Official website of the President of Russia

Transcripts   /

Viktor Yushcheko: Our meeting has convinced me that we have no questions that we cannot answer. We have enough mutual understanding and political will to remove artificial barriers which were created over the years on the path to equal and profitable mutual partnership. I believe that today we have made another important step to ensure that relations between Ukraine and Russia are as constructive as possible. Undoubtedly, the results of our joint work will help the development of the economies of our countries and the prosperity of citizens of both nations. During our talks, we set out a plan for realising priority tasks of Ukrainian-Russian relations for 2005.

Today we have had a very important and fruitful dialogue, and it can be said quite confidently that we have found full mutual understanding on deepening strategic partnership between Ukraine and Russia. We want to change our dialogue fundamentally, and add a strategic component to each treaty and agreement passed.

Today we have discussed issues related to the stationing of the Black Sea Fleet on the territory of Ukraine, joint energy projects, issues of the Ukrainian-Russian border, issues of military and technical cooperation, the Transdniester conflict, issues of the humanitarian sphere and the cultural heritage.

Undoubtedly, the main topic of our talks was trade and economic relations, and trade and economic cooperation. In my opinion, problem no. 1 in these relations is the serious trade deficit and the rather high rate at which it is increasing. If, for example, in 2000 the trade deficit for Ukraine came to around 2 billion, in 2004 trade deficit was already around 6 billion. Almost every year it grows by 36–40%. There is only one way to overcome this problem – to create a free-trade zone. And so we also gave this topic the necessary attention and time. Our governments have been charged with agreeing on proposals for both sides and presentimg an appropriate package of joint actions to be confirmed by the Presidents. I will immediately note that this plan will be highly specific and will make it possible to find mutually acceptable ways of solving problems raised. Our plan will be directed not just to further developing of bilateral trade and economic partnership. Its main priority is to expand the human dimensions of our cooperation, to remove unnecessary obstacles which hinder contact of our citizens. So all issues were raised on the functioning of borders and simplifying procedures for citizens who live in border regions to cross the border. The issue of simplifying the procedure for acquiring citizenship was also discussed.

On all the issues discussed at the meeting, we agreed to give specific orders to our governments: on regulating the demarcation of the Russian-Ukrainian border, on issues of the Black Sea fleet, on the issue of joining the WTO, and the problem of regulating the Transdniester conflict.

To activate our relations in a new quality, we agreed to abolish the intergovernmental Ukrainian-Russian commission. We agreed to create the high-level intergovernmental commission “Putin-Yushchenko”. It will consist of four committees working in specific areas: a committee on defence issues, a committee on issues of international cooperation, a committee on economic relations and a committee for the humanitarian sphere. General coordination of the work of the intergovernmental commission will be carried out by the National Security and Defence Councils of Ukraine and Russia.

I sincerely would like for Vladimir Putin and the Russian side to know that the new Ukrainian authorities are responsible partners, who will always demonstrate predictability, honesty and pragmatic policy towards their strategic partners. I also want to stress: our foreign policy is not built to oppose anyone. The European choice of Ukraine will never be seen by us as an alternative to cooperation with the Russian Federation. Russia is our eternal neighbour, which Ukraine wants to see as its friend and strategic partner. Our talks have shown once more that Vladimir Vladimirovich also shares this position. So it is with pleasure that I give him the floor. Thank you.

Vladimir Putin: Thank you very much. Dear Viktor Andreevich, dear ladies and gentlemen,

First of all, I want to thank the Ukrainian President for inviting me to visit Kiev. We held talks today which were very extensive and very substantial. This is the second time we have met in two months this year. And I think that this dynamic is correct, given that Ukraine and Russia are objectively the closest partners, and in the full sense of this word – here I fully agree with the definition of the Ukrainian President – strategic partners. And it is quite natural that high-level political dialogue between our nations does not put up with any pauses or delays.

