#10 is out! Ukraine’s $11.4 billion bank robbery

The crookscrooks got got away. away. The The people people stay pay

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vol. 21, issue 28 www.kyivpost.com July 8, 2016

Trump’s campaign manager haunted by past business

BY JOSH KOVENSKY [email protected]

ODESA, Ukraine – While you’re Forsaken helping out a corrupt politician, why not try to make a little (or a lot) of Little love for Kyiv in front line Donbas extra cash on the side? That’s the opportunity apparently presented in 2008 to Paul Manafort, city wracked by warfare and poverty former adviser to overthrown President Viktor Yanukovych and current campaign manager to Donald Trump, the presumptive Republican candidate for U.S. president. The story begins in March 2007,

more Manafort on page 3

Banking expert: Sector needs prosecutions, more transparency

BY BRIAN BONNER [email protected]

Yulia Kyrpa, a Kyiv lawyer who spe- cializes in banking and finance, said that “a lot needs to be done” in the nation’s banking sector to prevent large-scale fraud in the future. Kyrpa, a partner with AEQUO law firm in Kyiv, chairs the banking and financing committee of the Ukrainian Bar Association and recently served on an advisory public council of the National Bank of Ukraine. She spoke with the Kyiv Post on June 30, following the newspaper’s month-long investigation of the bank- ing sector, published in the July 1 Legal Quarterly and regular edition of the newspaper. Since at least 2008, unpunished A boy stands in the ruins of the City Hall in Toretsk, Donetsk Oblast on July 5. The building was gutted by a fire during fierce fighting in July criminal fraud, insider lending and 2014, when Ukrainian forces liberated the town from the Russian-backed separatist fighters. (Anastasia Vlasova) unpaid loans have caused at least $11.4 billion in losses in the sector – BY OKSANA GRYTSENKO Oblast to mark the two years since About 100 protesters attempted The protesters said the presence of losses ultimately paid for by Ukrainian [email protected] the city’s liberation from Russian- to block the movement of Ukrainian the Ukrainian military was provok- taxpayers or private individuals and backed separatists, an angry crowd troops around the front line city, ing shelling by Russian-separatist firms who simply lost their unin- TORETSK, Ukraine – On the confronted Ukrainian troops in the with 35,000 residents nearly 700 forces from the nearby Kremlin- sured deposits. The three compo- eve of President Petro Poroshenko’s smaller city of Toretsk, located some kilometers southeast of Kyiv. They nents of the losses include: $3 billion July 5 visit to Sloviansk in Donetsk 55 kilometers south. demanded that the soldiers leave. more Toretsk on page 18 more Transparency on page 14

National 2, 3, 15 – 19 Business 6 – 14 Follow the Kyiv Post on CURRENCY WATCH Facebook at Opinion 4, 5 Lifestyle 20 – 24 www.facebook.com/ KyivPost, and on Twitter Hr 24.81 to $1 Inside: Employment/Real Estate/Classifieds 23 at @KyivPost. July 7 market rate Advertising: +380 44 591-7788 [email protected] Subscriptions: +380 44 591-7788 [email protected] Editorial staff: +380 44 591-3344 [email protected] 2 National July 8, 2016 www.kyivpost.com JULY 8, 2016 Vol. 21, Issue 28 Copyright © 2016 by Kyiv Post The material published in the Kyiv Post may not be reproduced without the written consent Ministry touts efforts to crack of the publisher. All material in the Kyiv Post is protected by Ukrainian and international laws. The views expressed in the Kyiv Post are not down on raiders of companies necessarily the views of the publisher nor does the publisher carry any responsibility for those BY OLEG SUKHOV views. [email protected] Газета “Kyiv Post” видається ТОВ “Паблік-Ме- A commission set up by the Justice діа”. Щотижневий наклад 11,000 прим. Ціна Ministry to combat corporate raids за домовленістю. Матерiали, надрукованi в has returned property worth Hr 125 газетi “Kyiv Post” є власнiстю видавництва, billion ($5 billion) to its rightful own- захищенi мiжнародним та українським ers, Justice Minister Pavlo Petrenko законодавством i не можуть бути вiдтворенi said at a news conference on July 5. Previously businesses whose prop- у будь(якiй формi без письмового дозволу erty was seized by raiders had to go Видавця. Думки, висловленi у дописах не to court and fight for their rights for завжди збiгаються з поглядами видавця, years, Petrenko said. The commis- який не бере на себе вiдповiдальнiсть за sion’s creation in January allowed наслiдки публiкацiй. such businesses to resolve these issues within two weeks, he said. Засновник ТОВ “Паблік-Медіа” Applicants do not have to pay an Головний редактор Брайан Боннер administrative fee, Deputy Justice Відповідальна за випуск Minister Pavlo Moroz said at the Олена Невмержицька conference. Адреса видавця та засновника If a complaint is upheld, the Justice співпадають: Україна, м. Київ, 01004, Ministry blocks the registrar that violated the law, he added. However, вул. Пушкінська, 31А, 6-й поверх. the commission can only consider Реєстрацiйне свiдоцтво actions carried out by the registrars Кв № 15261(3833ПР від 19.06.09. after January 2016. Передплатний індекс ДП Преса 40528 As a result of the commission’s Надруковано ТОВ «Новий друк», work, the number of complaints against the unlawful actions of the Demonstrators protest on Feb. 16 against an alleged raider attack by lawmaker Serhiy Pashynsky against 02660, Київ, вулиця Магнітогорська, 1, employees of the registration offices Zhytomyrsky Lasoshchi, a confectionary. Pashynsky denies the allegations (Volodymyr Petrov) тел.: 559-9147 in corporate conflicts has fallen, Замовлення № 13-8040 Petrenko said. Last year it amounted and the National Anti-Corruption to 13 percent of all investments made Boiko has also been accused of a З приводу розміщення реклами to about 1,000 per month, while Bureau for investigation. in Ukraine in 2015. raider attack against the firm, which звертайтесь: +380 44 591-77-88 over the past six months there have Bunge, a U.S. food and agricul- However, some have accused the he denies. been just 900 such complaints, he ture company, is one business that Justice Ministry’s anti-raider com- Petrenko also commented on Відповідальність за зміст реклами added. recently suffered a raider attack. mission of siding with lawmaker whether the commission would con- несе замовник. Of these 900 complaints, 130 were Ukrainian corporate raiders attempt- Serhiy Pashynsky in a conflict over sider the corporate conflict around upheld by the commission, Petrenko ed to seize some of the company’s Zhytomyrski Lasochshi, a Zhytomyr the Sky Mall shopping center in Kyiv. Mailing address: said. grain elevators in Vinnytsya Oblast. confectionary company. Pashynsky Lawmaker Oleksandr Hranovsky, Kyiv Post, 31A Pushkinska, Suite 600, 6th floor He said that the problem of raid- The elevators had a storage capacity has been accused of illegally seiz- a major ally of President Petro Kyiv, Ukraine, 01004 er attacks could only be resolved of 80,000 tons. ing the company, which he denies. Poroshenko, and his business part- Advertising by launching a thorough judicial With the help of a local registrar, Pashynsky is a member of the same ner Andriy Adamovsky have been tel. +380 44 591-7788 reform. the raiders registered a parallel com- political party as Justice Minister accused of illegally seizing Sky Mall fax +380 44 591-3345 [email protected] “Raider attacks happen when pany that claimed ownership of the Petrenko, the People’s Front. from Estonian businessman Hillar Editorial staff there is a feeding ground for them – elevators, according to Oleg Bigdan, In the past, the commission has Teder. In May, a London court tel. +380 44 591-3344 corrupt courts and law enforcement head of Bunge’s legal department. decided in favor of firms allegedly ruled in favor of Teder, ordering fax +380 44 591-3345 agencies,” Petrenko said. Bunge complained to the Justice linked to Pashynsky in this conflict. control of the mall to be transferred [email protected] Subscriptions&Distribution He added that for investors to Ministry’s commission and it resolved Commenting on the issue, Petrenko to him. tel. +380 44 591-3344 come to Ukraine, they must know the issue. The registrar was blocked and Deputy Justice Minister Moroz Petrenko said the commission fax +380 44 591-3345 that the rights to their property are from accessing the state registry. said the commission had canceled the would study the case if a formal com- [email protected] inviolable and protected by the law. According to Petrenko, Bunge has illegal decisions of a registrar taken in plaint is filed against the registrars’ Employment Advertising tel. +380 44 591-3344 Petrenko also urged the commis- invested Hr 13 billion in Ukraine’s favor of Pashynsky’s opponent in the actions. Hranovsky and Adamovsky fax +380 44 591-3345 sion to send its cases to prosecutors economy, which is a sum equivalent corporate conflict, Igor Boiko. deny the accusations.  [email protected]

Happy Independence Day! Contact Interdean: People wave American flags as they take part in a 4th of July Parade in Alameda, California on Monday, July T: +38 (044) 576 7370 4. It was the 240th time the United States has celebrated the signing of the Declaration of Independence in Philadelphia, Pennsylvania on July 4, 1776, when 13 British colonies in North America formally broke away +38 (044) 384 2773 from the British crown. As usual, the public holiday was celebrated around the country with parades, picnics, E: [email protected] and spectacular fireworks displays. (AFP) www.kyivpost.com July 8, 2016 National 3 Former Yanukovych advisor did business deals in Ukraine

Manafort from page 1 According to legal documents filed by the investors, the money didn’t go when Manafort and other members where the investors thought it would, of his political team in Ukraine meaning that the PEM transfer is the set up a private equity fund with last point at which we know where Russian money with the apparent the money was located. aim of establishing a business in Instead, according to a discov- Ukraine. ery filing in a U.S. federal court, According to reports in the U.S. Gates claimed that PEM directly paid and British media, the main investor $17.8 million to a Ukrainian named in Manafort’s private equity firm was Andrey Vityukov. Russian aluminum and industrial oli- One former employee of Chorne garch Oleg Deripaska, who moved to More, who requested anonymity due dissolve the Cayman Islands-based to safety fears, said that Vityukov fund in 2014. was a lawyer who worked at the According to court filings, the company. company managed to make only one According to court filings, it’s not investment - in an Odesa telecoms at all clear where the lump sum company. actually went. However, the $19 million raised for Ukraine’s company registry does the purchase – along with $7 million not record a change in ownership in in management fees - has since Campaign chairman Paul the firm until 2010, more than two disappeared. Manafort checks the podium years after the deal was supposedly Manafort did not reply to multiple before Republican Presidential done. Before then, Chorne More was candidate Donald Trump requests for comment made through owned by a British company called speaks during an event at his attorney Richard Hibey, or to Trump SoHo Hotel, June 22 in TechCorp, which was in turn con- direct emails. The Trump campaign New York City. (AFP) trolled by the UK-registered Colberg didn’t reply to a request for comment Projects. either. Neither did Deripaska nor his proceedings. Cyprus legal structure called a “spe- Holdings, according to the filing. Colberg was controlled by two representatives respond to inquiries. Manafort ran the firm with two cial purpose vehicle.” That firm would then buy Chorne Seychelles firms: Intrahold AG and other business partners - political Transferring the money via a loan More through its controlling com- Monohold AG from 2010. In 2014, Who’s in the party? consultant Rick Davis and lobbyist would allow the transactions to occur pany, a UK-based offshore called both came under investigation by By the early 2000s, Manafort had Rick Gates. without being taxed. Shares in the Colberg Projects LLP. already made a name for himself in A large portion of Manafort’s polit- SPV would then be transferred to a In April 2008, $18.9 million Ukrainian political circles by work- ical team in Ukraine appears to have Manafort-controlled firm called EVO was transferred to PEM Advisors. more Manafort on page 9 ing for Donbas billionaire Rinat been involved in the dealings. Akhmetov, Ukraine’s richest oligarch. Legal documents name longtime Advertisement Yanukovych hired Manafort in International Republican Institute the aftermath of the 2004 Orange official Konstantin Kilimnik as Pharma community leads drive to create Ukraine’s ‘Orange Book’ Revolution. The former prime min- involved “in furthering the partner- ister’s political career was on the ship’s investment program,” along Since Ukraine gained independence, That situation gives us insight into the involve the participation of the pharma- the country’s pharmaceutical industry wide range of evaluation methods used ceutical industry and leading figures in ropes following Viktor Yushchenko’s with Ukraine political consultant has seen significant changes in drugs over this period. Ukraine faced setting the Ukrainian medical and pharmaceuti- election as president. Philip Griffin, and Party of Regions manufacturing regulations, as well as up a pharmacovigilance system in line cal sciences. Manafort set to work rebranding flack Alexander Balanutsa. rules on efficacy and safety evaluations. with World Health Organization (WHO) The information pool for the guide the Yanukovych-led Party of Regions After roughly a year of searching In the early nineties, these standards standards, under which the reporting of was generated from evidence provided for the 2006 parliamentary elections. for potential purchases and nego- were duplications of old Soviet require- side effects was reasonable grounds to by pharmaceutical companies, with The makeover aimed at transform- tiations - during which $7.35 mil- ments, but starting from 2002 the first withdraw a medication from the market. each international non-property prod- step in harmonizing them with EU regu- Compared to the history of the de- uct name, along with possible combi- ing the bumbling autocrat into an lion in management fees were paid lations was taken, through the adoption velopment of the regulatory systems nations, to be listed along with trade articulate democrat. Yanukovych was to Pericles’s managers - the team of Good Manufacturing Practice (GMP) in other countries, it can be stated that names and manufacturers, in compli- trained to speak in catchy soundbites. settled on one purchase: Chorne principles at the national level. Ukraine was not an exception to world- ance with the Pharmaceutical Products But at the same time, Manafort More, an Odesa holding company Ukraine’s Health Ministry put into effect wide practice. For example, the United State Register of Ukraine as of the date was parlaying his political career in for a number of cable and internet another set of legislative harmonization States saw a similar scenario when of the publishing of the guide. measures in 2005, which brought drugs bringing in new standards of medicinal For some Ukrainian companies, in Ukraine into business links. providers. registration and importing requirements products development, manufacturing particular Farmak JSC, the ‘Drugs refer- He attempted to buy a series Chorne More had been founded into line with EU standards, but putting and evaluation to the industry, for pro- ence book of equivalence Rx index®’ of New York City properties on in the early 2000s by a man named these measures into routine practice took fessionals and the public. provides an additional opportunity to behalf of the now-exiled gas mogul Serhiy Dehtyar, who, according to time. Health Ministry order No. 190 of In the United States, it is mainly the bring into focus the importance of the ef- Dmytro Firtash, who faces corrup- media reports from the time and to 17.04.2007 set out the requirements for Orange Book (Food and Drug Administra- ficacy and safety of generic products for bioequivalent studies, thereby setting new tion, FDA — Approved Drug Products with reasonable pricing.This standard is set tion charges in a U.S. federal court, people who worked with him, died in standards for Ukrainian manufacturers, Therapeutic Equivalence Evaluations) in the company’s vision, and was mir- according to a now-dismissed 2011 2004 after sustaining head injuries and upgrading the overall standards of that regulates the generic drugs prescrip- rored in the bioequivalent studies per- lawsuit filed against Firtash over under mysterious circumstances. quality of medication on the Ukrainian tion tendencies. The document is updated formed at the company’s own initiative racketeering allegations. Under Dehtyar and his succes- market to a new level. As a consequence, monthly, and every year the FDA releases on a range of over-the-counter medica- Manafort’s ties to Firtash were sor, Dmitry Cherep, the company the decisive actions of the regulatory body an updated edition of the book. Today, the tions, as well as prescription drugs. The established at the same time he had expanded to control 45 per- within a short period brought significant Orange Book is the best example in world successful completion of these studies changes to fundamental processes in the practice of a medication database that is shows the effect of this vision’s imple- founded the private equity fund, cent of Odessa’s telecommunications national pharmaceutical industry, mainly approved by a regulatory body. mentation. For more than 10 years, start- which was called Pericles Emerging infrastructure. for generic drugs manufacturers. However, there is still no such basic, ing from 2005, Farmak JSC has provided Market Partners. The company’s management Over this period of change, me- trustworthy instrument as the Orange the results of 15 bioequivalent studies to It was registered in the Cayman at the time was closely associated dicinal products were present on the Book on Ukraine’s national pharmaceuti- the public and to healthcare profession- Islands in March 2007, with the with Yanukovych’s Party of Regions. pharmaceutical market of Ukraine that cal market that provides extensive infor- als. Another set of bioequivalent studies were developed, manufactured and mation about generic drugs efficacy and is currently in progress. This fact under- stated intention of acquiring small- Cherep’s brother Oleksandr - who evaluated in compliance with various safety. To remedy this, it was announced lines that national pharmaceutical in- er companies to consolidate them also helped to run the company - regulatory requirements, ranging from in July 2016 that Ukraine would publish a dustry has the potential to combine high into larger “national” companies, and was a Party of Regions member of post-Soviet standards to international ‘Drugs reference book of equivalence Rx quality manufacturing standards with then selling the larger companies Odesa City Council until 2014. GxP requirements. index®’. The project’s development will reasonable pricing for final customers. directly or through a public offering. Investment structure Farmak JSC in numbers An Odesa tale gone awry? According to the Cayman Islands In order to buy Chorne More, Farmak had a 6% share of the national 2,600 highly skilled professionals work # PGY UVCVGQHVJGCTV 4& EQORNGZ motion to dissolve the company, Manafort and his partners allegedly pharmaceutical market in 2015* for Farmak JSC, including at represen- launched in 2014 VCVKXG QHƒEGU KP 7\DGMKUVCP $GNCTWU the fund started out with a poten- presented a plan to the investors by The share of products sold by Farmak ** JSC on the domestic market is 21.4%. -C\CMJUVCP-[TI[\UVCPCPF4WUUKC * tial investment of $200 million. which the buyout was to proceed. ţCEEQTFKPIVQVJGũ2TQZKOC4GUGCTEJŪ The company exports 21.1% of the 18 of the company’s manufacturing analytical agency Deripaska reportedly committed as The legal documents allege that lines have successfully passed national products it manufactures to 20 coun- ** — internal Farmak JSC data ** )/2CWFKVUCPFQHVJGOCNUQJCXG'7 a main investor through an offshore the investors would transfer money tries around the globe ** called Altimax Investments Limited, to a Cypriot company called PEM )/2EGTVKƒECVGU later succeeded by LP Surf, which Advisors Limited, which would then launched the Cayman Islands legal loan the investment money to a 4 Opinion July 8, 2016 www.kyivpost.com

