Ukrainian Government Relations

Message from the Chairman

Despite the difficulties in 2008, the Chamber worked diligently to move forward our Policy Agenda by working with a whole host of Public Councils and Working Groups under the Cabinet of Ministers and the Verkhovna Rada. Our Policy Team, our Chamber Committees, and a number of issue- specific Working Groups continued the earlier positive trend of growing in size and strength in 2008. We look forward to continuing this positive trend in 2009 and beyond for the benefit of Ukraine and our Membership. I would like to thank the many Members, who have taken an active role in our Committees and Working groups, so as to ensure that the information, opinions, and advice, which we provide to policy makers, are professional and relevant. Without our Members' active involvement, the Chamber's lobbying and advocacy initiatives would not be so successful. The Chamber has also aggressively expanded the value-added benefits that we provide to our Members, in addition to advocacy and lobbying, in the spheres of Networking and Information Dissemination through a wide variety of new Dear Chamber Members, targeted events and publications.

2008 came to a close with a global financial crisis, which will I would also like to take a moment to thank the 2008 Board impact Ukraine and our members in the short, medium and of Directors, who were instrumental in working with me and long terms: the year started out positively, with Ukraine the Chamber's administrative team to ensure the continued reaching some major milestones, such as WTO Membership success of the Chamber. Their wise counsel, hard work, and and the passage of the long-awaited Joint Stock Company dedication were pivotal in providing strategic direction to Law - two of the many issues that the Chamber has been the Chamber, and we are collectively proud of the results. At working on over the years for the benefit of our Members the close of 2008, the American Chamber of Commerce and Ukraine. Unfortunately, much of the work done by the Board included: Executive Committee: James Hitch, Baker & Chamber and the Ukrainian government in the first part of McKenzie - Chairman; Boris Krasnyansky, Pricewaterhouse- the year is currently being overshadowed by the problems Coopers - Vice Chairman; George Logush, Kraft Foods in the financial markets. Nevertheless, the Chamber quickly Ukraina - Vice Chairman; Nadir Shaikh, Citibank (Ukraine) - adapted to this new reality and provided access, informa- Treasurer; and Douglas Hill, Coca-Cola Ukraine - Secretary; tion, and engagement on behalf of our Members to key Rob Shantz, KPMG - Tax Advisor; Directors: Patrick van decision makers, who have the responsibility to manage the Daele, Shell Ukraine Exploration and Production; Axel turmoil. The Chamber will continue to focus in 2009 on Hluchy, METRO Cash & Carry Ukraine Ltd.; Andre Kuusvek, adding value to our Membership to help them weather the European Bank for Reconstruction and Development; storm. We look forward to continuing to be a reliable part- Sotirios Marinidis, Procter and Gamble Ukraine; Jacques ner to the internationally oriented investors whom the Mounier, Calyon Bank Ukraine; Andrzej Rozycki, Cargill; and Chamber represents. Myron Wasylyk, The PBN Company.

Throughout 2008, the Chamber confronted and embraced Despite the tumultuous times, both the Chamber and these new challenges by strengthening our Policy Team and Ukraine continue to have great potential for further growth our Committees, and by tapping into the Chamber's long- and development. We trust that the synergies and benefits, standing relationships with key decision makers, in order to which both can offer to our current and future Membership, work on those issues that are of major concern to our will continue to unfold in 2009. Membership. In the same vein, the Chamber further developed numerous segmented Networking events, allowing our With kind regards, Membership to tap into the wealth of experience and opportunities that their fellow Members of the Chamber also bring James T. Hitch to the table. The Chamber has focused in further developing Chairman of the Board a well-rounded offering of benefits and services by being proactive, innovative, and customer-service-oriented. Message from the President

Dear Chamber Members,

The end of 2008 ushered in a global financial crisis that was coupled with ongoing political turmoil, which left the Chamber's Membership unsure of what the future holds. This uncertainty has raised the importance of the role that the American Chamber of Commerce in Ukraine plays as a "Key to your Success". As we look back on a successful year for both the Chamber and Ukraine, the unfortunate problems that arose at the end of 2008, whose implications are still unfolding as I pen this address, are yet to be fully under- stood.

Despite this uncertainty, we at the Chamber are focusing our efforts on ensuring that the organization remains relevant and value-added during these difficult times by being nimble and adjusting to the needs of our Membership as the business, investment, and political landscape changes. We are proud of what we accomplished in 2008, and those accomplishments are presented in the subsequent pages of our Annual report. We will continue to focus on the future, doing what we can to help our Members to weather the storm, to identify new opportunities, to protect their interests through focused lobbying and advocacy efforts, to provide quality segmented Networking opportunities, as well as, to serve as strong information platform helping all of our Members to succeed. The road ahead will be challenging, but, with the engagement of the qualified staff of the Chamber and the vast Chamber Membership, we will focus on the future and look forward to reveling in the successes of the Chamber and each of our Members.

This 2008 Annual report is designed to provide you with a brief snapshot of the major activities and accomplishments of your Chamber over the last year. We look forward to working with our Membership in 2009 and beyond, as we all strive to succeed in this challenging environment.

Sincerely,

Jorge Zukoski President 2008 CONTENTS

5 The Chamber in Ukraine

6 2008 Membership Satisfaction Survey

7 Chamber Official Service Providers 2008

11 Chamber of Commerce Calendar of Events 2008

16 Chamber Success Stories in 2008

22 Chamber Innovations in 2008

28 Chamber External Communication Activities

31 Chamber Advocacy and Lobbying Activities

39 Chamber Committees and Working Groups

65 Chamber Networking Events & Social Activities

75 Chamber Publications

78 Chamber Member 2 Member Discount Program

83 Chamber Gourmet Club

84 New Chamber Members in 2008 THE CHAMBER IN UKRAINE

The American Chamber of Commerce in Ukraine ("Cham- ve Member of a wide variety of Public Councils within the ber") is among the most active and effective non-govern- Ukrainian Ministries and State Committees. ment, non-profit business organizations which operates in Ukraine since 1992. One of the Chamber's principal activiti- Many of the value-added Chamber Membership benefits es is to represent the foreign investment community as well offered to the Members and embassy partners are the fol- as to facilitate the entrance of potential new investors into lowing: effective and proactive Advocacy and Lobbying Activi- this market. The Chamber advocates on behalf of the Mem- ties; access and involvement in Chamber Committees and bership not only to the Ukrainian government, but also to all Working Groups; value added contacts and stratified business other governments, which are economic partners of Ukrai- Networking; informative publications; wide variety of socially ne, on matters of trade, commerce, and economic reform. oriented and family focused events and activities; streamlined The Member organizations of the Chamber represent capi- Express Business Visa Services; a money saving Member 2 tal from over 50 nations across the globe including Europe, Member Discount Program; continuously expanding Gour- North America, Asia, Russia and Ukraine and are the largest met Club, etc. strategic and institutional investors operating in Ukraine who have committed a majority of the foreign direct invest- As an organization constantly striving to maintain its innovati- ment into this market and directly employ hundreds of ve edge and respond to the needs of the business community thousands of Ukrainians providing them with exposure to the Chamber represents, the Chamber was working on further international best practices and the opportunity to develop improvement of its communications tools (new project with into real leading managers. Our Member companies that Business Ukraine Magazine, new format of the Weekly Bulle- bring international expertise and business knowledge to tin, Knowledge Series seminars, new Committees and Working Ukraine are among the largest taxpayers in Ukraine and stri- Groups) that are designed to provide up-to-date informative ve to be good corporate citizens. materials and reports to Members, obtain new possibilities for professional growth as well as additional exposure to the bro- The Chamber is an active and engaged Member of the ader global community interested in doing business in Ukrai- Foreign Investment Advisory Council under the President of ne. The Chamber website - www.chamber.ua - and accompa- Ukraine, a Member of the Investors Council under the Prime nying electronic publications - Weekly Bulletin, Advocacy and Minister of Ukraine as well as participant of it's Working Committee Update, and Chamber News - are interactive with Groups. Also, the Chamber continues to serve as a proacti- new modern easy to use navigation and design elements.

5 2008 MEMBERSHIP SATISFACTION SURVEY

In order to obtain a better understanding of the needs of its Membership the American Chamber of Commerce in Ukraine, in 1. Overall Satisfaction cooperation with Chamber Member Hudson Global Resources, imple- of the Chamber Members mented a 2008 Chamber Membership Satisfaction Survey.

The Survey's primary objective was to provide relevant information that would assist the Chamber to more fully address the needs and expectations of the Membership by providing concrete and actionable data. The information obtained from the Survey was then utilized by the Board of Directors and Administrative Team during the strategic planning process whereby the Mission, Vision and Principles were adjusted to ensure the Chamber's strategic direction matches the needs and expectations of the Membership in this rapidly changing environment. The vast majority (87%) of the Chamber The Chamber was pleased that well over 1000 Members responded to Members (both CEOs and employees of Member the survey providing a statistically relevant sample size enabling the companies) are happy with the services offered Chamber Board of Directors Strategic Planning Committee to receive by the Chamber as Membership benefits. a clear overview of the perception of the Chamber among the Membership. 2. CEO: Satisfaction with the Chamber Operations in Ukraine Overall, the Chamber performed well in the eyes of the Membership with some brief snapshots including: Adding Value to Your Organization The majority of Member companies believe that the Chamber adds value to their business. Most of the Members' expectations are met by the Chamber operations. The vast majority (87%) of the Chamber Members (both CEOs and employees of Member companies) are happy with the services offered by the Chamber as Membership benefits. The vast majority (99%) of the Chamber Members (both CEOs and employees of Member companies) are ready to recommend the The majority (94%) of CEOs of Member Chamber as a reliable business partner to the Ukrainian business companies are satisfied that the Chamber community. adds value to their business. Members indicated that the Chamber Member 2 Member Discount Card Program & Gourmet Club, Business Networking 3. CEO: Level of Satisfaction with events with government officials and business leaders, and the Chamber Mission, Vision & Captains of Industry Networking events for CEOs are very impor- Strategic Development in Ukraine tant and highly rated products and services of the Chamber, as well as electronic publications (namely Weekly Bulletin and Relevance of the Chamber Mission Website (www.chamber.ua) and printed publications (namely for Operations in Ukraine Annual Membership Directory).

Among areas that have been identified for further development in 2009 include: strengthening of Advocacy and Lobbying activities utilizing different mechanisms and tools tailored to the rapidly changing political landscape; promotion of Corporate Social Responsibility (although the Survey took place before the Chamber established the Flood Relief Fund in which many Member Companies participated and highlighted their good corporate citizenship by generously reaching out to help those in need). In the opinion of a majority of respondents (97%) the Chamber Mission, Vision and Strategic More information regarding the 2008 Membership Satisfaction Development is relevant to the Ukrainian Survey is available on the Chamber's web-site www.chamber.ua and business environment. during the Members Appreciation Reception in January 2009.

6 CHAMBER OFFICIAL SERVICE PROVIDERS 2008 The American Chamber of Commerce has been pleased to extend the number of Official Service Provides in 2008, ensuring better quality services provided to the Membership. All of the Member Companies involved in Official Service Providers Program are providing the Chamber with goods and services free of charge. The Chamber is thankful to its Partners that make Chamber operation in Ukraine successful.

AeroSvit Ukrainian Airlines Aerosvit Airlines was founded in October 1994 in Kiev. It became one of the first Ukrainian airlines providing competitive high-level service at the international aviation markets, operating the western fleet and guaranteeing an advanced air safety standards. Starting from the first 58A, Tarasa Shevchenka bulv. flights in 1994, Aerosvit set up its priorities: flight safety, regularity, immaculate service. There Kyiv 01032 are achieved by means of operating the Boeing fleet, which has very positive reputation in the Phone: +38 (044) 490-34-90 international operations. The aircraft maintenance is provided by the Airlines personnel certifi- flights information cated by JAR 145 (engineers and mechanics). Aerosvit Airlines operates their flights to 70 inter- E-mail: [email protected] nal and international airlines, including 6 long distance to New York, Toronto, Beijing, Shanghai, Website: www.aerosvit.com Delhi and Bangkok. Aktif Ileti Aktif Ileti is a licensed post operator in Ukraine that provides high quality delivery & courier services. Aktif Ileti aims to be an example of a world class company with dedication to and understanding of quality service and the importance to customer relations. By consistently 34G, Vorovskogo vul. developing new products, marketing strategies and services Aktif Ileti aims to be at the top of Kyiv 01054 Ukraine's market understanding customers' expectations, responding to our customers' expec- Phone: +38 (044) 496-2504 tations. Aktif Ileti offers delivery services to the Chamber to ensure successful communication Fax: +38 (044) 496-2504 with Members. Website: www.aktif.com.ua

Audit firm "RSM APiK" Audit Company "APiK RSM" was created in July 1993. During the period of company's activity our specialists have provided audit services to more than 400 companies and 65 banks. APiK is one of the leading audit companies in Ukraine. The Company's main areas of activity are the provision of various types of audit and related services to commercial banks. In addition APiK 37/19, Donetska vul., 1 Floor provides specialized consulting services. "APiK RSM" Company is the only audit company in Kyiv 03151 Ukraine, which has become a member of Association of Ukrainian Banks. APiK has lengthy Phone: +38 (044) 501-5934 experience of work with large joint-stock companies and state enterprises specializing in the Fax: +38 (044) 244-7662 E-mail: [email protected] most important areas of the economy (fuel and energy complex, technical connection and Website: www.apik.com.ua telecommunication, insurance business, and the like.). APiK has also developed extensive contacts with 100% foreign-owned companies and banks. Astelit LLC LLC 'Astelit' is a company operating the GSM business on the Ukrainian market under the brand life:) since January 2005. life:) values are in being passionate for better, delivering results, keeping our customers at heart and team spirit. The mobile operator life:) provides its subscribers with high-quality and innovative services of mobile communications in the GSM-1800 and GSM 900 standards. Over a short period of three years and a half, the operator succeeded in building a national network, which covers the territory with 92% of population. Mandarin Plaza, 4, Baseyna vul., 7 Floor life:) — is a market leader in implementing innovative services. Within three and a half years Kyiv 01004 that it has been on the market the operator has presented over 150 value-added services, Phone: +38 (044) 233-3131 over 50 of which are brand new for Ukraine. Among them are Meloring, Voice SMS, Push- Fax: +38 (044) 233-3062 To-Talk, Mobile TV, and many others as well as unique package of interactive services E-mail: [email protected] lifebox that has united all the value-added services by a single convenient access. life:) provides roaming opportunities in 207 countries via 500 roaming partners. 7 CHAMBER OFFICIAL SERVICE PROVIDERS 2008 continued...

Coca-Cola Beverages Ukraine Limited Coca-Cola first began operations in Ukraine in 1992, immediately after the announcement of independence. At the time of its founding, Coca-Cola Beverages Ukraine was the country's first sizeable international investor. Over the years it has continued to show its confidence in the market opportunities through further investment in the marketplace and the company's brands and today, the total investment in the Ukraine exceeds USD270 million. 51st km of St. Petersburg Shose , "Coca-Cola Beverages Ukraine Limited" is an enterprise with 100% foreign capital. Our #403 Velyka Dymerka 07400 Company is part of the Coca-Cola HBC Group which operates across 26 countries and is the Phone: +38 (044) 490-0707 Fax: +38 (044) 490-0701 second largest Coca-Cola bottler. The Chamber values continuous support of Coca-Cola E-mail: [email protected] throughout the years. Coca-Cola products are always available at American Chamber of Commerce office for the guests, visitors and Committee Meetings and traditionally at Chamber events. DenzaWorkspace Founded in 2001, DenzaWorkspace is a well-known Ukrainian company with foreign investments. Currently DenzaWorkspace is quickly enlarging its presence in the ergonomic office furniture market segment. The core line of its business is creation of professional corporate 5, Dymytrova vul., environment for the clients using the latest products and trends in office environment Block 10A, 1 Floor design. DenzaWorkspace's many offerings help ensure that individuals who spend long Kyiv 03150 hours each day at work, do so in maximum comfort and with minimal long-term health Phone: +38 (044) 495-2601 risks. DenzaWork-space helped to created the American Chamber of Commerce's office Fax: +38 (044) 495-2602 environment that inspires and fosters productivity. DenzaWorkspace provides a compre- E-mail: [email protected] hensive portfolio of services, from relocation to interior design and fit out, space planning Website: www.denza.com.ua to asset management. EuroLeasing Euro Leasing Company acts in the format of the transport financial supermarket and provides the following services: operating and financial leasing of the passenger and commercial cars, trucks and specialized transport; rental service of cars with or without driver; pre- delivery cars and replacement cars; fleet-management - administration of the clients' fleet. Unique innovative products of Euro Leasing: Fleet Online - a program that allows the clients through an ordinary web-browser to receive online all the necessary information as to their own fleet, optimizing expenses, time and assists in controlling and managing the fleet; 67/3, Peremohy prosp., 2 Floor Credit fuel cards with and without administration. Kyiv 03062 Phone: +38 (044) 490-1087 Euro Leasing gives much consideration to the country's economic development and active- Fax: +38 (044) 490-1087 ly cooperates with the enterprises that promote improvements of economical environment E-mail: [email protected] conditions. Thus, Euro Leasing is a member of the Ukrainian Lessor Union Association and Website: www.lease.com.ua American Chamber of Commerce in Ukraine. Taking into consideration the economic and legal environment the company suggests modern adequate decisions in the financial service sphere. Golden Telecom Golden Telecom LLC (hereinafter "Golden Telecom" or "The Company") is a division of Golden Telecom Inc. (NASDAQ: GLDN) - a leading Ukrainian provider of telecommunication services for business and private customers and telecommunication carriers. Golden Telecom addresses its services to various segments of customers, offering a specific set of services for every segment. For business and corporate clients the Company offers: complex telecommunication solutions of any level of complexity; digital telephone connection (ISDN, Khreshchatyk Plaza digital networks "value added services"); call-centre services; broadband Internet access; 19A, Khreshchatyk vul., 3 Floor Kyiv 01001 local, national and international data services (Dedicated Private Lines, Frame Relay and MPLS Phone: +38 (044) 490-0090 (Multi-Protocol Label Switching) services); data-centre services; corporate networks (Ukraine, Fax: +38 (044) 490-0070 CIS and worldwide); Virtual Private Networks (VPN); Special services for banks and other E-mail: [email protected] financial institutions; GSM-1800 mobile services. Large corporations as well as small and Website: www.goldentele.com medium enterprises are among the business customers of Golden Telecom. 8 CHAMBER OFFICIAL SERVICE PROVIDERS 2008 continued...

Hudson Hudson (NASDAQ: HHGP) is a leading provider of permanent recruitment, contract professionals, talent management and complete outsourced solutions worldwide, with approxi- mately 3,600 employees serving clients and candidates in more than 20 countries.

Hudson helps companies achieve greater organizational performance by attracting, selecting, engaging and developing the best and brightest talent. From well-crafted recruiting plans to cut- 77A, Velyka Vasylkivska vul., 8 Floor ting-edge assessment and selection methodologies to employee development tools, Hudson Kyiv 03150 has the expert resources and experience to translate human capital strategies into practical Phone: +38 (044) 490-2916 actions and measurable results. Fax: +38 (044) 490-2919 E-mail: [email protected] Website: www.hudson.com Ukrainian operations were established in 1996 and became one of the major human capital management consultancies on the market. Our highly professional team combines western approach to business with Ukrainian culture and experience working on the market. Today we have 40 full-time employees and a number of part-time subcontractors for various projects.

Interfax-Ukraine news agency The Interfax-Ukraine News Agency - a company belonging to the international group Interfax Information Services - has been a provider of information in the political and economic information market of Ukraine since 1992. Over this time, the agency has earned the 8/5A, Reytarska vul. reputation of being the most authoritative and competent supplier of timely and objective Kyiv 01034 information, in the format of high-quality and popular news products. News reports from Phone: +38 (044) 270-7465 Ukraine are available to clients in almost every country of the world through the distribu- Fax: +38 (044) 270-6575 tion channels of Interfax International. Currently the agency markets 45 information prod- E-mail: [email protected] Website: www.interfax.kiev.ua ucts on political and economic subjects in three languages (Ukrainian, Russian and English).

KLS Ltd KLS was founded by a group of professionals who gained considerable experience in moving industry. It was created with the aim to render moving services for international and Ukrainian companies/ organizations as well as for individuals. Our moving services include: international moving of household goods and personal belongings, moving of offices, moving of residences and apartments. Our mission is to grant the best quality moving services and be a consultant to our customers in terms of any questions related to relocation. Our 3, Svyatoshinska vul. main task is to assist foreign community in moving of their personal belongings to Ukraine Kyiv 03115 and provide them with moving services while leaving Ukraine. Once using our services, our Phone: +38 (044) 502-3929 customers remain with us for many years always feeling friendly atmosphere, customer- Fax: +38 (044) 502-3929 driven approach, flexible management, and ability to correspond to high quality moving E-mail: [email protected] provider. We are proud that among our customers there are many embassies, internation- Website: www.kls.kiev.ua al organizations, famous Ukrainian companies. Moving is a part of our customers' life and we try to make this part as pleasant for our customers as possible. We share with our customers all the best what the moving gives: happiness from having the dear personal things in any country, joy from quick and smooth moving, confidence, comfort, respect.

Microsoft Ukraine, LLC Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential. In 2003 Microsoft opened a regional 75, Zhylyanska vul., 4 Floor office in Ukraine aimed at developing the software market, promoting Microsoft products, Kyiv 01032 and providing partner and customer support, as well as introducing and localizing the newest Phone: +38 (044) 496-0310 technologies and implementing social initiatives in Ukraine and Belarus. Microsoft is the Fax: +38 (044) 496-0317 American Chamber of Commerce Official Business Productivity Provider, ensuring that the E-mail: [email protected] Chamber and its members can benefit from the latest Microsoft technologies and solutions. Website: www.microsoft.com/ukraine 9 CHAMBER OFFICIAL SERVICE PROVIDERS 2008 continued...

MTS (Ukrainian Mobile Communications CJSC) MTS Ukraine (Ukrainian Mobile Communications) is the first mobile communications company in Ukraine operating at the market since 1992. The first call from a mobile phone was made through the company's network on July 1, 1993. The MTS Ukraine network covers more than 97% of Ukraine territory where 99% of the population live. The company serves more than 18,60 million subscribers. It owns licenses for providing mobile (GSM 900/1800, CDMA-450), fixed, toll, and long-distance communication services, and provides international roaming services on five continents. Today MTS has developed into an integrated telecommunications 15, Leipzigska vul. company providing a full scope of services, including such innovative and exclusive products Kyiv 01015 as Blackberry, mobile and fixed broadband Internet access, convergence services based on Phone: +38 (044) 230-0257 combination of fixed and mobile technologies. MTS Ukraine is a wholly owned subsidiary of Fax: +38 (044) 230-0256 Mobile Telesystems (MTS) (NYSE: MBT), the largest mobile operator in the CIS countries. E-mail: [email protected] Together with its subsidiaries MTS provides services to more than 91 million subscribers in 6 Website: www.mts.com.ua countries: Russia, Ukraine, Belarus, Uzbekistan, Turkmenistan and Armenia. In 2008 MTS was the only CIS-origine brand listed in the BRANDZ™ Top 100 Most Powerful Global Brands published by Financial Times. The Company's shares are listed on the New York Stock Exchange since June, 2000. MTS proudly provides the American Chamber of Commerce with high quality mobile communications solutions.

Ukraine International Airlines (UIA) Ukraine International Airlines (UIA) was founded in November 1992 and is a joint venture providing passenger and cargo air transportation. UIA highest priorities are safe and reliable air transportation as well as high quality standards of service and comfort for all passengers. Ukraine International Airlines links Ukraine with almost all main cities of Europe and onward destinations worldwide by operating 250 scheduled flights per week. UIA provides direct passenger and cargo services to/from Amsterdam, Barcelona, Berlin, Brussels, Dubai, 201-203, Kharkivske Shose Frankfurt, Helsinki, Lisbon, London, Kuwait, Madrid, Milan, Paris, Rome, Tbilisi, Vienna, Kyiv 02121 Zurich. Domestic services are available to Lviv and Simferopol. Due to well developed part- Phone: +38 (044) 581-5656 nership links UIA offers for the passengers same day connections from Ukraine to more Fax: +38 (044) 230-8866 E-mail: [email protected] than 3000 destinations worldwide via main European hubs. UIA tickets are being sold in Website: www.flyUIA.com more than 70 countries worldwide, and there are more than 40 representative offices in Ukraine and abroad. UIA is a registered member of Member2Member Discount Card Program and offers discounts for the card holders. WorldAPP, Inc. WorldAPP is a provider of web-based data collection solutions that enable enterprises to collect, manage and leverage data flows within their organizations and with their customers and suppliers. The Company's products are delivered under a Software-as-a-Service (SaaS) model. In Summer 2008 The American Chamber of Commerce in Ukraine has chosen WorldAPP as an official data collection and data management partner. The American Chamber of Commerce in Ukraine uses Key Survey web-based software to achieve the fol- 4/8, Kurenivsky prov., 2 Floor Kyiv 04073 lowing goals: conducting member satisfaction surveys, gathering feedback regarding the Phone: +38 (044) 379-1430 events, and for many other survey purposes. The main WorldAPP's benefits are: delivering Fax: +38 (044) 379-1430 all the functionality necessary to automate the online data collection process; providing its E-mail: [email protected] customers with E-mail, Live Chat and Phone support; ability to work with no software to Website: www.worldapp.com install. WorldAPP is a registered member of Member2Member Discount Card Program and offers discounts for the card holders.

