KIEV, Ukraine -- Ukraine is considering capital controls to prevent short-term investments from fueling volatility in the country’s currency, the hryvnia, Deputy Premier Serhiy Tigipko said in an interview.
I’m certain that it’s necessary to carefully monitor the so-called hot capital which will be entering Ukraine,” Tigipko, 50, said in Washington, where he is taking part in the annual meeting of the International Monetary Fund.
“If we see large volumes of short-term money, then it will be necessary simply to restrict such volumes. It’s not so difficult to do.”
Countries from Brazil to South Korea are struggling to prevent speculators from affecting their currencies as policy makers warn of a “currency war” to boost exports through weaker exchange rates.
Brazil on Oct. 4 doubled the tax on foreigners’ purchases of fixed-income assets to 4 percent to stamp out a rally that pushed the real to a two-year high this week.
Central bankers in Colombia and Costa Rica last month initiated programs to buy dollars to curb currency gains.
“We can make a legislative decision to limit or impose certain regulations on withdrawing funds from Ukraine if they were inside the country for less than a year,” Tigipko said. “Many countries are doing it, and I think we’ll be able quickly to introduce such a law.”
The National Bank of Ukraine has been buying and selling foreign currency in a bid to stabilize the hryvnia after the global financial crisis triggered the country’s worst recession since 1994.
The hryvnia fell 45 percent against the dollar in the 12 months through August 2009, making it the worst performer among more than 170 currencies tracked by Bloomberg.
The Ukrainian currency has fallen 0.7 percent against the dollar since Sept. 1, after strengthening for the previous eight months. It was little changed yesterday at 7.945 per dollar.
The central bank sold $686.9 million on the interbank market last month to arrest the hryvnia’s decline, the bank reported Oct. 6.
“If we see a risk for the country, we’ll make our decision in order to protect our currency,” Tigipko said. “If this is short-term speculative capital, why shouldn’t we protect ourselves from it?”
The IMF, which approved a $15.2 billion loan for Ukraine in July, its second for the former Soviet republic since 2008, isn’t pressuring the country to accept greater exchange-rate flexibility, Tigipko said.
Ukraine expects to receive the 7.8 billion hryvnia second tranche of the IMF loan and 2.8 billion hryvnia from other international lenders in the fourth quarter, the Finance Ministry said Oct. 6.
Tigipko said he saw no need to weaken the hryvnia to help Ukraine’s export-dependent economy.
“It’s now possible to think about currency appreciation,” he said. “Our exporters already received good advantages as it is.”
Ukraine’s economy, which grew 5.5 percent in the first half of the year, may expand between 4 percent and 4.5 percent this year, exceeding the government’s official forecast of 3.7 percent, Tigipko said.
A slower pace of global recovery will restrain Ukraine’s expansion, he said.
Inflation may be between 12 percent and 13 percent, matching the government’s previous estimates, according to Tigipko.
The government is discussing imposing quotas on grain exports after crop losses sustained during record summer heat pushed food prices higher, he said.
“It would be appropriate to create a more or less stable reserve and restrict exports somewhat,” Tigipko said. “Even if there are restrictions on exports, they will be absolutely transparent actions by the government, and they will be applied only in the short term.”
Saturday, 9 October 2010
"One For All, All For One": Ukraine Proposes A New Motto For The United Europe
KIEV, Ukraine -- The Ukrainian President Viktor Yanukovych has completed his first official visit to France today. Having met with the President Nicolas Sarkozy, Prime Minister Francois Fillion and the head of the National Assembly Bernard Accoyer, the Ukrainian leader has reassured that EU integration remains his country's key strategic goal.
One for all, all for one", according to the Ukrainian President, should become not only a principle within the European Union, but also one for the whole European continent.
The Ukrainian Head of State made this statement in the meeting with the French political and research circles today at the French Institute of International Relations.
The main outcome of the visit of the Ukrainian President is France's strategic support for Ukraine's closer integration into the European Union.
