Vanguard News Network
VNN Media
VNN Digital Library
VNN Reader Mail
VNN Broadcasts

Old August 7th, 2016 #21
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Interview to Azerbaijan State News Agency AZERTAC


In advance of his visit to Azerbaijan to take part in the first tripartite meeting of the leaders of Azerbaijan, Iran and Russia, President Putin granted an interview to AZERTAC News Agency.


August 5, 2016 - 11:05





Question:

What is your assessment of the current level of Russian‑Azerbaijani bilateral relations, and what are the prospects of their enhancement?



President of Russia Vladimir Putin:

The relations between Russia and Azerbaijan are those of a strategic partnership. They are rooted in our long-standing traditions of friendship and good neighborliness, equality, respect for each other’s interests, common history and culture, and millions of lives that are closely intertwined.

All these factors provide a solid foundation for developing trust-based relations between the leaders, governments and parliaments of the two countries. Mutually beneficial cooperation in such areas as trade and the economy, investment, energy, the transport infrastructure, the automobile industry and health care has been expanding.

Also noteworthy is the fact that cooperation between our regions has reached quite an advanced stage. Today, 17 constituent entities of the Russian Federation work together with their Azerbaijani partners to implement agreements on cooperation in trade and the economy, science and technology and culture. Besides, enterprises and companies from over 70 Russian regions are engaged in trade with your country.

We work closely together in the South Caucasus, as well as within the CIS and leading international organisations. We see great potential in increased cooperation in the Caspian Sea, primarily within the Caspian Five (comprising Russia, Azerbaijan, Iran, Kazakhstan and Turkmenistan) and the developing trilateral partnership involving Iran.

Humanitarian ties play an important role in strengthening friendly and good-neighborly relations. In this regard, I would note a steadily growing trend for broader contacts in education. Currently, there are about 15,000 Azerbaijani students in Russia, while branches of Russian universities operate successfully in Azerbaijan.

Our joint project, the Baku International Humanitarian Forum under the patronage of the Russian and Azerbaijani Presidents, has proven its relevance and importance as a platform for discussing key current issues. In a relatively short time (since 2011), it has become a major event in regional and international public life. Currently, together with our Azerbaijani colleagues, we are actively preparing the fifth Forum to take place this September.

I am confident that the further progressive development of Russian-Azerbaijani relations is of special importance for ensuring regional stability and security, maintaining peace and mutual understanding in the South Caucasus and exercising the fundamental interests of our peoples.



Question:

The global crisis has affected bilateral trade between Russia and Azerbaijan, causing it to decline. You mentioned it at your meeting with Azerbaijani President Ilham Aliyev in St. Petersburg last June. What do you think should be done to boost trade and, more broadly, to incentivize economic cooperation between the two countries, including industrial collaboration and mutual investment?



V.Putin:

It is true that the adverse and challenging environment of the world economy has impacted our business ties as well. Nevertheless, Azerbaijan ranks fifth in Russia's foreign trade with the CIS countries (following Belarus, Kazakhstan, Ukraine and Uzbekistan). At the same time, Russia is a leading importer of Azerbaijani goods.

According to the Federal Customs Service of Russia, in 2015 Azerbaijan-Russia trade turnover shrank by 30 percent, to $2.8 billion compared to $4 billion in 2014. This year we have not managed to reverse the situation yet: in January–May mutual trade amounted to $568.5 million, which is 52.8 percent less compared to the same period of 2015.

We believe that an upsurge in the supply to Russia of Azerbaijani agricultural products, which are in demand on our market, as well as an upturn in exports from Russia to Azerbaijan of fertilizers and agricultural machinery necessary for the expansion of cultivation areas could all play a significant role in increasing mutual trade.

We expect full implementation of Uralvagonzavod's plans to supply railway vehicles to Azerbaijan, Krasnoe Sormovo's plans to build and deliver two tankers for the Azerbaijani State Caspian Sea Shipping Company, as well as plans to launch joint pharmaceutical production with the participation of the Russian R-Pharm group of companies.

Enhanced mutual trade in services in such fields as transport, the financial sector, insurance, telecommunications, culture and recreation could become yet another important track in the development of trade and economic ties. Today, they already add nearly 20 percent ($0.5 billion) to the total turnover.

Consolidation of Iran's and Azerbaijan's railway infrastructure under the International North–South Transport Corridor project would offer new prospects for using Russia's and Azerbaijan's transit traffic capacities to their full extent.

We believe it is important to foster collaboration between business circles of our countries within the Russian-Azerbaijani Business Council set up under the Russian Chamber of Commerce and Industry. We hope that a similar agency would be established in Azerbaijan as well.

While there is a drop in trade turnover, our countries still witness rather stable investment cooperation development. Today, some 600 Russian companies operate in the Azerbaijani market, with about 200 of them with 100‑percent Russian capital. Besides, Russia's direct investment in Azerbaijan amounts to about $1.4 billion.

We will continue our work to create an environment that would encourage our companies to switch to carrying out mutual settlements in national currencies. At present, these are mostly performed in USD.

There is no doubt that the current troubles in our bilateral trade and economic relations are but temporary. We are convinced that through concerted efforts and in close partnership we will be able to set our mutual trade on a path of sustainable growth.



Question:

Today, a new integration paradigm is taking shape – a regional cooperation framework that involves Azerbaijan, Iran and Russia. The North–South Transport Corridor project is believed to be the core element of this trilateral cooperation. What other projects, in your view, could make cooperation between the three countries sustainable and effective? Can this trilateral engagement help to remove some of the existing differences, for instance on such issues as the division of the Caspian Sea or the use of its energy and biological resources?



V.Putin:

On August 8, 2016, we will meet for the first time at a summit of the three Heads of State in Baku, at the invitation of President of Azerbaijan Ilham Aliyev, to discuss the prospects for developing long-term and mutually beneficial cooperation that would span diverse areas: from economic and humanitarian ties to security and the fight against terrorism.

Our talks will focus on a flagship project – the International North–South Transport Corridor with a total length of 7,200 kilometers. It aims to provide the best possible opportunities for transporting transit cargo from India, Iran, and the Gulf States to Azerbaijan, the Russian Federation and further to Northern and Western Europe.

Notably, in 2015, the overall cargo traffic along the International North–South Transport Corridor involving JSC Russian Railways amounted to 7.3 million tons, exceeding the level reached in 2014 by 4.1 percent, or by 0.3 million tons.

Other promising areas for cooperation include the implementation of strategic investment projects in the energy sector and the transport infrastructure. There are opportunities for expanding trade in the services, including those in tourism, healthcare and education.

Indeed, the trilateral dialogue will also cover the Caspian issue. It is common knowledge that in recent years, the Caspian Sea states have made headway in reaching a consensus on matters related to various aspects of cooperation in the Caspian Sea, including the use of its energy and biological resources. Relevant agreements were signed and are now being successfully implemented. Work on the core Convention on the Legal Status of the Caspian Sea is nearing completion.



Question:

Following the decision reached on the settlement of the situation concerning Iran's nuclear program, there was a marked increase in contacts between Moscow and Tehran. Iran, in its turn, seeks to play a more proactive role in the region, particularly to consolidate its status within the SCO. What is your vision of the prospects for Russian-Iranian cooperation?



V.Putin:

Iran is Russia’s longtime partner. We believe that bilateral relations will benefit from the reduction of tensions around Iran following the comprehensive agreement on the Iranian nuclear programme.

First of all, we intend to continue fostering trade and economic cooperation. During my visit to Tehran on November 23, last year, and my negotiations with Iran’s Supreme Leader Ali Khamenei and Iran's President Hassan Rouhani, I found that Iran’s leaders genuinely share this approach.

Thus, through collective efforts we have managed to increase the volume of mutual trade. In the first five months of this year, it grew by 70 percent, reaching $855 million.

In certain areas, Russian-Iranian cooperation has already become strategic in nature. This is particularly true of the joint work in the field of peaceful nuclear energy. Iran’s first nuclear power plant, Bushehr was built on the basis of Russian technologies. Plans for the construction of 8 more nuclear power units by Russian specialists in Iran have been agreed.

We will further assist our Iranian partners in implementing the Plan of Action on Iran's nuclear program, including the processing of enriched uranium and the conversion of facilities to produce stable isotopes.

Large-scale joint projects in the oil and gas sphere, and the aerospace and electric power industries are being developed. For instance, Russia intends to grant two state loans to Iran to the amount of €2.2 billion to finance the construction of a thermal power plant near the city of Bandar Abbas on the Persian Gulf coast and the electrification of the Garmsar–Ince Burun railway section in the north-east of the country.

The creation of a free trade zone between the Eurasian Economic Union and Iran can give a strong impetus to trade and investment contacts between Russia and Iran. The joint research group, which will study in detail the parameters of a possible agreement, has already begun its work.

We are also interested in strengthening our partnership with Tehran in regional affairs. We consider it an important factor of maintaining stability and security across a large territory from Central Asia and the Caspian region to the Middle East. We will continue to support Iran's pursuit of full SCO membership.



Question:

Recently, the world has faced an unprecedented upsurge of terrorism and violence, including in close proximity to our countries' borders. What steps could Russia, Azerbaijan and Iran take to ensure their common security and address the threats?



V.Putin:

We are most certainly concerned about two hotbeds of instability, in Afghanistan and in the Middle East, that are situated in the immediate vicinity of the Russian, Azerbaijani and Iranian borders. They pose a grave threat of international terrorism and cross-border crime primarily due to the increased drug flow, arms trafficking and movement of fighters.

Let me specifically underscore that the recent terrorist attacks perpetrated in various regions of the world prove yet again that terrorism can be addressed solely through a common effort guided by the norms and principles of international law and coordinated by the UN. In this endeavor, there can be no double standards; terrorists cannot be divided into ”good“ and ”bad“ ones. And, of course, it is unacceptable and extremely dangerous to try to exploit terrorist and radical extremist groups out of political and geopolitical interests.

These are the very principles that our countries actively promote within the international community in an effort to broaden and strengthen as much as possible international cooperation at the political level as well as at the level of law enforcement bodies and special services.

Today, we can say that Russia, Azerbaijan and Iran are engaged in a close dialogue on this issue. Therefore, Russia collaborates with Baku both within the CIS Anti-Terrorism Center and on a bilateral basis. Russia and Teheran have similar key approaches as well. We see additional opportunities in enhanced multilateral anti-terrorism cooperation within the SCO.

Together with our Iranian partners, we are engaged in the Clean Caspian Sea operation aimed at cutting off drug trafficking routes. The Caspian Anti‑Drug Group of Five forum has considerable potential.

I believe there are also good prospects for intensifying interaction to counter terrorism and drug trafficking in a trilateral format.



Question:

Lately, Russia has strengthened its mediation efforts aimed at finding a solution to the Nagorny Karabakh conflict. As is well known, it is through the mediation of the Russian side that the ceasefire regime along the line of contact was restored after the escalation of tension in April 2016. Russia also initiated the St. Petersburg meeting between the presidents of Armenia and Azerbaijan, which was considered useful and fruitful by the sides. There is a perception that Russia is the one to take on a crucial role in untying the Karabakh knot. Do you agree?



V.Putin:

Russia’s bond with Armenia and Azerbaijan builds on deep historical roots, the strategic nature of our relations, and geographical proximity. Therefore, it is our genuine interest that the neighboring region is peaceful and calm again, that casualties stop, borders open, and economic ties are restored there.

We are doing our utmost for that. I recall that, in May 1994, the ceasefire agreement was signed with the direct assistance of Russia, and it is still the basis of the truce. The adoption of the 2008 Moscow Declaration was an important step. It confirms that a conflict settlement should be achieved through political means alone. By the way, this is the first and still the only document on the Nagorny Karabakh settlement signed by the presidents of Armenia and Azerbaijan. It was Russia again that played the crucial role in the cessation of large-scale hostilities at the beginning of April 2016.

I would like to particularly emphasize that we are not trying to impose some ready‑made solutions upon Armenia and Azerbaijan. The sides should reach an agreement and find mutually acceptable solutions independently, without external pressure. This is our firm position.

Reaching a compromise means finding an optimal balance between the principles of territorial integrity and the right of peoples to self-determination. We are fully aware of the responsibility that rests on the shoulders of the Armenian and Azerbaijani leadership. We welcome the constructive approach that prevailed during the latest summit on the conflict settlement held on June 20, 2016, in St. Petersburg.

The final goal of the settlement should be an agreement with no winning or losing sides, with mutual concessions and benefits for both sides that are clear to the public in both Armenia and Azerbaijan.

In its turn, Russia is ready to support a solution that would be acceptable to all parties involved and, together with other mediators, to act as a guarantor of the settlement.

I would like to touch on one more issue. We often hear that Russia is trying to monopolize the work related to the settlement of the Nagorny Karabakh conflict and push other mediators aside. That is a misconception. The trilateral summits on the Karabakh issue with the participation of the Russian President – there have been more than twenty such summits – perfectly complement the efforts by the OSCE Minsk Group co-chaired by Russia, the US and France to settle this conflict. It should be noted that US and French representatives attended the concluding part of the abovementioned trilateral summit in St. Petersburg.

The Russian Minister of Foreign Affairs, Sergey Lavrov, and the Minister of State for European Affairs of the French Foreign Ministry, Harlem Desir, were, in their turn, invited to the meeting between Ilham Aliyev and Serzh Sargsyan held on the initiative of the US in Vienna on May 16, 2016.

Such an approach is an example of how we can and should work to settle international conflicts. I hope that our joint efforts will help the sides to reach a consensual solution.





The source of information - http://en.kremlin.ru/events/president/news/52650
 
Old August 11th, 2016 #22
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Meeting with President of Azerbaijan Ilham Aliyev



August 8, 2016 - 15:40 - Baku





President of Azerbaijan Ilham Aliyev:

Mr Putin, guests, it is my pleasure to welcome you once more to Azerbaijan.

This is your third visit to our country in the past three years, which in itself reflects the high level of relations between our countries.

I also visit Russia often. We met recently in St Petersburg in June. These regular meetings give new impetus to developing our relations, which have long since reached the strategic partnership level and encompass practically all areas of our life.

We work together actively at international venues, strengthen our political dialogue, develop our economic, transport and energy ties, and we have good results in developing our humanitarian cooperation too.

Baku will host the next humanitarian forum within the framework of the Russia for Azerbaijan program in September. This offers good opportunities for developing our relations.

I would particularly like to stress Russia’s role in settling the Armenia-Azerbaijan conflict in Nagorno-Karabakh. We value this role, and your personal involvement plays a very important part in the settlement process. We had a meeting in St Petersburg in June devoted specifically to this issue, and I thank you for your active participation in this process.

Today, the leaders of Iran, Russia, and Azerbaijan will hold their first trilateral meeting. This is a promising new format that has potential for bilateral cooperation as well.

We will also discuss important regional cooperation issues today. I think this will contribute not only to our countries’ economic development but also to strengthening security in our region.

Once again, let me welcome and greet you with all my heart.



President of Russia Vladimir Putin:

Thank you very much for the invitation, Mr Aliyev.

I fully agree with your description of our relations, which have indeed become a strategic partnership not just on paper but in reality. It is very good to see that our ties are greatly diversified now, developing in different areas. In the humanitarian area — and you put forward the proposal to develop this dimension of our relations — we now hold a regular top-level Humanitarian Forum.

This is a top-level event taking place under our patronage. Thus, Speaker of the Russian Parliament’s upper house Valentina Matviyenko took part in the latest forum.

Close to 600 Russian companies work in Azerbaijan and direct investment comes to $1.4 billion.

There are some points I would like to note now. As we all know, for various reasons such as the crisis affecting both the global economy and our own, the drop in the prices of our traditional export goods and the related problems with exchange rate differences, our trade turnover has dropped in value terms.

It is therefore very timely that we have this chance to discuss these matters today and find solutions to these issues. We have built an excellent base in this area, and overall, we are maintaining the physical volumes of trade. I fully agree with you here.

We also have promising new projects, not only in the energy sector, of course, but in other sectors such as machine-building and high technology. I think this is very important. We continue our cooperation on the Caspian Sea, including our military cooperation.

Thank you very much for organising this trilateral meeting. This was also your initiative and we do indeed have matters to discuss in this format, new projects in the Caspian Sea, and on the broader plane, transport, the energy sector, and the development and diversification of our trilateral trade and economic ties.

You mentioned Nagorno-Karabakh. This is indeed one of the problems that we have inherited from the Soviet past. I know what a sensitive issue this is for Azerbaijan and Armenia. We have but one sole aim – for Armenia and Azerbaijan to find a solution that would be a mutually acceptable compromise for both sides, for there to be no victors in this conflict, no victors other than the peoples of both countries, and for both countries to know that they have resolved this complicated task in the interests of current and future generations.

Mr Aliyev, thank you for the invitation. I am sure that our work together today will be positive, productive, and will help to create conditions for further developing our bilateral relations and improving the situation in the region.

Thank you very much.





The source of information - http://en.kremlin.ru/events/president/news/52663
 
Old August 11th, 2016 #23
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Trilateral meeting of the presidents of Azerbaijan, Iran and Russia

The three presidents concluded their meeting by adopting a declaration affirming their intent to develop trilateral cooperation.

The declaration covers cooperation areas such as joint efforts to fight terrorism, settle regional conflicts, work together on the Caspian Sea, and develop ties in the energy sector, transport and other areas.

The three presidents agreed to establish working groups in the cooperation areas of mutual interest.

Earlier in the day, Mr Putin had separate bilateral talks with the presidents of Azerbaijan and Iran.



August 8, 2016 - 19:35 - Baku





President of Russia Vladimir Putin:

President Aliyev, President Rouhani, esteemed colleagues.

First of all, I would like to second the words of gratitude that the President of Iran expressed to President Ilham Aliyev for his initiative to organise this trilateral meeting.

Azerbaijan and Iran are good neighbours and important partners for Russia. We have amassed a rich history of productive cooperation. No doubt, today we are opening a new chapter in our relations by embarking on cooperation in a trilateral format. We believe the need for this format is clear: the three countries have a shared interest in coordinating approaches on a broad range of regional and global issues, and in continuing to promote multifaceted practical cooperation on trade and the economy.

I would also like to note that all countries, or at any rate many countries, are facing similar problems. I am referring to the continued global economic crisis and persisting tensions. For our nations this is especially relevant because the tensions I have just mentioned exist on our borders both in Afghanistan and the Middle East. The area of instability and ongoing conflicts, the mounting terrorist threat, primarily from ISIS, Jabhat al-Nusra and other terrorist organisations, pose a real danger to us.

In order to search for ways to resolve these problems we need to develop closer cooperation between our countries. The main areas of trilateral cooperation are mapped out in the declaration that we will adopt following today’s summit.

I would like to emphasise some issues that Russia considers important. For example, we consider it expedient to step up the exchange of information on the activities of international terrorist organisations. This is needed in order to more effectively curb the transit of militants, weapons and drugs via our territories.

We hope that trilateral dialogue on Caspian issues will help us complete work on the convention on the legal status of the Caspian Sea ahead of schedule. I am convinced that signing and implementing this convention is in the interests of the five Caspian states.

The prospects of cooperation on transport infrastructure are promising. I am referring to the plans to create a Western wing of the North-South international corridor.

In the energy industry priority should be given to the implementation of projects for the exploration and development of oil and gas deposits, first of all in the Caspian region.

We are ready to discuss mutually beneficial projects on the joint use of pipeline infrastructure for the transit of raw materials.

Naturally, more attention should be paid to cooperation in the areas of culture, tourism, youth exchanges and education. We need to promote direct ties between the regions of our three states.

I am convinced that in the future cooperation between neighbours – Russia, Azerbaijan and Iran – will be pragmatic and mutually advantageous. It will meet the vital interests of our nations and create fresh opportunities for the dynamic development of the entire Caspian region.

Needless to say, we still have a lot to do, and Russia – let me assure you of this, colleagues – is prepared to work together. Thank you for your time.





The source of information - http://en.kremlin.ru/events/president/news/52666
 
Old August 11th, 2016 #24
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

News conference following talks with President of Turkey Recep Tayyip Erdogan



August 9, 2016 - 18:00 - St Petersburg





President of Russia Vladimir Putin:

Mr President, ladies and gentlemen,

We have just completed the main part of the talks with President Erdogan. Naturally, this meeting is very important for the future of Russian-Turkish relations.

We had a meaningful and, I would like to emphasise, constructive conversation on the entire range of bilateral issues and the international agenda.

The history of our relations includes different periods, sometimes very comlicated and even dramatic ones, but the logic of mutual respect inevitably wins out.

First of all, I would like to note that despite the complicated domestic situation in Turkey, Mr Erdogan found the time to come to St Petersburg, and this step certainly shows the interest of our Turkish partners in restoring cooperation with Russia.

Today we met first in a limited format and then in an expanded group – with the participation of the heads of ministries and departments and CEOs of large companies – and mapped out the future actions and initial tasks that are required to effectively restore the multifaceted ties between our countries. Our priority is to reach the pre-crisis level of bilateral cooperation.

And this is really an urgent task because just in the first five months of this year Russian-Turkish trade fell by 43 percent. Considering that last year the decline was 23 percent, 26 percent, this trend is very regrettable. We have painstaking work ahead of us to revive our trade and economic cooperation. We have already begun this process but it will take time. The visit of a Turkish delegation of Government economic officials and their talks with Russian colleagues in late July was an important step in this context.

We intend to pay special attention to building up investment, commodity flows and the implementation of promising projects. It is very important that we have the support of our business communities in these efforts. After the news conference we will have an opportunity to hold a detailed discussion with heads of major companies of the two countries. I am referring to the phased lifting of the special economic measures – restrictions – introduced earlier with respect to Turkish companies. The Russian Government is working on a draft mid-term programme of trade, economic, scientific, technical and cultural cooperation for 2016–2019.

President Erdogan and I have agreed to steadily resume the work of the main mechanisms of cooperation. A session of the mixed Intergovernmental Commission on Trade and Economic Cooperation is scheduled for September. The relevant departments of both countries have been instructed to conduct a meeting of a joint strategic planning group in the first half of 2017.

I would like to note in this context that the energy industry has long occupied a key place in trade and economic cooperation between Russia and Turkey. We discussed major joint projects in this field, the continuation of which will require concrete political decisions. Incidentally, Turkey has already made decisions on a number of large projects that we discussed earlier. I am referring to such projects as the construction of the Akkuyu Nuclear Power Plant and the Turkish Stream gas pipeline system.

Bringing our tourists back to Turkish resorts is also on our agenda. The ban on selling package tours to Turkey to Russian citizens was lifted in late June. I believe reaching pre-crisis tourist levels is only a matter of time. Most importantly, the Turkish side must ensure safe conditions for Russian citizens, and we have received such assurances from our partners. In this regard, we considered the possibility of resuming charter air service. This is, perhaps, also a technical issue that can be resolved quickly.

We touched on the issue of lifting restrictions on hiring Turkish citizens and companies in our construction projects. We are working on it, and we will resolve this issue soon. Notably, bilateral cooperation on certain large-scale projects didn’t stop at all. For example, the opening of the central portion of the Western High-Speed ​​Diameter Highway here in St Petersburg is scheduled for late 2016. It is being built jointly by a Turkish general contractor and an Italian company.

We had a detailed exchange on pressing international issues. By the way, we agreed that following the news conference we will have a separate discussion of all issues related to the Syrian settlement. There is a general understanding. I am confident that fighting terrorism is a critical element of our joint efforts, and we'll discuss this in more detail later.

In closing, I would like to thank President Erdogan for a candid conversation we have had today. The talks have confirmed that our countries have every opportunity to restore normal, full-fledged relations, which would help bolster stability not only in our region, but also throughout the world. Russia is ready to work toward this.

Thank you.



President of Turkey Recep Tayyip Erdogan (retranslated):

Mr President, my dear friend, ministers, ladies and gentlemen,

I would like to express my heartfelt greetings and respect to you and, above all, to thank my dear friend Vladimir Putin for his invitation and for the warm welcome he gave me.

Today, President Putin and I had meaningful and substantive talks. As you know, these were the first talks after the incident, and this is our first face-to-face meeting in a long time. In addition, my visit to Russia is the first I have made since the attempted coup on 15 July in Turkey.

We are determined to restore our relations to the pre-crisis level and beyond. We have the political will to do so. I think that our respective societies expect us to do just that.

As a result of today’s talks, political, socioeconomic, cultural and humanitarian relations between Russia and Turkey will finally be restored to their rightful level of before the crisis.

In addition, it is imperative to resume charter flights between our two countries, lift the restrictions on Turkish agricultural products, and open the way to Turkish building contractors. I hope that, step by step, we will do everything necessary to reach this goal.

Of course, I would like to note that we are willing to designate the Akkuyu Project as a strategic investment project. We have reached agreement on this matter. We plan to expand our cooperation in the defence industry.

With regard to regional issues in Russia, Turkey and Azerbaijan, we have launched a trilateral format, which we appreciate greatly. Furthermore, large-scale projects, such as the Akkuyu NPP, are important to us, and we should actively promote them. I hope that the Moscow-Ankara axis of friendship will be restored as a result of these steps.

Speaking about friendship, I cannot ignore one fact. On July 15 and 16, our country lived through one of the most despicable and bloodiest coup attempts. Members of the Fethullah Gülen terrorist group carried it out with the intention of overthrowing our Government. This was an attempted coup aimed at our democracy. We will continue to fight back in solidarity with our friends.

In addition, the Turkish Stream will be completed. Together with the relevant ministries and departments of our countries, we will take the necessary steps to ensure Russian gas supplies to Europe via this gas pipeline.

On the day after the attempted coup d’etat, President Vladimir Putin called us, which was really important for us psychologically – it was a kind of moral support and a display of Russia-Turkey solidarity.

Esteemed members of the press, Turkish-Russian relations are not limited to trade and economic ties. We are also hoping that their restoration and normalisation will bring peace and stability to the region, which is very important. In addition, we will soon meet in a very narrow format where we will have an opportunity to discuss these issues as well.

Owing to the political will of the leaders of Russia and Turkey and the support of public opinion in both countries, our bilateral relations have indeed reached a level in the past few years that could serve as an example for other countries. We have a shared vision and potential for cooperation. These are our achievements.

Today, my dear friend Vladimir Putin and I have confirmed the similarity of our positions on normalising relations. We should use the capabilities of our countries to enhance regional stability. We believe Russian-Turkish relations are now much more stable than any time before and will help us counter all kinds of crises.

In conclusion, I would like to thank my dear friend Vladimir Putin personally and on behalf of the Turkish delegation, and to express my love and respect to all members of the press and everyone listening.



Question (retranslated):

My question is for both presidents, first the President of Turkey, then Mr Putin.

In terms of resolving the situation in Syria, there have obviously been some differences of opinion between the two countries, between the two leaders. However, both countries are in favour of democratic changes in that country, and you talked about this.

How much did you focus on Syria today? Will both countries perhaps develop a road map to resolve this issue?



Recep Tayyip Erdogan:

First of all, I would like to say that we have not yet discussed this issue during today’s talks. Following the news conference, we plan to discuss it thoroughly. Therefore, I cannot say anything, since we did not discuss this issue.



Vladimir Putin:

I can confirm what our guest, the President of Turkey, has just said. Everyone knows that our views on a Syrian settlement have not always been aligned. We agreed that following this meeting we would meet separately with foreign ministers and representatives of special services, share information, and look for a solution.

You mentioned democratic reforms. We believe that democratic change can only be achieved by democratic means. This is our principled position.

With regard to harmonising our views and approaches, I think this is also possible, if only because we have a common goal, which is to resolve the Syrian crisis. I think that based on this platform and this general approach, we will start looking for a mutually acceptable solution.



Question:

Mr Putin, you spoke about the need to revive trade and economic relations between the two countries and, in part, about some of the agreements on major projects that have already been reached. If I may, I would like to ask you to specify which project is more important for Russia – the South Stream, considering Sofia’s statements, or the Turkish Stream, considering your discussion today – and the general character of Russia-Turkey cooperation at the moment. Or is there a possibility of compromise on these two projects?

And Mr Erdogan, you expressed interest in implementing the Akkuyu Nuclear Power Plant project and even intend to grant it a new status. However, as far as I know, its continuation requires the adoption of several laws in Turkey and the acquisition of a number of permits. When will practical steps be taken to this end? Thank you.



Vladimir Putin:

We have never politicised economic cooperation. In proposing the South Stream project initially, we assumed that our gas would go directly to EU consumers in southern Europe. However, at first the European Parliament made a decision that prevented the implementation of this project and then the European Commission sent a letter to the Bulgarian Government demanding that preparations for it stop, and ultimately we did not receive the permission of the Bulgarian authorities to enter Bulgarian territory.

Yes, now we see that Bulgaria would like to resume this project, but we incurred some losses due to the refusal of our European partners to carry out this project. So now we will not settle for just intentions and need absolutely rock solid legal guarantees. They have not been forthcoming. Initially we regarded the Turkish Stream not even as an alternative to the South Stream but as an opportunity to expand our gas cooperation both with Turkey and Europe as a whole. One part of the Turkish Stream was designed exclusively for Turkey’s domestic consumers given the growing economy of the Republic of Turkey. This is how we discussed the issue today. This part is beyond any doubt and its implementation may be launched very soon.

The second part related to routing our energy to Europe depends, of course, on a third party. We should work out these issues with European countries and the European Commission in Brussels. Together with our Turkish partners and friends, we are prepared to work toward this, but again we need to have an agreement with all the participants.

With regard to all manner of permits, we should give credit to our Turkish colleagues. Unlike the South Stream project in the past, even despite the crisis in our relations, the Turkish side has been working on it, and basic permits and issues related to the Turkish Stream have already been processed and issued. There are still some issues that require more work to obtain permits. We discussed individual issues today.

As for the Akkuyu NPP, three Turkish laws have been amended. We raised the issue of designating it a strategic investment project, which met with a positive response today. All of this suggests that these major projects – and we are talking about projects worth tens of billions of dollars – are quite feasible. I hope they will be seen to completion.



Recep Tayyip Erdogan:

With regard to the Akkuyu project, what we were expected to do is designate the project a strategic investment. From this perspective, we talked with our friends, our colleagues, and we plan to adopt a decision and designate the Russian project as a strategic investment as soon as possible. That will allow Akkuyu to take its place among other projects in our country and enjoy all the necessary benefits that come with this status.

With regard to other issues, in particular, the Turkish Stream, as you may know, we buy 28 billion cubic metres of gas from Russia: 18 billion are bought by state-owned organisations and 10 billion by privately owned businesses. So, we plan to implement this project in two areas, one of which includes supplies of Russian gas to Europe, and to speed it up. This is one of our current tasks, and I believe it is the right thing to do.

Thank you.



Vladimir Putin:

I would add that our cooperation is not limited to energy, gas, or a power plant. It is quite diversified and includes mechanical engineering, metallurgical industry, and trade. We discussed at length the resumption of agricultural supplies. We will do all of that as part of the plans that we articulated today.



Question (retranslated):

A question for both leaders. First, Mr Putin, as we understand, you are resolved to restore relations to the pre-crisis level. Will this take time and if so, what timeframe do you have in mind? In addition, you mentioned the need to simplify visa requirements between the two countries. Are you going to return to this issue?

I also have questions for the President of Turkey. We see that relations have entered a new stage but you also said you were very pleased and grateful to Mr Putin for calling you on the phone after the attempted coup. So I would like to ask a question in the context of US-Turkish relations: is it possible to describe relations between Turkey and Russia as strategic? Have you entered a new stage of strategic relations?



Vladimir Putin:

Regarding the full restoration of relations – do we want it or not? Yes, we want it and will do this. Life moves very quickly. Certain changes were caused by the introduction of restrictions. We must consider these changes as we implement plans to restore our trade and economic ties.

In this context we adopted a Government decision to draft a medium-term programme of trade, economic, scientific, technical and cultural cooperation for 2016–2019, which I have just mentioned. I am hoping this programme will be adopted very soon. We will do this in the next few weeks on the issues that do not require much time for coordination between our departments. As for those issues that take longer to coordinate, we will include them in this medium-term programme. So I would advise you to follow the work of our Intergovernmental Commission and relevant departments.

We have just agreed that our colleagues will continue contacts on a daily basis without red tape. Decisions on some issues will be made in the near future.

As for visa issues, yes, they should be resolved as well, considering that they are related to economic cooperation. We have quoted our Turkish colleagues today as saying that visa restrictions are causing economic problems in the field of transport – both for train and air travel. We should take all this into account as we unblock our economic cooperation.



Recep Tayyip Erdogan:

Thank you very much, Mr President, in particular.

You are suggesting that I draw a comparison, but I can tell you this: in Russian-Turkish relations, in economic terms, we achieved a turnover of $35 billion. We are the two countries that managed to do this. Of course, after last year’s incident, trade fell to about $28 billion, and then even lower.

We have a High-Level Cooperation Council in place, which provides for this kind of strategic cooperation. We have worked together within this mechanism. We hope to be able to hold another meeting of the council next year and to resume our partnership from where we left it here in St Petersburg.

You may recall that we had a goal of reaching $100 billion in trade, and we will strive to achieve this goal. As of today, we are resuming the process, and we are moving towards this goal.

Another conclusion I have made: from the point of view of tourism, Turkey did derive substantial income from Russian tourists, and tourism brought our peoples closer. I believe we should not leave this process unattended. During today’s talks, the President said that the process of resuming charter flights between our two countries will be sped up. This process is an important sign that our rapprochement will go even faster.

Thank you.



Question:

Mr Putin, recently the foreign media again raised the issue of the Americans paying Iran $400 million in cash. Officially, this money was supposedly paid for arms supplies in 1979. But some claim that it was ransom for the release of four Americans from Iranian prisons. I recall your recent meeting with US Secretary of State John Kerry at which you said that you had fulfilled Barack Obama’s request to secure the release of Americans. Could you describe the details of this special operation and clarify whether aircraft with millions of dollars in cash have flown from Washington to Russia as well.



Vladimir Putin:

Your irony is understandable to an extent. I would like to say that we do not deal with exchanges and ransom, but indeed, several months ago the United States asked us to help secure the release of an American citizen who wound up on the territory of the Syrian Republic. We did this after some work. This was not a special operation. We simply reached an agreement with the Syrian authorities on this issue, received the man and transferred him to the US – of course, without any money or ransom. We were motivated exclusively by humanitarian considerations. That’s all. If there is an opportunity to help people in such difficult circumstances as was the case with that American citizen, we will be ready to do this in the future as well for citizens of any country. We hope that our partners will reciprocate with our citizens.

In conclusion I would like to thank representatives of the media and the President for his visit, for bringing such a representative delegation, and to express my gratitude to the Government of the Republic of Turkey and the business community.

I would like to say that we indeed went through a very difficult period in our relations but we would very much like – and we feel our Turkish friends would like this as well – to overcome these difficulties in the interests of Turkish and Russian citizens.

The supreme interests of our nations and countries demand the restoration of relations between our countries – and not only out of pragmatic considerations but also in the name of the long-term neighbourly ties and friendship between the peoples of Turkey and the Russian Federation.

Thank you very much.





The source of information - http://en.kremlin.ru/events/president/news/52673
 
Old August 11th, 2016 #25
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Inauguration ceremony of Unit 1 of Kudankulam Nuclear Power Plant


Vladimir Putin took part in the inauguration ceremony of Unit 1 of Kudankulam Nuclear Power Plant. The ceremony took place in videoconference format.


August 10, 2016 - 13:35 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Mr Prime Minister, Ms Minister [Jayaraman Jayalalithaa, Chief Minister of Tamil Nadu],

ladies and gentlemen, dear Indian friends,

Today, in accordance with the agreements we reached in Tashkent, we are witnessing the start of full operation of Kudankulam Nuclear Power Plant Unit 1 in India. This is a big event for our Indian partner, for the Russian company that carried out this project, and for all of us. The power plant was built using the most advanced world technology, Russian technology, and was built by Russian and Indian specialists working together.

Cooperation in nuclear energy is an important part of the privileged strategic partnership between our countries. Our work together in this sector has great importance for our countries’ development. This is not just about building a nuclear power plant and putting it into operation, but is a large-scale project to develop a new high-tech nuclear sector in India. This work involves transfer of skills and training of personnel and specialists in this area.

Russia is well known as a leader on the international market for nuclear technology and services. The nuclear power plants built by Russian specialists are reliable and meet the very highest safety standards. We are sharing with our Indian colleagues our experience and developments in this priority high-tech sector.

Unit one is starting work at its nominal capacity and a second unit will also come on line in the not so distant future, and this will substantially boost India’s energy supply and bolster its economic position. Peaceful nuclear energy development will be essential for a vast, powerful and rapidly growing country like India to resolve its social and economic tasks.

Together with our Indian friends we have big plans in this sector. Work began on the power plant’s third and fourth units in February this year. We plan to sign a general framework agreement and loan protocol for the construction of the third stage of the project by the end of this year. I would like to remind you that this project is being carried out using funds provided by the Russian Federation. Of the total project financing, 85 percent is in the form of a state loan provided by Russia.

I congratulate everyone on today’s event. I thank everyone who took part in implementing this project, and once again, I wish you success and all the very best. I am certain that our work together in this and other economic and high-tech cooperation areas will produce tangible and noticeable results and will contribute to our economies’ rapid and effective development.



Prime Minister of India Narendra Modi:

His Excellency President Vladimir Putin, Honourable Jayalalithaa ji, Chief Minister of Tamil Nadu, Sushma Swaraj, Minister of External Affairs, Minister Pon Radhakrishnan, my dear friends, welcome!

Today is indeed a special day. Today, Excellency Putin and I have the honour to dedicate Kudankulam Nuclear Power Plant Unit 1. I am particularly grateful to President Putin for his presence at this event. And I am delighted that Jayalalithaa ji, Chief Minister of Tamil Nadu, is also present with us on this occasion.

Friends,in dedicating Kudankulam 1, we mark another historic step in India-Russia relations. Its successful completion is not just another fine example of the strength of our special and privileged strategic partnership. It is also a celebration of our abiding friendship. And it is only a start of our collaboration in this field.

It is perhaps not commonly known that at 1,000 megawatt, Kudankulam 1 is the largest single unit of electrical power in India. In years ahead, we are determined to pursue an ambitious agenda of nuclear power generation. At Kudankulam alone, five more units of 1,000 megawatt each are planned. In our journey of cooperation, we plan to build a series of bigger nuclear power plants.

Friends, today’s event is also a joyful occasion for the team of Indian and Russian engineers, scientists and technicians. We salute their dedication and hard work and congratulate them for the fruits of their labour.

Friends, the story of human development has been of wide spread technological advancement and growing economic prosperity.

But, as we all know, it has not been without burden on our environment. I have a vision for India where achievements of our economic development are respectful to mother earth, and where the engines of our industrial growth are increasingly driven by clean energy. Kudankulam 1 is an important addition to India’s continuing efforts to scale up production of clean energy in India. It also signals our joint commitment to build pathways of partnership for green growth.

Excellency President Putin, the success of our joint efforts in nuclear power generation is a proud achievement of our cooperation. It demonstrates our common resolve to grown and build on new dimensions of our ties.

Above all, it showcases your personal commitment, consistent support and strong leadership in transforming the substance and character of our relationship. For this I am grateful to you, Mr President.

The people of India associate naturally and with great ease with the people of your great country. And personally, I have always deeply valued our friendship. It is, therefore, only fitting that today we join together to dedicate the Kudankulam Nuclear Power Plant unit one to the strength and vigour of our friendship and cooperation.

Long live Indo-Russian friendship!

I once again thank you, Excellency Putin, for joining me in this dedication and I look forward to meeting you at G20 in China. Also, my sincere thanks to Dr Jayalalithaa for being with us. Thank you. Thank you very much.





The source of information - http://en.kremlin.ru/events/president/news/52679
 
Old August 11th, 2016 #26
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Joint news conference with President of Armenia Serzh Sargsyan



August 10, 2016 - 18:30 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Good afternoon, ladies and gentlemen.

We have just finished the main part of our meeting with President of Armenia Serzh Sargsyan. As always, it took place in a friendly, trusting and constructive atmosphere.

We have discussed topical issues of bilateral cooperation and a number of key regional problems. Mr Sargsyan told me about the recent events – I would say tragic events in Yerevan – related to the hostage situation.

I would like to emphasise and reiterate that Russia strongly condemned this action by militants right from the start. We consider unacceptable any attempts to resolve difficult domestic political issues through illegal, unconstitutional actions.

During our talks today, we discussed ways of further developing our bilateral relations, including our trade and investment ties.

Russia is Armenia’s leading partner. We account for a quarter of the republic’s trade. Regrettably, in 2015 our bilateral trade fell by a little more than 11 percent. This was mostly due to unfavourable developments in the global raw materials and financial markets.

However, analysts noted positive signs in January-May of this year, notably an increase in trade. Although small, it still constitutes a trend and, as I said, we are happy about it. Now we must keep it going.

Imports of food and other agricultural products from Armenia have grown considerably, by 86 percent. Investment cooperation is going strong – Russia’s total investment in the Armenian economy has exceeded four billion dollars. It amounts to 40 percent of all foreign investment in Armenia.

About 1,300 Russian companies are operating in Armenia – around one third of all joint ventures with foreign capital. They are working in key sectors of the economy – gas, transport, telecommunications and finance.

I will mention our major domestic investors: this is primarily Gazprom, which invested about $800 million in Armenia’s energy projects; Rosatom, which is modernising the Armenian nuclear power plant using a Russian government loan of $270 million; and Russian Railways, which is carrying out a large-scale programme on upgrading Armenia’s railway infrastructure to the tune of over $500 million.

Armenia’s entry in the Eurasian Economic Union in January 2015 gave fresh impetus to bilateral contacts. The republic has already felt the advantages of membership. In 2015, as I said in the beginning of our meeting, the GDP of the Republic of Armenia grew by more than 10 percent, while revenues from import customs duties increased by 23.6 percent.

We have seen a high level of cooperation in educational, scientific and cultural exchanges. About 3,500 students study at the Russian-Armenian University and at eight affiliates of Russian universities.

The first academic year has come to an end at Moscow State University’s affiliate in Yerevan.

The founding of a Russian-language grammar school in Yerevan is under consideration.

Ladies and gentlemen,

Naturally, we paid considerable attention to the Nagorno-Karabakh settlement, taking into account the results of the Armenia-Russia-Azerbaijan trilateral summit in St Petersburg on June 20 and my latest meeting, as you know, with President of Azerbaijan Ilham Aliyev, which occurred just recently – on August 8.

I would like to stress that Russia is interested in decreasing tensions in relations between our neighbours. We will continue doing all we can to help undo the Karabakh knot in the framework of the OSCE Minsk Group and through direct contacts with Yerevan and Baku. We hope that Armenia and Azerbaijan will be able to settle their disagreements through compromise – without winners and losers.

We also discussed some issues of cooperation within the CSTO now chaired by Armenia. The next CSTO summit is scheduled to take place in Yerevan in October and Russia is certainly planning to attend it.

In conclusion, I would like to repeat that the talks went very well. I am confident that their results will facilitate the continued development of the multifaceted Russian-Armenian strategic partnership and the consolidation of regional stability and security.

Thank you very much for your attention.



President of Armenia Serzh Sargsyan:

Ladies and gentlemen,

To begin with, I would like to thank President of Russia Vladimir Putin for his wonderful hospitality.

Our active political dialogue at the highest level is a testament to the state of our bilateral relations, which span all fields of government activity – from the OECD allied partnership to economic integration in the Eurasian Economic Union and close humanitarian cooperation.

We are expanding ties between our regions. The now regular interregional Armenian-Russian forums and direct contacts between our regions are playing a major part in this. We appreciate Russia’s role in the world and in our region where a host of processes affecting stability and security are taking place simultaneously.

Armenia closely followed President Vladimir Putin’s intensive foreign policy contacts during the past week, which is absolutely understandable considering that Azerbaijan, Iran and Turkey border on Armenia.

I would like to thank the President of Russia for the information he provided about these meetings and I am confident that Armenia will only gain from Russia’s invigorated role in the region. Today we discussed the considerable success we have had in increasing Armenian-Russian trade. This is a direct response to those sceptics who said that Armenia would not gain anything from membership in the Eurasian Economic Union.

