber Networking & Social Activities

VI Paintball Tournament

The Chamber continues its traditional Paintball Tourna- Nominees: ments adding not only team building value but family fun as • Best Player — Nikolay Mamaev well. In July 2010 teams will be enjoying wonderful summer (Avis Ukraine) day outside playing paintball, cooling off with an exciting • Miss Paintball — Tatuana Shulieva game of water soccer, enjoying tasty snacks and cold bev- (Avis Ukraine) erages with the excitement of a fast action paintball. • Last hero — Anton Korobeynikov Happy winners of this year Tournament have become: (Sayenko Kharenko) • Voroshylovskiy shooter — Svitlana • 1st Place — Deloitte. Krakhmalova (Paritet Law Firm) • 2nd Place — Honda Ukraine LLC • For Heroism — Olesya Kulikova • 3rd Place — Kyivstar GSM JSC (ContourGlobal Ukraine)

VI Chamber Paintball Tournament

Chamber Annual Bowling Tournament Winners

Chamber Annual Bowling Tournament

American Chamber of Commerce in Ukraine held another fun sport and team building event in autumn 2010. 3 nights of competitive bowling with complementary drinks and great prizes for all participants attracted attention of the Cham- ber Members.

• 1st Place — “Snipers” Credit-Rating LTD. • 2nd Place — Premier Palace • 3rd Place — Alfa Team (Alfa Insurance)

• Best Female Player — EBRD • Best Male Player — Premier Palace 99 Chamber Networking & Social Activities

Family Events have told more about the past life of the Ukrainians American Independence Day Picnic then an open-air real size model of the Ukrainian vil- Family oriented events remain popular within the lage which in spite of all the industrial development In 2010 the Chamber celebrated American Independence Chamber community gathering parents and kids has managed to preserve the spirit and national col- Day Picnic and it is with no doubt, the biggest and the most who are able to play sports, celebrate national holi- or of the Ukrainian heritage. popular event among Chamber Member Companies. For days and work together for the benefit of charities all these years Picnic was growing in popularity and scope, and those who are in need. English Language Movies Premieres bringing more Sponsors and guests, and constantly im- proving to bring the best to the membership. In 2010 the Chamber invited all interested Chamber Members to a Chamber Family Event entitled This year over 4000 attendees had an opportunity to “Easter Egg Hunt” as well as exciting Family Event participate in all kinds of games and contests while entitled “Visiting Ukrainian Village” where all at- enjoying live musical entertainment from well-known tendees had a wonderful opportunity to Network, en- performers and DJs, children playgrounds, fireworks, a joyed the beautiful weather that spring has brought with Grand Raffle, and of course, tasty food and cold bever- it and the hospitality of Dukhmyana Pich Restaurant. ages. Kids had fun in the Kid’s Zone where every child walked away with a goodie bag filled with great stuff.

The event wrapped up with a fantastic fireworks dis- play sponsored by TNK-BP!

Chamber English Language Movie Premiere We would like to thank all of our GUESTS who came out to enjoy the Picnic as well as the EXCELLENT One of the favorite Family Events are English Lan- Sponsors of the 2010 American Independence Day guage Movie Premiers with the Chamber, where Picnic with whose generosity and active participation Members can gather with friends and family and the event was even more successful than last year! watch an interesting movie in a good company, en- joying complimentary drinks and snacks.

Chamber Family Event “Excursion to Pirogovo” In 2010 the Chamber held 15 Movie Nights. Cham- ber Members had an exclusive opportunity to ex- The Chamber hosted Special Family Project Excursion perience a sneak-peak screening of the follow- around Kyiv — “The Old Mystery of Podil” — a walk- ing movies in English: “Valentine’s Day”, “Sex ing tour through the ancient district of Kyiv -Podil — dis- and the City - 2”, “Going the Distance”, “Life covering interesting and off the beaten path treasures as We Know It”, “Harry Potter” and other movie that many people do not get a chance to experience. premiers: “Alice in Wonderland”, “The Backup Plan”, “Toy Story 3”, “Cats & Dogs 2: The Re- Another Chamber Excursion took place at the pictur- venge of Kitty Galore”, “Salt”, “Karate Kid”, Chamber Annual Charitable American esque open-air Pirogovo Museum. Nothing could “The Other Guys”, “Social Network”. Independence Day Picnic 2010 100 Chamber Networking & Social Activities

