XXI Century Strikes JV Agreement in Kharkiv

XXI Century (XXIC LN: N/R) reported on Friday that it setup a joint venture to develop real estate projects in Kharkiv with businessman Aleksey Yaroslavskiy, former member of the Verkhovna Rada. About USD 70-100 mln is planned to be invested into XXI Century Kharkiv by yearend 2008. XXI Century holds an option to buy out Yaroslavkiy’s stake or exchange it for a stake of no more than 5% in XXI Century in three-five years after realization of the first JV project. Joint ventures with local businessmen in regional markets are a necessity for their contacts with local authorities, which helps to navigate the non transparent regulatory & permit environment.