Vladimir Putin arrived in Austria
The President of Russia has arrived in the Republic of Austria on a working visit. He will hold talks with Federal President of Austria Alexander Van der Bellen and Federal Chancellor Sebastian Kurz.
June 5, 2018
14:45
Vienna
Vladimir Putin arrived in Austria.
The talks will cover Russian-Austrian relations in various spheres and key international issues.
The President will also attend a meeting with Russian and Austrian business leaders, who will speak about mutually beneficial trade and economic cooperation, in particular the celebration this year of the 50th anniversary of a large-scale energy project to deliver Soviet natural gas to Europe.
Before going to Austria, Vladimir Putin gave an interview to the Austrian Broadcasting Corporation (ORF).
Interview with China Media Group
Ahead of his visit to People’s Republic of China, the President of Russia answered questions from President of China Media Group Shen Haixiong.
June 6, 2018
07:00
Moscow
Ahead of his visit to People’s Republic of China, the President of Russia answered questions from President of China Media Group Shen Haixiong.
President of China Media Group Shen Haixiong: Mr President, thank you very much for accepting China Media Group’s request for this interview. On May 7, you were inaugurated as President of Russia. We broadcasted the ceremony online. I watched the entire broadcast, about 45 minutes, and was deeply moved. Please tell me how is your fourth speech different from the previous ones? What were your feelings?
Vladimir Putin: First of all, I would like to thank you for your interest in Russia and for your decision to meet here today. I would like to take this opportunity to extend my best wishes to the Chinese people. We know that we have many friends in China. And the fact that you watched the inauguration online shows that the ceremony, and Russia in general, are of interest to the Chinese. I would like to wish the Chinese people all the best, happiness and prosperity for every Chinese family.
Speaking about the new term as President of the Russian Federation, if you were watching the ceremony, you probably heard what I was talking about. Russia’s continued progressive development as well as ensuring economic growth, introducing more innovations, developing infrastructure, healthcare and education and, of course, providing security are all our priorities, and when I say “our,” I refer to myself and my team.
We will focus on positioning Russia on the global stage as a country that adheres to the principles of international law, respects its partners’ interests and, of course, will protect its own interests.
In this sense, I would like to say that we pay great attention to cooperating with our traditional and reliable partners, allies and friends. The People’s Republic of China is, of course, among them.
Shen Haixiong: Thank you.
I noted that, starting wi your Address to the Federal Assembly, you often mention the Russian dream. As you may know, the Chinese people are also trying to realise the Chinese dream introduced by President Xi Jinping. In what aspects, in your opinion, are these dreams similar and different?
Vladimir Putin: Russia and China are neighbours. We have been interacting for centuries, and our historical ties and roots go very deep. It is not by chance that in recent decades, as neighbours, we have built a relationship that probably cannot be compared with anything in the world. It is truly built on consideration of each other’s interests.
Look, in 2001, we signed the Treaty of Friendship and Neighborliness, but this treaty is only the foundation we have built our current relationship on. With every year passing, we add new paint and new floors to that building; it is growing taller and stronger. This is no accident: it means that we have many things in common, including our approaches to building our states and to our people, and this is very important.
Take what President Xi Jinping said at the latest party congress. What lies at the foundation of everything he said? The aspiration to improve people’s lives. This goal may be achieved by different means, but it is the same for us; Russia cannot have any other goal but improving its citizens’ lives. It informs the way we think about how to build Russian-Chinese relations to achieve these goals, to ensure our external security and work together to create a new kind of economy based on the latest innovations, the digital economy, advances in genetics and the best ways to manage society, the state and the economy itself. So we have many things in common. And I believe that we will succeed if we join our efforts.
Shen Haixiong: Thank you very much.
Last year you met with the leaders of China more than with those of any other country. You met with Xi Jinping five times. You also awarded President Xi Jinping the Order of St Andrew, the highest award in Russia. Please share your impressions of your interactions with President Xi Jinping.
Vladimir Putin: You know, I cannot share some things, as these are personal observations and a personal relationship. But President Xi Jinping is probably the only world leader I have celebrated one of my birthdays with. Either because I did not have that kind of relationship or because schedules would not permit it, I had never celebrated a birthday with any of my foreign colleagues before. But I did with President Xi Jinping. And then (I already spoke about it publicly, there is no secret here), it was a very simple event. I will be frank, I do not know, he probably will not be angry with me if I share that we drank a shot of vodka and just cut up some sausage. We just did it at the end of a workday. But I want to start with this, if we are talking about personal characteristics.