7. Euro Leasing SPECIAL THANKS TO THE 8. INGO Ukraine, PJSIC 9. Kyiv Weekly (Evolution Media) PICNIC SPONSORS 2010: 10. L’Accento 11. Lavina Concert 12. MTS (Ukrainian Mobile Communications CJSC) PRIMARY SPONSORS: 13. Premier Hotels Primary Beer Sponsor: 14. Radioaktive Film Slavutich, Carlsberg Group 15. SICH SECURITY SERVICES Primary Soft Drinks Sponsor: 16. Tabasco 6. Deloitte. Coca-Cola Beverages Ukraine Limited 17. Times Media Group™ 7. Delta Medical 18. Ukraine International Airlines (UIA) 8. DHL Kid’s Zone Sponsor: 19. Ukrainian Journal Business Law Coca-Cola Beverages Ukraine Limited 9. iUA Music 20. Yuridicheskaya Practika Publishing 10. Imperial Tailoring Company Fireworks Sponsor: 21. Zinteco 11. Leater TNK-BP Commerce 12. Mars Ukraine English Language Media Partner: SILVER SPONSORS: 13. Mary Kay What’s On Kyiv 1. AIR FRANCE-KLM Group in Ukraine 14. Motorola 2. ClearWater Ukraine 15. PUMA Ukraine GOLD SPONSORS: 3. KLS Ltd 16. RadissonSAS Hotel Resort Alushta 1. Amarcord-Alex Lakomka 4. Kraft Foods Ukraina 17. Radisson Blu Hotel, Milan 2. American Medical Centers 5. METRO Cash & Carry Ukraine 18. United Parcel Service 3. Boris, Ltd. 6. Office Solutions Ukraine 19. YUG Contract Co. 4. Delta Air Lines, Inc. 7. Procter & Gamble Ukraine LLC 5. DIALOG PRESS Ltd 8. Premier Palace Hotel CATERING PARTNERS: 6. Ernst & Young LLC 9. PricewaterhouseCoopers 1. Arizona BBQ 10. VOLIA 2. Royal Catering Services 11. Wizz Air Ukraine Airlines LLC VOLUNTEER SPONSORS: BRONZE SPONSORS: 15. American Councils for International Education: 1. 3M Ukraine ACTR/ACCELS 2. Avis Ukraine (CFI VIP-Rent) 16. Brain Source International 3. Cargill AT, CJSC 17. DPD Ukraine 4. Citibank, PJSC 18. Staff Service Ukraine 5. Chadbourne & Parke LLP 19. Yug Contract Co., Ltd. 101 Chamber Networking & Social Activities

ANNUAL EVENTS

On January 27th the American Chamber of Commerce hosted tra- dition all Annual Members Apprecia- tion Reception and New Chamber Discount Card Presentation that gathers together Chamber Member decision makers.

All guests were able to enjoy the ex- hibition from Chamber Discount Card Program Participants and Chamber Gourmet Club restaurants provid- ing an opportunity for the Member- ship to familiarize themselves with the wide variety of high quality goods and services on offer through this exiting Member 2 Member Discount Program.

Annual Chamber Members Appreciation Reception 102 Chamber Publications

Chamber Publications

103 Chamber Publications

ANNUAL REPORT CHAMBER MEMBERSHIP DIRECTORY AND COUNTRY PROFILE

The Chamber Annual Report is an electronic publi- 2011 Chamber Membership Direc- cation that is designed to summarize the Chamber’s tory and Country Profile is a highly activities, progress and success during the past year sought after Membership benefit that highlighting Chamber Advocacy and Lobbying Activ- provides contact details and descrip- ities, Committees and Working Groups Update, Net- tion of each Member company, high- working and Family Events Description, Publications ly-valuable Country Profile section, and Information Support, Discount Card Program as well as other useful information and Gourmet Club Information, and much more. about the Chamber and the busi- ness and diplomatic community ac- tive in Ukraine. It is available in both – best-quality printed version and user-friendly electronic edition. High level decision makers of the lead- ing international and local Member Companies who operate on the terri- tory of Ukraine and who are the larg- est strategic and institutional inves- tors in Ukraine are the readerships of the Chamber Membership Directory, as well as key decision makers in the EU and US, diplomatic and do- nor missions, Ukrainian governmen- tal authorities and Ambassadors of Ukraine abroad.

