Polish representative: ‘Poland is ready to help Ukraine as long as you are interested’

Pawel Gebski, 38, Head of the economic section in the Polish embassy, started his job three years ago.

Coincidentally, Gebski was appointed on exactly the same day that Ukraine and Poland won the bid to host the Euro 2012 football championship.

Gebski started his career in the Polish Economic Ministry and worked at the Warsaw Industrial development bureau of the United Nations as an expert on foreign investment.

During his interview with the Kyiv Post, Gebski tells what Ukraine needs to get on the European Union track, attract foreign investors and get where Poland is today economically and socially.
The topic of football also made the discussion.

Kyiv Post: What are the major areas of economic cooperation between Ukraine and Poland?

Pawel Gebski: We have a history of long and high-level cooperation, both on the governmental level and in the private sector. Our trade reached $9 billion in 2008, which made Poland Ukraine’s third largest trade partner. Poland is also Ukraine’s 12th biggest investor, with $870 million already invested in the country.

The number of small and medium-sized Polish companies in Ukraine is very big, especially in neighboring Lviv and Volyn regions.”

– Pawel Gebski, Head of the economic section in the Polish embassy.

PKO BP bank is considered the largest investor in the country after buying Ukraine’s Kredobank.

Last year, it invested $179 million in its daughter company in Ukraine. Polish insurance company PZU is also advancing in Ukraine’s market.

The number of small and medium-sized Polish companies in Ukraine is very big, especially in neighboring Lviv and Volyn regions. They work in many sectors, notably in construction and furniture production.

In recent years, Poles built the Barlinek plant. It produces wood floorings in Vinnytsia region. Another plant, Cersanit, produces ceramics and bathroom equipment.

KP: Why are Polish entrepreneurs attracted to Ukraine?

PG:Poles like Ukraine for its big territory, population and geographic proximity. Moreover, we don’t have any mental or language barriers. Ukrainians usually understand Polish and Poles understand the Ukrainian language. Poles see a huge growth potential in Ukraine.

KP: Some Polish businesses left Ukraine during the economic crisis. How is the situation now?

PG: This is true: The crisis scared away many small businesses, especially, in the construction sector.

Big- and medium-sized Polish companies, however, stayed behind, curtailing their investments. Now Polish business evaluates the situation in Ukraine more positively than before.

KP: What can be improved in Ukraine to secure better cooperation with Poland?

PG:I don’t think Polish businesses are waiting for anything different from Ukraine than any other foreign investors.

From a business point of view, the most important issue is political stability. And it is the case with Ukraine now.”

– Pawel Gebski, Head of the economic section in the Polish embassy.

Bureaucracy, ambiguous laws, paralyzed courts and officials who interpret the legislation to their liking are things that turn investors away.

Some Polish companies complain about their Ukrainian partners’ behavior and difficulties with returning VAT [value-added tax] in Ukraine.

Government’s emission of the VAT bonds has partially solved the problem.

There are some positive signals as well. From a business point of view, the most important issue is political stability. And it is the case with Ukraine now.

As an embassy, we view positively the government’s reform plan.

The tax code may not be the most perfect, but it’s an effort to change the situation for the better. We received some unflattering remarks about it, but since the code is still in the making, we hope that some changes for the better would be made.

If Ukraine pursues European integration further, it will succeed.

A very important step is the free trade agreement. I know that many people in Ukraine are afraid that if they allow foreign products in, Ukrainian industries will simply die.

But it should be seen as a chance and a challenge to make Ukrainian business more competitive. Ukraine will also harmonize its legislation with European laws.

Poland has already done it and it made a positive effect on the economy.

Fireworks illuminate the municipal stadium during its official opening in Poznan, Poland, on Sept. 20. The Poznan stadium is the first of four stadiums in Poland to be completed for the Euro 2012 soccer championship, which will be held in Poland and Ukraine. (AP)

KP: What can bring Ukraine closer to Europe?

PG: An association agreement is very important now. Ukraine should focus on obtaining the road map for the visa-free regime with Europe. In recent surveys, Poles marked the ability to travel, study and work freely in any country of the EU as the most important advantage from membership.

When Poland joined the European Union, we experienced an increase in investment and trade. Yet improvement was felt even during the transformation period, before we gained membership.

Ukraine’s legislation is gradually approaching European standards, but implementation remains a problem. The administration doesn’t understand, and sometimes doesn’t want to use these good laws, so to speak.

Poland went through this, and it required a change in mentality. Authorities should help businesses grow, instead of squeezing more and more money out of them to fill the budget.

KP: Poland has been helping Ukraine become part of the EU for a long time now. Will you maintain this policy despite an improvement in relations with Russia?

PG: Poland is ready to help Ukraine as long as you are interested in it. If we improve ties with Russia, it doesn’t mean we stop working with Ukraine.

We have a lot of positive experience to share with Ukraine. Both countries have a large agriculture sector. Poland has reformed it successfully, while Ukraine has yet to do so.”

– Pawel Gebski, Head of the economic section in the Polish embassy.

We have a lot of positive experience to share with Ukraine.

Both countries have a large agriculture sector.

Poland has reformed it successfully, while Ukraine has yet to do so.

Polish small and medium-sized businesses helped the country go though the economic crisis without major losses.

In Ukraine, big businesses lay the foundation of the economy, which is one of the reasons why Ukraine’s economy is so fragile.

KP: What’s the progress on Euro 2012 preparation?

PG: We have reached the stage now when our cooperation should get closer.

Prior to that, we worked separately building stadiums, airports, hotels, etc. It was a big challenge for both countries. In comparison to the West, where the entire infrastructure is already in place, we had a lot to catch up with. Ukraine is ahead of Poland in terms of completing work on two stadiums.

We finished our first stadium only recently, while others are still under construction. Up to 70 percent of the infrastructure is ready in our countries.

We are now coordinating efforts to standardize security and medical services. We are also working to increase capacity of our borders so that fans can easily travel from Ukraine to Poland, and vice versa.

Read also ‘Condoms, flowers, stories from Poles in Ukraine‘ by the author.

Kyiv Post staff writer Kateryna Grushenko can be reached at [email protected].