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Postcard From Odesa (Odessa) Ukraine. Re-Emerge, Re-Engage, Re-Build, And Rebound. A Political Commercial Time Bomb Is Ticking- Government Needs To Get Ahead Of It.

Postcard From Odesa (Odessa) Ukraine 

Re-Emerge, Re-Engage, Re-Build, And Rebound 

A Political Commercial Time Bomb Is Ticking- Government Needs To Get Ahead Of It 

The Young: Doing What They Do- Trying To Be Better Than They Were The Day Before 

From one resident of Odessa, who confides the perspective may be controversial: “The name “Odessa” was chosen by its founder José de Ribas, who was inspired by the Odyssey.  Therefore, the root of the name is Greek.  When we write “Odessa” with two “s” we pay a tribute to the Greek culture and the Italian genius, which are in the DNA of the city.”

Departing on Ukrainian Railways late evening on 3 March 2024 from Kyiv Central Station and arriving the next morning to the southern port city of Odessa (Odesa), Ukraine, the overnight train from Kyiv, Ukraine, departed as scheduled (which is normal) and arrived as scheduled (which is normal)… to the sun rising over the Black Sea. 

First Class compartment travel on Ukrainian Railways continues to improve- not that it had issues.  There are new sleeper carriages, comfortable sleeping surfaces, packaged bed linens, water, wash cloths, and the at-any-time traditional tea service from an always engaging onboard team. 

What was the most startling change in Odesa?  For two years, access along an embankment overlooking one of the grains loading port facilities was restricted.  Hundreds of meters were patrolled by soldiers; lengths of yellow tape were used as barriers.  There were signs “Photography Prohibited” placed every ten meters.  Those signs are no more.  The yellow tape remains.  The soldiers are now one bored-looking soldier. 

Those signs represented fear.  And appropriately so.  The absence of those signs represent confidence.  The yellow tape is a reminder of fear.  Permitting photography of port facilities is a message from the government of Ukraine and the armed forces of Ukraine to the citizens of Odesa.  Be more confident today than yesterday- and be more confident tomorrow than today.     

Like Kharkiv, the second-largest city in Ukraine, Odessa, the third-largest city in Ukraine, has been targeted repeatedly by the armed forces of the Russian Federation since 24 February 2022. 

War Timeline 

  • On 24 February 2022, the armed forces of the Russian Federation invaded and further invaded the territory of Ukraine in what Vladimir Putin, President of the Russian Federation (2000-2008 and 2012- ), defined as a Special Military Operation [SMO] then on 22 December 2022 he redefined as a war.  The initial invasion of Ukraine by the armed forces of the Russian Federation was in part from the territory of Belarus.    

  • The war between the Russian Federation and Ukraine did not commence on 24 February 2022.  The roots began their trajectories on 20 February 2014 when the armed forces of the Russian Federation invaded the Crimean Peninsula and the area known as the Donbas Region (Donetsk Oblast and Luhansk Oblast).  

Similarly to Kharkiv in 2024, Odessa in 2024 continues to re-emerge, re-engage, re-build, and rebound

The spring weather has returned early to southern Ukraine, as it has to all areas of the country.  One welcome gift.  Farmers may commence preparing their soil.  Outdoor work may begin- repairs to roads, bridges, and other infrastructure.  Children feel the warmth of the sun.  Joggers and bikers have additional moments for maintaining, training, and the mind clearing that exercise provides.  The phrase, “Hope springs Eternal” needs a good outcome. 

Yet, with the increasing amount of sun and increasing temperatures there is also the reminder of war- and its daily offerings of death and destruction.  Like a daily buffet from which there is nothing appetizing. 

Last week in Odessa were some of the most ferocious moments this space has experienced.  For nearly two hours on consecutive nights near the coastline, the port infrastructure, incoming drones, missiles, and rockets were met with barrage after barrage of outgoing machine gun fire, missiles, and rockets.  Searchlights- think World War II and the city of London attempting to protect the population from V-1 and V-2 rockets launched by the armed forces of Germany from the European Continent- scanning the sky hoping to provide better targeting.  The impact of drones, missiles, and rockets- pounding, thuds, shockwaves, shaking of even the most robust concrete structures. The outgoing tracers in red and orange colors- volley after volley.  From a science fiction horror movie wrote one viewer of video the next day. 

The armed forces of Ukraine need ammunition.  No secret.  With that knowledge, while watching the incoming and the outgoing those nights in Odesa, listening for and hearing the incoming and the outgoing, the thoughts were: Are those men and women in the armed forces of Ukraine holding back some of what they want to launch?  And, might the one missile or rocket or other projectile they decided not to use be the reason a building is destroyed, a business is destroyed, a school is destroyed, a child dies?     

Surprisingly, commercial construction in Odesa has returned.  Not fully-throated, but noticeable.  Particularly at hotels and apartment buildings.  Seeing expensive vehicles on the roads and in parking lots is not unusual- and some of the young drivers drive too fast and their modified mufflers make too much noise- and emit sounds similar to a missile and rocket.  Expensive restaurants have customers.  Expensive stores have customers. 

As in other cities in Ukraine, businesses have staffing issues.  There are not enough men and women who want to work in the manufacturing and service sectors- a problem which commenced in earnest globally in 2020 with the COVID-19 pandemic.  However, the service levels at hotels, for example the M1Club Hotel, remain consistent with team members striving to a level of service challenging in the best circumstances.   

The customer demographic has also transformed.  This too is not solely impacting Ukraine.  It is a change from old money to newer money.  Customers and guests are not as nice as they were prior to 2022 and prior to 2020.  Less polished, flashier, believing rudeness towards those in service is a status symbol.  Appropriate gratuities long since vanished. 

There is a ticking commercial time bomb that the government of Ukraine needs to address- and address urgently.  There are tens of thousands of citizens of Ukraine who in 2020 and 2021, or earlier, had provided deposits and/or paid in full to developers (Ukraine-based and non-Ukraine-based) for apartments to be constructed.  Developers used “force majeure” in 2022 to suspend construction.  The overwhelming majority of those developers continued to suspend construction in 2023 and thus far into 2024. 

  • Cornell Law School: “Force majeure is a provision in a contract that frees both parties from obligation if an extraordinary event directly prevents one or both parties from performing. A non-performing party may use a force majeure clause as excuse for non-performance for circumstances beyond the party's control and not due to any fault or negligence by the non-performing party. However, mere impracticality or unanticipated difficulty is not enough to excuse performance. Indeed, courts generally do not recognize economic downturn as a force majeure event. This is because economic hardships occur regularly in business, and as a result, may be appropriately and preemptively dealt with by allocating its risk through the terms of the contract. As such, force majeure events are often labeled as "acts of god" and include both natural and man-made events like fires, floods, storms, war, and labor disputes.”                            

There are now questions about the availability, location, and security of funds which were provided to developers.  Are the funds safely in financial institution escrow accounts with oversight by attorneys and accountants?  Have the funds been used for other purposes without informing customers and receiving their written approval? 

Alas, a reminder of spring 2024 in Odesa…. Youth outdoors at a skateboard park… from sunrise to through sunset.  Doing what they do- trying to be better than they were the day before.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT