Diplomatic relations between Ukraine and India. Bilateral treaties and agreements. The Treaty on Friendship and Cooperation. Technical, cultural cooperation. Renewal of bilateral political dialogue between Ukraine and India at the level of top officials.
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- Bilateral treaties and agreements
- Trade relations
- Technical cooperation
- Cultural cooperation
Bilateral treaties and agreements
Diplomatic relations between Ukraine and India were established as early as in the 1960s -1970s in the times of the former USSR era when Ukraine, together with other ex-Soviet republics, was providing economic and military aid to the Republic of India that had obtained its independence shortly before. According to the experts' estimation in the days of the Soviet Union Ukraine's contribution to India amounted to approximately 30% of the total Soviet Union aid package while in some sectors - metallurgy, energy sector, heavy engineering, arms procurement (in particular, delivery of transport planes, combatant ships etc) - Ukraine's share was much bigger. The country played its significant role in developing Indian space programs. First Indian space artificial satellites were assembled by the world-known “Pivdenmash" missile plant in the city of Dnipropetrovsk.
The Republic of India recognized Ukraine's state independence on December 26, 1991 and the Protocols on the Establishment of Diplomatic and Consular Relations between Ukraine and India were signed in Kyiv on January 17, 1992.
The Embassy of the Republic of India started its work in Kyiv on May 7, 1992 and Ukrainian Embassy in New Delhi was opened in 1993.
The Treaty on Friendship and Cooperation, signed in March 1992, laid the basis for further intensification of bilateral relations.
A range of reciprocal visits of Ukrainian and Indian high-ranking officials took place after diplomatic relations between the two countries were established. In 1992-1993 there was an exchange of official visits on the level of Presidents. In 1992 Indian Defense Minister arrived in Ukraine and Ukrainian Foreign Minister paid a visit to India in 1994. A number of important treaties were signed as a result of those visits.
In 1995-2001 a number of meetings between Ukrainian and Indian leaders took place in the third countries mostly during the sessions of the UN General Assembly.
A new stage in Ukrainian-Indian relations began in 2001. It has become possible because the leadership of both countries became firmly convinced in the necessity of further comprehensive development of mutually beneficial relations. Ukraine and India are the countries that traditionally share similar vision on a majority of important issues of modern life. Besides, they have a lot in common regarding their ancient and modern history.
The state visit of the Ukrainian President Leonid Kuchma to India on October 2-5, 2002 has undoubtedly become the crucial event in the Ukrainian-Indian relations. The contacts between the two states have essentially intensified since then. The visit has become a turning point in the last decade Ukrainian-Indian bilateral relations and was evaluated by the Ukrainian President as a real “breakthrough".
Renewal of bilateral political dialogue between Ukraine and India at the level of top officials, beginning of a new stage in Ukraine-India relations as well as defining new perspectives in intensifying mutually beneficial cooperation between Ukraine and India in political, trade and economic, military, scientific and humanitarian spheres have become a key political outcome of the Ukrainian President official visit to India.
Another important result of the Ukraine's President visit to India was the decision to put political consultations between the Ministries of Foreign Affairs of Ukraine and India, meetings of the Interstate Ukraine-India Commission on Economic, Trade, Industrial, Scientific and Cultural Cooperation, meetings of the Joint Business Council as well as meetings of Ukraine-India Committee on Cooperation in Science and Technology on a systematic and regular basis.
A range of Agreements on Cooperation in Economic, Legal, Trade and Tourism spheres were signed. Contacts between space agencies of both nations were also renewed. Regular flights between Kyiv and Delhi have intensified the exchange of business delegations.
The official visit of Anatoliy Zlenko, Ukraine's Minister for Foreign Affairs, to India in January 2003 was aimed at consolidating the agreements achieved after the state visit of the Ukrainian President Leonid Kuchma to India in October 2002.
Ukraine-India inter-parliamentary relations commenced during the visit of Volodymyr Lytvyn, Speaker of the Verkovna Rada of Ukraine, to India on 1-4 December 2003. It was the first visit of the Ukrainian top-parliamentary official to India.
