http://www.kyivpost.com/news/ News http://www.kyivpost.com/news/world/detail/127883/ World Fri, 18 May 2012 21:00:43 +0300
He replaces Germany's Thomas Mirow. Chakrabarti is currently a senior civil servant in Britain's Ministry of Justice.

The European Bank for Reconstruction and Development was created two decades ago to help eastern European economies after the collapse of communism.]]> http://www.kyivpost.com/news/nation/detail/127882/ Ukraine Fri, 18 May 2012 20:48:41 +0300
"Ukraine's economy has been affected by the new wave of instability in the eurozone," reads the bulletin. "Lower external demand and subdued steel prices led to a contraction of the machine building and steel sectors. Several significant public infrastructure investments related to the Euro 2012 football championship are now completed. Agricultural output also slowed down, affected by the unusually cold winter."

The EBRD notes that Ukraine's economy is very much exposed to the eurozone, and developments in the EU would remain an important factor for the country's growth and economic stability in the months to come.

The EBRD also says that the Ukrainian authorities have maintained a tight fiscal policy in anticipation of large external debt payments later this year, although the recently adopted package of social expenditures may increase fiscal pressures.

As was reported with reference to the State Statistics Service, Ukrainian GDP growth in the first quarter of 2012 compared to the same period of 2011 slowed down to 1.8% against 4.7% in the fourth quarter of 2011, 6.5% in the third quarter of 2011, 3.9% in the second quarter of 2011, and 5.4% in the first quarter of 2011.

Ukraine's GDP in 2011 was 69.3% of the GDP level registered in 1990, up from 65.8% in 2010, but it was still lower than 74.2% registered in the pre-crisis year of 2008. The Ukrainian government forecast 3.9% GDP growth while drafting the 2012 budget. At the same time, it predicts that GDP growth dynamics could hit 5-6% this year.]]> http://www.kyivpost.com/news/city/detail/127881/ City Fri, 18 May 2012 20:36:33 +0300
He also said that settlement of issues related to improvement of the city, as well as traffic and information policy issues are on the final stage.

"We will make everything possible and impossible to host Euro 2012," Popov said.]]> http://www.kyivpost.com/news/nation/detail/127880/ Ukraine Fri, 18 May 2012 20:19:58 +0300
At the same time the premier said the current law on elections gave great opportunities to public and political parties to oversee the election process.

"I think that under the present interest in these elections, the question of oversight will be resolved, since a great number of monitors are to come," Azarov said.

The premier also noted that the Russian experience of using of Web cameras showed that such an innovation didn't exclude claims of cheating being made against Russian government, and it was not a miracle cure.

As reported, the parliamentary elections in Ukraine will be held in the autumn of 2012.]]> http://www.kyivpost.com/news/euro2012/fan_guide/detail/127879/ Fan Guide Fri, 18 May 2012 20:08:44 +0300
At the same time, he noted that "in truth, it's now difficult to assess how many German citizens will visit Ukraine and attend matches."

Royamanech noted that the German national team is playing its group stage matches in Ukraine: two in Lviv and one in Kharkiv.

"Of course we also are expecting that the [German] national team will progress and will play more matches," he said.

As reported, German fans have bought all of the available tickets for the two matches of the German national team in Lviv. The tickets for Germany-Holland match in Kharkiv have almost sold out.

The German national team will play two matches in Lviv, against Portugal and Denmark, and one in Kharkiv against Holland in the Euro 2012 group stage.]]> http://www.kyivpost.com/news/euro2012/preparation/detail/127878/ Preparations Fri, 18 May 2012 19:58:33 +0300
Kyiv anti-drug police officers will continue to detain those who violate the anti-drug laws, the police said.]]> http://www.kyivpost.com/news/ukraine/detail/127877/ Ukraine abroad Fri, 18 May 2012 19:40:26 +0300 here]]> http://www.kyivpost.com/news/world/detail/127876/ World Fri, 18 May 2012 19:27:58 +0300
He said in Rome on Friday, May 18 that once afloat, the wreckage will be towed to an Italian port for demolition.

