Speech of the Prime Minister of the CR, Mirek Topolánek at the Third European-Russian Economic Forum in Vienna on 23rd April 2007

As an introduction, let me thank organizers of this meeting – the European Forum Alpbach and the Eastern Institute. The subject of today's forum, Europe and Russia – Prospects for Cooperation, is very topical.

The title of the forum itself as if answered the key question of Russian history. Is Russia a European power, or does it form a separate civilization? And professor Migranjan has already spoken about it.

I do not want to interfere into this debate inadequately, I will follow that title: European-Russian Forum. For that matter, I think that adherents to identity that which is not depended on the West prevail in Russia at present. The answer to the question of it is good or not is rather a political problem, but partly also this economic forum could indicate an answer.

Russia is bound to Europe by many historical, economic and cultural relations. In spite of this fact, it is no sense in denying that it is also the very centre of the Orthodox civilization and as such, it is something more, than just part of Europe. But it is also something more than Euro-Asian power.

Russia and Europe are two civilizations, which have been competing all centuries long, but they have been cooperating, as well. And whenever they were able to find a common language, the positive effects were positively global. The centenarian Peace after the Vienna Congress is a good example. That famous concert of powers.

I think that we have a new chance for the concert of powers. They are the United States, which join Russia and united Europe this time. As well as two hundred years ago it concerns stability and maintaining order in the struggle with chaos, which is represented, apart from other things, by international terrorism.

Security and stability do not only depend on military cooperation and cooperation of intelligence services. No less important is economic development. I mean not only bilateral relationships Europe-Russia, but also the cooperation just in regions, which represent potential threat for security and stability. Ability of cooperation of the UN, NATO, Russian Federation, and European security forces in military but mainly in peace, restructuring and development actions is and must be a basis of the future peace architecture in global world.

The European Union, after the accession of twelve new members, experiences a period of self-reflection and confirmation of its own identity. It must find a way how to face current challenges like competition of newly emerging centres in Asia or continuation of its civilization mission aimed at extension of the space of stability, peace, security and prosperity. I would like to assure professor Migranjan that the EU does not face a crisis, the EU has no serious problems and thus Moscow has not a single reason to doubt the EU and to negotiate with old and new member countries separately.

By its enlargement the EU is drawing near to Russia. And in spite of the fact that Russia is too large to become a direct part of the EU, both civilizations could and should know how to utilize high quality relationships with their neighbours.

Russia experiences internal development, as well. Liberal reforms have stabilized the economy and started fair growth. Concurrently, Russia must solve social and demographic problems and it must, in common with Europe, cope with the global Asian competition. Russia is also awaiting two elections: parliamentary elections at the end of this year and presidential elections next year. As it can be seen from outside, new centralization of power and new power ambitions occur. Will Russia manage elections and the following period without turbulences? Is the time mature enough for this discussion?

It might seem that time when both Russia and the European Union are solving their problems is not very convenient for defining future parameters of mutual cooperation. On the other hand, it is evident that the existing Agreement on Partnership and Cooperation of 1997 does not reflect current needs.

A lot of things have changed on both sides during last ten years. Our interest is to start negotiations in a short time, which would end up in a new agreement corresponding to level and extent of our mutual relationships and potentials of both powers.

Russia is a significant trade, economic and row material partner of the EU. Russia was, is and will be a key energy raw material supplier of countries of the EU, including the Czech Republic.

Supplies of oil and gas to the Czech Republic form nearly 82% of Czech imports from Russian Federation. Energy products form more than 60% of total exports of Russia to the EU, which is equal to 60 billion Euros yearly.

60% of Russian export of oil is supplied to the EU, which represents over 25% of the total oil consumption in the EU. Moreover, 50% of Russian gas export is directed to the EU, which represents more than 25% of the total consumption of gas in the EU.

We are interested in stable and secure supplies, in transparent relationships between suppliers and customers, in possibility of access to transport capacities and in standard investment protection.

We believe Russia will not use energy policy as a coercive tool in its foreign policy. The EU must take complex attitudes to problems of the individual member states and to bilateral disputes with Russia and it must seek solutions based on the principle of solidarity.

Energy security cannot be solved just by building of its internal market, but above all through clear and united policy of the EU to Russia, which would be based on principles of the European Energy Charter.

Russia and Europe are depended on each other in the sphere of energy raw materials. Concurrently, there is a challenge here concerning reduction of greenhouse gases emissions. Without participation of the Russian Federation and further global players - the USA, China and India in objectives of the EU, the binding and implemented objectives of the EU are trifling, with regard to 14% share of the EU in global emissions. That is why the energy should remain a prominent issue of the common agenda in next years.

Opportunities of cooperation in investments in effective and safe transport a production of energy as well as in reduction of energy intensity are opening up. Necessary extent of these investments in next years will be enormous, as well as their strategic significance.

As far as further economic cooperation is concerned, the Czech Republic supports accession of Russia to the WTO, because this step will lead to increasing transparency and better entrepreneurial and investment atmosphere.

We also support the idea of establishing a zone of free trade between the EU and Russia and gradual closer alignment of legal and regulatory free trade mechanisms.

We must not forget human dimension of mutual contacts either. The Czech Republic welcomes the Readmission Covenant and the Covenant on Simplification of Visa Procedure between the EU and Russia. Provided that there will be further strengthening of cooperation in the sphere of justice and interior affairs, it is rightful to discuss also the prospects of total abolition of visa duty.

I would like to talk in more detailed way about the security cooperation, which I mentioned in the introduction. Russia is an important global participant in the sphere of security and foreign policy. In fact, we are facing the same threats: terrorism, proliferation of weapons of mass destruction, organized crime, which is connected with drug smuggling, e.g. from Afghanistan.

Here there is a potential for deepening mutually advantageous cooperation, which is not quite grasped. Open exchange of ideas between the EU, the USA and Russia is important for solution of frozen conflicts in Moldavia and in the South Caucasus. Common interest is also to cease infringement of basic civil rights and freedoms and democratic principles in Belarus.

I must also mention the relationships of NATO – Russia. We will commemorate in 2007 the tenth anniversary of establishment of the cooperative mechanism, the Permanent Joint Council (PJC) and fifth anniversary of its transformation to the existing NATO-Russia Council (NRC).

During this decade, relationships of NATO with Russia have become an important part of European security architecture. I believe that this cooperation will be further developed.

I also believe that Russia does not regard geographical approach of NATO as a matter jeopardizing its security interests. Russia share the most secure boundaries just with member countries of NATO and the EU, which shows that stability is spreading in the direction of Russia through NATO.

The Czech Republic regards the Russian Federation as a significant partner. Our relationships, both bilateral and economic are not burdened by any political issues, which would hamper further development. It enables us to solve gradually all the existing problems and through open exchange of opinions also such issues where both side have different views.

Forthcoming official visit of President Václav Klaus to the Russian Federation (26th – 30th April 2007) is a culmination of the existing stage of our mutual relationships for us.

If I recapitulate briefly my paper, I regard strengthening of mutual responsibility for global security and stability as key for future prospects of Europe-Russia cooperation, whether it concerns energy security, stability in explosive regions or the fight against terrorism.

Let me to conclude with words of the significant Russian writer and thinker, Fjodor Michailowitch Dostojewski: "He who has no money is poor; who has no friends is poorer; but who has no heart is the poorest in the world." And this could be a conclusion of my speech and a motto of this economic forum.