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Vladimir Putin: Ladies and gentlemen,

I am truly happy to once again welcome to Moscow President of Bulgaria Mr Georgi Parvanov. His first official visit to Russia is dedicated to a significant event – the 125th anniversary since our countries established diplomatic relations.

I am certain that the visit will become a serious step on the way to bolstering bilateral ties. I would like to say straight away: the talks confirmed our common desire to develop bilateral interaction, and this position is reflected in the Joint Declaration we signed today.

The agreements we signed today on cooperation between the highest judicial instances of our states, as well as on cooperation in cinematographic sphere, are an important step in the development of bilateral legal-contractual relations and the improvement of the legal framework.

During the talks, we noted that Russo-Bulgarian ties have been making dynamic progress in all areas. Accordingly, the bilateral trade turnover increased by a quarter in 2003 and reached almost half a billion dollars, while in the first quarter of this year, the figure was already almost half a billion dollars. Our common task is, of course, not to rest on what we have achieved.

We see great prospects for the development of cooperation in the energy sphere, machine building and tourism. Russian businessmen have plans to take part in the modernisation of production and transport infrastructure, in investment projects and programmes. Our close cooperation will have a real effect on making the national economies stronger. The ongoing Russo-Bulgarian business forumm, we believe, is an entirely modern and highly promising initiative. I am certain that it will facilitate more enhanced contacts between our countries’ industrialists, entrepreneurs and financiers.

For decades, closeness of spiritual and cultural traditions have been at the basis of Russo-Bulgarian relations. And, of course, today, as in the past, contacts in the field of science, art and education are considerably enriching our interaction. Obvious proof of this came in the form of the success of the last year’s Days of Russian Culture in Bulgaria and the Days of Bulgarian Culture in the Russian Federation.

I would also like to mention the forum of Slavonic cultures; Russia and Bulgaria played an active role in seeing it established.

We dedicated a considerable part of our meeting today to international problems. We pointed to the need to bolster up stability and security, develop joint efforts to counteract global and regional threats. These include local conflicts, terrorism, organised crime and drug trafficking.

Naturally, one of the key subjects at the talks was increasing confidence in security and stability in the Balkans. We again confirmed that our approaches here completely coincide. Russia positively views Bulgaria’s stabilising role in South East Europe. In our opinion, it would be highly useful and promising to discuss multilateral initiatives and projects in this part of Europe.

In conclusion, I would like to stress that I have the most positive view of the results of our talks and I am certain that they will make a significant contribution to the development of bilateral contacts. Thank you.

Georgi Parvanov: Dear Mr President,

Ladies and gentlemen,

The day of this visit is truly symbolic. But the point of last talks was not limited to our past – the Bulgarian nation’s sense of gratitude – but to the future, to the long-term. The talks genuinely showed trust and openness, but, without doubt, the pragmatism too. These talks highlighted that our states enjoy new, modern relations.

I am satisfied that many of the assessments put forward during the talks were reflected and included in the statement that President Putin and myself have signed. I congratulate the leadership of the highest judicial bodies with signing of the today agreements. Assessments of the current legal framework indicate that it has been largely modernised. We believe that additional efforts are needed with regard to specific draft treaties.

This concerns the treaty and protocol to it on the support for and mutual protection of investments, which should be ratified soon. Assurances were given that the process to advance draft agreements on reciprocal social security for people working in our respective countries would be accelerated. We can expect that certain steps will be taken to make progress on the trilateral agreement between Bulgaria, Russia and Ukraine on the transit of spent nuclear fuel.

Along with this, there is entirely good news relating to the activity of an inter-governmental commission and also on the appointment in the near future of the new co-chairman from the Russian side.

As usual, our talks focused on interaction in the energy sphere. Work is proceeding – and will soon be completed – on a long-term interaction programme in the energy sphere. One can say that Atomenergoeksport in conjunction with Framatom is a source of great hope in future work on completing the Belene nuclear power station. Naturally, we are waiting for the Bulgarian government’s opinion about all the worth candidates in relation to this issue in the near future. We expect increased interested from Russia with regard to the privatisation of energy facilities, such as the Varna, Ruse and Bubov-Dol plants.

In addition, we are waiting for the Bulgarian part of the construction of the energy supply system to be completed in the future. Both sides have confirmed the strategic importance of the Burgas-Alexandroupolis privatisation project and their willingness to exchange specific proposals on resuming work on this project. The improvement of transport ties, particularly ferry links, is an important condition for stepping up our economic contacts. Both sides have confirmed that they are prepared to work in this area.

