US-Ukraine Business Council

UKRAINE BUSINESS NEWS - TEN ARTICLES

1. U.S. UKRAINE BUSINESS COUNCIL (USUBC) ANNUAL MEETING DEC 17TH
USUBC member 100 to be announced, presentation by International Monetary Fund (IMF)
U.S.-Ukraine Business Council (USUBC), Washington, D.C., Monday, Dec 15, 2008

2. ERNST & YOUNG NAMED BEST ACCOUNTING & AUDIT FIRM BY KYIV POST READERS
Kyiv Post, Kyiv, Ukraine, Thursday, December 4, 2008

3. ALTER ENERGY GROUP ENGAGES ANEMONE GREEN CAPITAL
Alter Energy Group AG, Zurich, Switzerland, Wednesday, November 26, 2008

4. DONATE TO HELP AN ELDERLY UKRAINIAN: AMERICAN FRIENDS OF 'FOR SURVIVAL'
Katie Fox, President, American Friends of 'For Survival', Wash, D.C., Mon, Dec 15, 2008

5. UKRAINE: AMERICAN INVESTOR IN KRAMATORSK DECRIES CORRUPTION
Kontext-Media in Russian, Donetsk, Ukraine, Friday, Dec. 5, 2008
U.S.-Ukraine Business Council (USUBC) in English, Wash, D.C., Mon, Dec 15, 2008

7. SHELL TO INCREASE MARKET SHARE OF FILLING STATIONS IN UKRAINE TO 15%
Interfax, Kyiv, Ukraine, Tuesday, November 25, 2008

8. UKRAINE: ENERGOATOM TO ALLOCATE UAH 170 M TO BUILD CENTRAL
NUCLEAR WASTE STORAGE FACILITY IN 2009, SAYS MINISTER PRODAN
Tender to build nuclear feul storage facility was won by Holtec International in late 2005
Interfax Ukraine, Kyiv, Ukraine, Monday, December 1, 2008

9. AES RIVNEENERHO REELECTS STEVEN WALSH AS SUPERVISORY BOARD CHAIRMAN
Ukrainian News Agency, Kyiv, Ukraine, Friday, December 12, 2008

10. KRAFT FOODS UKRAINE LAUNCHES NEW LINE OF CANDIES
Ukrainian News Agency, Kyiv, Ukraine, Monday, October 13, 2008
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1. U.S. UKRAINE BUSINESS COUNCIL (USUBC) ANNUAL MEETING DEC 17TH
100th USUBC member to be announced, presentation by IMF

U.S.-Ukraine Business Council (USUBC), Washington, D.C., Monday, Dec 15, 2008

WASHINGTON, D.C. - The annual meeting of the members of the U.S.-Ukraine Business Council (USUBC) will be held in Washington, D.C. on Wednesday, December 17th, 2008 from 10:00 a.m. to 12:00 p.m. followed by the USUBC annual meeting luncheon and a presentation on the current financial, business and political situation in Ukraine.

SPECIAL IMF PRESENTATION

Yuriy Yakusha, Alternative Executive Director, International Monetary Fund (IMF) and Ceyla Pazarbasiouglu, the new IMF mission Chief on Ukraine, both from Washington, will make a presentation on the details and implementation of the critical $16.4 billion IMF financial support package for Ukraine. Yuriy Yakusha and Ceyla Pazarbasiouglu have both been in Ukraine very recently working on the IMF-Ukraine agreement and program.

The IMF presentation will be followed by comments from Anders Aslund, Senior Fellow Peterson Institute for International Economics, Washington, D.C.,
about the financial, economic and business situation in Ukraine. Anders has served for several years as a senior advisor to the USUBC. Ukraine Ambassador to the United States, Oleh Shamshur, has also been invited to bring remarks.

100TH USUBC MEMBER TO BE ANNOUNCED

USUBC will be announcing its 100th member at the Annual Meeting Luncheon. In January of 2007 the USUBC board of directors implemented a two-year membership development program. USUBC has grown from 22 members in January of 2007 to now 100 members in December of 2008. USUBC was able to increase its membership by one new member per week in year 2008.