Yug Contract Co., Ltd. Yug Contract is the leading Ukrainian distribution company of consumer electronic goods and merchandise. Yug Contract provides distribution service for many leading and well - known companies such as: Apple, Canon, Ñasio, Ergo, Fuji, JVC, Kingston, KIS, Kodak, LG, Lowepro, 1, Dorogozhytska vul., 3 Floor Mitsubishi, Motorola, Nikon, Nokia, Noritsu, Olympus, P&G (Duracell), Panasonic, Pentax, Kyiv 04112 Philips, PQI, Samsung, Sony, TDK, Toshiba, TP-Link, Transcend and many others. Yug Contract Phone +38 (044) 247-6704 performs all distribution functions (delivering, stocking, promoting, service support, train- Fax +38 (044) 537-4819 ing etc.) to all sales channels in Ukraine ( Electronic Chain stores, GSM mobile chain shops, E-mail: [email protected] mass retail, e-commerce, Photoshop (minilab), FMCG chains and even open street markets). Website: www.yugcontract.ua 10 CHAMBER OF COMMERCE CALENDAR OF EVENTS 2008

JANUARY January 9th Toastmasters Club Meeting January 15th Chamber English Language Movie Premiere 'National Treasure: Book of Secrets' January 16th Toastmasters Club Meeting January 17th Chamber Traditional 'Welcome Back' Business Networking Cocktail at Arizona BBQ January 17th Tax Committee Meeting January 21st Banking & Financial Services Committee Meeting January 22nd Agricultural Committee Meeting January 23rd Chamber 'In-Focus' Meeting on EURO 2012 with Mrs. Oksana Slyusarenko, Deputy Minister of Economy of Ukraine January 23rd Real Estate Committee Meeting January 23rd Toastmasters Club Meeting January 25th Travel and Tourism Committee Meeting January 28th Telecom Committee Meeting January 29th Chamber English Language Movie Premiere 'Charlie Wilson's War' January 30th Healthcare Committee Meeting January 30th Toastmasters Club Meeting January 31st Chamber Members Appreciation Reception and Discount Card Presentation FEBRUARY

February 4th Chamber Business Luncheon with the Representatives of the State Tax Administration February 5th Chamber YP-Net 'Mardi Gras' Celebration February 6th Toastmasters Club Meeting February 12th Toastmasters Club Meeting February 14th Chamber Silver Card Event - 2nd Amateur Photo Exhibition February 15th Customs Policy Working Group Meeting February 16th Chamber Special Family Event — Back Stage Pass to the Opera Theater February 18th Corporate Social Responsibility Committee Meeting February 19th HR Committee Meeting February 19th Agricultural Committee Meeting February 20th 'Detect Fraud and Reduce Risks by Knowing Your Customer: Your Ticket to Enhanced Due Diligence' Seminar by LexisNexis February 20th Chamber English Language Movie Premiere 'Definitely, Maybe' February 20th Toastmasters Club Meeting February 21st LexisNexis Academic: 'Empower Students to Become Independent, Sophisticated Researchers' February 21st Joint Legal and Tax Committee Meeting February 21st Chamber Business Networking Cocktail at Monaco Restaurant February 25th Open Tax Committee Meeting with Mr. Serhiy Cherkashkin, Deputy Head of the State Tax Administration February 25th Banking & Financial Services Committee Meeting February 26th Travel and Tourism Committee Meeting February 27th IPR Committee Meeting February 27th Toastmasters Club Meeting February 28th Business Management Education and Training Committee Meeting February 28th Legal Committee Meeting February 29th Chamber Special Family Event — Leap Day Celebration

11 CHAMBER OF COMMERCE CALENDAR OF EVENTS 2008 continued...

MARCH

March 3rd Telecom Committee Meeting March 5th Chamber English Language Movie Premiere 'The Other Boleyn Girl' March 5th Toastmasters Club Meeting March 5th Travel and Tourism Committee: Sub-Committee on Hotel Industry Meeting March 6th Chamber Special Family Event - Excursion to Kyiv Observatory March 11th Chamber 'In-Focus' Meeting with Mr. Douglas Kramer, Economic Counselor of the US Embassy in Ukraine: Ukrainian WTO Accession — What Does It Mean for Business March 12th IT Committee Meeting March 12th Open Real Estate Committee Meeting March 12th Toastmasters Club Meeting March 13th IPR Committee Meeting March 17th Healthcare Committee Meeting with Mr. Victor Serdyuk, Vice President of All-Ukrainian Council for Patients' Rights and Safety and Mr. Oleksandr Volf, Head of the Association of Palliative Help March 19th Fuel and Energy Committee Meeting March 19th Chamber Business Networking Cocktail 'St. Patrick's Day' at O'Brien's Irish Pub March 19th Toastmasters Club Meeting March 20th 'In-Focus' Meeting with Mr. Mykola Onishchuk, Minister of Justice of Ukraine — Reforming Judicial System in Ukraine March 24th Banking and Financial Services Committee Meeting March 24th Tax Committee Meeting March 25th Agricultural Committee Meeting March 25th Corporate Social Responsibility Committee Meeting March 26th Chamber English Language Movie Premiere 'The Spiderwick Chronicles' March 26th Toastmasters Club Meeting March 27th Business Management Education and Training Committee Meeting March 29th Annual Chamber Indoor Football Championship Cup 2008 — Selection Games, Day I March 30th Annual Chamber Indoor Football Championship Cup 2008 — Selection Games, Day II

APRIL

April 2nd Toastmasters Club Meeting April 3rd Legal Committee Meeting April 5th Annual Chamber Indoor Football Championship Cup 2008 - Selection Games, Day III April 6th Annual Chamber Indoor Football Championship Cup 2008 - Selection Games, Day IV and Final Games April 7th Annual Chamber Indoor Football Championship Cup 2008 Afterparty at O'Brien's Irish Pub April 7th Telecom Committee Meeting April 9th Travel and Tourism Committee Meeting April 9th Toastmasters Club Meeting April 12th Chamber Special Family Project 'Unknown Ukraine': Excursion to Pereyaslav-Khmelnitsky - Museum of the History of Ukrainian Architecture April 16th Chamber 'In-Focus' Meeting with Mr. Ivan Makarenko, Deputy Minister of Environmental Protection of Ukraine April 16th Chamber Captains of Industry Event 'A Night of Lords and Ladies' at the Leo Club April 16th Toastmasters Club Meeting April 21st Banking and Financial Services Committee Meeting April 21st General Membership Meeting with U.S. Ambassador William B. Taylor April 22nd Business Luncheon with Mr. Hryhoriy Nemyrya, Vice Prime Minister of Ukraine April 22nd Joint Agricultural and Real Estate Committee Meeting April 23rd Tax Committee Meeting April 23rd Toastmasters Club Meeting April 24th Chamber Meeting with the Judges of the Supreme Economic Court April 24th Chamber Business Networking Cocktail at Panorama Restaurant April 24th HR Committee Meeting

12 CHAMBER OF COMMERCE CALENDAR OF EVENTS 2008 continued...

MAY

May 7th Toastmasters Club Meeting May 12th Chamber Leadership Meeting with Mr. Bohdan Danylyshyn, Minister of Economy of Ukraine, and Members of His Team May 13th Corporate Social Responsibility Committee Meeting May 14th Toastmasters Club Meeting May 15th Joint IPR and Healthcare Committee Meeting May 15th Travel and Tourism Committee Meeting May 18th EBRD Annual Meeting Business Cocktail Reception May 19th Telecom Committee Meeting May 21st Chamber English Language Movie Premiere 'The Chronicles of Narnia: Prince Caspian' May 21st Fuel and Energy Committee Meeting May 21st Toastmasters Club Meeting May 22nd Business Management Education and Training Committee Meeting May 24th IV Annual Corporate Tennis Cup — Day I May 25th IV Annual Corporate Tennis Cup — Day II May 26th HR Committee Business Game May 26th Banking and Financial Services Committee Meeting May 28th Toastmasters Club Meeting May 29th Tax Committee Meeting

JUNE

June 2nd Fuel and Energy Committee Meeting June 2nd Healthcare Committee Meeting June 3rd Corporate Social Responsibility Committee Meeting June 3rd IT Committee Meeting June 4th Toastmasters Club Meeting June 5th Chamber Meeting with U.S. Secretary of Commerce Carlos Gutierrez June 5th Chamber Business Networking Cocktail at Nobel Restaurant June 11th Chamber English Language Movie Premiere 'Kung Fu Panda' June 11th Toastmasters Club Meeting June 17th Travel and Tourism Committee Meeting June 18th Toastmasters Club Meeting June 19th Chamber Captains of Industry Event 'Leaders in skyNetworking' June 21st IV Chamber Paintball Tournament June 24th Open Agricultural-Real Estate Committee Meeting with Mr. Stanislav Gorbatovych, Head of Department of Land and Evaluation Activity: Land Issues Addressed June 25th Toastmasters Club Meeting June 26th HR Committee Meeting June 27th Legal Committee Meeting

13 CHAMBER OF COMMERCE CALENDAR OF EVENTS 2008 continued...

JULY July 1st Chamber 'In-Focus' Meeting with Mrs. Iryna Kryuchkova, Deputy Minister of Economy of Ukraine July 1st Corporate Social Responsibility Committee Meeting July 2nd Toastmasters Club Meeting July 5th 2008 Chamber American Independence Day Picnic July 7th Banking and Financial Services Committee Meeting July 7th Chamber Picnic Sponsors' Appreciation Reception at Arizona BBQ July 8th Telecom Committee Meeting with Mr. Oleh Shevchuk, Member of Parliament and Former Minister of Transport and Communications July 9th Chamber Business Networking Cocktail at Riviera on Podol Boutique-hotel July 9th Fuel and Energy Committee Meeting July 9th Toastmasters Club Meeting July 10th Travel and Tourism Committee Meeting July 10th Picnic Volunteers Appreciation Party July 16th Chamber English Language Movie Premiere 'WALL-E' July 16th Toastmasters Club Meeting July 30th Toastmasters Club Meeting AUGUST August 6th Toastmasters Club Meeting August 11th Special Corporate Social Responsibility Committee Meeting (Disaster Relief) August 13th Chamber English Language Movie Premiere 'The Mummy: Tomb of the Dragon Emperor' August 13th Toastmasters Club Meeting August 20th Toastmasters Club Meeting August 21st Chamber Special Networking Event - Tropical Boat Cruise — 'Heading South of the 'Border'' August 28th Travel and Tourism Committee Meeting SEPTEMBER September 3rd Toastmasters Club Meeting September 4th Chamber Traditional "Welcome Back" Networking Cocktail at Arizona BBQ September 8th Chamber 'In-Focus' Meeting with U.S. Ambassador William B. Taylor — Georgian / Russian Conflict: Discussion with Major Foreign Investors September 8th Banking and Financial Services Committee Meeting September 9th Toastmasters Club Meeting September 10th Open Agricultural Committee Meeting with Mrs. Valentyina Zavalevska, Deputy Minister of Agrarian Policy of Ukraine September 10th Chamber English Language Movie Premiere 'Tropic Thunder' September 10th Chamber 'Insiders View' Meeting with Leading Political Experts September 11th Joint Travel and Tourism and Tax Committee Meeting September 11th Tax Committee Meeting September 12th Chamber Knowledge Seminar — 'Ukraine's Accession to WTO: Impact on Customs Regulations' September 13th VII Annual Chamber Football Tournament - Selection Games, Day I September 14th VII Annual Chamber Football Tournament - Selection Games, Day II September 15th Telecom Committee Meeting September 17th IPR Committee Meeting September 18th Chamber 'Insiders View' Meeting — 'EURO 2012: Where Are We Now and Future Steps for Success' September 18th Chamber 'In-Focus' Meeting with Mr. Borys Sobolev, Deputy Secretary of the National Security & Defense of Ukraine — Georgian / Russian Conflict: Discussion with Major Foreign Investors September 22nd Real Estate Committee Meeting: City Construction Code Discussion and the Problems of the Sphere September 25th Customs Policy Working Group Meeting September 27th VII Annual Chamber Football Tournament - Selection Games, Day III September 28th VII Annual Chamber Football Tournament - Final Games September 30th VII Annual Chamber Football Tournament Afterparty September 30th HR Committee Meeting

14 CHAMBER OF COMMERCE CALENDAR OF EVENTS 2008 continued...

OCTOBER

October 6th Joint Meeting of Legal Committee, Banking and Financial Services Committee and Joint Stock Company Law Working Group: The Chamber Discussion on Stock Market Situation and Lobbying Legislation October 7th Chamber 'In-Focus' Meeting — Georgian / Russian Conflict, with Mr. Richard Steffens, Commercial Counselor, Embassy of the United States of America October 8th Chamber Silver Card Event 'Mediterranean Teatro Night' in the Opera Hotel October 10th Healthcare Committee Meeting October 13th Open Telecom Committee Meeting with Mr. Oleh Prozhyvalskiy, Deputy Minister of Transport and Communications October 15th Seeds Working Group Meeting October 16th Chamber 'Insiders View' — Current Global Financial Instability and the Repercussions for Business in Ukraine October 16th Chamber Business Networking Cocktail 'International Boss Day' at Swing Restaurant - Bar October 20th Banking and Financial Services Committee Meeting October 22nd IT Committee Meeting October 22nd Chamber Corporate Bowling Tournament, Day I October 22nd Corporate Social Responsibility Committee Meeting with Mrs. Tetyana Kondratyuk, Deputy Minister of Youth and Sports October 23rd Tax Committee Meeting October 28th Joint Tax and Legal Committee Meeting October 29th Chamber 'Insiders View' — Current Global Financial Turbulence and the Repercussions for Business in Ukraine - Perspectives from the IFIs (EBRD, IMF, World Bank) October 29th Chamber Corporate Bowling Tournament, Day II October 30th Chamber 'In-Focus' Meeting — Understanding Challenges and Advantages of the New Joint Stock Company Law October 30th Chamber YP-Net 'Very Scary Halloween' Celebration NOVEMBER

November 3rd Real Estate Committee Meeting November 4th Chamber CFO Market Leaders Breakfast November 4th Chamber Silver Card Event 'Wine Tasting' at La Casa del Habano November 5th Chamber Corporate Bowling Tournament, Day III November 10th Banking and Financial Services Committee Meeting November 11th Fuel and Energy Committee Meeting November 11th Chamber EXCLUSIVE English Language Movie Premiere 'Quantum of Solace' November 12th Chamber Knowledge Series Seminar 'International Tax Planning: Tasks and Solutions' November 12th Chamber Corporate Bowling Tournament, Day IV - Final Games November 13th Chamber Business Networking Cocktail 'World Wide Web Creation' November 14th Chamber 'Networking on Ice' Family Event November 18th Chamber English Language Movie Premiere 'Madagaskar II' November 24th Chamber 'In-Focus' Meeting with Mr. Valeriy Khoroshkovskiy, Head of the State Customs Service of Ukraine, on Customs Policy in the Current Economic Situation November 26th Chamber Business Luncheon with U.S. Ambassador William B. Taylor November 29th Chamber Captains of Industry Event 'Chamber Salutes our Captains' at Hyatt Regency Kyiv DECEMBER

December 3rd Chamber Marketing Club ‘Crossing the Borders of Marketing’ December 4th Chamber Traditional Business Networking Cocktail 'Get to Know the Candidates' at O'Brien's Irish Pub December 11th Annual Meeting and Board of Directors Elections

15 CHAMBER SUCCESS STORIES IN 2008

POLICY RELATED SUCCESS STORIES

Throughout 2008, despite the ongoing political turmoil, the Chamber Policy Team in conjunction with the Board of Directors and interested Members were successful in advocating for many positive changes that impacts both the domestic and international business community for the benefit of the Chamber Membership and ultimately Ukraine making the country more competitive in the global arena. Chamber "Success Stories" in this regard include but are not limited to the following:

Ukraine's Accession to the World Trade Organization

In the past and throughout 2008 the Chamber Board of Directors, Policy Team in conjunction with many Committees, Working Groups and fellow Members worked diligently to advocate for Ukraine's accession to the World Trade Organization through the adoption of many important pieces of legislation and took an active role in assisting to our Member Companies in understanding the impact of WTO accession in regards to tariff policies and issues relat- ing to standardization requirements.

Chamber “In-Focus” Meeting on Ukraine’s accession to WTO “What Doest it Mean for Business” with Mr. Douglas Kramer, Economic Counselor of the US Embassy in Ukraine

Councils established under Ministries and State Committees where Members discussed draft legislation in regards to WTO accession. The Chamber also hosted many round tables and events dedicated to draft legislation, special "In-Focus" meetings with relevant guest speakers and updates on the progress of Ukraine's negotiations during accession meetings.

Ukraine became a Member of the World Trade Organization (WTO) on May 16th, 2008. It has been a long journey as Chamber "Knowledge Seminar" on Ukraine's accession to WTO Ukraine has been striving towards this day for almost 15 and its impact on customs regulation with Mr. Denys Shendryk, years and finally has reached this goal. After 14 years of Senior Customs Consultant and Mr. Ihor Dankov, Indirect Tax accession negotiations, the Working Party on the Accession Senior Manager from PricewaterhouseCoopers (left to right) of Ukraine successfully adopted Ukraine's 'accession pack- The Chamber regularly informed Chamber Members on all age'. The WTO accession provides a lot of advantages and developments in regards to Ukraine's accession including the Ukrainian governmental structures have to work hard and Chamber's work and activity throughout the variety of Public utilize professionals.

"Regulatory Guillotine" - Quick Deregulation of the Legislation

In 2008 the Chamber Policy Team, working closely with The Chamber was pleased to see its lobbying efforts trans- interested Members including the USAID funded TIBA proj- formed into the Cabinet of Ministers Resolution # 824-p dated ect, proactively advocated and supported the adoption of June 11th, 2008. State Committee for Land Recourses, Ministry the Governmental Resolution starting the so-called of Regional Developments and Constriction and Ministry of "Regulatory Guillotine" - the quick deregulation of the leg- Culture and Tourism have created special working groups islation in three very important spheres for business operat- assembling representatives of business and experts. The aim of ing in Ukraine: land usage, construction and tourism. their work is to view all regulatory acts of these Ministries regu-

16 CHAMBER SUCCESS STORIES IN 2008 continued... lating business relationships between the State and business The Chamber welcomes this decision of the Government entities regarding permissions issuing, licensing and state con- and perceived its implementation as a real opportunity to trol. As a result of this work all regulatory acts will be divided for improve Ukrainian business climate and create more trans- three groups: 1) business friendly, 2) needed to be amended parent and effective relationships in the spheres of land and 3) needed to be abolished. The Chamber has also ensured usage and construction which unfortunately, is very prob- participation of the Chamber Members' representatives in each lematic for business. of the established Working Group.

Regulation of Trade in Food Products

At the end of May 2008 the Chamber together with Members operating in the area of trade (wholesalers, retailers, etc.) was actively involved in the successful lobbying of the veto to the Law of Ukraine supported by the Parliament earlier in April under the guise of anti-inflation legislation "On Regulation of Realization of Separate Socially- Significant Food Products". The document generated tremendous amounts of concern from both Chamber Member companies operating in the wholesale and retail trade sectors as well as agricultural producers and logistic operators. The Chamber Policy Team in conjunction with many partner organizations who represented industry sector associations jointly addressed President Viktor Yushchenko with a letter and a relevant Press Release was Mr. Leonid Kozachenko, President of the Ukrainian Agrarian issued. On May 23, a special Press Conference devoted to the Association and Mr. Jorge Zukoski, Chamber President at the spe- situation around the Draft Law "On Regulation of Realization of cial press conference devoted to the Draft Law on regulation of Separate Socially-Significant Food Products" was held with trade in food products (left to right) active participation of the Chamber and Chamber President Jorge Zukoski, Agricultural Foundation, Association of Trade fighting inflation and would have a potentially negative impact and Diary Association advocating for the necessity to veto and on this important area of the economy. The Chamber stressed to return the Draft to the Parliament with accurate and thor- that similar legislative initiatives in the future should be devel- oughly prepared recommendations. oped in conjunction with the business community to ensure that the goals of the Government are achieved, taking into It was noted that the business community welcomes and sup- account the impact that it would have on the business com- ports the actions of the Government directed at fighting infla- munity and ultimately Ukrainian consumers. tion. At the same time, the Chamber clearly stated that the proposed Draft Law "On Regulation of Realization of Separate As a result of these joint efforts the Law was vetoed by the President Socially-Significant Food Products" would not in fact assist in of Ukraine Viktor Yushchenko and returned to the Parliament.

Joint Stock Company Law

Working Group. Members were working in many different directions to prepare the text, to advocate on the main ideas to be included into the draft as well as to educate and popularize the idea of the modern joint stock company legislation in Ukraine. The Chamber's representatives regularly took part in the activities of the working group established by the State Commission on Securities and Stock Market to finalize the draft and arrange buy in from many important stakeholders. Chamber “In-Focus” Meeting on challenges and advantages of The first positive step and success was achieved in the new Joint Stock Company Law with Mrs. Olena Shcherbyna, commercial Law Center and Mrs. Diana Shmakhtina, February when the Cabinet of Ministers of Ukraine SigmaBleyzer approved the final version of the Draft Law "On Joint Stock Companies" and submitted it to Parliament for fur- Due to the importance of the Joint Stock Company ther consideration. A properly drafted JSC Law was very ("JSC") Draft Law for Ukraine, its investment climate and important for all sectors of business operating in Ukraine in regards of protecting current investors as well as and is considered a major cornerstone for the protection attracting additional investments the Chamber Policy of minority shareholder's rights and fostering proper cor- Team had assembled a special Joint Stock Company porate governance.

17 CHAMBER SUCCESS STORIES IN 2008 continued...

The Chamber JSC Working Group was comprised of interested 514-VI). The Chamber applauded all law makers whose Chamber Members who are professionals in their respective wisdom allowed for the passage of this important piece fields and can contribute positively in the process of reviewing of legislation that the Chamber has been diligently the draft legislation to ensure that the concerns of the legiti- advocating for over many years. mately operating business community are taken into account during the process of passing and signing into Law this impor- The passage of the Joint Stock Company Law sends a tant piece of legislation. The Chamber Policy Team was respon- strong positive signal to all investors, no matter their sible for taking the recommendations and amendments devel- nationality of capital, during these turbulent times both oped by the Working Group forward and monitoring the in the global financial markets and in the contentious process in the Parliament ensuring that the Chamber Members' political environment within Ukraine, that the country is viewpoint is taken into consideration. in fact open for business.

On September 17, Parliament of Ukraine supported the In 2009 the Chamber Joint Stock Company Working Group Draft in the 2nd reading with 358 affirmative votes together with colleagues of the Chamber Working Group (from a total 450) and sent it to President of Ukraine for on Illegal Corporate Raider Attacks are planning to contin- his signature. On October 22, President Yushchenko ue discussions of the newly adopted Law On JSC to under- signed the document finally making this long anticipat- stand all consequences for the business community and ed piece of legislation a reality (Registration number is further develop the necessary implementing regulations.

Grain Quotas Removed

On May 21, 2008 the Cabinet of Ministers, with Resolution Removal of grain quotas was one of the core policy priori- # 470, removed export quotas on grain. ties of the Chamber. Members of the Chamber Agricultural Committee in numerous meetings with government offi- This step together with an abundant harvest in 2008 provid- cials, position papers, and official letters have been advo- ed the possibility for Ukraine to become one of the biggest cating for implementation of market mechanisms, in partic- market players in the international grain market. At the ular removal of a quota system, which will positively influ- beginning of 2008 the situation in the world grain market, ence transactions of grain traders, improvement of invest- growing food prices and growing demand provided broad ment climate, increase profitability of farmers, and gener- perspectives for Ukraine as a grain exporter. By introducing ate significant export budget revenues. transparent and consistent policy in the sphere of grain export, Ukraine will significantly increase supply to help sat- The Chamber strongly supported the removal of grain quotas, isfy growing demand in other regions of the world. which together with WTO membership will raise Ukraine's competitiveness in the Agricultural sector. On behalf of the According to the expert view of the World Bank, Ukraine, in Chamber Member Companies the Chamber expresses strong conditions of full removal of export restrictions can double support of the government and its policy towards removal of its grain production, which will significantly strengthen grain export restrictions and the Chamber's readiness to con- Ukraine's position as a powerful player in the world market tinue cooperation aimed at improving the competitiveness of and fully satisfy the internal needs of the country. the Ukrainian agricultural sector.

Chamber Banking and Financial Services Committee: Moving Forward Agenda of Financial Sector Reforms

The Chamber Banking and Financial Services Committee's achievements and high level of professionalism have been acknowledged by the Cabinet of Ministers and investors' community through the election of the Chamber Committee Co-Chair Mr. Jacques Mounier, as the Co-Head of the Working Group on Banking and Financial Sector of Mr. Jacques Mounier, Co-Chair of the Chamber Banking and the Investors Council under the Prime Minister. Under the Financial Services Committee was elected as the Co-Chair of the leadership of Mr. Jacques Mounier the Chamber Banking Prime Minister’s Investors Council’s Working Group on Financial and Financial Services Committee developed the Matrix of and Banking Policy

18 CHAMBER SUCCESS STORIES IN 2008 continued...

Legislative Changes in Financial Sector, which became a In terms of difficult challenges posed by the global base of Investors Council working plan. The Matrix financial crisis and developing an action plan to suc- describes necessary legislative and regulatory amend- cessfully address these issues, recommendations of the ments including either short term, or strategic decisions, Chamber were considered by the President of Ukraine, amendments to: Laws, Resolutions of the Cabinet of Cabinet of Ministers, and People's Deputies. In particu- Ministers, Resolutions of the National Bank of Ukraine, lar, in Decree #956 the President recommends to Decisions of the State Commission for Securities and Stock strengthen requirements regarding transparency in Market, State Commission for Financial Markets corporate management of banks and identification of Regulation. The Matrix describes legislative amendments real owners of banks (which was recommended by the to be made in Currency Control, Banking Supervision, Chamber). The Cabinet of Ministers with Draft Law # Insurance, Financial Services, Leasing, Mortgage, Stock 3309 proposes to amend the Law of Ukraine "On Banks Market, Foreign Exchange Market, Corporate Legislation, and Banking Activity" in regards to optimization of Financial Sector related Taxation. information disclosure.

Using the Chamber's recommendations as described in the The Chamber, being an active participant of Cabinet of Matrix, the State Committee on Securities and Stock Market Minister's Investors Council and the Foreign Investors started the development of the Law of Ukraine "On Advisory Council under the President, thanks the President, Derivatives", the National Bank of Ukraine supported imple- Government, National Bank of Ukraine and authorities of mentation of international financial reporting standards for executive power for continuous cooperation and will con- non banking financial institutions, as well as the facilitation tinue to be actively engaged in moving the agenda of finan- of money market development. cial sector reforms forward.

The Chamber Disaster Relief Fund (Flooding in Western Ukraine)

The Chamber Disaster Relief Fund was created to gather donations and disburse them under the guidance and recommendations of the U.S. Embassy in Ukraine which sent a team to Western Ukraine to assess the most urgent needs. The Chamber Board of Directors Corpo- rate Social Responsibility ("CSR") Committee coordinat- ed fund disbursement utilizing recommendations from the U.S. Embassy.

PricewaterhouseCoopers provided a report regarding the utilization of donations within the Chamber Disaster Relief Fund. The Fund was working for two months. All the funds gathered were transferred to Red Cross.

Many Chamber Members were actively participating in the In July 2008 the worst storms in over two centuries have led relief effort by providing both in-kind donations as well as to devastating flooding in some of the most impoverished funds to assist in addressing the most urgent and pressing parts of Ukraine. More than 38 lives were lost in Western needs such as food, water, medical supplies and tools and Ukraine. Thousands of homes were destroyed or made unin- equipment for disinfecting buildings. Examples of donated habitable and homes of more than 20,000 people had to be items include but are not limited to: evacuated. Estimates put the damage at over one billion US dollars. Six regions were affected in Western Ukraine: Ivano- Food Supplies: bread, water, croutons, canned goods, Frankivsk, Chernivitsy, Zakarpat-tya, Lviv, Ternopil and soda, sugar, salt, potatoes, macaroni, oil, chocolate, flour, Vinnytsia. In these regions 655 settlements, with around yeast, grains, tea, coffee, dry soup mixes, food for cattle. 40,000 houses, more than 30,000 hectares of arable land and 680 kilometres of roads have been damaged. This natural dis- Medical supplies: vitamins, medical kits, pills and pow- aster has closed roads, hospitals and schools, washed away dered (soluble in water) anti-flu medicine, hematogen. bridges, disrupted electricity and telecommunications services as well as supply routes for food, drinking water, medical Household supplies: dry-fuel burners (for cooking), supplies and other necessities. warm clothes (sweaters, pants, socks), resin boots, can- dles, matches, flashlights, lighters, gasoline, diesel fuel, In this time of need the Chamber in conjunction with U.S. folding beds. Embassy established a special fund and program to identify needs and coordinate donations of supplies and funds The Chamber thanks all Member companies, which donat- that were distributed in a timely fashion to those impacted their funds, as well as time and effort to help Ukrainians ed by the disaster. in this time of need.

19 CHAMBER SUCCESS STORIES IN 2008 continued...

EVENTS RELATED SUCCESS STORIES

Over the last 16 years the Chamber of Commerce has been working diligently to add value to the Membership by providing a wider variety of professionally executed events that serve as a platform for Business and Social Networking. The Chamber is constantly striving for improving the quality as well as increasing the quantity of the organized events.

Business Networking Cocktails remain one of the most popular events in the Chamber's Networking offerings and in 2008 they have grown dramatically in the number of attendees. It is always a very effective Networking opportunity open to all Chamber Members without prior registration.

members during friendly competitions enabling them to show off their talents while building teamwork and fostering a healthy lifestyle.

On July 5th the Chamber of Commerce organized successful Annual Charitable American Independence Day Picnic, which was another remarkable success. The event is held to strengthen the values of democracy and freedom, as well as friendship and cooperation among nations. The 2008 Picnic brought together thousands of people who enjoyed a real American Picnic right here in Ukraine. Guests experienced During the year the Chamber successfully organized sever- great live entertainment and a spectacular fireworks show al high-level Networking events for the top managers of as well as having an opportunity to participate in all kinds of Member companies entitled Captains of Industry ("COI") games and contests, while enjoying a beautiful sunny day Events. It is an excellent opportunity for CEOs/Senior with friends and family. Managers of Chamber Member companies to Network with other business leaders, diplomats and special guests The Events Team of the Chamber will continue to develop new in a thematic and sophisticated atmosphere. In 2008 the and exciting Events in 2009 enabling the Membership to effec- COI Events were extremely popular among the Members tively Network while building the business contacts and exchang- and much of the success in organizing these events is ing valuable insight and information with their colleagues. thanks to the 2008 COI Events Primary Partner MTS.

In 2008 the Chamber continued the successful tradition of organizing Chamber Young Professional Network ("YP-NET") events where many young professionals from Member companies enjoyed the opportunity to Network with their peers and meeting colleagues while sharing the same interests and values.

Chamber various Social / Family and Sport events are great team building opportunities for the Member companies, gathering players and their colleagues, friends and family

20 CHAMBER SUCCESS STORIES IN 2008 continued...

COMMUNICATIONS RELATED SUCCESS STORIES

The Chamber is pleased to continue developing a strong com- pleasure for the Chamber to work with the leaders on the munications platform and a reputable positioning in Ukraine market and provide its Membership with access to interest- and abroad. Among key components of the Chamber coming value added events with special Chamber discounts. This munications activity is working with leading international helps the Chamber maintain a strong communications plat- media and domestic informational agencies. LexisNexis pro- form and further develop reputable positioning in Ukraine vides Chamber Members with the latest and most relevant and abroad. international news, whereas Chamber Member Interfax Ukraine run-string on Chamber website keeps the In 2008 the Chamber successfully launched, together with Membership updated on recent news in Ukraine. The Chamber Member New Frontier Media Group Ltd., a new Chamber thanks its partners for providing the Membership monthly project entitled Chamber News in Business Ukraine with these comprehensive informational products.

The Chamber developed and will maintain successful relations with leading international media such as Reuters and Financial CHAMBER Times. This year the Chamber was featured in the Washington Post Magazine, Fortune Magazine and The New York Times. NEWS The official newsletter of The American Chamber of Commerce in Ukraine Chamber was pleased to become a partner with Oxford Business Group contributing to its 2008 Ukraine Report http://chamber.ua/UK08_BusinessGuide_Zukoski_intv.pdf as an answer to the rapidly changing Ukrainian economic and This comprehensive publication is published by the Oxford political situation that requires new sources of information as Business Group ("OBG") for a third year in a row providing a well as business skills and strategies. The Chamber is pleased solid overview of Ukraine's business and economic environ- to contribute to Business Ukraine as an informative and prac- ment that is widely distributed throughout the globe. The tical English-language publication in order to provide Chamber is constantly striving to strengthen its communica- Chamber Members and other readers with up-to-date infor- tions platform and is pleased to have successfully partnered mation on the Chamber Policy, Advocacy and Lobbying relat- with OBG on this high profile publication. ed activities and other targeted analytical business related information, comprehensive overview of events and services International Conferences and events remain one of the key provided by the Chamber to Members. Business Ukraine is a pillars of Chamber Communica-tions activities. It is always a weekly magazine in English with a print run of 25,000 copies that is distributed throughout Ukraine to key decision makers ‘WE HAVE TRAVELED VERY FAR in both business and politics. The Chamber is pleased that the DOWN A POSITIVE ROAD OF REFORM’ publication has been produced in association with Chamber Uniting leading companies from over 50 nations across Members Winner and Kyivstar. the globe, the Chamber says the time to invest is now “A lot of things need to be done: that there are incredible oppor- more reforms, political stabili- tunities here,” says Zukoski. ty, corruption needs to be He admits that there are chal- addressed. But at the end of the lenges ahead, saying that day, there are no other markets Ukraine still lacks the sufficient In 2008, with the help of Member company Running Code left in the world that are as legislative and regulatory base dynamic and underdeveloped as to facilitate large-scale invest- the Chamber successfully launched Chamber TV Ukraine,” states Jorge Zukoski, ment. Drawing on the expertise (www.chamber.ua/video). Based on the latest flash video president of the American Jorge Zukoski of its membership, mostly large and server-side technologies the Chamber website offers Chamber of Commerce (the President of multinationals, the Chamber is Chamber) in Ukraine. The Chamber currently working on a new tax video streaming player where everyone interested can Zukoski says that the code, and lobbying for a frame- watch videos from the Chamber Policy meetings and events Chamber, as the first stop for many for- work that will allow a more mature mar- in case they missed a meeting itself or would like to refresh eign investors moving into the country, ket. Previously, it was instrumental in has witnessed “a massive interest in the introduction of a new land code, civ- their memory on the topic again. Ukraine.” And despite remaining obsta- il code and mortgage law and in Ukraine’s cles, the country has made great strides World Trade Organization accession. in reforming its business environment. “As business people we like to see He says the time is ripe for investors. things move fast and to see things done “A lot of our members are solidifying yesterday. So sometimes we have to stop their market position. The reason for this and ask: “Where were we and where are is that they understand the competitors we today?” And when we compare, we are coming soon because everybody has have traveled very far down a positive road started to realize where Ukraine is and of reform,” concludes the president.

