The key to the Middle East
Ukraine’s exports to Egypt have nearly reached one billion dollars
Yevhen Mykytenko, the Ambassador Extraordinary and Plenipotentiary of Ukraine to the Arab Republic of Egypt, is convinced that Cairo is one of the “keys” to Ukraine’s effective access to the Middle East. This Ukrainian diplomat’s posting to Egypt dates from September 2006. He has headed Ukrainian diplomatic missions in Saudi Arabia, Syrian Arab Republic, and the United Arab Emirates, and he is fluent in English and Arabic.
What successes has Ukraine achieved in its cooperation with Egypt? What measures should be adopted to improve Ukraine’s support in this region in terms of quality, scientific analysis, and prognostication? These and other questions are discussed in The Day’s exclusive interview with Yevhen MYKYTENKO.
Mr. Ambassador, the last time we talked you stressed that Egypt is the key country in the Middle East. I think we are all aware of the political and economic importance of this region in the life of our planet, even if we consider its energy supplies alone. If I understand correctly, key countries should be used to penetrate this region. Do you think we are making any progress on this road?
I believe that the following statistic is the best answer to your question: in 2007 Ukraine’s foreign trade turnover with Egypt totaled $1.36 billion, with 915 million dollars’ worth of Ukrainian exports.
You touched wood last time when we were discussing this possibility.
That was a joke. Of course, what really matters is not touching wood but painstaking work on the part of government-run and private businesses, business-minded circles in our government, and diplomats.
What do Ukraine’s indices look like compared to its closest neighbors?
By way of comparison, Egypt has a commodity turnover with Poland valued at $300 million. Cairo regards our western neighbor as an “advanced country of the new Europe” and as “Europe’s sixth strongest economic force.” During President Hosni Mubarak’s recent visit to Warsaw the leading Egyptian newspapers stressed Poland’s role of “informal leader” of the so-called New Europe.
The last time we spoke you said that our cooperation with Egypt is not restricted to the goods component and that it is especially fruitful in the sphere of innovative technologies. Has any progress been made there?
Last April the Ukrainian carrier rocket Dnipro-1 launched Egypt’s first remote sensing satellite, the Misr Sat-1, to orbit from Baikonur, which was created in Ukraine by Ukrainian and Egyptian specialists. A team of Ukrainian experts is in Egypt to finish work on a ground control center scheduled to start functioning this year at the Egyptian space center near Cairo.
I see this as a special event in the history of our bilateral relations. Are high-ranking guests from both sides expected to attend it?
Yes. Our Egyptian partners and we attach a great deal of importance to this event.
Could you talk a bit about this program?
During the first stage, which will last six months, the Misr Sat-1 ground control station will be manned by a joint Ukrainian-Egyptian team. The Ukrainians will help the Egyptians operate the station, prepare it for receiving the satellite’s photos of Lake Nasser, the Nile, and promising sites in the Western Desert and elsewhere in Egypt.
It is especially gratifying to know that Ukraine has managed to surpass such innovative technology heavyweights as the United States, Russia, the European Union, and China. By the way, what are Egypt’s relations with these world heavyweights?
You’re asking a very interesting question that cannot be answered easily. The Middle East has become a leading center where a new kind of world geopolitics is being formed. Considering that Egypt is involved in practically all the problems afflicting the Middle East, being the “key” to this region, all these heavyweights are showing a special interest in it.
There must be competition among them?
Of course.
Who is in the lead? The US?
You know, Egypt’s foreign policy is anything but simple. I think we can learn something here. Even though Egypt is the world’s second country, after Israel, in terms of receiving US aid (every year Egypt receives $1.3 billion and $800 million in military and other kinds of assistance), it knows how to use its strategic position in this region.
On the one hand, Egypt maintains friendly relations with the US as an important lever in its struggle for leadership in the Arab world (primarily in relation to Saudi Arabia). On the other, taking advantage of Washington’s interest in “moderate allies” in the Middle East, official Cairo has succeeded in substantially limiting White House interference in Egypt’s domestic affairs.
Is Egypt flirting with the US’s major rivals?
I would use the term “maintaining balance.” People in Cairo are well aware that, despite the numerous problems in the Americans’ Middle East policy, the other heavyweights will keep doing what US experts on the Middle East call luring Arab countries out of the American camp. Using elements of “real politics” in regard to the “strong ones of the world” brings Egypt considerable benefits, including financial ones.
Do you mean US aid?
Not just. In February 2007, during the visit to Egypt of the European Union’s External Relations Commissioner Benita Ferrero-Waldner, it was announced that the EU was giving Egypt 558 million euros to support its reforms. She also repeated EU Trade Commissioner Peter Mandelson’s statement about Egypt’s impressive economic progress over the past couple of years and its headway in bilateral cooperation.
Considering our European aspirations, we could learn something from the Egyptian experience.
Strange as it may seem, we could. For example, the EU-Egypt trade turnover annually shows a 20 percent increase, and Egyptian exports to EU countries have reached three billion dollars. The European Union also ranks first among investors in the Egyptian economy (more than 50 percent of all investments).
