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ROSUKRENERGO: RIP?Although nothing is ever certain in Ukrainian politics it would seem from the 12 February Moscow summit of the Russian and Ukrainian presidents that the energy intermediary Rosukrenergo is finished. May it rest in peace Subscribe GAS WARS: TYMOSHENKO STRIKES BACKOn 1 February, the National Security and Defence Council adopted a plan to revoke the contracts of gas intermediary companies RosUkrEnergo and UkrGazEnergo. This development marks the beginning of Tymoshenko’s wide-scale plan to overhaul energy relations between Kyiv and Moscow Subscribe RUSSIAN BYPASS PLAN FACES SEVERE REALITY CHECKThe Odessa-Brody pipeline made the news again recently as yet another project to fill it with crude bound for central European refineries was brought forward at Davos. Given new-found political momentum and idling refineries, at first glance it seems like a good idea. But oil is running through the pipeline now and the question remains: “Who could refine it anyway?” Subscribe A CRUMBLING CROSSROADS: TRANSIT FAILURES AND OPPORTUNITIESUkraine’s location as the gateway to Eurasia offers the country a huge strategic advantage as a transit route, but with a road network that is rated among the very worst in the world this opportunity is not being seized Subscribe AIR CARGO SET TO FLY IN UKRAINEUkraine’s transit potential is often undermined by its poor infrastructure and suffocating corruption, but a new air freight project just south of Kyiv may help sidestep these two barriers and earn the country the regional transit leadership its geographical location deserves Subscribe WAREHOUSING MARKET: MORE STORAGE IN STOREThe development of a Kyiv region warehousing market in 2007 was marked by both a quantity and quality increases as the country’s booming economy and strategic location combine to drive the sector forward Subscribe ENERGY DEPENDENCY FUELLING INFLATIONUkraine’s well-documented energy woes are regularly cited as a driving force behind the country’s current rising inflation. An over-reliance on Russian energy supplies is compounded by the unwillingness of politicians to take a leadership role in convincing the social and industrial sectors of their energy profligacy and encourage changes in consumption patterns, which remain largely unchanged since Soviet times Subscribe NAFTOGAZ AT CENTRE OF NEW ENERGY CRISIS Energy sector crises have become something of a Ukrainian New Year tradition in recent years, and 2008 has proved no exception, with news that the country’s largest energy company is in dire straights. Will measures to secure a greater share of the domestic energy supply market prove enough to offset mounting debts? SubscribeGLOBAL FIRM, LOCAL POTENTIAL As one of the world’s top oil and gas companies, Shell is now looking to Ukraine as a new market to which it can offer a wide range of its products and services. However, it was the country’s potential as producer of natural gas and condensate that made the company take its first major step into Ukraine MoreCAN UKRAINE DEPEND ON NUCLEAR FUEL? Nuclear energy is increasingly being seen as a solution to the energy dependency trap which many countries now face. Dr. Olga Kosharna argues that while Ukraine is better placed than most to rely on nuclear fuel, political and bureaucratic obstacles remain SubscribeECO ALTERNATIVES TO FOSSIL DEPENDENCYAlternative and renewable energy options are the ideal solution to Ukraine’s energy blues, but the government needs to offer investors incentives before the sector can perform to its full potential Subscribe THE BENEFITS OF INVESTING IN PEOPLE As international investors rush to enter the booming Ukrainian market, a British initiative is promoting another kind of investment which can bring dividends simply by focusing on a company’s most valuable assets: Its staff SubscribeTHE FIGHT FOR ENERGY INDEPENDENCEThe rise of energy politics could hardly have come at a worse time for Ukraine, with regular deadly explosions at the country’s outdated coal mines coupled a continuing dependence on Russian energy supplies posing a direct threat to Ukraine’s economic growth and democratic development Subscribe THE GLOBAL SCRAMBLE FOR ENERGY SUPPLIESAs the global scramble to secure access to energy supplies intensifies, it is hard not to see that he time has come for Ukraine’s political elites to put partisan sentiment to one side and focus on the need to reform the domestic