The New York Times Magazine, October 26, 2008

21 CHAMBER INNOVATIONS IN 2008

The Chamber continues to strive to be a "Key to needs of both the companies and individuals that Your Success". The Chamber focuses upon inno- the organization represents. These innovative vation in our activities when developing new activities are first introduced by the Chamber and value added services that are provided as often used as best practices by other organiza- Membership benefits proactively addressing the tions both in Ukraine and throughout Europe.

POLICY INNOVATIONS (Policy Priorities, Committees & Working Groups, Insiders View Meetings and Knowledge Seminars)

The Chamber Policy Team in conjunction with many dedicated Members, despite the political and financial turmoil in 2008, have been able to introduce and support many innovative initiatives and projects that add value and help the Members to be successful in this difficult environment. New innovative approaches in the advocacy and lobbying sphere in 2008 include but are not limited to:

Investors Council of the Cabinet of Ministers of Ukraine

In 2008 a new Government began to explore new commu- and high level of professionalism were acknowledged by nication and policy channels to develop and maintain a reg- the Cabinet of Ministers and the Chamber Banking and ular dialog with the investment community. In April 2008 Financial Services Committee Co-Chair Mr. Jacques the Chamber was invited, and since then, has been proac- Mounier was elected as the Co-head of the Working Group tively involved in representing the Membership within the on Banking and Financial Sector of the Investors Council new Cabinet of Ministers Investors Council. Many under the Cabinet of Ministers of Ukraine. Deputy Minister Chamber Committees and Working Groups have been Anatoliy Maksyuta was appointed as the 2nd Co-head. The directly involved in regular meetings of the Cabinet of Ministry of Finance, State Committee on Technical Ministers Investors Council advocating for necessary Regulation and Consumer Policy, State Commission on changes in their appropriate industry sectors. The Securities and Stock Markets, Ministry of Regional Chamber Banking and Financial Services Committee Development and Construction, etc. also maintain an worked hard and managed to accomplish many complicat- active dialog under auspices of the newly established ed and ambitious tasks. The Committee's achievements Investors Council and work closely with the Chamber.

EURO 2012

EURO 2012 is one of the most challenging and compli- zation. Many Chamber Members are already involved in cated projects that Ukraine has undertaken since inde- a variety of investment projects in many cities as well as pendence. It is not only one of the largest sporting in many industry sectors. events in Europe, but it is also an opportunity, if properly executed, that will provide Ukraine with tangible benefits for years to come. Among the Chamber's 2008 Advocacy & Policy Activity Priorities the EURO 2012 project occupied an important place.

This project itself is innovative by its nature and complexity: many State and private partners are involved; there is a necessity to coordinate efforts and policy on a Ukrainian and Polish level as well as between cities that host the tournament; strict UEFA requirements in regards to many aspects of the project including IPR protection and security; modernization of outdated sport infrastructure; improvement of transport infrastructure; a need to further develop hospitality infrastructure such as hotels; etc. The Chamber has been working diligently Chamber “In-Focus” Meeting on EURO 2012 with Mrs. Oksana on many aspects of EURO 2012 preparation and organi- Slyusarenko, Deputy Minister of Economy of Ukraine

22 CHAMBER INNOVATIONS IN 2008 continued...

Chamber Members who are lawyers and consultants are The Chamber has been proactively supporting the EURO also heavily involved in preparation of the legislative and 2012 Project stressing its importance and highlighting regulatory framework that is necessary to be developed and opportunities for the Ukrainian economy, investment com- implemented to ensure that Ukraine can attract the much munity and Ukrainian citizens by: continuous involvement in needed investment. an information support campaign highlighting for its Membership and partners all important developments and news; jointly working together with other engaged groups to advocate through a variety of established Public Councils and ad-hoc Working Groups; participation and hosting of special meetings with Ukrainian and international decision- makers, Ukrainian central and regional State authorities and investors; support and moderation of specialized conferences and seminars; etc.

A special website corner on EURO 2012 is available on the Chamber website - www.chamber.ua - where many important documents, information and timely updates can be found.

Deregulation

Deregulation of business activity continued to be among very important spheres. Also, as a result of a consistent and the top priorities of the Chamber considering preparation regular advocacy efforts the Chamber's representatives are for EURO 2012 (especially in such areas as land usage, con- members of three (3) Working Groups under the Ministry of struction and tourism) as well as the general necessity to Regional Development and Building, State Agency of the move forward achieving progress in this highly important Land Resources and State Tourism Administration, which area, which influences the overall competitiveness of are tasked with analyzing existing regulations with the goal Ukraine's economy. of decreasing the overall number of regulations and make those that are remaining transparent and simple to use. The The Chamber Policy Team actively advocated, lobbied and Chamber has been pleased to work closely with Chamber supported adoption on June 11, 2008 of the special Cabinet Member USAID-TIBA project who have been instrumental of Ministers Resolution on quick deregulation of these three in rolling out what is known as the "Regulatory Guillotine".

New Format of the Work with the Parliament of Ukraine - VR Committees' Expert Councils

Developing a regular dialog and opportunity to provide Entrepreneurship and of the Verkhovna Rada feedback to draft legislation versus the need to change Committee on Tax and Customs Policy. Since that time a current piece of legislation has always been a priority the Chamber Policy Team utilizes this new opportunity for the Chamber. Since 2008 the Chamber because of its and direct access to Verkhovna Rada Deputies to lobby role, respect and influence was invited by Parliamen-tar- important initiatives, which relate to appropriate draft ian Committees to join Expert Councils of the Verkhovna legislation considered by these Parliamentarian Rada Committee on Industrial and Regulatory Policy and Committees.

WTO Accession On May 16th Ukraine became a member of the World Trade having the country as part of a rules based international Organization. For many years the Chamber together with its organization and paving the way for negotiations on an EU fellow Members, Committees and Working Groups was Free Trade Agreement far outweighed any short term loss- involved in working on a large number of pieces of draft leg- es. The Chamber is proud that many of these laws have islation that needed to be adopted to enable accession as been adopted in a proper format serving the interests of the well as advocated to the appropriate Ukrainian and foreign Ukrainian market thanks to the consistent and diligent work State authorities on the benefits and new opportunities, of the Chamber Board of Directors, Policy Team, the which the Ukrainian economy would realize as a result of Chamber Committee leaders and Members. WTO accession WTO Membership. The Chamber continued to stress that is a major milestone on Ukraine's path to being a truly com- the benefits of the liberalization of Ukraine's trade regime, petitive economy in the global market place.

23 CHAMBER INNOVATIONS IN 2008 continued...

New Chamber Committees & Working Groups The Chamber Committees and Working Groups continue to launched at the beginning of 2008. TNK-BP, Shell Ukraine, serve as the main Advocacy & Policy vehicles to successful and Marathon Petroleum Ukraine LLC were among the vol- lobby for positive changes. The Committees and Working unteers to lead the Committee, which is aimed to promote Groups enable Member organizations to address pressing the further development and modernization of Ukraine's industry and sector specific policy related issues to all levels energy sector by attracting investment, in support of the of appropriate Ukrainian State authorities including but not vision of creating a more energy self-reliant Ukraine. limited to the Parliamentarian Committees, Presidents Administration, Cabinet of Ministers and individual At the end of 2008 an Insurance Committee was estab- Ministries, city and regional administrations etc. The lished that is based on a number of insurance market play- Chamber Committees are standing, many of which have ers previously working under the umbrella of the Chamber been active for many years. On the other hand, the Chamber Banking & Financial Services Committee. A new volunteer Membership utilizes Working Groups to focus on specific group is leading the process of establishment of the new issues and bring together Members who are experts on that Committee, which plans to develop the insurance markets issue to develop and execute an action plan to resolve the using international best practices while proactively promot- problem and then disband. This structure is very effective in ing a variety of new financial services in Ukraine. resolving specific issues in a short period of time. In the framework of the Draft Law "On Amendments to the Law of Ukraine "On Seeds and Planting Stock" it is necessary to ensure that Ukraine has a properly drafted Seed Law, which is very important for all seed companies operating in Ukraine as it improve the legal environment in general facilitating business growth and adhering to international standards. Due to the importance of this piece of legislation for the agricultural industry and further development of seeds Based on the Membership interest and specificity of the business in Ukraine, the Chamber has assembled a special Ukrainian market a new Fuel and Energy Committee was Seeds Working Group.

EU Regulation on Registration, Evaluation and Authorization of Chemicals (REACH) After several years of intense debates on June 1st, 2007 the proactively responded to this important challenge by new extensive EU Regulation on Registration, Evaluation updating Members on all related developments / events / and Authorization of Chemicals (REACH) has entered into news on a regular basis, established a new REACH section force. It constitutes one the most complex and comprehen- on the official Chamber website as well as been running an sive pieces of legislation the EU has ever introduced, chang- appropriate section in the weekly Chamber electronic pub- ing dramatically the way chemicals are regulated in Europe. lications. The Chamber has been supporting events related Obviously, this poses challenges both for chemicals manu- to REACH both inside and outside of Ukraine. An example facturers and importers, as REACH shifts the burden of was the EBRD Seminar Workshop on REACH organized in proof from the authorities to businesses. The Chamber has Kyiv in September.

Chamber "Insiders View" Meetings This format of meetings, exclusively for Chamber Members, was designed to proactively respond to the needs of the Membership within the dynamic and fluid political environment providing value added benefits and access to timely information and decision makers. Initially the events were dedicated to analysis of the election campaigns performed by the leading parties and blocks, possible scenarios and prognosis on winners of the election campaign and formation of coalition in Verkhovna Rada.

In 2008 EURO 2012 was a focus of Chamber Policy-related Chamber “Insiders View” Meeting with leading political experts: events and one of the "Insiders View" Meetings was Mr. Kost Bondarenko, Kyiv Institute of Governing Problems; Mr. designed to talk about this important project — "EURO Volodymyr Fesenko, Penta Center for Political research; and Mr. 2012: Where Are We Now and Future Steps for Success". Vadym Karasiov, Institute of Global Strategies (left to right)

24 CHAMBER INNOVATIONS IN 2008 continued...

Considering the relevance and importance of the recent scenarios. In the same vein the Chamber also hosted developments in the global financial markets as well as the "Current Global Financial Instability and the Repercus- specificities of the Ukrainian internal political and econom- sions for Business in Ukraine Perspectives from the IFIs ic situation the Chamber also hosted special sessions for (EBRD, IMF, World Bank)" providing access to leaders of the representatives of Chamber Member companies to benefit international financial institutions including the Head of the from an in-depth discussion of these issues with market International Monetary Fund's ("IMF") Mission, Ms. Ceyla insiders — "Current Global Financial Instability and the Pazarbasioglu, who updated the Chamber Membership Repercussions for Business in Ukraine" — inviting leading with important news and insights related to the current sta- professionals from the private sector representing private tus of their operations in Ukraine aimed to relive some of equity, international financial institutions and corporate the pressure in the financial markets. Many other meetings and investment banking to exchange views, discuss differ- were also held providing Members with additional insight ent aspects of this problem with views and talk on possible and information during the business planning process.

Chamber "Knowledge Series" Seminars The Chamber Knowledge Seminars held within the framework of the Chamber "Competitiveness of the Ukrainian Economy" Series have served as another innovative tool providing Members a unique opportunity to obtain a direct access to cutting-edge technologies and hear from the true leaders in a variety of industry sectors.

Examples Chamber Knowledge Seminars of include but are not limited to: LexisNexis - "Detect Fraud and Reduce Risks by Knowing Your Customer: Your Ticket to Enhanced Due Diligence" and LexisNexis Academic "Empower students to become independent, sophisticated researchers"; PricewaterhouseCoopers - "Ukraine's Accession to WTO: Impact on Customs Regulations", the Dutch KempHoogstad - "International Tax Planning: Tasks and Solutions" and discussed many important issues and areas helping and assisting employees of the fellow Members to continue to professionally develop, grow and successfully compete.

EVENTS INNOVATIONS (Business Networking Cocktails, Bowling and Paintball Tournaments)

Over the last year the Chamber of Commerce has been work- Events Team has been successful in increasing the number ing diligently to add value to the Membership by providing a and quality of events in 2008 and looks forward to continuing wide variety of professionally executed events that serve as a to introduce new, innovative and segmented events adding platform for Business and Social Networking. The Chamber more value to Member Companies in 2009 and beyond.

Business Networking Cocktails

In 2008 the Chamber introduced thematic topics for each Business Networking Cocktail.

Chamber Business Networking Cocktails remain one of the most popular events among the Chamber Networking offerings having dramatically developed over the years and continue to be a very effective Networking opportunity open to all Chamber Members.

One of the hallmarks of a Chamber Networking Cocktail is that guests have an opportunity to Network with the right people in a relaxed atmosphere.

25 CHAMBER INNOVATIONS IN 2008 continued...

The Chamber Corporate Bowling and Paintball Tournaments

In 2008 the Chamber Events Team launched two new team building and sport competitions which were highly successful. They included the Chamber Corporate Bowling Tournament and the Chamber Paintball Tournament. These are exciting team building events that provided an exciting opportunity for both players and fans to interact during a great sporting event. They were yet another in a series of excellent Chamber team building and Networking events that highlighted a healthy lifestyle, brought out the best in the Members in sportsmanship and showed off their talents both inside and outside the office.

COMMUNICATIONS INNOVATIONS (Chamber News Section in Business Ukraine Magazine, Press-Room Section on Website, Interfax Run-String, Chamber TV, Mini Weekly and Meeting Highlights)

Chamber News in Business Ukraine Magazine Chamber News in Business Ukraine magazine is a new comprehensive overview of project successfully launched with Chamber Member New events and services provid- CHAMBER Frontier Media Group Ltd. aimed to provide Chamber ed by the Chamber to Members and other readers with up-to-date information on Members, investors and NEWS the Chamber Policy, Advocacy and Lobbying related activi- senior business profession- The official newsletter of The American Chamber of Commerce in Ukraine ties, targeted analytical business related information, and a als in Ukraine.

Chamber Press-Room (www.chamber.ua/press_room) Among many 2008 communications related innovations the Events — contains information and photos on the latest Chamber was pleased to launch the Chamber Press-Room. Chamber Policy and Networking events. The Press-Room is designed to make communications with Policy Opinions — section that contains Chamber state- media easy and productive. Chamber Press-Room contains ments on relevant policy issues. relevant information about the Chamber and allows jour- "Chamber Expert View" where media can approach nalists to access information about the latest policy and Chamber Board of Directors (the CEOs of the biggest Networking events of the Chamber, provides an opportuni- international companies) and Chamber Committee Co- ty to subscribe to the Chamber media list to receive press- Chairs (senior management of Chamber Member com- releases, invitations to press related events, Chamber opin- panies) and get an opinion or a comment within their ions and official statements in a timely matter. sphere of activity. Chamber press mailing list allows registering in Chamber Three major sections of the Press-Room are: Media database and receiving Chamber Press-Room Press releases updates, press-releases, announcements, etc.

Online Surveys In 2008 the Chamber implemented online surveys as an inter- ments and suggestions regarding Chamber strategic and prac- active tool to receive timely and valuable information from tical Policy and Committee development. The Chamber the Membership to improve the benefits and services offered Policy and Events Teams find it very beneficial to receive by the Chamber. an immediate feedback from Members in order to meet the needs of rapidly changing business demands and The Chamber is pleased to have started a long-term coopera- provide Members with better service at all times. The tion with Chamber Member and Official Service Provider feedback provided by the numerous respondents is WorldAPP, Inc. which helps the Chamber gather feedback invaluable in ensuring our commitment to providing tar- from Members after events and gather information, com- geted benefits for all Members.

26 CHAMBER INNOVATIONS IN 2008 continued...

Interfax Run-String Interfax-Ukraine Run-String is another successful value The Chamber was also pleased to start a daily morning added benefit for the Chamber Membership and an innova- announcement to the entire Membership with breaking tive addition to the Chamber interactive and constantly news from Interfax that provides busy Chamber Members updated website (www.chamber.ua). This is a unique bene- a chance to see a brief snapshot of important news that fit only for Chamber Members providing free of change may impact their business. All part of the many Chamber access to the latest political and business news in English. Membership benefits.

Chamber TV In 2008 the Chamber was proud to introduce an important innovation called Chamber TV, an internet-based video streaming player. Chamber TV (www.chamber.ua/video) is designed to provide Members access to discussions and presentations that take place during Chamber meetings to either refresh the memory of those who attended or provide insight and access to those who may have missed the meeting. This exciting innovation was created in conjunction with Chamber Member Running Code.

Chamber Mini Weekly In order to meet the goal of delivering up-to-date informa- has all the necessary information regarding upcoming "In- tion to Members in a fast, convenient and concise way, the Focus", "Insiders View" meetings as well as other policy Chamber launched an innovative publication entitled meetings, business Networking cocktails and other addi- Chamber Mini Weekly which comes out every Monday and tional Networking opportunities for Chamber Members.

Chamber Meeting Highlights

In October 2008 the Chamber launched a brand-new e-pub- Chamber Press-releases, presentations that were used dur- lication entitled Chamber Meeting Highlights, which ing the recent meetings and a link to the Chamber TV with includes important information such as: meeting notes, the video from the meeting.

27 CHAMBER EXTERNAL COMMUNICATION ACTIVITIES

In 2008 the American Chamber of Commerce in Ukraine has Providing informational support to international events, continued working on further developing effective and tar- conferences, roundtables, etc. in Ukraine and across the geted external communications for the benefit of the globe to increase awareness and Ukraine's competitive- Membership and attracting additional interest in Ukraine ness in the global market-place; among both investors and influential policy makers. There are three key external communications activities of the Participation of the Chamber President in major interna- Chamber: tional events where the Chamber is speaking out on Ukraine's competitive advantages in order to encourage Communicating Chamber Policy priorities and success investment and ensure that Ukraine remains an impor- stories to the domestic and international media; tant foreign policy priority. CHAMBER IN MEDIA HIGHLIGHTS

The Chamber Communications Team's priorities include the provision of access to information, resources, contacts and business support services to facilitate new investment and providing an effective platform for Networking, information sharing and achieving common goals, the Chamber actively and successfully cooperates with reliable media partners including but not limited to:

WHAT'S ON

Chamber Networking events are perceived as a valuable serv- the activities of the Chamber Committees were highlighted. ice among the Membership according to Annual Chamber The Chamber is pleased to have had such a wonderful oppor- Satisfaction Survey. In the current marketplace an effective tunity to update the international community in Ukraine on its Networking platform is crucial to build business relationships important Policy activities. and the Chamber is pleased to be a leader in providing such a platform. The Chamber is proud to continue the long-lasting Business Ukraine and beneficial cooperation with Chamber Member Telegraf Media Group's magazine What's ON Kyiv. All Chamber Networking events have been covered in the Kyiv Life section of the magazine, promoting a variety of Chamber professional events, stressing the importance of the Networking platform that the Chamber is successfully providing to its The Chamber successfully launched, together with Chamber Membership. The Chamber is thankful to What's ON maga- Member New Frontier Media Group Ltd., a new monthly zine and is looking forward to expanding the cooperation with project entitled Chamber News in Business Ukraine as an new and creative ideas. answer to the rapidly changing Ukrainian economic and political situation that requires new sources of information as well as business skills and strategies. The Chamber is Ukrainian Journal of Business and Law pleased to contribute to Business Ukraine as an informative Chamber Member Yuridicheskaya and practical English-language publication in order to pro- Practika Publishing's Ukrainian Journal vide Chamber Members and other readers with up-to-date of Business and Law ("UJBL") continued information on the Chamber Policy, Advocacy and Lobbying its cooperation with the Chamber in related activities and other targeted analytical business 2008. The Journal's readers include related information, comprehensive overview of events and managers and lawyers of leading inter- services provided by the Chamber to Members. Business national and Ukrainian companies; visi- Ukraine is a weekly magazine in English with a print run of tors and employees of foreign 25,000 copies that is distributed throughout Ukraine to key embassies in Ukraine; Ukrainian decision makers in both business and politics. The Chamber embassies abroad, representatives of is pleased that the publication has been produced in associ- international organizations; members of leading business asso- ation with Chamber Members Winner and Kyivstar. ciations, airlines, participants of trade and industrial exhibitions and conferences. Every issue of UJBL in 2008 had a Chamber News page, where

28 CHAMBER EXTERNAL COMMUNICATION ACTIVITIES continued... CHAMBER AS AN OPINION LEADER Over the years the Chamber has established positive relation- The Chamber Board of Directors and Policy Team continued to ships with international and domestic media outlets operating in be involved in a proactive dialog with many Ukrainian State Ukraine. Mr. Zukoski is often approached during times of both officials ensuring that the Membership receives value added prosperity and growth as well as times of political and financial tangible and successful advocacy solutions. Throughout the turmoil with a request to provide professional and unbiased year the Chamber worked closely with the Foreign Investment feedback on what the strategic and institutional investors are Advisory Council under the President of Ukraine. The Chamber thinking and how issues will impact the internationally oriented Policy team was actively involved in different Public Councils investment community. The issues raised vary and Mr. Zukoski under the Prime Minister and other Ministries, in the Expert remains a reliable partner for reputable media resources. Councils organized by the Parliamentarian Committees.

The Chamber is pleased to be working with and to be quoted by the following international media:

Reuters Group Limited is a British based news service and former financial market data provider that provides reports from around the world to newspapers and broadcasters. News reporting once accounted for less than 10% of the company's income. Its main focus was on supplying the financial markets with information and trading products.

The Financial Times (FT) is a British international business newspaper. It is a morning XVIII Economic Forum in Krynica, Poland – daily newspaper published in London. The “Davos of Eastern Europe” periodical is printed at 24 sites. Its main rival as a daily financial newspaper is the New York World Economic Forum's Annual Meeting of the New City-based Wall Street Journal, which also Champions 2008 in Tianjin, the People's Republic of China publishes several international editions. XVIII Economic Forum in Krynica, Poland ("Davos of Eastern Europe") and others.

The American Chamber of Commerce was pleased to be invited to participate in the XVIII Economic Forum in Poland Chamber has partnered with Interfax Ukraine and finds this in September, 2008. As one of the most prestigious events media source both powerful and reliable in disseminating in Central and Eastern Europe each year the Economic important Chamber policy priorities. Information ran through Forum brings together representatives from more than 60 Interfax immediately reaches all Ukrainian media. The Interfax- countries - from Europe, North America and Asia. Ukraine News Agency — a company belonging to the international group Interfax Information Services — has been a Mr. Jorge Zukoski, Chamber President, participated in two provider of information in the political and economic informa- panels during the event as a moderator for a Corporate tion market of Ukraine since 1992. Social Responsibility (CSR) panel where the theme of the panel was highlighting Corporate Social Responsibility as As an Opinion leader the American Chamber of Commerce modern instrument of risk management that is perceived actively supports and promotes international forums and in the Global Environment differently depending on eco- conferences organized by leading international institutions nomic development, political culture and role of civic which promote Ukraine and its Competitiveness on the society in every specific region. global market place. In 2008 the Chamber participated in the following meetings, events: The Chamber President also participated as an expert pan- Second Business Roundtable with the European elist highlighting Ukraine's Investment Potential. The Commission - Securing Europe's place in the changing Investment panel was moderated by Mr. Ihor Mitiukov — global economy in Brussels CEO, Morgan Stanley Ukraine and former Minister of European Council of American Chamber of Commerce Finance. Mr. Mitiukov shared his vision regarding invest- ("ECACC") Briefing in Brussels ment opportunities and then turned the floor over to Mr. Adam Smith Ukrainian Investment Summit Anatoliy Kinakh — President, of the Ukrainian Union of Adam Smith Ukraine Insurance Forum Industrialist and Entrepreneurs, a long time political insider

29 CHAMBER EXTERNAL COMMUNICATION ACTIVITIES continued...

gious group, were gathered and briefed on the upcoming Annual Meeting agenda and format.

During the Annual Meeting of the New Champions, Chamber President, Jorge Zukoski, was invited to attend a private cross-industry dialogue about the Future of the Rule of Law in Business which brought together leading experts from both business and NGOs to discuss and develop recommendations on how the rule of law impacts companies operating in developing economies and how rule of law can CEO panel at the Adam Smith Energy Forum in Kyiv chaired be strengthened in these markets. by the Chamber who touched upon areas where Ukraine needs to further Adam Smith Conferences recently convened the Ukrainian implement reforms to be more competitive in attracting Energy Forum to bring together interested parties in the investment in the future. Jorge Zukoski then discussed Ukrainian energy sector - key government decision-makers Ukraine's comparative and competitive advantages and and regulators, top executives from the leading domestic highlighted sectors of the economy that had successfully companies, current and potential strategic investors and attracted foreign investment over the years. respected analysts, commentators and financiers. The three day event highlighted many issues and opportunities for The American Chamber of Commerce in Ukraine was both upstream and downstream players in the oil and gas pleased to continue cooperating with the World Economic sector as well as looking at dynamics in electricity genera- Forum through promoting of the New Champions meeting tion and distribution both in the traditional spheres as well held in Tianjin, the People's Republic of China in 2008. as new 'green' generation possibilities. Chamber President, Unveiling a bold new initiative of the World Economic Jorge Zukoski, moderated a session entitled "Opportunities Forum Community comprising the 1,000 foremost global For Exploration & Production in Ukraine" and chaired an enterprises, Klaus Schwab, Founder of the World Economic interactive CEO discussion. Summarizing the event, the Forum, announced the creation of a new community of fast- Chamber President said: "The Adam Smith Energy Forum growing companies designated to join the ranks of the glob- was held at an important time as the leadership of Ukraine al multinationals in the next 5 to 10 years. The project was must take the initiative and focus on developing a legislative launched in 2007 and continued this year. and regulatory framework that allows the attraction of much need investment and cutting edge technologies to On June 24, the Chamber was pleased to organize a recep- ensure that Ukraine becomes more energy independent in tion at the Hyatt hotel in Kyiv hosted by Grant McKibbin, the future. This is a stated goal of major policy makers and Head of Membership Development for the Centre for to realize energy security, much needs to be done in regards Global Growth Companies and Jorge Zukoski, the President to implementing a reform agenda in this sphere. Gatherings of the Chamber. During this reception leading Ukrainian like this help to reiterate the need for the reform agenda to companies, which qualified for inclusion into this presti- be developed and put into place." INFORMATION SUPPORT

The American Chamber of Commerce is pleased to actively forums for senior executives seeking new insights into strate- support and promote international forums and conferences gic issues. These meetings include industry conferences, man- organized by leading international institutions which pro- agement events and government roundtables held around mote Ukraine as an investment destination and provide par- the world. Each meeting organized by Economist Conferences ticipants with access to decision makers both within the delivers objective and informed analysis. The meetings pro- business community and among policy makers. vide unusually high-level forums where senior executives can gain insights, exchange views and compare strategies. Adam Smith Conferences and the Chamber have enjoyed a longstanding history of successful cooperation and the Chamber Point Carbon is a world-leading provider of independent is pleased to support and participate in their well organized high news, analysis and consulting services for European and glob- quality events. The Chamber is looking forward to continue al power, gas and carbon markets. The Chamber has been working with Adam Smith Institute in their upcoming III Annual working with Point Carbon on Climate Change and Business Banking Forum, III Annual Ukrainian Real Estate Forum, III Conferences. The main aim of the event was to provide Annual Retail Summit, V Annual Ukrainian Investment. insight as Ukraine is one of the most promising carbon markets in Eastern Europe and to focus on the United Nations Economist Conferences, a division of the Economist Framework Convention on Climate Change (UNFCC) and Intelligence Unit, is the leading provider of international Ukrainian's perspectives in regards to this document.

