Developing Alternative Logistics
In Ihor Liski’s view, the country must look for ways to solve its logistics problems right now, despite the fact that it is expensive and time-consuming.
“Dry ports, transhipment via narrow-gauge rail, extending the track as far as possible, expanding corridors, simplifying paperwork — these are the things that can deliver results when seaports are blocked. And these capabilities should be built in the closest possible co-operation with the European Union,” the businessman says. “We should not assume the war will end tomorrow. This situation could last a long time. And developing new logistics is part of our resilience. We will be able to use it after the war as well. At the very least, products from the western and central regions could be shipped by rail. That will be our resilience and our advantage.”
Investment in Processing
Developing the processing industry will help correct the imbalance between the low price of Ukrainian raw materials and the high cost of the final European product made from them, Ihor Liski notes.
“This imbalance should push us to invest in processing. And we need to look for our own niches. The statistics show that Ukraine’s agricultural sector can count on around €200 per tonne, whereas the average price in Europe is €2,000,” the businessman noted.
Ukraine already has the foundations to roll out a processing industry, Liski is confident: there is land, property rights are protected, there are opportunities for long-term project planning, and so on.
“The only thing missing is project finance. That is a separate story — we need to work on it — but good projects do find funding,” the businessman says.
“It is one thing to grow sunflower; it is another to turn it into oil. To plant a vineyard and make wine from the grapes; to grow soya and process it into soya concentrate, protein, and so on.
I sincerely believe Ukraine has matured to the point where it can create branded products — finished food and finished materials from the agro-industrial sector that can be used in pharmaceuticals, chemicals, industry, and various other fields. And it is even better to start packaging this into final Made in Ukraine brands now, and not be afraid to go and compete in Europe,” the businessman believes.
EU Integration as a Strategic Priority
Without integration into the European Union, it will be extremely difficult for Ukraine to rebuild its economy, Ihor Liski is convinced. Therefore, every possible effort should be focused on European integration in order to speed it up.
“It surprises me that there is still a debate about whether Ukraine needs the European Union with its rules, regulations, standards and restrictions. As if perhaps we would cope better on our own. But in today’s conditions we need to abandon rose-tinted dreams.
The EU is essentially the only major player ready to engage with us for a range of reasons. Even the Americans are prepared to trade us off for Iran or for closer ties with Russia and China. And that is a dangerous trend. But we have cards to play with the EU — we are investing heavily in Europe’s security architecture. We can speak as equals. Besides, economic geography matters. If we are located next to the largest market, why look for some strange arrangements in a world that is becoming ever more fragmented,” Ihor Liski stressed.
So, in his view, the state strategy should be rapid integration into the European market, maximum lobbying for better conditions for Ukrainian agricultural enterprises, and attracting European investment and technology into processing.
“We need to learn how to play alongside European countries — with Polish, Italian, German and Dutch farmers. We must prepare now. Raise our quality standards now. That is why Europe is the only major market for Ukrainian agriculture.
If the parliament votes through the laws needed for European integration, it will mean concrete movement in that direction. And investors will look differently at Ukrainian assets. Even the difficulties we have now will be seen as an opportunity to enter more cheaply and secure better terms. That is how the economic market works. And we will be able to see changes very soon,” the businessman concluded.
