VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon, Mr President,
It is my pleasure to meet with you in third-party countries, and not just in Ukraine and Russia. We are taking advantage of every opportunity to compare notes and map out our next steps together.
Indeed, our bilateral relations have changed drastically since you became president of Ukraine. There has been a qualitative change in relations between Russia and Ukraine. In fact, they are developing into a strategic partnership.
I am not going to dwell on acute events such as the ratification of the agreement on the Russian fleet in Sevastopol right now. My point is that it is important here, in Istanbul, that we have an opportunity to discuss measures of building trust in Eurasia. It's clear that the presence of the Russian fleet in the Black Sea region and cooperation between our armed forces, our security services' joint counterterrorist, counter-narcotics and counter-piracy efforts contribute to Eurasian stability.
But I repeat, even this is not the most important issue. The main thing is that we're building a specific environment that I hope will help us to address the challenging economic and social issues we face.
Ukraine has been a long-time advocate for a new agreement for the free trade zone. We're happy that our Ukrainian partners have shown such willingness to increase integration through the Customs Union and the common economic space that Russia, Kazakhstan and Belarus are creating. As for the free trade zone, we have only one document to regulate it, which is only one page long and was signed in 1992. Much has changed since then, and we agree with you that we need to move forward. If you believe that free trade zones should be the first step on this path, Russia is ready to start developing comprehensive rules and regulations for these free trade zones.
Viktor Yanukovych: Thank you, Mr Prime Minister. You and I have discussed relations between Russia and Ukraine on several occasions, and we both agree that we need to turn these relations into a strategic partnership, that is fill them with meaningful content.
The governments and departmental sub-commissions of our two countries are currently considering many different projects, and this work will be finished soon. This means that very soon we will start cooperating in a number of areas where neither Russia nor Ukraine can accomplish as much alone as they could together.
We can work together to produce all kinds of advanced and complex machinery, aircraft, spacecraft and watercraft for peaceful and military purposes. And this is very important, because our production facilities are equipped well enough to cooperate together to manufacture high-quality, competitive machinery, which both Ukraine and Russia need and which they could sell to third-party countries. Our interests coincide here, especially now, during the economic crisis, which our industry and business have felt very acutely.
President Medvedev and I recently attended a business forum in Kiev, the first such event in the past five years. Our business and industry sent a clear message: they are ready to work, and have the vision to do what they need to do. Several speakers said that the most important thing is to ensure that there are no obstacles for them, and that government policies are beneficial. By and large, we need to do away with politicking and attend to the real economy, which is what will bring good results. We're absolutely confident of this.
Now I'd like to touch on some more specific issues. We've discussed in great detail the construction of a bridge to connect Kerch with the Caucasus. This transport corridor will allow us to resolve transport infrastructure issues for both Ukraine and Russia. This means a road from Europe to Sochi and the Winter Olympics. And not only the Olympics, but the Caucasus region as a whole. We believe that Russia and Ukraine will be able to implement this project by the 2014 Olympics.
If we make some practical decisions on this issue... technically, it has already been approved; we agreed on it, confirming it in the joint protocol... But practical measures depend on the decisions of the governments of Russia and Ukraine. I'd like to ask you to speed up this process.
The next issue I'd like to discuss... You know, this is a very sensitive issue for Ukrainian shipbuilding companies, especially those in the city of Mykolaiv, notably Shipyard 61 (officially called the 61 Communards Shipyard)...
Vladimir Putin: Are you referring to the cruiser?
Viktor Yanukovych: Yes, I am talking about the Ukraina missile cruiser. I appreciate your decision to assist us in finishing its construction, yet we need more concrete steps. Our military departments have prepared a final proposal with an estimated cost of $70 to $75 million. The Ukraina has to be completed. This is the second specific project.
The third joint project, which we started back in 2003 and 2004, is the construction of the Antonov An-70 military transport aircraft. Here, too, we are in the final stages; we have finished almost all the tests. We could start serial production by the end of the year. These are the three specific projects.
Needless to say, I believe we have to join our efforts in manufacturing the An-series aircraft, such as the Antonov An-140, the Antonov An-148 and the 95-seat An-158, which we have already gotten off the ground and into the air. Certification testing is currently underway. It's an excellent piece of machinery. It's one of the best in the world, with top-notch specifications: excellent airframe, good jet engines and the flight range of 5,000 kilometres. It's a good plane.
Other projects involve shipbuilding, aircraft construction and, of course, space. I have just met with Nursultan Nazarbayev and informed him of my upcoming meeting with you.
And of course, we should work to build on joint projects that have previously brought Russia and Ukraine together. Given that demand is high both for us and in other countries, the Dnepr and Zenit carrier rockets are still competitive today, and some minor upgrades will allow these projects to continue.
I still haven't mentioned joint energy projects, which are very relevant today. We appreciate your and President Dmitry Medvedev's efforts to help Ukraine solve the very sensitive issue of natural gas prices. This is a serious issue, and the solution you provided allowed us to balance this year's budget and the budget for our oil and gas sector, which has stopped taking loans and is now supporting itself with its own earnings. And this is the first time this has happened in many years, thanks solely to the decision you made.
The issue is still pressing, and so we would like you to view Ukraine as a partner, while we are ready to view Russia as a partner in both gas transport and consumption as well as joint gas production. We are willing to exchange some assets with Russia in order to begin a joint partnership whereby we would be involved in oil and natural gas production in Russia. Ukraine has the following possibilities: suppose we took you on as a partner in producing oil and natural gas on the Black Sea shelf. This is of great interest to us; we are aware that you have vast experience in implementing such projects. Another area of interest is nuclear power, which we simply cannot move forward in without extensive partnership with Russia.
Current negotiations with our officials to discuss the possibility of Ukraine becoming a shareholder in a nuclear fuel production facility in Angarsk open up new opportunities for resolving joint issues with Russia and Kazakhstan over the construction of a production facility in Ukraine, which could provide nuclear fuel to both Ukraine and Europe. This project is of interest to us as well.
And of course, so is the construction of two new reactors for the Khmelnitsky and the Rivne nuclear power plants, which we need very badly right now. We would also like Russian banks to provide loans to build these facilities. We are currently holding negotiations, and I would like you to support the project in your capacity as prime minister.
Vladimir Putin: Mr Yanukovych, first of all, trade between our countries is growing: in the first quarter of the year it has doubled compared to the same period last year. This is a very good sign that shows are economies our recovering.
As regards the projects you mentioned, the one concerning construction of the Antonov An-70 aircraft is almost finalised. There are some organisational and financial issues to work out, but overall the project is nearly completed.
The bridge is a good project, but it requires a feasibility study. Attempts to study this issued date back to Soviet times, when there were some technical problems that required further investigation. But I think you are absolutely right in saying that this is a promising, important and necessary project.
As regards the Ukraina missile cruiser, this is a more complicated project, as it is not clear which shipyard can be used to finish the vessel. The shipyard in Mykolaiv has to be thoroughly modernised to be able to finish this vessel, otherwise, the vessel has to be transported to Severodvinsk to be completed. Both options are complicated and expensive. Yet, I am aware of your position and proposal, and we will consider the issue.
Viktor Yanukovych: Thank you.
