Chapter Two

BUSINESS OF STATE IMPORTANCE

In 1992 Alexandr Nezdolya received another surprise from his amazing fate. His life took a sudden turn. Now Alexandr Ivanovich had a unique opportunity to learn insights of big business, to visit various corners of the planet and meet new interesting people. And also to become involved in the process of formation of economy of the independent Ukraine and its promotion on the foreign markets. SSU (Security Service of Ukraine) sent Colonel Alexandr Nezdolya on a mission of operational accompanying of activities of international joint-stock group (JSG) “Ukraine”.

Up to now many people perceive activities of JSG “Ukraine” as one of the most mysterious moments in establishment of the Ukrainian economy, and utterly not because it was some kind of a secret organization. Just because its reviews by the media were so subjective and contradicting (and for that there were objective reasons, which we will describe below), that any outsider would fail to understand anything. Economic competitors not only in Ukraine but also worldwide and aspirations of antagonistic political forces to use the JSG as an instrument in their hostilities, - all of this has made “Ukraine” a target for manipulators of public opinion. As a result of this, it real character has left buried under a thick layer of labels and masks. Today, almost ten years since, we finally can have a real opportunity to find out, what was JSG “Ukraine” and what was its real role in Ukrainian history.

However even more intriguing that the activity of JSG “Ukraine” itself is the fact that one of its founders and main investor was company “SEABECO” headed by a Canadian businessman Boris Birshtein. Yes, the same Birshtein, whose name was mentioned during a number of political scandals in Russia, during the embittered fight between Yeltsin on one side and the “Rutskoi - Khasbulatov” tandem one the other one. Many publications were dedicated to Birshtein, in which he was portrayed sometimes as a devil, who bought out the entire Russia, sometimes as a super agent greater than James Bond and sometimes as a genius-businessman, whose appearance on the Russian marked played an enormous positive role.

Later, when Yeltsin and his circle have tried to use Birshtein to blame their political opponents of corruption, mass media was accusing him of trying to take control of the economy of almost all countries of CIS. One way or the other, all of this leads to only one conclusion: the role of Boris Birshtein in post-soviet areas in the beginning of 90-ies was very significant, we can even say, to certain degree historical – because it seriously impacted further course of events in new independent states. However, what exactly that role involved is a secrecy covered with darkness. Incidentally, the head of “SEABECO” himself up to now remains a mysterious and intriguing person. And readers of this book, probably, will be first, who will be able to learn about Boris Birshtein from a person that could observe him not only in business, but also in everyday life. So, just another time, let’s give word to Alexandr Nezdolya:

“One of autumn days in 1992, I came to Evgeniy Marchuk with a report on operational issues. After listening to me, at the end of the conversation, he raised a totally unexpected for me topic. It was about a desire to enter Ukrainian market expressed by practically unknown to us businessman Boris Birshtein. According to Marchuk, this issue was already discussed at the President Kravchuk’s meeting, in which Prime Minister Leonid Kuchma and Presidential Adviser academician Alexandr Yemelyanov took part. Evgeniy Kirillovich said that Birshtein is a very prominent businessman, who wishes to work in the Ukrainian market, and that he has already established good contacts with government of the country. And, obviously, his arrival will be beneficial for the state, in view of the fact that it will provide a way out to the foreign markets. Because at that time Ukraine have not had any experience in international trade and to get through to foreign markets is not a simple task at all. Up to that time our country have not carried out an independent trade neither of metal nor of chemical products. At this situation needed urgent change. So, the issue of an exit to foreign markets became a business of a foremost state importance.

Naturally, prior to making such a decision, it was necessary to obtain maximum information about Birshtein. To that time he was already actively working on the markets of Russia and Kyrgyzstan. And SSU has sent relevant queries to Moscow. Shortly we received a reply signed by the Minister of Security of Russian Federation (RF) Victor Pavlovich Barannikov. Overall materials were positive, there was nothing compromising, the stress was on the positive role of Birshtein’s participation in development of Russian economy.”

And after some time – it was late autumn – Birshtein arrived in Kiev on board of his private jet “Fokker”. First he visited the Cabinet, and then he came to SSU.

“I, as a head of the body, met and escorted him to Marchuk’s office”, remembers Alexandr Ivanovich,”It was a man, who appeared to be about sixty years old, gray-haired and with unusually clever eyes. When I later learned that he really is two years younger than me and is only 47, I was very surprised. It could be sensed that this man lived a complicated life and have seen a lot in his days.”

During that Birshtein’s visit, details of his company entering the Ukrainian market have been discussed. The final decision was to be made at Premier’s meeting – then it was Leonid Kuchma. Alexandr Ivanovich was invited to the reception together with Industry Minister Anatoly Golubchenko and Vice Premier Vasily Yevtuhov, responsible for industrial branches. He came to Premier’s reception, expecting the conclusion of discussion. And finally the door of the head of Cabinet’s office has open and everyone emerged. Birshtein looked at Nezdolya and as if having remembered something, he turned back to Kuchma with words “Yes, the issue is discussed with Marchuk and we got his “OK”.

It was about the fact that considering the colossal state significance of the joint-stock group being created, it was necessary to provide for its security with the help of SSU.

And to accomplish this function it was necessary to send Colonel Alexandr Ivanovich Nezdolya to assume the position of the company’s Vice-President.

The personal archive of Alexandr Ivanovich stores a copy of the document sent by Vice Prime Minister Vasily Yevtuhov to the chairman of Security Service of Ukraine colonel-general Marchuk on 23 December 1992. It says that an international trade financial joint-stock group “Ukraine” for export-import activities has been formed in Ukraine, and two thirds of stock capital belongs to state enterprises. In order to provide management of the said group and for state control of currency influx into Ukraine, management of the JSG has made a decision about introduction of a post of Deputy Chairman for issues of assurance of state interests and operational interaction with the Government. Considering the abovementioned, the Cabinet asks to assign for these purposes a highly-qualified specialist and responsible employee of the Security Service of Ukraine – Nezdolya Alexandr Ivanovich, recommended by the Government and elected by the Board to the said position. Date. Signature.

Subsequent events confirmed the correctness of this decision. The JSG being founded was like a bone in a throat for too many. And for some – it was a succulent piece wanted to be eaten. Perhaps, many still remember scary time of the beginning of 90-ies, when criminal activity in the country had blossomed to unseen heights. And those, who at this time were starting their business, would not forget it. It is them, who felt all the “niceties” of racket with their own skin. Skin-headed “brothers” were considering themselves masters of life; and at that moment, impoverished and disoriented militia was either powerless or corrupted. In essence, state security was at that moment the only structure capable to protect from outbursts of bandits. And the fact alone that a vice-president of JSG “Ukraine” is an acting colonel of SSU was enough for bandits to forget about its existence. However, JSG “Ukraine” had enemies much more serious than bandits. Despite of such a solid State care, there were forces set to destroy it by any cost. Let’s see: what was JSG “Ukraine” and what were its goals?

