Official website of the President of Russia

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Vladimir Putin: Dear ladies and gentlemen.

Today in Sochi we held the 17th Russia-EU summit. And first of all I would like to thank my colleagues, the heads of the European Union and the European Commission, for their interested approach to all the issues we discussed.

I will say at once that we highly value the results of the Sochi summit. It will be remembered not only as a frank exchange of opinions with our partners but also because we achieved concrete results.

First and foremost I am referring to the agreements we signed with respect to simplifying the visa regime and readmission, agreements that we expect will enter into force by the end of this year.

From the very beginning students, journalists, businessmen, cultural figures, academics and athletes will be able to use this simplified regime for receiving visas. But this decision is the first step to introducing a completely visa-free regime for Russian and EU citizens.

I am confident that the entry into force of new and simpler visa rules will be a fast and effective stimulus for expanding cooperation in the cultural and educational spheres, for joint work and dialogue between artists, scientists, youth and students.

The day before the summit we solved the issue of signing a TACIS programme for Russia in 2005–2007 and a European Union programme in the northern Caucasus. This will give the European Union the opportunity to participate in the region’s social and economic development.

One more important event that took place over these days is that yesterday in Brussels we initialed the Agreement on the International Thermonuclear Experimental Reactor. It is a good example of cooperation in the field of science.

We paid close attention to strengthening the legal basis of the Russia-EU partnership. As you know in 2007 the initial ten-year term of the Partnership and Cooperation Agreement will expire. In its time this document helped us take important steps towards one another. But in order to proceed further we must develop an up-to-date and modern legal base for our relations, a base that will be effective in helping us develop all the areas in which we cooperate.

Russia is ready for such work. We also hope that the European Commission will soon receive a mandate for negotiating this question. After this we can begin an official dialogue between our countries’ experts.

Issues concerning the expansion of the European Union remain topical as ever. We once again drew our colleagues’ attention to the necessity of respecting the provisions of the Joint Declaration adopted in Luxembourg in 2004.

During the summit we also discussed crucial international problems including the situation in the Middle East, the situation with respect to the Iranian nuclear programme, and the situation in the Balkans.

The results of the discussion confirmed that Russia’s and the European Union’s approaches to resolving the majority of European and global problems are in harmony or coincide, and this undoubtedly constitutes a good basis for even more effective cooperation in increasing security in Europe and in the world.

In conclusion allow me to once again thank my colleagues for a dialogue that was constructive, very frank and useful for both parties.

I am confident that the Sochi summit that just took place will help implement our joint plans and in general help develop the whole range of relations between Russia and the European Union.

Thank you for your attention.

Wolfgang Schuessel (Translated from Russian): Thank you very much, Mr President. This is our seventeenth summit and some said it would just be a routine event. But this was not the case. This has been a unique summit. In the past we have usually met in Brussels, Moscow or St Petersburg, but this time we met in Sochi and this created a completely different atmosphere. We had a lot of time for discussion. I looked at my watch and saw that we spent more than ten hours in positive, lively and fruitful discussion, sometimes agreeing and sometimes not. I found it a very positive experience indeed to see the reaction of our Russian friends. For your part, Mr President, you have a very well-prepared team here – Prime Minister Fradkov, all the ministers, officials from the Presidential Executive Office.

In your federal address you said that the European Union is one of Russia’s biggest partners, and not just in the economic sphere, though our economic relations are certainly worth noting because we have a balance of 160 billion euros in favour of Russia at a coefficient of two to one, from the point of view of imports, and direct foreign investment in Russia totalling 80 billion euros. But our relations are indeed not based only on economic interests, trade ties and mutual benefits, but this is, one can say a strategic dialogue and a strategic relationship. It was this that in my view was at the centre of our discussions yesterday evening and today.

We discussed the roadmaps for the four different dimensions. They form a very important instrument for developing common cooperation mechanisms. The four dimensions in question are those of security, the economy, the environment and humanitarian cooperation. All of these issues are of great importance. We achieved good progress in a number of areas today. President Putin has already mentioned the documents signed. You saw that we signed very important agreements on readmission and on simplifying visa procedures. We also examined concrete possibilities for cooperation in key areas in the energy sector and this was probably the most important part of our discussions this morning.

