Amour Club News

Odessa, during its 213 years of prospering, was always alluring business-like and enterprising people. The history of city, its temper was always determined by merchant, business men, entrepreneurs… to make the story short, those who had the commercial “vein” in them. Not by accident, the municipal council of our city is located on the former building of an exchange with the sculpture of Mercury on the front. As is well known, Mercury is the god of trade, profit, intelligence and adroitness. Odessa was built as an outpost of Russian Empire. Two hundred years before it had already been one of the most prominent trade centers. Most famous businessmen took part in creating the culture and spirit of an entrepreneurship. That is why each odessite considers himself an entrepreneurship deep in his soul. You can feel it in from the characters of Odessa citizens, who can be distinguished not only by their sharp humor. First things that point on an inclination to business are innate adventurism and luck. A true odessite is never afraid of risk. He may take the risk of somebody else’s capital and be lucky. That is why our city is famous not only for Deribasovskaya Street or Potemkin Stairs, but market “Privoz”, “7^th kilometer” and plenty of casinos, slot-machines. Odessa had always been a truly magic place for entrepreneurship talents between East and West! 

The seventh international jazz festival is going to take place in Odessa during 14 - 16 September, 2007. For the seventh time Odessa, famous for being a pearl in the Black Sea coast of Ukraine, will become a hostess of the recognized fest “Jazz Carnival in Odessa”.
Deribasovskaya and Primorskiy Boulevard will sink in jazz rhythms and dixielands; they will be occupied by jazzmen and devoted fans. For three days in the Philarmonia will rein “Jazz Carnival in Odessa”.    
                                   
It is the carnival of stars and discoveries!
The list of participants of Jazz Carnival in Odessa-2007” is truly remarkable for the diversity of music styles and geographical destinations of its artists. It is the carnival of delight thanks to hearty meetings with jazz stars and foretaste of new cult figures. You won’t find any other Ukrainian festival, which can boast with such richness of invited guests. Three projects of this carnival are worthy of the honorable status “headliner”:

• Indian musician Amit Chatterjee at the head of Amit Chatterjee Alliance, the longstanding leader of his project Zawinul Sindicate
• the project Pago Libre with worldwide known Russian musician Arkadiy Shicloper
• and finally, the legend of American jazz saxophonist James Solding

It is the carnival of countries and continents!
Each evening on the scaffoldings of Philharmonic scene will appear musicians of three different projects, of three different jazz schools, of three different cultures. Traditionally, the staff of participants represent mixed picture of national and ethnic variations on jazz theme. For the first time in the history of Odessa Carnival will play musicians from 14 countries and 3 continents, they will come from Argentina, Austria, Poland, Czech republic, Italy, Spain, India, Turkey, Switzerland, Germany, France, USA, Russia and Ukraine.
 

It is the carnival of seasons and spirits!
The first carnival in Odessa was held in 2001. Odessa was homeland for first soviet jazzmen – Leonid Utesov. “Jazz Carnival in Odessa” is always held in September, at the height of the “velvet” season, when southern sun doesn’t burn, the sea is still warm; Odessa is still sodden by summer and carnival motley – an eternal mix of cultures and nationalities, sounds and styles, the sea breeze and dry breathing of steppes.
Not by accident, the soviet jazzmen Leonid Utesov said: “Odessa – is fatherland of jazz”. Here everybody can fell the atmosphere of humor, holiday and freedom. Thanks to Utesov, Odessa was always considered the soviet capital of jazz. The festival is not improvisation today, but our tradition. The peak of Festival, its triumph – is traditional Gala-concert under the open sky behind famous architectural monument of worldwide importance – Odessa Opera Theatre. And finally, Jazz Carnival is not only known by its concerts, representing practically all spectrums of jazz art, but because of its incomparable atmosphere.   