At the centre of our attention was almost the entire spectrum of issues of bilateral cooperation. Viktor Andreevich and I have known each other for quite some time, since he was the Prime Minister of Ukraine. I have the impression that he has not fallen out of the ranks of executive power leaders, because the meeting really was prepared very thoroughly. We discussed almost all issues of our cooperation. And I want to say immediately that the conversation was substantial and very open. But most importantly, we are ready for joint constructive work. We can feel this from our Ukrainian colleagues. And we well understand that constant strengthening of multi-faceted Russian-Ukrainian relations match our vital interests, both of citizens of Ukraine and of citizens of the Russian Federation.

Now for the most important results of our meeting.

First of all, we agreed to pass a plan of Russian-Ukrainian actions for 2005. It envisages the realisation of major projects almost in all areas of Russian-Ukrainian cooperation. An important component of this plan should be humanitarian cooperation. Preparation is currently underway in Moscow for the opening of a Library of Ukrainian literature. We, for our part, intend to begin building a Russian cultural centre in Kiev. The Ukrainian cultural centre in Moscow, as you know, has already been opened.

We also discussed events to celebrate the 60th anniversary of Victory. The Russian and Ukrainian peoples well know the price of this victory in the Great Patriotic War, and well understand that victory was achieved not just with weapons, but with the spirit and unity of all the peoples of the Soviet Union.

We also agreed to pass two revised programmes. They are an economic programme, and also a programme of inter-regional and border cooperation. As for the programme of economic cooperation, here on the initiative of Viktor Andreevich we agreed to revise all our priorities, to write them on paper and in the nearest future analyse what has been done and what has not and for what reasons. We need to set out prospects for development.

One of the central topics of the meeting was of course the prospect of development of Russian-Ukrainian economic ties. Last year, mutual trade turnover grew more than 40% and reached the level of $17 billion. Since the beginning of trade and economic relations between Russia and Ukraine as sovereign nations, these are the maximum figures. And they should become the starting point for our further efforts, including in forming a civilised infrastructure of business ties, and development of financial, legal and organisational tools.

The Ukrainian President just talked about a certain imbalance. I think that this is a topic of discussion at expert level. It is probably related with the price increase on energy resources. But we understand the concern of the Ukrainian leadership, and are prepared to look for solutions to theses issues. There is nothing unusual or impossible about them. I think that in the work process we will find these solutions. In connection with this, I would note that today in Kiev, a branch of the Russian bank Vneshtorgbank opened, which will provide for the realisation of major joint projects.

Expanding bilateral cooperation will depend in many ways on the success in forming the Common economic space. I am certain that effective realisation of this idea will give our countries additional capabilities for development of trade and mutual investment to strengthen the competitiveness of our economies. And we have felt the interest of the Ukrainian leadership in advancing this project, of course in the forms and at the rates in which every participant of this project is interested.

The Ukrainian President has already mentioned the other topics which we discussed. This is the stationing of the Russian Black Sea naval fleet on the territory of Ukraine on a long-term basis in accordance with existing intergovernmental agreements, and the work of the appropriate infrastructure. The Ukrainian President and I discussed in detail issues connected with Azov-Kerch regulating. We believe that we need to activate work on preparing agreements which determine specific directions of joint activity in the Azov Sea and the Strait of Kerch. The most important thing is for all our efforts not to hinder economic activity, hinder people living and working normally, but on the contrary, to help them, to create the necessary conditions to develop economic ties and humanitarian contacts between the citizens of our countries. We are certain that this can be done, that these tasks can be solved, and we are fully resolved to solve these tasks together.

In conclusion, I would like once more to thank the Ukrainian President for a constructive and business-like talk. I expect that there will be successful realisation of everything that has been planned. I would also like to thank the citizens of Kiev. We felt a very well-disposed attitude towards our work today, and this was visible from the mood of people in the street. Thank you very much for this.

Question: I have a question for both Presidents. Even though you didn’t mention talks on the gas-transport consortium as such, you probably did talk about this. Please tell me, gentlemen: what do you think is the reason for the virtual absence of Germany in the discussion process in recent years, even though Chancellor Schroeder is one of the initiators of this idea? And in connection with this, Viktor Andreevich, what is the future of the gas-transport consortium today? Thank you.

