Transcript:

Dmitry Medvedev: Ladies and gentlemen, as the host I’ll take it upon myself to start the news conference.

Prime Minister of Moldova Vladimir Filat and I have just held fruitful talks. As we have noted, these talks have been absolutely honest and open. We agreed from the start to tell the truth to each other, which is not always the case in diplomatic relations. We agreed to be straight about all problems and this is what we did today.

We have mentioned several moments. First, our relations are developing positively on the whole. Bilateral trade is growing at a stable rate of about 20% per year. Last year it reached two billion dollars, and in the first half of this year it has already exceeded one billion dollars. We predict that in 2012 it will be about 20% higher than in 2011.

What is particularly gratifying (and I told Mr Filat about this today) is that our trade is growing not because of higher prices; it’s because of the larger amounts of products on both sides. We still have opportunities to further promote and consolidate our economic ties. We have repeatedly come back to investment cooperation because it still leaves much to be desired, to put it mildly. Both sides can increase their investment since Russia has invested hundreds of millions of dollars into the Moldovan economy, which is not very much, and Moldova has invested tens of millions of dollars into the Russian economy, which is even less. Therefore, we hope to consolidate our cooperation, all the more so since new opportunities for economic cooperation are being created by new agreements, including the treaty on a free trade zone in the CIS, which has already been ratified in Russia, Belarus and Kazakhstan and is now being submitted for ratification in Moldova.

I’d like to repeat that investment projects remain our priority. According to official statistics, Russian companies have invested about $200 million into the Moldovan economy. Even if this figure is underrated (and it is probably underrated because there are specific forms of investment); it is surely no more than half a billion dollars, and this is not much. Therefore, our task is to promote investment cooperation and this is what we have talked about today among other things.

We have discussed many aspects of our economic cooperation. Needless to say, we have talked about the power industry, cooperation in agriculture and the food industry. I think we could consider cooperation in other spheres as well, including high technology because this is always important both for large countries and relatively small ones. There is no future and no development without new technology.

We have spoken about regional issues and discussed regional cooperation at an extended meeting. I was even surprised to learn that 50 Russian regions have agreements with territories in Moldova. This means that regional cooperation is being developed on a large scale. This is good also because human contacts are being established as a part of regional contacts. They have never been disrupted between our two countries, but it is very important to preserve them today now that we are developing independently.

We have just signed agreements on important issues. I won’t comment on them because this is clear. In any event, when we were finishing up our talks at then extended meeting today, I said that Russia has an interest in seeing the Republic of Moldova become a strong and independent country with all attributes of statehood, including such important ones as state sovereignty. We want Moldova to develop as an integral territory and step up the settlement process that has been going on in the last few years – I’m referring to the Transnistria issue.  

Dmitry Medvedev: We will make our contribution and of course we are ready for very frank discussions on this issue, which is crucial for the development of Moldova as a sovereign and independent state. These are the topics that were on the agenda today. I would like to give the floor  to Mr Filat. Mr Filat, please go ahead.

Vladimir Filat: Thank you. Mr Medvedev, ladies and gentlemen, I would like to express my gratitude to the Prime Minister of Russia for his invitation, for the chance to visit the Russian Federation. We discussed all the topics concerning our bilateral relations, but we also discussed the ties connecting us within the Commonwealth of Independent States. Mr Medvedev outlined these topics.

I believe that the dynamics of our relations are positive. That is because our relations are based on transparency and mutual trust. I would like to thank you once again for the frank talks we had and for the emphasis you, Mr Prime Minister, place on the relations between our countries.

I would like to note the fact that we discussed not only topical economic issues but also the cultural sphere. It is important for me that my visit coincided with the Days of Moldovan Culture in the Russian Federation. We should continue to hold events that remind our citizens of the cultures of our countries. This is really important. We agreed that on November 15-16 one more meeting of the Interstate Commission will be held in Chisinau. Apart from these documents, which have already been signed, we will prepare and sign a migration and readmission agreement between our countries. These documents are very important. They concern the interests of our citizens.

I would like to add that an economic forum will be held during the work of the   Interstate Commission in Chisinau. This decision was based on our desire to boost economic relations, give an impetus to investment projects and invite Russian investments to the economy of Moldova.

Of course we discussed the Transnistria problem. I would like to express my gratitude to the Russian Federation for its firm position on the sovereignty and territorial integrity of our country. This process… It is really difficult. The  resolution of this conflict  allowed Moldovan residents to lead normal lives on both banks of the Dniester.

To sum up, I would like to express my gratitude to Mr Medvedev for accepting my invitation to visit the Republic of Moldova. The Ministry of Foreign Affairs is now setting the date of the visit. We will welcome you in Chisinau with all the warmth you deserve. Thank you. See you in Chisinau!

Dmitry Medvedev: Thank you very much.

Question: Good afternoon. I have a question for both prime ministers. The question relates to what you said about the need to boost the flow of investment. How is the export of Moldovan wines to Russia being managed now? Is this issue somehow connected to the improvement of investment conditions for Russian companies in Moldova? I would also like to ask whether the possibility of Moldova’s accession to the Customs Union was discussed during your negotiations. Thank you.

