1. 8th
ISSUE
CROSS-BORDER
DISTANCE SELLING
May 2012
IN UKRAINE: INFO DIGEST
WELCOME DEAR COLLEAGUES!
We are presenting the following issue of the Digest, as usual bringing up
a short set of news about Ukraine.
Despite the instability of domestic politics, business, in particular, distance
selling and postal logistics continues to steadily gain momentum. The
standard of living rises in Ukraine and this positively affects the levels of
consumption of goods and services (look up details on the pages of the
following digest).
It is my pleasure to point out that Ukraine is increasingly becoming the
centre of the grand world events. We are happy to welcome you on
the Football Championship EURO-2012, and the First Kyiv International
Biennale of Contemporary Art ARSENALE 2012, which will help us to
open up a completely new Ukraine for you.
Every day we are getting closer to Europe, which makes our business
relationships more durable.
Best wishes,
We wish success in our projects! UADM President
Valentyn Kalashnyk
MARKET NEWS
RETAIL TURNOVER
OF UKRAINE CONTINUES TO GROW
The National Statistics Service of Ukraine has announced that According to experts, retail sales continued to show strong
in January-April, the turnover of the retail trade and restaurant growth due to the relatively stable increase in revenue and
sector in Ukraine has grown by 14.8% compared with the same reduced devaluation expectations. In general, experts pre-
period the year before. dict the growth in retail sales in 2012 by 10%. In 2011, retail
turnover in Ukraine grew by 14% to 43.2 billion US dollars.
In nominal terms, the figure exceeded 28 billion US dollars.
Based on KORRESPONDENT.NET report
The National Statistics Service of Ukraine also reminds, that in
January-April 2011, retail trade turnover grew by 15.4% com-
pared with the same period of 2010.
NEWS
New regulations for mail orders and other goods to cross the Ukrainian border
HOT
A new Customs Code has entered into force since June 1.
To learn more read the article on the next page.
2. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
UKRAINE AND EU APPROVE CUSTOMS
COOPERATION STRATEGY
Kyiv, May 25, 2012. Ukraine and the EU reached a political agree-
ment on joint cooperation strategy regarding customs. Among
other issues, the cooperation will promote information exchange
and introduce efficient countering of customs violations.
The decision ensued from the meeting of the First Vice Prime
Minister of Ukraine Valeriy Khoroshkovskyi and Algirdas Se-
meta, EU Commissioner for Taxation, Customs, Audit and Anti-
fraud. The new plan of action – Strategic Framework for Cus-
toms Cooperation – will contribute to the quality of bilateral
trade relations and help protect the citizens of both parties
against customs fraud. The draft of the document was first
submitted to the EU in July of 2011.
The strategy includes four components: reform of customs
control, preparation of the expansion of the transit system, in-
stitutional development, and customs information exchange. the enforcement of the time limit to perform customs control
procedure, prohibition to confiscate goods and vehicles, as well
The three priorities for customs cooperation of the EU and as absence of the right to execute court rulings independently.
Ukraine for 2011-2013 are the creation of safe and smooth con-
ditions for trade (namely, speeding up all of the customs pro- The code provides the exhaustive list of documents. One is ex-
ceedings, integrated border control, improvement of border pected to submit for control at the customs. The document also
infrastructure), introduction of the effective analysis of customs provides a catalogue of items, which are considered personal
violations through information exchange, and modernization of belongings and cannot be taxed when taken across the border.
Ukraine’s customs service (fight against corruption, simplifica-
tion of procedures, introduction of up-to-date standards). Among all new Customs Code innovations the most important
is the Article 234 for distance selling according to which all goods
The State Customs Service is responsible for the implementation transferred (sent) are not due to taxing if their invoice value is not
of the customs-related part of the Agenda. One of the practical more than equivalent of 300 Euro which is 100 Euro more than it
achievements in the field has been the delegation of the right to was previously allowed. Mostly this new Code is alike its European
issue EUR.1 movement certificate to the State Customs Service. analogs, because during its creation the perspective for attracting
The certificate is a customs clearance, which contains data on the foreign capital and liberalization of customs control was being tak-
origin of goods (the manufacturer provides this information). en into consideration. The consignation service has been available
in the Ukrainian market for more than 7 years. With new Customs
As part of Ukraine’s efforts to implement international stand- Code the terms of the goods to cross the border will considerably
ards, including European, into its customs legislation, in March decrease, and it means that delivery terms of goods to end con-
of 2012 the Ukrainian parliament adopted a new Customs sumers will decrease too. In its turn a new customs rate of 300 Euro
Code of Ukraine. The EU customs and logistics experts partici- will allow importing a more diversified range of goods.