NEWS ITEM: The Verkhovna Rada passed a law that decreases Editorials customs fees for the imported used cars, aiming to make cars You are so more affordable in generous, dear Blockheads Ukraine. But President Petro Poroshenko president The country is under attack, at war. Urgent reforms are needed. Vital changed the law, legislation needs to be passed, and quickly. severely limiting its But groups of Ukrainian lawmakers are lining up to block the work of use. parliament one after another. On July 7, a group of lawmakers, veterans of the war in the east, blocked the tribune, the area of the parliament from which the business of the Rada is run, in order prevent Radical Party and Batkivshyna Party lawmakers from blocking it. Their plans foiled, Radical Party lawmakers staged a sit-down protest on the floor in front of the tribune. The actions of Ukrainian lawmakers of all political stripes is frequently absurd, pathetic and downright irresponsible given the many serious problems the country currently faces. Of course, bad behavior by legislators is not something unique to this country, or this time. Cato the Younger, in the 1st century B.C. would obstruct the work of the ancient Roman Senate with long-winded speech- es that lasted until dusk – the time under which Senate rules business for the day was to end. This century, in 2013, U.S. Senator Ted Cruz spoke for Like I was 21 hours in an effort to block funding for the U.S. Affordable Care Act. At one point, he resorted to reading his fellow senators the Dr. Seuss chil- going to let you dren’s classic “Green Eggs and Ham,” just to waste more time. arrest me However, it is here in Ukraine, and now, that lawmakers have taken vandalism of the legislative process to new lows. Only this year, former Prime Minister Arseniy Yatsenyuk was crotch-hoisted from the rostrum while delivering a speech to parliament by a pro-presidential lawmaker. NEWS ITEM: On July 5, the parliament Ukraine’s parliament is ridiculed around the world for the brawls that allowed the arrest of a lawmaker frequently break out on its floor. Oleksandr Onyshchenko, And even Ukraine’s newest lawmaker, Nadiya Savchenko, just weeks who is suspected of embezzling Hr 3 billion. after being released from captivity in Russia, on July 5 took part in a Onyshchenko, who is Batkivshyna Party and Radical Party blocking of the Rada tribune on July 5. professionally involved The sight of Savchenko sitting smugly in the speaker’s chair during that in the equestrian sport, action was a depressing one for those who hoped to see a higher level left the contry two days of conduct, dignity and maturity from lawmakers who have entered the before the vote in the Rada since the EuroMaidan Revolution. parliament. Ukraine’s parliament still reflects the old Ukraine of clannish interests, thuggishness, disregard for rules, populism, and a lack of respect for the dignity of the legislature, and by extension the state. Ukrainian civil soci- ety, as ever, is far ahead of its politicians. If the politicians won’t change, then it’s up to the Ukrainian public to change the politicians. The next Rada elections can’t come soon enough. Brave voices

In an overwhelmingly popular hashtag campaign that started on Facebook I’m on June 5, Ukrainians, mostly women, have been sharing their personal stories about suffering sexual harassment or assault. Is losing trust Ukrainian women shared stories about being groped on public transport or this even a in government at parties, pressed against the walls of elevators, followed along dark streets, road? statements molested and raped. Together, the hundreds of stories are an unprecedented chronicle of sexual harassment and violence, told by survivors. But the campaign, called “I’m not afraid to say it,” revealed even more than it aimed to, because some of the reactions were almost as alarming as the stories themselves. While many praised the women’s bravery and said they were shocked NEWS ITEM: Deputy Prime that sexual assaults are so common, others criticized or even mocked Minister Vladimir Kistion the victims. boasted on July 4 that the They wrote that the sexual harassment and assaults were caused by Ukrainian roads were repaired, and 95 percent of the the way the victims dress, look and behave. Dress modestly, don’t walk potholes were gone. alone at night, don’t flirt and you will be fine, was the message. This flies in the face of the fact that the assaults are often committed in the middle of the day, in public places, and sometimes to young children who don’t even know what sex is. Some blamed the women for manipulation: “She says ‘no,’ you stop, and then she resents you for having stopped.” Some even hinted that women secretly enjoy rape. Others said that such stories don’t belong on Facebook. It paints an alarming picture of how Ukrainian society sees sexual I’m doing assault. Fortunately, we have an example to follow. The West has been it the hard fighting similar attitudes for many years, and has seen some success: way Victim-shaming has become much less acceptable. Why don’t you just Ukraine needs to go the same way, and an open public discussion is a buy a seat in the Rada great first step. like we all do? NEWS ITEM: Ex-lawmaker Yegor Firsov, who was expeled from parliament by his faction, President Petro Poroshenko’s Bloc, for criticism against Mohammad Zahoor, Publisher its members, runs for the Verkhovna Alyona Nevmerzhytska, Acting Chief Executive Offi cer Rada again - as Brian Bonner, Chief Editor an independent Editors: Euan MacDonald, Allison Quinn, Olga Rudenko candidate in the Staff Writers: Olena Goncharova, Oksana Grytsenko, Isobel Koshiw, Josh Kovensky, by-election in Denys Krasnikov, Vlad Lavrov, Veronika Melkozerova, Yuliana Romanyshyn, Olena Savchuk, Bike for Daryna Shevchenko, Oleg Sukhov, Ilya Timtchenko, Oksana Torhan, Nataliya Trach, sale Chernihiv. He has Anna Yakutenko, Alyona Zhuk announced that he Photo Editor: Pavlo Podufalov. is putting his bike Photographers: Kostyantyn Chernichkin, Volodymyr Petrov, Anastasia Vlasova on an auction to raise Chief Designer: Vladyslav Zakharenko money for the campaign. Directors of Digital Strategy & Monetization: Roman Kolgushev, Olga Dorovskykh Social Media Manager: Iryna Savchuk

Sales Managers: Yulia Kovalenko, Yulia Krus, Transport Manager: Mykola Andrusha Elena Symonenko Chief Accountant: Galyna Rogachova Subscription Manager: Svitlana Kolesnikova Accountant: Vita Shvets Feel strongly about an issue? Agree or disagree with editorial positions in this newspaper? Designer: Yurii Ternytskyi IT Manager: Oleksiy Bondarchuk The Kyiv Post welcomes letters to the editors and opinion pieces, usually 800 to 1,000 words in length. Please email all corre- To inquire about distribution of the Kyiv Post, please contact Svitlana Kolesnikova spondence to Brian Bonner chief editor, at [email protected]. All correspondence must include an email address and at [email protected] or by phone at 591-3344 contact phone number for verifi cation. www.kyivpost.com July 8, 2016 Opinionp 5 Reformer of the week Anti-reformer of the week VOX Rouslan Riaboshapka Roman Hovda populili Rouslan Riaboshapka, the only represen- Prosecutor General Yuriy Lutsenko on July

tative of civil society at the newly-created 6 appointed controversial official Roman WITH NATALIE VIKHROV National Agency for Preventing Corruption, Hovda as the chief prosecutor of Kyiv. has consistently revealed and opposed efforts Lutsenko’s opponents say he has tried Do you think sexual to sabotage the agency’s launch. to deceive the public, belying his promises The agency will check officials’ asset and to fight the prosecutorial mafia. He first harassment is a income declarations and determine whether asked Hovda to step down as a deputy serious problem in they will be punished for lying or not includ- prosecutor general as a concession to civil ing certain assets. society but then offset this by giving him today’s Ukraine? Riaboshapka said last week that the major- a cushy job. Yulia ity of the agency’s leadership, which is loyal The appointment of Hovda, a member Sholomova, to President Petro Poroshenko, was trying to of ex-Prosecutor General Viktor Shokin’s call center delay its launch by stopping all work until interviews with applicants for team and a key representative of the old prosecutorial system, is a sign operator agency jobs are completed on July 11. He also said the agency was choosing that no reform will take place. He has been accused of supervising This is a real the worst candidates with the lowest scores. political cases on behalf of President Petro Poroshenko’s allies Ihor problem. A In late June Riaboshapka, a former member of Transparency International, Kononenko and Oleksandr Hranovsky, cracking down on businesses and couple of wrote that Natalya Korchak, the agency’s head, had held a meeting of a derailing corruption investigations. Hovda denies the accusations. He weeks ago commission for choosing the agency’s personnel in a “secret” mode without has also been lambasted for supervising the Interior Ministry’s activities I was in the any observers or video and audio recording. during crackdowns on EuroMaidan protestors in 2013-2014. park with my Ukrainian authorities have been dragging their feet on the agency’s Lutsenko has also failed to fire Oleh Valendyuk, ex-prosecutor of child …I turn around and behind launch since March 2015, when it was formally set up, and have also tried Kyiv and now Hodva’s deputy, under the lustration law, which stipulates me there is a man with his pants to create legal loopholes for corrupt officials’ declarations. Critics see this the dismissal of officials who served ex-President Viktor Yanukovych. down. I berated him but he didn’t as an effort to help officials escape punishment. Hranovsky has admitted that he’s acquianted with Valendyuk. react and even walked behind – Oleg Sukhov – Oleg Sukhov us for some time. I didn’t think of it at the time, but I think people To nominate someone as reformer or anti-reformer of the week, write to [email protected] need to call the police when it happens.

Volodymyr Kutsenko, warehouse Americans take freedoms, supervisor You see it on the news and it looks like this problem gun violence for granted is growing. I don’t know why. Some people might not have developed like other chil- dren and they might have been traumatized. Maybe we need to ban films of this nature. Maybe dressing more modestly is the OLENA way to go. GONCHAROVA

Lyuda PITTSBURGH, Pennsylvania – I have been Nedelkina, waiting for two things (among many more) to student check out while I’m on a fellowship in the United It’s a problem States: PrideFestival celebrations and July 4th we need to fireworks. solve some- Neither of them turned out to be as I expected, how. I get scared walk- but it taught me a lot about American life. ing by myself My editors in the newsroom of Pittsburgh Post- at night. I Gazette, where I’m working this summer, were always put keys in between my not eager to send me on assignment to cover fingers so that I could poke (a Pittsburgh Pride. They told me that usually it’s potential attacker) under the ribs “just a parade: and a concert that follows,” but but so far there hasn’t been an I’ve been convincing them that it’s important for incident where I needed to do me to see how LGBTQ community celebrates the that. festival in the U.S., because things are different in Ukraine. When it comes to freedom of speech and other Oleksandr Pittsburghers celebrate PrideFest and commemorate victims of the Orlando shooting on June 12. Seryi, constitutional rights, Americans often take them (Olena Goncharova) for granted. actor While in the summer of 2015 the American I think it’s a huge problem LGBTQ community celebrated the U.S. Supreme now. I’ve seen Court’s decision to legally recognize same-sex only many more participants showed up in the on the scene. One of the wounded was 15-year a lot of peo- marriage, thousands of miles away a group of downtown Pittsburgh than the organizers expect- old girl. ple of other violent homophobes attacked a peaceful march of ed, but they were unanimous in their idea to keep I realized that I have spent more than three nationalities, 200 gay activists in Kyiv. fighting for their rights and not to hide who they months in the U.S. and Pittsburgh has become who like to In Ukraine, homophobia is real and raw, and are. a second home to me as it is a perfect blend of whistle at and stop girls and it’s every pride parade we have is a test of Ukrainian Less than a month after, Pittsburgh was getting big city and small town, where I greet all the bus such light flirting but you don’t tolerance and police protection. ready to celebrate America’s 240th Independence drivers and discuss hockey news with the vendors. know what it could end with. This year was the first time my home city of Kyiv Day with a number of events scheduled. Working on my stories in American newsroom passed this test — thanks to 6,000 police officers However, the weather in Steel City is unpredict- during all this time, I’m hardly used to the thought deployed to secure over 2,000-some participants able and so is the mood of its citizens. It started how often I see the word “gun” in the news. Stanislav who turned out for the Equality March. None raining from the early morning (Pittsburghers get Unfortunately, no other developed country in the Topaz, of the previous Kyiv pride parades was without to enjoy a little bit more than 60 sunny days over world has anywhere near the same rate of gun photographer violence. the year) which led to cancelling United States Air violence as America. I think it I was wondering how it would look like in Force flyover. But despite a never-ending gun debate, I will depends on the girls. Girls Pittsburgh, known for its vibrant and diverse I was a bit disappointed, but people around remember my time in the U.S. as a place where I dress in such LGBTQ community. were enjoying their time sitting close to each finally mastered the art of small talk (Ukrainians a manner I never saw a joyous celebration of the Pride other under umbrellas and sharing raincoats and are rarely comfortable about that), variety of dif- that men festival in Pittsburgh. The event that was set to burgers. Some were dancing in the rain. I was truly ferent cuisines and freedom of being who you are harass them, punctuate a 10-day festivities, was marred by the fascinated by the atmosphere. even though it takes its toll. that’s what I think. Yes, there are news of a massacre at a crowded gay nightclub in Maybe it wasn’t an ideal July 4th I had in my Kyiv Post staff writer Olena Goncharova is work- morons but… I think the prob- Florida on June 12. The attack on the Pulse night- imagination, but the fireworks, however, took ing at the Pittsburgh Post-Gazette until September on lem lies with the girls in the first club in Orlando left 49 people killed and around place as planned. What a day, I thought while on a six-month Alfred Friendly Press Partners fellow- place. 53 wounded was immediately dubbed as the worst my way home. As I checked the news later, shortly ship. She is the third Ukrainian journalist from the mass shooting in U.S. history. after the spectacular show, four people were shot Kyiv Post to participate in the program in as many Despite the somber tone of celebrations, not in the downtown - despite major police presence years.  6 Business July 8, 2016 www.kyivpost.com

Editor’s Note: World in Ukraine takes a look at Ukraine’s bilateral relations with different nations. To sponsor this news feature, please contact the Kyiv World in Ukraine Post’s sales team at [email protected] or call 591-7788. In partnership with Delta Pyatt: High hopes, some regrets, one big question

BY BRIAN BONNER successor in Kyiv. [email protected] “I come from a school or gener- ation of diplomats who views that Of all the compliments that U.S. sen- as a compliment,” Pyatt said of ators lavished on U.S. Ambassador being called undiplomatic at times. Geoffrey R. Pyatt during the June 22 “America is at its best when we speak confirmation hearing on his pend- frankly and when we stand by our ing reassignment to Greece, one of values.” his favorite came from U.S. Senator Pyatt, whose nomination to Greece Robert Menendez. awaits likely U.S. Senate confirma- Besides doing “an extraordinary tion by September, spoke with the job” in Ukraine, “you were hon- Kyiv Post for a traditional Fourth est and forthright in all of your of July interview on the eve of his answers, and you didn’t use the dip- annual Independence Day backyard lomatic speak that sometimes I hear,” reception and barbeque on July 1. Menendez, a Democrat representing Pyatt is part a big turnover that New Jersey, told Pyatt at the Senate is coming in the Western diplo- Foreign Relations Committee hear- matic corps, as ambassadors who ing in Washington, D.C. Also ques- served during the EuroMaidan tioned was Marie L. Yovanovitch, Revolution and the start of Russia’s who is tapped by U.S. President war against Ukraine are being reas- Barack Obama to become Pyatt’s signed -- including Jan Tombinski of

