counterpart
15 March 2007
South African Deputy President Phumzile Mlambo-Ngcuka will host her Russian
counterpart Prime Minister Mikhail Fradkov on an official visit to South Africa
from Saturday to Monday, 17 to 19 March 2007. In this regard, Prime Minister
Fradkov will visit Cape Town and Pretoria.
Deputy President Mlambo-Ngcuka will host Prime Minister Fradkov within the
context of expanding South Africa's strategic partnership with the Russian
Federation as a member of the Group of 8 (G-8) and United Nations Security
Council.
South Africa-Russia relations were significantly consolidated by the State
visit to South Africa by President Putin in September 2006 during which
Presidents Thabo Mbeki and Putin signed the Treaty of Friendship and
Partnership between the Republic of South Africa and the Russian
Federation.
Accordingly, Prime Minister Fradkov's visit comes as a follow up from the
Presidential visit of President Putin to South Africa and presents an
opportunity for South Africa and Russia to consolidate the implementation of
the Friendship Treaty.
Issues on the agenda of discussions between Deputy President Mlambo-Ngcuka
and Prime Minister Fradkov on Monday, 19 March 2007, are expected to include,
among others:
* the status of bilateral political and economic relations between both
countries including endeavours to promote economic relations through the
Intergovernmental Trade and Economic Committee (ITEC)
* bilateral relations based on the Treaty of Friendship and Partnership
* promotion of the African agenda, regional developments in Southern African
Development Community (SADC), conflict resolution and peacekeeping in Sudan and
Cote d'Ivoire and post-election progress in the Democratic Republic of
Congo
* the non-proliferation and peaceful use of nuclear energy with respect to the
situation in Iran
* multilateral co-operation with particular reference to co-operation by South
Africa and Russia in the United Nations Security Council.
It is expected that an Agreement between South Africa and the Russian
Federation on Co-operation in the Sphere of Water Resources and Forestry will
be signed on conclusion of discussions between Deputy President Mlambo-Ngcuka
and Prime Minister Fradkov, by the Minister of Water Affairs and Forestry,
Lindiwe Hendricks and the Minister of Natural Resources of the Russian
Federation, Yury Trutnev.
Great progress had been made in strengthening bilateral relations between
the two countries under the auspice of ITEC, the sixth session of which was of
held in Tshwane on 21 and 22 February 2007. The outcomes of the committee which
is co-chaired by Minister Dlamini Zuma and the Minister of Natural Resources of
the Russian Federation, Yuri Trutnev, indicated that implementation of
agreements through the committee is an area which would be focused on, as the
framework for co-operation has already been established.
The Joint Business Council between the two countries was also established
during the State Visit of President Putin. The first interactive meeting
between members of the Joint Business Council is scheduled to take place during
the visit of Prime Minister Fradkov to South Africa.
Prime Minister Fradkov will be accompanied by the Minister of Natural
Resources of the Russian Federation, who is also the co-chairperson of ITEC,
Yury Trutnev and a business delegation. While in South Africa Prime Minister
Fradkov is also expected to pay a courtesy call to President Thabo Mbeki.
Economic Bilateral Relations
South Africa's trade with Russia does not reflect its potential and leaves
much room for expansion. The establishment of the Joint South Africa-Russia
Business Council is now the means to achieve greater trade and economic
co-operation between the business sectors of both countries.
Trade Relations between both countries
2005
* South African Imports: US$629 047 000
* South African Exports: US$449 274 000
* Total: US$1 078 321 000
2006
* South African Imports: US$264 392 000
* South African Exports: US$155 555 000
* Total: US$419 950 000
The bulk of South Africa exports are made up of vehicle engines (18,8% of
exports); machines and mechanical appliances (14%); fresh grapes (13,8%);
flat-rolled products or iron (10%); pears (6,8%); peaches (3,4%); amounting to
almost 70% of South Africa exports to Russia. The major import from Russia,
accounting for over 65% of South Africa imports, is made up of the nickel group
of minerals.
The Russian Federation adopted a Decree in March 2003, following South
Africa's recognition of Russia as a market economy in support of World Trade
Organisation (WTO) membership, to include South Africa in a list of developing
countries that would enjoy preferential trade tariffs and duties with regard to
exports to Russia.
Bilateral relations also expanded significantly under the umbrella of the
Intergovernmental Trade and Economic Committee (ITEC) between South Africa and
the Russian Federation. Strategic direction and a structured and disciplined
policy framework have resulted in substantive action taken by the respective
governments in the strategic minerals and energy sectors through inter alia the
establishment of a joint task force on minerals in support of Black Economic
Empowerment objectives.
Solid progress in the field of Science and Technology relations, especially
in terms of the Presidential policy objective of establishing South Africa as a
key player in international astronomy and deep space research, also
characterise the relationship.
Russian tourists at the high end of the market visiting South Africa grew by
42% in 2006.The number of Russian tourists are comparable to those from Greece
and Argentina. The number of South Africans visiting Russia is growing
steadily.
