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Vladimir Putin: Good afternoon.

First of all, I would like to express my hope that you are all satisfied with the Russian chairmanship and with the way Prime Minister Mikhail Mikhailovich Kasyanov has been handling the job. I think Russia as a whole and our Prime Minister have done everything to demonstrate how we cherish our cooperation in the framework of the Council of the Baltic Sea States and thereby to stress that Russia intends to continue constructive cooperation with all its Baltic Sea neighbours.

The Council has a large agenda and judging from the speeches by our colleagues every issue is important and significant. It was not our intention to put the Kaliningrad Region problem at the top of our discussion. But because practically everyone has paid special attention to it, I would like to thank you for doing it because it is indeed a very important issue for us. And I think the issue is important for all of us, but especially for the Baltic Sea region. We are aware that it is above all a problem in the relations between the Russian Federation and the European Union. But the Kaliningrad Region is situated in the Baltic Sea region and, of course, the situation in this part of Europe will depend greatly on how that problem is solved.

Although the issue concerns both the European Union and Russia, the positions of the countries, in particular of the Council of the Baltic Sea States, and the positions of their leaders would be decisive. I have to ask you for a favour, a very simple favour: to look into this problem personally, and not through the eyes of the members of your staffs, and look at the essence of the decisions that are being proposed. I am sure that decisions can be achieved. They exist. But the simplest solution would be to introduce an arrangement that existed in former times between West Berlin and the rest of the Federal Republic of Germany. It was introduced in the mid-1970s. Even then, at the height of the Cold War, solutions were found. Of course, it may not be the best solution because it takes us back to the times of the Cold War, but the proposed alternative we hear about today is even worse than the decisions arrived at in the mid-1970s. They are worse because they may in effect split up the sovereign territory of the Russian Federation. I am absolutely convinced that if we find solutions (I repeat, they exist and they can be implemented given the goodwill), development of this westernmost part of the Russian Federation, the Kaliningrad Region, will result in that enclave outstripping the rest of the Russian territory in terms of cooperation and rapprochement with Europe. It is bound to be that way, but we would never agree to the territory of the Russian Federation being split up. To begin with, the visa regime should be the same for all the citizens of the Russian Federation in whatever part of Russia they live, both for Kaliningrad and Khabarovsk.

We are aware of the complexities connected with the visa regime and the Schengen zone and we do not seek (and I would like to stress it) any special arrangements or special preferences. We respect the policy pursued by the EU. But we ask you to respect our legitimate interests. That can well be achieved given the political will. Judging from the discussion today the political will is there, for which I would like to thank you.

Thank you for your attention.