30 ADVOCACY AND LOBBYING ACTIVITIES

UKRAINIAN GOVERNMENT RELATIONS The Chamber's philosophy and operations in Ukraine have and investment community while they are engaged in a joint always been guided by the simple symbiotic relationship: activity to continue necessary market reforms. only in a prosperous, strong and favorable environment will businesses be able to grow, hire more employees, find new Throughout the year the Chamber Membership was provid- customers, vendors and partners, which lead to increased tax ed with a wide variety of opportunities to engage in a posi- payments, information and technology dispersion, and tive dialog with key decision makers within the Ukrainian greater benefit to Ukraine. Throughout the year the Chamber Government through Chamber Committee and Working was involved in many important activities aimed to continue Group Meetings, General Membership Meetings, "In-Focus" necessary reforms and changes, which ultimately assist the Meetings and Business Luncheons. overall strengthening of the Ukraine's competitiveness. In 2008 the Chamber participated in many important events In 2008 the Chamber Board of Directors and the Policy and hosted meetings with many Ukrainian State officials. Team continued to be involved in a proactive dialog with There are names of some of them who addressed and com- many Ukrainian State officials ensuring that the municated with the Chamber Membership: Membership receives value added tangible and successful advocacy solutions. This year has brought many challenges not only for the Ukrainian governmental decision makers but also to the private sector and non-governmental community driving all of us to learn how to be relevant and effective in this new environment. The Chamber worked diligently to establish new relationships as well as to develop existing ones with the top figures of both executive and legislative branches of power. Cabinet of Ministers of Ukraine, many Ministries and State Committees, selected Committees of the Ukrainian Parliament, Secretariat of the President of Ukraine, city State Regional Administration - Chamber “In-Focus” Meeting with Mr. Mykola Onishchuk, the Chamber was working closely with all of them address- Minister of Justice of Ukraine ing those issues and problem areas that generated the Mrs. Oksana Slyusarenko, Deputy Minister of Economy greatest concern from the Membership and which the of Ukraine Chamber was able to positively influence through active Mr. Sergiy Lekar, Deputy Head of the State Tax and targeted advocacy and lobbying efforts. Administration and other representatives of the State Tax Administration The Chamber is striving to adapt to the new political and advo- Mr. Sergiy Chekashkin, Deputy Head of the State Tax cacy environment by strengthening its Policy Team, the Administration of Ukraine Chamber Committees and Working Groups, while at the same Mr. Mykola Onishchuk, Minister of Justice of Ukraine time introducing new and innovative value-added benefits for Mr. Ivan Makarenko, Deputy Minister of Environmental the Membership, including organization of more focused busi- Protection of Ukraine ness Networking events, "In-Focus" meetings and Knowledge Mr. Mykola Kostrov, Head of the State Ecological Inspection Seminars to further assist our Members success in this chal- Mr. Dmytro Mormul, Head of the State Geological Service lenging environment.

In 2008 the Chamber addressed Cabinet of Ministers, Presidential Secretariat, and Parliament of Ukraine with many important issues including but not limited to: corporate gover- Watch video with nance, banking and financial services reforms, tax reform, the Vice Prime Minister of Ukraine EURO 2012, infrastructural investments, private public partnership and mechanisms of concession, IPR-related policy, customs clearance procedures, land plot allocation procedures, tender practices, agricultural sector and land reforms, the WTO accession, etc. The Chamber has worked diligently to raise awareness of "The Competitiveness of Ukrainian Economy" among major stakeholders as the important con- Mr. Hryhoriy Nemyrya, cept to be considered by appropriate governmental structures Vice Prime Minister of Ukraine

31 UKRAINIAN GOVERNMENT RELATIONS continued...

Mr. Hryhoriy Nemyrya, Vice Prime Minister of Ukraine Mr. Bohdan Danylyshyn, Minister of Economy of Ukraine, Mr. Viktor Panteleenko, Deputy Minister responsible for investment and innovation policy, Mr. Yuriy Vitrenko, Deputy Minister of Economy of Ukraine, Mrs. Natalia Boytsun, Deputy Minister responsible for the bilateral trade relationships, Mrs. Iryna Kryuchkova, Deputy Minister of Economy of Ukraine and Mr. Vyacheslav Tsymbal, Director of Department of Cooperation with World Trade Organization Mr. Yuriy Prodan, Minister of Fuel and Energy of Ukraine, Mr. Oleh Bugayev, First Deputy Minister of Fuel and Energy and Mr. Burzu Aliev, Deputy Minister of Fuel and Energy, responsible for cooperation with investors Mr. Borys Sobolev, Deputy Secretary of the National Security Mr. Stanislav Horbatovych, Head, Department on land and Defense of Ukraine market and assessment of the State Committee for Land Resources. Groups to be established, the Working Groups' leadership, Mr. Vadym Karasiov, Institute for Global Strategies, certain priority issues to be addressed, coordination mech- Mr. Volodymyr Fesenko, Center of Political Researches anism between Prime Minister and the Government from "Penta" and Mr. Kost Bondarenko, Kiev Institute of one side and investor community from another, etc. The Governing Problems Chamber regularly disseminated appropriate information Mr. Borys Sobolev, Deputy Secretary of the National and updates, and collected interest and input from all inter- Security & Defense of Ukraine ested Members. Mr. Pavlo Kostenko, Head of the Parliament Committee on Family, Youth and Sport As a Member of the Investors Council the Chamber contin- Mr. Rostyslav Karandeev, Deputy Minister of on Family, ued to move the agenda forward and was actively involved Youth and Sport into formation of the Working Groups under the Ministries Mr. Volodymyr Zharov, Deputy Head of the State created according to the decision of the Investment Council. Department for Intellectual Property Mr. Jacques Mounier, Co-Chair of the Chamber Banking and Mr. Ihor Shestak, Head of the Department on Telecom- Financial Services Committee was elected the Co-Chair of munication Development, Ministry of Transport and the Working Group on Financial and Banking Policy estab- Communications lished under the Ministry of Economy of Ukraine. Moreover Mr. Oleh Gavryliuk, Head, Department on EURO 2012, the Chamber has included representatives of Chamber Ministry of Interior Affairs of Ukraine Members Companies into the following Working Groups: Mrs. Valentyna Zavalevska, Deputy Minister of Agrarian under the Ministry of Transport and Communications, Policy of Ukraine under the Ministry of Regional Development and Mr. Oleh Shevchuk, Verkhovna Rada Deputy, 1st Deputy Construction, under the State Committee for Technical of the Committee on Social Policy and Labor Regulations and Consumer Policy, under the State Mr. Oleh Prozhyvalskiy, Deputy Minister of Transport Commissions on Securities and Stock Market, under the and Communications, Director of State Department on State Agency on Land Resources, under the Ministry of Communication and Informatization Agrarian Policy, under the Ministry of Finance. Mrs. Tetyana Kondratyk, Deputy Minister of Family, Youth & Sport of Ukraine. A new policy activity of the Chamber was started in April 2008 when the Chamber Policy Team was invited to participate in The Chamber also continued to work closely with the the work of the Expert Councils organized by the Foreign Investment Advisory Council under the President Parliamentarian Committees: Committee on Industrial and of Ukraine contributing proactively into the work aimed to Regulatory Policy and Entrepreneurship and Committee on gather foreign investors' recommendations in a specific Tax and Customs Policy. Since that time the Chamber Policy industry sector. In spring 2008 the Cabinet of Ministers Team has regularly participated in the Councils' meetings dis- Investors Council started its activity where the Chamber cussing draft legislation related directly to the investment together with its fellow Members and partners maintained environment and business operations in Ukraine. active cooperation with appropriate Ministries and State Committees. From the very beginning of the Council's activ- The Chamber Policy Team regularly took part in the work of ity the Chamber together with other Members of the the Entrepreneurs Council under the Prime Minister, which Coordination Group chaired by Minister of Economy resumed its activity in 2008. The forum is aimed to gather Bohdam Danylyshyn discussed and developed the frame- associations representing small and medium size Ukrainian work of the Councils activity, i.e. the format of the Working businesses, and the Chamber has agreed with the Council

32 UKRAINIAN GOVERNMENT RELATIONS continued... leadership to work with this institution as a partner provid- The Chamber Policy Team together with fellow NGOs oper- ing feedback on appropriate legislation based on the ating in the ICT sector discussed with the Minister of Members' recommendation and interest. Deregulation of Transport & Communication Mr. Josyp Vinsky and Deputy business activity and reforms in the sphere of technical reg- Minister Mr. Leonid Netudykhata. Participants brought up ulation are among the main areas of the Chamber's interest. important issues for industry players of the telecommunica- Currently there is a dialog going on between selected tion and IT sectors, and stressed necessity for a regular dia- Chamber Members and the Head of the Council regarding log between the State authorities, regulators and private the State Tax Administration cross-check procedures. sector, and agreed on certain areas that require legislative work to fix existing problems and to outline a modern legal In 2008 the Chamber continued to maintain an active and framework, which would serve as a solid base for the indus- effective dialog with Governmental authorities through the try activity and future development. network of Public Councils operating under the Ministry of Finance, Ministry of Foreign Affairs, Ministry of Healthcare, Throughout 2008 the Chamber was working diligently on all Ministry of Education and Science, Department on Intellectual the aspects of the EURO-2012 Project's preparation and it Property Rights, State Committee for Technical Regulation continued to update all interested Chamber Members on and Consumer Policy, State Committee for Regulatory Policy many opportunities available for foreign and national and Entrepreneurships, State Tax Administration, State investors. Chamber President, Jorge Zukoski, and the Policy Customs Service, the State Property Fund, the Ministry of Team took part and spoke at special meetings, conferences Regional Development and Building of Ukraine and the State and seminars devoted to the preparation of the EURO 2012 Agency for Investments and Innovations of Ukraine. In 2008 project in Ukraine and many of these events were chaired by the Chamber began its work in the Public Councils under the the appropriate leaders of the Cabinet of Ministers and Ministry of Family, Youth and Sport. Secretariat of the President of Ukraine. The Chamber web-site now contains a special EURO 2012 corner with presentations The Chamber Policy Team participated regularly in the work of of the Governmental programs and legislation updates relat- the Expert Council under the State Commission for Securities ed to the EURO 2012. One of the most important events in the and Stock Market following all changes and developments framework of the EURO 2012 preparation was the Investment and updated our Membership accordingly. The Expert Forum "Ukraine: Investment Infrastructure: EURO 2012" held Council's agenda has been focused for a long period of time on May 17 in Kyiv before the EBRD Annual Meeting. on the preparation of the Draft Law on Joint Stock Company. Thorough 2008 specialists of the Chamber's Joint Stock The Chamber Policy Team closely monitored and participat- Company (JSC) Working Group, Working Group on Illegal ed in the work of the Ministry of Transport and Raider Attacks and the Chamber's Legal Committee in con- Communications as well as Ministry of Economy on elabo- junction with the best experts in the sphere of corporate gov- ration draft legislation aimed to develop concession mech- ernance legislation worked diligently to advocate for the anisms. The Chamber participated within different events adoption of the Law on Joint Stock Companies. and discussions gathering the legal experts, State authorities and media to discuss the concession mechanism and The Chamber continued the ongoing dialog with the State has disseminated appropriate pieces of legislation among Tax Administration within the work of its Public Council and Members requesting appropriate feedback. In summer the Chamber Tax Committee activity. Also, the Chamber con- 2008 the Chamber Policy Team and Chamber Membership tinued its cooperation with the Public Council of the Ministry were enga-ged in the work of Finance, in March the Chamber was also invited to attend of the special Working the Ministry of Finance's Collegium meeting devoted to the Group under the Deputy results of the first 100 days of the Ministry's work in the new Minister of Transport and Government where many important issues on behalf of the Communi-cations on cre- Membership were possible to address and discuss. ation of the Draft Law on Concessions for motor The Chamber continued to advocate on the further devel- roads. The pro-cess of the opment of the Information & Communication Technology Draft Law pre-paration was Sector in Ukraine. The Chamber Deputy Director Oksana moved forward thanks to Panchuk together with other fellow organizations working the joint efforts of the in the ICT sphere (Internet Association of Ukraine, Ministry and the business Association of Information Technology Enterprises of community including the Ukraine and others) participated at the discussion of the active enga-gement of the State Program of the Cabinet of Ministers of Ukraine in Chamber. Mr. Sergiy Lekar, regards of its section on "Transport-Road, Communication Deputy Head of the State and Informatization" Chapter initiated by the State A lot of attention was ded- Tax Administration Department on Informatization and Communication of the icated to the Law on cus- of Ukraine Ministry of Transport & Communication. toms tariffs developed and

33 UKRAINIAN GOVERNMENT RELATIONS continued...

approved by the Ukrainian Advantages of the New Customs Code" that included the Parliament in the context Chamber Membership and decision makers within the State of the WTO accession con- Customs service and Public Council Service of Ukraine. The sidering the Ukraine's com- Chamber understands that a new Customs Code will positively mitment to the WTO rules impact many of our Members, if properly drafted and imple- and practices on implemen- mented, and will further assist in a proper preparation of this tation of new customs tar- document together with the Customs Working Group aiming to iffs during the customs help strengthen the Ukraine's competitiveness in this highly clearance procedures. important area. The Chamber Policy together with the Customs Policy Working Group discussed many important issues: more At the end of May the frequent checking during the customs clearance of cargo includ- Mrs. Iryna Kryuchkova, Deputy Chamber together with ing import and transit cargo; 100% checking of the cargo; dou- Minister of Economy of Ukraine Members operating in the bling examinations of the same cargo by several controlling and area of trade (wholesalers, law-enforcement services; confusions with customs codes, etc. retailers, etc.) was actively involved in lobbying the veto on the and as a result the entire customs clearance procedure takes Law "On Regulation of Realization of Separate Socially-Significant more time and effort for the Chamber Membership. Based on Food Products" supported earlier by the Parliament and which the results of the meeting the Chamber had summarized and generated tremendous amounts of concern from both Chamber appropriately addressed the State Customs Service. Member companies operating in the wholesale and retail trade sectors as well as agricultural producers and logistic operators. Not-finished land reform was also among the Chamber policy The Chamber Policy Team in conjunction with many partner priorities; in April the Chamber Policy Team participated in the organizations who represented industry sector associations Round Table discussion devoted to the consideration of new leg- jointly addressed the President stressing the danger of this piece islation on the land market in Ukraine organized by the of legislation and many violations to other rules and regulations Verkhovna Rada Committee on Agrarian Policy to discuss the existing on the market. As a result of these joint efforts the Law two Draft Laws "On Land Market". The Chamber considered and was vetoed and returned to the Parliament. signed a joint letter addressing Prime Minister of Ukraine with a list of propositions regarding the reforming of the waste man- In 2008 the Chamber Policy Team proactively advocated agement system in Ukraine: from the position previously dis- and supported the adoption of the Governmental cussed and agreed as one to suit interests of the business com- Resolution starting the so-called "Regulatory Guillotine" — munity. The work on this issue continues to be accomplished by a quick deregulation of the legislation in three very impor- the Chamber's Waste Package Management Working Group. tant spheres for businesses operating in Ukraine: land usage, construction and tourism. The Chamber was pleased Also, the Chamber Policy Team continued tradition to take to see its lobbying efforts transformed into the Cabinet of part in the work of the Presidential Forums "State and Ministers Resolution # 824-p dated June 11th, 2008. State Business are Partners" chaired by President of Ukraine Viktor Committee for Land Resources, Ministry of Regional Yushchenko with participation of Prime Minister Yulia Developments and Constriction and Ministry of Culture and Tymoshenko and Head of the Parliament Arseniy Yatsenyuk. Tourism have created special working groups assembling In preparation of such important events the Policy Team representatives of business and experts. The aim of their Members assisted the Secretariat of the President and State work is to view all regulatory acts of these Ministries regu- Committee on Regulatory Policy & Entrepreneurship with the lating business relationships between the State and busi- agenda items of the event as well as participated in round ness entities regarding permissions issuing, licensing and tables held under the auspices of the forums: deregulation state control. As a result of this work all regulatory acts will and technical regulation (certification policy) - as these areas be divided for three groups: 1) business friendly 2) needed were actively developed by the Chamber Policy Team. to be amended and 3) needed to be abolished. The Chamber has also ensured participation of the Chamber Again, we would like to thank all our Members for their proac- Members' representatives in each of the established tive position, continuous support and regular involvement in Working Groups. The Chamber welcomes this decision of many of the policy issues, which the Chamber addresses via its the Government and perceived its implementation as a real vast network of contacts to appropriate Ukrainian State offi- opportunity to improve the Ukrainian business climate and cials for its resolution and solving. Based on our mutual coop- create more transparent and effective relationships in the eration and joint work the Chamber continues to develop and spheres of land usage and construction which unfortunate- adapt in this challenging environment adding value to your ly, is very problematic for business. organization and assisting by being a "Key to Your Success".

One of the important pieces of legislation and area of the The Chamber Board of Directors and Administrative Team Chamber policy work is the Draft Customs Code and customs appreciates the dedication of the Membership and vote of clearance procedures. The Chamber was hosting special confidence and pledges to continue to stand by our Members events entitled "Understanding the Challenges and through what will be most interesting times that lie ahead.

34 ADVOCACY AND LOBBYING ACTIVITIES continued...

UNITED STATES GOVERNMENT RELATIONS

David A. Merkel, Deputy Assistant Secretary for European and Eurasian Affairs at the U.S. Department of State; "In-Focus" Meeting and special "Insiders View" event dedicated to the Georgian-Russian conflict with U.S. Ambassador William B. Taylor; meeting with the Kennan Institute Director Blair A. Ruble; WTO Briefing with Mr. Douglas Kramer, Economic Counselor of the U.S. Embassy in Ukraine; and many others.

In October the Chamber together with its interested Members and partners took part in the Ukrainian-American Business Forum held in the framework of the newly established Ukraine-U.S. Council on Trade & Investment. John K. Veroneau, Deputy U.S. Trade Representative (USTR) and Chamber Meeting with U.S. Secretary of Commerce Mr. Carlos M. Gutierrez Minister Bohdan Danylyshyn will co-chaired the new Council on behalf of national sides. Since 1992 the American Chamber of Commerce in Ukraine has enjoyed a stable and successful history of close cooper- As an active Member of the European Council of American ation with the United States Embassy in Ukraine as well as Chambers of Commerce ("ECACC"), which unites Chambers from various U.S. government agencies and lawmakers in all of the European countries, the Chamber participated in April in Washington D.C. This close working relationship has bene- the annual meeting in Washington DC where ECACC Members fited our Member companies and many partners by provid- had opportunity to meet with the U.S. officials and U.S. Chamber ing access to information and input into a wide variety of of Commerce representatives discussing many policy and eco- important policy decisions and initiatives in regards to nomic- and investment-related issues aimed to further develop Ukraine. The Chamber and the Chamber Board of Directors trade and investment relations in these countries. held meetings with U.S. Ambassador William B. Taylor, with representatives and leadership of the U.S. Foreign The Chamber traditionally served as information partner to Commercial Service, with variety of business and govern- events organized by its U.S. partners and held in the U.S. ment delegations of U.S. law and policy makers to provide examples include: the Conference for business and NGO relevant input into the current business environment. leaders entitled "Private Sector - NGO Cooperation to Combat Human Trafficking in Ukraine", which was organ- The Chamber was pleased to support and host the first visit ized by USAID and the International Organization for to independent Ukraine of a U.S. Secretary of Commerce in Migration (IOM) Mission in Ukraine in June. June 2008. During the visit Secretary Carlos Gutierrez met with the Chamber Board of Directors and Membership further highlighting the commitment of Washington DC to the business community operating in Ukraine. During the visit the Chamber was pleased to be an active participant during the whole series of meetings including a round table on trade and investment policy hosted by Minister of Economy, Bohdan Danylyshyn, as a part of the program of the visit. General Membership Participants included the delegation's representatives from Meeting with the U.S. side, the Chamber Board of Directors, Head of the U.S. Ambassador Customs Service, Head of the State Tax Administration and William B. Taylor many other Ukrainian State officials, which gathered to discuss investment policy and issues that As in the past the Chamber, Chamber IPR Committee and U.S. required more attention from the gov- Embassy have focused on a variety of issues surrounding intel- ernmental side and areas that needed lectual property rights in Ukraine. For the second year the Watch video with to be considered to further improve Chamber has been cooperating with the U.S. Chamber of U.S. Secretary of Commerce investment climate in Ukraine. Commerce engaging the Membership within the framework of the Coalition Against Counterfeiting and Piracy (CACP) - a global Throughout the year the Chamber held many meetings with initiative to effectively prevent the global threat of counterfeit- different government and policy-related organizations from ing and piracy on the U.S. economy, the global business commu- the U.S. and to name some of them: meeting with Paul Dyck, nity, and consumers through a two-part strategy of education Deputy Assistant Secretary of Commerce; J. Frank Mermoud, and increased detection and enforcement. The CACP is a coali- Special Representative for Commercial and Business Affairs at tion of several hundred businesses and associations committed the Department of State; Christine Lucyk, Senior Policy Advisor to increasing the understanding of the negative impact of coun- on Ukraine, U.S. Department of Commerce; meeting with terfeiting and piracy to health, safety, and the economy.

35 ADVOCACY AND LOBBYING ACTIVITIES continued...

EUROPEAN UNION RELATIONS

ket economy in the entire region of Central and Eastern Europe; the Economist Conferences' Second Business Roundtable with the European Commission in Brussels; the Adam Smith Conferences' 4th annual Ukrainian Investment Summit in London; the Economist - Second Business Roundtable with the European Commission - Securing Europe's place in the changing global economy in London; the EuroBusiness Advisory's EuroLawyer 2008 in London; the Europaproperty.com's fifth annual "Time to Invest Ukraine" conference in Kyiv; the Alternative Investment Summit (AIS in London; the European Convention's Infrastructure Investment and Private Public Partnership (PPP) Finance Forum in Kyiv; the UkrAgroConsult's Chamber hosted the EBRD Annual Meeting Business Cocktail "Growing Inputs Market: Risks and Prospects for CIS coun- Reception tries" Conference; the joint conference of the Academy of For many years the Chamber has been an active Member of Medical Sciences of Ukraine, Ministry of Healthcare, the European Council of American Chambers of Commerce National Medical Academy of Postgraduate Education, ("ECACC"), which unites Chambers from all of the European Cardiovascular Surgery National Scientific Research Union and recent accession countries, and continues to utilize Institute and the Scientific oncology and cardiology produc- the ECACC network to benefit the Membership as well as to tion center "Max-Well" in Boryspil; the Adam Smith support strengthening of Ukraine's investment image. Conferences' Ukraine Energy Forum held in Kyiv; the Through this particular communication channel the Chamber Financial Times Global Events' - Ukraine Capital Markets also assists Ukraine's State authorities on their way to inte- Forum in London; the Annual International Investment grate the Ukrainian economy into the larger global economic Summit of Donetsk region initiated by Deloitte, Ernst & community. In 2008 the Chamber President often visited Young and Altera Finance companies and supported by Brussels and together with ECACC Members and colleagues at Donetsk Region Council, Donetsk Region State the European Commission worked to protect and serve the Administration and Donetsk City Council; the Economist Members interests within the expanding European Union. Conferences' Fourth Business Roundtable with the This active relationship allows the Chamber to address Government of Ukraine in Kyiv; the annual Regional Energy Member's business interests at the European Commission in Forum - a joint event of the American Chamber of Brussels as well as provide timely and relevant input regarding Commerce in Hungary, American Chamber of Commerce in Ukraine as it strives towards further Euro-Atlantic integration the EU, American Chamber of Commerce in the Slovak and development of a free trade agreement with the EU. Republic, American Chamber of Commerce in Czech Republic, American Chamber of Commerce in Poland and The Chamber participated in the EU Commission special the American Chamber of Commerce in Ukraine; the meeting discussing the EU-Ukraine Action Plan's progress Climate Change & Business conference in Kyiv; the and summarizing recommendations from the Ukrainian and Investment Congress 2008. "Ways of attracting investments foreign side in regards to those problem areas that needed into development" in Kyiv, etc. to be addressed again and to be finalized before a new agreement is prepared and comes into force. Chamber The Chamber continues to hold meetings with investors com- President, Jorge Zukoski, together with CEOs of fellow ing to Ukraine from European countries as well as providing Member companies participated in a special series of inter- insight into the Ukrainian economic and investment climate to views taped for Ukrainian events, held as a part of the World Economic Forum in Davos, talking about Ukraine's investment potential, economy and opportunities.

In 2008 the Chamber provided support informing the Membership and partners about a variety of events held in Ukraine and in European countries related to economic and investment issues. Examples of events that the Chamber supported include but are not limited to: the Chamber co- hosted the EBRD "Transition Report 2007" presented by Alan Rousso, the EBRD Director of Strategy and Analysis from the London Headquarters, covering assessment of the economic and social conditions and progress towards mar- ECACC Transatlantic Business Conference

36 ADVOCACY AND LOBBYING ACTIVITIES continued... a variety of high-level trade and economic missions. For many specificity of the investment projects being implemented by of these events and meetings EURO 2012 and the variety of the Chamber Members. investment projects were among the main topics of the discussion. This year the Chamber spoke, met and participated with This year the European Bank for Reconstruction and representatives of the Embassy of Austria, Embassy of Japan, Development's ("EBRD") annual meeting was held in Kyiv in Royal Embassy of Belgium, Embassy of the Kingdom of the May. The Chamber supported and participated in many of the Netherlands, Embassy of Republic of Argentina, and Embassy events, conferences, round tables and exhibitions held as a of Switzerland, Embassy of the Hellenic Republic, Embassy of part of this important event. The "Ukraine: Investment the United States of America, and others. For the first time, the Infrastructure: EURO 2012" Investment Forum was one of Chamber met and provided updates to the Malta Business them where Jorge Zukoski, Chamber President, participated in Delegation visiting Kyiv. Experts of German Advisory Group a panel addressing hundreds of guests from many countries who visited Ukraine in the end of the year were able to discuss including Europe, North America, Asia, etc. on the importance with the Chamber economic and political situation as well as of Ukraine as an investment destination. INTERNATIONAL, DIPLOMATIC, DONOR COMMUNITY AND UKRAINIAN PARTNERS RELATIONS

1,000 foremost global enterprises, Klaus Schwab, Founder and Executive Chairman, World Economic Forum, announced the creation of a new community of fast-growing companies destined to join the ranks of global multinationals in the next 5 to 10 years. The Chamber is pleased to have developed a strategic partnership with the World Economic Forum and looks forward to continuing to be involved in similar activities in the future leveraging our local knowledge and networks into the large global community providing additional positive exposure for Ukraine and linkages for our Members to assist in their success.

Chamber “Insiders View” Meeting on the global financial crisis – The Chamber continued to maintain contacts and hold Perspectives from the IFIs (EBRD, IMF, World Bank) meetings with leaders of a variety of organizations and institutions to promote the Ukraine's investment image in the In 2008 the Chamber continued to work strengthening world; the Chamber is a reliable partner and cooperates on value added and beneficial relationships with many of the a regular basis with the Ukrainian State Agency of Embassies in Ukraine, Ukrainian industry-sector associa- Investments and Innovations, Ukrainian Center for Foreign tions and other partners to assist the Membership with the Investment Promotion, European Bank for Reconstruction resolution of critical issues impacting their businesses and and Development, World Bank, International Monetary strengthening of policy initiatives. During the year the Fund, etc. Many of the Chamber partners - Ukrainian NGOs Chamber has met with Ambassadors and senior officials and associations also cooperate with the Chamber and its from many Embassies briefing them on the most important Committees on a regular basis. The UN Global Compact issues facing the international business community. The Network continues to be part of the Chamber's activity Chamber assisted its partners from Embassies to publicize together with its CSR Committee. and disseminate announcements on educational events as well as conferences hosted by them. Considering the relevance and importance of the recent developments in the global financial markets as well as the In September, Chamber President, Jorge Zukoski, participat- specificities of the Ukrainian internal political and eco- ed in one of the largest investment Forums in Eastern nomic situation, the Chamber hosted special sessions, cre- Europe - the XVIII Economic Forum, which is traditionally ated a new corner on the official website, organized inter- held in Krynica, Poland, where he also moderated one of views and monitored closely all relative developments the round table discussions. Later in September the inside and outside of Ukraine to provide insights to the Chamber was among the information partners and Jorge Membership through in-depth discussions of many impor- Zukoski participated in the 2nd Annual Meeting of the New Champions of the World Economic Forum's Annual Meeting of Global Growth Companies in China. A recent initiative of Watch video of the Chamber “Insiders View” Meetings the World Economic Forum Community, comprised of the on the global financial crisis

37 ADVOCACY AND LOBBYING ACTIVITIES continued... tant issues with market insiders, analysts, international Football Federation of Ukraine and Ukraine Football and local experts, etc. In October 2008 when the IMF mis- International; the All-Ukrainian Forum Business and sion was in Ukraine working on a special Program to sup- Education: Inevitable Partners within the International port the Ukrainian economy the Chamber was pleased to specialized exhibition Education and Career 2008 sup- host a very special meeting inviting Ms. Ceyla ported by the Ministry of Education and Science of Pazarbasioglu, Head of the IMF Mission, Mr. Balazs Horvat, Ukraine; the Altera Finance Investment Group's and NYSE IMF Resident Representative in Ukraine, Mr. Andre Euronext's International Conference NYSE Euronext: The Kuusvek, Director, Ukraine - European Bank for European Platform for Ukrainian Listings in Donetsk; the Reconstruction and Development, Mr. Martin Raiser, Times Media Group's Forum: Government regulation of Country Director Ukraine, Belarus and Moldova Europe the land resources market and financing of the commer- and Central Asia Region, the World Bank to discuss the cial real estate projects in Kyiv; the Yuridicheskaya global financial crisis and situation in Ukraine. Practika's ("Legal Practice Weekly") second charitable ceremony of Legal Awards; the Annual International Summit PR Days in Ukraine Image Technologies And Investments, and many others. This type of work, as well as other initiatives throughout the year, the Chamber successfully engaged many partner organizations including but not limited to Ukrainian tobacco association, Ukrainian packaging association, Ukrainian Chamber of Commerce & Trade, Association of Pharmaceutical Research and Development, etc.

