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Country Commercial Guides for FY 2000: Ukraine Report prepared by U.S. Embassy Kiev, Released July 1999 Note*

Chapter IX: Business Travel

A. Business Customs

Given the fact that "business" in a Western sense is something new to the current generation of Ukrainians, it is difficult to generalize as to proper protocol and customs for doing business in Ukraine. The legacy of centralized authority extending back for centuries, bureaucracy, red tape, and an unwillingness to take initiative have been imprinted on the developing Ukrainian business psyche. Signatures, proper letterhead, stamps of authenticity, and forms (in triplicate) are very important to "getting the job done" in Ukraine -- a process which can exercise the most experienced international businessperson. For example, a letter authorizing Mr. X to do Y will sometimes be rejected because it does not have "the proper stamp." Foreign companies will often stamp a document in English with an "official" seal, show the stamp to a customs officer or other bureaucrat (who likely cannot read English anyway), finding that this strategy is often successful.

Due to the general lack of knowledge about international business practices and terminology exhibited by most Ukrainians, it is important to take an educating role in business negotiations. Ukrainians can be shrewd and tough negotiators. It is important to be very responsive to one's negotiating partner, even regarding seemingly mindless issues. Visits to factories or other places of business activity in the U.S. can literally be the "picture worth a thousand words," as relatively few Ukrainians have been to the U.S.

The form of business in Ukraine often takes precedence over the substance, making a U.S. partner's approach all the more important. As noted above, given the absence of a strong, transparent legal infrastructure, your deal may in the end depend on the trust you have painstakingly built over many months or years. As Ukrainians are deeply personal, an extraordinary emphasis is placed on cementing personal relationships before doing business. Face-to-face meetings are the norm, with little business conducted over the phone. Business cards, printed in English and Ukrainian or Russian, are de rigueur, with a firm handshake to open and close a meeting. Long evenings of vodka toasts (moderation is advised) and several-course meals are important in building trust with your Ukrainian partner; wishing good health, happiness, and success on your partner's immediate family will be certain to bring a smile and a hearty "thank you." Remembering your Ukrainian partner's birthday, child's birthday, and keeping Ukrainian holidays (see subsection C, below) in mind will be gestures not soon forgotten.

B. Travel Advisory and Visas

All non-CIS citizens need a passport and Ukrainian visa to enter Ukraine. Visas can be obtained in advance from the Embassy of Ukraine, 3350 M Street, NW, Washington DC 20007; Tel: (202) 533-7507; Fax: (202) 333-0817; or at the Ukrainian Consulates General in Chicago (2247 W. Chicago Ave., Chicago, IL 60622; Tel: (312) 384-6632; Fax: (312) 384-6750) and New York (240 East 49th St., New York, NY 10017; Tel: (212) 371-5690; Fax: (212) 384- 6750). http://www.ukremb.com

A letter of invitation from a person, company, or organization in Ukraine (or a travel company voucher) is currently required to obtain a visa.

U.S. citizens cannot obtain visas at airports or border crossings. CS Kyiv strongly recommends that business travelers secure all documents prior to entering Ukraine. The duration of one's visa will be determined by the traveler's letter of invitation. To extend a visa, you must contact the Ministry of Foreign Affairs, Tel: (380-44) 226-3379. All foreigners visiting Ukraine, except those staying less than three working days and minors (under 18), are required to register their passports with local law enforcement authorities. This law is not uniformly enforced, but visitors who do not register may experience delays when leaving Ukraine, or difficulty when trying to extend visas. The registration requirement is automatically met when foreigners stay in hotels, when resident business persons register their businesses, or when students register under established exchange programs. Private visitors must have their hosts, relatives, or landlords register their U.S. passport at the local "Visas, Permits, and Passports Department" (VVIR) of the Ministry of Foreign Affairs. A fee is usually charged for visa extensions or passport registration.

Please note that business travelers who intend to visit Russia from Ukraine must have a valid Russian visa. The Consular Section of the Embassy of the Russian Federation in Ukraine is located at: 8 Prospect Kutuzova, Kyiv 252196, Ukraine; Tel: (38044) 294-6701; Fax: (380-44) 294-6516, 294-7936; hours: 9-5 p.m., M-W-F. The address of the Ukrainian Embassy in Moscow is: 18 Stanislavskaya St.; Tel: (095) 229-3422, 229-3442; Fax: (095) 229-3542.

