01 June 2004 01:30
Russian envoy to Latvia: political barriers hinder economic ties
The Russian ambassador to Latvia has called current bilateral relations satisfactory, noting that more economic
cooperation in terms of investment and trade turnover could follow if the political setting were more favourable. In a
newspaper interview, Igor Studennnikov also said the recent actions by the Latvian authorities, such as visa denial to a
Russian Foreign Ministry official, were provocative. The following is an excerpt from the interview by Andrey Shvedov,
entitled "Studennikov: the most important thing is not to create artificial barriers" and published in the
newspaper Telegraf on 25 May; subheadings inserted editorially:
Latvia's EU accession opens up new opportunities for the country's development. This includes relations
with countries which are not part of the union. It is also clear that the influence of Russia as the largest neighbour
and one of the major economic partners will be felt much stronger in Latvia than that of such EU members as Cyprus or
Malta.
Bilateral trade flows
In an interview, the ambassador of the Russian Federation to Latvia, Igor Studennikov, has told the newspaper
Telegraf how bilateral relations between Russia and Latvia could develop after Latvia's EU accession.
[Interviewer] How do you evaluate the current state of relations between Russia and Latvia?
[Studennikov] As completely satisfactory. The trade volume has gone up considerably (by almost 47 per cent when
compared to 2002). This tendency continued into the first few months of 2004. The results of the first half of the year
or, rather, the first nine months will allow us to judge how things will have developed in this sphere since 1 May, the
date of Latvia's EU accession. But overall we are optimistic and do not expect a considerable drop in the volume of
trade. This can be explained, first, by the structure of our export to Latvia, of which 60 per cent, unfortunately,
consists of energy exports (gas, oil, oil products, electricity and coal). Taking into account the quota agreed in the
joint statement of Russia and the EU in Luxembourg, exports of steel and steel products could remain stable or might
increase - depending on Latvia's demand.
We do not expect any reduction in the supply of timber and chemicals. As for transit to and from Russia, I would like
to recall that 60 per cent of cargo is still of Russian origin. Russia is the forth state after Sweden, the US and
Denmark in terms of foreign investment (around 170m dollars). I think that attracting capital from Russia is consistent
with Latvia's economic interests. At the same time the possibility that the supply of mechanical and technical
products will decrease cannot be excluded - taking into account the new European tariffs and certification conditions.
This might concern also pharmaceuticals and foodstuffs. Let us hope, however, that the competitiveness of Russian goods
will go up together with increasing market demands and they will not lose their position. It is important that no
artificial barriers are erected for mutual trade. [Passage omitted]
[Interviewer] After Latvia's accession to the EU and NATO many expected an improvement in relations between our
countries. However, today we have to admit that this hasn't happened. Why?
[Studennikov] Many politicians were convinced that Latvia's accession to these organizations would mean an
automatic improvement in Russian-Latvian relations. However, then we warned that there was a certain agenda in these
bilateral relations. And progress will not be automatic, relations will develop depending on the way in which the
outstanding issues are resolved. As far as multilateral cooperation involving the EU and NATO is concerned, it will
develop according to the agreements signed.
Visa denial to Russian diplomat
[Interviewer] What do you think is the reason for the new strain in diplomatic relations?
[Studennikov] I think this question should be addressed to Latvian politicians. For us a whole range of their recent
statements was a surprise. The essence of many statements from the Latvian side confirms that the current path entails
some degree of conflict. And the attack against Mikhail Demurin is completely incomprehensible. This is a person who is
well known in Latvia, who is responsible for the Baltic dimension at the Ministry of Foreign Affairs of Russia, who was
here as recently as on 27 February and met officials from Latvia's Ministry of Foreign Affairs... [ellipsis as
published] And suddenly he is denied a visa to take part in a forum of political scientists. This poses some questions:
how sincere are statements of Latvia's leaders about the desire to improve relations with Russia?
[Interviewer] Are we to expect any reciprocal action to the denial of a visa to Mikhail Demurin?
[Studennikov] I don't know. Anything is possible... [ellipsis as published]
[Interviewer] What else stands in the way of development of trade relations?
[Studennikov] It is important that Russian business sees Latvia's investment market as attractive. As I've
noted before on several occasions, it is important to create a favourable environment in bilateral relations overall.
Unfortunately, the latest activities of the Latvian authorities are not conducive to this. Moreover, I have to note that
there is a tendency towards conscious damaging of relations with Russia in the recent statements, including at the
highest level, and in actions of the Latvian authorities. This political background, of course, is unlikely to increase
the interest of Russian business in the Latvian market. [Passage omitted]
[Telegraf] |
RUSSIA IN FACTS
