Bloomberg: Ukraine auditing 10,000 buttons torments opposition businesses

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Sept. 21, 2012, 8:25 a.m. | Business — by Bloomberg

Head of the State Tax Service of Ukraine Oleksandr Klymenko.

Yaroslav Rushchyshyn likes to call the antique clothing irons displayed at his Ukrainian factory the “backup line,” for when authorities punish him for criticizing government policies by shutting down the power.

He’s only half joking. Rushchyshyn’s Lviv-based Jsc Trottola, which makes women’s garments for such retailers as Inditex SA (ITX)’s Zara chain, has endured what he says are spot tax audits and truck inspections. It’s an example of state pressure that “kills off investment” to the former Soviet republic, delays production and erodes profits, he said.

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