Insurance:

In August 1998, the Ukrainian government issued a decree requiring that all foreign visitors obtain "emergency medical insurance" from the Ukrainian State Insurance Company. This insurance is not valid at private clinics, but reportedly allows foreigners to be treated in any state hospital without advance payment. Non-emergency service requires 24-hour notice in the form of a phone call to the State Insurance Company. "Emergency Medical Insurance" is currently available only at major international airports within Ukraine and at certain land border crossings. Fees for insurance range from 15 to several hundred dollars, depending on the length of stay. Fees are normally accepted in cash and are generally accepted only in U.S. dollars. Enforcement of this insurance requirement is not consistent. This has caused problems for American citizens who were not required to purchase insurance upon entering Ukraine, and subsequently had difficulty registering with the Office of Visas and Registration because they lacked proof of insurance. Many Americans have reported that they are being overcharged for this insurance. Therefore, Americans are advised to carefully review the fee schedule at the insurance booth and pay only the legally established fee.

U.S. medical insurance is not always valid outside of the United States. Those travelers carrying valid overseas insurance coverage are not exempt from the "emergency medical insurance" requirement by the Ukrainian government. Crime Information:

Crime in Ukraine is a growing problem. A number of racially motivated assaults and incidents of harassment have recently been reported. Westerners and their vehicles and residences are increasingly viewed as choice targets. Pickpocketing, robbery, and other petty crimes are a common occurrence on the mass transit system. There have been a number of documented reports of criminal acts occurring on trains, including gassings and robberies. Therefore, special care should be taken on subways, busses and trams. Economically-motivated crimes in Ukraine are on the rise, with foreigners frequently targeted by various criminal elements. The Embassy is aware of a common criminal approach: targets are spotted leaving Western restaurants and bars, then attacked once inside the doorway of their building, which is usually dark. Care should be taken to protect difficult-to-replace documents. Visitors should conduct themselves as they would in any major U.S. city -- always be aware of your surroundings, travel in pairs or groups, avoid poorly-lit or isolated areas of the city, and refrain from hailing rides from cars with two or more people already inside.

Consult the current Consular Information Sheet for Ukraine, prepared by the U.S. Department of State, for updates on the crime situation.

C. Holidays

Official 2000 Ukrainian holidays are as follows: January 1 New Year's Day January 7 Orthodox Christmas March 8 International Women's Day April 30 Orthodox Easter May 1-2 Labor Day May 9 Victory Day June 18-19 Holy Trinity Days June 28 Constitution Day August 24 Independence Day November 7-8 Revolution Days

According to recent amendments to the Ukrainian Labor Law, if a holiday falls on Saturday or Sunday, the day-off is transferred to the following Monday.

Ukrainian time is GMT+2 (Greenwich Mean Time) and EST+7 (Eastern Standard Time). The country observes daylight savings times from the last Sunday in March through the last Sunday in October.

D. Business Infrastructure

Accommodations:

There is a range of hotels in Kyiv, varying in price. The American Business Center can provide a listing of the most widely-used hotels in Kyiv, and in some of the other larger cities in Ukraine. Please check and confirm rates at your hotel prior to arrival. If preferred, various agencies in Ukraine can suggest apartment rentals on a daily, weekly, or monthly basis for business travelers. Please be advised that during the winter months heating may not be available in many hotels outside Kyiv. Hot water is generally available in hotels, but there are periods (two-six weeks during the summer) when the hot water pipes are turned off for cleaning and repairs. The standard electrical voltage throughout Ukraine is 220 volts, with continental (two-pronged) outlets. If traveling with U.S. electrical appliances, a plug adapter is necessary and, most likely, a converter as well (unless the appliance states otherwise). Travelers might also want to consider bringing a surge protector, especially for portable computers and other electronic devices.

Clothing:

Business attire in Ukraine is generally formal; for business, dress should be conservative. A suit or dress trouser with blazer and tie is suitable for men, while appropriate dress for women can extend from a suit to dress slacks and blazer. Outside the capital, dress is slightly more casual. In the cooler months, dressing for warmth dictates, especially in regions of Ukraine prone to heating shortages.

Communications:

Ukraine's local telecommunications system has made marked improvements over the last few years, particularly in international, cellular, and mobile communications. International calls can be made from Utel cardphones at a variety of points in Kyiv, including Boryspil Airport. To make long-distance calls from Ukraine, first dial 8, then wait for a new dial tone. International calls require dialing 10, followed by the country code, city code, and number. Ukraine's country code is 380; Kyiv's city code is 44.

Etiquette:

- do not shake hands across the threshold of a door (it is considered bad luck); - when shaking hands, take off your gloves; - be sure to have your business cards printed in Ukrainian on one side and English on the other side; - be prepared to accept all food and drink offered. Ukrainians are known for their generosity when it comes to food; turning down food may be considered rude; - if you bring flowers, make certain that it is an uneven number of flowers; - offer to share your cigarettes and snacks with those around you; - do not put your thumb between your first two fingers - this is a very rude gesture. Language: Ukrainian is the official state language of Ukraine. However, Russian is widely used in Kyiv and, especially, the cities of eastern Ukraine (to a much lesser extent in western Ukraine). The number of English speakers is growing yearly. Some useful Ukrainian vocabulary to remember is DOBRIY DEHN (hello, good day); DYA-KOO-YOU (thank you); BOOD LASKA (please/you're welcome). The American Business Center of The Commercial Service in Kyiv can suggest interpreters and translators. Medical: Bring prescriptions with you and avoid drinking tap water (bottled water is readily available in major hotels and supermarkets). Long-term visitors may wish to consider bringing a distiller -- not a filter -- for a constant supply of potable water. Short-term business travelers are unlikely to be affected by increasing reports of diphtheria and cholera; however, it is wise to make sure that all foods and utensils are thoroughly cleaned. Prior to travel, make sure proper immunizations are up-to-date. The American Business Center can provide business travelers with further health information for Ukraine.

