Norway and Russia – Neighbours in the High North.

Ladies and Gentlemen,

I greatly appreciate this opportunity to address this distinguished audience and to share with you a Norwegian perspective on European security and the relations between Norway and Russia - two close neighbours in the High North.

I would like to pay a special tribute to Ambassador Fokin – a friend of Norway - for organising this session. As ambassador to Norway he witnessed and contributed to the rapid development of our bilateral relations in the 1990s.

Norway and Russia have lived in peace for a thousand years. Geography made us neighbours.

But good neighbourhood is never given. It has to be built step by step. Building close relations with Russia is a key priority of my Government.

Looking back, we see that the nature of our relations have been largely defined by the broader context of European security and co-operation. During the cold war, our border was more like a frozen dividing line on a split continent. After the cold war, our common border again means opportunities and interaction.

From my perspective, a better context for developing our relations has never been offered. It is now up to our political determination to take advantage of it.

Europe is no longer a theatre for potential large-scale military confrontation, but rather a theatre for working together, taking advantage of the potential of our people and pooling our efforts in confronting common threats.

Gradually we are defining new structures to reflect these needs.

The greatest challenge to our common security to-day stems from new types of conflicts – conflicts rooted in ethnic and religious rivalries, in economic and social degradation.

The international community can only manage such conflicts if we work together.

The NATO-Russia co-operation has proved to be essential in the Balkans. Here, Norwegian and Russian troops stand together to promote peace.

I will emphasise the Partnership for Peace exercises and encourage Russia to participate.

A few weeks ago, first in Stockholm, then in Moscow, Russia’s President met with EU leaders to pave out a new direction for EU-Russia relations. Norway actively supports this closer collaboration.

It mirrors our own objectives for co-operation with Russia.

The larger picture is of a Europe gradually growing together. It is of a European Union representing the web of European political will and commitment. It is of a gradual enlargement of institutions such as NATO and the EU, not enlarging to confront any state or group of states, but enlarging to provide stability and a framework for democracy and economic development. And it is a picture of a Russia expanding its ties and relations with Europe.

As part of this larger framework, Norwegians and Russians are linked together by increasingly closer contacts across our common border.

Our national interests are not always common. This is only natural also between good neighbours.

But far more unites us than parts us.

And if we do not agree we will speak frankly, always in search of mutually acceptable solutions by way of constructive dialogue.

We listen if Russia has concerns about Norwegian positions. And we voice our concern when we feel the need to do so.

Today, I have shared with Russian leaders our anxiety about the situation in Chechnya, in particular on human rights and the fate of thousands of displaced persons.

Russia is a member of the European family and of the Council of Europe. I urge Russian leaders to live up to the expectations and obligations that follow.

Our Norwegian-Russian agenda is a broad one. This has been clearly demonstrated during the talks I have had today with President Putin and Prime Minister Kasianov.

Relations with Russia have over the past decade been defined anew.

I support and admire the changes of a democratic Russia.

Russia’s road towards democracy, the rule of law and a market economy has been the ticket to her integration into broader European co-operation.

In Northern Europe we now value forms of co-operation unthinkable until a decade ago.

The Barents region, the Council of the Baltic Sea States, the Arctic Council, the Northern Dimension of the European Union are all fundamentally new ways of political contact between Western Europe and Russia.

These are all the fruits of a democratic Russia.

Europe has changed.

This has allowed my government to propose comprehensive changes in Norwegian defence.

The NATO alliance gives the ultimate guarantee for Norwegian security. The historical improvements in the broad European security outlook allow us to follow the same general defence reform path as most other countries.

We are making the structure of the Norwegian armed forces more effective. Our forces will be modernised and better equipped.

We will continue to build smaller, flexible, mobile forces capable of rapid reaction. They will be located throughout the country - trained also for participation in complex operations abroad, such as the KFOR.

Norway has throughout the cold war period attached importance to preserving low tension in the North.

That is why we never have allowed in peacetime either permanent bases on Norwegian territory or the deployment of nuclear weapons.

The fundamental purpose of our policy remains the same.