Suffice it to say that despite all the international complications and obstacles our trade grew substantially, and Armenian exports to Russia increased by almost 90 percent in the first half of this year. I am convinced that we will be able to maintain and strengthen this trend since we are far from fully using the existing potential of our trade and economic ties even today.

Naturally, during the talks today we focused on the Nagorno-Karabakh settlement and the implementation of the agreements reached during the summits in Vienna and St Petersburg. This includes, first and foremost, the unequivocal fulfilment of the 1994–1995 indefinite trilateral agreements on cessation of hostilities, the formation of a mechanism for investigating incidents and the expansion of the mission of the personal representative of the OSCE Chairperson-in-Office.

I have again thanked the President of Russia for Russia’s efforts as the co-chair of the OSCE Minsk Group in partnership with the United States and France, and for his significant personal contribution to the peace process. We discussed in detail the main principles and approaches to the resolution of this complicated issue in Sochi two years ago and they have remained unchanged since then.

It is impossible to resolve such a conflict by seeking to address its consequences rather than its root causes. The core of the Karabakh issue lies in the struggle of the people of Karabakh for self-determination – an inalienable right of all nations in resolving such issues, which should be respected and guaranteed. This is what we discussed in detail with the President of Russia today.

Peaceful negotiations on such a sensitive issue can never be simple. But all attempts to upset the balance of forces or create winners and losers are doomed to fail. Each side should benefit from realistic, clear-cut and feasible solutions that are rooted in mutual respect and trust rather than hatred and xenophobia.

The question of peace and accord is particularly relevant during the Olympic Games. We would like to wish success once again to the Russian and Armenian teams and to celebrate together the successes your and our athletes have already achieved. We are very proud that Russian athletes of Armenian origin have done very well.

The Ice Palace named after Irina Rodnina, a legend in world figure skating, opened in Yerevan several months ago. I am convinced that shared victories and achievements in sport fully reflect the mutual feelings of our nations. As the saying goes, a sound mind in a sound body.

Thank you very much.



Question:

This question is for President Putin.

Mr President, you are certainly aware that Karabakh is the most sensitive issue for Armenians, and we all have a great deal of hope for a peaceful settlement now that a trilateral meeting was convened in St Petersburg at your initiative.

However, shortly after the meeting, the President of Azerbaijan issued a statement saying that the Armenian side had allegedly promised to return five districts of Nagorno-Karabakh, and then three more districts. How do these statements correspond to the spirit of the negotiation process in St Petersburg? Do you think they are creating grounds for another round of escalation, with Azerbaijan obtaining a large number of weapons, whereas the supply of Russian weapons to Armenia remains, to put it mildly, questionable?

Thank you.



Vladimir Putin:

First of all, I don’t believe it is my job to comment on the statements of my colleagues, whether in Azerbaijan, Armenia, or anywhere else. I think that if you want to get a complete answer to your question, you should ask the person who made the statement.

However, I think everyone understands that whenever there is a difficult process of searching for reconciliation and compromise underway, all political and diplomatic means are used in the course of these rather complex activities, including the media, in order to stake out the positions of the sides. There is nothing unusual about it. It is, in fact, common practice.

In fact, I believe that both Armenia and Azerbaijan really want to find a way out of this situation in order to live in peace and harmony, to cooperate, and to grow their respective economies. Armenia is also interested in removing all infrastructural and economic restrictions in order to develop its economy, improve life for its people, and consolidate the Armenian state. This is our goal, the goal of a settlement. And the goal is to achieve these results.

Azerbaijan has similar goals. My recent contacts with President Aliyev in Baku bear this out. However, it is necessary to find approaches and arrangements where, as I mentioned, no one feels like a winner or a loser. There must be a solution developed by the leaders of Armenia and Azerbaijan that is accepted by the societies of both countries. That is the most important thing. Russia, as well as other countries of the Minsk Group, could act as a guarantor, and adopt corresponding UNSC resolutions, if necessary.

As for the weapons, we have a programme on this with Armenia. Armenia is a CSTO member and our ally. We have certain mutual obligations, and Russia has always kept its obligations, has always fulfilled them.

In today's arms market, any country can buy almost any weapon. A country such as Azerbaijan, an oil-producing country of almost 10 million people with a fast-growing economy, as well as sufficiently large gold and currency reserves can, of course, buy weapons anywhere it likes. You see? Anywhere. However, I would rather not focus on the military side of things now. If we want to resolve this problem, we should use peaceful means.



Question:

I have a question on settlement too, though on a somewhat different subject.

Foreign Minister Sergei Lavrov spoke in Baku of the possibility of a Normandy format meeting taking place on the sidelines of the G20 in China. Mr President, what is the likelihood of such a meeting taking place, particularly when, as reports say, the Russian intelligence services have just prevented the Ukrainian intelligence services from carrying out terrorist attacks on Crimean soil?



Vladimir Putin:

Yes, these are very worrying reports. Indeed, our intelligence services prevented a sabotage and reconnaissance group from the Ukrainian Defence Ministry from infiltrating Crimean territory. In this situation, a Normandy format meeting would not make much sense right now, all the more so in China.

Judging by the situation, those who seized power in Kiev back then and still hold it now are not seeking the sort of compromise solutions I spoke of with regard to the Nagorno-Karabakh settlement process, and instead of working towards a peaceful solution have decided to turn to terror.

This brings to mind the attempt on the life of the head of the Lugansk People’s Republic, which seems to fit into this same context. And now we have this attempt to infiltrate Crimea. I think that the media have already reported that Russia has casualties and lost two military servicemen in this incident. We cannot ignore such matters, of course.

However, I would like to appeal to our American and European partners too. I think it is now clear to all that the authorities in Kiev today are not looking for a solution to the problem through negotiations, but are resorting to terror. This is a very worrying development.

What we have seen just now in Crimea looks like a foolish and criminal action. It is foolish because you cannot have a positive impact on the people in Crimea in this manner, and it is criminal because people have lost their lives.

However, I think that the situation is actually even more worrying because acts such as this have no sense other than to divert the people in Ukraine itself from the lamentable economic situation and the serious difficulties in which many people there live today.

This attempt to provoke a flare-up of violence and spark a conflict is nothing other than a desire to divert public opinion at home from those who seized power in Kiev and who continue to hold it and to rob their own people in order to remain in power as long as they can and create conditions for continuing to rob their people. This was an act committed using low and base means, and it is a very dangerous game.

We will do everything we can, of course, to ensure security at infrastructure facilities and protect people, and we will take additional security measures, serious additional measures, technical and others.

Most important of all, those who support the current authorities in Kiev must decide just want they want. Do they want their clients to continue carrying out provocations of this kind, or do they want to genuinely reach a peaceful settlement? If they do want this, and I very much hope they do, it is time to finally take some real steps to put the needed pressure on the current authorities in Kiev.





The source of information - http://en.kremlin.ru/events/president/news/52684
 
Old August 27th, 2016 #27
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Meeting with Prime Minister of Slovakia Robert Fico



August 25, 2016 - 23:25 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Mr Prime Minister, friends, welcome to Moscow. We are very pleased to see you.

Unfortunately – I have to say this – unfortunately, our bilateral trade has been decreasing for the past few years, but we nevertheless have an opportunity to reverse this trend and keep moving on. Russia is still one of your country’s largest trade and economic partners.

As far as I know, Slovakia is currently presiding in the Council of the European Union. We hope that we will be working with you as President of the European Council to improve our trade and economic ties with Europe, considering that our trade had decreased by almost a half.

In a word, there are many issues we need to discuss. We are glad to see you. Welcome.



Prime Minister of Slovakia Robert Fico (retranslated):

Mr President, thank you for your kind words. We have many projects and proposals in mind, and we will be happy to discuss them.

I believe that we should use this intergovernmental commission more effectively. I think that the next time we will meet during the commission’s meeting will be in early 2017. We do not see any reasons why trade between Russia and Slovakia should decrease either.

We do look at things realistically and recognise objective reasons and objective factors, but we also need to do our best to restore the scope of trade we had until recently.

Taking over the Presidency of the European Union from July 1 to December 31, 2016 is a great honour for Slovakia. This means a lot of work needs to be done by the Government, but we are grateful for this opportunity, as we are more actively involved in the European process.

We took over the EU Presidency only a short time after the UK decided to exit the European Union. Several European prime ministers met in Paris earlier today to discuss what the European Union should be like with only 27 members instead of 28. This is not a simple issue, because some EU member states are also part of the Eurozone, and some are not.

Mr President, the good relations that exist between the Slovak Republic and the Russian Federation give us every opportunity to return our economic and other contacts to the level we had until recently.

If possible, I would like to discuss several issues today. I mean specific problems, such as the Cyclotron project, which has been unprofitable for years. Then there is cooperation in education and culture; and we have things to discuss about large energy projects.

Further on, I would like to briefly discuss sport, as well as the new UN leadership – something that concerns all of us. We have a good candidate to nominate, and we will try to gain your support. I hope that we will be able to discuss all these issues in a friendly atmosphere.



Vladimir Putin:

We will certainly do so. Once again I would like to emphasise that we are happy to see you and to discuss all these issues.





The source of information - http://en.kremlin.ru/events/president/news/52767
 
Old September 5th, 2016 #28
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Interview to Bloomberg



Full text of Vladimir Putin's interview to the international media company Bloomberg has been published. The interview was recorded on September 1, 2016, in Vladivostok.



September 5, 2016 - 10:30 - Vladivostok





John Micklethwait:

Mr President, thank you very much for speaking to Bloomberg. Here in Vladivostok we're on the edge of the Pacific and on the eve of the second Eastern Economic forum. What do you hope to achieve at it?



President of Russia Vladimir Putin:

We would like to draw the attention of our partners, of potential investors to the Russian Far East. In this sense, the Forum as an event is similar to other regional forums of this kind. Russia hosts a lot of such forums, including the International Economic Forum in St Petersburg, (usually in the beginning of summer), as well as the Economic Forum in Sochi.

The Far East is of particular significance for us in terms of this region’s priority development. Over the last few years, let us say even over the last decades, we were faced with many problems here. We paid little attention to this territory although it deserves a lot more of it, because it concentrates great wealth as well as opportunities for Russia’s future development. Not only for Russia alone, but also for the development of the entire Asia-Pacific region (APR), because this land is very rich in natural and mineral resources.

When we talk about the Far East we usually mean the Far East itself, including Primorye Territory, Khabarovsk Territory, Kamchatka, and Chukotka, as well as Eastern Siberia. All this area contains tremendous resources, including oil and gas, 90 percent of Russian tin, 30 percent of Russian gold, 35 percent of forest, 70 percent of Russia’s fish is harvested in the local waters.

This is a region with a substantially developed transport and railroad infrastructure. In recent years we have been actively developing road connection. There is also a huge potential for developing the aviation and space industries. As you might have noticed we have launched a new Russian spaceport in one of the Far Eastern regions. As I have already said, the aviation industry, including combat air force, has been traditionally developing here. It is the Russian Far East where the SU aircraft, which are well known worldwide, are manufactured.

Finally, we are resuming the manufacturing of sea vessels here, first of all for civilian purposes. Just earlier today I witnessed the commissioning of one of the most promising sites of this kind.

And this is also a good opportunity for humanitarian exchanges with our neighbours. Our intention is to develop music, theatre and exhibition activities here. Just recently Mr Gergiev, a distinguished Russian musician and conductor, held his concerts here. We are going to set up a branch of the St Petersburg Mariinsky Theatre here. We are also planning to open local branches of the Hermitage Museum and the Vaganova Academy of Russian Ballet.

As you can see, we are now present in the building of the Far Eastern Federal University. I am sure you too have had a chance to assess the size of the University – the number of foreign students studying here is already in the thousands; there is also a great number of foreign professors. We would like to see science and higher education developing here, so that it could become one of the major research centres in the entire APR system. Undoubtedly a lot remains to be done here, but given the labour market demand, the relevance of such a university is undeniable.

In addition to everything that I have already mentioned, there is another domain that we consider relevant and having good prospects – marine biology. For many years this region has been home for one of the leading institutes of the Russian Academy of Sciences, the Institute of Marine Biology. You know, we are launching a new centre here; we have built an oceanarium on its premises, which is supposed to be not only a public place where people, I am sure, will enjoy the wildlife, but also part of the Institute of Marine Biology. A very interesting and promising cluster has formed here, and we would be happy if our potential investors, our counterparts from abroad, first of all those from the Asia-Pacific region, knew more about it.



John Micklethwait:

One of the guests who have coming is Shinzo Abe. There seem to be the beginning of a political deal: you might give up one of the Kuril Islands in exchange for greater economic cooperation? Are you opened to a deal of that sort?



Vladimir Putin:

We do not trade territories although concluding a peace treaty with Japan is certainly a key issue and we would like to find a solution to this problem together with our Japanese friends. Back in 1956, we signed a treaty and surprisingly it was ratified both by the Supreme Soviet of the Soviet Union and the Japanese Parliament. But then Japan refused to implement it and after that the Soviet Union also, so to say, nullified all the agreements reached within the framework of the treaty.

Some years ago our Japanese counterparts asked us to resume the discussions of the issue and so we did meeting them halfway. Over the passed couple of years the contacts were practically frozen on the initiative of the Japanese side, not ours. At the same time, presently our partners have expressed their eagerness to resume discussions on this issue. It has nothing to do with any kind of exchange or sale. It is about the search for a solution when neither party would be at a disadvantage, when neither party would perceive itself as conquered or defeated.



John Micklethwait:

Are you as close to a deal now as you have been since the 1960s? Is it better now than any time since then?



Vladimir Putin:

I don’t think that we are closer than in 1956 but anyway we have resumed our dialogue and agreed that our foreign ministers and relevant experts at the level of deputy ministers will intensify this work. Naturally, this issue has always been a subject of discussions between the Russian President and the Prime Minister.

I am sure that during the meeting with Mr Abe here in Vladivostok this issue will also be discussed, but finding a solution requires it to be well thought out and prepared, and I reiterate, a solution that is not based on the principles of causing damage, but, on the contrary, on the principles of creating conditions for developing long-term ties between the two countries.



John Micklethwait:

You seem to be more relaxed about territory in Asia. You mentioned the Kurils, you gave the island of Tarabarov back to China. Would you consider giving back Kaliningrad as a tribute?



Vladimir Putin:

We handed over nothing, those territories were disputed and we have been negotiating this issue with the People's Republic of China, let me stress that, for 40 years, and finally managed to come to an agreement. One part of the territory was assigned to Russia, while another part – to the People's Republic of China.

Notably, it was only possible, and this is very important, due to the high level of trust Russia and China reached in their relations by that time. If we reach the same level of trust with Japan, we might be able to reach certain compromises.

However, there is a fundamental difference between the issue related to Japan’s history and our negotiations with China. What is it all about? The Japanese issue resulted from World War II and is stipulated in the international instruments on the outcomes of World War II, while our discussions on border issues with our Chinese counterparts have nothing to do with World War II or any other military conflicts. This is the first, or rather, I should say, the second point.

Thirdly, regarding the Western part. You have mentioned Kaliningrad.



John Micklethwait:

It was a joke.



Vladimir Putin:

All jokes aside. If someone is willing to reconsider the results of World War II, let us discuss this. But then we will have to discuss not only Kaliningrad, but also the eastern lands of Germany, the city of Lvov, a former part of Poland, and so on, and so forth. There are also Hungary and Romania on the list. If someone wants to open this Pandora's box and deal with it, all right, go for it then.



John Micklethwait:

Can I ask you about the Chinese again. Back in 2013 you said you set $100 billion of trade with China as a target for 2015. But it was about $67 billion-$70 billion a year. What went wrong? I know the problems to the ruble and problems to the oil. Do you still think that target of $200 billion in 2020 is achievable?



Vladimir Putin:

Yes, I find it absolutely attainable. You have just listed the causes of this fall in bilateral trade yourself. At the first stage, we set the target at about 100 billion US dollars, and we almost got there – it reached 90 billion. So we are almost there. But we also know the reasons for the fall. These include a decline in the prices of our traditional export goods and the exchange rate difference. These are objective reasons. And you know that very well.



John Micklethwait:

Did sanctions make a difference?



Vladimir Putin:

The sanctions have nothing to do with our relations with China, because our relations with the People's Republic of China are at an unprecedented high both in terms of their level and substance. They are what we call ”a comprehensive partnership and strategic cooperation“. Sanctions have nothing to do with this. The decline in our mutual trade has objective causes, which are the energy prices and the exchange rate difference. But the physical volumes have not decreased, quite the opposite actually. They are growing.

As to our trade and economic relations with China, they are growing more and more diverse each day, something we have worked on for a long time with our partners from China. I would like to draw your attention to the fact that we have gone from pure trade in traditional goods (energy resources, such as hydrocarbons, oil and now natural gas, petrochemicals on the one hand and textiles and footwear on the other) to a whole new level of economic cooperation. For example, we are working together on space programmes. Moreover, we are developing and soon will begin the production of a heavy helicopter. We are now tracing the plan for the creation of a wide-body long-range aircraft.

Russia and China also cooperate in mechanical engineering, high-speed railway transportation, lumber processing, nuclear energy production and so on.

We have built the Tianwan Nuclear Power Plant. Two units are already operational and are showing good results. There are two more to go. So, the goal we have set for ourselves, which is to diversify our cooperation with China, is making progress.



John Micklethwait:

Just listening to you speak I wonder if you look back, you became president first back in 2000, I wonder if you look back over that period whether you think Russia has become a little bit more an Asian country and a little bit less European one?



Vladimir Putin:

I'll tell you this: it has become a more developed one. I would not draw a line between Asia and Europe. The divide lies in a different field – in the level of development. Since then, Russia's economy has become 1.7 times larger. That is a nearly two-fold growth. Russia has moved up to the fifth or sixth position in the world PPP ranking.

It is absolutely clear that ten and even less so fifteen years ago we would not have been able to respond to the sanctions that are now imposed on Russia, with countermeasures in agriculture, for example. We would not have been able to close our market to the countries making unfriendly steps against us, because we could not satisfy the demand with our own goods at that time. But now we can. That is one.

Secondly, a freer national market allows our agricultural companies to step up the production of goods inside the country. Aside from the decrease in GDP caused by a number of factors, not limited to sanctions but also related to the processes in the world economy, we are also experiencing a slight decline in the industrial sector. However, the agricultural sector is growing steadily at a yearly pace of 3 percent, and it will be 3 percent or even more significant this year and the next year as well.

So, if we look at was has changed in the last 15 years, we'll see that a lot has been done. Even more importantly, the Russian economy as a whole has been put on a sound footing. In 2000, we had 12 billion in gold and foreign currency reserves and, if my memory serves me well, a foreign debt of 20 billion.

Today, Russia is among the top ten countries with the best foreign debt/gold and foreign currency reserves ratio. As of 1st August 2016, the volume of our gold and foreign currency reserves amounted to 395, that's almost 400 billion USD, and the foreign debt stood at just about 13 percent of GDP. This ratio is among the most favourable in the world.

Back in 2000, 40 million people, a third of the country, were living below the poverty line. Since then, this number has dropped almost three times but has been, unfortunately, growing a little bit due to the economic difficulties and the overall fall in the household income. Still, it is an incomparably lower number than 15 years ago. Pensions are several times larger now, real salaries have grown substantially; they are now nothing like back then. These are the factors that helped us achieve what we have fought for and what lays the foundation for a successful development of any State, namely the demography.

In the early 2000s, it seemed to us that we could not reverse the negative demographic trend. The Russian population was decreasing year after year by – I will now tell you a horrifying number – nearly one million people, 900,000 to be precise. Throughout the last three years, we have witnessed natural population growth, we have the lowest…



John Micklethwait:

You're encouraging romance.



Vladimir Putin:

We have the right to say and be proud that we now have the lowest rate of infant mortality and the lowest maternal mortality in our contemporary history. As far as I know, this was not the case in the Soviet times.

We set ourselves the goal to increase life expectancy. Over the last five years, it has been growing a lot faster than we expected. All these facts taken together allow us to believe that we are on the right track.

Certainly, we still can and have a lot to do and we might have achieved greater results, but on the whole we are doing what has to be done.



John Micklethwait:

You've just talked about the Russian economy, we'll come back and I ask you about reserves in just a second. But it struck while you're talking in detail in all the ways Russia got stronger. You're about to go to G-20 you have studied and watched the west many times. You've been to G-20 more than any other leader at the moment. Have you ever been to G-20 where the west is seen more divided, more in doubt, more distrustful in itself. Look at all those things happening in Europe – you look at migration, you look at Brexit, you look at America with all the election and the problems with that. Does the West seem particularly disunited at the moment to you. How do you explain that?



Vladimir Putin:

There are many issues in the global economy in general and in the western economy as well: population ageing, drop in labour productivity growth rates. This is obvious. The overall demographic situation is very complicated.

Then, the specialists themselves, and you are one of the best specialists in this area, probably believe that in the course of EU expansion, for example, some elements concerning the readiness of some economies to enter the Eurozone have not been taken into account.

It is very difficult to enter a single currency zone having fairly weak economic parameters and maintain a favourable state of the economy, not to mention positive growth rates. We have witnessed it not only in Europe, but for example in Argentina (nearly 10 years ago or more), when they tied the national currency to the dollar and later they did not know what to do about it. It is the same with entering the Eurozone…



John Micklethwait:

Do you expect the euro to survive?



Vladimir Putin:

I hope so, because we believe in the fundamental principles of the European economy. We see that leaders in Western Europe (there are some debates of course, we also see that and analyse it all) stick to, I cannot say right or wrong ones, it always depends on someone's view, but I think, very pragmatic approaches in addressing economic issues.

They do not misuse financial instruments, financial injections, but, first of all, seek structural change. This is urgent for our economy as well, maybe even more urgent bearing in mind the problem that we cannot yet deal with, namely the prevalence of the oil and gas sector in the Russian Federation and, as a result, dependence on revenue from oil and gas.

This is also evident in Europe, not the dependence on oil and gas, but the fact that structural reforms are long overdue, and I think that the leading economies are very pragmatic and efficient in addressing the issues facing the European economy. That is why we keep approximately 40 percent of our gold and foreign currency reserves in euros.



John Micklethwait:

You expect that Europe won't keep the existing membership, and they going to lose more like they lost Britain?



Vladimir Putin:

You know, I do not want to answer your provocative question, though I understand that it may be interesting.



John Micklethwait:

Come on, many, many times you've criticized Europe…



Vladimir Putin:

Well, yes, I have criticized it, but I repeat: we keep 40 percent of our gold and foreign currency reserves in euros, we are not interested in the collapse of the Eurozone, but I do not rule out the possibility of decisions being made that would consolidate a group of countries equal in economic development and this, in my opinion, will lead to a consolidation of the euro.

But there can also be some interim decisions in order to keep the present number of members of the Eurozone unchanged. This is not our job, but we always follow the actions of our European partners closely and we wish them luck.

Now, regarding that criticism you spoke about. I have criticized foreign policy, but that does not mean that we should agree with everything. Indeed, we criticize a lot of things, we think that our partners make many mistakes (may be we make mistakes too, no one is immune to making mistakes), but as for the economy, I repeat that, in my opinion, the European Commission and the leading European economies are acting very pragmatically and are on the right path.



John Micklethwait:

Can we talk about the Russian economy. I know you will say that exchange rate a lot depends on central bank and the exchange rate is set by the market. I saw back in July, on July the 19th when the ruble was 62,8 with the dollar you said the ruble is too strong, you criticized that. And a ruble is now come down to 65 to the dollar. Is it weakened enough to make you happy? Or do you want to see it weakening further?



Vladimir Putin:

I did not criticize the Central Bank's position. I have always thought and I still think that the Central Bank should act independently. Indeed, it does, you can take my word. I do not interfere in the decisions of the Central Bank and I do not give instructions to the Bank management or to its head.

The Central Bank observes the economic situation and, of course, I keep in touch both with the managers and the President of the Central Bank, but I never give instructions. If I said that the ruble had become too strong, I did not say that the Central Bank's position was wrong, I said that it added pressure to export‑oriented sectors of economy. We all understand that this is true. When the ruble is weaker, it is easier to sell, to produce here for a cheap ruble and sell for an expensive dollar, get revenue in dollars and then exchange it for rubles and get a bigger income. This is simple.

But if we speak about fundamental things, regulation of the rate is actually the function of the main regulator, namely the function of the Central Bank. And it should think of how the economy and industry react, but also of its fundamental tasks in order to ensure the stability of the rate.

The stability of the rate is the main issue and the Central Bank manages to ensure it one way or another. This was finally achieved after the Central Bank switched to a floating national currency exchange rate.

The Central Bank should take into account other things as well: the stability of the bank system in the country, the increase or decrease of money supply in the economy, its influence on inflation. The Central Bank has a lot to handle and it is best not to interfere with its competence.



John Micklethwait:

You personally, would you like to see ruble a little bit weaker still, with their help? I know it is not you job but you made a comment before. What do you say now?



Vladimir Putin:

You know, my position is that the rate should align with the level of economic development. Because it is always about a balance, a balance of interests, and it should reflect this balance. A balance between those who sell something across the border and those who benefit from a low rate, as well as a balance between the interests of those who buy, who need the rate to be higher.

A balance between national producers, for example, agricultural producers who are interested in it. Here we have 40 million Russian citizens involved in the sphere of agriculture one way or another. This is very important. We should not forget either about the interests of the regular consumers who need the prices in supermarkets to be a little bit lower.

Therefore, let me reiterate that the rate should not meet the interests of a specific group or one or two groups, it should meet the fundamental development interests of the economy itself.



John Micklethwait:

So you are no longer complaining. I will take it that you are not too unhappy where it is?



Vladimir Putin:

I did not express any disagreement, did not complain. I simply noted that one of the groups, especially exporters, would prefer to have a weaker rouble.



John Micklethwait:

You mentioned earlier Russia used to have $500b. Now it is $400 billion. You have this target to get back to $500 billion. What you think is the realistic target? And your opinion: should the central bank be buying more dollars in order to push it back up towards $500 billion?



Vladimir Putin:

The Central Bank is constantly purchasing, purchasing and selling and vice versa – this is their job. I believe that over the last six months gold and foreign currency reserves increased by 14 percent.



John Micklethwait:

They gone back up a little bit, but they haven't been buying dollars in the same systematic way as they did once.



Vladimir Putin:

You and I know very well about the necessary level of reserves of the Central Bank as well as the purpose. We can tell the general public that the gold and foreign currency reserves of the Central Bank are not designed to finance the economy, but rather to ensure foreign trade turnover. Therefore, we need this level to be able to provide the necessary foreign trade turnover for such an economy as Russia’s for a period of at least three months. If everything stops functioning our level will be able to ensure our trade turnover using its gold and foreign currency reserves for at least six months or more, which is more than enough.

Therefore today we have an absolutely sufficient level of gold and foreign currency reserves in order to ensure economic stability and sustainable foreign trade turnover. All other issues – purchasing and selling of currency – are related to the regulation of the national currency market. However, it is still difficult to say what will be the reaction of the Central Bank and if it would lead to increasing the gold and foreign currency reserves. Let us not forget that we have two governmental reserve funds: the Reserve Fund and the National Wellbeing Fund that represent together $100 billion.



John Micklethwait:

Can I ask you about the oil price — your favourite subject. Almost two years ago you said that if crude oil fell below $80 a barrel there would be a collapse in oil production. The price is still below $50 and production hasn't stopped. Has your thinking changed on that at all?



Vladimir Putin:

If I said that oil production would collapse I was wrong. By the way, I do not remember when I said this, maybe in the heat of the moment, but I do not think I even said it, but I may just not remember it. I was saying that at a certain level of oil prices new deposits will not be explored. That is what is actually happening. However, surprisingly, our oil and gas workers (mainly oilmen) continue to invest.

Over the past year, oilmen have invested 1.5 trillion rubles, and if we take into account government investments into the development of pipeline transport and electric energy, general investments into the energy sector were 3.5 trillion rubles last year. It is a considerable amount.

Oil production, energy production are growing, though the latter has gone down by about 1 percent here, I believe… By the way, we occupy the first place in the world in gas export, accounting for 20 percent of the world market. We are also first in the sphere of liquid hydrocarbons export.

Though we still come first in the sphere of gas export, national production has diminished due to the increasing volumes of hydrogenation for the electric power industry and therefore there is a lower need for gas at thermal power plants. This is the result of the restructuring of the situation at the national energy market. In general, Gazprom is doing well and is increasing export in its traditional partner countries.



John Micklethwait:

You're going to talk to Saudi Deputy Crown Prince Mohammed bin Salman at the G-20. Would you still be in favor of the production freeze if the Saudis want that?



Vladimir Putin:

As far as I know, Mr. Salman is deputy Crown Prince, but this is not so important. He is a very active statesman, we have really warm relations. This is a person who knows what he wants and can achieve his goals. At the same time I consider him to be a reliable partner with whom one can negotiate and be sure that agreements with him will be implemented.

However, it was not us who refused to freeze oil production; our Saudi partners changed their point of view at the last moment and decided to slow down the adoption of this decision. I would like to reiterate our position, it remains the same. Firstly, in my conversation with Prince Salman on this issue I will reiterate our position: we think that this is the right decision for the world energy sector.

Secondly, it is well known what we were arguing about: if we freeze oil production, everybody should do so, including Iran. But we understand that the Iranian position is very bad because of the well-known sanctions against that country, and it would be unfair to leave it on this sanction level. I believe that in fact it would be economically reasonable and logical to reach a compromise, I am sure that everybody understands this.

This issue is not economic but political. I hope that all market participants interested in maintaining stable and reasonable world energy prices will finally make the right decision.



John Micklethwait:

So you would be in favor of a production freeze but giving Iran a little bit of leeway to do what they need to do?



Vladimir Putin:

Yes.



John Micklethwait:

I want to jump back — all these things affect budget. You have budget deficit, you just given some more money which you mentioned earlier to pensioners. You will have to borrow sometime. Are you likely to go this year? And will you go to the domestic market or will you go to the international market to borrow money?



Vladimir Putin:

There is no such need at the moment. We do not have to borrow in the external market, but we have used and are using this traditional instrument in international financial relations. We have issued financial instruments in the past, and there is a strong demand for them, it is simply unnecessary now. Given the cost of borrowings and the $100 billion in Government reserves, there is no reason for us to borrow. We should review the situation carefully. Besides, borrowings are possible, but we must understand what is more profitable at this point. This is one point.

The second. The deficit. Last year the federal budget deficit was 2.6 percent. I think you would agree that this is a rather acceptable level. This year, we expect a slightly higher deficit of about 3 percent, maybe a little more than 3 percent. It is also an absolutely acceptable level. But what are we seeking to achieve? We are seeking to optimize budget spending. I believe that even in such uneasy times we employ a very pragmatic approach towards economic and social issues. We do address major social problems and deliver on our promises to our people.

The Government has just announced a four percent indexation of pensions. There has been no indexation in the second half of the year, but early next year we will make a one-time payment of 5,000 rubles to each pensioner, which is actually comparable to the indexation. We act in a pragmatic and careful manner. We reduce spending on budget items that do not constitute a priority. We are not going to waste our reserves and burn them for any political ambitions. We will act very carefully.

I hope that there will be no particular need for us to attract external funding. It is worth noting that despite the fact the turnover is smaller now we are still maintaining a trade surplus. I believe that we now have a trade surplus of $45 billion for the first half of the year.

Year-on-year inflation has dropped several-fold. Several-fold! Year-on-year it was about 10 percent compared to last August, but now it is only a slightly more than 3 percent. The unemployment rate of 5.7 percent is also acceptable. Our microeconomic indicators are stable and it gives me reason to believe that we will calmly and steadily pass this uneasy period in our economy, which has already no doubt adapted to the current situation.



John Micklethwait:

Can I ask you about privatization and oil again? The privatization of Bashneft – you've delayed it. And now as we reported Igor Sechin of Rosneft just come forward and said he would like to buy the half of it for $5 billion. You have always said that you don't want for big state companies to be buying the newly privatized ones. You wouldn't allow that, would you?



Vladimir Putin:

You know, you have just mentioned state companies. Strictly speaking, Rosneft is not a company. Let us not forget that BP has a stake in Rosneft and BP is a British company. You are a subject of the UK, are you not? It means that you also to a certain degree…



John Micklethwait:

You may have more control over Rosneft than Theresa May has over BP.



Vladimir Putin:

We may have more control, but my point is that, strictly speaking, it is not a state company. I think that this is an obvious fact, as a foreign investor has a 19.7 percent stake in it. However, given the fact that the State has a controlling stake in the company, it might not be the best course of action when one company under State control buys another one fully owned by the State. This is one point.

Another point is that ultimately, as far as the budget is concerned, of major importance is who offers more money during the bidding that must be organized as a part of the privatization process. In this sense, we cannot discriminate against any market participants, not one of them, but this is not relevant at the moment, as the Government has decided to postpone the privatization of Bashneft.



John Micklethwait:

That's gone. But on the question on privatization, you said back in 2012 that you wanted to expand privatization, you've had a difficult time on this. Why has that not worked? Is there a case, why does Russian government need to own 50 percent of these companies? May be you could sell more?



Vladimir Putin:

There is no need for the Russian state to hold such large stakes and we do intend to put our plans into practice. It is not about whether we want it or not, it is about this being practical or not and the best timing. In general, it is practical from at least one point of view – from the point of view of structural changes in the economy. It is true that the role of the state in the Russian economy may be too big today, but from the fiscal standpoint, it is not always practical to do this in a falling market. That is why we are careful, but our trend in the privatization process and gradual withdrawal of the state from certain assets remains unchanged.

By the way, you have mentioned Rosneft. We are actively preparing a partial privatization of Rosneft itself. It is the best proof that our major plans have remained unchanged. Another example would be one of the largest Russian diamond mining companies in the world. We are privatizing part of our stake in that as well.



John Micklethwait:

ALROSA?



Vladimir Putin:

ALROSA. We are working in other areas as well, so there are no radical changes to our position. It is not the case when we have to, as we say, make a lot of fuss about it. In other words, we do not have to be obsessed with privatizing immediately and at any cost. No, we will not do it at any cost. We will do it in a way that ensures maximum benefit for the Russian state and the Russian economy.



John Micklethwait:

So you would do Rosneft this year, you would sell those shares in Rosneft this year you hope?



Vladimir Putin:

We are getting ready for the deal this year. I do not know whether the Government will be able to get ready to conduct this transaction together with the management of Rosneft itself, whether the appropriate strategic investors will be found. And I believe it is about such investors that we should talk. But we are getting ready, and it is in the current year that we are planning to do this.



John Micklethwait:

And do you, do you again just to push you on that 50 percent, would you be happy in a world where the Russian state had less than 50 percent of these big companies?



Vladimir Putin:

We do not consider this disastrous at all. You know, I remember that when foreign shareholders, foreign investors, got 50 percent in one of our companies, I will not name it now, their contribution to the federal budget and tax payments increased several times over at once and the company's efficiency did not decrease. Therefore, in terms of the interests of the state, the ultimate interests of the state, in terms of its fiscal interests, we have a positive experience, most likely, not a negative one.



John Micklethwait:

Can I push you on this a little bit? Because when I look on your record over all these years, in foreign policy you're been very aggressive, very decisive, very bold and everyone agree on that. On economic policy you seem a little more timid.



Vladimir Putin:

I do not agree with you. I have acted firmly but not aggressively.



John Micklethwait:

Yes, firmly, rather.



Vladimir Putin:

I have acted in accordance with the circumstances.



John Micklethwait:

But on the economy on the contrast you've been slightly more, you've been less decisive in terms of pushing reforms. If you look at countries like China and Vietnam, you know, they have changed their economies completely. Russia, as you've said, is still dependent on oil, still dependent on a few companies, still run largely by the same people. Do you think that's been failing through out the years that you have not reformed enough?



Vladimir Putin:

No, I do not think so. Moreover, look, we have carried out a land reform, and it was hard to imagine that ever being possible here in Russia. Note that, unlike many countries in the world with a well-developed market economy, we have, say, the oil sector that is almost completely privatized. Here you have named the Rosneft and Bashneft companies, all the rest are private companies. And look what is happening in this sector in Saudi Arabia, in Mexico and in many other oil-producing countries.

Why do you think that Russia is less advanced in regard to these reforms? Another thing is that, with the high oil price, it is very difficult to reorient economic actors from the sectors where they get big profits and to encourage them to invest money and resources in other sectors.

To that end, we need to carry out a whole set of measures, so we are gradually doing that. Regrettably, may be, the effect is not as powerful as we would like it to be — now I finish in a second, patience — but still there is a result.

See, the year before last, the budget received 53 percent from oil and gas revenues, it was the year before last — 2014, in 2015 it was 43 percent and this year it will be about 36 percent. So, structural changes also occur. And it is not just the price but also economic growth, the growth of specific production sectors. For example, we currently see a 0.3 percent increase in industrial production in the country in general, it is small but it is still in place. And, say, in the Far East, where we are now, the growth of industrial production, industrial in particular, is 5.4 percent.



John Micklethwait:

Let me give you an example. You've recently made changes on the political side within your administration. If I look at the business, if I look at a company like Gazprom, for instance, I just checked in dollar terms, Gazprom is worth less than a fifth of what it was ten years ago, and it's fallen from being in top-10 companies in the world to 198th. And you've had the same manager, running it for 15 years — Alexey Miller — you've now given him another 5-year contract. What I'm saying, you're not as tough on business people who are running the oil side as you might be on other people. Why have you put up with this? You're famously efficient man.



Vladimir Putin:

Look, Gazprom is clearly undervalued, it is absolutely obvious. We are not going to sell it yet and it is connected with the peculiarities of the Russian economy, social sphere and the Russian energy sector. One of the functions of Gazprom is to ensure the smooth operation in the country during the autumn-winter peaks and to supply Russia's large energy sector, and it copes with this task. I think that the assessments of Gazprom today are quite speculative and we have absolutely no worries and cares about that.

We know what Gazprom is, what it is worth and what it will be worth in the coming years, in spite of, say, the development…of gas in the United States or somewhere else in the world. Pipe gas will always be cheaper. And Gazprom is now increasing its exports to the countries of its traditional partners. In Europe (see the reports of Gazprom there), especially in recent months, the sales have been growing.

I am sure, that will continue in the future. Why? Because in the near future, despite the development of alternative energy, after all, if we look at the economic component and the requirements to environmental standards, there is no other primary energy source, except for gas, in the world. It could be only nuclear power. But here, there are also many problems and opponents of nuclear power. Regarding gas, there are no such opponents. But there is a country that is undoubtedly the leader in gas reserves. This is our country, the Russian Federation. And Gazprom fulfills all the functions assigned to it, assigned to its management.

There are, of course, questions and there are problems. We see them. I know that Gazprom's management is taking the necessary steps in order to solve these problems; it is fighting for its interests in the world markets. It is another question whether it is being done well or badly. Many criticize Gazprom, saying that it should have been more flexible and should have introduced floating prices depending on the current situation in the economy. However, the gas business is very peculiar. It is not even the trade in oil.

This is a separate business that is connected with large investments in production and transportation. And it means that the production structures are to be sure that they will sell and sell at a certain price.

You can, of course, negotiate with partners on some floating limits depending on some conditions. I think it may also be a subject of negotiations, but if, for example, our European partners want to ensure their competitiveness in global markets, they should ultimately be interested in long-term contracts with Gazprom.

Look, when the prices were high, Gazprom faced a lot of complaints that something should be done in order to cut a little the highest price. Oil prices currently dropped and gas prices depend on oil, but nobody thinks about increasing gas prices, everybody is fine with that. It means that buyer and seller have natural contradictions. But there is also some space for them to reach an agreement in order to minimize their risks. I suppose they can talk about it.



John Micklethwait:

I know you're a generous man, but if you had a general who had lost 80 percent of his army, you might not keep him as a general. Gazprom still has the export monopoly, you wouldn't think of taking it away from them, given that performance, because it is worse than other gas companies.



Vladimir Putin:

It's a different case. Speaking about the general, in this context he lost nothing, it was just transferring to reserves which may be drawn upon and used any time.



John Micklethwait:

The G-20, this one will be the last times when you'll see Barack Obama. And as you well know there is American election on the way and as you well know there is a choice in that between Hillary Clinton and Donald Trump. Who would you rather have at the other end of the telephone if there is geopolitical situation — Donald Trump or Hillary Clinton? Do you have a feeling at all?



Vladimir Putin:

I would like to deal with a person who is able to take responsible decisions and implement the agreements reached. The name does not matter. Of course, this person is to have the trust of the American people, then he or she would not only have the wish but also the supported political will to implement all these agreements.

We have never meddled in the domestic affairs of any state and we never will. We will keep a close eye on what is happening and wait for the election results and after that we will be ready to work with any Administration given that it wants to work with us.



John Micklethwait:

Can I just push you on that? Back in 2011 you accused Hillary Clinton of seeking to trigger the protests that you were facing in Russia at the time. And by the contrast when I look at some of things that Donald Trump said about you back in 2007 that Putin is doing a great job, in 2011 he praised your no-nonsense way, the next year he said you is new best friend, next year he said you're outsmarting the Americans, he said you have good ratings to get…

And I can go on like that. And you are really telling me that if you have a choice between a woman, who you think may've been trying to get rid of you, and a man, who seems to have this great sort of affection to you, almost bordering on the homoerotic, you not going to make a decision between those two, because one of them would seem to be more favorable towards you?



Vladimir Putin:

You know, actually I have already answered your question, but I can put it differently, say it in other words: we are ready to deal with any President, but of course, and I mentioned that, it depends on the readiness of the future Administration. We always welcome when somebody says he or she is ready to work with Russia. But if anybody, just like you said, (inaccurate translation possibly), wants to get rid of us, then this is a different approach. However, we will get over it; you never know who is going to lose more with such an approach.

Here is the thing: I have seen several times that anti-Russian cards are being played during domestic campaigns in the United States. I find this approach very short-sighted.

At the same time we receive different signals all around that in fact, everything is fine. The same situation occurred with the previous administrations during the election campaigns, claims that everything will be restored later. I do not think it matches the level of responsibility shouldered by the United States. I suppose it should be more sound, calm and balanced.

As for the criticism we receive, you know, even Mr. Trump's team criticize us. For instance, one of the participants or members of his team claimed that Russia was giving money to the Clintons through some funds and that in fact Russia is controlling the Clinton family. This is nonsense. I do not even know where Bill Clinton delivered his speech and I know nothing about any funds. Both parties simply use it as a tool in their internal political contention, and I am sure it is a bad thing. But again, we welcome the fact that somebody expresses readiness to work with Russia whatever the name of that person.



John Micklethwait:

Very quickly: the other accusation you've faced or heard a lot is people connected with Russia or backed by Russia were the people who hacked into the Democratic Party database. Is that, you would also say that is completely untrue?



Vladimir Putin:

I know nothing. There are a lot of hackers today, you know, and they perform their work in such a filigreed and delicate manner and they can show their “tracks” anywhere and anytime. It may not even be a track; they can cover their activity so that it looks like hackers operating from other territories, from other countries. It is hard to check this activity, maybe not even possible. Anyway, we do not do that at the national level.

Besides, does it really matter who hacked Mrs. Clinton’s election campaign team database? Does it? What really matters is the content shown to the community. This is what the discussion should be held about. There is no need to distract the attention of the community from the essence of the subject substituting it with secondary questions dealing with the search of those who did it.

I would like to repeat: I know absolutely nothing about it, and Russia has never done anything like this at the State level. Frankly speaking, I could never even imagine that such information would be of interest to the American public or that the campaign headquarters of one of the candidates – in this case, Mrs. Clinton – apparently worked for her, rather than for all the Democratic Party candidates in an equal manner. I could never assume that anybody would find it interesting. Thus, in view of what I have said, we could not officially hack it. You know, it would require certain intuition and knowledge of the U.S. domestic policy peculiarities. I am not sure that even our experts from the Ministry of Foreign Affairs have such intuition.



John Micklethwait:

Do you not think this is sort of the time when everyone should sort of come clean about it? Russia tries to hack America, America tries to hack Russia, China tries to hack America, China tries to hack Russia? Everyone tries to hack each other.

One of the purposes of the G-20 is to come up with a new set of rules so this can become a more ordered version of foreign policy when everybody is doing this. Allegedly.