He is a very accessible and sincere person. But at the same time, he is a very reliable partner. I can be sure that if I reach an agreement with President Xi Jinping, we will both always strive to meet our obligations. This is the first thing.
Second. Like many leaders of other countries – this, I think, unites all of us – in his work, he strives for the best result for the benefit of every person in his own country.
He is a good analyst and it is interesting to discuss world problems and economic issues with him. Therefore, he is a very comfortable partner for me and a good and reliable friend.
Shen Haixiong: Thank you. I share your sentiments.
In several days you will leave for the Chinese city of Qingdao to take part in the SCO summit. You will also pay an official visit to China. What do you think can be done to make the organisation’s work more effective and positive following its expansion?
Vladimir Putin: The SCO was initially established as a relatively modest organisation to deal with issues between Russia, China and a number of former Soviet republics.
Let me repeat, our goals were relatively modest, but in the process of gradually addressing them we realised that we have many things in common, in the sense that we can achieve more significant results than simply frontier matters. And the SCO began to develop. After India and Pakistan were admitted to the SCO, it became clear that comprehensive work should begin, begin in China, and also that the SCO has become a global organisation.
This is an obvious fact, because our countries account for a quarter of the global GDP, 43 percent of the world’s population and 23 percent of the planet’s total area. The resources are immense. Considering the growth dynamics in Asia, in China and India, we will try to give a boost to Russia’s economy and support the dynamics we need.
All of this, together with our military capabilities, constitutes a huge force that we, of course, will not use for confrontation but for establishing the necessary conditions for multifaceted cooperation between our countries and with other countries as well, wherever they are on the globe.
Of course, joint efforts of such a powerful group will be an important factor for our own development, and will also influence the international situation. I am confident that this influence will be positive.
Shen Haixiong: Thank you.
Qingdao is a beautiful coastal city famous for its seafood and beer. Do you plan to try it?
Vladimir Putin: Yes, I would like to. I like both seafood and beer, although I try not to drink often, but I would like to taste it and will gladly do so.
Shen Haixiong: Thank you.
This year, the Belt and Road Initiative marks its fifth anniversary. President Xi Jinping said that this initiative aims to build a community of humanity’s common destiny. What do you think about this concept?
Vladimir Putin: We have always supported this idea. President Xi Jinping’s Belt and RoadInitiative has both economic and humanitarian elements. First of all, we are speaking about the economy and the infrastructure. We believe this is a useful, important and promising initiative. It meets our efforts to build the Eurasian Economic Union.
In addition, recently, on May 17, the Eurasian Economic Union and China signed an agreement on economic cooperation. For now, it does not concern lowering tariffs, but other very important issues, such as trade policy, technical regulations and phytosanitary control. In fact, we are making a very important step towards removing the barriers to economic cooperation.
Still, President Xi Jinping’s idea, as we see it, is more global: it aims to develop cooperation with all countries and continents. We have a general idea of Eurasian economic cooperation. I think that all of this adds up and may have a positive outcome. Speaking about the idea’s infrastructure element, let me say that we know about our Chinese partners’ interest in working along the Northern Sea Route.
We welcome it. However, this is not the only area; we have good plans for industrial cooperation and railway infrastructure development as well. These are all powerful and promising areas that will for sure become the foundation of our cooperation.
Today China is Russia’s number one trade partner. Last year, trade reached $87 billion, and this year, the growth in the first four months was the same as during all of last year. This is a very good pace that we must keep up and even increase.
Shen Haixiong: Thank you.
In the published May Executive Orders, great attention is paid to improving living standards and the development of the digital economy. What else can Russia and China do to deepen cooperation in these areas in your opinion?
Vladimir Putin: This is one of the key areas. We know how much attention both President Xi Jinping and the Government of the People's Republic of China pay to the development of modern forms of management and to such promising areas as the digital economy. We believe that this, of course, is closely related to such important areas of the future technological order as robotics and artificial intelligence.
In the modern world, all major discoveries, the most promising discoveries are made at the intersection of sciences. This includes biology, genetics, and other areas that, of course, will make those who succeed in them leaders of world development. And we, not forgetting about our traditional spheres of cooperation, will, of course, strive to join our efforts with our Chinese friends in these key areas of today and especially tomorrow.