The Membership Directory also con- tains comprehensive Country Pro- file Section of the Membership Di- rectory. Country Profile is comprised of analytical articles that relate to specific economic and business in- terest areas as well as political trends kindly provided by our Members who are experts in their respective fields. 104 Chamber Publications

tronic magazine Chamber In-Brief aimed to inform Chamber Weekly Bulletin CHAMBER ELECTRONIC our Members about Networking events and Policy Member Companies receive an HTML based elec- news, to provide Committee highlights, as well as tronic Weekly Bulletin each week via e-mail which PUBLICATIONS providing Members with an opportunity to share their describes activities in and around the Chamber company news and important events. which will take place in the near future. It provides schedules and agendas for upcoming Com- The American Chamber of Commerce in Ukraine Chamber Advocacy and mittee meetings and other activities that the (Chamber) is committed to inform the Membership Committee Update Chamber organizes as benefits for the Mem- regularly and in a timely manner on key develop- bership such as: upcoming Chamber Business ments, progress and news related to the Chamber’s This concise and innovative electronic publication reformatted into brief and friendly manner is sent to Networking Cocktails, sport events, “In-Focus” and advocacy and lobbying activities aimed at protecting “Insiders View” meetings, English Language Movie Members’ interests and increasing Ukraine’s overall Members every Thursday providing an overview of the Chamber’s current Advocacy and Lobby- Premieres, and many other interesting activities or- competitiveness. ganized by the Chamber to benefit its Members. The main Chamber communications channel is daily ing initiatives including: ongoing policy activities and progresses; communication with appropriate Ukrai- In 2010 the Chamber has decided to amend the ex- comprehensive and professional electronic publica- isting format of the Weekly Bulletin aiming to make it tions and constantly updated highly trafficked website nian State authorities; success stories; comprehensive overview of the engagement of the Chamber Industry more friendly and brief, as well as innovative in order and SharePoint portal. Electronic publications are to satisfy the Members’ needs to upmost. sent to our Membership and externally to the wide and Sector specific Committees and Working Groups. The publication serves as an effective communica- variety of individuals and organizations that we work Chamber In-Brief with in the process of obtaining positive changes in tion tool providing Member companies with insight the Ukrainian business and investment environment. and early warnings regarding issues that may impact The Chamber Board of Directors, Policy Team together their business and inviting Members, who are experts with Chamber Committees and Working Groups regu- in their respective fields, to share information and join larly communicate their activities to the Membership efforts to successfully address common issues that via electronic publications including but not limited impact the investment community active in Ukraine. to: Weekly Bulletins, Policy Flashes, Advocacy and Committee Updates, Legislation Update, In- Chamber Legislation Update formation Bulletins and President’s Messages, This important and professional publication goes out Chamber In-Brief electronic magazine. each Friday to interested Members in order to outline In addition to the Weekly Bulletin which is sent out ev- key developments in national legislative arena. Continu- ery Monday, each Member receives the Advocacy and ing to improve and strengthen communication flow the Committee Update. Policy Flashes are aimed to inform Chamber has decided to amend a format of this impor- interested Members properly and in a timely manner on tant publication making it more compact and brief from relevant issues that may impact their business and are the fall 2010. Now our readers have an opportunity to sent to those Members who request a subscription. be fully and on time briefed on newly adopted legisla- While constantly exploring ways to further improve tion and regulations, registered drafts at the Parliament the cooperation between the Chamber and Mem- as well as drafts placed on the websites of the executive ber companies, the Chamber issues a monthly elec- branch of power’s governmental institutions. 105 Chamber Publications

