On October 7-8, 2011 the 2nd International Black Sea Economic Forum took place in Yalta. The Forum takes place annually by initiative of the Council of Ministers of the Autonomous Republic of Crimea with the goal of attracting investment to the peninsula’s economy and developing cooperation between the countries of the Black Sea Basin. This year over 250 delegates from 14 countries participated in the Forum. Among them were high-ranking members of the Ukrainian government and of the governments of other Black Sea countries. Top managers of leading companies in the region and leading internationally-recognized experts also participated. 

This year’s Forum focused on such priorities as interregional cooperation, the potential for attracting foreign and internal investments and enhancing the competitiveness of the Black Sea countries’ economies. Other topics included developing the region’s agricultural sector and tourism. Cooperation agreements between the Autonomous Republic of Crimea and for technical assistance projects were signed during the Forum, as were interregional agreements on intensifying cooperation between Crimea and Ukraine’s regions - the Kharkiv, Odessa, Kherson and Nikolaev regions and the city of Sevastopol. 

During the Forum Ukrainian government representatives Borys Kolesnikov, Vice Prime Minister and Minister of Infrastructure, and Anatoliy Bliznuyk, Minister of Regional Development, Construction and Housing and Communal Services, discussed state economic policy priorities and planned measures to improve cooperation in the region.

Discussing Crimea’s development potential, Mr. Kolesnikov stressed a project to develop a contemporary resort complex on the western Crimean coast. “We’re currently working on a development project for western Crimea. We have already chosen the plots and studied the transportation component. Plans include building a new 63-km long highway between Simferopol and Yevpatoria. We will also strengthen Crimea’s energy and water supply in order to create a real new Black Sea resort by the fall of 2012,” he said.

Kateryna Yurchenko, Deputy Chairman of the Council of Ministers of the ARC for matters of financial and economic activity, in commenting on Crimea’s development strategy, pointed out that the main goal until 2020 is the steady growth of the quality of life of the Crimean people, dynamic economic development and implementation of Ukraine’s strategic interests in the Black Sea region. Discussing the sources for this strategy’s implementation, Ms. Yurchenko said, “The financial sources for implementing the strategy are included in the operational plan for the first stage (2011-2013): there are about 1,000 projects, worth about 4.5 billion euros. They are included in state programs dedicated to such aspects of the peninsula’s life as water supply for Crimea, transport infrastructure and environmental safety, all of which requires financing of 3.5 billion euros for 10 years; these projects are also part of 19 republic-level programs with a financing volume that amounts to 40 million euros annually.”

Discussing the creation of a 21st-century agricultural sector throughout the Black Sea region, Mykola Prysyazhnyuk, Minister of Agricultural Policy and Food Supply of Ukraine, pointed out the need to create a Black Sea commodity exchange that will secure the food balance in the region and provide producers with the means they need to produce goods. “This step will stimulate the development of a grain market in the Black Sea region and attract investment into the grain business. That infrastructural segment will be useful to all participating countries,” he said.

Foreign representatives also spoke in favor of infrastructure project development in the Black Sea basin. Rashid Ismailov, First Deputy Chairman of the Russian National Committee on Black Sea Economic Cooperation, in particular, cited construction of a road around the Black Sea as a key project for the region.

In the course of the Forum investors shared their experiences with doing business in the Black Sea region and discussed the particularities of the investment climates of separate countries. Dario Marchetti, General Director of Danon Ukraine, talked about building up his company’s business in Ukraine. “There is no reason for a long-term investor not to be interested in coming to Ukraine,” he said. Ivica Čačić, Regional Representative for Southeastern Europe and Ukraine of Marriott Hotels International, also said the Ukrainian market was an attractive one.

