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RUSSIAN PRESIDENT VLADIMIR PUTIN'S VISIT TO ARMENIA WILL BE SIGNIFICANT FOR FURTHER DEVELOPMENT OF ARMENIAN-RUSSIAN ECONOMIC COOPERATION

Below is an exclusive interview of Russian Ambassador Extraordinary and Plenipotentiary to Armenia Anatoly Dryukov to the ARMINFO news agency.

Q.What is Your assessment of the prospects of development of the Armenian-Russian relations in the aspect of Vladimir Putin's forthcoming official visit to Armenia, on September 14.?

Dryukov: Any official visit of the head of a state to another country either sums up a kind of result of the development of bilateral relations or give a new impetus to their development. In this aspect, the Russian president's forthcoming visit to Armenia, on the one hand sums up the results of our relations, which have undergone considerable and qualitative changes over the last few years. We are politically closer now, which is confirmed by the recent Armenian-Russian consultations at the foreign ministers' level. We have common grounds on numerous issues both in the international and in bilateral aspects. Our positions on all the issues either coincide or are completely close. The Armenian-Russian military-technical cooperation has recently been extensively developing. An example is the joint duty of the Armenian and Russian anti-aircraft forces.

Q. Can the Russian president's visit to Armenia be supposed to become a new impetus to the development of the Armenian-Russian economic cooperation?

Dryukov: Certainly, Russia and Armenia intends not only to continue, but also develop their cooperation. Currently, our countries have the task of establishing mutually advantageous trade and economic cooperation. In this connection, both the sides still have much to do. But there are positive results. Thus, the abolition of the value-added tax caused a 17% growth in our trade turnover during the first 8 months of this year. The exports of Armenian goods to Russia doubled. And all this against the background of the annual decrease in our trade turnover since 1998.

Also, last year Russia was the second country as to the volume of all types of direct investments in Armenia's economy. Thus, we laid the foundations for the further development of deepening of our economic cooperation. I will not conceal from you that Russian enterprises and financial-industrial groups intend to make considerable capital in Armenia's economy.

Vladimir Putin's forthcoming visit will be significant for the further deepening of the Armenian-Russian economic cooperation. Our countries are on the threshold of an economic breakthrough, which can be achieved only by joint efforts. However, cooperation must be mutually advantageous, which is a very difficult task to perform.

As regards the economic cooperation, it will certainly entail the cooperation in the scientific, cultural and human resources exchange spheres.

Q. What economic agreements are to be concluded during Vladimir Putin's visit to Yerevan?

Dryukov: The reconciliation of the draft framework Agreement on long-term economic cooperation between Russia and Armenia is currently nearing completion. It will be the principal economic document of the visit. A long-term program of bilateral cooperation in specific directions is expected to be elaborated on its basis.

Besides, quite a number of intergovernmental agreements are to be signed during the visit, such as on encouragement and protection in investments, on cooperation in the tourist sphere, on cooperation between administrations (subject) of the Russian Federation and regional administrations of Armenia.

Q. A number of enterprises of Armenia's military-industrial complex will be transferred to the Russian side against the Armenian debt. Is their operation real, considering Russia's current financial difficulties?

Dryukov:Despite the difficult economic situations in Russia and Armenia, many enterprises of the Armenian and Russian military-industrial complexes still continue cooperation. Armenian enterprises have always supplied certain components to Russian enterprises.

Q. Is there a complete list of enterprise which will be transferred to the Russian side?

Dryukov: Experts on both sides thoroughly examine each enterprise, its state and production capacities. The negotiations are still under way and will last until the sides find mutually acceptable solutions. The most logical will probably be the evaluation of the contentious enterprises by a group of independent experts. The complete list of enterprises will be made public only after the sides reach agreements on them. The experts will continue working after Vladimir Putin's visit as well. As regards the presidents, they, on their part, will permit the process and encourage it.

Q. Certain political and economic circles in Armenia believe that the Armenian side does not intend to invest real capital in Armenian enterprises. Are Russian companies really ready to make investments?

Dryukov: These fears are expressed by people who are not proponents of the development of the Russian-Armenian economic cooperation. These people do not want the enterprises that will be transferred to the Russian side against the debt to operate. Why they do not want it - it is an issue of a different aspect.

However, the realities of life testify to the opposite. The brilliant examples of successful bilateral cooperation are Armenian-Russian joint ventures, such as "Armenal", Vanadzor chemical complex, "ArmRosgasprom", and "Grand Candy".

Let us have a frank and straightforward look at the current situation. Like the Russian government, the Armenian government has a privatization program. Anyhow, theses enterprises will be privatized, and you will have to pay your debt to Russia.

Besides, our businessmen are not so rich, and Armenian enterprises are not so competitive to them, so that Russians purchase any Armenian enterprise to make them bankrupt.

Q. There is also an opinion that the transfer of Armenian enterprises to the Russian side is not only an economic, but also a political decision. Do you agree with this opinion?

Dryukov: Economy always developed into politics, just as politics without economy is not politics. This decision really reflects the policy pursued by the Armenian authorities. Certainly, we take this fact into account.