ing Members access to the Chamber In-Brief is an informative monthly Eng- Chamber Website WWW.CHAMBER.UA latest information, legislative lish-language electronic magazine summarizing changes, news, initiatives re- the Chamber’s activities and success, highlighting Throughout 2010 the Chamber continues to im- garding preparations to this the Chamber’s Advocacy and Lobbying initiatives, prove, develop and incorporate innovations into its big and very important event Committees and Working Groups activities, as well contemporary web-site to provide relevant infor- for Ukraine and especially its as Networking events, Gourmet Club News and mation as well as improve communication with the competitiveness in the world. separate section devoted to Chamber Official Ser- Membership in an easy to navigate platform. vice Providers Highlights. The special section devoted The Chamber’s website is an important means of to key Chamber’s analytical President’s Message communication and up-to-date source of informa- working product “Partnership tion for all our Members and interested parties in for Successfully Compet- A brief Executive Summary distributed via e-mail ex- Ukraine and abroad. It contains a wide variety of useful ing in the Global Economy” clusively to the senior management of the Chamber information about Chamber’s Lobbying and Advocacy outlines major developments Membership that highlights policy and advocacy activities, Networking events, Committee activities, as well around increasing aware- initiatives undertaken by the American Cham- as tax, legal, banking and legislative updates. ness of both the Government ber of Commerce on behalf of our Members of Ukraine and other decision and other relevant information that may be of interest The Chamber’s website is also the source of important makers on this important and to senior management regarding Chamber activities news and useful information about our Member Com- comprehensive reform agenda as well as containing invitations to the senior most panies. All Members have the possibility to post press aimed at increasing Ukraine’s represenatve of Member companies to the Captains releases and newsletters to the Members News Sec- overall competitiveness. of Industry Meetings. tion on the Chamber’s website. This value added ben- efit is provided to Chamber Members free of charge. Since the Chamber is an active participant of the Chamber Membership Update Economic Committee under the President of Ukraine In 2010, the vide variety of information on the Cham- and other relative advocacy and lobbying venues, the Chamber Membership Update welcomes NEW ber events and activities has become available for Chamber’s website has a special Advocacy section Chamber Members and introduces them to the both Ukrainian and English speaking audience with containing most relevant information regarding Cham- Chamber “family” of companies in order to assist new the help of upgraded bi-lingual web site. ber’s involvement into decision making process. In Members in expanding their business Network and old addition, Members can find on the Chamber’s web- Members to identify potential partners and clients. The Chamber’s website has different sections which site information on the Ukraine-WTO relations, up-to- add value to the Members by effectively communicat- date news related to Ukraine-EU integration process- This important and informative publication is sent ing key Chamber activities, initiatives, success stories es, procedures, principles and requirements. to entire Membership every Wednesday and in- keeping Members updated on the current situation cludes important information regarding changes of in the country, including current global financial cri- Improved Press Room, comprehensive site map Chamber Captains of Industry (COIs) as well as sis and its repercussions for business in Ukraine, In- are sections aimed to make the Chamber’s web- office locations and contact information to en- terfax news, Tax/Legal/Economic updates. There is site easy to navigate and provide maximum infor- sure that the Chamber business community remains also a section devoted to EURO 2012 as one of the mation for the Members. up to date on all of this valuable information. main Policy Priorities of the Chamber for 2010 giv- 106 Chamber Gourmet Club

Arizona BBQ Chamber Gourmet Club

107 Chamber Gourmet Club

The Gourmet Club is a network of best restau- Throughout 2010 Gourmet Club has been work- bers. Highly increased visiting ratings indicate of rants in Kyiv, the ultimate goal of which is provid- ing toward expanding the number of its active the fact that Gourmet Club web-site is the number ing Chamber Members with awareness of most Members endowing Chamber Card-holders with one place Chamber members refer to when look- luxurious and delicious restaurants ready to wel- variety of choices and venues. We are proud to ing for a place to eat out. The above mentioned come Chamber Members with special offers and announce that the number of Gourmet Club Mem- results and accomplishments were gained due to discounts. bers has risen dramatically reaching the point of the active Internet Marketing Advertising Cam- 70, having 30 more new and exclusive restaurants paign the Chamber has organized together with happy to greet Chamber Members. Among them Chamber Member Prodigi Marketing Agency. are such restaurants as Varenichnaya #1, Nobu, cafe “Leto”, Karavan, Bocconcino, Veranda upon Dnieper, Pena, Stare Zaporizhzhe, Idalgo, Dum- ka, Balance Menu, Patifon Karaoke Club, Moet & Chandon, Arena Beer House, Arena Dance Club, Martini Terrazza, Mandarin, Dukhmiana Pich, Bier Platz, IQ bar, Khokholskiy and others.