Thirty-two people perished when the Concordia slammed into a reef off Giglio on Jan. 13. The ship's captain is under house arrest while being investigated for alleged manslaughter and abandoning ship during evacuation.]]> http://www.kyivpost.com/news/nation/detail/127875/ Ukraine Fri, 18 May 2012 19:15:51 +0300
Arbuzov also said that the central bank has no grounds to expect a deeper devaluation of the hryvnia.

As reported, the NBU late in December 2011 forecast that the economy in 2012 would grow by 3-4% amid about 7% inflation, provided monetary policy stays unchanged and there are no significant external shocks.]]> http://www.kyivpost.com/news/russia/detail/127874/ Russia and former Soviet Union Fri, 18 May 2012 18:43:34 +0300
"There is no need for us to have tensions with Russia. We have always been and always will be one with Russia. There is simply no other way, neither for Russia, nor for us," Lukashenko said.

For his part, the St. Petersburg governor said: "I know that Russian President Vladimir Putin too understands that. No wonder he is planning the first foreign visit to your country. This too, in my view, shows the understanding and desire to build the policy accordingly," Poltavchenko said.

"The closer we cooperate, the more we shall trust one another and build our relations, the easier it will be for us to defend our common interests on the international arena," the governor said.]]> http://www.kyivpost.com/news/nation/detail/127873/ Ukraine Fri, 18 May 2012 18:29:47 +0300
According to the premier, the reason is not only one of custom - in addition, doctors and economists say the current system [five-day working week] is the most effective one.]]> http://www.kyivpost.com/news/politics/detail/127872/ Politics Fri, 18 May 2012 18:18:34 +0300
"The Ukrainian side is open - we don't have any secrets, [and] this is why we think that participation of qualified experts [European lawyers] will prevent there being speculation over this criminal case," he added.]]> http://www.kyivpost.com/news/russia/detail/127871/ Russia and former Soviet Union Fri, 18 May 2012 18:08:52 +0300
In the time remaining before Russia's WTO accession, Russia needs to analyze certain provisions effective in the framework of the Customs Union, particularly sanitary requirements, according to Yekaterina Mayorova, Deputy Director of the Department of Trade Negotiations.

"In the event of inconsistency, we must understand how to substantiate them at all from a scientific point of view," she added.

As regards cooperation within the Customs Union after Russia's accession to the WTO, a unique hierarchy of agreements with Russia has been created, where WTO agreements shall prevail over those of the Customs Union, Mayorova said.

"We shall automatically harmonize the Customs Union regulations with the multilateral trade rules. In my view, this scheme is temporary because at some point it will have to cease its existence if the Customs Union joins the WTO and has the relevant rights and liabilities. The current scheme will be more advantageous for businesses because it will allow both Kazakhstan and Belarus to comply with the basic WTO requirements," the official said.

The main legal challenge after Russia's WTO accession will be to apply efficiently the current laws and to prevent new regulations conflicting with the WTO being passed, said Dmitry Lyakishev, advisor at the Russian permanent mission in Geneva.

"Russia's accession to the WTO creates new opportunities to protect the interests of economic operators, but the scale and efficiency of their use will depend on all participants in the process," Lyakishev said.

Such new opportunities include access to dispute-resolution mechanisms, and the possibility of an administrative or judicial appeal against trade sanctions using the procedures provided by existing Russian laws and improved in line with the WTO rules, he said.

"Also an opportunity arises to challenge the national measures in a manner established by the Russian laws with explicit reference to the provisions of the WTO agreements," the expert said.

With Russia joining the WTO, the rules of this trade organization become a priority over the other Russian statutory acts, except the constitution, he said.]]> http://www.kyivpost.com/news/ukraine/detail/127870/ Ukraine abroad Fri, 18 May 2012 17:44:32 +0300 here]]> http://www.kyivpost.com/news/world/detail/127869/ World Fri, 18 May 2012 17:33:54 +0300


Even though Chavez has made only fleeting appearances in public since his cancer struck again in February, most polls show the former soldier ahead of opposition challenger Henrique Capriles. Some suggest he is widening his lead.

