Ladies and gentlemen,

As a representative of Ukraine which as you know, will soon host the GUUAM summit in Yalta, I will allow myself to shift the accents of my presentation towards institutionalization of GUUAM, - an event, anticipated so long by the members of GUUAM group as well as by international community.

As it is planned GUUAM summit will be held on 6-7 June in Yalta. The presidents of the GUUAM countries are going to come to Ukraine to lay, as we expect, the legislative foundation for cooperation between GUUAM countries in different spheres of its activities.

The importance of this event is first of all motivated by the institutionalization of GUUAM, which means that the group could eventually be transformed into international regional organization.

The basis for GUUAM as organization will constitute the GUUAM Charter, which is expected to be signed during the upcoming Summit as well as Convention on rendering mutual consular assistance. The Free Trade Zone Agreement previously was planned to get ready for Summit too but for the time being is still undergoing final experts’ assessment.

The question often posed on the current events in GUUAM is what advantages the young group gains by transforming into organization?

Well, in the course of few years of existence and activities of GUUAM we observed the process of shaping the visions and perspectives of main priorities and projects for GUUAM, the realization of which would be beneficial for countries as well as for the geopolitical scene in the region. In that process it became clear that cooperative efforts of Georgia, Uzbekistan, Ukraine, Azerbaijan and Moldova open a wide range of projects in all imaginable areas - be it energy transportation routes, pipelines security, communication projects, establishment of free-trade zone, crisis management etc.

The stage of informal group allowed only exploring various projects. The establishment of organization, which could bring together experts from all the countries concerned on a regular basis to mutually scrutinize and analyze the efficiency of projects, is now the demand of time.

For this purpose the GUUAM Charter defines the aims of GUUAM cooperation such as:

• promotion of social and economic development;
• strengthening and extending trade and economic relations;
• strengthening the regional security;
• development of relations in scientific, cultural and humanitarian spheres;
• interaction in the framework of international organizations;
• fighting international terrorism, organized crime and drugs dealing.

There are several major prerequisites, which define the potential success for GUUAM future.

First, that is concurrence of economic interests of Ukraine, Georgia, Azerbaijan, Uzbekistan, and Moldova, in particular, those pertaining to search for alternative routes of transporting the Caspian oil, implementation of Eurasian transport corridor project, prospects of cooperation with the European and Euro-Atlantic structures.

Second, geopolitical situation of the GUUAM countries, their historic ties, cooperation in the framework of other international structures dictate them the necessity to strengthen economic and political relations of special partnership and broader cooperation at the regional level and in addressing international issues.

Third, it is a grouping of equal countries of the post-soviet area uniting states of the same political and economic orientations.

Thus, the institutionalization of GUUAM based on pragmatic interests, is an evidence of development of new structures of economic and political interests which prove to be more viable and, who knows, in the future, may become alternatives to traditional international organizations.

As it is evident from the aims of GUUAM, the economic dimension, which has a huge potential and oriented for a long-term future is a first and foremost priority. Each of the GUUAM countries has its possibilities for the growth of goods turnout, which could be advantageous for all GUUAM members. With the purpose to harmonize the legislation of all the countries with different economic systems and to create similar, advantageous conditions for their economies Free Trade Agreement, as I mentioned before, is among basic documents of GUUAM.

Now I will take a few moments to speak about Ukraine’s potential role in GUUAM.

Ukraine with its significance as a strategic transit energy route for European countries and refining capacities of its industry has a chance to become an important sector of economic security of Europe. Use of the Ukrainian territory makes it possible to reduce the distance of the transportation of oil from Caspian region to Europe more than twofold. The Ukrainian –Georgian transport corridor of delivering oil to Europe is also much shorter compared to alternative routes. Revenues obtained from transit of energy resources from Trans-Caspian region to Europe would enable Ukraine to solve its own energy-related problems, which remain to be a major impediment for economic independence for Ukraine.

Speaking about peacekeeping activities I would like to focus your attention of Ukraine’s potential in the GUUAM region. Ukraine has training centers and structures, appropriate means and facilities required for preparation and carrying out of peacekeeping operations. The Defense Ministry of Ukraine established the Peacemaking Coordination Center and the decision was approved to establish a specialized Peacekeeping Force Training Center.

Another issue in GUUAM political agenda is its interaction and coordination of positions of the five countries within international organizations such as OSCE, United Nations, Central European initiative, elaboration of special programs in the process of cooperation with European Union and NATO.

From the very outset, GUUAM always associated its goals with the OSCE principles, especially the provisions related to maintaining independence, sovereignty and territorial integrity of these states, creation of a stable political environment around them. As you might notice the high level meetings of GUUAM officials take place within OSCE, UN or Council of Europe.

To succeed, at the present stage there is a pressing necessity to stir up the efforts of the Forum’s member-states in order to respond adequately to the new challenges to stability and security, like the threat of proliferation of weapons of mass destruction and narcotics trafficking. And we fully acknowledge that the credibility in the eyes of international community will be gained if countries start to handle its problems with own combined efforts.

What remains to be questioned is whether GUUAM with its potentially huge projects will succeed as international organization, will its participants be capable to create a common vision and strategy for energy policy and stable functioning of market economies in geopolitical GUUAM area for the future to come.

As it becomes clear - the main challenge for GUUAM is bringing its economies to a European standards, to build the capacity to meet WTO commitments, to strengthen economic and political stability in these countries and to export them on the GUUAM area.

To sum it up, with all the variety of projects brought to your attention, at the stage of informal grouping is impossible to go further than just giving the ideas of various projects.

I hope that acquiring a status of organization will inspire GUUAM members to act more resolutely in order to articulate a positive image of GUUAM in international arena. The way in which GUUAM countries identify and coordinate their common actions will determine the extent of support from international community, which is of utmost importance for GUUAM at the stage of its self-assertion.

Finally, I can not but mention a growing interest of other states towards closer cooperation with GUUAM. And it has been taken into account by the provision of the draft of GUUAM Charter that welcomes all the States that are in line with GUUAM principles to become a member of a new organization.