/ 4 September 2006

Economic relations will be focus of Putin visit

South African President Thabo Mbeki is to host his Russian counterpart Vladimir Putin this week to discuss issues aimed at strengthening relations between South Africa and the Russian Federation — with the emphasis falling on economic relations.

Putin is also scheduled to meet business leaders, including De Beers chairperson Nicky Oppenheimer, during his two-day visit starting on Tuesday.

The government news agency, BuaNews, reported that Putin’s visit was the first ever by a Russian head of state to South Africa.

Presidents Mbeki and Putin will, according to the agency, discuss the status of bilateral political and economic relations between both countries, including endeavours to promote economic relations.

The promotion of the African agenda, including a follow up of the group of eight summit, regional developments in the Southern African Development Community (SADC), conflict resolution and peacekeeping in Sudan and Côte d’Ivoire, as well as the situation in the Democratic Republic of Congo will also be discussed.

The agency reported that other issues include the non-proliferation and peaceful use of nuclear energy with respect to the situation in Iran, the Middle East and the reform of the United Nations ahead of the general assembly scheduled for later in September.

It is anticipated that the two will also sign a number of agreements, including cooperation in the field of health care and medical sciences, exploration and use of outer space for peaceful purposes, aviation and water resources and forestry.

An agreement on the reciprocal protection of intellectual property rights related to defence, industrial cooperation, as well as protocol on cooperation in the fields of arts and culture are also expected to be signed.

South Africa and Russia already enjoy healthy economic relations with South African exports to Russia reaching $106,5-million while imports from Russia stood at $18,2-million in 2005.

The bulk of South African exports are made up of: vehicle engines (18,8% of exports); machines and mechanical appliances (14%); fresh grapes (13,8%); flat-rolled products or iron (10%); pears (6,8%) and peaches (3,4%).

The major import from Russia is made up of the nickel group of minerals.

The Russian Federation adopted a decree in March 2003, following South Africa’s recognition of Russia as a market economy in support of their World Trade Organisation membership, to include South Africa in a list of developing countries that would enjoy preferential trade tariffs and duties with regard to exports to Russia, the South African Department of Foreign Affairs said.

The Department of Foreign Affairs said: ”Strategic direction and a structured and disciplined policy framework have resulted in substantive action taken by the respective governments in the strategic minerals and energy sectors through, inter alia, the establishment of a joint task force on minerals in support of black economic empowerment objectives.

”Solid progress in the field of science and technology relations, especially in terms of the presidential policy objective of establishing South Africa as a key player in international astronomy and deep space research, also characterises the relationship,” the department said.

BuaNews reported that Russian tourists to South Africa totalled 7 473 in 2004 while the number of South Africans visiting Russia is growing steadily.

Putin is also scheduled to meet the Speaker of the National Assembly, Baleka Mbete, and the chairperson of the National Council of Provinces on Tuesday. He is also scheduled to meet the Deputy President, Phumzile Mlambo-Ngcuka. — I-Net Bridge