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TIME TO DISARM RUSSIA

Last week saw yet another round of Russian-Ukrainian energy debt accusations and cut-off threats, producing the latest flurry of “Gas War” headlines in the international press. Russia’s repeated use of the self-same energy weapon has succeeded in dividing successive Ukrainian governments, with those in power seemingly unable to take the final step away from the Russian embrace and switch to a transparent, market-oriented relationship. Isn’t it time to start paying world prices and disarm Russia’s energy arsenal once and for all? More

UKRAINE INKS NEW ENERGY GRID DEAL

Ukrainian officials secured a financial boost from European financial institutions last week to help finance the improvement and modernisation of the domestic power sector. The four-stage project will involve a EUR 300 million loan and help facilitate better energy distribution throughout the country, allowing Ukraine to get the most out of its domestic power-generating potential More

TEMPTING INVESTORS TO AN ANCIENT ISLE

The Economics Ministry unveiled plans last week for a special economic zone on Snake Island in the Black Sea. The move is part of an on-going dispute between Ukraine and Romania over the demarcation line between the territorial waters of the two countries, with the tiny island playing the role of Ukraine’s ambitious frontier outpost More

REPRESENTING UKRAINE IN WASHINGTON

With a new government in power in Kyiv and the presidential election campaign gaining pace in America, Ukraine’s Ambassador to the US Oleh Shamshur discusses the possible implications for bilateral relations and assesses the potential impact of Ukraine’s WTO and NATO membership bids Subscribe

Industry

DOUBTS OVER TIMING OF SWITCH TO CONTRACT ARMY

President Viktor Yushchenko last week again expressed doubt that the Ukrainian army was on course for the proposed switch to a fully professional force by the end of 2009, stating that the material basis for the change was not yet in place Subscribe

Banking & Finance

NEW GOVERNMENT BOOSTS CONSUMER CONFIDENCE

Last month research company GfK Ukraine and the Kyiv-based International Centre for Policy Studies announced the latest results of their research on the mood of local consumers, with a marked upturn in optimism due to returned political stability More

UKRAINE’S CYPRUS CONNECTION

For many years Cyprus has been the tax haven of choice for Ukrainian businessmen, but last year saw particularly huge sums moving to the Mediterranean island sparking debate over the nature of Ukraine’s relationship with the EU member state Subscribe

UKRAINIAN BANKS AND TAX: TIME TO START PAYING UP

Ukraine’s booming banking sector is attracting the attention of international banking sector leaders looking to gain a foothold in this potentially lucrative emerging market. Tax collectors are also enjoying a windfall as banking sector profits and renewed political will combine to produce record state budget revenues Subscribe

UKRAINE’S EXPRESS DELIVERY SECTOR: IN DIRE NEED OF EXPRESS FIXING

Express operators – DHL, UPS, FedEx and others – pride themselves on guaranteed, fast and reliable, on demand, worldwide, integrated, door-to-door delivery. However, express shipments headed for Ukraine are guaranteed only as far as the country’s borders where they collide with the State Customs Service, which remains mired in Soviet-era bureaucracy and acts as a barrier to the sector’s development Subscribe

THE ART OF (CORPORATE) WAR

In the breathing space between elections, confrontations slowly shift from politics to the business world. Corporate wars are much rarer than politicians’ battles but they tend towards the same methods seen in politics and in recent years that has meant increasing attempts to appeal to public opinion via information wars that lay corporate clashes before the general population, leading to soiled reputations and bitter cycles of accusation and counter-accusation Subscribe

Telecoms & IT

MTS EMERGES AS FRONTRUNNER AHEAD OF UKRTELECOM AUCTION

Russia’s largest mobile operator, Mobile TeleSystems (MTS) currently heads the list of potential buyers for Ukrtelecom, Ukraine’s dominant fixed-line telecoms company. The Russian giant operator has announced plans to bid on a 67.79% stake of the state-run operator in order to increase expansion beyond its home market. Stiff competition for the telecoms monopoly is however likely as global players jostle for position on the lucrative Ukrainian mobile market Subscribe