CHAMBER IN-BRIEF by cgz15130


									CHAMBER IN-BRIEF                                                                                         Issue 21 November-December, 2009
THE OFFICIAL NEWSLETTER                               OF THE          AMERICAN CHAMBER                       OF      COMMERCE               IN    UKRAINE
Success Stories:                                     Chamber 2010 Board of Directors Elections
The Pharmaceutical Sector
see page 19
Veto on Increasing Excise Duty
Rates on Tobacco Products
see page 20
Customs Licensing Payments
see page 20
Moving Forward the Chamber’s
Partnership for Successfully
Competing in the Global Economy
see page 21

Featured Networking
Chamber “Get to Know the Candi-
dates” Business Networking Cocktail
see page 28
Chamber Silver Card Event
see page 28
Chamber YP-Net CSR Event
see page 29                          Chamber 2010 Board of Directors Elections
McHappy Day at McDonald’s
see pages 30
The Inaugural Meeting of the        Featured Policy Events:
Chamber Travel Club                 Chamber 2010 Board of Directors Elections.........................................see page 1
see pages 31                        Overseas Security Advisory Council’s Cyber Crime Conference........see page 3
Chamber Movie Premiere “2012”
                                    Chamber “In-Focus” Meeting with Mr. Viktor Yanukovych - Discussing Eco-
see pages 32
                                    nomic Policy Priorities...............................................................................see page 4
Chamber Welcomes                    Chamber “Insiders View” Meeting Discusses the Future of Ukraine:
New Members:                        Perspectives on the 2010 Presidential Campaign...................................see page 6
AXA Ukraine                         The Global Financial Crisis and the Repercussions for Business in Ukraine One
Ahtna                               Year after It All Began.................................................................................see page 7
Astrum Investment Management        The First Chamber Summit of Innovative Human Resource Solutions..see page 9
GEMINI LLC                          Chamber Fuel & Energy Market Leaders Breakfast......................................see page 11
International Investment Group      ChamberAgricultural Market Leaders Breakfast.........................................see page 12
Kinomania LLC                       Chamber “In-Focus” Meeting with Petro Verbytskyy, Head of the State
Kyiv Post                           Committee for Veterinary Medicine of Ukraine..............................................see page 13
LG Electronics Ukraine              Chamber “Insiders View” Meeting with Viktor Pynzenyk on the Global Financial
McKinsey and Company                Crisis and the Repercussions for Business in Ukraine – One Year after It All Be-
Promotions11                        gan................................................................................................................see page 14
Sandoz Pharmaceutical
                                    The Adam Smith Conferences’ 4th International Ukrainian Banking
                                    Forum...........................................................................................................see page 16
VOLIA                               EBRD’s 2009 Transition Report Presentation............................................see page 17
Ward Howell                         Chamber Participates in the Aspen Ukraine Seminar on Leadership......see page 18

                                                  2009 Chamber Official Service Providers                                                                  Chamber In-Brief Issue 21 November-December, 2009                               1
 Policy News
The Chamber is pleased to announce the winners of the 2010 Board of Directors Elections:

        CHAIRMAN                     VICE CHAIRMAN                     VICE CHAIRMAN                      SECRETARY
   Mr. Boris Krasnyansky             Mr. Patrick van Daele             Dr. George Logush                 Mr. Ian Borden
      Managing Partner                   Country Chair           Vice President Kraft Foods, Area        General Director
   PricewaterhouseCoopers                    Shell                      Director: Ukraine,              McDonald’s Ukraine
                                                                          Eastern Europe
                                                                         and Central Asia
                                                                       Kraft Foods Ukraina

       TREASURER                        TAX ADVISOR                     DIRECTOR                          DIRECTOR
      Mr. Nadir Shaikh                 Mr. Robert Shantz             Mr. Jacquot Boelen                Mr. Mark Burden
          Chairman                        Partner, Tax                General Manager                 Chief Financial Officer
          Citibank                          KPMG                  METRO Cash & Carry Ukraine          MTS (Ukrainian Mobile

         DIRECTOR                         DIRECTOR                        DIRECTOR                         DIRECTOR
    Mr. Peter Chernyshov                Mr. James Hitch               Mr. Andre Kuusvek                 Mr. Marcel Martin
      Managing Director                 Managing Partner           Country Director in Ukraine           General Manager
  Slavutich, Carlsberg Group      Baker & McKenzie - CIS, Lim-         EBRD - European              Coca-Cola Beverages Ukraine
                                              ited                 Bank for Reconstruction and                Limited

          DIRECTOR                        DIRECTOR                        DIRECTOR                          DIRECTOR
     Mr. Jacques Mounier              Mr. Jason Murphy              Mr. Alexander Rodionov             Mr. Andrzej Rozycki
 President of the Board of Man-         General Director                                             Regional Manager Ukraine,
            agement                                                     General Manager
                                   British American Tobacco         Procter & Gamble Ukraine        Russia, Turkey & Kazakhstan,
      Calyon Bank Ukraine          Ukraine / B.A.T. - Prylucky                                       Country Manager Ukraine
                                       Tobacco Company                                                         Cargill

                                        2009 Chamber Official Service Providers                                                   Chamber In-Brief Issue 21 November-December, 2009                 2
  Policy News
Overseas Security Advisory Council’s Cyber Security Conference

             Click For
             Full Video
             & Photos

The Chamber was pleased to host
the Overseas Security Advisory
Council’s Cyber Security Con-
ference which was timely during
this challenging period of increased
threats to the private sector from
on-line criminals. Key speakers of
the conference included: Mr. John
Tefft, U.S. Ambassador, Mr. Jorge
Zukoski, President, the Chamber,
Mr. Dmitry Shymkiv, General
Manager, Microsoft, representatives
of the Ministry of Internal Affairs
of Ukraine, representatives of the        US. Ambassador John Tefft speaks at the Overseas Security Advisory Council’s Cyber Security
Overseas Security Advisory Coun-          Conference
cil (OSAC) Washington, D.C. Head          appropriate and can be readily im-              •    To establish continuing liaison
Quarters, U.S. Embassy in Kyiv,           plemented given the current and an-                  and to provide for operational
U.S. Secret Service, and the U.S.         ticipated cyber threat environment.”                 security cooperation between
Federal Bureau of Investigation.                                                               State Department security func-
                                          Mr. Greg Hoobler, OSAC Senior                        tions and the Private Sector.
Opening the meeting, Mr. John             Coordinator for Threat Assessment,              •    To provide for regular and time-
Tefft, U.S. Ambassador mentioned:         OSAC Washington, D.C. provided                       ly interchange of information
“It is the first time when private        the audience with the overview of                    between the Private Sector and
industry, Ukrainian Government,           the Council’s mission and activity.                  the State Department concern-
and U.S. Government information           He mentioned that the Overseas Se-                   ing developments in the over-
security and cyber crime experts          curity Advisory Council (OSAC) is                    seas security environment.
came together in Kyiv to provide          a Federal Advisory Committee with               •    To recommend methods and
the business community with valu-         a U.S. Government Charter to pro-                    provide material for coordinat-
able information - focused on pri-        mote security cooperation between                    ing security planning and imple-
vate sector requirements - to as-         American business and private sec-                   mentation of security programs.
sist them in better protecting their      tor interests worldwide and the U.S.            •    To recommend methods to
commercial and private interests          Department of State. OSAC cur-                       protect the competitiveness of
in Ukraine; to raise participants’        rently encompasses the 34-member                     American businesses operating
awareness of the cyber crime threat       core Council, an Executive Office,                   worldwide.
environment, trends, and patterns         over 100 Country Councils, and
in Ukraine and throughout the re-         more than 3,500 constituent mem-                Delivering his presentation Mr.
gion; and most importantly, to pro-       ber organizations and 372 associ-               Ryan Garvey, OSAC Coordinator
vide information security recom-          ates. The objectives of the Coun-               for Information Security and Cyber
mendations to participants that are       cil as outlined in the Charter are:                             Continued on page 4
                                       2009 Chamber Official Service Providers                                                 Chamber In-Brief Issue 21 November-December, 2009                   3
  Policy News
      Overseas Security Advisory
        Council’s Cyber Security
          Continued from page 3
Threats, OSAC Washington, D.C.
mentioned that currently the major
threat is new age crimes that include
hacking, web defacement, cyber
stalking, web jacking, etc. Cyber
crime is the fastest-growing part of
organized crime with 95% financial
fraud and theft and 5% espionage.
                                           Cyber Crime Conference gathered professionals, civil servants and journalists to discuss issues
Commenting on the issue, Mr.               of information security
Dmitry Shymkiv, General Man-               Mr. Ronald Hofmann said: “Mi-                     ing key elements the company
ager, Microsoft mentioned: “In-            crosoft has technologies which help               should care about to protect from
creasing dependence of society             to create a protected information                 the cyber crime: the environment
on information technologies has            environment for business and gov-                 where the resources are located;
caused a situation when unauthor-          ernments. We want to help people                  the business partners and their at-
ized access to information has be-         to use their computers safely and                 titude to safety of shared commer-
come a significant threat. Microsoft       make investments to develop tech-                 cial information; the employees.
is working to help in understand-          nologies which make this real”.
ing these threats and effectively                                                            Summing up the Meeting, Mr.
addressing them at all levels in-          Mr. Ruslan Pakhomov, Chief of                     Jorge Zukoski, Chamber President
cluding    government,      personal       Cyber Crime Unit, Ministry of In-                 thanked OSAC and Microsoft for
or business. The core mission of           terior of Ukraine shared with at-                 sharing knowledge and providing
our activity in information secu-          tendees the results of the work,                  the Chamber Membership with ac-
rity is to provide relevant knowl-         which the Ministry is doing to pre-               cess to important information relat-
edge to defend against threats.”           vent cyber crime. Talking about                   ed to cyber security and practical re-
                                           information security Mr. Pak-                     sources to counter threats.    ACC
Sharing experiences of Microsoft,          homov mentioned the follow-
Special thanks to Microsoft Ukraine for their support of the
Chamber’s OSAC Cyber Security Conference
Chamber “In-Focus” Meeting with Mr. Viktor Yanukovych Discussing Economic
Policy Priorities
              Click For                    ber invited the Membership to meet                the economy, the business commu-
              Full Video                   with Mr. Viktor Yanukovych at a                   nity, and the investment environ-
              & Photos                     recent Chamber “In-Focus” Meet-                   ment are cornerstones of his agenda
                                           ing. The meeting, which included                  as a candidate for the presidency.
During this time of increased trepi-       key domestic and foreign inves-
dation regarding the impact of the         tors and representatives of diplo-
upcoming election campaign on              matic missions, was an important
economic development, the Cham-            signal from Mr. Yanukovych that                                    Continued on page 5
                                        2009 Chamber Official Service Providers                                                   Chamber In-Brief Issue 21 November-December, 2009                      4
  Policy News
     Chamber “In-Focus” Meet-              ship should strive to ensure that
  ing with Mr. Viktor Yanukovych           Ukraine is among the 20 most de-
           Discussing Economic             veloped countries in the world.
                 Policy Priorities
          Continued from page 4            Mr. Yanukovych highlighted the
                                           following policy priorities to ensure
                                           rapid economic growth: strength-
The Chamber and its Member-                ening the rule of law as well as the
ship appreciate the constructive           consistency and predictability of
dialogue and opportunity to discuss        governmental policies. To end the
the practical issues that businesses       political turmoil, constitutional re-
face, as well as to find solutions         form foreseeing strict division of
and adjust the policy agenda to im-        obligations between all branches of
prove Ukraine’s competitiveness.           power has to be undertaken in 2010.