For the start let’s turn to documents. Certificate, prepared for Vice-Premier A. Dyuba three years after creation of the JSG, gives us a general understanding about its activity (original language /Ukrainian - * translator note*/ and orthographic specifics are kept).

CertificateAbout activity of JSG “Ukraine”

Based on the assignment of the Cabinet, International joint-stock trade-financial group “Ukraine” was formed on the State initiative in 1992. Its purpose is to provide a balance of export-import politics of the State in Industry, control rational usage of currency influx and manufacturing resources, creation of relevant conditions for functioning of enterprises and organizations and optimal unification of their manufacturing and commercial interests.

International joint-stock trade-financial group “Ukraine” (JSG “Ukraine”) is created by eight Ukrainian enterprises.

On the Ukraininan side founders of JSG “Ukraine” are:Donetsk Metallurgical ComplexMetallurgical Complex “Zaporizhstal”Matallurgical Complex “Kryvorizhstal”Severodonetsk Amalgamation “Azot”Charkassy Amalgamation “Azot”Dneprodzerzhynsk Amalgamation “Azot”Odessa Near-Port PlantGorlovka Amalgamation “Stirol”, specifically, largest enterprises of Ukraine.

JSG “Ukraine” performs its activity according to the acting legislation of Ukraine, to be exact, laws of Ukraine “About Foreign Investments”, “About Enterprises in Ukraine”, “About Enterprises”, “About External Economic Activity”, and is governed in its work by resolutions and decrees of the Cabinet and the Supreme Council of Ukraine.

The authorization fund of JSG “Ukraine” (850.0 millions rubles) received a qualified investment of USD 500,000 from the foreign investor. The foreign investment is registered on 29 January 1993.

Main subject of activity of JSG “Ukraine” is performing operations of export and import of mineral fertilizers, chemical and oil-chemical products, pesticides, raw materials, materials for industrial and agricultural needs, purchasing of machinery, acquiring means of transportation, spare parts and other necessities of technical re-equipment and reconstruction of Ukrainian enterprises and expansion of industries.

With the Resolution No. 230 of 26 March 1993 the Cabinet of Ukraine included JSG “Ukraine” to the list of authorized organizations, which perform export of goods according to quotas, issued based on the state order and state contract, established by the Resolution No. 212 of 22 March 1993.

Using foreign currency obtained from the realization of state order and according to the list, agreed with Minsilgosprom of Ukraine according to the supplement to Resolution of the Cabinet of 26 March 1993 No. 230 and the supplement No.1 to the Order of the Cabinet of 15 September 1993 No. 741-p, JSG “Ukraine”, according to prices below average world market prices, performs import of raw materials for Ukrainian enterprises, and also tires, rubber-technical products, lacquer-paint, photo-chemical and other products.

During the period of its activity (1993 - 1994) exports of products through JSG “Ukraine” in 1993 have reached 180,570.657 thousands USD.

During the same year imports of products have reached 980,570.657 thousands USD.

During 11 months and 25 days in December 1994 there were 980,563.5 tones exported for the amount of 107,550.240 thousands USD….”

And now let’s look at what is behind those restrained lines of a document.

JSG “UKRAINA” AGAINST EXPORT MAFIA

Just after the break up of the USSR, in the post-soviet space the kingdom of lawlessness and absolute illegality has formed, and Ukraine was not an exception. Change of government, legislation chaos and break up of the formed for decades links between enterprises of USSR – all of this turned the situation in the country in a giant marsh, in turbid waters of which it was easy to fish for scoundrels of various scale and origin. The question of economy was the hardest one – the aim was defined by blurry words “to live wealthy as in the West”. And no one knew how to reach such a nonfigurative goal. Specialists-theoreticians could be counted using fingers and practitioners could not be found at all. There was only one way – to go ahead by the method of trials and errors. However, those, who were thinking by categories of not state, but personal interests, used those errors to move state money into their pockets.

On the frontier of international economics Ukraine appeared in the position of members of volunteer corps, who used weapons for the first time and end up in the encirclement by special assignment troops many times outnumbering them. Main riches of Ukrainian economy – metallurgy and chemical industry became a target of hawks of the entire world. Market illiteracy of directors of large enterprises allowed full-scale theft of Ukrainian resources. On the other hand, some directors and licensing government officers were inclined similarly. Up to this day many of them remember with sadness those ridiculous prices, by which they were selling products of their plants.

Mafia structures entangled enterprises-exporters with a thick spider-net, in which remained an enormous part of their revenue belonged to the state. Mechanism of action was structured as a Foucault’s pendulum – smart and simple: plant realized products to mediators at uniquely low prices and they sold it abroad at average world prices. Even then SSU followed facts when high-rank government officers and directors of large enterprises opened hard currency accounts in foreign banks and used currency resources for their personal purposes. It was then many of them, who later were called Ukrainian oligarchs made crucial steps towards creation of their capitals.

Formation of JSG “Ukraine” was actually making impossible the above-described operations. The structure obtained the general license and with that multiple Mafiosi and corrupts lost significant profits. It is not surprising that serious opposition to JSG “Ukraine” began at the stage of its creation. Then advisor of Prime Minister Sergei Osyka was informing his chief in information note of 4 January 1993: “… Vice Premier Minister of Ukraine V. Yevtuhov has given orders about preparation of necessary documents for provision of quotas and preparation of licenses for export of products manufactured by enterprises-founders of JSG “Ukraine”.

However, up to this moment ministries have not established order of products export for 1993. A number of enterprises has mega-ton manufacturing that is only export-oriented and can not realize on the domestic market products like ammonia, phthalic anhydride, some assortments of rolling, etc.

From the first days of 1993 Ukraine will not receive a significant amount of currency due to the fact that after preparation of quotas and licenses, there will be needed a lot of time for signing of contracts. On January 6 in Zurich a meeting of directors of enterprises-founders of JSG “Ukraine” with heads of foreign firms-buyers is already planned, but due to the aforementioned reasons, there is practically nothing to go there with.

Orders of Vice Prime Minister V. Yevtuhov are executed very slowly, although solving these problems would have given the opportunity to have in Ukrainian Government’s possession not less than 100 millions USD.

