FOREIGN ECONOMIC RELATIONS BETWEEN UKRAINE AND THE KINGDOM OF SAUDI ARABIA

Abstract

It is studied the setting up and development of economic relations between Ukraine and the Kingdom of Saudi Arabia at the article. It is analysed the common features and specifics, referred to the problematic aspects and prospects of Ukrainian-Saudi cooperation in the economic sphere. It is emphasized that the Kingdom of Saudi Arabia is an important actor in the international arena, occupies a strategically important position in the Middle East and has one of the strongest economies in the region and is an important partner of Ukraine. It is indicated the importance of signing of the “Agreement between the Cabinet of Ministers of Ukraine and the Government of the Kingdom of Saudi Arabia on trade, economic, scientific, technical and investment cooperation,” creation of the tool of the bilateral cooperation in the economic sphere — the Intergovernmental Ukrainian-Saudi Commission for trade-economic and scientific-technical cooperation, Ukraine-Saudi Arabian business Council. The great attention is paid to the importance for the two sides of the development of the cooperation in the agricultural sector. It is reported that both countries are interested in Ukraine’s exports of agricultural products such as barley and wheat. It is noted that another area of agricultural cooperation became livestock raising, especially sheep breeding. It is referred on the signing of the Convention between the Government of Ukraine and the Government of the Kingdom of Saudi Arabia for the avoidance of double taxation and discussion cooperation in a sphere of investment projects. Based on official statistics, there are grounds to speak about the existence within us investigated period (2005–2014) positive trade balance for Ukraine. Overall, the cooperation between Ukraine and Saudi Arabia in the field of commodity exchange shows a trend of a gradual development. However, an amount of a trade of services remains relatively low and doesn’t tend to the annual growth. It is shown that the bilateral cooperation has substantial reserves in an aircraft construction. However, an investment cooperation between Ukraine and the Kingdom of Saudi Arabiahas not yet gained significant scale. A promising area of investment cooperation could be an attraction of investors from Saudi Arabia to the privatization’s process of industrial, tourist and recreational objects in Ukraine and a realization of agricultural projects in our country. An important form of cooperation between Ukraine and Saudi Arabia could be cooperation in an energy sector. It is emphasized that areas of cooperation such as the agricultural sector and aircraft construction become really significant scale. It could be served widening of the structure of Ukrainian’s goods and services export to the markets of Saudi Arabia to deepening of economic relations. The author offers proposals to optimize and enlarge the further relationship. Thus, foreign economic Ukrainian-Saudi relations are characterized by the mutual interest of the parties and the gradual expansion of cooperation in specific areas. It is indicated how important for the Ukrainian state is to develop the cooperation with the leading state as the Kingdom of Saudi Arabia to the level of strategic partnership. The economic benefits of cooperation between two countries have no doubts. In general, there are considerable resources for further intensification of trade and economic cooperation between two countries.