We have relevant ideas, plans and some developments of our own. We know that China already has had significant achievements. For example, in the field of the internet of things and digital commerce. However, this will not be enough for successful development in the short term for both China and Russia. We need to develop digital technologies in industry, in infrastructure, in energy, including in the electric power industry, and in alternative types of energy. There we can and need to introduce the latest developments, the latest achievements. If we do this, we will be absolute leaders. We will strive for this.
Shen Haixiong: Thank you.
Despite the fact that everyone is striving for equitable dialogue and cooperation, you now face acute challenges. I mean the sanctions of the Western countries targeting the Russian economy and other pressure. Where will Russian-US relations and Russia's relations with Western countries go from here, in your view?
Vladimir Putin: I look forward to good, positive relations. We are not surprised by any restrictions or sanctions; this does not frighten us and will never force us to abandon our independent, sovereign path of development.
I believe that either Russia will be sovereign, or it will not exist at all. And, of course, the Russian people will always choose the first. I think the Chinese people feel the same. There is no other way for us. But we understand that our partners are trying to limit our development by imposing these restrictions and sanctions.
I have no doubt that this, as lawyers say, is an exercise in futility, and nothing will come of it. This policy primarily hurts those who initiated it. However, I believe that common sense will still prevail, that all illegal restrictions that are harmful to the development of the world economy will be gradually removed, and we will normalise our relations with all partners, including the United States, and other countries that did their bidding and also imposed these sanctions.
By the way, those who, as I said, did the US’s bidding, are beginning to suffer from what the United States is starting to impose on these countries themselves. All this taken together gradually – and I am not gloating or being sarcastic – but it all speaks to the fact that these means cannot be universal, and sooner or later it will become obvious that their use harms everyone, including the initiators of these initiatives. In the end, I hope that our relations will normalise one way or another.
Shen Haixiong: Thank you.
Since the beginning of this year, some positive changes have occurred in some hotbeds such as the Korean Peninsula and Syria. However, the situation remains unclear. What do you think about Russia’s role in resolving these crises and where can Russia and China cooperate on this?
Vladimir Putin: Speaking about the Korean peninsula, our approaches, as diplomats say, are the same or similar. Probably the first. We were the initiators of a roadmap for the settlement process on the Korean Peninsula. Recently, China has done a lot to defuse the situation somewhat. We are very happy to see this and will provide any support we can.
As you know, the Russian Foreign Minister is in North Korea now having talks with its leaders, including on a settlement process.
We can also see that the North Korean leaders have taken unexpected, even for me – I would even say unprecedented – steps to de-escalate the situation. First, they announced that they would stop nuclear testing. In addition, they have already destroyed one of their largest nuclear test sites. Of course, these are all practical steps towards denuclearisation, which is our common final goal.
I can understand the North Korean leadership when they talk about the security guarantees they need for total denuclearisation. How else could it be? There is no other way imaginable, especially after what happened in Libya and Iraq. The North Koreans have not forgotten. So of course, they would demand guarantees. Today it is difficult to say what these guarantees may look like or when they will come into effect. However, we can, and should, move towards this goal: to de-escalate tensions and, ultimately, to denuclearise.
It is a pity that our Western partners, the United States and, unfortunately, South Korea have not stopped their military exercises and maneuvers that do nothing to aid de-escalation. But I still hope that this meeting – a very brave and mature decision US President Donald Trump has made, to have direct contacts with North Korean leader Kim Jong-un – will take place, and we all expect a positive outcome. The roadmap I have mentioned, the Russian-Chinese roadmap, has points on the settlement process in North Korea, the next phase of which is promoting relations between all the counties responsible for this de-escalation.
The next phase is multifaceted cooperation among all stakeholders, first of all, to draft these security guarantees. And, of course, Russia has always proposed this, and it remains on the table: a trilateral economic project between Russia and the northern and southern parts of the Korean Peninsula. Primarily, these would be infrastructure projects, such as railway construction (actually, China could join them) between Russia, North Korea and South Korea. We are talking about pipelines. We can also think about building other energy facilities. There are many opportunities for joint work both in a three-party and four-party format: we only have to move towards them. We will all be eagerly awaiting the outcome of the meeting between US President Donald Trump and the North Korean leader Kim Jong-un and will support it in any way we can.
Shen Haixiong: Thank you.
I have just mentioned our corporation's online projects, such as “Who’s a Fan of Vladimir Putin?” So I have several questions we received from our users. Over 40 million users took part in these events. Now I would like, on behalf of our users, to ask you four questions.
Vladimir Putin: Please do.