Advisor on external-economic issuesS. Osyka”

Having become familiar with this memorandum, Prime Minister Leonid Kuchma put on it the following strict resolution:

“1. Ministry of External Economic Relations (Gerts) Ministry of Economics (Shpek) Ministry of Industry (Golubchenko)Within the period of three days to complete execution of assignment of Vice Prime Minister V. Yevtuhov.2. Gerts, Golubchenko, Osyka, NezdolyaTo urgently prepare necessary documents for negotiations with foreign firms in Zurich on 6.01.933. Lobov, Chayka, OsykaTo report on execution on 6.01.93 to Yevtuhov, Serov, Shepelenko”.

And only after this explicit order of the Prime Minister the process of creation JSG “Ukraine” was finally completed.

Evidently, bringing an order to the area of exports of metallurgical and chemical industries was the utmost important, however not the only task of the JSG “Ukraine”. The main role assigned to it was the role of an ace-breaker, capable to lead our state to the world market. And for this purpose, our country needed partners that proved themselves as masters of international market economics. Boris Birshtein very well suited to this definition. Thus, his desire to enter Ukrainian market looked like a gift of fate to unacquainted with realities of world business captains of a rapidly sinking ship of Ukrainian economy.

War between Yeltsin and Rutskoy in Russia has not begun yet at that time and Birshtein has not become a celebrity of scandalous publications. He was considered a businessman of international class, close to higher political circles of Russia. Nevertheless, considering all importance of the planned project, SSU tried to additionally gather maximum information about the “SEABECO” company, using all of their operational capabilities.

All the gathered information was positive. Solidness of “SEABECO” was confirmed by Swiss banks and auditing agencies. They described Birshtein’s company as a reliable business partner, who “can be trusted and who would not take on responsibilities, which can be not fulfilled”. Positive references about the company also came from Moldova and Kyrgyzstan. It was obvious: this company and its boss could splendidly get themselves through mazes of world market, has sufficient working experience and adequate network of representations in various regions of the world. And also Birshtein had most serious plans towards Ukraine, looking forward to the future.

“This was confirmed also by Boris Iosifovich’s behavior”, says Alexandr Nezdolya, “This person immediately approached the President, Prime Minister, Members of Government, Security Service; he himself asked for power structures to control and protect activity of the JSG being created. Scoundrels do not behave this way. Profound decency of this man was obvious”.

Nevertheless, Ukrainian representatives acted by the rule – “Trust but make sure”. “SEABECO” owned only 35% of shares, 65% - belonged to the State. And the State was represented in the JSG by then Minister of Industry Anatoly Golubchenko and Alexandr Nezdolya. Activity of “Ukraine” was controlled by observation council, which included representatives of the Ministry of Economics, Ministry of External Economic Links, Ministry of Finances, Ministry of Industry, Fund of State Property and National Bank. Hence, it was very and very serious.

MASTER OF A BUSINESS EMPIRE

“My acquainting with Birshtein – is another witnessing of the fact that in my life I had luck for good and interesting people”, says Alexandr Ivanovich. “And Boris Iosifovich became a person, who during that period played one of key roles in my life. Soon after out short meeting in Kiev, I set off for a meeting with him in Moscow. And this meeting turned out to be a very unusual one.

I arrived at the Kiev Railway Station. Right by the car I was received by Birshtein’s representatives – two young men, real giants. For luggage I only had an attaché case, but they carefully took it too. Then almost to the platform drove in a government “ZIL”! One of the security men sat on the right and I sat on the left. The car took off – with siren light flashing and security cars surrounding us from all sides. In front was a new Volvo-940, there was only few of them in Kiev then, right and back were covered by “Nines” (LADA 2109 – translator’s note). The way I understood it from their style – those were former drivers of the 9th security service of FSB (Federal Security Bureau of Russia) – their experience was felt in the way they “cut out” an incoming traffic. I was simply stunned – it was the very real government cortege.

The route was planned in such a way that we drove along the “green corridor set throughout” – I understood it right away, because I myself have provided such corridors for heads of the country. At intersections, traffic lights were switched by the militia, in some places traffic militia was directing the flow and saluting upon our approaching. We

passed the Red Square and headed towards Vorobyevy Gory. I remember being so tense that my shirt got stuck to my back. I shut my eyes and thought: “Lord, maybe I am dreaming that I am driving inside a “ZIL”, which before I only saw in pictures!” I could not understand why is all this pompousness? What is to expect?

Nearer to Vorobyevy Gory all traffic militia was saluting as we passed. We arrived to a luxurious house. Enormous automatic gates have opened and the “ZIL” smoothly rolled around the circle to the porch. (Later, when a war broke out in Russia between the Parliament and the President, which end up with an attack on the White House, newspapers will write about this house as a compromising fact describing Birshtein, that is, at the time when the people were starving he was enjoying lavish life in this luxury. And this house, during soviet times, Central Committee assigned to Fidel Castro, so he could stop somewhere while visiting Moscow. And responding to accusations of foes, Boris Iosifovich fairly noted that under the communists Fidel Castro lived here for free on the account of soviet citizens, and I, as a prominent businessman, pay large rent to the State).

So, at the same moment, when the “ZIL” gracefully stopped at the central entrance, a door has opened and Boris Iosifovich has emerged, smoothing his mustache. All of this looked very impressive, and obviously was neatly calculated beforehand. We greeted each other as long-time acquaintances, shook hands.

He escorted me to an enormous hall. There was a table set for about eighteen persons. We sat down and he said: “You see how I entertain you in Moscow? You must do everything to receive me in Kiev the same way. The level has to be serious – just like the business we are starting”. At the breakfast we discussed how we would hold the first meeting of members of the joint-stock group. I spent the night in that house I left the following day.

Later, I visited Birshtein on numerous occasions. During one of those visits I got to be at a friendly supper with sauna. Boris Iosifovich himself was not there, that evening he was having supper with Yeltsin on a boat sailing along the Moskva River. So, Birshtein’s friends have gathered at his place for supper. At the end of the feast – it turned out to be a tradition – a kind of Olympics began. This competition required from its participants a mental and physical perfection. Main thing was to be an active participant and not a passive observer. His friends could not keep up with the marathon and have given up, and in the recognition of my victory they awarded me with a beautiful tie – symbol of the Victor. When Boris Iosifovich returned, he was pleasantly surprised and after seeing my tie laughed for a long while, saying that I put down the entire “Olympic” team on its knees and have not left anyone to exercise his own intelligence.

Finally, the time has come for Birshtein to visit Kiev. We, Ukrainians are hospitable people – if someone treats us to a drink, we try to return three. JSG “Ukraine” did not have any “ZIL”, but we cannot fall down flat – it’s the matter of the State prestige! Considering our contacts in government organizations and the militia, I got to obtain not one, but three “ZILs” and three cars of the SAI (State Auto Inspection) escort group.

