(Photo: President of Ukraine’s Official Website)

The Norwegian ambassador to Ukraine, Ole T. Horpestad, believes Norwegian companies with a long-term mindset should look into business opportunities in Ukraine.

The ambassador handed over his credentials to the Ukrainian president, Petro Poroshenko, on the 5^th of October.

– I have previously been stationed in Warsaw, Paris and Moscow. I have always been interested in language and culture, especially in this part of the world. Ukraine is a country with a very dramatic and exciting story, so I am looking forward to becoming even better acquainted with the country, says Horpestad.

A lot has happened in Ukraine over the past two years, both in terms of the conflict in the east and the Maidan revolution.

– Ukraine arouses great interest and sympathy, both in the Western world at large and in me. In other words it is very exciting to get the opportunity to know this country better, and by that also help to improve relations between Norway and Ukraine. Besides that, the Ukrainians are very nice people, and Kyiv is a great city to live in, says Horpestad.

Increased political contact between Norway and Ukraine

Horpestad says that the most important thing for him and his team will be to continue building on the work Norway has done in Ukraine so far.

– Norway has clearly condemned the Russian annexation of Crimea and the destabilization in the Donbas, and we strongly support Ukrainian territorial integrity and sovereignty within its internationally recognized borders. We have increased the political contacts with Ukraine considerably, and the Norwegian Minister of Foreign Affairs has visited the country seven times in the last two and a half years, Horpestad says.

 During Prime Minister Erna Solberg’s visit to Kyiv in 2014, the Norwegian support package of 200 million NOK annually to Ukraine was launched.

– The aim of this aid is to support the reform work in Ukraine, and the trend towards European integration. This is crucial in order to get Ukraine on the right track, both in terms of financial and social growth, says Horpestad.

What does it take for reform efforts to succeed?

The Ukrainian Government is currently spending a considerable amount of resources in preparing new reforms.

– This is very demanding work, and we still have a conflict situation in the east, which takes up substantial financial resources and attention. This makes the reform work extra challenging. Nevertheless, I think Ukrainians are doing a good job, and both the president and the government have achieved a lot in a short time. One example is a legal reform that would make the judiciary independent of political power, says Horpestad.

He believes this is one of the more important reforms, as it is crucial for further development that both the population and businesses have confidence in the judiciary.

– This is an important step towards more trade and investment in the country, and I think it is extremely important that this reform will actually get implemented, he says.

European integration on the agenda

According to polls, a clear majority of the population in Ukraine is set for Western integration. Membership in the EU is also a declared political goal.

– My impression is that especially the young generation in Ukraine is very intent on looking westward. Moreover, it is encouraging to see that more Ukrainians are taking business education. Combined with good English skills, we now see a generation of the business thinking necessary for success in the European market, says Horpestad.

A high percentage of the Ukrainian population is being well educated.

– Ukraine has a low cost level compared to Norway and Western Europe. The country has signed a free trade agreement with the EU, which opens up many new possibilities. Better opportunities for Norwegian investors to take part in Ukrainian hydropower (small hydro) have also emerged recently. This opens new ways for trade between our countries, which could be a step towards Western integration, says Horpestad.

Trade between Norway and Ukraine

Trade between Norway and Ukraine has so far been mostly fish and seafood. 85% of Norwegian exports today is fish. Ukraine is also an important market for IT outsourcing, and is today ranked as number two in IT-services in the world. Several Norwegian companies are using Ukrainian IT services extensively.

– Ukraine has a beneficial location in Europe, which obviously is a good thing when it comes to trade, but they need to succeed with their reforms and strengthen the economy to reach out to the rest of Europe. The economy is fortunately on the rise again this year, and with that perspective and the agreements they have signed with the EU, I think it might be wise for Norwegian industry to look towards Ukraine in a long-term thinking. Then they can benefit from the upturn we hope and believe will come, says Horpestad.

One of the challenges for investors who look to Ukraine are the systemic problems, such as corruption.

– Ukraine is in need of better framework conditions for investments. The country has a lot of hard work ahead to get past this, but the impression is that the will and the intention certainly exist. The Norwegian-Ukrainian Business Forum in Oslo in October is a golden opportunity to become better acquainted with the Ukrainian market for Norwegian companies and vice versa. We of course hope that the conference can create a foundation to build contacts that could lead to increased trade and investment between our two countries, says Horpestad.