• Українська
  • Русский
  • English
Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Motorola Comes Back

16 February, 1999 - 00:00

Kharkiv's Komunar (Communard) Plant and America's Motorola intend to launch
a joint venture to produce walkie-talkies.

A few years ago this plant and America's Federal System Group Co. set
up a joint venture to make cellular telephones. The Nunn-Lugar Foundation
(a project of two US Senators to support conversion of military production
in the former USSR) allocated $2 million. The American partners began to
deliver equipment but then suddenly discontinued cooperation.

The well-known Kharkiv Initiative has revived the project, strengthening
the reassurance of another US firm, Motorola, which had once burnt its
fingers in Ukraine and abandoned our market, slamming the door.

The newly-established enterprise is manufacture 12,000 units in its
first year of work and then bring annual output up to 80,000. The potential
users of these products are security agencies, police, the National Guard,
and firefighters.

The future joint venture is expected to have $5 million in authorized
capital. Out of this, two million must be contributed by the US Defense
Department as compensation for losses Komunar incurred as a result of failed
contracts in the past.

However, nothing is ever completely certain. During a working meeting
of Kharkiv Initiative project directors, Kharkiv Governor Oleh Diomin and
coordinator of US aid to the newly independent states William Taylor, the
latter said the issue of financial and technical aid would soon be on the
agenda of the US Congress and the solution would depend on positive conclusions
by US Secretary of State Madeleine Albright. She in turn ties her conclusion
to the progress of economic reforms in Ukraine and the performance of US
companies here. Motorola seems to be sure the US government will not this
time leave it to face Ukrainian bureaucrats alone.

Many of our industrialists and entrepreneurs hoping to get US aid will
probably be disappointed. No great hopes should be pinned on American money,
although Mr. Taylor controls billions. The partners will, at best, supply
equipment to what are known as Kharkiv pilot enterprises. Meanwhile, judging
from foreign press reports, many US Congressmen believe that a sizable
part of American aid to underdeveloped countries settles down in the pockets
of Beltway bandits, high-priced Washington-area consultants, and the funds
appropriated are usually used to pay for their services. The US Agency
for International Development has already announced a competition among
US consulting firms to service the Kharkiv Initiative. A consortium of
experts and consultants is also being formed: the positive side here is
that it will also include Ukrainian specialists.

In fact, the very first documents signed by Mr. Taylor and Mr. Diomin
said that the aim of the Kharkiv Initiative is to create a favorable investment
climate in Eastern Ukraine and to smooth the initial stages for big and
medium business. So everything is in earnest and according to the well-known
proverb: eat slowly, and you'll get more.

 

Thanks to Kharkiv Initiative
Issue: 
Rubric: