Today, 23 June, at the EU Summit, 27 member states voted to give Ukraine and Moldova candidate status for EU membership. This positive decision was a signal of faith in Ukraine. A symbol that Europe stands with Ukraine (contrary to the Russian propaganda narrative that everyone will abandon Ukraine, and no one will take its side). A new impetus for Ukraine’s victory in this fight.
Ukraine is more than ready for this signal, for this faith. Ready for the status itself, perhaps more than any new candidate in the past 30 years.
On top of that, Ukraine and Ukrainians are fighting for the right to become part of the European family with weapons in their hands, defending their freedom and European values.
So, Ukraine is definitely ready.
Ready in terms of values. Ready to a large extent institutionally. And totally ready economically. I state this as the representative of the largest national investor, Rinat Akhmetov’s SCM investment group. Ukraine is ready to be not just another random EU member, but also a reliable partner for Europe on the way to its strategic autonomy (production, food, energy).
That is, Ukraine has been half a step away from EU candidate status. And Europe a couple of steps away from real strategic autonomy. Now, a classical win-win situation.
This op-ed is a view of business on the mutual benefits of Ukraine and Europe from our future European integration. In four theses.
- Ukrainian business is ready to work according to European rules, ready for open competition and ready to further support structural reforms in Ukraine. We at SCM are more interested than anyone else in the liberal European market model – we are ready to compete in the Ukrainian and European markets, invest in them, and create effective partnerships with global players.
For example, in March 2022 Ukraine rapidly, almost two years ahead of schedule, became a part of the single European energy space, disconnecting from the Russian energy market. 3 months of work proved that the Ukrainian energy system and its participants were completely ready to work according to the unified European rules in the energy sector.
Ukrainian metallurgy is also deeply integrated into global supply chains and the European market. Before the war, Ukraine was No. 2 exporter of cast iron, No. 3 supplier of steel semi-finished products, No. 6 exporter of hot-rolled coil.
And for Ukrainian business, the status of the candidate has become the final and irrevocable signal that it is time to learn to compete at the European level now.
For European business, the status of a candidate status for Ukraine is a be a signal to take a closer look at the Ukrainian market.
- For Ukraine European integration is a chance to finally build a working judicial system, ensure the rule of law and the sovereignty of private property in Ukraine. Make the economy more market-oriented and competitive. Significantly reduce the level of corruption in the state. Ukrainian business supports and will continue supporting key structural reforms in Ukraine aimed at combating corruption, ensuring the rule of law and the sovereignty of private property, as well as a level playing field for all.
We, as a strategic investor, more than anyone else, need stable, equal, and liberal rules of the game. And institutions that guarantee their implementation and protection of our investments.
For us European integration is primarily about this and for this.
For Ukraine, candidate status comes with very specific requirements in the above-described areas. Ukraine received homework; problem statement is crystal clear:
https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_3802
And Ukraine, to move further towards membership, will (despite everything) have to meet these requirements. What will strategically make us, as a country, a lot stronger, more independent, more successful.
For Europe, Ukraine’s progress in these areas is clearly beneficial without any additional arguments.
- Ukrainian business can and will become the most important partner for Europe in achieving its amidst autonomy (independence primarily from Russia, but in fact not only)
- Food (everything is clear here)
- Security autonomy
- Production
- Energy
- Autonomy of human capital
For example, in terms of energy autonomy. In the future, Ukraine can export to the EU up to 7.7 GW of “clean” (carbon neutral) energy – produced at nuclear power plants and renewable energy facilities. This will help Europe replace about 20 bcm of Russian gas.
We know for sure that these are absolutely real figures, material for Europe – over the past few years, DTEK has invested over 1.5 billion euros in the construction of new renewable energy facilities in Ukraine.
- Restoration of Ukraine will become the largest modernization project of the 21st century, not only in terms of one country, but in terms of the whole Europe. It is already clear that we are talking about hundreds of billions of euros and that European governments will allocate institutional funding for this. But private money will also come – post-war reconstruction will turn Ukraine into a huge market, into a space for private investment. It is fundamentally important for Ukraine that our post-war modernization is not so much a humanitarian mission of the West as an investment one.
So, granting Ukraine the status of a candidate is foremost a signal for Western private investors, private businesses, that the EU believes in our country and its economic potential. That Europe’s modernization of Ukraine is beneficial not only geopolitically and in terms of values, but also economically. That Ukraine can be and should be invested in.
Such a “leap of faith” will open up investment opportunities for European business itself and will save the funds of European taxpayers without attracting institutional funds for the restoration of Ukraine where private investments can and should go. It will create conditions for private European investment in Ukraine, reduce the weight of public finances and make the future recovery of Ukraine not an additional burden on European budgets, but an added value to European business.
Without candidate status, approved at the Summit, investments from the West would have come in reluctantly and risky investors like China, the Arab countries and Asia would certainly taken advantage of it. Because nature (including economic nature) does not tolerate emptiness.
And here Ukraine wins, first of all, in terms of values, whereas Europe wins economically.
These four theses are the outline of how Ukraine and the EU mutually benefit from our candidacy.
I voiced them at a discussion panel “Ukraine accession to the European Union: Modalities, Timeline and Perspectives”, organized by the Aspen Institute on June 15th. Ukrainian and European opinion leaders, government and business representatives exchanged views on Ukraine’s prospects in the EU and the benefits that Europe will receive after Ukraine’s joining.
For more details: https://aspeninstitutekyiv.org/en/ukrainski-lidery-poiasnyly-iak-intehratsiia-ukrainy-mozhe-pidsylyty-ies/
Natalia Yemchenko is Chief Reputation Officer, SCM