A lot has been written about differences of opinion in this area. But let’s make one thing very clear: buying and selling oil and gas is a purely commercial activity; it is not politics. It is a mechanism regulated by supply and demand. Both parties depend on the successful continuation of this business and these relations. We depend on Russia, on energy supplies from Russia. Russia has been a stable and reliable partner for forty years now. At the same time, Europe is a valuable partner for Russia. We pay in hard currency and this is a situation in which all can benefit.

We discussed future developments in European energy policy. I think that the contacts between [EU Energy Commissioner] Piebalgs and Minister Bartenstein, and Mr Khristenko on the Russian side give us hope for positive development in this area.

We are just as keen as Russia is to avoid misunderstandings and to develop our cooperation on the basis of transparency, market principles, non-discrimination, predictability, economic and environmental cooperation and investment security. This is particularly true in respect of providing guarantees for investment. Both sides stand to benefit from continued cooperation, developing new technology, protecting the environment and creating new energy sources. We have agreed to closer cooperation in implementing the Kyoto Protocol. We have also agreed with President Putin that our Partnership and Cooperation Agreement should be transformed into a new instrument fully reflecting the level and quality of our relations. Talks on the new agreement could begin at the end of the year – after accession to the WTO.

As you rightly said, Mr President, we also discussed foreign policy matters. Both sides are seriously concerned by the situation in Iran. Despite the constructive proposals made to Iran by Russia and the European Union we are still a long way from an agreement that would ensure that Iran does not obtain a nuclear weapon. The European Union and Russia share the common goal of seeking a peaceful and diplomatic solution to this issue. The Middle East also figured prominently in our talks. The issue here is how to help the Palestinian people. Both sides wish to help. What we now need to do is create a new mechanism that will enable us to help the Palestinian people and President Abbas.

Regarding human rights, it is important to note that Russia now holds the presidency of the Council of Europe and is very conscious of the responsibility this office carries, especially in the area of human rights. The Human Rights Commissioner’s last visit was positive indeed. Both sides agreed that in our view democracy, human rights and the rule of law are not obstacles of any kind, but are, on the contrary, an integral part of and conditions for success.

In conclusion, let me say once more, Mr President, that these have been very positive and inspiring talks. I am sad that they are over, but our work continues and we will be looking forward to future visits. There are forty different groups and commissions now continuing the cooperation work between Russia and the Council of Europe and the European Commission.

Thank you once again.

Jose Manuel Barroso (Translated from Russian): Thank you.

First of all, I would like to thank you for the warm hospitality we have received here in Sochi. This summit in Sochi has been a good meeting, a concrete meeting that has produced very positive results. We have carried on a very open dialogue over these two days and this confirms the character of our relations as neighbours and partners with global responsibility.

We have made good progress in some areas. The most tangible evidence of this is the agreements on simplifying visa procedures and readmission that were signed at the summit today. These agreements characterise our relations and highlight the fact that they are in the interests of the peoples of Russia and the European Union.

I think we still have more work ahead of us and this is why we agreed today to move towards even more ambitious objectives and to create a legal base for the future. We discussed a number of aspects regarding this issue, in particular how to deepen our economic cooperation in the context of the future legal base. Both sides have immense potential when it comes to economic relations, trade, investment and economic cooperation. We agreed to continue work on these ideas, ideas that we discussed very openly and frankly during our meeting.

Energy is of course a very important issue and one that we discussed today. This is one of the cornerstones of our relations. We had a very good exchange of views on this subject. We are conscious of our interdependence and our common interests and this was highlighted during the talks. We concluded that we must intensify the energy dialogue, deepen our mutual understanding and work on the basis of common principles — the principles of openness, transparency, reciprocity and market economy principles. All of this rests, of course, on the idea that our countries are interdependent.

I want to point out that energy is high on the agenda for the G8 during the Russian presidency and it is an area in which Russia and the European Union can and should demonstrate their commitment to proving themselves worthy of their responsibilities as global partners. I hope that, together, we will come to an agreement based on common principles in this area in St Petersburg.

