News Analysis
Welcome!
Welcome to the first issue of Ukraine Business Insight. Our aim is simple – to provide factual,
and - so far as possible - objective information, in English, along with original informed comment and insight that will facilitate the development of trade and investment both within Ukraine, and between Ukraine and the international community. Our rationale behind launching is
Svitlana Barnes
that despite the difficult times that have been experienced by the country since the global economic downturn, the
fundamentals are excellent, and the long-term future assured, even though there are still many hurdles to be overcome along the way. Straightforward, politically independent opinion, discussion of business,
promotion of best international practice, alert to the political realities of the country while remaining focussed on promoting and facilitating business whichever way the prevailing winds of change may blow – that’s what we aim to deliver. When Churchill described democracy as “the worst form of
government, except all the others”, a key factor was the acceptance of change without military force – even if ‘influence’ – political and financial power were still present. Our decision to launch UBI was made before this year’s presidential elections, with the intention of proceeding regardless of the outcome. Judging by the response of international ratings agencies – who value stability above all when looking at governments – conditions for an upturn as early as this year do now seem to auger well despite the set-back of fighting in parliament. Among the aforementioned hurdles, regulatory reform is high on the
agenda, along with reconciling the conflicting interests of big business and the country as a whole. The history of the players, the patronage involved, and the huge sums at stake, will require considerable tact, finesse, patience and compromise – especially when it comes to regularising the country’s energy supply, distribution and pricing policies. These compromises are unlikely to find favour with ideological purists – vested interests will not give up positions of power unless they gain elsewhere, yet this may be the way ahead under applied real-politik, even if it truly satisfies no-one. In this issue we look at some of the renewable energy options
for Ukraine – but while these do exist, and would appear an obvious requirement for a country that is not self-sufficient in energy – they must compete with low cost gas. We also review the local construction and real estate market – where
high value speculative residential ventures are largely put on hold, but basic infrastructure investment continues, with a boost to roads, hotels and stadia from preparations for the 2012 European Soccer Championship. A big thank you to all our advertisers, contributors, partners and
supporters in Ukraine and internationally for making this launch possible. Enjoy the magazine – and do write and let us know what you think and what you would like to see in future issues. UBi
Svitlana Barnes Joint Publisher
4 UkraineBusiness insight June 2010
February 2010. Viktor Yanukovych, the villain of the Orange Revolution, strode to the podium accompanied by a roar of approbation. With his prizefighter’s physique and lounge suit he looked like a background character from Goodfellas. The crowd in YenaKyivo, East Ukraine, saw him as the sylna ruka, the strong hand that would bring order to this country of 48 million whose politicians had been fighting like ferrets in a sack since the Orange Revolution of 2004. They clapped as he promised to make Russian an official language, a promise he would break before the ink on his election posters dried.
His opponent, Yulia
Tymoshenko with her gold peasant braid is presented as a latter day Joan of Arc in designer clothes. A politician to the soles of her Prada boots, the consensus among
President Viktor Yanukovych
the intelligensia was that she should easily have triumphed against her
lumbering
opponent but paid the price for being Prime Minister during a recession. In a reversal of Fairy Tale convention, the ogre triumphed and the princess was turfed out of the Palace. However all is not what it seems for Yulia Tymoshenko has a ruthless streak while Viktor Yanukovych is known for spontaneous acts of generosity, such as stuffing a wad of dollars furtively into the pocket of a hard up journalist.
The Ukrainian election
was held in two stages: an initial round on January 17th in which 18 candidates took part and a final round between the two candidates with the most votes on February 7th. Yanukovych
Election 2010
By Steve Komarnyckyj
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