energy sector. To assure its future as an emerging economy, the country will have to attract and retain the international know-how and investment that the sector so desperately needs Subscribe THE NECESSITY OF STRUCTURAL REFORM Can the new government cope with the scale of the energy issues it will likely face in the coming year? With the Soviet-era domestic heating system in need of a total overhaul and Russian gas prices set to rise by around 30%, there is reason to believe that the fate of the renewed Orange coalition will rest on its handling of the energy issue SubscribeCALLS FOR REFORM AS UKRAINE MOURNS WORST EVER MINING DISASTERIn the early hours of November 18 a methane gas explosion rocked the Zasyadko coal mine in Donetsk, killing at least 89 miners. The death toll signals the worst coal mining disaster in Ukraine’s post-Soviet history and is a stunning blow to one of the country’s most economically vital and politically sensitive industries More BOOMING MAGAZINE MARKET FLOODED WITH NEWS WEEKLIES The press freedoms won in 2004’s Orange Revolution protests, together with the rise of the Ukrainian middle class and a burgeoning domestic advertising industry have combined to provide a huge boost to the weekly news magazine sector, with new titles appearing on an almost monthly basis. Can the market sustain such robust growth? MoreTWO YEARS ON: UKRAINE’S ORANGE PRIVATISATION SHOWPIECE Two years ago last month Ukraine’s Orange coalition government carried out what was billed as the country’s first truly transparent privatisation operation, selling the giant Kryvorizhstal steel producer to Mittal Steel for USD 4.8 billion amid much fanfare and media hype. How has the plant fared since it hit the international headlines? SubscribeASTARTA: BEYOND IPOInternational IPOs are headline grabbers for Ukrainian companies looking to establish themselves internationally, but they are only part of a wider process, as the experience of sugar manufacturer Astarta demonstrates Subscribe DEBATE OVER NATIONAL IDENTITY TO RECEIVE PRIME TIME TV AIRINGEver since independence there has been a heated debate over what it means to be Ukrainian. This politically explosive issue will return to centre stage this week as the Great Ukrainians project debuts on national television More NAFTOGAS CALLS FOR A REVIEW OF DOMESTIC ENERGY PRICING POLICY Leading energy sector figures have accused the government of allowing short-term political expediencies to prevent the development of the country’s energy potential and scare off desperately needed international capital SubscribeUKRAINE’S HEATING SYSTEM IN NEED OF URGENT REFORMLast month’s tragic blast which destroyed part of a Dnipropetrovsk apartment building was a timely reminder of the urgent need to reform Ukraine’s archaic domestic heating system, but the task ahead is likely to be Herculean More REDISCOVERING THE WONDERS OF UKRAINE 2008 has been named the Year of Tourism in Ukraine. With budget funds finally allocated to the domestic travel industry and the number of visitors to the country growing higher by the year, is Ukraine set to belatedly join the global tourism boom? SubscribeGRINDING TO A HALT: TRAFFIC CHAOS IN KYIV While the headlines are dominated by great political events, Kyiv’s citizens are confronted with the far more mundane yet tangible problem of a traffic crisis which appears to get worse with every passing week MoreFEATHERING UKRAINE’S AGRICULTURAL FUTURE The agricultural industry is no longer the domain of Soviet-style collective farm bosses, with savvy young MBA-wielding managers introducing branding concepts and integrated approaches to what was once Ukraine’s most profitable sector
MoreTHE BLACK SEA: A NEW OIL FRONTIER The dominance of energy security on the geopolitical chessboard has significantly weakened Ukraine’s position over the past three years of political turmoil. Efforts to counter this by increasing the country’s energy independence could lead to the development of long untapped oil and gas reserves SubscribeTHE CASE FOR A NEW APPROACH TO ODESSA PORT PLANT PRIVATISATIONThe saga of Odessa Port Plant’s on-off privatisation has become highly politicised, and is threatening to cost the country both in terms of lost revenues and investor confidence Subscribe THE DANGERS OF GAS SHOCK THERAPY Yulia Tymoshenko’s outspoken criticism of Ukraine’s current gas agreement with Russia and commitment to negotiate a new deal are threatening to produce price rises that will