Special Issue

Ukraine celebrates its 8th Anniversary of Independence

August 24, 1999

On 24 August Ukrainian people celebrate the Independence Day of their country. It was eight years ago that the Verkhovna Rada (Parliament) of Ukraine proclaimed Ukraine's state independence. 90,3 per cent of all eligible voters confirmed this choice at the landslide Referendum on 1 December 1991. Of all the states that emerged with the collapse of the former Soviet Union, Ukraine was the only one to bring the issue of independence to a nation-wide discussion. Thus, a new period of state-building began in Ukrainian history.

Ukraine is now moving along the way of consistent reforms in order to ensure stable economic growth and to accelerate transition to market economy.

In spite of current difficulties, the President and the Government of Ukraine are determined to continue the course of reforming the national economy.

Among Ukraine's main achievements in domestic policy during the eight years of its independence one may mention political stability in the society, the guaranteed renewal of the structures of power through a general, open and honest election, the adoption of the Constitution which pronounces priority of democratic values as its fundamental law. The Comprehension of human rights and freedoms as an inalienable component of contemporary public society has consolidated our nation. Political pluralism, freedom of speech, freedom of travel and other democratic ideals have become apart of public life. Ukraine moves ahead with confidence toward further reforms, based on the principles of not conflicts, but public consensus.

Establishing Ukraine's reputation in the world as a democratic European nation is of principal significance. Together with political and economic factors, Ukraine's achievements in humanitarian sphere and its contribution to the world science and culture are getting even greater importance and influencing the successive integration of the country into European and world processes.

Ukraine’s success and experience in solving the problems of national minorities and inter-ethnic relations are essential. During the years of independence Ukraine managed to prevent any escalations on these sensitive issues while resolving the problems in connection with return and resettlement of the formerly deported peoples. Ukraine's positive experience in guaranteeing the national minorities' rights has been widely acknowledged in the world, namely by the OSCE and the Council of Europe.

At present stage the social-economic situation in Ukraine remains complicated, but several positive tendencies are readily apparent. Due to the measures taken by the President of Ukraine, the Cabinet of Ministers and the National Bank we managed to minimise losses caused by the last year's financial crisis, to restore macroeconomic stability and improve the overall economic situation. During the first half of 1999 the industrial production grew by 0.2 per cent, and in June, in comparison with last June, by 4,7 per cent.

This year's anti-inflation measures of the Cabinet of Ministers of Ukraine and the National Bank have helped overcome a negative tendency the price growth for industrial production goods that exceeded the growth of the consumer prices at the end of 1998.

Some positive tendencies also include gradual growth of monthly volumes of production export (goods and services), in comparison with the corresponding period of the last year, export volumes of agricultural production (particularly fats, oil, sugar, and tobacco) increased by 14.4 per cent. Also grew the exports of aluminium, wood and wooden articles etc.

The 8-year experience confirms that the foreign policy course chosen by Ukraine is a reliable means for protection and promotion of the country's national interests in the world. In this context the economic aspect of foreign policy will remain a major priority in everyday activities of the Ministry of Foreign Affairs and diplomatic missions abroad. Our foreign policy has become one of the instruments of solving the main task, which is to ensure economic growth of the country and well-being of its citizens.

An important part in Ukraine's foreign strategies has to be played by the use of gains achieved during eight years of independence in order to enhance the economic situation in the country for the benefit of each citizen, for materializing the achievements on the international arena and adding to the cooperation with Ukraine's partners a more practical content. Strengthening of the economic component of both domestic and foreign policies of the country meets the urgent requirements of the time.

Recently Ukraine has managed to reach tangible progress in its relations with Western countries. In near future, the economic face of Europe will be determined by the enlarged and the reformed European Union (EU), and in the field of strengthening the security, by joint efforts of European organizations in elaborating and implementing a new system of European security for the 21st century. Ukraine consistently pursues its strategic course for integration into the European Union as the priority in the foreign policy. A certain progress has been achieved in implementing the provisions of the Agreement on Partnership and Cooperation between Ukraine and the EU and Ukraine is confidently advancing on the way of strengthening the relations with the EU.

The relations between Ukraine and the EU have reached a qualitatively new level. Officially declared is now Ukraine's will to get associated membership (initially) in the European Union and then, a full-fledged one (on reaching the so-called Copenhagen criteria) of our country. Considerable progress has been made in mutual understanding of the sides and in their approaches to the solution of major bilateral issues.

The Third Ukraine - EU Summit that took place on 23 July 1999 in Kyiv has become a significant step in further intensification of relations between Ukraine and the European Union. During the Summit some progress was reached in acknowledging Ukraine's course for integration into the EU, and the support for Ukraine's integration into European and Euroatlantic structures was declared more broadly. At this highest-level meeting the Eurounion once more confirmed its intention to promote Ukraine's accession to the WTO, and it was agreed to start the preparations for establishing a free-trade area between Ukraine and the EU.