But in the new Europe, it is only natural that we evaluate these arrangements in the light of an environment based on trust and co-operation.

We now allow smaller allied and other foreign units to train in Finnmark. We emphasise exercises in the framework of the Partnership for Peace programme. We now welcome Russian participation in common exercises in the North of Norway.

Let me be clear.

As before, we do not permit any foreign military activity on our territory that could reasonably be interpreted as being provocative towards any neighbour.

Co-operation and trust is to a great extent determined by the perceptions we have of each other.

We do not perceive Russia as a military threat. Our security and defence policy aims at creating contact and co-operation.

This is a key reason why we attach such importance to the bilateral military co-operation with Russia. Together, we will increase mutual trust and understanding between the armed forces of our two countries.

Yesterday, the Norwegian minister of defence met his colleague Sergey Ivanov here in Moscow. They had an open, interesting and fruitful discussion.

The importance of personal contacts was clearly demonstrated during the tragic accident of the Russian submarine "Kursk" last August. The Commander of the Armed Forces in Northern Norway and the Chief of the Russian Northern Fleet had exchanged visits and established a personal contact through a direct telephone line. This was key to our collaboration during the conduct of the rescue operation.

One lesson learnt from "Kursk" was the need for further co-operation between Norway and Russia on search and rescue operations in the Barents Sea.

Accidents may happen again, both on the Norwegian and Russian side. We will have to join forces to manage such situations.

Prime Minister Kasianov and myself signed a memorandum to this effect during his visit to Norway last September.

Since then, we have proceeded to improve our bilateral search and rescue co-operation. The first round of expert talks, hosted by your ministry of defence, will take place here in Moscow on 28 June.

Without a sustainable environment, many other efforts are in vain. For decades, the cold war forced us to approach the local environment in the High North separately. We now have the opportunity to approach these issues in their right context – a context of common concern.

We both have an obligation to protect the vulnerable environment of the North.

It is imperative that we work together to this end. On the military side, a trilateral co-operation has been established – the Arctic Military Economic Co-operation AMEC – between Norway, the United States and Russia.

In the civic sector, Norway and Russia stand at the threshold of a major step forward in the protection of the environment.

We will now start the modernisation of the nickel plant in Pechenga close to our common border, an idea launched by the Norwegian government more than ten years ago.

This plant alone emits some 150 tons of sulphur a year. Norway’s total emissions of sulphur amount to 30 tons. We will now be able to reduce Pechenga’s emissions to a mere 12 tons.

As a young politician I visited Pechenganikel in 1988 to meet with an emerging environmental movement on the Kola Peninsula. Emissions from the nickel plant have destroyed the soil in the region. Norway has been severely affected.

This project will be a milestone in the environmental co-operation between our two countries. My country is committed to contributing up to 270 million Norwegian kroner, approximately 30 million US dollars, and to join the Nordic Investment Bank in paving the way to a modernisation of the plant. If we succeed, the local environment will benefit. Emissions of sulphur, heavy metals and dust will be reduced by up to 90 per cent.

Nuclear waste is another area of national concern in my country.

We need to increase the safety level at nuclear facilities. The handling and storing of spent nuclear fuel and radioactive waste in Russia will have to be improved.

Our co-operation carries fruits. A treatment facility for liquid radioactive waste will open in Murmansk later this week. The completion of this facility will enable Russia to sign the London Convention on the Prevention of Marine Pollution.

This I welcome.

Some weeks back, a Norwegian-Russian delegation visited the Andreyev Bay on the Kola Peninsula, a location for storage of spent nuclear fuel from submarines, only a short distance from the Norwegian border.

New projects have been identified, but the challenges are enormous and expertise and financing from other countries are needed.

There is a long way to go. Russia holds the prime responsibility of taking properly care of nuclear waste on its soil. Norway is ready to assist and stand by Russia in this effort. The European Union is also engaged, as has been the United States.

We are ready to assist. And as close neighbours and partners we will also speak our mind.

By the end of this month, Russia and her partners, including Norway, have agreed to sign an agreement on a multilateral nuclear environmental programme in the Russian Federation.