The Chamber is an active member of the International Trade Club. This non-profit organization is based in Kyiv and is organized with the assistance of the Ministry of Economy of Ukraine. The Trade Club consists of representatives of Mr. Wen Jiabao, Premier of the People’s Republic of China more than 60 countries. This year was marked for the Club at the World Economic Forum Meeting of New Champions 2008 by many events devoted to the upcoming EURO 2012. in Tianjin, China Members were able to hear directly from mayors of Ukrainian cities, hosts of the tournament, and from many In 2008 the Chamber continued to serve as a reliable, appropriate Ukrainian State officials including Ministry of respected and important information partner of many Economy, State Agency of EURO 2012, Ministry of Family, major strategic investment forums, conferences and sem- Youth and Sport, and many others. Traditionally the inars aiming to improve the image of Ukraine and pro- Chamber together with many of our affiliated Embassies moting investment opportunities and addressing key visited Sumy, Kherson, Kyrovograd, Donetsk, Chernihiv and issues in the sphere of economic development and trade Kyiv oblasts. - examples include but are not limited to: Yalta Economic Strategy (YES) event Free Trade Zone: Towards the During these trips the Chamber used these opportunities to Success of the Ukrainian Project in Kyiv, Presentation of meet and establish relationships with key State Regional Ukraine's Economic Development Agenda and officials, who present their regions and inform the delega- Presentation of the Ukrainian Economic Competitiveness tion on investment opportunities as well as to update par- Report (WEF) by the Foundation for Effective ticipants on many initiatives, projects and policy work main- Governance; Black Sea Grain - 2008, the World Challenge tained by the Chamber. Also, the Chamber met with repre- in 2008: Between Weather and Politics in Kyiv; the sentatives of different enterprises that have already estab- Ukraine Human Development Report organized by United lished good relations with foreign partners and with those Nations Office in Kyiv; the Ukrainian Insurance Forum by who are looking for attracting additional foreign invest- the Adam Smith Conference in Kyiv; the Launch of the ments. All materials and information are available at the National Go Green! Campaign initiated by the United Chamber administrative offices. Nations Office in Ukraine under the auspices of Global Compact Network in Ukraine; the Ukraine in the age of Traditionally the Chamber continued to facilitate the globalization - new opportunities to access capital mar- process of issuance of legitimate Business Visas for Member kets event hosted by the International Chamber of company employees. The Chamber U.S. Express Business Commerce; the international conference Ukraine in WTO: Visa Service is based on formal arrangements and has Agrarian Business Perspectives in Kyiv; the UkrAgroCon- proven to be both highly effective and valuable services for sult's conference Growing Inputs Market: Risks and Chamber Members as well as for the Consular Section of Prospects for CIS countries in Kyiv; the conference Sport the U.S. Embassy. The Chamber also works informally with marketing: two sides of one medal, organized by Chamber many Embassies to assist our Members to secure Business Member Conference House Company along with the Visas for their key employees.

38 THE CHAMBER COMMITTEES AND WORKING GROUPS

Chamber Committees and Working Groups: your advocacy & policy tools to successful lobby for positive changes strengthening the Ukraine's competitiveness. The Committees and Working Groups enable Member organ- The Chamber Committees are standing and many of which izations to address pressing industry and sector specific policy have been active for many years. On the other hand, the related issues to all levels of appropriate Ukrainian State Chamber Membership utilizes Working Groups to focus on authorities including but not limited to the Parliamentarian specific issues and bring together Members who are experts Committees, Cabinet of Ministers and individual ministries, on that issue to develop and execute an action plan to resolve city and regional administrations etc. the problem and then disband. This structure is very effective in resolving specific issues in a short period of time.

In 2008 fifteen Committees and six Working Groups have been successfully operating under the Chamber umbrella bringing together industry leaders and sector specific company experts to develop and create advocacy and lobbying strategies to positively, proactively and effectively impact issues of interest to the Chamber Membership. The Chamber Committees and Working Groups address pressing issues that will positively impact the business environment in Ukraine from many different sectors of the economy, including, but not limited to:

Agricultural Committee IPR Committee (Intellectual Working Group on Customs Policy Banking and Financial Services Property Rights) Working Group on Certification Committee IT Committee (Information and Standardization Business Management Education Technologies) Working Group on Illegal and Training Committee Legal Committee Corporate Raidering Corporate Social Responsibility Tax Committee Working Group on Joint Stock Committee Telecom Committee Companies Fuel and Energy Committee Travel and Tourism Committee Working Group on Waste Healthcare Committee Real Estate Committee Packaging Management HR Committee (Human Resources) Toastmasters Club Working Group on Seeds

39 AGRICULTURAL COMMITTEE Co-Chairs: Oleg Samus, Suntrade S.E. / Bunge Ukraine Peter Thomson, Ukrainian Agrarian Investments LLC

The Chamber Agricultural Committee Mission is to support guest-speaker provided reasoning, backed up with rele- and promote the development of a market-based agricultur- vant figures, why the competitiveness of particular agri- al sector as a significant contributor to the overall success of cultural market segments will likely be decreased. Ukraine's economy. Meeting with Mr. Stanislav Gorbatovych, Head of Department of Land and Evaluation Activity of the State Agency on Land Resources. Main topic of discussion was recently submitted to the Parliament Draft Laws "On Land Market" (#2143, 2143-1, 2143-2). Mr. Gorbatovych focused attention of the gathered Chamber Members on the legal aspects of carrying out auctions and selling/buying of the right on rent of land plots. Meeting with Mrs. Valentyna Zavalevska, Deputy Minister of Agrarian Policy. Among raised topics were the following: fixed tax and VAT in 2009, simplification of sys- Open Chamber Agricultural Committee Meeting with tem of production control in Ukraine, subsidies for biofuel Mrs. Valentyna Zavalevska, Deputy Minister of Agrarian Policy of Ukraine manufacturing, GMO regulation, support of elevators, etc.

The Agriculture Committee is a forum to proactively address Examples of major issues that the Agricultural Committee issues within the Ukrainian agricultural industry and is open to was actively involved in include but are not limited to: all interested Members of the Chamber. The Committee's main goal includes developing the Ukrainian agricultural sector Grain Export Licensing — Committee Members have been through positive interaction with relevant policy-makers and advocating for cancellation of grain export quotas for years other stakeholders. and in 2008 after WTO accession and receiving sufficient harvest, government finally cancelled export quotas. In 2008 the Committee held regular meetings and contin- Future of Agricultural Sector after WTO accession — ued to serve as an excellent platform for topical information Committee Members supported predictability and mar- sharing, updates on harvest prospects/ results, grain export, ket rules brought by WTO in Ukraine. A number of legislative and taxation issues. Committee meetings were devoted to analyses of the new market situation and new procedures were imple- In September-October the Agricultural Committee mented with WTO accession. Members were involved in the activity of the Foreign Land Market Development — Members studied Draft Investment Advisory Council (FIAC) of the President of Laws on Land Market, which were submitted to the Ukraine's Agricultural Policy Working Group preparing a Parliament, conducted a number of meetings-discus- table of issues necessary to be considered by appropriate sions of the Drafts. branches of the Ukrainian State power. The following issues Sunflower-seed Oil Contamination Issue — Chamber and areas of improvement were included: not-finished land Members were actively involved in resolving the issue, reform in Ukraine; tax stability and predictability continues facilitating dialog both with Ukrainian Government and to be an issue; a need to harmonize the system of the State EU Commission, providing analyses of measures taken control and supervision on safety and quality of food prod- by the Government. ucts; imperfect system of certification of food products; completion of the Land Reform; development of the science-based regulatory system for the approval of agricultural biotechnology products and others.

In 2008 Chamber Agricultural Committee hosted several interesting meetings with representatives of partner organizations and government officials including but not limited to:

Meeting with Mrs. Tamara Ostashko, USAID. The meeting was devoted to analysis of consequences of WTO accession for agricultural sector of Ukraine. Also the

40 BANKING AND FINANCIAL SERVICES COMMITTEE Co-Chairs: Jacques Mounier, Calyon Bank Ukraine Andriy Pikula, ALICO AIG Life

Secretary: Svetlana Dehtyar, Citibank Ukraine

The Banking and Financial Services Committee has identi- In 2008 Chamber Banking and Financial Services Committee fied its Mission to be an active participant in the develop- hosted several interesting meetings with representatives of ment of the Ukrainian banking system and promotion of partner organizations and international institutions includ- high quality banking standards and values. The Committee ing but not limited to: supports and develops initiatives of the Ukrainian government and local banking associations towards establishment Meeting with Mr. Ernst Mehrens, IFC, devoted to dis- of local banking environment harmonized with best interna- cussion of financial leasing development in Ukraine. tional banking practices. Committee Members discussed financial and opera- tional leasing, peculiarities of taxation of leasing opera- In 2008 one of the Co-Chairs of the Banking and Financial tions. Among the raised topics were legislative aspects Services Committee was elected Co-Chair of Investors of leasing regulation. Members, having discussed all the Council under the Cabinet of Ministers. Under the leader- specificities, agreed that the legislation which regulates ship of Mr. Jacques Mounier the Chamber Banking and leasing mechanisms could be improved. Financial Services Committee developed the Matrix of Meeting with Mrs. Nataliya Hudyma, Director General Legislative Changes in Financial Sector, which became a of the League of Insurance Organizations of Ukraine. base of Investors Council working plan. Matrix describes The main topics of discussion were amendments to the necessary legislative and regulatory amendments including Law "On Insurance". The League of Insurance either short term, or strategic decisions, amendments to: Organization, having presented necessary amendments Laws, Resolutions of the Cabinet of Ministers, Resolutions to the Law asked the Chamber to support the initiative. of the National Bank of Ukraine, Decisions of the State Meeting with Mr. Dmytro Leonov, Head of the Ukrainian Commission for Securities and Stock Market, State Association of Investment Business and Director of the Commission for Financial Markets Regulation. The Matrix Ukrainian Institute of Stock Market Development. The describes legislative amendments to be made in Currency event was devoted to the discussion of the current situa- Control, Banking Supervision, Insurance, Financial Services, tion within the stock market, future trends and risks of an Leasing, Mortgage, Stock Market, Foreign Exchange Market, impending financial crisis. Particular attention was paid to Corporate Legislation, Financial Sector related Taxation. the activity of Investment Funds and Joint Venture Funds.

41 BANKING AND FINANCIAL SERVICES COMMITTEE continued...

NBU Resolution # 153 "On Amendments to Some Legislative Acts of the National Bank of Ukraine", which amends procedures in interbank foreign exchange market, it in particular implements a new system of agreement confirmation. According to the Document, banks will receive software, developed by NBU, and will have to enter the requests of banks' customers to sell or purchase currencies against UAH, with the amount and the foreign exchange price asked by each customer. Based on such collection of all orders of the market, the NBU would inform banks which orders could be executed, totally or partially among the orders received. Banks would thus be able to execute Examples of major issues that the Chamber Banking and totally, partially or not execute at all, the orders Financial Services Committee was actively involved in received from the customers. Chamber Banking and included but are not limited to: Financial services Committee strongly opposed such innovation, because it could make trade in interbank Resolution of National Bank of Ukraine # 458 "On foreign exchange market impossible. Amending Instruction on Regulation of Banking Activity in Ukraine", aimed at ensuring banks provide Draft Law # 2616 "On Changes to certain laws of sufficient guarantee level of regulatory capital for Ukraine on currency regulation" dated June 5th, 2008. coverage of currency and liquidity risks. The Draft Law is considered as unfavorable for banks, because it introduces additional requirements. The Development of hedging instruments in Ukraine. The Chamber addressed the Parliament, explaining pitfalls Committee discussed the ideas, prepared and sent a let- of the Draft Law. ter to the National Bank of Ukraine (NBU). It was invited to open a dialogue with NBU specialists covering differ- Implementation of IFRS, development of Stock Market ent aspects regarding the development of hedging and Money Market — it was the main issues discussed instruments in Ukraine. On Friday, July 18th the with the National Bank of Ukraine in terms of Foreign Committee represented by the Chamber Policy Team, Investor's Advisory Council. The Chamber participated in Citibank and Raiffeisen Bank Aval met with the manage- several meetings with Deputy Head of MNU, Mr. ment of the NBU Department of Foreign Exchange Savchenko, who asked for the Chamber's advices on pri- Regulation headed by Mrs. Hanna Nikolayeva. orities of financial sector development.

Chamber Banking and Financial Services Committee meeting with Mr. Dmytro Leonov, Head of the Ukrainian Association of Investment Business and Director of the Ukrainian Institute of Stock Market Development

42 BUSINESS MANAGEMENT EDUCATION AND TRAINING COMMITTEE Co-Chairs: Victor Koszarny, EBS Oleksander Sydorenko, CEUME

The Chamber Business Management Education and The main points determined during the event which could Training (BMET) Committee's Mission is to positively influ- serve as the basis for the future functioning of the Business ence the working environment of educational and training Management Education and Training Committee: organizations by clarifying issues and, when necessary, advocating for change. It serves as a bridge of understand- Information Sharing, Establishing Effective Dialog With ing and cooperation between the business and education Business; communities - raising awareness of the value of education Cooperation with the HR Committee; and training, identifying key needs of business, and promot- Research on the most tangible market issues; ing services that satisfy those needs. Lobbying and advocating activities (Ministry of Education and Science of Ukraine).

In 2008 the participants of the BMET Committee had access to a variety of presentations. Mr. Alexander Mertens, President of the International Institute of Business, delivered his presentation "Ukrainian Business Management Education: Real Quality? Real Innovations? Real Impact?" that covered the following issues:

Ukrainian business schools' place on the international educational market: whether national institutions are behind or ahead of those abroad. The first meeting of the BMET Committee's objective was to Real quality of the business education provided by the determine what the Committee could and should be doing national educational institutions. to create the highest value to its Members, tangible deliver- Whether the Ukrainian schools cover the business's needs. ables and, accordingly, to stimulate Chamber Members' How to select the right school. engagement to make the Committee successful. As a result, it was agreed to make stress on information sharing on busi- The Chamber Business Management Education and ness schools and their educational programs, as well as to Training Committee held a meeting which gathered special- unify efforts and come up with a research on BMET related ists both from the educational sphere, as well as from the problems. It was agreed that any research of a problem in software industry. The first part of the meeting was dedicat- the market, should be made by professors and students by ed a presentation on "Using of SAAS for Quantitative schools - Chamber Members. Investigations in the Internet", delivered by Mr. Vlad Zhovtenko, WorldAPP Inc. During the presentation Mr. Zhovtenko managed to present Software as a Service (SAAS) with the perspective of its implementation in the education sphere for on-line data collection.

In continuation of the launched series of the Committee meetings dedicated to MBA education and its status in Ukraine Ms. Oksana Kukuruza, International Management Institute MIM-Kyiv, delivered a presentation "Employability of MBAs". The presentation covered the following points:

what is employability; what employers are expecting from MBA graduates; what an employer can offer to MBA recruits; what a school can offer to boost up MBAs employability; what is the current situation in Ukraine.

43 CORPORATE SOCIAL RESPONSIBILITY COMMITTEE Co-Chairs: Vitaliy Fedchuk, British American Tobacco Andrew Wilson, Eurasia Foundation

Mission of the Chamber Corporate Social Responsibility (CSR) Committee is to promote CSR principles among domestic and international business community in Ukraine through uphold- ing best CSR business practice, sharing and learning information amongst the Chamber Members, building effective partnership and coordinating activities with variety of international organizations and agencies operating in Ukraine and worldwide and civil society organizations in support of CSR development goals, raising public awareness in Ukraine.

Among the topics raised by CSR Committee in 2008 were Presentation of CSR Guide with its authors Ms. Olena the following: Lazorenko, League of Professio-nal Women, and Mr. Sergiy Letenko, Nadra Bank. During the Discussion Committee Social advertisement placement. The Committee hosted participants touched such important topics as purposes for three speakers Mr. Pavlo Moiseev, Internews Ukraine, development of social responsibility in a company, differ- Mr. Kostyantyn Ryzhkov, Ukrainian Media Partnership to ence between American and European models of corpo- Combat HIV/AIDS (UMP) and Mr. Sergiy Dem'yanchuk, rate social responsibility, ecological standards as a part of INTER Deputy General Producer, covering both practical CSR strategy. and legislative issues in regards to social advertisement placement in Ukraine. Mechanisms for employees' engagement. Topic was presented by Ms. Nataliya Belyaeva, ISC-UCAN. Committee International Standard ISO 2600 development. Topic was attendees discussed international trends and Uk- covered by Ms. Maryna Saprykina, CSR expert, and Mr. rainian models of employee engagement. Rodyon Kolyshko, selected national expert from business for ISO 26000. In the presentation the guest speakers pro- Special CSR Committee Meeting (Disaster Relief). The vided the audience with information on stages of ISO Chamber was actively involved in relief of flood conse- 26000 development, stakeholders, understanding of social quences in Western Ukraine, working with the U.S. responsibility, upcoming activities on ISO development and Embassy and Red Cross to identify needs and coordinate implementation. donations of supplies and funds that will be distributed in a timely fashion to those impacted by the disaster. The Social reporting. Topic was presented by UN Global Chamber has established a Disaster Relief Fund for corpo- Compact Network Ukraine, highlighting the models of rate contributions and all money donated into that fund social reporting most suitable for their company, peculiar- will be disbursed under the guidance and recommenda- ities of the guidelines, best ways to produce social report. tions of the U.S. Embassy and Red Cross here in Ukraine Practical aspects of producing social report were covered who recently sent a team to Western Ukraine assessing by British American Tobacco Ukraine, based on their the most urgent needs. The Chamber was also working unique experience of non-financial reporting in Ukraine. with the Membership to identify possibilities for them to Committee attendees were updated on the Ukrainian donate in-kind goods. An Employee donation program was context of preparing and presenting social report. established, allowing employees to donate part of their salary to the relief effort.

Meeting with Mrs. Tetyana Kondratyuk, Deputy Minister of Youth and Sports, who updated Committee attendees on the current trends in corporate social responsibility, government policy for CSR development, possible cooperation between government and business for development Mrs. Tetyana Kondratyuk, Deputy of Ukrainian social sphere. Special attention was given to Minister of Youth and Sports transformation of orphanages system in Ukraine.

44 FUEL & ENERGY COMMITTEE New in 2008

Co-Chairs: Mr. Sergiy Lizunov, TNK-BP Commerce Mr. Oleksiy Tatarenko, Shell Ukraine

A new Fuel & Energy Committee has been formally established in May 2008. Both oil and gas companies operating in this area as well as other interested Chamber Member Companies participate in the Membership based Fuel & Energy Committee with the idea to promote the further development and modernization of Ukraine's energy sector by attracting investment, in support of the vision of a more energy self-reliant Ukraine.

Examples of major issues that the Fuel & Energy Committee was actively involved in included but are not limited to: The impact of Ukraine's WTO accession on the fuel and energy industry of the country. Having discussed the Upstream sector of the industry: including proposals to issue Committee participants came to conclusion that harmonize upstream legislation in Ukraine comprised WTO rules did not deal with energy as a distinct sector the following: taxation system of petroleum products, and the industry had already been developed according petroleum products quality control, export duty for liq- to the world norms and principles. uefied gas, auctions for liquefied gas, import duty and VAT on equipment. Committee's Leaders' meeting with the Minister of Fuel and Energy of Ukraine Mr. Yuriy Prodan resulted at agree- Review of the downstream sector of the market: ment to develop legislation development agenda. Mr. including motor and fuel market, refining and infra- Prodan assured Committee Members, that the Ministry structure, market change, pricing structure, precondi- will support legislative initiatives of the Chamber. tions for investment, VAT refund, import "grey schemes", natural monopolies' tariffs and moderniza- PSA legislation in Ukraine is of great interest of tion of refiners. The meeting was finished with atten- Committee Members, who agreed to review the legisla- dees' views on the Committees future priorities as tion as it is in different legislatively developed countries well as their possible input into the Policy Agenda of to form the picture of that most appropriate and neces- the Chamber. sary for Ukraine and its business distinguish features.

Chamber Fuel & Energy Committee Meeting with Mr. Volodymyr Ignashchenko, Former Deputy Minister of Environmental Protection; Mrs. Tetyana Yakush, Ministry of Economy; Mr. Oleksiy Tatarenko, Shell Ukraine; Mr. Patrick van Daele, Shell Ukraine; and Mr. Anatoliy Maksyuta, First Deputy Minister of Economy (left to right)

45 HEALTHCARE COMMITTEE Co-Chairs: Andriy Razumniy, Max-Well SOCPC Ltd. Vladyslav Strashnyy, Pfizer Ukraine Secretary: Vitaliy Ussenko, Pfizer Ukraine

The Mission of the Chamber Medical (Pharmaceutical) Excess of VAT on Medicines for Clinical Trials; Committee is to improve Ukraine's business environment in Role of the "R" Letter Added to the Name of the the pharmaceutical field, exchange of relevant and timely Pharmaceutical Product; information, organizing discussions and taking joint actions Instructions on Medical Use; aimed at promoting the commercial interests of Member Data Exclusivity; pharmaceutical companies. Effect of Possible WTO Accession; The Industry Problems and Management System. Among the issues the Medical Committee is addressing is registration and licensing procedures in two primary spheres: regis- The issues dealt by the Committee in 2008 included the fol- tration procedures for pharmaceutical companies and licensing lowing questions: for pharmaceutical wholesalers. Since its creation the Committee has been working in close cooperation with the It was agreed that the Healthcare and IPR Committees of Association of International Pharmaceutical producers and the the Chamber would support the Supreme Economic U.S. Embassy Foreign Commercial Service. Court in their request to bring the Cabinet of Ministers' Resolution # 376 and Ministry of Healthcare's Order The Chamber Healthcare Committee held a meeting on #426 into accordance with the Law "On January 30, 2008 hosting Mr. Victor Chumak who had Pharmaceuticals" sending the relative letters to the resumed his duties in the position of the Head of the State Cabinet of Ministers. In addition it was decided to work Pharmacological Center on January 28. The Chamber on improving the procedural legislation of Ukraine and Healthcare Committee Members had many issues to be further specialization of the courts. addressed to him. The meeting consisted of two main parts: Further cooperation with Supreme Economic Court on updates from Mr. Chumak on the Pharmacological Centre the legislation gaps elimination, which would ease the history and current activities, as well as legislation and reg- IPR cases judicial consideration and bring them into ulatory work plans followed by a question and answer ses- compliance with European norms and practices. The let- sion. Mr. Chumak pointed out that the Pharmacological ter on further specialization of economic courts in Centre looks forward to working with the Chamber Ukraine addressed to the Supreme Court of Ukraine, Healthcare Committee and the pharmaceutical companies prepared and distributed between the Committee represented to streamline and ensure the effective work of Members before the meeting, was studied and consid- the Pharmacological Centre. During the Q&A session the ered. It was agreed to send the letter to the Court as following main issues were discussed: soon as possible as it was professionally compiled and comprised all the necessary requests and their ground- Central Commission on Ethical Items Establishment; ings regarding the issue.

46 HEALTHCARE COMMITTEE continued...

In July-August the Chamber Healthcare Committee's efforts within the political uncertainty and the dismissal of the were directed towards amending the Ministry of Healthcare State Service on Pharmaceuticals and Medical Products Order #426 dated on August 26, 2005 "On expertise of reg- there is little chance of achieving positive results soon. ister materials of drugs submitted for the State registration That is why they proposed to create a precedent in court (re-registration) and expertise of materials for changes of and by that time to prepare some particular amendments the register materials during the register certificates' term to the specific Resolution #902 bodies not changing the of action". Many weekly meetings under the umbrella of Resolution itself. the State Committee on Pharmaceuticals have been attended by the Committee leaders and Committee Coordinator. The answer of the Ministry of Healthcare of Ukraine The Chamber Healthcare Committee was working in con- (MHU) in regards to the Chamber Letter sent to the junction with the Association of Pharmaceutical Research Prime-Minister of Ukraine, Yulia Tymoshenko, concerning and Development (APRaD) to prepare changes to the Order. the issues of violation of the WTO norms in regards to VAT Committee Members suggested several amendments to be on samples of investigational drugs, from August 1, 2008, included in the new text of the Order to improve the basis does not deny the fact that GATT/WTO norms violations of Ukrainian pharmaceutical legislation. It was agreed that took place. The Committee has agreed that during the the current text version of the Draft Order could be work on the draft of the Tax Code of Ukraine the propos- approved under the condition that important amendments al to investigate the VAT norms concerned has little are considered and acknowledged in the text. These main chance of being fulfilled due to the political instability in questions are: 1) Terminology discrepancies between sever- Ukraine. In order to avoid the long-term procedure of al legal acts needed to be removed; 2) Concept of "original investigation of the Tax Code Committee Members pro- medicine" needed to be included along with the "innova- posed to make certain steps towards introduction of tive" concept. amendments to the existing lists of tax-relieved pharmaceuticals (Order of the Cabinet of Ministers #1949) as well In September-October the issues touched upon the as to an additional catalogue made by MHU. In addition Resolution #902 and the Chamber Members once again rec- representatives of Member Companies Johnson & ognized it as discriminating the foreign Developer and vio- Johnson and 3M presented a letter in which a question of lating the WTO norms undertaken by Ukraine. Members of VAT is reviewed as implemented to the products already the Committee stated that the abolishment of the included in the Order #1949 (the matter touches upon Resolution #902, primarily planned by the Committee, will certain medical means, the so called stents, that are nec- require a certain amount of time as well as resources and essary for surgery).

47 HUMAN RESOURCES COMMITTEE Co-Chairs: Alla Konyayeva, Ancor SW Agency Tatyana Vitkovskaya, Brain Source International

Secretary: Inessa Krivosheya, Citibank Ukraine

The Chamber Human Resources (HR) Committee continued to accomplish its Mission of sharing experience, knowledge and skills with other HR professionals; promoting the professional development of Members through exposure to new knowledge, skills and information resulting in the enrichment of the personnel function within Member's respective organizations and increasing awareness of HR throughout the Chamber Membership. sis itself. Among others such points as moderation and pres- In 2008 few of the Chamber HR Committee meetings were entation skills, Q&A session outcomes, strategic view during conducted in a format of the Business Game. Within the the strategy creating were also considered. meetings the Committee Members received an opportunity to implement their skills in strategic vision, creativity, team This year the participants of the HR Committee had access work, as well as the ability to make brief, but comprehen- to the following presentations: sive presentations. The Committee Members were invited to the Radisson SAS Hotel to participate in the Business "Personnel Evaluation", prepared by Ms. Olena Game "The Suit Has Just to Fit…" Committee Members rep- Yurchenko, SHL-Ukraine, highlighting the instruments of resenting 6 teams were working out their strategies of the most objective personnel evaluation and the stages introduction, implementation and promotion of the HR on which they are most effective to apply. product from the prospective of the targeted group of their "Salaries and Compensations Review 2008", prepared customers identified in the Game's scenario. by Ms. Alla Konyayeva, HR Committee Co-Chair, Ancor SW. The presentation was based on the company's research of compensatory packages focused on the reg- ularities of compensatory policy in Kyiv and some other regional cities, as well as on how HR managers could gain from taking into account the salary trends and their influence on the Ukrainian economy. Presentation of Human Resources Management educational program of Kyiv Mogyla Business School, made by Ms. Anna Vlasova, the Director of HRM of Kyiv Mohyla Business School. "Total Reward Strategies", provided by Mr. Philip Rybakov, HR Director of JT International Company Ukraine, covering actual questions about the current During the Business Game the participants had the oppor- management environment of Ukraine, e.g. salary tunity to utilize and improve not only their expert knowl- increase versus inflation, benefits package, career and edge and experience in HR and psychology spheres, but also professional development, work/life balance etc. recall and implement some marketing concepts and tools in a supportive and professional atmosphere.

Ms. Alla Konyayeva, HR Committee Co-Chair and the chief moderator of the Game, delivered a comprehensive analysis of the Business Game. The analysis was from the perspective of tactic and strategic steps created by the HR managers during the event, as well as of the methodology and pitfalls of organizing such events. After the presentation the attendees discussed the conclusions made by the Business Game and those who had participated in the event shared their impressions and thoughts on the Game and the analy-

48 INTELLECTUAL PROPERTY RIGHTS COMMITTEE

Co-Chairs: Ruslan Drobyazko, Baker & McKenzie Taras Kyslyy, Magisters

The Mission of the Chamber Intellectual Property Rights the participants discussed certain legislation measurements (IPR) Committee is to advocate on behalf of the Chamber taken by the Public Council, as well as its support of the Members to protect Intellectual Property Rights in Ukraine. software Anti-Piracy Campaigns in Ukraine. It was agreed to continue the Committee's collaboration with the Public During their regular meetings Members of the Chamber IPR Council and more active involvement of the interested Committee discussed the following issues: update from Mr. Chamber Members, specialists on specific questions, into Mr. Daniil Klyuchnikov, Microsoft, on the upcoming IT Anti- the joint work. Piracy Campaigns in Ukraine; and Committee meetings with government officials. The Chamber, in conjunction with the Association of Pharmaceutical Research and Development, was pleased to invite Members of the IPR and Healthcare Committees to participate in the Roundtable discussion with Judges of the Judicial Division on Consideration of IPR Cases of the Supreme Economic Court. The discussion was dedicated to intellectual property rights protection in the pharmaceutical industry and gathered representatives of international pharmaceutical companies. It was agreed that the Chamber Healthcare and IPR Committees would support the Supreme Economic Court in its request to bring the Cabinet's of Ministers Resolution # 376 and Ministry's of Healthcare Order # 426 into accordance with the Law "On Pharmaceuticals" by sending the relative letters to the Cabinet of Ministers. In addition, it was decided to work on

Mr. Daniil Klyuchnikov explained current activities of the Business Software Alliance's (BSA) and action plans in Ukraine related to the IT Anti-Piracy Campaigns, as well as Microsoft's collaboration with the named organization. He invited all interested attendees to join the collaboration due to its great value both for separate companies and Ukraine's IPR protection in general. Following the discussion the Committee participants considered possible stakeholders to be invited as guest speakers to the Committee meetings in terms of different IPR sectors. To make it most efficient it was agreed to prepare a list of specific questions and problems for all the guests beforehand.

