Welcome to the U.S.-Ukraine Business Council

April 18, 2008

TRANSPORT MINISTER HOPES BIG INVESTORS WILL ENTER TRANSPORT SECTOR OF UKRAINE

Transport and Communications Ministry expects large investors will enter the transport sector of Ukraine and their investments will significantly increase cargo turnover and its transportation volume, as it informed on April 11.

According to this announcement, the privatization of the Black Sea Navigation company and the Ukrainian Danube Navigation company will be carried out by the end of the year.


UKRAINE’S MYRONIVSKY KHLIBOPRODUCT PLANS IPO IN LONDON

MHP S.A., a holding structure for Ukrainian agri-business group Myronivsky Khliboproduct, plans to conduct an IPO on the London Stock Exchange, as company announced on April 14.

Myronivsky Khliboproduct is Ukraine's largest poultry meat producer, commanding a 36% market share. The group also produces grains, sunflower oil, beef, potatoes and other food products.


DENMARK’S TRIGON AGRI PLANS SPO WORTH EUR 200

Denmark's Trigon Agri plans to hold an SPO worth EUR 200 million, a representative of the company said on April 14.

The company plans to boost total arable land under its management to 450,000 hectares by 2010.

Trigon Agri has formed a joint venture with Ramburs Group, one of Ukraine's leading grain trading companies. Trigon Agri's stock is currently traded on the OMX Nordic Exchange's alternative market - First North Stock Exchange.


UKRSIBBANK TO BORROW SOME $1 BN ON INTERNATIONAL MARKET BEFORE END OF 2008

Ukraine's UkrSibbank intends to raise about $1 billion on the international market before the end of 2008, as it announced on April 16.

The amount of funds the bank plans to raise this year - not from the parent company - is more than $1 billion.

UkrSibbank was established in 1990. As of January 1, 2008, its biggest shareholders were BNP Paribas (51%) and the Ukraine Metallurgical Company (39.4983%). According to the National Bank of Ukraine, UkrSibbank was the third biggest bank in Ukraine by assets out of 175 banks in the country in 2007.

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April 17, 2008

Asters Boosts its Legal Team with Two Lateral Partners and Seven Associates

Asters, a leading independent Ukrainian law firm, announces the accession on 14 April 2008 of Irina Nazarova as an equity partner and chair of litigation practice group and Andriy Vishnevsky as an equity partner and co-chair of business law practice group together with seven attorneys in their respective practices.

Mrs. Nazarova and Mr. Vishnevsky and the team of their lawyers have previously worked at the law firm Sergiy Koziakov & Partners.

Irina Nazarova is well-known as one of the most experienced litigators in Ukraine who dealt with a broad range of cases in courts and arbitrations, including international commercial arbitration. She has represented Ukrainian and international companies in the Supreme Court of Ukraine, the High Commercial Court of Ukraine, and the International Commercial Arbitration Court of the Ukrainian Chamber of Commerce. She also has extensive experience in such areas as privatization, corporate law and intellectual property. Mrs. Nazarova has a consistent record of representation of clients in a number of prominent cases in Ukrainian courts, including the dispute over improper privatization of Kryvorizhstal, one of Ukraine’s major steel works, and Nikopol Ferroalloy Works, one of the world’s major ferroalloys plants; representation of the Ukrainian Ministry of Defense in a lawsuit against a Russian media company in the matter of rebutment of the untrue statements; and counseling an owner of Studio 1+1, one of the leading Ukrainian TV channels, in the case regarding title to equity in the company.

