UNITED WORLD for USA TODAY
UNITED WORLD: UBG was established in 1997 and it comprises of 14 businesses. In 2005 after discovering several new business units it entered the market as the Ukrainian Business Group Corporation. What have been the biggest milestones and the greatest achievements of the Group so far?
MR. RUSLAN DEMCHAK: One of our latest achievements has been registering our own bank in 2007. When others were losing clients, we gained more. In 2009 we were ranked 134th out of 174 banks and this year we are number 69. Our strategy is to be one of the 50 largest banks in 3 years.
UNITED WORLD: You have succeeded by getting through the economic crisis and when others were losing their clients, you actually gained clients. What main strategies and competencies did UBG use at that time?
MR. RUSLAN DEMCHAK: The US is our role model because the US is a magnet for the best people of the world. We try to act as America would in the Ukrainian market. We have a program to attract the best teams. They come from other banks and businesses to work for the Corporation – it is some kind of business migration. We think that the biggest resource is human capital potential. We offer them more opportunities; we guarantee and provide the performance of such promises.
Just like the US, the UBG Corporation – it’s an idea that was drawn on the paper. The US idea was drawn in its Constitution, and the UBG idea – in its Corporate Code. If the idea is correct, it gives the opportunity to be successful.
UNITED WORLD: You aim to become one of the top 10 Ukrainian corporations within the next 10 years. What are your future strategic and expansion plans that will allow you to achieve this vision?
MR. RUSLAN DEMCHAK: The UBG Corporation has its Managing Company. It is a center of brainstorm, which optimizes our businesses and establishes new start-ups. Our Managing Company includes a quality control department so improvements are implemented regularly. There is an operating task program that increases the efficiency of management in many times. For example, during the board of directors, that lasts 3 hours, we consider up to 300 issues! We have individually developed motivation for each employee. In terms of our strategy, we are entering new markets in Ukraine – the IT, television and agriculture markets. We think that these sectors will be the most profitable and we support this strategy.
UNITED WORLD: What are the key drivers of growth for the business?
MR. RUSLAN DEMCHAK: The medical sector is a key driver. We have 6 clinics in operation and additionally we are planning to open children’s clinic before June 1st and we are also planning to open a clinic for adults (emergencies) this year.
UNITED WORLD: You really value your employees and offer very good compensation packages. You also engage in corporate social responsibility (CSR) a lot. What are the main areas of CSR that you engage in?
MR. RUSLAN DEMCHAK: We have a set of social programs that include motivation programs for our staff. We have financial and non-financial programs of motivation and the program of adaptation of employees. We have our own internal training center.
UNITED WORLD: We always like to ask about the relations between the US and Ukraine given that our report is for USA Today. As we know the Ministers for Foreign Affairs and Energy have recently secured $50 million for a nuclear energy program, and you just mentioned that you view the US as a role model. Do you have any further plans to target this market further and expand your presence there?
MR. RUSLAN DEMCHAK: We do not have ambitions to enter the American market in 2 to 3 years. We are focusing on Europe and this year we are going to open our first foreign delegation office in London. We have a strong IT processing company and we think we can also serve American banks with our IT services as well. We plan to enter the American market through the IT sector.
UNITED WORLD: On a personal note, thank you very much for your time. What have been your biggest contributions to the company and the industries you have been operating in?
MR. RUSLAN DEMCHAK: I think each person should decide what he is good at. I think I am professional at building structures and administrating them. I am a good manager and I am proud that the structure I have created is self-regulated and self-improving. It is working well. I want to add that on January 1st this year I passed the management process over to my substitute who is now President of the Corporation. I am now the head of the Federation of Employers of Kiev City and I think the time has come to promote cooperation between private and state companies. I think I can share my experience of successful management with other Ukrainian businesses.
UNITED WORLD: Thank you very much.
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понеділок, 30 травня 2011 р.
понеділок, 23 травня 2011 р.
Between Zone and Union
Ukrainian government, which was practicing “multidirectional international policy” for many years, for the first time faced the necessity to make a final choice: whether to sign the EU-Ukraine Free Trade Area Agreement (FTA) or to join the Customs Union of Russia, Belarus and Kazakhstan (CU)
The representatives of the official powers of Russia and the EU are claiming the same. For example, the European Commission chairman Jose Manuel Barroso stated that he considered Ukraine to be the part of the European nation’s family, without forgetting to mention the benefits of easier access to the EU market, with the capacity of 500 million potential consumers of Ukrainian goods, which could be lost in case of Ukraine’s joining the Customs Union, the same as the hopes for the mass attraction of foreign investments. In his turn, the President of RF Dmitriy Medvedev states about the raise of the custom duties’ rates and of increase of competition between Russian and Ukrainian economies, saying that by opening of the Ukrainian market for the EU goods, Ukraine subsequently would feel the uncompetitiveness of its commodity producers and would try to enter the CIS countries’ markets. We are already the competitors in the agriculture and metallurgy, but where there used to be cooperation (air-, shipbuilding, MIC), Russia will set up the parallel production and in the long run there will be even tougher competition.
