PM says Russia ready for end to sanctions, expects steps from EU

MOSCOW, Feb 12 (PRIME) -- It is time to put an end to economic sanctions, and Russia is ready for it, but expects the E.U. to make the first step, Prime Minister Dmitry Medvedev said in an interview with German newspaper Handelsblatt released late Thursday.

“We should find courage and admit that it is time we cease economic sanctions, which do not lead to anything good for either Europe or Russia. Our country is ready for it, but, I emphasize one more time, we are waiting for our E.U. colleagues to make the first move,” he said.

Medvedev said that relations between Russia and Germany were “sick, but can be cured.”

He said that trade between the two countries decreased by 40%, while trade with the E.U. almost halved.

“But it will be worse if we continue to deepen this situation,” he said.

Medvedev said that the E.U. should decide whether it is restoring relations with Russia or not.

“There is only one way out: to restore relations, contacts, overcome stereotypes, reach reasonable compromises,” he said. A significant part of this way should be made by European partners, he said.

“Even despite the fact that E.U. countries are members of NATO, despite the fact that the U.S. is the largest global player, the E.U. has its own fate, and heads of European countries, not business (business wants to trade and invest – everything is clear here), should decide whether they are restoring relations with Russia or not,” Medvedev said.

Russia will return to normal cooperation with Europe in many sectors with pleasure if European colleagues make a relevant decision, Medvedev said.

“There is no political decision here, this is just pragmatic necessity – to be both in Europe and Asia. If our European colleagues decide to unfreeze normal cooperation, we will return to cooperation in many industries with pleasure,” Medvedev said.

Relations between Russia and the West have deteriorated to their worst since the Cold War in 2014 due to a military conflict in Ukraine. The West introduced sanctions against some Russian individuals and firms and further against the energy and banking sectors. In response, Russia prohibited food imports from some countries, including the U.S., the E.U., Canada, Australia, and Norway.

In mid-2015, the mutual sanctions were prolonged for one year.

Medvedev also said that Russia’s project to build the Nord Stream-2 gas pipeline was reasonable and profitable.

“I will bring a group of Russian businessmen (to Germany), we will be talking about restoring business cooperation. And there are a lot of prospects there starting with what we have already done and finishing with Nord Stream-2, which is certainly useful for our largest partners,” he said.

“As I understand, the German government justifiably says that this is a commercial project. We view it the same way. If this project did not give money to us, we would never come forward with it.”

Medvedev also said he believed that Russia can make its budget independent of raw material exports by two-thirds by increasing revenue from exports of industrial products and arms.

“On the whole, I believe that we are quite capable of bringing our income balance to a situation when for instance one third will be formed from hydrocarbons and two thirds from selling industry products, high technologies, agriculture, arms. This will have a significant impact on everything, including the ruble rate, he said.

In 2015, Russia’s revenue from arms exports amounted to around U.S. $15 billion, he said.

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