Q. As regards the military cooperation. Armenia's authorities made repeated statements that the presence of the Russian military base plays a key role in ensuring the country's national security. What is the place of the Russian military presence in Armenia in the concept of national security of the Russian Federation?

Dryukov: The national security concept is a multipronged strategical document. Since it is a general document, it does not reflect all the specific steps related to the realization of the concept. So it does not directly mention Russia's military presence in Armenia.

At the same time, among the threats to the national security the document mentions: the emergence and escalation of conflicts near the state frontier of the Russian Federation and the CIS borders, as well as attempts to weaken Russia's positions in a number of regions of the world, including the Transcaucasus. To ensure Russia's preparedness to promote the formation of a stable military and strategical balance of forces in the region, the concept stipulates, under corresponding circumstances, the necessity for Russia's military presence in some strategically important regions of the world. And this presence of military contingents (military bases) will be based on the international law, as well as on partnership principles. The stationing of Russian military base No. 102 in Armenia at Armenia's request should be viewed considering all these factors.

Q. Can You state today that Armenia is the only military and strategic partner of Russia in the Transcaucasus?

Dryukov: A priority of our foreign policy is the development of bilateral and multilateral cooperation with the CIS countries. I would like to stress that Russia seeks to develop friendly relations and strategic partnership with all the CIS countries. Practically, it builds relations with each of them considering their reciprocal willingness to properly consider the interests of the Russian Federation, including the rights of our Russian compatriots.

It turned out so that neither Georgia nor Azerbaijan are signatories to the Collective Security Treaty (CST). The relations with Georgia are not developing as we would like them to. The desired level of cooperation with Azerbaijan has not yet been reached either, though changes for the better in the bilateral relations have been observed this year.

Armenia is currently the only Transcaucasian state which is participating in the CST together with Russia, which certainly implies a high degree of military and strategical partnership between the two countries.

10 September,2001
ARMINFO

ARMENIAN AND RUSSIAN LEADERS LAID MOST SOLID FOUNDATIONS FOR BREAKTHROUGH IN DEVELOPMENT OF BILATERAL RELATIONS THIS YEAR

Below is an interview of Russian Ambassador Extraordinary and Plenipotentiary to Armenia Anatoly Dryukov to the ARMINFO news agency.

Q: How would you describe the state of the Armenian-Russian relations last year? What was done in 2001, and what has to be done?

A: The results are first of all expressed in the development of bilateral relations last year. The major task of the Russian Embassy in Armenia is rendering assistance in the development of the Armenian-Russian cooperation.

We are satisfied with the results of development of our relations last year. 2001 was marked by an essential breakthrough in the Armenian-Russian relations. I think that an extremely high importance was attached to the intensification of the bilateral trade and economic cooperation at the top level last year. Before, we used to say that Armenia and Russia reached a high level of political, military and technical cooperation, but the bilateral trade and economic relations were behind. The issue must have matured, and all the partied concerned so strongly felt the necessity for qualitative changes in this sphere that during three of their meetings, twice in Yerevan and once in Moscow, Robert Kocharian and Vladimir Putin attached great importance to the deepening of the Armenian-Russian trade and economic relations. In other words, our leaders can be said to have seriously decided to give an economic basis for our trade and economic relations in 2001. Such turn in developments is most positive and leads to the creation of a solid basis for the bilateral relations.

Q: And what is the advance in the realization of the agreements reached during the meetings?

A: I am satisfied with the decisions made at the summit talks. At the same time, I wish these agreements were put into practice as soon as possible.

Of course, in economy, especially in market relations, each step must be well-thought-out for the bilateral economic cooperation to be mutually advantageous. Otherwise, it will collapse very soon. So, on the one hand, we are dissatisfied over the fact that not all is realized as soon as we wish. I think our experts carried out tremendous work in this direction. They prepared materials containing specific proposals for the governments of our countries. These proposals are in our establishing joint ventures in such spheres as energy, electronics and mining and smelting. The preparation of these documents is currently nearing completion, and I think that relevant agreements will be signed in the near future. At the same time, I would like to warn the part of the public that expects prompt solutions and actions, as not all is done promptly in economy, that is, each step has to be really well-thought-out. I think that tremendous work was carried out and events must not be precipitated. In the near future, we will have the opportunity to observe the further stage of the conclusion of an agreement on the realization of the arrangements reached at the top level. This agreement should be considered the moment of launching specific projects.

I would like to point out that during 10 months of 2001 we exceeded the trade volume of the whole last year. Now, during 10 months of 2001 we have 178mln. USD, which is 27$ more as against the same period of the previous year. And this upward tendency is likely to be maintained this year as well. Most pleasant is also the fact that Russia has been the first as to the direct investments in Armenia's economy for over a year. In 2000, this figure was 29mln. USD, and 28 USD last year. It is in investing capital in Armenia's economy that our financial-industrial corporations are seriously interested.