Militia outposts along the route were also warned about seriousness of the event and saluted at all the intersections. Birshtein was pleasantly impressed – it looked like he did not expect this level of organization in Ukraine.

First, we visited the Cabinet, then the Ministry of Industry, from where we headed for the short meeting with Marchuk. And there – three “ZILs” stopped on Vladimirskaya surrounded at the front and at the back by militia cars with flashers. For Kiev, at that time, it was an unusual scene. I escorted Boris Iosifovich to Evgeniy Kirillovich, and when we entered his office, the phone rang. It was the Minister of Foreign affairs Anatoliy Zlenko called asking in astonishment: “Evgeniy Kirillovich, what’s going on? I heard rumors that there is a cortege driving around Kiev, some kind of government delegation arrived. And I as a Minister of Foreign Affairs don’t know anything about it!” Marchuk smiled and replied – due to the decision of the President and the Prime Minister, a prominent businessman is visiting us, details I’ll give you later. Though, perhaps we exaggerated it with “ZILs”.

Later, when Boris Iosifovich already left, Marchuk called me and expressed his dissatisfaction: “What are you doing, who needs this pompousness?” Of course, he was right. However, Boris Iosifovich was quite indifferent to pompousness. Sometimes this attraction became a stumbling block of our relationship. On these grounds now and again we had some misunderstandings.”

It was important at that moment for the young Ukrainian state to keep good relationship with Birshtein. People, distant from realities of international business, can be somewhat surprised: how relationship with a one and only person can be important to the entire state? The reason is that Boris Birshtein is not a regular person, but a head of a huge business empire, which possessed more opportunities and influence in the world than Ukraine at that time. And until our country has acquired practical work experience in the world markets, co-operation with him was strategically important, as well as tasks of JSG “Ukraine”.

This is what academician of the National Academy of Sciences (NAS) of Ukraine Yuri Nikolaevich Pahomov tells about JSG “Ukraina” and Boris Birshtein:

“Ukraine, unlike Russia, is a state without large business and therefore, a country left without one of main components of the entrepreneurial system. Hence business is a three-level phenomenon and empty space in formation of the top level is a fact of failure of the economy as a whole.

It seems like Ukraine has its own oligarchs. However, they, unlike ones in Russia, apart from rare exceptions, are illegitimate; and their root system is in shadows.

However, already in the beginning of 90-ies, at the dawn of entrepreneurship, a kind of a syndicate was operating in Ukraine, covering enterprises of a similar profile, - mainly chemical and metallurgical giants. This structure, called JSG “Ukraine”, burst first trail for country’s exit to foreign markets, and it was headed by a prominent Canadian

businessman Boris Iosifovich Birshtein, former citizen of the USSR and, very well likely, working abroad in business “by the assignment” of the USSR.

It is not just his vividness and scalability, energy and will, highest qualifications and wide knowledge that lead me to remember him, but also arising attempts to distort and discredit his work. This work was unique and useful particularly for Ukraine and especially in the area of the formation of the economic complex of the country at the dawn of its sovereignty.

I’ll begin with the event that in one of interviews to newspaper “Zerkalo Nedeli”, a known politician and peoples deputy of Ukraine Alexandr Mihailovich Volkov, while answering the journalist’s question about circumstances of his acquaintance with Birshtein, said I was the one, who introduced them, and it was about purchasing of Donbass coal for sale in Moldova.

In reality the pretext for Volkov and Birshtein to meet at first was different. Alexandr Mihailovich probably forgot. However about that quite exquisite episode I’ll talk later.

Different thing is important: there was a context in that question of a journalist, and it was because the personality of Birshtein led to suspicion. And this is the circumstance that causes to say something about this person.

Generally, anyone can get labeled, since our business is not without a sin. It is not an exception that he too, just like others, tried to fish in our muddy waters. However, I do not have any doubts in the other fact: this man was first to bring the beginning of high order, good structure and entrepreneurial culture into our disorderly external economics practice.

Boris Iosifovich and I met accidentally and unexpectedly for me. Once a young man, through whom one could see fitness and accuracy and also a huge energetic potential, had entered my office. As it turned out, it was Alexandr Ivanovich Nezdolya - Major General of State Security and Deputy Chairman of JSG “Ukraine”, which at the time was headed by unknown to me then Boris Birshtein.

The General won me over by his sincerity and ingeniousness; I liked him right away and from the very beginning this predefined our relationship and later on our friendship.

It turned out that Nezdolya was just appointed Deputy Chairman of the Board of the JSG, and it was a most crucial assignment of the Prime Minister Leonid Kuchma. The business itself was new to him, especially that in two days he was supposed to address directors entering the amalgamation. The request to me was to jointly work through the economical context of this speech, - that was what we did.

That was a start. And some two – three months later the same Alexandr Ivanovich asked me whether I wish to fly to the meeting of directors of JSG “Ukraine”, which was to take place in Zurich. I agreed and shortly after I was flying a plane to Switzerland together

with high-class industrial executives – directors of chemical and metallurgical enterprises.

Birshtein has met all of us in the airport. Coldly, we introduced each other. Boris Iosifovich appeared rather like a stern Highlander than a plainsman-Jew. We checked in at a hotel. Suddenly I learn that in the morning agenda there is my presentation. Topic was following: present situation and future prospects of branches represented by the directors. Up to now I don’t know how I got to be a presenter, however I don’t rule out that it was a trial of strength.

My first motion was to refuse – I was clearly unprepared. However I withheld myself from this step – could not loose my appearance and let Alexandr Ivanovich down. I did not sleep the night, no sources were available and I only could depend on thought squeezed out of myself. I was saved by the rule: not to say what they already know. Strangely enough, the presentation came out and everyone was listening attentively; at the end Birshtein highly evaluated my fantasies and offered to be his advisor. I agreed. From that moment on and up to Birshtein’s departure from Ukraine I have gotten the opportunity to observe a most unique person, whose gifts exceeded boundaries of business and realization of his project by far, which was very educational and give me an understanding, what world class business is like.

I must say that Birshtein’s business was not limited by Ukraine. He cooperated with enterprises of entire branches of industries in Russia, Kyrgizia and Kazakhstan. In Moldavia, Boris Iosifovich headed a Supreme Council of National Economy of Moldova, etc. Later, when there began an expulsion of Birshtein from the territory of the former republics of USSR; they began to call him “an octopus, which entrapped with its tentacles the entire area of former USSR”.