U.S. Ambassador to Ukraine Geoffrey R. Pyatt sits down with the Kyiv Post on June 30 for the third annual interview timed for American Independence Day celebrations. Pyatt is awaiting U.S. Senate confirmation to become U.S. ambassador to Greece while Marie L. Yovanovitch is tapped to succeed him. (Anastasia Vlasova)

the European Union, Andreas von out publicly (and Poroshenko, by year “by the corrupt cabal around Beckerath of Sweden, Jon Elvedal implication) on Sept. 24 in Odesa. Shokin,” Pyatt said. “There are no Fredriksen of Norway and Christof It took, however, another six illusions about what’s happened Weil of Germany, among others. months to persuade Poroshenko to there, because we saw it from the The incoming new ambassadors fire his loyalist Shokin and replace inside.” will coordinate the Western response him with another loyalist, Yuriy By contrast, with Lutsenko, “we to Russia’s war against Ukraine, in its Lutsenko, the former interior min- have excellent cooperation” and third year, as well as try to make ister and Yanukovych-era political also the same with the National inroads against the stubborn per- prisoner who headed Poroshenko’s Anti-Corruption Bureau of Ukraine, sistence of high-level corruption in faction in parliament. Lutsenko took where a U.S. FBI agent was embed- Ukraine. over on May 12. ded to share expertise. Pyatt has no regrets about the Removing Shokin tough stance on Shokin. ‘Ukraine needs a lot’ It was in support of Ukrainians’ fight “It wasn’t me taking on Shokin. It Rebuilding trust in Ukraine’s dis- against their corrupt authorities that was the United States government,” credited government institutions and Pyatt took one of his stronger and Pyatt said. “The conditionality of get- delivering justice and rule of law more memorable stands. ting rid of Shokin was an important remain long-term projects, Pyatt said. The U.S. viewed Viktor Shokin, step to at least opening the door to “I think Ukraine needs a lot of President Petro Poroshenko’s choice reform the prosecutor’s office.” things. It needs a functional judicia- for general prosecutor in February For the U.S., Shokin was only ry. It needs an effective prosecuto- 2015, as a prime obstacle to the war the latest in a string of obstruc- rial service. It needs trusted police. on corruption and creation of rule tionist prosecutors since the revo- It needs institutions that enjoy the of law. lution -- including Oleh Makhnitsky confidence of the Ukrainian people.” Getting rid of Shokin became one and Vitaly Yarema -- who were so He supports the idea of deeper U.S. of the few conditions known publicly uninterested in justice that U.S. law involvement in righting Ukraine’s for the U.S. government to continue enforcement agents assigned to help criminal justice system as well as assisting Ukraine financially. That “were basically locked out of the the creation of a special anti-cor- assistance package now includes $3 prosecutor’s office,” Pyatt said. “An ruption court to take on cases that billion in loan guarantees, security inner corps in the prosecutor’s office the regular judiciary, made up of aid of $600 million and economic was a) not interested in pursuing 9,000 discredited judges, cannot be aid of $500 million since the revo- justice and b) not going to do any- entrusted to adjudicate. He views lution that ousted Viktor Yanukovych thing that was going to compro- such a special court as an interim on Feb. 22, 2014, days after the mur- mise relationships with key political step until judicial reforms take hold ders of 100 demonstrators. personalities.” and new, clean, professional judges Shokin’s malfeasance in leading The U.S. actively assisted attempts are appointed to the bench. the nation’s 18,000 prosecutors, his by ex-prosecutors Davit Sakvarelidze Pyatt also thinks the U.S. can play refusal to prosecute any high-level and Vitaly Kasko “to cleanse the crimes and his obstruction of inves- system and build a new team,” but tigations prompted Pyatt to call him both were driven out earlier this more Pyatt on page 10 www.kyivpost.com July 8, 2016 Business 7 Hunder assesses business climate in Ukraine after 15 months as president of AmCham

BY BRIAN BONNER tionally been there...and in It, we have “Corruption still remains the No. associations and many smaller place is in the past.” [email protected] 90,000 programmers working today 1 barrier.. We do regular surveys ones – the U.S.-Ukraine Business KP: You’re a British citizen and we just can’t get enough of them.” on corruption and the perception is Council, AmCham, European working in Ukraine. What effect The Kyiv Post sat down with Andy KP: What about the other side that it’s not changing...We want to Business Association and British- will Brexit, the United Kingdom’s Hunder, the British citizen of of the coin? see substantial results...Until we see Ukraine Chamber of Commerce. exit from the European Union, Ukrainian parents who has been AH: “I see the good bad and ugly some of these big fish going down Do you work together? have on Ukraine? president of the 630-member every day. We have members and and being brought to accountabality AH: “We have to work together...I AH: “It’s going to be very difficult American Chamber of Commerce in they have problems. for everything that’s been stolen and inherited some historical baggage in to forecast...We are living in historic Ukraine since April 2015. “The government has stopped all the way the country has been raped terms of the way these associations times in Europe but also historic times His active tenure thus far – with VAT (value-added tax) refunds as for the last number ofyears, bringing weren’t working together. Yesterday in Ukraine. Next year, the American scads of public events and meet- of Friday. This is probably the first people to accountablity, the three we had a joint press conference with Chamber of Commerce will celebrate ings with top businesses and public time...It is really unclear why all barriers remain: Corruption, rule of other business associatons on waste 25 years in Ukraine, launched in 1992, officials – has made many peo- of a sudden they stopped all VAT law, bureaucracy.” management...United we stand. Any ple forget about the nine-month refunds... KP: We have four big business petty competition that has taken more AmCham on page 8 run of American Bernard Casey, his fired predecessor who opposed the EuroMaidan Revolution that oust- ed President Viktor Yanukovych in 2014, considered Crimea as part of Russia and regarded Russia’s war against Ukraine as a civil conflict. The interview came on July 6, ahead of the chamber’s traditional American Independence Day cele- bration on July 9. The Saturday event, called Picnic of United Dreams, will take place for the first time at Art- Zavod Platforma, 1 Bilomorska St., n Kyiv. The Kyiv Post is the exclusive media partner for the event. The following is an abridged tran- script of the conversation? Kyiv Post: Will there be enough to eat and drink at this year’s cel- ebration on July 9? Andy Hunder: “Absolutely. Following the feedback we received, the two issues we focused on are security and getting more great food. That’s why we’ve changed the venue. It’s place known for its good food. We’ll have great performances – five bands, a great emcee, no long lines – we have tripled the food outlets.” KP: What are the biggest sourc- es of optimism since you took this job ? AH: “We’ve hit rock bottom and are seeing initial signs of growth. “In terms of the people, we see good people coming into ministries, people who are genuine, who are coming in for the right reasons. If in the past there were ministers who came in to steal as much as they could and if you were a minister and didn’t become a millionaire in a year, you were considered a failure. “The first things we’re seing with Prime Minister Volodymyr Groysman in his first 60 days have been posi- tive. Expectations were quite low when he came in. He has definite- ly exceeded the expectations. We are seeing that things are changing. Government is understanding that the most important thing is foreign direct investment. “Last month we had the opening of Bunge, total investment $280 mil- lion in Mykolayiv...Cargill is investing in their deep water sea terminal in odesa in Yuzhniy Port. I travel a lot around the country. Oon Friday, I was invited to an opening by Amway in Lviv. I couln’t make it. I was invited to the opening of Unilever in REPRESENTATIVE OFFICE OF DELTA AIR LINES IN UKRAINE Hostomel, 30 kilometers northwest of Kyv. Thursday, I was invited to the TEL. 380 44 287 35 95 launch of Uber...Leoni is opening a www.delta.com second plant in Kolomia and has one in Lviv - kicking off with 800 new jobs potentially going up to 8,000... We’re in this period where some- thing is happening every day. “The agriculture sector has tradi- 8 Business July 8, 2016 www.kyivpost.com Despite recent new investments, Hunder says ‘corruption remains No. 1 barrier’

AmCham from page 7 but you can’t take it out. Andy Hunder, president of the American Chamber 3. Privatization: All eyes are on of Commerce in Ukraine on July 4, 2015, in Kyiv at and how Ukraine has been changing. the business association’s annual Independence July 26 (with the privatization of the) Now...there is this mood that civil Day picnic in Kyiv. This year’s event takes place Odesa Portside Plant. society is becoming much stronger, on July 9. See page 24 advertisement for more 4. Legislation simplifying taxes independent media is having more of details. (Kostyantyn Chernichkin) remains a big issue across the board. a voice. So I’m optimistic...” 5. Getting legislation to ban trad- KP: Were you in the Brexit or ing of illegally imported and counter- Remain camp? feited goods we see so much. AH: I was for Remain. KP: Is Groysman his own man? KP: Is the AmCham presidency AH: Time will tell. a good fit for you? KP: Are the oligarchs tamed or AH: “This is me. I am a firm believ- back in charge of the country? er in life that it’s very, very important AH: “They still control the hearts to do what you love. Ukraine has and minds through the media. That been a passion, something I have is probably their biggest influence.. focued on for most of my life. (there is talk of) imposing a tax on “The strategy is crystalized: 1. the oligarchs, the ones who have business to government - being the stolen from the country in the last voice of business to government decade or two, giving back; having 2. business to business – allowing some sort of investigations there...It’s our members to promote themselves not only focusing on the four or five among the membership and further but also on the wider (view), because afield... We’ve re-established a great in almost every oblast, there is some relationship with the U.S. Embassy official raking millions, stealing....If and other embassies and with the we see people are stealing from the U.S. chamber in Washington, D.C. country, it’s really being able to iden- We have 42 U.S. chambers across tify that and stand up against it... Europe; (and) 3. Business to Ukraine become yet another one? havn’t gone down very well. We are minister, we gave five clear points “Other chambers have a media – promoting Ukraine as an attractive AH: “What we’re seeing is the hoping Poroshenko will. Two years that we want to see happen this year: committee. We don’t. Why? Media investment destination...We are one mountain to climb has been massive down, if we look at the scorecard, they 1. continuation of the IMF is not considered to be a business in of the first points to call for investors and two years out, he’s looking up could have done better, but there’s program. the real sense of the word here. to get an unbiased view of what is and saying there’s still so far to go. still so much to do...there’s more that 2. Allowing the repatriation of KP: Anything else? happening in the country...We give We’re at a quite decisive moment. could have been done, especially in dividends by foreign investors and AH: “Ukraine does have an image them the reality.” “Poroshenko came in with a real the fight against corruption.” relaxing currency controls. We’ve problem...What is needed is a real KP: Ukraine has had a history opportunity as someone to go down KP: What’s at the top of the seen some things happening on that, strategy in how we promote the coun- of authoritarian presidents. Are in history as somebody who changed business community’s agenda? not all the way. What we’re saying try to potential investors because you worried that Poroshenko will the country...His four predecessors AH: “When we met with the prime to investors is bring your investment, there is a lot of good news.”  www.kyivpost.com July 8, 2016 Business 9 US gives $1 million in grants to Ukrainian students to study in best American, UK universities

BY YULIANA ROMANYSHYN [email protected]

The U.S. government is spending $1 million so Ukrainian students can study in the best universities in the United States and Britain. The grants will be issued through the Western NIS Enterprise Fund, an investment fund established by the U.S. government via the U.S. Agency for International Development. The grants in 2016 will fully cover the tuition fees of 13 students study- ing in master’s degree programs. Funding is expected to be raised to $5 million by 2018, to cover the tuition fees of 40 students. Specifically, the scholarships, known as Seed Grants, will cover Ex-Minister of Infrastructure Andriy Pivovarsky speaks at a Seed Grant tuition fees for master’s programs award ceremony held by the Western NIS Enterprise Fund on June 30 in in business administration, public Fedoriv Hub in Kyiv. The grants are to cover tuition fees for 13 students, admitted to the best universities in the United States and Great Britain. administration, public policy and (Western NIS Enterprise Fund) law studies. The 13 students who Republican presedential candidate Donald Trump speaks during an won the grants will attend the best applicant has to provide additional ranging from investment banking event at the annual Rolling Thunder “Ride for Freedom” parade ahead of universities in their field -- MIT financing to pay for daily expens- and the oil and gas sector to educa- Memorial Day in Washington, DC, on May 29, (AFP) Sloan School of Management, Yale es, which may sometimes exceed tion and communications,” Johnson School of Management, Duke Fuqua $50,000 over two years. said. School of Business, University of “This year we’ve seen a positive In 2015, the Seed Grant cov- Michigan Ross School of Business, trend of an increase in the num- ered the expenses of five students. Did Manafort, Trump’s University of Chicago Booth School ber of applicants keen to enter the The Western NIS Enterprise Fund of Business, and others. leading American schools to gain expects every alumnus to return to The tuition for a two-year pro- the necessary skills and implement Ukraine after two years of studies campaign manager, gram at Yale School of Management, their ideas in Ukraine,” Jaroslawa and apply their skills for at least for example, is up to $130,000. Johnson, the president and CEO of three years in the country. siphon off $26 million To apply for a Seed Grant, stu- the Western NIS Enterprise Fund, If they fail to stick to these condi- dents have to present a letter of said in a recent statement. tions, the recipient will be required admission from one of the uni- “It is important that scholarship to fully repay the grant in six months, through an Odesa versities. Besides tuition fees, the recipients come from various fields, including interest.  telecom scheme?

Manafort from page 3 taking over Chorne More likely fit into a larger plan by the Party of THE NEW VOLVO S90 the Seychelles Financial Intelligence Regions to assert media control over Unit on suspicion of being used for the Black Sea city. money laundering by Yanukovych. “Here on the southern coast, the Colberg was formed in 2006 by two Party of Regions was very strong at BVI-registered firms called Ireland & that time,” Vasina said. “In Odesa Overseas Acquisitions and Milltown every self-respecting businessman, Corporate Services, both of which politician, deputy, public figure tries have been linked to Yanukovych-era to launch his own TV station. If you corruption scandals. don’t have a station, you’re nobody.” But Cherep denied that any polit- Everything is political ical influence was wielded over the People who worked at the firm, as company. well as others involved in Odesa’s Legal moves to dissolve Pericles telecommunications market, remem- did not begin until 2014, years after ber Chorne More briefly having the original investment was made. American owners. Though the plaintiffs are seeking According to Dmitry Cherep, the to recover the lost assets through former Chorne More general direc- dissolving the company, they do tor, the new American owners sent not appear to have filed any civil him around Ukraine in an attempt suit seeking to directly retrieve the to find more potential investment money. opportunities. Manafort left Ukraine during the “Around five companies were pre- 2013-2014 EuroMaidan Revolution pared for negotiations,” Cherep said, that toppled his ex-client Yanukovych adding that the investment fund from the presidency, according to replaced Chorne More’s accountant. a source familiar with the lobbyist’s Cherep said that he left the compa- affairs. In March, presumptive U.S. ny after two years upon realizing that Republican presidential nominee the new management did not intend Donald Trump hired Manafort to to embark on further development. run his presidential campaign. Dmitry Cherep himself was arrest- The U.S. court filings were part of ed in 2014 for an attempt to found a process by which Cayman Islands an “Odesa People’s Republic,” mod- court-appointed liquidators tried to eled after the Donetsk and Luhansk depose Manafort as part of their separatist organizations, Odesa news investigation into where the compa- website Dumskaya reported. Cherep ny’s money went. Hibey, the Manafort was reportedly found with grenades lawyer, told Yahoo News in late April in his car, and later provided testi- that Manafort had “appeared for mony to Ukrainian law enforcement depositions some months ago, and that resulted in the arrest of dozens answered all questions.” allegedly involved in the plot. “We are not privy to any other WWW.VOLVOCARS.COM.UA

According to Olena Vasina, an developments,” Hibey reportedly Winner Imports Ukraine Ltd, Identification code 20054535 Odesa-based investigative journalist, added.  10 Business July 8, 2016 www.kyivpost.com Pyatt: ‘Tragedy for all Ukrainians’ that crimes don’t get punished

Pyatt from page 6 an active role in helping Ukraine recover the billions of dollars in assets that have been illicitly spirit- ed offshore. With support from the United Kingdom, America is hosting an asset recovery conference next year designed specifically to help four corruption-plagued nations: Ukraine, Sri Lanka, Nigeria and Tunisia. But to do that, credible investiga- tions and evidence will have to come from Ukraine’s broken criminal jus- tice system. “The more successful Ukraine is in building new and effec- tive institutions, the more effective we can be in supporting and helping Ukrainian courts find assets,” Pyatt said. ‘Tragedy for all’ Only results matter. “There is only one yardstick of success in this area and that’s bring- ing people to trial and getting them convicted,” Pyatt said. “It’s a tragedy for all Ukrainians that two-and-a- half years after the revolution, not one Yanukovych-era crook has been convicted and nobody has been brought to account for the murders on Maidan. That needs to change, and Lutsenko knows that needs to change.” Ukrainian politicians “don’t have to worry about me” or other for- eigners, Pyatt said. “They have to U.S. Ambassador to Ukraine Geoffrey R. Pyatt watches as Vitalina Musienko sings the Ukrainian national anthem during the July 1 Independence worry about the expectations of the Day reception in Kyiv ahead of Fourth of July celebrations for America’s 240th birthday. (U.S. Embassy in Ukraine) Ukrainian people for rule of law.”

