Udma digest 8th issue

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Udma digest 8th issue

  1. 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 borderHOT A new Customs Code has entered into force since June 1. To learn more read the article on the next page.
  2. 2. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012UKRAINE AND EU APPROVE CUSTOMSCOOPERATION STRATEGYKyiv, May 25, 2012. Ukraine and the EU reached a political agree-ment on joint cooperation strategy regarding customs. Amongother issues, the cooperation will promote information exchangeand introduce efficient countering of customs violations.The decision ensued from the meeting of the First Vice PrimeMinister 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 bilateraltrade relations and help protect the citizens of both partiesagainst customs fraud. The draft of the document was firstsubmitted to the EU in July of 2011.The strategy includes four components: reform of customscontrol, 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 wellThe 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 alsoinfrastructure), introduction of the effective analysis of customs provides a catalogue of items, which are considered personalviolations 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 goodsThe State Customs Service is responsible for the implementation transferred (sent) are not due to taxing if their invoice value is notof the customs-related part of the Agenda. One of the practical more than equivalent of 300 Euro which is 100 Euro more than itachievements in the field has been the delegation of the right to was previously allowed. Mostly this new Code is alike its Europeanissue EUR.1 movement certificate to the State Customs Service. analogs, because during its creation the perspective for attractingThe 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 CustomsAs part of Ukraine’s efforts to implement international stand- Code the terms of the goods to cross the border will considerablyards, 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 EuroCode 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 helpAmong the most valuable innovations, introduced by the code, stimulate foreign economic activity and increase trade volumeis 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.UAA NEW BRAND WILL APPEAR ON THEUKRAINIAN 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 reportFRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 2
  3. 3. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012UKRAINE IS CAPABLE OF INVESTING ABROADDue to its financial capability Ukraine is not only able to at-tract foreign investment but also is ready to contribute intothe foreign projects. The vivid example of it has become thefact of Victoria Tigipko’s Fund which has invested in startupUrbanara, engaged in textile sales.A group of international investors, including Blumberg Capitaland Brain-to-Ventures, have invested in a startup Urbanara 3,5million 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 theexecutive Director of Victoria Tigipko’s fund, the ability toattract investors to the project to the business scaling withinlimited time (on the markets of Germany, Austria and the UK).According to her, Ukrainian suppliers will also be able to workwith the project.As the Executive Director of the Project Benjamin Esser point-ed out, customers from Ukraine will be able to order productsin the next 2-3 months, and at the beginning of the next yearRussian 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 areavailable in Germany, Austria and Great Britain, they are also Source: AIN.UATHE TURNOVER OF THE ELECTRONIC COMMERCEIN 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 thetotalled over $2 billion, and it can be close to $3-4 billions in head of Internet Investor Alexander Olshansky, the volume of2012. This forecast was announced to the AIN correspondent cashless payments in Uanet is $200 million a year and in 2011by Dmitry Lappo, the managing partner of the business litera- it increased almost a half. And this is just a small part of all theture 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 Uanetonline commerce is clothing, footwear and toys (generally, all Source: AIN.UAUKRAINE: THE COUNTRY FALLING INTO THE RANKINGOF COUNTRIES WITH NO UNEMPLOYMENTThe market for international services, distance selling and mail vealed nine world countries, where employment is no lessorder should pay attention to Ukraine. than 95%, i.e. complete. Ukraine is among those countries, FINANCES bigmir.net reported. The majority of countriesAs a result of studies the international agency Gallup re- with full employment are in Asia, the rest are in Central andFRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 3