But five months from the Oct. 7 election, and with Chavez's prognosis a state secret, much could change.

Here are some possible scenarios ahead of the presidential election inSouth America's No. 1 oil exporter:


AILING CHAVEZ RUNS FOR RE-ELECTION

While little is known about Chavez's health, the recurrence of his cancer in February and his long absences from public view have added fuel to speculation by anti-government journalists that he has taken a turn for the worse.

There have been false rumors of his death at various times, though Chavez's claim to be fully cured at the end of last year also turned out to be wrong.

Specialists say a full recovery has looked less likely since February, when he returned toCubafor more surgery, and Venezuelan bonds have rallied this year on bets the fiery socialist will be too ill run for another term. Debt prices fell this week, however, as investors doubted "Chavismo" can be beaten.

A source with links to Chavez's doctors told Reuters the 57-year-old leader is suffering problems in one of his legs, suggesting his condition may be deteriorating.

But efforts by Capriles' campaign team to sow debate about everyday problems such as crime and unemployment have struggled to take root, overshadowed by the looming figure of Chavez who has dominated the country's politics for 13 years and the mystery over his illness.

That could embolden any strategists within Chavez's circle who are determined to see him win another election, even if his campaign is conducted with sporadic public appearances, phone calls to state media and Twitter messages.

The opposition, which has united behind the young governor's pledge to install a Brazilian-style, center-left government, hopes Chavez will keep himself scarce, allowing them to court large numbers of undecided voters averse to the prospect of an ailing president with an uncertain future.

Eurasia Group analystDaniel Kernersaid the government strategy is for Chavez to run even if very sick.

"This suggests that unless he is almost incapable of campaigning, or does not make it to the election, investors should expect Chavez to run," he wrote in a briefing note.



CHAVEZ LEAVES POWER BEFORE VOTE

The idea of "Chavismo" without Chavez has been a taboo in government circles for years, but it is now a possibility that strategists on both sides of the nation's political divide are analyzing closely.

If Chavez were forced to abandon the election race because of his illness, the short-term future for the upended Venezuelan political landscape would hinge on whether he would be able to anoint a clear political heir to lead his "revolution."

Most polls show Capriles would beat any of the figures seen as potential successors, who lack Chavez's charisma and popularity among the poor. But analysts say this might be avoided if Chavez were able to anoint an heir in an orderly fashion, especially given that the sympathy vote would go to his candidate.

A hurried or chaotic departure from the election race in which Chavez is unable to pass the baton to a hand-picked replacement would raise the risk of infighting within his movement or opposition from the armed forces who have been an important part of his power base.

"Chavez's personal negotiations with internal critics would be the only way for a substitute to avoid turmoil and avert conflicts," said local pollsterLuis Vicente Leon. "If he could manage that, it wouldn't necessarily mean defeat for Chavismo."

Foreign MinisterNicolas Maduro, a former bus driver whose more pragmatic approach and trade union past win him favor in diverse circles, is foreign analysts' bet as the most likely replacement. Other possibilities includeNational AssemblypresidentDiosdado Cabelloor Vice PresidentElias Jaua.

Because polls show any one of them trailing Capriles for now, emphasis would likely be put on picking the most competitive. A surprise candidate - like Chavez's brother Adan or his daughter Maria Gabriela Chavez - might be possible.

There is also a possibility that the election could be delayed if there were "exceptional circumstances," which would allow Chavez or his party more time to name a replacement if necessary.



CHAVEZ'S HEALTH WORSENS SHARPLY AFTER ELECTION

Many opposition commentators question the reliability of voter surveys giving Chavez a widening lead over Capriles and, with five months of campaigning left, some say the young governor of Miranda state still has a good chance of unseating him.

A Chavez victory in October would likely be the least destabilizing option forVenezuela. Maintaining the status quo, however, might open the door to intense uncertainty in the short- to medium-term if his prognosis is as poor as some doctors and the opposition suggest.