The Ukrainian state balance of minerals contains 33 deposits of such building stones as granite and limestone in Nikolayev city. The volume of stocks is around 470 000 cubic meters. This makes actually 4,5% of all stocks around the country. However, specialists value the potential output at millions of cubic meters annually. Investors (both domestic and foreign) put themselves down on a waiting list in order to get their own morsel of this tasty pie.
 
Let start with business expenses…
An entrepreneur, fist of all, must well realize that this business is not simply expensive, it is very expensive. Moreover, its first stage – bureaucratic - is rather lingering, it reminds the steeplechase: it is so complicated sometimes, that not all come to the finishing post. It is well-known that only rich and influential people at the same time can obtain a right for using the quarry. On the other hand, a man without relations can waste years on this matter. A right to use the certain lot, the certain deposit, as well as the right to study or to extract can be obtained during an auction. The participation in it costs 7 000 hryvnias, plus 30 000 hryvnias of dues before, plus 32 000 hryvnias for the geological documentation, plus 10% of the initial price determined by the state. Then candidates fight during an auction, the price gets higher, and finally the winner obtains the desired license permitting him to use deposits. He must also get the numerous agreements from village and regional councils, an ecologic map in regional department of ecology, the permission from protection from the labor inspectorate, etc.
The next investment – is purchasing of the equipment, the minimal set of which costs approximately 15 million hryvnias for block open pit and up to 50 million hryvnias for macadam one.
The geologic prospecting is not a cheap pleasure too. It may be quite risky: the deposits of granite can turn to have a high radioactive background in the result. In general, the granite could be divided into 3 groups. The stone of first group can be used in all kinds of building. The second class stone cannot be used in building of dwelling houses. The third is useful in building of roads and hydraulic works. Of course, the stone of the first group has the best commercial future. Here in Ukraine, its deposits can be found in Domanevskiy, Bratskiy, Voznesenskiy, Kazankovskiy, Novobugskiy, Elaneckiy regions of Nikolayev. The minimum price for cubic meter of such stone is around 350 dollars.
 

Why is it still worthy?   
Even keeping in mind the huge amount of initial investments, there is more than enough people who desire to start up such business. The reason for such desire is the high yield and the rapid payback. In fact, the macadam open pit is commonly repaid in 2 years.
Each entrepreneur has to decide for himself: whether he wishes to make rough business only or would like to be involved in production with closed cycle. An experience shows the entrepreneur who is engaged in the stone processing wins more. From the other hand, it isn’t profitable just to process the stone and not to have own rough basis. Today the major importers of our raw remain Russia and Poland. However, there is the number of enterprises which supply Western Europe and USA.
The business is profitable because all the waste is being utilized, even the granite dust. It is applied on the ceramics under the high pressure and temperature.
This business brings noticeable changes to the social life as well. One open pit requires not less than 100 workers. As usual, it is observed high level of unemployment in villages today. As experts claim, the deposits of Nikolayev region are enough for as many as fifty firms. It is also true that deposits should be studied well. There is no council or any other state structure that will control specifically this branch. But there are people who believe in future if their risky business and ready to invest large sums in the branch.

If you are a tourist and would like to prove your friend that you truly have been in Odessa, then keep the straight and narrow path to Soborka or Primorskiy boulevard. Here enterprising odessites will sell you some exclusive knick-knackery, made by their skilful hands. It may have an inscription “Odessa” or “Odessa 2007”. You can also find beautiful masterpieces or rarity with interesting stories. All south of Ukraine is flooded with white peak-caps as comrade Bender was wearing. Of course, this souvenir goes with splendid inscription “Odessa” too. By the way, between two famous sights of interest – Duke and Sea port – local photographers are ready in a moment to make a picture of you with one of exotic animals. They can also put your majestic face in some typical view of Odessa for other price. In case you desire, there is a possibility to buy unique T-shirt with Opera Theatre in front or, if you like, group of Odessa criminals. It is all up to you. You can even purchase tins with Odessa air inside. But if you have a spare hour and desire to find truly valuable things, you should spend it in Sobornaya Square. Almost each seller here is a crackjack.
However, the most bright memory of Odessa will be your tan, which will remind you about warm sun, wide beaches and handsome ladies. But unfortunately the tun can disappear as time goes by. That’s why you should better picture yourself with any sight of Odessa that had fascinated you most. But genuine experts say that the best memories of Odessa will leave our beautiful girls and warm conversations with locals. Finally, I can suggest you buying a bottle of Odessa champagne with its inimitable taste.