As global partners we discussed many different issues, global issues. I wish only to stress that I am very grateful for the discussion that we had on Iran in particular. It is extremely important that the European Union and Russia combine their efforts to settle the current crisis.

In conclusion, I see the Sochi summit as evidence that our relations have matured and that this shows our common desire to continue moving forward in developing our partnership, not only as neighbours but also as global partners who consider themselves jointly responsible for resolving global issues.

A.Meshkov (INTERFAX): My first question is for the European Union representatives. You spoke a lot about the European dialogue taking place at this meeting. Regrettably, however, we’ve been hearing a lot lately from European Union officials and in the European press about how Europe should not be allowed to become dependent on Russian energy supplies and about how Russia is using energy to put pressure on its partners. This creates the impression that the EU would like to consider Russia’s energy resources its own. Perhaps this is a false impression, but there is this sense that you seek talks with Moscow in order to draw up rules that would provide for freer use of these resources.

And a question for the Russian President: In your view is Russia not going against its long-term interests by agreeing to its European colleagues’ demands and increasing energy production and supplies? Are there not plans to cut back energy production given the objective of promoting innovation-based development of the Russian economy?

Jose Barroso (Translated from Russian): This question offers an opportune moment to clarify that we had a very open and frank discussion on energy issues today. We in the European Union think that we should hold just such discussions with our Russian partners, with President Putin.

The energy sector is a very sensitive matter at the moment. It is a very sensitive issue for Europe and for the entire world. This is for understandable reasons. Maybe not today, but in the future, the gap between supply and demand could become a serious problem. What I want to stress in this respect is that as we see it, this is not a problem of lack of confidence in Russia as a reliable supplier. Russia has always been a reliable supplier.

But the issue is nonetheless a sensitive one and the public reacts to it. Let’s be frank here, public opinion in Europe did react to the problems that arose between Russia and Ukraine at the beginning of the year. Of course we do not consider Russia’s resources as our own resources. Our aim is to build relations based on the principles that Chancellor Schuessel and I have outlined. Above all, this concerns recognition of the principle of interdependence. Consumers need the supplier, but the supplier also needs the consumers. This is a key aspect of interdependence.

We also seek to ensure reciprocity and transparency in our relations. These are the matters that we discussed in such an open and candid spirit. One of the conclusions that we reached was that this positive dialogue must continue, in particular between the Russian energy minister and the European Commission officials responsible for energy and the President of the European Union. This work is continuing and we expect to keep making progress.

In my personal capacity I would like to note that this open approach was one of the most important aspects of today’s dialogue. I said quite honestly that we did not reach agreement on all the matters we discussed. There are a number of issues on which we must continue our work. But I think that we can reach an agreement on the basic principles, at least on the principles that, as I see it, should become the foundation for the relations of trust and cooperation between Russia and the European Union. I think that these relations will develop into a very comprehensive partnership, which we are currently trying to strengthen, including in the energy sector. Energy is a very important part of our cooperation with our Russian partners.

Vladimir Putin: You all know that when it comes to looking after one’s own interests, economic interests all the more so, the actors on the international stage very often follow the popular wisdom of charity beginning at home.

But I can assure you that no one is laying claim to our assets and nor are we about to give them up. Given the high level of relations between the European Union and the Russian Federation we have excellent opportunities to develop our ties harmoniously and to the benefit of both Russia and its European partners.

Russia has always been and always will be a reliable partner for our European colleagues. Just as we have done and are doing today, we will continue to develop our possibilities in the energy sector and we will take our resources to the world markets, including in Europe. We will diversify the markets for our products. This in no way contradicts our plans to change the structure of our economy and to give it a more innovative character. Moreover, we are interested in developing our relations with the European Union in all different areas and we spoke openly about this today. We spoke openly about the fact that if our European partners want us to let them into the holy of holies of our economy, namely the energy sector, and if we do this as many would like it to be done, then we expect something in return regarding the most critical and important areas of our development. I very much had the impression that our colleagues heard and understood this message and I know that we will find a common language.

