Ukraine is blessed with fertile granaries and is known as one of the world's leading grain producers, including barley, wheat and corn. About 10 years ago, major trading houses such as ITOCHU Corporation, Sumitomo Corporation, and Marubeni Corporation etc increased grain imports from Ukraine. Ukraine has also cooperated with Japan in the handling of accident at the Fukushima nuclear power plant based on an experience with the Chernobyl nuclear power plant accident in the former Soviet Union era. On January 29, MIRUPLUS interviewed Dr. Sergiy Korsunsky, Ambassador Extraordinary and Plenipotentiary of Ukraine to Japan, about the country's grain policy as well as energy strategy. (Photo courtesy by Dr. Korsunsky)
MIRUPLUS (MP)
Ambassador Korsunsky - you have been actively in contact with major trading houses and other stakeholders as soon as you were posted in October 2020. I heard that you met with Masayuki Hyodo, CEO of Sumitomo Corporation last November. What was the content?
Ambassador
Among many issues we discussed the creation of a merger project in the agricultural field, and I would like to participate in Sumitomo Corporation as an investor. We hope that the Ukrainian JV will enter into constructive partner agreements with Japanese companies, leading to joint production and increasing of export of grains and other products. In the grain sector, China is the largest export destination for Ukraine, but that doesn't mean we put China first. Corporate culture is quite different in Japan and China. We value Japan. Because China is a state system controlled by the Communist Party, it does not lead to continuous corporate activities. China is just a big purchaser.
MP
I heard that you also met with Fumiya Kokubu (Marubeni’s Chairman), Chairman of Keidanren's Ukraine Subcommittee, and discussed Japan's relationship with Ukraine related to food security.
Ambassador
In addition to joint production of organic products and export to Japan, we discussed cooperation in the management and treatment of solid waste. It is not a practical stage as the spread of COVID-19 does not converge, but I think we will move towards an agreement. JICA (Japan International Cooperation Agency) is continuing its activities in Ukraine, and details are planned to be closely packed with officials of Keidanren based in Kyiv.
MP
Mr. Kokubu is also said to have discussed the impact of geopolitical processes on global trade. Is this relevant to China's economic expansion into Ukraine?
Ambassador
In 2020, unilateralism was rampant around the world, and conflicts deepened, including in the United States and China, as well as in Europe. As the corona ravages the world, there was a monopoly of China on medical equipment and chemicals, and it has become a very sensitive problem. It means that the trading system, which has been common until now, has collapsed.
In the United States, a new Biden administration took office. Biden said that as soon as he became the U.S. President, he would strengthen the operation of the Buy American Act and prioritize U.S. products in government procurement. Looking at the attitudes of the great powers, I feel that globalization may be not all good. Is it time to reconsider how we can organize the world order to unable critical products production close to home.
MP
What stance will the Ukrainian government take on the growing geopolitical risks?
Ambassador
China seems to control Central Europe. Ukraine's stance is to approach the European market, but not under China's control. We prioritize security in the economy. In that sense, Japan is and will be a good partner for us.
MP
Ukraine is known as a huge grain producer. Currently the international community is increasingly interested in food security issue. What is Ukraine’s grain export strategy?
Ambassador
It's so simple. In 2020, Ukraine ranks second in the world for barley exports, fourth for corn and fifth for wheat. We are among the world’s greatest grain exporters. The continuing conflict with Russia (over the Crimean Peninsula and in Donbass) has led to a destabilizing situation in the heavy industrial zones in the East of Ukraine, which has led to place more emphasis on Ukraine's strength: agricultural policy. So, we will strengthen agricultural production and export.
MP
Next is energy strategy. The construction of Nord Stream 2, a natural gas pipeline connecting Russia and Germany, is now in its final phase. The project is to bypass Ukraine and supply natural gas to Europe. The United States, Ukraine, Poland, and others have opposed the construction, but with completion just around the corner, how do you plan to respond in the future?
Ambassador
Nord Stream 2 is a terrible project. It's not an economic project, but a political one. The biggest problem is not to go through Ukraine. Natural gas will now be transported directly from Russia to Germany. The meaning of this is large.
Until now, by dint of supply of natural gas from Russia was from Ukraine through Central Europe, market was created here, but when Nord Stream 2 is operated, the market will disappear.
Germany will become a distributor, leading to control of natural gas. This means that Nord Stream 2 is not flexible and only interests Germany. In the past, the supply of natural gas to Ukraine from Russia has been banned by political judgment. Despite of this fact, Germany does not expect Russia to stop supplying gas. But that may happen easily.
MP
Is there a policy that Ukraine will focus on in order to reduce dependence on Russia in the energy field? Also, is there anything Japan can do to help put that into practice?
Ambassador
We will focus on the development of hydrogen energy. We think that cooperation with Japanese companies is indispensable in the field of technology. On the other hand, already made significant sacrifices in the Great East Japan Earthquake (March 11, 2011) and the accident at the Fukushima No. 1 nuclear power plant, Ukraine has knowledge of the handling of the Chernobyl nuclear power plant accident, and there are many things that can cooperate with the Japanese government and Tokyo Electric Power Co. (TEPCO). In fact, Ukrainian nuclear power experts are working at the University of Fukushima. It is certain that the corona disaster has hindered our work, but I think we will make steady progress.
◆Dr.Korsunsky’s profile
Dr. Sergiy Korsunsky was born on August 10, 1962 in Kyiv, Ukraine. He graduated from Kyiv National University in 1984. On April 14, 2020 Dr. Korsunsky was appointed Ambassador Extraordinary and Plenipotentiary of Ukraine to Japan. Ambassador Korsunsky has extensive professional experience with strategic planning and development, including energy, trade and investment policy, energy security, regional security, science and technology. He is a well-known expert on the geopolitics issues. Author of more than 320 academic papers and other publications including 7 books, Among them "Nonlinear waves in dispersive and dissipative systems with coupled fields" (Addison, Wesley Longman, 1997), “Energy Diplomacy” (Kyiv, 2008), “Foreign Policy in Times of Transformations” (Kharkiv, 2020) etc. He holds a diplomatic rank of Ambassador Extraordinary and Plenipotentiary. He also holds a Doctor of Science Degree in Applied Mathematics since 1991. (By the Embassy’s official website)
Naoya Abe
Former Bloomberg News reporter and editor
Capitol Intelligence Group (Washington D.C.) Tokyo bureau chief
Currently working as Managing editor at MIRUPLUS
