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
Script of the early part of the meeting:
Vladimir Putin: Good afternoon, Ms Tymoshenko, I am very glad to see you.
Although we met recently, this meeting is also very important. I'm referring to the high volume of trade and other economic ties between our countries and the need to resolve issues that arise in the process, especially energy issues, but other issues as well.
Last time we met, we also discussed the problems hindering our trade and economic contacts. New issues have arisen since then. Some are linked to Ukraine's accession to the World Trade Organisation, which we also view as a necessary and an appropriate decision. We in Russia haven't taken WTO accession off our agenda either.
Yet, as a long-time professional in economic and social issues, you must realise that some problems will certainly arise. They involve the varying levels of tariff regulation. Our experts estimate that Ukraine's tariff policy after its WTO accession is becoming much more liberal than Russia's.
We expect certain categories of products to be replaced in the Ukrainian market by cheaper items imported from other countries. Falling domestic demand can send those Ukrainian goods to the Russian market instead: I am referring here to our trade and economic agreements and the free trade agreement which is still in place, albeit with exceptions. We estimate that the value of the Ukrainian goods in question may total $5 billion, which is quite a lot for us.
I would like us to review these problems today, to study them slowly and thoroughly, and to try to find ways around this situation so as not to harm our economic ties and bilateral relations in general.
It should be admitted that, instead of being held in an improving political environment, this meeting still comes amid a rather complicated situation. This is the result of some uncertainty about decisions because of the current domestic political situation in Ukraine. Agreements reached somehow carry a huge question mark on the side, meaning we are uncertain about the integrity of agreements in the short term.
Nevertheless, let us proceed from the assumption that crucial decisions won't be revised once we reach them, because they are vital for the people of Ukraine and for Russia's economy as well.
This meeting also comes amid the repercussions of the recent conflict in the Caucasus. We find it deeply regrettable that Ukraine should find it appropriate to supply weapons to the conflict area. It was an emergency, a unique situation requiring special handling - as a rule, governments behave with more restraint in such circumstances.
But I do not want to go into that now, as I do not want these problems to get in the way of our work on economic issues. I suggest we work on economic, especially energy-related issues, considering the approaching winter.
We need to make key decisions on fuel supplies to Ukraine as soon as possible. I refer to the very difficult and complicated dialogue with our Central Asian partners.
In any case, your visit is very important today. We are glad to see you. Welcome!
Yulia Tymoshenko: Thank you very much, Mr Putin.
I am also happy that we have a chance to meet in Moscow today to discuss these key issues. I would like to repeat that Russia is Ukraine's strategic partner of the highest priority, because you have an absolutely record trade turnover with Ukraine, none of our other partners is even anywhere close to your level.
Therefore, we are naturally interested in having friendly and mutually beneficial relations, in overcoming, step by step, all the difficult issues which are bound to arise between any partner countries.
I believe we'll be able to show enough wisdom and sense of responsibility for our peoples. I would like to spell out my position here as clearly as possible, and I can tell you that my position will remain unchanged.
I have certainly followed the latest complicated developments in Georgia and you must know that we whole-heartedly support an early, peaceful settlement of this conflict. We want peace and stability there as soon as possible, and I believe you are as interested in it as we are.
As for our energy issues, I'd like to say that autumn has come. Autumn is the time when diseases exacerbate, but I think we have a good chance of reaching a strategic agreement. We are ready to agree on market prices - on a gradual harmonisation of costs in the market. I believe this can lay a solid foundation for new relations which won't be subject to any stress. It is something Europe needs, and Russia and Ukraine too.
This is what I hope will come of our talks today. We need an agreement for today and for the future. I am also happy that we met today, because I agree that many issues have accumulated since our last meeting, as part of the Committee. These are issues we still need to discuss.
Vladimir Putin: Our energy experts have done a very good job in a very short time, both at the ministerial and corporate levels. We now have a solid basis to support our new relationship, both for next year and for the long term. Let us discuss it in more detail now.