Dmitry Medvedev: The first part of your question is about wine, am I right? And the second is about the Customs Union. I’ll start with the more pleasant topic – the wine. We traditionally discuss imports of Moldovan wines to Russia because this is the wealth of Moldova, a source of our friends’ pride, and a subject of trade cooperation. While not always the case, I believe that our cooperation is now quite stable. As far as I know, 38% of Moldova’s wines are consumed in Russia. Moldovan products make up approximately 10% of the total volume of foreign wine imports in Russia. Considering the size of the Russian wine market, these figures are very good.

However, there are some problems in this sphere, though almost all of the distilleries that produce wine export it to Russia. As far as I know, presently there are no problems with the quality of the wine exported to Russia. We dealt with these problems some time ago.  Today, my colleague and I discussed ways to improve wine supply logistics. I gave relevant instructions to the agencies concerned. That’s the situation with wine.

Regarding the Customs Union, I proceed from the assumption that the decision to participate in any integration union should be consciously and independently taken; such a decision should be taken based on thoughtful consideration of the state’s national interests, if you like. This fully applies to the Customs Union, the CIS free trade zone, the European Union – whatever you like. That’s why we never force our approaches on our friends and partners.

Nevertheless, any integration projects may be a subject for discussion if they are of interest to both states. Needless to say, we are interested in expanding and consolidating the Customs Union, and the Common Economic Space (CES) that we have set up with Belarus and Kazakhstan, but, let me repeat, this should occur naturally. If our Moldovan colleagues are interested in the Customs Union or CES, we are ready to consider this issue. If they want to develop along different lines, they have the right to do so as a sovereign state and should consider all the pluses and minuses of involvement in any integration associations.

Vladimir Filat: Thank you. Should I start with something pleasant as well?

Dmitry Medvedev: Well, if you are referring to wine, this is a pleasant…

Vladimir Filat: I’d like to note that Moldovan wine is not only our national asset – it is also a Russian national asset. I’d like all Russian customers to be able to to buy wine from Moldova.

I’d like to thank you once again, Mr Prime Minister, for your attitude and for the talks, which have been very pragmatic and detailed. When emotions are running high on economic issues, it often happens that they prejudice cooperation and, therefore, harm the interests of people. I hope that the agreements we have signed today on the opening of one more customs post at Bryansk will produce a specific decision on logistics and make it easier for our producers to export these products to the Russian market.

I’d like to note that we have better terms for exporting not only wine but also vegetables and fruit, and I’d like to thank you for that although this is a natural approach, if you will – barriers impede economic relations and must be removed.

Now a few words about the Customs Union. The Republic of Moldova is a CIS member. We have joined the agreement on a free trade zone in the CIS and adopted a relevant decision in the Government. This agreement will be ratified at the first meetings of the autumn-winter session of our parliament. We will continue deepening our relations in this format.

Of course, life should determine… And I can only repeat that our actions should reflect our national interests.

Question: I have a question to both prime ministers. It is no secret that Moldova is seeking lower prices on Russian gas and wants to sign a long-term contract. At the same time, Russia is concerned over Moldova’s involvement in the EU second and third energy package. Was the price of gas the main issue at today’s talks or have you already found some mutually acceptable decision and the contract may be concluded before the end of the year? Thank you.

Dmitry Medvedev: I don’t think it is an “either-or” question. There is no contradiction here. This issue has become the focus of our talks. As for the decision, we are still seeking it. Our Moldovan colleagues must analyse all approaches to this decision. I have made package proposals to our partners and discussed them intensively with Mr Filat.  Naturally, I was absolutely straight in citing all our arguments that also concern the EU energy packages you’ve mentioned. I said we have very good relations with the European Union – both Russia and Moldova. Our trade with the EU is enormous and we want to create a visa-free space with it. Yet, we have differences on energy policy, particularly these energy packages. Regrettably, the rules governing these packages and their practical usage prejudice the interests of the Russian Federation and Russian companies, including Gazprom.

Therefore, in adopting comprehensive energy decisions we have to consider membership in relevant international organisations, including the Treaty on Establishing the Energy Community. I have told my counterpart about this in absolutely clear terms.

As for the future, we have made our proposals. I hope our Moldovan friends will appreciate them and let us know what they think about them. So, we are looking forward to their answer.

Vladimir Filat: Thank you. It would be very easy if, in speaking about energy cooperation, we would have concentrated just on gas prices. As for the second and third energy packages, it is not that this problem is too complicated but it requires a comprehensive approach. This problem also concerns our debt, mostly from gas consumption in the republic’s left-bank districts and the Transnistria region. This issue covers deadlines, gas supply terms, transit etc. Importantly, we don’t hush up these problems but rather talk about them.

I hope we will reach an agreement in principle before long and get closer to signing an intergovernmental energy contract that should lay the foundation for signing a new contract on Russian gas supplies and resolving all energy issues. I hope we will not merely discuss these problems but will find ways of resolving them – at any rate we have agreed to do this.

Dmitry Medvedev: We are bound to find solutions to these problems if only because we are closely-knit states. The question is how quickly we will reach them and on what terms. Thank you very much. Is that all?

Response: Yes.

Dmitry Medvedev: Thanks to all of you.

Vladimir Filat: Thank you.