[Ohio UZO News] Ukraine: New York Times; U.S. Embassy Kyiv press release; Georgia (2)

[Deychak, Orest]

Note:  There will be no mailings to this e-mail list until the week of
August 18th.  In the meantime, let us hope that Russia ceases to violate
independent Georgia's territorial integrity and that hostilities cease.

New York Times

Can the New Rich Buy Respect? One Ukrainian Oligarch Is Trying 

By LANDON THOMAS Jr. 

8 August 2008

Late Edition - Final

KIEV, Ukraine -- There comes a time in the life of an oligarch when
spending money becomes more important than making it. And for Victor
Pinchuk, the controversial oligarch and Ukraine's second-richest man
after Rinat Akhmetov, that time is now.

At his invitation, Paul McCartney recently performed before 350,000
exultant Ukrainians in Independence Square in Kiev during a thundering
rainstorm. ''This is for Ukrainya,'' Mr. Pinchuk yelled after the
performance in June.

It may have been, but the concert, which cost Mr. Pinchuk more than $5
million, was also the latest, most lavish stage for his own uneven
metamorphosis from grasping, post-Soviet oligarch to international mover
and shaker. Now, he calls the likes of the financier George Soros and
former President Bill Clinton friends.

The worldwide boom in commodities has created a growing number of
billionaires in once destitute economies like Russia, India and Ukraine.
At the same time, the global credit crisis has set back the ambitions of
many a Western titan and opened the way for a new breed of the
superrich, hungry for art, access and, ultimately, acceptance.

For Mr. Pinchuk, and many of his contemporaries in neighboring Russia,
the prizes they extracted from the ashes of the Soviet Union were a
function of brute political calculation and ruthless business practice.

But in an interconnected world, success is measured not only by the size
of their fortunes but also by their ability to use their billions to
achieve recognition and influence far beyond the grimy precincts of
their industrial triumphs.

His detractors say that Mr. Pinchuk's wealth would not have exploded had
he not married the only daughter of Leonid D. Kuchma, Ukraine's
controversial former president.

He has been accused of securing sweet deals on privatizations,
especially in the steel industry. One of his privatization deals has
been revoked. Another, his purchase of Nikopol, one of the world's
largest iron alloy producers, resulted in a lawsuit that accused Mr.
Pinchuk of paying bribes to officials and siphoning off $41 million in
profits.

That case was settled in 2006, and Mr. Pinchuk brushes off the
allegations. He also denies that he benefited from favoritism.

''My pipe business I created from scratch; my media assets and bank I
bought from the secondary market,'' he said. ''The only gift I get from
Kuchma is my wife. I am trying to be transparent but nobody likes rich
people.''

But his critics are undaunted. ''I wouldn't mind getting paid what his
P.R. people are getting paid to clean up his image,'' said Bruce S.
Marks, a lawyer who represented the rival Ukrainian businessman who
filed the lawsuit against Mr. Pinchuk.

In Russia, billionaire oligarchs like Roman A. Abramovich and Oleg V.
Deripaska have taken steps to present themselves as acceptable
international figures. Mr. Abramovich has invested millions in art and
soccer, while Mr. Deripaska met with Senator John McCain in 2006. But
few, if any, have been as bluntly aggressive in using art, philanthropy,
public policy and even rock 'n' roll to advance their agendas as Mr.
Pinchuk.

''What I am doing is not about image,'' said Mr. Pinchuk, 47. ''I just
want to participate in the building of my country.''

He is engaged in a level of philanthropy unparalleled in Ukraine, mixed
with supercharged celebrity hobnobbing. He is one of the larger
non-American donors to the foundation established by Mr. Clinton, and
has bankrolled a substantial AIDS awareness initiative in Ukraine. He is
equally at home enjoying a night out with Elton John or a private
showing of Jeff Koons's latest sculptures.

To sustain his quixotic dream of securing Ukraine's entry into the
European Union, he has financed programs in Washington at the Brookings
Institution and the Peterson Institute. And he lured George H. W. Bush,
Mr. Clinton, Karl Rove and Tony Blair to give speeches in Yalta to
support the cause.

None of this comes cheap. Such pursuits, along with his art purchases,
have cost Mr. Pinchuk about $200 million over the last four years out of
a fortune estimated at $5 billion to $10 billion.

But the investments are already reaping dividends. A Pinchuk luncheon at
Davos drew 400 luminaries; he has attended Mr. Clinton's 60th and Mr.
Bush's 80th birthday parties; and he can now call upon Damien Hirst,
known for his shark in formaldehyde, to propose a color scheme for his
new private jet. (The suggestion was blue.)

Mr. Pinchuk's endorsers include Kofi Annan as well as Mr. Soros, whom he
identified early on as a mentor. He has since become a large benefactor
to foundations backed by Mr. Soros.

''He is behaving like an enlightened capitalist, and there are not many
in that part of the world,'' Mr. Soros said.

