Vladimir Putin: Mr Prime Minister, my honourable colleagues. I am happy to welcome you to Russia. We are greatly satisfied with the development of the Russian-Bulgarian ties.

I would like to begin our conversation by congratulating you on the upcoming centenary of Bulgaria's independence, which will be on September 22, to the best of my memory.

Russia and Bulgaria have strong long-standing ties. In the recent years we have managed to increase the mutual trade volumes by more than 30% last year in the face of many difficulties. According to our current statistics, Russia is the top exporter to Bulgaria and ranks fourth in sales turnover between our countries.

We have often said that we need to improve the trade pattern. Our commissions should focus on this issue. But we also have a good outlook for major infrastructure projects. We should pay more attention to our mutual investments despite the developments currently hindering the global economic growth.

Again, we are happy to welcome you here.

Sergei Stanishev: Thank you, Mr Prime Minister. I'm glad to meet with you again.

As you have fairly stated, the Russian-Bulgarian relations have been developing dynamically in the recent years. In the past, there was less activity, especially in the economic field. Certainly, we should focus on creating more balanced trade between Russia and Bulgaria. That's one of the tasks for our Government commission.

Our bilateral relations have other aspects in addition to trade. I am very glad that we have signed a series of extremely important agreements during your visit to Sofia in January, including the construction of a new nuclear power plant in Bulgaria. It is very important for us that the work is proceeding according to the schedule and commitments set out in the agreement.

This applies also to the agreement to build the South Stream gas pipeline, which is of great importance for both Russia and Bulgaria, and for Europe in general. The agreement has been ratified by the two countries. Now we need to discuss the terms and conditions to begin the construction of the gas pipeline.

It is very important that the company which is to build the Burgas-Alexandroupolis oil pipeline is properly structured. In my opinion, all these three projects should be closely controlled by our governments to avoid any delays.

I am very happy that the cultural ties between our countries are developing very dynamically. This year is the Year of Russia in Bulgaria, with dozens of events, including concerts and exhibitions, already held. We are also very thoroughly preparing to hold the Year of Bulgaria in Russia.

As we are in Sochi, our delegation comprises many businessmen who work in the construction field and are members of the Bulgarian Constructor Association. Keeping in mind the conversation we had during your visit in January, we hope they will have the opportunity to take part in the large-scale work here.

Vladimir Putin: You have mentioned three projects, Mr Prime Minister, and we also give high priority to them.

We will keep a close eye on the execution of the projects.

The preconditions for the South Stream project are improving.

We have nearly finished negotiating additional gas supplies to the Russian market from our Central Asian partners. We have virtually agreed on the price formula, which obviously makes the project more attractive. The other two projects are also of high importance.

As for the opportunity for Bulgarian companies to take part in building the Olympic facilities in Sochi, it is quite possible.

The construction parameters and documentation for almost all the facilities have been agreed. We were also working on it today. Construction of a number of facilities has already started. We would welcome bids from Bulgarian constructors.

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Statements by Vladimir Putin and Sergei Stanishev summarising the Russian-Bulgarian talks:

Vladimir Putin: First of all, I would like to thank Mr Prime Minister and all of our Bulgarian colleagues for the constructive conversation. Today we have broached almost every issue on the agenda, including economy, international relations and cultural issues.

We will be happy if Bulgaria becomes more active in the Black Sea region. We have discussed economic issues, including energy, military and technical cooperation and major projects. We have also discussed our financial relations, where we appear to have full understanding of what needs to be done, and cultural cooperation. This year in Bulgaria is the Year of Russia. We have agreed with Mr Prime Minister that we will make every effort to launch the Year of Bulgaria in Russia the next year.

Mr Prime Minister has informed us of the Bulgarian Government's intention to hold a conference on energy issues in Sofia. Russia will take an active part in this event. Thank you.

Sergei Stanishev: Once again, greetings to all.

I would like to express gratitude to the Russian Prime Minister for today's constructive talks. In the recent years the Bulgarian-Russian relations have been constructive, dynamic and mutually beneficial.

As Mr Prime Minister has said, we had an opportunity to discuss the entire range of issues, economic, political and cultural. Today we have obtained certain results. We are happy that Russia is going to take an active part in preparations for the energy conference in Sofia due to be held next spring. It's hard to imagine that it could be successful without Russian participation.

In addition, we have discussed the entire range of joint Bulgarian-Russian projects, including the new Belene nuclear power plant and the South Stream gas pipeline. The construction of Burgas-Alexandroupolis oil pipeline is underway.

The issue of the remaining Russian debt to Bulgaria can be considered settled. Now the matter depends on the finance ministries to find a mutually acceptable decision in the shortest possible time. As Russian Deputy Prime Minister Alexei Kudrin said, it is necessary to make the next year in Russia the Year of Bulgaria, which would include holding cultural events, improving economic ties, and promoting Bulgarian presence not only in Moscow and St Petersburg, but also in other Russian regions.

I also appreciate the Russian Prime Minister's congratulations on the upcoming centenary of Bulgaria's independence.

Vladimir Putin: Thank you.