Mrs. Antonina P. Pakharenko-Anderson, Head of the Public Council under the State Department of Intellectual Property, was one of the first guest speakers invited to the Chamber IPR Committee meetings. She spoke about the history of the creation of the Public Council, its essence, members, form and mechanism of functioning. In addition,

49 INTELLECTUAL PROPERTY RIGHTS COMMITTEE continued...

improving the procedural legislation of Ukraine and further the aforesaid meeting, and noted that there is no need for specialization of the courts. any substantial amendments in the sphere, since it is the system of control and accountability that requires improve- Chamber IPR and Healthcare Committee Members in con- ments. It was agreed to explore the issue more closely and junction with its partner — Association of Pharmaceutical to prepare a list of steps that need to be implemented. As Research and Development (APRaD) — was proactively the political situation in the country is unstable, the involved in a considerably new type of policy activity — Committee will continue to collect the comments from the cooperation with Ukrainian judges and in particular with Chamber Members for harmonization of the Copyright and the Supreme Economic Court. Among the main topics and Associated Rights issues. goals of such joint policy efforts was improvement of the court practices in regards to the IPR related cases. Based A question concerning a problem of parallel import was rec- on the Roundtable agreements and next Committee meet- ognized by the Members as one of the hottest issues in the ings decisions, the Chamber addressed Mr. Vasyl IPR sphere. For most of the foreign brand owners, entrance Onopenko, Head of the Supreme Court of Ukraine with a into Ukrainian market involves considerable investments on letter and detailed recommendations in regards to the development of distribution network on the territory of improving the court practices related to the IPR protec- Ukraine (with certain prices and certain conditions of sale to tion. According to the answer received from the Supreme be set). Once the product becomes known to the public, it Court of Ukraine on June 6, 2008, the above mentioned often happens that local brand owner representatives reveal recommendations are going to be considered by the into the market products of the same brand that were initial- Judicial Division on Commercial Cases of Supreme Court ly targeted to the market of other neighbor states and are during the work on preparation of the Draft Commercial often sold at lower and, therefore, more competitive prices. Procedural Code of Ukraine. Such products are often imported to Ukraine by small retailers from neighbor states (Poland, Germany etc), and since Chamber IPR Committee Members gathered to discuss the they bear the original brand they cannot be qualified to be a issues of the Public Hearings at the Verkhovna Rada State counterfeit in its direct meaning. However, this "parallel Committee on Science and Education — "Efficiency of import" appears to be damaging for the world brands enter- Copyright and Associated Rights within the Ukrainian ing Ukrainian market, as it leads to competition between the Legislation Deployment" — held in September. Members same brands but with different countries origin. The issue will discussed perspectives of the issues development raised at be further examined by the Committee.

50 INFORMATION TECHNOLOGIES COMMITTEE Co-Chairs: Dmitry Shymkiv, Microsoft Ukraine, LLC Victoria Yevtoushenko, ISS - Information Software Systems Ltd.

Secretary: Denis Dovgopoliy - BayView Innovations

types of activities for further functioning of the IT Committee. The following main blocks were named:

Practical cases on particular problems (IP protection, taxation etc.); WTO accession effect in IT industry of Ukraine.

The following main issues within the IT Committee were agreement to be concentrated on:

IPR protection problems; Human resources deficit; ICT best international practice sharing; Radioelectronic goods import regulation. The Mission of the Chamber Information Technologies (IT) Committee is to improve the environment for the fur- Taking into consideration the IT market situation and its ther development of a sustainable and well-regulated problems the attendees agreed that the Committee should Information Technologies market in Ukraine. Telecom- serve more as a discussion panel in order to: munications Committee sees its Mission in lobbying interests of Chamber Member companies operating in make the business and population in Ukraine aware that the Ukrainian telecom industry, providing the most effi- the national IT product and service exist and intensively cient solutions of various problems faced by its develop; Members. The Committees work in close conjunction help the Ukrainian IT business to implement effective and pursue mutual goals such as creation of a necessary and modern methods of business conduct. environment for efficient development of IT and telecommunications sectors. As the market of Ukrainian IT products and services is currently on its upswing and the IT Committee Members' feed- At the end of January and beginning of February Members backs had showed that the level of business conducted in of the Committee were approached by the Ministry of the industry left much to be desired, one of the meetings Transport & Communication to provide information for the was dedicated to the subject on enhancement of the upcoming CeBIT Exhibition 2008 and submitted information national demand on the Ukrainian IT products and services on their success stories. in the corporate segment. The problems faced by the Ukrainian corporate sector purchasing the Ukrainian IT During one of the regular meetings Mr. Saulis Bakas, Deloitte, products, mainly services, are the following: delivered a presentation "Technology Predictions 2008", based on the updated Deloitte Research's report on TMT (Technology Ukrainian IT market is not developed enough, as there is Media & Telecommunications) core trends and predictions up lack of corporate consumers causing lack of high quality to 2010. Much discussion was caused by the subjects of virtu- products, especially services. alization and usage of mainframes, as well as digital security It is reasonable to work with a consultant when buying and other related issues. It was also remarked that the predic- special IT products and services upon special corporate tions reflected the market trend line rather than the technolog- requests and needs. ical ones. However, it was agreed that such market overviews It is not reasonable to expect cheap IT products and are indispensable for technical maintenance of the changes. At services as their prime cost is quite high today. the end of the meeting all the participants were asked to pres- There is a lack of professional sales specialists on the ent their suggestions and expectations regarding the fields and Ukrainian IT market.

51 INFORMATION TECHNOLOGIES COMMITTEE continued...

The Chamber received from the Cabinet's of Ministers of Ukraine Entrepreneurs Council the Draft Order of the Cabinet of Ministers of Ukraine "On approval of the concept of development of national computer software industry of Ukraine until the 2017". The Draft is seen as very controversial and the Committee Members are concerned with its development. It was decided to include the issue in the Agenda and to arrange a conversation with the developer of the Draft Order.

Chamber IT Committee was pleased to host a meeting with Mr. Olexiy Kozhenkin and Mr. Ihor Lisitsky, representatives of the Information Technologies of Ukraine Association and main concept developers of the Draft Order of the Cabinet of Ministers of Ukraine "On approval of the concept of development of national computer software industry of Ukraine until the 2017". The speakers were welcome to present their point of view on that issue, including:

adequate financing of the project in terms, meaning inclusion of the needed amount of money into the State Budget 2009;

disagreement with certain ultimatum-like sounding parts of the Draft Order Divisions;

assumptions that the suggested plan will create another one corruption-based business and that the IT industry does not need any government spon-

sored investments into startups since venture business is very risky, requires top business talents which cannot be found in government institutions and the best way to deal with the matter is tax relief and education reform.

Mr. Kozhenkin explained the reasons and prehistory of the Concept and answered a number of questions raised by the Chamber Members. The Concept includes regulation of the problematic issues, faced by the Association members during their work and proposals on the involvement of the State in order to ensure Ukraine's competitiveness on the world markets. Chamber Members stated that the Concept may face some problems with the approval by government authorities because its bases are not judicially feasible and there are no specific steps taken towards further development of the software sphere.

Chamber Members expressed their readiness to support the Concept and to be involved in the activities of the Working Group. The Chamber will continue to cooperate with the representatives of the Information Technologies of Ukraine Association on the development of the Concept and agreed to prepare a letter with Concept amendments to be sent to the Association.

52 LEGAL COMMITTEE

Co-Chairs: Olexander Martynenko, CMS Cameron McKenna LLC Peter Teluk, Silecky Firm

The Chamber Legal Committee was created with the Commission on Securities and Stock Market. Members of Mission to be a forum for professional exchange among the Working Group developed and considered several hun- attorneys from law firms and corporate entities. dred proposed amendments with many taken into account Members of the Committee represent a broad spectrum by Parliamentarians during preparation of the Draft Law for of legal professionals. One of the Committee's main the second reading in the Verkhovna Rada's Committee on activities is to work in conjunction with other Chamber Economic Policy. Committees when they need to address issues with specific legal ramifications. The Joint Stock Company Law was adopted by the Parliament on September 17, 2008 and signed by the In 2008, Members of the Chamber Legal Committee worked President on October 22, 2008. closely with other Chamber Committees and participated in various Working Groups. In particular Legal Committee Members worked closely with Tax Committee on legal aspects of investment abroad, questions of capital contributions using borrowed funds, AMC approvals.

Legal Committee was also deeply involved in the discussion of the Joint Stock Company Law. Throughout 2007 and 2008 specialists of the Chamber Legal Committee in conjunction with the best experts in the sphere of corporate governance legislation worked diligently to advocate for the adoption of the Draft Law On Joint Stock Companies. The Chamber Policy Team and fellow partner organizations were actively involved in the process of discussion and drafting of the Draft Law On Joint Stock Companies preparing a solid draft for the second reading. This work was carried out with the participation of the Chamber Policy Team under the auspices of the special Working Group created under the State

53 TAX COMMITTEE

Co-Chairs: Oleh Chayka, KPMG Oleh Marchenko, Magisters

The Chamber Tax Committee envisages its primary goal in the issues which are not clearly stated and described in the cur- promotion of reform and improved application of the taxa- rent Ukrainian legislation and/or which are not covered in tion system in Ukraine, recognizing that a predictable, equi- the tax legislation at all. table and effective tax system is a significant factor both in general facilitation of business and in positive development of Examples of major issues that the Tax Committee was active- the economy of Ukraine and facilitation of information-shar- ly involved in included but are not limited to: ing on tax issues within the Membership. Draft Tax Code — During 2008 the Committee as well as the Chamber Policy Team constantly monitored the situation around drafting process of the Tax Code, and provided Ministry of Finance, State Tax Administration office and Parliament Committee for Banking and Finance Activity with the comments and proposals, delivered by the Committee Members. Within the Tax Committee a Working Group was created to unify all the comments to Draft Tax Code and prepare proposals to the Code on further stages of its adoption. VAT on export of services rendered to non-residents — the issue appeared to be one of the most pressing for the Committee Membership and was discussed both internal- ly and during meetings with relevant State officials. Committee participants developed text of relevant Chamber Open Tax Committee Meeting with Mr. Serhiy amendments to the Law "On Value Added Tax" and sub- Chekashkin, Deputy Head of the State Tax Administration mitted it to the Parliament. Tax Committee developed Position Paper "10 tax initiatives Top professionals from advisory firms and business entities to make Ukraine competitive tax jurisdiction". The docu- have formed the core group of the Tax Committee. This year ment defines legislative issues, which, if implemented, will the Tax Committee continued to serve as the forum for raise Ukraine's competitiveness. Among them are: elimina- Chamber Members to discuss tax issues that impact tion of capital taxation, extension of tax periods and dead- Chamber Committees, actively involved both in lobbying lines for tax filings; enhancement of tax administration and and networking activities. fairness; elimination of small taxes and consolidation of certain tax payments; implementation of transfer pricing; In 2008 Chamber Tax Committee hosted several interesting ensuring a favorable taxation regime for holding companies; meetings with representatives of partner organization and group taxation; tax neutrality of corporate reorganizations; international institutions including but not limited to: additional tax deductions; tax status of branches.

Meeting with Mr. Lekar, Deputy Head of State Tax Administration. The meeting was devoted to discussion of necessary amendments to the Law of Ukraine "On Value Added Tax", "On Corporate Income Tax". Also, regulation of the taxation issues regarding non-residents, their status and creation of the permanent entities in Ukraine was discussed.

Meeting with Mr. Serhiy Chekashkin, Deputy Head of the State Tax Administration. Continuing a constructive dialog with a new leadership team of the State Tax Administration the Cham-ber organized another meeting with the STA management to address specific requests of the Chamber Membership. The meeting was mainly dedicated to the

54 TELECOM COMMITTEE

Co-Chairs: Mark Burden, MTS (Ukrainian Mobile Communications CJSC) Oleh Yakymchuk, Telenor Ukraine

During the year the Telecom Committee was an effective forum and useful source of information. Members had the chance to listen to the following presentations that were followed up by actions on the issue:

Presentation on TMT Predictions 2008 (TMT stands for Technology, Media, and Telecommunications) by Deloitte Research: In the presentations the majority of tendencies affecting business operation of telecom market players were presented along with a list of relevant recommendations that were consequently discussed in The Telecom Committee Mission is lobbying interests of the detail by Committee Members. Chamber Member companies operating in the Ukrainian telecom industry by providing the most efficient solution to Issues of imported telephones certification. Due to rota- the various challenges faced by its Members. The tion of management in National Commission on Committee works in close conjunction with other Chamber Communication, uncertainty with rules of certification Committees to pursue mutual goals that stimulate the cre- of telephones occurred, which was harmful for the mar- ation of a necessary environment for efficient development ket. Committee Members strongly advocating for trans- of the telecommunications sector. parency and predictability of Ukrainian telecom market decided to address the Government with the issue of In 2008 Chamber Telecom Committee hosted several interest- certification of imported telephones asking for clarifica- ing meetings with representatives of partner organizations tions of regulatory policy in this field. Based on the posi- and international institutions including but not limited to: tion of the Chamber and other partner associations, rules of telephones certification were clarified. Meeting with Mr. Oleksandr Baranov, Head of Department for Communications and Informatization of M-commerce (mobile commerce) development. M- the Ministry of Transport and Communications of commerce is the buying and selling of goods and servic- Ukraine. Committee participants were updated with up- es through wireless handheld devices such as cellular to-date statistic figures in regards to telecom and IT sec- telephones. It is very prospective service, which is sup- tor development tendencies, as well as informed on posed to make life of customers more convenient with development of IT solutions, providing wider servicing easy access to money and services. Thus Committee spectrum for the mobile operators clients within the Members agreed to advocate for the development of M- broadband communication channels. commerce in Ukraine, including communication with authorities on optimization of regulatory and permissive Meeting with well known expert in telecommunications, per- procedures. son who chaired Ukrtelecom and was the Minister of Transport and Communications, Mr. Oleh Shevchuk. 3G development in Ukraine. 3G networks enable net- Currently Mr. Shevchuk is People's Deputy and Head of work operators to offer users a wider range of more Union of Employers in Telecom. The meeting was devoted to advanced services while achieving greater network the discussion of Draft Law "On Personal Data Protection", capacity through improved spectral efficiency. Services amendments to the Law "On Telecommu-nications", include wide-area wireless voice telephony, video calls, amendments to the Law "On Radiofrequency Resource". and broadband wireless data, all in a mobile environment. Discussions regarding development of 3G in Meeting with Mr. Oleh Prozhyvalskiy, Deputy Minister of Ukraine have been going on within the Cabinet of Transport and Communications, Director of State Ministers and Parliament for years. The Chamber Department on Communication and Informatization. Telecom Committee agreed to advocate for facilitation Meeting was devoted to the market overview, discus- of 3G implementation. As the first step the Telecom sion of perspectives of #G development, m-commerce Committee will produce a Position Paper regarding 3G implementation, problems of canalization. development in Ukraine.

55 TRAVEL AND TOURISM COMMITTEE

Co-Chairs: Valeriya Lyuk, Sky Travel BTI Ukraine Oleksander Pigolenko, Travel Centre "TRIME" LLC

The Chamber Travel and Tourism Committee was created meeting participants identified and discussed the issues with the Mission to encourage the participation of the concerned with the Ukrainian civil aviation, modernization Chamber Members in an organized policy initiative to proof the Boryspil Airport and handling passengers improve- mote Travel and Tourism related issues in Ukraine. ment, e-ticketing business trip reporting, licensing and certification points, development and construction of hotels, The Travel and Tourism Committee's goals and objectives business visas obtainment. The event was finished with the include an increase of Ukraine's participation in internation- mutual agreement to conduct the next meeting with repre- al travel and tourism organizations and forums; promotion sentatives of hotels and, if possible, with an authority from of the development of the Ukrainian business and leisure the Kyiv state administration responsible for hotel sector hospitality infrastructure; simplification of the bureaucratic development. requirements for foreigners to travel in Ukraine; increase the ready availability of international standard business During one of the regular meetings Ukraine's hotel industry facilities; promotion of Ukraine as a desirable destination state and future development priorities were studied and for international holiday travelers; sharing knowledge and discussed by Mr. Yevhen Samartsev, Head of the National experience among Chamber Members involved in the trav- Public Council of Tourism and Resorts who had been invit- el and hospitality arenas. ed as a guest speaker, representatives of hotels and travel firms — Chamber Members. Beginning the meeting Mr. The Travel and Tourism Committee Members, representing Samartsev, with his presentation, updated the attendees on different sectors of the industry and some related ones, the National Public Council of Tourism and Resorts: its foun- marked out the main problems faced in the sectors. The dation history, structure, membership and functions.

56 TRAVEL AND TOURISM COMMITTEE continued...

The presentation was followed by an active discussion on rate with them in the budgeting plan and state promotion- the hotel industries problems and their possible solutions. al program formation. Mr. Yevhen Samartsev, Head of the In particular, the initiative to create a Sub-Committee on National Public Council of Tourism and Resorts, was repre- Hotel Industry within the Travel and Tourism Committee senting the State side in the meeting. He welcomed the was supported by the Committee Leaders and representa- meeting attendees initiatives and promised to keep in touch tives of hotels present at the meeting. It was agreed to hold and in collaboration with the business representatives. the first meeting of a Sub-Committee on March 5 at the Premier Palace Hotel to work on the hotels' projects, for a The main discussion issue in spring touched upon the pro- promotional campaign of Ukraine in general and Kyiv in par- motional campaign of Ukraine and what the Committee ticular, which could then be implemented by the appropri- Members could do in this respect. The consideration was ate state bodies. grounded on the recommendations and concrete steps suggested by the Sub-Committee on Hotel Industry Members and highlighted in the compiled document available during the meeting. As the situation with Ukraine's promotion abroad is currently perceived as poor and there are no significant steps on the State's side, the Committee Members agreed to prepare a familiarization trip of some journalists to Ukraine - uniting efforts of all Chamber Members interested in the matter. The initial actions are to be made in the on-line regime. One more issue of the meeting considered was the Business Visa Issuance Procedure and based on the relative discussion it was agreed to address directly to the Schengen office in Brussels.

The Committee meeting was held on August 28 to sum up the summer results and to determine the most important issues to be settled until the end of the year 2008. During the meeting the following issues were discussed: Development of a successful familiarization trip for foreign travel journalists including agenda, dates, timelines and responsibilities; Business trip reporting and electronic tickets; Ukraine promotion plan (developed by TTC members in Following the Travel and Tourism Committee Meeting's March 2008); Define current problems and needs of the decisions and agreements, certain Committee Members - Travel & Tourism industry through the end of 2008; Possible mainly working in the hotel industry - gathered together to joint meetings with Legal and Tax Committees aimed on discuss the current situation with promotion of Ukraine as a assisting the government authorities with preparation of a tourist country and its hotel industry in particular. During European-level legislation system documents in the tourist the meeting the available actions taken by the State and sphere. Among others discussed were the amendments to business for the promotion program were considered, its the Law On VAT and questions of business trip reporting and defects and lackings were marked out and certain related electronic tickets. sectors of such a program were identified. During the joint Travel and Tourism and Tax Committee Proceeding with planning of the promotional trip of Meeting, held in September, the Co-Chair of the European journalists to Kyiv the attendees agreed on the Committee, Valeriya Luyk, outlined the amount of problems number of invitees and the countries represented by Members of the Committee are faced with. Among the them, discussed some details on the airline flights, most essential are expenses for air travel with use of e-tick- transfers, entertainment program and sponsorship ets, which are non-deductible as it is impossible to have the needed. The project budgeting and determination of the traveler's ticket on paper. E-tickets are used more and more trip's dates are to be finalized. As soon as the program often in light of plans of the International Air Transport and budget are ready, the attraction of interested Association (IATA) to eliminate paper tickets by mid 2008. Chamber Members will be started. The Committee Members have decided to examine the Each of the attendees undertook a certain sector of the pro- issue more deeply and suggested to direct a letter to the gram being created - in order to provide the appropriate Ministry of Finance of Ukraine to clarify the provisions and State authorities with the necessary proposals and collabo- the possibility of making amendments to the procedure.

57 REAL ESTATE COMMITTEE

Co-Chairs: Timur Bondaryev, Arzinger & Partners - Co-Chair Andriy Sosnovskyy, Tebodin Ukraine - Co-Chair

The Chamber Real Estate Committee sees its goals and Members agreed to write a relevant letter to the objectives in the following: information and experience Cabinet of Ministers and State Agency for Land sharing between the Chamber Members involved in the real Resources communicating practical implications of such estate sphere; cooperation between corresponding legisla- innovations and asking for clarifications. In closing, tive and executive bodies with the objective to introduce Committee Members agreed on the list of guest-speak- necessary amendments into Ukrainian legislation which in ers they would be interested to meet with in 2008. turn will promote the real estate development in the country, reduction of the bureaucratic obstacles involved in real Open Chamber Real Estate Committee Meeting was hosted estate transactions, transparency in real estate transac- by the State Agency on Land Resources on March 12. During tions, facilitation of foreign investment in Ukrainian real the meeting Members of the Chamber Real Estate estate development projects, availability of long term Committee had opportunity to listen to the presentation financing for the real estate projects. and to pose questions to Mr. Stanyslav Gorbatovych, Head of Department of Land and Evaluation Activity. Delivering At the beginning of the year Chamber Members dis- his presentation, Mr. Gorbatovych turned the audiences cussed the situation with moratorium on agricultural attention to the practical aspects of land auctions imple- land and agreed that currently incoming investors mentation. On February 22, 2008 the Cabinet of Ministers should be aware of the risks they might bare when pur- issued Resolution #90 "On Some Questions of Land chasing the agricultural destination land and, if possible, Auctions" which changed rules of land plot allocation dra- wait until the legislation becomes clearer. Also, the key matically. According to the Resolution, only local authorities issues of the meetings agenda was an overdue extension will create and approve the list of land plots for sale. The of the moratorium on transactions with agricultural land State Agency on Land Resources will be in charge of prepa- and new procedure for acquiring rights of land plots ration of land plot for auction. Such a system should make being in state or communal property. Committee land plot allocation less corrupted. Mechanism of land plot

Chamber Meeting with Mr. Stanislav Gorbatovych, Head of the Department of Land and Evaluation Activity, devoted to the Draft Laws “On Land Market”

58 REAL ESTATE COMMITTEE continued... allocation via auctions is progressive but it still requires a lot tion with land relations and processes of appropriate leg- of work on the establishment of mechanisms for the auc- islative development the Chamber should invite representa- tions execution. tives of the Verkhovna Rada Agrarian Policy and Land Relations for an Open Agricultural and Real Estate As the meeting was held in the form of dialog, Chamber Committee Meeting. Members had a chance to discuss controversial points in land legislation with the leadership of the State Agency on Currently, the Land and Real Estate Working Group operates Land Resources. Among the raised topics were the following: under the auspices of the Ministry of Regional description of procedure of land plot allocation according to Development and Construction of Ukraine and the the Resolution of CM #90; possible consequences of imple- Chamber Policy Team representatives together with Mr. mentation of the term "functional destination of land plot"; Andriy Sosnovskiy, Tebodin Ukraine and Co-Chair of the peculiarities of allocation of a land plot, which is situated Chamber Real Estate Committee and Mr. Artem Saprykyn, within different administrative districts; questions of financ- Marks, Sokolov & Burd, Committee Member, took part in its ing of project development on land plot allocation; mecha- work. During the latest meeting in August the Working nisms of obtaining licenses on carrying out auctions, etc. Group discussed pieces of draft legislation elaborated by Considering rapid changes in land legislation, need of its fur- the Ministry of Regional Development and Construction. ther development and importance of a dialog between investment community and authorities of the executive One of the legislative drafts was the City Construction Code, power in the sphere of land relations, the Chamber and the which is in the sphere of the Committee prior interests. The State Agency on Land Resources decided to establish perma- existing text of the document raised a number of questions nent cooperation and continue the dialog. that required further clarification. Among the most controversial issues is the so-called "simplification" of the documents portfolio execution, since the Code adds some additional steps before receiving permission to start building and construction works. In addition, the Code enlarges a number of the State bodies needed to coordinate documen- tation. Finally, the number of documents to be agreed upon has enlarged. Committee Members also discussed the problems with auctions, insurance of titles and the problems on inconsistency of notaries, as the next matters to deal with. The City Construction Code requires a number of amendments in specific issues and was acknowledged by the Committee Members as an important step towards harmonization of the Ukrainian legislation. Committee Members will continue to work on the improvement of the Code both within the Committee, as well as representing the Chamber at Working Groups in order to ensure the Code corresponds with the international practice. We would like to encourage April 2008 resulted in a Joint Agricultural - Real Estate all existing and potential Committee Members and all inter- Committee Meeting. During the meeting representatives of ested partners to start the working process and be actively the Real Estate Committee shared their experience of involved into it. recent Chamber organized meetings and practical dialog with the State Agency on Land Resources. After discussion, Chamber Committee participants decided to focus on the issues of terminology used in land relations. Chamber Committee Members volunteered to draft a letter on the issue, which will be submitted to the State Agency of Land Resources. The attendees also discussed Draft Law #2143 "On Land Market" submitted by the Cabinet of Ministers of Ukraine and Draft Law #2143-1 "On Land Market" developed by the group of peoples' deputies as an alternative. The Committee participants agreed that the Draft Laws need to be discussed in detail and the next Committee meeting could be devoted to the questions of land market. Attendees agreed that in order to clarify the current situa-

59 WORKING GROUPS REPORTS

WORKING GROUP ON CUSTOMS POLICY

The Chamber of Commerce Working Group on Customs Continuing the previously established tradition to offer Policy was formed on the basis of the former Chamber the Membership access to a quality information platform Customs & Transport Committee. In 2008 the Chamber providing insight into business processes as well as cut- Working Group was engaged in lobbying and advocating ting-edge technologies and international best practices issues that are of high importance to the Members and that impacting business, the Chamber hosted specially related influence their successful operations. It also proactively events like "The Ukraine's Accession to WTO: Impact on addressed authorities for further necessary reforms in cus- Customs Regulations" held within the framework of the toms clearance regulations and rules for export/import Chamber Knowledge Seminars "Competitiveness of the operations aimed to make Ukraine more competitive in this Ukrainian Economy". important sphere allowing the country to fully utilize its great geographical location and potential as the main In September the Chamber Policy Team was pleased to host European transportation crossroad. another important discussion dedicated to the Draft Customs Code, entitled "Understanding the Challenges and During 2008 many customs policy related draft laws, resolu- Advantages of the New Customs Code" that included the tions and orders were under consideration of the Working Chamber Membership and decision makers within the State Group. Most of this work has been done utilizing the Customs service and Public Council Service of Ukraine. The Chamber's Membership at the State Customs Service Public Chamber understands that a new Customs Code will posi- Council, which is one of the most active Councils. tively impact many of our Members, if properly drafted and implemented, and will continue assisting in increasing In summer 2008 Chamber Senior Policy Officer, Ilona Ukraine's Competitiveness and level the playing field for Zadvorna, was responsible for the operation of the many of our Member companies. Secretariat of the Public Council under the State Customs Service of Ukraine regularly informing the Public Council members on all news and developments.

Among the important pieces of legislation that Members of the Working Group focused their attention on was the Draft Law "On Changes to the Customs Code of Ukraine" registration #2778 (also known as the new Customs Code of Ukraine); the Draft Law "On Amendments to the Law of Ukraine on the Customs Tariffs", registration #2351-1; a series of the customs related legislation, which were necessary for Ukraine's accession to the World Trade Organization and resolutions regulating procedures of goods movement through the customs border of Ukraine.

60 WORKING GROUP ON CERTIFICATION AND STANDARDIZATION

Members of the Chamber Working Group on Certification aimed to harmonize the structure and to form the National and Standardization are involved into amending appropriate Technical Regulations in accordance with the EU Directives in legislation through continuous cooperation with the Cabinet this sphere; Draft Law # 1363 "On Amendments to Some Laws of Ministers on three of the Draft Laws covering such issues of Ukraine (On Standardization and Obligatory Certification)", as standards, technical regulation and conformity assessment which was designed to separate the system of technical regu- procedures, as well as general safety of products. lation from the system of state regulation and control on safety and quality of food products and to shorten the list of prod- In spring the Chamber participated in the first meeting of ucts which should be certified. the Working Group on Technical Regulation created by the decision of the new Investment Council under the Prime Other important matters for the Working Group Members leg- Minister established at the beginning of 2008. The Chamber islative initiative are: the Draft Law #1365 "On the Market has addressed many important issues related to Ukraine's Surveillance" (the Action Plan "Ukraine - EU" envisages imple- commitments in the sphere of technical regulation after its mentation of the systems of market surveillance in Ukraine in WTO accession. Participants discussed an action plan for compliance with European requirements); the Draft Law "On the Ukraine's commitments in the sphere of technical regu- Amendments to Some Legislative Acts with regard to Providing lation according to the WTO Accession Protocol. The Information on GMO Components in Products" and new regu- Chamber together with its Working Group monitored and lation on new general rules of food products' marking imple- analyzed the situation with implementation of the mented by the "National Standard # 4518:2008" approved by Ukrainian commitments after accession to the World Trade the State Committee on Technical Regulation and Consumer Organization on a regular basis. In 2008 the Chamber con- Policy of Ukraine. The new standard for marking became valid tinued to participate in the work of the Public Council of the on November 1st, 2008 and should be applied for national State Committee on Technical Regulation and Consumer food products as well as for imported food products. Policy of Ukraine, which has been reorganized under new leadership of the State Committee.