Opening the meeting, Mr. Jorge             Commenting on the economic
Zukoski, the Chamber’s President,          situation in the country, Mr. Yanu-
thanked Mr. Yanukovych for fo-             kovych mentioned that stability is
cusing on the needs of the invest-         the main condition for Ukraine’s
                                           economic development and in-               Viktor Yanukovych, Leader of the Party of
ment community and expressed
the expectation among the busi-            vestment attractiveness. He de-
ness community that the political          scribed his priority agenda of             and transport infrastructure de-
situation will soon stabilize and          economic reforms as follows: en-           velopment would remain at the
that the new President of Ukraine          suring entrepreneurial freedom,            top of Mr. Yanukovych’s agenda.
will implement a consistent eco-           decreasing corruption, implement-
nomic policy directed at undertak-         ing tax reform, and decreasing             Summing up the meeting, Mr.
ing the complex reforms that are vi-       the VAT rate to 17%. Mr. Yanu-             Jorge Zukoski said that the
tal for the country’s future success.      kovych is not ready to cancel VAT          Chamber supports the intent
                                           completely, but will work toward           of Mr. Yanukovych and Party
In his speech, Mr. Yanukovych              simplifying VAT administration,            of Regions to realize complex
noted that as a former business-           making a debt offsetting plan pub-         reforms in fiscal and regula-
man he understands and shares the          lic, and restructuring state debt.         tory policy, which will improve
perspectives of the business com-                                                     Ukraine’s overall competitiveness.
munity. The leader of the Party of         To stimulate entrepreneurship, Mr.
Regions encouraged investors to            Yanukovych plans to provide easier         Expressing gratitude to Mr. Ya-
face the future optimistically, be-        access to credit facilities for the real   nukovych for joining the meeting
cause after the elections the situa-       sector of the economy, decrease in         and interacting directly with key
tion in the country should stabilize.      a step-by-step manner the National         foreign and domestic investors,
The main goal that Mr. Yanukovych          Bank’s interest rate, and liberalize       Mr. Zukoski mentioned that the
would pursue if elected as the next        the activities of investment funds.        investment community hopes for
president will be the national con-                                                   the same attention to critical eco-
solidation and modernization of            As it has traditionally, support-          nomic policy reforms from other
Ukraine. The new political leader-         ing metallurgy, machine-building,          key Ukrainian politicians. ACC

                                        2009 Chamber Official Service Providers                                                 Chamber In-Brief Issue 21 November-December, 2009             5
  Policy News

Chamber “Insiders View” Meeting Discusses the Future of Ukraine: Perspectives
on the 2010 Presidential Campaign
              Click For
              Full Video
              & Photos

As part of its mission to respond
to Members’ needs in the current
dynamic, confusing, and fluid po-
litical environment, and to provide
Member companies with targeted
value-added benefits, the American
Chamber of Commerce in Ukraine
(Chamber) held an “Insiders View”          Volodymyr Fesenko, Head of the Penta Center for Political Research, Jorge Zukoski, the Cham-
meeting that focused on the 2010           ber President, Andriy Yermolaev, President of the Sofia Center for Social Research
presidential election campaign. The        exact ratings of the candidates. But             early parliamentary elections, as
guest speakers at the meeting were         according to previous research, Mr.              Ms. Tymoshenko will try to main-
Volodymyr Fesenko, Head of the             Yanukovych enjoyed a significantly               tain the current coalition, enhancing
Penta Center for Political Research        better position than the other candi-            it with deputies from other factions.
and Andriy Yermolaev, President of         dates. At the same time, it is too early         The speakers believe that there is
the Sofia Center for Social Research.      to predict that Mr. Yanukovych will              a threat that an authoritarian re-
                                           win the campaign, as Ms. Tymosh-                 gime will emerge in this scenario.
Jorge Zukoski, President of the            enko usually has an aggressive and
Chamber, mentioned at the be-              efficient endgame to her campaigns               If Mr. Yanukovych wins the elec-
ginning of the meeting that the            and she may significantly improve                tions, the speakers believe he would
business community is looking              her position right before the vot-               try to negotiate with other political
forward to the upcoming elec-              ing. Also, in the second round there             parties. But more than likely, such
tions as an opportunity to unblock         might materialize a critical mass of             negotiations will be inefficient and
much-needed economic reforms.              people who do not support Mr. Yan-               he will have to announce early par-
Commenting on the election cam-            ukovych and who may vote for Ms.                 liamentary elections. Therefore, the
paign, experts agreed that they            Tymoshenko just to prevent Mr. Ya-               government will not form by Septem-
can now confidently identify two           nukovych from becoming president.                ber 2010. It is also more than likely
favorites – Viktor Yanukovych                                                               that the new government will con-
and Yulia Tymoshenko. The                  Post-election scenarios differ de-               sist of professionals, not politicians.
main competition is currently for          pending on who wins. The idea
third place, since that candidate          put forth at the meeting was that                The main problem the experts
could successfully negotiate for           if the winner is Ms. Tymoshenko,                 cited is that not all the candidates
a position on the winner’s team.           she would form a new government                  have plans for what to do after the
                                           within a month to a month and a                  elections. The year 2010 will be
Unfortunately, due to the quarantine,      half. The prime minister will be a               a difficult one for the Ukrainian
no sociological research was con-          BYuT representative, and merely a                economy and the newly elected
ducted during the last weeks before        technical prime minister. All power              president will have no choice but
this meeting took place, so it was         will accumulate in the presidential              to execute unpopular measures and
hard to identify with certainty the        administration. There will be no                 painful economic reforms. ACC

                                        2009 Chamber Official Service Providers                                                   Chamber In-Brief Issue 21 November-December, 2009                   6
  Policy News

The Global Financial Crisis and the Repercussions for Business in Ukraine
One Year after It All Began
              Click For                     the banking sector, a decrease of
              Full Video                    imports, and a worsening of the cri-
              & Photos                      sis during the pre-election period.
                                            This time around the Chamber ex-
The American Chamber of Com-                perts focused on analysis of the
merce in Ukraine (Chamber) con-             Ukrainian currency market, bank-
tinues to update Chamber Members            ing sector, capital markets, as
about the global financial crisis and       well as provided a bigger picture
its repercussions for business in           of Ukraine’s position compared
Ukraine. The current year contin-           with members of the Common-
ues to see challenges and changes           wealth of Independent States (CIS)
caused by the global financial crisis.      and Central and Eastern Europe.
The result is a situation that remains
unclear. To gain additional insight         Mr. Dominique Menu, represen-
into the current situation as well          tative of BNP Paribas and mem-
as some insight into the future, the        ber of the Supervisory Board of          Jacques Mounier, Calyon Bank Ukraine
Chamber hosted a series of special          UkrSibbank Bank stated that there        says banks should be able to provide lend-
“Insiders View” meetings dedicat-           is a lot of potential for Ukraine. Mr.   ing to economy
ed to the crisis and its impacts for        Menu pointed out that analysis of        provisions increased dramatically.
businesses operating in Ukraine.            the Ukrainian real estate market dur-    Banks have been busy provision-
This time around the Chamber in-            ing the last three years shows that it   ing their assets. They have done
vited guest speakers from leading           is developing well and currently the     it to such an extent that it resulted
banks and consultancies, who pro-           price for a square meter in Kyiv is      in losses. Losses could have been
vided “A View from October 2009.”           the same as in 2006. The stock ex-       compensated by capital increases.
                                            change curve for Ukraine shows           This provisioning exercise contin-
Opening the Meeting Mr. Jorge               similar trends as it had performed       ues. The other issue for banks is the
Zukoski, Chamber President,                 extremely well in 2007 and 2008,         increase of nonperforming loans
mentioned that when the crisis be-          and then there was a rapid decline.      (the loan is considered nonperform-
gan the Chamber established a                                                        ing when interest is not paid or the
platform to stimulate a proactive           Mr. Jacques Mounier, Chairman            loan has not been serviced for three
dialogue among the Membership               of the Board of Calyon Bank              months). Some banks are claim-
which the Chamber facilitated to-           Ukraine, Chamber Board mem-              ing to have reached a 35% level of
gether with senior banking and fi-          ber and Co-Chair of the Chamber          nonperforming loans. Mr. Mounier
nancial services representatives.           Banking and Financial Services           believes that in 2010 banks will still
                                            Committee focused on the analysis        be busy provisioning and they prob-
Mr. Zukoski provided a brief                of the Ukrainian banking sector. Mr.     ably will not lend, thus they will
overview of predictions made by             Mounier mentioned that Ukraine           not provide blood for the economy.
Chamber experts in 2008 when the            entered into the crisis from a good
crisis had just begun. A year ago           position, as margins in the bank-        The other serious issue for banks is
the Chamber experts forecasted              ing sector were very good. If we         a decrease of deposits (almost 30%).
things such as currency devalu-             analyze official data on the bank-       At the same time loans in UAH
ation, a lack of a domino effect in         ing sector, we will see that in 2009                   Continued on page 8
                                         2009 Chamber Official Service Providers                                                 Chamber In-Brief Issue 21 November-December, 2009             7
  Policy News
The Global Financial Crisis and
 the Repercussions for Business
           in Ukraine One Year
              after It All Began
        Continued from page 7
increased, because such companies
as Naftogaz should be financed
somehow. The population and cor-
porations should deposit UAH, but
they do not believe in the banking
system. Each time when UAH is
available, corporations and popula-
tion start purchasing hard curren-           Mr. Dominique Menu, representative of BNP Paribas and member of the Supervisory Board
cies. Mr. Mounier believes that it is        of UkrSibbank Bank, Mr. Jacques Mounier, Chairman of the Board of Calyon Bank Ukraine,
                                             Mr. Jorge Zukoski, the Chamber President, Mr. Nadir Shaikh, Chairman Citibank Ukraine, Mr.
critically important for banks and au-       Boris Krasnyansky, Managing Partner of PricewaterhouseCoopers
thorities to work together to restore
confidence. Banks and authorities            Shaikh stated that the dynamics are             houseCoopers and Chairman of
should be able to communicate that           changing. India and China, this year            the Chamber Board of Directors
the banking system is under control          are having GDP growth of 6% and                 mentioned that the crisis is not as
and that national currency is stable.        8% respectively while the rest of the           deep in Ukraine as it was expect-
In 2009 not one bank failed, the             world had a collapse. China and In-             ed. Speaking about liquidity in the
economy is step by step restarting.          dia are driving the engine and mov-             market, he sees that banks are not
                                             ing forward the world economy.                  lending, but there are not many
Mr. Nadir Shaikh, Chairman Ci-                                                               bankruptcies in Ukraine. People
tibank Ukraine and Treasurer of              Speaking about the equities mar-                are sitting on cash. They do not
the Chamber Board of Directors               ket, Mr. Shaikh mentioned that                  spend the money expecting that
opened his presentation providing            Ukrainian companies are already                 the economy will go down further.
insight regarding the type of recov-         planning IPOs. Eastern Europe and
ery which we can expect in Ukraine           emerging markets are doing well                 Commenting on the mortgage dy-
Mr. Shaikh mentioned that a V-               and there is a lot of recovery there            namics Mr. Krasnyansky mentioned
shaped recovery could be observed            and the volatility has come down.               that at the end of September 2009
in developed economies like U.S.,                                                            the overall amount of mortgages
Europe, UK and Japan with real               Among the factors which are going               issued by the banks in Ukraine
GDP going from positive numbers              to prolong the recovery in Ukraine,             was 139 billion UAH. Most of the
in 2008 between 0 and 1 down, neg-           Mr. Shaikh mentioned the follow-                mortgages in Ukraine were linked
ative 4-5% and then positive 1-2%            ing. The first and most important               to dollars and still the absolute
again by 2010. Ukrainian GDP is a            factor is political uncertainty, which          numbers are very small will not
negative 15% and next year a posi-           will probably not be resolved until             impact the economy significantly.
tive 2-3 % is expected. Therefore, if        the middle of the next year. This pro-
the level of productivity and the level      cess could delay foreign direct in-             Mr. Krasnyansky mentioned that the
of GDP is considered an expectation          vestment, privatization, and reform.            drop in export is significant from 32
of an L shaped recovery is realistic.                                                        billion to about 17 billion dollars.
                                             Mr. Boris Krasnyansky, Man-                     Most important factor which drives
Commenting on global trends, Mr.             aging Partner of Pricewater-                                   Continued on page 9
                                          2009 Chamber Official Service Providers                                                    Chamber In-Brief Issue 21 November-December, 2009                  8
  Policy News
The Global Financial Crisis and
 the Repercussions for Business
           in Ukraine One Year
              after It All Began
        Continued from page 8
it is the global demand in metals.
45% of export last year was met-
als and still 44% this year is metals.
The only industry which has grown
in absolute terms is agriculture.
But still the share of that industry        Members find the Chamber meetings on the Global Financial Crisis and the Repercussions for
is so small that it does not affect         Business in Ukraine of great interest and beneficial
the country that much. It will in           seem secure as of yet. Govern-                  sitioned when global growth re-
the future but not now. Factors that        ments all around the world work                 sumes by addressing issues that
will impact Ukraine’s recovery are          to restore confidence and stimulate             have negatively impacted the
outside of the borders because one          growth. The common view is that                 overall ratings of the country.
major factor is global metal prices.        global recovery will be slow and the
Therefore, looking at look at Brazil,       Ukrainian economy has a chance to               After the meeting all attendees
China, Middle East, Turkey, West-           speed up faster than others simply              had an opportunity to Network,
ern Europe and America in terms of          because it is so undercapitalized.              while enjoying a cold draft beer
markets for Ukrainian metals which                                                          generously provided by Slavu-
will in the short term be the only ac-      Summing up the meeting, Mr.                     tich, Carlsberg Group.     ACC
tual source of potential recovery for       Jorge Zukoski mentioned that to                 Special thanks as well
the country. Current level of prices        facilitate   economic      recovery             to the professional team
for metal is not that bad. We are al-       is to engage in implementing                    at Premier Palace Hotel
ready at the level of January 2007.         complex reforms. The Cham-                      for their support.
                                            ber developed the Chamber’s
In conclusion, Mr. Krasnyansky              “Partnership for Successfully
mentioned that the key to success           Competing in the Global Econo-
is to manage expectations down-             my” which presents a comprehensive
wards. The first signs of rebound           regulatory and legislative reform
in the U.S and Western Europe               agenda that would help Ukraine
have happened. People started to            to mitigate the current crisis and
talk about recovery but it does not         ensure that the country is well po-