pated in the preparation of the code.
The State Customs Service advocates that the code will help
Among the most valuable innovations, introduced by the code, stimulate foreign economic activity and increase trade volume
is the right of entities of foreign economic activity to be sub- along with state budget income.
jected to customs processing at any customs body. Additionally,
the customs authorities now face several limitations that include Source: ECONOMICS.LB.UA
A NEW BRAND WILL APPEAR ON THE
UKRAINIAN MARKET
A chain store of Italian fashion clothing OVS has agreed to
enter the Ukrainian market of clothes and will work in partner-
ship with Martex. OVS unites shops and part of the Gruppo
Coin with a yearly turnover of 1.63 billion euros. At the same
time Maratex bade farewell with his other partner. Shops of
popular British clothing brand Peacocks will no longer work in
Ukraine. This chain store used to bring together 9 Peacocks
stores in Ukraine and 42 in Russia. The cause of the closure of
stores in Ukraine and Russia, was the change of owners of Pea-
cocks. The new investor, Scottish Edinburgh Woollen Mil, fo-
cused on the development of “the network” in his home mar-
ket “- said co-owner of Maratex Dmitry Ermolenko, who
expects more benefits from cooperation with the OVS. In
Ukraine, four former Peacocks stores together with 20 ones in
Russia will work under the signboard of OVS.
Based on COMMERSANT.UA report
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3. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
UKRAINE IS CAPABLE OF INVESTING ABROAD
Due to its financial capability Ukraine is not only able to at-
tract foreign investment but also is ready to contribute into
the foreign projects. The vivid example of it has become the
fact of Victoria Tigipko’s Fund which has invested in startup
Urbanara, engaged in textile sales.
A group of international investors, including Blumberg Capital
and Brain-to-Ventures, have invested in a startup Urbanara 3,5
million euros as a result of the investment round A. It is men-
tioned in the official report of fund.
Project Urbanara is an online service for the sale of home tex-
tiles and home accessories. As It has been explained by the
executive Director of Victoria Tigipko’s fund, the ability to
attract investors to the project to the business scaling within
limited time (on the markets of Germany, Austria and the UK).
According to her, Ukrainian suppliers will also be able to work
with the project.
As the Executive Director of the Project Benjamin Esser point-
ed out, customers from Ukraine will be able to order products
in the next 2-3 months, and at the beginning of the next year
Russian version of the site will be launched. expected to expand to other European countries.
The project started in February 2011 in Germany and Austria. Such Ukrainian investment is likely to provide Ukrainian manu-
At present, the project has more than 800 lots of goods re- facturers with the support in their “conquest” of foreign mar-
ceived from 20 countries worldwide. During the first year of kets.
service handled more than 10 thousand orders. Services are
available in Germany, Austria and Great Britain, they are also Source: AIN.UA
THE TURNOVER OF THE ELECTRONIC COMMERCE
IN UKRAINE COULD REACH $3-4 BILLIONS IN 2012
kinds of children’s goods). The online books selling cannot be
included into the rapidly growing segment. “Ukrainian Ozon
does not exist yet, although a lot of companies once claimed
to be in his place, like Petrivka and Yakaboo” – said an expert.
In total, according to the expert’s rough estimates, Uanet has
about 250-300 Internet projects on online selling, operating
and profitable. “The others are somehow trying to survive. The
amount of such projects is about 2-2.5 thousand” – said Dmitry
Lappo.
Knigs.biz.ua is a leader in business literature of online selling.