Assessing U.S. policy should be doing more to support the far from universal, growing criticism on the U.S. to maintain existing or ber that sanctions were imposed on Despite the solid U.S-Ukraine alli- 1994 Budapest Memorandum, when that the structure of Western aid seek to impose tougher sanctions Russia as “a response to the illegal ance, Ukrainians still note with Ukraine surrendered its Soviet-era programs only serves to prop up the until Russia returns Crimea and invasion and annexation of Crimea, displeasure several aspects of the nuclear weapons in exchange for corrupt status quo. upholds its end of the Minsk peace followed by the brutal violation of relationship. security guarantees from the United Pyatt batted down the criticisms. agreement, including a cease-fire, an Ukraine’s territorial integrity, which One is that Obama is set to become States, Britain and Russia - which is On the question of U.S. aid, end to support for separatists and as so far produced 10,000 deaths the first sitting U.S. president not to now the enemy to most Ukrainians. Pyatt said that “our assistance has the return of the eastern border to and untold injuries, and people who visit Ukraine since Ronald Reagan Yet other complaints range from played an important catalytic role Ukraine’s control. have been driven from their homes.” was in office. America’s slow response to Russia’s that has strengthened the hands of The push by some Russian sym- The situation in the Kremlin- Another complaint is that the U.S. Crimean invasion in 2014 and, while reformers.” pathizers in the West to ease sanc- controlled areas of eastern Ukraine The fact that Obama is not going tions because the measures haven’t shows that the war may, indeed, go to visit Ukraine, and even described succeeded yet is a “morally bankrupt on for a long time. The separatists Ukraine as not one of America’s core argument,” Pyatt said. His assess- have “more tanks and more artillery interests, doesn’t mean that U.S. sup- ment is that “the Kremlin is trying and more armored vehicles than port for Ukraine is weak, Pyatt said. to play the clock now, hoping that most NATO countries,” Pyatt said. EASE YOUR MIND! “If you look at what this admin- the longer it drags out, the harder “It’s not going anywhere aside from AFFORDABLE HEALTH istration has done, obviously led by it will be for the West to retain continuing to attack Ukrainian posi- INSURANCE PLANS Vice President Joseph Biden, nobody unity on sanctions, which is one of tions on the contact line.” has done more than the United the Obama administration’s most States to stand by Ukraine and the important accomplishments.” people of Ukraine in this crisis,” He said it’s important to remem- more Pyatt on page 11 Pyatt said. “The fact is that President Obama has invested a great deal of time in Ukraine. He knows the issues inside and out. I can say that having been part of his conversations with AMC Health Insurance Plans, starting at $45 per month:* Poroshenko and (ex-Prime Minister • Physician and Specialist consultations Arseniy) Yatsenyuk.” • 24-hour Outpatient and emergency treatment With Biden as point person on • Radiology and Laboratory services (X-Ray, Ultrasound, Diagnostics) • Child vaccinations (according to US schedule) U.S. policy, Pyatt said nobody can • Home or office doctor visits “doubt both his commitment to see- • Expert second opinion with US and European Hospitals ing Ukraine succeed but also his willingness to be very, very tough on

*The AMC Health and Wellness Plan is a licensed healthcare delivery plan, paid on an annual basis, anti-corruption, rule of law, gover- designed to provide primary and urgent care health and assistance services. The above price is AMC’s basic Outpatient Plan, covering all outpatient services with a plan utilization limit of $10,000 per nance -- issues that are clearly still person, per year. For more information about this and other health insurance products, please call us at in need of a great deal of work.” 490.7600 or visit us at www.amcenters.com Drive to keep sanctions Pyatt said Obama has also invested time into keeping economic sanc- Kyiv: +38 (044) 490 76 00 tions against Russia, a drive led in www.amcenters.com the European Union by German U.S. Ambassador to Ukraine Geoffrey Pyatt and Nadiya Savchenko, Chancellor Angela Merkel. the member of parliament and former soldier who was imprisoned by And Ukraine, Pyatt said, can count Russia, meet American troops on July 1. (U.S. Embassy in Ukraine) www.kyivpost.com July 8, 2016 Business 11 As Pyatt leaves, one question stands out: Are Ukraine changes irreversible?

Pyatt from page 10 the shooting on the Maidan, saying ‘Dammit. something has to be done. “We have to answer that,” he said. Can’t somebody do something about “We are not going to negotiate away this?’’’ Ukraine. There will be no Yalta II. That was followed in quick suc- We will be clear on the principles cession by Russia’s Crimean invasion that it’s not alright to invade a sov- and war in the eastern Donbas. ereign country in the 21st century. If When “every time you thought it you do that you will pay the price.” couldn’t get worse, it did,” Pyatt said. U.S. Assistant Secretary of State As for Russia’s invasion of Crimea US Secretary of State John Kerry points on March 4, 2014, as he stands with U.S. Assistant Secretary of State Victoria Nuland has been involved less than a week after Yanukovych Victoria Nuland (R) and U.S Ambassador to Ukraine Geoffrey R. Pyatt at a memorial honoring demonstrators in shuttle diplomacy with Vladislav fled, Pyatt said that Ukraine simply killed during the EuroMaidan Revolution that ousted President Viktor Yanukovych on Feb. 22, 2014. (AFP) Surkov, a top aide of Russian didn’t have the military forces to President Vladimir Putin. The out- fight back. “It wasn’t an option,” he process of transition,” Pyatt said. ing for positive changes in many Truly irreversible? come of several meetings, most said. “He certainly doesn’t want to be sectors of government and society, Even in July 2014, “it was an open recently in June, has yet to produce “In retrospect, I wish we would latest in a long string of unsuccessful he said. question whether Ukraine would a breakthrough. have responded more strongly with Ukrainian presidents. He has three The National Anti-Corruption crack wide open,” Pyatt said. “Odesa Peace depends on Putin. our sanctions, more quickly,” Pyatt years left.” Bureau of Ukraine has been formed. has happened (in which 42 people In 2014, “I said Vladimir Putin said. “We were in that regard bam- He believes that at least some oli- Energy sector reforms -- including were killed in May 2, 2014 clash- could end it this with one phone call. boozled by the ‘little green men’ and garchs are playing a less destructive market pricing and Naftogaz cor- es between pro-Russian and pro- It’s tragic how little has changed. He the debate we had to have about ‘Is role, which is a positive sign. “Most of porate governance changes -- will Ukrainian demonstrators). The econ- could still end it with one phone call. this the Russian government?’ and them understand that the old busi- eliminate opportunities for corrup- omy was still teetering. The Rada was He hasn’t. This is a war created and ‘What’s going on here?’” ness models have exhausted them- tion, although vested interests fought the Yanukovych-era Rada that wasn’t fueled by the Kremlin now for two Overall, looking at the U.S. selves,” he said. “The environment is hard to keep the corrupt system in passing much of anything. The whole years. The implementation of Minsk response to Ukraine’s crises in the changing. It’s certainly not complete.” place, he said. question of Ukraine’s survival as a depends 100 percent on Moscow to last three years, Pyatt assessed: He has confidence in the “vigi- Public officials will also be unified democratic state was very change its strategic direction and it’s “Could we have done more? Perhaps. lance of civil society” and believes required to disclose their finances much up for grabs. It’s not the case that simple.” Do I wish we moved more quickly? that the journalism profession in on forms that go publicly online in anymore.” Certainly.” Ukraine has improved as well. “I August. A psychological change that has Areas of regret think that it’s one of the real success And on and on. taken hold among Ukrainians is as But Pyatt also leaves with some Poroshenko legacy stories,” he said, but “obviously this is Some of the more recent arriv- important as the structural changes, regrets. Pyatt said Ukraine is a much stron- an area where there’s lot of work that als in the diplomatic communi- he said, describing it as “this amazing “I generally don’t do regrets, but ger nation today than when he came has to be done.” ty “get frustrated very quickly” transformation that has taken place my greatest regret in this job is that I three years ago. Ukraine’s military forces are much byt he slow progress, Pyatt said. with Ukrainians’ view of themselves.” haven’t been able to do more to stop The nation is better off without more capable today, a turnaround “Ukraine can break your heart.” Despite the progress, however, all of the killing and human suffering Yanukovych as president, although that started showing results in July But he said that a more optimistic “the question that I will leave unan- that Ukraine has gone on through Poroshenko’s legacy remains 2014, when its troops liberated outlook can be gained by simply swered when I depart here, assum- over the past three years,” Pyatt said. uncertain. Sloviansk, “the first city retaken as comparing the situation today with ing it’s sometime later this summer, is “First on the Maidan and, clearly for “I think he clearly wants to be Ukrainians finally began to turn the where Ukraine stood in the sum- whether it’s reached the point where me, the darkest day was on the 20th remembered as the leader who took tide,” Pyatt said. mer of 2013. it’s truly irreversible,” Pyatt said. “I of February, watching livestream of Ukraine into Europe and led the Many selfless reformers are push- think it’s pretty close.” 

Advertisement American company is building a new engineering ecosystem in Ukraine

Ukraine today. According to the IT Prospect engineers not only in Ukraine, but around the world. time. The event was only possible with the support Info Centre of the Ukrainian IT Industry, more More than 400 startup ideas, including Avision Ro- of Noosphere. The Championship was attended by than 5,000 IT engineers emigrated to West- botics (the 2015 Vernadsky Challenge winners), 111 rocketeers from 12 countries and has become a ern Europe and the United States in 2015 alone. TechNovator XE, Hideez Band (the 2016 Verna- true space technology and engineering festival. Brainpower has long been a major Ukrainian ex- dsky Challenge winners) took part in the Vernadsky In August 2016 the company will take on an even port. However, not everyone who leaves the coun- Challenge. In 2016, the finalists and guests got a bigger challenge. With the support of Noosphere, try forgets about their native land. There are many surprise — the sum of the grant for the winners was Ukraine will host the World Championships for examples of knowledge leaders helping their coun- doubled and is now Hr 2 million ($80,000). Space Models. The event will take place on August try to regain its previous prosperity. Max Polyakov, The Noosphere Engineering School is constantly 22-30 near the city of Lviv. Twenty countries have Founder of Noosphere, is an excellent one. looking for ways to interact with students and fa- already applied to participate in the competition, Several years ago, the Ukrainian businessman left cilitate their desire to develop their own engineer- which promises to become a family-friendly holi- Ukraine and moved to the United States, where he es- ing projects. The best of the bunch, such as ArtOs, day that will include breathtaking rocket launches, Noosphere Engineering School tablished the international asset management firm — a specialized piece of software for artillery batteries, hands-on classes for children, and outdoor activities. Noosphere. Within a few month, the office of Noo- intelligence officers, and topographical surveyors, Noosphere is full of new ambitious plans and in- In the Soviet Union, science and technology sphere Ventures Inc was also established in Ukraine. and MyPolice, a mobile application that helps facili- teresting projects. It is continuing to build up the was an important part of national politics, prac- Here in Ukraine, Noosphere has created a num- tate communication between police services and the concept of the noosphere in the framework of the tices, and identity. It created a background for ber of successful projects, including an engineering community, have received support from Noosphere. modern world, where intelligent human activities the development of the engineering sector and startup ecosystem which consists of the Noosphere According to Polyakov, space technologies should should be the core determining factors of the devel- helped build economic prosperity. Engineering School, the Vernadsky Challenge engi- be one of the ripest sectors to be developed in opment and growth of any organization. neering startup competition, and the BestRoboFest Ukraine. That is why Noosphere is proud to be the The collapse of the Soviet Union and subse- robotics and engineering competition. These help general partner of the Ukrainian Spacemodelling quent economic crisis caused hundreds of thou- support young scientist and innovators who are con- Sports Federation, and actively supports amateur sands of highly skilled and educated people to stantly adding new knowledge and value to society. rocketry events in Ukraine. leave the country. The outflow of the engineers For the last two years, these Noosphere initiatives In 2015, Ukraine also hosted the 2015 FAI Eu- and IT experts remains a huge challenge for have become popular among young and experienced ropean Championship for Space Models for the first noosphereglobal.com 12 Business July 8, 2016 www.kyivpost.com

CEO To Watch Editor’s Note: CEO Watch is a regular Kyiv Post feature profiling leaders who run Ukraine’s biggest and best companies. Airship producer Igor Pasternak building blimps for whole world

BY YULIANA ROMANYSHYN a contractor of the U.S. government, [email protected] manufacturing surveillance aerostats to monitor airports, border areas, How can 150 tons of cargo be deliv- and oil pipelines. ered by air from Los Angeles to Kyiv, “The government recognized the traveling for 10,124 kilometers in huge capabilities of the technolo- two days or less, with no stops for gy we’re producing,” Pasternak says refueling, and no runway or landing about his company’s work with the infrastructure to use? U.S. government. It sounds like quite a problem, World wide Aeros Corp. now dom- but Igor Pasternak thinks he has inates the market of surveillance the answer. He invented a lighter- blimps, he said. than-air cargo transporter called an The Sky Dragon airship remains aeroscraft. the best-selling vehicle Aeros has The 52-year-old Pasternak heads designed. The latest version, the Sky a company, Worldwide Aeros Corp., Dragon 40E, can travel more than that has been developing such air- 500 kilometers, conduct 24-hour craft since 1986 – first in Soviet non-stop monitoring and imaging, Ukraine, and then, after relocating in and observe up to 70,000 square 1994, in the United States. kilometers. The development of his first aero- But for Pasternak, a successful com- scraft cargo transporter, called the pany is not enough. His next chal- Dragon Dream, was financed by the lenge is to revolutionize the delivery U.S. Department of Defense. of cargo by air with his aeroscraft. The 81-meter-long and 30-meter- “It’s kind of a new type of air wide prototype was built in 2013, vehicle. It is a little revolution in and it’s only the smallest cargo logistics,” Pasternak says. vehicle proposed by Pasternak. In the future, he plans to build it in The Dragon Dream, a prototype of a lighter-than-air cargo airship built by Worldwide Aeros Corp., lifts off in Being Ukrainian four sizes. The biggest, the ML86X, its first flight at the Marine Corps Air Station in Tustin, California, in August 2013. The blimp is 81 meters in After Pasternak moved to the U.S. will be about 280 meters long and length and 30 meters wide, and incorporates an revolutionary new buoyancy control system. (Worldwide in 1994 and before 2014, Pasternak Aeros Corp.) able to carry 500 tons in its internal returned to Ukraine only once for cargo hold. a weekend. Then the EuroMaidan cargo to the ground, winched down aeroscraft is fully certified by the U.S. Reestablishing the company in the Revolution in Ukraine occurred, and Submarine of the sky from its cargo hold. aviation authorities. U.S. wasn’t easy. 20 years after he first left the country, But what would stop a lighter-than- It achieves that through an inno- “But when you don’t know the Pasternak returned to Ukraine again. air aeroscraft shooting straight vative buoyancy control system simi- Coming to America challenges you’re going to be faced In February 2014, after the secu- up into the sky after unloading a lar to the ballast systems submarines As a 17-year-old student, Pasternak with, you don’t take them as chal- rity forces of ex-President Viktor cargo equal to the weight of 150 use. founded an airship design bureau lenges,” he says. Yanukovych shot dead around 100 elephants? To reduce buoyancy, it pumps at Lviv Polytechnic University. When the dollars Pasternak EuroMaidan protesters, Pasternak In the past, such vehicles have had helium out of its lift bags into com- Following the perestroika reforms, brought from the Soviet Ukraine ran found himself walking on Kyiv’s central to vent their buoyancy gas (usually pressed helium tanks, with air being he set up one of the Soviet Union’s out, he secured a bank loan. square, Maidan Nezalezhnosti, where helium, which is expensive) when sucked in to fill the void left as the first private aerospace companies, “We were just crazy enough to ask, the central protest camp was based. landing, and use external ballast, helium lift bags deflate. Air being Aeros, in 1986, and a year later and people really thought we knew “(At that moment) I understood such as rocks, water, or lead bags, as heavier than helium, this reduces he got his first order – to make what we were doing, so they lent us that I am a Ukrainian,” Pasternak said well as landing infrastructure such the aircraft’s buoyancy. To increase an aerostat for the Lviv City Day the money,” he said. during an interview on Ukrainian as mooring cables and towers, to buoyancy, the helium lift bags are celebrations. Today, Pasternak’s Worldwide television’s Espreso TV shown on hold them in place when offloading inflated again, pushing the heavy air Although trained in civil engi- Aeros Corp. employs around 100 April 2015. cargo or passengers. out of the aircraft’s body, and mak- neering rather than aircraft design, workers in Montebello, California. Before seeing the EuroMaidan pro- The aeroscraftoscraft needs none of thatthat.. ing the vehicle lighter agaiagain.n. Pasternak focused on this business. The company has a $15 million tests, he identified as an American. It can evenn hover in pplace,lace, without The aeroscraft is eqequippeduipp Aeros started to make tethered aero- annual turnover (according to Pasternak then started to visit touching ddown,own, and deliver a withwith six multidirection-multidirecti stats, mainly for advertising purposes, Ukrainian online newspaper Forbes), Ukraine every month or two. In al turbofan engines tthat and sell its products in the Soviet and produces airships for countries January, he signed a contract for allowallow thethe aircraft to republics and even further afield. all around the world. Aeros to supply Ukraine’s State Igor Pasternakasternak hover, maneuver, anda But then came the collapse of the Its clients include the U.S. Border Service with a surveillance Citizenship:hip: U.S.U.S.,, for- propel the DragonDrag Soviet Union, and in the ensuing eco- Army, MasterCard, Germany’s system to monitor the Sea of Azov. merly Sovietviet Dream to flight spspeedse nomic turmoil, sales dried up, and Commerzbank, and dozens of private He suggests business people in Age: 52 of upup to 60 knots, or manufacturing materials became companies. Since the EuroMaidan Ukraine start thinking globally, as he Profession:on: Airship design-design- 111 kilometers perper hour.ho hard to find. Revolution the company has worked did two decades ago. er and builderilder FutureFuture modelsmodels shshouldo So in 1994, Pasternak packed his with the Ukrainian Defense Ministry “Ukraine can follow the European How to ssucceeducceed iinn bebe ablablee ttoo ttravelra possessions – consisting mostly of and has opened a subsidiary in model, where there is no innovation, Ukraine: “Ukrainian at upup to 185 technical books crammed into two Ukraine – Aeros Ukraine Ltd. where everything has become slow can followw the U.S. kilometerskilomete pieces of luggage – and moved to and standardized, or Ukraine can model, wherehere perper hour.hour the U.S. with two colleagues. From advertising to the follow the U.S. model, where the the Americancan TheTh When he got to the U.S., he had military American dream exists. Just grab dream exists.sts. DragonD rag almost no money, no connections in Pasternak started producing blimps the idea of the American dream Just grab ththee DreamDream is the business world, and, furthermore, in the United States for use by broad- and call it the Ukrainian dream,” idea of thee the onlyo no English language knowledge. casters and advertisers, and his com- he jokes, adding more seriously: “If American dream, andnd vehiclev e hic “I had absolutely zero English pany’s initial successes were built on you believe in your vision, you can call it the ofof its typety skills,” Pasternak recalls. “The only that business. But that changed after change the world.” Ukrainian built so far, things I knew about the U.S. came the 9/11 attacks in New York. Watch “The Blimp-Maker,” a video dream.” but PastPasternakern from the Hollywood movies.” Almost overnight, Worldwide by The New Yorker telling the story (Worldwidee Aeros hohopespes to ppro- But he and his colleagues had Aeros Corp. went from making of airship maker Igor Pasternak, Corp.) ducducee thou-th dreams of building airships, and advertising blimps to making surveil- here: https://www.youtube.com/ sands after the the knowledge of how to do it. lance blimps. The company became watch?v=QwLa24BO7oI  www.kyivpost.com July 8, 2016 Business 13 American Domenico will go from Kyiv to attend Democratic National Convention

