ID :
202953
Tue, 08/23/2011 - 11:26
Auther :
Shortlink :
https://oananews.org//node/202953
The shortlink copeid
MALAYSIAN INVESTORS GET UKRAINE INVITE
By Mohd Khairi Idham Amran
KUALA LUMPUR, Aug 23 (Bernama) -- Ukraine, keen to consolidate bilateral
commercial linkages with Malaysia, welcomes local businessmen to do business and
invest in the former Soviet state, particularly in the oil and gas, energy,
agriculture and aviation sectors.
Its ambassador to Malaysia, Ihor Humennyi, said two-way trade between both
countries is expected to reach RM2.087 billion (about US$700 million)
(US$1=RM2.99 this year from RM1.49 billion in 2010, based on the impressive
January-May performance where trade jumped 76.6 per cent from the same period
last year.
For the first five months, bilateral trade rose to RM925.38 million, with
Malaysian exports to Ukraine contributing RM496.94 million to overall trade
while imports from that country amounted to RM428.44 million.
"In principle, economic relations between Ukraine and Malaysia are
developing rather well this year with imports and exports having risen
substantially," he told Bernama in an interview.
Ukraine's real gross domestic product grew by 5.2 per cent in the first
quarter of this year compared with 4.2 per cent in the same period last year.
Humennyi said Ukraine, which has a population of 46 million people, is also
the largest importer of Malaysian palm oil in central and eastern Europe while
it mainly exports chemicals, fertiliser, iron and steel to Malaysia.
He said this year's target will also surpass last year's trade of RM1.49
billion (US$500 million).
However, he said, the amount is relatively still low and that there is a
huge room for improvement, especially in Malaysians investing in Ukraine.
Humennyi lamented that Malaysian investments in his country were close to
zero, "but hopefully there will be investments in some projects."
He based his optimism on Ukraine having invited Malaysia's national oil
company, Petroliam Nasional Bhd (Petronas), to form a joint venture with its
national oil company to explore its deepwater oil and gas fields.
Previously, Ukraine had forged business ties with Petronas through third
countries such as Kazakhstan, Uzbekistan and Turkmenistan where it supplied the
company with equipment for oil and gas plants.
"We are talking about Petronas establishing its presence directly in Ukraine
and (collaborating) with our national oil company in operating deepwater
drilling in the Black Sea," he said.
However, he said, the proposal is still in the preliminary stage as Petronas
needs to undertake more studies in areas such as the cost of drilling, which can
reach US$200 million (RM596 million) per drill and the success rate, which is
only 50:50 before actual drilling can be considered.
Ukraine's oil and gas reserves are estimated at 2.3 billion barrels, with
natural gas contributing 87 per cent of the total, accounting for 0.6 per cent
of total world's proven gas reserves and 0.2 per cent of oil reserves.
Humennyi said the country is also a producer of energy equipment such as
turbines, generators and transformers.
"Malaysia can leverage on Ukraine's expertise, especially in developing the
Sarawak Corridor of Renewable Energy as well as in constructing other power
plant in this country," he said.
He invited Malaysian investors to tap the potentials of the agriculture and
aviation sectors in Ukraine.
Humennyi said agriculture has always been an important economic sector in
Ukraine, offering very promising opportunities.
"Regarded as the bread basket of the former Soviet Union, the country
accounts for 60 per cent of the world's black soil -- considered the best soil
for agriculture," he said.
He said investing in agriculture will be a smart move as the global demand
for food will increase rapidly in the next two decades, according to the UN Food
and Agriculture Organisation.
Ukraine's agricultural expertise lies in wheat and wheat products as well as
sunflower oil which is widely used in Western Europe.
As for the aviation sector, he said, the country has a well-developed
aircraft building industry and is home to the world's largest aircraft, the
AN-225 "Mriya" as well as the popular transport aircraft, the AN-124 "Ruslan".
Humennyi also stressed the importance of setting up a business chamber to
promote and facilitate the development of trade and investment between both
countries.
