Russia protects its citizens from the crisis

• Interview with his Excellency, Mr. Oleg S. Malginov,

Extraordinary and plenipotentiary ambassador of the Russian Federation in Bucharest • "We would very much like to see Romania become more attractive for Russian investors"

Reporter: Your Excellency, how will the Romanian-Russian relations be affected by the placement of the anti-missile shield on the territory of Romania?

Oleg S. Malginov: We are, of course, taking into consideration the fact that the elements of the anti-missile shield in Romania are the elements of a global anti-missile defense system.

Yes, for the Russian Federation the deployment of the anti-missile protection system is indeed a problem, the problem of our mutual relationships with NATO, the United States and the member states of the Alliance.

We understand that the anti-missile shield is not a Romanian invention, but in our military, strategic and political assessments, we can't ignore the fact that one of the elements of this system which is potentially dangerous to the Russian Federation will be here in Romania. We are speaking about this openly.

As you know, the Russian Federation is open to the continuation of a complex dialog with the countries of NATO, the US and Romania, and we are hoping that, even though there is little time left, we will fund a mutually acceptable solution.

To a certain extent this measure affects the general content of the dialog between our countries.

Reporter: Gazprom has expressed its interest in the privatization of the Romanian energy companies (blocks of shares in Trans­gaz, Romgaz, Transelectrica, Hidroelectrica, Nuclearelectrica, CET II Oradea, and the Venus Oilreg refinery). TISE recently announced that it would want to buy Oltchim. There have also been rumors that Gazprom wants to buy the 9.84% stake in Petrom. Please tell us about the current stage of the negotiations for the acquisitions of these blocks of shares.

Oleg S. Malginov: The Embassy does not handle concrete economic projects. This is the business of the companies in the two countries.

We have acted and we are striving to continue to support the development of economic relations between Russia and Romania, of the relations between the commercial partners in the two countries. In general, the companies which are present on the Romanian market - Lukoil, TMK - have positive things to say about the working experiences and the business climate in the country.

Every company has problems sometimes, and we want to help them deal with them. We would very much like to see Romania become more attractive for Russian investors. We are hoping that, if we succeed in achieving such agreements, they will contribute to the development and consolidation of the Russian-Romanian relations.

Reporter: The US has also expressed its interest in the energy industry in Romania. How do you think Russia will deal with the competition from the US on the Romanian market?

Oleg S. Malginov: I won't be the one to speak on behalf of the United States; I will let my friend, US ambassador Mark Gitenstein, do that.

We do not plan to fight the US on the Romanian market. But competition is something normal. And the rules of a healthy competition - efficient work, quality solutions, reasonable prices - are the same for everyone, and we will follow them as well. Russia has its own specific advantages - whether it's thermal, hydroelectric or nuclear energy. And we hope that the Romanian party will appreciate them.

Reporter: Our sources claim that president Vladimir Putin will visit Romania. Could you confirm/deny this information?

Oleg S. Malginov: I am very grateful to the leaders of the Romanian authorities because they speak about the need to boost our relations. Recently, an inter-ministry agreement was signed, on the segment of education, which will allow the exchange of students, and the elevation of the level of study of Russian in Romania. We are talking significant steps towards signing an agreement to open the Russian Science and Culture Center in Bucharest and the Romanian Cultural Institute in Moscow. Basically, the intergovernmental program for cooperation in the areas of culture, education, mass-media, sports and tourism is ready to be signed. The program is intended to intensify the contacts between the young generations in our two countries.

Slowly, the mutual interest of the experts is being awakened. The supplementing of our actions with concrete actions, even though they may not be that significant in the beginning, should drive us closer, instead of further apart.

In the economic sector, there are always numerous working opportunities. Finding reliable and responsible partners, from both sides, in order to implement the provisions of the statement concerning modernization, concluded between Russia and the EU, is a priority for the embassy. The advancement in these directions will involve the creation of premises which will encourage meetings, negotiations between experts and the signing of documents by top officials. As soon as we meet a necessary material, the meetings will not delay.

Reporter: Your Excellency, the tensions between Iran and Israel are becoming intense, and there are voices which say that Israel will attack Iran soon. Do you feel that Israel has the capacity to strike Iran and to destroy its nuclear installations?

Oleg S. Malginov: In general, there is a problem with Iran's uranium enrichment works. We all know that this matter is subject to the strict control of the International Atomic Energy Agency (IAEA). Also, there is the "group of the six" which is conducting negotiations with Iran, a group of international mediators, made up of Russia, China, the US, France, Great Britain and Germany, who, since 2003, together with the AIEA, have been asking Iran to stop such activities, which could represent a threat for the nuclear non-proliferation regime.

The meeting which took place in Moscow, on June 18th-June 19th, this year, was intended to confirm the constructive measures taken in Baghdad, on May 23rd - May 24th, 2012.

For the first time, the representatives of Iran were involved in a true discussion, but the disagreements remain significant.

For Russia, it is important that the negotiation process continue and that the matter gets solved without threats or sanctions. We are interested in having further meetings take place, and not to have extended delays. In this regard, we are in constant contact not just with the members of the "group of the six\", but with top officials of the EU as well.

Russia has repeatedly said that the problems need to be dealt with through negotiations, through the direct involvement of countries and the finding of mutual agreements. The issues of trust, peaceful coexistence, development, have never been solved through military means. That is why, speaking about the sufficient or insufficient power of a state in conflict, not only doesn't make any sense, but is actually harmful and destructive for the negotiation process. All of our partners know where the Russian Federation stands - the crisis can only be solved through negotiations, and in stages, based on the principle of reciprocity and by achieving optimum relaxation.

Reporter: Could Israel launch an attack against Iran without the support of the United States?