Among the numerous honorable participants of the Forum were Archil Kekelia, First Deputy Minister of Economy and Sustainable Development of Georgia, Olivier Adam, UN Resident Coordinator in Ukraine, Federico Bonaglia, Head of Policy Dialogue Division Development Centre, Organization for Economic Co-operation and Development (OECD), Karin Rau, Delegate of German Economy in Ukraine, İsmail Safi, Head of the National Delegation of Turkey to the PABSEC, Member of the Grand National Assembly of Turkey, Oleg Ustenko, Executive Director at The Bleyzer Foundation, Rachel Ziemba, Director of Central and Eastern Europe, Middle East and Africa (CEEMEA) and global macroeconomic issues at Roubini Global Economics, Igor Burakovsky, Head of the Board of the Institute for Economic Research and Policy Consulting, Prof. Bernd von Droste, Founding director of the Unesco World Heritage Center, Andriy Ermolaev, Director of the National institute of strategic researches, David Lovegrove, Director, International Development Ireland LTD, Julia V. Santos, Director - Head of Worldwide Strategic Outsourcing, Johnson & Johnson, John F. Tercek, Vice President, Commercial and New Business Development, Royal Caribbean Cruises Ltd., Kateryna Yurchenko, Deputy Head, Council of Ministers of the Autonomous Republic of Crimea on financial and economic activities and others.

Black Sea Economic Forum is an annual international platform for the dialogue of leading government and business representatives in the Black Sea region, organized under the auspices of President of Ukraine Viktor Yanukovych by the Council of Ministers of the Autonomous Republic of Crimea. In 2010 Forum brought together over 250 participants from the Black Sea basin countries, such as: Ukraine, Russia, Georgia, Turkey, Bulgaria, Romania, Greece, Moldova, Armenia and Azerbaijan.

II International Black Sea Economic Forum, which will take place on October 7-8, 2011 in the Livadia Palace in Crimea, will bring together for rewarding discussion over the investments potential of the Black Sea countries key representatives of government, business, expert circles and media from more than 10 countries of the Black Sea region as well as the high-level speakers and experts from Belgium, Great Britain, Ireland, Singapore, USA and France.

Among the numerous honorable participants of the Forum, who have already confirmed their participation are: Andriy Klyuev, First Vice Prime Minister of Ukraine, Boris Kolesnikov, Vice Prime Minister, Minister of Infrastructure of Ukraine, Mykola Prysiazhnyuk, Minister of Agriculture of Ukraine, Valeriu Tabara, Minister of Agriculture of Romania, Archil Kekelia, First Deputy Minister of Economy and Sustainable Development of Georgia, Olivier Adam, UN Resident Coordinator in Ukraine, Victor Arkhipov, Chairman at Russian National Committee for Black Sea Economic Cooperation, Federico Bonaglia, Head of Policy Dialogue Division Development Centre, Organization for Economic Co-operation and Development (OECD), Rachel Ziemba, Director of Central and Eastern Europe, Middle East and Africa (CEEMEA) and global macroeconomic issues at Roubini Global Economics, Igor Burakovsky, Head of the Board of the Institute for Economic Research and Policy Consulting, Prof. Bernd von Droste, Founding director of the Unesco World Heritage Center, Andriy Ermolaev, Director of the National institute of strategic researches, Vladyslav Kas’kiv, Head of the State Agency for Investment and National Projects of Ukraine, David Lovegrove, Director, International Development Ireland LTD, Garry Vinokur, Director, Emerging Markets, Credit Special Situations & Investments, Bank of America Merrill Lynch. 

Iryna Akimova, First Deputy Head of the Presidential Administration of Ukraine and Presidential Representative in the Cabinet of Ministers of Ukraine, will discuss at the forum the Ukrainian economy’s development prospects, the competitiveness of the Ukrainian regions in comparison with other Black Sea region economies, and regional policy priorities.

“Economic growth in Ukraine has been quite significant. In the last six months GDP gained 4.4%, industrial production rose 8.7%, and the volume of internal investments is recovering. Realistic forecasts give us reason to expect GDP growth of 4.7 – 4.8%, which looks positive compared to that of other countries, and represents a respectable figure,” said Ms. Akimova earlier.