USUBC is now the largest Ukraine related business trade association anywhere in the world outside of Ukraine. This rapid growth has promoted and strengthened U.S.-Ukraine relations and improved the climate for increased cooperation, business, trade and investment in the future between the United States and Ukraine.

2. ERNST & YOUNG NAMED BEST ACCOUNTING & AUDIT FIRM BY KYIV POST READERS

Kyiv Post, Kyiv, Ukraine, Thursday, December 4, 2008

KYIV - Even before investments began flowing into Ukraine en masse, Ernst & Young was here and ready to provide advice on doing business in the often
complicated investment climate and muddy waters.

And regardless of the issues your company may face – be it accounting, auditing, tax compliance or legal matters – the Kyiv offices of Ernst & Young always were and continue to be fully-equipped with a top notch team of experts that provide results.

Internationally recognized as one of the so-called Big Four accounting and auditing firms, few would question Ernst & Young’s expertise and capabilities. In Ukraine, solutions need to be tailored to specific needs for specific clients, be they multinationals operating in the country, or Ukrainian companies seeking to integrate into international capital markets.

Whatever your needs, the Kyiv offices of Ernst & Young, represented by a well-trusted and effective team that includes individuals such as managing
partner Alexei Kredisov, and tax adviser Vladimir Kotenko, can help. And if your needs expand beyond Ukraine’s borders, Ernst & Young’s international
network stretches to all sides of the globe.

So, according to Kyiv Post readers, who do you turn to when you need global expertise and reach? That’s right: look no further than Ernst & Young. And
you won’t have to look far to find them, Ernst & Young’s central office is located on Kyiv’s main drag, Khreshchatyk.

NOTE: Ernst & Young Ukraine is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org. Adlai Goldberg, Kyiv, Director, Business Advisory Services, for Ernst & Young Ukraine serves on the USUBC board of directors.

LINK: http://www.kyivpost.com:80/business/bus_focus/31594.

3. ALTER ENERGY GROUP ENGAGES ANEMONE GREEN CAPITAL

Alter Energy Group AG, Zurich, Switzerland, Wednesday, November 26, 2008

ZURICH, SWITZERLAND - ALTER ENERGY GROUP AG announces it has formally engaged Anemone Green Capital (AGC) to manage the Kyoto Protocol process for its renewable energy projects.

AGC has started the Joint Implementation carbon credit process for the Smela co-generation / biomass production facility and the Kachanovka co-generation facility on behalf of AEG and its majority owned subsidiary Jugenergopromtrans (JEP).

Edward J. Klaeger IV, CEO of AEG states "The engagement of Anemone provides AEG the long term partner we need in Ukraine. The business ethics and track record of success of AGC combined with its resources make AGC a market leader in renewable energy in Ukraine. AGC has already opened significant new opportunities for AEG and we look forward to a long and successful relationship."

Hubert Wang Tose, Founder and Executive Director of AGC states "We are very excited about working with the AEG team in Ukraine. AEG brings the type of professionalism and expertise to the table that my company can build a long term relationship around, in the energy and carbon sectors. In the coming years we expect the synergisms to generate very exciting results."

About AEG: AEG is a Zurich based publicly traded company with operations in Ukraine. AEG is active in acquiring and making investments in Ukraine renewable energy generation companies and facilities and other energy infrastructure initiatives in Ukraine.

About AGC: AGC is a Hong Kong based environmental finance company specializing in the purchase of carbon credits under either the Kyoto Protocol or voluntary compliance schemes (www.anemonecap.com).

AGC is a joint venture partner with one of the largest oil and gas distributors in the world that currently holds more than 130 M tons of carbon credits in its portfolio. AGC has successfully completed 14 bundled small hydro projects in China and is a market leader for alternative energy project development in Ukraine.

SOURCE: ALTER ENERGY GROUP AG, Edward Klaeger +41 44 500 54 11 info@alterenergygroup.com. For more information please visit: www.alterenergygroup.com

LINK: http://www.forbes.com/businesswire/feeds/businesswire/2008/11/26/businesswire117085542.html

NOTE: Anemone Green Capital Limited is a member of the U.S.-Ukraine Business Council (USUBC), www.usubc.org. Jon McKee Queen is the Executive Director, www.anemonecap.com, and serves on the USUBC board of directors.

