Russia 090310 Basic Political Developments Russia, Hungary pms to discuss energy coop'n, gas issues

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Full Text Articles

Basic Political Developments

Russia, Hungary PMs to discuss energy coop'n, gas issues

 

http://www.itar-tass.com/eng/level2.html?NewsID=13659194&PageNum=0

MOSCOW, March 10 (Itar-Tass) - The Heads of Government of Russia and Hungary, Vladimir Putin and Ferenc Gyurcsany, are to hold the second round of bilateral intergovernmental consultations here on Tuesday, a Russian government staff memebr has told Itar-Tass.

The two Prime Ministers intend to map out primarily ways to diversify bilateral economic contacts, and discuss possibilities to stimulate mutual investment activities and develop cooperation in high-technology sectors. A solid foundation for that has been already laid.

Russia-Hungary trade turnover continuously grows: it has trebled over the past five years, nearing a new record-high mark of $13,000 million. So, as of now, Russia ranks second (after Germany) among Hungary's foreign-trade partners.

The Russian government staff member pointed out that government analysts regard the fuel-and-energy sector as the "pivotal area of bilateral economic cooperation" with Hungary. "To Hungary, Russia is a traditional supplier of oil and natural gas," the official said. The signing of an intergovernmental agreement on cooperation in the creation of a gas pipeline for the transportation of natural gas across the territory of Hungary during Gyurcsany's visit to the Russian Federation on February 28, 2008, is regarded here as a significnt event for the development of these relations.

The Agreement envisages the establishment of a joint-venture enterprise on a parity basis for the designing, construction and operation of the Hungarian section of the South Stream gas pipeline with a carrying capacity of not less than 10,000 million cubic metres of gas a year and the construction of a conjugate subterranean gas storage facility with a capacity of not less than 1,000 million cu. m.

"The recent crisis over the transit of Russian gas, exceptional responsibility for which rests with Ukraine, reaffirmed the need to look for and implement additional ways to ensure Europe's energy security," Russian government analysts emphasize. Key importance in this respect is attached to the South Stream project, just as to the Nord Stream one," the government staff official said.

Investment interaction in the fuel sector is of bilateral purpose: within the framework of joint ventures, run in conjunction with Russian companies, the Hungarian MOL Company exercises the development of oilfields in Western Siberia, the official pointed out.

The sides also maintain long-term cooperation in the field of nuclear power engineering -- the Russian state-run company TVEL (nuclear-fuel producer -- Note by Itar-Tass) implements a contract convering the period ending in 2032 to provide four operating reactors of the Paks nuclear power station with fuel assemblies, and, in conjunction with the ZAO AtomStrojExport Company implements a programme to raise the NPS capacity from 1,760 to 2,000 megawatts.

Russian government analysts also point out a successful development of interaction on nano-scale technologies. A joint venture, based in the Hungarian cities of Miskolc and Szeged, has already begun to operate, and joint projects begin to emerge in the fields of telemedicine, epidemiological safety, and the development of infocommunication technologies.

The two Heads of Government may also touch upon matters concerning the two countries' cooperation in the field of transport. Thus, a plan to direct one of routes of the Far East -- Europe railway transportation corridor to Hungary is a project of current importance, with the establishment of a logistics center in the city of Zahony with the use of the infrastructure of the Tchop-Zahony railway transshipment junction, the official said.

Putin and Gyurcsany may also review the implementation of Russian national priority projects in which the Hungarian side is also participating.

A Russian government official recalled, "Contracts are being implemented for the production of medicines in Russia, for the provision of specialised medical centers and multifunctional clinical hospitals with equipment, housing construction, the building of agri-industrial facilitites on the basis of Hungarian technologies adapted to Russian conditions".

The official stressed, "Contacts between Hungary and Russia's regions are of importance in the context of development of interstate relations, specifically those with constituent entities of the Russian Federation, in which Finno-Ugric peoples live".

Plans for bilateral humanitarian and cultural exchanges provide for the organisation of Days of National Culture festivals in 2009-2010, an exhibition in Hungary of items from the stocks of Russian museums, roundtable meetings of art and science intellectuals of the two countries, educational and scholarship programmes.

An understanding on the establishment of such a machinery for Russo-Hungarian cooperation as intergovernmental consultations was reached during Putin's visit to Hungary in 2006 (the first round of consultations was held in 2007). "Such a format of interaction reflects a high level of bilateral trade-and-economic relations," Russian government analysts believe.

The Kremlin press service has also announced that a meeting between Russian President Dmitry Medvedev and Hungarian Prime Minister Ferenc Gyurcsany will be also held on Tuesday.