Q & A continuation:
"Question (retranslated):
Madam Federal Chancellor, the Minsk agreements are 6 years old now, but Ukraine remains divided, and you yourself said that people along the demarcation line in Donbass are dying. Following your talks today, are there any concrete plans to hold new talks at the heads of state or government level, or should we conclude that the Normandy format has failed?
And a question for you, Mr President. Once the Nord Stream 2 is completed, can you guarantee that gas transit across Ukraine will remain in place, and if so, will this arrangement remain in force after Ms Merkel leaves the post of chancellor?
Angela Merkel:
With regard to the Minsk agreements: we have failed to achieve the goals that we wanted to achieve. But this is the format we have, including the trilateral contact group, and talks with the separatists in Donetsk and Lugansk regions.
So, this format needs to be handled with care, but progress is not as good as I would like it to be. However, if we identify an agenda, we can make arrangements for high-level meetings and talks. But we need to know what to discuss. During my visit to Ukraine, I will be pushing for identifying this agenda, because any minor progress can be decisive. However, this represents a very ambitious goal and a very challenging task. There are many inputs here. I still recommend this format, even though it is taking more time than we wanted, but we still need to avoid a dead end.
Vladimir Putin:
I agree with the Federal Chancellor regarding the Minsk agreements and the Normandy format. We have no other tool to achieve peace, and I believe that it should be treated very carefully and with respect, despite the fact that we have so far failed to achieve the ultimate goals of the settlement.
The Minsk agreements are enshrined in a corresponding UN Security Council resolution, and in this sense, the Minsk agreements have become international law.
We are concerned that during the official talks and in their contacts with the media, the Ukrainian side says one thing, but inside the country it says something very different. In fact, and I want to emphasise this, it is enough to look at what the top public officials are saying, and they are saying that they are not going to comply with the Minsk agreements.
Today, I informed the Federal Chancellor that another draft law has been submitted by the Ukrainian government. If this law is adopted – please read it, it is not a classified document, it is probably available online – it means that Ukraine will, in fact, withdraw from the Minsk process unilaterally. Because it is not just that only certain things contradict the Minsk agreements, everything there contradicts the Minsk agreements. This will mean Ukraine’s de facto withdrawal from these agreements. I hope that during her visit, the Federal Chancellor will use some of her influence and exert some pressure on the Ukrainian authorities, and that this law will not be adopted.
Now, with regard to gas transit. Indeed, the Federal Chancellor has always advocated this approach. Always, mind you, even during construction, which is about to be completed. There are 44 or 45 kilometres left to go. (Addressing Alexei Miller.)
How many, Mr Miller? 15?
There are 15 more kilometres across the sea to go. We can safely assume that this project is nearing completion. But the Federal Chancellor has always raised the issue of continuing transit across Ukrainian territory even after the expiry of the transit contract.
The first thing I want to say in this regard. First, today this issue was raised again by the Federal Chancellor during the talks. I assured the Federal Chancellor that we will fully comply with our obligations under the transit contract even after she leaves the office of Federal Chancellor. Russia will fulfil all its obligations. We are doing so now and we will continue to do so going forward.
Next, Nord Stream 2. Some people claim the project is politically motivated. This is a fallacy or an attempt to mislead people. It is 2,000 kilometres shorter than the Ukrainian transit route. And it is a modern environmentally friendly system, and I mean it. It uses innovative equipment which, I believe, cuts carbon emissions into the atmosphere during the transit of our hydrocarbons to Europe by five times. We just need to be aware of it and know it. And it is much cheaper than transit across Ukraine.
However, we stand ready, and I’ll say it again, I have already said it publicly before and I want to make a point of it now, that we stand ready to transit gas across Ukraine beyond 2024. But we must understand the timeframe and volumes. And for this, we must know, and our European partners must tell us, how much they are willing to buy from us. This is obvious.
We cannot sign a transit contract if we have not signed supply contracts with our consumers in Europe. With the green agenda, which is already underway in Europe, we are wondering whether anyone will be buying gas from us altogether and, if so, how much. This needs to be discussed.
In any case, this is a purely business matter. I mean there is yet another component that is the technical condition of the pipeline system. To reiterate, we are not only willing to discuss this, we are really willing to get there. This is especially true of our supplies to Southern Europe. Consumption is on the rise, and I hope it will keep rising in the years ahead. Today, there is no other, more reliable source than Russian gas for German and other European consumers.
Question: Mr President, Ms Merkel,
You have been in close contact during the past 16 years: you have met and have spoken by phone. There have been ups and downs in relations between Russia and Germany during those 16 years. In general, what is your appraisal of the results achieved over 16 years and what is your vision of the future of Russian-German relations?
Vladimir Putin:
The question is not quite pertinent. I would rather not appraise the performance of the Federal Chancellor, as only the German people can do this, including at the upcoming elections to the Bundestag.
Indeed, our relations have lived through different times. We just noted that we have taken different approaches to assessing various situations. Nevertheless, cooperation between us over these years, despite the difficulties we faced throughout this fairly lengthy period, has expanded and become more diverse.
Today, we talked about the economic aspect [of our relations]. The Federal Republic is our second largest trade and economic partner next to China – over $7 billion… We invested about $7.5 billion – it is even $9.5 billion – in Germany, while our German partners invested $18 billion [in our economy]. Importantly, German companies largely operate in the industrial sector. We appreciate this.
Today, Madam Chancellor put forth some concrete questions in connection with – I understand this, as I do the same on our behalf – the need to safeguard the interests of German businesses in the Russian market. This has to do with the level of domestic content and the like. All these are current issues. Generally, the quality of our relations has changed fundamentally, getting, of course, better. Hopefully, after the elections and the change of government, this trend will remain in place.
Angela Merkel:
I believe that, despite different political systems, we need to keep communications channels open and exchange opinions. This is evidenced by the global situation and the history of relations between Germany and Russia. Our countries have lived through different periods, some of them terrible and some very pleasant.
Of course, during my term as chancellor, the political systems in our two countries have developed in different directions, so there are some vital matters that need to be discussed. All these differences notwithstanding, we have always managed to keep the negotiating channel open. I hope I have managed to contribute to this. I will always say that a failure to maintain dialogue is a poor choice. "