The First Chamber Summit of Innovative Human Resource Solutions
                                            business cases implemented within               wished success to this new ini-
                  Photos from
                                            the Chamber Member Companies.                   tiative of the Human Resources
                  the Event
                                                                                            Committee driven by the Cham-
                                            The Summit was officially opened                ber’s HR Committee Co-Chairs:
The First Chamber Summit of                 by Ms. Oksana Panchuk, Dep-                     Ms. Lidiya-Nadych-Petrenko, JT
Innovative Human Resource                   uty Director of the Chamber,                    International and Ms. Valeria Ka-
Solutions took place gathering in-          who welcomed the speakers, as                   zadarova, Kelly Services Ukraine.
novators who shared a variety of HR         well as the broader audience and                             Continued on page 10
                                         2009 Chamber Official Service Providers                                                   Chamber In-Brief Issue 21 November-December, 2009                  9
  Policy News
   The First Chamber Summit of
    Innovative Human Resource
         Continued from page 9

 Search & Selection, Training
 & Development, Personnel Ad-
 ministration, Employee Engage-
 ment and Corporate Culture were
 the focus areas of the Summit.
 The broad audience enjoyed a
 wide range of speakers high-
 lighting a variety of HR busi-
                                           Chamber Members learning new Human Resource market trends at the First Chamber Summit
 ness cases which together with
                                           of Innovative HR Solutions
 professional moderating by Ms.
 Anna Shalina, Leader of Hu-               goals and direction and trust people.        Management & Development Pro-
 man Capital Advisory Services,            Training & Development was pre-              cess (defined as a critical element
 Deloitte, helped to make the              sented by two speakers: by Ms.               of Ernst & Young Business and
 Chamber’s HR Summit a success.            Oksana Voloshyna, Head of HR                 People First strategy), Competency
                                           Division, OTP Bank and Ms. Ma-               Center and of course Learning (pre-
Ms.     Lidiya    Nadych-Petrenko,         rina Zakharina, HR Manager                   sented by web-base learning). The
Employer Branding Manager, JT              Ernst &Young. Ms. Voloshyna                  speaker also specified the peculiari-
International started the session          started her presentation “Best Prac-         ties of EY Career Ladder (from the
with her presentation “Employee            tices in the Education System of             very junior internship position to
Engagement Survey” defining the            OTP Bank in Crisis” describing the           the Partner), Performance Man-
cornerstones of Employee Engage-           grounds of corporate culture and the         agement and Development Pro-
ment, as well as the objectives and        foundation of learning within OTP            cess Responsibilities and Actions.
methodologies of conducting JTI            Bank which resulted in establishing
Employee Engagement Survey                 a variety of employee development            Attendees also enjoyed the show-
2009 being a part of Promo Project         programs such as Institute of inter-         case “Honeymoon at Deloitte: On-
Goals which was highly successful.         nal Coaching, E-learning, Program            Boarding Program for New Em-
                                           of English language improvement,             ployees” delivered by Ms. Naila
Ms. Anna Podgornaya, HR Func-              Regional talent development pro-             Karimova, HR Director, Deloitte.
tion Leader, Microsoft continued           gram and the Program “RAZOM”.                The speaker outlined adaptation
the event highlighting Corporate                                                        cycle and on-boarding program ob-
Culture Strand described in presen-        Ms. Zakharina provided the attend-           jectives and peculiarities of its im-
tation “Empowering Employees -             ees with the showcase “EY Leads:             plementation at Deloitte. Touching
the Way to Business Success” esti-         Web-Based Resource Used for                  upon the on-boarding Program ob-
mating what empowerment really is,         Performance Management and                   jectives, Ms. Karimova mentioned
as well as describing the ways of im-      Development Process” outlining               certain benefits such as helping
plementing the concept within Mi-          the background of the program EY             build an optimistic attitude towards
crosoft emphasizing the importance         Leads launched in 2001, its main             the company, avoiding misunder-
to share leadership vision, align          components such as Performance                            Continued on page 11

                                        2009 Chamber Official Service Providers                                                Chamber In-Brief Issue 21 November-December, 2009              10
  Policy News
   The First Chamber Summit of           Employee Engagement was also
    Innovative Human Resource            presented Ms. Olesya Kyrylchuk,           The Summit was not a single
                      Solutions          HR Manager, IBM who shared her            one off event but a starting point
        Continued from page 10           expertise in the presentation “Social     for the future gatherings of HR
                                         Networking and Collaboration              Innovators. So, the next group
                                         Tools” highlighting the phenome-          of innovative, unique and vis-
                                         non of both social and technical so-      ible Human Resources cases
standings, helping new employee          cial networks as ones creating new        is coming soon - keep an eye
feel valued and moreover increas-        leadership model which is beneficial      out for future announcements!
ing the learning curve. As per the       both for business and an employee.
Deloitte practices in the area, the
speaker emphasized the following         An interesting experience on Search      Special thanks to JT Interna-
main aspects of the Program: Wel-        and Selection expansive program          tional Ukraine for their sup-
come e-mail which meets newly            was described by Mr. Igor Kuki-          port of the First HR Summit
appointed company member, orien-         shev, Head of HR Division, Er-           of Innovative HR Solutions!
tation, Pocket Guidebook+Buddy           ste Bank. His presentation “For-
Program, Counseling, Green Dot           mation of All-Ukrainian Bank
Game together with Welcome               Personnel Structure from the
Party, as well as HR newsletter          Ground-Up” highlighted the sourc-
and Online resource which all to-        es and channels for creating a new
gether make an employee’s life           team of Erste Bank from scratch,
comfortable to further provide           as well as all those challenge and
greater benefits for the Company.        achievements received.        ACC

Chamber Fuel & Energy Market Leaders Breakfast
Continuing to focus on providing         ever need a stable and predictable
important value added benefits to        regulatory environment and an ef-
our Members the American Cham-           ficient industry based dialogue
ber of Commerce (Chamber) hosted         with various regulatory bodies in-
a special “Fuel & Energy Market          cluding the Cabinet of Ministers
Leaders Breakfast” with CEOs of          and the Parliament. The Chamber
Chamber Member Companies at              Fuel & Energy Committee is pro-
the Radisson SAS Hotel to discuss        actively and successfully devel-
challenges for the fuel & energy         oping such a dialogue advocating
sector in the current turbulent en-      for development of an appropri-
vironment and ways to address the        ate legislative framework consis-           should be included to the Com-
needs of the community utilizing         tent with international standards.          mittee’s agenda. In particular
the gathered insight to adjust the                                                   changes in the taxation of loss-
Chamber’s Fuel & Energy Com-             CEOs of Chamber Members shared              es during energy transmission
mittee advocacy agenda to meet the       their vision of the market situation        should be addressed through
needs of our business community in       and defined the following policy            amendments to the legislation;
this rapidly changing environment.       priorities and strategies to be ad-         Sub Committee of the Fuel &
                                         dressed by the Committee in 2010:           Energy Committee on electricity
During these turbulent times fuel                                                    could be established;
& energy companies more than                Policy issues of electricity sector              Continued on page 12

                                      2009 Chamber Official Service Providers                                             Chamber In-Brief Issue 21 November-December, 2009        11
  Policy News
Chamber Fuel & Energy Market
            Leaders Breakfast
      Continued from page 11

   Committee should advocate for
   structural changes in electricity
   market to unblock investments;
   White Paper on the necessary re-
   form agenda for Fuel & Energy
   sector should be developed;
   Committee will continue advo-
   cating for amendments to Sub-            Attendees also agreed to establish        Special Meetings and Policy
   soil Legislation;                        new formats of Committee events           Discussions with government
   Transparency of anti-monopoly            such as:                                  officials from abroad. ACC
   regulations will stay at the top of
   the Committee agenda;                       Educational seminars for gov-
   Unite efforts with all stakehold-           ernment officials;
   ers around policy reform agenda             Special meetings for media (1-2
   for the fuel and energy sector.             times per year);

Chamber Agricultural Market Leaders Breakfast
In its continuing efforts to provide        Committee advocacy agenda. That        lack of VAT refunds has a nega-
important value-added benefits              agenda must change to meet the         tive impact on business operations.
to its Members and in response              needs of the business community in     It decreases manufacturing vol-
to numerous requests from agri-             this rapidly changing environment.     umes, reduces employment, and
culture companies, the American                                                    damages investor trust, as well as
Chamber of Commerce (Cham-                  Jorge Zukoski, President of the        lowers the competitiveness of the
ber) organized a special “Agri-             Chamber, emphasized the impor-         industry and adversely impacts the
cultural Market Leaders Break-              tance of the agricultural sector for   profitability of Ukrainian farmers.
fast” at the Radisson SAS Hotel.            the development of Ukraine and its
                                            competitiveness within the global      They agreed to develop a com-
The meeting gathered CEOs rep-              marketplace. He thanked the at-        mon position and strategy re-
resenting leading international and         tendees for their involvement in       garding issues of VAT refunds in
domestic companies who are among            the Chamber’s Agricultural Com-        the agriculture sector by work-
the biggest investors and employers         mittee and opened a discussion of      ing with other industry-based as-
in Ukraine’s agriculture sector. The        the challenges and opportunities       sociations in the sphere, such as
goal was to discuss the challenges for      that now exist. Attendees identi-      the Ukrainian Grain Association.
the agricultural sector in the current      fied and prioritized the main is-      The decision was also made to
turbulent environment and meth-             sues and strategies required to        conduct a special daylong semi-
ods of addressing the community’s           facilitate a positive resolution.      nar for State officials who are in
needs by using collective insight to                                               charge of regulating and controlling
adjust the Chamber’s Agricultural           Attendees agreed that a systematic                Continued on page 13

                                         2009 Chamber Official Service Providers                                               Chamber In-Brief Issue 21 November-December, 2009      12
  Policy News
   Chamber Agricultural Market
            Leaders Breakfast
       Continued from page 12

the country’s agricultural sector.
The seminar would educate par-
ticipants and disseminate interna-
tional best practices regarding the
regulation of the agricultural sec-
tor, with a focus on increasing the
competitiveness and efficiency of
this important area of the economy.      Ukraine (CMU) regarding price          on increasing the competitiveness
                                         regulation and a Decree by             of Ukrainian agriculture.   ACC
The Chamber will also continue           the CMU restricting the prof-
to advocate for land reform and          itability of    grain  elevators.
the adoption of related laws on          Taking into account the grow-
land cadastre and the land market.       ing importance of GMO prod-
Market intervention in the ag-           ucts and trade issues on the
ricultural sector was also de-           global agricultural market, the
fined as a key factor influenc-          Chamber created a special Work-
ing the industry. Pressing issues        ing Group on GMO regulations.
include the Draft Resolution
of the Cabinet of Ministers of           The Chamber will continue to focus

