e=Times>New British Ambassador Robert Brinkley presented his credentials to President Leonid Kuchma on Aug. 29. A graduate of Corpus Christi College, Oxford, Ambassador Brinkley joined the diplomatic service in 1977. As well as two three-year stints in Moscow in the early eighties and the late nineties, Ambassador Brinkley has served in Geneva and Bonn. A fluent Russian speaker, he studied Ukrainian in preparation for his posting in Kyiv.
The Post interviewed Ambassador Brinkley on Sept. 17.
Q: How difficult has it been for you to acclimatize to life in Ukraine? Did you undertake any special preparation before taking up your posting?
A: Not at all difficult, really. I have found Kyiv a very pleasant city to come and live in. It has helped that I lived twice before in Moscow. So I’ve got experience living in the former Soviet Union. And I spent six months preparing myself for my posting here. Most of that was spent learning Ukrainian. Then there was a program of briefings, in which I visited a large number of people and organizations in Britain with interests in Ukraine.
Q: Britain is the third-largest investor country in Ukraine, do you think British companies are likely to maintain the current level of investment? What can be done to encourage more British companies to invest?
A: Britain is the third-largest source of investment in Ukraine according to Ukrainian official statistics. And that is third place after the United States and Cyprus. As you know, London is a major financial center, and I would guess that some of that investment is Russian and Ukrainian money coming through the UK.
Worldwide, Great Britain is the number two investor after the United States. British companies and banks have enormous experience investing overseas. They are ready to invest. What they need is a stable and transparent environment to invest in. And the more Ukraine can provide such an environment, the more investment there will be.
Q: How do you respond to the latest study by Transparency International, which rated Ukraine among the world’s most corrupt countries – placing it 85th out of 115 countries? What can Britain do to help eradicate corruption in Ukraine?
A: I am saddened by the finding but not altogether surprised. The Ukrainian government and parliament themselves have recognized the high level of corruption in their country. I think the best thing Britain could do is work with Ukrainian authorities to increase accountability and increase transparency in the systems here. Studies done by the World Bank show very clearly that the more corruption there is perceived to be in a country, the less investment will come to that country. So it is very much in Ukraine’s own interest to tackle corruption, and we want to do all we can to help them do that.
Q: In what industries have British investors directed their funds and in what regions of Ukraine?
A: There are over 70 companies in Ukraine with British connections. They are working in a variety of sectors such as nuclear energy, oil and gas, construction and property, consulting, investment banking, insurance and pharmaceuticals. Examples of the investment are in oil and gas production in the Poltava region, and in the brewing industry. Baltika Breweries, or BBH [which owns the Slavutych Brewery in Zaporizhya and the Lviv Brewery], is half-owned by the British company Scottish and Newcastle.
Q: What are your thoughts on the recent ruling by the Supreme Court invalidating JKX Oil and Gas claim to a majority stake in the Poltava Petroleum Company? Last year Prime Minister Tony Blair wrote to President Kuchma asking him to uphold the interests of JKX in Ukraine in its dispute with the State Property Fund. Should JKX ask for your assistance in their case, how do you plan to help them?
A: We remain concerned to do all we can to help JKX to safeguard their investment in Ukraine. They are the largest British investor in this country. They have invested about $100 million. Through their joint venture in Poltava they are producing oil and gas. They are paying their taxes. They are creating employment and improving social conditions in that region. The company is pursuing through the Ukrainian courts their case to safeguard the ownership of their assets – their licenses to produce oil and gas.
I don’t wish to intervene in the judicial process, but it is important not only for JKX but for other foreign investors to see that the process of consideration by the courts is transparent and fair at every stage.
Q: The European Union has responded fairly coolly to President Kuchma’s announcement this spring that Ukraine is committed to joining the EU and NATO. Does Britain consider that the EU’s response to Ukraine’s overtures should be more favorable?
A: I don’t think the EU has responded coolly. It has welcomed Ukraine’s European aspirations. NATO has welcomed Ukraine’s decision to have a stronger relationship with that organization. Britain is keen there should be no new dividing line in Europe. We are working with our partners and allies in the European Union and NATO for a strengthened relationship with Ukraine. Of course, Ukraine is already NATO’s Eastern neighbor, and it will soon be an Eastern neighbor of the EU.
Q: Does Britain support the accession of Ukraine to the World Trade Organization? What are the major political and economic obstacles that Ukraine is facing?
A: We certainly do support Ukraine’s wish to accede to the WTO. There is a lot of work Ukraine still has to do in order to meet the universal free-market standards, which are required for membership in the WTO.
We are ready to provide whatever advice and assistance we can to Ukraine as it works through that agenda. One of the priorities clearly is to pass the tax code – to reform and simplify the system of taxation in Ukraine. There also needs to be transparency in the pricing and supply of oil, gas and other forms of energy.
