South Africa
29 August 2006
South African President Thabo Mbeki will host his Russian counterpart
President Vladimir Putin on the first ever state visit by a Russian Head of
State to South Africa scheduled from Tuesday, 5 September 2006, to Wednesday, 6
September 2006, in Cape Town.
President Thabo Mbeki will host President Putin within the context of South
Africa's commitment to consolidate the African agenda through, among others,
the promotion of North-South co-operation. In this regard, the Russian
Federation is one of five permanent members of the United Nations Security
Council and current chair of the Group of Eight (G-8).
President Putin, in his State of the Nation Address in May 2006, indicated
that the Russian Federation had prioritised the consolidation of relations with
Africa.
Issues on the agenda of discussions between Presidents Mbeki and Putin on
Tuesday, 5 September 2006, 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)
* promotion of the African agenda including a follow up of the G-8 Summit,
regional developments in Southern African Development Community (SADC),
conflict resolution and peacekeeping in Sudan and Cote d'Ivoire and
post-election Democratic Republic of Congo
* the non-proliferation and peaceful use of nuclear energy with respect to the
situation in Iran
* the Middle East since Russia is a member of the Quartet and co-sponsor of the
roadmap
* the reform of the United Nations ahead of the General-Assembly scheduled for
later in September.
It is anticipated that the following agreements will be signed during the
visit:
* Treaty of Friendship and Partnership between the Government of the
Republic of South Africa and the Government of the Russian Federation
* Agreement on Co-operation in the Exploration and Use of Outer Space for
Peaceful Purposes
* Agreement on the Continued Airworthiness between the Civil Aviation
Authorities of the Republic of South Africa and the Russian Federation;
* Agreement on Co-operation in the Field of Healthcare and Medical
Sciences;
* Agreement between South Africa and the Russian Federation on Co-operation in
the Sphere of Water Resources and Forestry
* Agreement on the Reciprocal Protection of Intellectual Property Rights
related to Defence-Industrial Co-operation
* Protocol on Co-operation in the Fields of Arts and Culture between the
Governments of the Republic of South Africa and the Russian Federation.
While in South Africa President Putin is also expected to address
Parliament, receive a courtesy call from Deputy President Phumzile
Mlambo-Ngcuka, participate in a roundtable business meeting and visit Robben
Island.
President Putin is expected to depart from South Africa on Wednesday, 6
September 2006.
Economic bilateral relations
Trade relations between both countries
2005 (Jan-Sept)
South African imports: US$18,2 million
South African exports: US$106,5 million
2004
South African imports: US$9,00 million
South African exports: US$130,03 million
2003
South African imports: US$6,93 million
South African exports: US$112.68 million
The bulk of South African (SA) 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 SA exports to Russia. The major import from Russia, accounting
for over 65% of SA 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 their 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
totalled 8 549 in 2002 and decreased slightly for the years 2003 to 7 698 and
2004 to 7 473 respectively. The number of Russian tourists is 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 for South Africa, 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. The demand for grapes has been booming in 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 BEE 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.
South African investments in Russia
The SA multinationals Anglo American, Standard Bank, De Beers, JCI,
Barlowworld, Capespan and Bateman have substantial interests in Russia. In
addition, SAB/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.
In March 2004, the Russian company, Norilsk Nickel bought 98.5 million
common shares, or 20% of the South African gold producer Gold Fields for $1,16
billion. Norilsk Nickel is now the world's largest producer of the nickel and
palladium group of metals, accounting for 18% of world nickel production, 13%
of cobalt, three percent of copper, over 50% of palladium, 14% of platinum and
15% of world gold production. It should be noted that Norilsk Nickel announced
in March 2006 that it plans to sell the said shares bought from Gold
Fields.
During April 2004, the Director-General of the Department of Minerals and
Energy led a wide-ranging SA business delegation to the Russian Federation with
the objective to explore prospects for joint ventures and to outsource capital,
expertise and resources in the oil, gas and minerals sectors. The following
Black Economic Empowerment (BEE) companies and government institutions held
constructive consultations with their Russian counterparts: PetroSA,
Mvelaphanda Resources, Pan African Energy Resources, Pelewan and Lazig, Sekoko
Resources, Afro Resources, Mineralco, Randgold and Exploration, Phikoloso
Mining and Global Eagle Strategic Empowerment Alliance Systems.
SA's 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 or 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.
Media programme for State Visit to South Africa by Russian President
Vladimir Putin
Tuesday, 5 Wednesday, to 6 September 2006
To be confirmed: arrival of media for photo opportunity on arrival of
President Vladimir Putin
Venue: VIP Lounge (between Domestic and International Terminals) Cape Town
International Airport Cape Town
Arrival of Russian President Vladimir Putin
Media in attendance for photo opportunity
09h00: Arrival of media ahead of official welcoming ceremony in honour of
President Vladimir Putin
Venue: Tuynhuys Cape Town (media to arrive through visitors centre, 120 Plein
Street)
10h00: Arrival of Russian President Vladimir Putin, to be received by
President Thabo Mbeki
Bilateral discussions between President Thabo Mbeki and Russian President
Vladimir Putin
11h15: Arrival of media ahead of joint press conference by President Thabo
Mbeki and Russian President Vladmir Putin
12h10: Signing of Agreements
Joint press conference
14h30: Russian President Vladimir Putin to hold discussions with Speaker of
the National Parliament Baleka Mbete and Chairperson of the National Council of
Provinces Mninwe Johannes Mahlangu
16h00: Deputy President Phumzile Mlambo-Ngcuka to pay courtesy call on
Russian President Vladimir Putin
19h30: Media arrive for photo opportunity ahead of official dinner hosted by
President Thabo Mbeki in honour of Russian President Vladimir Putin
20h00: Official dinner hosted by President Thabo Mbeki in honour of Russian
President Vladimir Putin
Media in attendance for photo opportunity and toast remarks
Date: Wednesday, 6 September 2006
09h00: Presidents Mbeki and Putin to participate in roundtable business
meeting
11h25: Russian President Vladimir Putin to visit Robben Island
12h30: Russian President Vladimir Putin to visit Cape Point
Note:Media will not be allowed access to the events unless accreditation has
been received. Kindly indicate which events you will be covering as
accreditation will be specified.
Please respond to:
E-mail:Pillaim@foreign.gov.za
Cell: 082 389 3587 with your name, identity number, organisation, function
(cameraman, scribe, etc)
Closing date for accreditation:
Thursday, 31 August 2006, at 14h00
Enquiries:
Manusha Pillai
Cell: on 082 389 3587
David Hlabane
Cell: 082 561 9428
Issued by: Department of Foreign Affairs
29 August 2006
Source: SAPA