Arena Entertainment

With the help unique advertising layouts specially developed by Chamber Member Tabasco Cre- ative Agency, Gourmet club has been actively promoted in printed media reaching all kinds of audience – from current Internet users to conser- Comme il Faut vative magazine and newspaper-readers.

In 2009 the Chamber in conjunction with Cham- Active and dynamic Gourmet Club is constantly ber Member Running Code, developed and seeking for new restaurants to join the network in launched a new Gourmet Club web – site which order to provide Chamber Member with the wid- has been successfully operating in 2010 gaining est range of benefits and discounts and satisfy all La Terrazza more and more popularity among Chamber Mem- the tastes. 108 Chamber Gourmet Club

Arena Entertainment Avalon Lounge Bar Bier Platz Catering Kyiv, Shevchenkivskiy district, Kyiv, Kyiv, "Universitet" metro station 7, Khreshchatyk Str. "Palats Sportu" metro station Leontovycha str. 3 +380 67 407 55 44 2a Basseina Str. +380 44 234 74 94 Bocconcino Arena Sport Zone Azhur disco club Kyiv, "Klovska" metro station Restaurant Kyiv, Shevchenkivskiy district, Mechnykova str. 2 Kyiv, Basseynaya str., RК ARENA "Universitet" metro station +380 44 593 37 10 ENTERTAINMENT, 2 floor Leontovycha str. 3 +380 44 492 00 00 +380 44 234 74 94 Bon-Bon Confectionery House Kyiv, "Teatralna" metro station Arena Beer House b-hush rooftop bar 3 Leontovicha st. Kyiv, Kyiv, +380 44 234 74 94 2а, Baseyna Str. 2A Velyka Zhytomyrska str., +380 44 381 91 95 +380 44 492 00 01 InterContinental Kyiv, 11 floor +380 44 219 19 19 Ciro's Pomodoro Arena Dance Club Kyiv, "Palats Sportu" Kyiv, 2a, Baseyna Str. Balance Menu metro station; +380 44 492 00 00 Kyiv, "Ploscha L.Tolstogo" metro 12 Shota Rustavelli, str. station; L'va Tolstogo str. 14 +380 44 221 45 45 Arena Entertainment +380 44 466 5 888 Delivery service of dishes Comme il Faut French Kyiv, "Palats Sportu" metro Bar on 8 fine dinning station; 2a, Baseyna str. Kyiv, "Maidan nezalezhnosti" Kyiv, "Maidan nezalezhnosti" +380 44 492 00 03 metro station metro station 5, Alla Tarasova Street Velyka Zhytomyrs'ka str. 2a, Arena Stars Cabaret (Saint Sophia Square), InterContinental, 1 floor Kyiv, "Khreschatik" metro station Hyatt Regency Kyiv hotel, +380 44 219 19 19 2a Basseinaya str, 3 floor 8th floor +380 44 209 37 97 +380 44 581 12 34 Concord Kyiv, Shevchenkivskiy district, Arizona BBQ Bellini’s Bar "Ploscha L.Tolstogo" Kyiv, Podilskiy district, "Kontrak- Kyiv, Shevchenkivskiy district, metro station tova ploscha" metro station "Universitet" metro station Pushkins'ka str. 42/4 Naberezhno-Khreshchatyts'ka Bogdana Khmel'nyts'kogo str. 53 +380 44 234 77 88 str. 25 +380 44 581 70 70 +380 44 235 95 55 +380 44 425 24 38 109 Chamber Gourmet Club