Odessa is traditionally notable for its contacts on international level. During the first half year 2007 Odessa authorities were trying hard to create a positive image of the city, favorable for investments. It seems, that foreign investors had finally evaluated these efforts. Statistics say that most attractive spheres of Odessa became: an oil-refining industry the building construction and nonresidential construction activity the food industry trade and mediation in it real property business recreation and tourism An influx of foreign investments per one resident is 439 USD. An influx of foreign investments is continually increasing (to be precise its growth rate is 14,5%). This is an evidence of high trust of foreign partners. International relations of our city become stronger with each year and continue to develop. A consolidation of international ties will always remain the foreground task for our city. We are interested in the collaboration of Odessa business structures with foreign ones. The questions of further expansion of investment activities are regularly discussed during meeting with EBRR. It is planned to create a new European region near the Black sea, which will contribute much to the simplification of boundary and custom procedures for businessmen, students, journalists, will give an impulse for tourism development. Our city had already lunched such investment projects as the reconstruction of International Airport “Odessa”, historical centre reconstruction and accommodations renewal in Moldavanka region.

Today we can witness the redistribution of retail oil products market. Owners of filling stations, who worked under boards of huge oil companies, today found themselves standing at the crossroads. Former partners are not interested in cooperation any more, and jobbers continue either to work independently or sell their business. 

Well arranged ties with suppliers, the quantity of not less than 30-40filling stations, business diversification at the expense of trade and attendant services – all these are conditions for survival on the market of small filling stations. The strategy of oil giants had changed. The majority of small stations figure on the development of own networks. Painted in bluish colors TNK’s, red “Lucoil”s or green “Neftegaz” stations are working without familiar logotypes. 

Only few years ago it was considered as prestigious to work with upright integrated companies, which extract and remake oil. The peak of popularity of jobbers contracts fell at 2001 and 2002 years. Numerous independent networks were obliged to save themselves, concluding contracts for regular oil supply by big player of oil market. This scheme was proposed first of all by Russian companies. For them it was the quickest way to consolidate their grip on Ukrainian market. All this we saw 5-6 years ago, when stoppages of oil supplies took place. As it was mentioned before, nowadays almost all companies try to create their own networks.

To find out an exact number of former jobbers is not an easy task. Operators say the figure between 4000 and 6000 filling stations. Approximately a third is presented by large-scale structures, each of which holds not less than 140 stations. All last are independent retailers, who prefer to keep aloof. The young ex-jobber company must negotiate about oil supplies. Though Ukrainian oil-processing factories avoid working with small networks as they give lots of trouble. If they were working under the brand of large firm, now filling stations should make re-branding. This procedure demands time and money. In addition, they have to fight for the quality and service. It has become noticeable to transform filling station into service complexes. This helps to receive higher income.
Not having an opportunity to carry business independently, jobbers are often forced to sell it. This had already done the filling station “Ekoil” - the former jobber of “Naftogaz”. It was bought by “WOG” company. This step doesn’t contradict the strategy of “WOG”; however company’s main goal is to form its own network under “WOG” brand. The further development of branch is connected with buying of working stations, or creating new ones. Among all oil-traders the jobbers network will preserve as it seems only “TNK”. Jobbers do not have any difficulty, they can easily sell their business. The market is not saturated yet. An active conversion takes place today.  The steady growth of motor transport, an increase in oil consuming make this branch enough attractive. This phase, according to businessmen forecast, will last about 5 years. At the end of this period the rash flow of foreign capital will happen. The first foreign guest on the market of oil retail trade is “Shell” company. The Ukrainian market is especially attractive for West European producers, who supply oil in Ukraine by wholesale.

