February/March 2012 Ukraine Business Insight
Contents News Analysis Jailing of former Premier Yulia Tymoshenko put a spoke in plans for initialling of an agreement with the EU, while Russia has stepped up inducements for Ukraine to join a Moscow-led customers union. President Yanukovych can no longer play the EU off against Russia, and isolation isn't an option, hence the time for choices has arrived. Euro 2012 countdown underway Infrastructure developments are near completion as Ukraine counts down to co-hosting the UEFA European football championships but the intention is that the event should provide an opportunity for the country to showcase what it has to offer Europe and the world. Interview: Ruslan Demchak, owner, UBG Diversification, the pursuit of excellence and following dreams has worked well for the idealistic entrepreneur and probable new entrant to the Ukraine top 100 rich list, Ruslan Demchak, owner of UBG, as he explains in an exclusive interview with UBI. Land reform Vladimir Konovalchuk advises investors and the Ukrainian government to prepare well for the agricultural land sale, amend flawed policies and take a strategic approach to development to ensure both investors and the country as a whole fully exploit the opportunity. Expat salary survey Lilia Tereshchenko, CEO, at Edelweiss Management Consulting, looks at the changed landscape for western expatriates in Ukraine and provides a snapshot of the current state of the market for UBI readers with an exclusive survey report. Interview: EBRD's Andre Kuusvek Andre Kuusvek, EBRD's Director and Country Manager for Ukraine, confirms EBRD investment in Ukraine is expected to top US $1 bn, and adds that he would still advise foreign investors to invest in Ukraine, as the opportunities exceed the many difficulties still faced in the country. Exporters can gain from EU association Despite political setbacks, moves continue in both the EU and Ukraine to sign a Deep and Comprehensive Free Trade Agreement, but not all sectors will have equal access to the privileges of membership, and for some this agreement will create a new set of problems Online shopping on the increase Internet usage has seen very rapid growth in Ukraine over the past few years, and the internet has become a powerful channel for accessing Ukrainian consumers, just as it is for consumers internationally. Uncertain future for lending Last year certainly wasn’t an easy one for Ukraine's banking system, and this year is not forecast to be much better but banks are expected to increase lending though lending rates will remain high and lending terms are expected to become tougher Also Editorial Comment Business Opportunities Diary p42

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UBI Sept/October 2011
Contents: News Analysis 4 Ukraine celebrates 20 years of freedom and achievement, but there is sober acknowledgement that while many difficulties have been overcome, many more remain - yet despite the vast challenges ahead, the potential opportunities are even greater. EU snubs Ukraine? 9 While Russia has sought to woo Ukraine, some EU members have not reciprocated Ukraine's willingness to compromise in order to reach agreement. Appointing a CEO 11 There are complex legal considerations that have to be taken into account before appointing a foreign CEO in Ukraine, but it can be done. Banking update 12 Mergers and closures are expected at the lower end of the banking sector, while the market overall picks up, with lending and profitability returning. Christmas-tree market potential 16 Urbanisation is a key driver for development of a domestic cultivated Christmas Tree market in Ukraine, with exports to follow in later years, but the time to invest is now. Tax reform proves tough 18 There's widespread agreement about the need for tax reform in Ukraine, but less support for the specific measures taken, hence calls for further modification and improvement come from all quarters. Hi-tech proves successful 22 One of the brighter stars in Ukraine's investment portfolio is its high tech industry which has built on the country's legacy of innovative defence technology and systems and now it is generating investment in new ventures itself. Britain and Ukraine 24 In the first of a series looking at Ukraine's trade and investment partners, UBI talks to the Ukraine Ambassador to the UK (p25) and the UK Ambassador to Ukraine (p31); looks at investment opportunities in the country (p24), Ukrainians networking in London (p30), and the educational opportunities available for Ukrainians via UK institutions (p27) as well as a directory of UK companies active in the country. Common themes are the recognition of common interest, and support for closer EU cooperation. Also Editorial Comment p4 Business Opportunities p41 Diary p42

