Interview of the President of Chamber of Commerce and Industry of Ukraine

- Mr. Skrypchenko, how the relations between business communities of Ukraine and the UAE were formed? Our relations started in 1995 when the first Ukrainian business delegation visited the UAE. During this visit, agreements on cooperation between CCI of Ukraine and Dubai and Sharjah Emirates were signed; our Chamber has also initiated an exhibition of Ukrainian industrial products in the UAE.

The relations between our countries gained new momentum after a visit to Ukraine in 2002 of Mr. Saeed Bin Jaber Al Suwaidi, President of the Federation of UAE Chambers of Commerce and Industry who has conducted negotiations in the CCI of Ukraine, Ministry of Foreign Affaires and Ministry of Economy of Ukraine. This visit resulted in the establishment of Ukraine-UAE Business Council and in 2005 Ukrainian Trade Center in the Gulf countries was set up.

- To which extent is the potential of both countries being used and how do you estimate prospects for developing economic ties between two countries?

To date, the economic potential of both countries is not being used in full measure.

The CCI of Ukraine is doing its best in order to foster bilateral trade cooperation. Thus, in 2002 the Ukrainian chapter of Ukraine-UAE Business Council was formed headed by Mr. Sergei Pachkovsky, President of Investment and Privatization Assistance Fund. I hope the Council will start its activities this year having both chapters as planned before.

A practical result of the activities of the Council’s Ukrainian chapter is a creation of the Ukrainian Trade Center in the Gulf countries; UTC assists Ukrainian companies in promotion of their goods at regional markets. Ukrainian Trade Center is officially empowered to represent Chamber of Commerce and Industry of Ukraine in the UAE and all countries of the Gulf.

The potential of the Middle East market is enormous. Due to virtually total absence of the own production, the countries of the region are importing the goods and services they need. The UAE alone are importing annually different commodities worth USD 35 to 40 billion. Moreover, many neighboring Arabian states, countries of South-Eastern Asia and Northern Africa are making their industrial purchases in the UAE as one of the region’s most developed countries. It renders the region even more attractive for setting up own business as we may speak on the potential consumer market of some 3 billion people.

- Mr. Skrypchenko, which economy sectors could, in your opinion, serve as a base for raising the economic relations between Ukraine and the UAE to a qualitatively new level?

We expect that the establishment of Ukrainian Trade Center in Dubai will enhance the economic relations between our countries. Until now, there was a high demand for ferrous metals and ironware – some 80-90 % of the whole Ukrainian exports to the UAE. Other domestic products are less popular as the analysis of bilateral trade structure of the last 2 years reveals: machineries – 5 %, integrated circuits – 2 %, clays – 1,6 %, devices and appliances – some 2 %. As to Ukrainian imports from the UAE, around 20 % make agricultural products, 13,2 % - wood and goods thereof, other positions are insignificant.

In order to expand trade turnover, the agreement was signed in 2005 between Jebel Ali Free Zone Authority (Emirate of Dubai) and Investment and Privatization Assistance Fund (IPAF) which will now represent the interests of Jafza in Ukraine and, correspondingly, of the companies registered in Jafza (more than 8 500 worldwide renowned companies). By the way, Jebel Ali Free Zone was established in 1985. Today it is one of the most successful and rapidly expanding free zones in the world. Jebel Ali is also a major goods transshipment hub attracting many customers who seek to use excellent possibilities of Dubai for export, re-export and goods allocation. The highly professional staff of Jebel Ali Free Zone is working for the sake of its customers in many countries of the world. Thus, after receiving a long-term concession for the operation of the South container terminal in the harbour of Constanta (Romania), Jebel Ali Free Zone Administration managed to increase the turnover by 500 % and reach a record mark of 500 000 TEU as of November 23, 2005; in 2004 this figure was merely 100 000 TEU. I suppose, this successful experience could be of interest also for Ukrainian seaports and container terminals in Odessa, Ilyichevsk, Kerch and other.

- In 2002 to 2006 the Ukrainian officials and business people have often visited the UAE, attending various international conferences. Do you expect, in the near future, a visit of the Arabian delegation to Ukraine?

In accordance with bilateral arrangements, at the end of June - beginning of July 2006, a representative Arabian delegation will visit our country. The delegation will comprise the heads of Dubai Chamber of Commerce and Industry, Jebel Ali Free Zone, managers of major companies and internationally renowned financial investment groups. The delegation will visit Kiev, industrial centers of Eastern Ukraine, harbours and recreational areas of the Odessa region and Autonomous Republic of Crimea. I am confident that the personal acquaintance of the UAE’ representatives with the potential of Ukraine will give a powerful stimulus for bilateral economic relations.

- Soon the first issue of the magazine “Ukraine-UAE: Property, Business, Investments” will be published. For whom is this new magazine destined?

I suppose the magazine will be read by entrepreneurs and students of economics in both countries. For our part, Chamber of Commerce and Industry of Ukraine will actively contribute to the magazine’s distribution among their members in 26 affiliates throughout Ukraine, and it means   ore than 15 000 most successful companies of our country.

Interview conducted by Yuriy Potashny Head of PR-department, Ukraine Trade Center