According to the editorial office the nearest competitors are
Olmaxbooks.com and Bookzone.com.ua
Should be reminded, that the assessment of the market is simi-
The turnover of the Ukrainian internet shops in the past year lar to the estimates of other experts. Thus, according to the
totalled over $2 billion, and it can be close to $3-4 billions in head of Internet Investor Alexander Olshansky, the volume of
2012. This forecast was announced to the AIN correspondent cashless payments in Uanet is $200 million a year and in 2011
by Dmitry Lappo, the managing partner of the business litera- it increased almost a half. And this is just a small part of all the
ture of online-store kniga.biz.ua. sales that Ukrainian online stores have: they are paid mostly in
cash on delivery.
According to him, the most rapidly growing segments in Uanet
online commerce is clothing, footwear and toys (generally, all Source: AIN.UA
UKRAINE: THE COUNTRY FALLING INTO THE RANKING
OF COUNTRIES WITH NO UNEMPLOYMENT
The market for international services, distance selling and mail vealed nine world countries, where employment is no less
order should pay attention to Ukraine. than 95%, i.e. complete. Ukraine is among those countries,
FINANCES bigmir.net reported. The majority of countries
As a result of studies the international agency Gallup re- with full employment are in Asia, the rest are in Central and
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4. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
Eastern Europe.
The rating was made with taking into consideration the
amount of their GDPs, income per capita and a percentage of
full-time workers. As it appeared, only several countries out of
those nine countries may boast of really sound economic situa-
tion. The rest either raise the employment level at the expense
of temporary public works or has a large amount of low-profit
economies.
Therefore, a low unemployment level does not obligatorily ac-
company the strong economy. Thus, Ukraine cannot boast of
high GDP indexes and a considerable per capita income. In
2009, the country’s GDP reduced by 14.8% and it has slightly
grown only during recent years.
The CIA agency reports that a great number of unregistered
workers and part-time workers are revealed in Ukraine. Nev-
ertheless, according to Gallup studies, over 50% of Ukrainians
are full-time workers.
FINANCES bigmir.net report
UKRAINE’S HIGHER EDUCATION TOPS RANKING
IN EASTERN EUROPE
Ukraine ranked higher than any other Eastern European coun- The researchers ascertained the United States of America,
try in the Nation Higher Education Systems rating developed Sweden, Canada, Finland and Denmark to be the top five
by Universitas 21, the international research network of 24 uni- countries in the overall education rating.
versities and colleges.
The researchers analyzed the most recent data from 48 coun-
Ukraine occupied the 25th position out of 48 evaluated coun- tries and it was examined according to 20 different criteria to
tries. Czech Republic, Poland, Slovenia, Russia and Slovakia find countries best at providing higher education.
placed at positions 26, 27, 28, 32, and 35, respectively.
Based on LIGA.NET report
“UKRPOSHTA” PROMISES TO KEEP RATES
UNCHANGED FOR 2 YEARS
State mail service enterprise “Ukrposhta” doesn’t plan to
change its rates for basic postal services in 2012-2013. As it
was reported to the journalists by the General Director Oksana
Plotnikova, states “Interfax-Ukraine”.
According to its authorities, the company can increase revenue
by providing better services to the public, as well as develop-
ing a range of services already existing at present.
Source: Interfax-Ukraine
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5. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
UADM SPECIAL
ABILITY TO REMOTELY MANAGE MAIL ORDER
BUSINESS IS AN IMPORTANT FACTOR
FOR THE COMPANIES’ SUCCESS
IN UKRAINE
No matter how paradoxical it may sound, but in the period
of crisis (2009 - 2011) the market of mail orders in Ukraine
doubled.
It was developing not only due to the growth of increased
volumes of already working players on the market but also due
to arrival of new operators from Europe.
Recently, Western companies more and more frequently con-
sider starting their business on the Ukrainian market. The rea-
sons for this are clear: long-distance and unsaturation retail,
full infrastructure (logistics, contact centers, lettershops and
fulfilment, payment system) prepossessing features of the
mentality of consumption, effective channels of recruitment,
and consumer generated media market, the legislative regula-
tion of transparent playing field for market.
