Today, Angela Merkel met with Vladimir Putin to hold talks. This is the first time the leaders of these two countries have met after their re-elections. Against the backdrop of recent tensions between Washington D.C. and Brussels, the meeting in the comfortable atmosphere of Sochi and a bouquet of roses presented to the German chancellor by the Russian president looked like a good sign to journalists. Moscow and Berlin are ready for dialogue on the most pressing issues — from the situation in Syria and the fate of the Iran deal to the protection of the participants in the Nord-Stream 2 project from external pressure.
Aleksey Petrov reports on the details of the talks.
This meeting is being closely followed by the press, business, and world diplomatic circles. Angela Merkel's motorcade has already arrived at Putin's residence in Sochi. The talks will begin in just a few minutes. The critical talks are held against a backdrop of growing economic tension between the US and the EU. A bouquet of cream roses and freesias for the chancellor: Merkel is the first Western leader with whom Putin has met after his inauguration.
Prime Minister Medvedev welcomes Merkel together with the head of state. He has just reported to Putin on the composition of the Cabinet. The dialogue between the president and the chancellor is held behind closed doors. Meanwhile, the press discusses which political views Merkel might have brought to Sochi. The EU's diplomacy with the White House has failed. Business is under pressure because of the duties imposed on steel and aluminum; Trump's unilateral exit from the Iran nuclear deal is like a slap in the face for the Old World. An angry Europe is waiting to see how far Merkel is ready to go to defend the EU's position.
The flags of Russia and Germany have been put up, the conference is about to begin; the conference hall is full of representatives of leading Russian and German media outlets. This is also a good indicator that shows regard for Russian-German relations. Four years ago, Berlin damaged Russian-German business ties under American influence; after all, it's not about politics — it's about people.
Vladimir Putin: "I don't think there is a need to link the development of Russian-German relations to our relations with other countries. Germany is one of our key trade and economic partners and thousands of jobs depend on our cooperation, both in Russia and in Germany. Hundreds of thousands of jobs. Now, we have resumed buying a large amount of German goods, which supports jobs in Germany. Our cooperation and joint ventures are an important factor affecting the lives of Germans and Russians".
Angela Merkel: "It's in our strategic interests to maintain good relations with Russia; in the most difficult times, I have advocated that the EU and NATO continue dialogue with Russia. If we want to solve problems, we need to communicate with each other".
Germany is one of our key trading partners, in the second place after China. Russia provides a third of Germany's needs for natural gas and oil; in 2017, the volume trade grew by almost a quarter, the first time since 2014. Russia is a huge market for German business: it holds for Siemens, which agreed with Russian Railways to provide service for 240 Lastochkas, and for Volkswagen, which launched a plant for the production of engines in Kaluga, and for the CLAAS firm, which manufactures combine harvesters and tractors in Krasnodar.
One of the largest joint projects is Nord Stream-2. Business is threatened with sanctions from Washington, D.C., and the situation remains the same with the change of names in the White House.
Vladimir Putin: "We're aware of the US position about the Nord Stream-2 project. We'd like to note its unlikely continuance in current administration's actions regarding the Obama's administration's position. There's nothing new here. It's determined by two factors, as we're told. The first one is their support for Ukraine who doesn't really want a relationship with us, but has no problem taking our money for transit. That's about 2-3 billion dollars a year. They want us to give some of our money to Ukraine. We don't really mind, we're willing to keep this transit if it's economically viable, which can be achieved via negotiations. We're willing to negotiate with Ukraine about this matter".
The energy sector is one of the key issues of negotiations in Sochi. That's what Novak, the Minister of Energy, and Gazprom CEO, Miller, are talking about. Nord Stream-2 can be used to deliver "blue fuel" to Germany and other countries. The UK and Norway's extraction volumes are dropping, but demand is growing. However, Europe's energy security obviously isn't a priority issue for President Trump. The Head of the White House couldn't refuse to appreciate the business-related possibilities.
Vladimir Putin: "Donald isn't just the American President, he's also a steady, successful entrepreneur. Thus, I believe he's promoting his business to sell US-produced liquefied gas to Europe. Is it possible? It is. However, it's expensive. It's about 25-30% more expensive than Russian piped gas in Europe. However, I understand where the US President is coming from, he's trying to defend his business. He wants to promote his product to the European market. But it depends on us, on how we build our relationship with our partners, it also depends on our European partners. The project is launched, we consider it lucrative, and we'll fight for it".
There's no need to clarify the necessity of Nord Stream-2 to Berlin.
Sergey Lavrov, Russian Foreign Minister: "We've received confirmation from the chancellor that Germany is committed to Nord Stream-2. Obviously, they want to find a solution that won't complicate their relationship with the US. However, as President Putin has emphasized at today's conference, we understand their concerns, we don't want to create any additional problems".
Since the sanctions have become a universal pressure tool thanks to the White House, Russia is forced to defend its interests. The State Duma is debating a law to punish actions that lead to sanctions. The Russian deputies aren't doing anything new here, this is similar to European norms.
Vladimir Putin: "I'd like to note that there's currently a similar law in Europe. And now, as far as I know, our colleagues in the European Union want to activate this law to protect their interests from the so-called cross-border sanctions from the US, in this case. I don't see anything unusual if Russia passes an identical law. However, it must be well-balanced, it must not harm our own economy or our partners who work dutifully with Russia".
The Syrian situation is also essential. The refugee flow has already become a test for the Old Country and for Chancellor Merkel.
Vladimir Putin: "If Europe wants the people to leave Europe and return home, it's important to help Syria restore their economy, and provide them with real humanitarian aid. This process has to become fully political. Let's take Raqqa, for instance. It's ruined. People are still dying of mine explosions there. There are still dead bodies among the ruins. Where are people supposed to return to?"
Europe's ability to influence Kiev is just as hard of a test. All sides agree there are no alternatives to the Normandy format. The audience asks about the fate of our colleague, Ukraine RIA-News Editor-in-Chief, Kirill Vyshinsky.
Vladimir Putin: "This is completely unprecedented. The man is accused of treason for simply fulfilling his professional duty in public. I can't recall anything like this to have ever happened".
Merkel talks about strong Trans-Atlantic friendship. But, after the US had exited the Iran nuclear deal, these words seem like a bluff.
Angela Merkel, Chancellor of Germany: "We talked about the complicated situation regarding the US exiting the Iran nuclear deal. Germany, the UK, France, and all our EU colleagues support this treaty. We will continue to comply with it. An odd situation has occurred, and Europe is discussing it with Iran. I don't think this treaty is perfect, but it's better than no treaty at all".
They've also talked about the fate of Sergey Skripal, who was discharged from the hospital today.
Vladimir Putin: "Yes, I've heard from the media that he's been discharged, I'm very happy for him and hope he feels well. I have a few thoughts on this matter. First, if some chemical warfare agent has been used, as our UK colleagues have stated, this man would have died on the spot. But, thank God, he recovered and was discharged from the hospital. I hope he continues to feel well. Now, as for the investigation. We have offered our help with the investigation to the British government many times. We've asked for their permission to be allowed to participate in this investigation. There still hasn't been any response. Our offer still stands".
Putin and Merkel leave to continue their conversation after the press conference. The very fact of eventful political dialogue is an important political asset for the chancellor. Merkel understands it very well when she leaves Sochi.
Aleksey Petrov, Petr Ravnov, Oleg Makarov, and Oleg Shavyrin. Vesti, Sochi.
