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Speech of First Vice-Prime-Minister – Minister of Economic Development and Trade of Ukraine Stepan Kubiv during the Forum for International Cooperation "One Belt - One Road"
16 May 2017 11:14

Deepening Trade and Economic Cooperation along the Belt and Road for Unimpeded and Efficient Trade and Win-Win Development

 

Dear Mr. Chairman!

Dear Chinese and foreign partners,

Ladies and Gentlemen!

 

On behalf of the Government of Ukraine and the Ukrainian delegation I’d like to thank you for the invitation to participate in the High Level Dialogue of the Forum for International Cooperation "One Belt - One Road" and for your hospitality.

Almost three years ago as a result of the Revolution of Dignity people of Ukraine changed the paradigm of our country. People has chosen the European direction with the dream of a modern and fair social and economic development.

With certainty I can say that Ukraine's economy has overcome the consequences of a prolonged economic crisis over the past year.

The reforms of the Government of Ukraine aimed to deregulation of business activities, improving the business climate, improving the management of public investments and public sector of economy played very important role in it.

The Government was able to achieve macroeconomic stability and restore economic growth due to its deliberate steps, gradual renewal of damaged financial and industrial relations, formation of new emphasis in directions of economic activity.

2016 become the year during which industrial development has become our priority. And I am sure that Ukraine has all the prerequisites to develop its authentic industrial grandeur that will provide jobs, decent wages, production of goods with high added value, which will find a market in the world.

Ukraine can not stay apart of the global project "Belt and Road" - it is an integral part of this great project territorially and geoeconomicly. In Ukraine the routes from east to west and from north to south converge and cross. Ukraine has been and remains a reliable partner for those who respect its sovereignty, history, culture and people.

In the concept of Ukraine's participation in the "Belt and Road" project, the factor of interdependence and additionality of the economies of partners is inherent, which is the most important in the modern world for full interaction between states.

The paces of development of the agricultural sector of Ukraine, which ranks the third in the world in the export of grains, as well as confidence to Ukrainian production, which was formed recently in many parts of the world and particularly in China, affirms our joint capabilities. Ukraine may double the volume of agricultural production, but it needs some serious investment, particularly in the deep processing of environmentally friendly agricultural raw materials.

Ukraine was and still is the developer of a number of successful and historically important fundamental technologies in such areas as aviation, space exploration, heavy and power engineering, mining, development of new materials.

It is pleasure to note that the development of high-speed railways started in China by using the equipment and technology of welding rails, developed by world famous Institute of Electric Welding named by E. Paton. Today's technologies of this Institute enable to weld materials in space and even living tissue with high quality and cheaply.

"Antonov" and "Motor Sich" brands are known in China and other countries of the world as well as to everybody related to aviation.

Due to high its intellectual property Ukraine also successfully develops advanced IT and communications systems, noted by Chinese companies - global players in this field, that are working in Ukraine, for example one of the seven foreign research centers of "Huawei" corporation is located in Ukraine.

We offer the world those products in which we have always been strong and talented.

In order to build the "Ukrainian section" of New Silk Road we are ready to establish cooperation between the enterprises of Ukraine and China, develop product sales in the markets of the European Union, leap forward cooperation on modernization of Ukrainian industry and replenish shortage of production capacities caused by the changing of situation in the east of Ukraine.

We are ready to make efforts to develop and upgrade transport infrastructure in Ukraine in order to improve conditions, increase throughput and speed, improve the competitiveness of multimodal container transport connections in the direction China - Western Europe - China through Ukrainian territory. It is possible to implement it on the basis of public-private partnerships and other modern forms of cooperation.

To form additional opportunities for transit flows within the frames of Chinese project of the "Belt and Road" it is appropriate to implement a number of logistic projects such as the construction of port terminals, elevators, rolling stock for the transportation of agricultural products, cold storage warehousing.

Ukraine is a country with a well-balanced power system, the leading European country in the field of nuclear energy and the prospect of the development of alternative energy. This is one of the areas of development of investment cooperation with China in the framework of "One belt, one Road" initiative. On the agenda there is implementation of projects of clean energy based on agricultural production and use of renewable energy sources. We have also a high interest in mutual relations in joint projects aimed to developing of nuclear energy and atomic-industrial complex by expanding scientific cooperation in the peaceful use of nuclear energy, exchange experience on design, construction, operation and maintenance of nuclear power plants, as well as development, manufacture and supply of equipment for nuclear power plants.

Speaking about the investment component of cooperation in the frame of "Belt and Road" project I would like to underline such an important issue as the use of the program of privatization in Ukraine by partners. As a result of related reforms we offered to foreign investors a package of available and effective assets. I think that this proposal is especially interested for Chinese business in terms of investing in their development, taking into account that China is now a world leader in terms of transactions in the mergers and acquisitions.

Ukraine welcomes the efforts of China to establish for all the partners of the "Belt and Road" project fair rules for trade, free of protectionism and manifestations of excessive protect of their own markets, which to some extent constrain the dynamics of global economic growth. This is especially negative impacts on countries with not sufficiently developed economic potential or those who are in a stage of transition to a different model of development.

Existing example of dishonest game on their logistic advantages and territorial exclusivity is a ban by Russia the movement of goods, Ukrainian particularly, through its territory. This harms not only us, but also the interests of China and other members of the “Belt and Road” initiative and actually destroys the spirit of fair and mutually beneficial trade, which incorporated by China and its partners in this geo-economic project.

I think that we all together must consistently oppose those totally illogical from economic point of view and highly politicized challenges that artificially arise on the ways of communication between countries.

 

Ladies and Gentlemen!

Concluding my speech, I would like to underline that the stage, at which economic relations between China and the rest of the world countries confined to trade, is expired. We are all surely aware that the modern world can not exist without economic achievements of China over the past two decades and its vast cultural and historical heritage which was forming through thousands of years. China’s Initiative "One Belt – One Road" is an attempt to combine all the varieties of Asia on the economic platform "made in China", and make it closer to Europe and the world. Ukraine has already supported this initiative and is ready for action towards its implementation.

 

Thank you for your attention!

I wish strong and fair relations to partners, mutually beneficial and promising projects!

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