How is our eastern neighbor Russia competing with the US and Europe in the Egyptian field?
Well, it is trying to. Last year, during the visit to Egypt of Russia’s Industry and Energy Minister Viktor Khristenko, a memorandum of understanding was signed to create a one million sq. meter Russian industrial zone in Borg El Arab (30 km west of Alexandria).
What will it specialize in?
This industrial zone will specialize in the automotive and aircraft fields, and will also produce equipment for power plants and oil refineries. The Egyptian side has also showed an interest in starting computer, seawater desalination, and medical equipment businesses. Some of the products from this industrial zone will be exported to other countries in the Middle East.
Egypt’s well-balanced policy, considering the involvement of such powerful countries, must serve to increase its prestige in this region. After all, the Middle East is located on the trading crossroads, and the ability to use the points where the interests of various countries meet has always been esteemed on the Middle Eastern market.
Much water has flown under the bridge, but I have to agree with you that Egypt’s well-thought-out policy in regard to all those “heavyweights” has helped it gain the status of a “third power” in the Middle East, an “independent operator,” and “balanced and reasonable peacemaker.” This makes it possible for Egypt to successfully compete with other potential leaders of this region, like Iran, Israel, or Saudi Arabia.
Which of these countries can boast of certain advantages compared to Egypt?
Iran is currently described as a country with “imperialistic ambitions” in that it wants to develop the Middle East the way it sees it, and, most importantly, because it can afford to translate these intentions into life. Iran owns 16 and 10 percent of the world’s gas and oil deposits, respectively. It is also actively developing a nuclear program. Israel is the only country in this region with a modern economy that can compete internationally. It has a nuclear arsenal and the most modern armed forces in the region. Saudi Arabia has 25 percent of the world’s oil deposits and wants to become the leader of the Arab world.
Just like Egypt?
Precisely. Cairo is convinced that in having one of the Middle East’s strongest armies and largest populations, along with a balanced regional policy and strategic position (being involved with the problems in the Middle East and Africa), these factors give Egypt every reason to call itself the “leader of the Arab world.”
Be that as it may, the effectiveness of the policy of any country, in the Arab world in general and the Middle East in particular, largely depends on good relations with Cairo, which is the headquarters of the League of Arab Nations.
It is gratifying to know that Ukraine has succeeded in establishing fruitful cooperation with this “key to the Middle East.” Do we have any reserves left to expand this cooperation? Can we get any closer to the world’s “heavyweights”?
We are convinced that we can. There are proposals concerning the realization of Ukraine’s priority targets in developing relations with Egypt and other countries in this region.
Could you be more specific?
We believe it is necessary to proceed from the need to preserve and actively utilize the factor of Ukraine being equally close, politically as well as economically, to the key participants in the Middle East conflict. This makes it possible to play a more active role in helping the international community to resolve regional problems.
This also allows us to conduct a more aggressive policy aimed at developing business contacts with the countries in this region, particularly in the metallurgical, metalworking, and agricultural spheres.
We should keep our rivals in mind, shouldn’t we?
Stepping up Ukraine’s potentially influential political and economic policies in the Middle East, after gaining WTO membership, implies a higher degree of competition between Ukraine and the region’s traditional industrial suppliers (primarily Russia, China, India, and Germany), and the agricultural ones (US, France, and Australia).
Under these conditions it is important for Ukraine to expand its network of diplomatic missions, boost the activities of its trade missions and military attaches, create a vast international legal network for bilateral relations, arrange top-level visits, be an active member of international organizations and forums on matters relating to this region, and implement well-thought-out political initiatives.
I am also convinced that the Middle East is turning into a major global political center, so Ukraine must take measures to qualitatively improve the scientific, analytical, and prognosticating support for its foreign policy in this region.
What practical measures should be adopted?
An effective and permanent interdepartmental work group must be created in order to revise Ukraine’s basic policy principles in the Middle East, keeping in mind all the important changes that have occurred in the world in general and in this region in particular over the past couple of years.
Also, world and domestic experiences are convincing proof that it is important to help increase the role of civic organizations in the implementation of the tasks that Ukraine is facing in its Middle East policy, in the development of its relations with Middle Eastern countries.
In view of Ukraine’s comparatively substantial representation in this region, if this political and business model is effectively translated into reality, it could also be used to strengthen Ukraine’s contacts with other compact but important regions, like Southeast Asia, Latin America, and so on.
I think the time has come for us to prove we can be on the world’s Top Ten List, not just in terms of soccer.
Mr. Ambassador, thank you for your time. Speaking of soccer, Egypt’s national team recently won the African Cup of Nations.
Yes, and I might add that this is the second time.
Do you think that a friendly Egypt vs. Ukraine soccer meet would be an interesting project?
I am sure it would be. As a soccer fan, I can tell you that the Egyptian and Ukrainian national teams are matched in terms of strength, as well as Cairo’s Al Ahli Club, the African Cup champion, and Kyiv Dynamo or Donetsk Shakhtar. I am convinced that such friendly matches would help confirm Ukraine and Egypt’s images as friendly and mutually beneficial partners.