The main advantage that makes Ukraine to a certain extent
unique is a possibility to organize the shipment of goods from
the central office in Europe under the scheme of consignment
(shipment worth up to EUR 300 are exempt from taxes and
customs duties, and most of the goods do not require certifi-
cation) and remotely manage all business processes (without
opening a representative office), thanks to reliable partners.
Companies such as Bon prix, Yves Rocher, WITT, Cellbes, etc.
have already started operating under the following scheme.
In the earlier editions of the digest, we have described the
detailed features of the logistic component of the work on
consignment, but the purpose of this article is to provide a Partner in Ukraine on behalf of a client may organize and carry
comprehensive picture of the remote control to the business out a full cycle of the processes necessary for successful busi-
of distance selling in Ukraine. ness in Ukraine.
Financial Contact Lettershop
Consulting Management Marketing
operations Center and fulfillment
Customization
Business Operational Adaptation Refund Customer
and
plans management of promotional to the service
personalization
development of the project materials consumer organization
items
Receiving
Market Interaction with Monitoring of Payment
and processing Self-mailer
observations third parties competitors to third parties
orders
Communication Analytical Taxation Mailing
Legal Claims
with state data and business lists
advice processing
organs collection model organization
Import and
Certificates Media, Client's and Completion
customs
and planning CRM-systems and shipment
registration
approval and buying work of parcels
of materials
SMM
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6. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
We would like to attract your attention to several details worth mentioning:
1. Consulting 4. Financial transactions
The successful start of company It is difficult for a non-resident from a
depends on the properly elaborat- legal point of view to carry out finan-
ed strategy of its appearance and cial transactions (such as a refund to
brand positioning on the market. As the consumer). It is rather expensive
Ukraine is rather a peculiar country, to implement B2C payments directly
so it is pretty hazardous to blindly from Europe. Partner in the country
copy other markets conceptions of will be able to systematically serve
work without preliminary adaptation. customers (processing all complaints
Mentality of Ukrainians, which great- from consumers as well as from in-
ly influences the consumer consump- spection bodies) and to adjust the
tion, is something mingled between cash flows in Ukraine within the re-
the image of the Eastern European quired timeframe.
consumer (for example, Polish) and
the Russian one. For this reason it is
important for a partner to be able to 5. Customer Service Center
prepare the high-quality review of
market, define the image of a con- What makes the Ukrainian market so
sumer, study what and why he (con- peculiar is the fact that about 60% of
sumer) wants to buy. And last but orders made through the website,
not the least, it is essential that the are accompanied by calls. Ukrainian
company process all the documents people still do not have a sufficient
in obedience to the requirements of level of trust in online services and
the Ukrainian legislation. are looking for human contact. That
is why the contact center remains
to be still an indispensable tool for
2. Management communicating with customers. Due
to a clear prediction of load lines, the
A high-quality management is a head standardization of all processes and
stone in distance-selling business. system work with operators taking
Clear planning of tasks, their proper implementation, minimi- calls, it is possible to minimize the cost of contact center.
zation of risks, wrong steps in marketing and service of con- Taking calls, operators in terminal access put in the informa-
sumers, due to the experience of the Ukrainian partners, will tion into the CRM-system and then they are able to inform
enable to considerably minimize the expenses on realization the consumer on-line about the product availability and ap-
of the whole project. It is of special significance to point out proximate time of delivery. It is vitally important to remem-
such features like, for example, the ability to co-operate with ber that the service center is the face of the company in
state organs by enterprises, what foreign companies find dif- Ukraine, and the quality of its operators impacts the client’s
ficult to deal with, even at the working associated company experience of working with the company.
in Ukraine. What could really help to avoid such difficulties is
the working out mechanisms of partners already functioning
in this sphere for a long time. 6. Lettershop&fulfillment
With its own manufacturing facility Lettershop & fulfillment,
3. Marketing a partner company in Ukraine is able to offer good quality
services: customization and personalization of items, organ-
One more important factor of success on the market (apart izing mailings, self-mailer and equipment of parcels. When
from the presence of the entire necessary infrastructure men- choosing a partner it is necessary to pay attention rather to
tioned above) is the choice of vector of marketing policy on experience of the successful organization of large-circulation
the market. In Ukraine all standard methods of recruitment of stamps and mail shipments within the given timeframe
function well but the years of crisis had a good impetus for than price.
