Kazakhstan and Ukraine: towards a new stage in their relations

Relations between Kazakhstan and Ukraine are developing dynamically in an atmosphere of mutual understanding and trust. Proof of this is the growing bilateral and multilateral contacts at various levels up to the highest ones. The observance of the Year of Kazakhstan in Ukraine in 2007 and the Year of Ukraine in Kazakhstan in 2008 confirms the importance and effectiveness of bilateral cooperation and opens up new possibilities for the further development of political and business links, partnership, joint work, and cultural exchanges.

Frequent high-level contacts testify to the political will for cooperation and the desire to develop mutually advantageous relations. The political contacts of the heads of state and government, and ministers of foreign affairs underline the reciprocal interest of Ukraine and Kazakhstan in discussing a wide range of global, regional, and bilateral issues.

Also contributing to mutually beneficial cooperation is a set of over 80 legal documents, including agreements on cooperation in the commercial, economic, financial, scientific, technological, space, humanitarian, and other fields.

An important factor that is cementing the friendship between Kazakhstan and Ukraine is the cultural and humanitarian component of our bilateral relations, as well as close interregional ties. The main accords that were reached during the official visit of President Nursultan Nazarbaev to Ukraine in February 2007 are reflected on the “road map,” the Action Plan of Kazakhstan-Ukraine for 2007-08. This document is aimed at strengthening cooperation in the transport, fuel and energy, agricultural, aerospace, research, military, and technical sectors.

A positive impetus to bilateral relations was given by a business forum that was held on Feb. 2, 2007, with the participation of our two heads of state. Addressing the forum, the presidents of Kazakhstan and Ukraine outlined the main directions and prospects of bilateral commercial and economic cooperation.

The main goal now is to effectively implement the agreements reached at the highest level. Obviously, it is necessary to bring into play all the available instruments for expanding the reciprocal presence of business and capital in the two countries’ economies and carrying out worthwhile projects.

At the end of the business forum, the Chamber of Commerce and Industry of the Republic of Kazakhstan and the Ukrainian League of Industrialists and Entrepreneurs signed the Provision to Establish an Investment Board. The document is aimed at creating opportunities and opening up prospects for cooperation at the level of economic entities.

Ukraine-Kazakhstan economic cooperation now covers a wide range of long-term projects in such strategically important sectors as the production and transportation of energy resources and the aerospace industry.

A major importer of hydrocarbon raw materials and an important producer of oil and gas equipment, Ukraine has a long-term interest in the development of Caspian Sea deposits and transportation and delivery routes.

Another top-priority issue is Ukraine and Kazakhstan’s joint participation in establishing international oil and gas transit corridors, above all, developing the Odesa- Brody-Plock oil pipeline.

Still on the agenda is the question of the participation of Kazakh companies in the use of Black Sea ports. It is thought that more active cooperation between Kazakhstan and Ukraine in the sphere of transporting goods by sea, rail, and motor transport will considerably expand the geography of trade routes from Asia to Europe.

The creation of joint ventures with a view to entering European and Asian markets, the effective use of transit possibilities, the search for a model of energy cooperation that is safe in terms of international trade, the development of tourism, and the training of young personnel are by no means a complete list of the directions of the cooperation between our two states.

Economic relations with Ukraine are a top priority of Kazakhstan’s foreign policy, Ukraine being one of the outlets for Kazakhstan’s goods and services to European markets.

A more active economic interaction has resulted in the positive dynamics of bilateral trade. The foreign-trade turnover between Kazakhstan and Ukraine reached $2.53 billion in the first 10 months of 2007 (2.6 percent of Kazakhstan’s overall foreign-trade turnover). Kazakhstan ranks seventh among Ukraine’s trade partners. Imported goods from Ukraine rose by 1.8 times to $1.18 billion. Goods exported from Kazakhstan to Ukraine grew by 1.8 times to reach $1.35 billion.

Kazakhstan mostly imports Ukrainian machinery and equipment (30 percent, or $354 million), steel mill products (33 percent, or $420 million), food products (15.8 percent, or $177 million), chemicals, construction and processing industry products (16 percent, or 178.4 million). Kazakhstan’s exports to Ukraine consist mostly of oil and oil products (82 percent, or $1.1 billion) and steel mill products (14 percent, or $188 million).

