Second Report of the Ambassador (January 2016)

29/1/2016
 It has been one year and three months since I assumed duties in Ukraine. The weather remains cold since December, and it feels like you are truly in the capital of a northern country when you see Kyiv covered with snow and people walking very cautiously. The Embassy of Japan, as the Embassy of the largest donor country providing assistance to Ukraine, spares no effort to do a good job. Here, I would like to summarize the results of the Embassy’s work following my previous report made last year in May, 2015.

1. Mutual visits of high officials from Ukraine and Japan
 From June 5-6, 2015 the Prime Minister of Japan Mr. Shinzo Abe paid his first official visit to Ukraine. It was a long-awaited visit for Ukraine, and the President of Ukraine Mr. Petro Poroshenko welcomed him with a red carpet treatment. The Prime Minister of Japan visited the Tomb of the Unknown Soldier, a Memorial in Commemoration of Holodomor (a famine which occurred in Ukraine during the 1920’s and 1930’s; it is said to be a result of the agricultural policy pursued by Stalin) Victims. Prime Minister Abe also visited the cenotaph for the people killed two years ago during the demonstrations for the resignation of the former President of Ukraine Mr. Viktor Yanukovych, which is installed near Maidan. Afterwards, Prime Minister Abe participated in an official ceremony at the Presidential Administration building. Prime Minister Abe and President Poroshenko held a small group meeting followed by a plenary meeting with government officials and a lunch during which the current situation and Japan’s assistance to Ukraine were discussed. After that, the Prime Minister of Japan, together with the President of Ukraine, observed 1,500 hybrid police cars provided by Japan, visited St. Sophia Cathedral (a designated World Heritage Site) and late afternoon the Prime Minister and his wife departed for Germany, where the G7 summit was held. Additionally, Ms. Akie Abe, wife of the Prime Minister of Japan, was able to visit a children’s hospital which received a grant under the Kusanone Programme. Ms. Abe also visited the Ukraine-Japan Centre together with Ms. Maryna Poroshenko, wife of the President of Ukraine. The first official visit of the Prime Minister of Japan to Ukraine was concluded having a great impact.
The President of Ukraine, Mr. Petro Poroshenko, was very pleased to receive the visit of the Prime Minister of Japan, after which the meetings of the two leaders took place during the G20 summit in August and the General Assembly of the UN in September 2015. I had the opportunities to meet with the President of Ukraine several times since then, and it is worth mentioning that according to President Poroshenko, he feels very encouraged when reflecting upon meeting Prime Minister Abe. Moreover, I would like to point out that in the President’s address at the annual meeting with foreign ambassadors, which was held in January 2016, Mr. Petro Poroshenko said that Ukraine strongly relies on Japan as the G7 chair.
In September, the Japan-Ukraine Inter-Parliamentary Friendship Group headed by Mr. Eisuke Mori, Member of the House of Representatives, visited Ukraine and held meetings with Mr. Arseniy Yatsenyuk, Prime Minister of Ukraine, and Mr. Volodymyr Groysman, Speaker of the Verkhovna Rada of Ukraine, as well as participated in a welcoming dinner with Ukrainian members of the Inter-Parliamentary Group.
Regarding Chornobyl issues, Mr. Naoto Kan, Former Prime Minister of Japan, and Mr. Hirohiko Izumida, Governor of Niigata Prefecture, visited Ukraine in October in order to see the region where Chornobyl tragedy happened.

2. G7 Ambassadors’ Support Group for Ukraine
 During the G7 Summit in Elmau, Germany in June 2015, the leaders of the G7 countries instructed the G7 Ambassadors in Kyiv to cooperate for ensuring the provision of support for Ukraine. Consequently, the Support Group for Ukraine headed by the Ambassador of Germany, as a G7 chair, was established. Since last June, apart from two long meetings with the President of Ukraine Mr. Petro Poroshenko and two meetings with the Prime Minister of Ukraine Mr. Arseniy Yatsenyuk, talks with key Cabinet Ministers, Governor of the National Bank of Ukraine and other high officials were held in order to discuss main issues that are of particular concern to the G7. Furthermore, as G7 ambassadors, we made joint statements on important matters and pledged to support Ukraine’s reform efforts. The expectations Ukraine has of the G7 are very high and the Ambassadors’ Support Group for Ukraine receives many requests for meeting that increases its activity. Since January 1, 2016 Japan is the G7 chair, I will preside over meetings of the Group at the ambassadorial level. I have already held a meeting for the Ambassadors’ Support Group for Ukraine this year during which further objectives were discussed. Meetings with high Ukrainian officials dealing with anti-corruption, as wells as the Minister of Foreign Affairs Mr. Pavlo Klimkin and the President of Ukraine Mr. Petro Poroshenko are scheduled.
Additionally I would like to report in relation to chairing the G7, renovation and extension of the Japanese Ambassador’s residence was performed. As chair of the G7, a dining hall and a salon suitable for receiving government officials were constructed.

