EBRD invests in Ukrainian wind

Although you won’t remember, in March 2011, I told you about Ukraine’s first wind farm.  Yes I know it was a very short post, but as it said, it was a start.

Well since then alternative energy has progressed somewhat in Ukraine.  Solar, hydroelectric bio-fuelled  CHPs and wind.  A lot of investment is going into alternative energy production, although not enough to prevent the next generation of civil nuclear power facilities being built.

In fact a lot of money is going into energy in Ukraine, be it alternative, energy efficiency, next generation nuclear, domestic oil and gas exploration and production, as well as Shell and Chevron yesterday being confirmed as tender winners for shale extraction in the west and east of Ukraine.

Of course there are environmental and ecological concerns no matter how energy is produced.  5000 exploratory wells anticipated between Shell and Chevron looking for shale gas, there is a major concern over huge areas of prime agricultural land being used for bio-fuel production at great cost to the soil,  damage to ecosystems with hydroelectric production, flora and fauna damage via huge solar farms spreading across acres of land etc.

Quite simply there is no such thing a zero impact energy production any which way it is produced.  Anybody who says otherwise is a liar.  Even the component parts used to create alternative energy systems are manufactured using conventional energy in buildings constructed by and using materials creating with, conventional energy.  They all have a massive energy legacy to repay prior to actually being beneficial to the planet.

If that sounds like I know what I am talking about it is because I do.  I am a qualified civil engineer and have written numerous ISO 14001 environmental policies, environmental risk management programmes and audit procedures.

Anyway, back to Ukrainian alternative energy, and in particular – wind.

There is no doubt that Ukraine has huge potential in alternative energy production.  Anybody who doubts that need simply follow the projects and acquisitions of DTEK, a company owned by the richest man in Ukraine, Rinat Akhmetov.  Whilst he is best known for being an oligarch whose riches comes from metal production and also being the owner of Shakhtar Donetsk FC, only the willfully blind would not have noticed his serious investments into all areas of energy production over the past 3 or 4 years.  Alternative energy is no exception when it comes to Mr Akhmetov’s energy investment portfolio.

It is therefore no surprise to find that the EBRD in conjunction with the EU’s Clean Technology Fund have decided to pour Euro 9.5 million and Euro 3.8 million respectively (Euro 13.3 million in total) into a Ukrainian/Italian company called Eco-Optima.  The loan is over a 10 year period and payable in two tranches.

Eco-Optima intend to build a wind farm in Starry Sambir (near Lviv) that will consist of 5 wind turbines with an anticipated total annual production of 25.5 GWh.  That is enough for just over 10,000 homes annual useage by my rough calculation, and also reduce carbon emissions by approximately 30,000 per year (in comparison to non-nuclear conventional energy production if we discount any energy legacy involved in production of the technology).

Maybe more encouragingly than anything I have written so far though, is that it is, to my knowledge, the first EBRD investment into Ukrainian wind – ever – which is a positive thing in and of itself!

Ukraine signs new gas deal – with RWE of Germany!

You will remember back in early March I mentioned a cunning plan from the government of Ukraine to buy gas from RWE in Germany and reverse the flow of sections of the transport system in order to import it, thus reducing the amount of contractually very expensive Russian gas?

Well, Naftogas Ukraine has quietly signed an agreement earlier this month with RWE  just as predicted.

Now then, what are the chances of Turkish LNG being shipped Bulgaria and reversing the flow back to Ukraine (another option) until the Odessa LNG terminal is build?

Bold political and energy moves indeed, as it will certainly annoy the newly installed Mr Putin and Gazprom who have happily been milking Ukraine for the last few years.

Let’s see what the Russian response will be!

* * * * *

As an aside, if you read yesterday’s post and are wondering what the outcome of the EU-Ukraine summit was, here is the official press release.  No surprises in it just as it was no surprise the EU Euro 2012 boycott failed to take off.

What should be clear to the EU by now is that the current government is quite happy to, and indeed is doing quite well at, creating the legislative norms that run parallel to those of the EU and as such the DCFTA side of the EU/Ukraine negotiated agreement will continue to progress fairly well.  The political AA side of the agreement will not progress much at all.  All such signs are documented by the EU itself in its ENP Country Progress Report – Ukraine!

Quite a contrast to the previous government where the political integration was far more achievable, but it was also a government completely unable to to draft and pass anything like legislation meeting EU norms.

Given both sides will continue to have the same strengths and weaknesses, it would seem a reasonable tactic to encourage the current government along the legislative reformation path as much as possible, and then hope for a change of government who are legislatively incompetent but will politically meet the grade.

Failing that, sooner or later the EU will realise that financial investigations and the seizure of nefariously acquired or hidden  assets held within the EU territory relating to all Ukrainian politicians, from all parties, will be the most feared stick they have in their bag that may force Ukrainian politicians to go along the EU’s preferred path regardless of their strengths or weaknesses. – Now there’s a bold policy step!