D*LUX IDALGO Kureni Kyiv, Kyiv, 8a, Brest-Lytovske Kyiv, Pecherskiy district, 3, Grushevskogo str. +380 44 227 53 81 "Arsenalna" metro station +380 44 200 90 09 Parkova road 4 IQ Bar +380 44 253 17 24 Decadence House Kyiv, Kyiv, Pecherskiy district, 25, Lva Tolstogo str. L`Accento "Palats Sportu" metro station +380 44 234 53 55 Kyiv, Pecherskiy district, Shota Rustaveli str.16 "Pecherska" metro station +380 44 206 49 20 Jardin Lesi Ukrainky blvd. 5 Kyiv, Shevchenkivskiy district, +380 44 200 50 02 Doversol "Universitet" metro station La Casa Del Habano Kyiv, Pecherskiy district, "Palats Tarasa Shevchenka blvd. 38/40 Kyiv, Pecherskiy district, Ukraina" metro station +380 44 362 12 10 "Klovska" metro station Chervonoarmiis'ka str. 81 Klovs'kyi Descent 13 +380 44 531 13 78 Karavan +380 44 492 74 48 +380 67 501 16 69 Kyiv, "Klovska" metro station Klovs'kyi Descent 10 La Terrazza Dukhmiana Pich +380 44 280 95 77 Donetsk, 80, Artyoma str Kyiv, +380 62 343 44 38 Kyiv region, Lesniki village, Khokhlovskiy Lale Cafe 4th km of the New Kyiv, "Politechnichny insitut" Kyiv, Pecherskiy district, "Maidan Obuhovskaya route metro station nezalezhnosti" metro station +380 44 22 88889 4/10 Tbiliskiy provulok Sofiivs'ka str. 14 +380 44 238 91 93 +380 44 278 75 66 Dumka +380 93 306 08 14 Kyiv, Svyatoshinskiy district, Le Grand Cafe "Svyatoshin" metro station Korsar Kyiv, Pecherskiy district, "Maidan Akademika Tupoljeva str. 20 Kyiv, Podilskiy district, "Pochtova nezalezhnosti" metro station +380 44 221 39 00 ploscha" metro station 4, Muzeyniy provulok, 01001 Sagaidachnogo Petra str. 14 +380 44 278 72 08 Grill Asia +380 44 425 55 21 +380 44 278 43 47 Kyiv, "Maidan nezalezhnosti" +380 44 425 55 78 metro station Leto cafe 5, Alla Tarasova Street Kupecheskiy Dvor Kyiv, "Resbuplikansky stadion" (Saint Sophia Square) Kyiv, metro station +380 44 581 1234 Stolychne hw. 24km Chervonoarmiis'ka str. 56 +380 67 246 62 46 +380 44 287 10 73 110 Chamber Gourmet Club

Lobby Bar Nobu Pena Kyiv, 2A Velyka Zhytomyrska str., Kyiv, "Palats Sportu" metro station Kyiv, "Zoloti Vorota" metro station InterContinental Kyiv, 1 floor Shota Rustaveli str.12 Yaroslaviv Val str. 30/18 +380 44 246 77 34 +380 44 234 17 01 Lucky Pub — Beer bar and restaurant O'Panas Petergof Kyiv, "Palats Sportu" metro station Kyiv, Shevchenkivskiy district, Kyiv, Pecherskiy district, 13 Rognidyns'ka street "Zoloti Vorota" metro station "Arsenalna" metro station +380 44 499 13 13 Tereshchenkivs'ka str. 10 6, P.Orlika vul., 01024 +380 44 585 05 23 +380 44 253 73 58 Marokana F-cafe +380 44 235 21 32 Kyiv, Pecherskiy district, Restaurant of Boutique- "Pecherska" metro station O’Brien’s Irish Pub Hotel Riviera on Podol Lesi Ukrainky blvd. 24 and Restaurant Kyiv, "Pochtova ploscha" +380 44 254 49 99 Kyiv, Shevchenkivskiy district, metro station Sagaidachnogo Petra str. 15 Martini Terrazza Restaurant "Maidan nezalezhnosti" metro +380 44 581 28 98 Kyiv, "Palats Sportu" metro station station 2a Baseina Str. Mykhailivs'ka str. 17A Roof Top Lounge +380 44 279 15 84 +380 44 561 61 81 Kyiv, "Ploscha L.Tolstogo" +380 44 279 02 14 +380 44 492 00 00 metro station Tarasa Shevchenka blvd. 5-7/29 Olivera Mocco +380 44 244 13 04 Kyiv, Pecherskiy district, Kyiv, "Maidan nezalezhnosti" "Khreschatik" metro station metro station San Tori Velyka Zhytomyrs'ka str. 2a, Khreshchatyk str. 15 Kyiv, Sagaidachnogo Petra str. 41 InterContinental, 2 floor +380 44 230 92 30 +380 44 469 49 94 +380 44 219 19 19 Moet and Chandon Summer SOHO Terrace Patifon Karaoke Klub Kyiv, Shevchenkivskiy district, Kyiv, 2a, Basseina Str. Kyiv, "Palats Sportu" metro "Lukyanivska" metro station +380 44 492 00 00 station; 2а, Baseyna str. Students'ka str. 1 +380 44 492 00 00 +380 44 484 03 51 Monaco Kyiv, Shevchenkivskiy district, Pavlin — Vocal Restaurant Stare Zaporizhzhya "Maidan nezalezhnosti" metro Kyiv, Shevchenkivskiy district, Kyiv, "Pochtova ploscha" station "Universitet" metro station metro station; Velyka Zhytomyrs'ka str. 20 Leontovycha str. 3 Sagaidachnogo Petra str. 27 +380 44 466 68 85 +380 44 234 74 94 +380 44 425 51 61 111 Chamber Gourmet Club

