Interview to the Internet edition "Ukrainska Pravda". Part two

Second part of Victor Pinchuk's Interview to Internet edition "Ukrainska Pravda".
Interviewer: Serhiy Leshchenko.

- Do you currently work at any large individual project?

- I want to build a really big contemporary art museum in Kyiv. Already found a site for it. The PinchukArtCentre is just a rehearsal.

- Pinchuk and a "new economy". Is there anything common about it?

- There is. I am investing in hi-tech things.

- Which ones?

- I wouldn't go into details about it - this is commercial classified information. The only thing I'd say is that these are software projects, internet projects and others.

- Is it about some small projects or one-billion projects?

- If such projects occur, they may well be worth a billion.

- Do you launch these projects in Ukraine?

- In different places, including Ukraine.

- The bank and pipe business are the biggest assets of yours...

- Well, I personally think that, say, media-assets are not cheaper than the bank.

- Hopefully, what is a share of heavy industry and a "new economy" within your business? Akhmetov, for instance, intends to reduce a share of the "old economy" in his assets to 50% by 2010-2015.

- I think that the share of my industrial business is going to be significantly reduced and it will make up less than half of all.

- Do you plan to privatize any state ownership?

- I concede that I might, however I haven't made any decision yet.

- Could you please tell more about your reconciliation with Igor Kolomoiskiy at Nikopol Ferroalloy Plant?

- I can only tell that we work together at the Plant. Nothing more.

- "Kommersant" newspaper published information the other day stating that 9% of share capital in Nikopol Ferroalloy Plant were assigned to a Russian Business-Group run by Babakov-Voyevodin...

- I'd rather not comment such publications.

- What is going to happen to your pipe business? Will you merge with Pipe-Metallurgical Company owned by a Russian businessman Dmitri Pumpyanski or will you apply for admission to official listing?

- I'd put thus: we have made our mind to hold IPO, however, we are simultaneously conducting consultations with several players (including the aforementioned one) on setting up some possible strategic alliances.
In other words, when you plan to hold IPO, you may want to come to an agreement with a "strategic" partner.

- Aren't you afraid that such potential strategic partners as, say Mr. Pumpyanskiy, are larger than you and that you are likely to be a junior partner within such alliance?

- No, not at all. Upon a merger, I'd be fine if capitalization of my assets increased even if I am a minority shareholder. In simple terms, pragmatism really matters here but not ambitions.

Such approach complies with my strategy consisting in conversion from the industrial group to an investment fund, that is portfolio company.

In other words, I am OK with the following portfolio diversification: here I am a strategic investor, there - a portfolio investor. Or, again, there I am a majority shareholder, here - a minority shareholder. Being a junior partner in a huge company is good too.

I'd rather have a well-balanced and efficient portfolio instead of puffing out cheeks and declaring: "Look, I am the Boss here!" Frankly speaking, I do not dream of becoming, say, a Pipe King!

- Still, at what stage is the negotiation process between you and Pumpyanskiy?

- They talk lots of rubbish in the press stating that we are in negotiations with the Pipe-Metallurgical Company and that I hold to 50 / 50 merger terms. First of all, we do not conduct any negotiations with the Pipe-Metallurgical Company. What we did hold were consultations with them and some other companies. In addition, I have never held any 50/50 merger terms to the Pipe-Metallurgical Company, because I can see that they are really bigger than I am down in the pipe business. We have never discussed the 50/50 issue during our meetings.

- Are you satisfied with the Agreement on Acquisition of "Ukrsotsbank", and with the price of two billion, offered for the bank? According to some newspapers, the price for the bank was underestimated.

- Yes, I am satisfied! The price is good as of today, and in addition to the aforementioned 2,2 billion, they are to pay off all revenue that bank gains in 2007.

Do I assume that the price for the bank will go up? Yes, it may well be that, say, in a year "Ukrsotsbank" would have been priced at USD 3 billion. However, this time may be used for making proper investments, so that returns thereof would outpace increase of the Bank's value. And we adopted such a strategy!

