President of Russia Dmitry Medvedev: Ladies and gentlemen! Dear friends!
I think it is evident to everyone that this visit by the President of Bulgaria and the talks being held add momentum to the development of multilateral and multidimensional ties between our nations, the development of cooperation between our governments, and the reinforcement of the ties between our people.
Most important, of course, is not the signing ceremony, although that is quite important as well (these are the agreements that will strengthen our cooperation), but rather, the very reason why this visit took place. I am referring to the beginning of the Year of Bulgaria in our country.
Today, President Georgi Parvanov and I will participate in this festive event. It is a great event. Last year was the Year of Russia in Bulgaria. Reciprocal implementation of such projects helps develop all sorts of various, wide-reaching ties between our countries, it includes exhibitions, theatrical presentations, and cooperation between businesses in our countries. That is why this is a very good reason to synchronise watches and start to bring about more active development of cooperation between our countries.
At the same time, I would like to note that over the last few years a lot has been done to develop bilateral cooperation between our nations. Many different kinds of large projects, as well as, perhaps, smaller projects, are evidence of the fact that that we now have quite a high level of turnover in sales.
Last year, the turnover was above 5 billion dollars; currently, Russia occupies first place in terms of trade exports into Bulgaria, and forth in terms of turnover. We are happy about these figures, although as always, there is room for improvement in developing cooperation, in further accelerating the rate of this cooperation, in increasing turnover volume, and increasing sales transactions.
Today, Mr President and I spoke about a variety of issues. Discussions will continue over the course of other events. We spoke about the positive events of the recent period, and we spoke about problems.
Naturally, we could not avoid talking about cooperation in energy and the lessons of the so-called gas crisis. Our exchange of opinions on this topic was very open and constructive, and we discussed ways to prevent these sorts of problems in the future.
I talked about two methods for preventing these kinds of problems with my colleague, the President of Bulgaria. The first method is to develop a foundation of international laws that would promote eliminating possible problems, and preventing the risks linked to transit countries and a lack of regulation on certain issues. I think that we can continue to work in this direction — by that, I mean the upcoming energy conference that will take place in Bulgaria.
The second method, without a doubt, is diversifying deliveries and opening new routes so that gas and other energy sources can be delivered to consumers without obstacles. We have been working on this for a long time. This means, first and foremost, accelerating work on the “Southern Stream,” and, perhaps, increasing the capacity of that pipeline.
We spoke about moving on from the phase of agreeing on project documentation to the phase of direct work of constructing projects more quickly. I think that the corresponding departments within our governments – the ministries of energy and companies that deal with energy – will gain additional momentum from the outcomes of our work today, the outcomes of what we discussed with Mr President.
We spoke about eliminating a range of possible annoyances in this area, and we spoke about creating full-fledged and direct cooperation between Gazprom and Bulgargaz under a new arrangement. Our companies will receive these kinds of mandates from us and begin to implement the corresponding actions and ideas.
I think that this topic will remain very important and, of course, will serve as a basis for our cooperation and our work together for years to come. We also discussed other joint projects in the field of energy (this includes the construction of the “Burgas-Aleksandropolis” oil pipeline, and construction of the “Belene” nuclear power plant) and, of course, agreed that their implementation would create additional opportunities for economic and technological cooperation between Russia and Bulgaria, as well as the European Union overall.
This year will not be easy, and we must think about how our economies will work and deal with the effects of the global financial crisis. In all probability, we still have some very serious challenges ahead of us. And in these circumstances, fostering stable economic relations and equal partnership is one of the approaches to overcoming the difficulties that our countries’ economies and people are facing. There is an increase in the value of these kinds of special economic relations, which will link our nations at a time of crisis and difficulty for everyone around the world.
We also discussed a range of international and regional problems and spoke about the need for overall safety measures in Europe as a continent that is our common home. I also expressed this idea last year as President of the Russian Federation, meaning that it should happen within the format of a broad pan-European treaty. And I am glad that our European partners are ready to discuss this topic, because the current formats providing security in Europe are not exclusive and are not, in our view, entirely sufficient.
We must think about the future, about how we can make Europe secure, and how to create a safe basis for development in European countries.
In conclusion, I would like to once again thank Mr President for our constructive and friendly dialogue. Our positions on a significant number of problems correspond, and that is a solid basis for developing our relations in the future on the basis of the history that binds our people.
Thank you. Mr President, please, now I give you the stage.
President of Bulgaria Georgi Parvanov (translated from Russian): Mr President! Ladies and Gentlemen!