However, the reason for the expulsion (at least from Russia) really was a political one. Birshtein was accused in organizing an uprising of Supreme Soviet of Russia against Boris Yeltsin. His participation in these processes prior to October 1993 was real, however, from his words it came down to trying to make peace between Yeltsin and Hasbulatov with Rutskoy. Birshtein was very well acquainted with all of these high-level personalities; I myself have seen their photos together in his office. That was what destroyed him. At the inception, everything went smoothly, but then the Birshtein’s peace mission was “buried” (from his words) by Burbulis, and Boris Iosifovich became a fiend for Yeltsin’s circles. In Russia, they have taken away everything from him, which he took rather well.

So, as we can see, Birshtein is also a historical personality. But this – I agree with him here – is a misunderstanding. However, an indefatigable aspiration to play big politics, and especially with higher leaders of countries, was always in his way.

Yet, he is a businessman from God. Impressive was his knowledge in finest details – of course, from business prospective – of practically any manufacturing process, any area of activity.

Boris Iosifovich was perfectly familiar with not only conjuncture of the world market, but also with movement and origin of products flows. And God forbid if only someone of enterprise heads made some “left movement” beyond the scheme. Every ton of fertilizer sent “to the left” was always caught, sometimes even somewhere at the Indian coast, and bought out.

Such actions, besides other things, guaranteed support of conjuncture. Because what our enterprises could throw to the world arena in those times, could become a source of commercial chaos. Even now I am sure that Birshtein, in first stages, when there was not enough of market-commercial experience, brought to our practice not only the world-class experience, but also a culture of external trade. As I imagine, directors of factories have gotten a lot from BB (that’s how we used to call him) in first stages. He not only educated them in the area of the art of export-import commercial activity, but also he helped them as a human being. He immediately responded to problems that hit his colleagues: sometimes to provide his personal jet for transporting a sick to a Swiss clinic, or to help an enterprise with money in case of heavy need. By the way, my mediation in getting him acquainted with Alexandr Volkov happened just for the same sort of reason. During our meeting Boris Iosifovich was speaking to him about readiness to assist team of Donetsk Metallurgical Plant with money, he asked to meet someone, who could help to exchange $4 mln, which could help to take the plant out of stress (they had a strike). It was then I introduced Birshtein to Volkov. And coal affairs they had later.

Last contact with Birshtein was by the unexpected for me reason. Nezdolya and I were sitting in my office, when suddenly Alexandr Ivanovich’s mobile phone rung. It was Birshtein. He asked Alexandr Ivanovich, how to find me. He passed the phone to me. Birshtein, without any commentary, offered me to head JSG “Ukraine” (Nezdolya did not work there anymore; he occupied the post of deputy head of minister of industrial politics). Of course, I refused, having noted that such a position should be preceded by a long way. Evidently, it was an act of desperation on Birshtein’s side by unknown to us reasons. I have never seen of heard of him again.

However, one way or the other, I am sure that at the beginning of market economy in Ukraine, Birshtein’s influence on external trade processes was one of most significant factors.”

BATTLES WITHOUT RULES

Soon, the campaign directed at destroying of JSG “Ukraine” has started. It was a very real cold war, in which most various weapons were used: black PR of the press, sabotage of government officers and frankly criminal threats of physical reprisal…

Attacks were simultaneously in several directions: defamation of the very idea of the JSG creation, its foreign co-founder – group “SEABECO” and Birshtein personally. There were also threats and blackmail towards official persons, on whom decision making in regards to the campaign depended.

“One of the main theses of opponents of JSG “Ukraine” was the following: the JSG monopolizes the sphere of external economic links of enterprises and cuts off the immediate participants of manufacturing from the supply market”, tells Alexandr Ivanovich. “But this is an absurd! As if in Soviet times directors of Ukrainian enterprises had exit to the World market. In reality, before formation of the JSG, they did not have any experience of external economic activity at all. And their attempts to access international market independently only led to deplorable results for the State.

As for monopolization, it was indeed present, however, not within the country, but in the external market. As a matter of fact, Birshtein, Using his business-empire, won over world markets for Ukraine. For this reason, sometimes at his own loss, he bought over products of our factories-exporters, particularly “Karbomid”, which went from Ukraine “to the left” and sent it to the right place. This is a very experienced businessman, who understands that sometimes you need to loose small, so you can win big.

In order to discredit Birshtein’s personality, his opponents actively used popular then within the society topic of Party’s gold or money of CPSU. Logic of publications was approximately the following: where else Birshtein could get money, except from “treasures of CPSU”? Articles were without proof – it is impossible to prove something that does not exist, but their goal – to throw a shadow on the foreign partner of JSG “Ukraine”, and therefore on the entire Group, they fulfilled. Though in reality, no one gave Birshtein any money. Once he told me: “You know, Alexandr Ivanovich, to earn money is not a problem. Important thing is to use them right”. And he was correct. I knew many people, who have earned money and very quickly have lost them.

Right here, life proved once more how appropriate was the decision about operational support of JSG “Ukraine” by the SSU. We have held an investigation and received information that materials against “SEABECO” and its head were ordered and very large sums were paid off for their publications. We even were able to establish persons involved in it.

I must say that JSG “Ukraine” was a bone in a throat not only for dealers of domestic stock. Exit of our country to world markets not only decreased profits of many transnational kings of metallurgy and chemical industry. And when defamation of the corporation using black PR campaign failed, heavy artillery in the form of American senators Connie Mac and Bob Dowell joined the affair. They addressed Ukrainian government with letters saying that economical co-operation between Ukraine and USA can be affected due to operation of JSG “Ukraine”.

Besides that, we constantly felt counteraction from the side of Ukrainian corrupted government officers, who by any means counteracted Government’s decisions related to JSG “Ukraine” – from sabotage to blackmail and continuous threats towards official persons. Preparation of documents was delayed by various means; some parallel projects were being actively developed so the initiative could be taken over from JSG “Ukraine”. And the Minister of Industry Anatoly Golubchenko was directly threatened with physical reprisal.

For up to now unknown to me reasons, a well-known people’s deputy Grigory Omelchenko has also joined the war against JSG “Ukraine”. From the pages of newspaper “Nezavisimost” he proclaimed that political white-collar mafia reigns in the territory of Ukraine and demanded investigation. Investigation was carried out. General Procurator’s Office even opened a criminal case, but this happened later.