- After you have sold "Ukrsotsbank" you still have "Kredit-Dniepro" Bank. What do you plan to do? Does it mean that quit big banking business?

- One hundred percent true! I repeatedly declared in public that I did not consider big banking business as a long run strategy.

- Some newspapers published information on legal proceedings taken in London Court of Arbitration between Grigorishin and Kolomoiskiy. Among other things there was stated that in 2002 you had helped Grigorishin get out of the pretrial detention, demanding in exchange the shares in "Dneprospetsstal" at underestimated price.

- Nonsense! I do not even want to comment it. The only thing I say is that if you want to know the truth - ask Grigorishin.

- Do you dream of being listed at the top of all Ukrainian billionaires in the rankings prepared by "Focus" or "Korrespondent" magazines?

- I look at this in a very philosophical way... This is a question of life priorities, indeed. Frankly speaking, I have always been interested, especially now, in not only making money but spending it too. To spend money properly is a very important part of my life.

- To spend money for people or projects?

- I did not mean business-wise investments but rather social projects in Ukraine. This is extremely important and interesting.

- The entire country can see that you have started to collect relations with world-renowned personalities. Is there a person you would only like to get into contact with?

- Yes, I sometimes make my aim. However, these are very private issues. I wouldn't like to talk about my plans.

- Are there any recent achievements you have managed to accomplish resulting from relations with persons of such a kind?

- One of the recent concepts we have managed to make a reality was the concert played by Elton John on the Independence Square in Kyiv. Lena and myself intended to fulfill this project a long time ago. This was not just a show. This was a huge project. We and Elton John got by a certain distance together, and, evidently became friends. I benefited much from our relations. Thanks to Elton I met many prominent artists.

Then, there was this concert on Maidan with more than 200 thousands of listeners and everyone was really happy. The people came together irrespective of their political slants. There was something more. People on Maidan would openly say to the whole country: "Yes, I am HIV positive, and I live with it. So, please, give a due consideration to it, have sex with a condom".

- It looks naïve...

- Well, I don't think so... On the next day, after the concert, some friends of mine phoned to me saying: "Our children came up to us saying: "We would like to get tested for AIDS/HIV".

Then, some workers from AIDS/HIV testing Centers would call to Lena's Foundation and say: "You have brought lots of work to us!" Actually, I do not know how much work did we brought to them, neither I am certain of how many lives will be saved due to this...

Still, the next day after the concert, I was told that the Cabinet of Ministers held a serious meeting on AIDS situation. And it's always good when such a discussion is being held by the people on the square, because it may be done in not so many countries.

Still again, there was one of the well-known representatives of sexual minority who sat next to the President and his wife. He, by the way, is a very remarkable person. Not unusual, is it? This, however, is not unusual everywhere! This is cool. This is how a normal democratic country shows itself to the world.

I was told that the Maidan concert was being broadcast not only be BBC, "Euronews", CNN International, but even in America, by an American CNN.

- In other words, you like to blow agenda?

- But this is very positive, indeed! Before that the entire world would broadcast a different coverage: seizure of Prosecutor's Office, one special service fights with the other one, some people are protesting on Maidan the others on European Square... So, the world was watching it for a couple of months and concluded that the entire country was submerged in these developments.

And all of a sudden there appears a different picture: several thousand of people came to see a live concert by Elton John. And this is one of the coolest brands in the world! What are they talking about? About fight against AIDS!

"Bloody hell, - Europeans think, - Ukraine has indeed a sensible society that is facing the same problems as we are. Why being misled? Ukraine is just a normal country!"

- What will be next?

- Something will...

- It's just interesting to have a look into the future.

- I'd do it myself.

- But you know already!

- There is something that I know and something that don't. I get a real thrill out of working out something, implement it, and then say: "We planned to do so year ago already".

- Then tell me, please, about a project that will never be disrupted whatsoever!

- For instance, in Kyiv, we will arrange an exhibition showcasing the most prominent contemporary artists - Damien Hirst, Geoff Kuns and others. Plus, there'll be the best new Ukrainian works.