BY BRIAN BONNER to be a delegate for his first time at a He understands the anti-establish- [email protected] national convention. The Democrats ment appeal of Trump. It’s partially meet in Philadelphia from July the fault of both parties, Domenico When American Reno Domenico 25-28, after the Republican National said, in not reaching out to a “white comes back to Kyiv from the 2016 Convention coronates Trump in working class” that feels “cast adrift” Democratic National Convention Cleveland from July 18-21. by policies going back to Ronald in Philadelphia this month, Hillary Domenico was elected by fellow Reagan in the 1980s. Clinton will be the party’s nominee Democrats Abroad and is one of “There has been a slow erosion American Reno Domenico, Ukraine president of Democrats Abroad, for president and Domenico will be only four from the expat organiza- of the American working class, the speaks with the Kyiv Post on July 6. He is a delegate to the Democratic looking for someone to debate. tion to be chosen as a delegate. union movement, of family support National Convention in Philadelphia on July 25-28. (Volodymyr Petrov) Domenico, the longtime presi- While he admires U.S. Sen. Bernie structures and community. All has dent of the Ukrainian chapter of Sanders, the Democratic runner-up, left the traditional white working mitic symbol from a neo-Nazi group. While Bill and HIllary Clinton Democrats Abroad, took the side Domenico thinks that Clinton will clase ethnic voter without much to That is quite telling, Domenico said. have had their problems and made of Barack Obama in 2012 against make a great president. hold on to,” Domenico said. To paraphrase Mahatma Gandhi, many mistakes, “they kept their fam- American Brian Mefford, a consul- “I believe Hillary Clinton is a “My dad was one of those who you are what you think. ily together. They’re more of an tant living in Kyiv, who stood up for fighter. I think she will fight for me. I worked in a factory, was a union Facebook and Twitter are good all-American family type than Donald Mitt Romney in a debate sponsored think she’ll fight for you and I think member. I remember reading the mirrors of a person’s interests, Trump, who has had three wives and by the Kyiv Post. she’ll fight for the American people,” union newspaper that came every Domenico said. brags about how avoiding veneral But in 2016, Republicans willing to Domenico said. “This world of poli- Friday,” Domenico recalled. “It “Look at the things I post and disease was his Vietnam War.” stand up for Donald Trump are few tics is difficult. As much as I like and helped keep people organized. the things I recommend people Bottom line: “This election is not and far between. admired Barack Obama, sometimes It provided a tangible assocation to read,” Domenico said. “You just Democrats vs. Republicans. “I imagine there’s somebody out his negotiations left us on the short between politics, their life and family will find a lot of polticial news. This is an electiona about right there who will support Donald side of the stick. With Hillary there and community and church.” Maybe some stuff about Italian vs. wrong...You’re not going to find Trump,” Domenico told the Kyiv will still be blood on the floor, but it Eecting Trump will be a disaster food periodially or even something Hillary making racist comments. An Post in a July 6 interview. “I hope won’t be all ours.” for America and the world. about attractive women. You’re not America based on fear and rac- we’ll find somebody to debate. I am Defeating Trump, and his toxic “He has convinced me he is a going to find me trolling around ism and hate is not the America I willing.” rhetoric, is the main goal. While he stone cold racist,” Domenico said of white supremicist Nazi websites want to live in. Hillary understands But first things first. Domenico, rates the chances of a Trump victory Trump. like Trump. You don’t just stumble working-class families are suffering 68, the president of the Kyiv-based at 20 percent, “that’s still a scary Recently, Trump drew yet more across this information. It must be in America and she’s going to do Sterling Business School, is excited percentage for America,” he said. criticism for re-tweeting an anti-Se- because he’s interested.” something about it.” 

UNITED STATES OF AMERICA

SUPPORTING FREEDOM AT HOME, IN UKRAINE AND AROUND THE WORLD

July 4, 2016

Freedom has its life in the hearts, the actions, the spirit of men and so it must be daily earned and refreshed else like a flower cut from its life-giving roots, it will wither and die — Dwight D. Eisenhower

Greetings from the members of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.USUBC.org 14 Business July 8, 2016 www.kyivpost.com Kyrpa: Successful prosecutions important to deter bank fraud

Transparency from page 1 fication of the identities of true or Yulia Kyrpa, a Kyiv lawyer who beneficial owners of banks, the sec- in state-insured losses, $5.2 billion is chairperson of the banking tor was destined for disaster. in uninsured losses and $3.2 billion and finance committee of the “If we look at any other European owed to NBU from bankers who 500-member Ukrainian Bar country, it is unthinkable to work in Association, sits down with failed to repay their refinancing loans. the Kyiv Post on June 30 to such a blind environment where you The shakeout in the banking sec- explain what went wrong with don’t know the beneficial owner,” tor has whittled the number of banks Ukraine’s banking sector and Kyrpa said. “It’s impossible to under- from 180 to 100 in the last two how to fix the problems. She stand the real amounts of insider years as the NBU and the state-fi- is a partner with AEQUO law lending and loans granted to related nanced Deposit Guarantee Fund firm. (Courtesy) parties.” have improved laws and tightened Yet another huge problem took regulations. Before the shakeout is place in a months-long gap between complete, the number of banks left the time a bank’s finances became standing may be as few as the top 20 problematic and the time it was banks, which account for 88 percent declared insolvent. Those problems of the sector’s assets. were exacerbated by weak powers But Kyrpa said it’s too early to call given to the NBU supervisor, or cura- the reforms a lasting success. tor, of the troubled institution. “I don’t think it’s irreversible,” “They didn’t have a veto right. Kyrpa said. “To become irrevers- They couldn’t stop any transactions. ible, they need to institutionalize the They were only able to report to positive changes. Right now, in my NBU if the bank was not performing view, they (NBU leaders) depend on to expectations or if they anticipated specific people. Some are focused on in violations of legislation,” Kyrpa reforms and as long as they support said. “It resulted in the situation the changes and a fair, Western-style some criminal violations of the law,” and Deposit Guarantee Fund, Kyrpa all-important number: Their credit when former shareholders of insol- of communication, it works this way.” Kyrpa said. “It remains to be seen said, investigations are starting to score as kept by such rating agen- vent banks stripped off all the assets “But it takes much longer than how the Deposit Guarantee Fund develop in the “right direction.” cies as TransUnion and Equifax. The in this banks in this period of time.” just two years for these changes to will handle all those cases and bring But even under optimal circum- agencies monitor such credit factors The process was so poorly regu- be implemented on the level of the owners of failed banks to liability.” stances, only 10 percent of stolen as the amount of credit being used, lated, Kyrpa said, that bank owners entire institution, to create a corpo- assets will be recovered. In Ukraine’s payment history, derogatory remarks sometimes even denied NBU access rate culture that would support such Outside experts needed less than ideal circumstances, Kyrpa (for non-payment), age of credit his- to documents. values and so on,” she said. “There Kyrpa said that both the NBU and said the public can expect not much tory, number of accounts opened and Additional questions have been are still many old-fashioned people Deposit Guarantee Fund need to more than 5 percent to be recovered number of credit inquiries that others raised about the $3.2 billion in state who used to work with the previ- hire outside experts because the – or $570 million out of the estimat- have made. The system is so detailed losses from refinancing loans issued ous regime and work according to state agencies are not up to the task. ed $11.4 billion in losses. and accurate that it gives the person by the NBU to bankers who didn’t their values. They are not proactive First, they were overwhelmed with – and [otential lenders – detailed repay them. The non-transparent enough. They do not always work the amount of financial losses and, information on balances remaining process of the NBU deciding who to the best interests of the NBU and secondly, until recently, they didn’t on credit cards and home mortgages. gets refinancing loans and on what investors in the banking sector.” “have special units of experts who The scores range from 300 to 850. terms and who doesn’t is controver- The NBU has highlighted three were able to investigate financial The score determines whether a sial within the industry. areas of big change: fraud, especially in most of the cases person is a good credit risk and will In the end, there are valid reasons 1. Now the central bank knows the we are speaking of international get a loan and whether the borrower to keep the refinancing decisions beneficial, or true, owners of finan- financial fraud.” is eligible for the lowest interest rate. confidential to avoid market panic cial institutions, unlike in 2014; The Deposit Guarantee Fund In Ukraine, such a system is not and a run on bank depositor, Kyrpa 2. safeguards have been put in “wasn’t designed for that. They don’t working and, oddly, Kyrpa said that said. Refinancing banks that fail to place to curtail insider or related-par- have the internal capacity to start banks are partly to blame. repay the loans only add to the state ty lending, one of the biggest culprits such procedures and trace assets ‘No consequences’ “There were some initiatives to losses, she said, while some bank- in racking up the losses along with worldwide. It’s extremely important Kyrpa also said that the creation of a implement this credit bureau, but it ers claim they failed because they asset stripping by owners before their to involve proper outsourcing ser- public registry of deadbeat borrow- never started working in an efficient weren’t granted refinancing. banks are declared insolvent; and vices focused on asset tracing and ers could also significantly cut down way because banks don’t share this “The discretionary powers of NBU 3. Owners are legally criminally recovery,” Kyrpa said. on the number of unpaid loans and information,” Kyrpa said. “Ultimately lead to rumors and discussions,” she liable for fraudulent losses. On the positive side, the Deposit put banks on notice to improve their there is no overall ranking for every said. “It’s impossible to remove the dis- Guarantee Fund has finally set up lending practices. borrower because information is not cretion of the regulator. To limit such Convictions needed a special unit solely in charge of Such an idea is resisted by the shared efficiently. There is still room discussion, the NBU has to be seen as But simply changing laws and tight- liquidating assets of insolvent banks, NBU and others in the industry who for improvement in all areas. This a strong and unbiased regulator.” ening regulations are not enough. she said. The process went slowly value banking secrecy about the pub- involves sharing the information, “It’s important to have some suc- because many restrictions made it lic’s right to know about unpaid loans assessing the borrowers and creat- Financial illiteracy cess stories, to have some cases difficult to evaluate and sell the for which taxpayers eventually pay. ing a certain score for them. I think Yet another regulation shortcoming where beneficial owners who assets quickly, or individual bank “I would support this idea in the banks sometimes don’t put proper – unsustainably high interest rates brought their banks to insolvency by liquidators were afraid to make deci- case of non-performing loans” Kyrpa information in the United Registry of offered by banks on deposits – was stripping assets and taking money sions on their own because of the said. “That’s the only possibility to Borrowers.” exacerbated by Ukrainians’ “insuffi- out of the system will be brought to lack of transparency in involved in decrease the amount of non-per- With lending frozen, creating a cient financial literacy.” IN contrast criminal liability,” Kyrpa said. some asset sales. Here again, she forming loans in the system. I think functioning credit bureau is not a top with many Europeans, who seek secure “Unless it’s done and until it’s said, experts should be brought in it would create extra discipline. It priority of bankers, she said. returns for long-term investment, many done I don’t think that only the because assets and liabilities of insol- would make bad-faith borrowers sort “This issue will become more rel- Ukrainians still look at bank deposits as existence of law will be enough. The vent banks have a “special methodol- of like persona non-grata like in evant and more attention will be a form of gambling, she said. law needs not only to be in place ogy of their own.” the Western countries where, if you given to it when lending resumes “In Ukraine, we managed to see but to be implemented in practice, Additionally, civil and criminal don’t repay a loan from the bank, again,” Kyrpa said. “Right now banks a situation of the so-called deposit when it’s perceived by the public as proceedings run the risk of obstruc- you can’t have a proper job or bor- are focused mostly on recovery of wars as banks competed in offering a working legal instrument,” she said. tion in courts. row another loan or get any subsidies loans previously granted or restruc- highest possible interest rates on “Otherwise, it’s just a piece of paper “The Ukrainian court system is from state or whatever, depending turing of those loans. I wouldn’t deposits in banks,” she said. “The which has no implementation and widely regarded as corrupt,” Kyrpa on the country. expect major changes until new less reliable banks offered the high- no consequences.” said. “To overcome these obstacles, By contrast, in Ukraine, “in most financing resumes again.” est interest rates, which actually was Only recently were laws passed it’s important to put extra efforts on of the cases, there are no conse- welcomed by the population.” that “invented proper legal instru- this to involve the best experts with quences. Borrowers who sometimes A big mess ments to bring beneficial owners a proven track record on financial cannot repay loans due to economic The crisis exposed how unregu- 2020 of failed banks to criminal and civil investigation.” reasons know there will not be any lated the banks in Ukraine had The NBU has adopted a long-term liability,” Kyrpa said. “This law still If blocked by the court, she said, significant consequences. They will been. “I would stay it was not con- strategy to guide its actions until remains untested.” the best recourse is often to com- not be excluded from society. That’s trolled at all,” she said. “Nobody 2020. If “nothing bad happens” The new laws also can be applied plain to state authorities and alert why they use these opportunities.” really controlled the process of bank before then, Kyrpa said, “perhaps retroactively, “meaning that owners the news media. establishment.” these changes will work on the level of failed banks can still be brought to With teams of asset-recovery Credit scores needed Starting with the lack of NBU of the entire institution and perhaps liability if it gets proven they caused experts now being hired by the NBU In the West, most people know one enforcement of laws requiring veri- become irreversible.”  www.kyivpost.com July 8, 2016 National 15 #IamNotAfraidtoSayIt hashtag campaign helps Ukrainians come to terms with sexual abuse

