Posts Tagged ‘odessa’

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A day with the “Beeb”

May 21, 2013

A very short entry today as I have spent the day filming with the BBC talking drug and human trafficking, smuggling and counterfeit goods in Odessa – naturally I will eagerly await my BAFTA nomination!

So having spent the day talking trafficking routes in and out of Odessa and more broadly Ukraine – and basically stating the obvious, in that serious and organised crime will always choose the route of least resistance – and Ukraine is probably not as robust as the EU States when it comes to preventing entry or egress of illicit “goods” on the European continent, it is perhaps good timing that today, an announcement of the opening of Odessa Port’s new terminal will be in Autumn 2013 – an absolutely necessary economic infrastructure addition in respect of legitimate trade – but also another point of weakness in a somewhat porous and very large international land and sea Odessa border.

With such a large international land and sea border, how can Odessa be anything other than porous and a route of least resistance for serious and organised crime?

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$40 Billion annual road maintenance budget – Ukraine

May 8, 2013

The current budget for road maintenance in Ukraine sits at $16.9 billion – which sounds, and indeed is, a lot of money – and yet the state of Ukrainian roads resembles something like those of Berlin circa 1945 after the 363 air raids to which it was subjected by bomber command.

As such, Vice Prime Minister Oleksandr Vilkul has made very forceful representations to increase the annual road maintenance budget to $40 billion – almost a 300% increase.

He also proposes to reorganise the accountability of those responsible for road maintenance.  In short, the 117.7 thousand kilometers of regional roads will become the personal responsibility of the heads of the regional state authorities – thus removing the involvement of Ukrautodor, the State agency responsible for road maintenance, leaving it responsible for a paltry 52 kilometers of State adopted roads.

Naturally there is an increased opportunity for either direct theft of funds, or cronyism and associated kick-backs, but there is also a very clear area of responsibility and indeed personal responsibility for road maintenance within the regions – which is a good thing.

Odessa, March 2013

Odessa, March 2013

The above is a rather extreme example of holes in the road in Odessa I will grant – most are only ankle deep, but there are so many ankle deep holes that the 1.5 million residents of Odessa could all put a foot in each hole and there would still be more holes than feet to put in them!

The question relating to the solid lobbying for such a massive increase in funding is really whether it has been worked out on a cost basis for maintenance alone – or whether there is a percentage included for the undoubted graft that will occur at regional level to be plundered for personal gain, and yet still provide a significant and noticeable difference to the quality of the regional road infrastructure.

With no noticeable improvements over the decade I have lived in Odessa at $16.9 billion annually – what improvements will $40 billion annually get me?

A positive outcome will only be forthcoming if some regional authority heads are suddenly lopped off should road quality remain exceptionally poor I suspect – but  I won’t hold my breath for that to happen!

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Danube Action Plan – Progress Report

April 10, 2013

What seems like a very long time ago, back in April 2011 in fact, I wrote about an EU sponsored action plan relating to the River Danube and the nations through which it flows.

It naturally effects Ukraine, as the Danube Delta is partly Ukrainian territory – shared with Romania.  It is in fact part of my home Oblast of Odessa, and the Delta happens to be a very beautiful place indeed.

It is now time for an update on how the EU action plan has progressed thus far.

Let’s hope that by 2020 the environmental and ecological targets are met – together with the social and economic targets too.

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Regional Development (Again)

April 1, 2013

A few days ago I briefly wrote about regional development in Ukraine, concluding that “Accepting there is no perfect method – why do we expect a perfect outcome?” – A fair point I think.

What I didn’t do, is state what I thought would be a reasonable model to pursue – naughty me!

After all, I get rather tired of reading commentary and monologue that is quick and oft justified in the crucification of the current models and their outcomes – but that crucially omit any thought about how to improve the model, or if the model is about as good as it can be, how to manage the expectations for perfect results from an imperfect model.

Naturally the first thing to recognise is that regional development is exactly that – regional.

Whilst some issues will be constant throughout many regions and thus should form part of a national development plan controlled and implemented nationally – regional development issues are the prerogative of local government and they are best placed to identify and implement local development.

In short, the individualities of Odessa are not all easily transposed to work effectively in Carpathia – despite some prima facie compatibilities.  Not only in the local needs for infrastructure and economic drivers, but also in the availability and regionally bespoke arena of human capital.

The training and development needs of industrialised Donetsk  are not so easily transposed to Yalta for example.  That said, putting in place parameters on regional development simply because “that isn’t how it works here” is not necessarily a good thing either.  Internal innovation at a regional level is one method of development – particularly by SMEs.

Putting up barriers to local innovation is a self-defeating policy for any local government.  Why should local government work harder to generate regional development if SMEs have the desire and ability to work hard instead?  Let them.

Is it not a smarter policy for local government to encourage rather than unnecessarily corral the innovation of its populous?

This naturally would lead to greater interaction between local business and local government and a dialogue that should, theoretically, lead to local government creating a structure whereby the local populous generate greater production either by active assistance or by simply staying out of the way.  In doing so, those SMEs that thrive obviously become sustainable.  Those that fail will reinvent themselves if there is a medium for knowledge exchange within the local business community – preferably one where local government sits and listens.