It is not a role he was born into. Mr. Pinchuk was raised in a two-room
apartment in Dniepropetrovsk, a town south of Kiev.

As an engineer out of college, he had modest goals -- an apartment, a
TV, perhaps a dacha. ''This was my dream,'' he said. ''Then perestroika
started.''

Armed with a patent for a specialized form of pipe production, Mr.
Pinchuk persuaded his manager to let him market his services to pipe
factories. In 1990, he formed Interpipe as an engineering consulting
firm and positioned himself as a middleman.

With companies cut off from Moscow and the old business relationships,
and unschooled in the ways of marketing and entrepreneurship, Mr.
Pinchuk recreated the industrial chain of manufacturing steel --
converting coal to coke to pig iron to hot rolled coils to steel pipes
-- taking a cut at each stage.

When Ukraine began selling its assets in the 1990s, Mr. Pinchuk built up
stakes for a few million dollars in two pipe companies, which are now
worth billions.

His fortune has attracted attention in the West and Mr. Clinton's
attention in particular. Sharing a fondness for blending high policy
with kitschy celebrity gatherings, the two men have bonded.

''Victor is motivated by the rare quality of inclusion and doing
whatever he can to bring together those who can help with those in
need,'' Mr. Clinton said in a statement.

Mr. Pinchuk makes scant effort to cloak his wealth, whether it be a $23
million purchase of a Koons sculpture or the $160 million he recently
paid for a London estate. But such displays are not so easily digested
in Ukraine, a country ravaged by inflation, AIDS and an inchoate
political process.

Prime Minister Yulia V. Tymoshenko, who, like Mr. Pinchuk, is young and
glamorous, has advanced an anti-oligarch platform squarely focused on
Mr. Pinchuk and his ties to Mr. Kuchma.

When asked about her, Mr. Pinchuk declines to comment, saying only that
the country is in need of real leadership. ''Politicians love power. I
love freedom,'' he said. ''That is why I am not a politician.''

It is the day after the concert, and Mr. Pinchuk has invited select
guests to his sprawling Japanese garden. To honor Mr. McCartney, a
vegan, Mr. Pinchuk has flown in the Vienna Vegetable Orchestra. The
orchestra is now entertaining his brunch party by performing a cacophony
of pumpkin pounding and celery screeches.

Mr. McCartney shows up with his new girlfriend. William B. Taylor Jr.,
the United States ambassador to Ukraine, is in attendance, as is Viktor
A. Yushchenko, the president of Ukraine; Mikheil Saakashvili, the
president of Georgia; and Mr. Hirst, the artist, accompanied by Jay
Jopling, the influential art dealer.

It is in many ways a coming-out party, with each guest representing a
swatch of the gaudy tapestry of legitimacy that Mr. Pinchuk so badly
craves. The presence of Ambassador Taylor brings the implicit approval
of the United States; the Ukrainian and Georgian presidents attest to
his local clout; and the mere presence of Mr. Hirst and Mr. Jopling
underscores his weight in the world of modern art.

President Yushchenko, whose face still bears the scars that made him a
symbol during Ukraine's Orange Revolution, takes it all in -- the
shimmering garden, the rock star and, in the distance, a nine-hole golf
course that Mr. Pinchuk (who has just taken up the game) is building.

''The world has given it all to Mr. Pinchuk,'' he said. ''Now it is time
to give it back.''

 

U.S. Embassy Kyiv Press Release

August 08, 2008 

U.S. ASSISTANCE FOR FLOOD RELIEF IN UKRAINE 

Heavy rains and storms on July 26-27, 2008, caused massive flooding in
Western Ukraine and left 36 people dead, dozens missing, and more than
40,000 homes damaged or destroyed. In response to this crisis, the U.S.
Government has offered humanitarian assistance to the people of Ukraine
from several sources. 

The United States Government has authorized an initial disbursement of
$50,000 of disaster relief funding, to be disbursed through
International Relief and Development (IRD), a U.S. non-governmental
organization in Ukraine. IRD is providing immediate assistance to
approximately 800 households of Vizhnits'kiy and Putils'kiy rayons,
Chernivets'ka oblast, including bedding and drinking water kits. IRD
representatives visited the flooded regions of Western Ukraine to view
the situation first hand and to conduct a needs assessment. 

The Embassy's Charge D'Affairs, James D. Pettit, and other U.S.
officials traveled to the region August 6-8 to meet with local
government representatives and to survey damage. The American Chamber of
Commerce is organizing donations from U.S. companies in Ukraine and will
distribute assistance in consultation with the U.S. Embassy. 

The Embassy is also working with private organizations in their relief
efforts including the U.S.-Ukraine Business Council, U.S.-Ukraine
Foundation, the Ukrainian Federation of America, and the
Ukrainian-American Coordinating Council which are requesting donations
for relief efforts. Ambassador William Taylor met with members of the
Ukraine Disaster Assistance Fund in Washington, D.C. August 7 to brief
them on relief efforts. 