The 6th informal meeting of the Presidents of Central European countries (Lviv, 14 to 15 May 1999), in which the Presidents of Austria, Bulgaria, the Czech Republic, Germany, Hungary, Poland, Romania, Slovenia and Ukraine took part, has become a perceptible attainment of Ukrainian diplomacy on the Central European direction. A fruitful exchange of ideas took place on pressing issues of cooperation between the countries of the region in the context of creating a new geopolitical situation in Europe through the prism of the human dimension of the European and regional integration. The participants of the meeting expressed their support for the reformatory course of Ukrainian leadership, the country's striving for integration into European and Euroatlantic structures. Heads of the 9 states adopted the Joint Declaration on the settlement of the Kosovo Crisis.

On the whole, the Lviv Summit has become a tangible event in the foreign policy of Ukraine and convincingly testified the growth of Ukraine's reputation both in the European and regional contexts.

Continuing to apply efforts in the development of regional cooperation, the President of Ukraine Leonid Kuchma put forward the initiative concerning holding an International Conference: Baltic - Black Sea Cooperation: Toward United Europe of the 21st Century Free of Dividing Lines". Heads of State and Government from the countries of the Baltic and Black Sea regions will meet in Yalta on 10 to 11 September to discuss the prospects and directions for the development of international cooperation in the political, economic and humanitarian spheres. The Conference is to become Ukraine's another contribution to strengthening stability and expanding integration processes on the European continent. It will confirm Ukraine’s growing role as a regional leader and a strategic link between the North and South of Europe.

Our country's active participation in the summit of the Heads of State and Government of the member-countries of the Stability Pact for South - Eastern Europe, held in Sarajevo on 30 July 1999 in which President Leonid Kuchma took part, as well as the decision to send Ukrainian military contingent to the peace-keeping forces in Kosovo testified to deepening of cooperation with the EU in the framework of common foreign and security policies of the European Union.

Practically since the first days of the renewal of Ukraine's independence, taking into account its specific geopolitical situation, the country stood for the dialogue and cooperation with such important actors of European security structure as the NATO and the WEU. A new practical direction of cooperation and partnership with NATO has been initiated in the field of peacekeeping activity under the UN aegis: through participation of Ukraine's Armed Forces in IFOR/SFOR in Bosnia and Herzegovina.

The eighth year of Ukraine's independence was marked by tangible progress in the development of bilateral mutually-profitable cooperation with the CIS countries of the Commonwealth of Independent States.

Ukraine made a number of undoubted advances in developing its relations with the Russian Federation. Progress in Ukrainian - Russian relations during the 8th year of our country's independence has shown once more that there is no alternative to friendly, equal and mutually beneficial relations with Russia. Attitude towards Russia, the neighbouring country with which Ukraine is united by historical, cultural and economic ties, as to a strategic partner remains a priority direction of Ukrainian foreign policy. Ukraine's strenuous efforts aimed at adding practical content to this policy line resulted in significant positive changes in bilateral relations. The most important recent achievement is the completion of establishing the legal base of Ukrainian - Russian relations.

This year the Treaty on Friendship, Cooperation and Partnership between Ukraine and Russia came into force. The Treaty approval has become the logical result of a long period in the development of the two sovereign states and, at the same time, the beginning of a qualitatively new stage in their interrelations. The "Big Great" Treaty lays reliable legal basis of Ukrainian - Russian relations, creates new possibilities for the comprehensive development of mutually beneficial economic cooperation. One of the most important aspects of the Treaty is the legal recognition by the parties of the territorial integrity of each other and inviolability of their existing borders. Strengthening of the good-neighbourly relations between Ukraine and the RF is an important factor of increasing stability and security on the European continent. The Treaty solidified the aspiration of the parties to make every effort to develop a new architecture of the European security. In 1999 the basic agreements on the Russian Black Sea Fleet also came into force, which determine the status of its stay in the territory of Ukraine. Besides, the process of ratification of the Treaty on long-term Ukrainian - Russian economic cooperation up to 2007 has been completed. The Treaty determines the trends and mechanisms of economic cooperation in the context of strategic partnership relations. Significant achievements in bilateral relations also include the process of delimitation of Ukrainian-Russian border.

A special place among the top priorities of Ukraine's foreign policy belongs to the development and deepening of relations of strategic partnership with the United States of America. An active political dialogue at the high level between Ukraine and the USA testifies that strategic partnership between the two countries acquires more and more concrete dimension and remains an important component of international security. Regular political dialogue, military, technical and economic cooperation are intensively developing between Ukraine and the USA. In 1998 trade turnover between the two countries was USD 1.046 million, that is 11.4% more than in 1997 (USD 939 million). The total volume of American direct investments into Ukraine's economy amounts to USD 509.6 million, that is 24.7% of the total volume. In January 1999 there were 987 enterprises with participation of the American capital in Ukraine.