The building boom continues in Ukraine. And at the same time it is noticeable the tendency of investments growth in producing of raw material. The owners of enterprises prefer buying open-cast mines not to depend upon suppliers, and plan to earn from exporting raw materials. The last great investment was done by German company Knauf - building of own mine of gypsum stone in Ternopolskiy region. The company has spent 10 million dollars for project realization. This sum should be recompensed in 10 years. A half of stone quarried will be exported. The company had already created a modern mining complex there. On the other hand, an export of integrated products is not foreseen. In the future a new factory producing dry mixtures will be built. But Knauf is not the only firm which quarries gypsum stone. Her nearest rival is another international concern is French company Lafarge. They have own  open-cast mine too in Artemovsk region. The stock volumes are about 140 million tones. This enough for several decades. Henkel Bautechnik also plans to open its own factory of dry mixtures and produce 220 000 tones of production annually. They are ready to invest 10 million euros. In spite of such solid investments, Ukrainian consumers should not expect prices to fall. Some regions of Ukraine have a shortage in construction materials and others have constant demand. We have a case, when increased supply won’t become stimulus for price rising. The total volume of gypsum stone deposits in Ukraine is 10 milliards. Most of them ate located in Artemovskiy, Doneckiy regions and Western Ukraine. It is enough for 200 years taking into account rational use. 

Crimean peninsula – is the traditional “white spot” in country’s energy balance. Only 10% of its total needs in energy is satisfied thanks to own generating supplies.  However, the Portuguese company, those name is Martifer Group, has decided to transform an energy potential of the region into a real project. The vice-president of Martifer Group, George Martins says: “We see that capacity of Ukrainian market allows running various projects, however we lay special emphasis on wind-power engineering.” To be more precise, the company showed readiness to construct two wind-driver power stations in Crimea. The total capacity of planned station is estimated in 300 megawatt. Another company “Novo-Eco” proposed to modernize existing transmission lines, build new ones and improve switch-yards. So, the final sum of investments makes up around 500 million euros. Such well-known financial structures as EBRR and Nordic Investment Bank had also expressed their willingness to take part in the project. The project manager, Mats Lundin has informed that they have already obtained the letter of approval from the Ministry. The building of power stations will start at the beginning of the year 2008. All works must be finished in 2 years. The first two platforms will be located in Chernomorskiy and Lenskiy regions of the peninsula. 150 wind turbines (2 megawatt each) will be established on them. To earn money from wind power stations are able mainly foreign companies as they posses the most essential thing - experience. Officials of “Novo-Eco” do not exclude attracting of Ukrainian equipment producers and building companies. The reason of power station building wasn’t a random choice. 90-93% of consumed electrical energy must be imported from the continent. In fact, 128,7 megawatt is produced. However, the deficit in peak periods is 200-400 megawatt.
During Soviet times the problem could be solved by nuclear power plant building.  However, in practice the idea is absolutely useless. A resort with “peaceful atom” nearby –is not a forward-looking object for tourism. Odessa is on a waiting list. Unfortunately our region also experience scarcity of energy. And it also has wind characteristics, which are exceptionally favorable for wind-driver power stations construction. We hope that Crimean experiment will be successful and serve as testimonial for foreign and local companies to start number of similar projects in Odessa region.

The latest trip dated August, 17^th-20^th we participated in was a tour to Zatoka within the short distance of 60km to Odessa. The driving took us 40 minutes or something as we took off the civilization and found ourselves in a Soviet style vacation base named “Micron”. The base is located right near the railway road with building infrastructure and the amusingly awesome beach.

The beach stretches along the whole sight an eye can see. Clear water, seagulls and small huts were exactly the thing a running from civilization backpacker would ever need. The base accommodates over 1000 people at a time, has the conveniences of Soviet style accommodations, entertainment with live music, bars, the canteen, billiards, disco 80s club and the chambermaid service.

