On October 14 President Kuchma completed his official four-day visit to the Libyan Jamahiriya. As Libyan leader Colonel Muammar Qaddafi put it, his country is ready to cooperate with Ukraine, for example, in the oil and gas sector, shipbuilding, aerospace, and agriculture. Pres. Kuchma discussed with Shukri Ghanem, Secretary of the Supreme People’s Committee (Prime Minister) of Libya, the possibility of holding forums with the participation of business circles of the two countries. During the visit, Pres. Kuchma took part in the opening of the Libyan offices of Naftohaz Ukrayiny and Interbudmontazh companies. Naftohaz Ukrayiny and the National Oil Company of Libya signed a memorandum on cooperation, under which four oil fields have been conceded to Ukraine. Agreements were also reached on Ukraine’s participation in the development of Libya’s infrastructure. In particular, Transport Minister Heorhy Kyrpa told journalists that in the coming months the Ukrainian side will draw up a feasibility study on the construction of a 992-kilometer long railroad from Libya’s Mediterranean coast to the African hinterland worth some two billion dollars. “They have firmly promised we will carry out the construction because our prices are the lowest,” Mr. Kyrpa said. Although Ukraine has long been in close contact with Libya, the agreements signed have thus far been put into practice very slowly. The Day approached Oleh DUBYSH, Chairman of the Board of the Ukraine-Libya Friendship Association, with the question: what can we expect from the agreements reached during Pres. Kuchma’s visit to the Jamahiriya?
“It was the first visit at such a high level in the history of our bilateral relations. So I think its results will be somewhat different from those of the previous contacts. By force of its political setup, Libya is a unique country. Besides, it was in a certain international isolation due to UN sanctions. With this in view, the Libyan leadership attaches great importance to its level of political contacts with different countries, bringing economic cooperation in line with his level of contacts. Most importantly, this visit showed the Libyans that Ukraine’s top leadership is interested in developing cooperation with Tripoli. It is also significant that Ukraine’s president is the third head of state to have visited Libya after the sanctions were lifted. Before him, Tripoli received Prime Minister Jose Maria Aznar of Spain and President Megawati Sukarnoputri of Indonesia. Spain has always maintained regional contacts with Libya, while Indonesia is the world’s most populous Muslim country.
“In Libya, a great number of decisions is made personally by Col. Qaddafi. I therefore hope that this time the agreements will be put into practice. Moreover, we already have a substantial record in this region. It is no accident that the President opened a Naftohaz Ukrayiny office. Its role in Libya will not be confined solely to helping develop the Jamahiriya’s oil sector. It is quite possible that Pres. Kuchma discussed during his visit alternative oil supplies to Ukraine or even the filling of some well-known oil pipelines.
“The opening of an Interbudmontazh office has created prospects for Ukraine’s participation in the development of Libya’s infrastructure. This company is very active in a number of regions, including Central Asia, with which we also maintain contacts in the fuel sector. I think our cooperation in the aerospace industry will also now get a powerful impetus. I would not be surprised to hear that, with the UN sanctions lifted, our delegation also discussed a wide range of issues in the social sphere as well as cooperation on specialized projects.”
“Competition is very intensive on the Libyan market. In what way can Ukrainian business use the opportunities created by Pres. Kuchma’s visit?”
“I always compare Libya with an eligible bride. There are very many who would like to cooperate with that country now that the UN has lifted its sanctions. So we should not loosen up. One should also take into account the specific Arab mentality and the fact that every leader cares about the interests of his country.
“It is European Union countries that are our major rivals on the Libyan market. The structure of Libya’s trade balance shows that its strategic partners are Germany and Spain. Britain also stands very good chances of expanding cooperation, especially considering the fact that the British Foreign Office was the first in the West to establish adequate contacts with Tripoli. Moreover, I do not think Russia will remain indifferent to such a vast market. It should be noted that, following the collapse of the USSR, we lost certain ground, and visits like that of Pres. Kuchma to Libya, are very important for restoring the relations because all Soviet export organizations functioned in Moscow. Belarus also maintains close contacts with Libya. President Lukashenka has also been to Tripoli.
“First of all, Ukrainian businessmen should get rid of the Soviet-style mentality and drop the idea that ‘we are so clever, big, and omniscient that we’ll dump second-hand items and obsolete technologies in the third world.’ The Libyans are versed in modern technologies and know what is going on in certain segments of the market. This is why our businessmen will lose out if they think that the president’s contacts alone will help them capture the Libyan market by sending uncompetitive goods to that country. Conversely, if they offer competitive goods and services, our political relations will undoubtedly benefit from this cooperation. Libya has made considerable strides in market transformations, so we, its partners, should adhere to the principle that being determines consciousness. I do not think Qaddafi will order doing something that runs counter to the Jamahiriya’s economic interests.”
