Serhii Kasyanov on his visit to Japan: Japanese capital will help restore the frontline regions of Ukraine

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On February 19, a Japanese-Ukrainian conference was held in Tokyo on the economic development and restoration of Ukraine, which was held jointly by the governments of the two countries.

As part of the delegation of the Chamber of Commerce and Industry of Ukraine, which organized this visit, Ukrainian businessmen Including Serhii Kasyanov, Chairman of the Board of Directors of KSG Agro.

We asked Mr. Kasyanov to tell us about his impressions of the conference and communication with the Japanese. And also to share plans for the restoration of de-occupied territories and liquidation of the consequences of Russian aggression.

New business opportunities

As is known, the Ukrainian delegation was headed by Prime Minister of Ukraine Denys Shmyhal, and the Japanese side by Prime Minister Fumio Kishida. On February 19, contacts took place at the intergovernmental level.

And on the 20th and 21st, a business forum was held, in which I and other Ukrainian businessmen directly participated. The communication was very productive, built mainly in B2B format, in which representatives of the Japanese Chamber of Commerce and Industry, the export credit agency of Japan NEXI and other institutions were involved.

There were more than 100 people from each participating country, including many businessmen along with officials. First of all, powerful Japanese companies such as the world-famous Kawasaki Heavy Industry, agricultural equipment manufacturers Yanmar Holdings and Kubota Co., telecommunications giant Rakuten Symphony and others should be mentioned.

However, most of the companies from the Japanese side turned out to be innovative startups that the Japanese are very proud of. For example, one of these companies is ready to provide Ukraine with radar equipment for demining, another – a soil analysis system for agriculture.

It should be noted that startup companies are highly motivated to participate in the reconstruction of Ukraine. For them, such projects provide new investment and business opportunities.

7 target directions and an office in Kyiv

During the recovery conference, 56 documents were signed by the Japanese and Ukrainian governments. These are joint projects between state, municipal and private companies of the two countries in various fields.

The Japanese government has identified 7 main targeted areas of cooperation: demining and elimination of destruction, improvement of the humanitarian situation, development of agriculture, energy infrastructure, information and biotechnology, measures to fight corruption.

For the effective implementation of these ambitious plans, the Japanese will open an office of the Japan External Trade Organization (JETRO) in Kyiv. In addition to this organization, the Export Credit Agency NEXI and the Japan Bank for International Cooperation are involved in the recovery of Ukraine.

If counted from February 2022, Japan is currently the fourth largest donor to Ukraine. She has already given us $10 billion in aid. Another $12.1 billion in donor support is now expected, with the first $4.7 billion coming soon.

Post-war perspective: a huge market

To improve the business climate, Japan is going to ease the visa regime for citizens of Ukraine, and the governments of the countries will take measures to eliminate double taxation.

The first plans for upcoming large-scale projects have already been made public. Japan’s Komaihaltec will develop wind energy together with the Ukrainian gas operator. Sumitomo Corp. and Kawasaki Heavy Industries will deal with the modernization of gas compressor stations.

Rakuten Symphony and “Kyivstar” will begin to restore the digital infrastructure of Ukraine. Japanese businessmen are aware of the instability of the Ukrainian situation, but they see great potential opportunities in the post-war reconstruction of Ukraine.

Let me remind you that according to the data The World Bank, the European Union and the United Nations need to spend 486 billion dollars to restore Ukraine.

Why does Japan help Ukraine?

Prime Minister Kisida said the iconic words: “East Asia tomorrow can become what Ukraine is today.” The Japanese are very concerned about the growth of expansionist sentiments in neighboring countries.

Therefore, they consider their assistance to Ukrainians as a contribution to the overall world and their own national security. After the Second World War, Japan adopted a consistent pacifist position, which it maintains to this day.

Therefore, unilateral change of the existing “status quo” by any aggressor is considered unacceptable. Having undertaken to refrain from using weapons against other countries, Tokyo cannot provide us with direct military assistance.

