Archive for May 21st, 2010


A few words from President Yanukovych

May 21, 2010

Speech from Kyiv to Medevedev and Kyiv ecnonomic forum………..

Dear Dmitry Anatolyevich!

Dear participants of the Forum!

I would like to note with satisfaction that we return to the tradition of holding joint Ukrainian-Russian economic forums.

The path of dialogue and cooperation is the only correct choice in the conditions of systemic crisis that has engulfed virtually the entire world.

We, of course, regret the lost time and opportunities. But thanks to lessons learned, we became pragmatic and focused.

I would like to dwell on some of these lessons.

Lesson One. The global crisis has once again demonstrated the vulnerability of even the strongest and most developed economies.

The United States, European Union, Japan, Great Britain are all through strength test. All the countries of the “big twenty” are experiencing losses.

The crisis has again demonstrated that the positive outcome is possible only with mutual responsibility and support.

Being strategic partners, Ukraine and Russia at the same time are large and reliable partners of the European Union.

In the current very difficult circumstances for the European Union, we must maintain the stability of relations, particularly in the crucial energy sector.

I am certain that our agreements in this area will be an additional guarantee for all EU countries and allow Ukraine to consistently conduct deep reforms in the energy sector.

Lesson Two. High level of interdependence of national economies in a globalized world requires us to elaborate new approaches to long-term national development planning.

It is critical for Ukraine that our bilateral agreements on economic cooperation “worked” for national development projects that we are preparing in the framework of the program of reforms. And our actions will always be open, clear and predictable for our partners in the West and the East.

Lesson Three. Economic processes are directly affecting the state of affairs in security area.

Old stereotypes often prevent us from reaching a new level of relations. I am sure that new approaches to security must be associated with guaranteeing security of development, rather than with preservation of the so-called “old order”.

Ukraine conducts non-aligned policy to prevent appearance of new dividing lines in Europe, as well as to strengthen and enhance development of the whole European space.

Our task is to elaborate new mechanisms of interaction in the area of security with the member countries of military alliances, non-aligned countries and countries with neutral status.

This algorithm can be the basis for a modernized architecture of united and indivisible security in the Euro-Atlantic region.

The principle of collective solving geopolitical and security issues will be decisive in the future post-crisis world.

With Dmitry Medvedev, we have offered new initiatives on security in the Black Sea region and settlement of the Transnistrian problem. In these incentives we proceed from the principle of collective and concerted action by all the interested parties.

Lesson Four. The European choice of Ukraine remains just a dream until deep social-economic reforms are realized.

We have wasted much time because of the instability and ineffectiveness of government in the past years. Now we must catch up and it is not easy.

Ukraine has a real chance to conclude negotiations and sign the Association Agreement with the European Union in a short time and solve the problem of visa regulations and expanded free trade area establishment.

I created the Committee on Reforms, which involves leading Ukrainian and foreign experts, representatives of regional authorities and national science.

In early June we will present a program of economic reforms in Ukraine. The “new wave” of reforms will promote a new quality of economic growth, efficiency of competitive market mechanisms, economic attractiveness of Ukraine for investors.

The package of Ukrainian reforms is aimed at long-term perspective and is designed to reach an ambitious goal – to create modern competitive economy, new infrastructure, efficient social-oriented state, high quality of life.

We have set a goal to conduct systematic modernization of the country, turn it into a strong and prosperous republic.

At the same time, we must admit that we begin the race with a “low start”.

Without exaggeration, last year was the most economically difficult for modern Ukraine. We decided to conduct a comprehensive audit of public finances with the help of international companies. Despite the difficult economic and financial situation, I am confident that we will adequately overcome all the existing difficulties.

In this brief period we were able to achieve significant changes for the better. First of all we stabilized the situation in the economy. In the first quarter real GDP growth was 4.8%.

Between January and April the industrial growth was 12,6%, agricultural – almost 5% and turnover – more than 16%.

Inflation rates were significantly decreased and exchange rate stabilized.

The growth of export over import has begun; the situation with foreign trade and balance of payments of the country is improving.

The Parliament approved the State Budget of Ukraine for 2010, which is based on realistic figures.

I would like to emphasize that the spending on implementation of scientific and technological innovations and investment projects in aerospace and in rocket-space industry, energy and agriculture was tripled by this budget.

We seek to reestablish cooperation with the International Monetary Fund and the World Bank.

Ukraine’s sovereign rating is increasing. Our country is again perceived as a solvent state.

According to our calculations, such dynamics of Ukraine’s economy growth will last until the end of the year, but the next year we should start within the Program of Ukraine’s development until 2020. It means that this year we must elaborate such a program.

The anti-crisis measures program has started working, and it helps stabilizing political and economic situation in the country.

