Message from the Chairman Despite the difficulties in 2008, the Chamber worked dili- gently 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 devel- oped numerous segmented Networking events, allowing our With kind regards, Membership to tap into the wealth of experience and oppor- tunities 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 ensur- ing that the organization remains relevant and value-added during these diffi- cult 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 lobby- ing and advocacy efforts, to provide quality segmented Networking opportu- nities, 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 expecta- tions of the Membership by providing concrete and actionable data.