BY VERONIKA MELKOZEROVA department of the La Strada-Ukraine to be strong and can’t afford to cry [email protected] women’s rights center. or show weakness,” Korenkova told “She will have to prove the she was the Kyiv Post. Anastasiia Melnychenko, the head of raped, being subjected to humiliating human rights organization Studena2, tests, questioning and even physical Damaging stereotypes was incensed when she read a man’s examinations. Otherwise it is just her Social stereotypes still play a dam- Facebook post about a woman he word against his,” Zubchenko said. aging role in modern Ukrainian had found half-dead in park after she La Strada-Ukraine helps victims of society, Zubchenko said. She said had been raped. The man comment- sexual violence in court. Zubchenko that the roots of sexual violence lie ed that “(the woman) shouldn’t have said sexual harassment and rape in the influences of parenting and been hanging around alone at night.” cases usually take far too long to be social expectations, or more precisely She immediately started a considered by the Ukrainian justice on the stereotypical differentiation Facebook hashtag campaign, writing system. between the accepted roles for males her own story of all the sexual vio- “One case of child molestation has and females. lence she had endured, decrying the been going on in a court in Dnipro “From childhood girls are raised practice of blaming victims for the for seven years already,” she said. with the message that a woman sexual abuse they suffer. According to the crime sta- must be polite, quiet and a beautiful “I was furious and scared when tistics regularly published on the homemaker, who shouldn’t argue I found that some other men in Prosecutor General’s Office website, with her husband, and who should the comments section supported the in June alone 580 sexually related satisfy all his needs,” she said. male poster, saying women are them- crimes were committed in Ukraine: These role models are hangovers selves responsible for being raped,” 229 rapes, 112 cases of rapes involv- Ex-Deputy Education Minister Taras Finikov (R) laughs as he attends from the time when women had Melnychenko told the Kyiv Post. ing sodomy, 43 incidents of child a protest by the Femen human rights group on raising awareness of fewer rights then men. In mod- She shared her story under molestation, but only one reported sexual harassment in Ukrainian colleges on Nov. 16, 2009. (UNIAN) ern society, where women can earn the #ßíåÁîþñüÑêàçàòè case of sexual harassment. money and work at the same level as (#IamNotAfraidtoSayIt) hashtag, and their comments in the hashtag cam- “I was crying for help, screaming men, such stereotypes are irrelevant, in a day it went viral. Rapist always guilty paign, saying that it was wrong not to to the people on the square that I the expert said. More than 1,000 people reacted, Melnychenko recalled an incident speak out about such violence. Some didn’t know this man. But no one The hashtag campaign did not 200 shared her story, and some when she was 13, as she was walking of them confessed to even becoming cared.” meet with universal approval, how- started to tell their own stories under on Khreshchatyk Street in the heart used to some of the molestation, She managed to escape when the ever. Some people reacted by saying the same hashtag of the horrific sex- of Kyiv, holding bags of groceries in thinking it was completely normal stranger loosened his grip. “I rushed it was inappropriate to reveal such ual abuse they had been subjected each hand. Suddenly a male pass- behavior for men. into a nearby cafe and stayed there sexually explicit stories via social to. erby came up to her, grabbed her “I had a teacher in the first grade until my male friend came to rescue media, while others, mostly men, “I expected there would be a between her legs, and then released who took the class to the park to me. All the time, the stranger was insisted women were to blame if massive response. But their stories her and walked away as if nothing collect leaves, but showed us por- standing at the café window, watch- they were sexually assaulted, and touched my heart,” said Melnychenko. had happened. nography and than his penis instead,” ing,” wrote Pavlyk. “shouldn’t complain about men giv- The social media post revealed Another incident happened when wrote Velina Vaitkunaite from Kyiv. Some men also shared stories of ing them attention.” Some described cases of sexual harassment at work, she, at the age of 21, dumped her Myroslava Pavlyk recalled the day being sexually abused. even the hashtag campaign as being sexual abuse in childhood, and then boyfriend, who turned out to be she moved from Kyiv to Lviv. She “When I was 11, a dirty old man anti-male. molestation in the street, at school mentally unstable. had been sitting on some steps in the tried to seduce me, to lie in bed But Korenkova said that campaign and on public transport. “I had just came to his place city center, listening to a street music with me. I ran away when he started had been very useful for the victims Such frankness is unusual for to get back my grandpa’s embroi- concert, wearing a long skirt and touching me. No sex happened. Child of violence, as it was a type of group Ukraine, and blaming the victim dered shirt, which he had borrowed. a simple t-shirt. When she started abuse is disgusting, so is coercive therapy. for sexual crimes is still common He grabbed me, twisted my arms, to stand up, a man from the crowd sex. It’s not only women who can be “People don’t usually reveal these in Ukrainian society, according to stripped me and then tied me to offered to help her. the victims of sexual violence,” wrote horrific experiences, because they’re experts. The attitude is a legacy of the bed naked. He didn’t rape me; “There were a lot of people around Yevgen Mitsenko, 37. afraid of criticism,” the psychologist social conditions in the Soviet Union, just hurt me in different ways. I felt - what bad thing could happen, I La Strada-Ukraine psycholo- said. where sex was a taboo subject. so weak, I couldn’t do anything,” thought - and I gave him my hand. gist Anastasia Korenkova said that “This hashtag campaign helped Female rape victims who take their Melnychenko said. However, after I stood up and tried unfortunately, male victims of sexual them not only find support, but also cases to court still find the process “But I’m not ashamed to talk about to take back my hand, he grabbed harassment turn to them for help realize that they are not alone in of seeking justice traumatic as well, it because it wasn’t my fault. The me harder, and started dragging less often. their problem. This was very useful, according to Alyona Zubchenko, the rapist is always guilty.” me away from the central square,” “That’s all because of the social as it helps people let go of the prob- head of the public communications Women across Ukraine agreed in recalled Pavlyk. stereotype of a ‘real man,’ who has lem.” 

Important point U.S. Secretary of State John Kerry (R) gestures as he talks with Ukrainian President Petro Poroshenko during their meeting on July 7 in Kyiv. At a press conference following the meeting, Kerry warned that the Minsk II peace process was “doomed to fail” unless there was a cease-fire and pullback of heavy weapons from the front line in the Donbas. (Mikhail Palinchak) 16 National July 8, 2016 www.kyivpost.com Cloud computing topic of 2nd Kyiv Post CEO Dinner

BY BRIAN BONNER [email protected] Participants talk at the 2nd Kyiv Post CEO Dinner, which took place on July 5 at the Hilton Kyiv Hotel. Ukraine, and especially its govern- (Volodymyr Petrov) ment, needs to get its head in the clouds, and embrace new computing technology that promises to improve both the economy and the sharing of knowledge at a dizzying pace. That was the overriding message from the discussion on “Regulation of Cloud Computing,” the theme of the 2nd Kyiv Post CEO Dinner, which took place at the Hilton Kyiv Hotel on July 5. The two-hour event was sponsored by Stober, Poltavets & Associates and Kinstellar law firms. The dinner attendees agreed that the nation needs to move faster into the so-called Fourth Industrial Revolution, the digital one, and needs a well-developed strategy to do so. The discussion came as parliament considers a bill on government reg- ulations on cloud computing -- the practice of using a network of remote servers hosted on the internet to store, manage and process data, rath- er than using more cumbersome and costly isolated, local servers. Ukraine’s regulation of cloud data could go one of two ways: that of Germany, where privacy is so strong- ly valued that it could be stifling technological advancement, or that of Estonia, which is on the cutting Shymkiv, the tech-savvy deputy head using cloud technologies outside edge in using cloud technologies. of the Presidential Administration of Ukraine. The country should also sidestep and a participant in the discussion. For instance, everyone who used the alternatives favored by authori- The legislation would free the smartphones stores information in tarian regimes or dictatorships, din- government to shift to cloud stor- global servers. ner attendees agreed: Russia, for age more easily, and gain all the At the moment, Ukraine’s gov- instance, requires its data to be advantages this entails for working ernment can use cloud storage, but stored on its territory, while the with and analyzing data, rather than it must be located in Ukraine and international payment system PayPal continuing to use cumbersome and it must have undergone special is leaving Turkey because of govern- expensive local servers. certification. ment attempts to bring the technolo- Greater government use of cloud As usual, private companies are gy business under local control. storage will allow the public sec- ahead of government in adopting The cloud-first strategy of the tor to provide better services much such practices in Ukraine. United States was also touted, includ- more cheaply in a number of ways, But Ukraine’s government, when ing the guiding principle that what is event participants agreed. Tax eva- it uploads videos of its meetings to not forbidden is permitted, which all sion could be reduced for example, YouTube, sends bills by e-mail, or too often is the exact opposite of the by linking Ukraine’s customs and tax posting something on Facebook, is practice in Ukraine. data stores. already using the cloud. It’s just that Stober, Poltavets & Associates partner Marcus Stober (L), Kinstellar Paradoxically, one participant Some governments, however, some in Ukraine are afraid of accept- partner Kostiantyn Likarchuk (C), Kinstellar managing associate Olena Kuchynska. (Volodymyr Petrov) noted, Ukraine is both overregulated still have security concerns about ing this reality, Shymkiv said. by stifling rules, and under- regulat- their data being stored abroad, In fact, digital services enabled The greater use by the govern- Some dismissed as a myth the ed due to the lack of, or selective, but this should apply only infor- by cloud technologies — from 3G ment of cloud technologies could idea that isolated, domestically based enforcement of rules. mation classified as state secrets, mobile to payment systems — have also be a boon to the domestic data servers were safer than cloud tech- The bill on the regulation of cloud which is a tiny percentage of all been the most popular innovations storage industry, which is under-de- nology, noting that some of the worst data working its way through par- government information. Most data in Ukraine in recent years. veloped. The telecoms and banking computer viruses have been spread liament is supported by Dmytro can be stored even more safely And some see Ukraine’s new leg- sectors are seen as major potential by flash drives. Another concern, dis- islation as a chance to create a more customers. missed as more of a red herring, was open market than the European Representatives of two of the six big the danger posed from famous data Union, which is still trying to harmo- cloud computing multinationals were breaches such as those of WikiLeaks, nizing its digital market. at the dinner – those of Microsoft the Edward Snowden case, and the Some argued over whether Ukraine and Oracle. The other four are IBM, Panama Papers offshore company should adopt the UK model, which Google, Amazon and Facebook. scandal. In these cases, experts said favored domestic cloud providers for Concerns were expressed about it was the people who were involved, the first two years, or whether Ukraine whether local firms would be about not the technology, that was to should be open from the start to all to compete against the industry giants. blame.  providers, foreign and domestic, and not limit the market. The hope is Among the guests in the Hilton Kyiv Hotel: Dmytro Shymkiv, deputy head of the Presidential Administration; Lena that the development of technology Minitch, director of the Department of Innovations and Intellectual solutions will be spurred by eliminat- Property for the Economy Ministry; Maksim Ageev, CEO, De Novo; ing protectionism and creating equal Nadiia Vasilyeva, general manager of Microsoft Ukraine; Valentina opportunities on the market. Hriazeva, chief financial officers of .IO; Yuriy Kurmaz, general manager A shining example of a cloud-based of Ukrtelecom; Sergey Yanchyshyn, managing director of Oracle; Vera solution in Ukraine is ProZorro, the Platonova, country manager of MasterCard; Petr Yatsuk, chairman of online platform that has brought the board, Parkovyy Datacenter; Alex Lutskiy, co-founder and CEO, transparency and competition to Innovecs; Gyorgy Zsembery, CEO of Volia; Marcus Stober, partner, General manager at Microsoft Ukraine Nadiia Vasilyeva makes a point. Also Stober, Poltavets & Associates; Ivan Poltavets, managing partner - pictured: Co-founder and CEO of Innovecs Alex Lutskiy (L), chairman of the public purchases, eliminating the Stober, Poltavets & Associates; Olena Kuchynska, managing associate board at Parkovyy Datacenter Petr Yatsuk (2nd L) and Stober, Poltavets & multibillion-dollar corruption that of Kinstellar; Kostiantyn Likarchuk, partner of Kinstellar. Associates managing partner Ivan Poltavets (R). (Volodymyr Petrov) plagued government purchases. www.kyivpost.com July 8, 2016 National 17 At long last, anti-corruption court inches towards reality in nation

BY VERONIKA MELKOZEROVA from the FBI, the CIA, and other [email protected] organizations -- can bring them down,” said Sobolev. Bribe-takers and corrupt officials in But Ukrainian Justice Minister Ukraine have little to fear from the Pavlo Petrenko is against Sobolev’s short arm of Ukraine’s law. idea. Two years after Ukraine’s “I’m not a fan of importing special- EuroMaidan Revolution, which was ists to do our own job,” said Petrenko. supposed to sweep the country of “Furthermore, no foreign judges will corrupt practices, crooked officials be able to learn Ukrainian law and are still getting away with soft sen- the criminal code quickly.” tences – minimum prison terms or There are also legal obstacles to even just a fine less than the amount the idea: Mykhailo Smokovych, a of the bribe taken. judge at the Administrative Court Politicans are resistant to chang- of Ukraine, told the Kyiv Post that ing Ukraine’s notoriously corrupt Ukraine’s constitution forbids for- court system, where judges do what eigners from working as judges in they’re told by those in power or sell Ukraine. their rulings to the highest bidders. “Furthermore, a judge has to “The regular courts have been understand the mentality of the blocking the results of the Anti- nation he is passing a judgment on,” Corruption Bureau investigations,” said Smokovych. Vitaliy Shabunin, head of the Anti- However, Petrenko doesn’t rule Corruption Action Center, told the out the involvement of foreigners in Kyiv Post. a future anti-corruption court – just Without a special court to hear not as judges. corruption cases, the battle with “Foreigners could be present and graft in Ukraine will come to noth- help make decisions in a Ukrainian ing, added Shabunin. All the recent An activist holds the “scales of justice” as he participates in a protest against attempts by the Administrative court,” Petrenko said. “We could progress made by anti-corruption Court to cancel the re-attestation of police officers following a complaint from the police labor union on June let experienced specialists help bureau detectives will be negated. 15 in Kyiv. (Ukrafoto) Ukrainian justice. But the final rul- The creation of anti-corruption ing will always have to be made by a courts was included in amendments Ukrainian judge.”  to the Constitution approved by the Ironically, the bigger the bribe, the the model for the new anti-corrup- Ukrainian parliament on June 2 as better chance the corrupt official has tion courts, lawmakers and activists a part of the judicial reform start in of evading justice, the expert added: have to concentrate not only the Ukraine. Only 20 percent of bribe-takers get transparent selection of judges to However now, according to a jail term in Ukraine; the others work in them, but also create a experts, lawmakers face the task of are let off, or merely have to pay a mechanism to protect them from fleshing out that structure of the small fine. political influences. anti-corruption courts with a sepa- “In 2015 the average sum of bribes “Future anti-corruption judges rate bill specifying how the judges taken by corrupt officials was Hr have to understand that practically are to be selected and the court 22,000 ($880), while the average every high-profile corruption case itself work. penalty for taking a bribe was Hr involves the interests of an oligarch, At stake is progress in the battle 19,000 ($760),” said Oryshchuk. “So so he or she will actually be coming against high-level corruption. The as we can see, taking bribes is profit- up against the interests of the ‘own- new courts will be a vital link in able in Ukraine.” ers of the country,’” Syroyid said. a chain that includes the National Deputy Speaker of the Ukrainian Anti-corruption Bureau and a Parliament Oksana Syroyid con- Import new judges? Special anti-corruption prosecutor, firmed the expert’s view, saying that Sobolev and Syroyid go as far as to experts say. many high-profile corruption cases claim that only foreign judges would Watchdogs and lawmakers only still go unpunished in Ukraine. be both safe and maximally inde- have until fall to do it, according to “Unfortunately, it is still more prof- pendent when working in the future Yehor Sobolev, the head of the Anti- itable to steal huge amounts in anti-corruption court. corruption Committee in the Rada. Ukraine,” said Syroid. “Here in Ukraine, we could create “The government gave us the sum- the first international anti-corruption mer to create a concept for the new Up against ‘the country’s court, which I think would be a very courts. In fall, we have to present a bill owners’ good beginning,” said Syroyid. in the Verkhovna Rada,” Sobolev said. Artem Sytnyk, the head of the Sobolev agreed, saying that some Ukrainian courts have been issu- NABU, admits that for a long time he of the biggest cases of Ukrainian ing soft sentences on those bribe-tak- was skeptical about creating anti-cor- corruption have already become ers who they convict, experts say. ruption courts, and thought that international problems. Speaking at a conference in Kyiv the government would do better to “I once met with a colleague from on June 30, Fedir Oryshchuk, the reform the current judicial system. Austria and he asked me why we chief editor of the website “First But his view changed after the export our corrupt people, meaning Instance,” said that in 2014-2015 no NABU started investigating Ukraine’s (Dmytro) Firtash,” Sobolev said. convicted bribe-takers were given top corruption schemes, and investi- Firtash, once a kingpin in Ukraine’s the maximum jail term of 12 years. gators came up against massive resis- lucrative and non-transparent gas Oryshchuk’s website monitors the tance from the courts. trade, moved to Vienna after the Register of Judgments of Ukraine For example, Solomyanskiy Court EuroMaidan Revolution in Ukraine together with corrupting watchdog of Kyiv in February banned NABU ousted the corrupt regime of for- Transparency International Ukraine. detectives from using Viber mes- mer President Viktor Yanukovych. In Furthermore, Ukrainian judg- sages sent by Odesa Portside Plant 2015 an Austrian court refused to es often come to different verdicts board member Olga Tkachenko as extradite Firtash to the United States, in very similar cases, Oryshchuk evidence in a corruption case involv- where he faces charges of bribery. said. ing close allies of President Petro The court ruled that the charges “For example, one judge sentenced Poroshenko. by U.S prosecutors were politically a corrupt official to five years in “The anti-corruption court is nec- motivated. prison for taking a Hr 5,000 bribe. essary not just because many judges “Unfortunately, such powerful Another judge passed a sentence in Ukraine are corrupt. A lot of judg- people can afford the best defense of six years in prison for a person es also are coming under political lawyers, and only experienced cor- who took a Hr 4,000 bribe,” said pressure,” said Sytnyk. ruption fighters, who previously suc- Oryshchuk. According to him, while creating ceeded in such cases -- specialists 18 National July 8, 2016 www.kyivpost.com