(Alternatively, the EU can just let Ukraine drift back to Russia and watch it help make the Eurasian Union become a workable model.)

Keeping promises – Expat-blog.com

OK.  Today we take a break from policies, politics, human rights, civil liberties etc.  There is no need to, there is more than sufficient activity (or inactivity) generated within Ukraine, or externally affecting Ukraine, to write five or ten posts a day most days.  I simply choose one each day.

Today though I keep a promise to Julien, the founder of Expat-blog, which is an umbrella website occupied by a large number of Expat/Immigrant blogs from around the world.  In amongst this global treasure trove of Expat tips, trials and tribulations, this blog is a small part.

Anyway, Julien emailed me and asked me to draw attention to the new housing and jobs sections, which if you click on those links, should take you to those in Ukraine.

I have absolutely no idea how good, bad or indifferent the information in those sections are as I do not need housing or a job in Ukraine.  I have been here far too long to need help with either.  Therefore I can offer no opinion and of course cannot vouch for the integrity of any content within those sections.  Any comments you may have should be directed towards Julien at Expat-blog and not me.

However, this post now keeps my promise to Julien and Expat-blog.  Even if you have no interest in housing or jobs, it is still well worth poking around in the darker corners of that website simply to see if life as an Expat/immigrant in country X is how you thought it would be.

After all, if you are reading my blog, and an average of a thousand people a day do, then you’ll read just about anything.  Amongst those on Expat-blog you are certain to find some that are written in a far superior fashion and manage to put together something like coherent thoughts. – That will make a nice change for you all compared to my random ruminations!

Tomorrow, back to the usual issues you expect to find here at Odessablog.

European Space Agency – Ukraine assesses costs of membership

Space.  The final frontier.  These are the financial musings of Ukraine over whether to join the European Space Agency.  To explore strange new worlds, seek out new life and civilisations.  To boldly go where no Ukrainian has gone before.

No?  Ok, let’s try this:

Clangers, froglitts, Soup Dragons?

Errrm OK.  Maybe the aspirations, imagination and wondering of the night sky is not exactly going to be Star Trek in my lifetime, and the discovery of a Clanger or Froglitt would be incomprehensible, let alone a Vulcan, the Borg, or the appearance of a Vermicious Knid inside an elevator (with or without Willy Wonka).

Anyway, space is not exactly a new frontier as far as Ukraine is concerned.  Even if we completely and utterly ignore its experience and expertise during the days of the USSR, in the last 20 years Ukraine has propelled into space in excess of 100 bits and pieces.  In fact Ukraine accounts for approximately 13% of all global launches.

At the moment, amongst many space orientated things, it is heavily involved in a joint R&D programme with China, as well as closer neighbours east and west.  In the scheme of all things Ukrainian, space is something it does rather well.

It seems therefore natural that Ukraine would be interested in joining   the European Space Agency.  It would also seem a fairly good idea from a European viewpoint to have a tried, tested and successful new entrant to the agency.

Thus, it seems, Ukraine is now looking at membership and more importantly given the condition of the State coffers, the membership fees, rather closely.  One has to hope that when finances allow, Ukraine will decide to join the ESA.  It seems like a prima facie win/win situation for all.

The Dnipropetrovsk investment roadshow – Brussels 12 April 2012

Odds-bodkins!

It for weeks I have been meaning to post this and then something else took precedents and now it is almost too late!

Tomorrow, Committee of the Regions of the EU (Bâtiment Jacques Delors, Rue Belliard 99-101, B – 1040 Brussels -
Belgium), 0930 – 1300, the Dnipropetrovsk investment roadshow takes place.  (Actually there are some interesting stats within that link,)

The following dignitaries, officials and commentators will grace the event:

•Mr.GerhardSTAHL,Secretary-GeneraloftheCommitteeoftheRegions;
•Mr.KonstantinYELISEEV,RepresentativeofUkrainetotheEU;
•Mr.MiloslavRANSDORF,MemberoftheEuropeanParliament;
•Mr.OleksandrVILKUL,HeadofDnipropetrovskRegionalStateAdministration;
•Mr.YevhenUDOD,HeadofDnipropetrovskRegionalCouncil;
•Mr. AndreyMUKSIMOV, Deputy Head of DnipropetrovskRegional State Administration;
•Mr. AnatoliyKOMIRNOY, Director of the municipal enterprise “DnipropetrovskInvestment Agency”;
•Mr. Anders ASLUND, Senior Researcher of Peterson Institute for International Economics (USA) (tbc);
•Mr. Francois-OLIVIER CAILLEAU, General Director CIS “MaїsadourSemences” (France)
•Moderator: Dr. SILKE TONSHÖFF, Committee of the Regions, Head of Unit

Please note, even if you have no money to invest and/or cannot even pronounce Dnipropetrovsk, that is no reason not to attend.  1130 – 1300 is cocktail time (and I am sure there will be a few nibbles).  As many a taxpayer will state, the EU is synonymous with a free lunch and it seems one could be on one offer – with cocktails!

