Medvedev, Yanukovych to discuss implementation of bilateral economic agreements

Moscow and Kiev to talk energy

President Dmitry Medvedev will meet with his Ukrainian counterpart Viktor Yanukovich later on Thursday in Sochi to discuss the implementation of several bilateral agreements.

It is expected that during the informal talks, particular attention will be given to energy and the Russian Black Sea Fleet in the Crimea. Other economic areas on the agenda will include trade, space cooperation, aviation, ship-building, and agriculture. In addition, the leaders will discuss military partnership between the two states.

Expanding trade and economic ties is one of the top priorities of Russian-Ukrainian cooperation. In the first half of 2011, the trade turnover between the two countries almost doubled and, according to the Kremlin, it may reach 50 billion dollars by the end of the year. Therefore, the creation of a favorable business climate and working out problems related to investment will be given great consideration during the meeting.

Other important issues on the agenda concern preparations for the second Russia-Ukrainian Economic Forum and customs agreements which are supposed to “create more comfortable conditions for citizens while crossing the border”.

Cultural and humanitarian issues are also likely to be touched upon during the talks.

It is the second meeting between the two presidents this year.  Dmitry Medvedev visited Ukraine in April to take part in a ceremony commemorating the 25th anniversary of the Chernobyl disaster. It was earlier reported that a meeting of the inter-state Russian-Ukrainian commission co- chaired by both leaders was to take place in Moscow this past July, but then this information was later proved to be false. The event will presumably be held in September.

11:45 11/08/2011ALL NEWS

KIEV, August 11 (Itar-Tass) — Ukrainian-Russian trade grew 1.6 times in the first sixth months of this year, Ukrainian Prime Minister Nikolai Azarov told reporters on Wednesday.

“Russian-Ukrainian relations develop dynamically this year. Trade turnover grew 1.6 times in the first half of the year, and I believe we can achieve some 50 billion dollars by the end of the year. This is the level of trade that our presidents agreed upon,” Azarov said at a session of the Ukrainian-Russian forum Second Wave of Global Crisis and Prospects for Ukrainian-Russian Economic Relations.

Thus, the prime minister confirmed the words of Ukrainian President Viktor Yanukovich, who said earlier that trade between Ukraine and Russia would exceed 50 billion dollars in 2011.

Azarov also emphasized the importance of economic cooperation between Ukraine and Russia in connection with the threat of a second wave of the global financial crisis. He said there are optimistic forecasts that the world will not be hit by a new wave of the crisis. “However there are certain risks and doubts,” he added.

“And in this situation mutual support and mutual assistance of our two major economies would be extremely important,” the prime minister emphasized.

According to him, Ukraine could closer cooperate with Russia and other countries of the Customs Union in certain economic sectors within the framework of a common economic space.

“Our export potential is approximately 24 million tons of grain. As far as I known, it is some 35 million tons in Russia. Kazakhstan has export possibilities of 15 million tons. If we sum this up, we will get a major share of the world market. This suggests the question: how is it easier to get to that market – together or separately,” he stressed.

According to the prime minister, Ukrainian-Russian relations have aggravated a bit over the recent time, first of all in connection with the setting up of the Customs Union and the format of Ukraine’s participation in it.

Nevetheless, trade and economic relations between the countries developed rather positively in the first half of the year, the Ukrainian prime minister emphasized.

http://www.bne.eu/dispatch_text16336

Phoenix Capital

Event: Prime Minister of Ukraine Mykola Azarov said on Aug. 10 that Ukraine can closely cooperate with the nations of the Single Economic Space in certain economic sectors, such as grain exports, the Ukrainian News service reported. The prime minister suggested that Ukraine cooperate with Russia and Kazakhstan when selling grain on the world market. The Ukrainian government is currently drafting Ukraine's 3+1 agreement with the Customs Union with concrete economic proposals, Azarov said. The Cabinet of Ministers reported on its web site that it expects economic cooperation agreements will be reached on Aug. 11 between Russian President Dmitry Medvedev and Ukrainian President Viktor Yanukovych, who are meeting in Sochi.

Impact: The comments are neutral for the economy.

Rationale: With his comments, Prime Minister Azarov sent the message that the Ukrainian government will try hard in the next several days to satisfy Russian overtures for economic cooperation. Azarov also made comments on Aug. 10 revealing that his government is still struggling to secure a lower natural gas price from Gazprom. In reviving the discourse on the Single Economic Space, Azarov is indicating some creative concessions can emerge from the Ukrainian side. Azarov will meet with Russian Prime Minister Vladimir Putin within the framework of agreements reached between the nations' respective presidents to discuss in better detail Ukraine's cooperation with the Moscow-led Customs Union, the Cabinet of Ministers press- service reported.

Zenon Zawada