hit domestic industry hard. Are there realistic solutions to the energy sector shock therapy she seems to be proposing? SubscribeLADIES-ONLY TV CHANNEL LAUNCHED The latest innovation to reach the Ukrainian media market is a TV channel devoted entirely to ladies. This novel new channel reflects both the growing advertiser interest in Ukraine’s discerning female audiences and is also part of a general trend towards investing into the development of television niche markets SubscribeSTIMULATING GROWTH THROUGH LEASING Leasing has played a crucial role in stimulating investment in productive assets all over the world. UniCredit Leasing CEO Jaroslaw Konczewski predicts a key role for the fast-emerging Ukrainian leasing market MoreCASHING IN ON THE CAMPAIGNAs Ukraine’s political parties assess the relative effectiveness of their campaigns, the real winners are the country’s advertising agencies and TV stations, who have made a fortune carrying election-related advertising over the past two months Subscribe AMBITIOUS SKI RESORT TOPS INVESTMENT CHARTS The Carpathian ski resort of Bukovel has announced record investment levels for 2007, and seems well on the way to realising ambitious expansion plans that will ultimately lead to a bid to host the winter Olympics
SubscribeCAN UKRAINE CAPITALISE ON THE GROWING BIOFUELS MARKET? With fossil fuel prices steadily rising and the world’s dwindling energy supplies increasingly being used as political weapons, the attraction of biofuel options is on the rise and Ukraine has more than most to gain MoreKAZMUNAIGAZ SEES NEW HORIZONS OPEN UP Kazmunaigaz’s strategic takeover of Rompetrol will only be made public once the company’s plans to expand into the Black Sea region become more clear
SubscribeUKRAINE’S MEDIA: STILL SHACKLEDUkraine’s press is still far from achieving real freedom from political and commercial interests, but maybe there is hope in the elections
Subscribe KEEPING HOLD OF A QUALITY WORKFORCE In the Ukrainian job market finding quality staff is only one problem – the other is retention. Alex Yurchenko of Hudson discusses the issues at stake MoreTANKERS REOPEN LUCRATIVE RIVER ROUTE The Ukrainian motor fuels market witnessed a new development during the summer as imported petroleum began sailing up the Dnipro river after an eight-year break
MoreTHE UKRAINIAN RECRUITMENT SECTOR: RISING DEMAND, FALLING SUPPLYAs the Ukrainian economy booms the domestic recruitment industry is flourishing amid ever increasing demand for skilled personnel, but with a limited supply and ambitious employees spending less and less time in any one company before moving on, recruiters are facing a constant struggle to keep pace Subscribe DEGREES OF CORRUPTION: GRAFT IN THE EDUCATION SYSTEM The academic year begins this week and record numbers of students are enrolling at Ukraine’s institutes of higher education, but endemic corruption in the education system is in danger of devaluing academic qualifications MorePROFESSORS AND PRETENDERSIn Ukraine, a politician without an impressive-sounding scientific degree or PhD is a rare thing indeed
Subscribe THE COST OF GETTING HITCHEDOne handy informal indicator of an economy state is the health of its marriage industry. The good news for Ukraine is that more people are getting married each year and spending increasingly small fortunes in the process More KYIV’S NEW FIVE-STAR LANDMARK As the first international-brand five-star hotel in Kyiv, the Hyatt Regency Kyiv-Saint Sophia marks the beginning of a new era for Ukraine’s hotel industry
MoreHOTEL RIVIERA: INDEPENDENT NEWCOMER Attractively located in Kyiv’s Podil district, Hotel Riviera is counting on business sector custom in a booming economy
SubscribeINTERNATIONAL PIONEER RELISHING COMPETITIONAs the first global hotel brand to appear in Kyiv, the SAS Radisson is hoping that the arrival of new hotels will raise the game and increase travellers’ interest in Ukraine
Subscribe PLAYING TECHNOLOGY CATCH-UP CIS countries are facing an ever-growing need to increase their deep-refining and treatment capabilities in order to meet world market demands, but lack of expert personnel is holding back progress SubscribeREGIONAL HOTELS: LIMITED CHOICE The regional hotel market in Ukraine remains underdeveloped, but a few establishments offer western-level services SubscribeUKRAINE’S HOTELS OF THE FUTURE Anyone visiting Ukraine in five years’ time will see a very different hotel scene with many international players, including InterContinental, Hilton and Sofitel all having set up shop in the capital SubscribeUKRAINIAN BRAND, INTERNATIONAL QUALITY The SCM-owned Opera Hotel was Kyiv’s second five-star hotel and has quickly gained a reputation for offering some of the most elegant and intimate lodgings in Ukraine SubscribeUNCERTAIN FUTURE FOR ODESSA-BRODY PIPELINEDespite its troubled history, some experts believe Ukraine’s Odessa-Brody pipeline could be key to diversifying crude oil supplies and reducing energy reliance on Russia