The parties have signed the Road Map for the development of bilateral relations, which provides for numerous initiatives of closer cooperation.
At the same time, according to the French President Nicolas Sarkozy, Ukraine's EU integration is not to contradict closer relations with Russia.
Moreover, the cooperation within the triangle "Russia-Ukraine-EU" is viable not only in the energy supply related issues, but also on the scale of Common Economic Space between Europe and Russia - the idea which Nicolas Sarkozy first put forward at the 63rd UN Assembly in September of 2008.
On the business side, the Ukrainian leader has also given the answer to the main concern of the European business community about Ukrainian Kryvorizhstal steel giant, owned by the Arcelor-Mittal.
Speaking on this case the Ukrainian President has pledged that there will be no re-privatisation, so the ownership rights of the biggest foreign investor in the Ukrainian economy will not be breached.
The Ukrainian President is predicting the stand-off with the State Property Fund will be resolved in the nearest future by means of negotiations with the Ukrainian Government.
One for all, all for one", according to the Ukrainian President, should become not only a principle within the European Union, but also one for the whole European continent.
The Ukrainian Head of State made this statement in the meeting with the French political and research circles today at the French Institute of International Relations.
The main outcome of the visit of the Ukrainian President is France's strategic support for Ukraine's closer integration into the European Union.
The parties have signed the Road Map for the development of bilateral relations, which provides for numerous initiatives of closer cooperation.
At the same time, according to the French President Nicolas Sarkozy, Ukraine's EU integration is not to contradict closer relations with Russia.
Moreover, the cooperation within the triangle "Russia-Ukraine-EU" is viable not only in the energy supply related issues, but also on the scale of Common Economic Space between Europe and Russia - the idea which Nicolas Sarkozy first put forward at the 63rd UN Assembly in September of 2008.
On the business side, the Ukrainian leader has also given the answer to the main concern of the European business community about Ukrainian Kryvorizhstal steel giant, owned by the Arcelor-Mittal.
Speaking on this case the Ukrainian President has pledged that there will be no re-privatisation, so the ownership rights of the biggest foreign investor in the Ukrainian economy will not be breached.
The Ukrainian President is predicting the stand-off with the State Property Fund will be resolved in the nearest future by means of negotiations with the Ukrainian Government.
She's Lost The Look: Ukraine Orders 'Anti-Tymoshenko' Dress
KIEV, Ukraine -- Ukraine's pro-Kremlin government has ordered a strict new dress code for its employees, in an apparent bid to distance itself from the glamorous-dressing former prime minister Yulia Tymoshenko.
The order, published on the government website and which applies both to visitors and employees, advises a "business-like" look and even gives hints on the thickness of tights, the length of trousers and make-up.
"The business suit of an official can help them not only carry out their professional duties but cultivate good contacts," advises the directive.
The text, several pages long, contains detailed style guidelines separately for men and women. For example, men should have at least three suits and a fresh shirt every day.
"Female officials must look feminine, stylish, elegant and have her individual charm," it advises.
But "plunging cleavage" is not recommended for women and neither are "skirts that are too tight or too short skirts or skirts with slits". Also now taboo are "transparent dresses or blouses through which one can see underwear."
"Do not wear dress that outlines the figure," it points out.
It's all a far cry from the premiership of Tymoshenko, which saw her dress in eye-popping all black or all white costumes that were never the same from one day to the next, complete with her trademark golden hair braid.
Tymoshenko is now in opposition after her defeat to Viktor Yanukovych in presidential elections earlier this year.
Her successor as prime minister Mykola Azarov, a technocratic number-cruncher, has rarely been seen in anything other than the most staid of business suits.
Tymoshenko ridiculed the dress code. "Without doubt, neither Queen of England of (Libyan leader) Colonel Kadhafi would make it into the government building."
Even the president's deputy chief of staff Ganna German seemed discomforted by the move. "I would look at it with irony," she told the Interfax-Ukraine news agency. "It looks a bit archaic, to be honest."