The diplomats of our two countries have shown an increasing economic component in their work over the past few years. There have been regular economic steps aimed at developing commercial and economic cooperation, studying questions related to bilateral legal and negotiating documents, and assisting Kazakh and Ukrainian businesses.

Enterprises are establishing contacts and ties and actively consulting each other about setting up offices in our two countries. An important tool for joint projects is consortium credits issued by Kazakh and Ukrainian banks.

One factor that is promoting bilateral relations and the commodity turnover is the institutional component, the establishment of representations and joint ventures. For example, an office of Kazakhstan Railways in the CIS European and Baltic countries was opened in Kyiv in February 2006. Projects have been drawn up to transport aluminum oxide and ferrous-metal pipes, as well as to organize Odesa-Central Asia-Almaty and Dostyk-Odesa container-train communications. The Railway Administration of Ukraine is helping to quickly resolve problems related to the use and repairs of Kazakhstan’s rolling stock and to create favorable tariff conditions for the growing transportation of goods. Ukraine has set preferential rates on practically all Kazakh transit commodity flows across its territory.

As a result of the one-sided economic development during the Soviet era, Kazakhstan is experiencing a shortage of specialists and technologies in metal processing, mechanical engineering, and the aerospace industry. At the same time, Ukraine has a powerful scientific and industrial groundwork, a sufficient number of specialists, and a high level of education. Today there are 124 joint Kazakh- Ukrainian ventures in Kazakhstan.

Cooperation in the cultural and humanitarian field is developing quite actively, too. The main directions here are still education, research, culture, tourism and sports, strengthening regional ties, assisting the Ukrainian diaspora in Kazakhstan and the Kazakh diaspora in Ukraine to satisfy their cultural needs, and supporting their ties with their homelands.

The Ukrainian community in Kazakhstan is one of the largest Ukrainian diasporas: it is the world’s third-largest Ukrainian community. There are approximately 450,000 ethnic Ukrainians living in Kazakhstan. As the second largest minority in Kazakhstan, Ukrainians live in all areas of the republic, but most of them are concentrated in Akmola, Pavlodar, Karaganda, and Kustanai oblasts.

The Ukrainians of Kazakhstan are an important demographic, intellectual, and socio-cultural resource for the expansion of contacts among people and the development of cooperation between our two countries.

Bridging our two nations is the great Bard Taras Shevchenko, who served a term of exile in Mangistau oblast in 1850-57, and in whose memory Fort-Aleksandrovsky was renamed Fort-Shevchenko in 1939. The city of Fort-Shevchenko honors the Bard’s memory with its museums and galleries, and local residents are giving their sons the fashionable name of Taras.

There are 23 Ukrainian national cultural centers in the republic, a Ukrainian-language daily, Ukrainski novyny (Ukrainian News), Ukrainian-language TV programs, Ukrainian Sunday schools, and artistic companies. The Association of Ukrainians of Kazakhstan works fruitfully to revive and promote the Ukrainian language, culture, national traditions, and customs.

The cooperation among our two countries’ research centers, especially between Kyiv National Taras Shevchenko University and the Lev Gumilev Eurasian National University, allows academics and students to develop the scientific and technological potential of both countries.

Our strengthening interregional contacts also occupy an important place in Kazakh-Ukrainian bilateral relations. The declaration of 2007 as the Year of Kazakhstan in Ukraine by the two heads of state offered immense opportunities for cooperation.

An important interregional legal document is the agreement on commercial, economic, scientific, technological, and cultural cooperation between the Karaganda and Dnipropetrovsk oblast administrations. The trade turnover between Dnipropetrovsk oblast and Kazakhstan is expected to top $500 million as of the end of 2007.

Cooperation with Lviv oblast is also on the rise. The two sides have resolved to study the possibility of supplying oil drilling rigs to Kazakhstan’s Mangistau oblast and signing an agreement on cooperation in health care, including the treatment of children with cerebral palsy at the Lviv-based Dzherelo Rehabilitation Center.

The cooperation between Kazakhstan and Ukraine is an example of a quest for the best possible model of fruitful interaction between two independent states. The level of relations that has already been achieved is based on a wealth of traditions and the principles of equality and mutual respect. The next meeting of presidents Nursultan Nazarbaev of Kazakhstan and Viktor Yushchenko of Ukraine are sure to provide a new impetus to mutually advantageous cooperation between our two states, which have a tremendous potential for the benefit of our two nations.