Attempts to find the compromise formula ‘3+1’ i.e. without joining the CU, through the conclusion of the separate sectoral agreements, or separate free trade areas failed. However, it seems that the choice is already made and flirting with the CU only accelerated the negotiation process with Europe. Tired of ultimatums, Ukrainian authorities have strongly stated that the policy of European integration remained unchanged, and with its neighbors the country would communicate according to the WTO’s principles. Ukraine and the EU have settled the issues of the export of Ukrainian agricultural products, production of certain goods of protected titles (with the exception of 7 titles of alcohol), import of used cars. Until the end of the year the FTA agreement may be signed, it is confidently claimed by both sides.
At the same time on the 19th May in Minsk the updated agreement on free trade with the CIS countries (including the members of CU) prepared to replace the outdated treaty of 1994, failed to be signed. Project developed in accordance with the rules and regulations of WTO is expected to be signed in October.
The representatives of the official powers of Russia and the EU are claiming the same. For example, the European Commission chairman Jose Manuel Barroso stated that he considered Ukraine to be the part of the European nation’s family, without forgetting to mention the benefits of easier access to the EU market, with the capacity of 500 million potential consumers of Ukrainian goods, which could be lost in case of Ukraine’s joining the Customs Union, the same as the hopes for the mass attraction of foreign investments. In his turn, the President of RF Dmitriy Medvedev states about the raise of the custom duties’ rates and of increase of competition between Russian and Ukrainian economies, saying that by opening of the Ukrainian market for the EU goods, Ukraine subsequently would feel the uncompetitiveness of its commodity producers and would try to enter the CIS countries’ markets. We are already the competitors in the agriculture and metallurgy, but where there used to be cooperation (air-, shipbuilding, MIC), Russia will set up the parallel production and in the long run there will be even tougher competition.
Attempts to find the compromise formula ‘3+1’ i.e. without joining the CU, through the conclusion of the separate sectoral agreements, or separate free trade areas failed. However, it seems that the choice is already made and flirting with the CU only accelerated the negotiation process with Europe. Tired of ultimatums, Ukrainian authorities have strongly stated that the policy of European integration remained unchanged, and with its neighbors the country would communicate according to the WTO’s principles. Ukraine and the EU have settled the issues of the export of Ukrainian agricultural products, production of certain goods of protected titles (with the exception of 7 titles of alcohol), import of used cars. Until the end of the year the FTA agreement may be signed, it is confidently claimed by both sides.
At the same time on the 19th May in Minsk the updated agreement on free trade with the CIS countries (including the members of CU) prepared to replace the outdated treaty of 1994, failed to be signed. Project developed in accordance with the rules and regulations of WTO is expected to be signed in October.
четвер, 5 травня 2011 р.
What causes the spread of global inflation.
The U.S. Treasury Department officially announced that in early June, the country faces a technical default, if the Obama Administration and Congress are unable to agree on raising the public debt limit. Simply put, the country will be unable to service their obligations and did not have enough money to fund all necessary expenses.
As a result - may be closed some state institutions and arrested (or reduced) salaries of state employees, as well as social benefits. The ministry estimated that the maximum allowable amount of debt of $ 14.3 trillion. - will be reached as early as May 16 this year.
In just five quarters (from February 2010) The U.S.has already loaned $ 1.9 trillion. Since 2005, the total amount has almost doubled (from $ 7.6 to $ 14.3 trillion). As a result, every American has a debt before foreign lenders (mostly Chinese) and costs about $ 45,000.
The International Monetary Fund is concerned about the lack of a coherent in U.S. strategy to align costs and revenues.
That, with the increasing debt load (already 94% of GDP) and reducing the rate of economic growth (1, 8% in I quarter. 2011 against 3, 1% in the IV quarter of 2010.), according to experts surveyed by Reuters may lead to the debt crisis, like the Greek. Uncertainty about the future of America has forced the international rating agency Standard & Poor's downgraded credit rating from stable to negative.
According to IMF forecasts, by 2016 the U.S. will lose the status of the world's largest economy, losing the leadership to China. Actually, the experts were talking about it before, but specific dates were mentioned for the first time.
If the default would happen, then inevitably followed the devaluation of the dollar.
In contrast to the Russian ruble, which at the time of default in 1998, "dipped" by 75% (on 1 January 1999 the exchange rate fell three times), the American dollar - the currency of international settlements, and hence the consequences of this phenomenon will affect not only Americans.
As a result - may be closed some state institutions and arrested (or reduced) salaries of state employees, as well as social benefits. The ministry estimated that the maximum allowable amount of debt of $ 14.3 trillion. - will be reached as early as May 16 this year.