Shen Haixiong: The first one. Russia is the host of this year's football World Cup. What kind of results do you think the Russian national team can achieve?
Vladimir Putin: The person who asked this question mentioned that Russia is the host of this tournament. So our main and essential goal, as the host country, is to provide good organisation of the World Cup and make it a real festival for millions of football fans all around the world. This will be our main achievement.
As regards the national team, I have to acknowledge that, sadly, our team has not enjoyed great results lately. But we, all the fans and football lovers in Russia, have high hopes that our team will make a good showing, play a modern, interesting and beautiful style of football, and fight to the finish.
Shen Haixiong: Which team do you think will win?
Vladimir Putin: This is a tough question. There are many contenders. There are Latin American teams – Argentina and Brazil. At previous World Cups, the German team has performed brilliantly, and the Spanish team has played a beautiful brand of football too. There will certainly be other contenders, but only the best will win.
Shen Haixiong: Will you watch the World Cup matches?
Vladimir Putin: Yes, I will. Also, as the President of the host country, I will be attending the opening and closing ceremonies. I will check my schedule. I will attend more matches if I can.
Shen Haixiong: Who is your favourite footballer?
Vladimir Putin: There are footballers whom I consider outstanding and whom I can definitely call my favourite. Lev Yashin among Russian and Soviet players, and Pele among foreign ones. I also like Maradona very much.
Shen Haixiong: Thank you.
All our users know that you love sports. What sports do you currently play? How much time do you spend on it a day?
Vladimir Putin: Every day I spend about 2–2.5 hours doing sports. I go to the gym, I swim, sometimes I get out on the mat, if I have sparring partners, and sometimes I play hockey. Not really play hockey but try to.
Shen Haixiong: In the news, we often see you onboard a fighter jet or a submarine. Our users consider you a super-president. If you were not involved in politics, what would be your profession?
Vladimir Putin: I worked in the intelligence service of the Soviet Union, in the foreign intelligence service of the Soviet Union. I already have a profession. (Laughing.) But I graduated from St Petersburg State University with a degree in law, so I could have worked as a lawyer, but I worked all my life in security agencies and in foreign intelligence in the Soviet Union. Then I worked in the executive authorities in St Petersburg. I enjoyed each of these activities. I think that I really could work as a lawyer.
Shen Haixiong: Thank you.
In 2016, when you participated in the G20 summit in Hangzhou, you brought as a gift a carton of Russian ice cream. Will you bring something this year?
Vladimir Putin: Yes. (Laughing.)
I brought it because President Xi Jinping mentioned that he loves Russian ice cream, so I brought it for him as a gift.
He and I exchange trifles occasionally. But it will ruin the surprise, if I tell you in advance what I will bring him as a gift. It will be a secret between me and you, I will whisper it in your ear later. (Laughing.)
Shen Haixiong: Thank you very much, Mr President, for today's interview. We wish you good luck and success in your fourth term and in hosting the World Cup.
Vladimir Putin: Thank you!
Talks with President of Austria Alexander van der Bellen
Vladimir Putin held talks with Federal President of the Republic of Austria Alexander van der Bellen in Vienna. The two presidents met in the Hofburg Palace in the centre of the Austrian capital.
June 5, 2018
17:30
Vienna
Talks with Federal President of the Republic of Austria Alexander Van der Bellen.The Russian-Austrian consultations were also attended by Aide to the Russian President Yury Ushakov and Adviser to the Federal President of Austria for European and International Affairs Bettina Kirnbauer.
Later, the talks between Vladimir Putin and Alexander van der Bellen continued with participation of the Russian and Austrian delegations.
Following the meeting, Vladimir Putin and Alexander Van der Bellen made statements for the press and answered journalists’ questions.
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News conference following talks with Federal President of the Republic of Austria Alexander Van der Bellen
Federal President of the Republic of Austria Alexander Van der Bellen (retranslated): Mr President,
I am very happy to welcome you here in Vienna. I am especially pleased that President Putin made one of the first foreign trips after his election to Austria, to Vienna.
This was my first meeting with you as the Federal President but many years ago I met with you in the Austrian Parliament. I think I can say that together we found a good foundation for dialogue.
News conference with Federal President of the Republic of Austria Alexander Van der Bellen.Good relations with Russia are important for me not only in the context of European policy but also for personal reasons. Russia played an important role in my family history – my parents spoke Russian with each other and I literally grew up on Russian literature although today this is no more than marginalia.
