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Little Love for Kyiv in Front Line Donbas City Wracked by Warfare and Poverty

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Little Love for Kyiv in Front Line Donbas City Wracked by Warfare and Poverty #10 is out! Ukraine’s $11.4 billion bank robbery The crookscrooks got got away. away. The The people people stay pay 21st Year SUBSCRIBE TO KYIV POST ONLINE. WWW.KYIVPOST.COM 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.
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