You're reading: Ukraine may get more trade deals

Despite having no office in Ukraine, the 70-member Norwegian-Ukrainian Chamber of Commerce has an ambitious plan to strengthen bilateral trade. The goal is to increase in the next 10 years, especially in four areas: agriculture, information and communications technology, seafood and energy.

The trade turnover between the two countries reached only $192 million in 2014, down 38 percent, because of Russia’s war and Ukraine’s recession.

Norway’s nominal gross domestic product of $500 billion is five times larger than Ukraine, even though Ukraine has almost nine times as many people.

Sigmund Ekhougen, managing director of the Norwegian-Ukrainian Chamber of Commerce, says that Ukraine — with its stifling bureaucracy, weak rule of law and rampant corruption — is still a tough sell to businesses from his nation.

“We have to work harder to convince Norwegian businesses that Ukraine is an interesting market,” Ekhougen says.

Arnfinn Nordbo, project manager of the chamber, says that Norwegian businesses have no interest “in being a part of the corrupt system and that’s why obviously you see less Norwegian investment.” But Richard Scarborough, counselor of the Norwegian Embassy in Ukraine, says that the worst may be over for Ukraine’s economy. These are the four sectors that companies are studying:

Technology
Ekhougen, also former chief operating officer of Kyivstar, a leading Ukrainian telecommunications company, says interest is growing in the progressive sector. On Nov. 11, the chambers will be hosting the Norwegian-Ukrainian ICT and Investment Conference in Oslo, where Ukraine’s Economy Minister Aivaras Abromavicius and Kyiv Mayor Vitali Klitschko are expected to participate.

Seafood
Fish, making up 90 percent of Norway’s exports of goods to Ukraine if oil is excluded, has declined by 33 percent, or $120 million, in 2014. Norway is considering Ukraine as a possible fish processing market because of its cheap labor. The fish could then be re-exported to the European Union.

Agriculture

Norway’s import restrictions on Ukraine’s agricultural products hinder progress. But Norway may compromise to open the market more. “We are willing to look at those categories where we might allow more Ukrainian produce to enter the market,” Scarborough says.

The Norwegian-Ukrainian Chamber of Commerce favors a revision of the bilateral trade agreement. “We sincerely hope that we will increase the exports from Ukraine to Norway in agricultural goods,” Ekhougen says.

Energy sector
When it comes to renewable energy, Norway can help Ukraine to be more independent. Norway is energy self-sufficient, partly due to hydropower, which allows the country to export oil. Ekhougen believes that the mountainous western part of Ukraine can have similar success in hydropower plants.

Kyiv Post staff writer Ilya Timtchenko can be reached at [email protected].