Russia and Austria have traditionally maintained very good relations that have a centuries-long history. These relations are not only political but also embrace such areas as culture, science, research, and music. For instance, 2018 is the Year of Music. Several days ago Schoenbrunn Palace hosted a wonderful concert in which Anna Netrebko and other performers took part.
One more important example of our cooperation is the joint commission on historical issues that is making a major contribution to facilitating understanding between our countries. And the importance of this commission should not be underrated. Usually or rather very often it is historians that influence the perception of different events by citizens of this or other country. For example, the French certainly write about Napoleon in a somewhat different way than Austrians or Russians.
We are also striving to promote understanding on the ground floor, so to speak – by developing direct contacts between ordinary citizens of our countries. This is why we discussed today the formation of an additional platform for dialogue at the civil society level. The first event opening this dialogue will take place today in Sochi. Ms Kneissl is taking part in its preparation on our behalf.
Of course, Russia is a very important market, including for Austria. Our direct investment in Russia is about seven billion euros, and Russian investment is 3–4 times larger.
Yesterday we marked a special anniversary: 50 years since the agreement on gas supplies from Russia to Austria was signed. The agreement was signed in 1968, between the Soviet Union and Austria back then. This means that Gazprom and OMV have been working together for 50 years. I believe this cooperation over the course of several decades already is mutually beneficial.
At a news conference with Federal President of the Republic of Austria Alexander Van der Bellen.Soon, in less than a month, Austria will take over the Presidency of the EU Council. Unfortunately, I have to say that we live in a time when the tensions around the world are constantly growing. Austria has always tried to contribute to de-escalation, and we will continue to do so in the future.
Unfortunately, the issue of sanctions is very acute today, and, concerning foreign policy, Austria acts in concert with the other countries of the European Union, and will continue to act in concert with them. But at the same time dialogue with Russia has always been extremely important, and not just for Austria, but for the entire European Union.
I always get somewhat confused when I hear people say “Russia and Europe,” because Russia (at least a large part of it) is, of course, part of Europe and not some “foreign element.” We all know well that we can achieve peace in Europe only together with Russia, and a number of regional and global problems can only be resolved with Russia’s involvement.
President Putin and I have discussed various foreign policy issues, such as developments in the “triangle” between the US, Iran and Europe, if you will. I will not take much of your time: President Putin is a much more interesting figure for you than I am.
I am pleased to welcome the entire high-level Russian delegation here in Vienna. Tonight we will perhaps meet once again at the Art History Museum where a very interesting exhibition, Old Masters from the Hermitage, featuring a number of exhibits provided by the Hermitage Museum, will open.
This means that President Putin is not our only guest tonight: the Hermitage will be here for several weeks and months on behalf of the entire Russian nation.
Thank you very much.
President of Russia Vladimir Putin: Mr President, ladies and gentlemen,
First of all, I want to thank President Van der Bellen for the invitation to visit Austria.
The President expressed his determination to expand the entire scope of bilateral relations between Russia and Austria, which I fully support.
We have very good preconditions for that. Russia-Austria relations are based on a tradition of partnership and mutual benefit. We maintain regular contacts at the top level as well as between the ministries, agencies and parliaments of the two countries, between our businesses, representatives of culture, science, education and youth.
At a news conference with Federal President of the Republic of Austria Alexander Van der Bellen.Our mutual trade is growing. Russia-Austria trade turnover grew by 40.5 percent in 2017. The growth rate reached almost 100 percent in the first quarter of this year.
One of the key areas of our bilateral cooperation is energy. Our visit marks the 50thanniversary of the first contract to supply natural gas to Austria from the Soviet Union. Since then, we have exported over 200 billion cubic metres of natural gas to the Austrian market.
Austria has become one of the major – perhaps, one of the most important – transit hubs for Russian gas in Western Europe and plays an important role in ensuring the energy security of the entire European continent.
Overall, this anniversary symbolises the mutually beneficial and time-tested partnership which both our countries intend to continue strengthening.
Russia’s Austrian partners have supported our plans to increase gas supply to European consumers, including as part of Nord Stream 2 and other energy and infrastructure projects. We will by all means continue to discuss this important topic with the Federal Chancellor of Austria.
We discussed with Mr Van der Bellen cultural and humanitarian ties that have been rapidly developing in the past few years. We noted that holding cross events has become regular practice.