Members of the WG had focused their attention on a number of legislative initiatives impacting the sphere of technical regulations in Ukraine including: the Draft Law #2290 "On Changes to the Law of Ukraine "On Standards, Technical Regulations and Procedures on Production's Conformity (on assessment of the production's conformity)", submitted to the Parliament by the Cabinet of Ministers of Ukraine with the aim to finalize the legal preparation of Ukraine for the WTO accession; Changes to the Cabinet of Ministers Regulation #870 ILLEGAL CORPORATE RAIDER ATTACKS WORKING GROUP

The objective of the Chamber Illegal Corporate Raider Attacks international competition and a growing number of mergers WG is to develop propositions for protection of property and acquisitions by actively improving their systems of corpo- rights, including prevention of illegal corporate raider attacks rate legislation and regulation, thereby, gaining a competitive and regulation of corporate conflict, that continue to be advantage over other nations in attracting and maintaining among essential problem areas in Ukraine. Corporate legisla- investments. Understanding the goal that Ukrainian corporate tion in Ukraine has been developing without a unified strate- legislation must comply with international standards and also gic approach in the past. As a result, it tends to be fragment- ensure competitive rules and regulations for companies, ed, incomplete and, in some cases, contradictory in nature. including mechanisms for protection of property rights and for Moreover, such corporate legislation creates obstacles for incurring of acceptable expenses to implement them, effective business activity and for attraction of needed invest- Members of the WG took active part in the joint work of the ments. It also causes high transaction expenses for business JSC WG, Legal and Tax Committees to advocate on many areas operations. Currently many countries respond to continuous related to the problem of illegal raider attacks.

61 WASTE PACKAGING MANAGEMENT WORKING GROUP

Members of the Chamber Waste Packaging Working Group agement system in Ukraine with the previously discussed and are working on amending of appropriate regulatory legisla- agreed position to suit interests of the business community. tion through regular and continuous cooperation with the The letter addressed the following important issues: Cabinet of Ministers of Ukraine in regards to the three Draft Laws dealing with the system of collecting, sorting, trans- To support the Draft Law of Ukraine "On Waste Packaging portation, recycling and utilization of waste as a secondary Management" # 1415 that introduces the best practices raw material. The main goal is to develop such waste packag- of waste packaging management based on the EU prac- ing management system in Ukraine, which will be harmo- tices. nized to the best international practices and will serve the To initiate relevant changes to the Resolution of Cabinet interests of all sides involved in the process - Ukrainian pri- of Ministers of Ukraine # 915 dated July 26th, 2001 and to vate sector, population and government. remove contradiction with current legislation. To support the initiative of the entrepreneurs and pro- In January 2008 the Chamber initiated discussion of the Draft duces of Ukraine regarding creation in Ukraine of effec- Law #1415 "On Packaging and Waste Packaging", which has tive system of waste packaging management based on been registered at the Parliament. The main objective of the the market relations and European legislation. Draft Law is to decrease influence of waste packaging on envi- To reorganize the "Ukrekocomresursy" company and to ronment, to settle indexes of waste package utilization, to remove practices of combining several functions and establish responsibilities of entities conducting waste packag- monopolization of the market. ing management. The Draft Law obliges all entities of "life According to the Article 23 of the Law of Ukraine "On cycle" of the packaging to take steps towards a decrease of Waste" to define Ministry of Environmental Protection as influence of waste packaging on the environment by means the special authority responsible for the State policy in of its utilization or multiple usage. the sphere of waste packaging management.

In regards to this, the Chamber was involved in the joint activ- The work on this issue continues and the Chamber Waste ity with many partners like Ukrainian industry associations and Package Management Working Group Members would like sent a joint letter addressing Prime Minister of Ukraine with a to invite all other interested Members to join this important list of propositions regarding the reforming of the waste man- and value added activity. JOINT STOCK COMPANIES WORKING GROUP

main ideas to be included into the draft as well as to educate and popularize the idea of adopting modern joint stock company legislation in Ukraine. The Chamber's representatives regularly took part in the activities of the working group, established by the State Commission on Securities and Stock Market, to finalize the draft and agree with its many stakeholders.

The first positive step and success was achieved in February when the Cabinet of Ministers of Ukraine approved the final version of the Draft Law "On Joint Stock Companies" and submitted it to Parliament for further consideration. A properly drafted JSC Law was very important for all sectors of business operating in Ukraine and could be considered as a major cornerstone for the protection of minority shareholder's rights Due to importance of the Joint Stock Company Law for Ukraine, and fostering proper corporate governance. its investment climate, especially for protecting current The Chamber JSC Working Group was comprised of interested investors and attracting additional investments, the Chamber Chamber Members who are professionals in their respective Policy Team assembled a special Joint Stock Company (JSC) fields and can contribute positively in the process of reviewing Working Group several years ago. Members were working in the draft legislation to ensure that the concerns of the legiti- many different directions to prepare the text, to advocate on mately operating business community are taken into account

62 JOINT STOCK COMPANIES WORKING GROUP continued... during the process of passing and signing into Law this impor- this important piece of legislation that the Chamber has been tant piece of legislation. The Chamber Policy Team was diligently advocating for over many years. responsible for taking the recommendations and amendments developed by the Working Group forward and monitor- The passage of the Joint Stock Company Law sends a strong ing the process in Parliament ensuring that the Chamber positive signal to all investors, no matter the nationality of their Members' viewpoint is taken into consideration. capital, that the country is in fact open for business even during these turbulent times both in the global financial markets and On September 17th, 2008 the Draft was supported by 358 in the continuous political environment within Ukraine. votes (total 450) in the Parliament of Ukraine in the 2nd reading and sent it to President of Ukraine for his signature. On This Working Group together with colleagues of the Chamber October 22nd, 2008 President Yushchenko signed the docu- Working Group on Illegal Corporate Raider Attacks are plan- ment finally making this long anticipated piece of legislation a ning to continue discussions of the newly adopted Law On JSC reality (Registration number is 514-VI). The Chamber applaud- to understand all consequences for the business community ed all law makers whose wisdom allowed for the passage of and further develop the necessary implementing regulations. SEEDS WORKING GROUP New in 2008

On October 15th the Chamber hosted the first meeting of the Ukraine as well as negatively impacts companies providing Seeds Working Group engaging all interested Chamber agricultural products and producing seeds brands in Ukraine. Members, who are professionals in their respective fields, to positively contribute to the process of reviewing the draft legislation The first stage of the Working Group's activity has been in the sphere of seed and planting stock. The Working Group has devoted to the problem of importing of seeds and planting started the process of producing recommendations and amend- stock as well as the issue of seeds registration in Ukraine. ments to the Draft Law "On Seeds and Planting Stock". Participants of the Working Group discussed provisions of the Regulation on Import of Patterns of Plants for Expertise At the end of 2008 the importation of new varieties of plants on Suitability for Proliferation in Ukraine adopted by the has stopped (by the protest of the Prosecutor-General's Office Order of Ministry of Agrarian Policy of Ukraine # 512, dated of Ukraine dated June 26, 2008). This situation hampers devel- August 15, 2008). This Regulation has come into force on opment and dissemination of new varieties of plants in October 30, 2008.

63 TOASTMASTERS CLUB President: Volodymyr Vakhitov, Kyiv School of Economics/Economics Education and Secretary: Research Consortium, Inc (KSE/EERC) Olga Akimova, Procter & Gamble Ukraine LLC Vice President Education: Oksana Ivanchenko, Microsoft Ukraine, LLC Treasurer: Tania Lukinyuk, Coca-Cola Ukraine Limited Vice President Membership: Yuliya Kobuk, Asters Sergeant at Arms: (formerly Shevchenko Didkovskiy & Partners) Julia Zhyvytsya, EBS

Vice President Public Relations: Immediate Past President: Maryna Seredkina, NovoFarm Tania Lukinyuk, Coca-Cola Ukraine Limited

The Chamber Toastmasters Club was Member Companies as Procter & established in 1999 to provide employees Gamble, Coca-Cola, British American of Chamber Member organizations and Tobacco, Deloitte, Baker Tilly, Ernst & businesses with a unique opportunity to Young, Microsoft and many others. develop leadership, communication, and public speaking skills. The Club fully fol- In 2008 the Ukrainian Toastmasters lows the educational curriculum and pro- community was involved in a large num- cedures of Toastmasters International, a ber of events and interactions that worldwide organization with a well estab- included among others: All-Ukrainian lished reputation, over eighty years of speech contest, Debates on hot topics, experience and nearly 235,000 Members Evaluation Contest, Communication in 92 countries. trainings and demo meetings in several companies, joint meetings with other Over the last nine years the Club has Toastmasters clubs in Kyiv. become a valuable asset for those who desire to build on their public speaking This year the Club has had many achieve- skills, boost their leadership potential, and ments to be proud of. It received Distin- improve future career opportunities. guished Club Award from Toast-masters Simply attending and participating in week- International in recognition of Club's ly Toastmasters meetings, Members of the excellent accomplishments in public Club are actively engaged in performing a speaking and leadership area. Prominent wide array of roles, ranging from funny and Club Member, Anna Prymakova, was easy to very demanding and serious. Keeping time or monitor- elected among all toastmasters in Kyiv as an Area Governor. ing mistakes made by other speakers, presenting their own Another Member of the Club has won the Area Speech Contest project or evaluating someone else's, leading a discussion or in Spring 2008. One of the most advanced Club Members has giving a mock press conference, preparing a training session or received an Advanced Toastmasters Silver Award, and she was performing Officer duties - all these tasks contribute to the also the first in Ukraine to achieve Competent Leader Award. rapid growth of personal confidence and the ability to express Another Member of the Club has achieved Advanced thoughts clearly, to get right to the point, to motivate and lead Toastmasters Bronze Award, and four more Members have others. Communication with different people turns into a become Competent Toastmasters. To move each step up along work of art instead of a daunting exercise. the Toastmaster's career, a Member needs to demonstrate a lot of energy, work hard, and complete ten public speaking or After relocating to the Chamber premises last year, the leadership projects. Membership in the Club almost doubled. The Toastmasters Club is proud to have 54 permanent Members, with 17 of The Toastmasters Club helps its Members to develop their them having joined in 2008. Our Members are professionals personality. The Club Members have maintained a positive from various leading international and local companies. The and warm atmosphere and are able to successfully support Club unites both experienced managers and young special- both new-comers and experienced Members. The keys to ists under the common goal of developing public speaking the Club's success are learning through helping, leading by and leadership skills. Our Members work for such Chamber motivating, and giving immediate encouraging feedback.

64 CHAMBER NETWORKING EVENTS & SOCIAL ACTIVITIES

CHAMBER EVENTS

Over the last sixteen years the Chamber of Commerce has Networking. The Chamber Events Team has been successful in been working diligently to add value to the Membership by increasing the quality of events dramatically in 2008 and looks providing a wider variety of professionally executed events forward to continuing to introduce new and innovative events that serve as a platform for effective Business and Social that add value to the Membership in 2009 and beyond.

BUSINESS & SOCIAL NETWORKING Captains of Industry Ladies" was a themed evening based on the Epoch of Luxury and Extravagance and of Reason and Change - a time when beautiful women and romantic men were surrounded by the magical music of Mozart, Vivaldi and Rossini, the art of Watteau, Reynolds and Gainsborough, literature of Burns, Schiller and Goethe while living in majestic palaces and strolling through magnificent parks. The event took place at the LEO CLUB by Kozyrna Karta, a beautiful restaurant complex designed for exclusive clientele. LEO CLUB specially opened its doors for Chamber COIs.

The Chamber in conjunction with its Primary Partner MTS was proud to continue a tradition and to organize another successful series of senior level Networking Events entitled Captains of Industry (COI). In 2008 Chamber COI events were held three times and were a great opportunity for CEOs/Senior Managers of Chamber Member companies to Network with other business leaders, diplomats and special guests in an interesting venue with a no hassle atmosphere while enjoying delicious food and beverages as well as some other surprises. The first 2008 Captains of Industry event "A Night of Lords and During the next Chamber Captains of Industry event entitled "Leaders in skyNetworking" Chamber Captains successfully launched the new virtual "Chamber COI Airways" into the wild blue yonder and discovered Networking at altitude with a bit of attitude! Guests enjoyed beautiful weather, excellent Networking, delicious food provided by Chamber Member Royal Catering Service and aviation themed entertainment. The Chamber looks forward to hosting more Captains of Industry events in 2009 and thanks our primary Partner in 2008 - Member company MTS - without which the COI events would not have been so successful.

65 Business Networking Cocktails

In 2008 Business Networking Cocktails took place in the following Chamber Gourmet Club Restaurants: Arizona BBQ, O'Briens Irish Pub, Monaco Restaurant, Panorama, Nobel Restaurant, Riviera on Podol Boutique-hotel, Swing Restaurant - Bar. Traditionally, Chamber guests were able to enjoy a special menu and cold draft beer at discounted prices provided by the Restaurants.

Chamber Business Networking Cocktails are one of the most popular Chamber Networking offerings among the Membership. Networking Cocktails provide Chamber Members with an excellent opportunity to Network, to make new contacts among potential business partners and to share news among friends and colleagues in a relaxed atmosphere.

66 Silver Card Events

Night" that took place in the Banquet Ballroom at the Opera Hotel. All attendees enjoyed a festive night reminiscent of the sundrenched Mediterranean coast enjoying delicious food and beverages as well as entertainment and the possibility to walk away with some valuable gifts.

Chamber Silver Card events are a special benefit that is open only to Chamber Silver Discount Card holders providing them with an opportunity to Network and enjoy invitations to specially organized events that add value both per- sonally and professionally.

The Chamber jointly with the Chamber Member Baker Tilly Ukraine was pleased to organize the continuation of Silver Card events entitled "Chamber Amateur Photo Exhibition" that took place on the St. Valentine's Day. In the best traditions of COI & In November the Chamber in conjunction with Chamber Silver Card Events, the 2nd Amateur Photo Exhibition included Member Baker Tilly Ukraine a Silver Card event for the great Networking, delicious appetizers and beverages. The Chamber Discount Card holders titled "Fall Wine Fiesta". All Event was dedicated to highlighting the 60 best works submit- attendees enjoyed excellent Networking, a wine tasting ted to the Chamber Amateur Photo Exhibition Project within 4 with a professional sommelier and delicious appetizers that categories: portrait, nature, travels and street photography. perfectly accompanied the wine in a relaxed atmosphere of Guests had a chance not only to enjoy the beautiful and cre- the Chamber Gourmet Club member La Casa del Habano. ative works of their colleagues but also played a significant role All the guests enjoyed not only delicious wines from France, in defining the winners of the Exhibition. Italy and Chile but also had a wonderful opportunity to test their knowledge of wines by completing a specially pre- Also in 2008 the Chamber in conjunction with the Chamber pared questionnaire with the winners walking away with a Member Opera Hotel was pleased to hold a very successful bottle of Chilean wine and a certificate discount provided by and fun Silver Card event entitled "Mediterranean Teatro the Goodwine supermarket.

67 Young Professional Network

made the Halloween atmosphere complete. Almost all guests created cool costumes and came out with their friends and colleagues to have fun, network and win prizes participating in challenging contests and competitions.

In winter, in order to conclude the series of YP-Net events the Chamber brought together young professionals of Chamber Member companies to soak up the upcoming Christmas and New Year Holidays atmosphere. During the event all guests enjoyed an exciting entertainment program that was topped up with presents and souvenirs, Networking, welcome drinks and good company.

The 2008 series of Chamber Young Professional Network (YP-Net) events started in February with a fun and festive Mardi Gras celebration. The holiday atmosphere of the evening was complete with carnival masks and trinkets as well as lots of fun contests with prizes generously provided by Chamber Member companies.

In October the Chamber was happy to invite employees of Chamber Member organizations to the traditional YP-Net Halloween Party. Horror movies, jack-o-lanterns (carved pumpkins), costumes and the Chamber's Very Scary Punch

English Language Movie Premieres

which were "National Treasure: Book of Secrets", "Definitely Maybe", "The Other Boleyn Girl", "WALL-E", "Mamma Mia" etc. The events gathered many Chamber families and friends who enjoyed a great evening at the movies as well as Networking in the informal atmosphere.

Chamber English Language Movie Premieres have been offered exclusively for Chamber Members, their families and friends. In 2008 Movie Premiers took place at the Kinopalace Cinema Complex. Chamber Members and guests had an opportunity to watch world movie premiers in English, among

68 SOCIAL / FAMILY AND TEAM BUILDING EVENTS

SPORT COMPETITIONS

IV Annual Chamber Corporate Tennis Cup The Chamber in conjunction with Chamber Member Delloite. organized the IV Annual Corporate Tennis Cup over the weekend of May 24th and 25th at the beautiful courts of Nauka Sport. The event gathered players and their colleagues, friends and family members, who supported the teams throughout the tournament. Despite the intense competition, a friendly and professional environment allowed players and fans alike an opportunity to Network and enjoy a weekend sporting activity together.

12 teams participated in the tournament and they were: Bayer LTD, BMS Consulting LTD, Deloitte - JSCIB UkrSibbank, Hewlett-Packard Ukraine, International Mortgage Bank, JSC 'Slavutich Brewery', Kyivstar GSM JSC, KPMG, MTS, JSCIB UkrSibbank, Universal Bank.

The Winners of the IV Annual Chamber Corporate Tennis Cup became:

1st place: Bayer LTD 2nd place: Slavutych Team (Slavutich, Carlsberg Group) 3rd place: International Mortgage Bank CJSC

Best Male Player: Mr. Anatoliy Kuzmin (Slavutych Team) Best Female Player: Ms. Olha Smolinska (International Mortgage Bank CJSC)

Chamber Corporate Bowling Tournament The Chamber was pleased to host the Chamber Corporate The Chamber also provided awards the best individual play- Bowling Tournament, a great team building event. This year ers of the Chamber Corporate Bowling Tournament and the Tournament lasted four nights and gathered nine teams they were: uniting employees from the following Chamber Member companies: BOSSdev Ukraine, Billa Ukraine, Cushman & Best Male Player: Wakefield, IMTC-MEI, Radisson SAS (SASSK LLC), SALANS, Ivan Prikhodko TECHINVEST, Tebodin Ukraine CFI, Winner Imports Ukraine. (Winner Imports Ukraine) Best Female Player: The Chamber was pleased at the end of each night to award Lyudmila Shevchenko the winners of that evening with prizes generously provided (TECHINVEST Group) by the partners.

The winner of the entire Tournament was Winner Imports Ukraine. The last Wednesday evening of the Tournament the Chamber gave specially prepared Tournament trophies to the first, second and third place teams which were: The Chamber would like to thank our partners Lavina Music, Winner Imports, BOSSdev Ukraine and Billa Ukraine. Puma Ukraine and What's ON for supporting the event.

69 Football Tournaments

Over the past six years the Chamber is pleased to organize During the last two weekends of September the Chamber Chamber Football Tournaments, which have become very pop- was pleased to continue the tradition of organizing the VII ular events among the Membership. They enable employees of Chamber Annual Football Tournament. Member Companies to show off their talents on the field while building teamwork and fostering healthy competition. This year 28 teams of Chamber Member Companies participated at the football field "Start" including: ACTEK-C Ltd., Allianz Ukraine, CMS Cameron McKenna LLC, Coca-Cola Beverages Ukraine Limited, Deloitte, Ernst & Young LLC, ESY LTD, INGO Ukraine Joint-Stock Insurance Company, INTEGRITES GROUP, International Law Firm "Arzinger & Partners", Johnson&Johnson, KPMG, Kraft Foods Ukraina, Kryvyi Rih Cement, OJSC, Kvazar-Micro Company, Louis Dreyfus Commodities Ukraine Ltd, Magisters, MGI Consulting Ltd., MTI, Office Solutions Ukraine, Premier Palace Hotel, PricewaterhouseCoopers, ProCredit Bank CJSC, QBE Ukraine, Shell Ukraine Explora-tion and Production I LLC, SimCorp Ukraine LLC, and UDEC LTD.

Winners of the VI Annual Chamber Football Tournament were: Winners of the Annual Chamber Indoor Football 1st place: INGO Ukraine Joint-Stock Insurance Company Championship Cup 2008 were: 2nd place: Louis Dreyfus Commodities Ukraine Ltd 3rd place: INTEGRITES GROUP 1st place: International Law Firm "Arzinger & Partners" 2nd place: DHL According to the Tournament's referees the following play- 3rd place: Astelit ers received their prizes in the next categories: The Tournament's referees also awarded winners in the following categories: Best Player: Antonenko (INGO Ukraine Joint-Stock Insurance Company); Best Player: Mykhaylo Lysenko Best Goalkeeper: (International Law Firm "Arzinger & Partners") Konstyantyn Hayba (INTEGRITES GROUP) Best Goalkeeper: Evhen Denysov (DHL) Best Forward: Oleksandr Goncharuk (Louis Dreyfus Best Forward: Mykola Obeyukh Commodities Ukraine Ltd) (International Law Firm "Arzinger & Partners") Best Fullback: Yaroslav Lysenko (INGO Ukraine Joint-Stock Best Fullback: Pavlo Mikolyuk (Astelit) Insurance Company) The Chamber was pleased to wrap up three weekends of exciting Spring Indoor Football Tournament action during the Annual Chamber Indoor Football Championship Cup 2008. It gathered 36 highly competitive teams from the Chamber Member Companies and took place in the professional gym of the National University of Food Technology in Kyiv. The participants of the Indoor Football Tournament were: ACTEK-C Ltd., American Machinery Company, Astelit, Avis Ukraine, BBH Ukraine, CMS Cameron McKenna LLC, CREDIT EUROPE BANK CJSC, Can-Pack (Ukraine), Chadbourne & Parke LLP, Coca-Cola Beverages Ukraine Limited, DHL, Deloitte., Ernst & Young LLC, International Law Firm "Arzinger & Partners", Golden Telecom, Johnson&Johnson Medical, KPMG, Kraft Foods Ukraina, Kvazar-Micro Company, Leater, METRO Cash & Carry Ukraine, MTI, McDonald`s Ukraine, Microsoft Ukraine, Mini Steel Mill "ISTIL (Ukraine)" CJSC, Office Solutions Ukraine, PricewaterhouseCoopers, Procter & Gamble Ukraine, Radisson SAS (SASSK LLC), QBE Ukraine, Samsung Electronics Co., Ltd., US Embassy, Ukraine International Airlines (UIA), Vasil Kisil & Partners, WRIGLEY Ukraine and WorldAPP.

70 Chamber Paintball Tournament

Among the participants of the Chamber Paintball Tournament were the following Chamber Member companies: AREVA (Luxoft), Arzinger & Partners (International Law Firm "Arzinger & Partners"), Chadbourne (Chadbourne & Parke LLP), Cisco (Cisco Systems Management B.V. in Ukraine), DTZ, DTZ 2, DTZ 3, DTZ 4, Hawks (Pricewaterhouse- Coopers), Kyivstar (Kyivstar GSM JSC), Leo Burnett Ukraine, LuxPanters (Luxoft), Microsoft, Sayenko Kharenko, The Chamber, Thirstquenchers (Coca-Cola Ukraine Limited), VAB Titans (VAB Bank), Winner (Winner Imports Ukraine), YUG- Contract (Yug Contract Co., Ltd.).

The winners of the Tournament were: 1st place: Winner Imports Ukraine 2nd place: Kyivstar GSM JSC The Chamber invited all interested Members, with their 3rd place: Microsoft Ukraine, LLC families and friends, to participate in the 2008 Chamber Paintball Tournament that was organized under the Primary Partnership of Burn Energy Drink in cooperation with Chamber Member Gepard Paintball Club. All participants and their supporters enjoyed a wonderful sunny day outside playing paintball, using the climbing wall, cooling off with an exciting game of water soccer, enjoying tasty snacks and cold beverages with the excitement of a fast action paintball tournament. The teams all exhibited good sportsmanship and were highly competitive having fun and building strong bonds among their teams and interacting with their colleagues from other Chamber Member companies.

FAMILY EVENTS Family oriented events are especially organized for parents Also in February the Chamber hosted a Special Family Project - and their children that lead an active lifestyle and enjoy an exclusive excursion to the backstage of the National Opera spending time together. House of Ukraine. During the excursion everyone had an opportunity to get general information about this famous building and its 140-year history; see the backstage area, stage and production department where all the magic happens.

In spring the Chamber continued its series of Special Family Projects - "Unknown Ukraine" - with a fascinating trip to the first in Ukraine Museum of the Folk Architecture. It is situated in Pereyaslav-Khmelnytsky and has big exposition of village houses of different epochs, instruments, utensils, things from smithy, collection of mills of XVIII century and other unique exhibits. Chamber Members had an opportunity to visit more On February 29th the Chamber was happy to use the than twenty museums including the museum of Folk Life and chance, which only happens every 4 years, to celebrate the Architecture, museums of Cosmonautics and Bread. magic of Leap Day, in years evenly divisible by four. The Chamber invited its Members to a special place, which is situated in the very heart of the capital - Kyiv Astronomic Observatory, where a guide shared an amazing story about the history of the Leap Year and Leap Day's customs and superstitions from different cultures as well as interesting facts from the History of the Kyiv Observatory. The sky was clear and the guests had an opportunity to see the stars from the amazing telescopes.

71 Corporate Social Responsibility Related Events

Independence Day Picnic

On July 5th the Chamber of Commerce in Ukraine organized another successful Annual Charitable American Indepen- dence Day Picnic this year at Spartak Stadium. Although the

morning sky did not look promising, the Picnic's theme of SUN & FUN did become a reality. The event was held to strengthen the values of democracy and freedom, as well as friendship and cooperation among nations. All proceeds from the event went to charity and were distributed to worthy projects in different regions of Ukraine through the UCAN foundation.

The 2008 Picnic brought together thousands of people who enjoyed a real American Picnic right here in Ukraine. Guests experienced great live entertainment and a spectacular fireworks show as well as having an opportunity to participate in all kinds of games and contests, while enjoying a beautiful sunny day with friends and family.

72 SPECIAL THANKS TO THE PICNIC SPONSORS 2008:

PRIMARY SPONSORS: Fireworks Sponsor ...... MTS Primary Beer Sponsor ...... Slavutich, Carlsberg Group Primary Soft Drinks Sponsor . . .Coca-Cola Beverages Ukraine Limited Primary Kid's Zone Sponsor . . . .Volvo Primary English Language Media Partner ...... What's On

GOLD SPONSORS: SILVER SPONSORS: 1 . . . . .AIR FRANCE-KLM Group in Ukraine 1 . . . . .Cargill AT, CJSC 2 . . . . .American Medical Centers 2 . . . . .ClearWater Ukraine 3 . . . . .Amarcord-Alex 3 . . . . .DHL 4 . . . . .Astelit LLC 4 . . . . .KLS Ltd 5 . . . . .Boris Medical Services 5 . . . . .McDonald`s Ukraine 6 . . . . .Caterpillar Dealer - Zeppelin Ukraine GmbH 6 . . . . .METRO Cash & Carry Ukraine Ltd. 7 . . . . .DKT Corp. 7 . . . . .Office Solutions Ukraine 8 . . . . .DIALOG PRESS 8 . . . . .Premier Palace Hotel 9 . . . . .Ernst & Young Ukraine LLC 10 . . . .INGO Ukraine Joint-Stock Insurance Company 11 . . . .Lavina Music BRONZE SPONSORS: 12 . . . .Leo Burnett Ukraine 13 . . . .Leater 1 . . . . .ALD Automotive 14 . . . .Motorola 2 . . . . .AeroSvit Airlines 15 . . . .Nestle Ukraine 3 . . . . .Chadbourne & Parke LLP 16 . . . .Radioaktive Film 4 . . . . .CMS Cameron McKenna LLC 17 . . . .SICH SECURITY SERVICES 5 . . . . .Chadbourne & Parke LLP 18 . . . .TNK-BP Commerce LLC 6 . . . . .DLA Piper 19 . . . .Times Media Group™ 7 . . . . .Gala Radio 20 . . . .Ukraine International Airlines (UIA) 8 . . . . .Grant Thornton 21 . . . .Yuridicheskaya Practika Publishing 9 . . . . .The Imperial Tailoring Co. 22 . . . .Ukraine International Airlines (UIA) 10 . . . .KODAK 23 . . . .Zinteco 11 . . . .Kraft Foods Ukraina 12 . . . .MacHOUSE 13 . . . .MARY KAY 14 . . . .Magisters 15 . . . .Marathon Petroleum Ukraine 16 . . . .Max-Well 17 . . . .Mimoza 18 . . . .Phoenix Language Center 19 . . . .Procter & Gamble Ukraine 20 . . . .PUMA Ukraine 21 . . . .SkyNet Worldwide Express 22 . . . .Sky Travel HRG Ukraine 23 . . . .VIASAT TV 24 . . . .Wrigley 25 . . . .YUG CONTRACT

VOLUNTEER SPONSORS: 1 . . . . .AIESEC 2 . . . . .FLEX 3 . . . . .Credit-Expert ICC 4 . . . . .International Christian University - Kyiv 5 . . . . .Wisconsin International University (USA) Ukraine 6 . . . . .YUG CONTRACT

73 ANNUAL EVENTS

On January 31st the Chamber hosted the first large gathering of Members in 2008 during the Members Appreciation Reception and Discount Card Presentation, a great Networking event that gathered hundreds of Chamber Member Company representatives as well as the diplomatic and donor community who Networked with fellow decision makers and enjoyed the reception.

