Saturday, February 26, 2011

Doing Business in Ukraine

The Kyiv Post has another great interview today:

"In September, the State Customs Administration accused the plant of being a coal smuggler, as it claimed that ArcelorMittal failed to pay Hr 200 million ($25 million) worth of customs duties on its imported coal, arresting nearly 67,000 tons of coal in question at ports. This case was dropped last December, only to give way to headaches.

Recently, tax authorities accused ArcelorMittal’s plant in Ukraine of more than $50 million in tax violations. But Russian-native Rinat Starkov, appointed ArcelorMittal’s generaldDirector in Ukraine, says his biggest headache is the state tax administration’s inability to refund value added tax on time and in full.

Government debts to the plant as of Jan. 1, he said, totaled Hr 2.3 billion, the biggest amount owed to any business in Ukraine. Starkov is also not happy that ArcelorMittal has had to make more than Hr 1 billion in advance tax payments to help Ukraine cover a budget shortfall. In addition, dealing with inspections from various controlling bodies, which the company faces on a daily basis, has become a daily routine."

And a rather embarrassing comparison with Russia:

"Things like that are impossible in Russia, and in the West, where I worked for the last four years. It’s really difficult for [ArcelorMittal’s management in London] to understand what is really going on here. Russia had similar problems, but that was 10 years ago."

Monday, February 21, 2011

Surrogate Parents II

Wasnt Elton John unable to adopt a Ukrainian orphan? This story of a Belgian gay couple seems to suggest some are able to do it, but how they did it seems rather typical for Ukraine.

Saturday, February 19, 2011

Money and Football

If a major oligarch puts his full weight behind a football club, this is what you get:

"The International Federation of Football History and Statistics has named FC Shakhtar Donetsk the world's most improved team of the 1st decade of the 21st century."

If at some point this oligarch will spend as much on a Ukrainian educational institution as he spent on Shakthar, then we would very fast see a similar increase of that Ukrainian educational institution in the international educational rankings.

Wednesday, February 16, 2011

Press Freedom

Ukraine ranks 131st in terms of press freedom, a substantial deterioration since last year, according to the index of the Reporters without Borders. It is kind of hard to believe though that the press would be more free in Zimbabwe...

Women and Business

"The survey also revealed some other trends. Representatives of regulatory authorities inspect business women oftener than men, and women have to get 6% more permits for business activity."

Toppling Leaders

This site has betting odds reflecting the chance a leader of a country gets thrown out - Yanukovich clearly can continue to sleep soundly.

Monday, February 14, 2011

Religion in Ukraine

is growing according to these latest statistics

Making TV in Russia

A very interesting account of a Westerner trying to make TV films in Russia can be found here

Thursday, February 10, 2011

Price Controls and Queues

A few days ago I posted a blog with examples of how price controls seemed to lead to further output declines and ultimately could lead to rationing. On Feb 9, the Ukrainian Prime Minister Azarov said the following in a speech:

"Dear Colleagues.
I want special attention paid to the members of the Government those issues that determine quality of life in our country.
First of all, it is a situation on the food market. I have already said that the dire food world environment, the further the more pressure on the domestic market. The only solution here - increasing domestic production of all that is necessary for food security and price stability. At the same time we have to constantly deal with purely speculative implications on the domestic market.

February 3, 2011 signed a Memorandum of Understanding with the producers of sugar and sunflower oil, which provide stabilization of prices in these market segments of food products. As a result, we have some positive changes.

Yesterday signed a Memorandum of Understanding with the producers of grains of buckwheat, which provides fixed wholesale price for this type of grains.
Generally, this will give the opportunity to compile consumer price of buckwheat in sufficient levels. In fact, most retailers have buckwheat has declined in value.

However, this week we are faced with the absurd situation where supermarkets in the capital began to limit the number of products that can be purchased by one buyer. "


Hopefully, they'll become aware at some point that these two things can be related - and that rather than trying to control the price administratively, it makes more sense to try to stimulate competition.