Chamber “In-Focus” with Petro Verbytskyy - Head of the State Committee for Veterinary
Medicine of Ukraine
            Click For                    Membership his thoughts about          ments to the Administrative Code
            Full Video                   the current situation in the veteri-   that introduce new rates for fines;
            & Photos                     nary medicine sphere of Ukraine        and the inter-departmental Order
                                         and about the implementation of         concerning control of governmen-
Continuing its working dialogue          new legislation regulating this        tal bodies over cargos. The Com-
with senior government offi-             sector, particularly inasmuch as       mittee for Veterinary Medicine
cials as it seeks to communicate         it covers veterinary inspections.      is developing amendments to the
its policy agenda, the American                                                 Law “On Veterinary Medicine”.
Chamber of Commerce in Ukraine           Commenting on the legisla-
(Chamber) held a special “In-Fo-         tive framework for veterinar-
cus” working meeting with Petro          ian control, Mr. Verbytskyy
Verbytskyy, Head of the State Com-       mentioned that it is sufficient
mittee for Veterinary Medicine           to ensure the necessary level of
of Ukraine (SCVMU). Mr. Ver-             oversight. Among recently ad-
bytskyy shared with the Chamber          opted acts, he named the amend-                   Continued on page 14

                                      2009 Chamber Official Service Providers                                            Chamber In-Brief Issue 21 November-December, 2009     13
  Policy News
Chamber “In-Focus” with Petro
  Verbytskyy - Head of the State
      Committee for Veterinary
           Medicine of Ukraine
       Continued from page 13

An issue that stimulated lively dis-
cussion was SCVMU Order #149
dated May 20, 2009, which intro-
duced changes to the SCVMU Or-
der #23 dated March 12, 2001 “On
Urgent Matters to Prevent and to
                                             Ms. Oksana Panchuk, the Chamber Deputy Director, Mr. Petro Verbytskyy, Head of the State
Liquidate Onsets of Cattle Diseases          Committee for Veterinary Medicine of Ukraine
on Encephalopathy and Other Prion
Diseases.” Both documents corre-             and because of a risky epizootic               also necessary to give inspectors
late with the appropriate Cabinet of         situation, the decision was made to            the certificate issued in the country
Ministers Decrees and Presidential           inspect EU-registered countries as             of the company’s origin. As to the
Orders that treat fighting epidemics.        well. The Order complies with inter-           frequency of inspections, Mr. Ver-
The Order adds EU-certified enter-           national and WTO norms, as a coun-             bytskyy mentioned that they will be
prises to the list of those enterprises      try has the right to check the quality         held once every 7–10 years, except in
subject to on-site inspections by the        of the products imported into its ter-         the cases of companies that have had
State Veterinary Service, thus ensur-        ritory. Participants in the meeting            significant breaks in their activity.
ing the quality of the products im-          were assured that the Veterinary
ported into Ukraine. The Order will          Committee has a sufficient number              Summing up the meeting, Oksana
take force on January 14th, 2010.            of experts to ensure that no delays            Panchuk, Deputy Director of the
                                             or problems arise with inspections.            Chamber, confirmed the Cham-
Mr. Verbytskyy reminded the audi-                                                           ber’s readiness to provide Members
ence that by 2009 all enterprises that       Inspection should be initiated by              and partners with updates about
had obtained European registration           the entity that needs the certificate.         the abovementioned issues and to
could import products without addi-          To make the inspection procedure               clearly communicate the procedures
tional inspections. But because there        efficient, a company should ensure             in question. The Chamber thanked
were cases in which products that            the involvement of the Veterinary              Mr. Verbytskyy for the comprehen-
these companies imported did not             Service of the country in which the            sive information he offered and the
correspond with quality standards,           inspection is being conducted. It is           openness of the discussion. ACC

Chamber “Insiders View” Meeting: Viktor Pynzenyk on the Global Financial Crisis and the
Repercussions for Business in Ukraine – One Year after It All Began
              Click For                      itself in Ukraine due to the speci-            (Chamber). To gain additional in-
              Full Video                     ficities of the country’s internal             sight into the current situation and
              & Photos                       political and economic situation,              to possibly forecast what the future
                                             continues to be of great concern to            might hold, the Chamber, in con-
The current global financial cri-            the Membership of the American                 junction with Chamber Member
sis, especially as it has manifested         Chamber of Commerce in Ukraine                              Continued on page 15

                                          2009 Chamber Official Service Providers                                                  Chamber In-Brief Issue 21 November-December, 2009                 14
  Policy News
Chamber “Insiders View” Meet-
    ing: Viktor Pynzenyk on the
Global Financial Crisis and the
  Repercussions for Business in
            Ukraine – One Year
              after It All Began
       Continued from page 14

InterContinental Kyiv, hosted a
special Chamber “Insiders View”
meeting on “The Global Finan-
cial Crisis and the Repercussions
for Business in Ukraine – One
Year after It All Began.” Viktor
Pynzenyk, the Chairman of the             Viktor Pynzenyk, the Chairman of the Ukrainian Reform Support Foundation, Jorge Jukoski,
                                          the Chamber President
Ukrainian Reform Support Foun-
dation, was the guest speaker.            good for the Ukrainian economy. It             That latter prediction is similar to
                                          has helped balance trade flows and             one made by Mr. Anders Aslund,
Mr. Pynzenyk provided the Cham-           boosted local producers. According             another well-known economist,
ber Membership with a compre-             to data the speaker provided, the              whom the Chamber was pleased
hensive overview of the Ukrainian         share of locally produced goods on             to host recently as part of its se-
economy and trends for its future         the Ukrainian market is significant-           ries of “Insiders View” meetings.
development. His picture of the           ly increasing. Mr. Pynzenyk said               The two respected but very differ-
economy was not optimistic, but           that another positive trend is that the        ent economists providing the same
rather comprehensive and measured.        rate of import decline is bigger than          prediction provides hope that the
                                          the rate of export decline, which is           Ukrainian leadership will final-
Mr. Pynzenyk mentioned that               helping to stabilize the Ukrainian             ly institute a real reform agenda.
Ukraine has experienced a sharp de-       economic situation. He is also con-
crease in economic activity. At the       cerned with the state budget, warn-            Summing up the meeting, Chamber
end of 2009 the decline will be of        ing that the Draft Budget 2010 con-            President Jorge Zukoski mentioned
about 15–16 percent of GDP. At the        tains overstated numbers, which                that the Chamber strongly believes
same time, the speed of decline in        could exacerbate the state debt.               that the only way to overcome the
manufacturing and construction is                                                        crisis is to engage in complex re-
slowing, giving grounds for hope.         Still, Mr. Pynzenyk remains opti-              forms. The business community is
The political elite’s populist poli-      mistic, noting that the crisis is, first       constantly encouraging the politi-
cies and the government’s inabil-         of all, an opportunity. Ukraine, he            cal leadership to develop a compre-
ity to make painful but necessary         said, has passed through the crisis            hensive reform agenda and follow
economic decisions are the biggest        that external factors caused and is            through with the process. The Cham-
cause of the sharp economic decline.      now experiencing a specific, inter-            ber and its partner organizations are
                                          nal Ukrainian crisis. He predicts that         ready to provide the support of ex-
Commenting on monetary policy,            the political elite will be unable to          perts from among the internation-
the guest speaker mentioned that the      avoid serious reforms in the future,           ally oriented business community
devaluation of the UAH has been           as doing so is no longer sustainable.          to facilitate the process.     ACC

                                       2009 Chamber Official Service Providers                                               Chamber In-Brief Issue 21 November-December, 2009                 15
  Policy News
The Adam Smith Conferences’ 4th International Ukrainian Banking Forum
The President of the American
Chamber of Commerce in Ukraine
(Chamber), Jorge Zukoski, chaired
a panel entitled “Bank Development
Strategies – Driving Your Bank
Agenda through to 2011” at the Adam
Smith Conferences’ 4th Internation-
al Ukrainian Banking Forum, which
took place in Kyiv on No-
vember 17th and 18th. Each
year more than 350 senior execu-
tives of leading financial institu-
tions from 20 countries around the
world come together to share ex-
periences, discuss common chal-
lenges, and generate fresh ideas.
The event is the annual meeting
place for key Ukrainian bankers            The 4th International Ukrainian Banking Forum gathered bankers from 20 countries around
and their peers from abroad, as            the world
well as for policymakers who regu-         viding an opportunity for the overall         viduals will be liberalized by 2013.
late the banking sector in Ukraine.        banking sector to become more bal-            Silvio Pedrazzi of Pravex-Bank
                                           anced, positioning itself for future          mentioned that the main business
The panelists included Silvio Pe-          consolidation and overall growth.”            of a bank is lending. Big banks,
drazzi, Chairman of the Supervi-                                                         including Pravex, which are very
sory Board of Pravex-Bank; Alex-           The main message of the panelists             liquid in hard currencies, are ready
andr Grishko, Deputy Chairman,             was that the banking system lived             to start lending to the corporate sec-
Head of Retail, Oschadbank; Bo-            through 2009, a year of survival;             tor, but under the current regula-
rys Tymonkin, Chairman of the              2010 will be a year of stabilization.         tory conditions this is hardly pos-
Board, Ukrsotsbank; Vitaliy Ma-            Boris Tymonkin of Ukrsotsbank                 sible. Therefore, the primary task
syura, Deputy Chairman of the              commented on the banking sector               for the National Bank of Ukraine
Board, Delta Bank; and Sergey              in general, forecasting that in 2010          is to create the proper conditions
Magluy, CEO of Areon Consulting.           banks will start lending. Credit fa-          to unblock lending to the economy.
                                           cilities will first be available to
Opening the discussion, Chamber            multinationals and then to big busi-          Panelists also discussed the in-
President Zukoski said, “The Ukrai-        nesses. By 2011 they will be avail-           struments that helped banks live
nian banking sector successfully           able to medium-size and maybe to              through the tough period. Vitaliy
navigated the beginning of the cri-        small businesses. As for credit for           Masyura from Delta Bank said his
sis. No large systemic bank failed.        individuals, Mr. Tymonkin hopes               bank used the following anti-crisis
The turbulent times of 2009 drove          that the banking sector will not re-          instruments: a new risk manage-
the sector to change tactics and ac-       turn to the massive lending that              ment system including stress testing;
knowledge the importance of bal-           went on before the crisis. He thinks          reduction of credit exposure per cus-
anced risk management emphasiz-            that lending for individuals will be          tomer; limiting loan maturity; reject-
ing quality of the overall portfolio.      available in 2010, but under very
Therefore, we see the crisis as pro-       strict conditions. Lending to indi-                        Continued on page 17

                                        2009 Chamber Official Service Providers                                                Chamber In-Brief Issue 21 November-December, 2009                16
  Policy News

   The Adam Smith Conferences’             loyal customers. Mr. Pedrazzi then            network. Boris Tymonkin noted that
     4th International Ukrainian           added that universal banks are more           the crisis brought into relief issues
                 Banking Forum             susceptible to the crisis and under-          of credit portfolio quality and that
         Continued from page 16            lined the importance of having a              it is critically important to facilitate
                                           developed culture of risk selection           development of a database of credit
                                           and monitoring, balanced powers               stories for credit bureaus. ACC
ing applications from risky industry       and controls in the governance sys-
sectors; and developing networks of        tem, and an optimized organization

EBRD’s 2009 Transition Report Presentation
On November 11, 2009 the Euro-
pean Bank for Reconstruction and
Development (EBRD) presented its
2009 Transition Report. The presen-
tation was delivered by Director for
Policy Studies from London Head
Quarters Jeromin Zettelmeyer. Mr.
Zettelmeyer came to Kyiv to pres-
ent a new issue of the Report, called
“Transition in Crisis”, which pro-
vides an outlook on the region’s
economic performance in the cur-
rent challenging circumstances.

This year’s Transition Report ex-
amines in detail the impact of the
global and economic crisis on the
countries of Central, South Eastern
and Eastern Europe, Russia, Central
                                           Andre Kuusvek from the European Bank for Reconstruction and Development during the 2009
Asia, the Caucasus and Ukraine.            Transition Report presentation

Dr. Zettelmeyer covered such top-          The format of the event includ-
ics as transition process in a new         ed presentation for the Member-
world environment, changes of the          ship of the American Chamber
institutions and policy frameworks         of Commerce in Ukraine and the
as well as of the market reforms           European Business Association
and trade integration, attractive-         as well as Networking session al-
ness of the financial liberalization       lowing representatives and lead-
and integration and market-orient-         ership of both organizations to
ed reforms, etc. Please click here         communicate more closely with
to see the Presentation (ENG).             the EBRD leadership.       ACC

                                        2009 Chamber Official Service Providers                                                Chamber In-Brief Issue 21 November-December, 2009                17
  Policy News

Chamber Leadership Participates in the Aspen Ukraine Seminar on Leadership

Recently,     Oksana     Panchuk,
Deputy Director of the Ameri-
can Chamber of Commerce in
Ukraine (Chamber), participated
in the Aspen Ukraine Seminar
on Leadership, entitled “Unit-
ing Diversity, Combining Differ-
ences to Successfully Compete
for a Better Future of Ukraine.”
It was held in Crimea from Octo-
ber 31st through November 6th.

