The actions of the nation’s largest business communities show they are not on the same page with Ukraine’s efforts to integrate with the West and sign an association agreement in two weeks with the European Union.
International groups have been actively promoting the idea and teaching businesses
how to adjust to new conditions should a free trade agreement be inked.
Meanwhile, local groups have been rather passive.
The International Chamber of Commerce, which unites about 300 foreign
and Ukrainian businesses, has been helping companies prepare for the new changes
that are in store for about seven months already, according to its president
Volodymyr Shchelkunov. One project included opening ICC branches in EU member
states.
“We opened a number of representative offices abroad, so our companies will
have (places) where to get assistance as embassies have no right to deal with
commercial activities,” Shchelkunov says referring to offices in Austria,
Hungary and Germany. “It includes visa assistance, help with establishing
partnerships and other services.”
Shchelkunov says the chamber is also closely working with the economy
and foreign ministries of Ukraine and has organized business conferences on the
pros and cons of what the Association Agreement will entail.
“We have been teaching them what to do to avoid negative consequences,”
he says. Shchelkunov said Ukraine has a 70 percent chance of signing the
far-reaching EU deal at the Nov. 28-29 summit.
The American Chamber of Commerce in Ukraine, an association that unites
about 600 businesses has gone even further. It started analyzing the impact the
association agreement and free trade agreement will have on some of the major
industries, according to Jorge Zukoski, president of ACC.
The first part of this analysis will be available in early December,
according to him. “It will identify the areas of concern and benefit for
companies working in the food and beverage industry as well as an action plan
of what needs to be done to harmonize the legislative and regulatory
environment in line with the Agreement,” he says.
In addition to that, ACC is working to establish a free trade advisory
center to identify the legislative and regulatory changes and communicate opportunities
to Ukrainian medium-sized companies about the EU market.
The Ukrainian Union of Industrialists and Entrepreneurs (USPP) run by
Party of Regions lawmaker Anatoliy Kinakh officially supports the signing of
the association agreement. The union has
conducted studies of business attitudes toward EU integration and holding
discussions discussions with entrepreneurs.
Meanwhile at a Nov. 12 meeting the union had with President Viktor
Yanukovych together with the Federation of Trade Unions of Ukraine, USPP member
and Party of Regions lawmaker Valentyn Landik even proposed that Yanukovych
postpone the signing for one year.
“We are experiencing serious problems with Russia and Kazakhstan,
which account for over 50 percent of our exports,” he said, according to
Interfax news agency. Landik also emphasized that Ukrainian commodities could
fail to be competitive after the signing, because Ukrainian exports to the
Customs Union could face limitations.
“If it is possible, let’s put off the signing for one year. You
should give us a chance to get prepared, give us a chance to buy equipment.
It’s not just my big request, it’s a big request from industrialists,”
Landik was quoted as saying.
Another organization that seems to be worried about the possible signing
of the association agreement is the Federation of Trade Unions of Ukraine. While
its activity concerning EU integration wasn’t active during previous months, in
a letter it recently written to Yanukovych, the federation head Yuriy Kulyk complained
that Ukrainian enterprises are facing losses because of complicated relations
with partners from Russia and CIS countries.
Kyiv Post staff writers
Anastasia Forina and Kateryna Kapliuk can be reached at [email protected] and [email protected] respectively.