4. DONATE TO HELP AN ELDERLY UKRAINIAN: AMERICAN FRIENDS OF 'FOR SURVIVAL'

Katie Fox, President, American Friends of 'For Survival', Wash, D.C., Mon, Dec 15, 2008

WASHINGTON, D.C, - Dear Friends and Colleagues, I’m writing as I do once a year to ask you to consider a year-end gift to help an elderly Ukrainian. As many of you know, I run “American Friends of 'For Survival,' ” www.forsurvival.org, a small charity that helps poor elderly in Kyiv. We provide $20-35/month to supplement Ukrainians’ small pensions.

Because this charity is run entirely by volunteers, there are no administrative costs. When you contribute to "For Survival," every cent of your tax deductible gift goes to a pensioner.

This has been a particularly difficult year. Inflation in Kyiv is estimated at 25%-28% in 2008, and the elderly living on fixed incomes have been hit hard. The elderly our charity helps have pensions equal to $81-108 per month. By comparison, the cost of basic survival for a pensioner is now at least $215 per month.

This includes more than $100 for food alone, and minimal amounts for housing and utilities, clothing, and medical care. Your gift, of even a $20 monthly supplement to a pensioner, is critical to closing the gap between pensions and expenses, making possible the purchase of potentially lifesaving medicine, food or fuel.

Please consider a year end gift to “American Friends of 'For Survival.'” Just $240 will help a pensioner for a full year, but any amount is deeply appreciated.

Donating is easy! All it takes is three clicks at our website, www.forsurvival.org. I am always happy to answer any questions. All gifts are tax deductible.

Thank you,

Katie Fox (Washington, D.C.)
(E-mail: info@forsurvial.org)

FOOTNOTE: The U.S.-Ukraine Business Council (USUBC) and several USUBC members have known Katie Fox and about her work with "American Friends of 'For Survival'" for sometime. USUBC and several members have made donations. This is the time of the year for giving and we know there are many worthy organizations. USUBC urges you to donate to the organizations of your choice, especially this year, and also to take a look at the important "American Friends of For Survival" program and consider a year end gift.

5. UKRAINE: AMERICAN INVESTOR IN KRAMATORSK DECRIES CORRUPTION

Kontext-Media in Russian, Donetsk, Ukraine, Friday, Dec. 5, 2008
U.S.-Ukraine Business Council in English, Wash, D.C., Monday, Dec 15, 2008

DONETSK, Ukraine - ContourGlobal President Joseph Brandt, [New York, NY] claims his business in Kramatorsk came under pressure from the prosecutor’s office. He said this, speaking in a press conference on December 5 in Donetsk.

It should be noted that thanks to ContourGlobal's investment and management, a thermal power plant in Kramatorsk, Donetsk oblast, has switched from natural gas to coal when the last boiler modernized by the US-based ContourGlobal company was commissioned on December 5, completing the first stage of the project.

In the project’s second stage the city’s heat supply system of pipes is to be modernized by 2013 and a new thermal power plant using state-of-the-art technology and meeting all environmental safety standards built.

“Several months ago, we felt pressure from the prosecutor’s office, something which surprised us a lot. Definitely, they tried to coerce us. The pressure emanated from lower-rank officials who resorted to absolutely improper actions,” Joseph Brandt said.

Simultaneously, he noted that he was fully aware where he was investing, that it was Ukraine with its special business environment, not Utah in the United States. "If there is more illegal pressure in the future, the company will defend itself with absolute commitments,” Joseph Brandt added.

“We are not the company that can be cowed easily with regard to our current and future investments in Ukraine. Still, we would prefer to be involved in our profile business of investing, and building thermal power plants rather than fight against any illegal pressure in courts,” he concluded.