However, multiple inspections of financial-operational activity of the JSG on the side of tax inspection, control-revision management of Ukraine, procurator’s office and arbitration tribunals found neither tax evasion nor other breaches of legislation. And they could not find them. There were simply none. Checks established the following: all hard currency revenue, according to the acting then legislation was returned to the State budget within 90 days. All deals, made by the JSG, were acknowledged to be economically viable, not exceeding normal commercial risks and allowing sale of products of Ukrainian enterprises abroad at world market prices. I regularly informed Security Service and Ministry in Industry of Ukraine about the activity of the Group.

Despite the started cold war, in 1993 – 1994, via the JSG, the world markets could be supplied by Ukrainian products for the sum of over 100 millions dollars and also the necessary products could be imported into Ukraine by lower than average world prices. Enterprises created by the JSG quickly solved the entire set of problems related to promotion of metallurgical and chemical products to foreign markets. Successful was organizing and putting under the State control external economic activity of Ukrainian enterprises and increasing hard currency influx from this activity. In fact, the JSG has developed and created a model for other enterprises of how to perform external economic operations during a transitional period of economy.

Then why “Ukraine” still ended up stopping its operation? In my view, the answer is obvious – for the same reason, which is the root of all disasters and problems, which our people go through after coming of independence: prevailing of narrow-clan interests over the State ones in economic politics of Ukraine.

From the very beginning of its activity, the JSG voluntarily transferred from its funds significant sums in dollars by requests of organizations of state government for various kind of assistance to the State. In particular, to help the Cabinet, by the assignment of which the JSG, free of compensation, paid for sea freight for transportation of corn kernels, this totaled to a sum of over 10 millions dollars. The JSG paid for transport and port services of import into Ukraine of agricultural products for the sum of over 10 millions. For transit through the territory of Ukraine of Russian export consignment, 7 millions dollars was transferred free of compensation into the State Currency Fund for the Cabinet of Ukraine. However, appetite of government officers was growing tremendously. And when this “voluntary” help became simply impossible, since the already provided help put the JSG into a critical financial situation, the common language with the State began to disappear. Attacks and unsubstantiated accusations have started…”

MAFIA’S SENTENCE TO THE PRESIDENTIAL ADVISOR AND THREATS

TO SSU GENERAL

One of the most prominent Ukrainian economists, academician Alexandr Yemelyanov, who at that time worked as an Advisor to the President, assesses the work of the JSG “Ukraine” as follows:

“Creation of JSG “Ukraine” was motivated by a specific situation formed in Ukraine. The State at the moment was impoverished and hungry, and real resources were in hands of directors of large enterprises. Tax collection system was practically non-existent, there for a paradox situation was at hand: the State could not essentially use profits of its own state enterprises. A lever that could give the State, opportunity to manage that money was needed. And JSG “Ukraine” became such a lever.

JSG “Ukraine” sold goods manufactured by enterprises and received money for it. And the Cabinet used that money, and it also controlled, where to direct the received financial resources – for example, to purchase certain amount of pesticides, pay state debts, pay sea freight, etc. And when JSG “Ukraine” purchased, let’s say pesticides, it was the government, who managed their distribution (to whom, how many, at what prices). In other words, all purchased goods, in this case, pesticides, were handed over to Ministry of Agriculture, and it was ordered to pay according to certain prices. As a result neither financial nor material flows passed directly through the government, but it was holding hand on the pulse and performed management via JSG ”Ukraine”.

The new order of the State control of currency resources of large enterprises via executive commercial structure, which essentially was JSG “Ukraine”, was not accepted simply and evenly. Interests of many government officers, domestic and foreign businessmen and other influential persons were touched. Essentially, the entire process of fertilizers export, including usage of currency revenue, practically in its entire volume went under the State control. For this purpose, in the structure of JSG “Ukraine” a special position of the first vice-president with responsibilities for provision of state security of export-import operations was introduced. Colonel Alexandr Nezdolya, one of the most close and roundly educated colleagues of the Chairman of SSU Marchuk, was appointed for this position. He was soon promoted to SSU General, which stressed significance of the structure itself as well as of one of its main functions – state control of export-import operations, to be exact – currency and material flows.

The fact of assigning to the SSU General main functions in a commercial structure principally not related to the system of state governing, was and remains unprecedented itself. General Nezdolya immersed into learning of tricks of business and fairly fast could perform new to him activity surely, correctly and firmly. He “locked” on himself a larger part of all issues related to agreements for sale of domestic goods, purchase of imports, currency revenue, etc. There was a joke going around the JSG staff that Alexandr Nezdolya is the most “high-flying” entrepreneur among the colleagues-generals and the highest military rank among the colleagues-entrepreneurs.

Naturally, activity of the JSG as a whole and Alexandr Nezdolya in particular in providing “transparency” of the Ukrainian export caused a powerful counteraction from those, who lost the opportunity to fast and on a large scale enrich themselves on the account of shadow money. Attempts were taken to defame not only individual associates, but also JSG “Ukraine” as a whole. Mass media was set against. Lies, libel and scaring of the leading specialists were used everywhere.”

As Alexandr Ivanovich told authors of this book, Presidential Advisor academician Yemelyanov received anonymous phone call and was asked directly: “Where you want to receive your sentence, here or abroad?” And the following day Yemelyanov was to fly for a business trip to USA. Regarding these calls, Alexandr Sergeevich had to consult the then head of SSU Marchuk. The business trip of the academician was decided to postpone, ha was given a security and two cars of escort. Threats were serious, and for some time Yemelyanov had to go to work followed by security.

“Threats towards me could not be avoided too”, tells Alexandr Ivanovich. “One late evening in my car I got a special communication call, it was Marchuk, who was at that time the Chairman of SSU, and he asked me to urgently come to the office. It was after midnight. In Evgeniy Kirillovich’s office at the side desk, sat a young man in his 30-ies, who introduced himself as a citizen of a neighboring state. Without a preamble, in quite serious form, he declared that it would be rational for me to leave JSG “Ukraine”. I looked at Marchuk, but he was silent. And I briefly, but firmly explained to the stranger that I am at the State service and was sent by SSY to the Cabinet of Ukraine and appointed to the executive position in JSG “Ukraine”. And I will leave that organization only if I will be officially called out.

After that we parted everyone with his own opinion, although not for long. During one of the meetings of the Board in Zurich, the same person called me to my hotel room, insisting on an urgent meeting… The meeting did not take place, but the psychological pressure during the phone conversation was immense. Out of that I concluded that representative of SSU, escorting joint-stock group was obviously in someone’s way. And only Birshtein’s personal interference helped to stop pressure on me abroad. At home, praise God, it was much simpler – I could always rely on support and friends and colleagues from the Service.

