Christian Schoenenberger came to Ukraine late last year as Switzerland’s ambassador.
In his embassy located on Pechersk Hills across from Kyiv’s museum to World War II, Schoenenberger told the Kyiv Post that the free-trade agreement that Ukraine inked in 2010 with so-called EFTA states (Switzerland, Liechtenstein, Iceland and Norway) could take effect this year.
He also touched upon Swiss legislation to combat money laundering and assessed Ukraine’s chances of tracking and returning money suspected of being obtained through fraud.
Swiss banks, notorious for their secrecy, have provided a haven since 1934.
The Economist magazine, citing the Boston Consulting Group, says that Switzerland’s banks housed around $2.1 trillion, or 27 percent, of offshore wealth in 2010.
Kyiv Post: You just arrived. How do you find living in Ukraine?
Christian Schoenenberger: I’ve been here for about five months now. I feel Kyiv has a high quality of life. I feel very much at ease and also my wife. People are very nice and open-minded. We had a very good start.
KP: How would you evaluate political relations between Ukraine and Switzerland?
CS: Political relations are already good, but of course everything can still evolve and become better. Last year, for instance, we had a meeting on the level of presidents.
This year we plan a meeting on the foreign ministers level.
I think Switzerland would certainly have an open ear if a country like Ukraine asked for similar agreements to the ones we just signed with Germany and the UK
– Switzerland’s Ambassador to Ukraine Christian Schoenenberger
KP: What does Switzerland think about Ukraine’s current political situation?
CS: We feel that the treatment of politically exposed persons here is not to the standards [that a] European country should respect and so we talk about that on the intergovernmental level.
It’s too early to say if developments are happening on the basis of these types of talks, but we feel they are listening.
KP: Ukraine and Russia have similar economic development, but there is a much bigger presence of Swiss businesses and investments in Russia as compared to Ukraine. Why is there such a distortion?
CS: We just had some businesses here that are active in Russia and in Ukraine and they said the investment climate in Russia is better than in Ukraine.
That’s what we hear from the private sector.
The investment climate certainly is the major issue. Swiss investors are rather prudent.
And, of course, the recent news about [corporate] raiding is not helpful in that respect.
KP: What are your expectations for the free trade agreement which was inked back in 2010 between Ukraine and EFTA countries?
CS: The ratification procedure has been completed. What’s still lacking is the entering into force, which could happen towards the summer. Switzerland has about 28 free trade agreements in force already.
Typically the growth rates are about 50 percent higher than with countries without free trade agreements. The economies [of Ukraine and Switzerland] are rather complementary.
The customs tariffs go down to zero for industrial and certain agricultural goods. I would say the industrial goods sector will be most affected, beneficially affected.
KP: What are the results of one of your embassy’s projects on improving Ukrainian penitentiary system?
CS: One of the elements was to bring prison directors to Switzerland to show them the Swiss prison system, discuss how you can arrange prisons to make them more amenable for mothers with children and how to separate young prisoners from older ones, because you don’t want too much cross-talk between the two groups.
Of course, it has only been something like a pilot project. This has not been applied to each and every prison in Ukraine.
KP: What are the chances of Ukraine persuading Switzerland to disclose banking accounts of its citizens suspected in financial crimes, since there has been some progress in this field made by Germany and the United Kingdom?
CS: We feel that bank relations still have to do with privacy. We want to keep the privacy.
By the same token we understand that other countries want to see the taxes they are entitled to and we think we found a very good compromise between these two objectives.
I think Switzerland would certainly have an open ear if a country like Ukraine asked for similar agreements to the ones we just signed with Germany and the UK.
KP: Wouldn’t it be ethical of Switzerland to refuse to keep money of suspicious origin from countries like Ukraine, Egypt and Libya?
CS: Today the Swiss financial center is very tightly ruled and the anti-money laundering legislation is among the toughest worldwide.
I cannot tell about each and every individual case. But the set up is there.
It can be that not each and every money flow is being stopped that should be stopped.
But we don’t want to attract black or non-taxed money. So if the suspicion is found that can be placed with the Swiss judicial system, they will look in those accounts.
KP: Do you have some hobbies that you do in Kyiv?
CS: I like cemeteries, for instance. This Saturday I was at the Baykovo Cemetery. It’s a very interesting place where you see layers of history.
When it comes to sports, I like to cross-country ski just opposite the embassy, in the park.
Kyiv Post staff writer Maryna Irkliyenko can be reached at [email protected].