companies, attracting their attention to various kinds of part-
nership programs that can be arranged at minimal cost. Having If all of these above mentioned services can be realized by
a partner who could make a base platform for the implemen- one partner company by means of the combination of its re-
tation of cross-project, is highly important from the standpoint sources, doing business remotely becomes less costly in terms
of the safe use of personal data. of time and money.
Source: Pavlenko Yuliya, Ukrainian Direct Marketing Association.
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7. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
ONLINE TRADE IN UKRAINE BECOMES EASIER WITH
“MEEST EXPRESS”
According to Ukrainian Direct Marketing Association research,
the national postal and logistics group “Meest Express” was a
leader in express mail delivery in “from door to door” format
of year 2010. The rapid development of distance selling mar-
ket in 2011 helped to strengthen the competitive position of
the company and reach new market segments. Assessing the
high standards of service “Mist Express”, this year onto the
Ukrainian market came a number of large European distance
trade companies.
The uniqueness of the company’s services lies in simplicity of
ordering services. And at the same time, “Meest Express” pro-
vides customers with “to be a member of” the whole process
of delivering items: to track the movement of origin, receive
text-messages about the status of the parcel, prepare the nec-
essary documents to the client’s workplace, have the ability to
integrate software and client software service delivery.
Major players in the market of logistic transportation are in the
zone of constant competition, trying to keep the price level
acceptable to the customer’s competitive level. Fierce compe-
tition keeps and improves the quality of basic operators.
The development of new market segments do not need deliv-
ery services any longer (and so it is an objective reality ). What
it really lacks is new kinds of services that are becoming more
popular thanks to online trading and are not specific to other (if the recipient was not home), as well as online order tracking
industries. Another thing is the ability of companies to provide site, convenience and affordability of communication with the
the appropriate package and level of services. That willingness courier in order to understand all the nuances.
to do so forms a demand for a particular service - delivery.
In 2012, “Meest Express” plans to introduce to the market
Online stores, in cooperation with “Meest Express” are easy to a range of innovative services for information and customer
produce documents accompanying secure and reliable deliv- service program and method of delivery of items, namely
ery, as well as the ability to integrate their own software and the deployment of a network of automatic e-mail terminals
software delivery service. Customers of Internet products, who (Pachkomativ). The main feature of market leadership is the
are interested in the speed of delivery and adaptation to their ability to quickly adapt to its needs and ability to grow in
individual needs, ease of production and constant information new segments. So far, the development of remote com-
on the status (location) of the order, get the whole package merce (including e-commerce) is one of the priorities of the
of services that meet their expectations. This delivery during company.
off-hours and pre-dial to customers with the specification of
the time and place of delivery, and a number of free delivery Viktor Kuchma
attempts, and the message of an unsuccessful delivery attempt Chairman of the “Trading House” Meest Express” Directors Board
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8. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
LEGISLATION NEWS
STARTUPS IN UKRAINE CAN BE GIVEN THE GREEN
LIGHT: PRESIDENT YANUKOVYCH WANTS TO REDUCE
THE NUMBER OF ALLOWING CHARACTER DOCUMENTS
the President for approval by the Verkhovna Rada.
Startups can also expect bureaucratic machines to work on-
line. The prime minister, Mykola Azarov, following the instruc-
tions of the President, must now ensure the completion and
implementation of electronic registration of legal entities and
natural persons - entrepreneurs.
