The Black Sea Region: New Challenges and Opportunities for Regional Cooperation ( ANALYSES from Ukraine)

1. The Black SeaRegion:New Challenges and Opportunities for Regional Cooperation(ANALYSES from Ukraine) prof. Grygorii Perepelytsia

2. Geopolitical role Ukraine is one of the main links of the vertical axis of transportation and communication ties between the Northern European countries and the Mediterranean and Middle East countries, as well as of the horizontal axis which joins two geopolitical world centers, two civilizations - Europe and Asia. Ukraine plays the role of promoter of European orientation for the Post-Soviet countries of the Black Sea region. The leading role of Ukraine in implementation of European initiatives in the Black Sea region. Ukraine tries to assert itself in the region as a viable and influential country and subregional leader. THE ROLE OF UKRAINE IN THE BLACK SEA REGION

3. Economic role Ukraine is an important trading partner for the countries of the Black Sea region. 2. Ukraine is an important link in providing the European consumer market with fuel and energy resources. THE ROLE OF UKRAINE IN THE BLACK SEA REGION

4. Security role 1. Peacekeeping role of Ukraine in the Black Sea region. 2. Ukraine’s role in implementation of initiatives on the Black Sea security. 3. An active role of Ukraine in protection of sovereignty and territorial integrity of the Black Sea region countries. THE ROLE OF UKRAINE IN THE BLACK SEA REGION

5. In the sphere of security policy: 1. Gaining NATO membership. 2. New actions on security and stability for Caucasus. 3. Demilitarization of the Black Sea region. 4. Maintaining such a power balance in the region which would make impossible the military and political domination of one of the Black Sea countries and promote strengthening of peace and security in the Black Sea region. 5. Settlement of local conflicts and territorial disputes. 6. Fight against smuggling, illegal migration, organized crime and drug business. 7. Improvement of environmental security in the region. KEY ISSUES IN FOREIGN AND SECURITY POLICY

6. In the sphere of foreign policy: Support of democratic processes in the countries of the region. 2. Development of the Baltic and Black Sea cooperation system. 3. Diversification of energy supply. 4. Search for alternative markets for Ukrainian products. 5. Modernization of national economy which is connected with attracting international investments and technologies. 6. Formationof theCaspian – Black Sea – Baltic Energy Transit Space. 7. Implementation of the project on the Danube energy transport bridge. 8. Introduction of the control mechanism over pollution of the Black Sea ecosystem. KEY ISSUES IN FOREIGN AND SECURITY POLICY

7. Priority directions: • security; • energy; • transport; • trade and economic development; • banking and finances; • communication, science and technology; • 7. tourism and environmental protection. VISION FOR REGIONAL COOPERATION

8. Initiatives and projects: • To define those directions for cooperation which may be the most priority ones for the most of Black Sea countries. • To develop specific projects on realization of priority directions for cooperation and provide their proper funding. • To form credit pools and to open new credit lines for funding the large-scale projects concerning development of trade and infrastructure. • 4. To strengthen the dialogue between BSEC and different regional and subregional structures, first of all, with the European Union and European banks for the purpose of promotion of economic and social transformations in the countries of the region. VISION FOR REGIONAL COOPERATION

9. Initiatives and projects: 5. To form the banking infrastructure and a network of business centres for the purpose of funding and information support of both public investments and private business in infrastructure projects. 6. To establish the monitoring and highlighting of dynamics of export and import operations of the Black Sea countries that will enable to find out the weak points and make correction of foreign trade flows in the Black Sea region and, accordingly, will improve the economic situation in the countries of the region. 7. To create the regime of free movement of goods, services and capital that would promote economic contacts, extend the frames of industrial cooperation and joint investments in the sphere of mutual interests. • 8. To unify the customs system of the countries of the region, thus creating a full-fledged system of multilateral accounts and organizing the Black Sea Payment Union in the future. VISION FOR REGIONAL COOPERATION

10. Struggle for dominating in the Black Sea region. • 2. Internal conflicts. • 3. A problem of borders and territorial disputes. • 4. Inequality of economic development of different countries of the region. • 5. A great variety and even contradiction of priorities of the Black Sea Region countries. • 6. Low level of trade and economic relations in the region. LIMITATIONS AND OBSTACLES FOR REGIONAL COOPERATION

11. NATO and EU should play a priority role in the Black Sea region at the regional level, GUAM and other subregional organizations and initiatives – at the subregional level THE ROLE OF NATO, EU, CIS, GUAM, SCO