The transcript of Vladimir Putin and Yulia Tymoshenko's remarks at the expanded governmental negotiations
Vladimir Putin: I would like to greet once again all colleagues attending this meeting.
We have been speaking with Ms Tymoshenko on energy issues for quite a while and have reached acceptable agreements on cooperation in energy sector.
We have agreed to sign - and our colleagues will now finalize it - an intergovernmental memorandum on cooperation in the gas sector which may serve as the basis for corporate agreements between Gazprom and Naftogaz of Ukraine.
I would like to mention that despite this, Russia and Ukraine have been facing certain problems in their political relations, which we are well aware of and which we certainly regret.
Yet, despite our political differences and certain problems linked with the current global financial crisis, the trade turnover between the two countries is growing considerably, with this year's volume up 54% over last year and totaling more than $25 billion, which is a good indicator.
Currently, we are planning the next meeting of the Economic Cooperation Committee. In this regard, I would like to note that we should pay more attention to the issues related to Ukraine's joining the World Trade Organization.
According to the Ukraine's agreements with its WTO partners, Ukraine can receive a large volume of goods exported by other countries for lower prices to substitute a certain volume of goods on its domestic market. This volume, which we estimate at about $5 billion, could go to Russia's customs territory. These are preliminary estimations, and we will have to be more specific about our future relationship.
The collaboration between our countries is not restricted to the energy sector or WTO issues. If any of the meeting participants have any comments or ideas on organizing our further cooperative work, we will gladly hear them at our meeting.
Yulia Timoshenko: First, I would like to elaborate on the priorities we have set ourselves concerning our bilateral cooperation. This includes 11 priority fields. This is very important as we have a good dialogue and fruitful cooperation, and the results are obvious. The trade turnover increase of 54% you have mentioned is an exceptional result, the biggest trade growth Ukraine has ever had with any other country.
This is why I think we should build and develop relations in the right way, including after Ukraine joins the WTO.
I would like to emphasize again that Ukraine will assist in any possible way and will not hinder Russia's accession to the WTO. We will support Russia and make every effort for Russia to also become a WTO member.
Currently, Ukraine is doing a great amount of work to prevent goods from illegally entering our market. We have launched a very effective anti-smuggling programme "Stop the Contraband" that has changed the whole system of customs control and export-import operations in Ukraine. As a result, the revenue to our budget increased two-fold, while the volume of goods remains the same. This is due to the legalization of foreign-trade operations and establishment of real customs values for adequate taxation.
In previous years, unfortunately, the Ukrainian border was not properly controlled, with goods illegally entering both Ukraine and Russia. We have drastically enhanced customs control on our borders to discourage smuggling, which I suppose will affect Russia as well. This has already resulted in an increase in production in many sectors in Ukraine, the gross domestic product showing a 7.1% growth rate.
I would like to thank our team for the efficient work being implemented in these priority fields. We have mapped out our cooperation in the space-launch efforts and keep to the agreed deadlines. I consider the results of our joint work highly satisfactory.
We are also negotiating collaboration in aircraft engineering. Present at this meeting is Ukraine's Minister of Industry, who is taking steps towards joining our efforts with Russia's in this sphere and effectively win the niche in the market which deservingly belongs to both our countries. This must be done.
I will not take the time to mention the other fields of mutual cooperation as the ministers, who are present at the meeting, can elaborate on this. Yet I would like to emphasize that the countries, including the European Union members, expect us to reach reasonable and well-balanced agreements on natural gas supplies to both Europe and Ukraine.
The fact that we have been discussing Russia-Ukraine cooperation for so long shows that such collaboration can be put on a sound basis and further developed to mutual benefit. It is very important that we have reached agreements on our approach to price policy, gas transit and costs, and specified the projects concerning extra gas available in Ukraine and kept in underground storages. It is important that we reached accords on joint exports of such gas.
These and other agreements reveal that our cooperation in supplying natural gas to Ukraine and gas transits to European countries can be stable and efficient, bringing stability to all the countries involved. I would like to thank you for the negotiations held and the agreements reached.