"Good-bye Louis Vuitton," said the popular newspaper Fakti with a hint of nostalgia. For the Gazeta po-Kievski, the innovation is aimed at "exorcising" the spirit of Tymoshenko.
The government has gone to even comic lengths to distance itself from the Tymoshenko administration with Azarov even calling in a priest to exorcise her spirit from his office.
The order, published on the government website and which applies both to visitors and employees, advises a "business-like" look and even gives hints on the thickness of tights, the length of trousers and make-up.
"The business suit of an official can help them not only carry out their professional duties but cultivate good contacts," advises the directive.
The text, several pages long, contains detailed style guidelines separately for men and women. For example, men should have at least three suits and a fresh shirt every day.
"Female officials must look feminine, stylish, elegant and have her individual charm," it advises.
But "plunging cleavage" is not recommended for women and neither are "skirts that are too tight or too short skirts or skirts with slits". Also now taboo are "transparent dresses or blouses through which one can see underwear."
"Do not wear dress that outlines the figure," it points out.
It's all a far cry from the premiership of Tymoshenko, which saw her dress in eye-popping all black or all white costumes that were never the same from one day to the next, complete with her trademark golden hair braid.
Tymoshenko is now in opposition after her defeat to Viktor Yanukovych in presidential elections earlier this year.
Her successor as prime minister Mykola Azarov, a technocratic number-cruncher, has rarely been seen in anything other than the most staid of business suits.
Tymoshenko ridiculed the dress code. "Without doubt, neither Queen of England of (Libyan leader) Colonel Kadhafi would make it into the government building."
Even the president's deputy chief of staff Ganna German seemed discomforted by the move. "I would look at it with irony," she told the Interfax-Ukraine news agency. "It looks a bit archaic, to be honest."
"Good-bye Louis Vuitton," said the popular newspaper Fakti with a hint of nostalgia. For the Gazeta po-Kievski, the innovation is aimed at "exorcising" the spirit of Tymoshenko.
The government has gone to even comic lengths to distance itself from the Tymoshenko administration with Azarov even calling in a priest to exorcise her spirit from his office.
Saturday, 2 October 2010
Buick Lacrosse May Be Produced In Ukraine
KIEV, Ukraine — UkrAVTO, Ukraine's largest automobile manufacturer, is considering setting up assembly of the Buick Lacrosse. The proposal was made by UkrAVTO's China partners. The Lacrosse is currently being produced in China by SAIC, a partner of General Motors.
The Lacrosse could be produced at UkrAVTO's Illichivsk plant in the Odessa region. A preliminary agreement between UkrAVTO and the Chinese side has already been reached and is expected to be signed in coming days.
Permission is still needed from General Motors, which could potentially veto the plan amid fears that the Lacrosse could be positioned as a competitor to the Chevrolet brand.
Representatives of GM were not available for comment.
According to sources in UkrAVTO, the car will be equipped with a 2.4-liter engine and priced at the equivalent of $40,000.
Local experts believe that Buick may face difficulties in Ukraine since demand for U.S. cars in this country is rather low. UkrAVTO has already scaled down several programs involving U.S. products from Cadillac, Chrysler, Dodge and Jeep in Ukraine.
According to Ukrainian auto magazine A95, these brands have not been imported to Ukraine since early 2009.
The magazine also said that SAIC may be interested in a full transfer of production of the Buick Lacrosse to Ukraine to let it start production on more promising models
The Lacrosse could be produced at UkrAVTO's Illichivsk plant in the Odessa region. A preliminary agreement between UkrAVTO and the Chinese side has already been reached and is expected to be signed in coming days.
Permission is still needed from General Motors, which could potentially veto the plan amid fears that the Lacrosse could be positioned as a competitor to the Chevrolet brand.
Representatives of GM were not available for comment.
According to sources in UkrAVTO, the car will be equipped with a 2.4-liter engine and priced at the equivalent of $40,000.