The implementation of the Kharkiv Initiative is an important aspect of bilateral cooperation. The Second Ukrainian-American Business and Investment Conference in the field of power engineering with the participation of an official delegation of the USA and a wide circle of American businessmen has become the first step within the framework of implementation of this project.

Last year was also marked by tangible progress in the development of neighbourly partnership with the countries of Central and Eastern Europe and of the Balkan region.

In the European direction of foreign policy the relations of strategic partnership with Poland acquired more concrete content, which was characterized, first of all, by high dynamics of political dialogue at the highest level. To this testified the results of the official visit of the President Leonid Kuchma to the Republic of Poland on June 23-25. The visit which gave an impetus to the development of bilateral cooperation between both countries as well as their interaction at the regional level.

An important step in development of foreign trade and economic relations has become the signing on 23 October 1998 of the Treaty between Ukraine and the Republic of Moldova on Economic Cooperation for 1998-2007, the Programme of Long-Term Economic Cooperation being an integral part thereof. The process of solving the issue of ownership of railroad facilities, which lasted are six years, has been completed. The work is performed over the Treaty on the State Border between Ukraine and the Republic of Moldova, which is to be signed in the course of the upcoming official visit of Moldovan President of the Petru Luchinsky to Ukraine.

Ukraine continues to take an active part in the settlement of the Trans-Dniestrian conflict. On the initiative of the President of Ukraine, the meeting of the Presidents of Ukraine, the Republic of Moldova and Head of the Government of the Russian Federation was held on 16 July 1999 in Kyiv with the participation of the Representative of the Chairman in Office of the OSCE and the leader of the Transdniestria. The settlement of the Trans-Dniestrian problem was discussed. The President of Ukraine proposed the concept of a stage-by-stage settlement of the relations between the Republic of Moldova and Transdniestria, which was appreciated by all the participants of the negotiations.

The signing of the Treaty o Economic Cooperation for 1999-2008 which took place during the 11-12 December 1998 visit of President Kuchma to the Republic of Belarus has become a milestone in bilateral relations. The bilateral Agreement Cooperation in Ensuring the Rights of Persons who Belong to National Minorities signed in Kyiv on 23 July 1999 will contribute to meeting the cultural needs and provide for protection of rights of almost 300.000 members of the Ukrainian community in Belarus.

The Ukrainian-Romanian relations developed in the context of realisation of the basic bilateral political Treaty and further deepening of mutually beneficial cooperation. In particular, it concerns the continuation of the negotiating process as to conclusion of the Treaty on the Regime of State Border between Ukraine and Romania and the Agreement on Delimitation of Continental Shelf and Exclusive Economic Zones of both countries in the Black Sea (5 rounds of negotiations were held), the establishment of constructive dialogue in the sphere of securing the rights of national minorities (the relevant intergovernmental Commission was inaugurated, the process was initiated on creation of multilingual institute at the Chernivtsi State University with Ukrainian, Rumanian, German and Hebrew languages) and the development of regional cooperation.

Deepening of the comprehensive cooperation with the countries of the Caucasian region is an indication of the positive changes in Ukrainian foreign policy. An essential impetus was given to Ukraine's cooperation with Georgia and Azerbaijan in realization of the European and regional transport projects, direction of goods and traffic flows from the countries of Asia, Caucasus to Europe through Ukraine, Caspian oil transportation by the Ukrainian route: Baku - Supsa - Odesa - Brody - countries of Europe. The political dialogue at the top level to a great extent contributed to this fact. The visit of the President Leonid Kuchma to Georgia in April 1999, his participation, together with the Presidents of Georgia and Azerbaijan, in the inauguration of Supsa oil terminal and railroad ferry Poti – Illichivsk - Varna has become convincing evidence that Ukraine considers its participation in joint transportation projects as an important component of its regional policy aimed at diversifying economic ties. The official visits of the Minister for Foreign Affairs of Ukraine to Georgia and Azerbaijan in June-July 1999 contributed to these goals.

Ukraine's cooperation with Georgia, Azerbaijan and Moldova within the framework of the consultative forum of GUAM was marked by further development, and after the meeting of the Presidents of these countries last April in Washington D.C., Uzbekistan also joined this forum. The enlargement of the GUUAM testifies to the economic efficiency and political attractiveness of this form of cooperation.

Actions of the Ukrainian diplomacy assisting in the settlement of Georgian - Abkhazian and Karabakh conflicts contributed to Ukraine's image as a skilful mediator in the Caucasian region, its role as an essential factor of regional security and stability.

