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Monday, February 18th, 2008
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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 BACK

On 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 CHECK

The 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 OPPORTUNITIES

Ukraine’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 UKRAINE

Ukraine’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 STORE

The 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 INFLATION

Ukraine’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? Subscribe

GLOBAL 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 More

CAN 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 Subscribe

ECO ALTERNATIVES TO FOSSIL DEPENDENCY

Alternative 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 Subscribe

THE FIGHT FOR ENERGY INDEPENDENCE

The 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 SUPPLIES

As 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 Subscribe

CALLS FOR REFORM AS UKRAINE MOURNS WORST EVER MINING DISASTER

In 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? More

TWO 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? Subscribe

ASTARTA: BEYOND IPO

International 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 AIRING

Ever 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 Subscribe

UKRAINE’S HEATING SYSTEM IN NEED OF URGENT REFORM

Last 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? Subscribe

GRINDING 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 More

FEATHERING 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 More

THE 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 Subscribe

THE CASE FOR A NEW APPROACH TO ODESSA PORT PLANT PRIVATISATION

The 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? Subscribe

LADIES-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 Subscribe

STIMULATING 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 More

CASHING IN ON THE CAMPAIGN

As 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 Subscribe

CAN 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 More

KAZMUNAIGAZ 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 Subscribe

UKRAINE’S MEDIA: STILL SHACKLED

Ukraine’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 More

TANKERS 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 More

THE UKRAINIAN RECRUITMENT SECTOR: RISING DEMAND, FALLING SUPPLY

As 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 More

PROFESSORS AND PRETENDERS

In Ukraine, a politician without an impressive-sounding scientific degree or PhD is a rare thing indeed Subscribe

THE COST OF GETTING HITCHED

One 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 More

HOTEL RIVIERA: INDEPENDENT NEWCOMER

Attractively located in Kyiv’s Podil district, Hotel Riviera is counting on business sector custom in a booming economy Subscribe

INTERNATIONAL PIONEER RELISHING COMPETITION

As 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 Subscribe

REGIONAL HOTELS: LIMITED CHOICE

The regional hotel market in Ukraine remains underdeveloped, but a few establishments offer western-level services Subscribe

UKRAINE’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 Subscribe

UKRAINIAN 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 Subscribe

UNCERTAIN FUTURE FOR ODESSA-BRODY PIPELINE

Despite 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 Subscribe

WESTERN 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 More

AUSTRIAN 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 More

INTERVIEW: MYKHAYLO RUDKOVSKIY

The Minister of Transport on Ukraine’s need for airport development and an open skies agreement with the EU More

ANTONOV: 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 Subscribe

DUTY 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 Subscribe

REVIVING 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 Subscribe

SPACE 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 Subscribe

THE 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 Subscribe

UKRAINIAN AIRLINE, SOLID GROWTH

Since its establishment in 1992 Ukraine International Airlines has expanded in leaps and bounds, but the real growth is still ahead Subscribe

AGRICULTURAL 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 Subscribe

UKRAINE 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 Subscribe

Canadian 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 More

Ukraine’s Kyoto opportunity

With Ukraine able to sell carbon credits under the Kyoto protocol, a chance for alternative energy projects to flourish is emerging Subscribe

DONETSK: 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 More

DONETSK’S CHANCE TO SHINE

Donetsk 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 Subscribe

IUD: STRENGTH THROUGH DIVERSIFICATION

With 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 Subscribe

VERTICAL INTEGRATION: SMART MOVE

The Donetsk-based giant System Capital Management has made a huge success of integrating its wide range of industrial assets Subscribe

A 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 Subscribe

REFORM 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 More

Industrial output continues its climb

Continued favourable economic conditions mean that despite slow structural reforms most industrial sectors are still flying high Subscribe

Managers' wages still on the increase

An 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 Subscribe

FISH IMPORTS GO UP AS TASTES CHANGE

International fish exporters see huge potential in Ukraine, but improved storage and processing infrastructure are needed Subscribe

CSR: DOING THE RIGHT THING

As 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 Subscribe

UN GLOBAL INITIATIVE GROWING IN UKRAINE

The UN Global Compact scheme is encouraging more and more Ukrainian companies to embrace CSR Subscribe

CRUDE TRANSIT COMPETITION GROWS

Ukraine’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 TREATMENT

With 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 Subscribe

PLAYING THE NUCLEAR CARD

To 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 Subscribe

UKRAINE’S NEW CONSUMER POWER

From 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 More

THE 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 Subscribe

MINI 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 Subscribe

STEEL STILL POWERING GROWTH

Ukrainian steel producers are focusing on efficiency and gaining access to EU markets to offset world market volatility Subscribe

UKRAINIAN VODKA: A GLOBAL WINNER

Ukraine’s premium vodka brands are conquering global markets as they gain a strong reputation for quality among Western consumers Subscribe

MEGA-MERGER STRENGTHENS IUD

Gazmetal 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 Subscribe

OPPOSITION THWARTS RUSSIA PIPELINE PLAN

Opposition 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
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