In April, I took part in the high-level international conference “One Belt – One Way,” which was held in China. Many Chinese bilateral talks and plans for the future were discussed with Chinese counterparts. The event brought together more than 5,000 participants from about 40 countries.
China is an important strategic partner for Ukraine. The route connecting Asia to Europe begins in China and passes through the Ukrainian port of Chornomorsk. Chinese investments, in which Ukraine is particularly interested, will allow us to modernize our infrastructure, implement new projects and unite the countries of the New Silk Road.
Air services
Air transportation between our countries is developing. So, by 2015, the volume of transport was just over 100,000 passengers per year, and by 2018 already exceeded 200,000 passengers per year. The dynamics of the growth of passenger traffic by 25 percent per year is constant. However, given the example of other countries, we understand that this market can reach millions of passengers, provided that the number of weekly flights increases and the geography of flights between Ukraine and China is expanded.
Today, direct flights between China and Ukraine are performed only by Ukraine International Airlines. Ukrainian carriers assumed all responsibility (informational, financial) for the development of the air transport market between China and Ukraine. The most significant of the direct flights is Kyiv-Beijing, which is in high demand (95 percent full) with a frequency of seven flights per week. Also, SkyAp offers seasonal flights to Haikou. The load of these flights exceeds 97 percent. Frequency of these flights is low – only 2 flights per week. So, in general, Ukraine with a population of 45 million, has direct flights to only two cities of the People’s Republic of China. Each new open flight gets a full download at once. Both sides are interested in developing this issue in the near future.
Air express
As a result of the denunciation of the commercial agreement between state enterprise National Aircraft Express Project and the China National Complete Engineering Corporation of April 18, 2011, the part of the unused loan amounting to about $37.2 million should be returned to the Ukrainian side. In addition, the Chinese insurance company Sinosure should be reimbursed to the Ukrainian side an insurance premium of approximately $36.38 million in connection with the non-arrival of the insured event and the voluntary termination of the said contracts. The total amount of funds to be returned to Ukraine is about $73.7 million. In essence, the project is implemented by Ukrzaliznytsya for the amount twice as low as the Chinese guilty of the Government of Ukraine. This argument should be used in the negotiation process, since this agreement was signed at 7 percent per year.
Investments
During my visit, a new model agreement of 2 percent per year was agreed, which is similar in format to those agreements with the international financial organizations European Bank for Reconstruction and Development and the European Investment Bank.
We are preparing to sign a loan agreement between the governments of Ukraine and China for a total of $340 million for the construction of a bridge over the Dnipro River near Kremenchuk; signed a memorandum that launches the preparation of a detailed roadmap for Ukraine-China on the joint construction of the Silk Road Economic Zone and the Sea Silk Road of the 21st Century.
The China Economic Initiative, entitled “One Belt, One Way,” based on the concept of two global trade directions of the New Economic Silk Road and Sea Silk Road of the 21st Century.
Our Chinese partners support the principle of achieving universal growth through dialogue and cooperation, using consultations and sharing responsibility for achieving mutual benefit. All countries interested in participating in the “One Belt – One Way” initiative may try to implement their own projects. China has maintained and will maintain openness, integrity and the development of environmental technologies.
As part of a large-scale infrastructure project, China is going to invest billions of dollars in the development of ports, highways and railways, telecommunications networks and airports. As a result, new economic and trade routes leading from China to the EU should appear.
Today, we understand that China has become instead of source of cheap imports for the main source of investment. And now it depends on our decisions whether Ukraine will become an important link of the New Silk Road or will stay away from these processes.