Ukraine continued to dynamically develop relations with the countries of the Balkan Region. In the context of the Kosovo crisis settlement Ukraine proposed a number of peacekeeping initiatives which were highly appreciated both by the countries of the region and international community. The country rendered humanitarian assistance to the refugees from Kosovo in Albania and Macedonia.

The decision to send the peace-keeping contingent to this region as part of the international KFOR is the logical continuation of the policy concerning the participation in the process of settlement of the Yugoslav crisis.

The issues of multilateral cooperation are being elaborated in respect of reconstruction of economic infrastructure of the region and Ukraine's active participation in realization of the provisions of Stability Pact for South-Eastern Europe.

Ukraine also remains an active participant of the international community's efforts on the implementation of Dayton Agreements. Peace-keeping activities of the Ukrainian contingent which was included into the group of multinational stabilization force got a high appreciation by the official Sarajevo.

Great attention was given MFA of Ukraine to the development of relations with the countries of Western Europe. A special accent was made on foreign trade and economic aspect.

Ukrainian - German contacts at all levels during 1998 - 1999 were characterized by the rich content and considerable extent of mutual confidence. During German presidency in the EU, the WEU and G-7 in the second half of 1998, new possibilities for the deepening of Ukrainian - German cooperation have been created especially taking into account the dynamism of the European integration processes.

Deepening of bilateral Ukrainian - French cooperation led to ensuring resolute support by France of our country in relations with the world and European financial and banking institutions. Obtaining by Ukraine of the next tranche of EFF loan from IMF became a proof of this. Further assistance in promoting Ukrainian - Russian project to create a European military transport aircraft on the basis of ANTONOV AN-70 and cooperation of Antonov Design Bureau with French companies Aerospatial and Reims Aviation (in joint production of ANTONOV AN-140) are just a few successful examples of trade and economic cooperation.

Acquiring in February 1999, together with the USA, France and Great Britain, of the status of observer in influential regional organization - the Baltic Sea States Council (BSSC) is Ukraine's important achievement in the North-European direction. Cooperation of Ukraine with BSSC includes joint projects in transportation, energy, environmental protection and also in the field of "soft security" (combating organized crime, illegal migration, illicit traffic of drugs).

The eighth year of independence has been marked by intensified bilateral cooperation with the countries of Latin America and the Caribbean basin in political, economic and humanitarian fields.

The visit of the Minister for Foreign Affairs of Ukraine (April-May 1999) to five leading countries of the Latin America - Argentina, Brazil, Chile, Peru and Venezuela may be noted as the central event in developing cooperation with the countries of this region. This visit gave a new impetus to bilateral cooperation, contributed to political consolidation of positive changes which took place in bilateral relations of Ukraine with Latin American countries, and resulted in specific agreements and economic contracts concluded by accompanying businessmen.

Maintaining good relations with Ukraine's traditional partners in Africa and Asia is another priority. 19 Ukrainian embassies have been opened in these regions and successfully operate.

China is one of the biggest trade partners of Ukraine; Ukrainian export to China makes up 6 to 8% of country's total exports. Trade with China is stable and, therefore, beneficial for both sides.

The Republic of Korea became one of the biggest investors to Ukraine's economy. In spite of the fact that certain financial and organizational difficulties were experienced by the AUTOZAZ - DAEWOO joint venture, the projects involving Ukrainian and Korean automobile industries allowed to renovate production capacities of the plant, to increase the assortment and improve the production quality.

During the 8 years, Japan has become one of the donors of credits, humanitarian and technical assistance to Ukraine. USD 200-million credit of Japanese Eximbank has been provided to Ukraine, and the new credit, amounting to USD 85 million, is expected. Japan's assistance in international financial organizations in decision making concerning credits of the IMF and the World Bank to Ukraine is unchanged.

Diplomatic activities in Southern Asia have appreciably rapidified. Ukraine plays a considerable part in the issues of non-proliferation of nuclear weapons, which have been accentuated to a great extent after nuclear tests by India and Pakistan. Using its authority as a state that, for the first time in the history of mankind, voluntarily renounced its arsenal of nuclear weapons, Ukraine made a significant contribution into global nuclear disarmament. The International Task Force on South Asia, established after nuclear testing in Southern Asia, held a meeting in Kyiv -last June which has become the next step towards reducing nuclear confrontation.

Ukraine faces many problems in all spheres of life. However, the democratic choice of the country remains unchanged. On the way of reforming and building a democratic European country, Ukraine will continue moving in this direction, solving all issues in a civilized manner, adhering to all its obligations and in full respect of the international law. Celebrating the eighth year of its independence, Ukraine looks forward with confidence, and its future will be inseparably connected with the future of the European family of nations.