S.Scholl (CORRESPONDENT FOR AUSTRIA TV AND RADIO COMPANY ORF, translated from Russian): My question is for President Putin. What further plans do you have for energy cooperation with Europe? And how do you plan to develop cooperation with China?

Vladimir Putin: As I said, we had a frank and very substantial discussion on energy issues. I want to point out that artificially cultivating rumours about problems in energy sector relations with the Russian Federation harms not so much us as it does those who spread these rumours.

For more than forty years now Russia has consistently fulfilled its obligations to its European partners in full and to the day and minute. Name me even one case when Russia has not delivered promised supplies to Europe, to its European partners.

Regarding oil supplies, we work through the international, world markets. We are increasing oil production every year and make a considerable contribution to resolving the world’s energy problems.

We spoke today about uniting our efforts in the electricity sector and in the nuclear energy sector. We have supplied and will continue to supply natural gas. There are no problems here, especially at the professional level. We work on the basis of long-term contracts concluded for periods of 10–15 years. This creates stable conditions for the development of Europe’s economy and offers it competitive conditions in the energy sector.

I would like to point out that last winter under these long-term contracts European consumers were receiving gas at a price of $250 per 1,000 cubic metres. On the spot market, on the free market in Europe, the price was at $1,000 per 1,000 cubic metres and in Britain the price reached $1,300 and more for 1,000 cubic metres. I think therefore that there are no problems in this area. What our discussion is about is how to build our future relations. In this respect I can but repeat what I said to our partners. We have no secrets from the public here. If our partners hope for some kind of exclusive relations and want us to put in place a resolutely liberal policy regarding access to infrastructure, production and transportation, then this raises the question on our side of what do we get in return?

Perhaps we could also gain access to infrastructure, production and transportation, but of what kind? Where is your production? Which deposits will you give us access to? What mainline pipelines do you have? If you cannot offer us these things, and you cannot, then we have to find another acceptable form of compensation and take steps to respond to each other’s interests. This is the message that our colleagues heard and understood today.

Regarding the charter there are also no problems that cannot be settled. Five years ago we agreed that we would work on the basis of a charter, a charter that would also give us access to European markets for our nuclear materials. We have not yet reached an agreement on this point and why then should we have already reached agreements on other points that are of interest above all to our partners?

But what is most important is that we do want to reach agreements on these issues and we are working towards this.

Y.Grigoryeva (IZVESTIA NEWSPAPER): Montenegro has just held a referendum on independence, a referendum for which the EU set a 50-percent barrier. My question is above all for the EU representatives. Do you think that the mechanism illustrated by the referendum in Montenegro could be applied to parts of the former Soviet Union? I would like to hear a ‘yes’ or a ‘no’ from you. I would also like to hear the views of the Russian President.

Wolfgang Schuessel (Translated from Russian): Above all, Montenegro is a success story and a good example of a carefully planned joint decision. Both sides, Belgrade and Podgorica agreed on the principles, with the mediation of Javier Solana and other neighbours, including Russia, which played a very constructive role. The principles were that there had to be participation of at least 50 percent and a result of at least 55 percent. In the end participation was very high – more than 90 percent – and more than 55 percent voted in favour of independence.

This is a good example of coordinated decisions leading to a democratic settlement. Also, this process was supported and monitored by the European Union. Do not forget that this was one of the priorities for the Austrian presidency. We are holding the door open to all the Balkan countries. We have always spoken of the possibility of European Union membership for the Balkan countries. This is the only positive motive and the only thing that helps ease the tension in this situation. It is an incentive for improving the situation in Macedonia, Croatia, Albania and Serbia.

We hope that this possibility will become more real once some problems connected with cooperation with The Hague are resolved. The main thing, though, is that this decision was agreed and coordinated.

This cannot be seen as a universal example, a universal standard. It was based on history and was a coordinated process. If we start looking at history we have to decide how far we are willing to go in this direction because there are different situations. What we need is flexibility and pragmatism. The way I see it, this decision regarding Montenegro and Serbia is a pragmatic decision. We thank you for your positive contribution to resolving this situation and for the interest you have taken in finding a solution.