Accommodations

The rooms located close to the beach (5-10 meters) are considered Luxury - $27 per person p/night. The double room has the amenities: TV, furniture – for clothes and a few small tables, comfortable orthopedic mattresses, European style shower and toilet, split system air conditioner, 24/7 heating and electricity. The rooms were light and clean. During our 2 day tour the electricity power was switched off twice in a period of 3-5 minutes. We thought it was okay as long as it was just a small power outage.

Standard Accommodations in “Micron”

Standard accommodations – close to the beach location on the territory of the base, price from $2 per person p/night.

The amenities include: soviet TV, linen, beds, cooker (per request), laundry (per request) and fridge (per request), electricity 24/7, water and toilet is common for neighbors (in the backyard).

Food in Micron

There are a few malls on the territory of the base where it’s easy to buy drinking water, beer, longer drinks, juice, fast food and hot drinks. The café produces the Ukrainian cuisine with borscht and garlic pampushkas for lovers of Ukraine meals.

Main course and second course is very cheap. For around 3 dollars it is possible to have the complete meal even for heavy eaters.

Closer to the trace there are a few nice cafes serving European food such as “Sova” (Owl), “The Rose of Winds” and “Skazka” (Fairy Tale). We chose the “Sova” restaurant. It seemed more of the modern interior and looking very decent. Each of us ordered borscht, bread, domestic made potatoes in pots, tomato juice and coffee. The dinner per person cost each of us only 6 dollars and was a real success. Some of us went on sun tanning; the others had a midday sleep.

Beach and food

The best place for rest we found out was the beach. Young boys delivering dry and smoked fish, mussels, dry calamari and crabs with cold beer could not leave us indifferent. Each beer cost us 1 USD and each big size fish cost us only 2 bucks.

We would not advice you visiting the local beach cafes, as long as there you wil spend more money for the same food.

The beach is not overcrowded compared to Odessa and has the clear advantages of:

• Clean white sand
• Clean water
• Less people
• Garbage-free

We took a ride on the water banana which lasted 25 minutes and cost only 2 US dollars, water slides charged us for only US$1.

The surprise of the tour was the competition of sand figures. The main prize won “Mermaid” – the composition of seaweed and shells.

Amusement and attractions in Zatoka, “Micron”

We found and explored carting while various evolution attractions, water swans attraction, water slides were left for younger ones and the kids, while we enjoyed the speed and fun accidents without anyone being hurt.

Nearby we found a small open market with fresh water melons, various fruits and vegetables, domestic wine, local meat and fish.

Zatoka is recommended for backpackers seeking vacation for US$35 per day or less

The Dutch experts had already presented their program of reconstruction and planning of Odessa beaches. Experts from the Netherlands together with Odessa colleagues carry out shooting a coastal line, check measurements of depths, analyze hydrometeorological conditions in the Odessa bay, etc. Netherland company put forward a project of artificial beach creation with cottage and multi-storey construction on these peninsulas in perspective. Dutchs envisage high economic feasibility of the program of such reconstruction. An approximate cost to modernizе the coastal protective system (without even an alluvium of new territories) is nearby 8,5 million euro. Let our readers make note, that the general length of Odessa coastal line is - 30 km. The future will show us whether such cooperation will be fruifull for city prosperity.

The head of department of engineering protection of city territories and development Vladimir Sokolov has informed, that ” the company Van Oord has won the tender for an alluvium of beaches, having given the shortest terms and the lowest price in comparison with competitors from Russia and Lithuania. The works will last until 20th of September. It is supposed to create 410 thousand cubic metre of artificial beaches in total. This process will start in one of the oldest Odessa beaches - Langeron. They also plan to change currents direction near coastal zone. It will allow to remove breakwaters from the Odessa beaches and to reconstruct piers.