Richard Spring MP
Member of Parliament for West Suffolk

On 15th May Ukrainian President Viktor Yushchenko will be in London. Last week I secured, as Chairman of the British Ukrainian Society, a Westminster Hall debate on Ukraine. Relations between our two countries have never been better. The geopolitical importance of Ukraine is fully recognised here in the UK.

Here is my speech:

Mr. Richard Spring (West Suffolk) (Con): May I say what a pleasure it is to see you chairing our proceedings, Mrs. Anderson? I am most grateful to the Minister for being here to respond. I shall examine the bilateral relationship between the UK and Ukraine before considering developments in Ukraine itself. Some 100,000 Ukrainians live here, and a number of organisations exist to link our two countries. I should like to highlight one in particular, the Ukrainian-British City Club, which provides a lively forum for the increasing number of Ukrainians working in the City of London. There are also student groups at the universities of Oxford and Cambridge and the London School of Economics.

Last year, the British Ukrainian Society was established to act as a bridge between our two countries and as an umbrella for the many bilateral groups here and in Ukraine. It encompasses contact at political and economic, as well as social, cultural and educational levels, and it already enjoys a considerable range of activities. I should declare an interest as the chairman of the society. I am also delighted that a course in Ukrainian language and culture has been established at the department of Slavonic studies at Cambridge.

Many links bind Ukraine and the United Kingdom. Whether in trade, defence, development and business or in our work through the European Union and other international bodies, the ties between the two nations are getting stronger. In recent months, London has hosted a significant number of Ukrainian events. Last month the Foreign Minister, Mr. Ogryzko, was in town. He had successful meetings with the Foreign Secretary and the shadow Foreign Secretary. To coincide with his visit, an early-day motion was tabled welcoming the important progress made by Ukraine in its democratic development and hoping that the relationship between Ukraine, the UK, NATO and the EU can be strengthened even further. It encapsulates the views of MPs across the party political divide.

In September, Lady Thatcher held meetings with Yuliya Tymoshenko. More recently, President Yushchenko met my right hon. Friend the Leader of the Opposition at the World Economic Forum in Davos. It was a very successful meeting. Next month, President Yushchenko will visit Britain. One aspect of his visit will be his desire, which is felt deeply and widely in Ukraine, to publicise the famine that killed millions of Ukrainians in the 1930s: the Holodomor, which was deliberately caused by Stalin. There is a remarkable archive on the Holodomor, and an exhibition about it is being planned with the help of the embassy and the British Ukrainian Society. On Saturday, a concert is being held in London to commemorate the 75th anniversary of the famine.

I pay tribute to the hon. Member for Selby (Mr. Grogan), who has ably and imaginatively chaired the all-party group on Ukraine. He has done an outstanding job of bringing Ukraine alive for Members of Parliament, and I pay unreserved tribute to him for it. I am delighted that an Inter-Parliamentary Union visit to Kiev will take place in early June to build links between parliamentarians. I also welcome the formation of a new group in the Rada to forge contact and friendship between our two Parliaments.

The relationship between our two countries has never been better. Ukraine vividly caught the UK’s attention during the Orange revolution, when Ukrainians bravely poured on to the streets to fight for democracy. Ever since those remarkable events, Britain has supported Ukraine in its reform process. It is fair to say that no country in western Europe is keener to promote the success of Ukraine than ours. Ukraine’s geopolitical situation is fully recognised. Britain supported Ukraine’s accession to the World Trade Organisation and fully supports its aspirations to EU membership.

I am a governor of the Westminster Foundation for Democracy, which was established in 1992 to assist in building and strengthening democratic institutions overseas, particularly after the end of the cold war. We are sponsored by the Foreign and Commonwealth Office and work with political parties, Parliaments and non-governmental organisations to foster democracy through training, experience sharing and mentoring in countries around the world. Since its establishment, the WFD has worked in Ukraine to support civil society organisations, political parties through direct UK political party contact, independent media and free and fair elections.

Despite the hope and optimism that the Orange revolution brought to Ukraine, democracy did not immediately consolidate as many first hoped. I believe that Europe did not seize quickly enough the opportunities to build on the outcome of the Orange revolution so as to entrench it, and we did not sufficiently understand its significance. Ukraine has faced teething problems, learned valuable lessons and managed to overcome many challenges thrown in its way. Through sheer determination, it has transformed itself into a new, functioning democracy. It now boasts a strong record of democratic elections, respect for human rights and free media. Of course there are sharply defined differences of view in the internal politics of Ukraine. The constitutional balance between the roles of the President and the Prime Minister is now under review.

The importance of Ukraine’s development goes way beyond its own national interests. Ukraine’s success provides a positive political and economic incentive to its neighbours. It could be a shining example and model for others in the region. If Ukraine succeeds, it could encourage neighbouring countries such as Belarus and Moldova to choose a similar path to success. It is therefore critical that the democratic underpinnings in place in Ukraine are firmly consolidated. Last week, I received some excellent news about an event that could go some way towards making that happen.