In just five quarters (from February 2010) The U.S.has already loaned $ 1.9 trillion. Since 2005, the total amount has almost doubled (from $ 7.6 to $ 14.3 trillion). As a result, every American has a debt before foreign lenders (mostly Chinese) and costs about $ 45,000.
The International Monetary Fund is concerned about the lack of a coherent in U.S. strategy to align costs and revenues.
That, with the increasing debt load (already 94% of GDP) and reducing the rate of economic growth (1, 8% in I quarter. 2011 against 3, 1% in the IV quarter of 2010.), according to experts surveyed by Reuters may lead to the debt crisis, like the Greek. Uncertainty about the future of America has forced the international rating agency Standard & Poor's downgraded credit rating from stable to negative.
According to IMF forecasts, by 2016 the U.S. will lose the status of the world's largest economy, losing the leadership to China. Actually, the experts were talking about it before, but specific dates were mentioned for the first time.
If the default would happen, then inevitably followed the devaluation of the dollar.
In contrast to the Russian ruble, which at the time of default in 1998, "dipped" by 75% (on 1 January 1999 the exchange rate fell three times), the American dollar - the currency of international settlements, and hence the consequences of this phenomenon will affect not only Americans.
понеділок, 18 квітня 2011 р.
Gold Rush
Why do investors keep buying the precious metal?
On April 5, 2011 at the New-York Mercantile Exchange and Commodity Exchange, Inc (COMEX) new historical record of the price on gold was made. Its price exceeded the mark of $1450 per troy ounce for the first time.
It is not a secret anymore that some economic crisis relief happened due to the doubtful achievement of Central Banks of many countries of the world, which solved the problems of financial institutions with its bad credits and toxic assets by the big amount of freshly printed Dollars, Euros and other monetary units. “Currency Wars” already caused first damages – the impetuous raise of the world prices on all real and material assets – metals, provisions, cotton and shares of enterprises. Consumer prices in the countries-members of the Organization of economic cooperation and development increased on 2,4% in February compared to the prices in February 2010, which became the biggest jump since October 2008.
Not to make guesses about which monetary unit will become devalued faster, investors maturely reasoned that it is better to invest into the eternal values: gold and silver. So it turns out that it is not the increase of price for assets, but it is a devaluation of money. Off course, there are fears that after significant raise the price on gold may drop dramatically, but for the main time we witness reverse processes.
Analysts are competing in the most precise predictions on the price for precious metal. For example, according to the international gold mining company AngloGold Ahsanti the price on gold will grow for $100 per year, reaching the price of $1500 per ounce in 2012, and $1600 at the end of 2012. And even George Soros, who was frightening the world with the growing “bubble” at the gold markets throughout 2010 year, was continuing to increase his investments into the precious metal during all this time.
Ukrainian banks offer gold bullion for purchase, and also there is a possibility to place “gold” deposit for 3-4% per annum. Against the background of prognoses on the rise in prices for gold for 7-8% per year, I consider such deposit to be a rather worthy instrument of saving personal capital.
On April 5, 2011 at the New-York Mercantile Exchange and Commodity Exchange, Inc (COMEX) new historical record of the price on gold was made. Its price exceeded the mark of $1450 per troy ounce for the first time.
It is not a secret anymore that some economic crisis relief happened due to the doubtful achievement of Central Banks of many countries of the world, which solved the problems of financial institutions with its bad credits and toxic assets by the big amount of freshly printed Dollars, Euros and other monetary units. “Currency Wars” already caused first damages – the impetuous raise of the world prices on all real and material assets – metals, provisions, cotton and shares of enterprises. Consumer prices in the countries-members of the Organization of economic cooperation and development increased on 2,4% in February compared to the prices in February 2010, which became the biggest jump since October 2008.
Not to make guesses about which monetary unit will become devalued faster, investors maturely reasoned that it is better to invest into the eternal values: gold and silver. So it turns out that it is not the increase of price for assets, but it is a devaluation of money. Off course, there are fears that after significant raise the price on gold may drop dramatically, but for the main time we witness reverse processes.
Analysts are competing in the most precise predictions on the price for precious metal. For example, according to the international gold mining company AngloGold Ahsanti the price on gold will grow for $100 per year, reaching the price of $1500 per ounce in 2012, and $1600 at the end of 2012. And even George Soros, who was frightening the world with the growing “bubble” at the gold markets throughout 2010 year, was continuing to increase his investments into the precious metal during all this time.
Ukrainian banks offer gold bullion for purchase, and also there is a possibility to place “gold” deposit for 3-4% per annum. Against the background of prognoses on the rise in prices for gold for 7-8% per year, I consider such deposit to be a rather worthy instrument of saving personal capital.
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