Oleg S. Malginov: The idea of attacking Iran, as we know, is not supported by any of the responsible politicians. Nobody needs a large scale military conflict in the Middle East. Furthermore, the military operation plays the game of the radical anti-western forces and reinforces the confrontational spirit in the Muslim world.

Reporter: Russia and China have repeatedly expressed their concern over a potential attack against Iran/Syria. President Vladimir Putin has expressed the opinion that an attack could have truly catastrophic consequences. What is your opinion?

Oleg S. Malginov: Concerning the situation in Syria, our position is unchanged. Russia can't agree to the idea of a military intervention similar to the one which took place in Libya.

Moscow has already invited, at the international reunion concerning Syria, fifteen countries, including Iran, which stipulates the analysis of the need to carry out the plan of the UN and Arab League special envoy, Kofi Annan.

We all agree that, in order to normalize the situation in the Middle East, all the parties involved - both the domestic factions of the various countries, as well as the foreign players - must show responsibility, moderation, actively encourage the parties involved in the conflict to establish a full dialogue, on a national level, without any foreign involvement. These principles are fully applicable to the situation arising in Syria and around it.

The task is to get together all the key foreign players in order to determine a coordinated and efficient action for all the parties in Syria, in the same direction, in order to persuade them to immediately stop violence and to sit down at the negotiations table.

In this case, it is essential to avoid the "heating up" of the confrontation through unilateral measures, intended to escalate the negative atmosphere in the public area, especially through emotional statements, and especially by instigating some units of the armed opposition to a harder stance and to the refusal to hold further talks with the authorities.

In Syria, there is a need for a political process, which would prevent a civil war and bloodshed.

Russia is not protecting the regime of Bashar al-Assad, but no decision which can change the internal organization of the country can be made in the capitals of other countries.

That should only be the option of the Syrian people, regardless of how difficult that would be. Regardless of how hard it would be to reach an agreement, even if it were fragile and unstable in the beginning, all the political forces in Syria should strive towards that goal.

And the fact that in Syria the conflict is supported by political sponsors, and Russia is not among them, is not a secret, and that country knows where we stand.

We can't act like we don't see the devastating effects which the actions of the coalition brought about in Libya, when many of the resolutions of the UN Security Council were broken.

The finding of an acceptable solution in Iraq is also taking place with great difficulty, in Afghanistan the situation remains difficult, and in the event that these countries will find a way out of that situation - it will be their people that do so, rather than imposed from the outside.

Reporter: There are an increasing number of voices speaking about the change in the world order. What is your opinion on this aspect?

Oleg S. Malginov: As for the change of the world order, I am not one to rush using such words, but it is undeniable that right now, a restructuring of the international relations is taking place.

This process began at the end of the Cold War, after the disintegration of the Soviet Union, when, together with the opposing blocks, also disappeared the moderation and the counterweight.

The last twenty years have shown that it is impossible to build a world based on a single-centric model. This could lead to new victims, chaos in many countries, unpredictability.

We are seeing a polycentric world, where there are several areas of influence, centers of "intelligent power", a world dominated by international law, over several decades, rather than by the rule of might, where countries would respect each other, and live in equality, partnership, and not be tempted to reinforce their own security to the detriment of others or to impose their vision upon free countries, through methods which would not always be diplomatic.

If we were to succeed in making sure that the principles promoted by Russia and by most countries work in practice, then we will truly be able to speak about the new truly democratic world order.

Reporter: Do you consider that the so-called "Arab spring" of late yielded results or that it has been a failure?

Oleg S. Malginov: The Arab spring is a notion which covers many countries and numerous factors.

Objectively, the premises for it developed in the region when the large masses of people have begun expressing their discontent over their economic situation, particularly over the economic global crisis. The youth realized the lack of prospects and the inability of achieving their future under the objective economic conditions - the difficult situation of social and political stagnation, rigid state structures, often focused on authoritarian n methods. Another important factor was the dissemination of new technologies, which allowed them to compare their standard of living to that of other countries. In this truly objective protest movement, other types of political forces intervened: for instance, religious ones, sometimes radical. Unfortunately, there was violence as well, from the government as well as protesters.

Therefore there is no simple way to describe these processes. These are processes of objective evolution, which span several stages.

Where they take place in a normal manner, without foreign interferences, the situation has stabilized, and in many cases the evolution took place without the excessive use of force.

Where the violence is used, especially from foreign forces, the problems aren't solved.

But they shouldn't be kept in a state of harassment. The world should apply the principles learned through suffering in the 20th century and consecrated through international instruments, such as the UN charter, so as not to harm the development process, to prevent the nations from sinking into bloody conflicts.

Reporter: How has Russia been affected by the world economic crisis?

Oleg S. Malginov: One of Russia's greatest achievements is that we have protected Russia from the first wave, we did not allowed the mass pauperization of the population and we are still working on creating conditions for raising the living standard of the population, in the conditions of the not so simple current global recession.

The Russian economy is growing at a sustained rate, this being the main basis for reaching its social goals.

In 2011, Russia had the lowest inflation rate in its modern history - 4%. Our goal remains its continual decrease. In the first quarter of 2012, the unempl1oyment rate was 6.5%. Four years ago, in the beginning of the economic crisis, it was the same.

It reset itself to the level it was at before the beginning of the crisis when it comes to the output of goods and services, and the average growth rate of the Russian economy has stabilized around 4%.

The main goal to prevent the return of the crisis in Russia is the continuous development of the economy, the maximum development of the system for protecting citizens against the foreign manifestations of the crisis, but it is also necessary to consistently and quickly renew all the aspects of the economic life of the country - from the technical and material foundation to the approaches of the economic policy of the country.

The task for the future is to build a modern and competitive industry and infrastructure, the development of the services area and of an efficient agriculture.

Reporter: Thank you and I wish you luck!