The Foreign Office plans to give the Westminster Foundation for Democracy a substantial amount of matched funding towards a parliamentary strengthening programme in Ukraine—£600,000 in total. It is a clear recognition of Ukraine’s importance that it has been singled out for the programme, and it is a hugely welcome development. As Ukraine is a new democracy, its Parliament has a limited number of people available who are experienced and knowledgeable in parliamentary practice. The pace of development in that field has been inhibited by the lack of programmes to institutionalise the experience and knowledge of Ukrainian MPs and parliamentary staff and transfer relevant knowledge and experience from more developed Parliaments. The WFD has taken the lead to form a consortium of leading UK experts in parliamentary strengthening to address more effectively the issues faced by Parliaments such as Ukraine’s.

Despite the political problems, the country has been enjoying strong economic growth, and the signs of prosperity are apparent. I recently attended a Ukrainian investment seminar here in London. It was evident that despite growing inflation in Ukraine, its economy as a whole continues to go from strength to strength. From January to March this year, Ukraine’s gross domestic product grew by 6 per cent. annualised.

The drive for reform is led in many respects by the Ukrainian business community. Ferrexpo, the UK holding company that owns Ukraine’s largest iron ore exporter, began trading last year on the London stock exchange. Many other companies have been or will be listed here in London. Despite high inflation, the Ukrainian economy demonstrated robust economic growth in 2007, higher than that of most other countries in the region and central and south-eastern Europe—an impressive performance, despite huge increases in the price of imported natural gas and high world crude oil prices.

Investment opportunities continue to look good for exporters and investors. Britain is the fourth largest investor in Ukraine, and there are now more than 85 companies in Ukraine with British connections, representing a cross-section of sectors. Property and real estate, trade, finance, transport and communications and machine building currently attract most of the British investment.

Ukraine is an attractive investment destination for a number of important reasons. Ukraine has a highly educated work force with almost 60 per cent. university enrolment, a large domestic market with increasing purchasing power, an improving business climate, relatively low wages and excellent agricultural, industrial and high-tech potential, in addition to the prolonged period of economic growth that the country has enjoyed. Because all of us as parliamentarians are so acutely aware of it, it is worth pointing out that at a time of pressure on world agricultural production, Ukraine, with its huge agricultural potential, is in an increasingly important position to take advantage of it. It is not for nothing regarded as one of the world’s bread baskets. At a time of world food shortages and ever higher prices, Ukraine has lifted grain export restrictions, which is most welcome.

After 14 years of negotiations, Ukraine has been accepted as a member of the World Trade Organisation. Hailed, by President Yushchenko, as a truly historic moment and a decisive milestone in the country’s development, accession has been a joint accomplishment of the past four Governments, which I greatly welcome. Analysts predict that membership of the WTO will lead to an even greater acceleration of economic growth, resulting from an increase in exports and investment as European businesses are given greater access to the Ukrainian market.

As a result of WTO membership, Ukraine has already started official negotiations with the European Union on creating a free trade zone, which should include not only a free trade area, but energy sphere co-operation and strengthened reform efforts and civil society in the Ukraine. President Yushchenko forecasts that the new enhanced agreement will be signed in September. We know that, despite the very considerable burden imposed by the European Commission through the Copenhagen accession criteria, the road to EU membership does encourage the political, judicial and economic reform process.

The EU appears to be suffering from something approaching enlargement fatigue, and the signals to Ukraine have been mixed at best. The Minister will know that enlargement commends itself to all hon. Members in the House, in contrast to attitudes prevailing in some European countries. I hope, therefore, that he will take this opportunity to reiterate our clear support for Ukraine’s EU membership objectives and our intention to work constructively to speed up the process, in the interests of Ukraine and the whole continent of Europe. If flexibility is required, rather than a one-size-fits-all approach, it should be supported.

Ukraine’s application to join NATO is another recent development. Despite no specific date for the membership action plan, NATO’s declaration that Ukraine would eventually gain membership has been welcomed. It is the only partner country to support actively all NATO-led operations and missions, as well as practically every international peacekeeping mission under the auspices of the United Nations and the Organisation for Security and Co-operation in Europe. The aim of NATO enlargement is a broader and more secure Europe—a goal to which Ukraine would certainly contribute.

All in all, in its major contribution to the peace and stability in the Euro-Atlantic area and beyond, Ukraine has proved to be a very valuable NATO partner. However, NATO membership would require broad support in Ukraine. The close historic ties between Russia and Ukraine, and the former’s very specific view of the latter, is a source of tension between the two countries. However, after the past delivery and payment problems with energy supplies, it is good that Ukraine has paid off its gas import debts to Russia, which I hope will result in a generally more comfortable relationship between them.