Vladimir Putin:

I believe that the G20 should not interfere, because there are other platforms for that. The G20 was established as a forum to discuss, first and foremost, world economic issues. If we load it with…

Of course, politics affects economic processes, this is obvious, but if we bring some squabbles, or not squabbles, rather, some matters that are really important but relate purely to world politics, we will overload the G20 agenda and instead of addressing such issues as finance, structural economic reforms, tax evasion and so forth, we will engage in endless debates concerning the Syrian crisis or some other global challenges, of which there are many, or the Middle East problem. We should find other platforms, other forums for that, and there are plenty of them, including, for example, the UN and the Security Council.



John Micklethwait:

Can I ask one last question on Donald Trump. Some people say that he is too volatile to be an American president. You would be happy with him as American president in the same way as you would be happy with Hillary Clinton in that role.



Vladimir Putin:

We cannot decide for the American people. After all, despite the scandalous behavior of one and, by the way, the other candidate (they are both scandalous in their own ways), they are smart, they are really smart and they are aware of the leverages they should use to make the voters in the United States understand them, feel them and hear them.

Donald Trump is targeting the traditional Republican voters, the average person with an average income, the working class, a certain group of entrepreneurs and those people who embrace traditional values.

Mrs. Clinton is focusing on a different part of the voters trying to influence them in her own way as well; so they attack each other and in some cases, I would not want us to follow their pattern. I do not believe they are setting the best example. But this is the political culture of the United States, which one should accept as is. The United States is a great country and it deserves non-interference and no third-party comments.

Answering your question for the third time, I can tell you that we will work with any Administration and with any President in whom the American people have placed their trust. That is, of course, if they wish to cooperate with Russia.



John Micklethwait:

Let me ask you about other country. Another person you'll meet at G-20 Theresa May. Britain has ended up in the same situation as Russia, it is in Europe, but not, likely not to be in European Union. Will you approach them with a free-trade deal?



Vladimir Putin:

Well, I would like to finish my answer to the previous question. You have been working as a journalist for a long time. You are quite knowledgeable and you understand all the threats that may arise from a tense international environment, don't you? Especially if there is tension between major nuclear powers of the world. We all understand this.

Of course, you are the one asking me questions. It is you who is the interviewer, not I. However, let me ask you a question: do you want another Cuban Missile Crisis? Or don't you?



John Micklethwait:

No, nobody does.



Vladimir Putin:

Of course, nobody does.



John Micklethwait:

But that is one reason why I asked about Donald Trump because he is seen as a more unpredictable force than Hillary Clinton.



Vladimir Putin:

And you too would prefer that Russia maintained good relations with both the United Kingdom and the United States, wouldn't you? I would prefer it as well. If anybody in the U.S. or in the United Kingdom says: ”I would like to establish good partnership relations with Russia“, then both of us, you and me, should welcome that. So should people like me and people like you. However, we have no idea yet what would actually happen after the elections. That is why I am telling you that we will work with any President designated as such by the American public.

As for the United Kingdom, we have a meeting scheduled with the Prime Minister in China on the G20 sidelines. We had a telephone conversation. Unfortunately, the relations between the United Kingdom and Russia have not developed in the best possible way; however, it has never been our fault. It was not we who decided to discontinue relations with the United Kingdom; it was the UK who preferred to ”freeze“ our bilateral contacts in various fields. If the United Kingdom considers it necessary to start a dialogue on certain issues, we are ready for that, we are not going to pout or sulk. We take quite a pragmatic approach towards cooperation with our partners and we believe that it would be beneficial for both our countries.

We were speaking about our largest oil company Rosneft, and I recalled in the beginning that almost 20 percent of it (19.7) belongs to BP. Who’s company is that? British Petroleum, isn't it? I suppose that is not bad. I have to tell you that British Petroleum’s capitalization is significantly related to the fact that it owns more than 19 percent of Rosneft, which has vast oil reserves both in Russia and abroad. This has its impact on the company's stability as well.

Thus, BP found itself in a difficult situation after the tragic events in the Gulf of Mexico. We did everything we could to support it. Britain is interested in this, isn't it? I think it is. The same is true of other areas.

We are marking the anniversary of the Arctic convoys. You know about that, don't you? We really do consider members of the Arctic convoy to be heroes. This is true. I am not saying this as a fashion of speech. Indeed, that is exactly what they were. We know that the conditions in which they fought were appalling. Time and again they faced death in the name of a common victory and we remember that.



John Micklethwait:

Do you think Britain might be more compliant or more likely to do a deal with Russia now it is outside or going to leave the European Union?



Vladimir Putin:

Britain is leaving and has de facto left the European Union; however, it has not withdrawn from its special relationship with the United States and I believe that the UK's relations with Russia depend on Britain's special relationship with the United States rather than on its presence in or absence from the European Union. If Britain pursues a more independent foreign policy, it might be possible then. And if it is guided by commitments to its allies and considers this to be of a bigger national interest than its cooperation with Russia, so be it.

After all, this is not our choice; this is the choice of our British partners, the choice of priorities. Anyhow, we obviously understand that, being a United States' ally and having a special relationship with it, the UK in its relations with Russian has to make an allowance for the opinion of its partner ‑ the U.S. We take this reality as a given fact, but let me underscore once again that we will be ready to do as much as Britain will be ready to do in order to resume our mutual cooperation. This does not depend on us.



John Micklethwait:

Can I ask you about one last person in the G-20. President Erdogan. You didn't protest that much when Turkish tanks rolled across the Syrian border the other day. Why? Do you think Turkey has now moved closer to your idea that the future of Syria has to involve President Assad staying in some way or have you changed your mind about President Erdogan. A little bit ago you were complaining that you were stabbed in the back and with the problems to do with the jet being shot down. Has something changed in Turkey in terms of what you can see?



Vladimir Putin:

First, we acknowledge the importance of Turkey's apologies for that incident and for the death of our people, it gave them in a straightforward manner without any reservations and we appreciate this. President Erdogan did so and we witness genuine interest of the Turkish President in restoring the country's relations with Russia on a full-scale basis. We share a lot of interests in the Black Sea region, on a global scale and in the Middle East.

We expect to be able to begin a constructive dialogue; we have quite a number of major energy projects, for example, the well-known Turkish Stream. I think we will finally carry it out, at least its first stage aiming to broaden transportation capabilities and increase supplies to the Turkish domestic market, but also potentially providing the European partners with the possibility of transportation if they wish so and if the European Commission supports this idea.

We have got a large project to build a nuclear power plant on unique terms and conditions. They include several components: we give credit, possess and operate. These unique features give us grounds to believe that this is a feasible project given the arrangements on economic parameters that are built on the electricity price per kilowatt-hour, as well as that this project will be cost-effective for both sides.

Apart from other things, though, as I have already said, we share the objective of reaching an agreement on the regional challenges, including the Syrian problem. I have believed for quite a while now that no issues related to the change of political regimes and power should be settled from outside.

When I hear someone say this or that president must resign, and hear that from outside the country rather than from inside, I have got a lot of questions. I am pretty sure and my confidence is based on the events of the last decade, in particular the attempts to bring democracy to Iraq or Lebanon; we see what they have come to – virtually to the collapse of statehood and the rise in terrorism.

Where in Libya do you see elements of democracy? They will probably emerge someday, I really hope so. Or take the ongoing civil war in Iraq. What is going to happen to Iraq as a State in future? So far these are just difficult questions.

Same thing with Syria. When we hear that Assad must step down (for some reason some people from outside believe so), I have a question: what will the result be? And in general, does it conform to the international law? Where will this lead to? Isn't it better to remain patient and promote the changes in the structure of the society itself and, by doing so, wait for the changes to happen naturally within the country.

Sure, this is not going to happen today or tomorrow, but probably that is what political wisdom is about – never to hustle, never to leap ahead but rather to move step by step towards structural changes, in this case in the political system of society.

As far as Turkey's actions is concerned, we keep contact with our Turkish partners. We believe that everything that contradicts international law is unacceptable. But we keep contact on political level, as well as on the level of the Defense and Foreign Affairs Ministries. I am sure we are also going to talk about this during the meeting with Turkish President Erdogan in China.



John Micklethwait:

Very quickly on Syria. Are we any closer to having Russian-American deal about how, a plan for what to happen with Syria. You've had talks recently. It seems that you've got a little bit closer, but is there any progress on that? And do you think we're closer to that than we have been?



Vladimir Putin:

You now, the negotiation process is very complicated. One of the main difficulties is that we insist, and our American partners do not object, that the so-called ”healthy part“ of the opposition should be separated from the radical groups and terrorist organizations, such as Jabhat al-Nusra.

However, we get a feeling that Jabhat al-Nusra and those of its kind are disguising themselves, using different names, but nothing changes in essence. They have begun to absorb the ”healthy part“ of the opposition, and there is nothing good about. Besides, it is no longerinternal fighting we are facing. Those fighters have come from abroad supplied with foreign arms and ammunition. Basically, our American partners agree with this, but they just do not know how to deal with it.

Nevertheless, despite all these difficulties, we are on the right track. I should say that Secretary of State John Kerry has done tremendous work. It is astonishing how he manages to be so patient and persistent at the same time. No matter what, I believe we are moving in the right direction, and I do not rule out that, any time soon, we will be able to reach consensus on some issues and share our agreements with the world community. It is too early to speak about it, but, as I have already said, I think we are moving in the right direction.



John Micklethwait:

If you look back over all the time you've been president, you could argue the relationship with the West. All these problems to do with the trust and we can go through each of the individual conflicts. But when you look back over that period in the way that relationship with west has not always worked , do you think there are things looking back you would have done differently if you would known about it?



Vladimir Putin:

No, there is nothing I would have done differently. I think it is our partners who should have done many things differently. When the Soviet Union ceased to exist we welcomed our Western partners with open arms. Just remember what it took us to disclose our wiretapping systems in the U.S. Embassy in Moscow. Nothing like that was done in return. You think CIA does not have any taps listening to us? Of course it does. Moreover, it started working even harder in that respect.

We, for instance, put an end to the flights of our strategic aviation along the U.S. border, while the United States never did so. We conducted no flights for ten years, but the United States never stopped, they kept flying. Why? We said we were ready to create a new system of European security with the participation of the United States. Instead, NATO began to expand, moving closer to our borders: one step, then another one.

We said we needed to address the issues concerning the anti-ballistic missile systems of missile defense, preserving or updating the Anti‑Ballistic Missile Treaty. The United States unilaterally withdrew from the ABM Treaty and launched an intensive construction of a strategic ballistic missile defense system as part of their strategic nuclear forces transferred to the periphery, and started constructing missile deployment areas in Romania and, subsequently, in Poland.

Initially, as you remember, it was done with the reference to the Iranian nuclear threat, but then an agreement with Iran was signed, including by the United States. The agreement has already been ratified, so there is no more threat, however, the construction of the missile deployment areas is still ongoing. Question is: against whom? Back then we were told, ”It is not against you“. We responded, ”But then we will have to modernize our strike systems“. ”Do what you want, we will think it is against somebody else“. So that is what we are doing. Now, when we have made some progress, our partners have begun to worry, ”How come? What is going on over there?“ Why did they give us such an answer back then? Probably because nobody believed we were capable of doing this.

In the early 2000s, given the total collapse of Russia's defense industry and, frankly speaking, low, to put it mildly, low combat capability of the Armed Forces, nobody could even think that we would manage to recover the combat potential of the Armed Forces and to build the national defense industry all over again. Observers from the United States (you know this, right?) were present at our nuclear weapons production facilities. They were literary there, at the plant, we had that level of confidence. And then followed those moves – first, second, third, fourth. We had to respond somehow, you know. They keep telling us, ”It's none of your business, it doesn't have anything to do with you, it's not against you“.

Not to mention a very sensitive period in our history – the traumatic events in the Caucasus and the Chechen Republic. As a journalist, you should know what was the reaction of the Western political establishment and the media. Did they support Russia's legitimate authorities in their efforts to restore and strengthen the statehood? No, quite the opposite, they supported separatism, and, in fact, terrorism. Everybody was turning a deaf ear to the fact that there, side by side with fighters and separatists, was fighting Al-Qaeda. We were told, ”Do not worry, we are just concerned about the development of democracy in your country“. Thank you very much for such care! But still, our attitude is positive, we understand the logics of political and geopolitical struggle, and we stand ready to cooperate if our partners are ready for such cooperation.



John Micklethwait:

If I had to look at the West and to sum up where they think, their side of the argument would be, that they, I think, that the root of their distrust is the idea that they think that you want to expand Russia's zone of influences, in some case geographically, but also the very least to control the countries on your border. And on the moment, the main area of nervousness on that is the Baltics — Estonia, Lithuania, Latvia. Would you be able to.. You talked about the trust.. Would you be able to say something that would give them reassurance on that count?



Vladimir Putin:

You see, I believe that all sensible people who are involved in real politics understand that references to threats posed by Russia to, let us say, the Baltic States are absolute non-sense. Do you think we are going to start a war with NATO? How many people are there in the NATO countries? About 600 million, right? Russia's population is 146 million. Yes, we are the largest nuclear power. But do you really think we are going to use nuclear weapons to take over the Baltics? Non-sense. That's the first thing, but not the most important one.

The most important thing is that we have a vast political experience, and we are convinced that you cannot do anything against the will of the people. Nothing can be done against the will of the people! However, it seems that some of our partners fail to understand this. Thinking of Crimea, they choose not to notice that the will of the Crimean people, 70 percent of which are ethnic Russians and the rest speak Russian as their native language, was to join Russia. They prefer to ignore this. In one place, in Kosovo, the will of the people can be honored, but here – it cannot. All of this is about political games.

So, I can reassure you that Russia has been pursuing absolutely peaceful foreign policy aimed at cooperation, and will continue to do so.

As to extending our zone of influence, it took me nine ours to get from Moscow to Vladivostok. It is slightly less than it takes to get from Moscow to New York through the entire Western Europe and the Atlantic Ocean. Do you really believe we need any expansion? It is not territories we are talking about.

As for the influence, well, we do want Russia to have stronger and more tangible influence, but we want it to be absolutely peaceful and positive. What we have in mind is economic and humanitarian influence, which implies developing equal cooperation with our neighbours. This is what our foreign policy, as well as our foreign economic policy, is aimed at. There can be no doubt about it.



John Micklethwait:

I just want to use one example on the issue. You mentioned Crimea, you mentioned what happened then and back then in terms of the reassurances as you might give is that back then March 4th 2014, which is checked, three times our reporter asked you what is happening inside the Crimea, did you know anything about Russian troops, which were taking over the Ukrainian government. And you said no, knew nothing about that nor the military bases. And a year later you talked about directing operation to bring Crimea home yourself. Do you accept that sometimes you could may be said things in much clearer way when they are actually happening.



Vladimir Putin:

Of course, I do. I have repeatedly commented on these issues. It is quite simple, and I have already said that. Indeed, our military personnel were there to ensure security at the voting and referendum. If we had not done so, we would have faced a tragedy even worse than the one in Odessa when people were burned alive in the House of Trade Unions, when nationalists trapped defenseless and unarmed people inside the building and burned them alive. Such incidents would have been rampant in Crimea, so we prevented it from happening. The fact is that people came to polling stations to cast a vote voluntarily; no one would have come at gun point.

This is so obvious, that there can be no doubt about it. Just come over to Crimea, walk around, and everything will become perfectly clear to you. So, yes, our military personnel were in Crimea; but they did not even outnumber our grouping that had been present there under the treaty we had with Ukraine.

Most importantly, though, the Crimean parliament, which had been elected two years prior to the voting under the Ukrainian law, voted in favour of the referendum and later, in favour of independence. It is an absolutely legitimate representative body elected by Crimean people. This is first.

Second, the international legal framework. When the settlement of the Kosovo issue was under negotiation, the UN International Court of Justice passed a judgment that was met with applause by all Western partners. The Court decided that the settlement of independence issues did not require the decision of country's central authorities. So, we did everything in accordance with international law, the United Nations Charter and principles of democracy, which include, first of all, the free expression of peoples' will.



John Micklethwait:

One last set of questions about your legacy or your current achievements. The future.. have you yet decided if you will run in the presidential elections iof 2018?



Vladimir Putin:

We are having parliamentary elections soon, so we should wait for results. And even after that, we have almost two more years to go. So, it is quite premature to talk about it. You know, it is even harmful to talk about such things today when the world is changing so rapidly. What we should do is work hard to see accomplished all the plans and targets we have set. We should achieve the improvement of living standards, economic development, social wellbeing and national defense capacity. Depending on what we will have accomplished on these tracks, we will think about the arrangements for the presidential election campaign in 2018 and who should participate in it. I have not made my mind yet.



John Micklethwait:

Do you think Russia is getting easier to run or harder?



Vladimir Putin:

Easier than when? In the days of Ivan the Terrible or Nicholas II, or maybe Brezhnev, Khrushchev or Stalin?



John Micklethwait:

In your time.



Vladimir Putin:

I think it has become harder because, even though we face harsh criticism coming mainly from our Western partners, the internal democracy has been developing in our country. For example, there will be much more political parties participating in the upcoming elections than in previous years. This will, undoubtedly, influence the process and outcomes of election campaigns.

I mean there is a practical dimension to it. Now, looking at the rating of the leading Russian political party – the United Russia – we can see that it has slightly fallen. So, many people start to question: Is there anything wrong? What happened? Nothing happened. It is just that an active election campaign has started, so all these numerous parties participating in the election process appear on the screen, in media, in newspapers.

What is their massage? They all criticize the government. They don't offer solutions to make things better, though. Sometimes they simply say things that even laymen realize are hardly practicable or just unfeasible. However, they look good on screen, scolding and holding up to shame members of the ruling party. They don't say whether they are ready to take on responsibility for making unpopular, but in the long run necessary, decisions.



John Micklethwait:

Are you envious of the Chinese who don't have to go through these elections?



Vladimir Putin:

China has another political system, it is a different country. I am sure, you will not be happy to see one and a half billion people suffering any disruption in their society and government. So, let China have its right and possibility to decide how it should organize its state and society. Russia is a different country, with different ways and different level of political system development. It is not even about the level, it is about the quality of the political system, which is developing and getting more complicated.

As a matter of fact, I am happy about it. I want to see this system grow stronger in future, to see balance within the political system, so that it could always be effective and oriented to development.



John Micklethwait:

Would you have an exit strategy? In 2018 you would have been the longest serving president. Do you have an idea about how eventually you will leave power?



Vladimir Putin:

I either will or will not take part in the elections. If I do not, another person will be elected head of state, President of Russia. The people will decide for whom they should vote.

Yet I would like to underscore that in any case already today we (and by that I mean myself and the members of my team: the Government and the Administration of the President) should shape our vision of how the country should develop and what political, internal political and economic processes should take place. That is why we are working on a strategy to develop the economy (primarily the economy, certainly) after 2018.

I am convinced that irrespective of the way in which internal political processes develop we should offer the country our vision of its economic development. And it will be up to the next president to agree or disagree with what we have offered, to update it or to offer something completely different.



John Micklethwait:

You've just reorganized part of your government, you promoted some people, some former bodyguards and people like that. Do you think that might be the sort of area where the next leader for Russia will come? Will it come from the younger generation of people who are beginning to emerge?



Vladimir Putin:

Certainly. I believe that the next Russian leader should be a fairly young yet mature person.

As for the members of various special services and the Armed Forces, there is nothing new in what I have done. It has not been the first time when former members of the Ministry of Defense, Federal Security Service have been promoted to head our regions. The Federal Protection Service is no exception; they are just as good as the others. If a person is willing to develop, is capable of developing, and is ready to serve his country in an office with greater powers and responsibilities, and I can see that such person has potential, why not? They can work.

After all, regional leaders will also have to go through elections and put forward proposals for the people of the regions in question to judge. The people in these regions need to look at these programmes, study them, get themselves familiar with those persons. There should be certain chemistry between the leader of the region and the people that live there. People should feel their possible new leader and I believe that they have to trust such leader in order to vote for him or her, otherwise they would not vote.



John Micklethwait:

People might say there are two ways in which Russia is very difficult to rule. One is it is a very personal system, where many people vote for you rather than for party. And the other reason is Russian is still a fairly lawless place. You have things like murder of Boris Nemtsov which I know you condemned and you have brought people in, but the mastermind is still being sought. Is Russia a very very hard place to govern at the moment?



Vladimir Putin:

You know, I may assure you that it is hard to govern any country. Would you say that governing the United States is an easy task? Is it easy to address even uncomplicated matters? The Guantanamo detention camp, for example? During his first term President Obama said that he would shut it down. Yet it is still there. Why? Is it that he does not want to? Certainly he does. I am confident that he does. Yet there emerge thousands of obstacles that prevent him from resolving this issue. In fact, this is indeed awful, but that is a different story. It is hard to govern any country, even a very small one.

It is not a matter of whether the country is large or small. It is rather a matter of one's attitude to the task, of whether one takes this task responsibly.

Russia is also hard to govern. Yet Russia is at a stage when its political system and market economy are shaped. It is a complicated yet very intriguing process. Indeed, Russia is not merely a large country, it is a great country that has distinct traditions and culture. It is true, it also has distinct political traditions. It is no secret that we used to have absolute monarchy, then came the times of communist rule, the base somewhat expanded, yet to a certain extent the system of the government became even more rigid.

We started building a completely new multi-party political system only in the 1990s. This is a very complex process and there are certain stages that cannot be skipped. Our citizens should get accustomed to this, feel their responsibility when they arrive at the polling stations. They should learn to question populist solutions, deliberations or candidates' mutual accusations.

They should watch attentively and analyze what candidates have to offer. This concerns both the parliamentary and presidential elections. By the way, in countries with a presidential form of governance people often vote for the presidential candidate rather than the political party. This is true of virtually any such country, and there is nothing unusual in Russia in this context.



John Micklethwait:

Surely if you look at Chechnya and, say, the influence of someone like Ramzan Kadyrov. He has a very full reign, it does not seem if he is brought under power much. That is completely different to what would happen in say Mississippi or Tennessee. That is a different system, what is happening in Chechnya. Surely that is different. It is more lawless and it is more personal.



Vladimir Putin:

That might be viewed from a different angle. One should not forget that it was not long ago that people were openly bought and sold on the markets, members of international terrorist organizations, including al-Qaeda ruled and people were beheaded in Chechnya. We by no means have forgotten that. The very Ramzan Kadyrov that is the leader of Chechnya today fought against the Federal troops during the so-called First Chechen War. This was a very complex and large transformation, indeed, when first his father, the first president of Chechnya and then he himself realized that Chechnya's future was linked to that of Russia. This choice was not a result of any pressure, but rather their internal conviction.

I remember perfectly well my first conversations with Ramzan Kadyrov's father, first President of Chechnya. He told me bluntly – and at that time, in 1999, I was the Premier – that ''we see that the future of Chechnya can not be dissociated from Russia. Otherwise, we will become dependent on the powerful and therefore we will feel worse. But the most important thing – which I also remember very well – is that you should never betray us.''

It was a very complex situation back then. The federal centre was behaving incoherently – either it advanced or retreated, either it agreed with something or broke agreements afterwards. The Chechen people needed a consistent and clear position of the central authorities of the country. But we should not forget the transformations that these people have undergone. We have signed a treaty with Chechnya and it is fully in line with the Constitution of the Russian Federation. We have a federal State and the federal entities are granted certain rights and the example of Chechnya demonstrates that this does not destroy or ruin the country, but, on the contrary, unites it.

Of course, many things require improvement and to a large extent need to forget these tragic events of the mid 1990s and finally heal our wounds. But all this takes time.

I am sure that we will strengthen our internal political institutions and economy and I have no doubts about it. I believe that Russia has already turned the most tragic pages of its history. We will only go ahead and grow stronger.



John Micklethwait:

A personal thing. You've managed to rule Russia for 16 years. If you look at the chief executives and the business people who tune in to Bloomberg and watch it, very few of them last longer than 5–6 years, what advice would you give them to hang on to their jobs for longer?



Vladimir Putin:

No matter how strange it would sound but one should not cling to power at any price. I have not, as you put it, just been in power for 16 years, I was the President of the Russian Federation for eight years and after that, without violating the Constitution or readjusting it to my own needs, I just decided not to run for the third presidential term, which was impossible; within the framework of the current Constitution. Our Constitution stipulates that one can be elected for two terms running. So I followed the rules: I was elected two times and then I just left and changed my job – I have worked as the Chairman of the Government for four years. In accordance with the Constitution, when I regained this right in four years, I run for the presidency, I was elected and I am the President now.

So we do not speak about 16 years, but rather about four, four and eight years, and now I serve my four-year term. I have been working as President for 12 years.



John Micklethwait:

What is the reason for your success?



Vladimir Putin:

Wait a minute. As for the time spent in office, let us say, Canada is one of the examples. I believe that its leader has spent 16 years in power. And the German Chancellor, for how much time has she stayed in power? If we refer to the number one in the executive power.



John Micklethwait:

Not 16 years. You have done longer than most.



Vladimir Putin:

I have not been President for 16 years, but for 12 years. I suppose that she has been in power not for fewer years.

But this is not about it. I do not know what secrets can exist here. I do not have any secrets. I just always try to feel the spirits of the people, feel their needs, their mood for patterns and methods of solving the tasks, their priorities and I am guided by all this in the first place. I believe that it is the most important aspect in the job of any person who does the kind of work that the Russian people have entrusted me.



John Micklethwait:

You look around the world at the moment. There are so many countries that become dynasties — the Clintons, the Bushes in America. You have children who you successfully kept out of the public eye. Would you ever want your daughters to go into politics? Would want them to have the same life as you?



Vladimir Putin:

I do not regard that I have the right to wish something for them. They are young, but nevertheless they are adults and should determine their future by themselves. In general, as I see it, they have already chosen their way, they pursue science and they are engaged in some activities that are noble and needed by people. They feel in demand, they enjoy their work and I am happy about it. They are responsible and honest about the profession they have chosen for themselves.



John Micklethwait:

When I flew here on Korean airlines I had a choice of two films to watch: one was Doctor Zhivago, and the other was the Godfather. Which would you recommend to somebody trying to understand Russia?



Vladimir Putin:

I do not know. You see, we have a famous poem, which goes: ''You will not grasp her with your mind or cover with a common label, for Russia is one of a kind – believe in her, if you are able''.

But the Russian culture is multifaceted and diverse. That is why if you want to understand, to feel Russia, you should certainly read books – Tolstoy, Chekhov, Gogol, Turgeney – listen to Tchaikovsky's music and watch our classical ballet. But the most important thing that one should talk to people. I assure you: as soon as you start to meet average ordinary people you will understand that Russians, whether they are Tatars, Mordovians, Chechens, Dagestanis, are very open-hearted people. They are open and a bit naive.

But there is one characteristic feature which many nations must have but it is particularly evident in Russians. It is a pursuit of justice. It seems to me that it is one of the dominant features in the Russian mentality. And another component of the Russian mentality is a pursuit of some… This is a common feature, there are millions of people and all people are different from each other, but on the average we certainly want to be well off and I will strive to do my best for people to live better and to improve the living standards. Notwithstanding all this, there is a pursuit of some high moral ideal, some moral values in Russian people's mentality and heart. This is the thing that for sure – and I convinced of it – is our positive distinctive feature.



John Micklethwait:

Ok then, that sounds like Doctor Zhivago to me.

President Putin, I thank you for talking to us. You were so generous to devote your time to us.



Vladimir Putin:

Thank you very much.





The source of information - http://en.kremlin.ru/events/president/news/52830
 
Old September 5th, 2016 #29
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Eastern Economic Forum



Vladimir Putin took part in the plenary session of the Eastern Economic Forum. This year, representatives of 35 countries applied to attend the forum. In total, delegations from 56 countries are taking part.



September 3, 2016 - 08:20 - Russky Island





Moderator of discussion at the plenary session of the Eastern Economic Forum, former Australian Prime Minister Kevin Rudd:

President Putin, Prime Minister Abe, President Park, and to our distinguished guests here at Vladivostok and to you, the delegates at the Eastern Economic Forum. My name is Kevin Rudd, and I am President of the Asia Society Policy Institute in New York. It is good for me to be back in Russia, it is good to be here in Vladivostok, Russia’s Pacific capital, but as well, it is good to be here, at this Eastern Economic Forum.

I am told, Presidents and Prime Minister, that we have one and a half thousand delegates here from many countries across the region, and we have most of those delegates from the business community. And so therefore, we are here to discuss the central theme of the future economic development of the Russian Far East.

We are also here at a time of great global challenges. We are here at a time when we have tensions in geopolitics, new tensions, we have changes in global geoeconomics, we have the continuing global challenge and rising challenge of global terrorism, we have of course a slow and sluggish global economy, which has not fully recovered from the crisis of nearly ten years ago. We have a global problem of unemployment, and in particular global youth unemployment, before we even encounter the impact of the new technologies on employment in the future.

So we are particularly privileged at this time when we see great global challenges requiring strong global leadership and strong global institutions to have these political leaders with us today. And we are doubly privileged to have them with us today because each of them is now in the next 24 hours heading to Hangzhou in China for the G20. And the eyes of the world will be on the G20 in China to see what contribution that gathering can make to rejuvenating the global economy, which affects each and every one of us here.

So, thank you, Prime Minister Abe, thank you, President Park, and thank you to our host, President Putin, for having us here in the great city of Vladivostok.

We are going to begin with addresses by the three political leaders and then we will move to an open forum. And if we could begin by inviting the President of the Russian Federation, His Excellency Vladimir Putin, to deliver his formal remarks to this, the second, Eastern Economic Forum. Mr President.



President of Russia Vladimir Putin:

Ms Park Geun-hye, Mr Shinzo Abe, friends, ladies and gentlemen. Welcome to Vladivostok, to the second Eastern Economic Forum, which brings together over 3,000 participants from 35 countries this year.

For us this means a growing interest to Russia in the political and business circles of the Asia-Pacific and other regions; an interest in our Far Eastern agenda in general, our steps and initiatives that open up new possibilities for cooperation and the implementation of lucrative projects in the Far East.

We have set ourselves a big goal, ambitious in every sense, a huge-scale task: to make the Far East one of the centres of Russia’s social and economic development – a powerful, dynamic and advanced region. As I said, this is one of our most important national priorities.

We can already see real change here – only the first, but nevertheless significant and encouraging results. For example, industrial production in the Far East grows at a more than 5 percent rate; growth has been modest across Russia at 0.3 per cent, but in the Far East we had 5 percent.

Over the past year, the region has additionally attracted more than 1 trillion rubles of investments – about $15 billion, and more than 300 investment projects were launched here. This means that the business support policies we proposed enjoy demand.

Finally, there is the main consolidated and most valuable indicator of ongoing changes in the Far East – the emerging positive demographics. For the first time in a quarter century, Khabarovsk Territory, Sakhalin, Yakutia and Chukotka have seen an increase in population. For the third year in a row, the birth rate in the Far Eastern Federal District exceeds the death rate, and fewer people are leaving the Far East.

There is population outflow, regrettably. However, it went down 3.5-fold for the Far East Federal District as a whole over the first half of this year. It is true that the demographic results are still modest, but they do demonstrate an emerging trend and we must now build on this trend and make it irreversible.

Over the next three years, we must achieve a sustained growth of population in the Far East. I remind the Government and all ministries and agencies that our state programmes must also focus on this task, especially economic, social and demographic programmes, our housing policy, healthcare and education.

Ladies and gentlemen, the strategy for developing the Far East is based on openness to cooperation on a broad international level, all the more so as the Far East is literally at the epicentre of dynamic integration processes.

We are working consistently to develop the Eurasian Economic Union and expand its international ties. In October this year, Moscow will host the second round of talks on a trade and economic cooperation agreement between the EAEU and the People’s Republic of China. This will lay the foundations for a comprehensive Eurasian partnership in the 5 plus 1 format.

The trade and economic agenda within the Shanghai Cooperation Organisation is also becoming more substantial and promising all the time. The upcoming accession of India and Pakistan as full members of the organisation, and, I hope, Iran in the future as well, will add to these opportunities.

In short, several integration tracks are taking shape in the Eurasian region today. They flexibly complement each other and enable us to carry out projects on a mutually advantageous basis.

We believe that this integration network and the system of multilateral and bilateral agreements, including those on free trade zones, could become the foundation for developing a big Eurasian partnership. We discussed this very idea at the St Petersburg International Economic Forum this summer.

Now, together with our EAEU colleagues, we are drafting consolidated, practical proposals on developing broad Eurasian integration. These proposals concern such matters as regulation, unification of administrative procedures, removing trade barriers, supporting trade and investment, technological and production cooperation, intellectual property protection, and infrastructure construction.

We believe that effective integration is possible only on the basis of equal rights of all participants and respect and consideration for each other’s interests without any political or economic pressure or attempts to impose unilateral decisions. As we understand it, integration is about predictable, long-term rules and openness to cooperation with other countries both in the East and the West. We are ready to study counterproposals attentively and look for the best possible solutions with anyone who is interested in such cooperation.

We realise that these are big, ambitious, complex and long-term tasks. The project I refer to can be carried out only within the framework of a flexible multi-level model using innovative solutions and working in the interests of economic growth and greater prosperity for people throughout this vast region.

The driving force behind this integration will be business energy and initiative and its obvious and ever-growing demand to remove barriers and create big markets with a business-friendly environment.

This integration must also be based on serious joint projects, which will sew the seams of our economic space and create new development resources. I would like to mention a number of these projects and opportunities now.

First is a reliable energy infrastructure. We support the initiative of Russian, Japanese, South Korean and Chinese companies to create a super energy ring linking our countries as one. We propose setting up an intergovernmental working group in order to move ahead more rapidly and dynamically on this project. Let me note that Russia is ready to offer its Asia-Pacific region partners competitive energy rates and long-term fixed price contracts.

Second is transport infrastructure and the formation of new, competitive trans-Eurasian and regional transport routes. Examples here are the Primorye 1 and Primorye 2 transport corridors, which lay the shortest route for moving goods from China’s northeast provinces to the ports in southern Primorye Territory, and the construction of the Russian section of the Europe-Western China route. I will be discussing the development of this and other transport infrastructure routes with my colleagues at an upcoming State Council Presidium meeting very soon.

Third. We are living in an age of information and rapid development of digital, telecom and Internet technologies. We have to seize the opportunities they offer to promote cooperation, so that our countries’ governments and companies could do business and interact in a convenient electronic form.

Therefore, we suggest creating a common digital economic space. We are talking about the creation of legal and technological conditions for electronic interaction. I would also like to ask the Russian Government to submit a detailed plan of this work.

In fact, some good things have already been done here. The Eurasian Economic Commission is supervising the development of an integrated information system – a system of cooperation in transport, trade, customs, veterinary, tax and other procedures.

Fourth. We need human resources and technological groundwork for the future. In this regard, we invite partners to join the project to build an international science, education and technology cluster on Russky Island.

We plan to put together a support system for start-ups here, including venture capital financing, to organise a network of laboratories for collaborative research, and to create a modern business infrastructure, including business and exhibition centres.

We would like professors and students from other countries to come to Russia, as well as research, creative and project teams from other countries. As far as I know, 2,500 international students are already studying at the Far Eastern Federal University, and dozens of faculty members from other countries teach here.

A few hours ago, my colleagues and I attended the opening ceremony of the Far Eastern Oceanarium. This is not just a commercial centre, but a science, education and information centre, and we hope it will also serve as a good base for the study of marine biology at the level of leading scientists in the region and around the world. And I ask the Government to speed up the development of a comprehensive development programme for Russky Island.

Ladies and gentlemen, the projects I have just mentioned reflect the full diversity of opportunities for joint work in the Far East. We are creating the best possible conditions to make this region a centre of investment appeal and a platform for cooperation.

Starting October 1, a one-step system will start operating in the Vladivostok free port for all border-crossing procedures. The checkpoints and electronic declaration of goods systems will be working round the clock.

I met yesterday with business representatives. I know that not everything here is working exactly as we want it, but we took in your comments and will make the necessary improvements to our work.

The Government is already at work on plans to simplify visa procedures for foreign citizens arriving at the free port. The plan is for people to complete all the formalities via the Russian Foreign Ministry’s internet service and obtain an electronic visa.

In addition to Vladivostok, we recently decided to extend the free port regime to another four Far East ports – Vanino in Khabarovsk Territory, Korsakov on Sakhalin, Petropavlovsk-Kamchatsky in Kamchatka Territory, and Pevek in Chukotka. We will add more if necessary.

At the meeting with business representatives I just mentioned, we heard that this is not enough and that some business representatives have not received the breaks they were expecting. We will certainly examine further all of these issues.

Yesterday we also discussed work in the priority development areas and raised a number of issues concerning procedures for obtaining profit tax breaks.

I do agree that we should take into account each project’s specific nature, scale, and implementation timetable. I think that the tax holidays should be extended for big long-term projects. I discussed this matter yesterday with the Finance Minister, and the Finance Ministry agrees in general to this idea. I ask them to draft the relevant amendments to the law as soon as possible.

We are sure that there will be many big and significant projects. The Far East offers an excellent location and natural resources with direct access to the most promising global markets. This offers inexhaustible opportunities for business initiative.

At the same time, we should give companies the opportunity to attract affordable financial resources. This is the task that the Far East Development Fund is currently addressing. The Fund issues loans at five percent annual interest in rubles. The demand is high, with businesses literally queuing up. To avoid holding back the launch of new projects and provide them with sources of financing, we have to constantly focus on the Fund’s capitalisation support.

Of course, we are facing the overall task of developing an extensive financial and investment infrastructure in the Far East. Such projects are already underway. At this forum, you can see the presentation of a new investment system, Voskhod. It opens direct access to Far Eastern companies’ shares and bonds for Russian and foreign investors.

An agreement has been signed on the forum sidelines between Russia’s Far East Agency for Investment Promotion and Export Support and one of the world’s largest banks, the Japan Bank for International Cooperation. A joint platform will be created to attract Japanese investors to the priority development areas and the Vladivostok Free Port.

The Russian-Chinese Fund for Agro-Industrial Development, which has started its work this year, is a good example of mutually beneficial investment cooperation. The fund supports export-oriented projects in agriculture and the food industry.

I am confident that the Russian Far East, with its land and marine resources, can become one of the major suppliers of quality and eco-friendly foods in the Asia-Pacific Region, an area that is home to almost 60 percent of the world’s population.

To our partners from Japan, the Republic of Korea and other countries, I propose establishing similar joint investment platforms. They could focus on financing projects not only in agriculture but also in industry, high technologies and natural recourses development – in short, in the sectors that have a vast potential.

At the same time, we must combine access to our natural resources with investment in their processing. I ask the Government to develop and implement such a mechanism for the Russian Far East. The approach should be simple: if a company wants to receive a priority right to the use of raw materials, aquaculture or forest plots, or to develop mineral deposits, it has to put effort into building plants, contribute technology, and create new jobs and higher added value.

Friends, the future of the Russian Far East is inseparable from the future of Russia. This is what our ancestors believed, and they explored Far Eastern lands and brought glory to the Fatherland. We have begun a new historic period of developing the eastern territories, and it is planned for decades ahead.

The tasks to be resolved in the Far East are unprecedented in scale and importance. We are fully aware of our tremendous responsibility to our citizens and future generations. I am absolutely certain that we will carry out the plans I have outlined here. I believe in the Far East’s success.

Thank you for your attention. Thank you.



President of the Republic of Korea Park Geun-hye (retranslated):

President of the Russian Federation Vladimir Putin, Prime Minister of Japan Shinzo Abe, members of government delegations and business communities, allow me to begin by congratulating you all on the opening of the second Eastern Economic Forum in Vladivostok, the centre of the Russian Far East.

The Far East is a treasure trove of diverse energy resources, including oil and natural gas. Asia and Europe meet here and the region is the starting point for transport routes and freight arteries across the Eurasian continent. It would be no exaggeration to call this region Russia’s new heart.

The great writer Dostoyevsky said that Asia would play a big part in Russia’s future and this showed his foresight with regard to the Far East. Currently, North Korea leaves us with a break in the chain that makes it hard to realise in full the Far East’s tremendous potential, but in the future, when these links are joined together once more, the Far East will become a bridge of peace and prosperity linking Eurasia and the Asia-Pacific region.

I hope that the Eastern Economic Forum will become a good platform for comprehensive dialogue and for concentrating knowledge on the task of making this idea reality. The leaders of three countries, the Republic of Korea, Russia, and Japan, are taking part in this forum, as are high-level officials from other countries, and this offers good opportunities for strengthening political will and cooperation in this region.

Ladies and gentlemen, we see today a slowdown in global economic growth and a trend towards protectionism and new isolation, and this creates added uncertainty. At the same time, two opposing forces, integration and separation, intersect, and this creates chaos.

The European Union achieved the highest level of political and economic integration, but it now faces challenges following Britain’s decision to withdraw. At the same time, in the Asia-Pacific region, integration gathers pace and countries are building stronger ties with each other. The international community has come to a crossroads: to take the road of separation and isolation, or to choose the path of openness, integration and ties. The shape of our future depends on the choice we make.

A policy of separation and isolation would be the wrong choice. History has taught us this. During the Great Depression, countries raised customs duties and the result was that trade fell by more than 40 percent in just four years. After protectionist measures were introduced in the 1980s, trade that had been growing at an average rate of 20 percent fell to just 5 percent.

We cannot achieve sustainable global economic growth if we raise barriers and choose separation and isolation. On the contrary, we must raise the level of integration, link our networks together and create a platform for global economic cooperation. On this basis, through ongoing innovation and opening our markets, we must create a new driving force for building the future.

Ladies and gentlemen,

The Far East offers opportunities for economic ties and human contacts as well as good industrial organisation. This potential makes the region a promising new place for carrying out integration and growth initiatives. President Vladimir Putin is carrying out a new eastern policy that is injecting new life into the region and developing its potential in a vision that can become reality.

The Republic of Korea is also paying great attention to the Far East. Above all, I note that trade between South Korea and the Far East accounts for 40 percent of our overall bilateral trade. Sixty-percent of Russian tourists visiting South Korea come via Vladivostok. The Far East is thus a bridge linking the Republic of Korea and Russia.

The ASEAN countries, including Japan and China are also making efforts to develop this region through various development and cooperation projects. There has been progress, but we still have work to do together to fully develop the Far East’s potential and ensure sustainable growth. In his speech at the first Eastern Economic Forum, President Vladimir Putin stressed the importance of social and economic development in the Far East and Russia’s effective integration into the Asia-Pacific region. Keeping this view in mind, we need to concentrate on three main cooperation areas.

First, to activate Far East development, we must put in place an environment that will ensure the region’s sustainable development, in particular by strengthening cooperation in foodstuffs, housing construction, healthcare and medical services. We need to get more players involved. In this context, we are ready to work with Russia to come up with specific measures for carrying out joint projects in agriculture based on modern technology in Primorye Territory, including projects to build agroindustrial facilities.

In the fisheries sector, the Republic of Korea could take part in a project to build refrigerated warehouses and fish processing facilities and make a contribution to developing the Far East’s fisheries industry. Korean companies also have great experience in housing construction and by getting involved in big housing construction projects, Korea could help to improve the region’s housing situation. Korean medical facilities use advanced technologies based on ICT (information and communications technologies) and could provide quality medical services, which would of course boost the level of healthcare and medical services in the region.

Secondly, to diversify the Far East’s industrial structure, we need to build an infrastructure and make sure that all projects develop naturally and independently in accordance with economic principles. The Far East’s economic structure is currently centred around energy resources development, but given the region’s geographical location favourable for logistics development, it has great potential for growth through industrial diversification, as the Far East is located so close to the Northeast Asia economy.

If we marry South Korean capital and processing technology to Russian fundamental science and resources, this would enable us to create a competitive industrial base. Furthermore, cooperation between Korean and Russian businesspeople on infrastructure development, including transport and port infrastructure, we can develop a new multimodal logistics route that will unite the Eurasian continent.

In particular, the Northern Sea Route opens up new opportunities for cooperation in sustainable resource development. The project to build rapid intercity transit routes in the Far East and projects to improve city infrastructure also offer good opportunities for cooperation because South Korea has the needed experience and technology for carrying out environmental projects, including technology for processing the waste generated in the process of developing city infrastructure.

