Hungary and Russia mend fences

Russian prime minister Mihail Kasyanov concluded a two-day visit to Budapest earlier this week. The visit was important not just to normalise bilateral relations, which had turned sour during the tenure of the previous government, but also to boost economic and trade relations between Hungary and Russia. Agi Varga of Radio Budapest has the following report:

The prime ministerial visit took place after a period of recess of nine years. Therefore, as foreign state secretary András Bársony says, it can be called a milestone in bilateral relations, for two different reasons.

"First of all, this is almost the beginning of a new era because the independent Russian Federation and the almost European Union member Hungary opened a new chapter after a longstanding Communist-type relationship and after almost ten years' break. Secondly, there is a new base for this relationship - the pragmatic handling of all the problems and issues which are connecting the two countries."

Without ignoring the importance of the political part of the visit, we have to note that the talks focused on trade issues and economic co-operation. No wonder, as the visit by the Hungarian premier Péter Medgyessy to Moscow last year gave an impetus to bilateral trade: in the first half of this year it increased by 40 per cent compared to the respective period of last year. The concrete issues discussed now may further boost bilateral trade.

Michail Kasyanov, photo: CTK

"Of course there are special interests from the Russian side - the construction of the Budapest metro liners, and of course cooperation in businesses like the MOL-Russian cooperation on the field of oil and gas. There is Hungarian interest of course to cooperate with the Komerz truck company, where we had very traditional relationship. But there are several other projects which, with a good political climate, could be very successful."

Apart from trade relations, the agenda also included issues like the participation of the Russian TVEL company in cleaning up the aftermath of the April malfunctions at the Paks Nuclear Power Plant, on which an agreement was signed, or such delicate and most debated questions as the transfer of arms licences originating from the Soviet era, and the restitution of books to the library of Sárospatak.

Progress is still slow in that debate, as before the parliamentary elections in Russia due in December there will be no opportunity to change the relevant Russian legislation. But the Hungarian side believes that from the beginning of next year there will be a chance to come to an agreement.