“Today we have made an important step toward expanding our bilateral partnership: we signed the ambitious Russian-Ukrainian Economic Cooperation Programme for 2011-2020. We intend to base it on the most promising areas of cooperation. The implementation of these plans will not only strengthen long-standing trade and economic ties but also create new science-intensive high-tech industries,” said the Russian prime minister.
Transcript:
Vladimir Putin: Ladies and gentlemen,
The Russian-Ukrainian Interstate Commission's Economic Cooperation Committee has just finished its eighth meeting...
“Today we have made an important step toward expanding our bilateral partnership: we signed the ambitious Russian-Ukrainian Economic Cooperation Programme for 2011-2020. We intend to base it on the most promising areas of cooperation. The implementation of these plans will not only strengthen long-standing trade and economic ties but also create new science-intensive high-tech industries,” said the Russian prime minister.
Transcript:
Vladimir Putin: Ladies and gentlemen,
The Russian-Ukrainian Interstate Commission's Economic Cooperation Committee has just finished its eighth meeting. In a very constructive exchange of opinions and information we discussed the entire range of issues connected to our trade and economic relations, and mapped out new areas of cooperation for the development and modernisation of our economies. Our joint efforts helped to ensure a quick recovery from the crisis of previous years. Our trade grew by 62% last year to $37 billion, and by almost 70% in the first quarter of this year, as I said during the meeting. We expect it to hit the $50 billion mark this year, exceeding pre-crisis levels.
It is important to maintain this momentum and ensure that there is qualitative progress of economic cooperation on the basis of our complementary industrial, research and technological potentials. We must increase our efforts as we launch breakthrough projects, especially in the spheres where our countries have major scientific, personnel and resource reserves. I would like to reiterate in this connection that we are successfully implementing space exploration programmes, and working on the prospects for the joint construction of nuclear power units. We are also extending aircraft-building cooperation and promoting our aircraft in third-party markets.
Ukraine is one of Russia's principal trade partners in the CIS. Russian businesses are investing ever more in Ukrainian industries. I regard the increase of mutual investment as the key indicator of our joint achievements. Joint business projects create new jobs and promote urban development at a new level. That is the human dimension of economic cooperation, about which so much is said.
I would like to note that today we have made an important step toward expanding our bilateral partnership: we signed the ambitious Russian-Ukrainian Economic Cooperation Programme for 2011-2020 . We intend to base it on the most promising areas of cooperation. The implementation of these plans will not only strengthen long-standing trade and economic ties but also create new science-intensive high-tech industries.
The committee discussed another essential topic: further integration among former Soviet states. I am confident that we will find the most acceptable options for integration-oriented cooperation – the most lucrative options for Russia and Ukraine.
During the one-on-one talks Mr Azarov and I had, we paid major attention to energy cooperation, particularly in the gas industry.
Russia and Ukraine are well aware of their shared responsibility for the stability of supplies and for the energy security of all of Europe. We have confirmed our determination to closely comply with all the existing agreements concerning both Russian fuel prices and reliable energy transit via Ukraine. I would like to add that Ukraine gained $2.9 billion last year, and $2.1 billion in January-April 2011 due to considerable gas discounts.
I am confident that today's decisions will open up new prospects for the further development of Russian-Ukrainian relations in every field.
In conclusion, I want to sincerely thank our Ukrainian friends for our talks, which were substantial, business-like and very candid . Mr Azarov and I agreed, as we said at the end of the talks, that we will work to improve the tools of our cooperation. We would like to move forward in certain critical fields – all energy industries, including oil and gas, nuclear energy, and energy transport; space exploration, aviation, and some other fields. To promote this work, we have agreed to improve ad hoc working groups, which will report to us about their efforts within the next three or four weeks. If need be, we will take part in a limited attendance meeting to see what progress has been made on particular projects and what can be done at our level to accelerate them. I hope these agreements will also help us to move forward. Thank you very much.
Mykola Azarov: Thank you, Mr Putin, for your detailed description of the issues we discussed today. I would like to say a few words about our dialogue, which was very interesting. We acknowledged that Ukraine is an important partner to Russia, while Russia is Ukraine's principal trading partner, which accounts for a major part of our trade.
We also discussed our economic interdependence. Ukrainian economic problems might adversely influence the Russian economy, though their influence is likely slighter than the impact that the Russian economic situation has on Ukraine. And we would not want this, as we are eager to see the Ukrainian economy develop. That is our goal, so we intend to be as cooperative as possible. We would like, however, to see Russia understand our problems. That is why, as I analyse the positive aspects of our cooperation, mentioned by Mr Putin, whose opinion I fully share, I would like to highlight problems, particularly in the gas and energy sectors, in spite of how much the Russian side might approve of the agreement on the terms of gas supply – I’m just kidding, Mr Putin.
Vladimir Putin: We are quite serious about it.