  4. 4. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012Eastern Europe.The rating was made with taking into consideration theamount of their GDPs, income per capita and a percentage offull-time workers. As it appeared, only several countries out ofthose nine countries may boast of really sound economic situa-tion. The rest either raise the employment level at the expenseof temporary public works or has a large amount of low-profiteconomies.Therefore, a low unemployment level does not obligatorily ac-company the strong economy. Thus, Ukraine cannot boast ofhigh GDP indexes and a considerable per capita income. In2009, the country’s GDP reduced by 14.8% and it has slightlygrown only during recent years.The CIA agency reports that a great number of unregisteredworkers and part-time workers are revealed in Ukraine. Nev-ertheless, according to Gallup studies, over 50% of Ukrainiansare full-time workers.FINANCES bigmir.net reportUKRAINE’S HIGHER EDUCATION TOPS RANKINGIN EASTERN EUROPEUkraine 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 fiveby 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 totries. 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 RATESUNCHANGED FOR 2 YEARSState mail service enterprise “Ukrposhta” doesn’t plan tochange its rates for basic postal services in 2012-2013. As itwas reported to the journalists by the General Director OksanaPlotnikova, states “Interfax-Ukraine”.According to its authorities, the company can increase revenueby providing better services to the public, as well as develop-ing a range of services already existing at present.Source: Interfax-UkraineFRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 4
  5. 5. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012UADM SPECIALABILITY TO REMOTELY MANAGE MAIL ORDERBUSINESS IS AN IMPORTANT FACTORFOR THE COMPANIES’ SUCCESSIN UKRAINENo matter how paradoxical it may sound, but in the periodof crisis (2009 - 2011) the market of mail orders in Ukrainedoubled.It was developing not only due to the growth of increasedvolumes of already working players on the market but also dueto 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 andfulfilment, payment system) prepossessing features of thementality 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 extentunique is a possibility to organize the shipment of goods fromthe central office in Europe under the scheme of consignment(shipment worth up to EUR 300 are exempt from taxes andcustoms duties, and most of the goods do not require certifi-cation) and remotely manage all business processes (withoutopening 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 thedetailed features of the logistic component of the work onconsignment, but the purpose of this article is to provide a Partner in Ukraine on behalf of a client may organize and carrycomprehensive 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, Clients and Completion customs and planning CRM-systems and shipment registration approval and buying work of parcels of materials SMMFRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 5
  6. 6. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012We would like to attract your attention to several details worth mentioning:1. Consulting 4. Financial transactionsThe successful start of company It is difficult for a non-resident from adepends on the properly elaborat- legal point of view to carry out finan-ed strategy of its appearance and cial transactions (such as a refund tobrand positioning on the market. As the consumer). It is rather expensiveUkraine is rather a peculiar country, to implement B2C payments directlyso it is pretty hazardous to blindly from Europe. Partner in the countrycopy other markets conceptions of will be able to systematically servework without preliminary adaptation. customers (processing all complaintsMentality of Ukrainians, which great- from consumers as well as from in-ly influences the consumer consump- spection bodies) and to adjust thetion, is something mingled between cash flows in Ukraine within the re-the image of the Eastern European quired timeframe.consumer (for example, Polish) andthe Russian one. For this reason it isimportant for a partner to be able to 5. Customer Service Centerprepare the high-quality review ofmarket, define the image of a con- What makes the Ukrainian market sosumer, study what and why he (con- peculiar is the fact that about 60% ofsumer) wants to buy. And last but orders made through the website,not the least, it is essential that the are accompanied by calls. Ukrainiancompany process all the documents people still do not have a sufficientin obedience to the requirements of level of trust in online services andthe Ukrainian legislation. are looking for human contact. That is why the contact center remains to be still an indispensable tool for2. Management communicating with customers. Due to a clear prediction of load lines, theA high-quality management is a head standardization of all processes andstone in distance-selling business. system work with operators takingClear 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 informenable 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 instate organs by enterprises, what foreign companies find dif- Ukraine, and the quality of its operators impacts the client’sficult 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 isthe working out mechanisms of partners already functioningin 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. Whenfrom the presence of the entire necessary infrastructure men- choosing a partner it is necessary to pay attention rather totioned above) is the choice of vector of marketing policy on experience of the successful organization of large-circulationthe market. In Ukraine all standard methods of recruitment of stamps and mail shipments within the given timeframefunction 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 bya 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 termsof the safe use of personal data. of time and money. Source: Pavlenko Yuliya, Ukrainian Direct Marketing Association.FRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 6