Money: Ukraine is still primarily a cash economy. Traveler's checks and credit cards are gaining wider acceptance in larger cities. Credit cards are starting to be accepted at major hotels and Western-style restaurants. However, do not depend on using your credit card; bring adequate cash to cover incidental expenses. We recommend bringing bills in good condition and without tears or writing on them. Rumpled, torn, and written-on bills are usually not accepted. Official exchange points (called "obmin valyut") operate in most hotels and supermarkets. It is illegal to exchange money outside of exchange points, and we strongly discourage doing so.

Currency Regulations:

Customs regulations prohibit sending cash, traveler's checks, personal checks, credit cards, or passports through the international mail system to Ukraine. These items are regularly confiscated as contraband by customs authorities. Travelers must declare all cash and jewelry, regardless of value, upon entering Ukraine. Any undeclared items are subject to confiscation. Additionally, travelers should retain their customs forms, as they will be required to present these forms upon departure from Ukraine. Under customs regulations, travelers may bring up to $10,000 in cash into Ukraine without special permission; more than $ 10,000 requires a written statement by the traveler.

Radiation:

Radiation levels in Kyiv and most of Ukraine are considered safe and normal by the U.S. Embassy and other official bodies. Levels are measured daily.

Traffic Safety and Road Conditions:

Roads in Ukraine are in generally poor condition. Travel between cities at night and in winter can be particularly treacherous. Major roads are drivable during daylight hours. Roadside services, such as gas stations and repair facilities, exist but are inadequate. Travelers should plan accordingly. Additionally, carjackings of Western-made or foreign-registered vehicles is on the rise.

Ukraine is a zero tolerance country -- don't drink and drive!

Transportation: City transport in Kyiv is cheap, but crowded and slow at times. The Metro (subway/local train) is probably the quickest public transport method. Metro tokens can be purchased at individual stations; monthly passes at transportation kiosks. However, hailing a cab is probably the most efficient form of transportation within the city. Private cars can also be hired for a reasonable price but most drivers do not speak English. Be sure to agree on a price beforehand. It is becoming customary to order a taxi by phone. The most reliable and comfortable taxies can be ordered by dialing: 0-58, 234-4444 (yellow cabs), 574-0574 (blue or white cabs). Rent-a-car service. International trademarks Avis (Tel: 294-2104), Hertz (Tel: 296-7616), and Europcar (Tel: 274-9977) run their operations in Kyiv and Boryspil Airport. Train travel is the least expensive and most convenient method to reach just about any location in Ukraine. Trains are very slow, but generally safe. Air travel within Ukraine is often unreliable, with unpredictable schedules and service not on par with Western standards. Ukrainian domestic carriers operate Antovov-24 or Yakovlev-40 type aircraft, most of which have been in use for over 20 years. Due to very old air navigation equipment being operated by Ukrainian air traffic service, domestic flights are subject to prolonged delays, especially during bad weather. Direct air service between Ukrainian cities, other than from Kyiv, is unavailable.

The reconstruction of Boryspil Airport has made for a more traveler-friendly environment. However, plan for frustrating delays at passport and customs control points. The number of international airlines operating flights in and out of Kyiv is increasing. Austrian Airlines now has regular direct service between Vienna and Kyiv, Odesa, Dnipropetrovsk and Kharkiv. Of the U.S. carriers, Delta operates code-share flights with Ukraine International Airlines, Austrian Air and Swissair; United Airlines - with Lufthansa; and Nothwest -with KLM. Other major international airlines with regular service in Ukraine are: Air France, British Airways, Lufthansa, KLM, Finnair, Swissair, Malev, LOT, CSA, Turkish Airlines, Aeroflot, and Transaero.

U.S. business travelers are encouraged to obtain a copy of the "Key Officers of Foreign Service Posts: Guide for Business Representatives" available for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402; Tel: (202) 512-1800; Fax: (202) 512-2250.

Business travelers to Ukraine seeking appointments with the U.S. Embassy Kyiv officials should contact the Commercial Section in advance. The Commercial Section can be reached by telephone at (380-44) 417-2669, fax at (380-44) 417-1419, or email at kiev.office.box@mail.doc.gov