The issue of the final payment of Russia’s debt to Bulgaria was raised with the Bulgarian side. I would like to thank Mr Putin for his assurances that this matter will be finally settled as soon as possible.

An agreement on the resumption of expert work on weapon licensing was reached. We regard the development of regional cooperation as a particularly beneficial opportunity. The sides expressed their willingness to fix these intentions in documentary form.

I have mentioned all these specific things, ladies and gentlemen, so that you can be sure that out talks are proceeding at a good working level.

I can confirm that our positions on the situation in South East Europe coincide, as well as on the need for the European community to take a more active part in the life of the Balkans, in particular, in Kosovo.

Thank you for your attention.

Question: Vladimir Vladimirovich, this is your seventh meeting with President Parvanov. What are Russia’s priorities in bilateral cooperation? With your permission, let me follow up on this question: all international organizations – economic and political – are undergoing reforms. Will it have any significant impact on bilateral relations, including those with the European Union and NATO?

Vladimir Putin: Indeed, President Parvanov and I have developed very close cooperation in the last few years and I think this is positively reflected in the development of inter-state ties. We have already talked about how the trade turnover between our two countries increased by 25% in 2003 alone. Russian companies are playing an active role in the investment activity on the Bulgarian market. It would be enough to mention just one of our companies, LUKOIL, which has invested more than $400 million in the Bulgarian economy. If equal conditions are created for Russian companies – and I would like to stress not privileged, but just equal with other parties of the investment activity in the Bulgarian market – then I am certain that Russian investments will grow many times. Our companies have shown interest in investing in the energy sphere – above all the traditional electricity sector: we are ready to invest in thermal electric power stations by either buying part of these assets or even leasing them. We are prepared to expand our joint activity in the nuclear energy sphere, and increase, if the need arises, supplies of natural gas to Bulgaria itself and the neighbouring countries. We are interested in taking part in the Bulgagaz privatisation processes and in increasing the volume of oil and gas we pump through Bulgaria to other countries. As the Bulgarian President has already said, our transport ministries have agreed on expanding their activities right up to opening ferry lines and other crossings. We have other areas of interaction and cooperation that we believe to be highly promising.

All this, plus the development of humanitarian ties – the Days of Bulgarian Culture held in Russia and, reciprocally, the Days of Russia in Bulgaria were, in my view, a great success – all this put together gives us reason to believe that our meeting was not merely a matter of words, but facilitated the development of inter-state ties.

As to the second part of your question, concerning the development of Bulgaria’s relations with international organisations such as NATO and the European Union, it is Bulgaria’s choice and we cannot influence these processes, and they do not particularly worry us. However, there are, of course, problems that we should discuss in good time as Bulgaria’s joining the European Union will involve some consequences in the economic sphere. There are certain limitations and we know this. Our experts and specialists know this too. We are energetically engaged in the negotiation process with the European Union on enlargement problems. This process obviously affects the Bulgarian economy. We also talked about this today and agreed that our specialists should work on an inter-governmental commission to prevent any possible negative outcomes for the two countries’ economies. I would like to point out that Russia and Bulgaria are both interested in preventing these possible negative outcomes.

With NATO, Russia, as you know, itself is ideveloping relations within the framework of the Russia-NATO Council. Both sides will decide how to ensure their security independently, depending on what each side considers to be its national priorities.

Question (to the Bulgarian President): Bulgaria holds the rotating chair of the OSCE this year, but recently this organisation has been criticised for having somewhat lost its effectiveness and not always following developments in the modern world. Is Bulgaria, in the position of the OSCE Chair, planning to make any efforts to make the OSCE more effective?

Georgi Parvanov: We discussed this issue during our talks. Bulgaria views its obligations as OSCE Chair with a high degree of responsibility. Indeed, we understand – and understood even before we took over the chair – the great responsibility of this post. Therefore, I would like to stress that it was on Bulgaria’s initiative that the OSCE reform commission resumed its work. Of course, during our talks, we agreed that this group should step up its activities. The Bulgarian side welcomes any opinions and suggestions about this, whether they come from the Foreign Ministry of the Russian Federation, from the ministerial level or other levels, because all this facilitates the implementation of this idea.