During the same period of time Indian Defense and Steel Ministers have paid official visits to Ukraine. Official visits of A. Kalam, President of India, and N. Singh, Minister for Foreign Affairs to Ukraine, are also being planned.
Dynamic character of Ukraine-India bilateral political relations indicates that they have reached a qualitatively new level.
Trade and economic relations between Ukraine and India have intensified in recent years as well. During 2001-2003 there was observed a sustained development of bilateral trade relations between Ukraine and India with exports growing by 56%.
Growth index of the trade turnover ($348.4 mln) for the first 7 months in 2004 is even more dynamic and is higher by 85.5% in comparison with the same period in 2003. These figures almost reflect the trade turnover between Ukraine and India for the whole 2003 year. For the first time in the history of Ukraine-India relations the volume of goods exchange is expected to exceed $500,000 mln in 2004. The leading positions in the Ukrainian export are occupied by metallurgical, machine-building, chemical and energy products. The sale of metallurgical goods in 2003 added $96.7 mln to the Ukrainian budget and made 47.7% of total export volume. The maximum amount of goods that Ukraine traditionally imports from India (more than 40% of the general import volume in 2003) is pharmaceutical products.
Ukrainian enterprises producing metallurgical equipment have been working on the Indian market for many years already. These are such joint stock companies (JSC) as “Novokramatorskyi machine-building plant", “Azovmash" (the city of Mariupol) that supply equipment for oxygen converter manufacturing and “Ukrindustry” consortium that has won tenders for conducting coke batteries' reconstruction at the metallurgical plants in the cities of Rourkela and Bokaro and is participating in the tender at the Bhilai metallurgical group of enterprises.
For years JSC “Turboatom” (city of Kharkiv) has been successfully working with the Indian power generating industry. Having won a number of tenders, “Turboatom” carries out the contracts delivering 4 generating turbines for Indian “Kaiga” and “Radjastan” nuclear power stations.
The Joint venture of JSC “Ukrhydromech" (city of Kremenchuh) and Indian company “Om Metals & Minerals Ltd. ” has won the tender on water-engineering system equipment delivery for the hydro electric power station “Kamenh".
Ukrainian enterprises have good prospects for participating in a number of projects in Indian mining, oil and gas industries, etc.
Quite successful is cooperation between Ukraine and India in scientific and technological spheres. Within the framework of joint cooperation program Ukrainian and Indian scientists work over the range of the research projects in the fields of astrophysics, material and new material sciences, physics of semi-conductors, biotechnologies, chemistry, tubular cells etc. The Days of Ukrainian science are due to be held in Delhi in late 2004. More than 500 representatives of Indian youth arrive in Ukraine for studies every year.
Today we can observe that Ukraine and India have started a new stage of cooperation in all spheres.
Ukraine and India have had trade and diplomatic relations since the 1960s when Ukraine was a part of the Soviet Union. After the dissolution of the Soviet Union, India and an independent Ukraine established diplomatic relations in January 1992. Embassies were soon set up in both countries and a treaty on friendship and co-operation was signed, in 1992, between the two countries to give a boost to bilateral trade. Today Ukraine is the second largest partner from the CIS, involved in trade relations with India.
Since1992 Ukraine and India have signed, atleast 17 bilateral agreements. These include agreements on Cooperation in Science and Technology, Foreign Office Consultation, Cooperation in Space Research, Avoidance of Double Taxation and Promotion and Protection of Investments. Several high powered delegations from both countries have taken part in talks to help inform and educate each other and thus increase trade value.
To improve trade relations between the two countries, in 1999 an Avoidance of Double Taxation Treaty and Prevention of Fiscal Evasion agreement was signed by both countries. More recently, that is in 2001, an extremely important agreement for Promotion and Protection of Investment has also been signed. Joint Business Councils and Joint Buisness Forums have been set up by the Chambers of Commerce of both countries to help interaction and to build better and stronger economic ties at the private sector level. In March 2000, India-Ukraine JBC was signed.