Local experts believe that Buick may face difficulties in Ukraine since demand for U.S. cars in this country is rather low. UkrAVTO has already scaled down several programs involving U.S. products from Cadillac, Chrysler, Dodge and Jeep in Ukraine.
According to Ukrainian auto magazine A95, these brands have not been imported to Ukraine since early 2009.
The magazine also said that SAIC may be interested in a full transfer of production of the Buick Lacrosse to Ukraine to let it start production on more promising models
US Lawmaker McCain 'Saddened' By Ukraine
WASHINGTON, DC -- US Senator John McCain Friday said he was "saddened and concerned" over the strengthening of presidential powers in Ukraine, saying the move by the constitutional court had reversed years of progress in the country.
The former 2008 Republican presidential candidate said in a statement that he spoke about the situation by telephone with Ukraine's former pro-western prime minister and now opposition leader Yulia Tymoshenko.
"I am saddened and concerned that today's ruling by Ukraine's Constitutional Court could lead to a harmful centralization of power and a weakening of democracy in Ukraine," said McCain.
"Though Ukraine's steps toward democracy over the past six years have been a work in progress, the court's action today has undone much of that progress and betrayed the promise of the Orange Revolution," he added.
McCain said Tymoshenko "told me of the increasing pressures that Ukraine's peaceful political opposition is facing, especially in the run up to local elections this month.
"I encouraged her to continue working for greater democracy in Ukraine and to convey my support to all of her fellow reformers and civil society advocates."
McCain called on the United States' "transatlantic allies" to support democratic rule in Ukraine.
Ukraine's constitutional court Friday strengthened the powers of President Viktor Yanukovych by annulling 2004 amendments that boosted parliament, sparking opposition claims of creeping authoritarianism.
The former 2008 Republican presidential candidate said in a statement that he spoke about the situation by telephone with Ukraine's former pro-western prime minister and now opposition leader Yulia Tymoshenko.
"I am saddened and concerned that today's ruling by Ukraine's Constitutional Court could lead to a harmful centralization of power and a weakening of democracy in Ukraine," said McCain.
"Though Ukraine's steps toward democracy over the past six years have been a work in progress, the court's action today has undone much of that progress and betrayed the promise of the Orange Revolution," he added.
McCain said Tymoshenko "told me of the increasing pressures that Ukraine's peaceful political opposition is facing, especially in the run up to local elections this month.
"I encouraged her to continue working for greater democracy in Ukraine and to convey my support to all of her fellow reformers and civil society advocates."
McCain called on the United States' "transatlantic allies" to support democratic rule in Ukraine.
Ukraine's constitutional court Friday strengthened the powers of President Viktor Yanukovych by annulling 2004 amendments that boosted parliament, sparking opposition claims of creeping authoritarianism.
Hackers Siphoned $70 Million
WASHINGTON, DC -- An international computer-crime ring that was broken up this week siphoned about $70 million in a hacking operation targeting bank accounts of small businesses, municipalities and churches, the Federal Bureau of Investigation said Friday.
FBI officials provided new details of a broad probe that included the arrests earlier in the week of people allegedly involved in a network of "mules," those recruited to move stolen funds via bank accounts opened with fake names.
Authorities in the U.S., U.K., the Netherlands and Ukraine have detained or charged more than 100 people. According to the FBI, the organization running the hacking ring included computer-code writers in Ukraine, and the mule-network operators spread out in the U.S., U.K. and Ukraine.
Victims were mostly in the U.S., though some bank accounts were also targeted in the U.K., the Netherlands, and Mexico.
Thieves using iterations of the Zeus computer program managed to steal hundreds of thousands of dollars at a time—the result of focusing on business accounts instead of individual consumers, the FBI said. Investigators said the transactions attempted could have led to losses of up to $220 million, but many weren't completed.
Authorities had earlier cited losses of at least $3 million, a figure that included only a subset of the larger probe described Friday by the FBI.