I am convinced that this document will mobilise us all to contribute to the safe handling of spent nuclear fuel and radioactive waste.

Norway will contribute substantially to this work.

Let me address an area of concern.

The State Duma has recently passed legislation that will lead to the import for storage of spent nuclear fuel from other countries.

The project raises a number of serious questions on storage capacity and safety.

Norway also attaches importance to the issue of safe maritime transportation of such material. Ship traffic to Northwest Russia passes along the Norwegian coast.

The main focus should be on solving the problems with the existing spent fuel and radioactive waste in Russia.

In this field we are ready to continue our assistance.

New civic issues come on the agenda – issues that have a real meaning for people’s quality of life. The modern concept of security policy encompasses many aspects, including health and the environment.

For several years we have made progress on environmental issues.

In recent years we have put health on the agenda. Last year, I initiated the creation of a task force on fighting infectious diseases in the Baltic Sea region. All the prime ministers of the Baltic Sea states as well as the President of the European Commission endorsed this work. A plan of action is now being implemented.

We are prepared to continue to take the lead in this common task. We look forward to co-operating closely in this field with the Russian chairmanship of the Council of the Baltic Sea States.

In the field of managing the joint Norwegian-Russian fish stocks, we have a longstanding, close co-operation and obvious common interests.

The Barents Sea is a valuable resource to both of us. What we do to-day in terms of managing the marine environment has a bearing for future generations.

We have established a supervisory organ for the management tasks, the Mixed Norwegian-Russian Fishery Commission.

Norwegian and Russian marine scientists have worked closely together since the 1950s. During the most difficult years of the cold war, Norwegian and Russian experts maintained a constructive dialogue on these important issues.

This capacity to make wise decisions will now be put to the test. Stocks have come under pressure from catches made by both Norwegian and Russian fishing vessels, as well as by other nations.

Over the last years we have made decisions on reducing the quotas. It is painful, but absolutely necessary.

We now learn from our experts that the threat to the stocks is more serious than before. To-day, I have called President Putin’s attention to this fact. This is a challenge to the capacity and resolve of joint Norwegian-Russian management. If we fail to make the right decisions we risk dramatically hurting the stock of one of the most valuable fish resources in the world.

Look what happened at the Great Banks off Newfoundland. For centuries among the richest cod fisheries in the world, these waters are now empty with a moratorium on harvesting.

Research plays an essential part in the work for sustainable exploitation of the stocks.

Since 1995, severe restrictions apply for Norwegian research vessels in the Russian economic zone. This limits their possibility to carry out important research.

This is unfortunate. It may lead to quotas being determined without the necessary, complete picture of the quantity of the stocks.

Such limitation of research activity reduces the credibility of the management regime.

I would welcome the following:

Together with Russian authorities we should find a way to allow greater freedom of research in Russian waters. We on our side will continue to welcome Russian research in our zone.

Fish is a main link between Norway and Russia. More than 60 per cent of my country’s exports to Russia is fish and fish products.

Russian trawlers land substantial quantities of cod and haddock for processing at Norwegian processing plants.

Fish and the fish industry represent a common interest to both Norway and Russia. Jobs are created in both countries. Let us take good care of them.

The economic ties between Norway and Russia are on the rise. Trade is picking up and increased last year by 34 per cent.

I am encouraged by the growing number of Norwegian companies that are active in Russia.

Telenor’s 350 million US dollar investment in Russian telecommunications is by far the largest Norwegian investment in Russia. It places Telenor as one of the major foreign investors on the Russian market.

It speaks volumes of the faith of Norwegian business in the future of the Russian market. It is a good sign for Russia as well as for our relations.

A number of other sectors are of interest to Norwegian companies. The joint Norwegian-Russian Technology Forum, which I had the pleasure of opening this morning, clearly demonstrated the keen interest from Norwegian as well as Russian business to engage in joint projects.

While many companies report that they intend to invest in Russia, some are reluctant.

Their concerns need to be addressed.