I would like to express my satisfaction regarding the talks we just had. The reason is known to all of us, and it is a lovely and emotional reason: this year is the Year of Bulgaria in Russia, after a very strong and successful Year of Russia in Bulgaria.
We have a very serious programme. Russian viewers and admirers of fine art will be able to acquaint themselves with achievements in Bulgarian culture and art, not only in Moscow, but in a range of Russian regions as well.
I am glad that we have signed an agreement between the news agencies in our countries; this serves as a sign to other media to engage in partnerships in order to achieve a more thorough, authentic, and clear reflection of events in both countries.
A year ago, I estimated that relations between Bulgaria and the Russian Federation are currently at their highest level in all the years of the transition period. And what is happening today during our talks confirms my appraisal.
Yes, a shadow was cast on our relations by the gas crisis. But we demonstrated that we are capable of looking this problem in the eyes, as well as searching for and finding concrete solutions through sincere discussions that take into account national interests and mutual interests – solutions that also consider international interests, particularly European interests. That is why I feel that the idea of seeking out new international parameters, agreements relating to the system of energy security, should be the subject of active work and active talks. And the Bulgarian side will do everything it can to prepare for the energy forum that will take place in our country in April of this year. I do not think that there is any other forum of this kind, bringing together supplier countries, transit countries, and consumers of natural gas. This forum will be a place where we can honestly and sincerely talk about our views and hold a positive discussion.
The Bulgarian side is working actively on the topic of diversification. We will be active in implementing the “Southern Stream,” and in seeking out solutions for the high-priority European “Nabucco” project. I am happy that during our talks with Mr Medvedev, talks are also taking place between experts – managers of energy companies, namely, Gazprom and Bulgargaz, because there are legal and technical issues that we must overcome in the upcoming days and weeks, in order to accelerate the implementation of this project.
The third set of issues relating to the gas sector has to do with my country. In particular, we are bringing up the issue of compensation for damage resulting from the gas crisis, as well as the issue of seeking out new strategic parameters in our relations, including through the development of a new kind of agreement which, I hope, will help us to eliminate intermediaries who, to some degree or another, burden our relations in this sphere.
We had very serious discussions on issues regarding the construction of the Belene nuclear power plant, because we must move on to the next quality level, which assumes preparation and signing of annexes five, six, and seven at an accelerated rate, in order to move on to concrete work on this strategic project for our energy security.
I would like to express my satisfaction with the fact that in the last year, we resolved the question of debt politically, and now we have also resolved it in a purely juridical way. I would like to express my gratitude to Russia’s government for the fact that it is resolved according to an outline that was suggested by the Bulgarian side, without any kind of discount in transitioning from a goods-based form of payment to monetary payment.
I am satisfied that we have tangibly begun the process of returning Bulgarian documents, Bulgarian archives that were taken to the Soviet Union during the Second World War. I did not have time to look at the folder that I received from President Medvedev, but officials in the state archives reported that it contains very interesting documents, including correspondence documents from the Royal Secret Service. I am certain that this will garner significant, justified interest in Bulgarian society. This is a serious moral gesture, which we appreciate greatly.
I am happy that presentations by individual ministers confirmed a readiness to sign an agreement on social security. The ceremony itself will occur at the end of February; this is another piece of news that will surely bring happiness to many people in Bulgaria, who await this important document.
It was also announced that we are nearing the end of our work on a ferry line between Varna and the Caucasus, which is very important in accelerating the search for concrete solutions in the economic sphere.
I will end my speech without talking about the details of our economic relations, because that will be the topic of my presentation tomorrow, when I will address both the Bulgarian business community and Russian business entities. I would just like to say that the volume is impressive: a commodity exchange figure of over 5.5 billion. But all of this has been achieved in recent years, mainly because of an increase in fuel prices. That is why I would like, ladies and gentlemen, for us to achieve maximum diversity in the structure of the commodity exchange itself. And I hope, through the efforts of ministers and Bulgarian businessmen, to convince our friends in Russia that there are good reasons to invest money in Bulgaria, the country offering the most advantageous investment climate in the European Union. This is not my opinion, but rather, the opinion of world agents who are making similar assessments.
Question (Bulgarian National Television): It seems that you discussed issues of compensating Bulgaria for the gas crisis. Did you reach a mutual understanding, and overall, what specific compensation do you foresee?
And a second question. Dmitry Anatolyevich, you have said several times, also in interviews with Bulgarian television, that Russia does not want intermediaries for trading gas. After today’s talks, can you confirm this in regard to Bulgaria? And in what time can we expect concrete decisions?
Georgi Parvanov: Ladies and gentlemen!