Swing Kyiv, Shevchenkivskiy district, "Maidan nezalezhnosti" metro station Velyka Zhytomyrs'ka str. 6/11 +380 44 279 28 65

Tampopo Kyiv, Saksagans'kogo str. 55 +380 44 289 29 99 +380 44 284 30 26

Teatro Kyiv, Shevchenkivskiy district, "Universitet" metro station Bogdana Khmel'nyts'kogo str. 53 +380 44 581 70 70 Trufel Tzar Project Terrace Kyiv, Kyiv, 1-V, Grushevskogo St. Kyiv, "Kontraktova ploscha" Chervonoarmiis'ka str. 5 +380 64 876 11 11 metro station +380 44 492 16 22 60a, Vozdvizhenska vul. Vanilla +380 44 531 99 33 Trypillya Kyiv, "Khreschatik" metro station Kyiv, Kiev oblast, Tarasa Shevchenka blvd. 2 Terracotta Novoobuhivska trassa, 27 km +380 67 506 22 01 Kyiv, Shevchenkivskiy district, +380 44 585 55 66 +380 44 235 41 85 "Ploscha L.Tolstogo" +380 44 351 78 42 metro station +380 44 585 55 72 Varenichna №1 Tarasa Shevchenka blvd. 5-7/29 +380 50 383 31 17 Kyiv, "Palats Sportu" metro +380 44 244 12 35 station; Esplanadna str. 28 +380 44 244 12 42 Tsarskoye Selo +380 44 221 95 39 Kyiv, Tike Pecherskiy district, "Arsenalna" Veranda upon Dnieper Kyiv, "Pochtova ploscha" metro station Kyiv, "Dnipro" metro station metro station Sichnevogo Povstannya str. 42 Naberezhne hw. 6-7 31, P. Sagaydachnogo vul +380 44 280 30 66 +380 44 428 72 99 +380 44 417 40 62 +380 44 254 26 44 112 Membership Discount Card Program

Membership Discount Card Program

113 Membership Discount Card Program

• Consultancy, Investment & Marketing Research • Educational & Training Services • Express Delivery Services • Healthcare and Beauty Services • Hotels • Insurance • IT/Telecom Services • Legal Services • Moving and Relocation Services • Office Furniture and Equipment • Real Estate: Offices, Leasing Services, Land Services • Retail Establishments • Travel Services

There is an increasing number of participants of the Program that grows on the regular basis. The latest Continuing to implement great new innovations that for Chamber Members. The Chamber promotes discount updates can be found at provide the Membership with exciting value added the use of Chamber Membership Cards among services the Chamber is proud to introduce the con- the employees of the Chamber Member compa- www.chamber.ua/discount cept of Membership Cards in 2010. nies to create a reputable well-recognized pro- and at the Chamber Discount Club on Chamber Unite motional vehicle for fellow Members to utilize. www.cu.chamber.ua. Now Chamber Membership Card has even more The Chamber Discount Program not only allows benefits and opportunities for fellow Chamber participating Members to raise the awareness, Members can also subscribe for RSS and get the Members. profile and revenues of their companies, but it latest updated directly to their mailboxes. also gives the representatives of every Chamber It gives Chamber Members an opportunity not only Member Company the benefit of having access to visit Chamber events, participate in raffles and to the many discounts that are on offer. win grand prizes, get the discounts on goods and services from the Member2Member Discount Card program, enjoy delicious food in best restaurants of Member companies enjoy Discounts for the servic- Kyiv which provide Chamber Membership Cardhold- es, structured by the following categories: ers with 10% and 15% discount but save money with • Advertising, Media & Printing Services new MAXI Loyalty program. • Airlines Member2Member Membership Discount Card • Business Services Program is one of the most sought after benefits • Car Leasing & Sales 114 New Members 2010 New Members 2010