Girls walk by the ruins of the town hall of Toretsk, Donetsk Oblast, on July 5. Fire gutted the building during fighting to liberate the town from occupation by Russian-backed armed groups in July 2014. (Anastasia Vlasova) In war-torn front line city of Toretsk, no Top: A woman walks with a stroller past graffiti reading “Glory to Ukraine” daubbed on a building wall in Toretsk, Donetsk Oblast on July 5. Bottom: A boy jumps in a trampoline in the central square of Toretsk, change except name Donetsk Oblast on July 5. (Anastasia Vlasova)

Toretsk from page 1 of the Donetsk Republic.” In an inter- view with news website LB.ua given controlled city of Horlivka. in September 2015, Sleptsov said he The demonstrators were eventual- was forced to make the announce- ly dispersed, and eight were arrested. ment by armed men. Two have already been sentenced to Mayor since 1998, Sleptsov kept community work. his job because the authorities in Vyacheslav Abroskin, Donetsk Kyiv decided to cancel the local Oblast’s police chief, said many in election in Toretsk and several other the crowd were drunk and the ring- Donbas cities due to their proximity leaders would be brought to account to the frontl ine. The members of the for the disorder. But this was not city council also remained in place, the first anti-Ukrainian rally in this and still belong to the factions of the coal-mining city in Donetsk Oblast. Ukrainian Communist Party, which Similar protests against Ukrainian is now banned in Ukraine, and the troops were held in Toretsk in 2015, Party of Regions of ousted former and earlier this year. President Viktor Yanukovych, a party And in March 2015, anti-Ukrainian that is all but extinct nationally. riots took place in the nearby town “We failed to hold local elections of Kostyantynivka after a Ukrainian and hold to account any of those armored vehicle hit and killed an accused of separatism,” Grudkin said. eight-year old girl in a traffic acci- dent. In early 2015, rallies against Twenty percent support conscription were also held in the The mayor’s office is now located towns of Severodonetsk, Kramatorsk in a kindergarten, as the town hall and Bakhmut. was burned down during the fierce Toretsk was held by Russian- fighting for control of the city. Empty separatist forces from May to July plinths stand were once there were 2014. But almost two years after monuments to Dzerzhynsky and its liberation by Ukrainian troops, Soviet leader Vladimir Lenin. A woman feeds pigeons in the central square of Toretsk, Donetsk Oblast on July 5. (Anastasia Vlasova) anti-government sentiment here There’s still a mosaic of Moscow’s festers, as its residents still live Kremlin on the wall of the town’s under constant shelling. They are non-functioning central department also influenced by Russian TV pro- ners reading “Toretsk is Ukraine” They say the public events organized store, but Soviet stars on the steeples paganda, and dispirited by mass A change of names have been removed from the by their NGO, which now includes of the Kremlin towers have been unemployment. The most significant change in the streets by persons unknown. Andriy some 25 people, have often been covered with blue paint, and a small The mood is similar in other city is that it has been given a new Grudkin, an activist for Your New disrupted. They blame Toretsk Mayor Ukrainian flag has been painted towns and cities in Ukrainian gov- name. Formerly called Dzerzhynsk City, said he recently had an argu- Volodymyr Sleptsov and members of below the picture. ernment-controlled Donbas. - after Felix Dzerzhinsky, the first ment with a bus driver who placed a the city council for this, saying the On the other side of the building “We were freed only from the Soviet secret police chief – it is now poster reading “This is Dzerzhynsk, town officials are anti-Ukrainian. there is a large painted slogan “Glory armed groups, but this is not named after a local river, the Kryviy not Toretsk” in his bus. A YouTube video dated April 14, to Ukraine.” But scratched next to it enough,” said Volodymyr Yelets, the Torets. Yelets and Grudkin walk for a 2014, shows Sleptsov on the city’s’s in small letters is “Glory to the DNR” head of a local patriotic non-govern- But apparently, many residents while through the central park, look- main square announcing a decision – the name the Russian-backed ment organization called Your New don’t like the new name. ing for a quiet bench where they can of the city council to hold a separat- City, which was formed last summer. The “Toretsk” road signs and ban- sit and talk without being overheard. ist referendum “to decide the future more Toretsk on page 19 www.kyivpost.com July 8, 2016 National 19 Liberated Donbas frustrated by poverty, lack of change

Toretsk from page 18 armed groups have given to the part Protests against Ukrainian government of Donetsk Oblast where they have in Donbas in 2015-2016Kam'yanka seized control from the government. Dontsivka Markivka Yelets believes that no more than Novorozsosh Novopskov Skorodna 20 percent of the residents of Toretsk Ryb'yantseve

Pisky Kyrz'ke support Ukraine. He said this was Sychans'ke due to the absence of an indepen- Karayashnyk Proizhdzhe Bondarivka dent local press and the lack of Lyman Ukrainian TV broadcasts. Pidhorivka Chmryivka Lytvynivka Kalmykivka Semykozivka Ukrainian TV is available only Novoborove Starobil's'k Klymivka Yevsuh Holubivka Polovynkyne Bilovods'k via satellite and cable. The separat- Nyzhn'opokrovka Krasnorichens'ke Baidivka ist-controlled terrestrial broadcasting Shpotyne Nova Astrakhan' Chervonopopivka Shul'hynka Danylivka tower in the region, from which the Novokrasnyanka Novooleksandrivka Zhytlivka Malokhatka majority of the cash-strapped people Varvarivka Yepifanivkay Shtormove Kolyadivka Kreminna Horodyshche Stara Spivakivka of Toretsk receive TV signals, trans- Krasnyanka Kudryashivka Boroven'ky Severodonetsk Vovkodajeve mits only Russian and separatist TV Rubizhne Oleksiivka Verkhn'obohdanivka Pryvillya (February 2015) Severodonetsk Aidar-Mykolaivka Velyka Chernihivka channels. Novodruzhes'k Novoaidar Met'olkine Bilohorivka Novookhtyrka Syrotyne Dmytrivka Chuhynka The lack of access to Ukrainian TV Sievierodonetsk Airport Serebryanka Lysychans'k Chervonyi Zhovten' Voronove Bakhmutivka is a common problem for all front- Maloryazantseve Hrechyshkyne Borivs'ke Teple Sivers'k Raihorodka Shyrokyi Vovchoyarivka Petrivka line cities, as the regional TV trans- Myrna Dolyna Krasna Talivka Slovyansk Muratove Toshkivka Kryanivka Nyzhn'oteple mission tower near Kramatorsk was Tr'okhizbenka Hirs'ke Harasymivka Nyzhnje destroyed in fighting back in 2014. Kramatorsk Vrubivka Kryms'ke Kramatorsk Sokil'nyky Shchastya Stanytsia BakhmutZolote Staryi Aidar Luhanska On July 5, Ukrainian President Petro (February 2015) Kramatorsk Airport Soledar Donets'kyi Komyshuvakha Smile Vesela Hora Vil'khove (February 2015) Frunze Lopaskyne Poroshenko promised to build a new Pervomaisk Slov'yanoserbs'k Lyman Druzhkivka Popasna Valuiske Zhovte Kruta Hora Metalist Kirovs'k Bolotene tower in no more than two months. Oleksijevo- Zymohir'ya Irmino Chervonohvardiis'ke Oleksandrivs'k Druzhkivka Pokrovs'ke Poroshenko didn’t mention, how- Rodakove Novokyivka Artemivs'k Kalynove Stakhanov Mykolaivka Parkhomenko Chasiv Yar Lozivs'kyi Luhansk ever, that a TV tower actually was Lotykove Yuvileine Khyashchuvate Davydo-Mykil'ske Bryanka Bile Triots'ke Yur'ivka Kostyantynivka Mykhailivka constructed earlier this year to Almazna Rozkishne Novosvitlivka Kostyantynivka Bilorichens'kyi (March 2015) Myronivs'kyi Alchevs'k Kurdyumivka Artemivs'k Zaitseve replace the destroyed Kramatorsk Heorhiivka Velykyi Sukhodil Dzerzhyns'k Pereval's'k Lenina Novohanhivka Svitlodars'k Zoryns'k Yashchykove Kirove Luhans'ke Verhulivka Shcherbynivka Hol'mivs'kyi Illirya tower. The project was overseen by Komisarivka Luhansk International Airport Petrivka Sjevero-Hundorivs'kyi Maloivanivka Seleznivka Lutuhyne Molodohvardiis'k Bairachky Sukhodil's'k Artemove Debal'tseve Information Minister Yury Stets, an Uspenka Samsonivka Sjevernyi Toretsk Tsenral'nyi Adrianopil' Vuhlehirs'k Fedorivka Shterivka Pershozvanivka Simeikyne Uralo-Kavkaz Novhorods'ke Horlivka Horodyshche Malomykolaivka Talove ally of Poroshenko. However, the new (2015-2016) Utkyne Krasnodon Chornukhyne Kruhlyk Oleksandrivs'ke Novobakhmutivka Petrovs'ke Enhel'sove Izvaryne Keramik Karlo-Marksove Hirne Myrne tower has a low-power transmitter Olenivka Zaporizhzhya Orikhivka Vlasivka Ozeryanivka Bulavyns'k Hrushove Kam'yanka Verkhnya Krasnyanka Novooleksandrivka Ocheretyne Mykhailivka Korsun' Fashchivka Ivanivka Chervona Polyana Krasnodon with a range of no more than 30 Ol'khovatka Nikishyne Krasnyi Verkhn'otorets'ke Yenakijeve Yunokomunarivs'k Semenivka Kut Sofiivskyi kilometers. Toretsk is more than 40 Druzhne Maloorlivka Sadovo-Khrustal'nens'kyi Vakhrusheve Shchotove Panteleimonivka Kam'yane Zhdanivka Orlovo-Ivanivka Yasenivs'kyi Avdiivka Krasnyi Luch Velykokam'yanka Yasynuvata #MH17 Hrabove kilometers away from it. Tonenke Zemlyanky Krynychna Kirovs'ke Proletars'kyi Volodars'k Khrustal'ne Rozsypne Pelahiivka Klenovyi Komsomol's'kyi Donetsk Sergey Prokofiev Lisne Stizhkivs'ke Knyahynivka Spartak Nyzhnya Bokovo- Antratsyt Pavlivka International Airport Vil'khivka Sjeverne Platove Krynka Moskovs'ke Andriivka Verkhnii Chervonopartyzans'k Pervomais'ke Yakovlivka Mykhailivka Novodar'ivka Krasnyi Oktyabr Kontarne Miusynsk Nahol'chyk Pisky Hirne Zuivka Kripens'kyi Lenins'ke Krasnohorivka Shakhtars'k Hirnyk Khartsyz'k Snizhne Yesaulivka Tatsyne Roven'ky  Makiivka Serdyte Zalisne Shakhtars'ke “We’ve Torez Hostre Proletars'ke Zuhres Molodets'ke Lymanchuk Nyzhnii Dzerzhyns'kyi Sverdlovs'k Nykyforove Nahol'chyk Husel's'ke Mykolaivka Ternove Staromykhailivka Brazhyne Kalinins'kyi Kurakhove Voikove Shakhtne Maksymil'yanivka Hruz'ko- Pobieda Nahol'no-Tarasivka Triots'ko-Khartsyz'k Dyakove Donetsk Zoryans'ke Pervomais'ke Heorhiivka Mayak Manuilivka Shyroke Latysheve lived for Uspenivka Vysoke Pokrovka Biryukove Mar'inka Stepanivka Dmytrivka Avdot'ino Zelenopillya Oleksandrivka Bobrykove Temryuk llovais'k Savur-Mohyla Kostyantynivka Mar'yanivka Hruz'ko-Lomivka Marynivka Kozhevnya Bohoyavlenka Andriivka Chervona Zorya Mospyne Blahodatne Chervonyi Zhovten' Dolzhans'kyi Novomykhailivka Artemivka Novoborovytsi two years Vodyane Horbachevo-Mykhailivka Olenivka Kuteinykove Novoamvrosiivs'ke Vuhledar Novyi-Svit Biloyarivka Komunarivka Dokuchajevs'k Voikovs'kyi Volodymrivka Amvrosiivka under Starobesheve Uspenka Ol'hyns'ke Blahodatne Styla Novokaterynivka Novotroits'ke Rodnykove Lysyche Kolosky Komsomol's'kyi Ol'hynka Mokrojelanchyk Novohnativka information Mykolaivka Novozar'ivka Komsomol's'ke Valer'yanivka Volnovakha Novohnativka Ulyanivs'ke

Rybyns'ke Rozdol'ne Kumachove Trudivs'ke Novolaspa occu pation.” Starolaspa Svobodne Hlynka – Andriy Grudkin, Starohnativka Donskoye Cities controlled by Russian-backed Hranitne Kuznetsovo-Mykhailivka Andriivka separatists pro-Ukrainian activist Staromar'ivka Pervomais'ke Krasnivka Myrne Tel'manove Cities where there is fighting Svobodne Mykhailivka

Kyrylivka “So we’ve lived for two years under Kremenivka Chermalyk Prymors'ke Kal'chyk information occupation,” Grudkin Pavlopil' Klynkyne Cities controlled by Ukrainian government Makedonivka said. Volodars'ke Krasnoarmiis'ke Khomutove

Sartana Talakivka Rozy Lyuksemburh Kominternove 50 km (~31 miles) Sakhanka Strangers in town Staryi Krym Lebedyns'ke Novoazovs'k Bezimenne Obryv Vynohradne Watching her grandson ride a bicycle Mariupol International Airport Shyrokyne Original map - ZomBear on the main square of Toretsk, Iryna, Mariupol' Sjedove Convert to SVG - Marktaff 50, said she only watches Ukrainian Manhush Creative Commons Attribution-Share Alike 4.0 TV, by cable. She refused to give her Yalta last name, saying she feared for her ZONE OF CONFLICT: A map showing the area of military operations in the Donbas. The area under the control of the Ukrainian government has safety. While a supporter of Ukraine, remained virtually static since shortly after the Minsk II agreement was signed in February 2015. However, there have been several anti-government she is in no mood to celebrate the protests in areas held by Ukrainian forces, where people feel that the continued presence of the armed forces is fueling the conflict. second anniversary of the liberation of the city, on July 21. Indeed, the war is still going on, and not far away from here. in 2014. ries, everything is closed in the city,” square for what was a rare cultural are held, locals remember that as “Children wake up every night Another big problem is unemploy- said Iryna. “Some call us separatists, event in the area. Ukrainian troops liberated Sloviansk and cry,” Iryna said, describing the ment. Most town residents work at but those who supported the sepa- A much smaller crowd came to and Kramatorsk, the Russian-backed artillery shelling, which intensified in one of the four nearby coalmines, ratists left for Horlivka long ago, and see the head of state, President fighters withdrew to the regional cen- the last month. which are now operating at only we stayed here.” Poroshenko, in the neighboring town ter, the much larger city of Donetsk. Just 17 kilometers to the west of about 30 percent of their capacity. Later on July 5, the pro-Ukrainian of Sloviansk. The president presented The Russian-backed armed gangs the separatist-controlled town of The layoffs started long before the activists of Toretsk went to the medals to soldiers who liberated the are in control of it to this day, and Horlivka, Toretsk is often hit by shell- war broke out, but have intensified neighboring town of Kramatorsk city area two years ago, but Poroshenko there is little prospect of it being ing. The last big attack, on July 4, since. Iryna’s 35-year-old daughter, to watch a free show by Jamala, and the authorities he leads seem liberated any time soon. seriously damaged a local prison. Maryna, worked at one of the mines the Ukrainian winner of this year’s like strangers in this region. Kyiv Post staff writer Oleg Sukhov About 30 locals in Toretsk have been but is now on unpaid leave. Eurovision Song Contest. A big And as celebrations to mark contributed to this report. killed by shells since the war started “There is a war, there are no sala- crowd formed on Kramatorsk’s main the liberation of city in the area Classical music lovers can enjoy the outdoor music concert on the rooftop of Kyiv’s Roof club. For details visit kyivpost.com/lifestyle

LifestylePlay | Food | Entertainment | Sports | Culture | Music | Movies | Art | Community Events July 8, 2016 www.kyivpost.com Book Revieww

