Statement by State Secretary Kim Traavik

"Russia in Norwegian Foreign Policy: Strategy and Results."

NHO/KS Conference 25 September 2003 - concluding conference of the Presidential Initiative Programme

Dear participants, dear friends,

I take great pleasure in addressing, once again, the concluding conference of the Presidential Initiative programme.

The programme remains a success story. Our thanks are due to the Norwegian Association of Local and Regional Authorities, to the Confederation of Norwegian Business and Industry, as well as to the participating Norwegian companies and municipalities.

And we are of course particularly grateful for the support of Russian authorities, whose initiative this is.

But at the end of the day, the success or failure of exchange programmes such as this is determined by the participants. In the present case, there has been enthusiasm, dedication and commitment on the part of the participants. We salute you for it, and we hope that you have benefited from the experience, personally as well as professionally.

At the Ministry of Foreign Affairs we are very pleased with the Presidential Initiative programme. It seems to us that it makes a real contribution to building democracy and market economy through the transfer of knowledge and skills. And it contributes to building personal and professional relationships between Russians and Norwegians. Hence, we are committed to continuing our support for the Programme.

Ladies and gentlemen,

I have been asked to share with you some thoughts on the existing relations and evolving co-operation between Norway and Russia, from a broader perspective.

Let me start by noting that Russia is the largest and most populous country in Europe. For centuries she has exercised great influence on the development in and around our continent.

As neighbours with common borders in the North, Norway and Russia have a long history of peaceful, cooperative solutions to common problems and challenges.

As neighbours, we see eye to eye on many issues. Over the last ten years, the common ground has been greatly expanded. There has been a tremendous deepening and broadening of the bilateral relations between our two countries.

To be sure, Norwegian and Russian positions are divergent on quite a few issues. But this is in the nature of things. The challenge lies in dealing with our differences in a constructive and pragmatic way. In this respect, too, there can be no doubt that we have come a long way over the last decade.

On balance, and from an overall perspective, to my mind there can be no doubt that the bilateral relationship is in better shape today than it has been for a very long time.

On the Norwegian side, we are committed to keeping it that way. And we are convinced that our Russian opposite numbers share the same commitment.

After the disappearance of the 20 ^th> century’s ideological divisions between East and West, one of the main priorities of Norwegian foreign policy has been to pursue all the possibilities – in political, economic and human terms – that lie in our geographic proximity with Russia. The potential for co-operation is vast and largely untapped.

For our part, we will continue to work hard and with determination to consolidate existing cooperation and build upon it across a range of areas.

In spite of the tremendous surge in grass-roots contacts across a border that used to be hermetically sealed, there is still considerable scope for further expansion of cross-border cooperation in the north.

The Barents co-operation, which this year marks its ten years anniversary, has been particularly successful in developing these people-to-people relations, in areas such as culture, relations between indigenous peoples, education, health, and so on.

Norway aims to continue and strengthen this co-operation during our two-year chairmanship of the Barents Council, starting from October this year.

We will carry forward the main strategic priorities of the preceding Swedish, Russian and Finnish chairmanships, including the economy; education research; human development; the environment and nuclear safety; and regional interaction and policy harmonisation. And we will bear in mind the concerns and interests of the indigenous peoples of the North.

We see, furthermore, a particular potential for further developing economic cooperation between our two countries. Last year’s visit of President Putin provided new impetus to that end. The two sides are working hard to capitalize on this, in close cooperation with the two business communities.

Ladies and gentlemen,

We are witnessing a number of positive developments in Russia. There is economic growth. And the legal and economic framework for trade and investments in Russia is improving. This is paving the way for increased interest among Norwegian business enterprises to look to the East.

We look forward to the continued development of business networks and co-operation, based on the needs and requirements of private enterprise itself. A promising development is the establishment of a Norwegian-Russian Business Forum.