Andriy Vishnevsky is recognized as one of the leading business law practitioners in Ukraine. The focus of his practice is in M&A, corporate law, securities, real estate and property, tax law, foreign investment, natural resources, litigation, and private international law. He has extensive experience in advising Ukrainian and international clients on a wide range of transactional matters, including mergers and acquisitions, privatization and business restructuring, securities and real estate transactions. Mr. Vishnevsky’s transactional record includes representing Smart Group in several M&A transactions; advising a Ukrainian client on the EUR 450 million acquisition of a major German steel plant; advising the investors in the USD 500 million development of Globus trade and entertaining centre; representing Henkell & Sohnlein in the acquisition of control in one of the major Ukrainian champagne manufacturing plants; representing LLC Eugene in a Ukrainian court in the case the Government of Ukraine, Football Federation of Ukraine, and the Kyiv City Council v. LLC Eugene regarding demolishing of the LLC Eugene’s real estate with approximate value of USD 300 million.

The accession to Asters of a large group of attorneys, including two partners, is an important event indicating the rapid growth of the firm which has reinforced its position as the leading Ukrainian independent law firm. It also evidences the success of the firm’s strategy on diversifying its practices with introduction of the litigation practice group and widening its business law capabilities in general. Today, with 9 partners, more than 70 lawyers and over 110 employees, Asters remains one of the biggest and most capable of all Ukrainian law firms.

Commenting on the latest arrivals, Asters’ Managing Partner Oleksiy Didkovskiy said: "Irina Nazarova and Andriy Vishnevsky with their expertise and strong professional reputation will be a great addition to our powerful team of professionals. With their arrival Asters strengthened its leading market positions in general corporate practice and established new litigation practice. Now we became a truly full service law firm and this is the great news for our clients."
Commenting on new partnership, Irina Nazarova said: "Asters’ strong reputation in the market and access to its diversified Ukrainian and international client base represent a fantastic opportunity for us to build a successful litigation practice."
Andriy Vishnevsky adds: "Asters is clearly in the ascendancy and it is the right time to join this large and extremely professional team and have a chance to contribute to the firm’s dedication and continuing success."

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April 10, 2008

EBRD MAY LEND $65 M TO UKRSOTSBANK

The European Bank for Reconstruction and Development may provide Kyiv-based Ukrsotsbank with a $65 million long-term loan for financing of long-term residential mortgages of individual sub-borrowers in Ukraine, the EBRD representative said on April 4. The EBRD's board of directors will consider the loan on May 12.

The project will support the development of the Ukrainian mortgage financing sector, foster implementation of best international practices in mortgage lending (implementation of the EBRD Minimum Mortgage Standards) and support standardization of mortgage product, which is pivotal for the successful development of the secondary mortgage market.

The EBRD is the largest financial investor in Ukraine. As of January 2008, the bank assumed obligations to grant investment worth EUR 3.2 billion within over 160 projects. The EBRD invested EUR 647 million in Ukrainian economy in 2007. In 2008, the bank could invest $1 billion in Ukraine.


ARISON BUSINESS GROUP INTERESTED IN CONSTRUCTION PROJECTS IN ODESA

Representatives of Israel's Arison Business Group at a meeting with Odesa Mayor Eduard Hurvits showed interest in construction projects in the city as part of preparations for hosting the European Football Championship in 2012 as reported on April 7. The company is interested in the projects on the construction of a new stadium in the city, the building of the North-South highway and the reconstruction of Odesa International Airport.

Arison Business Group was established in 1991. The activity of the company is concentrated in three spheres: finance, real estate and infrastructure, and ecological investment. The company controls Israel's largest bank, Hapoalim, which in March 2008 acquired 75.8% of the shares of Ukrinbank for $136 million. Currently the total investment of Arison Business Group in the world exceeds $1 billion.


TURKISH GARANTI BANK IN TALKS ON ACQUISITION OF UKRAINE'S PARNTER BANK

Turkiye Garanti Bankasi A.S. (Garanti Bank of Turkey), which partly belongs to U.S. General Electric Corporation, is in talks on the acquisition of Kyiv-based Partner Bank as announced on April 7.

Garanti Bank was founded in 1946 and in 1983 it was acquired by the Dogus group, which operates in the financial, automobile, construction, tourist and media spheres. In 2005, Dogus Group and GE signed an agreement on participation in the capital of Garanti Bank on a parity basis. Garanti Bank's assets by the end of 2006 amounted to $36 billion. Partner Bank Ltd. was founded in 2006 and ranked 98th among 175 Ukrainian banks operating by January 1, 2008, in terms of overall assets, estimated at UAH 607 million.