Since emerging in 2007, the Zeus software, or "malware," has become the weapon of choice for most cyber bank robbers, experts say. The software has been updated multiple times, becoming more sophisticated, and it is sold on the black market to criminals.
Russell Brown, an FBI special agent in the bureau's cyber division, said the ring focused on accounts owned by municipalities and churches in addition to smaller corporate accounts.
The thieves realized "there was more money if you compromise a small-medium business," Mr. Brown said. "They were particularly focused on small and medium businesses because of the technological limitations" often found in security systems at smaller companies, he said.
Gordon Snow, FBI assistant director and chief of the cyber division, said the probe began in May 2009, when FBI agents in Omaha, Neb., began investigating 46 suspicious bank payment transactions, and it grew to a probe of thefts from about 400 victims.
The "technical sophistication of their operation made it difficult to investigate and disrupt," he said.
Even as investigators shut down one major operation using the Zeus malware, they acknowledged that new iterations of it were wreaking havoc in the business world.
Don Jackson is director of threat intelligence at information-security firm SecureWorks, and has provided information on Zeus operations to federal law enforcement. He said the Zeus malware's staying power could largely be attributed to its business model.
Its Russian author, known in the underground by his online handle A-Z, has developed a corporate operation complete with licensing agreements and tech support that have made it easy to use for aspiring cyber bank robbers.
Mr. Jackson said that with the arrests this week, international law enforcement put a major dent in the Zeus operations around the world.
FBI officials provided new details of a broad probe that included the arrests earlier in the week of people allegedly involved in a network of "mules," those recruited to move stolen funds via bank accounts opened with fake names.
Authorities in the U.S., U.K., the Netherlands and Ukraine have detained or charged more than 100 people. According to the FBI, the organization running the hacking ring included computer-code writers in Ukraine, and the mule-network operators spread out in the U.S., U.K. and Ukraine.
Victims were mostly in the U.S., though some bank accounts were also targeted in the U.K., the Netherlands, and Mexico.
Thieves using iterations of the Zeus computer program managed to steal hundreds of thousands of dollars at a time—the result of focusing on business accounts instead of individual consumers, the FBI said. Investigators said the transactions attempted could have led to losses of up to $220 million, but many weren't completed.
Authorities had earlier cited losses of at least $3 million, a figure that included only a subset of the larger probe described Friday by the FBI.
Since emerging in 2007, the Zeus software, or "malware," has become the weapon of choice for most cyber bank robbers, experts say. The software has been updated multiple times, becoming more sophisticated, and it is sold on the black market to criminals.
Russell Brown, an FBI special agent in the bureau's cyber division, said the ring focused on accounts owned by municipalities and churches in addition to smaller corporate accounts.
The thieves realized "there was more money if you compromise a small-medium business," Mr. Brown said. "They were particularly focused on small and medium businesses because of the technological limitations" often found in security systems at smaller companies, he said.
Gordon Snow, FBI assistant director and chief of the cyber division, said the probe began in May 2009, when FBI agents in Omaha, Neb., began investigating 46 suspicious bank payment transactions, and it grew to a probe of thefts from about 400 victims.
The "technical sophistication of their operation made it difficult to investigate and disrupt," he said.
Even as investigators shut down one major operation using the Zeus malware, they acknowledged that new iterations of it were wreaking havoc in the business world.
Don Jackson is director of threat intelligence at information-security firm SecureWorks, and has provided information on Zeus operations to federal law enforcement. He said the Zeus malware's staying power could largely be attributed to its business model.
Its Russian author, known in the underground by his online handle A-Z, has developed a corporate operation complete with licensing agreements and tech support that have made it easy to use for aspiring cyber bank robbers.
Mr. Jackson said that with the arrests this week, international law enforcement put a major dent in the Zeus operations around the world.
Kiev Becomes Eastern Europe's New Global Celebrity Hotspot
KIEV, Ukraine -- The capital of Ukraine, Kiev, is gaining popularity among Hollywood and world cinema stars by engaging them in world-class entertainment and social events.