Mykola Azarov: From your perspective, it is very good. However, it might result in a wide range of problems. We think that a discussion of this issue is long overdue. At any rate, we should look for mutually acceptable solutions. We have agreed to establish working groups on the critical issues. These groups are to quickly produce practical proposals that would allow our cooperation to reach a new level, and settle some of the problems of our bilateral relations.
Cooperation on such a scale as ours certainly involves issues that need to be discussed. We had a long and constructive dialogue today. I think it was to the benefit of both parties. Mr Putin, I am deeply convinced that this summer will give us enough time to arrive at the solution of all the problems we have discussed.
I would like to thank you once again, and thanks to our colleagues for all their work. I wish you all the best.
Question: As far as I understand, the talks have not brought the parties to a consensus on gas prices. Have I got it right? Ukraine wants the price to be reduced while Russia prefers to keep to the agreements in effect. Did you find a comprehensive plan or mechanism to find a mutually beneficial solution to the problem?
Vladimir Putin: As you know, the seller always wants the highest price while the buyer insists on the lowest. It is always like that, but a dialogue eventually leads to a mutually acceptable solution. Contracts crown such agreements in the modern civilised world. We have a contract. It has been signed and is in effect. We think it reflects both Russian and Ukrainian interests. Do you know that we have made a $100 discount for every 1,000 cubic metres of gas as the result of agreements made on the Russian naval base in the Crimea? I have already said that we lose several billion dollars a year through this discount. It is not at Gazprom’s expense but at the federal budget’s because we have abolished export customs duties. The money bypasses the Russian budget to wholly come to the Ukrainian one. True, prices are rising but through no fault of our own. Gas prices are tied in with the world market prices of oil and petrochemicals, whose ups and downs automatically change gas prices. When the prices of petroleum and oil products go down, gas prices plummet with them, and Gazprom does not get the expected profits.
I think I should repeat that this pricing formula was calculated not on administrative designs but according to market laws. It is tied to market quotations at the world stock exchanges, and to oil and petrochemicals. Mr Azarov and I discussed the problem in great detail today. We are willing to discuss it and analyse all options connected with protecting Ukrainian interests. All this is sheer commerce, but we have shown how much the neighbouring countries are paying – just look. However, I suppose that there are other options to allow us to discuss the matter in a dialogue, and eventually make an acceptable decision. One of the working groups which I just mentioned will elaborate on such energy-related problems. However, such work should mainly be conducted at the professional and corporate level.
Mykola Azarov: Should I add anything?
I am very satisfied with Mr Putin’s answer, though I would like to make a comment: for some reason, this ideal formula enables our neighbours to buy gas cheaper than we do. So the formula is not so close to the ideal as it might seem, and the price range is very interesting. I told Mr Putin about a component of this gas formula, which makes 0.1% of the Ukrainian energy balance. We have many things to talk over, and it is very important that Mr Putin has agreed to take up this matter. I agree with him that there should be an expert discussion. Incidentally, he can confirm that I did not ask for any concessions for my country. Right?
Vladimir Putin: What’s this about? The question is disallowed.
Mykola Azarov: I only said that we need a logical approach which my country could understand. You think it is the ideal, while we find it quite far from perfect. We should come to consensus, and that’s all there is to it. Ukraine is not demanding any concessions! We only want a normal approach that accounts for both parties’ interests, mutual respect and equal cooperation. I am glad that Mr Putin agreed to base our talks on these principles. Thank you.
Vladimir Putin: To be exact, I would like to say that the formula of natural gas pricing used for Ukraine is the one that works for all our European partners. The same formula applies to gasoil, heating oil and other oil products. Now, our Ukrainian friends wish to change the formula and include other components in it. But we cannot apply certain components to Germany, another ones to Poland, these components to Ukraine and those – to Romania. The minister mentioned gasoil here. I have known him for ten years as a true professional. Now, gasoil prices are tied in with crude oil prices, and fluctuate in the world markets with them. I say all this merely to show that we did not invent the price-setting formula. It fluctuates with crude oil and its derivatives in the world markets. We might talk about what Mr Azarov said, and look around for some other options, in which both sides would see more justice. Be that as it may, this is a universal formula, which is valid for Ukraine just as for any other country. This is a critical matter, and I want everyone to understand it.
Question: My questions concern both prime ministers. Mr Azarov, the first one is for you. When you were preparing for this meeting, you made a statement the day before you departed from Kiev. You said that raising gas transit fees might be one of Ukraine’s arguments. Are you ready to say so to your colleague? Was it mentioned today? Now, Mr Putin, what do you think of such things? It might be a fair arrangement with large fees for the transit of expensive gas. Thank you.
Mykola Azarov: I voiced many of Ukraine’s arguments as I talked with Mr Putin – practically all the arguments from which the relevant working group might proceed. But we certainly take a civilised approach…
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источник новости: http://premier.gov.ru/eng/events/news/15508/