At the Korean-Russian summit in November 2013, President Putin and I agreed to develop joint investment platforms with the aim of stimulating bilateral investment in the Far East. Korean and Russian companies can work together in promising areas and use the investment platform to carry out favourable projects.

Thirdly, we can accelerate the Far East’s development and maximise the results if we broaden the cooperation spectrum by linking the Far East to the neighbouring countries’ economies. We can use the Northeast Asia countries’ different Eurasian concepts and initiatives as a basis for spreading the energy of advantageous cooperation in the Far East across the entire Eurasian continent.

The Korean government wants to turn Eurasia into a continent of unity, creativity and peace. This is how we see promotion of cooperation with the Eurasian continent. At the St Petersburg Economic Forum in June, President Putin proposed establishing a big Eurasian partnership. This is a vision for integration across the entire continent and it fits with our own Eurasian initiative too.

The Republic of Korea is a country that has signed free trade agreements with the United States, China and the EU, so if we are able to enter into a similar agreement with the Eurasian Economic Union, in which Russia plays a key role, it will lead to increased economic integration in Eurasia, revive the development of the Far East, and will also promote the benefits of the region’s advancement across the continent of Eurasia.

At the same time, we need to get some practical results of cooperation on a mutually beneficial basis. We must make efforts to develop multilateral cooperation in the region through building trust. Right now, North Korea’s frequent provocations hamper trilateral projects, including the Rajin-Khasan logistics project.

However, if these barriers are eliminated it would be possible to resume these projects on an even more ambitious scale, between three parties: Korea, Russia and Japan, or Korea, Russia and China. This will create an environment where all networks are interconnected – electricity, railways and energy, and in the long run, this will contribute to the effective integration of the Far East and to the region’s prosperity.

Ladies and gentlemen, peace and stability in the region is an absolute prerequisite for the sustainable development of the Far East and the regions’ integration. In this context, I cannot ignore the issue of North Korea, which is a key node in Eurasia and the most serious threat in the region.

Despite the repeated warnings of the international community, North Korea has conducted four nuclear tests since the beginning of this year and launched ballistic missiles. Pyongyang does not recognise the UN resolution, calling itself a nuclear power in the East, threatening nuclear strikes and continuously improving its nuclear and missile capabilities. After the nuclear test, North Korea has already launched 19 ballistic missiles, which means it has launched a rocket every two weeks, which exceeds the number of rocket launches over 18 years under Kim Jong-il's government.

The ballistic missiles that fall in the eastern sea are a threat to ships navigating there, including Vladivostok. North Korea’s regime ignores human rights and its people’s right to quality life, focusing all resources on the development of nuclear weapons and ballistic missiles. If we fail to prevent the development of nuclear weapons in the near future, the North Korean nuclear threat will become a reality.

I am confident that this forum will become a significant platform for dialogue aimed at joining forces to open a new page for an integrated Eurasia, for prosperity and peace in the region. I hope that in the future, this forum and our dialogue will emanate the energy of openness, change and innovation throughout North-East Asia.

Thank you.



Prime Minister of Japan Shinzo Abe (retranslated):

Ms Park, it is a great honour for me to meet with you again. And of course, thanks to your invitation, Mr President Putin, I have come to the Russian Far East for the first time, and I am very excited about it.

This time, of course, I flew in, but the true gate to this city is certainly its port. If you look at the city from the sea, it is especially beautiful, and so one should probably arrive in Vladivostok by ship. About a hundred years ago, one man wrote, admiring Vladivostok from the bay, that “Vladivostok is hardly to be second to any city” in its beauty. This was the famous polar explorer Fridtjof Nansen.

There are places in the city that I would love to visit, such as the house and monument to Yul Brynner, Oscar winner for his leading role in The King and I, on Aleutskaya Street. I must certainly see this.

Mr Putin certainly knows that Vasily Oshchepkov, the founder of Kodokan judo in Russia, opened Russia's first Dojo gym here, at 21 Korabelnaya Embankment, and I wonder if the building is still there. I would love to take a walk around these places when I come here next time. And I would really like it to happen in the very near future. Why? This is something I will talk about later.

Every time President Putin addresses the Federal Assembly, he notes that the most important thing for Russia's state development is the development of its Far Eastern region. The President declared Vladivostok a free port and intends to expand this example to other port cities. Probably, the President wants to bring back the former international glory of Vladivostok.

This is President Putin's dream and my dream as well. Mr President, let's turn Vladivostok into a gateway that connects Eurasia and the Pacific Ocean. Today the Pacific region is actively evolving, transforming into a free, fair and open economic zone, and the vast continent behind it – Eurasia – must certainly lend an even greater impetus to this dynamic process. I am sure that the bright light coming from Vladivostok will generate a huge ripple effect that will illuminate every corner of the Pacific.

Mr Putin, during our recent meeting in Sochi, I chose and proposed eight areas for Russian-Japanese cooperation. One of them is urban planning and creating a convenient and clean city environment for a comfortable and active life. Don’t you think that Vladivostok is an ideal model for implementing this concept through the efforts of our two countries?

This city still has nostalgic pre-revolutionary buildings, side by side with distinctive Soviet era and modern design, which offset the natural beauty of the sea and the hills. Please allow Japan to participate in the work, which will make the city of Vladivostok comfortable for its residents and attractive for tourists, while maintaining its beauty. This is a serious proposal. Let’s do this together.

While preparing for this trip, I came across Russia’s demographic statistics, and I was surprised to learn that from 1976 to 1986, almost 23 million people were born in the country, yet today the population aged 10–20 is less than 14 million – these are people born in the decade following 1996. These statistics seem to reflect the difficulties Russia had to go through in the late 1990s.

Today, Russia has reached a stable increase in average life expectancy and population growth, which is rare in today’s world. Due to a great number of school-aged children, there are not enough schools in your country, and for us in Japan this is something to envy. However, in the future the number of the working-age population will significantly decrease, and this will result in today’s teenagers taking on most of the burden.

By the time they reach their most active age, they will be carrying the heavy burden of providing medical care for the elderly. Foreseeing this, as the first point in our cooperation plan we proposed increasing the productive years for Russian citizens through establishing advanced healthcare and recreational institutions.

Japan is facing similar problems. With its low birth rate and a fast aging population, much burden falls on the medical and pension systems. We must make every effort for the elderly to be able to support their health, and President Putin’s concerns about the demographic situation in Russia are my concerns as well. I think that President Putin urges Russian teenagers not to be upset about a great number of elderly people, but young people in Japan need this encouragement as well.

However, there is no fast solution to this issue. The thing that political leaders can do is plan for the future of their state based on the long-term prospects for the next 20 or 30 years. We must have the courage to acknowledge the seriousness of this issue and develop constructive responses, and make every effort to consistently implement them. I think that Ms Park Geun-hye will agree. The future may not change for the better all at once, but we must make our young people realise that they need to make every effort to succeed. I think this is our common goal and concern.

Ladies and gentlemen,

There are only three ways to ensure economic growth – a renewal of capital assets, augmenting the workforce, and increasing productivity. My economic policy, the so-called ”Abenomics“ is about stimulating Japan's economic growth through its impact on these three elements. However, economists agree that the most important factor for economic growth is people's expectations.

It is all based on people's confidence that tomorrow will certainly be better than today. To do this, Mr Putin, we need first of all to share a strong belief in future opportunities that may arise due to closer cooperation between Japan and Russia. The relations between our economies are not competitive, but they ideally complement each other, I'm sure. Let's think about this future development, stimulate the other’s economy on the demand side and on the supply side.

Let’s do all we can to help the peoples of our countries believe in a brighter future. One promising area is cooperation between our small and medium-sized businesses. The development of energy resources, the expansion of production capacity, the capacity of these businesses, is perhaps the most vivid example of mutually beneficial cooperation between the two countries. Let’s diversify Russian industry, raise its productivity and thereby make the Russian Far East an export base for the entire Asia-Pacific region. Let's invest in the future together, encourage cooperation in high-technologies, and cultural exchanges.

I have a proposal to make to Mr Putin. Let's meet once a year, here in Vladivostok, to review how our eight areas of cooperation are faring. We could walk in the virgin woods of the taiga, with the sun penetrating through the leaves – where Akira Kurosawa filmed his Dersu Uzala – and talk about what Russian-Japanese relations should be like over the next 20–30 years.

I would like to propose that every year, we have this opportunity to move away from the ordinary and discuss these things most thoroughly. I think the audience’s support of my proposal speaks for itself. It certainly seems a good idea, right? And for me it would be a great opportunity to visit Vladivostok every year.

I would like to remind the Russian business leaders present here: Japanese equipment for piling was used in the construction of the bridge you crossed to get here. The electricity in this room is produced by gas turbines made in Japan. I ask all of you to start gaining experience by cooperating with Japanese companies as soon as possible. Japanese companies have workers who have already improved the efficiency of production at their own plants.

Everything is done so that voices from the workers who see the needed improvements can be properly heard by the managers and engineers. So, the system of kaizen, or improvement, which takes place gradually, step-by-step, reducing the number of low quality pieces, can be maintained. Ideas expressed by each employee in his or her area increase the levels of safety and efficiency. This is an original system for production specifically in Japan where there is no fixed hierarchy and where there are no class differences.

In a competitive market, pricing is determined by the market rather than the company. What has to be done to hold profits and increase market share without damaging quality? By concentrating on the gross profit by reducing expenses and using the kaizen method, it was Japanese companies that managed to remove excess from the production process.

Please, don’t argue saying that there is nothing unusual about this. Because until Japanese companies proved otherwise, the world believed that affordable and, at the same time, high-quality production was not possible. This is the opinion of Harvard Business School researcher Michael Porter. Many countries quickly mastered the techniques I described, but they have yet to reach Russia. Russia has not yet experienced the revolution in production that can be gained through close contact with Japanese companies.

Mr Putin, there is already a tried and tested, and short road to becoming a great industrial power. It is safe to say, from my side, that this course is the partnership with Japanese business. Vladimir, you are facing a very important task. The fact that a peace treaty has not been signed between Japan and Russia, neighbours that are very important to each other with unlimited potential, cannot be called anything but an abnormal situation.

We stand here, each with his own position in history, public opinion, and people’s patriotism. As a Japanese leader, I am convinced in the correctness of Japan’s position, like you Vladimir, as the Russian leader, are convinced about the correctness of Russia’s position. But if we continue in the same vein, then we will have the same debate for decades. If we leave everything as it is, without change, then neither you, nor me will be able to provide future generations with better opportunities.

Vladimir, you and I belong to the same generation. Let’s show courage and take responsibility, let’s overcome all difficulties and leave the young people of the next generation in an environment where our two countries, Japan and Russia, can reach their powerful potential.

Let’s draw a line in this abnormal situation which has lasted for 70 years and start building together a new era in Russian-Japanese relations which will last for the next 70 years. Together with you, Vladimir, I am firmly determined to undertake any effort to develop Japanese-Russian relations and to give momentum to the relations between our two countries which have unlimited opportunities.

Thank you very much!



Kevin Rudd:

Arigato gozaimasu, Abe-san. If I got the message right, I think you want to see a peace treaty between Japan and Russia. I think that was a subtle message at the end of your speech. Also, Abe-san, congratulations on your Mario performance at the closing of the Rio de Janeiro Olympics. This was worthy of an Oscar. And it’s good to see that Mario from Nintendo has made his way from Rio de Janeiro all the way here to Vladivostok.

The questions that you raised, both President Park and Prime Minister Abe, about Vladivostok and the future I think are interesting to all of us. This audience is made up of businesspeople – investors, traders, people who want to see future economic opportunities become a reality. So, let me turn my initial questions to our host, President Putin, and it begins about this city, Vladivostok. I share the enthusiasm of Prime Minister Abe from my first visit here. In Australia, we have a place called Sydney Harbour. It is quite spectacular. It is one of the most spectacular natural harbours in the world. But in my 36 hours here in Vladivostok – here in Vladivostok you have a genuinely spectacular natural harbour as well. And so the challenge lies with its future economic development.

Mr President, as a kid growing up in rural Australia I lived on a farm, and in Australia we are used to vast distances, vast expanses, and vastness. But when I look at the map of Russia, and as a kid I used to look at the map of the old Soviet Union, this vast expanse east of the Urals and here in the Russian Far East. If we think Australia is vast, this is mega vast. In fact, I looked at the numbers just before we came on stage: we can fit two entire continents of Australia into Russia east of the Urals. And in the Russian Far East we’ve almost got one continent of Australia in terms of size.

Yet here in the Russian Far East you still, as you have indicated, got a population about the size of Singapore. So therein lies the challenge that you have pointed to. In my country, we call this the tyranny of distance, which is small population, huge territory, vast distances between people and markets. You obviously share a common challenge here. So, Mr President, I’ve listened very carefully to your strategy for developing the Russian Far East. On the core question of population and getting people to come here, to stay here and to prosper, could you expand further on the challenge of population growth here. I listened very much to what Prime Minister Abe had to say about helping through cooperative projects to build, rebuild and expand the city of Vladivostok itself, but if I could ask you further to expand on that most basic of challenges. Over to you, sir.



Vladimir Putin:

First of all I would like to thank the President of the Republic of Korea and the Japanese Prime Minister for their emphatic and informative presentations. I enjoyed listening to you, and was both pleased and interested to hear your proposals. It is good that you have not only heard us, but also proposed your own versions of cooperation. Without a doubt, we will respond to them, we will make every effort to bring to life everything you and we speak about.

Now, regarding the potential of the Russian Far East and the problems that exist here. Indeed, one cannot disagree with the pioneers who discovered these places – these are truly amazing, beautiful, unique places. I would like to note that we are certainly grateful to our ancestors for the discovery and development of these areas.

However, I must say that for many decades, if not centuries, these areas have not been given enough attention. Attempts have been made in the past century, even during the development of the Western, partly Eastern Siberia; yet, we never got around to developing the Far East. Strange as it may sound, we hardly even had a good motorway linking the European and Far Eastern parts of our country. We never had one. A project was started in the 1960s, but was abandoned later. Only recently did we complete this project. For the first time these territories were linked to the European part of the Russian Federation by a motorway. This is my first point.

Second. Actually, the city of Vladivostok was founded and developed… if I may even use the world “developed.” I would rather say it merely existed here as a military base and a closed city. Hence all the problems that have been accumulating here for decades: an undeveloped infrastructure, a lack of primary energy sources and a lack of transport infrastructure in general.

All this, of course, is in stark contrast with this region’s potential. Huge mineral reserves are concentrated here. Well, for instance, it accounts for 20 percent of our oil reserves, about the same amount of natural gas; 70 percent of Russian fish is caught in these waters, and 75 percent of Russia’s forest resources are concentrated here as well. Eastern Siberia produces 75 percent of Russian diamonds and 30 percent of gold. This volume is hard to imagine.

I know that this is not enough. The region does need a new infrastructure, which I mentioned, it needs energy, finance, technology and a highly skilled workforce.

What are we doing to let this region truly breathe free, gain new vigour and make the most of its development prospects? We have taken a whole package of measures over these last years to implement our plans. What are these measures and what do they involve? First, we have introduced a whole system of preferences and exemptions for business in the region. This is particularly the case of what we have dubbed the priority development areas.

First, we analysed the experience of countries such as China, South Korea and Singapore, and we offer those who looking to work in the Far East a whole range of preferences, starting with tax holidays. For example, businesses are exempted from federal profit tax during the first five years of work. There are also regional tax breaks (on payments to the social funds, for example, accelerated return of value-added tax, and simplified administrative and customs procedures).

Second, as you have already heard here, we established a free port regime, first in Vladivostok and then in five other Far East ports. The free ports also offer a big range of benefits similar to those in the priority development areas. They also offer more effective work with the customs service and border guards.

As I said, I met yesterday with my colleagues and with members of the business community. We heard their comments and concerns and will make the necessary adjustments. In any case, we are putting into place the conditions they need at the ports and improving the port facilities.

Finally, we established a fund specifically for Far East development. It provides quite long-term and relatively cheap financial resources at a 5-percent interest rate. Of course, we must add more and top up the fund’s capital, but we have taken the first steps and the work has begun.

Another of our substantial measures concerns infrastructure. We decided and have already begun to subsidise businesspeople who build infrastructure facilities independently. I think that this package of measures should make it possible to work effectively in the Far East for those wishing to do so.

I mentioned the free hectare of Far East land at the start of my speech. Under this programme, we make a hectare of land available for free (as you can see, the region is not at all lacking for land) for people wanting to start their own business or develop the site.

There are many areas for cooperation and there are projects to build on. It would be wrong to say that the region is starting from scratch. If you look, you see that back in the Soviet period, we already developed aircraft manufacturing in the city of Komsomolsk-on-Amur, for example. True, this is military aircraft manufacturing, but the general skills are there, and they produce the Su fighter planes known all around the world.

We are well aware that we should not and cannot limit ourselves to selling arms alone, and this is why we are working, chiefly with our Italian and French partners, on developing manufacturing of civil aviation aircraft. The promising medium-haul Superjet-100 is produced here, for example.

We had already started developing a shipbuilding cluster in the region. Two years ago, I was here for the start of operations and the inauguration of what is really an enormous shipbuilding enterprise that will produce civilian vessels in specialised areas in which we really do have the skills, skills that we must continue to develop, of course. These areas include civil vessels with icebreaking capability, and specialised vessels for serving offshore drilling platforms, and for working on the Northern Sea Route, which President Park spoke about. We will develop this most economic route for shipping goods between Asia and Europe.

We are also developing our space sector activity here. We recently inaugurated Russia’s new space launch centre, Vostochny, in Amur Region, one of the Far East regions. The first launch has taken place and we will expand it to handle light, medium and heavy rockets. This is also a platform for international joint activity to develop outer space and offers excellent prospects.

We are developing not just the space launch centre (the first part of which is already complete), but are building a whole cluster and a town with all the needed social infrastructure for those who wish to work here.

Of course, the region also offers the resources I already mentioned, hydrocarbons, oil and gas, and traditional resources such as timber and fish. These are all areas in which the region has longstanding experience and we just need to take them now to a higher level. We need to not just work on production and export, but also on adding value to our products – this is clear. It is for this reason that we are developing the priority development areas, the Vladivostok free port and other measures in order to attract Russian and foreign business.

But to make it all work efficiently, we definitely need highly-qualified personnel. Our event is taking place at Far Eastern Federal University, which was established only two years ago. We are working from this perspective – as I mentioned, 2,500 foreign students study at this university and dozens of foreign teachers work here. Last year, I was told that people from foreign countries are waiting to work here, and I’m very happy about this. Of course, constructing such beautiful university buildings was not enough; we have to provide highly-qualified personnel and talented young people to meet the demands of the growing labour market.

There is another side of this that we should remember. To do all of this and to make people want to live here, raise children and feel that their children have a future here, another goal has to be met – creating not only a modern living environment but also a cultural environment. There is a very good music theatre here. I’m grateful to the Mariinsky Theatre, which has opened a branch here. The first festival has recently debuted with great success, with a great number of people from Primorye and Vladivostok, as well as from foreign countries – primarily Japan, the Republic of Korea and the People’s Republic of China – that are interested in attending these concerts.

We intend to open branches here from St Petersburg’s Hermitage Museum, the State Russian Museum, and the State Tretyakov Gallery. I think that a local museum dedicated not only to Primorye but to the entire region, and the neighbouring countries, should also be considered.

Science and education should be developed. My colleagues and I have just visited the newly opened scientific centre for marine biology research. This has traditionally been developed since the Soviet era. I believe we have made a major step forward by creating a very good base and physical infrastructure. This will be a scientific and education centre. We will certainly succeed if we follow through on all these areas.

Thank you.



Kevin Rudd:

Thank you, Mr President. In fact, I had the opportunity yesterday to walk around this campus. It is pretty impressive. I think a lot of university presidents around the world will be envious of the infrastructure that’s been put here very recently. And to confirm, the teachers here told me that you are getting faculty from around the world, you’ve got a couple of Australians arriving I think next year. They will be interested in the beer supply as well.

I am also interested, Mr President, in the other aspects of what you have talked about. You have mentioned the fact that you received expressions of concern from a number of businesspeople about the difficulty in getting visas, and visa access etc. And I certainly recall the experience of a friend of mine from Hong Kong. We were all APEC members here but the use of the APEC business card has not been as effectively recognised at Russian border posts as it could be. And I think that would be a huge thing to help for the future as well.

On the plan that you have outlined – it’s an impressive plan. The study that has gone into, for example, the Chinese special economic zone experience. It is solid study. Free ports? The Chinese experimented with those successfully. Special economic regions you were talking about, the areas, all thirteen of them. And having lived in China when they first did those things back in the 80s, it really was a twenty year period before you saw the product of the initial investment. And then — history speaks for itself.

Let me put you another observation, Mr President, for your further reflection, and something which comes from a number of the businessmen here. They’ve looked at the plans, they’ve looked at the tax concessions being offered in the free ports and in the special economic areas, but they also ask this question about long-term investor confidence, i.e. that the rules won’t change here in Russia for the future, they ask questions about the consistency of the implementation of regulations, and about bureaucracy. So, given these concerns raised by businesspeople from around the region, around the world, again if I could invite your comments specifically on this question, of if you’re speaking to a group of investors, and their baseline concern is confidence and long-term policy and regulatory consistency, here in the Russian Far East, what would your response be?



Vladimir Putin:

This is precisely what we discussed yesterday. We discussed these plans, which have been thought through carefully and are long-term. I think you can all rest assured that we fully intend to make every effort to carry out these plans.

We realise there are some things that are quite fundamental for business development. Tax breaks, of course, which we have introduced. Of course we would like for the entire Russian Federation to offer equal conditions for all economic actors and become a most attractive place for business development, but we realise that this region has some particular circumstances that require special attention from the authorities, and this is why we have decided to offer such big preferences here.

We also see that this is far from enough. The authorities must make an effort to resolve fundamental issues such as infrastructure and energy supply, communications and human resources. We have long-term plans for each of these areas.

Our company heads are sitting just over there. There is the head of Gazprom, for example. If need be, he can tell our partners about Gazprom’s plans and our other oil and gas companies’ plans to develop the energy infrastructure.

Yesterday, the businesspeople talked about how tariff differences can be fatal for business and stifle their development here. It is not good for ordinary people and it is not good for business either, and this is why we have come up with these long-term plans for the years ahead, not just in gas production on Sakhalin, for example, but also in developing pipeline routes in the Far East regions and distributing energy resources among the economic actors and the region’s households. Gazprom’s subsidiary company has already sent a plan for connecting people to the gas network to the Primorye Territory authorities and will do the same in the other Far East regions. We will certainly carry out these plans.

We will carry out projects for developing communications infrastructure in several areas, given the region’s vast size. The first area is satellite communications. Khabarovsk, which is the Far East’s official administrative centre, already has the satellite communications centre offering access to broadband internet and so on.

The second area is fibre optic communications. We have already carried out a project to link Sakhalin, Magadan and Primorye Territory with fibre optic cables. I don’t recall exactly if the cable has been laid to Magadan yet or not, but I think it has. In any case, the work on the coastal facilities is already complete, the stations and coastal infrastructure are in place and a cable reaching 1,800 kilometres has been laid. This will all start operation and will give people the basic conditions they need not just for daily life but also for business development. These are long-term undertakings that have been calculated in our plans and our budget planning.



Kevin Rudd:

Thank you very much, Mr President. Prime Minister Abe, I listened very carefully to your remarks just before, and you are a genuine enthusiast for the development of the Russia-Japan relationship. Those of us who follow these things internationally read very carefully your eight bullet-points at Sochi, and those of us who follow international relations would have observed carefully your cry from the heart today about developing a peace treaty, and agreeing one, between Japan and Russia after all these years, and despite what was almost achieved in 1956. But it’s time to get on with it.

So you, in the framework of what you want to see in the future of the Russia-Japan relationship overall, could you give me a sense therefore of the role of economic engagement within that framework of trade, and investment between Russia and Japan, and the particular role which can be played by, frankly, forums such as this, the Eastern Economic Forum. Prime minister…



Shinzo Abe:

The Russian Far East is developing intensively and I think that this development will have a very positive effect on the region as a whole. As for the Eastern Economic Forum, this is a very important platform for bringing together all with an interest in developing the Russian Far East. President Park Geun-hye is here beside me today, and so are senior officials from many countries’ governments, economic organisations and academic institutions.

Over these last years, Russia has established a number of new organisations and institutions, such as the Ministry for Far East Development, the new special economic zones, and the free ports. The points that Mr Putin noted in particular in his outline of the work currently underway in Russia are, I think, fruitful results of the initiatives he is taking, and these new organisations and institutions are among these results.

For my part, I would propose making Vladivostok and the entire Russian Far East a reliable export base for the Asia-Pacific region. Japanese companies work actively in this area and I hope this forum will strengthen further the cooperation between Japan and Russia. This will enable us to improve the lives of the region’s people, and I am sure that this will become a new driving force for Japanese-Russian relations.



Kevin Rudd:

Thank you very much, Prime Minister. I noticed in your government you have a minister with specific responsibility for Japan-Russia economic relations. And on this trade and investment relationship between the two countries – if you could again outline to me how you see this deepening in sectors in the years which lie ahead. This is obviously a huge priority for you: you’ve proposed meeting the President of Russia here on an annual basis. I understand that after Sochi you’ve invited President Putin to visit your own home prefecture of Yamaguchi towards the end of this year, which is a beautiful part of Japan, in my recollection. So again, looking to the future and the deepening of Japan-Russia trade and investment relations and integration – how do you see this evolving?



Shinzo Abe:

As for our bilateral relations in the economic area, we have great potential that we could develop and we must now identify, realise and make use of this potential. This will benefit people in both countries and will let us open a new chapter together. I think that this is work to open new horizons.

I would propose eight areas as a start for joint work between our countries. They cover a broad range of areas in economic life in both countries, industry, human resources training, industrialisation and raising the level in all areas of our life.

This is why I appointed a new minister who will be responsible for Russian-Japanese economic cooperation on the Japanese side. He will work for Russia and for developing economic cooperation with Russia. I took this step in the aim of achieving bigger and clearer results. The cooperation and partnership between our countries must produce clear results that our peoples will see and welcome. I think this should be our goal.

The Asia-Pacific region is home to nearly 60 percent of the Earth’s population, around 4 billion people. We must promote the ideas of free trade and economic integration in this region. This could become the impetus for further growth in Russia and Japan.

Japan’s post-war growth was driven by the export of cars and electronic goods through free trade regimes. Three-and-a-half years ago, I decided to take part in the talks on the Trans-Pacific Partnership, and I think that this is very important.

In 2012, Russia hosted the APEC summit in Vladivostok, right here in this hall. This was the moment when Russia showed the entire world not just the Russian Far East’s attractiveness, but also its determination to integrate into the Asia-Pacific economy.

I hope very much for wide-ranging cooperation between Russia and South Korea too, so that we can all work together to become part of the Asia-Pacific region free trade zone. Thank you.



Kevin Rudd:

Thank you very much, Prime Minister. President Putin, you’ve heard Prime Minister Abe speak about his passion for developing the Russia-Japan economic relationship. Seeing from Moscow, seeing from the Russian national perspective – give me a sense of its strategic importance. I saw your interview just in last 48 hours where you’ve said on geopolitical questions Russia does not trade territory for economic cooperation. I’ve seen you said it very plainly in terms of the ongoing discussions between the two countries on the southern Kurils and northern territories. If you had a crystal ball and you were looking ahead five years, what is the shape of the Japan-Russia relationship that you would like to see in reality, in practice?



Vladimir Putin:

The magic crystal comes under our national interests. Shinzo [Abe], with whom I established excellent and trusting relations, said that we have our vision and Japan has its vision, and each of us looks at the issue from the perspective of our own national interests. But we do all agree on one thing, namely, that we need to resolve this issue.

The search for a solution is certainly not easy. It was not us who created this problem. In 1956, the Soviet Union and Japan signed an agreement that completely settled the problem. The agreement was signed and was ratified by the USSR Supreme Soviet and the Japanese parliament. But our Japanese partners later decided not to implement this agreement and then the Soviet Union froze its decision too.

Not so long ago, at our Japanese friends’ request, we returned to this issue and are ready to examine it. Of course, settling this issue requires a high level of trust. As I said in the interview I gave to Bloomberg, we need to find a formula that would enable both sides to feel they have not lost out in any way. This is not easy, but we can find such a solution.

The Japanese Prime Minister proposed eight areas for cooperation between Russia and Japan, and I think that this is the only right road to take. Russia and Japan are natural partners in developing trade and economic ties and resolving regional security issues, and we are both very much aware of this. But as I said, we need to find solutions that would not undermine our relations but would create a solid base for building up our ties over the long-term perspective. As I said, this requires finding a solution that would ensure neither side feels it has lost out.

History shows us plenty of successful examples of this kind of approach, and I hope very much that we too will provide just such an example. We want this, Japan wants this, and our foreign ministers are working hard on this. We will support them at the political level, and of course, as Mr Abe said, we are ready to take decisive steps. But all decisive steps must be thoroughly prepared.

It is already clear today that we cannot let slip the opportunities we have today. Two big projects are underway on Sakhalin, for example, Sakhalin-1 and Sakhalin-2. Seventy percent of the energy resources produced there go to Japan. We are studying the possibilities for building an energy bridge now. Of course the Japanese economy has an interest in this project, and so do we. The Japanese have already decided to produce car engines in Vladivostok. A Japanese company would not take this step to its own detriment. We have an interest in developing our automotive industry too. Our Japanese friends and colleagues are willing to accept a high degree of localisation. This has benefits for them and for us and fits completely with our plans.

We visited the new marine biology research centre today. Japanese scientists took part in the discussions there, and from South Korea, and more people will come, scientists, students, people from research centres and universities.

Of course this is in our interests. Our past should not stop us from moving forward. But we do need to reflect on how to settle the problems that are preventing us from moving forward as fast as we would like. I hope that we will settle these problems.



Kevin Rudd:

President Park, thank you for your strong leadership of the Republic of Korea in recent years when you have experienced many quite direct external challenges. In your speech before, you made reference to the particular problems represented by the North Korean nuclear programme, and on those questions you have I think much sympathy and support from around the region and the world. You’ve reminded us also of the importance of geopolitical stability and security underpinning economic growth in the wider region. I very much value your views on what you see as being the major challenges to regional security across North East Asia and outlined the efforts that you have made and are making to respond to those challenges within the framework of Korean foreign policy. President Park.



President of the Republic of Korea Park Geun-hye:

I have always regretted that a region with such great potential for development fails to realise it for various reasons and obstacles. Considering the population and area of the region (it accounts for 25 percent of the world, and more than 20 percent in terms of the economy), it has much potential. Given this potential, and the high interdependence of the countries, I think that in order to realise the development potential, we need to increase our economic cooperation.

And, of course, to revive economic cooperation, peace and stability in the region are a prerequisite. Yet, now, there are two major barriers that are obstacles to realising the potential in Northeast Asia. The first is the threat to security from the development of North Korea’s nuclear and missile capabilities. This poses a dilemma, as it can be a threat to the neighbouring countries and lead to military and defensive instability and confrontation.

The second barrier is the growing mutual dependence of the economies in the region. Historical and territorial disputes exacerbate conflicts in politics and security. On the one hand, economic dependence is increasing, but this increase, and conflicts due to the above factors, leads to what we call the Asian paradox.

First of all, to resolve the North Korean nuclear issue and other issues, we think it’s very important to cooperate and consolidate the influence of the international community.

Sanctions are currently being imposed by the UN. Plus, the Korean government in close cooperation with the interested countries in the six-party talks on the nuclear issue, is stepping up pressure, trying to convince Pyongyang to return to dialogue, and make an effort to resolve this long-standing nuclear issue.

But, even with the insistent attempts to restart a dialogue, North Korea continues to develop its nuclear potential and declares itself a nuclear power. Thus, the North Korean nuclear issue has become a real threat. Therefore, it requires the clear implementation of UN Security Council resolution 2270, which would leave North Korea with no alternative other than to give up its nuclear programme. We need to make sure that North Korea agrees to return to the negotiating table for the sake of our country’s future development.

There is another issue related to the Asian paradox. To resolve it, it is important to overcome mistrust, to establish communication and build trust. In this context, the Government of the Republic of Korea is promoting a framework for peace and cooperation in Northeast Asia. This framework is not progressing rapidly enough because of North Korea, but it can still be promoted, and North Korea can be added to this framework in the future.

If we start with complicated issues, it will be difficult to build trust. Therefore, we can start with areas such as emergency response, environmental protection and others, to establish cooperation and dialogue between the two countries, and later, having built up trust through these areas, we can lay the foundations for prosperity and eventually create a platform for dialogue at the highest level, to promote and give substance to our cooperation so as to strengthen mutual trust and create conditions for peace in Northeast Asia, to eliminate the factors that produce anxiety over security in Northeast Asia, to manage bilateral and multilateral conflicts. Therefore, the Republic of South Korea, along with Russia, Japan, the USA, China and other neighbouring countries made efforts to strengthen the multilateral cooperation model, including the Korea-Japan-China trilateral format. We are making such efforts and we hope that we will continue to work together in the Korea-China-Russia format.

Korea-Russia-Japan is another possible model for the format of our cooperation. Korean’s Eurasian initiative, along with the grand Eurasian partnership President Putin proposed are aimed at creating a peaceful and prosperous Eurasian continent. That is the common purpose of these initiatives, so that we can achieve synergy. This should start with increased cooperation in the areas where we could relatively easily achieve tangible results, not only to ensure peace and stability in the region, but also to revive the economy in general. Therefore, I hope that the current Eastern Economic Forum will become an important platform for joint efforts to realise such visions.

Therefore, to achieve these goals we must first resolve the problem with North Korea. Only when this issue is resolved will it be possible to speak of a new era – an era of peace and shared prosperity in Eurasia, so we have to stick to a strict principle of not allowing North Korea to possess nuclear weapons and make more efforts toward this end on the Korean peninsula.

I appeal to Russia, to all the participants of the forum, and look forward to your cooperation and support.



Kevin Rudd:

Thank you very much, Madam President. I think all members of the international community would commend the efforts of Russia, China, the United States, and other members of the Security Council on the passage of the Security Council resolutions on the imposition of relevant sanctions. We’ll come back to that point in a minute.

President Putin, if I could follow one from the observations from President Park. Russia is a global power, Russia is an Asia-Pacific power, we are here in Russia’s Pacific capital Vladivostok, and crossing the bridge you referred to before, or Prime Minister Abe referred to before, I see elements of the Russian Pacific Fleet, and my driver, probably not revealing a national secret, said most elements of the fleet are out at the moment on deployment, and naval exercises I think are underway with China at present.

We are a region where we have a very long list of bilateral security tensions, and we are in a region here, in East Asia and the Pacific, the Western Pacific, where we have many-many unresolved territorial disputes. And so your thoughts, Mr President, on the question of the North Korean nuclear weapons programme, and how do we bring about any form of compliance with the resolution, on the part of the government of Pyongyang, and more broadly, your thoughts on the question of, given the state of our region, is it possible for us to develop more cooperative security arrangements in East Asia and the West Pacific, involving the United States, involving China, involving Russia, involving other parties? For example, all these countries, here on the stage, including the Americans and the Indians and others, and the Chinese, are members of the East Asian Summit. It has a soft security mandate, in terms of enhancing security cooperation. Can we build that over time to be more comprehensive in order to begin to encourage the concept of common security in this part of the world? Mr President, I would appreciate your thoughts.



Vladimir Putin:

Of course, from the human values point of view, and from the business point of view, security issues have always and will always be key issues. As for the region we are located in, it is no exception, and for this region which was severely affected by global military disasters over decades. This is very important and relevant.

We are also deeply concerned about what Madame President talked about. Russia has a principled position regarding the matter. We are completely against the distribution of weapons of mass destruction all over the planet and we urge North Korea to comply with the decisions taken by the international community and the United Nations. At the same time, we believe that one should act very carefully to not provoke North Korean leaders to any action to protect their national security.

We need to return the situation back to talks and we will be doing what we can to convince our North Korean partners of this approach. Madame President knows that we have preserved some communication channels with North Korea (DPRK) and we will be using them to reverse the situation from the state of confrontation that it’s in right now. I believe that any action that provokes any further escalation is counterproductive.

But definitely, I would like to end this part of my answer with what I started: we are categorically against any expansion of nuclear weapon activity and distribution of nuclear weapons. In this regard, we share a common position with the United States, the People’s Republic of China, Japan and the Republic of Korea. We must understand that the demand for peaceful coexistence, the demand from people who live in this region for a peaceful life and expanding horizons of cooperation is strong. This is an issue for us, like the problems of the past.

You have spoken about the problem of the islands, about the peace treaty with Japan, but we’ve had this request to restore relations, friendship, trust, cooperation in the past. You know, I remembered one thing. I was saying that, we, recently, several years ago, resumed talks with Japan on the peace treaty. The resumption of these talks was initiated by former Japanese Prime Minister Mori.

There is an interesting story here. His father was fighting in World War II and eventually he was captured by Russians, and after coming back from captivity he became the mayor of a small city and headed the society of Japanese-Soviet friendship. And before his death he wrote in his will that he wanted to be buried in Russia. And we, along with Japanese Prime Minister Mori, when he was in office, went to the cemetery his father was buried in, in a Siberian Region of the Russian Federation.

What does this show? It shows that people who have been through the severe tests of war, bequeathed friendship to us, cooperation and openness with each other. In this, as they suffered during severe military challenges, they saw prerequisites to success in the future, both for their children and for their grandchildren, for future generations. Of course we cannot ignore what we know about the past, but we cannot ignore that positive message, the lessons given to us by our fathers, grandfathers who went through severest tests of war.

As for the Korean peninsula – it’s the same. The Korean people have been through extremely difficult tests. We certainly do not need an inter-Korean crisis that could end in a global disaster. We must do everything we can to prevent such a scenario.

But we need to undertake efforts to develop cooperation where it is possible as well. Madame President spoke about our trilateral plans; they are quite large for this region. It includes the development of transport (railway) infrastructure, and the development of joint projects in energy engineering. I believe we must do everything we can to get back to these cooperative projects.



Kevin Rudd:

Thank you very much, Mr President. You have reminded us all of the lessons of the last world war, and the impact that it had on the families who have direct connection experience of that devastation. And certainly here in Russia we are conscious of the scale of the human loss which is the largest in the world, the people of China, the largest in the world, huge, huge human cost.

But again, turning to the future, as Russia is a global power and we look to how the future global relations of Russia will proceed, of course, we come to the question of the United States as well. The US was a strong Soviet ally during the war, and we have been through a rollercoaster relation ever since between the Soviet Union and the Russian Federation, and the United States.

Turning to the future, we look at this thing, the US presidential election year, and I now live in New York and I watch this thing happen every day in all of its colour and movement: candidate Trump, candidate Clinton. And by Australian political standards, it’s even fairly wild by those standards.

But when we look at the outcome of the election, let me take out that crystal ball again. Let’s just assume for a moment, if Hillary Clinton becomes the next President of the United States. We have our crystal ball here based on the robust principles of national interests, which you reminded me of before, how do you believe, what do you believe can be the future strategic relationship between the two countries if Hillary was to become the President? And what do you think is achievable?

Mr President, I would appreciate your thoughts.



Vladimir Putin:

Unfortunately, our relations are in a rather frozen state, and I believe, through no fault of ours. I have spoken many times on this, and I don’t want to bore our large and dignified audience with all the details and the background. But anyway, after the well-known events of the early 1990s, after the emergence of a modern, future-oriented Russia seeking to build a democratic society and market economy… Mr Chubais is here today, he was one of the people behind the events at the time, and they received a lot of criticism, on the one hand.

On the other hand, everyone has to admit that during that period, the foundation was laid for developing democracy and a market economy. I think that even with all the difficulties, problems and drawbacks, that generation of politicians still solved the task they set for themselves. Of course, we expected that such openness would be met with a similar response from our partners. But this never happened. Instead, they looked through the prism of their national interests and interpreted it their own way.

And how exactly did they interpret it?

The Soviet Union collapsed, so it was time to put the squeeze on Russia. Providing humanitarian aid was fine, but supporting separatists in North Caucasus was also okay because it made Russia’s leadership more amenable to solving other issues – the global ones that probably were more important for our partners. Solving the Yugoslavia crisis without the involvement of Boris Yeltsin, then president of Russia, whom everyone considered their close partner, was fine with them because it met their interests, and they couldn’t care less about the interests of the Russian Federation. And so on.

They can expand NATO eastwards in several waves, despite Russia’s clear objection, under the well-known populist slogan that each country has the right to determine its own security system. That’s true. But security has to be global. Only then can it be reliable.

A country can withdraw from the anti-ballistic missile treaty unilaterally and develop this system under the pretence of addressing the Iranian nuclear threat; and when the Iranian nuclear threat ceased to exist, it was okay to pretend we forgot about everything and continue developing this system. If this kind of thinking persists, I do not think any thaw in relations is possible.

If our partners come around to a different way of thinking, based on mutual consideration of interests, respect for one another’s interests, then our attitude will change completely. We did not initiate the chill in relations, and we are ready at a moment’s notice to fully restore cooperation. But this doesn’t depend solely on us; it depends on how the future leaders of the US administration want to build relations with Russia.



Kevin Rudd:

Thank you, Mr President. We have from the organisers about ten or fifteen minutes to go, so let me just follow on quickly to the point you have just made. I heard you speak at length at the St. Petersburg Forum earlier this year on a range of subjects, and one of which of course touched on the question of continued American and western sanctions.

Now we are two and a half years down that track. Do you see the possibility of political or diplomatic breakthrough with the US and the European Union on this question? Your thoughts also on the implementation of the Minsk Agreement. We would appreciate your thoughts on that because you are in the hot seat on that, and Russia as a global power is highly relevant to the future of those two questions.



Vladimir Putin:

I presumed we would be discussing economic problems of the Asia-Pacific region, but it seems there’s no avoiding this. So let’s say a few words about it. We are not responsible for the Ukraine’s crisis. We did not support the unconstitutional coup in Ukraine, and we did not provoke the reaction of part of the country’s population to these actions.

And this is what led to Crimea’s desire to be part of the Russian Federation, and Donbass – that is, Donetsk and Luhansk – started resisting the regime, which, right after the coup, wanted to establish its authority in these areas. The situation gradually deteriorated. I can tell you only one thing: as for Crimea, the Crimean people made a decision, voted. The question is closed as a matter of history, there is no going back to the previous system, absolutely not.

As for the settlement in south-eastern Ukraine, I am in total agreement with the participants of the process, first of all the participants of the Normandy process, and with the position of the United States: there is no alternative to implementing the Minsk agreements. Everything is written in black and white. By late 2015 amendments were to be made to the Ukrainian constitution. They were not. A law on the special administrative status of these areas was to be enacted. It has not been. A law on amnesty was to be passed and signed by the president. It has been passed by the Rada, but not signed by the president. A law on municipal elections has to be passed. It has not been.

I don’t intend to dwell on this and aggravate things, but I would like to say one thing: we believe that the Minsk agreements have to be executed in full without any restrictions, limitations or reinterpretation. We are not capable of doing it on our own, the Normandy format’s participants have to do this with us, as well as the United States, because only they have real influence with the current government in Kiev. But, of course, without the political will of the Ukrainian leadership it is impossible, and ultimately everything depends on them.



Kevin Rudd:

This will draw our discussion to a close, Mr President and Madam President and Prime Minister Abe. You have quickly reminded us, President Putin, that in this gathering of international business we are fundamentally about the economy and business and trade and investment, and geopolitics is always there playing some role.

But all three of you are now heading off to Hangzhou in China; you are about to go to the G20 meeting. And the G20 meeting occurs at a time when we have had nearly a decade of low economic growth globally. A very slow recovery from the events of the financial crisis of ’08 and ’09.

The Chinese have put forward their agenda for the conference: they talk about four I-s, they talk about innovation, invigoration of the global economy through productivity, they talk about a new generation of interconnectedness, the physicality of connectedness through transport hubs and also telecommunications. And they speak also of inclusion, the fourth I, which is how you bring about the inclusive pro-poor agenda which matches Agenda 2030 of the United Nations to lift the remaining billion plus people around the world out of poverty. But if you are looking at this conference and the need to kick start again global growth, Mr President, can I conclude with a question to yourself: So what are your aspirations for Hangzhou? What views would you wish to see expressed around the table with your colleagues from the G20, and what outcomes would you like to see in order to kick the global economy into a more rapid speed? Mr President.