Undoubtedly, Ukraine has some tough choices ahead, but with its increasing economic prosperity, the chance to showcase itself to the world as host of the 2012 European football championships, and the continuing consolidation of democracy, I am optimistic that Ukraine faces a very hopeful future.

This week the urbane Foreign Minister of Ukraine, Mr Volodymyr Ogryzko was in town. He had successful meetings with David Miliband and William Hague. Our bilateral relationship is excellent. 

The country has been enjoying strong economic growth, and the signs of prosperity in Kiev are apparent. However there is still conflict with Russia over gas supplies, and a difficult relationship between President Yushchenko and the Prime Minister Yulia Tymoshenko. 

In London it has been quite a Ukrainian week, with a very well attended Ukrainian Investment summit, organised by Adam Smith conferences. Inflation may be growing there, but the investment opportunities continue to look good. 

Ukraine wants to join both the EU and NATO, even if it’s a long term aspiration. Russia strongly objects to the latter, and curiously Germany has its reservations too. The process will be taken on shortly at a NATO conference in Bucharest. Britain supports Ukraine on both accounts. 

President Yushchenko is keen to visit Britain, as we are to receive him. Hopefully this will happen in the next few months. One aspect of his visit will be his desire, felt deeply in Ukraine, to publicise the famine which killed millions of Ukrainians in the 1930s. It is called the Holodomor and was deliberately caused by Stalin. There is a remarkable archive on this, and an exhibition about the Holodomor is planned. 

This week in Parliament the following Early Day Motion was put down, and a copy given to The Foreign Minister. It encapsulates the view of MPs right across the political divide.

Ukraine

‘That this house welcomes important progress made by Ukraine in it’s democratic development with the conduct of another election in September 2007 which was judged by the ODCE led international election observation mission to be conducted “in line with international commitments and standards”; congratulates Yulia Tymoshenko on her election as Prime Minister; further welcomes the recent successful outcome of negotiations concerning Ukraine’s membership of the World Trade Organisation which now provides the basis for talks on an EU-Ukraine free trade agreement; urges the speedy negotiation of a new enhanced agreement between Ukraine and the European Union based on political association and economic integration; supports Ukraine’s aspirations to become a member of the European Union and urges the Rada to continue with a programme of political, economic, social and judicial reform; recognises Ukraine’s contribution towards strengthening security throughout the Euro Atlantic area and it’s active cooperation with NATO and hopes this relationship can be strengthened and elevated following the Bucharest summit in April 2008.’   

Both Russia and Ukraine have had elections in the past few months. Whilst Mr Medvedev won the Presidency decisively, Mrs Tymoshenko squeaked in, and her position as Prime Minister is fragile, and dependent on a tiny parliamentary majority. It is a difficult time there politically.

Ukraine wants to join the EU, but at the time of the Orange Revolution was not given a clear signal. Recently it signed up to the WTO, and a comprehensive free trade area is in prospect. Support for EU entry, which is not formally on offer, is universal in the political elite, if not in the general population. Meanwhile, Ukraine’s leadership wants to join NATO, which infuriates the Russians, who have historically regarded Ukraine as their backyard.

Gazprom, Russia’s gas monopoly has cut supplies to Ukraine by at least 25% allegedly because of outstanding debts, which Ukraine rejects. Most of Europe’s gas comes through Ukraine from Russia and countries like Turkmenistan and will be unaffected, we are assured.

Ukraine is a vast country of immense agricultural wealth, a veritable bread basket at a time of soaring prices. Its political and economic success could beneficially impact its less successful neighbours, like Belarus and Moldova.

Curiously enough Ukraine looks to Britain in many respects: there are perhaps 100,000 Ukrainians living here.

The British Ukrainian Society, of which I am chairman, is trying to build links at every level. Ukraine is a European country whose democratic underpinnings and economic success are in our interest too. The Foreign Office recognises this, as so the Opposition: David Cameron had a particularly good meeting with President Yushchenko at Davos.

However there is high political drama being played out currently in the halls of power in Kyiv. We hope this can all be amicably resolved, because the stakes are so high.  

The enormous country of Ukraine caught the world’s attention during the Orange Revolution. Political stability has eluded the country since then, but economic growth has been robust. Ukraine wants to be part of the European family of nations. Thousands of young Ukrainians study here and many others work in the City of London. If Ukraine succeeds then neighbouring countries like Belarus and Moldova may choose a similar path to success. We must help this country; its geopolitical significance is immense.

We launched the British Ukrainian Society (I am Chairman) in Kyiv last week, with the Foreign Minister and other dignitaries present. We ant to build the links between our two countries at every level. Here is my speech:

May I welcome you, on behalf of the directors of the British Ukrainian society, to the launch this evening. I am Richard Spring, Chairman of the new Society. May I thank all of you for coming, and on behalf of everybody present thank those who have helped organise this evening, notably Azra Zakir, Vladimir Granovski and his staff.