Opponents of JSG “Ukraine” attempted to close it down or at least to strip it of some of the functions”, continues academician Yemelyanov. “Documents were falsified, libels were composed. The team of the acting Premier was working especially hard: they made active attempts to strangle the structure, in reality controlling material-currency flows. For this tens of various ways were chosen. For example, payments for execution of the Cabinet’s assignments were delayed, which left manufacturers without means, including salaries, and turned JSG “Ukraine” into a bankrupt. Circulation resources were wasted debtors and creditors debts reached incredible sizes… All of it was excellently coordinated and managed by certain interested government officers of highest ranks. This was the background, on which a large article of people’s deputy Grigoriy Omelchnko appeared in the “Nezavisimost” paper, in which all organized disasters were

explained by actions of “white-collar mafia”. The article looked like the one definitely made to order and was based on such a “definitive” thesis: there cannot be a clean business, on which only yesterday many sharers from power had an enormous money, cannot be because … just cannot be”…

Accused by Omelchenko offered him to meet to explain all questions. After many unsuccessful attempts, we finally agreed to meet with participation with journalists of papers “Kievskie Vedomosti” with its Editor-in-Chief Alexandr Shvetz and “Nezavisimost” headed by Vladimir Kuleba. However, meeting and discussion did not take place. Unlike representatives of the JSG, neither Omelchenko nor journalists of “Nezavicimost” have arrived to the planned meeting. As a result, “Kievskie Vedomosti” in the spot, where Omelchenko’s commentary was supposed to be published, and colleagues gave an empty strip with a question mark…

In this tense and difficult situation, Alexandr Nezdolya has revealed himself as a “knight without fare and reproach. He, on numerous occasions, visited tens of high offices,and was proving, explaining, and demanding. And as a result… he was “taken out” from the post of the vice-president of the JSG. Though with promotion – he was appointed the Deputy Minister of Industry (naturally, not for long).

Talking about Alexandr Nezdolya as a businessman, we cannot avoid mentioning his teacher – prominent foreign businessman Boris Birshtein (BB). He many times rose to greatest heights and was a very rich, powerful and influential man; heads of many countries of the world, especially ones of post-socialist orientation, had a great trust in him. Not once he suffered crush and had start over again. And he always succeeded!

Of course, Birshtein at that time was much more experienced that many of our USSR countrymen, including those, who assumed navigation of new independent states. With many of them BB had close relationship, he was an unofficial and often an official advisor of heads of states. And despite the fact of being a business partner and having as a main purpose growth of personal profits due to his business activity, BB often attempted compromise in the name of his personal ambitions in politics. Unlike many our former countrymen, he was mot greedy and differed by his high decency in relationships. I do not know a single fact when BB acted dishonestly towards someone of his colleagues, associates or partners.

At the same time we can’t forget that purposes of his cooperation, as a rule, were completely opposite to ours. I am remembering an episode, when a Ukrainian JV “UkrChemInvest” was being created in Switzerland as a resident of this country. The purpose of this structure was to attract the foreign capital to this branch of industry. In other words, a realization of an idea that currency for Ukraine can be earned not only by selling its own resources. Birshtein was promoting the fact that under the banner of an investment company, another commercial-trade structure for realization of Ukrainian chemical fertilizers in western market functioned.

I was strongly against that and together with Alexandr Nezdolya was insisting on a restriction of performing trade of resources. Many argued, including our countrymen and colleagues, but Mr. Birshtein, having assessed the situation, stated that this structure has to be profiled indeed and also using this it has to make money. In future, “UkrChemInvest” played a significant role in technical re-equipping of acting enterprises, building new plants and factories.

I would like to stress that as a teacher for the General as well as for all of us, BB was simply indispensable. Tempered, sincere, he always tried to instill his opinion, and in this regards, Nezdolya had it hardest. But in a short while everything fell in its places and Alexandr Ivanovich felt himself as a General also in dealing with Birshtein. Everything was honest and without “hide-and-seek” games.

“Transparency” was guaranteed, but within its boundaries there could not be disagreements on three main issues. First – prices of realization of Ukrainian goods. Second – time limits of return of money for goods. And here too – difference in vectors. And third – purchase, using the money obtained, of imported products. And again, prices, time limits, volumes…

As cooperation developed and professionalism of the JSG staff established and grew, practically all issues were resolved with complete understanding. The important thing was that no one tried to “con” anyone. An honest work was carried out and it could not help leading to wise compromises. It was this working atmosphere, requiring knowledge, experience and skills that became the environment, in which the security general became a real businessman.”

And in October 1993, a letter from Vice Prime Minister Yevgeny Yevtuhov appeared on the desk of the Chairman of SSU, which said approximately the following: in order to guarantee interests of the State, based on the recommendation of the Cabinet, a SSU associate Alexandr Nezdolya was directed to work in the structure of JSG “Ukraine”. Due to this, despite a strong opposition of competitors, numerous attempts to defame this organization, the JSG provided timely acquisition and supply from abroad chemical means of plants protection for agriculture and components, which are not produced in Ukraine, materials for needs of Industry, spare parts… It provided assistance in financing of a number of contracts for import of grain and strengthened positions of Ukraine in external market. Nezdolya informed the heads of the Cabinet in operational order about work of the JSG. Relevant measures were taken according to his suggestions, which allowed timely escape from significant mistakes in an external economic activity.

Since Major General Nezdolya has fulfilled main tasks in JSG “Ukraine” and further on this organization is capable to operate without the assistance of SSU, it was deemed rational to call him off from JSG “Ukraine”. And considering the gained experience, it is decided to direct him to work at the Ministry of Industry of Ukraine to perform similar tasks on a scale of the entire Ukrainian industry, given him relevant authority for fulfillment of his new tasks.

PARASITES PLANT “BUGS”

So, his work at JSG “Ukraine” has been left behind. Alexandr Ivanovich up to now remembers with gratitude that time and personal dealings with Birshtein, with whom he acquired a unique life experience, significantly broadened and enriched his outlook, practical skills and opportunities, which were useful to him not once further in his life.

“I worked with Boris Iosifovich Birshtein several months, but I will remember them forever”, says Alexandr Ivanovich. “It’s because he is an exceptional man, immensely hardworking and broad-minded. One could learn a lot from him – his concentration, ability to listen to a collocutor…He used to say: “When a person is beyond forty and has a certain life baggage behind his shoulders, one should pay attention not to his position or rank, but at his internal essence. Always ask yourself a question: who is in front of you? What does he carry? What does he want?

Due to this approach, Boris Iosifovich successfully built relations with many State leaders: Boris Yeltsin, Askar Akaev, Mirche Snegur… And in that, as a person of scalable thinking, he often did not notice details related to his closest surrounding and sometimes made mistakes.