Vladimir Putin:

I would like to draw your attention to two points that are of interest to us and perfectly complement Russia’s agenda (and, incidentally, the agenda for the Far East). They were, in fact, formulated appropriately by our Chinese friends.

The first point is innovative development. We talk about it all the time, we discussed it at the G20 Summit held in Russia, and we still believe it is extremely important. We are in a region that is extremely rich in mineral resources, but the future of our economy in general and this region in particular depends on high technology. A modern digital economy is our future. I made a point of bringing up the work that has been done already in the aircraft industry, the shipbuilding industry; the achievements we are building on now in aviation, space, science and innovation. This is the first thing we are interested in.

The second is the international financial architecture. True, we recently saw IMF quota increases for emerging markets, but this is not enough, considering the growing weight of the emerging economies, so additional steps will be needed. We will certainly discuss what the Prime Minister and Madame President of the Republic of Korea have said – the lifting of barriers to trade.

In recent years, trade barriers in developed economies have increased by 10 percent – that is a fact, while these barriers actually need to be reduced. We discuss this constantly in APEC, and we are taking steps to change the situation. I fully agree with Madame President: we must certainly seek to expand the space where there is economic freedom, to consider free economic zones, and other forms of cooperation. All this is certainly of great interest to us.



Kevin Rudd:

Well, thank you very much, president Putin, our host here at Vladivostok, thank you very much for having those of us from around the rest of the region here at the Eastern Economic Forum; President Park for your contribution both in your formal remarks and your comments on regional security; and Prime Minister Abe with his detailed knowledge of the streetscape and the local geography of Vladivostok. When we come back here again to Vladivostok, I am sure that Prime Minister Abe will be conducting a tour of the city for all those who wish to contribute. Those who wish sign up to the Abe tour of Vladivostok can line up over there. And the tour will be led by the world’s most famous Italian-American Nintendo plumber whose name is Mario.

Ladies and gentlemen, as these three leaders now make their way to Hangzhou, could we wish them well in terms of our common interest in strong, sustainable and balanced global growth? But also join them in their collective efforts to build the economy of this important region of the world, the Russian Far East. Thank you so much.



Vladimir Putin:

Mr Rudd, thank you very much for participating in our work, and in such a thoughtful and professional manner. Thank you.





The source of information - http://en.kremlin.ru/events/president/news/52808
 
Old September 5th, 2016 #30
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Several of President Putin's meetings in September:





Meeting with Prime Minister of Japan Shinzo Abe



Vladimir Putin met with Prime Minister of Japan Shinzo Abe to discuss the development of bilateral cooperation and interaction in Asia Pacific. The meeting was held on the sidelines of the Eastern Economic Forum, which is being held in Vladivostok on September 2–3.



September 2, 2016 - 11:40 - Vladivostok





President of Russia Vladimir Putin:

Mr Prime Minister, colleagues, it gives me great pleasure to see you in Russia, this time in Vladivostok.

This morning I met with business leaders, including those from Japan, who work in Russia and the Russian Far East. Of course, it is very important to give political support to the business community’s plans to develop bilateral ties.

We have resumed our relationships at foreign ministry level, and we are analysing the proposals you made during your visit to Sochi.

Thank you for coming to Russia, where you are welcome.



Prime Minister of Japan Shinzo Abe (retranslated):

First, I would like to thank you, Vladimir, for your hospitality in Sochi.

Indeed, we had a very productive meeting there, and I am glad that I have been able to honour my promise to come to Vladivostok at your invitation.

I congratulate you on the second Eastern Economic Forum. The Russian Far East has a huge potential and, as far as I know, developing this region is one of Russia’s priorities.

The development of the Asia Pacific region is driving the global economy. The Far Eastern region is important for boosting the development of Japan and Russia because it offers an opportunity for collective work. Vladivostok is the gate to this objective.

I believe that holding this international forum here was well timed. I respect the Russian President’s decision to hold it. Japan is willing to provide any assistance it can. As a neighbouring country, Japan is willing to do its best to further develop cooperation with Russia in this region.

We have been preparing for Vladimir’s visit to Japan since our last meeting, and I am glad to say that this work is going on as planned.

Today I am ready to exchange opinions on a broad range of issues and on the development of bilateral relations as a whole.



Vladimir Putin:

Thank you, Shinzo.





The source of information - http://en.kremlin.ru/events/president/news/52803






Meeting with President of the Republic of Korea Park Geun-hye



Vladimir Putin met with President of the Republic of Korea Park Geun-hye on the sidelines of the Eastern Economic Forum to discuss current relations and their development prospects.



September 3, 2016 - 11:20 - Russky Island





President of Russia Vladimir Putin:

Ms President, colleagues, let me once again thank you for accepting our invitation to come to the Eastern Economic Forum in Vladivostok. Thank you very much for your speech and for taking part in the discussions.

Let me start our discussion today by saying how highly we value the cooperation between our countries. The Republic of Korea is one of our priority partners in the Asia-Pacific region.

We have wide-ranging economic ties in areas from energy, household appliances and electronics to machine-building, chemicals and agriculture. We have some very promising big projects.

I am very pleased to have this chance to meet with you and maintain our contacts at the top level, because we see how our relations are developing through intergovernmental channels and on the parliamentary plain as well. We most certainly support your initiative to hold the Year of Korean Culture in Russia.

Once again, welcome.



President of the Republic of Korea Park Geun-hye (retranslated):

I would like to thank you once again for inviting me as the main guest at the Eastern Economic Forum.

I think that today’s forum saw an active exchange of views and can provide a good, solid basis for intensifying cooperation in the Far East region, not to mention developing our bilateral relations.

Russian-Korean relations have undergone some big changes over the years, but our relations have not lost their value and significance. Close contact and communication is essential if we want to maintain and develop our relations.

I recall several meetings with you, meetings that took place in a candid, open spirit. I would like to continue our conversation today in order to outline the directions for our future joint efforts and the search for opportunities for strengthening our diplomatic cooperation.





The source of information - http://en.kremlin.ru/events/president/news/52809






Meeting with President of Turkey Recep Tayyip Erdogan



Ahead of the G20 Summit in Hangzhou, China, Vladimir Putin had a meeting with President of Turkey Recep Tayyip Erdogan to discuss the restoration of full-scale bilateral cooperation.



September 3, 2016 - 18:35 - Hangzhou





President of Russia Vladimir Putin:

Mr President, it is a pleasure to have another meeting with you, this time here, in China. I am pleased to have the opportunity to discuss the implementation of the agreements we made during your visit to Russia, to St Petersburg.

During our last telephone conversation, you noted that the decisions are not being implemented as fast as we would like. In particular, you said that the agreements on restoring charter flights have not been fulfilled.

As you see, on August 28, the Russian Government signed the approrpiate directive, and yesterday the first charter flight brought Russian tourists to Turkey. We saw that our tourists received a warm welcome there.

Of course, a great deal has to be done to restore full-scale cooperation in all areas. This is what we are going to talk about today.



President of Turkey Recep Tayyip Erdogan (retranslated):

First, I would like to thank you. Indeed, the charter flights have resumed, and the first flight arrived yesterday.

Today we will have a follow-up to the St Petersburg meeting. Here we shall consider all the issues that were discussed there, both political and economic ones – we will assess and consider all the aspects, all the issues.

We will have an opportunity to discuss an energy-related matter, because there has been some progress in that area. I am confident that some steps that we will have to make will help us to advance further in that area, and will contribute specifically to the development of these relations.

Let me take the opportunity to thank you once again.



Vladimir Putin:

You see what a powerful delegation I have brought with me. These are our ministers, heads of the largest energy companies: we have Gazprom, Rosneft and Rosatom here, the Energy Minister, the head of our Investment Fund, and the Economy Minister, while our Foreign Ministers will try to outdo each other in eloquence while we listen to them.



Recep Tayyip Erdogan:

I have also brought a substantial team along. Accompanying me are the Deputy Prime Minister in charge of economic issues, the Foreign Minister, the Economy Minister, the head of our country’s intelligence service, and some other colleagues.



Vladimir Putin:

If the head of intelligence is here, we have nothing to talk about – he must have already briefed you on everything (laughter).

We are happy that political life in Turkey is coming back to normal. We can see that Turkey is going through disturbing times; it is fighting terrorism and facing grave terrorist crimes.

We have stated number of times our stand on fighting terror. I am certain that you are doing it successfully, but when the situation in the country is completely normalised, we will be able to make headway along the path of our interaction.





The source of information - http://en.kremlin.ru/events/president/news/52816






Informal meeting of BRICS leaders



An informal meeting of the heads of state and government of BRICS member states (Brazil, Russia, India, China, and South Africa) took place in Hangzhou before the G20 summit.



September 4, 2016 - 06:30 - Hangzhou





President of Russia Vladimir Putin:

Mr Modi, Mr Xi Jinping, President Zuma, President Michel Temer,

I would like to start with our common strategy. We know that on the basis of the Strategy forBRICS Economic Partnershipadopted at the last year’s BRICS summit in Ufa, Russia, new large-scale joint projects are being prepared for launch, primarily in technology, industrial cooperation, energy, and agribusiness.

We intend to expand contacts in other areas as well – in science, education, culture, on issues of social policy, healthcare and sport.

We support cooperation between our parliaments, regions, trade unions, youth organisations and civil societies.

Colleagues, we can see that contradictions in the world are indeed escalating. The rise of inequality between rich and poor nations is growing, the struggle for resources, for access to consumer markets, for control of transport arteries is becoming more intense. This is the backgrounds for the growing potential for conflict, as hotbeds of tension continue to multiply.

My Brazilian colleague has just mentioned the long crisis that has engulfed the Middle East and North Africa. Civil wars instigated from abroad, the disintegration of government structures in Iraq, Libya (which President Zuma spoke about with concern) and Yemen, have turned this region into a place of chaos and a foothold for international terrorism which troubles all of us, causing an uncontrollable wave of migration.

The expansion of ISIS and extremists of all stripes united under its banners has become a real security challenge for our countries as well, including Russia and its southern borders.

The most dangerous situation is in Syria, which has already been discussed here. This is why we responded to the request of the legitimate, let me stress, the legitimate government of that country for assistance in the fight against terrorist groups.

The Russian Aerospace Forces have dealt a heavy blow to the terrorists and their infrastructure, and have preserved Syrian statehood, which I think is absolutely vital.

Together with other partners we managed to enforce a ceasefire in some regions of Syria and to launch inter-Syrian talks, because ultimately this sort of conflict can only be resolved by political means. We are confident that terrorist threats can only be countered by uniting the efforts of all interested nations.

In general, the international community needs to work together to solve other complex problems, including those facing the global economy, as Mr Modi said, and Mr Xi Jinping as well.

Unfortunately, the world economy has still not overcome the effects of 2008–2009 financial crisis, and global growth is still uneven and very fragile. According to forecasts, growth is unlikely to reach the pre-crisis level before 2019. Among the limiting factors is the volatility on foreign exchange and commodity markets, the lack of coordination of monetary policies, and the high debt levels in developed economies.

In this regard, we support the priorities of China’s G20 presidency, aimed at stimulating the global economy – especially through the introduction of modern technologies.

We welcome Chinese President Xi Jinping’s intensive work to prepare this G20 Summit and its substantive package of final documents. It is encouraging that many of them build upon the G20 agreements made in the course of our joint work in St Petersburg, Russia.

It is important to strengthen our countries’ positions in the global financial system. I would like to congratulate our Chinese partners on the Special Drawing Right basket being expanded to include the Chinese yuan from October 1, 2016.

The BRICS states have already increased their total share in the IMF capital to 14.89 percent, very close to the blocking threshold of 15 percent. And they certainly need to continue in this direction, advancing the reform of the IMF.

We need to make the BRICS Pool contingent of foreign exchange reserves and the New Development Bank fully operational (here I totally agree with my colleagues), to adopt the bank's strategy, to provide loans in local currencies, and to begin financing specific projects.

We are greatly concerned about the WTO situation, which was also mentioned here. That organisation is losing credibility, losing its status as the only universal negotiating platform for the development of global trade rules due to the stagnation of the Doha Round. As a result, various private associations, such as the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership, are gaining momentum; they seek to replace the WTO rather than complement it.

We see this as a response by some of our partners to difficulties they encountered in the course of WTO negotiations. But this is not the best way to solve problems. The best way is to negotiate and reach a compromise.

Russia calls for the harmonisation of regional economic formats, based on the WTO rules and principles, the principles of transparency and respect for each other's interests.

It is in this spirit that we are shaping the Eurasian Economic Union’s activities and negotiating the linkage of the Eurasian Economic Union (EAEU) and China’s Silk Road Economic Belt.

I am certain that in the future, all of the above will create a grand Eurasian partnership that is open to cooperation with all interested states and integration alliances.

We hope to discuss in more detail the prospects for our group’s development at the upcoming October 15–16 summit in Goa, India. On that note, we wish Mr Modi and all our Indian friends success in preparing that event.

Thank you.





The source of information - http://en.kremlin.ru/events/president/news/52819






Meeting with President of China Xi Jinping



September 4, 2016 - 08:10 - Hangzhou





President of China Xi Jinping (retranslated):

It is a great pleasure to receive my old friend President Putin and all of the Russian delegation here in Hangzhou. I wish you a warm welcome to the eleventh G20 summit.

As one of the key global economies and leading countries with established markets, Russia plays a big part in promoting health and stable global economic development and developing global economic governance.

Russia successfully hosted the G20 summit in September 2013. I am sure that your participation will help us to achieve positive results at this summit too.

You made a successful visit to China in June, when we celebrated the 15th anniversary of our major bilateral treaty [on friendship, good neighbourliness and cooperation], signed and announced three important joint statements and witnessed the signing of around 30 bilateral cooperation agreements.

This clearly demonstrates our mutual commitment to deepen our comprehensive partnership and cooperation, showed in full measure that our countries share common positions on current international and regional issues, and clearly stated our common call to support global strategic stability and work for peace and security in the world.

This is exceptionally important in today’s complex and fast-changing world.

Thank you.



President of Russia Vladimir Putin:

President Xi Jinping, friends,

We celebrated the 15th anniversary of our friendship treaty this year and, during my visit to China in June, discussed in detail all different areas of our cooperation.

Our relations are developing just as well as we hoped. There are problems linked to the general global economic development situation, but there are positive aspects too. Our exports are growing overall, including in such important areas as exports of vehicles and equipment. We are grateful to you for the close attention the Chinese government gives to this work. This is improving our export and mutual trade situation in general. Of course, we do still have a lot of work to do, but I am confident that we are on the right track.

I just met in Vladivostok with members of the Chinese business community. Overall, our Chinese partners are happy with the way we are building relations on the practical level, and I am pleased to hear that the political efforts we are making at the top are producing results for those who are engaged in the real economy and are at work on the ground in this area.

We will continue pursuing our contacts at the political, parliamentary and public levels. We have youth organisations working together, tourism exchanges, and we continue our cultural cooperation.

We certainly wish our Chinese friends and you personally success with holding this G20 summit. We see how much effort you have put into preparing this big event. We support the main agenda you have set for this summit and it will be our pleasure to take part in the discussions.

Thank you very much for this welcome.





The source of information - http://en.kremlin.ru/events/president/news/52820






Meeting with Prime Minister of Great Britain Theresa May



Vladimir Putin and Theresa May discussed issues of mutual concern to Russia and the UK.



September 4, 2016 - 09:30 - Hangzhou





President of Russia Vladimir Putin:

Madame Prime Minister, colleagues,

I am very pleased to meet with you in person and congratulate you on being appointed Prime Minister of Great Britain.

It is obvious to everyone that you and your team are facing some challenging tasks. But all of us are facing challenging tasks. We sincerely wish you success and hope we can take our bilateral relations to a higher level relative to where they are now.

And here we certainly have much to do – both in the political and economic spheres.



Prime Minister of Great Britain Theresa May:

Thank you very much for your welcome, Mr President. And I am pleased to have the opportunity to meet you for the first time. And we meet after an important event has taken place. I am pleased that Princes Anne was able to attend Arkhangelsk for the ceremony, which recognised the Arctic convoys.

As you say, the United Kingdom, following its decision to leave the European Union, has some challenges ahead, but we will make a success of this. But as you also say, there are many challenges in the world that are faced today. And while I recognise there will be some differences between us, there are some complex and serious areas of concern and issues to discuss, I hope we will be able to have a frank and open relationship and dialogue.





The source of information - http://en.kremlin.ru/events/president/news/52822






Meeting with Deputy Crown Prince of Saudi Arabia Mohammad bin Salman Al Saud



The President met with Deputy Crown Prince of Saudi Arabia Mohammad bin Salman Al Saud, on the sidelines of the G20 summit.



September 4, 2016 - 13:40 - Hangzhou





President of Russia Vladimir Putin:

Your Highness, colleagues, I am very glad to see you again.

We attach great importance to expanding multifaceted and mutually beneficial cooperation with Saudi Arabia. This also applies to our bilateral relations, keeping in mind that we are the largest oil-producing countries, and to international issues. We believe that without Saudi Arabia no serious issue in the region can be resolved, and it is important for us to maintain a regular dialogue with you.

The meeting with His Majesty King Salman at the last G20 summit in Antalya was very important. Please give him my best wishes.

You and I have also discussed opportunities for cooperation in other areas, including military technical cooperation, and cultural and humanitarian exchanges, in the broadest sense of the word.

I am glad to have the chance to talk to you on the sidelines of the G20 meeting here in China.



Deputy Crown Prince of Saudi Arabia Mohammad bin Salman Al Saud (retranslated):

Thank you very much for your kind words.

For us, the relations between Russia and Saudi Arabia are also of great importance. They are certainly strategic in nature and, therefore, cooperation and coordination between Russia and Saudi Arabia are essential.

Indeed, as you said, our countries are the two largest players in oil production, so no stable oil policy can be pursued without the involvement of Russia and Saudi Arabia. And so I believe that, with the help of our continued cooperation, we can gain many benefits with regard to further developments on the oil market.

We also believe that Russia is not only an important world player, but also a great power. So today, when all eyes are riveted to the Middle East – and we are in the heart of the Middle East – we hope for stability and security. And I think that you, our friends, think about it, too.

We also hope that our work in the Middle East will contribute to stability and security throughout the world, as the Middle East is truly an artery, the largest hub of world trade, of global life.

And so, being at the centre of the Islamic world, the Arab world, the Gulf region, we should play a major role and bear an important responsibility.

As for our cooperation with Russia, it proceeds on a privileged basis. That is why our work together brings a lot of benefits to the Middle East.

We would certainly prefer to avoid any negative scenario in the Middle East, and so would you. We would like to ramp up economic cooperation and want it to not just continue, but to progress faster.

Please accept the best wishes from the Custodian of the Two Holy Mosques, as he is also very interested in the development of relations between Russia and Saudi Arabia.

Thank you very much, Mr President.





The source of information - http://en.kremlin.ru/events/president/news/52825






Meeting with French President Francois Hollande



Vladimir Putin met with President of France Francois Hollande. The meeting took place in the Chinese city of Hangzhou, where the leaders of the two countries arrived to participate in the G20 Summit.



September 4, 2016 - 18:20 - Hangzhou



President of Russia Vladimir Putin:

Mr President, colleagues,

It’s good that we have found the time to meet on the sidelines of the G20 Summit, as it provides an opportunity to discuss bilateral relations and issues that we consider pressing and that we are working to resolve.

We have already spent enough time talking about international and global economic problems – so now let’s turn to small, modest issues that concern both France and Russia.



President of France Francois Hollande (retranslated):

Mr President, dear Vladimir,

I looked forward to meeting with you personally during the G20, because political problems have economic implications, because, when there is war, when there are conflicts, terrorism and refugees – all this has consequences for the economy, not to mention the people’s suffering when they face such problems.

I would also like to discuss preparations for the October visit to France you are planning. This visit will include a series of symbolic gestures, such as the inauguration of the Russian centre.

Also, I think we should discuss the situations in Syria and Ukraine, since we are all involved in addressing these problems. As for Ukraine, we need to discuss further cooperation in the Normandy format. As for Syria, here we need to move towards full-fledged dialogue. Despite certain military decisions already adopted by all parties, we still need to work towards resolving the crisis by political means. I think we all share a common goal, which is to combat terrorism.





The source of information - http://en.kremlin.ru/events/president/news/52826






Meeting with German Chancellor Angela Merkel



At the end of the second day of the Russian President's visit to China, Vladimir Putin met with Federal Chancellor of Germany Angela Merkel.



September 4, 2016 - 19:50 - Hangzhou





President of Russia Vladimir Putin:

Madame Federal Chancellor, colleagues, good evening,

Though it’s late, I think it’s good that we have this opportunity to talk about our bilateral relations, and discuss some issues that are of mutual interest, that we are persistently working on to find solutions.

Let's try to do some work. I hope you still feel up to it.



Federal Chancellor of Germany Angela Merkel (retranslated):

Don’t worry, I’m fine. I am very pleased to have the opportunity to talk. It’s still daytime in Europe, so I'm still fresh.

I think the issues that we will discuss are so important that it’s good we have this opportunity to discuss them on a bilateral basis now. I mean, for example, Ukraine.





The source of information - http://en.kremlin.ru/events/president/news/52827






Meeting with US President Barack Obama



Vladimir Putin met with President of the United States of America Barack Obama on the sidelines of the G20 Summit. The two leaders discussed the situation in Syria and Ukraine.



September 5, 2016 - 09:50 - Hangzhou



Earlier in Hangzhou, Russia’s Foreign Minister Sergei Lavrov met with US Secretary of State John Kerry.





The source of information - http://en.kremlin.ru/events/president/news/52829






Meeting with President of Egypt Abdel Fattah el-Sisi



Vladimir Putin met with President of the Arab Republic of Egypt Abdel Fattah el-Sisi in Hangzhou. The two presidents discussed bilateral cooperation in various areas.



September 5, 2016 - 14:30 - Hangzhou



President of Russia Vladimir Putin:

Mr President, friends, it is a great pleasure to see you.

Mr President, we already had the chance in the corridors yesterday to start discussing our common interests and affairs.

I want to start by saying once again that Egypt is a priority partner and Russia’s longstanding and reliable friend. We have a rich history of cooperation and our bilateral relations have become particularly fruitful over these last years and offer great interest.

I value our good and trusting relations, Mr President. I note too that our relations are developing through our government and parliamentary channels, and we have organised cooperation between our security councils and law enforcement agencies.

Economic cooperation matters are at the centre of our attention, of course. In short, we have plenty to discuss and we are very pleased with this.

I am happy to see you.



President of Egypt Abdel Fattah el-Sisi (retranslated):

Thank you very much, Mr President.

Let me start by thanking you for this opportunity to meet and talk today.

Egypt is constant in its desire to develop our bilateral relations and take them to a new level of strategic partnership.

Of course, our contacts constantly underscore the need to fight terrorism, given the regional and international events we see today. We always take into account our peoples’ national interests and security concerns, and we think that Russia can help to achieve security and balance throughout the world.

Mr President, we greatly value the successes achieved over recent years in bilateral cooperation. We have concrete results. In particular, last year, we signed the contract for building a nuclear power plant at El Dabaa, and Russian company Rosatom has already started work.

I also note the on-going contacts between our industry ministries on establishing a Russian industrial zone in Egypt, which would take our partnership to an unprecedented new level.






The source of information - http://en.kremlin.ru/events/president/news/52832






Meeting with President of Argentina Mauricio Macri



September 5, 2016 - 15:30 - Hangzhou





President of Russia Vladimir Putin:

Mr President, colleagues,

I am very pleased to have this chance to meet you and to continue the interstate relations that our countries have built up over these last years.

We have active contacts through our ministries and agencies in a broad range of areas. We have inter-parliamentary cooperation and work together closely at the international and regional levels.

If I recall correctly, Argentina will hold the G20 presidency in 2018.

Argentina is one of Russia’s most prominent trade and economic partners in Latin America. Despite the many difficulties we discussed today, our bilateral trade increased by 1.7 percent over the first six months of this year.



President of Argentina Mauricio Macri (retranslated):

Mr President, it is also a great honour for me to meet you in person and further strengthen the ties between Russia and Argentina.

Mr President, we also consider it very important to develop our bilateral ties in different areas. This concerns culture, sports, and developing linguistic ties too. In this respect, of course, one important matter is that of the RT – Russia Today – television channel.

Another very important area is energy sector cooperation. As you know, Argentina is experiencing considerable difficulties in this area and we need to deepen our cooperation in this area, particularly as concerns hydroelectric power plants.





The source of information - http://en.kremlin.ru/events/president/news/52833






G20 Summit



The 11th G20 Summit has begun at the International Exhibition Centre in Hangzhou.



September 4, 2016 - 12:30 - Hangzhou



Opening remarks at the first working meeting at the G20 Summit



President of Russia Vladimir Putin:

Mr President, colleagues,

We are all speaking about problems and difficulties we are facing in the world economy, and it is understandable, as there are many. However, today we can see a slow yet positive trend of recovery in the global economy.

As for our country, we regard the results of our efforts as insufficient, as modest, but our economy, nevertheless, has stabilised. We have retained our reserves, considerably reduced capital flight (it decreased five-fold compared to last year); inflation has been halved. The budget deficit stands at 2.6 percent, and we have a fairly low unemployment rate of 5.7 percent. Foreign debt has been reigned in at a sufficiently low level of just 12 plus percent with a continued trade surplus: [a positive trade balance of] $45 billion is an acceptable amount for an economy of our size.

We are now witnessing modest growth in industrial production, while we expect GDP to resume growth in the very near future. We are determined to cut the budget deficit and to continue efforts to lessen the budget’s dependency on exports of hydrocarbons and raw materials.

We shall continue to pursue a balanced policy to promote macroeconomic stability, and to liberalise and improve the business climate. We are improving our legislation, tax regulation, and technical standards to incentivise companies to increase labour productivity and introduce labour- and energy-saving technologies.





The source of information - http://en.kremlin.ru/events/president/news/52824
 
Old September 6th, 2016 #31
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Answers to journalists’ questions



Vladimir Putin answered Russian journalists’ questions following his working visit to China to take part in the G20 Summit.



September 5, 2016 - 17:20 - Hangzhou





President of Russia Vladimir Putin:

Good afternoon.

Let’s dispense with opening remarks and get straight into the discussion. I will try to answer the questions of interest to you.



Question:

Mr President, this year, for the first time, the G20 summit’s main themes were closer in the applied sense to matters relevant for Russia’s domestic economic situation too. They included building an innovative economy, access to new technology and to technology in general, fair trade, and a new financial system. Could you tell us how the discussion with your colleagues went? Was it more of an exercise in eloquence (as you said here), or will it have practical relevance for Russia?



Vladimir Putin:

I was joking when I spoke of an exercise in eloquence. I was referring to the foreign policy side of relations. As for the actual work, it was perfectly serious and substantive. It reflected the interests of all G20 countries, including Russia.

This year, the Chinese presidency proposed that we concentrate on today’s key questions. What are these questions? First is how to ensure faster economic growth. Yesterday’s instruments, while they have not grown rusty, I hope, no longer produce the desired effects. I am referring to investment, which is subdued, trade, which is not growing, and other dimensions.

Our Chinese partners and friends therefore proposed examining the growth rates that will be most promising over the long term. These are above all innovation and innovative development.

They put the focus on the need to exchange information and so on and on scientific cooperation in digital information support. We think these are important matters. This concerns protecting the interests of those who create these innovations and involves issues such as civilised protection for patents. That is one aspect. There are many aspects involved. But this is one main area of work.

Second, for the first time, we started talks and made a start on drafting work for documents on establishing common rules for investment activity.

Third, we continued our discussion on ensuring development principles and goals and the set of components needed for achieving these goals.

What I think is important and useful for Russia is that these discussions continued and confirmed the conclusions that we made during our presidency of the G20 in 2013 in St Petersburg. This concerns areas such as combating tax evasion and the shrinking tax base.

This was all a central focus at the summit. There were issues of less central attention, but which we nonetheless consider important. There are problems and issues that hamper development in general, for example.

We all know these issues. They include uncontrolled migration, regional conflicts, terrorism, the need to protect the environment and so on. All of this is reflected in our documents.



Question:

Japan is still a member of the G7. Do you think the G7’s common position on Ukraine could hinder development of bilateral relations with Japan? Also, how do you see Prime Minister Abe’s decision to invite you not to Tokyo or to Isashima, but to Yamaguchi?



Vladimir Putin:

You shouldn’t go looking for problems in our relations in connection with the issues you mentioned. Japan has a particular relationship with the United States, not because it is a member of the G7, but because in its foreign policy line, it takes into account and to a large extent looks to the opinion of its main strategic partner – the United States.

This was what led to the restrictions in our contacts over the last 12–18 months. We found this odd in the sense that Japan seemed to have an interest in developing our dialogue, especially on a peace treaty and on resolving related issues (our talks on the territorial issue), but at Japan’s initiative these contacts were effectively suspended.

Now though, we have returned to the negotiating table and are working on these matters. I think that Prime Minister Abe made some very interesting proposals when he came to Sochi. He proposed that we reflect on and develop eight main areas for economic cooperation. I think this is extremely important in order to resolve the pressing economic tasks our countries face today, and in order to put in place the conditions for resolving other issues too, including those of a political nature.

Can Japan’s position on Ukraine get in the way here? No, it cannot. I don’t see anything here that would obstruct our relations. I have discussed all this with the Prime Minister, and he has raised the issue. I have explained to him what is going on, but overall, we do not see any problems here (not for now, at least). But putting in place good conditions for resolving all issues between us, including concluding a peace treaty, is extremely important.

Just recently, someone mentioned our relations with the People’s Republic of China and the resolution of not territorial but border issues. I said then and can repeat now that we spent 40 years in talks with China on the border issue and finally settled the problem. This was achieved on the basis of the high level of trust and cooperation we had attained by the time we concluded the agreement.



Question:

Did you make any progress on the situation in Syria in your talks with the US President? I understand that you discussed the same matter in your talks with the Turkish President. Are Turkey’s objectives in Syria clear to you? Is there a possibility that Turkish troops could enter Syrian territory and stay there?



Vladimir Putin:

We cannot be 100 percent certain, but we are continuing our dialogue on these matters, on Syria, with our Turkish partners and with our American partners. We are not giving our support to anything that would go counter to international law, and we cannot do this. That is my first point.

Second, for all the difficulties, we nonetheless have moved closer in our positions and in our understanding of what we can do to defuse the situation in Syria and search for mutually acceptable decisions. I don’t think I can say anything final right now because the US State Department and our Foreign Ministry are still finalising several preliminary agreements, but I think that we are on the right road and could reach an agreement for some period of time on what we can do together, and I emphasise this, by way of strenuous efforts to improve the situation in Syria. Of course we would have to consult with the Syrian government and would have to keep our other partners informed, including Iran.



Question:

Could I continue on this subject? Was Turkey’s recent decision to send troops into Syria a surprise for Russia? This was your second meeting with President Erdogan in the last month. How do you assess the efforts to restore bilateral relations?



Vladimir Putin:

As far as surprises are concerned, we have our Foreign Ministry and intelligence services precisely to reduce the number of surprises. In principle, we had an idea of what was going on and where things were going. You could see it after all, the troop movements, the objectives, and the problems that Turkey has encountered in connection with events in Syria. And Turkey has many problems here. I think you don’t need to be a great analyst to realise what kinds of problems these are. We see all of this and overall, there were no surprises for us here. But at the same time, I say again that we will not welcome any action that runs counter to international law’s norms and principles.

As for the question of restoring our bilateral relations, this work is going to plan. It is progressing not as fast as our Turkish partners would like, but we have an interest in acting swiftly too. It is always a very rapid process to demolish something, but building it anew is always far more complicated. It involves various procedures, government decisions related to, say, our phytosanitary agencies’ work and so on. But this work is progressing.

What is most important is that we have established the base for restoring full-fledged cooperation. This foundation was laid by the letter the Turkish government sent to us, apologising for the tragic incident with our plane and the death of our pilot. This was also connected to the fact that, as you know, Turkey has arrested the pilot that shot down our plane. The person who shot from Syrian territory at our pilots when they ejected has also been arrested.

Now we are hearing that this incident took place without the Turkish government’s approval in the aim of complicating our relations with Turkey. Apparently, this was done by the same people who later attempted to carry out a coup d’état. We do not know the full facts here and are waiting for the results of the investigation the Turkish authorities are conducting. In any case, we see the Turkish government’s desire to restore our bilateral ties.

As for the Turkish people, I think that everyone can see that the Turkish people welcome this restoration of ties, and many people, hundreds of thousands, perhaps millions of people in Russia and in Turkey sincerely want to restore the ties between our countries.



Question:

Mr President, your meeting with your US counterpart, Barack Obama, on the summit’s sidelines is one of the interesting subjects. You mentioned the Syrian issue, and you also discussed Ukraine. What other issues did you discuss? How did the meeting go in general? Did you discuss the sanctions issue at all? Could you tell us about this meeting?



Vladimir Putin:

Yes, we did raise the sanctions matter in passing, but we did not discuss it in detail because I see no sense in discussing matters of this sort. It was not our initiative to impose these sanctions. I think discussions on this issue will be something for the future, if we get to this point. I do hope that we will eventually get to this point and will normalise in full our relations with the United States too, which is certainly a very important partner in our eyes. Our bilateral trade with the United States was rather minimal to start with though, only around $28 billion, and now it has dropped to $20 billion. In other words, to be honest, our trade and economic relations with the United States are not so important.

As for restrictions on technology, they never ended and the CoCom restrictions were never properly abolished. The lists shrank and were formally lifted, but restrictions remained even when relations were at a high point (in the early and mid-1990s), when there were seemingly no clouds on the horizon. Even then, restrictions were still in place. Now, they have simply increased the restrictions a little. They have not done so completely and absolutely. But this is not a normal state of relations and we would like to restore full-fledged relations with the United States.

As for the issues we really did discuss, the first was Syria and the possibilities for our cooperation in this area. Both countries have an interest in fighting terrorism and we sense (I do, at any rate) the US President is also completely sincere in wanting to achieve results in fighting terrorism and resolving the Syrian conflict.

The second matter we discussed, of course, was settling the situation in Ukraine.



Question:

Mr President, could I clarify on relations with Japan? At the plenary session [of the Eastern Economic Forum] in Vladivostok, Shinzo Abe made a rather emotional appeal to you, even using the more intimate form of address, calling on you to take on the responsibility and make a historic decision. He was referring to the territorial issue, of course. Our countries have differing views on this issue. Did you discuss what Japan wants and what Russia is willing to accept? Where is the ‘red line’ with regard to the Southern Kurils?



Vladimir Putin:

Let’s not start looking for ‘red lines’. Let’s not head into dead ends but travel roads open to traffic, two-way traffic, what’s more.

As for the use of the intimate “ty” [you] form of address, Shinzo and I are on these terms in general and this is the form of address we usually use with each other, call each other by our first names and use the intimate form of ‘you’. He spoke emotionally, as you say, but he is in general a politician with character and an excellent orator. He is a good speaker. He demonstrated this at the meeting in Vladivostok. The value in his speeches and remarks wasn’t in this though, but in the fact that he pursued his ideas on the eight areas he set out for our cooperation. We discussed this in more detail and outlined plans and steps for working towards these goals. These are very interesting plans. They are not secret, but I don’t want to lose time on this right now. Take a look at the proposals.

As for ‘red lines’, let me say again that we should not talk about ‘red lines’ in this case. After all, we have returned to the negotiating table. I have said many times that this treaty was nothing secret, the 1956 treaty. The Soviet Union obtained this territory as a result of World War II, and this was cemented in international legal documents.

The Soviet Union, following lengthy and difficult negotiations with Japan, signed a treaty in 1956, Article 9 of which, I think it is – I’d need to check – states that the two southern islands are to be handed over to Japan. Two islands are handed over.

Not everyone here has a legal background. As someone with a lawyer’s training and someone who has worked in international law, international private law, it is true, I can tell you that the treaty provisions say “are handed over”, but do not state on what conditions this handover is to take place, and who has sovereignty afterwards.

There are many issues that required further clarification following the signing of the 1956 treaty. What is important here though is that after the Japanese parliament and the USSR Supreme Soviet ratified the treaty, Japan renounced its implementation. They took the view that the treaty did not give them enough and decided to lay claim to all four islands. In the end, neither side implemented the treaty and it was simply left in suspension. Later, the Soviet Union declared too that it did not intend to implement the treaty. Later on again, the Japanese asked us to return to discussions. We agreed and talks began. This is where we are at today.

Why do I bring up this 1956 treaty? The Soviet Union received these islands and was ready to return two islands. As I said, it is not clear under what conditions this was to be done, but the islands were to be handed over. There are issues here regarding economic activity, security, many issues, and there are humanitarian matters too. All of this is being examined and receiving our attention.



Question:

Mr President, I have a question on BRICS. You held a BRICS meeting on the sidelines of the G20. The BRICS countries have stable economic and political situations, but there are exceptions, Brazil, in particular. In this respect, how comfortable was the meeting in terms of discussing important issues and planning ahead? What proposals will Russia take to India, and what will be on the agenda?

Since this is an informal discussion, can I come back to President Obama? We heard that it was his initiative to meet with you. When did he let you know? When did he approach you yesterday and propose to meet? When you left the hall, you glanced at the watch. Was this because you talked for longer than you had expected, or that the meeting was more productive?



Vladimir Putin:

As far as the watch goes and who approached me and when, I don’t really pay such attention to these things. What does really matter? [Foreign Minister Sergei] Lavrov came up to me, or [Presidential Aide Yury] Ushakov, and said that the Americans wanted to meet. I don’t remember now exactly when and where. This doesn’t really matter. They said they wanted to meet, and why should we avoid direct contact with our key partners on security issues? On other issues too we have many intersecting interests. We exchanged a couple of words in passing yesterday and confirmed that we would meet today. And we did indeed meet today.

We had quite a detailed discussion. I do not recall now when I glanced at the clock and why. But we did not have a rushed discussion; we looked at matters in depth. We spent the time discussing and examining the details. I think that we did succeed in hearing each other and gaining an understanding of the problems before us. There are some technical matters to work out. If [US Secretary of State John] Kerry and [Sergei] Lavrov can do this, we will have made another step forward in resolving the Syrian conflict.



Question:

Regarding BRICS?



Vladimir Putin:

Regarding BRICS. I’m sorry I didn’t answer this question. Every country faces problems at times. We are now witnessing difficult internal political processes unfolding in Brazil. But problems of an economic and social nature had piled up before that. This is true. There are many. Brazil is a huge country, it is the largest power in Latin America with very good development prospects, a very wealthy country with very talented people.

How did BRICS come to be? Let me remind you. When we had a G8 Summit in St Petersburg, I suggested to the Prime Minister of India and the Chinese President that the three of us meet. As you know, there are always certain problems between neighbours, but we managed to agree on that, we met, and then started to institutionalise it, and later it turned into regular contacts.

And then Brazil and South Africa decided to join us. We all thought it was a good thing because it would open up the continents of Latin America and Africa. But every nation has its problems. You have problems, and so do we. And China might have problems, as well as the South African Republic. So what? This is why we joined together, to look for ways to overcome those problems.



Question:

You met the new Prime Minister of Great Britain Theresa May yesterday. What was the outcome of the meeting, and what are your impressions of her? Do you think there are prospects for normalising relations between the two countries, and if so, how would you characterise them?



Vladimir Putin:

I think this is clear. The Prime Minister is just beginning her job, she needs to sort out domestic issues. But there used to be very stable, full-scale relations between Great Britain and Russia, and we are ready to return to that. The issue is not with us, but the British side. We noted that recently there were events held to mark the anniversary of the Arctic convoys, and Princess Anne came to visit.

There have been a great many problems in our history, yet there were also moments that undoubtedly still unite us. We remember it, we know it and we are ready to restore relations with Great Britain, to go with them as far as they wish, but of course, we are not going to impose anything, and we couldn’t if we wanted to. We certainly cannot decide for them the extent to which our relations should be restored. Nevertheless, there are something like 600 UK companies operating in our market and they are not planning on going anywhere. There are very large companies, such as BP, which is one of the major shareholders of Rosneft, as is known. And there are many others operating in different industries. But I think, at this stage, the political leaders of both countries should not get in the way of those who are engaged in essential business.



Question:

Mr President, continuing with your various bilateral talks, we journalists were all expecting to see you hold trilateral talks with the French and German leaders here at the summit, but as I understand it, you all held separate meetings instead, at their initiative. Ukraine was the main subject of discussion, of course. What agreements did you reach? Seeing as you discussed Ukraine separately with each leader, what is the Normandy format’s future?



Vladimir Putin:

Yes, we were going to meet as a threesome at their initiative, and then they decided they wanted bilateral meetings instead. This was due to the fact that Federal Chancellor Merkel had domestic political matters to take care of at this moment. As you know, one of the German lander had elections and she was quite simply busy at that moment. I therefore met first with the French President and then met afterwards with the Federal Chancellor. Yes, we did indeed mostly discuss the Ukrainian crisis.

As for the Normandy format, for better or for worse it is the only group even trying to find solutions to the conflict now, and so of course Russia continues to support it.



Question:

Will you speak with [Ukrainian President Petro] Poroshenko?



Vladimir Putin:

Probably, what else can I do? I will have to speak with him.

I said to the Federal Chancellor and the French President that it is not a question of whether to meet or not, but a question of whether our meetings produce some positive steps towards a settlement. I do not think it makes sense to hold meetings just for the sake of it. I had the impression that no one wants to meet just for the sake of it, except perhaps Mr Poroshenko, perhaps. I do not know, as I have not spoken to him for a long time.



Question:

Mr President, I want to ask about Saudi Arabia and your talks with bin Salman [Deputy Crown Prince Mohammed bin Salman Al Saud].

I understand that you discussed Syria and some military matters. You also discussed oil, because some kind of agreement between Russia and Saudi Arabia was announced today. I say “some kind of” because there are no concrete parameters given and reports say only that the countries will work together in order to balance the oil market. I would like to hear some more concrete details on the oil agreement. Could you clarify? The Saudis say that there is no need for a freeze as yet, but you think there is a need.



Vladimir Putin:

When? Did they say this now?



Question:

Yes. The minister was at the briefing. We are saying, as it were, that freezing [oil production] is an ideal way to balance prices on the world oil market while the Saudis are saying that this should not be done yet. But when should this be done? Should it be done [at all]? What oil price do you expect to reach as a result of the agreement that the Energy Ministry signed with Saudi Arabia today?

And another thing. After the question about oil, could you also comment a little on Syria? Did you actually discuss military cooperation with Saudi Arabia and with Obama, and the fact that an agreement with the United States on Syria that, as you say, may be reached – how ambitious is it and will it, for example, lead to joint military operations in Syria?



Vladimir Putin:

Regarding our relations with Saudi Arabia, our relations are of a friendly nature. If anything, we agree on the need to work together in some way or other on the world oil market. On the whole – surely you know this – Saudi Arabia did not rule out the possibility of freezing production, and there have been long-running discussions on this issue.

What is the problem there? The problem is Iran’s increasing production. However, in my opinion, as I said earlier, under the sanctions, Iran’s production was at a minimum, and so I consider it fair if Iran reaches its pre-sanctions level. There is nothing wrong with this. Iran does not have excessive demands.

Nevertheless, unfortunately, we know about the peculiarities of relations between Iran and Saudi Arabia. We try not to interfere. However, my impression in the course of contacts with the Saudis is that they do not actually rule this out for themselves, either. As for the price, what should the price be? I will give you a very specific answer: The price should be fair.



Question:

It is fair now?



Vladimir Putin:

Not now. It could be a little higher. However, bearing in mind that, as you know, our budget was calculated based on $40 per barrel, this suits us. In principle, the present price suits us.



Question: (without microphone).



Vladimir Putin:

About Syria? Actually, I already talked about it. I believe it is premature now to talk about any parameters of our agreements. Nevertheless, I very much hope that if agreements are reached – and I have reason to believe that this could happen within the next few days – then we will be able to say that our collaboration with the US in fighting terrorist organisations, including in Syria, will significantly improve and intensify.



