“Future economic development of Ukraine in the context of the integration processes”


of the public non-political discussion “Future economic development of Ukraine in the context of the integration processes”

Kiev December 16-17.2013


Discussion panelists - domestic and foreign experts, business leaders from different regions of Ukraine - having debated on the topics of the discussion, came to the following conclusions:

  1. Orientation of the Ukrainian economy to any single point of concent rated integration processes is unable to resolve the crisis, neither for the whole economy nor for separate strategic segments, be it engineering, agriculture, high - tech industries (space, aviation, defense industry) or the development of national infrastructure.

  2. The highly difficult situation currently existing in Ukrainian economy on the background of increasingly polarized global decision - making centers is, first of all, a consequence of the biguities in Ukraine's foreign economic strategy.

  3. Absence of the national economic development strategy and its implementation programs, lack of effective dialogue between the authorities and society, lack of understanding of the dynamics and prospects of economic policies initiated by the government for small/medium business and public and private economic structures, economic tyranny of the oligarchy, interfere with consolidation of Ukraine’s productive power.

A number of proposals presented during the discussion may be summarized as follows::

  • The authorities, leveraging on the expert community, the academia, business leaders of key industries, should form, in optimum time, a scientifically - based strategy of foreign economic policy of Ukraine in near to medium term, as well as for the period of 20 - 30 years.

  • The strategy and its implementation programs should base on the plans for modernization and development of the budget - forming industries and the largest enterprises that create gross national product and ensure development of the priority sectors of the domestic economy in the global structure.

  • This strategy and its implementation programs should be a consolidated decision of all major economic structures of Ukraine and Ukrainian society and should be approved by the legislative body of the country. Economic actors and ordinary citizens need to understand what steps the state is making and their consequences for the socio - economic life of the Ukraine.

  • Significant regional differences in the structure of the economy necessitate a detailed program of regional economic development of Ukraine. Each region should have a clear development strategy.

  • The attempted reforms should be agreed, discussed and approved via negotiations with different centers of economic integration, after analyzing benefits and concessions for all participating parties.

Only framework of actions can guarantee the progressive advance of the Ukrainian economy in the global markets, the basis for public peace and the consolidated, progress - oriented actions of the Ukrainian society.

Accepted by discussi on panelists on December 17, 2013, Kiev




Alexandr GOROKHOV: There is still no official translation of the association agreement with the EU to Ukrainian or Russian because the agreement was written "for Akhmetov" (VIDEO)

The Ministry of Foreign Affairs of Ukraine translated the text of the agreement, but a month before the meeting in Vilnius the European side introduced some changes. Full official translation has yet to be made. The journalist and expert in international affairs Alexandr Gorokhov was the first in Ukraine to read more than 900 pages of the document in the original language. Besides him, only special group from the Ministry of Foreign Affairs read the document. Gorokhov claims that he was the first to blow a fuse regarding the contents of the document. The enterprises of Rinat Akhmetov will be direct beneficiaries from signing the agreement.

Alexandr BULAVIN: the roads, which have chosen us

The two-day public non-political discussion in Kiev, which was dedicated to the tendencies in the Ukrainian economy in connection with the global integration, was the first but rather a successful project of the News Agency Kharkov, which together with the European Institute of Political Culture not only managed to gather at the round table the international gathering of the well-known experts, but also to suggest an unusual look at the going on economical processes.

Vladimir SaldoVladimir SALDO – Rigid binding to standards of any union might be inefficient for Ukraine in the future (VIDEO)

In the course of the public non-political discussion “Future economic development of Ukraine in the context of the integration processes” the people’s deputy and member of parliamentary faction of the Party of Regions Vladimir Saldo said that rigid binding to standards of any union, be it the European or the Customs one, might be inefficient for Ukraine in the future.

Oleg TsarevOleg TSAREV: if Russia does nothing in relation to Ukraine it will get a hostile state (VIDEO)

The work of the non-governmental organizations and funds at the territory of Ukraine is directed at changing the matrix of consciousness of people. Soros Fund allocates huge quantity of funds to Ukraine (more funds is allocated only to Africa). The goals of this work are so systematic.