The Aspen Institute is an inter-
national nonprofit organization
founded in 1950 as the Aspen In-
stitute of Humanistic Studies. To-
day it has partners in Berlin, Rome,
Lyon, Tokyo, New Delhi, and
Bucharest, as well as leadership
initiatives in the U.S., Africa, India,      Ukraine Seminar. It focused on           eration for young people, climate
and Central America. In Ukraine              globalization and increased com-         change and clean air for Kyiv, and
the Aspen Institute teamed up with           petition among countries for intel-      training orphans to prepare them
the Viktor Pinchuk Foundation                lectual and energy resources. This       for leading independent lives.
two years ago to initiate the Aspen          competition calls for efficiency and
Ukraine Seminar series. It offers            responsibility in policy-making.         Participants gained a new aware-
Ukrainian leaders the chance to              Representatives      from      differ-   ness of the organizations they lead
“reflect on what they think makes            ent spheres, including the Gov-          and the values they find important.
a good society, thereby deepening            ernment,      business,      science,    The Aspen Ukraine Seminar is fos-
knowledge, broadening perspec-               education, NGOs, public and              tering unique values-based leader-
tives, and enhancing capacity to             social work, the art world and           ship to help Ukraine’s policymak-
solve the problems leaders face.”            sport met to communicate, share,         ers better serve their communities
                                             listen, and learn. Combining dis-        and the country in general. ACC
Ms. Panchuk, along with oth-                 cussions with a practical approach,
er leaders representing dif-                 participants also prepared and pre-
ferent     Ukrainian       economic          sented projects aimed at addressing
spheres and regions, as well as              important social needs and foster-
representatives of Chamber Mem-              ing corporate social responsibility
ber companies and partner organi-            (CSR). Topics these projects cov-
zations, took part in the 3rd Aspen          ered included Ukraine-EU coop-

                                          2009 Chamber Official Service Providers                                                 Chamber In-Brief Issue 21 November-December, 2009      18

The Pharmaceutical Sector Healthy after Recent Attempt at Market Intervention
President Yushchenko has vetoed            rency terms at the level at which       cisions of Constitutional Court of
Draft Law # 3426 “On a Moratorium          they stood in June 2008, before         Ukraine #2-rp/99, dated March 2,
on Increasing the Prices on Drugs          the devaluation. The Draft clearly      1999, and #2-rp/2000, dated Feb-
and Medicines.” The Policy Team            violated market economy princi-         ruary 10, 2000, according to which
of the American Chamber of Com-            ples, international standards, WTO      similar actions on the part of the
merce in Ukraine (Chamber), along          norms, and Ukrainian legislation.       Parliament of Ukraine were recog-
with interested Members and part-                                                  nized as exceeding their authority.
ners, had been intensively advocat-        It violated the following pieces of     In addition, the Draft Law requires
ing for a veto. Throughout the entire      current legislation (this list is not   the expert opinion of the Ministry
lobbying campaign the Chamber’s            exhaustive): Article 3 of the Con-      of Finance regarding its cost impact
Policy Team and Healthcare Com-            stitution of Ukraine, according to      on the value of revenues or expendi-
mittee leadership, working with pol-       which only by the Cabinet of Min-       tures for the budget and proposals re-
icymakers, undertook a structured          isters of Ukraine can provide price     garding the feasibility of adopting it.
dialogue in order to educate deci-         policy; Article 10 of the Law of
sion makers on the negative conse-         Ukraine “On Prices and Price De-        The Chamber would like to thank the
quences of this type of legislation        termination,” which says that valu-     leaders of its Healthcare Committee
and of overt market manipulations.         ation changes for Government-fixed      and all other Members for their pro-
                                           and -regulated prices and rates         fessional support and engagement,
This ill-conceived and anti-market         on special kinds of manufactured        which led to the veto of this onerous
economy Draft Law envisaged that           goods and services must be carried      and poorly thought-through piece
foreign pharmaceutical companies           out in a certain order determined by    of populist legislation. Thank to
would have to fix the current pric-        the authorities responsible for price   all parties involved for making this
es for their products in local cur-        formation and regulation; and De-       lobbying effort a success. ACC

                                        2009 Chamber Official Service Providers                                              Chamber In-Brief Issue 21 November-December, 2009          19
Veto on Increasing Excise Duty Rates on Tobacco Products
The American Chamber of Com-                 set forth by the Law of Ukraine
merce in Ukraine (Chamber) is                “On the Taxation System”;
pleased that President Yushchenko
returned to the Parliament the ad-           The provisions of the Law do not
opted Draft Law #4707 On Amend-              correspond to the requirements
ments to the Law of Ukraine On               of the Budget Code of Ukraine
2009 State Budget of Ukraine On              in terms of how new excise duty
Excise Duty Rates on Tobacco                 rates enter into force;
Products with proposals for fur-
ther consideration by Parliament.            Moreover, the possible positive
                                             effect for budget revenues of this
The Chamber addressed Presi-                 increase in excise duty rates will
dent Yushchenko on October 27th              be neutralized by increased turn-
with the tobacco industry’s posi-            over in illegal production and a
tion regarding this issue. Their po-         shortage of legally manufactured
sition is based on the following:            products on the market.

   This legislative initiative con-       The Chamber will continue
   tradicts the procedure for mak-        its dialogue with Parliament
   ing decisions regarding chang-         to   ensure  that   the inter-
   es in taxes and duties and the         ests of the Membership are
   mechanism for paying them as           properly addressed.     ACC

Customs Treatment of Royalties and Licensing Payments
                                          goods. The Chamber’s position was         lated to the seller);
                                          stated clearly in recommendations         Computation of dutiable royal-
                                          prepared on March 3rd, 2009, on           ties;
                                          September 9th, 2009 and in the Let-       Rulings (general rulings and in-
                                          ter addressed to Prime Minister Ty-       dividual rulings).
                                          moshenko on September 23rd, 2009.
                                                                                  Recently the State Customs Ser-
                                          Core arguments, which form the          vice adopted the Order #900 “On
                                          Chamber’s position, are the fol-        Approval of the Amendments
                                          lows:                                   to the Methodological Recom-
                                                                                  mendations on Application of the
                                             Follow EU legislation;               Certain Provisions of the Cus-
                                             Definition of royalties for cus-     toms Code of Ukraine Regard-
                                             toms purposes;                       ing the Customs Value of Goods
In the beginning of 2009 the Cham-           Explaining conditions for adding     Imported into the Customs Terri-
ber approached the Customs au-               royalties to customs value (“re-     tory of Ukraine”. The Chamber is
thorities regarding development              late to the goods”, “condition of    pleased that the Customs authori-
of methodology of royalty and li-            sale of the goods”);                 ties have accepted the arguments
censing payments treatment during            Treatment of royalties paid to
definition of the customs value of           third parties (related and unre-               Continued on page 21

                                       2009 Chamber Official Service Providers                                             Chamber In-Brief Issue 21 November-December, 2009     20
 Customs Treatment of Royalties                                                     cisely amount of royalty to
       and Licensing Payments                2.It has been recognized that          be included to the customs
       Continued from page 20                when the importer includes             values should not be regard-
                                             to the customs value of goods          ed as lawbreakers with rel-
                                             royalty amounts based on es-           evant adverse implications.
presented by the Chamber                     timated data, underpayment
Policy Team and as a result:                 of import taxes (if any) is not     The Chamber would like to thank
                                             regarded       as      violation    Mr. Igor Dankov, Pricewater-
   1.Flexible guidelines have been           subject to automatic fines. Ac-     houseCoopers, and Mr. Alexan-
   established regarding inclusion           cordingly, under final text of      der Minin, KM Partners for their
   to the customs value of royalties         Order #900 importers that           professional assistance.  ACC
   based on estimated royalty data.          are not able to determine pre-

Moving Forward Chamber’s Partnership for Successfully Competing in the
Global Economy
                                          Economy” identifying Ukraine’s         troduction of transfer pricing rules
                                          principal tax challenges and pro-      consistent with OECD guidelines.
                                          viding practical recommenda-           The Ministry of Finance high-
                                          tions for enhanced tax competi-        ly appreciated the proposed
                                          tiveness, efficiency and fairness.     list      of     recommendations.
                                                                                 Participants of the meeting were
                                          The event gathered representa-         interested to discuss most of the
                                          tives of the expert and business       proposals and recommendations
                                          community as well as the State         and to continue the dialog as the
                                          Tax Administration, Ministry of        Ukrainian taxation system needs
                                          Finance and State Agency for           to be modernized to make Ukraine
                                          Investment       and     Innovations   a competitive, attractive and vi-
                                          chaired by the Deputy Minis-           able investment destination and to
                                          ter of Finance Denis Fudashkin.        respond challenges brought by the
                                          During the presentation partici-       current global economic turmoil.
                                          pants discussed the following top-
                                          ics: tax fairness and enhanced tax     We would like to thank the Cham-
                                          administration and enforcement,        ber Tax Committee as well as
                                          enhanced VAT laws and tax admin-       its leadership, Mr. Oleg Chayka,
Recently, the Chamber, as a               istration, consistency of accounting   KPMG, and Mr. Oleh Marchen-
Member       of   the     Investors’      and tax records and deductibility      ko, Magisters, for their continu-
Council     under    the     Cabinet      of business-related expenses, ex-      ous and professional support as
of Ministers, was invited to pres-        tended tax periods and deadline        well as regular involvement in
ent the Ten Tax Initiatives to Make       for tax fillings, taxation of intra-   many of the policy issues, which
Ukraine a More Competitive Tax            group financing, taxation of intra-    the Chamber addresses via its vast
Jurisdiction that are included in         corporate dividends, tax neutrality    network of contacts to appropriate
the Chamber’s analytical work-            of corporate reorganizations, elimi-   Ukrainian State officials. ACC
ing product “Partnership for Suc-         nation of insignificant taxes and
cessfully Competing in the Global         consolidation of certain taxes, in-

                                       2009 Chamber Official Service Providers                                             Chamber In-Brief Issue 21 November-December, 2009      21
 Committee News

The puzzle pieces above, that seamlessly join together to form the map of Ukraine, represent the
different Chamber Committees and through their combined efforts are a formidable force, rep-
resenting a vast majority of the internationally oriented investment community, pushing a re-
form oriented policy agenda forward for the benefit of Ukraine and the Chamber Membership.

                          Chamber Committees and Working Groups
Currently sixteen Committees             - Customs Committee                   of time, in industry and sector
work under the Chamber umbrella          - Fuel and Energy Committee           specific policy related issues. The
bringing together industry lead-         - Healthcare Committee                Chamber Committees are standing
ers and sector specific company          - HR Committee (Human Re-             and many of which have been ac-
experts to develop and create ad-          sources)                            tive for many years. On the other
vocacy and lobbying strategies           - IPR Committee (Intellectual         hand, the Chamber Membership
to positively, proactively and ef-         Property Rights)                    utilizes Working Groups to fo-
fectively impact issues of inter-        - IT Committee (Information           cus on specific issues and bring
est to the Chamber Membership.           - Technologies)                       together Members who are ex-
                                         - Legal Committee                     perts on that issue to develop and
The Chamber Committees ad-               - Overseas Security Advisory          execute an action plan to re-
dress pressing issues that will          - Council                             solve the problem and then dis-
positively impact the business en-       - PR Committee                        band. This structure is very ef-
vironment in Ukraine from many           - Real Estate Committee               fective in resolving specific
different sectors of the economy,        - Tax Committee                       issues in a short period of time.
including, but not limited to:           - Telecom Committee
                                         - Toastmasters Club                   Interested to learn more or to
- Agricultural Committee                 - Travel and Tourism Committee        get involved? If so, please con-
- Banking and Financial                                                        tact Oksana Panchuk, Cham-
  Services Committee                     The Committee structure enables       ber    Deputy    Director    and
- Corporate Social Responsibil-          the Chamber to engage interested      Head of the Policy Team at
  ity Committee                          Members, over an extended period        ACC

                                     2009 Chamber Official Service Providers                                          Chamber In-Brief Issue 21 November-December, 2009      22
 Committee News

