We Are Working Hard to Develop Cooperation
Ukraine is now our 9th biggest export partner and the 15th biggest source of imports to Poland. No one expected such robust results in the early months of the war. These positive relations will provide long-term benefits and the cooperation will continue in the future with reconstruction projects, says Waldemar Buda, Minister for Economic Development and Technology
What are the key tasks for Poland in supporting Ukraine beyond military aid?
Since the beginning of the war, Poland has been the leading centre of assistance to Ukraine, including the Ukrainian people who have come to Poland and the Ukrainian public administration. Unfortunately, Russia continues its unjustified aggression against Ukraine. This is why our assistance is focused on responding to the current needs of our eastern neighbour, such as energy needs. We have sent 100 rail cars of equipment necessary to repair the damage to Ukraine’s energy sector. We are donating generators and continuing to supply fuel. We are providing humanitarian aid; for example, we are building container towns for internally displaced people in Ukraine. We are in constant communication with the Ukrainian authorities. Support in the international arena and at European Union level is crucial. Further supportive measures are being taken on Poland’s initiative and there are talks about imposing further sanctions on Russia. We are also in favour of EU solutions to confiscate frozen Russian assets. Poland has allocated significant resources to help Ukraine but the needs are so great that we are mobilising all countries to help. At the same time, we are preparing for the post-war reconstruction of Ukraine. The reconstruction of Ukraine after the destruction combined with additional needs to modernise the country and repair the economy may cost in total as much as USD 750 billion. This estimate is from last November while costs are rising all the time.
Which activities are the Ministry of Economic Development and Technology directly involved in?
The Ministry works primarily in the economic field. We develop solutions to maintain trade relations despite the war. The Export Credit Insurance Corporation (KUKE) reopened on 13 June 2022, offering credit insurance for export contracts with Ukrainian contractors. We are working on legislative solutions to enable insurance of investment projects in Ukraine, among other things. In our work, we have not forgotten about Ukrainian entrepreneurs who have been forced to leave their country. Regulations have been put in place to allow all Ukrainian citizens legally residing on the territory of Poland to set up business on the same terms as Poles. The Ministry has opened a special website presenting details on how to start a business, take up employment, and hire Ukrainian citizens. Ukrainians established more than 17,500 new businesses from mid-March 2022 to 31 December 2022. We support all initiatives to strengthen business relations between entrepreneurs from both countries. The Diia.Business office was established in Warsaw in May 2022 as a result of cooperation between my Ministry and the Ukrainian Ministry of Digital Transformation and the Agency for Enterprise Development and Export of Ukraine. It is a Ukrainian assistance centre for Ukrainian entrepreneurs. Small and medium-sized companies from Ukraine can conduct their business from the territory of Poland since the beginning of March. Within the framework of Coworking Ukraine, the Polish Investment and Trade Agency (PAIH) offers free office space together with the necessary infrastructure. The PAIH also supports the programme “Poland. Business Harbour” which is a comprehensive support package for firms in the IT industry to relocate seamlessly on Polish territory. The Ministry of Economic Development and Technology was responsible for legislative solutions simplifying the rules on the acquisition of protective equipment on the territory of Poland and the export and transit of protective equipment to Ukraine.
What are the benefits for the Polish economy and businesses from the current cooperation and Polish-Ukrainian relations?
What is very heartening is the good performance of trade. According to preliminary 2022 data from the Polish Central Statistical Office (GUS), Polish exports to Ukraine increased by 55.1 percent, reaching EUR 9,726 million, while imports from Ukraine to Poland increased by 43.3 percent to EUR 6,085 million. Ukraine is now our 9th biggest export partner and the 15th biggest source of imports to Poland. No one expected such robust results in the early months of the war. These positive relations will provide long-term benefits and the cooperation will continue in the future with reconstruction projects.
What are the prospects in the longer term for rebuilding Ukraine after the war?
I raise the topic of post-war reconstruction and sanctions against Russia and Belarus in every conversation I have with government officials from other countries. We are preparing domestic companies to resume exports and participate in the reconstruction. More than 1,750 companies representing various industries, such as construction, machinery, IT and pharmaceuticals, want to take part in the reconstruction. A catalogue of Polish companies willing to participate in reconstruction projects will soon be published. More than 500 companies have signed up to be included. The Ministry launched a website on 6 May 2022 which presents international public procurement procedures dedicated to Ukraine. The site provides information on public tenders opened by international organisations, international banks, EU member states, members of the European Economic Area, and other countries providing assistance to Ukraine. It is not yet clear how Ukraine’s reconstruction projects will be managed. However, a variety of forms seems likely. The G7 established a multi-agency Donor Coordination Platform in December 2022 to integrate existing mechanisms for ongoing and long-term support to Ukraine, including its reconstruction. We expect that Poland will be included in the work of the Steering Committee of the Platform and believe that our Ukrainian partners will be in favour of this. Work is also underway in the EU to launch its own financial instrument ReBuild Ukraine. We do not yet know how much money the EU will allocate for the reconstruction of Ukraine but all such initiatives should be welcomed.
What should be done to make Poland a centre of support for the reconstruction of Ukraine? Is this realistic?
Poland is playing a huge role in supporting Ukraine. We are now a logistics hub for humanitarian and military aid. We should play the same role in the reconstruction. Our geographical location, Polish-Ukrainian friendship, experience in the Ukrainian market with commercial projects are just some of our advantages. As I have said, the reconstruction of Ukraine will be a massive challenge which needs to be financed from a variety of sources, ranging from international organisations through different governments to the private sector. The frozen reserves of the Russian Central Bank and seized assets of Russian oligarchs must also be used for this purpose.
What is the roadmap and time horizon for Ukraine joining international organisations such as the European Union or the OECD?
Ukraine acquired European Union candidate status in June 2022 and is required to align its legislation with EU law, including economic regulations as well as the rules governing the single European market. At the recent European Union-Ukraine summit held in Kyiv on 3 February 2023, Ukraine pledged to develop a National Programme for Adoption of the Acquis. The European Commission has already recognised Ukraine’s major harmonisation efforts. Poland supports Ukraine’s membership of the EU and the OECD. The Ukrainian government applied for membership of the organisation on 5 July 2022 and Ukraine has been granted prospective membership status. A realistic prospect of membership of both the EU and the OECD should mobilise the Ukrainian government and people to engage in further reform and eliminate undesirable practices. Support for reconstruction includes an exchange of experience and know-how. We pledge our support to Ukraine in this process. Ukraine still has a long way to go and further economic reforms and improvements are needed, but the change has already started and we believe it will continue and be successful.
JPO
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