To satisfy those, planning to open or grow their start-up in
Ukraine, the head of government also charged with approval
of an exhaustive list of document forms of a strict accounting,
marketed to consumers in the provision of administrative ser-
vices, and representation in the established order to Verkhov-
na Rada a draft law amending to some legislative acts concern-
ing the establishment of requirements for the production of
blank documents rigorous accounting, marketed to consumers
in the provision of administrative services solely on the state-
owned enterprises administered by the Ministry of Finance, on-
Startups in Ukraine will soon be easier to communicate with Banknote Mint of the National Bank of Ukraine.
the authorities and licensing authorities. At the very least, the
President of Ukraine Viktor Yanukovych instructed Prime Min- The good news for preparing one’s start-up in Ukraine, is the
ister Mykola Azarov to provide a reduction in the number of fact that the Prime Minister must also ensure that the Cabinet
allowing character documents up to no less than 70%. will consider the question of the status of implementation of
the activities of the National Action Plan for 2012 on the intro-
Appropriate instruction head of the state placed on his official duction of economic reform program for 2010-2014, the “Rich
website. society, competitive economy, effective state, “approved by
the Decree of President of Ukraine of March 12, 2012, and on
With the following aim, the head of the government was sup- the consideration of proposals to strengthen the staffing of
posed to report to Mr. Yanukovych on the process of develop- the central executive authorities and to take steps to improve
ment and presentation of a draft law on amendments to the the performance discipline in the executive branch.
Law “On the list of allowing character documents in the area
of economic activity” and other legislative acts suggested by Based on UNIAN materials
UKRAINE REDUCES PAPER BUREAUCRACY AND MAKES
LIFE EASIER FOR ENTREPRENEURS
Ukraine reduces paper bureaucracy and makes life easier for
entrepreneurs – through the Internet. Really vital reforms for
domestic and external business in Ukraine are being imple-
mented in several directions simultaneously: the soviet legacy
is systematically beaten by modern technologies. Nowadays
it’s a matter of taxation and land trade.
For the first quarter of this year the number of taxpayers, who
started the use of the electronic reporting, increased by 3%.
As reported in the press-service of the State tax service of
Ukraine, at the beginning of the year in the electronic form
of Declaration on VAT sent for 91.3% of the payers, today this
figure is more than 94%.
It says in the statement, that in comparison with the previous
year, the number of such reporting has grown twice. In April
2011 on the Internet accounted for only 45% of the taxpayers.
Tax Professionals note that such kind of statements finds its reports from 341,5 thousand taxpayers. For the year 2011 322
new supporters, because it considerably saves time and ex- thousand of payers sent 17.1 million records.
penses on the purchase of forms, and also allows you to avoid
queues in tax inspections in the peak days statements. At the same time the State agency on land resources of
Ukraine is planning to start online land registration document
In total for January-April of the current year made 30.7 million turnover.
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9. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
According to the head of the department Serhiy Tymchenko, Each of these examples of Ukraine’s modernization can serve
citizens can follow the processing of their documents online as proof of country’s direct steps to European and world
on the website of the agency. standards of doing business online.
“Such automatization of the process helps improving the sys- Source: FINANCE.UA
tem of the state agency on land resources, and in my opinion
helps to reduce corruption,” summed up Tymchenko.
UKRAINIAN STATE CUSTOMS SERVICE HAS STARTED
ISSUING FREE ELECTRONIC SIGNATURE KEYS
Ukraine is going to be closer to the Service has started providing customs
rest of Europe – because the shipment brokers and foreign economic market
processing will be easier and faster. players with electronic digital signature
Ukrainian State Customs Service im- keys in order to execute a cabinet reso-
plements world practice in order to lution,” its press service reported on
reduce the paper work with goods May 8, 2012.
crossing the country’s border. The
electronic digital signature keys are is- Electronic digital signature keys can be
sued to customs brokers to sign docu- obtained at the electronic key certifica-
ments required for customs clearance. tion center at 28A, Svitlytskoho Street in
Kyiv.
“Since May 3, 2012 the key certifi-
cation center of the State Customs Based on the FINANCE.UA report
NO ELECTRONIC GADGETS SHIPMENT FROM THE US
BY THE END OF THE YEAR FOR UKRAINIANS
Since May 16 the U.S. Postal Service (“USPS”) all outbound
international shipment of lithium batteries via USPS has been
prohibited. This innovation opens new possibilities for mail or-
der in Ukraine.