UPS, 3M, Boeing, Cargill, Coca-Cola, AES, MaxWell, SASI, Winner
Automotive Group, First International Resources, and the Asters law
firm, all members of the U.S.-Ukraine Business Council (USUBC), have
made substantial commitments to provide funds and in-kind contributions
to assist in the flood disaster assistance program in Western Ukraine. 

The Embassy has been in touch with the Red Cross' Kyiv office and has
offered advice to the American Chamber of Commerce as to how to most
effectively direct its private donations. 

The State Department is coordinating the delivery of six containers of
disaster-relief materials. The shipment includes materials such as
tents, bedding, clothing, boots, and medical supplies. The estimated
value of the contents of the six containers is $1 million. These
containers are expected to be shipped August 11. 

The Defense Department has sent representatives from EUCOM to coordinate
possible additional humanitarian aid and disaster relief in the form of
logistics support and construction projects. The intent will be to help
Ukrainian authorities reduce long term suffering and expedite the
region's return to normalcy. 

For those wishing to offer assistance or obtain more information, below
is a list of relevant contact information: 

U.S. Embassy Kyiv 
Christian Yarnell, Economic Section 
Phone: 38-044-490-4276, e-mail: yarnellC at state.gov 

International Federation of Red Cross and Red Crescent Societies 
Joe Lowry, Federation Representative for Belarus, Ukraine and Moldova; 
Phone: +380 674431657, email: joe.lowry at ifrc.org 
www.ifrc.org 

Ukrainian Red Cross Society 
National Committee 
30, Pushkinska St., Kyiv, 01004, Ukraine 
Phone: +38-044-235-01-57, fax: +38-044-288-16-58, email:
international at redcross.org.ua 
www.redcross.org.ua 
Please see the Red Cross Emergency Appeal attached. 

The American Chamber of Commerce 
42/44 Shovkovychna Vul., LL1 Floor 
Kyiv, 01601, Ukraine 
www.chamber.ua/disaster_relief/70 
Phone: +380-44-490-5800, fax: +380-44-490-5801, 
e-mail: chamber at chamber.ua 
The American Chamber of Commerce is organizing a donor drive from among
its members. 

U.S.-Ukraine Business Council 
1701 K Street, NW - Suite 903 
Washington, DC 20006 
Phone: +1-202-437-4707, fax: +1-202-223-1224 
The U.S.-Ukraine Business Council is organizing a donor drive from among
its members. Please see the announcement available at:
www.usubc.org/news/ukraine_disaster_assistance.php 

Government of Ukraine 
The Ministry of Emergencies and the Ministry of Health are the primary
agencies tasked to provide assistance to flood victims. 

The government has said that charitable donations and grants-in-aid may
be transferred to account number 37117125000023. The recipient is the
Ministry of Labor and Social Policy of Ukraine. EGRPOU 00013669. The
bank is the State Treasury of Ukraine, Kyiv. MFO 820172. 

 

AP

Georgia South Ossetia; Georgian army moves to retake South Ossetia 

8 August 2008

11:20

 

TSKHINVALI, Georgia (AP) - Dozens are reported dead in a major military
offensive launched by the former Soviet republic of Georgia.

Troops are trying to regain control over the breakaway province of South
Ossetia (ah-SEE'-shuh).

Russia maintains close ties to the region, and has responded by sending
tanks.

A spokesman for Russian Ground Forces says 10 Russian peacekeepers were
killed and 30 wounded when their barracks were hit in Georgian shelling.

Separatist officials in South Ossetia say 15 civilians were killed in
fighting overnight.

Georgian officials say seven civilians were wounded in bombing raids by
Russia.

Russia's Defense Ministry says it is sending reinforcements for its
peacekeepers. Russian state television and Georgian officials report a
convoy of tanks had crossed the border.

Georgia's president insists his government's military action was
provoked.


AP


US urges end to Georgia fighting


August 8, 2008


BEIJING (AP) - The White House on Friday urged Russia and Georgia to
peacefully resolve their dispute over South Ossetia.

"We urge restraint on all sides - that violence would be curtailed and
that direct dialogue could ensue in order to help resolve their
differences," White House spokeswoman Dana Perino told reporters.

She said the administration has been talking to both sides, trying to
help resolve the issue.

"We will continue to be engaged," Perino said in Beijing, where
President Bush was attending the Olympics opening ceremonies.

Gordon Johndroe, a White House spokesman, said Bush discussed the issue
with Russian Prime Minister Vladimir Putin when they chatted at a
luncheon Friday for world leaders hosted by Chinese President Hu Jintao.
Johndroe had no details about their talks.

Georgian troops launched a major military offensive Friday to regain
control over the breakaway province of South Ossetia. Georgian President
Mikhail Saakashvili accused Russia, which has close ties to the
separatists, of bombing Georgian territory.

A Russian official denied the bombing. But Putin said the Georgian
attack will draw retaliation and the Defense Ministry pledged to protect
South Ossetians, most of whom have Russian citizenship. 

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