Ukraine not ready to compete on equal footing on European markets - Fesenko

Head of the Board of the Center of Applied Economic Studies Penta Volodymyr Fesenko has said bout this in an exclusive interview to a Ukrinform correspondent.

“We are not ready to compete on an equal footing on European markets. It is necessary to adapt, our business has to enter those markets, find respective commodity groups, for which there is demand, to adapt to European standards and certain procedures. Although, we are trading in the EU for a long time, but it is always difficult to find new markets, even if certain duties reduce,” Fesenko said.

According to him, the first period following conclusion of the new agreement between Ukraine and the EU really will not be simple: “Some experts say that during the first year of the new Agreement operation, there can be more challenges than victories. We, in particular, have a problem of a negative balance of foreign trade. And in principle, opening of borders in trade between Ukraine and the EU may lead to the increase of imports. There are such risks. Active actions should be carried out by our state structures, business, because nothing occurs automatically.”

But later, the politician believes, Ukraine will win: “The effect from Europeization and economic integration with the EU, although partial, will not immediately be in the medium-term perspective.” The main thing, the expert is convinced, is that a new Agreement is actually a partial form of the economic union, and gives an impetus to serious institutional transformations and reforms: “The Ukrainian economy gradually starts working according to the European rules, and this will enable raising the quality of our products and to gradually civilize our economy and bring it to a new level.”

The expert dwelt also on perspectives of Ukraine's investment attractiveness.

“Another important effect, which has to occur thanks to the Agreement, is the increase of investments, coming of a civilized investor to Ukraine. Not only speculative, which came to us before the economic crisis, and an investor, who wants to invest in development of our industry or the agrarian sector, which may give a serious impetus to development of the economy as a whole,” Fesenko said.

He also added that we should not hope for a quick miracle, but at the same time, European economic integration is a way toward economic modernization. At the same time, the politologist advises not to turn away from cooperation with the Customs Union countries. “Russian, Kazakh and Belarusian markets are also profitable and attractive for us. They should be preserved. But if to prefer only cooperation within the Customs Union frames, this may conserve the current state of the Ukrainian economy,” the expert stressed.

According to him, European integration means also Ukraine's gradual entering the club of European states. “This is democratization of the country's political system and holding systemic legal reforms. This is what we badly need. We know what the situation in our judicial and legal systems is.”

Instead, Fesenko noted, “if we look at the Eurasian space, unfortunately we see mainly authoritarian or semi-authoritarian regimes, much corruption and deformations.”

“Finally, Eurasian countries also will have to hold reforms, although they are not very successful. Therefore, it is better to be guided by those samples of reforms, which have already produced effect and are tested by the time rather than to become prepared for long-term inactivity in the “post-Soviet bullion,” actually not to develop, but to continue existing in the present forms. So, here a choice is not only in favor of tactical future advantages. This choice is strategic, in favor of the state's modernization,” he summed up.