I would also like to emphasize one more thing. Some in Armenia are advancing the thesis that the Armenian authorities are currently selling the country's industry to Russia. In this connection I can say that it is most difficult to think of a more stupid thesis. When people speak of it they evidently mean that Russia will take as a pledge the Yerevan "Mars" plant and the Kajaran ore mining and processing enterprise and move them to the Moon or to the Mars. And these people do not at all understand that the enterprises remain in Armenia and the number of jobs is increasing in them. Also, budget receipts - and these are only positive points. As regards the ownership of certain enterprises, the history of the world's economic development proves the simple truth, namely, that the capital has no borders: it is international and works where it derives profits. Russia intends to develop economic cooperation with Armenia only on a mutually advantageous basis.

Q: The opening of transport trunks is of high importance to the development of the Armenian-Russian economic relations. What efforts does the Russian side make in this direction?

A: The shortest way, including from the viewpoint of investments, is the railroad from Russia to Armenia via Abkhazia. We proceed from the necessity for the opening of that railroad as soon as possible. We are ready to restore the Abkhazian railroad in the shortest period. But, the Abkhazian conflict remaining unsettled impedes the solution to the problem. I know that at their meetings with Georgian representatives Russian and Armenian representatives raise the issue of opening that railroad.

Q: Well, how would you describe the political relations between out countries at the current stage?

A: The Armenian-Russian political relations are at a very high level. They are determined by the Declaration signed by out presidents in Moscow, in September 2000. It is the basis for the development of the bilateral political relations. I would also like to say that in 2001 so many heads of different Russian establishments visited Armenia as have not during three years of my stay in Armenia. On the other hand, heads of Armenian establishments frequently visited Moscow last year. It is already the indicator of the level of political cooperation.

It is pleasant to point out that the positions of Armenia and Russia practically coincide. And it is the basis for bilateral cooperation within the framework of all international organizations. So it is only in positive aspect that the political cooperation can be spoken of. In 2001, there was a moment when both the Armenian president, the speaker of the Parliament and the prime minister were in Russian almost at the same time. This testifies to the level of our relations and to the quality of relations between our states' leaders. An atmosphere of high mutual trust has been created.

Q: And what about cooperation in the defense sphere?

A: Our military and military-technical cooperation is making progress. Armenia's President Robert Kocharian recently signed the instrument of ratification of the Agreement on Planning Joint Actions of Troops of Russia and Armenia. In 2001, our countries' air-defense troops assumed their duty. A number of other agreements were signed in this sphere, which really deepened the Armenian-Russian military and military-technical cooperation. At the same time, this process is endless, and one can never say that we reached perfection. Each new day, each new month and each new year set absolutely different tasks to our countries, to our armed forces.

Now, an important task is counteracting international terrorism. This task unites the efforts of all the countries within the Collective Security Treaty (CST), So in this direction we are satisfied with our cooperation.

Q: And what is moscow's attitude to the recently intensified military cooperation between Armenia and the United States?

A: Armenia is a sovereign state and has the full right to develop relations with any state in any sphere, in any field. Nobody is entitled to dictate Armenia what and how to do. After September 11 the world changed.

I think that the Russian-Armenian cooperation will promote the stabilization not only in individual regions, but also in the entire world. At the same time, we paid attention to the American side's remark that the Armenian-american cooperation is in conformity with Armenia's participation in the current security systems and is not aimed at replacing the Russian troops in Armenia.

Q: By the way, about stabilization. Russia, together with the USA and France, is a member of the OSCE Minsk Group for Karabakh settlement. What is your assessment of the Karabakh settlement process last year?

A: Speaking of the settlement of the Nagorno-Karabakh conflict, I would like to point out the positive changes in the activities of the OSCE Minsk Group. This positive change is in the co-chairmen's holding a single position. They are disposed to a constructive tone. It differs from the situation observed a few years ago. The positive change is also in that the co-chairmen are strongly against any calls for a military settlement of the conflict. They pronounce for the preserving the atmosphere of confidence among the two countries' public in the aspect of compromise solutions.

As regards the settlement itself, all the hopes we had early last year did not unfortunately come true. At the same time, knowing what way has already been passed, I think that all the parties to the conflict must further exert efforts toward continuing the negotiating process.

Q: Official Yerevan the breakdown of negotiations to be the result of unpredictable toughening of its position on the part of the Azeri leadership?

A: It would not be tactful on my part to speak of who accelerated or slowed down the negotiating process. Russia is one of the OSCE minsk Group co-chairs, and so we are trying to display an impartial approach to both the conflicting parties. The parties immediately involved in the conflict must reach agreements.

As regards our position, it is as follows: we will welcome any agreement that will be reached between the Armenian and Azeri presidents. For our part, we are ready to create conditions and ensure guarantees for the realization of these agreements in cooperation with the other OSCE Minsk Group co-chairs. I will not make forecasts, as I am a politician who bases himself on concrete facts.

Q: What, in your opinion, are the main trends of development of the Armenian-Russian relations this year?

A: Reverting to the Armenian-russian relations, I will point out that the events that took place last year laid a solid basis for a breakthrough in the further development of the bilateral relations. But nothing will be done by itself. Everything depends on us, on how we will implement our agreements. Both Russia and Armenia are determined to make a breakthrough in the bilateral cooperation.

29 Junuary, 2002
ARMINFO