  7. 7. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012ONLINE TRADE IN UKRAINE BECOMES EASIER WITH“MEEST EXPRESS”According to Ukrainian Direct Marketing Association research,the national postal and logistics group “Meest Express” was aleader in express mail delivery in “from door to door” formatof year 2010. The rapid development of distance selling mar-ket in 2011 helped to strengthen the competitive position ofthe company and reach new market segments. Assessing thehigh standards of service “Mist Express”, this year onto theUkrainian market came a number of large European distancetrade companies.The uniqueness of the company’s services lies in simplicity ofordering services. And at the same time, “Meest Express” pro-vides customers with “to be a member of” the whole processof delivering items: to track the movement of origin, receivetext-messages about the status of the parcel, prepare the nec-essary documents to the client’s workplace, have the ability tointegrate software and client software service delivery.Major players in the market of logistic transportation are in thezone of constant competition, trying to keep the price levelacceptable 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 ). Whatit really lacks is new kinds of services that are becoming morepopular thanks to online trading and are not specific to other (if the recipient was not home), as well as online order trackingindustries. Another thing is the ability of companies to provide site, convenience and affordability of communication with thethe 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 marketOnline stores, in cooperation with “Meest Express” are easy to a range of innovative services for information and customerproduce documents accompanying secure and reliable deliv- service program and method of delivery of items, namelyery, as well as the ability to integrate their own software and the deployment of a network of automatic e-mail terminalssoftware delivery service. Customers of Internet products, who (Pachkomativ). The main feature of market leadership is theare interested in the speed of delivery and adaptation to their ability to quickly adapt to its needs and ability to grow inindividual 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 theof services that meet their expectations. This delivery during company.off-hours and pre-dial to customers with the specification ofthe time and place of delivery, and a number of free delivery Viktor Kuchmaattempts, and the message of an unsuccessful delivery attempt Chairman of the “Trading House” Meest Express” Directors BoardFRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 7
  8. 8. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012LEGISLATION NEWSSTARTUPS IN UKRAINE CAN BE GIVEN THE GREENLIGHT: PRESIDENT YANUKOVYCH WANTS TO REDUCETHE 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, thePresident of Ukraine Viktor Yanukovych instructed Prime Min- The good news for preparing one’s start-up in Ukraine, is theister Mykola Azarov to provide a reduction in the number of fact that the Prime Minister must also ensure that the Cabinetallowing 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 “Richwebsite. society, competitive economy, effective state, “approved by the Decree of President of Ukraine of March 12, 2012, and onWith the following aim, the head of the government was sup- the consideration of proposals to strengthen the staffing ofposed to report to Mr. Yanukovych on the process of develop- the central executive authorities and to take steps to improvement 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 areaof economic activity” and other legislative acts suggested by Based on UNIAN materialsUKRAINE REDUCES PAPER BUREAUCRACY AND MAKESLIFE EASIER FOR ENTREPRENEURSUkraine reduces paper bureaucracy and makes life easier forentrepreneurs – through the Internet. Really vital reforms fordomestic and external business in Ukraine are being imple-mented in several directions simultaneously: the soviet legacyis systematically beaten by modern technologies. Nowadaysit’s a matter of taxation and land trade.For the first quarter of this year the number of taxpayers, whostarted the use of the electronic reporting, increased by 3%.As reported in the press-service of the State tax service ofUkraine, at the beginning of the year in the electronic formof Declaration on VAT sent for 91.3% of the payers, today thisfigure is more than 94%.It says in the statement, that in comparison with the previousyear, the number of such reporting has grown twice. In April2011 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 322new 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 avoidqueues 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 documentIn total for January-April of the current year made 30.7 million turnover.FRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 8