Vladimir Putin: I agree that we need to take into account a great number of historical, political and cultural factors. There are many such factors to consider when resolving problems of this kind. But at the same time I think that we should concentrate our efforts above all on drawing up standardised instruments for settling these kinds of issues. We should strive towards developing together a set of common principles that can be applied to all the actors in the international community. Only then will we be able to achieve stability and make the architecture of international relations more stable in this and perhaps also in the next century.

By the way, do forgive me, I did not answer the question that was addressed to me about China. I simply forgot.

We do not see the People’s Republic of China as an alternative to the European market. China is a country undergoing very rapid development and it is a huge consumer of energy resources. We are a producer of energy resources and of course we will seek to build partnerships on the world markets that fully comply with our economic interests. I hope that within the framework of competition we will find optimum solutions.

Incidentally, our energy production and transportation sector is considerably more liberal than in many other energy producing countries. With the exception of two companies practically all our oil companies are fully privately-owned and almost all of them have foreign participation. We have a large number of independent producers of natural gas. During our discussions with our colleagues before, I informed them that I hope that by the end of the year the State Duma will pass a law under which a considerable amount of the regulatory functions in this sector will be shifted from administrative to civil-law jurisdiction.

Jeffrey Mason (REUTERS, translated from Russian): [U.S.] Vice President Dick Cheney recently criticised Russia for blackmailing its neighbours using energy resources. Mr Barroso, do you agree with this threat? Did you speak about this threat and what it reflects? What is the difference between Russia’s relations with the EU and Russia’s relations with the United States?

And President Putin, could you please comment on Dick Cheney’s remarks and on the state of relations with the U.S.?

Jose Barroso (Translated from Russian): First of all, I would like to say that we spent a very pleasant evening yesterday and we had an excellent dinner. We dined against a backdrop of the sun setting over the Black Sea and we listened to wonderful music, in particular, enjoying a performance of Gershwin’s Rhapsody in Blue.

The sea, the sun, the music, everything was wonderful. Our relations with Russia are as we have just described them – based on an open dialogue, even with regard to the most complicated issues. I am not saying that we agree on everything. But what do we mean when we say that we seek a close partnership with Russia? We must not forget that Russia is a European country, an important global power and our neighbour. We are therefore committed to a very close partnership with Russia, and within this partnership we discuss all manner of different issues, including human rights, democracy and energy issues. This does not mean that we always agree, but I can say to you quite honestly that at this summit – and I have taken part in several – what I saw was a spirit of openness and an attempt to understand each other’s position, and this is something to be welcomed. As we in the European Union see it, we must work in close cooperation with our Russian partners.

Vladimir Putin: I don’t even know what to say in answer to the question you have put to me. As far as our relations with the United States go, they are one of our major partners and we value our deepening relations with this country. I am sure that there are many political forces in the United States that feel the same way about developing relations with the Russian Federation.

The United States is an important partner for us in the economic sphere, in disarmament and in the non-proliferation of nuclear weapons and their components, missiles and so on.

There are many other areas, including the fight against terrorism, where nothing can replace the partnership between Russia and the United States.

I am sure that a large number of our American partners, including the President of the United States, share these views.

Concerning our relations with other countries, we will discuss these relations above all directly with these countries. We see how the United States defends its interests. We see what methods and means it uses. In our efforts to look after our own interests we also seek the most acceptable methods for resolving our national objectives. I find it strange that this can meet with misunderstanding.

But I am even more surprised by something else. If our Ukrainian partners through the mouth of their President say that they are satisfied with the energy sector agreements they have reached with the Russian Federation and consider the signature of the corresponding gas agreements not just acceptable but the only correct decision, then how can the leaders of other countries decide what is good or bad for the Ukrainians themselves? It is hard for me to work out exactly who is even being criticised here — Russia or the Ukrainian leadership? But to answer that question you would have to ask those who make such comments in the first place.

Thank you ladies and gentlemen, I very much hope that all of our friends and colleagues, all our partners and the members of the press have enjoyed Sochi. I very much hope that you will all get involved in the work to promote Sochi as the host city for the 2014 Olympic Games.

Thank you to everyone and I wish you all the very best.