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Opening Address at a Meeting with the Head of the European Union Commity Roman Prodi

April 22, 2004, Novo-Ogaryovo

President Vladimir Putin:

Dear Mr. President, dear colleagues,

I am very pleased to welcome you to Moscow. We arranged this meeting a long time ago in this format, which is unusual for our cooperation. And we are glad that this meeting has taken place. We see it as a good sign, an aspiration towards cooperation, especially as we agreed to improve the mechanisms of our cooperation, and talked of a permanent Council of EU commissioners and our department ministers. This is gradually being realized. And I would like for you to develop good personal and business relations with the according ministers of the Russian Government.

I can only express my regret that in the short time that you are in Moscow, you will not get to know the city. I hope that this will not be your last visit.

I would also like to note positive progress in the course of our discussion process. One of the problems that we have not fully solved is freight transit to Kaliningrad. But this morning, the head of the Russian Customs Committee informed me that the fundamental issues, he believes, have been agreed on with both the European Commission and the Lithuanian partners. In the form of our according partners, the European Commission has made the decision to apply common European customs procedures to the transport of our freight. There are some more details which need to be discussed, but on the whole they have already been tried out with our Lithuanian partners, and will also be tried out over the next week. I hope that the mechanism works. I hope that your visit to Moscow will help the preparation for the EU summit in Russia.

Mr. Chairman, you were the initiator of four common spaces between Russia and the European Union. I think that we should develop our relations in this area.

Romano Prodi: On my part, I would like to express my gratitude and satisfaction that our visit is being held in this format, which really does send a signal to the entire world that our relations go beyond usual partnership, and into the format that we have always talked about – the particular, special nature of our partnership. In your opening address, you already mentioned a number of bilateral issues which are being successively solved and are on the agenda, such as the issue of Kaliningrad, which requires a collective and swift solution which satisfies everyone. Of course, the question may also arise on going against positions on sovereignty. At the same time, we need to think about finding good conditions and possibilities to develop this region, so that the issues at stake are solved as a whole. Favourable conditions for development of the region need to be created.

As for our strategy or joint cooperation, I think that three issues from our side need to be noted. Firstly, there is the desire to regulate the issue connected with the visa regime in relations between Russia and the EU, which would help to solve the common task. And this issue needs to be solved gradually. This year, we begin the process of holding talks on simplifying the visa regime. We hope that it will be completed successfully by signing an according agreement, which will lead us to the solution of the common task connected with the further development of relations between the EU and Russia. The second issue is connected with the development of partnership in such areas as the climate and ensuring appropriate conditions for improving climate conditions. This includes taking into account the interests of both sides in the access of Russian companies to electricity network of the European Union, and on the other hand access by European companies to the market of gas and gas transit into Russia. The next issue is climate change and the need for the Kyoto Protocol to become a reality, of course, without reducing the capabilities for economic growth in the country. I think that there are good arguments for this from our side, which stipulate trade by quotas, and the issue of the greenhouse effect. I think that there are good opportunities here, and this year we will begin the appropriate discussion process which we should realize in 2005, as we plan. This issue is connected with ratification, which lays a good foundation, including for Russia, to diversify its economy, and reduce its dependence on energy sources. I think that we have good opportunities for constructive dialogue in this area.

The third issue I would like to mention is linked with our bilateral relations, and concerns holding talks on Russia joining the WTO. I think that here, something can still be done at a bilateral level before the summit that will be held in May. This really would give a global charge to our partnership, and give us the chance to examine issues before us, so we also do not ignore sensitive issues, and so that our partnership really does reflect the common interests of the parties in cooperation, and so that relations between Russia and the EU become preferential in future, and have a special status, taking into account the joint economic space that is created. And in this matter, we welcome all efforts made by the Russian Federation to carry out the necessary reforms to achieve this goal within the framework of its economy.

April 22, 2004, Novo-Ogaryovo