Appetite comes as you eat. This is apparently also true of the popularity of the Ukrainian luncheon and foreign investors’ interest in Ukraine. One hundred and eighty people took part in the luncheon conference “Ukraine: What’s Next” and some 250 couldn’t for want of seats, Viktor Pinchuk, the organizer of the fourth Ukrainian luncheon conference, told journalists. After the conference he supported the idea of throwing a party in Davos next time. The head of the Viktor Pinchuk Foundation is prepared to make arrangements together with other leading Ukrainian businessmen and philanthropists.
The great deal of interest shown in Ukraine in Davos is explained not only by the fact that the luncheon menu included such famous Ukrainian dishes as borsch, salo fatback, and varenyky dumplings. President Viktor Yushchenko visited Davos for the first time in three years after the Orange revolution. Apparently, businesspeople wanted firsthand information about Ukraine’s priorities for the nearest future. Also, there is the factor of 2012 European soccer championships being organized by Ukraine and Poland. This means building roads, stadiums, and other elements of the infrastructure.
The Ukrainian president spoke about Euro-2012 and listed a number of interesting proposals for investors. He said that some 25 billion dollars must be invested in the Ukrainian economy for the development of sports infrastructure and construction projects. The Ukrainian head of state offered the world economy an investment package including the privatization of Ukrtelecom and road construction worth a total of five billion dollars, also projects involved in the completion of the oxidized iron works in Kryvy Rih.
Yushchenko expects that Ukraine will for the first time take part in the New York Stock Exchange’s listing in 2008, and submit a dozen national enterprises.
As for 2008 priorities, Yushchenko said that talks with the EU on a free trade area are the number one priority; Ukraine also counts on political association and economic integration with the EU within the framework of talks on a new expanded treaty that have begun in Brussels.
Yushchenko stressed that Ukraine’s economic relations with Russia have good prospects and the immediate task is to uphold a political dialog: “This is precisely why I’ll visit Russia on Feb. 12: to optimize our political dialog.”
In conclusion, the Ukrainian president said he is sure that the government’s political course for 2008- 09 is being supported by Ukraine’s partners and will help his country better integrate into the economy of other states.
Interestingly, against the backdrop of economic decline underway in the United States, and which has affected many other countries, Ukraine is regarded as something like an example of dynamic growth worth being emulated. Anyway, such is the opinion of Fred Bergsten, a noted US economist, president of the Peterson Institute. He believes that the slowing growth of US economy will not have any negative effects on Ukraine or other countries in this part of the globe; that Ukraine would make a wise move by adopting a more flexible exchange rate system, for this would help protect its economy against both internal and external shocks and upheavals originating elsewhere in the world. He further suggested that Ukraine would be better off to adjust its exchange rate course to the euro, not dollar, since Ukraine plans to join the EU; that for Ukraine it would be a step forward, toward integration into the European economy and strengthening its own financial system.
Jean Lemierre, president of the European Bank for Reconstruction and Development, said Ukraine is an attractive country with an attractive economy, and that “we will continue investing in the economy of Ukraine.” He also admitted that investors expect the competitiveness of this economy to increase. He noted that Ukraine’s infrastructure should be developed not only for soccer, but for enhancing the economy’s competitiveness.
Time will show whether these plans of the Ukrainian government will come true; whether Kyiv will consider the warnings made by leading economic experts and investors’ suggestions — or whether the question “What’s next?” will remain on the agenda for the next Ukrainian luncheon in Davos. Everything will depend on the incumbent government, parliament, and president, considering Ukraine’s plans and priorities he announced in Davos.