        Chamber Fuel & Energy Committee Meeting

In November the Chamber Fuel &            Members Vasil Kisil & Partners.          nies. Unfortunately, current auc-
Energy Committee held its regu-                                                    tion system fails to comply with
lar meeting where attendees dis-          Discussing state regulation of fuel      all the objectives, in particular:
cussed the competitive environ-           prices, the Committee attendees              Ukrainian oil auction pricing is
ment in the oil refining sector and       mentioned that 90% of oil prod-              by times lower than the interna-
oil products market in Ukraine.           ucts in Ukraine are either imported          tional indicators;
                                          or produced in Ukraine from im-              One operator purchases every-
Committee participants discussed          ported crude oil and prices on the           thing, there is no competition;
Ukrainian antitrust legislation and       first and the latter are shaped at the       State owned companies suffer
compared it with EU practices. As         international level. Consequently,           loss worth millions of dollars.
a result of the discussion the fol-       price fluctuations in Ukraine re-        Please click here to find the presen-
lowing points were mentioned:             flect changes on European markets        tation.
   It is necessary to provide more        that are confirmed by transparent
   transparency and accessibility         Platt’s and Argus quotations. More-      The Chamber’s Fuel & Energy Com-
   of Anti-Monopoly Committee             over, fuel retail prices in Ukraine      mittee participants agreed to develop
   (AMCU) decisions regarding an-         are lower than in the EU. Only in        a letter to the Government on the is-
   ticompetitive concerted actions;       Russia are diesel prices lower than      sue of oil auctions, as well as include
   There should be unified approach       in Ukraine. Please click here to find    appropriate chapter in the White Pa-
   of the AMCU (central office and        the presentation on these issues.        per for the newly elected President,
   various regional departments) to                                                which the Committee is developing.
   the application of part 3 Article      Further, Committee members dis-
   6 of the Law of Ukraine “On the        cussed the issue of Ukrainian oil        The Chamber encourages all in-
   Protection of Economic Com-            auctions. Guest speaker Mr. Ser-         terested Members to join the
   petition” regarding establishing       giy Kuyun reminded the audience          Fuel & Energy Committee to par-
   and considering objective rea-         that implementation of auctions          ticipate in increasing transparency
   sons, to which similar actions of      to sell Ukrainian oil in 2000 was        and predictability of the fuel and
   market operators may be attrib-        aimed at solving the following           energy market of Ukraine by further
   utable;                                problems: achieve fair pricing for       harmonizing Ukrainian antimonop-
   The AMCU should adopt recom-           energy supply of the state owned         oly legislation with European stan-
   mendations (explanations) re-          companies; improve competition           dards as well as to engage actively
   garding its approaches;                on the market; increase profit-          in discussions of the regulation of
   The AMCU should adopt ex-              ability of the state owned compa-        the oil auctions in Ukraine. ACC
   planations regarding imposition
   of economic penalties (fines)
   including in case of committing
   anticompetitive concerted ac-
   tions, which should contain in
   particular non-exclusive of fac-
   tors that influence the amount of
   fines (increase/decrease)
Please click here to find the pre-
sentation on this issue by Chamber

                                       2009 Chamber Official Service Providers                                              Chamber In-Brief Issue 21 November-December, 2009          23
 Committee News

                 Chamber Telecom Committee Meeting

During the regular meeting of the
Chamber Telecom Committee Mr.
Mark Burden from MTS and Co-
Chair of the Chamber Telecom
Committee presented an update on
the recent appointments to relevant
governmental authorities: on Oc-
tober 6th the Transport and Com-
munications Ministry has relieved
Mr. Oleh Kopiika from the post
of acting General Director of the
Concern for Radio Broadcasting,
Radio Communications, and Tele-
vision and appointed Mr. Volody-
myr Ischuk as the acting General
Director. At the same time, Mr.
Kopiika was appointed as the first
Deputy General Director. On Oc-          with “0” and for international num-      service which could quite simplify
tober 29th the Cabinet of Ministers      bers removing “8-10” with “0-0”.         the total system of service provi-
dismissed Mr. Borys Shiyaniv from                                                 sion, has special scheme and archi-
the position of Deputy Minister of       Among others issues that covered         tecture of enterprises, new offers of
Transport and Communications.            during the meeting were: Zero            the service management system. Mr.
                                         advertisement, continuing the            Grigory Grishchenko, Nokia Sie-
The next point of the discussion         3G tender, and Law enforcement           mens Networks Ukraine shared his
was the Order of Dialing. On Oc-         regarding the use by consumers of        presentation with the Chamber Tele-
tober 14th the telephone operators       telecommunication services of the        com Committee membership. To see
changed the order of dialing in-         information or data related to the       the Presentation please click here.
tercity and international numbers.       pornography, violence, displays,
The following changes were made          racial or ethnic intolerance and ter-    The Chamber encourages all inter-
in compliance with the resolution        rorism, propaganda of drugs, viola-      ested Members to join the Telecom
of the Transport and Communica-          tion of intellectual property rights.    Committee so that they can work
tion Ministry dated September 29th,                                               closely on further improving the
2008, No.1200 “On Endorsement            The next part of the meeting was de-     legislative base in Ukraine’s tele-
of Amendments into the National          voted to the presentation of new net-    com sector. More specifically they
Numeration Plan of Ukraine”. In          work system Network of One which         can work on Order of Dialing, 3G
particular, the operators changed        proposes new challenges and oppor-       tender and other issues vital to the
the code of calls for intercity and      tunities for the connection opera-       sector’s development and to its at-
mobile numbers removing “8”              tors. It is the highly client oriented   tractiveness for investments. ACC

                                      2009 Chamber Official Service Providers                                             Chamber In-Brief Issue 21 November-December, 2009        24
 Committee News

            Real Estate Committee Meeting Update

The recent meeting of the Chamber’s
Real Estate Committee was held with
participation of Mr. Sergiy Slobody-
anyuk, Deputy Head of the Bureau
of Technical Inventarization (BTI)
on legal issues as a guest speaker.

Attendees discussed practical is-
sues on registering ownership
rights for unfinished construc-
tion objects in Kyiv. Mr. Slobody-
anyuk started with the overview
of the existing legislative basis in      of operation for such companies        sented some statistical data regard-
the respective sphere, mentioning         in Ukraine and abroad. The Cham-       ing pricing in Ukrainian market.
that norms stated in Article 331 of       ber was pleased to welcome rep-
the Civil Code are not executed in        resentatives from the UkrFinance       Please click here to see the Presen-
practice as opposed to the norms          collection company Mr. Christian       tation (ENG).
of Article 15 of the Law “On Reg-         Schuller, CEO, and Mr. Andrey Ny-
istration”. Attendees were par-           zhnyk, Head of Sales and Clients       The Chamber encourages all in-
ticularly interested in the process       Relations. Mr. Christian Schuller      terested Members to join the Real
of receiving technical character-         delivered presentation concern-        Estate Committee so that they can
istics for unfinished construc-           ing Ukrainian collection market,       actively participate in the discus-
tion objects in Kyiv and possible         particularly focusing on the ad-       sions of the industry related is-
ways to solve unregulated matters.        vanced debt solutions. The presen-     sues, especially of such a relatively
                                          tation contained information about     new in Ukraine and rather attrac-
The second part of the Commit-            main collection methods used by the    tive activity as collection practice,
tee meeting was devoted to the op-        UkrFinance company. Mr. Schuller       and to develop comments on and
eration of collection companies in        shared foreign experience of the       proposals for the respective State
Ukraine, problems and differences         same practice abroad. He also pre-     authorities of Ukraine.        ACC

          Banking and Financial Services Committee Meeting

The recent meeting of the                    All bad assets are aggregated          “Bridge bank” which is a spin off
Chamber Banking and Finan-                   from the system into the one           from a problem bank, i.e. a new
cial Services Committee was                  company, which should manage           legal entity primarily with good
devoted to the discussions of                them;                                  assets and relevant franchise val-
the issue of Sanitation Bank. It             “Hospital” bank or a “bad” bank,       ue, created for further sale to a
was mentioned that in the glob-              which will accumulate problem          new investor.
al practice there are three ba-              assets from other banks/compa-
sic models of Sanitation bank:               nies;                                          Continued on page 26

                                       2009 Chamber Official Service Providers                                            Chamber In-Brief Issue 21 November-December, 2009        25
 Committee News
 Banking and Financial Services
            Committee Meeting
        Continued from page 25

Currently the idea of Sanitation bank
creation in Ukraine is extensively
discussed, but it is not clear which
model the Government will choose.
Committee       participants      also
touched upon implications of NBU
Resolution # 541. According to the          Another novelty envisaged in the       Banking        and     Financial
document Sub debt of a bank can             Resolution is connected with the       Services Committee to engage
reach up to 100% of the tier 1 for          modification of the liquidity ratios   actively in a comprehensive and
2 years until early 2012, except            that the NBU asks banks to respect.    effective dialogue between the
of 50% today. This novelty was                                                     NBU and Ukrainian banks,
evaluated by Committee members              The Chamber encourages all in-         necessary for overcoming the
as positive for the banking sector.         terested Members to join the           banking sector crisis.     ACC

          Legal Committee Meeting
The Chamber Legal Commit-
tee held its regular meeting under
the stewardship of Co-Chairs Mr.
Olexander Martinenko, CMC Cam-
eron McKenna LLC and Ms. Olena
Shcherbyna, Sayenko Kharenko.
The discussion was dedicated to the
Draft Law #4353-1 “On Amend-
ments to the Law of Ukraine on
Bar” dated May 6th 2009 being
under the Parliament’s consider-
ation. The Chamber was pleased
to host a distinguished guest-
speaker Mr. Volodymyr Vysots-
kiy, Head of the Higher Qualifi-
cation Commission of Lawyers,
Cabinet of Ministers of Ukraine.

Mr. Vysotskiy made a detailed pre-          at the Parliament. The mentioned       well as opponents. Mr. Vysotskiy
sentation on the abovementioned             Draft is the third version submitted   highly supports and promotes it.
Draft Law. The speaker made a               by People’s Deputies Mr. Portnov,
brief historical reference to another       Mr. Pylypenko, and Mr. Oliynyk.
Draft Law that had been registered          This document has supporters as                  Continued on page 27

                                         2009 Chamber Official Service Providers                                               Chamber In-Brief Issue 21 November-December, 2009   26
  Committee News
       Legal Committee Meeting             tory involvement of the lawyers         tee Membership plans to develop
        Continued from page 26             at the unique lawyers’ organiza-        its position on the mentioned Draft
                                           tion which will make accredita-         Law and to address it to the Govern-
                                           tion of the specialists by special      mental authorities for consideration.
                                           exams and intermediate audits.
He has also drawn attention of                                                     The Chamber encourages all in-
the attendees to the number of ar-         An intense discussion on a num-         terested Members to join the
ticles and provisions, in particular,      ber of issues was held by the par-      Legal Committee to engage
schemes of the lawyers’ business           ticipants regarding the aforemen-       actively in the discussions and
activity, definition of the “lawyers’      tioned Draft Law’s positions.           review of the Bar Law and its
activity” as well as their paid and        In particular, attendees were inter-    provisions to develop a com-
unpaid activities. The document            ested in taxation of the lawyers’       mon position and address to the
consists of the norm of obliga-            activity, etc. The Chamber Commit-      relative State authorities. ACC

Educational Project “HR University” of the Chamber Human Resources
Recently the Chamber Human                 tional impact on the successful
Resources Committee launched               development of the organization.
its Educational Project “HR                In order to familiarize future
University” which is devel-                young professionals with the lat-
oped for future specialists in the         est theories, trends and develop-
field of personnel management.             ments in personnel management,
                                           the Chamber HR Committee
The Chamber Human Resources                developed a program for students
Committee Leadership together              of 3-5 courses, consisting of 16
with the HR department of the              lectures on the following topics:
Kiev National Economic Univer-
sity (KNEU) starts implementing               Selection and adaptation of per-
educational program “HR Univer-               sonnel;
sity” which is expected to expand             Testing and assessment centers;      First Lecture of the Chamber HR University
to other universities in the future.          Employer brand management;           of personnel management, tai-
                                              Personnel administration;            lored to the needs of today’s busi-
Human        Resources     manage-            Training and development;            ness and, in collaboration with the
ment has long moved beyond                    Compensation and benefits;           Graduate School, will help develop
the purely administrative func-               Corporate culture;                   a staff management training pro-
tions, such as hiring or compen-              Internal communications;             gram, corresponding to the new
sation issues. More and more                                                       economic realities, making gradu-
HR specialists are working with            Career development and budgeting.       ates in demand at the labor market.
senior management on strate-               Lectures,    containing     theoreti-
gic business planning. Their               cal and applied parts, will be          The Chamber encourages all inter-
experience and knowledge, as re-           read by leading HR practitioners        ested Members to join the Human
flected in the proposals and chang-        from the Chamber community.             Resources Committee to actively
es to those policies or any other          This project will provide an op-        participate in the new educational
companies, often have an excep-            portunity to get trained in the field   project “HR University”.    ACC

