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Transcripts   /

Responses to Questions from Russian Journalists following the Russia-EU Summit and Press Conference

May 25, 2006, Sochi

Andrei Kolesnikov (KOMMERSANT NEWSPAPER): What points did you not reach agreement on during the summit?

Vladimir Putin: I already spoke about this. I said the discussion is continuing on how to use the possibilities offered by the energy charter and its additional provisions on transit. We have never put obstacles in the way of transit. We remain committed to fulfilling all our obligations to our partners. As for work on actually implementing the charter and its additional provisions in practice, we need to settle this question as part of a greater whole. I also spoke about this at the press conference. Several years ago we were in the process of reaching an agreement on free access for our nuclear materials to European markets, but this negotiating process gradually fizzled out, and not through our initiative. Why should we be trying to settle the issues that interest our partners today and forget about our own interests? We are not against engaging in discussion on this area, but whether we reach an agreement or not we will in any event continue to meet all our obligations under our long-term contracts, and they have been concluded for 10–15 years ahead, and there should be no doubt on this point.

Andrei Kolesnikov (KOMMERSANT): There has been talk that one of the German participants could pull out of the consortium building the Northern European Gas Pipeline because they are not satisfied with the conditions. If someone can leave the consortium, does that mean that someone also can enter?

Vladimir Putin: That depends on our German partners. They can, within their participation stake in the project, invite other participants to take part in carrying out the project. This could be German companies or companies from other European countries. Of course, we would also be informed about and involved in what is going on, but we would not object to an increase in the number of participants in the project.

O.Osipov (RIA NOVOSTI): How would you describe the atmosphere at the talks, the mood in which they took place? It is no secret, after all, that European Commission representatives made some quite strongly worded statements just before the summit. This kind of stirring up feelings often happens before summits such as this or the G8 summits. What do you think is the reason for this?

Vladimir Putin: Sometimes these kinds of attempts to stir feelings are the result of a monopoly on the world’s mass media. As for the actual professional-level discussion that took place, I am very happy indeed with how it went. In general I have the very good feeling that we were speaking a common language today and that we listened to each other and understood each other. This was a professional discussion of the highest level and it took place in a very friendly atmosphere. It was a frank and open but always friendly discussion. I know that my colleagues share this view of our meeting today.

O.Boyko (RUSSIA TODAY): Do you think that the new cooperation and partnership agreement with Europe will be fundamentally different in any way to the current one?

Vladimir Putin: I think that the new basic document that will form the foundation for our relations with the European Union after 2007 should of course be different in content because our relations with the European Union have changed. The character, level and quality of our relations have all increased. The European Union’s membership has increased and there are plans for further enlargement. During this future enlargement process we very much want to be able to agree ahead of time on certain conditions regarding that participation of new members in the European Union so as to ensure that our relations with these countries, above all our economic relations, do not suffer in the process, and so that their ties with us also do not suffer as a result of their accession to the EU. Also, I hope that the negotiations on Russia’s accession to the World Trade organisation will reach their conclusion at some point, and this should also be reflected in the new document.

Finally, Mr Mandelson spoke today about the idea of beginning work on a document to create a free trade zone between Russia and the European Union. This is an interesting proposal and we will begin working together with the Europeans on this proposal outlined today by Mr Mandelson at expert level. If this idea leads to concrete decisions being taken, they too will have to be reflected in the new document that will form the foundation of our cooperation with the European Union.

A.Dubnov (VREMYA NOVOSTEI NEWSPAPER): The European Union representatives said today that the situation in Belarus, Moldova and Ukraine were among the international issues proposed for discussion. We have already heard what has been said about Ukraine, but we have heard nothing about what was said with regard to Moldova and Belarus.

Vladimir Putin: We discussed the situation in the post-Soviet area both yesterday during our working dinner and today. These matters were among the problem issues that we discussed on both days, so we did give them our attention.

A.Dubnov (VREMYA NOVOSTEI): How would you qualify this discussion?

Vladimir Putin: We discussed all the different matters.

