Official website of the President of Russia

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President Vladimir Putin: The Ukrainian President and I have already begun to discuss issues of our bilateral cooperation. I fully agree with what Leonid Danilovich has just said.

Ukraine stands on the threshold of very important internal political events. We will respect whatever choice the Ukrainian people makes. But of course we are not indifferent to what will happen, as the Ukrainian Presidential elections are not just a formal legal act.

Essentially, the Ukrainian people must determine their future development, as the Ukrainian President just said, the future development of their country. A decision must be made as to whether positive tendencies in economic development will be consolidated. And we can state that there have been positive advancements, particularly recently, and they are significant ones. Of course, Ukraine can be proud of this development of events.

Everything that was established by President Kuchma as the foundation for development of Russian-Ukrainian relations is particularly dear to us. And the future of Russian-Ukrainian relations will depend on how the next leadership of Ukraine organises its policies.

We are certain that the path chosen by the leadership of Ukraine over the last few years fully matches the fundamental interests of the peoples of the Russian Federation and Ukraine. This is a course of development not just of good-neighbourly relations, but in uniting efforts to achieve a higher level and better standards of living for our people to ensure that together, Ukraine and Russia hold a worthy position in the international division of labour, a worthy place in the world.

And we want to wish the Ukrainian Government and the entire Ukrainian leadership further success. And we want to express the hope that our modest efforts, the efforts of the leadership of both countries to achieve this task, will be realised.

I would like to thank the President and Prime Minister once more for accepting my invitation to come here today on this personal occasion.

Thank you very much. For me it is a special sign – sign of attention and respect. And if you invite us, we will also come to you.

Leonid Kuchma: I would like to add a few words – Vladimir Vladimirovich and I continued our discussion that we began in Astana, about the path that we will follow in future. I won’t talk about the Common Economic Space today; it is an axiom which does not need any proof.

We have decided that if we want to occupy a worthy position, then we must take the innovative path in developing our economy. And not by borrowing, but by using our own forces. We have the opportunity to do this today.

Because even the most simple analysis of what we buy in developed countries shows that this is equipment and technology that is seven or ten years old. We have already lost a great deal over these years, but today we must realise that by making a technological breakthrough we can move closer to leading countries. We have no disagreements here, we must determine priorities where we can quickly receive a result – not to try to do everything at once, but to focus on areas where technological breakthroughs are possible, to concentrate efforts on these projects. We hope that the Government fully shares our position.

Vladimir Putin: (talking to Mr Yanukovich) What was economic growth in Ukraine this year?

Viktor Yanukovich: This year, GDP growth was 13.6% and trade turnover growth was 37%. Russia, of course, occupies the lion’s share, and Leonid Danilovich and I have already gone over the results today. We have just over 37%, and growth in this short period is already $3 billion.

Leonid Kuchma: And the growth curve is such that we should have even more for the whole year.

Viktor Yanukovich: We will have a growth of 5 billion for the year, as we planned.

Leonid Kuchma: And especially if we implement what was signed in Astana, and what our governments discussed. We will simplify the process of our borders – simplify the procedure, and this will also be a good stimulus.

Vladimir Putin: Mikhail Yefimovich, how is the progress going on implementing the goals that we set, including the move to levying value-added tax at the destination country?

Mikhail Fradkov: We are working, all the orders have been given. We reached an agreement in Sochi with Leonid Danilovich, and we are all involved in this work. We expect that by the next meeting – 22 October – we will develop a series of positions, and by the beginning of December we plan to reach a series of agreements on simplifying conditions of trade, transport and movement of goods. That is, we are doing all this taking into account the long-term tasks for forming free trade zones, and the Common Economic Space. We are combining all of this in the framework of integration processes and our bilateral relations.

Vladimir Putin: Are there are difficulties in coordination?

Mikhail Fradkov: No, there are no fundamental difficulties, everything is being solved.

Leonid Kuchma: Vladimir Vladimirovich, it is important that we simplify the procedure here. We will do away with many abuses. What I mean is that there should be one invoice. If goods come from Russia to Ukraine or vice versa, there should be one price. Goods come from Ukraine and one price is put one them, and after the Russian border is crossed another price is established.

Viktor Yanukovich: People avoid taxes. Price policy.

Leonid Kuchma: Of course.

Vladimir Putin: The same thing happens in the other direction.

Leonid Kuchma: Yes. So there should be one document on our territory.

Mikhail Fradkov: We are gradually beginning to understand that there should also be common rules on our common border, to protect ourselves from unscrupulous competition from third countries. Any internal freedom of movement means that legislation must be unified.

Vladimir Putin: We will be able to begin a discussion of common social standards, so that people, wherever they live, feel that they are in a common economic and social space, and that they have a worthy living standard.