Venezuela's constitution states that if an incumbent steps down within four years into a six-year term, a new vote would be due. So if Chavez were to win, yet become incapacitated soon after, the opposition would have another chance.

It would likely be more complicated for Chavez's rivals if he had to step down between winning the election and starting a new term in February 2013.

"The worst thing for the opposition would be if Chavez won the elections and then dropped out before being sworn in in February," a senior opposition source told Reuters, warning that such a scenario might fragment opponents' current alliance.

"The opposition wouldn't have time for primaries and neither would it be able to name Capriles, because he would have lost ... The fragmentation of the opposition's unity is very likely in this scenario."]]> http://www.kyivpost.com/news/russia/detail/127868/ Russia and former Soviet Union Fri, 18 May 2012 17:22:10 +0300
The charge brought against the Belarusians "is untrue," Savinykh said earlier.

On August 27, 2011, Libyan rebels from Qa'qaa battalion detained Russians Vladimir Dolgov and Alexander Shadrov and 25 Ukrainians and Belarusians. The whole group was charged with restoring the military hardware used by the Gaddafi regime to "destroy the Libyan people."

On September 3, the group was released thanks to the efforts of the Russian Embassy in Tripoli, but on September 6 they were arrested again as part of an inquiry into their possible involvement in repairing and upgrading tanks for the forces of the former Libyan leader.

Russia repeatedly stated that it will seek swift release of the Russian citizens.]]> http://www.kyivpost.com/news/nation/detail/127867/ Ukraine Fri, 18 May 2012 17:12:52 +0300
In addition, Poland's Bank Gospodarstwa Krajowego and the State Export-Import Bank of Ukraine (Ukreximbank, Kyiv) signed a memorandum of understanding.

The participants of the meeting agreed that supplies of Ukrainian electricity to Poland were important.

To increase energy efficiency and energy conservation, the Ukrainian side proposed to support projects worth over EUR 230 million at a meeting of the Assembly of Contributors of the Eastern Europe Energy Efficiency and Environmental Partnership (E5P) in November 2012.

The sides also noted that the potential of the Euro-Asian Oil Transportation Corridor of the Sarmatia International Pipeline Company and the construction of Brody-Plock oil pipeline has not yet been realized in full.

Ukraine and Poland decided to continue cooperation in the nuclear energy sphere under the aegis of the International Atomic Energy Agency (IAEA) to ensure safety during the preparations for and holding of the Euro 2012 European Football Championship.

The participants also discussed Ukraine's participation in the constriction of nuclear power plants (NPPs) in Poland, assistance for infrastructure development in the sphere of nuclear regulation, and the organization of the training of employees of the National Atomic Energy Agency.

In addition, Ukraine and Poland agreed to draw up intergovernmental agreements on sea transport, on the maintenance of border road bridges, and on rail services.

The sides also discussed a possibility of participation of Poland in the development of container traffic towards the Baltic Sea and the Black Sea, the liberalization of car transportation, etc.

The countries are also to develop cultural tourism, eco tourism, and health-improving tourism.

In addition, the sides will develop cross-border and car tourism, exchange information on the expansion of tourism routes, the certification of tourism services, and the possibility of cooperation in the Carpathian region.]]> http://www.kyivpost.com/news/nation/detail/127865/ Ukraine Fri, 18 May 2012 16:51:10 +0300
Bohatyriova said that medical insurance in Ukraine would be introduced sooner or later.

"There's a lot of talk about the model of medicine. We'll surely arrive at medical insurance. This is because 90% of the population considers health care to be of great importance. Forty-six percent is ready to introduce full medical insurance. These people are ready to make deposits to fully provide for themselves," she said.

An advisor to the health minister, Mykola Prodanchuk, asked when medical insurance would be introduced in Ukraine, said that today it is difficult to say there have been any results of reform, since the discussion about relations in the medical sphere has just only started.

"Reform isn't just a slogan, it's a change of relations. Today the system of doctor-patient relations is the same as it has been for last 70 years. But the situation, society, and the economy have changed. Today we're just starting to discuss what to do, and what we want to get as a result," he said.

