Medvedev: Russia is ready to restore normal relations with the European Union

Medvedev: Russia is ready to restore normal relations with the European Union

MOSCOW, January 13. Russia is ready to restore normal relations with the European Union, said Prime Minister Dmitry Medvedev.

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“We are ready to resume normal interaction with the member States of the European Union”, – said the head of the Cabinet of Ministers at the Gaidar forum, organized by the Ranepa and the Gaidar Institute. He explained: “Europe is our closest neighbour and its major economic partner, and our trade still amounts to hundreds of billions of euros, despite the regrettable factor the sanctions.”

“I’m sure that was said repeatedly that in the end common sense will prevail, the sanctions remain in the past, and relations between Russia and the EU will return to normal”, – said Medvedev.

However, in his opinion, “necessary steps on the basis of economic logic, taking into account the objective interests of both European and Russian business”.

Relations with the SCO and ASEAN under the WTO rules

Dmitry Medvedev said that Russia will build advanced economic relations with the leading countries of the SCO and ASEAN, will act according to the rules of the WTO.

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“Last year gradually increased non-commodity exports and in physical and in value terms. To support it, we need to fully unleash the integration potential of the Eurasian economic Union (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan), to negotiate free trade areas with the leading foreign economic partners of the formation of advanced economic partnerships within the SCO and the ASEAN member countries”, – said the head of the Cabinet of Ministers. He stressed that “the work in this direction will be based on universal rules of the WTO”.

“Conditions are tough in the economy dictates policy and geostrategy”

Policy and geostrategy today the world economy dictates new rules; recent negative example is the pressure on the IMF on the issue of Ukrainian debt to Russia, said Medvedev.

“The situation is aggravated by the fact that now the conditions in the economy rigidly dictates policy and geostrategy, the existing rules are ignored or rewritten, sometimes because of political reasons, as was done not so long ago the IMF in Ukraine”, – said the Prime Minister. According to him, is also manifested in economic sanctions against Russia, proclaimed by individual countries, “that, in principle, radically undermines market institutions, e.g. the WTO.”

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Increasingly political motives intertwine in the field of competition, Medvedev said, for example, with the introduction of penalties. “This tool is used against those who are not takes the decision of one of the participants of economic processes, albeit the biggest”, – said Medvedev.

The Prime Minister also pointed to “the second advent of globalization, when the economic decisions taken in one country, immediately affect situations in other countries without any time lag, as it was before.”

Medvedev said that this new global backdrop worsened structural problems of the Russian economy. “Obvious shortage of the sources of economic growth and export revenues, in addition to the commodity sector,” he said. The difficulties of the past year, he said, has resulted in a reduction of production, reduction of business and investment activity, as well as to falling incomes. “Many have become poorer, and hurt the middle class, and this is perhaps the most painful consequences of the economic shock vulgar,” Medvedev said.

In General, the Prime Minister noted that before the world’s economies are structural problems – as the developing countries and developed before resource countries and consumers of energy. As an example, he cited the oil market.

“In the oil market by the end of 2015, a proposal ahead of demand, but production continues to grow. Traditional mechanisms of coordination of prices within OPEC do not restore the balance, and even the situation in the middle East, which even decades ago revived the oil market, now almost on him had no effect,” he said.

Gaidar forum. Text translation