As I said before, at the talks the Bulgarian side brought up the issue of compensation. Of course I hope that you do not expect the presidents to discuss specific figures or concrete parameters at this level, before having received evaluations from experts and corresponding entities who are working on these issues.
I am happy that on many levels, including the highest level here in Moscow, I was met with an understanding of the undisputed fact that Bulgaria is the country that underwent the greatest hardship as a result of the gas crisis, and it is imperative to seek new solutions to cope with damage from the crisis. At the same time, we need strategic, long-term solutions that would lead to the prevention of a new crisis, in order to guarantee that Bulgaria will have greater access to these kinds of resources. I must admit that in the upcoming years we will see more and more situations of deficits in natural gas supplies. That is why it is imperative that we find new sources and new parameters for agreements today, including (and I would like to re-emphasize this) through the exclusion of links that we regard to be intermediaries. Other points of view also exist on this issue, but as far as we are concerned, intermediaries are unnecessary.
Dmitry Medvedev: I will also say a few words on the topic of gas, which has indeed become very complicated in recent times. Bulgaria really is one of the countries that suffered the most, and we are very much saddened by this fact. Today, we discussed the prevention of such problems in the future. I already said today, during my first presentation, that I see two paths here, two main directions. One is through international legislative mechanisms, which will create opportunities to lower risks and to ensure suitable fulfilment of duties by transit countries. This could also occur through international conferences on energy. Furthermore, I have already spoken about this, and would like to say again here, that Russia is not satisfied with current energy conventions. The energy charter does not resolve the problems, which means that we must consider something more fundamental, something more acceptable to vendor countries, importers, and consumers. Their interests must be harmonized. We cannot have one-sided regulation, which would be favourable to either one category of countries or to another.
Another immediate issue in preventing similar problems is the diversification of supply routes. Here, of course, we will be working with our Bulgarian partners.
As for this specific situation, it is, of course, at the talks between our groups, by which I mean Gazprom and Bulgargaz.
You are aware of the Russian Federation’s position. We feel that ultimate legal responsibility for the problem that occurred lies with the Ukrainian side, so it should be the focal point for seeking compensation of material losses. We are dealing with our Ukrainian partners. The fact that we are now using a fundamentally different framework for deliveries, as well as the fact that our Ukrainian partners and the Ukrainian side has switched over to European prices, is already a reasonable pledge and guarantee that at the very least, we will avoid this kind of disagreement in the future. At the same time, naturally, we will be monitoring the fulfilment of the agreement by the Ukrainian side exceedingly closely.
The issue of intermediaries in the sphere of gas is always important and complicated. I can tell you that overall, the Russian side’s position is as follows: we do not need any intermediaries anywhere. But every country has its own case history. Ukraine had that kind of case history. At this time, we have departed from the practice of using intermediaries in delivering gas to Ukraine. There is also a case history of this issue in Bulgaria. Currently, there is an intermediary working with Bulgaria. I feel that we could also work directly, but in order to enter that kind of arrangement, willingness and energy must be demonstrated by both sides, for the very reason that these intermediaries have been working for quite a long time. And before we begin working in a new way, we must examine the entirety of the relations, ties, and subjects that have come up before. But I emphasize once again that the Russian side is willing to work in either way. We are willing to work directly such as to make our Bulgarian partners comfortable, and in order for consumers’ economic interests not to suffer.
This issue will be discussed by companies, by Gazprom, and by Bulgargaz. Corresponding instructions have been given to our companies by the presidents of both countries, that is, by my colleague Mr Parvanov and me.
Question (Interfax Agency): A question for Mr Parvanov.
You confirmed your interest in implementing the “Southern Stream” project. Is Bulgaria currently intent on bolstering work on this project? Is there a sufficient legal foundation for it, and what needs to be done first?
Georgi Parvanov: I must tell you that Bulgaria continues to be an active participant in the implementation of “Southern Stream.” One additional thing that is important to recall is the presence of specific legal and technical issues. For example, the issue of what type of gas transmission network we will use, and what route will be selected for the pipeline that will transverse Bulgaria. The issue is not only technical, because we have an agreement regarding the gas transmission network that exists in Bulgaria.
Second – Bulgaria must participate in active work done by all the countries that are a part of this project. We would like to hold joint talks with all countries that demonstrate interest or participate in the implementation of this project.
And third – we are ready to start working as soon as all of these problems are resolved and overcome through concrete talks between Gazprom and Bulgargaz, together with work in all other countries. We will begin the construction of a new pipeline when we are certain that the Serbian side will be constructing exactly the same kind of pipeline; meaning, this work needs to be synchronized. We will be taking all the necessary steps toward this kind of cooperation.