Bohatyriova also opened a two-day national research and practical conference of the Association of the Ukrainian Head Doctors in Chernivtsi. The topics of the conference are management in the health care system and the introduction of the medical reform.]]> http://www.kyivpost.com/news/city/detail/127866/ City Fri, 18 May 2012 16:45:04 +0300
Some details of the future event can be found on its official web page: http//www.lgbtua.com/pride/

Many criticized the decision of Kyiv city administration to allow the parade in Kyiv; 10 members of parliament even wrote a letter to head of Kyiv city administration Oleksandr Popov asking him to ban the parade.

Organizers say they choose the time ahead of Euro 2012 football championship so that the international attention would be drawn to Ukraine and the authorities “would not dare to not give the permission."

“Pride is not a parade or a carnival. Our goal is to draw attention to the problem of homophobia in Ukrainian society and problems of gay community in Ukraine,” says the head of organizing committee Taras Karasiychuk.]]> http://www.kyivpost.com/news/nation/detail/127863/ Ukraine Fri, 18 May 2012 16:40:35 +0300
On Thursday, May 17 Rospotrebnadzor consumer rights watchdog allowed the first two Ukrainian manufacturers - Hadiachsyr and Prometei - to resume exporting cheese to the Russian market, following the results of laboratory tests.

Onishchenko said that on Friday Rospotrebnadzor is giving the green light to the delivery of some 10 shipments of cheese from Pyriatyn cheese plant and Dubnomoloko.]]> http://www.kyivpost.com/news/opinion/op_ed/detail/127864/ OP-ED Fri, 18 May 2012 16:38:25 +0300
The Italian authorities are presently awaiting material from Ukraine’s prosecutor general to back up their extradition request. Members of the opposition Batkivshchyna Party have written to the Italian authorities setting out their grounds for asserting that the prosecution is politically motivated. In Italy Avakov will be represented by two Italian lawyers.

The charges against the former Governor and popular opposition politician in Kharkiv are ominously reminiscent of those against Tymoshenko, former Interior Minister Yury Lutsenko and others. In fact, pretty well everything is similar to those cases.

The charges involve the same “abuse of power” clause which has given cause for concern regarding selective use of justice with relation to more prominent leaders of the opposition. While it is for the Italian court to determine the substance of the charges, their timing and nature have led to very specific concerns being voiced in Ukraine. Nor are such concerns expressed only by members of the political opposition. Soon after Avakov was placed on the Interpol wanted list, the Ukrainian Helsinki Human Rights Union and Kharkiv Human Rights Group addressed a letter to Interpol explaining the many doubts regarding the criminal proceedings.

There must also be serious question marks over how fair any trial of Mr Avakov would be if he were to be extradited to Ukraine. These are fuelled by the recent sentencing of former Interior Minister Yury Lutsenko to 4 years imprisonment after a trial in which prosecution witnesses spoke of having been told what to write in their testimony and / or pressurized by the Prosecutor’s Office. The trial was marred by many other serious procedural infringements not investigated by the court, while the charges themselves concerned practice within the Ministry which a number of witnesses said was standard before and has continued since Lutsenko’s term in office.

It is very much to be hoped that the application for Avakov’s extradition will be rejected. Any other course would surely send very dangerous signals to those in power in Ukraine and to the Ukrainian public. Avakov’s extradition would demonstrate willingness by a court in an EU country to disregard serious doubts about the very charges, Avakov’s role in the alleged offence, and about well-founded scepticism regarding chances of his receiving a fair trial.

Halya Coynash is a member of the Kharkiv Human Rights Group.]]> http://www.kyivpost.com/news/world/detail/127861/ World Fri, 18 May 2012 16:31:24 +0300
The survey published Friday, May 18 was commissioned by Irish bookmakers Paddy Power and conducted by pollsters Red C. It found that 50 percent of registered voters intend to vote yes, 31 percent no. The remaining 19 percent said they weren't sure or wouldn't vote.