                                        2009 Chamber Official Service Providers                                               Chamber In-Brief Issue 21 November-December, 2009            27
  Networking Events
Chamber “Get to Know the Candidates” Business Networking Cocktail
                Photos from
                the Event

The Chamber held a traditional
“Get to Know the Candidates”
Business Networking Cocktail,
which took place in an informal
atmosphere of O’Brien’s Irish Pub
on December 3rd. The Network-
ing event was open to the entire
Membership and gathered rep-
resentatives of many Chamber
companies to Network with the
potential Board Members who
were up for election in Decem-
ber and ask them firsthand what
they plan on doing if elected to
add to the further success and
development of the Chamber.
                                          Enjoying cold draft beer while networking with candidates to the Chamber Board
This event was held in a friend-
ly, informal atmosphere with no           Directors. This excellent Network-
speeches or presentations. Cham-          ing event with great conversations,
ber Members enjoyed an excellent          cold draught beer and tasty treats pro-
opportunity to promote their ideas        vided to Chamber Members at dis-
and share their opinions with their       counted prices, became another fun,
fellow Members, who were go-              relaxing and very important evening
ing to elect the Chamber Board of         with friends and colleagues. ACC

Chamber Silver Card Event Beaujolais Nouveau Wine Tasting
                Photos from
                the Event

American Chamber of Commerce in           a professional sommelier, as well as            issues as well as socialize in a re-
Ukraine (Chamber) in conjunction          learn a special wine tasting menu.              laxed and constructive atmosphere.
with Chamber Members METRO
Cash & Carry Ukraine and Opera            This exclusive Chamber Silver                   Beaujolais nouveau is a red wine
Hotel were pleased to host Chamber        Card Event is only open to Cham-                made from Gamay grapes produced
COI & Silver Card holders at the          ber Discount Card Holders as an                 in the Beaujolais region of France.
recent Chamber Silver Card Event          extra Membership benefit and pro-               It is the most popular vin de primeur,
that took place on November 19th          vides our Members with an excel-                fermented for just a few weeks then
at Opera Hotel “Symphony Grand            lent chance to Network with other               officially released for sale on the
Hall”. All guests during the evening      key business professionals provid-              third Thursday of November. ACC
had an opportunity to enjoy excel-        ing an opportunity to discuss im-
lent Networking, wine tasting with        portant business and political                                Continued on page 29
                                       2009 Chamber Official Service Providers                                                Chamber In-Brief Issue 21 November-December, 2009              28
  Networking Events
      Chamber Silver Card Event
           Beaujolais Nouveau
                   Wine Tasting
        Continued from page 28

The Chamber would like to thank
its Partners METRO Cash &
Carry Ukraine and Opera Hotel
for helping to organize this event!

                                            Chamber Members Networking while enjoying a very special wine tasting

Special thanks to Sponsors of the                                                                                          ACC

Chamber Young Professionals Network (YP-Net) CSR Event “Who Let the Dogs
                 Photos from
                 the Event

On the last Saturday of November,
the Chamber invited all Members to
get involved and be socially respon-
sible through visiting the “SOS”
shelter for dogs and cats during
the Chamber YP-Net CSR event
entitled “Who Let the Dogs Out?”

The whole event was full of love
and care. Both shelter workers and
the animals were very grateful for
the visit and all that great work done
by Chamber volunteers. Although
it was impossible help all dogs and         Chamber Members helped the “SOS” animal shelter during the Chamber CSR event
cats (there are about 1,500 dogs and                                                                    Continued on page 30
                                         2009 Chamber Official Service Providers                                                 Chamber In-Brief Issue 21 November-December, 2009            29
  Networking Events
   Chamber Young Professionals             ments like medicines and donations.            Sponsors of the Event:
    Network (YP-Net) CSR Event             The Chamber would like to thank
      “Who Let the Dogs Out?”              Kyiv Post for covering the event.
        Continued from page 29             If you missed it, you can find it
                                           on-line at

208 cats in the shelter), but volun-       We are looking forward to welcom-
teers did their best to be as helpful      ing all interested Chamber Members
as possible. They repaired a num-          at the upcoming Chamber Events!                Media Partner of the Event:
ber of animal houses, helped shelter
staff to clean the territory, painted      Special thanks for Coca-Cola Bev-
fences, fed animals and, of course,        erages and Kraft Foods Ukraina
did not forget such important ele-         for their continuous support! ACC

McHappy Day at McDonald’s
The President of the American
Chamber of Commerce (Chamber),
Mr. Jorge Zukoski, participated
in the charitable event “McHap-
py Day” hosted by McDonald’s
Ukraine and International Chart-
able Fund “Ukraine 3000”.

During the event Mr. Zukoski
helped to sell symbolic “hearts”
together with other well-known
athletes, pop and TV stars: Vitaliy
Kozlovskyi, Nataliya Valevskaya,
Aleksandr Krykun and many others.

Media partner of McHappy Day
Chamber Member Gala Radio set
up a mini-studio at the restaurant
and made live on-air interviews            Jorge Zukoski, the Chamber President and Ian Borden, General Director McDonald’s Ukraine
                                           at McHappyDay
with the guests. Visitors were im-
pressed by the opportunity to buy          held since 2002. During these years            medical institutions in 19 cities of
charity goods from famous people.          McDonalds Ukraine directed chari-              Ukraine. This year McDonald’s
                                           table assistance in the amount of              raises money to buy defibrilla-
“McHappy Day” is a traditional             4,100,000 UAH to purchase medi-                tors for regional children hospitals
charitable event, which has been           cal equipment for 40 children’s                in 20 cities of Ukraine.      ACC

                                        2009 Chamber Official Service Providers                                                Chamber In-Brief Issue 21 November-December, 2009                 30
    Networking Events
The Inaugural Meeting of the Chamber Travel Club
American Chamber of Commerce
in Ukraine (Chamber) in conjunc-
tion with Chamber Members Pre-
mier Palace Hotel, Sky Travel HRG
Ukraine and ART&JOURNEY
Travel Company, DMC was pleased
to hold the Inaugural Meeting of the
Chamber Travel Club that took place
on November 9th in the Terracotta
Restaurant at the Premier Palace
Hotel. All attendees enjoyed a fes-
tive night shaking the winter blues
off Networking and making busi-
                                          Jorge Zukoski, the Chamber President, opening the first meeting of the Chamber Travel Club
ness contacts while enjoying deli-
cious food and beverages as well as           won a dinner certificate from                na, Art&Journey travel company,
entertainment and the possibility to          Jardin Restaurant (500UAH);                  DMC for their valuable input that
walk away with some valuable gifts.       •   Mr. Mikhail Kissin, 3M Ukraine               made the whole event possible!
                                              – won a two-day weekend
The meeting of the Travel Club                “Kyiv Holiday” package from                  The Chamber would also like
was dedicated to the upcoming                 Premier Palace;                              to thank Sponsors of the event:
winter holidays season and ideas          •   Mr. Alexander Pigolenko,
for its pastime. The respected                Travel Centre TRIME – won
presenters brought to life the at-            two-nights in Yalta at the hotel
mosphere and coloring of pos-                 “Oreanda” from Premier Ho-
sible journeys as well as great               tels;
prizes given away to lucky winners.       •   Ms. Elena Myronova, Price-
                                              waterhouseCoopers – won a
All attendees had a wonderful op-             brunch for two people at Tera-
portunity to win splendid prizes in           cotta Restaurant.
the business card lottery. We would
like to congratulate:                     Representatives of the Travel
                                          & Tourism realm had a chance
•   Mr. Giovanni Capellino, Euro-         to give away to the guests their
    pean Commission Delegation –          promo products at the event.
    won two roundtrip tickets from        We would like to thank every-
    Ukraine International Airlines;       body for coming and the Cham-
•   Ms. Nuria Rocamora Molto,             ber Events Team looks for-
    Embassy of the Kingdom of             ward to see all of you again
    Spain – won a dinner certifi-         during upcoming Chamber events!
    cate from Jardin Restaurant           Special thanks to Ms. Alexan-
    (500UAH);                             dra Plakhota, Premier Palace, Ms.
•   Mr.    Oleksiy     Povolotskiy,       Valeria Luyk, Sky Travel HRG
    Squire, Sanders & Dempsey –           Ukraine, and Ms. Larisa Dyubi-                                                      ACC

                                       2009 Chamber Official Service Providers                                                Chamber In-Brief Issue 21 November-December, 2009                   31
  Networking Events
Chamber English Language Movie Premiere “2012”
                 Photos from
                 the Event

Chamber Members together with
their families and friends had an
opportunity to enjoy exciting and
sensational Hollywood thriller
“2012” during the Chamber Eng-
lish Language Movie Premiere.

All guests had a glass of compli-
mentary cold draft Slavutich beer
from Slavutich, Carlsberg Group,
plenty of Coca-Cola products from
the Chamber 2009 Official Ser-
vice Provider Coca-Cola Bever-
ages Ukraine Limited and tasty
snacks from Kraft Foods Ukraina.

This time for all guests the Cham-
ber created a special opportunity for
Chamber members to pay for their             Few minutes left before the debut of the thriller “2012” at the Chamber English Movie Premier
tickets on-line and receive a discount
price for a ticket. They also were wel-
come to participate in the Chamber
random lottery and win cool prizes.

Special thanks to Sponsors of
the Chamber Movie Night:
Coca Cola Beverages Ukraine
Ltd, Kraft Foods Ukraina, Slavu-
tich, Carlsberg Group and What’s
On for their continuous support.

We are looking forward to wel-
coming all interested Cham-
ber Members at the upcom-
ing Chamber Events!      ACC

                                          2009 Chamber Official Service Providers                                                    Chamber In-Brief Issue 21 November-December, 2009                    32
 Members News
Russia’s Top Public Private Partnerships Lawyer Joins Magisters
                                          hostile takeover defense and dis-       Kirill Ratnikov said: “Magisters
                                          tressed assets sales. Kirill worked     is one of the leading and most dy-
                                          on a number of M&A transactions         namic law firms in the CIS. I am ex-
                                          representing BHP Billiton Com-          tremely pleased to take on this new
                                          pany, Coca Cola HBC Eurasia,            challenge and I look forward to
                                          Golden Telecom, Telenor, VTB,           working on CIS wide projects to-
Moscow, 3 December 2009. Magis-           VTB Capital, and several invest-        gether with great Magisters team.”
ters, a leading CIS-based law firm,       ment and private equity funds.
announces that Kirill Ratnikov,           Kirill Ratnikov regularly represents    Dmitry Dyakin, Magisters’ Manag-
previously Partner at CMS Inter-          minority and majority sharehold-        ing Partner in Moscow said: “Kirill
national B.V., has joined Magis-          ers in a wide range of corporate        has become the second key appoint-
ters Moscow office as a Partner.          conflicts. Among the completed          ment at Magisters in one month.
                                          projects: successfully defending        In November, Clemens Schlotter
Mr. Ratnikov specializes in infra-        Ilim Pulp Enterprise, Slavneft, busi-   joined the firm to lead the German
structure and Public Private Part-        ness assets owned by A1 Group,          Desk in Moscow. I am sure that
nerships (PPPs), M&A, restructur-         several power companies as well as      Kirill’s standout name and profes-
ings, and capital markets. Ranked         representing minority shareholders      sional reputation is a tremendous
as a leading Russian expert in            of tobacco companies and a lead-        addition to Magisters’ rapidly grow-
PPPs by Chambers Europe, has              ing Russian mobile operator. Kirill     ing team. His exceptional wide
been appointed Head of Magis-             also advised a large Russian hold-      ranging experience, deep knowl-
ters’ CIS-wide Infrastructure and         ing in its long-lasting restructur-     edge of the market and strong in-
PPP Practice. Moreover, he will           ing exercise involving more than        dustry contacts will considerably
lead the firm’s expanding M&A             80 companies in 5 jurisdictions.        enhance Magisters’ expertise in
and Corporate team in Russia.                                                     the respective practice areas.”
                                          Mr. Ratnikov is ranked in the first
Kirill has outstanding experi-            tier for Russia in Chambers Europe      Andrew Mac, Magisters’ Man-
ence in representing the Russian          2009, “highly recommended” by           aging Partner in Kyiv and Head
Government and private sector             PLC Which Lawyer? 2009; and is          of M&A and Corporate Prac-
in key PPPs such as construc-             listed among leading profession-        tice said: “I am delighted to
tion of Boguchanskaya Hydro               als by European Legal Experts           welcome Kirill on board our
Power Station, Pulkovo airport            2009 and Best Lawyers 2009. He          Magisters team. Kirill is recognised
modernization,         construction       is a member of the Russian State        as the leading expert in Private
of Moscow-St. Petersburg toll             Duma’s Advisory Council on PPPs.        Public Partnerships and will rein-
road, Orlovsky tunnel, Volgograd                                                  force our capabilities in Ukraine,
bypass, Moscow Central Ring               A Lomonosov Moscow State Uni-           Russia, Kazakhstan and Belarus.
Road, Chita and Kyzyl-Kuragino            versity graduate, Kirill has obtained   He is equally well recognized for
railroads as well as other trans-         his LL.M. at Yale University and        his M&A work. This is a great ad-
portation, healthcare, water treat-       his Ph.D. in Law at Russia’s Insti-     dition to Magisters full service
ment and waste incineration proj-         tute of State and Law. Kirill started   offerings with PPP now to be be-
ects totaling over USD 50 billion.        his career at Freshfields Bruckhaus     come an addition to our leading
                                          Deringer and continued his profes-      CIS Corporate, Arbitration and
Kirill Ratnikov has equally success-      sional growth at Coudert Broth-         Litigation, Banking & Finance, Tax
ful practice in M&A, restructuring,       ers and CMS Cameron McKenna.            and Oil & Gas practices.” ACC