The Russia-Austria Year of Tourism was a success in 2017. In 2018 the Year of Music and Cultural Routes is being held. Cross years of youth exchanges, literature and theatre are planned for 2019 and 2020. As the President just said, today we will open the exhibition Old Masters from the Hermitage in the Kunsthistorisches Museum Vienna.
The Federal President and I have agreed to facilitate the implementation of plans on creating a Russia-Austria public forum, the Sochi Dialogue.
We are satisfied with the joint work of Russian and Austrian historians. As members of the relevant Russia-Austria commission, they are making a tangible contribution to the unbiased study of our past and to resisting attempts to revise some complicated periods of European history.
I would like to express special gratitude to the government and people of Austria for the care they show for the burial sites of Soviet soldiers who liberated your country from Nazism.
Naturally, during the talks we exchanged views on a number of international and regional issues and talked about the developments in Ukraine and Syria.
News conference with Federal President of the Republic of Austria Alexander Van der Bellen.In conclusion, I would like to thank Federal President of Austria Alexander Van der Bellen for a constructive and productive meeting that, I am sure, will facilitate progress in the full range of bilateral ties.
We would be happy to see the President in Russia at any time at his convenience.
Thank you very much.
Question: A question for both presidents. It has been emphasised that Russia and Austria are long-time reliable partners, and large mutual investors. You just mentioned the numbers – many billions of dollars, and you talked about a number of projects. Taking into consideration the current international situation, do you think there is potential for further growth in our economic relations, and if so, which areas are most likely to see it?
Alexander Van der Bellen (retranslated): There is still quite a bit of potential. Russia is an immense market with 140 million people. And the way oil and energy prices are progressing, this is also a good benchmark.
In particular, I was impressed: after a setback, if I can put it this way, that trade and direct investment have again grown in the past two years. And the growth was noted in both countries, especially in direct investment.
Vladimir Putin: Indeed, our relations are progressing very well, steadily. In fact, Russia is the second largest investor in Austria, I think, after the Federal Republic of Germany. Russia has invested almost $25 billion in the Austrian economy. Our Austrian partners have invested almost four billion. Over 500 Austrian companies have a presence in the Russian market.
Mr President said that it is a large market with over 140 million people (146 million). But if we consider the Eurasian Economic Union, it has 170 million people, including Kazakhstan, Belarus, Kyrgyzstan and Armenia. It is indeed a large, broad market, and a fast growing one at that. As I have said, our trade is growing at a very good rate.
I am not talking about energy. This is obvious. Thanks to cooperation with the Soviet Union and then with Russia, Austria has become the common European energy hub, which continues to develop very dynamically. In this sense, the role of the Austrian Republic in Europe’s energy industry is significant, large, and it will only increase.
At a news conference with Federal President of the Republic of Austria Alexander Van der Bellen.But we are not limiting ourselves to these areas. We have good prospects in engineering, timber processing, transport and logistics in general. We have adopted a plan on modernising the economy. This includes several fields (up to 20), some of them have already been completed, others are in progress, as they say, and are being implemented.
We have very good prospects. I am confident that they will be realised, and I would very much like to see our work provide an impetus to fulfilling these joint plans.
Question (retranslated): I have a question for Mr Putin.
Mr President, in your conversation with President Alexander Van der Bellen, and the forthcoming conversation with Federal Chancellor Sebastian Kurz, would you like them to create a good atmosphere for lifting the EU sanctions?
Vladimir Putin: Sanctions, any politically motivated restrictions, protectionism – these are all the same thing. They are all ways of resolving political issues and are ultimately not effective at achieving the desired effect. They are harmful for everyone involved –those that initiate them, and those against whom they are used.
I can assure you that Russia has overcome the difficulties linked with these external restrictions. This was not easy for us a few years ago, because at that time we faced a considerable (double) reduction in the prices of our traditional exports. Nevertheless, we have not only preserved macroeconomic stability but also consolidated it.
As you may know, we reduced inflation to a record low in the history of modern Russia – 2.5 percent. We have a minimal unemployment rate – it has already dropped below 5 percent. Our gold and currency reserves are growing.
Our positive foreign trade balance is about $130 billion. Investment in basic capital is growing at the accelerated pace of 4.4 percent. We have reached economic growth – it is very modest so far, but stable.
This is why I say that sanctions are bad both for those that initiate them and those they are against. This is why I think everyone is interested in cancelling them. We are, too.
We realise full well that each EU country finds it difficult to talk about this on an individual basis. I will not talk about the reasons – you know them. But whatever is happening in this area does not prevent us from developing relations with the Republic of Austria. And we will do everything we can to continue developing them in the future and to carry out the plans I have talked about.