TKS HOLDING STUDYING ATTRACTION OF $11M CREDIT UNDER MORTGAGE AND PROJECT FINANCING

TKS Holding is considering the possibility of raising an $11 million credit under mortgage and project financing for ten years as informed by the company on April 8.

At present, TKS is considering offers from the following banks: OTP Bank, Index-Bank, Universal Bank and VAB Bank. The raised funds will be allocated to complete the existing and starting new projects on commercial and housing real estate.

TKS Holding was founded in 1998 as a diversified group of companies providing basic goods and services to resorts in Truskavets (Lviv Region). It has been involved in the real-estate business since 2003. At present, the holding operates in Truskavets, Lviv, Drohobych, Boryslav (Lviv region) and Novovolynsk (Volyn region).

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April 4, 2008

PATERSON PUTS 3 STORES UP FOR SALE IN KYIV

The Russian supermarket chain Paterson has decided to sell three of its stores in Kyiv. It was reported on April 2 that the chain's owners Alexei and Konstantin Mauergauz have given instructions to organize the sale of the three Kyiv stores to former deputy general director of the chain Nikolai Gabyshev.

As reported, the Mauergauz brothers held talks with Goldman Sachs Deutsche Bank about the sale of the entire Russian Paterson chain. The shareholders also submitted their sale proposals to Sedmoi Kontinent and Alfa Group. Market analysts say the entire chain can be valued at around $600 million.


EBRD TO ALLOCATE EUR 30M LOAN TO KYIV FOR TRAFFIC MANAGEMENT SYSTEM

The European Bank for Reconstruction and Development plans to allocate a loan of EUR 30 million to the Kyiv city administration for the design and implementation of an Active Traffic Management System and Road Improvement Program, the bank representative said on April 3. According to this, the EBRD board of directors will consider the issue of allocating the loan during its meeting on July 22, 2008. The total project cost is around EUR 33 million.

The EBRD is the largest financial investor in Ukraine. As of January 2008, the bank assumed obligations to grant investment worth EUR 3.2 billion within over 160 projects. The EBRD invested EUR 647 million in Ukrainian economy in 2007, which is 19% down compared to the EUR 797 million it invested in 2006. In 2008, the bank could invest $1 billion in Ukraine.


FOZZY-WEST TO CREATE WEST DEVELOPER COMPANY

CJSC Fozzy-West (Khmelnytsky) is planning to create the company West Developer Ltd., as the company announced on April 3. But the final decision will be made at the shareholder’s meeting on May 21, 2008.

Fozzy Group corporation is intending by the end of 2008 to invest over $230 million in its development. It is also planning by late 2008 to open 25 Silpo supermarkets, 15 Fora stores and two Fozzy C&C hypermarkets.

Fozzy Group has been working in Ukraine since 1997. It runs the Silpo supermarket chain (144 outlets), the Fora discount store chain (120), the Bud Zdorov (20) drug store chain, and four Fozzy C&C hypermarkets.


BRITISH NEWCITY GLOBAL DEVELOPMENT TO BUILD FIVE-STAR HOTEL OUTSIDE KYIV

U.K.-based Newcity Global Development plans to build a five-star hotel 30 km outside Kyiv in the direction of the town of Vyshgorod, the press service of Newcity Development, a Kyiv-based representative office of Newcity Global Development, reported on Thursday, April 4.

Newcity Development is currently developing plans for a six-story hotel building that will have 180 rooms on an overall area of 28,000 square meters. According to the press service, the length of the building will be 250 meters, while its width will be 25 meters. According to the project, a tennis court will be located on the roof of the hotel, and a sports park and a golf course will be located on the hotel's territory. Newcity Global Development will invest $447.925 million in commercial and housing real estate projects in Ukraine.