Implementation of large infrastructure projects should play an important role here. Including those, organized in preparation of Ukraine for hosting EURO 2012.

The appropriate legislative work is already done.

In the same context I would like to indicate that from our part we are ready to contribute to preparation for the Olympic Games 2014 in Sochi.

Dear Dmitry Anatolyevich,

Dear Colleagues,

Without a doubt, deepening and broadening of relations with our strategic partners will promote effective development of Ukrainian economy.

First of all, it refers to the Russian Federation.

Unfortunately, last year the trade turnover between our countries fell by more than 35%.

However, now, when the new government is responsible for the situation in the country, the trade turnover has almost doubled compared to the same period last year. And the primary task for our governments is at least to return it by the end of the year to the level we had before the crisis hit. And we believe it is quite possible.

We are optimistic about the prospects of economic cooperation between Ukraine and the Russian Federation. The main thing is that we returned to strategic partnership, provided by the Treaty on Friendship and Cooperation. New opportunities for transition to a qualitatively new stage of interaction between our countries are now opened. I mean upgrading the whole spectrum of trade and economic relations, development of innovative and investment directions and bilateral cooperation in economy.

Yesterday, the Presidents of Ukraine and Russia chaired the third meeting of the Ukrainian-Russian Intergovernmental Commission. The work of this important institution has been resumed after almost a two-year break.

We created atmosphere of partnership and trust that provided necessary conditions for constructive and effective work to address the entire range of important issues of Ukrainian-Russian cooperation.

Following the meeting, together with President Medvedev, as Co-Chairmen of the Commission, we instructed the Governments of Ukraine and Russia to elaborate a number of practical steps to fill our bilateral relations with substance and develop “roadmaps” of mutually beneficial initiatives in priority sectors of economy.

In our opinion, this applies to:

– Development of Ukraine’s capabilities of oil and gas transportation to the European Union. Long-term strategy and mechanisms of its joint implementation, coordinated with the Russian and European partners, must be developed;

– Cooperation in energy sector;

– Cooperation in high-tech industries, in which both Ukraine and Russia have experience and achievements, such as space exploration, aircraft building, biological and information technology, production and service cooperation, joint actions at markets of the third countries;

– Creation of favorable conditions for trade cooperation through synergy of customs and tax authorities, joint technical and legal support of trade-flows, combating smuggling, unfair competition and “laundering” of proceeds;

– Regulation of labor migration and provision of social protection to our citizens working abroad.

In our opinion, these and other promising areas should be the basis for long-term comprehensive ten-year Program of Economic Cooperation between Russia and Ukraine, as well as the Program of Bilateral Interregional and Border Cooperation.

In addition, we agreed to hold the Russian-Ukrainian Interregional Economic Forum under the patronage of the Presidents of Russia and Ukraine in 2010 in Krasnodar Krai and another, in 2011 in Donetsk region, as well as Russian-Ukrainian Business Forum on infrastructure projects and modernization issues in October 2010 in Kyiv.

Coordinated work of all departments of the Ukrainian-Russian Interstate Commissions produced a package of signed bilateral documents. In particular, we signed the agreement on demarcation of the Ukrainian-Russian state border, which will enable us to proceed with practical delimitation of its land part.

The Intergovernmental Agreement on cooperation in utilizing and development of the Russian global navigation satellite system GLONASS and a number of interdepartmental documents on cooperation in education, science and culture were signed.

Commission’s meeting confirmed that both Ukraine and Russia are ready to continue the established trustworthy and fruitful dialogue at all levels of interaction without exception, and aim to achieve specific mutually beneficial results.

Thank you for your attention.


Getting busy on the foreign policy front!

May 21, 2010

Well dear readers, I can’t remember the last time Ukraine has been so busy when it comes to foreign policy regardless of whether it is with swift decision makers like Russia, China and the USA or the slothes of the EU.

Aside from the RBSF deal, gas deal, possible cooperation in aviation, space, energy and technology with Russia……all happening at a pace, there is also China wanting to carry out joint ventures with Ukraine in similar fields, as well as other high tech areas, giving up highly enriched nuclear material to please the US, active and consistant negotiation with the EU on the free trade agreement and visa free travel…….not to mention ongoing and seemingly fruitful talks with the IMF, WB, EBRD and European bank.

Add to this visa free negotiations with Israel and Turkey to name but two, active reengagement with the CIS, the allowing of several NATO exercises on Ukrainian soil very shortly plus official invitations to Vietnam and other eastern nations and it seems things are moving in many directions at a serious pace……or at least the pace that others involved in the bilateral negotiations can move at.

Now many will not be happy with certain policy decisions but it seems very difficult to question the energy that is being put into carving bilateral relations globally.

Let’s just hope that the majority will be good decisions with Ukrainian interests at heart.

Time will tell!

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