N.Melikova (NEZAVISIMAYA GAZETA): Did you discuss the preparations for the G8 summit in St Petersburg? How are the preparations going?

Vladimir Putin: I think that Igor Shuvalov can probably fill you in more professionally and in more detail on this because he is working on it on a daily basis. What I can say overall is that the preparations for the summit are already producing results because they are enabling experts at the highest level, at ministerial level, to meet and engage in professional dialogue and find acceptable solutions to issues of importance to us all. This concerns all the issues that Russia has named as its priorities for the G8, namely, the energy dialogue, energy security, education and the fight against disease.

Of course we are discussing the international agenda during the preparations for the G8 summit. The biggest issue on the international agenda at the moment is Iran. This issue is practically never out of our sight and the very fact of the preparations for the St Petersburg summit provides us with opportunities for intensive contacts and a search for solutions.

A.Nikolayeva (VEDOMOSTI): You implied on a number of occasions today that our European partners would like to play a certain part in developing our energy sector. You said that having such ambitions has to go hand in hand with being ready to offer us something in return. Did the European representatives formulate their wishes in any concrete way? Do they seek a merger with a Russian company, for example?

Vladimir Putin: I spoke about this at the press conference. Full implementation of the energy charter and the additional provisions on transit would mean that we provide free access to oil and gas production and to the transport infrastructure. Of course we cannot help but ask what we are to get in return. And we are told that we will get the same. But as I said, where are their deposits to which they will give us access? Do they have pipeline networks of the kind that Gazprom has? No. So, we are not against the idea of doing this in the future, but we need to know what we would get in return. This is very easy to understand if you just think back to childhood when you go into the street with a sweet in your hand and another kid says, “give it to me”. And you clutch your little fist tight around it and say, “and what do I get then?” That is what we want to know – what do we get in return? We need to know if they actually have a suitable answer for us.

If you look at what is happening with BASF, for example, we have agreed to let them take part in production, and in turn they are letting us take part in the gas networks that they have. But these are not mainline pipeline systems. And this is all work being done piecemeal, so to speak. Essentially, we are carrying out in practice what is set out in the energy charter. We are putting it into practice. But in each specific case we need to be explicitly clear on what we will get in return. I repeat that we are not against the idea, but we have to agree on the reciprocal steps our partners will take. The energy sector is a key sector for Russia, though we have set the goal of diversifying our economy and developing its technological base, and so we would like to receive from our partners something that we need for our development. This is above all advanced technology, perhaps also in the energy sector. Incidentally, when we began talking about this with our partners they said, yes, let’s think together about this and look for a solution. They are also not against the idea. There are no contradictions here that cannot be resolved. There is no obstacle that could prevent us from reaching our desired result. I was quite optimistic at the press conference and I think I can say now too that I do think we will be able to settle all these issues. This is our desire and we sensed that it is also the desire of our European partners.

Aside from anything else, the issue is also about liberalising our energy market. We have already liberalised our market a lot more than many other oil and gas producing countries. Almost all our oil companies are privately owned. There are only two exceptions, and even they are joint-stock companies, albeit with state participation, but even so. The others are all in private hands and have a large amount of foreign participation. TNK BP, for example, has half and half Russian and foreign participation, Lukoil has foreign participation. This is the case practically in all our companies. Even in Gazprom our German partners are represented with a ten-percent stake. We have major world companies directly involved in oil and gas production here and the investment in this sector is already into the billions. So no one can accuse us of closing our market off, behaving selfishly and not thinking about our partners. No one is making such claims against us. I understand that people would like more, but this has to be a two-way street.

A.Kolesnichenko (ARGUMENTY I FAKTY): Do you think it would be possible to abolish visas entirely between Russia and the European Union before the Olympic Games? After all, if Sochi wins the contest to hold the [2014] Olympics, we won’t be able to issue so many visas to all the people who will come.

Vladimir Putin: I would like this to happen, but we have to all keep in mind that a considerable part of the work in this respect is Russia’s own responsibility.

May 25, 2006, Sochi