"Setting up a chamber of commerce is important because it opens more
opportunities to businessmen as it will enable them to obtain information about
trade and investment opportunities in both countries," he said.
KUALA LUMPUR, Aug 23 (Bernama) -- Ukraine, keen to consolidate bilateral
commercial linkages with Malaysia, welcomes local businessmen to do business and
invest in the former Soviet state, particularly in the oil and gas, energy,
agriculture and aviation sectors.
Its ambassador to Malaysia, Ihor Humennyi, said two-way trade between both
countries is expected to reach RM2.087 billion (about US$700 million)
(US$1=RM2.99 this year from RM1.49 billion in 2010, based on the impressive
January-May performance where trade jumped 76.6 per cent from the same period
last year.
For the first five months, bilateral trade rose to RM925.38 million, with
Malaysian exports to Ukraine contributing RM496.94 million to overall trade
while imports from that country amounted to RM428.44 million.
"In principle, economic relations between Ukraine and Malaysia are
developing rather well this year with imports and exports having risen
substantially," he told Bernama in an interview.
Ukraine's real gross domestic product grew by 5.2 per cent in the first
quarter of this year compared with 4.2 per cent in the same period last year.
Humennyi said Ukraine, which has a population of 46 million people, is also
the largest importer of Malaysian palm oil in central and eastern Europe while
it mainly exports chemicals, fertiliser, iron and steel to Malaysia.
He said this year's target will also surpass last year's trade of RM1.49
billion (US$500 million).
However, he said, the amount is relatively still low and that there is a
huge room for improvement, especially in Malaysians investing in Ukraine.
Humennyi lamented that Malaysian investments in his country were close to
zero, "but hopefully there will be investments in some projects."
He based his optimism on Ukraine having invited Malaysia's national oil
company, Petroliam Nasional Bhd (Petronas), to form a joint venture with its
national oil company to explore its deepwater oil and gas fields.
Previously, Ukraine had forged business ties with Petronas through third
countries such as Kazakhstan, Uzbekistan and Turkmenistan where it supplied the
company with equipment for oil and gas plants.
"We are talking about Petronas establishing its presence directly in Ukraine
and (collaborating) with our national oil company in operating deepwater
drilling in the Black Sea," he said.
However, he said, the proposal is still in the preliminary stage as Petronas
needs to undertake more studies in areas such as the cost of drilling, which can
reach US$200 million (RM596 million) per drill and the success rate, which is
only 50:50 before actual drilling can be considered.
Ukraine's oil and gas reserves are estimated at 2.3 billion barrels, with
natural gas contributing 87 per cent of the total, accounting for 0.6 per cent
of total world's proven gas reserves and 0.2 per cent of oil reserves.
Humennyi said the country is also a producer of energy equipment such as
turbines, generators and transformers.
"Malaysia can leverage on Ukraine's expertise, especially in developing the
Sarawak Corridor of Renewable Energy as well as in constructing other power
plant in this country," he said.
He invited Malaysian investors to tap the potentials of the agriculture and
aviation sectors in Ukraine.
Humennyi said agriculture has always been an important economic sector in
Ukraine, offering very promising opportunities.
"Regarded as the bread basket of the former Soviet Union, the country
accounts for 60 per cent of the world's black soil -- considered the best soil
for agriculture," he said.
He said investing in agriculture will be a smart move as the global demand
for food will increase rapidly in the next two decades, according to the UN Food
and Agriculture Organisation.
Ukraine's agricultural expertise lies in wheat and wheat products as well as
sunflower oil which is widely used in Western Europe.
As for the aviation sector, he said, the country has a well-developed
aircraft building industry and is home to the world's largest aircraft, the
AN-225 "Mriya" as well as the popular transport aircraft, the AN-124 "Ruslan".
Humennyi also stressed the importance of setting up a business chamber to
promote and facilitate the development of trade and investment between both
countries.
"Setting up a chamber of commerce is important because it opens more
opportunities to businessmen as it will enable them to obtain information about
trade and investment opportunities in both countries," he said.