Question: My question is primarily for Mr Federal President of Austria concerning natural gas cooperation. Russia has been a reliable supplier of gas to Austria for 50 years. A new agreement is to be signed until 2040.
Meanwhile, Russia was often accused in the past years of using gas as a political weapon. I have the following question: has Austria experienced any external pressure in this area?
Alexander Van der Bellen: The fact is that not only Austria but the whole European Union has been importing gas from Russia and the former Soviet Union. Our experience has been very good.
Recently there has been, let us say, a reproach from some US politicians that EU dependence on Russia in this area is too great. Meanwhile, the fact that US liquefied natural gas is two or three times more expensive than Russian gas is overlooked.
Under such circumstances, there is little sense, from a purely economic view, to replace Russian gas with American LNG. And under such circumstances, I believe that future cooperation between Gazprom and OMV rests on a very solid foundation.
News conference with Federal President of the Republic of Austria Alexander Van der Bellen.Question (retranslated): I have a question to both presidents. There is a grave crisis between the EU and Russia, and there is an impression that Russia is facing the problem of trust. What are you going to do to overcome this? And what will Austria do to stop this problem, to get rid of it?
Vladimir Putin: You mentioned the problem of trust and said that Russia has it. I want to disappoint you: I do not think so. I do not think we have any problem with trust. It is a problem for those who want the situation in Russia to be like that.
We are open and ready to cooperation, we had until recently a whole set of mechanisms and tools of cooperation with Europe you referred to and with united Europe. We used to have dialogue in 20 different areas in the economy, and all that has been practically wrapped up now, and through no fault of ours.
We are not the initiators of curbing this interaction, and we are open and ready for joint work. Slowly, gradually this work is reviving, we can see that. We have consultations and dialogue with Brussels officials in a number of areas, and in my view they are proceeding very constructively, although not quite smoothly. But let me reiterate, not only Russia but also our European friends are interested in restoring full-scale work.
Alexander Van der Bellen (retranslated): I do not have anything to add to that. The issue of trust turns up in politics every now and again. Therefore, there is nothing unusual here; even my personality, in retrospect, may arouse a veracity issue.
I do not see any specific problem regarding Russia but I think it is a matter of correct interpretation of statements or actions. It is quite normal, business as usual, as they say. This is normal working mode. I do not see any crisis of confidence.
See also
Vladimir Putin arrived in Austria
June 5, 2018
See also
Interview with Austrian ORF television channel
June 4, 2018
Visit to Austria
June 5, 2018
Talks with Federal Chancellor of Austria Sebastian Kurz
Vladimir Putin held talks with Federal Chancellor of the Republic of Austria Sebastian Kurz.
June 5, 2018
18:30
Vienna
With Federal Chancellor of the Republic of Austria Sebastian Kurz.
The meeting was attended by Aide to the Russian President Yury Ushakov and Vice Chancellor of Austria Heinz-Christian Strache.
Following the consultations, a number of bilateral documents were signed in the presence of the Russian President and the Austrian Federal Chancellor. The documents signed include a protocol on the avoidance of double taxation of income and capital as well as memorandums of cooperation in innovation and forestry, two agreements between Russian regions and Austrian companies, and the Agreement on Gas Supplies until 2040 between Gazprom Export and OMV Gas Marketing & Trading GmbH.
After that, Vladimir Putin and Sebastian Kurz made press statements.
Earlier in the day, the President of Russia held talks with Federal President of Austria Alexander Van der Bellen.
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Press statements following the talks with Federal Chancellor of the Republic of Austria Sebastian Kurz
Federal Chancellor of the Republic of Austria Sebastian Kurz (retranslated):(In Russian.)Welcome!
Mr Federal President of Austria and Mr President of the Russian Federation Vladimir Putin, ladies and gentlemen, colleagues from the Government, Mr Vice Chancellor and, first of all, Mr President.
Please allow me to cordially welcome you in Austria and sincerely thank you for choosing Austria for your first visit to the European Union after your re-election.
Welcome to Austria!
It is my impression that relations between Austria and Russia have been progressing very well for a long time. We maintained cooperation even in difficult times. Apart from good political cooperation we have very strong economic cooperation.
We are glad that our trade has again increased to 5 billion euros and that Austrian companies have already invested 7 billion euros in Russia. This year we are celebrating the 50th anniversary of gas supplies from Russian to Austria owing to cooperation between Gazprom and OMV. This cooperation was always sustained even in trying times.