Question:

The G20 summit has shown that all countries have economic and political problems and Russia is no exception. However, it often happens that, indeed, the most challenging problems are solved at the personal level, when leaders have exhausted all possibilities for restoring dialogue and problems begin to be dealt with at the most basic level. Erdogan is a case in point. It was a similar situation, when the man went a little over the top and then he made it clear that he had gone overboard and backed down a little, and now relations with Turkey are on the mend.

The UK. Likewise, it seems that nothing has changed, but the leader has changed and now there is a chance to restore [relations].

However, I would like to move on to Obama – after all, he is a key partner. Was there something – what if Obama had said, “I went a bit too far there” maybe on the sectoral sanctions, maybe the individual sanctions. Maybe there was something that hurt you, something that seemed unfair to you? If he – not as the leader of a country but as a person – had said in a humane way, “Yes, I went a bit too far there.”



Vladimir Putin:

So impose sanctions, but in a humane way? (Laughter.) Humanely or not… As diplomats say, there is a substantive part of our relations.

If they take steps to worsen our relations then there is no getting away from that. And there are decisions, including those related to sanctions. However, if they want to restore relations, evidently these decisions should simply be reversed and that’s it. As for how this will be done, in what form, that is another matter.

The most important thing is to address the core of the problem and try not to deal with problems that arise in a way that is solely to one’s own advantage (at any rate, the way the present leadership understands this advantage), but to search for compromise that would reflect the interests of both partners. If we work with any country on this basis, including with the United States, well, we will always try to do our best, as much as possible, to reach a compromise not only for our own benefit but also for the benefit of our partners because it is not possible to collaborate in any other way. However, I would like our partners in the US also to treat us with the same standards and from the same positions. That’s all.



Question:

How do you assess China’s contribution to the development of the global economy and the G20 mechanism?



Vladimir Putin:

Well, here, I probably won’t say anything new. Everyone knows that these are objective data. China today is a leader in terms of economic growth rates and everybody closely watches everything that happens in China, in the Chinese economy. Because a leader is a leader, and I believe that any success, even in countries that have a difficult past history of relations with China, cannot but cause satisfaction, because this reflects on the global economy as a whole.

As far as we are concerned, we have all the more reason to be happy because as a country China is our biggest trade and economic partner. Yes, our trade has declined somewhat but we are unfazed by this because I believe something more important is happening.

What is this something? It is a change in our structure of trade. Its quality is improving and the number of machines and equipment that we supply to the Chinese market is increasing. We also have large-scale, promising projects in high-tech spheres. This includes not only nuclear energy, although it is very important, but also aircraft manufacturing, space and micro-electronics. We have a large number of joint areas of activity and this is also a big plus in our bilateral ties. The volume and diversification.

And of course, China has done a great deal to prepare for the G20 summit, and it has gone extremely well. They have put their heart into organising it, I would say, and it produced results. Because everything we wanted to agree on, despite some unresolved issues, we actually agreed on. All documents were signed, and they put their heart into it, beautifully as the Chinese can do.



Question:

Has the issue of creating de-facto closed associations, such as, for example, the Transatlantic Trade and Investment Partnership and Trans-Pacific Partnership been addressed? In your opinion, how effective are meetings, for example, in the G20 format, if a number of countries follow their own rules anyway? In these difficult economic conditions, to what extent do you believe Russia is ready to compete on the global market?



Vladimir Putin:

You know, of course, there are no decisions here that would be obligatory for the member countries. The G20 does not take legally binding decisions. Many such formats do not take such decisions – in fact none of them do. However, the value of such discussions and such documents lies elsewhere. Their value is that they set a trend.

For example, the Chinese presidency has chosen ensuring sustainable long-term growth through innovation as the key topic. To reiterate what we discussed there: information exchanges, sharing research data, protecting patents, the digital economy, and so on.

It should be clear to everyone that this form of activity should be given the green light. If somebody moves in a different direction, he acts contrary to the wish of the global community and violates, as it were, generally accepted norms, even if they are not obligatory. These trends are very important. So there is a certain value in this and it is quite significant.



Remark:

What about the ability to compete?



Vladimir Putin:

We are interested in this. In fact, Russia is interested in this – exchanges of technology, innovation and scientific knowledge. Even in the sphere of education. And we do have something to offer here.

You know, for example, that we are doing very good work with the Germans near Hamburg, I believe with fast neutrons. You see, it is an absolutely unique project involving unique technology, mostly our own technology, and we are promoting it, in this case on the European market for research purposes and possibly for subsequent use. Actually, we are interested both in offering something and receiving something that we need from our partners.



Question:

Mr President, going back to cooperation with China, the issue of the Hague Court [of Arbitration] with regard to the South China Sea was present at summit venues, on the sidelines and before it began. US President Barack Obama commented on these territorial disputes even before he arrived for the summit and so did China: Chinese President Xi Jinping commented on it. What is Russia’s position on the issue? I would like to hear your opinion. And of course, the Russian-Chinese drills, Naval Interaction, which will in fact take place in the South China Sea, are of special interest.



Vladimir Putin:

You know, I’ve developed a very good relationship based on trust with President Xi Jinping. I would say a friendly relationship. However, he has never – I would like to underscore this – he has never asked me to comment on this issue or intervene in any way. Nothing of the kind has ever passed his lips. Nevertheless, of course, we have our own opinion on this. What is it? First of all, we do not interfere. We believe that interference by any power outside the region will only hurt the resolution of these issues. I believe the involvement of any third-party powers from outside the region is detrimental and counterproductive. That’s my first point.

Second, as far as the Hague Arbitration Court and its ruling are concerned, we agree with and support China’s position to not recognise the court’s ruling. And I’ll tell you why. It is not a political but a purely legal position. It is that any arbitration proceedings should be initiated by parties to a dispute while a court of arbitration should hear the arguments and positions of the parties to the dispute. As is known, China did not go to the Hague Court of Arbitration and no one there listened to its position. So, how can these rulings possibly be deemed fair? We support China’s position on the issue.

As for the drills, they do not affect anybody’s interests but are beneficial for the security of both Russia and China.



Question:

Mr President, could you expand on the relationship of trust? Did Xi Jinping taste the ice cream? Did he like it?



Vladimir Putin:

I don’t know. He was very busy, but we gave him the ice cream. When I told him what I had brought, he asked, “Where’s the ice cream?” So we’ve already given it to him.



Question:

What kind of ice cream?



Vladimir Putin:

To be honest, I won’t lie to you, I don’t know, but it is tasty. The Chinese in Vladivostok said it was tasty. “We in China love it,” they said. My guys took it and said they had everything, they were ready to deliver it. I said, “Go ahead then, what are you waiting for? Before you eat it yourselves.”



Question:

A question unrelated to the summit but one that has been discussed the past few days. Following Islam Karimov’s death, there are different theories about what will happen in Uzbekistan. What is your prediction, how will the relationship between Moscow and Tashkent proceed in the near term? Do you have any concerns?



Vladimir Putin:

I hope that everything done by Mr Karimov to build bilateral relations between Russia and Uzbekistan will be preserved and added to. Islam Karimov did a great deal to establish Uzbekistan as an independent country, and I believe that what he did for his country is not fully appreciated yet. Different moments in Uzbekistan’s modern history can be interpreted in different ways but he managed to maintain stability in the country, he maintained steady progress.

There will be new people who will decide what is to be done next. I really hope they will be able to maintain that stability I mentioned. For a nation like Uzbekistan it is crucial, it is necessary simply for self-preservation and for steady development in the future. And we, for our part, will respond in kind. We shall do everything to keep things moving forward.

I should tell you, in view of our very good personal relationship throughout all the years we knew each other and worked together, especially in the past few years, that Islam Karimov (I can probably reveal something of his human side, so to speak) was very kind to me, we had a good relationship. He was older than me, as you know, and he always addressed me informally by my first name when we were alone.

I believe this is a huge loss for Uzbekistan, and in general it’s terrible when a person passes. And I think I will definitely go there tomorrow to honour his memory.

Thank you very much.





The source of information - http://en.kremlin.ru/events/president/news/52834
 
Old September 10th, 2016 #32
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Two meetings of President Putin:





Meeting with Prime Minister of Uzbekistan Shavkat Mirziyoyev



During a visit to Samarkand, Vladimir Putin met with Prime Minister of Uzbekistan Shavkat Mirziyoyev.



September 6, 2016 - 11:00 - Samarkand





Prime Minister of Uzbekistan Shavkat Mirziyoyev:

Mr President, allow me to again express gratitude to you from myself and on behalf of the people of Uzbekistan for helping us in this difficult time, including for dispatching a team of doctors led by two academicians to us, for your message of condolences, and to Prime Minister [Dmitry Medvedev] for attending the mourning ceremonies. All of this is very important for us. Your visit today conveys a great deal to us, and we are grateful to you for this. You are standing by us as a real friend. This is a difficult time for the republic. We are mourning the loss of our first President, Islam Karimov. We are grateful to you for your help.

Yesterday we watched the interview you gave in China and noted the kind words you said about our esteemed President, Islam Karimov. As you rightly said, a reliable structure of relations has developed between Uzbekistan and Russia over the past years. We can say now that Uzbekistan has always considered and will always consider its relationship with Russia as a strategic partnership and Russia as an allied country.

Islam Karimov used to say – and we will carry this on – that we have strategic relations with Russia, that we are strategic partners in our foreign policies. Mr President, we will continue working in the same manner, so as to keep secure and strengthen the bridge, which you and Islam Karimov worked for years to build.

I believe that your visit to Uzbekistan today is evidence of your personal attitude to our esteemed President, Islam Karimov, and also to the people of Uzbekistan. As I told you today, people in Tashkent, Samarkand and everywhere else in the country are saying today that your decision to come here speaks volumes. I want to express my gratitude to you once again.

As I said, we will continue to build on the considerable potential, which you and Islam Karimov have created.

Thank you very much.



President of Russia Vladimir Putin:

Mr Mirziyoyev, thank you for this opportunity to visit Uzbekistan today, to pay respects to the grave of Islam Karimov, the first President of Uzbekistan, who did so much for his country and for his people.

I am not talking about stability alone, although stability is certainly the basis for prosperity of any country, any nation, and he did succeed in achieving it at a most difficult time. But, for me, personally – I already said this yesterday, while I was in China: Islam Karimov and I have established a very good personal relationship, a trusting relationship, especially in recent years – so I deeply grieve this great loss.

Indeed, Islam Karimov has laid a very solid foundation for relations between our countries, and built a strategic partnership.

I told you earlier what he said about the future development of our relations, and how he said it. He clearly implied he saw developing relations with Russia as the best course of action for Uzbekistan and its people to achieve their full potential, an attitude we have always appreciated.

You have just recalled that during my last visit to Tashkent, he invited me to see the monument to Alexander Pushkin, to lay flowers. He spoke in detail about when and how he made the decision to move that monument, and why it should be there – so that people could come and sense the bond between our cultures, our peoples, our common history. We cherish it, and we certainly hope that all that was started by President Islam Karimov will be continued.

For our part, we will make every effort to continue along the path of our mutual development, to support the people of Uzbekistan, the Uzbek leadership; you can count on us in full measure as the most reliable friends.



Shavkat Mirziyoyev:

Thank you very much.





The source of information - http://en.kremlin.ru/events/president/news/52839






Meeting with King Hamad bin Isa Al Khalifa of Bahrain



Vladimir Putin met with King Hamad bin Isa Al Khalifa of Bahrain. A number of documents were signed at the conclusion of the talks.



September 6, 2016 - 20:15 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Your Majesty, welcome to Russia.

I am pleased to see you.

I hope that your visit this time will be as productive as our previous meeting. We discussed a whole host of opportunities for expanding our collaboration.

I know that this time you wanted to see our defence industry capabilities. I hope that you have been able to see what we can offer our friends and partners. Your Majesty, I would also like to know your opinion about what you saw today.

And naturally, it is very important today to talk about your view of what is going on in the region. I had an opportunity in China to discuss these issues with some of our colleagues from the region.

In this connection, Your Majesty’s visit is very timely and I am happy to see you.

Welcome to Russia!



King Hamad bin Isa Al Khalifaof Bahrain (retranslated):

Mr President, thank you for the invitation and for your warm welcome. I would like to convey to you the best wishes of the people of Bahrain.

Today, we were pleased to visit an exhibition featuring the latest models of advanced weapon systems. The Deputy Prime Minister [Dmitry Rogozin] and the Defence Minister [Sergei Shoigu] gave us a very warm welcome.

Indeed, we would like to get a closer look at your modern products, your arms manufacturing complex. And naturally, taking this into account, we build our relations in accordance with our needs. And, glory to God, everything that we agreed on earlier is being put into practice. However, of course, we, Russia and Bahrain, would like to set even more objectives for ourselves.

Mr President, you and your leadership, your Government are held in high regard in the region and throughout the world. And we thank you.





The source of information - http://en.kremlin.ru/events/president/news/52842
 
Old September 10th, 2016 #33
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Meeting with Government members



Vladimir Putin held a meeting with Government members to discuss developing Russia’s Arctic region. The meeting also examined the situation with floods in the Russian Far East, and the Emergency Situations Minister briefed the President on the repair work underway in the region and assistance for those affected by the floods.



September 7, 2016 - 14:15 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Good afternoon colleagues.

We are going to discuss the Arctic today, but I would like to start with…

I discussed with the Emergency Situations Minister the need to help people in Vladivostok and Primorye Territory. We met in Vladivostok and I gave some specific instructions.

Mr Puchkov, what has been done so far and what is the situation now?



Emergency Situations Minister Vladimir Puchkov:

Mr President, colleagues,

An emergency situation is still in place in Primorye Territory, as is the federal-level response. The authorities and our forces are working to minimise the flood damage.

We currently have more than 19,000 people and 1,150 pieces of equipment on location. In accordance with your instructions, we also have 1,800 people in reserve.

More than 40 settlements have been affected by the flooding, 4,500 houses with a population of 14,000 people. Forty-three settlements have been cut off from the outside world and communication links with 18 settlements are working only intermittently. The flooding has affected 10,500 hectares of agricultural land and damaged 70 bridges and more than 200 kilometres of roads.

Rescue work continues and initial repair work is underway. More than 200 people are currently living in temporary shelters. We have already closed three temporary shelters and sent people back to their homes.

The temporary shelters offer meals round the clock, medical services, and communication links. They have social workers and are able to sort out all current issues, including help in obtaining necessary documents.

We have established an air link using Mi-8 and Mi-26 helicopters, and more than 150 people have already been transported to Vladivostok and other regions. We have organised 7 temporary boat crossings and crossings using floating transporters. In the settlements where the water levels are subsiding now, 21 appraisal commissions are at work and so is a comprehensive brigade, rescue workers, who have already cleared sediment, mud and rubbish from more than 300 properties and organised targeted help for families.

Of course, our priority goes to the elderly and large families. We are vaccinating the local population. More than 1,800 people have already been vaccinated. Medical teams are working in all the affected settlements and more than 1,700 people have already received health check-ups.

Following a Government decision on Monday, 718.5 million rubles were allocated from the Reserve Fund. Mr President, this money is being used to provide material assistance to the flood victims and compensate for daily essentials lost in the flooding. The Primorye Territory budget is making the payments.

Our priority is to provide targeted help to the people and ensure rapid repair of important social infrastructure facilities such as schools and kindergartens wherever possible. Where this is not possible, the children have been sent to other educational facilities and their transport and studies have been organised.

The situation is still difficult in the region. Water levels continue to rise in a number of rivers and this is increasing the total flooded area.



Vladimir Putin:

Are the rivers still rising?



Vladimir Puchkov:

Yes, they are.

The appraisal commissions are at work. Mr President, we are working closely with all federal organisations. The Primorye Territory emergency situations commission and the local authorities are working hard, and the other Far East and Siberian regions are helping too.

Once the water levels have gone down, we will complete the damage assessment work and make additional decisions on rebuilding schools, kindergartens, homes, district hospitals and other socially important facilities.

Together with the Agriculture Ministry and the Transport Ministry, we considered the repair and restoration of roads and bridges and have earmarked 1.7 billion rubles for this work. We have already established integrated teams made up of specialists from different federal agencies. Specialists from the Communications, Construction, Agriculture and Transport ministries are at work on the ground drafting the pre-design concept.

We are working on the temporary restoration of all road and communication links and plan to have the design preparation and main work complete by September 2017, considering that very thorough work is required here to prepare the plans and ensure quality work.

Together with the Primorye Territory authorities, we have decided that the reconstruction work, especially in remoter rural areas, will result in infrastructure of a better quality than before the floods. The work continues and is being monitored by the National Crisis Situation Management Centre.

That ends my report.



Vladimir Putin:

Mr Puchkov, it is difficult right now to assess the damage, especially to people’s property and homes?



Vladimir Puchkov:

We have a general assessment based on preliminary information, but the problem is that water levels in the Ussuri River and several of its tributaries have continued to rise over the past 24 hours. In the areas where the water levels have gone down, 21 appraisal commissions are already at work and we are making progress step by step. So far, 304 homes are ready for living in again and we have cleaned out yards and brought in additional heat cannons from Sakahlin, Trans-Baikal Territory and Khabarovsk Territory. However, the final scale and specific decisions will be ready only once this latest wave of the elements subsides and the water levels go down.



Vladimir Putin:

Good. You realise how important this is. Do not delay. Do everything as quickly as you can as soon as it is possible.



Vladimir Puchkov:

Yes, Mr President.



(The next item on the agenda was the implementation of Government instructions on preventing the spread of contagious animal diseases, including African swine fever. Deputy Prime Minister Arkady Dvorkovich made a report and Minister of Natural Resources and the Environment Sergei Donskoy and Agriculture Minister Alexander Tkachev took part in the discussion).



Natural Resources and Environment Minister Sergei Donskoy:

Mr President, colleagues,

The Russian Federation has laid claim to extending its Arctic continental shelf by 1.3 million square kilometres through extending the Russian continental shelf’s external border beyond the outer limit of the 200-mile exclusive economic zone.

In accordance with Article 76 of the United Nations Convention on the Law of the Sea, we sent our application to the UN Commission on the Limits of the Continental Shelf in August 2015. The Commission’s recommendations form the basis for delimiting neighbouring countries’ marine borders. It usually takes 3–5 years to examine an application. The Russian delegation is working to have our application examined by mid-summer next year.

In August this year, just recently, in other words, Russia presented its application to the UN sub-commission. The initial outcome of this presentation confirmed that the specialists would pay key attention to the justification for the way we have mapped the seabed relief. In this respect and in order to settle all possible questions, it is essential that the Defence Ministry complete this year its work on interpreting the bathymetric data obtained during the high latitude expeditions. We have held all the necessary consultations with the Defence Ministry now and they are to start on this.

The other Arctic countries are also very active in this area. In particular, Denmark has also made an application to the Commission and presented additional information just recently. The material they have presented covers 550,000 square kilometres of territory to which Russia has laid claim, including at the North Pole.

In this respect, to speed up the consideration of Russia’s application, it would be good to organise through Russian Foreign Ministry channels bilateral consultations with Denmark this autumn on signing an agreement on the preliminary delimitation of our adjacent continental shelf territories in the Arctic Ocean.



Vladimir Putin:

With Denmark?



Sergei Donskoy:

Yes, with Denmark, so as to then be able to organise the subsequent events, including proper examination of the geological applications, to avoid any further disputes. It would be good to do this in autumn this year.

Now I would like to say a few words about developing the Arctic region. We at the Natural Resources and Environment Ministry believe that the Arctic’s unique minerals and raw materials will be the driver for its development. Geologists have helped to develop a vast minerals and raw materials base here, including strategic minerals. A total 340 oil and gas fields have been discovered in the Arctic region, including 33 on the Arctic continental shelf. We have 407 hydrocarbon licences currently issued (these include both onshore and offshore production licences).



Vladimir Putin:

Are these fields accessible?



Sergey Donskoy:

As far as the Arctic shelf is concerned, the offshore fields are accessible. When we issued the licences, we also examined the territories’ accessibility. As of August 1 this year, we had 248 subsoil development licences issued in the Arctic region for geological exploration, development and production of solid minerals, and oil and gas prospecting is underway at 75 licenced offshore sites covering a total area of 1.3 million square kilometres in the Arctic region.

Given the substantial volume of work that state companies are currently carrying out or will carry out (we know that state companies are the main players operating on the continental shelf), and the macroeconomic instability we face right now, the Government decided to temporarily suspend new applications for offshore field development. This will allow companies to concentrate on carrying out their current licence obligations and to better distribute their financial resources while carrying out geological exploration.

As another step to clearly define subsoil resource users’ obligations for the geological exploration and development of the sites already under licence, Rosnedra [Russian Subsoil Resources Agency] is updating licences taking into account infrastructure projects implemented in the region. It was for this reason that we proposed a temporary freeze on issuing new licences, and the Government approved this decision.

The Arctic has 20 trillion cubic metres of proven natural gas reserves, mostly in the Yamal Peninsula area. The unique concentration of these resources requires us to take special measures to encourage timely work to start their development. If we fail to do this, Russia risks losing the chance to make full use of this potential for its own interests.

Increasing competition between different energy resources on the global energy markets makes it particularly important now to pursue maximum diversification of ways of using Russian natural gas. To achieve this we need to develop a package of measures, including licensing measures, to encourage a higher degree of natural gas processing and to develop LNG production and processing facilities in the region. We also need a mechanism for building transport and energy sector infrastructure facilities.

Mr President, I ask you to instruct the Government to work through this issue.

Another matter I would like to raise is an environmental one. In the past, natural resource development in the Arctic region was conducted without proper attention to the region’s fragile environment. Mr President, you saw the consequences when you visited Franz Josef Land in 2011.

In 2012, on your instructions, a general clean-up of the Arctic got underway. Franz Josef Land was chosen for the pilot project to eliminate the consequences of environmental damage in the Arctic. Environmental studies showed that around 90,000 tonnes of waste had accumulated there.

As a result of the work to clean up the accumulated environmental damage on the archipelago, over 2012–2015, 39,000 tonnes of waste was prepared for waste treatment and removed from the islands. This is around 44 percent of the total volume of waste. Alexandra Island has been totally cleared of waste. The project included the technical re-cultivation of 349 hectares of land. The Defence Ministry is involved in this work as well. They have organised clean-up work on the Novosibirsk Islands, Vrangel Island, and Novaya Zemlya. A total of more than 9,000 tonnes of scrap metal has been collected and around 150 hectares of damaged land have been cleaned up.

Mr President, given that this work began on your instructions, we would like to invite you to visit Alexandra Island on Franz Josef Land to see for yourself how the Arctic environment has changed after the clean up.



Vladimir Putin:

It is getting cold there now.



Sergei Donskoy:

You could visit next year, which will be the Year of the Environment next year — a good moment to inspect the results of the work done.



Vladimir Putin:

It is not so bad right now, but in a couple of months, the temperatures will be very different.



Sergei Donskoy:

Yes, there is a bit of the season left, until September 20, but after that, it will be difficult.



Vladimir Putin:

There will not be time this year. Maybe next year, and this also will give more time to produce results.



Sergei Donskoy:

Yes, Mr President.



Vladimir Putin:

Thank you.

Mr Ulyukayev, you have the floor.



Economic Development Minister Alexei Ulyukayev:

Mr President, colleagues,

The state commission examined the Arctic region’s development and came to the conclusion that the two main foundations for development are making use of the region’s unique minerals and raw materials base (primarily gas, oil, coal, non-ferrous metals, and rare earth elements), and developing on this basis modern industrial facilities, making use of the Northern Sea Route’s transit potential, and coupling these two aspects.

Economic activity in the region involves very specific conditions, of course. This includes economic activity focused around separate isolated sites, big distances and a localised infrastructure. We need to take a project-based approach here. Within our sub-commission of the commission on socioeconomic development examined the totality of projects the different agents have initiated and taken decisions on.

Work is already underway on some of them, and some of them, around 150, are in the development phase. Investment for these projects through 2030 will come to 5 trillion rubles. Obviously, we need to set priorities here. In other words, we will identify the projects that will get priority attention taking into account the current risks, results produced, and the possibilities for linking the projects.

In order to link projects and make use of the resulting synergy, we have approved a concept for support development zones in the Arctic region. These are the Kola, Chukotka, North Yakutia, Yamal, Taimyr and Nenets zones, where project development can use a common infrastructure base, which considerably reduces the initial financial costs.

Here, we could also develop public-private partnerships where the state would remove infrastructure restrictions and offer preferential treatment within the framework of the formats we have at our disposal, and businesses would take on investment commitments. This would help to optimise budget spending, involve the existing infrastructure in development, and make it possible to concentrate on several projects at once. We also propose using dual-purpose infrastructure facilities – transport, communications and energy facilities – in the interests of both defence and security development and economic development. We are working with the Defence Ministry on this.

Putting limited resources to maximum effective use requires the use of the different stimulating measures we have at our disposal: free ports, priority development areas, industrial parks and so on. In this respect, Mr President, we ask you to decide on the possibility, first, of extending the priority development area regime to the Arctic region in 2017. The law allows us to do this starting in 2020, but we would like to do this sooner.



Vladimir Putin:

You mean the same thing we did in the Far East?



Alexei Ulyukayev:

Yes, what we did in the Far East. We would like to extend it next year to the Arctic region.



Vladimir Putin:

We will end up spreading this preferential regime to the entire country. This is all well and good, but then we will need to take some further measures in the Far East, because we must make an absolute priority of the Far East’s development, making it an attractive region for economic actors.



Alexei Ulyukayev:

Mr President, this could be seen as the main development path. We are trying out the most effective ways of developing economic activity, territories, production potential and human resources in the Far East. It is a pilot project. Then we take what works best and spread it to other regions and make progress there too.

Second is the free port regime, which is working in Vladivostok and has been extended to another five Far East ports. We would like to extend this regime to the Northern Sea Route’s support ports – Pevek, Dikson and Tiksi.



Vladimir Putin:

Not all of the Far East ports have been included in the free port regime, incidentally. Businesspeople were complaining that some port in Kamchatka, I think, had not been included.



Reply:

On Sakhalin.



Vladimir Putin:

Yes, on Sakhalin. This port should be included…



Presidential Aide Andrei Belousov:

This is a non-diversified port — it is only used to ship coal.



Vladimir Putin:

What difference does this make?



Andrei Belousov:

If possible, we will consider this matter.



Vladimir Putin:

Yes, do please. If the other ports all enjoy from certain preferences, there will be no more coal shipped there because everyone will go to the other ports. If neighbouring ports offer preferences and they do not, the port will start to die.

Examine the matter and brief me later on your conclusions.

Sorry, please continue.



Alexei Ulyukayev:

We see this as links in a single chain, because transit via the Northern Sea Route makes use of the possibilities offered by the Far East ports and the Arctic Ocean ports. Freight volumes are increasing substantially in these areas and so is the export potential and transit opportunities for producers in the Far East. Of course, it is essential to use this potential for shipping the necessary winter supplies to the far northern regions too.

During the Soviet times, a large part of these supplies went via the Northern Sea Route, while today, most of the them come via the southern route, in other words, first by rail and then by river. This takes two seasons and is very costly. Of course, if we can make full use of the ports’ potential, it will substantially cut budget costs and will reduce the time it takes to ship supplies.



Vladimir Putin:

Thank you.





The source of information - http://en.kremlin.ru/events/president/news/52843
 
Old September 10th, 2016 #34
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Meeting to discus use of defence industry potential in high-tech civilian goods production



Vladimir Putin held a meeting on the use of the defence industry’s potential in the production of high-tech civilian goods that find demand on domestic and export markets. The meeting took place at the premises of the Research and Production Enterprise SPLAV.



September 8, 2016 - 15:50 - Tula



Before the meeting, the President visited an exhibition of civilian goods developed by Russian defence industry enterprises.





President of Russia Vladimir Putin:

Good afternoon colleagues.

We are here today to discuss how to use the defence industry’s potential to boost production of high-tech civilian and dual-purpose goods. We have discussed this subject many times and know how important this is. We know that our defence industry’s future depends directly on resolving this task.

As you all know, we are carrying out an extensive programme that amounts to entirely re-equipping our armed forces. By the end of this year, the state defence procurement programme will see our armed forces’ share of modern arms exceed 50 percent, and this figure will reach 80 percent by 2020.

To attain these results, defence industry enterprises underwent radical modernisation. As you know, we invested considerable resources in this process. The sector has received big orders from the state, primarily from the Defence Ministry and other specialised agencies.

At the same time, by 2020, our plans for extensive modernisation of the armed forces will be complete and the peak for state defence procurement orders will have passed. Of course, we will need to continue upgrading the armed forces, and I will say a few words about this, but the peak will have passed.

There will not be such a high volume of orders for the defence industry in the future.

The task then will be to ensure planned and regular equipment supplies for the armed forces, adding to their arsenals as necessary as existing equipment comes to the end of its service life, and, of course, work on new generation arms. We are already working on this now, but this will be a priority in the future as well. This is very important.

As we work on these tasks, we must make the fullest use of the defence industry’s potential that we have created and are enhancing today. We must ensure that existing capacity is put to full use, and this requires focusing on diversifying production in the sector. This is something I have discussed many times with colleagues working directly in this sector. Today, we need to start thinking about increasing the production of civilian and dual-purpose goods at defence industry enterprises.

This is important for the financial stability of the enterprises themselves, and for their workforces, which we must preserve, of course. This is also important to ensure that the money we invested in modernising the sector works for the entire Russian economy’s growth and contributes to developing import substitution and increasing our high-tech exports.

In this respect, I would particularly like to underscore that production of civilian goods should concentrate on mass consumption goods. At the same time, we need to take our advanced science-intensive sectors’ demands as a reference. I say this because we are investing today in expensive and highly complex equipment and we cannot then use it to simply turn out frying pans. We need to focus on demand in medicine, the energy sector, aircraft manufacturing and shipbuilding, space, and information and communications technologies.

Our defence enterprises most certainly have the necessary potential to resolve these tasks. They have a solid production, technological and human resources base and their projects have already laid good foundations to build on. Furthermore, this sort of work is already underway in many enterprises, including in cooperation with top Russian universities, research organisations, and civilian organisations.

We have just heard about how Research and Production Enterprise SPLAV, our meeting venue today, is working on several projects together with Moscow State University and has carried out projects to produce modern medical equipment.

I would like to draw the attention of [Healthcare Minister] Ms Skvortsova: our colleagues have not exactly complained, but said that they find it hard to sell their products through tenders because the conditions are such that they clearly have no chance of fitting their products into the lots up for bidding. If they offer something they do not produce, they will never sell anything. I therefore draw your attention to this problem. This concerns medicines and medical equipment. Please act on this because these are issues that must be addressed.

They said they have discussed this with you already. The issue is one of coordinating between potential customers and developers, including such organisations as the Academy of Sciences, which draw up the relevant standards, and the producers. They need to know in advance, to what standards the medical sector will work, to use this as a reference in their production. There should be some kind of unified organisation here, and not just within the defence industry. We need to look at how to organise this work jointly with colleagues from the Healthcare Ministry and other agencies that are potential customers.

We already have experience here and we need now to examine and spread it.

I would like to discuss today the main areas of defence industry diversification. We have people here from state corporations and the ministries and agencies, the main producers and clients, and I think this is the best list of participants we could have for a meeting like this.

Finally, the Government Commission for Import Substitution should oversee the organisation and coordination of the sale of these goods, as we have already discussed, but a joint organisation of some kind should be established to support this work. I ask you to make a detailed study of this matter at one of the commission’s upcoming meetings.

Let us now turn to the issues I have just outlined. I give the floor to Mr Manturov, the Minister of Industry and Trade.

Mr Manturov, please.



Minister of Industry and Trade Denis Manturov:

Mr President, colleagues,

Carrying out the state arms procurement programme is a big priority today, of course, but all of the defence industry companies’ product portfolios include civilian and dual-purpose goods as well. In 2015 these goods accounted for 16 percent of total production, and in 2011, they accounted for 33 percent of total goods. The drop in the share of civilian goods is due to the much higher volume of state defence procurement orders. This notwithstanding, we have already started preparing our defence industry enterprises for 2020, when, as you said, there will be adjustments to the volume of state defence procurement orders.

With the mutually complementary development of military and civilian production by defence industry companies over the next five years, we expect to see a steady increase in the share of civilian goods at a rate of at least five percent a year, which means that civilian goods should account for half of all production by 2020.

To achieve this balance, the emphasis in civilian diversification is on high-tech areas in which, firstly, we were considerably dependent on imports, secondly, there are good prospects for future demand, and thirdly, the defence industry companies have already developed the necessary skills.

Based on these criteria, radio-electronics is the sector with the highest growth potential. Demand in this sector should increase 3.7-fold by 2020, primarily through the mass development and consolidation of orders from state organisations and private companies for the purchase of Russian-made electronics.

In the aircraft-manufacturing sector, implementation of current support measures should double the output of civilian aircraft by 2020. I would like to note that defence industry companies are taking part in developing the civil aviation infrastructure. In particular, Almaz-Antey is currently carrying out a project to develop and supply air traffic control systems. Our equipment is already being used at a number of airports, including abroad, in Mongolia, for example. We are currently in talks on supplying our systems to Iran and several other countries.

Two other promising civilian areas for defence industry enterprises to develop are technological equipment and specialised transport. The Kovrov Electromechanical Plant in Vladimir, for example, produces high-precision machine tools and is currently developing facilities for producing a multipurpose excavator and loader for use in the housing and utilities sector, though the plant’s main product range covers drive gear for armoured vehicles.

As far as equipment for the fuel and energy sector goes, projects are underway to equip gas transport systems and energy installations with aircraft engines. We have close cooperation with the Energy Ministry in this area.

As you may have noted, there is a great potential in medical equipment. This covers a broad range of goods, including equipment for clinical and diagnostic examinations, rehabilitation equipment, and expendable materials. These are important areas.

At the exhibition today, we saw a good example of how defence companies are contributing to import substitution at the POZIS stand (POZIS is a company that manufactures munitions and it holds 70 percent of the market for refrigerators for medical services and the pharmaceuticals sector).

Defence industry companies are currently working on 13 sector-based import replacement plans out of a total of 21 government-approved plans. In this, they are benefiting from the Industrial Development Fund, which has already allocated 1.5 billion rubles in loans to defence sector companies. This instrument is used, for example, in projects to develop electric drive gear for railway locomotives, a rotor control system, and an innovative cistern-container.

Given the high cost of loans and the great demand for access to the Fund’s resources, including from defence industry companies, we hope very much that our proposal to top up the Fund’s capital in 2017 by the same amount as in 2015 and 2016 will be supported.

At the same time, we must raise the defence sector companies’ own investment potential. In this respect, we are currently working with the Finance Ministry on a proposal we will submit to the Government to declare a three-year moratorium on defence companies paying dividends so as to channel the resources thus released into modernising facilities and developing civilian production. This will have little impact on the budget but it will be an important development instrument for the companies and will motivate them to make themselves more efficient. I hope that our colleagues will support us on this.

To create new opportunities for selling civilian goods, we have developed a separate mechanism for stimulating demand for new models by offering discounts to buyers. In other words, when the first pilot lot of goods comes off the line, companies will be compensated for up to 50 percent of the new goods’ cost. The Government has allocated 1 billion rubles this year for this purpose. This money will be spent on testing this new instrument first of all at companies producing machine tools, and for heavy oil and gas and energy sector machine-building.

I would like to say a few words about medical equipment purchases, which you mentioned. These purchases are mostly made at the regional and municipal level, as the regions account for the bulk of medical equipment purchases.

The Healthcare Ministry, together with Rostec, is developing a unified state information system in the healthcare sector. We and our Healthcare Ministry colleagues think it important that the design specifications include the organisation of a system for ongoing monitoring and data collection on medical facilities’ demand for innovative medical goods over a 3–5-year period (this is essentially what you said), so that companies can take these demand forecasts as a reference. This will be a unified system in which everything is clear and transparent and you can see who plans to buy what and in what quantity.

We think that this approach should be applied by other agencies with which the defence industry companies have substantial civilian production projects. This would give us an objective picture of demand and enable the companies to keep their facilities busy with civilian production. The regions should draw up regional programmes for increasing their purchases of Russian-made goods for state and municipal needs.

Thank you for your attention.



Vladimir Putin:

On this note, let us ask Mr Dyumin to tell us how things look from Tula Region’s perspective.

Mr Dyumin.



Acting Governor of Tula Region Alexei Dyumin:

Mr President, colleagues,

Everybody knows that the defence sector is the mainstay of Tula Region’s economy. The region’s defence sector companies account for around 40 percent of all Russian arms exports, and in 2015, our arms production increased by around 18 percent.

This company we are visiting today is not the region’s only example of an enterprise successfully producing high-tech civilian and dual-purpose goods. Our region is probably best placed to realise the full extent of the tasks facing the country’s defence industry today, but most importantly, we have specific proposals for the effective implementation of these objectives. Some of these proposals are reflected in Tula Region’s development programme through 2021, and they tie in well with federal interests.

There is, for example, a serious shortage of special-purpose Russian-made machine tools and new rotor production lines for munitions production. To resolve this problem, we are ready to set up at the Tula Research and Technology Institute a technology auditing centre to develop equipment and help to arrange production for companies producing munitions.

The issue of large-scale production of materials for individual armoured protections systems, light armoured military equipment, composites used in aircraft manufacturing, and fibre-optic cables for special communications is also urgent today. Here, we plan to make use of the Alexinsky Chemicals Plant’s possibilities and organise the production of new generation aramid materials for use in both the defence and civilian sectors.

Finally, there is the matter of universal machine tools for producing civilian and dual-purpose goods. Successful production of these machine tools is underway at Tulamashzavod, but this production would be far more efficient if we had specialised production facilities in Russia making the specific groups of component parts needed. In this respect, we are ready to launch a facility here in the region to produce ball screw pairs and linear guides (which we mostly import today). This would cover most of Russia’s demand in the production and maintenance of our machine tools. We will also launch a plant for high precision casting of steel and pig iron, and most important of all, we have a design institute for developing universal software. We are not in the best situation at this point in terms of software.

Let me note that these are perfectly realistic proposals based on practical experience and our region’s objective possibilities, including our human resource potential: we have more than 30,000 people working in the region’s defence industry today, and this is not the limit.

Mr President, you saw today the presentation by the Rostec Higher Technical School on the creation of a children’s technology park Kvantorium, which will open soon in our region. Furthermore, together with the Defence Ministry, we plan to establish training and production military companies based at the region’s three main defence enterprises – the Shipunov Machine Tool Design Bureau, the Research and Production Enterprise SPLAV, and the Research and Production Enterprise Strela. We are reopening the military department at Tula University. I would like to take this opportunity to thank the Defence Ministry in the person of Sergei Shoigu for supporting our initiative and the work we are undertaking in this area together.

Before the meeting, I discussed with Mr Rogozin and Mr Shoigu an interesting idea to establish research military companies at the Moscow Suvorov Academy and the Tula Suvorov Academy. In other words, gifted children at the Suvorov academies would receive intensive training from a young age in maths and physics. In this way, their training would prepare them not only for becoming unit and group commanders, but also for work in the defence industry as specialist officers. Our weapons systems are developing and becoming ever more sophisticated, and we will need such specialist officers to operate these increasingly complex systems.



Defence Minister Sergei Shoigu:

We support this idea. It is a good idea to provide professional training from a young age so that the young people can later go on to university, and not only the Defence Ministry’s universities, but engineering schools, where they will learn to develop, maintain, and use high-precision, complex weapons systems.



Deputy Prime Minister Dmitry Rogozin:

Roscosmos and Rosatom are ready to assign their representatives to the Moscow and Tula Suvorov academies’ boards of trustees and exercise oversight of the main chairs and classes in physics, maths, biology, astronomy and so on. We will identify children with potential in these areas and will put in place these scientific companies. It is an excellent idea.



Vladimir Putin:

A very good idea.



Alexei Dyumin:

In other words, we have this result-oriented direction for work: the science and production companies at our big defence companies, the military department at Tula University, and the plans for the Suvorov academies. Besides, there is also what you were told of today, the Higher Technical School, which will also train engineers and workmen, not only for civilian production sectors, but for the defence industry as well.

Tula Region’s technology and infrastructure potential is not in need of promotion. The defence industry is a big part of the region’s history and is just as important here today, and I am confident that it will be important in the future too. The region has everything needed to carry out these federal projects to a high standard.

I ask you to consider and support our proposals, Mr President. Thank you for your attention.



Vladimir Putin:

The scientific companies are a very good idea. It will be important not only to identify the gifted children, but also to work with them. And if, as Mr Rogozin said, we organise direct contacts with universities and production facilities, this would be perfect. It is a very good idea, I agree.

Thank you.

We have our colleagues here from various government agencies that could place orders for equipment manufactured in the defence industry. One of them is the Ministry of Health. Ms Skvortsova, please.



Minister of Healthcare Veronika Skvortsova:

Mr President, colleagues,

The key to understanding and forecasting demand for medical products are the equipment standards at medical organisations used in medical procedures that are mandatory across our country, as well as clinical recommendations for required implantation products.

At present, the list of medical products registered in the country contains 36,000 items. They are arranged by 21,000 types. However, only 300 of them are classified as heavy medical equipment, with a little over 800 listed as medical implantation products. The rest are consumables, tools and so on.

As of the end of 2015, only 30 percent of products were manufactured in this country. The financial equivalent is approximately 18.5 percent. Defence industry enterprises accounted for 6 percent of the Russian segment of the market, which is to say, about 1.3 percent of the total medical products market. The overall market value as of the end of 2015 was 212 billion roubles, of which 70 percent was subject to state municipal procurement.


(Next Veronika Skvortsova spoke about mechanisms to finance medical equipment procurement in the regions and of making lists of priority high-tech medical products that should be manufactured in Russia.)


I would like to point out, Mr President, that while last year 18 percent of the equipment in operation was Russian-made and even less in previous years, this year a significant increase was recorded – almost double that at 35 percent. The Ministry of Healthcare has issued clear-cut guidelines for all newly opened and upgraded facilities to have no less than 60 percent of domestically manufactured equipment. A case in point are perinatal centres where the Urals Optical Mechanical Plant supplied all ORs, all medical ventilators, equipment for children and so on.

The average depreciation of medical equipment is 65 percent. We already have an initial estimate of our need for equipment from the priority list for the next three years: 78 types. I would like to note that for five items of heavy technical equipment alone – CT and MRI scanners, angiography systems, x-ray and ultrasound machines – in the next three years we need to replace about 11,500 units. Having addressed the issue with the Ministry of Industry, we can say that domestic industry has sufficient reserves to make these replacements solely with domestically manufactured products.

To accomplish the tasks that you laid out in your opening remarks, Mr President, we need, of course, to transition to a centralised procurement system for medical products in the medium and the long term, three to five years, based on planned forecasting and monitoring. We are ready for this. We have already formulated an initial order.



Vladimir Putin:

This is precisely what manufacturers are asking.



Veronika Skvortsova:

Yes, this is what they want and we believe that this is absolutely right.

In this case, by understanding the capacity of our defence industry enterprises, we can significantly increase production. In our estimate, over the next three years, by 2020, defence industry enterprises could double their share of the Russian segment of the market to 15 percent, which is 6 percent of the total medical products markets. This is a conservative estimate.

Lastly, I would like to say that of course we need to make government spending more efficient. Just as we are finalising an information and analysis system for the procurement of medications, we support the proposal of the Ministry of Industry and Trade and believe that the next step should be to put in place a similar system for medical products. This will allow us to switch to reference pricing, save significant resources and expand the reach of our medical organisations. Thank you very much.



Vladimir Putin:

It is important (more of our colleagues will speak now) that we do not forget anything.

(Addressing Presidential Aide Andrei Belousov) Mr Belousov, we need to draft an instruction so that the Government can adopt a corresponding decision and so that what the Minister just said is recorded in corresponding documents to be followed in the future. Manufacturers should know the market, its capacity, and they should know the rules under which they will work on this market. This needs to be recorded without fail.

Mr Sokolov, please.



Minister of Transport Maxim Sokolov:

Mr President, colleagues,

The transport sector is one of the largest consumers of industrial products, including those used in the construction of transport infrastructure.

It should be noted that unfortunately, at present, the list of products that transport industry enterprises need is not entirely covered by Russian-made products. A certain share of them is procured from foreign manufacturers. In this connection the Transport Ministry prepared lists of priority types of products, services and software, which are critical in terms of import replacement and national security that were sent to the Trade and Industry Ministry and other government agencies concerned.

