British Ambassador Leigh Turner is one of the most active diplomats in Ukraine.
He found a way to combine his passion for writing with his job by writing a popular personal blog, where he shares his views on topics from politics to the weather. He’s also good at combining work and family, since he took four years of unpaid leave to raise his children. Shortly after the end of his leave, he was appointed as British ambassador in Ukraine in 2008.
In his interview with the Kyiv Post at the British Embassy in the old part of Kyiv on Desiatynna Street, he spoke about the United Kingdom and Ukraine relations. He also shared his concerns that recent political developments in Ukraine could jeopardize the nation’s European integration.
KP: How would you assess British-Ukrainian political and economic relations? What are major figures that reflect economic relations?
Leigh Turner: We were the first European Union member state to recognize Ukraine as an independent country. At the same time we have developed throughout the period of independence very strong trade relations with Ukraine.
There are more than 100 companies with a U.K. connection active in Ukraine, including many big names such as Shell, TNK-BP, GlaxoSmithKline, London & Regional Properties, Mott MacDonald and many others.
The statistics are pretty good for trade. Bilateral trade has been growing strongly in the first six months of 2011: UK exports are up 14 percent in the first eight months of 2011; and Ukrainian exports to the U.K. are up 84 percent. The United Kingdom is … the seventh largest investor [in Ukraine] and we’re keen to see that increase.
KP: How does London perceive Ukraine as an investment destination?
LT: We have always said that there are opportunities here for companies that are patient, that are able to spend time to get to know the business environment. Unfortunately, the business conditions in Ukraine remain very difficult.
In particular there are grave problems with the rule of law. Business interests who are close to the state are able to use all of those to put pressure on competitors to gain commercial advantage.
KP: What are the major British investments in Ukraine and what are the major Ukrainian investments in the U.K.?
LT: One of the most important recent investments has been between Shell and Ukrgasvydobuvannia [a state-owned gas company], which potentially is worth up to $800 million. In theory it will encourage more investment in Ukraine.
I’ve spoken to many large energy companies who tell me they could invest billions of dollars in Ukraine very quickly if they really believed that the Ukrainian government was prepared to create conditions for inward investment. But, unfortunately, the environment here remains stifled by bureaucracy.
KP: How many British people live in Ukraine? What makes a British citizen leave his home country with high living standards and come to Ukraine?
LT: According to Ukrainian statistics, there were 67,401 British nationals visiting Ukraine in 2010. For many years we have been using a figure of around 3,000, but we don’t keep close records.
There are many reasons for people wanting to come and live in Ukraine. It’s a beautiful country, very nice people and there are many business opportunities here for people who are prepared to work hard and take a long-term view.
KP: Because of the recent conviction of former Prime Minister Yulia Tymoshenko, and Ukraine signing a free-trade agreement with Russia and six other former-Soviet countries, is Ukraine shifting its focus eastward?
LT: I am not convinced that Ukraine wants or that it is shifting eastward. As the British prime minister and the foreign secretary have said, we have grave concerns about the recent politically motivated trials of members of the opposition.
We believe that those trials could pose serious obstacles to the signature and ratification of the proposed association agreement with the European Union, unless people who have been detained as the result of flawed trials are released and able to participate in political life. We will be looking to Ukraine to create the conditions where Ukraine’s European integration process can continue.
KP: After the Oct. 20 Brussels visit of President Viktor Yanukovych was cancelled, what are the chances for the association and free-trade agreement to be signed or ratified?
LT: There are several stages to this process. The first stage is whether or not the association agreement can be initialled, which means the end of the technical negotiations, by the end of this year.That is in theory still possible if Ukraine is prepared to take necessary steps. The second question [is] whether the association agreement can then be signed and ratified.
But, as I said, unless there is progress on the release of opposition leaders who have been detained as the result of flawed trials and their ability to participate in political life, I fear it’s not looking good for either signature or ratification of the association agreement.
What we to need to happen is for Ukraine to take the measures which will make it possible for the agreement to be signed and ratified. If those measures are not taken, the chances of the agreement being signed and ratified are extremely poor.
KP: The U.K. has passed a Bribery Act which applies to British businesses operating in Ukraine as well as Ukrainian businesses that operate in the UK. What are the results so far?
LT: The U.K. Bribery is an extremely important new piece of legislation. The act sets out clearly what constitutes bribery and how to avoid any kind of illegal activity. I’ve talked to many business people about this, and they say they are taking important steps to make sure that they stay within the parameters set out by the act. I’m not aware of any examples of Ukrainian businesses or British businesses in Ukraine being found guilty of any offenses under the act so far.
KP: What do you think Ukraine should do regarding corruption that has settled deep into Ukrainian mentality? Do you think it’s possible with low salaries, primarily in the government sector, that spread the seed of bribery?
LT: Unfortunately corruption is a very serious problem in Ukraine. I don’t think that low salaries are the only problem. I think the primary problem with corruption is political will. One of the main obstacles to doing business and investing in Ukraine is that people close to the authorities are able to use their links to the authorities to gain commercial advantage and make money.
KP: You have taken a leave for four years to take care of your children, putting your career on hold. Was it hard to resume a diplomatic career afterwards?
LT: Certainly I was fortunate in taking my four years unpaid leave in that I had a supportive employer in the Foreign Office. At the same time, when I returned to the Foreign Office I needed to compete for jobs with other people who had been working for the last four years. At the same time I would say that those four years were very important to my personal and professional development.
Not only did I get to know my children much better than I would ever have got to know them if I’d been going to work every day for those four years, but also I was able to do other things, for example I did some journalism for the Financial Times and other newspapers, which was very interesting and enjoyable. I carried on my hobby of writing novels which also I earned a bit of money from.
I was able to see that there are other things which are important in life as well as your career. So I would encourage anybody who has a supportive environment to do this. I’m happy to say that so far at least it hasn’t done my career too much harm.
The United Kingdom
Territory: 243,610 square kilometers
Population: 62.7 million people as of July 2011
Government type: constitutional monarchy
Head of government: Prime Minister David Cameron since May 2010
GDP (purchasing power parity): $2.173 trillion in 2010
GDP per capita (PPP): $34,800 in 2010
Main industries: machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles and clothing.
Ukrainian-British economic relations:
Trade: $2.5 billion in 2010
Exports from the UK to Ukraine: professional instruments, pharmaceutical products and road vehicles
Exports from Ukraine to the UK: iron, steel, vegetable fats and oils, animal feed and petroleum
UK’s investment in Ukraine: $2.4 billion as of July 2011.The UK is Ukraine’s seventh largest investor.
Ukraine’s investment in the UK: no data available
Two events to watch
On Nov. 30, the British-Ukrainian Chamber of Commerce will host an event in Donetsk on British investment in Ukraine. The event is dedicated to celebrating life and enormous contribution of John Hughes, the British founder of Donetsk.
In 2012 London will host Olympic and Paralympic Games. To promote the UK for the upcoming Games, the GREAT campaign was launched by the British Prime Minister David Cameron. Year 2012 is also the Diamond Jubilee of Queen Elizabeth II, marking the 60th anniversary of her accession to the throne. This will be the second Diamond Jubilee celebrated in British history, after Queen’s Victoria in 1897.
Sources: CIA World Fact book, State Statistics Committee, British Embassy
Kyiv Post staff writer Maryna Irkliyenko can be reached at [email protected].
