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Xenophon Paper 2 pdf - ICBSS

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The development of transport links will boost trade in the BSEC region. BSEC countries<br />

account for 30% of Ukrainian exports and 36% of its imports. Ukraine’s largest trading<br />

partners within the BSEC are Russia, accounting for 18.5% of Ukrainian exports and for<br />

33% of its imports, and Turkey, with 5% and 1.5% respectively. 12<br />

Ukraine has also taken active part in the creation of high-tech communication infrastructure<br />

for the region. In this respect, the fibre-optical connection project of ITUR (Italy-Turkey-<br />

Ukraine-Russia) is very important and foresees a port to the Eurasian cable, which<br />

connects Western Europe to Japan and Korea.<br />

An underwater Black Sea fibre-optical communication system Varna – Odessa -<br />

Novorossiysk - Poti has started functioning. The system is integrated in the international<br />

telecommunication system of TEL (Tran European Lines), which connects European<br />

countries to Near/Middle East. Since 2006, Ukraine has been the country coordinator<br />

of the Working Group of the BSEC on Information and Communications Technologies.<br />

New Workings Groups on cultural and educational issues were recently established<br />

within the BSEC.<br />

Ukraine takes part in the BSEC investment activities. As one of the founders of the Black<br />

Sea Trade and Development Bank (BSTDB), Ukraine’s share of the Bank’s capital<br />

amounts to 13.5% of shares ($1 billion). 13 Ukraine transferred to the bank an authorised<br />

capital of near $150 million in different forms. At the same time, the BSTDB granted<br />

credit to Greek companies to build ships on the Ukrainian dockyards in Mykolaiv. Owing<br />

to the Bank, a corn terminal was built in the Odessa port as well as a gas-compressor<br />

station in the Odessa region. 14<br />

At the BSEC Summit in Sochi, in autumn 2006, Ukraine brought the participants’ attention<br />

to the potential of the Project Development Fund (PDF) created by the BSEC. The Fund<br />

is financed so far by voluntary contributions of member states and helps in the preparation<br />

of business projects which are at a pre-feasibility stage seeking partners or funding.<br />

12 Estimations provided by the author. For official data on Ukraine’s foreign trade see IMF, Direction of Trade<br />

Statistics, Washington. Also on Ukraine’s trade with the BSEC countries see Manoli, Panagiota (2005), ‘Limiting<br />

Integration: Transnational Exchanges and Demand in the BSEC Area’, Agora Without Frontiers, vol. 10, no. 4,<br />

Institute of International Economic Relations, Athens, March-May, pp. 268-291.<br />

13 Sokolenko, S.I. (1998), ‘Globalnyje rynki XXI stoletiya: Perspektivy Ukrainy’, [The global markets of XXI century:<br />

Prospects of Ukraine], Logos, p. 568.<br />

14 See ‘OCHES Mozge Suttyevo Posylyty Vplyv Na Processy Zgyttyedijalnosti Krain Regionu’ – vvazgaye<br />

koordynator uchasti krainy v OCHES Andriy Kononenko.) [Interview of Andriy Kononenko. ‘BSEC can strengthen<br />

essentially its influence on processes in the region’], Ukrinform, 23 January 2007, http://www.bsanna-news.ukrinform.<br />

ua/newsitem.php?id=0259&lang=ua - 23k.<br />

X E N O P H O N P A P E R no 2 149

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