Mr Putin: The initiators of the creation of this consortium were in fact Ukraine and Russia. And we agreed that we would involve our European partners in this joint work. The most natural partner for us is Germany, as it is the largest consumer of Russian natural gas. And Germany receives the main volumes of gas through the Ukrainian transport system. This is why the idea arose to invite our German partners at the first stage. But we do not rule out the involvement of our other European partners as well – on the contrary, we will welcome it. Gaz de France has shown an interest, as has the Italian company ENI etc. We are prepared to widen this cooperation. But it was quite difficult technically to agree on a bilateral basis on the positions which experts considered to be key positions. On the whole, we believe that the work and the project are in quite an advanced phase. I do not see any problems for its realisation. Today, Viktor Andreevich and I really did give quite a lot of attention to this topic. The President formulated his approach, which is that we will not try to re-examine the agreements reached.

We agree with this. Our position has always been that it is necessary not just to respect, but to fully take into account the national interests of participants of the project, otherwise it will be ineffective. I would like to make it clear for the Ukrainian society that there are no secret agreements. There are none. Russia is interested in our Western European partners taking part in the project, interested because in our opinion, this will make the project more transparent and more civilised. We believe that Ukraine is no less interested in realising this project, because the enormous volume of funds needs to be invested in reconstructing the existing networks and developing them. Well so what, you might say, why has the discussion process come to something of a standstill recently? I think that this is connected above all with the political process in Ukraine. We understand this. We are waiting and are prepared to keep waiting. But I think that now, when the stabilisation process is underway in Ukraine, which we are very happy about, the time has come to advance this process.

Mr Yushchenko: We have reached a mutual understanding on this issue. Our position is that the gas-transport system in its current state remains the property of Ukraine. The goal of the gas-transport consortium is new initiatives which will increase the capability of the gas-transport system of Ukraine. As for the state of talks, I think that Vladimir Vladimirovich is right: in the last four to five months, I think, when such difficult political elections were going on in Ukraine, many people, including the appropriate ministers, did not give the necessary attention to the development of this issue. Vladimir Vladimirovich and I agreed that this week or next, energy minister Ivan Vasil’evich Plachkov and the head of Naftogaz Ukraina, Ivchenko, will visit Moscow, hold the appropriate talks with their colleagues on this issue, and examine the material developed in the framework of this project. And I think that is sufficient for this process to go further.

Mr Putin: I absolutely agree. And I repeat, there must be no ideas that anyone wants to take anything away. For us it is important that everything works and functions. We must ensure for ourselves and be certain that transit of our natural gas to our main consumers in Western Europe will work like clockwork. I must say that Ukraine, of course, has quite large preferences in connections with this. I don’t remember what volume… Yes, it receives 85% of gas for transit.

Mr Yushchenko: 127 billion, 127 billion…

Mr Putin: 127 billion goes to the budget on a regular basis. And if we increase these possibilities, it will receive even more.

Question: Good afternoon, I have a question for the Ukrainian President. At the last meeting in Moscow, you said that soon Ukraine would settle on the format and nature of its participation in the Common Economic Space and would appoint a person responsible for the discussion process. Please tell us, have you done this, has Ukraine settled this and have you chosen a person to answer for this in government? Thank you.

Mr Yushchenko: Yes, the economy minister Sergei Terekhin will deal with problems of the Common Economic Space. I will empower him with the separate status of a special representative of the President on this issue. We are currently in the discussion process. Our position is that the most important and priority stage, especially in the formation phase of the Common Economic Space, in our opinion, is the creation of a free-trade zone, which could eliminate all problems of removals and restrictions of the trade regime. This is the best answer to the optimisation of trade relations and to remove the trade imbalance which we currently have and which is seriously growing. And this is cause for concern not just for the President and government, but for economic subjects as well. We are forced to look for other markets which compensate the drop in positive trade activity, which we have experienced in our bilateral relations.

