OREANDA-NEWS. November 12, 2009. Vladimir Putin's address: Good afternoon, ladies and gentlemen,  I have just finished a meeting with Werner Faymann, the Federal Chancellor of Austria.

I would like to say from the start that we had a very candid conversation on practically all the issues that affect our relations. I think this is very important. I was very pleased that our conversation was businesslike and based on mutual trust.

We both agreed in our positive assessment of the current level of cooperation between Russia and Austria. Indeed, we do not have any particular political problems or disagreements. Cultural ties between our two countries continue to develop, and our business ventures are successful.

Needless to say, we paid much attention to our plans for our future work together. The global crisis has led to a certain decrease in trade between our two countries. We must work together to overcome this problem, and not only restore the former level of bilateral trade, (which was high; almost \\$5.5 billion), but also increase it. The main point is that we have every opportunity to do this.

It is no less important to diversify Russia's exports to Austria. Here we intend to use the Mixed Intergovernmental Commission on Trade and Economic Cooperation to its full potential. We have agreed that the Commission's next meeting will be in spring.

The Russian-Austrian Business Council, established to develop direct contacts between businesses, should also play a major role. The Federal Chancellor suggested setting up a presidium, a working group consisting of several business leaders, within the council. I think this is a good proposal, and we will implement it.

I would like to note that despite the reduction in trade, Austrian investment in the Russian economy has remained steady. By the beginning of this year, it amounted to almost four billion dollars. We welcome the efforts of Austrian businessmen to continue to expand their presence in the Russian market.

Energy cooperation, in particular, the future of the South Stream project, was a major topic of our talks. Up until now, Russia and Austria have been reliable and long-standing energy partners.

The Baumgarten natural gas hub, through which our gas is delivered to Europe, is well known. It is one of the biggest in Europe.

Russia and Austria are convinced that this new route is very important for ensuring energy supplies for European consumers, and for making them even more reliable.

Representatives of our two countries are now preparing a special bilateral agreement to carry out this project. The Federal Chancellor and I want this work to be finished as soon as possible.

Extending the Druzhba (Friendship) Pipeline is also bound to promote our energy cooperation. We discussed this idea in detail today. I am referring to the branch of the pipeline from Bratislava to the oil refinery in Schwechat, near Vienna. Our Austrian and Slovakian partners will work together on this project. This will require a certain amount of effort on our part as well as additional study, but we are ready to work together.

We have also discussed how our two countries can work together on infrastructure projects, such as extending the railway from Koshice to Bratislava, with access to Vienna, and building a logistics centre on the Danube. This project would expand Europe's transport corridors considerably.

Relevant government agencies in Russia and Austria have been instructed to expedite the preparation of a number of major bilateral agreements in areas such as crime prevention, scientific and technological cooperation, and mutual aid during natural and man-made disasters.

We will also do all we can to facilitate regional ties - this is a significant resource for building up relations between our two countries. Austria is one of our key partners in our dialogue with the European Union, and it goes without saying that we also touched upon this it today's talks.

Austria is a non-permanent member of the UN Security Council for 2009 and 2010, and this month it is chairing the Council. All this gives us more opportunities for cooperation on international issues.

In conclusion, I'd like to thank the Federal Chancellor for our productive work and the friendly and honourable atmosphere of today's meeting. I am pleased to give him the floor.

Werner Faymann (as translated): Thank you very much. Mr Prime Minister, ladies and gentlemen, I agree with everything Prime Minister Putin has said. Thank you very much for your invitation and the opportunity to discuss these issues openly and in detail. 

Prime Minister Putin has already mentioned that our mutual trade totalled over \\$5.5 billion in 2008. When speaking about their businesses in the Russian Federation, many companies and their representatives whom I met at the reception at the Austrian Embassy yesterday night pointed out the successful development of their businesses and progress of our economic cooperation in different sectors of the economy.

I would like to draw your attention to two or tree points. Mr Prime Minister, you have already touched on the first one: Russian natural gas accounts for 94% of Austrian gas imports. The Republic of Austria has abandoned the idea of building nuclear power plants and is betting on renewable energy sources, including hydroelectric, solar and wind energy. Therefore, we need a reliable partner to ensure stable energy supplies in the short and long term.

This applies to gas supplies. In this respect, energy security is critical to Austria. We believe that South Stream and other projects should not be mutually exclusive. This project's purpose is diversification of gas supplies, giving us a chance to increase energy security, ensuring reliable energy supplies.

Energy security is vital for manufacturing industries, since a lack of gas would mean we would have to make up for the missing energy. The European Union, Austria included, can last for a certain period using stored gas, for example while this issue is being negotiated. The gas from the Austrian reserves will suffice for three months. However, settling conflicts in advance is essential for us to ensure energy security and a stable economic development.

Another issue we discussed that I would like to highlight concerns Austrian Airlines. This company is very important for Austria, in particular Austrian business people. They need this airline to stay in close contact with their Russian partners, as well as with other foreign partners.

Railway projects are of great significance too, but we cannot do without airlines. Otherwise we'll be unable to ensure the long-term, dependable development of economic relations with our partners who use these airlines. This is a critical factor for us. 

I am pleased to say that the current contract allowing Austrian Airlines to operate in the Russian Federation was extended to February 1. This will enable us to coordinate all the legal aspects and negotiate in a calm atmosphere.

This goes to show that we can always find solutions to questions raised during open and sincere discussions. Thank you very much for this opportunity.

I hope that in the future the existing institutions that foster cooperation between our two countries, and maybe the Business Council Presidium, will allow us to address and discuss issues on the bilateral agenda effectively, and resolve them openly and promptly.

I was happy to hear about your eagerness to accept our invitation to visit Lech in March. I know that a prime minister's schedule is very tight.

Lech will host a European forum that will be attended by EU leaders and members of European commissions. We have invited you, Mr Prime Minister, to participate, and we are happy that you have agreed to come. It will be my pleasure to welcome you to Austria next year.