An exclusive interview of Interfax-Ukraine and Ukraine in Arabic with Ambassador of the Kingdom of Saudi Arabia to Ukraine Mohammed bin Suleiman al-Mashar
Text by:
Mohammad Farajallah (editor-in-chief of the agency Ukraine in Arabic)
Maksim Urakin (Interfax-Ukraine)
Saudi Foreign Minister Prince Faisal bin Farhan arrived in Kyiv on a surprise visit, met with Ukrainian President Volodymyr Zelenskyy and other officials, and agreed on a previously announced aid package. Are there any changes in Riyadh’s position on the war in Ukraine, especially since the Kingdom has been criticized for siding with Russia in the war against Ukraine?
Under the guidance of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud – God bless him – and under the guidance of His Royal Highness Crown Prince and Prime Minister Prince Mohammed bin Salman bin Abdulaziz – God bless him – the Kingdom is eager to provide humanitarian and emergency assistance to countries affected by natural or humanitarian disasters, and to provide support to all countries and peoples without discrimination or any other motives, based on the awareness of Saudi Arabia of the importance of its humanitarian role at the international level.
His Highness the Crown Prince pays great attention to the implementation of humanitarian efforts along with political efforts with various countries to achieve a peaceful solution to end the Russian-Ukrainian war as part of His Highness’s desire to achieve regional and global security, peace and stability.
Your Excellency, is a position of neutrality considered positive in such crises? What role can neutral states play?
The neutral and balanced position of Saudi Arabia in the Russian-Ukrainian war contributed to the success of the mediation led by His Highness the Crown Prince on purely humanitarian principles, which led to the release of ten foreign captives – citizens of the Kingdom of Morocco, the United States, the United Kingdom, the Kingdom of Saudi Arabia, Sweden and the Republic of Croatia, who were held captive by the armed forces of Russia.
In October 2022, the Kingdom announced a humanitarian aid package for Ukraine, which is in line with Saudi Arabia’s position in supporting countries and peoples that are prone to various crises. What role does Saudi Arabia play in the world in humanitarian matters?
The Kingdom’s $400 million humanitarian aid initiative for Ukraine, including power generators and medical supplies, is significant in light of the humanitarian conditions facing the Ukrainian people, especially during the harsh winter.
Previously, the Kingdom provided through the King Salman Humanitarian Aid and Relief Centre, the World Health Organization and the UN High Commissioner for Refugees $10 million worth of medical assistance and shelter materials intended for Ukrainian refugees in Poland.
In recent years, Saudi Arabia has provided over $96 billion worth of humanitarian aid to 156 countries.
The Kingdom of Saudi Arabia has always been among the top ten countries in the world for aid, and in 2021, the Kingdom ranked third in the world for humanitarian aid.
Your Excellency, may I ask what the Kingdom provided to the citizens of Ukraine who were on its territory during the war?
After the start of the Russian-Ukrainian war, the competent authorities in the Kingdom, by royal decrees and for humanitarian reasons, took the initiative to extend the visas of Ukrainian tourists, businessmen and families in the Kingdom for a period of three months with the possibility of extending them without charging any fees or fines.
His Highness the Crown Prince, Prime Minister Mohammed bin Salman held a telephone conversation with President of Ukraine Volodymyr Zelenskyy in October 2022 and reaffirmed the Kingdom’s position in support of everything that contributes to de-escalation and the country’s readiness to continue mediation efforts. Can we rely on foreign mediation to end the war in Ukraine?
Since the beginning of the war, the Kingdom has taken a balanced position regarding the Russian-Ukrainian crisis. It was welcomed by both countries, which have strong relations with Saudi Arabia in several areas. The Crown Prince seeks to use this relationship to reach a peaceful solution to the war.
Since the beginning of the crisis, His Highness has been mediating efforts between the two countries to reach a political solution to end the war as his contribution to maintaining international security and stability. Saudi Arabia supports international efforts to reduce tensions and escalation between Russia and Ukraine, as well as to initiate measures to ensure the restoration of stability and create conditions for negotiations leading to a peaceful and political solution to the crisis based on the Charter of the United Nations and the principles of international law.
Saudi Arabia was among 141 countries that voted in favor of a UN resolution to withdraw Russian troops from Ukraine. Can this position affect relations between Riyadh and Moscow?
The position of the Kingdom and its vote in support of the United Nations resolutions adopted regarding the Ukrainian crisis stems from the commitment to the need for all countries to comply with the Charter of the United Nations and the principles of international law and our complete rejection of any violation of the sovereignty of all countries. The Kingdom declared a clear position on the Russian-Ukrainian crisis, based on the principles of international law. It reaffirmed its support for all efforts aimed at resolving the Ukrainian crisis through dialogue and diplomacy, as well as continuing to work on the implementation of the agreements concluded between the parties concerned and approved by the Security Council in Resolution 2202 on regional security and conflict settlement in eastern Ukraine.