  9. 9. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012According to the head of the department Serhiy Tymchenko, Each of these examples of Ukraine’s modernization can servecitizens can follow the processing of their documents online as proof of country’s direct steps to European and worldon the website of the agency. standards of doing business online.“Such automatization of the process helps improving the sys- Source: FINANCE.UAtem of the state agency on land resources, and in my opinionhelps to reduce corruption,” summed up Tymchenko.UKRAINIAN STATE CUSTOMS SERVICE HAS STARTEDISSUING FREE ELECTRONIC SIGNATURE KEYSUkraine is going to be closer to the Service has started providing customsrest of Europe – because the shipment brokers and foreign economic marketprocessing will be easier and faster. players with electronic digital signatureUkrainian State Customs Service im- keys in order to execute a cabinet reso-plements world practice in order to lution,” its press service reported onreduce the paper work with goods May 8, 2012.crossing the country’s border. Theelectronic digital signature keys are is- Electronic digital signature keys can besued 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 reportNO ELECTRONIC GADGETS SHIPMENT FROM THE USBY THE END OF THE YEAR FOR UKRAINIANSSince May 16 the U.S. Postal Service (“USPS”) all outboundinternational shipment of lithium batteries via USPS has beenprohibited. This innovation opens new possibilities for mail or-der in Ukraine.But the ban, implemented by the International Civil AviationOrganization 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 maybe able to be sent overseas.Source: AIN.UAINTERNET NEWSINTERNET MARKET IN UKRAINE IS GROWING.UKRAINIANS REGISTER 650,000 NAMES IN .UA DOMAINThe most popular public domain com.ua has almost 250,000 April 1, 2012). Domen.UA was registered in December 1992 bynames. In April the total number of domain names in the .UA Dmitry Kohmanyuk and Igor Sviridov, now it is run under thedomain 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 nameswas 13.6 million (growth of 19.9%).The most popular public domain com.ua has almost 250,000names (17%). Among geographic domains, the most populardomain is the capital’s domain kiev.ua, which numbers 53,890names (8.7%).Registration services in the domains .UA, com.ua, kiev.ua areprovided by 182 registrars. A market share is controlled by fivemajor registrars, with 52.41% (0.42 percentage points to the Based on the proIT reportFRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 9
  10. 10. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012ANNOUNCEUKRAINE IS READY FOR EURO 2012AND ARSENALE 2012Ukraine is a country of easily breaking stereotypes. Especiallyin the case of grandiose project hosting: like Euro 2012 or AR-SENALE 2012.Despite all sad forecasts concerning Ukraine’s capability tohold Continental football championship, EURO 2012 co-hostUkraine is ready to welcome thousands of football fans, afteryears of work to revamp and build match venues as well asupgrade vital air, road and rail infrastructure.Four venues in Ukraine are hosting 12 Group B and Group Dmatches 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 ofEuropean Football Associations President Michel Platini called“extraordinary” the progress made by Ukraine in preparing thefootball cup.Ukraine has bought a number of high-speed trains from SouthKorea 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 modernizedfour football stadiums. Kyiv’s Olimpiyskyi, second largeststadium in Eastern Europe, can host up to 70,050 fans. Thenewly 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 ofthe stadium is supported by 24 towers resembling the ten-tacles of a spider. Thanks to massive support the roof canwithstand an earthquake with a magnitude of 8.0. Openedin 2009, Donetsk’s Donbass Arena became known as the firstelite stadium in Eastern Europe. Ukrainian stadiums of theEURO 2012 football championship are ready to ensure safetyto the highest level.The Emir of Qatar, Hamad bin Khalifa Al Thani, will visitUkraine during the finals of the 2012 UEFA European FootballChampionship. In particular, he is planning to inspect person-ally the stadiums during EURO 2012 so as to invite Ukrainiancompanies with experience in building sports facilities for thechampionship to participate in tenders for the constructionof stadiums in Qatar within preparations for the World Cupin 2022.The host cities Kyiv and Lviv are all popular tourist destinations,unlike Donetsk and Kharkiv - but they can become the touristdiscoveries of EURO 2012.Besides Euro 2012 one more important event is to take placein 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 ofbecoming one of the world’s largest museums.FRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 10
  11. 11. CROSS-BORDER DISTANCE SELLING IN UKRAINE: INFO DIGEST May 2012 The mission of Mystetskyi Arsenal is to combine many Ukrain- taste: from arts specialists to curious EURO 2012 fans. Even ian cultural achievements and initiatives into one conceptual children are to meet unusual artefacts and to learn unbeliev- national project thus presenting the Ukrainian historical and able stories about contemporary art. artistic heritage as part of world cultural heritage. For further details relating to EURO 2012 or ARSENALE 2012, This year exhibition will comprise the works of about 100 art- please visit UKRAINE2012.GOV.UA or ARTARSENAL.IN.UA ists. A large scale and diverse excursion program to fit every Welcome to Ukraine and be our guest! SOON How Ukrainian Internet companies should handle the users’ personal data New penalties for violations of the personal data protection law are to enter into force in Ukraine in July 2012. If you want to decline or recommend digest Hot Line +380 (44) 495 7885CONTACT to your colleagues, please feel free to contact us by US distance_selling_in_UA@uadm.com.ua © UDMA, 2012 Follow us on Twitter: @DistanceSell_ua Follow us on Facebook: DistanceSellingInUA FRESH DISTANCE SELLING NEWS FOLLOW OUR PAGE ON 11

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