Ukraine, Brazil agree to cooperate in space and oil/gas exploration

by Maryna Makhnonos
Special to The Ukrainian Weekly

KYIV - A visiting delegation led by Brazil's President Fernando Henrique Cardoso laid the groundwork on January 16 for several bilateral deals on oil and gas exploration off Ukraine's coast, and made provisions for the joint construction of a space booster rocket.

Mr. Cardoso met with President Leonid Kuchma and Ukraine's top ministers during his two-day visit to Kyiv after arriving from neighboring Russia, where he held four days of talks with his Russian counterpart, Vladimir Putin.

Among the eight bilateral documents signed by President Cardoso's delegation was a joint project that would allow both states to offer space research services at the Alcantar space center in Brazil. The deal would make it possible for Ukrainian scientists to work at the facility, and allow Brazilian space researchers to use a Ukrainian-designed Ziklon-4 booster rocket.

The delegations also agreed that Brazil's Petrobraz company would assist Ukraine with technology for deep sea exploration of the Black and Azov seas for oil and gas .

Vadym Kopylov, the head of Naftogaz, Ukraine's state oil and natural gas company, said on January 16 that such exploration is impossible at this stage as Ukraine lacks the appropriate equipment, while the world's leading companies in the natural resources exploration sector show very little interest in Ukraine.

"I think that we can have mutually beneficial cooperation with Brazil," Mr. Kopylov said. "It has to do with mentality, because we understand each other well."

Officials also signed a convention on prevention of double taxation and prevention of tax evasion, an agreement simplifying export and import financial operations, and an agreement on assistance in criminal investigations.

President Kuchma praised the Brazilian government for achieving economic success, saying its example was worthy of emulation. Ukraine has suffered economic decline and has been struggling to reform its economy since its declaration of independence from the Soviet Union in 1991.

The trade volume between Ukraine and Brazil was $169 million (U.S.) in 2000, which is up 16 percent from the 1999 level, the State Statistics Committee said. Bilateral trade in the first nine months of 2001 was $110.7 million, it added.

Brazil is home to about 500,000 members of Ukraine's diaspora.

Copyright © The Ukrainian Weekly, January 20, 2002, No. 3, Vol. LXX

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