Whoever reads news in London or Ukraine is aware that the world financial system is going through a period of radical changes. The harsh reality is that nobody can be protected from the financial crisis anywhere and, although we may have passed its peak, we are all still facing, as before, very serious economic challenges. Besides, politicians, regulators, financiers, as well as the broad strata of the population in many countries, are still to decide on the way to move forward. The key question is to find out what is to be done to prevent the crisis from recurring – and then do this.
There have been some doubts that London still is world financial center, especially when there are such centers in Asia as Hong Kong, Singapore, and Tokyo. Although Asia has undoubtedly seen a period of powerful upsurge and there has been, to a certain extent, an eastward shift of the world gravity center, London (and New York) has nothing to fear, for the absolute size of the economic pie is always on the rise. Thanks to its position in the world time zones, support of English commercial law, and the available tremendous reserve of capital and expertise, London continues to show steadfastness in difficult market conditions. Take, for example, the London Stock Exchange: markets remain liquid and open to business during a financial crisis. The London Stock Exchange continues to ensure access to the world’s largest stock capital market. It allowed more companies than any other stock exchange did to successfully gain profits; it offers an excellent choice of the range of accessible markets as well as the ways of entering the latter.
As I am an ambassador of the UK-based industry of financial services, my visit to Ukraine was, naturally, aimed at drawing the attention of Ukrainian companies interested in international financial and consulting services to the City of London as a world financial center. But my visit to Ukraine is by no means confined to promoting the City of London and the London Stock Exchange. The guiding motif was the desire to help forge links between our two countries. For the UK, Ukraine is the most important country of Eastern Europe, a country of tremendous possibilities and, frankly speaking, challenges. International companies – British as well as those based in the UK – are very much aware that, along with mature EU markets, there are countries, such as Ukraine, which offer a promise of powerful growth when reforms have been carried out. And it is clear that later, when Ukraine meets the required membership standards, it will be a natural candidate for closer official links with Europe.
All kinds of foreign investments – from small-scale financial, insurance and pension business, which are an integral part of the City, to various consumer goods industries – are awaiting a proper moment. The companies that aspire to be strong European players are keenly aware that the future belongs to Ukraine – with a population of almost fifty million and a successful and stable economy supported by a predictable, fair and transparent system of government. This is the gain we are striving for and the goal we are all working to achieve. The United Kingdom is a key investor to Ukraine, and although the Ukrainian financial sector is relatively young so far, we are in for a turning point. Ukrainian companies and organizations are coming to Britain, and there is also a reverse process. We are entering a period of great opportunities, but still the key to growth stimulation is economic reforms. Besides, to ensure a successful future as a full-blooded democracy, Ukraine needs a period of stability to be able to implement these reforms. The long-term prospects of Ukrainian business also depend on the further success of these reforms.
I have visited Ukraine to provide support for the Ukrainian people (incidentally, my grandfather was born in Ukraine) and emphasize the importance of Ukraine fulfilling the obligations it has assumed to the IMF, the EU, and other partners. But, above all, at the time of tough economic hardships, I wish to promise Ukraine a successful future if it manages to successfully overcome all the obstacles in the course of the implementation of reforms.
In a way, there is a totally egoistic motive behind this: as bilateral trade makes up about 750 million pounds a year, both Ukraine and the UK are going to benefit from any improvement of this indicator.