Their concerns are often linked to the lack of a predictable investment climate.

Today, as our companies see it, the challenge is to make the newly-established legal and financial framework in Russia work effectively.

Furthermore, Norway strongly supports Russia’s membership in the World Trade Organisation. Membership will in a major way contribute to the integration of Russia in the international economy.

Norway and Russia are key European oil and gas producers and exporters.

Second only to Saudi Arabia, our countries are the largest oil exporters in the world.

Two thirds of the consumption of natural gas in Europe is supplied by our two countries.

As major producers and exporters of oil and gas, Norway and Russia are competitors in the same markets. Yet, we also share common interests on energy issues.

It is in our interest that natural gas is considered a reliable source of energy and that the use of gas in Europe is increasing.

Not least, natural resources should be exploited with due consideration to our fragile Northern environment.

We will further explore a close and open dialogue with Russia on energy policy.

Today, I have called the attention of Russian leaders to the potential of Norwegian petroleum companies and their future activity in your country.

In the 1590s, Dutchman Willem Barents explored the areas we now know as the Barents Sea. Little did Barents know about the great resources of these waters.

Norway and Russia have not reached a solution on the division of the continental shelves of the Barents Sea.

Negotiations have been under way since the early 1970s. Many issues have been agreed. Yet, we have still not reached a final agreement.

A final agreement on a delimitation line in the Barents Sea will open new opportunities.

We can then start our co-operation on exploiting the rich petroleum resources in what to-day still is a disputed area.

We are both determined to find a mutually acceptable solution. The negotiations are conducted in a constructive atmosphere.

The great explorer Willem Barents ventured even further north. In 1596, he spotted a vast archipelago in the High North. He called it Spitsbergen.

The Paris Treaty of 1920 gives Norway sovereignty over Spitsbergen, or Svalbard, and its surrounding waters.

Norwegian legislation applies at the archipelago. Yet, the parties to the Treaty have certain rights, such as the right of free access and the right to economic activity.

Further, Svalbard shall not be used for "warlike purposes," to quote the Treaty.

Coal mining is a mainstay of the Norwegian and Russian communities of Svalbard. Norway’s duty is to secure the rights of the Treaty parties to conduct economic activity. And it is our duty to protect the Arctic environment.

These two concerns are not always easy to unite.

In case of conflict between economic and environmental concerns, substantial weight must be attached to the protection of the environment.

The new legislation on protection of the nature at Svalbard is not directed against any party to the Treaty, on the contrary it is meant to secure and protect a vulnerable Arctic environment and applies equally to all.

During the hearings, Norwegian lawmakers on several occasions heard Russian points of view on the new law, and took them into account.

I am confident that in the implementation of the new legislation Trust Arktikugol will be able to develop new mining projects in a satisfactory manner, without harm to the unique Arctic nature.

Norway welcomes Russian activity on Svalbard. And we welcome continued Russian presence and Russian activities in established as well as in new areas.

Ladies and gentlemen,

The relations between Norway and Russia are as diverse as never before. The political contacts are frequent at all levels.

Before 1989, less than a thousand people each year crossed our common border in the North. Today, tens of thousands cross the border. They are heading for business, tourism, education or culture.

For centuries Norwegians and Russians have lived peacefully side by side. As the centenary of Norway’s independence approaches, we will together organise a large exhibition telling the story of two neighbours enriching and inspiring each other.

The exhibition will look back in time, but is dedicated to our common future.

The Norwegian Nobel Prize-winning writer Knut Hamsun wrote after his visit to Moscow in 1903 about the spires and cupolas, the gold and the blue of the Kremlin, the vast splendours of the place.

This, I am sure, many more Norwegians will come and see.

My government has worked out a strategy for further developing our relations in all fields of interest. This strategy has been met with positive reactions by Russian authorities.

The strategy focuses on common interests – in the fields of environment, nuclear safety, resource management, energy, security at sea, culture and science.

We focus on openness, a balanced approach, predictability and frequent contacts at all levels.

This is the guide to the future.

Such is the foundation for our relations.

Thank you for your attention.