Question: The sensitive issue of children and their relationships with families was raised at today’s negotiations. Mr Medvedev said in his interview that if the problem can’t be solved at bilateral government meetings, it might be worthwhile establishing some kind of working group.

Dmitry Kozak: We’ve resolved it! A Russian-Finnish contact working group has been established for urgent exchanges of information. Its top priority is to inform the media promptly about specific cases, their background, and the legal basis for decisions that are taken by the Finnish authorities. Some complaints are no doubt based around the actions of the Finnish authorities because they are trying to comply with the Hague Convention on the Civil Aspects of International Child Abduction and with their national legislation in respect of Russian-Finnish families. There are practically no such problems at the top interstate level though these controversies are sometimes blown into international concerns.

The decision to establish a contact group was taken in September to ensure that the public could be informed in a timely manner. Finland has introduced its members [of that group]. Today, the Ministry of Education introduced the Russian members. They represent the Department for the Protection of Children’s Rights and it is their duty to address this problem.

Question: What’s their level?

Dmitry Kozak: They are department heads and deputy heads – people who are directly involved in such issues on a daily basis. They will inform all of us, as Russian citizens, about what is really happening. I think such controversies occur in Russia much more often simply because it’s a big country with a large population. However, such controversies do occur in our relations. When it happens abroad, our concern is easy to understand. Be that as it may, it is our duty to provide accurate information and so avoid misrepresenting the way things really are.

Question: My question concerns the increase in import duties for processed timber products. The Finnish party tactfully circumvented the issue today but it is probably still there.

Dmitry Kozak: Yes, and it would seem to be an eternal problem, even if we had the most minimal import duties. Our position is clear: we want to encourage foreign investors to launch manufacturing businesses in Russia and process Russian timber in Russia instead of exporting it raw. That is why we are encouraging Finnish businesspeople to establish businesses in Russia.

I would also like to point out that about 10 companies who applied to establish wood processing plants in Russia gave up the idea during the crisis, and have not yet reappeared. That is one of the reasons why we had to increase import duties. It is debatable whether the decision had anything to do with Russia joining the WTO or not. We discussed the matter in Brussels yesterday with the European Union, which is just as interested as Finland in seeing import duties reduced for cardboard and certain kinds of paper. We acknowledged that a technical error was made in codifying these goods, and I think we will arrive at a mutually acceptable solution in the near future. This should of course be a two-way process.

I recently met with my Finnish counterpart – the co-chairman of the Russian-Finnish Intergovernmental Commission. We agreed that when the intention was voiced, we should have explained the matter to businesses. The Russian regional authorities, especially in the northwest, are eager to have investments flowing in, and they made all the necessary preparations. However, the interested companies left the market, citing the crisis and the poor prospects of profits. So we will enter into a dialogue that could lead to a mutually beneficial resolution.

Question: What new incentives can we offer Finnish investors to persuade them to establish manufacturing facilities in Russia?

Dmitry Kozak: Besides those mentioned at today’s meetings, we said that we should reduce administrative barriers and create equal terms for competition, now that Russia has joined the WTO. Our industries will now compete in the global markets, and we need to learn to work in such a way as to make us competitive. I think our Finnish partners will find investments in our timber processing industry increasingly lucrative, considering the plans we discussed today and the roadmaps which the Government has endorsed to create a favourable investment climate in many industries. I think investments will increase quite soon.

Question: Did the negotiations touch on the easing of visa restrictions between Russia and Finland?

Dmitry Kozak: Naturally, the matter was discussed at talks with the Prime Minister and the President. We are greatly concerned about this issue. As you know, we are working towards a visa-free regime in the Schengen Area, and we are naturally trying to persuade our Finnish colleagues to share our point of view. They occupy a position beneficial for Russia and will support us because they are interested in having an increased flow of Russian tourists, even though Russian holidaymakers are already coming in huge numbers as it is. Getting rid of visas will be also convenient to the many Finnish citizens who visit Russia on business and sightseeing trips. So our positions coincide. However, this matter affects all the European Union countries. That’s what makes it so complicated – it requires a unanimous decision on the part of all 27 countries.