Once we flew to a large meeting in USA. At the altitude of over 10 thousand meters we sat in a bar and drank a light wine. And he said to me: “I found a suitable man for the position of one of heads of JSG “Ukraine” – reliable, dedicated. If I open a door at this altitude and order him to jump – he will jump”. I replied then: “Boris Iosifovich, don’t rush with judgments; I should not teach you that life is a complicated thing, people do not show their real essence right away”. Unfortunately, I was right – in two years this man betrayed Birshtein. The latter had to regret his credulity.

Yes, JSG “Ukraine” had its external opponents, but it had internal ones too. Parasites were trying to get stuck to the bottom of the ship of the JSG, and main their task was to stuff their own pocket. They planted intrigues, tried to create conflicts between people – in a word, in all ways to create muddy waters, so they can conveniently “fish” for their own benefits. And they used elaborate methods. For example, they purchased recording devices in America and spread them across offices. Then they mounted those records and used them to discredit competitors. Once I also was in such a situation. My conversations with directors of enterprises, when I firmly insisted on State policy, stressing their attention on a principal approach to a foreign partner, were secretly taped. Then, they mounted the tape, so it looked like I am telling directors, what a nasty guy this Birshtein. And then they slipped the tape to Boris Iosifovich.

I must do justice, Boris Iosifovich turned out to be above those scoundrels and whisperers. During my visit to Kishinev he played back those tapes for me, we chatted almost the entire night. And we parted good friends.

When I already left the JSG, these parasites finally succeeded to gain trust of Birshtein’s and this became one of reasons of crash of JSG “Ukraine”. Later, after Presidential

elections, these people, who created capitals through a dishonest way, could gain trust of new President Leonid Kuchma and used it to expel “SEABECO” from the Ukrainian market.

Several years later, when, while heading elections headquarters, I had an opportunity to participate in big politics, I learned the following story.

When acting power began looking for compromising facts about other candidates, they decided to dig up Birshtein’s activities in Ukraine. They had a conversation with him at a high level and questioned him bluntly: “Tell us, Boris Iosifovich, did you give money to Mr. X? And what about Messrs.Y and Z?” In this situation, Birshtein has shown a highest decency, having answered: “I am a businessman; I earn money, and not small money. It is my right – to whom and how much to give. And the question, whether I have given money to people you are interested in, in my opinion, is unethical. Because after some time, you will leave the political scene, and other people will come to power. How would you like it, if they start asking similar questions about you? Would you consider me a decent person, if I had given such information about you?”

That is how appropriately Boris Iosifovich answered - as a decent man and a reliable friend. He understood with whom he was talking and beforehand he had foreseen the fate of his business in Ukraine after this conversation, however, he put decency above his personal interests. As a military man, went through battle training in Afganistan, I can surely say: I would go with Boris Iosifovich for a military mission.

Every man you meet in life – is a lesson, which one should learn. I often think what did I gain from knowing Birshtein? Was it big money? Business trip allowance I was getting there was just a bit more than my salary. Boris Iosifovich understood that I, as a worker of State Security would not compromise my conscience. I am grateful to him for something else – for that time, which he has given me, and for that knowledge and opportunities that I got from socializing with him. And also I am grateful to fate for a chance to become acquaintances and friends with such scientists, as academicians A.N. Pahomov and A.C Yemelyanov. And also to such “aces” of industry as they say, gold fund of director’s corps, like V. Boyko, A. Burlyanda, V. Gorbatko, B. Raykov, A. Levchenko, B. Leshchina and N. Yankovsky. Knowing them opened up a new world to me and also very much influenced my world outlook.

During that difficult time, I, just like all soviet people, was going through a deep outlook crisis – if for thirty years you were a communist, it is very difficult to change your attitude just like that. My traveling around the world with Birshtein helped me a lot during that period. Work in the JSG required business trips abroad – I had to travel often. And I have seen totally different, unknown before life. I got to know former statesmen of various countries, “sharks” of big business and also ordinary employees… New knowledge and impressions made me deeply think over and assess the past. To realize that our society for decades was deeply ill and it has to be treated, reformed and allowed standing on its feet. I understood that out hardworking people deserve much better life.

Under influence of all that I have seen, blinders of communist ideology began to fall. I have not just understood, but have felt that what we were building was something wrong, that people separated from the world by locks and iron bars cannot be happy. That a one-party system assists development of society up to a certain moment and then becomes an obstacle. That the most valuable thing for a human is his freedom and no one should be persecuted for thinking different, if he does not break laws.

I often with sympathy remember some of my colleagues, whose mentality remained the same. Many of them, after not accepting changes, have gotten very ill and from strong military officers they turned into grumbling old men. Sometimes I am sorry for them, because the nostalgia for the past, lack of understanding the rationality of changes and crash of CPSU will hunt them for many years and possibly, for their entire life.

Time puts everything into places. Boris Birshtein, whom they have tried to portray as a shameless scoundrel in Russia and Ukraine, is known today throughout the world, not only as a prominent businessman, talented manager and economics advisor of presidents of several countries of the CIS. He – is a world-scale scientist, Doctor of Sciences, professor, academician of North American Academy of Informatiology at the United Nations and member of the New York Science Academy,

He is known as an author of a number of publications on philosophical and economical topics. Recently, his new book “World food crisis. Problems and judgments” came out. This is a global scientific work dedicated to economical, social and political aspects of such a terrible human problem as famine. Birshtein not only analyses reasons of this sad phenomena, but also he tractates economical, social, political and moral aspects of this problem and suggests a way to its resolution.

He is an author of a number of articles, monographs, publicist books, in which he shares his experience in the area of development of technologies of economic reforms for countries, where process of transition from socialist to private property runs painfully and lengthy. His articles about shadow economy and about how to make it work for the state drew interests of economists-practitioners and scientists in many countries. International Academy of Informatization at the United Nations, for example, highly evaluated economic principles being the foundation of proposed by him systems of utilization of means and powers of shadow business for development of structures of state management. And his works in the area of public relations, dedicated to role of mass-media as instruments to provide state security, and also development of strategies of psychological contacts of individuals in the system of public education and state construction, became topics of symposiums of the Academy of Informatiology.

And in Russia, a book of ex-vice-prime-minister Alexandr Rutskoy has been published. He gives a lot of facts about Birshtein – for example, that mainly due to the effort of Boris Iosifovich, bloodshed in Trans-Dnister Region and Moldova was prevented.

Not too long ago, my library got filled up with books, author of which is Boris Birshtein. And on the desk in my office, as a memento about our work together on a project of state importance and about the Man of big heart, mind, honesty and decency, there is a photograph of BB, like we used to call him among us.