II International Black Sea Economic Forum, which will take place on October 7-8, 2011 in the Livadia Palace in Crimea, will bring together for rewarding discussion over the investments potential of the Black Sea countries key representatives of government, business, expert circles and media from more than 10 countries of the Black Sea region as well as the high-level speakers and experts from Belgium, Great Britain, Ireland, Singapore, USA and France.

Among the numerous honourable participants of the Forum, who have already confirmed their participation are: Andriy Klyuev, First Vice Prime Minister of Ukraine, Boris Kolesnikov, Vice Prime Minister, Minister of Infrastructure of Ukraine, Olivier Adam, UN Resident Coordinator in Ukraine, Victor Arkhipov, Chairman at Russian National Committee for Black Sea Economic Cooperation, Federico Bonaglia, Head of Policy Dialogue Division Development Centre, Organization for Economic Co-operation and Development (OECD), Rachel Ziemba, Director of Central and Eastern Europe, Middle East and Africa (CEEMEA) and global macroeconomic issues at Roubini Global Economics, Igor Burakovsky, Head of the Board of the Institute for Economic Research and Policy Consulting, Prof. Bernd von Droste, Founding director of the Unesco World Heritage Center, Andriy Ermolaev, Director of the National institute of strategic researches, Vladyslav Kas’kiv, Head of the State Agency for Investment and National Projects of Ukraine, Archil Kekelia, First Deputy Minister of Economy and Sustainable Development of Georgia, David Lovegrove, Director, International Development Ireland LTD, Garry Vinokur, Director, Emerging Markets, Credit Special Situations & Investments, Bank of America Merrill Lynch.

“Ukraine is interesting to foreigners. But Crimea is one of those famous places that everyone mentions,” says Mr. Kulynyak. The minister believes that cultural heritage can play an important role in developing tourism. “Crimea is one of the richest territories in Ukraine in terms of cultural heritage,”  Mr. Kulynyak says, adding that attracting tourists to Crimea depends directly on saving and enlarging the peninsula’s cultural heritage.

Black Sea Economic Forum is an annual international platform for the dialogue of leading government and business representatives in the Black Sea region, organized under the auspices of President of Ukraine Viktor Yanukovych by the Council of Ministers of the Autonomous Republic of Crimea. In 2010 Forum brought together over 250 participants from the Black Sea basin countries, such as: Ukraine, Russia, Georgia, Turkey, Bulgaria, Romania, Greece, Moldova, Armenia and Azerbaijan. The audience of the Forum 2011 will include around 120 participants. High-level government and business representatives as well as the diplomats and experts have already confirmed their participation in the forum.

Commenting on the investment situation in Ukraine, Mr. Klyuev said: “The systematic steps taken by the government have generated results. The total volume of capital stock investments from January–June 2011 increased by 16%, versus a decrease of 7.4% in the same period of 2010. But Ukraine’s position requires more work if we are to improve the domestic investment climate.” 

Mr. Klyuev believes Crimea to be a high-potential region, one in which the most ambitious ideas and models can find realization. “With such potential for development, we can’t stay on the periphery of the world economy. We should take into account that developed countries are already adopting new technologies and creating new technological systems. That’s why our countries should accelerate those reforms that will give us the chance to ensure economic growth on a qualitatively new technological basis,” he said.

Black Sea Economic Forum is an annual international platform for the dialogue of leading government and business representatives in the Black Sea region, organized under the auspices of President of Ukraine Viktor Yanukovych by the Council of Ministers of the Autonomous Republic of Crimea. In 2010 Forum brought together over 250 participants from the Black Sea basin countries, such as: Ukraine, Russia, Georgia, Turkey, Bulgaria, Romania, Greece, Moldova, Armenia and Azerbaijan. The audience of the Forum 2011 will include around 120 participants. High-level government and business representatives as well as the diplomats and experts have already confirmed their participation in the forum.