However, it can be about cyber security, artificial intelligence and combat drones for the Armed Forces. But the most important thing is that the Japanese government assumes the possibility of systemic investments in Ukraine even before the end of the war.

On the part of Japan, helping Ukrainians is not only a symbolic demonstration of faith in the future of our country. The Japanese have experience in post-war recovery and elimination of the consequences of natural disasters, which can be adapted to Ukrainian realities. They are ready to share them.

Minimization of risks and market opportunities

In addition, Japan does a lot to minimize the possible losses of its companies, in particular by insuring their economic and political risks by 90%.

Add to this the Japanese government’s decision to open its domestic market for Ukrainian goods. This is a very promising and high-margin market – the Japanese pay well, but they also need high-quality goods.

As they say, “strangers don’t come here”. For the most part, we see goods from American and Canadian companies here. The access of Ukrainian manufacturers to such a large and unique market as the Japanese market is an extraordinary preference and great friendly help for Ukrainian manufacturers.

Our agricultural holding KSG Agro, for example, is already considering the possibility of supplying Japan with high-quality meat products and other goods. We see a desire to cooperate and sincere interest from the Japanese side, which, by the way, is the result of a professional presentation of our opportunities and prospects by representatives of the Ukrainian state.

In particular, the Embassy of Ukraine in Japan and its head, Serhii Korsunskyi, are doing a lot to increase trade between the two countries. Thanks to his efforts, we have a very favorable climate for bilateral cooperation.

By the way, out of 56 signed documents, 7 of them relate to cooperation in the agricultural sector, his signature is on behalf of the relevant ministry.

Our contribution to the recovery of Ukraine

Company From the first days of the war, KSG Agro and the “Future” Charitable Foundation, which I head, have been involved in the work of providing aid to the frontline regions, and later to the de-occupied territories.

Among the main directions are the creation of a food security system, the restoration of agricultural production, assistance to rural communities, infrastructure projects, support for military units and medical facilities.

We are glad that when we came to Japan as part of the government delegation, we found like-minded people with whom we can implement important projects for our country. In particular, we are talking about cleaning the front-line territories from the consequences of war: ruins, wreckage, fragments of shells, and various types of toxic waste polluting the earth.

The fight against pollution of the territory is especially relevant for such regions as Kherson Oblast, which was and, I hope, will remain one of the breadbaskets of the country. Let me remind you that 70% of its area was agricultural land.

Land pollution is a real disaster for the frontline regions. Therefore, our goal is to return Ukrainian lands, infrastructure, cities and villages to a normal, pre-war state, ridding them of destruction and garbage.

I hope that by joining the efforts of Ukrainian, European and Japanese partners, with the support of the leadership of Ukraine and the military administration, we will be able to restore the economic potential and cleanse our land of the consequences of this terrible war.

For reference

Who is Sergey Kasyanov?

Sergey Pavlovich Kasyanov. Chairman of the Board of Directors of the KSG Agro holding. Graduated from the Dnipro State Academy of Construction and Architecture. Candidate of technical sciences. He has state awards – Orders of Merit II and III degrees.

A well-known businessman and public figure. Deputy of the Verkhovna Rada of Ukraine of the 4th convocation (2002-2006). He was the Chairman of the Joint Parliamentary-Governmental Commission on Ukraine’s Integration into the World Trade Organization, Chairman of the Subcommittee on Coordination of EU Cooperation, WTO, BSEC, Committee on European Integration.

In the early 1990s, he founded the “Olvia” corporation, which was engaged in the production and distribution of household chemicals (acquired by Procter & Gamble). Invested in construction, development and retail.

Since the 2000s, one of the leading areas of his business has been the agricultural sector. KSG Agro has repeatedly occupied leading positions in business ratings: TOP-20 most efficient agricultural companies of Ukraine (“Forbes-Ukraine”, 2015), TOP-20 most successful farmers (“Focus, 2015), TOP-10 reputation stability rating (“Business”, 2012) and others.

He is also known for his participation in social projects. More than 20 years as the chairman of the board of the Charitable Organization “Fund for Social Development “Future” implements large-scale social programs.

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