Vladimir Putin: Mr Yanukovich,
I am very pleased to see you. Just days ago I spoke with Mr Kuchma about the very problem that has brought you to Moscow.
I think today we will talk not just about agriculture and the grain issue, but also about other areas of our cooperation. In any case, the President said that he has given you the authority to discuss the whole range of questions that are of interest to both Russia and Ukraine.
As for the grain question, we are aware that Ukraine is facing certain difficulties. There is nothing unusual in this, and we know that the unfavourable weather conditions have led to this rather complicated situation arising in other European countries, too. But, as is the tradition among good friends and neighbours, almost relatives, really, we will do what we can to give our support and to help Ukraine.
As the President requested, we are prepared to deliver the necessary volume of grain supplies. Of course, there is the question of conditions and prices. We know that, unfortunately, the grain prices in Ukraine at the moment can hardly be called normal. It is really more of a speculative price, and is almost double that of the domestic grain price on the Russian market.
We do not yet have a clear picture of our harvest results for this year, but overall, despite the difficulties faced by a number of regions in European Russia, the forecasts are good, and we will be able to supply Ukraine with the amount of grain it needs.
As for conditions and the price, I hope that you will settle these questions with the Russian Government, and that the price will be acceptable for Ukraine, and, of course, that it will not be a speculative price like what we are currently seeing on the Ukrainian market.
But we could also resolve this question under different conditions. We could consider it as a loan to be repaid in kind, for example. Given that Ukraine has been a major grain producer over recent years, you could pay us back next year with the same amount of grain, though at a certain interest rate, naturally, so that there’s no loss involved.
Overall, we are willing to be very flexible in finding a solution to this problem, and in working out the conditions that will be most acceptable to you.
(following Viktor Yanukovich’s words)
I repeat that in many western European countries the situation is no better. What can we do? Agriculture is a sector that unfortunately is very dependent on natural factors.
As for finding the time to meet you, as you can see, not only did we find the time, but we have also come up with the grain quite fast. We have been able to build up state grain reserves over recent years, something that Russia had been absolutely unable to do over the previous decades. Last year we exported around 17 million tons of grain and still had enough left over for the state reserves.
I know that after Moscow you plan to visit Kazakhstan. Mr Nazarbayev will tell you his decision himself. I spoke with him just recently on the phone. We keep in regular contact. He is expecting you, and I am sure you will also find support there.