Red C says excluding non-voters leaves 62 percent yes, 38 percent no. The survey of 1,000 people had a 3 percent error margin.]]> http://www.kyivpost.com/news/opinion/op_ed/detail/127862/ OP-ED Fri, 18 May 2012 16:30:19 +0300
There was alarm in early February when media magnate Valery Khoroshkovsky was replaced as head of the SBU by Russian-born, KGB-trained Igor Kalinin.]]>
It also largely coincided with the presidential stamp of approval on two legislative moves which increase the scope of the SBU and create a new subdivision for protecting “information security.”

New reports of SBU activity suggest that the concerns were well-founded – and that those in power may be flexing all muscles before the coming parliamentary elections.

Recently, well-known sociologist and intellectual Yevhen Holovakha announced that all members of the Institute of Sociology’s Academic Board have been called for questioning to the SBU. This involves nearly 20 people, some with a high reputation in their field. The letter received threatens to bring them in for questioning by force if they don’t turn up, and warns of possible administrative or criminal proceedings.

Following widespread media interest in this sudden flurry of activity, the SBU announced on their website that they were investigating a criminal case initiated on Feb. 15 “over misappropriation of funds by individuals from the Centre for Adapting the Civil Service to EU standards of the Central Department of Ukraine’s Civil Service and the Institute of Sociology.”

The presumption of innocence is not evident from the report, but the amount of Hr 920,000 is mentioned. The members of the institute are to be questioned as witnesses.
The details in no way answer the points raised by Yevhen Holovakha; namely, why all members of the Academic Council have been summoned and why the matter is under the SBU at all?

Holovakha’s belief that the move is aimed at intimidation seems all the more credible given another report only two days earlier of similar SBU activities.

Recently, Mustafa Nayem reported at Ukrainska Pravda that teachers at the “manager” specialized language centre had received “invitations” to the SBU “to give explanations.”
The invitations were delivered by hand by people presenting themselves as SBU investigators. There was no explanation as to why the people were being invited, only the signature of the head of the SBU Department for Fighting Corruption and Organized Crime and reference to a particular article of the Law on the SBU. The law, neither in that clause nor elsewhere mentions authority to call somebody in “to give explanations.’

It would appear that the Security Service measures which first set alarm bells ringing in 2010 are still continuing. The above measures, as well as ongoing “prophylactic” talks with civic activists and periodic suggestions that those receiving foreign grants are working against the state are depressingly reminiscent of Soviet times.

The ideological coating has disappeared and the measures seem clearly aimed at keeping a grip on control. It is no accident that the SBU conversations with civic activists, for example, from Democratic Alliance, have often focused on projects aimed at monitoring elections and their sources of funding.

These are not the tasks the Security Service of any democracy performs, nor are methods of intimidation and surveillance of members of civil society appropriate election campaigning methods.

Halya Coynash is a member of the Kharkiv Human Rights Group.]]> http://www.kyivpost.com/news/world/detail/127860/ World Fri, 18 May 2012 16:16:20 +0300
A gay rights group, Gay Straight Alliance, said in a report Friday that violence and harassment against the gay population is on the rise in Serbia.

The Balkan country's pro-EU government has pledged to protect gay rights as part of reform needed to join the bloc, but critics say little has been done.

A gay pride march last year was canceled because of the threat of violence from extremists, while more than 100 people were injured in violent clashes during the 2010 event]]> http://www.kyivpost.com/news/russia/detail/127859/ Russia and former Soviet Union Fri, 18 May 2012 16:01:58 +0300
They said their lives weren't in danger.

The Emergency Situations Ministry said crews urgently evacuated several hundred residents from Sungach and a nearby village.

Authorities also ordered traffic halted on the Trans-Siberian railway that runs through Sungach.

