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Vladimir Putin: Good afternoon, ladies and gentlemen,

The official part of the negotiations with the Federal President has just ended.

Over the past decade Russia and Germany have traversed a path in their relations that is in many ways unique. Many major issues we had inherited from the past have been settled. Close interaction between Russia and Germany is becoming an ever more tangible factor in European and world affairs.

I think it is very important to stress that our interaction is not guided by any time-serving considerations. It has virtually consensual support of the political elite and the business communities of our countries and among the peoples of our countries.

We have agreed with Mr Rau that Russia and Germany have built up considerable momentum above all in the core area of our cooperation, the development of economic ties. We believe that a good basis has been created for upgrading our ties. And this was highlighted by the meeting we just had with the young Russian managers who have done internship in Germany.

Another topic of our conversations is stepped-up contacts in the humanitarian and cultural fields. The Year of Russian Culture is to be held in Germany in 2003. It will be full of numerous projects, tours and exhibitions in various areas and cities of the Federal Republic. We have paid particular attention to promoting youth and citizens’ contacts between Germany and Russia. Our interaction with Berlin, which is one of Russia’s main partners in the world on key world issues, is uninterrupted.

Our agenda includes the fight against terrorism, the strengthening of the foundations of law and order and respect for the interests of all the members of the international community. In this context of major interest are Russia’s relations with the EU, NATO, several regional problems and the strengthening of the UN. I am pleased to note that our approaches to the majority of these issues are similar or even identical to those of Germany.

In the next two days Mr President will have a tight programme of exchanges and meetings in Russia and will also visit Veliky Novgorod. I have no doubt that this visit will help our countries build a new type of relationship and will certainly make a positive contribution to the building of a Europe without dividing lines.

Question: Is Europe committed to finding a mutually acceptable solution to the Kaliningrad problem?

Vladimir Putin: You are simply compromising me. I have just told Mr President that we will not torment him with the Kaliningrad problem and here we go…

I can say that talks are currently underway with the European Commission. It is a very sensitive issue for Russia. We see no reason why our partners should not want to solve it. And what is more, to solve it in a way that absolutely does not violate the Schengen zone, the European visa space, and does not increase the number of Russian citizens who visit the Schengen zone in an uncontrolled manner without a visa. I want to stress that point. A precedent for such a solution exists. It was the procedure for visiting West Berlin that was put in place in 1974, but I don’t think that should be the final solution. Our aim should be to enable Russian citizens to move freely about greater Europe and this is my main message to the European heads of state. We assume that this is our goal. At present, all that it takes to solve the issue is the general political will. I hope we will display it on both sides.

Let us move on to other topics.

Question: A question for President Putin. Mr Rau said this morning that he has some positive signals in connection with the possible ratification of the Kyoto Protocol. Could you state your position on the issue and perhaps you could answer in German?

Vladimir Putin (in German): I do know German, but I prefer to speak Russian at home. (in Russian): We take a positive view of the negotiating process and the goals set by the Kyoto Protocol and we intend to sign it. There are some questions at the expert level and I think you should discuss this topic with the experts. One of the problems is the need to take into account our potential connected with the environmental rehabilitation. Due to natural advantages, the Russian Federation has a vast territory and large forested areas that naturally improve the global environment. But we are committed to positive work in this direction and we hope to sign the document. The Government has been directed to continue work towards that end. The Government has issued a decree to this effect, and I repeat, I hope that the work will be brought to a successful conclusion.

Question: Cultural relations between the two countries have been making rapid progress recently. What is the place of culture in the entire body of Russian-German relations?

Johannes Rau: It is the kind of question which, as we say in Germany, can take a whole evening to discuss. I once said that culture is not “the cream on a pie” but “yeast in the dough”. I think the same can be applied to the relations between our countries and peoples. The past two centuries have produced such a wealth of relations in the field of culture, such a wealth of interaction in the field of literature, the fine arts, theatre, ballet, and music that to me cooperation in the cultural field is the foundation of our interstate relations. In Germany cultural activities and culture are under the jurisdiction of the federal lands and communities, according to our Constitution. I am particularly grateful that there are so many partnerships between Russian and German cities. And not only between cities, but between our lands and the regions of the Russian Federation. We are still discussing the issues which require our attention, for example the issue of property.

Vladimir Putin: It is something that we cannot develop our relations in any area without.