Based on these lists, the Trade and Industry Ministry developed and approved under a corresponding order – naturally, endorsed by the Transport Ministry – sectoral import replacement programmes. Mr Manturov spoke about them. With regard to the Transport Ministry, they are related to four programmes: the automotive industry, commercial aircraft engineering, transport equipment manufacturing and shipbuilding.

This year we held a meeting of the Scientific and Technical Council to consider proposals concerning the use in the transport sector of products manufactured by enterprises affiliated with Rostec state corporation, including with the participation of enterprises such as the Splav Scientific and Production Association, where we are now, Vysokotochnye Kompleksy, the Central Scientific Research Institute for Precision Machine Manufacturing, and Motovilikha Plants.

Based on our analysis, we have set up a working group that ensures prompt and efficient interaction to promote certain models and types of products in the transport sector.

We have formed a structured consolidated contract for the next three years and for a longer period for Russia’s regions and transport enterprises, which the companies and ministries, including the Industry and Trade Ministry, will use to develop their long-term policies. It concerns the purchase of trolleybuses, tramcars and buses, including natural gas-fuelled ones.

We are also using the leasing mechanism for supporting our engineering industry through the State Transport Leasing Company. The volume of contracts has exceeded 200 billion rubles, out of which some 40 billion rubles worth of contracts were signed in the first eight months of this year.

The leasing system for supporting the transport and engineering industries is also designed to renew the transport companies’ pool of vehicles, encourage import replacement and attract extra-budgetary investments. For example, the aviation industry will continue to implement the programme of operating lease of the Sukhoi Superjet airplanes in 2016. As of September 1, the State Transport Leasing Company (STLC) has delivered eight Superjets to Russian regional airlines, six of them in the first eight months of this year.

We are also working on a leasing mechanism for the helicopter industry and on localising the manufacturing of Let L-410 Turbolet and other Russian aircraft projects, such as Il-114 and Il-96–400. We have prepared these proposals jointly with the Industry and Trade Ministry and forwarded them to the Government within the current budgetary process and the anti-crisis plan.

The implementation of these projects will allow us to buy over 120 Russian-made aircraft in the next three years, that is, in 2017–2019. The STLC now has a pool of 66 aircraft.


(Maxim Sokolov went on to report on a non-commercial leasing programme for passenger transportation, including in Crimea, as well as water and railway transport.)


In short, by implementing the above-mentioned plans, which the Industry and Trade Ministry has approved, and by forming a consolidated contract for the regions and for each kind of product, including its financial aspects, we are working in keeping with the policy of import replacement and diversification in the defence industry.

Thank you.



Vladimir Putin:

Thank you.

Please, Mr Novak, your report on energy issues.



Energy Minister Alexander Novak:

Mr President, colleagues,

Annual investments in the fuel and energy sector total about 3.5 trillion rubles, the potential demand for the industry, which is now mainly met by Russian companies, including those in the defence industry. At the same time, in each of the sectors, there are critical technologies that depend on imports.

We have worked actively with the Industry and Trade Ministry to draft seven sectoral plans of import replacement, which also include the fuel and energy sector. They have been approved. I would like to say that we have selected several areas for import, or 18 priority technology areas – 11 in the oil and gas industry, three in the power sector and four in the coal industry.

I will not list all of them, but would cite some examples, such as hydraulic fracturing, natural gas liquefaction technology, compressors and flexible tubing. In power generation, there is the electric power equipment for AC mains with voltage of 330 kV and above. We have compiled a database, determined the range of critical technologies, and a list of enterprises, including those in the defence industry.

One of the key areas is software development (the Governor has talked about it here). Software accounts for our greatest import dependence in the energy sector today. I am referring to automated control systems for digital data transmission systems, and IT-equipment in general. There is critical dependence on imports in software tools for the drilling process in hydrocarbon production and for directional drilling, with import volumes increasing, while the existing demand for these products is very important for us.

As for power generation, there is a need for high-tech equipment, transformers, circuit breakers, generators and diesel generator units. Today at the display, we could see that the Tulamashzavod company makes backup power supply units (diesel generators), which enjoy high demand today, more than a thousand pieces a year.

Russia currently imports mobile gas turbine power stations, and does not produce them. We actively used these generators in Crimea when there were issues with power supply there. I think that we need to develop our own mobile gas turbine stations with a capacity of up to 25 megawatts. We have everything to do it, since producers within the defence industry complex and the United Engine Corporation (Aviadvigatel LLC) already have the necessary power units.



Vladimir Putin:

We should also export this equipment.



Alexander Novak:

Of course, there is a huge demand for these products. Mobile gas turbine power stations could be used in isolated regions, like Kaliningrad. So far, we have been using imported equipment.

Another important segment is gas turbine units. We currently have some 500 turbines with a capacity under 40 megawatts and a service life of over 30 years. This is a major order for the United Engine Corporation.

Mr Manturov, Mr Chemezov [Rostec CEO] and I had a special meeting on this subject, during which we identified what is needed and will move in this direction. We have also agreed to draft a special programme that would provide incentives to Russian companies to replace worn-out equipment and buy new technology from enterprises currently operating within the defence complex.

Finally, another important subject we are working on in the power generation segment is the development of a high-power gas turbine unit. Rostec affiliates are currently working with Inter RAO and RUSNANO on a pilot project to build a 110-megawatt power generator. Tests on the relevant equipment are expected to begin in 2017, and production could start in 2018. This goes to say that this will be our first 110-megawatt generator.

Let me say just a few words about the oil and gas complex. We have great potential in this respect. We have created a research and technology council within the ministry with 13 groups that work on specific technology areas. They are headed by the heads of oil and gas companies: Gazprom, Rosneft, Gazprom Neft and Novatek. This means that these companies are customers, while also contributing to the development efforts alongside defence industry producers and the academic community. The key areas are high-flow compressors, heat-exchange equipment and catalysers for making Euro 5 emission standards fuel.

In the gas industry, we are working on large-capacity LNG equipment, 65 to 85 percent of which we have to import. Gazprom has started buying the Russian-made GPA-Ts-25 gas compressor units for its trunk pipelines. I have mentioned the United Engine Corporation’s company Aviadvigatel, which has delivered 30 power units for Nord Stream and for the Ukhta-Torzhok gas main. We will place contracts with these companies for the Power of Siberia, Nord Stream-2, Turkish Stream and other pipeline projects.

We support the proposals on encouraging production and marketing, which Mr Manturov has mentioned. Moreover, seeking to stimulate the coordination of efforts by consumers, users and manufacturers, we have created a database, an information system that facilitates the retrieval of information, including on the fuel and energy sector’s requirements.

Thank you.



Vladimir Putin:

Thank you. Mr Sokolov, what can you report on the communications industry?



Deputy Minister of Communications and Mass Media Alexei Sokolov:

Mr President, colleagues,

The ministry’s responsibilities cover the development of information technology, telephony, internet, postal services, radio and television. These sectors cannot develop without high technologies, and therefore, they are the potential consumers of defence companies’ products.

The Russian market of telecommunication equipment is estimated at some 200 billion rubles, 100 billion of which are operators’ expenses and the other 100 billion spending by corporate consumers. Of these 200 billion rubles, foreign producers receive about 160 billion, which means that our defence companies can compete for the right to manufacture these products. We are ready to help them.

Working jointly with the Industry and Trade Ministry, we have analysed the development programmes of the largest Russian telecommunication operators. We have prepared a summary table of requirements for equipment, by item and year, until 2020.

Today we are actively cooperating with the Asian and European manufacturers combining our software with their equipment or hardware components. Given the large state defence orders, a number of defence companies, such as the Rostec and Rostelecom joint venture, started a project to move manufacturing of telecommunications equipment to Russia. Defence companies are capable of producing servers and switching equipment, various gadgets, smartphones, tablets (the latter with cooperative design work).

I would like to cite a few examples of re-introduction of original defence industry projects in the information technology industry.

First, the Elbrus processor, which was initially designed for defence and security needs. Due to that project, we are now ready for serial production of this processor with a unique architecture. Other countries only have the American Intel x86 base.

We have transferred the passport and visa information system to Elbrus-based servers to break the dependence on IBM processors. The Interior Ministry plans similar changes for the next year to establish its departmental accounting systems.

As for eliminating the dependence on imported CNC machines, as Mr Dyumin said, we have initiated work in conjunction with the Industry Ministry and STANKIN Technology University to develop high-tech-based machine control systems based on the Elbrus microprocessors.

The second example involves equipment for the enforcement of the anti-terrorism amendments, known as the Yarovaya Package.

We have analysed the six-month demand for data together with telecom operators and selected two models for the traffic storage and management system architecture.

The first model involves scaling finished technical solutions for operational investigative needs, the so-called SORM-2 Internet search and surveillance system, which provides storage for a 12-hour backup (this system is used by about 70 percent of Russian operators), and a gradual build-up of storage volumes to 180 days. This kind of approach will require the procurement of at least 5 million sets of equipment.

Operators’ expenses can be reduced either through cutting the cost of their equipment, or by limiting the storage time and type of data to be stored.

We are aware of the extremely negative response from a number of industry players. Some said these amounts will be included in customer charges. So we worked out another model, based on a preliminary analysis and selection of data to be stored, which will reduce the costs of large telecom operators by 90 percent or more.

Both options have been calculated on the basis of standard server equipment and specialised software.

At today’s exhibition, the MCST company – the manufacturer of the Elbrus line – showed the finished data storage system. With the serial production of the microprocessors they use (which our defence companies are ready to do), we will be able to supply at least 400,000 database storage units and significantly reduce the operators’ costs – that, without the plan to optimise the amount of data to be stored.

One of the main problems in implementing the import replacement programme, from our part, is consumer ignorance of the opportunities that exist for the manufacturing of domestic equipment. Therefore, we are ready to organise expanded meetings of defence industry enterprises with telecom operators, TV and radio companies, IT companies and software developers. We are ready to assist in the creation of a unified information system, expanding the defence industry’s capabilities for the production of civilian goods.



Vladimir Putin:

In addition to public procurement, in addition to our direct influence on the market, as the Deputy Minister just said, we still have state-owned companies or companies with predominant state participation. I would like to hear some brief reports from Roscosmos, Rosatom and Rostec.

Go ahead, please.



Director General of State Space Corporation Roscosmos Igor Komarov:

Mr President.

The share of noncore (non-rocket space) products in the space industry is about 10 percent. Understanding the need for the diversification of our production, we are moving along several lines.

First, increasing the share of civilian products. In this connection we are increasing export and enhancing efficiency. This year, our export earnings will go up to about $1 billion.

Second, commercialisation and the generation of additional revenues from commercial operations, the provision of commercial services.

Third, the development of noncore production, which currently accounts for 10 percent. In the next seven to eight years we plan to raise this share to 20 percent. As far as these products are concerned, Roscosmos enterprises manufacture for the oil and gas sector gas pumping equipment, magnetic suspension systems and other equipment for gas pipelines.

For machine-building sectors, we have a wide range of products, including control systems and units for locomotives, electrical equipment for nuclear power plants and components for the auto industry and transport.

For the medical industry, our enterprises manufacture prosthetic and orthopaedic products, equipment for newborns, x-ray equipment and hyperbaric oxygenation systems, that is, pressure chambers. In this respect, we also intend to develop cooperation with the Healthcare Ministry and increase this production.

Regarding dual-purpose products, our enterprise manufactures components and elements of aircraft turbo jet engines, electric machines for the submarine fleet and optical location devices for combat vehicles. A great deal in fact depends on enterprise managers. We see that even enterprises that manufacture combat rocket systems are converting to civilian products and water purification systems, among other areas. We will continue to prioritise this sphere.

Unexpectedly, in the process of modernising our enterprises, optimising and implementing production upgrade and modernisation programmes, we saw an effect from the premises thus vacated and setting up production facilities unrelated to our core activities.

For example, an agreement will soon be signed with the Moscow Government on the Khrunichev State Research and Production Space Centre and the land plot that will be allocated will produce more than just a financial effect for the enterprise. In the near future I believe we will sign an agreement with [Moscow Mayor] Sergei Sobyanin on establishing a technopark that will serve as a basis for the development of new scientific areas in the space sector and for the creation of new jobs that will not be directly related to Roscosmos, but companies will engage in activities that are new to us: selling commercial [satellite] imagery, working on the navigation service market, and providing other services. We also see serious prospects in this area and will actively develop them.

Thank you.



Rosatom State Atomic Energy Corporation CEO Sergei Kiriyenko:

Mr President, colleagues,

We at Rosatom have identified several areas. After consultations with our colleagues from [other government] agencies, we had a clear understanding of the needs and compared the characteristics of our technologies and imported equivalents.

We have identified five priority areas: medicine, security, machine building, information technology and new energy.

I can say right away, Mr President, that aggregate growth in 2015 was over 60 percent compared to 2014. In other words, import replacement is working.

We have even made a catalogue. It is a list of products manufactured by nuclear weapon making enterprises.

Medicine. These are primarily isotope products and radioactive pharmaceuticals. We cover 100 percent of the Russian market. We have already reached agreement with Ms Skvortsova to factor in the Healthcare Ministry’s programme to increase supply and will augment our capacity to meet Russian market demand in full.

Our exports of radioactive pharmaceuticals and isotopes have increased considerably, by 30 percent. In other words, at present, we meet the needs of over 30 countries: molybdenum-99, cobalt, iodine and an array of other essentially new preparations. Of course, our prime task is to combine this with equipment production and establish a full technological cycle.

In some sectors we had to use foreign-made equivalents and build up localisation while others are already 100 percent Russian. For example, the Agat contact radiation therapy system has 100 percent localisation in Russia and demand is so high that we were unable to bring a model to an exhibition. Mr Manturov requested one but we were unable to provide it because they are snapped up like hotcakes. Consumers refused to make them available for the exhibition. They said: “Forget the exhibition. We need to work.” We meet about 50 percent of demand for these systems in Russia. The outlook is very good.

The second issue is security, Mr President. This is technology that we developed to protect our special sites and facilities. Then we used them on your instructions for the Olympic Games in Sochi. At present we have installed them under a contract with the Mayor’s Office and the Moscow Metro. We are installing these systems at railway stations in all cities that will host the World Cup. Demand is high. We have already received a query regarding the possibility of using it for the 2022 World Cup in Qatar and the Universiade in Almaty and Krasnoyarsk. This technology has an admirable track record.

Our engineering projects are fully in line with the programme that is being developed at the Industry and Trade Ministry. We fit in perfectly.

As for information technology, we reported on this in Sarov, Mr President. It is obvious that the Government has invested heavily in super-computers and Russian software for modelling special nuclear tasks. This software enjoys demand now in light of the sanctions.

Today we had a fruitful meeting with senior managers from the SPLAV company that showed that our modelling of nuclear test explosions in conditions of a nuclear test moratorium can be also used in the creation of new SPLAV technology. This is why we have agreed to cooperate.

There is also demand for the Logos 3D modelling software and the Nymph software, which can be used for fluid and natural gas filtration, in the oil and gas sector, as Mr Novak said.

As for renewable energy, we have been instructed by the Energy Ministry to assume responsibility for creating wind parks in Russia. We have won a tender in this area. We also have excess facilities for the production of carbon fibre, which we used to manufacture for centrifuges and other special equipment. Therefore, we have been ordered to increase localisation. On the other hand, it is a good opportunity for Russia and for boosting exports. These parks could be useful in the countries where we are building nuclear power plants: nuclear plants can produce the bulk of energy, while wind parks can produce variable amounts of energy.

I fully support the proposals that have been aired here in terms of long-term contracts for the production of medical equipment. What we need to know is the requirements for such equipment by year and parameters. We don’t need any investments; we have enough funds we can invest in this project. But we need guarantees that if we produce quality equipment with required specifications it will be sold, or leased, or purchased on instalment. Any of this will suit us. I consider as correct and fully support the proposals made by the Healthcare Ministry and the Industry and Trade Ministry.

I would also support the idea of research units at Suvorov military schools. It is a very good idea. We know how important it is to provide solid university education, but it turns out that starting to learn a high-tech profession in high school is too late. We should start much earlier than that. We know this because we had so-called nuclear classes in several regions. In short, it is a good idea, and we would support it.

Thank you.



Vladimir Putin:

Thank you.

Mr Artyakov, do you have anything to add?



Rostec State Corporation First Deputy General Director Vladimir Artyakov:

Mr President, colleagues,

It so happens that Rostec is a kind of a poly-company that is currently involved in all sectoral programmes. This especially applies to the civilian sector and import replacement. I would particularly like to note this because, as all of our colleagues here said, a significant share of products in all sectors today are imported.

Considering that we began to work on the issue much earlier and in keeping with your instruction, we understand that the maximum share of civilian products should be manufactured at home, factoring in 50 percent. We set ourselves these targets.

I would like to consider several proposals and perhaps even examples related to the Healthcare Ministry, the Energy Ministry, Communications Ministry, and the Transport Ministry.

As Ms Skvortsova said, we are in close contact with the Healthcare Ministry. I could cite examples related to the Schwabe holding, where we produce virtually the entire list of equipment for perinatal centres. These are high-tech products. By using them we develop certain competences. I am not talking about consumables, which are made at virtually all of our enterprises.

However, with regard to the Healthcare Ministry, I would like to point out (we are currently looking into this matter with the Industry Ministry and holding consultations with the Healthcare Ministry) that we are planning to start the development and production of heavy equipment for the Healthcare Ministry. This will set a precedent in our science and technology, but we believe that we will cope with this task.



Vladimir Putin:

Not exactly. The production is already there.



Vladimir Artyakov:

Considering that all of our products are imported…



Vladimir Putin:

Not all. But there is a lot of import – a lot.



Vladimir Artyakov:

Yes, indeed.

We believe that if we set this objective before ourselves and achieve it this will be a serious import replacement programme, which will save significant resources and increase the capacity of our defence enterprises in the civilian sector.

With regard to the Energy Ministry, Gazprom, Rosneft, Gazprom Neft, and NOVATEK have stepped up their gas pumping business. The bulk of the gas pumping equipment is manufactured by Rostec.

Mr Novak mentioned that Rostec with all its divisions and enterprises will participate directly in the new projects that are being put together by these companies, which is a new development. Now we have a clear-cut import replacement programme developed by the Industry Ministry, Energy Ministry, and state-owned companies, primarily, Gazprom and Rosneft, which in and of itself keeps our enterprises busy and improves their bottom line. Using this as a basis, we will develop a new product for these customers.

In conjunction with the Energy Ministry, we are actively working on a programme for building small power plants in our country. We believe (and the Energy Ministry supports us) that our grid companies and generating stations incur major losses, including sizable overheads. There are territories where it is necessary to build small power plants. We are prepared for this scenario. We are putting together complete packages for building such plants to supply power to towns and small districts. This system can be effectively used in the Caucasus, where the grid economy poses numerous problems and is fairly unprofitable. We discussed this with the leaders of the Caucasus. They liked the idea, and we will implement this programme with them.

With regard to the Ministry of Communications, I would like to focus on the telecommunications equipment, which many companies are willing to market. The Ministry of Communications gave it the green light, and we are working on it together, but we are still at an early stage of work, as it is necessary to deploy a new production system. We are willing to do this work. We have the equipment and, most importantly, the people who can do this work are willing to go ahead and do this.

On a separate note, Mr President, I would like to mention the projects involving cooperation with the Transport Ministry. Mr Sokolov did not mention it – it is the GLONASS system. We are now implementing it. Importantly, not only the software, but also the hardware for this system will be made by Rostec, in particular, enterprises operated by Roselectronika. We are ready for this work.

Thank you.



Vladimir Putin:

Good. Does anyone want to speak? Please, go ahead.



Economic Development Minister Alexei Ulyukayev:

Mr President, colleagues,

The obvious task is to increase the share of civilian output in the defence industry by 50 percent by 2025. Unfortunately, it decreased from 33 to 16 percent over the past few years, though not because the production of civilian goods has plummeted. No, the decrease was minor, and the volume of civilian production has been relatively stable at some 500 billion rubles. The decrease was due to the fact that production under state defence orders increased by 50 percent in foreign currency, or threefold in ruble terms, what with the exchange rate. It’s as simple as that.

What do we expect in the near future? As you have said, there will be a nominal increase in the volume of defence orders because we have completed the larger part of the rearmament programme. But the volume of military and technical cooperation projects will be considerable, especially because of the exchange rate movements.

However, the share of civilian products should be increased sixfold to reach 50 percent of the total output. This is not at all a trivial but a very complicated task.

Since the issue concerns high-tech products, our defence companies will not produce pans; these companies have to fulfil state or comparable contracts. In light of strict budgetary restrictions, which will likely remain until 2025, it will be very difficult to increase allocations for civilian projects from the federal, regional and municipal budgets.

What am I driving at? I want to say that we badly need export contracts for these products. The global market is boundless. Civilian products currently account for about 3 percent, actually less than 3 percent, of our exports. But a mere glance at this exhibition shows that the quality of these products is very high, while their prices are much lower than those of comparable foreign products.

What are the impediments to exports? First of all, the certification of products. Only one of these enterprises – I talked to their managers – has its products certified for entering European markets but all of them should have their products certified. Our first task is to ensure certification and licensing, especially with regard to dual-purpose goods, the protection of patents and intellectual property rights.

Second, subsidising logistics, cutting delivery costs.

Third, exhibition activity and promoting our products, showing why they are good.

Fourth, more or less acceptable lending programmes to prepare enterprises for export operations and ensure supplies.

The Russian Export Centre was in fact established to provide financial and non-financial support.

Regarding certification. It seems that we generally agreed that our anti-crisis plan with an asterisk provided for a sum of 1 billion rubles for all the valuable activities of the Russian Export Centre. Now we’ve agreed that this asterisk will be removed before the end of the year and that the 1 billion rubles will go there. This is very important but not sufficient.

The same goes for the provision of logistical support for deliveries by our defence enterprises. We need to ensure these basics in 2016–2017 without fail and then things will run smoother. When there is a definite list of customers, when there is definite demand, a servicing network, support and so on, export starts to grow.

Now we will set about customising our trading houses for this. This year the Russian Export Centre will open 10 trading houses affiliated with our trade missions. We will provide this support through them. I believe this is of major importance.

Thank you.



Vladimir Putin:

What you just said is very important.

Please.



Dmitry Rogozin:

Mr President, the presentations mainly concerned enterprises that already run diversified operations, that is to say have both military and civilian production programmes. Here, everything is more or less clear. Aviation, shipbuilding, the microelectronic industry – it is clear how to change these proportions.

Something else worries me the most: enterprises that are geared toward purely military production, for example, those working for the strategic nuclear forces.

Rather, what we have seen here at SPLAV is an exception to the rule, because no one else has ever been involved in civil manufacturing, meaning that they are not familiar with the market. They are not even aware of how to make inroads on the market. Therefore, letting them find their own way on the market, without administrative oversight and support, is not an option, as they will fail.

In this regard, I would like to say a few words about organising our future work. Of course, what we need is not just a consolidated order, but an aggregate consolidated order, especially in areas such as healthcare, the machine-tool industry, and power industry. The situation here is similar to what we had in microelectronics. We got it underway only after approval of the consolidated order, which should fully account for the outgoing defence enterprises.

Within two months of identifying the parameters of the state armaments programme, we will have a sense of what we have going on at what companies, and when we should expect a decline in output. We should focus primarily of such parameters.

In general, I believe it’s important to introduce a repayable loan system for the companies that get their funding from the Industry Support Fund, because the fund can do so. Indeed, we must provide loans that are not cheap or interest-free, but only repayable loans. I believe the fund will cope with this role.



Vladimir Putin:

Then we need project work.



Dmitry Rogozin:

Correct.

There is an important issue that I would also like to focus on. I’m referring to tightening requirements for categorising products as domestically manufactured, because, unfortunately, there are examples of loose interpretations, when they put in just a few Russian-made screws in a piece of equipment made in China or another country, and brand it as Russian-made.

So, (I will work through this matter with the Ministry of Industry), it is necessary to tighten regulations.

There’s a snag with regard to organising our future work. The fact is that the import replacement plan for civilian products is run by one sub-commission of the Commission for Import Replacement, whereas the defence industry products are overseen by another sub-commission.

I believe this work must continue, of course, as part of the commission’s terms of reference. But since we were the ones who initiated this process, and recently held in Tula, together with Mr Dyumin, a major federal conference on healthcare called The Defence Industry for Healthcare, I believe it’s appropriate to name the Military-Industrial Commission Board as the oversight body, because we can work with the civilian ministries for aircraft manufacturing and shipbuilding. We're involved in this work anyway. I have no problem working with the Energy Ministry, the Healthcare Ministry, or any other ministry.





The source of information - http://en.kremlin.ru/events/president/news/52852
 
Old September 17th, 2016 #35
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Several Russian officials report to President Putin:





Meeting with Head of Rosatom State Corporation Sergei Kiriyenko



Vladimir Putin held a working meeting with Head of Rosatom State Atomic Energy Corporation Sergei Kiriyenko.



September 12, 2016 - 15:30 - Novo-Ogaryovo, Moscow Region





President of Russia Vladimir Putin:

Mr Kiriyenko, I have the usual questions: what is the situation in the sector, how is your work going, and how is work with our partners abroad going?



CEO of Rosatom State Atomic Energy Corporation Sergei Kiriyenko:

We have several major achievements as far as work in Russia goes, in particular, the launch of new facilities. We had a key event this summer that was a first not only for our nuclear energy sector but for the world in general — the launch of a new unit at the Novovoronezh nuclear power plant. This is the world’s first generation 3+ power unit. There was much discussion of the ‘post-Fukushima’ requirements following the events at Fukushima. There were many projects, and construction has begun in many places, but it was Russia that completed the first new generation power unit. Overall, this confirms our leadership in the sector.

This is important for us as a benchmark power unit, of course. We are building units of the same type and design in Belarus, Hungary, Egypt and Bangladesh. We have completed this first project and we now have people coming on a pilgrimage as it were, foreign delegations asking to let them take a look at the new face of nuclear energy.

The second important event in Russia was that the BN-800 sodium-cooled fast breeder reactor in Sverdlovsk Region is now working at full capacity. This is a new generation reactor to appear on the commercial market somewhere around the end of 2020, we think. This is the next step in fast breeder technology. Russia is the absolute leader in this sector. We operated the BN-600 reactor with success for more than 30 years, and now we have the BN-800, which is the most advanced reactor in the world. As it is a fast breeder reactor, it uses uranium isotope U-238, which is 100 times more abundant in nature and leaves us with less waste at the end. In other words, this is a much safer and cleaner technology. Here again, Russia was the first to make this a reality.

As for the situation abroad, Mr President, as you may remember, you and the Indian Prime Minister inaugurated the first power unit at the Kudankulam nuclear power station on August 10. The Indian Prime Minister asked us on that occasion to speed up the launch of the second power unit. I can report now that the second unit came on line on August 29 and is now gaining capacity. We are now working actively on the third and fourth units. We have just settled the details with our Indian partners and will be ready this autumn to sign an agreement to build the fifth and sixth units.

They are happy with the product and this seems to have prompted them to want to take the project further. The power unit’s technical characteristics are better than what was in the contract. It was a case of us delivering more than we promised. The unit’s efficiency is 2.5 percent higher than what was set out in the contract, capacity is 2.5 percent higher, and the availability factor is 8 percent higher.



Vladimir Putin:

Is the price the same as before?



Sergei Kiriyenko:

Concerning the price, we met our obligations, but this first unit we built there was much better than originally promised. This is important for our other projects in third countries. Everybody was watching the implementation of this project. The fact that the product was better than what we promised is important.

Finally, Mr President, a ceremony took place at Bushehr in Iran on September 10, the groundbreaking ceremony for the second and third power units. The first unit, overall, was not a straightforward project.



Vladimir Putin:

It had to be redone.



Sergei Kiriyenko:

No one in the world had undertaken such a project. The Germans started building the first unit 30 years ago but then abandoned it. When we took on the commitment to complete it, it had a hole in the roof from a direct missile hit. We rebuilt and completed the unit and won ourselves great trust from our partners in Iran and other countries. We have now signed a framework agreement to build a series of reactors in Iran.

We had a ground-breaking ceremony on September 10 in Bushehr for the second and third units, and then work will shift to another site. In other words, the Bushehr power plant will have three or four units, and then work will continue at another site in Iran. The Iranians have already said the first unit at Bushehr has already saved them 27 million barrels of oil and that each unit will save them 11 million barrels a year. They think the project has already paid itself off and is now generating revenue.

We are also building up a good pace in service and maintenance work. It is important to build new power plants, of course, but we built a large number of plants around the world during the Soviet period, so we set the objective of increasing the services we provide for these facilities. This is bringing in good revenue. The volume of services we provide in this area has increased by around 74 percent, from 17 power units to 24. This year, we want to bring the number of power plants we service to 34. Most important is that this is a long-term job.

We are signing new contracts now not only for construction, but for the whole life cycle, including services, operation, and fuel supplies. In terms of the revenue this generates for Russian industry, this is even greater than the cost of building power units. A power plant will work for at least 60 years. We provide contractual guarantees of 60 years for the new power units we are building, but we know that in reality, they will work for at least 80 years.

Then there are our additional export products, primarily isotope products. Sales here have had a 2.5-fold increase.



Vladimir Putin:

Products for use in medicine?



Sergei Kiriyenko:

Primarily for use in medicine, also in material studies and scientific research. We export to a wide range of countries. Australia and Europe are among our traditional markets. We have started exporting to Brazil, Argentina, Vietnam, Indonesia, Malaysia, even Japan. Our exports are increasing every year and this is good for revenue and also for giving our institutes work.

We are moving further now. We began with isotopes but are now moving into radiopharmaceuticals. As you heard at the meeting in Tula, a complete technological chain of Russian-made medical equipment is in place now. Our objective was to supply not only isotopes or produce radiopharmaceutical products, but to ensure the entire range of Russian-made medical equipment as well.



Vladimir Putin:

The resulting equipment is good, modern and very promising.



Sergei Kiriyenko:

Yes, the technical characteristics are just as good as and sometimes even better than those of foreign equivalents, and the cost is at least twice lower.





The source of information - http://en.kremlin.ru/events/president/news/52878






Meeting with President of Transneft Nikolai Tokarev



Board Chairman and President of Transneft Nikolai Tokarev briefed Vladimir Putin on the company’s current activity.



September 12, 2016 - 18:00 - The Kremlin, Moscow





Vladimir Putin:

Mr Tokarev, let us begin with the company’s results over the first nine months of the year and then move on to some specific matters.



President of Transneft Nikolai Tokarev:

Mr President, the company’s operations are stable, activities are proceeding as planned and we are set to meet our targets for this year. This concerns all areas — production, financial and economic activity, new construction, and the complete overhaul, reconstruction and modernisation of existing facilities.

We have allocated a total budget of 349 billion rubles for this work this year. Of this, 159 billion rubles is for new construction and the rest is for the complete overhaul and modernisation of existing facilities.

Taxes and wages are paid on time. By the way, the average wage in the company is around 75,000 rubles. Wages are lower in the central regions. In Bryansk Region, for example, the average wage for the region as a whole is 28,000 rubles, but our company’s workers in this region earn 38,000–39,000 on average, and in the northern regions our workers earn 110,000–115,000 rubles.



Vladimir Putin:

It is tough work they do up there.



Nikolai Tokarev:

It is, and the conditions are completely different there. We pay special rates for working in the Far North. This is why wages are higher there.

Overall, we can guarantee that the facilities we planned to complete this year will be ready by the end of the year. This includes our biggest projects that we have been carrying out over these last four years. The Zapolyarye-Purpe project is in itself a unique undertaking that will give oil workers access to new fields in the Far North, beyond the Polar Circle.

Our developers and designers received a state prize from the Government for new and very original engineering solutions that were used in building this oil pipeline.

We have already defended more than 30 international patents for these developments. In general, when this pipeline starts operation, it will make it possible to compensate in a large part for the noticeably reduced volumes produced at the West Siberian fields today. Planned capacity is 45 million tonnes and the first stage will give us a capacity of 32 million tonnes. The oil producers have already started delivering oil. We received our first batch from Lukoil. Now we will test all the equipment in start-up mode.

We thought at first that we would encounter problems with ensuring sufficient oil supplies for the pipeline given the delays in developing new fields, but we think things are moving along at a good pace now and the oil pipeline will be working at a comfortable level.



Vladimir Putin:

Which of the new facilities do you consider the most important?



Nikolai Tokarev:

We have spent four years on the Zapolyarye-Purpe project and it cost more than 200 billion rubles. In December this year, we will complete another mainline pipeline, the Kuyumba-Taishet pipeline, which will also give oil workers access to a region of abundant fields and will link up with the East Siberia–Pacific Ocean (ESPO) system. We have been working on this project for three years and it is now in commissioning and start-up phase. This is a major contribution to increasing production volumes and maintaining them at the level the Energy Ministry planned.

This year, we plan to ship around 482 million tonnes of oil. This is 1.5 million tonnes more than in 2015. Of this total, 238 million tonnes are to be exported, while 244 million tonnes will go to refineries here in Russia. Our domestic refining volumes have somewhat increased after new capacity was added through reconstruction, and then this is a market with a good premium.

At the same time, we are also increasing the throughput capacity of the East Siberia–Pacific Ocean pipeline, bringing it up to design capacity. By 2020, we plan to have 80 million tonnes going through ESPO-1, and 50 million tonnes going through ESPO-2, from Skovorodino to Kozmino. This is the maximum capacity for which the project was designed and built. This involves the construction of ten new pump stations, with construction and assembly work already underway on four of them, and project and prospecting work underway for the rest.

In this respect, we are fully meeting our obligations to the People’s Republic of China. We are ensuring work for our refineries in the region. Overall, the project makes it possible to develop capacity at Kozmino more intensively. Today, our Chinese partners take around 60 percent, even 67 percent, of the oil at Kozmino. Fifteen percent go to Japanese consumers, and then come Malaysia and Singapore, and in small amounts of 1.5 percent — other consumers in the region.

We are working today and have increased Kozmino’s capacity. It will be possible to load 150,000 tonne tankers there now, and this will make it possible to work more intensively.

As far as construction of petroleum product transport routes goes, in accordance with Government instructions, we have redirected freight flows from the Baltic ports of Ventspils and Riga to our own Baltic ports of Ust-Luga and Primorsk, and also to Novorossiisk.

Last year, around 9 million tonnes were shipped through the Baltic ports, while this year the figure was 5 million tonnes. By 2018, we will reduce this flow to the Baltic ports to zero and will direct it to our ports instead, as we have surplus capacity.

The refineries currently provide up to 32 million tonnes of petroleum products for shipping through our mainline system, and capacity currently not needed for crude oil transport will be re-profiled to ship petroleum products. This will enable us to ship up to 25 million tonnes of diesel fuel to Primorsk, and to Novorossiisk from the Volgograd refinery within the Krasnodar Territory group of refineries.



Vladimir Putin:

Good.





The source of information - http://en.kremlin.ru/events/president/news/52879






Meeting with head of Central Bank Elvira Nabiullina



Vladimir Putin met with Central Bank Governor Elvira Nabiullina to discuss the situation in the banking sector and ways to protect depositors' interests and fight money laundering.



September 13, 2016 - 15:50 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Ms Nabiullina, the Bank of Russia is taking aggressive steps to strengthen our financial and banking system. How would you assess the current state of affairs? And what do you think of our efforts to strengthen it?



Governor of the Central Bank Elvira Nabiullina:

The situation in the banking sector certainly reflects the overall state of the economy. Even though things are not running entirely smoothly, the overall situation is stable. Lending is gradually recovering, and interest rates are dropping, but the dynamics are not consistent: one month the indicators grow and the next they drop slightly.

In August, without the exchange rate revaluation, loans to non-financial organisations – companies in the real sector – only grew by 0.2 percent. Consumer loans grew a little more, by 0.8 percent. However, considering the momentum from January through the first eight months of this year, corporate loans fell slightly, while retail loans increased.

Still, consumer deposits are growing, by almost 4 percent since January. One thing that is important is that the volume of US dollar deposits has decreased.



Vladimir Putin:

What is the total amount of consumer deposits?



Elvira Nabiullina:

US dollar deposits now account for 25.9 percent, down from about 30 percent in January, in other words there is a decline.



Vladimir Putin:

And the total volume?



Elvira Nabiullina:

Consumer deposits now amount to aboout 20 trillion, slightly over 20 trillion rubles, or more precisely, 23.374 trillion as of September 1. This is a lot, and in fact, it is a resource base for financing the economy. The financial condition of the banking sector is improving, which is necessary for it to perform its financing functions.

Profits in the banking system have increased substantially, to 537 billion rubles over eight months, or to 2014 levels. This is seven times more than last year, when losses were reported. This money should not be squandered but used as a source for increased investment in the economy.

Structurally, different types of loans have been increasing at a different rate. It is heartening that mortgage lending has been growing at a priority rate, with new loans up by nearly 40 percent. Overall, the annual portfolio has increased by 16 percent. However, there is also an issue of concern to us, which is lending to small and medium-sized businesses, which are vulnerable to the current conditions.

Lending to SMEs has decreased; therefore, special measures should be taken to improve the situation. We are working on these measures together with the Government and in cooperation with the Federal Corporation for the Development Small and Medium Business. We have a special line and a special tool, which we use, as a Central Bank, to issue loans at 6.5 percent interest. Our limit of 50 billion rubles has been increased to 75 billion this year. To date, 11 billion rubles remain, and we will continue working in this area because this assistance is extremely important in light of the high interest rates offered by other lenders.

In general, the situation can be described as stable. The banking system is strong enough to increase lending. But there are also problem banks, which is why we have been working for the past few years on the financial recovery of our banking system.



Vladimir Putin:

The other side of the matter concerns depositor protection.



Elvira Nabiullina:

Yes, to protect the interests of depositors and creditors, we have enhanced requirements for banks and have resorted to drastic measures such as licence revocation. We have revoked 279 licences over the past three years and 68 licences this year.

I’d like to say that the assets of the banks whose licences we have revoked include between 3 and 5 percent of total deposits, by different estimates.



Vladimir Putin:

Do you pay money to people in accordance with the law?



Elvira Nabiullina:

Yes, people’s rights are completely protected within the scope of the ensured sum. Within 14 days, we start paying sums of up to 1.4 million rubles and then the Deposit Insurance Agency works with the remaining property to return the money to the depositors and creditors whose bank accounts were above the ensured sum.

I would like to reiterate that despite the large number of banks whose licences we have revoked, their share of total assets, of deposits is not very large: 3–5 percent. In other words, in terms of the financial system as a whole, the consequences are not so far-reaching.

There are two reasons for the revocation of licences. If an organisation has lost its capital and is financially insolvent it cannot be allowed to remain on the market because if it continues to open deposit accounts for individuals and take money from businesses the scale of the problem only increases, that is to say, losses grow. This is why our focus now is on proactive supervision to identify such problems at an early stage. This is not always easy because there is misleading information and lack of full disclosure.

The second reason why we revoke licences is that a bank is actively involved in dubious operations, that is, services the shadow, or criminal economy. It needs to be said that the violation of laws to combat money laundering and ill-gotten gains accounted for 70 percent of revoked licences as one of the reasons or the only reason.

In our estimate, during these three years, the banking system has significantly scaled down the services provided to the criminal sphere. I have the data here: in 2013, operations bearing the hallmarks of the [illegal] transfer of funds out of the country were put at $1.7 trillion; in 2014, $800 billion; in 2015, $500 billion, and in the first half of 2016, about $110 billion. Of course, we would like the banking system to bring these funds down to zero.

The same goes for converting into cash. We also watch gross transit and the dynamics there are also positive. Most importantly, the number of banks conducting such operations is falling: when we began, there were about 150 such banks. Now there are about ten. Of course, some banks, which are not conducting [such operations] at present could resume them and this is why monitoring is so important to us.

We are doing this not only with regard to the banking system, but also, for example, with the payment terminals that process large amounts of cash, about 900 billion rubles a year. When we started this work, we came across violations of the law. The requirement is that the cash be credited to special accounts and accounted for, but only 6 percent of that amount ended up there. Now they credit 95 percent to special accounts. Therefore, it is important, of course, to cover all the loopholes in the structure to avoid that.



Vladimir Putin:

Are law enforcement agencies any help?



Elvira Nabiullina:

They are, and we are cooperating actively. This work is especially important because these are not just violations of the banking legislation. These are criminal acts. Often banks collapse for non-economic reasons, but actually because of –



Vladimir Putin:

Rogue operations.



Elvira Nabiullina:

Yes. Embezzlement. We came across unique cases, for example, when some banks took money from clients and never documented the operation, which means they stole the money the moment they took it from the people. We could not find it, because the transaction was not reflected in the documents. In those cases, only law enforcement agencies can put an end to this and guarantee the unavoidability of punishment.

The inevitability of punishment is certainly key to preventing similar acts by other bankers. Unfortunately, in many cases bankers flee the country after having transferred the money, which also needs to be brought back to Russia – not just to punish the culprits, but also to return the money. This is hard work.



Vladimir Putin:

But to punish them, you also need to repatriate them.



Elvira Nabiullina:

Yes.



Vladimir Putin:

Or better not let them flee in the first place.



Elvira Nabiullina:

Maybe we need to adjust the legislation, to consider this: there are laws that prevent debtors who do not pay for utilities or traffic fines from going abroad, so when bankers with such amounts of debts just leave… It is clear that you cannot obtain a court order in two days, but it is necessary to think about a system.



Vladimir Putin:

We have to be very careful, of course, so as not to restrict the freedom of travel, but we still need to protect the government and society, and bank depositors, from all criminal acts, that much is clear.

I will issue appropriate instructions to the Government and law enforcement agencies, and let us think about it together.





The source of information - http://en.kremlin.ru/events/president/news/52885






Working meeting with Transport Minister Maxim Sokolov



Mr Sokolov briefed Vladimir Putin on domestic passenger traffic development results in various transport sectors in 2016.



September 14, 2016 - 14:20 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Mr Sokolov, the summer peak period is over now and was a success in general. I would like to hear your assessment though, your view on the different transport sectors’ work.

My second question regards the decisions on preferential conditions for particular groups of the population, by age or by other criteria, on specific routes or in particular regions. I want to get an idea of the future steps needed to ensure that these mechanisms will work with maximum result.



Transport Minister Maxim Sokolov:

Mr President, despite the current economic difficulties, the Transport Ministry and the Government have concentrated the resources needed for developing population mobility and ensuring that people have access to good quality and affordable transport options of the proper standard on all forms of transport. Thanks to the efforts made, over the last 8 months, and especially over the summer holiday season, we saw an increase in mobility and an increase in traffic in all transport sectors.

Domestic air traffic was up by 7 percent for the country as a whole and came to 33 million passengers over the last 8 months. The five support programmes for different types of regional air transport, including transport from the Far East and Siberian regions, have contributed to this increase. This programme has been working for several years now. We expect two airports to pass the 5-million mark with this season’s results – the airports at Simferopol and Sochi. This is a good result.

In rail transport, we have also seen an increase in passenger traffic. This is a turnaround – the first such increase in many years. Over these last 8 months, more than 71 million people travelled by railway. This is almost 4.5 percent more than in 2015.

The increases were biggest on the routes south to the resort areas in the Azov and Black sea region, up by around 16 percent – around 6 million people – on the 2015 figure.

The subsidisation programme we introduced this year has also played a part here. Tickets for children aged 10–17 were sold at a 50-percent discount over the summer holiday period, which helped to increase transport of this category of passengers by 16 percent also. A total 2.5 million children were transported using these subsidised tickets during the summer holiday season this year.

Sea transport has also posted increases, with passenger traffic up by 11 percent. The Kerch ferry link across the Kerch Strait has been particular important in this sector. The figures were up by around 25 percent here and the figures were even higher for some months. The Kerch ferry link is currently the main transport option providing access to the Crimean Peninsula.



Vladimir Putin:

Is the ferry link coping with the traffic?



Maxim Sokolov:

Yes, it’s coping. What’s more, on the peak traffic days in mid-August the ferries carried around 60,000 people and around 17,000 cars a day. In other words, the resources are sufficient as far as the ferry fleet and relevant infrastructure are concerned.