More RETAIL JUST CAN’T GROW FAST ENOUGH Ukraine’s retail sector continues its runaway success as companies jostle for the pick of limited vacant premises SubscribeWESTERN MBA STUDIES GAIN GROUND IN UKRAINE As more and more young Ukrainian business people seek MBAs, the limitations of local courses and lack of places with international institutions are becoming more acute MoreAUSTRIAN AIRLINES: PAN-UKRAINIAN COVERAGE With flights to all major Ukrainian destinations, Austrian Airlines is committed to expanding coverage in what it sees as one of Europe’s last remaining opportunity markets MoreINTERVIEW: MYKHAYLO RUDKOVSKIY The Minister of Transport on Ukraine’s need for airport development and an open skies agreement with the EU MoreANTONOV: BUILDING UKRAINE’S PLANES Since it’s Soviet-era establishment, Antonov has gained a worldwide reputation for producing capable, reliable designs and has kept apace of the times by developing and adopting new technologies SubscribeDUTY FREE: THE ONLY WAY IS UP With Kyiv’s Boryspil Airport close to capacity and developments at other airports still in the pipeline, Irish-owned duty free operator Aer Rianta is poised to take advantage of the coming air travel boom SubscribeREVIVING UKRAINE’S AIRPORTS Although all of Ukraine’s major airports have been slated for expansion and modernisation, progress thus far has been slow and existing facilities often struggle to cope SubscribeSPACE IN THE SKY FOR EVERYONE As Ukraine edges towards an open skies deal with the EU, the local air transport industry is set for a massive boost SubscribeTHE INTERNATIONAL CONNECTION As Ukraine becomes ever more a part of the global economy, international airlines are committed to increasing their involvement in Ukraine as the economic boom sees more Ukrainians travel by air SubscribeUKRAINIAN AIRLINE, SOLID GROWTH Since its establishment in 1992 Ukraine International Airlines has expanded in leaps and bounds, but the real growth is still ahead SubscribeAGRICULTURAL CHALLENGES Ukrainian farmers are looking abroad to replace worn-out equipment, but with costs high, many are looking to the second-hand market in the US SubscribeUKRAINE AND EU AGREE STEEL TRADE QUOTAS With a 30% increase in its export quota to the EU, the Ukrainian steel industry is set for an immediate boost. However only WTO membership will sweep away the remaining barriers to full trade with Western Europe SubscribeCanadian know-how, Ukrainian potential Independent Canadian oil and gas producer Transeuro Energy is developing several gas condensate fields in Ukraine on the wave of the country's growing desire to boost domestic production MoreUkraine’s Kyoto opportunity With Ukraine able to sell carbon credits under the Kyoto protocol, a chance for alternative energy projects to flourish is emerging
SubscribeDONETSK: OPEN FOR BUSINESS The heads of Donetsk’s leading business associations say the city and region are making excellent progress in putting Donetsk on the global business map MoreDONETSK’S CHANCE TO SHINEDonetsk needs to raise its profile internationally via a coherent and strategic approach in order to maximise its massive investment potential Subscribe INTERVIEW: VOLODYMYR LOGVINENKO The Governor of Donetsk Region talks about foreign investment, infrastuctural development and the labour market SubscribeIUD: STRENGTH THROUGH DIVERSIFICATIONWith stakes in several major Ukrainian steel plants, the Industrial Union of Donbass is now investing abroad to enhance its access to global markets Subscribe POWERING DONETSK AND BEYOND Power generation company DTEK is Ukraine’s only major private producer of energy - and it’s now looking to become an international force SubscribeVERTICAL INTEGRATION: SMART MOVE The Donetsk-based giant System Capital Management has made a huge success of integrating its wide range of industrial assets SubscribeA MASSIVE MARKET IN WAITING Ukraine’s hotel industry has many years of restricted development