Go on, get yourself along!

Ukrainian Investment Summit – London 18-20 April 2012

Following swiftly on the heels of “The French Spring” post yesterday advertising an experience in film, today I draw your attention to the annual Ukrainian Investment Summit which takes places between 18th-20th April at Grange St Paul’s Hotel in London.

An event ably assisted and promoted by the Adam Smith Institute.

To make matters clear, it is not a showcase to get the Ukrainian oligarchy to buy what they haven’t already bought of the One Hyde Park development in London, but an opportunity to highlight investment opportunities in Ukraine.

Possibly quite timely this year considering the DCFTA and AA agreements between Ukraine and the EU were initialed by both sides in Brussels on 30th March.  Whilst not yet signed and ratified, the initialing does at least provide prospective investors with a guide to contractually agreed practices that will come into effect when it is.

So if you want to get up close and personal with many of the Ukrainian leading companies as well as the leading foreign companies already in Ukraine, plus get the chance to listen to both Ukrainian and foreign political and business leaders active here,  go along to the Ukrainian Investment Summit and see what it’s all about.

Tomorrow I will not be advertising any events – We will return to deliberating over policy.

There’s gold in them there hills! Well Lugansk actually

There’s gold in them there hills!

Well actually there isn’t.  Or maybe there is, but this is not the Klondike.  I am actually writing about a gold mine.  Not a metaphorical gold mine but an actual gold mine.

I am talking about the Bobrikova deposit in Lugansk which has attracted the attention of the Australians.  Good miners the Australians you know!

I know what you are thinking.  Well of course if there is gold in Ukraine, given the fact that currently everybody loves gold (despite the obvious bubble bursting when the markets get brave again and leave that safe haven) then Ukraine will obviously mine it.  Even if it has to be in a joint venture with the Australians.

Although its news, it is hardly news that interests me very much!

Well, that depends if you are what is known as a “sophisticated investor”, or as they are known in the financial investment world, “Sophs”.  If you are, the mere fact I am mentioning your little circle and the fact the above link states that the companies mining for this gold are looking to raise $50 million in investment has now got your attention, fleeting or more sustained.

I can tell you “Sophs” that there is an IPO in the next few months on an exchange that is not Ukrainian but is an EU exchange to raise this investment.

As you “Sophs” are generally quite intelligent, you will be able to read between the lines of what I am about to write and compare the opportunities to those that make US Congressmen very rich when they obtain shares prior to an IPO and then sell them once the IPO has been successful, or indeed keep them in their portfolio as is their want.

I may or may not be in a position to point you in the right direction to negotiate share purchases prior to the IPO.  I may or may not be in possession of the geology survey.  I may or may not know the who and how for entry in this deal.

Being “Sophs” you will be aware of the risks of buying non quoted stock prior to the IPO, but you will also be aware of the returns after a successful IPO.  Needless to say I am about as qualified to give financial or investment advice as Gordon Brown was to run the UK budget for a decade, however, you are “Sophs” and need only to know the opportunity exists.

If you are an interested “Soph”, you may want to leave a comment below that will never reach the public domain or be published here, but will provide some contact details for others to contact you in due course and confidentially.

OK – on to other matters tomorrow that will certainly no be of interest to “Sophs” but maybe to the simply sophisticated.  Then again maybe not!

Corruption – The Puppet Masters

Anybody who has put deals together in Ukraine involving commodities either domestically or for import/export will have come across smoke and mirrors, shell companies, umbrella companies, kick-backs, rebates to seemingly uninvolved foreign registered companies, intermediaries and business associates closely connected to decision makers etc.

The bigger the numbers involved, the further up the slippery pole the puppet masters sit.

Only this morning I had an inquiry from a corporation external to Ukraine seeking a rolling commodity contract and requesting introduction to a person of influence.  Introduction duly made of course.  Does that make me an intermediary or an advocate for their cause?  One man’s lobbying is another man’s advocacy after all.  The difference is transparency.

That is not to single Ukraine out from the rest of the international community of course.  Personal relationships count for a great deal, particularly the higher up the greasy pole you climb.  Whilst I no longer climb any poles or even hang from them, just like any alumni system, getting access or being accessed yourself never completely disappears.  Such is the web of patronage or loyalty within certain  movements in any society, Ukrainian or otherwise.

Anyway, for those of you who really want an insight into the shenanigans of legal manipulation, corruption and smoke and mirrors at the highest levels, this report from the World Bank called Puppet Masters is extremely accurate and terribly interesting, albeit giving the clueless a clue regarding how to go about it.

A long and somewhat technical read in places, it certainly does not miss the mark.

In most cases around the globe, it can be metaphorically stated that the fish rots from the head down, although that is not necessarily always the case.  Occasionally the fish maybe rotting unbeknown to the head of the fish.

The question therefore arises, if the police who police the police are corrupt, who polices the police police?