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April/May UBI 2011
Ukraine Business Insight Magazine Contents April/May 2011 p4 - News Analysis Kyiv-based People First Foundation condemns the failure to stem corruption, and suggests that the authoritarian route taken to pursue stability has detrimentally affected the investment attractiveness of the country. p6 - Travel and Tourism Crimea Crimea seeks to bring back Ukrainian tourists to supplement the ongoing enthusiasm from Russians for the region’s coastal attractions. p8 " Interview: Mykola Tolmachov Mykova Tolmachov, the owner of both TMM development and construction company and Sintal Agriculture company, discusses investment opportunities in Crimea and the future of the region's agriculture market p10 - Agribusiness leads investment Agriculture is one of the most profitable businesses in Ukraine; in 2010 the crop with the highest margin was sugar beet while Pork, cattle and milk production seem to be among the most open segments for new investment, Egor Samusenko, analyst at Concorde Capital explains to UBI's Aleksandra Nekrashchuk. p13 - Interview " Shell Patrick Van Daele, General Manager Shell Ukraine Exploration & Production, Shell Ukraine Country Chair, describes the multinational's activities in Ukraine, and gives some insight into its plans for the future and perspectives on the market. p16 - Energy report Extracts from senior analyst Sergey Bovtenko's major 72 page in-depth management report, Renewable Energy Investment Opportunities, Ukraine 2010 -2020 put the country's energy resources into context. p23 - IT Ukraine Mila Borden outlines major steps being taken to develop the country's physical telecommunications infrastructure, with the government representing the single largest investor in IT; Mark Kychma, a partner at MAKTIG.vc gives a personal analysis of Ukraine's domain registration market; Vitaliy Goncharuk, Managing Partner, The VIactivity LLC, advises where to appoint your Ukraine outsourcer, while Artem Semenov, CEO, Ainstainer Group provides a checklist on how to appoint. p30 - Personal view Nataliya Kzachenko of Vasant Connect suggests that overcoming the disincentives to foreign investment are key to exploiting Ukraine's rich resources to achieve its potential over the next decade. p32 - Tax Code Nikolay Matyukha of BDO LLC outlines some of the key points and implications of the controversial new Tax Code. p34 - Pharmaceuticals Growth has resumed in the Ukrainian pharmaceutical market. Local producers are the main beneficiaries as they have taken the opportunity to increase their market share reports Sergey Bovtenko. p35 - Vodka re-branded Dan Edelstyn's resurrection of a family Vodka enterprise in Ukraine is now the subject of British film-maker Dan's own documentary, but talking to UBI, he also provides a different perspective on entering the Ukraine export market. p38 - Euro 2012 There is just a little over a year left before the Euro-2012 football championship kicks off, hosted in four Polish and four Ukrainian cities. UBI's Aleksandra Nekrashchuk reports on progress to date. Also: p4 Editorial Comment, p41 Business Opportunities

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October/November 2010
News Analysis: Yanukovych six months on P3 The Yanukovych administration is demonstrating a return to order and making an impact, but are Ukrainians convinced everything is going in the right direction? EU negotiations P10 While EU membership is off the cards for now, joining the FTA is underway. Brussels calls the agreement negotiated with Kyiv the most ambitious so far and claims it will give Ukraine a part of the EU's internal market. Agriculture review p13 Yuriy Kosiuk, owner of Myronivsky Hliboproduct, one of the country's biggest agro-holding companies is exclusively interviewed by UBI p13 Agriculture Market report 1 Ukraine's agricultural sector is set to become an increasingly important player on the world food markets, a factor highlighted by Russia's wheat export ban. What are the prospects for growth? P 16 Dr George Logush, Vice President Kraft Foods, explains how Kraft established its operations in the region, providing an example for international companies daunted by the difficulties encountered in the country, with advice on how to overcome them and secure profits. P19 Agriculture market report 2 As food prices increase, the attractiveness of Ukraine’s agricultural sector comes to the fore, but the sector still too risky for the foreign investor? And in practical terms, how should foreign companies enter the market given land is not yet directly for sale? P22 Profile: Akhmetov P 25 The richest Ukrainian, Rinat Akhmetov, possibly the 24th richest man in the world, has a crucial role to play in the country's development. Ukraine's Rich List P27 Who are the richest people in Ukraine? How much do they have and what do they do? This extensive expansion on an early report in Russian provides an overview of Ukraine's elite and throws up some interesting details. Lviv Region p38 Vasyl Horbal, Head of Lviv Regional Administration explains to UBI what the country's westernmost region has to offer investors, and what projects are currently underway or planned. Also: p4 Editorial Comment; p6 Business Comment; p7 Legal Comment, p18 Market comment; p36 News focus; p41 Business Opportunities; p42 Events diary

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UBI April/May 2011 Issue
Welcome to the April/May 2011 issue of Ukraine Business Insight, an English language magazine published in the UK to encourage and inform investors, importers and exporters in and with Ukraine - available in print and online. Read the latest sector reports, analysis behind the news, the deals and the people making them.

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