Link to article: http://www.context-ua.com/km/view_new_news.php?new=90751

NOTE: ContourGlobal is a member of the U.S.-Ukraine Business Council (USUBC), www.usubc.org. George Nizharadze, Kyiv, is CEO Ukraine and Senior VP, Operations for Contour Global, www.contourglobal.com, and serves on the USUBC board of directors.

6. U.S. INVESTOR LISTS NEEDED REFORMS TO IMPROVE INVESTMENT CLIMATE IN UKRAINE

Kontext-Media in Russian, Donetsk, Ukraine, Friday, Dec. 5, 2008
U.S.-Ukraine Business Council (USUBC) in English, Wash, D.C., Mon, Dec 15, 2008

DONETSK - Speaking in his press conference in Kramatorsk, ContourGlobal President Joseph Brandt [New York, NY] shared his opinion on what should be done in Ukraine to improve its investment climate.

Joseph Brandt believes that in the efforts to improve the investment climate priority should be given to passing predictable laws which will defend investors’ rights and provide tax breaks for long-term investments.

As regards the fuel and energy sector, Mr. Brandt believes that proper quotas should be given to foreign businesses investing in modernization, development of new technologies and construction of new power plants. New laws on ownership, on corporations and the green tariff must be passed by legislators.

As stressed by the U.S. businessman, despite the ongoing crisis Ukraine must continue to attract investment, especially in the development of its infrastructure.

“It is easier now to attract an investment to build a new thermal power plant in Ukraine than to do the same in Utah, USA. It is because the developing countries get a larger amount of support from international finance organizations, for example the EBRD. They all offer active and large-scale investment programs,” he added.

Joseph Brandt also said that it is vital to put an end to the ongoing political crisis in Ukraine. “If a crisis hits a country once in five years, we can survive it, but if it happens every day, it distracts businesses from the economy’s real needs.”

Link to article: http://www.context-ua.com/km/view_new_news.php?new=90763

7. SHELL TO INCREASE MARKET SHARE OF FILLING STATIONS IN UKRAINE TO 15%

Interfax, Kyiv, Ukraine, Tuesday, November 25, 2008

KYIV - Shell Retail Ukraine plans during several years to bring the market share of its filling stations in Ukraine under the Shell brand to 15%, according to Shell Ukraine Exploration & Production general manager, Patrick van Daele.

"As for the chain growth, our goal is to reach 15% of the market share during several years. This will be reached through buying existing filling stations and construction of new ones," he said in an interview with the InvestGazeta weekly published on November 17.

Daele said that at present, around 155 filling stations are operating in Ukraine as a part of the joint venture for filling station management, which was set up in August 2007 by Shell International Petroleum Company Ltd. and Russia's OAO Alliance Group. "In 2009, we plan to invest more than this year. And of course, we don't plan to adjust our previous plans in Ukraine," he said.

Earlier Shell Retail Ukraine director general, Christo Ivanchev, said that the company plans to bring the number of its filling stations in Ukraine to 350.
Shell owns a 51% stake in the JV and Alliance 49%.

NOTE: Shell is a member of the U.S.-Ukraine Business Council (USUBC), www.usubc.org. Tracey McMinn, Manager, International Government Relations, Shell Oil Company, Government Affairs, in Washington, D.C., serves on the USUBC board of directors.

8. UKRAINE: ENERGOATOM TO ALLOCATE UAH 170 M TO BUILD CENTRAL
NUCLEAR WASTE STORAGE FACILITY IN 2009, SAYS MINISTER PRODAN
Tender to build nuclear fuel storage facility was won by Holtec International in late 2005

Interfax Ukraine, Kyiv, Ukraine, Monday, December 1, 2008

KYIV - The National Nuclear Generating Company Energoatom plans in 2009 to allocate UAH 170 million to a project to build a central nuclear waste storage facility for three out of four of Ukraine's nuclear plants, Fuel and Energy Minister Yuriy Prodan said during a meeting on the realization of infrastructure projects in the energy and coal sector in Kyiv on Tuesday.

He said that the total cost of the project is estimated at EUR 146.6 million. The minister said that the major stage of construction would start after the adoption of a law on the location, design and construction of the facility by the parliament.