Yuri ApukhtinYuri APUKHTIN: “We have nothing to do with the European civilization. We are completely different.” (VIDEO)

The Ukrainian economy, especially high-tech, existed within a single state and everything was interlinked. A separate company or even the state of Ukraine as a whole, cannot develop complex technologies – this requires cooperation of a dozen organizations from completely different industry segments.

Oleg ParaskivOleg PARASKIV: “US pressure prevents creation of a common space without borders” (VIDEO)

Without the pressure of our highly esteemed US friends on everything that happens globally, perhaps we could have had a single space, without borders, right up to the Far East. But, unfortunately, such scenario is unprofitable for the global superpower, the States, which advocates a policy of confrontation, separation and domination.

Valeri BondarenkoValeri BONDARENKO: The Belorussian President is not ready to leave the Customs Union (VIDEO)

“We in Belarus, of course, are very attentive to the words of our President, but there are objective conditions for the existence of the Belorussian economy, which can only be provided by the Customs Union,” said Bondarenko.

Valeri BondarenkoValeri BONDARENKO: On economic expansion as the “basic instinct” of the European Union (VIDEO)

"Economic, social, humanitarian expansion is the “basic instinct” of the European Union and the West in general. Is it good or bad? It is neither good nor bad, it is reasonable."

Anton PodlutskyAnton PODLUTSKY: Ukrainian economy shouldn’t loiter around already crowded space (VIDEO)

For the past 20 years little has changed in the economies of Russia, Ukraine and Belarus. It is reasonable to restore and maintain the economic links that remain. We need to get back to these markets while there still is demand for the Ukrainian goods. The European market is saturated even without Ukraine.

Alexey SamoilovAlexei SAMOILOV: “There isn’t a single serious scientific work to justify the model of European integration of Ukraine” (VIDEO)

Integration means mutual fusion or mutual diffusion of objects or entities for organizing a unified whole with a synergy effect. The effect of such fusion is much higher than the sum of the two potentials. In case of European integration, such an effect cannot possibly be achieved.

Alexey SamoilovAlexey SAMOILOV: “Ukraine will become an agricultural appendage and supplier of the labor force for Europe” (VIDEO)

We will not raise the economy, it will die, and we will become the agricultural appendage and the supplier of the rather low qualified labor force for Europe, as, for example, Hungary or Bulgaria. I am not taking into consideration the Baltic States; they are already finishing their life cycle as separate states.

Alexandr BulavinAlexandr BULAVIN: adoration of Europe is built on envy (VIDEO)

Idolization of Europe in Ukraine is based on the subjective perceptions of life to the west of the Ukrainian border rather than on objective knowledge of the subject. The society thinks that everything is running fine across Europe, that everyone is well-paid and lives comfortably. Although we know that this is not so.

Sergey PakhomovSergey PAKHOMOV: if Ukraine prefers the European Union to Russia, we will face economic collapse (VIDEO)

The economy of Ukraine is in a difficult situation, and if the country chooses the way of the European integration it will lead it to economic collapse.

Alexandr BelozerovAlexandr BELOZEROV: the situation with the monetary reserves of the country is absolutely critical (VIDEO)

The volumes of the international monetary reserves of the country decreased abruptly, and, according to the data, as of end of October comprised less than $20 billion, $3 billion of which were the deposits preserved in the foreign currency.

Dmitry KondrashovDmitry KONDRASHOV: Ukraine will have to prove Russia that it needs the former (VIDEO)

Dmitry Kondrashov, analyst and editor-in-chief of “The Baltic World” magazine, is confident that Ukraine will have to prove its worth to Russia in case of accession of the former to the Customs Union since Ukraine’s northern neighbor has no extra money to throw in attempt to support the economy of Ukraine.

Irina BusyginaIrina BUSYGINA: ‘social contract’ approach is inevitable for Ukraine (VIDEO)

Ukraine has fallen into the double-trap of rigid coalitions. The first trap is the split within Ukraine; the second is the relationship between Russia and the EU.