The visit to Kyiv of His Highness the Minister of Foreign Affairs was called historical. Do you agree with this characterization?
The visit of His Highness Foreign Minister Prince Faisal bin Farhan Al Saud to Kyiv and his meeting with Ukrainian President Volodymyr Zelenskyy is considered historic. On the one hand, this is the first visit of an Arab foreign minister to Ukraine since the Russian invasion of Ukraine, and on the other hand, the first visit of a Saudi Arabian foreign minister to Ukraine since the beginning of diplomatic relations between the two countries over thirty years ago.
His Excellency the President of Ukraine justifiably called it historic. In fact, we are very grateful to His Excellency for all his friendly statements about Saudi Arabia. I also hope that this visit will give a new impetus to intensify our mutual dialogue in order to develop bilateral relations.
Can you tell us the details of communication and negotiation?
Support by the Kingdom of everything that contributes to de-escalation, protection of civilians, a serious search for political solutions through negotiations, support for all international efforts aimed at resolving the political crisis, as well as opportunities for expanding cooperation between the two friendly countries and ways to support and develop them in many areas. In addition, we discussed the development of the situation in the regional and international arenas.
Can you tell us about the content of the agreements signed during the visit?
During the visit of His Highness Foreign Minister Prince Faisal bin Farhan Al Saud, two documents were signed in the President’s Office of Ukraine as documentation of the package of Saudi Arabian assistance to Ukraine in the humanitarian sphere, the decision to allocate a separate support package in the amount of $400 million.
Supervisor General of the King Salman Humanitarian Aid and Relief Centre Abdullah Al Rabeeah and Deputy Prime Minister for Reconstruction of Ukraine and Minister of Communities, Regions and Infrastructure Development Oleksandr Kubrakov signed a joint program of cooperation between the Ministry of Communities, Regions and Infrastructure Development the King Salman Humanitarian Aid and Relief Centre in the amount of $100 million. CEO of the Saudi Fund for Development Sultan Abdulrahman Al-Marshad and Ukrainian Energy Minister Herman Haluschenko signed a Memorandum of Understanding regarding a $300 million Saudi grant to finance oil derivatives.
Top managers of the largest Wall Street banks in recent days gave more optimistic assessments of the prospects for the U.S. economy compared with previous forecasts, writes the Financial Times.
In particular, bankers now see a higher probability that the Federal Reserve will be able to provide a so-called “soft landing,” that is, to combat high inflation, while managing to avoid recession.
“The consensus among corporate executives has shifted slightly in a more positive direction. The sagging economy is now expected to be milder than many expected six months ago,” Goldman Sachs Group chief David Solomon said Tuesday at an event hosted by Credit Suisse.
A positive tone also prevailed in a speech by Bank of America Corp. Brian Moynihan, who noted the high consumer activity and resilient profitability of mid-cap companies.
“Consumers have money. They have jobs, they’re spending money and taking out loans,” Moynihan said at a conference on financial services.
Wells Fargo Chief Financial Officer Michael Santomassimo also pointed to “very good consumer spending data.”
Such comments contrasted with statements by bank executives last year when they expressed serious concerns about the state of the U.S. economy, notes the FT.
Despite the growth of optimism, grounds for concern remain. In particular, the head of Goldman Sachs said that the future trajectory of inflation is still unclear, high rates of growth in consumer prices can be observed for quite some time, which will affect the economy as a whole.
“I think we’re going to see weaker, slower growth for a while,” Solomon said.
Earlier, the Club of Experts consolidated and analyzed economic indicators of Ukraine and the world, more details in the video at the link
A new video dedicated to the situation in the Ukrainian and world economy at the beginning of 2023 has been published on the YouTube channel of the “Club of Experts” analytical center. The official data concerning the main macroeconomic indicators was presented in the program as well as the forecasts of the leading world analytics for the years 2023-2024 were consolidated.
According to the analysts, the indicators of Ukrainian economy are stable on the whole. Thus to support it in the conditions of war in 2023 the increase of volumes of macrofinancial help from partners will be required. Thus, the founder of the Club of Experts, candidate of economic sciences Maxim Urakin referred to the IMF assessment, according to which Ukraine’s needs for external financing in the current year will be not less than 39.5 billion dollars and can reach 57 billion.
