Business news

KIEV, 20 July (BelTA) - Contracts worth more than $40 million will be signed during the Belarusian-Ukrainian Business Forum due in Kiev on 21 July, Belarusian Ambassador to Ukraine Igor Sokol told the media, BelTA has learned.

“Over 300 participants from both sides have already registered. According to preliminary estimates, the contracts to be signed are worth over $40 million. This will be an exciting and intensive event in terms of the development of trade and economic relations,” the diplomat said.

Speaking generally about the bilateral trade and economic cooperation, Ambassador Igor Sokol noted it has been developing rapidly as evidenced by contacts at the level of governments and the heads of state. “In absolute terms, we closed 2016 with $3.8 billion in trade, with the Belarusian export to Ukraine amounting to $2.8 billion. In January-May 2017 the results were good: the trade was $1.7 billion, Belarusian exports to Ukraine came at $1.3 billion. In percentage terms, the increase came across all positions, including trade, export, import, and was over 20%,” the ambassador said.

Belarus’ major export item to Ukraine is petroleum products. Belarus holds from 60% to 70% share of the Ukrainian market across various kinds of products. “Belarus-made fuel is highly valued here. Belarusian oil refining products are in demand,” said the diplomat. He added that the company BNK-Ukraine is one of the largest taxpayers to Ukraine's budget and is developing its own network of petrol stations.

According to Igor Sokol, the export of other commodities has increased as well. “This suggests that Ukraine has been the most important trading and economic partner of Belarus and will remain so,” he said.

The ambassador urged Belarusian exporters to work actively with Ukrainian regions because the budgetary process in the country was decentralized and major tax revenues – around 60% - now remain in the regions. There are opportunities to join a number of infrastructure projects in the regions. “These include the renovation of road networks, passenger fleets, municipal machinery. In this regard, our potential is quite high,” Igor Sokol said.

The diplomat also spoke about the development of industrial cooperation. Currently, the two countries have 13 joint assembly plants, of which 7 are located in Ukraine.

Belarusian quarry equipment is also in demand in Ukraine. A contract for the supply of BelAZ vehicles worth of $5 million is expected to be signed during the forthcoming business forum.

Belarusian exports to Ukraine are facilitated by the decree adopted by the Belarusian president on the export financial support, the ambassador said. This process involves two major Ukrainian banks that reimburse part of the interest rate to the buyer of an engineering product in Belarus. “An agreement with the third bank will be signed during the forum tomorrow,” the Belarusian diplomat said.

Belarus and Ukraine are developing cooperation in the service industry, too. Igor Sokol mentioned the Belorusneft company in this regard. The company is co-implementing hydraulic fracturing projects to enable the extraction from deeper oil pools. Belarusian road constructors who have won a number of tenders are actively working in the Ukrainian market.

Agribusiness is another attractive branch of Ukraine’s economy. “This is about the export of our agricultural products, tractors, potash and nitrogen fertilizers. Belarusian Potash Company has registered its branch company in Ukraine just recently. We are ready to share our achievements in agribusiness in future,” Igor Sokol said.

“There is quite intensive cooperation in all fields enabling cooperation at the interstate and intergovernmental level,” the diplomat emphasized.

Speaking about the possibilities emerging as a result of Belarus’ membership in the EAEU and the Ukraine-EU association agreement, Igor Sokol stressed that there are no controversies in this context. “We should take advantage of Ukraine’s opportunities and Ukraine should use ours to enter relevant markets. A large share of Belarus’ products is certified in compliance with the EU standards. We can share some experience with our Ukrainian partners and penetrate the EU markets via Ukraine taking into account the preferences it has in trade with the EU,” Igor Sokol noted.

There are some opportunities opening up for participation in infrastructure projects. For instance, a project on Belarus-Ukraine border demarcation can be financed by the EU. “We have submitted a joint application for financing to the EU. The project is estimated at €2.8 million. The matter of demarcation is currently at the initial stage. We have done the most part of our job,” Igor Sokol clarified.

The diplomat also commented on the progress in the implementation of a project to build a cargo port on the Dnieper River. “The port is situated in Belarus. However, we need to dredge some reaches of the river in Ukraine to make path for the port. The negotiations are underway, the specialists are working on it. There is a Belarusian investor ready to build the port but first we need to do a feasibility study. The head of state has given relevant instructions,” the ambassador added.

He emphasized that water transport is in high demand in other European countries. “This is quite a low-cost transport and a promising field,” Igor Sokol summarized.