KW: In the past few years, the UK has expressed on several occasions its support for Ukraine’s aspiration to join NATO.  What must Ukraine do to become a member of the alliance?

LT: First of all, let me say that this is a decision for Ukraine. It’s not something that anybody else is trying to make Ukraine do, it must be something that Ukraine wants.  The United Kingdom is pleased that Ukraine expressed the desire to join NATO and is keen to support that. On the other hand, there are a number of things that Ukraine needs to do itself and they include internal reforms, such as security sector reform and judicial reform.  We have a situation where countries which are more doubtful about Ukraine becoming a member of NATO say: “Well, look, there’s just a lot of discussion going on in Kyiv all the time, there’s a constant crisis.  How can we give NATO membership or MAP to a country in that condition?”  So, if we had a little bit more consensus in Kyiv, I think that would be helpful in pushing forward NATO membership. 

There are also a range of practical measures where we are cooperating with Ukraine to help it towards NATO membership.  The UK is helping to reform the justice and home affairs sector in Ukraine.  For example, we are assisting in creating a platform for cooperation of government and law enforcement agencies with NGOs aiming to combat human trafficking.  There is a certain amount of defence and security cooperation.  For example, there is a British civil servant working full-time in the Ministry of Defence of Ukraine.  The UK has also provided a lot of professional development training, including English language teaching for officers.

KW: What segments of Ukraine’s economy are the most attractive to British investors?

LT: UK-Ukraine business interests are very strong. Our exports from the United Kingdom to Ukraine increased by 30% in 2007 and in the first half of 2008 they continue to grow quickly.  The UK is the fifth largest investor in Ukraine with over US $ 2 billion worth of inward investments. 

As for the sectors we’re involved in, I’d point in particular to industrial machinery, telecoms, textiles, real estate and banking.  I’ve said  in the past that the Ukrainian investment climate for foreign investors could be improved.  I'm talking here about having a transparent and fair legal system.  We could do more to create a climate where foreign investors feel that they will be treated - always - on a level playing field.

KW: Can British experience be applied to solve some of the problems Ukraine is currently experiencing?

LT: The UK has gone through quite a few changes in the way the economy is run in the last few years.  We have seen quite a bit of focus on pulling the government out of the way business is run and leaving individual businesses to make their own decisions.  I think this is clearly a subject where Ukraine has to take the lead. It’s a job for the Ukrainian people and the Ukrainian government to decide.  Our experience is that you need to set a clear framework for decision-making.  You have to have clear laws and clear rules, so that investors know what they can expect, and so that things are predictable for them.  That way you will encourage investment. I think that’s to some extent what we’ve managed to achieve in the UK.

KW: Looking at the structure of British investments into Russia, we can see they account for 70% of all investments, while for Ukraine this figure is only 7%.  What do you think is the difference between the investment climates in Russia and Ukraine?

LT: First of all, you make an interesting point about British investment in Russia. Although there have been a number of difficult discussions between Great Britain and Russia in the last year or two, our bilateral relationship is strong. The UK has invested 3.5 bn British pounds into Russia’s economy. You mentioned that there is more British investment in Russia than in Ukraine. I don’t think that in any way reflects badly on Ukraine - Russia is a larger economy. As I mentioned earlier, investment from the UK to Ukraine has risen quickly and is very substantial.  In order to increase that flow Ukraine needs to create a welcoming business environment.

KW: What impact do you think the instability of the world’s stock markets will have on Ukraine?  Why is there a mass exodus of investors from our country?

LT: The turbulence on the world financial markets is not an area where I’m a great expert.  But clearly there will be implications for Ukraine.  How serious those implications are will depend on how strong the structures in Ukraine are.
We’ve seen in the case of Russia quite large outflows of investment.  I am not aware of that happening in Ukraine.  I know that investors in Russia have been disturbed by the Russian actions in Georgia.  That has raised questions about how reliable Russia is as a stable member of the world community. Neither of those factors applies in Kyiv.  So I am hoping that we can restore conditions in Russia where investment is welcome  and that we can continue to improve conditions in Ukraine to attract inward investment.

KW: What are the weak spots in Ukraine’s current political situation?

LT: It’s not for me to comment on internal political developments in Ukraine.  At the same time, of course, it is important that every country has an effective government.  This is true also in the context of Ukraine’s application to join the European Union and its wish to join NATO.  Clearly, there are areas where progress is being slowed down because there are not clear decisions being taken in Ukraine. On the one hand, I feel that the vibrant debate that we are seeing at the moment in Kyiv is a sign of a healthy democracy.  On the other hand, at some point you need to complete your discussions on how to form your government and you need to get on with governing the country.  I think it would be helpful if there was a little bit more cohesion, a bit more consensus and a bit more governance in Kyiv.

KW: How would you assess the actions of the EU in the Russia-Georgia conflict? What will happen if Russia decides to do the same with Crimea?

LT: The European Union under the French presidency has played a very important role in bringing about the cease-fire in Georgia and in following that up to ensure the withdrawal of Russian troops.  Clearly, we feel that Russian actions have been  unacceptable, although both sides played their role in bringing about this conflict.  As concerns Crimea, I feel that the long-term solution to problems of this kind is to ensure that there is consistent economic development in these regions.  When I go to Crimea and talk to people down there, nobody tells me that they want to be a part of Russia, they all tell me they want to have a good standard of living and they want to be able to get on with their lives.

KW: Has the visa situation between Ukraine and the UK changed?

LT: Actually, a great deal has changed and that change is going to continue.  Over the past couple of years, the United Kingdom has introduced a series of changes in the way we administer visas for people visiting the UK, including introduction of biometrics (taking fingerprints).  We’ve moved to a system where we have commercial organisations involved in handling visas to make the process more efficient and quicker, so that visa queues have become more or less a thing of the past.  I am pleased to say that we have introduced these changes without any deterioration in our quality of service.

KW: You are a great sports fan.  You actually have a table for table tennis right here in the hall.  What do you think of Andriy Shevchenko’s transfer from Chelsea back to Milan?

LT: On the question of table tennis - if you’d like to have a game later, I’m ready. Secondly, as regards Mr Shevchenko, I am in favour of any steps which weaken the teams in the English Premiere League, apart from Manchester United.  So, I am delighted that Andriy Shevchenko has been transferred away from Chelsea.

KW: Some Ukrainian media have reported that you are writing a book about Ukraine. Is that true?

LT: I am enormously enjoying my work as ambassador here.  There are huge numbers of very interesting people to meet here and there’s a great deal to learn. That’s all great, but unfortunately, it doesn't give me as much time as I would like to write novels.