As reported, in order to reduce waste related to the circulation of spent nuclear fuel, in 2003 Energoatom announced an international tender to select a company to build a centralized dry waste storage area for spent nuclear fuel from the South Ukrainian, Rivne and Khmelnytsky nuclear plants (Zaporizhia Nuclear Power Plant already has its own spent nuclear fuel storage facility on site). The tender was won by Holtec International (the United States) in late 2005.

NOTE: Holtec International is a member of the U.S.-Ukraine Business Council (USUBC), www.usubc.org. William A. Woodward, Vice President, Nuclear Projects, Holtec International, Marlton, New Jersey, is a member of the USUBC board of directors.

9. AES RIVNEENERHO REELECTS WALSH AS SUPERVISORY BOARD CHAIRMAN

Ukrainian News Agency, Kyiv, Ukraine, Friday, December 12, 2008

KYIV - The shareholders of the AES Rivneenerho, a power-supplying company based in Rivne, at the meeting on December 11 reelected Steven Walsh as supervisory board chairman. This reads a statement of the company, a text of which Ukrainian News has obtained. Walsh was reelected for a three year term.

The shareholders also reelected Natalia Lysa as supervisory board member for the three year term. She has been holding this post since October 2007.
The shareholders dismissed Yurii Vakhel from the post of supervisory board member and appointed Serhii Medvedev to replace him.

Earlier Medvedev held the post of board chairman in AES Kyivoblenerho power-supplying company. He was appointed for a three year term.

As Ukrainian News earlier reported, AES Rivneenerho closed joint stock company ended 2007 with a net profit of UAH 28.130 million, having increased net revenues by UAH 9% or UAH 41.003 million, compared to 2006 to UAH 496.657 million. In 2001, AES Washington Holdings B.V. (the Netherlands) purchased 75%+1 share in each Kyivoblenerho and Rivneenerho.

Later, the companies were renamed into AES Kyivoblenerho and AES Rivneenerho. AES Corporation runs 113 energy generating facilities and 17 energy distribution companies in 27 countries.

NOTE: AES is a member of the U.S.-Ukraine Business Council (USUBC), www.usubc.org. Steven Walsh, Kyiv, Vice-President AES Corporation, Director of AES in Ukraine, is a member of the USUBC board of directors.

10. KRAFT FOODS UKRAINE LAUNCHES NEW LINE OF CANDIES
Ukrainian News Agency, Kyiv, Ukraine, Monday, October 13, 2008

KYIV - Kraft Foods Ukraine company has launched production of Cote d'Or (new trademark) chocolate candies and Korona coconut-almond candies. The company's press service told this to the Ukrainian News agency. The press service said that on October 13, the company started deliveries of Cote d'Or candies to retail points all over Ukraine.

The assortment of the candies is represented in five formats: 40-gram box sold at the recommended price of UAH 6.8; 150 grams (UAH 24.2); 210 grams
(UAH 36.8); 240 grams (UAH 38.9) and 300 grams (UAH 47.3).

In addition, the company started producing new candies under the Korona trademark, which are the candies made of dark chocolate with coconut filling
and a whole almond inside. The recommended price of these candies is UAH 17 for 161 grams and UAH 27 for 312 grams.

As Ukrainian News earlier reported, Kraft Foods Ukraine owns the Ukraina chocolate factory in Trostianets (Sumy region), while the Vyshhorod
affiliate of Kraft Foods Ukraine in Stari Petrivtsi owns a factory producing potato chips and snacks under the Lux, Estrella, and Cerezos trademarks and
a factory packaging coffee.

In the Ukrainian market Kraft Foods Ukraine sells Carte Noir, Maxwell House, and Jacobs coffee brands. Kraft Foods Ukraine is an affiliate of Kraft Foods.

NOTE: Kraft is a member of the U.S.-Ukraine Business Council (USUBC), www.usubc.org. Dr. George Logush, Kyiv, is Managing Director, Ukraine and Moldova for Kraft. Kenneth J. Roberts, Director, International Business Relations, Washington, D.C. , is a member of the USUBC board of directors.