Footage broadcast on Russia's NTV television showed a huge column of smoke rising to the skies from the arsenal. The cause of the blaze was not immediately named.]]> http://www.kyivpost.com/news/nation/detail/127858/ Ukraine Fri, 18 May 2012 15:52:23 +0300 According to him, the pensions for years of service will increase to UAH 2,614 from UAH 1,964. The disablement pensions will grow to Hr 3,036 from Hr 2,281, and payments to families that lost a breadwinner will rise to Hr 1,553 from Hr 1,167.]]> http://www.kyivpost.com/news/politics/detail/127857/ Politics Fri, 18 May 2012 15:36:13 +0300
At the same time, Kravchuk stressed that the Constitutional Assembly had nothing to do with organizing such a referendum, which was the responsibility of the Verkhovna Rada.]]> http://www.kyivpost.com/news/world/detail/127856/ World Fri, 18 May 2012 15:20:50 +0300
Facebook priced its IPO at $38 per share on Thursday, at the top of expectations. Now, regular investors will have a chance to buy stock in Facebook for the first time. The stock will trade under ticker symbol will be FB.

Facebook has come to define social networking by getting 900 million people around the world to share everything from photos of their pets to their deepest thoughts.

It has done so while managing to become one of the few profitable Internet companies to go public recently. It had net income of $205 million in the first three months of 2012, on revenue of $1.06 billion. In all of 2011, it earned $1 billion, up from $606 million a year earlier. That's a far cry from 2007, when it posted a net loss of $138 million and revenue of $153 million.

"They could have gone public in 2009 at a much lower price," said Nick Einhorn, research analyst at IPO investment advisory firm Renaissance Capital. "They waited as long as they could to go public, so it makes sense that it's a very large offering."

Facebook Inc.'s valuation is the third-highest in an IPO, according to Dealogic, a provider of financial data. Only two Chinese banks, Agricultural Bank of China in 2010 and Industrial and Commercial Bank of China in 2006, have been worth more. They were worth $133 billion and $132 billion, respectively. By another measure —the amount raised— Facebook ranks third among U.S. IPOs. The largest was Visa, which raised $17.9 billion in 2008. No. 2 was Enel, a power company, and No. 4 was General Motors, according to Renaissance Capital.

The $38 share price is the price at which the investment banks arranging the offering will sell the stock to their clients. In an IPO, the banks buy the stock first from the company and the early investors and then sell to the public. If extra shares reserved to cover additional demand are sold as part of the transaction, Facebook and its early investors stand to reap as much as $18.4 billion.

For a company that was born in a Harvard dormitory and went on to reimagine online communication, the stock sale means more money to build on the features and services it offers users. It means an infusion of money to hire the best engineers to work at its sprawling California headquarters, or in New York City, where it opened an engineering office last year.

And it means early investors, who took a chance seeding the young social network with start-up funds six, seven and eight years ago, can reap big rewards. Peter Thiel, the venture capitalist who sits on Facebook's board of directors, invested $500,000 in the company in 2004. He's selling nearly 17 million of his shares in the IPO, which means he'll get some $640 million. He will hold on to about 28 million shares, worth $1.06 billion.

The offering values Facebook, whose 2011 revenue was $3.7 billion, at as much as $104 billion. The sky-high valuation has its skeptics, who worry about signs of a slowdown and Facebook's ability to grow in the mobile space when it was created with desktop computers in mind. Rival Google Inc., whose revenue stood at $38 billion last year, has a market capitalization of $207 billion.

"There seems to be somewhat of a hype around the stock offering," says Gartner analyst Brian Blau.

That may be an understatement.

Facebook's IPO dominated media coverage in the weeks and days leading up to the event. Zuckerberg's hoodie made headlines when he wore it to a meeting with investors as did General Motors' decision this week to stop advertising on the site —and rival Ford's affirmation that its Facebook ads have been effective.

There are more than a few reasons for the exuberance. First, there's Facebook's sheer size and high profile. The company grew from a college-only social network to an Internet phenomenon embraced by legions of people, from teenagers to grandmothers to pro-democracy activists in the Middle East.

Secondly, it's personal.

"It's probably one of the first times there has been an IPO where everyone sort of has a stake in the outcome," Blau says. While most Facebook users won't see a penny from the offering, they are all intimately familiar with the company.