In the past two months alone, local tabloids and leisure media featured dazzling reports of Sylvester Stallone, Dolph Lundgren, Pamela Anderson, Jean-Claude Van Damme, Sophie Marceau and Christopher Lambert relishing Kiev's vibrant social life.
The legendary duo of Sylvester Stallone and Dolph Lundgren were the first in the row to hit Kiev’s showbiz scene. Their new action thriller “The Expendables” was presented in Kiev on August 7.
Notably, in addition to Kiev, the actors have presented the movie in person only in London and Paris, making the city the only Eastern European capital to host this remarkable event.
Miss Ukraine 2010 was the second big occasion which attracted celebrities to Kyiv. Pamela Anderson, one of the world’s most famous “femmes fatales”, became the main headliner of the Ukrainian Beauty Contest.
The other jewel in contest’s crown was Ornela Mutti, invited to Kiev as the honored guest and the head of the jury of the contest.
The main male headliner of the Miss Ukraine was Jean-Claude Van Damme, who lately has become a frequent visitor to the Ukrainian capital. The famous Hollywood star has visited Kiev at least three times in the past six months.
National tabloids have enthusiastically reported on Van Damme’s amorous affairs in Kiev, publishing pictures of him and his alleged Ukrainian girlfriend in different locations and events in the Ukrainian capital.
Last but not the least in this celebrity parade is the lovely couple of Sophie Marceau & Christopher Lambert. The two actors were invited as the honored guest to the opening of a high-class restaurant in the heart of the Ukrainian capital.
The Ukrainian paparazzi have captured the couple walking and taking photos in the streets of Kiev and cuddling in the restaurants.
Traditionally Kiev has not been a very popular leisure destination among the world’s celebrities. It had been mainly Prague and Budapest which have enjoyed the reputation of Eastern Europe’s social life center.
This status-quo, however, is gradually changing, as the attractions of Ukraine become more and more appealing and difficult to resist.
In the past two months alone, local tabloids and leisure media featured dazzling reports of Sylvester Stallone, Dolph Lundgren, Pamela Anderson, Jean-Claude Van Damme, Sophie Marceau and Christopher Lambert relishing Kiev's vibrant social life.
The legendary duo of Sylvester Stallone and Dolph Lundgren were the first in the row to hit Kiev’s showbiz scene. Their new action thriller “The Expendables” was presented in Kiev on August 7.
Notably, in addition to Kiev, the actors have presented the movie in person only in London and Paris, making the city the only Eastern European capital to host this remarkable event.
Miss Ukraine 2010 was the second big occasion which attracted celebrities to Kyiv. Pamela Anderson, one of the world’s most famous “femmes fatales”, became the main headliner of the Ukrainian Beauty Contest.
The other jewel in contest’s crown was Ornela Mutti, invited to Kiev as the honored guest and the head of the jury of the contest.
The main male headliner of the Miss Ukraine was Jean-Claude Van Damme, who lately has become a frequent visitor to the Ukrainian capital. The famous Hollywood star has visited Kiev at least three times in the past six months.
National tabloids have enthusiastically reported on Van Damme’s amorous affairs in Kiev, publishing pictures of him and his alleged Ukrainian girlfriend in different locations and events in the Ukrainian capital.
Last but not the least in this celebrity parade is the lovely couple of Sophie Marceau & Christopher Lambert. The two actors were invited as the honored guest to the opening of a high-class restaurant in the heart of the Ukrainian capital.
The Ukrainian paparazzi have captured the couple walking and taking photos in the streets of Kiev and cuddling in the restaurants.
Traditionally Kiev has not been a very popular leisure destination among the world’s celebrities. It had been mainly Prague and Budapest which have enjoyed the reputation of Eastern Europe’s social life center.
This status-quo, however, is gradually changing, as the attractions of Ukraine become more and more appealing and difficult to resist.
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