Thursday, August 11, 2005

More shenanigans

This kind of thing still happens--


Interfax-Ukraine, Kyiv, Ukraine, Tues, August 9, 2005 KYIV - Representatives of two German companies Jungheinrich and Dufelsdorf Handelsgesellshaft producing agricultural and other equipments have appealed to the Ukrainian leadership, saying their Ukrainian partner –Kyivtractordetal – is intimidated.

They threaten to leave the Ukrainian market, which may serve a negative signal to German business circles, the Ukrainian service of Deutsche Welle reported. They call upon Ukrainian authorities to avert instability at the Kyiv-based enterprise.

Employees of the Ukrainian producer accuse courts and the Public Prosecutor's General Office of assisting elimination of the enterprise to have its land for
construction of a prestigious housing complex. Particularly, the plant's director
was detained, Deutsche Welle informs.

Now the German businessmen doubt over the execution of its commitments to other European partners because every ready-made mechanism has Ukrainian parts.

Adolf Dufelsdorf, the CEO of Dufelsdorf Handelsgesellshaft, said it is absolutely unclear what is going on for those used to work in another legal framework. He said they had been much more optimistic previously but now see how long Ukraine needs to cover on the way to Europe.

--and it needs an aggressive response by the business. It doesn't look like they have a direct approach to Yuschenko except through official channels so the success of that kind of appeal might be in doubt. But the new openness here creates other opportunities (and lessens risks) for the company to shine all kinds of light on this to get these officials to back off. And this needs to be pursued aggressively by the company to have any success. So an official appeal to Yuschenko is something that should be done but it is one prong of a multipronged attack the company should be pursuing.

One thing to remember is that there is rule of law here except when it makes a difference. That surprises Europeans and Americans and results in some paralysis when it hits them and makes it hard for them to understand what to do next. The rules of the game are no longer the rules. But it simply means that the legal solution is not going to work. There are other extra-legal (and perfectly ethical) methods that work better in these kinds of situations. And they all come down to shining lights on this sort of thing. Get this out in the public. Make it well known. There is a real sensitivity to this kind of thing right now so making it public knowledge will be very effective. One story in the newspaper won't do it, though.

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