During the event the Chamber introduced the new 2008 Board of Directors, recognized the Chamber 2008 Official Service Providers, presented the highly sought after Black Captains of Industry (COI) and Silver Discount Cards and new 2008 Membership Directory, created in conjunction with Chamber Members Niche Media Group Ltd. and Miratech. The Chamber also declared its new "Key to Your Success" slogan.

During the reception Chamber Members Networked while having an opportunity to enjoy the exhibition of many of The Chamber would like to thank our Annual Members the Chamber Discount Program participants presenting Appreciation Reception Partner - Kyivstar GSM JSC, as well their products and services. as the Sponsors of the event for making it a real success.

74 CHAMBER PUBLICATIONS

Annual Report The Chamber Annual Report is an year highlighting Chamber Advocacy and Lobbying electronic publication that is Activities, Committees and Working Groups, Networking designed to summarize the and Family Events, Publications, Corporate Social Chamber's activities during the Responsibility, Discount Card Program information, etc.

Chamber News in Business Ukraine Magazine

Chamber News in Business Ukraine magazine is a new project of the Chamber successfully launched with the New CHAMBER Frontier Media Group Ltd. as an answer to the rapidly changing Ukrainian economy and political situation that

NEWS Volume 1, Issue 4 October 2008 requires new sources of information as well as business skills and strategies. The official newsletter of The American Chamber of Commerce in Ukraine www.chamber.ua Time for predictability This month’s The Chamber is pleased to contribute to Business Ukraine Global crisis increases need for stable government highlights as an informative and practical English-language publica- Jorge Zukoski President, The American Chamber of Commerce in Ukraine From the President ϭ d« Ä ¥ÊÙ Ýã®½®ãù çÙ®Ä¦ tion in order to provide our Members and other readers ƚŝƐƉŽƐŝƟǀĞŶĞǁƐƚŚĂƚĂůůƐĞŶŝŽƌhŬƌĂŝ- ƉŽƐƐŝďůĞ ƐŝŐŶŝĮĐĂŶƚ ŝŵƉĂĐƚ ƵƉŽŶ hŬƌĂŝŶĞ ã« ¦½Ê½ ¥®ÄÄ®½ Ù®Ý®Ý IŶŝĂŶƉŽůŝĐǇŵĂŬĞƌƐĂŶĚŝŶƐƟƚƵƟŽŶƐĂƌĞ ŝĨ ŶŽƚ ƉƌŽƉĞƌůǇ ŵĂŶĂŐĞĚ͕ ŝƚ ŝƐ ƐŝŵƉůǇ ŶŽƚ with up-to-date information on the Chamber's Policy, ĚĞǀĞůŽƉŝŶŐ ĂŶĚ ŝŵƉůĞŵĞŶƟŶŐ ƐƉĞĐŝĮĐ ĞŶŽƵŐŚƚŽŚĞĂƌŐĞŶĞƌĂůŝƟĞƐĂďŽƵƚƚŚĞƉůĂŶƐ Policy news ĂĐƟŽŶƐƚŽƉƌĞǀĞŶƚĂǁŽƌƐĞŶŝŶŐŽĨƚŚĞĚŽ- ƚŽ ĂĚĚƌĞƐƐ ƚŚĞ ƉŽƐƐŝďůĞ ĮŶĂŶĐŝĂů ĐƌŝƐŝƐ ŝŶ Ϯ Eó Eh Ù¦ç½ã®ÊÄÝ ÊÄ Advocacy and Lobbying related activities. Chamber News ŵĞƐƟĐĞĐŽŶŽŵŝĐƚƵƌŵŽŝůƚŽŵŝŶŝŵŝǌĞŽǀĞƌ- hŬƌĂŝŶĞ͕ŝƚŝƐĐƌŝƟĐĂůƚŚĂƚhŬƌĂŝŶŝĂŶ^ƚĂƚĞŽĨ- Ä»®Ä¦ ã®ò®ãù Ăůů ŵĂƌŬĞƚ ƌŝƐŬƐ͘ dŚĞ ŵĞƌŝĐĂŶ ŚĂŵďĞƌ ĮĐŝĂůƐĂŶĚŽƚŚĞƌƌĞǀĞŶĂŶƚƐƚĂŬĞŚŽůĚĞƌƐƉƌŽ- section in Business Ukraine is intended to provide targeted ŽĨŽŵŵĞƌĐĞŝŶhŬƌĂŝŶĞĐůĞĂƌůǇĐŽŵŵƵŶŝ- ǀŝĚĞŝŶĨŽƌŵĂƟŽŶŽŶŚŽǁƚŚĞƉůĂŶƐĂƌĞƚŽďĞ The Chamber speaks out ĐĂƚĞƐƚŽŐŽǀĞƌŶŵĞŶƚĂůŝŶƐƟƚƵƟŽŶƐƚŚĂƚŽƵƌ ĂĚŵŝŶŝƐƚĞƌĞĚ ƐŽ ƚŚĂƚ ŽƵƌ DĞŵďĞƌƐ ŬŶŽǁ ϱ tÊÙ½ ÊÄÊÃ® &ÊÙçÃ analytical business related information and a comprehen- ĂĐƟǀŝƟĞƐĂŶĚŽƵƌDĞŵďĞƌƐ͛ŽƉĞƌĂƟŽŶƐŝŶ ǁŚĂƚ ƚŽ ĞǆƉĞĐƚ ŝŶ ƚŚĞ ǁĂǇ ŽĨ ĞǆĞĐƵƟŽŶ͘ Ãã®Ä¦ hŬƌĂŝŶĞĂƌĞĐůĞĂƌůǇǁŝƚŚŝŶƚŚĞĨƌĂŵĞǁŽƌŬŽĨ ůƐŽ͕ ŝƚ ŝƐ ŝŵƉŽƌƚĂŶƚ ĨŽƌ ƉŽůŝĐǇ ŵĂŬĞƌƐ ƚŽ ĂƉŽƐŝƟǀĞůŽŶŐƚĞƌŵƐƚƌĂƚĞŐŝĐƉĂƌƚŶĞƌƐŚŝƉ͘ ĐůĞĂƌůǇĞǆƉůĂŝŶƚŚĞůŽŐŝĐĂŶĚƌĞĂƐŽŶƐďĞŚŝŶĚ Committee highlights sive overview of events and services provided by the &ƌŽŵ ƚŚĞ ƐŝĚĞ ŽĨ ƚŚĞ ŚĂŵďĞƌ͛Ɛ ŝŶƚĞƌŶĂ- ĞĂĐŚŶĞǁĂĐƟŽŶĂŶĚƌƵůĞƚŚĂƚŝƐŝŶƚƌŽĚƵĐĞĚ͕ ϳ ,çÃÄ ZÝÊçÙ ÊÃÃ®ãã ƟŽŶĂůůǇŽƌŝĞŶƚĞĚŵĞŵďĞƌƐŚŝƉ͕ǁĞďƌŝŶŐƚŽ ĂŶĚŚŽǁŝƚŝƐŐŽŝŶŐƚŽŚĞůƉƚŚĞĞĐŽŶŽŵǇŝŶ Chamber to Members, investors and senior business pro- ƚŚĞƚĂďůĞĂƉŽůŝĐǇŽĨŝŶŶŽǀĂƟŽŶĂŶĚŝŵƉƌŽǀ- ŐĞŶĞƌĂů Žƌ ŝŶ ƐŽůǀŝŶŐ Ă ƉĂƌƟĐƵůĂƌ ŝƐƐƵĞ Žƌ ã»Ý ã« ®Ä®ã®ã®ò ŝŶŐhŬƌĂŝŶĞ͛ƐĐŽŵƉĞƟƟǀĞŶĞƐƐ͕ŝŶƚƌŽĚƵĐŝŶŐ ƉƌŽďůĞŵ͘dŚĞƐĞƉůĂŶƐƐŚŽƵůĚŶŽƚďĞŵĂĚĞ fessionals in Ukraine. ĐƵƫŶŐ ĞĚŐĞ ƚĞĐŚŶŽůŽŐŝĞƐ͕ ƉƌŽǀŝĚŝŶŐ ŚƵŶ- ŝŶ Ă ǀĂĐƵƵŵ ďƵƚ ŝŶƐƚĞĂĚ ŝŶ ĐŽŶƐƵůƚĂƟŽŶƐ Networking events ĚƌĞĚƐ ŽĨ ƚŚŽƵƐĂŶĚƐ ŽĨ ũŽďƐ͕ ƉĂǇŵĞŶƚ ŽĨ Ă ǁŝƚŚ ŵĂŶǇ ŽĨ ƚŚĞ ƌĞůĞǀĂŶƚ ƐƚĂŬĞŚŽůĚĞƌƐ ϴ ½Ùã®Ä¦ /ÄãÙÄã®ÊÄ½ ůĂƌŐĞƐƵŵŽĨƚĂǆĞƐĂƚďŽƚŚƚŚĞŶĂƟŽŶĂůĂŶĚ ŝŶĐůƵĚŝŶŐ ďŽƚŚ ƚŚĞ ĚŽŵĞƐƟĐ ĂŶĚ ŝŶƚĞƌŶĂ- ÊÝÝ ù͕ ÄÄç½ ¥ÊÊã½½ ƌĞŐŝŽŶĂůůĞǀĞůƐĂŶĚŝŶƚƌŽĚƵĐƟŽŶŽĨŝŶƚĞƌŶĂ- ƟŽŶĂůďƵƐŝŶĞƐƐĐŽŵŵƵŶŝƚǇ͘dŚĞŚĂŵďĞƌŝƐ ãÊçÙÄÃÄã ÙÝç½ãÝ Chamber News is a value added information source about ƟŽŶĂů ďĞƐƚ ƉƌĂĐƟĐĞƐ ǁŝƚŚŝŶ ƚŚĞ ƐƉŚĞƌĞ ŽĨ ƉůĞĂƐĞĚƚŚĂƚƚŚŝƐĚŝĂůŽŐŝƐŶŽǁƚĂŬŝŶŐƉůĂĐĞ ĐŽƌƉŽƌĂƚĞ ƐŽĐŝĂů ƌĞƐƉŽŶƐŝďŝůŝƚǇ͘ &ƌŽŵ ƚŚĞ ǁŝƚŚƚŚĞƉƌŝǀĂƚĞƐĞĐƚŽƌŝŶĐŽŶũƵŶĐƟŽŶǁŝƚŚ Event focus - ƐŝĚĞ ŽĨ ƚŚĞ ^ƚĂƚĞ͕ ƚŚĞ ŚĂŵďĞƌ ĂŶĚ ŽƵƌ ǀĂƌŝŽƵƐďƌĂŶĐŚĞƐŽĨƚŚĞhŬƌĂŝŶŝĂŶŐŽǀĞƌŶ ϵ ÙÝÝ®Ä¦ ã« ¦½Ê½ the Chamber and includes information on various In-Focus - DĞŵďĞƌƐƐŝŵƉůǇƌĞƋƵĞƐƚƚŚĞĨƵƌƚŚĞƌĚĞǀĞů ŵĞŶƚ ĂŶĚ ǁŝƚŚ ƚŚĞ ŝŶƚĞƌŶĂƟŽŶĂů ĮŶĂŶĐŝĂů ¥®ÄÄ®½ Ù®Ý®Ý ŽƉŵĞŶƚŽĨĂƐƚĂďůĞ͕ƉƌĞĚŝĐƚĂďůĞĂŶĚĂƩƌĂĐ- ŝŶƐƟƚƵƟŽŶƐƐƵĐŚĂƐƚŚĞ/ŶƚĞƌŶĂƟŽŶĂůDŽŶ- 10 /ÄÝ®ÙÝ s®ó Dã®Ä¦ and Insiders View meetings the Chamber organizes with ƟǀĞ ŝŶǀĞƐƚŵĞŶƚ ĐůŝŵĂƚĞ ǁŝƚŚ ƚŚĞ ĐŽƌŶĞƌ- ĞƚĂƌǇ&ƵŶĚ͕tŽƌůĚĂŶŬĂŶĚƵƌŽƉĞĂŶĂŶŬ ƐƚŽŶĞďĞŝŶŐĂĚŚĞƌĞŶĐĞƚŽƚŚĞƌƵůĞŽĨůĂǁ͘ ĨŽƌZĞĐŽŶƐƚƌƵĐƟŽŶĂŶĚĞǀĞůŽƉŵĞŶƚ͘ Also this month: Ukrainian government officials; highlights activities of the ĂƐĞĚŽŶƚŚĞŚĂŵďĞƌ͛ƐƐĞǀĞŶƚĞĞŶǇĞĂƌƐ The need for clarity ŽĨ ĞǆƉĞƌŝĞŶĐĞ ŝŶ hŬƌĂŝŶĞ ǁĞ ƵŶĚĞƌƐƚĂŶĚ ϭϭ /Ä Ö®ãçÙÝ Chamber Committees; covers numerous Chamber /ŶƚŚŝƐƌĞŐĂƌĚ͕ǁŝƚŚŝŶƚŚĞĐŽŶƚĞǆƚŽĨƚŚĞĐƵƌ- ƚŚĂƚŝŶŐĞŶĞƌĂů͕ĐŽŶƐŝƐƚĞŶĐǇŝŶŝŵƉůĞŵĞŶƚĂ- ϭϮ K¥¥®®½ ÝÙò® ÖÙÊò®ÙÝ ƌĞŶƚƚƵƌŵŽŝůŽŶƚŚĞŐůŽďĂůŵĂƌŬĞƚƐĂŶĚƚŚĞ ƟŽŶĂŶĚĞŶĨŽƌĐĞŵĞŶƚŽĨůĂǁƐ͕ƌĞŐƵůĂƟŽŶƐ͕ ϭϯ Êçã ã« «ÃÙ Networking and social events. 2008 Chamber Official Service Providers:

October 2008 A1 Membership Directory

The Chamber Membership Directory is a highly sought after Members benefit that is published on an annual basis and that provides the contact details and an in depth description of each Member company as well as other useful information about the Chamber and the business and diplomatic community active in Ukraine.

The Membership Directory also contains a Country Profile comprised of articles related to specific economic and business interest areas as well as political trends provided by Chamber Members who are experts in their respective field. Each Member receives two copies of the Membership Directory free of charge. This publication is circulated to the Chambers of Commerce in the NIS, EU and US as well as diplomatic and donor missions throughout the world.

75 CHAMBER PUBLICATIONS continued...

CHAMBER ELECTRONIC PUBLICATIONS

The Chamber electronic publications are sent to our Advocacy and Committee Update every Wednesday. Policy Membership and externally to the wide variety of individu- Flashes are aimed to inform interested Members properly als and organizations that we work with in the process of and in a timely manner on relevant issues that may impact obtaining positive changes in the Ukrainian business and their business and are sent to those Members who request investment environment. a subscription.

The Chamber Board of Directors, Policy Team together with While constantly exploring ways to further improve the Chamber Committees and Working Groups regularly com- cooperation between the Chamber and Member compa- municate their activities to the Membership via electronic nies, the Chamber issues a monthly electronic magazine publications: Weekly Bulletins, Policy Flashes, Advocacy Chamber In-Brief aimed to inform our Members about and Committee Updates, Information Bulletins and Networking events and Policy news, to provide Committee President's Messages. In addition to the Weekly Bulletin highlights, as well as providing Members with an opportuni- which is sent out every Monday, each Member receives the ty to share their company news and important events.

Chamber Advocacy and Committee Update

This concise and innovative electronic publication is sent to Comprehensive overview of the engagement of the Members every Wednesday providing an overview of the Chamber Industry and Sector specific Committees and Chamber's current Advocacy and Lobbying initiatives Working Groups. including: The publication serves as an effective communication tool pro- Ongoing policy activities viding Member companies with insight and early warnings Communication with appropriate Ukrainian State regarding issues that may impact their business and inviting authorities Members, who are experts in their respective fields, to share Legislative updates information and join efforts to successfully address common Success stories issues that impact the investment community active in Ukraine.

Chamber Weekly Bulletin

Member Companies receive an HTML based electronic Upcoming business Networking cocktails Weekly Bulletin each week via e-mail which describes activ- Sport events organized by the Chamber ities in and around the Chamber which will take place in the "In-Focus" and "Insiders View" meetings near future. It provides schedules and agendas for upcom- Movie nights ing Committee meetings and other activities that the And many other interesting activities organized by the Chamber organizes as benefits for the Membership such as: Chamber to benefit its Members.

President's Message

A brief Executive Summary distributed via e-mail exclusively Members and other relevant information that may be of to the senior management of the Chamber Membership interest to senior management regarding Chamber activities that highlights policy and advocacy initiatives undertaken as well as containing invitations to CEOs to the Captains of by the American Chamber of Commerce on behalf of our Industry Meetings.

76 CHAMBER PUBLICATIONS continued...

Chamber In-Brief

Chamber In-Brief is an informa- tives, Committees and Working Groups activities as well as tive monthly English-language Networking events. It also contains a special section entitled electronic magazine summariz- "Member News" that provides the Chamber Member-ship ing the Chamber's activities and with an opportunity to publicize news and worthy events highlighting the Chamber's that happened within their organization. Advocacy and Lobbying initia-

Chamber Website www.chamber.ua Throughout 2008 the Chamber continues to improve, develop value to the Members by effectively communicating key and incorporate innovations into its contemporary web-site to Chamber activities, initiatives, success stories keeping Mem- provide relevant information as well as improve communica- bers updated on the current situation in the country, including tion with the Membership in an easy to navigate platform. The Interfax news, Tax/Legal/Economic updates. Also, there is a Chamber website is an important means of communication section devoted to EURO 2012 as one of the main Policy and up-to-date source of information for all our Members and Priorities of the Chamber giving Members access to the latest interested parties in Ukraine and abroad. It contains a wide information, legislative changes, news, initiatives regarding variety of useful information about Chamber's Lobbying and preparations to this big and very important event for Ukraine Advocacy activities, Networking events, Committee activities, and especially its competitiveness in the world. Since the as well as tax, legal, banking and legislative updates. Chamber is an active participant of the Prime Minister's Investors Council, which is co-chaired by Prime Minister Yulia The Chamber website is also the source of important news Tymoshenko and Sergiy Tigipko, Chairman of the Board of and useful information about our Member Companies. All Swedbank, the Chamber website has a special Prime Members have the possibility to post press releases and Minister's Investors Council section. In addition, Members can newsletters to the Members News Section on the find on the Chamber website information on the EU's pro- Chamber's website. This value added benefit is provided to gram REACH (Regulation on Registration, Evaluation and Chamber Members free of charge. Authorization of Chemicals), its procedures, principles and requirements. Press Room, comprehensive site map are sec- In 2008 the Chamber was pleased to offer its Members and tions aimed to make the Chamber website easy to navigate interested parties new sections on its website which add more and provide maximum information for the Members.

77 MEMBER 2 MEMBER DISCOUNT CARD PROGRAM

In 2008 one of the most sought after benefits for Chamber Throughout the years the Discount Program has been regard- Members was the Chamber Member 2 Member Discount ed as an effective promotional tool for the Chamber Member Card Program. The Chamber promotes the use of Chamber Companies. At the end of 2008 over 60 companies participate COI (Captains of Industry) and Silver Discount Cards among in the Member 2 Member Discount Card Program providing the Membership to create a reputable well-recognized pro- savings on a wide variety of high quality goods and services motional vehicle for fellow Members to utilize. This for the benefit of the Membership. Our Members enjoy the Program not only allows participating Members to raise the discounts in around 60 of the best restaurants in Ukraine, awareness, profile and revenues of their companies, but it which are united under the Chamber Gourmet Club brand also gives the representatives of every Chamber Member launched in 2005. We are pleased that all participants of the Company the benefit of having access to the many dis- Program notice increased popularity of their goods and serv- counts that are on offer. ices consumed by Chamber Members.

The Chamber Discount Card Program unites companies offering discounts in the following areas:

Advertising, Media & Printing Services Insurance Airlines IT/ Telecom Services Business Services Legal Services Car Leasing & Sales Moving & Relocation Services Consultancy, Investments & Marketing Research Office Furniture & Equipment Educational & Training Services Real Estate, Offices & Leasing Express Delivery Services Retail Establishments Healthcare & Beauty Services Travel Services Hotels

78 MEMBER 2 MEMBER DISCOUNT PROGRAM LIST (AS OF NOVEMBER 2008)* * The list of Discount program participants grows on a regular basis and the most updated list can be found on the Chamber web-site at: www.chamber.ua/discount

Advertising, Media & Printing Services

DIALOG PRESS Ltd Internet Securities, Inc. Evolution Media LLC

Fond Sozvezdie Ltd Niche Media Group Ltd.

Yuridicheskaya Interfax-Ukraine news agency Practika Publishing

Airlines

AeroSvit Airlines

Ukrainian International Airlines Austrian Airlines

Business Services

Blue Chip Innoware

Lavina Music Clear Water Ukraine

OSG Records Management

Conference World, LLC OTIS ZAT Ukraine

Elanor Ukraine LLC WorldAPP, Inc.

Car Leasing & Sales

Avis Ukraine Winner Automotive, LLC

79 Consultancy, Investments & Marketing Research

Action Data Group EBS

Ancor SW Agency

Target

Atlantic Group

BDO Balance-Audit U Security Service

Educational & Training Services

Consortium for the Enhancement of Ukrainian Management International Institute Education (CEUME) of Business

European Centre for Marvin Competence Development

Ukrainian-American Liberal Arts Institute "Wisconsin International HOCK Accountancy Training University (USA) Ukraine"

Healthcare & Beauty Services

American Medical Centers Mimoza

US Optics, Ukrainian-American Imperial Tailoring JV Intra Ocular lenses Company The laboratory-clinics

Express Delivery Services

UPS

80 Hotels

Premier Hotels

Dnipro Hotel

Premier Palace Hotel Donbass Palace Hotel President Hotel

Riviera on Podol Boutique-hotel Lybid Hotel

Opera Hotel Rus Hotel

IT/ Telecom Services

Mirasoft Group Golden Telecom MTS (Ukrainian Mobile Communications CJSC)

Kyivstar GSM JSC Running Code

Insurance

Alfa Insurance

INGO Ukraine Joint-Stock Insurance Company Insurance Company "NOVA" OJSC Legal Services

Doubinsky & Osharova

Integrites Group Law Firm Arca

Konnov & Sozanovsky Pakharenko & Partners

81 Moving & Relocation Services

KLS Ltd Spicy Lime Group

Office Furniture & Equipment

Denza Workspace

Office Solutions Leater Ukraine

Real Estate, Offices & Leasing

Colliers International

Partner BP

Empire of the Water

Serviced Apartments First Realty Brokerage Ltd. 'Senator Apartments'

Retail Establishments

Balance Business Books Mars Ukraine

Travel Services

Bytsko Travel Company

Travel Centre TRIME Pilot Ltd

Sky Travel HRG Ukraine Ukreurotour

82 CHAMBER GOURMET CLUB

The Chamber Gourmet Club unites the best restaurants in Ukraine within the Chamber Member 2 Member Discount Card Program. Chamber Members enjoy discounts at some of the best places to dine in the country. Chamber continually seeks for more restaurants to add to the growing Gourmet Club. Full information on the discounts offered to Members by the Chamber Gourmet Club restaurants can be found on the Chamber website: www.chamber.ua/gourmet/.

Faberge Club Pleasure Café Arizona Restaurant 22, Rybalska vul. Nobel Restaurant +38 (044) 501-7979 3, Sportyvna pl. 25, Naberezhno-Khreshchatytska vul. 65, Chervonoarmiyska vul. +38 (044) 496-4135 +38 (044) 425-2438 +38 (044) 238-6971

IKRA 11, Pankivska vul. +38 (044) 288-1990 Riviera 15, Sagaidachnogo vul. Atelier Restaurant O`Brien`s Irish Pub +38 (044) 581-2828 17/52, B. Khmelnytskogo vul. 17A, Mykhailivska vul. +38 (044) 581-1081 +38 (044) 279-0214 IL Patio 5A, Besarabska pl. 5/13, Naberezhno-Khreshchatytska vul. +38 (044) 246-4327 SAN TORI O'Panas 41, Sagaidachnogo vul. AVALON 10, Tereschenkivska vul. +38 (044) 462-4994 3, Leontovycha vul. Shevchenko Park +38 (044) 234-7196 +38 (044) 235-2132 Korona-Club 4, Rohnidynska vul. Soho Restaurant Complex +38 (044) 235-7059 82, Artema vul. +38 (044) 289-0216 +38 (044) 484-0351 BELLINI'S Bar Panorama 53, B. Khmelnytskogo vul. 3, Sholudenka vul. +38 (044) 581-7070 +38 (044) 230-4792 Kureni Restaurant Swing Restaurant - Bar 4, Parkovaya doroga vul. 11, Volodymyrska vul. +38 (044) 360-5624 +38 (044) 279-2865

Pervak Centrale Restaurant La Casa del Habano 2, Rohnidynska vul. 28, Mezhygirska vul. +38 (044) 235-0952 +38 (044) 467-7826 13, Klovsky Uzviz Tampopo Restaurant +38 (044) 492-7448 55, Saksaganskogo vul. +38 (044) 284-3026

Concord LaLe Pesnya Karaoke Club 42/4, Pushkinska vul. 14, Sofiyivska vul. 22, Rybalska vul. +38 (044) 234-7788 TEATRO Restaurant +38 (044) 278-7566 +38 (044) 501-7979 53, B. Khmelnytskogo vul. +38 (044) 581-7070

Decadence House Le Grand Cafe 4, Muzeyniy prov. 16, Shota Rustaveli vul. +38 (044) 278-7208 Petergof Wine Restaurant T.G.I. Friday`s +38 (044) 206-4920 6, Pylypa Orlyka vul. 5A, Besarabska pl. +38 (044) 253-7358 +38 (044) 235-4264

Marokana Fashion Cafe Disco Radio Hall 24, Lesi Ukrainky bulv. Pier #6, Naberezhno- +38 (044) 254-4999 Club-Restaurant Terrace Khreshchatytska vul. 60A-B, Vozdvyzhenska vul. +38 (044) 428-7388 Planeta Sushi (at the Andreevskyy uzviz) 12, Khreshchatyk vul. +38 (044) 531-9933 57/3, Chervonoarmiyska vul. +38 (044) 270-6679 41, Sagaidachnogo vul. Doversole Restaurant Monaco Restaurant +38 (044) 594-2085 Yamamoto Restaurant 81, Chervonoarmiyska vul. 20, Velyka Zhytomyrska vul. 8/14, Zhytomyrska vul. 22, Rybalska vul. +38 (044) 531-1378 +38 (044) 590-0180 +38 (044) 311-2129 +38 (044) 501-7979

83 WELCOME TO OUR NEW CHAMBER MEMBERS IN 2008 *As of November 2008

ADV Kyiv Mohyla Business School ART&JOURNEY travel company, DMC LAW FIRM ARCA ASPEO, Inc. Lotsman, SPE AVentures MSBUD Ltd Advent International Ukraine LLC MURAVEJ, Trade Mark Allianz Ukraine Marvin Allseeds Group New Frontier Media Group Alltech Ukraine Noble Resources Ukraine Alvis Realty Europe LLC Noerr Stiefenhofer Lutz TOV Amstar Europe OTP Bank Atoll Group Investment Construction Holding OTP Capital Axor Group Oxford Klass Bank of Georgia PETERKA & PARTNERS Blitz-Inform JSC PFSoft Blue Chip PRINCIP Juridical Corporation Britannia Group Consulting Paritet Law Firm British Council Ukraine Parker&Obolensky Capital Human Resources Parkridge Retail Ukraine Chumak Partner BP Clifford Chance LLC Profi-Consulting AA Commercial Law Center, Charitable Organization Qarea Wireless Conference House Regal Petroleum Plc. Corstjens Ukraine Regus Group Credo-Classic Insurance company, CJSC, Member of UNIQA Risk Advisory Group plc, The Group Austria Roland Berger Strategy Consultants Cushman & Wakefield S4 Ukraine Dyckerhoff Ukraine LLC SMARTLINE LLC Dymov & Partners LLC Save Travel d/b/a KievApartment.com ECE Ukraine Sayenko Kharenko ESU ltd Schoenherr Ukraine LLC, Attorneys at Law Elanor Ukraine LLC Serviced Apartments 'Senator Apartments' Equipment Direct SimCorp Ukraine LLC European Centre for Competence Development Softline Garboozon.com Swedbank JSC Gepard Sports Paintball Club T.M.M. LLC Globalink Logistics Group Topfwell Consulting Ukraine HOSHVA PR Agency U Security Service HSBC Bank plc Representative Office in Ukraine U.A. Inter Media Group Limited IMTC-MEI UHY Prostir Ltd, Audit Company Inter-Telecom CJSC Ucapital Partners Intercontinental Kyiv Universal Bank Interiors International UK VISION TV Johnson&Johnson Vanco Energy Company Jones Lang LaSalle Viewdle Inc. K-TRADE LTD Visa International KDD Group York International, Firm with 100% foreign investments KM Partners Young & Rubicam Kelly Services Ukraine Yuventa Group LLC Knight Frank LLC Zelmer Ukraine

84 American Chamber of Commerce in Ukraine

42/44 Shovkovychna vul., LL1 Floor Kyiv, 01601, Ukraine

(380-44) 490-5800 Phone (380-44) 490-5801 Fax

e-mail: [email protected] www.chamber.ua