On independence Ukraine inherited a well educated workforce and a high technology base. It is blessed with rich soil which has produced large grain surpluses. It has coal reserves and heavy industry which is increasingly competitive. And on its march towards fully democratic institutions, the orange revolution caught the imagination of the world.

No country in Western Europe is more keen to promote the success of Ukraine than our own. Its geopolitical situation is fully recognised. The importance of Ukraine has been spoken about by our then Foreign Secretary, by our until recently Minister for Europe, who made a very successful and personally much enjoyed visit to Kiev, and Ukraine was specifically mentioned by David Cameron, the Leader of the Opposition, in a keynote speech about Europe which he made in Brussels.

So this is why the British Ukrainian Society has been formed. We have a clear set of objectives.

The Society will seek to strengthen ties between the United Kingdom and Ukraine. It will promote partnership between the Ukrainian community based in Britain (including British citizens of Ukrainian origin) and the British public.

Although focused on its membership both in Ukraine and the United Kingdom, it aims to increase the numbers of those people who understand the importance of promoting good British-Ukrainian relations.

By encouraging a wide range of ties between the United Kingdom and Ukraine, it expects to become an important resource for improved mutual understanding. The Society will, therefore, emphasise direct and personal links between the people and organisations of the two countries through:

The encouragement, organisation and sponsorship of a range of social, economic, trade, cultural, political and media programmes and exchanges:

The preparation and dissemination of education and information material
A strengthening of the bonds between resident, naturalised and British-born
Ukrainians on the one hand and the wider community on the other, enhancing the profile of the Ukrainian community and encouraging it to engage fully in British public life.

There are tens of thousands of Ukrainians living in Britain, from the post war generation to younger Ukrainians, working and studying here, all of whom greatly enriching our national life. We have established a board to reflect a range of experienced individuals committed to strengthening bilateral links at every level, in both countries.

We all believe that it is important to continue to embrace Ukraine into the European family of nations. Many of the States of Central and Eastern Europe were offered the prospect of membership of the EU & NATO as an ultimate reward for their pursuit of democratic and market reforms, but Ukraine received no such serious offer after it declared independence. This made the country’s transition harder. Today the EU considers Ukraine to be a priority partner country. It wants a fuller free trade deal with Ukraine after WTO entry. All of this is a spur to continuing market reforms as the relationship embraces economic, energy, policy and cultural co-operation. Ukraine’s role as an important transit country for Europe’s energy supplies cannot be overstated.  A successful Ukraine can be a role model to countries with particular difficulties like Belarus and Moldova.

This is a difficult time for the political process in Ukraine. But this Society is here for the long haul.  Friends are here in good times and bad.  We wait to see the outcome of elections most probably in September.  As I heard President Yushchenko say last week, the rule of law, freedom of speech, a free press are part of the European political culture which needs to be ingrained here.

The pursuit of EU membership is key to this.  There is no firm date, but an objective of the year 2020 is widely acknowledged.  This is a time of considerable change in those countries which have an impact on Ukraine either directly or indirectly – a new Prime Minister in Britain, a new President of France and relatively soon new Presidents in the USA and Russia.

I agree with the Foreign Minister when he said that Ukraine needs a positive sign of full prospective EU membership, and the setting down of the criteria for progress.

The drive for change is being led in many respects by the Ukrainian business community. Ferrexpo, the UK holding company that owns Ukraine’s largest iron ore exporter, began trading on 20 June on the London Stock Exchange. There will be other companies that will do this.  London is increasingly seen as the world capital of financial services. Young Ukrainians are doing very well professionally in London, including two of our Society’s directors.

I am so grateful to so many of you for coming. I hope many of you will become members.

We are enormously looking forward to strengthening links between the two countries as the Society evolves its programme of activities. We are wholly committed to the success of this venture and feel hugely optimistic about the future of our society.

Ukraine is going through a difficult phase politically at present, with conflict between the President and Prime Minister. Ukraine is certainly not the only country where the two top politicians in government cordially dislike each other!

The Orange Revolution excited the imagination of the democratic world. However Ukraine is split in varying degrees between those who look westwards towards Europe and NATO and those who wish to be more accommodating to Russia. The country is rich in natural resources and strategically is vital as so much of Europe’s energy supplies transit through Ukraine.

It is hugely important that the country succeeds, and Ukrainians look to us, of all the countries of Western Europe to support them. Many thousands now live here or have established business connections here.

Last night we launched the British-Ukrainian Society – 250 people came, and there is much enthusiasm. I am the new chairman. There are already many organisations in this country linked to Ukraine, but we hope to provide an umbrella organisation for these links. Whether it is political, business, cultural or educational, we shall try to strengthen the bonds between the two countries.