Finnish-Ukrainian Intergovernmental Commission for Economic Cooperation surveyed new areas for cooperation

The Finnish-Ukrainian Intergovernmental Commission for Economic Cooperation met for the first time in six years on 17–18 September. The spirit of the meeting was constructive. Ukraine has carried out reforms to promote international trade and investment, and they have enabled the Ukrainian economy to grow despite constant challenges. The Deep and Comprehensive Free Trade Agreement (DCFTA) between Ukraine and the EU is starting to bear fruit.

In 2017, President of Ukraine Petro Poroshenko and President of the Republic Sauli Niinistö expressed their wish to reinstate the Finnish-Ukrainian Intergovernmental Commission for Economic Cooperation after a few years’ break. Just before Poroshenko and Niinistö made their statement, the EU had approved visa-free travel for Ukrainians and the Association Agreement and DCFTA between Ukraine and the EU had entered into force.

The agreements have produced results: Ukraine’s exports to the EU have reached the level preceding the illegal annexation of Crimea by Russia and the start of the conflict in Eastern Ukraine. In 2017, Ukrainian exports to Finland grew by about 40% on the previous year, and Finnish exports to Ukraine by about 15%. The growth trend has continued in 2018.

Under-Secretary of State Markku Keinänen, who chairs the Commission on the Finnish side, reminded the Commission of the mutual understanding between the two countries and of Finland’s support for reforms in Ukraine. In many sectors, reform implementation is a condition for cooperation between Ukraine and the EU.

Economic and political reforms, such as legislation establishing a high anti-corruption court in Ukraine, aim to raise the quality of life and modernise the business environment in Ukraine. Progress in the EU-Ukraine relations indicate that Ukraine has met many of the conditions set by the EU. This builds trust and confidence in continued good cooperation. At the same time, all parties are aware that there is still much to do. Finland hopes that Ukrainians will uphold their reform spirit despite the elections in 2019.

Around one hundred Finnish companies are operating Ukraine, 25 of them permanently. The value of Finland’s investments is around EUR 122 million. Finland supports Ukraine in its efforts to increase social and financial resilience in the country and funds development cooperation projects in the fields of education and energy efficiency. The education projects are carried out by Finnish Consulting Group (FCG) and the University of Helsinki together with Ukraine’s Ministry of Education. Special Adviser on Education Jukka Tulivuori has been posted to strengthen the Finnish Embassy in Kiev. The energy efficiency projects are implemented by the Nordic Environment Finance Corporation Fund (Nefco) in collaboration with the State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE).

A general impression in the Commission meeting was that Ukrainians are getting more optimistic about the future. Potential for development was seen in several sectors, including ICT, agriculture and renewable energy. The National Investment Council of Ukraine and Export Ukraine support the cooperation by providing free-of-charge services to foreign enterprises. They even help enterprises with imports and in locating new cooperation partners.

As part of the meeting, the Confederation of Finnish Industries and the Ukrainian League of Industrialists and Entrepreneurs signed a cooperation agreement.

The next meeting of the Finnish-Ukrainian Intergovernmental Commission for Economic Cooperation will take place in Finland in 2020.

Finnish representatives in the meeting. From top left to bottom right: Piia Sarivaara-Heikkinen (Ministry of Economic Affairs and Employment), Kirsi-Maarit Poljachenko (Business Finland), Tuomas Kinnunen (Department for Russia, Eastern Europe and Central Asia), Maria Ågren (Embassy in Kiev), Jukka Tulivuori (Embassy in Kiev), Päivi Peltokoski (Department for Russia, Eastern Europe and Central Asia), Under-Secretary of State Markku Keinänen, Head of Mission Juha Virtanen, Sanna-Maaria Vanamo (Department for Russia, Eastern Europe and Central Asia), Harri Pietarila (Finnish Meteorological Institute).

 

Inquiries: Tuomas Kinnunen, Desk Officer for Ukraine, Unit for Eastern Europe and Central Asia, tel. +358 295 350 054