Today we signed a memorandum on cooperation in forestry and an agreement for the avoidance of double taxation so as to support our cooperation. Last but not the least, tourism from Russia to Austria is also developing on a large scale. We have recorded 2.1 million overnight stays in Austria.
Observance of human rights is very important for us. Today, we had an opportunity to talk about international issues – how Russia as a superpower is playing a big role in Syria and eastern Ukraine and bears a large responsibility. And we hope Russia will help people finally experience what they have been looking forward to so much – peace.
We spoke today about relations between Russia and Austria. As you know, Austria is an active EU member. On July 1, we will take over the Presidency of the EU Council and will actively participate in the formation of the EU position and EU decisions, including those on sanctions. At the same time we hope that owing to more intensive dialogue the EU and Russia will make progress in their relations.
In addition, we hope that progress will also be achieved in eastern Ukraine and that the Minsk agreements will be implemented. This is the scenario we want for our continent. We are deeply convinced that solely through cooperation and joint actions we can make further progress in relations between the two sides.
Mutual benefit is better than mutual loss. This is why we will continue working to maintain our traditionally good bilateral ties and support them more actively. We will continue working to sustain our good relations with Russia, the UN and the OSCE. We will be making our contribution to finding a decent solution for people that does not rely solely on military force.
Please allow me to thank you again for your visit to Austria, and for the good conversation with the Federal President, the Vice Chancellor and me. I am already looking forward to the exchanges and conversations between representatives of our economies.
President of Russia Vladimir Putin: Mr Federal Chancellor, ladies and gentlemen,
To begin with, I would like to thank the Austrian hosts for the warm welcome and hospitality. Mr Sebastian Kurz and I are already meeting for the second time this year. As in February in Moscow, our talks took place in a constructive and friendly atmosphere and reaffirmed the partner-like, mutually beneficial character of Russia-Austria cooperation.
This is shown by the substantial growth of trade between our countries – last year it went up by 40.5 percent and continues to grow. It doubled in the first quarter of this year. Our visit is timed to the 50th anniversary of the first contract on natural gas supplies from the Soviet Union. During this half century our country has been reliably supplying Austrian consumers with energy resources. Moreover, they are delivered to the markets of other European countries via Austrian territory. And so it is no exaggeration to say that Russia and Austria are jointly making a substantial contribution to the energy security of the whole of Europe.
We are working together to expand energy cooperation. Today our leading energy companies – OMV and Gazprom – signed an agreement on gas supplies until 2040.
The Nord Stream 2 project continues to be carried out. The Federal Chancellor confirmed that the Austrian leaders are positive about it as a strictly economic project.
During the talks, we addressed issues related to increasing mutual investments in industrial and technological cooperation. Russian capital investments, as I already said after the meeting with the President, are nearing $24 billion, while the figure for Austria is approaching four billion.
The Declaration on Partnership for Modernisation, adopted in 2011, is being implemented. As part of it, 28 joint initiatives totalling almost three billion euros are being implemented.
I would like to highlight the major infrastructure project to build a wide-gauge railway line from Kosice in Slovakia to Vienna. It is still in the stage of expert study, but it is now clear that in case of its implementation, cargo transportation between Europe and Asia via the Trans-Siberian Railway will increase significantly, while costs for end users will be reduced.
Of course, we also exchanged views on a number of issues on the international and regional agenda. And we talked about developments in Ukraine. I informed the Federal Chancellor about how Russia sees further possibilities for settlement in Donbass. It is significant that both Russia and Austria are in favour of full and rigorous compliance by all parties to the conflict with the Minsk agreements.
We discussed the Syrian crisis. We note the readiness of Austria to join humanitarian actions in support of the population of Syria. I have already said it many times, and I would like to take this opportunity to reiterate once again: if Europe wants the flow of migrants to Europe, including from this region – from Syria, from neighbouring countries – to decrease, it is necessary to help people to return to their homes, to help them to rebuild their lives in their own country.
In conclusion, I would like to thank the Federal Chancellor for useful and informative talks. Our joint programme will be continued. There are two more important events to be held, also timed to the 50th anniversary of the first gas contract.
We will meet with representatives of the business community, and then we will attend the opening of the exhibition, Old Masters from the Hermitage, at the Vienna Art History Museum.
I would like to thank you all, ladies and gentlemen, for your attention to our work.
Thank you very much.