“This forecast is an expression of a high degree of uncertainty on the part of the world’s leading financial institutions with regard to the situation in the Ukrainian economy, and also demonstrates the increasing pressure on it from expenditures,” the expert stressed.
As for the global indicators, the same IMF forecasts that more than a third of the global economy in 2023 will arrive in recession. In turn, Bloomberg notes a record fall in global stock and bond markets in the last months of 2022. At the same time, investors are more optimistic about this year’s prospects.
“The end of the cycle of interest rate hikes, the recovery of the Chinese economy and the end of the war in Ukraine followed by the recovery of our economy could significantly improve the situation both in our country and in the world,” said Maxim Urakin.
For more details on the situation in Ukraine and the world economy, please watch the video on the “Club of Experts” channel by clicking here:
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The negative balance of Ukraine’s foreign trade in goods in January-October 2022 increased 2.6 times compared to the same period in 2021 – to $7.050 billion from $2.691 billion, said the State Statistics Service. According to them, exports of goods from Ukraine during the reporting period compared to January-October 2021 decreased by 32.3% to $36.859 billion, imports – by 23.2% to $43.909 billion.
Ukraine’s state budget deficit in November rose to a record 170 billion UAH from 143.4 billion UAH a month earlier, including the general fund to 163.3 billion UAH from 147.1 billion UAH, the Ministry of Finance said on its website.
Total national debt of Ukraine in November 2022 increased by 4.2%: in dollar terms – by $4.34 billion, to $107.46 billion, in UAH – by 158.7 billion, to 3.930 trillion UAH, according to the Ministry of Finance website.
According to them, direct public debt last month increased by 4.5% to $97.69 billion, or 3.572 trillion UAH, mainly due to a loan from the European Union ($2.95 billion) and placement of government bonds ($0.56 billion, or 20.44 billion UAH).
International reserves of Ukraine as of December 1, 2022, according to preliminary data, amounted to $27 billion 422.2 million (in equivalent), which is 10.7% more than at the beginning of November ($25 billion 244.2 million), according to the National Bank of Ukraine.
One third (34%) of Ukrainian refugees in Germany want to stay in this country until the end of hostilities at home, while a quarter (26%) are planning to stay in Germany permanently, Deutsche Welle wrote on Thursday with reference to the results of a representative study conducted by three German sociological institutions together with the Federal Office for Migration and Refugees (BAMF).
Russian attacks on the energy infrastructure increased the rate of decline in Ukraine’s economy this November to roughly 41 percent last November, First Deputy Economy Minister Denis Kudin said. “Our expectation for November is minus 41%. That’s significantly deeper than what we forecasted before,” he said during a discussion at the Center for Economic Strategy (CES).
A month earlier, First Deputy Prime Minister and Economy Minister Yulia Sviridenko said at a meeting with U.S. media that Russia’s October energy slump increased the drop in GDP to 39% by October 2021, which is worse than the September-August figure of 35%.
Kudin also pointed out that for this year as a whole, the GDP decline forecast has been worsened to 33.2% from 32%.
Ukraine since the beginning of 2022/2023 marketing year (MY, July-June) and exported 19.66 million tons of crops, including 10.76 million tons of corn (54.7% of total supplies), 7.29 million tons of wheat (37%) and 1.53 million tons of barley (7.8%).
The total area of residential buildings with permits for construction work (new construction) in January-September 2022 halved compared to the same period in 2021 to 5.2 million square meters, said the State Statistics Service.
Commercial real estate operations and construction lead the list of sectors with the highest share of bad loans (NPLs) – 70.2% and 68%, respectively, according to the National Bank in the Report on Financial Stability on the analysis of the largest corporate borrowers on December 1, which accounted for 60% of the net loan portfolio of banks.
According to the document, the total share of NPL in the real estate sector is 62.8%, followed by mechanical engineering – 62.5%, while in the sectors of energy and utilities, as well as metallurgy, the figures are much lower – 46.8% and 45%, respectively (42.7% in the green energy sector).
Head of the project “Economic Monitoring” candidate of economic sciences Maksim Urakin
Port of Reni for the first time since the independence of Ukraine has attracted a new cargo flow – citrus fruits from Egypt, which in peacetime went through the larger ports of “Big Odessa”, the Administration of Sea Ports of Ukraine (AMPU) reported on Facebook.
“Last week a refrigerated vessel “ZEINAB”, equipped with enhanced ventilation and refrigeration units for the transportation of perishable goods, arrived at the port of Reni,” AMPU said in a statement.
In particular, 519.9 tons of fruit were delivered from Egypt: 150.3 tons of oranges, 169.4 tons of pomegranates, 31.05 tons of lemons and 169 tons of tangerines.
