Medvedev on economic quest to Germany
Published: 16 July, 2009, 13:47
Dmitry Medvedev and Angela Merkel at Schleissheim Castle in Munich, July 16, 2009 (AFP Photo DDP / Timm Schamberger)
(2.8Mb) embed videoTAGS: Investment, Meeting, Medvedev, Merkel, Big deal, Economy
Russia's president Dmitry Medvedev has arrived in Munich to discuss bilateral trade, economic co-operation, and energy security with Chancellor Angel Merkel later on Thursday.
Kremlin aide Sergey Prikhodko informed journalists that Russia and Germany are ready to sign a €500 million ($706 million) credit agreement to finance joint projects, primarily in mechanical engineering.
"A credit agreement is expected to be signed between the Vnesheconombank state-run corporation and Germany's KfW Ipex-Bank," said Prikhodko.
The Russian President and German Chancellor will also discuss the issue of a joint bid for German carmaker Opel by an international consortium of Austrian-Canadian auto supplies company Magna and Russia's largest bank, Sberbank.
Prikhodko said, "We will call on them to support the deal. We will also voice our support for it.”
On May 30, Berlin agreed to support the Magna International and Sberbank consortium to take over Opel, currently owned by US car giant General Motors. Russian truck maker GAZ, owned by billionaire Oleg Deripaska, is prepared to act as industrial partner.
But now it looks like OPEL's parent company GM is considering offers from other contenders, including China's Beijing Automotive.
The two leaders will also discuss Nord Stream, the new joint multi-billion dollar undersea pipeline to pump gas into Europe.
It will run under the Baltic Sea directly from Russia to Germany, so that the fuel can avoid using transit countries.
Also, German engineering giant Siemens AG and Russia’s rail monopoly Russian Railways (RZD) are set to sign an agreement to establish a joint venture for the production of a new generation of locomotives.
The parties are also expected to sign a memorandum of understanding to modernize Pulkovo airport in Russia's Northern capital of St. Petersburg.
On a more global scale, Medvedev and Merkel are also expected to talk about North Korea, Iran and last week's G8 summit in Italy.
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Russia Germany bilateral economics is excellent for both countries. Both Germany and Russia know this. Germany has excellent products and services to offer Russia, Russia has natural resources and the possibility of creating great end products for the domestic and international markets. There is a strong symbiosis possible between the nations, and this is what Germany and Russia need to develop and build on, for the prosperity of both Nations. Russia EU makes little sense, Russia Germany makes perfect sense. Germany is under the cosh of the EU finacially, basically being forced to pay for the won't work nations in the EU. Russia offers Germany great export and investment opportunities, Gemany offers Russia a strong foundation of industrial technology to build world beating commercial products. Russia Germany is just part of a new free world of trade, Russia needs to develop more along these themes, as it is already doing, developing the same model with others like France, Italy and Spain. This will create a prosperous tier 1 european economic alliance, putting business before politics.
And thus, Russia and Germany SPEARHEAD the FREE MARKET, in real time. GREAT WORK! Thank you, from all the billions who also want to have a fair playing ground on planet earth.