Vladimir Putin:

How many ferries are working the route?



Maxim Sokolov:

Eight ferries are currently working on the route. There are two others in reserve; they are currently undergoing scheduled maintenance. This is as regards passenger traffic. We have another three ferries that carry freight vehicles only. This makes for a quite solid fleet. I can tell you that nowhere else in the world is there such intensity of ferry traffic as here. This is a flagship link and is not only the best example in this sector here in Russia, but is unique in the world in terms of traffic volumes and quality of service.

We have seen an increase on the internal waterways too, with 10 million passengers using these services this year.

By the way, as far as the ferry link goes, we have a convenient service for passengers, who arrive by train, then change over to a bus and then the ferry. We offer a comprehensive single ticket for this service, which runs to seven destinations on the Crimean coast. This service is also subsidised by the Russian budget. Here, we have growth of 15 percent and we now have 400,000 who have used this multimodal transport option.

Overall, we have an increase on all routes and for all transport sectors, and this is good, of course, for the attractiveness of our regions and resort areas as holiday destinations, and not just on the Black Sea coast but in other places too, such as Lake Baikal, the Far East, Altai, and the Caucasus spa towns.

I hope that the 2017 budget will continue to offer these support measures so that we can build on this trend and continue developing our country’s passenger traffic.



Vladimir Putin:

Good.





The source of information - http://en.kremlin.ru/events/president/news/52889





Meeting with Head of the Russian Olympic Committee Alexander Zhukov



Vladimir Putin and Mr Zhukov discussed the results of the 2016 Olympics and the outlook for developing mass sport in Russia.



September 14, 2016 - 15:30 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Mr Zhukov, we already discussed the results of the Olympic Games at meetings at the Sports Ministry, and the Government and individual sports federations. I agreed to meet with you separately though as head of our national Olympic committee to discuss this subject.

What is your assessment? Do you see any new problems or issues? I would like us to get away from the overall political cost and just focus on the sports development problems.

We are preparing for the Council for Physical Culture and Sports’ meeting in October. I hope the national Olympic committee will take an active part in the preparations and in the Council meeting itself.



President of the Russian Olympic Committee Alexander Zhukov:

Yes, Mr President, we will certainly prepare for this. The various federations are currently reviewing the Olympic results and we will present our report at the Council meeting.

Overall, I think our team performed very well. Faced with difficult conditions, the majority of our federations managed to put together very good teams. The athletes themselves demonstrated determination to win and truly great skill in what was not the simplest situation, and I think that our results at these Olympic Games were not bad at all.

We will report to you in detail on all of these matters. In our view, the main result of these Games is the tremendous interest in sport that we see in many parts of the country. Our Olympic athletes have returned home now. Our medallists are getting rapturous receptions and large numbers of children are now joining sports clubs. This is simply wonderful to see.



Vladimir Putin:

One very important aspect of high performance sport is that it can do so much to promote mass sport and spark interest in sport and a healthy lifestyle.

You are also a State Duma deputy and Duma deputy speaker. Which region are you running in now?



Alexander Zhukov:

I head the United Russia group in Novosibirsk and Omsk.



Vladimir Putin:

Novosibirsk and Omsk both have very good programmes for sports development and building the necessary infrastructure. After all, it is not possible to develop sports, especially mass sport, without proper facilities and indoor sports arenas, and this is particularly true in Siberia. Are you updated on what is planned in this area there?



Alexander Zhukov:

Yes, Mr President. What’s interesting is that athletes from Novosibirsk, Omsk and Siberia in general performed with great success at these Olympics. By the way, we have two Olympic champions from Novosibirsk. One is Roman Vlasov in Greco-Roman wrestling, who is now two-time Olympic champion and following in the footsteps of Alexander Karelin. Our fencers performed very well too. Yulia Gavrilova won. You can’t imagine the huge number of children signing up to do fencing after this.

A new fencing centre has opened now, but even this is not enough to fit everyone. That’s just to show how great an impact the Olympic Games and the examples of our top athletes have had.

The same is true in Omsk. They have a strong school of rhythmic gymnastics there. Vera Biryukova was part of the winning rhythmic gymnastics team and we are now seeing a great influx of children wanting to take up rhythmic gymnastics too.

It is good that Novosibirsk and Omsk are both carrying out the programme to build physical fitness and health centres. I think the programme to rebuild gyms in rural schools is also a particularly important initiative as this is essentially the only chance the children there have to practice sports.

We who were in the outgoing Duma and in United Russia think that these two programmes, the one to build fitness and health centres and swimming pools, and particularly the programme to repair rural school gyms and village stadiums, are very effective. They make it possible for children to practice sport, and not for just children, but for the entire population to lead a healthy lifestyle. I think it important to continue these programmes. They have great support among the local people.



Vladimir Putin:

We must help the regions and municipalities to carry out these plans.

Let’s get back to the Sports Council. I ask you to take part in the upcoming meeting’s preparations. Do you have any thoughts or proposals on this subject?



Alexander Zhukov:

Yes, I do have some thoughts. As I said, most of the federations produced good results, but in some cases we do need to recommend that certain decisions be made. I can say that overall, the system of goal-focused preparation according to individual programmes for the different sports disciplines has proven its worth. This ensured an individual approach to the athletes. We will brief you on this.



Vladimir Putin:

Ok. I met with the Olympic athletes and, if you recall, some of them, even some of the gold medallists, made concrete requests and noted that much still needs to be done to develop some sports (handball, for example, and other sports). Let’s not forget this. I want you to examine and summarise these requests and formulate proposals on what to do next.



Alexander Zhukov:

We will do this, Mr President, and will report back on the situation in the different sports. In cases where greater state support is needed in terms of building important sports facilities and so on, we will draft and present proposals.

I think that holding major sports events in Russia is also very important. Novosibirsk, as you know (we discussed this at the last State Council meeting), dreams of hosting the world youth ice hockey championship. You expressed support for this idea. The Government has already approved a decision to support the bid and the matter is now in the hands of the International Ice Hockey Federation. Rene Fasel [President of the International Ice Hockey Federation] knows how much we love ice hockey in Novosibirsk and supports our bid too.

I hope very much that this decision will be approved and that we will carry out our project to build a new ice hockey stadium. This is essential for an ice hockey-loving city like Novosibirsk because the current stadium dates from the 1970s and has become rather outdated and worn out. I think this is an important project.



Vladimir Putin:

I hope this will all be carried out.



Alexander Zhukov:

Thank you.





The source of information - http://en.kremlin.ru/events/president/news/52891
 
Old September 17th, 2016 #36
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

State Council Presidium meeting on developing southern Russia’s transport system



Vladimir Putin chaired a State Council Presidium meeting on developing transport infrastructure in the Southern Federal District in Kerch.



September 15, 2016 - 16:00 - Kerch





President of Russia Vladimir Putin:

Good afternoon, colleagues,

We will discuss today the development of southern Russia’s transport infrastructure. This is a comprehensive task and is crucial for the future socioeconomic development not only of this region, but of the whole of Russia.

The Azov and Black Sea basins already account for more than a third of all freight flows going through Russian ports. The Southern Federal District plays a big part in export-import traffic, including as part of international transport corridors such as the North-South corridor.

We must make active use of the concrete advantages our access to the Black Sea and the Caspian Sea gives us and develop transport infrastructure that is convenient for both domestic and cross-border transport. At the same time, we must base our plans not only on current needs and demand, but also on the future outlook. We need to work for the long term, analyse the likely passenger and freight flows in 5 or 10 years’ time, and take into account integration development and the activities of organisations such as the Organisation of the Black Sea Economic Cooperation (BSEC).

Of course, construction of the bridge across the Kerch Strait is another important point on our agenda today. This is without question a national project of exceptional importance. The bridge will ensure Crimea’s full integration into the general national transport system and will create new opportunities for economic growth.

The construction is proceeding at a good pace, but I want to remind you that this project is not about the bridge alone. It also requires work to prepare road and rail approaches of the highest standards and put in place all supporting and related infrastructure on the Krasnodar Territory side and in Crimea. I stress that this crossing must function as a well-coordinated whole right from the start and ensure a rapid and uninterrupted transport link with Crimea.

I asked Mr Medvedev to make a close examination of the situation with work on the Crimean side. I remind you that we allocated an additional 5 billion rubles for road construction in Crimea this year, bringing the total up to 18 billion this year. This is quite a solid sum. It could be higher, but the real issue is not so much the sum itself as how the money is used. Mr Medvedev will probably tell us in his remarks todays what he saw and how the work is going.

Another item on our agenda today is comprehensive development of the Southern Federal District’s freight transport system. Freight transport volumes are increasing but the railway links serving the Avoz and Black Sea ports are practically at their limits now. The main roads are overburdened and the internal waterways are little used. We discussed these issues in detail at a recent State Council Presidium meeting, as you will recall.

We need to eliminate the bottlenecks and increase transport arteries’ throughput capacity. Incidentally, we have already discussed before the need to build a railway route that bypasses the Krasnodar hub. The relevant instructions were issued and I want to hear today about how this work is progressing.

It is important to remember that our neighbours in the region are also not just sitting idle and are busy creating attractive conditions for international transport companies, including in big ports. We must be ready for this competition and offer freight shippers quality services. This includes rapid delivery and conditions for processing various types of goods.

We also need to find a balance between the different types of transport. This approach would benefit the companies using transport services and the transport companies themselves. We must get private investors actively involved in this infrastructure development work. We already have experience here, for example, the project to develop terminal facilities on the Taman Peninsula. What was the company involved in this project called? ATEK.

Incidentally, we agreed to take into consideration that the private investors are putting their own resources into the project, billions of dollars, and we will keep in mind that the company is investing its own money, and that it is ready to continue this investment and put in even more money than before. This means that we must develop the needed infrastructure approaches to this port. I take the position that these decisions have been made and must be carried out. Let me add that all transport development plans must give maximum consideration to environmental protection issues.

Millions of tourists from around Russia and abroad come to southern Russia, to the resorts of Krasnodar Territory and Crimea. Quality passenger transport, including on interregional lines, and reliable public transport are therefore very important issues. I know there are some proposals in this area and we will discuss them today.

Modernising the rolling stock for passenger transport is another issue. This particularly concerns Crimea, where the transport fleet is in real need of modernisation. We must work consistently on this task.

Finally, one other important area is to improve transport infrastructure in the Southern Federal District towns that will host FIFA World Cup matches in 2018. The new international airport terminal in Volgograd has already opened. Work continues on the Yuzhny airport facilities in Rostov-on-Don. We will need to go there and take a look at how this work is going. I understand that it is going to schedule. There are also big plans for modernising the road network.

Let’s start the discussion.

I give the floor to Mr Sokolov.

Please, go ahead.



Transport Minister Maxim Sokolov:

Mr President, Mr Prime Minister, colleagues,

The Southern Federal District is indeed strategically important for developing our international economic ties, raising our importance in the system of global transport routes, and developing our domestic tourism industry.

The federal district has more than 130,000 kilometres of roads, around 7,000 kilometres of railways, and more than 4,300 kilometres of internal waterways. It has 15 river ports, 19 sea ports, and 13 airports.

Despite the objective current difficulties, the federal district’s transport system has developed well over these last years. We continue active work to develop the road system and our efforts have considerably increased the pace of work over the last two years.

The length of roads of federal significance that meet the required standards increased by nearly 7 percent last year. By the end of this year, we expect that more than 55 percent of the federal roads will be brought up to standard and will give us an increase this year of 10 percent.

Work is currently underway in the Southern Federal District on construction, rebuilding, complete overhaul and repairs to a total 625 kilometres of road and we have upcoming projects for another 560 kilometres of road. This year alone, more than 40 billion rubles in federal budget money are being allocated through government programmes to finance roads in the federal district’s regions, and total budget money for the regional road funds in the Southern Federal District come to nearly 50 billion rubles this year.

Of course, Mr President, as you noted, the main project in the Southern Federal District and indeed in the entire country is the construction of the bridge across the Kerch Strait and the approach routes. You and the Prime Minister are keeping personal watch over this project and its implementation and have visited the site yourselves, but for the other participants’ sake I will briefly describe the project.

The bridge is 19 kilometres in length. The road part has 4 lanes and will allow a speed of up to 120 kilometres an hour and throughput capacity of 40,000 cars a day. The railway part has two tracks with throughput capacity of at least 50 couples of trains a day, with passenger trains travelling at 80 kilometres an hour.

The construction is now in the most active phase. The bridge is being built simultaneously across the full length in eight sections. Piles are being driven into the land and into the seabed to form the supports for the road and rail sections of the bridge. A total of just over 7,000 piles will be driven in. Currently, nearly 2,500 have already been installed to their design depth. We have 116 supports of the 595 planned supports already completed, and work is underway on another 138 supports. Assembly of the bridge’s spans is already underway on the land sections. Assembly of the arch spans for the part of the bridge over the water, through which shipping will pass, is an important stage in the construction work. This work is currently underway on the Kerch side.

Around 3,000 builders from different parts of Russia, including Crimea and Krasnodar Territory, are taking part in the work. More than 6 million tonnes of various goods for the construction work have been unloaded at the site. The construction is proceeding strictly to schedule, partly thanks to timely completion of supporting infrastructure on both sides of the Kerch Strait.

Three temporary working bridges with total length of more than 7 kilometres have been built, as well as two technical bridges, technical, warehouse and industrial sites and temporary docks. Housing for the builders has been completed and is in use now. This covers 3,600 people on the Taman side and close to 1,800 on the Kerch side. Thirty kilometres of temporary roads have been built.

All needed measures to ensure environmental and transport safety are being carried out during the construction work. As we reported, we plan to open the bridge to working traffic on the road section by December 2018, and on the railway section a year later, in 2019.


(Mr Sokolov went on to describe in detail the construction of the road and rail approaches to the bridge from Krasnodar Territory and Rostov Region and on the Crimean side).


Looking at the situation with rail transport in the Southern Federal District in general, it is positive overall and there have been increases in both passenger and freight traffic in the region. This year, trains transported close to 6.5 million passengers to the Black Sea resorts, which is 16 percent more than in 2015. Using the single ticket system, we expect rail passenger traffic to Crimea to come to around 400,000 people this year, which is 15 percent higher than the 2015 result.

As far as freight traffic goes, 75 million tonnes were delivered to the Azov and Black Sea ports last year, which was up 15 percent on 2014. This year, the positive trend has continued and we expect an increase of around 7 percent. But, as you rightly noted, the region’s railways are currently operating at their throughput capacity limit.

We have started carrying out a number of projects over these last years to develop passenger and freight transport capacity. They include construction of a second main line from Volgograd to Krasnodar, bypassing the Krasnodar hub, and the work to electrify this line. There is also construction of the line to bypass Ukraine, and development of the Novorossiysk station. We completed a major project in the region at the end of last year – a sorting station, kilometre 9, at a cost of 11 billion rubles. Of course, these railway construction projects also include the approach routes to the Taman port.

State financing and participation in rail infrastructure development in the region comes to more than 220 billion rubles for the period through to 2019. This is not counting the investment that was made during the period before the [2014] Olympic Games. Once all of the planned projects have been completed, throughput capacity on the railways will come to 100 pairs of passenger trains a day, or 134 million tonnes of freight a year. This will be sufficient. We are effectively doubling freight throughput capacity and increasing passenger traffic capacity by a quarter.

We have planned 15 pairs of passenger trains a day in the summer period for direct links to Crimea through to 2020, and around 9.5 million tonnes of freight. Budget optimisation through to 2019 reduced financing for the Krasnodar hub bypass by around 29 billion rubles. We need to complete this project in full, of course, otherwise it will not be possible to ensure good access to the ports or to the other resort towns in the Azov and Black Sea region.

As far as Crimea goes, the Kerch Strait bridge and its close approach routes will offer sufficient throughput capacity reserves. Concerning railways in Crimea itself, I note that thanks to federal budget subsidies, the railways are working in stable fashion now and traffic has increased considerably. We have seen an increase of 34 percent this year compared to 2015. The number of railway carriages arriving via the ferry crossing is now up by 22 percent.

We have preserved more than 9,000 jobs on the railways. We have agreements with the authorities in Crimea and Sevastopol to maintain a slight surplus of jobs given that the railway link via the bridge will start working in 2019 and we will need to have the required number of workers ready.

We are carrying out complete overhaul of infrastructure using the subsidies allocated for this work. This year, 30 kilometres of railway were repaired and another 50 kilometres will be upgraded next year. We are also studying various electrification options as part of the plans to develop the Crimean rail infrastructure. You gave an instruction on this with a deadline in October. We will approve the proposals with the Government and will brief you on this within the deadline. Increasing traffic on the Crimean railways and electrifying the lines will require additional energy capacity. We already know that we will need around 130 megawatts in addition. This matter will require further work.

Of course, we will also need to modernise the passenger carriage and locomotive fleet so as to have comfortable modern trains operating on the Crimea route when the bridge opens to traffic.

We will need to purchase new rolling stock and locomotives on a basis of, as I said, 15 pairs of trains a day. This will need around 1,000 carriages and 40 locomotives. We also need 14 motorised wagon trains made up of 10 carriages each for local trains, as we are actively developing these routes on the Crimean Peninsula.

These purchases could serve as an anti-crisis measure for supporting our local machine-building industry. Development of Crimea’s infrastructure and purchases of rolling stock could be partially financed through extra-budgetary sources. We are actively discussing these matters.

Let me say a few words now about the air transport sector. As I said, the Southern Federal District has 13 airports, 8 of them are international airports, and 7 are part of the main national network. The federal state programmes have planned for reconstruction of the airports in Krasnodar and Elista. A new airport terminal opened recently in Volgograd, and a new airport facility will be ready to open in Anapa in December.

Of course, we place great importance on Simferopol’s airport in our plans to make Crimea a more attractive tourism destination. We forecast that traffic through this airport will come to more than 5.2 million people in 2016, which is higher than passenger traffic was during the Soviet years. We plan to complete construction of a new terminal by 2018, which, in the first stage, will be designed to handle around 7 million passengers.

Also very important for the region is Yuzhny airport in Rostov-on-Don, which is being built as part of the preparations for the Football World Cup. To be more exact, I should say that a popular vote has proposed giving the new airport the name of Ataman Platov.

Acting on your instruction, Mr President, we are working with the Rostov Region Governor, and our colleagues from Aeroflot and other airlines to organise the route network and develop passenger flows, including tourist traffic, for this airport’s successful operation.

This year, three state air travel subsidisation programmes are being implemented in the district. One of them has made it possible to establish direct transport service between Simferopol and 58 cities in our country.

The second programme has made it possible to operate 14 subsidised routes between district cities – Sochi, Anapa, Gelendzhik, Simferopol – and cities in Siberia and the [Russian] Far East, such as Vladivostok, Irkutsk, Norilsk, Khabarovsk and Yakutsk, among others.

The third programme ensures year-round subsidised transit service to the Southern Federal District for all categories of citizens on 24 routes. The total volume of budget appropriations under these programmes was 1.2 billion rubles. In the first eight months of this year about 100,000 passengers flew under these programmes.

Colleagues, there are 15 river and 19 sea ports in the federal district. To ensure the development of port infrastructure as part of the federal targeted programme to develop the transport system, investment projects are being implemented to develop the ports of Taman, Novorossiysk, Azov, Gelendzhik, Temryuk, Kerch, Yalta, Yevpatoria, Sevastopol and Feodosia.

In keeping with your instruction, Mr President, following a meeting on transport infrastructure development in southern Russia last September, the Government approved a roadmap for the development of sea ports in the Azov and Black Sea basin through 2020. Under the Inland Water Transport Development Strategy, as well as in keeping with the recent instructions issued by the previous State Council Presidium, the Bagayev low-pressure hydro-system on the Don River is being built. The project is part of a federal targeted programme with 22 billion rubles in budget funding. Exploration work is now underway.

The stable operation of the Kerch ferry service has been ensured. Effective measures are being taken to increase its capacity, improve the quality and convenience of passenger transit and ensure transport security.


(Further on, the Minister spoke about a number of problems dealing with maritime transport).


Now, a few words as regards automotive and urban passenger transport. As of September 1, 2016, 224 organisations have been operating in the region, which are engaged in passenger transport by bus, and there are 17 trolleybus depots and 10 tram depots, with total passenger traffic exceeding one billion people.

In 2013–2015, 1.5 billion rubles were allocated under the federal programmes of co-financing regional budgets for the purchase of trams and trolleybuses, as well as natural gas-fuelled buses . Over that time, the fleet was renewed with 581 vehicles. In addition, there is a separate municipal surface transport renewal programme being implemented in Crimea with the overall financing totalling 11.5 billion rubles, including around five billion rubles from the federal budget.

Before 2020, 829 vehicles will be purchased. By now, 230 buses and 32 trolleybuses have already been supplied. But, of course, we believe it necessary to consider extending these programmes as they have proven to be effective and directly sought-after for the urban economies of the regions.

Mr President, Mr Prime Minister,

We have drafted a list of instructions on the issues reflected in these remarks, aimed at their speedy resolution. This project was discussed with all agencies concerned, and also with the Executive Office of the Government and the Presidential Executive Office. We are urging the State Council to support it.

In conclusion, I would like to say that the Transport Ministry has been and will always be doing its best to make sure that the transport system, including in the Southern Federal District, is not a hindrance, but a stimulant for the development of our country.



<…>



Vladimir Putin:

To conclude our meeting and discussion, I would like to make the following point. Of course, the Kerch Strait bridge is a landmark project. But we are here to discuss not only that. We are talking about expanding the entire transport infrastructure in southern Russia, which includes a road to bypass Krasnodar and roads to bypass Rostov, the effective functioning of railways and motorways, the effective use of ports and the prospects for using and building new ports in southern Russia. This involves vast amounts of cargo handling and resolving major issues related to the entire economy. Therefore, we have drafted corresponding directives, which we will amend to include all that was said during our discussion today.

We discussed virtually the same topics in Novorossiysk a year ago. Now we are back to these issues, and we will not lose sight of them, just like we will not lose sight of transport infrastructure development in the Far East, Siberia, the North, meaning the Northern Sea Route, and northwestern Russia. There is, too, a major transhipment complex there, which is quickly expanding. I would ask you to keep in mind the nationwide importance of this complex.

With regard to Mr Bocharov’s [Governor of the Volgograd Region] proposals, I am not sure if we will all fit in the helicopters, since we came here on helicopters, but we will try to go and see the construction [to build the bridge across the Kerch Strait], and make sure that everything is going at the right pace and as scheduled.





The source of information - http://en.kremlin.ru/events/president/news/52898
 
Old September 17th, 2016 #37
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Meeting with President of Kyrgyzstan Almazbek Atambayev



Vladimir Putin had a meeting with President of the Republic of Kyrgyzstan Almazbek Atambayev. The two leaders discussed further development of foreign policy, trade and economic ties between the two countries, including in the context of Kyrgyzstan’s membership in the Eurasian Economic Union.



September 17, 2016 - 08:30 - Bishkek





President of Kyrgyzstan Almazbek Atambayev:

I am very glad to see you and the Russian delegation here. I believe that one of my main achievements over the five years as President is that I managed to steer our relations with Russia back onto a good track.



President of Russia Vladimir Putin:

Mr Atambayev, thank you very much for your kind words. Congratulations again on your birthday. I am very pleased that my colleagues and I can be with you on this day.

Relations between our states are developing in all areas, both in the civilian and the military spheres. Of course, the current situation is challenging, but for the most part, we are handling our problems well. Today we have a great opportunity to discuss the entire scope of our relations.

Yesterday, the CIS summit took place here and I would like to thank you again for its excellent organisation. We can see that our partners have made a great effort to ensure the high level of this event.

Yesterday I had a drive around Bishkek and I am glad to see that the city is changing, and changing for the better. I was there with our ambassador and as a local resident, he was very proud to show me all the improvements.

The general economic growth and improvement in the social sphere are also results of your Presidency and your team’s work, and I congratulate you on this topmost achievement. Happy birthday once again! I wish you all the best.





The source of information - http://en.kremlin.ru/events/president/news/52905
 
Old September 17th, 2016 #38
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Speech at CIS Council of Heads of State meeting in a narrow format



September 16, 2016 - 17:00





President of Russia Vladimir Putin:

Mr Atambayev, colleagues.

I would like to begin by expressing my support for President of Kazakhstan Nursultan Nazarbayev’s idea to issue a statement by the heads of state and delegations to the Uzbek nation on the death of President Islam Karimov. Mr Karimov was an outstanding individual who actively contributed to the creation and operation of the CIS. I wholeheartedly support the idea, unless there are any other considerations regarding this issue. I do not think there will be any.



President of Kyrgyzstan Almazbek Atambayev:

I would like to honour the memory of Mr Karimov with a minute of silence.



Remark:

Agreed.



Vladimir Putin:

Thank you.

Russia supports the statement on the 25th anniversary of the CIS that has been drafted at the initiative of Kyrgyzstan’s Presidency. We believe it is a balanced and substantive document. Most importantly, it provides an objective view on the historical role of our Commonwealth, as our colleagues have said here.

The CIS played a positive role during the period of large-scale geopolitical change after the dissolution of the Soviet Union. This helped our nations to maintain close friendly ties, despite the problems of which we all know. The CIS definitely played a positive role. This facilitated the development of good-neighbourly relations between the new sovereign states based on trust, equality and respect for one another’s interests. As I said, the CIS played a major role in this, despite certain setbacks, including some tragic ones.

It is equally important that the draft declaration reflects our shared desire to further strengthen the Commonwealth, to implement its integration potential and deepen the multifaceted partnership between all the participating countries.

I am confident that adopting this future-oriented statement will provide an additional political impetus to the ongoing work within the CIS to expand trade and investment cooperation, and stimulate cooperation in culture, education, science and sport.

The draft resolution to adapt the Commonwealth to modern realities is equally commendable. I will not repeat what my colleagues have already said here, and I generally agree with it. We think it is the right thing to do to relieve the burden on the agenda of the leaders’ summit by delegating more authority to the Council of Foreign Ministers, the Economic Council of the CIS and their ad-hoc committees.

We believe that special attention should be given to improving the effectiveness of sectoral bodies of the CIS, which should primarily focus on the development and promotion of multilateral cooperation projects that can bring real practical benefits to all participants of the Commonwealth in the economic, social and humanitarian spheres. At the same time, redundant committees need to be eliminated; their total number needs to be reduced. As was already said, we need to improve fiscal discipline and implement a more balanced personnel policy, including recruitment on a competitive basis.

Implementing adaptation will require a major collaborative effort and coordinated work of all the governing bodies, primarily the CIS Executive Committee. In this regard, of course, I would like to draw your attention to the fact that we are looking for experienced specialists, professionals familiar with all the particularities of the functioning of the CIS.

Development of the CIS will become a matters of priority in Russia’s activity within its upcoming CIS Presidency in 2017.

I would like to remind you of our proposal to hold the next meeting of the Council of Heads of State on October 11, 2017, in Moscow.

To conclude, I would like to congratulate our host today, the President of Kyrgyzstan, on hosting very interesting competitions. Our national media have covered this event. Honestly, I did not expect it to be so interesting. I am referring to the World Nomad Games. It was fantastic.



Almazbek Atambayev:

Mr. Putin, the most important thing is that there are no issues of politicisation or WADA. Look who was doping after all.



Vladimir Putin:

Yes, that is true. We will talk about this informally.

I am surprised by the latest hacker revelations… We do not share hacker activity, but what they have done is extremely interesting for the global community, mainly the athletic community. This raises many questions. Healthy athletes legally take medicines that are prohibited for others, although people, who suffer from severe diseases or serious disabilities, are excluded from the Paralympic Games merely on suspicion of taking certain medicines. This is outrageous, but this is a separate issue, which is not on the agenda of today’s meeting.

The fact that the President of Kyrgyzstan has held such an outstanding competition as the Nomad Games is great. My congratulations! Thank you very much.





The source of information - http://en.kremlin.ru/events/president/transcripts/52903
 
Old September 17th, 2016 #39
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Answers to media questions



Vladimir Putin answered questions from Russian journalists upon completing his working visit to the Republic of Kyrgyzstan. The President of Russia participated in a meeting of the CIS Council of Heads of State.



September 17, 2016 - 12:15 - Bishkek





President of Russia Vladimir Putin:

Good afternoon. What are we going to talk about? What would you like to know?



Question:

Mr President, what are results of the summit? In your opinion, after 25 years is the organisation still necessary? Perhaps there is no more need for the Commonwealth? What issues were on the agenda apart from summarising the results? Could you tell us which problems will be tackled in the first place? Are there many disagreements within the CIS?



Vladimir Putin:

As a rule, disappointment happens because of excessive expectations. Perhaps it is true and when the organisation was being established, the expectations were too high. Actually, it played a very important role, which was probably its historic purpose. The CIS created conditions for its members to make a smooth, gradual and comfortable transition to becoming sovereign states. It created the conditions in which we continued to cooperate with each other and, at the same time, strengthen our own sovereignty.

Each of the Commonwealth states made its own conclusions about the organisation’s work and, therefore, we approached the 25th anniversary with an almost unanimous opinion that can be considered the main outcome. The shared opinion is that the CIS must continue as a full-fledged international organisation. This is the first point.

Second. Everybody believes – and this is my opinion too – that parallel structures are redundant. Anything that hinders progress, anything that creates and maintains international bureaucracy must be transformed into other frameworks that will be seeking solutions to the specific issues our states are facing.

We know that the post-Soviet countries were left with a huge positive legacy. There are problems, too, and we are aware of them, but there is a colossal positive legacy, including a common infrastructure, a common energy and transport infrastructure, that is both railways and a road network. It is also the Russian language that unites us all.

In the European Union, everybody must speak their own language and they have to use 27 interpreters, while we hardly need any. It is a huge unifying force that we are not even aware of and do not even notice in our everyday life and everyday communication. However, it is a significant aspect of our existence and an important positive factor of our collective development.

I believe this is the most important point. We have outlined paths and directions for the organisation’s further development and will follow them as we move forward. As you may know, Moldova is in line for the next presidency but there are difficulties we all know about and we hope that Moldova overcomes them as soon as possible.

Yesterday and today, I had very productive meetings with the Prime Minister of Moldova. I hope we can build a positive working dialogue and we will see how it goes. We would really like to find consensus, but bilaterally it is not possible any more considering that Moldova has signed an agreement with the European Union. Now we obviously need to involve the European Commission. I hope we can work out some successful solutions.

This is what I have say about yesterday’s meeting. As I said yesterday, Russia is hosting the next summit. At the request of our colleagues, it will take place in Moscow in October 2017.



Question:

Mr President, the election campaign is gaining momentum in the United States and you are playing a certain role in it – at least, your name features in both candidates’ speeches more and more frequently. What do you think about this? And since you are in a way part of this campaign, would you tell us more specifically who you will be supporting, Trump or Clinton?



Vladimir Putin:

About supporting either candidate, as I said before, I cannot tell you anything new, and I do not want to. The only thing I can say is that we will support any person in any country that wants to build neighbourly and partnership relations with us. Anyone. Of course, we are following the events in the United States very closely and we do sympathise with those who publicly state the importance of building relations with Russia based on equality and see a great value in this for their country and the international community in general. This if my first point.

The second, regarding the use of Russia and the President of Russia in the US presidential campaign, I really hope that it is a result of Russia’s growing influence and importance. However, I believe that it is mainly related to attempts to manipulate public opinion inside the country. We see an attempt to recreate an image of the so-called “evil empire” and instil fear in ordinary people. This is very sad because I do find such a crude attempt counterproductive.

Strictly speaking, it has nothing to do with the problems within any given country – in this case, the numerous problems of the United States. It is not a new tactic and in our country we are also seeing attempts to plant information and manipulate public opinion during the State Duma election campaign. They seem to rely on touching very sensitive issues but are in fact very far from the interests of millions of people.



Question:

Mr President, you have not said anything about the progress made in implementing agreements between Russia and the United States regarding Syria. President Obama stated several times and, particularly, yesterday he said that Russia is not fulfilling them and because of that, the United States would not cooperate with Russia. However, at the same time, the US is totally opposed to making these agreements public. How would you comment on this, what is your opinion about this?



Vladimir Putin:

Our US partners have always stood for openness and transparency. There is nothing surprising for me that in this case they proceed from their postulate. I can tell you why: this has to do with the difficulties that the United States is facing on the Syrian track. The difficulty is that they can in no way separate the so-called “healthy” part of the opposition from the semi-criminal and terrorist elements.

In my opinion, this is dictated by the desire to preserve the military potential in the fight against the lawful government of President Assad. However, this is a slippery slope; we have often spoken about this. Our US partners seem to be again falling into the same trap they have fallen into so many times. This is a dangerous scenario.

As for Russia, it meets its obligations in full. Moreover, we have reached agreements with President Assad and the Syrian Government. As we see it, the Syrian forces are implementing these agreements in full. As for making the agreements public, well, perhaps they do not want to do this because it will become clear to the international community, as well as to the American and Russian people who is not fulfilling which obligations.

We agreed that Jabhat al-Nusra and others of their ilk have to be separated and it has been shown where they are and where these so-called “healthy” forces are. What do we see now? We see no separation of terrorists from this “healthy” part of the opposition, instead we see these terrorists making attempts to regroup, replace one set of signboards with another, replace one name with another and preserve their military potential. This is what we see.

This is regrettable but I proceed from the notion that we share the determination to reach peace in Syria and the common task of fighting terrorism, international terrorism. This is, truly, a common task. And, without a doubt, everybody understands this, including our US partners who, I will admit, face quite a difficult task of separating the opposition from the terrorists.

I would like us to be honest with each other and only in this case we will be able to move in the direction of achieving common goals. I do not understand why we need to make any agreements secret. However, we, of course, we will not be disclosing any details until our US partners consent to so, due to specific agreements, which are usually reached diplomatically when working with issues like the Syrian settlement.

I would like to reiterate that we feel more positive than negative about this and we expect that the promises made by the US administration will be kept.



Question:

Your address to Russian citizens has been published recently. Have you already decided whom you will be voting for?



Vladimir Putin:

Today is a pre-election silence day. I made a decision long ago when I set up a well-known political structure, a political party, so there is nothing new to discuss here.

In the United States, as you know, the US President is taking an active part in the Democratic Party candidate’s campaign. I do not do this as actively, I created United Russia as a party, and I believe there is nothing to comment on here. However, I would like to repeat that today, on the pre-election silence day, we will not have any campaigning.



Question:

Mr President, yesterday you exchanged words with the Ukrainian ambassador. To my mind, you made a very emotional response to his statement. There is a feeling that due to Ukraine’s position, relations between Russia and Ukraine have deteriorated and will not improve for a long time. In this regard, are you ready to resume talks both with Petro Poroshenko and the Normandy Format? How do you see this situation developing?



Vladimir Putin:

I have already said that we are ready to continue contacts as long as they lead to a positive result, to a resolution of the crisis in Ukraine. We want Ukraine to develop as an independent state, strong economically and in every other aspect; we want to have a reliable, stable partner. This fully corresponds to our national and state interests.

We will do everything we can to reach this goal. But we will not be able to achieve this unilaterally. We cannot, for example, amend the Ukrainian Constitution – only Ukraine can do this, only the Ukrainian leadership. We cannot sign an amnesty law instead of the Ukrainian President, and we cannot adopt a law on elections. We can do almost nothing, only the Ukrainian people and their representatives are able to do it.

What we can do is create an environment for talks and take part in them as intermediaries and guarantors of agreements. This is what we can do, what we want to do and what we will be doing if our partners in Kiev also want this.

Thank you.





The source of information - http://en.kremlin.ru/events/president/news/52907
 
Old September 25th, 2016 #40
Alex Him
Senior Member
 
Alex Him's Avatar
 
Join Date: Aug 2015
Posts: 6,834
Blog Entries: 219
Post

Visiting United Russia party’s campaign headquarters



After the polling stations closed, Vladimir Putin and Prime Minister Dmitry Medvedev visited the election campaign headquarters of the United Russia party.



September 18, 2016 - 21:45 - Moscow





Prime Minister Dmitry Medvedev:

Mr President, colleagues, friends,

Today is a special day, Election Day.

We have gathered at United Russia party headquarters to look at the preliminary results. The fact that the founder of our party, President of the Russian Federation Vladimir Putin, is here with us is a great pleasure and privilege for us. Mr President, thank you for being with us on this day.

Holding elections is an immensely challenging, but very important, task for the state. I would like to take this opportunity to thank all Russians who came to the polling stations today to cast their ballots, thereby expressing their will as the citizens of this country. An important part of the electorate supported United Russia. We can now say with all confidence that United Russia has won.

Ballot counting is still underway. Of course, the exit polls are already out, and you know what they show. We will probably have the final nationwide results by tomorrow morning. The results that are coming in are positive. Our party will command an absolute majority, the extent of which will be determined as the votes are counted.

So, once again, I would like to thank all of you, all the election campaign activists, and all the people of Russia for expressing their position on this very special day.

Mr President, I would now like to ask you to say a few words.



President of Russia Vladimir Putin:

I would like to address both those present here tonight, and all Russian citizens. You have seen the video clip in which I called on the people to go to their polling stations and cast their ballots. After watching a couple of news reports, I thought that they should probably stop showing me. Maybe I’m getting tired of seeing myself on the screen all the time.

On a more serious note, let me say that the people actually expressed their will. Voter turnout is an important indicator. It was quite high, although not as high as during some of the previous elections. What matters for United Russia, just as for any other party is the result. And the result is good.

You know what I thought? We know that life is not easy for people, and that there are many issues that have yet to be resolved. But still, the outcome of the election is what it is. It is already clear, judging by the exit polls, even if some minor adjustments are possible, that overall, as Mr Medvedev said, the party has certainly achieved a very good result and won the election.

Getting back to what I started with, the people have voted for United Russia, even though the situation is difficult.

It means that the people see that delegates from United Russia, the leading political party, are really working for them. Maybe they don’t always succeed, but they are working honestly and as efficiently as they can. Of course, sceptics will say that they are not working as well as they should, but nobody is working better.

There’s another thing: the growing political maturity of our people. This maturity can be judged by the understanding that empty promises are worth nothing.

Of course, people want to live better. They want two or three times higher salaries, and they want pensions to increase faster. They want everything. The question is how to do it.

Debates are ongoing among those who think more funds should be invested in social programmes and those who call for giving priority to the economy. But these are professional discussions aimed at finding an optimal solution to the problems that are facing the country and the people.

I said at a meeting with United Russia activists that there are no enemies in the Government who are holding back the funds. Are they talking about their own money here? Or are they just tight-fisted? It’s not a matter of being tight or generous. What matters is finding solutions to problems.

The people seem to be aware of the desire and intention of the country’s leading political force, which has representatives in the parliament, to work for them and for the country, and the people trust this intention.

It may sound trite, but I will say it anyway: we must justify public confidence. We must work together with the deputies elected from single-mandate districts to create a tight professional core, to structure our activities and move on.

There are many tasks ahead and many issues to be addressed. But I am confident that you will form a solid backbone in the State Duma and will work together with the deputies from the other parties in parliament – I have always said that you must find ways to cooperate with the other parties in parliament – to find solutions that will be accepted by the majority of people.

Once again, congratulations and good luck.



Secretary of the United Russia Party General Council Sergei Neverov:

Mr President, on behalf of all those present, candidates and election agents, I would like to thank you for supporting the party during this campaign.

I believe that people in our country have supported the course you have set, the course to strengthen our country, consolidate our society, develop Russia and make it more independent and self-sufficient. This is the course the people have advocated today by supporting our candidates from the Kamchatka Territory to Kaliningrad.

Crimea, Sevastopol – our candidates have met everywhere and talked about being together and about what we have to do together. This support is reflected in the results that we now see and that the Central Election Commission has announced preliminarily.

Thank you very much.



Remark:

It’s your victory, congratulations!



Vladimir Putin:

Thank you very much. I am happy about this, and – as Mr Medvedev said and is common knowledge – I am always happy to see that the organisation that I built is actually functioning as it was designed, and that it is a powerful way to stabilise the situation in the country.

It does more than stabilise the political situation, it is also engaged in the country’s development and makes very important decisions. Unfortunately, it must sometimes make decisions that might appear controversial at first, but they are designed for the mid- and even long-term. In fact, this is what a responsible approach comes down to. We can give away everything we have today, but tomorrow… promise, but never keep the promise. Or keep it today, but do nothing tomorrow. The point is not merely to hand out funds or spend reserves. The question is how to establish the rules of economic life and to achieve positive results based on these rules. All these issues have been debated, but nevertheless, United Russia has managed to do these things. I hope it will continue to move forward.



Remark:

The election will show that people supported this, Mr President.



Remark:

The most important thing is that the veterans noticed this. This time there were many young people who came along with the veterans. This is really great.



Remark:

At the meetings, you could really feel that people do have faith, and people are supporting the country’s current development direction. There were no serious problems. When you explain everything to people they understand it very well.



Vladimir Putin:

This is the most important thing. When you speak sincerely and honestly, when you believe in what you are doing and in the position you are defending, when you are convinced that yours is the right position, it is always easier and people start feeling it, accepting and trusting you. This is crucial.



Remark:

Mr President, I think that’s the real point. It is my belief that sincerity ran like a golden thread through the preliminary voting and through all the meetings up until today’s decision.

I believe many will agree that this indicates public consolidation, society coming together. In difficult times like we have had recently, smaller disagreements eventually pale into insignificance.

I think what we see here is support. But it is also an extra responsibility that requires serious work because people are showing their support for your policy, they support the country’s current direction, and it is a huge responsibility.



Vladimir Putin:

Supporting the policy is very good, very important. It means there is trust, without which it is impossible to accomplish a lot. But there is also another component and you just mentioned it.

The situation is not easy and people feel it and they want that stability in society and the political system that we were talking about. I think that’s how people feel, and they want this stability. In such a complicated situation they want security in the country, in politics and in the parliament. This was the mood of the public in the run-up to the election and we got the results that our voters wanted. This is what came out of it.





The source of information - http://en.kremlin.ru/events/president/news/52910






Meeting with Government members



September 19, 2016 - 15:30 - The Kremlin, Moscow





President of Russia Vladimir Putin:

Good afternoon, colleagues,

Before we start our work today, I would like to say a few words about the results of the State Duma election, which took place yesterday, September 18. First of all, I want to thank our citizens who came to the polling stations, expressed their view on the developments in our country, and showed a responsible approach to affairs by coming to vote in the election.

United Russia, the ruling party and Russia’s leading political force, obtained a good result. Of course, we can ask ourselves, how is this possible given the big economic and social sector difficulties we have been facing and the drop in people’s real incomes? I think there are several factors here that merit our attention.

First, at a time of difficulties and many uncertainties and risks, people certainly choose stability and trust the country’s leading political force and the Government, which relies on United Russia’s support in the parliament. They are confident that we will act professionally in the interests of our country’s people.

The election result was also an expression of people’s reaction to attempts to exert foreign pressure on Russia, and to the threats, sanctions, and attempts to destabilise the situation in Russia from within.

What conclusions should we draw from this parliamentary election? First, in domestic policy, we must listen to all political parties and hear their message, including the parties that did not make it into the parliament. We must and will develop our country’s multi-party system and support civil society, including patriotically-inclined non-governmental organisations. In the economy and social policy, we must pursue a carefully considered and balanced policy of transformation that will raise effectiveness, change the economy’s structure, and increase the results of support we provide to people who genuinely need state assistance.

At the same time, we must under no circumstances heap the entire burden on ordinary people’s shoulders during these transformations. Our actions must not have even a hint of shock therapy. We must take into account not the average statistical figures, but the real circumstances and income levels of Russian families.

In foreign policy, we must follow a balanced policy of cooperation with all partners, without a shadow of aggression, but with unquestioned respect for our national interests and ensuring our country’s defence capability.

Let me say again that this election result is good, but it is without question an advance on the part of our people, and we now must live up to their expectations. I hope very much that the Government and the new parliament will act in consolidated fashion, combine their efforts and work towards the goals I just mentioned, above all in the interests of Russia’s people.





The source of information - http://en.kremlin.ru/events/president/news/52913
 
Reply

Tags
putin, putin speech, vladimir putin

Share


Thread
Display Modes


All times are GMT -5. The time now is 04:23 PM.
Page generated in 3.79021 seconds.