Black Sea countries establish economic organization (06/21/98)

Black Sea countries establish economic organization

by Roman Woronowycz
Kyiv Press Bureau

KYIV - Leaders of 11 countries of the Black Sea region on June 4 in Yalta announced the transformation of a loose grouping of states of the Black Sea Economic Cooperation forum into a regional economic organization.

They signed a charter that formally joined the countries into the newest international economic cooperation organization and a joint declaration that stressed they would pursue cooperation to promote peace and stability in the region.

In its declaration the organization identified its long-term goal as the creation of a Black Sea-European economic zone

Ukraine's President Leonid Kuchma, who hosted the event, called the event "of historic significance because it will usher in the emergence of a new international structure."

Nine presidents and two prime ministers took part in the forum, the fourth plenary gathering of the 11 member-states since 1992.

While Russia and Greece sent their heads of government, the nine other members, Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Moldova, Romania, Turkey and Ukraine sent their presidents.

President Leonid Kuchma, who spearheaded the integration of the 11 countries into an the Black Sea Economic Cooperation Organization (BSECO), in his opening speech identified the immediate objectives for the organization as the development of cooperation in the fields of transport, energy, communications and ecology.

He called the building of a single transport system for the Eurasian corridor, and several others, a major priority for Ukraine. "I am convinced that the implementation of this ambitious, yet absolutely realistic project would facilitate international carriage of cargoes across the vast space from China, via Central Asia and the Transcaucasus, to western and northern Europe," said President Kuchma, according to Interfax-Ukraine.

Another objective that was discussed among the 11 leaders was the establishment of an oil transport system from the oil-rich fields of the Caspian Sea to European markets, which Ukraine is hoping will utilize the still-to-be-completed Odesa oil terminal as a transfer point for oil from the Caspian Sea on its way to Europe. The European Bank for Reconstruction and Development has held up financing for the oil terminal until Ukraine can prove the project's economic viability.

However, Georgian President Edvard Shevardnadze, the former foreign affairs minister of the Soviet Union, emphasized in his address before the forum that the territorial conflicts in the Georgian region of Abkhazia must be resolved before any plans are laid for the transportation of oil from the Caspian Sea. "Certain forces are using the old conflicts and unleashing new ones, trying to prevent the implementation of that project," said Mr. Shevardnadze.

He also called for the formation of a free-trade zone that would include the member-states of the BSECO as well as countries of the Middle East and the Caspian Sea regions.

He focused also on the need for the newly formed organization to intensify contacts with the European Union.

Russian Prime Minister Sergei Kiriyenko praised the idea of a free-trade zone and called for the development of a united electricity system that would link all the member-states, according to the Associated Press.

The organization, which will have its headquarters in Istanbul, has set up a Black Sea trade and development bank in Salonika, Greece. The leadership of the BSECO will rotate every six months, according to the charter, and all decisions are to be made by consensus.

The first meeting that led to the creation of the BSECO was held in Istanbul in 1992, followed by summits in Bucharest in 1995 and Moscow in 1996.