Friday, June 23, 2017

Kiev deludes itself into thinking that privatization brings in capital

By Vladimir V. Sytin

The State Property Fund of Ukraine will hold a competition on July 4 to select experts who could evaluate the state-owned block of shares of the Odessa port chemical plant that is subject to privatization. In addition, the fund has established the commission that is supposed to inventory plant's property until July 25. Readers of The Ukrainian Times know that 99.56% of shares of the Odessa enterprise were estimated at from $800 million to $1.5 billion.

Previously, State Property Fund made the decision to privatize the Black Sea Shipping Company whose fixed assets are estimated at more than 83 million grivnas.

In Soviet times, the state-owned company boasted a fleet of 400 ships. Unfortunately, most ships were transferred to offshore companies during the Kravchuk era of disastrous selloffs. In 1992 the Black Sea Shipping Company had 225 vessels, whereas the only one self-propelled scow Parutine remained at the enterprise by 2008.

The Odessa Regional Economic Court declared bankruptcy of the Black Sea Shipping Company in 2003. In February 2006, the debt-ridden enterprise started undergoing reorganization.

In addition, the plan for privatization of state-owned enterprises envisages the sale of the state water-ways enterprise UstDunaiVodDor and blue-chip companies, such as CentrEnergo (UX: CEEN) valued at $1 billion, the Kharkov-based turbine company Turboatom, which is 75% owned by the state, and the Zaporozhye titanomagnesium plant (51% owned by the state), the only producer of sponge titanium in Europe.

Observers agree that using privatization to cover a short-term budget problem creates a larger long-term problem. The profits of Ukrainian enterprises would flow out of this country, reducing the grivna’s exchange rate. In effect, allowing foreigners to acquire Ukraine’s national assets helps them to speculate against the grivna. Critics say a puppet government’s policy to get foreign loans at any price and to sell off the remnants of Ukrainian industry is the road to nowhere.

According to politologist Paul Craig Roberts, privatization is the vehicle to undercut economic sovereignty and increase profits by raising prices. Today
privatization is a way that government can reward cronies by giving them valuable public resources for a low price. In the United States, deregulation has resulted in high prices and poor services.

In Russia, the government was under a delusion that privatization brings in capital. This delusion caused the Russian government to turn over 20% of its oil company to foreign ownership. The only thing achieved by this strategic blunder was to deliver 20% of its oil profits into foreign hands.

Tuesday, June 20, 2017

Designer of unique aerostatic lift-and-carry machine seeks investors

Recently, Viktor Abeliants, author and manager of a large-scale project, has applied to the Kiev Polytechnic Institute (KPI), which cooperates with many educational and commercial institutions, for assistance in promotion of his engineering development.

It must be noted that the KPI participated in the project as well. Unfortunately, Ukraine is not ready to complete the project for reasons beyond control.

The project was carried out by Russian and Ukrainian leading aerospace research institutes and organizations. The technical proposal and sketch design of a disk-shaped aerostatic lift-and-carry machine with a hoisting capacity of 250-400 tons (APTS) were made on the basis of the results of research. This work was done to order of the Korolev research and production association Energia while the Ministry of Defense of the U.S.S.R. financed the project. The APTS was included in the State Plan of the Ministry of the Aircraft Industry of the U.S.S.R., and to date it has been seen as the highly efficient and topical project that is unique in world practice. After Ukraine achieved self-determination in 1991, the customer cut off funding and the work within the framework of the project was suspended.

The project is built on the mass-produced, well-mastered Antonov An-12 military transport airplane (NATO codename "Cub"). APTS is distinguished by high performance and a low production cost owing to a small amount of preliminary studies, use of mass-produced devices, equipment, units, materials whose unification accounted for 80%, few skilled personnel that was smaller in number than the group of specialists required to develop and manufacture a dirigible or aircraft with a similar hoisting capacity.

The work, which has been done already, enables any modern aircraft construction company specializing in the design and manufacture of medium and long-range aircraft to complete the project for a short period and at low costs provided the companies have cutting-edge technologies, production capacities, materials, scientific and technical personnel. Reportedly, U.S. and European aircraft construction companies have been taking an active part in the projects of building large cargo aircraft in various countries for many years.

The problem is that such a large-scale project can be implemented by the well-organized, consolidated institution, which incorporates not only investors and consumers but also general makers, suppliers of component parts, financiers, stakeholders and even natural persons. Undoubtedly, it is necessary to start seeking investors and basic manufacturers. This task requires a high professional level, the wide experience of organizational work and management expertise. Work done by the experts who have the above skills is considered as a determining factor at the present stage.