                                       2009 Chamber Official Service Providers                                              Chamber In-Brief Issue 21 November-December, 2009      32
Gourmet Club

          The Gourmet Club unites the best restaurants in Ukraine within the Cham-
          ber’s Member 2 Member Discount Program. Chamber Members enjoy
          discounts at some of the best places to dine in the country. Chamber continu-
          ally seeks for more restaurants to add to the growing Gourmet Club.     ACC

   Arizona Restaurant           Atelier Restaurant                AVALON               Azhur Disco Club
   25, Nab.-Khreshcha-       17/52, B. Khmelnytskogo         3, Leontovycha vul.       3, Leontovycha vul.
        tytska vul.                     vul.                 +38 (044) 234-7494        +38 (044) 234-7494
   +38 (044) 425-2438          +38 (044) 581-1081

         Belcanto                 BELLINI’S Bar              Centrale Restaurant             Concord
    28, Fizkultury vul.      53, B. Khmelnytskogo vul.       28, Mezhygirska vul.      42/4, Pushkinska vul.
   +38 (044) 499-3631            +38 (044) 581-7070          +38 (044) 467-7826         +38 (044) 234-7788

     Decadence House           Doversole Restaurant           Fiji Lounge Bar                 IKRA
  16, Shota Rustaveli vul.   81, Chervonoarmiyska vul.       14v, Sagaidachnogo         11, Pankivska vul.
    +38 (044) 206-4920           +38 (044) 531-1378                  vul.              +38 (044) 288-1990
                                                             +38 (044) 425-5578

 Korsar Restaurant-Bar          Kupetcheskiy dvor
                                                             Kureni Restaurant         La Casa del Habano
 14v, Sagaidachnogo vul.         24 km, Stolychne
                                                             4, Parkovaya doroga        13, Klovsky Uzviz
   +38 (044) 425-5578                 Shosse
                                                             +38 (044) 360-5624        +38 (044) 492-7448
                                +38 (067) 502-9289

        L`Accente                     LaLe                      Le Grand Cafe          Marokana Fashion
  5, Lesi Ukrainky bulv.        14, Sofiyivska vul.            4, Muzeyniy prov.               Cafe
   +38 (044) 200-5001                                         +38 (044) 278-7208
                                +38 (044) 278-7566 Official Service Providers         24, Lesi Ukrainky bulv.
                                  2009 Chamber
                                                                                       +38 (044) 254-4999

                                                LUCKY PUB
                                           Beer Bar & Restaurant
                                          13, Chervonoarmiyska vul.
                                              +38 (044) 499-1313                                           Chamber In-Brief Issue 21 November-December, 2009      34
Gourmet Club

  Mocco Restaurant Bar                  Mon Ami                    Monaco Restaurant           O`Brien`s Irish Pub
  15, Khreshchatyk vul.           10, Shovkovychna vul.          20, Vel. Zhytomyrska vul.    17A, Mykhailivska vul.
   +38 (044) 230-9230              +38 (044) 253-3008               +38 (044) 590-0180         +38 (044) 279-0214

          O’Panas                Panorama , Jazz, Wine                   Petergof               Riviera on Podol
  10, Tereschenkivska vul.              & Cigars                     Wine Restaurant          15, Sagaidachnogo vul.
      Shevchenko Park              3, Sholudenka vul.              6, Pylypa Orlyka vul.       +38 (044) 581-2828
    +38 (044) 235-2132             +38 (044) 230-4792               +38 (044) 253-7358

        SAN TORI                          Soho                   Swing Restaurant – Bar       Tampopo Restaurant
  41, Sagaidachnogo vul.          Restaurant Complex              11, Volodymyrska vul.       55, Saksaganskogo vul.
   +38 (044) 462-4994                82, Artema vul.               +38 (044) 279-2865          +38 (044) 284-3026
                                   +38 (044) 484-0351

   TEATRO Restaurant              Terracotta Restaurant               Club-Restaurant              Tike Ukraine
 53, B. Khmelnytskogo vul.        at Premier Palace Hotel                 Terrace             31a, Sagaidachnogo vul.
     +38 (044) 581-7070      5-7/29, Tarasa Shevchenka bulv. /   60 a, b Vozdvyzenska vul.      +38 (044) 417-4062
                                 Pushkinska vul., 8th floor      (at the Andreevsky uzviz)
                                    +38 (044) 244-1235              +38 (044) 531-9933

          Truffle                      Trypillya                       Tsarske Selo                    USSR
 5, Chervonoarmiyska vul.      27km. of new Obuhiv route             42/1, Sichnevogo        42/1, Sichnevogo Povstan-
    +38 (044) 492-1622                v. Pidgirtsi                    Povstannya vul.                 nya vul.
                                  +38 (044) 585-5566                +38 (044) 254-2077          +38 (044) 254-2077

                                                  VANILLA Black
                                               Pre-party Restaurant
                                               2, T. Shevchenka bulv.
                                                +38 (044) 235-4185                                             Chamber In-Brief Issue 21 November-December, 2009       35
  New Members

AXA Ukraine                       Ahtna Government                                      Astrum Investment
                                  Services Corporation                                  Management

                                   Government Services Corporation

                                  President & CEO:
                                  Mr. Christopher R Smith
                                  3680, Industrial Blvd. , #400
Mr. Philippe Wautelet                                                                  CEO:
                                  West Sacramento 95691
Address:                                                                               Mr. Maxim Blank
14, Bratska vul.                                                                       Address:
                                  Phone: +1 (916) 372-2000
Kyiv 04070                                                                             19-21, Bogdana Khmelnytskogo vul.,
                                  Fax:     +1 (916) 372-9401
Ukraine                                                                                3 Floor
Phone: +38 (044) 499-2499                                                              Kyiv 01030
Fax:     +38 (044) 495-2254                                                            Ukraine
E-mail:                                                           Phone: +38 (044) 220-4422
Web-site:                                                          Fax:    +38 (044) 220-1548

B&H CJSC                          GEMINI LLC                                              International Investment Group

CEO:                              Director:                                               President:
Mr. Bohdan Batruch                Mr. Andrey Dyachenko                                    Mr. Andrew Cheren
Address:                          Address:                                                Address:
1, Instytutska vul.               107, Zhylyanska vul., Block 26                          28, Predslavynska vul., #502
Kyiv 01001                        Kyiv 01032                                              Kyiv 03680
Ukraine                           Ukraine                                                 Ukraine
Phone: +38 (044) 490-7067         Phone: +38 (044) 238-2128                               Phone: +38 (044) 223-0132
Fax:      +38 (044) 490-7024      Fax:    +38 (044) 235-1092                              Fax:     +38 (044) 528-7011
E-mail:           E-mail:                                                 E-mail:

                                2009 Chamber Official Service Providers                                                       Chamber In-Brief Issue 21 November-December, 2009      36
  New Members

Kinomania LLC                      Kyiv Post                            LG Electronics Ukraine

Ms. Tatyana Koval
62, Dehtyarivska vul., #6          Project Director:                    Head of Office:
Kyiv 04112                         Mr. Jim Phillipoff                   Mr. Ryu Tae Hun
Ukraine                            Address:                             1, Dniprovsky Uzviz
Phone: +38 (044) 200-0122          120, Saksaganskogo vul.,             Kyiv 01001
Fax:    +38 (044) 200-0122         5 Floor, #16                         Ukraine
E-mail:      Kyiv 01032                           Phone: +38 (044) 201-4350
Web-site:     Ukraine                              Fax:     +38 (044) 201-4373
                                   Phone:         +38 (044) 569-9700    E-mail:
                                   Fax:           +38 (044) 569-9704    Web-site:

McKinsey and Company               Promotions11                            Sandoz Pharmaceutical

Mr. Georges Massoud
2, Mechnykova vul.
Kyiv 01023
Ukraine                            Director:                               Country Head (General Manager):
Phone: +38 (044) 393-1200          Ms. Evelina Peyzak                      Mr. Patrick Machan
Fax:    +38 (044) 393-1201         Address:                                Address:
E-mail:       91, Saksaganskogo vul., #1              24D, Polyova vul.
Web-site:         Kyiv 01032                              Kyiv 03056
                                   Ukraine                                 Ukraine
                                   Phone: +38 (044) 499-1012               Phone: +38 (044) 495-2866
                                   Fax:    +38 (044) 490-7199              Fax:     +38 (044) 495-2943
                                   E-mail:             E-mail:

                                 2009 Chamber Official Service Providers                                       Chamber In-Brief Issue 21 November-December, 2009   37
  New Members

UFO                                UKR-FIN TOUR                          VOLIA
                                   Mr. Yurii Andronov
                                   4/6, Patrisa Lumumby vul.
                                   Kyiv 01042
                                   Ukraine                              President and CEO:
                                   Phone: +38 (044) 201-0407            Mr. Sergey Boyko
                                   Fax:      +38 (044) 201-0158         Address:
                                   E-mail:         27, Raduzhna vul.
Member of the Board:                                                    Kyiv 02218
Mr. Baris Ucok                     Web-site:
Address:                                                                Phone: +38 (044) 207-7092
83A, Melnykova vul., 2 Floor                                            Fax:    +38 (044) 285-7392
Kyiv 04119                                                              E-mail:
Ukraine                                                                 Web-site:
Phone: +38 (044) 502-3281
Fax:     +38 (044) 502-3218

Ward Howell

Head of Ukrainian Office:
Mr. Andrey Kardash
8, Illinska vul.
Kyiv 04070
Phone: +38 (044) 391-3530
Fax:      +38 (044) 391-3531

                                 2009 Chamber Official Service Providers                                        Chamber In-Brief Issue 21 November-December, 2009   38

                                                                                        L O

                                           L                                                             E V
                                                   V E

                  The American Chamber of Commerce in Ukraine would like to thank you for your
                                contribution and involvement in ensuring another
                                                 successful year.

                         Wishing You and Yours Happy Holidays and a Wonderful New Year!

                    The Chamber continuously strives to expand and improve all of the services that the

                                                                                                                                 E V
                 Chamber offers to our Members and looks forward to any comments that you can offer to
                 help us further develop the Chamber in 2010 by providing additional and enhanced value
 E V

                 added services to you and your organization and by staying a “Key to Your Success”. Please

                           feel free to contact the Chamber with any suggestions or observations.
                 The Chamber offices will be closed from December 28th, 2009 and will reopen January
                 11th, 2010 in recognition of the Holiday Season and to provide the Chamber Administrative
                                                Team with a well deserved rest.
                 We look forward to continuing to work closely with our Members to further your business
                          interests in Ukraine in what will undoubtedly be a most interesting 2010.

                                                                                                   V E
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                                                         2009 Chamber Official Service Providers                                                             Chamber In-Brief Issue 21 November-December, 2009             39

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