Ekaterina Yurchenko, Deputy Head for financial and economic activity of the Autonomous Republic of Crimea, presented the results of the I International Black Sea Forum at the working session of the Council of Ministers. She also announced the key objectives for the Forum-2011. The first forum took place in Yalta in 2010.

Ms. Yurchenko noted that Forum-2010 improved cooperation between Crimea on the one hand and the European Union and Black Sea region countries on the other. The latter expressed their interest in taking part in, and in investing in, the development of Crimea. A Crimea Development Strategy by 2020 was presented there for members of the European community. In addition, agreements for interregional cooperation between Crimea and the Burgas province of Bulgaria and the Sebu province of the Philippines, one of that country’s most developed regions, were signed.

As a result, the number of official international delegations visiting Crimea has increased – 27 meetings with representatives of different countries have taken place since then. According to Ms. Yurchenko, right after the first forum, the Crimean Council of Ministers received an invitation from European Union representatives to make a presentation about the peninsula’s economic potential and investment possibilities on a European platform. In May, 2011, such presentations took place in London and Brussels.

The most significant evidence of the I International Black Sea Forum’s effectiveness, Ms. Yurchenko said, is the fourfold increase in the volume of international investment that Crimea attracted in the first half year of 2011 as compared to the same period of last year.

Cooperation with business will also be a key point at the Forum. Investors’ requirements for the creation of appropriate conditions on the peninsula and in the whole Black Sea region will be a prime topic.

On the second day of the Forum, the roles of international organizations in the development of Black Sea basin countries and the priorities for the Black Sea region’s growth will be discussed on the example of The Autonomous Republic of Crimea. 

Ms. Yurchenko emphasized that according to the Strategy, the Autonomous Republic should become an effective mediator of Ukraine’s interests in the Black Sea region and a center of business activity for regional countries. The Forum will help in the implementation of this document, strengthen Ukraine’s position as a strong European partner on the geopolitical map, and stimulate the international community’s discovery of Crimea as a new “opportunity window” in the Black Sea macro-region.

Black Sea Economic Forum is an annual international platform for the dialogue of leading government and business representatives in the Black Sea region, organized under the auspices of President of Ukraine Viktor Yanukovych by the Council of Ministers of the Autonomous Republic of Crimea. In 2010 Forum brought together over 250 participants from the Black Sea basin countries, such as: Ukraine, Russia, Georgia, Turkey, Bulgaria, Romania, Greece, Moldova, Armenia and Azerbaijan. The audience of the Forum 2011 will include around 120 participants. High-level government and business representatives as well as the diplomats and experts have already confirmed their participation in the forum.

The current additions to Forum’s Supervisory Board and speakers panel include such representatives of international organizations as OLIVIER ADAM, head of UN Office in Ukraine, Ambassador JOSE MANUEL PINTO TEIXEIRA, head of European Commission in Ukraine, IGOR PODOLEV, EBRD Member of the Board, Executive Director to Ukraine, Romania, Moldova, Georgia and Armenia, a director of the EBRD, KARIN RAU, Delegate of German economy in Ukraine, JORGE ZUKOSKI, the President of the American Chamber of Commerce in Ukraine; such experts as VALERIY GEYETS, Director of the Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine, Director of economic forecasting, ANDRIY YERMOLAEV, Director of the National Institute for Strategic Studies under the President of Ukraine; such business community representatives as OLEKSANDR YAROSLAVSKY, Chairman of the DCH IM Supervisory Board, NATALIA YARESKO, Managing Partner and Founding Partner of Horizon Capital, OLEXIY KREDISOV, partner, Ernst & Young; such media professionals as COURTNEY FINGAR, editor, fDI Magazine/ Financial Times, RICHARD EAMES, editor, The Economist, and other esteemed guests.