to catch up on before it can offer international choice and standards, but the signs are that the next few years will see massive change SubscribeREFORM ON THE HORIZON AT LAST New government legislation giving oil refiners the tax breaks and machinery import regime they need to modernise their aging facilities in Ukraine is at last materialising MoreIndustrial output continues its climbContinued favourable economic conditions mean that despite slow structural reforms most industrial sectors are still flying high Subscribe Managers' wages still on the increaseAn acute shortage of professional managers is driving up employers’ costs in Ukraine’s growing corporate sector Subscribe UKRAINIAN COAL: FUELLING THE FUTURE Ukraine’s coal industry is growing due to ever-increasing energy demands, but will have to modernise SubscribeFISH IMPORTS GO UP AS TASTES CHANGE International fish exporters see huge potential in Ukraine, but improved storage and processing infrastructure are needed SubscribeCSR: DOING THE RIGHT THINGAs more companies in Ukraine understand and adopt Corporate Social Responsibility policies and activities, the question arises as to what they and the public really perceive CSR to be More ONE FIRM’S CSR STORY Why one of Ukraine’s largest industrial conglomerates has decided to position CSR as a core feature of its business strategy SubscribeUN GLOBAL INITIATIVE GROWING IN UKRAINEThe UN Global Compact scheme is encouraging more and more Ukrainian companies to embrace CSR Subscribe CRUDE TRANSIT COMPETITION GROWSUkraine’s oil and gas transit business is introducing efficiency measures and port fee cuts to boost its competitiveness in an ever-tougher market Subscribe HEALTH SECTOR: NEED FOR TREATMENTWith Ukraine’s public healthcare system creaking under the strain of low funding and lack of state strategy, the private sector is booming but remains accessible to only a few Subscribe PHARMACEUTICALS: ROOM FOR GROWTH Spending on pharmaceuticals in Ukraine remains very low by Western standards, but industry experts are convinced of huge future growth SubscribePLAYING THE NUCLEAR CARDTo cut Ukraine’s dependency on Russian nuclear fuel, the government is aiming to raise local uranium production and co-operate with the US Subscribe THE GREAT RETAIL GAME With the economy growing and consumer credit on the rise, Ukraine’s retail market seems an obvious choice for international players. But of course, it’s not that simple SubscribeUKRAINE’S NEW CONSUMER POWERFrom groceries to cars to eating out, Ukraine’s expanding middle class is showing an ever-increasing Subscribe BRIDGING THE ENERGY GAP Ukraine’s energy sector remains firmly dominated by the state and desperately needs private investment if it is to meet future demand MoreTHE CHEMICALS GIANT Despite its exposure to worldwide gas and fertiliser price fluctuations, Stirol is holding its own as an international player on the global chemical and phramaceutical markets and plans to diversify into bio-ethanol SubscribeMINI MILL, MAXI AMBITIONS As Ukraine's only 100% foreign owned and most sophisticated steel mill, ISTIL Ukraine is expanding and pursuing further upgrade plans with EBRD finance SubscribeSTEEL STILL POWERING GROWTH Ukrainian steel producers are focusing on efficiency and gaining access to EU markets to offset world market volatility SubscribeUKRAINIAN VODKA: A GLOBAL WINNER Ukraine’s premium vodka brands are conquering global markets as they gain a strong reputation for quality among Western consumers SubscribeMEGA-MERGER STRENGTHENS IUDGazmetal and the Industrial Union of Donbass agree strategic tie-up, Usmanov announces intention to list on London Stock Exchange More LOVE ME, LOVE MY NEW CAR With new car sales in Ukraine having jumped 39% in 2006, a new social phenomenon as well as increasing affluence is becoming apparent SubscribeOPPOSITION THWARTS RUSSIA PIPELINE PLANOpposition forces government turnaround on Russian pipeline deal, renews resistance on price increases Subscribe THE GRAIN DISPUTE: AN UNLEARNED LESSON?The recent grain quota crisis proved again that government price intervention generally fails in Ukraine, with producers and distributors hit hard Subscribe UKRAINE’S BOOMING WEAPONS INDUSTRY Care to buy a tank? A few ballistic missiles? A military transport plane or two? Assault ships or radar systems? It's all here in Ukraine, one of the world leaders in the production and sale of advanced weaponry and defence technology Subscribe | |