P Mlambo-Ngcuka on meeting Russian Prime Minister M Fradkov

19 March 2007

Deputy President Mlambo-Ngcuka:

Once more, welcome Prime Minister and your esteemed delegation. We have
already had extensive discussions between myself and the Prime Minister and our
delegations. The areas we focused on are areas of co-operation in high-tech
areas: nuclear co-operation, space technology, the enhancing of co-operation of
South African institutions involved in these areas.

We have also identified opportunities for co-operation in the defence
industry and South Africa has expressed a keen interest in co-operation in
astronomy. We are also co-operating in the mining arena. We already have
examples of co-operation in these areas.

We are interested in, outside of the economic arena, enhancing co-operation
in the cultural, sports and human resource and development fields. Human
resource development has been stalled seeing that we did not have an agreement
on the recognition of qualifications. In this regard, we are busy finalising
our National Qualifications Framework (NQF) which will facilitate the
completion of this agreement. We then expect that many more South African
students will have the opportunity to benefit from training in Russian
institutions.

Prime Minister Fradkov:

I would like to add to what the Deputy President has said. Our consultations
were very comprehensive. Both sides demonstrated much interest in the
discussions.

We have reviewed the current level of co-operation between both countries,
the practical results of those agreements signed between Presidents Mbeki and
Putin in South Africa in September 2006, and touched upon the results of the
meeting of Inter-Governmental Committee on Trade and Economic Co-operation
(ITEC) which took place a month ago in Pretoria.

Both parties expressed satisfaction with the current results and outlined
targets to be achieved in the near future. In May 2007 a group of South African
businessmen will visit Russia to discuss in more detail the potential for
expanding business-to-business relations. During the second half of 2007 we are
planning to hold an exhibition in South Africa of Russian products. I also
believe that through joint ventures we will be able to implement major projects
in those topical areas mentioned by the Deputy President.

Questions and answers

Question: Deputy President, I understand what Russian companies are looking
for in South Africa. Could you kindly elaborate on what South African companies
are looking for in Russia?

Answer: South African companies are outward investors. Some South African
companies are already investing in Russia - in gas and oil projects, amongst
others. Companies are also interested in accessing technological skills. In
this regard, part of the interest is in technology transfer.

Russia is also a market, so we are interested in selling to this market.
South Africa has products to sell - vehicles, chemicals - the volumes are still
relatively low but can be increased through selling some of these products. We
would like to understand the market better.

Question: Prime Minister Fradkov, the trade volumes between South Africa and
Russia are quite low. Do you plan to stimulate these in any way? What are your
expectations of the business council later today?

Answer: Everything we do at this stage is aimed specifically at increasing
economic co-operation to new heights. I am talking firstly about the priority
areas like energy co-operation and nuclear energy co-operation in particular.
We are already engaged in prospecting for the appropriate resources in South
Africa and our physicists and scientists are co-operating quite extensively
with each other.

There are also a number of Russian companies active in the South African
market - Norilsk Nickel, Aton Capital, Colliers International, Rusimport,
Transneft, MorPort, Sual, Lukoil, Interfinance Developments and Crystal Diamond
Company. This list is by no means exhaustive. For example, Renova is currently
developing magnesium deposits in South Africa.

We are interested in promoting business-to-business links and it is for this
reason that we have initiated the South Africa-Russia Business Council. This is
also a task for ITEC and the business community to drastically increase
business co-operation.

Question: Prime Minister Fradkov, I understand you discussed the peaceful
use of nuclear energy with regard to Iran. Was this matter discussed
extensively? What are your views on this matter?

Answer: (Prime Minister Fradkov) We did not discuss Iran. It would seem to
me however, that South Africa and Russia have common views on a many global
issues and this is no different.

We are both in agreement that the matter should be dealt with within the
International Atomic Energy Agency (IAEA) safeguards.

(Deputy President Mlambo-Ngcuka) I concur with the Prime Minister.

Question: Deputy President, will any agreements, or do you foresee in the
future, any agreements being signed in nuclear co-operation, mining and
gas-to-liquid or coal exploration?

Answer: (Deputy President Mlambo-Ngcuka) We have signed an agreement on
co-operation the field of water.

There is also an agreement in place between both countries - the Treaty of
Friendship and Partnership. This is a similar agreement to the one signed
between South Africa and other countries where we investigate cultural and
socio-economic co-operation.

There will however be agreements signed by the private sector. I think they
would like to announce these themselves when they do the signing this
afternoon.

It does not mean that there is no activity at state level just because we
are not signing any agreements. We currently have co-operation programmes in
the fields of platinum exploration, astronomy, science, technology and
space.

We also have business co-operation projects in place. Our co-operation with
the Russian Federation is therefore very extensive.

(Prime Minister Fradkov) We also have co-operation in the banking area.
Today we witness an agreement between a major bank in Russia and Standard Bank.
This will result in the creation of a joint venture through which we will be
able to create new financial services for consumers.

Issued by: Department of Foreign Affairs
19 March 2007