Guy Verhofstadt (translated from Russian): President Putin, gentlemen, we are glad to see you at this press conference. President Putin is not visiting Belgium for the first time. I can tell you that our meetings have taken place almost annually. We held negotiations in 2001, 2002, and 2003. I am proud that today the President of Russia will participate in the opening of the exhibition ”Europalia-Russia 2005“.
Regarding the questions that were discussed today, first of all we addressed bilateral issues and Russian-Belgian relations, after which we talked about cooperation in international organizations and especially concerning the European Union. An interesting year awaits us. In 2006 Russia will host the G8 and the Council of Europe, and Belgium will have the presidency of the OSCE.
Regarding the concrete results of our work today, as you saw, we signed a Russian-Belgian Joint Action Programme for the next three years. It is already the fourth such programme, but it is the first time it is signed for three years. In this programme we have undertaken to develop political dialogue and cooperation in the fields of science, culture, and the economy. The first session of the joint committee to implement this programme will take place on December 20, 2005.
We also discussed a number of concrete projects and first of all, increased cooperation between Antwerp and Russia in the field of diamond processing. The next project is cooperation in the energy and gas sectors and the possibility of closer cooperation between Russian companies which are active in this sector in the Belgian market, and Belgium. We also discussed the possibility of turning Belgium into the centre of Western European gas distribution networks.
I can also tell you that in 2006, under the auspices of the Crown Prince, Belgium will send a mission of its business representatives to Russia.
Finally, we discussed issues concerning Belgium's OSCE presidency in 2006. I want to emphasise at once that Belgium intends to play the role of ”fair broker“ in settling conflict situations in the territory of the former Soviet Union. I can tell you at once that we are going to use all possible means to help the parties come to a mutually acceptable decision.
President Vladimir Putin: Dear ladies and gentlemen, first of all I would like to thank his majesty King Albert II for his invitation. The atmosphere of the visit organised by our Belgian colleagues is warm, frank, and encouraging for the development of friendly relations. It reflects the momentum which has characterised the development of bilateral Russian-Belgian relations. My colleagues and I noticed not only His Majesty's familiarity with the development of bilateral ties, but his obvious interest in founding a rich tradition of cooperation and mutual understanding, developing our cultural and educational relations, the ties and dialogue between our peoples, and in creating good preconditions as a base for economic ties.
Of course, we will do all we can so that next year's visit of Belgian business representatives will take place at the very highest level and meet with success.
We had a very detailed conversation with the Prime Minister and his colleagues. I completely agree with his portrayal of the Joint Action Programme, designed to take place over the next three years. Last year, our bilateral trade amounted to three billion, and in the first half of the present year, it is already two billion USD. Just in the last year there has been an increase of 34 percent. Today we spoke about very concrete matters, and it was natural that we start with cooperation in the energy sector. Around a third of all oil products imported into Belgium are of Russian origin. This is either direct deliveries or through intermediaries. We note and welcome our Belgian colleagues' interest in expanding cooperation in the gas sector. Gazprom is agreeing with its Belgian partners on the construction of a major gas repository. And if this product is implemented, it will certainly become an important element of the big Northern European Gas Pipeline project. This is because gas in the repository can enter the pipeline system and be used both for consumers in Belgium, and for subsequent deliveries to other European countries, including through constructing additional gas distribution networks.
The Belgian jewellery industry is one of the largest consumers of Russian diamonds. Today we discussed this problem as well. We know our partners are interested in this sphere, and intend to expand it together with cooperation in high-tech branches, metallurgy, chemistry, and manufacturing equipment for the food industry.
We managed to touch on international issues, including interaction within international organizations, in particular the OSCE and, of course, the European Union.
We can rightly call the festival ”Europalia-Russia 2005“ a major event in the cultural life of our countries and in Europe as a whole. Within this festival there will be performances by leading Russian ballet and musical companies and around ten major exhibitions will be opened. I am convinced that the festival will not only allow us to take a step towards making our peoples closer, but also in forming a common European cultural space.
Question: I understood that a significant part of your negotiations was concentrated on energy questions, in particular the Northern European Pipeline. Please say whether or not Belgium is ready to participate in financing this project and under which conditions?
And another one. President Putin said that today Russia covers a third of the Belgian market for oil products. Does Russia plan to expand its exports to Belgium, and which companies will do this?
Guy Verhofstadt: We will discuss this question. And of course, we will be engaged in the development of the Zeebrugge Terminal.
Vladimir Putin: First of all I would like to say that participants in the process do not need to contribute additional financial resources in order to implement the Northern European Gas Pipeline project. They have the necessary resources. But nevertheless, we are interested in expanding the number of participants as it will make the project more balanced, more reliable, and more stable. It will obviously increase Europe’s energy security by diversifying transport possibilities and reducing the end cost for natural gas. Today, not only Germany but many other European countries are very interested in participating in this project. These include French, Dutch and British companies. As I have already said, Gazprom has agreed with Belgian partners to construct a gas repository. And I repeat that gas should come through the Northern European Pipeline to this storage facility. I would like to emphasise one more time that we do not intend to harm anything or anyone. We are simply proceeding from critical energy needs in Europe to create favourable conditions for our own economic development.
Regarding the presence of Russian companies in the Belgian market, you asked what steps Russia will take. Russia will not take any steps. In Russia, almost all oil companies are privatized. We see our task as creating the conditions for the development of the energy sector in Russia itself, providing necessary quantities of oil and oil products to the domestic market, and creating opportunities for companies to increase extraction and their exports abroad. So the question of who will extract and in what volume first of all concerns economic actors. Over the last years we increased both extraction and sales volumes. And we aspire to continue to do so.
Question: Western Europe is becoming more and more dependent on deliveries of Russian gas and oil. Can you guarantee that Russia will never use this dependence to put pressure on Western European countries?
Vladimir Putin: I can say that today, very little of our gas reaches the Belgian market. There are small deliveries but, since they go through intermediaries, they are imperceptible. Basic knowledge of this sector shows that the more abundant a product is, the cheaper its price, or anyways the more stable. For example Finland, a country in the European Union, receives about 90 percent of its natural gas requirements from Russian deliveries. And all are pleased with the situation.
I want to tell you about yet another very important element in our cooperation with the countries of the European Union in this sector. For the first time, we made the following strategic decision. We are going to increase our gas deliveries to Europe by 60 billion cubic metres over the next few years. The contracts are already signed. But most importantly, we agreed to have some Western European companies participate in the companies that extract gas from the Russian Federation's territory. Together with them we will build a pipeline under the Baltic Sea. In turn, they will allow us into the companies which are engaged in gas and electricity distribution on their countries' territory. This way, our European partners will see how extraction takes place in Russia, and participate directly in the process, while our companies will participate directly in the distribution. As such, we will create a stable, balanced system of interests for a long time. Besides this, we know about the prospects for gas extraction in traditionally gas-rich countries of Europe such as Great Britain and Norway. Extraction there is falling. We want to act very much in cooperation with our partners. We are presently negotiating joint activities with many companies—British, Dutch—that will eventually increase Europe's energy security. With this, such questions will not arise anymore.
Guy Verhofstadt: I can add that our stated purpose is providing additional deliveries of gas, including Russian gas, to the Belgian market. The ultimate goal is to increase competition and therefore to reduce the price. Our plans include creating a gas terminal in Zeerbrugge, in Belgium.