Interview on Ukrainian Television Channels UT-1, Inter and 1 4
October 27, 2004
Kiev, Ukraine
Интервью украинским телеканалам «УТ-1», «Интер» и «1 1»
26 октября 2004 года
Киев
VLADIMIR PUTIN: No, Ivan, there is no trap. When I was a student I had a friend from Ukraine, and when he didnt understand something he would ask me, what, have you lost your mind?
I can say that no, I havent lost my mind. Russia is moving over to this system of collecting indirect taxes not only with Ukraine but with all the CIS countries. The Russian budget will lose more than $1 billion as a result. But this is a deliberate step that we are taking because we see it as a modern means of taxation and economic interaction that will help reduce bureaucracy in our economic relations and increase overall trade. This will ultimately facilitate the flow of goods from one country to another and will lead to increased trade and, ultimately, to increased budget revenue. We are sure that the Russian budget will eventually benefit. Initially, the budget will lose out, this is true, but in the medium term, given the rate at which our economies are growing and with a growth rate of 13.4 percent, the Ukrainian economy is growing faster than the other CIS economies our specialists calculate that within the coming years we will only stand to benefit from this policy.
QUESTION: Lets now move to the international stage. How do you see the world order in the near future? Will it be a unipolar, multi-polar or bipolar world? How do you see Russias relations with the United States and unified Europe, and what place do you see Ukraine having on the political map of the world?
VLADIMIR PUTIN: With major countries such as the United States we have relations based on a partnership, and in some areas of our work together, for example, the fight against terrorism, we are even allies. We share very close positions regarding non-proliferation of weapons of mass destruction. The United States is a major trade and economic partner for us, as is the European Union. Almost half of all Russias foreign trade is with the European Union. This is a large share. There is no doubt that this is of vital importance for us.
Aside from anything else, Russia, like Ukraine, is above all a European country, even though its territory extends all the way to the Pacific Ocean. But in terms of its culture, mentality and way of life, it is above all a European country. And so, we naturally must make ourselves a part of the world humanitarian and economic space.
As for whether we will have a multi-polar or unipolar world, I for one think that the world can only be multi-polar. Nothing can have only one pole. If the world were to be unipolar it would not be able to survive because there would be no inner energy and no development incentive. The world is very diverse and we are seeing the emergence of many poles. Look at what is happening in Asia China, India and Japan are all developing very actively, as are Asian countries in general. South Africa is showing visible growth and Latin American countries, Brazil and other countries are also developing effectively.
I think there can be no doubt that the we will have a multi-polar world. As for what place Russia, Ukraine and our other neighbours will occupy in this world, we are large countries, technologically developed countries with a high level of culture. I will say it again, it is hard to imagine the whole diversity of European culture without Ukrainian culture and Russian culture. They are both important. Slavic culture in general accounts for a large part of European culture, and we also have to be part of it in the economy and in the defence sphere.
I would like to see both Russia and Ukraine hold a worthy place in world civilisation, be influential states and be such countries that ensure their citizens a decent standard of living.
QUESTION: Mr President, moving away now from the big world picture to more immediate, practical matters, at a recent meeting with Leonid Kuchma and Viktor Yanukovich, you discussed the question of introducing a harmonised living standard in Russia and Ukraine. How do you see this standard and how could it be introduced and reached in practice?
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