In our view the Forum will serve a useful purpose as a meeting place for eminent representatives of the business communities of our two countries. Hopefully, it will generate renewed interest in and awareness of the potential for enhanced economic cooperation. The same applies to a Norwegian-Russian Chamber of Commerce, which seems likely to be set up in the near future.

And we will continue our efforts to ensure broader international support for ongoing reforms in the Russian Federation, in areas where this may still be needed, bearing in mind that this kind of support by its very nature is transitional in character.

In this respect, we attach particular priority to nuclear safety in north-western Russia.

The nuclear legacy of the former Soviet Union is of course a grave environmental threat. But equally, it is a serious issue in terms of the efforts to prevent the proliferation of weapons of mass destruction.

9.11 and later terrorist attacks, including recent attacks in the Russian Federation, are tragic reminders of the extreme lengths to which terrorists are prepared to go to cause death, suffering and devastation.

As a result, international concern about possible use of nuclear materials for terrorist purposes has increased. This in turn has led to a heightened global awareness of the problem of nuclear safety, and of the need for concerted international action to deal with it.

Norway and Russia have established exceptionally close cooperation in the area of nuclear safety. Since the mid-nineties, we have allocated a total of 840 million NOK for this purpose. We attach particular importance to the dismantlement of decommissioned nuclear-driven submarines, which has been assigned top priority also by President Putin.

Last June, on behalf of the Norwegian government, I signed contracts for the dismantlement of two non-strategic submarines at shipyards near Murmansk and Archangel, respectively.

This work is exceptionally urgent, but also exceptionally difficult. Some 70 subs are awaiting dismantlement in North-western Russia. Most of them are in bad condition, as we were tragically reminded a few weeks ago.

The Russian authorities must ensure that all stages of the work are as environmentally safe as possible. But the risks cannot be completely eliminated. Yet, inaction is not an option.

We for our part consider the dismantlement of two submarines funded by us as pilot projects. If they turn out to be successful, we aim to undertake new projects in the years ahead. It is gratifying that countries such as the UK, Japan, and Canada are following our example.

Ladies and gentlemen,

I am pleased to note a positive development also as regards co-operation on safety at sea and the prevention of oil spills. The rapid and very substantial increase in the transport of oil from Russia through Norwegian waters to markets in the West, has led to environmental concerns in this country.

However, these concerns have been met with a constructive response on the part of Russian authorities, and a positive dialogue has been initiated between the ministries concerned.

From our perspective, it is of crucial importance that we succeed in establishing standards and routines of co-operation, which may contribute to making maritime oil transports as environmentally safe as possible.

Ladies and gentlemen,

The Norwegian Foreign Ministry’s "Russia Strategy" from 2000 remains an important foundation for the development of Norway’s relations with Russia. Recently, it has been supplemented by the Joint Declaration from President Putin’s visit in November last, as well as by the second Kirkenes Declaration of 2003 on co-operation in the Barents Region, and the results of the meeting between Prime Ministers Bondevik and Kasianov in that context.

The Russia Strategy underlines the importance of cooperation with Russia in areas such as the management and exploitation of resources, economic co-operation and the stability of the North. Some time ago, I coined the phrase that 2002 was the year of Russia in Norwegian foreign policy. That was at the same time a correct and a false statement. On the one hand, last year was without question one of the most important in the evolution of the bilateral relationship between our two countries. On the other hand, every year is a Russia year in our foreign policy. That is how important the relationship is.

One of the most important conclusions of our Russia Strategy is that " The challenges we are facing in our relations with Russia can only be met through long term efforts." We must think and act in a long-term perspective, and remember that the modern, mature relationship between Norway and Russia is still young. The period when we stood on opposite sides in the Cold War belongs to the past, but it is not a distant past.

But we have faith in a stable and prosperous future for Russia, shaped by the generations who are growing up and forming their world view today and in coming years. I would like to wish the Russian participants here today all the best. I have no doubt at all that we will meet them again as future leaders in Russia.

Thank you for your attention.