WITH NATALIYA TRACH For family fun, these [email protected] Attention tourists: are Kyiv’s best places Check out these guides before visiting Ukraine Ukraine has a lot to offer for tourists – beautiful landscapes, original architecture, interest- ing traditions and tasty food. However, it’s not always easy for foreigners to get around here, as few Ukrainians speak English. The Kyiv Post tracked down the best English language guide- books that will help in carefully planning a trip to the country and make travelling in Ukraine pleasant, safe and inexpensive. Different Kyiv This guide book is writ- ten in two languages – Ukrainian and English, and offers an alterna- tive look at Ukraine’s capital. It includes an exciting exploration of Kyiv’s most interesting places familiar only to locals. Those tired of well-trodden touristic places might take the guide- book’s advice, and go danc- ing at Hydropark retro disco- theque, enjoy treats in legendary Yaroslava café near Zoloti Vorota metro station, or walk along Peyzazhna alley, not far from A girl listens to the heartbeat of a rabbit during the celebration of veterinarian day in the Kyiv Zoo. The zoo can be a perfect option for a family day Andriyivsky Uzviz Street. The out with its 40-hectare site and exotic animals. Besides, Kyiv has various parks, aqua parks and rope parks for family fun. (UNIAN) book is divided into three parts, that include eight thematic routs, BY ANNA YAKUTENKO Zoos ers. Free entry for kids under five. Castle, the famous nineteenth-cen- numerous tips about various [email protected] Kyiv Zoo, located 16 minutes’ walk Outside the capital, there is anoth- tury Romanesque Revival palace in aspects of Kyiv’s transportation, from Kyiv Politekhnichny Institute er big zoo some 35 kilometers north Bavaria, a swimming pool, and a food, shopping and more, and There are plenty of family-friendly metro station, is the largest zoo in the of Kyiv near the village of Demydiv. range of cafes. Tickets for the zoo telephone numbers and/or the recreation options in the Kyiv and region, with about 280,000 visitors a Visitors to the “Dvanadtsyat misyat- and pool cost Hr 150, and an excur- locations of the city’s fast-food nearby towns besides great beaches year to its 40-hectare site, according to siv” (12 Months) zoo can see more sion costs Hr 250. There is a parking chains, shops, parks and public and parks. They include zoos, aqua its website. The zoo’s exhibits will thrill than 100 species in its 16 hectares area for visitors’ cars, and there is transport stops. parks, outdoor museums, rope parks children and adults alike, with tigers, of enclosures. The animals include a bus service (No. 355, Hr 17 fare) The guidebook’s peculiarity and more. hyenas, lions, monkeys, apes, snakes, arctic white wolves, buffalos, white from Heroyiv Dnipra metro in Kyiv is that it does not contain any The Kyiv Post takes a look at the scorpions and many other exotic ani- lions, grey bears, giraffes and rhinos. to the zoo. photos of the places in Kyiv Ukrainian capital’s best places for mals. Tickets cost Hr 50 for adults and The zoo has a restaurant built in the mentioned in the book. Instead family fun. Hr 25 for kids, students and pension- style of a miniature Neuschwanstein more Places on page 13 it abounds with funny illustra- tions of the city’s hidden gems Advertising: +380 44 591-7788 [email protected] Editorial staff: +380 44 591-3344 [email protected] Subscriptions: +380 44 591-7788 [email protected] which will only prompt curious tourists to explore the city more. The guidebook is free and may Want to advertise in Lifestyle? be downloaded at https://store. obreey.com/ukr/books/915746 or athttps://www.bookland.com/ukr/ books/915746 Ukraine. Travel Guide This colorful guidebook offers a detailed review of Ukraine’s central region – Kyiv, Vinnytsya, Cherkasy and Chernihiv Oblasts and gives a brief description of

Please call (+38) 044 591-7788 or mail [email protected] more Books on page 13 www.kyivpost.com July 8, 2016 Lifestyle 21 Useful guide books for planning a visit to Ukraine

Books from page 12 Hr 70 lishers produced a special update sists of eight chapters highlightening need –24 Litera on the recent political development interesting facts from Kyiv’s history, detailed maps the monuments, 11/61 LvaTolstogo St. after the dramatic events of the culture, places, food, nature, sport of the main architecture, (044) EuroMaidan Revolution in Ukraine and technologies. One of the book’s Ukrainian cit- nature and cul- 234-7508 in 2013-14. main advantages is that apart from ies, 70 illus- tural traditions The “Lonely Planet Ukraine” classical sights like Golden Gates trated motor- there. The plac- Lonely covers the whole of Ukraine, or People’s Friendship Arc, it offers car routes es of interest planet including occupied Crimea, and interesting places like “kachalka” through in each oblast Ukraine focuses on Kyiv, Lviv, Odesa, Yalta, in Hydropark, the famous Kyivska Ukraine and are indexed This guidebook Kamyanets-Podilsky, Chernihiv, Perepichka eatery or the Kyiv motor- information and divided is interesting Uman, Poltava as well as other cycle plant. The guidebook also has about the into categories both to those Ukrainian cities. interesting notes about world famous prices and depending who have The ebook of the fourth edition people from Kyiv – artist Kazimir working hours of on cultural already been costs £8.32, the paperback is £11.89 Malevich, scientist Borys Paton, and 300 hotels, motels and recreation importance. to Ukraine, and and may be ordered at http://shop. aircraft designer Igor Sikorsky. centers around the country. The The big advantage those who are lonelyplanet.com/ukraine/ukraine- However, “Awesome Kyiv” has book also offers colorful pictures of this guidebook is that the location only just plan- travel-guide-4/ several serious defects preventing it of 52 palaces, 78 fortresses, 257 of each cultural heritage spot is ning a trip to the country. It from being a truly useful guidebook museums, 255 churches and monas- marked on a map so that everybody contains lots of practical information Awesome – it lacks maps, addresses of the teries, all of which are worth visiting can use it and create their own tour- for planning a trip – it has over 48 Kyiv mentioned places as well as estimat- because of their beautiful architec- istic route around central Ukraine. local maps, many sights’ websites, The guide- ed prices and working hours of the ture and interesting history. Overall, the guidebook also pres- and public transportation operation book might city’s museums. Plus, travelers who prefer to take ents interesting tourist destinations hours. Ticket prices for local muse- be interest- The book may be ordered online holidays close to nature will find in 382 Ukrainian towns, villages and ums, the cost of hotel rooms and ing for those at http://book-ye.com.ua/shop/prod- extensive information about 20 cities and provides addresses and average prices at local restaurants travelers uct_13620.html Ukrainian national reserves in the telephone numbers of museums and café will help one estimate one’s seeking to Hr 166 book. and hotels that a curious holiday budget for a trip to Ukraine. discover Ye The book may be ordered online maker might want to pop into. The Those interested in Ukrainian tra- new places 63A Velyka Vasylkivska St. at http://book-ye.com.ua/shop/prod- book’s 157 color photographs show ditions will find interesting details and facts (044) 287-5088 uct_8998.html the diversity and beauty of the south about the country’s customs, history, different from those usual- Hr 319.87 of Ukraine. and art in the book. The guide- ly offered in average guidebooks. A motor car trip through Ye The book can be ordered online book offers even some information “Awesome Kyiv” offers a selection Ukraine 5 Spaska St. at http://bukva.ua/en/catalog/ about Ukraine’s complicated foreign of the most notable city places, This colorful book contains all the (044) 351-1338 browse/3617/1/245678 and domestic politics, as the pub- monuments and personalities. It con- information a car traveler might Best places for family fun in Kyiv

Places from page 12 Yanukovych’s dubiously earned two kids is available for Hr 240-360 The price for adults is Hr 70, and metro station (34b Moskovsky Ave). wealth. However, Mezhyhirya is now (see price details at aquapark-termi- Hr 50 for children. Besides taking to The park offers three types of roots Pyrohovo Park a rather popular spot for celebrating nal.com.ua). the rope routes, visitors can rent a of various levels of difficulty, a rope Pyrohovo, the outdoor folk muse- weddings and various holidays. quad bike, boat or wakeboard, play maze, and a playground for kids. um of Ukraine in Kyiv’s suburbs, Tickets cost Hr 50 for adults Rope Parks a table tennis and mini-golf, or test Prices start at Hr 40 for the easiest lets its visitors explore traditional and Hr 20 for children. An excur- For some active rest time, two rope their marksmanship at a shooting route and end at Hr 100 for access Ukrainian architecture from medie- sion to the Honka – the larg- parks in Kyiv offer their visitors to range. To get to Trukhaniv Island, to all the routes. A private guide is val times. The 150-hectare territory est building, where the ousted tackle various routes made of ropes. take a bus from Petrivka or Druzhby available for Hr 40. Apart from the has a lake and a small forest, and president used to live – costs One is X-Park on Trukhaniv Island, Narodiv metro stations. rope park, the mall has a rollerdrom, includes traditional buildings from Hr 200. To get to Mezhyhirya, which has routes at highs of from Another rope park is located in billiards, karting and an IMAX 3D various regions of Ukraine. Visitors take bus No. 792 from Heroyiv 1.5 to 12 meters above the ground. the Blockbuster mall near Petrivka cinema.  can enter some of the houses, which Dnipra metro station to the “Novi have 16-18th century furniture, and Petrivtsi” stop. The former presi- see collections of traditional clothes dent’s estate is about 10 minutes’ and houseware. The museum, which walk away. also has a traditional Ukrainian wooden church, hosts various folk Aqua Parks festivals and markets throughout Kyiv has several aqua parks, which the year. are always a great day out for the The entrance fee for Pyrohovo family, whatever the weather. One is Hr 30 for adults and Hr 15 for of the best is located in the Dream children, students and pensioners. Town shopping mall near Minska To get to Pyrohovo, take trolley- metro station (11b Obolonsky Ave). bus No. 11 from Lybidska metro Designed with a Jurassic Park movie station, private bus No. 576 from theme, the park has several pool Akademmistechko metro station, or bars, a food court and a relaxation private bus No. 496 from Lybidska zone with SPA and saunas. Prices metro. depend on the day of week and the hours spent in the aqua park, and Mezhyhirya vary from Hr 160 to Hr 220 for The residence of the ousted for- adults, Hr 120-175 for children (a list mer President Viktor Yanukovych of detail prices is available at aqua. was closed to the public until the dreamtown.ua). EuroMaidan protests forced him to Another aqua park, named flee to Russia in February 2014. Now Terminal, can be found in the city of his former estate is a park where Brovary, 28 kilometers to the east of visitors can picnic, explore the giant Kyiv. Aqua park has 11 water slides, a territory of 137 hectares, look at water pool with artificial waves, sau- animals from Yanukovych’s private nas, a pool for children and cafes. To zoo, and marvel at his lavishly but get to the aqua park take private bus tastelessly decorated luxury hous- No. 404 from Lisova metro station. es. The residence at Mezhyhirya is Prices range from Hr 170-180 for often referred to as the “Museum adults and Hr 140-150 for children. A of Corruption” as it symbolizes family ticket for one adult and one or 22 Entertainment Guide July 8, 2016 www.kyivpost.com

July 18 July 16 (AFP) (Courtesy)

Amy Winehouse tribute

Fans of the late British singer Amy Winehouse can enjoy a cover show at Classical concert on rooftop which Ukrainian jazz singer Mari Zhiginas will perform “Stronger Than Me,” “Rehab,” “Black To Black” and other hits. Ocean’s Symphony Orchestra will perform the music of Wolfgang Amadeus Mozart, Claude Debussy, Jacques “Mary Sings Amy” (Amy Winehouse tribute). July 16. 7 p.m. Offenbach, Antonio Vivaldi and Myroslav Skoryk during the opening of its fi rst season of outdoor classical music Caribbean Club (4 Symona Petlyury St.). Hr 80 – 380 concerts. Classical Music on the Rooftop (concert). July 18. 8 p.m. Roof (37 – 41 Sichovykh Striltsiv St.). Hr 150 – 350 July 16 July 23 - 24 Kurazh Bazar flea market (Mary/facebook) Pre-used accessories, footwear, books and clothes as well as brand new items from Ukrainian designers will be on offer to visitors to the

(Kurazh Bazar/facebook) (Kurazh regular Kurazh Bazar fl ea market in Kyiv. Kurazh Bazar fl ea market. July 23 - 24. 11 a.m. – 11 p.m. Platforma Art Factory (1 Bilomorska St.) Hr 50 Pub rock show Ukrainian rock band Mary, known for their hits “Kiss na Bis” (Kiss to Repeat) and “Merydiany” (Meridians) take to the stage of Kyiv’s Docker Pub. Mary (rock). July 16. 10 p.m. Docker Pub (25 Bohatyrska St.). Hr 75 July 16 – 17 -100

July 26 (Anastasia Vlasova) (Courtesy)

‘The Car Man’ (British Theater Live)

Modern English choreographer Matthew Bourne has reworked Georges Bizet’s famous opera “Carmen” and transplanted the action into the small American town of Harmony in the 1960s. The calm life of Harmony’s inhabitants is ruined by the arrival of a handsome stranger. Fueled by desire, the town dwellers are driven into spiral of greed, lust, betrayal and revenge. Street food festival “The Car Man” (British Theater Live). July 26. 7 p.m. Kyiv Cinema (19 Velyka Vasylkivska St.) Hr 150 This year Kyiv’s popular Street Food Festival will focus on Mediterranean cuisine. Besides seafood, festival visitors will be offered Italian risotto, French Escargot, traditional Greek gyros meat, and Moroccan couscous. Add a private beach area with cocktails and water slides, and this festival serves up a perfect weekend. Compiled by Nataliya Trach Street Food Festival. July 15. 3 p.m. July 16 – 17. 11 a.m. Platforma Art Factory (1 Bilomorska St.). Hr 50 www.kyivpost.com July 8, 2016 Employment 23

Contract title: Visibility Items for EUAM Ukraine VACANCY Publication reference: EuropeAid/138246/IH/SUP/UA ANNOUNCEMENT Kyiv Post is looking for a (EUAM-16-63) UNDP is looking for GRAPHIC DESIGNER EUAM Ukraine intends to award a supply contract for supply of highly qualified and visibility items in Ukraine. The tender dossier is available from the website of experienced Ukrainian EUAM Ukraine: http://euam-ukraine.eu and also from the EuropeAid website: professionals for 5 Ukraine https://webgate.ec.europa.eu/europeaid/online-services/index.cfm?do=publi. posts in the project welcome. RULE OF LAW AND More details at www.kyivpost.com/payment/vacancy/434 The deadline for submission of tenders is 8 August 2016 at 17:00h Kiev time. COMMUNITY JUSTICE FOR Please send your resumes and portfolios to 2QUUKDNG CFFKVKQPCN KPHQTOCVKQP QT ENCTKƒECVKQPUSWGUVKQPU UJCNN DG RWDNKUJGF CONFLICT-AFFECTED AREAS [email protected]. Resumes without portfolio on the EuropeAid website: https://webgate.ec.europa.eu/europeaid/online- OF UKRAINE: or work samples won’t be considered. services/index.cfm?do=publi.welcome and on the website of EUAM Ukraine: • Rule of Law and Access to http://euam-ukraine.eu. Justice Analyst, SC, SB4, Kramatorsk; • Rule of law and Community International Charitable Fund Community Security Analyst, SC, SB4, Wellbeing (ICF CW) Ministry of Health of Ukraine for Severodonetsk; www.community-wellbeing.org.ua the World Bank — funded Project • Community Mobilization Officer/ seeking candidates for the position of No. 8475-UA “Serving People, Community Justice Officer (3 posts), SC, SB3, Kramatorsk, Finance and Operations Administrator Improving Health” is looking Severodonetsk, Zhytomyr. DCUGFKP-[KXQHƒEG for qualified individual for the (QTSWCNKƒECVKQPUTGSWKTGFCPFLQD DEADLINE FOR APPLICATIONS IS description please refer to: http://dobrobut- position of 19 JULY 2016 JTQOCFQTIXCECPEKGUƒPCPEGQRGTCVKQPU Consultant for support and For detailed job descriptions administrator.html quality control for the work on and application for this and Please send CV, cover letter and list of 3 eHealth medical standards and other UNDP vacancies please references to Viktor Teres, viktor.teres@ legal acts visit: www.ua.undp.org/content/ cw.org.ua. ukraine/en/home/operations/ Applications accepted until the position is Details at: jobs/, REGISTER and complete ƒNNGF1PN[UJQTVNKUVGFECPFKFCVGUKPXKVGF the on-line application. for interviews. moz.gov.ua/ua/portal/announces/

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BY ANNA YAKUTENKO The band’s Michael Peter Balzary, [email protected] better known under his stage name Flea, and named the second-best The legendary U.S. rock band the Red bassist of all time by the Rolling Hot Chili Peppers was in Kyiv to give Stones magazine, tried his hand at a a concert on July 6, and its members Ukrainian folk string instrument, the took some time to explore the city. bandura.

American rock band Red Hot Chili Peppers performs at a show in Kyiv’s Olimpiyskiy Stadium on July 6. From left: bassist Michael Peter Balzary, better known by his stage name Flea, guitarist Josh Klinghoffer, vocalist Anthony Kiedis. (Ukrafoto)

Flea was filmed played the ban- middle, like the center string?” The was published on the Facebook page dura at the apartment of Ukrainian 60-string bandura is considered one of Tipichnyi Kyiv, which posts local model Nadia Shapoval, where he of the toughest instruments in the news and user-generated content. and other band members were hang- world to learn to play. The Red Hot Chili Peppers ing out on July 4. Shapoval posted an Meanwhile, Red Hot Chili Peppers were the headliners at the U-Park Pagan ritual Instagram video of Flea tackling the front man Anthony Kiedis was spot- music festival held on July 6 at A couple jump over a fire during the traditional Ivana Kupala holiday multi-stringed instrument. ted walking down Andryivsky Uzviz, the Olympiyskiy Stadium in Kyiv, at Kyiv’s Pyrohovo outdoor Museum of Folk Architecture and Life The musician seemed confused by one of Kyiv’s top tourist attractions, along with The Kills, Nothing But of Ukraine on July 6. The ritual harks back to Ukraine’s pagan past. the sheer number of the instrument’s on July 5. Thieves and Ukrainian band The (Volodymyr Petrov) strings, asking “Which one is the A photo of the star on the street Hardkiss. 