We believe that the second most important issue which can be solved in the framework of the Common economic space is the formation of infrastructure projects which concern Russia, Ukraine, Kazakhstan, Belarus and other countries. In other words, we must confirm the viability of this structure in these types of projects, to show the respect for the interests of different participants, the different partners of this economic project. Thank you.

Mr Putin: Terekhin, the economy minister, right?

Mr Yushchenko: Sergei Terekhin.

Mr Putin: There you go, Ukraine is represented by Sergei Terekhin, and Russia is represented by a man with surname that sounds good to the Ukrainian ear, Khristenko.

Question: A question for the President about the border. Viktor Andreevich, please give Ukraine’s position. Where do we want for it to pass across the sea, and in what time frame do we want it to pass across the sea? And a question for the Russian President: how do you assess this initiative of the Ukrainian side, and how do you think this process should be regulated, and where do you envisage the sea border? Thank you.

Mr Yushchenko: I proposed Vladimir Vladimirovich to devote 2005 to problems of regulating our borders. What does this consist of, in my opinion? The first position is to demarcate the border on the land. There are virtually no issues concerning delimitation there. And I think that in this issue we have found a mutual understanding. Issues remain of delimiting the border in the Sea of Azov and the Strait of Kerch, and to a small extent in the Black Sea, where there are no problems. We proposed the Russian side to recognise the border in the Strait of Kerch just as it was intended – as a border between republics, of a former Soviet Socialist Republic and the Krasnodar Krai, which is recorded on all maps, starting with the post-war period. That is, on this area of our neighbouring territories, a border existed, and we propose to recognise it as such. As for border delimitation on the Sea of Azov, we have proposed a compromise, which I hope the Russian side will examine and make an appropriate statement.

Mr Putin: The President, essentially, formulated the approaches of the Ukrainian side. As you know, my personal view of things has always been that if we want to build strategic relations, so that there is full trust between us, we must smooth out all the problems that can be imagined. One of them of course is border regulation. So several years ago I gave an order to the Foreign Ministry and other of our services to complete work on the land border in a short time frame. We are also, in my opinion, progressing successfully on the Azov-Kerch problem, which did not go anywhere for years, and people were even afraid to deal with this problem. Now there are certain agreements, there are basic documents which will allow us to make the next steps. But I can’t answer all your questions right now, because this is an issue which should be discussed at expert level. I am certain that if the two sides take a benevolent approach and wish to come to an agreement, these agreements will be reached.

Question: Good evening. I have a question for President Yushchenko. Viktor Andreevich, as mentioned earlier this is your second meeting with Vladimir Putin since your election as President. Please tell us, is the direction of Russian policy towards Ukraine now clear to you? And another question for President Putin. Vladimir Vladimirovich, you spoke of the reaction of ordinary Kiev citizens to your visit. But nevertheless, you spent most of the day with Ukrainian leaderships, so could you say a few words about the atmosphere at these talks? Thank you.

Mr Yushchenko: You know, I was surprised that in the list of issues that were intended for discussion today, there were no issues where we did not find mutual understanding. Our meeting lasted for a long time. I think that we talked openly about strategic issues which concern our bilateral relations. And what surprised me most of all was that when I finished my part and saw Vladimir Vladimirovich putting aside a pile of cards that we had always worked on, I noticed, Vladimir Vladimirovich, that you put most of your cards aside. This shows that we got it right, and I am satisfied with the openness, the spirit and pragmatism of our talks today. This of course has made it possible to look at many things differently, I think both for the Ukrainian side and the Russian side.

Mr Putin: My assessment is the same as my Ukrainian colleague’s. The discussion was very friendly and extremely constructive. The text that was prepared for me had the following phrase – “of course, we have different view points on certain problems.” You know, I crossed out this phrase. If you noticed, it was not spoken. Essentially, with such a large number of mutual interests and joint work, of course, there are always differing approaches to solving various problems. But today during the meetings and talks with the President, with the Prime Minister, with the head of parliament, we did not get the feeling that there were any problems in our relations. They simply do not exist. There are issues which we must solve together, which we must work on, but this is an ordinary regime of cooperation. I am satisfied with today’s meetings and talks.