Medvedev, Merkel to discuss Opel, Wadan deals.

SOCHI, August 14 (Itar-Tass) -- Russian President Dmitry Medvedev and
German Chancellor Angela Merkel will meet in the Black Sea spa of Sochi on
Friday to boost bilateral trade at a time of the global economic crisis.

A Kremlin official said a bid by Canadian automaker Magna and Russia's
Sberbank to buy a stake in Opel, the European unit of General Motors, will
be definitely discussed, as well as Russian investment into struggling
firms like Dresden-based chipmaker Qimonda and Germany's fifth biggest
shipyards Wadan.
The Kremlin official said the two leaders plan to discuss in detail
the conditions for Magna-Sberbank consortium to purchase Opel assets "with
benefits for Germany and Russia."
Merkel backed the Magna-Sberbank bid for Opel over a competing offer
from Belgian private equity firm RHJ International. On Thursday, Magna's
co-Chief Executive Siegfried Wolf said agreement in principle had been
reached with General Motors to buy the stake.
As for Wadan shipyards, German authorities quoted Gazprom board member
and Russian presidential envoy for energy cooperation Igor Yusufov as
suggesting an investment of 40.5 million euro that will preserve from 1600
to 2500 jobs. German media speculated Gazprom may buy in the shipyards.
"Given proper social and economic reasons and commercial guarantees,
such projects can become springboards for strategic alliances between
Russian and German hi-tech companies in carmaking, shipbuilding and
electronics," the Kremlin official said.
Medvedev and Merkel are also expected to discuss the construction of
the Nord Stream gas pipeline that is to link the two countries across the
Baltic Sea bed and ensure reliable supplies bypassing Ukraine. The
financial plight of the transit country and the political turmoil on the
eve of the presidential election this winter make European countries
nervous about reliability of supplies.
The economic crisis more than halved the trade turnover between Russia
and Germany in the first five months of 2009. However Germany remained
Russia's biggest trade partner with a 17.6-billion dollar turnover in the
first six months of the year. Accrued German investments in Russia total
17.4 billion dollars, while Russian investments in Germany comprise 2.8
billion dollars.
"In Sochi the leaders will discuss details of joint steps to stimulate
the diversification of trade and economic ties to make them more stable
and resistant to the fluctuations of global markets," the Kremlin official
said.
Medvedev and Merkel will discuss "reforming the international
financial and economic system on the basis of multilateral principles,"
the official said adding Russia supports Merkel's initiative to draft
sustainable development charter and plans to promote it at the upcoming
G20 summit in September.
As for international issues, Medvedev and Merkel will discuss the
initiative to conclude a European security treaty, a positive agenda for
Russia-NATO dialogue, disarmament and arms control, strategic stability
and restoration of conventional forces regime in Europe.
The Kremlin official said Russian and German interests considerably
coincide in such spheres, as nuclear non-proliferation, political and
diplomatic settlement of the Iranian nuclear problem, stability in
Afghanistan and cooperation in non-military cargo delivery to the
international forces in the country, promotion of the peace process in the
Middle East and settlement of other regional conflicts.


.Putin to discuss demographic policy, support to agriculture.

SOCHI, August 14 (Itar-Tass) -- Russian Prime Minister Vladimir Putin
will chair on Friday a meeting of the council on national priority
projects that will consider demographic policy and support to agriculture.
The government press service said the council will focus on support to
orphans and handicapped children within the framework of the national
demographic policy up to 2025.
As for agriculture, the government upped appropriations 1.6-fold from
100 billion rubles to 157.8 billion in 2009.
According to First Deputy Prime Minister Viktor Zubkov in charge of
agriculture, 53 out of 84 Russian regions reported a growth this year,
while others - a decline.
In general, agricultural production upped one percent in the first
half of the year. Meat and poultry production comprised 4.1 million tons,
a 5.9-percent growth against the same period last year. Milk production
fell 0.5 percent to 16 million tons.


.Russia, Venezuela to prepare Chavez visit.

ST. PETERSBURG, August 14 (Itar-Tass) -- Russian Deputy Prime Minister
Igor Sechin and Venezuela's Vice-President Ramon Carrizales will co-chair
a session of bilateral high-level cooperation commission on Friday to
finalize preparation for a visit of Venezuelan President Hugo Chavez to
Russia scheduled for September.
Carrizales said considerable progress had been reached in energy and
oil cooperation and now it is planned to focus on science and
technologies, environmental protection, fishing, tourism, culture, as well
as on the fight against drug trafficking.
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