3. Assistance to Ukraine
 As stated in the beginning, Japan is the largest donor country providing assistance to Ukraine. In June, on the occasion of the Prime Minister’s visit to Ukraine, the Vice-Prime Minister - Minister of Regional Development, Building and Housing and Communal Services of Ukraine, Mr. Hennadii Zubko, and I signed the documents for the Project of Modernization of Bortnychi Aeration Station worth USD 1.1 billion. In December, the Prime Minister of Ukraine Mr. Arseniy Yatsenyuk and I signed an agreement on financial assistance amounting to USD 300 million. Furthermore, participating in the handover ceremony of the project for modernization of Kyiv metro cars, together with the Mayor of Kyiv Mr. Vitaliy Klychko, I was paying much attention to ensure the most effective utilization of the large-scale assistance. Moreover, in September, I spent two days visiting the eastern regions of Ukraine in order to see the situation there. Together with the UNDP and UNICEF officials, I visited the facilities, which received assistance under the UN projects financed by Japan. I would like to state that Ukrainian people express their sincere gratitude benefiting directly from Japan’s assistance provided to schools, hospitals and power-generating stations through the UN and other international agencies and Kusanone Programme.
As a member of the Group of Seven, I am focusing my efforts on the issue of implementing reforms in Ukraine. It is necessary to reform a number of institutions in Ukraine in order to fight corruption and attain economic democratization. Japan has organized a seminar on the issue of eliminating corruption in Ukraine and, as a G7 member, is providing various recommendations. Moreover, Japan dispatched a MOFA personnel as a reporting officer to the OSCE Special Monitoring Mission (OSCE group monitoring a ceasefire regime etc.) last August, and Mr. Masaru Tanaka, a Japanese expert, who previously worked for the Central Bank of Japan and the IMF, was appointed as a financial adviser to the Minister of Finance of Ukraine Ms. Natalie Jaresko. In this way, Japan supports Ukraine’s reform efforts providing not only financial but also personnel assistance.

4. Situation in eastern Ukraine and Crimea
 Efforts taken by the parties of the Normandy Format, which includes Germany and France, have made impact, and agreements aimed at stabilizing the situation in eastern regions (Minsk Agreements) had a positive effect on the implementation of a ceasefire, so that fighting in eastern Ukraine has decreased considerably. It is now necessary for Japan to support conducting elections in the occupied territories, which remains a crucial issue. Moreover, I would like to confirm once again that being the second largest country in size in Europe after Russia, Ukraine, except for eastern regions and Crimea, is a safe place and the level of security in Kyiv is very high.

5. Activities of Japanese companies
 Ukraine with its qualified and cheap labour force, as well as possibilities to export to the EU countries free of duty, is not only a trading partner for Japanese companies, but also an attractive investment destination. Unfortunately problems such as an inflexible system and corruption still remain in Ukraine being inherited from the Soviet past and the Japanese private companies are struggling a great deal to overcome challenges, however, the Embassy of Japan spares no effort to provide support to Japanese companies. In this regard, a meeting was organized between the Japanese Chamber of Commerce in Kyiv and the Minister of Economic Development and Trade of Ukraine, Mr. Aivaras Abromavicius. Additionally, opportunities were orchestrated to hold meetings with representatives of custom authorities. Furthermore, when injustice was committed against Japanese companies, the Embassy did everything possible addressing to the relevant ministers, and there were even cases when I directly addressed to the President and the Prime Minister of Ukraine asking for adequate measures to be taken. I am very pleased that Fujikura has recently established a new plant for production of machinery equipment in Ukraine. In February last year, the Agreement between Japan and Ukraine for Protection of Investments was concluded. It was further ratified by the parliaments of both countries and entered into force last November. I hope that the Agreement will lead to the promotion of investments from Japan.

6. Cultural exchange
 I am very pleased that Ukrainian people are very much interested in traditional Japanese culture, such as tea ceremonies, ikebana, karate, judo, as well as its modern technologies. For around two months from October to December 2015, an exhibition of netsuke and maki-e was held in the Khanenko Museum, which is one of the best museums in Kyiv. Moreover, a collection of netsuke belonging to one of the world’s famous collectors of this art form, Mr. Borys Filatov, was also exhibited, and I am very pleased that many people visited the Khanenko Museum to enjoy it. I would also like to express gratitude to all people, including the representatives of the Japanese business society in Ukraine, who kindly provided assistance in organizing the exhibition.
In September of last year, the representatives of Yokohama city visited Odesa on the occasion of the 50th anniversary of sister city relations between the cities and participated in a commemorative ceremony. I would also like to notice that in addition to the rose bushes presented to Odesa by Yokohama, exhibitions and demonstrations presenting Japan and its traditional art were held by the Ukraine-Japan Center as a part of the celebration.
In November, the installation of lightning equipment provided to the Kharkiv National Academic Opera and Ballet Theatre by Japan was completed, and a commemorative performance took place which was also attended by the Minister of Culture of Ukraine Mr. Vyacheslav Kyrylenko. The lighting within each scene was smoothly operated using a computerized system, which as a result made the audience sigh in admiration.