AMPU specified that citrus fruits were traditionally transshipped by Chornomorsk and Odessa ports.
The leader among them was the port “Chernomorsk”, which transshipped 253 thousand tons of citrus in the last five years: in 2018 – 83.6 thousand tons, in 2019 – 74.1 thousand tons, in 2020 – 43 thousand tons, in 2021 – 35.5 thousand tons and in 2022 – 16.8 thousand tons.
Port “Odessa” during the same period transshipped 134.2 thousand tons of citrus: in 2018 – 45.4 thousand tons, in 2019 – 40.4 thousand tons, in 2020 – 26.5 thousand tons, in 2021 – 14.3 thousand tons and in 2022 – 7.6 thousand tons.
AMPU reminded that now the ports of Greater Odessa work only within the framework of the “grain initiative”, so the cargo owners are forced to seek other ways to deliver citrus to consumers.
Earlier analytical project “Club of Experts” analyzed in detail the trade and economic cooperation between Ukraine and Egypt, see in detail in the video:
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In the next video YouTube-channel of the analytical center “Club of experts” the prospects of trade and economic relations between Ukraine and Egypt were considered.
As the founder of the Club of Experts Maxim Urakin emphasized, before the war Egypt was the most favorable trade partner for Ukraine, the trade surplus with which amounted to almost 2 billion U.S. dollars. Grain and metallurgical products were the main Ukrainian goods at the Egyptian market.
At the same time, in the first months of the war, the Russian blockade of maritime communications in the Black Sea limited Ukrainian exports to Africa and, above all, to Egypt. The grain agreement improved the situation, but only with regard to agricultural exports. In order not to lose the Egyptian market, the Ukrainian companies have to adapt to the current situation now in order not to make additional efforts after the war.
According to the President of the Ukrainian Exporters Club Eugenia Litvinova, the Ukrainian producers should pay attention to the Egyptian market of dairy products in the first place. In this case, it is necessary to take into account the separation of Egyptian groups of goods for wholesale and retail trade while creating favorable conditions for imports. Also, according to her, the demand in Egypt is for canned and dried fruits, confectionery, chocolate, oils, fats, mineral water, as well as crockery, various cutlery, baths, showers, sinks, building materials and other goods for the retail trade.
“I want to draw attention to the fact that all Ukrainian exporters who want to trade with Egypt, must be registered in the general administration to control exports and imports. After that it is possible to establish logistics through rail and road ways, taking into account the temporary inaccessibility of the port of Odessa”, – she explained.
Besides, Yevgeniya Litvinova noticed that since March of the last year, Egypt obliged Ukraine to use the letter of credit for many groups of goods that leads to rise in price of transactions from 0,2 to 0,5%. This factor, according to the expert, will also directly affect trade and its final results.
“If we talk about advice to our small and medium-sized businesses when entering the Egyptian market, first you need to understand what exports are, if you have not previously been involved in this process. Then you should analyze in which cases it is profitable to open a Ukrainian enterprise in Egypt to work, and in which cases you do not always need to do it and not always profitable. Finally, the third tip – go through the registration. At least look at how to pass authorization, registration through a single window in Egypt. I draw your attention to the fact that your brand should be registered at least in Ukraine before you start to pass this registration in Egypt, “- summed up Eugenia.
In turn, the head of the Egyptian diaspora in Ukraine, Dr. Atia Walid noticed that in recent years Egyptian-Ukrainian trade relations have been intensively developed and our country has been invited to participate in major infrastructure projects, which are now being implemented by the Egyptian authorities.
“Back in 2021 Egypt discussed with the Ukrainian government investment in the special economic zone of the Suez Canal. That is, the Egyptian economic policy is primarily aimed at encouraging investment in the country’s economy. Egypt, of course, is interested in cooperation with Ukrainian companies from the point of view of opening joint ventures on its territory, which can well be realized today, despite the war. I think it is quite realistic for Ukrainian companies to open branches there, if they are interested in the sales market. Egypt is ready to facilitate this,” stressed the representative of Egypt.
In his opinion, our suppliers should work more actively both with the Egyptian embassy in Kiev and the Ukrainian embassy in Cairo. This will facilitate the passage of bureaucratic procedures and reduce the likelihood of becoming victims of fraud.
“Ukrainian businessmen should check with the Egyptian embassy or the Chamber of Commerce the authenticity of the documents of those organizations with which they cooperate. And only after that, conclude a contract according to all international rules. You should not believe the promises and pretty eyes, and do not forget the basics of doing business in the field of export-import. I wish all businessmen in Egypt and in Ukraine only success,” said Dr. Atia Walid.
See more details in the video:
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