- And apart from art?

- We are going to hold Youth YES Summit in Kyiv. There will be representatives of all 27 countries of the European Union. There'll be leaders of youth organizations, three persons from each country at least: leftists, rightists, and centrists. The president of European Commission, José Manuel Barroso, and the Prime Minister of Portugal have already confirmed their participation.

We should train lobbyists for the European future of Ukraine from among the youth.

- So, you are now collecting relations that will start to work in future?

- Well, I am not collecting them for myself! Please take them and use them ...

- Have you got any goal that you consider unachievable?

- I'd put it this way, though I am not sure whether sounds modest: nothing is unachievable!

- In other words, even Clinton was quite achievable? By the way, some representatives of the American Establishment consider your joint activity with Clinton as an effort to obtain certain preferences if Hillary wins the elections...

- Having involved the world leader into solving our local AIDS problems was very difficult but, nonetheless very important task. Starting from 2003, Lena's Foundation has made a huge work. We understood that we need to attract the best world practice to be able to fight the AIDS epidemics.

It was very important for us to cooperate with the Clinton foundation because it provided the country with the access to cheap medicines. We first met with him to have a serious talk regarding the issue in January 2004. It was on the next day after all world newspaper had written that his Foundation had entered into Agreement with major producers of drugs for HIV positive people.

Under this Agreement, the Program launched by the Clinton Foundation included Africa countries and the Caribbean. So, after this meeting we started to work hard to include Ukraine into this program list.
In September 2004, we signed a Memorandum with the Clinton Foundation. Can you really think that I was considering the next American election back then?

- Why not? Hillary Clinton was real candidate then...

- First of all, the only candidate during that period was John Carry. Secondly, can you image someone who would dare to instruct Clinton where he should go, do, or speak?

President Clinton arrived to Ukraine because he was really concerned about the AIDS situation in the country. His Foundation is working all over the world in the countries where the AIDS situation is critical indeed.
Unfortunately, Ukraine is now holding the leading position in Europe in terms of HIV spreading rate. That is why the Clinton Foundation and Lena's Foundation will jointly carry out extensive work here. Lena and I have allocated $2,5 million for this.

In addition, and I do not like to sound posh, but Clinton really supports Ukraine's aspiration for democracy, market reforms and European integration.

He had planned to make an address in Davos during Ukrainian lunch session, but he could not arrive and sent his video-address. So, his arrival to Yalta is a result of our joint work for several years. The work that is aimed at fighting with AIDS and Ukraine's integration to Europe.

- There are rumors that you may invest into Clinton wife's election campaign?

- What are you talking about? It is not true! How can you imagine this? The Clinton Foundation is a totally transparent organization and one of the biggest charity foundations on our planet, and it really was a great honor for me and Lena to cooperate with the Clinton Foundation.

Moreover, the US election budgets are open for public and mass media. They may not contain a penny of any foreign money. It is prohibited!

In addition, such a wealthy country will somehow cope with elections without Ukrainian money, I can assure you.

- Can you make a forecast on what Bill Clinton will likely to help Ukraine with if his wife is elected President?

- Hillary Clinton has said many times that if she becomes President she will ask her husband to become a Goodwill US Ambassador Extraordinary. And the fact that the President Clinton is being supportive of Ukraine's development and its Euro-integration is great, indeed!

- Do you still maintain that neither you nor any of you family members are going to enter politics?

- No. This is out of the question. Neither me, nor Lena, nor Leonid Danilovich [Kuchma]! My projects have nothing to do with politics.

- Having said that, you keep on urging new generation to enter politics. But there is no one!?

- New generation come every day. Here is another one - Mr. Rybachuk has become a granddad.

- When Yushchenko resigns office, will you also invite him to deliver a speech at YES summit?

- Well, I am sure you noticed that Kuchma arrived to Yalta...

- Can you imagine this: former President Yushchenko at Yalta 2020, and it's just the time when Ukraine becomes a EU member!

- I personally think, this is just wonderful! But I'd rather set the year 2019 for this event!

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