Where local government can help is in the arena of sustainable and ecologically wise city planning.

Odessa is replete with brownfield sites which stand abandoned and could be turned into business parks or engineering parks.  Brand new, shiny, business incubators are not necessarily going to either meet the needs of the SMEs or provide any dynamic gains for the local economy or employment.

In converting the plentiful brownfield sites, is there not an opportunity to be environmentally conscious at the same time when it comes to energy efficiency?  Does that not create an opportunity for local “green” business and tick all those globally friendly boxes, encouraging grants to continue with such development of other brownfield sites?

If a site is beyond renovation or situated in an area where it holds not commercial or society benefits – flatten it!

If made from brick, crush it and use the crushed material as aggregate to compact under new roads or road repairs rather than the cheapest rubbish the nefariously won tender holders now use.  What is wrong with recycling the materials in derelict buildings?

Collect and sell as scrap the thousands of miles of steel rusting away in disused brownfield buildings if they need to be demolished.  There is an international market for scrap metal – use it!

Has anybody in the Odessa local government even tried to evaluate the benefits of having so many business incubators via a vis development of a brownfield site into a business park or engineering park?  Are they even capable of coming up with a reasonable evaluation model?  I doubt it.

Local authorities should also consider the cultural side of local life.  Can an abandoned factory warehouse be used for a dance centre, a go-cart course, a youth club etc rather than stand empty generating precisely nothing – not even local good-will toward the local government, let alone community spirit?

It is all very well putting up cheap and cheerful play equipment, or resurfacing a footpath in a run up before local or national elections in an effort to try and buy voters, but such acts are seen for what they are.  They are certainly not what can be classed as regional development.

As many people state, they wish elections would happen every year for that is the only time the politicians actually actively make good the state of necessary repair in the local voting regional seats.

Naturally there is the issue of funding – and here perhaps more than anywhere, local government has a vital role to play.  Not only in spreading out the meager budget granted by Kyiv to meet immediate problems – and stealing half of it doesn’t help – but also in attracting funding from the EU, World Bank, EBRD, EIB etc., not only by way of grants but also by way of loans.

Turning the financing of local development into a business whereby money has to be repaid rather than just accepted as charity by local government, would necessarily sharpen minds when it comes to return on investment within the local community – whether that return be directly economic or by way social good will through increasing the quality of life.  In short something of a mixture of that often hard to identify “added value”, “good will”,  or community/local government driven “inclusive growth”.

When considering the “feel good” factor within local society, it is all very well to have the roads in Odessa city centre is good condition, all the facades looking pristine – not that the current local authorities can even manage that, despite it being all that 99% of tourists ever see and experience – what about the redevelopment of urban areas in dire need of attention – such as Moldovanka in Odessa?

Where is the plan, where is the on-going implementation of that plan, and where is the budgetary forecasts for such much needed development?  If it exists on paper, it certainly has not been turned into reality in any shape or form.  In the decade I have been living in Odessa, Molodvanka has done nothing other than fall apart even further.

When part of the city becomes equated with ever increasing squaller, is it any wonder it becomes a haven for Russian and Moldavian criminals in hiding – for drug dealers – for an illicit sex trade – a place to hire a thug or two?  In Moldovanka, the development issue is certainly the quality of housing and the lack of policing.  We are talking about fundamentals for a part of a city that aspires to be a rising star of European tourism.

The issues of Moldovanka are hardly likely to give a large economic return when tackled – at least immediately – but if Odessa is a region, Moldovanka is a region within a region and is in desperate need of development before it literally falls down both physically and to the lowest levels of society.  Perhaps that is the local authorities plan – who knows, they do not seem to have another that are actually implementing to prevent it.

Anyway, though the areas I have mentioned above are broad in their scope and less than detailed, they do at least outline some issues for consideration when it comes to development for Odessa as city – and to my mind all major cities are a region unto themselves, albeit within the larger prescribed regions as recognised by central government.

Thus, in an effort not to be like so many commentators who put forward no alternatives, I have at least spent an entire 20 minutes thinking about the development model – rather than just pooh-pooh it without any constructive thinking whatsoever.  After all, I would hate for you dear readers to simply write me off as just another persistent complainer unable or too lazy to offer up some thoughts for improvement!

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A rare moment – Convictions for Human Trafficking involving Ukraine

March 19, 2013

Right – Back on my soap box relating to an cause I passionately believe in.

For once a flicker of light in an otherwise very black hole known as human trafficking.

As it is no secret that convictions globally for this abhorrent crime are minimal – despite the sheer scale of the problem in terms of numbers and illicit money – the SBU and foreign partner agencies have managed to get convictions of 4 people for trafficking Ukrainian women for sexual exploitation.

The Ukrainian involved has been jailed for 5 years.

Hurrah and huzzah!

Let us hope that Ukraine remembers its commitments to the UN relating to The Basic Principles of Justice for Victims of Crime and Abuse of Power.

