Vladimir Kuzmin, Pierre Sidibe
President Dmitry Medvedev discussed two upcoming summits with Italian Prime Minister Silvio Berlusconi
It is no accident that the first foreign leader who came to Moscow after Mr Medvedev delivered his address to the Federal Assembly was Italy's Prime Minister Silvio Berlusconi.
The Russian leader's tough anti-American rhetoric and his promise to deploy the Iskander missiles in the Kaliningrad Region aggravated the already complicated relations with the United States. At the same time, they forced Russia to seek closer links with its European partners, especially since Italy will assume the presidency of the G8 next year.
Italy has been one of Moscow's most understanding partners for many years. This was true of the relationship between former President Vladimir Putin and Prime Minister Silvio Berlusconi, and it looks like it will be the same under President Medvedev. In any case, the Italian Prime Minister behaved yesterday as if he was an old friend of the Russian leader, and it was the first time Moscow had received such strong political support from Europe.
The agenda of the Russian-Italian talks was dominated by several pressing problems: first, the world financial crisis and the preparation for the G20 summit on that subject; second, relations between Russia and the European Union, which have yet to sign a new framework agreement on partnership and cooperation. Russia sees no obstacles to active negotiations on a new PCA today, nor does Prime Minister Berlusconi.
"There are no obstacles on our side for the development of relations with the European Union, Mr Medvedev stressed after the talks. "We do not exaggerate the importance of the agreement, but we would like to move forward towards a fully-fledged legal framework."
It is true that the Russian leaders understand why Europe has set up barriers before negotiations on a new PCA: it is all over tiny South Ossetia, which was attacked by Georgia. The Russian leader admitted that there had been a fallout and that a massive peace-making effort was required, noting the contributions of the French President and the Italian Prime Minister.
"At the same time, I believe that it is time to turn the page," the Russian President said. "We must tell the truth about what happened, but it need not affect the relations between Russia and the European Union."
He thanked the Italian Prime Minister for his balanced position during the South Ossetian conflict, saying that it set an example to the rest of the world. In truth, Mr Berlusconi's position was not balanced but openly pro-Russian. He did not mention, as did many of his colleagues, the need to pull back Russian troops from Georgian territory, or Moscow's disproportionate response to Tbilisi's actions. Mr Berlusconi simply urged Europe to hear the truth.
"I would like the citizens and the world to know the facts about what led to the conflict," the Italian Prime Minister said. "EU citizens must understand what actually happened."
Mr Berlusconi is ready to continue to act as a broker, this time between Russia and the US, where a young generation of politicians has come to power that will have to defuse the tensions that have arisen between the two countries in recent years.
"I told the President that Barack Obama has all it takes to reach an agreement," Mr Berlusconi said after his talk with Mr Medvedev and, in his usual way, struck a humorous note. "He is young, handsome and even has a good tan, so I think one can do good business with him. As for me, as his senior in terms of age and the role that international politicians play, I will try my best to contribute my experience and ability to unite people so that the relations between the US and the Russian Federation develop in the best possible way."
Dmitry Medvedev was not in the mood to joke about relations with the US, but it is obvious that the Russian leader does not intend to antagonise the new US administration. "We hope that the new President of the United States will be a successful president who will properly design domestic and foreign policy, and who will be able to build a solid foundation for relations between the Russian Federation and the United States," he said. "Russia is prepared for that, so we wish success to the new President of the United States."
Speaking about the upcoming international economic summit, Mr Medvedev and Mr Berlusconi shared their views on what could be done to improve the financial situation in the world. Both admitted that the world needed a new financial architecture, since the existing one had misfired and proven to be not workable. However, both were aware that a single meeting in Washington would not resolve any issues. "Nothing will be completed in Washington, things will only begin," Mr Medvedev admitted.
While Mr Medvedev and Mr Berlusconi were discussing global international issues, the two countries' ministers and businessmen were discussing the Russian-Italian partnership, long declared to be a strategic partnership. As in many other cases, energy forms the basis of partnership. Several agreements that will link Russia and Italy still more strongly in energy issues were signed yesterday. The declaration of intent between Russia's Rosatom and the Italian Ministry of Economic Development, belying its unassuming title, has the biggest potential.
"The agreement is more important than all the cooperation that exists, the head of Rosatom, Sergei Kiriyenko, said, commenting on partnership in the nuclear field. We are creating a working group and launching cooperation to develop nuclear energy." Italy, like many other European countries, has been tentative in the development of nuclear energy. According to Mr Kiriyenko, Mr Berlusconi believes this decision was a mistake, so new opportunities for cooperation are opening up.
For now, Russia and Italy will concentrate on developing fourth-generation nuclear reactors, but the head of Rosatom believes that within four to five years, nuclear plants may start being built in Italy. The company LUKoil supported cooperation in the field of oil refining by signing an agreement to create a joint venture with the Italian ERG to manage a Sicilian refinery that processes 16 million metric tons of crude every year. The Russian company will have a 49% stake and the cost of the deal is 1.34 billion euros.
In addition, Inter RAO UES signed an agreement with ENEL on cooperation in the power industry. Russian-Italian partnership is not confined to energy sectors, however. Two agreements were signed with the company Finmeccanica. One is an agreement on safety and satellite tracking systems for railways, signed with RZD, and the other was signed with the state corporation Russian Technology, which plans to build several joint enterprises to produce components from composite materials widely used in aircraft building. Russian Technology also signed a contract with the famous tire maker Pirelli on the construction of a tire factory in Togliatti.
"The estimated cost is 350-400 million euros," the head of the corporation, Sergei Chemezov, said. "But this is only an estimate. We have to prepare the project before we know the exact volume of investments."
The enterprise will produce tires for cars and lorries, and may be operational by the end of 2010. Production of a number of FIAT models is to be launched in Russia a year earlier.
Sollers, which already produces FIAT Albea, plans to launch two more FIAT models next year - at least, the company's director-general Vadim Shvetsov, who signed the agreement with FIAT yesterday, hopes so.
Mr Shvetsov told RG that the two models are of the B and C class. He declined to name them, but said they would be low-cost models, in the price range under $10,000. Thus, the "children of friendship" with Italy may again fill Russia's roads.
After talking with Mr Medvedev, Mr Berlusconi visited Prime Minister Vladimir Putin.
"In the context of the complicated situation in the world economy and finances, economic relations between Russia and Italy are an important stability factor," Mr Putin said and, fixing his gaze on Mr Berlusconi, added, "We know you are a great friend to Russia."
Yes, the Italian Prime Minister stressed. Russia and Italy are indeed great friends, and not only in the energy field. Russia and Italy are to exchange their respective "years" in 2011. In addition, the two countries intend to greatly simplify the mutual procedures of adopting children. An agreement to the effect has been prepared and that pleased Mr Putin very much.
"Our cooperation is probably strategic in character already," Mr Berlusconi gushed. "We are Russia's second biggest partner in terms of import and export. We want to be first in everything."
"Thank you," Mr Putin said quietly. "Our bilateral relations are developing well."
"There are opportunities to work together in the markets of developing countries. I am referring to multilateral projects that would be important for the whole European economy, for example, our energy projects in Libya and some other countries," Mr Putin said.