Since 2001, regular sessions of Ukrainian-Indian Inter-Governmental Commission on Trade, Economic, Scientific, Technological, Industrial and Cultural cooperation have been held to find joint solutions to issues which could arise in the process of co-operation between the two sides. This in turn helps to plan and develop the trade and economic relations between the two countries.
"Enterprise India 2004", an exhibition, was held in July 2004 in Kyiv by the CII. Here small and medium enterprises displayed hand tools, bicycle and auto parts. In the recent past, there have been many commercial and trade delegations from India to Ukraine, from sectors as varied as gem and jewellery (Gem and Jewellery Export Promotion Council), agriculture (FICCI), wool and woollen products (Wool and Woollen Export Promotion Council), to herbals segment of pharmaceuticals (PHARMEXCIL) etc. The Mission in association with the Chambers of Commerce and Industry in Kyiv have made arrangements for organising the exhibitions and the buyer-seller meetings.
In 2005, when the Presidents of India and Ukraine met in Kiev, it was mutually decided that by the year 2010 that bilateral trade between the two countries should reach the 5 billion US dollar mark. The bilateral trade between India and Ukraine received a strong impetus because of this meeting of the two presidents and also because of the two high powered trade delegations which visited Ukraine in 2006.
Trade relations have never been better between the two countries and this is the time to address those issues which cause an impediment in our trade relations. One such issue, is the signing of the Treaty of Marine Navigation. Lack of this treaty causes a lot of problems to arise in shipping between India and Ukraine. Also, to make trade and investment more attractive, certain reforms in banking and the financial sector and transparency in taxing is advisable.
To establish and develop a relationship between the Indian and Ukrainian businessmen, the Chamber of Commerce and Industry “India - CIS" plays an extremely active role. They arrange meetings between representatives of both countries, be they from state agencies or the business milieu.
India Ukraine trade relations have been developing at a very fast pace. There has been a three-fold increase in the India Ukraine trade during 2003-2005 and it has exceeded US$ 1 billion. Ukraine imports from India have doubled and stand at US$ 3,214 million in 2006, while Ukraine exports to India have increased by 3.6 times and stands at US$ 7,369 million in 2006. The total turnover in India Ukraine trade during 2005-2006 has exceeded US$ 1.2 billion. The main items being imported by Ukraine from India are:
Ores and minerals
Tea, coffee, and spices
Silk and jute
The main items imported by India from Ukraine are:
Both the Ukraine and Indian governments take part in the sessions of the Ukraine Indian Inter - Governmental Commission which hold the Joint Business Council Meeting of Ukraine-India. This has given a major boost to India Ukraine trade relations. After Russia, Ukraine is India's second largest trading partner in the CIS. Ukraine is not a new member in the Indian industry as its enterprises are actively involved and form the backbone of Indian power sector and heavy industries among others.
There are such joint stock companies as 'Ukrindustry' that has won contracts for conducting coke battery reconstruction at the plants of metallurgy in Rourkela and Bokaro. There are also Azovmash and Novokramatorskyi machine building plants that supply oxygen converter manufacturing equipment.
India Ukraine trade relations has also been successful in increasing cooperation between the two countries in technology and scientific field. Today it can be observed that India Ukraine trade relations have reached a new stage with both the countries increasing cooperation in new spheres.
Trade and economic cooperation between Ukraine and India has been developing at a rapid pace. The trade turnover between the two countries during period of 2003 - 2008 has increased by more than four times and exceeded one and a half billion USD (1655 million USD in 2008).
Accordingly to data of the State Statistics Committee of Ukraine for 2008, as compare with the preceding year, export from Ukraine to India has increased by 35% and reached 1005,6 bln. USD. Import from India to Ukraine has increased by 39% to a sum of 649,9 million USD, with positive trade balance for Ukraine 355.6 million USD.
Dynamic of the Development of Trade between Ukraine and India