KHARKIV, Ukraine – The Kharkiv auditorium where the recent Invest-Kharkiv International Forum took place is gray. Almost all of the speakers were locals or hired hands from Kyiv. But when homegrown tycoon Oleksandr Yaroslavsky took the stage, everyone perked up.
“What if Kharkiv doesn’t get picked to host the Euro 2012 [football] tournament,” a journalist asks the stylishly-dressed billionaire. “Not getting it is not an option,” Yaroslavsky, 50, answered.
If he is confident about Kharkiv, the city feels the same way about him.
Yaroslavsky’s litany of lucrative deals includes the 2006 sale of a 51 percent stake in UkrSibbank to French BNP Paribas Group for an estimated $700 million; he later sold yet another stake in the bank. According to official statistics, Kharkiv Oblast has received $2 billion in foreign investment since Ukraine became independent in 1991. That means roughly half of this total is attributable to the sale of UkrSibbank.
Now the tycoon is leading Kharkiv’s charge towards Euro 2012. Once the headquarters of Soviet design bureaus and a hub for high-level education, Kharkiv – with nearly 1.5 million residents – is now a city of bankers and outdoor markets.
But in order for the economy to continue making its transition from dependence on large state enterprises such as turbine factory Turboatom and the Malyshev military tank plant, it needs investment.
And that’s where Euro 2012 comes in. The prospect of hosting a sporting event has united the city’s often-warring business and political leaders behind a common cause.
“The fact that we got representatives of the governor’s office (nominally loyal to President Victor Yushchenko) and the mayor (nominally loyal to the Party of Regions) on the same panel tells you how important this is for us,” said one of the event organizers.
Apolitical and by far the area’s wealthiest person, Yaroslavsky has already invested Hr 1.2 billion into preparing his city for the event, with most of the money going towards building and reconstruction of the airport and the Metalist Stadium, which re-opened its doors to great fanfare on Dec. 5.
“Mr. Yaroslavsky is a coordinator and key investor in Kharkiv’s preparation for the Euro 2012,” said Yelena Derevyanko, an adviser to Yaroslavsky in his capacity as president of DSN Group.
Kharkiv still needs another $1 billion to complete preparation, according to figures provided by the oblast administration.
As is the case with the other three host cities in Ukraine, a shortage of hotel space seems to be the biggest problem. Oleksey Tokar, regional coordinator for preparations, said that as many as 500,000 visitors could descend on the city in June 2012. “If you take into account that we’re located right next to Russia, you can imagine what kind of dust will be kicked up if Russia plays here,” he said.
To cope, officials plan to put up ticketless guests in tent camps, while ticketholders may have to settle for space in dormitories or sanatoriums. Kharkiv’s metro line, one of only three in Ukraine (along with Dnipropetrovsk and Kyiv) is expected to handle intra-city travel.
But most of all, Kharkivites are depending on their very own oligarch.
“Oleksandr Yaroslavsky has the situation under control,” Derevyanko, the tycoon’s adviser, said.
Kyiv Post staff writer John Marone can be reached at [email protected].
