Kwasniewski promises to convey them to the West regardless of parliamentary election results in Poland

Dnipropetrovsk has hosted a two-day Ukrainian-Polish economic forum under the patronage of both Presidents Leonid Kuchma of Poland and Aleksander Kwasniewski of Poland. Among the participants were 1,500 industrialists and businessmen, members of government, and the heads of Ukrainian and Polish regional administrations. It was the second time Lithuania sent a delegation (the previous forums took place in Rzeszow). Polish, Lithuanian, and Ukrainian businessmen and officials discussed regional and border cooperation, industries, transport, construction, agriculture, electricity, and banking. This was aimed at what Ukrainian Economy Minister Vasyl Rohovy described as “contacts turning into contracts.” Many problems were uncovered, primarily concerning legislation and regulatory documents obstructing citizens’ movement, registration, business performance, and investment. In addition, Poland and Lithuania are far ahead of Ukraine in terms of economic reform and European integration. Both countries are candidate EU members. Quite recently Lithuania was admitted to the World Trade Organization. Likewise, their foreign investment parameters cannot even be compared to Ukraine’s, mirroring their respective economic attractiveness. A total of some $50 billion has been invested in Poland and DM 2.5 billion in Lithuania, a small country inhabited by 4 million. The only thing Ukraine could boast, inspiring hope in its Polish and Lithuanian partners, was some output growth achieved primarily thanks to a rhythmic experiment in metallurgy. Ukrainian-Polish foreign trade turnover remains modest at about $1.3 billion, yet businesspeople on both sides are determined to improve the situation. A Polish businessman told The Day that his colleagues participating in the forum could invest a billion dollars in the Ukrainian economy. For many investing $20-30, even $50 million “is no problem.” The important thing is to know exactly where to invest, he said, find reliable partners, finance patterns, and make promising contracts. Polish and Lithuanian businesspeople consider road construction, power industry, and gas extraction quite attractive investment spheres in Ukraine. Incidentally, developing natural gas fields in Poltava oblast is the largest Ukrainian-Polish project to date.

The forum’s specific feature was that one of the working sections dealt with electronic media cooperation and the fact was stressed by President Kwasniewski, saying that contacts and Ukrainian-Polish projects in that sphere would help develop civil society and democracy. Ukraine can obviously learn quite a few things from Polish experience, considering that it does not as yet have its own public television and radio. Juliusz Braun, chairman of the Regional Radio and Television Council, informed a section meeting that Poland, like many European countries, does not have government-run television and the public network is financed using subscribers’ fees and advertising. The latter is quite impressive against the background of economic growth: some $2.5 billion over the past five years. One of the forum’s consequences will be the opening of a Ukrainian National Television and Radio Company office in Warsaw. One only wonders why this had not been done before.

The heads of state summed up the forum in Dnipropetrovsk after visiting a Ukrainian industrial exhibit at Pivdenmash, featuring a variety of products from rockets to tractors to railroad cars, and opening a Ukrainian-Polish center to promote bilateral business contacts. Speaking the closing ceremony, Leonid Kuchma noted that, despite hardships, Ukrainian- Polish commodity turnover increased by 36% last year and 39% with Lithuania. There are several hundred joint ventures, although most of these are intermediaries, which is not quite in line with the times. Addressing Polish and Ukrainian businesspeople, he urged they expand their financial presence in the Ukrainian market primarily in machine- and shipbuilding, metallurgy, chemistry, microelectronics, and agriculture. The Ukrainian president stressed the need to cooperate in the construction of a Eurasian oil transportation corridor, setting up an international consortium and the required infrastructure. In his words, such combined efforts would considerably benefit “not only Ukraine and Poland, but also European consumers.” He promised that Ukraine would complete the Southern Port oil transport complex and Odesa-Brody oil pipeline by the end of the year.

The energy topic was continued at a press conference where Leonid Kuchma spoke for cooperation between Europe and Russia, Ukraine, and Poland, as well as for increasing gas supplies to Western Europe. Aleksander Kwasniewski announced that Poland had invited Belarus, Slovakia, and the EU to discuss all problems of the Russian- European gas pipeline, and that Poland “is looking for a finance formula with EBRD support.”

Leonid Kuchma declared that Ukraine, after the Yushchenko cabinet’s removal, will not change its course of reform and European integration “Under the constitution,” he said, “the government is the instrument, the mechanism to carry out the program with which the president of Ukraine won the last campaign.” He regards Polish- Lithuanian partnership as an important factor in Ukraine’s European integration effort, stressing, however, that “our road to the European Union depends on them over there.” So far, Ukraine is known “mostly due to Chornobyl or the cassette scandal.” Even a month ago, Mr. Kuchma said, there were no cassette scandals for Ukraine from the European community, and “the doors were closed.” There are “signals” now, he believes, and the Ukraine-EU summit is scheduled for September in Kyiv. Mr. Kuchma regards the forthcoming papal visit to Ukraine a positive factor that will foster stability in Ukraine.

The Polish president (regarded by many as Ukraine’s current “envoy” to the European community) said that Poland will not turn its back on the Eastern European partners after joining the EU. “Without a prosperous and thriving Ukraine there will be no stable Europe,” he stressed.

(See The Day’s interview with Pres. Kwasniewski on p. PERSONA)