And then there's Zuckerberg, who turned 28 on Monday. He has emerged as the latest in a lineage of Silicon Valley prodigies who are alternately hailed for pushing the world in new directions and reviled for overstepping their bounds. He counted the late Apple CEO Steve Jobs among his mentors, and he became one of the world's youngest billionaires — at least on paper — well before Facebook went public. A dramatized and less-than-flattering version of Facebook's founding was the subject of a Hollywood movie that won three Academy Awards last year, propelling Zuckerberg even further into the public spotlight.

Though Zuckerberg is selling about 30 million shares, he will remain Facebook's largest shareholder. Even after the IPO, he will own 503.6 million shares, or 32 percent of Facebook's total shares. At the $38 share price, his stake in the company is worth $19.1 billion. Zuckerberg will control the company with 56 percent of its voting stock as a result of agreements he has with other shareholders who promise to vote his way.

The set-up helps to ensure that he and other executives keep control as the demands of Wall Street for short-term returns exert new pressures on the company.]]> http://www.kyivpost.com/news/world/detail/127855/ World Fri, 18 May 2012 15:08:08 +0300


AlthoughTurkeyhas few oil and gas reserves of its own, the NATO member retains leverage because of its substantial navy and its role as an important transit hub for energy fromRussiaand the Caspian Sea region.

"Companies that cooperate with (Greek Cypriots) will not be included in future energy projects inTurkey," the Foreign Ministry said in an e-mailed statement.

"Turkish Cypriots have the same, indissoluble rights as Greek Cypriots to the natural resources of the island's continental shelf," it said. "Both communities must decide together how maritime natural gas and oil resources will be used."

French oil major Total,Malaysia's Petronas,Korea's Kogas, Eni ofItaly,Russia'sNovatek,Delek of IsraelandAustralia's Woodside Energy Holdings are among the 15 companies who have bid for contracts.

Cyprus, along withIsraelandLebanon, straddle what may be the biggest natural gas find of the past decade in the politically volatileeastern Mediterranean.



MILITARY ESCORT

Nicosia says any exploration is within its rights, and has received backing from its partners in theEuropean Union.

Turkey, which has also begun exploration work off itsMediterranean coast, sits on strategic energy routes to lucrative Western markets. Eni is part of a venture that wants to build a 340-mile pipeline, worth $3 billion, to ship Russian gas to world markets.

The potential of theeastern Mediterraneandeposits is enormous. U.S.-based Noble Energy last year reported 5-8 trillion cubic feet (tcf) of gas south ofCyprus-- enough to makeCyprusself-sufficient for 250 years.

Turkeyresponded to Noble's exploration by sending out a seismic research vessel accompanied by military escort.

The question of who has the right to tap the deposits, which could total more than 100 tcf, has added urgency to efforts to settle the conflict overCyprusand has also broughtLebanoninto dispute withIsraelover the Jewish state's discoveries.

Most of the interest shown by bidders this month was for a block lying northeast of the recently discovery on the maritime border betweenCyprusandIsrael.

TheTurkish Foreign Ministrysaid the Cypriot tender included a western area that abutsTurkey's continental shelf.

"AsTurkeyhas previously stated, it will not allow any activity in that area," the statement said.

OnlyTurkeyrecognises theTurkish Cypriot administrationand keeps tens of thousands of troops on the island, located some 40 miles off its southern coast.

The decades-long dispute has threatened to derailTurkey's bid to join theEuropean Union. A member since 2004,Cyprustakes over the bloc's rotating presidency in July, andTurkeyhas said it will suspend its candidacy during that tenure.

Efforts to reconcile Greek and Turkish Cypriots have failed more than a dozen times since the 1960s. The two sides are now currently engaged in another round of UN-backed negotiations.]]> http://www.kyivpost.com/news/world/detail/127854/ World Fri, 18 May 2012 14:53:15 +0300
The protest group calling itself Blockupy seeks to stage protests over the weekend and has called for barring access to the European Central Bank, which is located in the downtown business district of continental Europe's biggest financial hub.

Some 5,000 police officers are to keep the weekend protests in check.

An Occupy tent camp in front of the ECB was cleared Wednesday as part of the security measures for the weekend protests. Authorities say the camp can be re-erected late Sunday.]]>