V.Putin: Dear Leonid Danilovich!
Dear Viktor Fyodorovich!
Dear meeting participants!
I am very glad to have the opportunity to take part in the work of such an impressive forum of Ukrainian and Russian entrepreneurs.
Our open, business-like and trusting dialogue has already become a good tradition, and it has shown that it is in demand and effective. As you will recall, we already met several times in 2000. There was a meeting in Moscow. We met in December 2001 at the business forum in Khar’kov. Representatives of Russian and Ukrainian business circles were also present at many of our meeting with the Ukrainian President.
It is cooperation between the business communities of both countries and your activity that in many ways determine the practical realisation of Russian-Ukrainian trade and economic partnership. I am certain that the interests of private business must be taken into account in developing key projects of Russian-Ukrainian business cooperation. In fact, without this no major undertaking is possible. We intend to continue to provide political and organisational support to joint business projects. Above all in such significant areas for us such as energy, the military and industrial complex and aircraft construction. Leonid Danilovich has already mentioned space, transport infrastructure, metallurgy, machine construction, and the banking sphere.
Even more so as the macroeconomic situation in our countries is quite favourable, and the business climate is gradually improving. According to a preliminary evaluation, in the first five months of this year the growth rate of GDP in Russia, as you know, came to 7.3%. Industrial production increased by 7%, and investment in primary capital by 12.4%. Economic activity is accompanied by an expansion of the domestic market, and also the growth in the real income of the population, which is almost 10%, I repeat, in real terms.
A clear positive dynamic can also be seen in the development of the Ukrainian economy and the social sphere. We in Russia are truly happy at the success of our partners and friends. And we believe that the current development is to a large extent thanks to the leadership of the country, Ukrainian President Leonid Danilovich Kuchma, and Prime Minister Viktor Fyodorovich Yanukovich.
Recalling the course of discussion at previous meetings, I would like to mention that today the tasks facing us are different than before. Previously one of our main concerns was to stop a decline in Russian-Ukrainian trade and economic cooperation.
Today the situation has fundamentally changed. Mutual trade turnover in January-May 2004 grew by almost 40% — the Ukrainian President has already talked about this today — and came to around $6 million.
I would also note that the volume of Ukrainian export to Russia has almost doubled. Investment cooperation is also growing.
Russian capital investments have breathed new life into many major Ukrainian enterprises. There is a number of examples of fruitful cooperation between Russian and Ukrainian companies in the area of telecommunications, food industry, retail trade, construction, and production of aviation equipment. We know and hear about the differences in assessments of the opportunities for business activity in Ukraine. Russian experience shows that these opportunities exist. They are growing, and conditions for cooperation are improving. This year alone, plans for investment projects with Russian participation which have already been partially realised come to around $750-$800 million.
Business partnership between Russia and Ukraine has enormous significance not just for major corporations, but also for small and medium business, interregional and border ties. It is thanks to these sectors that our cooperation can be diversified, and its base expanded. I think that it would be useful for us to exchange opinions on how to increase the number of small and medium enterprises in our countries, including joint enterprises.
I am certain that success in our economic affairs will in many ways depend on energetic and consistent formation of the Common economic space. This new integration model is capable of increasing effectiveness, which means increasing the competitiveness of our national economies. This will be achieved by free movement of goods, services, capital and workforce, and also the formation of a free trade zone. I am certain that systematic realisation of this large-scale project is in the interests of our countries and our peoples.
I think that you will also agree that we – partners and neighbours – need to profoundly analyse the current economic situation in the world. We need to find balanced approaches to the integration of the Russian and Ukrainian economies into the international system of economic ties. This will make it possible to more clearly define the priorities of Russian and Ukrainian business on the domestic and foreign markets, and assess the prospects for Russia and Ukraine joining the WTO. And also, if possible, to agree on a schedule for moving towards membership of this organisation, taking into account our multilateral and bilateral plans on the free trade zone.
It is also important to coordinate our methods in relation to the expansion of the European Union. It is important not just to maintain economic relations with the countries which have traditionally worked closely with Russia and Ukraine, but to give them a new impetus. And our business communitiesplay a major and very important role in solving this task.
In conclusion, I would like to wish the forum productive work. And good health to all those present.
Thank you very much for your attention.