A number of experts refer to the relations between Ukraine and Belarus as exemplary. Both countries are demonstrating their preparedness to meet each other halfway in resolving problems that impede their mutually advantageous cooperation. Despite the Orange Revolution and ongoing political struggle in Ukraine, the bilateral trade turnover is on an upward curve, with ranking politicians visiting both countries.
Not so long ago, President Alexander Lukashenko of Belarus paid an official visit to Ukraine. During this visit a major problem of the bilateral relations was solved. Lukashenko promised his Ukrainian counterpart Yushchenko that the Belarusian parliament would ratify the treaty on national frontiers, signed back in 1997. How did Minsk and Kyiv manage to agree on this and on Ukraine’s paying off its debt to Belarus that has existed since 1992, hindering ratification of the above agreement by Belarusian parliament? How has the world financial economic crisis affected the trade relations between Ukraine and Belarus? Did the two heads make decisions on concerted action to overcome its consequences? These and other questions have been answered in the following interview by Valentin VELICHKO, Ambassador Extraordinary and Plenipotentiary of Belarus to Ukraine and currently the dean of the diplomatic corpse.
Mr. Velichko, President Alexander Lukashenko’s visit to Ukraine proved quite successful. A number of experts doubted that he and Yushchenko would succeed in solving the problem of Ukraine’s debt to Belarus, considering that this problem prevented Belarus from ratifying the bilateral frontier treaty. How did the heads of states manage this breakthrough?
“I would start by saying that the arrangements for this visit had started earlier than this year, with every aspect being carefully worked out. When President Alexander Lukashenko of Belarus and President Viktor Yushchenko of Ukraine met in Chernihiv, a memorandum was signed on measures to step up trade cooperation in conditions of crisis that had started earlier this year. This document was signed by First Deputy Prime Ministers Vladimir Semashko and Oleksandr Turchynov and the heads of the national banks. This was the starting point; under the circumstances, it enabled both countries to combat the negative effects of the world crisis. According to this document, both governments were instructed to work out top priority measures to reduce to a minimum the consequences of the economic crisis.
“When the two presidents met in Gomel [Belarus], they decided that an official visit [to Ukraine] was in order. After that, intensive efforts were made to produce documents to prove that this visit would be not just another protocol gesture but would have actual results for both countries. One ought to give due to the effective performance of the bilateral Intergovernmental Commission. During his visit to Kyiv, the Belarusian prime minister made top-level arrangements for the presidential visit. Ukrainian Foreign Minister Petro Poroshenko, while on a working visit in Minsk (October 19), specified the practical aspects of the earlier arrangements that served as the basis of the official visit.
“Let me point out that there were certain issues that were processed with over the years but were postponed in the absence of a practical solution.”
Do you mean Ukraine’s debt to Belarus?
“Precisely. It so happened that, after the two presidents signed the national frontier treaty in 1997, this instrument for various reasons remained unratified until both heads of state issued a joint communique and then told a press conference that this treaty would be submitted to parliament to be ratified. In fact, this treaty had little effect on the people’s daily routine. The border checkpoints kept operating in the usual mode, so the absence of this treaty practically never affected anyone’s life. Moreover, there have never been any territorial claims on the part of either country.
“However, the absence of an instrument legally sealing the national frontier served as a factor that impeded Ukraine’s integration into the European Union or other structures. Now this factor has been practically eliminated.”
Can we expect this treaty to be ratified by year’s end?
“Once this item is placed on the agenda, it will be put to vote. I can’t recall a single case when someone objected. There will be no problem.”
Mr. Velichko, how do you feel about Russia’s response to the Belarusian president’s visit to Ukraine and the resulting bilateral accords? Russia doesn’t seem to be happy about this visit.
“We are pursuing a good neighbor policy, building our relations with the neighboring countries on a mutually advantageous basis. All our efforts are aimed at securing the interests of our peoples, raising their living standard, and strengthening the economic potential of our countries. Even during this visit we held nothing back, kept nothing away from the public eye. Alexander Lukashenko stated, while in Kyiv, ‘We are not making friends to make anyone else’s enemies. All we want is for our peoples to be friends and live well.’ Like it or not, the time has come to form bilateral relations proceeding from the circumstances that have developed. There have been essentially no statements [from the Kremlin] about this visit. Certain opinions have been expressed, but one ought to understand that these reflect the perception by individual politicians.”
With bothUkraine and Belarus suffering from the financial crisis that broke out last year, how has this situation affected our trade contacts? Did our heads of state make any specific decisions on joint efforts to overcome the consequences of this crisis?
“Indeed, during the meeting both sides outlined a series of measures to be taken to uphold cooperation and increase bilateral trade. An agreement on borderland trade was signed. This will make it possible for Volyn, Chernihiv, Rivne, Zhytomyr, Kyiv, Brest, and Gomel oblasts to hold fairs and sell products that are produced in our country in conformance with quality standards.
“I would like to point out that in this trying period our countries have achieved an understanding that we need to agree on cooperation and the production of component parts. Neither country should levy VAT on parts that are used to manufacture finished products, otherwise production costs rise, profitability drops, and the consumers have to pay for everything. I can tell you that some 40 Ukrainian businesses are involved in this cooperation.
“I think that another good sign is that the [Belarusian and Ukrainian] national banks have realized that the mutual payments should be made in the respective national currencies, for this will serve to expand the mutually advantageous bilateral trade. In addition, our banks have made it possible to open and use correspondent accounts. I think this practice will be upheld.
“Another incentive for our cooperation is the setting up of joint ventures that are effectively operating on a mutually advantageous basis. We have joint ventures that assemble tractors, elevators, railroad cars, and agricultural machines. Owing to the crisis, a new kind of cooperation has emerged: production of foodstuffs. Belarus will be able to produce over seven million tons of milk next year. This will make it one of the world’s top five per capita milk producers. There are joint ventures in Ukraine that use raw materials supplied by Belarus; this makes it possible to sell their products on the domestic and foreign markets.
“On the other hand, crisis being what it is, our machine-building complex is using only Ukrainian metals. Two-thirds of our industrial equipment is being made using Ukrainian metals. Ninety percent of pipes are imported by Belarus from Ukraine. The bulk of the railroad cars are made using Ukrainian components.
“Ukraine has always been a reliable supplier of agricultural products. Last year we bought over $450 million worth of them. This allowed us to have the record trade turnover of five billion dollars. Ukraine has become our second largest strategic partner, and Belarus is among the top ten countries with which Ukraine has trade relations.”
