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President of Russia Vladimir Putin: Good afternoon dear colleagues, ladies and gentlemen.

I am glad to be able to welcome you to what is already our 17 th Russia-EU summit. We are meeting for the first time in the south of Russia, in one of the most famous cities along the Russian Black Sea coast, and I hope that both yesterday evening and this morning you had the chance to appreciate its warm and hospitable atmosphere.

I will say at once that Russia considers the European Union its key international partner. We are working together and constructively on strengthening stability and security in Europe, providing real assistance to Europe’s economic development, and finding effective ways to solve the whole range of social, environmental and information problems. And I consider significant the fact that from year to year our cooperation becomes more and more dynamic, substantial and productive. For this reason last year we started working on the practical implementation of the four common spaces between Russia and the EU. And I believe that today we can already discuss the first concrete results of work in this really strategic area and, first and foremost, we can evaluate just how successfully the road maps we adopted are being implemented.

I will also emphasize the value of the agreements on simplifying the visa regime and readmission that have already been prepared by our experts. Signing these agreements will give an important new impulse to business initiatives, cultural and scientific ties, youth exchanges. And we can expect that both agreements will enter into force already at the end of this year. I think that you will agree with me when I say that the success of further joint work depends, first and foremost, on the effectiveness of the legal base of Russian-EU relations.

We are all well aware that in 2007 the initial term of the Partnership and Cooperation Agreement will expire. And it is in both of our interests to have an even more effective legal framework for our cooperation, one that corresponds with contemporary realities and that is designed with a long-term perspective. It is Russia’s aim to ensure that the integration taking place within the EU will also expand the fields in which Russia and the EU cooperate. And in connection with this I would like to put special emphasis on our European partners’ constructive position with respect to developing a range of important directions for cooperation, including dialogue in the energy sector.

The beginning of constructing the North European Gas Pipeline and measures to strengthen energy security on the continent are both designed to accomplish tasks to ensure progress, global and regional development, as well as attain a major goal – improving the quality of life of European citizens.

And in conclusion I would like to emphasize once again the importance of foreign policy dialogue between Russia and the European Union. I suggest that we discuss the most topical problems in detail, problems such as strengthening international stability and security, including how to normalize crisis situations in the Balkans, Middle East and a number of other regions. In practice, yesterday evening we already started discussing the range of issues that I just mentioned. I would like to thank you once again for the fact that you considered it possible not only to come to Russia but to come here, to one of the regions of the Russian Federation, to the south of Russia.

Yesterday I heard positive feedback already in the first hours of your stay. I feel that many of our colleagues were pleased. If you agree, in the future we are going to expand the number of places in which we meet so that our European colleagues and friends will better get to know our large country.

Thank you very much for your attention.

Federal Chancellor of Austria Wolfgang Schluessel: On behalf of the European Union, thank you very much Mr President. I will say that organizing this summit here, in Sochi, in the southern part of the Black Sea is very pleasant for us. This is the 17 th Russia-EU summit. Usually they say that the 17 th summit is already a routine meeting; this is not the case. Yesterday we were met with such warmth and hospitality. The discussion we had was frank and open. In essence, it was a private informal discussion. We are glad to be here and to work with you. The surroundings are unique: this is a subtropical coast, from here we can see snowy mountains and the sea at the same time. It is a special place. The beauty of the place is amazing, it should inspire us as our cooperation continues to develop. For it is not only necessary, it is what we really want. Cooperation is in both of our interests and also helps us reach a common set of values.

We read your Address [to the Federal Assembly] of 10 May and we already spoke about it yesterday. For us the most important sentence is one that I shall quote: ‘our most important partner is the European Union’. This is not an indication of the quantity of our relations but rather of their quality, the quality of our partnership. This year we established our four road maps in Moscow. The year proved that these road maps constitute a useful base for our cooperation, for improving relations between Russia and the European Union.

You mentioned the energy dialogue and this is something very important. The energy dialogue must be based on openness, reciprocity and ensuring reliable ties and deliveries of energy resources. Europe offers a good example in this respect. We have been engaged in constructive cooperation in this sector for more than 40 years. And our goal is to preserve this. The Cooperation and Partnership Council is working very successfully. In March in Moscow a session took place during which relations remained close. A few weeks ago the first session within the Russian-American-European dialogue in the field of security took place in Vienna. We shall continue these activities in our forthcoming presidency. And the fact that today we signed agreements on cooperation with respect to visa procedures and readmission shows that we are taking practical steps to improve the lives of our citizens and expand our cooperation.

Our cooperation in other issues is perhaps not as conspicuous, but equally important. For example, the Kyoto Protocol was signed two years ago, and Russia is now a key participant in this process. I am very happy that the European Research Institute is beginning a new academic year. It represents a key symbol for improving our relations and adding to our knowledge of each other. Soon we shall start working on a new agreement between the European Union and Russia to replace the current Partnership and Cooperation Agreement. However, until this new agreement enters into force the old one will continue to be valid.

This is a special year for Russia. Russia holds the G8 presidency and is chairman of the Council of Europe. The success of these organizations, like the success of our strategic partnership, is based on respecting and observing a set of common values, democratic principles, human rights and basic freedoms. And I am convinced that democracy, human rights and the rule of law are not obstacles but rather important factors in the success of our countries, regions and establishments.

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