Roman MihaylichRoman MIHAYLICH: 50% of state assets still waiting for investor (VIDEO)

In Ukraine there are about 50-55% of state property currently waiting for investors and efficient owners. Both individuals and legal entities, as well as the public sector, bear the financial costs associated with the registration of property rights. Without addressing this issue, we are unable to get any Western or Eurasian investor

Dmitry KondrashovPoland and the Baltic states carried the main burden prior to reformation in line with the EU requirements – analyst (VIDEO)

It is important to understand that for the Baltic States and Poland entering the EU was paid for from three main sources. The first and most important source is the shock reforms that were conducted in these countries. The whole social system was cut and reduced to zero.

Valeri BondarenkoValeri BONDARENKO: Ukraine isn’t like Poland or the Baltic States. Where can we make money? (VIDEO)

This is the era of calculations and economic projects that are difficult and take a while to complete. Belarus went down the same road, and now the country has 10-15 large enterprises. But these are really able to sustain the whole country. In Belarus shops milk costs 5-8 hryvnia per litre.

Alexandr DudchakAlexandr DUDCHAK: Ukraine should preserve and develop its own production. It is impossible to live long on credits (video)

In the course of public non-political discussion “Future economic development of Ukraine in the context of the integration processes”, which took place in Kiev on December 16-17, the economist, the associate professor of the Kiev Economic University, the Head of the Strategic Culture Fund Alexandr Dudchak stated that instead of getting numerous foreign credits Ukraine should think of keeping still existing in the country high-tech production.

Dmitry KondrashovRussian expert compared the US and the Customs Union economies (VIDEO)

It is important to talk about the market characteristics. The US does not integrate its market so deeply, but it has a huge market due to the spread of the English language. Hence, they can supply smart products and so on. What matters is the qualitative characteristics of the market, a single ownership zone, unified approach to business – all of this should exist.

Dmitry PolonskyDmitry POLONSKY about the Customs Union: Russia’s hydrocarbon feedstock will trickle down but life goes on (VIDEO)

Russia needs to expand markets and is therefore interested in Ukraine’s integration in its economic space.Russia needs integration processes and for this reason is sometimes cruel, sometimes “bending Ukraine over the knee.

Irina BusyginaIrina BUSYGINA: federalization is ‘a must’ for a society with strong political strategy (VIDEO)

For a community with extremely strong political strategy – not professional, not linguistic, but actually political, with different political priorities – federalization is the way. Federalism does not eliminate the problems, it is honest about them and honest about creating the mechanisms to solve some issues.

Andrey NikiforovAndrey NIKIFOROV: Crimea is a testing ground (VIDEO)

Andrey Nikiforov, a political scientist from the Crimea, shared his opinion on the only autonomy in Ukraine – the Crimean Autonomous Republic. Nikiforov called this territory a kind of testing ground for various economic projects, also presenting his view on the global geopolitical events through the prism of a small Crimean peninsula.

Oleg ParaskivOleg PARASKIV: Every resident of the Crimea dreams of the construction of Kerch Bridge (VIDEO)

Today, the Crimea makes significant strides in terms of agricultural development, there is demand for farm products, including in Russia. But there is a problem – the lack of a free state border and a bridge between Russia and the Crimea.

Sergei SIBIRYAKOVSergei Sibiryakov: Ukraine’s Maidan gets protesters via social networks (VIDEO)

"The efforts to attract people via social networks are well-organized and planned, The US Embassy organizes courses telling step by step about how to behave, how to create communities, how to send these invitations – the whole technology of organizing topical groups in social networks,” mentioned the expert.

Dmitry PolonskyDmitry POLONSKY: On three conditions for successful integration of Ukraine into EEC (VIDEO)

For a successful integration of Ukraine into Eurasian Economic Community, three conditions are required: creation of Russian lobby in Ukraine, informational propaganda and economic rapprochement of certain Ukrainian regions and EEC.

Vasiliy StoyakinVasiliy STOYAKIN: the Ukrainian society is in some mythological space

In Ukraine the communication of authorities and the public is not well developed. And, therefore, when it comes to economic issues and, moreover, to economic integration, the voice of reason is lost and mechanisms of propaganda type are switched on.