The Ukrainian League of Industrialists and Entrepreneurs (ULIE) has expressed hope that further fruitful dialog with the authorities on elaborating mechanisms for the realistic integration in the West and East will continue, ULIE President Anatoliy Kinakh has said, commenting on the recent agreements between Ukraine and the Customs Union of Russia, Belarus and Kazakhstan.
“Industrialists and entrepreneurs believe that the creation of the Eurasian Economic Commission (EEC) and fruitful cooperation of Ukraine with it on the basis of international standards, on principals of equal competition, without pressure and the creation of artificial barriers, is in line with the interests of all of the participants in the process,” he said.
President of the American Chamber of Commerce in Ukraine Jorge Zukoski told Interfax-Ukraine that the news of the prospects of the signing of the Association Agreement between Ukraine and EU generated more positive comments among international investors who work in Ukraine and potential international investors than the news on Ukraine’s obtaining observer status in the Customs Union.
“It shouldn’t be said that Ukraine’s joining the Customs Union closes the way to the EU for the country, especially taking into account the fact that we understand that the status of observer could be given only to a country that plans to join the union in the future,” he said.
He said the way to strengthening economic relations with the EU states was a long and difficult one, and Ukraine has made many efforts in the process. He said that business community represented by the American Chamber of Commerce in Ukraine supports the country’s desire to join the EU and expresses its readiness to allocate funds for the development of Ukraine’s economy, as the Association Agreement with the EU will give the country access to one of the largest markets in the world.
“If Ukraine chooses the Customs Union, international investors will be less interested in investing capital and creating jobs in Ukraine,” Zukoski said.
He said that at present, Ukrainian producers and food exporters to Russia and other Customs Union countries face serious difficulties in receiving permits and certificates for exports and encounter obstacles to doing business.
“The status of observer could help in settling the problem and stabilize export transactions with our neighbors. The two markets are of large importance for Ukraine, and each of them has certain advantages, but Ukrainian authorities should make a final decision and decide what is better for Ukraine and the nation,” he said.
In turn, Kinakh called for the said directions not to be compared, as he believes that they can supplement each other, expanding the frameworks and overcoming artificial obstacles.
“In this context one should consider the signing of the memorandum by Ukraine with the Eurasian Economic Commission in Minsk,” he said.
He noted that in 2012, the share of the Customs Union’s countries of Ukraine’s balance of foreign trade was around 40%, and the EU’s up to 30%, although in the structure of imports of goods from EU the share of innovation and high-tech products was 35%, while the share of energy resources from the Customs Union was 60%. In addition, 79% of all foreign investment to Ukraine arrived from the EU, while only 8% came from the Customs Union, Kinakh said.
“It’s obvious that planning cooperation for the future we should take into account not only the capacity of the markets, but the opportunities for investments, upgrades, innovative development and growth in competitiveness, as well as the reduction in the energy consumption and the increase in productivity,” he said.
Kinakh said that both Ukraine and the Customs Union countries are trying to work using modern international standards, in particular, the standards of the World Trade Organization, as attempts to set off cooperation in the West and East are wrong and have a political context.
“The strengthening of economic integration with the Customs Union’s countries does not contradict the contents and spirit of the Association Agreement with the EU and a free economic zone, the signing of which is scheduled for autumn 2013 in Vilnius,” he said.