If Ukraine needs reminding,  the trafficked women should receive:

Victims have a right be treated with compassion and respect.
Victims have a right to information on the proceedings.
Victims have a right to present their views to the judicial authorities.
Victims have a right to legal representation at no cost should they be unable to afford it.
Victims have a right to see their privacy and identity protected.
Victims have a right to protection against retaliation and intimidation.
Victims have a right to be offered the opportunity to participate in mediation.
Victims have a right to receive compensation from the state in cases of violent crime.
Victims have the right to receive social assistance.

Will Ukraine apply those points relevant to these women as it has stated it will on several occasions now the legal system has done its job – or will they be cast adrift to be possibly re-trafficked in the future?

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A market opportunity for facilities management – or a privitisation disaster waiting to happen?

March 17, 2013

For those who do not live in Ukraine, one of the inherited legacies of the USSR that still continues, is that of the Zhek and its responsibilities for maintenance of common areas in otherwise now privately owned apartment blocks.

Quite simply put, whilst the last 20 years has seen a massive move to private ownership of apartments, stairways, lifts, common entrances, lighting and general maintenance of all common use areas has remained the responsibility of the Zhek in the vast majority of apartment buildings both old and new.

Needless to say that whilst paying the monthly Zhek bill, known as the “quadplata” is supposed to insure the cleanliness and functioning of all common areas in most apartments blocks around the country – and you have no choice but to pay – the actual maintenance rarely happens, and when it does it is hardly what can be called timely.

However, it appears that this responsibility is likely to cease in 2015 if the national action plan 2010 – 2014 (also known as “Prosperous Society,  Competitive Economy, Effective State”) is to become a reality.

That will theoretically open up a huge percentage of the national housing stock to facilities management companies – with an domestic occupancy well used to paying through the nose for little to no (timely) service – and in all probability, some serious profit margins.

One has to suspect that there will be a fair few people in the RADA having their closest friends and/or family opening facilities management companies in preparation for 2015 when they will suddenly be activated.

Tomorrow – something more interesting (at least for some).  Tomorrow, for the first time in a few years, the blog is going nuclear!

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Beware the Tides of March – Black Sea ecosystem

March 16, 2013

Ok – lame title, but “Beware the Ides of March” is such a wonderful line it would be a shame not to use it – especially so when on the Ides of March several issues relating to the Black Sea and its ecosystem allow for a little corny wordplay in the title of this entry.

So what issues am I referring to that relate specifically to?

Well firstly a large oil spill off the coast of Odessa near the Danube Delta.

Secondly, and much more importantly, a UN report on the dramatic drop in shark numbers in the Black Sea.

That’s it for today.  Having smugly managed to engineer a mention of the Ides of March into my entry written on the Ides of March – albeit published the day after – I am going to enjoy a warm and sunny afternoon in Odessa.

As a post script for all you WWII boffins – and staying with the Ides of March theme – on 15th March 1939, Carpatho-Ukraine declared its independence from Czechoslovakia, but was annexed by Hungary the next day. “Beware the Ides of March” was seemingly ignored.

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Sold – Odessa Oil Refinery (A crude and murky business)

March 12, 2013

Back in October 2011, I mentioned that the LukOil terminal in Odessa had just been put up for sale.

It has now sold.  At least it is sold subject to contract exchange.

The new owners are an umbrella company called VETEK LLC based in Kyiv.  VETEK was registered as a company in Kyiv on 28th February 2013 and is headed by a chap named Andrey Koshel.

VETEK LLC, appears to be a holding/umbrella company for Gaz Ukraine – fronted by Serhiy Kurchenko, the Kharkiv lawyer, owner of Metalist Kharkiv FC, and friend of Olexander Yanukovych, son of the current president of Ukraine.

If that seems simple, Gas Ukraine is indeed a holding/umbrella company for a number of companies and has its head office in Simferopol Crimea, and who owns what behind the front of Serhiy Kurchenko is far more difficult to determine.  Gas Ukraine, naturally, is an importer of gas, LNG, oil and owns a rapidly expanding empire of several hundred petrol stations dotted around the country.

It also appears that Odessa refinery was not the first choice acquisition for VETEK/Gaz Ukraine – It originally went after the Lysychansk refinery owned by TNK/BP who subsequently removed it from sale due to it being an asset it could charge Rosneft for during its take over.

Anyway, the net result is that whomever is behind VETEK LLC and Andrey Koshel – or should we say whomever is behind Serhiy Kurchenko who fronts Gaz Ukraine, now own the Odessa refinery – which has not operated since 2010.

In fact the only Ukrainian refinery to operate in the past 3 years has been Ukrtatnefta – who I mentioned exactly one month ago - embroiled in nefarious circumstances - naturally.

So, it will be interesting to see whether the new owners of the Odessa refinery will make it the second of the six existing oil terminals to be operating in Ukraine, or whether Ukrtatneft will be allowed to continue as the only refinery in the nation to be active.

Smelly? – Maybe it’s just the gas!

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