But the ban, implemented by the International Civil Aviation
Organization and the Universal Postal Union, may not be per-
manent.
As USPS officials have informed the customers: by January 1,
2013, small shipments of electronics with lithium batteries may
be able to be sent overseas.
Source: AIN.UA
INTERNET NEWS
INTERNET MARKET IN UKRAINE IS GROWING.
UKRAINIANS REGISTER 650,000 NAMES IN .UA DOMAIN
The most popular public domain com.ua has almost 250,000 April 1, 2012). Domen.UA was registered in December 1992 by
names. In April the total number of domain names in the .UA Dmitry Kohmanyuk and Igor Sviridov, now it is run under the
domain reached 650,900, an increase over the same period actual administration of the company “Hostmaster”.
last year by 15.6%, Hostmaster told proIT.
At the same time the number of second level domain names
was 13.6 million (growth of 19.9%).
The most popular public domain com.ua has almost 250,000
names (17%). Among geographic domains, the most popular
domain is the capital’s domain kiev.ua, which numbers 53,890
names (8.7%).
Registration services in the domains .UA, com.ua, kiev.ua are
provided by 182 registrars. A market share is controlled by five
major registrars, with 52.41% (0.42 percentage points to the Based on the proIT report
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10. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012
ANNOUNCE
UKRAINE IS READY FOR EURO 2012
AND ARSENALE 2012
Ukraine is a country of easily breaking stereotypes. Especially
in the case of grandiose project hosting: like Euro 2012 or AR-
SENALE 2012.
Despite all sad forecasts concerning Ukraine’s capability to
hold Continental football championship, EURO 2012 co-host
Ukraine is ready to welcome thousands of football fans, after
years of work to revamp and build match venues as well as
upgrade vital air, road and rail infrastructure.
Four venues in Ukraine are hosting 12 Group B and Group D
matches in Lviv, Donetsk, Kharkiv and Kyiv as well as two quar-
terfinals and a semi-final before the final at the Olympic Sta-
dium in the capital, Kyiv, on July 1.
Despite controversial political news from Ukraine, the Union of
European Football Associations President Michel Platini called
“extraordinary” the progress made by Ukraine in preparing the
football cup.
Ukraine has bought a number of high-speed trains from South
Korea to improve rail services.
Ukraine’s biggest and most up-to-date airports were mod-
ernized in the four host cities for EURO 2012: Kyiv, Kharkiv,
Donetsk, and Lviv.
Along with new airports, Ukraine has built and modernized
four football stadiums. Kyiv’s Olimpiyskyi, second largest
stadium in Eastern Europe, can host up to 70,050 fans. The
newly built Arena Lviv was named “the most comfortable sta-
dium for fans among EURO 2012 venues” by UEFA officials.
Kharkiv’s Metalist became known as a “spider”: the roof of
the stadium is supported by 24 towers resembling the ten-
tacles of a spider. Thanks to massive support the roof can
withstand an earthquake with a magnitude of 8.0. Opened
in 2009, Donetsk’s Donbass Arena became known as the first
elite stadium in Eastern Europe. Ukrainian stadiums of the
EURO 2012 football championship are ready to ensure safety
to the highest level.
The Emir of Qatar, Hamad bin Khalifa Al Thani, will visit
Ukraine during the finals of the 2012 UEFA European Football
Championship. In particular, he is planning to inspect person-
ally the stadiums during EURO 2012 so as to invite Ukrainian
companies with experience in building sports facilities for the
championship to participate in tenders for the construction
of stadiums in Qatar within preparations for the World Cup
in 2022.
The host cities Kyiv and Lviv are all popular tourist destinations,
unlike Donetsk and Kharkiv - but they can become the tourist
discoveries of EURO 2012.
Besides Euro 2012 one more important event is to take place
in the artistic life. It is the First Kyiv international biennale ARSE-
NALE 2012 to take place from May 24th to July 31st.
Mystetskyi Arsenal (Art Arsenal) is one of Ukraine’s most prom-
ising projects in the field of culture and has a fair chance of
becoming one of the world’s largest museums.
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