Additional information:

Tuesday, June 13, 2017

In Trieste, Western Balkan PMs to start forming customs union

As expected, prime ministers of Albania, Bosnia-Herzegovina, the Serbian province of Kosovo, Macedonia, Montenegro and Serbia will meet in the Italian city of Trieste within the framework of the 4th Berlin Process Summit to sign a document concerning the establishment of the Western Balkan common market. Initially, the agenda is supposed to include a discussion about the integrated digital network that will allow member countries to cut tariffs on roaming services within the single economic area.

Readers of The Ukrainian Times know that Aleksandar Vucic, Prime Minister of Serbia, put forward the initiative to form the Balkan Customs Union. Basic principles of the customs union include the renunciation by member countries of internal tariffs and duties, removal of all restrictions on the movement of goods, as well as the adoption of common customs tariffs.

The documents about the basic principles and terms of operation of the Balkan Customs Union read to the effect that GDP of the countries, which may join the organization, totalled $243.5 billion last year and their population exceeds 18 million. According to Mr. Vucic, the initiative would not only expand a trade turnover within the region but also promote economic growth and a higher standard of living in the member countries of the Balkan Customs Union.

Monday, June 12, 2017

Avangard makes cutting-edge missile complexes and more

In Russia, the Moscow-based engineering plant Avangard is the only manufacturer of missiles designed for the famous S-300 air defense systems, cutting-edge S-400 and awesomely fantastic S-500 missile complexes. Given that Avangard is the integrated plant, it makes not only missiles but also transport launching containers of these weapons.

In the 1960s, Avangard manufactured the missile designed for the S-75 air defense system that shot down the hawkish John McCain as he flew over a bridge near Hanoi in 1967. He ejected upside down moments before his plane crashed, suffering injuries that have plagued him ever since.

The American aggressor spent more than five years as a prisoner of war. The photo of the naked young Vietnamese girl fleeing down the road in terror from the American napalm behind her made Soviet people aware that Washington's war crimes cry for vengeance. Let McCain's fate be a lesson to other war hawks in the United States and their European vassals.

Friday, June 9, 2017

Russia develops infrastructure in Crimea

According to the Russian Ministry of Transportation, the installation of arched spans of a bridge across the Kerch Strait will be completed by winter. As a result, the Crimean and Kuban coasts will be connected by the structure. Vehicular traffic on the bridge is expected to kick-start at the end of next year while railroad communication between Crimea and Kuban or the Krasnodar Territory will be established in 2019.

In addition, the federal highway Taurida 280 kilometers long is under construction in Crimea already. It will connect the cities of Kerch, Simferopol and Sevastopol with the bridge across the Kerch Strait.

Thursday, June 8, 2017

Ideation launches new platform for innovation management

Recently, Ideation Inc., a U.S. company focusing on solutions to help innovators commercialize their innovations, has launched a new platform for innovation management, promotion, licensing, technology transfer and commercialization. It should be mentioned that Ideation is partnering with Ukrainian Global & Trade Investor Inc. in Ukraine to provide local presence for its program.

According to Chief Technology Officer Vic Korsun, Ukrainian scientists may register as Subject Matter Experts (SME). As SME, they can become available for hire as consultants and may be asked to do Patent Assessments. The payment for a Patent Assessment is planned to be $100 for a four-hour technical assessment in good English.

In addition, researchers may be asked to do Contract R&D in their Field of Expertise, as well as they can register recent technologies and products that they believe are valuable for commercial and industrial applications.

Mr. Korsun notes that there will be no charge for any of these services and no commission on transactions unless they are with parties outside of Ukraine in which case a small commission of 7.5% will be charged to compensate parties involved in finding the licensees or clients of technology developed by Ukrainian scientists and services but only once the payment has been received by its authors.

Importantly, the first 50,000 members will be given a lifetime charter membership for free and will be permanently identified as charter members.

Learn more at

Tuesday, June 6, 2017


Государственный комитет по телевидению и радиовещанию Украины выдал 112 разрешений на ввоз издательской продукции из России. Почти за два месяца со дня вступления в силу соответствующего постановления Кабинета Министров Госкомтелерадио получил 232 заявления на выдачу разрешений.

Кроме разрешённых, 77 рассмотренных заявлений получили позитивные выводы специалистов Госкомтелерадио, и осуществляется оформление разрешений. Ещё 43 заявки находятся на стадии рассмотрения.

Оформление первых полученных заявлений свидетельствует, что субъекты хозяйственной деятельности, которые осуществляют ввоз издательской продукции из России, ответственно отнеслись к просьбе Госкомтелерадио тщательно подбирать ассортимент продукции. Ни в одном из проверенных изданий не обнаружили информацию, которая нарушает положения статьи 28 Закона Украины «Об издательской деятельности».