Vladimir Putin's visit to Kiev proved wrong pessimistic forecasts about Russian-Ukrainian relations in general, following the "orange" forces' coming to power, and the end of the Common Economic Space, in particular.
The agenda of bilateral negotiations featured the future of the CES. The bulk of the top-level negotiations and the most of the Russian president's meeting with Ukrainian Prime Minister Yulia Timoshenko focused on this. Putin noted that if the project were a success, it would help develop economic relations between the two countries, including in overcoming the misbalance in Russian-Ukrainian trade. He also said he had "noticed the Ukrainian leadership's interest in promoting this project."
His Ukrainian counterpart, Viktor Yushchenko, in turn, stressed that a free trade zone should become an essential step forward to the CES, as it would help solve all the problems in trade systems and would be the best remedy for the misbalance in Russian-Ukrainian trade.
In short, nobody talked about ending the CES.
The painful issue of the border in the Azov Strait was also discussed. The Russian leader emphasized that some progress had been achieved in demarcating the maritime border. He recalled, "The issue had long been shelved out of fear." However, Putin added, "the necessary agreements will be achieved given the will on both sides."
The agenda of the two presidents' meeting in Kiev included the natural gas consortium. Putin said Russia was interested in involving Western partners in the international gas consortium for gas transit to Europe. The Russian president said it would make the project more transparent and civilized. "The most natural partner here is Germany," said the Russian leader, "as it is the biggest consumer of Russia's natural gas and receives the bulk of it via the Ukrainian transport system." At the same time, he added, "We acknowledge that other European partners may be involved in the project. Gaz de France and Italy's ENI have already shown interest in it ... We are ready to expand this cooperation," stressed the Russian president.
Vladimir Putin also touched upon Ukraine's interests in implementing this project. He recalled that Russia provided quite serious preferences to Ukraine, i.e. over 80% of Russia's natural gas is transported across Ukraine, which yields $127 million to the Ukrainian budget. "If we develop the project, Ukraine will be in an even better situation," he said. Yushchenko said Ukraine remained the owner of the gas network, and that the gas consortium would pursue a new approach to increase the capacity of the Ukrainian gas pipeline network.
On the whole, Putin was highly positive about his talks with Yushchenko, stressing that the atmosphere had been friendly and productive. Interestingly, the Kiev meeting took place the next day after he had met with the leaders of France, Germany and Spain in Paris, where Putin clearly stated, "Russia welcomes Ukraine's broadening cooperation with the EU, as it corresponds to our interests." In the context of the potential rapprochement of the "quartet," Russia-Ukraine relations could acquire an additional European dimension.