• ACA Bureau • Carbon Capital Services Limited • EMI UA • Actio Law Firm • Chipita Ukraine • ENERGOBANK, PUBLIC JOINT-STOCK • AECOM • CHS Ukraine, LLC COMPANY • Agrimatco-Ukraine CJSC • City State • ERMIS DOMIKI LTD • Aisi Realty Capital LLC • Clarus Eastern Europe • Esca Food Solutions LLC • Alpcot Capital Management Ltd • Comfort Properties • eSoft • Altera LLC • DANONE LLC • Express Systems & Parts Network, Inc. • Astor-1 LLC • DataArt Solutions, Inc. • ExxonMobil International Limited • AUCHAN Hypermarket • Delta Wilmar CIS • Flextronics-Ukraine • AUTO International • Derzhzovnishinform • FM-Standard • Avellum Partners • Desnagrain • Fozzy-Food LLC, Fozzy Group • BDO LLC • Dorada Insurance Agency • Grata Consulting Group (Member of Kreston • Benefit Systems LLC • DTEK International) • BG BANK • EchoStar Ukraine LLC • HayGroup Ukraine • Boston Consulting Group Ukraine LLC • Edinburgh Business School • Health of Ukrainian People, International Charitable • Cadogan Ukraine Representative Office Foundation

115 New Members 2010

• Herbalife Ukraine • MasterCard Europe Sprl • Sojitz Corporation Kyiv Representative Office • HT Property West • Mazars Ukraine LLC • SOS Children’s Villages, Charitable Fund, • Infopulse Ukraine • Medicore LTD, LLC International Charitable Organization • Institute for Economic Research and Policy • Nemiroff Ukrainian Vodka Company • Strategy Foresight Consulting • NetCracker • SysIQ Inc. • Institute of International Education Ukraine, • Noblet Media CIS • Talent Advisors Fulbright Program • Norstone Financial Corporation • TEN Group LLC • International Financial and Legal Consulting • Novartis Pharma Services AG, Representative • Tim Kelly Group • International Institute of Business Office in Ukraine • Torrent Pharmaceuticals Ltd • International Telecommunication Company • OK Internet • Trade Guild, Ltd (TM “CDMAUA”) • Optima-Leasing / Sixt Ukraine • Tyco Electronics Ukraine Ltd • Investment Capital Ukraine • Patern Ltd. • Ukraine-Japan Center, Project of Technical • John Deere Ukraina LLC • PEP®worldwide-Ukraine Assistance • KartaMira Ltd • Phoenix Capital • Ukrainian Universal Exchange • Kateryna S. Barabash IBcontacts • Piraeus Bank ICB • UkrFinance • KEY Communications • Prodigi • Ulysses • KIY AVIA, JSC • Prominvestbank PSC • USAID Financial Sector Development Project, • KM Core • Raben Ukraine implemented by Booz Allen Hamilton • Lactalis-Ukraine • ReckittBenckiser Household & • USAID Local Investment and National • Laureate International Universities (Walden Healthcare Ukraine Competitiveness (LINC) Project University & University of Liverpool Online) • Regus LLC • USPOT Ltd • Lex Partners LLC, Attorneys at Law • RWE Dea UKRAINE LLC • V.I.Tech-Plus • LiveRepair.com, Inc. • Sandoz Pharmaceutical • Vashchenko, Bugay and Partners • Luhansk Taras Shevchenko National University • Sanofi-Aventis Ukraine LLC • Wizz Air Ukraine Airlines LLC • Magic Land • Service-Agrocenter LTD • Yuridicheskaya Practika Publishing • Marti Ukraine LLC • SMART business • Zfort Group

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