The South African fruit exporting company Capespan now ranks Russia as its
single largest fruit export market surpassing the United Kingdom for the first
time last year. In 2004 Capespan exported fruit produce worth $20 million to
Russia out of a total trade of $56 million and presenting a 30% share of the
export market to Russia.
Apple and pear exports have registered an increase in their share of the
South African deliveries to Russia. Demand for grapes has been booming in
Russia, but South African producers have had to fight off competition from
South America and even Namibia.
South African investments in Russia
The South African multinationals Anglo American, Standard Bank, De Beers,
JCI, Barlowworld, Capespan and Bateman have substantial interests in Russia. In
addition, South African Brewery Miller has established a brewery in the Kaluga
Region, which represented a US$100 million investment, and their product,
Golden Barrel Beer, is highly successful in the local market. Standard Bank
also has a growing presence in Russia as well as SAPPI, Protea Hotels and Sun
International. Recently also the MIH Group which includes Digital Satellite
television (DStv), and M-Net also has investments in the Russian
Federation.
South Africa BEE entities also held meetings with prominent Russian entities
including Norilsk Nickel, Renova, Aton Capital, Colliers International,
Rusimport, Transneft, MorPort, Sual, Lukoil, Interfinance Developments and
Crystal Diamond Company. The meetings were constructive and fruitful and a
number of projects of mutual interest were identified. The BEE companies also
instituted reciprocal invitations for follow-up meetings in South Africa to
their Russian counterparts. The Director of Renova recently visited South
Africa and it can be expected that increased interaction between the respective
entities would lead to more substantial trade, economic and investment links
between South Africa and the Russian Federation.
The joint venture company, United Manganese of Kalahari (UMK), between Black
Economic Empowerment groups and the Russian Renova Group of companies, has been
established in order to co-operate on the prospecting, mining and processing of
manganese ore in the Kalahari basin.
Russia's largest steel maker, Evraz, recently said that it would decide
within less than a year whether to buy a bigger stake in Highveld Steel and
Vanadium. Evraz currently has a 24,9% share in Highveld. It is possible that
Evraz could buy Anglo America's Highveld share of 29,2 % in order to introduce
black investors to Highveld.
Enquiries:
Ronnie Mamoepa
082 990 4853
Media programme for official visit to South Africa by Russian Prime Minister
Mikhail Fradkov
* Saturday, 17 - Monday, 19 March 2007
Arrival of media for photo opportunity on arrival of Russian Prime Minister
Mikhail Fradko
Venue: Very Important Person Lounge, Cape Town International Airport, Cape
Town
Contact: Manusha Pillai on 082 389 3587
Arrival of Russian Prime Minister Mikhail Fradkov
Media in attendance for photo opportunity
Monday, 19 March 2007
09h00: Arrival of media ahead of official welcoming ceremony in honour of Prime
Minister Mikhail Fradkov
Venue: Union Buildings Amphitheatre, Pretoria
Media to arrive through Government Avenue
Contact: Manusha Pillai on 082 389 3587
David Hlabane on 082 561 9428
10h00: Arrival of Russian Prime Minister Mikhail Fradkov
To be received by Deputy President Phumzile Mlambo-Ngcuka
Media in attendance
Bilateral discussions between Deputy President Mlambo-Ngcuka and Prime
Minister Mikhail Fradkov
11h00: Arrival of media ahead of joint press conference by Deputy President
Mlambo-Ngcuka and Prime Minister Mikhail Fradkov
Venue: Union Buildings Amphitheatre, Pretoria
Media to arrive through Government Avenue
Contact: Manusha Pillai on 082 389 3587
David Hlabane on 082 561 9428
11h55: Signing of Agreements
Joint press conference
12h00: Media arrive for photo opportunity ahead of official luncheon hosted
by Deputy President Mlambo-Ngcuka in honour of Russian Prime Minister Mikhail
Fradkov
Venue: Presidential Guesthouse, Bryntirion Estate, Church Street,
Pretoria
Enter through Gate 9
Contact: Manusha Pillai on 082 389 3587
David Hlabane on 082 561 9428
12h35: Official luncheon hosted by Deputy President Mlambo-Ngcuka in honour
of Russian Prime Minister Mikhail Fradkov
Media in attendance for photo opportunity and toast remarks
14h00: Media arrive ahead of South AfricaâRussian Business Council
Meeting
Venue: Irene Country Lodge
Nellmapius Drive, Irene, Centurion, Pretoria
Contact: Manusha Pillai on 082 389 3587
Palesa Rachidi on 083 285 5972
15h00: Deputy President Mlambo-Ngcuka and Prime Minister Fradkov to address
South AfricaâRussian Business Council meeting
Order of proceedings:
* Opening remarks by the Programme Director
* Remarks by Deputy President Mlambo-Ngcuka
* Remarks by Prime Minister Fradkov
Kindly indicate which events you will be covering, and please bring press
cards
Issued by: Department of Foreign Affairs
15 March 2007
Source: SAPA
