Prime Minister M. Topolánek's address to an economic forum in Kiev on 17 September 2008
Ukraine is one of the most important countries to our east. Not just in regards to foreign and security policy, but also from an economic perspective. We consider Ukraine to be key from the standpoint of our strategy of expanding the zone of freedom, security and prosperity. We support Ukraine's maximum integration into international cooperation. The first step is the European Union's neighborhood policy. As we see it, this cannot be a replacement for full membership, which we also support.
Ukraine is a country with great economic potential. And I believe that we can use our traditional relations and similar experiences to our mutual benefit. Ukraine is the Czech Republic's 20th most important partner and, after Russia, the biggest from the states of the former CIS. In 2007, trade exchange reached USD 1.9 billion, and at the same time our exports reached USD 1.18 billion and grew by 26 % year-on-year. In comparison, Czech exports in 2000 were only USD 145 million.
The relatively high balance of trade in the Czech Republic's favour is due to the export of products with high added value, such as machinery and transport equipment… For this reason, I would not consider these as negatives. These are not goods you would "consume," so to speak, but they are shipments modernising your industry. In coming years, they will enable increases in GDP and export performance. We went through the same developments in the 1990s. And now Czech companies are doing great in exports, despite a very strong crown.
I am convinced that it is in our interest and power to further intensify economic cooperation. This not only relates to direct deliveries, but also to joint ventures and investments. I am pleased that Czech development cooperation projects such as nuclear power plant modernisation, the requalification and professional preparation of experts and environmental protection projects are contributing to the development of economic relations between the Czech Republic and Ukraine. Today we also signed the Protocol on an Agreement for Investment Protection, which is a further impulse for business.
Today, economic power also determines a state's international position. Our responses to the growing pressures of global competition must be our ability to modernise industry, to bring the newest technologies into practice - to strengthen the offer side as much as possible. In this way it will be able to flexibly react to changing global demands. Only high economic potential and a maximal integration into world trade can give Ukraine the necessary level of independence. Only together can we face threats to our energy security and blackmail, whether from Moscow or from unstable regimes.
Czech companies have traditional experience in Ukraine. Their know-how has markedly improved in the last 15 years. I am convinced that our geographic and cultural proximity, the reputation of Czech technology and our ability to supply quality products at a competitive price make Czech companies ideal partners for the modernisation of the Ukrainian economy. The second meeting of the Joint Commission for Economic, Industrial and Scientific Cooperation took place in Prague in June. The result includes a treaty on the creation of working groups in the energy sector (oil and natural gas industries), which will evaluate cooperation projects for the construction and modernisation of natural gas storage facilities in western Ukraine, and cooperation in building capacity for the transport of natural gas from the Caspian region.
This is undoubtedly a specific contribution not only toward increasing the volume of economic exchange, but also toward increasing energy security. Ukraine is one of our strategic partners in the region and I believe that it will continue to get closer to the EU, and with that, its importance will continue to grow. I also believe that you as businessmen will prove to make maximum use of the political support that exists for the development of economic relations in all areas.
